General Disclosures

ESRS-Kennzeichnung:ESRS 2 BP-1, ESRS 2 BP-2

The reporting period is the 2025 business year. We include relevant information made available up to the preparation of this report by the Board of Executive Directors at the accounts meeting on February 23, 2026. The general bases of preparation for the Sustainability Statement are described in Overview – About this Report and the Combined Management’s Report. Information about corporate governance disclosures relating to sustainability (Disclosure Requirements ESRS 2 GOV-1, ESRS 2 GOV-2 and ESRS 2 GOV-3) is provided in the Corporate Governance Report. Information on our corporate due diligence (ESRS 2 GOV-4) is incorporated into chapter G1 Business Conduct. In 2025, we are applying the simplifications based on the European Commission’s transitional arrangements (quick fix) in accordance with the Delegated Act 2023/2772. Corresponding information can be found in the chapters E4 Biodiversity and Ecosystems, S2 Workers in the Value Chain and S3 Affected Communities. In some cases, we have made use of incorporation by reference to minimize redundancies. An overview of the data points incorporated by reference can be found under ESRS Index. We consider the year, in which the ESRS first achieve legal effect, such as the exemption of a European subsidiary, or are to be applied in the context of a national CSRD implementation, to be the year of first implementation. In 2025, we again applied the ESRS on a voluntary basis. As stated by ESRS 1 paragraph 7.7, we have opted not to disclose information relating to research and development (R&D), know-how or the results of innovation that has commercial value and whose publication would result in a competitive disadvantage for BASF.

Material topics along the value chain form the focal points of our reporting and define the reporting boundaries. In identifying, prioritizing and validating material sustainability-related topics, we follow the principle of double materiality, taking into consideration financial materiality and impact materiality. Opportunities and risks have been considered along the entire value chain. The following chapters deal with the material topics, subtopics and sub-subtopics in line with our double materiality assessment. Disclosure requirements and data points have been selected according to the materiality of the information if they are considered useful for decision-making and relevant for stakeholders. For more information on the materiality assessment, see Double Materiality Assessment. We describe the impacts, risks and opportunities identified in our double materiality assessment in the chapters concerning the respective topical standards. The chapter on opportunity and risk management also includes opportunities and risks pursuant to Disclosure Requirement GOV-5 and presents disclosures on our opportunity and risk management as well as on internal controls over reporting (see Opportunities and Risks). The internal control system for sustainability reporting is described in this chapter, under Internal Control Processes in Relation to Sustainability Reporting.

ESRS-Kennzeichnung:ESRS 2 IRO-2

Our double materiality assessment evaluated the topic S4 Consumers and End Users as not material, given that only a very small portion of our products is sold directly to end users. We provide material information on product safety and product stewardship in the chapter E2 Pollution Prevention.

The scope of consolidation applicable to sustainability reporting corresponds to financial reporting. We present general disclosures on the consolidation principles applied to sustainability reporting, additional disclosures on the content and structure of this report and the forward-looking statements and forecasts made in Overview – About This Report and the Combined Management’s Report. The figures reported on employees in the chapter S1 Own Workforce include all employees working at an entity included in the scope of consolidation of the BASF Group as of December 31, 2025. Any deviations of specific metrics from that reference framework have been noted. We report all data concerning the worldwide production sites of BASF SE, its fully consolidated subsidiaries and its proportionately consolidated joint operations on a topic-specific basis in the chapters covering environmental and social topics. In the environmental reporting of the Group Financial Statements, fully consolidated subsidiaries of BASF SE in which BASF holds an interest of less than 100% are included in full. In the case of proportionally consolidated joint operations and equity-accounted joint ventures over which BASF has operating control, the ESRS data points collected on the basis of operating control are taken into account in full, regardless of BASF’s equity interest. Data on work-related injuries at all sites of BASF SE and its subsidiaries as well as joint operations and joint ventures in which we have authority in terms of safety management is compiled worldwide, regardless of our equity interest, and reported in full. Unless otherwise indicated, data on social responsibility and transportation safety refers to the BASF Group’s scope of consolidation.

Our product portfolio also changed in 2025 based on acquisitions and divestitures. The material portfolio measures are listed under Material Investments and Portfolio Measures. In October 2025, BASF completed the divestiture of its Brazilian decorative paints business from its Coatings division and signed a binding transaction agreement with Carlyle on the sale of the automotive OEM coatings, automotive refinish coatings and surface treatment business units (see Agreed transactions). The discontinued coatings business was included in full in sustainability reporting, with the exception of information on the more sustainable steering of our product portfolio (see TripleS method and Loop Solutions). In the EU taxonomy, we took the coatings business into account in accordance with the IFRS^® Accounting Standards (see EU Taxonomy). For parameters related to the intensity of, for example, CO₂ emissions, energy and water consumption per sales, comparable BASF Group sales including the discontinued coatings business have been taken into account.

In accordance with the EU Taxonomy Regulation and the supplementary delegated acts, the (Consolidated) Sustainability Statement includes the proportion of the Group’s taxonomy-eligible and taxonomy-aligned sales revenue, capital expenditures (including acquisitions and excluding goodwill in accordance with the EU taxonomy) and operating expenditures for the 2025 business year for the six climate targets (“climate change mitigation,” “climate change adaptation,” “sustainable use and protection of water and marine resources,” “transition to a circular economy,” “pollution prevention and control” and “protection and restoration of biodiversity and ecosystems”).