Korea
Sustainability
Business Model & Innovation Index
Product Design for Use-phase Efficiency (SASB Code: RT-CH-410a.1)
Accounting metric
Revenue from products designed for use-phase resource efficiency
Information
A significant steering tool for the product portfolio, based on the sustainability performance of our products, is the Sustainable Solution Steering method. It considers our products’ applications in various markets and customer industries. Transparently classifying our products on the basis of their contribution to sustainability enables us to systematically improve them.
By the end of 2021, sustainability analyses and assessments had been conducted for more than 56,000 specific product applications, accounting for €71 billion in sales and 98.7% of the relevant portfolio.
Accelerator Products (substantial sustainability contribution in the value chain): €24.10 billion
Performer (meet basic sustainability standards on the market): €39.03 billion
Source
Comment/Additional Information
Accelerator products make a substantial sustainability contribution in the value chain. These include catalysts that reduce emissions to the environment, biodegradable mulch films for agricultural applications, and high-performance insulation materials for higher energy savings and reduced material use in building construction.
New market requirements arise as a result of the continuous development of new product solutions in the industry or changing regulatory frameworks. This has an effect on the comparative assessment, which is why we regularly reassess our product portfolio.
We already met our 2025 target of generating Accelerator sales of €22 billion in 2021. In the future, we want to align our product portfolio even more strongly with climate protection, carbon neutrality and circularity in order to meet the growing sustainability demands in our markets with innovative solutions. Consequently, we will update our product portfolio steering target in 2022.
BASF Report 2021: Our Strategic Action Areas, p. 29
BASF Report 2021: We Drive Sustainable Solutions, p. 141
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. In order to help users to quickly find out about our products and the risks associated with them, we use the Globally Harmonized System (GHS) to classify and label our products around the world, provided this is legally permissible in the country concerned. We take into account any national or regional modifications within the GHS framework, such as the E.U.’s CLP Regulation.
We train our employees, customers and logistics partners worldwide on the proper handling and optimal use of selected products with particular hazard potential. Furthermore, 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 or KKDIK in Turkey. BASF Group companies work closely together with a global network of experts to ensure that BASF complies with the applicable regulations.
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) We are committed to continuously minimizing the negative effects of our products on the environment, health and safety and to the ongoing optimization of our products. This commitment to product safety is enshrined in our Responsible Care® charter and the initia-tives of the International Council of Chemical Associations (ICCA). Our products should not pose any risk to humans or the environment when used responsibly and in the manner intended. We aim to comply with all relevant national and international laws and regulations. Our global requirements define rules, processes and responsibilities, for example, to ensure uniformly high product safety standards worldwide. Our sites and subsidiaries are responsible for implementing and complying with internal guidelines and legal requirements. The Environmental Protection, Health & Safety unit in the Corporate Center conducts regular audits to monitor this. BASF’s global network of experts shares information, insights and best practices around product safety on an ongoing basis.
(2) In addition, we actively steer our product portfolio toward sustainability via our Sustainable Solution Steering methodology. By the end of 2021, we had conducted sustainability analyses and assessments for 98.7% of our relevant portfolio, corresponding to more than 56,000 specific product applications, accounting for €71 billion in sales. We review the categorization of the portfolio at least every four years. This includes analyzing the portfolio in workshops. 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 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 2021: Product Safety, p. 123
BASF Report 2021: We Drive Sustainable Solutions, p. 141-142
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.