While enabling our customers’ green transformation, we keep committed to our climate protection targets
Sustainability
Enabling the green transformation of our customers
Our ambition is to be the preferred chemical company to enable the green transformation of our customers. With our diversified portfolio and our product and process innovations, we want to grow profitably and create value for our shareholders. At the same time, we are driving the change towards a stronger performance culture. We integrate sustainability aspects into our strategy, our business and our valuation, management and remuneration systems. This principle is also anchored in our corporate purpose: We create chemistry for a sustainable future.
Transformation
Sustainability is a central component of our strategy. We remain committed to climate protection targets and support our customers in the green transformation with innovative products and processes.
Humanity is facing major challenges such as climate change and dwindling natural resources. Chemistry can make a more sustainable future possible. Our goal is profitable growth through innovations that make our customers successful. Our solutions help to use raw materials more efficiently and protect the environment.
We also see this as the main driver of our profitable growth: our aim is for customers to be successful in their respective markets thanks to our innovations. Our products, solutions and technologies help to protect the environment and the climate by helping to use raw materials more efficiently, reduce waste and enable healthy, affordable food and climate-friendly mobility. By providing our customers with the best solutions and processes, we also want to grow profitably and create value for our shareholders.
Climate protection targets
We are pursuing a profitable path for change and are firmly committed to achieving our climate targets for 2030 and 2050. Climate protection is a key component of our corporate strategy.
As an energy-intensive company, we bear responsibility for global climate protection and support the Paris Climate Agreement. We continue to strive to achieve our climate targets with our strategy.
Our climate protection targets are based on a transition plan. This provides for a gradual reduction in emissions through renewable energies, efficiency improvements, low-emission steam generation and new climate-friendly technologies. We invest a three-digit million amount in these measures every year and regularly adapt the transition plan to technological and economic developments. We will only consider external offsetting measures for our Scope 1 and Scope 2 as a temporary measure in the medium term if our activities were not to make the desired contribution to reducing emissions. Whether we achieve our targets naturally also depends on global economic and regulatory conditions as well as technological progress.
Compared to the base year 2018, we plan to reduce greenhouse gas emissions from our production processes (Scope 1) and our energy procurement (Scope 2) by 25% by 2030. This corresponds to a reduction of around 60% compared to 1990. We also have ambitious Scope 3 targets for specific raw material-related emissions.
By 2030, we want to specifically reduce these in relation to purchasing volumes. Our long-term goal is net-zero greenhouse gas emissions by 2050 (Scope 1, 2 and 3). By 2030, we expect demand for sustainable products to exceed supply, which could lead to an increasing willingness to pay. This will contribute to profitable growth for BASF.
With the increasing growth in the markets for sustainable products, we will be able to expand and apply the new technologies that we are currently testing in pilot projects. We plan to increase the share of Sustainable Future Solutions in BASF Group sales from 41% (2023) to over 50% (2030) and to increase Loop Solutions sales from €5 billion in 2023 to €10 billion by 2030. We expect most of the major investments for our green transformation to be made after 2030.
1 Scope 1 and Scope 2 (excluding sale of energy to third parties); greenhouse gas emissions according to Greenhouse Gas Protocol, converted into CO2 equivalents (CO2e)
2 Corresponds to a reduction from 1.64 to 1.39 kilograms of CO2 equivalents per kilogram of raw material bought; Scope 3.1, raw materials excluding battery materials, excluding services, technical goods and greenhouse gas emissions from BASF trading business. In 2024 we adjusted the baseline in line with the TfS guideline due to the availability of further primary data.
3 TripleS: Sustainable Solution Steering methodology for steering the product portfolio based on sustainability criteria; not included: platinum group metals within ECMS, strategically non-relevant businesses such as IT services, licenses, etc.
4 “Others” comprises health and safety, pollution reduction, biodiversity, water protection and zero hunger.