We create value
Based on our purpose “We create chemistry for a sustainable future”, we want to contribute to a world that provides a viable future with enhanced quality of life for everyone. But is there a way to measure this?
BASF has developed a new method with external experts to perform the first monetary assessment of the economic, ecological, and social impacts of its business activities along the value chain: the “Value to Society” approach.
We want to measure the value proposition of our actions along the entire value chain, aware that our business activities are connected to both positive and negative impacts on the environment and society. We strive to increase our positive contribution to society and minimize the negative effects of our business activities.
Our Value-to-Society approach in a nutshell
- We show how chemistry is enabling business to generate sustainable growth.
- We have a macro-societal perspective on our economic, social, and environmental benefits and costs along the value chain.
- We visualize our significant net positive Value-to-Society with our partners.
- We share our approach, experiences and learnings with our stakeholders and standard setting communities.
- We have a pragmatic, efficient, auditable and transferable approach.
Why does BASF apply the Value-to-Society approach?
We want to better understand the economic, social and environmental impact of our activities and their interdependencies along our value chains. To make our impacts on society more tangible and comparable, we measure and express them in monetary terms. This transparency enables the integrated character of our actions for more informed decision making and thereby contributes to BASF’s long-term success.
The approach supports us with:
- Progress monitoring over time: Our Value-to-Society approach offers a comprehensive way to assess and understand our contribution to a sustainable future from a macro-perspective. The annual monitoring of our progress will support us to improve our economic, social and environmental benefits and costs to society.
- Demonstrating value contribution: Our Value-to-Society assessment reveals our impact along the value chain and demonstrates how chemistry enables sustainable growth. Improving our impacts is key to strengthen our license to operate.
- Informed decision making: Our approach adds a macro-societal perspective to current assessments by evaluating impacts on society. Aspects like the comparability of financial and pre-financial aspects along the value chain allow us to make better informed decisions that take various business impacts into account.