BASF evaluates sustainability of portfolio via new process

BASF evaluates sustainability of portfolio via new process

BASF has developed a new process for evaluating its product portfolio based on sustainability criteria.

In a move that it says will better help its customers align environmental and societal aspects with business success, the chemicals giant has created "The Sustainable Solution Steering" method to systematically review and evaluate products.

Over the past three years, BASF has used the externally validated process to analyze more than 80 percent of its portfolio of around 50,000 specific product applications and aims to have all products assessed by the end of the year.

The data show, for example, how a product contributes to cost effectiveness and resource conservation as well as to health and safety. The sustainability requirements of various customer industries are taken into account as well as regional differences. The process also determines the extent to which BASF solutions can accommodate these needs.

Based on the results to date, the analyzed product applications have been sorted into four categories:

1. Accelerators make a substantial contribution in the value chain to sustainability. Twenty-two percent of the analyzed products by sales are in this category.

2. Performers are solutions that meet the standard market requirements for sustainability. Around 73 percent fall under this category.

3. For the Transitioners, specific sustainability issues have been identified and concrete action plans defined. These recommendations are in the process of being implemented. Around 4.5 percent of the analyzed products are currently in this category.

4. Applications with a significant sustainability concern are labeled Challenged. BASF is developing action plans for these products in order to find improved solutions. This currently applies to 0.5 percent.

BASF says Sustainable Solution Steering aims to increase the number of “Accelerator” solutions in the long term.

“It is becoming increasingly important to our customers to be able to combine economic, environmental and societal demands," said Kurt Bock, chairman of BASF's board of executive directors.

"We see this development as a business opportunity for BASF, and intend to seize it in a targeted manner. This approach forms an integral part of our corporate purpose: ‘We create chemistry for a sustainable future.’ By analyzing our entire portfolio with respect to sustainability and systematically expanding on especially sustainable solutions, we underscore this endeavor.”

This article originally appeared at 2degrees and is reprinted with permission. Top photo of feedback concept by Olivier Le Moal via Shutterstock

Topics: