Outputs 3 Financial Innovation Operations Environment Employees Partnerships We focus on material €78.6 billion ~820 ~45,000 47.0% 25.6% 787 sustainability topics and Sales New patents worldwide Sales products Share of our waste recycled or Women in leadership positions Suppliers screened through evaluate the opportunities and thermally recovered Together for Sustainability risks of our actions €7.8 billion €24.1 billion 7.3 million metric tons 78.5% 82% 77 EBIT before special items Accelerator sales CO avoided by the Verbund Water demand Engagement index according to Internal audits on our 2 and combined heat and power generation recirculated 2020 employee survey compliance standards 1 Outcomes 4 Economic Environmental Social We aim to increase our positive contributions, minimize negative We make positive contributions by We make positive contributions by creating products that We make positive contributions because we impacts and carefully assess ▪ Driving forward growth, progress and value creation ▪ Contribute to climate protection ▪ Offer products that improve people’s quality of life conflicting goals ▪ Strengthening our customers’ competitiveness and innovative ▪ Conserve resources, avoid waste and strengthen circularity ▪ Provide attractive jobs and promote diversity strength ▪ Pave the way for climate-friendly mobility ▪ Pay taxes and competitive wages and salaries ▪ Accelerating the digital transformation of the industry ▪ Are environmentally friendly and safe to use ▪ Promote integration and help overcome social challenges ▪ Offering our investors an attractive dividend yield Potential negative impacts Negative impacts Potential negative impacts ▪ Weaker growth stimulus due to the coronavirus pandemic, the ▪ The emission of CO and other gases that affect the climate ▪ Risk of violation of labor, environmental and social standards 2 ongoing trade conflict between the United States and China, ▪ Resource consumption and non-recyclable waste in the production of the raw materials we procure and an escalation of geopolitical conflicts ▪ Potential misuse or spillage of products ▪ Lower demand for employees in some areas ▪ A weaker share performance Our countermeasures Our countermeasures Our countermeasures ▪ Disciplined implementation of our corporate strategy ▪ Carbon management ▪ Careful selection, evaluation and development of suppliers ▪ Active portfolio management ▪ Circular Economy Program ▪ Projects to improve sustainability in the supply chains ▪ Systematic cost management ▪ Sustainable water and energy management ▪ Compliance Program and Code of Conduct ▪ Optimizing the cost of capital ▪ Responsible Care management (including product stewardship) ▪ Employee training program Impact We achieve long-term business success by creating value for our shareholders, our company, 5 the environment and society (see page 47 and basf.com/en/value-to-society) 1 The outcomes category shows examples of positive contributions as well as negative impacts and the measures we take to mitigate them.