BASF SE Group at glance
BASF (Badische Anilin und Soda Fabrik, or, in English, Baden Aniline and Soda Factory) was founded in 1865 in Mannheim in Germany, and now it is one of the leading companies in chemical industry. Currently, it employs around 112 00 people and contributes to the success of its customers in almost every country around the world (BASFb, 2016). The company´s portfolio follows its corporate strategy to create value in a sustainable manner is arranged into five segments: chemicals, performance products, functional materials and solutions, agricultural solutions; and oil and gas (BASF, 2016b). In 2015, BASF (2016b) reported the sales of EUR 70 billion and income from operations of special items reaches approximately EUR …show more content…
BASF similarly as CPL has joined to IIRC´s Pilot Program (IIRC, 2013b) and company was also awarded for its best sustainability practices in 2014 by IR magazine (Irmagazine.com, 2016). Therefore we suggested this company to be an ideal example for case study to investigate how value creation and materiality is interpreted to investors and other stakeholders. BASF took initiation towards sustainability reporting early in 2007, when it issued its annual report disclosing information on economic, environmental and social performance in “integrated way”. It (BASF, 2016b; IIRC, 2013) strived to express interdependencies between financial and non-financial performance in reporting in which the managers provided the “so called value-value analysis”. Like other companies, BASF is challenged by quantifying its “capitals” and one of the solutions the BASF applies to merge financial and non-financial information is through the climate protection …show more content…
Even though the report addresses elements of IIRC framework its sustainability issues are reported in compliance with the Global Reporting Initiative (GRI), G4 framework (BASF, 2016, p. 5). In 262 pages, BASF covers both shareholders´ and stakeholders´ needs but sometimes reader needs to investigate throughout the whole report, when he demands more information about individual topics. We found this quite inconsistent, distracting and information provided to be repetitive. On the other hand, digitalization era allows to BASF to provide online a wide spectre of information.
D. Connectivity of Information
On one hand BASF provides a comprehensive report on value creation and financial and non-financial performance of its companies in individual segments (Chemicals, Performance products, Functional Materials and Solutions, Agricultural Solutions, Oil and Gas). Well-structured Integrated Report provides a good example of “integrated thinking” and allows to corporation to report on needs of society and the environment. On the other hand we can easily meet with “fragmentation” of mind when reading 262 pages long report in which several topics are repeated or distributed into several parts of report.
E.
BASF (Badische Anilin und Soda Fabrik, or, in English, Baden Aniline and Soda Factory) was founded in 1865 in Mannheim in Germany, and now it is one of the leading companies in chemical industry. Currently, it employs around 112 00 people and contributes to the success of its customers in almost every country around the world (BASFb, 2016). The company´s portfolio follows its corporate strategy to create value in a sustainable manner is arranged into five segments: chemicals, performance products, functional materials and solutions, agricultural solutions; and oil and gas (BASF, 2016b). In 2015, BASF (2016b) reported the sales of EUR 70 billion and income from operations of special items reaches approximately EUR …show more content…
BASF similarly as CPL has joined to IIRC´s Pilot Program (IIRC, 2013b) and company was also awarded for its best sustainability practices in 2014 by IR magazine (Irmagazine.com, 2016). Therefore we suggested this company to be an ideal example for case study to investigate how value creation and materiality is interpreted to investors and other stakeholders. BASF took initiation towards sustainability reporting early in 2007, when it issued its annual report disclosing information on economic, environmental and social performance in “integrated way”. It (BASF, 2016b; IIRC, 2013) strived to express interdependencies between financial and non-financial performance in reporting in which the managers provided the “so called value-value analysis”. Like other companies, BASF is challenged by quantifying its “capitals” and one of the solutions the BASF applies to merge financial and non-financial information is through the climate protection …show more content…
Even though the report addresses elements of IIRC framework its sustainability issues are reported in compliance with the Global Reporting Initiative (GRI), G4 framework (BASF, 2016, p. 5). In 262 pages, BASF covers both shareholders´ and stakeholders´ needs but sometimes reader needs to investigate throughout the whole report, when he demands more information about individual topics. We found this quite inconsistent, distracting and information provided to be repetitive. On the other hand, digitalization era allows to BASF to provide online a wide spectre of information.
D. Connectivity of Information
On one hand BASF provides a comprehensive report on value creation and financial and non-financial performance of its companies in individual segments (Chemicals, Performance products, Functional Materials and Solutions, Agricultural Solutions, Oil and Gas). Well-structured Integrated Report provides a good example of “integrated thinking” and allows to corporation to report on needs of society and the environment. On the other hand we can easily meet with “fragmentation” of mind when reading 262 pages long report in which several topics are repeated or distributed into several parts of report.
E.