April 10, 2021
Source: BASF
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BASF has published a comprehensive corporate carbon footprint since 2008, the only industrial enterprise worldwide to do so. The annually updated balance gives us pointers on where the influencing factors for preventing greenhouse gas emissions are. So we can check whether we are on the right track for meeting our goals to reduce greenhouse gases.
Schematic overview: development of the BASF Group’s greenhouse gas emissions (Scope 1 and 2)
We consider the whole BASF value chain and determine how many emissions are produced by which activity, from the supply of raw materials and precursors via our own production and the use of the end products we produce through to disposal of all our products at the end of their life. The analysis adheres to the Greenhouse Gas Protocol standards and the standard for the chemical industry specific to the sector published in 2013; we were closely involved in the development of this.
Greenhouse gas emissions along the BASF value chain
Balancing sets out three emission ranges (scopes):
Scope 1 records direct CO2 emissions. They come from emission sources at BASF sites and include for example our own production plants and plants for generating power and steam.
Scope 2 relates to indirect CO2 emissions produced by our suppliers in generating energy that we then purchase for our production.
Scope 3 comprises all other CO2 emissions produced along the value chain (e.g. with suppliers, in the use phase of the products, in disposal and in transport). These emissions are recorded in 15 different categories.
The emissions along the value chain for 2022 – emissions are given in million metric tons of CO2 equivalents, categories within Scope 3 are shown in parentheses. Emissions in BASF production include Scope 1 and Scope 2 (market-based approach).
Scope 3 emissions along the BASF value chain in 2022a
a According to the Greenhouse Gas Protocol; Scope 1, 2 and 3; reported categories within Scope 3 are shown in parentheses. Scope 3 emissions in category 10 (“Processing of sold products”) are not reported according to the standard for the chemical sector. Only direct use phase emissions are reported in the customer category (Scope 3.11). Greenhouse gas emissions in BASF production (GHG Protocol Scopes 1 & 2) In accordance with the GHG Protocol Corporate Accounting Standard, we report Scope 1 and Scope 2 emissions separately. Regarding Scope 1 emissions resulting from the generation of energy, we also differentiate between emissions from energy production for our own consumption and emissions from energy production for sale to third parties. For Scope 2, we consider the location-based approach as well as the market-based approach. We report on all emissions from our fully consolidated companies’ production sites worldwide. The emissions of consolidated joint operations are included pro rata, based on our stake.
a BASF reports separately on direct and indirect emissions from the purchase of energy. Scope 1 emissions encompass both direct emissions from production and generation of steam and electricity, as well as direct emissions from the generation of steam and electricity for sale. Scope 2 emissions comprise indirect emissions from the purchase of energy for BASF’s use.
b Emissions of N2O, CH4 and HFC have been translated into CO2 emissions using the Global Warming Potential, or GWP, factor. GWP factors are based on the Intergovernmental Panel on Climate Change (IPCC) 2007, 2012 for the 2018 reporting year, and IPCC 2014 for the 2021 and 2022 reporting years. HFC (hydrofluorocarbons) are calculated using the GWP factors of the individual components.
c The comparative figure for 2021 has been adjusted to reflect updated data. d Market-based approach. Under the location-based approach, Scope 2 emissions were 3,670 million metric tons of CO2 in 2021 and 3,588 million metric tons of CO2 in 2022. e Includes sales to BASF Group companies; as a result, emissions reported under Scope 2 can be considered twice in some cases. f Emissions are reported seperately from Scope 1 and Scope 2 in accordance with the Greenhouse Gas Protocool. Greenhouse gas emissions from the value chain (GHG Protocol Scope 3) Our list of Scope 3 emissions is based on the GHG Protocol Scope 3 Standard (Corporate Value Chain Accounting and Reporting Standard). We have checked all 15 categories in this standard for relevance and report the emissions for the 12 relevant categories. Our Group companies are then consolidated just as in our financial reporting, the exception being the determination of emissions in Scope 3 categories 3, 5 and 9, where we have adopted the same approach as in the reporting for Scope 1 and Scope 2 emissions.
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