In Focus: Circular Economy BASF Report 2021 Management’s Report – In Focus: Circular Economy 44 In focus: Thinking and Acting Circular As the world’s population grows, so does demand for limited natural resources. At the same time, many recyclable materials end up in landfill or in waste incineration. New concepts are needed to decouple growth from resource consumption. Reduce, reuse and recycle are the keywords of this transition to a system of more sustainable product cycles with less resource consumption and lower carbon emissions. The concept of conserving resources, recycling and feeding waste the recovery of valuable metals from spent batteries and catalytic back into the system is not new for BASF. As early as 1865, it under- converters. pinned the foundation of our company: At that time, Friedrich Engelhorn pursued the idea of producing synthetic dyes from coal In addition, we are developing innovative products and tech- tar – a waste product – and organizing production efficiently in an nologies in many areas that will increase the service life of materials integrated Verbund structure. We are still committed to this tradi- or their recyclability and compostability. One example is additives for tion today and are aligning our actions more strongly than ever with the mechanical recycling of plastics. A Group-wide co-funding pro- circularity. The chemical industry is doubly important for the transi- gram supports our employees in developing new business models tion to a circular economy. Firstly because many value chains start for the circular economy – from the initial idea to market launch. Our here. And secondly because many products and technologies target: By 2030, we want to double our sales of solutions for the based on chemistry help to close loops. That is why both aspects circular economy to €17 billion. These are products that are based – switching to renewable raw materials and innovations for more on alternative raw materials, that close material loops or increase the circularity – are core elements of our Circular Economy Program. resource efficiency and durability of products. For more information on recycled raw materials, see page 115 onward For example, we already use bio-based and renewable raw mate- For more information on sustainable solutions and the circular economy, see page 141 onward rials in our production (see page 113). To further reduce the resource and carbon footprints of our products and solutions, we will align Our circular economy targets our raw material base even more strongly toward recycled and renewable raw materials. For instance, we aim to process 250,000 metric €17 billion 250,000 metric tons of recycled and waste-based raw mate- tons Sales of solutions for the rials in our production plants annually from 2025. Together with Recycled and waste-based raw circular economy by 2030 partners, we are analyzing waste streams and raw material sources materials processed every year to find the best solution and develop suitable, innovative processes from 2025 Together with partners, BASF is developing innovative products (see page 115). This is the case, for example, in the chemical recy- and technologies to improve recyclability and enable resources to cling of used tires and different types of plastics, where we can feed be fed back into the system in the future. One example is chemical recovered raw materials such as pyrolysis oil or monomers back recycling. Find out more about how used tires and mixed plastic waste are converted into new raw materials in the online report into our Verbund structure at different points. Another example is at report.basf.com.