Plastics based on acrylonitrile-butadiene-styrene copolymers.
Acrylic monomers are part of the product range of the Functional Polymers division and are used among other things as starting materials in the production of polymer dispersions.
The concrete admixtures from the Admixture Systems business unit ensure optimal concrete characteristics, even under extreme conditions, for sky scrapers, complex bridge constructions and tunnels.
AgBalance® is an assessment methodology developed by BASF for the holistic measurement and analysis of sustainability in agriculture and food production. Ecological, economic and social indicators are employed to create specific recommendations for sustainable production methods. AgBalance received independent validation from global auditors in 2011.
Amflora is a genetically modified starch potato developed by BASF which produces an optimized starch composition for industrial applications.
These are companies in which significant influence can be exercised over their operating and financial policies, and which are not subsidiaries, joint ventures or joint operations. In general, this applies to companies in which BASF has an interest of 20% to 50%.
Audits are a strategic tool for managing standards. During a site or plant audit, clearly defined criteria are used to create a profile for topics pertaining to environment, safety or health, for example.
Automotive OEM Coatings
Coating systems for vehicle bodies that protect the vehicle from corrosion (cathodic dip) and gravel and chippings (primer), provide color (basecoat) and offer protection from environmental factors (topcoat).
Automotive Refinish Coatings
Coatings systems for the repair of vehicles under the trademarks Glasurit® and R-M®.
A backup line is a confirmed line of credit that can be drawn upon in connection with the issue of commercial paper if market liquidity is not sufficient, or for the purpose of general corporate financing. It is one of the instruments BASF uses to ensure it is able to make payments at all times.
Barrel of oil equivalent (BOE)
A Barrel of Oil Equivalent is an international standard for comparing the thermal energy of different fuels. A BOE is the equivalent of one barrel of crude oil or 6,000 cubic feet or 169 cubic meters of natural gas.
Base of Pyramid
The base (or bottom) of the pyramid refers to the lowest income group in the world economic pyramid. The concept is used to describe business models which actively target this demographic as, for example, customers, suppliers or distributors – thus combining the pursuit of entrepreneurial opportunities with endeavors to improve quality of life.
BASF Plant Science
Founded in 1998, the goal of the Research and Technology Verbund with over 700 employees is to create more efficient farming, renewable resources and better nutrition. Crop design and metanomics are units in this Verbund.
BDO stands for 1,4-Butanediol and is a BASF intermediate. BDO and its derivatives are used for producing plastics, polyurethanes, solvents, electronic chemicals and elastic fibers.
Biocatalysis is the use of enzymes as biological catalysts for the targeted application, acceleration or control of chemical reactions. The high selectivity of enzyme catalysts allows for simplified processes and lower production costs.
Biotechnology includes all processes and products that make use of living organisms, such as bacteria and yeasts, or their cellular constituents.
Breakthrough innovations are radically new products, applications, processes, services or business models that have a significant potential competitive advantage and a disruptive effect on the market. They can also be achieved by combining individual innovations and existing technologies to create a new, complex system. Breakthrough innovations open up new high-tech fields, markets or industries, generating value added and benefits for society.
Part of the production complex in Port Arthur, Texas. Here, three successive chemical processes are used to obtain butadiene, alkylate gasoline and propylene from a C4 stream (a mixture of various hydrocarbons each containing four carbon atoms) from the steam cracker.
Capital expenditures (capex)
We define capex as additions to property, plant and equipment excluding additions from acquisitions, IT investments, capitalized exploration, restoration obligations and right-of-use assets arising from leases.
Carbon Disclosure Project
The Carbon Disclosure Project represents 385 institutional investors worldwide. The organization collects information on addressing the challenges of climate change and the strategies on climate change of the 1,550 largest corporations worldwide.
Carbon management bundles our global activities and a long-term research and development program to reduce our greenhouse gas emissions. The objective is to achieve our climate protection target and set the course for low-carbon chemical production.
The Catalysts division comprises the environmental technologies, process technologies as well as Materials Services, which provides both the BASF Catalysts business and customers of BASF with precious metals and services.
The international nonprofit organization CDP (formerly the Carbon Disclosure Project) analyzes environmental data of companies. The CDP’s indexes serve as assessment tools for investors.
The circular economy concept describes the transition away from a linear model of “take-make-dispose” to a system of closed loops powered by renewable energy. Core elements include re-using resources, avoiding waste, using products efficiently, and recycling products at the end of their service life.
Clean Development Mechanism
The Clean Development Mechanism (CDM) is one the flexible mechanisms for the reduction of greenhouse gas emissions as laid down in the Kyoto Protocol. In CDM, companies from industrialized or transitional countries participate in emission reducing and quality examining projects in developing and transitional countries, and in doing so acquire tradable emission vouchers.
Substances with carcinogenic (cancer causing), mutagenic (genetically altering) and reprotoxic (reproduction toxic) effects.
CO2 equivalent is a parameter describing the effect of greenhouse gas emissions. A factor known as the global warming potential (GWP) shows the effect of the individual gases compared with CO2 as the reference value.
CO2 scrubbing is another name for CO2 capture. After being compressed the captured, CO2 is transported and stored in underground repositories.
The Coatings division comprises the automotive refinish coatings,industrial coatings and decorative paints business units.
Coil coatings are specialty coatings that can be applied to steel and aluminum bands creating a composite material that incorporates the traits of the metal and the coating material. The composite material is especially resistant to corrosion and can be easily formed, for instance. Coil coating sheets are mainly used in the construction industry.
Commercial paper program
The commercial paper program is a framework agreement between BASF and banks regarding the issuing of debt obligations on the financial market (commercial paper). The commercial paper is issued under a rolling program for which the terms can be determined individually. This requires a good rating.
BASF’s Competency Model is derived from its strategic principles and corporate values and translates these into specific day-to-day behavioral standards. It is applicable worldwide, creating a common framework for the conduct of all BASF employees and leaders to enable us to reach our shared goals. The eight competencies are: Drive Innovation, Collaborate for Achievement, Embrace Diversity, Communicate Effectively, Drive Sustainable Solutions, Develop Self and Others, Act with Entrepreneurial Drive, Demonstrate Customer Focus.
Compliance is an important element of corporate governance. It refers to the company’s behavior in accordance with laws, guidelines and voluntary codices.
Concrete additives accelerate or slow the hardening of concrete in order for it to be used optimally in warm and cold climates. The additives further increase the strength of concrete and thus add to the durability of construction work.
Conflict minerals/conflict mines
Conflict minerals describe minerals listed in the U.S. Conflict Minerals Trade Act. These include tantalite (coltan), cassiterite (tin ore), wolframite, gold, and their derivatives. A few conflict mines raise suspicion of being used to finance armed conflicts in the Democratic Republic of Congo or neighboring states.
The Construction systems business unit offers, among other things, building products, sports and industrial flooring as well as façade systems.
We understand customers as all external companies (sold-to parties) that had contracts with the BASF Group in the business year concerned under which sales were generated.
Consumer goods sector
The consumer goods sector includes, for example, the textiles and leather industry, the electric industry and domestic appliance manufacturing, as well as the paper industry and the personal care and cleaners sector.
Corporate governance refers to the entire system of managing and overseeing a company. This includes the organization of a company, its principles and guidelines as well as all internal and external regulatory and monitoring mechanisms.
The Committee of Sponsoring Organizations of the Treadway Commission is a voluntary privatesector organization dedicated to improving the quality of financial reporting through business ethics, effective internal controls and corporate governance.
Cost of capital
The cost of capital reflects shareholders’ expectations regarding return (in the form of dividends or share price increases) and interest rates payable to providers of debt. To ensure its lasting success, a company should earn at least the return on invested capital expected by shareholders and creditors on a sustained basis.
Coatings for the interior and exterior of buildings.
The dividend yield is the "return" received by a shareholder in the form of a dividend in relation to the year-end share price. It is calculated by dividing the per-share dividend by the year-end share price and multiplying by 100.
The Dodd-Frank Act issued in 2010 comprises accounting and disclosure obligations for publicly listed U.S. companies regarding the use of certain raw materials that come from the Democratic Republic of Congo or its bordering countries. The companies must prove whether the materials they use are from conflict mines in these areas. The definition of conflict minerals as per the Dodd-Frank Act includes the following materials and their derivatives: Columbitetantalite (coltan), cassiterite, wolframite and gold.
Dow Jones Sustainability World Index (DJSI World)
The Dow Jones Sustainability World Index (DJSI World) is the world’s most important sustainability index. It lists the top 10% of the largest 2,500 companies which appear in the Dow Jones Global Index in terms of economic, ecological and social criteria.
A plant that is downstream of the steam cracker in the chemical value-adding process.
Drilling describes the creation of boreholes to explore for and develop deposits.
Earnings per Share
The amount earned by BASF in euros per share based on the weighted number of shares.
Earnings before Interest and Taxes. At BASF, EBIT corresponds to the income from operations.
EBIT after cost of capital
EBIT after cost of capital is calculated by deducting the cost of capital from the EBIT of the operating divisions. The cost of capital thereby reflects the shareholders’ expectations regarding return (in the form of dividends or share price increases) and interest payable to creditors. If the EBIT after cost of capital has a positive value, we have earned a premium on our cost of capital.
Earnings before interest, taxes, depreciation and amortization (EBITDA): At BASF, EBITDA corresponds to income from operations before depreciation and amortization (impairments and write-ups).
The EBITDA margin is the margin that we earn on sales from our operating activities before depreciation and amortization as a percentage of EBITDA. It is calculated as income from operations before depreciation, amortization and valuation allowances as a percentage of sales.
The Eco-Efficiency Analysis is a method developed by BASF for assessing the economic and environmental aspects of products and processes. The aim is to compare products with regard to profitability and environmental compatibility.
Companies simultaneously rely on, and have an impact on, ecosystem services, such as the conservation of air, water and soil quality. Biodiversity – or the variety of life forms on our planet – serves as a basis of and indicator for the integrity of ecological systems.
Economies of Scale
Cost advantages derived from modern world-scale plants.
Econsense, Forum for Sustainable Development of German Business e.V., is an association of leading, globally active companies and organizations in German business specializing in sustainable development and corporate social responsibility (CSR). BASF is one of the forum’s founding members. Econsense’s top concern is to encourage a political framework that fosters sustainable innovation related to business, environment and society.
Companies simultaneously rely on and have an impact on ecosystem services. These include, for example, the conservation of air, water and soil quality. Biodiversity, which is understood as the diversity of life forms on our planet, serves as a basis of and indicator for the integrity of ecological systems.
We define the emerging markets as Greater China, the ASEAN countries (Brunei, Indonesia, Malaysia, Myanmar, Cambodia, Laos, the Philippines, Singapore, Thailand, Vietnam), India, Pakistan and Bangladesh; Central and South America; eastern Europe; the
Middle East, Turkey and Africa.
Emollients are nurturing oil components that give skin a velvety feel. They are a common ingredient in skin and hair care products, such as creams and hair masks.
The development of new materials and technologies to convert and store energy. Energy management also refers to the responsible use of fossil fuels, for example through the development of energy-saving materials such as insulation.
Enhanced oil recovery (EOR)
Enhanced oil recovery (EOR) methods, also called tertiary recovery or tertiary production methods, are used to increase the recovery factor from oil reservoirs. Different technologies are employed depending on reservoir conditions; a distinction is generally made between thermal and chemical EOR and miscible gas flooding, which makes use of gases such as carbon dioxide.
Epoxy resin is a thermosetting plastic of high cohesiveness and chemical durability. Depending on temperature and amount of the hardener, the hardening of this plastic can take from a few minutes to up to several hours. A further characteristic is the high amount of cohesiveness compared to its low weight.
An Exploration and Production Sharing Agreement is the prevalent type of contract between a national oil company and an international oil company in the exploration and production of hydrocarbons.
The equity method is used to account for shareholdings in joint ventures and associated companies. Based on the acquisition costs of the shareholding as of the acquisition date, the carrying amount is continuously adjusted to the changes in equity of the company in which the share is held.
Enterprise Risk Management is a supplement to the original COSO model that was published in 2004.
European Water Stewardship (EWS) Standard
The European Water Stewardship Standard enables businesses and agriculture to assess the sustainability of their water management practices. The criteria are: water abstraction volumes, water quality, conservation of biodiversity and water governance. The European-wide standard came into force at the end of 2011 and was developed by NGOs, governments and businesses under the direction of the independent organization European Water Partnership (EWP).
Exploration refers to the exploration and investigation of an area in the search for mineral resources such as crude oil or natural gas. The exploration process involves using suitable geophysical processes to find structures that may contain oil and gas then proving a possible find by means of exploratory drilling.
Production of films from plastic granules using pressure and heat.
The Financial Accounting Standards Board is a U.S.-based body that is accountable to the U.S. Securities and Exchange Commission (SEC). It prepares and publishes Statements of Financial Accounting Standards (SFAS).
Fermentation is the transformation of organic substances by means of enzymes, bacteria, yeasts or fungi. When these microorganisms are optimized through biotechnological processes, fermentation can serve as an alternative to chemical processes that is both efficient and conserves resources.
Field development is the term for the installation of production facilities and the drilling of production wells for the commercial exploitation of oil and natural gas deposits.
In the Fine Chemicals division, we develop, produce and market highvalue products for the cosmetics and pharmaceutical industries, as well as for human and animal nutrition. Our primary products are aroma chemicals and UV-filters, pharmaceutical active ingredients and excipients as well as vitamins and carotenoids.
Formulation describes the combination of one or more active substances with excipients like emulsifiers, stabilizers and other non-active components in order to improve the applicability and effectiveness of various products, such as cosmetics, pharmaceuticals, agricultural chemicals, paints and coatings.
Free cash flow
Free cash flow is cash provided by operating activities less payments related to property, plant and equipment and intangible assets.
An active ingredient that kills fungi or inhibits their growth (for example in crops).
A binding agreement between two partners to buy or sell a specific amount of an exactly defined commodity or financial instrument at a particular price on a stipulated future date.
Genome editing refers to a series of new molecular biological methods to make specific changes in the genome. Naturally occurring processes are used to make small changes to an organism’s genes to modify a specific characteristic. Such techniques have great potential for innovative solutions in healthcare, agriculture and industrial applications, for example.
In the United Nations Global Compact network, nongovernmental organizations, companies, international business and employee representatives, scientists and politicians work on aligning global business with the principles of sustainable development.
Global Product Strategy (GPS)
The Global Product Strategy aims to establish global product stewardship standards and practices for companies. The program aims to improve the safety management of chemical substances and to support governments in the introduction of local chemical regulations.
Global Reporting Initiative (GRI)
The Global Reporting Initiative is a multistakeholder organization. It was established in 1997 with the aim of developing a guideline for companies’ and organizations’ voluntary reporting on their economic, environmental and social activities.
Goodwill is a term used to describe a company’s value. It represents the difference between the actual value of a company’s assets and the purchase price paid. Because goodwill takes potential earnings into account, it may exceed the book value.
Greenhouse Gas Protocol (GHG Protocol)
The Greenhouse Gas Protocol, used by companies from different sectors, NGOs and governments, is a globally recognized standard to quantify and manage greenhouse gas emissions. The reporting standards and recommendations for the implementation of projects to reduce emissions are jointly developed by companies, governments and NGOs under the guidance of the World Resources Institute and the World Business Council for Sustainable Development.
BASF combines the important technology-driven issues of the future in five growth clusters: energy management, raw material change, nanotechnology, plant biotechnology and white biotechnology.
Hexamethylene diisocyanate is a raw material used in the production of automotive, industrial and plastic coatings.
Health Performance Index (HPI)
The Health Performance Index (HPI) is an indicator developed by BASF to provide a more detailed insight into the application of health management. It comprises five components: confirmed occupational diseases, medical emergency planning, first aid, preventive medicine and health promotion.
An active ingredient used to destroy weeds.
HPPO is the acronym describing technology to produce propylene oxide (PO) from hydrogen peroxide (HP). HPPO technology is more environmentally friendly and economically viable than conventional PO methods of production, because no by-products are produced besides water. PO is an intermediate, for example, in the production of polyurethane.
IAS stands for International Accounting Standards.
The International Financial Reporting Interpretations Committee is a committee that publishes proposed guidance on IFRS and IAS.
International Financial Reporting Standards (IFRS) (until 2001: International Accounting Standards, IAS) are developed and published by the International Accounting Standards Board (IASB) headquartered in London, United Kingdom. In accordance with the IAS Regulations, IFRS are mandatory for listed companies headquartered in the European Union since 2005.
ILO Core Labor Standards
The ILO Core Labor Standards are set out in a declaration of the International Labor Organization (ILO), comprising eight conventions that set minimum requirements for decent working conditions.
Coating materials for industrial goods with the exception of vehicles.
The Inorganics division produces raw materials such as ammonia, sulfuric acid and nitric acid, as well as the electrolysis products chlorine and sodium hydroxide. The division also produces innovative specialties such as electronic chemicals, impregnating resins and powder injection molding technologies.
An active ingredient used to destroy harmful insects.
The Intermediates division develops, produces and markets a comprehensive range of intermediates worldwide. It operates out of 14 production sites in Europe, Asia, North and South America. The most important of the division’s more than 600 products include amines, diols, polyalcohols and acids. Of which more than 25 % are for captive use within the BASF.
The International Standard on Assurance Engagements 3000 (ISAE 3000) is published by the International Audit and Assurance Standards Board (IAASB). It provides guidelines for comprehensive audits, which contain non-financial data, for example for the audits of sustainability reports.
ISO 9001 is an international standard developed by the International Organization for Standardization (ISO) that determines minimum requirements for a quality management system for voluntary certification.
ISO 14001 is an international standard developed by the International Organization for Standardization (ISO) that determines the general requirements for an environmental management system for voluntary certification.
ISO 14045 is an international standard developed by the International Organization for Standardization (ISO) that determines the general requirements for the eco-efficiency analysis.
ISO 19011 is an international standard developed by the International Organization for Standardization (ISO) that also serves as a guide for auditing management systems, for example for occupational health and safety, energy, quality and environmental management.
ISO 27001 is an international standard developed by the International Organization for Standardization (ISO) that determines the general requirements for an information security management system for voluntary certification.
ISO 26000 SR
ISO 26000 SR is a guideline that provides organizations with recommendations and guidance on social responsibility (SR).
ISO 50001 is an international standard developed by the International Organization for Standardization (ISO) that determines the general requirements for an energy management system for voluntary certification.
IUCN categories of protected areas
The International Union for Conservation of Nature (IUCN) is an international non-governmental organization that aims to raise awareness for the protection of species and to contribute to a sustainable use and conservation of resources. IUCN classifies the protected areas of the earth. Categories I, II and III comprise “Strict Nature Reserve and Wilderness Area,” “National Park” and “Natural Monument or Feature.”
A joint arrangement refers to joint ventures and joint operations, and describes a jointly controlled arrangement of two or more parties. This arrangement exists if decisions about relevant activities require the unanimous consent of all parties sharing control.
A joint operation is a joint arrangement in which the parties that have joint control have direct rights to the assets and obligations for the liabilities relating to the arrangement. For joint operations, the proportional share of assets, liabilities, income and expenses are reported in the BASF Group Consolidated Financial Statements.
A joint venture is a joint arrangement in which the parties that have joint control of a legally independent entity have rights to the net assets of that arrangement. Joint ventures are accounted for using the equity method in the BASF Group Consolidated Financial Statements.
Key Performance Indicator (KPI)
A key performance indicator is a quantifiable measurement that can be used to track the progress in achieving important goals within a company.
The Kyoto Protocol is a supplement to the United Nations Framework Convention on Climate Control. Its main goal is to reduce emissions of greenhouse gases.
Liquefied Petroleum Gas (LPG)
Liquefied natural gases, e.g., propane, butane and propane-butane blends, are used in the heating market, as an alternative feedstock for cracker operations and for other chemical processes.
Long-term incentive program (LTI)
The long-term incentive program is a share price-based compensation program primarily for senior executives of the BASF Group and members of the Board of Executive Directors. The program aims to tie a portion of the participants’ annual variable compensation to the long-term, absolute and relative performance of BASF shares by making an individual investment in the company’s stock.
BASF uses a materiality analysis to identify and assess sustainability topics. This takes into account the expectations and demands of external stakeholders, as well as the expertise of members of the Stakeholder Advisory Council and the assessments of our employees from various units. An analysis of various data sources expands on and verifies these findings.
MDI stands for diphenylmethane diisocyanate and is one of the most important raw materials for the production of polyurethane. This plastic is used for applications ranging from the soles of high-tech running shoes and shock absorbers for vehicle engines to insulation for refrigerators and buildings.
Million British thermal unit (mmBtu)
The British thermal unit (Btu) is a unit of energy observed in the Anglo-American measuring system. It is used for indicating values such as the energy content of gas. One mmBtu (million British thermal units) is equal to approximately 1,003 cubic feet of gas or 28 cubic meters of gas.
MEA (high-temperature Membrane Electrode Assembly)
The MEA is the core of a fuel cell. This is where hydrogen and air react to form water, generating electrical energy and heat in the process.
Metabolic Profiling is the parallel and sensitive analysis of a broad spectrum of small-molecule metabolites from a given biological sample. Metabolites comprise components such as amino acids, fatty acids, hormones, sugars and other substance classes.
In chemistry, migration refers to the movement of molecules on the surface of plastics or in surrounding materials. Plastics with low migration values hinder or prevent the migration of, for example, additives, which makes them especially suitable for applications that come into contact with food or drinking water.
Monitoring systems and tools serve to measure and ensure the adherence to standards. One area that is monitored is our voluntary commitments, such as the adherence to human rights and internationally recognized labor standards.
MRF (magnetorheological fluids)
MRFs are liquids that exhibit adjustable flow behavior. Using an external magnetic field, the flow properties of MRF can be varied from solid to liquid in milliseconds. They are particularly suitable for applications in which power has to be controlled and transmitted on a continuous, variable basis.
MSCI World Chemicals Index
The MSCI World Chemicals Index is a stock index that includes the world’s biggest chemical companies. It measures the performance of the companies in the index in their respective national currencies, thus considerably reducing currency effects.
Megawatt hour: a measuring unit for energy
Electric megawatt hour: a measuring unit for electrical energy
Free trade zone between the United States, Canada and Mexico; established in the North American Free Trade Agreement. This economic region is one of BASF's four business regions.
The International Organization for Standardization defines nanomaterials as materials with one or more external dimensions on a nanoscale or with internal structure or surface structure on a nanoscale. For regulatory purposes, there are additional definitions for nanomaterials worldwide.
Characterization, generation and utilization of structures and systems that are smaller than one hundred nanometers.
Naphtha is petroleum that is produced during oil refining. Heavy naphtha is the starting point for gasoline production. Light naphtha is the most important feedstock for steam crackers.
NMVOC (Non Methane Volatile Organic Compounds)
VOCs (volatile organic compounds) are organic substances that, at low temperatures, are present in the air as gas. These include some hydrocarbons, alcohols, aldehydes and organic acids. NMVOCs are VOCs from which methane is excluded.
The Organization for Economic Cooperation and Development is an international body headquartered in Paris, France.
The Occupational Health and Safety Assessment Series (OHSAS) comprises, among other things, the standard OHSAS 18001 which includes a management system for occupational safety. This system can be integrated into an existing quality and environmental protection management system and certified accordingly.
Oil & Gas
Our oil and gas operations are conducted by Wintershall AG and its subsidiaries and include exploration and production of crude oil and natural gas, crude oil and natural gas trading, and the leasing of natural gas storage and transport facilities.
International standard for comparing the thermal energy of different fuels.
We use our “opportunity-finding method” to identify main drivers for sustainability in the relevant value chains and for our customers. This helps us develop and take advantage of business opportunities arising from sustainability issues.
“Organic Electronics Forum” cluster of excellence
The “Organic Electronics Forum” cluster of excellence is a collaborative network of companies, research institutes and universities which is sponsored by the German Federal Ministry for Education and Research.
Patent Asset Index
The Patent Asset Index measures the strength of a company’s patent portfolio. It is made up of two factors: (1) portfolio size (the number of worldwide active patent families) and (2) competitive impact, which is the combination of technology relevance and market coverage (weighted by market size).
The payout ratio shows what proportion of earnings is distributed in the form of a dividend. It is calculated by dividing the total dividend paid by net income and multiplying by 100.
PBT chemicals are substances that fulfill the three following criteria: (1) persistent – they remain in the environment for long periods of time and degrade either slowly or not at all; (2) bioaccumulative – they build up or accumulate in an organism’s tissue or the food chain; (3) toxic – they are poisonous. PBT chemicals are considered Substances of Very High Concern by the European chemicals directive, REACH.
Peak sales potential
The peak sales potential of the Agricultural Solutions pipeline describes the total peak sales generated for individual products in the research and development pipeline. Peak sales are the highest sales value to be expected from one year. The pipeline comprises innovative products that have been on the market since 2019 or will be launched on the market by 2029.
The Performance Polymers division produces engineering plastics for use in the automotive and electronics industries, for example, as well as polyamide and polyamide intermediates.
BASF aims to optimally align business models with customer needs and the market situation. The company initiative “perspectives” supports the BASF business units through, among other things, specific coaching and the exchange of experiences in the areas of marketing and sales.
Photovoltaics convert sunlight directly into electricity via solar cells. Organic photovoltaics are solar cells made of organic materials.
An area of biotechnology in which methods of traditional cultivation are optimized using methods from molecular biology and biochemistry. Plants can be developed for more efficient agriculture, a healthier diet as well as for use as renewable resources.
Crop protection products that increase crop yield and improve quality beyond disease and insect control.
THF stands for tetrahydrofuran and is a starting compound for Polytetrahydrofuran (PolyTHF®), an important component for the production of elastomer fibers for textiles. Elastomer fibers are used in sports clothing, for example.
The Polyurethanes division is one of the world's leading producers of polyurethanes. Our product range includes the entire spectrum of basic polyurethane products, tailormade polyurethane systems and polyurethane specialties. Polyurethanes are used, for example, as rigid or flexible foams for domestic appliances and mattresses, and as specialty plastics for the automobile and footwear industries.
Process safety incidents (PSI)
Process safety incidents (PSI) is a worldwide harmonized industry metric used to report events involving the release of a substance or energy where this exceeds defined thresholds. BASF has used the criteria and reporting thresholds developed by the International Council of Chemical Associations (ICCA) since 2018.
New or improved products and applications, which have been on the market for less than five years.
Propylene oxide (PO)
Propylene oxide (PO), a very reactive compound, is generated by the oxidation of propylene and is used as basic chemical for further processing in the chemical industry.
Ramsar Sites were defined in the Ramsar Convention of 1971. These are protected Wetlands of International Importance, such as lagoons, moors, lakes, rivers and marshlands.
Raw Material Change
Analysis and evaluation of processes to use natural gas, coal and renewable raw materials for chemical value-adding chains.
REACH is a European Union regulatory framework for the registration, evaluation, authorization and restriction of chemicals, and was implemented gradually by 2018. Companies are obligated to collect data on the properties and uses of produced and imported substances and to assess any risks.
Renewable raw materials are products made from biomass such as sugars, starches and vegetable oils that are not used as food or feed, but as feedstock or to generate warmth, electricity or fuels.
The reserve-to-production ratio of oil and gas reserves indicates how many years proved reserves will last at current rates of production. It is assumed that production remains constant and there is no development of new reserves. The reserve-to-production ratio is calculated by dividing total proved reserves of crude oil and natural gas at year end by annual production.
Responsible Care® refers to a worldwide initiative by the chemical industry to continuously improve its performance in the areas of environmental protection, health and safety.
Profits generated can be used in two ways: distribution to shareholders or retention within the company.
Return on assets
Return on assets describes the return we make on the average assets employed during the year. It is calculated as income before taxes and minority interests plus interest expenses as a percentage of average assets.
Return on Equity after Tax
This describes the return we make on the average equity used during a fiscal year. It is calculated as income from minority interests as a percentage of average equity.
Return on Operating Assets
The return on operating assets describes the return made by an individual segment or the BASF Group on its allocated assets. It is calculated as income from operations as a percentage of average operating assets.
Return on Sales
The return on sales describes the return we make from our operations as a percentage of sales. It is calculated as income from operations as a percentage of sales.
Return on capital employed (ROCE) is a measure of the profitability of our operations. We calculate this indicator as the EBIT generated by the operating divisions as a percentage of the average cost of capital basis. The average cost of capital basis corresponds to the operating assets of the segments used to determine the cost of capital plus the customer and supplier financing not included there and is calculated using the month-end figures in each case.
BASF’s S.E.T. initiative helps customers to quantify and improve the sustainability, eco-efficiency and traceability of products in their value-adding chain. This comprehensive offer includes strategic sustainability consulting, an eco-efficiency analysis and the implementation of a traceability system along the entire value-adding chain.
Selective Catalytic Reduction (SCR) technology is used to convert harmful nitrogen oxide, which is found in the exhaust flow of heavy duty diesel engines, into water vapor and nitrogen, a natural constituent of the air.
SEEbalance® is the SocioEcoEfficiency analysis developed by BASF. It can be used to evaluate and compare the environmental impact, costs and social aspects of products and manufacturing processes. SEEbalance® makes sustainable development measurable and manageable for companies by combining the three dimensions of sustainability – economy, environment and society – in an integrated product assessment tool.
Seed Treatment Products
Seed treatment products include crop protection agents and are applied with specific technologies directly onto the seed. This protects crops in the emerging stages against fungal diseases and harmful insects.
The social business BASF Grameen Ltd. serves a social purpose. It should cover its own costs and recoup the partners’ initial investment. Any additional profits are reinvested fully in the social business.
Special items arise from the integration of acquired businesses, restructuring measures, impairments, gains or losses resulting from divestitures and sales of shareholdings, and other expenses and income that arise outside of ordinary business activities.
Spot market (cash market)
A spot market is a market where an agreed-upon deal, including delivery, acceptance and payment, occurs immediately, as opposed to forward contracts, where the delivery, acceptance and payment occurs at a point in time after the conclusion of the deal.
Stakeholder is the term referring to persons or groups whose interests are interlinked with those of a company in a variety of ways. BASF’s stakeholders include shareholders, business partners, employees, neighbors and society.
A large plant in which steam is used to "crack" naphtha (petroleum). The resulting petrochemicals - above all, ethylene and propylene - are the starting materials used to manufacture most of BASF's products.
The production of the precursor styrene is primarily for captive use (backward integration). Styrenics are used in many areas, for example, in the construction, packaging, automotive, electrical and leisure industries.
Substances and Products
BASF sells a wide range of products from its own production as well as merchandise. Products can be made of a single substance or a mixture of different substances.
Substitution refers to the use of one substance in place of another in order to reduce risks to people and/or the environment in a specific application.
The objective of sustainable development is to meet the economic, environmental and social needs of society without harming the development opportunities of future generations.
The objective of sustainable development is to meet the economic, environmental and social needs of society without harming the development opportunities of future generations.
Sustainable Solution Steering
We use Sustainable Solution Steering to review and guide our portfolio in terms of sustainability. The four categories – Accelerators, Performers, Transitioners and Challenged – indicate how our products and solutions already comply with sustainability requirements and how we can increase their contribution.
A swap is an agreement between two parties to exchange goods or payment flows in the future. In an interest swap, a fixed (variable) interest rate is exchanged for a floating (fixed) rate for an agreed nominal amount.
The Task Force on Climate-related Disclosures (TCFD) established by the G20 Financial Stability Board promotes the disclosure of information and data relevant to climate change by companies, and develops corresponding recommendations. The objective is to improve market participants’ understanding of material climate-relevant risks and enable them to better assess the opportunities and risks of climate change. BASF supports the recommendations and is involved in the work of the Task Force.
Toluene diisocyanate (TDI) is a raw material for the production of polyurethane. It is used primarily in the automotive industry (for example, in seat cushions and interiors) and the furniture industry (for example, for flexible foams for mattresses or cushioning, or in wood coating).
Our four global technology platforms Polymer Research, Chemicals Research & Engineering, Specialty Chemicals Research and Plant Biotechnology Research are at the center of our Know-How Verbund.
Tetrahydrofuran is a starting compound for Polytetrahydrofuran (PolyTHF®), a component for the production of elastic fibers.
Tier 1 suppliers
“Tier” is used in combination with a number (Tier 1, Tier 2, etc.) and indicates a supplier’s position in the supply chain. Tier 1 suppliers are suppliers that deliver directly to producing companies. Suppliers usually work together with other suppliers, which are categorized as Tier 2, Tier 3, etc. based on their role in the value chain.
Gas trapped in extremely low-permeable (tight) formations.
Delayed adjustment of natural gas prices to the movement in oil prices.
Together for Sustainability (TfS)
Global initiative of various companies from the chemical industry for the global standardization of supplier evaluations to improve sustainability in the supply chain.
Thermoplastic polyurethanes are specialty plastics used in a wide range of applications, e.g., in the automotive, sportswear and footwear industries.
The Training Verbund is a cooperation between BASF and small to midsize companies. The goal is to secure additional apprenticehips with partner companies in the Rhine Neckar Region.
Traits are commercial plant characteristics, such as an inherent resistance to certain herbicides or an inherent defense against certain insects.
TUIS is a German transport accident information and emergency response system jointly operated by around 130 chemical companies. The member companies can be reached by the public authorities at any time and provide assistance over the telephone, expert on-site advice or special technical equipment.
U.N. Millennium Development Goals
In 2000, the member states of the United Nations adopted eight global development goals. The goals are measured by means of indicators and are to be reached by 2015. These include the fight against extreme poverty and hunger, the reduction of child mortality and environmental sustainability.
UNESCO protected area
UNESCO protected areas, or World Heritage Sites, are natural sites of exceptional value. These important habitats can be home to endangered plant and animal species.
A value chain describes the successive steps in a production process: from raw materials through various intermediate steps, such as transportation and production, to the finished product.
Value to Society
The Value to Society approach was developed by BASF in cooperation with external experts to measure and assess in monetary terms the economic, ecological, and social impacts of its business activities along the entire value chain.
In the BASF Verbund, production facilities and technologies are intelligently networked, with high-output chemical processes that use energy and resources efficiently. The by-products of one plant serve as feedstock elsewhere, creating efficient value chains – from basic chemicals to high value-added solutions such as coatings or crop protection products. Our Verbund concept – realized in production, technologies, the market and digitalization – enables innovative solutions for a sustainable future.
VFA-based cationic polymers
VFA stands for vinylformamide, a starting material for water-soluble, cationic polymers. VFA-based cationic polymers are used in the paper industry to raise efficiency in production processes.
Volatile organic compounds (VOC)
VOCs are substances of organic origin that exist as gases in the air at low temperatures. They include certain hydrocarbons, alcohols, aldehydes and organic acids. The use of volatile organic compounds is regulated by the VOC Solvents Emissions Directive of the European Union.
We calculate the water consumption of the BASF Group as the sum of evaporation in cooling processes, water content in sales products, and other water use at the sites.
Water stress areas
The most important factors leading to water scarcity are low precipitation and high water abstraction rates. We previously defined water stress areas as areas in which 60% or more of the water available is used by industry, household and agriculture. From 2019 onward, we will expand our definition of water stress areas in accordance with the new Global Reporting Initiative (GRI) standards. In the future, we will report on water stress areas as regions in which 40% or more of available water is used. Our assessment is based on Aqueduct 3.0 (WRI, 2019). Our sustainable water management goal also takes into account all sites that we defined prior to 2019 as sites in water stress areas in accordance with Pfister et al. (2009), as well as the Verbund sites.
White biotechnology is an area of biotechnology, also called industrial biotechnology, which uses microorganisms and/or enzymes to produce chemical products that are utilized in many levels of the value chain in the chemical industry.
WINGAS GmbH & Co. KG
WINGAS GmbH & Co.KG is a joint venture company with our Russian partner Gazprom. At the end of 2008, BASF held 50% plus one share of WINGAS through its 100% subsidiary Wintershall Holding AG. WINGAS is an European company active in natural gas trading, storage and distribution. Its customers include regional and communal gas suppliers, industrial companies and power plant operators.
Large production plants in which products can be manufactured on a world scale. The more a plant produces, the lower the fixed costs per metric ton of product (see also: economies of scale). BASF is therefore committed to cost-effective large-scale plants of this kind in all major economic regions.
1.4-Butanediol is an intermediate of BASF. BDO and its derivatives are used for producing plastics, polyurethanes, solvents, electronic chemicals and elastic fibers.
A completely synthetic alcohol used, for example, in the production of plasticizers.
Starting product in the production of plasticizers and auxiliaries for chemical and technical industry.