Issues and Positions

BASF advocates across a broad range of issues which are related to our company. Our focus is on advocating for:

A global level playing field in energy and climate policies
Free and fair trade policy and market access
Evidenced-based decision making of regulatory approvals
Sustainable development
A research driven policy making and a society open for innovation

As part of our dialog we regularly contact and meet with government departments, members of parliament, NGOs and other stakeholders in many of the countries where we do business.

Alternative Feedstock

Our position on future carbon raw materials

Animal Testing

Animal testing is mandatory for the registration of chemicals and the authorization of plant protection products. Our goal is to replace animal experiments with animal-free alternative methods based on isolated human cells, tissues or computer models. Together with seven other partners from science and industry, we have therefore made an appeal to politicians and campaigned for the targeted promotion of alternative methods.

Our position on animal testing

Artificial Intelligence

At BASF, we understand artificial intelligence (AI) as the development of computer-based systems that can perform tasks that typically require human intelligence. With the AI Act, the European Commission wants to ensure that AI systems are safe on the EU market and comply with EU fundamental rights. At the same time, innovation and investment in ethical and lawful AI applications should be promoted.

Our Position on the EU AI Act

Battery Regulation

Proposed as part of the Circular Economy Action Plan, the new EU regulatory framework for batteries seeks to develop a circular, sustainable and safe European battery value chain that is able to compete with other global players on an equal footing. As a blueprint for future product-specific policies, the EU Battery Regulation seeks to govern all batteries placed on the EU market throughout their entire life cycle.

Our position on battery regulation

Circular Economy

The circular economy, also known as circularity, is a model of production and consumption that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. In this way, the life cycle of products, equipment and infrastructure is extended, and the creation of waste, pollution and carbon emissions is minimized. The circular economy is a central element of the European Green Deal.

Competitive Europe

The European Green Deal is the EU Commission’s response to environmental-related challenged we are facing globally. By creating chemistry for a sustainable future, our innovations are contributing to the European Union’s ambitions.

Data

Data is one of the core components of the Digital Economy, and an essential resource to secure the Green and Digital transitions. The Data Act establishes a horizontal framework for sharing non-personal data by introducing obligations giving the users access to the data they generate. It has the potential to reshape business relations by addressing the two main issues in the Data Economy: access to data and the switching of service providers.

Emission Trading Systems

Emission trading systems (ETS) and carbon pricing schemes have been introduced worldwide with the goal of mitigating climate change. The EU emissions trading scheme is a major pillar of EU climate policy that covers both the energy sector and industrial production. It aims to reduce greenhouse gas emissions at minimal cost to the economy by issuing a limited number of emission rights and subsequently trading them on the market. In some countries, the transport and building sector are under an ETS as well, e.g. in Germany.

Our position on emission trading systems

Energy Efficiency

Energy efficiency compares an output of performance, service, or goods with an input of energy, e.g. the energy needed to heat or cool a house by a certain temperature, or the electricity needed to produce a certain amount of a chemical product. Together with renewable energy, energy efficiency is regarded as an integral part of sustainable energy policy. In its Energy Efficiency 2020 report, the International Energy Agency (IEA) estimates that energy efficiency will deliver more than 40% of the reduction in energy-related greenhouse gas emissions over the next 20 years.

Our position on energy efficiency

The EU Chemicals Strategy

With the Green Deal the European Union strives to make Europe the first climate neutral continent by 2050 and overhaul its environmental laws. One pillar of the Green Deal is a zero pollution ambition for a toxic-free environment. In this spirit, the EU Commission wants to further strengthen Europe’s already sophisticated chemicals legislation and in 2020 published its Chemicals Strategy for Sustainability (CSS).

Global Climate Policy

The “Paris Agreement” was adopted by nearly 200 countries at the United Nations climate conference in 2015 and was ratified in November 2016. As the first ever legally binding global climate change agreement, it sets out a framework that aims to avoid climate change by limiting global warming. Countries voluntarily commit themselves to national targets in the form of nationally determined contributions (NDCs) that are subject to regular review. Developed countries will support developing countries financially to support climate action to reduce emissions and help them adapt to the impact of climate change.

Hydrogen

Hydrogen is an essential raw material for the chemical industry and becomes increasingly important as a new energy vector that could significantly contribute to reducing the carbon footprint of our society. Therefore, the European Union and many countries worldwide are working on hydrogen strategies.

Our position on hydrogen

Industrial Policy

The EU Industrial Strategy aims to help Europe’s industry leading the twin transition towards climate neutrality and digital leadership by driving the competitiveness and EU strategic autonomy at a time of moving geopolitical plates and increasing global competition.

Innovation

New, resource-efficient solutions and business models are needed to decouple growth from the consumption of finite resources and to transform towards a circular low-emission economy. Supplying a growing global population with food, energy, and clean water, making the best use of limited natural resources, and protecting our climate are among the greatest challenges of our time, and innovations play a pivotal role in addressing these.

Our position on innovation

Mandatory Due Diligence

The development of international supply chains has benefited developing countries but has also led to negative impacts in terms of human and labor rights as well as environmental damage. Several countries are therefore taking steps to draft due diligence legislation with the goal of ensuring that companies take greater responsibility for human rights in their supply chains.

Mass Balance

The mass balance approach is a chain-of-custody model that can be used to ensure traceability in complex supply chains and production processes where it is not possible to physically segregate materials. It is used by several established programs related to sustainable or responsible sourcing, including the chemical industry.

Renewable Raw Materials

The use of sustainably sourced renewable raw materials contributes to the EU Green Deal’s sustainability objectives on circularity and climate action as well as to reducing the European Union’s dependency on imported fossil resources. Thereby, the circular bioeconomy increases the resilience and competitiveness of the European industry and fosters innovation. A supportive policy framework is needed to accelerate the transition of the chemical industry: by providing reliable investment conditions, supporting the use of sustainable renewable raw materials and allowing industrial customers as well as consumers to make informed purchasing decisions.

Our position on Renewable Raw Materials

Revision of the Industrial Emissions Directive (IED)

As part of the “Zero Pollution Ambition”, the EU institutions revise the IED. This law regulates pollutant emissions from industrial plants and installations and affects the license to operate of most BASF plants. The result of this revision will determine the future competitiveness of the industry in the EU and the agility of the necessary transformation: finding the right balance between perfectioning the current status and preparing for new technologies.

Our position on revision of the Industrial Emissions Directive (IED)

Sustainable Finance

Sustainable finance refers to the process of taking due account of environmental, social and governance (ESG) considerations when making investment decisions, leading to increased longer-term investments into sustainable economic activities and projects. At EU level it aims at supporting the delivery on the objectives of the European Green Deal by channeling private investment into the industry’s transition as a complement to public money.

Our position on sustainable finance