Success – BASF‘s Approach to Sustainability in Customer Interaction

European Chemical Regions Network (ECRN) 29./30.11.07 LudwigshafenDr. Uwe Gauglitz

The Four Strategic BASF Guidelines The Four Strategic BASF Guidelines for Long-term Successfor Long-term Success

Formthe best teamin the industry

Earn apremium on ourcost of capital

Help ourcustomers to bemore successful

Ensuresustainabledevelopment

Responsible Care®: Part of Corporate Goals BASF assumes responsibility for safety, health and environment

beyond what is required by legal regulations.

The company asserts its claim to maintain and help shape the political background conditions that secure competitiveness.

As the world’s leading chemical company, BASF sees itself as having a special responsibility to implement international strategies and standards within its own company.

BASF`s environmental balance reflects the success of intelligent energy and waste disposal concepts that reduce CO2 emissions and conserve resources.

One of the key challenges of Responsible Care® is…

…the promotion of RC goals within the whole value chain

Success – Adding Value through Sustainability

Success bundles BASF‘s Responsible Care® expertise in the fields of sustainability management, health, safety, and environment.

This expertise is based on decades of own strategic and operational experience, as well as more than 350 projects with customers and suppliers.

Together with our products, we offer that expertise to our customers and suppliers.

The goal of Success

We want to…

increase and spread sustainable development beyond our internal activities.

help our customers to be more successful.

create enduring customer partnerships by working together for sustainable development.

Provide an additional differentiation factor and new market opportunities

… create business value for both parties: a win-win situation

Success Service areas

PROCESS: “We assist you in optimizing your processes” Waste Management Wastewater Treatment Energy Consultancy Health and Safety at the Workplace Emergency Response

PRODUCT: “We analyze your product potential“ Environmental trace analysis REACH Consultancy Hazardous Substance Management Toxicology and Ecology The Eco-Efficiency Label

STRATEGY: “We support your strategies“ Sustainability Management Eco-Efficiency Analysis Energy Efficiency Climate Protection

Examples of customer partnership projects

Environmentally friendly wastewater treatment

Eco-efficient milk packaging

Reduction of odour nuisance

Need

A client from the automotive industry introduced a new coating process which caused an additional 150.000 liters of wastewater per day.

The BASF wastewater experts developed a system to solve the problem - as a result the automobile manufacturer could switch to the new coating process as scheduled.

Need

A dairy producer is looking for the most ecological and profitable milk packaging solution.

Our Contribution

BASF‘s eco-efficiency analysis contributed to the political decision to exclude certain plastic containers from the deposit system.

Need

An Italian customer was faced with massive complaints from neighbours and the authorities about an odour nuisance arising from his plant.

Our Contribution

With BASF’s support technical and organizational improvements could be identified and implemented. The odour was eliminated and good relations with neighbours and authorities were restored.

Our Contribution

Conclusions

Potential for further Success

More than 350 projects since the beginning of the Initiative

Broader customer interaction

We spend more time with our customers and suppliers with a non product price related topic… better understanding of our customers and suppliers

Promotion of Responsible Care®

Strive the promotion of Responsible Care® through the value chain and translate it into business opportunities

Contact information

BASF Aktiengesellschaft

Success-Info-Point

D - 67056 Ludwigshafen

Telephone: +49 621 60 79777

Fax: +49 621 60 6679777

Email: success-team@basf.com

Web: http://www.basf.de/reach

What are the main serviceWhat are the main service

areas within areas within SuccessSuccess??

Product Safety/ Chemical Policy, REACH

Experimental Toxicology and Ecology

Emissions, Ambient Air Concentrations, Environmental Analysis

Waste Management

Soil Protection and Ground Water Pollution

Wastewater

Energy Generation, Energy Conservation

Emergency Response

Distribution Safety

Authorizations, Statutory Regulations

Safety, Health at the Workplace

Sustainability

The REACH ApproachThe REACH Approach

REACHREACH

The new EU chemicals regulation for the Registration, Evaluation and Authorisation of Chemicals

(REACH) came into force on June 1st 2007

REACH applies to all companies manufacturing, importing or using

chemicals.

The REACH SystemThe REACH System

Objective: Registration of all existing substances on the market 1 t/a (approx. 30.000)within 11 years

Known substances

Used substances

>= 1 t/a • Technical dossier• for 10 t/a: Chemical

Safety Reports

Registration

Evaluation

Evaluation of the data by the central agency andnational authorities

*CMR: carcinogenic, mutagenic, reprotoxic *vPvB: very persistent, very bioaccumulative *PBT: persistent, bioaccumulative, toxic *endocrine disruptors: influencing the hormonal system

Authorisation

Authorisation for special uses of CMR 1+2*, PBT*, vPvB* and other substances “of similar concern” (e. g. endocrine disruptors)*

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

1000 t/a, CMR 1+2 ( 1 t/a), R50-53 ( 100 t/a)

Registration

Registration

Registr. EvaluationEntry into force

End of „Phase-in“

Pre

-reg

istr

atio

n

Timelines of REACHTimelines of REACH

1 June 2008-30 Nov 2008

Eval.

>/= 100 t/a Registration Evaluation

Authorisation / Restriction

>/= 1 t/a Registration

REACH services for customers as: REACH services for customers as: manufacturers or importersmanufacturers or importers

If the customer is a manufacturer or importer of chemicals within the EU, all substances must first be preregistered, then registered. Applications of certain substances require authorisation.

Information Assessment of current situation Preregistration Registration

Authorisation

Examination of available documents e. g. safety data sheets

Testing

Assessment

Drawing up of the chemical safety report

Drawing up of authorisation documents

Implementation of a socio-economic analysis

REACH services for customers as: REACH services for customers as: downstream usersdownstream users

As a downstream user of chemicals in the EU, it is usually sufficient to verify whether your use is covered in the extended safety data sheet. You must also adhere to the risk reduction measures described there (e. g. protective equipment, local exhaust ventilation)

Assessment of current situation

The downstream user decides whether he

…. informs his supplier for assessing the use and including it in the safety data sheet; Communication with supplier and training if necessary Assistance for the supplier with fulfilling his REACH obligationsor…. would like the use to be assessed independently of the supplier; Assessment of uses Support when communicating with authorities

The Success - Team

Dr. Andreas KichererSuccess Team Leader

Dr. Susanne DemharterMarketing REACH Services

Peter KölschMarketing REACH Services

Dr. Uwe GauglitzHead of Success Services

Dr. Ana Alba PérezManagement Success Services

Monika Schreiber-DüngesManagement Success Services

Tanja DreyerSuccess-Info-Point

Anne Haunhorst Business Model

Develop.

Eva KratzerBusiness Model Develop.

Annette KundeHead of Business Model Development (BMD)

Success provides BASF‘s EHS experts for external customers

Business Unit A

Business Unit B

Productionsite 1

Experts

EHS-Functional UnitExperts

ExpertsExperts

Productionsite 2

serv

ice

serv

ice se

rvic

e

serv

ice

serv

ice

customer

Su

cce

ss-t

eam

Administration, offer

Coordination

Service