Challenges, Responsibility and Opportunities

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Challenges, Responsibility and Opportunities
Johnny Kwan Chairman, BASF Greater China Country
Board
5th
CBCSD Workshop on New Trends of Sustainable
Development April 15, 2009
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The world is facing huge challenges
How can we assume responsibility and use our
opportunities sustainably?
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Chemistry shapes the future with innovation and
sustainability

• Short-term strategy

• Long-term strategy

• Sustained strategy

Sustainableactions
Ongoing questfor innovation
Restructuring and efficiency
Help us to find the answersto global challenges
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Excellence Program
Business Excellence
Operational Excellence
Site optimization project
Functional excellence
Human resources
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Development trends Climate protection

• Case BASF
• Worlds first industrial company with
  comprehensive carbon balance
• BASF products save three times more greenhouse
  gases than the total emitted by the production
  and disposal of all BASF products
• Goal 2020 reduce greenhouse gas emissions by 25
  
• 2008 over 400 million investment in energy
  efficient processes, resource conservation and
  new technologies

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Development trends Energy and resources

• Recyclying economy system links resources
  intelligently and significantly reduces total
  energy consumption across all major sites
• Lonic liquids open up new ways of processing
  renewable raw materials
• Solar cells that are flexible and as thin as
  plastic film in development
• OLEDs offer completely new possibilities for
  lighting systems electricity consumption can
  behalved and lighting costs reduced

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Development trends Housing and construction

• Low-energy homes innovative examples of
  affordable and eco-friendly housing
• Insulating materials help to save heating costs
  and energy
• Phase change materials ensure a pleasant indoor
  climate
• High performance additives enable energy
  efficient construction and stress resistant
  concrete

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Development trends Health and nutrition

• Develop crops for higher yields and greater
  resistance to adverse environmental conditions
• Chemicals improve drinking water quality and help
  to prevent disease
• Vitamins and carotenoids enhance the nutritional
  value and quality of numerous foods
• Mosquito nets with a special polymer containing
  the WHO approved insecticide provides
  long-lasting protection against insects, so as to
  prevent disease transmission to humans

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Development trends Mobility and communication

• Catalysts convert up to 96 of harmful vehicle
  emissions into harmless end products
• Fuel additives protect vehicle engines and ensure
  better air quality
• New membrane systems for fuel cells will enable
  tomorrows cell phones to be recharged
  independent from the grid
• Water-based coatings help to reduce solvent use

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Ensuring sustainable development - our
strategic guideline
Helping our customers to be more successful
Earning a premium on our cost of capital
BASF The Chemical Company
Ensuring Sustainable development
Forming the best Team in industry
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BASF fulfills Corporate Social Responsibility
(CSR)

• Proactively practise CSR
• Mobilise the industry to
• practise CSR
• Promote CSR practices
• along the supply chain

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Commit to Responsible Care
Occupational health and safety
Process safety
Distributionsafety
CA/ER
Product stewardship
Pollution prevention
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Mobilise the industry to practise CSR

• BASF is actively promoting Responsible Care
  through Association of International Chemical
  Manufacturers (AICM) and China Petroleum
  Chemical Industry Association (CPCIA).
• On 29 May 2008, 24 international chemical
  companies including BASF, Dupont, Bayer, Shell,
  Mitsubishi Chemical Corporation and Rohm and Haas
  signed the Responsible Care Beijing Manifesto.

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BASF 13 CSR Project

• BASF initiated the 13 project together with
  CBCSD in 2006 and managed to complete it
  successfully with our six partners.
• BASF is currently preparing for a new round of
  the project.

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RC practices and self-assessment
4 partners 2.9- 4.7
4 partners 1.9- 6.0
4.3 (basic level)
4.1
3 partners 2.0-3.0
5 partners 4.6-6.0
5.0
2.6
4.4
4.5
4 partners3.5 -5.0
5 partners 3.5 5.3
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Partners in action

• RC codes and CSR concept integrated into the
  corporate strategy
• Less use of energy and less emissions by
  improved production processes
• Training seminars on process safety management
  system and CSR practices
• Dialogue with various stakeholders improved
  (e.g. open days for local
• community)
• CSR proposal submitted to the National Peoples
  Congress
• Employees workplaces and companys surroundings
• improved
• Active promotion of CSR and RC standards
  within the own supply chain

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Voices from the media

• China WTO Tribune
• Great Britain China Centre
• TNC-Beijing New Century Academy on Transnational
  Corporations
• UN Global Compact
• ICCA-the International Council of Chemical
  Associations
• More than 100 articles reported in the
  mainstream print/online
• media

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Effect of BASF 13 CSR Project

• Create an innovative CSR business model
• Strengthen long-term strategic business
  partnership
• Promote CSR to further its footprint

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Encourage smallmedium sized enterprises to
practise CSR

• Launch 2007 Golden Bee CSR China Honor Roll
  with WTO Tribune
• 204 enterprises participated
• 60 enterprises shortlisted in 2007
• 2008 Golden Bee CSR
• China Honor Roll will be
• announced soon

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