BASF: 2023 Corporate Carbon Footprint Report

Sustainability is becoming increasingly central to business strategies, with companies setting bold targets to cut down greenhouse gas emissions, including Scope 3 emissions, which account for indirect emissions across the entire value chain.

BASF, which recently published its annual carbon footprint report, is leading the charge by offering cutting-edge products that help customers meet their sustainability objectives while embedding sustainability into every facet of their research and development.

This approach not only keeps pace with evolving regulations but also tackles global challenges like climate change and resource efficiency.

The company employs sophisticated tools such as the SEEbalance® Socio-Eco-Efficiency Analysis and TripleS (Sustainable Solution Steering) to evaluate and enhance the sustainability of its products and processes.

By 2030, BASF is aiming for over 50% of its sales to stem from Sustainable-Future Solutions, a significant rise from 41.4% in 2023.

A cornerstone of this strategy is BASF's corporate carbon footprint report, which meticulously outlines the company's greenhouse gas (GHG) emissions across its entire value chain, adhering rigorously to the standards set by the Greenhouse Gas Protocol.

Since 2008, BASF has been publishing this report annually, making it a trailblazer in the industrial sector for such openness. The report breaks down emissions into three distinct scopes, offering a comprehensive picture of the environmental impact across various stages and sources within BASF’s operations and supply chain.

Dirk Voeste, who held the role of BASF’s Vice President for Sustainability before moving to Volkswagen, offered a compelling narrative on how sustainability has become deeply embedded within the company's operational framework.

When discussing risk management and transparency, Dirk confidently remarked, “Risk mitigation is in our DNA at BASF."

The shift towards greater transparency has been a significant evolution, with Dirk observing that those initially hesitant to reveal the sustainability challenges BASF faced are now, in his words, “very convinced of the value of being transparent.”

This transformation highlights a growing recognition of transparency not merely as a compliance necessity but as a strategic advantage in tackling sustainability issues head-on.

Voeste also underscored a pivotal strategic shift within BASF: the integration of sustainability into the core of its operations.

Reflecting on this evolution, he pointed out, “One of the first significant steps was moving sustainability from EH&S [environmental health & safety] to the strategic planning department.”

This move was not just symbolic but marked a fundamental change in how sustainability was perceived—no longer a peripheral concern, but a central tenet of BASF’s long-term strategy.

The findings: Scope 1 & 2

Starting with Scope 1 emissions, which represent the direct emissions from BASF's own production sites, including the energy generated for both internal use and external sale. In 2023, BASF reported Scope 1 emissions at 14.345 million metric tons of CO2 equivalents, a noteworthy reduction from 15.434 million metric tons in 2022.

This decrease is a testament to BASF's ongoing efforts to shrink its carbon footprint through enhanced energy efficiency and other proactive measures.

Scope 2 emissions, which account for the indirect emissions from purchased energy, also saw a reduction—from 2.629 million metric tons of CO2 equivalents in 2022 to 2.289 million metric tons in 2023.

These figures reflect BASF's commitment to continuous improvement in managing its environmental impact.

The big one: Scope 3

Scope 3 emissions, perhaps the most complex to measure, encompass all other indirect emissions along the value chain, including those from suppliers, the use of sold products and disposal processes.

BASF reports on 12 of the 15 categories defined by the GHG Protocol for Scope 3 emissions.

In 2023, the most significant contributors to Scope 3 emissions were "Purchased Goods and Services," which accounted for 47.42 million metric tons of CO2 equivalents, and "Disposal," which contributed 24.07 million metric tons.

Notably, BASF has yet to determine the emissions for the "Processing of Sold Products" category, given the intricate and resource-intensive nature of such measurements for a chemicals company.

BASF’s dedication to reducing GHG emissions is evident across all scopes. For Scopes 1 and 2, the company employs both a location-based and a market-based approach, ensuring thorough and transparent reporting.

By differentiating between emissions from energy used internally and that sold externally, BASF provides a nuanced and accurate account of its carbon footprint.

In Scope 3, the company carefully evaluates the significance of each category, focusing its reporting on the most impactful areas. This meticulous approach not only allows BASF to identify key areas for improvement but also to monitor its progress in achieving its sustainability goals.

BASF's 2023 corporate carbon footprint report exemplifies the company's unwavering commitment to sustainability and transparency.

By systematically measuring and reporting emissions across its entire value chain, BASF sets a benchmark for industrial enterprises globally.

This report is more than just a document; it is a powerful tool for assessing BASF's progress in mitigating climate change, reducing its carbon footprint, and contributing to global efforts to curb greenhouse gas emissions.

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