Envt Managemnt Wrd Doc

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A PROJECT REPORT

ON

PROF INCHARGE: MR. JAYADEEP MANGESHWAR

ACADEMIC YEAR: 2014


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GROUP MEMBERS

Name Roll NoAamir Khan 17

Azharoddin Khan 19

Tabrej Khan 26

Wahiduzzaman Mohammad 35

Nikhat Shaikh 50

Abeerah Siddiqui 56


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INDEX

Topic Page No

Introduction 4

Chemistry and the environment 5

Environment Outlook for the Chemicals Industry 8

Environmental Trends and Outlook 11

Corporate Social Responsibility 13

Article 1 14

Article 2 18

Article 3 22

Tata Chemicals Limited 23

BASF 29

Pidilite 39

Conclusion 45

Bibliography 46


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INTRODUCTION

Environmental resource management is the management of the interaction and impact of

human societies on theenvironment.It is not, as the phrase might suggest, the management

of the environment itself. Environmental resources management aims to ensure

thatecosystem services are protected and maintained for future human generations, and also

maintain ecosystem integrity through considering ethical, economic, and scientific

(ecological) variables. Environmental resource management tries to identify factors affected

by conflicts that rise between meeting needs and protecting resources. It is thus linked

toenvironmental protection andsustainability.

The chemicals industry - which includes basic and speciality chemicals, consumer care

products, agrochemicals and pharmaceuticals - is also a major economic force which employs

millions of people around the world, and generates billions of dollars in shareholder valueand tax revenues for governments. It is more than twice the size of the world market for

telecommunications equipment and services, and accounts for about 7% of global income and

9% of international trade (WEC, 1995).

As with other large manufacturing industries, the chemicals industry can also have a negative

impact on human health and the environment when the production and use of chemicals are

not managed responsibly. From the use of non-renewable resources for fuel and feed stocks

(e.g. oil and gas), to the release of pollutants from factories during production, to the disposal

of final products that contain hazardous waste, each stage of the lifecycle of a productproduced by the chemicals industry can affect man and the environment.
http://en.wikipedia.org/wiki/Natural_environmenthttp://en.wikipedia.org/wiki/Ecosystem_serviceshttp://en.wikipedia.org/wiki/Environmental_protectionhttp://en.wikipedia.org/wiki/Sustainabilityhttp://en.wikipedia.org/wiki/Sustainabilityhttp://en.wikipedia.org/wiki/Environmental_protectionhttp://en.wikipedia.org/wiki/Ecosystem_serviceshttp://en.wikipedia.org/wiki/Natural_environment


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CHEMISTRY AND THE ENVIRONMENT: HELP OR HINDRANCE?

Environmental issues such as climate change, water pollution and renewable energy make the

news headlines and have become increasingly important in everyday life. Many people

perceive chemistry and the chemical industry as harmful to the environment. However, many

new advances and scientific researches in the field of chemistry are helping us to develop

more environment friendly materials and applications, while preserving the quality and the

lifestyle we expect.

Over the years, the industry and wider public have become aware of the damaging effects of

some past practices and the need to protect the environment. In the past, few were aware of

the potentially negative effects our modern lifestyle might have on the environment, and

rather saw only the positive potential for creating new, useful materials and products.

Chemicals produced by the chemicals industry are used to make virtually every man-made

product and play an important role in the everyday life of people around the world. Suchproducts can protect crops and increase yields, prevent and cure disease, provide insulation to

reduce energy use and offer countless other benefits that make life better for people.

Research in biological sciences and chemistry has revealed that industrial processes in

chemistry and petro chemistry could play a role in developing solutions to environmental

problems such as climate change, waste management, recycling, energy efficiency just to

name a few. Without chemists, we might never have truly understood these problems.

Profound changes have been made and still are being made - to provide alternative

solutions.

Industry has also developed a number of voluntary initiatives such as theResponsible Care

programme,to raise the standards in dealing with health and environment issues and establish

safe and sustainable transport systems in full accordance with regulation. As part of its

Responsible Care programme the industry publishes guidelines for the distribution and

handling of chemical substances that require appropriate precautions. All these efforts

combined with the new European chemicals legislation (called REACH) guarantees that

chemistry is carried out in a safer and more environmentally friendly way.

In parallel, chemists and petro chemists are now researching new methods that are moresustainable and environmentally friendly while maintaining the development of our economy

and our industry. Examples include:

Biofuels: transportation fuel derived from biomass. A wide range of biomass products suchas sugar cane, rapeseed, corn, straw, wood, animal and agriculture residues and waste can be

transformed into fuels for transport;

Bioplastics: production of plastic materials using natural sources such as plants, which arethen biodegradable;

Insulation: enhanced insulating materials to enable more energy-efficient homes andbuildings;
http://www.cefic.org/Templates/shwStory.asp?NID=471&HID=8http://www.cefic.org/Templates/shwStory.asp?NID=471&HID=8http://www.cefic.org/Templates/shwStory.asp?NID=471&HID=8http://www.cefic.org/Templates/shwStory.asp?NID=471&HID=8http://www.cefic.org/Templates/shwStory.asp?NID=471&HID=8


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Lightweight plastic compositeswhich help reduce cars and airplanes fuel consumption; Fuel cells: when used to power cars or motorbikes, hydrogen fuel cells produce water vapour

instead of exhaust gases;

New lighting technologies(such as Organic Light Emitting Diodes - OLEDS) whichproduce more light with less electricity;

Wind turbines and solar panelling: both rely on materials produced by the chemicalindustry. The metal blades of wind turbines have largely been replaced by blades made of

fibreglass-reinforced polyester to stand up to the severest weather.

Society tends to consider every man-made chemical as bad and everything natural as good.

Just because something is natural does not automatically make it good for the health or the

environmentor unsafe if its a man-made chemical. What looks more natural than burning

wood in on open fire for instance? In reality, smoke from open burning can be harmful to

both human health and the environment like other combustion processes.

Also, the whole life cycle of a product (from its creation through to its disposal) needs to be

taken into account when considering its impact. Did you ever realise that the impact of cotton

culture on the environment can be higher than making synthetic fibres such as polyester? The

reason for this is that cotton requires the use of enormous quantities of water, fertilisers and

pesticides.

Strengthening the science of chemistry through research and development is necessary to

allow us maintaining a comfortable life in harmony with the environment and nature. It

illustrates the greatest challenge of all disciplines of modern science, and most especially

with those that pertain to the environment - the integration of technology, nature and human

beings.

Combination effects of chemicals

Every day, we are typically exposed to numerous natural and man-made chemical substances.

For example, our engagement in basic everyday activities such as breathing and eating

exposes us to chemical substances. The European chemical policy and risk management

schemes have predominantly focused on the safety of individual chemical substances. These

efforts aim to protect public health and the environment by ensuring that no chemical

substance is present in the environment at levels that might cause harm.

Recent reports have suggested that when chemical substances, both natural and man-made,

are combined together (termed the combination effect) they might cause adverse effects to

human health and the environment, even if the individual chemical substances (i.e., natural

and man-made) are harmless. Although there is currently no evidence of such a comb ination

effect from typical environmental substance levels, it is critical that we consider thepossibility of harm.


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Therefore, the chemical industry is engaged with European and international bodies and

agencies to address this concern. Their collaborative efforts have revealed that, while it is

always true that further research could provide additional insights into such a complex issue,

there are now procedures and tools which can be applied to address the potential combination

effects of chemical substances.


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Environmental Outlook For The Chemicals Industry

Chemicals are used to make virtually every man-made product and play an important role in

the everyday life of people around the world. Such products provide protection for crops and

increase yields, prevent and cure disease, provide insulation to reduce energy use and providecountless other benefits that make life better for people. But, while the chemicals industry has

made good progress reducing its overall environmental footprint, chemicals can also create a

negative impact on human health and the environment when their production and use are not

managed responsibly. Although the impacts are complex and often unknown or sometimes

open to debate, some negative effects are well documented, such as chemicals found in the

environment that are persistent, bio accumulative and/or toxic (e.g. PCBs, dioxins). Most

recently, concern has been expressed about chemicals which interfere with the normal

function of hormonal systems of humans and animals (i.e. endocrine disrupters), and

substances which impact on childrens health.

The industry has made good progress in reducing emissions from chemical plants and the

energy they use, but the current lack of safety data on chemicals and the changes that will

occur in the industry over the coming years pose major challenges to policy makers.

The chemicals industry is one of the most regulated of all industries. In addition to the

regulation of its products, it is also subject to a number of requirements aimed at minimising

releases of chemical substances during manufacturing and processing. The chemicals

industry in OECD countries has made good progress in reducing emissions and energy use

and in designing safer plants.

Much effort has been spent over the years on testing and assessing chemicals, but there are

still many questions and gaps in our knowledge about their characteristics, effects and use

patterns, and resultant impacts on man and the environment. The lack of knowledge about

most chemical substances on the market and the products in which they are used, and

consequently the uncertainty about whether workers, the public and the environment are

being adequately protected, is a major challenge to policy makers today. As the chemicals

industry is becoming more global in nature, there will be additional challenges (and

opportunities) for governments and industry to better manage chemical safety.

The industry

The chemicals industry is very diverse, comprising basic or commodity chemicals; speciality

chemicals derived from basic chemicals (adhesives and sealants, catalysts, coatings,

electronic chemicals, plastic additives, etc.); products derived from life sciences

(pharmaceuticals, pesticides and products of modern biotechnology); and consumer care

products (soap, detergents, bleaches, hair and skin care products, fragrances, etc.). The globalchemicals industry today produces tens of thousands of substances (some in volumes of


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millions of metric tonnes, but most of them in quantities of less than 1000 tonnes per year).

The substances can be mixed by the chemicals industry and sold and used in this form, or

they can be mixed by downstream customers of the chemicals industry (e.g. retail stores

which sell paint). It is important to note that most of the output from chemical companies is

used by other chemical companies or other industries (e.g. metal, glass, electronics), andchemicals produced by the chemicals industry are present in countless products used by

consumers (e.g. automobiles, toys, paper, clothing).

The sectors of the industry

Chemical industry is divided into 4 different groups: Basic chemicals, speciality chemicals,

consumer care products, and life science products. Keeping in mind that the lines between

them can become somewhat blurred, the general characteristics of each are described below.

Basic chemicals (or commodity chemicals): Basic chemicals represent a mature market,

which is illustrated by the fact that 46 of the top 50 highest volume chemicals in 1977 were

still in the top 50 in 1993. Not only has the composition of this group remained largely

unchanged, but also the rank order in production volume has not varied much (Wittcoff and

Reuben, 1996). The industry is characterised by large plants, mainly using continuous - as

compared to batch - operations, with high energy consumption, low profit margins, and a

high degree of cyclicality over the business cycle due to fluctuations in capacity utilisation

and feedstocks (or raw materials). Markets for basic chemicals are primarily in other basicchemicals, speciality chemicals, and other chemical products, as well as in other

manufactured goods textiles, automobiles, appliances, furniture, etc.) or in the processing

applications (pulp and paper, oil refining, aluminium processing, etc.) (Swift, 1999).

Speciality chemicals: These chemical substances (e.g. adhesives and sealants, catalysts,

coatings, electronic chemicals, plastic additives), which are derived from basic chemicals, are

more technologically advanced products than basic chemicals. They are manufactured in

lower volumes than basic chemicals, give higher profit margins and have less cyclicality in

their business cycle. Speciality chemical products have a higher value-added because they

cannot easily be duplicated by other producers or are shielded from competition by patents.

Although dedicated and continuous operations are typical, there are also a growing number of

plants that are general-purpose synthesis operations.

Life science products: These include pharmaceuticals, products for crop protection and

products of modern biotechnology. Plants generally use batch-oriented synthesis or

formulating operations where quality control and a clean environment are critical.

Technological advantages are extremely important and R&D spending for this sector is the

highest among all industries.


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Consumer care products:This includes soap, detergents, bleaches, laundry aids, hair care

products, skin care products, fragrances, etc. Consumer care products is one of the oldest

segments of the chemistry business. These products are formulated products, employing what

is often simple chemistry but featuring a high degree of differentiation along branding lines.

Research and development expenses are rising and many of these products are becominghigh-tech in nature. Consumer care products are generally formulated in batch-type

operations, although some products (e.g. detergents) are manufactured in large dedicated

plants. Formulating involves mixing, dispersing, and filling equipment rather than reactors

for chemical conversions.


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Environmental Trends and Outlook

Effects on the environment of the chemicals industry and its

products

While the chemicals industry has brought a number of important products to the market to

improve health, provide greater safety, and enhance the quality of life, in doing so it has also

released substances into the environment (or its substances have been released during use)

that have led to negative impacts on man and the environment (e.g. CFCs, PCBs, PBBs).

Over the entire life of a chemical product (cradle to grave), there is a potential for a

detrimental impact. In response to government mandates (legislative, regulatory) or on the

initiative of industry itself (e.g. voluntary reductions, environmental management systems),

various techniques have been employed for reducing releases at each of these stages. These

include using pollution control equipment (e.g. closed or floating roof storage tanks, particle

collection systems, thermal incinerators, waste treatment facilities), designing processes to

minimise releases, and banning the marketing of a substance or limiting some of its uses.

Even so, concerns have been raised regarding chemicals with known effects (e.g. endocrine

disrupting substances, persistent, bio accumulative and toxic substances) and their

concentrations in the environment, as well as other substances in the environment about

which little is known.

Potential impacts

The following describes where in the lifecycle of a chemical product impacts can occur to

man and/or the environment, from the extraction of raw materials all the way to the use of the

final product and its disposal. These are theoretical impacts for illustrative purposes only, and

should not be interpreted to mean that significant impacts actually occur at each stage. As an

example, First, as a major user of raw materials, both for energy consumption (7% of world

energy use in 1998) [IEA, 2000a] and as feed stocks, the chemicals industry can significantly

impact on the supply of non-renewable resources. And, as these materials are, in general,

based on hydrocarbons, combustion of these sources can lead to emissions of carbon dioxide

(CO2) - a greenhouse gas (GHG) and volatile organic compounds (VOCs) and nitrogen

oxides (NO2) which contribute to the formation of tropospheric ozone or smog. Next, the

processing of the raw materials and feed stocks can result in the release of hazardous

pollutants to the environment (e.g. propylene) from emission stacks, discharge pipes, flanges,

waste ponds, storage tanks and other equipment. Of all the sectors of the chemicals industry,

the basic chemical sector is generally the largest emitter (by volume) of such pollutants

because these bulk chemicals are usually produced in high volumes at large plants.

During normal operations, workers can be exposed to pollutants in a gaseous or liquid form,

for example by inhaling a pollutant emitted from leaks in equipment or splashing thesubstance on the skin or in the eyes. Larger accidents involving chemicals can also occur due


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to equipment failures. Major spills can result in inadvertent releases to workers, the

surrounding neighbourhood or perhaps even communities and the environment at some

distance from the plant.

At the conclusion of each stage of the process, the product is transported, via pipeline, rail,

barge/tanker or truck, to the next user for further processing. This can be as close as another

part of the same plant, or as far as another company located in another country. Here, too,

accidents can occur leading to exposures of the transport workers and, perhaps, the

surrounding community and environment.

The final user of a chemical product can be another chemical company, other industries, or

consumers. Depending on the product, and how it is used, there also can be exposures during

this end use phase. For instance, chemicals such as plasticisers and stabilisers found in

plastics could leak out during consumer use. Similarly, leakage of brake fluids from

automobiles and disposal of these substances (generally classified as hazardous waste) canimpact on the environment. The use of some consumer products can have a global impact, as

is the case with refrigerants containing CFCs that have led to a depletion of the ozone layer.

Certain chemicals released by the chemicals industry in its production processes can lead to

a direct or indirect impact on man and/or the environment. Exposure to certain hazardous

substances- such as PCBs, DDT, PBBs, heavy metals, endocrine disrupting substances - can

lead to a direct toxicological effect on man or the environment from short- or long-term

exposure. Other substances -such as VOCs, NO2, and SO2 - are cause for concern after they

react with other substances. For instance,VOCs and NO2 promote the formation of smog and

SO2 is responsible for the formation of acid rain.

CFCs are non-flammable and non-toxic, butthey react with other substances in the stratosphere to destroy some of the ozone layer and

this, in turn, can lead to a greater incidence of skin cancer.

While the chemicals industry is, to some degree, responsible for emissions of greenhouse

gases, substances which promote the formation of tropospheric ozone, and CFCs which

deplete stratospheric ozone.


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Corporate Social Responsibility

Definition

A companys sense of responsibility towards the community and environment (both

ecological and social) in which itoperates.Companies express thiscitizenship(1) through theirwaste andpollutionreductionprocesses,

(2) by contributing educational and socialprograms,and

(3) byearningadequatereturns on theemployedresources.

Corporate social responsibility encompasses not only what companies do with their profits,

but also how they make them. It goes beyond philanthropy and compliance and addresses

how companies manage their economic, social, and environmental impacts, as well as their

relationships in all key spheres of influence: the workplace, the marketplace, the supply

chain, the community, and the public policy realm.

The term "corporate social responsibility" is often used interchangeably with corporate

responsibility, corporate citizenship, social enterprise, sustainability, sustainable

development, triple-bottom line, corporate ethics, and in some cases corporate governance.

Though these terms are different, they all point in the same direction: throughout the

industrialized world and in many developing countries there has been a sharp escalation in

the social roles corporations are expected to play. Companies are facing new demands to

engage in public-private partnerships and are under growing pressure to be accountable not

only to shareholders, but also to stakeholders such as employees, consumers, suppliers, local

communities, policymakers, and society-at-large.

Laggard firms and governments can sometimes use the existence of corporate social

responsibility programs to shirk their roles. Government ultimately bears the responsibility

for levelling the playing field and ensuring public welfare. In order for corporate social

responsibility programs to work, government and the private sector must construct a new

understanding of the balance of public and private responsibility and develop new

governance and business models for creating social value.
http://www.businessdictionary.com/definition/responsibility.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/operate.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/citizenship.htmlhttp://www.businessdictionary.com/definition/waste.htmlhttp://www.businessdictionary.com/definition/pollution.htmlhttp://www.businessdictionary.com/definition/reduction.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/program.htmlhttp://www.businessdictionary.com/definition/earnings.htmlhttp://www.businessdictionary.com/definition/adequate.htmlhttp://www.businessdictionary.com/definition/returns.htmlhttp://www.businessdictionary.com/definition/employment.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/resource.htmlhttp://www.businessdictionary.com/definition/employment.htmlhttp://www.businessdictionary.com/definition/returns.htmlhttp://www.businessdictionary.com/definition/adequate.htmlhttp://www.businessdictionary.com/definition/earnings.htmlhttp://www.businessdictionary.com/definition/program.htmlhttp://www.businessdictionary.com/definition/process.htmlhttp://www.businessdictionary.com/definition/reduction.htmlhttp://www.businessdictionary.com/definition/pollution.htmlhttp://www.businessdictionary.com/definition/waste.htmlhttp://www.businessdictionary.com/definition/citizenship.htmlhttp://www.businessdictionary.com/definition/company.htmlhttp://www.businessdictionary.com/definition/operate.htmlhttp://www.businessdictionary.com/definition/environment.htmlhttp://www.businessdictionary.com/definition/community.htmlhttp://www.businessdictionary.com/definition/responsibility.html


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Article 1

Corporate social responsibility: Pursuing the triple bottom line

Growth in green: BASF cites sustainability as a growing starting point for new business

opportunities.

The chemical industry continues to face widespread public mistrust despite being an enabler

of advances that are key to solving global challenges as well as efforts to improve product

and process safety. Increased transparency and stakeholder dialogue about industrys

considerable corporate social responsibility efforts should help reshape public perception.

Despite developing many of the technologies key to solving the global challenges of climate

change, population growth, and sustainable development, the chemical industry is rankedamong the least-trusted industries (p. 23) in a recent survey of the general population.

Industry executives say corporate social responsibility (CSR) efforts, including a focus on

triple bottom line factors, measure social, environmental, and economic impactsalso

known as the three Ps of people, planet, and profitsand increased dialogue and

transparency with stakeholders are key to addressing this mistrust.

While most of the public recognizes that chemicals are essential and improve the quality of

life, the public also often distrusts the chemical industry, says Godefroy Motte, chief

sustainability officer at Eastman Chemical. We as an industry recognize the need to work

with all stakeholders in addressing this mistrust. Industry needs to be more transparent about

its sustainability efforts to date and where progress still needs to be made to improve its

image, Motte says.

Thorsten Pinkepank, director corporate sustainability relations at BASF, says that making the

enabling role of chemistry for sustainability solutions more transparent to consumers has

been a challenge. Over the past 20 or 30 years, the chemical industry, including BASF, has

learned that transparency is the foundation for building public trust. We therefore share

information about us and what we do; how and why we do it. We report our progress

annually.

BASF engages with its stakeholders through dialogue, projects, and partnerships, Pinkepank

says. Industry initiatives such as Responsible Care and the Global Product Strategy are

effective approaches. As part of our Responsible Care management system, we have set

ourselves ambitious goals for environmental and health protection, safety, and security. We

assess our progress on a yearly basis and publicly disclose the status in our externally audited,

integrated report.

Debra Phillips, managing director for Responsible Care at ACC, says CSR is no longer just

about measuring and reporting what happens within a companys fence line. CSR has

evolved to incorporate a more holistic perspective across the supply chain. The chemical


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manufacturing industry is evolving alongside [CSR] by assessing our industrys overall

impacts and contributions to the entire supply chain, including innovations that contribute

positively to life-cycle impacts of products that use chemistry, she adds.

CSR efforts provide benefits beyond improving industrys image, Pinkepank says. The

strategic and organizational implementation of sustainability helps us to identify risks in an

early stage while simultaneously opening up new business areas for BASF, he adds. In

order to minimize risks, we set globally uniform environmental, safety, security, health

protection, product stewardship, and compliance standards, as well as labor and social

standards. We ensure that sustainability is integrated into the development and

implementation of our business units strategies and research projects.

Regaining public trust

Producers acknowledge that industry faces an uphill climb. Past accidents have made thepublic skeptical of industrys efforts, while misinformation and lack of effective chemicals

management legislation in the United States have caused consumers to question whether

toxic chemicals are in everyday items. Healthy Child Healthy World released a report in

January entitled The Toxic Takeover of Baby Nurseries: Chemicals of Concern Found in

Almost Every Common Product and Furnishing.

As detection science has become more advanced, even the most minute amounts of a

chemical raise the potential for concern. A Campaign for Safe Cosmetics report in 2009

found trace amounts 1,4-dioxane, classified by EPA as a probable carcinogen, in a number of

leading baby shampoos. Johnson & Johnson (J&J) notes that 1,4-dioxane is a by product of

the process that makes cleansers mild and non irritating; is found naturally in some foods,

including tomatoes and coffee; and is only measured in the parts-per-million range in its

products.

Nonetheless, the company decided to take action to limit even those trace amounts.

Numerous regulatory agencies around the world have studied 1,4-dioxane and determined

that it poses no harm at the trace levels found in personal care products, J&J says. Still,

many people have expressed their concern, and we want you to have complete confidence

that the levels in our beauty and baby-care products are extremely low. So, were in theprocess of reducing them even further.

Pressure is being felt along the entire supply chain. The Campaign for Safe Cosmetics issued

a report late last year ranking retailers on their commitment to cosmetics safety. Retailers

that sell personal-care products are the gatekeepers of safety for their customers, says Janet

Nudelman of the Campaign for Safe Cosmetics and the Breast Cancer Fund in a statement.

If the nations biggest retailers commit to stop selling cosmetics with toxic chemicals linked

to disease, manufacturers who want to keep selling to those retailers will comply. There is a

rich history of retailers using their purchasing power to effect positive market change. When


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retailers said no to [bisphenol A (BPA)] in baby bottles or to old-growth lumber, the market

responded.

Retailers are already responding, with a push for more sustainable packaging and the

elimination of certain chemicals from finished products. Walmart in 2006 announced that it

would ban three substances: propoxur and permethrin, both used in household insect-control

products; and nonylphenol ethoxylates, an ingredient in some cleaning products. Walmart

later announced it would not sell certain childrens products containing BPA and launched an

initiative to reduce phosphates and increase use of more sustainable packaging.

The Consumer Specialty Products Association (CSPA) says under its product stewardship

initiative Product Care, member companies voluntarily agree to follow a code of management

best practices and adhere to a set of principles that include an emphasis on protecting health,

promotion of safety and environmental consideration through product design, and

anticipation of product disposal needs. The program is a platform for downstream specialtyproduct manufacturers and marketers to promote the production and distribution of safe and

effective formulated products. The program interacts upstream and downstream with other

recognized initiatives such as Responsible Care, Responsible Distribution, and the Retail

Sustainability Initiative, CSPA says.

Phillips says the chemical industry has a role to play in making sure chemicals are used safely

and responsibly along the supply chain. ACC recently formed a value chain outreach

committee to reach relevant value-chain representatives and provide downstream users with

data and background to make science-based procurement and policy decisions informed by

sustainability and safety considerations, she says. We are reaching out further down the

value chain stream than we have done in the past to provide our value chain partners with

information not only about the safety of our products but also about the energy efficiency of

our plants and manufacturing processes that contribute to a more sustainable overall

footprint, she says.

ACC and its member companies also recently developed a new Responsible Care Product

Safety Code, a comprehensive set of commitments that each ACC member will make with

respect to how it develops information and assesses, manages, and communicates the safety

of its chemical products, Phillips says. The code champions transparency, accountability,and science-based product development. It goes above and beyond what is required by law

[and] adopts industry best practices, and its implementation will be validated by independent,

third-party auditors.

Motte says social media and the rapid sharing of information have boosted visibility and

knowledge sharing, a phenomenon that creates both opportunities and challenges. This is

why transparency with all of these groups is so important. Many chemical companies and

associations have worked to improve their communications and engagement with

stakeholders to build trust, but it has been and will continue to be an ongoing journey, Motte

adds.


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BASF has set up 78 CAPs worldwide, mostly at its larger production sites, Pinkepank says. A

CAP is a forum for open and honest dialogue between citizens and plant management,

Pinkepank says. By encouraging a two-way flow of information, we hope to enhance

communication with the communities in which we operate.

Triple bottom line

No matter the industry, CSR is supposed to be a win-win by committing to operating a

business with a focus on improving performance on triple bottom linefactors that measure

impacts on people, the planet, and profits.

For the chemical industry, the easiest link to make between CSR and the bottom line are

savings that come through reduced energy and resource use. Companies are quick to note,

however, that the most important benefit comes from the innovation cycle: integrating CSR

into business practices fosters innovative ideas and practices and leads to improvedcompetitiveness.

Ensuring safety, minimizing our environmental impact, and complying with all applicable

laws and regulations are the only path[s] to earning and maintaining public trust, Pinkepank

says. That is why for BASF sustainable development means the combination of long-term-

oriented economic success with environmental protection and social responsibility. The

strategic and organizational implementation of sustainability helps us to identify risks in an

early stage while simultaneously opening up new business areas for BASF. In the future,

sustainability will increasingly become a starting point for new business opportunities.

At Eastman, innovation and sustainability work together to drive business results. Growing

and maintaining a pipeline of sustainably advantaged products is a core element of our

growth strategy, Motte says. Eastmans business philosophy embraces the triple bottom

lineeconomic growth, environmental stewardship, and social responsibility. In fact, we

leverage the symbiotic relationship between innovation and sustainability to drive growth and

operational excellence. We make our operations more efficient, minimize risk across our

business, deepen our customer relationships, and realize new growth opportunities.


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Article 2

Is Indian chemical industry ready for green march?

TheIndian chemical industry,currently valued at $ 108 billion, has been growing at a robust

rate. With manufacturing landscape shifting to Asia, India, which currently accounts for only3% share of the global chemical market, has the potential to emerge as one of the major

destinations for chemical companies worldwide. But for this to happen, industry will have to

improve efficiency and adhere to global environment & quality norms.

Sustainable development is critical to foster the growth of the Indian chemical industry. It

forms the central foundation for responsible corporate governance, said Vipul Shah,

Chairman, CEO & President,Dow Chemical International Pvt Ltd. He added, Being an

energy intensive industry, which touches various aspects of human life every day, the Indian

chemical industry needs global, uniform standards in environmental administration. For

maximum impact,sustainability must be central to the company strategy, engrained in the

culture and embedded in the reward structure. The organisation should be cognisant of where

the barriers are to delivering on the goals and where the strengths are to build on.

Dow India'sVipul Shah

Economic growth has been focal point of the policy makers for overall development of the

country. While this is true, there has been an increased need to do it in an environmentally

benign way. Balancing ecology with economy is the way forward to ensure sustainable

development. Globally, the chemical industry has been one of the early adopters of eco-

friendly processing by investing in green technologies.

R Mukundan,Managing Director,Tata Chemicals Ltd, said, From being limited to corporate

philanthropy, sustainability now is firmly embedded into all the business areas and is one of

the important strategic parameters for any business decision. Given the universe we operate

in, it becomes imperative that we incorporate processes that are sustainable.

The Five Year Plan document (2012-2017) for the chemical industry stresses on

sustainability particularly resource and environment sustainability. Water, environmental

impact, raw materials, safety over lifecycle and energy use are some of the issues grappling

the industry. Indian chemical companies will have to invest in innovative solutions to find

appropriate answers to these challenges.
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Prasad Chandran, Chairman, BASF Companies in India & Head South Asia believes that the

motivation for sustainability has changed over the years. Shareholders demand enhanced

value for their investments, consumers want better quality products, employees need

conducive work-culture and the society supports industrialisation that is in harmony with the

environment. The common thread that links them all is - sustainability. And, this I believe isa companys License to Operate. More so, for the chemical industry as it is perceived to be

an enabling industry. It offers innovations and technological improvements, which aid the

growth of almost every industry today, in a profitable and sustained manner, he added.

BASF India Prasad Chandran

Taking full responsibility

While there is an agreement in the Indian chemicals industry that manufacturers should act

responsibly, experts feel that there is the need to differentiate such responsible companies

through Responsible Care certification. The government should frame policies to incentivise

companies, who are complying and acting responsibly, and not treat them at par with those

who do not. With sustainability as one of the focus areas of the National Chemical Policy, it

will encourage companies to seek Responsible Care certification.

Mukundan said, Within the chemical industry, the Responsible Care Initiativeis a huge step

forward in the campaign to make sustainability as part of companies business decision. The

Responsible Care initiative acts as an enabler for continuous improvement in SHE

performance, together with open and transparent communication with stakeholders. The role

of top management is vital in ensuring chemical industry appreciates people, planet and profit

through same lenses across the supply chain. This will also aid in making the industry more

organised, responsive and inclusive.


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Responsible Care: Ensuring safety beyond the factory walls

Chemicals are used in all products that one consumes/uses every day; they have become

indispensable. In spite of this fact, the perception among general public about the industry,

which manufacturers these chemicals, is low. While many accidents in past have resulted in

creating this perception, the lack of communication between the chemical industry and

society is also responsible. Realising the importance to solve this challenge, the Canadian

Chemical Producers Association in 1985 launchedResponsible Care (RC), an unique global

initiative that drives continuous improvement in health,safety and environment (HSE)

performance, together with open and transparent communication with stakeholders.

Adoption of Responsible Care means that companies will endeavour to use green chemistry,

use less hazardous materials, save natural resources, conserve energy, and drastically reduce

hazardous releases to environment. The possibility of any disaster must be eliminated. It is

also necessary to provide positive and genuine information to public about the contribution of

chemical industry. Open and effective communication is the key to build the trust and

confidence of community, said Yogesh Kothari,President,Indian Chemical Council (ICC),

and CMD,Alkyl Amines Chemicals Ltd.

R Mukundan, Managing Director, Tata Chemicals Ltd, added, Responsible Care is an

effective way of stakeholder engagement for the chemical industry. This is an important key

to remain competitive in the global market space whilst honouring the social responsibilities

of operational and product safety and risks. Globalisation of markets requires improved

harmonisation of chemical management systems at national, regional and worldwide level.

Kapoor added, The main reason that Responsible Care should be adopted by chemical

manufacturing companies is that it is in their best interests considering all aspects that are

covered by this initiative. This goes from a range of safety and health of employees to safe

handling of hazardous material to waste minimisation and management to sustainable

practices incorporated in plant design, high level of product stewardship to well organised

emergency response systems.
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THE JOURNEY SO FAR

RC was introduced in India in 1993 and since then ICC has been taking proactive initiative to

propagate this concept in India. In an effort to spread the RC movement in India, ICC is

conducting various awareness workshops, programs designed on new technologies, in

collaboration with International Council of Chemical Association (ICCA) through American

Chemistry Council and the industry leaders. ICC is seeking technological support from

developed countries and the leading international companies to provide support to chemical

industry at large in India, informed Kothari.

Number of companies looking to adhere to RC code from India has been increasing. More

than 24 Indian chemical companies have already passed the audit process and are allowed to

use the Responsible Care logo to differentiate them from the other manufacturers. And this

number is expected to increase in coming days as companies realise the benefits of RC. We

see a far better response from companies wanting to become RC companies. May be surge is

too strong a word, but there is definitely a growing awareness of the need for RC initiatives to

be adopted on an urgent basis as the chemical industry realises that this is in the best interests

of the industry given the history of bad boy image as well as a growing awareness all over the

world on Responsible Care practiced by the industries, said Kapoor.

Companies adhering RC code believe that the logo enhances their image and also gives them

an opportunity to be in the list of approved suppliers of the global customers, who are

increasingly looking at sustainability in their supply chain. RC assists companies to comply

with environmental, health and safety legislations and demonstrates an ongoing commitment

to corporate social responsibility. Thus, RC helps to improve overall brand image and build acompanys reputation with its stakeholders including its employees, customers, partners,

regulatory authorities, and general public, elaborated Mukundan.

Some Of The Benefits Of Responsible Care

Safe and responsible handling of chemicals through the entire life cycle builds publictrust and confidence in chemicals and the companies practicing RC

Reduces pollution & water consumption, improves energy efficiency and usage ofrenewable energy

Helps build informed, protected society and sustainable future for everyone Improves business management efficiency by better targeting of worthwhile market

opportunities

Reduces the likelihood of unnecessary capital and other expenditure when it becomesclear that risks outweigh further investment in chemical development

May reduce insurance premiums due to reduction of risks. The developed countrieshave already realised the benefit. ICC is in discussion with insurance companies.

Initial response is positive.


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Article 3

CSR spending in chemical industry to rise due to Companies Act, 2013

The newCompanies Act,2013, which mandates profitable companies to spend every year at

least 2% of their average net profit over the preceding three years onCSR works, is expectedto increase spending by the chemical industry. The new Companies Act will certainly help

in adding value and increasing companies participation in CSR initiatives. Companies will

be obliged to spend a portion of the profit which will directly support the under privileged

sections. This will not only lead to benefit in specific areas but also the overall sections

wherever support is required, opined Dr Joerg Strassburger, Managing Director and Country

Representative, LANXESS India

This mandatory CSR-spend rule will apply from fiscal 2014-15 onwards. Those companies

that have a turnover of Rs 1,000 crore or more or net worth of Rs 500 crore or more or netprofit of Rs 5 crore or more will have to comply. Since it is has been mandated in the

Companies Act, it will definitely lead to increase in spends in companies who have not

already invested in CSR initiatives. The ones who have invested and met the criteria will

perhaps continue at the current levels, said Ruby Thapar, Director Public and Government

Affairs, Dow Chemical International Pvt Ltd.

She added, Overall, the CSR spend by corporate India post implementation of the new Bill

is touted at Rs 15,000-18,000 crore, but one is not clear if this will arise only out of new

investments in CSR or if it will be an overall increase (including the current spends).

Experts believe that as a result of new Companies Act more chemical companies are expected

to increase their sustainability efforts. Companies are looking beyond the short-term gains.

In fact, companies, which have already earnedResponsible Care code, are likely to be in

better position to comply the Companies Act 2013.

Sanjay Choudhary, Chief Sustainability and Technology Officer, Tata Chemicals Ltd, said,

The new Companies Act on CSR spending will create the benchmark for minimum

spending, however, the philosophy at the Tata Group has been on maximising impacts. The

life cycle assessment of value creation from such spends will only help understand the true

benefits. This is an opportunity for the corporate to shift the business strategy in favour of the

long term and integrating sustainability and CSR into their brand promise and make

meaningful impact with the large corpus of funds that they would be generating.
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Tata Chemicals Limited is a global company with interests in businesses that focus on

LIFE: Living, Industry and Farm Essentials. The story of the company is about harnessing the

fruits of science for goals that go beyond business.

The story began in Mithapur, Gujarat in western India with the creation of a plant that would

raise a wealth of marine chemicals from the ocean, with the potential to touch human lives in

many ways. From these humble beginnings a market-leading international business has been

created, with operations across four continents.

Through its living essentials portfolio the company has positively impacted the lives of

millions of Indians. Tata Chemicals is the pioneer and market leader in Indias brand ed

Iodised salt segment. With the introduction of an innovative, low-cost, nanotechnology-based

water purifier, it is providing affordable, safe drinking water to the masses.

Tata Chemicals is the worlds second largest producer of soda ash with manufacturing

facilities in Asia, Europe, Africa and North America. The companys industry essentials

product range provides key ingredients to some of the worlds largest manufacturers of glass,

detergents and other industrial products.

With its farm essentials portfolio the company has carved a niche in India as a crop nutrients

provider. It is a leading manufacturer of urea and phosphatic fertilisers and, through its

subsidiary, Rallis, has a strong position in the crop protection business.

The Tata Chemicals Innovation Centre is home to world-class R&D capabilities in the

emerging areas of nanotechnology and biotechnology. The companys Centre for Agri-

Solutions and Technology provides advice on farming solutions and crop nutrition practices.

The company has also entered into a JV with Singapores Temasek Life Sciences Laboratory

(Joil) to develop jatropha seedlings to enable bio fuels capability. In line with its mission,

serving society through science, the company is applying its expertise in sciences, to

develop high-tech and sustainable products.
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Businesses

Headquartered in Mumbai, India, Tata Chemicals is a global company with a range of

business interests focusing on three sectors living essentials, industry essentials and farm

essentials or LIFE. The Tata Chemicals group is the worlds second-largest producer of sodaash with a presence in India, Kenya, the UK and the US.

Tata Chemicals Magadi

Formerly known as Magadi Soda Company, Tata Chemicals Magadi - a part of Tata

Chemicals since 2005 - occupies a significant place in the African economy. It is Africa's

largest soda ash manufacturer and one of Kenya's leading exporters. Established in 1911,

Tata Chemicals Magadi has been producing natural soda ash at Lake Magadi, Kenya, for a

hundred years.

Tata Chemicals Europe

Tata Chemicals Europe (formerly Brunner Mond) is one of Europe's leading producers of

sodium carbonate, salt and sodium bicarbonate and other products. Established in 1874, it

became a part of Tata Chemicals in 2005. The company is headquartered in Northwich, UK,

and has manufacturing operations in Cheshire. In 2011, Tata Chemicals Europe expanded its

product portfolio by acquiring British Salt, UK's leading manufacturer of pure dried vacuum

salt products.

British Salt

British Salt, UK's leading manufacturer of pure dried vacuum salt products, became a part of

the Tata Chemicals group in 2011. British Salt produces approximately half of the UKs pure

salt used in applications ranging from food processing to chemicals production.

Tata Chemicals North America

Established in 1884, Tata Chemicals North America is one of the world's leading producers

of high quality soda ash. Formerly known as General Chemical Industrial Products, it became

a part of Tata Chemicals in 2008. Tata Chemicals North America is headquartered in New

Jersey with manufacturing facilities at Green River, Wyoming, US.


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Corporate Social Responsibility

Tata Chemicals Mission, Vision and Values are deeply rooted in the principles of

sustainability.

For the company, sustainability encompasses stakeholder engagement, environmental

stewardship, creating economic value, promoting human rights and building social capital.

Tata Chemicals supports the UN Global Compact and is committed to reporting its

sustainability performance in accordance with GRI guidelines. The company actively works

towards improving its eco-footprint with a policy of avoid, reduce and reuse. Resource

optimisation, alternative sources of fuel and raw materials, and maximising reuse and

recycling are key drivers in operations.

The company has been recognised for its clear commitments to sustainability and its good

environmental management practices.

Care for the community

For several decades now, the company has consistently demonstrated its concern for the

community (both internal and external) and a respect for its environment and the local

ecology. In India, the townships of Mithapur, Babrala and Haldia are unique examples of

corporate-community bonding where community initiatives go hand in hand with localinfrastructural development schemes such as watershed management and rural health and

education. TheTata Chemicals Society for Rural Development (TCSRD) does stellar work in

furthering community development along several vectors.

In UK,Tata Chemicals Europe has set up the Brunner Mond Employees Charitable Trust to

support deserving causes in the mid-Cheshire area. In Kenya, Tata Chemicals Magadi

provides much-needed medical facilities and support to the local Maasai community. In many

cases, Tata Chemicals is focusing on building sustainable business operations through

partnering with dedicated not-for-profit organisations, government bodies and local

authorities.
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Inclusion

Tata Chemicals' approach has always been inclusive and is based on participatory

development principles. The company has taken technology to rural India by setting up rural

BPO centres that provide new age employment opportunities to the non-urban population.

Another inclusive growth model is theTata Kisan Sansar network in India that encouragesrural entrepreneurship, capability building and co-creating value with farmers. In Kenya, Tata

Chemicals Magadi follows a policy of building livelihood opportunities for the local

communities.

Clean climate

In recent times, Tata Chemicals' sustainable enterprise strategy has focused on ensuring that a

greater proportion of its product portfolio is produced with green technologies and uses clean

development mechanisms. Tata Chemicals along with other Tata companies has embarked

upon a climate change policy that includes mapping carbon footprint and creating an

abatement strategy for sustainable manufacturing. The company is using its innovation and

technological expertise to create new green products that address the planet's most pressing

issues, such as the need for developing viable bio fuels, industrial flue gas treatment,

affordable water treatment systems, etc. The company is a signatory with several leading

bodies such as the Global Round Table on Climate Change and the CII Mission for

Sustainable Growth.

Environment and ecology

Tata Chemicals has a robust policy for safety health and environment which it practices with

equal diligence in all its facilities all over the world. Several of its plants have consistently

won leading safety awards. Respect for the local environment and ecology has led the

company to invest considerable resources in conserving local habitats, preserving ground

water sources, developing useful by-products out of waste, etc.

Community links

Tata Chemicals' corporate philosophy goes beyond social responsibility to a passionate

concern for the communities in which it operates.

In 1980, Tata Chemicals set up a non-governmental organisation Tata Chemicals Society

for Rural Development (TCSRD) that works towards holistic community development,

including managing water, land and other natural resources, encouraging enterprise

development, and promoting health and education. TCSRD's activities have been recognised

at a national level. Tata Chemicals Europe (formerly Brunner Mond) is a major sponsor of
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the Lion Salt Works Trust, a local heritage project in Cheshire, UK and of the Weaver Valley

Initiative, part of the path-breaking Mersey River clean up campaign. Tata Chemicals is also

involved in efforts to preserve the biodiversity of land along the Gujarat coastline and the

nesting sites of migratory birds. TCL and Wildlife Trust of India (WTI) have signed an MoU

for a conservation project that will create awareness and undertake research to save theendangered species of whale shark that visits the coastal shores of Gujarat.

IIn Kenya,Tata Chemicals Magadi (TCM) is deeply involved in several areas ofcommunity

welfare and development - health services through the company-suportedMagadi Hospital,

water supply, support for the local schools, adult education, livelihood opportunities, local

infrastructure development, and so on. TCM is part of the Maasai Integrated Development

Partnership Project (MIDPP), an umbrella body bringing together a number of stakeholders -

NGOs, the Kenya government and the local community. MIDPP's main aim is to pool

resources and hasten social development in Magadi division. TCM's corporate social

responsibility programme has won the Kenya Institute of Management's Company of theYear Corporate Citizenship Awards six times over the last ten years. The programme has

been recognised by the International Finance Corporation (IFC) as a model for business and

community partnership.

Local focus

Taking into account the diverse geographical spread and the individual subcultures, different

agricultural, economic and development programmes have been implemented in the Indian

cities of Mithapur, Babrala and Haldia. For instance, in Mithapur, local handicrafts have been

given a boost through a branding exercise through the `Okhai' initiative that markets rural

handicrafts and garments in retail stores and on the internet. In Babrala a programme to foster

the local Karjobi embroidery has also shown significant impact. At Haldia, ponds are an

integral part of the local ecology; TCL has taken up several programmes that foster better

pond management techniques.
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Building links

In UK, Tata Chemicals Europe (formerly Brunner Mond) has built strong links with local

schools and authorities and charities and is involved in programmes to support students,

promote health, encourage community spirit and support local heritage. Employees have

established their own charity, the Brunner Mond Employees Charitable Trust, which provides

support to local causes in the mid-Cheshire area, such as local hospitals, hospices, churches,

schools as well as Cub and Scout groups, junior sports teams and local retirement homes. The

company is a major sponsor of the Lion Salt Works Trust, a local heritage project and of the

Weaver Valley Initiative, part of the Mersey Basin Campaign.

At Lake Magadi, Kenya, the company focused on food and water supplement programmes,

health and education, and skill upgradation.
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BASF is the worlds leading chemical company. With more than 110,000 employees, six

Verbund sites and approximately 380 additional production sites worldwide we serve

customers and partners in almost all countries of the world. In 2012, BASF posted sales of

72.1 billionand income before special items of approximately6.6 billion.

BASF combine economic success, social responsibility and environmental protection.

Through science and innovation we enable our customers in almost all industries to meet the

current and future needs of society. Their products and system solutions contribute to

conserving resources, ensuring healthy food and nutrition and helping to improve quality oflife. They have summed up this contribution in their corporate purpose: They create

chemistry for a sustainable future.

BASF INDIA

BASF has successfully partnered Indias progress for over a century. We have become an

integral part of Indias chemical industry with a diverse portfolio of innovative products and

solutions that matches the current and the future needs of the ever-growing nation.

We continue to offer safe, innovative and future-ready solutions that enable our customers to

be more successful. Our chemicals are enriching lives all across India from morning to night

in cars, electronics, food products, roads, homes and more. With the exception of oil and

gas, all BASF divisions that are operational globally, are operational in India too.

BASF in India manufactures polymers, tanning agents, leather chemicals and auxiliaries, crop

protection chemicals, textile chemicals, dispersions and specialty chemicals, performance

plastics, automotive and coil coatings, construction chemicals, polystyrene and polyurethane

systems. We also market a wide range of intermediates, catalysts and other chemicals for life

sciences, chemical and allied industries in the country.

BASF's regional strategy "grow smartly" has identified India as one of its major growth

markets. In 2012, sales to customers in India crossed the 1.14 billion. BASF in India today

has 9 production sites, 8 sales offices and 2 R&D centers employing over 2,157 employees..

As a part of our commitment to sustainable development, we work to achieve our business

goals and fulfil our commitment to ecology and society as well. On the ecological front,

BASF in India has a robust Environment, Health and Safety (EHS) policy that adhere to

global standards. While on the social front, we focus on upliftment of women, fightingcorruption, nurturing young minds and training future talent.


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REWARD AND RECOGNITION

2011BASF awarded "Social Business Company of the Year"

2010 BASF's Thane Site wins 1st prize for Industrial Safety Performance under the

Large category of companies by the Directorate of Industrial Safety and Health, Thane

Region

Our values

How we act is critical for the successful implementation of our strategy: This is what our

values represent. They guide how we interact with society, our partners and with each other.

Creative: In order to find innovative and sustainable solutions, we have the courage to

pursue bold ideas. We bring together our expertise in many different fields and build

partnerships to develop creative, value-adding solutions. We constantly improve our

products, services and solutions.

Open: We value diversityin people, opinions and experience. That is why we foster dialog

based on honesty, respect and mutual trust. We explore our talents and capabilities

Responsible: We act responsibly as an integral part of society. Thereby, we strictly adhere to

our compliance standards. And in everything we do, we never compromise on safety


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OUR PURPOSE

We create chemistry for a sustainable future. Growth in the chemicals sector will be

particularly dynamic in the emerging economies. We expect that these markets will account

for around 60% of global chemical production by 2020. Innovations based on chemistry will

play a key role in these countries, particularly in three areas:

Resources, environment and

climateDramatically rising energy

demand is one of the worlds

most pressing challenges. Inaddition, access to clean water

and other non-renewableresources is becomingincreasingly important.

Food and nutritionA growing world

population obviously needscorrespondingly morefood. And it will be

necessary to enhancenutrition quality.

Quality of lifePopulation growth andglobalization presentfurther challenges.

Aspirations differ greatlyfrom region to region and

among different socialgroups, but there is a

common ambition: peoplewant to improve their

individual quality of life.


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ENVIRONMENT, HEALTH & SAFETY (EHS)

EHS Objectives

We combine economic success with environmental protection and social responsibility, thus,

contributing to a better future. As a signatory of Responsible Care, BASF is dedicated to the

fundamental tenets of safeguarding peoples health, protecting the environment, reducing risk

and supporting sustainable growth. We believe that our commitment to sustainability

generates value for us and our stakeholders, as well as for future generations.

EHS Activities

We undertake various activities that help us use natural resources more efficiently, minimize

emissions, protect the ecology and ensure the safety of people.

Product Stewardship

For us, product stewardship does not end at our factory gates. We consistently review and

monitor to ensure the safety of our products along the entire value chain from raw materials

suppliers to the production sites of our customers. We adhere and comply with national as

well as international legislations. In support of Indias efforts in product stewardship, BASF

actively participates in the National Chemical Inventory Regulation Committee and helps

educate small and medium scale industries on best practices.

In 2012, BASF presented its Global Product Strategy, in line with the Responsible Care

guidelines, at the Indian Chemical Council workshop. Ensuring strict adherence to relevant

legal and statutory requirements, the Trade Compliance program is now extended to cover

and monitor local regulations, which was earlier confined to global regulations only.

Transportation and Distribution Safety

The TDS team at BASF India launched major initiatives in 2012 with the clear objective to

enhance safety awareness and improve processes in transportation-related operations.

BASF has adopted the European Chemical Industry Councils Safety and Quality Assessment

System for road transportation of bulk and packaged goods. This system evaluates the

quality, safety and environmental performance of logistics service providers.We set targets for our local service providers to ensure that they comply with local as well as

BASF requirements, which are internationally accepted. Parameters such as the type of

vehicle used for transportation and its complete specifications are reviewed. Upon non-

compliance, stringent measures are adopted, including termination of the contract with the

logistics service provider who do not meet the required safety standards. To further upgrade

safety awareness among service providers, a series of workshops and training sessions were

organized in 2012. Training courses were held for drivers of vehicles carrying hazardous

goods in collaboration with Indian Chemical Council and a Behavior Based Safety Workshop

for transport operators with expert faculty from British Safety Services, UK.


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Going forward, the focus is on increasing the number of vehicles to be covered under the

Global Positioning System facility, under which vehicles are monitored around the clock by

the BASF Disaster Control Center for violations related to speed, night driving and other

safety alerts. While earlier restricted to vehicles carrying hazardous goods, this facility is now

being evaluated to cover vehicles carrying packaged goods as well.

Occupational Safety

Under Occupational Safety, we focus on providing a safe working environment in our plants,

laboratories and offices. The overall Lost Time Injury Rate for BASF in India for 2012 is 0.6

(2011: 0.5), which is below BASFs global target.

BASF held several training programs in India on the topics of work permit systems, incident

reporting, usage of personal protective equipment, and hazard identification and risk

assessment. Training was also offered to our customers on safety-related topics. Safety

inspections were conducted at periodic intervals at plants, office locations and construction

sites for improving existing safety standards. For the first time, in 2012, hotel fire safety

cards, consisting of precautionary instructions were distributed among our employees. A

construction safety manual for BASF in India was released in light of growing construction

activities. It includes information on safety measures to be adopted by employees as well as

contractors on site. A respiratory protection guide was published and distributed for users of

respiratory personal protective equipment.

In September 2012, we conducted the BASF Global Safety Week in India to further improve

safety awareness among employees and demonstrate our commitment to safety at the

workplace and outside the office.

Occupational health

Prevention is the essential factor in all our environment, health and safety activities. Meeting

this company guideline, BASF holds routine medical check-ups and health awareness

lectures for employees in India. In addition, new requirements for medical emergency

preparedness and emergency response were introduced across the country in 2012.

Substantial focus was also placed on industrial hygiene. External consultants and regional

experts carried out gap assessments and identified areas to be acted upon in the coming year.

Furthermore, to educate our employees on health conscious management of noise sources,

BASF offered a health promotion campaign for hearing protection at more than 400 sites

worldwide in 2012, including sites in India. This included hearing tests for the early

identification of hearing impairments.

Process safety

BASF carries out an extensive review system for the planning and construction of new

chemical plants to protect employees, site neighbours and the environment. All proposed

investments in India undergo a thorough environment, health and safety review. Over and

above the mandatory requirements introduced internally in 2011, Clean Sheet reviews are

also mandated for existing plants, wherein reviews and audits of existing plants are conducted

on a periodic basis, in line with the most updated local and international safety standards.


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A system to help manage change was also upgraded in order to build up the competencies of

the site coordinators in implementing new or enhanced process safety measures.

A training matrix, comprising training requirements based on job profile, was also introduced

in 2012, to ensure improved safety awareness and process safety. The process will be further

implemented in 2013.

Water supply

In 2012, BASF in India used 704,115 cubic meters of water similar to previous year (2011:

715,672 cubic meters). This number is reported as water supply.

Of the 704,115 cubic meters of water used, 460,698 cubic meters (2011: 433,416 cubic

meters) were used for production. This was an increase from 2011 as water-based dyes

production started in Ankleshwar. The remaining water was principally used for cooling and

was re-circulated to save actual water consumption. In 2012, 21,719,872 cubic meters of

water were used for cooling (2011: 24,025,407 cubic meters), including both actual water

used and re-circulated water.

Emissions of organic substances to water (measured as COD Chemical Oxygen Demand),

amounted to 56 metric tons in 2012 (2011: 49 metric tons). The increase is due to trials

conducted at Mangalore on alternate technologies. The quality of the treated effluent was

well within regulatory limits. Emissions of nitrogen to water were about 0.26 metric tons

(2011: 2 metric tons). The reduction in nitrogen emission to water was due to the

discontinuation of a particular product line in Thane and improved efficiencies at the textile

auxiliaries plant, leading to reduced washing of vessels. The emissions to water of heavy

metals were 0.08 metric tons (2011: 0.1 metric tons).

Waste

In 2012, BASF in India generated 5,809 metric tons of waste (2011: 5,773 metric tons). In

2012, recycled waste recovery was 4,402 metric tons (2011: 4,387 metric tons) while the

recovery rate remained at 76%, the same as the previous year. Data for recycling of waste is

available starting from 2009.

Emergency response and crisis management

BASF in India has a well-rehearsed on-site and off-site emergency incident and crisis

management plan. To augment this global process, we have entered into a worldwide contract

with global emergency response expert, ALERT SGS, in the areas of emergency response,

industrial fire fighting and hazardous material control.

Having strengthened the onsite chemical emergency response, the teams have now

coordinated with various industries and forums to build capacity in India for effective

transport chemical emergency response. With rich global experience and expertise in this

domain, we have initiated an industry-wide drive to enable the chemical industry in India to

establish globally recognized standards, infrastructure and services for safe and secure

transportation. The Indian Chemical Council (ICC), under the Nicer Globe initiative, is

dedicated to establishing standards, fostering cooperation and collaboration within the

industry, enabling emergency response infrastructure and services, and routinely evaluating


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and improving transport safety capabilities to enhance the local communitys relationship

with the chemical industry. BASF actively participates in the efforts of the ICC.

Security and information protection

Information protection, fraud and risk management, and business continuity are an importantpart of corporate security. Ongoing training of employees in information protection at all

manufacturing sites and major office locations of BASF in India continued in 2012.

Employees were given insights into everyday work practices that help protect crucial

company information through interactive sessions. Information protection officers

commenced implementation of minimum requirements at their respective sites.

CORPORATE SOCIAL RESPONSIBILITYOur Philosophy

As a responsible corporate citizen, BASF continues to bring about societal changes. We focuson two projects that are closely linked to our corporate philosophy and important to Indias

progressSadbhavana (Empathy) and Fighting Corruption in Public Life. Every year, BASF

employees and volunteers continue to achieve the annual objectives of these projects.

Activities under Sadbhavana

BASF Kids Lab

BASF Kids Lab is a hands-on experiments program that introduces young

minds to the magic of chemistry. It was introduced in India in 2004 and has

inspired over 40,000 young minds ever since. In 2008, over 15,000 children

performed experiments at BASF Kids Lab aboard the Science Express

(science exhibition on wheels) - a feat that has been featured in the 20th edition

of Limca Book of Records.

In 2010, BASF Kids Lab took the magic of chemistry to two districts o

Mangalore, Karnataka, where more than 2,500 students from Grade VI-VIII in

28 schools learned about the significance of chemistry in everyday life with six


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hands-on experiments.

Fighting Corruption in Public Life

Integrity is a part of our corporate Values Charter. This inspires us to take a firm stand

against the cancer of corruption. Studies indicate that even a marginal drop in corruption can

add 1.5% to India's GDP growth. 'Fighting Corruption in Public Life' is a unique program

under BASF focuses on the giver, who contributes to the act of corruption. Through the

Million Minds project, we encourage the citizens to take a stand against corruption.

Science Express

BASF partnered the unique initiative conceptualized by the Department of Science &

Technology - Government of India, Government of Germany and Max Planck Society, a

non-profit research organization. The Science Express was a high-end Science Exhibition

adapted onto a train, which traveled 15,000 kms through India, halted at 57 locations during a

period of 8 months, with the objective of promoting science amongst the youth of India.

BASF introduced the Fascinating World of Chemistry by bringing aboard BASFs global

program Kids Lab on the Science Express. The Science Express hosted over 2.25 million

visitors across the country and BASF Kids Lab had over 15,000 participants.


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Computer Classes

Community Advisory Panel

BASF reaches out to the communities around its major manufacturing sites through a

Community Advisory Panel (CAP). Comprising of BASF employees and community

representatives like doctors, teachers and social workers, CAP identifies and works on

projects where BASF can make active contribution. Activities are focused around primary

education of the economically challenged, women empowerment, sponsoring education ofgirl child and skill development workshops for spouses of BASF employees.

Water Sanitation & Disability Project in Southern India

BASF is empowering the future generation by fostering

basic computer awareness and an interest in technology

among our employees children. BASF Mangalore

Manufacturing Site has started basic computer classes to

train the children of BASF employees as well as those

from the neighbouring village. 18 children of employees

and 22 children from Ottekayur village have enrolled in

these classes.


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Making life more hygienic

Due to lack of proper sanitation facilities, Amudha and her four daughters at Kandakadu

village, Tamil Nadu, used to walk for an hour just to relieve themselves. Under the UN-

HABITAT / FERAL project, a leach-pit toilet was installed in their home. The local

committee chose Amudhas family as recipients, as they fall in the vulnerable persons

category, which includes women-headed households.

Paralysis to leadershipThulasi proves it is possible

Thulasi grew up in Devanampattinam village of Cuddalore district, suffering from partialparalysis. Her life changed when she was spotted during a survey under the disability project

by Leonard Cheshire Disability (LCD) in partnership with BASF. She received a disability

identity card and supportive devices along with regular physiotherapy. Thulasi then enrolled

for skills training in cell phone repair. Today, the same project that enabled Thulasi to stand

on her feet is now grooming her to lead a self-help group that helps enable physically

challenged individuals like her to avail themselves of their rights and entitlements.


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