We drive sustainable solutions Innovations for a sustainable future BASF SRI Story, November

Transcription

1 We drive sustainable solutions Innovations for a sustainable future BASF SRI Story, November

2 Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These forward-looking statements are based on current estimates and projections of the Board of Executive Directors and on currently available information. These forward-looking statements are not guarantees of the future developments and results outlined therein. Rather, they depend on a number of factors, involve various risks and uncertainties, and are based on assumptions that may not prove to be accurate. Such risk factors particularly include those discussed on pages 111 to 118 of the BASF Report The BASF Report is available online at basf.com/report. BASF does not assume any obligation to update the forward-looking statements contained in this presentation. BASF SRI Story, November

3 Sustainable development UN SDGs and material aspects provide strategic frame BASF material aspect Sustainable Development Goals Energy and climate Food Water Resources and ecosystems Responsible production Products and solutions Partnering Employment and employability End poverty End hunger, improve food security and nutrition Ensure health and well-being Inclusive and equitable education Gender equality Sustainable water management and sanitation Access to modern energy Economic growth & decent work Infrastructure & innovation Reduce inequality within and among countries Sustainable cities and communities Sustainable consumption & production Combat climate change Sustainable oceans, seas and marine resources Sustainable terrestrial ecosystems & biodiversity Peace & justice Global partnership for sustainable development Match High Medium Low BASF SRI Story, November

4 Sustainability along the value chain Our commitments Suppliers BASF Customers We source responsibly We produce safely for people and the environment We produce efficiently We drive sustainable solutions We respect people and treat them fairly BASF SRI Story, November

5 We source responsibly Enhancing sustainability along the supply chain Joint initiative Together for Sustainability of leading chemical companies since 2011 Standardized and shared supplier evaluations and audits Implementation of follow-up processes, development of action plans 551 sustainability assessments initiated through an external service provider in raw material supplier sites audited on EHS in goal: evaluation of 70% of the relevant suppliers with regard to their sustainability performance (status 2016: 32%) BASF SRI Story, November

6 Sustainability along the value chain Our commitments Suppliers BASF Customers We source responsibly We produce safely for people and the environment We produce efficiently We drive sustainable solutions We respect people and treat them fairly BASF SRI Story, November

7 Verbund unique competitive advantage Actively managed in line with market requirements Geismar Antwerp Ludwigshafen Nanjing Freeport Kuantan. Combined heat and power plants and integrated energy Verbund avoided 6.6 million tons of CO 2 emissions in 2016 Synergies in logistics and infrastructure, minimization of waste > 1 billion of cost savings per year BASF SRI Story, November

8 Waste management BASF Verbund helps to prevent and reduce waste Global waste volume 2016 (million tons) Recycled or thermally recovered Incinerated or disposed of 1.3 Waste is managed based on the following hierarchy: 1. Avoid 2. Reuse 3. Recycle 4. Energy recovery (e.g., waste-to-energy incineration) 5. Other incineration 6. Disposal such as above-ground or underground landfills BASF SRI Story, November

9 Resource efficiency Responsible use of carbon sources We are committed to resource efficiency and climate protection BASF uses carbon raw materials responsibly: 80% of carbon converted to products, 19% consumed for process energy and converted to CO 2, 1% waste 1 Comparisons with European emissions trading benchmarks show that our chemical plants operate at above-average energy efficiency 22 million tons of CO 2 emissions by BASF worldwide in 2016 compared to million tons p.a. for one coal-fired power plant Bild Customers use of BASF s climate protection products sold in 2016 avoided 540 million tons of CO 2 equivalents (thereof 11% attributable to BASF) 2 In 2017, BASF achieved CDP leadership status once again 1 BASF carbon mass balance calculation (2015, non-audited) 2 Based on the chemical industry standard of the International Council of Chemical Associations (ICCA) BASF SRI Story, November 2017 and the World Business Council for Sustainable Development (WBCSD) 9

10 Energy efficiency Greenhouse gas emissions halved and volumes of sales products doubled since 1990 Greenhouse gas emissions (indexed 1 ; base 1990) % Specific greenhouse gas emissions per ton of sales product declined by 75% (status 2016) since goal: Reduction of specific greenhouse gas emissions per ton of sales product by 40% versus 2002 (status 2016: 37%) goal: Introduction of energy management system ISO at all relevant sites 2 (status 2016: 42.3%) % % Volumes of sales products Absolute GHG emissions Specific GHG emissions 1 BASF Group excluding Oil & Gas; International Financial Reporting Standards 10 and 11 since 2013; figures for 2012 restated; no restatement for 2011 and earlier BASF SRI Story, November Representing 90% of BASFʼs primary energy demand 10

11 Global water stewardship Strong commitment to local water management Further increase of water stress areas expected worldwide (climate change, population growth and economic development) Growing competition among water users expected (e.g., households, agriculture, industry) BASF emissions to water 1 reduced by 60% 85% in three main categories: organic substances, heavy metals, nitrogen ( ) In 2017, BASF was again awarded with the top A leadership grade for sustainable water management from CDP 2025 goal: Introduction of sustainable water management at Verbund sites and sites in water stress areas 2 (status 2016: 42.6%) BASF SRI Story, November BASF operations excluding Oil & Gas 2 Representing 93% of BASF s entire water abstraction 11

12 Process safety and occupational safety Global safety standards at all sites to minimize risk and impact of incidents Gobal safety standards (rate 1 ) Process safety incidents (PSI) PSI rate: in goal: reduction of the worldwide PSI rate to Lost-time injuries (LTI) LTI rate: in 2016 Average LTI rate in the German chemical industry: 9.4 (in 2015) 2025 goal: reduction of the worldwide LTI rate to Process safety incidents (PSI) Lost-time injuries (LTI) BASF SRI Story, November BASF Group, per one million working hours; global alignment of reporting systems

13 We create chemistry for a sustainable future Sustainability goals overview and status 2016 Procurement 2020 goal 2016 Product stewardship 2020 goal 2016 Sustainability performance assessment of relevant suppliers 70% 32% Risk assessment of products 2 >99% 75.4% Employees 2021 goal 2016 Women in leadership positions 22-24% 19.8% Long-term goal 2016 Non-German senior executives 36.4% Senior executives with international experience >80% 84.6% Production 2025 goal 2016 Process safety incidents Lost-time injury rate Annual goal 2016 Health Performance Index > Energy & climate protection 2020 goal 2016 Greenhouse gas emissions 3 40% 37.2% Introduction of ISO energy management system 4 90% 42.3% Water 2025 goal 2016 Sustainable water management at Verbund sites and sites in water stress areas 100% 42.6% Products & solutions 2020 goal 2016 Proportion of sales generated by Accelerators 5 in product portfolio 1 Per one million working hours 2 For products >1 metric ton per year 3 Per metric ton of sales products; excl. Oil & Gas, baseline At all relevant sites (primary energy demand, local energy prices) 5 Products with substantial contribution to sustainability 28% 27.2% BASF SRI Story, November

14 Sustainability along the value chain Our commitments Suppliers BASF Customers We source responsibly We produce safely for people and the environment We produce efficiently We drive sustainable solutions We respect people and treat them fairly BASF SRI Story, November

15 Sustainable Solution Steering Methodology to steer our portfolio 68.3% 27.2% 4.2% 0.3% Substantial sustainability contribution in the value chain Meets basic sustainability standards on the market Specific sustainability issues which are being actively addressed Significant sustainability concern, action plan developed >60,000 product applications analyzed ( 53.2 billion sales, 95.9% of BASF s portfolio) 27.2% Accelerators outgrow their markets deliver margins above the average represent majority of BASF s R&D pipeline 68.3% Performers <1% Challenged products 2020 goal: increase the share of Accelerators from 23% (2014) to 28% BASF SRI Story, November

16 Innovations for a sustainable future Examples with significant contributions to sustainability SLENTITE high-performance insulation material Trilon M alternative to phosphate for dishwashing detergents Acronal MB from biomass to dispersions ecovio biodegradable polymer solution Green Sense resource-efficient concrete production FWC Four-Way Conversion catalyst removes particulates BASF SRI Story, November

17 Sustainability along the value chain Our commitments Suppliers BASF Customers We source responsibly We produce safely for people and the environment We produce efficiently We drive sustainable solutions We respect people and treat them fairly BASF SRI Story, November

18 We drive sustainable solutions Systematic sustainability performance assessments since 1996 Eco-Efficiency Analysis SEEBALANCE Carbon Footprint AgBalance Investment evaluation Sustainable Solution Steering Advanced IT solutions for customers New SEEBALANCE Value-to-Society 1996 Corporate Products in the value chain Portfolio and digital solutions BASF SRI Story, November

19 Value-to-Society: changing the perspective Assessing and valuing how business changes the well-being of people Traditional reporting Quantified output (, CO 2 e, LTI ) Impact valuation / Value-to-Society Valued financial and pre-financial impacts ( ) Input Raw materials Output tco 2 e Outcome Climate change Impact Costs of floods etc. BASF SRI Story, November

20 Impact valuation gains momentum It is not a question of if, but rather when impact valuation is implemented Business examples WBCSD Redefining Value Impact Valuation Roundtable Increasing number of companies is piloting in all sectors First companies go public Disclosure CDP (formerly Carbon Disclosure Project) Dow Jones Sustainability Index Reporting schemes started the discussion Standardization Natural Capital Protocol Social Capital Protocol Natural and Social Capital Sector Guidance ISO and BASF SRI Story, November

21 Value-to-Society: a comprehensive assessment Economic, social and environmental impacts in monetary terms based on a PwC model Contributions to gross domestic product (value added) Contributions to society beyond gross domestic product Net income Amortization Depreciation Wages Taxes Human capital Health & safety Air emissions Water emissions Water consumption GHGs Land use Waste Economic Social Environmental Impact categories Consistent application at corporate, project, and product level Value chain Corporate level: production cycle supply chain, own operations, customer industries Project and product level: use phase and end-of life integrated on a case-by-case basis BASF SRI Story, November

22 Benefits and limitations of Value-to-Society Complementary information to demonstrate relevance and interdependencies Positioning Progress monitoring Decision making Communication Reporting Advocacy Over time Industry benchmark Relevance of impacts Risk exposures Business opportunities Required data accuracy and granularity Required maturity level of quantification and valuation methods BASF SRI Story, November

23 BASF s Value-to-Society 2016 Net positive contribution to sustainable growth in each step of the assessed value chain Full external supply chain 1 Own operations Customer industries 2 Net income Amortization Taxes Wages & benefits Human capital Health & safety Air pollution GHGs Land use Waste Water consumption Water pollution billion Value contribution from BASF procurement Value contribution from BASF operations Value contribution from BASF sales BASF SRI Story, November Indirect suppliers, direct suppliers 2 Customers in industries supplied by BASF 23

24 We create chemistry for a sustainable future Sustainability is a core part of our strategy and fully integrated into our management systems. Sustainability creates growth opportunities. We assess our contribution to a sustainable future along the entire value chain. We improve our understanding of the interdependency of financial and pre-financial impacts. Our Value-to-Society approach is aligned with existing standards, and is pragmatic and auditable. We engage in relevant networks to share our learnings. BASF SRI Story, November

25 BASF SRI Story, November

26 SLENTITE High-performance insulation panel for construction Slentite PU aerogel as solid panel with best in class thermal insulation Flexible scope of design thanks to very slim panel (25 50% less than industry standard) Construction solution for reduced energy consumption Slentite Slentite Perspective Strong growth potential in a market of 1.3 billion Start of production in a few years BASF SRI Story, November

27 Trilon M Chelating agent for more sustainable detergents and cleaners Trilon M alternative to phosphate for automatic dish washing Fast growing global market demand driven by regulatory changes and consumer demand 2015: Start-up of a new Trilon M world-scale plant in Alabama, USA 2016: Expansion and flexibilization of production facilities in Ludwigshafen Compared with alternative chelating agents Trilon M is readily biodegradable and shows high performance meets eco-label requirements has better eco-toxicology profile BASF SRI Story, November

28 Acronal MB From biomass to dispersion for premium paints First BASF binder for interior paints based on the biomass balance approach launched in % of interviewed professional painters in Germany see an increase in sustainability aspects in tenders Replacing fossil raw materials with renewable feedstock at the beginning of the production process Less greenhouse gas emissions Renewable BASF Verbund production steps Feedstock Fossil Allocated Products Conventional Enabling interior paints that combine environmental responsibility with uncompromising premium quality BASF SRI Story, November

29 Epotal and Ecovio paper coatings From a Challenged product to a business opportunity 1. Identification of the Challenged product: Polyfluorinated substances as coatings for paper packaging (environmental concern) 2. Development of action plan: Start of a research project 3. Launch of Accelerator product substitution: Recyclable Epotal and biodegradable ecovio paper coating BASF SRI Story, November SRI Conference Nov

30 Green Sense concrete technology Contributing to sustainable construction Low Green Sense Concrete system consists of: 1. Innovative admixture products 2. Concrete mix services 3. Eco-efficiency analysis Environmental Impact High Reference Concrete BASF s Green Sense Replaces up to 78% of cement with recycled materials* 45% less CO 2 emissions 1 26% less energy needed Applied in the construction of landmark projects, e.g., One World Trade Center, NYC High Total Cost of Ownership Low BASF SRI Story, November Data based on 1 m 3 compared to a reference mix 30

31 Four-Way Conversion catalyst (FWC ) FWC reduces emission of gaseous pollutants and particulates HC CO NOx Particulates Leading position: Global mobile emissions catalysts patents N 2 CO 2 H 2 O FWC Combines a 3-way conversion catalyst with integrated filter on a ceramic substrate Reduces gaseous emissions Precious metal-based catalytic coating removes exhaust gases from engine emissions 2 Removes particulates Filters & combusts particulates Complies with emissions limits Helps OEM meet EU 6c regulatory standards FWC introduced in 2013 Sustains BASF s leading technology position 0 BASF Competitors BASF SRI Story, November Hydrocarbons, carbon monoxide, nitrogen oxides 31