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Sustainability

Environmental Index

GHG Emissions (SASB Code: RT-CH-110a.1)

 
Accounting metric
Gross global scope 1 emissions, percentage covered under emissions-limiting regulation
 
Information 
Carbon Dioxide: 16,860 million metric tons
Methane: 0.025 million metric tons
Nitrous Oxide: 0.609 million metric tons
Hydrofluorocarbons: 0.032 million metric tons
Ca. 62% of the emissions are covered by ETS/carbon tax systems.*
 
Source

BASF Report 2020: Energy and Climate Protection, p. 131

CDP Climate Report 2020, p. 100-104*

 

Comment/Additional Information

Climate protection is very important to us and is an important part of our corporate strategy. On March 26, 2021, BASF announced that it has set itself new, more ambitious goals on its journey to climate neutrality and wants to achieve net zero emissions by 2050. Based on the most recent progress in developing low-emission and CO2-free technologies, BASF is also significantly raising its medium-term 2030 target for reductions in greenhouse gas emissions: BASF wants to reduce its greenhouse gas emissions worldwide by 25 percent compared with 2018 – and to achieve this despite targeted growth and the construction of a large Verbund site in South China. Excluding the effects of the planned growth, this means cutting CO2 emissions in half in the current business by the end of this decade. To achieve this, we have adopted comprehensive carbon management. CO2 avoidance potential in electric power and steam production is covered through our levers “Grey-to-green” and “Power-to-steam”. CO2 emissions in our upstream and, to a lesser extent, downstream plants are addressed by new technologies. In addition, bio-based feedstocks will be used seamlessly in our production – partially replacing fossil feedstocks.

“Continuous opex” will be applied at all levels. These operational excellence measures help us to continuously reduce our CO2 emissions. They have the greatest impact at our Verbund sites.

In connection with our climate protection target, we made Group-wide CO2 emissions one of our most important key performance indicators at the beginning of the 2020 business year. This makes emissions even more important to the operational and strategic steering of the BASF Group.

Our climate protection activities are based on a comprehensive analysis of our emissions. We report on greenhouse gas emissions in accordance with the Greenhouse Gas Protocol as well as the sector-specific standard for the chemical industry. Sharp increases in our greenhouse gas emissions, due for example to the startup of large-scale plants, are progressively offset. We assess investments and acquisitions with respect to the impact on our climate protection target. If, for technical or economic reasons, our carbon management activities cannot achieve our CO2 emission reduction targets, we will also consider taking short-term external offsetting measures such as purchasing certificates.

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 does not report PFC, SF6 and NF3, since there are no significant emissions.

News release: BASF presents roadmap to climate neutrality

Keynote of Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, at BASF Capital Markets Day on March 26, 2021: Our journey to net zero 2050

 

 * Will be updated with the issuance of the CDP Climate Report 2021.

 

 

GHG Emissions (SASB Code: RT-CH-110a.2)

 

Accounting metric

Discussion of long-term and short-term strategy or plan to manage scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

 

Information

We want to achieve net zero emissions by 2050. By 2030, we want to reduce our greenhouse gas emissions worldwide by 25 percent compared with 2018.  In 2020, the emissions reported amounted to 20.8 million metric tons of CO2 equivalents, an increase of 3.5% compared to 2019 (20.1 million). The decline in emissions due to measures to increase energy efficiency and optimize processes as well as lower production volumes were more than offset by the integration of the polyamide business acquired from Solvay in January 2020 and the fact that there were fewer shutdowns of large-scale, emission-intensive plants.

Global activities to reach our climate protection target and reduce greenhouse gas emissions over the long term are bundled in our Carbon Management. We have adopted a three-pronged approach: increase production and process efficiency, purchase electricity from renewable sources, and develop completely new low-emission technologies and processes.

 

Source

BASF Report 2020: Climate Protection with Carbon Management, p. 131, 135

News release: BASF presents roadmap to climate neutrality

Keynote of Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, at BASF Capital Markets Day on March 26, 2021: Our journey to net zero 2050

 

More Information on Carbon Management: Our Carbon Management

 

Comment/Additional Information

As an energy-intensive company, we are committed to energy efficiency and global climate protection. We want to reduce emissions along the value chain. To achieve this, we rely, inter alia, on efficient technologies for generating steam and electricity, increased use of renewable energies, energy-efficient production processes and comprehensive energy management. We are researching and developing completely new processes and technologies to reduce our greenhouse gas emissions over the long term. Our climate protection products make an important contribution toward helping our customers avoid emissions.

BASF Report 2020: Energy and climate protection, p. 130

Air Quality (SASB Code: RT-CH-120a.1)

 

Accounting metric

Air emissions of the following pollutants:
(1) Total nitrogen oxides (NOX; excluding N2O),
(2) Total sulfur oxides (SOX),
(3) Volatile organic compounds (VOCs), and
(4) Hazardous air pollutants (HAPs)
(5) Carbon monoxide (CO)

 

Information

(1) NOX: 10,010 metric tons
(2) SOX: 1,861 metric tons
(3) VOCs: 4,702 metric tons Non-methane volatile organic compounds (NMVOC)
(4) HAPs: included in VOCs
(5) CO: 3,507 metric tons

 

Source

BASF Report 2020: Air, waste and soil, p. 137

 

Comment/Additional Information

BASF records substances that can have a negative impact on health and the environment. These substances are assigned to VOCs and published as totals. BASF records those substances where emissions are expected in the process and which must be measured at the request of the authorities due to their hazard potential.

Energy Management (SASB Code: RT-CH-130a.1)

 

Accounting metric

(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable
(4) Total self-generated energy

 

Information

(1) (56,258,000 MWh energy consumption + 5,276,000 MWh conversion fuel consumption to GCV) * 3.6 = 221.52 million gigajoules
(2) grid electricity import for own consumption / total energy consumption: 5,421,468 MWh / 61,534,000 MWh = 8.8%
(3) total renewable energy / total energy consumption: 114,676 MWh / 61,534,000 MWh = 0.2%
(4) Self-generated steam: 50,450,501 t = 37,837,876 MWh (conversion factor 0.75)
Total self-generated energy: 10,325,333 MWh electricity + 38,837,876 MWh steam = 48,163,208 MWh -> 173.39 million gigajoules

 

Source

BASF Report 2020: Energy and Climate Protection, p. 132
Internal database

Comment/Additional Information

As part of our Carbon Management Program, we aim to increase the proportion of renewable energy in the electricity purchased for our production sites. 19 sites in Europe and North America already source emission-free electricity from suppliers.

To generate our own steam and power, we mainly use natural gas (82.7%) and what are known as substitute fuels (14.9%). These are residues from chemical production plants that can no longer be reused. We cover more than 70% of the BASF Group’s electricity demand with gas and steam turbine plants in highly efficient combined heat and power plants. Compared with separate methods of generating steam and electricity, we saved 12.0 million MWh of fossil fuels and avoided 2.4 million metric tons of carbon emissions in 2020. In 2020, internally generated power in the BASF Group had a carbon footprint of around 0.24 metric tons of CO2 per MWh of electricity and was below the national grid factor at most BASF Group locations. The figure for purchased electricity in 2020 was around 0.41 metric tons of CO2 per MWh (market-based approach).

BASF Report 2020: Energy and Climate Protection, p. 133

BASF Report 2020: Climate protection with carbon management, p. 135

More Information on Carbon Management: Our Carbon Management

Water & Wastewater Management (SASB Code: RT-CH-140a.1)

 

Accounting metric

(1) Total water withdrawn

(2) Total water consumed, percentage of each in regions with high or extremely high baseline water stress

 

Information

(1) 1,728 million cubic meters

Breakdown (million cubic meters/year):

Surface water/freshwater: 1,417

Brackish water/seawater: 218

Groundwater: 62

Drinking water: 23

Reusable wastewater from third parties: 3

Water produced: 5

1% of total water abstraction in water stress areas

(2) 63 million cubic meters (13% production, 87% cooling), 11% of which in water stress areas

 

Source

BASF Report 2020: Water balance, p. 140, graphic “Water in the BASF Group 2020”

 

Comment/Additional Information

Definition water stress areas: all areas in which more than 40% of available water is used by industry, household and agriculture.

Water & Wastewater Management (SASB Code: RT-CH-140a.2)

 

Accounting metric

Number of incidents of non-compliance associated with water quality permits, standards, and regulations

 

Information

3 incidents (fixed)*

 

Source

CDP Water Report 2020, p. 26*

 

Water & Wastewater Management (SASB Code: RT-CH-140a.3)

 

Accounting metric

Description of water management risks and discussion of strategies and practices to mitigate those risks

 

Information

BASF aims to use water as sparingly as possible and further reduce emissions to water.

Sustainable water management has been a central element of our strategy to use water responsibly for many years. We aim to introduce sustainable water management at all relevant production sites. These include our Verbund sites and sites in water stress areas. Our sustainable water management aims to protect water as a resource, continuously improve water use efficiency, and consistently reduce emissions. We consider the quantitative, qualitative and social aspects of water use. In the final assessment of the CDP Water Report 2020, BASF again achieved the top grade of A and thus Leadership status.

BASF aims to achieve sustainable water management through the application of the European Water Stewardship standard, which rests on four principles: sustainable water abstraction, maintaining good water quality, preserving conservation areas and ensuring continuous improvement processes. BASF has various procedures for identifying and assessing water-related risks (direct operations, supply chain and in other stages of the value chain). Examples: WRI Aqueduct, COSO Enterprise Risk Management Framework, Alliance for Water Stewardship Standard, European Water Stewardship (EWS) Standard, Environmental Impact Assessment, Life Cycle Assessment.

 

Source

BASF Report 2020: Water, p. 139

CDP Water Report 2020, p. 31-32

 

Comment/Additional Information

Our goal is to introduce sustainable water management at our production sites in water stress areas and at our Verbund sites by 2030, covering 93% of BASF’s total water abstraction. We achieved 46.2% of our target in 2020 (2019: 35.8%). Sustainable water management was introduced at six sites in 2020 (2019: 8).

BASF Report 2020: Water, p. 139

More examples for contextual issues, which are considered in water-related risk assessments of BASF: CDP Water Report 2020, p. 33

 

*Will be updated with the issuance of the Climate Water Report 2021.

Hazardous Waste Management (SASB Code: RT-CH-150a.1)

 

Accounting metric

Amount of hazardous waste generated, percentage recycled

 

Information

Hazardous waste
0.89 million tons waste for disposal
0.57 million tons recovered waste
Total: 1.46 million tons

 

Source

BASF Report 2020: Air, waste and soil, p. 138

Internal database

 

Comment/Additional Information

Instead of the term “physical recovery,” BASF uses the term “recycled.”
Percentage of hazardous waste generated that was incinerated: 73%
0.43 million tons (with energy recovery) + 0.64 million tons (without energy recovery)
= 1.07 million tons  
Source: internal database