United Arab Emirates
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
We already met our 2025 target of generating Accelerator (products with a substantial sustainability contribution in the value chain) sales of €22 billion in 2021 with sales of €24.1 billion. In order to address the growing sustainability requirements in our markets with innovative solutions, we want to align our product portfolio even more strongly with climate protection, climate neutrality and the circular economy going forward. That is why we are updating our methodology and our product portfolio steering target and will introduce a revised method in 2023.
Source
BASF Report 2022: Our Sustainability Concept, p. 45
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 continuously updated. The database forms the basis for communicating this information in 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. To ensure that people who buy, sell, use, transport or dispose of our products can 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 regulation on the classification, labeling and packaging of substances and mixtures (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, UK REACH in the United Kingdom, K-REACH in South Korea, 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
BASF Report 2022: Product Safety, p. 130
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 initiatives 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 Group companies are responsible for implementing and complying with internal guidelines and legal requirements. The Environmental Protection, Health, Safety and Quality 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 method. This rates our products’ applications in the relevant markets and customer industries. If, during reassessment of our portfolio, we identify products with significant sustainability concerns, we classify these as “challenged.” We develop and systematically 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 rigorously align our portfolio with contributions to sustainability, in 2018 we started phasing out all Challenged products within five years of their initial classification as “challenged” at the latest. A particular focus in the continued development of our product portfolio is on products that make a substantial sustainability contribution in the value chain. These include products that make positive contributions to areas such as health and safety, reducing emissions and the circular economy. 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.
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. That is why we are updating our Sustainable Solution Steering methodology for steering the product portfolio based on sustainability. We will apply the new methodology for the first time in the 2023 business year.
Source
BASF Report 2022: Management’s Report – Our Strategic Action Areas , p. 29
BASF Report 2022: Our Sustainability Concept, p. 45
BASF Report 2022: Product Safety, p. 130
BASF Report 2022: Opportunities and risks, p. 165
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.