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BASF and Sustainability Doç.Dr BASF and Sustainability Doç.Dr. Selçuk Denizligil, Mübahat Akın November 2016 1 | What is sustainability? 2 | BASF‟s strategy and goals 3 | The tools we developed to quantify sustainability 4 | From our tools: Sustainable Solution Steering 5 | From our services to customers: Opportunity Finding 6 | Examples from our sustainable solutions 2 BASF Personal Care What does sustainability mean? Sustainable development is about balancing economic, environmental and social needs – today and tomorrow Sustainable Development Economy Environment Social Responsibility 3 BASF Personal Care Demographic challenges set the stage for the future of the chemical industry Nine billion people in 2050 but only one earth Resources, Environment Food & Nutrition Quality of life & Climate Chemistry as enabler 4 BASF Personal Care Water • If countries don’t do dramatic changes in 15 years we will • Eğer ülkeler dramatik değişimler uygulamazsa,15 yıl içerisinde have 40% less water worldwide. dünya suları %40 azalabilir. • 658 million people in Africa don’t have access to water. • Sularımızın %75’i enerji üretimi için kullanılıyor. • Evidence suggests that two-thirds of the world population • Afrika'da 658 milyon insan suya erişemiyor. could be living in water-stressed countries by 2025 if • 2025 yılında dünya nüfusunun yarısının sağlıklı suya erişim current consumption patterns continue. sağlayamayacağı öngörülüyor. Energy Urbanization • Since 2000, 1 billion people moved to cities. • In 2007, for the first time World population in rural areas is higher than in the cities, 3.3 million. • In 2050, it is foreseen that two third of the World population will live in cities. • Urban life causes air and water pollution and changes climate. • Buildings consume up to 40% of the World’s energy. 6 BASF Personal Care United Nations Sustainable Development Goals Economy Environment Social Responsibility 7 BASF Personal Care Our sustainability understanding Contributing to meet Human beings consume society’s needs more more than the Earth can sustainably is the growth regenerate. driver for our business. On this journey, we need Balancing economic, to act decisively together environmental and social with and for our needs to find the best customers and other available solutions is stakeholders. essential to ensure a more sustainable future. 8 BASF Personal Care Integration of sustainability into our business decisions Enable our customers to develop Creating value more sustainable solutions Connect – in our team and with society Deliver excellence Reducing risk in our operations 9 BASF Personal Care SD benefit criteria for BASF solutions I/II SD Pillar SD criteria Description (exemplary) Sustainability Icon Economy Solution enables for cost savings along the value chain Cost savings Cost savings downstream Solution enables the conservation of biodiversity (e.g. solution of eco-toxicity or biodiversity Biodiversity challenges) Solution applied in the field of renewable energy technologies (e.g. wind, solar, hydropower) Biodiversity and renewables Solution based on sustainably sourced renewable raw materials Renewables Solution enables the use of sustainably produced renewable raw materials Solution with reduced carbon footprint in production Ecology Climate change Solution enables greenhouse gas savings downstream Climate change and energy Solution with reduced energy consumption in production Energy Solution enables energy savings downstream Solution enables a reduction of air pollutants (e.g. VOC) Emissions Solution enables for noise reduction Emission reduction (air, noise, soil) Solution enables a reduction of soil contaminants (e.g. chemicals, salts) Biodegradability SD = Sustainable Development 10 BASF Personal Care SD benefit criteria for BASF solutions II/II SD Pillar SD criteria Description (exemplary) Sustainability Icon Solution enables resource savings (e.g. phosphates, land, minerals) Resource efficiency Resource Solution enables a reduction, reuse or recycle of waste Waste reduction efficiency Solution enables a prolonged life span of the final product Durability Ecology (cont.) Solution enables water treatment and drinking water purification Solution with reduced water footprint in production Water scarcity Water and pollution Solution enables water savings downstream Solution enables a reduction of water emissions Solution enables a safer handling and use of chemical substances Health & Safety Health & Safety Solution enables an improved protection of workers and public health Society Solution which addresses the UN Sustainable Development Goals (e.g. reduction of child UN SDGs UN Sustainable mortality, eradication of extreme hunger and poverty, improvement of maternal health) Development Goals SD = Sustainable Development 11 BASF Personal Care Chemistry-based innovations Growth and technology fields Global needs Key customer industries Growth fields Technology fields Automotive Lightweight Composites Resources, Batteries for Mobility Materials, Environment Transportation Agriculture Systems & and Climate Enzymes Nanotechnology E-Power Management Functional Crop Care Food and Construction Energy & Resources Raw Material Nutrition Heat Management Change for Construction Organic Electronics Quality of Life Consumer Goods Electronics Plant Biotechnology White Biotechnology Water Solutions Wind Energy Health & Nutrition ... 12 BASF Personal Care Dialog with our shareholders Disclosure – Integrated Reporting Our integrated report documents BASF’s economic, environmental and social performance, illustrating how sustainability contributes to BASF’s success Integrated Report since 2007 Information in the BASF Report also serves as progress report on the implementation of the ten principles of the United Nation Global Compact BASF is Organizational Stakeholder with GRI 13 BASF Personal Care Overview of our goals Environment Energy and climate Water Emissions to air (by 2020) protection Drinking water -50 % Air pollutants -70% for production Greenhouse gases -40% (specific) Sustainable water 100 % Emissions to water management in Energy efficiency +35% Organic substances -80% water stress areas Reduce (specific) -10% Nitrogen -80% greenhouse gas Heavy metals -60% emissions of transported gas Health Health protection (each year) Health Performance Index comprises five criteria; Goal: score >0.9 (max. 1.0) Recognized occupational diseases Preventive medicine Medical emergency planning Health promotion First aid Safety and Occupational Safety Transportation safety Product safety security Work-related -80 % Transportation -70% Risk assessment (by 2020) accidents accidents for more than 99% of our products 14 Responsible Production Sustainability through Verbund Energy Verbund Logistics Verbund Infrastructure Verbund >€300 million >€600 million >€100 million annual cost savings annual cost savings annual cost savings Global reduction in carbon Example Ludwigshafen: avoidance Shared use of on-site facilities: emissions of 6.1 million metric of 7 million metric tons of freight/a = fire department, security, waste tons/a and reduction of waste 280.000 fewer truckloads water treatment and analytics Energy and Climate Combined heat and power plants increase energy efficiency Water Responsible use of water resources is key priority Enerji ve iklim koruma Su Çevre Hava emisyonu Sera gazları -40% Üretimde içme -50 % Havayı kirletenler -70% (2020’ye kadar) (belirli) suyu kullanımı Enerji verimliliği +35% Su emisyonu Taşınan gazların -10% Su sorunu olan 100% Organik maddeler -80% (belirli) sera gazı yerlerdeki üretim Nitrojen -80% emisyonlarını düşürmek tesislerinde sürdürülebilir su Ağır metaller -60% yönetimi Sağlık Sağlık Sağlık performans indeksi 5 kriterden oluşur; Amaç: Puan >0.9 (max. 1.0) (her yıl) Tespit edilen mesleki hastalıklar Koruyucu ilaç Acil tıbbi planlama Sağlığı iyileştirme İlk yardım Emniyet ve İş Güvenliği Nakliye emniyeti Ürün emniyeti Güvenlik İş kazaları -80 % Nakliye kazaları -70% %99’dan fazla üründe risk değerlendirmesi (2020’ye kadar) 17 Sustainability networks Examples of BASF‟s memberships Sustainability requires dialogue and partnership with stakeholders Multi-stakeholder initiatives Business associations & networks at corporate level Bi-lateral stakeholder consultations 18 BASF Personal Care Tools for sustainability Performance Measures Strategic Analysis and Risk Management Product Carbon Footprint Audits: – Environment Eco-Efficiency Analysis – Health – Safety AgBalanceTM Social Performance Assessment Sustainable Solution Steering Analysis of business opportunities and risks 19 BASF Personal Care Tools for sustainable development: Strategic analysis Eco-Efficiency Analysis State-of-the-art tool portfolio Views and compares both economic Support our customers and environmental advantages and on their sustainability journey disadvantages of products and processes across entire life cycle AgBalance® Unique and holistic method to evaluate sustainability in agriculture 20 BASF Personal Care A systematic approach: Sustainable Solution Steering Three-step process Step 1 Step 2 Step 3 Analysis of Evaluation and Development of sustainability needs categorization action plans for and trends in of product sustainability strategies, research and the value chain performance in the development, market application and market approach 21 BASF Personal Care We categorized all our products into four categories Our goal: Increasing the sustainability contribution of our solutions 22 BASF Personal Care Sustainable
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