Company Name: BASF

Award Category: ESG Performance

Company Size: Large Business Group

Environment

Climate Change:

As an energy-intensive company, BASF takes responsibility for the efficient use of energy and global climate protection. BASF Group's ambitious global targets include Scope 1 and Scope 2 emissions: 1) Compared with the 2018 baseline, we want to reduce greenhouse gas emissions from our production sites and our energy purchases by 25% by 2030. 2) We want to achieve net zero greenhouse gas emissions by 2050.

To achieve this, we apply more efficient technologies to provide steam and electricity, for instance, by increasing the percent of renewable energy. We are continually working to reduce greenhouse gas emissions both in our own production and, together with our partners, along the value chain. We are researching and innovating new technologies to reduce greenhouse gas emissions in the long term to protect global climate.

We are intensely pursuing our climate protection targets with a comprehensive carbon management and investments of up to €4 billion by 2030.

Natural Resources and Energy: 

BASF is striving to decouple economic growth from the consumption of limited resources, strengthen the sustainability of our product portfolio, and reduce the impact of the entire value chain on the environment. We are pursuing ambitious climate protection targets with our carbon management.

At BASF Pudong site, we have installed PV panels for the parking lot, and have implemented the first storage case with a total capacity of 4MW/12MWh. Storage case is an emerging solution and technology for high renewable penetration in the grid, which contributes to the decarbonization of power system. Our new factory in Zhejiang will also be equipped with onsite PV panels as well when the new building completes construction.

PPA is a preferred option to secure large volume, stable green electricity supply over the long term. In 2021, BASF participated in China green power transaction on a large scale as the largest buyer in the Yangtze River Delta. In 2022, BASF bought about 210 GWh of green electricity via transaction in the national power exchange centre. The total volume is expected to increase to 320 GWh in 2023. 

In September 2023, BASF signed a 25-year power purchase agreement with State Power Investment Corporation to purchase renewable electricity for our Zhanjiang Verbund site. State Power Investment Corporation will provide 1 billion kilowatt hours of renewable electricity to our Zhanjiang Verbund site every year. The electricity mainly comes from the offshore wind farm and solar power farm in Guangdong province.

In July 2023, BASF and Mingyang agreed to jointly construct and operate an offshore wind farm in South China. The wind farm will have a total installed capacity of 500 megawatts. It is expected to be fully operational in 2025 and the majority of the power generated will be used to supply renewable electricity to our Zhanjiang Verbund site. This is the first Sino-German offshore wind farm project involving development, construction and operation. The wind farm is a key milestone in supplying BASF’s Zhanjiang Verbund site with 100% green power on start-up.

More and more of our customers are also making environmentally conscious purchasing decisions. Therefore, BASF has developed a digital application to calculate the cradle-to-gate Product Carbon Footprints (PCFs) for its 45,000 sales products. These PCFs include all greenhouse gas emissions – from raw materials extraction to the finished product leaving the factory gates. PCFs provide important information for assessing the climate impact of our products and guidance for implementing mitigation measures so that our customers can benefit from reduced carbon emissions in the value chain.

Prevention of Pollution:

In Greater China, several sites of BASF have implemented a real-time CO2 footprint management dashboard. It can accurately monitor the carbon emissions of each process unit and shed light on defining optimal carbon emission limits for optimization in the plant.

To avoid unforeseen emissions and the pollution of surface or groundwater, BASF developed a water protection strategy for each manufacturing site, as a mandatory part of the global Responsible Care® initiative, of which BASF is a member. The wastewater protection plan involves assessing the risks of wastewater and drawing up suitable monitoring methods. Wastewater risk assessment helps identify the potential risks of unexpected wastewater releases. Regular audits are carried out to ensure that appropriate measures are implemented and complied with.

BASF strives to design products and processes that minimize waste as much as possible. If waste is unavoidable, we explore recycling or energy recovery options at BASF's existing Verbund site. Waste from BASF’s chemical operations in Greater China totaled 96,680 metric tons in 2022, a significant 11.7% drop from the year before (2021: 109,489 metric tons). External waste management providers are audited on a regular basis to ensure that hazardous waste is appropriately processed and disposed of. Since 2013, we have been closely monitoring the soil and groundwater status of all sites in Greater China.

Other Actions Taken for Environmental Protection:

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. BASF aspires to contribute to a better planet and encourages its employees to participate in various local volunteering projects. 

Since July 2022, BASF has collaborated with the Zhanjiang Birds Watching Society Association (ZJBWS) to jointly carry out biodiversity conservation projects focusing on nature education and the protection of endangered birds. In October, BASF employees and members of JZBWS held a bird watching monitoring activity in Leizhou City. A total of over 160 birds were monitored, including black eagle and snake eagle which appeared in Zhanjiang for the first time in the year. This bird watching activity laid the foundation for future biodiversity conservation and science education in Zhanjiang.

Social

HR Development and Engagement:

BASF is committed to creating a safe, healthy, and inclusive work environment, ensuring employee well-being, and responding to employee needs. To create a safe and secure work environment, we encourage risk-averse behavior and safe working practices. Based on our expertise, we are constantly refining and enhancing our requirements and training. In 2022, BASF launched the Global Safety Days (GSD) campaign with the slogan “Think safety, act safely!” in Greater China. More than 200 safety activities were carried out both online and offline to increase our employees’ knowledge and awareness. Over 16,000 BASF employees and contractors in Greater China participated in this campaign.

BASF conducted its annual global employee survey Employee Voices, aiming to listen to employees and formulate actions to improve the working environment. The survey measures and tracks the status of the engagement level as well as key influencing factors like work atmosphere, development and recognition, effectiveness, change readiness, purpose and mission, and customer focus.

BASF’s success relies on its capability of matching the right people to the suitable jobs. In Greater China, we have implemented multiple recruitment strategies to attract potential candidates.

Diversity, Equity and Inclusion:

At BASF, we value workplace diversity and gender equality, counting them as vital to achieving long-term success. We are committed to increasing the proportion of women in leadership roles to 30% globally by 2030. We have achieved a significant progress toward this goal. In Greater China, the proportion of female leaders with disciplinary responsibility was 29.3% at the end of 2022 (2021: 28.5%). 

We are committed to providing equal opportunities to all employees, regardless of gender, age, and nationality. In 2022, 27.1% of BASF employees in Greater China were female (2021: 26.9%). The most substantial proportion (53%) of employees at BASF in Greater China was in the range of 26 to 39 years old.

Product Liability:

Quality management is critical to BASF. We continuously optimize the production process and product quality. We comply with all relevant national and international regulations and strictly adhere to internal guidelines to ensure global uniformity and high standards of product safety. To ensure high standards of product regulation, the environmental protection, health, safety, and quality departments of BASF conduct regular audits.

We give easy access to information and related hazards of our products to those who buy, sell, use, transport, or dispose them using the Globally Harmonized System (GHS), which is used to classify and mark our products globally. All the relevant information is managed via a global database. We subject our products to a variety of tests and assessments to uncover potential harmful qualities or dangers to health and the environment at an earlier stage. This is to ensure that necessary measures and recommendations are in place a every stage of the product lifecycle.

Supply Chain:

BASF is committed to improving sustainability in the overall supply chain of the chemical industry by having suppliers adhere to international environmental, social and governance (ESG) standards and regulations. BASF continued its Supplier CO2 Management Program in 2022 and invited more suppliers to join the program. By educating our suppliers on Product Carbon Footprint evaluation methodologies and tools, the program seeks to increase the transparency of the CO2 emissions associated with our purchased raw materials. This allows our suppliers to identify medium-term measures for optimization.

Working with various industrial partners, BASF created a uniform assessment scheme for warehouse service providers in the chemical industry. The Chemical Warehouse Safety Assessment System (CWSAS) is supported by industry associations, and BASF is one of the technical committee members. BASF assisted CWSAS in developing procedures and methodologies, as well as providing training to 31 appointed independent assessors.

The sustainability training webinars conducted by TfS members and EcoVadis were an integral part of the supplier development process. In 2022, over 1,900 participants from the globe, including more than 400 from Greater China, joined the webinars. In addition, TfS launched a new online learning platform, TfS Academy, with the intention of assisting its value chain partners with further optimization. With 335 courses available in ten distinct languages, the platform encompasses the entire spectrum of ESG-related topics.

Community Engagement:

Societal engagement is a cornerstone of our corporate social responsibility. At BASF, we aspire to grow our business in ways that are sustainable from economic, environmental, and social perspectives. We strive to help achieve the United Nation’s Sustainable Goals (SDGs) and strengthen local communities around our production sites worldwide. Our success is connected to the well-being of the communities where we operate. In 2022, we reaffirmed our commitments to making a positive long-term impact on the environment and society.

Stakeholder and community engagement is an essential part of BASF’s sustainability strategy. To foster and enhance mutual understanding with our neighboring communities and stakeholders in an open and transparent manner, we have been actively conducting community programs in China in past two decades.

Over the past two decades, BASF has been organizing Kids’ Lab events in Greater China. The program promotes science education among kids, enabling them to explore the wonder of chemistry and foster their interest for scientific exploration via interesting hands-on experiments. In 2022, BASF celebrated the 20th anniversary of BASF Kids’ Lab in Greater China through various programs and formats. As of the end of 2022, Kids’ Lab has attracted a total of over 200,000 participants in China.

Around 2022 World Clean-up Day, as the co-founder of the Alliance to End Plastic Waste (AEPW), BASF launched its annual employee volunteer clean-up campaign. Under the AEPW’s initiatives of “Clean4Change” to promote reduction and elimination of plastic waste in the natural environment, over 110 BASF employees from Shanghai, Guilin, Tianjin, and Taipei participated in the activity with their family and friends. A total of 580 kilograms of waste was collected, including polystyrene foams, plastics, PET bottles, bottle caps and fishing nets.

Corporate Governance

Governance Organizational and Mechanism:

BASF is committed to upholding a high standard of legal compliance and business ethics. Our group-wide Compliance Program aims to ensure adherence to legal regulations, the company’s internal guidelines, and ethical business practices. Our Code of Conduct firmly embeds these mandatory standards into the day-to-day operations of our employees.

BASF’s Compliance Program is based on our corporate values and voluntary commitments, as well as international standards. It describes our commitment to responsible conduct and our expectations of how all BASF employees will interact with business partners, officials, coworkers, and the community. At the core of our Compliance Program is the global, standardized Code of Conduct. All employees and managers are obligated to adhere to its guidelines, which cover topics ranging from corruption and antitrust laws to human rights, labor and social standards, conflicts of interest and trade control, and data privacy protection.

Abiding by compliance standards is the foundation of responsible leadership. This has also been embedded in our values. We are convinced that adhering to these standards will be critical in ensuring our company’s longterm success. Our efforts are principally aimed at preventing violations from the outset. One key element in the prevention of compliance violations is compulsory training and workshops held offline like in classrooms or online courses. All employees in Greater China are required, within a prescribed time frame, to take part in basic compliance training, refresher courses and special tutorials dealing with, for example, antitrust legislation, taxes, or trade control regulations. In 2022, more than 2,300 participants in Greater China received approximately 20 sessions of compliance training.

We firmly believe that for corporate responsibility to be successful, there must be an active culture within the company that lives by these guidelines. We expect all employees to act in line with the principles as embedded in our Global Code of Conduct. Managers play an important role here – they serve as examples, communicating our values and culture both internally and externally.

Innovation Sustainability:

Innovation is the bedrock of our success. BASF is a leader in the chemical industry with around 10,000 employees in research and development and R&D spending of around €2.3 billion. We are expanding this position by strengthening our research activities, bringing research and development even closer together, and fostering cooperation.

We have developed a ‘sustainable solution steering’ approach to evaluate the entire value chain lifecycle of our products, and comprehensively consider the specific situations of industries and regions in the market, striving to find a balance between economic, environmental, and social benefits. Based on the contribution of each solution to sustainable development, the 'Sustainable solution steering' categorizes it into four types: accelerator, performer, transitioner, and challenged. Our accelerator solutions have globally recognized sustainability advantages such as resource efficiency. We have set a grand goal for ourselves: by 2025, we will significantly increase the sales of accelerator products to 22 billion euros. This goal reflects our unwavering commitment to further driving innovation beyond today's latest levels. This goal reflects our unwavering commitment to further driving innovation beyond today's latest levels.

Extra Points

ESG / Sustainability / CSR reports, e.g.:

巴斯夫大中华区 2022 年度报告

Responsive to or engaged in ESG Initiatives / Standards / Goals:

CPD 碳披露项目

Other ESG related awards, e.g. TOP ESG Employer:

获得的相关奖项： 

a. 巴斯夫凭借对大中华区可持续发展和社会参与的承诺，连续 18 年获得 21 世纪传媒集团颁发的“最佳企业公民”奖

b. 巴斯夫连续 16 年被《南方周末》评为“年度杰出责任企业”

c. 巴斯夫 Joncryl® HPB 高性能水性阻隔涂层解决方案被评为2022年亚太经合组织中国工商理事会“可持续的消费与生产”年度案例

d. 巴斯夫 Haptex® 零有机溶剂合成革解决方案，则被列为《上海外商投资企业绿色低碳发展报告》优秀案例

e. 巴斯夫被评为“2023 年中国杰出雇主”，这也是公司连续 13 年获此殊荣