BASF Report 2025

This content fulfills the Disclosure Requirements of the European Sustainability Reporting Standards (ESRS). For an overview, please see the ESRS Index.

How We Create Value

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:

The following overview shows how we create value for our stakeholders.

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Business model

Our corporate purpose

We create chemistry for a sustainable future

Strategic levers

Our values

  • creative
  • open
  • responsible
  • entrepreneurial

Segments

Core businesses

  • Chemicals
  • Materials
  • Industrial Solutions
  • Nutrition & Care

Standalone businesses

  • Surface Technologies
  • Agricultural Solutions

Our corporate purpose

We create chemistry for a sustainable future

Strategic levers

Our values

  • creative
  • open
  • responsible
  • entrepreneurial

Segments

Core businesses

  • Chemicals
  • Materials
  • Industrial Solutions
  • Nutrition & Care

Standalone businesses

  • Surface Technologies
  • Agricultural Solutions

Our ambition

We want to be the preferred chemical company to enable our customers’ green transformation.

Business model

Inputs1

Financial

Financial

Our aim is to increase profitability and the ability to generate cash, optimize our cost of capital and limit financial risks.

Innovations

Innovations

We develop innovative and more sustainable solutions with our customers and suppliers in order to enter new markets and further increase our productivity.

Production

Production

Safety, quality and reliability as well as environmental protectionare the key to our excellence in production.

Environment

Environment

We use renewable resources, among other things, to manufacture products and solutions with high value added for our customers.

Employees

Employees

Everything we do is based on the expertise, knowledge and engagement of our employees.

Partnerships

Partnerships

Trust-based relationships are crucial to our license to operate and our reputation.

Outcomes7

Economic

Economic

Selected relevant external impact factors8

  • Customer demand and requirements
  • Investment readiness
  • Capital market trends
  • State of the economy, competitive conditions, investment climate

Selected impacts of our business activities8

  • Growth, progress and value creation for the state, customers, investors and employees
  • Our customers’ competitiveness and innovative strength
  • Digital transformation of the industry
  • Attractive dividend and share buyback payments to shareholders
  • Market development through more climate-smart products

We address positive and negative impacts through:

  • Corporate strategy
  • Portfolio management
  • Cost management, cost of capital optimization and efficient capital allocation
  • Differentiated Steering

Environmental

Environmental

Selected relevant external impact factors8

  • Climate change
  • Energy transformation
  • Availability of/access to renewable resources
  • Climate-related legislation
  • Regulations on product safety
  • Sustainability targets of our customers

Selected impacts of our business activities8

  • Contribution to climate protection/climate change adaptation
  • Innovation as a lever for climate protection
  • Contribution to the circular economy
  • More environmentally friendly and safer products
  • Greenhouse gas emissions
  • Emissions to air and water
  • Land use
  • Resource consumption and nonrecyclable waste
  • Potential misuse or spillage of products

We address positive and negative impacts through:

  • Climate protection and circular economy initiatives
  • Water and energy management
  • Actions to protect biodiversity
  • Responsible Care Management

Social

Selected relevant external impact factors8

  • Demand for more sustainable products, willingness to pay
  • Labor, environmental and social standards
  • Stakeholder trust
  • Interest of qualified personnel and leaders
  • Demographic change

Selected impacts of our business activities8

  • Taxes and competitive wages and salaries
  • Attractive jobs
  • Integration, help to overcome social challenges
  • Global compliance systems and codes of conduct
  • Procurement of raw materials with risk of violation of, for example, social and environmental standards
  • Health and occupational safety risks
  • Restructuring measures such as personnel adjustments

We address positive and negative impacts through:

  • Supplier management
  • Sustainability projects in the supply chains
  • Compliance Program and Code of Conduct
  • Employee training programs
  • Performance management system

Impact

In providing our customers with solutions to enable their green transformation, we want to grow profitably and create value.

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1 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. In accordance with IFRS® Accounting Standards, the discontinued coatings business is not included in the key figure R&D expenses. See also General Disclosures.

2 The sustainability-related key figures shown in this graphic are – unlike the financial key figures shown – not part of the statutory audit but are part of a separate audit with limited assurance.

3 The discontinued coatings business is not included in the following key figures: EBITDA before special items, patents, sales of innovations, products evaluated with TripleS, collaborations with universities and research institutes.

4 In 2025, around €2 billion in dividends for the 2024 business year was paid out to the shareholders of BASF SE and shares were repurchased for €355 million.

5 This is voluntary, unaudited information, which was critically read by the auditor.

6 The definition of the relevant portfolio and further information on TripleS can be found under General Disclosures.

7 Outcomes shows examples of impacts on our business and impacts that our activities may have on others, the environment and our business environment as well as theassociated measures we take.

8 The results of our double materiality assessment are included in the presentation of external factors and impacts of our business activities. These are not shown in full here. A comprehensive explanation of the impacts, risks and opportunities identified as part of our double materiality assessment can be found under Double Materiality Assessment.

Double materiality
Double materiality as defined by the European Sustainability Reporting Standards (ESRS) is a concept that is applied in the materiality assessment. The principle of double materiality looks at sustainability aspects from two perspectives: 1. Impact materiality, which determines the actual and potential positive and negative impacts of business activities on various sustainability topics. 2. Financial materiality, which considers the opportunities and risks of sustainability topics for a company’s financial position.

(Consolidated) Sustainability Statement

Overview of (Consolidated) Sustainability Statement

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