Topic-Specific Standards

3-1

Our Sustainability Concept: Our strategic approach

3-2

Our Sustainability Concept: Our strategic approach

A new material topic is business ethics. Resource efficiency and waste are covered by the topics of circular economy and resource efficiency, waste and plastic waste. Human rights now explicitly include labor rights; climate and energy is represented by the two topics of climate protection and adaptation to climate change. Employment and diversity now include inclusion and equality in the workplace.

https://www.basf.com/global/en/who-we-are/sustainability/management-goals-and-dialog/management/topics.html

3-3

Management of material topics

See topic-specific standards on material topics

201-1

Sustainability Along the Value Chain: Employees: Competition for talent
Personnel expenses
Table: BASF Group Personnel expenses

Graphic: Value added 2022

201-2

Forecast: Opportunities and Risks: Operational opportunities and risks
Opportunities and Risks: Strategic opportunities and risks: Procurement and supply chain
Sustainability
Sustainability Along the Value Chain: Energy and Climate Protection: Strategy and Governance

We report comprehensively on the results in the CPD climate change questionnaire.

201-3

The BASF Group’s Business Year: Net Assets
Financial Position
Employees: BASF Group Personnel expenses
Table: BASF Group Personnel expenses
Consolidated Financial Statements: Independent Auditor’s report
Consolidated Financial Statements: Balance Sheet BASF Group
Consolidated Financial Statements: Notes: Other comprehensive income: Accounting policies
Consolidated Financial Statements: Notes: Provisions for pensions and similar obligations

201-4

The total amount of government grants cannot be determined on a global level; consequently, BASF refers to those government grants that were decisive for business decisions. In September 2022, BASF, SABIC and Linde started construction of the world’s first demonstration plant for large-scale electrically heated steam cracker furnaces. By using electricity from renewable sources instead of natural gas, the new technology has the potential to reduce CO₂ emissions from one of the most energy-intensive production processes in the chemical industry by at least 90% compared to technologies commonly used today.

To support the development of the novel furnace technology, the project has received a grant from the German Federal Ministry for Economic Affairs and Climate Action under its “Decarbonization in Industry” funding program. The program is supporting energy-intensive industries in Germany in their efforts to achieve carbon neutrality.

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

The indicator is not industry-relevant. As an employer in the chemical industry, BASF typically recruits highly qualified employees. Their compensation is based on objective criteria worldwide, especially the employee’s position, their individual performance and BASF's success.

202-2

Proportion of senior management hired from the local community

The internationalization of its senior executives is an important factor for BASF as a global company, which is why we recruit across different countries and sites.

203-1

Our Strategy: Our strategic action areas
Sustainability Along the Value Chain: Societal Engagement

Graphic: Value added 2022

203-2

Our Sustainability Concept: Our strategic approach
Measuring sustainable value added
Sustainability Along the Value Chain: Raw Materials: Mineral raw materials

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Supplier management: Global procurement
Raw Materials

204-1

Sustainability Along the Value Chain: Supplier management: Global procurement

BASF does not have any specific guidelines for local procurement: In order to ensure local supply security, raw materials must be purchased where they are available around the globe. Local providers of technical goods and services often have competitive advantages due to their location.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Compliance

205-1

Compliance: Monitoring adherence to our compliance principles

Due to BASF's matrix structure, the number of the audited business sites is not a steering-relevant indicator. Group companies, which include several sites and business areas, are audited as part of compliance audits. Cross-business topics are also audited (e.g. donations and sponsorship). Our corporate audits focus on compliance issues. More than 25% of all audits performed under the risk-based annual audit plan are compliance audits. In addition, ad hoc audits are performed if there are grounds for suspicion. This regular auditing is an essential part of ensuring compliance worldwide in our business processes and identifying weaknesses or non-compliant behavior to derive appropriate measures.

Various compliance risks, e.g. risks related to corruption, are audited as part of our compliance audits. Which compliance risks are the focus of an audit is determined based on materiality, which can also be derived from the risk assessments of each country and business area. Consequently, BASF does not report on the number of audits solely related to corruption.

205-2

Compliance: Compliance Program and Code of Conduct
Monitoring adherence to our compliance principles

All employees receive training on our Code of Conduct upon joining the company. They are obligated to attend refresher training every three years.

Target group-specific training is also offered. For instance, all newly appointed senior executives receive scenario-based training on various relevant compliance risks. In addition, all leaders and employees not covered by collective agreements confirm their adherence to our Code of Conduct every year. Governance body members are familiar with our Code of Conduct.

The entire Board of Executive Directors of BASF SE is contractually obligated to adhere to our Code of Conduct.

Contractors of BASF are also informed about our requirements.

All important business partners, especially our suppliers and sales partners, are informed about our compliance principles and must adhere to these. Based on the global guideline "Business Partner Due Diligence" introduced in 2015, all of our sales partners are audited for potential compliance risks.

205-3

Compliance: Monitoring adherence to our compliance principles

Compliance and responsible, forward-looking conduct are of central significance for BASF. According to our risk-based evaluation, we do not consider corruption a significant compliance risk. If individual cases of corruption are uncovered, these generally relate to passive corruption to the detriment of our company. Consequently, BASF does not report on cases of corruption unless they are considered material. There were no material cases of corruption in 2022.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Compliance

206-1

Consolidated Financial Statements: Notes: Risks from litigation and claims

Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Supplier management: Global procurement
Raw Materials

301-1

Sustainability Along the Value Chain: Raw Materials

Due to the heterogeneity of our procurement portfolio, such an indicator (weight or volume) does not represent steering-relevant information.

301-2

Material topics in focus: Circular Economy and Resource Efficiency
Sustainability Along the Value Chain: Raw Materials: Renewable resources

We rely on our Verbund concept to make the most efficient use of raw materials in our own processes: Intelligently linking and steering our plants enables by-products from one facility to be used as feedstocks elsewhere and recirculated. This saves raw materials and energy. At the same time, the Verbund offers many opportunities to use renewable and recycled raw materials. We want to better leverage this potential and make it more measurable going forward. We have set ourselves two targets in our circular economy program: BASF has committed to converting 250,000 metric tons of recycled and waste-based raw materials to new products annually from 2025. By 2030, we want to increase our sales of solutions for the circular economy to €17 billion – double the 2020 figure. A percentage share of recycled feedstocks is not a relevant control indicator for us because this depends primarily on the market availability of these materials.

301-3

Reclaimed products and their packaging materials

This indicator is not relevant to BASF’s product portfolio since most products are sold in bulk. The relevant legal regulations apply to the packaging used. In addition to the dual system for returning packaging for domestic goods, in Germany, for example, we organize the return and recycling of individual components of industrial and commercial packaging (plastics, steel, etc.) by recycling companies. We aim to offer our customers efficient disposal methods that are carried out professionally and responsibly for all packaging used. This is why we provide information about e.g. the companies that are available for returning and recycling industrial packaging.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Sustainability Along the Value Chain: Energy and Climate Protection
Material topics in focus: Climate Change

302-1

Sustainability Along the Value Chain: Energy and Climate Protection: Energy supply

Each site worldwide reports on environmental protection, safety, security and health protection in accordance with the reporting requirements defined in the Responsible Care Management System.

The section on energy and climate protection in the report shows the energy used by central energy supply including purchased final energy (electricity and steam). Total energy consumption is calculated as the sum of this figure and direct primary energy use in production.

The use of fuels from renewable sources (biomass) does not currently represent a material share of total fuel consumption and is therefore not disclosed separately. However, the resulting CO₂ emissions are reported separately in the greenhouse gas footprint.

Cooling consumption is not presented separately. This is largely generated internally. The required energy demand is included in the figures for the Group. Cooling water demand is taken into account in water use.

Energy sold is included in the energy balance. We do not consider a separate disclosure to be necessary.

302-2

Sustainability Along the Value Chain: Energy and Climate Protection: Global targets
Energy efficiency and specific greenhouse gas emissions
Corporate carbon footprint
Product carbon footprints

Scope 3 emissions are described on the basis of the carbon footprint, which covers total energy consumption.

302-3

Sustainability Along the Value Chain: Energy and Climate Protection: Table: Additional indicators for energy and climate protection in BASF operations

302-4

Sustainability Along the Value Chain: Energy and Climate Protection: Strategy and Governance
Global targets
Energy efficiency and specific greenhouse gas emissions

302-5

Sustainability Along the Value Chain: Energy and Climate Protection: Strategy and Governance
Global targets
Energy efficiency and specific greenhouse gas emissions
Corporate carbon footprint
Product carbon footprints

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Water

303-1 2018

Sustainability Along the Value Chain: Our Management Systems: Responsible Care Management System
Water: Strategy and Governance
Global target and measures
Graphic: Water in the BASF Group 2022

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.

303-2 2018

Sustainability Along the Value Chain: Our Management Systems: Responsible Care Management System
Water: Strategy and Governance
Global target and measures
Graphic: Water in the BASF Group 2022

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.

303-3 2018

Material topics in focus: Water: Graphic: Water in the BASF Group 2022
Water balance

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.
The breakdown of water abstraction by quality is based on the following assumptions: drinking water contains ≤1,000 mg/L TDS, treated wastewater and produced water contain >1,000 mg/L TDS. Water abstraction in water stress areas represents a small percentage of the BASF Group’s entire water abstraction (approx. 1%); consequently, a detailed breakdown by source and quality is not considered necessary.

303-4 2018

Material topics in focus: Water: Graphic: Water in the BASF Group 2022
Water balance
Emissions to water

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System.
In the breakdown of wastewater by quality, we distinguish between wastewater from cooling processes with no product contact and wastewater from production. This breakdown better reflects wastewater types in the chemical industry than a breakdown by TDS content.
Our wastewater can contain different substances from site to site, depending on the type of production. Requirements for individual substances are defined by local authorities. If discharge limits are exceeded, this is documented locally. We have defined heavy metals, nutrients and COD as substances of concern at global level and report on emissions of these. 

303-5 2018

Sustainability Along the Value Chain: Our Management Systems: Responsible Care Management System
Material topics in focus: Water: Graphic: Water in the BASF Group 2022
Water balance

Standards, methods and assumptions are defined in the reporting requirements in the Responsible Care Management System and in the methodology paper.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Biodiversity
Sustainability Along the Value Chain: Energy and Climate Protection: Strategy and Governance
Global targets
Material topics in focus: Circular Economy and Resource Efficiency
Material topics in focus: Water: Global target and measures
Supplier management: Global procurement

304-1

Material topics in focus: Biodiversity

Proximity to protected areas is addressed on a location-by-location basis using the REHSA database.

304-2

Material topics in focus: Biodiversity

The impact of agricultural products, for example, is addressed as part of product development and portfolio assessment using the Sustainable Solution Steering method.

304-3

Sustainability Along the Value Chain: Raw Materials: Renewable resources
Material topics in focus: Biodiversity: Responsibility to our sites and production
Our Sustainability Concept: Identifying and assessing sustainability topics
Measuring sustainable value added
Business Review by Segment: Agricultural Solutions

304-4

IUCN Red List species and national conservation list species with habitats in areas affected by operations

In the case of changes to the site portfolio, e.g. due to investments or acquisitions, we review the potential impacts as part of the standardized evaluation process. BASF also undertakes projects to protect individual species (skylark, monarch butterfly). We are testing the STAR tool for endangered species.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Sustainability Along the Value Chain: Energy and Climate Protection
Material topics in focus: Emissions to Air, Waste and Remediation

305-1

About this Report: Data
External audit
Sustainability Along the Value Chain: Energy and Climate Protection: Strategy and Governance
Corporate carbon footprint: Table: BASF Group's greenhouse gas emissions according to the Greenhouse Gas Protocol

305-2

About this Report: Data
External audit
Sustainability Along the Value Chain: Energy and Climate Protection: Strategy and Governance
Corporate carbon footprint: Table: BASF Group's greenhouse gas emissions according to the Greenhouse Gas Protocol

305-3

Sustainability Along the Value Chain: Energy and Climate Protection: Graphic: Scope 3 emissions along the BASF value chain in 2022

305-4

Sustainability Along the Value Chain: Energy and Climate Protection: Table: Additional indicators for energy and climate protection in BASF operations

305-5

Sustainability Along the Value Chain: Energy and Climate Protection: Graphic: Schematic overview: Development of the BASF Group’s greenhouse gas emissions (Scope 1 and 2)
Global targets
Energy supply
Energy efficiency and specific greenhouse gas emissions
Corporate carbon footprint
Product carbon footprints

305-6

Material topics in focus: Emissions to Air, Waste and Remediation

Calculation based on the substances described in the reporting requirements (based on the Montreal Protocol).

305-7

Material topics in focus: Emissions to Air, Waste and Remediation: Table: Emissions to air

Calculation based on the methods described in the reporting requirements and includes CO, NO_X, SO_X, NMVOCs, PM, NH₃ and other inorganic substances.
HAPs are a category of chemical compounds used in the United States as the basis for reporting requirements to monitoring agencies. Since BASF is always guided by individual national reporting requirements, the individual substances on the HAP list are not recorded globally in a standardized manner. As organic compounds, HAPs are included in NMVOCs.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Plastic waste
Material topics in focus: Circular Economy and Resource Efficiency
Material topics in focus: Emissions to Air, Waste and Remediation: Strategy and Governance
Waste

306-1

Material topics in focus: Emissions to Air, Waste and Remediation: Strategy and Governance

306-2

Material topics in focus: Emissions to Air, Waste and Remediation: Strategy and Governance

306-3 (2016)

Transportation safety: Transportation incidents

Emission events in production are recorded and included in the process safety incidents metric reported in the chapter on production.

306-3 (2020)

Material topics in focus: Emissions to Air, Waste and Remediation: Waste
Table: Waste generation in the BASF Group

306-4

Material topics in focus: Emissions to Air, Waste and Remediation: Waste
Table: Waste generation in the BASF Group

306-5

Material topics in focus: Emissions to Air, Waste and Remediation: Waste
Table: Waste generation in the BASF Group

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Supplier management: Global targets
What we expect from our suppliers
Selection and evaluation of our suppliers
Audit results

308-1

Sustainability Along the Value Chain: Supplier Management: What we expect from our suppliers
Selection and evaluation of our suppliers
Audit results

The requirements for our suppliers are defined in our Supplier Code of Conduct. Our suppliers must commit to complying with these requirements in the areas of environmental protection, human rights, labor and social standards, as well as fighting discrimination and corruption. In 2022, approximately 5400 suppliers of raw materials, technical goods, services and investment goods committed to these values in our registration portal.

308-2

Sustainability Along the Value Chain: Supplier Management: What we expect from our suppliers
Selection and evaluation of our suppliers
Audit results
Raw Materials: Renewable resources

One business relationship with suppliers was terminated due to severe deficiencies in the areas of environmental protection, safety, security and health protection, and social matters. 397 suppliers were asked for improvements in the areas of environmental protection, safety and security, and health protection, representing approximately 38% of all suppliers audited in 2022.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Employees

401-1

Sustainability Along the Value Chain: Employees: Competition for talent
Table: BASF Group new hires in 2022

We report the total number of new hires and the early turnover rate (within the first three years), both by region since these are our internal steering-relevant indicators. New employees are hired based on qualification and suitability; age is irrelevant.

401-2

Sustainability Along the Value Chain: Employees: Compensation and benefits

We hire few temporary employees worldwide. All types of benefits that we provide in Germany are available to both full-time and part-time employees.

401-3

Sustainability Along the Value Chain: Employees: Balancing personal and professional life

Our employees can take parental leave in line with the relevant legal entitlements. In addition, BASF has defined a Group-wide standard for maternity protection to protect the health of expectant and nursing mothers and to prevent harm to them and their babies. This includes at least 14 weeks of maternity leave (no less than 6 weeks after delivery). Compliance with the internal maternity leave policy is evaluated and monitored as part of a global risk-based management process. In some countries, we thus provide a standard of maternity protection that goes beyond local statutory regulations.
We provide a wide range of offerings to help employees balance personal and professional life (e.g. flexible working hours, part-time employment, "LuMit" and childcare), especially at our Verbund site in Ludwigshafen, Germany. These are important measures to promote the family role of women and men.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Employees

402-1

Sustainability Along the Value Chain: Employees: Mutual respect and open dialog

Compliance with national laws is a cornerstone of our business; in many cases, we exceed statutory requirements. We also adhere to the applicable notice periods based on national laws or local collective agreements.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Our Management Systems: Responsible Care Management System
Material topics in focus: Occupational Safety, Process Safety and Health Protection

403-1 2018

Sustainability Along the Value Chain: Our Management Systems: Responsible Care Management System

Our Responsible Care Management System contains occupational safety and health protection elements, which cover all employees and temporary employees of BASF and its contractors. Furthermore, 55% of all employees (BASF, temporary, contractors) are additionally covered by a local management system audited in accordance with ISO 45001/OHSAS 18001.

403-2 2018

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Occupational safety
Compliance: Monitoring adherence to our compliance principles

We encourage and promote a culture of safety where everyone is mindful of hazards and helps to resolve and avoid them by doing the right thing. A systematic process has been established for all routine tasks and workplaces to identify and assess potential hazards, to derive appropriate safety measures, and to ensure that these are implemented and effective. Separate hazard assessments are used to manage non-routine tasks as part of a separate approval process.
Incidents are investigated according to a risk-based approach, which is likewise uniformly regulated internally. Designated officers within the organization ensure that all causes are identified and that measures are implemented in full and in a timely manner. Significant incidents are shared globally by Corporate EHS to prevent them from happening again.
All processes are reviewed according to statutory requirements on a regular and ad hoc basis.
Our policies and requirements are continuously updated. They apply to our employees and third parties with whom we interact at our sites.

403-3 2018

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Health protection

We offer our employees a comprehensive range of medical services, from preventive occupational medicine and emergency care to health promotion. We do not offer this service to our contractors. BASF’s corporate health management has been established for all Group companies worldwide and serves to improve and promote the health and productivity of our employees. Worldwide standards for occupational health are specified in a binding Group-wide directive that is implemented by a global network of experts. We regularly review our performance, for example with occupational health audits. In addition, we have established an expanded indicator for our global health management: the Health Performance Index (HPI).

403-4 2018

Sustainability Along the Value Chain: Our Management Systems: Responsible Care Management System

We offer our employees around the world a large amount of information on various health topics in German and English. At all sites, employees can consult medical professionals as needed on health matters in the workplace. Appropriate committees on health and safety topics are established at the local level. BASF’s and leasing staff at all sites are involved in developing task-related risk assessments and establishing operating procedures. Contractors are involved in work authorization procedures to reduce interaction risks.

403-5 2018

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Occupational safety

In addition to the legally required briefings, BASF requires new employees and contractors to complete additional, compulsory health and 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.We train BASF employees and contractors/site partners as first aiders. First aid is one of five core elements of the Health Performance Index (HPI), which BASF uses to measure its performance in occupational medicine and health protection every year. All employees receive training before starting work and at regular intervals, and are tested to ensure that this training was understood. Training needs are based on an employee’s individual field of work and tasks, as well as the statutory requirements.

403-6 2018

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Health protection

BASF employees and managers have access to various offerings to maintain or improve their health through the global health promotion program. The program comprises three elements:

• BASF Health Check (regular individual offering for our employees)
• Global Health Campaign with new prevention topics every yea
• Local health promotion offerings at BASF sites

403-7 2018

Sustainability Along the Value Chain: Supplier management
Material topics in focus: Occupational Safety, Process Safety and Health Protection: Occupational safety

In general, BASF takes a preventative approach to occupational health and safety risks. This approach is based on the elements of the Responsible Care Management System and is likewise used by our contract manufacturers, and regularly audited by us. The safety and environmental performance of suppliers and contractors are considered during the procurement process.

403-8 2018

Sustainability Along the Value Chain: Our Management Systems: Responsible Care Management System

The occupational health and safety elements of our Responsible Care Management System cover all BASF, temporary and contractors’ employees. The coverage by certified health and safety management system is explained in GRI 403-1.

403-9 2018

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Occupational safety

Our aim is to avoid lost-time injuries. We investigate all incidents with major accident potential worldwide to determine the main causes, independent of the outcome of the actual incident. Using a wide range of data enables us to better identify necessary measures for continuous improvement and to assess their implementation/effectiveness. In general, BASF does not differentiate between employees (BASF, leasing or contractors), as there is no differentiation in our company health and safety management system. Further details of most events occurring are not considered relevant. For BASF, chemical-related incidents are considered most specific to our own operations and are therefore communicated in our report.

403-10 2018

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Health protection

Our aim is to avoid work-related illness completely through appropriate prevention.
Regular site inspections or workplace visits are the basis for the overall occupational health assessment. Qualified risk assessments are the basis for evaluations and improvements to be derived. Occupational medical expertise is already incorporated into the planning of technical and organizational innovations in the company. The results of occupational medical examinations regarding possible health hazards from the workplace are analyzed.
Relevant findings from examinations and site inspections are taken into account when revising the health risk assessment.
Chemical, biological and physical hazards (including noise, vibration, radiation, exposure to heat and cold at the workplace), ergonomics and psychosocial hazards are assessed and controlled in regular operations.
According to the hierarchy of control, the following measures are part of our health risk management:

• Elimination or reduction of health hazards (substitution)


• Implementation or improvement of technical control measures


• Optimization of work organization (including minimization of frequency and duration of activities)


• Availability and proper use of personal protective equipment (PPE)

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Employees: Learning and development

404-1

Average hours of training per year per employee

In 2022, each employee spent an average of 1.7 days on further training.

The relevant indicators are further training days, not hours. Training needs are determined as part of individual employee development, independent of age or gender. The uniform BASF Group-wide system for further development applies to all employees.

404-2

Sustainability Along the Value Chain: Employees: What we expect from our leaders
Learning and development
Material topics in focus: Inclusion of diversity

404-3

The BASF Group has a uniform system in place for conducting employee dialogs that applies to all employees, regardless of gender and employee type.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Inclusion of diversity
Corporate Governance Report: Competence profile, diversity concept and succession planning for the Board of Executive Directors

405-1

Sustainability Along the Value Chain: Employees: Graphic: BASF Group employee age structure
Table: Leaders and specialists in the BASF Group
Material topics in focus: Inclusion of diversity

Promoting and valuing diversity across all hierarchical levels is an integral part of our strategy and is also embedded in our corporate values so that all employees are part of our team. Therefore, a different indicator for minorities is not a steering-relevant parameter for us.

405-2

Ratio of basic salary and remuneration of women to men

Representative evaluations for BASF SE have shown that there are no systematic differences between compensation of female and male employees in comparable roles and with comparable qualifications. There is no global evaluation.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards

406-1

Material topics in focus: Responsibility for Human Rights, Labor and Social Standards: International labor and social standards
Compliance: Monitoring adherence to our compliance principles

Number of complaints and tip-offs received in 2022 on human rights: 151 (of which resolved in the reporting period: 135)

Of these, pertaining to discrimination: 46 (of which resolved in the reporting period: 39)

In all substantiated cases, countermeasures were taken on a case-by-case basis in line with the applicable legal and internal standards.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards

407-1

Sustainability Along the Value Chain: Supplier Management: What we expect from our suppliers
Audit results
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards: International labor and social standards

We did not identify any deficiencies in the areas of freedom of association and collective bargaining with the suppliers audited in 2022. Our monitoring here covers our direct suppliers (Tier 1). High-risk countries are those countries with high ESG risks.

For employees, see the description of the management process under Material topics in focus: Responsibility for Human Rights, Labor and Social Standards.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards

408-1

Sustainability Along the Value Chain: Supplier management: Audit results
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards: International labor and social standards

Again in 2022, none of our audits identified any instances of forced labor, child labor or dangerous work and overtime performed by persons under 18.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards

409-1

Sustainability Along the Value Chain: Supplier management: Audit results
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards: International labor and social standards

Again in 2022, none of our audits identified any instances of forced labor, child labor or dangerous work and overtime performed by persons under 18.

410-1

Material topics in focus: Occupational Safety, Process Safety and Health Protection: Emergency Response, Corporate and Cyber Security

In accordance with our company guidelines, training on human rights policies is mandatory for both BASF and contractors’ employees at all BASF sites.

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards

411-1

Incidents of violations involving rights of indigenous peoples

Our internal grievance mechanisms did not identify any (potential) violation of rights of indigenous communities. We operate in countries with indigenous peoples, both in our supply chain and in our own operations. We take this into account in our investment activities.

413-1

Our Sustainability Concept: Our strategic approach
Our stakeholder management
Societal Engagement
Sustainability Along the Value Chain: Stakeholder Engagement
Material topics in focus: Responsibility for Human Rights, Labor and Social Standards: International labor and social standards
Raw Materials: Renewable resources
Mineral raw materials
Material topics in focus: Occupational Safety, Process Safety and Health Protection: Process safety
Emergency response, Corporate and Cyber Security

As a general rule, assessments are performed for all Group companies (as for labor and social standards) or as part of standardized evaluation processes for all material investment processes. As part of the piloting of the VBA methodology, BASF currently does not publish any Value to Society results.

At all BASF sites, employees and external persons have access to various contact options that they can use (anonymously) as part of our Compliance Program. Approximately 90% of our production sites also have formalized occupational health and safety committees.

413-2

Graphic: How We Create Value
Our Sustainability Concept: Measuring sustainable value added
Sustainability Along the Value Chain: Raw Materials: Renewable resources
Mineral raw materials
Material topics in focus: Occupational Safety, Process Safety and Health Protection: Process safety

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Supplier management: Global targets
What we expect from our suppliers
Selection and evaluation of our suppliers
Audit results

414-1

Sustainability Along the Value Chain: Supplier Management: What we expect from our suppliers
Selection and evaluation of our suppliers
Audit results

The requirements for our suppliers are defined in our Supplier Code of Conduct. Our suppliers must commit to complying with these requirements in the areas of environmental protection, human rights, labor and social standards, as well as fighting discrimination and corruption. In 2022, approximately 5,400 suppliers of raw materials, technical goods, services and investment goods committed to these values in our registration portal.

414-2

Sustainability Along the Value Chain: Supplier Management: What we expect from our suppliers
Selection and evaluation of our suppliers
Audit results
Raw Materials: Renewable resources
Mineral raw materials

One business relationship with suppliers was terminated due to severe deficiencies in the areas of environmental protection, safety, security and health protection, and social matters. 397 suppliers were asked for improvements in the areas of environmental protection, safety and security, and health protection, representing approximately 38% of all suppliers audited in 2022.

We did not identify any cases of deficiencies in the areas of freedom of association and collective bargaining at our suppliers.

289 suppliers were asked for improvements regarding social topics, representing around 28% of all suppliers audited in 2022.

415-1

Our Sustainability Concept: Our stakeholder management

BASF does not support political parties financially or through donations in kind. Grants are subject to a maximum limit and comprehensive documentation requirements.
Focus areas of political campaigning and lobbying: https://www.basf.com/global/en/who-we-are/politics.html
Our Code of Conduct: https://www.basf.com/global/en/who-we-are/organization/management/code-of-conduct.html

3-3

Sustainability Along the Value Chain: Stakeholder Engagement
Product Safety

416-1

Our Sustainability Concept: Our strategic approach
Measuring sustainable value added

As a producing company, we focus on the evaluation of our products. Services are not relevant for a producing company.

416-2

Consolidated Financial Statements: Notes: Risks from litigation and claims

Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements.

417-1

Sustainability Along the Value Chain: Product Safety: Strategy and governance
Global chemicals regulations

International and regional chemical regulations such as the Globally Harmonized System (GHS) or the CLP Regulation, to which BASF is subject, involve comprehensive labeling obligations. These include information on the safe handling and disposal of products.

417-2

Consolidated Financial Statements: Notes: Risks from litigation and claims

Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements.

417-3

Incidents of non-compliance concerning marketing communications

Not a key indicator as BASF mainly operates in the B2B sector. Any risks from litigation or claims are disclosed in the Notes to the Consolidated Financial Statements.

418-1

Sustainability Along the Value Chain: Emergency response, Corporate and Cyber Security
Our Management Systems: Quality management system
Compliance: Monitoring adherence to our compliance principles

As part of the implementation of its corporate strategy, BASF established a central governance, risk management and compliance unit at the beginning of 2020, which is responsible for topics such as cybersecurity. At an implementation level, BASF has an ISO/IEC 27001-certified information security management system (ISMS) steered by the Chief Information Security Officer (CISO), who is operationally responsible for cybersecurity Group-wide. With respect to theft and loss of customer data: BASF has established risk management processes in place, combined with physical security and the implementation of technical and organizational controls on end devices and applications (e.g. encryption, data leakage prevention). No incidents within the meaning of GRI 418-1 were identified in 2022 (2021: 0).