Report - COP Prototype

2022 Communication on Progress

BASF SE

Published date

May 31, 2022

No. of questions

Supplemental files

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

Optional comment

The above mentioned statements of topics are reinforced by our annual report.

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Please refer to our Code of Conduct: https://www.basf.com/global/en/who-we-are/organization/management/code-of-conduct.html

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Important laws and corportate policies that govern the behaviour of all BASF employees are summarized in the BASF Code of Conduct: https://www.basf.com/global/en/who-we-are/organization/management/code-of-conduct.html

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Our Human Rights Advisory Council comprises external human rights specialists and internal experts that advice the senior management.

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

6.1. During the assessment of risk, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

7.1. During the due diligence process, which business relationships are reviewed?

	A few suppliers or business relationships [approximately less than 25 %]	Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]	Most suppliers / relevant business relationships [approx. 51 - 99 %]	All suppliers / relevant business relationships outside the supply chain
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

Optional comment

More than 50 external hotlines worldwide that both, employees and the public can use anonymously to report potential violations of laws or company guidelines. Each concern is documented according to specific criteria, properly investigated and answered as quickly as possible.

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

Optional comment

It is communicated to all employees, but not in every local language as we are active in almost every contry in the world, when it comes to the number of languages available, please, refer to annual report 2021, p. 104.

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Optional comment

CO2-neutral growth is currently one out of three strategic targets in long-term incentive pay.

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	6
Male (%)	66.66
Female (%)	33.33
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	0
Above 50 years old (%)	100
From minority or vulnerable groups (%)	0
Executive (%)	100
Independent (%)	0

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

Please, refer to: https://report.basf.com/2021/en/financial-statements/audit/sustainability-performance-information.html

Reasonable assurance for minority of metrics

https://report.basf.com/2021/en/financial-statements/audit/sustainability-performance-information.html

Reasonable assurance for majority of metrics

Other (Please provide additional information)

Optional comment

The info in this questionnaire is based on our annual report which is assured by a third party, please, refer to the annual report 2021, p. 5f.

Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Freedom of association and the effective recognition of the right to collective bargaining
Child labour
Forced labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)
Freedom of expression
Access to culture
Access to water and sanitation
Digital security / privacy
Rights of women and/or girls
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Other
Optional comment
We would also like to add checks “freedom of association”, “rights to indigenous people”, “free, prior, and informed consent”, but system does not accept it.
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
1. First creating awareness globally in 2021 (message from the CEO, global awareness video, interview with CCO on critical topics), now engagement with all business units on Human Rights in 2022 in addition, open dialogue and more trainings also target-group specific ones, to get the support of the whole organization 2. Analyzing, challenging and upgrading all processes protecting human rights (sustainable procurement, ILSS, EHS, etc.) (as preparation of the go-live of the German Supply Chain DD Act) 3. Collaboration and engagement with stakeholders and in initiatives in higher risk areas (as e.g., GBI, RSPO, Project Pragati, C4D, project WISH) 4. Participation in the year of the international year of the elimination of child labour (joint pledge via C4D, and GBA)

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
2019
Forced labour
2019
Child labour
2019
Non-discrimination in respect of employment and occupation
2019
Occupational safety and health
2019
Working conditions (wages, working hours)
2019

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

All labour rights policies in place are aligned with international labour standards and formulated in BASF Group's position on human rights, which has been approved by the Board of Executive Directors. We do not only apply those policies to our own operations, but also expect our business partners to comply with internationally recognized human rights standards and to replicate them further along the value chain with their subsequent partners. For more information, for example on our Human Rights Advisory Council, please refer to our BASF Report 2021.

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

We have suppliers with a high potential sustainability risk evaluated by third parties, either through sustainability evaluations or on-site audits. The list of suppliers to be assessed is updated every year. Sustainability evaluations and on-site audits are mainly conducted according to the TfS framework. A total of 86 raw material supplier sites were audited on sustainability standards on our behalf in 2021. For more information on the selection and evaluation of our suppliers, please refer to our BASF Report 2021.

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

n addition to the legally required briefings, BASF requires new employees and contractors to complete compulsory safety training, as well as regular training on the safe handling of chemicals and the correct use of personal protective equipment for employees at our production sites. Regarding our procuremIn addition, employees with procurement responsibility receive ongoing trainings in sustainability-oriented supplier management and responsible procurement. In 2021, 250 BASF employees received such training.

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

We deploy a broad variety of performance indicators that help us assess our progress in preventing/mitigating the risks/impacts associated with the labour rights issues displayed. These include (but are not limited to) our targets regarding responsible procurement, as well as employee engagement and diversity and employee health. For more details, please refer to our BASF Report 2021.

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)

Optional comment

BASF does not disclose the share of employees covered under collective bargaining agreements. Due to a risk-based approach to the management process implemented in 2021, reporting of data will resume in the next 1-2 years.

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)

Optional comment

BASF does not disclose this figure.

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	25.6
Non-executive board	33.33

Optional comment

The Supervisory Board of BASF comprises 12 members, of which 4 are women.

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)
BASF does not disclose this figure.

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury	0.3

Optional comment

per 200,000 working hours. By 2025, our goal is to reduce our lost-time injury rate per 200,000 working hours to less or equal to 0.1.

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate	0.3

Optional comment

process safety incidents per 200,000 working hours. By 2025, our goal is to reduce our world-wide process safety incidents rate per 200,000 working hours to less than or equal to 0.1.

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.
Forced labour
Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.
Child labour
Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.
Non-discrimination in respect of employment and occupation
Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.
Occupational safety and health
Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.
Working conditions (wages, working hours)
Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.

Optional comment

Only general answers possible: We foster an open feedback culture, where anybody can speak up if something does not feel right. We offer a worldwide operational-level complaints mechanism. Critical issues, concerns and complaints are always heard. We take on critical questions and listen to all grievances, addressing all concerns that are brought forward to us. We strive for appropriate remediation by the responsible party and do not tolerate retaliation against anyone who brings forward a grievance in good faith. In cases that have come to our attention, we have taken appropriate remedial action.

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

BASF's internal guideline and policy are based on international social and labour standards (ILS). Our management process is risk-based and incloses internal reporting. The challenge is: If conflicts with national law arise, we will strive to act in accordance with our values and internationally recognized principles without violating the law of the country concerned. As part of the management process, we regularly follow up on and document the results of the comparison between national law and our guideline, as well as measures to implement the guideline. This is our central due diligence system.

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
2021
Water
2021
Oceans
2020
Forests / Biodiversity / Land Use
2020
Air Pollution
2007
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
2007
Energy & Resource Use
2021

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Oceans are part of BASF's water
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

Our new Net Zero Accelerator unit, which was launched at the beginning of 2022, will focus on accelerating the implementation of existing and new cross-company projects to reduce emissions. To this end, we also launched our Supplier CO2 Management Program in 2021. We further worked with different organizations and initiatives to harmonize the methodological approaches used to calculate Scope 3 emissions. In addition, in 2021 we concluded further long-term supply agreements for green power and have converted existing agreements to green power and have acquired renewable energy certificates in a number of regions. For more examples of our actions taken in different environmental areas, please refer to the BASF Report 2021.

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

	Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)
Climate Action	Net zero carbon emissions by 2050, 25% carbon emission reduction untl 2030, compared to 2018 (externally verified)
Energy & Resource Use	Usage of 250,000 t of recycled/waste-based raw materials in our productionfrom 2025 onwards; €17bn in sales generated by solutions for circular economy until 2030
Water	Introduction of sustainable water management at all Verbund sites and at all production sites in water stress areas by 2030
Forests / Biodiversity / Land Use
Air Pollution	Avoidance of 550 metric tons of nitrous oxide/year (145,000 t of CO2 equiv.)
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Oceans

4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

	Progress is reviewed against goals annually or more frequently	Progress is reported internally to the most senior level	Progress is reported externally	Other (Please provide additional information)
Climate Action
Energy & Resource Use
Water
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Oceans

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Optional comment

Actions/Remedies specific to individual sites of the BASF Group.

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

Scope 2 Emissions

Full

None

Emissions (tCO2e)

Scope 3 Emissions

Full

Partial

None

Emissions (tCO2e)

Optional comment

Scope 1: 18668 metric tons CO2 equivalents Scope 2: 2464 metric tons CO2 equivalents Scope 3: 101 metric tons CO2 equivalents

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

1.7

Unknown

Not applicable (Please provide additional information)

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Optional comment

For further information, refer to the BASF Report 2021, please.

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

Unknown

Optional comment

To generate our own steam and power, we mainly use natural gas (80.3%) and substitute fuels (17.4%). These are residues from chemical production plants that cannot be reused in the BASF Verbund. We cover more than 58% of our electricity demand with our own gas and steam turbines in highly efficient combined heat and power plants.

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

30.7

Accelerator products make a substantial sustainability contribution in the value chain. Their share of revenue is audited on reasonable assurance level. For more information, please refer to the BASF Report 2021 (-> We drive sustainable solutions).

Unknown

Not applicable (Please provide additional information)

Sector-specific: Water

12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

Water withdrawal (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	1.695
Groundwater:	100
Surface water:	1.308
Rainwater:
259,000 megalitres stem from brackish water/sea water, 20,000 megalitres from drinking water and 5,000 megalitres from raw materials. 78.5% of our water demand is covered by reuse.
Wastewater:	3
Percentage of water withdrawn in regions with high or extremely high water stress (%)	1

Water consumption (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	72000
Groundwater:
Consumption is mainly attributable to the evaporation of water in recirculating cooling systems. However, due to the variety of water sources used, it is not possible to measure how much water is consumed from each source.
Surface water:
Consumption is mainly attributable to the evaporation of water in recirculating cooling systems. However, due to the variety of water sources used, it is not possible to measure how much water is consumed from each source.
Rainwater:
Consumption is mainly attributable to the evaporation of water in recirculating cooling systems. However, due to the variety of water sources used, it is not possible to measure how much water is consumed from each source.
Wastewater:
Consumption is mainly attributable to the evaporation of water in recirculating cooling systems. However, due to the variety of water sources used, it is not possible to measure how much water is consumed from each source.
Percentage of water consumed in regions with high or extremely high water stress (%)	16

Optional comment

Consumption is mainly attributable to the evaporation of water in recirculating cooling systems. However, due to the variety of water sources used, it is not possible to measure how much water is consumed from each source.

13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

Water intensity of products (cubic meter/$):

0.02

Unknown

Not applicable (Please provide additional information)

Optional comment

0,02 cubic meter/$ (BASF reports in €, so we applied the market value of 31th Dec 2021.

Sector-specific: Air pollution

17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

	Emissions (tCO2e)	Unknown	Not applicable (Please provide additional information)
NOx	11.45
SOx	1.864
Volatile Organic Compounds (VOC)	4.988
Hazardous air pollutants (HAP)
Included in VOC
Particulate matter (PM10)	973
Persistent organic pollutants (POP)	0
Other (please specify in text box)	8.058

Optional comment

POP: 0.01kg Carbon Monoxide: 3,951 metric tons; dust: 2,154 metric tons; ammonia and other inorganic substances: 1,951 metric tons; heavy metals: 2 metric tons.

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

2470000

Unknown

Not applicable (Please provide additional information)

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

Unknown

Not applicable (Please provide additional information)

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Optional comment

This metric is not relevant to BASF's product portfolio, since most products are sold bulk, where plastic packaging is rarely used.

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

Continuous improvement actions specific to individual sites of the BASF Group: Occupational EHS inspections Share safety targets Communication on key EHS activities Share best practice of safety action Communication on key EHS activities Annual all employees EHS trainings EHS information on site related EHS topics for contractors

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

Compliance audits are conducted on an annual basis and our Code of Conduct was revised in 2020.

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Optional comment

Policies and recommendations for employees are laid down in the Code of Conduct. E.g., BASF expects of its employees to only accept gifts which have a moderae value and are understood to be simply business courtesies and to pay attention to the image that can be created due to the external circumstances and the overall situation. Also, BASF encourages its employees to speak up in case of doubt and to contact their supervisor or compliance team.

Prevention

3. Who receives training on anti-corruption and integrity?

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

Optional comment

Procurement and Sales employees receice extra trainings.

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Internal compliance audits take place at BASF on an annual basis.

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	0
There were no material cases of corruption in 2021.
Confirmed during the current year, and related to this year	0
There were no material cases of corruption in 2021.

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Not applicable/no incidents in the reporting period

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

Also, outside the company, BASF supports the fight against corruption. As a member of Transparency International Deutschland and the Partnering Against Corruption Initiative (PACI) of the World Economic Forum, we assist in the implementation of these organization's objectives.

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

We perform a systematic risk assessment to identify the risk of compliance violations, including corruption risks. These are conducted at divisional, regional and country levels, with an additional focus on group companies in 2021. Since 2021, we elaborated a new online compliance training for all employees which addresses anti-corruption principles. The regular compliance audits performed by the corporate audit department are another source of information for the systematic identification of risks. One key element in the prevention of compliance violations is compulsory training and workshops held as classroom or online courses. All employees are required within a prescribed time frame to take part in basic compliance training, refresher courses and special tutorials dealing with antitrust legislation or trade control regulations, e.g.. In total, more than 53,000 participants worldwide received over 79,000 hours of compliance training in 2021.