Creating Chemistry for a Sustainable Future

Daniel Loh

Sustainable Brands | Oct 12, 2015

Sustainability will not go away

Risks & opportunities occurs at the same time

Business as driver for sustainability

UN estimates a population increase of up

to 9.6 bn people in 2050

Changing demographics create new challenges

Resources, Environment & Climate

Food & Nutrition Quality of life

Chemistry as enabler

Chemistry-based innovations growth and technology fields

White

Biotechnology

Materials,

Systems &

Nanotechnology

Raw Material

Change

Technology fields

Resources,

Environment

& Climate

Food &

Nutrition

Quality of Life

Global needs Growth fields

...

Batteries for Mobility

Enzymes

Heat Management

Organic Electronics

Functional Crop Care

Plant Biotechnology

E-Power Management

Wind Energy

Lightweight Composites

Water Solutions

Key customer industries

Health & Nutrition

Consumer Goods

Transportation

Energy & Resources

Electronics

Agriculture

Construction

White

Biotechnology

Materials,

Systems &

Nanotechnology

Raw Material

Change

Technology fields

Resources,

Environment

& Climate

Food &

Nutrition

Quality of Life

Global needs Growth fields

...

Batteries for Mobility

Enzymes

Heat Management

Organic Electronics

Functional Crop Care

Plant Biotechnology

E-Power Management

Wind Energy

Lightweight Composites

Water Solutions

Key customer industries

Health & Nutrition

Consumer Goods

Energy & Resources

Electronics

Agriculture

Construction

...

Batteries for Mobility

Enzymes

Heat Management

Organic Electronics

Functional Crop Care

Plant Biotechnology

E-Power Management

Wind Energy

Lightweight Composites

Water Solutions

Transportation

White

Biotechnology

Materials,

Systems &

Nanotechnology

Raw Material

Change

Technology fields

Resources,

Environment

& Climate

Food &

Nutrition

Quality of Life

Global needs Growth fields

...

Batteries for Mobility

Enzymes

Heat Management

Organic Electronics

Functional Crop Care

Plant Biotechnology

E-Power Management

Wind Energy

Lightweight Composites

Water Solutions

Key customer industries

Health & Nutrition

Consumer Goods

Transportation

Energy & Resources

Electronics

Agriculture

Construction

BASF’s Strategic PrinciplesClear focus on Sustainability

7

Our sustainability targetsBalancing the 3 dimensions

More on Sustainable Development at BASF here:https://www.basf.com/en/company/sustainability.html

Responsibility along the entire value-

adding chain

8

Greenhouse gas emissions BASF Group in 2014 mil metric tons CO2 equivalents

55 Suppliers

Purchased products,

services & capital goods

5 Transport

Transport of products,

employees‘ commuting

and business travel

52 Customers

Emissions from the

use of end products

4 Others

22 BASF

Production

(including generation of

steam & electricity)

21 Disposal

Incineration with energy

recovery, landfilling

1,200

680

Positive impact to our customers by

helping them reduce CO2 emissions

* CO2 equivalents = units for measuring the impact of greenhouse gas emissions on the greenhouse effect

Prevention of greenhouse gas emissions through the use of BASF products 2014(in million metric tons of CO2 equivalents*)

9

Using BASF’s products

Emissions avoided:

520 (Attributtable to BASF: 11%*)

Without using

BASF’s products

*Based new ICCA and WBCSD standards

A systematic approach :

Sustainable Solutions Steering

Step 2

Evaluation & categorization

of product sustainability

performance in the market

application

Step 3

Development of action

plans for strategies,

research and development,

and market approach

Step 1

Analysis of sustainability

needs and trends in

the value chain

Third party assurance by PwC based on ISAE 3000

Substantial sustainability contribution

in the value chain

Meets basic sustainability standards

in the market

Specific sustainability issue which is

actively addressed

Significant sustainability concern identified

and action plan in development

23.0%

Our goal: Increasing the sustainability contribution of our solutions

74.1%

2.6%0.3%Status: 2014; % of analyzed products by sales

We categorized all our products into

four categories

Growing mobility

demand

Minimizing

environmental impact

Cost reduction12

INTERNALSeptember 29, 2015

We are aware of the sustainability

needs of the automotive industry …

Fuel additives

Catalysts

Light weight plastics

Integrated coating processes

13

… and meet them with our Accelerators

Dow Jones Sustainability Index

BASF share in DJSI World for fourteenth consecutive year

Carbon Disclosure Leadership Index

BASF has a leading position in reporting on climate protection

FTSE4Good Index

BASF has been represented on the index since 2001

Oekom

BASF received the highest score in the chemicals industry

Recognized for pioneering Sustainability

in the Chemicals Industry

Enhanced construction efficiency

Increases productivity within tight timeframes

Superior off-form finish with reduced spalling & wastage

In the Construction Industry Master Builders: Smart Dynamic Concrete

Time-efficient concrete optimization

Better weed control

Easier and more flexible application

Higher yields and quality of harvest

Reduce cost, labor and energy use

In the Agriculture Industry Clearfield® Production System

Self-Sufficiency of Rice

Connected to Care

Making our neighborhood a better place

Realizing charitable

projects with

colleagues and

external partners

Idea contest

with funding

of best projects

Systematic surface UV-cross linking

Durable coating and long lasting adhesion

Best-in-class dirt pick-up resistance

Ordourless & Low VOC

In Pigments & Dispersion Industry High Technology Dispersion for Specialised Coatings

Sustainability

Get involved!

Sustainable Solution Steering

>60,000solutions assessed

~14,000 Acceleratorsolutions

with about €15,000,000,000 sales in 2014

>60%of R&D budget spent onAccelerator projects in 2014

>1,000action plans in place

>2,000experts involved

e.g. R&D, Product SafetySales & Marketing, Sustainability