BASF Report 2021 Management’s Report – Energy and Climate Protection 131 a Scope 3 emissions along the BASF value chain in 2021 Good to know Million metric tons CO equivalents 2 BASF Customers Disposal Production (including generation Emissions from the use of Incineration with energy of steam and electricity) end products (C 11) recovery, landfilling (C 12) 59 21 4 4 28 6 Suppliers Transport Other Purchased products, services and Transport of products, (C 3b, 3c, 5, capital goods (C 1, 2, 3a) employees’ commuting and 8, 13, 15) business travel (C 4, 6, 7, 9) Product Carbon Footprint We use an in-house digital solution to calculate the carbon a According to Greenhouse Gas Protocol; Scope 1, 2 and 3; categories within Scope 3 are shown in parentheses. Scope 3 emissions in category 10 (“Processing of sold products”) are not reported according to the standard for footprint of our products (PCF). In 2021, this was recognized the chemical sector. Only direct use phase emissions are reported in the customer category (Scope 3.11). For more information on our Scope 3 emissions reporting, see basf.com/corporate_carbon_footprint by organizations such as the German chemical industry asso- ciation (VCI) with the Responsible Care Award for digitalization. rates the use of these Accelerator solutions as particularly good with In 2021, we introduced a global Supplier CO Management Pro- The methodology follows general standards for life cycle 2 respect to climate protection and energy. gram to create transparency and better steer and, in the long term, analysis such as ISO 14044 and ISO 14067, as well as the reduce upstream emissions. In a first step, we ask our suppliers Greenhouse Gas Protocol Product Standard, and has been We calculate carbon footprints for around 45,000 sales products to provide PCFs for our raw materials. We support them by sharing certified by TÜV Rheinland. to increase carbon transparency for our customers (see box our knowledge of evaluation and calculation methods. In this way, on the right). These Product Carbon Footprints (PCF) include all we are also contributing to the standardization of PCF calculation. We used the new method to calculate PCFs for around product- related greenhouse gas emissions generated until a BASF In a second step, we want to work with our suppliers on solutions 45,000 sales products in 2021. The transparency this creates product leaves the factory gates (“cradle-to-gate”). to reduce product-related emissions and establish the PCF as a enables us to target our CO2 reduction measures to those criterion for our purchasing decisions. areas where our customers can later achieve the greatest The extraction of the raw materials we require and the production of For more information on our emissions reporting, see basf.com/corporate_carbon_footprint value added from lower carbon emissions in the value chain. purchased precursors account for the largest share of the PCF. We For more information on Product Carbon Footprints, see basf.com/pcf In 2021, we were able to offer the first products with a certified currently use industrial averages and values from commercial data- reduced carbon footprint through the use of renewable energy. bases as the basis for calculating these upstream emissions. We also started to make the automated PCF calculation approach available to interested industry players by way of partnerships. In a first step, IT companies will be able to trans- late BASF’s methodology and in-house solution into a market- able software through licensing agreements.