Sustainability Along the Value Chain BASF Report 2021 Management’s Report – Sustainability Along the Value Chain 96 Sustainability Along the Value Chain We want to contribute to a better world with enhanced quality of life for everyone. That is why the three pillars of sustainability are firmly anchored in our corporate purpose, our strategy, our targets and our operating business. They are at the core of what we do, a driver for growth and an element of our risk management. We pursue a holistic approach that covers the entire value chain. We contribute to a sustainable development and to the United We value people and treat them with respect Nations’ Sustainable Development Goals (SDGs) in many ways (see page 36). For instance, our innovations, products and tech- SUPPLIERS BASF CUSTOMERS nologies help to use natural resources more efficiently, meet the demand for food, enable climate-smart mobility, reduce emissions We source responsibly We produce safely and efficiently We drive sustainable solutions and waste, and increase the capabilities of renewable energy. Alongside these positive contributions, our business activities also have negative impacts. For example, we create CO2 emissions, use protection, health and safety (see page 117). We meet our respon- thematic focus like the Alliance to End Plastic Waste (AEPW) or the water and procure raw materials from suppliers, which may involve sibilities with respect to international labor and social standards Global Battery Alliance (GBA). In addition, we realize a wide range of a potential risk of human rights violations. This is why we are con- chiefly through three elements: the Compliance Program, close projects – often together with partners – for example, to improve stantly working to broaden our positive contributions to key sustain- dialog with our stakeholders and the guideline on compliance with sustainability in the supply chain or to promote circularity in the ability topics (see page 45) along our value chains and reduce the international labor norms, which applies Group-wide. economy. negative impacts. For more information on how we value people and treat them with respect, see page 97 onward Our business partners are also expected to comply with prevailing For more information on responsible procurement, see page 109 onward We are committed to doing business in a responsible, safe, laws and regulations and to align their actions with internationally For more information on safe and efficient production, see page 117 onward resource-efficient and respectful way. Our actions are guided by recognized principles. We have established appropriate manage- For more information on sustainable solutions, see page 141 onward our corporate values and our global Code of Conduct. We comply ment and control systems, for example, for working with our with and in some cases exceed the applicable laws and regulations suppliers (see page 109). with voluntary commitments. We stipulate binding rules for our employees with standards and guidelines that apply throughout the We seek dialog with our stakeholders to discuss critical issues Group. In doing so, we consider, respect and promote interna- and, if necessary, develop solutions together. Through our societal tionally recognized principles such as the 10 principles of the U.N. engagement, we want to create a positive impact, particularly in Global Compact and the Core Labor Standards of the International the communities surrounding our sites and help solve global Labor Organization (ILO). challenges. We want to ensure that we act in line with the applicable laws and We are involved in numerous sustainability initiatives to drive uphold our responsibility to the environment and society with forward sustainability in general and, specifically, as this relates our comprehensive management and monitoring systems. Our to our value chains. These include the World Business Council Responsible Care Management System does this for environmental for Sustainable Development (WBCSD) as well as networks with