Notes

The circular economy is a regenerative system in which economic growth is decoupled from the consumption of finite resources. The circular economy is based on the fundamental principles of preventing waste and pollution, using products and materials for as long as possible and regenerating natural systems at the same time.

In order to increase the competitiveness of its operating divisions, BASF is introducing a set of measures. These include the introduction of new financial steering indicators tailored to each business. Additionally, our operating divisions are continuing to adjust their specific business models and processes, supported by adapted process structures, IT systems and governance frameworks.

In this report, we use the word policy or requirement to describe internal frameworks that set out the fundamental guidelines of our company. At BASF, policies are set by the Board of Executive Directors and define principles relating to a specific topic. Separate requirements define the processes for implementing a policy.

A steam cracker is a plant in which steam is used to “crack” naphtha (petroleum) or natural gas. The resulting petrochemicals are the raw materials used to produce most of BASF’s products.

Traits are commercial plant characteristics, such as an inherent resistance to certain herbicides or an inherent defense against certain insects.

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.