Implementing the Ten Principles into Strategies and Operations Full Coverage and Integration Across Principles Blueprint Aspects BASF Implement all the ten UN Global Compact principles into strategies and operations. Design corporate sustainability strategy to leverage synergies between and among issue areas and to deal adequately with trade-offs. Ensure that different corporate functions coordinate closely to We respect and promote • the ten principles of the U.N. Global Compact, • the United Nations’ Universal Declaration of Human Rights and the two U.N. human right covenants, • the ILO's core labor standards and Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (MNE Declaration), • the UN Guiding Principles on Business and Human Rights • the OECD Guidelines for Multinational Enterprises, • the Responsible Care Global Charter, and • the German Corporate Governance Code. Blueprint for Corporate Sustainability Leadership at BASF 2016
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Blueprint for Corporate Sustainability Leadership at BASF 2015
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Implementing the Ten Principles into Strategies and Operations
Full Coverage and Integration Across Principles
Blueprint Aspects BASF
Implement all the ten UN Global
Compact principles into
strategies and operations.
Design corporate sustainability
strategy to leverage synergies
between and among issue
areas and to deal adequately
with trade-offs.
Ensure that different corporate
functions coordinate closely to
We respect and promote
• the ten principles of the U.N. Global Compact,
• the United Nations’ Universal Declaration of Human
Rights and the two U.N. human right covenants,
• the ILO's core labor standards and Tripartite Declaration
of Principles Concerning Multinational Enterprises and
Social Policy (MNE Declaration),
• the UN Guiding Principles on Business and Human
Rights
• the OECD Guidelines for Multinational Enterprises,
• the Responsible Care Global Charter, and
• the German Corporate Governance Code.
Blueprint for Corporate Sustainability Leadership at BASF 2016
maximize performance and
avoid unintended negative
impacts.
As a founding member of the UN Global Compact, we are
committed to our responsibility in accordance with the UN
Guiding Principles on Business and Human Rights.
The BASF Report combines our financial and sustainability
reporting and is addressed to readers interested in both areas.
In addition to our integrated corporate report, we publish further
information about sustainability issues on the internet. The
information in the BASF Report 2015 also serves as a progress
report on BASF's implementation of the ten principles of the
UN Global Compact and takes into consideration the Blueprint
for Corporate Sustainability Leadership - an action plan
initiated as part of the Global Compact LEAD platform.
Through our materiality analysis, continuous dialog with
stakeholders, and our many years of experience, we are
always developing a better understanding of significant topics
and trends as well as potential opportunities and risks along
our value chain.
We have created structures to promote sustainable,
entrepreneurial actions all the way from strategy to
implementation. The Corporate Sustainability Board is BASF’s
central steering committee for sustainable development. It is
comprised of heads of our business, corporate and functional
units as well as of the regions. A member of the Board of
Executive Directors serves as chair. We have also established
an external, independent Stakeholder Advisory Council. Its
members bring an important external perspective to the table in
discussions with BASF’s Board of Executive Directors, thereby
helping us expand our strengths and identify our potential for
improvement.
References
BASF Report 2016
Chapter “Corporate Strategy", pp. 22-25
Chapter “Sustainability management”, pp. 29-31
Chapter “About this report”, pp. 2-4
Robust Management Policies and Procedures
Blueprint Aspects BASF
Assess risks and opportunities
on an ongoing basis at both
enterprise and product level and
undertake due diligence to
ensure that the company
identifies any negative impacts
With our "We create chemistry" strategy, we have defined the
values on which we base our actions. Based on our value of
acting responsibly as an integral part of society, our
standards meet internationally recognized principles and
fulfill or exceed existing laws and regulations. We stipulate
rules for our employees with standards that apply Group-
wide. We set ourselves ambitious goals for observing
caused by its operations and
activities.
Develop strategies and policies
specific to the company’s
operating context – as well as
scenarios for the future - and
establish measurable short,
medium, and long term goals.
Engage and educate
employees through training
activities, the development and
adjustment of business
processes, and sound incentive
schemes.
Implement a system to track
and measure performance
voluntary commitments and review our environmental, health
and safety performance using our Responsible Care
Management System. A worldwide monitoring system
ensures our compliance with labor and social standards. Our
business partners are expected to uphold prevailing laws and
requirements and to align their actions with internationally
recognized principles, and we have established monitoring
systems to ensure this.
We take advantage of business opportunities by offering our
customers innovative products and solutions that contribute
to sustainable development. We ensure that sustainability
criteria are integrated into our business units’ development
and implementation of their strategies, research projects, and
innovation processes. For example, we identify the
sustainability value drivers and risks for specific value chains.
We analyze the sustainability strategies of competitors and
costumers in order to tap new business opportunities.
Our risk management supports our long-term business
success. We aim to reduce risks by setting ourselves globally
uniform requirements for environmental and health
protection, safety and security, product stewardship,
compliance, and labor and social standards that frequently
go beyond legal requirements. Our investment decisions for
property, plant and equipment and financial assets also
involve sustainability criteria. Our decision-making is
based on standardized
performance metrics.
supported by expert appraisals that assess economic
implications as well as potential effects on the environment,
human rights or local communities.
We used a materiality analysis in 2013 to identify and
prioritize relevant sustainability topics for BASF. We started
by collecting around 100 potentially relevant subjects. A
workshop and qualitative interviews with internal and external
specialists revealed that 38 of these were particularly
relevant. Using a global survey, we gathered feedback on
these 38 topics from around 350 external stakeholders
worldwide, as well as around 90 experts and managers from
various functions within the company. The participants rated
the topics in terms of their current and future relevance for
BASF. The results of this ranking are presented in a
materiality matrix. Finally, the findings were discussed in
internal workshops.
The results, which are grouped into eight material aspects of
sustainability, help BASF identify present and future
opportunities and risks for its business and develop
strategies to address these at early stage. Material aspects
derived from this include, for example, energy and climate,
water, resources and ecosystems, responsible production,
and employment and employability. These are the focus
areas of our reporting. We have also integrated them into our
steering processes and used them as the basis for working
out our new global sustainability goals.
In order to properly account for changing conditions and
requirements, we initiated an internal analysis in 2015 to
review the results of the materiality analysis. We have
already started involving numerous colleagues and in 2016,
we have exchanged with external stakeholders on specific
topics.
Our learning and development opportunities support the Best
Team Strategy and have a direct connection to business. We
want to enable life-long, learner-centric learning; in so doing,
we follow the “70-20-10” philosophy. That means applying
the elements “learning from experience” (70%), “learning
from others” (20%) and “learning through courses and media”
(10%). We spent around €69 million on further training in
2016.
We also engage our employees in a variety of trainings to
strengthen their awareness and ability to act according to the
company's objectives for example in the areas of health and
safety or compliance. Examples:
We recorded around 118,000 enrollments in occupational
safety training courses worldwide in 2016. These seminars
comprise not only legally stipulated instructions, but also
courses on safe procedures to strengthen our employees’
risk-aware behavior and prevent work-related accidents.
Our compliance trainings take place in different formats,
including face-to-face training, e-learning or workshops. The
course materials and formats are constantly being updated.
In total, more than 25,000 participants worldwide received
around 40,000 hours of compliance training in 2016.
We set ourselves globally consistent standards. We use
various systems to monitor whether and how our sites
adhere to these standards for environment, safety
performance, health and product stewardship using our
Responsible Care Management System. Furthermore, we
check to make sure they fulfill commitments to labor, social
and compliance standards. We conduct internal audits on
process safety, occupational health and safety, and
environmental protection. We review labor and social
standards based on three main pillars. This includes an
external compliance hotline, an annual survey of our Group
companies and dialog with employee representatives and
international organizations. In addition to economic criteria,
new and existing suppliers are selected based on
environmental, social and corporate governance standards.
We have set voluntary long-term global goals in the areas of
economy, environment, safety, employees and society.
Through these goals, sustainable development at BASF is
transparent and verifiable.
References
BASF Report 2016
• Chapter “Corporate Strategy”, pp. 22-25
• Chapter “Goals”, pp. 26-28
• Chapter “Sustainability Management“ pp.29-31
• Chapter “Working at BASF”, pp.40-45
• Chapter „Suppliers“, pp. 92-93
• Chapter “Production”, pp. 98-100-
• Chapter “Compliance” in Corporate Governance Report, pp. 134-135
organizations. We support BASF Stiftung, a charitable
foundation, in its international projects with various U.N. and
nongovernmental organizations.
In 2016, we revamped our activities in terms of social
commitment and designed them to have an even greater
impact. The Social Engagement Strategy serves as our
launchpad – we use this to strengthen our global approach to
the topic. The strategy revolves around support projects
having a lasting impact on society and offering learning
opportunities for participating cooperation partners and BASF.
The common thread throughout all worldwide social
commitment activities is provided by the Sustainable
Development Goals of the United Nations. Regional emphasis
topics help us tailor our engagement toward local needs.
As part of its humanitarian development collaboration, the BASF
Stiftung, a nonprofit organization, supported a school nutrition
project of the United Nations World Food Programme in
Colombia in 2016 as part of its humanitarian development
work. There, healthy school meals are an important
motivation for students – especially from low-income families
– to attend school. The project also collaborates with small-
holder farmers who supply the participating schools with
groceries. The small-holder farmers are given specific training
in advance.
In the 2016 year-end donation campaign, the company and its employees gave around €337,000 to BASF Stiftung, which is using the sum to support a World Food Programme initiative to improve living conditions for people in Ethiopia.
References
BASF Report 2016
• Chapter “Social commitment”, p. 46
Also see BASFs engagement
Advocacy and Public Policy Engagement
Blueprint Aspects BASF
Publicly advocate the importance
of action in relation to one or
more UN goals / issues.
Commit company leaders to
participate in key summits,
BASF and its representatives are actively promoting the
importance of UN Goals and issues in public.
BASF is actively pursuing the UN Millennium Development Goals. In the worldwide network of Global Compact LEAD, we are participating in the implementation of the “Agenda 2030” adopted by the United Nations in 2015, along with its Sustainable Development Goals. We illustrate our efforts in Food Fortification on a separate