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Topics on this page: First industrial company to present a carbon balance • Gold Class Member in top sustainability index • Pioneering role in reporting • Energy-efficient window frame profiles • Eco-efficient binder for cork flooring • Investing in new technologies • Pilot projects for sustainable buildings in the UK and USA • Awards for BASF in Indonesia and Thailand • BASF catalysts for Hong Kong's buses • Food safety initiative • New partnerships for sustainable production of fruits and vegetables

July 2008

First industrial company to present a carbon balance

Photo: Mr Voscherau presents the Carbon balance

In mid February, BASF was the world's first industrial company to present a comprehensive carbon balance for its operations. The results show that BASF products can save three times more greenhouse gas emissions than the entire amount caused by the production of all the company's products. The Öko-Institut in Freiburg (Germany) has reviewed and confirmed BASF's calculations. The carbon balance also takes into account emissions from precursors as well as disposal. BASF has set itself ambitious goals for the future: by 2020, the company aims to reduce greenhouse gas emissions from its production processes by 25 percent compared with 2002 and improve the specific energy efficiency of these processes.

The company wants to continue offering customers new, innovative products and solutions. To emphasize the strategic importance of climate protection, Dr. Ulrich von Deessen has been appointed Climate Protection Officer. As a member of BASF's Sustainability Council, he will be coordinating all the company's activities in this area worldwide. "Climate protection is one of the main challenges faced by society" said von Deessen. BASF spends around €400 million, or one-third of its total research and development budget, on innovative technologies in the areas of energy efficiency, climate protection, resource conservation and renewable raw materials.

Further information

Gold Class Member in top sustainability index

The rating agency SAM (Sustainable Asset Management AG) assesses annually the sustainability performance of companies to decide on the inclusion of companies in the Dow Jones Sustainability Index - the world’s foremost sustainability index. Currently, BASF is listed for the seventh year in succession. In 2008, the rated companies were divided for the first time into three categories: SAM Gold, Silver and Bronze Class. Because of its outstanding performance, BASF was awarded the status of Gold Class Member. This ranking is only given when the difference compared to the leading company in a sector is less than 5 percent.

Pioneering role in reporting

For the first time BASF has published financial and sustainability information in a single report. By integrating data related to the environment and social responsibility in its financial reporting, BASF is again playing a pioneering role. Because sustainability aspects are increasingly of relevance for financial reporting, the Report 2007 equally meets the expectations of financial analysts, sustainability experts and journalists.The Global Reporting Initiative (GRI), an organization that develops global guidelines to ensure transparent sustainability reporting, has already confirmed that the new report meets its highest application level, A+.

Further information

Energy-efficient window frame profiles

Photo: New (left) and usual (right) window frame profiles in comparison

BASF together with window system manufacturer aluplast has developed a product innovation for the market: energy-efficient window frame profiles with thermoplastic reinforcements. BASF has developed a version of the plastic Ultradur^® High Speed (PBT) specially for aluplast. The plastic replaces the steel that is normally used for window frame profiles. Thanks to this plastic, aluplast was able to develop a window system that is both highly thermally insulating as well as cost effective. The thermal insulating quality was improved by 20 percent by Ultradur^®. The window frame profiles weigh 60 percent less than their predecessors, which makes transport and installation easier as well. Over the long term, aluplast intends to switch over all profile systems to Ultradur^®.

Further information

Eco-efficient binder for cork flooring

Photo: Girl sits on the ground and reads

Low raw material and energy consumption, low CO2 emissions with comparable life cycle costs - just a few of the advantages offered by cork flooring with BASF's new binder Acrodur^®. An Eco-Efficiency Analysis carried out by BASF together with Amorim, the world's largest manufacturer of cork products, showed cork flooring with Acrodur^® to be more eco-efficient than all other compared floorings. The manufacture and use of the natural product cork generates only low emissions of CO2 and other greenhouse gases; energy and raw material consumption is relatively low. Cork has outstanding insulating properties and not only helps reduce energy consumption and carbon emissions, but also cuts heating costs. Acrodur^®, the new binder from BASF, is a water-based acrylic binder distinguished particularly by low odor and emissions impact. Following the positive results of the Eco-Efficiency Analysis, Amorim has immediately started using Acrodur^® in its globally marketed brands WICANDERS^®, ipocork^® and CORKLIFE^®.

Further information

Investing in new technologies

BASF Venture Capital GmbH has invested in the venture capital Fintech GIMV Fund L.P. (FGF), which focuses on Japan-based hightech startup companies. The main areas involved are life sciences, alternative energy generation and storage, material sciences, and information and communications technology. FGF has raised €38 million in its first closing, with BASF contributing €1.4 million. The investment increases BASF's access to innovative technologies in Japan and provides further intensive support for BASF's five growth clusters: Energy Management, Raw Material Change, Nanotechnology, Plant Biotechnology and White (Industrial) Biotechnology.

Further information

Pilot projects for sustainable buildings in the UK and USA

Photo: BASF House, a low-energy construction project in Nottingham

At the end of January, BASF's UK showhouse was opened. The low-energy house is part of the project "Creative Energy Homes", a cooperation between BASF and the University of Nottingham. The aim of the project is not only to save energy and improve insulation, but also to use renewable energies while constructing an affordable house. The house was built using, amongst others, state-of-the-art materials from BASF like Neopor^®, Elastopor^® and Micronal PCM^® that guarantee energy-efficient insulation. Heat is produced from renewable energy sources and solar cells have been installed on the roof.

A similar project has been supported by BASF in the US. The project is headed by Cherokee, the leading investor in the sustainable redevelopment of brownfields. Cherokee together with BASF created a sustainable Green HomeTM that will serve as an idea laboratory for thousands of homes on remediated Cherokee properties. BASF provided technical support as well as energy-efficient and sustainable materials. These materials helped the project receive a Platinum certification under the U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design for Homes program (LEED for Homes).

Further information UK

Further information USA

Awards for BASF in Indonesia and Thailand

Photo: Henry Choo, chairperson of BASF Indonesia, accepts the award

The National Committee Responsible Care^® Indonesia (RCI) named BASF Indonesia winner of the Platinum Circular and Golden awards. The committee of the competition analyzed the implementation of Responsible Care^® practices at work in chemical companies. BASF was recognized for excellent Responsible Care^® management practices. Mr. Henry Choo, President Director of BASF Indonesia who received the awards said: "The awards reflect BASF's active commitment to the chemical industry’s worldwide Responsible Care^® initiatives.

Photo: Thailand BASF receives the award "code of Conduct Excellence"

Some weeks before, BASF Thailand received another award. In recognition of its high standard of corporate governance, BASF was awarded the "Code of Conduct Excellence" by the Thai Chamber of Commerce.

Further information Indonesia

Further information Thailand

BASF catalysts for Hong Kong's buses

Hong Kong bus operators have awarded a contract to BASF Catalysts. BASF is supplying diesel particulate filters for over 2500 Hong Kong transit buses as part of a diesel retrofit program. After extensive field trials the bus operators finally chose the DPX™ Max filter from BASF, which can cut emissions of particulate matter, or soot, by more than 85 percent. Hong Kong was taking a lead from the success of emissions control in Peking; in 2007, the Chinese metropolis fitted many of its buses with BASF catalysts. The initiative was a response to the growing number of vehicles in Hong Kong, where diesel vehicles are the main cause of street-level air pollution. The government has therefore launched various initiatives to reduce emissions including a diesel retrofit program. BASF's DPX™ technology has earned the first US Environmental Protection Agency Urban Bus Retrofit certificate.

Further information

Food safety initiative

Especially where food is concerned, today's consumers want to know exactly what they are buying and how it is produced. The requirements to be complied with by feed and food manufacturers are correspondingly high in terms of safety, quality, traceability and environmentally benign manufacture of individual products. The BASF Nutrition Ingredients business unit has now developed a method that makes all these aspects transparent for the customer.

BASF has launched an S.E.T. (Sustainability, Eco-Efficiency and Traceability) initiative that helps manufacturers to trace exactly which ingredients were used and which conditions applied in the manufacture of a product. S.E.T. is based on the Eco-Efficiency Analysis which analyzes the entire life cycle of a product. "In S.E.T., we apply this principle to our food ingredients and feed additives, making sustainability tangible," said Dr. Christoph Günther who is responsible for this initiative. The data are accessible to all customers anywhere in the world via GTN^® (Global Treaceability Network), a global platform used in the food industry for targeted sharing of product information material.

Further information

www.set-initiative.com

New partnerships for sustainable production of fruits and vegetables

Under the motto "Living Food Quality Together", the BASF business unit Crop Protection is expanding partnerships and joint projects within the fruit and vegetable value chains. Together with the service provider Peter Vetter, the independent analysis institute U.I.S. and the WWF, BASF is a partner in the "Best Alliance" project for sustainable contract farming initiated by the REWE Group. The partnership for the production of premium quality strawberries started in 2006 as a pilot project in the Huelva region in Spain and has since then been considerably expanded. BASF together with REWE has selected strawberry producers who grow their strawberries exclusively in a controlled system meeting the principles of "good agricultural practice". The participants and growing areas were selected according to strict criteria placing particular emphasis on sustainable production. BASF follows the strawberry cultivation throughout the entire season and advises the producers regarding optimal crop protection strategies.

Photo: Two men in a field full of strawberries

These activities are highly adapted to local conditions and requirements. During the season, U.I.S. Ibérica, an independent testing institute, subjects the fruits to strict controls. This innovative cooperation between partners from the entire value chain allows fruit and vegetable production that meets the higher expectations of today's consumers. BASF Crop Protection sees this initiative as a successful and important model for the future and is evaluating a further expansion based on this pilot project.

Further information

Contact:

Tanja Castor
BASF SE
Sustainability Center

Phone: +49 621 60-97322

Fax: +49 621 60-95873

Email: tanja.castor@basf.com

Internet: http://www.basf.de/sustainability

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