BASF Report 2021 16 Contents Management’s To Our Shareholders Management’s Report Corporate Governance Consolidated Financial Statements Report Overviews 2 Overview 17 The BASF Group’s Business Year 52 Sustainability Along the Value Chain 96 Nonfinancial Statement Disclosures 18 Economic Environment 52 We Value People and Treat Them with Respect 97 TCFD Recommendations Index 19 Results of Operations 56 Responsible Procurement 109 Net Assets 61 Safe and Efficient Production 117 The BASF Group 20 Financial Position 63 Sustainable Solutions 141 How We Create Value 24 Actual Development Compared With Outlook for 2021 67 Forecast 145 Our Strategy 26 Business Review by Segment 69 Economic Environment in 2022 145 Chemicals 72 Our Strategic Action Areas 28 Outlook 2022 148 Materials 76 Our Values and Global Standards 31 Opportunities and Risks 151 Industrial Solutions 79 Business Models of the Segments 33 Surface Technologies 82 Targets and Target Achievement 2021 36 Nutrition & Care 85 Material Investments and Portfolio Measures 38 ricultural Solutions Ag 88 Our Steering Concept 42 Other 92 Our Sustainability Concept 45 Non-Integral Oil and Gas Business 93 Innovation 49 Regional Results 94 E.U. Taxonomy 95