BASF Report 2021 Management’s Report – Raw Materials 116 conditions for artisanal miners in the Democratic Republic of Congo. pledge with the ILO campaign against child labor, also focusing on To achieve this, the initiative offers programs such as training on the Democratic Republic of Congo. BASF is also an active member important environmental, social and governance aspects of respon- of the Responsible Minerals Initiative. sible mining practices. Since October 2020, 14 mining cooperatives in Kolwezi have participated in training on topics such as occupa- Furthermore, together with Daimler, Fairphone, and Volkswagen, we tional safety and environmental management. Cobalt for Develop- launched the Responsible Lithium Partnership in 2021. It advo- ment also works closely with local NGOs and the Good Shepherd cates for the responsible use of natural resources in Chile’s Salar de International Foundation to create additional income opportunities Atacama, home to the world's largest lithium reserves and a signifi- for families and improve access to education. The joint activities are cant portion of global production. As a first step, the German beginning to show results according to an evaluation of the initiative: Agency for International Cooperation (GIZ) was commissioned to Participants of the program since its launch have seen an increase organize a local multi-stakeholder platform on the opportunities and in average income and savings. Since construction of the new pub- risks of lithium mining and other economic activities such as copper lic primary and secondary schools in Kisote, the majority of children mining and tourism. The goal of the platform is to reach a common have enrolled in school. Overall, several thousand members of the understanding on the status quo and to jointly develop a vision for participating communities are already benefiting. In 2021, the initia- the future of the Salar de Atacama watershed. In addition, potential tive also made an action pledge to eliminate child labor as part of a risks are to be mitigated and opportunities promoted through the global campaign by the International Labor Organization (ILO). Three development and implementation of joint action plans. mining cooperatives around Kolwezi are receiving assistance to implement occupational safety measures and a zero-tolerance Another mineral raw material that BASF processes is mica. We use policy against child labor. both raw mica and effect pigments derived from mica, mainly in the production of coatings. BASF is conscious of its social responsibility We signed a long-term supply agreement with Nornickel for nickel with regard to mica sourcing and applies high standards which, and cobalt from a metal refinery in Finland. The agreement ensures among other things, exclude child labor. Suppliers are asked to locally sourced and secure supply of raw materials for battery mate- source mica in accordance with our Supplier Code of Conduct. As rial production in Europe. In cooperation with Eramet, we are also a member of the Responsible Mica Initiative (RMI), we advocate for assessing the development of a state-of-the-art hydrometallurgical the eradication of child labor and unacceptable working conditions, refining complex in Indonesia, which is expected to secure access specifically in India’s mica supply chain. The initiative focuses on to more sustainably sourced nickel and cobalt as of the mid-2020s. labor standards, strengthening local communities and legal frame- works. According to an RMI study, activities in the relevant regions We are also involved in various international initiatives to strengthen of India have already led to improved income and living conditions. sustainability and innovation in the value chain for batteries. These These include improved access to clean drinking water through the include the Global Battery Alliance (GBA), which we co-founded installation of pumps and filtration systems and improved access to in 2017. It promotes dialog between business, government and health care through doctors’ visits in villages and enrollment in public civil society and develops standards and tools to create a socially health insurance plans. responsible, ecological and economically sustainable, and inno- For more information on the Cobalt for Development project, see basf.com/cobalt-initiative and vative value chain for batteries. For instance, BASF is working with cobalt4development.com/ the GBA on the GBA Battery Passport. In the future, this “digital twin” For more information on the Global Battery Alliance, see globalbattery.org will contain information on the sustainability of a battery to increase For more information on the Responsible Mica Initiative, see responsible-mica-initiative.com transparency in the value chain. The GBA, as well, made an action