BASF Report 2021 Management’s Report – Energy and Climate Protection 126 Energy and Climate Protection Schematic overview: development of the BASF Group’s greenhouse gas emissions (Scope 1 and 2) GRI 102, 103, 201, 301, 302, 305 Million metric tons of CO equivalents 2 SUPPLIERS BASF CUSTOMERS 40.1 2030 target Baseline 2018 –25% greenhouse gas emissions compared with 2018 21.9 –7.8% As an energy-intensive company, we take responsibility for the efficient use of energy and global climate protection. Five levers to reduce greenhouse 20.8 20.2 gas emissions: 20.1 2030 target We are committed to the Paris Climate Agreement. Our 16.4 - Gray-to-green inno va tive products enable a reduction in greenhouse gas - Power-to-steam 21.9 - New technologies Carbon management emissions in many areas. At the same time, we are working - Bio-based feedstocks to significantly reduce our own carbon footprint with our - Continuous opex carbon management. 16.4 2050 target At a glance Net zero greenhouse gas emissions 20.2 million 2.4 TWh 0 metric tons Renewable 1990 2018 2030 2050 2018 2019 2020 2021 2030 Greenhouse gas emissions in 2021 energy We have bundled our global activities to reduce greenhouse gas ensures that climate protection-relevant aspects are integrated into ▪ Even more ambitious emission reduction targets emissions in our carbon management (see “Global targets and strategic decision-making processes as well as into core business ▪ New Net Zero Accelerator unit bundles and accelerates projects measures”). We only consider external offsetting measures as a activities (see page 46). In parallel, our operating divisions are work- to achieve targets temporary stop-gap if our activities do not make the desired con- ing on division-specific projects to reduce emissions, supported by ▪ Corporate and product carbon footprints create transparency tribution to reducing emissions. By 2025, we plan to invest up to the global service units. ▪ Supplier CO Management Program €1 billion to achieve our climate protection targets. Additional invest- 2 ments of up to €3 billion are to follow by 2030. We consistently align our actions with our climate protection targets, based on a comprehensive analysis of our emissions. Group-wide Our new organizational structure aims to drive forward our CO emissions are anchored in the BASF Group’s steering and 2 Strategy climate protection targets and carbon management activities with compensation systems as a most important nonfinancial key perfor- even greater focus and speed: The Corporate Strategy & Sustain- mance indicator, giving them even more weight. Investments and Climate protection is very important to us and is an important part of ability unit in the Corporate Center will continue to develop targets acquisitions are assessed with regard to their impact on our climate our corporate strategy. We significantly raised our climate protec- and track global target achievement, while the Net Zero Accelerator protection targets. tion targets in 2021: As a leading chemical company, we want to unit, which was launched at the beginning of 2022, will focus on 1 reduce total greenhouse gas emissions from our production sites accelerating the implementation of existing and new cross-company We are gradually integrating our suppliers into the management of and our energy purchases by 25% by 2030 compared with 2018 – projects to reduce emissions. The emphasis is on low-carbon greenhouse gas emissions along the value chain. To this end, we despite targeted growth and the construction of a large Verbund site production technologies (see page 132), the circular economy (see launched our Supplier CO Management Program in 2021 (see 2 in southern China.2 By 2050, we aim to achieve net zero emissions page 44) and renewable energies (see page 128). Both units report page 130). from our production sites and our energy purchases. directly to the Chairman of the Board of Executive Directors. This 1 The goal includes greenhouse gases according to the Greenhouse Gas Protocol, which are converted into CO equivalents (CO e). 2 2 2 In March 2021, we replaced our previous target of CO -neutral growth until 2030 (baseline 2018: 21.9 million metric tons of CO e) with a new, more ambitious climate protection target to reduce absolute CO emissions by 25% compared with 2018 (new target: 16.4 million metric tons of CO e). 2 2 2 2