BASF sustainable development

Figure 1.2 The three pillars of sustainable development. After BASF [3].

Between 2001 and 2005, BASF will have invested EUR two billion in China, but its spectrum of activities is far broader than might first be anticipated. Before retiring as chairman of BASF, Jurgen Strube visited Beijing in October 2002 and told the press there, We are investing in more than just steel and pipes in China. Here, as in other parts of the world, our operations are guided by the principles of sustainable development. ... 

In January 2004, BASF became a founding member of the China Business Council for Sustainable Development and hosted a symposium to encourage direct contact with its stakeholders. This organization brings us together with other like-minded members such as Sinopec, which is now not only our investment partner but also a partner on the journey to promoting sustainable development in China. 

The spectrum of BASF s activities in China ranges beyond economic considerations it is also supporting environmental and social projects, the two other pillars of sustainable development, in the country. 

SUSTAINABLE DEVELOPMENT AN INTEGRAL PART OF BASF S CORPORATE VALUES... 

In the following, the implementation and practical handling of sustainable development within BASF is presented in more detail. Furthermore, an important instrument, the eco-efficiency analysis, is described. BASF was one of the first chemical companies to develop this method for use in its business activities. 

As the world s leading chemical company, it is our mission to benefit our customers, our shareholders, our company, our employees, and the countries in which we operate. BASF s values describe the orientation and the manner in which we want to reach our goals. The first of six values states Ongoing profitable performance in the sense of Sustainable Development is the basic requirement for all our activities. We are committed to the interests of our customers, shareholders and employees and assume a responsibility towards society. ... 

BASF s Board of Executive Directors established the Sustainability Council in June 2001. The Sustainability Council (Fig. 8.21) is chaired by a Board member and ensures that BASF Group policy is in accord with the principle of sustainability. The key task of this Council, whose members include seven division presidents in addition to the Board Member, is to draw up strategies for the three aspects of Sustainable Development the economy, the environment, and society. 

Examples for the Implementation of Sustainable Development within BASF... 

Innovation and Sustainable Development Example Three-Liter-House With innovations based on chemistry, we are helping to put the principles of sustainability into practice. Innovations from BASF make our customers products and systems as well as their entire production processes environmentally sounder, and help save resources. 

For the year 2000, BASF published for the first time a report about Social Responsibility. This completed our traditional Annual Report and the Environment, Safety and Health Report to a comprehensive Sustainable Development reporting. The independent verification of our reports ensures the validity of the information we publish. Following the verification of the Social Responsibility 2001 Report, the Environment, Health and Safety 2002 Report was also verified by the independent accountancy firm Deloitte Touche. 

While the report emphasises BASF s commitment to sustainable develop- Triple bottom line NO... 

For developed countries, environmental focus has shifted from pollution prevention to sustainable development BASF developed a so-called eco-efficiency analysis, as an internal decision making tool, to help in evaluating products and processes for... 

A useful example of sustainable design comes from BASF, and their development of the eco-efficiency tool. This tool seeks to integrate the combined aspects of each of the three pillars in an attempt to quantify the most sustainable products and illustrates some of the concerns associated with evaluating sustainable products. For example, the economic analysis includes a total cost of ownership that goes beyond the purchase price of a product to incorporate the cost of operation, the cost of environmental health and safety, and the cost of labour. Thus, even though a product may have a lower purchase price, it may be more expensive to use and thus costlier over the total life cycle of the product. 

BASF therefore aims to harness the changing business environment and achieve sustainable, profitable growth. However, operating successfully in an emerging and highly dynamic market also requires careful evaluation of the risks that could endanger that success. BASF therefore analyzes several key risk factors in China on a regular basis. The most prominent ones at present are the development of ... 

---