Scope 3 GHG Inventory Report - BASF

1 February 2021. Scope 3 GHG Inventory Report Contents 1. Introduction .. 1. 2. Descriptive information .. 2. 3. Greenhouse gas emissions data .. 5. 4. Biogenic carbon emissions .. 6. 5. Description of Scope 3 methodologies and data used .. 7. 1. Introduction The calculation of basf 's Scope 3 emissions is based on the Greenhouse Gas Protocol Corporate Value Chain ( Scope 3) Accounting and Reporting Standard and the Guidance for Accounting and Reporting Corporate GHG Emissions in the Chemical Sector Value Chain (WBCSD). The Scope 3 emissions are calculated by category in accordance with the guidelines of the GHG Protocol Standard (at least minimum boundaries ). basf SE.

2 67056 Ludwigshafen 2. Descriptive information Descriptive information Company response Company name basf . At basf , we create chemistry for a sustainable future. We Description of the company combine economic success with environmental protection and social responsibility. More than 117,000 employees in the basf . Group work on contributing to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio is organized into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. basf generated sales of 59 billion in 2019. basf shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the Further information at The emissions of basf SE subsidiaries that are fully consolidated Chosen consolidation approach in the Group financial statements in which basf holds an interest (equity share, operational control of less than 100% are included in full.)

3 The emissions of or financial control). proportionally consolidated joint operations are disclosed pro rata according to basf 's interest. Our Scope 1, Scope 2 and Scope 3 emission figures stated in this Report do not include the polyamide business acquired from Solvay as of January 31, 2020. Description of the businesses and basf reports Scope 1 and Scope 2 emissions from all production operations included in the sites of fully consolidated companies and proportionally company's organizational consolidated joint operations worldwide. We do not Report GHG. boundary (Description of the emissions from mobile combustion and from facilities other than Inventory boundary, including an production and power plants.

4 GHG emissions from equity- outline/description of the accounted joint ventures and equity-accounted associated organizational ( Scope 1) companies as well as from subsidiaries and associated boundaries of the reporting companies that are not financially consolidated due to company) immateriality are not included in basf 's Scope 1 or Scope 2. emissions. The GHG emissions from equity-accounted joint ventures and equity-accounted associated companies are reported in category 15 of Scope 3 emissions. Scope 3 emissions are reported for all basf Group companies included in the Consolidated Financial Statements on a full or proportional basis, unless stated otherwise.

5 The emissions of joint operations are included pro rata, based on basf 's stake. Relevant Scope 3 emissions categories (> 1 million t CO2. equivalents) that are part of basf 's Scope 3 emissions Inventory are: Category 1: Purchased goods & services Category 2: Capital goods Category 3: Fuel- and energy-related activities (not incl. in Scope 1 or 2). 2. Category 4: Upstream transportation and distribution Category 5: Waste in Operations Category 9: Downstream transportation and distribution Category 11: Use of sold products Category 12: End-of-life treatment of sold products Category 15: Investments The reporting period covered 01/01/2020 -12/31/2020. A list of Scope 3 activities included Category 1: Purchased goods & services in the Inventory Category 2: Capital goods Category 3: Fuel- and energy-related activities (not incl.)

6 In Scope 1 or 2). Category 4: Upstream transportation and distribution Category 5: Waste generated in operations Category 6: Business travel Category 7: Employee commuting Category 8: Upstream leased assets Category 9: Downstream transportation and distribution Category 11: Use of sold products Category 12: End-of-life treatment of sold products Category 15: Investments A list of Scope 3 activities Category 10 (Processing of sold products): excluded from the Report with justification for their exclusion basf does not calculate and Report GHG emissions from processing of sold products, as these emissions were identified as not being relevant to basf . This is the result of a thorough analysis of and balancing the different relevance criteria for Scope 3 emissions sources and the five accounting and reporting principles of the GHG Protocol standards by WRI and WBCSD.

7 basf produces a large variety of intermediate goods. This application diversity cannot be tracked reasonably, and reliable figures on a yearly basis are virtually impossible to obtain. These circumstances strongly compromise the reporting principles completeness, consistency and accuracy (and feasibility), thereby not serving our business goal of reducing GHG emissions along the value chain. In addition, the WBCSD Chemical Sector Standard Guidance for Accounting & Reporting Corporate GHG. Emissions in the Chemical Sector Value Chain emphasizes that chemical companies are not required to Report Scope 3, category 10 emissions, since reliable figures are difficult to obtain, due to the diverse application and customer structure.

8 Category 13 (Downstream leased assets): Not relevant (about 5%. of Upstream leased assets according to basf expert judgement). Category 14 (Franchises): Not relevant for basf as we do not own or operate franchises. 3. Once a Scope 3 base year has been established, the year chosen No Scope 3 base year was chosen. as base year and rationale for choosing the base year Once a base year has been established, Scope 3 emissions in Not applicable. the base year Once a base year has been established, the chosen base year Not applicable. emissions recalculation policy and context for any significant emissions changes that trigger base year emissions recalculations 4.

9 3. Greenhouse gas emissions data Percentage of Metric scopes and categories Scope 3 Primary1 Secondary2. tons CO2e emissions Scope 1: Direct emissions from 18,090,000 - - - owned/controlled operations Scope 2, market-based3: Indirect emissions from the use of purchased electricity, steam, 3,182,000 - - - heating, and cooling Certificates sold to third parties 0 - - (VCUs) - Upstream Scope 3 emissions Purchased goods and services 47,753,000 52% 83% 17%. Capital goods 1,722,000 2% 92% 8%. Fuel- and energy-related activities 3,119,000 3% 92% 8%. (not included in Scope 1 or Scope 2). Upstream transportation and 2,462,000 3% 0% 100%. distribution Waste generated in operations 1,343,000 1% 100% 0%.

10 Business travel 34,000 0% 100% 0%. Employee commuting 147,000 0% 15% 85%. Upstream leased assets 169,000 0% 85% 15%. Downstream Scope 3 emissions Downstream transportation and 1,237,000 1% 100% 0%. distribution Use of sold products 5,951,000 7% 100% 0%. End-of-life treatment of sold 23,911,000 26% 74% 26%. products Investments 3,438,000 4% 100% 0%. 1. This column includes emissions data calculated using company-specific column is a sum of emissions data calculated using: A) secondary data; B) extrapolated data, and C) proxy data. See Table on page 74 of the GHG Protocol Scope 3 Standard for examples of primary and secondary data. 3 The location-based Scope 2 emissions amount to 3,362,000.