Based on our purpose “We create chemistry for a sustainable future”, we want to contribute to a world that provides a viable future with enhanced quality of life for everyone. But is there a way to measure this?
BASF has developed a new method with external experts to perform the first monetary assessment of the economic, ecological, and social impacts of its business activities along the value chain: the “Value to Society” approach.
We want to measure the value proposition of our actions along the entire value chain, aware that our business activities are connected to both positive and negative impacts on the environment and society. We strive to increase our positive contribution to society and minimize the negative effects of our business activities.
We want to better understand the economic, social and environmental impact of our activities and their interdependencies along our value chains. To make our impacts on society more tangible and comparable, we measure and express them in monetary terms. This transparency enables the integrated character of our actions for more informed decision making and thereby contributes to BASF’s long-term success.
The approach supports us with:
We designed our Value-to-Society assessment with the following scope:
The data we apply for the Value-to-Society assessment consists of
The measured impacts are transferred into monetary values.
Examples for applied measurement methods:
The monetary valuation is measured in Euro.
For financial impact categories (profits, taxes, wages and benefits) the quantified impacts are multiplied with World Bank’s country-specific purchasing power parity factors to reflect the value in different societies.
For non-financial impact categories (human capital, health and safety, environmental impacts) we apply the valuation coefficients provided by PwC in their Total Impact Measurement and Management model (TIMM).