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Taking the next step
in climate protection
– from targets to delivery
Dr. Martin Brudermüller
Chairman of the Board of Executive Directors
BASF Investor Update, March 28, 2022
BASF Investor Update I March 28, 2022
1
Cautionary note regarding
forward-looking statements
This presentation contains forward-looking statements. These statements are based on current
estimates and projections of the Board of Executive Directors and currently available information.
Forward-looking statements are not guarantees of the future developments and results outlined
therein. These are dependent on a number of factors; they involve various risks and uncertainties; and
they are based on assumptions that may not prove to be accurate. Such risk factors include those
discussed in Opportunities and Risks on pages 151 to 160 of the BASF Report 2021. BASF does not
assume any obligation to update the forward-looking statements contained in this presentation above
and beyond the legal requirements.
BASF Investor Update I March 28, 2022
2 BASF Investor Update I March 28, 2022
2
We have ambitious CO2 reduction targets
2030
25%
CO2 emissions
reduction
(compared with 2018)1
2050
net zero
CO2 emissions1
1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO2 reduction
BASF Investor Update I March 28, 2022
3
Products
with
reduced
PCF
Our two perspectives on emission reductions
Scope 2
BASF Group targets
Product carbon
footprint (PCF)
Reduction
measures at
site level
kg CO2e
per kg
Scope 1
Scope 2 Scope 1
Scope 31
CO2
1 Scope 3 emissions from raw materials production by suppliers
BASF Investor Update I March 28, 2022
4
Next step: First net-zero and low-PCF products available
BASF Investor Update I March 28, 2022
4 1 CO2e emissions (cradle-to-gate), calculated using a McKinsey methodology for analysis
~500g
CO2e
0g
CO2e
A 5% to 15% price
increase for net-zero
consumer products…
…will cover the 25% to
50% higher production
costs for chemicals1
BASF Investor Update I March 28, 2022
5
Agenda
1. On the road to reaching our
CO2 reduction targets
2. Global reduction efforts,
individual site approaches
3. Profitable growth with net-zero
and low-PCF products
BASF Investor Update I March 28, 2022
5
BASF Investor Update I March 28, 2022
6
No downstream decarbonization without upstream decarbonization
Global GHG emissions
Scope 1+2
Electric power Steam Upstream Downstream
22
9
6
5 2
Grey-to-green
Continuous opex2
New technologies
Power-to-steam
1 Includes emissions from process energy 2 Operational excellence measures
Bio-based feedstocks
BASF greenhouse gas emissions 2018
Million metric tons per year
Energy production
11
Chemical production1
11
BASF Investor Update I March 28, 2022
7
Our path to reduce BASF emissions from 2018 to 2030
50%
25%
Business
as is 2018
Growth
(organic,
inorganic)
Verbund site
South China
Grey-to-
green Power-
to-steam
Temporary
measures
CO2 increase from growth
CO2 reduction in business as is 2018
Opex
New
technologies
Bio-based
feedstocks
BASF greenhouse gas emissions (Scope 1 and Scope 2) 2018–2030
Million metric tons
BASF Investor Update I March 28, 2022
8
We have defined a corridor for reducing our emissions until 2030
Baseline 2018
21.9
Target 2030
16.4
Projected BASF greenhouse gas emissions
Million metric tons CO2 equivalents
15
17
19
21
23
25
27
29
31
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Projected emissions
without mitigation 2018
CO2e Trajectory
BASF Carbon Management
BASF Investor Update I March 28, 2022
9 Credit: Flying Focus BV
Construction of offshore wind farm
Hollandse Kust Zuid on track
BASF Investor Update I March 28, 2022
9
BASF Investor Update I March 28, 2022
10
0
25
50
2021 2025 2030 2035 2040
Switching our power to renewable energy will be
the main driver of emission reduction until 2025
 BASF strives for 100% of power demand
2021 to be green by 2030
 BASF power consumption expected to
increase strongly due to electrification
on our journey to net zero
 BASF pursues a make-and-buy strategy
to secure access to renewable power
 Early investments in renewable power
assets expected to offer advantageous
economics in the future
BASF global power demand and renewable supply projection
Terawatt hours
of demand
covered with
renewables
16%
2021
x2-3
2040
power
demand
of demand
covered with
renewables
>60%
2030
projection
Grey energy Green energy Additional need for green energy for electrification, depending on availability
BASF Investor Update I March 28, 2022
11
We are delivering with a pipeline of projects to secure
supply of renewable energy at competitive prices
 Contracted projects in Europe:
− Long-term PPAs signed with ENGIE
and Ørsted
− Investment in largest offshore wind farm;
joint ownership with Vattenfall
 Pipeline includes project idea for a wind
farm together with RWE
 BASF Renewable Energy GmbH to focus
on supplying BASF Group companies
in Europe with renewable energy
0
5
15
10
2021 2022 2023 2024 2025 2026 2030
Make
Buy
BASF power demand and renewable supply projection in Europe
Terawatt hours
Grey energy Green energy Additional need for green energy for electrification, depending on availability
Buy
BASF Investor Update I March 28, 2022
12
High potential from changing to power-to-steam
allows decoupling from electricity supply
Current situation
Gas-fired
power plants
Gas-fired
steam boilers
Fossil-based steam generation
CO2
CO2
Future situation
E-boilers Heat pumps E-drives
Electrification of steam generation
and reduction of steam consumption
BASF Investor Update I March 28, 2022
13
South
Central
North
Overview of projected heat pumps at Ludwigshafen site Comprehensive set of technologies
Heat pump (hub)
Off-heat
Grid connection
Power plant
Future steam supply concept for Ludwigshafen: Heat pumps
to replace fossil-generated steam from today’s power plants
Potential to replace up to 1,100 tons per hour of fossil-generated steam
Incineration of
by-products
Gas boiler technology
High-pressure
steam
Cogen or gas boiler technology
Heat pump technology
Medium-pressure
steam
E-boiler technology
Heat pump technology
Freeing up steam for
use in central grid by
replacing steam drives
E-drives
BASF Investor Update I March 28, 2022
14
First high-temperature heat pump to supply
steam to the BASF Verbund in Ludwigshafen
 Integration of a high-temperature heat pump
into the BASF Verbund implemented on
commercial scale
 Use of waste heat and changes to operation of
the steam network will avoid 160,000 tons of
CO2 emissions per year
 Annual cooling water consumption reduced
by more than 20 million cubic meters
 Engineering design with Siemens Energy is
progressing as planned
 Startup targeted for Q2 2024
50 MW
50 MW
Steam
20 MW
Waste heat Renewable energy
80°C
6 bar abs., 200°C
BASF Investor Update I March 28, 2022
15
Preparations for the world’s first electrically heated
steam cracker furnace on track
 Goal is to scale up electrically heated steam
cracker furnace concepts in cooperation with
Linde and SABIC
 Application for funding submitted to
Federal Ministry for the Environment, Nature
Conservation, Nuclear Safety and Consumer
Protection
 Startup of the pilot plant planned for 2023
subject to positive public funding decision
Conventional
furnace
eFurnace
CO2
Raw
olefins
Naphtha
850°C
Furnace
Natural gas
Renewable
energy
Naphtha
Raw
olefins
850°C
eFurnace
BASF Investor Update I March 28, 2022
16
Operational excellence – a lever to continuously increase
our energy efficiency and avoid CO2 emissions
Reduction of CO2 emissions through operational
excellence measures
Kilo tons per year, cumulative  Opex measures helped to reduce CO2 emissions
by ~1 million tons from 2013 to 2021
 In 2021, ~400 opex measures were realized that
reduced CO2 emissions
 Examples:
− Plant for plastics production repurposed
off-heat to generate steam for other plants,
equaling ~5,000 tons lower CO2 emissions
annually
− Further optimized process control in nitric acid
cluster avoids 145,000 tons of CO2
equivalents per year
 New process to foster opex projects linked to
CO2 emission reductions
0
200
400
600
800
1000
1200
1400
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
1
1 Forecast
BASF Investor Update I March 28, 2022
17
Agenda
1. On the road to reaching our
CO2 reduction targets
2. Global reduction efforts,
individual site approaches
3. Profitable growth with net-zero
and low-PCF products
BASF Investor Update I March 28, 2022
17
BASF Investor Update I March 28, 2022
18 BASF Investor Update I March 28, 2022
18
Antwerp is BASF’s second largest Verbund site worldwide
BASF Investor Update I March 28, 2022
19
Antwerp Verbund site with the aspiration to be the first
petrochemical site to approach net zero in 2030
Power-
to-steam
Projected CO2 emissions of BASF at Antwerp Verbund site1
Million metric tons
CCS
(phase 1)
Grey-to-
green
New
technologies
incl. CCS
(phase 2)
Remaining
emissions
1 Emissions from joint ventures are considered according to share of ownership
based on normal plant utilization and including published extension projects.
BASF Investor Update I March 28, 2022
20
Verbund site Antwerp: CCS is a mature drop-in solution
for large-scale process emission abatement
 Project consortium Antwerp@C has entered the
FEED phase for CO2 infrastructure in the port of
Antwerp; BASF is one of the founding members
 Project Kairos@C – a consortium of BASF and
Air Liquide – has entered the project engineering
phase at BASF’s Antwerp Verbund site
 International cross-border CCS value chain
aiming to reduce BASF’s CO2 emissions in
Antwerp by 1 million tons per year in a first step
 Planned to be operational by 2025
Full cross-border CCS value chain
Emitters
Local
transport
CO2 capture
Gathering
pipeline
Offshore
CO2 storage
International
transport
Scope Antwerp@C
via ship
CO2
terminal
via pipeline
BASF Investor Update I March 28, 2022
21 BASF Investor Update I March 28, 2022
21
Zhanjiang to become BASF’s third largest Verbund site worldwide
BASF Investor Update I March 28, 2022
22
1.8
Phase 1
full start-up
Coal-powered
petrochemical site
of similar scope
Gas-powered
petrochemical
site
2050
net zero
Renewable
energy
Syngas
incl. CO2
recycling
Cracker
eDrive
Power
supply
4.2
6–9
Cracker
Verbund
integration
Verbund site Zhanjiang uses latest technologies to reduce CO2
footprint compared with standard gas-powered petrochemical site
Projected CO2 emissions of BASF at Verbund site in South China
Million metric tons
Accelerated supply
of 100% renewable
electricity targeted
BASF Investor Update I March 28, 2022
23
Schwarzheide site is a prototype for the energy transformation
at mid-sized sites
Area of solar farm Schwarzheide
 24-megawatt solar farm under construction in joint venture
with EnviaM; startup planned for Q2 2022
− Energy to be used for production of cathode active battery
materials with best-in-class CO2 footprint
− Long-term energy supply at attractive prices
 Installation of stationary battery in solar farm planned to
buffer fluctuations in renewable energy supply
 Modernization of gas and steam turbine power plant in 2022
for more flexibility in integrating renewable energy
− 10% more electricity with 16% lower CO2 emissions
BASF Investor Update I March 28, 2022
24
15
17
19
21
23
25
27
29
31
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Our roadmap is backed by robust calculations and solid planning
Projected BASF greenhouse gas emissions
Million metric tons CO2 equivalents
Projected emissions
without mitigation 2018
Technology-based CO2
abatement projects
Grey-to-green
(including RECs)
Opex
Lower CO2 emissions
already materialized
until 2020
11 million tons of CO2
avoided annually by 2030
Baseline 2018
21.9
Target 2030
16.4
BASF Investor Update I March 28, 2022
25
Structured approach to capex spending
1 Depending on public funding
Current project pipeline and projected capex
Operational excellence
2021 2030
2025 €2-3 billion
< €1 billion
Pilot scale
Engineering and
construction1 Operation
Engineering and
construction1 Pilot furnace First commercial furnace
Trial reactor Pilot engineering and construction Pilot operation Global roll-out
Global roll-out
 eFurnace
 Water electrolysis
 Methane pyrolysis
 CCS
 Heat pumps
 E-boilers & e-drives
Commercial scale
Implementation and operation
Implementation and operation
Implementation and operation
BASF Investor Update I March 28, 2022
26
Agenda
1. On the road to reaching our
CO2 reduction targets
2. Global reduction efforts,
individual site approaches
3. Profitable growth with net-zero
and low-PCF products
BASF Investor Update I March 28, 2022
26
BASF Investor Update I March 28, 2022
27
Consumers will drive demand for net-zero and low-PCF products
0g
CO2e1
Transformation enabled by BASF
 Chemical raw materials are key contributors to PCFs of
consumer products – in the case of shampoo, more than 90%
 BASF is able to offer its customers net-zero and low-PCF
chemicals by applying a toolbox of emission reduction
measures – from raw material choice to green energy
 End consumers are expected to drive demand
for net-zero and low-PCF products
1 CO2e emissions (cradle-to-gate), calculated using a McKinsey methodology for analysis
BASF Investor Update I March 28, 2022
27
BASF Investor Update I March 28, 2022
28
We create transparency on the CO2 emissions of our raw materials
as an important step in reducing BASF’s Scope 3 emissions
BASF’s CO2e emissions from raw material
purchase 2021
 BASF is supporting various initiatives to develop and establish
workable standards for the chemical industry
 Supplier CO2 Management Program rolled-out in 2021 to collect
specific PCFs and align on reduction targets
 More than 700 key suppliers have been approached by the end of
2021, accounting for 50% of Scope 3 emissions1
 Collaboration through knowledge sharing on PCF calculation
methodology ongoing to ensure engagement and quality of data
 First suppliers have committed to reducing their emissions
 BASF will make PCFs a buying criterion to ensure PCF reduction
of its sales products
Total
53 million
metric tons1
1 GHG protocol Scope 3.1: purchased goods and services: 55 million tons CO2e, thereof 53 million tons purchased raw materials
50%
addressed by
outreach
BASF Investor Update I March 28, 2022
29
More and more market leaders in important BASF customer
industries are committing to reducing their Scope 3 emissions
First movers in decarbonization set to profit from strong market pull for low-PCF products
1 Source: CapIQ, Science-Based Targets Initiative, CDP Worldwide, McKinsey ESG Solutions / Sustainability Insights.
Customer industries: apparel, automotive, electronics, FMCG and packaging
>70%
of the top
20 companies in
relevant customer
industries
had committed to CO2 emission
reduction targets1 by 2021;
almost half have defined Scope 3
emission targets
Apparel
Electronics
Automotive
FMCG
Packaging
BASF Investor Update I March 28, 2022
30
Product carbon
footprints of
sales products
We have built an industry-leading system enabling us to provide
product carbon footprints calculated with a certified digital solution
 TÜV-certified2
 Meets ISO standards3
 Calculates product carbon footprints
cradle-to-gate
 Transparency on CO2
emissions
 Identification of main
reduction levers
 Certified software
 Transparent
documentation
Customer benefits
CO2
Scope 3
Scope 1 + 2
Software solution
Emissions caused by suppliers
and generation of raw materials
Emissions caused by own
operations1
1 Energy generation and chemical processes
2 ISO 14067:2018
3 ISO 14040:2006, 14044:2006, 14067:2018, GHG Protocol Product Standard
BASF Investor Update I March 28, 2022
31
Name Quantity in MT PCF Total CO2 emissions in MT Selection PCF result Total CO2 emissions incl. emission savings in MT
Emission
savings in MT
Product A 2.0 Zero PCF  0.0 36,501 100%
Product B 2.4 Low PCF  2.3 835 5.4%
Product C 5.3 BMB  0.5 19,341 91.1%
Product D 4.9 Bio-based  3.3 2,634 32.5%
Product E 3.9 Low PCF  3.9 0,0%
Product F 4.7 Standard  4.7 0,0%
Product G 6.0 Standard  6.0 0,0%
Product H 0.0 0.0 0,0%
Product I 2.8 2.8 0,0%
Product J 2.6 Standard  2.6 0,0%
Total 33,287 2.8 93,996 1.0 34,685 59,311 63.1%
0
14,618
1,899
5,465
5,487
3,253
3,579
0
139
110
36,501
15,453
21,241
8,099
5,487
3,253
3,579
0
139
110
18,290
6,318
3,983
1,656
1,409
696
592
225
50
43
Alternative feedstock share (AFS): 71.9%
We help our customers to reduce their CO2 footprints
BASF Investor Update I March 28, 2022
32
BASF and Henkel join forces to substitute fossil feedstock
in Henkel’s Laundry & Home Care and Beauty Care products
 Henkel will substitute fossil with renewable carbon
feedstock from BASF for most of Henkel’s Laundry &
Home Care and Beauty Care businesses in Europe
over the next four years
 Following a successful pilot with Henkel’s cleaning and
detergent brand Love Nature in 2021, we are now
going big with Henkel’s core brands like Persil, Pril,
Fa and Schauma
 Ultimately, around 110,000 tons per year of ingredients
will be substituted with renewable carbon sources with
BASF’s certified biomass balance approach
 The program will ramp up quickly and avoid around
200,000 tons of CO2 emissions in total
BASF Investor Update I March 28, 2022
33
BASF and Henkel are making a significant joint commitment
for a sustainable future
“We are delighted to build on our
cooperation with BASF. We are on
a journey toward an environmental
transformation of our business
model. Integrating BASF’s
biomass balance approach into
our supply chain as an early-
mover is a right step in that
direction.”
Carsten Knobel
Chief Executive Officer
BASF Investor Update I March 28, 2022
34
What we need from German and EU politics to stay on track
to net zero 2050
 Renewable energy capacities: Accelerate renewable energy sources (RES) projects in the
EU and adjust tender criteria to increase economics of non-funded industrial RES projects
 Infrastructure: Expand electricity grids and interconnectors between countries and build a
cross-border CO2 infrastructure as well as an EU regulatory framework in Northwestern Europe
 Funding: Expand funds and improve funding policies to accelerate deployment of new
technologies and incentivize frontrunners
 Processes and lead times: Accelerate decision-making processes for publicly funded
investment and innovation projects as well as permitting processes
 Competitiveness: Maintain cost competitiveness for existing chemical manufacturing, e.g., via
free allocation and indirect cost compensation at benchmark level in EU-ETS, and avoid
distortions for exports under a potential EU carbon border adjustment mechanism
BASF Investor Update I March 28, 2022
35
We are ready for the next level in our transformation –
sustainable growth with products with reduced carbon footprints
 The market for products with reduced carbon footprints is expected to grow strongly
 BASF prepares to offer net-zero products at scale calculated with a certified
digital solution and expects that the market will be short by 2030
 At BASF’s integrated sites, absolute CO2 emissions can be reduced significantly
with a limited number of measures
 The scale of our Verbund sites allows lower specific capex for CO2 reduction
 This will translate into affordable net-zero and low-PCF products to meet increasing
customer demand
BASF’s transformation provides the basis for future profitable growth
BASF Investor Update 2022 Keynote

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BASF Investor Update 2022 Keynote

  • 1. Taking the next step in climate protection – from targets to delivery Dr. Martin Brudermüller Chairman of the Board of Executive Directors BASF Investor Update, March 28, 2022
  • 2. BASF Investor Update I March 28, 2022 1 Cautionary note regarding forward-looking statements This presentation contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. Such risk factors include those discussed in Opportunities and Risks on pages 151 to 160 of the BASF Report 2021. BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements.
  • 3. BASF Investor Update I March 28, 2022 2 BASF Investor Update I March 28, 2022 2 We have ambitious CO2 reduction targets 2030 25% CO2 emissions reduction (compared with 2018)1 2050 net zero CO2 emissions1 1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO2 reduction
  • 4. BASF Investor Update I March 28, 2022 3 Products with reduced PCF Our two perspectives on emission reductions Scope 2 BASF Group targets Product carbon footprint (PCF) Reduction measures at site level kg CO2e per kg Scope 1 Scope 2 Scope 1 Scope 31 CO2 1 Scope 3 emissions from raw materials production by suppliers
  • 5. BASF Investor Update I March 28, 2022 4 Next step: First net-zero and low-PCF products available BASF Investor Update I March 28, 2022 4 1 CO2e emissions (cradle-to-gate), calculated using a McKinsey methodology for analysis ~500g CO2e 0g CO2e A 5% to 15% price increase for net-zero consumer products… …will cover the 25% to 50% higher production costs for chemicals1
  • 6. BASF Investor Update I March 28, 2022 5 Agenda 1. On the road to reaching our CO2 reduction targets 2. Global reduction efforts, individual site approaches 3. Profitable growth with net-zero and low-PCF products BASF Investor Update I March 28, 2022 5
  • 7. BASF Investor Update I March 28, 2022 6 No downstream decarbonization without upstream decarbonization Global GHG emissions Scope 1+2 Electric power Steam Upstream Downstream 22 9 6 5 2 Grey-to-green Continuous opex2 New technologies Power-to-steam 1 Includes emissions from process energy 2 Operational excellence measures Bio-based feedstocks BASF greenhouse gas emissions 2018 Million metric tons per year Energy production 11 Chemical production1 11
  • 8. BASF Investor Update I March 28, 2022 7 Our path to reduce BASF emissions from 2018 to 2030 50% 25% Business as is 2018 Growth (organic, inorganic) Verbund site South China Grey-to- green Power- to-steam Temporary measures CO2 increase from growth CO2 reduction in business as is 2018 Opex New technologies Bio-based feedstocks BASF greenhouse gas emissions (Scope 1 and Scope 2) 2018–2030 Million metric tons
  • 9. BASF Investor Update I March 28, 2022 8 We have defined a corridor for reducing our emissions until 2030 Baseline 2018 21.9 Target 2030 16.4 Projected BASF greenhouse gas emissions Million metric tons CO2 equivalents 15 17 19 21 23 25 27 29 31 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Projected emissions without mitigation 2018 CO2e Trajectory BASF Carbon Management
  • 10. BASF Investor Update I March 28, 2022 9 Credit: Flying Focus BV Construction of offshore wind farm Hollandse Kust Zuid on track BASF Investor Update I March 28, 2022 9
  • 11. BASF Investor Update I March 28, 2022 10 0 25 50 2021 2025 2030 2035 2040 Switching our power to renewable energy will be the main driver of emission reduction until 2025  BASF strives for 100% of power demand 2021 to be green by 2030  BASF power consumption expected to increase strongly due to electrification on our journey to net zero  BASF pursues a make-and-buy strategy to secure access to renewable power  Early investments in renewable power assets expected to offer advantageous economics in the future BASF global power demand and renewable supply projection Terawatt hours of demand covered with renewables 16% 2021 x2-3 2040 power demand of demand covered with renewables >60% 2030 projection Grey energy Green energy Additional need for green energy for electrification, depending on availability
  • 12. BASF Investor Update I March 28, 2022 11 We are delivering with a pipeline of projects to secure supply of renewable energy at competitive prices  Contracted projects in Europe: − Long-term PPAs signed with ENGIE and Ørsted − Investment in largest offshore wind farm; joint ownership with Vattenfall  Pipeline includes project idea for a wind farm together with RWE  BASF Renewable Energy GmbH to focus on supplying BASF Group companies in Europe with renewable energy 0 5 15 10 2021 2022 2023 2024 2025 2026 2030 Make Buy BASF power demand and renewable supply projection in Europe Terawatt hours Grey energy Green energy Additional need for green energy for electrification, depending on availability Buy
  • 13. BASF Investor Update I March 28, 2022 12 High potential from changing to power-to-steam allows decoupling from electricity supply Current situation Gas-fired power plants Gas-fired steam boilers Fossil-based steam generation CO2 CO2 Future situation E-boilers Heat pumps E-drives Electrification of steam generation and reduction of steam consumption
  • 14. BASF Investor Update I March 28, 2022 13 South Central North Overview of projected heat pumps at Ludwigshafen site Comprehensive set of technologies Heat pump (hub) Off-heat Grid connection Power plant Future steam supply concept for Ludwigshafen: Heat pumps to replace fossil-generated steam from today’s power plants Potential to replace up to 1,100 tons per hour of fossil-generated steam Incineration of by-products Gas boiler technology High-pressure steam Cogen or gas boiler technology Heat pump technology Medium-pressure steam E-boiler technology Heat pump technology Freeing up steam for use in central grid by replacing steam drives E-drives
  • 15. BASF Investor Update I March 28, 2022 14 First high-temperature heat pump to supply steam to the BASF Verbund in Ludwigshafen  Integration of a high-temperature heat pump into the BASF Verbund implemented on commercial scale  Use of waste heat and changes to operation of the steam network will avoid 160,000 tons of CO2 emissions per year  Annual cooling water consumption reduced by more than 20 million cubic meters  Engineering design with Siemens Energy is progressing as planned  Startup targeted for Q2 2024 50 MW 50 MW Steam 20 MW Waste heat Renewable energy 80°C 6 bar abs., 200°C
  • 16. BASF Investor Update I March 28, 2022 15 Preparations for the world’s first electrically heated steam cracker furnace on track  Goal is to scale up electrically heated steam cracker furnace concepts in cooperation with Linde and SABIC  Application for funding submitted to Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection  Startup of the pilot plant planned for 2023 subject to positive public funding decision Conventional furnace eFurnace CO2 Raw olefins Naphtha 850°C Furnace Natural gas Renewable energy Naphtha Raw olefins 850°C eFurnace
  • 17. BASF Investor Update I March 28, 2022 16 Operational excellence – a lever to continuously increase our energy efficiency and avoid CO2 emissions Reduction of CO2 emissions through operational excellence measures Kilo tons per year, cumulative  Opex measures helped to reduce CO2 emissions by ~1 million tons from 2013 to 2021  In 2021, ~400 opex measures were realized that reduced CO2 emissions  Examples: − Plant for plastics production repurposed off-heat to generate steam for other plants, equaling ~5,000 tons lower CO2 emissions annually − Further optimized process control in nitric acid cluster avoids 145,000 tons of CO2 equivalents per year  New process to foster opex projects linked to CO2 emission reductions 0 200 400 600 800 1000 1200 1400 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1 1 Forecast
  • 18. BASF Investor Update I March 28, 2022 17 Agenda 1. On the road to reaching our CO2 reduction targets 2. Global reduction efforts, individual site approaches 3. Profitable growth with net-zero and low-PCF products BASF Investor Update I March 28, 2022 17
  • 19. BASF Investor Update I March 28, 2022 18 BASF Investor Update I March 28, 2022 18 Antwerp is BASF’s second largest Verbund site worldwide
  • 20. BASF Investor Update I March 28, 2022 19 Antwerp Verbund site with the aspiration to be the first petrochemical site to approach net zero in 2030 Power- to-steam Projected CO2 emissions of BASF at Antwerp Verbund site1 Million metric tons CCS (phase 1) Grey-to- green New technologies incl. CCS (phase 2) Remaining emissions 1 Emissions from joint ventures are considered according to share of ownership based on normal plant utilization and including published extension projects.
  • 21. BASF Investor Update I March 28, 2022 20 Verbund site Antwerp: CCS is a mature drop-in solution for large-scale process emission abatement  Project consortium Antwerp@C has entered the FEED phase for CO2 infrastructure in the port of Antwerp; BASF is one of the founding members  Project Kairos@C – a consortium of BASF and Air Liquide – has entered the project engineering phase at BASF’s Antwerp Verbund site  International cross-border CCS value chain aiming to reduce BASF’s CO2 emissions in Antwerp by 1 million tons per year in a first step  Planned to be operational by 2025 Full cross-border CCS value chain Emitters Local transport CO2 capture Gathering pipeline Offshore CO2 storage International transport Scope Antwerp@C via ship CO2 terminal via pipeline
  • 22. BASF Investor Update I March 28, 2022 21 BASF Investor Update I March 28, 2022 21 Zhanjiang to become BASF’s third largest Verbund site worldwide
  • 23. BASF Investor Update I March 28, 2022 22 1.8 Phase 1 full start-up Coal-powered petrochemical site of similar scope Gas-powered petrochemical site 2050 net zero Renewable energy Syngas incl. CO2 recycling Cracker eDrive Power supply 4.2 6–9 Cracker Verbund integration Verbund site Zhanjiang uses latest technologies to reduce CO2 footprint compared with standard gas-powered petrochemical site Projected CO2 emissions of BASF at Verbund site in South China Million metric tons Accelerated supply of 100% renewable electricity targeted
  • 24. BASF Investor Update I March 28, 2022 23 Schwarzheide site is a prototype for the energy transformation at mid-sized sites Area of solar farm Schwarzheide  24-megawatt solar farm under construction in joint venture with EnviaM; startup planned for Q2 2022 − Energy to be used for production of cathode active battery materials with best-in-class CO2 footprint − Long-term energy supply at attractive prices  Installation of stationary battery in solar farm planned to buffer fluctuations in renewable energy supply  Modernization of gas and steam turbine power plant in 2022 for more flexibility in integrating renewable energy − 10% more electricity with 16% lower CO2 emissions
  • 25. BASF Investor Update I March 28, 2022 24 15 17 19 21 23 25 27 29 31 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Our roadmap is backed by robust calculations and solid planning Projected BASF greenhouse gas emissions Million metric tons CO2 equivalents Projected emissions without mitigation 2018 Technology-based CO2 abatement projects Grey-to-green (including RECs) Opex Lower CO2 emissions already materialized until 2020 11 million tons of CO2 avoided annually by 2030 Baseline 2018 21.9 Target 2030 16.4
  • 26. BASF Investor Update I March 28, 2022 25 Structured approach to capex spending 1 Depending on public funding Current project pipeline and projected capex Operational excellence 2021 2030 2025 €2-3 billion < €1 billion Pilot scale Engineering and construction1 Operation Engineering and construction1 Pilot furnace First commercial furnace Trial reactor Pilot engineering and construction Pilot operation Global roll-out Global roll-out  eFurnace  Water electrolysis  Methane pyrolysis  CCS  Heat pumps  E-boilers & e-drives Commercial scale Implementation and operation Implementation and operation Implementation and operation
  • 27. BASF Investor Update I March 28, 2022 26 Agenda 1. On the road to reaching our CO2 reduction targets 2. Global reduction efforts, individual site approaches 3. Profitable growth with net-zero and low-PCF products BASF Investor Update I March 28, 2022 26
  • 28. BASF Investor Update I March 28, 2022 27 Consumers will drive demand for net-zero and low-PCF products 0g CO2e1 Transformation enabled by BASF  Chemical raw materials are key contributors to PCFs of consumer products – in the case of shampoo, more than 90%  BASF is able to offer its customers net-zero and low-PCF chemicals by applying a toolbox of emission reduction measures – from raw material choice to green energy  End consumers are expected to drive demand for net-zero and low-PCF products 1 CO2e emissions (cradle-to-gate), calculated using a McKinsey methodology for analysis BASF Investor Update I March 28, 2022 27
  • 29. BASF Investor Update I March 28, 2022 28 We create transparency on the CO2 emissions of our raw materials as an important step in reducing BASF’s Scope 3 emissions BASF’s CO2e emissions from raw material purchase 2021  BASF is supporting various initiatives to develop and establish workable standards for the chemical industry  Supplier CO2 Management Program rolled-out in 2021 to collect specific PCFs and align on reduction targets  More than 700 key suppliers have been approached by the end of 2021, accounting for 50% of Scope 3 emissions1  Collaboration through knowledge sharing on PCF calculation methodology ongoing to ensure engagement and quality of data  First suppliers have committed to reducing their emissions  BASF will make PCFs a buying criterion to ensure PCF reduction of its sales products Total 53 million metric tons1 1 GHG protocol Scope 3.1: purchased goods and services: 55 million tons CO2e, thereof 53 million tons purchased raw materials 50% addressed by outreach
  • 30. BASF Investor Update I March 28, 2022 29 More and more market leaders in important BASF customer industries are committing to reducing their Scope 3 emissions First movers in decarbonization set to profit from strong market pull for low-PCF products 1 Source: CapIQ, Science-Based Targets Initiative, CDP Worldwide, McKinsey ESG Solutions / Sustainability Insights. Customer industries: apparel, automotive, electronics, FMCG and packaging >70% of the top 20 companies in relevant customer industries had committed to CO2 emission reduction targets1 by 2021; almost half have defined Scope 3 emission targets Apparel Electronics Automotive FMCG Packaging
  • 31. BASF Investor Update I March 28, 2022 30 Product carbon footprints of sales products We have built an industry-leading system enabling us to provide product carbon footprints calculated with a certified digital solution  TÜV-certified2  Meets ISO standards3  Calculates product carbon footprints cradle-to-gate  Transparency on CO2 emissions  Identification of main reduction levers  Certified software  Transparent documentation Customer benefits CO2 Scope 3 Scope 1 + 2 Software solution Emissions caused by suppliers and generation of raw materials Emissions caused by own operations1 1 Energy generation and chemical processes 2 ISO 14067:2018 3 ISO 14040:2006, 14044:2006, 14067:2018, GHG Protocol Product Standard
  • 32. BASF Investor Update I March 28, 2022 31 Name Quantity in MT PCF Total CO2 emissions in MT Selection PCF result Total CO2 emissions incl. emission savings in MT Emission savings in MT Product A 2.0 Zero PCF  0.0 36,501 100% Product B 2.4 Low PCF  2.3 835 5.4% Product C 5.3 BMB  0.5 19,341 91.1% Product D 4.9 Bio-based  3.3 2,634 32.5% Product E 3.9 Low PCF  3.9 0,0% Product F 4.7 Standard  4.7 0,0% Product G 6.0 Standard  6.0 0,0% Product H 0.0 0.0 0,0% Product I 2.8 2.8 0,0% Product J 2.6 Standard  2.6 0,0% Total 33,287 2.8 93,996 1.0 34,685 59,311 63.1% 0 14,618 1,899 5,465 5,487 3,253 3,579 0 139 110 36,501 15,453 21,241 8,099 5,487 3,253 3,579 0 139 110 18,290 6,318 3,983 1,656 1,409 696 592 225 50 43 Alternative feedstock share (AFS): 71.9% We help our customers to reduce their CO2 footprints
  • 33. BASF Investor Update I March 28, 2022 32 BASF and Henkel join forces to substitute fossil feedstock in Henkel’s Laundry & Home Care and Beauty Care products  Henkel will substitute fossil with renewable carbon feedstock from BASF for most of Henkel’s Laundry & Home Care and Beauty Care businesses in Europe over the next four years  Following a successful pilot with Henkel’s cleaning and detergent brand Love Nature in 2021, we are now going big with Henkel’s core brands like Persil, Pril, Fa and Schauma  Ultimately, around 110,000 tons per year of ingredients will be substituted with renewable carbon sources with BASF’s certified biomass balance approach  The program will ramp up quickly and avoid around 200,000 tons of CO2 emissions in total
  • 34. BASF Investor Update I March 28, 2022 33 BASF and Henkel are making a significant joint commitment for a sustainable future “We are delighted to build on our cooperation with BASF. We are on a journey toward an environmental transformation of our business model. Integrating BASF’s biomass balance approach into our supply chain as an early- mover is a right step in that direction.” Carsten Knobel Chief Executive Officer
  • 35. BASF Investor Update I March 28, 2022 34 What we need from German and EU politics to stay on track to net zero 2050  Renewable energy capacities: Accelerate renewable energy sources (RES) projects in the EU and adjust tender criteria to increase economics of non-funded industrial RES projects  Infrastructure: Expand electricity grids and interconnectors between countries and build a cross-border CO2 infrastructure as well as an EU regulatory framework in Northwestern Europe  Funding: Expand funds and improve funding policies to accelerate deployment of new technologies and incentivize frontrunners  Processes and lead times: Accelerate decision-making processes for publicly funded investment and innovation projects as well as permitting processes  Competitiveness: Maintain cost competitiveness for existing chemical manufacturing, e.g., via free allocation and indirect cost compensation at benchmark level in EU-ETS, and avoid distortions for exports under a potential EU carbon border adjustment mechanism
  • 36. BASF Investor Update I March 28, 2022 35 We are ready for the next level in our transformation – sustainable growth with products with reduced carbon footprints  The market for products with reduced carbon footprints is expected to grow strongly  BASF prepares to offer net-zero products at scale calculated with a certified digital solution and expects that the market will be short by 2030  At BASF’s integrated sites, absolute CO2 emissions can be reduced significantly with a limited number of measures  The scale of our Verbund sites allows lower specific capex for CO2 reduction  This will translate into affordable net-zero and low-PCF products to meet increasing customer demand BASF’s transformation provides the basis for future profitable growth