Our Sustainability Concept
We bring our corporate purpose – We create chemistry for a sustainable future – to life by systematically integrating sustainability into our strategy, our business, and our assessment, steering and compensation systems. We want to secure our long-term success with products, solutions and technologies that create value added for our customers, the environment and society.
At a glance
- Sustainability aspects integrated into corporate steering
- New targets for climate protection (Scope 3.1) and portfolio steering
- Human rights aspects embedded in decision-making processes
Our strategic approach
Sustainability is integrated into our decision-making processes. Our opportunities and risk management systematically records effects, opportunities and risks arising from our business activities for sustainability topics and how these impact our businesses in a positive or negative way. Decisions regarding investments, acquisitions and divestitures are made while taking comprehensive assessments of sustainability impacts into account. The entire Board of Executive Directors is responsible for sustainability topics, which should be driven forward by all employees. Therefore, BASF’s senior executives’ long-term variable compensation is also based on the achievement of our targets for reducing CO2 emissions.
We pursue a holistic sustainability approach that covers the entire value chain – from our suppliers and our own activities to our customers – and contributes to environmental, social and governance key sustainability topics (ESG). We have formulated commitments for our conduct and underpinned these with corresponding targets and measures. Based on our corporate strategy, we steer the global sustainability target for climate protection for 2030 via the most important key performance indicator (KPI) absolute CO2 emissions1. To this end, we have strengthened the necessary steering mechanisms and control systems at Group level, for example with internal reviews. Our transition plan to reduce greenhouse gas emissions includes the use of renewable energy, measures to avoid CO2 emissions and circular economy solutions. In addition to our target to achieve net-zero emissions by 2050,2 we are pursuing further targets for a more sustainable portfolio, for responsible procurement, resource-efficient and safe production, engaged employees and diversity.
1 Target includes Scope 1 and Scope 2 emissions (excluding the sale of energy to third parties) as well as Scope 3.1 emissions. Greenhouse gases according to the Greenhouse Gas Protocol are converted into CO2 equivalents (CO2e).
2 Target includes Scope 1 and Scope 2 emissions (excluding the sale of energy to third parties) as well as Scope 3.1 emissions, excluding greenhouse gas emissions from BASF trading business. Greenhouse gases according to the Greenhouse Gas Protocol are converted into CO2 equivalents (CO2e).