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Value chain sustainability

From procurement at the supplier end, to production at various plants to the product delivery to the customers, the principle of aligning economic goals with environmental and social responsibility is applied throughout the value chain within the global network of BASF. While constantly measuring sustainability of our practices, we look beyond our own operations and collaborate with value chain partners to jointly generate social, economic and environmental value in a sustainable way.

  • Together for Sustainability initiative standardizes supplier audits in China
  • Supplier training with leading university

BASF is a founding member of the Together for Sustainability (TfS) initiative by leading chemical companies for the global standardization of supplier evaluation and auditing. The initiative aims to develop and implement a global program for the responsible supply of goods and services, and improve suppliers’ environmental and social standards. The evaluation process is simplified by third party online assessment or          on-site audit. Globally, the initiative’s members conducted a total of 1,794 sustainability assessments and 441 audits in 2017. To enhance mutual understanding of sustainable procurement, more than 300 local suppliers attended a training session on the occasion of 2017 China Petroleum and Chemical Industry Conference, held in Shanghai in September 2017.

BASF also provides training to Chinese suppliers to help them improve their sustainability performance. Since 2014, BASF has been holding in-depth training sessions in collaboration with East China University of Science and Technology, covering all aspects of sustainable operations to help the local suppliers improve their standards.

  • Shenxing Taibao Award to recognize performance of logistics service providers

BASF selects, manages and develops logistics service providers (LSPs) in accordance with the principle of sustainable logistics, to enhance their awareness of BASF’s standards and expectations.

BASF and BASF-YPC Company Limited (BASF-YPC) in Nanjing have jointly hosted the “Shenxing Taibao” Award since 2012, to recognize good performance in safety, efficiency, compliance, commitment, reliability, and emergency preparedness.

In 2017, eight LSPs received the award, among 90 participating suppliers, while six were granted the “Service Satisfaction Award” for the outstanding performance of their front-line service employees.

  • Contributing to the green supply chain of the construction industry

BASF is contributing to reducing environmental impact and optimizing resource efficiency in China’s construction industry. Set up by trade associations and market leaders, the “Green Supply Chain in Real Estate Industry in China” (GSC) initiative invited leading suppliers to set new standards for the entire industry supply chain from procurement, production, construction to recycling. Based on these standards, qualified suppliers of construction materials will be included in a GSC white list.

BASF supports this initiative by providing global expertise in setting environmental standards for construction products. In line with the Chinese regulatory requirements and certified  testing institutes, BASF has proposed standards for the limit of harmful substances in exterior and interior wall coatings, including volatile organic compounds, benzene and its derivatives, formaldehyde, and various types of heavy metals. In addition, we provided professional suggestions for GSC’s “Action Plan on the Hazard Control of Hexabromocyclododecane (HBCD) Flame Retardant in Polystyrene based Insulation Materials and its products” and for technical indicators. Through this action plan, the application of HBCD flame retardants in the polystyrene insulation materials will be prohibited at the source and substitutes will be promoted within the industry.

  • Improving regulations and processes for new chemical notification

BASF actively supports the development of effective and feasible chemical industry regulations in Greater China through multiple platforms. Since early 2014, we have worked to improve the regulations and processes for new chemical notifications. BASF initiated several workshops and seminars to exchange views and information with local industry associations, academia, industry partners and the government, and then made proposals for improving management principles, refining requirements of toxicology and ecotoxicology data and simplifying the registration process. Following four years of continuous effort, the data requirements for full notification of new chemicals have been simplified and came into force in October 2017.

  • Cement grinding agents improve energy efficiency and quality in the context of supply side reform

In the context of China’s “supply side reform” and the national environmental policy, domestic cement companies are required to improve their energy efficiency and product quality. Grinding, at various stages of cement production, is the process which requires the greatest amount of energy. It is also important for cement companies to increase their output and improve the fineness of the ground cement.

Leveraging our expertise in research and development and production capabilities, BASF initiated a collaborative project with Hongbaoli, a Chinese market leader in the isopropanolamines (raw material for cement grinding agents) and polyurethane industries, to improve the performance of cement grinding agents. Enhanced by innovative chemical components, the newly developed solution resulted in less energy consumption in the grinding process. It also contributed to higher output and better fineness of ground cement particles. The cement grinding agents further led to optimized strength grading of cement and better downstream end products.