BASF’s answers to the CDP Questionnaire Climate Change 2020
More and more investors want to invest in stocks of companies that conduct their business in accordance with the principle of sustainable development. This means that investment decisions are based on environmental and social aspects as well as economic performance. BASF shares are particularly attractive for such investors.
The inclusion in sustainability indices and rankings is a confirmation of our excellent performance concerning environmental, social and governance issues. Rating agencies have particularly highlighted our integrated sustainability reporting, business ethics and the development of sustainable products.
BASF has participated in CDP’s program for reporting on data relevant to climate protection since 2004. In 2020, BASF achieved a score of “A–”, thus attaining Leadership status again. In the scoring framework used by CDP in 2020, BASF is ranked among the best 25% of the participating chemical companies. In their assessment of the company’s climate protection efforts and disclosure, the analysts identified, for instance, some potential for further development in the area of power supply from renewable energy sources. In order to achieve the company's climate goal of CO2-neutral growth by 2030, BASF is continuously optimizing existing processes, increasingly using renewable energy sources and developing fundamentally new low-emission production processes. The company is bundling these activities in an ambitious carbon management program.
In the CDP assessment for sustainable water management, BASF achieved the top grade of “A” and thus Leadership status. The 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 assessed companies. BASF is introducing sustainable water management at all relevant production sites. This includes the major Verbund sites and sites in water stress areas. In 2020, BASF for the first time participated in the CDP’s “Forest” assessment. BASF received the grade “A-”. As an actor in various value chains, BASF is committed to ending deforestation in these supply chains. One of BASF's measures to protect the forests is its voluntary commitment to palm oil: BASF has committed to source 100 percent of its palm (kernel) oil from certified sustainable sources by 2020.
BASF continued to be included in the MSCI ESG Ratings in 2019 with a score of AA. The analysts highlighted BASF’s Verbund system as a key competitive advantage for resource-efficient processes. BASF’s emissions intensity for greenhouse gases and air pollutants – one of the lowest compared with competitors in the chemical industry – was also assessed positively.
BASF is also again listed in the FTSE4Good Index Series. 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. BASF is top class in terms of ESG among chemical companies belonging to the index.
Oekom Research AG 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 its climate protection strategy with clear greenhouse gas reduction targets as well as the comprehensive Sustainable Solution Steering™ method for determining the sustainability performance of products in their respective specific application.