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Diversity and Inclusion

The global character of our markets translates into different customer requirements. We want to reflect this diversity among our employees, too, because it enables them to better meet our customers’ needs. For us, diversity means, among other things, having people from different backgrounds working at our company who can draw on their individual perspectives and skills to grow our business. By valuing and promoting employee diversity, we boost our teams’ performance and power of innovation, and increase creativity, motivation and employees’ identification with the company.

Promoting and valuing diversity across all hierarchical levels is an integral part of our strategy and is also embedded in our corporate values. BASF strives to foster a working environment based on mutual respect, trust and appreciation. This is enshrined in our global Competency Model, which provides a framework for our employees and leaders. The inclusion of diversity is anchored in this model as one of the behaviors expected of employees and leaders.

Our leaders play an important role in its implementation. We support them with various, flexible offerings. For instance, we have provided a toolbox with a wide range of content to enable a change of perspective and on promoting diversity and inclusion. A new podcast series from leaders shows the importance of appreciative, fair and inclusive leadership.

Integrating different perspectives is very important to BASF. There are a number of Employee Resource Groups around the world dedicated to different aspects of diversity. In addition, we want to create a greater awareness of diversity in our organization with various activities. BASF supports the German Diversity Charter and has participated in German Diversity Day and European Diversity Month with various virtual initiatives and offerings. At our Ludwigshafen site in Germany, we campaigned against racism and discrimination as part of the International Weeks Against Racism.

BASF is one of approximately 150 companies that support the United Nations Global LGBTI (lesbian, gay, bi, trans and intersex) Standards of Conduct for business and has done so since 2018. The U.N. recommendations show the many opportunities companies have to contribute to positive social change. As part of pride month, employees promoted openness, acceptance and tolerance with campaigns at various sites around the world.

Diversity also relates to the company’s demographic profile, which varies widely by region within the BASF Group. Our aim is to create a suitable framework to help maintain the employability of our personnel at all stages of life and ensure the availability of qualified employees over the long term.

We also promote diversity in the selection and development of our leaders. We have set a global target to promote female leadership and aim to increase the proportion of women in leadership positions to 30% by 2030. We have made important progress toward this and continuously review our target. In the BASF Group, the global proportion of female leaders with disciplinary responsibility was 25.6% at the end of 2021 (2020: 24.3%).

In order to continuously monitor our progress toward this target, we have developed a global dashboard, which is used to regularly review the implementation status. The systematic advancement of women is also an integral part of our process for selecting senior executives.

As a signatory to the United Nations’ Women’s Empowerment Principles (WEPs), we are committed to promoting gender equality. We are also involved in other external initiatives to promote inclusion of diversity at work, such as the Chefsache initiative and the European Round Table. Employees from all regions took International Women’s Day 2021 as an opportunity to reflect on the current situation of women at BASF, celebrate successes and campaign for greater equality.

 

2030 target

 

Proportion of women in leadership positions with disciplinary responsibility

30%

Leaders and professionals in the BASF Group
  December 31, 2021 Of which women (%)
(Senior) executivesa 9,006 25.6
Professionalsb 40,030 32.5

a Employees with disciplinary leadership responsibilities
b Specialists without disciplinary leadership responsibilities

In addition to our voluntary commitment to promote women in leadership positions, in Germany, the Act on Equal Participation of Women and Men in Leadership Positions in the Private and Public Sector (Gesetz für die gleichberechtigte Teilhabe von Frauen und Männern an Führungspositionen in der Privatwirtschaft und im öffentlichen Dienst, “FüPoG I & II”) applies to listed companies or companies subject to co-determination.

FüPoG I & II not only applies to BASF SE, but also to various German BASF Group companies (see the overviews below). These companies set their own targets for the proportion of women on the respective supervisory and management boards and on the first and second levels below the management board as well as a deadline for the attainment of these targets, which they disclosed in accordance with statutory requirements.

The supervisory board of a publicly listed European stock corporation (SE) that is composed of the same number of shareholder and employee representatives must, according to section 17(2) of the SE Implementation Act, consist of at least 30% women and 30% men. Since the 2018 Annual Shareholders’ Meeting, the Supervisory Board of BASF SE comprises four women, of whom two are shareholder representatives and two are employee representatives, and eight men. The Supervisory Board’s composition meets the statutory requirements.

As a target figure for the Board of Executive Directors according to section 111(5) of the German Stock Corporation Act (AktG), the Supervisory Board determined that for the target-attainment period from January 1, 2017, to December 31, 2021, the Board of Executive Directors of BASF SE should continue to have at least one female member. This represented 12.5% on the date the target was set (based on eight members of the Board of Executive Directors). Following the entry into force of the FüPoG II, if the management board of a listed company consists of more than three persons, at least one woman and one man must be members of the management board (section 76(3a) AktG). There have been two female members of the Board of Executive Directors since the appointment of Dr. Melanie Maas-Brunner effective as of February 1, 2021. Since Wayne T. Smith’s departure from the Board of Executive Directors on May 31, 2021, the proportion of women has been 33.3% (2 out of 6 Board members).

The Board of Executive Directors also decided on new target figures for the proportion of women in the two management levels below the Board of Executive Directors of BASF SE. For the second target-attainment period that ended on December 31, 2021, these targets were 12.1% for the proportion of women in the management level directly below the Board, and 7.3% for the level below that. This corresponded to the status year-end 2016, the time these target figures were determined. At the end of the concluded target-attainment period, women made up 20.0% of the management level directly below the Board and 23.2% of the level below that. Both targets were therefore significantly exceeded. For the next target-attainment period from January 1, 2022, to December 31, 2026, the Board of Executive Directors resolved as targets the quotas achieved as of December 31, 2021: 20.0% for the proportion of women in the management level directly below the Board and 23.2% for the level below that.

For those German Group companies that are subject to co-determination, target figures have also been set in accordance with the legal requirements in sections 36, 52 (2) of the German Act on Limited Liability Companies (GmbHG). The following tables show the target figures set for the second target-attainment period, the proportion of women at the end of the second target-attainment period on December 31, 2021, and the target figures for the third target-attainment period at the German BASF Group companies subject to co-determination (excluding BASF SE). The deadline for achieving the targets has been set for December31, 2026.

Group Company Supervisory Board Management Board
  Target set for
31 Dec 2021

Status
31 Dec 2021

Target set for
31 Dec 2026
Target set for
31 Dec 2021
Status
31 Dec 2021
Target set for
31 Dec 2026
BASF Catalysts Germany GmbH

0% (0 of 3)

0% (0 of 3)

33.3% (1 of 3)

0% (0 of 3)

0% (0 of 3)

33.3% (1 of 3)

BASF Coatings GmbH

0% (0 of 12)

8.3% (1 of 12)

8,3% (1 of 12)

0% (0 of 2)

0% (0 of 2)

0% (0 of 2)1

BASF Digital Solutions GmbH

0% (0 of 3)

0% (0 of 3)

33.3% (1 of 3)

0% (0 of 3)

33.3% (1 of 3)

33.3% (1 of 3)

BASF Personal Care and Nutrition GmbH

0% (0 of 3)

0% (0 of 3)

33.3% (1 of 3)

0% (0 of 3)

0% (0 of 3)

33.3% (1 of 3)

BASF Polyurethanes GmbH

33.3% (1 of 3)

33.3% (1 of 3)

33.3% (1 of 3)

0% (0 of 1)

0% (0 of 1)

0% (0 of 1)1

BASF Schwarzheide GmbH

22.2% (2 of 9)

0% (0 of 9)2

11% (1 of 9)

0% (0 of 2)

50% (1 of 2)

0% (0 of 2)1

BASF Services Europe GmbH

33.3% (1 of 3)

33.3 % (1 of 3)

33.3% (1 of 3)

0% (0 of 2)

0% (0 of 1)

0% (0 of 1)1

Chemetall GmbH

16.7% (1 of 6)

33.3% (2 of 6)

33.3% (2 of 6)

0% (0 of 2)

0% (0 of 1)

0% (0 of 1)1

1 Since there are only one or two managing director positions in the companies and an enlargement of the management is not objectively necessary due to the size and structure of the respective company, only 0, 1 or 2 or 0%, 50% or 100% can be set as a target from the outset. The determination to 100% does not make sense, as the management would then necessarily only be filled by women and in some companies the previous managing director would subsequently have to be dismissed prematurely. The fixing of a quota of 50% for companies with two managing director positions, one of which is currently filled by a woman, is also not appropriate, because in the event of a possible change of the current managing director during the target-attainment period, which cannot be ruled out in the BASF Group due to the regular job rotation of executives, a woman would necessarily have to be appointed as successor. With targets set accordingly, a successful candidate is likely to be subject to massive speculation that she has only been appointed on the basis of the target. In order to prevent such a constellation, which would have considerable negative consequences for the working atmosphere and the acceptance of the management, a target value of 0 (0%) is set in each case. Regardless of this target, in the event of a possible replacement during the target-attainment period, a decision will be made after a comprehensive assessment of the suitability of all candidates.

2 The Supervisory Board of BASF Schwarzheide GmbH consists of 6 representatives appointed by the shareholders and 3 representatives elected by the employees. The last election of employee representatives took place in 2017, in which a woman stood for election and was also elected. Later, she resigned for personal reasons. She was automatically replaced by the (male) substitute member elected at the same time. Since the proportion of women in the workforce of BASF Schwarzheide is only 22% (as of 31.12.2021), this had a limiting influence on the appointment of women as candidates for the employee elections to the Supervisory Board. On the part of the shareholders, the assignment of Supervisory Board mandates is purely function-related or job-related, and the Supervisory Board mandates are taken over exclusively by executives from the technical and operational functions of the BASF Group, in which fewer women than men continue to work. During the target-attainment period, a female executive left the Supervisory Board due to the assumption of another position within the BASF Group and her seat was taken over by her male successor in the position in question. The target was missed for the above reasons.

Group Company 1st Level of management below Management Board
2nd Level of management below Management Board
  Target set for 31 Dec 2021 Status
31 Dec 2021
Target set for
31 Dec 2026
Target set for 31 Dec 2021

Status

31 Dec 2021

Target set for
31 Dec 2026
BASF Catalysts Germany GmbH

5%

8.3% (2 of 24)

8.3% (2 of 24)

14%

23.3% (7 of 30)

23.3% (7 of 30)

BASF Coatings GmbH

19%

33.3% (5 of 15)

33.3% (5 of 15)

8%

17.3% (9 of 52)

17.3% (9 of 52)

BASF Digital Solutions GmbH

0%

32% (8 of 25)

32% (8 of 25)

16.2%

24.6% (30 of 122)

24.6% (30 of 122)

BASF Personal Care and Nutrition GmbH

20%

29.2% (7 of 24)

29.2% (7 of 24)

17%

30.8% (16 of 52)

30.8% (16 of 52)

BASF Polyurethanes GmbH

11%

16.7% (2 of 12)

16.7% (2 of 12)

13%

20.5% (8 of 39)

20.5% (8 of 39)

BASF Schwarzheide GmbH

0%

14.3% (2 of 14)

14.3% (2 of 14)

0%

18.2% (8 of 44)

18.2% (8 of 44)

BASF Services Europe GmbH

30%

33.3% (4 of 12)

33.3% (4 of 12)

30%

61.9% (39 of 63)

30.2% (19 of 63)

Chemetall GmbH

3%

0%1

33.3% (1 of 3)

25%

8.3% (1 of 12)1

8.3% (1 of 12)

1 The company was acquired by BASF at the end of 2016 and the targets were still set on the basis of Chemetall's definition of management levels. Applying the criteria used uniformly at BASF to define the management levels, target values of 0% for the 1st management level below the management level and 9.52% for the 2nd management level would have been achieved and only the target for the 2nd management level would have been narrowly missed (9.52% vs. 8.33%). The reason for the non-achievement of the two targets is that the company is active in the automotive, aerospace, aluminum finishing and metal forming industries and mainly employs personnel in the field of production and product development. The proportion of women in these industries and occupational fields is still significantly lower than the proportion of men, which makes it difficult to identify and promote female managers.

Last Update February 25, 2022