BASF Report 2021 Management’s Report – Our Sustainability Concept 48 Our political advocacy is conducted in accordance with trans - Stakeholder demands and expectations of BASF parent guidelines and our publicly stated positions. The same applies to our activities in associations. For instance, we again Customers Investors published an Industry Associations Review in 2021 comparing – Innovative and sustainable solutions – Attractive dividend yield the energy and climate protection positions of BASF and the – Reliable partner – Transparency and risk minimization most important associations of which we are a member, with – Cost effectiveness – Strong long-term share performance explanations on our approach. Society: politics, NGOs, media Suppliers BASF does not financially support political parties, for example – Responsible and trustworthy partner – Fair and reliable business relationships through donations in cash or in kind. This is codified in a global – Production of safe products in compliance – Support in complying with our Supplier Code of guideline. In the United States, employees at BASF Corporation with environmental and social standards Conduct (environmental and social requirements) – Jobs and taxes have exercised their right to establish a Political Action Committee (PAC). The BASF Corporation Employee PAC is an independent, federally registered employee association founded in 1998. It Community Employees and management collects donations from employees for political purposes and – Support for local communities – Attractive and fair employer independently decides how these are used, in accordance with – Safe, disruption-free operations – Health protection – Attractive jobs – Opportunities for professional development U.S. law. We have a particular responsibility toward our production sites’ neighbors. With the established community advisory panels, we promote open exchange between residents and our site manage- Our societal engagement approach ment and strengthen trust in our activities. Our globally binding requirements for community advisory panels are based on the Through our societal engagement, we want to help disadvantaged grievance mechanism standards in the United Nations’ Guiding groups tackle their specific challenges – whether through initiatives Principles on Business and Human Rights. We keep track of in our immediate communities or around the world in cooperation their implementation through the existing global database of the with global organizations. We want to foster societal cohesion by Responsible Care Management System. supporting and protecting health, skills and resources. We support For more information on dialog with our stakeholder groups, see page 106 projects that aim to have a lasting impact on specific target groups For more information on our guidelines for responsible lobbying, see and offer learning opportunities for participating cooperation part- basf.com/guidelines_political_communication ners and BASF (see page 106). For more information on the Industry Associations Review, see basf.com/corporategovernance For more information on the Human Rights Advisory Council, see basf.com/human-rights-council In this way, societal engagement is an important part of the imple- For more information on the Stakeholder Advisory Council, see basf.com/en/stakeholder-advisory-council mentation of our sustainability strategy and our corporate social responsibility. Our societal engagement policy provides the guard- rails for our activities in this area. It stipulates that all engagement measures worldwide must be conducted in line with our compliance policy, BASF’s strategy and our sustainability commitments. For more information on our societal engagement, see page 106