Supplier management

As a global enterprise, we have a responsibility to meticulously manage our supply chains. BASF aims to improve its supply chains sustainably and exceed customer expectations through its industry collaborations and digitalization strategies.

BASF Corporate Commitment.

We source responsibly.

Sustainable procurement

BASF is committed to improving sustainability in the overall supply chain of the chemical industry by having suppliers adhere to the internationally recognized environmental, social and governance (ESG) standards and regulations.

We focus on the potential to reduce upstream, raw materials-related carbon emissions, thus contributing to our new raw materials-related climate protection target defined in 2023. We continued our Supplier CO₂ Management Program which was launched in 2021. We aim to increase the transparency and reduce the carbon footprint of our value chain together with our suppliers. By 2030, BASF aims to reduce its specific Scope 3.1 emissions¹by 15% compared to 2022 across the portfolio from 1.58 to 1.34 kilograms of CO2 per kilogram of raw material bought.

BASF’s Supplier Code of Conduct is based on internationally recognized guidelines which include compliance with human rights, anti-discrimination, and anticorruption policies, and protecting the environment, etc. In 2023, BASF’s Supplier Code of Conduct has been expanded to new topics such as people's livelihoods and prohibition of unequal treatment in employment. Our existing suppliers have been informed of these changes. In 2023, over 2,700 new suppliers in Asia Pacific region were committed to our Supplier Code of Conduct.

Scope 3.1, raw materials excluding battery materials, excluding services and technical goods, excluding greenhouse gas emissions from BASF trading business.

^{BASF partnered with logistics service provider to use an electric vehicle truck for transportation between Cellasto® tollers and warehouses in Shanghai.}

Green and sustainable supply chains

In the supply chain and logistics, BASF is piloting the adoption of renewable energy technologies as part of its commitment to tackling climate change. Among various initiatives there is a pilot for using electric vehicles (EVs) for domestic transportation. The EVs result in lower level of greenhouse gas emissions compared to conventional diesel trucks, catalyzing cleaner air and a reduced carbon footprint in the logistics sector.

EV trucks also bring about a fundamental shift in reducing environmental impact without compromising on operational efficiency and incurring additional cost. The adoption of EV trucks demonstrates BASF’s sustainability commitments.