Value balancing alliance – consistent assessment in monetary terms of the impact of business activities on the well-being of people Member companies  BASF is a founding member of the value balancing alliance, established in June 2019  Standardizing accounting methodologies to assess value to society and value to business along entire value chain  From traditional reporting of input and output (e.g., raw materials, CO2 emissions) to impact valuation (e.g., social cost of carbon)  Increase transparency by Pro-bono consultants – standardizing calculations for comparable results – piloting in management accounting – making outcomes publicly available Policy advisor Funding  Ambition: Transform business from maximizing profits to optimizing value creation 36 December2022 | BASF ESG Investment Story