Sustainability

Stakeholder Engagement

For BASF, it is important to have a continuous dialog with various stakeholder groups. We leverage the expertise of our stakeholders in our own advisory bodies, global networks and worldwide initiatives. The importance and long tradition of stakeholder engagement for BASF can be seen, for example, in the fact that we have been a founding member of the U.N. Global Compact since more than 20 years ago. As member of the U.N. Global Compact, we consistently support responsible business and the Sustainable Development Goals. In addition, BASF has established a new stakeholder engagement format with the Sustainability Lab. The Sustainability Lab is a further development of the Stakeholder Advisory Council. In the Sustainability Lab, BASF is now deepening specific sustainability topics, because sustainability topics are becoming ever more complex. At the first meeting, the participants worked out what BASF and other stakeholders can do to contribute to a successful energy transition.

The following table now shows numerous examples of our stakeholder engagement as well as selected results.

Commercial Stakeholders

Key Stakeholders	Stakeholder Expectations	Key Engagement	Formats Exemplary Results & Achievements
Customers	Innovative and sustainable solutions Reliable partner Cost effectiveness	~60 strategic customer networks Customer-specific business models based on i.e., TripleS methodology	Product Carbon Footprints of ~45,000 sales products calculated to create CO₂ transparency for us and our customers Offering innovative products and solutions supporting our customers to achieve their sustainability goals Quality Management System focused on customer satisfaction Electric concept car “Oli” – new car concept for sustainable and affordable mobility Pursuing decentralized certification approach for business units and subsidiaries according to international standards, such as ISO 9001, GMP, considering our customers’ requirements
Suppliers	Fair and reliable business relationships Support in complying with our Supplier Code of Conduct	Supplier CO₂ Management Program Supplier Code of Conduct Audits & Trainings Sustainability-oriented supply chain due diligence management	79 supplier site audits conducted on BASF behalf according to Together for Sustainability (TfS) framework; 1,900 participants at TfS trainings Cobalt for Development Program: improving artisanal mining working conditions as well as living conditions for surrounding communities in Congo Responsible Lithium Partnership with BMW, Mercedes Benz Group, Volkswagen, Fairphone and GIZ Cooperation with The Estée Lauder Companies, RSPO and Solidaridad in Indonesia to expand RSPO-certified supplier base for palm-based resources
Investors	Attractive dividend yield Transparency and risk minimization Strong long-term share performance	Events with institutional investors, rating agencies and retail investors (one-on-one meetings, roadshows, conferences, informational events) Active participation in ESG ratings	Participation in numerous ESG events and conference calls in 2022 Virtual Investor Update event on corporate climate targets and steps to reduce product-related emissions in March 2022 R&D Webcast on contribution of white biotechnology to sustainability in November 2022 CDP disclosure: Leadership status achieved in 2022 in “Climate,” “Water” and “Forests” categories Renewed Prime status in the ISS ESG rating from Institutional Shareholder Services (ISS) Sustainalytics’ ESG Risk Rating: BASF belongs to the best category for “diversified chemicals” with a medium ESG risk “Investors’ Darling” prize for sustainability communication from Manager Magazin

Non-commercial stakeholders

Sustainability Lab

An inherent part of our sustainability management is the continuous exchange with our stakeholders. In order to involve our stakeholders more intensively and to dive deeper into specific sustainability topics, we established the Sustainability Lab as new stakeholder engagement format in 2023.

Cropped shot of a group of businesspeople discussing something on a laptop

Human Rights Advisory Council

The Human Rights Advisory Council promotes a constructive exchange on human rights, helps us to better understand different perspectives and address conflicting goals

Community Advisory Panels

As a company in the chemical industry, we are aware of the particular responsibility we have towards our neighbors. Thus we set up neighborhood dialogues, mostly at our larger production sites.