Welcome to the Webinar Sustainable Solution Steering. BASF and thinkstep

Transcription

1 Welcome to the Webinar Sustainable Solution Steering BASF and thinkstep

2 We will start in 2 minutes! Welcome to the Webinar Sustainable Solution Steering BASF and thinkstep

3 Using GoToWebinar Audio options Questions Send 3

4 Speakers of today BASF SE Dr. Andreas Kicherer Director Sustainability Strategy BASF SE Peter Kölsch Team Leader Applied Sustainability thinkstep AG Dr. Martijn Gipmans Team Lead Chemicals 4

5 Sustainable Solution Steering Thinkstep webinar May Ludwigshafen, Peter Kölsch & Andreas Kicherer

6 Sustainable Solution Steering Sustainable Solution Steering BASF Sustainable Solution Steering results and contribution fields Use of Sustainable Solution BASF and our customers Internal

7 Comprehensive screening of BASF s solutions Megatrends Middle class growth Aging Urbanization Population increase Industry / Market Needs Cost savings downstream Emission reduction Climate change and energy Biodiversity and renewables Resource efficiency Health and safety Water Hunger and poverty Three step process Analysis of sustainability needs Evaluation and categorization Development of action plans With our approach we evaluate each product from cradle to grave considering industry and region-specific views in our markets. We strive to achieve a balance between the three dimensions of sustainability.

8 Sustainable Solution BASF Target: 28% 27.3% Substantial sustainability contribution in the value chain Cost savings downstream Biodiversity & renewables Climate change & energy Meets basic sustainability standards on the market Emission reduction Resource efficiency Water 68.3% 4.3% 0.1% Specific sustainability issue which are being actively addressed Significant sustainability concern identified and action plan in development Health and safety UN Sustainable Development Goals Hunger and poverty* 0% 10% (Double nomination possible) *In our assessment, we focus on hunger and poverty as many of the other UN SDGs are covered by our sustainability criteria.

9 60,000 ~13,000 solutions in scope Accelerator solutions with > 15.5 billion sales in 2017 >60% of R&D budget spent on Accelerator projects in 2017 >800 actions defined involved e.g. >2,300experts R&D Product Safety Sales Marketing Sustainability

10 Application and Opportunities for Sustainable Solution Steering Area Use Strategy Steer portfolio towards more sustainable solutions Match portfolio with future market demands Risk management Get transparency on product risks and their financial impact Trigger discussion where to allocate the resources to mitigate risk Accelerator promotion Position individual products with their sustainability advantages Enrich market story by further details (e.g. LCA study) Customer dialogue Discuss sales portfolio and product lists on customer level (door opener) Support sales portfolio management (e.g. replacement of Challenged, increase of Accelerators) Compare sustainability topics addressed with customer specific demand

11 requesting demand on asking for BASF s customers using Sustainable Solution Steering satisfying producing enabling Free off. Less emission Resource efficient Safe handling More sustainable life Think of next generation Well being Harmless goods

12 Sustainable Solution Steering Strategic partnership between BASF and thinkstep Systematic assessment of risks and benefits from sustainability across portfolios Applicable to products, solutions, raw materials, ingredients, parts In-line with the latest guidance from WBCSD Industry-Methodology-for-Portfolio-Sustainability-Assessments 12

13 thinkstep s service We customize and implement the Sustainable Solution Steering approach using a combination of strategic consulting, sector expertise as well as data and software tools. Dedicated sector teams GaBi LCA database BOMcheck Sector Expertise Automotive, energy, oil & gas, chemicals, building & construction, food & ag, renewables, life science PLM software SoFi Data & Software Materiality Assessment Strategy Consulting Compliance Management SDGs, SBTs Reporting & communication Strategy development 13

14 Sustainable Solution Steering Customization approach Identification of relevant sustainability criteria. Customization of triples approach. Development of IT tool based on thinkstep s SoFi platform. Piloting of approach and IT tool on sub-set of portfolio Implementation across portfolio. Integration in overall sustainability architecture. Steering towards more sustainability and value creation. 14

15 Example: BioMar 15

16 Development of BioMar method BASF decision tree 16

17 Development of BioMar method BioMar decision tree BioMar criteria for Sustainability Value Contribution: BioMar minimum and stakeholder requirements: BioMar code of conduct Contribution to profitability Availability of supply Potential for harmful residues Supplier risk score Full traceability Conflicts with natural resources and biodiversity Regionally unacceptable methodologies (e.g. GMOs) Reputational risk Cost savings downstream Impact on local economy Consumer Health and Safety Consumer Preference and Acceptance Animal welfare Use and Quality of Water Biodiversity and Deforestation Waste reduction Abiotic resource depletion Energy and climate 17

18 Software tool to support implementation Progress on data collection; automatic notifications upon completion Definition of roles and sub-sets of information input required from different functions and regions. Data series over time Integration of economic data from e.g. SAP Questionnaire can include single choice, multiple choice, values, input for calculations, free text. Released function to garantee 4-eye principle e.g. for auditing. 18

19 Software tool to support implementation Automatic categorization based on questionnaire input Customizable analytic and reporting functionalities Results of individual regional product applications Display of KPI: sales by category Possibility to include analytics in relation to time series, regions, product categories. 19

20 Outcomes and highlights 2017 first pilot workshop raw materials accounting for 1.2 Billion in purchases assessed ~ 30 accelerator ingredients > 100 internal and external experts consulted > 1,200 raw material analysis 5 application regions: action plans to be implemented in % share of Accelerators of total raw material usage in Norway Europe and Russia Middle East, Africa and Turkey North America and Australia rest Americas 20

21 Sustainable Solution Steering Value 21

22 Future-Proof Your Business. With thinkstep. thinkstep AG Hauptsrasse Dr. Leinfelden-Echterdingen Martijn Gipmans Germany Phone: Fax: