Investors
Our Targets and Target Achievement 20251
For us, long-term business success means creating economic, ecological and social value, which is why we pursue measurable targets along the entire value chain. We report transparently on our progress in achieving these targets so that stakeholders can understand and evaluate our development.
Our objective is profitable growth – we have set ambitious targets for our EBITDA before special items, our cumulative free cash flow and our targeted return on capital employed (ROCE) by 2028. We continue to adhere to our shareholder distribution policy: We aim to keep the overall distribution to shareholders at least at prior-year levels through a combination of dividends and share buybacks.
We have also set ourselves comprehensive targets in the area of sustainability. For instance, regarding climate protection: We want to significantly reduce greenhouse gas emissions from our production processes (Scope 1)2 and our energy purchases (Scope 2)2 by 2030. At the same time, we are pursuing an ambitious target to reduce our specific raw materials-related emissions (Scope 3.1)3. Our long-term target is to achieve net zero for our Scope 1, Scope 2 and Scope 3.1 emissions by 2050. In addition, we want to advance sustainability in the supply chain in a targeted manner and are therefore focusing on improving the sustainability performance of suppliers with an increased risk.
With our “Winning Ways” strategy, we are continuing our efforts to steer our product portfolio even more toward sustainability. For this reason, we aim to further increase our sales of Sustainable-Future Solutions, defined as products that make a positive contribution to sustainability, by 2030. We are also aiming to increase sales of Loop Solutions – products that close or extend loops and thus support the transition to a more circular economy.
The health and safety of our employees and the protection of the environment are our highest priority. In the area of occupational and process safety, we focus on high severity injuries and incidents. We also advocate for the protection of water as a resource, the continuous improvement of water use efficiency and the reduction of emissions. We focus on our Verbund sites as well as on production sites in water stress areas.4
Furthermore, we strive to increase the number of women in leadership positions worldwide5 and to create a working environment in which our employees can thrive and perform at their best.
To underscore the importance of our targets, both the long-term and short-term variable compensation of the Board of Executive Directors and senior executives is linked to the achievement of selected financial and sustainability-related targets.
2 Scope 1 and Scope 2 (excluding the sale of energy to third parties). The emissions account for 96% of total Scope 1 and Scope 2 emissions in relation to the 2018 base year. The target includes greenhouse gases according to the Greenhouse Gas Protocol, which are converted into CO2 equivalents (CO2e). Scope 2 emissions are calculated using the market-based approach in accordance with the Greenhouse Gas Protocol. The target is aligned with limiting global warming to a global average of 1.5°C, and is thus science-based. It has not been externally audited.
3 Scope 3.1, raw materials excluding battery materials, excluding services and technical goods, excluding greenhouse gas emissions from BASF trading business. Future adjustment of the baseline in line with the Together for Sustainability guideline (TfS) possible depending on the availability of further primary data. The base year is 2022. Additional information on the calculation method.
4 We define water stress areas as regions in which more than 40% of the available water is used by industry, households and agriculture. Our definition is based on the Water Risk Atlas (Aqueduct 4.0) published by the World Resources Institute. For more information, see wri.org/aqueduct. Our water target also continues to take into account the sites that we identified as water stress sites in accordance with Pfister et al. (2009) prior to 2019, as well as water stress sites according to Aqueduct 3.0.
5 We strive to always act in accordance with the applicable local laws.