Our transformation along the value chain
Our Strategy
Chemistry is our passion. We make use of this passion for our customers: We want to offer them the best possible solutions and help them achieve their sustainability goals. With our products and technologies, our innovative and entrepreneurial spirit and the power of our Verbund integration, we want to grow profitably and, at the same time, create value for society and the environment. This is our goal, which is embedded in our corporate purpose: We create chemistry for a sustainable future.
Humankind is facing enormous challenges in order to preserve a world worth living in for future generations. The climate is changing, natural resources are becoming scarcer, pressure on ecosystems is increasing and our growing world population needs to be fed. More and more urgently than ever, solutions are needed for a sustainable future. Chemistry plays a key role here. In almost all areas of life, it can pave the way to greater sustainability and accelerate the transformation needed to achieve this. Our innovative products, solutions and technologies help to improve quality of life and protect the environment as well as the climate. We achieve this by using raw materials more efficiently, reducing waste and enabling the production of healthy and affordable food as well as climate-smart mobility.
At the same time, BASF is also undergoing profound changes. We are transforming our company and breaking new ground to increase our profitability and achieve climate neutrality. We are facing up to the challenge of making this change socially just. This involves managing long-term policy decisions like the European Green Deal, overcoming the consequences of current geopolitical conflicts and driving forward digitalization.
At the same time, these challenges also open up numerous opportunities for new business areas and innovative products. All of this requires a clear vision, responsible action as well as a high degree of creativity and flexibility.
We want to grow profitably and sustainably. To this end, we have set ourselves ambitious targets and defined concrete measures to achieve them: To increase our profitability, we are strengthening our competitiveness with our cost savings program focusing on Europe and we are adapting our Verbund structures in Ludwigshafen, Germany, to ensure the site remains future-proof. We are investing in growth markets, particularly in Asia, with China as the largest and most important growth driver of global chemical production. Furthermore, we are undergoing a fundamental transformation in the way we steer our company. As part of our Differentiated Steering concept, we are implementing new financial steering indicators tailored to each business. Our operating divisions are also continuing to adapt their specific business models and processes – supported by customized process structures, IT systems and governance frameworks.
To further embed sustainability in our business activities, we are driving innovations for a sustainable future, focusing our portfolio on growth areas and developing products with a lower carbon footprint. We are pioneers in climate-neutral production. This means we are gradually converting our energy supply from fossil fuels to renewable sources, developing new, pioneering emission-free and low-emission production processes for our products as well as strengthening the circular economy through the use of alternative raw materials and new recycling technologies. The success of these measures depends primarily on the ideas and commitment of our employees. This is why we want to create an environment in which they can thrive and contribute to BASF’s long-term success. Moreover, the diverse potential of digitalization used in our processes and business models further contributes to the successful implementation of these measures.
Innovation
Sustainability
Production
Digitalization
Portfolio
Employees
Our Values and Global Standards
As an international chemical company, we operate in markets and countries with different requirements and conditions. We always follow our corporate values and standards in order to act responsibly and secure our license to operate. By living these values every day, we ensure a culture of respect for our customers, partners and employees.
Together with our Code of Conduct Code of Conduct and our global standards, our CORE values lay the foundation for responsible conduct and trustbased relationships with our stakeholders. They define how we want to work together:
C
creative
We make great products and solutions for our customers. This is why we embrace bold ideas and give them space to grow. We act with optimism and inspire one another.
O
open
We value diversity, in people, opinions and experience. This is why we foster feedback based on honesty, respect and mutual trust. We learn from setbacks.
R
responsible
We value the health and safety of people above all else. We make sustainability part of every decision. We are committed to strict compliance and environmental standards.
E
entrepreneurial
We focus on our customers, as individuals and as a company. We seize opportunities and think ahead. We take ownership and embrace personal accountability.
Our standards are based on, and in some cases, exceed existing laws and regulations and take internationally recognized principles into account. We respect and promote:
- The Universal Declaration of Human Rights and the two U.N. Human Rights Covenants
- The 10 principles of the U.N. Global Compact
- The core labor standards of the International Labour Organization (ILO) and the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy
- The OECD Guidelines for Multinational Enterprises
- The Responsible Care® Global Charter
- The German Corporate Governance Code
The main guidelines are primarily summarized in our Group regulations on compliance, human rights, labor and social standards and in the Supplier Code of Conduct. We want to ensure that we act in line with the applicable laws and uphold our responsibility to the environment and society with our comprehensive management and monitoring systems.
The Corporate Audit department continuously monitors compliance with requirements. The head of our legal and compliance organization also acts as Chief Human Rights Officer and oversees the overarching risk management.
In a time of geopolitical upheaval, our binding values and standards become even more important. They give us orientation and are the basis for respect and trust.
Business and competitive environment
BASF’s global presence means that it operates in the context of various local, regional and global developments. These include:
- Global economic and political environment
- Legal and political requirements
- International trade agreements
- Industry standards
- Environmental agreements (such as the E.U. Emissions Trading System)
- Social aspects (such as the U.N. Universal Declaration of Human Rights)
BASF holds one of the top three market positions in around 80% of the business areas in which it is active. Our most important global competitors include Arkema, Bayer, Celanese, Clariant, Corteva, Covestro, Dow, DSM-Firmenich, Evonik, Huntsman, SABIC, Sinopec, Solvay, Syngenta, Wanhua and many hundreds of local and regional competitors. We expect competitors from Asia and the Middle East in particular to continue to grow in significance in the years ahead.