23. Risks from Litigation and Claims
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:
Since 2019, numerous lawsuits filed by individuals, corporations, municipalities, tribal governments, and/or states claiming various injuries, including personal injury, property and/or natural resource damages for alleged contamination through per-fluorinated and polyfluorinated alkyl compounds (“PFAS”) have been pending against, among others, members of BASF Group, primarily BASF Corporation (a U.S. subsidiary of BASF) in the United States and, since 2024, also in Canada.
Defendants are primarily manufacturers/distributors of aqueous film-forming firefighting foam (“AFFF”) and their suppliers; some cases also involve allegations relating to alleged PFAS from non-AFFF sources (such as paper mills or site operations). BASF is primarily named as a defendant as the legal successor to Ciba, which until 2003 produced and distributed surfactants for the firefighting foam industry (trade name “Lodyne”).
Overall, members of BASF Group are defendants in over 8,700 of such lawsuits as of February 2026 and are defending against these claims. Most of the lawsuits are pending in a multi-district litigation (MDL) pending in federal court in South Carolina; other cases are pending in federal and state courts in Alabama, Maine, Washington, and Wisconsin. At this time, BASF cannot predict the outcome of resolving these matters or what potential actions may be taken by regulatory agencies. An adverse outcome could be material to BASF’s financial results.
On May 20, 2024, BASF Corporation agreed to a class settlement with U.S. public water systems that detected PFAS in their drinking water sources, which they allege to be associated with the use of AFFF products. BASF Corporation agreed to contribute €305 million ($316.5 million) in total (€301 million ($312.5 million) to resolve the PFAS claims, plus €4 million ($4 million) toward settlement administration costs). BASF Corporation paid the administration cost in July 2024, and the amount to resolve the PFAS claims in March 2025. BASF Corporation has insurance through a number of insurers and is pursuing recovery of its settlement payment under those policies. The settlement releases these claims against BASF Corporation, Ciba, and other related corporate entities. It does not constitute an admission of liability or wrongdoing by BASF Corporation or Ciba. BASF and its relevant affiliates also intend to continue to defend itself in all remaining PFAS matters.
Furthermore, BASF SE and its affiliated companies are regularly involved as defendants or other parties in legal and regulatory proceedings. To our current knowledge, none of these proceedings will have a material impact on the economic situation of BASF.