Sustainability
Business Model & Innovation Index
Product Design for Use-phase Efficiency (SASB Code: RT-CH-410a.1)
Sustainable Solution Steering: We use this tool to review and guide our product portfolio in terms of sustainability, for the assessment of innovation projects and the integration of sustainability into R&D processes as well as the development of business strategies. By the end of 2020, 98.4% of the relevant portfolio have been evaluated.
Accelerator Products (substantial sustainability contribution in the value chain): €16.74 billion
Performer (meets basic sustainability standards on the market): €30.52 billion
BASF Report 2020: Integration of Sustainability, p. 45
BASF Report 2020: Opportunities and risks, p. 165
Comment/Additional Information
By the end of 2020, sustainability analyses and assessments had been conducted for more than 57,000 specific product applications, accounting for €54.1 billion in sales. Since 2004, we have participated in the international non-profit organization CDP’s program for reporting on data relevant to climate protection. BASF achieved a score of A– in CDP’s rating for 2020, thus attaining Leadership status again. Companies on the Leadership level are distinguished by factors such as the completeness and transparency of their reporting. They also pursue comprehensive approaches in managing the opportunities and risks associated with climate change as well as emissions reduction strategies to achieve company-wide goals.
BASF Report 2020: Integration of Sustainability, p. 45
BASF Report 2020: Energy and climate protection, p. 131
More information on our Sustainable Solution Steering methodology: Sustainable Solution Steering
Safety & Environmental Stewardship of Chemicals (SASB Code: RT-CH-410b.1)
Accounting metric
(1) Percentage of products that contain Globally Harmonized System of Classification and Labeling of Chemicals (GHS) Category 1 and 2 Health and Environmental Hazardous Substances,
(2) Percentage of such products that have undergone a hazard assessment
Information
We maintain and evaluate environmental, health and safety data for our substances and products in a global database. This information is updated continuously. The database forms the basis for our safety data sheets, which we make available to our customers in around 40 languages. These include information on the physical/chemical, toxicological and ecotoxicological properties of products, potential hazards, first aid measures, measures to be taken in the case of accidental release, and disposal. Our global emergency hotline network enables us to provide information around the clock. We train and support our customers in fulfilling their industry or application-specific product requirements. In associations and together with other manufacturers, BASF is pushing for the establishment of voluntary global commitments to prevent the misuse of chemicals.
BASF wants to ensure compliance with relevant regional and national chemicals regulations emerging worldwide, e.g., REACH in the European Union, TSCA in the United States, KKDIK in Turkey or K-REACH in South Korea. In 2020, we submitted the relevant substances to the Turkish authorities. After successfully registering all substances in Europe, our REACH activities concentrate on aspects such as dossier evaluation, substance evaluation, authorization and restriction. We are also required to continually update our registration dossiers. To satisfy the complex requirements of REACH, we are in regular contact with suppliers, customers, industry associations and government authorities. BASF is working together with the European Chemicals Agency (ECHA) on a project to improve the quality of REACH dossiers. BASF was one of the first companies to join this industry-wide initiative.
Source
Safety & Environmental Stewardship of Chemicals (SASB Code: RT-CH-410b.2)
Accounting metric
Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/or environmental impact
Information
(1) BASF supports the implementation of initiatives such as the Global Product Strategy (GPS) of the ICCA. GPS is establishing worldwide standards and best practices to improve the safety management of chemical substances and to support governments in the introduction of local chemical regulations. We are also involved in initiatives such as workshops and training seminars in emerging markets. In 2020, these included the virtual ASEAN (Association of Southeast Asian Nations) workshop on regulatory cooperation.
(2) In addition, we actively steer our product portfolio toward sustainability via our Sustainable Solution Steering methodology. By the end of 2020, we had conducted sustainability analyses and assessments for 98.4% of our relevant portfolio, corresponding to more than 57,000 specific product applications, accounting for €54.1 billion in sales. If, during re-assessment of our portfolio, we identify products with substantial sustainability concerns, we classify these as “Challenged.” Challenged products account for around 0.1% of the evaluated relevant portfolio. We develop and implement action plans for all products in this category. These action plans include research projects and reformulations to optimize products, or even replacing the product with an alternative. To systematically align our portfolio with contributions to sustainability, as of 2018, we will phase out all Challenged products within five years of initial classification as such at the latest. We strive to offer products that make a greater contribution to sustainability in their area of application to live up to our own commitments and meet our customers’ demands. This is why our Sustainable Solution Steering method is used in areas such as our research and development pipeline, in business strategies as well as in merger and acquisition projects.
Source
BASF Report 2020: Product Stewardship, p. 126
BASF Report 2020: Integration of Sustainability, p. 46
Comment/Additional Information
More information on our Sustainable Solution Steering methodology: Sustainable Solution Steering
Genetically Modified Organisms (SASB Code: RT-CH-410c.1)
Accounting metric
Percentage of products by revenue that contain genetically modified organisms (GMOs)
Information
We do not publish this figure, since it is not used for internal portfolio steering purposes of BASF Group.