A recognized leader in ESG

The non-profit organization CDP has rated BASF as one of the world’s leading companies in the areas of forest and climate protection and sustainable water management. BASF received an “A” rating in the categories of climate protection and forest protection and an “A-” rating for water security. This means that BASF achieved leadership status in all three categories.

BASF received an “A” rating in the climate category on CDP, not only achieving leadership status but also making it onto the A list. The company has been participating in CDP’s climate protection data reporting program since 2004. Among other things, CDP evaluates the transparency of emissions reporting, the handling of climate change risks and opportunities, the climate protection strategy, and measures to reduce CO₂ emissions.

This year, as in the previous year, BASF received an “A-” rating for water security. A CDP guideline stipulates that companies that manufacture products containing hazardous substances cannot receive an “A” in the water category. The CDP assessment takes into account how transparently companies report on their water management activities and how they reduce risks such as water scarcity. CDP also assesses the extent to which the product development of the companies evaluated can contribute to sustainable water management by their customers.

BASF achieved an “A” rating for the first time for its efforts to protect forests. This rating is based on a detailed analysis of the palm oil value chain and activities that have an impact on ecosystems and habitats. Palm kernel oil and its primary derivatives are among the company’s most important renewable raw materials. Among other things, the top rating was due to BASF’s high transparency in the disclosure of deforestation-relevant raw materials and supply chains, a high level of public engagement, and activities and initiatives such as smallholder projects in the palm oil supply chain.

ISS ESG has again rated BASF in the category Prime. Prime Status is awarded to leaders in the respective industry that succeeded in the rating process according to industry-specific criteria in terms of social and environmental compatibility. BASF earned recognition for its efforts to mitigate key social and environmental risks through robust facility and transport safety standards and the implementation of alternative raw material strategies. BASF was also acknowledged for promoting health through air pollution control technologies and pharmaceutical components, as well as for optimizing material use with its recycling services.

In September 2025, BASF was rated BBB. The analysts highlighted the company’s performance in terms of governance, low CO₂ intensity and robust water management.

BASF belongs to the best category for “diversified chemicals” with a medium ESG risk and was recognized for its strong risk management, e.g., in the areas of CO₂ emissions, corporate governance as well as occupational health and safety.

In order to provide more transparency, BASF has conducted a global analysis of its product portfolio and has identified 48 substances assigned to BASF that in our view do not meet ChemSec’s criteria for nomination to the “SIN List.”

These are:

• 11 substances that are not part of BASF’s portfolio
• 32 substances that do not justify inclusion on the “SIN List” because they are used as processing agents¹ or intermediates or may be present as impurities in products sold to the market at or below legally permitted concentrations
• 5 substances that are not classified in a hazard category relevant for nomination to the “SIN List”

This reduces the number of substances ascribed to BASF on the “SIN List” from 135 to 87. Our production processes comply with environmental legislation for these strictly regulated substances.

This analysis, which BASF plans to repeat on an annual basis, should not be considered as an indication that we support ChemSec’s methodology or their substitution approach. We will continue to engage with ChemSec to share our expertise and question their methodology.

An overview of the substances in the three categories described above is available here.

¹ In chemistry, a processing agent is a substance used in a chemical process to facilitate or enhance the reaction, purification or transformation of other substances but is not consumed or incorporated into the final product. Essentially, it aids the process without becoming part of the finished material.

There have been critical media reports about emissions of the PFAS trifluoroacetic acid (TFA) at BASF’s site in Saint-Aubin-lès-Elbeuf (Elbeuf), France, where TFA is used in certain steps of a key production process. The Elbeuf site has been and continues to be in legal compliance with all applicable legislation and directives from local authorities, including the European REACH regulation and the conditions outlined in the site’s operating permit. This has been confirmed through multiple inspections by the French authorities (DREAL).

The implementation of the French Ministerial Order of June 20, 2023, introduced new regulatory requirements for the analysis of PFAS. BASF therefore implemented a dedicated monitoring program, established an immediate action plan to reduce TFA emissions revealed by that monitoring, and has engaged with stakeholders at the Elbeuf site. The action plan was validated by the authorities and was implemented stepwise starting in November 2024. It comprises the following measures:

1. Substitution of TFA: BASF has initiated an R&D study aiming to completely replace TFA in the production process in the long term.
2. Reduction at the source: In the interim period, before substitution is possible, BASF has implemented significant technical changes and process adjustments to reduce TFA emissions to wastewater. Investments are in the single-digit million-euro range. As a result, TFA emissions in Elbeuf have already been reduced by more than 85%. This reduction has been confirmed by on-site inspections by the competent authority DREAL.
3. Downstream treatment: BASF is evaluating additional technical measures to treat wastewater and further reduce TFA emissions.

On December 5, 2025, a complementary prefectural order was released that defined new limits for PFAS emissions at the site and in particular for TFA. BASF has worked closely with the authorities and will strive to comply with these new limits.

Ensuring adequate agricultural production to feed a growing population is an integral part of BASF’s vision for sustainable agriculture and environmental stewardship. Bees and other pollinators play a crucial role in this process, and it is essential that crop protection products support this role rather than being at odds with it. According to the Food and Agriculture Organization of the United Nations (FAO), over 75 percent of the world’s food crops depend on pollination from animal pollinators including bees, making reports of declines of bees and other pollinators and insects a major concern. Drivers of pollinator decline are complex, and misuse of pesticides is only one of the contributing factors.

While we are convinced of the safety of the products we sell when used according to label instructions, misuse cannot be completely excluded. We support immediate action to implement evidence-based measures to protect and enhance pollinators alongside food yield, which is why we have specific product stewardship guidelines to prevent harm to bees and other pollinators.

We are also working towards better understanding and resolving the barriers to farmers implementing pollinator-friendly practices on farm within a pilot project in Brazil with an aim to create a world-first nature-based market.

Our crop protection products undergo many years of extensive and stringent testing to ensure that there are no adverse impacts to the environment, including bees. Tests must meet regulatory standards, and authorities carefully evaluate the results and the impact on the environment before they approve a product to be marketed.

Risk mitigation measures are applied for the safe use of crop protection products and product registrations may impose their mandatory use. Depending on the circumstances of the individual case, these measures can include for example:

• buffer zones between treated and natural areas
• use of specific tools to minimize spray drift to adjacent areas
• use of special machinery for treated seeds to minimize product abrasion and dust drift
• restricted application times (e.g., apply only when bees are not actively foraging)

Going beyond regulatory requirements, we have also defined and implemented product stewardship measures, which contribute to the protection of bees (e.g., training and correct application technology). An example of such a stewardship activity is this e-learning tool: Pollinator Protection

Neonicotinoids

We understand concerns about the well-being of pollinator populations in connection with modern agriculture practices. Both honeybees and plant protection products play a crucial role in the production of agricultural goods. It is in our own interest to ensure that the responsible and correct use of our products – within the broader framework of sustainable agriculture – is compatible with beekeeping and wild bee populations.

However, more than 10,000 species of plant-eating insects and 3,000 species of roundworms can attack farmers’ crops around the world leaving food, fuel and fiber crops damaged and unusable.  Farmers need tools to fight insect pests, or they will lose substantial amounts of their harvests.

Neonicotinoids which are used as a seed treatment, are important to help growers improve productivity and realize crop health outcomes. They are a vital part of Integrated Pest Management (IPM) programs and alternative products with an equivalent level of efficacy are limited. Seed treatments present an effective measure to help reduce the contact of an insecticide with pollinators and thus reduce risk of exposure. Planting seeds pre-treated with neonicotinoids has reduced the amount of foliar applications of insecticides required during establishment of healthy crops.

We are convinced that neonicotinoids can be used safely in seed treatment. Our crop protection products undergo many years of extensive and stringent testing to ensure that there are minimal adverse effects to the environment, including pollinators, if used according to label directions. We will continue to engage in extensive training and other stewardship activities to ensure that seed treatment products are handled and applied safely.

At the beginning of 2023, an internal audit of our joint venture operations in Korla, China, was carried out to verify compliance with the BASF Code of Conduct and the requirements embedded in it to respect human rights as well as key labor and social standards.

This investigation, as well as past audits, did not reveal any evidence of human rights violations in the two joint ventures. We have obtained written confirmation from key suppliers, including our joint venture partners, that they accept our Supplier Code of Conduct. Nevertheless, reports from spring 2024 on the joint venture partner in Korla contain serious allegations that indicate activities that are not compatible with BASF’s values. BASF has divested its shares in the joint venture companies, BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd. in Korla, China, to Verde Chemical Singapore Pte. Ltd. Following approval by the relevant authorities, the transaction was completed effective April 21, 2025.

Detailed statement and news release available at: https://www.basf.com/global/en/who-we-are/sustainability/responsibility-for-society-and-nature/efficient-safe-responsible-production/product-responsibility/audits/xinjiang
 

Allegations of forced labor in the supply chain

BASF sourced raw materials from a supplier about whom concerns regarding potential forced labor practices were raised. The supplier underwent regular sustainability assessments, which included reviews of labor and human rights; these assessments found no evidence of forced labor. Additional sustainability training, including on human rights, was offered through the Together for Sustainability (TfS) initiative. We clearly communicated our expectations and secured appropriate contractual assurances.

The supplier is not based in the Xinjiang region. We are also not aware of any specific indications of human rights violations at this supplier. However, a report by Global Rights Compliance from June 2025 details the risks associated with Xinjiang and identifies critical raw material supply chains and potential actors. In light of this, we have suspended supplies from this supplier for the time being.

• Since August 2019, BASF Corporation, a subsidiary of BASF SE, has been named as one of many defendants in complaints involving PFAS substances filed in various states.
• In the complaints filed to date against BASF Corporation, the company has been generally named as a successor in interest to Ciba Specialty Chemicals Inc., which was acquired by BASF in 2009.
• The plaintiffs have identified numerous manufacturers of PFOS, PFOA, aqueous film-forming foam (AFFF) and related products, as defendants. Neither BASF nor its predecessor Ciba made AFFF, PFOS or PFOA.
• On May 20, 2024, BASF Corporation announced that it had agreed to a settlement with a nationwide class of public water systems that detected PFAS in their drinking water sources, which they allege to be associated with the use of Aqueous Film Forming Foam (“AFFF”) products. Under the terms of the agreement, BASF has agreed to contribute $316.5 million ($312.5 million to resolve the PFAS claims, plus $4 million toward settlement administration costs). This settlement was entered in connection with the previously disclosed AFFF multi-district litigation (“MDL”) being overseen by the United States District Court for the District of South Carolina (the “MDL Court”). 
• BASF paid $4 million on July 18, 2024, and will pay $312.5 million on March 1, 2025. BASF has a significant amount of insurance through a number of insurers and is pursuing recovery of its settlement payment under those policies.
• On November 22, 2024, the MDL Court granted Class Counsel’s motion for final approval of the BASF settlement. 
• The settlement does not constitute an admission of liability or wrongdoing by BASF or Ciba. BASF intends to continue to defend itself in all remaining AFFF matters in the MDL and all other PFAS-related matters.