BASF’s answers to the CDP Questionnaire Climate Change 2022
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Investors
A recognized leader in ESG
BASF shares are particularly attractive for investors looking for businesses with strong performance regarding the environment, society and governance (ESG). In the analyses of leading ESG rating agencies, BASF is often recognized as benchmark within the chemical industry. They specifically highlight our integrated sustainability reporting, business ethics and the development of sustainable products.
Current ratings
We actively participate in a wide array of ESG ratings. Below is an overview of our current ratings, underlining our position as a leader in sustainability.
Ranking |
BASF rating |
Last update |
CDP
|
A- (Leader) A (Leader) A- (Leader) |
December 13, 2022 |
FTSE4Good |
Included in the FTSE4Good Index Series | July 24, 2023 |
ISS ESG |
Prime Status | October 18, 2023 |
MSCI ESG |
A | August 30, 2023 |
Morningstar Sustainalytics |
25.1 points (overall strong ESG risk management; among top 3 peers in diversified chemicals) | April 12, 2023 |
Vigeo Eiris |
60 points | October 31, 2023 |
The non-profit organization CDP has again ranked BASF as one of the world’s leading companies for its measures and transparent reporting on water and forest management as well as climate protection. BASF achieved the top rating A in the CDP assessment for sustainable water management and was rated A- in the other two categories.
BASF once again achieved an “A-” rating on CDP’s climate list. BASF has been participating in CDP’s reporting on climate protection-relevant data since 2004 and thus informs relevant stakeholders transparently about its climate protection strategy and CO2 reduction measures. Among other things, the assessment considers the transparency of emissions reporting, the handling of risks and opportunities arising from climate change, the climate protection strategy and CO2 reduction measures.
Based on data reported through CDP’s 2022 Water Security questionnaire, BASF is one of 103 companies that achieved an ‘A’ – out of several thousand companies scored. BASF is introducing sustainable water management at all relevant production sites by 2030. This includes the major Verbund sites and sites in water stress areas. CDP’s assessment takes into account how transparently companies report on their water management activities and how they reduce risks such as water scarcity. CDP also evaluates the extent to which product developments can contribute to sustainable water management for customers of the companies assessed.
BASF was evaluated by CDP for the third time for its efforts in forest protection and was ranked A-, as in the previous years. BASF is aware of the importance of protecting forests for the well-being of the environment and society. Its position paper on forest protection sets out BASF’s commitment to preserving biodiversity in areas of High Conservation Value such as High Carbon Stock forest areas and peatlands in the procurement of renewable raw materials. The CDP assessment is conducted based on detailed insights into the palm value chain and activities that impact ecosystems and natural habitats.
Please find the BASF responses to CDP below.
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BASF has been listed in FTSE4Good Index Series since its launch in 2001
BASF was again listed in the FTSE4Good Index Series in 2023. Only companies that meet stringent criteria in social, environmental and corporate governance (ESG) and manage to continuously confirm or develop these in regularly conducted assessments are listed in these indices.
ISS ESG has rated BASF again in the category Prime. Prime Status is awarded to leaders in the respective industry that succeeded in the rating process according to industry-specific criteria in terms of social and environmental compatibility. Among other things, BASF received special recognition for having addressed material sustainability topics such as business ethics, environmental management system and energy efficiency with a comprehensive set of measures and processes.
In the 2023 MSCI ESG ratings, BASF scored an “A.” The analysts highlighted that BASF is present in clean tech markets and has a robust carbon mitigation strategy. In addition, governance risks were perceived as relatively low.
BASF belongs to the best category for “diversified chemicals” with a medium ESG risk and was recognized for its strong risk management, e.g., in the areas of CO2, emissions, wastewater and waste as well as occupational health and safety.
In the rating by Vigeo Eiris, the ESG rating unit of Moody’s, BASF received a total score of 60. Vigeo Eiris awarded high scores to BASF, amongst others, in the areas product safety, social and environmental standards in the supply chain and environmental strategy. The raters saw potential for improvement, for example, in the areas of atmospheric emissions and the impact of its products and services.
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