BASF Report 2022

Universal Standards

Universal Standards

Link

Comment

Global Compact Principles

SDG

2-1

Organizational details

About this Report: Data
BASF Group: Sites and Verbund
Corporate legal structure
BASF on the Capital Market: Graphic: Shareholder structure

 

 

 

2-2

Entities included in the organization's sustainability reporting

About this Report: Data
BASF Group: Sites and Verbund

 

 

 

2-3

Reporting period, frequency and contact point

Back cover
About this Report: Data

 

 

 

2-4

Restatements of information

Sustainability Along the Value Chain: Energy and Climate Protection: Table: BASF Group’s greenhouse gas emissions according to the Greenhouse Gas Protocol
Material topics in focus: Emissions to air, waste and remediation
Waste

 

 

 

2-5

External assurance

About This Report: Content and structure
External audit
Overview

 

 

 

2-6

Activities, value chains and other business relationships

BASF Group: Sites and Verbund
Procurement and sales markets
Our Sustainability Concept
Sustainability Along the Value Chain: Supplier management: Global procurement

The procurement competence center supports BASF’s business units in developing sustainable solutions so they can stand out from the competition in addressing market-specific requirements.
Any significant changes to reporting on individual topics are explained in the relevant section.

 

 

2-7

Employees

Sustainability Along the Value Chain: Employees: Number of employees
Graphic: Employees by region
Competition for talent

Since the number of permanent employees is largely identical to the total number of employees, the breakdown by region and gender largely corresponds to the information required under a. above. Consequently, a separate breakdown for permanent employees is not provided.

Due to the small number of temporary employees, we consider a breakdown by region to be immaterial.

The form of employment referred to in b. iii. above is not a relevant employment category for us.

The levels of granularity required under b. iv. and b. v. are not currently reflected by our data collection systems.

We are working on an expansion of our data collection systems to be able to map these levels of granularity in the future.

All employee data are given in headcount.

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2-8

Workers who are not employees

 

At BASF SE, we only deploy relatively few staff from employment agencies (compared with the number of our own employees). We only work together with counterparties that are bound by collective agreements.
The systems used to collect data on employees and contractors will be adjusted in accordance with the final European legal requirements, which will be published and subsequently ratified in the course of 2023.

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2-9

Governance structure and composition

Our Sustainability Concept: Our organizational and management structures
Management and Supervisory Boards: Board of Executive Directors, Supervisory Board
Corporate Governance Report

 

 

 

2-10

Nomination and selection of the highest governance body

Corporate Governance Report: Graphic: Two-tier management system of BASF SE
Supervision of company management by the Supervisory Board
Competence profile, diversity concept and objectives for the composition of the Supervisory Board

 

 

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2-11

Chair of the highest governance body

Management and Supervisory Boards: Board of Executive Directors
Supervisory Board

Not applicable, as the chair of the Supervisory Board is not a senior executive.

 

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2-12

Role of the highest governance body in overseeing the management of impacts

Our Sustainability Concept: Our organizational and management structures
Corporate Governance Report: Report of the Supervisory Board: Independence and efficiency review
Supervision of company management by the Supervisory Board

 

 

 

2-13

Delegation of responsibility for managing impacts

Our Sustainability Concept: Our organizational and management structures
Opportunities and Risks: Risk management process

 

 

 

2-14

Role of the highest governance body in sustainability reporting

 

The report is discussed and released in a reading by the entire Board of Executive Directors.
The Supervisory Board approves the Report and thus the Nonfinancial Statement as part of the accounts meeting.

 

 

2-15

Conflicts of interest

Corporate Governance Report: Direction and management by the Board of Executive Directors
Graphic: Two-tier management system of BASF SE
Supervision of company management by the Supervisory Board
Competence profile, diversity concept and objectives for the composition of the Supervisory Board
Report of the Supervisory Board: Independence and efficiency review

 

 

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2-16

Communication of critical concerns

Sustainability Along the Value Chain: Employees: Employee engagement
Compliance: Monitoring adherence to our compliance principles

Sustainability is integrated into our major decision-making processes. The Board of Executive Directors is informed as part of standard processes.
Critical concerns or complaints can be addressed through channels such as our global grievance mechanisms (external hotlines). We carefully investigated all cases of suspected misconduct that came to our attention and took countermeasures on a case-by-case basis. In 2022, 9 cases were reported to the Board of Executive Directors. The exact content of any complaints is sensitive due to regulatory or legal restrictions.

 

 

2-17

Collective knowledge of the highest governance body

Our Sustainability Concept: Our organizational and management structures

 

 

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2-18

Evaluation of the performance of the highest governance body

Corporate Governance Report: Graphic: Two-tier management system of BASF SE
Supervision of company management by the Supervisory Board
Report of the Supervisory Board: Independence and efficiency review
Compensation Report

 

 

 

2-19

Remuneration policies

Compensation Report

 

 

 

2-20

Process to determine remuneration

Sustainability Along the Value Chain: Employees: Compensation and benefits
Mutual respect and open dialog
Report of the Supervisory Board: Compensation issues and composition of the Board of Executive Directors
Compensation Report
Annual Shareholders' Meeting 2022

Due to the heterogenous nature of legal requirements around the world, this dialog is implemented in accordance with the statutory framework by the countries and companies responsible in each case.

 

 

2-21

Annual total compensation ratio

 

Fair compensation is a relevant topic for BASF. This includes aspects of internal (distribution) equity and socially acceptable minimum compensation.

Our compensation is based on three principles: function, market and performance orientation. Furthermore, it is important to us that minimum standards for compensation are complied with and, where possible, exceeded. BASF regularly monitors compliance with minimum standards around the world.

However, BASF does not consider the compensation indicators required by GRI 2-21 to be a meaningful assessment of the fairness of compensation structures. For this reason, such indicators are neither measured nor reported by BASF.

For this reason, such indicators are neither measured nor reported by BASF.

 

 

2-22

Statement on sustainable development strategy

Letter from the Chairman of the Board of Executive Directors

 

 

 

2-23

Policy commitments

Material topics in focus: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards
Sustainability Along the Value Chain: Supplier Management: What we expect from our suppliers
Our Management Systems: Responsible Care Management System
Material topics in focus: Occupational Safety, Process Safety and Health Protection: Introduction
Strategy and Governance
Occupational safety
Process safety
Emergency response, Corporate and Cyber Security
Product Safety: Strategy and Governance
Global chemicals regulations
Material topics in focus: Product Stewardship for Crop Protection Products and Seeds
Transportation Safety: Strategy and Governance
Preventive safety measures
Compliance
Website: Policy commitment

BASF’s human rights position was further developed as part of the implementation of the requirements of the SCA and approved by the Board of Executive Directors in November 2022. The updated version of the policy commitment is available externally at www.basf.com/humanrights.

All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher training every three years. In addition, all leaders and employees not covered by collective agreements confirm their adherence to our Code of Conduct every year. Governance body members are familiar with our Code of Conduct.

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2-24

Embedding policy commitments

Material topics in focus: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Our stakeholder management
Compliance
Corporate Governance Report: Implementation of the German Corporate Governance Code (GCGC)

 

 

 

2-25

Processes to remediate negative impacts

Material topics in focus: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Measuring sustainable value added
Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards
Sustainability Along the Value Chain: Employees: Employee engagement
Compliance
Forecast: Opportunities and Risks
Corporate Governance Report: Direction and management by the Board of Executive Directors
Supervision of company management by the Supervisory Board

Our strategic evaluation process to define new focus topics along the value chain was discussed by the Corporate Sustainability Board, the Stakeholder Advisory Panel as well as by the Board of Executive Directors, among other bodies.The Board of Executive Directors resolved on the further course of action.
AEPW website: https://www.basf.com/global/en/who-we-are/sustainability/we-produce-safely-and-efficiently/environmental-protection/resources-and-ecosystems/engagement-against-plastic-waste/Alliance-to-end-plastic-waste.html.

As a rule, the Corporate Sustainability Board meets quarterly.

 

 

2-26

Mechanisms for seeking advice and raising concerns

Material topics in focus: Our Values and Global Standards
Our Sustainability Concept: Our strategic approach
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards
Compliance: Monitoring adherence to our compliance principles

 

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2-27

Compliance with laws and regulations

Notes: Risks from litigation and claims

Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements.
There were no significant cases of noncompliance with laws by BASF in the business year.
No significant fines had to be paid in the business year.

 

 

2-28

Membership associations

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Emergency Response, Corporate and Cyber Security
Compliance: Monitoring adherence to our compliance principles

Overview of networks in which BASF is active: https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/networks.html

 

 

2-29

Approach to stakeholder engagement

Our Sustainability Concept: Our strategic approach
Sustainability Along the Value Chain: Employees: Employee engagement
Mutual respect and open dialog
Stakeholder Engagement
Our Management Systems: Quality management system

We have defined persons responsible for dialog with individual stakeholder groups. These engage in constructive dialog with stakeholders relevant to BASF (e.g., between employee and employer representatives, between business units and customers, with politics, investors, the media and other social stakeholders).
To even better understand our customer’s needs, we regularly ask them for feedback on our performance. We introduced the Net Promoter System® worldwide to establish an ongoing and more intensive dialog with our customers as well as to further increase customer satisfaction and loyalty. Via a digital platform, we are creating a framework for learning from feedback and acting quickly.
We also worked on an expanded IT-based solution for managing our customer relationships (customer relationship management system).

 

 

2-30

Collective bargaining agreements

Sustainability Along the Value Chain: Employees: Mutual respect and open dialog
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards: International labor and social standards

92% of employees are employed by a company where working conditions are based on a collective agreement with trade unions or agreements with an internal employee representative body.
BASF monitors the national law of all of the countries in which it operates as part of a global management process and evaluates compliance with the International Labor and Social Standards (ILSS), including freedom of association. If a country’s national law contains no or lower requirements, action plans are drawn up to successively close these gaps in a reasonable time frame. If conflicts with national law or practices arise, we ensure that we act in accordance with our values and internationally recognized principles and do not violate the law of the country concerned. We are also committed to social dialog with employee representatives where freedom of association is not guaranteed under national law to the same extent as in European legal systems.

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