Our products and solutions contribute to reducing greenhouse gas emissions in many areas. At the same time, we are working to significantly reduce our CO₂ emissions along the value chain. This creates opportunities for our business activities: Thanks to our transformation toward climate neutrality, we can increasingly offer our customers products with a reduced product carbon footprint (PCF). However, CO₂ emissions from our production, our energy procurement and our upstream and downstream value chain have a negative impact on the climate. Climate protection is therefore very important to us and is an important part of our corporate strategy.

We are pursuing ambitious climate protection targets. In addition to the targets for reducing our emissions from production processes (Scope 1) and the purchase of energy (Scope 2), we set ourselves a target for reducing our specific raw materials-related emissions (Scope 3.1) in the reporting year. Based on increased transparency and data availability, we will be able to steer our upstream emissions, which make up the majority of our total emissions along the value chain, in a more targeted manner in the future. We have extended our long-term target of achieving net-zero greenhouse gas emissions by 2050 and are striving toward this target for Scope 3.1 in addition to Scope 1 and 2.

Group-wide Scope 1 and Scope 2 emissions have been anchored in the BASF Group’s steering and compensation systems as the most important nonfinancial key performance indicator since 2020, giving them even more weight.

We are committed to reporting transparently on our climate protection targets and progress, as well as on the impact of climate change on BASF. In this context, we support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We also participate in the program established by the international nonprofit organization CDP for reporting on data relevant to climate protection and have done so since 2004. BASF achieved a score of A- in CDP’s 2023 climate change questionnaire, again attaining Leadership status. The target includes greenhouse gases according to the Greenhouse Gas Protocol, which are converted into CO₂ equivalents (CO₂e). Companies at the leadership level are distinguished by factors such as the completeness and transparency of their reporting.

BASF does not report PFC, SF6 and NF3, since there are no significant emissions.

Source

BASF Report 2023: Energy and Climate Protection, pp. 102-103

* Will be updated with the issuance of the CDP Climate Report 2024.

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

By adjusting our organizational structures, we have created the conditions for implementing our climate protection targets and the measures that contribute to them in a focused and swift manner: The Corporate Center’s Environmental Protection, Health, Safety and Quality (EHSQ) unit develops Group-wide requirements and guidelines for collecting emissions and energy data and for energy management. The Corporate Strategy & Sustainability unit develops the BASF Group’s climate targets and strategic levers for achieving them. The driving force behind the implementation is the Net Zero Accelerator unit, which focuses on the accelerated implementation of existing and new cross-divisional projects to reduce emissions.

Climate scenarios are incorporated into the strategies of our business units. We continuously analyze short and long-term opportunities and risks for our business operations arising in connection with the topics of energy and climate protection as part of our opportunity and risk management.

By reducing our own CO₂ emissions and those upstream in the value chain, we contribute to our customers achieving their climate protection targets. To increase transparency and target our CO₂ reduction measures to those areas where they bring the greatest added value, we continuously determine the Product Carbon Footprint for around 45,000 sales products. In addition, we offer our customers solutions that help prevent greenhouse gas emissions and improve energy and resource efficiency.

Source

BASF Report 2023: Energy and Climate Protection, pp. 102- 103

More Information on Carbon Management: Our Carbon Management

Comment/Additional Information

To further reduce CO₂ emissions, we are also developing completely new technologies for emission-free and low-emission production. They will need large volumes of electricity from renewable sources in order to realize their full potential. The main focus here is on basic chemicals, which are often still emission-intensive to produce. This applies, for example, to steam crackers, which use high levels of energy to break down crude petroleum into olefins and aromatics. We made significant progress here in 2023 with the construction of a demonstration plant for electrically heated steam cracker furnaces.

BASF Report 2023: Energy and Climate Protection, p. 106

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), and
(4) Hazardous air pollutants (HAPs)
(5) Carbon monoxide (CO)

Information

(1) NO_X: 8,433 metric tons

(2) SO_X: 1,350 metric tons

(3) VOCs: 4,433 metric tons non-methane volatile organic compounds (NMVOC)

(4) HAPs: included in VOCs

(5) CO: 3,450 metric tons

Source

BASF Report 2023: Emissions to Air, Waste and Remediation, p. 111

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) (50,052,000 MWh energy consumption + 4,482,000 MWh conversion fuel consumption to GCV) * 3.6 = 196.32 million gigajoules

(2) grid electricity import for own consumption / total energy consumption: 6,320,000 MWh / 54,533,000 MWh = 11.6%

(3) total renewable energy / total energy consumption: 2,621,000 MWh / 54,533,000 MWh = 4.8%

(4) Self-generated steam: 47,044,000 t = 35,283,000 MWh (conversion factor 0.75)

Total self-generated energy: 6,673,000 MWh electricity + 35,283,000 MWh steam = 41,956,000 MWh à 151.04 million gigajoules

Source

BASF Report 2023: Energy and Climate Protection, p. 105

Internal database

Comment/Additional Information

A core component in reducing our greenhouse gas emissions is the gradual conversion of our energy supply from fossil to renewable sources. This mainly affects our electricity supply. In 2023, electricity from renewable sources as a share of total electricity consumption rose compared with the previous year to 20% (2022: 17%).

To generate our own steam and power, we mainly use natural gas (78.8%) and substitute fuels (17.8%). The latter are residues from chemical production plants that cannot be reused in the BASF Verbund. In 2023, we covered 51% of our electricity demand with our own gas and steam turbines in highly efficient combined heat and power plants. Combined heat and power generation reduces the carbon footprint of our energy production and ensures that fuels are used as efficiently as possible: For instance, compared with separate methods of generating steam and electricity, we saved 10.8 million MWh of fossil fuels and avoided 2.2 million metric tons of CO₂ emissions in 2023. To achieve the highest possible energy yield with the lowest possible greenhouse gas emissions, we continuously optimize our combined heat and power plants. In 2023, internally generated power in the BASF Group had a carbon footprint of around 0.26 metric tons of CO₂ per MWh of electricity and was below the national grid factor at most BASF sites.

BASF Report 2023: Energy and Climate Protection, p. 104– 105

More information about Carbon Management: Our Carbon Management

Comment/Additional Information

The Verbund system is also key to carbon-optimized energy supply at our sites. It helps us realize synergies and manage value chains in a resource-efficient way. For example, waste heat from one plant’s production process is used as energy in other plants. The Verbund saved us around 17.3 million MWh in 2023, which translates to 3.5 million metric tons less CO₂ released into the atmosphere.

Source

BASF Report 2023: Energy and Climate Protection, p. 104

Water 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) 1,518 million cubic meters

Breakdown (million cubic meters/year):

Surface water/freshwater: 1,249

Brackish water/seawater: 168

Groundwater: 74

Drinking water: 20

Reusable wastewater from third parties: 3

Water produced: 5

1% of total water abstraction in water stress areas

(2) 6,528 million cubic meters (12% production, 88% cooling), 15% of which in water stress areas

Source

BASF Report 2023: In Focus: Water, p. 114

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

Accounting metric

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

Information

2 incidents (resolved)

Source

CDP Water Report 2023, p. 64-65

Water 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

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. We look at water availability, water quality and the impact of our water use on the environment and other users. For this, we use the standard of the Alliance for Water Stewardship (AWS) as guidance. AWS is a global multistakeholder organization that promotes the responsible use of water, which we are a member of.

Our goal is to introduce sustainable water management at our Verbund sites and at all production sites in water stress areas by 2030, covering around 90% of BASF’s total water abstraction. We achieved 70% of our target in 2023 (2022: 62%). Sustainable water management was introduced at seven further sites in 2023 (2022: seven sites). 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 such as water scarcity for the population. Based on the assessments conducted until the end of 2023, we did not identify a significant impact on water availability and quality resulting from our activities at any site.

Source

BASF Report 2023: In Focus: Water, pp. 112- 113

Comment/Additional Information

More examples for contextual issues, which are considered in water-related risk assessments of BASF: CDP Water Report 2023, pp. 74-76

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

Accounting metric

Amount of hazardous waste generated; percentage recycled

Information

Hazardous waste:

0.85 million tons of waste for disposal

0.57 million tons recovered waste

Total: 1.42 million tons

Source

BASF Report 2023: In Focus: Emissions to Air, Waste and Remediation, p. 111

Comment/Additional Information

Percentage of hazardous waste generated that was incinerated: 72.3%

0.42 million tons (with energy recovery) + 0.61 million tons (without energy recovery)

= 1.03 million tons

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

Source: internal database