BASF Report 2023

How We Create Value

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Business model

Our corporate purpose

We create chemistry for a sustainable future

Strategy

With our six strategic focus areas, we focus on our customers and aim to grow profitably.

  • Innovations
  • Sustainability
  • Production
  • Digitalization
  • Portfolio
  • Employees

Our values

  • Creative
  • Open
  • Responsible
  • Entrepreneurial

Segments

The business models of our six segments contribute to solving the challenges of our customers.

  • Chemicals
  • Materials
  • Industrial Solutions
  • Surface Technologies
  • Nutrition & Care
  • Agricultural Solutions
Business Review by Segment

Our corporate purpose

We create chemistry for a sustainable future

Strategy

With our six strategic focus areas, we focus on our customers and aim to grow profitably.

  • Innovations
  • Sustainability
  • Production
  • Digitalization
  • Portfolio
  • Employees

Our values

  • Creative
  • Open
  • Responsible
  • Entrepreneurial

Segments

The business models of our six segments contribute to solving the challenges of our customers.

  • Chemicals
  • Materials
  • Industrial Solutions
  • Surface Technologies
  • Nutrition & Care
  • Agricultural Solutions
Business Review by Segment

Our Customers

Business model

Inputs

We use a wide range of resources to implement our customer-focused strategy

Financial

Financial

We use a wide range of resources to implement our customer-focused strategy

47.3

%

Equity ratio

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>900,000

Shareholders

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Innovations

Innovations

We use a wide range of resources to implement our customer-focused strategy

~10,000

R&D employees

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€2.1

billion

R&D expenses

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Production

Production

We use a wide range of resources to implement our customer-focused strategy

€5.2

billion

Capex

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20

%

Electricity from renewable sources

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Environment

Environment

We use a wide range of resources to implement our customer-focused strategy

~1

MMT

Renewable raw materials

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1,518

million m3

Total water abstraction

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Employees

Employees

We use a wide range of resources to implement our customer-focused strategy

111,991

Employees around the world

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€11.0

billion

Personnel expenses

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Partnerships

Partnerships

We use a wide range of resources to implement our customer-focused strategy

>70,000

Suppliers

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~78,000

Customers

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Outputs

We focus on material sustainability topics and evaluate the opportunities and risks of our actions

Financial

Financial

€3.8

billion

EBIT before special items

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€3.0

billion

Proposed dividend payment to shareholders1

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Innovations

Innovations

~1,000

New patents worldwide

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>€10

billion

Sales of products that have been on the market for up to five years

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Production

Production

~45,000

Sales products

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5.7

MMT

CO2 emissions avoided through the Verbund and combined heat and power generation

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Environment

Environment

>1,400

Mass balance products based on alternative raw materials

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79

%

Water demand recirculated

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Employees

Employees

79

%

Engagement index according to 2023 employee survey

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28.4

%

Women in leadership positions

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Partnerships

Partnerships

668

Suppliers screened by BASF as part of Together for Sustainability

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~50

Strategic customer networks

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Outcomes 2

Relevant external impact factors for our company’s success as well as positive and negative impacts of our business activities:

Economic

Economic

Relevant external impact factors

  • Customer demand and requirements
  • Investment readiness
  • Capital market trends
  • State of the economy, competitive conditions, investment climate

Impacts of our business activities

  • Growth, progress and value creation
  • Our customers’ competitiveness and innovative strength
  • Digital transformation of the industry
  • Attractive dividend yield
  • Reduced value creation for the state, customers, investors and employees

How we maximize positive impacts / minimize negative impacts:

  • Corporate strategy
  • Portfolio management
  • Cost management and cost of capital optimization
  • Differentiated Steering (from 2024 onward)

Environmental

Environmental

Relevant external impact factors

  • Challenges/opportunities arising from climate change
  • Availability of/access to renewable resources
  • Sustainability targets of our customers
  • Regulations on product safety

Impacts of our business activities

  • Contribution to climate protection/climate change adaptation
  • Reduced use of resources and avoidance of waste
  • Environmentally friendly and safe products
  • The emission of CO2 and other greenhouse gases
  • Resource consumption and nonrecyclable waste
  • Potential misuse or spillage of products

How we maximize positive impacts / minimize negative impacts:

  • Programs for carbon management and the circular economy
  • Water and energy management
  • Measures to protect biodiversity
  • Responsible Care Management

Social

Relevant external impact factors

  • Demand for sustainable products, willingness to pay
  • Stakeholder trust
  • Interest of qualified personnel and leaders
  • Labor, environmental and social standards

Impacts of our business activities

  • Improved quality of life
  • Attractive jobs and diversity
  • Taxes and competitive wages and salaries
  • Integration, help to overcome social challenges
  • Procurement of raw materials with risk of violation of standards
  • Personnel adjustments

How we maximize positive impacts / minimize negative impacts:

  • Supplier management
  • Sustainability projects in the supply chains
  • Compliance Program and Code of Conduct
  • Employee training programs

Impact

We achieve long-term business success by creating value for our shareholders, our company, the environment and society

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1Based on the dividend proposed by the Board of Executive Directors and the number of outstanding shares as of December 31, 2023 (892,522,164)

2The outcomes category shows examples of impacts on our business and impacts that our activities may have as well as the measures we take.

Last Update Feb 23, 2024