Shanghai , China, June 19 , 20 13 – BASF, t he world’s leading chemical company, has published i ts 2012 annual r eport on economic, environmental and social performance in Greater China . BASF in Greater China – Report 201 2 1 is the company’s f if th integrated local report. With sales of BASF group companies to customers in Greater China of approximately €6.7 billion (restated according to IFRS: over €5.1 billion2), BASF continued its steady growth through enhanced research and development (R&D) capabilities and a stronger local presence. BASF employed 8,435 people (restated according to IFRS: 7,305 employees 2) in Greater China as of the end of 2012.

"2012 was a year of change for BASF in Greater China, with the rapid expansion of our production footprint and the opening of our Asia Pacific Innovation Campus in Shanghai. BASF is now positioned in Greater China to play a major role in driving innovative solutions from Asia Pacific to the world, which has helped us achieve stable sales growth even in a difficult year. While we increased our production volumes, we also achieved reductions in several environmental indicators such as our emissions to water,” said Dr. Albert Heuser, President Greater China and Functions Asia Pacific, BASF. “At the same time, we took significant steps in 2012 to enhance our commitment to societal engagement and employee development at a local and national level.”

Innovative solutions from Greater China for Asia Pacific

In 2012, BASF put additional focus on providing innovative solutions in Greater China such as composting of organic waste, tackling vitamin A deficiency in children, and improving air quality with catalysts that reduce PM2.5, ultra-fine particles less than 2.5 microns in size that can be harmful to health.

The first BASF Innovation Campus Asia Pacific was inaugurated in November 2012 at the Pudong site in Shanghai, marking an important milestone of the company’s continuous effort to expand its local R&D capabilities to provide innovative and tailor-made solutions to the customers in Asia Pacific and beyond. This new facility is part of BASF’s global R&D network.

The overall expansion of the Pudong site marks an important milestone in the history of BASF in Greater China. In 2012, more than 1,000 employees from sales, marketing, R&D and functional units moved into the new BASF Grater China headquarters and the Innovation Campus Asia Pacific, making the Pudong site one of the biggest BASF integrated sites worldwide. This provides a platform for deeper collaborations among BASF employees, customers and the community.

BASF has established an extensive production network in Greater China and 2012 also saw progress in several expansions or new projects in Nanjing, Tianjin, Huizhou, Taiwan and Chongqing. Local production enables more intensive collaboration with customers based in Greater China, and improves resource efficiency.

Excellent performance in environment, health and safety

In 2012, BASF maintained excellent performance in environment, health, and safety indicators. Occupational safety both for BASF employees and contractors was maintained at a high level, with the lost time injury rate per million working hours at 0.3 and 0.2 respectively (2011: 0.2 and 0.2 per million working hours). BASF also took a variety of measures including continuous improvements in production efficiency to control emissions to air and water. To use water more efficiently, BASF introduced a more sustainable water management system at production sites in Greater China, which resulted in decreases in emissions to water and total water supply despite the increase of production volumes in 2012. Meanwhile, emissions to air such as greenhouse gases (approximately 2.2 million metric tons of CO2 equivalents) and air pollutants (1,304 metric tons) showed increases from the previous year. Recycling or recovery of waste was maintained at the previous year’s high level, 80%. BASF’s safety and health performance was recognized by the local authorities and associations in Shanghai, Jiangsu and Taiwan.

BASF continues to promote responsible operations and to share best practices along its supply chain through innovative models in Greater China. In 2012, BASF continued the successful “1+3” project, which encourages environmental protection, health and safety behavior among partners including customers, suppliers and logistics service providers.

Commitment to employees and society

The BASF “Grow” Graduate ProgramTM, which has been running for five years, aims to recruit, train and develop talented graduates from all over China by offering customized training and job rotation. The successful trainees from the program are now playing increasingly important roles with BASF in Greater China. In addition, BASF has been providing tailor-made training resources and development opportunities to its employees for their career development.

Through local programs such as volunteer teaching, assistance to the disabled, and support to schools in Sichuan, BASF aims to increase societal engagement. Additionally, BASF supports higher education and research in China through the Sino-German Research and Development Fund, the Peking University – BASF Fascinating Chemistry Course, the BASF Cup in partnership with the Beijing University of Chemical Technology, and the BASF Youth Innovation Prize. Since 2006, more than 2,000 undergraduates and postgraduates from 15 universities have received a variety of BASF scholarships.

BASF in Greater China publishes Report 2012