ESG Investment Story

We create chemistry for a sustainable future BASF ESG Investment Story, December 2022

Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. Such risk factors include those discussed in Opportunities and Risks on pages 151 to 160 of the BASF Report 2021. BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements. 2 December2022 | BASF ESG Investment Story

Resource efficiency – BASF’s Verbund is ideal for CO emission reduction 2  Combined heat and power plants and integrated energy Verbund avoided 7.3 million metric tons of CO e emissions in 2021 2  Synergies in logistics and infrastructure, minimization of waste  BASF uses fossil raw materials responsibly: 75% of carbon converted to products, 25% consumed for process energy and converted to CO equivalents1 2  European emissions trading benchmarks show that BASF’s chemical plants operate at above-average energy efficiency 3 December2022 | BASF ESG Investment Story 1 BASF carbon mass balance calculation (2019, non-audited, without oil and gas business)

Our commitments to reaching the Paris Climate Agreement 25% 2030 CO emissions 2 reduction (compared with 2018)1 net zero CO emissions1 2050 2 4 1 4 December2022 | BASF ESG Investment Story December 2022 I BASF ESG Investment Story Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO reduction 2

Our two perspectives on emission reductions Reduction BASF Group targets Scope 2 Scope 1 measures at site level CO 2 Product carbon Products footprint (PCF) Scope 31 Scope 2 Scope 1 with reduced PCF kg CO2e per kg 5 December2022 | BASF ESG Investment Story 1 Scope 3 emissions from raw materials production by suppliers

Our path to reduce BASF emissions from 2018 to 2030 BASF greenhouse gas emissions (Scope 1 and Scope 2) 2018–2030 Million metric tons CO reduction in business as is 2018 CO increase from growth 2 2 50% 25% Grey-to- green Power- Verbund site to-steam New Bio-based South China technologies feedstocks Opex Temporary Growth measures (organic, inorganic) Business asis2018 6 December2022 | BASF ESG Investment Story

Our path to reduce BASF emissions from 1990 to 2050 BASF greenhouse gas emissions (Scope 1 and Scope 2) 1990–2050 Million metric tons CO reduction in business as is 2018 CO increase from growth 2 2 >45% ~75% ~60% 100% Grey-to- green Power- to-steam New Bio-based Opex Verbund site technologies feedstocks Temporary Growth South China measures (organic, inorganic) Business asis2018 7 December2022 | BASF ESG Investment Story

Our roadmap is backed by robust calculations and solid planning Projected BASF greenhouse gas emissions Million metric tons CO equivalents 2 31 Lower CO2 emissions Projected emissions already materialized without mitigation 2018 29 until 2020 11 million tons of CO 2 27 Opex avoided annually by 2030 25 Grey-to-green (including RECs) 23 Baseline 2018 21 Technology-based CO 21.9 2 19 abatement projects 17 Target 2030 15 16.4 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 8 December2022 | BASF ESG Investment Story

No downstream decarbonization without upstream decarbonization BASF greenhouse gas emissions 2018 Global GHG emissions 22 Million metric tons per year Scope 1+2 11 11 1 Energy production Chemical production 5 6 9 2 Electric power Steam Upstream Downstream Grey-to-green Power-to-steam New technologies Bio-based feedstocks Continuous opex2 9 December2022 | BASF ESG Investment Story 1 Includes emissions from process energy 2 Operational excellence measures

Structured approach to capex spending Current project pipeline and projected capex Pilot scale  eFurnace Engineering and Pilot furnace First commercial furnace Global roll-out 1 construction  Water electrolysis Engineering and Operation 1 construction  Methane pyrolysis Trial reactor Pilot engineering and construction Pilot operation Global roll-out Commercial scale  CCS Implementation and operation  Heat pumps Implementation and operation  E-boilers & e-drives Implementation and operation Operational excellence 2021 < €1 billion 2025 €2-3 billion 2030 10 December2022 | BASF ESG Investment Story 1 Depending on public funding

Switching our power to renewable energy will be the main driver of emission reduction until 2025 BASF global power demand and renewable supply projection Terawatt hours 2040 2030 x2-3 projection  BASF strives for 100% of power demand 2021 >60% power 2021 to be green by 2030 of demand demand  BASF power consumption expected to 16% covered with increase strongly due to electrification 50 renewables on our journey to net zero of demand covered with renewables  BASF pursues a make-and-buy strategy 25 to secure access to renewable power  Early investments in renewable power assets expected to offer advantageous 0 economics in the future 2021 2025 2030 2035 2040 Grey energy Green energy Additional need for green energy for electrification, depending on availability 11 December2022 | BASF ESG Investment Story

We are delivering with a pipeline of projects to secure supply of renewable energy at competitive prices BASF power demand and renewable supply projection in Europe Terawatt hours 15 Make  Contracted projects in Europe: Buy − Long-term PPAs signed with ENGIE Buy and Ørsted 10 − Investment in largest offshore wind farm, Hollandse Kust Zuid (HKZ); joint ownership with Vattenfall and Allianz 5  Pipeline includes project idea for a wind farm together with RWE  BASF Renewable Energy GmbH to focus 0 on supplying BASF Group companies 2021 2022 2023 2024 2025 2026 2030 in Europe with renewable energy Grey energy Green energy Additional need for green energy for electrification, depending on availability 12 December2022 | BASF ESG Investment Story

High potential from changing to power-to-steam allows decoupling from electricity supply Current situation Future situation CO CO 2 2 Gas-fired Gas-fired power plants steam boilers E-boilers Heat pumps E-drives Fossil-based steam generation Electrification of steam generation and reduction of steam consumption 13 December2022 | BASF ESG Investment Story

Ten base chemical production technologies cause the majority of BASF’s CO emissions 2 Greenhouse gas emission profile of BASF technologies Energy and chemistry emissions, million metric tons per year1 4 3 2 1 0 Steam Ammonia Acrylic Caprolactam Nitric Syngas TDI Hydrogen Ethylene MDI cracker acid acid oxide BASF has identified its CO -intensive processes and is addressing them 2 14 1 14 December2022 | BASF ESG Investment Story Based on nameplate capacities, excluding at-equity consolidated companies

Construction started on world’s first demonstration plant for large-scale electrically heated steam cracker furnaces Conventional furnace  Construction of demonstration plant started at CO Ludwigshafen Verbund site in cooperation with 2 Naphtha Raw SABIC and Linde olefins 850°C  Funding granted by German Federal Ministry Furnace for Economic Affairs and Climate Action Natural gas  Startup of the demonstration plant planned eFurnace for 2023 Naphtha Raw olefins 850°C eFurnace Renewable energy 15 December2022 | BASF ESG Investment Story

Water electrolysis plant will integrate internally produced green hydrogen into our Verbund Seamless integration into BASF Verbund Schematic  Shortlisted for public funding by German Federal Ministry for Economic Affairs and Climate Action Steam  Start-up of water electrolysis targeted for 2024, reforming Hydrogen investment of more than €90 million, capacity of 8,000 metric tons H2  Hydrogen to be used in BASF Verbund and for local community hydrogen mobility market Water Verbund electrolysis1 (80-90 plants) Water electrolysis is a commercially available technology but consumes large amounts of electricity 16 December2022 | BASF ESG Investment Story 1 PEM technology

Methane pyrolysis combines low emissions with low energy demand  Methane pyrolysis requires around 80% less electricity than water electrolysis Hydrogen  Funding for pilot reactor was granted Renewable by German Federal Ministry of Education energy and Research1  Milestone achieved: Pilot reactor at the Ludwigshafen site started successfully Natural gas or in Q2 2021 biomethane Solid carbon  Start-up of first commercial plant projected before 2030 17 December2022 | BASF ESG Investment Story 1 Grant number 03SF0571A

Verbund site Antwerp: CCS is a mature drop-in solution for large-scale process emission abatement Full cross-border CCS value chain  Project consortium Antwerp@C has entered the Local International Offshore FEED phase for CO infrastructure in the port of CO2capture transport transport CO storage 2 2 Antwerp; BASF is one of the founding members  Project Kairos@C – a consortium of BASF and Air Liquide – has entered the project engineering via pipeline phase at BASF’s Antwerp Verbund site  International cross-border CCS value chain Gathering aiming to reduce BASF’s CO emissions in Emitters 2 pipeline via ship Antwerp by 1 million tons per year in a first step CO 2 terminal  Planned to be operational by 2025 Scope Antwerp@C 18 December2022 | BASF ESG Investment Story

Entry points for bio-based feedstocks in BASF value chains BASF Verbund Bio-based feedstocks BASF Upstream entry points products (e.g., steam cracker) Upstream Downstream Bio-based feedstocks Product-specific entry points (e.g., bio-BDO) In the BASF Verbund, bio-based feedstocks can be used as a drop-in solution, in part using new, dedicated processes 19 December2022 | BASF ESG Investment Story

Operational excellence – a lever to continuously increase our energy efficiency and avoid CO emissions 2 Reduction of CO emissions through operational 2 excellence measures  Opex measures helped to reduce CO emissions Kilo tons per year, cumulative 2 by ~1 million tons from 2013 to 2021 1400  In 2021, ~400 opex measures were realized that reduced CO emissions 1200 2  Examples: 1000 − Plant for plastics production repurposed 800 off-heat to generate steam for other plants, equaling ~5,000 tons lower CO emissions annually 2 600 400 − Further optimized process control in nitric acid cluster avoids 145,000 tons of CO2 200 equivalents per year  New process to foster opex projects linked to 0 CO emission reductions 2013 2014 2015 2016 2017 2018 2019 2020 2021 20221 2 20 December2022 | BASF ESG Investment Story 1 Forecast

We have built an industry-leading system enabling us to provide product carbon footprints calculated with a certified digital solution Scope 3 Emissions caused by suppliers and generation of raw materials CO 2 Software solution Product carbon Customer benefits footprints of  Transparency on CO2 sales products emissions  Identification of main Scope 1 + 2  TÜV-certified2 reduction levers Emissions caused by own  Meets ISO standards3  Certified software operations1  Calculates product carbon footprints  Transparent cradle-to-gate documentation 1 Energy generation and chemical processes 2 ISO 14067:2018 21 December2022 | BASF ESG Investment Story 3 ISO 14040:2006, 14044:2006, 14067:2018, GHG Protocol Product Standard

BASF and Henkel join forces to substitute fossil feedstock in Henkel’s Laundry & Home Care and Beauty Care products  Henkel will substitute fossil with renewable carbon feedstock from BASF for most of Henkel’s Laundry & Home Care and Beauty Care businesses in Europe over the next four years  Following a successful pilot with Henkel’s cleaning and detergent brand Love Nature in 2021, we are now going big with Henkel’s core brands like Persil, Pril, Fa and Schauma  Ultimately, around 110,000 tons per year of ingredients will be substituted with renewable carbon sources with BASF’s certified biomass balance approach  The program will ramp up quickly and avoid around 200,000 tons of CO emissions in total 2 22 December2022 | BASF ESG Investment Story

We create transparency on the CO2 emissions of our raw materials as an important step in reducing BASF’s Scope 3 emissions BASF’s CO e emissions from raw material 2  BASF is supporting various initiatives to develop and establish purchase 2021 workable standards for the chemical industry  Supplier CO Management Program rolled-out in 2021 to collect 2 specific PCFs and align on reduction targets Total  More than 700 key suppliers have been approached by the end of 50% 53 million 2021, accounting for 50% of Scope 3 emissions1 addressed by 1  Collaboration through knowledge sharing on PCF calculation outreach metric tons methodology ongoing to ensure engagement and quality of data  First suppliers have committed to reducing their emissions  BASF will make PCFs a buying criterion to ensure PCF reduction of its sales products 23 December2022 | BASF ESG Investment Story 1 GHG protocol Scope 3.1: purchased goods and services: 55 million tons CO e, thereof 53 million tons purchased raw materials 2

BASF’s Circular Economy Program: Targets  250,000 metric tons of circular feedstock by 2025  Double circular sales to €17 billion by 2030  Prioritize related capex, M&A, R&D 24 December2022 | BASF ESG Investment Story

From a linear to a more circular economy TM – BASF contribution: ChemCycling Close the loop  Investments in Quantafuel (pyrolysis of mixed Plastic waste and plastic waste) and Pyrum (pyrolysis of end-of-life end-of-life tires are tires); uptake supply agreements with both companies TM converted into liquid ChemCycling  Agreement with New Energy for uptake of feedstock and fed into + can handle mixed pyrolysis oil derived from end-of-life tires and for a BASF’s value chains plastic waste joint feasibility study for adaption of technology to other + produces virgin- plastic waste streams grade materials  Agreement with ARCUS on uptake of pyrolysis oil + replaces virgin from mixed plastic waste fossil resources + CO emissions 2 1 Landfill Incineration prevented Linear economy Littering Mechanical recycling 25 December2022 | BASF ESG Investment Story 1 Compared to conventional plastic production and incineration of plastic waste

Transformation requires a broad technology portfolio Carbon Low-PCF Circular Management Bio-based Economy Ccycled™ CO avoidance potential per megawatt hour Target: We aim at doubling our circular 2 of electrical energy used (metric tons of CO /MWh) sales to reach €17 billion by 2030 2  Methane pyrolysis ~0.9 Focus on closing the loops  Heat pumps ~0.6-1.0  Renewable-based feedstocks  eDrive NH ~0.7  Recycled-based feedstocks 3  Enable recyclability and/or  eFurnace ~0.2 biodegradability  Water electrolysis ~0.2 26 December2022 | BASF ESG Investment Story

€24.1 billion of BASF Group sales from sustainable solutions – leveraging our innovation power Absolute sales 2021  Portfolio segmentation: >56,000 specific product Billion € applications analyzed by end of 2021(€71 billion in 1 Substantial sustainability sales, 98.7% of relevant portfolio ) 24.1 contribution in the value chain  Accelerator margins on average ~6 percentage points above the rest of assessed portfolio Meets basic sustainability  We will stop selling Challenged products within standards on the market maximum five years after classification 39.0  Target of achieving €22 billion of sales with Specific sustainability issues, Accelerator products by 2025 achieved in 2021; actively addressed portfolio steering target to be adjusted in the course of 2022 Significant sustainability concern identified and action plan developed 7.9 0.03 27 December2022 | BASF ESG Investment Story 1 The definition of the relevant portfolio and further information can be found in the Sustainable Steering Solution manual at basf.com/en/sustainable-solution-steering

Sustainable Solution Steering BASF’s Accelerators contribute to the UN Sustainable Development Goals Absolute sales 2021 Sales shares of contributing Primarily Billion € Accelerators (%) addressed SDGs Cost savings downstream 24.1 Biodiversity and renewables Climate change and energy 39.0 Emission reduction Resource efficiency Water Health and safety Hunger and 7.9 0.03 poverty (including double nominations) 28 December2022 | BASF ESG Investment Story

Innovations for a sustainable future – Accelerator examples Lipofructyl® Argan LS 9779 – Mattex® PRO –Additive in coatings Serifel® – Biological fungicide Oil for skin and hair care with lower emissions against crop diseases Elastopir® – PIR system with good Tinuvin® NOR® 356 –Light Baxxodur® EC 301 – Epoxy system insulation properties stabilizer to reduce plastic waste for cost-competitive wind blades 29 December2022 | BASF ESG Investment Story

The EU Green Deal from a BASF perspective  BASF supports the objective of the Green Deal and the ambition to climate neutrality by 2050, in combination with a strong industrial policy  Innovations and initiatives from BASF have the potential to help make the EU Green Deal come true  A key prerequisite to realize the industrial transformation of the chemical sector is an enabling policy framework 30 December2022 | BASF ESG Investment Story 1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO reduction 2

Protecting biodiversity is a key element of our commitment to sustainability Supply chain Sites and production Products  We published our position on  We take into consideration  We ensure our products are Forest Protection in June 2020 preservation of biodiversity in the appropriately used by offering  We are working on increasing management of our sites customer trainings supply chain sustainability, for  We systematically assess  We commit to the Responsible Care® example through our Palm sustainability aspects for charter of the International Council of Sourcing Policy expansions or constructions of sites Chemical Associations (ICCA) Initiatives We are engaging in dialogs with a variety of stakeholders, for example:  the Roundtable on Sustainable Palm Oil (RSPO)  the Alliance to End Plastic Waste (AEPW)  the BASF FarmNetwork Sustainability  the MataViva® Initiative 31 December2022 | BASF ESG Investment Story

We source responsibly and strive to improve sustainability performance in the supply chain  Goal: Cover 90% of our relevant spend1 with sustainability evaluations by 2025 (2021: 85%), and have 80% of our suppliers improve their sustainability performance upon re-evaluation (2021: 74%)  Supplier Code of Conduct rooted in internationally recognized standards such as the principles of the UN Global Compact and the International Labor Organization  Engaged in more than 20 initiatives to improve sustainability performance and working conditions in the supply chain, e.g., Global Battery Alliance (GBA), Responsible Cobalt Initiative (RCI), Roundtable on Sustainable Palm Oil (RSPO)  Founding member of the “Together for Sustainability” initiative for the joint evaluation of suppliers: – 5,817 online assessments and 284 audits carried out by an independent service provider for member companies in 2021 – BASF itself is assessed and was ranked among the top 1% of companies in 2021 1 We understand relevant spend as procurement volumes with relevant suppliers. We define relevant suppliers as Tier 1 suppliers showing an elevated sustainability risk potential as identified by our risk matrices and our purchasers’ 32 December2022 | BASF ESG Investment Story assessments. We also use further sources of information to identify relevant suppliers such as evaluations from Together for Sustainability (TfS), a joint initiative of chemical companies for sustainable supply chains.

Global water stewardship – strong commitment to local water management  Further increase of water stress areas expected worldwide (climate change, population growth and economic development)  Growing competition among water users expected (e.g., households, agriculture, industry)  In 2021, BASF achieved an A- rating in CDP’s Water Security List  Goal: Introduction of sustainable water management at our Verbund sites and at all production sites in water stress areas by 2030, covering 89% of BASF’s total water abstraction – Water stress areas are regions where more than 40% of available water is used by industry, households and agriculture – Status 2021: 53.5% 33 December2022 | BASF ESG Investment Story

Our sustainability commitments as a leader in agriculture Climate Smart Farming Sustainable Solutions Digital Farming Smart Stewardship -30% 7% 400+ Safe CO2per ton of annual increase in our million hectares supported crop produced share1 of solutions with with digital technologies use of our products with substantial sustainability 1 right stewardship by 2030 contribution by 2030 in wheat, soy, 1 1 rice, canola and corn in terms of sales cumulative 2020-2030 Supporting farmers to become Steering our portfolio Helping farmers to grow Striving for more carbon efficient systematically profitably and reduce their zero farming incidents and resilient to volatile to increase the share environmental footprint that impact human health weather conditions of sustainable solutions we and the environment bring to farmers year by year 34 December2022 | BASF ESG Investment Story

Engaged employees – proud ambassadors for what BASF stands for  BASF’s employees and their engagement are key to enable our long-term business success  Annual goal: More than 80% of our employees feel that at BASF, they can thrive and perform at their best  To measure the engagement, we – collect regular feedback of our employees – engage our employees in discussions on the results – identify improvement areas and drive follow-up activities – report on the current status in the BASF Report  Global survey “Employee Voices” in 2022: 81% of all participants agreed to the statement that at BASF they can thrive and perform at their best 35 December2022 | BASF ESG Investment Story

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

Corporate Governance – Two-tier management system of BASF SE appoints the Board of Executive Directors  Transparent and effective separation of company monitors the Board of Executive Directors management and supervision advises the Board of Executive Directors  Reasonable level of diversity, reports to the Supervisory Board e.g., with respect to gender: – Board of executive directors: 33% female members – Supervisory Board: 33% female members 37 December2022 | BASF ESG Investment Story

We create chemistry for a sustainable future – overview of 1 sustainability goals and KPIs Effective climate protection Target 2021 status SDG Sustainable product portfolio Target 2021 status SDG 2 ≤ 16.4 20.2 4 €22.0 €24.1 Reduce our absolute CO2 emissions Achieve €22 billion in Accelerator sales by 25% by 2030 million million by 2025 billion billion (development of carbon emissions compared metric metric with baseline 2018)3 tons tons 2 Employee engagement and diversity Target 2020 status SDG Achieve net zero CO emissions by 2050 2 Increase the proportion of women in 30% 25.6% leadership positions with disciplinary Resource efficiency and safe production Target 2021 status SDG responsibility to 30% by 2030 Reduce worldwide process safety incidents ≤ 0.1 0.3 per 200,000 working hours to ≤ 0.1 by 2025 More than 80% of our employees feel that at > 80% 82% BASF, they can thrive and perform at their Reduce the worldwide lost-time injury rate  ≤ 0.1 0.3 best per 200,000 working hours to ≤ 0.1 by 2025 Responsible procurement Introduce sustainable water management at 100% 53.5% Cover 90% of our relevant spend5 with 90% 85% our production sites in water stress areas sustainability evaluations by 2025 and at our Verbund sites by 2030 Have 80%of our suppliers improve their 80% 74% sustainability performance upon re-evaluation 1 Targets as published in the BASF Report 2021 2 The goal includes Scope 1 and Scope 2 emissions. Other greenhouse gases are converted into CO equivalents according to the Greenhouse Gas Protocol. 2 3 2030 target compared with 1990: 60% CO reduction 38 December2022 | BASF ESG Investment Story 4 2 Products with substantial contribution to sustainability 5 Relevant spend; based on risk matrices, purchasers’ assessments and other sources

BASF in sustainability ratings and rankings MSCI ESG Research In 2022, BASF was rated A. The analysts highlighted that BASF is present in clean tech markets and has a robust carbon mitigation strategy. CDP Disclosure Leadership In 2021, BASF achieved a score of A- in all categories we are participating in: “Climate,” “Water” and “Forest,” thus attaining leadership status again. Sustainalytics BASF belongs to the best category for “diversified chemicals” with a medium ESG risk and was recognized for its strong risk management, e.g., in the areas of CO , emissions, wastewater and waste as well as occupational health and safety. 2 FTSE4Good Global Index BASF was again included in the FTSE4Good Global Index in 2022 and is top class in terms of ESG among chemical companies included in the index. ISS ESG In 2022, BASF held its Prime Status (B-), being among the top 7%. 39 December2022 | BASF ESG Investment Story