How We Create Value
BUSINESS MODEL
Corporate purpose
We create chemistry for a sustainable future
Our targets
- Profitable growth
- Effective climate protection
- Product portfolio geared to innovation and sustainability
- Responsible procurement
- Resource-efficient and safe production
- Employee engagement and diversity
How we operate
- Our customers are at the core of our strategy. We have a global, customer-focused presence and strive to achieve a leading position in our markets and business areas.
- We build on a broad and diversified investor base.
- Sustainability and innovation is at the center of everything we do and a driver for growth and value.
- BASF’s Verbund structure is the backbone of our efficient and reliable production.
- Our segments address customer needs with differentiated solutions and business strategies.
- Safety is always our number one priority.
- Effective corporate governance ensures responsible conduct.
- We value our employees and stakeholders and treat them with respect.
Outputs
Financial
€6.9
billion
EBIT before special items
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€3.0
billion
Proposed dividend payment to shareholders1
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Innovation
~ 1,000
New patents worldwide
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~ €12
billion
Sales of products that have been on the market for up to five years
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Operations
~ 45,000
Sales products
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6.2
MMT
CO2 avoided through Verbund and combined heat and power generation
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Environment
> 1,000
Mass balance products based on alternative raw materials
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79
%
Water demand recirculated
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Employees
81
%
Engagement index according to 2022 employee survey
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27.2
%
Women in leadership positions
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Partnerships
Outcomes2
Economic
We make positive contributions by
- Driving forward growth, progress and value creation
- Strengthening our customers’ competitiveness and innovative strength
- Accelerating the digital transformation of the industry
- Offering our investors an attractive dividend yield
Potential negative impacts
- Weaker growth stimulus as a result of the slowing economy, the war in Ukraine, the coronavirus pandemic and global trade conflicts
- A weaker share performance
Our countermeasures
- Disciplined implementation of our corporate strategy
- Systematic cost management
- Active portfolio management
- Optimizing the cost of capital
Environmental
We make positive contributions by creating products that
- Contribute to climate protection
- Conserve resources, avoid waste and strengthen circularity
- Pave the way for climate-smart mobility
- Are environmentally friendly and safe to use
Negative impacts
- The emission of CO2 and other gases that affect the climate
- Resource consumption and non-recyclable waste
- Potential misuse or spillage of products
Our countermeasures
- Carbon management
- Circular Economy Program
- Sustainable water and energy management
- Responsible Care management (including product stewardship)
Social
We make positive contributions because we
- Offer products that improve people’s quality of life
- Provide attractive jobs and promote diversity
- Pay taxes and competitive wages and salaries
- Promote integration and help overcome social challenges
Potential negative impacts
- Risk of violation of labor, environmental and social standards in the production of the raw materials we procure
- Personnel adjustments
Our countermeasures
- Careful selection, evaluation and development of suppliers
- Projects to improve sustainability in the supply chains
- Compliance Program and Code of Conduct
- Employee training programs
Impact
We achieve long-term business success by creating value for our shareholders, our company, the environment and society
1 Based on the dividend proposed by the Board of Executive Directors and the number of outstanding shares as of December 31, 2022 (893,854,929)
2 The outcomes category shows examples of positive contributions as well as negative impacts and the measures we take to mitigate them.