In Focus: Global Trends BASF Report 2021 Management’s Report – In Focus: Global Trends 32 In focus: Global Trends and Growth Opportunities for BASF It is important for us to understand which global trends will shape the future. On this basis, we can identify opportunities, align our strategies and operations, monitor risks and create value added for our stakeholders. The transition to a climate-neutral society is the greatest Growing resource scarcity means that resources and materials challenge of the coming decades. Many of our products and tech- must be used responsibly. We develop and market innovative tech- nologies are key to this transformation. For example, we are nologies and products in a wide variety of areas to keep recyclable developing innovative battery materials, lightweight materials, and materials in circulation for as long as possible. Going forward, we will additives for climate-smart mobility. Catalysts and other emission align our business models, products and processes even more control technologies from BASF reduce emissions in many applica- strongly with the circular economy. For example, we are driving for- tions. Materials from BASF make buildings more energy efficient and ward the chemical recycling of plastics and improving mechanical generating power from wind and solar energy possible. We help recycling with new products and technologies. Other action areas farmers reduce carbon emissions with our integrated offering of include the use of renewable and recycled raw materials and the seeds, crop protection and digital solutions. We are continuously recovery of metals from spent batteries and catalytic converters. expanding our portfolio of climate protection products. At the same time, we are working hard to significantly reduce the carbon foot- Digitalization and connectivity offer many opportunities to opti- print of our production and our products in our carbon management. mize our processes: maintenance work can be planned in advance, innovation processes accelerated or logistics concepts and cus- Population growth and rising prosperity will increase demand tomer relationships improved. In addition, new business models are for food, household and personal care products, drugs, clothing opening up, for example in agriculture or with products for the and much more. At the same time, consumer behavior is changing. electronics and semiconductor industries. Sustainability aspects are playing an increasingly important role in our value chains. Our innovative solutions for agriculture enable In the emerging countries of Asia and South America, we have higher yields from the same land area, contributing to a food supply an innovation, production and sales base that has grown over that meets diverse economic, environmental and social require- several decades. We are strengthening this position with further ments. We offer food and feed manufacturers and customers in the investments. BASF is conducting research globally on innovative battery materials. pharmaceutical, cosmetics, detergents and cleaners industries a Kathrin Michel’s team, for example, is looking at how charging times product portfolio focused on sustainability, which we are continually can be shortened, ranges increased and battery life improved. Find expanding with bio-based and biodegradable solutions. out more about how BASF is contributing to climate-smart mobility in the online report at report.basf.com.