n  2023 greenhouse gas emissions reduced by 10.7% compared with 2022 despite production volume increase

n  Reinforced development in Greater China with continuous investment in production and R&D capabilities

Shanghai, China – June 5, 2024 – Today, BASF publishes its integrated Greater China Report for the 16^th consecutive year to review its performances across the three dimensions of sustainability – economy, environment, and society – in Greater China in 2023.

“The BASF Greater China team showed remarkable resilience and dedication, maintaining safety performance, timely deliveries, and business continuity at all times. For the full year 2023, we posted sales of approximately €9.4 billion to our customers in Greater China”, said Dr. Jeffrey Lou, President and Chairman of BASF Greater China. “We are also looking beyond the present by expanding our local production footprint, strengthening R&D capabilities, and spearheading sustainability efforts in China.”

Continuous strong investments in production and innovation

China is the largest chemical market in the world. In 2023, BASF continued to expand its local production footprint and Research & Development (R&D) capabilities to better support its local customers in the fast-growing Chinese market.

In 2023, BASF, together with its partner Sinopec, inaugurated the expanded downstream chemical plants at the Nanjing Verbund site. The expansion will increase the production of high-quality chemical intermediates. BASF also modified or expanded several production sites nationwide, especially in the Surface Technologies, Nutrition & Care, and Materials segments, to better serve the evolving needs of its customers in China.

The new Verbund site in Zhanjiang will further accelerate BASF’s profitable growth in the Asia Pacific region. Following the startup of the engineering plastics plant in 2022, the second plant producing thermoplastic polyurethane announced its inauguration in January 2024. The site is now focusing on building the core of the Verbund and is expected to start up by the end of 2025.

In order to further enhance its innovation capabilities in China and the Asia Pacific region, BASF inaugurated the expansion of its Innovation Campus Shanghai, the company’s largest R&D center in Asia Pacific. BASF has invested a total of around €280 million since 2012 to its Innovation Campus Shanghai. The expansion includes new facilities and laboratories that are used to advance chemical research projects and create new sustainable solutions.

In 2023, BASF further enhanced its collaborations with prestigious universities and research institutes through the “Network for Asian Open Research (NAO)”. It also signed a strategic partnership with South China University of Technology as well as established “BASF-IOPLY joint research center for e-mobility and energy storage” with Yangtze River Delta Physics Research Center (IOPLY).

Green transformation towards climate neutrality

In 2023, emissions of greenhouse gases from BASF’s chemical operations in Greater China were reduced by 10.7% compared with the previous year, totaling 0.968 million metric tons (2022: 1.084 million metric tons).

The reduction of greenhouse gas emissions was achieved by optimizing efficiency through digitalization and new technologies, as well as by increasing the share of renewables in the energy supply. In 2023, BASF and Mingyang agreed to jointly construct and operate an offshore wind farm in South China and therefore formed a joint venture named Mingyang BASF New Energy (Zhanjiang) Co., Ltd. Subject to construction approval from the relevant authorities, the wind farm is expected to be fully operational in 2025 and the majority of the power generated will be used to supply renewable electricity to the BASF Zhanjiang Verbund site. Meanwhile, BASF is purchasing green power on the market through long-term supply agreements with plant operators, power purchase agreements or renewable energy certificates, to ensure the continuous supply of renewable energy for its various sites across the country.

Promoting societal engagement and science education

Through its diversified societal engagement programs, BASF aims to improve the quality of life in the local communities and create learning opportunities for people to cultivate a sustainable mindset. The company spent more than €0.34 million on societal engagement programs in Greater in China in 2023.

In 2023, BASF Kids' Lab program engaged over 3,500 children from seven cities across Greater China, including its debut in Zhanjiang. Through hands-on experiments focusing on ecofriendly printing and climate change, the program successfully sparked kids’ interest in chemistry, fostering curiosity, and promoting a sustainable lifestyle.

Collaborating with local NGOs, BASF launched its nationwide employee volunteering cleanup campaign in Greater China in 2023. Nearly 600 BASF employees and their family members from 11 cities nationwide cleaned up over 1,300 kilograms of waste, contributing to cleaner coastlines and riverbanks.

BASF also actively engaged with the local community in Zhanjiang to raise awareness of environmental protection by partnering with local NGOs, contributing to the sustainable development of Zhanjiang as a member of the local community.

BASF is one of the first multinational companies to publish a comprehensive local annual report, starting in 2008, to enhance transparent communication and engagement with various stakeholders.