BASF Report 2021 About This Report 5 About This Report GRI 102, 305 Integrated reporting and online services At a glance progress report on BASF’s implementation of the 10 principles of the This integrated report documents BASF’s economic, environmental U.N. Global Compact. and social performance in 2021. We show how sustainability con- ▪ Integrated BASF Report serves as U.N. Global Compact progress tributes to BASF’s long-term success as an integral part of our cor- report The GRI and Global Compact Index can be found in the online porate purpose and our strategy, and how we as a company create ▪ Nonfinancial reporting in accordance with HGB and additional report. It provides an overview of all relevant information to fulfill the value for our stakeholders. sustainability reporting in accordance with GRI GRI indicators and shows how we contribute to the United Nations’ ▪ Financial reporting in accordance with IFRS, HGB and GAS Sustainable Development Goals (SDGs) and the principles of the Symbols U.N. Global Compact. The results of the limited assurance of this ▪ Editorial deadline: February 21, 2022 gesell - information conducted by KPMG AG Wirtschaftsprüfungs You can find more information in this report. ▪ External audit by KPMG AG Wirtschaftsprüfungsgesellschaft schaft can also be found there. We also publish online additional information on sustainability in accordance with the industry-specific You can find more information online. The content of these requirements of the SASB. links are voluntary disclosures that were not audited by the auditor. Content and structure The information on the financial position and performance of the BASF Group comply with the requirements of International Financial The content of this section is not part of the statutory audit but The BASF Report, which is published each year in English and Reporting Standards (IFRS), and, where applicable, the German has undergone a separate limited assurance by our auditor. German, combines the major financial and sustainability-related Commercial Code (HGB), German Accounting Standards (GAS) and information necessary to comprehensively evaluate our performance. the guidelines on alternative performance measures from the Euro- The content of this section is voluntary, unaudited information, We select the report’s topics based on the following principles: pean Securities and Markets Authority (ESMA). Internal control which was critically read by the auditor. materiality, sustainability context, completeness, balance and stake- mechanisms ensure the reliability of the information presented in this holder inclusion. In addition to this report, we publish further informa- report. BASF’s Board of Executive Directors confirmed the effective- tion online. The relevant links can be found at the end of each chapter. ness of the internal control measures and compliance with the regu- lations for financial reporting. Our sustainability reporting has been based on Global Reporting Initiative (GRI) guidelines and standards since 2003. We have applied Material topics along the value chain form the focal points of report- the “Comprehensive” option since 2017. ing and define the limits of this report. We take three dimensions into account in identifying and evaluating material topics: the impact on We have been active in the International Integrated Reporting Council BASF, the impact of BASF and relevance for our stakeholders. (IIRC) since 2014 and have supported the work of the Value Report- For more information on our sustainability reporting, see from page 45 and 96 onward ing Foundation, formed by the merger of the IIRC and the Sustain- Our value creation based on the IIRC framework can be found on page 24 and in the online report ability Accounting Standards Board (SASB), since 2021. This involve- For more information on our control and risk management system, see page 151 onward ment gives us the opportunity to discuss our experiences of The 2021 BASF Online Report can be found at basf.com/report integrated reporting with stakeholders and at the same time, receive The GRI and Global Compact Index can be found at basf.com/en/gri-gc inspiration for enhancing our reporting. BASF’s report addresses ele- The SASB index can be found at basf.com/sasb ments of the IIRC framework by illustrating how we create value, for example. The information contained in this report also serves as a