How We Create Value
The overview provides examples of how we create value for our shareholders, our company, the environment and society. It is modeled on the framework of the International Integrated Reporting Council (IIRC). 1
1 The content of the graphic been audited within the scope of the relevant sections of the Management’s Report in which they appear.
2 The outcomes category shows examples of positive contributions as well as negative impacts and the measures we take to mitigate them.
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Financial
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Innovation
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Operations
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Environment
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Employees
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Partnerships
We create chemistry for a sustainable future
In focus: our customers
~90.000 customers
from almost every sector and country
Our core values: creative, open, responsible, entrepreneurial
How we conduct our business
- Innovative products and solutions
help to use resources more efficiently and overcome global challenges
- Comprehensive product portfolio with high synergies
from basic chemicals to high value-added specialty products
- Efficient production
thanks to integrated value chains and our Verbund system
- Eleven divisions organized into six segments
aligned with value chains, customer needs and market requirements
- Global, customer-focused presence
with around 250 production sites worldwide, including six Verbund sites
- Differentiated business strategies
from cost leadership to custom system solutions
- Effective corporate governance
ensures responsible conduct along the value chain
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Financial
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Innovation
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Operations
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Environment
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Employees
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Partnerships
Economic
We make positive contributions by
- Driving forward growth, progress and value creation
- Strengthening our customers’ competitiveness and innovative strength with products and technologies
- Accelerating the digital transformation of the industry
- Offering our investors an attractive dividend yield
Potential negative impacts
- Weaker contributions to growth and value creation due to reduced demand from our customer industries as a result of the coronavirus pandemic
- A weaker share performance on the capital market
Environmental
We make positive contributions by operating our plants efficiently and creating products that
- Help to use natural resources more efficiently
- Enable climate-smart mobility
- Improve the capabilities of renewable energy
- Reduce emissions and resource consumption
Negative impacts
- The emission of CO2 and other gases that damage the climate
- The consumption of raw materials and the creation of non-recyclable waste in our production
- The potential misuse of our products
We limit negative impacts through
Social
We make positive contributions because we
- Offer products that improve people’s quality of life
- Provide attractive jobs, train young people and promote lifelong learning, health and diversity
- Pay taxes and competitive wages and salaries
- Help to solve challenges (for example, COVID-19)
Potential negative impacts
- The risk of our suppliers violating labor, environmental and social standards in the production of raw materials
- Lower demand for employees in some areas as a result of digitalization and efficiency gains
BASF's contribution
We achieve long-term business success by creating value for our shareholders, our company, the environment and society.
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