BASF Report 2021 Management’s Report – Overview 17 Overview share of the Group’s taxonomy-eligible sales, investments (including Directors and the Supervisory Board (excluding the disclosures acquisitions) and operating expenses for the 2021 business year required by takeover law in accordance with section 315a HGB), relating to the environmental objectives of “climate change miti- compliance reporting and the Declaration of Conformity pursuant to The Management’s Report comprises the chapter of the gation” and “adaptation to climate change.” section 161 of the German Stock Corporation Act. Pur suant to same name on pages 16 to 160, as well as the disclosures section 317(2) sentence 6 HGB, the auditor checked that the disclo- required by takeover law and the Declaration of Corporate Within the scope of the annual audit, KPMG checked pursuant to sures according to section 315d HGB were made. Governance, which are presented in the Corporate Gover- section 317(2) sentence 4 HGB that the NFS was presented in nance chapter. The Nonfinancial Statement (NFS) is integrated accordance with the statutory requirements. KPMG also conducted into the Management’s Report. a limited assurance of the NFS. An assurance statement of the Compensation Report limited assurance can be found online at basf.com/nfs-audit-2021. The assurance was conducted in accordance with ISAE 3000 The Compensation Report is no longer a component of the Nonfinancial Statement (NFS) in accordance with (Assurance Engagements other than Audits or Reviews of Historical Management’s Report. The Compensation Report in accordance sections 315b and 315c of the German Commercial Code Financial Information) and ISAE 3410 (Assurance Engagements on with section 162 of the German Stock Corporation Act (AktG) and (HGB) Greenhouse Gas Statements), the relevant international assurance the assurance statement of the substantive and formal audit issued standards for sustainability reporting. by the auditor have been made publicly available on the BASF The NFS disclosures can be found in the relevant sections of the website at basf.com/compensationreport. Management’s Report and have been prepared in accordance with the appropriate frameworks: the Global Reporting Initiative Stan- Disclosures required by takeover law in accordance with dards (“Comprehensive” application option) and the reporting section 315a HGB Content and structure of the Management’s Report requirements of the U.N. Global Compact. The disclosures required by takeover law in accordance with sec- An overview of the segments’ business models is provided in a The table on the following page shows the sections and subsections tion 315a of the German Commercial Code (HGB) can be found in separate chapter. Material investments and portfolio measures by in which the individual disclosures can be found. In addition to a the Corporate Governance chapter starting on page 161. They form our segments have also been integrated into the chapter of the description of the business model, the NFS includes disclosures on part of the Management’s Report, which is audited as part of the same name. This improves the clarity of the information on our the following matters, to the extent that they are required to under- annual audit. segments. stand the development and performance of the business, the Group’s position and the impact of business development on the following matters: Consolidated Declaration of Corporate Governance in Recommendations of the Task Force on Climate-related accordance with section 315d HGB in connection with Financial Disclosures – Environmental matters section 289f HGB – Employee-related matters BASF supports the recommendations of the Task Force on Climate- – Social matters The Consolidated Declaration of Corporate Governance in accor- related Financial Disclosures (TCFD). Disclosures recommended by – Respect for human rights dance with section 315d HGB in connection with section 289f HGB the TCFD are presented in a number of places throughout this – Anti-corruption and bribery matters can be found in the Corporate Governance chapter from page 185 report. The table on page 19 shows the sections and subsections in onward and is a component of the Management’s Report. It com- which the relevant information can be found. The table is divided In accordance with the E.U. Taxonomy Regulation and the supple- prises the Corporate Governance Report including the description into four key areas in line with the TCFD recommendations: gover- mentary delegated acts, the NFS includes, for the first time, the of the diversity concept for the composition of the Board of Exe cu tive nance, strategy, risk management, and metrics and targets.