Sustainability at BASF

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1 Sustainability at BASF

2 BASF The Chemical Company We create chemistry for a sustainable future Our chemicals are used in almost all industries We combine economic success, social responsibility and environmental protection. Sales 2011: 73,497 million EBIT 2011: 8,586 million Employees (as of December 31, 2011): 111,141 Platzhalter für Bild In 2011, BASF filed for around 1,050 new patents worldwide 6 Verbund sites and around 370 production sites 2

3 Sustainability a crucial issue for our future. AVAILABILITY RESOURCES DEMAND + Planet annual regeneration capacity We consume more than the Earth can regenerate Demand of Earth resources Fonte: Accenture. 3

4 Demographic challenges set the stage for the future of the chemical industry Nine billion people in 2050 but only one earth Resources, Environment & Climate Food & Nutrition Quality of life Chemistry as enabler 4

5 Our purpose We create chemistry for a sustainable future Platzhalter für Bild 5

6 How BASF works for Sustainability Triple Bottom Line FINANCIAL ENVIROMENT SOCIETY SUSTAINABILITY Sustainable development has been defined as the balance of economic success, ecological protection and social responsibility (Ref: BASF Position on Sustainability)

7 Sustainability is a Journey, Not a Destination There is no Sustainable Product or Process There are more sustainable alternatives There are sustainable improvements Validated Eco-Efficiency Analysis method 7

8 How can we reduce emissions? 8

9 9

10 Care Chemicals Division Nutrition Ingredients 10

11 How can we contribute to emission savings? 11

12 12

13 BASF Corporate Carbon Footprint

14 Life-Cycle Analysis Raw Materials and Energy Production Production Basic Chemicals Production End- Products Recycling/Disposal Use Phase 14

15 Environmental Categories Environmental impact over the entire life cycle* Consumption of Energy Emissions Toxicity Potential Risk Potential Consumption of Raw Materials Land Use Cumulative energy utilization plus remaining energy content Fossil and renewable resources are included Described by categories - Air - Water - Solids Definition for hazardous materials used by EU law Maximum possible hazard used Risk assessment approach Based on published statistical data (e.g. insurance associations) Materials are weighted according to reserves and global consumption Index calculated by assessment criteria and impact factors *Data acquisition and calculation is done according to ISO and (ecological part) 15

16 Determination of Environmental Impact: Societal Weighting Factors 17% 18% energy consumption raw materials air emissions 33% green house gas potential 36% 13% land use 21% emissions water emissions 27% ozone depletion potential 22% 19% 12% toxicity potential risk potential wastes 40% photochemical ozone creation potential acidification potential 19% 22% (Example) 16

17 ISO Sustainability Assessment Methods and Eco-Efficiency Analysis Life Cycle Inventory... quantification of inputs and outputs Life Cycle Assessment... evaluation of environmental impacts Eco-Efficiency Analysis... comparison of products or processes including all life cycle costs... ecological and economic aspects have equal weight in the assessment SEEBALANCE... including social aspects... standard tool in the BASF Group; more than 500 analyses carried out... method certified by TÜV and National Saniation Fundation 17

18 New and more ambitious goals Status 2011 Previous 2020 Goal New 2020 Goal Greenhouse gases* -34.6% -25% -40% +26.2% Energy efficiency +25% +35% CO 2 emissions from natural gas transport* Being prepared NEW -10% Drinking water for production -20.9% NEW -50% Sustainable water management +2.0% NEW 100% Health: annual goal Previously 1 criterion Now HPI with 5 criteria *specific, excluding oil and gas production 3

19 Tools for Sustainable development Strategic Analisys Performance Measurement & Risk Management Relation with supplyers Stakeholders relation Ecoeficiency Analisys SEEBALANCE AgBalance Issue management for Sustainability Audits: Safety, Health and Enviroment Social Performance Assesment Audits on: Quality Safety Enviroment Health protection Social responsability Customers: Add value through Sustainability Participation in stakeholders network 19

20 Stronger integration of sustainability into our business decisions Enable our customers to develop more sustainable solutions Creating value Connect in our team and with society Deliver excellence in our operations Reducing risk 20

21 Sustainability at BASF We will integrate sustainability more closely than ever into our business. And innovation is the key. Dr. Kurt Bock Chairman of the Board of Executive Directors of BASF SE 21

22 Innovation Meeting challenges, developing new business areas Research for the future: with our innovative products and processes, we provide sustainable solutions for global challenges. Expenditures for R&D circa 1.61 billion world leader in chemical industry Since 2005 increase of R&D expenditures by 50% Around 2,800 projects Strongest innovation power in the chemical industry (No.1 in the Patent Asset Index TM ) Sales target 2020: circa 30 billion from product innovations Corporate Research Chemicals Plastics Performance Products Functional Solutions Agricultural Solutions 21% 12% 9% 8% circa 1.61 billion 26% 23% 1% Oil & Gas 22

23 Area of growth Industry Sustainable Innovations In growing technological areas Resources, Eviroment & Climate Food & Nutrition Life Quality Chemistry as enabler Transport Construction Consumer Goods Health & Nutrition Electronics Agriculture Energy & Resources Baterias Heat Management Enzymes Medicina Electronic organic Crop Biotech Energy Management Compósitos leves Functional crop care Metal Recycling Gerenciamento de calor Wind Energy Water Solutions 23

24 Innovation: Advanced Technologies with Improved Environmental Footprint Magnetic Separation: Getting Valuables out of Waste Imagine helping to reduce harmful emissions Challenge: tailings still contain a considerable amount of valuables, which cannot be recovered today Our Solution: separation technology with high selectivity, assisted by reusable magnetic particles Benefit: additional yield of metal such as copper and PGM s, reduced deposition of heavy metals Innovation for the processing of key ores, technology break process. 24

25 Innovation: Advanced Technologies with Improved Environmental Footprint Solvent Extraction LIX/ALAMINE : Value Elements out of Process Imagine helping to reduce harmful emissions Challenge: Solutions still contain a considerable amount of value elements (Cu, Mo, Re, U, Ge, Se, Ni, etc) which cannot be recovered efficiently Our Solution: Solvent extraction selective reagents. A wide range of processes and conditions. Benefit: Recover value elements, reducing environmental effects, optimizing related time and cost. Innovation for the processing and recovery of key elements. 25

26 Innovation: Advanced Technologies with Improved Environmental Footprint RHEOMAX ETD/DR: Water Recovery out of Process to Waste Imagine helping to reduce harmful emissions Challenge: Tailings still contain a considerable amount of water which cannot be recovered efficiently Our Solution: Solid /Liquid enhanced separation technology with high performance, increasing the solid content without losing transportation properties. Benefit: Minimizing water consumption, reducing land areas consumed by tailings, optimizing related time and cost. Innovation for the water recovery and tailing disposal. 26

27

28 AgBalance TM - Measuring sustainability in agriculture Based on its long experience with Eco-Efficiency Analysis and SEEBALANCE, BASF has developed AgBalance, a method to measure and assess sustainability in agriculture. As a provider of agricultural solutions, BASF aims to increase knowledge about sustainable agriculture and contribute to a fact-based dialogue, as well as using these insights for developing innovative and sustainable solutions for our customers. In AgBalance, a variety of indicators and weighting schemes enabling BASF to evaluate sustainable practices in a holistic manner along the entire food value chain. To achieve this, 69 indicators, each linked to one of the three pillars of sustainability (economy, environment and society) are calculated through an assessment of almost 200 evaluation factors. Therewith AgBalance allows the comparison of different farming systems, agricultural enterprises, processes and products, by identifying weaknesses, their drivers and potential solutions

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