BASF Report 2021 Management’s Report – Targets and Target Achievement 2021 36 Targets and Target Achievement 2021 Business success tomorrow means creating value for the environ- We also pursue broad sustainability targets. In this context, we The objective of these targets is to steer our business into a sustain- 2 ment, society and business. That is why we have set ourselves significantly raised our CO reduction target in 2021. We want to able future, and at the same time, contribute to the implementation 2 ambitious targets along our entire value chain. We report transpar- strengthen the sustainability focus of our product portfolio and will of the United Nations’ Sustainable Development Goals (SDGs). We 3 ently on our target achievement so that our stakeholders can track update our portfolio steering targets in 2022. We also strive to are focusing on issues where we as a company can make a signifi- our progress. In order to grow profitably, we want to grow sales strengthen the sustainability of our supply chains and use resources cant contribution, such as climate protection, sustainable consump- volumes faster than global chemical production, further increase our responsibly. We want to further improve safety in production. In tion and production, and fighting hunger. profitability, achieve a return on capital employed (ROCE) consider- addition, we aim to promote diversity within the company and create For more information on financial indicators, see page 52 onward ably above the cost of capital percentage and increase the dividend a working environment in which our employees feel that they can For more information on sustainability along the value chain, see page 96 onward per share every year based on a strong free cash flow. thrive and perform at their best. Profitable growth 2021 2021 2021 2021 2021 status status status status target 53% 1 13.5% 2021 10.6% €3.40 > 2021 €3.30 target > target 9% SDG >6.1% SDG 2021 SDG SDG target 3% – 5% Most important key performance indicator Achieve a return on capital Grow sales volumes Increase EBITDA Increase the dividend employed (ROCE) considerably above the faster than global chemical before special items per share every year based cost of capital percentage every year production every year by 3%–5% per year on a strong free cash flow Effective climate protection Sustainable product portfolio 2021 2021 2025 status 2030 status target 20.2 target €24.1 €22.0 SDG million 16.4 billion billion metric million tons metric SDG tons Reduction target Most important key performance indicator Most important key performance indicator 1 Dividend proposed by the Board of Executive Directors 2 Includes Scope 1 and Scope 2 emissions. In March 2021, we replaced our previous target of CO -neutral growth until 2030 (baseline 2018: 21.9 million metric tons Reduce our absolute Achieve €22 billion in 2 of CO e) with a new, more ambitious climate protection target to reduce absolute CO emissions by 25% compared with 2018 (new target: 16.4 million metric tons 2 2 3 of CO e). CO emissions² by 25% by 2030 Accelerator sales by 2025 2 ² 3 We already reached our 2025 sales target for Accelerator products in 2021. Consequently, we will update our product portfolio steering target over the course of 2022.