BASF 2009/7/8

BASF in Greater China issues first report on economic, environmental, and social performance
@@Seven key indicators standardize and integrate transparency

BASF, the world's leading chemical company, will enhance its transparency in Greater China by reporting annually on seven key financial, social and environmental indicators:
sales, number of employees, occupational safety, water, waste, emissions to air, and energy consumption. BASF Greater China today issued the first report under the new guidelines, revealing the latest information about the company's performance in the world's most dynamic chemical market.

Dr. Tilman Krauch, President, Asia Pacific said, "Sustainability is at the core of everything that BASF does because continuous profitable growth is only possible if it goes hand in hand with taking responsibility for society and the environment. With the publication of our first report on our financial, environmental, and social performance in China, we show how we have consistently been applying global standards in our operations in Greater China."
Mr. Johnny Kwan, Chairman of the BASF Greater China Country Board, said, "We are proud to present the first report about BASF in Greater China. The data will be constantly monitored for continuous and further improvement of our economic, environmental and societal July 8, 2009 performance. We will continue reporting on our activities with regard to the three pillars of sustainable development in Greater China every year.
Among other communication channels, the report will be one important on-going effort to deepen the dialogues with our stakeholders in a more systematic, consistent and transparent way."

Since the 1990s, BASF has invested
more than EUR 2 billion in the Greater China area, with major investments coming on stream in Nanjing and Shanghai from 2005. Sales have grown around 20% each year over the past decade. During this growth period, BASF also improved key emission data through continuous optimization and innovation.
In 2008, emissions of greenhouse gases from BASF's chemical operations in Greater China amounted to 1.8 million metric tons, a reduction of 5.2% compared to 2007. This was achieved mainly through technological upgrades of plants.

Energy efficiency, defined as primary energy consumption (fuel, electricity, steam) per ton of product was improved, and helped reduce BASF's overall energy consumption in Greater China, thereby also lowering emissions. In Greater China, energy efficiency increased by 50% between 2002 and 2008.

BASF continually optimizes its production processes in order to minimize air and water pollution as well as waste.
Emissions of air pollutants such as carbon monoxide (CO), sulfur oxides (SOx), nitrogen oxides (NOx), ammonia and other inorganic compounds, dust, heavy metals and volatile organic compounds (NMVOCs) in Greater China amounted to 950 metric tons in 2008. This corresponds to a 10% reduction compared with 2007. The reduction in air pollutants was achieved despite an increase in production volumes in the same period, mainly by implementing process innovations.

BASF is gradually reducing
water consumption and is reusing as much water as possible. In 2008, the company used 12.9 million cubic meters of water in Greater China (a reduction of 4.4% compared to 13.5 million cubic meters in 2007). The majority of this amount was used for cooling.

BASF in Greater China discharged a total of 7.3 million cubic meters (a reduction of 37% compared to 11.5 million cubic meters in 2007) of
wastewater. The quality of all of BASF's wastewater fulfilled local regulatory requirements as well as BASF's own global standards.

Emissions of
organic substances to water amounted to 456 metric tons in 2008 (minus 42% compared with 787 metric tons in 2007). The emission of nitrogen to water was about 80 metric tons (minus 11% compared with 90 metric tons in 2007). In 2008, emissions of heavy metals amounted to one metric ton, 83% less than the year before.

In 2008, BASF generated around 42,200 metric tons of
solid waste in Greater China (minus 25% compared with 56,300 metric tons in 2007).
Around 66% of this waste was recycled or subjected to thermal recovery. The remainder was disposed of by incineration (31%) or landfills (3%). The aim is to further reduce the amount of solid waste generated and to improve the recycling quota.

Worldwide, BASF strives to reduce
accidents and injuries. The company
fs global goal for 2020 is to reduce lost time injury rate per million working hours by 80% compared with 2002. The lost time injury rate in Greater China was 0.4 per million working hours in 2008, a reduction of 50% compared to 2007 (0.8 per million working hours). No work fatality was recorded in 2008.

BASF in Greater China
BASF has been a committed partner to Greater China since 1885. It is one of the biggest foreign investors in the Chinese chemical industry. BASF has about
6,300 employees in Greater China and posted sales of about Euro4.2 billion in 2008. The company operates 19 BASF wholly owned subsidiaries and 10 BASF joint ventures in Greater China.