BASF Report 2021 Management’s Report – We Value People and Treat Them with Respect 105 perspectives and to deal more openly with critical situations. At the including and especially there – and contribute to the respect of We report on our global targets, monitoring systems and measures same time, the renowned external experts show us where we have human rights. to integrate human rights topics into our business activities in publi- potential for improvement and help us to build on our strengths in cations such as this report and online. how we handle human rights. The meetings, which are chaired by We have trustful working relationships with our partners (customers, For more information on standards in our supply chain, see page 109 onward our Chief Compliance Officer, are also attended by employees from suppliers, joint venture partners, contractors), expect them to com- For more information on raw materials, see page 112 onward the sustainability strategy and compliance units. Other repre sen ta- ply with internationally recognized human rights standards and to For more information on our production standards, see page 119 onward tives, for example, from the operating divisions or procurement, are demand the same of their partners further along the value chain. We For more information on systems for monitoring labor and social standards, see page 103 onward invited depending on the focus topics. In this way, the Human support our partners in their efforts to meet their respective For more information on corporate governance and compliance, see page 161 onward Rights Advisory Council provides an external perspective on estab- responsibilities. See basf.com/humanrights for more information on the human rights position and a comprehensive report on the implementation of due diligence in human rights in accordance with the requirements of lishing and improving our processes, and contributes this in discus- the National Action Plan developed by the German government, and in accordance with the sions with the leadership team. We can only meet our goal of eradicating human rights abuses U.N. Guiding Principles on Business and Human Rights along our value chains if we work together. We have defined our For more information on the Human Rights Advisory Council, see basf.com/human-rights-council We maintained our dialog with the Human Rights Advisory Council expectations in a binding Supplier Code of Conduct. We are in throughout 2021, both with the body as a whole and in small groups, close contact with our business partners, especially in higher-risk and with individual experts. The topics discussed included respon- areas and regions, and monitor the implementation of required sible supply chain management, for example in challenging supplier standards and measures for improvement. We use recognized relationships or in high-risk regions. Our contribution to the respon- assessments and audits to verify this. sible use of our solutions and products was also discussed. In 2021, we stepped up our commitment to action areas with increased risk potential, such as battery materials (see box on the Good to know right). Where conflict minerals (tin, tantalum, tungsten, their ores and gold) are used, we pay attention to the implementation of the Battery Minerals Task Force relevant E.U. regulation in our supply and value chains. We also set store on certified sustainable supply chains and fair working In 2021, BASF established a Battery Minerals Task Force to meet conditions in the procurement of raw materials such as palm oil, the specific challenges associated with the growing demand for palm kernel oil and castor oil. We maintain dialog with national and battery materials. It bundles the expertise of the Catalysts division international NGOs and are involved in numerous networks and and various functional units. The initiative was formed to address partnerships (see page 113 onward). These include the Cobalt for the risks and opportunities of our global raw material supply Development initiative in the Democratic Republic of Congo, the chains for battery materials from a sustainability viewpoint and Responsible Lithium Partnership in Chile, the Global Battery Alliance steer the resulting activities. The aim is to ensure the responsible and the Roundtable on Sustainable Palm Oil (RSPO). procurement of battery materials. The task force is also respon- sible for the ongoing development of our internal guidelines to As an international company, we are a part of society in the coun- ensure their continuous improvement and adaptation to new tries in which we operate and have business relationships with regulatory requirements, as well as to take account of develop- partners around the world. We are confronted by the fact that there ments in our business areas. are states that do not honor their obligation to protect human rights. For more information on supplier management, see page 109 onward People are particularly at risk in such countries and companies’ For more information on mineral raw materials, see page 115 onward ability to act is often limited. We are committed to our values –