E4 Biodiversity and Ecosystems
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
ESRS-Kennzeichnung:
Biodiversity is the foundation for functioning ecosystems and is under significant pressure. As a chemical company, we use valuable natural resources such as water, air and soil. At the same time, our business activities have an impact on these resources, for example through emissions to the environment or the sourcing of renewable raw materials.
ESRS-Kennzeichnung:
In our double materiality assessment, the topic Biodiversity and Ecosystems was defined as material. In our assessment, we drew on three sources of information, in particular:
Assessments of various stakeholders and external experts
Assessments by BASF expert units and from specialist literature
Analysis of digital sources using big data and AI tools, such as the World Wide Fund for Nature’s (WWF) Biodiversity Risk Filter (BRF)
Our key stakeholder groups include investors, customers, legislators, suppliers, insurers, competitors and various civil society actors such as nongovernmental organizations. We actively seek out partnerships with relevant interest groups and organizations worldwide, for example in the Taskforce on Nature-related Financial Disclosures (TNFD) or at the World Business Council for Sustainable Development (WBCSD), to expand our knowledge, raise awareness about biodiversity and drive necessary actions forward.
Since 2023, our Nature Advisory Council (NAC) has been a dedicated BASF advisory board for topics related to the protection of biodiversity and ecosystems (see General Disclosures). The NAC supports us in obtaining an independent societal perspective on our activities in relation to nature and biodiversity topics.
In the event that our business activities negatively impact or could negatively impact affected communities, we involve them or their representatives in one of our stakeholder engagement formats (see S3 Affected Communities).
ESRS-Kennzeichnung:
As a chemical company, our business activities interface with nature, and therefore with biodiversity and ecosystems, in three key areas. These are:
Sourcing of raw materials
Operation of production sites
Attributes of our products
In order to better categorize and understand the impact of BASF on nature at our production sites, in their immediate surroundings and along the value chain, we use the five drivers of biodiversity loss as defined by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES1): land use change, pollution, climate change, overexploitation of resources, and invasive species. We also followed this logic in our double materiality assessment.
The following topics are dealt with in separate chapters: climate change in E1 Climate Change, environmental pollution in E2 Pollution Prevention, use of water as a resource in E3 Water. We did not examine the driver invasive species more closely, as we do not consider it relevant for BASF.
Thus, this chapter focuses on land use and the impacts of our business activities on land, as well as the condition of the natural environment in proximity to our relevant sites and in relevant value chains (see below).
No material impacts were identified with regard to desertification and soil sealing.
Our double materiality assessment identified four material impacts on biodiversity and ecosystems as well as one associated material risk for BASF (see tables below). We systematically record opportunities and risks as part of our general opportunity and risk management.
Impact |
Evaluation |
Position in the value chain |
Description |
|---|---|---|---|
Impact on land degradation due to the sourcing of raw materials |
Negative |
Upstream value chain |
By sourcing raw materials, we provide impetus for their cultivation and extraction. In some cases, this leads to land degradation. |
Contribution of production sites to global drivers of biodiversity loss |
Negative |
BASF’s own operations |
BASF production sites can have a negative impact on biodiversity and ecosystems through their contribution to climate change, land use, pollution and resource consumption. |
The loss of biodiversity may be facilitated by the use of crop protection products |
Negative, |
Downstream value chain |
In the downstream value chain, the use of crop protection products across large agricultural areas could result in a reduction of biodiversity. |
More sustainable intensification of farming |
Positive |
Downstream value chain |
The use of our products, including crop protection products in agriculture, enables farmers to increase their productivity, thus supporting food production. |
Risk |
Evaluation |
Description |
|---|---|---|
Regulatory requirements for the marketing of chemicals |
Negative |
Changes in the law and other regulatory developments related to how chemicals may actually or are likely to affect the state of species, affect our opportunities to market BASF products. |
1 The IPBES is a multilateral agency of the United Nations (U.N.) and collects global scientific data, analyzes this data and indicates political courses of action.
Strategy and Governance
ESRS-Kennzeichnung:
We are currently undergoing a transformation toward climate neutrality and observance of the planetary boundaries. To this end, we have set ourselves ambitious targets (see Our Targets and Target Achievement 2025) that also impact our business models and our strategy as well as how they interface with nature, biodiversity and ecosystems.
-
We want to continuously improve the efficiency of our resource use and make an increasing contribution to the circular economy (see E5 Resource Use and Circular Economy).
-
We aim to use more biomass as a raw material in the upstream value chain and in our production, and to increasingly cover our energy needs from renewable sources.
-
We steer our product portfolio with regard to the product-related contributions to improved sustainability (TripleS: Sustainable Solution Steering, see General Disclosures).
These areas of transformation are also relevant to many of our stakeholders (see General Disclosures).
In 2025, we assessed the resilience of our business models generally (see Double Materiality Assessment) as well as specifically for the area of biodiversity and ecosystems. The resilience assessment, which is relevant to this topic, considered in particular material impacts, risks and opportunities for BASF, dependencies on ecosystem services (raw materials, energy and water) and stakeholder requirements. The assessment was conducted by our biodiversity expert group under the basic assumption of a predominant continuity concerning our current raw material base and considered short, medium and long-term developments. In this way, we want to contribute to a future-oriented sustainability strategy. Resilience was discussed with the internal Biodiversity Sounding Panel in 2025. This committee consists of representatives from BASF’s Corporate Sustainability and Corporate Environmental Protection, Health, Safety & Quality units and aims to coordinate BASF’s approach to the topic Biodiversity and impact on nature. Elements of the resilience analysis were also discussed in the Nature Advisory Council in order to validate them externally. This included, for example, our handling of renewable raw materials. In addition, stakeholder views were incorporated into our resilience analysis using big data analyses and experts from the operating divisions.
The core of our business model is the production of chemical products from raw materials that are largely based on hydrocarbons and organic feedstocks. We are continuously working to further improve the efficiency of our production processes (see E1 Climate Change). We also align our product portfolio with sustainability aspects in a continuous process using the TripleS method, among others. We measure the progress of this alignment on the basis of a specific target (see General Disclosures).
The raw materials we use are largely of fossil origin, including, for example, gas and crude oil-based petrochemical raw materials such as naphtha and benzene. The proportion of renewable raw materials is significantly lower (see E5 Resource Use and Circular Economy). We consider the biodiversity and ecosystem risks associated with the sourcing of fossil raw materials to be low. This conclusion was based on analyses using the WWF’s Biodiversity Risk Filter (BRF) (see Influence of production sites on biodiversity loss), an internationally recognized and science-based platform. For BASF, the BRF analysis identifies water as the most important dependency in terms of ecosystem services. In contrast, the supply of fossil raw materials is not a risk identified here. We therefore rate the resilience of our raw material supply with regard to procurement risks in the area of biodiversity and ecosystems as high.
Renewable raw materials are more dependent on ecosystem services (water, pollinators, soil, climate). BASF’s sourcing of raw materials is diversified geographically (e.g., Europe and Asia Pacific), through different suppliers and through different raw material categories such as palm oil and European biomethane. Because we do not see any accumulation of risks for renewable raw materials, which account for well under 10% of our raw material base, there are no critical dependencies.
Our energy supply is dominated by fossil fuels, but is increasingly being completed by renewable energies (see E1 Climate Change). We try to mitigate risks related to biodiversity through investments and diversification of our suppliers and our energy supply.
Although water is an increasingly scarce resource globally, it is not rated as a critical resilience factor due to high recycling rates (see E3 Water) and sustainable water management by BASF (see E3 Water).
BASF is broadly positioned in many markets, which increases our resilience. In the field of agriculture, we see a high level of resilience also in future as product demand continues to grow due to basic needs, climate adaptation and regulatory developments.
A material risk for BASF is regulation: New regulations due to actual or anticipated impacts of our products on nature may affect market approval. However, thanks to our track record in a complex regulatory environment, we are well positioned.
Overall, our business model shows high resilience to biodiversity-related risks, due to diversification of markets, raw materials and suppliers, proactive raw material management and the strategic steering of our product portfolio regarding sustainability.
ESRS-Kennzeichnung:
Our governance approaches and our policies for the topic Biodiversity and Ecosystems are based on three internationally recognized reference points:
The five drivers of biodiversity loss as defined by IPBES (see E4 Biodiversity and Ecosystems)
The Kunming Montreal Global Biodiversity Framework (GBF) and its target of reducing biodiversity loss and reversing the trend by 2030
The United Nations’ Sustainable Development Goals (SDGs), including Zero hunger (SDG 2) and Life on land (SDG 15)
General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (see General Disclosures). These include the Supplier Code of Conduct, BASF’s Position on Forest Protection, the Responsible Care Management System and, as part of this, our global standards for environmental protection. Also included are the procurement requirement, our principles for responsible sourcing of renewable raw materials and the BASF Palm Sourcing Policy. The specific aspects of these policies are explained in the following section.
Negative impact: Land use through the sourcing of raw materials
ESRS-Kennzeichnung:
The use of renewable raw materials can reduce the carbon footprint of our products, but it poses risks to biodiversity and ecosystems, for example through monocultures or deforestation. For this reason, we take environmental and social aspects into account in our risk analyses (e.g., working conditions and food security), rely on certified standards such as International Sustainability and Carbon Certification (ISCC) or Roundtable on Sustainable Palm Oil (RSPO), perform life cycle analyses and seek dialog with stakeholders in order to identify conflicting goals and act responsibly.
By sourcing raw materials from extractive processes such as mining, we influence land degradation and ecosystems, for example through soil erosion, biodiversity loss and water pollution. Our procurement requirement obliges suppliers to comply with environmental and social standards (see Policies regarding the sourcing of renewable raw materials); through circular economy, recycling projects such as lithium-ion batteries and the Verbund concept (see General Disclosures), we reduce the need for raw material extraction and use resources efficiently.
The Care Chemicals division publishes the Responsible Sourcing Report (formerly: Palm Sourcing Report) every year. The report documents actions and progress to promote sustainability and transparency in the palm value chain. Since 2023, it has also covered additional renewable raw materials.
Policies regarding the sourcing of renewable raw materials
ESRS-Kennzeichnung:
Our Procurement organization has set out requirements for our upstream value chain in a global, risk-based management system. We have defined the relevant standards for this in a global procurement requirement (see S2 Workers in the Value Chain). The requirement includes a risk assessment of our suppliers, which also examines their sustainability performance. The aim here, among other things, is to counter the negative impacts on the environment caused by the sourcing of renewable raw materials. We expect our suppliers to comply with internationally recognized environmental standards. Our expectations are laid down in our Supplier Code of Conduct (see S2 Workers in the Value Chain), which is integrated into our purchasing conditions. The Code of Conduct covers among other topics our expectations with regard to environmental, labor and social standards as well as the protection of biodiversity. In 2024, we added principles for the responsible sourcing of renewable raw materials to our procurement requirement, with the aim of halting or reversing the loss of biodiversity. We monitor compliance with these principles by means of concrete actions for the respective renewable raw materials, which are explained under Sourcing of renewable raw materials.
Palm oil and palm kernel oil are among our most important renewable raw materials, which we use primarily for ingredients in cosmetics, detergents, cleaning products and food products. In addition to the Supplier Code of Conduct, the global BASF Palm Sourcing Policy specifies BASF’s requirements for suppliers. These include the protection of forests and ecosystems, traceability, the protection of Indigenous rights and the inclusion of smallholder structures.
When using biological resources, we adhere to the provisions of the international Nagoya Protocol. This supplementary agreement to the U.N.’s Convention on Biological Diversity regulates access to genetic resources and benefit sharing. It sets out obligations (for example, compensation payments) for the users of genetic resources such as plant-based raw materials. We use internal control mechanisms such as Responsible Care audits to monitor compliance with these standards.
Our global Position on Forest Protection underscores our responsibility to conserve biodiversity-relevant areas such as carbon-rich forests and peatlands. Implementation is performed via unit-specific risk management systems, supported by minimum standards of the Corporate Center and audits by the Corporate Audit unit. Investment decisions take forest protection into account. In 2025, the position was updated to include the EU Deforestation Regulation (EUDR). BASF again achieved leadership status in the CDP assessment for forests (A rating) in 2025.
Influence of production sites on biodiversity loss
ESRS-Kennzeichnung:
About 20% of our around 1,200 sites worldwide are production plants. These contribute to the pressure on biodiversity and ecosystems through various effects, although direct causalities per site are usually difficult to establish. However, we record several metrics in our environmental database that are indicative of our contributions, such as emissions. In addition, our land use is documented by our Real Estate Management in terms of land occupation. This data forms the basis for monitoring the impact of our production sites on nature and supporting possible improvements.
We consider the influence of our sites on biodiversity and ecosystems based on effects that we link to the drivers of biodiversity loss as defined by IPBES (see E4 Biodiversity and Ecosystems). This analysis assigns environmental parameters recorded in our environmental database as well as data on land use to the individual drivers of biodiversity loss and enables a comparative consideration of the production site portfolio. The driver of invasive species is not taken into account, as we do not consider this relevant for BASF. Therefore, the land use and land occupation of our production sites (indicative of land use), emissions such as eutrophication and acidification (indicative of environmental pollution), the extraction and consumption of water (indicative of overexploitation of natural resources), and site-specific greenhouse gas equivalents (climate change) were specifically considered.
In addition, our production sites were analyzed with regard to their impacts and dependencies on the basis of 33 indicators using the WWF’s Biodiversity Risk Filter (BRF), an internationally recognized and science-based platform. The BRF assessment indicated that BASF’s greatest dependency lies in the topic Water, both in terms of the quality and availability of water for our production sites. For one group of sites, a potential impact was identified due to tropical cyclones. Ranked third was the risk of extreme heat. BASF already actively addresses these three dependencies as part of its site management. The BRF analysis identified pollution as the greatest potential impact of BASF at our sites. However, this figure was considerably lower than the BRF estimate for the chemical sector overall. BASF systematically addresses the risk of environmental pollution. Strategies and actions are explained in E2 Pollution Prevention. The proximity of our sites to biodiversity-sensitive areas is described in the Metrics section.
Policies regarding our production sites and their impact on biodiversity loss
ESRS-Kennzeichnung:
We are committed to environmental protection and sustainability at our sites. The aim is to minimize the impact of production on people and the environment and to achieve continuous improvement. We do not have dedicated policies for the protection of biodiversity in proximity to our sites, but instead rely on our comprehensive Responsible Care Management System. Alongside global requirements and health and safety standards (see E2 Pollution Prevention), this also covers environmental protection.
BASF sets stringent standards for the exploration and development of new sites and incorporates requirements for environmentally friendly development and the inclusion and protection of nature and ecosystems in accordance with our Responsible Care Management System.
Land use is subject to a high level of control by internal mechanisms and requirements, by authorities and within the framework of registrations and approval procedures.
Potential negative impact: Crop protection products and their impact on biodiversity and land
ESRS-Kennzeichnung:
The intensive agricultural use of large areas – often using crop protection products – competes with the preservation of near-natural habitats. Farms play an important role here: They not only need to secure yields, but must also meet societal expectations and protect the environment and nature. Actions to promote biodiversity can help to reduce negative impacts and reconcile economic and environmental goals. BASF has been committed to more sustainable agriculture for over 20 years, for example in the BASF Farm Network. This network brings together farmers, environmental organizations, universities and companies to demonstrate how agriculture and nature conservation can coexist through practical projects. The aim is to promote biodiversity on agricultural land and to use water and soil more sustainably.
Improper use of crop protection products can harm people and the environment. We are therefore focusing our smart stewardship activities on comprehensive education and continuously improving our solutions for farmers. In addition to aspects such as efficacy and productivity, this includes safe use by our customers and impact on the environment. We consider the entire life cycle of our products – from research and development to their proper use and disposal.
Crop protection products and seeds are subject to strict legal requirements worldwide. New active ingredients and cultivation systems are only approved by respective authorities if it has been comprehensively proven that they are harmless to humans, animals and the environment when used properly.
Positive impact: More sustainable intensification of farming
ESRS-Kennzeichnung:
Modern crop protection products make an important contribution to the more sustainable intensification of agriculture. They help to increase yields, reduce crop losses caused by pests and secure the global food supply. At the same time, they enable a more efficient use of resources such as water and fertilizers, which reduces the environmental impact. A more sustainable increase in food production on existing agricultural land can also reduce the pressure to expand agricultural land into adjacent natural areas and thus contribute to the protection of biodiversity.
The Agricultural Solutions division develops innovative solutions for sustainable agriculture – including climate-resistant seeds, biological and chemical pesticides and digital technologies for precise field management. The aim is to reduce CO2 emissions per metric ton of crop yield and to expand digital applications to over 400 million hectares. These measures are part of a comprehensive strategy that combines productivity and resource conservation, for agriculture that is both economically and environmentally more sustainable.
Policies regarding the impacts of crop protection products and the more sustainable intensification of agriculture
ESRS-Kennzeichnung:
We endeavor to continuously minimize the negative impact of our products on safety, health and the environment and to continuously optimize our products. This commitment is based on the objectives set forth by the Responsible Care® initiative of the International Council of Chemical Associations (ICCA) and our own global environmental protection standards. For more information, see chapters E2 Pollution Prevention and E3 Water. As with all BASF products, crop protection products are systematically documented and evaluated using the TripleS method. This method takes into account environmental, social and economic aspects throughout the entire life cycle of a product.
In the area of crop protection, we are also committed to international standards, including:
The International Code of Conduct on Pesticide Management
The Principles of Integrated Pest Management (IPM)
We evaluate our products and solutions in crop protection and seeds throughout the entire research, development and registration process for potential risks and impacts to the ecosystems in which they are used.
Material risk: Regulatory requirements for chemicals
ESRS-Kennzeichnung:
The chemical industry is facing substantial risks due to changes to and development of regulatory requirements or approval conditions. These also affect the area of biodiversity and ecosystems. More stringent regulations may limit the approval, use or marketing of certain chemicals. BASF plans to respond to regulatory changes with a combination of proactive and reactive measures. These include continuous monitoring, analysis of the regulatory framework and steering of our product portfolio using the TripleS method. We also invest in research and development in order to continuously develop chemicals with improved toxicological and ecotoxicological properties and to thus meet the new requirements. Moreover, BASF is committed to working closely with stakeholders and regulatory bodies to ensure that company practices comply with the latest standards.
Actions
ESRS-Kennzeichnung:
We take actions in a variety of areas to ease the pressure on biodiversity and ecosystems or to impact them positively. We consider these to be key measures:
The steering of our product portfolio toward more sustainability through TripleS
Our actions concerning the sourcing of certified palm-based raw materials
Further actions outlined in the following section often represent locally organized activities, projects and initiatives. They are not governed by a centrally managed action plan.
Actions in the topics Climate Change and Pollution are described in the chapters E1 Climate Change and E2 Pollution Prevention. Our actions concerning the protection of water as a resource are also discussed separately in chapter E3 Water.
Sourcing of renewable raw materials
We are involved in various initiatives in our upstream value chain to manage the sourcing of renewable raw materials in a way that protects local biodiversity, for example palm-based raw materials. Due to the risk of deforestation during the extraction of these raw materials, we regularly monitor potential deforestation violations at our suppliers’ sites with the Palmoil.io platform. We have been a member of the RSPO for more than 20 years and contribute to further national and international initiatives, such as the German Forum for Sustainable Palm Oil (FONAP) and the High Carbon Stock Approach (HCSA) organization.
We source most of our palm-based raw materials from Malaysia and Indonesia. As a study conducted for the European Commission shows, smallholders account for around one-third of the total volumes produced there. Through our involvement in local initiatives, we aim to expand our supplier base for RSPO-certified palm products while simultaneously supporting smallholder structures and sustainable production methods that help to protect local biodiversity. Since 2024, we have been working in partnership with the Indonesian nonprofit organization Kaleka in a local follow-up project to support smallholders in Central Kalimantan. The aim is to promote regenerative agricultural methods as well as to help establish favorable political framework conditions and regulations. We are also involved in a local project in Sumatra through the Forum for Sustainable Palm Oil.
Since 2023, BASF has been working with the NGO Solidaridad to promote sustainable palm oil production and improve the living conditions of smallholders in Indonesia and Malaysia. Since 2024, the focus has been on resilient production systems and integrative market access, including preparation for international standards and certifications. In addition, a partnership has been established with Solidaridad and Fedepalma to promote more sustainable palm oil production in Colombia through improved cultivation practices.
We have developed a grievance mechanism for our palm value chain that reflects our commitment to the No Deforestation, No Peat and No Exploitation (NDPE) policy and that encompasses both direct partners and third-party suppliers. In the event of violations, we take action up to contract termination. In our decisions, we also take into account results from the RSPO’s grievance mechanism.
We are also driving the market transformation toward certified, sustainably sourced oleochemicals for another renewable raw material: coconut oil. We use coconut oil to manufacture ingredients for products such as detergents, cleaning agents and cosmetics. We have, for example, certified our production sites in Cassina Rizzardi, Italy, and Zona Franca, Spain, under the Rainforest Alliance Mass Balance Coconut scheme.
BASF sites and production plants
In the management of our sites and their plants, we aim to act as a good neighbor and strive toward conserving biodiversity and ecosystems and minimizing negative impacts on the environment. Continuous monitoring and documentation of emissions to air and water as well as the implementation of measures for improvement are an integral part of our environmental management. This is regularly audited by the Corporate Environmental Protection, Health, Safety & Quality unit of the Corporate Center.
We continuously optimize the production processes at our sites. This includes initiatives to improve energy efficiency (see E1 Climate Change), reduce emissions to air and water and avoid waste (see E2 Pollution Prevention, E3 Water and E5 Resource Use and Circular Economy). We primarily rely on proactive actions and methods to protect biodiversity and only to a lesser degree on compensation measures. These are sometimes necessary, on account of conditions imposed by financial institutions and official bodies, for example.
When it comes to investment decisions on the construction of new sites or the expansion of existing ones, the potential impacts on forests and other biodiversity criteria are systematically considered. In this regard, a decision may also be taken to institute compensatory measures.
Impacts in our downstream value chain
In our corporate strategy, we focus on enabling our customers’ efforts toward a green transformation with suitable BASF products. Today, we are already using alternative raw materials from renewable sources or recycling, for example, in selected value chains in order to add sustainability attributes to our products. To increase transparency regarding our product-specific greenhouse gas emissions and to implement our CO2 reduction measures where they add the greatest value, we use a digital solution to calculate the carbon footprint of about 40,000 products on an ongoing basis (see E1 Climate Change).
With TripleS, we have established a steering tool for our product portfolio based on the sustainability performance of our products (see General Disclosures). Through our TripleS target, we annually review the effectiveness of these measures in the area of biodiversity and ecosystems.
Our Agricultural Solutions division offers farmers various solutions to promote biodiversity in agriculture while simultaneously ensuring more productive and more efficient food production. An example of this are our free e-learning modules on biodiversity and agriculture. The interactive training is aimed at interested farmers and provides practical knowledge on the promotion of biodiversity in the field. We document participation in our training and development programs annually. In the 2025 business year, 228,904 people participated (2024: 199,427 people).
Global Targets
ESRS-Kennzeichnung:
Our sustainability-related corporate targets (for additional information, see Our Targets and Target Achievement 2025) also contribute to the protection of nature. These include our climate protection targets to reduce our greenhouse gas emissions (see E1 Climate Change), our targets in the area of resource use and circular economy (see E5 Resource Use and Circular Economy) and our sustainable water management targets (see E3 Water).
BASF has not set a dedicated target for the topic Biodiversity and Ecosystems in general or specifically with regard to the impacts of our sites or our production activities. We are reviewing whether we can derive a separate target for the topic Biodiversity and Ecosystems, either from various approaches or as an overarching ambition.
In relation to our impact in connection with the sourcing of renewable raw materials, we set ourselves the target in 2015 of purchasing 100% certified palm oil and palm kernel oil from 2020 onward. We regard this target as a key indicator of whether our measures in the upstream value chain are successful. With 79.2% in 2025, we were unable to meet this target due to insufficient availability of RSPO-certified palm kernel oil (2024: 98.1%). The introduction of the EU Deforestation Regulation further exacerbates the situation, resulting in shortages of raw materials suitable for the European market. In 2025, we were able to trace about 98% of our global palm footprint2 back to the oil mill (2024: 97%).
We remain committed to sourcing 100% certified sustainable palm oil and palm kernel oil to the extent that this is commercially available and possible. By 2030, we also want to source derivatives of palm oil and palm kernel oil as 100% certified (2025: 8.4%, 2024: 10.2%). RSPO certification remains our preferred standard. If we consider alternative standards or systems, they must demonstrate an equally stringent focus on environmental protection, labor standards and human rights. In addition, we will strictly adhere to our responsible sourcing principles.
With regard to the impact of BASF’s raw material sourcing, we are focusing on our strategic target of almost doubling sales with Loop Solutions to €10 billion by 2030 compared to the base year 2023 (see E5 Resource Use and Circular Economy). In doing so, we aim to contribute to the more efficient use of resources and counteract climate change. This can also ease the pressure on ecosystems, as the use of recycled raw materials reduces demand for newly extracted raw materials.
As part of our Responsible Care Management System, for example, we review the effectiveness of our actions in terms of combating the impacts of our raw material sourcing. We assess our impacts in the downstream value chain using the TripleS method and the associated target in relation to products that have a positive impact on sustainability (see General Disclosures). These Sustainable-Future Solutions also include products that have less impact on ecosystems during production, for example through the use of biomass or recycled raw materials. An example of this is surfactants made from certified, more sustainable palm oil and palm kernel oil, which are used in detergents, cleaning agents and dishwashing detergents.
We do not rely on compensation measures to reach the aforementioned targets. With our selected actions and targets, we focus on avoiding or reducing negative impacts pursuant to the mitigation hierarchy.
2 The global palm footprint comprises our sourcing of palm oil, palm kernel oil and palm-based primary derivatives.
Metrics
ESRS-Kennzeichnung:
BASF production sites use established and globally recognized biodiversity and nature conservation databases3 to document the proximity to biodiversity-sensitive areas and assess possible direct negative impacts on these areas. For this purpose, a radius of three kilometers starting from the center of the site or its postal address is taken into account. A further development of this approach for particularly large sites is currently under development. The sites document their results in our environmental database (see General Disclosures). In 2025, 29%4 of our production sites5 bordered a biodiversity-sensitive area, of which no sites reported negative impacts on such an area.
If a case with direct negative impacts on a biodiversity-sensitive area becomes known, we identify their cause. This could, for example, be a product leak, habitat destruction due to construction work or the feeding in of untreated wastewater. Once we have concluded our investigation, we review the actions planned or already implemented in order to reduce or mitigate any impacts on nature.
- More information on our commitment to biodiversity
- More information on our Position on Forest Protection
3 BASF uses the EU-wide protected area networks Natura 2000, the UNESCO World Heritage Site, and the International Union for Conservation of Nature (IUCN), for example.
4 The method for recording this metric was adjusted in the 2025 business year. As a result, the figure for 2025 can no longer be meaningfully compared with that of the previous year. We have therefore decided not to publish the previous year’s figure.
5 A radius of three kilometers around production sites was defined for the analysis of biodiversity-sensitive areas.
