Leadership & Governance Index

Content

Management of Legal & Regulatory Environment (SASB Code: RT-CH-530a.1)

Accounting metric

Discussion of corporate positions related to government regulations and/or policy proposals that address environmental and social factors affecting the industry

Information

We support and promote responsible, accountable, transparent and democratic processes that benefit society at large. Hence we respect the roles and responsibilities of the institutions and organizations we engage with and are open about the interests we seek to advance. Our interaction with politicians is based on evidence. We are open for dialog with all stakeholders. BASF is not affiliated with any political party, individual members of parliament or incumbents or candidates for a political office. BASF has a view on issues, not on political parties or individual policy makers.

We commit ourselves to responsible, honest and transparent action based on our values and principles. We are committed to ensuring that our dialogue and advocacy is in compliance with our Global Code of Conduct, and the rules and principles set out in our policy.

The Governance, Risk Management, Compliance (GRC) Policy, applicable throughout the Group, forms the framework for risk management and is implemented by the operating divisions, the service and research units and the regions according to their specific business conditions. A catalog of opportunity and risk categories helps identify all relevant financial and sustainability-related opportunities and risks relating to our targets as comprehensively as possible. We derive the sustainability-related opportunities and risks from the materiality analysis. We also systematically assess opportunities and risks with effects that cannot yet be measured in monetary terms, such as climate and reputational risks. To reflect these, risks for companies in connection with the transition to a low-emission economy (transition risks) as well as physical risks as defined by the Task Force on Climate-related Financial Disclosures (TCFD), among other, were added to this catalog. We use standardized evaluation and reporting tools for the identification and assessment of risks. The aggregation of opportunities, risks and sensitivities at division and Group level using a Monte Carlo simulation helps us to identify effects and trends across the Group.

Our Group-wide Compliance Program aims to ensure adherence to legal regulations and the company’s internal guidelines. Our global employee Code of Conduct firmly embeds these mandatory standards into everyday business.

Source

BASF Report 2023: Opportunities and Risks, pp. 174–176

BASF website: Political Communications & Advocacy (basf.com)

Critical Incident Risk Management: Operational Safety, Emergency Preparedness & Response (SASB Code: RT-CH-540a.1)

Accounting metric

Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Incident Severity Rate (PSISR)

Information

We use the number of High Severity Process Safety Incidents (hsPSI) per 200,000 working hours as a reporting indicator. We have set ourselves the target of reducing High Severity Process Safety Incidents to a rate of no more than 0.10 per 200,000 working hours by 2030.1 In 2023, we recorded 0.05 hsPSI per 200,000 working hours worldwide. The rate of all process safety incidents in the BASF Group was 0.3 in 2023 (2022: 0.3). We investigate every incident in detail, analyze causes and use the findings to derive suitable measures. We share the findings in our global network in the interest of continuous improvement.

Source

BASF Report 2023: Process Safety, p. 128

Critical Incident Risk Management: Operational Safety, Emergency Preparedness & Response (SASB Code: RT-CH-540a.2)

Accounting metric

Number of transport incidents

Information

To evaluate transportation safety, we systematically record transportation incidents according to defined criteria. We use the number of transportation incidents as a reporting indicator. In 2023, we recorded 16 transportation incidents worldwide (2022: 25). A particular focus is incidents involving goods spillages that could lead to significant environmental impacts. These include dangerous goods leaks in excess of 200 kilograms on public traffic routes, provided transport was arranged by BASF. We recorded no incidents in 2023 with spillage of more than 200 kilograms of dangerous goods (2022: 1). There have therefore been no incidents with a significant impact on the environment (2022: 0).

Source

BASF Report 2023: Transportation Safety, p. 130

Comment/Additional Information

More information on Transportation and Safety: Distribution Safety