Our Strategy BASF Report 2021 Management’s Report – Our Strategy 26 Our Strategy In this section: Strategic Action Areas GRI 102 Values and Global Standards Chemistry is our passion. As an industry leader, we want to be the most attractive partner for challenges that can be solved Business Models of the Segments with chemistry. That is why our customers are at the center of everything we do. We want to grow profitably and at the same Targets and Target Achievement 2021 time, create value for society and the environment. We help to change the world for the better with our expertise, our innovative Investments and Portfolio Measures and entrepreneurial spirit, and the power of our Verbund integration. This is our goal, embedded in our corporate purpose: Steering Concept We create chemistry for a sustainable future. Sustainability Concept Innovation The world is changing at a rapid pace – more and more urgently We also see these disruptive changes as an opportunity. As the Good to know than ever, solutions are needed for a more sustainable future. world’s largest chemical company, we want to lead the way and Chemistry plays a key role here. In almost all areas of life, it can help actively and responsibly shape the change. That is why we are overcome pressing global challenges with innovative products gradually switching our energy and raw material supplies to renew- and technologies – from climate change and using resources more able sources. We are strengthening our Verbund structure as the sparingly to feeding the world’s population. This belief is expressed basis for resource-efficient, safe and reliable production. We are in our corporate purpose and is what motivates us day in and day developing pioneering low-carbon production processes for our out: We create chemistry for a sustainable future. products. We are accelerating our innovation processes and deep- ening cooperation with partners to develop high-performance Our corporate purpose products that also require fewer resources and have a lower carbon footprint. We are harnessing the many opportunities of digitalization. We create chemistry for a sustainable future We are systematically aligning our portfolio with growth areas and Net Zero Accelerator future technologies, and are integrating sustainability into our value chains even more strongly. We create a working environment in The new Net Zero Accelerator unit started work on January 1, Our mission and motivation is to grow profitably and make a positive which our employees can thrive and contribute to BASF’s long-term 2022. It bundles the extensive cross-company activities with contribution to society and the environment. For example, BASF’s success. This is how we live our corporate purpose. which we want to achieve our ambitious climate protection solutions contribute to climate protection and help to prevent or For more information on our strategic action areas, see page 28 onward targets. The unit will initially have around 80 employees and recycle waste, produce healthy and affordable food, and enable report directly to the Chairman of the Board of Executive climate-smart mobility. Directors. It will focus on accelerating and implementing projects relating to low-CO production technologies, circular 2 At the same time, as an energy and resource-intensive company, we economy and renewable energies – driving forward BASF’s are facing what is probably the biggest transformation in our over transformation to a climate-neutral company. In parallel, our 150-year history: The shift toward a carbon-neutral and circular operating divisions will continue to work on divisional-specific economy and the associated landmarks such as the European carbon reduction projects. Green Deal demand from us new concepts and approaches – for the For more information on climate neutrality, see pages 27 and 126 to 132 way we produce, for our raw material base and for our energy supply.