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.

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

Key Stakeholders	Stakeholder Expectations	Key Engagement	Exemplary Results & Achievements
Employees	Attractive and fair employer Health protection Opportunities for professional development	Employee engagement: Global employee surveys Regular leadership feedback ‘Continuous Meaningful Conversations’ between leadersand employees, annual employee dialog Trust-based cooperation with employee representatives Occupational safety initiatives & networks	Employee engagement goal: More than 80% of our employees feel that at BASF, they can thrive and perform at their best, engagement index of 81% in 2022 Global target to promote female leadership, increase proportion of women in leadership positions to 30% by 2030: 27.2% female leaders with disciplinary responsibility at the end of 2022 Health Performance Index: 0,96 Regularly reviewed safety concepts, emergency systems, and crisis management structures Group-wide compliance program ensures adherence to legal regulations, company’s internal guidelines and ethical business practices 47 internal audits on adherence to compliance standards > 30,000 participants in compliance trainings
Communities	Safe, disruption-free operations Attractive jobs Support for local communities	Societal Engagement Community Advisory Panels (CAPs)	€36 m investment in Societal Engagement activities at BASF sites around the world to support future health, skills, and resources for a sustainable future Our Kids’ Labs experimental workshops in 45 countries reached around 1,2 m kids in the last 25 years to foster curiosity and excitement for science Eight new Starting Ventures projects empower people from low-income communities to improve their economic opportunities and quality of life BASF Stiftung is active in the area of international development cooperation as well as disaster relief management e.g., with an employee donation campaign which collected €4.2 m to support people in Ukraine in 2022 Cooperation with NGO Beyond Suncare to develop a sunscreen product that reduces the risk of skin cancer among vulnerable population with Albinism in Africa Community Advisory Panels offer a continuous forum for open dialog with local communities at our sites
Societal stakeholders	Responsible and trustworthy partner Production of safe products in compliance with environmental and social standards Jobs and taxes	Sustainability Lab Topic Advisory Councils Multi-stakeholder initiatives Sustainability networks	Sustainability Lab: In-depth exchange on complex sustainability topics with external experts Human Rights Advisory Council: systematic integration of external expertise to advance BASF`s human rights management Active participation in various sustainability networks and platforms (UN Global Compact, WBCSD, Alliance to End Plastic Waste (AEPW)) Co-foundation of Global Battery Alliance (GBA) – development of standards and tools to create a sustainable value chain for batteries Meaningful and systematic interaction with NGO`s and civil society Political dialog: political advocacy conducted in accordance with transparent guidelines and our publicly stated positions Regular exchange with government departments, members of parliament and other stakeholders in many countries

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.

Stakeholder Engagement

Commercial Stakeholders

Non-commercial stakeholders

Sustainability Lab

Human Rights Advisory Council

Community Advisory Panels