Interests and Views of Our Stakeholders

ESRS-Kennzeichnung:ESRS 2 SBM-2

The acceptance and support of our stakeholders is crucial for our business success. BASF is therefore engaged in continuous dialog with employees, shareholders, suppliers, customers, members of civil society, nongovernmental organizations and international organizations. We can be contacted directly through our grievance mechanism (see G1 Business Conduct), are involved in networks and initiatives, receive critical feedback in our advisory councils and in the dialog with civil society, and contribute to the communities at our sites.

Sustainability topics are discussed and overseen by the Board of Executive Directors. Our stakeholders’ different perspectives and expectations are taken into account when deciding on the company’s strategic direction, discussing targets and making business decisions, including through direct dialog with the Board of Executive Directors. For instance, we rely on discussions in our advisory councils (see Advisory Councils) to identify areas for improvement with regard to human rights due diligence and the consideration of biodiversity in new investment projects. The Board of Executive Directors also considers this information when making decisions with strategic relevance for the Group and monitors the implementation of strategic plans and target achievement. The CFO and the heads of Group Reporting & Performance Management, Corporate Audit and Corporate Compliance regularly report to the Audit Committee on sustainability-relevant topics. Moreover, the Supervisory Board is briefed by the Board of Executive Directors on the development of material sustainability topics on an ongoing basis.

In our stakeholder engagement we focus on cooperation. The Corporate Center unit Corporate Development is responsible for engagement with societal representatives, while Corporate Human Resources is the Corporate Center unit mainly in charge of the exchange with employees. Corporate Investor Relations is the Corporate Center unit tasked with communicating with shareholders. The aforementioned units report to the Chairman of the Board of Executive Directors. If our transition to climate neutrality were to result in structural changes or have other significant social impacts on employees, we would consult with employee representatives to find socially responsible solutions in accordance with existing participation rights. Together with other companies and the European CSR Europe network, we have worked on the topic of responsible social transition to climate neutrality (just transition). We have contributed to both the development of a European road map and an associated toolbox.

BASF is involved in relevant networks and initiatives. We have been a member of the UN Global Compact since its establishment in 2000. BASF consistently supports the Ten Principles of the UN Global Compact for responsible business conduct and the Sustainable Development Goals. We are active around the world in local Global Compact networks, in some cases in a leadership role. BASF is also a member of the World Business Council for Sustainable Development (WBCSD) and the econsense Forum for Sustainable Development of German Business. BASF participates in several multistakeholder and multisector initiatives. Our diverse commitments include the Chemie³ industry standard for more sustainable value creation, the Cobalt for Development project for improving working and living conditions in artisanal mining cooperatives in the Democratic Republic of Congo, the Global Battery Alliance for a more sustainable and circular battery value chain and the Responsible Lithium Partnership for the responsible use of natural resources in Salar de Atacama, Chile.

Representatives of BASF discuss key issues with independent, international experts in the confidential setting of our own advisory councils. These councils are active for an indefinite period. In this way, BASF aims to gain a better understanding of the impacts of business activities on the environment and society, as well as of risks and opportunities. The trustful exchange within the Human Rights Advisory Council helps us to appropriately fulfill our roles and responsibilities, particularly in challenging human rights situations. The advisory council comprises four independent international human rights experts and meets several times per year with representatives of Corporate Compliance, Corporate Sustainability and relevant experts from BASF, for example from procurement and the operating divisions. The Nature Advisory Council provides BASF with an independent perspective on our activities and dependencies in relation to nature and biodiversity topics and ecosystem services. The aim is to obtain constructive feedback and specific advice from external experts and to facilitate sound decisions in relation to operational projects as well as the further development of our strategic approach. At the end of 2025, it comprised five members from the fields of science, relevant value chains and multilateral organizations. The council meets several times a year with BASF leaders and experts. We discussed the findings from our double materiality assessment with both councils in 2025. For more information on how we utilize the councils and other formats in the context of affected communities, see S3 Affected Communities.

It is important for us to continue our dialog with civil society to maintain a meaningful understanding of public opinions on potentially controversial topics. In 2024, we established a new format for dialog with the Civil Society Forum. Here, we discuss sustainability topics with representatives of nongovernmental organizations and the trade union spectrum in a confidential setting. The aim is to explain the company’s activities in current and potential projects to stakeholders and to obtain critical feedback. The subsequent incorporation of that external feedback aims at finding feasible solutions for all stakeholders. The dialog format is spearheaded by the Corporate Sustainability unit and involves relevant experts from the operating divisions and from the Corporate Center and service units. During a visit by civil society organizations to the Ludwigshafen site in 2025, we had an opportunity to exchange ideas on the transformation of the chemical industry and mutually underline the need for constructive cooperation between industry, civil society and politics. We bear a particular responsibility toward the neighbors of our sites. We promote continuous dialog between residents and our site management and strengthen trust in our activities with community advisory panels. Our globally valid guidelines for community advisory panels are based on the grievance mechanism standards in the U.N. Guiding Principles on Business and Human Rights. Through its complementary societal engagement activities, BASF aims to strengthen the communities around its sites worldwide and have a long-term positive impact on the environment and society. BASF is focused on strengthening public health, promoting skills, e.g., for economic participation and employability, and on protecting natural resources. For case-by-case dialog with stakeholders, for example in relation to investments, we use the format of the ESG Council as an instrument where required. BASF establishes this dialog format for a limited period of time with the aim of engaging the relevant stakeholders, especially affected communities and vulnerable groups such as Indigenous peoples, as well as including the societal perspective in its decision-making process. We also consider the concerns of these affected communities, directly and indirectly, through representative experts and civil society organizations. In this regard, we adhere to our Group-wide policies on interactions with representatives of civil society.

An overview of the expectations of our most important stakeholders and the platforms we use to engage with them are summarized in the following:

Our political advocacy is conducted in accordance with transparent requirements and is based on our publicly stated positions. The same applies to our activities in associations. In our Industry Associations Review we have published – exemplary for the fields of energy and climate protection – a comparison of BASF positions and the positions of the most important associations of which we are a member, with explanations on our approach. BASF does not financially support political parties, for example through donations in cash or in kind. This is codified in a global requirement. In the United States, employees at BASF Corporation have exercised their right to establish a Political Action Committee (PAC). The BASF Corporation Employee PAC is an independent, federally registered employee association founded in 1998. It collects donations from employees for political purposes and independently decides how these are used, in accordance with U.S. law.

• More information on our requirements for responsible lobbying
• More information on the Industry Associations Review