We create chemistry for a sustainable future
At BASF, we are passionate about chemistry and our customers. Thanks to our expertise, our innovative and entrepreneurial spirit, and the power of our Verbund integration, our innovations have decisively contributed to changing the world we live in for the better for more than 150 years. To be the world’s leading chemical company for our customers, we will grow profitably and add value to society. This is how we create chemistry for a sustainable future.
Today, the world is changing more rapidly than ever before, driven by demographic change and new digital technologies. Our customers in different industries and regions face diverse social and environmental challenges due to limited natural resources and increasing consumer demands. Chemistry is key to solving many of these challenges. By combining our unique expertise with our customers’ competence, we will jointly develop profitable, innovative and responsible solutions for these global trends.
We create chemistry for a sustainable future
Our purpose reflects what we do and why we do it: We create chemistry for a sustainable future. We pursue this purpose with our corporate strategy, which was updated in 2018. We want to contribute to a world that provides a viable future with enhanced quality of life for everyone. This is why we offer products and solutions that make the best use of available resources.
Our aspiration is to be the world’s leading chemical company. With our updated corporate strategy, which was announced in November 2018, we are targeting profitable growth. We aim to grow organically and thus will strengthen our customer focus. The Asian market plays an important role in our growth strategy. With a share of more than 40%, China is already the largest chemical market and drives the growth of global chemical production. By 2030, China’s share will increase to nearly 50%, and we want to participate in this growth. To drive forward our growth in this dynamic market, we plan to build an integrated Verbund site in Zhanjiang in the southern Chinese province of Guangdong. We also want to expand our existing joint venture with Sinopec in Nanjing.
As part of our aspiration to be the world’s leading chemical company for our customers, we want to strengthen our passion for customers throughout the entire organization. We want to grow profitably and create value for society. To achieve this, we have set ourselves ambitious financial and nonfinancial targets.
Global trends provide opportunities for growth in the chemical industry
Share of population aged 60 and over by 2050
Rapid growth in volume of data
Driven by the emerging markets by 2050
Required reduction of greenhouse gas emissions
to achieve the 2°C goal
– 70% by 2050
China the largest market:
Share of global chemical market by 2030
Growing demand for battery materials by 2025
Sources: U.N., IEA, UBS Foresight, BASF
To reach our goals and be the leading company in the chemical industry for our customers, we want to strengthen our performance in innovation and in operations as the leading chemical producer and plant operator, leverage digital ways of working across the entire company, and integrate sustainability more deeply into our business decisions. We want to strengthen our passion for our customers in all employees. We aim to strengthen our portfolio and further develop our organization to better meet customer needs using the power of our Verbund integration. We have defined six strategic action areas through which we will sharpen our customer focus. 1
1 We defined six strategic action areas in our updated corporate strategy, which was announced in November 2018. They build on the four strategic principles of the “We create chemistry” strategy – we add value as one company; we innovate to make our customers more successful; we drive sustainable solutions; we form the best team – according to global trends and challenges as well as their implications for BASF.
BASF’s success as an integrated global chemical company relies on having a strong brand. Our brand and mission are manifested in our strategy and our corporate purpose – “We create chemistry for a sustainable future” – as well as our values. “Connected” describes the essence of the BASF brand. Connectedness is one of BASF’s great strengths. Our Verbund concept – realized in production, technologies, the market and digitalization – enables innovative solutions for a sustainable future. The claim that “We create chemistry,” as stated in the BASF logo, helps us embed this solution-oriented strategy in the public perception. Our brand creates value by helping communicate its benefits for our stakeholders as well as our values.
Wherever our stakeholders encounter our brand, we want to convince them that BASF stands for connectedness, intelligent solutions, value-adding partnerships, an attractive working environment and sustainability. This contributes to our customers’ confidence and to our company value.
We are constantly developing our brand image. We regularly measure awareness of and trust in our brand, and therefore in our company. A global study conducted by an independent market research institution every two years again showed in 2018 that, in terms of awareness and trust, BASF is above the industry average in numerous countries. Our goal is to continue increasing awareness of BASF in all of our relevant markets.
BASF’s global presence means that it operates in the context of local, regional and global developments and is bound by various conditions. These include:
BASF holds one of the top three market positions in around 75% of the business areas in which it is active. Our most important global competitors include Arkema, Clariant, Covestro, DowDuPont, DSM, Evonik, Formosa Plastics, Huntsman, Lanxess, SABIC, Sinopec, Solvay, Wanhua and many hundreds of local and regional competitors. We expect competitors from Asia and the Middle East in particular to gain increasing significance in the years ahead.