Notes

The circular economy is a regenerative system in which economic growth is decoupled from the consumption of finite resources. The circular economy is based on the fundamental principles of preventing waste and pollution, using products and materials for as long as possible and regenerating natural systems at the same time.

Formulation describes the combination of one or more active substances with excipients like emulsifiers, stabilizers and other inactive components in order to improve the applicability and effectiveness of various products, such as cosmetics, pharmaceuticals, agricultural chemicals, paints and coatings.

In order to enable our customers’ green transformation, BASF systematically develops and offers solutions that minimize negative environmental and social impacts while maximizing positive outcomes. This involves our efforts to reduce carbon emissions, conserving resources, and using renewable energy and feedstocks. According to the three dimensions of sustainable development, we place ecological and economic balance as well as social responsibility at the forefront of our actions.

In this report, we use the word policy or requirement to describe internal frameworks that set out the fundamental guidelines of our company. At BASF, policies are set by the Board of Executive Directors and define principles relating to a specific topic. Separate requirements define the processes for implementing a policy.

Renewable raw materials are materials made from renewable resources that can be replenished by natural or artificial processes within a reasonable time frame. These include both bio-based feedstocks from biomass and bio-attributed materials, to which raw materials from biomass are attributed via certified processes such as mass balance.

A steam cracker is a plant in which steam is used to “crack” naphtha (petroleum) or natural gas. The resulting petrochemicals are the raw materials used to produce most of BASF’s products.

Traits are commercial plant characteristics, such as an inherent resistance to certain herbicides or an inherent defense against certain insects.

A value chain describes the successive steps in a production process: from raw materials through various intermediate steps, such as transportation and production, to the finished product.