BASF Scope GHG Inventory Report by benbenzhou

VIEWS: 11 PAGES: 11

									 BASF Scope 3 GHG Inventory Report


 In alignment with the GHG Protocol Corporate Value Chain
 (Scope 3) Accounting and Reporting Standard


1. Descriptive information

Descriptive information         Company response

Company name                    BASF

Description of the company      BASF is the world’s leading chemical company: The Chemical Company. Its portfolio
                                ranges from chemicals, plastics, performance products and crop protection products
                                to oil and gas. We combine economic success, social responsibility and
                                environmental protection. Through science and innovation we enable our customers
                                in almost all industries to meet the current and future needs of society. Our products
                                and system solutions contribute to conserving resources, ensuring healthy food and
                                nutrition and helping to improve the quality of life. We have summed up this
                                contribution in our corporate purpose: We create chemistry for a sustainable future.
                                BASF posted sales of about €73.5 billion in 2011 and had more than 111,000
                                employees as of the end of the year. BASF shares are traded on the stock
                                exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on
                                BASF is available on the Internet at www.basf.com.



Chosen consolidation            Equity share
approach (equity share,
operational control or
financial control)

Description of the businesses   BASF reports scope 1 and scope 2 emissions from all production sites for the entire
and operations included in      BASF Group. We do not report GHG emissions from mobile combustion, from
the company’s organizational    facilities other than production and power plants as well as from associated/affiliated
boundary (Description of the    companies over which BASF has significant influence but does not have financial
inventory boundary,             control (so-called B-companies) or from subsidiaries that are considered to be
including an                    immaterial from a BASF Group point of view (so-called C-companies). These sources
outline/description of the      emit less than 2% of BASF’s total scope 1 and 2 emissions.
organizational (scope 1)
boundaries of the reporting     Scope 3 emissions are reported for the entire BASF Group unless it is stated
company)                        otherwise. Relevant scope 3 emissions categories (> 1 million t CO2-e) 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)

                                    •   Category 4: Transportation & Distribution (Upstream)

                                    •   Category 11: Use of sold products
                                    •   Category 12: End-of-Life treatment of sold products (Disposal)

The reporting period covered    01/01/2011 -12/31/2011

A list of scope 3 activities    Category 1: Purchased Goods & Services
included in the inventory
                                Category 2: Capital Goods
                                Category 3: Fuel and Energy Related Activities (not incl. in Scope 1 or 2)
                                Category 4: Transportation & Distribution (Upstream)
                                Category 5: Waste – Generated in Operations
                                Category 6: Business Travel
                                Category 7: Employee Commuting
                                Category 8: Leased Assets (Upstream)
                                Category 9: Transportation & Distribution (Downstream)
                                Category 11: Use of sold products
                                Category 12: End-of-Life treatment of sold products (Disposal)
                                Category 15: Investments
A list of scope 3 activities
                                Category 10 (Processing of sold products): BASF produces mainly intermediate
excluded from the report with
justification for their         goods. This application diversity cannot be tracked reasonably.
exclusion                       Category 11 (Use of sold products): The emissions of the combustion of natural gas
                                traded by Wingas, a joint venture between Wintershall and the Russian company
                                OAO Gazprom is not included in Category 11. The assessment of emissions from the
                                use of products across all intermediary levels would lead to the disproportionate
                                double-counting of emissions. The emissions from the natural gas trading business
                                (BASF share) amount to 34 million tons of CO2-e (corrected by the volume supplied
                                to BASF).
                                Category 13 (Downstream leased assets): Not relevant (5% of Leased Assets
                                Upstream, BASF expert estimate)
                                Category 14 (Franchises): Not relevant for BASF as we do not own or operate
                                franchises.


Once a scope 3 base year has    No Scope 3 base year was chosen.
been established, the year
chosen as base year and
rationale for choosing the
base year
Once a base year has been       Not applicable.
established, scope 3
emissions in the base yea
Once a base year has been       Not applicable.
established, the chosen
base year emissions
recalculation policy and
context
for any significant emissions
changes that trigger
base year emissions
recalculations
2. Greenhouse gas emissions data


                                                                                     Percentage of                Primary1 Secondary2
                                                            Metric tons
Scopes and categories                                                                   scope 3
                                                              CO2e
                                                                                      emissions
Scope 1: Direct emissions from
owned/controlled operations                                   20.920.000                        -
Scope 2: Indirect emissions from the use
of purchased electricity, steam, heating,
and cooling                                                    4.879.000                        -

Certificates sold to third parties (VCUs)                       175,000

Upstream scope 3 emissions

Purchased goods and services                                  61.700.000                     41%                       71%                29%

Capital goods                                                  1.810.000                      1%                      100%                 0%

Fuel- and energy-related activities (not
                                                                                              2%
included in scope 1 or scope 2)                                2.890.000                                               87%                13%

Upstream transportation and distribution                       3.430.000                      2%                       36%                64%

Waste generated in operations                                   590.000                       0%                      100%                 0%

Business travel                                                 280.000                       0%                      100%                 0%

Employee commuting                                              220.000                       0%                       3%                 97%

                                                                          3
Upstream leased assets                                         260.000                        0%                       93%                 7%

Other                                                                -                          -                        -                  -

Downstream scope 3 emissions

Downstream transportation and
                                                                                              0%
distribution                                                    140.000                                               100%                 0%

Use of sold products                                          49.960.000                     33%                      100%                 0%

End-of-life treatment of sold products                        30.480.000                     20%                       79%                21%

                                                                          3
Investments                                                    180.000                        0%                      100%                 0%
1
 This column includes emissions data calculated using company-specific data (e.g., data received from suppliers through a GHG survey: See Table
6.3 on page 26 for examples of primary data.

2
 This column is a sum of emissions data calculated using: A) secondary data (e.g., industry average data from published sources, such as life cycle
inventory databases, input-output models, and other average statistics or published sources of emission factors); B) extrapolated data, and C) proxy
data. See Table 6.3 on page 26 for examples of secondary data.

3
Results are partly taken from the calculation of 2010 (BASF Carbon Footprint 2010)
   2. Greenhouse gas emissions data (continued)


Greenhouse gas                           N2O
                                         CO
                                        CO2 2                                     CH
                                                                                  HFCs
                                                                                  CH44
emissions
                        Metric tons             Metric tons
                                                Metrictons     Metric tons
                      Metric tons CO2
                                                  CO22e
                                                              Metric tons CH
                                                              Metric tons CH4 4         Metric tons CO e
                                                                                        Metric tons CO22e
                           CO2
                           N2O                    CO e             HFCs
Scope 1                 19,603,000
                        19,603,000
                           3,625                19,603,000
                                                19,603,000
                                                1,124,000          5,000
                                                                   5,000
                                                                     72                     105,000
                                                                                             85,000
                                                                                            105,000
Scope 2                  4,880,000
                         4,879,000
                              -                 4,880,000
                                                     -
                                                4,879,000            --                         -

Greenhouse gas                          N2O                                       HFCs
emissions
                        Metric tons             Metric tons     Metric tons
                                                                                        Metric tons CO2e
                           N2O                    CO2e            HFCs
Scope 1                    3,625                1,124,000            72                      85,000
Scope 2                      -                       -                -                         -
Greenhouse gas                          PFCs                                      SF6
emissions
                        Metric tons             Metric tons
                                                              Metric tons SF            Metric tons CO2e
                          PFCs                    CO2e
Scope 1                      0                      0               0.1                      2,000
Scope 2                      -                       -                -                         -




3. Biogenic CO2 emissions data: Not applicable for BASF
4. Description of scope 3 methodologies and data used

Information on     Description of the types and              Description of the methodologies, allocation methods,
methodologies      sources of data used to calculate         and assumptions used to calculate emissions
and data used      emissions

Upstream scope 3 emissions

                   Activity data (primary data): Quantity    We analyzed the GHG emissions of our procured raw
Category 1
                   and monetary purchasing volume of         materials and component manufacturing at BASF’s suppliers’
Purchased          the goods and services purchased in       facilities (including merchandise) by calculating the cradle-to-
goods and          the reporting year were obtained from     gate emissions, including all direct GHG emissions from raw
services           BASF      internal   business    data     material extraction, precursor manufacturing and transport,
                   management systems.                       as well as indirect emissions from energy use. To do so, we
                                                             determined the quantity of each single product purchased,
                   Emissions factors (secondary data):       and then applied emission factors for about 80 percent of the
                   Cradle-to-gate emissions factors were     purchased products (by weight). We multiplied the CO2e
                   obtained from commercially and            emissions per kilogram of each product by the respective
                   publically available data sources such    quantity of the product purchased to determine cradle-to-
                   as PlasticsEurope, ELCD, ecoinvent        gate emissions. Finally, the resulting scope 3 emissions were
                                       TM
                   and Bilan Carbone as well as from         extrapolated to 100% of the total purchasing volume in order
                   BASF’s own LCA database, which is         to account for all procured raw materials and components.
                   based mainly on primary data.             For calculating the emissions from packaging, we first
                                                             determined the types and quantities of packaging materials
                                                             such as plastic, paper board, and steel purchased in the
                                                             reporting year based on the number of containers purchased
                                                             and the fractions of materials used in each container. Then,
                                                             we calculated GHG emissions by multiplying the total
                                                             amount of various materials by their respective cradle-to gate
                                                             emission factors. Technical goods were assessed in most
                                                             instances by calculating material values based on the
                                                             monetary purchasing volume and determining material
                                                             quantities based on price. Subsequently, we calculated GHG
                                                             emissions by multiplying the total amount of the various
                                                             materials by their respective cradle-to gate emission factors.
Description of the data quality of reported emissions*       Good
Percentage of emissions calculated using data                0%
obtained from suppliers or other value chain partners

                   Activity data (primary data): Monetary   The GHG emissions that are associated with BASF’s
Category 2
                   purchasing volumes of capital goods      capital equipment purchased in 2011 were estimated based
Capital goods      purchased in the reporting year were     on the following approach: All sub-segments of BASF’s
                   obtained from BASF’s internal            global Technical Procurement related to the sourcing of
                   business data management systems.        capital equipment such as turn-key projects, machinery,
                                                            fabricated equipment etc. were analyzed based on their
                   The proportions of material costs in     monetary purchasing volume in 2011. Material values were
                   the purchase prices of technical         calculated from the monetary purchasing volume and the
                   equipment were derived from the          share of material costs in total purchasing price. The
                   German Federal Statistical Office.       proportions of material costs in the purchase prices of
                                                            pumps, apparatus, vessels and other technical equipment
                   MEPS carbon steel and world              were derived from the German Federal Statistical Office
                   stainless steel prices for 2011 were     and from in-house estimates. It was assumed that material
                   taken from www.meps.co.uk.               costs refer to the costs associated with the purchase of
                                                            steel and concrete. The share of two commonly used steel
                   Emissions     factors    (secondary      grades of the total amount of steel was investigated in a
                   date): The cradle-to-gate emissions      large-scale project. The resulting proportion of carbon steel
                   factors   were     obtained     from     to stainless steel was then used for calculating the amount
                   commercially      and      publically    of steel. The respective GHG emissions were then
                   available data sources such              calculated by multiplying the total amount of carbon and
                   ecoinvent or ELCD.                       stainless steel as well as concrete by their respective
                                                            cradle-to gate emission factors.
Description of the data quality of reported emissions*      Good
Percentage of emissions calculated using data               0%
obtained from suppliers or other value chain partners
                   Activity data (primary data): The        The GHG emissions from the extraction, production and
Category 3
                   amounts of fuel and energy               transportation of fossil fuels used for power and steam
Fuel- and          (electricity and steam) purchased in     generation in our own (power) plants were determined by
energy-related     the reporting year were obtained         multiplying the amount of purchased fuels by cradle-to-gate
activities (not    from BASF internal business data         CO2-e emission factors. The GHG emissions from the
included in        management systems.                      extraction, production and transportation of fuels consumed
scope 1 or                                                  in the generation of electricity and steam purchased by
scope 2)           Emissions factors (secondary date):      BASF in 2011 were calculated as follows: The amount of
                   The cradle-to-gate emissions factors     primary energy was determined based on the amount of
                   were obtained from the ELCD              purchased electricity and steam and the respective fuel
                   database.                                efficiencies (87% for steam generation; 37% for electricity
                                                            generation). The share of the different fuel types of the total
                   The grid related loss factor was taken   amount of primary energy was then calculated based on the
                   from the German Federal Statistical      fuel shares of electricity generation (IEA, Key World Energy
                   Office.                                  Statistics, 2010). The fuel shares were then multiplied by
                                                            the respective CO2-e emission factors to result in the
                                                            overall CO2-e emissions. Generation of electricity, steam,
                                                            heating and cooling that is consumed in a T&D system:
                                                            GHG emissions associated with losses of purchased
                                                            electricity and steam were estimated based on our Scope 2
                                                            emissions for 2011 and a grid-related loss factor of 7
                                                            percent for Germany. Losses associated with our own T&D
                                                            system due to our own generation of electricity and steam
                                                            are already accounted for in our Scope 1 emissions which
                                                            are based on fuel input. Generation of electricity and steam
                                                            that is purchased by the reporting company and sold to end
                                                            users is not applicable to BASF.
Description of the data quality of reported emissions*      Good
Percentage of emissions calculated using data               0%
obtained from suppliers or other value chain partners

                   Activity data (primary data): Amounts    For the calculation of the GHG emissions associated with
Category 4
                   and types of procured goods in 2011      the transportation of all procured products to BASF sites
Upstream           were obtained from BASF internal         three different categories of procured products were
transportation     business data management systems.        defined: (i) naphtha and industrial gases (including natural
and distribution                                            gas), (ii) raw materials, precursors and packaging, and (iii)
                                                            capital & technical goods. (i) Emissions from the
                   Emissions factors (secondary data):      transportation of naphtha and industrial gases were
                   The CO2 emission factors used and        calculated by multiplying the quantity of the product
                   the modal split for Europe were taken    purchased by an emission factor for pipeline and a
                   from    the      McKinnon      Report    transportation distance. The distance for the transportation
                   "Measuring and Managing CO2              of industrial gases was assumed to be 0.5 km since most of
                   Emissions from the Transport of          the gases are produced on-site. The distance for the
                   Chemicals in Europe".                    transportation of naphtha was assumed to be 1000 km. (ii)
                   For trucks in Asia, a higher CO2         The GHG emissions associated with the transportation of
                   emission factor than for Europe was      raw materials, precursors and packaging were calculated
                   assumed.                                 by multiplying the quantities of products procured by a
                                                            transportation distance and by an emissions factor for the
                                                            mode of transport. For all procured products in Europe, the
                                                            modal split considered is 83% road and 17% rail. In all
                                                            other regions solely transportation by truck was assumed.
                                                            The transportation distance in each region was estimated
                                                            by logistics experts. (iii) The GHG emissions that are
                                                            associated with transportation of BASF’s capital equipment
                                                            purchased in 2011 was estimated by assuming that the
                                                            transported weight of capital goods is twice as much as the
                                                            purchased steel quantity which was calculated as described
                                                            in Category 2 (scope 3 emissions from capital goods). Only
                                                            truck transportation and an average transportation distance
                                                            of 500 km were assumed.
                                                            For the calculation of the GHG emissions associated with
                                                            the transport of BASF products for which transportation
                                                            services were purchased in 2011, the respective shipments
                                                            from BASF sites to BASF customers were evaluated taking
                                                            into account regional differences. The distance of
                                                            transportation from each Verbund site and in the different
                                                            regions Europe, North America, South America and Asia as
                                                            well as the modal split (road, air, rail and barge) were
                                                            defined by in-house expert judgment. For shipments in
                                                            North America, South America and Asia, only transportation
                                                            by truck was assumed. The GHG emissions associated
                                                            with the transport of our sold products were calculated by
                                                            multiplying product quantity by the relevant distance of
                                                            transportation and by the respective CO2 emissions factor.
                                                            In addition a separate BASF study on transportation by
                                                            seagoing vessel (container) for all shipments was taken into
                                                            account. The respective upstream emissions for the entire
                                                            BASF Group were added.
                                                        *
Description of the data quality of reported emissions       Fair

Percentage of emissions calculated using data               0%
obtained from suppliers or other value chain partners

                   Activity data (primary data): The        The GHG emissions from on-site waste incineration are
Category 5
                   amount of solid waste and waste          accounted for in our Scope 1 emissions. The GHG
Waste              water generated during production        emissions from off-site waste incineration and on- and off-
generated in       from all BASF production sites is        site landfill were calculated as follows: From a survey of a
operations         collected and monitored with our in-     variety of different chemical products, the average carbon
                   house Responsible Care database.         content of a chemical product was determined. Multiplying
                   The      data    collection    method    the amount of waste with this factor and assuming that all of
                   differentiates between on-site and       the carbon is converted into CO2 during combustion results
                   off-site disposal as well as between     in the CO2 emissions from waste incineration. The GHG
                   the     disposal    methods     (waste   emissions from landfill were calculated by multiplying the
                   incineration, landfill and waste water   amount of landfilled waste with the GHG emission factor for
                   treatment).                              landfilled plastic waste. Plastic waste was chosen because
                                                            it is a common inert chemical product showing average
                   Emissions factors (secondary data):      decomposition behavior for a carbon containing chemical in
                   The emissions factors were obtained      terms of greenhouse gases.
                   from the ELCD database.
                                                            The emissions of BASF-operated wastewater plants are
                                                            accounted for in our Scope 1 or Scope 2 emissions,
                                                            respectively. The CO2 emissions from non-BASF operated
                                                            wastewater treatment plants were calculated as follows
                                                            based on a TOC (Total Organic Carbon) material balance.
                                                            It is assumed that 30% of the influent organic carbon load is
                                                            insoluble and inert as well as the non-biodegradable TOC in
                                                            the effluent. It is also assumed that the 25% of the
                                                            remaining biotreatable TOC is converted into biosludge
                                                            during biotreatment. The residual TOC, which is about 50%
                                                            of the total influent TOC, was converted into CO2. The CO2
                                                            emissions were calculated from the residual TOC with a
                                                            conversion factor of CO2/TOC=3.79.

Description of the data quality of reported emissions*      Good

Percentage of emissions calculated using data               0%
obtained from suppliers or other value chain partners

                   Activity data (primary data): Miles      The GHG emissions associated with the transportation of
Category 6
                   and kilometers per means of              all BASF Group employees for business-related activities
Business travel    transportation, travelled by BASF        were calculated as follows: a) GHG emissions from
                   employees in the reporting year were     business travel by air: Miles, which are collected through
                   collected by external partners such      external partners such as travel agencies and monitored by
                   as travel agencies and provided to       BASF’s Travel Management, were converted to CO2
                   BASF’s Travel Management.                equivalents using conversion factors for short-haul,
                                                            medium-haul and long-haul flights b) GHG emissions from
                   Emissions factors (primary and           business travel by train: Rail miles that are collected
                   secondary data): CO2 conversion          through external partners such as Deutsche Bahn or travel
                   factors for short-haul, medium-haul      agencies and monitored by our Travel Management were
                   and long-haul flights were taken from    converted into CO2 emissions, using an average CO2
                   www.atmosfair.de. CO2 conversion         conversion factor for long and short distance travel by train
                   factors for short and long distance      (c) GHG emissions from business travel by car: Driven
                   travel by train were taken from          kilometers that are collected by car rental companies and
                   TREMOD 5.04, German Federal              monitored by BASF’s Travel Management were converted
                   Environment Agency (UBA), 2008.          into CO2 emissions using specific CO2 conversion factors
                                                            provided by the car rental companies.
                   CO2 conversion factors for business
                   travel by rental car were obtained
                   from the car rental companies.
Description of the data quality of reported emissions       Good

Percentage of emissions calculated using data               100%
obtained from suppliers or other value chain partners

                   Activity data (primary data): Number     CO2 emissions from employee commuting were calculated
Category 7
                   of employees per region as well as       based on the results of a representative poll conducted
Employee           distance and mode of transportation      among BASF SE employees in 2009 (4989 out of 33,812
commuting          for a selected group of employees in     employees). Employees were asked about the distance
                   Germany, who participated in a poll      travelled between their homes and workplaces and their
                   in 2009.                                 means of transportation. CO2 emissions were calculated by
                                                            multiplying the travelled distance (220 days per year back
                   Emission factors (secondary data):       and forth) with the respective CO2 emissions factor
                   The CO2 emissions factors used           accounting for the different means of transportation. The
                   were taken from Mobitool or              resulting GHG emissions were subsequently extrapolated
                   ecoinvent V2.1, respectively.            to all BASF Group employees in Europe. For the other
                                                            regions (North America, South America and Asia) it was
                                                            assumed that all employees travel by car 238 days per
                                                            year. Based on a distance of 26 km (one-way) in North
                                                            America and 20 km (one-way) in the other regions the
                                                            emissions were calculated by multiplying the distance with
                                                            the number of employees, number of working days and an
                                                            average emission factor for cars per km.
Description of the data quality of reported emissions*      Fair

Percentage of emissions calculated using data               3%
obtained from suppliers or other value chain partners

                   Activity data (primary data)             GHG emissions from leased assets were calculated for
Category 8
                   1. Leased cars: Vehicles miles as        three different categories. 1) Leased cars: GHG emissions
Upstream               defined in the leasing contracts     from leased cars by BASF SE were calculated by
leased assets          for BASF SE employees for 2011.      multiplying the vehicle miles travelled, which were derived
                   2. Leased office and storage space:      from the respective leasing contracts, by the relevant CO2
                       Leased office and storage space      emission factors. Since only the leasing contracts of BASF
                       for the reporting year was           SE were evaluated, the resulting GHG emissions were
                       obtained from BASF internal          subsequently extrapolated based on the number of
                       business      data   management      employees to account for the entire BASF Group. 2)
                       systems.                             Leased offices and storage space: The GHG emissions of
                    3. Leased         equipment:     The    leased offices and storage space were assessed based on
                        monetary purchasing volume for      the leased space (in square meters) and the annual energy
                        leased equipment in 2011 was        consumption per square meter for office buildings or
                        derived from BASF internal          storage space, respectively. No distinction was made
                        business     data   management      between offices and storage space due to a lack of data. 3)
                        systems.                            Leased Equipment: The GHG emissions from leased
                   Emissions factors (secondary data):      equipment such as hardware (i.e. computers or printers)
                   1. The CO2 emission factors used         and software were assessed based on their monetary
                       are manufacturer’s data and          purchasing volume in 2011 and CO2 emission factors for
                       differentiate between fuel type      hardware. Leased services were also evaluated based on
                       (diesel/gasoline) as well as cubic   their monetary purchasing volume using a service-specific
                       capacity.                            GHG emission factor per Euro spent.
                   2. The energy consumption per
                       square meter for office buildings
                       in Europe was taken from
                       www.Ifu.bayern.de. The same
                       energy       consumption      was
                       assumed for buildings in South
                       America. For North America the
                       energy consumption per square
                       meter for office buildings was
                       taken from a study of the
                       WBCSD. The same energy
                       consumption per square meter
                       was also assumed for buildings in
                       Asia. CO2 emissions factors per
                       MWh were taken from the
                       International   Energy   Agency
                       (IEA, 2010)
                    3. Leased Equipment: The emission
                       factors for hardware were taken
                       from ADEME Bilan Carbon 5.0
                       (France).
Description of the data quality of reported emissions*     Good
Percentage of emissions calculated using data              0%
obtained from suppliers or other value chain partners

4. Description of scope 3 methodologies and data used (continued)

Information on     Description of the types and            Description of the methodologies, allocation methods,
methodologies      sources of data used to calculate       and assumptions used to calculate emissions
and data used      emissions

Downstream scope 3 emissions
                                                           For the calculation of the GHG emissions associated with
Category 9
                   Activity data (primary data): Amounts   the transport of BASF products sold in 2011 (for which
Downstream         and types of sold products in 2011      BASF did not pay), the respective shipments from BASF
transportation     were obtained from BASF internal        sites to BASF customers were evaluated taking into
and distribution   business data management systems.       account regional differences. The distance of transportation
                                                           from each Verbund site and in the different regions Europe,
                                                           North America, South America and Asia as well as the
                   Emissions factors (secondary data):     modal split (road, air, rail and barge) was defined by
                   The CO2 emission factors used and       internal expert judgment. For shipments in North America,
                   the modal split for Europe were taken   South America and Asia, only transportation by truck was
                   from    the      McKinnon      Report   assumed. The GHG emissions associated with the
                   "Measuring and Managing CO2             transport of our sold products were calculated by
                   Emissions from the Transport of         multiplying product quantity by the relevant distance of
                   Chemicals in Europe".                   transportation and by the respective CO2 emissions factor.
                   For trucks in Asia, a higher CO2        In addition, a separate study on transportation by seagoing
                   emission factor than for Europe was     vessel (container) for all shipments was taken into account.
                   assumed.                                The respective downstream emissions for the entire BASF
                                                           Group were added.
                                                           The transportation of the products from our oil & gas
                                                           segment Wintershall was not considered since they are
                                                           mainly transported via pipeline. The majority of the
                                                           associated GHG emissions are already accounted for in our
                                                           Scope 1 & 2 emissions since the compressor stations
                                                           belong to the BASF Group.

Description of the data quality of reported emissions*     Good
Percentage of emissions calculated using data              0%
obtained from suppliers or other value chain partners

                   Activity data (primary data): Amounts   Chemical products vary strongly in their GHG emissions
Category 11
                   and types of sold products in 2011      during their use phase. The majority of chemical products
Use of sold        were obtained from BASF internal        does neither cause nor prevent GHG emissions, e.g. food
products           business data management systems.       and feed additives like vitamins or pigments for paints and
                                                           dyes. For the calculation of the GHG emissions associated
                                                           with the use of sold BASF products we only considered the
                   Emissions factors (secondary data):     direct use-phase emissions of sold products over their
                   The CO2 emission factors for crude       expected lifetime, i.e. the emissions that occur from the use
                   oil and natural gas were taken from      of fuels and feedstocks and GHGs and products that
                   IPCC.                                    contain or form GHGs that are emitted during use.
                                                            1) Oil & Gas: In 2011 our subsidiary Wintershall produced
                   GWPs were taken from the Second          3.6 million metric tons of crude oil and 14.62 billion cubic
                   Assessment Report, IPCC, 1995. In        meters of natural gas. It was assumed that 100% of the oil
                   the case of HFC245-fa and HFC-           and gas are combusted for heating purposes. The volume
                   365mfc the respective GWPs were          of sold crude oil and natural gas, respectively, was
                   taken from the Third Assessment          multiplied by the CO2 emission factor for crude oil and
                   Report, IPCC, 2001.                      natural gas, respectively, to calculate the GHG emissions
                                                            associated with the thermal conversion of the produced oil
                                                            and natural gas.
                                                            2) GHG emissions from products sold in 2011 that form
                                                            greenhouse gases: Nitrogenous fertilizers release nitrous
                                                            oxide N2O to the atmosphere as a result of microbial action
                                                            in the soil. The associated GHG emissions were calculated
                                                            based on the amount of N-containing fertilizers sold in
                                                            2011, the nitrogen content and on the fact that 1% (in the
                                                            presence of a nitrification inhibitor only 0.5%) of the
                                                            nitrogen contained in the fertilizer is converted into N2O.
                                                            3) GHG emissions from products sold in 2011 that contain
                                                            greenhouse gases such as dry ice, CO2 as gas for the
                                                            beverage industry, HFCs as foaming agents for the
                                                            production of polyurethane foams and urea: GHG
                                                            emissions from dry ice and CO2 liquid sold to the beverage
                                                            industry were considered based on the sold quantity. GHG
                                                            emissions from HFCs were calculated based on the
                                                            procured HFC-quantities and the loss rate of HFCs in the
                                                            polyurethane-applications during their use phase (35 % for
                                                            spray foam and 95% for integral foam). CO2 from the use
                                                            of urea (as fertilizer and solution for diesel truck engines)
                                                            was calculated based on the sold product quantity and the
                                                            contained CO2 amount.
Description of the data quality of reported emissions*      Good
Percentage of emissions calculated using data               0%
obtained from suppliers or other value chain partners

                   Activity data (primary data): Quantity   GHG emissions from the disposal of all BASF products
Category 12
                   of the products (raw materials, pre-     (except the products that are already disposed of during
End-of-life        products as well as packaging)           their use phase and therefore accounted for in Category 11)
treatment of       purchased in 2011 and percentage of      manufactured in 2011 were calculated presuming that all
sold products      BASF’s sales in Europe and in the        BASF products are disposed of at the end of their lives. It
                   other regions was obtained from          was assumed that the products would be used and
                   BASF      internal   business    data    disposed of in the countries to which BASF sold them.
                   management systems.                      Incineration with energy recovery is predominant in Europe,
                                                            landfill in the rest of the world. Therefore both means of
                                                            disposal were taken into account corresponding to BASF’s
                   Emission factors (secondary data):       sales in Europe and the rest of the world. The amount of
                   The emissions factor for landfill was    CO2 a compound emits when incinerated is determined by
                   obtained from the ELCD database.         its C-content. As the pre-products purchased are known
                                                            from their amount and C-content, the same range of
                                                            chemicals as in Category 1 was considered for end-of-life
                                                            options. More than 60% of the pre-products were calculated
                                                            to release their carbon through incineration directly.
                                                            Following this approach and multiplying CO2 emissions per
                                                            kg by the actual amount of product procured, CO2
                                                            emissions for all products incinerated are calculated. As
                                                            energy recovery is mostly implemented in European waste
                                                            incineration plants, a credit for electricity was taken into
                                                            account. Per MJ of waste incinerated an average amount of
                                                            0.14 MJ of electricity is generated. Thus a credit was given
                                                            for this electricity, i.e. the CO2 implied with its generation in
                                                            a representative electricity mix for Germany. For assessing
                                                            the energy content of these products, the heating value
                                                            methodology was used. For the fraction of C-containing
                                                                              products disposed of in landfills, an average CO2/CH4-
                                                                              release is assumed, related to 1 kg plastic waste landfilled.
                                                                              Again, this factor was multiplied by the landfill fraction of the
                                                                              amount of product procured to obtain the CO2-e emissions
                                                                              of products land filled.
                                                                         *
Description of the data quality of reported emissions
                                                                              Good
Percentage of emissions calculated using data
                                                                              0%
obtained from suppliers or other value chain partners


                          Activity data (primary data): Scope 1               GHG emissions from associated/affiliated companies over
Category 15
                          and scope 2 emissions of the                        which BASF has significant influence but does not have
Investments               associated/affiliated companies and                 financial control (so-called B-companies) and/or from
                          fixed    asset     investments   were               subsidiaries that are considered to be immaterial from a
                          obtained     from     the   respective              BASF Group point of view (so-called C-companies) are not
                          companies/investments upon inquiry.                 included in BASF’s scope 1 or scope 2 emissions. In
                                                                              BASF’s       consolidated     financial    statements    the
                                                                              associated/affiliated companies are accounted for using the
                                                                              equity method. However, the GHG emissions from these
                                                                              companies are determined on a regular basis by inquiring
                                                                              these data from the respective companies. GHG emissions
                                                                              were calculated based on BASF’s equity share in these
                                                                              companies. GHG emissions associated with fixed asset
                                                                              investments where BASF has only a minor share and
                                                                              neither financial nor operational control were determined for
                                                                              the largest investments (BASF share between 5 and 20%)
                                                                              based on primary emissions data and the BASF share.
                                                                         *
Description of the data quality of reported emissions
                                                                              Good
Percentage of emissions calculated using data
                                                                              0%
obtained from suppliers or other value chain partners

* Subjective evaluation of the data quality of the direct emissions data, activity data, and emission factors. The type of evaluation according to the
criteria (Technology, Time, Geography, Completeness, and Reliability) is based on the new GHG Protocol Scope 3 standard (page 77).

								
To top