BASF

No leading practices were identified for the company in the governance and strategy measurement area.

No leading practices were identified for the company in the environment measurement area.

No leading practices were identified for the company in the nutrition measurement area.

No leading practices were identified for the company in the social inclusion measurement area.

Sustainable development strategy
BASF discloses a materiality analysis and targets for some of its most relevant sustainability topics. It also reports progress against them. However, the company does not disclose targets for all of its relevant sustainability topics. Furthermore, it is unclear what some targets, notably on sustainable product portfolio and responsible procurement, seek to achieve. There is an opportunity for BASF to develop stronger targets and objectives which address sustainability topics across all three benchmark dimensions (environment, nutrition and social inclusion).

Governance and accountability for sustainable development
The company discloses that its decision-making process and oversight responsibilities for its sustainability strategy lie with its highest governance body. The company also states that the compensation of the board of directors includes short-term incentives, which are one-year strategic targets notably on sustainability. However, there is an opportunity for BASF to improve its disclosure on its sustainability governance by demonstrating that these sustainability incentives cover all three benchmark dimensions. The company could also report on its executives’ remuneration policy regarding sustainability.

Stakeholder engagement
The company undertakes stakeholder engagement activities and shares the outcomes of these activities. However, while the company discloses some information about how it identifies relevant stakeholders, it does not provide evidence of a sufficient process for identifying and engaging with stakeholders across its value chain. Furthermore, its stakeholder engagement does not cover sustainability topics across all three benchmark dimensions. Therefore, there is room for BASF to enhance its reporting on its stakeholder engagement, notably by increasing its related disclosure.

Scope 1 and 2 greenhouse gas emissions
BASF discloses a time-bound target to reduce its greenhouse gas (GHG) emissions by 30% by 2030 as well as to net-zero GHG emissions globally for its scope 1 and 2 emissions by 2050. While these targets are new, the company reports a reduction in scope 1 and 2 emissions between 2018 and 2020. However, there is an opportunity for the company to ensure external verification of the targets to show they are aligned with a 1.5-degree trajectory.

Scope 3 greenhouse gas emissions
While the company discloses that it is measuring scope 3 emissions by disclosing segments of these emissions, it has an opportunity to strengthen its commitment by setting targets and reporting against them.

Protection of terrestrial natural ecosystems
BASF states that it has met its target of 100% of its palm oil and palm kernel oil coming from certified sustainable sources by 2020. It discloses a new target to expand these commitments to the significant intermediates based on palm oil and palm kernel oil by 2025. However, while the company shares that it sources soya, it has not identified it as a high-risk commodity. Therefore, the company provides evidence that it has achieved deforestation and conversion-free supply chains for some but not all of its relevant high-risk commodities.

Soil health and agrobiodiversity, and fertiliser and pesticide use
The company discloses qualitative evidence through its participation in projects to encourage the protection of biodiversity at the local level and its outcome-based business model xarvio HEALTHY FIELDS. Nevertheless, it has an opportunity to strengthen its commitment by setting targets to increase the percentage of production from sustainable practices that improve soil health and agrobiodiversity as well as that optimise use of fertilisers and pesticides, reporting progress against the targets and disclosing quantifiable data on its impact.

Water use
The company has a goal to improve water efficiency at its production sites in water-stressed areas and at its six Verbund sites by 2030, covering 93% of BASF’s total water abstraction. It also collaborates with suppliers to reduce water withdrawals in its supply chain. However, no disclosure of engagement with suppliers in water-stressed areas was found in the public domain. There is an opportunity for BASF to strengthen its water-related targets as well as to increase its disclosure on its activities in water-stressed areas.

Food loss and waste
While the company discloses information on its Cool Food Pledge, the pledge mostly aims to develop plans for serving more climate-friendly food. As such, the company does not disclose that it is addressing food loss and waste. The company has an opportunity to disclose a commitment by demonstrating policies and/or activities that tackle food loss and waste, especially through its products.

Availability of healthy foods
BASF discloses a commitment towards increasing the availability of healthy and nutritious foods and several related projects such as its Food Fortification Initiative. However, it does not provide quantitative evidence of the impact of its activities. There is an opportunity for BASF to enhance its disclosure by systematically providing quantitative information on the impact of its projects on the production of healthy and nutritious foods.

Accessibility and affordability of healthy foods
BASF provides examples of collaboration with partners to support people with lower incomes, that includes the aim to provide access to nutritious food. Examples are the Super Grano and Food Cluster projects. However, the company does not provide quantitative evidence of the projects’ impact. There is room for the company to improve its disclosure by systematically providing quantitative information on its projects targeting the accessibility and affordability of healthy foods.

Workforce nutrition
While the company discloses that it addresses healthy food at work and offers nutrition-focused health checks, it is unclear whether these programmes are company-wide. Furthermore, the company does not disclose quantitative evidence of the percentage of healthy food offerings. There is an opportunity for BASF to increase its disclosure on this topic.

Child labour
While the company states it does not tolerate any form of child labour in its operations, it does not disclose a sufficient commitment to prohibit child labour in its supply chain.

Forced labour
While the company commits to prohibiting forced labour in its own operations, it does not disclose a similar commitment for its supply chain. Furthermore, it has an opportunity to disclose a requirement that prohibits its suppliers from retaining workers’ personal documents or restricting workers’ freedom of movement.

Living wage
The company does not disclose that it pays its workers a living wage or requires its suppliers to do the same. Neither has it set targets to do so in the future.

Health and safety of vulnerable groups
While the company mentions that its Human Rights Advisory Council discusses and interacts with vulnerable groups, it does not disclose that it specifically recognises the health and safety risks to vulnerable groups, such as migrant and temporary labourers, women and young farmers.

Farmer productivity and resilience
Through its breeding activities, innovations in digitalization and use of inputs, BASF reports to improve farmer productivity globally. The company further reports on several activities supporting farmer productivity and resilience. These include its Farmer Field School initiatives in Asia, On-Target Application Academy in the United States and FarmNetwork Sustainability in Europe. However, the company does not disclose the impact of its support activities in a consistent manner. Therefore, there is an opportunity for BASF to improve its disclosure by reporting on the impact of its farmer support activities.

Land rights
The company does not commit to recognising and respecting the legitimate tenure rights related to the ownership and use of land of local communities.

BASF commits to respecting human rights and the ILO core labour rights, has a publicly available statement of policy that expects its supply chain partners to commit to respecting the ILO core labour rights and provides a grievance mechanism for both workers and third parties. The company also has a global system to take action to prevent, mitigate or remediate its human rights issues. However, there is an opportunity for BASF to improve its human rights due diligence process at different stages of its value chain. Moreover, no assessment of its salient human rights risks was found in the public domain, and the company does not disclose it engages with affected and potentially affected stakeholders.

While BASF publicly commits to respecting the health and safety of workers and supporting gender equality and women’s empowerment, the company can improve its performance by increasing its disclosure on these topics. Moreover, the company has not made commitments towards paying a living wage and can strengthen its commitments and expectations regarding working hours and collective bargaining in its own operations and supply chain.

BASF discloses policies on personal data protection as well as bribery and corruption. There is room for BASF to improve by disclosing income tax payments on a country-by-country basis as well as strengthening reporting on its lobbying and political engagement policies.