Global
Sustainability
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Global
Sustainability

Our Targets

We carry out our corporate purpose, “We create chemistry for a sustainable future,” by pursuing ambitious goals along our entire value chain. In this way, we aim to achieve profitable growth and take on social and environmental responsibility. This also helps to achieve the United Nations’ Sustainable Development Goals (SDGs).1 We are focusing on issues where we as a company can make a significant contribution, such as sustainable consumption and production, climate action or fighting hunger.

Learn more about our targets as of 2019

The new targets will apply from 2019 onward and will replace our previous goals. In this way, we want to steer our business into a sustainable future and, at the same time, contribute to the implementation of the United Nations’ Sustainable Development Goals (SDGs).

Financial targets

Grow sales volumes faster than global chemical production every year

Increase EBITDA before special items by 3% to 5% per year

Achieve a return on capital employed (ROCE) 1 considerably above the cost of capital percentage every year

Increase the dividend per share every year based on a strong free cash flow

Return on capital employed (ROCE) is a measure of the profitability of our operations. We calculate this indicator as the EBIT generated by the segments as a percentage of the average cost of capital basis.

Nonfinancial targets

Grow CO2-neutrally until 2030

Achieve €22 billion in Accelerator sales 1 by 2025

Cover 90% of our relevant spend 2 with sustainability evaluations by 2025, and have 80% of our suppliers improve their sustainability performance upon re-evaluation

More than 80% of our employees feel that at BASF, they can thrive and perform at their best

Accelerator products are products that make a substantial sustainability contribution in the value chain.
We understand relevant spend as procurement volumes with suppliers defined as relevant.

Existing nonfinancial targets

Reduce the worldwide lost-time injury rate per 200,000 working hours to ≤0.1 by 2025

Reduce worldwide process safety incidents per 200,000 working hours to ≤0.1 by 2025

Introduce sustainable water management at all production sites in water stress areas and at all Verbund sites by 2030

Increase the proportion of women in leadership positions with disciplinary responsibility to 22–24% by 2021

Our non-financial targets in the BASF report 2018

Procurement 2020 Goal Status at end of 2018 More on
Assessment of sustainability performance of relevant suppliers; 2 development of action plans where improvement is necessary 70%

60%

More...

Employees 2021 Goal Status at end of 2018 More on
Proportion of women in leadership positions with disciplinary responsibility

22-24 %

21.7%

More...

Long-term goals  

International representation among senior executives 3

Increase in proportion of non-German senior executives (baseline 2003: 30%)

40.4%

More...

Senior executives with international experience

Proportion of senior executives with international experience
over 80%

85.4%

More...

Production 2025 Goals Status at year-end 2018 More on

Reduction of worldwide lost-time injury rate per 200,000 working hours

≤0.1

0.3

More...

Reduction of worldwide process safety incidents per 200,000 working hours

≤0.1

0.3

More...

 

 

 

 

Annual goal

Health Performance Index

>0.9

0.96

More...

Product stewardship 2020 Goal Status at year-end 2018 More on
Risk assessment of products that we sell in quantities of more than one metric ton per year worldwide

>99%

91%

More...

Energy and climate protection 2020 Goals Status at year-end 2018 More on
Coverage of our primary energy demand by introducing certified energy management systems (ISO 50001) at all relevant sites 4

90%

73.0%

More...

Reduction of greenhouse gas emissions per metric ton of sales product (excluding Oil & Gas, baseline 2002) (40%) (34.2%) More...
Water 2030 Goal Status at year-end 2017 More on
Introduction of sustainable water management at all production sites in water stress areas and at all Verbund sites (excluding Oil & Gas)

100%

50.0%

More...

Products and solutions 2020 Goal Status at year-end 2016 More on
Increase the proportion of sales generated by products that make a particular contribution to sustainable development (Accelerator products)

28%

27.7%

More...

1 Sustainable Development Goals (SDGs): SDG 1 – No poverty, SDG 2 – Zero hunger, SDG 3 – Good health and well-being, SDG 4 – Quality education, senior executive status by virtue of special expertise. SDG 5 – Gender equality, SDG 6 – Clean water and sanitation, SDG 7 – Affordable and clean energy, SDG 8 – Decent work and economic growth, SDG 9 – Industry, innovation and infrastructure, SDG 10 – Reduced inequalities, SDG 11 – Sustainable cities and communities, SDG 12 – Responsible consumption and production, SDG 13 – Climate action, SDG 14 – Life below water, SDG 15 – Life on land, SDG 16 – Peace, justice and strong institutions, SDG 17 – Partnerships for the goals
Our suppliers are evaluated based on risk due to the size and scale of our supplier portfolio. We define relevant suppliers as Tier 1 suppliers showing an elevated sustainability risk potential as identified by our risk matrices and our purchasers’ assessments. We also use further sources of information to identify relevant suppliers such as evaluations from Together for Sustainability (TfS), a joint initiative of chemical companies for sustainable supply chains.

3 The term “senior executives” refers to leadership levels 1 to 4, whereby level 1 denotes the Board of Executive Directors. In addition, individual employees can attain senior executive status by virtue of special expertise.

4 The selection of relevant sites is determined by the amount of primary energy used and local energy prices; figures relate to BASF operations including the discontinued oil and gas business.