SB'12 - Volker Schaedler - BASF
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A global revolution is in full swing, and the Sustainable Brands Conference is where sustainability, brand and innovation leaders gather to learn, share and strategize to shape the future. SB'12 was the largest gathering to date, a kinetic convergence of innovators from more than 150 companies from around the world finding new ways to create monumental disruption in traditional models of commerce and consumption.
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SB'12 - Volker Schaedler - BASF
- 1. FRAMING THE REVOLUTION, AND HOW CONNECTIONS CREATE CHEMISTRY Volker Schaedler, BASF
- 3. The World’s Leading Chemical Company § Serves all major industries § World-class, innovative, high-value products § Intelligent, sustainable system solutions 3
- 4. The World’s Leading Chemical Company § 385 production facilities including six Verbund sites § 2011 Sales: €73.5 Billion § Employees: 111,000+ 4
- 5. Leader in Innovation Plastics Chemicals 9% 8% Performance Corporate Research Products 21% circa 23% €1.61 billion Oil Gas 1% 12% Functional Solutions 26% Agricultural Solutions 5
- 6. Why – Our purpose We create chemistry for a sustainable future. 66
- 7. Sustainable Solutions Are Our Path to Growth SUPPLY Earth’s resources DEMAND + Annual Human beings now regenerative demand more from capacity the Earth than can be 1976 2010 of the planet regenerated Consumption of Earth’s resources Source: Accenture. 77
- 8. How - Our values ›❯ Creative ›❯ Open ›❯ Responsible ›❯ Entrepreneurial 8
- 9. Demographic challenges Nine billion people in 2050 but only one earth Resources, Food Nutrition Quality of life Environment Climate Chemistry as enabler 9 9
- 10. Solutions We Enable Resources, Environment Food Nutrition Quality of life Climate Chemistry as enabler Customer industries Transportation Construction Consumer Health Energy Goods Nutrition Electronics Agriculture Resources Batteries Heat Organic Plant Energy management Enzymes Medical Electronics biotechnology management Lightweight Functional Rare earth Growth fields* composites crop care metals recycling Heat management Wind energy Water solutions 10
- 11. Verbund in Action – Daimler and BASF Combine Know-how in “smart forvision” Lightweight Solar roof with tridion cell transparent organic solar panels High-performance foams E-textiles Infrared-reflective film Multifunctional seat Chemistry as enabler: Infrared- reflective Smart forvision All-plastic coating wheel 11 11
- 12. What Can We Do Together? Customer industries Transportation Construction Consumer Health Energy Goods Nutrition Electronics Agriculture Resources Batteries Heat Organic Plant Energy management Enzymes Medical management Electronics biotechnology Lightweight Functional Rare earth Growth fields* composites crop care metals recycling Heat management Wind energy Water solutions 12
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Editor's Notes
- Thanks to the organizers, I am pleased to have the opportunity to kick off what we know is going to be a powerful week of new learning and building new connections and to talk about a topic that is important to BASF which is how connections create chemistry and why we are here to help support new connections that we hope will create new chemistry at SB’12 1 minute.
- First I’d like to start by telling people a little about BASF and why we believe that connections that create chemistry are the answer to the future…. 1 minute BASF is a Fortune 100 company – the worldwide leader in applying the science of chemistry to solve problems, meet challenges and define modern life all over the world. We do business everywhere people do business; our innovative products and technologies, while not household names, are widely used and known by producers of commercial goods, especially throughout Europe and the Americas.
- First I’d like to start by telling people a little about BASF and why we believe that connections that create chemistry are the answer to the future…. 1 minute BASF is a Fortune 100 company – the worldwide leader in applying the science of chemistry to solve problems, meet challenges and define modern life all over the world. We do business everywhere people do business; our innovative products and technologies, while not household names, are widely used and known by producers of commercial goods, especially throughout Europe and the Americas.
- A little more about your commitment to and investment in innovation – 2 minutes perhaps? Innovation based on research and development is the foundation of BASF’s strategy for profitable growth and long-term business success. Along with innovative products, improved processes and intelligent system solutions also play a big role in ensuring BASF’s sustainable success and the success of its customers. In 2011 we spent ca. €1.61 billion on research and development and increased our R&D expenditures by 50% compared with 2005. No other chemical company spent more in R&D than BASF. The operating divisions accounted for 77% of research expenditures, while the remaining 23% was allocated to cross-divisional, strategic corporate research. Around one third of our research and development expenditure was once again invested in products and technologies for increased energy efficiency, as well as climate protection, resource conservation and alternative raw materials. Our research pipeline included a total of 2,800 projects in 2011. One way in which a company measures its innovative power is by the number and quality of its patents. We ranked first in the Patent Asset Index TM for the third time in succession. This method, which compares patent portfolios throughout the industry, found BASF to be the most innovative company in the chemical industry worldwide. We aim to achieve sales of around €30 billion in 2020 with innovations – new and improved products or applications that have been on the market for ten years or less. Source: basf.com/innovation; BASF Report 2011, page 28 ff.
- We are the world’s leading chemical company. But what does that mean? 1 minute The answer to this question can be summed up in our purpose as a company: We create chemistry for a sustainable future. This is the answer to the question of why BASF is in business. It is important to have a clear and convincing answer to this question, since only then can we also convince our customers, investors, neighbors and society and motivate ourselves as a team. We combine economic success, social responsibility and environmental protection. Through science and innovation we enable our customers to meet the current and future needs of society. In this way we contribute to solutions for global challenges. INTERNAL
- Growing demand is putting an increasing strain on our planet. We already consume more than the Earth can regenerate: 1.5 times the capacity of our planet. Sustainability is therefore a crucial issue for our future. 30 seconds Awareness for sustainability is also increasing among our stakeholders: Customers want sustainable products, industry wants sustainable solutions. Employees want to work for a company that takes sustainability seriously. Our reputation in society depends on how we perform in this regard, and regulations worldwide are becoming increasingly strict. Contributing to sustainable solutions is our path to growth INTERNAL
- 2 minutes maybe? Today‘s complex problems require collaboration across stakeholder groups. In addition to it‘s world leading internal team of experts, BASFhas an active strategy represented by the german word VERBUND, to build partnerships that can help us deliver better, more sustainable solutions to market faster. We are currently engaged in 1,950 cooperative partnerships around the world with universities, research institutions, industry partners in various market sectors, and start-ups, all of which help us remain an innovation leader, strengthen our business and contribute more actively to a better future for our kids. In developing the “We create chemistry” strategy, we have also redefined our values. These were discussed beforehand in workshops around the world with employees from different functions and levels within the organization. It is important that each and every member of the BASF team understands our corporate values and acts accordingly. This is because our values are an integral part of bringing our purpose as a company to life: “We create chemistry for a sustainable future.” They guide how we interact with society, with our partners and with each other. Creative In order to find innovative and sustainable solutions, we have the courage to pursue bold ideas. We bring together our knowhow in many different fields and build partnerships to develop creative, value-adding solutions. We also constantly work to Improve our products, services and solutions. Open We value diversity – in people, opinions and experience. That is why we foster dialog based on honesty, respect and mutual trust. We continually explore our talents and capabilities. Responsible We act responsibly as an integral part of society. Thereby, we strictly adhere to our compliance standards. And we never compromise on safety. Entrepreneurial We all contribute to BASF’s success, as individuals and as a team. BASF turns market needs into customer solutions. We succeed in this because we take ownership and embrace accountability for our work. Source: BASF Report 2011, page 16 et. seq.
- How have we established our innovation strategy? How do we prioritize what partnerships we seek to create? We believe chemistry will play a particularly important part in driving innovation and sustainability in three areas: 1-2 minutes Natural resource protection? , environment and climate (don’t know what you mean exactly by resources as it pertains to BASF – I would call this category healthy, sustainable environment) food and nutrition quality of life . (give 1-2 examples?) In 2050, nine billion people will live on this planet. If we don’t change anything in the way we live and manufacture goods then we will need the resources of almost three of our planets to meet the demands of the population. We are therefore facing huge global challenges. At the same time, these challenges open up many opportunities for the chemical industry. The challenges can be clustered into three major areas: Resources, environment and climate: Dramatically rising energy demand is one of the world’s most pressing challenges. In addition, access to clean water and other non-renewable resources is becoming increasingly important. Food and nutrition: A growing world population obviously needs correspondingly more food, which has to be produced from less arable land. And it will be necessary to enhance nutrition quality. Quality of life: Aspirations differ greatly from region to region and among different social groups, but there is a common ambition: People want to improve their individual quality of life. This may take very different forms, depending on a country’s economic and demographic development: In some places, the focus is on affordable housing or cars, elsewhere the emphasis is on good healthcare or effective pharmaceuticals. In all these areas, chemistry acts as an enabler for innovation and sustainability. As the world’s leading chemical company, we can play a crucial role in meeting the needs of a growing world population. Source: Strategy presentation
- NOTE:. We applied animation so that one column comes up at a time – click in Slide Show to see. Volker will choose some specific solutions for each industry and spend 30-45 seconds on each sector. 2-3 minutes perhaps total on this content Chemistry will play a particularly important part in driving innovation and sustainability in three areas: resources, environment and climate food and nutrition quality of life. On this basis we have defined seven customer industries in which we want to contribute to solutions and thus continue to grow profitably: transport, construction, consumer goods, health and nutrition, electronics, agriculture, energy & resources . In turn, these customer industries result in new growth fields for BASF in which we can make a decisive contribution to innovative, sustainable solutions for the global challenges I just spoke about. Examples of growth fields in which we already offer solutions are batteries, plant biotechnology and water treatment. Further growth fields are currently being developed or are under analysis. The fields shown on the chart should be seen just as examples. Source: Strategy presentation
- 4 minutes total VERBUND IN ACTION – We believe that in order for BASF to be an innovation leader, and for us as a business community to bring to market the kinds of solutions that are needed to ensure our sustainable future, we need to develop a culture of collaboration, and expertise in this new business approach that sees partnerships as the path to speed, agility and ultimately, competitiveness and financial success. BASF has been building this capacity for many years. Here is an example of how BASF partnered with other companies to create solutions that will enable the next generation of mobility. Pick 3-4 points and spend 1 minute each talking about each of these points, who was involved in R&D collaboration, and what impact the new technology will enable. How to take these kinds of solutions to the next level by creating new chemistry amongst new partners? Take on the challenge of electromobility by combining unique capabilities of our company with others Daimler and BASF have developed a new concept vehicle that combines both companies' ideas for holistic electric mobility. The resulting vehicle is the smart forvision, which has been developed with a special emphasis on energy efficiency, temperature management and lightweight design. Here is a successful example that reflects all these ideas. We presented the smart forvision with Daimler for the first time at the international automotive fair, IAA, in Frankfurt in September 2011. This smart is an electric vehicle. In this case, our innovative contribution lay in increasing the energy efficiency and thus the driving range of the vehicle. This is a major factor in making electromobility economically and commercially viable. BASF provided many components. Here are just a few examples: Organic solar cells transform sunlight into electricity. Organic light-emitting diodes (OLEDs) light the interior. Plastic components reduce the vehicle’s weight and hence its energy consumption. Special pigments in the coating and high-performance insulating materials help reduce the energy needed for temperature management. All of these innovations make it possible to use energy efficiently and cut CO 2 emissions – and they would, of course, also work in vehicles with combustion engines. Colleagues from different divisions and disciplines worked on these solutions for the smart. Read more: smartforvision.basf.com/
- 1 minute During the week while we’re together at SB’12, we hope to engage in conversation with many of you to and to imagine together new ideas to fill some of these boxes on our strategy chart. And we hope that all of you take advantage of the opportunity to be here together with so many passionate thought leaders who together have the potential to change the world for the better. We invite people to come visit us in our booth during the week, and we look forward to creating some chemistry together starting with this evening’s “Connections Create Chemistry” party and collaboration kick start.