BASF on the Capital Market

In many countries, we offer share purchase programs that turn our employees into BASF shareholders. In 2023, around 26,700 employees (2022: around 27,100) purchased BASF shares worth €68.1 million (2022: €92.8 million).

BASF has participated in the program established by the international organization CDP for reporting on data relevant to climate protection since 2004. CDP represents more than 740 investors with over $136 trillion in assets and more than 330 major organizations with $6.4 trillion in purchasing power. In February 2024, CDP once again awarded BASF Leadership status in the categories of climate protection, water management and forest protection for the 2023 business year. BASF achieved a rating of A- in each category. In the climate protection category, CDP assesses, among other things, the transparency of emissions reporting, the handling of opportunities and risks arising from climate change, the climate protection strategy and measures to reduce CO₂ emissions.

The CDP assessment for sustainable water management takes into account how transparently companies report on their water management activities and how they reduce risks such as water scarcity. BASF continues to implement its sustainable water management target at all relevant production sites. CDP also evaluates the extent to which product developments can contribute to sustainable water management for customers. BASF participated in the CDP’s “Forests” assessment for the fourth time in 2023. The assessment is based on detailed insights into the palm value chain and on activities that impact ecosystems and natural habitats.

MSCI ESG Research awarded BASF an A rating in 2023. The analysts highlighted BASF’s presence in clean technology markets and its clearly defined strategy to reduce CO₂ emissions and water consumption.

BASF again achieved Prime status (B-) in the ISS ESG rating developed by Institutional Shareholder Services, placing it in the top 10% of the companies assessed.

In Morningstar Sustainalytics’¹ ESG Risk Ratings, BASF belongs to the best category for “diversified chemicals” with a medium ESG risk and was recognized for its risk management, for example, in the areas of CO₂ emissions, wastewater and waste, and occupational health and safety.

BASF is a founding member of the United Nations Global Compact. This means that we consistently support the U.N. Global Compact and its 10 principles of responsible business conduct and the Sustainable Development Goals.
 

1 Morningstar Sustainalytics provides institutional investors and companies with ESG and corporate governance research, ratings and analytics.

After BASF’s share price reached an annual high of €54.04 on February 3, 2023, it initially declined over the year. During the last two months of 2023, the stock market was supported by expectations of future interest rate cuts. BASF shares recovered in line with the overall market and closed the year at €48.78. Share performance in the course of the year was mainly attributable to the weakening of the economy, continued high inflation, higher interest rates and increasing geopolitical tensions; these led to significant uncertainty on the global markets and dampened demand in many sectors.

Assuming that dividends were reinvested, BASF’s share performance increased by 12.9% in 2023. The benchmark indexes of the German and European stock markets – the DAX 40 and the EURO STOXX 50 – rose by 20.3% and 22.2% over the same period, respectively. The global industry index MSCI World Chemicals gained 14.3%.

Long-term performance of BASF shares compared with indexes

Average annual increase with dividends reinvested

Change in value of an investment in BASF shares in 2023

With dividends reinvested; indexed

American depositary receipts (ADRs) allow U.S. institutional and retail investors to trade and own non-U.S. companies directly through the U.S. equity markets. BASF has a sponsored level 1 program, which is traded on OTC-QX, the platform for international quality companies on OTC markets. BASF’s ADRs (Symbol: BASFY) are now included in International PremierQX, the highest OTC market tier.

More information on ADRs

Around 25 financial analysts regularly publish studies on BASF. The latest analyst recommendations for our shares as well as the average target share price ascribed to BASF by analysts can be found online at basf.com/analystestimate.

1 Based on year-end share price

2 Free cash flow per share at year-end divided by share price at year-end

For 2023, BASF paid a dividend of €3.40 per share and paid out €3.0 billion to its shareholders. Based on the year-end share price for 2023, BASF shares offer a high dividend yield of 7.0%. BASF is part of the DivDAX share index, which contains the 15 companies with the highest dividend yield in the DAX 40.

Dividend per share

€ per share

BASF ended its share buyback program on February 24, 2023, earlier than planned. This was done in line with the company’s priorities for the use of cash and in view of the profound changes in the global economy over the course of 2022. From January 11, 2022, until February 23, 2023, BASF repurchased 25,956,530 own shares; this corresponds to 2.8% of the share capital at the time the program was announced. The purchase price for these own shares was around €1.4 billion. Originally, the share buyback program had been planned to reach a volume of up to €3 billion and to be completed by the end of December 2023 at the latest.

Regular and transparent communication with the capital market is key to increasing long-term value. We engage with institutional investors and rating agencies in numerous one-on-one meetings, as well as at roadshows and conferences worldwide, and give private investors insights into BASF at informational events. In 2023, we increasingly offered physical formats again in addition to virtual formats such as video and conference calls.

As part of an Investor Update in the presence of analysts and investors in Ludwigshafen, Germany, in December 2023, Dr. Martin Brudermüller and Dr. Dirk Elvermann announced a more strongly differentiated approach to steering BASF operations and the new financial key performance indicators in the reporting and steering for the BASF Group, which will be used from 2024 onward. Furthermore, the progress made toward the corporate targets for Scope 1 and 2 emissions was presented and the targets for Scope 3.1 emissions were announced for the first time.¹

Analysts and investors have again confirmed the quality of our financial market communications. At the Investors’ Darling awards ceremony, Manager Magazin presented BASF with special prizes for sustainability communications and digital communications. In addition, NetFed, a consultancy specializing in digital communications, awarded the BASF Investor Relations website second place in the IR Benchmark 2023.

1 Other greenhouse gases are converted into CO₂ equivalents in accordance with the Greenhouse Gas Protocol.