23. Risks from Litigation and Claims

ESRS 2 SBM-3

Since 2019, numerous lawsuits filed by individuals claiming personal injury or by municipalities or states claiming property or natural resource damages for alleged contamination of public and private water supplies through per-fluorinated and polyfluorinated alkyl compounds (PFAS) have been pending against members of BASF Group, primarily BASF Corporation (a U.S. subsidiary of BASF) in the United States. In 2024, several lawsuits were also filed by individuals in Canada, one action was filed on behalf of a First Nation, and one by the Province of British Columbia against BASF Canada Inc. (a Canadian subsidiary of BASF), BASF Corporation and BASF SE. The lawsuits generally allege PFAS contamination and name as defendants manufacturers/distributors of aqueous film-forming foam (AFFF) and their suppliers. BASF is named as a defendant as the legal successor to Ciba, which until 2003 produced and distributed fluorochemical products (trade name Lodyne) used in AFFF.

Overall, members of the BASF Group are defendants in over 4,500 of such lawsuits as of January 2025 and are defending against these claims. At this time, BASF cannot predict the outcome of resolving these matters or what potential actions may be taken by regulatory agencies. An adverse outcome could be material to BASF’s financial results.

On May 20, 2024, BASF Corporation agreed to a class settlement with U.S. public water systems that detected PFAS in their drinking water sources, which they allege to be associated with the use of AFFF products. The BASF Corporation agreed to contribute €305 million ($316.5 million) in total (€301 million ($312.5 million) to resolve the PFAS claims, plus €4 million ($4 million) toward settlement administration costs). The BASF Corporation paid the administration costs in July 2024, and the amount to resolve the PFAS claims in early March 2025. BASF Corporation has a significant amount of insurance through a number of insurers and is pursuing recovery of its settlement payment under those policies. The settlement releases these claims against BASF Corporation, Ciba and other related corporate entities. It does not constitute an admission of liability or wrongdoing by BASF Corporation or Ciba. BASF and its relevant affiliates also intend to continue to defend itself in all remaining AFFF matters. Furthermore, BASF SE and its affiliated companies are defendants in or parties to a variety of legal or regulatory proceedings on a recurring basis. To our current knowledge, none of these proceedings will have a material effect on the economic situation of BASF.