how a breakthrough product portfolio assessment is changing business strategy and yielding new value
TRANSCRIPT
Dirk Voeste | @BASFCorporation Vice President of Sustainability Strategy BASF
How a Breakthrough Product Por1olio Assessment is Changing Business Strategy and Yielding New Value
#SB15London
150 Jahre
Dirk Voeste, Sustainability Strategy Sustainable Brands London | November 18, 2015
How a Breakthrough Product Portfolio Assessment is Changing Business Strategy and Yielding New Value
150 Jahre
We create chemistry for a sustainable future Our sustainability levers
Strategy & organization
Assets & operations
Business & innovation
Stakeholder & commu-nication
Employees & engagement
Our commitments along the value chain
Material aspects
We drive sustainable solutions
Customer BASF Suppliers
We produce safely for people and the environment
We produce efficiently
We source responsibly
We respect people and treat them fairly
We establish goals to address sustainability along the value chain
Customer BASF Suppliers
Evaluation of 70% of relevant suppliers with regard to their sustainability performance by 2020
Energy & climate protection § Greenhouse gas reduction of 40% by 2020 § Energy efficiency: Introduction of certified energy
management system at all major sites
Increase the share of Accelerators to 28% by 2020
Water § Introduction of sustainable water management
at all relevant sites by 2025
Safety, health and security § “Risk assessment” of products by 2020 >99% § Transportation accidents by 2020 -70% § Health Performance Index >0.9 § Lost-time injuries by 2025 -80% § Red. of process safety incidents by 2025 0.5
Employees § Women in leadership positions § Non-German senior executives § Senior executives with int. experience >80%
We screen all assets and investments for relevant sustainability improvements
Sustainability Team
Division + Result
Improved sustainability in investments, financial assets and real estate
Sustainability statement n Evaluates fit with
sustainability strategy & criteria
n Identifies sustainability opportunities or risks
n Suggests improvements
We use a holistic approach to assess investments projects on sustainability
BASF´s economic success
BASF´s social responsibility
BASF´s corporate reputation & brand credibility
BASF´s environmental protection
BASF´s values & principles
„How we act“
Market & value chain?
Competitive technology?
Attractive & responsible sourcing?
Suitable location?
Fit to strategy?
Beneficial use & product stewardship?
Sustainable Solution SteeringTM
“We drive Sustainable Solutions”
1,000+ action plans in place
>60 % of R&D budget spent on projects contributing to sustainability
2,000+ sustainability experts in extended networks
14,000 products contributing substantial to sustainability
with about
>15 bn € sales
60,000+ solutions assessed
150 Jahre
We integrate sustainability in our business strategies
Step 1
Analysis of sustainability needs and trends in the value chains
Step 2
Evaluation and categorization of product sustainability performance in the market application
Step 3
Development of action plans for strategies, R&D, and market approach
150 Jahre
We categorized all our products into four categories
Substantial sustainability contribution in the value chain
Meets basic sustainability standards in the market
Specific sustainability issue which is actively addressed
Significant sustainability concern identified and action plan in development
2014 % of analyzed sales to 3rd parties
TM
150 Jahre
TM
We increase the sustainability contribution of our solutions
〉 60,000 product applications analyzed representing 66.3 bn € in sales (data 2014)
〉 23% ranked as Accelerators: - outgrow their markets - deliver higher margins above average - BASF´s R&D pipeline: >60% Accelerators
〉 74% classified as Performers
〉 <1% ranked as Challenged. Individual action plans (implemented in 2015)
28%
150 years
Sustainability is Business Leverage the potential
Sustainability yields new value
〉 Sustainability drives profitable growth
〉 Increased long-term business success � market differentiation � risk mitigation � innovation
〉 Full integration in investment decisions and portfolio management as major lever