BASF Report 2021

BASF – A Sustainable Investment

At a glance

  • CDP again awards BASF Leadership status
  • BASF maintains “Prime” status in ISS ESG rating
  • BASF recognized as a Global Compact LEAD company

BASF has participated in the program established by the international organization CDP (formerly the Carbon Disclosure Project) for reporting on data relevant to climate protection since 2004. CDP represents over 590 investors with over $110 trillion in assets and more than 200 major organizations with $5.5 trillion in purchasing power. In 2021, BASF again scored an A– on CDP’s Climate List, giving it Leadership status. In the scoring framework used by CDP in 2021, BASF was ranked among the top third of participating chemical companies.

BASF was rated A– in the CDP assessment for sustainable water management. The assessment takes into account how transparently companies report on their water management activities and how they reduce risks such as water scarcity. CDP also evaluates the extent to which product developments can contribute to sustainable water management for customers of the companies assessed. BASF continues to implement its sustainable water management target at all relevant production sites (Verbund sites and sites in water stress areas).

BASF participated in the CDP’s “Forests” assessment for the second time in 2021 and was ranked A–, as in the previous year. As a participant in various value chains, BASF is committed to ending deforestation in these supply chains. Consequently, BASF is one of the companies with Leadership status, as for climate protection and water management.

BASF maintained its Prime status in the ISS ESG rating developed by Institutional Shareholder Services and is among the top 7% of the companies assessed. BASF received special recognition for addressing key sustainability issues such as environmental management, energy efficiency and business ethics with a comprehensive set of measures and processes.

In Sustainalytics’1 ESG Risk Ratings, BASF is ranked among the top 10% of companies in diversified chemicals. It was commended for the fact that its sustainability targets are reflected in the compensation for the Board of Executive Directors, underlining strong overall management of environmental, social and governance matters.

BASF was again recognized as a Global Compact LEAD company by the U.N. Global Compact in 2021. BASF consistently supports the U.N. Global Compact and its 10 principles of responsible business conduct and the Sustainable Development Goals.

BASF was among the top 10% in the World Benchmarking Alliance’s (WBA) Food and Agriculture Benchmark, which assessed 350 companies from the food and agricultural sector on sustainable business practices.

1 Sustainalytics provides institutional investors and companies with ESG and corporate governance research, ratings and analytics.

Value chain
A value chain describes the successive steps in a production process: from raw materials through various intermediate steps, such as transportation and production, to the finished product.
In the BASF Verbund, plants are intelligently connected. In this system, chemical processes consume less energy, produce higher product yields and conserve resources. The by-products of one plant serve as feedstock elsewhere, creating efficient value chains – from basic chemicals to high value-added solutions such as coatings or crop protection products. Our Verbund concept – realized in production, technologies, the market and digitalization – enables innovative solutions for a sustainable future.