BASF’s answers to the CDP Questionnaire Climate Change 2021
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A recognized leader in ESG
BASF shares are particularly attractive for investors looking for businesses with strong performance regarding the environment, society and governance (ESG). In the analyses of leading ESG rating agencies, BASF is often recognized as benchmark within the chemical industry. They specifically highlight our integrated sustainability reporting, business ethics and the development of sustainable products.
Current ratings
We actively participate in a wide array of ESG ratings. Below is an overview of our current ratings, underlining our position as a leader in sustainability.
Ranking |
BASF rating |
Last update |
CDP
|
A- (Leader) A- (Leader) A- (Leader) |
December 7, 2021 |
FTSE4Good |
Included in the FTSE4Good Index Series | June 22, 2021 |
ISS ESG |
Prime Status | May 25, 2021 |
MSCI ESG |
A | April 21, 2021 |
Sustainalytics ESG Risk |
25.8 points (among top 10% in diversified chemicals) | May 21, 2021 |
Vigeo Eiris |
59 points | November 24, 2021 |
The non-profit organization CDP has again ranked BASF as one of the world's leading companies for its measures and transparent reporting on water and forest management as well as climate protection. BASF achieved an A- rating in all three categories, meeting more stringent requirements for climate leadership.
In the "CDP Water Security" list, BASF achieved the rating "A-" (2020: A). CDP assesses how transparently companies report on their water management activities and how they reduce risks such as water scarcity. The assessment also takes into account the extent to which product developments can also contribute to sustainable water management at the customers of the companies assessed. BASF is introducing sustainable water management at all relevant production sites by 2030. This includes the large Verbund sites and sites in water stress areas.
BASF was evaluated by CDP for the second time for its efforts in forest protection and received an "A-" grade here, as in the previous year. BASF provided the organization with detailed insights into its palm and palm kernel oil value chain and the impact of BASF's activities on ecosystems and habitats. BASF recognizes the importance of protecting forests for the well-being of the environment and society. As a player in various value chains, BASF is committed to ending deforestation in these supply chains. Since 2016, BASF has regularly reported on progress and cooperation along the value chain in its Palm Progress Report.
BASF also once again achieved an "A-" rating on CDP's climate list. BASF has been participating in CDP's reporting on climate protection-relevant data since 2004 and thus informs relevant stakeholders transparently about its climate protection strategy and CO2 reduction measures.
Please find the BASF responses to CDP below.
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BASF has been listed in FTSE4Good Index Series since its launch in 2001
BASF is also again listed in the FTSE4Good Index Series. Only companies that meet stringent criteria in social, environmental and corporate governance (ESG) and manage to continuously confirm or develop these in regularly conducted assessments are listed in these indices. BASF is top class in terms of ESG among chemical companies belonging to the index.
ISS ESG has rated BASF again in the category Prime. Prime Status is awarded to leaders in the respective industry that succeeded in the rating process according to industry-specific criteria in terms of social and environmental compatibility. Among other things, BASF received special recognition for having addressed material sustainability topics such as business ethics, environmental management system and energy efficiency with a comprehensive set of measures and processes.
In the 2021 MSCI ESG ratings, BASF scored an “A.” The analysts highlighted that BASF is present in clean tech markets and has a robust carbon mitigation strategy. In addition, governance risks were perceived as relatively low.
BASF ranks among the top 10% of performers in diversified chemicals. The raters positively highlighted that sustainability targets are reflected in board compensation, underlining an overall strong management of ESG issues.
In the rating by Vigeo Eiris, the ESG rating unit of Moody’s, BASF received a total score of 59 (average chemical sector: 49). Vigeo Eiris awarded high scores to BASF, amongst others, in the areas product safety, social and environmental standards in the supply chain and environmental strategy. The raters saw potential for improvement, for example, in the areas of atmospheric emissions and the impact of its products and services.
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