GHG Emissions (SASB Code: RT-CH-110a.1)
Carbon dioxide: 17,234 million metric tons
Methane: 0.034 million metric tons CO2 equivalents
Nitrous oxide: 0.418 million metric tons CO2 equivalents
Hydrofluorocarbons: 0.034 million metric tons CO2 equivalents
Sulfur hexafluoride: 0.001 million metric tons CO2 equivalents
Around 56% of the emissions are covered by ETS/carbon tax systems*.
Climate protection is very important to us and is an important part of our corporate strategy. On March 26, 2021, BASF announced that it has set itself new, more ambitious goals on its journey to climate neutrality and wants to achieve net zero emissions by 2050. Based on the most recent progress in developing low-emission and CO2-free technologies, BASF is also significantly raising its medium-term 2030 target for reductions in greenhouse gas emissions: BASF wants to reduce its greenhouse gas emissions worldwide by 25 percent compared with 2018 – and to achieve this despite targeted growth and the construction of a large Verbund site in South China. Excluding the effects of the planned growth, this means cutting CO2 emissions in half in the current business by the end of this decade. To achieve this, we have adopted comprehensive carbon management.
In connection with our climate protection target, we made Group-wide CO2 emissions one of our most important key performance indicators at the beginning of the 2020 business year. This makes emissions even more important to the operational and strategic steering of the BASF Group.
Our climate protection activities are based on a comprehensive analysis of our emissions. We report on greenhouse gas emissions in accordance with the Greenhouse Gas Protocol as well as the sector-specific standard for the chemical industry. Sharp increases in our greenhouse gas emissions, due for example to the startup of large-scale plants, are progressively offset. We assess investments and acquisitions with respect to the impact on our climate protection target. If, for technical or economic reasons, our carbon management activities cannot achieve our CO2 emission reduction targets, we will also consider taking short-term external offsetting measures such as purchasing certificates.
Since 2004, we have participated in the international non-profit organization CDP’s program for reporting on data relevant to climate protection. BASF achieved a score of A– in CDP’s rating for 2021, thus attaining Leadership status again. Companies on the Leadership level are distinguished by factors such as the completeness and transparency of their reporting. They also pursue comprehensive approaches in managing the opportunities and risks associated with climate change as well as emissions reduction strategies to achieve company-wide goals.
BASF does not report PFC and NF3, since there are no significant emissions.
News release: BASF presents roadmap to climate neutrality
* Will be updated with the issuance of the CDP Climate Report 2022.
GHG Emissions (SASB Code: RT-CH-110a.2)
Discussion of long-term and short-term strategy or plan to manage scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets
By 2030, we want to reduce greenhouse gas emissions from our production sites (excluding emissions from the sale of energy to third parties) and our energy purchases by 25% compared with 2018. Our long-term goal is net zero greenhouse gas emissions by 2050 (Scope 1 and 2). In 2021, our emissions reported under these targets amounted to 20.2 million metric tons of CO2 equivalents (2020: 20.8 million metric tons of CO2 equivalents).
We were able to reduce emissions by around 3% year on year despite significantly higher production volumes due to the increased use of renewable energy and measures to improve energy efficiency and optimize processes. Lower ammonia production due to the high price of natural gas also reduced emissions.
We are intensely pursuing our climate protection targets with investments of up to €4 billion by 2030. Our global activities to reduce greenhouse gas emissions are bundled in our carbon management, which comprises five strategic levers: We are increasingly meeting our energy needs from renewable sources (gray-to-green lever). We are increasingly relying on energy recovery to produce steam (power-to-steam lever). We are working to further improve the energy and process efficiency of our plants (continuous opex lever). We are increasingly replacing fossil resources with bio-based raw materials (bio-based feedstocks lever). And together with partners, we are pioneering nearly carbon-free production processes, especially for emission-intensive basic chemicals (new technologies lever).
Furthermore, our new organizational structure aims to drive forward our climate protection targets and carbon management activities with even greater focus and speed: The Corporate Strategy & Sustainability unit in the Corporate Center will continue to develop targets and track global target achievement, while the Net Zero Accelerator unit, which was launched at the beginning of 2022, will focus on accelerating the implementation of existing and new cross-company projects to reduce emissions. The emphasis is on low-carbon production technologies, the circular economy and renewable energies. Both units report directly to the Chairman of the Board of Executive Directors. This ensures that climate protection-relevant aspects are integrated into strategic decision-making processes as well as into core business activities. In parallel, our operating divisions are working on division-specific projects to reduce emissions, supported by the global service units.
More Information on our new Net Zero Accelerator unit: BASF is accelerating the implementation of its CO2 reduction targets
More Information on Carbon Management: Our Carbon Management
As an energy-intensive company, we take responsibility for the efficient use of energy and global climate protection. We are committed to the Paris Climate Agreement. Our innovative products reduce greenhouse gas emissions in many areas. At the same time, we are working to significantly reduce our own carbon footprint with our carbon management.
Air Quality (SASB Code: RT-CH-120a.1)
Air emissions of the following pollutants:
(1) Total nitrogen oxides (NOX; excluding N2O),
(2) Total sulfur oxides (SOX),
(3) Volatile organic compounds (VOCs), and
(4) Hazardous air pollutants (HAPs)
(5) Carbon monoxide (CO)
(1) NOX: 11,450 metric tons
(2) SOX: 1,864 metric tons
(3) VOCs: 4,988 metric tons nonmethane volatile organic compounds (NMVOC)
(4) HAPs: included in VOCs
(5) CO: 3,951 metric tons
BASF records substances that can have a negative impact on health and the environment. These substances are assigned to VOCs and published as totals. BASF records those substances where emissions are expected in the process and which must be measured at the request of the authorities due to their hazard potential.
Energy Management (SASB Code: RT-CH-130a.1)
(1) Total energy consumed
(2) Percentage grid electricity
(3) Percentage renewable
(4) Total self-generated energy
(1) (58,844,000 MWh energy consumption + 5,406,000 MWh conversion fuel consumption from LHV to HHV) * 3.6 = 231.3 million gigajoules
(2) grid electricity import for own consumption / total energy consumption: 6,363,000 MWh / 64,250,000 MWh = 9.9%
(3) total renewable energy / total energy consumption: 2,396,000 MWh / 64,250,000 MWh = 3.7%
(4) Self-generated steam (consumed): 52,466,000 t = 39,350,000 MWh (conversion factor 0.75 MWh/t steam)
Total self-generated energy (consumed): 8,912,000 MWh electricity + 39,350,000 MWh steam = 48,261,000 MWh -> 173.7 million gigajoules
BASF Report 2021: Energy and Climate Protection, p. 128
As part of our Carbon Management Program, we aim to increase the proportion of renewable energy in the electricity purchased for our production sites.
In total, 88 sites worldwide (2020: 19) were already partially or fully powered by emission-free energy at the end of 2021.
Furthermore, we are currently pursuing more than 250 technical and organizational measures to reduce energy consumption and increase competitiveness. Our employees are an important source of optimization ideas in this regard. For instance, suggestions for improve-ment submitted by our employees in 2021 enabled us to avoid around 12,000 metric tons of CO2 at the Ludwigshafen site in Germany alone.
To generate our own steam and power, we mainly use natural gas (80.3%) and substitute fuels (17.4%). These are residues from chemical production plants that cannot be reused in the BASF Verbund. We cover more than 60% of our electricity demand with gas and steam turbine plants in highly efficient combined heat and power plants.
Compared with separate methods of generating steam and electricity, we saved 15.0 million MWh of fossil fuels and avoided 3.0 million metric tons of carbon emissions in 2021. In 2021, internally generated power in the BASF Group had a carbon footprint of around 0.24 metric tons of CO2 per MWh of electricity and was below the national grid factor at most BASF Group locations.
More Information on Carbon Management: Our Carbon Management
Water & Wastewater Management (SASB Code: RT-CH-140a.1)
(1) Total water withdrawn
(2) Total water consumed, percentage of each in regions with high or extremely high baseline water stress
(1) 1,695 million cubic meters
Breakdown (million cubic meters):
Surface water/freshwater: 1,308
Brackish water/seawater: 259
Drinking water: 20
Reusable wastewater from third parties: 3
Water produced: 5
1% of total water abstraction in water stress areas
(2) 72 million cubic meters, 16% of which in water stress areas
Definition of water stress areas: all areas in which more than 40% of available water is used by industry, households and agriculture.
Water & Wastewater Management (SASB Code: RT-CH-140a.2)
Number of incidents of non-compliance associated with water quality permits, standards, and regulations
Water & Wastewater Management (SASB Code: RT-CH-140a.3)
Description of water management risks and discussion of strategies and practices to mitigate those risks
The responsible use of water as a resource is a core element of our Responsible Care Management System and an important part of our commitment to the United Nations’ Sustainable Development Goals (SDGs). This is also reflected in our position paper on water protection, which we published in 2021.
Introducing and implementing sustainable water management has been a cornerstone of our strategy for many years now. Our focus here is on our Verbund sites and on production sites in water stress areas. The aim is to protect water as a resource, to use it as efficiently as possible through recirculation, and to continuously reduce wastewater and emissions. We consider the quantitative, qualitative and social aspects of water use. In the final assessment of the CDP Water Report 2021, BASF again achieved leadership status with an A- rating.
We pursue our goal by applying the European Water Stewardship standard, which rests on four principles: sustainable water abstraction, maintaining good water quality, preserving conservation areas, and ensuring continuous improvement processes.
BASF has various procedures for identifying and assessing water-related risks (direct operations, supply chain and in other stages of the value chain). Examples: WRI Aqueduct, COSO Enterprise Risk Management Framework, Alliance for Water Stewardship Standard, European Water Stewardship (EWS) Standard, Environmental Impact Assessment, Life Cycle Assessment.
As part of sustainable water management, our sites regularly assess the water situation in the catchment area. This raises awareness of potential risks and impacts for the population such as water scarcity. Based on the assessments conducted until the end of 2021, we did not identify any activities with a significant impact on water availability and quality at any site.
Our goal is to introduce sustainable water management at our Verbund sites and at all production sites in water stress areas by 2030, covering 89% of BASF’s total water abstraction. We achieved 53.5% of our target in 2021 (2020: 46.2%). Sustainable water management was introduced at 7 additional sites in 2021 (2020: 6).
More examples for contextual issues, which are considered in water-related risk assessments of BASF: CDP Water Report 2021, p. 38-42*
*Will be updated with the issuance of the CDP Water Report 2022.
Hazardous Waste Management (SASB Code: RT-CH-150a.1)
Amount of hazardous waste generated; percentage recycled
0.97 million tons of waste for disposal
0.66 million tons recovered waste
Total: 1.63 million tons
Instead of the term “physical recovery,” BASF uses the term “recycled.”
Percentage of hazardous waste generated that was incinerated: 77.7%
0.52 million tons (with energy recovery) + 0.75 million tons (without energy recovery) =
1.27 million tons