SD Update Newsletter Sustainable Development

2/2013 November In this issue

BASF receives European Water Stewardship certificate Page 2 North of France: First passive house in social housing Page 3 More sustainability in the chemical supply chain Page 3 BASF again included in two renowned indices Page 4 BASF Corporation recognized for Diversity Management Page 4 Praise for sustainability initiative “Chemie³” Page 5 European Business Forum – Sustainability in Europe Page 5 BASF signs WASH pledge Page 6 BASF launches Nutrition Compact Page 6 German Global Compact Network: Reelection of steering committee Page 6 2 Newsletter Sustainable Development 2/2013

About this issue

Sustainability is a journey that France to diversity management in ed links to additional sustainability BASF shapes with manifold exam- the US, from sustainability indices topics and events – to keep you in- ples from different areas. This va- and certification to the topic of wa- formed with just a few clicks. riety is reflected by the topics we ter. Moreover, the newsletter gives selected for this second 2013 is- insights into the initiatives and net- We hope you enjoy reading the sue of “SD Update – Newslet- works BASF supports in order to new issue. ter Sustainable Development”. drive Sustainable Development. They range from social housing in On the last page we have collect- The editorial team

BASF receives European Water Stewardship certificate

BASF is the first chemical com- certificate, auditors of third party tion in downstream water bodies. pany to achieve gold-level certifi- certification body TÜV Nord Integ- The European standard was devel- cation according to the European ra assessed the entire water man- oped by governments, businesses Water Stewardship (EWS) stan- agement performance of BASF’s and NGOs under the leadership of dard for its production site in Tarra- production site, from extraction of the independent organization Eu- gona, Spain. In order to attain this water at its source to its reintroduc- ropean Water Partnership (EWP) and became effective at the end of 2011.

The application of the EWS stan- dard aims to lower the quantity of water used by companies and farms while simultaneously safe- guarding the integrity of local eco- systems within the vicinity of the site. The assessment includes more than 50 indicators, address- ing the four principles of water stewardship: sustainable water abstraction, ensuring good water status, protection of high conser- vation areas and equitable water governance. Amongst others, the assessment requires a water recy- cling strategy and a cohesive crisis In „water-stressed“ regions (marked red) more than 60 percent of the naturally avail- management strat- able water sources are exploited by humans. Especially in these areas BASF aims to egy to be in place. More improve its water management even further. 3 Newsletter Sustainable Development 2/2013

North of France: First passive house in social housing

3,616 square meter living space, 49 house standard with this project,“ tion of the external facade, Elas- units, two buildings. Unimaginable said Johann Souvestre, who sup- topor® polyurethane rigid foam that an object of this size annual- ported the project. „We even ex- for roofing and polyurethane spray ly needs just 15 kilowatt hours per ceeded this aim.“ foam for the flooring. square meter for heating, or about 1,5 liter heating oil. The talk is of Requiring 15 kilowatt hours per „Béthune 49“, a building project, square meter annually for heat- in which experts of the European ing, the energy performance of Construction Competence Center the dwellings is better than the of BASF in France are participating targets set by the French law. As together with other partners. The Oliver Ubrich, Managing Director inauguration took place last week- of BASF France underlined within end in Béthune near Lille, France. his inauguration speech: “With this It is the first social housing that construction project, we are antic- meets passive house standards in ipating European energy targets of the North of France. „Right before 2020.” Different construction ma- Olivier Ubrich, Managing Director of the ground-breaking in 2010 we all terials of BASF contribute to this: BASF France (2. f. l.) and officials of agreed about achieving the passive Neopor® was used for the insula- Béthune inauguration.

More sustainability in the chemical supply chain

In order to enhance sustainability plete one form instead of multiple (ISO), Social Accountability Interna- within the supply chain the chemi- questionnaires with the relevant tional (SAI) and others. cal companies BASF, Bayer, Evonik sustainability information provid- Industries, Henkel, LANXESS and ed to all participating buyers who Solvay joined forces in the Togeth- would otherwise need separate er for Sustainability (TfS) initiative. sustainability assessment or audits The TfS initiative has successfully from these suppliers. The initiative concluded its first year of piloting is based on good practices and sustainability assessments and au- builds on established principles – dits in global supply chains. such as the United Nations Glob- al Compact (UNGC) TfS aims at developing and imple- and the Responsible More menting a global supplier engage- Care Global Charter ment program that assesses and as well as standards improves sustainability sourcing developed by the In- More practices, including ecological and ternational Labor Or- „Together for Sustainability“ aims at en- social aspects. Participating sup- ganization (ILO), the International hancing sustainability within the supply pliers will now only have to com- Organization for Standardization chain. 4 Newsletter Sustainable Development 2/2013

BASF again included in two renowned indices

In September 2013, BASF was risk and crisis management, hu- again included in the global Dow man capital management and plant Jones Sustainability Index (DJSI biotechnology. The DJSI World is World) and CDP Global 500 Climate one of the most renowned sustain- Disclosure Leadership Index (CDLI). ability indices and represents the top 10 percent of the largest 2,500 The BASF share is included in the companies included in the Dow mate Disclosure Leadership Index DJSI World for the 13th consecu- Jones Global Index. (CDLI) for the ninth time. tive year. The company has been recognized for its engagement in According to CDP, an internation- The CDLI 2013 contains 60 com- al organization that compiles envi- panies that disclose their data in a ronmental information from com- particularly transparent and com- panies, BASF is among the lead- prehensive manner. As in previ- ing companies in climate protection ous years, BASF is the top scorer reporting worldwide. The company in the Materials is listed in the CDP Global 500 Cli- sector. More

BASF Corporation recognized for Diversity Management

BASF Corporation has been named Express, IBM, Cummins, , This year, more than 900 compa- a Top 50 Company for Diversity by Northrop Grumman, Rockwell Col- nies participated in the survey that Diversity Inc, a leading organization lins, , Chrysler, and Co- determines the 50 finalists on the that rates companies for diversity ca-Cola, among others. The full highly visible list. management. This major achieve- 2013 Top 50 list can be seen here. ment and recognition validates ef- forts by many in North America to “At BASF, we create chemistry for help BASF attract, retain and develop a sustainable future. One of the the best talent from all backgrounds, most important ways we do this is and create a diverse, inspiring and in- by recognizing, appreciating and clusive work environment. leveraging diversity. This important Top 50 distinction confirms we are This is the first time BASF has on the right track with our efforts made the Top 50 list, which in re- to form the best team, and use the cent years has included some of power of diversity as a competitive the world’s most successful com- advantage and key to personal and panies such as Procter & Gamble, professional growth,” said Hans BASF was recognized for the first time ever by Diversity Inc as a Top 50 Com- Kraft Foods, Colgate-Palmolive, Engel, Chairman and CEO, BASF pany for Diversity at a special gala in Johnson & Johnson, American Corporation. New York City. 5 Newsletter Sustainable Development 2/2013

Praise for sustainability initiative “Chemie³”

In their second review on the sus- ical industry in which employers, the tainability strategy of the Federal responsible trade union and experts Republic of Germany, international have agreed on a joint commitment experts in the field of sustainability called “Chemie³”. The Government have commended “Chemie³”, a should further encourage indus- tional report on German sustainabil- joint initiative of the German chemi- try-specific strategies and road- ity policy in 2012. cal industry. The experts’ report en- maps and push for a reporting sys- titled “Sustainability – Made in Ger- tem that is easy-to-understand and “Chemie³” started at the end of May many” was launched at the Federal informative for people both inside 2013. It is a joint initiative of the Ger- Government on September 23. It and outside of companies.” man business association VCI, the states: “We welcome more indus- IG BCE trade union and the em- try-specific sustainability strategies German chancellor Angela Merkel ployers’ associ- More that follow the example of the chem- commissioned this second interna- ation BAVC.

European Business Forum – Sustainability in Europe

How can BASF implement its “We tomers from a variety of industries During the EBF, the participants create chemistry” strategy more ef- and countries at the EBF, and also sent out a visible signal: In trib- ficiently across national, industrial showed the solutions that BASF ute to International Earth Day, they and cultural boundaries, deliver re- offers,” stated Jacques Delmoitiez, renovated and replanted parts of search and innovation to custom- then President of the Europe re- the Alwin Mittasch Park at BASF. ers in the European region, and gional division. “In emerging mar- Schwager and Delmoitiez agreed meet the needs of society now and kets especially, international com- that the EBF created a common in the future? The management panies like BASF play an important starting point to deliver sustainability team of the BASF region Europe role in promoting a more holistic initiatives and projects: “For BASF addressed these issues in collabo- approach to the topic of sustain- sustainable development means ration with representatives of the ability,” said Harald Schwager, combining long-term commercial Board of Executive Directors, divi- member of the Board of Executive success with environmental protec- sions and customers at this year’s Directors of BASF SE. tion and social responsibility.” European Business Forum (EBF) in Ludwigshafen.

“Sustainable development has many faces in a multifaceted region such as BASF’s European regional area, which extends from Siberia to the Arab Emirates and South Afri- ca. To address these differences, we discussed our understanding of Harald Schwager, Member of the BASF Board of Executive Directors, sustainability with selected cus- at the European Business Forum in Ludwigshafen, Germany. 6 Newsletter Sustainable Development 2/2013

BASF signs WASH pledge

BASF signed the “Pledge for Ac- cess to water, sanitation and hy- cess to Safe Water, Sanitation and giene at the workplace at an ap- Hygiene at the Workplace” (WASH) propriate level of standard for all of the World Business Coun- employees. The pledge was offi- cil for Sustainable Development cially introduced during World Wa- (WBCSD). By signing the pledge, ter Week in Stockholm, Sweden, More BASF commits itself to provide ac- on September 5, 2013.

BASF launches Nutrition Compact

On September 23, 2013, BASF launched a “BASF Nutrition Com- pact” at the UN General Assembly in New York.

The compact aims at further im- proving the nutrition of BASF’s more than 100,000 employees. Moreover, BASF pledges to support its part- ners and stakeholders in providing affordable access to essential nutri- tion to an additional 60 million peo- ple per year who live at risk of food The Nutrition Compact aims at improving access to and nutrition insecurity. essential nutrition to people living at risk of food insecurity.

German Global Compact Network: Reelection of steering committee

The business representatives of the steering committee of German Global Compact Network (DGCN) have been reelected September 2013. For the second time, Thorsten Pinkepank, Di- the committee. About 80 companies of DGCN and steers the office themat- rector Corporate Sustainability Rela- participated in the election. The com- ically. A list of all members of the steer- tions at BASF, was elected member of mittee defines the strategic orientation ing committee can be found here. 7 Newsletter Sustainable Development 2/2013

Read on:

Investments for agriculture in Asia Pacific GBI Business Voice Series – Thorsten Pinkepank, BASF Environmentally sustainable syngas production Bio-based acrylic acid process Applied sustainability for the foodstuffs industry (GC International Yearbook) Interview with Kurt Bock about Integrated Reporting (GC International Yearbook) Sustainability assessment of own office buildings BASF coatings protect wind turbine BASF receives Pierre Potier Award Mass balance method saves fossil resources

Events:

Beijing: Company conference on Human Rights Beijing: International CSR forum Istanbul: Green Business Conference Tianjin: IDA World Congress 2013 London: Sustainable Brands Conference

Contact Do you have questions or comments? We are looking forward to your suggestions. Picture Credits BASF SE Cover page BASF, Detlef Schmalow Corporate Sustainability Relations p. 2 Adapted from: Pfister et. al., 2009 Jacob-Nicolas Sprengel p. 3 (2 Photos) BASF Isabel Stoessel p. 4 BASF E-Mail: sustainability@.com p. 5 BASF Internet: www.basf.com/sustainability p. 6 BASF