BASF Report 2021 Corporate Governance – Report of the Supervisory Board 178 development. Regular topics of discussion were occupational and process safety and A significant component of all Supervisory Board meetings was the Board of Executive matters relating to sustainability, the environmental and social impact of the com- Directors’ reports on the current business situation with detailed information on sales pany’s activities and the challenges of climate change for the future development of and earnings development, as well as on opportunities and risks for business develop- BASF’s business. The Supervisory Board discussed in detail the reports from the ment, the status of important investment projects (current and planned), operational Board of Executive Directors, and also deliberated on prospects for the company and excellence, important aspects of economic, environmental and social sustainability, its individual business areas with the Board of Executive Directors. It was convinced developments on the capital markets, significant managerial measures taken by the of the lawfulness, expediency and propriety of the Board of Executive Director’s Board of Executive Directors, and innovation projects. com pany leadership. In all meetings held in 2021, the Supervisory Board also discussed the progress of The Chairman of the Supervisory Board and the Chairman of the Board of Executive major investments and ongoing portfolio projects. Discussions focused on: Directors were also in regular contact outside of Supervisory Board meetings. The Chairman of the Supervisory Board was always promptly and comprehensively – The development of the joint venture Wintershall Dea created by the merger of the informed of current developments and significant individual issues. The Supervisory oil and gas businesses of BASF and LetterOne Board was involved at an early stage in decisions of major importance. The Super- – The investment in a joint venture with Shanshan to produce battery materials in visory Board passed resolutions on all of those individual measures taken by the China Board of Executive Directors which by law or the Statutes required the approval of the – The progress and opportunities and risks of the investment project to establish a Supervisory Board. new Verbund site in southern China – The progress and completion of the sale of the pigments business Supervisory Board meetings Important topics addressed by the Supervisory Board, which were discussed with the Board of Executive Directors at all meetings, were the effects, challenges and oppor- The Supervisory Board held five meetings in the 2021 business year, each of which tunities of climate change and, in particular, the European Green Deal and the resulting was attended by all members. The meetings were held in person with most Super- changes in the regulatory environment. The Supervisory Board is convinced that the esent. Only at the meeting prior to the virtual visory Board members physically pr successful management of the necessary, fundamental transformation process, Annual Shareholders’ Meeting did the majority of members also participate virtually. which affects all stages of the value chain, is key to BASF’s future and long-term The members of the Supervisory Board elected by shareholders and those elected by success, not least with regard to society’s and investors’ likely expectations. These the employees prepared for the meetings in separate preliminary discussions in each topics were also the main focus of the Supervisory Board’s strategy meeting in case, which were also attended by members of the Board of Executive Directors. October 2021. All members of the Board of Executive Directors attended the Supervisory Board At its meeting on February 24, 2021, the Supervisory Board reviewed and approved meetings unless it was deemed appropriate that the Supervisory Board discuss the Consolidated Financial Statements, Management’s Report and the proposal for individual topics – such as personnel matters relating to the Board of Executive the appropriation of profit for the 2020 business year as presented by the Board Directors – without them being present. In addition, each Supervisory Board meeting of Executive Directors. It also discussed the agenda for the Annual Shareholders’ includes an agenda item that provides an opportunity for discussion without the Meeting on April 29, 2021, and adopted its proposals for resolutions. Since, due to Board of Executive Directors (executive session). the continuing effects of the coronavirus pandemic, the Supervisory Board considered An individual overview of attendance at meetings of the Supervisory Board and its committees will be made available on the it impossible to hold a physical meeting, it agreed to again hold the Annual Share- company website at basf.com/supervisoryboard/meetings holders’ Meeting as a virtual event without the physical presence of shareholders. Other topics discussed at the meeting were business conditions and development as well as opportunities and risks for BASF’s business in China, the world’s largest