BASF Analysis of Structure and Content of Environmental & Sustainability Reports

BASF
Analysis of Structure and Content of
Environmental & Sustainability Reports
EM&P 03 Feb 2017
Prof. Dr. Magnus Fröhling Adu Ohene Emmanuel (60814)
WS2016 Justin Jackson (60768)
Seonghyeon Kim (60236)

BASF
I. INTRODUCTION
II. DEFINITIONS
III. BASF‘S CORPORATE SUSTAINABILITY GOALS
IV. STRUCTURE AND CONTENT OF MANAGEMENT REPORTS
i. ENERGY AND CLIMATE CHANGE
ii. WATER
iii. AIR AND SOIL
V. LUDWIGSHAFEN EXPLOSION (CASE STUDY)
VI. DISCUSSION
2
Agenda
TU Bergakademie Freiberg | EM&P WS2016 | Adu Ohene Emmanuel (60814) Justin Jackson (60768) Seonghyeon Kim (60236) | 03 02 2017 |

BASF
 Energy and Climate Change
 Strategy
 Global Goals
 Energy Supply and efficiency
 Corporate carbon footprint and climate protection products
 Water
 Strategy
 Global Goals
 Further reduction of emissions
 Water Use
 Air and Soil
 Strategy
 Emissions to Air
 Management of waste and contaminated sites
3
Structure and Content

BASF
 This ensures their long-term sustainability and profitability, as well as
equipping them to respond to regulatory and policy changes, such as
the Paris Agreement.
 Risk minimization
 Company and public image improvement
4
BENEFITS FOR BASF REPORTING

 The world’s largest corporate sustainability initiative with two
objectives.
 Mainstream the ten principles in business activities around
the world.
 Catalyse actions in support of broader UN goals.
 Ten principles.
 Human rights: Principle 1 and 2.
 Labour standards: Principle 3, 4, 5, and 6.
 Environment:
Principle 7: Support precautionary approach to environmental
challenges.
Principle 8: Undertake initiatives to promote environmental
responsibility.
Principle 9: Encourage the development and diffusion of
environmentally friendly technologies.
 Anti-corruption: Principle 10.
5TU Bergakademie Freiberg | EM&P WS2016 | Adu Ohene Emmanuel (60814) Justin Jackson (60768) Seonghyeon Kim (60236) | 03 02 2017 |
UN Global Compact
Image: https://www.unglobalcompact.org/
Source: https://www.unglobalcompact.org/

 CDP is a global disclosure
system for companies, cities,
states and regions to manage
their environmental impacts and
for investors or purchasers to
access environmental
information for use in financial
decisions.
 CDP have built the most
comprehensive collection of
self-reported environmental data
in the world
 Most of their Reporting are
mainly on Climate , water and
forestry.
CDP
Source:https://www.cdp.net/en/info/about-us

 An international independent standards organization helps
businesses, governments, and other organizations understand and
communicate their impacts on issues such as climate change,
human rights, and corruption.
 GRI reporting guideline
 Enable third parties to asses environmental impact from the
activities of the company and its supply chain.
 GRI indicator protocol set
-Performance indicators
-Environmental indicators
Global Reporting Initiative (GRI)
Source: https://www.globalreporting.org

Energy and Climate Protection
 Greenhouse gas reduction.
 Analysis of the greenhouse gas emissions in the past few
years.
 Implementation of comprehensive reduction measures.
 Energy efficiency.
 Highly efficient combined heat and power plants with gas and
steam turbine.
 Reuse heat released by production processes.
 Global climate protection.
 Reporting on greenhouse gas emissions in accordance with
Greenhouse Gas Protocol standard.
 In reporting to CDP, perform an annual analysis of the
opportunities and risks that climate change poses for BASF.
Source: BASF Report 2015
Strategy

 The energy management
system ISO 50001 certification
in 27 production sites worldwide
by 2015.
 Introduction of certified energy
management systems, DIN EN
ISO 50001 by 2020.
 40% of reduction of greenhouse
gas emissions per metric ton of
sales product by 2020.
Global goal

 Gas and steam turbines in
combined heat and power
plants.
 Fulfill around 70% of the
electricity demand of the
BASF group.
 Saving of 13.5 MWh of
fossil fuels, prevention of
2.7 million metric tons of
carbon emissions in
2015.
 Implementation of an integrated
steam network at the
Ludwigshafen site.
 The use of renewable energies.
Energy supply and efficiency

 Corporate carbon footprint –
Climate protection activities
along the value chain.
 Reporting on greenhouse gas
along the entire value chain.
 Avoid of 530 million metric tons
of CO2 via consumers’ use of
climate protection products,
such as fuel additives which
reduce fuel consumption.
Corporate carbon footprint and climate protection products.

Images:
http://www.emeraldfreight.com
https://images.sciencedaily.com
 Regular monitoring of emissions to air
 Emissions from oil and gas operations excluded due to fluctuations
during exploration phase
 Raw Material Verbund helps prevent and reduce waste
 Audits carried out to inspect external waste management
companies
 Ensures hazardous waste is properly disposed
 Preventive soil protection to ”keep today’s waste from becoming
tomorrow’s contamination
Air and Soil
Strategy

Air and Soil
 66.6% reduction of worldwide
absolute emissions of air pollutants
from 2002
 Ozone-depleting substances defined
by the Montreal Protocol were
reduced from 36 (2014) to 23 (2015)
metric tons
 Heavy metals remained unchanged
at 4 metric tons
 Sulfur oxides reduced by over 1,000
metric tons
 Hannibal, Missouri site
change out of coal-fired
boilers to gas-powered
burners
 CO reduced through use of BASF’s
series of CO catalysts
Image: https://s3-eu-west-1.amazonaws.com
Emissions to air

Air and Soil
 Waste prevention is first priority
 Recycling and energy recovery
performed when waste is unavoidable
 Total waste volume declined by 2.4% in
2015
 Contaminated site management and
remediation takes place on a case-by-
case basis
 Documentation of relevant sites
in a database since 2013
Management of waste and contaminated sites
Image: http://myefiko.com

Image: https://global.handelsblatt.com/companies-markets
 October 17th explosion and subsequent
fire occurred at BASF’s chemical plant
in southwest Germany
 4 people died
 8 people critically injured
 Firefighters battled the fire for 10
hours
 20 facilities and 2 steam
crackers shut down
 Explosion likely triggered by contractor
who cut the wrong pipeline
 Benzene in the air (carcinogen)
consistently measured below the
acceptable level of 200 micrograms per
cubic meter
 No significant health risk to local
residents
 Ongoing investigation…
Source: Deutsche Welle (DW) Online – 21.10.2016
Ludwigshafen Explosion

Image: http://www.shanghaidaily.com
 Explosion exposes the weaknesses and unwieldly nature of the
Verbund strategy employed by BASF for the past 153 years
 “the intelligent interlinking of production plants, energy
flows, and infrastructure”
 Each plant is connected to another by pipelines with the
steam crackers suppling the whole works
 Crude oil broken into propylene and ethylene
 Without chemicals for the steam crackers, 20 facilities
needed to be switched off
 Competitors focus on producing specific chemicals and
prominent changes are occurring
 Sinochem & Chemchina merger
 Dow Chemical & DuPont merger
 Bayer takeover / Monsanto deal
 Saudi Aramco IPO
 Economic sustainability?
 Tradition vs. future challenges
Source: Handelsblatt Global Online – Goebel & Salz – 10.01.2017
Ludwigshafen Analysis
Image: http://images.bidnessetc.com
Image: https://2012patriot.files.wordpress.com

References
17
Title Page
http://photos.prnewswire.com/prnvar/20140221/MM69780LOGO
http://www.swr.de/-
/id=18327612/property=full/ao2j13/Luftaufnahme%20vom%20Brand%20bei%20BASF%20in%20Ludwi
gshafen.jpg
https://www.dispersions-pigments.basf.com/portal/streamer?fid=821435
https://www.basf.com/images/corp/career/job-
families/other/csr_1510_Steam_cracker_at_BASF_Ludwigshafen.jpg-renditions/cq5dam.web.16-
9.8.jpg
BASF
https://www.globalreporting.org
https://www.unglobalcompact.org/

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