Climate protection is very important to us and is an important part of our corporate strategy. BASF has reaffirmed its ambitious climate targets: Compared with the 2018 baseline, we want to reduce greenhouse gas emissions from our production sites and our energy purchases by 25% by 2030 – despite our growth plans and the construction of a new Verbund site in southern China. Excluding the effects of the targeted growth, this means cutting CO₂ emissions in half in the current business by the end of this decade. To achieve this, we have adopted comprehensive carbon management.

In connection with our climate protection target, Group-wide CO₂ emissions are anchored as a most important nonfinancial key performance indicator in the BASF Group’s steering and compensation systems. This gives them even more importance in the operational and strategic steering of the BASF Group.

We consistently align our actions with our climate protection targets, based on a comprehensive analysis of our emissions. We report on greenhouse gas emissions in accordance with the Greenhouse Gas Protocol as well as the sector-specific standard for the chemical industry. Sharp increases in our greenhouse gas emissions, due for example to the startup of large-scale plants, are progressively offset. Steering also includes assessing investments and acquisitions with regard to their impact on our climate protection targets We only consider external offsetting measures as a temporary stop-gap if our activities do not make the desired contribution to reducing emissions.

Since 2004, we have participated in the international non-profit organization CDP’s program for reporting on data relevant to climate protection. BASF achieved a score of A– in CDP’s rating for 2022, maintaining its Leadership status. Companies on the Leadership level are distinguished by factors such as the completeness and transparency of their reporting. They also pursue comprehensive approaches in managing the opportunities and risks associated with climate change as well as strategies to achieve company-wide emission reduction goals.

BASF does not report PFC and NF3, since there are no significant emissions.

Source

BASF Report 2022: Energy and Climate Protection, p. 135

News release: BASF confirms ambitious climate targets and takes steps to reduce product-related emissions

Keynote of Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, at BASF Investor Update on March 28th, 2022: Taking the next step in climate protection – from targets to delivery

* Will be updated with the issuance of the CDP Climate Report 2023.

GHG Emissions (SASB Code: RT-CH-110a.2)

Accounting metric

Discussion of long-term and short-term strategy or plan to manage scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Information

We want to achieve net zero emissions by 2050. By 2030, we want to reduce our greenhouse gas emissions worldwide by 25 percent compared with 2018. In 2022, the emissions reported amounted to 18.4 million metric tons of CO₂ equivalents (2021: 20.2 million metric tons of CO₂ equivalents). This was mainly driven by the significant reduction in production volumes and the temporary shutdown of emission-intensive plants. We were also able to reduce emissions due to measures to increase energy and process efficiency.

We are intensely pursuing our climate protection targets and plan to invest up to €4 billion by 2030. Our global activities to reduce greenhouse gas emissions and demand for fossil fuel are bundled in our carbon management, which comprises five strategic levers: We are increasingly meeting our energy needs from renewable sources (grey-to-green lever). We are increasingly relying on electrical steam generation (power-to-steam lever). We are developing completely new carbon-free and low-carbon processes and technologies for climate-smart chemistry (new technologies lever). We are increasingly replacing fossil resources with alternative raw materials (bio-based feedstocks lever). And our operational excellence activities continually improve the energy and process efficiency of our plants (continuous opex lever).

Furthermore, we have established organizational structures to implement our climate protection targets and carbon management activities with even greater focus and speed: The Environmental Protection, Health, Safety and Quality unit in the Corporate Center develops Group-wide guidelines and requirements for collecting emissions and energy data and for energy management. The Corporate Strategy & Sustainability unit develops and tracks the BASF Group’s climate targets and strategic levers for achieving them based on our corporate carbon footprint. The Net Zero Accelerator unit, which was established in early 2022, focuses on the accelerated implementation of existing and new cross-division projects to reduce emissions. The emphasis is on carbon-free and low-carbon production technologies, the circular economy and renewable energies. Both Corporate Strategy & Sustainability and Net Zero Accelerator report to the Chairman of the Board of Executive Directors. This integrates climate protection-relevant aspects into strategic decision-making processes and core business activities. In parallel, our operating divisions are working on divisional-specific projects to reduce emissions. They are supported here by the global service units.

Source

BASF Report 2022: In Focus: Climate Change, p. 27

BASF Report 2022: Energy and Climate Protection, p. 135 - 136

More Information on Carbon Management: Our Carbon Management

Comment/Additional Information

As an energy-intensive company, we take responsibility for the efficient use of energy and global climate protection. We are committed to the Paris Climate Agreement. Our products and solutions enable a reduction in greenhouse gas emissions in many areas. At the same time, we are working to significantly reduce our own carbon footprint.

BASF Report 2022: Energy and climate protection, p. 135

Air Quality (SASB Code: RT-CH-120a.1)

Accounting metric

Air emissions of the following pollutants:
(1) Total nitrogen oxides (NO_X; excluding N₂O),
(2) Total sulfur oxides (SO_X),
(3) Volatile organic compounds (VOCs)
(4) Hazardous air pollutants (HAPs)
(5) Carbon monoxide (CO)

Information

(1) NO_X: 9,326 metric tons

(2) SO_X: 1,553 metric tons

(3) VOCs: 4,621 metric tons non-methane volatile organic compounds (NMVOC)

(4) HAPs: included in VOCs

(5) CO: 3,833 metric tons

Source

BASF Report 2022: In Focus: Emissions to Air, Waste and Remediation, p. 143

Comment/Additional Information

BASF records substances that can have a negative impact on health and the environment. These substances are assigned to VOCs and published as totals. BASF records those substances where emissions are expected in the process and which must be measured at the request of the authorities due to their hazard potential.

Energy Management (SASB Code: RT-CH-130a.1)

Accounting metric

(1) Total energy consumed

(2) Percentage grid electricity

(3) Percentage renewable energy

(4) Total self-generated energy

Information

(1) (52,881,000 MWh energy consumption + 4,653,000 MWh conversion fuel consumption from LHV to HHV) * 3.6 = 207.1 million gigajoules

(2) grid electricity import for own consumption / total energy consumption: 6,485,000 MWh / 57,534,000 MWh = 11.3%

(3) total renewable energy / total energy consumption: 2,284,000 MWh / 57,534,000 MWh = 4.0%

(4) Self-generated steam (consumed): 46,626,000 t = 34,969,000 MWh (conversion factor 0.75 MWh/t steam)

Total self-generated energy (consumed): 7,734,000 MWh electricity + 34,969,000 MWh steam = 42,703,000 MWh à 153.7 million gigajoules

Source

BASF Report 2022: Energy and Climate Protection, p. 137

Internal database

Comment/Additional Information

As part of our Carbon Management Program, we aim to increase the proportion of renewable energy in the electricity purchased for our production sites. In total, over 108 sites worldwide (2021: 88) were already partially or fully powered by renewable energy at the end of 2022.

To generate our own steam and power, we mainly use natural gas (77.4%) and substitute fuels (17.5%). The latter are residues from chemical production plants that cannot be used in the BASF Verbund. In 2022, we covered more than 54% of our electricity demand with our own gas and steam turbines in highly efficient combined heat and power plants. Compared with separate methods of generating steam and electricity, we saved 12.0 million MWh of fossil fuels and avoided 2.4 million metric tons of carbon emissions in 2022. In 2022, internally generated power in the BASF Group had a carbon footprint of around 0.25 metric tons of CO₂ per MWh of electricity and was below the national grid factor at most BASF sites.

BASF Report 2022: Energy and Climate Protection, p. 137 – 138

More information about Carbon Management: Our Carbon Management

Water & Wastewater Management (SASB Code: RT-CH-140a.1)

Accounting metric

(1) Total water withdrawn

(2) Total water consumed, percentage of each in regions with high or extremely high baseline water stress

Information

(1) 1,590 million cubic meters

Breakdown (million cubic meters/year):

Surface water/freshwater: 1,260

Brackish water/seawater: 212

Groundwater: 91

Drinking water: 19

Reusable wastewater from third parties: 3

Water from raw materials: 5

1% of total water abstraction in water stress areas

(2) 6,705 million cubic meters (9% production, 82% cooling), 17% of which in water stress areas

Source

BASF Report 2022: In Focus: Water, p. 145, graphic “Water in the BASF Group 2022”

Comment/Additional Information

Definition water stress areas: all areas in which more than 40% of available water is used by industry, household and agriculture.

Water & Wastewater Management (SASB Code: RT-CH-140a.2)

Accounting metric

Number of incidents of non-compliance associated with water quality permits, standards, and regulations

Information

3 incidents (fixed)

Source

Internal Database

Water & Wastewater Management (SASB Code: RT-CH-140a.3)

Accounting metric

Description of water management risks and discussion of strategies and practices to mitigate those risks

Information

The responsible use of water as a resource is a core element of our Responsible Care Management System and our risk management, as well as an important part of our commitment to the United Nations’ Sustainable Development Goals (SDGs). This is also reflected in our position paper on water protection, which we published in 2021.

Introducing and implementing sustainable water management has been a cornerstone of our strategy for many years now. Our focus here is on our Verbund sites and on production sites in water stress areas. The aim is to protect water as a resource, to use it as efficiently as possible through recirculation, and to continuously reduce wastewater and emissions. We consider the quantitative, qualitative and social aspects of water use. In the final assessment of the CDP Water Report 2022, BASF again achieved leadership status with a top rating of “A.”

We pursue our goal by applying the European Water Stewardship standard, which rests on four principles: sustainable water abstraction, maintaining good water quality, preserving conservation areas, and ensuring continuous improvement processes.

BASF has various procedures for identifying and assessing water-related risks (direct operations, supply chain and in other stages of the value chain). Examples: WRI Aqueduct, COSO Enterprise Risk Management Framework, Alliance for Water Stewardship Standard, European Water Stewardship (EWS) Standard, Environmental Impact Assessment, Life Cycle Assessment.

As part of sustainable water management, our sites regularly assess the water situation in the catchment area. This raises awareness of potential risks and impacts for the population such as water scarcity. Based on the assessments conducted until the end of 2022, we did not identify any activities with a significant impact on water availability and quality at any site.

Source

BASF Report 2022: In Focus: Water, p. 144 - 145

CDP Water Report 2022, p. 51

Comment/Additional Information

Our goal is to introduce sustainable water management at our Verbund sites and at all production sites in water stress areas by 2030, covering 89% of BASF’s total water abstraction. We achieved 61.6% of our target in 2022 (2021: 53.5%). Sustainable water management was introduced at seven further sites in 2022.

BASF Report 2022: In Focus: Water, p. 145

More examples for contextual issues, which are considered in water-related risk assessments of BASF: CDP Water Report 2022, p. 51 - 53

Hazardous Waste Management (SASB Code: RT-CH-150a.1)

Accounting metric

Amount of hazardous waste generated; percentage recycled

Information

Hazardous waste:

0.87 million tons of waste for disposal

0.63 million tons recovered waste

Total: 1.50 million tons

Source

BASF Report 2022: In Focus: Emissions to Air, Waste and Remediation, p. 143

Comment/Additional Information

Instead of the term “physical recovery,” BASF uses the term “recycled.”

Percentage of hazardous waste generated that was incinerated: 75.1%

0.49 million tons (with energy recovery) + 0.64 million tons (without energy recovery)

= 1.13 million tons

Source: internal database