BASF
We create chemistry

20 BASF Report

Published on February 27, 2026

Statement of the Chairman of the Board of Executive Directors

Dear Shareholders,

Looking back, 2025 was a year of mixed emotions for me. We made great progress in implementing our “Winning Ways” strategy. Our efforts have contributed to creating a more focused and faster BASF. We achieved considerable milestones in streamlining our core businesses while swiftly advancing Coatings and Agricultural Solutions on their value-creation journey.

At our new site in Zhanjiang, China, the successful startup of the core of the Verbund – on time and below budget – stands as a testament to BASF’s operational excellence. Similarly, we continue to progress with our one-billion-US-dollar MDI expansion project in Geismar, Louisiana. In Ludwigshafen, our teams have exceeded my expectations in working to restore competitiveness and lay the groundwork for a profitable future for BASF in Europe.

> We have the right
> playbook to tackle short-term challenges, and, in the
> long term, we have the right
> strategy to shape a future-proof BASF.

At the same time, however, I must acknowledge that our strategic and operational measures have not yet fully translated into a tangible improvement in earnings. After a strong start in 2025, we faced increasing market volatility, with initial market tailwinds turning into geopolitical headwinds. In this difficult environment, our standalone businesses Agricultural Solutions as well as Environmental Catalyst and Metal Solutions stood out by delivering superior earnings contributions, leveraging their full strength.

Overall, BASF Group’s EBITDA before special items came in slightly below our most recent outlook range and analyst consensus. This was due to lower margins, particularly in the upstream businesses, as well as negative currency effects, mainly from a weak U.S. dollar. At the same time, free cash flow considerably exceeded analysts’ expectations and our own forecast. This provides a foundation for our dividend proposal of €2.25 per share for 2025. From today’s perspective, we do not expect a meaningful market upswing or a significant easing of geopolitical tensions in the near term. Our outlook for 2026 reflects this. This means that we are putting self-help at the heart of our actions and will be keeping a close eye on costs and our cash flow.

I nevertheless remain confident. We have the right playbook to tackle short-term challenges, and, in the long term, we have the right strategy to shape a future-proof BASF. What matters now is moving forward with courage, guided by our Winning Behaviors. BASF is a strong team and we have the capabilities to succeed – even under challenging conditions. That’s my source of confidence.

Dr. Markus Kamieth
Chairman of the Board of Executive Directors of BASF SE

BASF Report 2025
Statement of the Chairman of the Board of Executive Directors

Letter from the Chairman of the Supervisory Board

Dear Shareholders,

BASF performed well in difficult geopolitical, regulatory and economic conditions in the 2025 business year. The chemical industry is facing major challenges worldwide, particularly in Europe. BASF is focused on further improving its competitiveness in the various markets and on implementing its “Winning Ways” strategy. In these times, extra responsibilities are also placed upon the Supervisory Board.

We have made ongoing and thorough use of detailed reports to monitor the Board of Executive Directors. We advised the Board of Executive Directors on important issues of corporate governance and strategic development. The Board of Executive Directors also informed the Supervisory Board of matters of particular importance outside of the six meetings. In addition, I was in regular personal contact with the Chairman of the Board of Executive Directors. The four committees of the Supervisory Board prepared the meetings and enabled in-depth examination of important topics within the body as a whole. The Audit Committee, whose chairwoman was also in close contact with the Chief Financial Officer and the auditor, bore special responsibility in this regard. Cooperation within the committees and with the Board of Executive Directors has remained transparent, trusting and constructive, characterized by the common pursuit of the best solutions to ensure the success of BASF.

The Supervisory Board discussed the business development and the measures taken by the Board of Executive Directors in detail. At each meeting, we discussed the progress of the major investment projects and the ongoing portfolio measures, including important investments at the Ludwigshafen site, the progress of construction and the highly successful startup of the new Verbund site in Zhanjiang in southern China, as well as the sale of the global coatings business. In relation to the standalone businesses, we discussed the respective progress in strategy implementation, in particular the planned partial IPO of the Agricultural Solutions division. In addition, the continued focus of BASF’s portfolio was intensively discussed. For the core businesses, this means above all growth in Asia and restructuring in Europe. The Supervisory Board is convinced that this will require rapid and far-reaching political reforms in Europe and Germany in order to bring the targets and measures associated with green transformation into line with the growth and prosperity of national economies.

The Supervisory Board believes that BASF is on the right track – both in the short term in a difficult environment and in the long term with a view to greater focus and speed, as well as market-driven green transformation. This assessment is also based on discussions I held with institutional investors last year. The Supervisory Board expressly supports BASF’s chosen operational and strategic direction. Two highly experienced leaders, Dr. Mary Kurian and Dr. Livio Tedeschi, will join the Board of Executive Directors in May 2026 and will contribute their expertise to the further development of BASF. Michael Heinz will retire as planned at the end of the Annual Shareholders’ Meeting – after 42 successful and meritorious years, including 15 years on the Board of Executive Directors.

On behalf of the Supervisory Board, I wish to thank the Board of Executive Directors for its outstanding work in an extraordinarily challenging environment. This thanks also extends to all employees around the world who are making a decisive contribution to BASF’s successful future with their drive, great commitment and resilience.

Dr. Kurt Bock
Chairman of the Supervisory Board

The report of the Supervisory Board can be found on pages 437 to 445.

BASF Report 2025
Letter from the Chairman of the Supervisory Board

BASF Report 2025
Contents | 4

2025 BASF Group Annual Report

At a Glance 5

1 Combined Management's Report 7

Overview – About This Report and the Combined Management's Report 8

1.1 Fundamentals of the Group 11
1.2 BASF Group's Business Year 43
1.3 Forecast 81
1.4 Disclosures on BASF SE in Accordance with the German Commercial Code (HGB) 106
1.5 Corporate Governance 114
1.6 (Consolidated) Sustainability Statement 145

2 Consolidated Financial Statements 301

Statement of Income 302
Statement of Income and Expense Recognized in Equity 303
Balance Sheet 304
Statement of Cash Flows 306
Statement of Changes in Equity 307
Notes 309

3 Further Information 421

External Audit 422
Statement by the Board of Executive Directors 423
Independent Auditor's Report 424
Assurance Report in Relation to the Combined Sustainability Statement 433
Report of the Supervisory Board 437
Selected Key Figures Excluding Precious and Base Metals 446
Glossary 447
Trademarks 450

Experience the entire report in an interactive format online:

» Our 2025 annual report was also published online on February 27, 2026.

Key to symbols used in the report:

» You can find more information online. This information is voluntary and was not audited by the auditor.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

2025 – at a glance

Our integrated reporting combines financial and sustainability reporting. We inform you how we are developing as a company and how we create value for our stakeholders.

€59.7	€6.6	5.8%
billion	billion
Sales revenue^{a}	EBITDA before special items^{a}	ROCE^{a}
2024: €61.4 billion	2024: €7.2 billion	2024: 5.1%
€5.6	€1.3	€4.0
billion	billion	billion
Cash flows from operating activities	Free cash flow	Capital expenditures (capex)
2024: €6.9 billion	2024: €0.7 billion	2024: €6.0 billion

EBITDA before special items by segment^a,b and Other

a With the planned divestiture of the automotive OEM coatings, automotive refinish coatings and surface treatment business units, sales and earnings from these activities will be reported as discontinued operations and will no longer be part of the sales and EBIT(DA) before special items of the BASF Group and of Surface Technologies. The prior-year figures have been restated accordingly (for more information on this planned transaction, see page 39).
b Since January 1, 2025, the chemical and refining catalysts business has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the former Catalysts division in the Surface Technologies segment. The prior-year figures have been restated accordingly.

BASF Report 2025

2025 – At a Glance | 5

At a Glance

Combined Management's Report

million metric tons of $\mathrm{CO}_{2}$ equivalents

a Scope 1 and Scope 2 (excluding the sale of energy to third parties)

€2.0

billion

Research and

development expenses

2024: €2.0 billion

108,251

Employees at year-end

2024: 111,822

€12.3

billion

Personnel expenses

2024: €11.2 billion

b This item no longer includes the amounts reported in discontinued operations. The prior-year figures have been restated accordingly (for more information, see page 39).

BASF Report 2025

2025 - At a Glance

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

1 BASF Report 2025

Combined Management's Report

Overview – About This Report and the Combined Management's Report 8

1.1 Fundamentals of the Group 11

BASF Group 11
Sites and Verbund 11
Strategy 15
Our Strategy 15
Our Strategic Levers 17
How We Create Value 22
Business Models of the Segments 25
Our Steering Concept 29
Our Targets and Target Achievement 2025 32
Material Investments and Portfolio Measures 36
Innovation 41

1.2 BASF Group's Business Year 43

Economic Environment 43
Results of Operations 48
Net Assets 54
Financial Position 56
Actual Development Compared with Outlook for 2025 62
Business Review by Segment 64
Other 80

1.3 Forecast 81

Economic Environment in 2026 81
Outlook 2026 85
Opportunities and Risks 90

1.4 Disclosures on BASF SE in Accordance with the German Commercial Code (HGB) 106

Corporate Structure 106
Results of Operations 107
Net Assets and Financial Position 109
Forecast, Opportunities and Risks 111
Nonfinancial Disclosures of BASF SE 112

1.5 Corporate Governance 114

Corporate Governance Report 114
Disclosures Required by Takeover Law 137
Management and Supervisory Boards 140
Declaration of Conformity Pursuant to Section 161 AktG 143
Declaration of Corporate Governance 144

1.6 (Consolidated) Sustainability Statement 145

ESRS Index 145
General Disclosures 147
Double Materiality Assessment 163

Environment 172

E1 Climate Change 172
E2 Pollution Prevention 199
E3 Water 213
E4 Biodiversity and Ecosystems 221
E5 Resource Use and Circular Economy 232
EU Taxonomy 241

Social 248

S1 Own Workforce 248
S2 Workers in the Value Chain 264
S3 Affected Communities 275

Governance 288

G1 Business Conduct 288

Appendix to the (Consolidated) Sustainability Statement 297

Data Points from Other EU Legislation 297

Key to symbols used in the Management's Report:

ESRS

This content fulfills the Disclosure Requirements of the European Sustainability Reporting Standards (ESRS).

You can find more information online. This information is voluntary and was not audited by the auditor.

() Critically read

The content of this section is voluntary, unaudited information, which was critically read by the auditor.

[] Limited assurance

The content of this section is not part of the statutory audit but has undergone a separate limited assurance by our auditor. If headings are marked accordingly, this applies to the entire following section.

BASF Report 2025
Combined Management's Report

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Overview – About This Report and the Combined Management’s Report

Content and Structure

This integrated BASF Report 2025 documents BASF’s economic, environmental and social performance in 2025. Published each year in German and English, the BASF annual report shows how we as a company create value for our stakeholders and how sustainability contributes to BASF’s long-term success as an integral part of our corporate purpose and our strategy. The annual report presents the major financial and sustainability-related information necessary to comprehensively evaluate the company’s performance. We select the report’s topics based on the principles of completeness, balance, sustainability context, stakeholder inclusion and double materiality with respect to sustainability-related information (see Double Materiality Assessment from page 163 onward). In addition to this report, we publish further information online. Relevant links can be found within each chapter.

The Management’s Reports for the BASF Group and BASF SE have been combined where possible and not otherwise stated in this annual report pursuant to GAS 20.22. Information relating exclusively to the parent company (BASF SE) is dealt with in the chapter Disclosures on BASF SE in Accordance with the German Commercial Code (HGB). The reporting covers the period from January 1, 2025, up to and including December 31, 2025 and presents, unless otherwise stated, the results of operations, financial position and net assets of the BASF Group with its significant opportunities and risks (for more information on the results of operations, net assets and financial position, see page 48 onward). The information on the BASF Group in the aforementioned sections complies with the requirements of the IFRS® Accounting Standards as adopted by the European Union, and, where applicable, the German Commercial Code (HGB). Internal control mechanisms ensure the reliability of the information presented in this report.

In the 2025 business year, BASF reports pursuant to the CSR Directive Implementation Act (CSR-RUG) given that the Corporate Sustainability Reporting Directive (CSRD) has not yet been transposed into German law. The Combined Management’s Report of the BASF Group and BASF SE contains a Combined Sustainability Statement prepared in accordance with the requirements of sections 289b to 289e, 315b and 315c HGB. As an acknowledged reporting framework in accordance with section 289d, we are voluntarily applying the European Sustainability Reporting Standards (ESRS), published as a delegated act in the Official Journal of the EU on December 22, 2023, in full – due to their importance as a reporting standard adopted by the European Commission – and are reporting in accordance with Article 8 of Regulation (EU) 2020/852. The Combined Sustainability Statement includes the (Consolidated) Sustainability Statement as well as the Nonfinancial Statement (NFS) of BASF SE as the parent company of the BASF Group. An incorporation by reference option within the (Consolidated) Sustainability Statement was selected in the Management’s Report for the NFS to be issued in the reporting year. The table on page 112 onward shows the relevant nonfinancial key figures of BASF SE. All disclosures on strategy, due diligence, targets, described processes and key figures contained in the statements in the Combined Management’s Report including the (Consolidated) Sustainability Statement apply to the BASF Group including BASF SE. No significant deviations were identified for BASF SE.

Material topics form the focal points of our reporting and define the limits of this report. In identifying, prioritizing and validating material sustainability-related topics, we are guided by the principle of double materiality, taking into consideration financial materiality and impact materiality (see page 163 onward). Information on the proportion of the Group’s taxonomy-eligible and our Group-wide taxonomy-aligned sales revenue, capital expenditures (including acquisitions and excluding goodwill in accordance with the

BASF Report 2025

Combined Management's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

EU taxonomy) and operating expenditures for the 2025 business year can be found under EU Taxonomy from page 241 onward.

The 2025 BASF Online Report can be found at basf.com/report.
The ESRS index can be found online at basf.com/esrs_index.

Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

BASF supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We refer to the TCFD-recommended disclosures in various places throughout this report.

Disclosures required by takeover law in accordance with sections 289a and 315a HGB

The disclosures required by takeover law in accordance with sections 289a and 315a of the German Commercial Code (HGB) can be found in the Corporate Governance section from page 137 onward. They form part of the Combined Management's Report, which is audited as part of the annual audit.

Declaration of Corporate Governance in accordance with sections 289f and 315d HGB

The Combined Declarations of Corporate Governance of BASF SE and the BASF Group, pursuant to sections 289f HGB and 315d HGB (see page 144), comprise the chapters Corporate Governance Report (see page 114) including the description of the diversity concept for the composition of the Board of Executive Directors and the Supervisory Board, G1 Business Conduct (see page 288) and Declaration of Conformity Pursuant to Section 161 AktG (see page 143). Pursuant to section 317(2) sentence 6 HGB, the auditor checked that the disclosures according to section 289f HGB and section 315d HGB were made.

Compensation Report

The Compensation Report in accordance with section 162 of the German Stock Corporation Act (AktG) is publicly available on the BASF website together with the assurance statement of the substantive and formal audit issued by the auditor.

The Compensation Report will be published at basf.com/compensationreport.

Data and scope of consolidation

All information and bases for calculation in this report are founded on national and international standards for financial and sustainability reporting. The data and information for the reporting period were sourced from the expert units responsible using representative methods. More information on our sustainability metrics and collection of the underlying data can be found under General Disclosures in the (Consolidated) Sustainability Statement from page 149 onward. Due to rounding, individual figures may not add up exactly to the totals shown and percentages may not correspond exactly to the figures shown.

BASF Group's scope of consolidation for its financial reporting comprises BASF SE, with its headquarters in Ludwigshafen, Germany, and all of its fully consolidated subsidiaries and proportionally consolidated joint operations. Shares in joint ventures and associated companies are accounted for, if material, using the equity method in the BASF Group Consolidated Financial Statements and are thus not included in the scope of consolidation. More information on the scope of consolidation for financial reporting can be found in the Notes to the Consolidated Financial Statements from page 311 onward.

BASF Report 2025
Combined Management's Report | 9

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The consolidation principles of sustainability reporting require application of the concept of operational control with respect to individual disclosures relating to ESRS standards E1 (Climate Change), E2 (Pollution)¹ and E4 (Biodiversity and Ecosystems). Operational control applies to all fully consolidated subsidiaries included in the financial reporting at a minimum. Other companies under operational control are also covered by these Disclosure Requirements, provided the companies are significant for reporting purposes. All relevant data corresponds with the reporting period for the Consolidated Financial Statements. More information on the scope of consolidation for sustainability reporting can be found under General Disclosures in the (Consolidated) Sustainability Statement from page 148 onward.

Forward-looking statements and forecasts

This report contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks as well as uncertainties; and they are based on assumptions that may not prove to be accurate. Such risk factors include, in particular, those discussed in Opportunities and Risks on pages 90 to 105. We do not assume any obligation to update the forward-looking statements contained in this report above and beyond the legal requirements.

¹ Name of chapter in BASF Report 2025: Pollution Prevention

BASF Report 2025

Combined Management's Report | 10

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

1.1 Fundamentals of the Group

BASF Group

At BASF, we create chemistry for a sustainable future. Our ambition is to be the preferred chemical company to enable our customers' green transformation.¹ We combine economic success with environmental protection and societal responsibility. Our portfolio is structured into core businesses and standalone businesses.

Sites and Verbund

In the 2025 business year, BASF had 108,251 employees and operated 234 production sites in 93 countries worldwide. Our aim is to serve local markets through local production. In addition to Ludwigshafen, the seven Verbund sites include the plants in Antwerp, Belgium; Freeport, Texas; Geismar, Louisiana; Kuantan, Malaysia; Nanjing, China; and Zhanjiang, China, where additional plants were commissioned and the first products from the Verbund were manufactured over the course of 2025, and commissioning of the steam cracker commenced at the end of December 2025. As planned, cracker products in accordance with specifications were made available to the processing plants in the first days of January 2026. The Verbund concept is one of our key strengths: It enables intelligent linking and steering of our plants and ensures resource-efficient, CO₂-optimized and reliably managed production. From basic products to customized solutions, the core businesses are deeply integrated into long, multilevel value chains.

> For more information on the Verbund concept, see basf.com/en/verbund

Organization of the BASF Group

As of December 31, 2025, the BASF Group's business comprised eleven operating divisions, which are grouped into six segments:

Chemicals: Petrochemicals, Intermediates
Materials: Performance Materials, Monomers
Industrial Solutions: Dispersions & Resins, Performance Chemicals
Nutrition & Care: Care Chemicals, Nutrition & Health
Surface Technologies: Battery Materials, Environmental Catalyst and Metal Solutions (ECMS)
Agricultural Solutions (the operating division shares the same name)

Until October 1, 2025, the Surface Technologies segment also included the Coatings division, which is no longer included in the BASF Group's segment reporting due to the following two transactions:

On October 10, 2025, BASF and Carlyle, Washington D.C., announced the signing of a binding transaction agreement relating to BASF's automotive OEM coatings, automotive refinish coatings and surface treatment business units ("coatings"). Subject to approval from the relevant regulatory bodies, the transaction is expected to close in the second quarter of 2026. Owing to the planned divestiture, the affected business units are reported as discontinued operations in accordance with IFRS 5 as of September 30, 2025. From this date, the sales and earnings of the automotive OEM coatings, automotive refinish coatings and surface treatment business units are no longer part of the sales and EBIT(DA) before special items of the BASF Group and the Surface Technologies segment.

¹ The following understanding underpins all references to green transformation in this report: To enable our customers' green transformation, BASF systematically develops and offers solutions that minimize negative impacts on the environment and society while maximizing positive results. This includes our efforts to reduce CO₂ emissions, conserve resources and use renewable energy and renewable raw materials. In line with the three dimensions of sustainable development, we place ecological and economic balance as well as social responsibility at the forefront of our actions.

BASF Report 2025
Fundamentals of the Group | 11

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Retroactively to January 1, 2025, and until the transaction closes, the income after taxes of these business units is presented in the income after taxes of BASF Group as a separate item (income after taxes from discontinued operations). The 2024 figures have been restated accordingly.

On October 1, 2025, the sale of BASF's Brazilian decorative paints business to Sherwin-Williams, Cleveland, Ohio, was completed following approval by the relevant competition authority. The decorative paints business was not affected by the aforementioned retroactive restatement and was the only business reported under Coatings in 2025.

> For more information on material investments, see page 36 onward

BASF Group segments in 2025

Core businesses

Chemicals	Materials	Industrial Solutions	Nutrition & Care
The Chemicals segment supplies both external customers and BASF's other segments with basic chemicals and intermediates.	In the Materials segment, we produce advanced plastics and precursors for processing industries.	The Industrial Solutions segment develops and markets ingredients and additives for industrial applications.	The Nutrition & Care segment produces ingredients for consumer applications such as human nutrition and cleaning agents.
- Share of sales: 16.9%
- R&D expenses: €87 million
- Investments including acquisitions*: €2,108 million	- Share of sales: 21.4%
- R&D expenses: €184 million
- Investments including acquisitions*: €940 million	- Share of sales: 14.4%
- R&D expenses: €187 million
- Investments including acquisitions*: €391 million	- Share of sales: 10.9%
- R&D expenses: €137 million
- Investments including acquisitions*: €662 million

Standalone businesses

Surface Technologies

The Surface Technologies segment produces chemical solutions for surfaces in the area of battery materials and emissions catalysts.

Share of sales: 15.0%
R&D expenses: €155 million
Investments including acquisitions*: €116 million

Agricultural Solutions

The Agricultural Solutions segment is an integrated solutions provider of seeds, crop protection products and digital solutions for the agricultural sector.

Share of sales: 16.1%
R&D expenses: €990 million
Investments including acquisitions*: €351 million

*Additions to property, plant and equipment and intangible assets, excluding additions attributable to the discontinued coatings business

BASF has continued to pursue a Differentiated Steering concept. Income from operations before depreciation, amortization and special items (EBITDA before special items) and free cash flow continue to be the most important financial key performance indicators for steering the BASF Group in the short to medium term. EBITDA before special items and segment cash flow are used as the most important key performance indicators for the segments. This enables us to provide a high level of transparency regarding the results of our segments. Scope 1 and Scope 2 CO₂ emissions remain the most important sustainability-related key performance indicator at Group level (for more information on the BASF Group's steering concept, see page 29 onward).

BASF's portfolio is managed in accordance with the strategy announced in September 2024. We differentiate between core businesses and standalone businesses, which operate independently. The core businesses comprise the Chemicals, Materials, Industrial Solutions and Nutrition & Care segments. They benefit from their deep integration in value chains and in the Production Verbund. The standalone businesses comprise the Surface Technologies and Agricultural Solutions segments. These serve distinct industries and compete with peers who focus exclusively on individual industries. Our standalone businesses have greater flexibility and operational freedom, enabling them to react more swiftly and appropriately to specific market requirements.

BASF Report 2025

Fundamentals of the Group

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The operating divisions, the service units, research and development and the Corporate Center are the cornerstones of the BASF organization. The operating divisions bear strategic and operational responsibility and are organized according to sectors or products.

Five service units provide competitive services for the BASF Group:

European Site & Verbund Management
Global Business Services (procurement, finance and controlling, in-house consulting services, intellectual property, communications, human resources, real estate, safety, supply chain)
Global Digital Services
Global Engineering Services
Global Procurement

Our dedicated research and development units are integrated into the divisions, while activities with broad relevance for our businesses are bundled in a research division – Group Research. This division is globally positioned with research centers in Asia Pacific, Europe and North America. With this setup, we are focusing our research activities on our customers and their industry-specific needs (for more information, see page 41 onward).

The Corporate Center supports the Board of Executive Directors in steering the company as a whole. This includes central tasks in the following areas: compliance and insurance; finance and controlling; health; corporate audit; investor relations; communications; human resources; legal, safety and quality; tax; strategy; environmental protection.

This setup lays the foundation for customer proximity, value creation, competitiveness and profitable growth.

Business and competitive environment

As a global company, BASF is present in a large number of markets and operates under various local, regional and global conditions. These include:

Global economic and political developments
Legal and political requirements
International trade agreements
Industry standards
Environmental agreements (such as the EU Emissions Trading System)
Social aspects (such as the UN International Bill of Human Rights)

BASF supplies products and services to around 75,000 customers² in almost every country in the world. Our customer portfolio comprises mainly major global customers and medium-sized enterprises. We focus on a business-to-business model and on being a partner for a wide range of downstream industries.

BASF Report 2025

Fundamentals of the Group

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

We work with more than 70,000 Tier 1 suppliers³ worldwide. They provide us with important raw materials, chemicals, investment goods and consumables, and perform a range of services (for more information, see page 264 onward).

Our most important global competitors include Arkema, Bayer, Celanese, Clariant, Corteva, Covestro, Dow, DSM-Firmenich, Eastman, Evonik, Huntsman, INEOS, Johnson Matthey, LyondellBasell, SABIC, Sinopec, Syensqo, Syngenta, Umicore and Wanhua and many hundreds of local and regional competitors. We expect competitors from Asia, North America and the Middle East in particular to gain increasing significance in the years ahead as a result of advantageous raw materials and energy prices. (BASF is a top-three market leader in over 80% of its core businesses. Equally, our standalone businesses have good to leading positions in their respective markets.)

BASF sales by region 2025

By location of customer

Corporate legal structure

BASF SE, the BASF Group's publicly listed parent company, plays a core role: Directly or indirectly, it holds the shares in the companies belonging to the BASF Group and is also one of the Group's largest operating companies. A total of 274 companies including BASF SE are fully consolidated. Eight joint operations are accounted for pro rata, while 22 companies are accounted for using the equity method (for further information, see Note 2 to the Consolidated Financial Statements from page 316 onward).

BASF Report 2025

Fundamentals of the Group

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Strategy

Our Strategy

Chemistry is our passion. Our ambition is to be the preferred chemical company to enable our customers' green transformation. With our "Winning Ways" strategy, we aim to grow profitably and create value for our shareholders based on a broad portfolio as well as our product and process innovations. Simultaneously, we are further developing our performance culture. We rely on four levers to successfully implement our strategy: Focus, Accelerate, Transform and Win. We are systematically integrating sustainability topics into our strategy and business as well as into our assessment, steering and compensation systems. This principle is embedded in our corporate purpose: We create chemistry for a sustainable future.

Humankind is facing enormous challenges in its efforts to preserve a world worth living in for future generations. The climate is changing, natural resources are becoming scarcer, pressure on ecosystems is increasing and our growing world population needs to be fed. More and more urgently than ever, solutions are needed for a more sustainable future. Chemistry is of key importance as an essential part of our everyday lives and the foundation of nearly all industries. It can pave the way to greater sustainability and accelerate the transformation needed to achieve this.

Competitive conditions in the chemical industry are changing. Our customers are also adapting their business models – for lower $\mathrm{CO}_{2}$ emissions and a more circular economy. The speed of this development varies across regions and customer industries. We want to be the preferred chemical company to enable our customers' green transformation. We are committed to the green transformation of our own production and our product portfolio (for more information, see the section on the strategic lever Transform from page 19 onward).

We aim to grow profitably and create value for our shareholders with our broad portfolio as well as our product and process innovations (for more information on our portfolio management, see the section on the strategic lever Focus from page 17 onward and for more information on accelerated value generation, see the section on the strategic lever Accelerate from page 18 onward). Our goal is for customers to be successful in their respective markets thanks to our products. Our solutions and technologies contribute to the more efficient use of raw materials, reducing waste, and enabling healthy and affordable food as well as climate-smart mobility, for example.

Our focus as a company is also on cash generation. Significantly lower capital expenditures compared to a record level in 2024, which was mainly due to the establishment of the Verbund site in Zhanjiang, and the consistent implementation of our cost savings programs stand for a high degree of capital discipline (for more information on capital and resource allocation under the strategic lever Focus see page 17 onward).

At the same time, we are further developing our performance culture with the aim of making BASF an even more performance-driven organization. To this end, we have established nine actionable Winning Behaviors (for more information, see the section on the strategic lever Win from page 20 onward).

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Fundamentals of the Group | 15

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

As an international chemical company, we operate in countries and markets with different guidelines and conditions. We are guided by our values and our global standards in order to act responsibly and maintain our license to operate. The main guidelines are primarily summarized in our BASF policies on compliance, human rights, labor standards and in the Supplier Code of Conduct. With appropriate management and monitoring systems, we want to ensure that we act in line with the applicable laws and take responsibility for the environment and society. (Customers, shareholders, partners and employees can rely not only on the high quality of our products, but also on the way in which we conduct business.

With our CORE values, we combine economic success with the creation of value for the environment and society and stand for respectful interaction with each other and with our customers and partners:

C – creative: We make great products and solutions for our customers. This is why we embrace bold ideas and give them space to grow. We act with optimism and inspire one another.

O – open: We value diversity, in people, opinions and experience. This is why we foster feedback based on honesty, respect and mutual trust. We learn from setbacks.

R – responsible: We value the health and safety of people above all else. We make sustainability part of every decision. We are committed to strict compliance and environmental standards.

E – entrepreneurial: We focus on our customers, as individuals and as a company. We seize opportunities and think ahead. We take ownership and embrace personal accountability.)

Our standards are based on, and in some cases, exceed existing laws and regulations and take internationally recognized principles into account. We respect and promote:

The Universal Declaration of Human Rights of the United Nations (U.N.) and the two U.N. Human Rights Covenants
The Ten Principles of the UN Global Compact
The core labor standards of the International Labour Organization (ILO) and the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy
The United Nations' Guiding Principles on Business and Human Rights
The OECD Guidelines for Multinational Enterprises
The Responsible Care® Global Charter of the International Council of Chemical Associations (ICCA)
The German Corporate Governance Code (GCGC)

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Our Strategic Levers

BASF’s strategic direction is based on a comprehensive analysis of our markets, competitors and the economic environment. We continuously monitor global trends and short-term developments and anticipate the resulting opportunities and risks. In doing so, we keep a close eye on our customers’ needs and the transformation of our company.

Our “Winning Ways” strategy is based on four strategic levers:
Focus, Accelerate, Transform and Win.

Focus

At the center of the strategic lever Focus is our portfolio management. BASF distinguishes between core businesses and standalone businesses. The core businesses comprise the Chemicals, Materials, Industrial Solutions and Nutrition & Care segments. These are closely integrated into BASF’s value chains and Production Verbund at major sites. (They generate value through efficient use of resources, operational excellence and cost efficiency.) The portfolio of our core businesses ranges from basic chemicals to specialties. The standalone businesses, which have greater flexibility and operational independence, comprise the Surface Technologies segment with the Environmental Catalyst and Metal Solutions (ECMS) and Battery Materials divisions as well as the Agricultural Solutions segment. Until October 1, 2025, the Surface Technologies segment also included the Coatings division (more on the changes in Coatings in 2025 on page 18 and on the segments and divisions from page 25 onward).

In the coming years, we will focus on strengthening our core businesses and growing profitably in these areas, organically or through value-increasing acquisitions: We see the current consolidation in the chemical industry as an opportunity for BASF. We want to operate our core businesses in an even more cost-efficient and leaner manner in order to secure their profitability and competitive advantage over emerging competitors, in particular from China and the Middle East.

Our standalone businesses compete with pure-play peers that are subject to their own market trends. We want these businesses to be able to respond quickly to the specific requirements of their customers and to strengthen their competitive position. We therefore rely on various measures, such as the introduction of standalone ERP systems (Enterprise Resource Planning Systems) or differentiated steering with industry-specific financial steering indicators in order to make the performance of the businesses more transparent compared to competitors (for more information, see page 29). We have further promoted the entrepreneurial independence of our standalone businesses and have identified individual paths through which each business can generate the greatest value:

Our ECMS business has been carved out since 2023. It operates in a low-growth industry but continues to deliver a strong cash contribution. At present, we see ourselves as the best owner to operate this business.
Our Battery Materials business operates in a rapid-growth environment characterized by high market and technology risks. We have significantly reduced fixed costs and capital expenditures and signed contracts with key customers to utilize existing capacities. We are also investigating opportunities for cooperation along the value chain.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

In the Coatings division, we completed the sale of the Brazilian decorative paints business to Sherwin-Williams, Cleveland, Ohio, effective October 1, 2025. In October 2025, we signed a binding agreement with Carlyle, Washington D.C., for the sale of the automotive OEM coatings, automotive refinish coatings and surface treatment business units. The transaction is expected to close in the second quarter of 2026, subject to regulatory approvals. We will then continue to hold a 40% equity stake in this coatings business (for more information, see page 39).
For the Agricultural Solutions segment, we are targeting IPO readiness by 2027, in order to float a minority stake. The Frankfurt Stock Exchange is targeted as listing location. The legal carve-out and the implementation of an industry-specific ERP system are progressing well.

Under the strategic lever Focus, we have changed our internal steering processes for capital and resource allocation in order to focus even more strongly on cash generation and to strengthen our capital discipline. We are now following a strategic allocation approach for our operating divisions instead of the largely project-based approach previously used at BASF Group level. We have developed medium-term value creation plans for the divisions based on their respective roles in the BASF portfolio. These plans are the basis for capital allocation. Within this framework, the operating divisions are empowered with increased autonomy to make business decisions – and with it their accountability for business success.

The strategic focus on profitable growth also means prioritizing high-growth markets. One example of this is our new Verbund site in Zhanjiang, China. We manufactured the first products from the Verbund there in November 2025. Commissioning of the steam cracker commenced at the end of December 2025. This project milestone was achieved on schedule with strict cost discipline, and we expect to remain below the original project budget, with total investments of around €8.7 billion in the period 2019 to 2028.

In addition to China, we want to expand our presence primarily in India and five ASEAN countries (Indonesia, Malaysia, Singapore, Thailand and Vietnam) by strengthening local organizational structures, our production sites and our research and development (R&D) activities. These seven countries will account for around 80% of global chemical growth by 2035.

Accelerate

With the strategic lever Accelerate, we want to generate value faster by adjusting the way in which we collaborate and complete tasks at BASF. Our priority is to empower our business units through lean steering, simplify our organizational structure and increase the use of artificial intelligence (AI).

The Board of Executive Directors focuses on topics that are important to BASF as a whole: strategy, portfolio management, capital allocation and talent development. By contrast, the individual operating divisions have greater ownership of specific business decisions and accountability for business success. In line with this, we introduced an enhanced performance management system in 2025 that provides a closer link between incentives and unit-specific performance (for more information, see page 30).

We are making our organization simpler and leaner by sharpening role clarity, flattening hierarchies and by reducing bureaucracy and internal alignment processes. Spans of control are being broadened to increase individual ownership. An important step in this direction was dissolving the regional dimension of our organizational structure, which was mostly completed at the end of 2025. With few exceptions, the responsibilities of the previous country organizations have been transferred to the largest operating division in each country. In smaller markets, we are either forgoing our local presence or developing new sales approaches to reduce the complexity of our sales channels. With this simplified organizational setup, we are aiming to accelerate decisions in all areas of our company.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

BASF is harnessing the potential of digitalization and AI to advance productivity and accelerate innovations. We aim to gradually enable our employees to utilize AI in their respective areas of work. For this purpose, we provide them with a variety of digital tools in their day-to-day work and offer accompanying training courses. At the same time, our focus is on applications whose added value has been confirmed by fast and effective pilot projects. In particular, we target key functions such as sales, marketing, R&D, production, procurement and services. One example is the Sonata analysis platform, which automatically analyzes large volumes of production data and helps to prevent quality deviations in the production process. Another example is the cloud-based software solution OMP, which combines previously fragmented planning processes for BASF supply chains into one optimized system. With this BASF wants to respond faster and more effectively to market requirements.

Transform

Sustainability is an integral part of our strategy as well as our targets, steering processes and business models. We are fully committed to our climate protection targets (for more information on our sustainability strategy, see page 155 onward and for more on our targets, see page 32 onward) as well as to the green transformation of our production and our product portfolio.

With the strategic lever Transform, we aim to drive the green transformation in a more differentiated and focused way as well as in line with market development, in order to grow profitably. Our transformation approach goes beyond the green transformation of our own production. Our key customer industries are facing tremendous challenges in achieving their transformation targets. We want to be the preferred chemical company to enable our customers' green transformation with our broad portfolio as well as our product and process innovations.

Our approach here is to intensify our focus on specific opportunities for our business and to increase volumes of products with sustainability attributes according to customer needs. With this approach, we are mitigating the investment and business risks resulting from capital-intensive new technologies and the varying transformation speed of our customer industries. In addition, in the green transformation we are prioritizing projects that have a positive impact on our license to operate.

Over time, we are staggering our transformation projects based on these priorities. In recent years, we have already increasingly invested in renewable energies to operate our plants. Furthermore, we are already piloting new technologies in selected value chains, are using alternative raw materials and have launched products with sustainability attributes such as a reduced or net-zero product carbon footprint (Low/Zero Product Carbon Footprint; LowPCF/ZeroPCF). We are now focusing on ramping up the use of renewable, recycled and low-emission feedstocks in our existing plants and thus offering more products with a reduced carbon footprint and other sustainability attributes in line with market demand and at low capital expenditure. At the same time, we consistently continue to evaluate new business models and technologies. As markets for more sustainable products grow, we want to be in a position in the medium to long term to apply and scale up the new technologies we are currently developing and, in some cases, already piloting.

[In line with our market-oriented approach and the reduced speed of industrial feedstock transformation, we have adjusted our investments to an expected €1.2 billion from 2026 to 2029.] We continue to assume that most of the major capital expenditure for our green transformation will be incurred after 2030.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

BASF's integrated Verbund system has fundamental advantages for our transformation approach, in particular the energy and resource efficiency provided by the Verbund and the numerous entry points that offer feedstock flexibility. We can be flexible and scalable in how we employ renewable and recycled feedstocks in existing plants. We therefore expect that BASF as a whole, will benefit from the change and growth momentum in connection with the green transformation. This also applies to our largest site, Ludwigshafen, and its integrated Verbund.

In the medium to long term, our aim is to successfully develop Ludwigshafen into a leading, sustainable chemical site for Europe with an improved competitive position. To this end, we have initiated, among other things, a cost savings program with a focus on the Ludwigshafen site. From the end of 2026, we aim to save more than €2.3 billion worldwide compared to the base year 2022 with all ongoing programs and measures – €200 million more than originally targeted.

In Ludwigshafen, we have conducted a thorough analysis of our production asset structure based on current and future market and customer demand: Selected plants and production lines no longer deliver sufficient earnings or are at risk of losing their competitiveness. Against this background, we decided to close individual plants and discontinue business operations in 2025. However, the majority of the assets in the Ludwigshafen Verbund remain competitive. In addition, we are investing in new plants in Ludwigshafen, for example for the production of high-purity chemicals for semiconductor manufacturing, in order to meet the growing demand for advanced semiconductor chips in Europe.

Win

The strategic lever Win is how we want to drive change in corporate culture throughout the entire company. This change is a decisive factor for us in successfully implementing our "Winning Ways" strategy. Our Winning Culture is based on three topics to make BASF an even more performance-oriented company: Accountability (Own it!), Speed (Drive it!) and Improvement Mindset (Excel in it!).

Within these three topics, the Board of Executive Directors has developed nine actionable Winning Behaviors: They define the behavior that BASF expects from all employees, including the Board of Executive Directors, and show in a concrete way how each and every individual can contribute to successful change.

Accountability:

We give and take ownership over narrow supervision.
We strive for results, not staying in the comfort zone.
We take action on low performance, not dragging it along.

Speed:

We prioritize speed over perfection.
We spread motivation and inspiration, not skepticism.
We focus, not do a bit of everything.

Improvement Mindset:

We fight for the best solution over compromises.
We give candid and constructive feedback, not empty phrases.
We learn from external perspectives, not just from internal views.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Our CORE corporate values (creative, open, responsible, entrepreneurial) will remain the guide for our behavior (for more information, see page 16).

We want to deepen our employees' understanding of the Winning Behaviors and inspire them to actively live them out. For this purpose, we have, for example, provided various internal communication formats such as videos and podcasts. Employees regularly have the opportunity to provide feedback on the progress of change in corporate culture in global surveys. The survey results from 2025 confirm that cultural change is progressing. In October 2025, employees indicated that in their work environment all Winning Behaviors were being implemented more strongly than in March 2025.

Further developing our corporate culture goes hand in hand with our enhanced performance management system with a closer link between incentives and unit-specific achievements. We introduced this worldwide in 2025 (for more information, see page 30).

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At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

How We Create Value

ESRS 2 SBM-1

The following overview shows how we create value for our stakeholders.

Inputs	Business model	Outputs	Outcomes	Impact

Inputs

Financial	Innovations	Production
Our aim is to increase profitability and the ability to generate cash, optimize our cost of capital and limit financial risks.	We develop innovative and more sustainable solutions with our customers and suppliers in order to enter new markets and further increase our productivity.	Safety, quality and reliability as well as environmental protection are the key to our excellence in production.
45.1%
Equity ratio	~9,000
R&D employees	€4.0 billion
Capital expenditures (capex)
3 single A ratings
From credit rating agencies Fitch, Moody's and Standard & Poor's	€2.0 billion
R&D expenses	36%
Electricity from renewable sources²
Environment	Employees	Partnerships
We use renewable resources, among other things, to manufacture products and solutions with high value added for our customers.	Everything we do is based on the expertise, knowledge and engagement of our employees.	Trust-based relationships are crucial to our license to operate and our reputation.
1.1 million metric tons
Renewable resources²	108,251
Employees around the world	>70,000
Suppliers
1,521 million m³
Total water withdrawal²	€12.3 billion
Personnel expenses	~75,000
Customers

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Inputs

Business model

Outputs

Outcomes

Impact

Business model

Outputs3

Financial	Innovations	Production
€6.6 billion	898	~40,000
EBITDA before special items	New patents worldwide	Products evaluated with TripleS (Sustainable Solution Steering)4,5
€2.4 billion	~€11 billion	5.2 million metric tons
For dividend payments and share buybacks6	Sales of products launched in the past five years7	Amount of CO2avoided by the Verbund and combined heat and power generation4
Environment	Employees	Partnerships
>1,900	77%	357
Mass balance products based on alternative raw materials4	Engagement Index according to our annual employee survey4	Evaluations of BASF suppliers as part of Together for Sustainability4
81%	29.9%	269
Water demand recirculated4	Global share of women in leadership positions4	Collaborations with universities and research institutes4

3 The discontinued coatings business is not included in the following key figures shown in this graphic: EBITDA before special items, patents, sales of innovations, products evaluated with TripleS, collaborations with universities and research institutes. See also page 148.
4 The sustainability-related key figures shown in this graphic are - unlike the financial key figures shown - not part of the statutory audit but are part of a separate audit with limited assurance.
5 The definition of the relevant portfolio and further information on TripleS can be found on page 157.
6 In 2025, around €2 billion in dividends for the 2024 business year was paid out to the shareholders of BASF SE and shares were repurchased for €355 million.
This is voluntary, unaudited information, which was critically read by the auditor.

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At a Glance
Combined Management's Report
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Further Information

Inputs
Business model
Outputs
Outcomes
Impact

Outcomes

Relevant external impact factors for our company's success as well as positive and negative impacts of our business activities⁸:

Economic
Environmental
Social

Selected relevant external impact factors

Customer demand and requirements
Investment readiness
Capital market trends
State of the economy, competitive conditions, investment climate
Climate change
Energy transformation
Availability of/access to renewable resources
Climate-related legislation
Regulations on product safety
Sustainability targets of our customers
Demand for more sustainable products, willingness to pay
Labor, environmental and social standards
Stakeholder trust
Interest of qualified personnel and leaders
Demographic change

Selected impacts of our business activities

Growth, progress and value creation for the state, customers, investors and employees
Our customers' competitiveness and innovative strength
Digital transformation of the industry
Attractive dividend and share buyback payments to shareholders
Market development through more climate-smart products
Contribution to climate protection/ climate change adaptation
Innovation as a lever for climate protection
Contribution to the circular economy
More environmentally friendly and safer products
Greenhouse gas emissions
Emissions to air and water
Land use
Resource consumption and nonrecyclable waste
Potential misuse or spillage of products
Taxes and competitive wages and salaries
Attractive jobs
Integration, help to overcome social challenges
Global compliance systems and codes of conduct
Procurement of raw materials with risk of violation of, for example, social and environmental standards
Health and occupational safety risks
Restructuring measures such as personnel adjustments

BASF

We address positive and negative impacts through:

Corporate strategy
Portfolio management
Cost management, cost of capital optimization and efficient capital allocation
Differentiated Steering
Climate protection and circular economy initiatives
Water and energy management
Actions to protect biodiversity
Responsible Care Management
Supplier management
Sustainability projects in the supply chains
Compliance Program and Code of Conduct
Employee training programs
Performance management system

In providing our customers with solutions to enable their green transformation, we want to grow profitably and create value.

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⁸ Outcomes shows examples of impacts on our business and impacts that our activities may have on others, the environment and our business environment as well as the associated measures we take.
⁹ The results of our double materiality assessment are included in the presentation of external factors and impacts of our business activities. These are not shown in full here. A comprehensive explanation of the impacts, risks and opportunities identified as part of our double materiality assessment can be found from page 163 onward.

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Business Models of the Segments

Our segments' business models are consistently aligned with their respective strategic action areas. Customer orientation, innovation and sustainability are the cornerstones of future business success. Thanks to our extensive industry knowledge, we are aware of the particular challenges our customers are facing and we can offer customized solutions that support their specific efforts in their green transformation and make them even more successful.

Chemicals

The Chemicals segment is one of our core businesses and forms the heart of the Verbund with its production facilities. Its Petrochemicals and Intermediates divisions market high-quality basic chemicals and intermediates to customers in downstream industries. They also reliably supply BASF's other segments with chemicals to produce higher value-added products and in this way, ensure the competitiveness of the BASF Group.

The segment strives for technological leadership and operational excellence and focuses on individual value chains. It concentrates on the essential success factors of the traditional chemicals business: leveraging economies of scale and the advantages of our Verbund, high asset reliability, continuous optimization of access to raw materials, lean and energy-efficient processes, and reliable, cost-effective logistics. This enables fundamental cost advantages and opens up various opportunities for decarbonization. The segment aims to create value through process and product innovation and invests in research and development to implement new, more sustainable technologies and make existing technologies even more efficient. Thanks to our integrated production processes, the carbon footprint of a number of our products is significantly lower than that of our competitors. Furthermore, by using renewable, recycled and low-emission feedstocks in our production network, we can provide products with diverse sustainability attributes. Examples of these offerings include our LowPCF, ZeroPCF and Ccycled® products.

The Petrochemicals and Intermediates operating divisions are continuously developing their value chains and are expanding their market position – especially in Asia – with investments and collaborations in growth markets. We want to participate in the growth of the largest chemicals market in the world and establish the Verbund site in Zhanjiang as a pioneer in sustainability in the manufacturing industry in China. We manufactured the first products from the Verbund there in November 2025, and commissioning of the steam cracker commenced at the end of December 2025. We are also continuously reviewing and improving our production structures in other regions and aligning them with regional market requirements. At the Verbund site in Ludwigshafen, for example, the production capacity of Neopor® is being expanded (for more information, see page 36).

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Materials

The Materials segment is also a core business and in terms of production capacity is a global leader in high-performance plastics and their precursors. Materials is home to the Performance Materials and Monomers divisions. The Performance Materials division offers innovative and customized solutions in engineering plastics, polyurethanes and thermoplastic polyurethanes, as well as special plastics, and creates value through co-creations with customers, particularly in the field of sustainability. Our global production network enables us to provide our solutions wherever our customers are. At the same time, we constantly review the efficiency of our production network. The Monomers division has a broad portfolio of large-volume monomers and basic polymers in the isocyanate and polyamide value chains and follows a lean and cost-driven approach focused on efficient structures. In a large part of its business areas, the Monomers division holds one of the top three market positions with regard to production capacities, for example in polyamides and isocyanates.

The Materials segment combines expertise in basic chemicals with a diverse range of high-performance specialties and successfully operates some of BASF's most profitable value chains, for example methylene diphenyl diisocyanate (MDI). Throughout the chemical cycle, the Materials segment plays an important role in BASF's portfolio with its high cash flow and earnings contributions. The fully integrated polyurethane and polyamide value chains with world-scale plants ensure cost advantages. Thanks to its R&D capabilities, the segment is developing new, more sustainable high-performance materials and applications for a broad range of industries, particularly in the automotive, construction, and consumer goods industries.

Both divisions follow ambitious sustainability roadmaps. They understand sustainability as the decisive factor for future business success and utilize their industry knowledge and application expertise to provide customers with the right solutions.

Industrial Solutions

The Industrial Solutions segment is another part of the core businesses and develops and markets ingredients and additives for industrial applications. The customers of its two operating divisions, Dispersions & Resins and Performance Chemicals, are primarily active in the following key industries: coatings, construction, electronic materials, plastics and adhesives, paper coatings, automotive, petrochemical and petroleum processing, as well as energy and resources. The segment aims to generate value through customer proximity, in-depth industry expertise and a broad product portfolio that is tightly integrated into the BASF Verbund. The portfolio includes fuel and lubricant solutions, process catalysts and adsorbents as well as refinery catalysts, dispersions, resins and additives, electronic materials and plastic additives. The segment's focus is on research and development with the aim of enabling a more efficient use of resources and developing high-performance and more sustainable products and production procedures. Furthermore, the divisions focus on efficient production setups and backward integration in our Production Verbund's value chains. In addition, capacity management as well as technology and cost leadership are important levers for the segment.

Trends such as ever faster time to market for electronic materials innovations, longer product life cycles and increasing processing of recycled plastic are boosting the need for products that enable precisely these trends. With its broad product portfolio, the segment is ideally positioned for this. Our global presence enables us to operate in close proximity to our customers, collaborate with them on new and customized solutions and strive for long-term partnerships that create mutually profitable growth opportunities.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Nutrition & Care

The Nutrition & Care segment is also part of our core portfolio. The Care Chemicals and Nutrition & Health divisions provide highly attractive markets with high-quality, high-performance products. Future growth in these markets will be driven by rising consumer awareness of sustainable product solutions with lower carbon footprints and the demand for natural and organic ingredients and their traceability. Moreover, digitalization, a focused technology and product portfolio, and close cooperation with our customers are crucial to meeting the dynamic market requirements. The basis for this segment's business are highly competitive, world-scale plants that are deeply integrated in the BASF Verbund.

For this segment, we strive to expand its market position as a leading provider of nutrition and care ingredients. The divisions generally focus their portfolio on growth markets and continuously develop their capabilities in areas such as biotechnology. They offer new biodegradable products. The Care Chemicals division supports its customers globally with innovative and more sustainable high-performance products, solutions and concepts, especially in the cosmetics, detergent and cleaner industries. The Nutrition & Health division focuses on important product platforms (vitamins, carotenoids and feed enzymes), which are supplemented by selected growth fields such as special aroma ingredients and (bio)pharma ingredients. With its (bio)pharma ingredients, the division serves a variety of markets, such as bioprocessing and formulation of vaccines and antibodies.

Surface Technologies

Some of our standalone businesses are bundled in the Surface Technologies segment, consisting of the Battery Materials and Environmental Catalyst and Metal Solutions divisions. Together with our customers, we develop novel products and technologies for emissions catalysts, coatings and battery materials. We also offer services in the areas of precious and base metals. We leverage our portfolio of technologies to find the best solution for our customers in terms of performance and cost and thus to generate growth. This helps our customers to drive forward innovation in their industries and contribute to more sustainable development.

Our key growth drivers are the increasing demand for chemicals in the automotive market, especially in Asia, and the shift toward more sustainable low-emission mobility. As one of the largest chemical suppliers to the automotive industry, the segment is developing customized, more sustainable solutions for battery and catalyst recycling in close cooperation with its customers. Our specialties and system solutions in these areas enable our customers to stand out from their competitors.

Until October 2025, the Surface Technologies segment also included the Coatings division, which is no longer listed as part of the segment due to the following transactions: On October 1, 2025, BASF completed the sale of its Brazilian decorative paints business to Sherwin-Williams. In addition, on October 10, 2025, BASF and Carlyle announced they had signed an agreement for the sale of BASF's automotive OEM coatings, automotive refinish coatings and surface treatment business units. The transaction is expected to close in the second quarter of 2026, subject to the approval of the relevant competition authorities (for more information on material investments and portfolio measures, see page 36 onward).

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Agricultural Solutions

The Agricultural Solutions division, which shares its name with the segment, is one of our standalone businesses. As one of the world's leading agricultural solutions companies, we are making a positive impact on sustainably transforming agriculture and food systems. The goal of efficient farming is to provide healthy and affordable food globally to a rapidly growing world population.¹ At the same time, farmers must reduce their environmental impact as natural resources are limited. We support them in achieving this and strive to contribute to building a sustainable future for agriculture by connecting innovation, customers and society.

The segment's strategy focuses on long-term and profitable growth within selected crops and their appropriate cultivation systems: soy, corn (maize) and cotton in the Americas; wheat, canola (oilseed rape) and sunflower in North America and Europe; rice in Asia; and fruit and vegetables globally. Our sustainability approaches are integral to all business and portfolio decisions. In this way, we help farmers sustainably grow more and higher-quality crops.

We leverage our expertise in research and development as well as our many years of experience working with growers, data and artificial intelligence to provide crop-specific offers across technologies. These include novel solutions for seeds and traits, seed treatment, fungicides, herbicides, insecticides, biological solutions and digital products tailored to the farming needs of their region and crop systems.

¹ Compared with 2024, the world's population is expected to grow by around 1.5 billion people by 2050; source: UN World Population Prospects 2024.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Our Steering Concept

Our “Winning Ways” strategy pursues the goal of strengthening the autonomy of the operating divisions and their responsibility for their own business success, as well as increasing the competitiveness of the business units. To this end, we use a steering concept that includes both financial and sustainability-related indicators.

Steering concept of the BASF Group

At the beginning of 2024, we launched a new, optimized steering concept at both Group and segment level. The goal is to strengthen the autonomy of our business units and thus also their responsibility for business success.

We use three most important key performance indicators to steer the BASF Group: income from operations before depreciation, amortization and special items (EBITDA before special items), free cash flow as well as Scope 1 and Scope 2 CO₂ emissions.

EBITDA before special items is used to steer our profitability. It describes the operational performance of our businesses independent of age-related depreciation and amortization of assets and is particularly suitable for comparisons with businesses in similar sectors.

We use free cash flow to steer the ability to generate cash. The indicator shows the extent to which operating cash surpluses are available for the payment of dividends, the reduction of debt or for acquisitions.

We regard sustainability as a decisive factor for our long-term business success. This view is also reflected in our steering concept with Scope 1 and Scope 2 CO₂ emissions as the most important sustainability-related key performance indicator at Group level.

In addition, our return on capital is an important part of the steering concept. Return on capital employed (ROCE) depends significantly on strategic decisions such as acquisitions, divestitures and investments, making it a suitable medium-term target for the BASF Group. This is reflected in the ROCE target that we have set ourselves for 2028.

The key figures for steering the business units are based on the most important financial key performance indicators of the BASF Group. For example, the profitability of the segments is measured by their absolute contribution to EBITDA before special items.

To manage cash flow at segment level, we use a specific key figure, segment cash flow, which includes the elements of free cash flow that can be managed by the operating divisions. This key performance indicator also applies to all segments.

For the year 2025 as well as for the comparative period, the key performance indicators EBITDA before special items, as the most significant performance indicator, as well as ROCE and segment cash flow are reported excluding the discontinued coatings business, while free cash flow and CO₂ emissions include the businesses to be divested. For the calculation of performance-based compensation for the year 2025, EBITDA before special items including coatings (€7,098 million) is considered.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Value-based management throughout the company

A performance-related variable compensation system based on financial and non-financial targets is an important part of our value-based management. The performance management system has been adapted in line with the increased autonomy of the business units. Already since 2024, variable compensation for senior executives has been based on targets derived from the key performance indicators for the steering of the respective business unit or the BASF Group respectively. As planned, we introduced this differentiated bonus system for the majority of employees worldwide over the course of 2025. As part of this enhanced performance management system, BASF takes into account not only the ROCE of the BASF Group, but also other financial and nonfinancial key performance indicators of the operating division in which the relevant person works. For employees who do not work in an operating division, the targets of the BASF Group and the nonfinancial targets of the respective unit apply. This means that variable compensation is linked to our ROCE target and the performance of the relevant BASF unit. This is a further step toward Differentiated Steering with a high degree of accountability on the part of the business units.

Key figures in reporting

In line with the steering concept, in financial reporting we analyze, comment on and forecast the most important key performance indicators EBITDA before special items and free cash flow for the BASF Group, and EBITDA before special items and segment cash flow for the segments. We also forecast cash flows from operating activities and payments made for property, plant and equipment and intangible assets as key elements of free cash flow.

ROCE is managed as a medium-term target on the basis of factors that include capital expenditure in property, plant and equipment. These comprise additions to property, plant and equipment excluding additions from acquisitions, IT investments and restoration obligations as well as right-of-use assets arising from leases. Capital expenditure is therefore a key element of ROCE and is also forecast.

Calculation of EBITDA before special items

EBITDA is the result from income from operations reported in the Consolidated Financial Statements plus depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets. This is adjusted for special items that may arise from the integration of acquired businesses, from restructuring measures, from gains or losses resulting from divestitures and sales of shareholdings as well as from other expenses and income that may arise outside of ordinary business activities.

Calculation of free cash flow and segment cash flow

Segment cash flow measures the cash inflow and outflow of a segment and thus its contribution to the BASF Group's free cash flow. It includes only those amounts that can be steered by the segment and is calculated from EBITDA, changes in inventories and trade accounts receivable, and other extraordinary adjustments (such as those related to divestitures), less payments made for intangible assets and property, plant and equipment. The BASF Group's free cash flow also includes components of cash flows from operating activities that are not allocated to the segments as well as adjustments of other noncash effects.

Free cash flow is the cash flows from operating activities less payments made for intangible assets and property, plant and equipment.

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Reconciliation of segment cash flow to free cash flow

EBITDA of the segments

Changes in inventories
Changes in trade accounts receivable
Gains (-) / losses (+) from the disposal of noncurrent assets and divestitures
Payments made for property, plant and equipment and intangible assets

Segment cash flow

Net income from shareholdings
Financial result
Income taxes
Segment cash flow, net income from shareholdings, financial result and income taxes from discontinued operations
Income after taxes attributable to noncontrolling interests
Changes in items included in the segment cash flow that are recognized under Other
Remaining items recognized in cash flows from operating activitiesa

Free cash flow

a These include changes in trade accounts payable, provisions, other operating assets, other operating liabilities and pension provisions as well as equity-accounted income, dividends received from equity-accounted investments and other noncash items.

Calculation of CO₂ emissions

We calculate the BASF Group’s absolute CO₂ emissions on the basis of greenhouse gas emissions, which are the sum of direct emissions from production processes and the generation of steam and electricity (Scope 1), as well as indirect emissions from the purchase of energy (Scope 2). For this target key figure, direct emissions from the generation of energy for third parties are not considered. Relevant emissions include other greenhouse gases according to the Greenhouse Gas Protocol, which are converted into CO₂ equivalents (for more information, see page 172 onward).

Calculation of ROCE and cost of capital

ROCE is calculated as the EBIT of the segments as a percentage of the average cost of capital basis.

To calculate the EBIT of the segments, we take the BASF Group’s EBIT and deduct the EBIT of activities recognized under Other, which are not allocated to the segments.

The cost of capital basis is calculated using the month-end figures and consists of the operating assets of the segments. They include property, plant and equipment as well as intangible fixed assets, integral investments accounted for using the equity method, inventories, trade accounts receivable, other receivables and miscellaneous assets as well as, if applicable, the assets of disposal groups, insofar as they are allocated to the segments. The cost of capital basis also includes customer and supplier financing.

We have integrated the cost of capital percentage into our ROCE target as a comparative figure. This is determined using the weighted cost of capital from equity and borrowing costs (weighted average cost of capital). To calculate a pretax figure similar to EBIT, the cost of capital is adjusted using the expected tax rate for the BASF Group for the business year. In addition, the projected net expense of Other is already provided for by an adjustment to the cost of capital percentage. The cost of equity is ascertained using the capital asset pricing model. Borrowing costs are determined based on the financing costs of the BASF Group. The cost of capital percentage for 2026 is 10% (2025: 10%).

BASF Report 2025
Fundamentals of the Group

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Our Targets and Target Achievement 2025¹

For us, long-term business success means creating economic, ecological and social value, which is why we pursue measurable targets along the entire value chain. We report transparently on our progress in achieving these targets so that stakeholders can understand and evaluate our development.

Our objective is profitable growth – we have set ambitious targets for our EBITDA before special items, our cumulative free cash flow and our targeted return on capital employed (ROCE) by 2028. We continue to adhere to our shareholder distribution policy: We aim to keep the overall distribution to shareholders at least at prior-year levels through a combination of dividends and share buybacks.

We have also set ourselves comprehensive targets in the area of sustainability. For instance, regarding climate protection: We want to significantly reduce greenhouse gas emissions from our production processes (Scope 1)² and our energy purchases (Scope 2)² by 2030. [At the same time, we are pursuing an ambitious target to reduce our specific raw materials-related emissions (Scope 3.1)³. Our long-term target is to achieve net zero for our Scope 1, Scope 2 and Scope 3.1 emissions by 2050. In addition, we want to advance sustainability in the supply chain in a targeted manner and are therefore focusing on improving the sustainability performance of suppliers with an increased risk.

With our “Winning Ways” strategy, we are continuing our efforts to steer our product portfolio even more toward sustainability. For this reason, we aim to further increase our sales of Sustainable-Future Solutions, defined as products that make a positive contribution to sustainability, by 2030. We are also aiming to increase sales of Loop Solutions – products that close or extend loops and thus support the transition to a more circular economy.

The health and safety of our employees and the protection of the environment are our highest priority. In the area of occupational and process safety, we focus on high severity injuries and incidents. We also advocate for the protection of water as a resource, the continuous improvement of water use efficiency and the reduction of emissions. We focus on our Verbund sites as well as on production sites in water stress areas.⁴

Furthermore, we strive to increase the number of women in leadership positions worldwide⁵ and to create a working environment in which our employees can thrive and perform at their best.

To underscore the importance of our targets, both the long-term and short-term variable compensation of the Board of Executive Directors and senior executives is linked to the achievement of selected financial and sustainability-related targets (see page 178).

The following table shows our targets and the respective degree of achievement for the 2025 business year. Some targets and prior-year figures have been technically adjusted due to the planned divestiture of the automotive OEM coatings, automotive refinish coatings and surface treatment business units and are indicated accordingly.

¹ With the exception of the financial targets and indicators specified as well as the Scope 1 and Scope 2 emissions, the contents of this chapter are not part of the statutory audit but are part of a separate audit with limited assurance.

² Scope 1 and Scope 2 (excluding the sale of energy to third parties). The emissions account for 96% of total Scope 1 and Scope 2 emissions in relation to the 2018 base year. The target includes greenhouse gases according to the Greenhouse Gas Protocol, which are converted into CO₂ equivalents (CO₂e). Scope 2 emissions are calculated using the market-based approach in accordance with the Greenhouse Gas Protocol. The target is aligned with limiting global warming to a global average of 1.5°C, and is thus science-based. It has not been externally audited.

³ Scope 3.1, raw materials excluding battery materials, excluding services and technical goods, excluding greenhouse gas emissions from BASF trading business. Future adjustment of the baseline in line with the Together for Sustainability guideline (TfS) possible depending on the availability of further primary data. The base year is 2022. For additional information on the calculation method, see page 196.

⁴ We define water stress areas as regions in which more than 40% of the available water is used by industry, households and agriculture. Our definition is based on the Water Risk Atlas (Aqueduct 4.0) published by the World Resources Institute. For more information, see wri.org/aqueduct. Our water target also continues to take into account the sites that we identified as water stress sites in accordance with Pfister et al. (2009) prior to 2019, as well as water stress sites according to Aqueduct 3.0.

⁵ We strive to always act in accordance with the applicable local laws.

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Consolidated Financial Statements

Further Information

Degree of target achievement 2025⁶

Profitable growth⁷

EBITDA before special items	Status 2025	Target
In the 2028 business year, we want EBITDA before special items to reach a value between €9 billion and €11 billion in moderate to good economic conditions.⁷	€6.6 billion
2024: €7.2 billion⁷	€9.0–11.0 billion⁷
2028
Free cash flow
Cumulative free cash flow is expected to be around €11 billion between 2025 and 2028.⁷	€1.3 billion
2024: €0.7 billion	~€11.0 billion⁷
2025–2028
Return on capital employed (ROCE)
For the 2028 business year, we aim to achieve a return on capital employed (ROCE) of around 10%.	5.8%
2024: 5.1%⁷	~10%
2028

See also Results of Operations and Financial Position

Dividend per share

| We strive for a dividend per share of at least €2.25 annually. | €2.25⁸
2024: €2.25 | ≥€2.25
2025-2028 |
| --- | --- | --- |

Distribution to shareholders

| Between 2025 and 2028, we want to pay out a total of at least €12 billion to shareholders through dividends and share buybacks. | €2.4 billion⁹ | ≥€12 billion
2025-2028 |
| --- | --- | --- |

Effective climate protection

CO₂ emissions (Scope 1 and 2)	Status 2025	Target
We want to reduce our absolute CO₂ emissions (Scope 1 and 2) by 25% by 2030 compared with 2018.¹⁰	16.1 million metric tons CO₂e
2024: 17.0 million metric tons	16.4 million metric tons CO₂e
2030
2018: 21.9 million metric tons

CO₂ emissions (Scope 3.1)

| We want to reduce our specific Scope 3.1 emissions by 15% by 2030 compared with 2022.¹¹ | 1.62 kg CO₂/kg raw material
2024: 1.58 kg | 1.39 kg CO₂/kg raw material
2030
2022: 1.64 kg |
| --- | --- | --- |

Responsible procurement

Sustainability performance	Status 2025	Target
We are striving toward ensuring that annually, 80% of suppliers who underwent a sustainability evaluation during the reporting period, and who had inadequate results in a prior comparable evaluation, improve their sustainability performance.	77%
2024: 76%	80%
2030

More sustainable products

Sustainable-Future Solutions	Status 2025	Target
By 2030, we want to achieve more than 50% of BASF sales relevant for TripleS^{12} from products that make a positive contribution to sustainability.	48.5%
2024: 46.3%	>50%
2030

Loop Solutions

Sustainable-Future Solutions	Status 2025	Target
By 2030, we aim to generate sales of €10 billion from products that contribute to the transition to a circular economy.	€5.8 billion
2024: €5.7 billion	€10 billion
2030

See also E5 Resource Use and Circular Economy

Resource-efficient and safe production

High Severity Process Safety Incidents	Status 2025	Target
We have set ourselves a target of no more than 0.10 High Severity Process Safety Incidents (hsPSI) per 200,000 working hours worldwide by 2030.^{13}	0.04 hsPSI
2024: 0.03 hsPSI	0.10 hsPSI
2030

High Severity Work Process Related Injuries

High Severity Work Process Related Injuries	Status 2025	Target
We have set ourselves a target of no more than 0.05 High Severity Work Process Related Injuries (HSI) per 200,000 working hours worldwide by 2030.^{13}	0.01 HSI
2024: 0.02 HSI	0.05 HSI
2030

Sustainable water management

Sustainable water management	Status 2025	Target
We aim to introduce sustainable water management at our production sites in water stress areas^{14} and at our Verbund sites by 2030.	73%
2024: 65%	100%
2030

Employee engagement and women in leadership positions

Employee engagement	Status 2025	Target
We would like to create a work environment in which more than 80% of our employees feel that they can thrive and perform at their best at BASF.	77%
2024: 79%	>80%
Women in leadership positions
We strive to increase the proportion of women in leadership positions with disciplinary responsibility to 30% worldwide by 2030.^{15}	29.9%
2024: 29.3%	30%
2030

Material Investments and Portfolio Measures

Portfolio management is a key element of our strategy: Our goal is to empower the core businesses and to realize the value of the standalone businesses. In addition, investments remain a significant driver of our targeted profitable growth as well as our green transformation. In this context, we focus on high-growth markets. The establishment of the new Verbund site in Zhanjiang, China, is an important step in achieving these goals.

Material investments

Continuous investments in our plants provide the basis for achieving the organic growth we strive for in our core businesses. We invest in ensuring the safety of our production facilities and securing our license to operate. In addition, we are driving the use of new technologies to enable our own green transformation and that of our customers. At the same time, we are taking measures to increase the efficiency of existing production processes and thereby to improve the profitability and competitiveness of our operations.

For the period 2026 to 2029 we are planning capital expenditures¹ of around €13 billion. Having reached a record level of capital expenditures in 2024, mainly due to the establishment of the Verbund site in Zhanjiang, capital expenditures in 2025 were significantly below the prior-year figure at around €4 billion. For 2026, we anticipate a further decline to around €3 billion; the investment volume is thus expected to be below the level of depreciation and amortization, as planned (for more information on our future investments, see page 88).

In 2025, we focused our investment projects on the expansion of our position in our three key regions: Asia Pacific, North America and Europe. The Asia Pacific region, especially China, is making a significant contribution to the growth of the global chemicals market with a share of almost 70%. We expect that over 80% of growth in the chemical industry will be concentrated in this region by 2035. By establishing our new integrated Verbund site in Zhanjiang we aim to participate in this development and serve the increasing demand from various growth industries in this region. We manufactured the first products from the Verbund there in November 2025. Commissioning of the steam cracker commenced at the end of December 2025. We also continuously invest in the ongoing development of our other Asian sites (see table on page 38).

The expansion of our production capacities in the isocyanates value chain in Geismar, Louisiana, BASF's largest standalone investment in North America, remains on schedule and is set for startup in 2026. This will increase BASF's production capacity for methylene diphenyl diisocyanate (MDI) in North America from 380,000 metric tons per year to around 600,000 metric tons per year.

We are also strengthening our sites in Europe. At the Verbund site in Ludwigshafen, for example, we have started construction of a new production plant for semiconductor-grade sulfuric acid as well as a new plant for electronic-grade ammonium hydroxide. After the planned startups of the plants in 2027, the new capacities are expected to meet the growing demand from the European semiconductor industry while strengthening the resilience of supply chains for the European semiconductor sector.

¹ Additions to property, plant and equipment excluding acquisitions, restoration obligations, IT investments and right-of-use assets arising from leases

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Investments and acquisitions 2025

Million €	Investments	Acquisitions	Total
Intangible assets	122	0	122
of which goodwill	-	-	-
Property, plant and equipmenta	4,562	103	4,665
Total	4,684	103	4,787

a Including restoration obligations, IT investments and right-of-use assets arising from leases

Investments in the segments and regions

In 2025, investments in property, plant and equipment (including restoration obligations, IT investments and right-of-use assets arising from leases) amounted to €4,562 million (2024: €6,506 million). Capex accounted for €4,027 million of this amount (2024: €5,996 million). Our investments in 2025 focused on the Chemicals, Materials and Nutrition & Care segments.

Additions to property, plant and equipmenta by segment in 2025

Additions to property, plant and equipmenta by region in 2025

a Including restoration obligations, IT investments and right-of-use assets arising from leases

BASF Report 2025

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Overview of material investments

Segment	Location	Project	Startup
Chemicals	Ludwigshafen, Germany	Expansion of production capacity of Neopor®	2027
		Modernization of the chloroformates and acid chlorides plant	2026
	Zhanjiang, China	Construction of a new steam cracker and plants for ethylene oxide, syngas, monoethylene glycol, polyethylene, C4 oxo alcohols, acrylic monomers and neopentyl glycol	2025-2026
Materials	Geismar, Louisiana	Capacity expansion at the MDI plants	2026
	Ludwigshafen, Germany	New alcoholates plant (sodium methylate, potassium methylate)	2027
	Dahej, India	Construction of a new production plant for Cellasto®	2026
	Shanghai, China	Construction of a new production plant for Cellasto®	2027
Industrial Solutions	Nanjing, China	Capacity expansion at the additives production plant	2025
	Lampertheim, Germany and Pontecchio Marconi, Italy	Capacity expansion for hindered amine light stabilizers (HALS)	2026
	Ludwigshafen, Germany	Construction of a new production plant for additively manufactured catalysts	2026
		Capacity expansion of polyisobutene plant	2026
		Construction of a new production plant for semiconductor-grade sulfuric acid	2027
		Construction of a new production plant for electronic grade ammonium hydroxid	2027
Nutrition & Care	Bangpakong, Thailand	Construction of a new production plant for alkyl polyglucosides	2025
	Cincinnati, Ohio	Construction of a new production plant for alkyl polyglucosides	2026
	Holthausen, Germany	Construction of a new production plant for multi-purpose reactor, production of emollients and other specialties, mainly for personal care markets	2025-2026
	Ludwigshafen, Germany	Construction of new production plants for menthol and linalool	2026
	Zhanjiang, China	Construction of a new production plant for citral	2026
		Construction of a new production plant for nonionic surfactants	2026
Surface Technologiesa	Münster, Germany	Construction of a new production plant for more sustainable automotive paints	2025
	Würzburg, Germany	Capacity expansion for automotive paints	2025
Agricultural Solutions	Beaumont, Texas and Hannibal, Missouri	Modernization of site infrastructure	2027
	Europeb	Traceability of crop protection products based on digital identification	2025
	Ludwigshafen, Germany	Construction of a new fermentation facility for sustainable crop protection products	2025

a These projects concern investments in discontinued operations.
b This project will be implemented in Genay and Graveline, France, in Ludwigshafen, Germany, and in Tarragona, Spain.

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Portfolio measures

In the context of portfolio management, we want to further strengthen our core businesses through value-adding acquisitions. With regard to our standalone businesses, we are pursuing options to create the greatest value for BASF and its shareholders. To achieve profitable growth, we also intend further expanding our presence in high-growth markets.

Acquisitions

On July 1, 2025, BASF completed the purchase of the 49% stake held by DOMO Chemicals GmbH, Leuna, Germany, in the Alsachimie S.A.S. joint operation in Chalampé, France, which had been announced on May 28, 2025. BASF had held 51% of the joint operation prior to the transaction. Full ownership of Alsachimie enables BASF to optimize backward integration of key raw materials, ensuring supply reliability and efficiency across the polyamide 6.6 value chain.

Divestitures

On March 25, 2025, BASF and Vattenfall announced the sale of BASF's 49% equity share in the Nordlicht 1 and 2 wind farm projects to Vattenfall. The collaboration with Vattenfall will continue, securing BASF a long-term supply of electricity from renewable sources for its chemical production in Europe – at a later point in time when additional green electricity is needed. The transaction resulted in a non-cash-effective loss of €325 million in the first quarter.

Effective April 21, 2025, BASF completed the divestiture of its shares in BASF Markov Chemical Manufacturing (Xinjiang) Co., Ltd. and Markov Meiou Chemical (Xinjiang) Co. Ltd. in Korla, China to Verde Chemical Singapore Pte. Ltd. The companies operated production plants for butanediol and PolyTHF, which were allocated to the Chemicals segment. The assets and liabilities allocated to the disposal group were derecognized in April 2025.

On September 30, 2025, BASF successfully completed the sale of the food and health performance ingredients business to the Louis Dreyfus Company (LDC), Rotterdam, Netherlands. This transaction included the production site in Illertissen, Germany, three application laboratories outside Germany and around 300 employees. The transferred business activities were part of the Nutrition & Health division and include food performance ingredients, health ingredients and several smaller product lines.

After approval by the responsible competition authority, BASF completed the sale of its Brazilian decorative paints business to Sherwin-Williams, Cleveland, Ohio, on October 1, 2025. On a cash and debt-free basis, the purchase price amounted to $1.15 billion (€981 million). The transaction included the Brazilian production sites in Demarchi and Jaboatão, related contracts, the Suvinil and Glasu! brands, and the transfer of approximately 1,000 employees. The decorative paints business, which was part of the Coatings division in the Surface Technologies segment, generated sales of around €485 million in 2024 and operated almost exclusively in Brazil.

Agreed transactions

On October 10, 2025, BASF and Carlyle, Washington D.C., announced they had signed a binding agreement for the sale of BASF's automotive OEM coatings, automotive refinish coatings and surface treatment business units ("coatings"). The enterprise value of the transaction amounts to €7.7 billion. Subject to approval from the relevant regulatory bodies, the transaction is expected to close in the second quarter of 2026. Upon closing, BASF will receive pre-tax cash proceeds of approximately €5.8 billion as well as a 40% equity stake in the new coatings entity, which it will report as a financial investment accounted for using the equity method.

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The business to be divested generated sales of around €3.7 billion in 2025. Owing to the planned divestiture, the affected business units are reported as discontinued operations in accordance with IFRS 5 as of September 30, 2025. From this date, the sales and earnings of the automotive OEM coatings, automotive refinish coatings and surface treatment business units will no longer be part of the sales and EBIT(DA) of the BASF Group or the Surface Technologies segment. Retroactively to January 1, 2025, and until the transaction closes, the income after taxes of these business units is presented in the income after taxes of BASF Group as a separate item (income after taxes from discontinued operations). The 2024 figures have been restated accordingly. The decorative paints business was not affected by this retroactive restatement and remained part of the Surface Technologies segment until the divestiture on October 1, 2025.

On December 16, 2025, BASF and Catexel GmbH, Wiesbaden, Germany, announced that they had signed an agreement to sell BASF's optical brightener business, an ingredient for detergent formulations. The business is currently part of the Care Chemicals division within the Nutrition & Care segment. The transaction involves the international business, including the production of optical brighteners at the Monthey site in Switzerland, as well as around 80 employees. The transaction is expected to close in the first quarter of 2026, subject to the approval of the relevant authorities.

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Combined Management's Report
Consolidated Financial Statements
Further Information

Innovation

Innovations based on chemistry play a pivotal role in overcoming the greatest challenges of our time. Our activities are aimed at improving and developing new products and processes, further increasing our competitiveness and enabling our customers' green transformation.

Innovations are one of the essential factors in BASF's success. The knowledge and skills of our highly qualified employees are our most valuable resources and the source of our innovative strength. In 2025, approximately 9,000 employees (2024: approximately 10,000) worldwide were working in research and development (R&D).¹

<In 2025, we generated sales of around €11 billion (2024: around €11 billion) with products launched on the market in the past five years that stemmed from research and development activities.²> In the long term, we aim to further increase sales and earnings with new and improved products and processes.

Our research and development expenses amounted to €1,995 million in 2025 (2024: €1,969 million). R&D activities in our operating divisions, which are mainly application- and customer-related, accounted for 87% of this figure (2024: 86%). Cross-divisional and strategic topics were responsible for 13% (2024: 14%) of these expenses.³

Our innovation focus encompasses the development of new products and solutions as well as product and process improvements that ensure our long-term competitiveness and enable our customers' green transformation. Another focus is on innovation for more sustainable agriculture.

By using resources more efficiently, manufacturing our products in a more environmentally friendly way and helping to recycle them, we support our customers in reducing their carbon footprint. At the same time, we contribute to decoupling growth from the consumption of limited resources. In the area of electromobility, we develop materials for batteries and electric powertrains in close cooperation with vehicle manufacturers to enable safer and more efficient driving. We are also driving forward innovative technologies in catalyst manufacturing that enable customized, particularly high-performance catalysts to be produced. To help farmers control resistant weeds, we are investing in the development of herbicide-tolerant cotton traits. In addition, we are working on novel production processes that significantly improve the manufacturing of detergent enzymes. We are researching circular solutions for textiles, biodegradable polymers for home and personal care applications, as well as biodegradable UV absorbers for sunscreens, thus supporting our customers in achieving their sustainability goals. At the same time, we are working on new process innovations such as methane pyrolysis, a virtually emission-free process for producing hydrogen (see page 186).

Our research and development units explicitly address the industry-specific needs of our customers. Customer-focused activities are directly integrated into the operating divisions. Research activities that are relevant to several operating divisions are bundled in the cross-functional global division Group Research, which supports the R&D activities of the operating divisions. Corporate funding is used to finance Group Research projects that are of strategic relevance to the BASF Group and go beyond the industry-specific focus of the individual operating divisions. These include process innovations for our green transformation, the circular economy of our products, as well as digital tools. The unit is globally positioned with research centers in Asia Pacific, Europe and North America. Together with the research and development units in our operating divisions, Group Research forms the core of our global Research and Development Verbund.

¹ Number of employees including employees of the discontinued coatings business
² Sales from the discontinued coatings business are not included in the figure for the 2025 business year. Its sales are included in the prior-year figure.
³ The discontinued coatings business is not included in the disclosures on our R&D expenses in the 2025 business year and the previous year.

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Further Information

The number and quality of our patents demonstrate our innovative power and our long-term competitiveness. In 2025, we filed 898 new patents worldwide (2024: 1,159). Of these, 45% (2024: 44.5%) were for innovations with a particular focus on sustainability. The Patent Asset Index, a method that compares patent portfolios, once again ranked us among the leading companies in the chemical industry in 2025.⁴

Our global research and development presence – and its effectiveness – is vital to our long-term success. This enables us to respond to the needs and requirements of the regional markets in a differentiated way, establish strong customer relationships and leverage potential in growth markets.

The largest site in our Research and Development Verbund is Ludwigshafen in Germany. There we work on a variety of overarching research topics.

Innovation Campus Shanghai, China, is our largest research and development site in Asia Pacific. Here, we work on new products and processes for a variety of customer industries, including in growing sectors such as electromobility and renewable energies. Innovation Campus Mumbai, India, with its research focus areas of crop protection, process development, specialty chemicals and analytics, represents a key pillar of our growing research network in the Asia Pacific region.

At our largest research and development site in North America, Research Triangle Park, North Carolina, we work on new crop protection products. At the Biodegradation and Microplastics Center of Excellence in Wyandotte, Michigan, our teams research the biodegradability of materials and solutions for the circular economy.

Our global network of top universities, research institutes and companies gives us direct access to external scientific expertise, talented minds from various disciplines as well as new technologies. This strengthens our Research and Development Verbund and makes BASF an even more attractive partner and employer. (In 2025, we collaborated with multiple companies as well as with 269 (2024: 260) universities and research institutes.)

⁴ The discontinued coatings business is not included in the patent figures for 2025. Its patents are included in the prior-year figure.

⁵ The figure for 2025 excludes the discontinued coatings business. The prior-year value includes collaborations of the discontinued business.

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1.2 BASF Group’s Business Year

Economic Environment¹

Global economic growth remained stable in 2025 despite major trade policy uncertainties. This was supported by significant frontloading effects on exports to the United States, which supported growth in Europe and Asia. In the chemical industry, global growth amounted to 3.6%. The regional differences in growth rates were even greater than in previous years, with positive contributions to global chemical growth coming almost exclusively from China. In Europe, on the other hand, production declined by 2%.

At a glance
+2.9%	+3.6%
Global GDP growth	Increase in global chemical production

Global gross domestic product (GDP) grew by 2.9% compared with the previous year (2024: 2.8%). Global industrial production rose by 2.9% (2024: 2.0%). Global chemical production grew by 3.6% (2024: 4.2%). While chemical production in China increased by 7.0%, it decreased by 0.2% in the rest of the world.

The average price of Brent crude oil remained considerably below the prior-year level at $69 per barrel (previous year: $81 per barrel). The annual average gas price in Northwestern Europe was €36.17 per MWh or $11.88 per mmBtu (2024: €34.17 per MWh or $10.83 per mmBtu), more than three times as high as in the United States (2025: €10.65 per MWh or $3.52 per mmBtu, 2024: €6.93 per MWh or $2.20 per mmBtu).

Trends in the Global Economy in 2025

In the European Union (EU), GDP growth at 1.6% was slightly higher than the previous year (1.0%). Industrial production increased only slightly, by 1.3%.

Within the EU, there were significant differences in growth between member states. While GDP in Spain grew by almost 3% and both private consumption and investment increased significantly, growth in France and Italy remained below 1%. In both countries, private consumption expenditures and investments were weak. Ireland contributed around 0.4 percentage points to total EU growth with dynamic growth of more than 10%, mainly due to strong growth in the pharmaceutical industry there.

Germany largely stagnated again in 2025, mainly due to declining investment and a deteriorating trade balance. German GDP was thus roughly at the level of 2019, while GDP in the rest of the eurozone grew by almost 9% during this period.

¹ All information relating to past years in this chapter can deviate from the previous year’s report due to statistic revisions. Where available, calendar-adjusted macroeconomic growth rates are reported. Figures for 2025 not yet available in full are estimated.

BASF Report 2025

BASF Group’s Business Year | 43

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In the eastern EU countries, growth was just over 2%. In Poland, the economy grew comparatively strongly at more than 3%, driven primarily by strong private consumption and increasing government spending. Growth in the Czech Republic was also above average at 2.6%, while the Hungarian economy almost stagnated against a backdrop of high inflation rates and weak domestic demand.

In the United Kingdom, GDP grew by 1.3%, roughly the same as in the EU, as households' purchasing power and willingness to consume increased, falling lending rates supported investment expenditure and government spending expanded more strongly than in the previous year.

In the United States, economic growth declined compared to 2024 (2.8%), but remained high compared to the EU at 2.3%. Development in the first two quarters was characterized by frontloading effects and the associated strong fluctuations in the trade balance. Private consumption proved to be rather stable because cost increases due to higher import tariffs and the weaker dollar were not initially passed on in full, and rising stock prices strengthened the propensity of private households to spend. Momentum in capital expenditure, especially in the artificial intelligence sector, was also high. The construction sector, on the other hand, remained weak against the backdrop of high interest rates and construction costs. Overall, industrial production largely stagnated in 2025, as declining construction activity was accompanied by weak growth in the manufacturing sector.

In China, the official growth target of 5.0% was achieved. However, private consumption lagged slightly behind the macroeconomic growth rate. Exports, on the other hand, continued to grow significantly, as declining exports to the United States were more than offset by higher exports to other regions, especially to the ASEAN countries. Industrial production increased by 5.6% overall. Once again, the manufacturing sector grew at a faster rate than the industry as a whole, at 6.4%, as the ongoing crisis in residential construction dampened the overall industrial growth rate.

India's GDP grew at a high rate of 7.5%. Private consumption and investment grew at a similar pace. Industrial production (6.4%) and especially production in the manufacturing sector (around 4%) lagged behind the overall trend. In the ASEAN countries, overall growth remained at the prior-year level at 4.8%. Vietnam in particular benefited from high demand, especially for electronic products, and grew by 8%.

Growth in mature Asian markets lagged behind the emerging markets in the region. In South Korea and Japan, economic growth was only around 1%. While growing exports supported GDP, private consumption increased only moderately in both countries. Furthermore, in South Korea, investments declined significantly.

Overall, GDP in South America rose by 2.8%, slightly more than in the previous year (2.0%). Following declines in GDP in the two previous years, Argentina's economy grew significantly by 4.3% in 2025, driven by fundamental economic reforms. In Brazil, growth momentum slowed down after a strong start to the year with high growth contributions from the agricultural and service sectors. Private consumption grew only marginally in an environment of high inflation rates and rising central bank interest rates, and investment momentum also slowed compared to the previous year. While industrial production increased only moderately, agricultural production rose significantly after a decline in the previous year. Thus, South America's largest economy recorded moderate growth of 2.5%.

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Gross domestic product

Real change compared with previous year	2025	2024
World	2.9%	2.8%
European Union	1.6%	1.0%
USA	2.3%	2.8%
China	5.0%	5.0%
Emerging markets of Asia excluding China^{a}	5.9%	5.4%
Japan	1.2%	-0.2%
South America	2.8%	2.0%

a We define the emerging markets of Asia as the ASEAN countries (Brunei, Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam), India, Pakistan and Bangladesh.

Trends in Key Customer Industries

In 2025, global industrial production expanded more strongly than in the previous year and was as high as the growth rate of global gross domestic product. In the chemical industry's customer industries, growth was very weak in the construction industry and in consumer durables, while the automotive industry and health and nutrition grew moderately. Particularly high growth was recorded in the electrical and electronics industry.

Global industrial production expanded by 2.9% overall (2024: 2.0%). In advanced economies, growth was weak (2025: 0.6%, 2024: -0.7%), while the emerging markets saw growth of 4.7% (2024: 4.1%). In the EU, industrial production increased by 1.3%; in North America, it stagnated, and in Asia it grew by 4.8% overall. More than 80% of global industrial growth was achieved in Asia.

Growth in key customer industries

Real change compared with previous year	2025	2024
Industry total	2.9%	2.0%
Transportation	3.3%	0.1%
of which automotive industry	3.7%	-1.0%
Energy and resources	3.6%	1.6%
Construction	0.4%	1.5%
Consumer goods	1.9%	1.4%
Electronics	9.1%	7.5%
Health and nutrition	4.1%	2.3%
Agriculture	3.5%	2.3%

In 2025, global automotive production increased by 3.7% from 89.6 to 92.9 million passenger cars and light commercial vehicles. In China, the world's largest automotive market, production increased by 10.4%. In the EU and in North America, production fell by around 1%. In South Korea, too, production fell slightly by 0.6%, while in Japan it increased by 1.3%. Growth in the global production of battery electric vehicles (BEVs) was significantly higher than that of the market as a whole: A total of 3.3 million more BEVs were produced, which corresponds to growth in this segment of around 28.9% compared with the previous year. Consequently, electric vehicles' share of all vehicles produced rose from around 13% in 2024 to approximately 16% in 2025.

The energy and resources sector expanded by 3.6%, more strongly than in the previous year (1.6%). The production of non-energy raw materials grew faster than the production of energy raw materials and was also significantly stronger than in the previous year. Oil and gas production also expanded again following a decline in the previous year, especially in the Middle East.

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Growth in the construction industry was low. Overall, construction activity increased by only 0.4%. While residential construction declined by 1.7%, commercial building construction almost stagnated. In contrast, the infrastructure segment grew by around 3%. In the EU, the construction volume increased slightly. While infrastructure construction increased moderately, building construction stagnated. In the United States, in contrast, both residential construction and nonresidential construction declined significantly, after these segments had grown significantly in the previous year. Infrastructure construction in the United States largely stagnated. In China, construction activity in residential construction continued to decline significantly, while it shrank slightly in nonresidential construction. In the infrastructure segment, construction activity again increased significantly. Overall, the Chinese market declined slightly.

After stagnating in the previous year, consumer goods production increased by 1.9% in 2025, lagging behind global GDP growth. However, growth rates developed very differently in the individual segments: In the furniture industry, production fell slightly after having almost stagnated in the previous year. In the textile industry, growth was below average and declined slightly compared to the previous year. Growth in the production of chemicals for the manufacture of care products was also weak.

The electronics industry expanded even faster than in the previous year, by around 9%, with high growth rates in semiconductors, communication electronics and consumer electronics.

Production in the health and nutrition sector increased by more than 4%. While the food industry recorded below-average growth similar to the previous year, the pharmaceutical industry grew significantly stronger than global GDP. In the food industry, growth in Europe and North America remained weak overall, while in Asia it was well above the global average. In contrast, the higher growth in the pharmaceutical industry was strongly influenced by Europe, with very high growth rates in Ireland.

At 3.5%, growth in the agricultural sector was above the level of the previous year. Almost 90% of the growth came from the Asia Pacific region, where weather conditions were better than in the previous year. Production in China and India, the region's two largest producers, increased by 5.0% and 3.8% respectively. Production also increased significantly in South America, mainly due to recovery effects after the flood-related crop failures in Brazil in the previous year. In the EU, production increased by only 1.4%. In North America, however, production declined, partly due to decreasing demand from China due to the trade conflict with the United States.

Trends in the Chemical Industry

Growth in the global chemical industry in 2025 totaled 3.6%, considerably outpacing overall industrial production. However, regional differences were significant: While the chemical industry in China grew by around 7.0%¹ on the basis of official figures, it declined by 0.2% in the rest of the world.

Chemical production in the EU declined significantly overall after an increase due to frontloading effects at the beginning of the year. Production in the EU declined by around 2% on average for the year. In Germany, the decline was even more pronounced at 3.3% due to weak domestic demand.

In the United Kingdom, chemical production decreased by 3.5% (2024: increase by 0.5%).

¹ Our own estimate of the growth rate, based on official statistics from China for the overall market and individual products

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In the United States, development in chemical production remained significantly positive for some time due to a weak prior-year basis. However, the average annual growth rate was only 1.3% due to overall weak industrial demand.

In Asia, chemical production increased by 5.5%, similar to the previous year (5.6%). China, the world's largest chemicals market, grew by 7.0% overall and thus slightly faster than domestic industry.² In India, production declined by 1.3%. Average production in other countries of the region also declined slightly.

In the Middle East, chemical production increased by only around 1% overall. Growth of almost 5% in Saudi Arabia was offset by a decline of around 13% in Israel.

Chemical production (excluding pharmaceuticals)

Real change compared with previous year	2025	2024
World	3.6%	4.2%
European Union	-2.1%	2.2%
USA	1.3%	0.2%
China³	7.0%	6.8%
Emerging markets of Asia excluding China	0.7%	3.0%
Japan	-0.8%	-3.5%
South America	1.2%	1.6%

a Our own estimate of the growth rate, based on official statistics from China for the overall market and individual products

Price Trends for Key Commodities

Against the backdrop of oil production, both from OPEC countries and from North and South America, growing faster than demand, Brent North Sea crude prices fell from an average price of $72 per barrel in the first half of 2025 to $64 per barrel in the fourth quarter. The annual average price was $69 per barrel, below the price of the previous year ($81 per barrel). The average monthly price for the chemical raw material naphtha was $567 per metric ton, around 14% below the previous year ($656 per metric ton).

At €36.17 per MWh ($11.88 per mmBtu), gas prices in Northwestern Europe in 2025 were slightly above the prior-year level (€34.17 per MWh or $10.83 per mmBtu). The average price of gas in the United States was $3.52 per mmBtu, higher than in the previous year ($2.20 per mmBtu). In China, gas prices averaged around $13.24 per mmBtu nationally (2024: $13.13 per mmBtu).

² Our own estimate of the growth rate, based on official statistics from China for the overall market and individual products

BASF Report 2025

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Results of Operations

In the 2025 business year, sales stood at €59,657 million, compared with €61,444 million in the previous year. Negative currency effects, mainly relating to the U.S. dollar, the Chinese renminbi and the Brazilian real, had a significant impact on sales. In a competitive market environment, prices fell in almost all segments; only the Surface Technologies and Nutrition & Care segments achieved price increases compared to the previous year. A significant increase in volumes in the Surface Technologies segment and slight volume growth in the Agricultural Solutions and Materials segments more than compensated for lower volumes in the Nutrition & Care, Industrial Solutions and Chemicals segments.

Sequential development of sales

Factors influencing BASF Group sales

	Change in million €	Change in %
Volumes	940	1.5
Prices	-1,066	-1.7
Currencies	-1,864	-3.0
Acquisitions	-	-
Divestitures	-349	-0.6
Changes in the scope of consolidation	552	0.9
Total change in sales	-1,787	-2.9

EBITDA before special items² decreased by €686 million year on year to €6,554 million. This development resulted from the significant decline in earnings in the core businesses: EBITDA before special items declined in the Chemicals, Industrial Solutions, Materials and Nutrition & Care segments, mainly due to lower contribution margins; slightly higher fixed costs also dampened earnings in the Materials segment. Higher earnings in the standalone businesses partially offset the decline in the core businesses: The Surface Technologies segment improved EBITDA before special items mainly due to the significant increase in ECMS earnings as a result of fixed cost savings and reimbursements of production costs. In the Agricultural Solutions segment, earnings increased mainly due to an improved contribution margin. Earnings from Other decreased slightly compared to the previous year.

The EBITDA margin before special items was 11.0% compared with 11.8% in the previous year.

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Sequential development of EBITDA before special items

EBITDA³ amounted to €5,618 million following €6,211 million in the prior-year period.

Special items⁴ in EBITDA amounted to -€936 million in 2025. Special charges of €937 million for restructuring measures were incurred primarily in connection with the ongoing cost savings programs, particularly for the program focused on the Ludwigshafen site. Other charges and income of -€651 million mainly included expenses in connection with the sale of BASF's shares in the Nordlicht 1 and 2 wind farm projects and the conversion of the ERP system. Special income from divestitures, which mainly included gains from the sale of the Brazilian decorative paints business and from the food and health performance ingredients business had an offsetting effect (for further information, see the Notes to the Consolidated Financial Statements from page 318 onward).

Special items

Million €	2025	2024
Restructuring measures	-937	-521
Integration costs	9	2
Divestitures	643	-11
Other charges and income	-651	-500
Total special items in EBITDA	-936	-1,030
Impairments and reversals of impairments in special items	-318	-683
Total special items in EBIT	-1,253	-1,713

EBIT came in at €1,634 million, down on the prior-year figure by €176 million (for more information, see the Statement of Income on page 302). Depreciation and amortization⁵ included in EBIT amounted to €3,984 million (previous year: €4,400 million). This included impairments of €404 million (including special items of €318 million), mainly in the Chemicals segment. In the prior year, impairments reported in EBIT amounted to €753 million, of which €683 million had been recognized as special items.

We use the indicator return on capital employed (ROCE) to measure our rate of return. In 2025, ROCE was 5.8% (2024: 5.1%; for more information, see page 29 onward).

BASF Report 2025

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ROCE

Million €	2025	2024
EBIT BASF Group	1,634	1,810
– EBIT Other	-1,891	-1,328
EBIT of the segments	3,525	3,138
Cost of capital basis of segments, average of month-end figures	60,500	61,478
ROCE	5.8	5.1

Capital employed

Million €	2025	2024
Intangible assets	9,917	10,577
+ Property, plant and equipment	24,297	23,348
+ Integral companies accounted for using the equity method	1,383	1,614
+ Inventories	12,689	13,229
+ Accounts receivable, trade	9,956	10,553
+ Current and noncurrent other receivables and other assetsa	2,003	2,144
+ Assets of disposal groups	254	13
Cost of capital basis of segments, average of month-end figures	60,500	61,478
+ Deviation from balances as of December 31	-2,847	-709
+ Assets not included in cost of capital basis	18,521	19,647
Assets of the BASF Group as of December 31	76,174	80,415

a Including customer/supplier financing and other adjustments

Net Income from Shareholdings, Financial Result and Income after Taxes

The year-on-year increase in net income from shareholdings of €711 million was mainly due to the €655 million improvement in earnings of non-integral companies, accounted for using the equity method. This increase was due to net special income of €1,338 million, mainly in connection with reimbursements to Wintershall Dea GmbH, Kassel, Germany, arising from the federal guarantees for expropriated assets in Russia. In the prior year, special income of €390 million was incurred in connection with the transfer of assets from Wintershall Dea to Harbour Energy plc, London, United Kingdom.

The financial result improved by €52 million compared to the previous year, mainly due to lower net interest expenses from defined benefit plans and similar obligations in other financial results. The level of the interest result was almost the same as the previous year.

Overall, income before income taxes rose by €586 million in 2025 compared with the previous year to €2,447 million. Income tax expenses came in at €907 million (previous year: €573 million). The tax rate for 2025 was 37.1%, compared with 30.8% in the previous year. The relatively high tax rate in both years was mainly due to the nonrecognition of deferred tax assets on loss carryforwards. In addition, the disposal gain from the sale of the decorative paints business in Brazil was taxed at 34%.

Income after taxes from continuing operations amounted to €1,540 million (previous year: €1,288 million).

Income after taxes from discontinued operations, which included the business activities of automotive OEM coatings, automotive refinish coatings and surface treatment, which are planned for sale, amounted to €185 million (previous year: €165 million). The increase primarily resulted from higher income from operations, which in the previous year had been dampened by special expenses.

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Income attributable to noncontrolling interests decreased by €48 million to €107 million, mainly due to lower earnings contributions from BASF TotalEnergies Petrochemicals LLC, Houston, Texas. Overall, this resulted in a net income of €1,619 million.

Earnings per share for 2025 amounted to €1.82 (previous year: €1.45).

Further Indicators of Results of Operations

We are using our most important financial key performance indicators, EBITDA before special items and free cash flow, to steer the BASF Group in the short and medium term, (for more information, see page 29 onward). These are alternative performance measures (APMs) that are not defined by IFRS® Accounting Standards. As such, the methods of calculation may differ from those used by other companies.

Other alternative performance measures that we provide for investors, analysts and rating agencies to assess our performance include EBITDA, EBITDA margin before special items, adjusted earnings per share as well as net debt and capital expenditure (for more information, see page 56 and 36 onward).

EBITDA before special items

Million €	2025	2024
EBIT	1,634	1,810
- Special items	-1,253	-1,713
EBIT before special items	2,887	3,523
+ Depreciation and amortization	3,580	3,647
+ Impairments and reversals of impairments on property, plant and equipment and intangible assets before special items	86	70
Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets before special items	3,667	3,717
EBITDA before special items	6,554	7,240
Sales	59,657	61,444
EBITDA margin before special items %	11.0	11.8

EBITDA

Million €	2025	2024
EBIT	1,634	1,810
+ Depreciation and amortization	3,580	3,647
+ Impairments and reversals of impairments on property, plant and equipment and intangible assets	404	753
Depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets	3,984	4,400
EBITDA	5,618	6,211

Compared with earnings per share, adjusted earnings per share is adjusted for special items as well as amortization, impairments and reversals of impairments on intangible assets. Amortization of intangible assets primarily results from the purchase price allocation following acquisitions and is therefore of a temporary nature. The effects of these adjustments on income taxes and on noncontrolling interests are also considered. This makes adjusted earnings per share a suitable measure for making comparisons over time and predicting future profitability.

In 2025, adjusted earnings per share amounted to €2.24 (previous year: €3.51).

BASF Report 2025

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Adjusted earnings per share

Million €	2025	2024
Income after taxes	1,726	1,453
- Special itemsa	108	-1,327
+ Amortization, impairments and reversals of impairments on intangible assets	398	565
- Amortization, impairments and reversals of impairments on intangible assets contained in special items	1	61
- Adjustments to income taxes	48	196
- Adjustments to income after taxes from discontinued operations	-147	-227
Adjusted income after taxes	2,113	3,315
- Adjusted noncontrolling interests	116	183
Adjusted net income	1,997	3,132
Weighted average number of outstanding sharesb	in thousands	891,742
Adjusted earnings per share	€	2.24

a Includes special items in net income from shareholdings and in financial result of €1,361 million in the 2025 business year and €386 million in the 2024 business year.
b Due to the share buyback program started in November 2025, the weighted average number of outstanding shares in the 2025 business year was 891,742,093 and 892,522,164 in the 2024 business year.

Sales and earnings

Million €		2025	2024	+/-
Sales		59,657	61,444	-2.9%
EBITDA before special items		6,554	7,240	-9.5%
Special items in EBITDA		-936	-1,030	9.1%
EBITDA		5,618	6,211	-9.5%
EBITDA margin before special items	%	11.0	11.8	.
Depreciation and amortizationc		3,984	4,400	-9.5%
EBIT before special items		2,887	3,523	-18.1%
Special items in EBIT		-1,253	-1,713	-26.8%
EBIT		1,634	1,810	-9.7%
Income before income taxes		2,447	1,861	31.5%
Income after taxes		1,726	1,453	18.8%
Net income		1,619	1,298	24.7%
Earnings per share	€	1.82	1.45	25.1%
Adjusted earnings per share	€	2.24	3.51	-36.6%

a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments), excluding depreciation and amortization, impairments or reversals of impairments attributable to the discontinued coatings business; previous year's figures have been restated

BASF Report 2025

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Sales and earnings by quarter 2025ᵃ

Million €	Q1	Q2	Q3	Q4	Full year
Sales	16,509	14,788	14,328	14,032	59,657
EBITDA before special items	2,495	1,595	1,430	1,033	6,554
Special items in EBITDA	-425	-273	-223	-15	-936
EBITDA	2,070	1,323	1,207	1,019	5,618
EBITDA margin before special items %	15.1	10.8	10.0	7.4	11.0
Depreciation and amortizationᵇ	910	927	976	1,171	3,984
EBIT before special items	1,592	686	533	76	2,887
Special items in EBIT	-432	-291	-301	-229	-1,253
EBIT	1,160	395	232	-153	1,634
Income before income taxes	1,013	221	140	1,073	2,447
Income after taxes	837	108	202	579	1,726
Income after taxes from continuing operations	818	28	169	525	1,540
Income after taxes from discontinued operations	19	80	32	54	185
Net income	808	79	172	560	1,619
Earnings per share	0.91	0.09	0.19	0.63	1.82
of which from continuing operations	0.89	0.01	0.16	0.57	1.63
Adjusted earnings per share	1.57	0.48	0.52	-0.34	2.24
of which from continuing operations	1.49	0.35	0.46	-0.41	1.89

ᵃ Quarterly results not audited
ᵇ Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)

Sales and earnings by quarter 2024ᵃ

Million €	Q1	Q2	Q3	Q4	Full year
Sales	16,615	15,151	14,816	14,863	61,444
EBITDA before special items	2,541	1,788	1,478	1,434	7,240
Special items in EBITDA	-34	-357	-315	-325	-1,030
EBITDA	2,507	1,431	1,163	1,109	6,211
EBITDA margin before special items %	15.3	11.8	10.0	9.6	11.8
Depreciation and amortizationᵇ	909	988	971	1,532	4,400
EBIT before special items	1,639	859	545	480	3,523
Special items in EBIT	-41	-416	-354	-903	-1,713
EBIT	1,598	443	191	-423	1,810
Income before income taxes	1,683	328	516	-666	1,861
Income after taxes	1,411	470	343	-770	1,453
Income after taxes from continuing operations	1,341	414	302	-769	1,288
Income after taxes from discontinued operations	69	56	41	-2	165
Net income	1,368	430	287	-786	1,298
Earnings per share	1.53	0.48	0.32	-0.88	1.45
of which from continuing operations	1.46	0.42	0.28	-0.87	1.29
Adjusted earnings per share	1.11	1.50	0.32	0.59	3.51
of which from continuing operations	0.99	1.38	0.23	0.51	3.09

ᵃ Quarterly results not audited
ᵇ Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments), excluding depreciation and amortization, impairments or reversals of impairments attributable to the discontinued coatings business

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Net Assets

Assets

Million €	December 31, 2025	December 31, 2024
Intangible assets	9,692	11,983
Property, plant and equipment	25,405	27,197
Integral investments accounted for using the equity method	1,746	2,399
Non-integral investments accounted for using the equity method	3,247	3,411
Other financial assets	1,055	1,165
Deferred tax assets	544	574
Receivables for income taxes	97	88
Other receivables and miscellaneous assets	2,702	2,366
Noncurrent assets	44,489	49,183
Inventories	12,168	13,681
Accounts receivable, trade	8,325	10,393
Receivables for income taxes	696	740
Other receivables and miscellaneous assets	3,762	3,256
Marketable securities	89	67
Cash and cash equivalents	2,670	2,914
Assets of disposal groups	3,973	181
Current assets	31,684	31,232
Total assets	76,174	80,415

Total assets amounted to €76,174 million as of December 31, 2025, around €4.2 billion below the prior year-end figure.

Noncurrent assets decreased by €4,694 million compared to the prior year-end figure, mainly as a result of reclassifications to the disposal group for the assets of the planned divestiture of the automotive OEM coatings, automotive refinish coatings and surface treatment business units (coatings disposal group) and currency effects. The decline in intangible assets was €2,290 million, of which €1,069 million was due to transfers to the disposal group and €740 million due to currency effects. Furthermore, amortization exceeded additions by €354 million.

The €1,792 million decline in property, plant and equipment was mainly due to negative currency effects (€1,569 million) and the reclassification of assets to the coatings disposal group (€1,042 million). This was offset by additions to property, plant and equipment of €4,665 million, which exceeded depreciation of €3,686 million. This included impairments of €414 million, mainly in the Chemicals segment.

The carrying amounts of the integral investments accounted for using the equity method decreased by €653 million compared to December 31, 2024, mainly due to the sale of BASF's shares in the Nordlicht 1 and 2 wind farm projects. The reason for the €164 million lower carrying amount of the non-integral investments accounted for using the equity method was primarily the lower carrying amount of Harbour Energy plc, London, United Kingdom, particularly as a result of currency effects and dividend payments. The carrying amount of Wintershall Dea was higher than at the end of the previous year, mainly due to positive income after tax; this was offset by dividend payments received.

The increase in noncurrent other receivables and miscellaneous assets of €336 million was largely attributable to higher defined benefit assets.

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Current assets rose by €452 million to €31,684 million compared with the prior year-end.

Inventories declined by €1,513 million, mainly due to currency effects (€679 million) and transfers to the coatings disposal group (€535 million). The €2,068 million decline in trade accounts receivable was also mainly driven by reclassifications to the coatings disposal group (€764 million) and currency effects (€684 million).

Other receivables and miscellaneous assets increased by €506 million, mainly because of higher precious metal trading positions. Cash and cash equivalents were €243 million below the figure as of December 31, 2024.

The assets of disposal groups amounted to €3,973 million and included the assets of coatings. As of December 31, 2024, this figure included in particular the assets allocated to the food and health performance ingredients business, which was divested on September 30, 2025.

For more information on the composition of individual balance sheet items and their development, see the Notes to the Consolidated Financial Statements from page 309 onward.

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Financial Position

Equity and liabilities

Million €	December 31, 2025	December 31, 2024
Subscribed capital	1,142	1,142
Capital reserves	3,131	3,139
Retained earnings	29,931	30,883
Other comprehensive income	-1,009	435
Noncontrolling interests	1,143	1,284
Equity	34,338	36,884
Provisions for pensions and similar obligations	1,832	2,403
Deferred tax liabilities	953	1,005
Income tax provisions	401	335
Other provisions	1,854	1,883
Financial indebtedness	18,481	19,122
Other liabilities	1,903	1,744
Noncurrent liabilities	25,424	26,492
Accounts payable, trade	5,484	6,923
Provisions	3,693	3,320
Liabilities for income taxes	213	404
Financial indebtedness	2,608	2,639
Other liabilities	3,405	3,714
Liabilities of disposal groups	1,008	39
Current liabilities	16,411	17,039
Total equity and liabilities	76,174	80,415

Equity stood at €34,338 million, around €2,546 million below the figure as of December 31, 2024. Retained earnings declined by €952 million compared with the end of the previous year. Dividend payments to the shareholders of BASF SE of around €2 billion as well as share buybacks of €355 million were countered by a net income of €1,619 million. Other comprehensive income decreased by €1,444 million, mainly due to negative currency effects (€2,409 million); actuarial gains partially offset this.

At 45.1%, the equity ratio was slightly below the prior-year level (45.9%).

Noncurrent liabilities decreased by €1,068 million compared with the end of the previous year. Provisions for pensions and similar obligations decreased by €571 million, mainly due to higher interest rates; transfers to the coatings disposal group amounted to around €200 million.

Reclassifications to the disposal group were also a major factor in the €52 million decrease in deferred tax liabilities.

Other noncurrent provisions were almost at prior-year level. The reclassifications to the disposal group and to current provisions were almost completely offset by higher provisions, particularly for employee obligations.

The €642 million decrease in noncurrent financial indebtedness resulted primarily from the reclassification of two eurobonds with a combined carrying amount of around €1.5 billion and liabilities to banks of around €650 million from noncurrent to current financial indebtedness, the repayment of a €500 million loan, and interest and currency effects of around €330 million. By contrast, in China, a further €2.1 billion of the credit line for the construction of the Verbund site there was utilized and two new CNY bonds with a total equivalent value of around €360 million were issued.

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Other noncurrent liabilities rose by €158 million compared with year-end 2024, mainly due to higher negative fair values of derivatives.

Current liabilities were €628 million below the 2024 year-end figure. The €1,438 million decline in trade accounts payable compared with the end of the previous year included reclassifications to the coatings disposal group amounting to €305 million.

By contrast, current provisions increased by €374 million, primarily due to higher provisions for restructuring measures and for variable compensation components.

Current financial indebtedness amounting to €2,608 million was almost at prior-year level: The scheduled repayment of four bonds and a private placement with a total carrying amount of around €1.7 billion, as well as the repayment of bank loans totaling around €360 million, were offset by the aforementioned reclassifications of around €2.2 billion.

The main reason for the €309 million decrease in other liabilities was the settlement of the liability relating to the aqueous film-forming foam multidistrict litigation in the United States in the first quarter of 2025.

Liabilities of the coatings disposal group stood at €1,008 million.

Net debt amounted to €18,329 million on December 31, 2025, and was therefore €452 million below the prior year-end figure.

For more information on the composition and development of individual balance sheet items, see the Notes to the Consolidated Financial Statements from page 309 onward.

Net debt

Million €	December 31, 2025	December 31, 2024
Noncurrent financial indebtedness	18,481	19,122
+ Current financial indebtedness	2,608	2,639
Financial indebtedness	21,088	21,762
- Marketable securities	89	67
- Cash and cash equivalents	2,670	2,914
Net debt	18,329	18,781

Off-Balance Sheet Obligations

Off-balance sheet obligations amounting to €26 billion (2024: €29 billion) mainly relate to long-term purchase obligations for raw materials and long-term supply agreements for electricity from renewable sources (for more information, see the Notes to the Consolidated Financial Statements on page 389 and from page 393 onward). In addition, obligations exist in connection with initiated or planned investment projects amounting to €4 billion (2024: €7 billion). The decrease resulted mainly from lower obligations in connection with the construction of the new Verbund site in Zhanjiang, China.

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Financing Policy and Credit Ratings

Our financing policy aims to ensure our solvency at all times, limiting the risks associated with financing and optimizing our cost of capital. We preferably meet our external financing needs on the international capital markets.

BASF strives for a single A credit rating, which gives us unrestricted access to financial and capital markets. Our financing measures are aligned with our operational business planning as well as the company's strategic direction and also ensure the financial flexibility to take advantage of strategic options.

Maturities of financial indebtedness

BASF enjoys good credit ratings, especially compared with competitors in the chemical industry. Fitch confirmed its credit rating of A/F1/outlook stable on February 13, 2026. Moody's maintained its credit rating of A3/P-2/outlook stable on January 28, 2026. Standard & Poor's confirmed its credit rating of A-/A-2/outlook stable on December 12, 2025.

We have solid financing, both for ongoing business and for investment projects initiated or planned. Corporate bonds form the basis of our medium to long-term debt financing. These are issued in euros and other currencies with different maturities as part of our €20 billion debt issuance program. The goal is to create a balanced maturity profile, diversify our financing and optimize our debt capital financing conditions.

For short-term financing, we use BASF SE's global commercial paper program, which has an issuing volume of up to $12.5 billion. As of December 31, 2025, no commercial paper was outstanding under this program. A firmly committed, syndicated credit line of €6 billion with a term until 2030 covers the repayment of outstanding commercial paper. It can also be used for general company purposes. This credit line was not used at any point in 2025. In 2023, BASF Integrated Site (Guangdong) Co. Ltd., Zhanjiang, China, signed a syndicated bank term loan facility totaling 40 billion Chinese renminbi with a maturity of 15 years for the construction of the Verbund site in Zhanjiang. Of this amount, 34 billion Chinese renminbi (€4.2 billion) was utilized as of December 31, 2025. Our external financing is largely independent of short-term fluctuations in the credit markets.

BASF Group's most important financial contracts contain no side agreements with regard to specific financial ratios (financial covenants) or compliance with a specific rating (rating trigger). To minimize risks and leverage internal optimization potential within the Group, we bundle the financing, financial investments and foreign currency hedging of BASF SE's subsidiaries within the BASF Group where possible. Foreign currency risks are primarily hedged centrally using derivative financial instruments in the market.

BASF Report 2025

BASF Group's Business Year

Our interest risk management generally pursues the goal of reducing interest expenses for the BASF Group and limiting interest risks. Interest rate hedging transactions are therefore conducted with banks in order to turn selected liabilities to the capital market from fixed to variable interest rates or vice versa (for more information, see the Notes to the Consolidated Financial Statements on pages 373 and 389).

Statement of Cash Flows

Cash flows from operating activities amounted to €5,610 million in the 2025 business year, €1,336 million below the prior-year figure. The increased net income in 2025 included significantly higher noncash and reclassification items than in the previous year: In addition to higher equity-accounted income, this related in particular to income from divestitures, while depreciation and amortization was lower than in 2024.

In addition, the price-related increase in precious metal trading items, which is included in other operating assets, led to cash tied up of €715 million, compared with €476 million released in the previous year. This was offset by significantly higher dividends received from investments accounted for using the equity method, in particular from Wintershall Dea GmbH, Kassel, Germany. The change in provisions, especially for variable compensation components and severance payments, also led to a €767 million higher cash release than in 2024.

The change in net working capital resulted in a €303 million lower cash inflow in 2025 than in the previous year. The decline was mainly due to trade accounts payable. After €96 million had been released in the previous year, a reduction in liabilities in 2025 led to cash tied up of €736 million. This was offset by a stronger reduction in trade accounts receivable that was €488 million greater compared with the previous year.

Cash flows from investing activities amounted to -€3,208 million in the business year under review, after -€5,081 million in the previous year. The significant improvement was mainly due to lower payments made for property, plant and equipment and intangible assets, which were reduced from €6,198 million in the previous year to €4,267 million in 2025.

In addition, net cash inflows from acquisitions and divestitures increased by €997 million compared to the previous year. In the 2025 business year, payments received from divestitures totaled €871 million, relating in particular to the divestiture of the Brazilian decorative paints business and the sale of the food and health performance ingredients business. Payments made for acquisitions were recorded only to an immaterial extent in 2025. In the previous year, however, cash flows from investing activities included €202 million in payments made for acquisitions, in particular for the acquisition of production plants from the joint venture Shanghai Lianheng Isocyanate Co. Ltd. Shanghai, China, previously operated jointly with Huntsman.

In the 2025 business year, inflows and outflows for equity instruments were insignificant overall. In the previous year, payments of €1,725 million had been received in connection with the sale of the exploration and production business of Wintershall Dea GmbH (until September 23, 2024: Wintershall Dea AG) to Harbour Energy plc, London, United Kingdom. Payments made for the acquisition of equity instruments in the previous year mainly related to the shareholdings in the Nordlicht 1 and 2 wind farm projects.

Cash flows from financing activities amounted to -€2,416 million in the 2025 business year, below the prior-year figure of -€1,547 million. In the business year under review, additions to and repayment of financial and similar liabilities almost balanced each other out. In contrast, the increase in debt in the previous year led to a net cash inflow of €1,783 million.

At a Glance

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Further Information

Conversely, dividend payments to shareholders of BASF SE were €2,008 million, €1,026 million below the prior-year level. Dividends paid to noncontrolling shareholders also decreased significantly, falling by €171 million to €78 million.

The share buyback program launched in the fourth quarter of 2025 led to a cash outflow of €355 million.

Free cash flow, which remains after deducting payments made for property, plant and equipment and intangible assets from cash flows from operating activities, represents the financial resources remaining after investments. Due to the lower capital expenditures, free cash flow improved significantly compared to the previous year. In 2025, free cash flow was €1,342 million, compared to €748 million in 2024.

For more information on the statement of cash flows, see Note 26 to the Consolidated Financial Statements from page 407 onward.

Statement of cash flows

Million €	2025	2024
Net income	1,619	1,298
Depreciation of property, plant and equipment and amortization of intangible assets	4,166	4,648
Changes in net working capital	57	360
Miscellaneous items	-232	639
Cash flows from operating activities	5,610	6,946
Payments made for property, plant and equipment and intangible assets	-4,267	-6,198
Acquisitions/divestitures	870	-127
Changes in financial assets and miscellaneous items	189	1,244
Cash flows from investing activities	-3,208	-5,081
Capital repayments and other equity transactions	-355	-46
Changes in financial and similar liabilities	25	1,783
Dividends	-2,086	-3,284
Cash flows from financing activities	-2,416	-1,547
Cash-effective changes in cash and cash equivalents	-15	318
Changes in cash and cash equivalents from foreign exchanges rates and changes in the scope of consolidation	-88	-21
Cash and cash equivalents at the beginning of the year^{a}	2,921	2,624
Cash and cash equivalents at the end of the year^{a}	2,818	2,921

a As of December 31, 2024, and December 31, 2025, the cash and cash equivalents in the statement of cash flows differ from the value in the balance sheet due to the existence of disposal groups. For more information, see the Notes to the Consolidated Financial Statements from page 318 onward

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Free cash flow

Million €	2025	2024
Cash flows from operating activities	5,610	6,946
– Payments made for property, plant and equipment and intangible assets	4,267	6,198
Free cash flow	1,342	748

Reconciliation of segment cash flow to free cash flow

Million €	2025	2024
Segment cash flow	2,998	2,063
+ Net income from shareholdings	1,313	602
+ Financial result	-500	-552
+ Income taxes^{a}	-907	-573
+ Segment cash flow, net income from shareholdings, financial result and income taxes from discontinued operations	182	226
– Income after taxes attributable to noncontrolling interests	107	155
+ Changes in items included in the segment cash flow that are recognized under Other	-1,129	-1,637
+ Other items presented in the cash flows from operating activities^{b}	-508	774
Free cash flow	1,342	748

a The value corresponds to the amount reported in the statement of income and does not represent a cash flow.
b For more information on the composition of the items, see Our Steering Concept from page 29 onward.

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Actual Development Compared with Outlook for 2025

Earnings and Cash Flow Forecast for the BASF Group

The range for EBITDA before special items forecast in February 2025 was originally between €8.0 billion and €8.4 billion. The forecast for the BASF Group was adjusted to between €7.3 billion and €7.7 billion in July 2025. As part of the carving out of the coatings disposal group, the forecast was technically adjusted to between €6.7 billion and €7.1 billion in October 2025. The outlook for the segments has remained unchanged since February 2025. In determining the actual development compared to the outlook for 2025, it was taken into account that sales and earnings of coatings were no longer part of the sales and EBIT(DA) of the BASF Group or the Surface Technologies segment with retroactive effect as of January 1, 2025.

In 2025, the BASF Group generated EBITDA before special items of €6.6 billion. This figure was slightly below the range forecast in October 2025. This was mainly due to the earnings declines in our core businesses. While we had forecast a slight decline in EBITDA before special items for Chemicals in February 2025, the segment posted much lower earnings. EBITDA before special items also declined significantly in the Materials, Industrial Solutions and Nutrition & Care segments, after we had expected a slight improvement in earnings (see below for more information on the background to the divergent developments).

The BASF Group's free cash flow in the 2025 business year was €1.3 billion, well above the range of between €0.4 billion and €0.8 billion forecast in February 2025. Free cash flow was supported by lower payments for property, plant and equipment and intangible assets, which, at €4.3 billion, were below the forecast figure of €5.2 billion. Cash flows from operating activities amounted to €5.6 billion and were within our forecast range of €5.6 billion to €6.0 billion.

CO₂ emissions forecast for the BASF Group

CO₂ emissions amounted to 16.1 million metric tons and were therefore below the range we had forecast in February 2025 of between 16.7 million metric tons and 17.7 million metric tons. Reduced production volumes, slightly higher process efficiencies and increased use of electricity from renewable energies were the main reasons for the deviations from the forecast.

Capex forecast for the BASF Group

In 2025, we invested €4.0 billion in property, plant and equipment (excluding additions from acquisitions, IT investments, restoration obligations and right-of-use assets arising from leases). The figure forecast in February 2025 was around €5.0 billion. All segments invested less than originally planned.

Earnings and cash flow forecast for the segments

In the Chemicals segment, EBITDA before special items declined significantly, although only a slight decline had been forecast. This was mainly due to a significant decline in earnings in the Intermediates division. Despite an expected significant increase in volumes and margins, especially for amines, the planned recovery failed to materialize. The segment's cash flow increased significantly, as predicted in February 2025.

EBITDA before special items for the Materials segment was considerably less than the prior-year figure. We had forecast a slight increase in the segment's earnings. The decline in earnings was mainly due to lower contribution margins of both divisions due to price and currency effects. We had expected stable margins. The volume increase was slightly lower than expected. Fixed costs in the Monomers division decreased contrary to expectations, but only slightly mitigated the decline in earnings. Although the segment's cash flow was forecast to remain at the previous year's level, it increased significantly. While

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cash flow in the Performance Materials division declined as expected, the Monomers division achieved a stronger than planned improvement in cash flow, particularly due to a higher reduction in inventories.

EBITDA before special items in the Industrial Solutions segment also declined significantly, although we had forecast a slight increase. Against expectations, earnings in the Performance Chemicals division fell significantly: Instead of the forecast significant sales volumes increase, volumes declined. Earnings in the Dispersions & Resins division declined more sharply than expected. Contrary to what had been forecast, the cost savings program only partially compensated for the inflation-related increase in fixed costs. As forecast, the segment's cash flow declined slightly.

In the Nutrition & Care segment, we had expected a slight increase in earnings for the 2025 business year. However, the segment's EBITDA before special items declined significantly. Care Chemicals did not match the previous year's earnings, contrary to our expectation. Lower contribution margins led to a significant decrease in earnings. Nutrition & Health's earnings improved significantly as forecast. However, the increase in earnings was, other than expected, not attributable to improved margins but to lower fixed costs. As expected, the segment's cash flow was significantly below the prior-year figure.

In the Surface Technologies segment, earnings rose significantly, as forecast. As expected, the segment's cash flow also improved significantly.

In the Agricultural Solutions segment, both indicators developed as expected: EBITDA before special items increased slightly and the segment's cash flow declined significantly.

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Business Review by Segment

Segment overview

	Sales		EBITDA before special items		EBITDA
Million €	2025	2024	2025	2024	2025	2024
Chemicals	10,055	10,838	853	1,342	747	1,314
Materials	12,742	13,510	1,575	1,805	1,502	1,769
Industrial Solutionsa	8,594	9,223	1,200	1,437	1,153	1,412
Nutrition & Care	6,509	6,729	649	814	630	819
Surface Technologiesa	8,967	8,055	800	470	1,394	405
Agricultural Solutions	9,587	9,798	2,081	1,938	1,925	1,659
Other	3,202	3,290	-604	-567	-1,732	-1,167
BASF Group	59,657	61,444	6,554	7,240	5,618	6,211

Segment overview

	Segment cash flow		Assets		Investments including acquisitionsb
Million €	2025	2024	2025	2024	2025	2024
Chemicals	-1,182	-2,051	14,400	14,266	2,108	3,403
Materials	1,054	766	9,226	10,135	940	1,139
Industrial Solutionsa	1,061	1,102	6,560	7,494	391	349
Nutrition & Care	-67	-31	7,610	7,887	662	809
Surface Technologiesa	627	415	5,836	5,609	116	309
Agricultural Solutions	1,505	1,861	14,243	15,377	351	387
Otherc			18,299	19,647	131	240
BASF Group			76,174	80,415	4,698	6,636

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Sales

Million €	Q1		Q2		Q3		Q4
	2025	2024	2025	2024	2025	2024	2025	2024
Chemicals	2,777	2,764	2,502	2,838	2,526	2,714	2,251	2,521
Materials	3,449	3,441	3,240	3,416	3,153	3,413	2,899	3,240
Industrial Solutionsb	2,269	2,285	2,160	2,377	2,134	2,339	2,032	2,222
Nutrition & Care	1,720	1,729	1,618	1,667	1,637	1,711	1,535	1,623
Surface Technologiesb	2,189	2,183	2,355	2,047	2,302	1,963	2,121	1,863
Agricultural Solutions	3,203	3,478	2,198	1,937	1,748	1,849	2,437	2,534
Other	903	734	715	869	828	827	757	860
BASF Group	16,509	16,615	14,788	15,151	14,328	14,816	14,032	14,863

EBITDA before special itemsa

Million €	Q1		Q2		Q3		Q4
	2025	2024	2025	2024	2025	2024	2025	2024
Chemicals	336	453	209	444	262	342	46	103
Materials	469	508	408	448	408	484	289	365
Industrial Solutionsb	361	383	307	367	291	378	242	308
Nutrition & Care	230	262	196	183	134	201	89	168
Surface Technologiesb	170	131	172	152	328	118	130	70
Agricultural Solutions	1,204	1,361	417	135	80	49	381	394
Other	-274	-558	-114	60	-73	-94	-144	25
BASF Group	2,495	2,541	1,595	1,788	1,430	1,478	1,033	1,434

Segment cash flowa

Million €	Q1		Q2		Q3		Q4
	2025	2024	2025	2024	2025	2024	2025	2024
Chemicals	-390	-556	-176	-406	-38	-363	-577	-726
Materials	44	85	256	137	338	299	417	246
Industrial Solutionsb	142	117	224	167	353	403	343	416
Nutrition & Care	-103	-64	-27	19	-34	52	97	-38
Surface Technologiesb	-2	189	63	109	274	101	292	16
Agricultural Solutions	-978	-715	811	1,005	465	612	1,206	959

a Quarterly results not audited
b Since January 1, 2025, the chemical and refining catalysts business has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the former Catalysts division in the Surface Technologies segment. The prior-year figures have been restated accordingly.

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Chemicals

The Chemicals segment comprises the Petrochemicals and Intermediates divisions. It contributes to our direct customer business and supplies the other segments with basic chemicals and intermediates, contributing to the organic growth of our key value chains. Customers in this segment mainly come from the chemical and plastics industries. We aim to further strengthen our competitiveness through technological leadership, operational excellence and products with a lower carbon footprint.

At a glance

€853 million

EBITDA before special items

2024: €1,342 million

-€1,182 million

Segment cash flow

2024: -€2,051 million

In the Chemicals segment, sales stood at €10,055 million, €782 million below the prior-year figure, mainly due to lower prices.

Factors influencing sales

	Chemicals	Petrochemicals	Intermediates
Volumes	-0.3 %	1.0 %	-4.1 %
Prices	-8.8 %	-10.0 %	-5.2 %
Currencies	-2.2 %	-2.2 %	-2.3 %
Portfolio	4.1 %	4.3 %	3.6 %
Sales	-7.2 %	-6.9 %	-8.0 %

Significant price declines due to global overcapacities and lower raw material prices dampened the segment's sales. In the Petrochemicals division, prices fell for cracker products in particular and for styrenics and acrylic monomers. The Intermediates division experienced price declines in all business areas.

Negative currency effects, mainly from the U.S. dollar and the Chinese renminbi, dampened sales in both operating divisions.

Sales volumes in the segment were almost at prior-year level. While sales volumes in the Petrochemicals division increased, especially in the acrylic monomers and styrenics business areas, the Intermediates division recorded a decline in volumes. This was primarily due to subdued demand, which had been supported in the first half of 2024 as a result of the conflict in the Red Sea and unscheduled plant shutdowns among our competitors, as well as the closure of several production plants.

Positive portfolio effects resulted from a change in the business model of BASF-YPC Company Ltd., Nanjing, China, which is accounted for using the equity method. The company had marketed these volumes directly in the previous year.

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EBITDA before special items¹ for the Chemicals segment was considerably below the prior-year level. Earnings in the Petrochemicals division declined mainly due to lower contribution margins for steam cracker products and in the propylene value chain. Earnings in the Intermediates division were impacted by lower contribution margins due to declining prices. Lower fixed costs partially counteracted this development.

Special charges included in EBITDA amounted to €106 million in 2025 and resulted mainly from restructuring measures in the Intermediates division.

Segment cash flow¹ in the Chemicals segment overall was significantly higher than in the previous year. This was mainly due to materially lower capital expenditures, particularly in the Petrochemicals division for the construction of the Verbund site in Zhanjiang, China.

Segment data – Chemicals

Million €	2025	2024	+/-
Sales to third parties	10,055	10,838	-7.2%
of which Petrochemicals	7,492	8,050	-6.9%
Intermediates	2,564	2,788	-8.0%
Intersegment transfers	3,432	3,962	-13.4%
Sales including transfers	13,488	14,800	-8.9%
EBITDA before special items	853	1,342	-36.5%
Special items in EBITDA	-106	-28	-283.9%
EBITDA	747	1,314	-43.2%
EBITDA margin before special items %	8.5	12.4	.
Depreciation and amortizationᵃ	1,120	885	26.5%
EBIT before special items	-88	503	.
Special items in EBIT	-286	-74	-288.2%
Income from operations (EBIT)	-374	429	.
Investments including acquisitionsᵇ	2,108	3,403	-38.1%
Segment cash flow	-1,182	-2,051	42.4%
Assets (December 31)	14,400	14,266	0.9%
Research and development expenses	87	80	9.6%

ᵃ Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
ᵇ Additions to property, plant and equipment and intangible assets

Chemicals – sales by region

By location of customer
5.6%
South America, Africa, Middle East		50.1%
		Europe
18.6%	€10,055 million
Asia Pacific
25.7%
North America

¹ For EBITDA before special items and cash flow, "slight" means a change of 0.1%–10.0%, while "considerable" and its synonyms are used for changes of 10.1% and higher. "At prior-year level" indicates no change (+/-0.0%).

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Materials

The Materials segment comprises the Performance Materials and the Monomers divisions. Together, these divisions have one of the world's largest production capacities for high-performance plastics and precursors for processing industries. With its broad portfolio of large-volume monomers and basic polymers along the isocyanate and polyamide value chains, the Monomers division follows a lean and cost-optimized approach. The Performance Materials division offers innovative and customized solutions in engineering plastics, polyurethanes, thermoplastic polyurethanes and special plastics. Close cooperation with customers, especially with regard to sustainable product developments, generates additional value.

At a glance

€1,575 million

EBITDA before special items

2024: €1,805 million

€1,054 million

Segment cash flow

2024: €766 million

In the Materials segment, declining prices and negative currency effects compared with the previous year led to a sales decline in both operating divisions. Sales amounted to €12,742 million, a decrease of €768 million.

Factors influencing sales

	Materials	Performance Materials	Monomers
Volumes	0.8%	0.2%	1.5%
Prices	-3.7%	-3.3%	-4.1%
Currencies	-2.8%	-3.0%	-2.5%
Portfolio	0.0%	-0.1%	-
Sales	-5.7%	-6.2%	-5.2%

Both operating divisions recorded price declines in almost all regions. Prices decreased in the Performance Materials division, especially in the polyurethane systems and engineering plastics business areas. In the Monomers division, prices fell for MDI in particular.

Currency effects, largely relating to the U.S. dollar and the Chinese renminbi, further dampened sales performance in the segment.

The segment's increase in volumes was mainly due to higher sales volumes of MDI. Both operating divisions increased volumes in the Asia Pacific and Europe regions.

EBITDA before special items for the Materials segment was considerably below the prior-year level. This was mainly due to lower contribution margins in both operating divisions due to price and currency effects. Lower fixed costs in the Monomers division only partially offset the decline in earnings, while higher fixed costs in the Performance Materials division burdened overall performance.

The segment's EBITDA included special charges totaling €73 million. These resulted above all in relation to adapting the production structure at the Verbund site in Ludwigshafen, Germany. The prior-year figure had included special income from a contractually agreed one-time payment.

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Segment cash flow for the Materials segment was considerably above the figure for the previous year. This was due to a significant improvement in the Monomers division, in particular as a result of a reduction in inventories compared to a buildup of inventories in the previous year. Reduced investments as a result of the startup of the hexamethylenediamine (HMD) plant in Chalampé, France, also boosted cash flow in the Monomers division. Cash flow in the Performance Materials division was slightly below the prior-year level, with lower EBITDA mainly offset by positive working capital effects.

Segment data – Materials

Million €	2025	2024	+/-
Sales to third parties	12,742	13,510	-5.7%
of which Performance Materials	6,425	6,848	-6.2%
Monomers	6,316	6,661	-5.2%
Intersegment transfers	778	825	-5.7%
Sales including transfers	13,520	14,335	-5.7%
EBITDA before special items	1,575	1,805	-12.8%
Special items in EBITDA	-73	-37	-99.5%
EBITDA	1,502	1,769	-15.1%
EBITDA margin before special items %	12.4	13.4	.
Depreciation and amortization^{a}	867	830	4.4%
EBIT before special items	722	987	-26.9%
Special items in EBIT	-87	-48	-79.6%
Income from operations (EBIT)	635	939	-32.4%
Investments including acquisitions^{b}	940	1,139	-17.5%
Segment cash flow	1,054	766	37.7%
Assets (December 31)	9,226	10,135	-9.0%
Research and development expenses	184	180	1.9%

a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
b Additions to property, plant and equipment and intangible assets

Materials – sales by region

By location of customer
5.3%
South America, Africa, Middle East		38.5%
	€12,742 million	Europe
33.3%
Asia Pacific		22.9%
		North America

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Industrial Solutions

The Industrial Solutions segment consists of the Dispersions & Resins and the Performance Chemicals divisions. It develops and markets ingredients and additives for industrial applications, such as polymer dispersions, resins, process catalysts, adsorbents as well as refinery catalysts, additives and electronic materials. The segment aims to grow organically in key industries, such as coatings, construction, electronic materials, plastics and adhesives, paper coatings, automotive, as well as energy and resources. It intends to expand its market position by leveraging comprehensive industry expertise and application know-how.

At a glance

€1,200 million

EBITDA before special items

2024: €1,437 million

€1,061 million

Segment cash flow

2024: €1,102 million

In the Industrial Solutions segment, sales declined by €629 million compared with the previous year, to €8,594 million. In both operating divisions, this performance was primarily due to price and currency effects.

Factors influencing sales

	Industrial Solutions	Dispersions & Resins	Performance Chemicals
Volumes	-0.6%	-0.4%	-0.9%
Prices	-2.5%	-3.1%	-1.8%
Currencies	-2.6%	-2.5%	-2.7%
Portfolio	-1.1%	-	-2.4%
Sales	-6.8%	-6.0%	-7.8%

Prices declined in both operating divisions, mainly due to lower raw material prices and a competitive environment.

Negative currency effects, mainly relating to the U.S. dollar and the Chinese renminbi, dampened the segment's sales.

In addition, volumes declined slightly in both operating divisions. In the Performance Chemicals division, sales volumes decreased mainly in the antioxidants and light stabilizers business areas as well as in lubricant solutions. In the Dispersions & Resins division, the increase in the electronic materials business area partially counterbalanced the decline in volumes in the resins and dispersions business areas.

Furthermore, the sale of the flocculants business for mining applications in the Performance Chemicals division in November 2024 had a negative portfolio effect.

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EBITDA before special items declined significantly in both operating divisions, mainly due to a decrease in the contribution margin. Lower fixed costs only partially offset the impact on earnings in the Performance Chemicals division, while slightly higher fixed costs further burdened earnings in the Dispersions & Resins division.

Special items in EBITDA amounted to €-48 million in 2025. These were mainly due to restructuring measures.

Segment cash flow for the Industrial Solutions segment declined slightly overall. In particular, lower EBITDA negatively affected cash flow in the Performance Chemicals division. The Dispersions & Resins division, on the other hand, significantly increased its cash flow, mainly due to positive effects from the reduction of inventories.

Segment data – Industrial Solutionsᵃ

Million €	2025	2024	+/-
Sales to third parties	8,594	9,223	-6.8%
of which Dispersions & Resins	4,801	5,110	-6.0%
Performance Chemicals	3,794	4,114	-7.8%
Intersegment transfers	468	558	-16.1%
Sales including transfers	9,063	9,781	-7.3%
EBITDA before special items	1,200	1,437	-16.5%
Special items in EBITDA	-48	-25	-87.6%
EBITDA	1,153	1,412	-18.4%
EBITDA margin before special items %	14.0	15.6
Depreciation and amortizationᵇ	448	453	-1.2%
EBIT before special items	786	994	-20.9%
Special items in EBIT	-81	-35	-129.1%
Income from operations (EBIT)	705	959	-26.4%
Investments including acquisitionsᶜ	391	349	12.0%
Segment cash flow	1,061	1,102	-3.7%
Assets (December 31)	6,560	7,494	-12.5%
Research and development expenses	187	187	-0.1%

ᵃ Since January 1, 2025, the chemical and refining catalysts business has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the former Catalysts division in the Surface Technologies segment. The prior-year figures have been adjusted accordingly.
ᵇ Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments)
ᶜ Additions to property, plant and equipment and intangible assets

Industrial Solutions – sales by region

By location of customer

8.5%

South America, Africa, Middle East

30.0%

Asia Pacific

33.9%

Europe

27.7%

North America

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Nutrition & Care

The Nutrition & Care segment consists of the Care Chemicals and the Nutrition & Health divisions. It serves the growing demands of food and feed producers and of the pharmaceutical, cosmetics, detergent and cleaner industries. We leverage the BASF Verbund to offer innovative products, combining performance with beneficial sustainability profiles. We strive to expand our position as a leading provider of essential ingredients in the areas of nutrition, home and personal care, as well as for technical applications, mainly through organic growth based on global production capacities. We are focused on markets with long-term growth potential.

At a glance

€649 million

EBITDA before special items

2024: €814 million

-€67 million

Segment cash flow

2024: -€31 million

Sales in the Nutrition & Care segment amounted to €6,509 million in the 2025 business year, a decrease of €221 million, primarily due to the decline in sales in the Nutrition & Health division. The Care Chemicals division, on the other hand, recorded a slight improvement in sales, mainly due to positive price trends.

Factors influencing sales

	Nutrition & Care	Care Chemicals	Nutrition & Health
Volumes	-2.3%	-1.5%	-4.2%
Prices	1.4%	3.1%	-2.6%
Currencies	-2.4%	-2.2%	-3.1%
Portfolio	0.0%	0.9%	-2.0%
Sales	-3.3%	0.3%	-11.8%

Volumes declined in both operating divisions. In the Nutrition & Health division, volumes for vitamin A, vitamin E and carotenoid products affected by the fire at the isophytol plant in July 2024 were below the prior-year level. While inventories were initially sold off, volumes fell short of the previous year, especially in the first half of 2025. Production was steadily increased from the second quarter of 2025; this meant that production levels had largely normalized by the end of the year. Significant volume growth in almost all other business areas, particularly in the pharmaceutical business, could only partially offset this effect. In the Care Chemicals division, sales volumes declined as a result of lower demand, especially in home care and industrial & institutional cleaning and in the oleo surfactants business area.

In addition, negative currency effects, mainly from the U.S. dollar, dampened the segment's sales.

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Higher prices in the Care Chemicals division, mainly driven by the positive development in the oleochemical surfactants business area, counteracted the overall sales trend. The Nutrition & Health division, on the other hand, recorded a price decline, especially in the pharmaceutical business.

The sale of the food and health performance ingredients business had a negative portfolio effect in the Nutrition & Health division. This was counterbalanced by positive effects in the Care Chemicals division resulting from a change in the business model of BASF-YPC Company Ltd., Nanjing, China, which is accounted for using the equity method.

EBITDA before special items decreased significantly compared to the previous year due to the decline in earnings in the Care Chemicals division. The operating division's earnings were impacted primarily by a lower contribution margin in almost all business areas, especially personal care. EBITDA before special items in the Nutrition & Health division, on the other hand, increased as a result of lower fixed costs related to the fire at the isophytol plant in the previous year and the associated insurance refunds in 2025.

Special charges in EBITDA from a large number of items were partially offset by the gain from the sale of the food and health performance ingredients business.

Compared to 2024, segment cash flow declined significantly overall. The Nutrition & Health division recorded negative working capital effects as a result of the fire at the isophytol plant; following a reduction in inventories due to the sell-off of the affected products in the previous year, inventories were successively built up again in 2025. Cash flow in the Care Chemicals division declined mainly due to lower EBITDA.

Segment data – Nutrition & Care

Million €	2025	2024	+/-
Sales to third parties	6,509	6,729	-3.3%
of which Care Chemicals	4,765	4,751	0.3%
Nutrition & Health	1,744	1,978	-11.8%
Intersegment transfers	452	446	1.3%
Sales including transfers	6,961	7,176	-3.0%
EBITDA before special items	649	814	-20.3%
Special items in EBITDA	-19	5	.
EBITDA	630	819	-23.1%
EBITDA margin before special items %	10.0	12.1	.
Depreciation and amortization^{a}	554	599	-7.5%
EBIT before special items	133	273	-51.4%
Special items in EBIT	-57	-53	-8.4%
Income from operations (EBIT)	76	220	-65.7%
Investments including acquisitions^{b}	662	809	-18.2%
Segment cash flow	-67	-31	-119.3%
Assets (December 31)	7,610	7,887	-3.5%
Research and development expenses	137	149	-7.6%

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Nutrition & Care – sales by region

By location of customer

9.1%

South America, Africa, Middle East

25.0%

Asia Pacific

€6,509 million

48.3%

Europe

17.6%

North America

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Surface Technologies

As of December 31, 2025, the Surface Technologies segment consisted of the Battery Materials and Environmental Catalyst and Metal Solutions (ECMS) divisions. Until October 1, 2025, the segment also included the Coatings division (for more information on the Coatings transactions, see page 39). The Surface Technologies portfolio includes chemical solutions for surfaces in the areas of battery materials and emissions catalysts, as well as services in the areas of precious metals and base metals. We improve our customers' applications and processes with tailored products, technologies and solutions, and support them through geographical proximity across all regions. The aim is to drive BASF's growth by leveraging our portfolio of technologies and existing customer networks.

At a glance

€800 million

EBITDA before special items

2024: €470 million

€627 million

Segment cash flow

2024: €415 million

Compared to the previous year, sales in the Surface Technologies segment increased by €912 million to €8,967 million. This performance was largely influenced by strong sales growth in the ECMS division, especially in precious metal trading. Sales in the Battery Materials division also developed positively.

Factors influencing sales

	Surface Technologies	Coatingsa	Battery Materials	ECMS
Volumes	8.8%	5.5%	12.0%	8.8%
Prices	9.0%	2.5%	0.2%	10.3%
Currencies	-4.8%	-7.7%	-5.0%	-4.6%
Portfolio	-1.7%	-29.0%	-	-
Sales	11.3%	-28.6%	7.2%	14.5%

a The figures of the Coatings division refer exclusively to the decorative paints business unit.

Significantly increased prices, especially the precious metal prices in the ECMS division, had a positive effect on the segment's sales performance. The Coatings¹ division recorded a slight price increase, and in the Battery Materials division prices rose in the cathode materials business area.

The segment's significant increase in volumes was primarily due to positive development in the ECMS division, especially in the precious metals business. The Battery Materials and Coatings divisions also increased their sales volumes significantly.

Negative currency effects, mainly relating to the U.S. dollar and the Chinese renminbi, dampened the segment's sales performance.

Negative portfolio effects resulted from the sale of the Brazilian decorative paints business, effective October 1, 2025.

¹ The figures of the Coatings division refer exclusively to the decorative paints business unit.

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EBITDA before special items in the Surface Technologies segment increased significantly compared with the previous year, primarily due to the improved results of the ECMS division. The improvement was attributable to reimbursements of production costs, mainly related to previous periods, significant fixed cost savings, strong precious metal trading and volume growth in mobile emissions catalysts and recycling. The Battery Materials division improved its EBITDA before special items, mainly due to a higher contribution margin.

Special income in EBITDA amounting to €594 million mainly included the gain from the sale of the Brazilian decorative paints business.

Segment cash flow increased significantly compared to the previous year, mainly due to lower capital expenditures in the Battery Materials division. The ECMS division improved its cash flow mainly due to a significant increase in earnings; negative effects from an increase in trade receivables compared with a reduction in the previous year had an offsetting effect.

Segment data – Surface Technologiesa

Million €	2025	2024	+/-
Sales to third parties	8,967	8,055	11.3%
of which Coatingsb	347	486	-28.6%
Battery Materials	642	599	7.2%
ECMS	7,978	6,970	14.5%
Intersegment transfers	43	33	29.4%
Sales including transfers	9,010	8,088	11.4%
EBITDA before special items	800	470	70.2%
Special items in EBITDA	594	-65	.
EBITDA	1,394	405	244.1%
EBITDA margin before special items %	8.9	5.8	.
Depreciation and amortizationc	253	797	-68.3%
EBIT before special items	587	203	188.6%
Special items in EBIT	555	-595	.
Income from operations (EBIT)	1,141	-392	.
Investments including acquisitionsd	116	309	-62.5%
Segment cash flow	627	415	51.1%
Assets (December 31)	5,836	5,609	4.1%
Research and development expenses	155	179	-13.1%

a Since January 1, 2025, the chemical and refining catalysts business has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the former Catalysts division in the Surface Technologies segment. The prior-year figures have been restated accordingly. In addition, the two business units Battery Materials and Environmental Catalyst and Metal Solutions were established as new divisions in the segment as of January 1, 2025. They emerged from the Catalysts division.
b The figures of the Coatings division refer exclusively to the decorative paints business unit.
c Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments) excluding depreciation and amortization or reversals of impairments attributable to the discontinued coatings business; prior-year figures have been restated
d Additions to property, plant and equipment and intangible assets excluding additions attributable to the discontinued coatings business; prior-year figures have been restated

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Surface Technologies – sales by region

By location of customer

10.6%

South America, Africa, Middle East

Europe

32.6%

Asia Pacific

26.4%

North America

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Agricultural Solutions

We have a balanced and customer-focused portfolio in the Agricultural Solutions segment. Our product offering is designed for different crop systems. We offer solutions for seeds, traits, seed treatment products, biological and chemical crop protection products, digital tools and more sustainable solutions to deliver optimum outcomes for farmers, growers and other partners along the value chain. Our innovation pipeline is targeting a sales potential of more than €7.5 billion for products launched by 2034.

At a glance

€2,081 million

EBITDA before special items

2024: €1,938 million

€1,505 million

Segment cash flow

2024: €1,861 million

In the Agricultural Solutions segment, sales declined to €9,587 million in the 2025 business year, €211 million below the prior-year figure. This was due mainly to unfavorable currency effects.

Factors influencing sales

	Agricultural Solutions
Volumes	3.0%
Prices	-1.2%
Currencies	-3.9%
Portfolio	-
Sales	-2.2%

Sales in Europe increased slightly to €2,478 million, driven by higher sales volumes and slightly higher prices. Negative currency effects, primarily from the Turkish lira, had an offsetting effect.

Sales in North America amounted to €3,811 million, slightly below the prior-year figure. The volume increase, especially due to the market launch of glufosinate-P-ammonium, did not fully compensate for negative currency effects relating to the U.S. dollar and slightly lower prices.

In Asia, sales of €1,026 million were significantly below the prior-year level. Both currency and volume effects had a slightly negative impact, mainly due to high customer inventories in the region and the depreciation of the Indian rupee. In China, strong competitive pressure also led to a slight decline in prices.

In the South America, Africa, Middle East region, sales decreased by €83 million to €2,273 million compared to the previous year. This decrease was attributable to negative currency effects, particularly in relation to the Brazilian real and the Argentine peso, as well as lower prices. Higher volumes, especially in the insecticides business area, partially offset this decline.

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EBITDA before special items rose slightly in 2025. This increase was mainly attributable to an improved contribution margin due to reduced manufacturing costs and the market launch of glufosinate-P-ammonium.

The segment's EBITDA included special charges totaling €156 million, in particular for the conversion of the ERP system.

Despite the increase in EBITDA, segment cash flow was below the prior-year level. This was mainly due to negative effects from a buildup of inventories compared to a significant reduction in inventories in the previous year.

Segment data – Agricultural Solutions

Million €	2025	2024	+/-
Sales to third parties	9,587	9,798	-2.2%
of which Fungicides	2,838	3,014	-5.8%
Herbicides	3,059	2,965	3.2%
Insecticides	1,089	1,102	-1.2%
Seed Treatment	575	598	-3.8%
Seeds & Traits	2,026	2,119	-4.4%
Intersegment transfers	63	50	25.9%
Sales including transfers	9,650	9,848	-2.0%
EBITDA before special items	2,081	1,938	7.4%
Special items in EBITDA	-156	-279	44.3%
EBITDA	1,925	1,659	16.1%
EBITDA margin before special items %	21.7	19.8	.
Depreciation and amortization^{a}	583	675	-13.7%
EBIT before special items	1,500	1,270	18.1%
Special items in EBIT	-158	-286	44.9%
Income from operations (EBIT)	1,342	984	36.5%
Investments including acquisitions^{b}	351	387	-9.2%
Segment cash flow	1,505	1,861	-19.2%
Assets (December 31)	14,243	15,377	-7.4%
Research and development expenses	990	919	7.8%

Agricultural Solutions – sales by region

By location of customer

23.7%

South America, Africa, Middle East

25.8%

Europe

10.7%

Asia Pacific

39.8%

North America

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Other

At a glance

€3,202 million

Sales

2024: €3,290 million

-€604 million

EBITDA before special items

2024: -€567 million

Sales in Other amounted to €3,202 million, below the prior-year level by €88 million. This was mainly due to lower sales in both commodity and energy trading.

EBITDA before special items of Other decreased slightly compared to the previous year. This was primarily due to increased LTI expenses and a lower earnings contribution from other businesses.

EBITDA in Other included special items of -€1,128 million in 2025. This included special charges in the amount of €595 million for restructuring measures as well as €328 million from the sale of BASF's shares in the Nordlicht 1 and 2 wind farm projects.

Financial data – Otherᵃ

Million €	2025	2024	+/-
Sales to third parties	3,202	3,290	-2.7%
EBITDA before special items	-604	-567	-6.7%
of which costs for cross-divisional corporate research	-168	-183	8.3%
costs of corporate headquarters	-241	-232	-4.0%
other businesses	175	182	-3.9%
miscellaneous income and expenses	-371	-334	-11.0%
Special items in EBITDA	-1,128	-601	-87.7%
EBITDA	-1,732	-1,167	-48.4%
Depreciation and amortizationᵇ	159	160	-0.9%
EBIT before special items	-752	-706	-6.5%
Special items in EBIT	-1,139	-622	-83.2%
Income from operations (EBIT)	-1,891	-1,328	-42.4%
Investments including acquisitionsᶜ	131	240	-45.6%
Assets (December 31)ᵈ	18,299	19,647	-6.9%
Research and development expenses	254	276	-7.9%

ᵃ The prior-year figures have been restated due to the planned divestiture of the automotive OEM coatings, automotive refinish coatings and surface treatment business units.
ᵇ Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments), excluding depreciation and amortization, impairments or reversals of impairments attributable to the discontinued coatings business; previous year's figures have been restated
ᶜ Additions to property, plant and equipment and intangible assets excluding additions attributable to the discontinued coatings business; prior-year figures have been restated
ᵈ Includes assets of businesses recognized under Other and reconciliation to assets of the BASF Group

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1.3 Forecast

For 2026, we anticipate global GDP growth of 2.7% and industrial growth of 2.3%. In this economic environment, we expect global chemical production to grow by 2.4%. The macroeconomic risks remain high in view of geopolitical conflicts and increasing protectionist tendencies.

Economic Environment in 2026¹

While overall economic growth rates in 2025 were still supported by frontloading effects and the associated temporary buildup of inventories, we expect the higher tariffs on imports into the United States to have a dampening effect on growth in 2026. Rising consumer prices in the United States are expected to have a stronger impact. The diversion of global trade flows triggered by higher tariffs in the United States and countermeasures by its trading partners is impacting growth in other regions and resulting in higher import pressure, especially in Europe.

Trends in the Global Economy in 2026

We anticipate global GDP will grow by 2.7%, slightly weaker than in 2025. Growth is expected to ease in both advanced economies (+1.6%) and emerging markets (+4.0%) relative to the previous year.

For the European Union (EU), we assume that overall growth will slow from 1.6% in 2025 to 1.2% in 2026. In France and Italy, we expect growth to remain low at just under 1%, while we assume that GDP growth in Spain will decline to 2.3%. Ireland, which had double-digit growth in 2025, is playing a significant role in the slowdown in growth in the EU. For 2026, we expect a slight decline in Ireland's GDP.

We expect German GDP to grow by just under 1%, after having largely stagnated in 2025. Government spending on infrastructure and defense is expected to support growth. In foreign trade, on the other hand, the headwind caused by higher U.S. tariffs is becoming more apparent.

At 2.4%, eastern EU countries are expected to grow at around the same rate as in 2025, supported by rising government spending and solid growth in private consumption.

For the United Kingdom, we expect growth (+0.9%) to be slightly lower than in 2025 (+1.3%) as fiscal policy is tightened and private spending is dampened by rising social security contributions.

In the United States, the demand-dampening effects of higher import tariffs and a weaker exchange rate are expected to become more apparent. In addition, the restrictive immigration policy will increasingly be reflected in the labor supply. On the positive side, tax cuts will have an expansionary effect, allied with a possible improvement in the trade balance and private consumption that remains stable overall. Overall, we expect growth of 2.3% in 2026 (2025: +2.3%).

¹ Our assumptions account for current estimates by external institutions, including economic research institutes, banks, multinational organizations and consulting firms.

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In China, the economy is expected to experience weaker growth. We expect growth in 2026 to be broadly in line with the target of the Chinese government and will be around $4.5\%$ (2025: $+5.0\%$ ). This forecast assumes that China will manage a modest increase in exports in bilateral trade despite the higher import tariffs imposed by the United States, that private consumption will continue to rise and that investment will gather pace again at the beginning of the new five-year plan.

We expect growth to slow slightly for the other emerging Asian markets in the somewhat weaker global environment. Growth prospects in the region remain high due to integration in international supply chains and increasing local demand (2026: $+5.0\%$ , 2025: $+5.9\%$ ). In India, we expect above-average growth of around $6.5\%$ , and for the ASEAN countries growth of slightly more than $4\%$ .

For Japan, we expect slightly weaker GDP growth again (2026: $+0.5\%$ , 2025: $+1.2\%$ ). Overall, economic momentum in Japan remains subdued because the central bank is gradually raising interest rates, real income increases are comparatively modest and exports are suffering from higher U.S. tariffs.

In South America, we anticipate weaker overall growth (2026: $+2.1\%$ , 2025: $+2.8\%$ ). Argentina is unlikely to be able to maintain the high growth of over $4\%$ witnessed in 2025, even if the economic tailwind derived from reforms continues. We forecast growth of around $3\%$ . Growth in Brazil is expected to slow to just under $2\%$ . This means that the cyclical slowdown in the economy, already evident in the second half of 2025, is set to continue.

Outlook for gross domestic product 2026 and 2026-2028

Real change compared with previous year	2026	2026–2028
World	2.7%	2.6%
European Union	1.2%	1.5%
United States	2.3%	1.9%
China	4.5%	4.2%
Emerging markets of Asia excluding China	5.0%	5.0%
Japan	0.5%	0.5%
South America	2.1%	2.4%

Outlook for Key Customer Industries

We anticipate global industrial production will increase by $2.3\%$ (2025: $+2.9\%$ ). It is expected to grow only marginally in the advanced economies (2026: $+0.7\%$ , 2025: $+0.6\%$ ). Growth is likely to decline slightly in the emerging markets (2026: $+3.5\%$ , 2025: $+4.7\%$ ).

We expect the entire transportation industry $^{1}$ to stagnate after growth of $3.3\%$ in 2025. For the production of passenger cars and light commercial vehicles, we now expect a slight decline after the significant growth in 2025. Global production will decline from just under 93 million vehicles to 92.6 million vehicles. For the market in China, we now expect a slight decline after the strong growth in 2025. We also anticipate a decline in production for the EU, the United States, South Korea and Japan. Countervailing positive momentum is coming from India and the ASEAN countries. The share of battery electric vehicles (BEVs) in the total production volume is expected to increase further from around $16\%$ in 2025 to around $19\%$ in 2026.

BASF Report 2025

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Combined Management's Report
Consolidated Financial Statements
Further Information

Given the slightly weaker global industrial growth, the energy and raw materials sector is likely to grow at a slower pace in 2026 compared with 2025. All subsectors (energy supply, oil and gas production, refining, non-energy raw materials extraction) are expected to contribute to growth. The production of non-energy raw materials is expected to grow slightly faster than oil and gas production.

We expect the construction industry to accelerate moderately, but growth will remain lower than that of global industrial production. The building construction sector remains weak globally, while infrastructure investments continue to grow solidly. In the EU, we anticipate that the residential real estate cycle will have bottomed out, with residential construction expected to grow slightly stronger than in the previous year. In the United States, residential construction investment is expected to continue to fall against the backdrop of interest rates and construction costs remaining high. As infrastructure spending is also only increasing moderately, construction activity in the region is expected to continue to decline overall. For China, we expect a further decline in new residential construction, which will be offset by infrastructure investments, resulting in modest overall market growth.

As in 2025, consumer goods production will grow at a slightly weaker rate than global GDP. Production in the furniture industry is expected to increase again, but will grow only weakly overall. Higher growth rates, which continue to lie below the global GDP growth rate, are expected in the textile and apparel industry. Production of care chemicals is also anticipated to grow at a slightly slower pace than global GDP.

We expect the electronics industry to continue to grow at an above-average rate, although it is forecast to be somewhat weaker than in 2025. Growth continues primarily in computer and communications technology, whereas traditional consumer electronics is likely to see weaker growth.

We expect growth in the health and nutrition sector to be weaker than in 2025 and slightly below the GDP growth rate. As in 2025, growth in the food industry is expected to lag slightly behind global GDP, while slightly higher growth is projected for the pharmaceutical industry, albeit lower than the above-average performance in 2025.

Agricultural production in 2026 is expected to grow slightly less than in 2025, when yields grew at an above-average rate due to favorable weather conditions. In Europe and North America, growth is expected to remain stable but at a low level. In South America, on the other hand, growth is likely to slow significantly following the strong catch-up effects in Brazil in 2025. In Asia, agricultural production is likely to continue to grow solidly overall. However, growth is expected to be slightly subdued in China after the above-average rate in 2025. The other countries in the region are expected to maintain their growth momentum.

Outlook for the Chemical Industry

The global chemical industry (excluding pharmaceuticals) is expected to grow by 2.4% in 2026, slower than in 2025 (+3.6%). As in 2025, we expect production in the mature economies to decline (2026: -0.6%, 2025: -0.7%). Growth in the emerging markets will slow (2026: +3.6%, 2025: +5.3%).

In China, which accounts for half of global chemical production, growth is expected to slow but still remain solid (2026: +4.0%, 2025: +7.0%). We continue to expect a substantial rise in demand from Chinese customer industries overall. In addition, we expect exports to continue to grow, especially to Asia and Europe.

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In the other emerging markets of Asia, we assume that the chemical industry will return to stronger growth after the slight increase in 2025, but this will be below the level of growth in domestic industrial production (2026: +2.6%, 2025: +0.7%).

We foresee a further decline in production for the EU (2026: -0.6%, 2025: -2.1%). Overall, demand from customer industries in Europe remains weak. In foreign trade, import pressure is expected to remain high. At the same time, increased import tariffs in the United States and the weaker U.S. dollar lower the competitiveness of European imports in the United States.

Despite the improved position on export markets, we expect a slight decline in chemical production (-1.0%) for the United States due to weak industrial demand from the automotive industry, the construction sector and the consumer goods industry.

We forecast stagnation for Japan after a decline in production by 0.8% in 2025. This is in line with the overall subdued growth in customer industries.

In South America, chemical production is expected to grow moderately overall, supported by growing demand from all major customer industries.

Outlook for chemical production (excluding pharmaceuticals) 2026 and 2026-2028

Real change compared with previous year	2026	2026–2028
World	2.4%	2.8%
European Union	-0.6%	0.5%
United States	-1.0%	0.5%
China	4.0%	4.0%
Emerging markets of Asia excluding China	2.6%	3.2%
Japan	0.0%	0.3%
South America	2.0%	2.2%

BASF Report 2025

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Outlook 2026

Global economic development in 2026 will be determined by changes in trade policy conditions and ongoing geopolitical uncertainty. Temporary extraordinary effects from early orders and a corresponding buildup of inventories, which supported growth in the previous year, will not occur in 2026. The higher tariffs in the United States are redirecting the global flow of goods and leading to increasing competitive pressure in countries or regions with lower import barriers.

Against this background, we expect more subdued development of the global economy as well as industrial and chemical production in 2026. Our forecast for the BASF Group and its segments assumes that growth in global gross domestic product will be slightly lower and that of global industrial production will be significantly lower than the prior-year level. We expect a further decline in chemical production in the mature economies and weaker growth in the emerging markets. In China, growth will weaken but remain solid as demand from Chinese customer industries continues to grow, supported by exports. In the EU and the United States in particular, we expect a further decline in chemical production due to weak demand and, in the case of the EU, high import pressure. After automotive production increased significantly in 2025, we expect a slight decline in 2026.

Our planning was based on an average oil price of $65 for a barrel of Brent crude and an exchange rate of $1.20 per euro (for more information on the outlook on the economic environment in 2026, see page 81 onward and for opportunities and risks, see page 90 onward).

Earnings and Free Cash Flow Forecast for the BASF Group¹

Forecast at Group level

Million €	2025	2026 forecast
EBITDA before special items	6,554	€6.2 billion to €7.0 billion
Cash flows from operating activities	5,610	€4.9 billion to €5.7 billion
– Payments made for property, plant and equipment and intangible assets	4,267	€3.4 billion
Free cash flow	1,342	€1.5 billion to €2.3 billion

The BASF Group expects EBITDA before special items of between €6.2 billion and €7.0 billion in 2026 (2025: €6.6 billion). The Nutrition & Care and Chemicals segments are likely to increase their earnings significantly, while Industrial Solutions expects a slight increase in earnings. In the Materials and Agricultural Solutions segments, we forecast slightly lower earnings due to currency effects. Surface Technologies' EBITDA before special items is predicted to be significantly below the 2025 level, mainly due to the absence of one-off effects in the Environmental Catalyst and Metal Solutions (ECMS) division.

We expect the BASF Group's free cash flow to be between €1.5 billion and €2.3 billion (2025: €1.3 billion). This is based on forecast cash flows from operating activities of between €4.9 billion and €5.7 billion, minus the expected payments made for property, plant and equipment and intangible assets in the amount of €3.4 billion.

¹ For EBITDA before special items and cash flow, "slight" represents a change of 0.1% to 10.0%, while "considerable" applies to changes of 10.1% and higher. "At prior-year level" indicates no change (+/-0.0%).

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CO₂ Emissions Forecast for the BASF Group

CO₂ emissions are expected to be between 17.2 million metric tons and 18.2 million metric tons in 2026. We expect higher emissions compared to the previous year mainly due to the startup of the Verbund site in Zhanjiang, China, while production volumes at other production sites will remain almost unchanged. We will counteract this increase with targeted measures to reduce emissions, such as further increasing energy efficiency, optimizing processes and continuing the shift to electricity from renewable energies.

Forecast for the Segments

Segment overview

Million €	EBITDA before special items		Segment cash flow
	2025	2026 forecast	2025	2026 forecast
Chemicals	853	Considerable increase	-1,182	Considerable increase
Materials	1,575	Slight decrease	1,054	Considerable decrease
Industrial Solutions	1,200	Slight increase	1,061	Slight decrease
Nutrition & Care	649	Considerable increase	-67	Considerable increase
Surface Technologies	800	Considerable decrease	627	Considerable decrease
Agricultural Solutions	2,081	Slight decrease	1,505	Considerable decrease

In the Chemicals segment, we expect a significant increase in EBITDA before special items in 2026. In both the Petrochemicals and Intermediates divisions, this increase will be mainly attributable to new capacities as a result of the Verbund site in Zhanjiang becoming fully operational. Lower fixed costs in the Intermediates division are expected to support the earnings trend. We assume a considerable improvement in the segment's cash flow compared to 2025. In addition to the expected higher EBITDA in both divisions, this will be mainly driven by the planned further reduction in capital expenditure in the Petrochemicals division.

Compared with 2025, we anticipate a slight decrease in EBITDA before special items for the Materials segment. For the Monomers division, we forecast that earnings will be significantly below the prior-year level, mainly due to weaker margins and currency effects. Conversely, we expect a significant increase in earnings in the Performance Materials division due to higher volumes with stable margins. Segment cash flow is expected to be significantly below the level of the previous year. In the Monomers division, we anticipate a significant decline in cash flow, primarily attributable to an increase in trade accounts receivable and inventories related to the new capacities as a result of the MDI expansion in North America. In the Performance Materials division, segment cash flow is also expected to be significantly lower than the prior-year level, mainly due to rising capital expenditure.

In the Industrial Solutions segment, EBITDA before special items is expected to increase slightly. While we anticipate significant earnings growth for the Performance Chemicals division, mainly due to lower fixed costs, we forecast a slight increase in earnings for the Dispersions & Resins division, mainly due to measures to improve margins as well as lower fixed costs. Segment cash flow is anticipated to be slightly below the prior-year level overall. We expect a significant decline in the Dispersions & Resins division, mainly due to increased capital expenditure. This development will more than offset the expected significant increase in the Performance Chemicals division, which will mainly result from higher EBITDA.

BASF Report 2025

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In the Nutrition & Care segment, we expect a significant increase in EBITDA before special items in 2026, mainly due to increased volumes in the Nutrition & Health division, after the previous year had been impacted by the consequences of force majeure events. However, the regulatory required maintenance shutdowns in the first and second quarters of 2026 will have an offsetting effect. The Care Chemicals division anticipates significantly higher earnings, as the effects of persistently high competitive pressures and squeezed margins are expected to be offset by additional volumes from new plants and slightly lower fixed costs. Segment cash flow is expected to increase significantly in 2026 in both divisions, primarily due to lower capital expenditures as well as higher earnings.

In the Surface Technologies segment, we anticipate a significant decline in earnings, particularly since the earnings of the ECMS division were positively influenced by one-off effects in 2025. The Battery Materials division is also predicted to have a significantly lower result, as higher fixed costs due to discontinued subsidies will only be partially offset by a slightly higher contribution margin. In addition, the earnings contributed by the Brazilian decorative paints business, which was sold on October 1, 2025, are no longer included in the segment. Overall, segment cash flow is forecast to be significantly below the prior-year figure. This is based on the fact that we expect negative effects from working capital in the Battery Materials division, while lower EBITDA will be the main factor in the ECMS division.

In the Agricultural Solutions segment, EBITDA before special items for 2026 is expected to be slightly lower than in the previous year. We expect rising volumes and lower fixed costs to be more than offset by negative currency effects. Compared to 2025, we expect a significant decline in the segment's cash flow, mainly attributable to lower positive contributions from working capital, especially from trade accounts receivable.

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Capital Expenditures (Capex)

In 2026, the BASF Group is planning capital expenditures of around €3.3 billion (additions to property, plant and equipment excluding acquisitions, IT investments, restoration obligations and right-of-use assets arising from leases). As planned, these will be below the level of depreciation and amortization. For the four-year period from 2026 to 2029, we are planning capital expenditures totaling €13.0 billion, including around €0.8 billion for the new Verbund site in China. The investment volume in the next four years (2026-2029) will be considerably below that of the planning period 2025 to 2028 (€16.2 billion).

Projects currently being planned or underway include:

Capex: selected projects

Location	Project
Geismar, Louisiana	Capacity expansion at MDI plants
Ludwigshafen, Germany	Construction of a new production plant for semiconductor-grade sulfuric acid
Ludwigshafen, Germany	Expansion of Neopore production capacity
Zhanjiang, China	Construction of an integrated Verbund site

Capex by segment 2026-2029

Capex by region 2026-2029

BASF Report 2025

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Distribution to Shareholders

BASF has set itself the target of distributing at least €12 billion to shareholders from 2025 to 2028 through a combination of dividends and share buybacks.

Specifically, the company intends to pay a dividend of at least €2.25 per share or around €2 billion each year. The proposed dividend¹ for the 2025 business year is consequently €2.25 per share (dividend for the 2024 business year: €2.25 per share). The total dividend distribution of at least around €8 billion over the four-year period will be supplemented by share buybacks of at least around €4 billion.

As announced as part of the "Winning Ways" strategy, share buybacks were planned to start in 2027 at the latest. In view of the cash inflows already received and still expected, in particular from portfolio measures, the Board of Executive Directors of BASF SE has resolved to buy back shares with a volume of up to €1.5 billion between November 2025 and the end of June 2026. This accelerated share buyback is part of the share buyback announced in September 2024 for a total of at least €4 billion by the end of 2028. BASF SE will redeem the repurchased shares and reduce the share capital accordingly.

Financing

BASF intends to significantly reduce its net debt. Maturities from outstanding bonds and bank loans will allow a significant reduction in debt in 2026. For the scheduled repayment of these liabilities, we expect cash outflows of around €2.2 billion in 2026. To optimize our maturity profile, we continue to have medium- to long-term corporate bonds and our global commercial paper program at our disposal (for more information, see page 58).

BASF continues to strive for a single A credit rating, which ensures unrestricted access to financial and capital markets.

Events after the Reporting Period

On January 13, 2026, BASF announced that it had reached an agreement with the private equity firm Paine Schwartz Partners and other shareholders to acquire their portfolio company AgBiTech, Brisbane, Australia. AgBiTech specializes in biological insect control solutions. The transaction is structured as a share deal and includes all assets such as portfolio, intellectual property rights, production plants, research and development facilities and employees. Subject to approval by the competent authorities, the transaction is expected to close during the first half of 2026. The activity will then be reported in the Agricultural Solutions operating division.

¹ Dividend proposed by the Board of Executive Directors

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Opportunities and Risks

The goal of BASF’s risk management is to identify and evaluate opportunities and risks as early as possible and to take appropriate measures to seize opportunities and limit risks. The aim is to prevent any threat to BASF’s continued existence and to create value through improved managerial decisions. We understand opportunities and risks to be any event that can positively or negatively impact the achievement of our short-, medium- or long-term goals.¹

Where quantifiable, we measure and manage opportunities and risks in terms of probability of occurrence and economic impact should they materialize. We use statistical methods to aggregate opportunities and risks into risk categories. In addition, we use a qualitative evaluation scale for opportunities and risks to assess both business and sustainability-related aspects that cannot be quantified. This approach provides an integrated overall view that enables us to assess economic and sustainability-related opportunities and risks at Group level based on the greatest economic impact or qualitative evaluation and probability, and to implement effective risk management measures.

Overall Assessment

For 2026, we expect slightly weaker global economic growth than in 2025, as well as slightly weaker growth on the chemicals market. Overall macroeconomic uncertainty will remain high.

A further escalation of current geopolitical conflicts could lead to disruptions in global supply chains and to greater constraints on the supply of energy, industrial raw materials and intermediates. The war in Ukraine and the situation in the Middle East continue to pose significant risks to market development and the supply of raw materials. Owing to the continued high uncertainty related to increased U.S. tariffs and potential countermeasures by trading partners, the effects on volumes, prices and competitive dynamics – and the associated opportunities and risks – are currently difficult to assess.

Additional opportunities may arise particularly from stronger economic growth if the macroeconomic development proves better than assumed. Moreover, significant opportunities and risks to our earnings arise from volatile margins. Our assessment of opportunities and risks stemming from margin and currency volatilities is based on forward-looking market-related assumptions.

According to our assessment, there continue to be no significant individual risks that pose a threat to the continued existence of BASF SE or the BASF Group. The same applies to the sum of all risks (for more information, see page 145 onward).

Ultimately, residual risks (net risks) remain in all business activities that cannot be eliminated, even by comprehensive risk management.

¹ At the beginning of the one-year assessment period, the targets correspond to the forecasts.

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Potential short-term effects on EBITDA of key opportunity and risk factors subsequent to measures takenᵃ

| Possible variations related to: | Outlook
- 2026 + | | |
| --- | --- | --- | --- |
| Business environment and sector | | | |
| Market growth | | | |
| Margins | | | |
| Competition | | | |
| Regulation/policy | | | |
| Company-specific opportunities and risks | | | |
| Procurement | | | |
| Supply chain | | | |
| Investments/production | | | |
| Personnel | | | |
| Information technology | | | |
| Compliance/legal | | | |
| Tax and customs duties | | | |
| Financial | | | |
| Exchange rate volatility | | | |
| Other financial opportunities and risks | | | |
| | >€10 million <€100 millionᵇ | | |
| | ≥€100 million <€500 million | | |
| | ≥€500 million <€1,000 million | | |
| | ≥€1,000 million <€1,500 million | | |

ᵃ Using a 95% confidence interval per risk factor based on planned values; summation is not permissible. For more information on operational opportunity and risk factors, see page 106 onward.
ᵇ As of the business year 2025, material opportunities and risks >€10 million are reported.

Risk Management Process and Internal Control System

ESRS 2 GOV-5

The BASF Group's risk management process is based on the international risk management standard COSO II Enterprise Risk Management – Integrated Framework. It comprises the risk management system, the internal control system and compliance management and has the following key features:

Organization and responsibilities

Risk management and the internal control system are the responsibility of the Board of Executive Directors. The Board defines the fundamental policies and processes as well as the organization of the risk management system. It also defines the processes for approving investments, acquisitions and divestitures.
The Board of Executive Directors is supported by the Corporate Center. The Corporate Center units Corporate Finance, which reports to the Chief Financial Officer, and Corporate Development, which reports to the Chairman of the Board of Executive Directors, and the head of our Legal and Compliance organization (Chief Compliance Officer, CCO) coordinate the risk management process at Group level. This involves examining economic and sustainability-related opportunities and risks and

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providing structures as well as appropriate methodologies. Opportunity and risk management is thus integrated into the strategy, planning and budgeting processes.

BASF's Risk Committee reviews the BASF Group's risk portfolio at least twice a year to evaluate any adjustments to risk management measures and informs the Board of Executive Directors of these. Members of the Risk Committee are the President of Corporate Finance (chair), the President of Corporate Development, the President of Corporate Legal, Compliance & Insurance and the heads of the Corporate Audit, Corporate Environmental Protection, Health, Safety & Quality, Corporate Treasury, and Group Reporting & Performance Management departments.
The management and control of specific opportunities and risks is largely delegated to the operating divisions, the Corporate Center and service and research units, and is steered at a decentralized level. As part of the "Winning Ways" strategy, the management of opportunities and risks at regional level was restructured in 2025 and, except for a few remaining country organizations, integrated into the divisions. This also applies to sustainability-related topics relevant to BASF in accordance with the ESRS, such as the impact of climate change on BASF. A network of risk managers in the operating divisions, in the Corporate Center and service and research units drives the implementation of suitable risk management practices in day-to-day operations. Selected financial risks are managed centrally: Liquidity, currency and interest rate risks are handled by Corporate Finance; commodity price risks are managed by Global Procurement or other authorized units.
In order to ensure the efficacy of risk management in the operating divisions as well as in the Corporate Center and the service and research units, Corporate Finance performs integrated checks within risk reporting and also regularly reviews compliance with internal risk management guidelines. The BASF Group's management is informed of short-term operational opportunities and risks that fall within an observation period of up to one year in the monthly Management Report produced by Corporate Finance. In addition, Corporate Finance provides information twice a year on the aggregated opportunity/risk exposure of the BASF Group, including information about risk management measures and the corresponding residual net risks. Furthermore, any arising individual risks with a probability of occurrence of at least 10% that have an impact of more than €10 million on earnings or any risks qualitatively evaluated to have a material impact on our sustainability targets as well as on our reputation must be internally reported immediately to the responsible member of the Board of Executive Directors. The Supervisory Board is informed annually about short-term operational opportunities and risks. Once each year, the Audit Committee also addresses the internal control system and risk management system as well as their further development.
As part of strategy development, the Corporate Development unit conducts strategic opportunity/risk analyses with a five-year medium-term assessment period. These analyses are annually reviewed as part of strategic controlling and are adapted if necessary. In addition, scenarios are created to simulate potential impacts from a long-term perspective, including in the context of climate policy developments beyond the five-year period. The Board of Executive Directors and Supervisory Board are informed annually about strategic opportunities and risks.
We also regularly consider exceptional situations that can have a fundamental impact on the BASF Group – from process safety incidents and goods spillages to pandemics and cyberattacks. In addition, we have established a crisis management organization that proactively draws up crisis plans where necessary and appropriate and which is activated in the event of a sudden crisis (for more information, please see page 248 onward).

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BASF's CCO manages the implementation of our Compliance Management System, supported by compliance officers worldwide. At the beginning of each financial year, the CCO reports to the Board of Executive Directors on implementation status and significant outcomes. In addition, twice a year the head of the Corporate Compliance unit reports to the Audit Committee of the Supervisory Board on the main developments in the area of compliance. The Board of Executive Directors immediately informs the Audit Committee about significant incidents (for more information on compliance, see page 288 onward).

Organization of the BASF Group's risk management

a The Corporate Audit unit is part of the Corporate Center.
b Head of the Corporate Legal, Compliance & Insurance unit

Risk-specific monitoring and control systems, some of which are decentralized, have been set up for each area identified in the risk portfolio. The results of the monitoring processes are incorporated into regular risk reporting to the Risk Committee and the Board of Executive Directors. Compared with internal control systems in financial reporting, these monitoring and control systems in other subject areas have a lower degree of formalization. As a rule, however, they also include organizational security precautions such as compliance with the basic principles of transparency, dual control, segregation of duties and least privilege, deployment of sufficiently qualified employees and adequate IT systems. The design of internal controls depends on the subject area. It ranges from monitoring the development of specific key indicators and evaluating internal and external reports or benchmarking analyses to formalized committee meetings in which decisions are made on applications for investments or research projects, for example. In addition, the appropriateness and effectiveness of the topic-specific internal control systems are monitored by the Corporate Center units responsible for the respective topics. To this end, the individual Corporate Center units choose different approaches depending on the subject area, such as the evaluation of questionnaires for self-assessment of the effectiveness of the internal control system, sample tests to validate the implementation and effectiveness of internal controls or the monitoring of compliance-related key indicators.
The Corporate Audit department is responsible for regularly auditing the effectiveness and appropriateness of the risk management system, internal control system and the compliance management system.

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In addition, the Audit Committee addresses the effectiveness and appropriateness of these systems as part of its monitoring activities. The suitability of the early risk detection system set up by the Board of Executive Directors in accordance with section 91(2) of the German Stock Corporation Act (AktG) is assessed and evaluated by the statutory auditors.

Tools

The Governance, Risk Management, Compliance (GRC) Policy, applicable throughout the Group, forms the framework for risk management and is implemented by the operating divisions, the Corporate Center and the service and research units in relation to the specific business conditions.
A register of opportunity and risk categories helps identify all relevant economic and sustainability-related opportunities and risks relating to our targets as comprehensively as possible. We derive the sustainability-related opportunities and risks from the double materiality assessment, in accordance with ESRS requirements.
The positive contributions and negative impacts of our business activities on sustainability topics along the value chain, and the impact of sustainability topics on our business, are assessed in a materiality assessment. Opportunities and risks for our business activities that could arise from material sustainability topics, or for sustainability topics that could arise from our business activities, can only rarely be measured in specific financial terms and mainly have a medium- to long-term impact. Relevant sustainability topics are systematically considered in our strategic and operational risk management on the basis of our integrated risk catalog. The results are presented in the respective chapters (for more information, see page 163 onward).
We also systematically assess opportunities and risks with effects that cannot yet be measured in monetary terms, such as climate and reputational risks. To reflect these, risks for companies in connection with the transition to a low-emission economy (transition risks) as well as climate-related physical risks as defined by the Task Force on Climate-related Financial Disclosures (TCFD), among others, were added to this register.
Because global climate policy ambitions and the implementation of the relevant measures play a decisive role in the future growth of the chemical industry and its customer industries, we defined and quantified global long-term scenarios (up to 2050) with various global warming paths. The scenarios are regularly adapted in response to current macroeconomic and geopolitical developments. A dataset of scenario-specific macroeconomic parameters is provided to test the economic feasibility of investments and business strategies.
We use the results of the double materiality assessment to document reportable sustainability risks within the meaning of section 289b et seq. of the German Commercial Code. This indicated that there were no reportable residual net risks within the meaning of section 289b et seq. of the German Commercial Code for 2025 (for more information, see page 147 onward).
We use standardized evaluation and reporting tools for the identification and assessment of risks. The aggregation of opportunities, risks and sensitivities at division and Group level using a Monte Carlo simulation helps us to identify effects and trends across the Group at an early stage. We base our sensitivities to oil and gas prices and currency developments on forward-looking assumptions in order to reflect specific market expectations and improve the quality of our forecasts. We also aggregate qualitatively assessed risks at Group level using an established risk portfolio.
Our Group-wide Compliance Program is designed to ensure adherence to legal regulations and the company's internal guidelines. Our global employee Code of Conduct firmly embeds these mandatory standards into everyday business. Members of the Board of Executive Directors are also expressly obligated to follow these principles (for more information, see page 288 onward).
(Based on the reviews and findings of the risk management process, the Board of Executive Directors has no indication that BASF's risk management system and the internal control system are not adequate or effective in all material respects.)

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Significant Features of the Internal Control and Risk Management System with Regard to the Group Financial Reporting Process

The Combined Management's Report and the Consolidated Financial Statements are prepared by a unit in the Corporate Finance department. The Consolidated Financial Statements are derived from the individual financial statements of the subsidiaries and joint operations, taking into account the relevant data for the joint ventures and associated companies accounted for using the equity method. The BASF Group's accounting process is based on a uniform accounting guideline. On the one hand, this regulates how the International Financial Reporting Standards (IFRS®) applicable in the European Union are to be applied at BASF. On the other hand, it determines the key processes and deadlines throughout the Group. There are binding directives for the internal reconciliations and other accounting operations within the Group. Standard software is used to carry out the accounting processes for the preparation of the individual financial statements as well as for the Consolidated Financial Statements. There are clear rules for the access rights of each participant in these processes.

Employees involved in the accounting and reporting process meet the qualitative requirements and participate in training on a regular basis. There is a clear assignment of responsibilities between the specialist units, companies and service units involved. We strictly adhere to the principles of segregation of duties and dual control ("four-eyes principle"). Complex actuarial reports and evaluations are produced by specialized service providers or specially qualified employees.

An internal control system for financial reporting continuously monitors these principles. To this end, methods are provided to ensure that evaluation of the internal control system in financial reporting is structured and uniform across the BASF Group. These are based on the international standard COSO I Internal Controls – Integrated Framework, which forms an integral part of the international risk management standard COSO II Enterprise Risk Management – Integrated Framework.

Material risks for the BASF Group regarding a reliable control environment for proper financial reporting are reviewed and updated on an annual basis. Risks are compiled into a central risk catalog.

Moreover, a centralized selection process identifies companies that are exposed to particular risks, that are material to the Consolidated Financial Statements of the BASF Group, or that provide service processes. The selection process is conducted annually. Persons responsible for implementing the requirements for an effective control system in financial reporting are appointed at the relevant companies.

The process for identifying, evaluating, managing and controlling risks related to preparing the Consolidated Financial Statements as well as the monitoring of these processes in the selected companies comprise the following steps:

Evaluation of the control environment
Adherence to internal and external guidelines that are relevant to the maintenance of a reliable control environment for financial reporting is checked by means of a standardized questionnaire.
Identification and documentation of control activities
In order to mitigate the risks to the financial reporting processes listed in our central risk catalog, critical processes and control activities are documented.
Assessment of control activities
After documentation, a review is performed to verify whether the described controls are capable of adequately covering the risks. In the subsequent test phase, spot checks are carried out to test whether, in practice, the controls were executed as described and were effective.

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Further Information

Monitoring of control weaknesses
The responsible management receives reports on any control weaknesses identified and their resolution, and an interdisciplinary committee investigates their relevance to the BASF Group. The Board of Executive Directors and the Audit Committee are informed if control weaknesses with a considerable impact on financial reporting are identified. Only after material control weaknesses have been remedied does the company's managing director confirm the effectiveness of the internal control system.
Internal confirmation of the internal control system
All managing directors and chief financial officers of each consolidated Group company must confirm to the Board of Executive Directors of BASF SE every half-year and at the end of the annual cycle, in writing, that the internal control system is effective with regard to accounting and reporting.

Operational Opportunities and Risks

Market growth

Opportunities and risks arise from the development of our sales markets. For more details on our assumptions regarding short-term growth rates for the global economy, regions and key customer industries, such as the chemicals, automotive and construction sectors, see Economic Environment in 2026 from page 81 onward.

We also consider opportunities and risks caused by developments that deviate from assumptions. Macroeconomic opportunities arise from an easing of geopolitical conflicts and the resulting increase in the supply of energy, industrial raw materials and other intermediate goods.

Increases in energy prices caused, for example, by the war in Ukraine and the situation in the Middle East, and the higher inflation rates resulting from this for manufacturer and consumer prices pose a risk to the economy. Additional macroeconomic risks result from the escalation of geopolitical conflicts and a further intensification of global trade conflicts, especially between the United States and its trading partners. We constantly monitor these risks and mitigate them as much as possible through our diversified customer and product portfolio and our principle of producing close to our customers and mainly procuring raw materials and intermediate input in the relevant region.

Weather-related influences can result in positive or negative effects on our business, particularly in the Agricultural Solutions segment.

In view of the expected delay in market recovery, the identified market growth opportunities are increasingly taken into account.

Margins

The greatest opportunities and risks for the BASF Group primarily result from higher or lower margins in all segments, particularly the Chemicals segment. Continuing pressure on margins for a number of products and value chains may lead to further declining margins. Additional shortages of raw materials could have both a negative and positive impact on margins. This would have a corresponding effect on our EBITDA. We counter margin risks with ongoing cost and price management as well as process optimization.

The year's average oil price for Brent crude was $69 per barrel in 2025, compared with $81 per barrel in the previous year. For 2026, we anticipate an average oil price of $65 per barrel.

Compared with the previous year, we see lower margin risks.

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Competition

We continuously enhance our products and solutions in order to remain competitive. The market entry of new competitors and increased price pressure may lead to lower margins and volumes, particularly in the Agricultural Solutions and Industrial Solutions segments. We counter these risks through our margin management and other measures, such as the targeted promotion of innovations, for example in the area of sustainability.

Possible supply problems and the withdrawal of some competitors due to the current difficult market environment may give rise to opportunities that we can use to our advantage.

Compared with the previous year, we see greater opportunities for competitiveness.

Regulation/policy

Risks for us can arise from intensified geopolitical tensions, new trade sanctions, a lack of global coordination for stricter emission limits for production plants and stricter energy and chemicals legislation as well as a lack of social acceptance of new technologies, particularly in the EU. Furthermore, risks can also arise from regulatory delays in the expansion of capacities and infrastructure for electricity from renewable sources, the necessary CO₂ infrastructure and delayed product approvals.

However, regulatory measures and societal expectations can also give rise to opportunities. For example, we view initiatives around the world to increase energy efficiency and reduce greenhouse gas emissions as a strategic opportunity for increased demand for products such as our insulation foams for buildings, catalysts, battery materials for electromobility, or our solutions for wind turbines (for more information, see page 147 onward).

Procurement and supply chain

Operational risks in procurement are a key topic for BASF, as they can impact the company's supply capability and therefore its competitiveness. Operational risks in procurement include disruptions and delays in the delivery of raw materials due to supplier insolvencies, quality concerns, extreme weather or geopolitical events, for example. To counter these risks, BASF relies on comprehensive risk assessment and control along the entire supply chain, global diversification and close cooperation with suppliers (for more information, see page 264 onward).

Compared with the previous year, we see lower risks in the supply chain.

Investments/production

We try to prevent unscheduled plant shutdowns by adhering to high technical standards and by continuously improving our plants. We reduce the effects of an unscheduled shutdown on the supply of intermediate and end products through diversification within our global Production Verbund.

In the event of a production outage – caused by an accident, for example – our global, regional or local emergency response plans and crisis management structures are engaged, depending on the scope of impact. Crisis management teams at country level not only coordinate the necessary emergency response measures, they also initiate immediate measures for damage control and resumption of normal operations as quickly as possible.

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Crisis management also includes dealing with extreme weather conditions such as hurricanes (for example, at the sites in Freeport, Texas, and Geismar, Louisiana) or significantly elevated water temperatures in rivers due to extended heat waves, which limit the available cooling capacity. Appropriate precautions are taken at the sites in the case of a change in risk associated with climate change. For example, due to an increase in heat waves, we have implemented several measures at the Verbund sites in Ludwigshafen, Germany, and Geismar in recent years to increase cooling capacity, such as expanding and optimizing the central recooling plants and optimizing cooling water flows. These optimization measures are designed to prevent production outages due to extreme heat waves.

Short-term risks from investments can result from, for example, technical malfunctions or schedule and budget overruns. We counter these risks with stringent project management and controlling.

In view of current idle capacity, additional opportunities may arise, for example through greater flexibility for maintenance and lower impact from possible production disruptions.

Compared to the previous year, we foresee greater opportunities from investments/production.

Personnel

Due to BASF's worldwide compensation principles, the development of personnel expenses is partly dependent on the amount of variable compensation, which is linked to the company's success, among other factors. The correlation between variable compensation and the success of the company has the effect of minimizing risk. Another factor is the development of interest rates for discounting pension obligations. Furthermore, changes to the legal environment of a particular country can influence the development of personnel expenses for the BASF Group. For countries in which BASF is active, we therefore constantly monitor the relevant developments in order to identify risks at an early stage and take suitable measures (for more information, see pages 96 and 248 onward).

Information technology

BASF employs a large number of modern IT systems. Technologies such as artificial intelligence (AI), big data and the Internet of Things (IoT) help us to develop new business models, corporate concepts and strategies and to respond flexibly to changing customer behavior. The global cyber security team protects these systems, as well as the data and business processes they handle.

The requirements for IT security are constantly increasing in a networked and dynamic world. Attackers are much better organized, use more sophisticated techniques and have more resources at their disposal.

A cyber attack can negatively affect asset reliability, delivery quality or the accuracy of our financial reporting. Unauthorized access to sensitive data, such as personnel records or customer data, competition-related information or research results, can result in liability claims against BASF or jeopardize our competitive position. In addition, there is a risk of financial losses as well as reputational damage with customers and partners regarding the security of our products and services.

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To minimize such risks, BASF relies on globally uniform processes and systems to ensure IT availability and IT security. These are based on the ISO 27001 standard and include redundantly designed IT systems, backup processes, virus and access protection, encryption technologies and standardized IT infrastructures and processes. These systems are continuously reviewed, updated and adjusted as necessary. In addition, BASF has a dedicated cyber defense unit with appropriate expertise. Our employees receive regular training on information and data protection. Cybersecurity risk management is based on clearly defined organizational rules and an internal control system. The Board of Executive Directors and the Supervisory Board receive regular reports on cyber risks and the implementation status of strategic cybersecurity measures.

Our protection concepts include the detection of attacks, appropriate response and defense, as well as minimizing effects. We also maintain strong partnerships with security authorities and associations in the field of cybersecurity, for example with the German Cyber Security Organization (DCSO) and the Cyber Security Sharing and Analytics (CSSA) platform in Berlin, Germany. In addition, BASF has its own information security management system, which is certified according to ISO/IEC 27001:2017.

Cybersecurity risks have been identified for the 2026 business year, but not quantified. Quantified opportunities and risks arose in connection with the BASF Group's ERP transformation projects.

Compliance/legal

We constantly monitor current and potential legal disputes and proceedings, and regularly report on these to the Board of Executive Directors and the Supervisory Board. In order to assess the risks from current legal disputes and proceedings and any potential need to recognize provisions, we prepare our own analyses and assessments of the circumstances and claims considered. In addition, in individual cases, we consider the results of comparable proceedings and, if needed, independent legal opinions. Risk assessment is particularly based on estimates as to the probability of occurrence and the range of possible claims. These estimates are the result of close cooperation between the relevant operating and service units together with Corporate Legal and Corporate Finance. If sufficient probability of occurrence is identified, we recognize a provision for the proceeding concerned. Should a provision be unnecessary, we continue to assess whether these litigations nevertheless represent a risk to the BASF Group's EBITDA as part of general risk management (for more information, see page 388 onward).

We use our internal control system to limit risks from potential infringements of rights or laws. For example, we try to avoid patent and licensing disputes whenever possible through extensive clearance research.

Tax and customs duties

The recognized opportunities and risks only concern taxes, customs duties and other levies that impact the BASF Group's EBITDA in the short term. These arise when BASF has taken a position that differs from the opinion of a competent administrative authority. If a payment has already been made and could be reclaimed, we present this as an opportunity. Conversely, if a potential payment is outstanding in accordance with the administrative opinion, this is a risk. We primarily evaluate opportunities and risks with regard to their probability of occurrence and, if necessary, set up a provision for the relevant risk. If a provision is not necessary, we take this into account in determining EBITDA-relevant risks for the BASF Group.

Compared with the previous year, we foresee higher customs-related risks.

BASF Report 2025

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Combined Management's Report
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Exchange rate volatility

Our competitiveness on global markets is influenced by fluctuations in exchange rates. For BASF's sales, opportunities and risks arise in particular when the U.S. dollar exchange rate fluctuates. On the production side, we counter exchange rate risks by producing in the respective currency zones.

The current assessment of the U.S. dollar suggests greater opportunities and lower risks compared to the previous year.

Financial currency risks result from the translation of receivables, liabilities and other monetary items in accordance with IAS 21 at the closing rate into the functional currency of the respective Group company. If necessary, we hedge these risks using derivative instruments.

Other financial opportunities and risks

Financial risks arise from unplanned cost increases, for example due to higher inflation than assumed. Additional financial risks are related to efficiency measures that may not be effective as planned. Other financial risks, including commodity price risks, particularly relating to raw materials such as naphtha, benzene, natural gas, LPG condensate as well as precious metals and battery metals, are hedged as needed using derivative instruments. There are no significant default risks that have not already been recognized in the financial statements. For more information, see Note 25 to the Consolidated Financial Statements from page 393 onward.

In connection with the war in Ukraine, additional financial risks may arise from potential asset impairments or losses.

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Strategic Opportunities and Risks

Long-term demand development

We assume that growth in chemical production (excluding pharmaceuticals) will be roughly keep pace with gross domestic product in the coming years. Should global economic growth see unexpected, considerable deceleration, for example, because of an ongoing weak period in individual emerging markets, increasingly protectionist tendencies or bottlenecks in the energy markets, the expected growth rates could prove too ambitious.

Additional risks arise from geopolitical tensions and military conflicts, which could impact supply chains and reduce efficiency in the international allocation of resources. Moreover, the ambitions of global climate policy and its implementation will significantly impact demand from our customer industries. This is shown by a comparison of climate policy scenarios that envisage limiting global warming to below two degrees Celsius with alternative scenarios that assume more warming. In ambitious climate policy scenarios, the structure of demand changes due to the use of alternative energy sources and raw materials, high investment in resource-conserving technologies, and changing customer preferences and macroeconomic growth rates may be lower.

Market opportunities in ambitious climate policy scenarios include, for example, feedstocks that make plastics easier to recycle, stronger demand for insulation materials for buildings, increased electromobility with changed demand for plastics, insulation materials, coolants and battery materials, and more alternative proteins in agriculture. By contrast, fossil feedstocks and the production technologies and product segments based on fossil feedstocks will become less important. This requires further decarbonization of production processes and alternative raw materials, as well as a corresponding willingness to pay on the part of customer industries, in order to remain competitive (for more information on the corporate strategy, see page 15 onward).

Development of competitive and customer landscape

We expect competitors from Asia, North America and the Middle East in particular will also gain increasing significance in the years ahead as a result of advantageous raw materials and energy prices and trade policy measures. Furthermore, we predict that many producers in countries rich in raw materials will expand their value chains in specialty chemicals. In addition, the proliferation of large-scale digital marketplaces for chemicals could impact existing customer and supplier relationships.

In the medium to long term, we expect increasing demand from our customers for more sustainable solutions, such as products with a lower carbon footprint and solutions for the circular economy. These products can be made from recycled or renewable raw materials, for example, or have other measurable sustainability benefits. However, an increase in customer demand for more sustainable solutions is also highly dependent on regulation that leads to a growing willingness to pay for low-emission and recyclable products. Companies with a proven track record of providing more sustainable solutions will then be able to achieve stronger growth and higher profitability. We are therefore addressing these topics in research and investment programs for the sustainable transformation of BASF.

To strengthen our competitiveness, we have initiated cost savings programs, we are continuously improving our production processes, streamlining our structures, simplifying procedures and optimizing our business portfolio. In this regard, our focus is on attractive businesses and differentiation through sustainability advantages, among other things, to make our customers and BASF more successful.

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Regulation, policy and society

We expect continued regulatory and societal pressure to achieve emission-free energy use, a climate-neutral resource and raw material base, and far-reaching environmental targets. This also includes regulations relating to environmental protection, water, biodiversity and the circular economy, which are outlined in the E2 Pollution Prevention, E3 Water, E4 Biodiversity and Ecosystems, E5 Resource Use and Circular Economy and S3 Affected Communities chapters in this report (more on this from page 199 onward). Political solutions and their social acceptance for them will vary from region to region. However, particularly in Europe, we expect measures with a continuously high level of detailed and complex regulation, including changes to chemical and industry-related regulations that have the potential to significantly impact the competitiveness of BASF's operations and product portfolio as well as those of our customers. Another overarching risk is that political decision-makers may not act quickly and decisively enough to create the necessary framework conditions for a competitive location for industry.

We see the risk of the current geopolitical shifts potentially leading to the establishment of uncoordinated or divergent global legislative standards and regulatory systems, not just in relation to chemicals or the regulatory framework for digitalization, but also to climate, environmental, social and corporate governance criteria. In addition, we observe a tendency towards increasing state interventionism and protectionism. Such measures can distort competitive conditions and pose risks to global value chains or security of supply. At the same time, the efforts of states to strengthen their own ability to act and achieve greater independence from global interdependencies can also give rise to opportunities. We see risks but also opportunities in the setting of international standards for specific product categories or technologies.

In the event of negative impacts from our production or products along our value chains, societal acceptance of our business activities could suffer in the short to long term, trust in BASF could decline, and the risk of litigation could increase.

We explain our strategy in meetings with political decision-makers and social stakeholders. In doing so, we also inform ourselves of the changes we must undergo and advocate for a favorable and stable regulatory framework at both a national and international level. BASF is in a position to make significant contributions toward achieving the U.N. Sustainable Development Goals, particularly regarding climate neutrality, through new technologies, innovative products and processes and a broad product portfolio.

Innovations

We expect the trend toward increased sustainability requirements in our customer industries to continue. Our aim is to leverage the resulting opportunities in a growing market with more sustainable innovations. The key areas are products with a lower or even net-zero carbon footprint, circular economy solutions, and safe and more sustainable products. To be successful in these fields, we have launched specific research and investment programs for the sustainable transformation of BASF. Furthermore, in order to steer our innovation portfolio toward increased sustainability, we have integrated our TripleS methodology into our research and development processes.

There are technical and commercial risks associated with every single research and development project. We address this by maintaining a balanced and comprehensive project portfolio as well as through professional, milestone-based project management.

Further risks may arise from increasing state protectionism and demands for localization of intellectual property in order to achieve technological independence. Through our global Know-How Verbund in research and development, we ensure that intellectual property is generated and protected in countries with high intellectual property standards. We expect that the digital disruption of established processes through the use of artificial intelligence, among other things, will lead to a considerable increase in efficiency and effectiveness in some fields. BASF is committed to taking a leading role in the digital transformation of the chemical industry. Possible applications of digital technologies and solutions are evaluated along the entire value chain and implemented throughout the company, for example, in production, logistics, research and development, business models and corporate governance (for more information, see page 41 onward).

Procurement and supply chain

Strategic risks in procurement are of great importance to BASF, as they can impact the company's long-term competitiveness and positioning. Strategic risks include structural changes on the global markets, climate change and political developments. Supply security for raw materials, energy and services is increasingly affected by trade disputes, protectionism, sanctions and geopolitical conflicts. To counter these risks, BASF relies on comprehensive risk assessment, a diversified supplier base, close cooperation with various strategic suppliers, including in the area of reducing Scope 3 emissions, and continuous analysis of markets and trends.

We are also seeing an expansion of the regulatory framework affecting us and our suppliers (for example, the German Supply Chain Due Diligence Act, the EU Corporate Sustainability Due Diligence Directive and the EU Regulation on Deforestation-Free Products or the Regulation Establishing a Carbon Border Adjustment Mechanism (CBAM)). Potential noncompliance by our suppliers may lead to a reduced supplier base. All risks are continuously analyzed and appropriate strategies and measures developed to avert risks or minimize their impact on BASF (for more information see page 264 onward). We integrate sustainability and compliance criteria into the procurement strategy in order to minimize regulatory risks.

Investments

We expect growth in chemical production in emerging markets to remain above the global average in the years to come. This will create opportunities that we want to exploit by focusing our investments more closely on growth markets and expanding our local presence. In addition, regional value chains help mitigate risks from trade conflicts and barriers that pose a challenge to global markets and supply chains.

Decisions on the type, scope and location of our investment projects are made on the basis of established comprehensive assessment processes. They take into account long-term forecasts for the market, margin and cost development, and raw materials availability, as well as country, currency, sustainability and technology risks. Opportunities and risks arise from potential deviations in actual developments from our assumptions. Mitigation plans are in place where risks are substantial.

Investments in more sustainable technologies, switching our production to renewable energy sources and harnessing potential energy savings represent a long-term opportunity, even though they may not yet be profitable in the short term, depending on the market and the prevailing regulatory framework (for more on our investment projects, see page 88). The transformation of our company toward low-emission chemistry is presented in detail in the E1 Climate Change chapter.

Acquisitions/divestitures

Our aim is to strengthen our portfolio through value-enhancing acquisitions, among other things, and to realize the value of the standalone businesses. In doing so, we focus on high-growth markets.

The evaluation of opportunities and risks plays a significant role during the assessment of acquisition targets. A detailed analysis and quantification is conducted as part of due diligence. Examples of risks include increased staff turnover, delayed realization of synergies, or the assumption of obligations that were not precisely quantifiable in advance. Opportunities could also arise, for example, from additional synergies. We are also continuing to develop our portfolio through carve-outs and divestitures. In this context, risks could arise as a result of potential warranty claims or other contractual obligations, such as long-term supply agreements (for more information, see page 36).

Personnel

The current economic situation and any resulting structural adjustments at BASF can lead to uncertainty among employees. This poses challenges for the company, for example in terms of maintaining employee commitment. Any supposed decline in the attractiveness of BASF as an employer can make it more difficult to recruit appropriately qualified specialists and managers in global competition. Demographic and technological change, as well as changing competence profiles can also lead to a loss of skills and knowledge in key roles within our workforce or affect our ability to adequately and quickly develop them.

We promote excellent leadership through targeted development opportunities for leaders at all levels. Leaders can positively influence the commitment of their employees and, together with their teams, contribute productively and efficiently to the implementation of our strategic corporate targets.

Further information on how to handle opportunities and risks can also be found in chapter S1 Own Workforce of the company in this report (more on this from page 248 onward).

Climate

As BASF is an energy-intensive company, climate-related risks arise in a physical sense and from regulatory changes, such as in CO_{2} prices through emissions trading systems, taxes or energy legislation. In addition, BASF's emissions footprint and intensity could lead to a negative perception and reduced appeal among external stakeholders such as customers, investors and skilled workers. We counter these risks with our carbon management measures and by transparently disclosing our positions on climate protection and progress in the implementation of our climate strategy, in publicly accessible sources such as this annual report or on the BASF website, and in direct dialog with political decision-makers and external stakeholders (for more information, see page 97).

In order to ensure a well-founded assessment of the changing physical risks of climate change for our sites, BASF conducts comprehensive analyses based on climatic data and modeling from an external partner. The underlying climate scenarios are based on the latest estimates of the Intergovernmental Panel on Climate Change (IPCC). The description of the methodology and the results of these analyses can be found in chapter E1 Climate Change of this report (more on this from page 172 onward).

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Alongside climate-related risks, opportunities also arise for our more sustainable products for climate protection. Our broad product portfolio includes, among other things, solutions for the circular economy and climate protection, such as insulation materials for buildings, materials for electromobility and renewable products. Increased societal demands and the resulting regulations offer additional market opportunities for these products. We are working with numerous scientific and public organizations and initiatives on further solutions for more sustainable agriculture that meet economic, environmental and social demands over the long term (for more information, see page 147 onward).

» For more information on our positions on and contributions to climate protection, see basf.com/climate_protection

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1.4 Disclosures on BASF SE in Accordance with the German Commercial Code (HGB)

The Management's Report of BASF SE is combined with the Management's Report of the BASF Group. As a publicly listed parent company, BASF SE takes a central position in the BASF Group: Directly or indirectly, it holds the shares in the companies belonging to the BASF Group and is also one of the largest operating companies. A complete overview of BASF SE's operating business is provided by the Consolidated Financial Statements of the BASF Group.

Corporate Structure

BASF SE operates the BASF Group's largest Verbund site in Ludwigshafen am Rhein, Germany, and is one of the most important operating companies of the Group. In addition to marketing its own production to third parties, BASF SE supplies its products to other BASF Group companies, which process them in downstream production or sell them on the local market. BASF SE also distributes products from other BASF Group companies. All divisions, with the exception of Coatings, were active within BASF SE in 2025. As the parent company, BASF SE is also responsible for various central tasks, such as Group management and large parts of the Corporate Center. In addition, extensive research activities are bundled here.

As the top parent company, BASF SE directly or indirectly holds the shares in the companies belonging to the BASF Group. This is reflected above all in the financial assets and the financial result.

Due to this distinct integration into the BASF Group, BASF SE is managed within the framework of the BASF Group's Steering Concept and has not implemented a separate steering concept. Income from operations is the most suitable indicator for assessing business performance and is therefore BASF SE's most important financial key performance indicator.

The Financial Statements of BASF SE are prepared in accordance with section 61 of Regulation (EC) No 2157/2001 of October 8, 2001, on the Statute for a European company (SE) and the applicable regulations for public limited-liability companies in the Member State in which it has its registered office, i.e., in accordance with the accounting regulations for the business year ending December 31, 2025, in particular the German Commercial Code (HGB) and the German Stock Corporation Act (AktG). The Consolidated Financial Statements of the BASF Group, however, include the financial statements of BASF SE, which are prepared in accordance with the IFRS® Accounting Standards of the International Accounting Standards Board (IASB®) valid on the balance sheet date and the additional applicable rules under section 315e(1) of the German Commercial Code (HGB). IFRS® Accounting Standards are generally only applied after they have been endorsed by the European Union.

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Combined Management's Report

Consolidated Financial Statements

Further Information

Results of Operations of BASF SE

Statement of income

Million €	2025	2024
Sales revenue	21,040	21,791
Cost of sales	17,951	18,841
Gross profit on sales	3,089	2,950
Selling expenses	1,908	1,886
General administrative expenses	521	529
Research and development expenses	1,176	1,221
Other operating income	937	1,000
Other operating expenses	2,006	1,317
Income from operations	-1,585	-1,003
Income from shareholdings	4,374	3,622
Interest result	-91	367
Other financial result	167	20
Financial result	4,450	4,009
Income before income taxes	2,865	3,006
Income taxes	200	302
Net income	2,665	2,704

BASF SE's sales revenue declined by €751 million to €21,040 million in the fiscal year. Despite higher sales volumes, sales decreased in the operating business due to lower sales prices. The economic environment continues to pose exceptional challenges for the chemical industry in the fiscal year. Against this backdrop, low plant capacity utilization and impairments on property, plant and equipment recorded in cost of sales totaling €54 million continued to have a negative impact on BASF SE's profit. Effects from lower raw material and energy prices as well as from inventory valuation led to a positive earnings contribution in the fiscal year. The decision not to apply the Lifo method resulted in a positive one-off effect of €289 million. Gross profit on sales increased by €139 million overall to €3,089 million.

Income from operations decreased by €582 million to -€1,585 million, whereas we had forecast only a slight decline in earnings. In the previous year, income from operations also benefited on a one-off basis from a change in the actuarial assumptions regarding pension obligations. In the fiscal year, selling expenses increased by €22 million, while administrative expenses decreased by €8 million and research expenses by €45 million. The balance of other operating expenses and income declined by €752 million compared with the previous year to -€1,069 million. Restructuring expenses increased by €333 million, while expenditure for the implementation of other strategic measures increased by €149 million. In addition, out-of-period income decreased by €353 million. Dissolution of provisions decreased by €280 million and gains from asset disposals by €148 million. This was offset by an increase in insurance refunds by €52 million in out-of-period income. In addition, the foreign currency result improved by €50 million and expenses from agreed cost transfers from Group companies decreased by €115 million, expenses for environmental protection measures by €50 million and impairments by €20 million.

BASF Report 2025

Disclosures on BASF SE in Accordance with the German Commercial Code (HGB)

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Combined Management's Report
Consolidated Financial Statements
Further Information

The financial result increased by €441 million to €4,450 million. The increase in income from shareholdings was mainly due to higher profit transfers, in particular due to higher dividends paid by a domestic and a Brazilian Group company. This was mainly offset by lower dividends from a Dutch BASF SE subsidiary.

The lower interest result was mainly due to the decline in income from pension plan assets. The other financial result increased mainly due to higher income in connection with guarantee commissions.

Income before income taxes decreased by €141 million year on year to €2,865 million. Income tax expenses decreased by €102 million in the fiscal year. Due to deferred tax assets and liabilities, €287 million lower expenses were recorded in the business year under review. By contrast, current income tax expenses increased by €185 million.

Net income decreased by €39 million compared with the previous year to €2,665 million in 2025.

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Further Information

Net Assets and Financial Position of BASF SE

Net Assets

Assets

Million €	December 31, 2025	December 31, 2024
Intangible assets	766	947
Property, plant and equipment	3,382	3,341
Financial assets	27,465	27,326
Fixed assets	31,613	31,614
Inventories	3,155	2,940
Accounts receivable, trade	798	862
Receivables from affiliated companies	16,367	16,612
Miscellaneous receivables and other assets	625	702
Receivables and other assets	17,790	18,176
Cash and cash equivalents	1,073	1,112
Current assets	22,018	22,228
Prepaid expenses	139	159
Deferred tax assets	-	-
Total assets	53,770	54,001

Total assets declined by €231 million compared with December 31, 2024, to €53,770 million.

Fixed assets remained at the previous year's level. Intangible assets declined by €181 million. Amortization was higher than investments in the fiscal year. Property, plant and equipment increased by €41 million, with investments slightly higher than depreciation. Impairments amounted to €56 million and write-ups to €42 million in the fiscal year. Financial assets increased by €139 million.

Current assets and other assets decreased by €230 million. Receivables from affiliated companies declined by €245 million due in particular to the repayment of financial investments within the Group, which were offset by higher profit transfers. In addition, trade accounts receivable declined by €64 million and other assets declined by €77 million. Cash and cash equivalents decreased by €39 million and consisted of cash at banks and on hand as of December 31, 2025. By contrast, inventories increased by €215 million, mainly due to a change in accounting and valuation methods.

BASF Report 2025

Disclosures on BASF SE in Accordance with the German Commercial Code (HGB)

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Financial Position

Equity and liabilities

Million €	December 31, 2025	December 31, 2024
Subscribed capital	1,142	1,142
Treasury shares	-10	–
Issued capital	1,132	1,142
Capital reserve	3,172	3,172
Retained earnings	16,895	16,544
Retained profits	2,665	2,704
Equity	23,864	23,562
Special reserves	47	49
Provisions for pensions and similar obligations	708	529
Provisions for taxes	339	201
Other provisions	1,761	1,390
Provisions	2,808	2,120
Financial indebtedness	15,238	17,547
Accounts payable, trade	810	1,044
Liabilities to affiliated companies	10,003	8,760
Miscellaneous liabilities	774	683
Liabilities	26,825	28,034
Deferred income	226	236
Total equity and liabilities	53,770	54,001

Equity increased by €302 million. The net income of €2,665 million was offset by the dividends of €2,008 million paid for the 2024 business year, and share buybacks amounting to €355 million. The corresponding disclosures pursuant to section 160(1) no. 2 of the German Stock Corporation Act (AktG) are contained in Note 15 - Subscribed capital of the BASF SE Annual Financial Statements for 2025.

Provisions increased by a total of €688 million. This included an increase in provisions for pensions of €179 million to €708 million. This was due to the €415 million decrease in plan assets, mainly due to contractually agreed pension pay-outs. Conversely, pension obligations decreased by €236 million, mainly due to benefits paid and changes to actuarial valuation parameters. Pension obligations in the amount of €6,762 million were offset against pension plan assets totaling €6,054 million. Provisions for taxes rose by €138 million. In addition, other provisions increased by €371 million, mainly due to higher provisions for employee obligations, which increased by €365 million. These include, among other things, €243 million higher provisions for restructuring measures.

Liabilities and other items decreased by a total of €1,219 million. Financial indebtedness decreased by €2,309 million, mainly due to repayments. On the other hand, liabilities to affiliated companies increased by €1,243 million, mainly due to the increase in intragroup borrowings.

BASF Report 2025

Disclosures on BASF SE in Accordance with the German Commercial Code (HGB)

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Forecast, Opportunities and Risks of BASF SE

Earnings Forecast

In its forecast, BASF SE essentially makes the same assumptions regarding the development of global economic environment as the BASF Group.

The BASF Group plans for the Agricultural Solutions segment to be ready for listing on the stock exchange by 2027. In this context, the Agricultural Solutions business of BASF SE will be carved out as BASF Agricultural Solutions Deutschland GmbH, subject to the approval of the Annual Shareholders' Meeting of BASF SE. Effective date for the carve-out is January 1, 2026. We expect this carve-out to result in a decline in income from operations of BASF SE in the mid-double-digit million euro range in 2026.

In 2025, income from operations was influenced by expenditure for additional restructuring measures. This was offset in 2025 by one-off extraordinary effects from inventory valuation and insurance refunds, among other things. For 2026, we expect positive earnings contributions from cost-saving measures that have already been implemented as well as additional expenditure for further restructuring measures as part of the implementation of the corporate strategy. These will be offset by lower extraordinary effects on income.

Considering these assumptions, we expect a slight improvement in income from operations in 2026 compared with 2025.

Opportunities and Risks, Risk Management System

BASF SE is generally exposed to the same opportunities and risks as the BASF Group.

BASF SE's internal control and risk management system with regard to the financial reporting process (section 289(4) HGB) is based on a uniform accounting guideline that sets out accounting policies and the significant processes and deadlines on a Group-wide basis. There are binding directives for the internal reconciliations and other accounting operations within the Group. Standard software is used to carry out the accounting processes, and there are clear rules for the access rights of each participant in these processes. The Financial Statements and parts of the disclosures on BASF SE in accordance with the German Commercial Code (HGB) are prepared by a specialist unit in the Global Business Services division.

BASF Report 2025
Disclosures on BASF SE in Accordance with the German Commercial Code (HGB) | 111

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

[Nonfinancial Disclosures of BASF SE]

Due to the importance of BASF SE within the BASF Group, specific disclosures are required when reporting key sustainability-related information. Such disclosures also became mandatory for the parent company of the BASF Group, BASF SE, as a result of the CSR Directive Implementation Act, which came into effect in 2017. An integrated reference option within the (Consolidated) Sustainability Statement was selected in the Management's Report for the Nonfinancial Statement (NFS) to be issued in the reporting year in accordance with sections 289b to 289e of the German Commercial Code (HGB). The table on this and the following page shows the relevant nonfinancial key figures of BASF SE. All disclosures on strategy, due diligence, targets, described processes and key figures contained in the statements in the Combined Management's Report, including the (Consolidated) Sustainability Statement, apply to the BASF Group including BASF SE. No significant deviations were identified for BASF SE.

Nonfinancial disclosures of BASF SE

		2025	2024
Employees	Employees	32,190	33,370
of which apprentices	1,730	1,978
Apprentices in final year of apprenticeship who received a job offera	86	88
Participants in Training Verbund (cooperation with partner companies in the Rhine-Neckar metropolitan region)	48	66
Training Verbund expenses	million €	3
Personnel expenses	million €	3,848
of which wages and salaries	3,040	2,972
of which social security contributions and expenses for pensions and assistance	808	622
of which pension expenses	273	125
Participants in the “plus” employee share program	15,938	17,469
Innovation	Employees in research and development	3,813	3,941
Research and development expenses	million €	1,221
Procurement	Procurement spend	million €	7,126
Safety (process and occupational safety)	Fatality rateb,c	0.0	0.0
Number of fatalitiesb	0	0
High-consequence work-related injury rateb,c,d	0.3	0.3
Recordable work-related injury rateb,c,d,e	8.8	8.8
Number of recordable work-related injuriesb,d,e	538	557
Number of days lost to work-related injuriesb,d	5,171	6,040
Rate of High Severity Work Process Related Injuries per 200,000 working hours	0.02	0.05
Rate of Process Safety Incidents per 200,000 working hours	0.34	0.34
Rate of High Severity Process Safety Incidents per 200,000 working hours	0.06	0.07
Transportation incidents	4	2
Incidents with spillage of more than 200 kilograms of dangerous goods	1	0
of which with significant impact on the environment	0	0
Emergency response	Major incident drills	2	1
Drills and simulations of emergency measures	132	163
Transport-Accident-Information and Emergency-Response-System (TUIS) interventions	113	136
Management systems	Responsible Care audits	33	24

BASF Report 2025

Disclosures on BASF SE in Accordance with the German Commercial Code (HGB)

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Nonfinancial disclosures of BASF SE

			2025	2024
Environmental	Energy demand – electricity	MWh	4,710,631	4,587,399
	Energy demand – steam	metric tons	13,378,523	14,737,149
	Energy demand – fossil fuels in power plants	MWh	12,427,771	12,056,102
	Waste generation	metric tons	675,012	636,663
	of which recycled waste	%	78.8	46.8
	of which waste disposed of	%	21.2	53.2
	of which hazardous waste	%	94.6	98.1
	Emissions of air pollutants (excluding CH4); CO, NOx, NMVOC, SOx, dust, NH3 / other inorganic substances	metric tons	5,212	5,320
	Greenhouse gas emissions: CO2, N2O, CH4, HFC, PFC, SF6	million metric tons of CO2 equivalents	4.8	5.1
	Water withdrawal	million cubic meters	1,091	1,063
	Water use	million cubic meters	1,980	2,021
	Water discharge	million cubic meters	942	962
	Emissions of organic substances to water	metric tons	3,670	4,077
	Emissions of nitrogen to water	metric tons	1,359	1,068
	Emissions of heavy metals to water	metric tons	5	6
	Emissions of phosphorus to water	metric tons	51	63

a Apprentices in catering are excluded from these disclosures.
b In line with the European Sustainability Reporting Standards (ESRS), information on employees, nonemployees and contractors is shown as a total compared to the previous year's report.
c Per 1,000,000 working hours
d There may be deviations in this metric from the prior-year figure due to data collection.
e Recordable work-related injuries for BASF include all injuries recorded in the system in accordance with ESRS.

BASF Report 2025

Disclosures on BASF SE in Accordance with the German Commercial Code (HGB)

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

[1.5 Corporate Governance]¹

Corporate Governance Report

Corporate governance refers to the entire system for managing and supervising a company. This includes its organization, values, corporate principles and guidelines as well as internal and external control and monitoring mechanisms. Effective and transparent corporate governance ensures that BASF is managed and supervised responsibly with a focus on value creation and sustainability.

The fundamental elements of BASF SE's corporate governance system are: its two-tier management system, with a transparent and clear separation of company management and supervision between BASF's Board of Executive Directors and the Supervisory Board; the equal representation of shareholders and employees on the Supervisory Board; and the shareholders' rights of coadministration and supervision at the Annual Shareholders' Meeting.

Commitment to the German Corporate Governance Code (GCGC)

BASF advocates responsible corporate governance that focuses on sustainably increasing the value of the company. BASF SE follows all of the recommendations of the GCGC in the version dated April 28, 2022 (Code 2022), the version in force at the time of submitting the Declaration of Conformity on December 18, 2025. In the same manner, BASF follows all of the nonobligatory suggestions of the GCGC.

The joint Declaration of Conformity 2025 by the Board of Executive Directors and Supervisory Board of BASF SE is rendered on page 143.

> For more information on the Declaration of Conformity 2025, the implementation of the Code's suggestions and the GCGC, see basf.com/en/corporate governance

Functioning of the Board of Executive Directors and the Supervisory Board

ESRS 2 GOV-1 ESRS 2 GOV-2

BASF SE's two-tier management system

Board of Executive Directors

6 members

appointed by the Supervisory Board

Chairman

appointed by the Supervisory Board

appoints the Board of Executive Directors
monitors the Board of Executive Directors
advises the Board of Executive Directors
reports to the Supervisory Board

Supervisory Board

12 members

6 shareholder representatives elected by the Annual Shareholders' Meeting and 6 employee representatives

Chairman

elected by the Supervisory Board

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Combined Management's Report
Consolidated Financial Statements
Further Information

Direction and management by the Board of Executive Directors

The Board of Executive Directors is responsible for managing the company and represents BASF SE in business undertakings with third parties. It is strictly separated from the Supervisory Board: A member of the Board of Executive Directors cannot simultaneously be a member of the Supervisory Board, as the Supervisory Board monitors the Board of Executive Directors' activities and decides on its composition. As the central duty of company management, the Board of Executive Directors defines the corporate goals and strategic direction of the BASF Group as well as its individual business areas, including the sustainability strategy. In doing so, the Board ensures that the opportunities and risks associated with social and environmental factors for our company (outside-in perspective) as well as the ecological and societal impacts of BASF's corporate activities (inside-out perspective) are systematically identified and evaluated. (In addition to long-term economic goals, the corporate strategy appropriately takes environmental and social objectives into account, too. The corporate planning defined on this basis comprises financial and sustainability-related goals.)

Furthermore, the Board of Executive Directors determines the company's internal organization and decides on the composition of management positions on the levels below the Board. It also manages and monitors BASF Group business by planning and setting the corporate budget, allocating resources and management capacities, monitoring and making decisions on significant individual measures, and supervising operational management.

The Board's actions and decisions are geared toward the company's best interests. It is committed to the goal of sustainably increasing the company's value and developing the company over the long term, taking into account environmental and social goals as well as economic targets. The Board's responsibilities include the preparation of the Consolidated and Individual Financial Statements of BASF SE and reporting on the company's financial and nonfinancial performance as well as half-year and quarterly reporting. It must also ensure that the company's activities comply with the applicable legislation and regulatory requirements as well as internal corporate requirements (compliance). This includes the establishment and monitoring of appropriate systems for control, compliance and risk management as well as embedding a company-wide compliance culture with undisputed standards (see page 288).

Decisions that are reserved for the Board as a whole by law, through the Board of Executive Directors' Rules of Procedure or through resolutions adopted by the Board, are made and all important matters of the company are discussed at regularly held Board meetings called by the Chairman of the Board of Executive Directors. Board decisions are based on detailed information and analyses provided by the operating divisions and Corporate Center units as well as by the service and research units and, if deemed necessary, by external consultants. The Chairman of the Board of Executive Directors leads the Board meetings. Board decisions can generally be made via a simple majority. In the case of a tied vote, the Chairman of the Board of Executive Directors gives the casting vote. However, the Chairman of the Board of Executive Directors cannot enforce a decision against the Board of Executive Directors' majority vote. The Chairman of the Board also does not have the right to veto. Outside of matters that are assigned to the entire Board for consultation and decision-making, all members of the Board of Executive Directors are authorized to make decisions individually in their designated areas of responsibility.

The Board of Executive Directors can set up Board committees to consult and decide on individual issues such as proposed material acquisition or divestiture projects or to prepare decisions to be made by the entire Board. These committees must include at least three members of the Board of Executive Directors. For the preparation of important decisions, such as those on acquisitions, divestitures, investments and personnel, the Board has various commissions at the level below the Board. With the support of the Corporate Center units and the service and research units and independently of the affected operating division, these committees thoroughly assess the planned measures and evaluate the

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Consolidated Financial Statements

Further Information

associated opportunities and risks. Based on this information, they report and make recommendations to the Board.

The Board of Executive Directors informs the Supervisory Board regularly, without delay and comprehensively, of all issues important to the company with regard to planning, business development, the risk situation, control and risk management and compliance. Furthermore, the Board of Executive Directors coordinates the company's strategic orientation with the Supervisory Board (for more information on risk management, see the forecast report from page 90 onward). The Statutes of BASF SE and the Supervisory Board have defined certain transactions that require the Board of Executive Directors to obtain the Supervisory Board's approval prior to their conclusion. Such cases that require approval include the acquisition of enterprises and disposal of parts of enterprises, as well as the issue of bonds or comparable financial instruments if the acquisition or disposal price or the amount of the issue in an individual case exceeds 3% of the equity reported in the most recent approved Consolidated Financial Statements of the BASF Group.

The members of the Board of Executive Directors, including their areas of responsibility and memberships in the supervisory bodies of other companies, are listed from page 140 onward.

» Additional information on the compensation of the Board of Executive Directors will be published in the Compensation Report at basf.com/compensationreport.
» The Rules of Procedure for the Board of Executive Directors can be found at basf.com/rules-of-procedure.

Competence profile, diversity concept and succession planning for the Board of Executive Directors

The Supervisory Board works hand in hand with the Board of Executive Directors to ensure long-term succession planning for the composition of the Board of Executive Directors. BASF aims to fill most Board positions with leaders from within the company. It is the task of the Board of Executive Directors to propose a sufficient number of suitable individuals to the Supervisory Board.

Long-term succession planning is guided by the corporate strategy. It is based on systematic management development characterized by the following:

Early identification of suitable leaders of different professional backgrounds, nationalities and genders
Systematic development of leaders through the successful assumption of tasks with increasing responsibility, where possible in different business areas, regions and functions
Desire to shape strategic and operational decisions and proven success in doing so, as well as leadership skills, especially under challenging business conditions
Role model function in putting corporate values into practice

The aim of systematic management development is to enable the Supervisory Board to ensure a reasonable level of diversity with respect to education and professional experience, cultural background, international representation, gender and age when appointing members of the Board of Executive Directors. Irrespective of these individual criteria, a holistic approach will determine a person's suitability for appointment to the Board of Executive Directors of BASF SE. Both systematic succession planning and the selection process aim to ensure that the Board of Executive Directors as a whole has the following profile, which serves as a diversity concept:

Many years of leadership experience in scientific, technical and commercial fields
International experience based on background and/or professional experience
At least one female Board member
A balanced age distribution to ensure the continuity of the Board's work and enable seamless succession planning

BASF Report 2025

Corporate Governance

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The first appointment of members of the Board of Executive Directors is for a term of no more than three years. The standard age limit for members of the Board of Executive Directors is 63. The Supervisory Board determines the number of members on the Board of Executive Directors. It is guided by the requirements of the corporate structure of the BASF Group and by the needs arising from cooperation within the Board of Executive Directors. The Supervisory Board considers an expansion of the Board of Executive Directors from six to seven members in the coming business year to be appropriate given the current and future business composition, future development tasks and adjustment of the fundamental organizational structure of the BASF Group.

Implementation of the competence profile and the diversity concept for the Board of Executive Directors

The Board of Executive Directors meets the competence profile and the requirements of the diversity concept in full. Details of the Board of Executive Directors' experience as it relates to BASF's segments, products, customer industries and geographic locations can be found in the following competence matrix.²

Competence profile of the Board of Executive Directors

International experience		Experience in relevant fields of competence
Europe, Middle East, Africa	✓	Research & Development	✓
North/South/Central America	✓	Technology	✓
China	✓	Corporate functions	✓
Asia Pacific	✓	Sustainability	✓

Experience in BASF's segments		Experience in BASF's key customer industries
Chemicals	✓	Chemicals and plastics	✓
Materials	✓	Transportation and automotive	✓
Industrial Solutions	✓	Construction industry	✓
Nutrition & Care	✓	Electronics	✓
Surface Technologies	✓	Agriculture	✓
Agricultural Solutions	✓	Consumer goods	✓
		Energy and raw materials	✓
		Health and nutrition	✓

> For detailed information on the professional background of the members of the Board of Executive Directors, see basf.com/board

The members of the Board of Executive Directors have broad and long-standing experience in all BASF segments and in core functions such as finance, governance, risk management, digitalization and site management. In addition, they have an in-depth understanding of sustainability, climate protection, energy and resource efficiency, occupational safety and regulatory requirements along international value chains. This profound and international expertise forms the basis for the implementation of the corporate and sustainability strategy, as well as for making transformation and investment decisions.

The Board of Executive Directors as a whole also has extensive knowledge of the key customer industries, as well as strong international management experience in Europe, North and South America, China and Asia Pacific. This global perspective supports responsible and forward-looking management of the economic, environmental and social impacts of business activities.

² The presentation has been adjusted compared to the previous year to further optimize clarity and ensure a consistent classification within the industry environment.

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Combined Management's Report

Consolidated Financial Statements

Further Information

Proportions represented in the Board of Executive Directors according to the aspects of diversity taken into account

	Dec. 31, 2025	Dec. 31, 2024
Proportion of women	16.7%	16.7%
Proportion of members with international experience based on their background or professional experience	83.3%	83.3%
Proportion of members with many years of leadership experience
– in scientific fields	33.3%	33.3%
– in technical fields	66.7%	66.7%
– in commercial fields	100%	100%
Proportion of members under 60 years of age	83.3%	83.3%

On account of the different educational backgrounds and management experience of its members, the Board of Executive Directors as a whole covers the required spectrum of specialist and management expertise as well as international experience. In accordance with section 16(2) of the SE Implementation Act, one woman sits on the Board of Executive Directors, with suitable consideration of women forming an integral component of succession planning for the Board of Executive Directors. In its current composition, the Board of Executive Directors exhibits a balanced age structure and has an age range of seven years, meaning that sufficient continuity is assured in the work of the Board of Executive Directors. No member of the Board of Executive Directors exceeds the standard age limit of 63 years.

Details of the sustainability competence of the Board of Executive Directors and the Supervisory Board, taking into account the sustainability topics that are material for BASF, which were identified following the double materiality assessment, can be found under Competence of the Board of Executive Directors and Supervisory Board in monitoring sustainability aspects (see page 131).

More information on the members of the Board of Executive Directors can be found in the Management and Supervisory Boards section (see page 140).

Supervision of company management by the Supervisory Board

The Supervisory Board appoints the members of the Board of Executive Directors. It supervises and advises the Board of Executive Directors on management issues and is also involved in making decisions that are of key importance for the company. This also includes the Board of Executive Directors' consideration of sustainability issues with regard to corporate management. The Supervisory Board is also responsible for auditing BASF SE's and the BASF Group's Annual Financial Statements.

As members of the Supervisory Board may not simultaneously be on the Board of Executive Directors, a high level of independence is already structurally ensured with regard to the supervision of the Board of Executive Directors. In addition to the SE Regulation and the SE Implementation Act, the relevant legal basis for the size and composition of the Supervisory Board is provided by the Statutes of BASF SE and the Agreement Concerning the Involvement of Employees in BASF SE (Employee Participation Agreement). The latter also includes the regulations applicable to BASF for implementing the statutory gender quota for the Supervisory Board. The German Co-determination Act does not apply to BASF SE as a European stock corporation (Societas Europaea, SE).

The Supervisory Board of BASF SE has twelve members and is composed on the basis of equal representation: Half of the members are elected by the shareholders at the Annual Shareholders' Meeting via a simple majority and the other half are elected by the BASF Europa Betriebsrat (BASF Works Council Europe), the European employee representation body of the BASF Group. Members of the Supervisory Board are appointed for a term of four years. This ensures that the maximum membership duration of 12 years up to which a Supervisory Board member can be classified as independent in accordance with the GCGC corresponds to a total of three election terms.

BASF Report 2025

Corporate Governance

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Meetings of the Supervisory Board and its four committees are regularly convened by their respective chairs. Independently, meetings may also be convened at the request of a member of the Supervisory Board, committee or Board of Executive Directors. The shareholder and employee representatives of the Supervisory Board prepare for Supervisory Board meetings in separate preliminary discussions. Resolutions of the Supervisory Board are passed by a simple majority vote of the participating Supervisory Board members. In the event of a tie, the vote of the Chairman of the Supervisory Board, who must always be a shareholder representative, gives the casting vote. This resolution process is also applicable for the appointment and dismissal of members of the Board of Executive Directors by the Supervisory Board. Resolutions can, as needed, also be made in writing or through electronic communication outside of the meetings. The Supervisory Board meets regularly even without the Board of Executive Directors.

The Board of Executive Directors continually informs the Supervisory Board about matters such as the course of business and expected developments, the results of operations, net assets and financial position, material acquisition and divestiture projects, corporate planning, the implementation of the corporate strategy, including the sustainability strategy, business opportunities and risks as well as risk and compliance management and the internal control system. The Supervisory Board has embedded the main reporting requirements in an information policy. The Chairman of the Supervisory Board is in regular contact with the Board of Executive Directors, especially with its Chairman, outside of meetings as well.

A list of the members of BASF SE's Supervisory Board indicating which members are shareholder or employee representatives and their appointments to the supervisory bodies of other companies can be found from page 141 onward.

The Rules of Procedure for the Supervisory Board can be found at basf.com/rules-of-procedure.
For more information on the compensation of the Supervisory Board, see basf.com/compensationreport
The Statutes of BASF SE and the Employee Participation Agreement can be found at basf.com/statutes and basf.com/en/corporategovernance.

Personnel Committee

Members

Prof. Dr. Stefan Asenkerschbaumer$^{3,4}$ (Chairman), Dr. Kurt Bock$^{3,4}$, Prof. Dr. Thomas Carell$^{3,4}$, Tatjana Diether$^{3,5}$, Sinischa Horvat$^{3,5}$, Michael Vassiliadis$^{5}$

Duties

Prepares the appointment of members to the Board of Executive Directors by the Supervisory Board on the basis of the competence profile and diversity concept for the Board of Executive Directors adopted by the Supervisory Board
Prepares the resolutions made by the Supervisory Board with regard to the system and amount of compensation to members of the Board of Executive Directors as well as the annual target agreement and performance assessment for the Board of Executive Directors
Prepares recommendations to the Supervisory Board on the terms and conditions of service contracts for the Board of Executive Directors and negotiates and decides on them within the framework adopted by the Supervisory Board

Audit Committee

Members

Alessandra Genco$^{3,4}$ (Chairwoman), Tatjana Diether$^{3,5}$, Michael Vassiliadis$^{5}$, Tamara Weinert$^{3,4}$

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Consolidated Financial Statements
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Duties and authority

Prepares the negotiations and resolutions of the Supervisory Board for the approval of the Financial Statements, the Consolidated Financial Statements and the Management’s Reports, including the Nonfinancial Statements and sustainability reporting and discusses the Quarterly Statements and the Half-Year Financial Report with the Chief Financial Officer prior to their publication
Deals with monitoring the accounting process, the annual audit, including sustainability reporting and its audit, the appropriateness and effectiveness of the internal control system, the risk management system, the internal auditing system and compliance management system as well as compliance issues, including compliance with statutory regulations and internal environmental, health and safety regulations (EHS compliance)
Is responsible for business relations with the company’s auditor and the auditor of the sustainability report: prepares the Supervisory Board’s proposal to the Annual Shareholders’ Meeting regarding the selection of an auditor for the Annual and Consolidated Financial Statements and the audit review of the Half-Year Financial Report and the selection of an auditor for the sustainability report, monitors the auditor’s independence, defines the focus areas of the audit together with the auditor, discusses the audit risk, audit strategy and audit plan with the auditor, negotiates auditing fees, evaluates the quality of the annual audit, and establishes the conditions for the provision of the auditor’s nonaudit services; the Chairwoman of the Audit Committee regularly discusses this with the auditor outside of meetings as well and reports to the Committee on such discussions; the Audit Committee regularly consults with the auditor, even without the Chief Financial Officer or another member of the Board of Executive Directors
Deals with post-audits of key acquisition and investment projects
Is responsible for monitoring the internal process of identifying related party transactions and ensuring adherence to statutory approval and disclosure requirements; grants approval of related party transactions
Is authorized to request any information that it deems necessary from the auditor or from the Board of Executive Directors and has a direct right to information from the heads of the units of the Corporate Center such as Corporate Audit or Corporate Compliance; can also view all of BASF’s business documents and examine these and all other assets belonging to BASF. The Audit Committee can also engage experts such as auditors or lawyers to carry out these inspections.

Expertise in the areas of the annual audit and accounting

The Audit Committee includes two members with expertise (special knowledge and experience within the meaning of the GCGC) in the fields of accounting and auditing. The Chairwoman of the Audit Committee, Alessandra Genco, has expertise in accounting, including sustainability reporting, due to her studies in economics, her professional experience working for financial institutions and her previous role as chief financial officer at Leonardo, a publicly listed international company based in the EU. Tamara Weinert has expertise in the field of auditing, including the audit of sustainability reporting, and accounting expertise due to her former role as the Chief Financial Officer for the EMEA region at Outokumpu and her professional activities in the finance departments of various companies around the world. Both closely monitor current developments in sustainability reporting, particularly the European regulations of the Corporate Sustainability Reporting Directive (CSRD), and its auditing and actively contribute this expertise to the Supervisory Board and Audit Committee.

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Combined Management's Report
Consolidated Financial Statements
Further Information

Nomination Committee

Members

Dr. Kurt Bock$^{6,7}$ (Chairman), Prof. Dr. Stefan Asenkerschbaumer$^{6,7}$, Prof. Dr. Thomas Carell$^{6,7}$, Liming Chen$^{6,7}$, Alessandra Genco$^{6,7}$, Tamara Weinert$^{6,7}$

Duties

Identifies suitable individuals for the Supervisory Board based on the objectives for the composition decided on by the Supervisory Board
Prepares the recommendations made by the Supervisory Board for the election of shareholder representatives to the Supervisory Board by the Annual Shareholders’ Meeting

Strategy Committee

Members

Dr. Kurt Bock (Chairman)$^{6,7}$, Prof. Dr. Stefan Asenkerschbaumer$^{6,7}$, Alessandra Genco$^{6,7}$, Sinischa Horvat$^{6,8}$, André Matta$^{6,8}$, Michael Vassiliadis$^{8}$

Duties

Handles the further development of the company's strategy
Prepares resolutions of the Supervisory Board on the company's major acquisitions, divestitures and portfolio measures

The Supervisory Board has not established a dedicated Sustainability Committee. In addition to governance, sustainability is a topic of such pivotal importance to BASF with its economic success, environment and social-related aspects that the entire Supervisory Board regularly discusses it in detail as a cross-cutting issue.

Meetings and meeting attendance

In the 2025 business year, meetings were held as follows:

The Supervisory Board met six times (one of which was a completely virtual meeting).
The Personnel Committee met four times.
The Audit Committee met six times (two of which were completely virtual meetings).
The Nomination Committee did not meet.
The Strategy Committee met once (as a completely virtual meeting).

All members attended all meetings of the Supervisory Board, although one member was only able to attend the two-day strategy meeting in July on the second day and then only virtually due to illness. The meetings of the Supervisory Board committees were attended by all respective committee members. During the 2025 business year, the meetings of the Supervisory Board and its committees were mainly held as general in-person meetings with the additional option of virtual attendance.

For more information on the activities of the Supervisory Board and its committees in the 2025 business year, see the Report of the Supervisory Board from page 437 onward.

For an overview of meeting attendance, see basf.com/supervisoryboard/meetings
The Rules of Procedure for the Supervisory Board and its committees can be found at basf.com/rules-of-procedure.

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Consolidated Financial Statements
Further Information

Competence profile, diversity concept, independence and further objectives for the composition of the Supervisory Board

One important concern of good corporate governance is to ensure that seats on the responsible corporate bodies, the Board of Executive Directors and the Supervisory Board are appropriately filled. In implementing the legal requirements and taking into account the recommendations of the GCGC, the Supervisory Board has therefore agreed on objectives for its composition, including a competence profile and diversity concept, and most recently updated these in December 2022. The guiding principle for the composition of the Supervisory Board is to ensure qualified supervision and guidance for the Board of Executive Directors of BASF SE. For the election of shareholder representatives to the Supervisory Board, individuals will only be nominated to the Annual Shareholders' Meeting who can, based on their professional knowledge and experience, integrity, commitment, independence and character, successfully perform the work of a supervisory board member at an international chemical company.

Competence profile

The following requirements and objectives are considered essential to the composition of the Supervisory Board as a collective body:

Leadership experience in managing companies, associations and networks
Members' collective knowledge of the chemical sector and the related value chains
Appropriate knowledge within the body as a whole of finance, accounting, financial reporting, risk management, law and compliance
Appropriate expertise within the body as a whole on sustainability issues relevant to BASF
At least one member with special knowledge and experience (special expertise) in the field of accounting, including sustainability reporting
At least one member with special knowledge and experience (special expertise) in the field of financial auditing, including the audit of sustainability reporting
At least one member with in-depth experience in innovation, research and development, and technology
At least one member with in-depth experience in the areas of digitalization, information technology, business models and startups
At least one member with in-depth experience in the areas of human resources, society, communications and the media
Specialist knowledge and experience in sectors outside of the chemical industry

Diversity concept

The Supervisory Board strives to achieve a reasonable level of diversity with respect to character, gender, international representation, professional background, specialist knowledge and experience as well as age distribution. It takes the following composition criteria into account:

At least 30% of members are women and 30% of members are men.
At least 30% of members with international experience based on their background or professional experience
At least 50% of members with different educational backgrounds and professional experience
At least 30% of members are under the age of 60.

Independence

To ensure the independent monitoring and consultation of the Board of Executive Directors, the Supervisory Board should have an appropriate number of independent members on the Board as a whole and an appropriate number of independent shareholder representatives. The Supervisory Board deems this to be the case if more than half of the shareholder representatives and at least eight members

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of the Supervisory Board as a whole can be considered independent. In assessing independence, the Supervisory Board follows the assessment criteria of the current GCGC in conjunction with the provisions of Delegated Regulation (EU) 2023/2772.

According to these criteria, indicators of a lack of independence of a Supervisory Board member are:

Membership of the Board of Executive Directors of the company in the two years prior to being appointed to the Supervisory Board
Significant business relations with the company or an entity dependent on the company (such as a customer, supplier, lender or adviser), either currently or in the year prior to their appointment, either directly or as a shareholder of, or in a responsible position at, a third-party company
Close family relations with a member of the Board of Executive Directors
Membership of the Supervisory Board for more than 12 years.

The Supervisory Board has additionally defined the following principles to clarify the meaning of independence:

The independence of employee representatives is not compromised by their role as an employee representative or employment by BASF SE or a Group company.
Prior membership of the Board of Executive Directors of BASF SE does not preclude independence following the expiry of the statutory cooling-off period of two years.
Material transactions between a Supervisory Board member or a related party or undertaking of the Supervisory Board member on the one hand, and BASF SE or a BASF Group company on the other, exclude a member of the Supervisory Board from being qualified as independent. A material transaction is defined as one or more transactions in a single calendar year with a total volume of 1% or more of the sales of the companies involved in each case.
If a Supervisory Board member or a related party or undertaking of a Supervisory Board member has a personal service or consulting agreement with BASF SE or one of its Group companies with an annual compensation of over 50% of the Supervisory Board compensation, they do not qualify as independent.
Furthermore, if a Supervisory Board member or a related party of a Supervisory Board member holds more than 20% of the shares in a company in which BASF SE is indirectly or directly the majority shareholder, the necessary independence is also not met.

The assessment criteria for independence of the GCGC and the Supervisory Board's own principles to clarify the meaning of independence are worded with greater differentiation than the provisions of Delegated Regulation (EU) 2023/2772. Consequently, according to both standards, the majority of Supervisory Board members do not have any interests, positions, associations or relations that, from the perspective of a reasonable and informed third party, are conducive to exerting undue influence on decision-making or to causing bias.

Further objectives for the composition of the Supervisory Board

Character and integrity: Members of the Supervisory Board must be personally reliable and have the knowledge and experience required to diligently and independently perform the work of a Supervisory Board member.
Availability: Each member of the Supervisory Board ensures that they invest the time needed to properly perform their role as a member of the Supervisory Board of BASF SE. The statutory limits on appointments and the recommendations of the GCGC must be complied with when accepting further appointments.
No conflicts of interest: Persons who may be subject to a conflict of interest may not be nominated for election to the Supervisory Board. A conflict of interest is deemed to be any personal interest, or

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third-party interest relevant to the nominated person, that, on account of its duration or intensity, gives cause for concern that the business interests of BASF will be impaired or jeopardized.

Age limit and period of membership: Persons who have reached the age of 72 on the day of election by the Annual Shareholders' Meeting should generally not be nominated for election. Membership on the Supervisory Board should generally not exceed three regular statutory periods in office, which corresponds to 12 years.

Implementation of the competence profile, diversity concept, independence requirements and further objectives for the composition of the Supervisory Board

According to the Supervisory Board's own assessment, its current composition meets all of the requirements of the competence profile: Every single area of competence is covered by several members of the Supervisory Board. In particular, the in-depth knowledge and experience of the chemical sector and the related value chains, which are crucial for understanding the business activities of BASF, are broadly represented. It also has the essential knowledge of accounting, financial reporting and auditing, including sustainability reporting and its auditing, required for monitoring the management of the company.

According to the Supervisory Board's own assessment, its current composition also meets all of the independence requirements in full: Eleven of the 12 current members, of which six are shareholder representatives and five are employee representatives, are considered independent based on the above criteria. Only the employee representative Michael Vassiliadis is no longer considered independent as he has been a member of the Supervisory Board since August 2004, and therefore for over 12 years.

The Supervisory Board also meets the required composition criteria under the diversity concept in full:

Proportions represented in the Supervisory Board according to the aspects of diversity and independence taken into account

	Dec. 31, 2025	Dec. 31, 2024
Proportion of women	33.3%	33.3%
Proportion of members with international experience based on their background or professional experience	50%	50%
Proportion of members with different educational backgrounds and professional experience	66.7%	66.7%
Proportion of members under 60 years of age	58.3%	66.7%
Proportion of independent members in accordance with GCGC	91.7%	91.7%
Proportion of independent members in accordance with Delegated Regulation (EU) 2023/2772	100%	100%

For more information on the statutory minimum quotas for the number of women and men on the Supervisory Board, see the section Commitments to Promote the Participation of Women in Leadership Positions at BASF SE on page 133.

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The following qualification matrices disclose the implementation of the competence profile, diversity concept, independence requirements and further objectives for the composition of the Supervisory Board for each member of the Supervisory Board:

Qualifications matrix of the shareholder representatives in the Supervisory Board

	Dr. Kurt Bock	Prof. Dr. Stefan Asenkersch-baumer	Prof. Dr. Thomas Carell	Liming Chen	Alessandra Genco^{a}	Tamara Weinert^{b}
Membership of the Supervisory Board of BASF SE
Member since	June 18, 2020	April 29, 2022	May 3, 2019	October 8, 2020	April 29, 2022	April 25, 2024
Personal suitability and availability
Independence in accordance with GCGC	✓	✓	✓	✓	✓	✓
Independence in accordance with Delegated Regulation (EU) 2023/2772	✓	✓	✓	✓	✓	✓
No overboarding	✓	✓	✓	✓	✓	✓
Participation rate in Supervisory Board meetings and its committees (2025)	100%	100%	100%	100%	100%	100%
Diversity
Year born	1958	1956	1966	1960	1973	1965
Gender	Male	Male	Male	Male	Female	Female
Vocational training	Business administration	Business education; business administration	Organic chemistry	Food science	Economics	Banking; finance; protected landscape management
Nationality	German	German	German	Singaporean	Italian	German
International experience
Europe, Middle East, Africa	✓	✓	✓	✓	✓	✓
North/South/Central America	✓		✓	✓	✓	✓
China				✓
Asia Pacific				✓		✓
Professional knowledge and experience/competence profile^{c}
Leadership of companies, associations and networks	✓	✓	✓	✓	✓	✓
Chemical sector and related value chains	✓	✓	✓	✓
Finance, accounting, financial reporting, risk management, law and compliance	✓	✓		✓	✓	✓
Sustainability^{d}	✓	✓	✓	✓	✓	✓

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Qualifications matrix of the shareholder representatives in the Supervisory Board

	Dr. Kurt Bock	Prof. Dr. Stefan Asenkersch-baumer	Prof. Dr. Thomas Carell	Liming Chen	Alessandra Genco^{a}	Tamara Weinert^{b}
Professional knowledge and experience/competence profile^{c}
Accounting and auditing, including sustainability reporting	✓	✓			✓	✓
Innovation, research and development and technology			✓	✓	✓
Digitalization, IT, business models and startups	✓	✓	✓	✓	✓	✓
Human resources, society, communications and the media	✓	✓	✓	✓	✓	✓
Economic sectors other than the chemical industry	✓	✓	✓	✓	✓	✓

a Member with special knowledge of and experience in accounting, including sustainability reporting
b Member with special knowledge of and experience in auditing, including auditing of sustainability reporting
Based on a self-assessment by the Supervisory Board and taking into account the individual assessment of each of its members. A check mark signifies at least good knowledge in this area and thus the ability to understand relevant issues well and make informed decisions, either on the basis of existing qualifications or on the basis of knowledge acquired through the Supervisory Board activity and in further training measures.
In particular, taking into account the sustainability topics that are material for BASF, which were identified following the double materiality assessment. Details can be found in the section "Competence of the Board of Executive Directors and Supervisory Board in monitoring sustainability aspects" from page 131 onward.

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Qualifications matrix of the employee representatives in the Supervisory Board

	Sinischa Horvat	Tatjana Diether	André Matta	Natalie Mühlenfeld	Michael Vassiliadis	Peter Zaman
Membership of the Supervisory Board of BASF SE
Member since	May 12, 2017	May 4, 2018	April 29, 2022	April 29, 2022	August 1, 2004	April 29, 2022
Personal suitability and availability
Independence in accordance with GCGC	✓	✓	✓	✓		✓
Independence in accordance with Delegated Regulation (EU) 2023/2772	✓	✓	✓	✓	✓	✓
No overboarding	✓	✓	✓	✓	✓	✓
Participation rate in Supervisory Board meetings and its committees (2025)	100%	100%	93%	100%	100%	100%
Diversity
Year born	1976	1975	1970	1980	1964	1968
Gender	Male	Female	Male	Female	Male	Male
Vocational training	Process control electronics; business administration	Technical drawing: commercial training	Machinist; chemical technician	Law	Chemical laboratory technician	Automotive mechanic; plant operator
Nationality	German	German	German	German	German	Belgian
International experience
Europe, Middle East, Africa	✓	✓	✓	✓	✓	✓
North/South/Central America
China
Asia Pacific
Professional knowledge and experience/competence profilea
Leadership of companies, associations and networks	✓	✓	✓	✓	✓
Chemical sector and related value chains	✓	✓	✓	✓	✓	✓
Finance, accounting, financial reporting, risk management, law and compliance		✓		✓	✓
Sustainabilityb	✓	✓	✓	✓	✓	✓
Accounting and auditing, including sustainability reporting		✓			✓
Innovation, research and development and technology	✓	✓

a This document is not intended to be a part of the document's content.

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Qualifications matrix of the employee representatives in the Supervisory Board

	Sinischa Horvat	Tatjana Diether	André Matta	Natalie Mühlenfeld	Michael Vassiliadis	Peter Zaman
Professional knowledge and experience/competence profilea
Digitalization, IT, business models and startups	✓		✓		✓
Human resources, society, communications and the media	✓	✓	✓	✓	✓	✓
Economic sectors others than the chemical industry				✓	✓	✓

a Based on a self-assessment by the Supervisory Board and taking into account the individual assessment of each of its members. A check mark signifies at least good knowledge in this area and thus the ability to understand relevant issues well and make informed decisions, either on the basis of existing qualifications or on the basis of knowledge acquired through the Supervisory Board activity and in further training measures.
b In particular, taking into account the sustainability topics that are material for BASF, which were identified following the double materiality assessment. Details can be found in the section "Competence of the Board of Executive Directors and Supervisory Board in monitoring sustainability aspects" from page 131 onward.

Further information on the members of the Supervisory Board can be found in the Management and Supervisory Boards section (from page 141 onward).

The Board of Executive Directors' and the Supervisory Board's Handling of Sustainability Topics

ESRS 2 GOV-1 ESRS 2 GOV-2

Organization and responsibilities for monitoring sustainability-related impacts, risks and opportunities

Sustainability is systematically incorporated within the strategy, operations and assessment, steering and compensation systems of BASF.

Risk management and the internal control system are the responsibility of the entire Board of Executive Directors, which defines the basic requirements and processes as well as the organization of the risk management system. The Board of Executive Directors also defines the processes for approving investments, acquisitions and divestitures. It is supported by the units of the Corporate Center. Global opportunity and risk management falls under the responsibility of the Corporate Finance unit, which reports to the Chief Financial Officer, and systematically records sustainability-related opportunities and risks. Sustainability-related impacts on the business are analyzed by the Corporate Sustainability unit, which is part of Corporate Development. Corporate Development reports to the Chairman of the Board of Executive Directors. Decisions regarding investments, acquisitions and divestitures take into account comprehensive assessments of sustainability impacts. The Risk Committee, which comprises representatives from various Corporate Center units, reviews the Group-wide risk profile and any necessary adjustments to measures at least twice a year and informs the Board of Executive Directors accordingly. The Corporate Audit unit regularly audits the effectiveness and appropriateness of the risk management system, internal control system and the compliance management system and reports to the Board of Executive Directors and the Supervisory Board on these matters.

The supervisory and advisory activities of the entire Supervisory Board also include the Board of Executive Directors' consideration of sustainability topics with regard to corporate management and strategy development. Supervision of the risk management system and the internal control system, the internal auditing system, the appropriateness and effectiveness of the compliance management system, and compliance with statutory provisions and internal health, safety and environmental regulations falls within the responsibility of the Audit Committee. The Audit Committee also deals with follow-up assessments of key acquisition and investment projects. The Audit Committee also monitors

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sustainability reporting and its auditing as part of its supervision of accounting and auditing. For additional information on organization and responsibilities in connection with the management of opportunities and risks, see page 90 onward.

As part of the development of the corporate strategy communicated in September 2024, the Board of Executive Directors identified the transformation of the BASF Group toward a more sustainable portfolio as a strategic lever to enable the green transformation of BASF's customers as their preferred chemical company. The Strategy Committee of the Supervisory Board was closely involved in developing this strategy and in the decision-making process. In 2025, the Supervisory Board as a whole was regularly informed of the status of implementation.

Sustainability topics are discussed regularly and managed collectively by the Board of Executive Directors. When making its decisions, the Board of Executive Directors continuously considers the results and recommendations from sustainability evaluations of business processes. It makes decisions with strategic relevance for the Group and monitors the implementation of strategic plans and their target achievement. The Supervisory Board is regularly briefed by the Board of Executive Directors on the development of individual sustainability topics, on sustainability targets and the status of target achievement.

If potential negative impacts are identified, for example, in planned investments, these are presented transparently in the internal decision-making process together with possible mitigation measures. In the business year under review, the Board of Executive Directors therefore again took appropriate and careful account of compromises developed in connection with the impacts, risks and opportunities of significant transactions and the risk management process, and discussed these compromises with the Supervisory Board.

Pursuant to the Statutes of the company and the Rules of Procedure of the Supervisory Board, investment, acquisition and divestiture decisions of the Board of Executive Directors, the commencement of new business areas and the discontinuation of existing ones require the consent of the Supervisory Board insofar as they are of material significance for the Group as a whole. The Supervisory Board is thus always involved comprehensively and at an early stage in the aforementioned evaluation of sustainability criteria in connection with strategic decisions of the Board of Executive Directors.

In order to achieve the sustainability targets and implement the measures contributing to them, appropriate organizational structures have been put into place: Together with specialists from operating divisions and service units, the various Corporate Center units are responsible for integrating the sustainability targets into decision-making processes as well as for corresponding management and reporting. The Corporate Environmental Protection, Health, Safety & Quality unit, which reports to the Industrial Relations Director, and thus to a member of the Board of Executive Directors, develops Group-wide requirements and guidelines for collecting emissions and energy data, for energy management and for occupational safety and health. The unit conducts regular audits to monitor the implementation of and compliance with internal and legal requirements by the BASF sites and Group companies. In her role as Chief Compliance Officer (CCO), the head of the Legal and Compliance organization manages the development and implementation of the compliance management system and reports directly to the Chairman of the Board of Executive Directors. She is supported in this by compliance officers worldwide. The Corporate Sustainability unit is responsible for the global steering of the sustainability portfolio, CO_{2} management and the circular economy concept, as well as the development of appropriate levers for achieving targets. The Global Procurement unit, together with Corporate Sustainability, is responsible for purchasing processes and procurement requirements with regard to our raw materials-related targets. Global Procurement reports to the Chief Financial Officer. Once a year, the Board of Executive Directors reports in detail to the Supervisory Board on the sustainability targets and the status of target achievement. Group-wide CO_{2} emissions (Scope 1 and Scope 2) have also been anchored in the

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BASF Group’s steering and compensation systems as the most important nonfinancial key performance indicators since 2020 (see also page 133).

Information of the Board of Executive Directors and the Supervisory Board on sustainability aspects

The Board of Executive Directors and Supervisory Board are regularly briefed on sustainability aspects, including the process of the double materiality assessment and its findings. Corporate Finance provides the Board of Executive Directors twice a year with information on the aggregated opportunity/risk exposure of the BASF Group. New individual risks with an impact of €10 million or more on earnings, as well as risks with significant impacts on the sustainability targets and reputation of BASF must be reported directly to the responsible member of the Board of Executive Directors and the Chief Financial Officer. The Audit Committee is informed annually about short-term operational opportunities and risks as well as the risk management system and its further development, and reports on these matters to the entire Supervisory Board. The Corporate Development unit addresses strategic opportunities and risks annually to the Board of Executive Directors and Supervisory Board. Furthermore, the Board of Executive Directors reports to the Supervisory Board once a year on the achievement of the sustainability targets and the effectiveness of the strategies, measures and parameters decided upon.

The Corporate Audit unit is responsible for regularly auditing the effectiveness and appropriateness of the risk management system, the internal control system and the compliance management system. It reports to the Audit Committee on these matters each year. The Audit Committee addresses the effectiveness and appropriateness of these systems as part of its monitoring activities.

The Board of Executive Directors and the Supervisory Board are regularly informed about the implementation of due diligence: At the beginning of each business year, the CCO and the head of the Corporate Compliance unit report in detail to the Board of Executive Directors on compliance, including human rights issues, as well as on initiatives and the organizational development of Corporate Compliance. In addition, the head of the Corporate Compliance unit reports to the Audit Committee twice a year. The Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality reports to the Board of Executive Directors at the beginning of each business year on the Responsible Care audits conducted in the previous year, as well as on the audit planning for the current year. Once a year, the Chief Financial Officer reports to the Audit Committee on the Responsible Care audits conducted in the areas of environmental protection, health and safety in the previous business year, as well as on the audit planning for the current year.

The Board of Executive Directors and Supervisory Board dealt with the following material impacts, risks and opportunities of BASF during the reporting period:

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List of material impacts, risks and opportunities with which the management, control and supervisory bodies, or their responsible committees, dealt with during the reporting period

ESRS standard	Material impacts, risks, opportunities	Handled by the Board of Executive Directors	Handled by the Supervisory Board	Handled by the Audit Committee
Environment
Climate Change	Climate change mitigation	✓	✓
	Energy	✓	✓
Pollution Prevention	Water pollution	✓	✓
Resource Use and Circular Economy	Resource inflows including resource utilization	✓	✓
	Waste	✓
Social
Own Workforce	Secure employment	✓	✓
	Adequate wages	✓
	Health and safety	✓	✓	✓
Workers in the Value Chain	Health and safety	✓	✓	✓
	Child labor	✓	✓
	Forced labor	✓	✓
Affected Communities	Land-related impacts	✓	✓
	Other social and economic rights	✓	✓
Governance
Business Conduct	Corporate culture	✓	✓	✓
	Protection of whistleblowers	✓	✓	✓
	Corruption and bribery (for example, prevention and detection including training, incidents)	✓	✓	✓
Cross-thematic issues and other sustainability and risk management-related topics
	Nonfinancial short-term incentive (STI) targets and strategic long-term incentive (LTI) targets for 2025	✓	✓
	Sustainability targets and target achievement	✓	✓	✓
	Sustainability reporting 2024	✓	✓	✓
	Double materiality assessment 2025	✓
	Risk management	✓		✓
	Corporate Audit Activity Report 2024, Audit Planning 2025	✓		✓
	Appropriateness and effectiveness of the internal control system and risk management system	✓		✓

For more details on information processes, see Opportunities and Risks from page 90 onward.

Competence of the Board of Executive Directors and Supervisory Board in monitoring sustainability aspects

Sustainable and responsible behavior is firmly enshrined in BASF's corporate purpose, strategy, objectives and business operations. For instance, BASF's innovations, products and technologies help to use natural resources more efficiently, meet the demand for food, enable climate-friendly mobility, reduce emissions and waste, or increase the efficiency of renewable energy. At the same time, BASF causes $\mathrm{CO}_{2}$ emissions, uses water and sources raw materials from suppliers, which may involve a potential risk of violating environmental or labor standards. Sustainability thus represents a material topic

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that cuts across operating divisions and segments – and is dealt with by each member of the Board of Executive Directors within their respective area of divisional responsibility. Therefore, sustainability-related expertise, particularly in relation to sustainability topics that are of material importance to BASF, is broadly anchored within the Board of Executive Directors.

The Board of Executive Directors possesses in-depth knowledge on the material topics of climate protection and energy as well as resource use and circular economy: Dr. Markus Kamieth, Michael Heinz, Dr. Stephan Kothrade and Dr. Katja Scharpwinkel were directly involved in a project that focused on the provision of renewable energy, avoiding and managing $\mathrm{CO}_{2}$ and safeguarding access to renewable raw materials. On account of his former position as a member of the Executive Board of Wintershall Holding GmbH and his current role on the Board of Harbour Energy plc, Dr. Dirk Elvermann possesses in-depth expertise in the energy sector. As Chief Financial Officer, he also deals intensively with sustainability reporting in accordance with CSRD requirements and is familiar with sustainable finance. On account of his many years of experience as the Site Director of the Nanjing Verbund site, Dr. Stephan Kothrade is familiar with climate-related topics at Verbund sites, as well as with the material sustainability topics of air and water pollution. Based on his career in the Catalysts division, Anup Kothari holds expertise in air pollution in addition to battery recycling and the responsible sourcing of raw materials. Thanks to Dr. Markus Kamieth, Dr. Dirk Elvermann, Michael Heinz and Industrial Relations Director Dr. Katja Scharpwinkel, the Board of Executive Directors has broad knowledge of health and safety at its disposal, both in relation to the company's own workforce and the workers in the value chain, as well as the prevention of child and forced labor. By virtue of their many years of leadership experience within BASF, all members of the Board of Executive Directors are fully conversant with corporate governance, culture and policy, in particular in relation to the protection of whistleblowers and the prevention of corruption and bribery.

The Supervisory Board as a whole possesses a broad spectrum of sustainability-related expertise. Dr. Kurt Bock and Prof. Dr. Stefan Asenkerschbaumer have in-depth knowledge of corporate governance and corporate policy thanks to their decades of management experience. Thanks to his research activities in the field of organic chemistry, Prof. Dr. Thomas Carell is fully versed in the topic of substances of concern and substances of very high concern. Due to his former role in the chemical industry, Liming Chen possesses expertise in the areas of air and water pollution. On account of her previous position as chief financial officer of a publicly listed international company based in the EU, the Chairwoman of the Audit Committee, Alessandra Genco, is fully conversant with sustainability reporting and the CSRD requirements. She also boasts expertise in circular economy and recycling processes. In terms of the monitoring of sustainability aspects, Tamara Weinert contributes relevant expertise from her former management positions in the energy sector, which is important for BASF, and her operational and strategic management experience in the area of water withdrawals and consumption and in circular solutions. As part of their respective activities, all shareholder representatives on the Supervisory Board regularly deal with climate protection matters. Sinischa Horvat, Natalie Muhlenfeld and Michael Vassiliadis possess broad expertise in the field of health and safety, both in relation to the company's own workforce and workers in the value chain. As part of their trade union and works council activities, all employee representatives on the Supervisory Board have been dealing intensively with the topics of adequate wages and secure employment for many years. In-depth expertise on the topic of training and skills development is available among both the shareholder representatives and employee representatives. Where necessary, the members of the Supervisory Board also have the option of consulting external experts on specific topics.

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Compensation of the Board of Executive Directors and Supervisory Board

ESRS 2 GOV-3

Compensation of the Board of Executive Directors is based on the size, complexity and economic position of the company. The structure of this compensation is designed to contribute to sustainable business success and the achievement of strategic corporate targets. The amount of the variable compensation is derived both from the achievement of short- and long-term financial and sustainability-related targets and from the development of the share price and dividend per share (total shareholder return). Since the 2024 business year, the short-term incentive (STI) has accounted for 25% and the long-term incentive (LTI) for 41% of the total target compensation for a business year.

In addition to three financial targets, which account for a total of 75% of the STI, the STI for the 2025 business year also defines the following targets⁹, the first two of which relate to sustainability: employee engagement (Engagement Index), occupational and process safety and strategic projects. All three of these targets are equally weighted in the STI and together account for 25% of the total STI formula. This means that 16.7% of the entire STI formula is sustainability-related. The LTI includes the reduction of CO₂ emissions (Scope 1 and 2) of the BASF Group as one of three equally weighted (33.3%)¹⁰ strategic goals. These have been anchored as the most important nonfinancial key performance indicator in the BASF Group's steering and compensation systems since 2020. The sustainability-related performance of the BASF Group is thus included in the compensation of the Board of Executive Directors.

The compensation of the Supervisory Board does not include any variable components and is therefore not tied to the achievement of targets.

The structure and amount of compensation for the Board of Executive Directors are set by the Supervisory Board at the recommendation of the Personnel Committee. In the event of significant changes, but at least every four years, the compensation system determined by the Supervisory Board is submitted to the Annual Shareholders' Meeting for approval. Compensation for Supervisory Board members is governed by the Statutes of BASF SE, which are decided upon by the Annual Shareholders' Meeting (legally required by sections 87 and 87a AktG for the Board of Executive Directors and section 113 AktG for the Supervisory Board).

The Compensation Report in accordance with section 162 of the German Stock Corporation Act (AktG) together with the assurance statement of the substantive and formal audit issued by the auditor and the compensation system for the Board of Executive Directors will be publicly available on the BASF website.

> The Compensation Report will be published at basf.com/compensationreport.
> For more information on the compensation system for the Board of Executive Directors, see basf.com/compensation-system

Commitments to Promote the Participation of Women in Leadership Positions at BASF SE

ESRS 2 GOV-1

The supervisory board of a publicly listed European stock corporation (SE) that is composed of the same number of shareholder and employee representatives must, according to section 17(2) of the SE Implementation Act, consist of at least 30% women and 30% men. Since the 2018 Annual Shareholders' Meeting, the Supervisory Board of BASF SE comprises four women, of whom two are shareholder representatives and two are employee representatives, and eight men. The Supervisory Board's composition meets the statutory requirements.

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Following the entry into force of the Act to Supplement and Amend the Regulations on Equal Participation of Women and Men in Management Positions in the Private and Public Sector (FüPoG) on August 12, 2021, if the management board of a listed company consists of more than three persons, at least one woman and one man must be members of the management board (section 16(2) SE Implementation Act). BASF met this requirement in the reporting year. With Dr. Katja Scharpwinkel, there was one female Board member. With six members of the Board of Executive Directors, this corresponds to a 16.7 percentage of women.

In compliance with legal requirements of the FüPoG, the Board of Executive Directors decided on target figures for the proportion of women at the two management levels below the Board of Executive Directors of BASF SE. For the target-attainment period from January 1, 2022, to December 31, 2026, the Board of Executive Directors resolved as targets the quotas achieved as of December 31, 2021: 20.0% for the proportion of women in the management level directly below the Board and 23.2% for the level below that.

For more information on women in leadership positions in the BASF Group, see page 251 onward.

For more information on women in leadership positions in the BASF Group in Germany, see basf.com/diversity_inclusion
The November 2015 Employee Participation Agreement relevant to the composition of the Supervisory Board is available at basf.com/en/corporategovernance.

Shareholders exercise their rights of coadministration and supervision at the Annual Shareholders' Meeting, which usually takes place within the first five months of the business year. The Annual Shareholders' Meeting elects half of the members of the Supervisory Board (shareholder representatives) and, in particular, resolves on the formal discharge of the Board of Executive Directors and the Supervisory Board, the distribution of profits, capital measures, the authorization of share buybacks, changes to the Statutes and the selection of the auditor.

Each BASF SE share represents one vote. All of BASF SE's shares are registered shares. Shareholders are obliged to have themselves entered with their shares into the company share register and to provide the information necessary for registration in the share register according to the German Stock Corporation Act (AktG). There are no registration restrictions and there is no limit to the number of shares that can be registered to one shareholder. Only the persons listed in the share register are entitled to vote as shareholders. Listed shareholders may exercise their voting rights at the Annual Shareholders' Meeting either personally, through a representative of their choice, through absentee voting, or through a company-appointed proxy authorized by the shareholders to vote according to their instructions. At the Annual Shareholders' Meeting 2025, voting rights could be exercised according to shareholders' instructions by company-appointed proxies until the end of the voting process. There are neither voting caps to limit the number of votes a shareholder may cast nor special voting rights. BASF has fully implemented the principle of "one share, one vote." All shareholders entered in the share register are entitled to participate in the Annual Shareholders' Meetings, to have their say concerning any item on the agenda and to request information about company issues insofar as this is necessary to make an informed judgment about the item on the agenda under discussion. Registered shareholders are also entitled to file motions pertaining to proposals for resolutions made by the Board of Executive Directors and Supervisory Board at the Annual Shareholders' Meeting and to contest resolutions of the meeting and have them evaluated for their lawfulness in court. Shareholders who hold at least €500,000 of the company's share capital, a quota corresponding to 390,625 shares, are furthermore entitled to request that additional items be added to the agenda of the Annual Shareholders' Meeting.

BASF Report 2025

Corporate Governance

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The 2023 Annual Shareholders’ Meeting resolved a series of amendments to the Statutes in connection with the format of the Annual Shareholders’ Meeting and the participation options. Accordingly, the Board of Executive Directors is authorized to hold the Annual Shareholders’ Meeting or an Extraordinary Shareholders’ Meeting as a virtual meeting without the physical presence of shareholders or their proxies at the venue of the meeting. The 2025 Annual Shareholders’ Meeting renewed this authorization, which expired on May 8, 2025. It is now valid for a further period of two years until May 8, 2027.

The 2025 Annual Shareholders’ Meeting was held as a virtual Annual Shareholders’ Meeting on the basis of the authorization passed in 2023 pursuant to section 118a of the German Stock Corporation Act in conjunction with section 17(5) of the Statutes. The Annual Shareholders’ Meeting for 2026 is planned as an in-person Annual Shareholders’ Meeting.

» The current Statutes of BASF SE can be found at basf.com/en/corporategovernance.

<Directors’ and Officers’ Liability Insurance>

BASF SE has taken out liability insurance that covers the activities of members of the Board of Executive Directors and the Supervisory Board (directors’ and officers’ liability insurance). This insurance policy provides for the level of deductibles of 10% of damages up to 1.5 times the fixed annual compensation for the Board of Executive Directors as prescribed by section 93(2) sentence 3 AktG.

<Share Ownership by Members of the Board of Executive Directors and the Supervisory Board>

No member of the Board of Executive Directors or the Supervisory Board owns shares in BASF SE and related options or other derivatives that account for 1% or more of the share capital. Furthermore, the total volume of BASF SE shares and related financial instruments held by all members of the Board of Executive Directors and the Supervisory Board accounts for less than 1% of the shares issued by the company.

» For more information on share dealings of members of the Board of Executive Directors and the Supervisory Board, see basf.com/en/directorsdealings

<Share Dealings of Members of the Board of Executive Directors and the Supervisory Board>

(Directors’ dealings to be notified and publicly disclosed under Article 19(1) of the EU Market Abuse Regulation 596/2014 (MAR))

As legally stipulated by Article 19(1) MAR, all members of the Board of Executive Directors and the Supervisory Board as well as close family relatives are required to disclose the purchase or sale of financial instruments of BASF SE (for example, shares, bonds, options, forward contracts, swaps) to the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) and to the company if transactions within the calendar year exceed the threshold of €20,000. In 2025, a total of 11 purchases by members of the Board of Executive Directors and the Supervisory Board of BASF SE and members of their families subject to disclosure were reported as directors’ dealings, involving between 883 and 21,198 BASF shares or BASF ADRs (American Depositary Receipts). The price per share was between €41.62 and €43.45. The volume of the individual transactions was between €37,469.49 and €901,767.98. The disclosed securities transactions are published on BASF SE’s website.

» For more information on securities transactions reported in 2025, see basf.com/en/directorsdealings

<Information on the Auditor>

BASF SE’s Supervisory Board, acting on the recommendation of the Audit Committee, resolved to propose to the Annual Shareholders’ Meeting in 2025 that Deloitte GmbH Wirtschaftsprüfungs-gesellschaft, Frankfurt am Main, Germany, be elected as auditor for BASF SE’s Financial Statements and

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the BASF Group's Consolidated Financial Statements for the 2025 business year, as well as for the auditor's review of the Half-Year Financial Report 2025 and as auditor for sustainability reporting for the 2025 business year.

The Annual Shareholders' Meeting on May 2, 2025, accepted the proposal of the Supervisory Board by electing Deloitte GmbH Wirtschaftsprüfungsgesellschaft as the auditor of the BASF Group Consolidated Financial Statements and Individual Financial Statements of BASF SE for the 2025 business year, as well as the Combined Management's Report and the auditor's review of the Half-Year Financial Report 2025 and as auditor for sustainability reporting for the 2025 business year. Deloitte member firms also audit the majority of BASF Group companies included in the Consolidated Financial Statements. The auditor responsible for the Consolidated Financial Statements since 2024 is Michael Mehren. Auditor Stefan Dorissen is responsible for the Individual Financial Statements since 2024. Information on the total fee paid to Deloitte and auditing firms of the Deloitte group by BASF SE and other BASF Group companies for nonaudit services, in addition to the auditing fee, can be found in Note 31 to the Consolidated Financial Statements on page 419.

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Disclosures Required by Takeover Law¹¹

Disclosures According to Sections 289a and 315a of the German Commercial Code (HGB) and Explanatory Report of the Board of Executive Directors According to Section 176(1) Sentence 1 of the German Stock Corporation Act (AktG)

Share capital and shares

As of December 31, 2025, the subscribed capital of BASF SE stood at €1,142,428,369.92, divided into 892,522,164 registered no‐par‐value shares. Each share entitles the holder to one vote at the Annual Shareholders’ Meeting, with the exception of own shares held by BASF SE (Section 71b of the German Stock Corporation Act), the number of which amounted to 8,196,947 as of December 31, 2025. Further restrictions on the right to vote or transfer shares do not exist. The same rights and duties apply to all shares. According to the Statutes, shareholders are not entitled to receive share certificates (issuance of share certificates). There are neither different classes of shares nor shares with preferential voting rights.

Appointment and dismissal of members of the Board of Executive Directors

The appointment and dismissal of members of the Board of Executive Directors is legally governed by the regulations in Article 39 of the SE Council Regulation, section 16 of the SE Implementation Act and sections 84 and 85 AktG as well as Article 7 of the Statutes of BASF SE. Accordingly, the Supervisory Board determines the number of members of the Board of Executive Directors (at least two), appoints the members of the Board of Executive Directors and can nominate a chair as well as one or more vice chairs. The members of the Board of Executive Directors are appointed for a maximum of five years. The maximum initial term of appointment is three years. Reappointments are permissible. The Supervisory Board can dismiss a member of the Board of Executive Directors if there is serious cause to do so. Serious cause includes, in particular, a gross breach of the duties pertaining to the Board of Executive Directors and a vote of no confidence by the Annual Shareholders’ Meeting. The Supervisory Board decides on appointments and dismissals according to its own best judgment.

Amendments to the Statutes

According to Article 59(1) of the SE Council Regulation, amendments to the Statutes of BASF SE require a resolution of the Annual Shareholders’ Meeting adopted with at least a two‐thirds majority of the votes cast, provided that the legal provisions applicable to German stock corporations under the German Stock Corporation Act (AktG) do not stipulate or allow for larger majority requirements. In the case of amendments to the Statutes, section 179(2) AktG requires a majority of at least three‐quarters of the subscribed capital represented. Pursuant to Article 12(6) of the Statutes of BASF SE, the Supervisory Board is authorized to resolve on amendments to the Statutes that merely concern their wording. This applies in particular to the adjustment of the share capital and the number of shares after the redemption of repurchased BASF shares and after an issue of shares from authorized capital.

Authorized capital

By way of a resolution of the Annual Shareholders’ Meeting on April 25, 2024, the Board of Executive Directors of BASF SE is authorized, with the consent of the Supervisory Board, to increase, until April 24, 2029, on a one‐off basis or in portions on a number of occasions, the company’s share capital by a total of up to €300 million by issuing new shares against contributions in cash or in kind (authorized capital 2024). A right to subscribe to the new shares is to be granted to shareholders. This can also be achieved by a credit institution acquiring the new shares with the obligation to offer these to shareholders (indirect subscription right). The Board of Executive Directors is authorized to exclude the statutory subscription right of shareholders to a maximum amount of a total of 10% of share capital in certain

¹¹ The disclosures provided in this section are part of the statutory audit.

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exceptional cases that are defined in Article 5(8) of the BASF SE Statutes. This applies in particular if, for capital increases in return for cash contributions, the issue price of the new shares is not substantially lower than the stock market price of BASF shares and the total number of shares issued under this authorization does not exceed 10% of the shares currently in issue or, in eligible individual cases, to acquire companies or shareholdings in companies in exchange for surrendering BASF shares.

Conditional capital

By way of a resolution of the Annual Shareholders' Meeting on April 29, 2022, the share capital was increased conditionally by up to €117,565,184 by issuing up to 91,847,800 new shares. The contingent capital increase serves to grant shares to the holders of convertible bonds or warrants attached to bonds with warrants of BASF SE or a subsidiary, which the Board of Executive Directors is authorized to issue up to April 28, 2027, by way of a resolution of the Annual Shareholders' Meeting on April 29, 2022. A right to subscribe to the bonds is to be granted to shareholders. The Board of Executive Directors is authorized to exclude the shareholders' subscription right in certain exceptional cases – as defined in Article 5(9) of the BASF SE Statutes.

Authorization of share buybacks

At the Annual Shareholders' Meeting on April 29, 2022, the Board of Executive Directors was authorized to purchase up to 10% of the BASF shares in issue at the time of the resolution (10% of the company's share capital) until April 28, 2027. At the discretion of the Board of Executive Directors, the shares can be bought back via the stock exchange, via a public purchase offer addressed to all shareholders, via a public request to shareholders for the submission of offers to sell or by other means in accordance with section 53a AktG. The Board of Executive Directors is authorized to sell the repurchased company shares again: (a) on a stock exchange; (b) through an offer directed to all shareholders; (c) with the approval of the Supervisory Board, to third parties by means other than via the stock exchange or through an offer addressed to all shareholders in return for cash payment at a price that is not significantly lower than the stock exchange price of a BASF share at the time of the sale; or (d) with the approval of the Supervisory Board, to third parties for contributions in kind, particularly in connection with the acquisition of companies, parts of companies or shares in companies (including increases in shareholdings) or within the scope of corporate mergers. In the cases specified under (c) and (d), the shareholders' subscription right is excluded. The Board of Executive Directors is furthermore authorized to redeem the shares bought back and to reduce the share capital by the proportion of the share capital accounted for by the redeemed shares. The Board of Executive Directors exercised this authorization in the 2025 business year and, by resolution dated October 28, 2025, approved a share buyback program with a volume of €1.5 billion. Details of the number of shares repurchased in the 2025 business year, the share buyback period and the average purchase price can be found in Note 18 to the Consolidated Financial Statements (on page 370) and in Note 15 to the Financial Statements of BASF SE.

Rights during a change of control

Bonds issued by BASF SE and its subsidiaries grant the bearer the right to request early repayment of the bonds at nominal value if, after the date of issue of the bond, one person – or several persons acting together – hold or acquire a volume of BASF shares in BASF SE that corresponds to more than 50% of the voting rights (change of control as a result of a takeover bid) and one of the rating agencies named in the bond's terms and conditions withdraws its rating of BASF SE or the bond or reduces it to a noninvestment grade rating within 120 days of the change of control event.

> For more information on bonds issued by BASF SE, see basf.com/bonds

The compensation system for the Board of Executive Directors, which was approved by the Annual Shareholders' Meeting on April 25, 2024, provides for the following upon termination of the Board of Executive Directors' mandate after a change of control occurs: A change of control is assumed when a shareholder informs BASF SE of a shareholding of at least 25% or the increase of such a shareholding.

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If the appointment to the Board of Executive Directors is revoked by the Supervisory Board within one year of a change of control, the member of the Board of Executive Directors will receive the compensation outstanding until the end of the regular term as a one-off payment; however, the value of two annual compensations may not be exceeded. The compensation system, on the other hand, does not provide for any special indemnity related to a change of control should a member of the Board of Executive Directors unilaterally terminate the contract prematurely in such a case.

Employees of BASF SE and its subsidiaries who are classed as senior executives of the BASF Group will receive a severance payment if their contract of employment is terminated by the company within 18 months of a change of control event, unless the employees have given cause for the termination by culpable conduct on their part. The employees whose service contracts have been terminated in such a case will receive a maximum severance payment of 1.5 times the annual salary (fixed component) depending on the number of months that have passed since the change of control event.

The remaining disclosures stipulated in sections 289a and 315a HGB refer to situations that are not applicable to BASF SE.

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Management and Supervisory Boards

ESRS 2 GOV-1

Board of Executive Directors

There were six members on the Board of Executive Directors as of December 31, 2025.

On July 24, 2025, the Supervisory Board extended the appointment of Chief Financial Officer Dr. Dirk Elvermann and Board member Dr. Stephan Kothrade, which will expire at the end of the 2026 Annual Shareholders' Meeting, until the end of the 2031 Annual Shareholders' Meeting and the 2028 Annual Shareholders' Meeting. As part of long-term succession planning, the Supervisory Board also appointed Dr. Mary Kurian and Dr. Livio Tedeschi as new members of the Board of Executive Directors on October 28, 2025, effective as of May 1, 2026. The mandate on the Board of Executive Directors of Michael Heinz will end as planned at the end of the Annual Shareholders' Meeting on April 30, 2026.

	Responsibilities (2025 business year)	First appointed	Term expires	Supervisory board mandates within the meaning of section 100(2) of the German Stock Corporation Act (AktG)	Comparable German and non-German supervisory bodies
Dr. Markus Kamieth
Chairman of the Board of Executive Directors
Degree: Chemistry
Year born: 1970
Nationality: German
27 years at BASF	Corporate Development;
Corporate Legal, Compliance & Insurance; Corporate Human Resources; Corporate Communications & Government Relations;
Corporate Investor Relations	2017	2029	-	-
Dr. Dirk Elvermann
Degree: Law
Year born: 1971
Nationality: German
23 years at BASF	Corporate Finance; Corporate Audit; Corporate Taxes & Duties; Global Business Services; Global Digital Services; Global Procurement	2023	2031	-	Harbour Energy plc^{a} (Nonexecutive Director)
Michael Heinz
Degree: MBA
Year born: 1964
Nationality: German
42 years at BASF	Care Chemicals;
Nutrition & Health; Agricultural Solutions; Region South America	2011	2026	-	-
Anup Kothari
Degrees: Chemical engineering, MBA
Year born: 1968
Nationality: US-American
27 years at BASF	Dispersions & Resins;
Performance Chemicals;
Coatings; Battery Materials;
Environmental Catalyst & Metal Solutions; Region North America	2024	2027	-	-
Dr. Stephan Kothrade
Degree: Chemistry
Year born: 1967
Nationality: German
31 years at BASF	Petrochemicals;
Intermediates; Performance Materials; Monomers; Group Research; Greater China; South & East Asia, ASEAN & Australia/New Zealand; Mega Projects Asia	2023	2028	-	-
Dr. Katja Scharpwinkel
Degree: Chemistry
Year born: 1969
Nationality: German
15 years at BASF	European Site & Verbund Management; Global Engineering Services;
Corporate Environmental Protection, Health, Safety & Quality; Region Europe, Middle East, Africa	2024	2027	-	BASF Antwerpen N.V. (Chairwoman of the Supervisory Board)

a Publicly listed

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Consolidated Financial Statements

Further Information

Supervisory Board

In accordance with the Statutes, the Supervisory Board of BASF SE comprises 12 members. The term of office of the Supervisory Board commenced following the Annual Shareholders' Meeting on April 25, 2024, in which the shareholder representatives on the Supervisory Board were elected. In accordance with the applicable article of the Statutes as of the date of the election, it terminates upon conclusion of the Annual Shareholders' Meeting that resolves on the discharge of members of the Supervisory Board for the third complete business year after the term of office commenced; this is the Annual Shareholders' Meeting on April 28, 2028. At its meeting on November 30, 2023, the BASF Europa Betriebsrat (BASF Works Council Europe) unanimously reelected the six employee representatives on the Supervisory Board for the term of office beginning at the end of the Annual Shareholders' Meeting on April 25, 2024. The Supervisory Board comprises the following members (as of February 23, 2026):

	Member of the Supervisory Board since	Memberships of statutory supervisory boards in Germany	Memberships of comparable domestic and foreign supervisory bodies of commercial enterprises
Dr. Kurt Bock, Heidelberg, Germany^{a,b}
Chairman of the Supervisory Board of BASF SE
Former Chairman of the Board of Executive Directors of BASF SE (until May 2018)	June 18, 2020	Bayerische Motoren Werke Aktiengesellschaft^{c} (Vice Chairman, Chairman of the Audit Committee, member of the Personnel and Nomination Committees)	–
Prof. Dr. Stefan Asenkerschbaumer, Stuttgart, Germany^{a,b}
Vice Chairman of the Supervisory Board of BASF SE
Managing partner, Robert Bosch Industrietreuhand KG (RBIK)
Chairman of the Supervisory Board of Robert Bosch GmbH	April 29, 2022	Robert Bosch GmbH^{e} (Chairman)	Stadler Rail AG^{d} (independent, nonexecutive member of the Board of Directors)
Sinischa Horvat, Maxdorf, Germany^{a,c}
Vice Chairman of the Supervisory Board of BASF SE
Chairman of the Works Council of BASF SE, Ludwigshafen site, of the BASF Group Works Council, and of the BASF Works Council Europe	May 12, 2017	–	–
Prof. Dr. Thomas Carell, Munich, Germany^{a,b}
Professor of Organic Chemistry at Ludwig-Maximilians-University Munich	May 3, 2019	–	–
Liming Chen, Beijing, China^{a,b}
Nonexecutive independent Board member of ACWA Power Company SJSC	October 8, 2020	–	ACWA Power Company SJSC^{d} (nonexecutive independent Board member since January 5, 2025)
Tatjana Diether, Limburgerhof, Germany^{a,c}
Deputy Chairwoman of the Works Council of BASF SE, Ludwigshafen site, and member of the BASF Group Works Council	May 4, 2018	–	–
Alessandra Genco, Rome, Italy^{a,b}
Former Chief Financial Officer of Leonardo SpA (until November 2025)	April 29, 2022	–	Elettronica SpA^{e} (controlled interest of Leonardo SpA; member until May 21, 2025); Leonardo Global Solutions SpA^{e} (controlled interest of Leonardo SpA; member from May 20, 2025 to November 30, 2025)

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	Member of the Supervisory Board since	Memberships of statutory supervisory boards in Germany	Memberships of comparable domestic and foreign supervisory bodies of commercial enterprises
André Matta, Großkarlbach, Germany^{a,c}
Member of the Works Council of BASF SE, Ludwigshafen site	April 29, 2022	–	–
Natalie Mühlenfeld, Düsseldorf, Germany^{a,c}
District Manager IGBCE Cologne/Bonn	April 29, 2022	3M Deutschland GmbH^{a} (member until August 31, 2025); Solventum Germany GmbH^{a} (member); Henkel AG & Co. KGaA^{d} (member since January 31, 2025)	–
Michael Vassiliadis, Hannover, Germany^{e}
Chairman of the IGBCE	August 1, 2004	Steag GmbH^{e} (Vice Chairman); RAG Aktiengesellschaft^{e} (Vice Chairman); RWE AG^{d} (Vice Chairman since April 30, 2025); Henkel AG & Co. KGaA^{d} (member); Vivawest GmbH^{e} (member)	–
Tamara Weinert, Mannheim, Germany^{a,b}
Former President and Chief Executive Officer of the Business Area Americas and member of the Leadership Team of Outokumpu Corporation (until October 2025)	April 25, 2024	–	–
Peter Zaman, Antwerp, Belgium^{a,c}
Secretary of the Works Council of BASF Antwerpen N.V.	April 29, 2022	–	–

a Classified by the Supervisory Board as an "independent" member of the Supervisory Board (see page 122 for the criteria used to determine independence)
b Shareholder representative
c Employee representative
d Publicly listed
e Not publicly listed

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Declaration of Conformity Pursuant to Section 161 AktG

Declaration of Conformity 2025 of the Board of Executive Directors and the Supervisory Board of BASF SE

The Board of Executive Directors and the Supervisory Board of BASF SE hereby declare pursuant to section 161 AktG (German Stock Corporation Act)

The recommendations of the Government Commission on the German Corporate Governance Code as amended on April 28, 2022, published by the Federal Ministry of Justice on June 27, 2022, in the official section of the Federal Gazette are complied with and have been complied with since the submission of the last Declaration of Conformity of December 2024.

Ludwigshafen, December 2025

The Supervisory Board of BASF SE

The Board of Executive Directors of BASF SE

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Declaration of Corporate Governance

Declaration of Corporate Governance in Accordance with Sections 289f and 315d HGB

The Combined Declaration of Corporate Governance of BASF SE and the BASF Group, pursuant to sections 289f HGB and 315d HGB, comprises the subchapters Corporate Governance Report including the description of the diversity concept for the composition of the Board of Executive Directors and the Supervisory Board, G1 Business Conduct and Declaration of Conformity Pursuant to Section 161 AktG.

Pursuant to section 317(2) sentence 6 HGB, the auditor checked that the disclosures according to section 289f HGB and section 315d HGB were made.

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[1.6 (Consolidated) Sustainability Statement]

We bring our corporate purpose – We create chemistry for a sustainable future – to life by integrating sustainability into our strategy, our business, and our assessment, steering and compensation systems. We want to secure our long-term success with products, solutions and technologies that create value added for customers, the environment and society.

ESRS Index

ESRS 2 SBM-3 ESRS 2 IRO-2

European Sustainability Reporting Standards (ESRS) Disclosure Requirements covered by the Combined Management's Report

ESRS Disclosure Requirement	Disclosure Requirement	Page
ESRS 2	General Disclosures	147
BP-1	General basis for the preparation of sustainability statements	In all chapters and on page 147
BP-2	Disclosures in relation to specific circumstances	In all chapters and on page 147
GOV-1	The role of the administrative, management and supervisory bodies	From page 115a onward as well as on pages 118a, 128a, 133a, 140a and 288
GOV-2	Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies	From page 115a, 118a and 128a onward
GOV-3	Integration of sustainability-related performance in incentive schemes	133a and 178
GOV-4	Statement on due diligence	293
GOV-5	Risk management and internal controls over sustainability reporting	152 and 91a
SBM-1	Strategy, business model and value chain	15a, 17a, 22a, 154 and 177
SBM-2	Interests and views of stakeholders	In all chapters and on page 159
SBM-3	Material impacts, risks and opportunities and their interaction with strategy and business model	In all chapters and on page 163
IRO-1	Description of processes to identify and assess material impacts, risks and opportunities	In all chapters and on page 163
IRO-2	Disclosure Requirements in ESRS covered by the undertaking's sustainability statement	On this page and on pages 148, 163 and 297
MDR-P	Policies adopted to manage material sustainability matters	In all chapters and on page 150
MDR-A	Actions and resources in relation to material sustainability matters	In all chapters and on page 150
MDR-M	Metrics in relation to material sustainability matters	In all chapters and on page 149
MDR-T	Tracking effectiveness of policies and actions through targets	In all chapters and on page 150
E1 Climate Change		172
E1-1	Transition plan for climate change mitigation	179
E1-2	Policies related to climate change mitigation and adaptation	177
E1-3	Actions and resources in relation to climate change policies	183
E1-4	Targets related to climate change mitigation and adaptation	189
E1-5	Energy consumption and mix	192
E1-6	Gross Scopes 1, 2, 3 and Total GHG emissions	194
E1-7	GHG removals and GHG mitigation projects financed through carbon credits	192
E1-8	Internal carbon pricing	198

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

European Sustainability Reporting Standards (ESRS) Disclosure Requirements covered by the Combined Management's Report

ESRS Disclosure Requirement	Disclosure Requirement	Page
E2 Pollutionb		199
E2-1	Policies related to pollution	200
E2-2	Actions and resources related to pollution	205
E2-3	Targets related to pollution	208
E2-4	Pollution of air, water and soil	209
E2-5	Substances of concern and substances of very high concern	210
E3 Water and marine resourcesc		213
E3-1	Policies related to water and marine resources	214
E3-2	Actions and resources related to water and marine resources	216
E3-3	Targets related to water and marine resources	218
E3-4	Water consumption	219
E4 Biodiversity and Ecosystems		221
E4-1	Transition plan and consideration of biodiversity and ecosystems in strategy and business model	222
E4-2	Policies related to biodiversity and ecosystems	224
E4-3	Actions and resources related to biodiversity and ecosystems	228
E4-4	Targets related to biodiversity and ecosystems	230
E4-5	Impact metrics related to biodiversity and ecosystems change	231
E5 Resource Use and Circular Economy		232
E5-1	Policies related to resource use and circular economy	233
E5-2	Actions and resources related to resource use and circular economy	234
E5-3	Targets related to resource use and circular economy	237
E5-4	Resource inflows	238
E5-5	Resource outflows	239
S1 Own Workforce		248
S1-1	Policies related to own workforce	249
S1-2	Processes for engaging with own workforce and workers' representatives about impacts	254
S1-3	Processes to remediate negative impacts and channels for own workforce to raise concerns	255 and 293
S1-4	Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions	256
S1-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	259
S1-6	Characteristics of the undertaking's employees	261
S1-10	Adequate wages	263
S1-14	Health and safety metrics	263
S1-17	Incidents, complaints and severe human rights impacts	263
S2 Workers in the Value Chain		264
S2-1	Policies related to value chain workers	265
S2-2	Processes for engaging with value chain workers about impacts	268
S2-3	Processes to remediate negative impacts and channels for value chain workers to raise concerns	268 and 293

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

European Sustainability Reporting Standards (ESRS) Disclosure Requirements covered by the Combined Management's Report

ESRS Disclosure Requirement	Disclosure Requirement	Page
S2-4	Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions	269
S2-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	273
S3 Affected Communities		275
S3-1	Policies related to affected communities	276
S3-2	Processes for engaging with affected communities about impacts	279
S3-3	Processes to remediate negative impacts and channels for affected communities to raise concerns	281 and 293
S3-4	Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions	281
S3-5	Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities	286
G1 Business Conduct		288
G1-1	Business conduct policies and corporate culture	291
G1-3	Prevention and detection of corruption and bribery	289 and 292
G1-4	Incidents of corruption or bribery	295

a Reference to chapter outside of the Sustainability Statement
b Name of chapter in BASF Report 2025: E2 Pollution Prevention
c Name of chapter in BASF Report 2025: E3 Water

General Disclosures

ESRS 2 BP-1 ESRS 2 BP-2

The reporting period is the 2025 business year. We include relevant information made available up to the preparation of this report by the Board of Executive Directors at the accounts meeting on February 23, 2026. The general bases of preparation for the Sustainability Statement are described in About This Report (see page 8). Information about corporate governance disclosures relating to sustainability (Disclosure Requirements ESRS2 GOV-1, ESRS2 GOV-2 and ESRS2 GOV-3) is provided in the Corporate Governance Report from page 114 onward. Information on our corporate due diligence (ESRS 2 GOV-4) is incorporated into chapter G1 Business Conduct from page 288 onward. In 2025, we are applying the simplifications based on the European Commission's transitional arrangements (quick fix) in accordance with the Delegated Act 2023/2772. Corresponding information can be found in the chapters E4 Biodiversity and Ecosystems (from page 221 onward), S2 Workers in the Value Chain (from page 264 onward) and S3 Affected Communities (from page 275 onward). In some cases, we have made use of incorporation by reference to minimize redundancies. An overview of the data points incorporated by reference can be found on page 145. We consider the year, in which the ESRS first achieve legal effect, such as the exemption of a European subsidiary, or are to be applied in the context of a national CSRD implementation, to be the year of first implementation. In 2025, we again applied the ESRS on a voluntary basis. As stated by ESRS 1 paragraph 7.7, we have opted not to disclose information relating to research and development (R&D), know-how or the results of innovation that has commercial value and whose publication would result in a competitive disadvantage for BASF.

Material topics along the value chain form the focal points of our reporting and define the reporting boundaries. In identifying, prioritizing and validating material sustainability-related topics, we follow the principle of double materiality, taking into consideration financial materiality and impact materiality. Opportunities and risks have been considered along the entire value chain. The following chapters deal with the material topics, subtopics and sub-subtopics in line with our double materiality assessment.

BASF Report 2025

(Consolidated) Sustainability Statement

Disclosure requirements and data points have been selected according to the materiality of the information if they are considered useful for decision-making and relevant for stakeholders. For more information on the materiality assessment, see page 163 onward. We describe the impacts, risks and opportunities identified in our double materiality assessment in the chapters concerning the respective topical standards. The chapter on opportunity and risk management also includes opportunities and risks pursuant to Disclosure Requirement GOV-5 and presents disclosures on our opportunity and risk management as well as on internal controls over reporting (from page 90 onward). The internal control system for sustainability reporting is described in this chapter, from page 152 onward.

ESRS 2 IRO-2

Our double materiality assessment (see page 163) evaluated the topic S4 Consumers and End Users as not material, given that only a very small portion of our products is sold directly to end users. We provide material information on product safety and product stewardship in the chapter E2 Pollution Prevention (from page 199 onward).

The scope of consolidation applicable to sustainability reporting corresponds to financial reporting. We present general disclosures on the consolidation principles applied to sustainability reporting, additional disclosures on the content and structure of this report and the forward-looking statements and forecasts made in Overview -- About This Report and the Combined Management's Report on page 8. The figures reported on employees in the chapter S1 Own Workforce (from page 248 onward) include all employees working at an entity included in the scope of consolidation of the BASF Group as of December 31, 2025. Any deviations of specific metrics from that reference framework have been noted. We report all data concerning the worldwide production sites of BASF SE, its fully consolidated subsidiaries and its proportionately consolidated joint operations on a topic-specific basis in the chapters covering environmental and social topics. In the environmental reporting of the Group Financial Statements, fully consolidated subsidiaries of BASF SE in which BASF holds an interest of less than 100% are included in full. In the case of proportionally consolidated joint operations and equity-accounted joint ventures over which BASF has operating control, the ESRS data points collected on the basis of operating control are taken into account in full, regardless of BASF's equity interest. Data on work-related injuries at all sites of BASF SE and its subsidiaries as well as joint operations and joint ventures in which we have authority in terms of safety management is compiled worldwide, regardless of our equity interest, and reported in full. Unless otherwise indicated, data on social responsibility and transportation safety refers to the BASF Group's scope of consolidation.

Our product portfolio also changed in 2025 based on acquisitions and divestitures. The material portfolio measures are listed from page 36 onward. In October 2025, BASF completed the divestiture of its Brazilian decorative paints business from its Coatings division and signed a binding transaction agreement with Carlyle on the sale of the automotive OEM coatings, automotive refinish coatings and surface treatment business units (see page 39). The discontinued coatings business was included in full in sustainability reporting, with the exception of information on the more sustainable steering of our product portfolio (TripleS method, see page 157, Loop Solutions, see page 237). In the EU taxonomy, we took the coatings business into account in accordance with the IFRS® Accounting Standards (see page 241). For parameters related to the intensity of, for example, CO_{2} emissions, energy and water consumption per sales, comparable BASF Group sales including the discontinued coatings business have been taken into account.

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

In accordance with the EU Taxonomy Regulation and the supplementary delegated acts, the (Consolidated) Sustainability Statement includes the proportion of the Group's taxonomy-eligible and taxonomy-aligned sales revenue, capital expenditures (including acquisitions and excluding goodwill in accordance with the EU taxonomy) and operating expenditures for the 2025 business year for the six climate targets ("climate change mitigation," "climate change adaptation," "sustainable use and protection of water and marine resources," "transition to a circular economy," "pollution prevention and control" and "protection and restoration of biodiversity and ecosystems").

Sustainability Metrics

Individual sustainability metrics are estimated based on indirect sources, such as sector-average data or other proxies. Due to rounding, individual figures may not add up exactly to the totals shown and percentages may not correspond exactly to the figures shown. As the calculations of our Scope 3 emissions (reported in the chapter E1 Climate Change from page 190 onward) are largely based on models and statistics, they are subject to a high degree of uncertainty. The number of days lost by our workforce (reported in the chapter S1 Own Workforce on page 263) may change over the course of the following business year, as not all relevant information is available on the reporting date. Longer employee absences can only be reported and evaluated after the reporting date, which can lead to deviations from the number reported in the previous year. If additional information is required for individual metrics, we explain these in the corresponding chapters. This applies to changes compared to prior reporting periods, the handling of estimated values and measurement uncertainties.

Our data on environmental protection and safety is collected based on the recommendations of the International Council of Chemical Associations (ICCA) and the European Chemical Industry Council (CEFIC). Data relating to the environment, health and safety (EHS) and to human resources (HR) is recorded in a centrally-managed database. The EHS data is captured for each site and companies based at the respective site; the HR data is captured for each company. We collect data relating to energy as well as Scope 1 and Scope 2 emissions at plant level and aggregate this information for the relevant site as a whole. Environmental data (on pollutant emissions or water volumes, for example) is determined by measurements, calculations or estimations according to the regulatory requirements or legal obligations. The data collection method selected depends on technical limitations (high temperatures do not always allow the use of sensors for direct measurement), the ability to derive data from data already collected, and the proportionality of efforts to take measurements in relation to the emission in question (such as volume flow, operating hours). To increase the robustness of our data, we apply a two-step process in which sustainability data is first recorded and then validated in accordance with the principle of dual control. Additional plausibility checks are carried out by the responsible Corporate Center units at random, after which the data is evaluated based on the respective consolidation criteria and aggregated in the database.

If any changes regarding calculations of metrics have occurred compared with the previous year, or if we have made significant errors in the calculation of these metrics, we have explained this in the respective context. If metrics or their methods of measuring or calibrations are additionally validated by external sources, we indicate this in the respective chapter.

BASF Report 2025
(Consolidated) Sustainability Statement | 149

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Minimum Disclosures Regarding Policies, Actions and Targets

Time horizons specified in our (Consolidated) Sustainability Statement are used in accordance with the ESRS definitions. Policies are adopted by the Board of Executive Directors and define the principles surrounding a topic; requirements govern how a policy is implemented. Policies and corporate requirements generally apply globally at BASF. Information on how we monitor compliance with policies and requirements (ESRS: Concepts) is provided in the context of the respective chapters. If, as is customary at BASF, we do not communicate a base year in this context, we expect that the relevant policy will be generally and continuously adhered to. The table below provides an overview of the general disclosures concerning application of the most important globally valid policies. When developing and implementing policies, we only involve stakeholders in exceptional cases. In the case of standards dealing with co-determination-relevant topics, employee representatives are involved in accordance with local conditions. We have explained any such occurrences in the context of the respective chapter. If no such explanation is given, then stakeholders have not been included with regard to the policy. Our policies are accessible to our employees via an internal platform. We make the relevant requirements or policies available to external target groups via our website. Our sustainability management is based on centrally defined global targets and policies, as well as often decentralized actions, projects or initiatives that we implement in order to drive continuous optimization and further development in the respective area. Actions in accordance with ESRS requirements are explained as such in the respective chapters. For projects or initiatives which do not fall under the definition of the ESRS, we have opted to not make the minimum disclosure requirements for actions.

In general, the targets reported are selected voluntarily. Whenever targets are mandatory under a specific piece of legislation, this has been noted in the respective context. If stakeholders were involved in defining a target, we indicate this in the respective context. Details on the involvement of stakeholders in setting targets can be found from page 159 onward. We have explained any changes to calculations of targets compared with the previous year, or any changes we have made to correct calculation errors, in the respective context.

General disclosures on key global policies

Requirement/policy	Scope of application	Accountable entity	Effect on the value chain
BASF Policy Statement on Human Rights	BASF's voluntary commitment to respect internationally recognized human rights in its own activities and to reinforce such commitment in its relationships with business partners. The BASF Group's Policy Statement on Human Rights defines how BASF fulfills its responsibility in cooperation with the relevant stakeholder groups.	Corporate Legal, Compliance and Insurance	Entire value chain
BASF Code of Conduct	BASF's Code of Conduct lays out the framework to which all employees worldwide must adhere in order to comply with applicable laws and internal requirements as well as ethical business practices.	Corporate Legal, Compliance and Insurance	Entire value chain
Compliance management system (CMS)	The CMS policy supplements the Code of Conduct and describes the actions BASF takes to prevent noncompliant behavior.	Corporate Legal, Compliance and Insurance	Entire value chain
BASF Human Rights Management Policy	The policy regulates the overarching human rights management at BASF and its overall structure, including roles, responsibilities and obligations.	Corporate Legal, Compliance and Insurance	Entire value chain

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

General disclosures on key global policies

Requirement/policy	Scope of application	Accountable entity	Effect on the value chain
Human Rights Due Diligence for Third-Party Workers	The requirement sets forth a multilevel approach to ensuring human rights due diligence with regard to employees of third-party companies.	Corporate Legal, Compliance and Insurance	Entire value chain
BASF's Position on Water Protection	This voluntary commitment by BASF defines how we protect water when purchasing raw materials, operating our sites and when our products are used.	Corporate Environmental Protection, Health, Safety & Quality	Entire value chain
BASF's Position on Forest Protection	This voluntary commitment by BASF defines how we protect forests when purchasing raw materials, operating our sites and when our products are used.	Corporate Sustainability	Entire value chain
Responsible Care Management System^{a}	BASF's Responsible Care Management System consists of several policies that regulate health, safety and environmental protection in accordance with the Responsible Care® Global Charter.	Board of Executive Directors of BASF SE	Own production
Responsible Care Management System
Global standards on CO_{2} emissions and energy data, energy efficiency and energy policies	The standards govern BASF's treatment of CO_{2} emissions and energy data plus the aspects of energy efficiency and energy policies.	Corporate Environmental Protection, Health, Safety & Quality	Own production
Responsible Care Management System
Global standards on environmental protection	The global standards define BASF's approach to emissions to air and water, to waste and to the introduction of sustainable water management.	Corporate Environmental Protection, Health, Safety & Quality	Own production
Responsible Care Management System
Global standards on process safety, emergency management and crisis management	The global standards govern the operation of our sites, emergency preparedness and emergency response.	Corporate Environmental Protection, Health, Safety & Quality	Own production
Responsible Care Management System
Global standards on product, transportation and distribution safety	The global standards govern the safe use of our products.	Corporate Environmental Protection, Health, Safety & Quality	Entire value chain
Procurement policy	This policy defines the organizational framework, basic rules and fundamental principles for procurement activities within the BASF Group.	Corporate Development	Upstream value chain
Procurement requirement	The requirement governs BASF's procurement process.	Corporate Development	Upstream value chain
Risk-based sustainability management (part of the procurement requirement)	As part of our procurement requirement, risk-based sustainability management defines how BASF deals with risks in the procurement process.	Corporate Development	Upstream value chain
Supplier Code of Conduct (part of risk-based sustainability management)	In the Supplier Code of Conduct, BASF defines its expectations regarding environmental, labor and social standards in the supply chain.	Global Procurement; any units with purchasing activities	Upstream value chain
Principles for the responsible sourcing of renewable raw materials	These principles describe how BASF sources renewable raw materials responsibly.	Corporate Development	Upstream value chain
BASF Palm Sourcing Policy	This policy defines the process of purchasing palm-based raw materials in BASF's Care Chemicals division.	Care Chemicals	Upstream value chain

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

General disclosures on key global policies

Requirement/policy	Scope of application	Accountable entity	Effect on the value chain
Requirements for Product Carbon Footprints and eco-efficiency analyses	These requirements stipulate how Product Carbon Footprints are calculated and how eco-efficiency analyses should be performed, thereby laying out the framework for the steering and measurement of sustainability factors at BASF.	Corporate Development	Upstream and downstream value chain
Business partner due diligence	This policy governs compliance requirements for our business partners.	Corporate Compliance	Downstream value chain

a The core of our Responsible Care Management System is our Environmental Protection, Health, Safety & Quality (EHSQ) Policy, for which BASF's Board of Executive Directors is accountable. The Corporate Environmental Protection, Health, Safety & Quality unit of the Corporate Center is responsible for specific monitoring activities and for handling corporate governance tasks.

Internal Control Processes in Relation to Sustainability Reporting

ESRS 2 GOV-5

Topic-specific opportunities and risks (gross risks) are explained in the subchapters of the (Consolidated) Sustainability Statement. The opportunities and risks relevant to our opportunity and risk management processes (net risks) are reported on in Opportunities and Risks (from page 90 onward).

Our internal control system (ICS) for sustainability reporting also covers the Nonfinancial Statement pursuant to section 315b of the German Commercial Code (HGB). The ICS was designed to reflect the COSO Internal Control – Integrated Framework (ICIF-2013) from the Committee of Sponsoring Organizations of the Treadway Commission (COSO). It is an integral part of another framework published by COSO upon which our risk management system is based: Enterprise Risk Management – Integrated Framework (ERMIF-2004).

The main components of BASF's internal control system for sustainability reporting are thus:

Internal control environment
Risk evaluation
Control activities
Information and communication
Monitoring activities regarding the appropriateness and effectiveness of the internal control system

The components are reflected to varying degrees depending on the topic and the risk assigned to that topic.

We also apply the method used in financial reporting to monitor how Scope 1 and Scope 2 emissions – which are among the most important key performance indicators used in steering the BASF Group – are recorded and reported, including with regard to the appropriateness and effectiveness of these performance indicators (for more information, see page 95). Compared with the control system used in financial reporting, the control systems used in other areas of sustainability reporting have a lower degree of formalization. As a rule, they include organizational security precautions such as compliance with basic principles of transparency, dual control and segregation of duties as well as limited access to information based on the principle of necessity, deployment of sufficiently qualified employees and adequate IT systems. The design of the internal control system depends on the topic at hand and is the responsibility of the units involved in data collection, data preparation and reporting. The controls operate at both management and process level.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The responsible Corporate Center units monitor the appropriateness and effectiveness of the internal control systems designed for specific topics. To this end, the individual units choose different approaches depending on the topic, such as evaluating questionnaires on the effectiveness of the internal control system, conducting sample tests to validate the implementation and effectiveness of internal controls or monitoring compliance-related performance indicators. The appropriateness and effectiveness of the financial reporting control system are communicated to the Board of Executive Directors and the Audit Committee (as the responsible organ of the Supervisory Board) to inform them of any control deficiencies with respect to reporting on Scope 1 or Scope 2 emissions.

We have begun compiling a central risk catalog to enable risks to be accounted for consistently in the internal control systems of all relevant BASF Group entities and to ensure proper sustainability reporting. The catalog contains a list of generic risks that could arise from incorrect collection or preparation of the necessary information and reporting with regard to ESRS requirements. The following risks are included:

Incomplete or incorrect implementation of methods for performing the double materiality assessment as required by ESRS 1, paragraph 3 for the purpose of identifying, selecting and prioritizing the sustainability topics to be reported on
Incorrect determination of reporting boundaries under the ESRS, which in the case of operational control may deviate from the reporting thresholds used in financial reporting as determined by concept of financial control
Insufficient or untimely availability of data on the upstream or downstream value chain
With respect to the collection and processing of information, the risk of the information being incomplete, inaccurate or invalid or being unintentionally or intentionally manipulated due to having allowed unrestricted access to information collection devices (such as measuring equipment) or IT systems
General risk associated with operating and managing access to the IT systems used to prepare the Sustainability Statement
Risk associated with the presentation of information in the Combined Management's Report regarding the lack of or incorrect consideration of the qualitative characteristics required by ESRS for proper sustainability reporting as listed in ESRS 1, Appendix B

If the materialization of risk cannot be avoided, the risks are addressed as part of the internal control system. In this context, the risk catalog serves as the basis for performing a systematic analysis of the existing internal control system with the aim of identifying potential gaps in the internal control system for sustainability reporting and taking compensatory measures to hedge the risks until they can be eliminated. The units that collect or process the reporting data are responsible for designing and implementing the controls put in place to minimize risk.

A concept aimed at enabling a Group-wide uniform, systematic assessment of the appropriateness and effectiveness of the internal control system with respect to all sustainability topics on which we report has been implemented step by step since the 2025 business year, starting at the level of the Corporate Center units.

In addition, controls are in place as part of critical reviews held at various management levels during the draft stage of preparing the BASF Report, including the Board of Executive Directors. Furthermore, BASF's Sustainability Reporting Sounding Board is involved as a central decision-making body for issues arising in relation to sustainability reporting and controlling.

BASF Report 2025
(Consolidated) Sustainability Statement

Strategy

ESRS 2 SBM-1

Our business

Our “Winning Ways” strategy revolves around our ambition to be the preferred chemical company to enable our customers' green transformation (see page 15). We aim to grow profitably and create value for our shareholders with our broad portfolio as well as our product and process innovations. Simultaneously, we are further developing our performance culture. We are systematically integrating sustainability topics into our strategy and business as well as into our assessment, steering and compensation systems. This principle is embedded in our corporate purpose: We create chemistry for a sustainable future.

BASF supplies products and services to around 75,000 customers from various sectors and in almost every country in the world. The majority of our customer portfolio consists mainly of large multinationals and medium-sized enterprises. Only a few of our products are marketed to end users directly. We focus on a business-to-business model and on being a partner for a wide range of downstream industries. Our operating divisions are grouped into the Chemicals, Materials, Industrial Solutions, Nutrition & Care, Surface Technologies and Agricultural Solutions segments (see page 64).

The Chemicals segment supplies BASF's other segments and customers with basic chemicals and intermediates. In the Materials segment, we produce advanced materials and their precursors for the plastics and processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications. The Nutrition & Care segment produces ingredients for consumer applications, for example in the fields of human and animal nutrition, cleaning agents and personal care. The Surface Technologies segment offers battery materials, emissions catalysts and precious metal solutions. Agricultural Solutions is an integrated solutions provider of seeds, traits, crop protection products and digital solutions for the agricultural sector.

Our business operations focus on the chemical industry. The table on page 155 lists our sales revenue by sector. Taxonomy-aligned sales revenue is presented separately under EU Taxonomy from page 241 onward. None of our activities involve controversial weapons or exploration of fossil fuels. We supply individual solutions for tobacco cultivation via the product portfolio of our Agricultural Solutions segment. BASF has implemented global processes to ensure that products are only sold in markets where they have been approved. If a product is affected by a marketing ban or loses its approval in a particular market, the product is withdrawn from the market in accordance with local legal requirements. In general, products are phased out based on our voluntary commitments before they are impacted by bans. No products of significance for BASF were impacted by bans in the 2025 business year.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

We generated sales revenue of €59,657 million in the 2025 business year (2024: €61,444 million), see page 48.) The following table shows the distribution of sales revenue among our customers' sectors:

BASF sales revenue in 2025 by sectora

>20%	Chemicals and plastics
10–20%	Transportation and automotive
10–20%	Agriculture
10–20%	Consumer goods
<10%	Construction
<10%	Electronics
<10%	Energy and resources
<10%	Health and nutrition

a In accordance with IFRS® Accounting Standards, we took the coatings business into account for the industry split. The figures correspond to an extrapolation for the full year 2025 based on the distribution of divisions in the previous year and the sales figures as of December 31, 2025, excluding the discontinued coatings business.

We work with more than 70,000 Tier 1 suppliers worldwide. They supply us with important raw materials, chemicals, investment goods and consumables, and perform a range of services. More information on our supplier relationships is provided in the chapter S2 Workers in the Value Chain from page 264 onward. An overview of our business model and inputs, outputs and impacts on our most important stakeholders, as well as of our value chain, can be found in a visual representation (How We Create Value) from page 22 onward. An overview of our workforce by region can be found in the chapter S1 Own Workforce on page 261.

Our sustainability strategy

For our customers' green transformation (see also page 19), we supply them with products that contribute positively to sustainability, for example through their reduced carbon footprint (see page 188). Our transformation approach and the staggering of our transformation projects over time are explained in the E1 Climate Change chapter on page 177.

Our reported sustainability targets apply worldwide and refer to the BASF Group as a whole (for additional information, see page 32 onward). Our strategic approach covers the entire value chain, from the responsible sourcing of our raw materials to safety and resource efficiency in production all the way to more sustainable solutions for our customers.

As part of our strategy, we are channeling our efforts into high-growth markets. For example, we want to expand our organizational structure, production sites and R&D activities in China and India. We are continuously optimizing our organizational structures, production sites and R&D activities worldwide.

Our Verbund concept¹ is based on the integrated linking and steering of our plants. The Verbund creates more efficient value chains – ranging from basic chemicals to high value-added products – while enabling a more resource-efficient, carbon-optimized and reliably controllable production process. By-products from one facility are used as raw material elsewhere, for example. This saves raw materials and energy, avoids emissions, lowers logistics costs and leverages synergies. At the same time, the Verbund offers many opportunities to use renewable and recycled raw materials. Going forward, we want to better leverage this potential (see page 232).

¹ The Verbund concept is not a BASF policy or requirement and therefore also not a policy as defined by the ESRS.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The green transformation of our global value chain

Selected projects in the 2025 reporting year

Offshore wind farm in southern China: grid connection project completed; commissioning planned for 2026

(see E1 Climate Change)

Annual CO₂ reduction of around 7,000 metric tons at the Hannibal site in Missouri by optimizing process control at our incinerators

(see E1 Climate Change)

First commercial loopamid® plant commissioned

(see E5 Resource Use and Circular Economy)

Our ambition:

We want to be the preferred chemical company to enable our customers' green transformation.

Upstream value chain

Procurement of renewable and recycled raw materials

Renewable energy

Supplier management

Code of Conduct
Sustainability-related evaluations
Supplier CO₂ Management Program

Own production

Gradual implementation of new processes

Feed-in of renewable, recycled and low-emission raw materials
Emission reduction

Secure, efficient processes

Operational excellence
Integrated Verbund structure
Smart technology & automation

Downstream value chain

Steering the product portfolio with the TripleS method

More products with sustainability benefits: Sustainable-Future Solutions
More products that close or extend loops: Loop Solutions

Our foundation:

Societal acceptance of our business activities (license to operate)

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Sustainable steering of our product portfolio

The development of our product portfolio is a critical lever in assisting our customers with their green transformation. We particularly rely on our TripleS method (Sustainable Solution Steering) which allows us to evaluate our product portfolio's contribution to categories such as climate change and energy, resource efficiency and circular economy. In addition to implementing new regulatory requirements, we are driving forward the adaptation and development of new production processes with the aim of reducing the environmental footprint of our products. In addition, we use our TripleS method to review the resilience of our product portfolio with regard to environmental and social aspects. The TripleS methodology is founded on clearly defined criteria that are transparently documented in the methodology manual across the respective thematic areas of sustainability (environmental, social, governance – ESG). Currently, there is no generally quantitative, scientific framework available for business-related, more sustainable steering of the product portfolio that companies could refer to when setting targets.

As part of the TripleS method, we categorize our product portfolio into five segments, taking sustainability-related aspects into account: Pioneer, Contributor, Standard, Monitored and Challenged (see graphic). Initially, we review all products to identify any current or possible future negative impacts on sustainability topics. We consider minimum standards such as the BASF Code of Conduct, hazards and chemical exposure over the entire life cycle, expected regulatory trends and reputational risks for BASF. If our portfolio assessment identifies products with sustainability concerns, we classify them either as Monitored, or in case of significant concerns, as Challenged. Products identified as having no negative impacts are reviewed to determine whether they positively contribute to at least one of the following sustainability categories: climate change and energy, resource efficiency, circularity, pollution reduction, water protection, biodiversity, zero hunger and poverty, health and safety. At the same time, the product should not negatively impact any of the other sustainability categories in a significant way. Products where neither a positive contribution to nor a negative impact on sustainability has been identified are classified as Standard. Products where a positive contribution has been identified are classified as either Contributor or Pioneer depending on their contribution level compared with the market standard. In 2025, we slightly modified and further developed the TripleS method to take account of increasingly IT-based support for assessment and regulatory changes regarding chemical safety, among other things.

Taken together, the Pioneer and Contributor products make up our Sustainable-Future Solutions. Products allocated to these segments make a positive sustainability contribution in the value chain. These include, for example, renewable and biodegradable polymers that can be used as alternatives to synthetic polymers in personal care products, and durable powder coatings that have a lower carbon footprint due to the use of renewable raw materials, among other things. We are continuing our efforts to steer our product portfolio even more toward sustainability with our "Winning Ways" strategy. By 2030, more than 50% of BASF's sales relevant to TripleS are to be attributable to Sustainable-Future Solutions. This target was adopted by the Board of Executive Directors in 2023 based on an analysis of BASF's portfolio and our growth forecasts (base year: 41.4%). When setting the target, we considered the startup of our Verbund site in Zhanjiang, China, for example.

BASF Report 2025
(Consolidated) Sustainability Statement | 157

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Share of sales revenue generated by each TripleS segment in the 2025 business year

TripleS-Segment	Product performance	Sales revenue (billion €)
Pioneer	Adequate profitability and positive contribution to sustainability above market standard	11.9 13.2 Percentage share in sales revenue 24.9% (2024: 24.2%)
Contributor	Adequate profitability with contribution to sustainability in line with the market standard with respect to climate change & energy, resource efficiency or circular economy	11.3 12.1 Percentage share in sales revenue 23.6% (2024: 22.1%)
Standard	In line with the market standard with no dedicated contribution to climate change & energy, resource efficiency or circular economy	21.2 23.7 Percentage share in sales revenue 44.4% (2024: 43.5%)
Monitored	Impacted by specific regulatory or customer-specific challenges arising in the medium term (2-5 years) or posing a regional reputational risk	2.5 3.9 Percentage share in sales revenue 5.3% (2024: 7.1%)
Challenged	Impacted by substantial regulatory or customer-specific challenges arising in the short term (≤2 years), containing substances of very high concern (SVHC) when used in the end consumer market, in violation of the BASF Code of Conduct or posing a global reputational risk	0.5 0.7 Percentage share in sales revenue 1.1% (2024: 1.3%)

In 2025, BASF sales revenue² from Sustainable-Future Solutions products came to $48.5\%$ (2024: $46.3\%$ ). Despite a challenging market environment, we continue to make good progress toward achieving our set target. The Corporate Sustainability unit continuously tracks progress in this regard. These analyses are available to operating divisions and decision-makers. Any trends that are identified are recorded and documented as part of the annual operational planning process carried out by Corporate Finance. When collecting our TripleS data, we work on the assumption that we have taken all the latest relevant regulatory developments and all market developments into account. We are limited in the extent to which we are able to differentiate the positive contribution made by our products from the contribution made by competing products because the assessment is made on a qualitative basis and not on the basis of market studies. Using the TripleS method, we continuously review our relevant global product portfolio³ at least every four years. This covers around 40,000 products, taking into account the respective application and region in which the product is marketed. The portfolio relevant to TripleS comprises the sales revenue of the BASF segments from sales products sold to third parties in the business year concerned. This excludes for example business that is not product-related, such as licenses or services.

We have integrated TripleS into the assessment of our R&D processes so as to incorporate the requirements formulated by the European Commission in its Safe and Sustainable by Design framework, among other things. Our use of TripleS creates transparency regarding the contribution to sustainability made by our product portfolio and future products developed by R&D, taking circular design principles into account for example. We are reviewing the sustainability-related challenges our products are facing and we are steering our portfolio in the direction of more sustainable solutions. According to our methodology, in 2025, around €0.8 billion⁴ of our annual expenditure on R&D contributed to potential Sustainable-Future Solutions (2024: around €0.9 billion).

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

We review the effectiveness of TripleS through regular portfolio segmentation according to the method and the set target for sales with Sustainable-Future Solutions. Furthermore, we develop action plans in the case of Challenged products. These include for example research projects and reformulations to optimize products or replace them with alternatives. We are generally phasing out all Challenged products within five years of their initial classification.

» For more information on TripleS, see basf.com/en/sustainable-solution-steering

Interests and Views of our Stakeholders

ESRS 2 SBM-2

The acceptance and support of our stakeholders is crucial for our business success. BASF is therefore engaged in continuous dialog with employees, shareholders, suppliers, customers, members of civil society, nongovernmental organizations and international organizations. We can be contacted directly through our grievance mechanism (see page 291), are involved in networks and initiatives, receive critical feedback in our advisory councils and in the dialog with civil society, and contribute to the communities at our sites.

Sustainability topics are discussed and overseen by the Board of Executive Directors. Our stakeholders' different perspectives and expectations are taken into account when deciding on the company's strategic direction, discussing targets and making business decisions, including through direct dialog with the Board of Executive Directors. For instance, we rely on discussions in our advisory councils (see page 160) to identify areas for improvement with regard to human rights due diligence and the consideration of biodiversity in new investment projects. The Board of Executive Directors also considers this information when making decisions with strategic relevance for the Group and monitors the implementation of strategic plans and target achievement. The CFO and the heads of Group Reporting & Performance Management, Corporate Audit and Corporate Compliance regularly report to the Audit Committee on sustainability-relevant topics. Moreover, the Supervisory Board is briefed by the Board of Executive Directors on the development of material sustainability topics on an ongoing basis.

In our stakeholder engagement we focus on cooperation. The Corporate Center unit Corporate Development is responsible for engagement with societal representatives, while Corporate Human Resources is the Corporate Center unit mainly in charge of the exchange with employees. Corporate Investor Relations is the Corporate Center unit tasked with communicating with shareholders. The aforementioned units report to the Chairman of the Board of Executive Directors. If our transition to climate neutrality were to result in structural changes or have other significant social impacts on employees, we would consult with employee representatives to find socially responsible solutions in accordance with existing participation rights. Together with other companies and the European CSR Europe network, we have worked on the topic of responsible social transition to climate neutrality (just transition). We have contributed to both the development of a European road map and an associated toolbox.

BASF is involved in relevant networks and initiatives. We have been a member of the UN Global Compact since its establishment in 2000. BASF consistently supports the Ten Principles of the UN Global Compact for responsible business conduct and the Sustainable Development Goals. We are active around the world in local Global Compact networks, in some cases in a leadership role. BASF is also a member of the World Business Council for Sustainable Development (WBCSD) and the econsense Forum for Sustainable Development of German Business. BASF participates in several multistakeholder and multisector initiatives. Our diverse commitments include the Chemie³ industry standard for more sustainable value creation, the Cobalt for Development project for improving working and living conditions in artisanal mining cooperatives in the Democratic Republic of Congo, the Global Battery Alliance for a more sustainable and circular battery value chain and the Responsible Lithium Partnership for the responsible use of natural resources in Salar de Atacama, Chile.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Representatives of BASF discuss key issues with independent, international experts in the confidential setting of our own advisory councils. These councils are active for an indefinite period. In this way, BASF aims to gain a better understanding of the impacts of business activities on the environment and society, as well as of risks and opportunities. The trustful exchange within the Human Rights Advisory Council helps us to appropriately fulfill our roles and responsibilities, particularly in challenging human rights situations. The advisory council comprises four independent international human rights experts and meets several times per year with representatives of Corporate Compliance, Corporate Sustainability and relevant experts from BASF, for example from procurement and the operating divisions. The Nature Advisory Council provides BASF with an independent perspective on our activities and dependencies in relation to nature and biodiversity topics and ecosystem services. The aim is to obtain constructive feedback and specific advice from external experts and to facilitate sound decisions in relation to operational projects as well as the further development of our strategic approach. At the end of 2025, it comprised five members from the fields of science, relevant value chains and multilateral organizations. The council meets several times a year with BASF leaders and experts. We discussed the findings from our double materiality assessment with both councils in 2025. For more information on how we utilize the councils and other formats in the context of affected communities, see page 280 onward.

It is important for us to continue our dialog with civil society to maintain a meaningful understanding of public opinions on potentially controversial topics. In 2024, we established a new format for dialog with the Civil Society Forum. Here, we discuss sustainability topics with representatives of nongovernmental organizations and the trade union spectrum in a confidential setting. The aim is to explain the company's activities in current and potential projects to stakeholders and to obtain critical feedback. The subsequent incorporation of that external feedback aims at finding feasible solutions for all stakeholders. The dialog format is spearheaded by the Corporate Sustainability unit and involves relevant experts from the operating divisions and from the Corporate Center and service units. During a visit by civil society organizations to the Ludwigshafen site in 2025, we had an opportunity to exchange ideas on the transformation of the chemical industry and mutually underline the need for constructive cooperation between industry, civil society and politics. We bear a particular responsibility toward the neighbors of our sites. We promote continuous dialog between residents and our site management and strengthen trust in our activities with community advisory panels. Our globally valid guidelines for community advisory panels are based on the grievance mechanism standards in the U.N. Guiding Principles on Business and Human Rights. Through its complementary societal engagement activities, BASF aims to strengthen the communities around its sites worldwide and have a long-term positive impact on the environment and society. BASF is focused on strengthening public health, promoting skills, e.g., for economic participation and employability, and on protecting natural resources. For case-by-case dialog with stakeholders, for example in relation to investments, we use the format of the ESG Council as an instrument where required. BASF establishes this dialog format for a limited period of time with the aim of engaging the relevant stakeholders, especially affected communities and vulnerable groups such as Indigenous peoples, as well as including the societal perspective in its decision-making process. We also consider the concerns of these affected communities, directly and indirectly, through representative experts and civil society organizations. In this regard, we adhere to our Group-wide policies on interactions with representatives of civil society.

An overview of the expectations of our most important stakeholders and the platforms we use to engage with them are summarized in the following:

BASF Report 2025
(Consolidated) Sustainability Statement | 160

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Stakeholder expectationsa

Customers
Stakeholder expectations	Engagement platforms	Exemplary outcomes and milestones reached
- Attractive price-performance ratio	- Strategic customer networks	- Around 40,000 products assessed in terms of their contribution to sustainability using the TripleS method (see page 157)
- Innovative and more sustainable solutions, for example through low-emission products	- Customer-specific cooperations to enable green transformation	- Innovative products and solutions that help our customers achieve their sustainability goals
- Reliable partner		- Quality management system that focuses on customer satisfaction
		- Decentralized certification approach for our business units and Group companies based on international standards such as ISO 9001 and GMP, taking into account our customers' requirements
Suppliers
Stakeholder expectations	Engagement platforms	Exemplary outcomes and milestones reached
- Fair and reliable business relationship	- Supplier CO2 Management Program	- Smallholder Engagement program to support smallholder farmers
- Support in complying with our Supplier Code of Conduct	- Supplier Code of Conduct	- 357 evaluations of BASF suppliers under the Together for Sustainability (TfS) initiative; 1,019 participants at TfS training courses
	- Evaluations & training courses
	- Joint initiatives with suppliers and partners	- Cobalt for Development initiative to improve working and living conditions for artisanal miners in the Democratic Republic of the Congo
	- Sustainability-oriented due diligence management in the supply chain	- Responsible Lithium Partnership with BMW, Mercedes-Benz, Volkswagen, Daimler Truck, Fairphone and GIZ
		- Responsibly Active program aimed at bundling activities in the area of plant-based active ingredients (such as argan and moringa supply chains)
		- Collaboration within TfS on standardizing the calculation of Scope 3 greenhouse gas emissions in the supply chain and on a digital platform for sharing Product Carbon Footprint data
Investors
Stakeholder expectations	Engagement platforms	Exemplary outcomes and milestones reached
- Attractive distributions	- Events with institutional investors, rating agencies and private investors (one-on-one meetings, roadshows, conferences, informational events)	- Capital market update for analysts and investors on the progress of the "Winning Ways" strategy on October 2, 2025 in Antwerp, Belgium
- Strong long-term share price performance		- Distributions to shareholders via dividends and share buybacks are expected to total at least €12 billion between 2025 and 2028 with an annual minimum dividend of €2.25 per share. In 2025, around €2 billion in dividends for the 2024 business year was paid out to the shareholders of BASF SE and shares were repurchased for €355 million.
- Transparency and risk minimization	- Active participation in ratings	- BASF has good credit ratings and aims to maintain its single A rating.
		- BASF has also scored well in key ESG ratings (CDP, ISS, Morningstar Sustainalytics, MSCI) compared with its competitors in the chemical industry.
Employees
Stakeholder expectations	Engagement platforms	Exemplary outcomes and milestones reached
- Occupational safety and health	- Safety and health trainings	- High Severity Injuries (HSI): 0.01
- Attractive and fair working conditions	- Global health management and initiatives	- Health Performance Index: 0.97
	- Measurement of engagement in the employee survey	- Result of employee survey: Engagement Index 77%
	- Regular feedback for leaders
	- Feedback meetings between employees and leaders
	- Cooperation with employee representatives based on mutual trust

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Stakeholder expectationsa

Communities
Stakeholder expectations	Engagement platforms	Exemplary outcomes and milestones reached
- Safe, disruption-free operations	- Societal engagement	- €29 million in societal engagement spending at BASF sites around the world to support health, skills and resources for a sustainable future
- Attractive jobs	- Community advisory panels
- Support for local communities		- For 28 years, children and young people in 45 countries have been able to take part in experiments in BASF Kids' Labs.
		- In 2025, an additional nine Starting Ventures programs were initiated in South America, Africa and Asia to help people from low-income areas improve their economic opportunities and their quality of life.
		- BASF Stiftung focuses on disaster management in the area of international development cooperation. It promotes forward-looking actions, emergency aid and reconstruction. One example is the 2025 year-end donation campaign supporting UNICEF, which raised around €375,000 that was used to support malnourished children in Burundi.
		- More than 1,500 young people from seven countries, supported by around 90 BASF employees, have participated in our Young Voices for a Sustainable Future project, where they were able to address the impacts of climate change on their communities with their ideas.
		- Community advisory panels provide an ongoing platform for conducting open dialog with local communities at our sites.
Societal stakeholders
---	---	---
Stakeholder expectations	Engagement platforms	Exemplary outcomes and milestones reached
- Jobs and taxes	- Advisory councils	- Active participation in sustainability networks (UN Global Compact, World Business Council for Sustainable Development, Alliance to End Plastic Waste)
- Responsible and trustworthy partner	- Civil Society Forum
	- Multistakeholder initiatives
- Production of safe products in compliance with environmental and social standards	- Sustainability networks	- Cofounder of the Global Battery Alliance for the development of standards and means for the steering of a sustainable value chain for batteries
	- Regular interaction with NGOs and civil society	- Visits and constructive discussions with NGOs
		- Political dialog: representation of political interests based on transparent requirements and our publicly stated positions

a The expectations outlined here reflect our understanding of the key expectations of our stakeholders, which is the focus of our stakeholder engagement. These are based on the experience of BASF experts, who are in regular contact with the aforementioned stakeholders.

Our political advocacy is conducted in accordance with transparent requirements and is based on our publicly stated positions. The same applies to our activities in associations. In our Industry Associations Review we have published – exemplary for the fields of energy and climate protection – a comparison of BASF positions and the positions of the most important associations of which we are a member, with explanations on our approach. BASF does not financially support political parties, for example through donations in cash or in kind. This is codified in a global requirement. In the United States, employees at BASF Corporation have exercised their right to establish a Political Action Committee (PAC). The BASF Corporation Employee PAC is an independent, federally registered employee association founded in 1998. It collects donations from employees for political purposes and independently decides how these are used, in accordance with U.S. law.

> For more information on our requirements for responsible lobbying, see basf.com/responsible-lobbying
> For more information on the Industry Associations Review, see basf.com/en/corporategovernance

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Double Materiality Assessment

ESRS 2 SBM-3 ESRS 2 IRO-1

Material Impacts, Risks and Opportunities and their Interaction with Strategy and Business Model

Process

We once again carried out a double materiality assessment in accordance with ESRS requirements in 2025. This built on the double materiality assessment from 2024. The materiality assessment identifies the sustainability matters that are material for our company based on potential and actual material impacts, risks and opportunities. We plan to update this assessment on an annual basis.

We identified and validated company-specific impacts, dependencies, risks and opportunities together with internal subject matter experts. We focused on activities, sites and steps in the value creation process that have an elevated potential for negative impacts and risks. Our assessment was carried out at BASF Group level along our value chain. Stakeholder interests were considered based on both direct and indirect inputs. Direct feedback was obtained (for example, from our Advisory Councils, from the BASF Civil Society Forum and via discussions in multistakeholder networks, see page 159) as well as indirect input (for example analyses of the interests of customers and capital markets based on big data analysis tools or perception studies). To identify sustainability-related opportunities and risks, we drew on findings from BASF's Group-wide opportunity and risk management, among other sources.

Opportunities and risks were identified from the impacts. In addition, opportunities and risks independent of impacts were examined. Since 2024, we have been systematically identifying material sustainability topics based on ESRS requirements as part of our standard risk management process. Furthermore, our impacts and dependencies were reviewed by subject matter experts to identify additional potential risks and opportunities.

Subsequently, we scored impacts, risks and opportunities on the basis of predetermined criteria on a 5-point scale and classified them as material whenever they exceeded a defined threshold. A uniform assessment framework was used to review impacts in terms of their severity, consisting of scale and scope. In the case of negative impacts, we additionally assessed the extent to which an impact was irremediable. We estimated the likelihood of occurrence for potential impacts. To identify material impacts, we established a uniform threshold based on the sum of the factors assessed. This threshold was assigned a higher weighting to negative impacts. The internal subject matter experts used predefined criteria to assess the opportunities and risks with regard to their financial magnitude and likelihood of occurrence. Existing risk management methods and assessment criteria were used as a basis. Our objective here is to ensure that a uniform methodology is applied when assessing financial risks and sustainability-related risks. We prioritize risks based on the severity of their impact and the likelihood of occurrence and thereby look at both financial and sustainability-related risks. In the identification and review process, we work closely with our opportunity and risk management. The findings from the materiality assessment will serve as the basis for documenting opportunities and risks going forward, thus validating them at the same time.

ESRS 2 IRO-2

In a subsequent iterative process, our assessment was reviewed by interdisciplinary experts as well as the experts responsible for corporate opportunity and risk reporting. This process ensured that the assessment logic used in the materiality assessment was applied in a consistent manner throughout the BASF Group and across all specialist units. Finally, the Board of Executive Directors, the Supervisory Board, the Group Works Council and the BASF Works Council Europe were informed about the process and the outcome of the materiality assessment.

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

After identifying the material impacts, risks and opportunities, each was assigned to a specific sub-subtopic, subtopic or topic (in line with the ESRS 1 Application Requirement 16) with the aim of determining materiality across all topics. The responsible subject matter experts subsequently allocated all applicable Disclosure Requirements and resulting qualitative as well as quantitative data points to the material sustainability matters. In the following step, the subject matter experts worked with experts for the overarching materiality process to assess the "materiality of information" at the disclosure requirement and data point level using the European Financial Reporting Advisory Group (EFRAG) criteria of "decision-usefulness" and "stakeholder relevance" according to ESRS 1 Appendix E. This aims to increase the informational value of our reporting at the data point level with a view to the purpose of the regulatory policy, which is to promote financing of the transition toward sustainable development.

Results

ESRS 2 SBM-3 ESRS IRO 1

Our ESRS materiality assessment largely confirmed the results from 2024. The following changes were observed compared to the previous year:

Changes in the double materiality assessment compared to the previous year

E1 Climate Change
Impact eliminated in 2025	Newly identified impacts in 2025
Climate-damaging emissions from oil and gas business	Raw materials extraction from fossil sources
	Emissions during use phase
	Emissions at the end of use phase
	Adaptation of sites and infrastructure
	Impacts of failure to adapt
	Newly identified risks in 2025
	Production losses and costs due to insufficient climate adaptation
	Collapse in demand due to rising energy prices
E2 Pollution Prevention
Impacts eliminated in 2025
Chemical leakages
E4 Biodiversity and Ecosystems
Impacts eliminated in 2025	Newly identified impacts in 2025
Land use by BASF sites	Contribution of production sites to global drivers of biodiversity loss
The use of industrial chemicals and their distribution in the environment may have a negative impact on species
Need for land use due to the cultivation of renewable raw materials
E5 Resource Use and Circular Economy
	Newly identified risks and opportunities in 2025
	Growth through circular economy
	Challenges due to new regulatory requirements
S1 Own Workforce
Impacts eliminated in 2025	Newly identified impacts in 2025
Training and skills development	Promoting health and safety awareness
	Newly identified opportunities in 2025
	Unlocking potential through strong leadership
S2 Workers in the Value Chain
	Newly identified impacts in 2025
	Risk of forced labor in specific supply chains

BASF Report 2025

(Consolidated) Sustainability Statement

In chapters E2 Pollution Prevention and E5 Resource Use and Circular Economy, impacts that were previously listed individually in each value chain step have been aggregated for better readability. This year, impacts relating to water pollution are listed in chapter E2 Pollution Prevention for better readability and to avoid repetition. In chapter S3 Affected Communities, the potential impact with regard to the possible restriction of Indigenous peoples' right to free, prior and informed consent has been expanded to include potential land-related impacts in the value chain. As a manufacturing company, the main impacts of our business relate to climate change (mainly due to our energy requirements), other environmental matters (emissions to air, water as well as biodiversity) and our company's workforce. The risks and opportunities identified have financial effects that affect the presentation of our financial position, financial performance and cash flow as disclosed pursuant to our accounting policies (see Note 23 to the Consolidated Financial Statements on page 388). Affected communities were not involved in the identification of material topics for the Biodiversity and Ecosystems cluster.

Strategies to manage impacts, risks and opportunities

As a company that is active in a very wide variety of different regions and business areas, we take a diversified approach to ensure the resilience of our strategy and our business models. The double materiality assessment is closely interlinked with our opportunity and risk management, so that the results of this assessment are incorporated into both the operational and strategic risk management processes and enable structured assessment by our operating divisions (for additional information on our opportunity and risk management, see page 90 onward). We analyze climate-related physical risks and existing resiliences centrally for our sites (from page 172 onward). In developing our business strategies, we also consider the resilience of our business models with regard to economic, environmental and social aspects as well as their impacts, risks and opportunities. Our operating divisions update their strategies at regular intervals and involve experts from the relevant division as well as from the Corporate Strategy and Corporate Sustainability units. The material topics for the duration of the strategy are identified and evaluated as part of an opportunity-risk analysis. Depending on the extent of the strategy revision, resilience reviews, regulatory aspects and stakeholder expectations are included in order to estimate future market developments. Upstream and downstream value chains can also be taken into account. In addition, we use our TripleS method to review the resilience of our product portfolio with regard to environmental and social aspects. We believe we are currently in a position to address and mitigate the risks identified as material, while at the same time striving to consistently utilize material opportunities.

We provide information on the results of our resilience assessment with respect to these two topics in the chapters E1 Climate Change (on page 172 onward) and E4 Biodiversity and Ecosystems (from page 221 onward). We also report on the disclosure requirement ESRS 2 IRO-1 in accordance with the ESRS requirements in the chapters E2 Pollution Prevention, E3 Water, E5 Resource Use and Circular Economy, S1 Own Workforce, as well as G1 Business Conduct. The following tables list the material impacts, risks and opportunities associated with each topical standard. Additional information on the impacts, risks and opportunities associated with each of the ESRS topical standards is provided in the relevant chapter of this (Consolidated) Sustainability Statement.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Results of the double materiality assessment for the 2025 business year: Material impacts

ESRS standard	Topic/subtopic in the standard	Evaluation/classification	Time horizon (short-, medium-, long-term)	Position in the value chain	Material impacts	Short description of material impacts
E1
More information from page 172 onward	Climate protection	Negative	Medium, long-term	Upstream value chain	Land use change due to sourcing plant-based raw materials	Our procurement of plant-based raw materials creates an incentive to cultivate certain plants and expand the production environment for material loops. This negatively impacts land use.
	Climate protection	Negative	Short-, medium-, long-term	Upstream value chain	Environmental impact of raw materials required for electrification	The manufacture and use of renewable energy requires minerals and metals whose mining and subsequent processing could negatively impact the environment. In addition, their mining poses a risk of inappropriate working conditions in some regions.
	Climate protection	Negative	Short-, medium-, long-term	Upstream value chain	Raw materials extraction from fossil sources	Chemical production uses fossil raw materials that have a negative impact on the environment due to their energy-intensive extraction, as well as the associated land use changes and greenhouse gas emissions.
	Climate protection	Negative	Short-, medium-, long-term	Downstream value chain	Emissions during use phase	Some BASF products, such as propellants or fuel additives, cause emissions that have a negative impact on the environment during use.
	Climate protection	Negative	Short-, medium-, long-term	Downstream value chain	Emissions at the end of use phase	The use of BASF products made from carbon-based raw materials generates greenhouse gases at the end of their life – if recycling is not possible – and thus harms the climate and environment.
	Energy	Negative	Short-, medium-, long-term	Upstream value chain	Climate-damaging emissions due to the use of fossil fuels in our upstream value chain (Scope 3)	The extraction and procurement of fossil energy causes greenhouse gas emissions, air and water pollution and habitat destruction in our upstream value chain.
	Energy	Negative	Short-, medium-, long-term	BASF's own operations	Climate-damaging emissions due to the use of fossil fuels for our production (Scope 1 and 2)	Our own production of energy in the form of steam and electricity using fossil fuels leads to emissions of greenhouse gases and other pollutants and thereby impacts the climate and the environment.
	Energy	Positive	Short-, medium-, long-term	Upstream and downstream value chain	Accelerated transition to climate neutrality through energy transformation	By investing in renewable energy, we can offer our customers products with a reduced Product Carbon Footprint (PCF) and contribute to the transition toward climate neutrality by reducing upstream emissions.
	Climate change adaptation	Negative, potential	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Adaptation of sites and infrastructure	Structural changes and technical adjustments at BASF sites around the world that are necessary in order to protect against extreme weather events – especially in North America, Europe and Asia Pacific – could have a negative impact on the environment and affected communities due to construction activity, the associated land use and increased energy demand.
	Climate change adaptation	Negative, potential	Medium, long-term	BASF's own operations; upstream and downstream value chain	Impacts of failure to adapt	If BASF sites around the world are insufficiently adapted to climate change and the associated extreme weather events, this could lead to negative impacts on employees, local communities and the environment.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Results of the double materiality assessment for the 2025 business year: Material impacts

ESRS standard	Topic/subtopic in the standard	Evaluation/classification	Time horizon (short-, medium-, long-term)	Position in the value chain	Material impacts	Short description of material impacts
E1
More information from page 172 onward	Climate change adaptation	Positive	Short-, medium-, long-term	Upstream and downstream value chain	Innovations as a lever for climate protection and climate change adaptation	Innovations in chemistry and new technologies can contribute materially to climate protection and adaptation. We use our TripleS method (Sustainable Solution Steering) to steer our product portfolio on the basis of our products' sustainability performance.
E2
More information from page 199 onward	Air pollution	Negative	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Regular emissions to air (excluding greenhouse gases; GHG)	Emissions to air (excluding GHG), such as nitrogen oxides, particulate matter and volatile organic compounds (VOCs), are generated in connection with the procurement, production, use and disposal of our products. These emissions contribute to air pollution.
	Water pollution	Negative	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Regular emissions to water	Emissions to water, such as nitrogen compounds, organic substances and heavy metals, are generated in connection with the procurement, production, use and disposal of our products. These emissions contribute to water pollution.
	Substances of concern or of very high concern	Negative, potential	Long-term	Downstream value chain	Impact on human health and the environment of substances of (very high) concern	Due to the sale of products containing substances of concern or of very high concern, irresponsible and improper handling of these products in the downstream value chain could result in water or soil pollution or to an adverse impact on the environment or human health.
E3
More information from page 213 onward	Water withdrawal and consumption	Negative	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Limited availability due to water withdrawal and consumption	Our activities impact water availability through water withdrawal in our own production, as well as water withdrawal and consumption along the entire value chain – particularly in water stress areas.
E4
More information from page 221 onward	Impacts on the extent and state of ecosystems	Negative	Short-, medium-, long-term	Upstream value chain	Impact on land degradation due to the sourcing of raw materials	By sourcing raw materials, we provide impetus for their cultivation and extraction. In some cases, this leads to land degradation.
	Drivers of biodiversity loss	Negative	Short-, medium-term	BASF's own operations	Contribution of production sites to global drivers of biodiversity loss	BASF production sites can have a negative impact on biodiversity and ecosystems through their contribution to climate change, land use, pollution and resource consumption.
	Population size of species, global extinction risk of species	Negative, potential	Short-, medium-term	Downstream value chain	The loss of biodiversity may be facilitated by the use of crop protection products	In the downstream value chain, the use of crop protection products across large agricultural areas could result in a reduction of biodiversity.
	Land use change	Positive	Short-, medium-term	Downstream value chain	More sustainable intensification of farming	The use of our products, including crop protection products in agriculture, enables farmers to increase their productivity, thus supporting food production.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Results of the double materiality assessment for the 2025 business year: Material impacts

ESRS standard	Topic/subtopic in the standard	Evaluation/classification	Time horizon (short-, medium-, long-term)	Position in the value chain	Material impacts	Short description of material impacts
E5
More information from page 232
onward	Resource inflows, including resource use	Negative	Short-, medium-, long-term	Upstream value chain	Sourcing and use of fossil or renewable raw materials	We negatively impact overshooting of the planetary boundaries by sourcing and using fossil or renewable raw materials, for example through emissions, land use and environmental pollution.
	Resource outflows in connection with products and services	Negative	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Use of fossil or renewable raw materials	We negatively impact overshooting of the planetary boundaries by using, processing and incinerating fossil or renewable raw materials, for example through emissions, land use and environmental pollution.
	Waste	Negative	Long-term	BASF's own operations; upstream and downstream value chain	Resource consumption through waste	We negatively impact the planetary boundaries by the waste generated throughout our value chain through procurement, production, use and disposal.
S1
More information from page 248
onward	Adequate wages	Positive	Short-, medium-, long-term	BASF's own operations	Adequate and competitive compensation	Our market-oriented compensation and corresponding additional benefits create attractive working conditions for our employees and make a positive contribution to society.
	Health and safety	Negative, potential	Short-, medium-, long-term	BASF's own operations	Potential health and safety risk	Our employees are exposed to a potential health and safety risk if they work in laboratories and production plants and handle chemicals, including hazardous substances. This is particularly the case if occupational health and safety instructions or regulations in our production processes are not followed.
	Health and safety	Positive, potential	Short-, medium-, long-term	BASF's own operations	Promoting health and safety awareness	High standards of occupational safety and health have a positive effect on the well-being, safety and resilience of employees. Health programs and safety training enable us to promote safety and health awareness that extends beyond the working environment.
S2
More information from page 264
onward	Health and safety	Negative, potential	Short-, medium-, long-term	Upstream value chain	Increased health and occupational safety risks when handling chemical raw materials	In the production of chemical raw materials, there are increased health and safety risks in our upstream value chain, particularly if required safety measures are not complied with. This is a common problem primarily in countries whose national laws do not include any, or low requirements with respect to labor protection standards.
	Child labor	Negative, potential	Short-, medium-, long-term	Upstream value chain	Risk of child labor in specific supply chains	Child labor is a particular risk in critical and less transparent supply chains and in countries with little state control and low incomes. This applies, for example, to our upstream supply chains for renewable raw materials, minerals and seeds. Smallholder farms and artisanal mines are particularly affected.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Results of the double materiality assessment for the 2025 business year: Material impacts

ESRS standard	Topic/subtopic in the standard	Evaluation/classification	Time horizon (short-, medium-, long-term)	Position in the value chain	Material impacts	Short description of material impacts
S2
More information from page 264 onward	Forced labor	Negative, potential	Short-, medium-, long-term	Upstream value chain	Risk of forced labor in specific supply chains	Sourcing minerals or renewable raw materials from countries with little state control may be associated with the risk of forced labor. Workers in regions with poverty and inequality are particularly affected.
S3
More information from page 275 onward	Other social and economic rights	Negative, potential	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Potential adverse effects on health associated with the production and use of chemicals	The production and use of chemicals in our own operations and in our value chain could impact the health of people and communities.
	Other social and economic rights	Positive	Short-, medium-, long-term	BASF's own operations	Contribution to the positive development of communities	Through our business activities, our stakeholder engagement and our societal engagement, we exert a positive economic, social and cultural influence on communities.
	Land-related impacts	Negative, potential	Short-, medium-, long-term	Upstream value chain	Land-related impacts in the supply chain	Our business activities – especially in the sourcing of raw materials – could lead to changes in land use, limited access to land and resources, and violations of land rights for affected communities. This could affect Indigenous communities in particular, for example through disregarding their right to free, prior and informed consent (FPIC).
	Adequate nutrition	Positive	Short-, medium-, long-term	Downstream value chain	Positive contribution to food supply	Our crop protection products and our seeds help to ensure that crops produce good yields in light of increasing disease and pest pressure, so that people benefit from an adequate food supply.
G1
More information from page 288 onward	Corporate culture	Positive	Short-, medium-, long-term	BASF's own operations; upstream and downstream value chain	Global Code of Conduct	Our global Code of Conduct has a positive impact on the workforce in our company and on our value chains.
	Protection of whistleblowers	Positive	Short-term	BASF's own operations; upstream and downstream value chain	Global compliance measures and systems	Our global compliance measures and systems have a positive impact on our own workforce and other employees in our value chains.
	Prevention and detection of corruption and bribery	Positive	Short-, medium-, long-term	BASF's own operations	Anticorruption training	In the mandatory trainings, employees learn how to be vigilant in order to prevent any form of bribery or corruption. In this way, we contribute to a business environment in which corruption and bribery are not tolerated. By being perceived and valued as a trustworthy company, BASF can help to reduce corruption and bribery.

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Results of the double materiality assessment for the 2025 business year: Risks and opportunities

ESRS standard	Topic/subtopic in the standard	Evaluation/classification	Time horizon (short-, medium-, long-term)	Material risks and opportunities	Short description of material risks and opportunities
E1
More information from page 172 onward	Climate change adaptation	Negative, physical	Medium, long-term	Production losses and costs due to insufficient climate adaptation	If production facilities cannot be adequately cooled during extreme weather events such as drought or aridity, this could lead to partial or complete production disruptions as well as reduced production output.
	Climate protection	Negative, transition	Long-term	Rising product prices, and/or production costs and/or lower market growth	Lower-emission production using raw materials with reduced carbon footprints and renewable energy increases production costs and ultimately also product prices. Coupled with societal pressure to consume less, this could lead to lower market growth.
	Climate protection	Negative, transition	Medium, long-term	Fragmentation in national and regional climate politics – and thus in the market	Pronounced differences in the regulatory framework due to divergent regional climate politics pose particular strategic challenges for us as a globally active company.
	Climate protection	Negative, transition	Long-term	Regulatory volatility leading to competitive risks	Political regulations designed to mitigate climate change, such as those set out in the EU Green Deal, could represent a competitive risk for us due to higher costs, for example as a result of administrative effort, and a high level of volatility.
	Climate protection	Positive, transition	Long-term	Market opportunities through climate-smart products	Our broad product portfolio includes, among other things, solutions for the circular economy and climate protection. Increasing societal demands and resulting regulations would offer additional market opportunities for these products.
	Energy	Negative, transition	Short-, medium-, long-term	Rising energy costs due to climate-related regulations	For BASF as an energy-intensive company, risks arise particularly from regulatory changes such as in carbon pricing on emissions trading systems, in taxes and in energy legislation.
	Energy	Negative, transition	Long-term	Collapse in demand due to rising energy prices	Resource scarcity can lead to rising energy prices. As a result, producer and consumer prices could continue to rise, which could further reduce customer demand. This could jeopardize BASF's competitiveness and growth.
	Energy	Positive, transition	Short-, medium-, long-term	Advantageous procurement conditions thanks to renewable energies	Investments in own power assets and long-term supply agreements reduce dependencies on volatile global markets and lead to comparatively lower carbon abatement and energy procurement costs.
E2
More information from page 199 onward	Water pollution	Negative	Medium, long-term	Increased costs for water treatment due to regulatory changes	Regulatory developments concerning emissions to water may require investments in our infrastructure and upgrades of our systems.
	Substances of concern or of very high concern	Negative	Medium-term	Consequences of regulations with respect to substances of (very high) concern for procurement, sale or production	Regulatory changes on substances of concern or of very high concern, such as their restriction, may limit the availability of relevant raw materials and negatively impact market behavior and customer acceptance.
E4
More information from page 221 onward	Impacts on the state of species	Negative	Short-, medium-, long-term	Regulatory requirements for the marketing of chemicals	Changes in the law and other regulatory developments related to how chemicals may actually or are likely to affect the state of species, affect our opportunities to market BASF products.

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Results of the double materiality assessment for the 2025 business year: Risks and opportunities

ESRS standard	Topic/subtopic in the standard	Evaluation/classification	Time horizon (short-, medium-, long-term)	Material risks and opportunities	Short description of material risks and opportunities
E5
More information from page 232 onward	Resource outflows in connection with products and services	Negative	Medium, long-term	Challenges due to new regulatory requirements	New regulatory requirements to protect the environment – especially in Europe, but increasingly also in other regions – are increasing the pressure on BASF’s product portfolio, for example through recyclability requirements or mandatory recyclate content. This can present challenges for us in the sourcing of raw materials, for example due to higher costs and technical restrictions, which in turn can have a negative impact on BASF’s business.
	Resource outflows in connection with products and services	Positive	Medium, long-term	Growth through circular economy	New regulatory requirements and societal expectations regarding the circular economy – for example through mandatory recyclate content or recyclability – create potential market opportunities for BASF.
S1
More information from page 248 onward	Secure employment	Negative	Short-, medium-term	Challenges for engagement and retaining skilled employees	The current economic situation and any resulting structural adjustments at BASF can lead to uncertainty among employees. This poses challenges for the company, for example in terms of maintaining employee engagement. Any supposed decline in the attractiveness of BASF as an employer can make it more difficult to recruit appropriately qualified specialists and managers in global competition.
	Training and skills development	Negative	Short-, medium-, long-term	Loss of critical skills and competencies	Demographic and technological change, changing competence profiles and intensified competition for skilled employees and leaders can lead to a loss of skills and knowledge in key roles within our workforce or affect our ability to adequately and quickly develop them.
	Training and skills development	Positive	Short-, medium-, long-term	Unlocking potential through strong leadership	We promote excellent leadership through targeted development offers for leaders at all levels. Leaders can positively influence the engagement of their employees and, together with their teams, contribute productively and efficiently to the implementation of our strategic corporate targets.
S3
More information from page 275 onward	Other social and economic rights	Negative	Short-, medium-, long-term	Loss of societal acceptance due to potential adverse effects on the health of people and communities	In the event of negative impacts on communities, societal acceptance of our business activities could suffer, trust could be lost in BASF and the risk of litigation could increase.

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Environment

E1 Climate Change

ESRS E1

As an energy-intensive company, we take responsibility for the efficient use of energy, for global climate protection, and are committed to the Paris Agreement. We are determined to follow the path of climate neutrality and to enable our customers' green transformation by providing low-emission chemistry.

ESRS 2 IRO-1 ESRS 2 SBM-3

Our business activities result in the production of greenhouse gas emissions², which have a negative impact on the climate. These are emissions from our production, our energy procurement and our upstream and downstream value chain. We are working to achieve a considerable reduction in these emissions along the entire value chain. This also creates opportunities for our business activities: Thanks to our transformation toward climate neutrality, we can increasingly offer our customers products with a reduced Product Carbon Footprint (PCF).

Resilience and scenario analyses

At the same time, we have to position our business in line with the consequences of climate change and to create resilience. The Double Materiality Assessment chapter from page 165 onward explains how we analyze and ensure the resilience of our strategy and business models.³

Climate-related transition risks are systematically recorded by our opportunity and risk management. Our divisions regularly analyze which of the opportunities and risks identified at Group level apply to their business areas, where possible taking into account the resulting short- and medium-term financial impacts. For example, this allowed us to identify the influence of emissions trading schemes as a risk and changes in demand for more sustainable products as an opportunity. We examine climate-related physical risks and existing resiliences centrally for our sites (see page 173).

In 2024, as part of our business strategy development, we have started to make resilience reviews an even more integral part of our processes. The primary focus here is on our own business. Resilience along the upstream and downstream value chain is only considered as necessary, for example, if a value chain is particularly exposed.

When revising our strategies, we use a variety of scenarios, depending on the scope, to describe future macroeconomic developments (for more information on these scenarios, see the section on climate-related transition on page 174). In contrast to the assumptions made when analyzing climate-related physical risks, the scenarios that we use here limit global warming to different extents. Using multiple scenarios, we address and minimize uncertainties regarding market growth, raw material and energy price developments as well as the expected price development of emissions trading systems, and this enables us to determine risks associated with different future developments. The chemical industry, which is the start of many value chains, can play a key role in the transformation process. Growing electrification – including of our own plants – will considerably increase the need for energy from

Unless otherwise stated, all metrics in the text comply with the consolidation by financial control approach (see also the disclosures on consolidation for the nonfinancial reporting on page 148). The metrics listed in this section on the target-relevant Scope 1 and Scope 2 emissions are part of the statutory audit and have been audited with reasonable assurance.
The terms "greenhouse gas emissions" and "CO₂ emissions" are used synonymously. They include all greenhouse gases in accordance with the Greenhouse Gas Protocol.
The time periods considered in the resilience analysis specified here only correspond exactly to those of the transition risk analysis. Our climate protection targets for 2030 are within the period under review. We consider climate-related physical risks and corresponding resilience over a longer period of time, as these only have an impact in the long term.

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renewable sources going forward. At the same time, the use of fossil raw materials will decline and the circular economy will become more important.

We use a multistage process to review the economic efficiency of investment decisions. The metrics used in this process are calculated for different scenarios, highlighting differences that may affect the decisions. We also use opportunities and risks relating to environmental and social matters to evaluate projects. In addition, we regularly review planned $\mathrm{CO}_{2}$ abatement strategies. We have identified measures when implementing our strategy that will enable low-emission plant operation in the long term. The necessary access to funding as part of the transformation is assisted by our Green Finance Framework.

We also performed a comprehensive analysis of the resilience of the plants at our largest site in Ludwigshafen, Germany, already in 2024. We considered a large proportion of our plants to be well positioned and competitive going forward. A short- to medium-term competition risk was identified for $16\%$ of the plants.⁴ Specific measures – which can also include closures – are already being implemented for these plants so as to continuously secure site competitiveness. We have identified a long-term risk for $6\%$ of the plants, which we address through market-oriented measures.⁴

BASF has published a comprehensive corporate carbon footprint report every year already since 2008. This reports on all greenhouse gas emissions along the value chain – from raw materials extraction to production and subsequent disposal. We regularly analyze the future development of our emissions. Additional greenhouse gas emissions resulting from business expansion are determined as early as the project assessment phase. We build on these principles to capture the current and future impacts that our business has on climate change.

Climate change poses challenges for us but also offers opportunities for our business activities. For example, our products and solutions contribute to reducing greenhouse gas emissions in many areas.

Climate-related physical and transition risks and opportunities

We systematically assess physical and transition influences to identify and assess material climate-related risks and opportunities.

Climate-related physical risks and opportunities

When assessing our production sites for climate-related physical risks, we focus on material sites that make a relevant contribution to our business and our portfolio. The assessment is performed on the basis of climate data from the current Intergovernmental Panel on Climate Change (IPCC) scenarios, which were compiled together with an external partner. In the process, we focus on a climate scenario with a high level of global warming.⁵ This data helps to analyze the potential impacts that climate change could have on the production sites in the coming decades and covers all chronic as well as acute climate-related physical risks. Our assessment addresses current risks over a time horizon of five to ten years as well as long-term risks with a time horizon of thirty years. If long-term risks are identified, we examine whether they also represent a medium-term risk, i.e., within the next 10 to 30 years. If materiality is determined in this context, we supplement the assessment with other, less extreme climate scenarios as necessary. Climate-related physical risks are assessed using geographical coordinates at site level. In a first step, a qualitative assessment is performed and vulnerabilities to various climate risks are prioritized so as to obtain an initial indication of potential material risks. Vulnerability analysis takes both internal and external factors into account. Internal factors include the resilience of plants, infrastructure, operations and services. External factors comprise the external infrastructure, water, energy and raw materials supplies, wastewater treatment and the dispatch of finished goods. In addition, the assessment considers risks affecting the entire site and, where relevant, individual plants or specific areas of the site.

⁴ The figures correspond to the time horizons used by BASF in the course of the assessment (short-term: until 2026, medium-term: until 2030, long-term: after 2030).

⁵ The assessment model was based on the IPCC SSP5-8.5 climate change scenario (high global warming scenario) as the worst-case scenario.

BASF Report 2025
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We anticipate that most sites will be particularly affected by increasing heat and drought, whereas some may be faced with heavy precipitation and a few could also be exposed to flooding, hail, water stress and wildfires. Where risks are estimated to be in excess of €10 million, potential material losses are quantified and an adaptation plan is drawn up. Targeted site- and business-specific measures can involve optimizing process flows and infrastructure, for example. Based on our assessment in the reporting year, we consider our sites to be well positioned for climate change. However, the transportation of key raw materials and products depends materially on water levels on the River Rhine, for example, especially in the Middle Rhein region near Kaub. An extreme drought could significantly impact transportation, or even bring it to a standstill. The identified risk and its potential impacts exceed the current materiality threshold of €10 million. Most of the affected sites contribute only marginally to the overall risk. In logistics we have already implemented countermeasures to ensure security of supply for sites and customers. These include switching to alternative means of transport such as rail or road transport, the expansion of the shipping fleet and the use of special vessels for low water levels (see also page 216). The sites are continuing to work to reduce the residual risk. In parallel, further climate risk assessments of our sites in the coastal region in Mexico have shown potential long-term materiality, also as a result of increasing drought periods, based on the assumption of an IPCC scenario with severe global warming. No significant impacts were identified under moderate scenarios. Regardless of this, smaller measures are planned over the next five to ten years to further strengthen the resilience of the sites.

Climate-related transition risks and opportunities

With respect to climate-related transition risks and opportunities, global climate policy ambitions and the implementation of relevant measures play a decisive role in the continuing growth of the chemical industry and its customer industries. Consequently, we have defined and quantified global long-term scenarios up to 2050 featuring various global warming paths. In addition, a net-zero scenario in the EU and the United States by 2050, and globally by 2060, was also analyzed, which limits global warming to 1.5°C. The fundamental drivers for the scenarios are different societal preferences and, building on these, climate and economic policy objectives. The scenarios are regularly further developed and adapted in response to current macroeconomic and geopolitical developments.

The resulting risks arising from the assessment of scenarios were reviewed for materiality as part of the double materiality assessment. The material transition risks identified at Group level will be systematically examined by our business units and quantified if possible, and countermeasures will be taken where necessary. Adaptation measures can include modifying our product portfolio, investments in new technologies or enhancing existing technologies.

We continuously analyze potential physical and transition opportunities and risks arising in connection with the topics of energy and climate protection as part of our opportunity and risk management (for additional information, see page 90 onward). The scenarios used for the assessment are not used for assumptions in financial reporting (for more information, see page 198 onward).

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Our double materiality assessment (see page 163) identified eleven material impacts on climate change, plus six material climate-related risks and two material climate-related opportunities for BASF (see the following table Results of the double materiality assessment). For information on the relevant time horizons, see the overarching table on the results of the double materiality assessment (page 166).

Results of the double materiality assessment for E1 Climate Change: Impacts

Impact	Evaluation	Position in the value chain	Description
Land use change due to sourcing plant-based raw materials	Negative	Upstream value chain	Our procurement of plant-based raw materials creates an incentive to cultivate certain plants and expand the production environment for material loops. This negatively impacts land use.
Environmental impact of raw materials required for electrification	Negative	Upstream value chain	The manufacture and use of renewable energy requires minerals and metals whose mining and subsequent processing could negatively impact the environment. In addition, their mining poses a risk of inappropriate working conditions in some regions.
Raw materials extraction from fossil sources	Negative	Upstream value chain	Chemical production uses fossil raw materials that have a negative impact on the environment due to their energy-intensive extraction, as well as the associated land use changes and greenhouse gas emissions.
Climate-damaging emissions due to the use of fossil fuels in our upstream value chain (Scope 3)	Negative	Upstream value chain	The extraction and procurement of fossil energy causes greenhouse gas emissions, air and water pollution and habitat destruction in our upstream value chain.
Climate-damaging emissions due to the use of fossil fuels for our production (Scope 1 and 2)	Negative	BASF's own operations	Our own production of energy in the form of steam and electricity using fossil fuels leads to emissions of greenhouse gases and other pollutants and thereby impacts the climate and the environment.
Emissions during use phase	Negative	Downstream value chain	Some BASF products, such as propellants or fuel additives, cause emissions that have a negative impact on the environment during use.
Emissions at the end of use phase	Negative	Downstream value chain	The use of BASF products made from carbon-based raw materials generates greenhouse gases at the end of their life – if recycling is not possible – and thus harms the climate and environment.
Accelerated transition to climate neutrality through energy transformation	Positive	Upstream and downstream value chain	By investing in renewable energy, we can offer our customers products with a reduced Product Carbon Footprint (PCF) and contribute to the transition toward climate neutrality by reducing upstream emissions.
Innovations as a lever for climate protection and climate change adaptation	Positive	Upstream and downstream value chain	Innovations in chemistry and new technologies can contribute materially to climate protection and adaptation. We use our TripleS method (Sustainable Solution Steering) to steer our product portfolio on the basis of our products' sustainability performance.

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Results of the double materiality assessment for E1 Climate Change: Impacts

Impact	Evaluation	Position in the value chain	Description
Adaptation of sites and infrastructure	Negative, potential	BASF's own operations; upstream and downstream value chain	Structural changes and technical adjustments at BASF sites around the world that are necessary in order to protect against extreme weather events – especially in North America, Europe and Asia Pacific – could have a negative impact on the environment and affected communities due to construction activity, the associated land use and increased energy demand.
Impacts of failure to adapt	Negative, potential	BASF's own operations; upstream and downstream value chain	If BASF sites around the world are insufficiently adapted to climate change and the associated extreme weather events, this could lead to negative impacts on employees, local communities and the environment.

Results of the double materiality assessment for E1 Climate Change: Risks and opportunities

Risks and opportunities	Evaluation	Description
Production losses and costs due to insufficient climate adaptation	Negative, physical	If production facilities cannot be adequately cooled during extreme weather events such as drought or aridity, this could lead to partial or complete production disruptions as well as reduced production output.
Rising product prices, and/or production costs and/or lower market growth	Negative, transition	Lower-emission production using raw materials with reduced carbon footprints and renewable energy increases production costs and ultimately also product prices. Coupled with societal pressure to consume less, this could lead to lower market growth.
Fragmentation in national and regional climate politics – and thus in the market	Negative, transition	Pronounced differences in the regulatory framework due to divergent regional climate politics pose particular strategic challenges for us as a globally active company.
Regulatory volatility leading to competitive risks	Negative, transition	Political regulations designed to mitigate climate change, such as those set out in the EU Green Deal, could represent a competitive risk for us due to higher costs, for example as a result of administrative effort, and a high level of volatility.
Market opportunities through climate-smart products	Positive, transition	Our broad product portfolio includes, among other things, solutions for the circular economy and climate protection. Increasing societal demands and resulting regulations would offer additional market opportunities for these products.
Rising energy costs due to climate-related regulations	Negative, transition	For BASF as an energy-intensive company, risks arise particularly from regulatory changes such as in carbon pricing on emissions trading systems, in taxes and in energy legislation.
Collapse in demand due to rising energy prices	Negative, transition	Resource scarcity can lead to rising energy prices. As a result, producer and consumer prices could continue to rise, which could further reduce customer demand. This could jeopardize BASF's competitiveness and growth.
Advantageous procurement conditions thanks to renewable energies	Positive, transition	Investments in own power assets and long-term supply agreements reduce dependencies on volatile global markets and lead to comparatively lower carbon abatement and energy procurement costs.

Our risks and opportunities occur along the value chain. In the upstream value chain, opportunities can be attributed, for example, to advantageous procurement conditions thanks to renewable energies. Risks can result from rising energy prices due to a possible resource scarcity. Within our own company, production losses due to inadequate climate change adaptation and rising production costs due to higher energy prices can generate risks. In the market environment, regulatory requirements can lead to risks, while societal pressure and rising prices can reduce customer demand. On the other hand, climate-smart products can in turn offer market opportunities.

BASF Report 2025

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Strategy and governance

E1-2 E1-3

Climate change is the greatest challenge of the 21st century. Swift and resolute action is needed to achieve the targets agreed in the Paris Agreement. We stand by this responsibility. Climate protection and the transformation of the chemical industry are very important to us and an important part of our corporate strategy (for more information, see page 15). The reduction of emissions in the chemical industry is closely linked to our customers' transformation. We want to be the preferred chemical company to enable our customers' green transformation. However, our key customer industries are facing enormous challenges in reaching their sustainability-related goals. At the same time, the preconditions for business cases at scale do not yet fully exist. Market development, and hence also the speed of green transformation, varies widely between regions and customer industries. Against this backdrop, we are taking a step-by-step approach to the green transformation and focusing our approach even more consequently on development and on the needs of our various customer markets. The focus will continue to be on projects that secure our license to operate. Over time, we stagger our transformation projects based on these priorities.

In recent years, in a first phase, we have already increasingly invested in renewable energy to power our plants. We already today test new technologies and deploy alternative raw materials to launch more sustainable products with a reduced or a net-zero carbon footprint on the market. This also allows our customers to benefit from our emission reduction measures. In the second phase, we are focusing even more on Scope 1 reduction measures with specific opportunities for our business as well as prioritizing projects for which we see increasing customer demand and willingness to pay for low- and zero-carbon solutions. In a first step, we focus on using greater amounts of renewable, recycled and low-emission feedstocks in our existing plants. In doing so, we will make the most of the unique advantages offered by our Verbund. We are expecting demand for more sustainable products to outpace supply in the medium term, contributing to profitable growth for BASF. As the markets for more sustainable products grow, we want to be in a position to fund the necessary investments in new production technology and also to apply and scale up the new technologies that we are currently developing and, in some cases, already piloting. These technologies also require qualified employees and service providers.

In line with our market-oriented approach and the reduced speed of industrial feedstock transformation, we have adjusted our investments to an expected €1.2 billion from 2026 to 2029. We continue to assume that most of the major capital expenditure for our green transformation will be incurred in the third phase after 2030.

Policies, requirements and principles

General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). These include the Responsible Care Management System and, as part of this, our global standards in terms of CO_{2} emissions and energy data, energy efficiency, energy concepts and environmental protection. Also listed there are our procurement policy, our procurement requirement, our risk-based sustainability management for procurement, the Supplier Code of Conduct, our principles for the responsible sourcing of renewable raw materials and our requirements for PCFs and eco-efficiency analyses. The specific aspects of these policies are explained in the following section.

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We have established comprehensive management and control systems to minimize negative environmental impacts. Our Responsible Care Management System (for more information, see page 201 onward) includes not only Group-wide requirements and guidelines for health and safety (for more information, see page 251) but also the areas of environmental protection and energy. Our global environmental protection standards serve to assess environmental impacts such as those resulting from $\mathrm{CO}_{2}$ emissions. Our global energy standards are specifically aimed at reaching our Scope 1 and Scope 2 climate protection targets (see Global targets). In them, we undertake to continuously improve the energy efficiency of our operating procedures by implementing energy management systems, and to drive forward resource-saving and economic production at our sites. Moreover, we have defined general guidelines for optimizing existing energy supply structures and developing new energy supply concepts. These also involve evaluating low-emission and emission-free alternatives such as electricity and steam supply from renewable sources. We use requirements for systematically collecting and monitoring emission and energy data as the basis for improving our sustainability performance and steering our climate protection targets.

We address climate change adaptation centrally through our approach to assessing climate-related physical risks (see page 173). Based on this, our sites resolve and implement local measures such as adapting logistics to low water as well as flood protection measures. The risks associated with adapting to climate change depend heavily on the geographical location of our sites, site-specific conditions and the underlying regulations in the respective countries, and in some cases differ considerably. An overarching policy therefore does not exist.

We have also established guidelines and requirements for managing our emissions along the value chain, and thus our Scope 3.1 target and the Scope 3.1 emissions for our net-zero target by 2050. Our Procurement organization has established a global risk-based management system for our upstream supply chain (see page 267). We have defined relevant standards for this in a global procurement requirement. Our overarching procurement policy also includes ensuring BASF's secure supply, including raw materials. We expect our suppliers to comply with internationally recognized environmental standards. Our expectations are set out in the globally valid Supplier Code of Conduct (see page 267), which also includes the deployment of energy-efficient, environmentally friendly technologies. We continuously enhance our policy and requirement as well as our structures and processes in order to adapt to changing conditions. We endeavor to ensure compliance with these guidelines using a multistage control process (see page 267).

In addition, BASF has drawn up principles for the responsible sourcing of renewable raw materials, plus standards in relation to PCFs and eco-efficiency analyses of products with the aim of reducing our products' carbon footprints.

Incentive schemes and organizational structures

ESRS 2 GOV-3

We have laid the foundations for our successful transformation by establishing internal incentive schemes and setting up our organization accordingly.

We anchored reducing our Group-wide $\mathrm{CO}_{2}$ emissions (Scope 1 and 2) as one of the most important nonfinancial key performance indicators in the BASF Group's steering and compensation systems back in 2020, giving it even more weight. This is one of three equally weighted $(33.3\%)$ strategy targets for the long-term incentive (LTI) of the Board of Executive Directors and senior executives. The compensation of the Supervisory Board does not include any variable components and is therefore not linked to the achievement of targets.

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The targets in the short-term-incentive (STI) program for senior executives in our operating business units include financial targets with a 75% weighting. Other targets with a total weighting of 25% include occupational and process safety, sustainability and further development of the operating divisions, the first two of which are sustainability-related. The other targets are division-specific, adapted to the respective situation and are considered holistically. The sustainability target in 2025 includes elements that contribute to our green transformation, such as sales of our Sustainable-Future Solutions (for more information, see page 157) or the increase of the share of purchased raw materials with supplier-specific PCFs (for more information, see page 187).

» For additional information on integrating sustainability-related achievements into our incentive systems, see the Compensation Report, which will be publicly available at basf.com/compensationreport.

Our organizational structures are designed in such a way as to enable a market-driven transformation to a more sustainable product portfolio, plus the achievement of our climate protection targets. The Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality, which reports to a member of the Board of Executive Directors, is responsible for our Responsible Care Management System. The Corporate Sustainability unit, which reports to the Chairman of our Board of Executive Directors, develops the BASF Group's climate protection targets and tracks emission reduction levers for target achievement. Together with Corporate Sustainability, the Global Procurement unit, which reports to the Chief Financial Officer, is responsible for the purchasing processes and procurement requirements relating to our raw materials-related targets. The BASF Renewable Carbon unit within Global Procurement is continuing to drive the sourcing of renewable raw materials and biomass for BASF's operating divisions. This is the counterpart to BASF Renewable Energy GmbH, the subsidiary that coordinates the sourcing of renewable energy.

Transition plan for climate change mitigation

E1-1

We are pursuing ambitious climate protection targets. We want to reduce greenhouse gas emissions from our production processes (Scope 1) and our energy purchases (Scope 2) by 25% by 2030 compared to the base year of 2018, and are aiming to achieve net-zero greenhouse gas emissions by 2050 (see also the section Global targets from page 189 onward). Based on the emission reduction pathways described by the International Energy Agency (IEA) in its Net Zero by 2050 study, our target is compatible with limiting global warming to 1.5°C. The targeted reduction by 25% is below the reference value calculated from the data of the study. Already today, our plants for producing basic chemicals such as ammonia, methanol and high value chemicals have an emissions intensity below the values defined by the IEA for 2030.

» For additional information on the analysis of our Scope 1 and Scope 2 target and on compatibility with the goals of the Paris Agreement, see basf.com/corporate_carbon_footprint

Above and beyond our own production, we take responsibility for emissions along our value chain and have also set ourselves a target for our raw materials-related Scope 3.1 emissions¹¹ (see Global targets from page 190 onward). However, the IEA study does not provide a basis for deriving an emissions reduction pathway for these emissions.

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To achieve our climate protection targets, we have developed a transition plan $^{12}$ that shows our emissions reduction pathway based on the most important levers. We are focusing on the following emission reduction levers $^{13}$ to reduce our greenhouse gas emissions from our own production and energy purchases (Scope 1 and 2):

Renewable energy: We are increasingly meeting our electricity demand from renewable sources (see the actions on page 183).
Operational excellence: Our operational excellence activities are continually improving the energy and process efficiency of our plants (see the actions on page 185).
Low-emission steam generation: Low-emission steam generation: In the future, we will increasingly rely on electrification for steam generation and hence also tap previously unused waste heat potential (see the actions on page 185).
Climate-smart technologies: We are developing completely new emission-free and low-emission processes, and are assessing and piloting new technologies for a more sustainable chemistry (see the actions on page 186).

Transition plan for climate change mitigation
million metric tons of $\mathrm{CO}_{2}$ equivalents

a Reference target value of a $1.5^{\circ}\mathrm{C}$ -compliant reduction pathway

Roughly half of BASF's Scope 1 and Scope 2 emissions are attributable to energy produced to operate our plants. Scope 2 emissions can be reduced by up to 3.2 million metric tons of $\mathrm{CO}{2}$ by 2030 using the "renewable energy" lever. Additional emission reductions of up to 0.6 million metric tons of $\mathrm{CO}{2}$ (Scope 1) are possible in the period up to 2030 using the "low-emission steam generation" lever. In the long term, new steam generation technologies such as heat pumps and e-boilers not only enable emission reduction but will also enable decoupling of highly efficient steam and power generation in combined heat and power plants. The electricity generated from this today can then also be provided using renewable energy. The other half of our Scope 1 and Scope 2 emissions arise in our production processes. One way of reducing these emissions is the continuous improvement of our plants (operational excellence). We see a reduction potential of up to 0.6 million metric tons of $\mathrm{CO}{2}$ (primarily Scope 1), which we aim to achieve by 2030. Furthermore, we are working to develop and implement climate-smart technologies so as to facilitate lower-emission production. This results in a further reduction potential of up to 1.1 million metric tons of $\mathrm{CO}{2}$ (Scope 1) by 2030. Our emission reduction levers enable the reduction of growth-related $\mathrm{CO}_{2}$ emissions that will be added by 2030, which are

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associated with organic growth and the investment in our new Verbund site in southern China. All reduction measures implemented are to be regarded as long-term. We will counteract growth-driven emission increases between 2030 and 2050 primarily using the “climate-smart technologies” and “low-emission steam generation” levers.

The transition plan reflects the market-driven transformation approach set out in our “Winning Ways” strategy, in which we have adopted a step-by-step approach (see also Strategy and governance on page 177). For the progress made in implementing our transition plan, clustered by the relevant emission reduction levers, see section Actions (page 183). We continuously evaluate and prioritize specific actions for emission reduction and target achievement from an economic and technological perspective. We also continuously analyze our portfolio. Consequently, the representation in the graphic depicts the current status of our planning at the time of the publication of the transition plan at the beginning of 2025, but is subject to future updates. We will only consider external offsetting measures for our Scope 1 and Scope 2 emissions¹⁴ as a temporary measure in the medium term if our activities were not to make the desired contribution to reducing emissions.

As an energy- and emissions-intensive sector, the chemical industry today has a significant amount of potential locked-in greenhouse gas emissions.¹⁵ This also applies to BASF and was taken into account when assessing our emission reduction levers. Since significant financial resources will be needed to transform our plants, locked-in emissions from assets jeopardize the achievement of our targets in principle. Potential locked-in emissions are factored into our investment decisions, such as the plans for our new Verbund site in southern China. From start of commissioning in 2025 onward, the latter is already supplied exclusively with electricity from renewable sources and shall serve as a model for more sustainable chemical production.

Few of our products lead directly to CO₂ emissions during their use phase. Nevertheless, we also aim to further reduce these emissions by constantly looking for new, more sustainable solutions (see Our Product Carbon Footprints on page 188) and have already achieved significant emission reductions as a result (see the reduction in Scope 3.11 in section Actions along our value chain on page 187).

The transition plan is embedded in our financial planning and was approved by the Board of Executive Directors and the Supervisory Board. It is based on investments of around €0.6 billion in Scope 1 measures between 2026 and 2029. These are part of BASF’s green transformation expenditures of an expected €1.2 billion between 2026 and 2029. In line with our market-oriented approach and the reduced speed of industrial feedstock transformation, we have adjusted our investments. We aim to continue to promote the use of renewable energies with long-term supply agreements.

In 2025, we invested €77 million, which was attributable to gas-related economic activity (see tables in EU Taxonomy chapter from page 245 onward). In addition to investments made to achieve our emission reduction target, we have also invested in steam generation at the site in Zhanjiang, China. A small part of steam generation there will come from a boiler fired using natural gas, among other things, alongside the future use of process waste heat steam. In addition, there were no significant taxonomy-aligned investments/capex with respect to the environmental objectives of climate change mitigation and climate change adaptation. The low coverage of BASF’s activities in the EU taxonomy and the reporting criteria currently used, at present provide a picture of BASF’s potential sustainability contribution that is only of limited informative value. The small number of activities that fall under the climate change mitigation environmental objective are presented under EU Taxonomy (see page 241 onward). Hence, BASF is not pursuing any further plans to align economic activities with the provisions of Delegated Regulation (EU) 2021/2139.

¹⁴ Scope 1 and Scope 2 (excluding the sale of energy to third parties). The emissions account for 96% of total Scope 1 and Scope 2 emissions in relation to the base year. Greenhouse gases according to the Greenhouse Gas Protocol, converted into CO₂ equivalents (CO₂e).

¹⁵ These are future greenhouse gas emissions that are likely to be caused by key assets or products within their operating lifetimes.

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Responsibility in our value chain

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We are focusing on procurement-specific actions to reduce our raw materials-related emissions (Scope 3.1) and are working closely together with our suppliers (see Actions along our value chain on page 187). In recent years, we have been able to considerably increase the data availability and thereby the transparency of our raw materials-related emissions, and aim to steer these more precisely via our associated Scope 3.1 target. What is more, we are taking responsibility for our other emissions along the value chain (see page 187 onward). Reducing Scope 3 emissions – which account for the majority of our total emissions – presents us with particular challenges, as these are only partly within our own direct sphere of influence and are subject to a large number of external factors.

We are also increasingly focusing on circularity in the form of renewable and recycled raw materials and raw materials based on the use of $\mathrm{CO}_{2}$ in order to move from linear value creation to closed-loop material cycles (see page 234). In the future, we will increasingly drive forward sourcing of renewable raw materials and deploy a make & buy approach analogous to that with which we source renewable energy. Feeding in greater amounts of renewable, recycled and low-emission raw materials in our existing plants will allow us to leverage the unique advantages of our Verbund and to offer our customers products with lower PCFs.

We use a digital solution that continuously determines the PCFs of our products$^{16}$ (see Product Carbon Footprints) to increase transparency about our product-specific greenhouse gas emissions and focus $\mathrm{CO}{2}$ reduction measures on those areas where they bring the greatest added value. These PCFs include all greenhouse gas emissions – from raw materials extraction to the finished product leaving the factory gates (cradle-to-gate). This lets our customers benefit from lower $\mathrm{CO}{2}$ emissions in the value chain. In addition, we offer our customers solutions that help prevent greenhouse gas emissions and improve energy and resource efficiency.

Moreover, our TripleS method for steering the sustainability performance of our product portfolio is a material element in the process of enhancing transformation topics relating to climate change, energy, resource efficiency and the circular economy (for more information, see page 157 and our resilience and scenario analyses on page 172). In addition to implementing new regulatory requirements, we are driving forward the adaptation and development of new production processes with the aim of reducing the environmental footprint of our products. Criteria for reducing $\mathrm{CO}_{2}$ emissions are a key part of the evaluation process.

> For more information on TripleS, see basf.com/en/sustainable-solution-steering

All parts of society must work together to effectively protect the climate. The basis is a political and regulatory environment that promotes innovation in climate protection, makes it possible to develop new processes that are competitive internationally and resolutely drives forward the expansion of renewable energies. Our aim is to contribute to shaping the transformation toward climate neutrality in a socially just manner (just transition). We include the viewpoints of our external stakeholders in our decisions and actions using dialog forums and advisory councils such as the Nature Advisory Council, which we established together with external experts (for more information, see page 160). Together with Vulcan Energy, for example, we provided information about the current status and next steps of the geothermal project in Ludwigshafen and the Vorderpfalz region in community townhall events in 2025 (for more information, see page 185). The Civil Society Forum, founded in 2024, also provides space for confidential exchange with representatives of the civil society and trade union spectrum (for more information, see page 160).

$^{16}$ This includes all BASF products of all A companies and some selected B companies, excluding traded goods. For more information on the Group’s legal structure, see page 14.

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In addition, we support various national and international initiatives and are involved in partnerships. For example, we engaged in close dialog with the Science Based Targets initiative (SBTi), which has derived science-based climate protection targets for the chemical sector.

> For more information on climate protection, see basf.com/climate_protection

We are committed to reporting transparently on our climate protection targets and progress, as well as on the impacts of climate change on BASF. In this context, we support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We have also participated in the program established by the international nonprofit organization CDP for reporting on data relevant to climate protection since 2004. BASF achieved a score of A in CDP's 2025 climate change questionnaire, again attaining Leadership level. Companies at Leadership level are distinguished by factors such as the completeness and transparency of their reporting.

> For more information on the CDP climate change questionnaire, see basf.com/en/cdp

Actions

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We consistently align our actions with our climate protection targets, based on a comprehensive analysis of our emissions. The transformation of our company toward a low-emission chemistry is closely linked to our customers' transformation (see also Strategy and governance on page 177).

No significant capital and operating expenses within the meaning of the EU taxonomy were incurred in the business year 2025 for the actions described.

Renewable energy

Roughly half of our Scope 1 and Scope 2 emissions are attributable to our plants' energy demand. A core component is therefore converting our energy supply from fossil to renewable sources; this applies especially to our electricity supply. In 2025, electricity from renewable sources as a share of total electricity consumption rose further compared with the previous year to 36% (2024: 26%). Our electricity consumption will increase significantly in future due to the planned gradual electrification of our steam generation and the switch from natural gas-based to electricity-based, low-emission production processes.

As regards the transformation of our electricity supply, we are pursuing a make & buy approach in the short, medium and long term. On the one hand, BASF is investing in its own renewable power assets. On the other hand, we are focusing on purchasing green electricity on the market through long-term supply agreements with plant operators, green electricity purchase agreements or renewable energy certificates, depending on the region and market regulations.

In 2025, we further advanced the supply of electricity from renewable sources. Our new Verbund site in Zhanjiang in southern China, where we started manufacturing the first products from the Verbund in November 2025, is powered entirely with electricity from renewable sources. A joint venture was established for this purpose with the Mingyang Wind Power Group Limited, which includes the development, construction and operation of an offshore wind farm in Zhanjiang. The wind farm is under construction and has a planned capacity of 500 megawatts. The grid connection project has been successfully completed and the wind farm is scheduled to start operation in 2026.

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Since the beginning of the 2025 business year, our Zhanjiang site has already been supplied with 100% electricity from renewable sources through a supply agreement with the State Power Investment Corporation (SPIC). In addition to the existing long-term supply agreements with the SPIC, we have entered into a supply agreement with China Energy Engineering Group Guangdong Electric Power Design Institute (GEDI) to source electricity from renewable sources over a period of 25 years. We also made progress at other Asian sites in 2025: Six of our production sites in Shanghai will be supplied with 250 gigawatt hours of electricity from renewable sources via China Huaneng Group in the future. This agreement also includes the first ever cross-business-zone¹⁷ electricity supply agreement for electricity from renewable sources from the Chinese provinces of Guangxi and Yunnan to Shanghai. BASF Taiwan has also taken another step toward energy transition. Our Kuanyin site had already participated in the first green electricity auction held by Taiwan Power Company (Taipower), Taiwan's largest electricity supplier, in 2023 and had won the bid of a small amount of renewable energy for three years. In 2025, the Changhua site was also successful in a similar auction.

In spring 2025, we signed an agreement with SP Group (Singapore Power) to install solar rooftop panels at two of our production sites in Singapore. In 2023 and 2024, we had already signed long-term power purchase agreements for electricity from renewable sources at our three sites in Jiangsu, China, and for six of our production sites in Korea.

The Hollandse Kust Zuid offshore wind farm, a joint project with Vattenfall and Allianz, has been operational since the summer of 2024. With 139 turbines and a capacity of 1.5 gigawatts, it is one of the largest subsidy-free offshore wind farms in the world. We use the electricity generated to supply our production sites in Europe, particularly Ludwigshafen, Germany.

In North America, we were able to secure around 150 megawatts of solar generation capacity through virtual power purchase agreements back in 2022. These solar power plants are already operational. Further long-term supply agreements exist with X-ELIO, providing capacity of 48 megawatts of solar power to supply the Freeport, Texas site (Liberty project) and with other developers, providing 33 megawatts of solar power for the Freeport site and 35 megawatts of wind energy for the Freeport and Pasadena sites in Texas. With the Liberty project, which went into operation in 2025, the purchased electricity for our Verbund site in Freeport will come from 100% renewable energy sources. In some regions, we have also acquired renewable energy certificates. In addition, at the end of 2025, BASF concluded an agreement with BP Energy Retail Company for the purchase of renewable energy certificates. The 15-year agreement covers a wind capacity of approximately 47 megawatts.

The carbon footprint of purchased electricity in 2025 was around 0.14 metric tons of CO₂ per MWh (market-based approach) (2024: 0.20 metric tons of CO₂ per MWh). For the 2025 business year, by using electricity from renewable sources, we were able to reduce our greenhouse gas emissions by around 1.5 million metric tons of CO₂ compared to the use of electricity from fossil sources (for more information on the expected emission reductions, see our transition plan on page 180).

In order to align the supply of green electricity with the decreased transformation speed, BASF sold its 49% stake in the Nordlicht 1 and 2 offshore wind farms back to Vattenfall in 2025. This transaction is in line with BASF's disciplined approach to capital allocation, as well as BASF's market-driven, step-by-step transformation approach as part of the "Winning Ways" strategy. At the same time, BASF continues its collaboration with Vattenfall, securing a long-term supply of electricity from renewable sources for chemical production in Europe – at a time when additional green electricity will be needed.

¹⁷ "Cross-business zone" here means that electricity from renewable energies generated in other Chinese provinces (e.g. in Guangxi or Yunnan) is used to supply production facilities in Shanghai.

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Operational excellence

Through our operational excellence projects, we aim to operate our plants even more efficiently, to make our processes even more resource-saving and thereby reducing CO₂ emissions. Certified energy management systems according to DIN EN ISO 50001 at all relevant production sites play a particularly important role here.¹⁸ These help us to continuously identify and implement potential for improvement in energy efficiency. This not only reduces greenhouse gas emissions and saves valuable energy resources but also increases our competitiveness.

In 2025, we implemented more than 550 measures to reduce energy and resource consumption and increase our competitiveness, which led to a reduction in emissions of around 240,000 metric tons of CO₂ (for more information on the expected emission reductions, see our transition plan on page 180). In Hannibal, Missouri, for example, natural gas consumption has been reduced by optimizing process control at our incinerators, resulting in an annual CO₂ reduction of about 7,000 metric tons. In Camaçari, Brazil, we have achieved a reduction in steam consumption by optimizing the valve seals and pipeline layout in one plant, avoiding around 6,700 metric tons of CO₂ emissions annually. At the Caojing site in China, the consumption of natural gas in one plant was significantly reduced by making full use of surplus hydrogen from a third-party company and developing a timely signal transmission system for hydrogen supply in collaboration with the supplier. Together, these actions reduce CO₂ emissions by around 9,600 metric tons per year.

Low-emission steam generation

Alongside electricity, steam generation is an important component of our energy supply. In the medium to long term, new technologies should make a significant contribution to reducing CO₂, for example by recovering energy from waste heat in our production and infrastructure facilities. In this context, we are examining various concepts such as using electric heat pumps and e-boilers as well as electrifying steam drives. We have already made initial progress toward low-emission steam generation: In 2024, BASF received funding approval from the German Federal Ministry for Economic Affairs and Climate Action for constructing the world's largest industrial heat pump for emission-free steam generation at its site in Ludwigshafen, Germany. Construction began in 2025. The heat pump will have a capacity of up to 500,000 metric tons of steam per year. The waste heat, which is used as a thermal energy source, is generated during the cooling and cleaning of process gases in one of the two steam crackers at the site. Emission-free steam is generated using electricity from renewable sources and is primarily to be used for producing formic acid. This offers the potential to use the heat pump to reduce CO₂ emissions related to the production by up to 98%. A smaller proportion of the emission-free steam is supplied to other BASF production plants via the steam network at the site. In total, the heat pump, which is scheduled to start operation in 2027, will save up to 100,000 metric tons of CO₂ per year at the company's headquarters. The expansion of the substation at the Ludwigshafen site by the transmission system operator Amprion began in 2025 in order to take account of the future increase in electricity demand due to the electrification of chemical production and energy generation processes, such as low-emission steam generation. Initial partial commissioning is planned from 2029 onward, with overall completion scheduled until 2037.

We are also examining the use of geothermal energy at the Ludwigshafen site as part of a partnership with Vulcan Energy. The results of initial 2D seismic evaluations carried out by our partner in the Vorderpfalz region in spring 2025 confirm the region's geothermal potential. Further measurements, including a 3D seismic evaluation, are planned. Geothermal energy from the Vorderpfalz region could be used by heat pumps to generate emission-free steam. With a potential output of 300 megawatts of thermal energy, around 4 million metric tons of this crucial energy source for the chemical industry could be produced per year. This would avoid roughly 800,000 metric tons of CO₂ emissions. The overarching goal of BASF and Vulcan Energy is to implement the joint geothermal project in the early 2030s.

¹⁸ Relevant sites are selected based on the amount of primary energy used and local energy prices.

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We are also focusing on low-emission steam generation at our site in Schwarzheide, Germany. The goal there is to construct and operate a power-to-heat plant together with transmission systems operator 50Hertz. The plant will convert electricity from renewable sources into process heat. The planned plant consists of a 25-megawatt electrode boiler and is scheduled to start operation at the end of 2026. Another power-to-heat plant is currently being built at the Guaratinguetá site in Brazil. It is scheduled for startup by the end of 2026. The plant will be powered by electricity from renewable energy sources, so that in the future up to 60% of the steam demand on site can be provided with low emissions.

Climate-smart technologies

To further abate CO₂ emissions, we are also developing completely new technologies for emission-free and low-emission production and are planning to scale them as far as possible from 2030 onward. The main focus here is on basic chemicals, which are often still emission-intensive to produce. This is the case with steam crackers, for example, which use high temperatures of 850°C to break down crude petroleum into olefins and aromatics. The high temperatures have until now been achieved by burning natural gas. A heating concept using electricity from renewable sources could reduce process-related emissions by at least 90% in future compared to today's conventional technologies. Together with our partners SABIC and Linde, we are testing this new process on an industrial scale, as well as the associated direct and indirect heating concepts, in a demonstration plant for electrically heated steam cracker furnaces at our site in Ludwigshafen, Germany.¹⁹ The prototype is completely integrated into one of the two existing steam crackers at the site.

One common but emission-intensive way of obtaining hydrogen is steam reforming. We are testing an alternative process – methane pyrolysis – in Ludwigshafen, Germany. This process is virtually emission-free if renewable energy is used and requires considerably less electricity compared with other methods such as water electrolysis. We successfully tested a new reactor concept at the test plant, which was commissioned in 2021, and demonstrated stable operations. In November 2025, we agreed on a collaboration with ExxonMobil to jointly advance methane pyrolysis technology to commercial readiness. In Baytown, Texas, we are planning to construct and operate a joint demonstration plant intended to help validate the technology at scale.

Together with Siemens Energy, we also pressed ahead with the construction of a proton exchange membrane (PEM) water electrolyzer²⁰ with a capacity of 54 megawatts at the Ludwigshafen site in Germany. The plant went into operation in March 2025. Powered by electricity from renewable energy sources, the electrolyzer produces up to 8,000 metric tons of emission-free hydrogen and thus reduces greenhouse gas emissions at the site by up to 72,000 metric tons per year. BASF will primarily use the hydrogen produced as a raw material for the manufacture of products with a reduced PCF. We also agreed a partnership with Envision Energy, a leading provider of sustainable technologies, at the beginning of 2024. The objective is to drive forward the conversion of green hydrogen and CO₂ into e-methanol, as sustainable energy carrier. BASF is contributing its catalyst technologies expertise. In addition, we are expecting new hydrogen applications to emerge in the future, such as its use as an independent or a basic material for sustainable energy carriers, and that demand for hydrogen is likely to increase as a result. Access to large quantities of low-emission or emission-free hydrogen at competitive costs is therefore becoming increasingly important for BASF.

¹⁹ The project has been granted €14.8 million from Germany's Federal Ministry for Economic Affairs and Climate Action (BMWE) under the Decarbonization in Industry funding program. It is also being financed by the European Union via the NextGenerationEU fund.

²⁰ The project is funded by Germany's Federal Ministry for Economic Affairs and Climate Action (BMWE) and the Federal State of Rhineland-Palatinate.

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Another focus area of our technological development is carbon capture and storage (CCS). This technology is expected to be one of the most economically attractive ways to reduce hard to abate emissions in the medium and long term. For this reason we are examining the implementation of CCS plants at various locations worldwide.

Actions along our value chain

As part of our supplier management, we continuously review compliance with our required criteria when selecting suppliers and evaluating supplier relationships. We urge our suppliers to reduce CO_{2} emissions. We arrange for third parties to evaluate suppliers with a high sustainability risk using either on-site audits or sustainability assessments by rating agency EcoVadis. Supplier evaluation is mainly performed as part of the chemical industry's Together for Sustainability initiative. Depending on business requirements, we perform our own Responsible Care audits at selected contract manufacturers if material risks have been identified with respect to environmental protection. This also includes the topic of CO_{2} emissions.

We launched the Supplier CO_{2} Management Program in 2021 to achieve transparency with respect to our raw materials-related emissions. The goal is to obtain a more accurate data base and to better manage and reduce emissions in the supply chain. In a first step, we have since requested the PCFs of our raw materials and support our suppliers in determining these, for example, by sharing our knowledge of valuation and calculation methods with them. After around four years, we have more than 2,200 validated PCFs. This corresponds to a coverage of 40% in relation to the greenhouse gas emissions of our raw materials. We are working to further increase the transparency of the PCFs of our raw materials and thus the quality of the PCFs of our products.

For more information on the Supplier CO_{2} Management Program, see basf.com/suppliers

In addition, we launched the next phase of our Supplier CO_{2} Management Program already in 2024, so as to agree PCF reduction pathways with our suppliers. We use dialog forums to exchange information with suppliers about opportunities, challenges and BASF's specific expectations regarding PCF reductions. One example are the BASF Supplier Days that were held on the topic of Scope 3.1 emissions in 2025 in Houston, Texas for the North America region and in Shanghai, China for the Asia Pacific region. The format had already been rolled out in the Europe and South America regions in 2024. We are also enhancing our purchasing processes and establishing PCFs as a relevant criterion for raw materials in the procurement requirements.

Natural gas -- in particular low-carbon natural gas -- remains a key energy source and raw material for BASF on the path to climate neutrality. In this context, we are focusing on new supply agreements that balance security of supply, flexibility and climate compatibility. In June 2025, BASF and Norwegian energy company Equinor signed a long-term strategic agreement for the annual delivery of up to 23 terawatt hours (around 2 billion cubic meters) of natural gas over a period of ten years. Norwegian natural gas has a carbon footprint less than half the size of the European gas market average, because, among other things, very little methane escapes during its production and processing and predominantly renewable electricity is used. Delivery began on October 1, 2025.

To replace fossil raw materials, we concluded a long-term purchase agreement for certified biomethane with ENGIE in 2024. This is used at our Verbund sites in Antwerp, Belgium, and Ludwigshafen, Germany. Consequently, we are able to reduce the carbon footprint of sales products in sectors such as the automotive, packaging and detergent industries using our mass balance approach (see page 235). In another project with raw material supplier Graphit Kropfmühl, we agreed on an innovative approach to reducing the carbon footprint of its products. We supply the company with Guarantees of Origin for electricity from renewable sources, reducing the PCF of the graphite produced. We then use the graphite as a raw material to reduce the PCF of our insulation material Neopor^{®}. Together with AkzoNobel and Arkema, BASF is working to lower the carbon footprint of architectural powder coatings supplied by AkzoNobel's Interpon brand. To this end, BASF supplies neopentyl glycol (NPG) with a PCF of zero to its

partner Arkema, which in turn transforms the bio-attributed raw materials and thus reduces the carbon footprint of super-durable powder coating resins for AkzoNobel.

In Taiwan, BASF has signed a license agreement with Carbon Cap Applications Technology Co. (CCAT) to provide its OASE^{®} blue gas treatment technology for a carbon capture and storage project at a power plant belonging to the Taiwan Power Company (Taipower) in the Taichung Power Plant Carbon Reduction Technology Park. The project is operated by Taipower and, according to design and planning requirements, is expected to capture 2,000 metric tons of CO_{2} annually. BASF and the ANDRITZ Group have signed a license agreement for the use of OASE^{®} blue in a carbon capture project planned to be implemented in Aarhus, Denmark. The project aims to capture around 435,000 metric tons of CO_{2} annually from the flue gases of a waste-to-energy plant for sequestration. The implementation of the project is contingent upon the customer receiving funding from the Danish CCS fund.

In addition to reducing our raw materials-related emissions (Scope 3.1), we are taking targeted measures to reduce Scope 3 emissions along the entire value chain. To reduce the emissions from transporting our products (Scope 3.9), the Monomers division has developed a shipment emissions dashboard that enables us to share standardized, reliable data on shipment-related emissions with our customers and identify the most sustainable means of transportation. Moreover, we rely on product adaptations to reduce emissions from the use of sold products (Scope 3.11): For example, climate-damaging blowing agents for foaming polyurethane foams can now be largely dispensed within the downstream value chain. Thanks to these and other measures, we have been able to reduce our emissions from the use of sold products (Scope 3.11) by around 75% since 2018.21 We also want to reduce emissions resulting from the disposal of our products (Scope 3.12). This can be done, for example, through the increased use of renewable raw materials or circular solutions (see page 233 onward). Both ensure that less and less CO_{2} pollutes the atmosphere throughout the life cycle of our products.

Our Product Carbon Footprints

In 2025, we further expanded our product portfolio with a certified reduced carbon footprint, for example in aroma ingredients through the market launch of L-menthol FCC rPCF, in ammonia products, or with our Basotect^{®} EcoBalanced melamine resin foam for sound absorption applications in the transportation and construction industries. The Intermediates division has switched its amine portfolio at our BASF sites worldwide to 100% renewable electricity. In 2025, this transition took place at the European Verbund sites in Ludwigshafen and Antwerp, Belgium as well as the Verbund site in Geismar, Louisiana. At BASF's Nanjing site in China, amine production had already switched to renewable electricity in 2023. In addition, we are counting on acrylic monomers produced with electricity from renewable energies that can be used by customers in adhesive products, for example. With biomass-balanced polyethersulfone (PESU), we have been offering our customers a more sustainable alternative in high-performance plastics for industries such as household, automotive, electrics and electronics since the beginning of 2025. We already offer net-zero carbon footprint versions of some of our products, including the polyamide Ultramid^{®} and the HySorb^{®} superabsorbent for the hygiene industry, as Ultramid^{®} ZeroPCF and HySorb^{®} B 6610 ZeroPCF. These lower PCFs are primarily made possible by the substitution of fossil raw materials. For example, we use partially or fully renewable, waste-based or recycled raw materials to produce lowPCF and zeroPCF products. These include castor oil, biomethane or pyrolysis oil from plastic waste. These alternative resources often have a lower carbon footprint compared with fossil raw materials. The alternative resources are allocated to the end product using the mass balance approach (see page 235). Furthermore, we use electricity and steam from renewable sources to reduce our PCFs.

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The digital methodology we have developed to calculate PCFs meets general life cycle analysis standards such as ISO 14040, ISO 14044 and ISO 14067, as well as the Greenhouse Gas Protocol Product Standard. A certification from TÜV Rheinland confirms that our calculation method and our reporting fully comply with the requirements of Together for Sustainability (TfS). We make our automated PCF calculation approach available to interested industry players through partnerships. We are involved in various initiatives to drive transparency, harmonization and standardization across the industry. This also takes place as part of TfS, where we have been involved in the creation and revision of a uniform guideline for calculating the carbon footprint of products in the chemical industry. This enables the climate impacts of products to be directly compared and evaluated based on a standardized approach. Harmonizing the approaches used to calculate PCFs allows us to better steer $\mathrm{CO}_{2}$ emissions that arise during the extraction of raw materials or the manufacture of precursors. A digital solution developed by TfS and Siemens for exchanging PCF data between companies was launched in October 2024. We have fully migrated our queries to this solution since mid-2025. Equally, it has been possible to exchange data within the Catena-X network, in which we work together with partners in the automotive value chain, since 2024.

> For more information on Product Carbon Footprints, see basf.com/en/pcf

Global targets

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As an energy-intensive company that generates and consumes energy in the form of electricity and steam and that processes fossil raw materials, we are responsible for greenhouse gas emissions that negatively impact the climate (see also Impacts, risks and opportunities from our business activities from page 175 onward). We accept this responsibility and are pursuing ambitious climate protection targets.[22]

Scope 1 and 2

Based on the 2018 base year, we want to achieve a $25\%$ reduction in greenhouse gas emissions from our production processes (Scope 1) and our energy purchases (Scope 2) by 2030.[23] Our target focuses on emissions caused by our production and includes $96\%$ of our gross Scope 1 emissions and $99\%$ of our gross Scope 2 emissions. This means that in the period 2018 to 2030 we aim to reduce annual greenhouse gas emissions from 21.9 million metric tons to 16.4 million metric tons – despite our growth plans and the construction of a new Verbund site in southern China. This corresponds to a decrease of around $60\%$ compared with 1990. Our long-term target is to achieve net-zero greenhouse gas emissions by 2050.[23] In line with the requirements of the Greenhouse Gas Protocol, we consider future developments in our Scope 1 and Scope 2 emissions in the event of changes to our corporate structure. When recalculating the emissions from the base year, we have set ourselves a limit of $5\%$ cumulative deviations from the base year.

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Greenhouse gas emissions of the BASF Group (Scope 1 and 2) $^{a}$

million metric tons of $\mathrm{CO}_{2}$ equivalents

a Scope 1 and Scope 2 (excluding the sale of energy to third parties). The target includes greenhouse gases according to the Greenhouse Gas Protocol, which are converted into $\mathrm{CO}{2}$ equivalents $(\mathrm{CO}{2}\mathrm{e})$

In 2025, the BASF Group's emissions from production and energy purchases amounted to 16.1 million metric tons of $\mathrm{CO}{2}$ equivalents (2024: 17.0 million metric tons of $\mathrm{CO}{2}$ equivalents). We further increased the share of electricity from renewable sources to $36\%$ and, together with measures to increase energy and process efficiency, made a relevant contribution to reducing emissions. Furthermore, the decline in demand year on year led to a reduction in production volumes and thus lower $\mathrm{CO}_{2}$ emissions. All in all, we have reduced our greenhouse gas emissions in BASF's operations by $60\%$ since 1990. In the coming year 2026, we expect significant additional emissions from our recently commissioned Verbund site in Zhanjiang, China. These have already been taken into account when setting targets. Our projection of target-relevant Scope 1 and Scope 2 emissions for 2026 can be found in the forecast from page 86 onward.

Scope 3.1

We set ourselves an ambitious Scope 3.1 target $^{24}$ for our specific raw materials-related emissions in 2023. This includes around $92\%$ of our Scope 3.1 emissions based on the base year. By 2030, we want to reduce these in relation to the purchasing volume specifically by $15\%$ from the 2022 base year. In this way, we aim to reduce our specific Scope 3.1 emissions from 1.64 kilograms of $\mathrm{CO}{2}$ per kilogram of purchased raw material in the base year 2022 to 1.39 kilograms of $\mathrm{CO}{2}$ per kilogram of purchased raw material in the target year 2030. Through our commitment, we aim to keep our target-relevant Scope 3.1 emissions at roughly constant 50 million metric tons of $\mathrm{CO}_{2}$ equivalents by 2030 while at the same time growing production.

Raw materials-related emissions from battery materials are initially excluded from the target. Battery materials make a significant contribution to reducing $\mathrm{CO}_{2}$ emissions and thus facilitate the transformation of the transportation sector. Required raw materials such as lithium, nickel and cobalt will not be able to be replaced by more sustainable alternatives in the foreseeable future. Accordingly, associated emissions cannot be reduced significantly in the short term. As soon as recyclable solutions come into play with the increase in available end-of-life batteries, we will include these raw materials in our target definition (for more information on our battery recycling activities, see page 239).

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In the long term, we are striving to reduce Scope 3.1 emissions to an unavoidable minimum by 2050, thereby expanding our long-term net-zero target to include these greenhouse gas emissions.

Greenhouse gas emissions of the BASF Group (Scope 3.1)

a Scope 3.1, raw materials excluding battery materials, excluding services, technical goods and greenhouse gas emissions from BASF trading business

In 2025, specific Scope 3.1 emissions $^{25}$ amounted to 1.62 kilograms of $\mathrm{CO}{2}$ per kilogram of raw materials purchased (2024: 1.58 kilograms of $\mathrm{CO}{2}$ per kilogram of purchased raw material). The increase in specific emissions was mainly attributable to a change in the raw materials portfolio. This was countered by initial purchases from suppliers who offer raw materials with a lower PCF.

We monitor progress toward our targets annually as part of our strategic controlling activities. For an overview of our greenhouse gas emissions – broken down by operational control and financial control – see page 194.

Target setting was preceded by an analysis of expected business developments, external requirements relating to emission reduction targets and internal implementation opportunities, including the use of pilot plants to develop technical solutions. In addition, cost estimates were developed for planned actions. A Supplier $\mathrm{CO}_{2}$ Management Program was established and support was provided for the development of standards such as TfS before the Scope 3.1 target was introduced. This approach was designed to ensure that the targets were not only ambitious but also implementable. We discuss the sustainability topics that are material for BASF at regular meetings with external stakeholders as part of our strategic stakeholder engagement as well as in meetings with investors. In this way, stakeholder expectations are continuously taken into account in the development of strategic approaches, targets and principles of sustainability management.

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Carbon credits

E1-7

As part of the above stated targets, we aim to reduce our Scope 1, 2 and 3.1 emissions to net zero by 2050. Despite all our efforts, we expect there to be a residual share of emissions in 2050 that cannot be abated using technical or economic approaches. We aim to neutralize all remaining emissions elsewhere through measures that are characterized by high quality and credibility. These include nature-based measures such as reforestation, but also technical possibilities such as the long-term storage of originally biogenic carbon. We plan to use ratings from carbon credit rating agencies such as BeZero and Sylvera to assess the quality of carbon credits. We also plan to leverage initiatives such as the Integrity Council for the Voluntary Carbon Market (ICVCM), its Core Carbon Principles, and the credits assessed through them. We are developing internal standards for evaluating climate protection projects and considering whether to develop our own projects. We are also investigating the use/development of a project under the European Carbon Removal and Carbon Farming Certification Framework (CRCF). With these conditions in mind, we anticipate using a portfolio of different credits. Our focus is on credits that meet well-established standards such as Verra or Gold Standard, but also on certificates that are created under Article 6 of the Paris Agreement or that rely on the CRCF. BASF did not use any carbon credits in the past business year.

Metrics

Energy supply

E1-5

Our total energy consumption in 2025 amounted to 74.3 million MWh (2024: 74.8 million MWh).26 Total energy consumption includes fuel demand for our own energy generation and production plants, plus power and steam imports for our own use.

BASF Group's energy consumption and mix

Million MWh		2025		2024
		Financial control	Operational control^{a}	Financial control	Operational control^{a}
Total energy consumption^{b}		74.3	73.5	74.8^{c}	74.1^{c}
Fuel consumption from renewable sources (biomass)		0.0	0.0	0.0	0.0
Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources		5.1	5.2	3.6	3.6
Consumption of self-generated nonfuel renewable energy		0.0	0.0	0.0	0.0
Total energy consumption from renewable sources		5.2	5.2	3.6	3.6
Share of renewable sources in total energy consumption	%	6.9	7.1	4.8	4.9^{c}
Fuel consumption from coal and coal products		1.0	1.0	1.1	1.1
Fuel consumption from crude oil and petroleum products^{c}		0.3	0.4	0.3	0.3
Fuel consumption from natural gas		36.3	35.1	33.7	33.0
Fuel consumption from other fossil sources^{d}		24.3	24.5	27.0^{c}	26.7^{c}
Consumption of purchased or acquired electricity, heat, steam, or cooling from fossil sources		7.2	7.3	9.0	9.3
Total energy consumption from fossil sources		69.1	68.2	71.2^{c}	70.5^{c}
Share of fossil sources in total energy consumption	%	93.0	92.9	95.1^{c}	95.1^{c}

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BASF Group's energy consumption and mix

Million MWh		2025		2024
		Financial control	Operational controla	Financial control	Operational controla
Total energy consumption from nuclear sourcesa		0.0	0.0	0.0	0.0
Share of nuclear sources in total energy consumption	%	0.0	0.0	0.0	0.0
Energy production from renewable sources		0.0	0.0	0.0	0.0
Energy production from fossil sources		43.5	42.9	43.8	43.0
Energy intensity (total energy consumption per sales million MWh/ revenue)f billion €		1.17	1.16	1.15c	1.14c

The generation of our own electricity and steam in highly efficient and predominately natural gas-based combined heat and power plants and our Verbund system (integrated network) are key to a $\mathrm{CO}{2}$ -optimized energy supply at our sites. In the latter, waste heat generated during one plant's production process is used as energy in other plants. Thanks to combined electricity and steam generation and our continuously optimized energy Verbund, we were able to prevent a total of 5.2 million metric tons of $\mathrm{CO}{2}$ emissions[27] in 2025 (2024: 6.1 million metric tons of $\mathrm{CO}_{2}$ emissions) compared with separate, fossil-based electricity and steam generation without the use of the Verbund system.

Corporate carbon footprint

E1-6

BASF has published a comprehensive corporate carbon footprint report every year already since 2008. This reports on all emissions along the value chain – from raw materials extraction to production and disposal. We are continually working to reduce $\mathrm{CO}{2}$ emissions both in our own production and, with our partners, along the value chain (see Strategy and governance from page 177 onward). In 2025, our greenhouse gas emissions according to the Greenhouse Gas Protocol including Scope 1 and Scope $2^{28}$ emissions amounted to 17.270 million metric tons of $\mathrm{CO}{2}$ equivalents (2024: 17.952 million metric tons of $\mathrm{CO}{2}$ equivalents)[29]. Of this amount, $89\%$ were Scope 1 emissions (2024: $87\%$ ) and $11\%$ were Scope 2 emissions (2024: $13\%$ ). Carbon dioxide was the largest component and accounted for $98\%$ of emissions (2024: $98\%$ ). Scope 3 emissions arising upstream and downstream of our operations in the value chain are calculated in accordance with the Corporate Value Chain (Scope 3) Accounting and Reporting Standard published by the Greenhouse Gas Protocol and the WBCSD Guidance for Accounting and Reporting Corporate GHG Emissions in the Chemical Sector Value Chain (WBCSD Chemicals). For 2025, we calculated Scope 3 emissions of around 94 million metric tons of $\mathrm{CO}{2}$ equivalents (2024: 92 million metric tons of $\mathrm{CO}_{2}$ equivalents). The share of emissions that were calculated using primary data[30] amounted to $25\%$ in 2025.

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The largest contribution to emissions along the value chain in 2025 was in category 3.1 (purchased raw materials, technical goods and services) at 53 million metric tons of $\mathrm{CO}{2}$ equivalents (2024: 53 million metric tons of $\mathrm{CO}{2}$ equivalents) $^{31}$ . For the calculation we use primary data from our suppliers from the Supplier $\mathrm{CO}{2}$ Management Program (see page 187), industrial averages and values from external databases $^{32}$ . The disposal of our products (Scope 3.12) accounted for the second-largest share at around 27 million metric tons of $\mathrm{CO}{2}$ equivalents (2024: 26 million metric tons of $\mathrm{CO}_{2}$ equivalents) $^{31}$ (for additional information on the calculation methods for the Scope 3 categories, see page 196).

$\mathrm{CO}_{2}$ emissions along the BASF value chain in 2025a

million metric tons of $\mathrm{CO}_{2}$ equivalents

a According to the Greenhouse Gas Protocol Standard; 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). Downstream leased assets category emissions (Scope 3.13) are already included in Scope 1 and Scope 2 emissions. For this reason, in order to avoid double counting, no additional emissions are reported under this category. The Franchise category (Scope 3.14) is not relevant for BASF because the BASF Group does not operate as a franchisor. Excluding greenhouse gas emissions from BASF trading business.

BASF Group's greenhouse gas emissions according to the Greenhouse Gas Protocol

Million metric tons of CO2 equivalents	2025		Retrospective				Milestones and target years
	Financial control	Operational controlb	2024		Difference 2025/2024		Base year	2030	2050
			Financial control	Operational control	Financial control	Operational control	Financial control	Financial control	Financial control
Scope 1b							2018
CO2 (carbon dioxide)	14.063	13.948	14.402	14.202	-2%	-2%	17.025	-	-
N2O (nitrous oxide)	0.109	0.109	0.176	0.172	-38%	-37%	0.667	-	-
CH3 (methane)	0.023	0.021	0.027	0.023c	-15%	-9%	0.027	-	-
HFCs (hydrofluorocarbons)	0.028	0.028	0.039c	0.038c	-28%	-26%	0.091	-	-
PFCs (perfluorocarbons)	0	0	0	0	0%	0%	0	-	-
SF3 (sulfur hexafluoride)	0.001	0.001	0.001	0.001	0%	0%	0.000	-	-
NF3 (nitrogen trifluoride)	0	0	0	0	0%	0%	0	-	-
Total Scope 1 emissions (production companies)	14.224	14.107	14.645c	14.436c	-3%	-2%	17.810	-	-
Sale of energy to third parties (Scope 1)c	1.060	0.922	0.874	0.746	+21%	+24%	0.773	-	-
Mobile emissions (Scope 1)c	0.048	0.048	-	-	-	-	-	-	-
Scope 1 emissions (nonproduction companies)	0.037	0.038	0.037	0.038	0%	0%	-	-	-
Gross Scope 1 emissions	15.369	15.115	15.556c	15.220c	-1%	-1%	18.583	-	-
Percentage of Scope 1 emissions from regulated emission trading schemesc	67%	67%	66%	66%	+1%	+1%	-	-	-
Scope 2							2018
Scope 2 emissions (nonproduction companies)c	0.044	0.044	0.044	0.044	0%	0%	-	-	-
Location-based Scope 2 emissions (production companies)	3.256	3.408	3.520	3.587	-8%	-5%	3.747	-	-
Market-based Scope 2 emissions (production companies)	1.857	2.008	2.352	2.416	-21%	-17%	4.067	-	-
Gross location-based Scope 2 emissions	3.300	3.452	3.564	3.631	-7%	-5%	3.747	-	-
Gross market-based Scope 2 emissions	1.901	2.052	2.396	2.460	-21%	-17%	4.067	-	-

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BASF Group's greenhouse gas emissions according to the Greenhouse Gas Protocol

	Retrospective					Milestones and target years
			2024		Difference 2025/2024		Base year	2030	2050	Reduction each year on average
Million metric tons of CO2 equivalents	2025	Financial control	2024	Financial control	2024	Operational controla	Financial control	2024	Financial control	2024
	Financial control	Operational controlb	Financial control	Operational controlb	Financial control	Operational controlb	Financial control	Financial control	Financial control	Financial control
Share of electricity consumption by market-based calculationc	51%	53%	46%	47%	+11%	+11%	-	-	-	-
Target-relevant Scope 1 and Scope 2 emissions
Total Scope 1 emissions (production companies)	14.224	-	14.645c	-	-3%	-	17.810	-	-	-
Market-based Scope 2 emissions (production companies)	1.857	-	2.352	-	-21%	-	4.067	-	-	-
Total target-relevant Scope 1 Scope 2 emissions	16.081	-	16.997c	-	-5%	-	21.877	16.4	0	2.1%
Scope 3
Total gross Scope 3 emissions	93.97	96.52	92.33c	94.59c	+2%	+2%	-	-	-	-
1 – Purchased goods and services	52.56	54.39	51.54c	53.33c	+2%	+2%	54.13	-	0	-
2 – Capital goods	1.84	1.82	1.87c	1.83c	-2%	-1%	-	-	-	-
3 – Activities related to fuels and energies (not included in Scope 1 or Scope 2)	2.49	2.52	2.81c	2.78c	-11%	-9%	-	-	-	-
4 – Upstream transportation and distribution	2.37	2.38	2.32	2.32	+2%	+3%	-	-	-	-
5 – Waste generated in operations	0.69	0.69	0.76	0.75	-9%	-8%	-	-	-	-
6 – Business travel	0.09	0.09	0.12	0.12	-25%	-25%	-	-	-	-
7 – Employee commuting	0.20	0.19	0.20	0.20	0%	-5%	-	-	-	-
8 – Upstream leased assets	0.15	0.15	0.15	0.16	0%	-6%	-	-	-	-
9 – Downstream transportation	1.39	1.43	1.49	1.53	-7%	-7%	-	-	-	-
11 – Use of sold products	2.78	2.78	3.01	3.01	-8%	-8%	-	-	-	-
12 – End-of-life treatment of sold products	27.17	27.79	25.67c	26.19c	+6%	+6%	-	-	-	-
15 – Investments	2.24	2.29	2.39c	2.37c	-6%	-3%	-	-	-	-
Total
Total emissions (site-based)	112.64	115.09	111.45c	113.44c	+1%	+1%	-	-	-	-
Total emissions (market-based)	111.24	113.69	110.28c	112.27c	+1%	+1%	-	-	-	-
Other metrics
Biogenic CO2 emissions from the combustion or biodegradation of biomass (Scope 1)c	0.156	0.156	0.140	0.140	+11%	+11%	-	-	-	-
Biogenic Scope 2 emissions from the combustion of biomassc	0.117	0.117	0.053	-	+121%	-	-	-	-	-
Biogenic Scope 3 emissions from the combustion or biodegradation of biomass in the value chainc	1.49	1.49	1.26c	1.26c	18%	18%	-	-	-	-
Offsettinge	0	0	0	0	0%	0%	0	-	-	-
Total emissions (location-based) per sales revenue (million metric tons CO2e/billion €)c	1.777	1.815	1.708c	1.738c	+4%	+4%	-	-	-	-
Total emissions (market-based) per sales revenue (million metric tons CO2e/billion €)c	1.754	1.793	1.690c	1.720c	+4%	+4%	-	-	-	-

a Consolidation after operational control takes account of fully consolidated subsidiaries as well as proportionately included joint operations and joint ventures accounted for using the equity method in which BASF exercises operational control at 100%, regardless of the shareholding. For entities where BASF has only operational but no financial control, the Scope 1 emissions according to this principle amount to 0.078 million metric tons CO2e (2024: 0.068 million metric tons CO2e), location-based Scope 2 emissions amount to 0.253 million metric tons CO2e (2024: 0.250 million metric tons CO2e) and market-based Scope 2 emissions amount to 0.262 million metric tons CO2e (2024: 0.261 million metric tons CO2e). Taking this into account, BASF's gross emissions are as follows: Scope 1: 15.447 million metric tons CO2e (2024: 15.624 million metric tons CO2e), Scope 2 location-based: 3.553 million metric tons CO2e (2024: 3.814 million metric tons CO2e), Scope 2 market-based: 2.163 million metric tons CO2e (2024: 2.657 million metric tons CO2e).
b Emissions of N2O, CH4, SF6 and NF3 are converted into CO2 emissions using the global warming potential (GWP) factor. GWP factors are based on the Intergovernmental Panel on Climate Change (IPCC) 2007, Errata table 2012 for the reporting year 2018, and IPCC 2014 for the reporting years 2024 and 2025, in line with the requirements of the EU ETS methodology. HFCs (hydrofluorocarbons) and PFCs (perfluorocarbons) are calculated using the GWP factors for their individual components.
c The comparative figure for 2024 has been adjusted to reflect updated data. This may also include methodological adjustments.
d Includes sales to BASF Group companies; as a result, emissions reported under Scope 2 can be considered twice in some cases.
e In 2025, BASF optimized the transport costs for raw materials through time charter activities, which are reportable under Scope 1 in accordance with the Greenhouse Gas Protocol standard.
The emissions trading schemes from the following states/unions of states were used in the calculation: China, Germany, Europe, Shanghai, Switzerland, South Korea. Information subject to official review, which had not yet been completed at the time of the editorial deadline.
The emissions are estimated on the basis of location-based emission factors, since no information on market-based factors is available.
h The market- and location-based concept is applied exclusively to electricity.
i The biogenic emissions are disclosed separately in accordance with the Greenhouse Gas Protocol Standard.
j Only biogenic emissions from categories 3.11 and 3.12 are included in the calculation. We do not have any information about other biogenic emissions along our value chain.
k Offsetting relates to carbon credits utilized in the reporting year.
The sales revenue used to calculate the GHG intensity corresponds to the sales revenue in the report on the Results of Operations (see page 48), including the discontinued coatings business. For the sales revenue of the discontinued coatings business, see Note 3 to the Consolidated Financial Statements on page 323.

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BASF reports its Scope 2 emissions using the market-based approach in accordance with the Greenhouse Gas Protocol. In 2025, the share of total electricity consumption determined in accordance with the market-based approach was 50.9%. Contractual instruments such as energy attribute certificates (Guarantees of Origin, I-RECs), also in the form of power purchase agreements, local contracts to source renewable energy and supplier-specific electricity labels are used for this purpose.

Information on methodologies, significant assumptions, factors and calculation tools that are used to calculate direct greenhouse gas emissions can be found among other places in the General Disclosures chapter of the (Consolidated) Sustainability Statement from page 149 onward. We use emission factors from reports from the RWI – Leibniz Institute for Economic Research, the German Environment Agency and the U.S. Department of Energy, as well as supplier-specific emission factors, to calculate Scope 1 emissions resulting from the energetic use of primary energy carriers. We use supplier data where possible to calculate our market-based Scope 2 emissions. Where such data is not available, we rely on country-specific residual mix and grid-average emission factors respectively. In this case we use information from the International Energy Agency and the United States Environmental Protection Agency, among other sources. When calculating our Scope 3 emissions, we prefer to use primary data in particular for category 3.1. In the case of secondary data, we rely on leading life cycle analysis databases. The following table explains the calculation approaches used for the individual Scope 3 categories.

Calculation methodologies for Scope 3 categories

Scope 3 category		Calculation methodology
1	Purchased goods and services	Greenhouse gas emissions from purchased chemical raw materials are calculated by multiplying the incoming volumes by cradle-to-gate emission factors. The emission factors used are either supplier-specific or regional and technology-specific values drawn from databases (industry association data, Sphera MLC, ecoinvent, etc.). Missing emission factors are estimated using internal data models or average values of similar chemicals. Emissions from packaging are calculated by multiplying the quantity of packaging purchased within a packaging group by the respective cradle-to-gate emission factor – determined on the basis of the average material composition per packaging group. Greenhouse gas emissions from technical goods and services are calculated on the basis of the monetary purchasing volume in the reporting year by multiplying expenditure (adjusted for inflation and including VAT) by the expenditure-based emission factors from DEFRA (United Kingdom Government’s Department for Environment, Food and Rural Affairs).
2	Capital goods	Greenhouse gas emissions from purchased capital goods are estimated as follows: All subareas of global technical procurement related to the procurement of capital goods are analyzed based on their monetary purchasing volume in the reporting year. Each subarea is assigned a corresponding SIC code (SIC: Standard Industrial Classification), as the expenditure-based emission factors from DEFRA are based on the SIC standard classification system. Expenditure, adjusted for inflation and including VAT, is then multiplied by the respective emission factor and added to the resulting products to calculate the total greenhouse gas emissions from capital goods.
3	Activities related to fuels and energies (not included in Scope 1 or Scope 2)	Fuel used by BASF and purchased volumes of electricity and steam are captured annually in an internal EHS database. Either supplier-specific or representative, region-specific emission factors from the Sphera MLC database are used to calculate the greenhouse gas emissions from the extraction, production and transportation of fossil fuels used to generate electricity and steam in BASF’s own power plants. The fuels used to generate purchased electricity and steam are determined either using regional statistics or site-specific values, after which the emissions are calculated in the same way as for purchased fuels. A conversion efficiency of 37% for electricity and 82.5% for steam is assumed. Greenhouse gas emissions associated with losses of purchased electricity and steam are estimated based on Scope 2 emissions and a grid-based loss factor.

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Calculation methodologies for Scope 3 categories

Scope 3 category		Calculation methodology
4	Upstream transportation and distribution	Greenhouse gas emissions from the transportation of raw materials purchased by BASF in the reporting year are calculated by multiplying the product volumes by the respective transport distance and a corresponding emission factor. For high-volume raw materials, the means of transport and distances are specifically recorded, while an estimate is made for other raw materials. A survey conducted by the European Chemical Industry Council (CEFIC) is used for this purpose in Europe, while in other regions road transport is generally assumed. Internal transportation is calculated using the EcoTransIT World (ETW) tool. Greenhouse gas emissions from the transportation of technical goods and capital goods are determined on the basis of estimated weights and material compositions. Road transport is also assumed as the sole method for the transportation of technical goods.
5	Waste generated in operations	When determining greenhouse gas emissions from waste disposal, a distinction is made between solid waste and wastewater as well as between different disposal routes. Greenhouse gas emissions from external waste incineration with energy recovery and from recycling are assessed using the cut-off approach. Emissions from incineration without energy recovery and landfill are calculated using a carbon balance, assuming that all carbon is converted to CO2 and no methane emissions are released in landfill. CO2 emissions from wastewater are calculated on the basis of experts' estimates from the carbon content of the wastewater. Potential nitrous oxide emissions are not taken into consideration. In the case of sewage sludge treatment, only disposal via incineration and the resulting CO2 emissions are included, assuming that the sewage sludge is not sent to landfill and therefore no methane emissions arise.
6	Business travel	Greenhouse gas emissions from business travel are recorded and calculated by the travel agents and mobility service providers commissioned by BASF. In a small number of cases, such as car rental companies, greenhouse gas emissions are determined directly on the basis of activity data using the emission factors from DEFRA (United Kingdom Government's Department for Environment, Food and Rural Affairs).
7	Employee commuting	Emissions are determined on the basis of a survey of BASF SE employees' commuting patterns and then estimated on this basis for all employees in Europe. For the remaining BASF regions, we use statistical data on the commuting patterns of employees. We use DEFRA and EPA (U.S. Environmental Protection Agency) carrier-specific cradle-to-gate emission factors in our calculations.
8	Upstream leased assets	This category comprises leased cars, leased office and storage space and leased equipment. Emissions from leased cars are calculated by multiplying the contractually stipulated kilometers by the relevant DEFRA emission factor, based on drive system and engine size. Since data availability varies, global emissions are extrapolated on the basis of BASF SE data and the number of staff. Greenhouse gas emissions from leased office and storage space are already covered by Scope 1 and Scope 2 emissions, if the building or warehouse is located on one of our production sites. Greenhouse gas emissions for the remaining leased office and storage space are determined on the basis of the leased space and the annual energy consumption of the relevant leased property (office or warehouse). Electricity consumption for servers leased by BASF that are not operated at our sites is provided by the relevant provider. Greenhouse gas emissions are calculated from this information using a site-specific emissions factor.
9	Downstream transportation	Greenhouse gas emissions from BASF's freight transports are calculated as well-to-wheel (WtW) emissions using the ETW IT solution, drawing on transportation data from BASF's ERP system.
11	Use of sold products	This category comprises direct emissions from BASF sales products' use phase. These are products that release or form greenhouse gas emissions when used by end users. These include nitrogenous fertilizers that release nitrous oxide (N2O) through microbial activity in the soil, urea or additives for the automotive industry, residual fuels for generating energy or carbonates used in the food industry. Other products that contain and release greenhouse gas emissions include dry ice, CO2 as a gas for the beverage industry, and HFCs as a propellant for the production of polyurethane foam. We use our own sales volume data and product-specific emission factors to calculate the emissions.

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Scope 3 category

Calculation methodology

12 End-of-life treatment of sold products

Sales volumes and the carbon content of BASF’s sales products are used to calculate the emissions from the disposal of BASF products at the end of their life. It is assumed that the products are disposed of in the regions in which they were sold. Regional differences in disposal routes are taken into account. The annual shares of the different disposal routes for municipal waste are taken from the following sources: Eurostat, OECDStat, China Statistical Yearbook and, where necessary, other country-specific statistics. In the case of disposal by incineration or landfill, it is assumed that all the carbon contained in the product is ultimately emitted as CO₂. In the case of disposal by incineration with energy recovery, 50% of the emissions from combustion are attributed to the energy generated via a burden-sharing approach. Greenhouse gas emissions from the recycling of waste are assessed using the cut-off approach of life cycle analysis.

15 Investments

This category includes the Scope 1 and Scope 2 emissions of joint ventures and associated companies that are accounted for using the equity method and are not included in the BASF Group’s Scope 1 and Scope 2 emissions. The emissions of these companies are recorded directly using a database query or taken from publicly available emission reports.

Internal carbon pricing

E1-8

We use scenario-dependent price projections to factor in the costs of CO₂ emissions when assessing investment projects. In addition, these prices can also be used to evaluate research projects and to determine benchmarks. The prices differ for Europe, Asia and North America and represent the expected developments in these economic areas in the decades up to 2050. In view of the different ways in which the global economy could potentially develop, BASF currently uses three different scenarios (for more information on the scenarios, see page 174), which are also used to analyze transition risks. The fundamental drivers for the scenarios are influential geopolitical actors and their various interests, different societal preferences and, building on these, climate and economic policy objectives. The result is a price per metric ton of CO₂ equivalents of up to €365, depending on the year. This is used for all Scope 1 emissions caused by investments (capex) by our companies worldwide, and is included in the cost calculations. Scope 1 and Scope 2 emissions are also taken into account in the context of our target achievement. As a result, the emissions caused or reduced are directly included in the decision-making process. This favors investments in low-emission measures and measures that contribute to reducing emissions.

Since the investments will be made in the future, they are not included in the reported emissions for the business year. Consequently, the Scope 1, Scope 2 and Scope 3 emissions for the current year covered by shadow prices amount to 0 metric tons of CO₂ equivalents in each case. The CO₂ prices used in the Consolidated Financial Statements differ from the shadow prices described. Instead, external forecasts for CO₂ prices and spot prices are used, as these enable an objective assessment on the reporting date and satisfy IFRS requirements.

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E2 Pollution Prevention

ESRS E2

We work continuously to reduce environmental impacts caused by our business activities. This includes reducing or preventing emissions to air and water, which we achieve first and foremost by operating our plants safely and efficiently. We are also committed to our responsibility for environmental protection throughout the entire value chain in order to minimize the impacts on air and water. In addition, we develop product solutions for our customers that enable them to reduce emissions.

ESRS 2 IRO-1

As part of our double materiality assessment (see page 163), the topic Environment was identified as material. In particular, the assessment identified emissions to air and water as relevant subtopics for the business activities of BASF. Emissions to air in the form of air pollutants, such as nitrogen oxides and ammonia, are produced in connection with energy generation and in our production processes. We use water as a coolant, solvent and cleaning agent as well as to make our products. We utilize waterways for the purpose of transporting goods. Most of the water used at our production sites is purified and largely reused multiple times, before being discharged as wastewater. Organic substances and heavy metals, for instance, are thus emitted.

Our double materiality assessment indicates three material impacts on the environment and two material risks for BASF (see table Results of double materiality assessment).

Results of the double materiality assessment for E2 Pollution Prevention: Impacts

Impact	Evaluation	Position in the value chain	Description
Regular emissions to air (excluding greenhouse gases; GHG)	Negative	BASF's own operations; upstream and downstream value chain	Emissions to air (excluding GHG), such as nitrogen oxides, particulate matter and volatile organic compounds (VOCs), are generated in connection with the procurement, production, use and disposal of our products. These emissions contribute to air pollution.
Regular emissions to water	Negative	BASF's own operations; upstream and downstream value chain	Emissions to water, such as nitrogen compounds, organic substances and heavy metals, are generated in connection with the procurement, production, use and disposal of our products. These emissions contribute to water pollution.
Impact on human health and the environment of substances of (very high) concern	Negative, potential	Downstream value chain	Due to the sale of products containing substances of concern or of very high concern, irresponsible and improper handling of these products in the downstream value chain could result in water or soil pollution or to an adverse impact on the environment or human health.

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Results of the double materiality assessment for E2 Pollution Prevention: Risks and opportunities

Risk	Evaluation	Description
Increased costs for water treatment due to regulatory changes	Negative	Regulatory developments concerning emissions to water may require investments in our infrastructure and upgrades of our systems.
Consequences of regulations with respect to substances of (very high) concern for procurement, sale or production	Negative	Regulatory changes on substances of concern or of very high concern, such as their restriction, may limit the availability of relevant raw materials and negatively impact market behavior and customer acceptance.

We systematically record all short and long-term opportunities and risks linked to environmental impacts as part of our general opportunity and risk management (for additional information, see page 90 onward).

As the basis for the double materiality assessment, we considered all BASF sites for our own operations. Emissions to air and water are systematically documented and reviewed in a Group-wide database. Pollutant-related impacts are assessed and documented continuously as part of permitting requirements. In addition, the screening of new sites includes environmental impact assessments by independent third parties. As part of internal approval processes, risks associated with environmental impacts are assessed and documented in an environmental statement. When assessing the upstream and downstream value chain, we are aware of the risks associated with the production and handling of chemical substances and draw on our own experience.

We aim to even better understand our impact on our environment in terms of emissions to air and water and to include the perspectives of surrounding communities in our decision-making and doing. We are therefore committed to dialog based on a spirit of trust and maintain close relations with surrounding communities at our BASF production sites. We provide information on the topic of emissions to air and water, issue updates on the latest developments, set up hotlines for immediate contact and availability as well as hosting community advisory panels where concerns about environmental impacts, such as emissions to air and water, can be voiced (see also page 280). The Civil Society Forum, founded in 2024, provides space for confidential exchange with representatives of the civil society and trade union spectrum (for more information, see page 160). Among others, the topic emissions to water has also been discussed there. In addition, we participate in dialog forums and advisory councils, such as our Nature Advisory Council, which we established together with external specialists, where we discuss topics related to nature and biodiversity (for more information, see page 160).

» For more information on the BASF Nature Advisory Council, see basf.com/en/nature-advisory-council

Strategy and governance

E2-1

General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). These include, among other things, our Responsible Care Management System and, as part of this, our global standards in terms of environmental protection, process safety, product safety and transportation safety as well as emergency and crisis management. BASF's Position on Water Protection, our risk-based sustainability management for procurement and the Supplier Code of Conduct can also be found there. The specific aspects of these policies are explained in the following section.

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When developing our business strategies, we also consider the resilience of our business models (for more information, see Double Materiality Assessment from page 165 onward).

Environmental protection in our production

BASF intends to continue to drive forward the transformation of its production and its product portfolio. In order to prevent or reduce negative environmental impacts due to regular emissions to air and water, as well as due to potential product spills, a holistic approach is needed to ensure efficient and resource-saving production and continuous monitoring to protect the environment.

We aim to further reduce emissions to air from our production by means of process improvements and new technologies. Similarly, we strive to reduce negative impacts on water quality as part of responsible handling of water as a resource and sustainable water management. This is also reflected in our position paper on water protection.

> For more information on our position paper on water protection, see basf.com/water

Responsible Care Management System

We have established Group-wide management and control systems for our own production. BASF is involved in the International Council of Chemical Associations' (ICCA) global Responsible Care® initiative. Our Responsible Care Management System, which is based on this, also covers environmental protection in addition to the topics of safety and health (see chapter S1 Own Workforce from page 251 onward for more). We have defined our global standards for emissions to air and water in Group-wide requirements. These requirements apply to substances that have a potentially harmful impact on the environment and also cover the aspects of process and transportation safety in order to prevent production and transportation-related product spills and leakages into air and water as effectively as possible (for more information, see page 202 onward and page 208). For example, these stipulate that water protection concepts must be implemented at all production sites in order to prevent unforeseen emissions and the pollution of surface or ground water.

The Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality defines the management and control systems and monitors compliance with internal and legal requirements, while the sites and Group companies are responsible for the implementation of and the compliance with the requirements locally. We continuously update our requirements and guidelines, which can be accessed via an internal BASF database. To this end, we exchange information with authorities, associations and international organizations. We also share information, experiences and practical examples in the global BASF network of experts.

Continuous monitoring, documentation and control of emissions to air and water as well as the implementation of measures for improvement are an integral part of our environmental management and at the same time serve to evaluate the effectiveness of our policies and actions. The key figures for process safety incidents with significant environmental impacts and transportation incidents with significant environmental impacts are also an important indicator of the effectiveness of our policies and actions (for more information, see page 208). The Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality regularly reviews our performance and progress, and hence the effectiveness of our requirements in the areas of environmental protection and safety as well as health, in the course of Responsible Care audits (for Responsible Care audits in the field of occupational medicine, see chapter S1 Own Workforce on page 260), for example in the areas of Organization & Management System, Product Stewardship, Transportation Safety, Process Safety, Environment (Air, Water, Waste) or Emergency Response. The 130 audits performed in 2025 (2024: 121) primarily served to systematically assess risks and monitor the correct implementation of legal and internal requirements – both globally and locally. The regularity of the audits contributes to ensuring uniformly high standards of environmental protection and safety within the BASF Group.

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The regulations on which Responsible Care audits are based are also bindingly set out in a global requirement. The audits are conducted at regular intervals of every three to six years at all BASF sites, as well as at companies with BASF majority shareholdings that operate production facilities. They are based on a risk-based approach that ensures that particularly critical areas are audited in a targeted and appropriate manner. A central database secures global coverage and the transparent traceability of all audits. As part of the audits, we create an environmental and safety profile that shows whether the existing environmental and safety performance is sufficient to properly address the existing hazard potential. If deficiencies are identified, we define binding corrective measures, the implementation of which takes place within a defined time frame and is reviewed in follow-up audits. In addition to production sites and plants, the audit process also includes laboratory units, infrastructure units and larger workshops.

Regulatory developments

Our emissions to air and wastewater are subject to stringent controls. We assess their impact carefully and in compliance with applicable laws and regulations. In this context, we evaluate whether regulatory developments concerning emissions to air and water require investments in our infrastructure and the further development of our systems. The chemical industry is facing substantial risks due to changes to and reforms of regulatory requirements or approval conditions, including in relation to the areas of environmental protection, biodiversity and ecosystems. More stringent regulations may limit the approval, use or marketing of certain chemicals. BASF plans to address regulatory changes with a combination of proactive and reactive measures. These include continuous monitoring, analysis of the regulatory framework and steering of our product portfolio using the TripleS method (Sustainable Solution Steering; see page 157). We also invest in research and development in order to continuously develop chemicals with improved toxicological and ecotoxicological properties and to thus meet the new requirements. Moreover, BASF is committed to working closely with stakeholders and regulatory bodies to ensure that company practices comply with the latest standards.

Process, product and transportation safety

In particular, the reliable and safe operation of our plants represents a key element of our Responsible Care Management System. In the area of process safety, we take extensive preventive measures in order to counteract incidents at our plants and continuously improve our production processes. Opportunities arise in particular in the automation and digitalization of processes.

The topic categories of product and transportation safety, emergency response and remediation of contaminated sites also form part of our Responsible Care Management System. With comprehensive safety concepts and globally binding standards and requirements, we aim to prevent resulting environmental damage to the best extent possible. Here, we rely on comprehensive preventive measures and clearly defined responsibilities. We also continuously further develop our production and logistics processes as well as our product stewardship approaches.

As a chemical company, we also transport dangerous goods. We want to ensure that our products are loaded, transported and handled in accordance with the relevant regulations and their hazard potential, thereby minimizing the risk along the entire transportation chain. To this end, the managers responsible and their employees are regularly trained, advised and supervised by our transportation safety experts, and the reliability of logistics partners is regularly reviewed. All BASF products intended for transportation must be clearly identifiable, classified, securely packaged and labeled.

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Should a crisis situation, however, be caused by process safety incidents, product spillages or emergencies, we wish to be as well prepared as possible at global, regional and local level. We have established structures and processes for emergency preparedness and emergency response that enable an effective response. Our emergency and crisis management focuses on the protection of our employees, contractors and neighbors, the safety of our plants and the protection of the environment. Unusual incidents are recorded and reported centrally in accordance with a standardized Group-wide procedure. The aim is to identify risks at an early stage and, if necessary, initiate appropriate remedial and communication measures. Incidents are followed up on to identify potential for improvement, which is integrated into existing concepts as needed.

In order to reduce the impact of our activities on the environment, we continuously invest in process, product and transportation safety. By means of Responsible Care audits in the areas of Organization & Management System, Product Stewardship, Transportation Safety, Process Safety, Environment (Air, Water, Waste) and Emergency Response, we are able to verify compliance with our policies and requirements. We also establish appropriate provisions for environmental protection measures, including provisions for the remediation of contamination at our sites (for additional information, see Note 22 to the Consolidated Financial Statements on page 385).

Contamination exists at former and active sites, and/or at sites for which we have taken on responsibility in connection with acquisitions. It is our principle to manage these contaminated sites in close consultation with the responsible authorities in such a way that no negative impacts arise on the environment. We develop remediation solutions that aim to balance nature conservation and climate protection concerns, costs and social responsibility. These site and case-specific measures take into account the legal frameworks and currently available technology. We document contamination risks and the status of soil and groundwater for our sites worldwide in a database. Ongoing remediation work continued on schedule in the reporting year and planning was completed for further measures.

In order to minimize the impact of substances of concern and substances of very high concern on human health and the environment in the downstream value chain, such substances are used in accordance with statutory requirements, such as the EU's REACH regulation. In addition, our TripleS method for steering the sustainability performance of our product portfolio (see page 157) takes into account substances of concern and of very high concern with respect to proactive portfolio and substitution planning.

For more information on substances of concern or of very high concern, as well as their potential impact on human health and the environment, see Substances of concern or of very high concern from page 210 onward.

Responsibility in our value chain

We are also committed to our responsibility for environmental protection throughout our entire value chain in order to reduce the impacts of emissions to air and water. Alongside production at our plants and the activities at our sites and warehouses, this also applies to the procurement and transport of our raw materials as well as the distribution and usage of our products.

Upstream value chain

For our upstream value chain, our procurement organization has established guidelines in a global risk-based management system that define how we implement our due diligence processes (see page 267). In the event of specific incidents in this context, our management processes come into effect (see page 269 and 273). We expect our suppliers to comply with internationally recognized environmental standards. In addition, we call for our suppliers to reduce regular emissions to air and water and to prevent product spills in upstream processing. Our expectations are set out in the globally valid Supplier Code of Conduct (see page 267), which also includes emissions to air and water. We strive toward a situation where our suppliers comply with the requirements set out in the Supplier Code of Conduct.

BASF Report 2025
(Consolidated) Sustainability Statement

As part of our supplier management, we therefore review compliance with our required criteria when selecting suppliers and evaluating supplier relationships. We arrange for third parties to evaluate suppliers with a high sustainability risk. Supplier evaluation is mainly performed as part of the chemical industry's Together for Sustainability (TfS) initiative (see page 269). Depending on business requirements, we perform our own Responsible Care audits at selected contract manufacturers if material risks have been identified with respect to environmental protection. This also includes the topic of emissions to air and water.

Downstream value chain

In our downstream value chain, we want to collaborate continuously with our customers on the development of innovations and solutions that are designed to enable their green transformation and make a significant contribution to sustainability (for more information on the TripleS methodology, see from page 157 onward). We offer our customers a wide range of products that enable them to reduce regular emissions to air or water, from industrial process catalysts and fuel additives to precursors used to produce coagulants for water treatment.

We have also established relevant global management systems in our downstream value chain. We address the safe handling and application of chemical raw materials and products as part of our product and transportation safety management, for example. BASF regards product stewardship as an integral component of all business processes, as a key element of our risk management and as a vital pillar of our commitment to Responsible Care^{®}. We aim to continuously minimize negative impacts on people and the environment and to improve the safety and sustainability of our products on an ongoing basis.

Before our products are launched on the market, they undergo various tests and evaluations -- depending on legal requirements and their application profile. These tests enable us to identify potential hazard characteristics as well as health and environmental risks at an early stage. On the basis of the results, we devise precautionary and protective measures and develop recommendations for safe handling -- from production to application through to transportation and disposal.

By consistently implementing external and internal requirements, we also aim to ensure in the downstream value chain that our customers receive their goods in harmless condition as well as in safe packaging and transport containers. To this end, we rely on the qualified selection, approval and clear labeling of packaging and transport containers as well as the accompanying transport documents and multiple checks. We communicate product safety information via our safety data sheets. These contain, for example, information on the physicochemical, toxicological and ecotoxicological properties of our products, as well as on potential hazards, first aid measures, measures to be taken in the case of accidental release and disposal, and on safe handling. We thereby wish to contribute to the prevention of leakages and emergencies and to mitigating and limiting their impacts. Should emergencies occur, nonetheless, we provide our customers with the support of our expert network.

Our actions for avoiding and minimizing environmental pollution often entail decentralized activities, projects and initiatives. They are not governed by a centrally managed action plan. Instead, they -- like our management and monitoring systems -- aim to ensure continuous optimization and further development and fall within the responsibility of the sites and Group companies. This goes hand in hand with the BASF approach to sustainability steering (see also page 150).

Actions in our own production

Our activities for avoiding and minimizing environmental impacts due to emissions to air and water take effect right at the start of the product life cycle: We invest continuously in research and development (for additional information, see from page 41 onward) in order to design products in such a way that their impacts on the environment are as minimal as possible. Drawing on TripleS, we review our relevant global product portfolio continuously (for more information, see page 157). Moreover, we evaluate the effectiveness of our actions as part of our Responsible Care audits (see also page 201).

Through our focus on operational excellence (see also page 185), we continuously design our plants and processes to be more efficient and resource-saving. This creates direct incentives for investing in efficiency projects and contributes to reducing emissions. Corresponding projects address all levels of the mitigation hierarchy: prevent, reduce, recover and reuse, restore and regenerate. We therefore further reduce regular emissions to the air through various actions, such as lowering the emission of nitrogen oxides using catalysts, and feed waste gases back to the production process.

Also when it comes to emissions to water, our approach is to reduce wastewater volumes and contaminant loads at the source in our production processes and to reuse wastewater and material flows internally as far as possible. To treat wastewater, we use both central measures in wastewater treatment plants and the selective pretreatment of individual wastewater streams already before these are sent to the wastewater treatment plant. We use different methods depending on the type and degree of contamination -- including biological processes, chemical oxidation, membrane technologies, precipitation or adsorption. At our Verbund site in Freeport, Texas, we commissioned a membrane bioreactor for treating wastewater in 2023, which improved the capacity and cleaning performance of the wastewater treatment plant. In the medium term, the treated wastewater is to be reused, thereby reducing the need for freshwater. In 2025, the first phase of the test operation for reusage took place. Depending on the local situation, we also implement actions together with other stakeholders. For example, at the Tarragona site in Spain, we are working with our water supplier AITASA and other companies to further expand wastewater reuse in the medium term. As part of our water protection concepts, we regularly conduct risk assessments of our wastewater, evaluate it in terms of its risks and derive suitable monitoring measures.

Process safety

In order to take preventive action against environmental impacts due to potential product spills and leakages, we apply demanding safety standards worldwide when planning, building and operating our plants. These meet and, in some cases, go beyond local legal requirements. Our experts develop a safety concept for every plant that takes into account the key safety, occupational health as well as environmental protection aspects -- from plant design to the end of production -- and stipulates corresponding protective measures. In order to maintain the high level of safety at our plants worldwide over their entire life cycles, we carry out implementation checks at regular intervals and dependent on the risk potential to verify the implementation of our safety concepts. We regularly update the safety and protection concepts of our plants. Here, we particularly take new findings, technological opportunities and regulatory developments into account.

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To reduce process safety incidents, we focus in particular on technical measures, digital solutions and a leadership culture that places even greater focus on process safety and dealing openly with mistakes. We use the rate of High Severity Process Safety Incidents (hsPSI) per 200,000 working hours as a reporting indicator (for information on the external validation of metrics, see General Disclosures on page 149). By 2030, we aim for a rate of no more than 0.10 High Severity Process Safety Incidents per 200,000 working hours worldwide.¹ In 2025, we recorded a global rate of 0.04 hsPSI per 200,000 working hours (2024: 0.03). The rate of Process Safety Incidents (PSI rate; number of Process Safety Incidents per 200,000 working hours) was 0.22 in 2025 (2024: 0.22). We are continuously refining our training methods and offerings to increase risk awareness and strengthen our safety culture. In order to further strengthen the topic of operational excellence in the areas of environmental protection, health, safety and quality (EHSQ), BASF hosted the Global EHSQ Days for all employees worldwide in September 2025. The virtual event aimed to raise awareness of key topics such as process safety, occupational safety, emergency and crisis management and environmental protection, to promote company-wide dialog and to disseminate best practices throughout the Group. The Global EHSQ Days thus also underlined BASF's commitment to transparency, continuous learning, persistent improvement and an open safety culture. The focus of the process safety area was on the concept of Inherently Safer Design (ISD) – a central principle that aims to systematically avoid potential hazards already during the design process instead of controlling them retrospectively through technical or organizational protective measures.

In order to maintain a mutual exchange with their teams on topics related to process safety, leaders have various options, including short discussions on selected process safety topics or the presentation of incident investigations. In internal and external networks, through our involvement in associations such as the ICCA, the European Process Safety Centre (EPSC) and the Center for Chemical Process Safety (CCPS), as well as through our dialog with authorities, we make a continuous contribution to improving process safety worldwide.

In the event of incidents, such as process safety incidents, their handling initially falls within the remit of local crisis organizations and/or local emergency response. We have implemented precautionary organizational measures with clearly defined responsibilities and procedures at all sites for this purpose. The employees responsible receive regular training. This includes safety and emergency drills, which may vary in scope and participation depending on the scenario. Depending on the situation, external stakeholders such as business partners, municipal institutions or neighboring companies are also involved, both in drills and in the event of an emergency. Additional expert teams (working groups) may be called in for emergencies, depending on the development of the damage extent. In the event of a global crisis situation, the Global Crisis Management Support Team (GCMS), led by a member of the Board of Executive Directors, is activated. It defines the strategic direction for crisis management and is supported by topic-specific and specialist working groups. The effectiveness and quality of the actions are continuously improved and reviewed through established control mechanisms such as incident investigations, as well as through systematic learning from incidents and Responsible Care audits. At the Ludwigshafen site, BASF began construction of a new Emergency Response Center (ERC) in 2025. Following completion, which is planned for 2028, employees from the site fire department, environmental monitoring and site security units as well as the fully integrated control center will work there.

¹ Includes BASF employees, agency workers and contractors

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Transportation safety

We use a range of tools to minimize transportation risks, such as impacts on the environment due to potential product leakages. For every dangerous good, we verify whether the packaging has been approved for that product and is suitable for the type of transport. We conduct digital dangerous goods checks before shipping orders are released. Vehicles are subjected to a thorough dangerous goods check prior to loading and rejected if there are any issues. Above and beyond this, we use our global requirements to specifically assess the safety and environmental risks of transporting and handling raw materials and sales products with high hazard potential. This is based on the guideline Safety Risk Assessment for Chemical Transport Operations of the European Chemical Industry Council (CEFIC). We stipulate worldwide requirements for our logistics service providers and assess them in terms of safety and quality. Our experts use our own tools as well as internationally approved schemes for evaluation and monitoring. These include, in the area of ship safety inspection, the templates issued by the Chemical Distribution Institute (CDI) and the Oil Companies International Marine Forum (OCIMF). We remain involved in external networks, which quickly provide information and assistance in emergencies. These include the Intervention in Chemical transport Emergencies (ICE) initiative and the German Transport-Accident-Information and Emergency-Response-System (TUIS), in which BASF plays a coordinating role. We apply the experience we have gathered in the course of this involvement to improve our own processes and set up similar systems in other countries.

Actions in the value chain

We are committed to minimizing the impacts of emissions to air and water throughout our entire value chain. To this end, we work together with our suppliers and numerous partners. Ongoing initiatives serve the purpose of continuous optimization and further development.

Upstream value chain

In the upstream value chain, we take a closer look at suppliers in critical supply chains, such as those for mineral and renewable raw materials and a range of pigments, using a risk-based approach. Upstream stages of the value chain are evaluated in respect of serious sustainability risks, with suitable remedial measures instigated where necessary (see page 269 and 273). In shared initiatives with suppliers and other partners, we also develop and test approaches to making the supply of raw materials more sustainable.

We are constantly working to switch to more sustainable raw material alternatives and to reduce the resources consumed in the manufacturing of our products, for example through more efficient processes and innovative technologies. This also enables us to provide our customers in the downstream value chain with more sustainable solutions and reduce emissions.

Downstream value chain

With TripleS, we have established a steering tool for our product portfolio based on the sustainability performance of our products (for more information, see page 157). Criteria for mitigating environmental impacts, such as reducing emissions to air and water or new approaches to water purification, also form part of the evaluation process.

For more information on TripleS, see basf.com/en/sustainable-solution-steering

Together with partners and in dialog with stakeholders in the food value chain, we continuously drive projects aimed at promoting more sustainable agriculture. Misuse of our crop protection products may have a negative impact on human health and the environment. We are therefore focusing our smart stewardship activities on education and continuously improving our solutions for farmers through the use of digital tools and innovative technologies. Alongside aspects such as efficacy and productivity, this also includes safe use by our customers and impacts on the environment. All of BASF's crop protection products can be used safely under local farming conditions if the information and directions on the label are followed. If they have any questions, complaints or issues, our customers can contact us through

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various channels, for example, by calling the telephone hotlines printed on all product labels, using the contact forms on our websites or by approaching our sales employees directly. We record all product incidents relating to health or the environment that come to our attention in a global database. If necessary, we take appropriate measures on the basis of this information to minimize preventable incidents. These may include updating the instructions for use on product labels. We communicate these changes and general recommendations on the safe use of our products through channels such as our global training and education activities.

» For more information on smart stewardship, see basf.com/smart-stewardship

In order to protect water as a resource, deepen our knowledge and share our expertise with others, we cooperate with numerous partners along the value chain and from civil society. We are, for example, a member of the Alliance for Water Stewardship, which, with its Strategy 2022–2030, calls for collective action to tackle shared water challenges. In addition, we are continuously involved in networks such as the Alliance to End Plastic Waste (AEPW), the World Plastics Council and Operation Clean Sweep® (OCS) to prevent waste from plastic production from entering water bodies. For example, all of BASF’s European production sites for polystyrene, expandable polystyrene, polyurethane, thermoplastic polyurethanes, engineering plastics, polyamides and specialty polymers are now certified by independent third parties according to the OCS European standard. In South America, we support sustainable development activities, including in the area of water, through Fundação Eco+.

Global targets

E2-3

In our global sustainability-related corporate targets (for additional information, see page 32 onward), we see effective levers in terms of environmental protection in general. These include our climate protection targets to reduce greenhouse gas emissions, our target of closing loops, our TripleS-related target, our sustainable water management target and our responsible procurement target.

We also endeavor to minimize potential incidents impacting the environment through our targets for resource-efficient and safe production, particularly our process safety target. A process safety incident, however, does not necessarily have a negative impact on the environment. Since 2025, the environmental impacts from process safety incidents have been systematically recorded in a global database – as was already the case in the past for transportation incidents. In 2025, we had one process safety incident with significant impacts on the environment and no transportation incidents with significant impacts on the environment (2024: none).²

BASF does not have a specific reduction target for emissions to air (excluding greenhouse gases) and water in the topic Pollution Prevention. Relevant indicators are monitored and published on a regular basis (see Metrics section from page 209 onward). The ways in which we track the effectiveness of our policies is discussed in the Strategy and governance section from page 200 onward.

We discuss the sustainability topics that are material for BASF at regular meetings with external stakeholders as part of our strategic stakeholder engagement as well as in meetings with investors. Through this, the expectations of our stakeholders are continuously taken into account when setting potential targets.

² Our methodology for assessing environmental impact is based on chemical-specific standards. It includes criteria such as the amount of substance released into the environment and the actual environmental impact observed.

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Metrics

Emissions to air and water

E2-4

Emissions to air (excluding GHG)a

Pollutant

In kg per year	2025	2024
Carbon monoxide (CO)	2,003,743	1,841,646
Ammonia (NH3)	1,787,900	1,894,780
Non-methane volatile organic compounds (NMVOCs)	2,456,845	2,622,097
Nitrogen oxides (NOx/NO2)	7,715,633	7,793,697b
Sulfur oxides (SOx/SO2)	905,959	905,966
Hydrochlorofluorocarbons (HCFCs)	12,670	15,667
Chlorofluorocarbons (CFCs)	-	181
Halons	-	198
Arsenic and compounds (as As)	61	53
Cadmium and compounds (as Cd)	21	20
Chromium and compounds (as Cr)	259	123
Mercury and compounds (as Hg)	20	20
Nickel and compounds (as Ni)	798	680
Zinc and compounds (as Zn)	560	835
1,2-Dichloroethane (EDC)	2,006	1,867
Dichloromethane (DCM)	16,595	11,730
PCDD + PCDF (dioxins + furans) (as Teq)	0.002	0.003b
Tetrachloromethane (TCM)	1,039	1,025
Trichlorobenzenes (TCBs) (all isomers)	2,799	2,604
Trichloromethane	5,534	5,625
Benzene	13,674	15,425b
Ethylene oxide	3,565	3,846
Naphthalene	16,024	14,564
Chlorine and inorganic compounds (as HCl)	113,847	134,044
Hydrogen cyanide (HCN)	2,274	3,163
Particulate matter (PM10)	832,095	785,785b

a The table contains only consolidated values for emissions to air that exceed the threshold values in Annex II of Regulation (EC) No 166/2006.
b The comparative figure for 2024 has been adjusted to reflect updated data.

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Emissions to watera

Pollutant

In kg per year	2025	2024
Total nitrogen	2,085,556	1,875,809
Total phosphorus	144,943	172,297
Arsenic and compounds (as As)	423	483
Cadmium and compounds (as Cd)	34	45
Chromium and compounds (as Cr)	508	326
Copper and compounds (as Cu)	1,329	2,212
Nickel and compounds (as Ni)	2,051	1,812
Lead and compounds (as Pb)	–	34
Zinc and compounds (as Zn)	6,265	7,322
Halogenated organic compounds (as AOX)	28,402	37,452
PCDD + PCDF (dioxins + furans) (as Teq)	0.01	0.03
Pentachlorophenol (PCP)	–	1
Trichloromethane	721	–
Nonylphenol and nonylphenol ethoxylates (NP/NPEs)	263	280
Ethylene oxide	–	90
Naphthalene	35	–
Organotin compounds (as total Sn)	294	–
Phenols (as total C)	5,739	4,698
Polycyclic aromatic hydrocarbons (PAHs)	88	–
Total organic carbon (TOC) (as total C or COD/3)	2,948,482	3,485,782
Chlorides (as total Cl)	314,265,963	243,528,382
Cyanides (as total CN)	6,034	4,399
Fluorides (as total F)	133,291	140,374
Octylphenols and octylphenol ethoxylates	58	89

a The table contains only consolidated values for emissions to water that exceed the threshold values in Annex II of Regulation (EC) No 166/2006.

The emissions figures presented are based on data from over 200 production sites. The reported emissions vary due to site-specific factors, including production volumes, scheduled plant shutdowns, startup and shutdown processes as well as the acquisition and sale of assets. The application of the threshold values according to Annex II of Regulation (EC) No 166/2006 means that minor emission levels are not included in the overall total. Therefore, emissions may be reportable in one year and not in the following year due to annual fluctuations. In 2025, the total emissions to air remained almost unchanged compared to 2024. The total emissions to water increased compared to 2024. The largest change concerns chloride emissions and is primarily attributable to a technical measure implemented at one of our sites.

For a description of our measurement methods on determining the quantities of substances emitted in connection with environmental pollution and a description of the data collection process for accounting and reporting in connection with the reduction of environmental pollution, as well as general information on the estimation or rounding of individual sustainability metrics, see General Disclosures from page 149 onward in our (Consolidated) Sustainability Statement.

Substances of concern or of very high concern

E2-5

Substances of concern or of very high concern may represent an integral component of the chemical raw materials used for production. They can also be found in chemical products. To this extent, a portion of our products, which are key input products in further industrial or professional value creation or application, contain substances of concern or of very high concern. We address the safe handling and

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usage of chemical raw materials and products as part of our product safety management systems (see also page 204).

We work continuously on ensuring our products -- including those that may contain substances of concern or very high concern -- pose no risk to humans and the environment when they are used responsibly and in the manner intended. Thorough safety and risk assessment enables us to serve markets with innovative and more sustainable products that meet regulatory requirements while still responding to changing regulatory frameworks, increasing sustainability requirements, and market and customer needs.

We aim to comply with all relevant national and international regulations and laws. The guidelines, requirements, processes and responsibilities described above in this chapter under Strategy and governance, also pertain to the handling of substances of concern and of very high concern.

We document and evaluate the safety, health and environmental information for our substances and products in a global database. We update this information on an ongoing basis. The database forms the basis for communicating this information via our safety data sheets (see also page 204), which we provide to our customers in around 40 languages. Our global emergency hotline network enables us to provide information around the clock. To ensure that people who buy, sell, use, transport or dispose of our products can quickly find information about the products and their associated hazards, we use the Globally Harmonized System (GHS) to classify and label our products worldwide, provided this is legally permissible in the country concerned. We take into account national or regional adaptations within the GHS framework if applicable, such as the EU's regulation on the classification, labeling and packaging of substances and mixtures (CLP Regulation).

If necessary, we advise our customers on product safety. We set global requirements on the safe transport of dangerous goods for our logistics service providers (see page 207). We also train our employees worldwide on the proper handling and usage of selected products with special hazard potential. In associations and together with other manufacturers, BASF supports the establishment of voluntary global commitments to prevent the misuse of chemicals. We are also involved at national and international level in various initiatives to further develop risk assessments, such as that of the European Centre for Ecotoxicology and Toxicology of Chemicals (ECETOC).

With such efforts, we aim to ensure that substances or products containing substances with very high hazard potential are safely handled and to ensure that impacts on human health and the environment can be prevented.

Substances of concern and of very high concern are subject to strict regulatory supervision. The list of restricted substances with hazardous properties is continuously growing. This can change both the future availability of raw materials and the market behavior of customers and consumers. Normally, such changes are planned well in advance and transparently, allowing the industry to prepare by taking suitable measures, such as substitution planning or the implementation of derogations. Our proactive TripleS steering instrument, for example, makes a substantial contribution to planning a more sustainable portfolio. A potential material risk for value chains, which would affect the whole industry and not specifically BASF, could only arise in the event of an unforeseen proliferation of regulatory measures.

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The substances of concern or of very high concern deployed by BASF in global value chains in 2025 are listed in the following tables.

As an integrated chemical company, BASF manufactures a broad portfolio of products, many of which are further processed by customers in the chemical industry. We handle the substances in our production appropriately and supply our customers with products that can be used safely if handled properly. As a B2B company, we market only a very small portion of our products directly to consumers and end users. The values in the tables below correspond to the tonnages introduced per hazard class. As individual substances can be assigned to several hazard classes and are therefore recorded several times, it is not possible to derive a reliable total tonnage for all substances of concern or of very high concern introduced into the downstream value chain.

Information on substances of concern (SoC) introduced into the downstream value chain that are classified in one of the following hazard classes or hazard categories in Part 3 of Annex VI of Regulation (EC) No 1272/2008 (CLP Regulation)

Main hazard class^{a}	Total volumes (aggregated)
Million metric tons per year	2025	2024
Carcinogenity (Carc. 1; Carc. 2)	4.9	4.2
Germ cell mutagenicity (Muta. 1; Muta. 2)	2.2	2.1
Reproductive toxicity (Repr. 1; Repr. 2)	0.7	0.7
Respiratory sensitization (Resp. Sens. 1)	2.6	2.0
Skin sensitization (Skin sens. 1)	3.7	2.8
Hazardous to the aquatic environment, long-term hazard (Aquatic Chronic 1; Aquatic Chronic 2; Aquatic Chronic 3; Aquatic Chronic 4)	1.3	0.8
Damages the ozone layer (Ozone 1)	<1 kt	<1 kt
Specific target organ toxicity, repeated exposure (STOT RE 1; STOT RE 2)	3.4	3.4
Specific target organ toxicity, single exposure (STOT SE 1; STOT SE 2)	0.6	0.6

a Where components in a product/material are assigned to more than one main hazard class, the volume of components will be included in each hazard class, respectively. The table only contains consolidated values for totals per main hazard class where the main hazard class is a fully implemented component of the CLP Regulation and total volumes greater than 0 metric tons per year have occurred.

Information on substances of very high concern (SVHC) introduced into the downstream value chain that correspond to the criteria pursuant to Article 57 and that have been identified pursuant to Article 59 (1) of the REACH regulation (EC) 1907/2006

Main hazard class as per REACH Article 57^{a}	Total volumes (aggregated)
Million metric tons per year	2025	2024
Carcinogenicity (Carc 1A; Carc 1B) (Article 57a)	0.3	0.3
Germ cell mutagenicity (Muta 1A; Muta 1B) (Article 57b)	0.2	0.2
Reproductive toxicity (Repr.1A; Repr. 1B) (Article 57c)	0.1	0.1
Persistent, bioaccumulative and toxic (PBT) Article (57d)	<1 kt	<1 kt
Very persistent and very bioaccumulative (vPvB) (Article 57e)	<5 kt	<5 kt
Substances – such as those with endocrine disrupting properties or those with persistent, bioaccumulative and toxic properties or very persistent and very bioaccumulative properties that do not meet the criteria of items d or e – that according to scientific knowledge probably have severe impacts on human health or on the environment, which give rise to an equivalent level of concern to those other substances listed under a to e and that are identified, on a case-by-case basis, in accordance with the procedure set out in Article 59 (Article 57f).	0.1	0.1

a Where components in a product/material are assigned to more than one main hazard class or nominated for the candidate list, the volume of components in each hazard class will be included, respectively.

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E3 Water

ESRS E3

Water is of fundamental importance in chemical production along the entire value chain. It is used as a coolant, solvent and cleaning agent, and to make our products. Waterways are used to transport goods. At the same time, water is a scarce commodity in an increasing number of regions. For this reason, we promote the responsible use of this resource with sustainable water management.

Our main business – the development, production and processing of chemicals – as well as the transportation of chemicals requires the responsible use of water as a resource. On the one hand, we aim to use water as sparingly and efficiently as possible. On the other hand, we want to minimize emissions of potentially harmful substances to water in our production processes and treat wastewater adequately. We address environmental, health and safety risks with a comprehensive Responsible Care Management System (see page 201).

ESRS 2 IRO-1

As part of our double materiality assessment (see page 163), the topic Water was identified as material. The assessment identified one material impact on water as a resource (see table Results of the double materiality assessment).

Results of the double materiality assessment for E3 Water: Impacts

Impact	Evaluation	Position in the value chain	Description
Limited availability due to water withdrawal and consumption	Negative	BASF's own operations; upstream and downstream value chain	Our activities impact water availability through water withdrawal in our own production, as well as water withdrawal and consumption along the entire value chain – particularly in water stress areas.

The impairment of water quality through regular emissions to water is covered in the chapter E2 Pollution Prevention (see page 199).

We systematically record all short and long-term opportunities and risks that arise from water as part of our general opportunity and risk management (for additional information, see page 90 onward).

As the basis for the double materiality assessment, all BASF sites were considered for our own operations. We systematically record and monitor water volumes and constituents in a Group-wide database. The impacts of water withdrawal and wastewater discharge are continuously assessed and documented as part of permitting requirements. The screening of new sites also includes environmental impact assessments by independent third parties. As part of internal approval processes, risks associated with environmental impacts are assessed and documented in an environmental statement. When assessing the upstream and downstream value chain, we are aware of the risks associated with the production and handling of chemical substances and draw on our own experience.

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By engaging in open and trusting dialog, we want to better understand our impact on the environment and include the perspectives of surrounding communities in our decision-making and doing. Our BASF production sites maintain close relationships with surrounding communities by providing information and updates on current developments, offering hotlines for immediate contact and availability as well as hosting community advisory panels where concerns about environmental impacts, such as water availability and quality, can be voiced (see also page 280). In the Civil Society Forum, founded in 2024, we exchange ideas with representatives of the civil society and trade union spectrum (for more information, see page 160). Among others, cases from the area of water use have also been discussed there. In addition, we rely on dialog forums and advisory councils, such as our Nature Advisory Council, which we established together with external specialists, where we discuss topics related to nature and biodiversity (for more information, see page 160).

» For more information on the BASF Nature Advisory Council, see basf.com/en/nature-advisory-council

Strategy and governance

E3-1

General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). These include, among other things, our Responsible Care Management System and, as part of this, our global standards in terms of environmental protection. BASF’s Position on Water Protection, our risk-based sustainability management for procurement and the Supplier Code of Conduct can also be found there. The specific aspects of these policies are explained in the following section.

Water protection in our production

We aim to reduce negative impacts on water availability that may be caused by water withdrawal for our own production. This requires a holistic approach and continuous control. Our water consumption is low compared with the total water volume sourced (see information on Water balance on page 219) and therefore not a material topic for BASF in terms of the double materiality assessment.

We have established Group-wide management and control systems for our own production. BASF is involved in the International Council of Chemical Associations' (ICCA) global Responsible Care® initiative. The responsible use of water as a resource is a core element of our Responsible Care Management System (see page 201), which is based on the eponymous initiative. It is also an important part of our commitment to the United Nations' Sustainable Development Goals (SDGs). This is also reflected in our position paper on water protection. We use Responsible Care audits, including in areas such as environment (Air, Water, Waste), to monitor compliance with our Responsible Care Management System.

» For more information on our position paper on water protection, see basf.com/water

A key component of our strategy since 2011 has been our water target “Introduction of sustainable water management” (see page 218 onward). We reviewed our target in 2024 as part of the introduction of the “Winning Ways” strategy and assessed it as important for the implementation of our strategy. This is also consistent with recent scientific findings, such as the Planetary Boundaries reassessed in 2023 (Richardson et al. (2023); Stockholm Resilience Centre). We want to protect water as a resource, continuously improve water use efficiency and reduce emissions. We focus on our Verbund sites as well as on production sites in water stress areas.¹ Here, we look at water availability, water quality and the impact of our water use on the environment and other users. For this, we use the standard of the Alliance for Water Stewardship (AWS) as guidance. AWS is a global multistakeholder organization that promotes the responsible use of water and of which we are a member.

¹ We define water stress areas as regions in which more than 40% of the available water is used by industry, households and agriculture. Our definition is based on the Water Risk Atlas (Aqueduct 4.0) published by the World Resources Institute. For more information, see wri.org/aqueduct. Our water target also continues to take into account the sites that we identified as water stress sites in accordance with Pfister et al. (2009) prior to 2019, as well as water stress sites according to Aqueduct 3.0.

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Our global standards and guidelines relating to water are defined in the Group-wide requirement Corporate Requirement Environmental Protection (for more information, for example on implementation, compliance and monitoring, see page 201 onward). These also include aspects of water management such as water use, water treatment and protection against pollution. BASF's global network of experts shares information, insights and best practices on the responsible use of water on an ongoing basis. Our requirements and guidelines are continuously updated on a regular basis. To this end, we also exchange information with authorities, associations and international organizations.

When developing our business strategies, we also consider the resilience of our business models (for more information, see Double Materiality Assessment from page 165 onward).

In the wake of advancing climate change, the resulting water shortages and extreme weather events, climate resilience measures are becoming increasingly important for our production (for more information on our risk management, see page 172 onward and details of our climate resilience measures in the area of water on page 216).

Water protection in the value chain

We are also aware of and want to mitigate the negative impacts of water withdrawal and consumption on water availability in the upstream and downstream value chains.

Upstream value chain

Our Procurement organization has established a global risk-based management system for our upstream value chain that specifies how we implement our due diligence processes (see page 267). In the event of specific incidents in this context, our management processes come into effect (see page 269 and 273). We have set out our expectations of suppliers in the globally valid Supplier Code of Conduct (see page 267), which also includes the responsible use of water as a resource. When selecting suppliers and evaluating supplier relationships, alongside economic criteria ESG standards are especially important. We expect our suppliers to minimize impacts on water scarcity. We arrange for third parties to evaluate suppliers with a high sustainability risk. Supplier evaluation is mainly performed as part of the chemical industry's Together for Sustainability (TfS) initiative (see page 269). Depending on business requirements, we perform our own Responsible Care audits at selected contract manufacturers if material risks have been identified with respect to environmental protection. This also includes the use of water.

Downstream value chain

In our downstream value chain, we continuously collaborate with our customers on innovations and the development of water-related solutions that are designed to enable their green transformation and make a significant contribution to sustainability (for more information on steering the sustainability performance of our product portfolio using the TripleS methodology (Sustainable Solution Steering), see page 157 onward). We offer our customers solutions that help purify water and use it more efficiently.

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We report transparently and comprehensively on how we use water. For example, in 2025, we again participated in the program established by the nonprofit organization CDP for reporting on data relevant to climate protection with regard to the topic of water. BASF again achieved leadership status with an A-rating in the final assessment. CDP evaluates how transparently companies report on their water management activities and how they reduce risks such as water scarcity. The assessment also considers the extent to which product developments can contribute to sustainable water management also at the customers of the evaluated companies.

Actions

E3-2

Our actions for the responsible use of water as a resource are often decentralized activities, projects and initiatives. They – like our management and monitoring systems – aim to ensure continuous optimization and further development and fall within the responsibility of the sites and Group companies. This goes hand in hand with the BASF approach to sustainability steering (see also page 150). For this reason, we have not defined an action plan with central resource allocation for the topic Water.

Actions in our own production

An important part of our Responsible Care Management System is the continuous analysis and the implementation of actions for improvement. This can include site-based projects to improve water efficiency or wastewater quality as well as off-site measures in collaboration with third parties to improve the water situation in the catchment area.

Corresponding projects address all levels of the mitigation hierarchy: prevent, reduce, recover and reuse, restore and regenerate. The extraction, treatment, transportation and recooling of water is often associated with a high energy demand. We are constantly working to optimize our energy consumption and the amount of water we use, and to adapt to the needs of our operations and the environment.

In order to use water as efficiently as possible, we rely on measures such as intelligent cooling water systems and increased water reuse. Depending on the further use of the water (from cooling or production processes), varying levels of treatment may be required, for example using membrane filtration. When water is reused for cooling processes, it is often cooled through evaporation in recooling plants before being used again. To ensure our supply of raw materials and transportation via water, we rely on early warning systems and, at the Ludwigshafen site in Germany, for example, on special vessels for low water levels on the Rhine. Multimodal transportation concepts with combined transportation methods increase the efficiency of transportation.

Process optimizations such as the use of modified valves or the recycling of low-temperature cooling water at the General Lagos site in Argentina for example are leading to water savings. At our Verbund site in Freeport, Texas, we commissioned a membrane bioreactor for treating wastewater in 2023, which improved the capacity and cleaning performance of the wastewater treatment plant. In the medium term, the treated wastewater is to be reused, thereby reducing the need for freshwater. In 2025, the first phase of the test operation for reuse took place.

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Depending on the local situation, we also implement actions together with other stakeholders. For example, at the Tarragona site in Spain, we are working with our water supplier AITASA and other companies to further expand wastewater reuse in the medium term. Through results such as reduced water use or the replacement of higher-quality water with alternative sources, our activities contribute to sustainable water management. At the Guaratinguetá site in Brazil, we have collaborated with local authorities, the Fundação Eco+ and other partners since 2011 on the Incentivo ao Produtor de Água program: Through improved soil management and the reforestation of primary forests, surface runoff and soil erosion in the Ribeirão Guaratinguetá catchment area have since been significantly decreased.

Production sites located in water stress areas are included in our target of Introducing sustainable water management (for more information, see page 218 onward). This also includes the implementation of actions for improvement.

Actions in the value chain

We advocate the responsible use of water as a resource along the entire value chain.

Upstream value chain

We monitor supplier compliance with environmental standards in the upstream value chain worldwide as part of our regular supplier evaluations (see page 269). If there is a need for improvement, we support suppliers in developing and implementing appropriate measures. We have also been involved in a wide range of initiatives to promote sustainability in the supply chain, for example since 2016 in the Pragati project for more efficient water use with regard to more sustainable farming of castor beans in India (see page 271).

Another example is our effort with regard to lithium sourcing. Together with BMW, Mercedes-Benz, Fairphone, Daimler Truck and Volkswagen, we were involved in the Responsible Lithium Partnership initiative from 2021 onwards. This initiative, which concluded in spring 2025, promoted the responsible use of natural resources in the Salar de Atacama in Chile. This region is home to the world's largest lithium brine reserves and a significant share of global production. With this in mind, the German Agency for International Cooperation (GIZ) was commissioned with organizing a local multistakeholder platform, also comprising Indigenous communities, on the water-related opportunities and risks of lithium and copper extraction and other commercial activities as well as with driving forward action plans. BASF participated in a study organized by BMW together with experts from the University of Alaska Anchorage and the University of Massachusetts Amherst to examine the hydrological conditions in the Salar de Atacama. The results of this study were incorporated as an important component of the Responsible Lithium Partnership initiative's work.

Downstream value chain

We also impact the availability of water resources in our downstream value chain through our products, solutions and their application, for example.

With TripleS, we have established a steering tool for our product portfolio based on the sustainability performance of our products (for more information, see page 157). Part of the evaluation process is also water protection. For example, more efficient water use in production, new approaches to water treatment or lower water consumption are relevant here.

> For more information on TripleS, see basf.com/en/sustainable-solution-steering

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Agriculture is one of the highest water-consuming industries worldwide. For this reason, we develop innovative solutions for efficient water use. We work closely together with our partners to counteract increasing water scarcity.

For example, together with the International Rice Research Institute (IRRI), a research organization headquartered in the Philippines, we were able to identify water-saving practices in rice cultivation as part of the Global Carbon Field Trial Program, which was launched in 2024. The results, published in September 2025, show that direct seeding of rice instead of conventional wet rice cultivation in flooded rice fields can reduce water consumption without affecting yields. Alternate wetting & drying, as well as improved straw management for soil protection, also had a positive effect.

In the field of seed, we enable more efficient water use, for example through vegetable varieties designed for hydroponic cultivation systems. In these high-tech cultivation systems, recycling and targeted management ensure that water is used much more sparingly than in traditional outdoor cultivation.

In addition, our crop protection products support modern and precise application technologies that can help farmers significantly reduce water consumption. Digital applications provide farmers with individual recommendations for optimizing the cultivation of their crops – for example through location-specific control – and thus also contribute to water conservation.

We work with numerous partners along the value chain and from civil society to protect water as a resource, deepen our knowledge and share it with others. We are a member of the Alliance for Water Stewardship (AWS), whose 2022–2030 strategy aims for sustainable water use and promotes collective action to tackle shared water challenges. In addition, we are continuously involved in networks such as the Alliance to End Plastic Waste (AEPW), the World Plastics Council and Operation Clean Sweep® to prevent waste from plastic production from entering water bodies. In South America, we support sustainable development activities, including in the area of water, through Fundação Eco+.

Global target

E3-3

Our aim is to introduce sustainable water management (for more information, see E3-1 on page 214) at our Verbund sites and at all production sites in water stress areas² by 2030, covering around 90% of BASF’s total water withdrawal. Water stress areas are identified based on the latest data on water stress areas in line with the World Resources Institute’s Water Risk Atlas.²

In 2025, we achieved 73% of our target³ (2024: 65%).⁴ Sustainable water management was introduced at eleven additional sites (2024: eight sites).

The focus of sustainable water management is on efficient water use, not necessarily on reducing water consumption, since the latter, compared with the total volume of water sourced, is not material for BASF in terms of the double materiality assessment. Efficient water use considers, among other things, reuse and the use of alternative or less sensitive water sources.

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As part of sustainable water management, our sites regularly assess the water situation in the catchment area, particularly when changes are made to the production infrastructure, but no later than every five years. Here, we look at water availability, water quality and the impact of our water use on the environment and other users. We use the AWS Standard as guidance. This raises awareness of potential risks and potential impacts such as water scarcity for the population.

Our commitment to sustainable water management also extends to our value chains. We have set out our expectations of suppliers in the global Supplier Code of Conduct (see page 267), which, among other things, covers the areas of Responsible Care® initiative including the responsible use of water as a resource. We want to drive sustainability in the supply chain in a targeted manner and are therefore focusing on suppliers with an increased sustainability risk (for additional information, see page 34). For the downstream value chain, we use the TripleS method to aim at reducing the environmental footprint of our products, also taking into account criteria for water protection (for more information, see page 157).

For more information on TripleS, see basf.com/en/sustainable-solution-steering

Metrics

E3-4

Water balance of the BASF Group in 2025
Million cubic meters per year

Withdrawal / supply
	1,521a
Surface water / freshwater	1,229
Brackish water / seawater	175
Groundwater	91
Drinking water	20
Reusable wastewater from third parties	2
Water from raw materials	4
Use
---
6,850 Water used in cooling processes Percentage in recirculating cooling systems 83% 199 Water used in productionb Percentage of water reused 8%
Discharge
---
1,314a Of which cooling water: 1,152 Of which wastewater from production:a 162
Surface water / freshwater 1,134
Brackish water / seawater 163
Groundwater 0.3
External treatment plant 17
Consumption
74a

a The difference between the volume of water withdrawn and the volume discharged is due to water consumption and the limited accuracy in measuring water discharge.
b Total from production processes, sanitation, rinsing and cleaning in production

Our water withdrawal in 2025 amounted to 1,521 million cubic meters (2024: 1,507 million cubic meters). This demand was covered for the most part by freshwater such as rivers and lakes. At some sites, we use alternative sources such as treated municipal wastewater, brackish water or seawater. A small part of the water we use reaches our sites as part of raw materials and steam, or is released in our production processes.

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Water use in 2025 totaled 7,050 million cubic meters (2024: 7,102 million cubic meters). The total volume of recycled and reused water in 2025 amounted to 5,714 million cubic meters (2024: 5,734 million cubic meters).

We predominantly use water for cooling purposes (88% of total water withdrawal), after which we discharge it back to our supply sources with no product contact. We reduce our water withdrawal for cooling purposes mainly by using recooling plants. Around 12% of our total water withdrawal is used in our production plants, for example, for extraction and dissolution processes or for cleaning. Here, too, we reduce our demand for water by reusing wastewater. Most of the water used for production purposes is discharged back to water bodies after being treated in our own or third-party wastewater treatment plants.

The BASF Group's water consumption describes the amount of water that is not discharged back into a water body, meaning that it is no longer available to other users. We calculate water consumption as the sum of evaporation in cooling processes, water content in our sales products and water consumed otherwise at our sites. Consumption is mainly attributable to the evaporation of water in recirculating cooling systems. A smaller amount is from the water contained in our products. Water consumption in 2025 amounted to around 74 million cubic meters (2024: 76 million cubic meters).

In 2025, around 33% of our production sites were located in water stress areas.⁶ These sites accounted for 19 million cubic meters (2024: 19 million cubic meters), representing 1% of BASF's total water withdrawal. Water consumption at these sites amounted to 8 million cubic meters (2024: 9 million cubic meters).

Production sites located in areas affected by high or extremely high overall water risk⁶ (23% of our sites in 2025) accounted for 14 million cubic meters (2024: 13 million cubic meters), representing 1% of BASF's total water withdrawal. Their water consumption in 2025 amounted to 6 million cubic meters (2024: 6 million cubic meters).

A general description of our measurement methods and a description of the data collection process, as well as general information on the estimation or rounding of individual sustainability parameters, can be found in the General Disclosures section of our (Consolidated) Sustainability Statement from page 149 onward.

Based on net revenue (in million €) and water consumption (in cubic meters), water intensity in 2025 amounted to 1,170 cubic meters per million €⁷ net revenue (2024: 1,171 cubic meters per million € net revenue).

⁶ Sites with high or extremely high water stress and/or overall water risk were determined based on the Water Risk Atlas (Aqueduct 4.0) published by the World Resources Institute.

⁷ For parameters related to the intensity of, for example, water consumption per sales, comparable BASF Group sales including the discontinued coatings business are taken into account. See also the explanation in the General Disclosures chapter on page 148. BASF Group sales excluding the discontinued coatings business are presented in the report on the Results of Operations (see page 48); for the sales revenue of the discontinued coatings business, see Note 3 to the Consolidated Financial Statements on page 323.

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E4 Biodiversity and Ecosystems

ESRS E4

Biodiversity is the foundation for functioning ecosystems and is under significant pressure. As a chemical company, we use valuable natural resources such as water, air and soil. At the same time, our business activities have an impact on these resources, for example through emissions to the environment or the sourcing of renewable raw materials.

ESRS 2 IRO-1

In our double materiality assessment, the topic Biodiversity and Ecosystems was defined as material (see page 163). In our assessment, we drew on three sources of information, in particular:

Assessments of various stakeholders and external experts
Assessments by BASF expert units and from specialist literature
Analysis of digital sources using big data and AI tools, such as the World Wide Fund for Nature's (WWF) Biodiversity Risk Filter (BRF)

Our key stakeholder groups include investors, customers, legislators, suppliers, insurers, competitors and various civil society actors such as nongovernmental organizations. We actively seek out partnerships with relevant interest groups and organizations worldwide, for example in the Taskforce on Nature-related Financial Disclosures (TNFD) or at the World Business Council for Sustainable Development (WBCSD), to expand our knowledge, raise awareness about biodiversity and drive necessary actions forward.

Since 2023, our Nature Advisory Council (NAC) has been a dedicated BASF advisory board for topics related to the protection of biodiversity and ecosystems (see page 160). The NAC supports us in obtaining an independent societal perspective on our activities in relation to nature and biodiversity topics.

In the event that our business activities negatively impact or could negatively impact affected communities, we involve them or their representatives in one of our stakeholder engagement formats (see page 280).

ESRS 2 SBM-3

As a chemical company, our business activities interface with nature, and therefore with biodiversity and ecosystems, in three key areas. These are:

Sourcing of raw materials
Operation of production sites
Attributes of our products

In order to better categorize and understand the impact of BASF on nature at our production sites, in their immediate surroundings and along the value chain, we use the five drivers of biodiversity loss as defined by the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES¹): land use change, pollution, climate change, overexploitation of resources, and invasive species. We also followed this logic in our double materiality assessment (see page 163).

¹ The IPBES is a multilateral agency of the United Nations (U.N.) and collects global scientific data, analyzes this data and indicates political courses of action.

BASF Report 2025
(Consolidated) Sustainability Statement | 221

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The following topics are dealt with in separate chapters: climate change in E1 Climate Change (from page 172 onward), environmental pollution in E2 Pollution Prevention (from page 199 onward), use of water as a resource in E3 Water (from page 213 onward). We did not examine the driver invasive species more closely, as we do not consider it relevant for BASF.

Thus, this chapter focuses on land use and the impacts of our business activities on land, as well as the condition of the natural environment in proximity to our relevant sites and in relevant value chains (see below).

No material impacts were identified with regard to desertification and soil sealing.

Our double materiality assessment identified four material impacts on biodiversity and ecosystems as well as one associated material risk for BASF (see tables below). We systematically record opportunities and risks as part of our general opportunity and risk management (for additional information, see page 90 onward).

Results of the double materiality assessment for E4 Biodiversity and Ecosystems: Impacts

Impact	Evaluation	Position in the value chain	Description
Impact on land degradation due to the sourcing of raw materials	Negative	Upstream value chain	By sourcing raw materials, we provide impetus for their cultivation and extraction. In some cases, this leads to land degradation.
Contribution of production sites to global drivers of biodiversity loss	Negative	BASF's own operations	BASF production sites can have a negative impact on biodiversity and ecosystems through their contribution to climate change, land use, pollution and resource consumption.
The loss of biodiversity may be facilitated by the use of crop protection products	Negative, potential	Downstream value chain	In the downstream value chain, the use of crop protection products across large agricultural areas could result in a reduction of biodiversity.
More sustainable intensification of farming	Positive	Downstream value chain	The use of our products, including crop protection products in agriculture, enables farmers to increase their productivity, thus supporting food production.

Results of the double materiality assessment for E4 Biodiversity and Ecosystems: Risks and opportunities

Risk	Evaluation	Description
Regulatory requirements for the marketing of chemicals	Negative	Changes in the law and other regulatory developments related to how chemicals may actually or are likely to affect the state of species, affect our opportunities to market BASF products.

Strategy and governance

E4-1

We are currently undergoing a transformation toward climate neutrality and observance of the planetary boundaries. To this end, we have set ourselves ambitious targets (see page 32) that also impact our business models and our strategy as well as how they interface with nature, biodiversity and ecosystems.

We want to continuously improve the efficiency of our resource use and make an increasing contribution to the circular economy (see page 237).
We aim to use more biomass as a raw material in the upstream value chain and in our production, and to increasingly cover our energy needs from renewable sources.
We steer our product portfolio with regard to the product-related contributions to improved sustainability (TripleS: Sustainable Solution Steering, see page 157).

These areas of transformation are also relevant to many of our stakeholders (see page 159).

BASF Report 2025

(Consolidated) Sustainability Statement

In 2025, we assessed the resilience of our business models generally (see page 165) as well as specifically for the area of biodiversity and ecosystems. The resilience assessment, which is relevant to this topic, considered in particular material impacts, risks and opportunities for BASF, dependencies on ecosystem services (raw materials, energy and water) and stakeholder requirements. The assessment was conducted by our biodiversity expert group under the basic assumption of a predominant continuity concerning our current raw material base and considered short, medium and long-term developments. In this way, we want to contribute to a future-oriented sustainability strategy. Resilience was discussed with the internal Biodiversity Sounding Panel in 2025. This committee consists of representatives from BASF's Corporate Sustainability and Corporate Environmental Protection, Health, Safety & Quality units and aims to coordinate BASF's approach to the topic Biodiversity and impact on nature. Elements of the resilience analysis were also discussed in the Nature Advisory Council in order to validate them externally. This included, for example, our handling of renewable raw materials. In addition, stakeholder views were incorporated into our resilience analysis using big data analyses and experts from the operating divisions.

The core of our business model is the production of chemical products from raw materials that are largely based on hydrocarbons and organic feedstocks. We are continuously working to further improve the efficiency of our production processes (see page 185). We also align our product portfolio with sustainability aspects in a continuous process using the TripleS method, among others. We measure the progress of this alignment on the basis of a specific target (see page 157).

The raw materials we use are largely of fossil origin, including, for example, gas and crude oil-based petrochemical raw materials such as naphtha and benzene. The proportion of renewable raw materials is significantly lower (see page 238). We consider the biodiversity and ecosystem risks associated with the sourcing of fossil raw materials to be low. This conclusion was based on analyses using the WWF's Biodiversity Risk Filter (BRF) (see page 226), an internationally recognized and science-based platform. For BASF, the BRF analysis identifies water as the most important dependency in terms of ecosystem services. In contrast, the supply of fossil raw materials is not a risk identified here. We therefore rate the resilience of our raw material supply with regard to procurement risks in the area of biodiversity and ecosystems as high.

Renewable raw materials are more dependent on ecosystem services (water, pollinators, soil, climate). BASF's sourcing of raw materials is diversified geographically (e.g. Europe and Asia Pacific), through different suppliers and through different raw material categories such as palm oil and European biomethane. Because we do not see any accumulation of risks for renewable raw materials, which account for well under 10% of our raw material base, there are no critical dependencies.

Our energy supply is dominated by fossil fuels, but is increasingly being completed by renewable energies (see page 183). We try to mitigate risks related to biodiversity through investments and diversification of our suppliers and our energy supply.

Although water is an increasingly scarce resource globally, it is not rated as a critical resilience factor due to high recycling rates (see page 219) and sustainable water management by BASF (see page 214).

BASF is broadly positioned in many markets, which increases our resilience. In the field of agriculture, we see a high level of resilience also in future as product demand continues to grow due to basic needs, climate adaptation and regulatory developments.

A material risk for BASF is regulation: New regulations due to actual or anticipated impacts of our products on nature may affect market approval. However, thanks to our track record in a complex regulatory environment, we are well positioned.

Overall, our business model shows high resilience to biodiversity-related risks, due to diversification of markets, raw materials and suppliers, proactive raw material management and the strategic steering of our product portfolio regarding sustainability.

E4-2

Our governance approaches and our policies for the topic Biodiversity and Ecosystems are based on three internationally recognized reference points: The five drivers of biodiversity loss as defined by IPBES (see page 221)The Kunming Montreal Global Biodiversity Framework (GBF) and its target of reducing biodiversity loss and reversing the trend by 2030The United Nations' Sustainable Development Goals (SDGs), including Zero hunger (SDG 2) and Life on land (SDG 15)

General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). These include the Supplier Code of Conduct, BASF's Position on Forest Protection, the Responsible Care Management System and, as part of this, our global standards for environmental protection. Also included are the procurement requirement, our principles for responsible sourcing of renewable raw materials and the BASF Palm Sourcing Policy. The specific aspects of these policies are explained in the following section.

Negative impact: Land use through the sourcing of raw materials

ESRS 2 SBM-3

The use of renewable raw materials can reduce the carbon footprint of our products, but it poses risks to biodiversity and ecosystems, for example through monocultures or deforestation. For this reason, we take environmental and social aspects into account in our risk analyses (e.g. working conditions and food security), rely on certified standards such as International Sustainability and Carbon Certification (ISCC) or Roundtable on Sustainable Palm Oil (RSPO), perform life cycle analyses and seek dialog with stakeholders in order to identify conflicting goals and act responsibly.

By sourcing raw materials from extractive processes such as mining, we influence land degradation and ecosystems, for example through soil erosion, biodiversity loss and water pollution. Our procurement requirement obliges suppliers to comply with environmental and social standards (see page 225); through circular economy, recycling projects such as lithium-ion batteries and the Verbund concept (see page 155), we reduce the need for raw material extraction and use resources efficiently.

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The Care Chemicals division publishes the Responsible Sourcing Report (formerly: Palm Sourcing Report) every year. The report documents actions and progress to promote sustainability and transparency in the palm value chain. Since 2023, it has also covered additional renewable raw materials.

Policies regarding the sourcing of renewable raw materials

E4-2

Our Procurement organization has set out requirements for our upstream value chain in a global, risk-based management system. We have defined the relevant standards for this in a global procurement requirement (see page 267). The requirement includes a risk assessment of our suppliers, which also examines their sustainability performance. The aim here, among other things, is to counter the negative impacts on the environment caused by the sourcing of renewable raw materials. We expect our suppliers to comply with internationally recognized environmental standards. Our expectations are laid down in our Supplier Code of Conduct (see page 267), which is integrated into our purchasing conditions. The Code of Conduct covers among other topics our expectations with regard to environmental, labor and social standards as well as the protection of biodiversity. In 2024, we added principles for the responsible sourcing of renewable raw materials to our procurement requirement, with the aim of halting or reversing the loss of biodiversity. We monitor compliance with these principles by means of concrete actions for the respective renewable raw materials, which are explained from page 228 onward.

Palm oil and palm kernel oil are among our most important renewable raw materials, which we use primarily for ingredients in cosmetics, detergents, cleaning products and food products. In addition to the Supplier Code of Conduct, the global BASF Palm Sourcing Policy specifies BASF's requirements for suppliers. These include the protection of forests and ecosystems, traceability, the protection of Indigenous rights and the inclusion of smallholder structures.

When using biological resources, we adhere to the provisions of the international Nagoya Protocol. This supplementary agreement to the U.N.'s Convention on Biological Diversity regulates access to genetic resources and benefit sharing. It sets out obligations (for example, compensation payments) for the users of genetic resources such as plant-based raw materials. We use internal control mechanisms such as Responsible Care audits to monitor compliance with these standards.

Our global Position on Forest Protection underscores our responsibility to conserve biodiversity-relevant areas such as carbon-rich forests and peatlands. Implementation is performed via unit-specific risk management systems, supported by minimum standards of the Corporate Center and audits by the Corporate Audit unit. Investment decisions take forest protection into account. In 2025, the position was updated to include the EU Deforestation Regulation (EUDR). BASF again achieved leadership status in the CDP assessment for forests (A rating) in 2025.

Influence of production sites on biodiversity loss

ESRS 2 SBM-3

About 20% of our around 1,200 sites worldwide are production plants. These contribute to the pressure on biodiversity and ecosystems through various effects, although direct causalities per site are usually difficult to establish. However, we record several metrics in our environmental database that are indicative of our contributions, such as emissions. In addition, our land use is documented by our Real Estate Management in terms of land occupation. This data forms the basis for monitoring the impact of our production sites on nature and supporting possible improvements.

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

We consider the influence of our sites on biodiversity and ecosystems based on effects that we link to the drivers of biodiversity loss as defined by IPBES (see page 221). This analysis assigns environmental parameters recorded in our environmental database as well as data on land use to the individual drivers of biodiversity loss and enables a comparative consideration of the production site portfolio. The driver of invasive species is not taken into account, as we do not consider this relevant for BASF. Therefore, the land use and land occupation of our production sites (indicative of land use), emissions such as eutrophication and acidification (indicative of environmental pollution), the extraction and consumption of water (indicative of overexploitation of natural resources), and site-specific greenhouse gas equivalents (climate change) were specifically considered.

In addition, our production sites were analyzed with regard to their impacts and dependencies on the basis of 33 indicators using the WWF's Biodiversity Risk Filter (BRF), an internationally recognized and science-based platform. The BRF assessment indicated that BASF's greatest dependency lies in the topic Water, both in terms of the quality and availability of water for our production sites. For one group of sites, a potential impact was identified due to tropical cyclones. Ranked third was the risk of extreme heat. BASF already actively addresses these three dependencies as part of its site management. The BRF analysis identified pollution as the greatest potential impact of BASF at our sites. However, this figure was considerably lower than the BRF estimate for the chemical sector overall. BASF systematically addresses the risk of environmental pollution. Strategies and actions are explained in E2 Pollution Prevention (see page 199). The proximity of our sites to biodiversity-sensitive areas is described in the Metrics section (see page 231).

Policies regarding our production sites and their impact on biodiversity loss

E4-2

We are committed to environmental protection and sustainability at our sites. The aim is to minimize the impact of production on people and the environment and to achieve continuous improvement. We do not have dedicated policies for the protection of biodiversity in proximity to our sites, but instead rely on our comprehensive Responsible Care Management System. Alongside global requirements and health and safety standards (see page 201), this also covers environmental protection.

BASF sets stringent standards for the exploration and development of new sites and incorporates requirements for environmentally friendly development and the inclusion and protection of nature and ecosystems in accordance with our Responsible Care Management System.

Land use is subject to a high level of control by internal mechanisms and requirements, by authorities and within the framework of registrations and approval procedures.

Potential negative impact: Crop protection products and their impact on biodiversity and land

ESRS 2 SBM-3

The intensive agricultural use of large areas – often using crop protection products – competes with the preservation of near-natural habitats. Farms play an important role here: They not only need to secure yields, but must also meet societal expectations and protect the environment and nature. Actions to promote biodiversity can help to reduce negative impacts and reconcile economic and environmental goals. BASF has been committed to more sustainable agriculture for over 20 years, for example in the BASF Farm Network. This network brings together farmers, environmental organizations, universities and companies to demonstrate how agriculture and nature conservation can coexist through practical projects. The aim is to promote biodiversity on agricultural land and to use water and soil more sustainably.

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Improper use of crop protection products can harm people and the environment. We are therefore focusing our smart stewardship activities on comprehensive education and continuously improving our solutions for farmers. In addition to aspects such as efficacy and productivity, this includes safe use by our customers and impact on the environment. We consider the entire life cycle of our products – from research and development to their proper use and disposal.

Crop protection products and seeds are subject to strict legal requirements worldwide. New active ingredients and cultivation systems are only approved by respective authorities if it has been comprehensively proven that they are harmless to humans, animals and the environment when used properly.

Positive impact: More sustainable intensification of farming

ESRS 2 SBM-3

Modern crop protection products make an important contribution to the more sustainable intensification of agriculture. They help to increase yields, reduce crop losses caused by pests and secure the global food supply. At the same time, they enable a more efficient use of resources such as water and fertilizers, which reduces the environmental impact. A more sustainable increase in food production on existing agricultural land can also reduce the pressure to expand agricultural land into adjacent natural areas and thus contribute to the protection of biodiversity.

The Agricultural Solutions division develops innovative solutions for sustainable agriculture – including climate-resistant seeds, biological and chemical pesticides and digital technologies for precise field management. The aim is to reduce $\mathrm{CO}_{2}$ emissions per metric ton of crop yield and to expand digital applications to over 400 million hectares. These measures are part of a comprehensive strategy that combines productivity and resource conservation, for agriculture that is both economically and environmentally more sustainable.

Policies regarding the impacts of crop protection products and the more sustainable intensification of agriculture

E4-2

We endeavor to continuously minimize the negative impact of our products on safety, health and the environment and to continuously optimize our products. This commitment is based on the objectives set forth by the Responsible Care® initiative of the International Council of Chemical Associations (ICCA) and our own global environmental protection standards. For more information, see chapters E2 Pollution Prevention (see page 199) and E3 Water (see page 213). As with all BASF products, crop protection products are systematically documented and evaluated using the TripleS method. This method takes into account environmental, social and economic aspects throughout the entire life cycle of a product.

In the area of crop protection, we are also committed to international standards, including:

The International Code of Conduct on Pesticide Management
The Principles of Integrated Pest Management (IPM)

We evaluate our products and solutions in crop protection and seeds throughout the entire research, development and registration process for potential risks and impacts to the ecosystems in which they are used.

BASF Report 2025
(Consolidated) Sustainability Statement

Material risk: Regulatory requirements for chemicals

ESRS 2 SBM-3

The chemical industry is facing substantial risks due to changes to and development of regulatory requirements or approval conditions. These also affect the area of biodiversity and ecosystems. More stringent regulations may limit the approval, use or marketing of certain chemicals. BASF plans to respond to regulatory changes with a combination of proactive and reactive measures. These include continuous monitoring, analysis of the regulatory framework and steering of our product portfolio using the TripleS method. We also invest in research and development in order to continuously develop chemicals with improved toxicological and ecotoxicological properties and to thus meet the new requirements. Moreover, BASF is committed to working closely with stakeholders and regulatory bodies to ensure that company practices comply with the latest standards.

Actions

E4-3

We take actions in a variety of areas to ease the pressure on biodiversity and ecosystems or to impact them positively. We consider these to be key measures: The steering of our product portfolio toward more sustainability through TripleSOur actions concerning the sourcing of certified palm-based raw materials

Further actions outlined in the following section often represent locally organized activities, projects and initiatives. They are not governed by a centrally managed action plan.

Actions in the topics Climate Change and Pollution are described in the chapters E1 Climate Change (from page 183 onward) and E2 Pollution Prevention (from page 205 onward). Our actions concerning the protection of water as a resource are also discussed separately in chapter E3 Water (from page 216 onward).

Sourcing of renewable raw materials

We are involved in various initiatives in our upstream value chain to manage the sourcing of renewable raw materials in a way that protects local biodiversity, for example palm-based raw materials. Due to the risk of deforestation during the extraction of these raw materials, we regularly monitor potential deforestation violations at our suppliers' sites with the Palmoil.io platform. We have been a member of the RSPO for more than 20 years and contribute to further national and international initiatives, such as the German Forum for Sustainable Palm Oil (FONAP) and the High Carbon Stock Approach (HCSA) organization.

We source most of our palm-based raw materials from Malaysia and Indonesia. As a study conducted for the European Commission shows, smallholders account for around one-third of the total volumes produced there. Through our involvement in local initiatives, we aim to expand our supplier base for RSPO-certified palm products while simultaneously supporting smallholder structures and sustainable production methods that help to protect local biodiversity. Since 2024, we have been working in partnership with the Indonesian nonprofit organization Kaleka in a local follow-up project to support smallholders in Central Kalimantan. The aim is to promote regenerative agricultural methods as well as to help establish favorable political framework conditions and regulations. We are also involved in a local project in Sumatra through the Forum for Sustainable Palm Oil.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Since 2023, BASF has been working with the NGO Solidaridad to promote sustainable palm oil production and improve the living conditions of smallholders in Indonesia and Malaysia. Since 2024, the focus has been on resilient production systems and integrative market access, including preparation for international standards and certifications. In addition, a partnership has been established with Solidaridad and Fedepalma to promote more sustainable palm oil production in Colombia through improved cultivation practices.

We have developed a grievance mechanism for our palm value chain that reflects our commitment to the No Deforestation, No Peat and No Exploitation (NDPE) policy and that encompasses both direct partners and third-party suppliers. In the event of violations, we take action up to contract termination. In our decisions, we also take into account results from the RSPO's grievance mechanism.

We are also driving the market transformation toward certified, sustainably sourced oleochemicals for another renewable raw material: coconut oil. We use coconut oil to manufacture ingredients for products such as detergents, cleaning agents and cosmetics. We have, for example, certified our production sites in Cassina Rizzardi, Italy, and Zona Franca, Spain, under the Rainforest Alliance Mass Balance Coconut scheme.

> For more information on our voluntary commitment to palm oil products and our palm grievance procedure, see basf.com/en/palm-dialog

BASF sites and production plants

In the management of our sites and their plants, we aim to act as a good neighbor and strive toward conserving biodiversity and ecosystems and minimizing negative impacts on the environment. Continuous monitoring and documentation of emissions to air and water as well as the implementation of measures for improvement are an integral part of our environmental management. This is regularly audited by the Corporate Environmental Protection, Health, Safety & Quality unit of the Corporate Center.

We continuously optimize the production processes at our sites. This includes initiatives to improve energy efficiency (see page 185), reduce emissions to air and water and avoid waste (see pages 205, 216 and 237). We primarily rely on proactive actions and methods to protect biodiversity and only to a lesser degree on compensation measures. These are sometimes necessary, on account of conditions imposed by financial institutions and official bodies, for example.

When it comes to investment decisions on the construction of new sites or the expansion of existing ones, the potential impacts on forests and other biodiversity criteria are systematically considered. In this regard, a decision may also be taken to institute compensatory measures.

Impacts in our downstream value chain

In our corporate strategy, we focus on enabling our customers' efforts toward a green transformation with suitable BASF products. Today, we are already using alternative raw materials from renewable sources or recycling, for example, in selected value chains in order to add sustainability attributes to our products. To increase transparency regarding our product-specific greenhouse gas emissions and to implement our $\mathrm{CO}_{2}$ reduction measures where they add the greatest value, we use a digital solution to calculate the carbon footprint of about 40,000 products on an ongoing basis (see page 188).

BASF Report 2025

(Consolidated) Sustainability Statement

With TripleS, we have established a steering tool for our product portfolio based on the sustainability performance of our products (see page 157). Through our TripleS target, we annually review the effectiveness of these measures in the area of biodiversity and ecosystems.

Our Agricultural Solutions division offers farmers various solutions to promote biodiversity in agriculture while simultaneously ensuring more productive and more efficient food production. An example of this are our free e-learning modules on biodiversity and agriculture. The interactive training is aimed at interested farmers and provides practical knowledge on the promotion of biodiversity in the field. We document participation in our training and development programs annually. In the 2025 business year, 228,904 people participated (2024: 199,427 people).

Global targets

E4-4

Our sustainability-related corporate targets (for additional information, see page 32 onward) also contribute to the protection of nature. These include our climate protection targets to reduce our greenhouse gas emissions (see page 189), our targets in the area of resource use and circular economy (see page 237) and our sustainable water management targets (see page 214).

BASF has not set a dedicated target for the topic Biodiversity and Ecosystems in general or specifically with regard to the impacts of our sites or our production activities. We are reviewing whether we can derive a separate target for the topic Biodiversity and Ecosystems, either from various approaches or as an overarching ambition.

In relation to our impact in connection with the sourcing of renewable raw materials, we set ourselves the target in 2015 of purchasing 100% certified palm oil and palm kernel oil from 2020 onward. We regard this target as a key indicator of whether our measures in the upstream value chain are successful. With 79.2% in 2025, we were unable to meet this target due to insufficient availability of RSPO-certified palm kernel oil (2024: 98.1%). The introduction of the EU Deforestation Regulation further exacerbates the situation, resulting in shortages of raw materials suitable for the European market. In 2025, we were able to trace about 98% of our global palm footprint back to the oil mill (2024: 97%).

We remain committed to sourcing 100% certified sustainable palm oil and palm kernel oil to the extent that this is commercially available and possible. By 2030, we also want to source derivatives of palm oil and palm kernel oil as 100% certified (2025: 8.4%, 2024: 10.2%). RSPO certification remains our preferred standard. If we consider alternative standards or systems, they must demonstrate an equally stringent focus on environmental protection, labor standards and human rights. In addition, we will strictly adhere to our responsible sourcing principles.

With regard to the impact of BASF's raw material sourcing, we are focusing on our strategic target of almost doubling sales with Loop Solutions to €10 billion by 2030 compared to the base year 2023 (see page 237). In doing so, we aim to contribute to the more efficient use of resources and counteract climate change. This can also ease the pressure on ecosystems, as the use of recycled raw materials reduces demand for newly extracted raw materials.

As part of our Responsible Care Management System, for example, we review the effectiveness of our actions in terms of combating the impacts of our raw material sourcing. We assess our impacts in the downstream value chain using the TripleS method and the associated target in relation to products that have a positive impact on sustainability (see page 157). These Sustainable-Future Solutions also include products that have less impact on ecosystems during production, for example through the use of biomass or recycled raw materials. An example of this is surfactants made from certified, more sustainable palm oil and palm kernel oil, which are used in detergents, cleaning agents and dishwashing detergents.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

We do not rely on compensation measures to reach the aforementioned targets. With our selected actions and targets, we focus on avoiding or reducing negative impacts pursuant to the mitigation hierarchy.

Metrics

ESRS 2 SBM-3 ESRS 2 IRO-1 E4-5

BASF production sites use established and globally recognized biodiversity and nature conservation databases³ to document the proximity to biodiversity-sensitive areas and assess possible direct negative impacts on these areas. For this purpose, a radius of three kilometers starting from the center of the site or its postal address is taken into account. A further development of this approach for particularly large sites is currently under development. The sites document their results in our environmental database (see page 149). In 2025, 29%⁴ of our production sites⁵ bordered a biodiversity-sensitive area, of which no sites reported negative impacts on such an area.

If a case with direct negative impacts on a biodiversity-sensitive area becomes known, we identify their cause. This could, for example, be a product leak, habitat destruction due to construction work or the feeding in of untreated wastewater. Once we have concluded our investigation, we review the actions planned or already implemented in order to reduce or mitigate any impacts on nature.

» For more information on our commitment to biodiversity, see basf.com/biodiversity
» For more information on our Position on Forest Protection, see basf.com/forestprotection

BASF report 2025

(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

E5 Resource Use and Circular Economy

ESRS E5

As the world's population grows, so does demand for limited natural resources. At the same time, many valuable materials end up in landfill or in waste incineration. Using resources responsibly and closing loops are material for our business and achieving our sustainability targets.

In our double materiality assessment, the topic Resource Use and Circular Economy was classified as material (see page 163), with five material impacts¹, one risk and one opportunity for BASF (see table below). The sourcing and use of fossil raw materials negatively impact the environment through emissions, land use and environmental pollution. Waste generated along the entire value chain cannot always be put to new use due to technical and other limitations. The disposal of this waste has a negative impact on the environment. Regulatory requirements concerning the recyclate content of products and their recyclability pose new challenges for BASF’s product portfolio, but also open up new market opportunities for us.

ESRS 2 IRO-1

We use a Group-wide program to assess and develop new projects designed to promote the circular economy. We systematically record opportunities and risks as part of our general opportunity and risk management (for additional information, see page 90 onward). We also address impacts, risks and opportunities by regularly assessing external, independent reports such as the Circularity Gap Report, which is published annually by the Circle Economy Foundation initiative. Together with the World Business Council for Sustainable Development (WBCSD) and other companies, we developed a proposal for a global standard for circular processes (Global Circularity Protocol) across industries in 2025.

To discuss critical issues and, if needed, develop solutions together, we seek dialog with stakeholders. We are involved in numerous sustainability initiatives to advance sustainability both in general and in relation to our value chain. We are involved in networks, interest groups and associations in order to better understand, among other things, requirements, trends and growth opportunities, and to contribute to the development of standards. We cooperate with partners along the value chain, for example in the chemical industry’s Together for Sustainability (TfS) initiative, and are involved in numerous networks such as the Ellen MacArthur Foundation, the WBCSD, the Global Battery Alliance and the Alliance to End Plastic Waste.

¹ Three impacts on the topic of waste were considered separately according to their position in the value chain, but in the following table they were meaningfully summarized in one entry.

BASF Report 2025
(Consolidated) Sustainability Statement | 232

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Results of the double materiality assessment for E5 Resource Use and Circular Economy: Impacts

Impact	Evaluation	Position in the value chain	Description
Sourcing and use of fossil or renewable raw materials	Negative	Upstream value chain	We negatively impact overshooting of the planetary boundaries by sourcing and using fossil or renewable raw materials, for example through emissions, land use and environmental pollution.
Use of fossil or renewable raw materials	Negative	BASF's own operations; upstream and downstream value chain	We negatively impact overshooting of the planetary boundaries by using, processing and incinerating fossil or renewable raw materials, for example through emissions, land use and environmental pollution.
Resource consumption through waste	Negative	BASF's own operations; upstream and downstream value chain	We negatively impact the planetary boundaries by the waste generated throughout our value chain through procurement, production, use and disposal.

Results of the double materiality assessment for E5 Resource Use and Circular Economy: Risks and opportunities

Risks and opportunities	Evaluation	Description
Challenges due to new regulatory requirements	Negative	New regulatory requirements to protect the environment – especially in Europe, but increasingly also in other regions – are increasing the pressure on BASF's product portfolio, for example through recyclability requirements or mandatory recyclate content. This can present challenges for us in the sourcing of raw materials, for example due to higher costs and technical restrictions, which in turn can have a negative impact on BASF's business.
Growth through circular economy	Positive	New regulatory requirements and societal expectations regarding the circular economy – for example through mandatory recyclate content or recyclability – create potential market opportunities for BASF.

Successfully transforming to a circular economy requires a suitable framework. Uncertainties in the regulatory environment, the lack of availability of suitable raw materials based on waste and the current state of recycling technologies present challenges for BASF. At the same time, societal and market expectations as well as legal requirements regarding recycling and the circular economy are also creating new opportunities in the market for the distribution of our broad product portfolio.

Strategy and governance

E5-1

We are pursuing a holistic strategy to establish a circular economy and, at the same time, to reduce the environmental footprint of our business activities. Our strategy covers the entire value chain. General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). These include our procurement requirement and, as part of it, our risk-based sustainability management, our principles for the responsible sourcing of renewable raw materials, the BASF Palm Sourcing Policy, the Supplier Code of Conduct and our Responsible Care Management System. The specific aspects of these policies are explained in the following section.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

We want to offer our customers innovative products and solutions to support their green transformation. Our business units are therefore in close contact with our customers in order to better understand their sustainability needs and offer tailored BASF solutions. The insights from this dialog are also incorporated in our research projects and in innovation processes.

Sourcing of fossil or renewable raw materials

Alongside economic, environmental and social criteria, we also consider aspects such as product safety and supply security when selecting suppliers and raw materials. Our Procurement organization has set out guidelines for our upstream value chain in a global, risk-based management system. We have defined the standards for this in a global procurement requirement (see page 267). The requirement includes a risk analysis of our suppliers, which also examines their sustainability performance. The aim here, among other things, is to counter the negative impacts on the environment caused by the sourcing of both fossil and renewable raw materials (see page 225). We expect our suppliers to comply with internationally recognized environmental standards. Our expectations are laid down in our Supplier Code of Conduct (see page 267), which is integrated into our purchasing conditions. The Code of Conduct includes, among other things, the protection of human rights, compliance with valid environmental regulations and the efficient use of resources.

The global procurement requirement is supplemented by our principles for the responsible sourcing of renewable raw materials (see page 225) as well as specific internal guidelines, for example on sourcing palm-based raw materials (see page 225) or certain mineral raw materials.

Use of fossil raw materials

Reducing the use of fossil raw materials is not part of our requirements. We are focusing on actions and on our circularity target to increasingly replace fossil raw materials with renewable or recycled raw materials. We pursue BASF's Verbund concept² (see page 155) to ensure the efficient use of raw materials.

Waste in the value chain

We rely on our procurement requirement and our Supplier Code of Conduct to address waste management in our upstream value chain. The responsible management of resources and waste in our own production as well as of the negative impacts resulting from this are core elements of our Responsible Care Management System. Specifically, we intend to use it continuously to improve our processes in the areas of safety, environmental protection and resource use. Our global standards and guidelines relating to waste are defined in the Group-wide Corporate Requirement Environmental Protection (see page 150). This includes compliance with the waste management hierarchy: prevention, reuse, recycling, energy recovery, incineration, disposal. The sites and Group companies are responsible for implementing this requirement. The Corporate Environmental Protection, Health, Safety & Quality unit in the Corporate Center conducts regular audits to monitor compliance with legal and internal requirements.

Actions

E5-2

We aim to transition to a more circular economy to reduce emissions along the value chain. Our focus is on increasing the use of circular raw materials (both renewable and recycled), designing new material cycles and establishing new business models.

BASF Report 2025

(Consolidated) Sustainability Statement

We help to close and extend loops by developing and implementing circular solutions for the materials that we source, continuing to optimize our operations and offering resource-efficient products and services, in order to support our customers' circular processes. We are also developing product-specific recycling technologies and are involved in cross-industry networks and initiatives to avoid plastic waste and strengthen the circular economy.

E5-2

As part of our strategic direction toward a circular economy, BASF teams have developed new approaches in over 50 initiatives since 2019. These relate to the main action areas of making greater use of circular raw materials, designing new material cycles and establishing new business models. The respective BASF business units will drive forward the implementation of these initiatives in the long term.

We rely primarily on the following actions: Responsible sourcing of renewable raw materialsUse of the mass balance approachPartnerships to drive forward chemical recyclingThe steering of our product portfolio toward more sustainability through TripleS (see page 157)

Responsible sourcing of renewable raw materials

In line with our procurement requirement, our responsible sourcing of renewable raw materials takes the protection of biodiversity and ecosystems into account (see page 224). The aim here, among other things, is to counter the negative impacts on the environment caused by the sourcing of both fossil and renewable raw materials.

We are constantly working to switch to more sustainable raw material alternatives and to reduce the resources consumed in the manufacturing of our products, for example through more efficient processes and innovative technologies. In joint initiatives with suppliers and other partners, we develop and test long-term approaches for a more sustainable supply of raw materials, for example based on palm oil and palm kernel oil (see page 228).

Use of the mass balance approach

In addition, we continue to apply the mass balance approach in our production in the long term: Many BASF value chains start in syngas plants or steam crackers. This is where fossil feedstocks, mostly naphtha and natural gas, are converted into hydrogen and carbon monoxide or split into important basic chemicals such as ethylene and propylene. These are then processed further in the BASF Verbund to create thousands of products. In addition to fossil feedstocks, we feed alternative feedstocks from renewable and chemically recycled sources, such as bionaphtha, biomethane and pyrolysis oil, into the Verbund long term at our production sites in Asia Pacific, Europe and North America. These alternatives are used in place of fossil feedstocks for our mass balance products. As fossil, renewable and recycled raw materials are processed simultaneously, the feedstocks cannot be directly physically attributed to resulting derivatives. However, through monitoring by independent third parties such as TÜV Nord on the basis of recognized certification systems such as REDcert or the International Sustainability and Carbon Certification (ISCC) PLUS, it can be verified that an adequate amount of alternative feedstocks has been used for the amount of mass balance sales product. This ensures that fossil raw materials are saved with every sale of these certified products. We aim to use the mass balance approach to help our customers to achieve their sustainability targets. This can help BASF to purchase fewer fossil raw materials and reach its sustainability targets.

For more information on the mass balance approach, see basf.com/massbalance

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Combined Management's Report
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Mass balance products are identical in quality to conventionally manufactured products, but due to the alternative feedstocks used they contribute to more sustainability, for example, through fewer $\mathrm{CO}_{2}$ emissions or lower demand for fossil raw materials. In 2025, we expanded our mass balance portfolio in many areas, for example to include Ccycled® food packaging and biomass balanced products for customers in the automotive, electronics, cleaning and textile industries.

Partnerships to drive forward chemical recycling

One focal point of our activities in the area of circular raw materials is the chemical recycling of plastics. Chemical recycling has impacts on the entire value chain – from the sourcing of raw materials and the use of recycled raw materials in the manufacture of products to the downstream value chain, in which waste can be used as a raw material. We use this complementary technology to mechanical recycling to help reduce the amount of plastic waste that is disposed of in landfills or thermally recovered in the long term. Chemical recycling breaks down plastics into their building blocks or converts them into basic chemicals. Different methods are used for this, such as depolymerization, gasification or pyrolysis. As part of ChemCycling®, we feed pyrolysis oil into the BASF Verbund at our production sites in Asia Pacific, Europe and North America as a substitute for fossil feedstocks and manufacture Ccycled® products by applying the mass balance approach. Within the scope of a pilot project with cooperation partners, BASF successfully demonstrated in 2025 that complex vehicle waste such as automotive shredder residues (ASR) can be used as a material. Syngas and its derivatives were produced from ASR and biomass through gasification. In the production of feedstocks for new automotive steering wheels, BASF used the recycled raw material based on the mass balance principle, which made it possible to replace fossil raw materials. The project demonstrates that loops within the automotive industry can be closed.

E5-5

We are also pursuing the goal of closing product loops. One example of this is loopamid®. BASF developed this innovative solution to support the circular economy in the fashion industry and recycle polyamide 6 (PA6) textile waste. The technology behind loopamid® tolerates fabric blends such as PA6 and elastane, enabling textile-to-textile-recycling of industrial textile waste and used clothing from the downstream value chain. The fibers and materials can be recycled over multiple cycles. At the same time, the material's characteristics are identical to those of conventional polyamide. BASF commissioned the world's first commercial loopamid® plant at its Caojing site in Shanghai, China, in March 2025.

E5-2

Steering our product portfolio

A significant tool for the long-term global steering of the product portfolio based on the sustainability performance of our products is our TripleS method (Sustainable Solution Steering, see page 157). This steering method also allows us to enhance our portfolio with respect to the aspects of the circular economy and resource use. By doing so, we aim to contribute positively to reducing the sourcing of fossil raw materials by supporting the use of recycled raw materials and closed-loop product cycles. The latter could further reduce waste along the entire value chain.

BASF Report 2025
(Consolidated) Sustainability Statement

Waste management

We are committed to minimizing material consumption along our value chain. We expect our suppliers to comply with internationally recognized environmental standards. We support our suppliers in developing and implementing measures for improvement, for example in waste management. BASF's global network of experts shares information, experiences and best practices on an ongoing basis. Continuous monitoring, documentation and control of waste streams as well as the implementation of improvement measures are an integral part of our environmental management.

Through targeted waste management, which is set out in the Group-wide Corporate Requirement Environmental Protection, we aim to reuse materials by recycling them, for example, and to keep waste disposal volumes as low as possible. In this continuous process, we systematically track our material flows and follow a clear hierarchy: We aim to avoid waste as far as possible, for example, by continuously optimizing our processes or developing new production methods. This is where our Verbund structure with its networked plants and value chains comes in (see page 155). If waste cannot be used within the Verbund structures, we assess whether it can be recycled or thermally recovered. We have established processes for the safe, proper and environmentally responsible disposal of materials that we cannot recover or where recovery is not legally permitted. At the Ludwigshafen site, we introduced a new digital system for commissioning waste disposal at the beginning of 2025. It simplifies correct classification of the waste generated at the site and the commissioning of disposal. If we use external waste disposal companies, we conduct audits to verify that waste is disposed of properly. In this way, we also contribute to preventive soil protection and keep today's waste from becoming tomorrow's contamination.

Global targets

E5-3

We have set ourselves the target of ensuring that more than 50% of BASF's sales relevant to TripleS are attributable to Sustainable-Future Solutions by 2030 (see page 157). With these products, as well as through future products developed by research and development with circular design principles in mind, we are making a positive contribution to sustainability. We are aiming to reduce the negative impacts of the sourcing and use of fossil raw materials, for example, by using more recycled raw materials in such products and deploying circular solutions to make more efficient use of raw materials. This can also reduce the waste produced along the value chain. With this target, we aim to increase the proportion of our more sustainable products. This methodology and the associated target are based on clearly defined criteria in the respective ESG topic areas that are comprehensible in the methodology manual. There is currently no general quantitative scientific framework for business-related, more sustainable steering of the product portfolio that companies could use as a basis for setting targets. For more information on the methodology behind this target, see the General Disclosures chapter of our (Consolidated) Sustainability Statement from page 157 onward.

In addition, we aim to generate sales of €10 billion from Loop Solutions by 2030. This target was adopted by the BASF Board of Executive Directors in 2024 on the basis of the TripleS method to strengthen the circular economy. We define Loop Solutions as products that are categorized as Pioneers or Contributors in line with TripleS and that hence make a positive contribution to the circular economy. The total sum of absolute sales for these products are grouped together as Loop Solutions. These are products that are based wholly or partly on renewable or recycled raw materials, support recycling processes, increase durability of materials or prolong their lifetime. For example, multilayer packaging produced with our water-based Epotal^{®} adhesives can be easily separated into its individual recyclable materials during recycling, allowing them to be reused. Our aim with this target is to reduce waste along the value chain and to make a positive contribution to the more efficient use of raw materials. Regional legislation on the circular economy and the requirements set out therein, which we expect that our customers will have to meet, were also taken into account when setting the target. As part of the annual

review of the TripleS target, the products that contribute to the circular economy target are also analyzed. By doing so, we also measure and evaluate our development toward achieving our Loop Solutions target. Despite a challenging market environment, we see continuous progress in achieving our target (2025: €5.8 billion, 2024: €5.7 billion).

In this way, BASF is pursuing a holistic strategy to support a circular economy and at the same time achieve our sustainability targets. To meet our two product-specific targets, we will enhance the sustainability of our raw material base in the direction of a more circular economy.

There are no plans to introduce a dedicated waste management target. Our focus is on the efficient use of raw materials in our plants. We are continuously increasing this efficiency thanks to our focused actions (see page 237) and hence are also reducing the volumes of waste generated during production.

Metrics

Resource inflows

E5-4

Petrochemical feedstocks derived from gas and crude oil such as naphtha and benzene are among BASF's most important raw materials by volume. We use liquid gas and natural gas as fuels to generate electricity and steam, and as raw materials to produce key basic chemicals such as ammonia or acetylene. Naphtha is mainly fed into our steam crackers, where it is split into products such as olefins and aromatics. Olefins such as ethylene, propylene and butene are important feedstocks for numerous value chains at BASF. We use aromatics such as benzene or toluene to manufacture engineering plastics, among other products. Further details about water as a resource can be found in chapter E3 Water (from page 213 onward). Investments in property, plant and equipment such as the construction of new facilities or the expansion of capacities at existing production plants are of crucial importance to us as a chemical company. Information on these investments can be found in the chapter Material Investments and Portfolio Measures of the Management's Report (see page 36). Thanks to a high degree of forward and backward integration, we can produce feedstocks for our value chains efficiently within the BASF Verbund while conserving resources. We continuously evaluate whether fossil and petrochemical raw materials can be replaced with renewable or recyclate-based alternatives.

Our renewable raw materials are mainly based on vegetable oils, fats, grains, sugar and ethanol. We use these to produce ingredients for the detergent and cleaner industry or natural active ingredients for the cosmetics industry, for example. We also use renewable feedstocks such as biomethane and bionaphtha as an alternative to fossil feedstocks in our Verbund (see page 235).

We document the volumes of raw materials that we source by determining and adding together their weights. Solids are weighed directly, while for liquids and gases, the volumes are measured and the weights then calculated using their density.

Overall, we purchased 30.1 million metric tons of raw materials in 2025, which we generally also use in the same year (2024: 30.4 million metric tons). Of this, renewable raw materials accounted for 1.1 million metric tons and were mainly based on vegetable oils, fats, grains and sugar (2024: 1.2 million metric tons).

Of the renewable raw materials purchased in 2025, 21% were certified (2024: 24%), among other things by the Roundtable on Sustainable Palm Oil (RSPO), REDcert-EU or ISCC PLUS. Certification standards are not available for all renewable raw materials. As part of our commitment to more sustainability, we are focusing on those areas where these are currently still missing.

We sourced 7.2 metric kilotons of recycled raw materials in 2025 (2024: 11.3 metric kilotons). This corresponds to 0.02% of our raw materials (2024: 0.04%). The figure includes pyrolysis oil, which is obtained using chemical recycling (see page 236).

The independent BASF Environmental Catalyst and Metal Solutions (ECMS) division offers customers circular solutions and comprehensive services in the fields of catalysis and precious metal trading and recycling. These are used in mobile emissions catalysts as well as in chemical catalysts. ECMS has many years of experience and a high degree of specialization in the recycling of precious metals such as platinum, palladium and rhodium. We primarily use the precious metals recovered in this way as feedstocks to manufacture new products for the automotive, specialty chemical, semiconductor and green hydrogen industries.

Another focus is on the recycling of mineral raw materials. For example, our Battery Materials division is advancing innovative technologies and solutions for recovering metals such as lithium, nickel, cobalt and manganese from end-of-life lithium-ion batteries or production scrap. With the growing market for electric vehicles, the demand for recycling of lithium-ion batteries will increase. As a leading producer of battery materials with global production capacities, BASF has in-depth expertise in battery chemistry and process technology. We are utilizing these competencies to develop battery recycling as an additional growth market in cooperation with partners along the value chain. For example, in June 2025, we started operation of a battery recycling plant for the production of Black Mass at the Schwarzheide site.

Resource outflows

E5-5

The production and processing of chemicals is our core business. Our extensive product portfolio ranges from chemicals and materials to industrial solutions, surface technologies, nutrition and care through to agricultural solutions (see page 154). Our products are frequently used to manufacture durable, high-performance solutions such as electric motors for vehicles or insulation materials for the construction industry. We are making increasing use of alternative raw materials and processes in the manufacture of our products, to close material loops and reduce waste (see page 234). This includes in particular our Ccycled^{®} products (see page 236). We are helping to strengthen the circular economy and increase resource use by offering our customers products that support the recycling process, increase the durability of materials and prolong their useful life. With the TripleS method, we create transparency with regard to the sustainability contribution of our product portfolio. The extent to which BASF products can be recycled depends crucially on the products into which they are further processed by our customers. In pilot projects, we were able to demonstrate the principle of recyclability, for example of our high-performance plastics.

BASF generated 2.18 million metric tons of waste in 2025 (2024: 2.18 million metric tons). As is normally the case in the chemical industry, this includes metals, plastic waste as well as reaction and distillation residues, among other things. In coherence with the concept of the circular economy, we are continuously examining recycling or thermal recovery options for all waste. In 2025, we were able to find new uses for 1.32 million metric tons of our waste (2024: 1.09 million metric tons). A further 0.86 million metric tons of our waste were disposed of (2024: 1.09 million metric tons). 1.65 million metric tons (2024: 1.70 million metric tons) of our waste could not be recycled. This corresponds to 75.7% (2024: 77.8%) of the total waste generated. We continuously identify and evaluate safe and environmentally sound disposal routes for nonrecyclable waste. The hazardous waste disposed of in landfill is mainly contaminated construction waste that cannot be recycled due to legal requirements. BASF classifies

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Further Information

waste before its disposal in line with the applicable legislation. The volume is determined by weighing or flow measurement at the disposal company. The data determined by weighing serves as the basis for the applicable treatment or disposal costs. A general description of our measurement methods and of the process used to capture environmental data, including waste volumes, plus general information on estimating or rounding specific sustainability parameters can be found in the General Disclosures chapter of our (Consolidated) Sustainability Statement from page 149 onward.

Waste generation in the BASF Group in 2025

	Hazardous waste		Nonhazardous waste
In millions of metric tons	2025	2024	2025	2024
Recovery
Recycled	0.15	0.16	0.37	0.32
Thermally recovered	0.68	0.47	0.12	0.14
Waste recovered	0.83	0.63	0.49	0.46
Disposal
Through incineration (without energy recovery)	0.38	0.63	0.05	0.05
In surface landfills	0.12	0.09	0.17	0.18
Other	0.11	0.11	0.03	0.04
Waste disposed of	0.61	0.83	0.25	0.26
Total waste generated	1.44	1.46	0.74	0.73

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

EU Taxonomy

The EU taxonomy serves as an instrument within the framework of the EU Green Deal by providing a common classification system for sustainable economic activities.

In accordance with the EU Taxonomy Regulation and the supplementary delegated acts, the (Consolidated) Sustainability Statement includes the share of the Group's taxonomy-eligible and taxonomy-aligned sales revenue, capital expenditures (capex) and operating expenditures (opex) for the reporting year 2025, applying the new reporting tables from Delegated Regulation (EU) 2026/73.

The low coverage of BASF's activities in the EU taxonomy and the reporting criteria currently used, at present provide a picture of BASF's potential sustainability contribution that is only of limited informative value.

BASF activities that are not yet covered by the EU taxonomy, and as such, are not relevant under the taxonomy, are reported as taxonomy-non-eligible in accordance with the delegated acts. These include large parts of BASF's activities that may nevertheless be in line with the EU's environmental objectives as they substantially contribute to avoiding $\mathrm{CO}_{2}$ emissions within BASF and for BASF products. We use our TripleS methodology to systematically analyze the environmental performance of all BASF products (see page 157).

To derive the aforementioned financial indicators, we analyzed our product portfolio from our main business and identified the following economic activities under the EU taxonomy's six environmental objectives as being relevant for BASF:

Manufacture of batteries¹
Manufacture of energy efficiency equipment for buildings¹
Manufacture of hydrogen
Manufacture of soda ash
Manufacture of chlorine
Manufacture of organic basic chemicals
Manufacture of anhydrous ammonia
Manufacture of nitric acid
Manufacture of plastics in primary form
Manufacture of active pharmaceutical ingredients (API) or active substances

To avoid double counting, the assignment to an enabling activity is only made if a taxonomy-eligible product or project had not already been included under another activity. BASF products also enable the manufacture of renewable energy technologies as well as low-emission mobility. However, since the EU taxonomy focuses on the manufacture of technologies and thus excludes precursors, we have classified these activities as non-eligible under the EU taxonomy.

We identified additional activities outside of our main business – the production of chemical products – and assessed their materiality in terms of their contribution to sales revenue, capital or operating expenditures. For the 2025 reporting year, we also assessed the economic activity high-efficiency cogeneration of heat/cool and power from fossil gaseous fuels as relevant with respect to the environmental objective of climate change mitigation, and the treatment of hazardous waste as relevant with respect to the environmental objective of pollution prevention and control.

¹ Enabling activities as defined in the EU Taxonomy Regulation.

BASF Report 2025
(Consolidated) Sustainability Statement | 241

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BASF does not report any taxonomy-eligible activities under the environmental objective of climate change adaptation. Firstly, in this way, we avoid double counting with economic activities already included under the environmental objective of climate change mitigation. Secondly, in accordance with the notice issued by the European Commission, a prerequisite for taxonomy eligibility under the adaptation objective is the submission of an investment plan for implementing adaptation solutions. BASF does not currently have any such plan within the meaning of the EU Taxonomy Regulation.

Taxonomy-eligible sales revenue, capital and operating expenditures for all six environmental objectives

We assessed the taxonomy eligibility of our sales revenue based on sales revenue excluding the discontinued coatings business, in line with the presentation in the Consolidated Financial Statements of the BASF Group (see page 334). When taking all six environmental objectives into account, our taxonomy-eligible sales revenue accounted for 12.7% of the total sales revenue in 2025. The largest contributions were from the activities manufacture of plastics in primary form and manufacture of organic basic chemicals, both of which are assigned to the environmental objective of climate change mitigation. Taxonomy-eligible capital expenditures (including acquisitions and excluding goodwill in accordance with the EU Taxonomy Regulation) including expenditures from the discontinued coatings business up to the date of signing the transaction agreement, accounted for 18.8% of the total capital expenditures reported in the Consolidated Financial Statements. Capital expenditures on the manufacture of organic basic chemicals and in the manufacture of plastics in primary form made the greatest contribution. These two activities likewise support the environmental objective of climate change mitigation. Operating expenditures include non-capitalized costs that relate to research and development², maintenance and repair, and short-term lease expenses. We follow the definition of operating expenditures set forth in the EU Taxonomy Regulation; operating expenditures are not disclosed in this form in our Consolidated Financial Statements. The discontinued coatings business was not included for 2025, in line with the procedure for sales revenue. All of the capital and operating expenditures of a production facility with a taxonomy-eligible activity are counted as taxonomy-eligible. Taxonomy-eligible operating expenditures accounted for 13.0% of the total operating expenditures. The largest contributions were from the activities manufacture of organic basic chemicals and manufacture of plastics in primary form. Both activities fall under the objective of climate change mitigation.

Taxonomy-aligned sales revenue, capital and operating expenditures

The taxonomy-eligible activities identified by BASF can be classified as taxonomy-aligned if they make a substantial contribution to one of the six environmental objectives and do no significant harm to other environmental objectives and, at the same time, ensure minimum social safeguards. As in the prior year, the material contribution and the harm to other environmental objectives were reviewed in a three-step process. The first step involved a two-part analysis based on BASF's internal product databases:

The manufacture of products was analyzed with respect to the use of critical substances listed in Appendix 12³ to Commission Delegated Regulation (EU) 2026/73 to ensure that they do not result in significant harm to the EU taxonomy's objective of pollution prevention and control. This also included use in the production process. Experts assessed and documented in each case that no other suitable alternative substances or technologies were available on the market.
Plastics in primary form were analyzed with respect to the share of renewable raw materials in the product. They were only considered further if the share was at least 5% and thus potentially made a substantial contribution to climate change mitigation through partial or complete production from renewable raw materials. Shares allocated using mass balance approaches (see page 235) are not taken into account here because their acceptance under the EU taxonomy has not yet been definitively clarified. For this reason, BASF products based on chemically recycled raw materials were

BASF Report 2025
(Consolidated) Sustainability Statement

not considered further in the assessment either. Mechanical recycling did not play any role for BASF in this context.

In the second step, it was assessed whether the potentially taxonomy‐aligned products make a substantial contribution to climate change mitigation in accordance with the activity‐specific criteria. Among other things, the greenhouse gas emissions of European and non‐European plants to produce soda ash and nitric acid were compared with the average values of the most efficient plants under the EU emissions trading system. For the production of hydrogen, chlorine, ammonia and plastics in primary form, the comparison was with the activity‐specific quantitative criteria, such as the energy or emission intensity of a product. This was based on a digital solution developed by BASF to determine product‐specific CO_{2} emissions (see page 188). With respect to measuring capital expenditures for the manufacture of emission‐free hydrogen at our Ludwigshafen site (construction of a proton exchange membrane electrolyzer), a funding commitment from the German Federal Ministry for Economic Affairs and Energy was taken into account, as was a study on greenhouse gas emissions in hydrogen production carried out by the German environmental agency (Umweltbundesamt, UBA). In addition, we reviewed whether the activity of manufacture of active pharmaceutical ingredients made a substantial contribution to the environmental objective of pollution prevention and control by comparing it with the activity‐specific criteria of the products.

Finally, in the third step of the process, it was assessed whether the products identified caused significant harm to the other environmental objectives. This included an analysis of risks arising from climate change using climate risk and vulnerability assessments. At sites with material climate risk, the existence of adaptation solutions was additionally analyzed and evaluated. The avoidance of significant harm to water and marine resources, biodiversity and ecosystems, and pollution prevention and control were assumed for production plants in Europe based on comprehensive and uniform regulatory requirements and additionally ensured through data queries. The taxonomy alignment of non‐European plants was assessed on a case‐by‐case basis. This was based on joint assessments by local and central experts using the evidence of local production requirements submitted.

The criteria for minimum social safeguards as a further pillar of taxonomy alignment in accordance with Article 18 of the EU Taxonomy Regulation were reviewed for all activities across the BASF Group that involve the four core topics of human rights (including labor rights), corruption/bribery, taxation and fair competition. The review was independent of the step‐by‐step process for the contribution to climate change mitigation and harm to other environmental objectives criteria. Minimum social safeguards were ensured by a systematic, integrated and risk‐based approach to safeguarding our human rights due diligence obligations (see page 290), by global labor standards (see page 250), and by the BASF Supplier Code of Conduct (see page 267), among other things.

Taxonomy‐aligned sales revenue accounted for 1.5% of the total sales revenue defined and reported in the BASF Group's Consolidated Financial Statements in 2025 (see page 334), with the greatest contribution coming from the manufacture of batteries (1.0%). Taxonomy‐aligned capital expenditures (including acquisitions and excluding goodwill in accordance with the EU taxonomy) accounted for 0.5% of the total investments reported in the Consolidated Financial Statements. A substantial contribution of 0.3% was identified with respect to capital expenditures for the manufacture of organic basic chemicals (additions to property, plant and equipment). We also invested in the construction of a proton exchange membrane (PEM) water electrolyzer for the production of emission‐free hydrogen, which was commissioned in 2025. Taxonomy‐aligned operating expenditures accounted for 1.6% of the total operating expenditures, with the largest contribution coming from the economic activity of manufacture of batteries (0.9%). There were no substantial changes to our taxonomy‐aligned sales revenues and

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Further Information

operating expenditures compared to the prior year. The decline in taxonomy-aligned capital expenditures is mainly due to lower investments in the manufacture of batteries.

The taxonomy-aligned portion of BASF's economic activities remains considerably lower than the taxonomy-eligible portion due to various factors. For instance, only a small proportion of plastics in primary form contain renewable raw materials in an amount above the threshold value (5%). The proportion of taxonomy-aligned activities is additionally reduced by the fact that many plants exceed the benchmarks used by the EU taxonomy. For example, the use of renewable energies is disregarded as a result of the strict requirements for calculating emissions in European emissions trading. Among other things, our steam cracker investment at our Zhanjiang, China site was assessed as not taxonomy-aligned even though it contributes to avoiding a considerable amount of $\mathrm{CO}_{2}$ emissions. In addition, plants that are not subject to emissions trading and thus cannot be assessed using the specified criteria were generally classified as not taxonomy-aligned. For the assessed economic activity of manufacture of active pharmaceutical ingredients, the focus of taxonomy alignment is on newly developed substances that constitute a suitable replacement for existing products that do not meet the criteria for biodegradability. This resulted in established active ingredients with multiple benefits for human health being assessed as not taxonomy-aligned.

For more information on sales revenues, see Note 7 to the Consolidated Financial Statements from page 334 onward. For more information on capital expenditures, see Note 14 to the Consolidated Financial Statements from page 354 onward.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

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EU Taxonomy indicators – 2025 summary

Financial year	2025				Breakdown by environmental objectives of Taxonomy-aligned activities
	Total	Proportion of Taxonomy-eligible activities	Taxonomy-aligned activities	Proportion of Taxonomy-aligned activities	Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Proportion of enabling activities	Proportion of transitional activities	Not assessed activities considered non-material	Taxonomy-aligned activities in previous financial year (2024)	Proportion of Taxonomy-aligned activities in previous financial year (2024)
	Million €	In %	Million €	In %	In %	In %	In %	In %	In %	In %	In %	In %	In %	Million €	In %
Sales revenuea	59,657	12.7	905	1.5	1.5	-	-	-	-	-	1.1	0.4	0.8	753	1.2
Capex	4,684	18.8	22	0.5	0.5	-	-	-	-	-	0.1	0.3	4.9	244	3.7
Opere	4,489	13.0	74	1.6	1.6	-	-	-	-	-	0.9	0.7	2.7	79	1.7

a In accordance with IFRS® Accounting Standards, the discontinued coatings business was not included in sales revenues and operating expenditures for 2025.

EU Taxonomy indicators – 2025 sales revenuea

Financial year	2025				Environmental objective of Taxonomy-aligned activities
	Code	Proportion of Taxonomy-eligible sales revenue	Taxonomy-aligned sales revenue	Proportion of Taxonomy-aligned sales revenue	Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Enabling activity	Transitional activity	Proportion of Taxonomy-aligned in Taxonomy-eligible
		In %	Million €	In %	In %	In %	In %	In %	In %	In %	E	T	In %
Manufacture of batteries	CCM 3.4	1.0	618	1.0	1.0	-	-	-	-	-	E	-	100.0
Manufacture of energy efficiency equipment for buildings	CCM 3.5	0.1	41	0.1	0.1	-	-	-	-	-	E	-	100.0
Manufacture of hydrogen	CCM 3.10	0.0	3	0.0	0.0	-	-	-	-	-	-	-	39.4
Manufacture of soda ash	CCM 3.12	0.0	-	-	-	-	-	-	-	-	-	T	-
Manufacture of chlorine	CCM 3.13	0.0	-	-	-	-	-	-	-	-	-	T	-
Manufacture of organic basic chemicals	CCM 3.14	3.9	202	0.3	0.3	-	-	-	-	-	-	T	8.6
Manufacture of anhydrous ammonia	CCM 3.15	0.3	-	-	-	-	-	-	-	-	-	T	-
Manufacture of nitric acid	CCM 3.16	0.2	-	-	-	-	-	-	-	-	-	T	-
Manufacture of plastics in primary form	CCM 3.17	6.8	41	0.1	0.1	-	-	-	-	-	-	T	1.0
Manufacture of active pharmaceutical ingredients (API) or active substances	PPC 1.1	0.3	-	-	-	-	-	-	-	-	-	-	-
Sum of alignment per objective					1.5
Total sales revenue		12.7	905	1.5	1.5	-	-	-	-	-			11.9

a In accordance with IFRS® Accounting Standards, the discontinued coatings business was not included for 2025.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

EU Taxonomy indicators – 2025 capital expenditures (capex)

Financial year	2025				Environmental objective of Taxonomy-aligned activities
	Code	Proportion of Taxonomy-eligible capex	Taxonomy-aligned capex	Proportion of Taxonomy-aligned capex	Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Enabling activity	Transitional activity	Proportion of Taxonomy-aligned in Taxonomy-eligible
		In %	Million €	In %	In %	In %	In %	In %	In %	In %	E	T	In %
Manufacture of batteries	CCM 3.4	0.1	4	0.1	0.1	-	-	-	-	-	E	-	100.0
Manufacture of energy efficiency equipment for buildings	CCM 3.5	0.0	0	0.0	0.0						E	-	100.0
Manufacture of hydrogen	CCM 3.10	0.2	6	0.1	0.1	-	-	-	-	-	-	-	50.6
Manufacture of soda ash	CCM 3.12	0.0	-	-	-	-	-	-	-	-	-	T	-
Manufacture of chlorine	CCM 3.13	0.0	-	-	-	-	-	-	-	-	-	T	-
Manufacture of organic basic chemicals	CCM 3.14	10.9	12	0.3	0.3	-	-	-	-	-	-	T	2.4
Manufacture of anhydrous ammonia	CCM 3.15	0.3	-	-	-	-	-	-	-	-	-	T	-
Manufacture of nitric acid	CCM 3.16	0.1	-	-	-	-	-	-	-	-	-	T	-
Manufacture of plastics in primary form	CCM 3.17	3.0	0	0.0	0.0	-	-	-	-	-	-	T	0.0
High-efficiency cogeneration of heat/cool and power from fossil gaseous fuels	CCM 4.30	1.7	-	-	-	-	-	-	-	-	-	T	-
Manufacture of active pharmaceutical ingredients (API) or active substances	PPC 1.1	0.7	-	-	-	-	-	-	-	-	-	-	-
Treatment of hazardous waste	PPC 2.2	1.9	-	-	-	-	-	-	-	-	-	-	-
Sum of alignment per objective					0.5
Total capex		18.8	22	0.5	0.5	-	-	-	-	-			2.4

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

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Further Information

EU Taxonomy indicators – 2025 operating expenditures (opex) $^{a}$

Financial year	2025				Environmental objective of Taxonomy-aligned activities
	Code	Proportion of Taxonomy-eligible opex	Taxonomy-aligned opex	Proportion of Taxonomy-aligned opex	Climate Change Mitigation	Climate Change Adaptation	Water	Circular Economy	Pollution	Biodiversity	Enabling activity	Transitional activity	Proportion of Taxonomy-aligned in Taxonomy-eligible
		In %	Million €	In %	In %	In %	In %	In %	In %	In %	E	T	In %
Manufacture of batteries	CCM 3.4	0.9	40	0.9	0.9	–	–	–	–	–	E	–	99.9
Manufacture of energy efficiency equipment for buildings	CCM 3.5	0.0	1	0.0	0.0	–	–	–	–	–	E	–	100.0
Manufacture of hydrogen	CCM 3.10	0.7	–	–	–	–	–	–	–	–	–	–	–
Manufacture of soda ash	CCM 3.12	0.2	–	–	–	–	–	–	–	–	–	T	–
Manufacture of chlorine	CCM 3.13	0.6	–	–	–	–	–	–	–	–	–	T	–
Manufacture of organic basic chemicals	CCM 3.14	4.5	29	0.6	0.6	–	–	–	–	–	–	T	14.3
Manufacture of anhydrous ammonia	CCM 3.15	0.5	–	–	–	–	–	–	–	–	–	T	–
Manufacture of nitric acid	CCM 3.16	0.2	–	–	–	–	–	–	–	–	–	T	–
Manufacture of plastics in primary form	CCM 3.17	3.8	3	0.1	0.1	–	–	–	–	–	–	T	1.7
Manufacture of active pharmaceutical ingredients (API) or active substances	PPC 1.1	1.5	–	–	–	–	–	–	–	–	–	–	–
Sum of alignment per objective					1.6
Total opex		13.0	74	1.6	1.6	–	–	–	–	–			12.6

$^{a}$ In accordance with IFRS® Accounting Standards, the discontinued coatings business was not included for 2025.

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Social

S1 Own Workforce

ESRS S1

Our employees are crucial to BASF’s success. We want to attract talented employees, support them in their development and retain them for the long term – in a working environment that inspires and connects. This is founded on an open corporate culture of mutual trust, respect and dedication to top performance.

ESRS 2 SBM-3 ESRS 2 IRO-1 S1-6

This chapter refers to employees who were employed in a company within the BASF Group’s scope of consolidation as of December 31, 2025. We report figures on our employees in the Metrics section from page 261 onward. In our double materiality assessment (see page 163), the Own Workforce topic was defined as material. In this context, we identified material impacts on employees and risks and opportunities for BASF (see the following table). We explain the associated policies and measures from pages 249 and 256 onward. We systematically record opportunities and risks as part of our general opportunity and risk management (for additional information, see page 90 onward).

Results of the double materiality assessment for S1 Own Workforce: Impacts

Impact	Evaluation	Position in the value chain	Description
Potential health and safety risk	Negative, potential	BASF’s own operations	Our employees are exposed to a potential health and safety risk if they work in laboratories and production plants and handle chemicals, including hazardous substances. This is particularly the case if occupational health and safety instructions or regulations in our production processes are not followed.
Promoting health and safety awareness	Positive, potential	BASF’s own operations	High standards of occupational safety and health have a positive effect on the well-being, safety and resilience of employees. Health programs and safety training enable us to promote safety and health awareness that extends beyond the working environment.
Adequate and competitive compensation	Positive	BASF’s own operations	Our market-oriented compensation and corresponding additional benefits create attractive working conditions for our employees and make a positive contribution to society.

BASF Report 2025

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At a Glance

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Results of the double materiality assessment for S1 Own Workforce: Risks and opportunities

Risks and opportunities	Evaluation	Description
Loss of critical skills and competencies	Negative	Demographic and technological change, changing competence profiles and intensified competition for skilled employees and leaders can lead to a loss of skills and knowledge in key roles within our workforce or affect our ability to adequately and quickly develop them.
Unlocking potential through strong leadership	Positive	We promote excellent leadership through targeted development offers for leaders at all levels. Leaders can positively influence the engagement of their employees and, together with their teams, contribute productively and efficiently to the implementation of our strategic corporate targets.
Challenges for engagement and retaining skilled employees	Negative	The current economic situation and any resulting structural adjustments at BASF can lead to uncertainty among employees. This poses challenges for the company, for example in terms of maintaining employee engagement. Any supposed decline in the attractiveness of BASF as an employer can make it more difficult to recruit appropriately qualified specialists and managers in global competition.

Strategy and governance

S1-1 ESRS 2 SBM-2 ESRS 2 SBM-3

The "Winning Ways" strategy is our plan for BASF's long-term business success (see page 15). As part of this strategy, we are driving development toward a performance culture. After all, we can only achieve BASF's targets with a high level of engagement from our skilled employees and leaders. With our adequate and competitive compensation, we want to contribute to attractive working conditions at BASF and thus attract and retain engaged employees.

Feedback from our employees or their representatives is obtained via various formats and can thus be considered in the development of our strategic direction (see pages 254, 258 and 260). For example, internal employee surveys indicated that processes were perceived to be too complex or bureaucratic. Also therefore, in our strategy we put emphasis on accelerating and becoming more agile.

The health and safety of our employees is our highest priority and forms the basis of our corporate responsibility and our license to operate. However, working in a chemical company entails potential health and safety hazards, which we address with policies and actions (see page 251).

> For more information on our strategies and actions, see basf.com/employees and basf.com/responsibility_for_employees

Human rights due diligence

S1-1 ESRS 2 SBM-2

An integral part of our business model and our strategy is human rights due diligence. We see human rights due diligence as an important, comprehensive and continuous task that we can only fulfill through collaboration across the entire company. We are committed to respecting internationally recognized human rights in our own operations and promoting them along our value chains. In our own operations, we are strictly careful not to cause or contribute to human rights violations. We report on how we act in accordance with responsible corporate governance in the chapter G1 Business Conduct see (page 289).

As a global company with more than 100,000 employees worldwide, we face certain inherent risks related to international labor standards, particularly in countries with higher human rights risks.

BASF Report 2025

(Consolidated) Sustainability Statement

In a Group-wide requirement, we outline our commitment to respecting internationally recognized labor standards in our interactions with employees. We have established fundamental principles and rights at work that provide a binding, globally applicable framework for fair and responsible working conditions across our business activities (see graphic):

Thematic and Social Change

Thematic

The

These principles apply across BASF worldwide and fall under the responsibility of Corporate Human Resources, which reports directly to the Chairman of the Board of Executive Directors. We expect all leaders and employees to comply with these principles and regularly provide internal target group-specific training on labor standards. Our risk-based management process systematically compares BASF's international labor standards with the respective national legislation. In the event of discrepancies between national law and BASF's international labor standards, we always strive to uphold the higher standard in all areas. If conflicts with national law arise, we aim to act in line with our values and internationally recognized principles without violating the law of the country concerned (see page 255).

Individual components of our international labor standards requirements are embedded in the compliance management audits conducted by the Corporate Audit unit (see page 296). In addition, audits are conducted on specific topics.

Below is a more in-depth description of some of the fundamental principles and rights regarding international labor standards at BASF:

No child labor and no forced labor

BASF strictly prohibits all forms of child labor or forced labor, including slavery and human trafficking. This is also specified in BASF Group's Policy Statement on Human Rights. These topics are part of our analyses and requirements, because we operate in countries where forms of child and forced labor exist. In 2025, there were no indications of individuals in our company being subjected to forced labor or child labor. Our disclosures on any incidents, complaints and severe human rights impacts can be found in the Metrics section (see page 263).

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No discrimination or harassment

BASF stands for respectful and fair cooperation. Any form of discrimination or degradation – including sexual harassment – based on age, ethnic background, skin color, gender, sexual orientation, gender identity or expression, national origin, religion, disability, genetic information, personal characteristics and preferences, or any other characteristic protected by law, violates our global Code of Conduct.

This governs all our employment decisions such as recruiting, hiring, promotions, benefits, disciplinary actions or terminations.

BASF is committed to equal opportunities and fosters an inclusive work environment and offers all employees fair working conditions and support in the event of any possible concerns. Our Policy Statement on Human Rights underlines our commitment to a workplace that is characterized by trust, respect and appreciation.

We are aware that certain groups of individuals may be exposed to an increased risk of disadvantage in their working life. We follow the United Nations and the International Labour Organization, which identifies people with a migrant background, members of minorities, women, nonemployee workers, people with disabilities, underage employees and people with family care responsibilities among the groups that are particularly at risk of discrimination.

If potential cases of discrimination come to our attention, for example via our grievance channels, we are committed to act immediately and take the appropriate remedial actions (see pages 255 and 263).

When identifying leadership talents, we also take into account the promotion and appreciation of diversity, for example in the case of women. We are committed to increase the proportion of women in leadership positions worldwide to 30% by 2030. We strive to always act in accordance with the applicable local laws. As of December 31, 2025, the total proportion of women working in the BASF Group worldwide was 27.3% (2024: 27.1%). The global proportion of women in leadership positions with disciplinary responsibility as of December 31, 2025 was 29.9% (2024: 29.3%). BASF management can use a global dashboard to access information on the proportion of women in management positions at any time. Additionally, the current status is presented at Board meetings.

» For more information on our activities relating to diversity, equity and inclusion, see basf.com/diversity_and_inclusion and basf.com/diversity

Information on the effective recognition of the rights to freedom of association and collective bargaining is provided from page 254 onward.

» For more information on our Policy Statement on Human Rights and our human rights commitment and approach, see basf.com/humanrights; for more information on our working conditions, see basf.com/working_conditions

In the following, we explain the material topics on the basis of the results of our double materiality assessment (see page 249) as well as BASF’s relevant policies and requirements.

Occupational safety and health

S1-1 S1-14

We are aware of the great responsibility toward our employees that we bear as an employer. In order to meet this requirement, the Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality establishes globally binding policies for occupational safety and health, as well as continuously reviewing and developing these policies.

BASF Report 2025
(Consolidated) Sustainability Statement

These policies are based on the guiding principles of the International Council of Chemical Associations' (ICCA) global Responsible Care^{®} initiative and underline our target of protecting the safety, health and life of all employees in the workplace.

Our safety and health management includes all employees worldwide. Our sites and Group companies are responsible for implementing and complying with both the Group-wide and local guidelines. They are supported in this task by global networks of experts.

Our policies are continuously reviewed and further developed through comprehensive management and control systems, with the participation of our own experts for occupational safety and health, as well as global experts and government institutions. Through this approach, we aim to ensure that our guidelines are implemented consistently and effectively and that legal and regulatory requirements are complied with. By means of regular audits, the Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality monitors compliance with these guidelines. Chapter E2 Pollution Reduction reports on how BASF ensures the effectiveness of the requirements in the context of the Responsible Care Management System (see page 201).

Due to our many years of expertise in the field of occupational safety and health, we are aware of the significant potential negative impacts, especially for employees who work with hazardous substances in laboratories or production plants or operate complex systems and machines. We have set ourselves clear targets to reduce the potential negative impacts for our employees to a minimum (see page 260). We have comprehensive actions in place for this, which are described from page 257 onward. Our high standards of occupational safety and health, as well as our health programs and safety training can have a positive impact beyond the professional environment.

For more information on occupational medicine and health, see basf.com/health and for more information on occupational safety, see basf.com/occupational_safety

S1-1

The Corporate Center unit Corporate Human Resources provides a globally consistent framework in the form of policies and requirements on the following topics: CompensationContinuous skill development and employee performance feedbackLeadership and leadership feedback instrumentsTalent acquisition and positioning of BASF as an employer brandInternational labor standards at BASFEmployee survey

The format of the employee survey is described in more detail from page 260 onward. This survey is our central tool for obtaining feedback from employees. It helps us monitor the effective implementation of our requirements regarding development, talent acquisition and retention, leadership, feedback on the working environment and corporate culture, and the current status of employee engagement. We explain how the other policies are monitored in the context of the following sections.

The policies and requirements mentioned here govern the topics described in the following sections. General information on how we make our policies available and how stakeholders are involved can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward).

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Adequate and competitive compensation

We offer our employees adequate, performance-related and market-oriented compensation, supplemented by attractive additional benefits. Compensation is based on global compensation principles according to position and function, market environment, personal performance and the success of BASF or the respective BASF unit. Among other things, these serve to ensure that equivalent positions are compensated in a comparable way regardless of gender, ethnic background or any other characteristics, and that the local market conditions of the respective site and differences in employee performance are considered accordingly. We describe the review of our compensation levels, including on the basis of external market data, from page 257 onward.

As a rule, compensation comprises fixed and variable components as well as benefits. In many countries and companies, our additional benefits exceed legal requirements and include, for example, company pension benefits, supplementary health insurance and share programs. Our global compensation principles help ensure that we offer fair and competitive compensation for employees.

Loss of critical skills and competencies

Attracting and retaining skilled employees is crucial for our success. Technological change is leading to new demands being placed on our employees. Demographic change is also increasing the effort involved in procuring skilled employees. These aspects give rise to a risk for BASF that skill gaps may arise in the workforce and positions could remain unfilled.

To counter this risk, we rely on continuous learning and development. In this way, we aim to further improve the skills and knowledge of our employees, respond to changing requirements and close skill gaps.

In employee development, we follow the principle that everyone has opportunities and is supported in expanding their expertise and experience through learning. At BASF, any discriminatory practices that hinder the personal or professional development of employees are prohibited. Learning takes place according to individual and job-specific requirements and can be accomplished in different ways: individual on-the-job learning, social learning through exchange with others or formal learning in settings such as training and further education courses.

Unlocking potential through strong leadership

Our leaders play an important role in achieving our ambitious targets and making our business a success. For this reason, we expect our leaders to lead their teams and themselves accordingly and to create a competitive advantage for BASF. This requires that they act in line with our CORE values, show and promote our Winning Behaviors of the "Winning Ways" strategy, and acquire and leverage essential leadership skills. This is why, when selecting and developing our leaders, we pay attention to their handling of our values, as well as their general behavior and skills. In addition, we regularly obtain leadership feedback, giving our managers the opportunity to reflect on and improve their behavior as leaders. Furthermore, we also expect our leaders to create an inclusive working environment in accordance with local legislation.

Challenges for engagement and retaining skilled employees

BASF is faced with the challenge of attracting sufficiently qualified skilled employees and leaders and maintaining a high level of engagement among the workforce, even in economically tense times. This is made more difficult by structural adjustments and the general economic situation, which can have a negative impact on the company's attractiveness as an employer and identification with BASF. In addition, technological change is leading to new demands being placed on our employees.

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Alongside global competition for skilled workers – particularly in IT, artificial intelligence, manufacturing, engineering and the sciences – and demographic change, in regions such as North America and Europe, these developments pose a risk for BASF of not being able to fill vacancies or to do so in a timely manner.

To address these challenges, BASF is pursuing the approach of consistently positioning itself as an attractive employer worldwide and thus to attract and retain qualified employees for the company. We implement appropriate measures flexibly, tailored to local conditions (see page 259).

Our international labor standards should help to provide employees with orientation and security. They define what fair and responsible working conditions look like at our company – regardless of the site or function. These principles and rights include, for example, clear working conditions, fair and transparent processes for disciplinary actions and dismissals, protection against discrimination and harassment, as well as recognition of the right to freedom of association, collective bargaining and opportunities for participation in the company. We monitor compliance with these principles through our risk-based management process (see page 250). For more details on this process and how employees and their representatives are generally involved in shaping their workplace, see page 254 onward.

Engaging with employees and their employee representatives

S1-2

Openness is one of BASF’s corporate values. That is why stakeholder dialog is based on honesty, mutual respect and trust.

Trust-based cooperation with employee representatives is an essential component of our corporate culture (see page 20). Through open and continuous dialog, we create the foundation for balancing the interests of BASF and our employees, even in challenging situations. Dialog formats differ depending on region and the subject matter of the discussion. There are dedicated committees that discuss topics identified as material as defined by the European Sustainability Reporting Standards (ESRS). For example, the BASF Works Council Europe and the BASF Group Works Council are informed about the results of the double materiality assessment. Employee representatives are involved according to local legal conditions. Dialog results can be taken into account when designing and implementing our measures, which also address the material impacts in this area.

Operational responsibility for the involvement of and dialog with employee representatives lies with the management of the relevant Group company or its equivalent depending on the company’s legal form. BASF maintains constructive relationships with employee representatives which is reflected in trust-based cooperation. BASF provides the necessary human and financial resources for this dialog. There are numerous agreements with employee representatives that are applied according to local conditions in countries or Group companies. By aligning committee structures with local and regional situations, we take into account the different challenges and legal conditions for each site. In this context, we address a wide range of topics in areas such as working conditions, health and occupational safety. In addition to regular meetings in which employee representatives are informed of general topics such as the current economic situation, meetings are held on a case-by-case basis. Involving employee representatives gives BASF deeper insight into employees’ key interests and perspectives. We consider agreements such as the successful introduction of the performance management system in 2025 (see page 30), which involved representatives of the employees and the respective companies, to be a positive result of this dialog.

BASF Report 2025
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In line with local conditions, our employees are entitled to freely form, join and support legally recognized unions or other forms of employee representation. These organizations are authorized to represent employees' interests, for example in matters such as collective bargaining. BASF expressly supports these rights. We have embedded our commitment to freedom of association and the right to collective bargaining in BASF's international labor standards (see page 250). We do not tolerate any actions intended to disadvantage, intimidate or discourage employees because of their trade union activities. BASF is also committed to social dialog with employee representatives in countries where freedom of association is not guaranteed under national law to the same extent as under European legal systems. In such cases, individual Group companies adopt alternative dialog formats, such as informal meetings, that provide employees with opportunities for exchange.

In the case of organizational changes, for example the elimination of positions due to restructurings, or in the case of other co-determination-relevant topics, we involve employee representatives in consultation on socially responsible solutions, in accordance with existing participation rights. This would also apply if structural adjustments or other adverse effects on employees were to arise due to our transition to climate neutrality. We also rely on our leaders to explain and support all organizational changes or changes in structural measures. BASF supports affected employees in finding other positions within our company and with the development of the necessary skills. Our aim is to act in accordance with the relevant legal regulations and to observe company conditions as well as existing agreements.

We involve employees in corporate processes by offering dialog on company topics via various internal communication channels. We use these offerings to inform them of upcoming organizational changes and engage them in relevant discussions. For example, we generally hold a quarterly global information event with members of the Board of Executive Directors, in which employees can participate on-site or virtually. Following a presentation of strategically important content by the Board of Executive Directors, employees have the opportunity to ask questions.

In order to actively involve employees in shaping their working environment, we rely on multiple feedback instruments, which we explain on page 258 and 260.

In accordance with local legal conditions, we also offer employees the opportunity to get involved in one of our many Employee Resource Groups, which are organized voluntarily by interested colleagues. This includes groups of individuals who potentially experience more frequent discrimination. For example, there is a global employee resource group for women at BASF and different local employee resource groups for the LGBTQI+ community and people with disabilities. All interested employees can get involved in these networks.

Processes to remediate negative impacts and channels for own workers to raise concerns S1-3

The BASF Compliance Hotline as a grievance mechanism is not only open to all BASF employees, but also to external stakeholders, especially workers in our value chains. For more information on how the problems raised and addressed via this hotline are tracked and monitored, see page 293. In addition to our grievance mechanisms, employees can reach out to their leaders, their compliance officers or the human resources department as well as their respective employee representatives to ask questions or raise concerns about potential misconduct.

BASF Report 2025

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Further Information

Our compliance training program, which includes regular global and local information campaigns as well as details about our Compliance Hotline, is mandatory for all employees. Training and information offerings that provide specific knowledge on human rights and international labor standards to various target groups worldwide also cover the topic of compliance and the BASF Compliance Hotline.

Actions

S1-4

We address the impacts, risks and opportunities that we identified as material through various actions, which we outline below using the subtopics material to this chapter. We employ the following key actions:

Safety and health training for employees
Risk assessments and risk analyses as well as incident investigations supplemented by root cause analyses
Global health management: e.g., BASF health checks
Annual compensation level review
Feedback talks between employees and leaders
Leadership development and feedback
Annual measurement of engagement in the employee survey

The Corporate Center units Corporate Environmental Protection, Health, Safety & Quality and Corporate Human Resources provide the conceptual framework. Additional resources to implement the actions are usually made available by the Global Business Services unit as well as teams working in the operating divisions and at our sites. For example, health initiatives as well as local recruiting activities and education programs are carried out at the respective sites.

Occupational safety and health

We use risk-based methods to prevent potentially negative impacts on the safety and health of our employees. These include risk assessments and risk analyses, guidelines for safe behavior in the workplace, formalized incident investigations supplemented by root cause analyses, structured assignment and implementation of corrective measures as well as a transparent exchange of experience within our global network. We also seek dialog with government institutions and are actively involved in external occupational safety initiatives and networks around the world led, for example, by the European Chemical Industry Council (CEFIC) or national associations such as the German Chemical Industry Association and the American Chemistry Council. For this reason, we are constantly refining and enhancing our global requirements and training regarding occupational safety. In addition to legally required training, BASF Group employees receive additional and complementary safety and health training tailored specifically to their role, working environment and location. For example, production employees receive regular training in the safe handling of chemicals, the correct selection and use of personal protective equipment, and emergency management.

Across all BASF divisions, units work regularly together to develop effective campaigns that are intended to continuously raise awareness of specific safety issues, with the clear goal of reducing or preventing incidents and injuries at work. For example, in the 2025 business year, Global Engineering Services conducted a campaign with a focus on activities in plant engineering that are associated with a higher risk for employees. The aim of the campaign was to raise awareness of potential hazards and to significantly reduce the risk of incidents at work through targeted training. Leaders have a decisive role model function in safety culture, and bear a special responsibility for this topic in production. They regularly receive specific training in order to fulfill this task and to further strengthen the safety culture in the company.

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

BASF thoroughly investigates incidents, analyzes the root causes, and uses the findings to develop appropriate mitigation measures and achieve continuous improvements. If increased risks for employees are identified, we implement the appropriate corrective and mitigation actions.

These actions are an important part of our occupational health and safety management strategy (see the following section) to promote the safety, health and well-being of our employees. Through them, we want to have a positive influence on the physical and mental health as well as the long-term performance of our employees. This potential positive impact may also extend beyond the workplace.

» For more information on process safety, see basf.com/process_safety and for more information on occupational safety, see basf.com/occupational_safety

BASF's global corporate health management serves to promote and maintain the long-term and holistic health and performance of our employees. With the BASF health check, we offer our employees a regular, thorough medical examination with extensive diagnostic measures. An essential component is the detailed medical consultation with a special focus on cardiovascular risk factors, which can be significantly influenced by lifestyle. With this program, we want to support employees in actively protecting and improving their health in the long term. In addition, depending on the region, employees may have access to other medical services that provide additional support for their individual health needs. In 2025, as in the previous year, our focus was on mental health. At the center of the global health initiative was the Mental Health Alliance, an information and self-learning platform that imparts knowledge on mental health, prevention and the destigmatization of mental illness. We also offer employees a wide range of materials, training courses and individual support to promote mental health in the workplace and in the personal sphere. In addition, we are focusing more strongly on the topic of women's health worldwide and are developing specific offers to provide employees with targeted support at every stage of their lives, to strengthen their health and to maintain their long-term work ability. Another key focus in 2025 was influenza prevention. BASF employees had the opportunity to be vaccinated against the seasonal flu at numerous sites worldwide. At the Ludwigshafen site in Germany, for example, more than 4,300 employees participated in the influenza vaccination campaign.

» For more information on occupational health and health management, see basf.com/health

Adequate and competitive compensation

Adequate wages are an important component of the package we offer to employees that makes us a compelling choice as employer. We review our compensation levels worldwide annually in close cooperation with local units, including on the basis of external market data. This allows us to aim for market-oriented and adequate compensation in the respective countries or markets and to analyze the effectiveness of adjustments to our compensation levels as part of the process.

BASF Report 2025
(Consolidated) Sustainability Statement

In addition, we promote adequate and competitive compensation through further processes and offers. Based on defined, globally uniform criteria, positions are classified into BASF job grades, which form the basis for compensation, independent of the individual. The classification is based on the requirements of the relevant function. In this way, we want to make positions globally comparable and create the basis for compensation commensurate with function. In numerous Group companies, our “plus” share program ensures employees' long-term participation in the company's success through incentive shares. In addition, we have introduced an enhanced performance management system in 2025 that provides a closer link between incentives and unit-specific achievements (see page 29).

We regularly review whether employees are receiving adequate wages as defined by the ESRS. We report the result of this review in the Metrics section (see page 261).

Loss of critical skills and competencies

Employee development is organized in collaboration with the respective leader. The central element here is the regular dialog in feedback talks (before 2025: employee dialog) between employee and leader, which take place worldwide and at least once a year. Here, performance, behavior and development are discussed together. On the one hand, it is about reflecting on the past year, and on the other hand, discussing expectations. Leaders and employees can agree development goals and individual learning needs. Here, learning goals should be aligned with the specific job requirements and the employee's development needs. Learning can take place in different formats and in different locations, thus helping to further develop important competencies in the company.

In addition, BASF provides global access to a wide range of training offerings on various learning platforms to support employees in expanding their skills and thus acquiring additional competencies. Furthermore, numerous local and specialized academies offer training courses within the operating divisions and service units. An example of this is the expanded offer of the Data & AI Academy, which helps our employees to develop their understanding of data and artificial intelligence (AI) and leverage it in their work processes. The increased use of AI in our databases also makes it easier for employees to find information and build up valuable knowledge.

In the future, leaders and employees will be able to gain easier insight into the skills and competence gaps of their teams. To this end, BASF integrated AI-supported skills and competencies management into existing HR systems in selected areas in 2025. This transparency makes it possible, for example, to specifically identify qualification requirements and to allocate individual training offerings tailored to the needs of employees and teams.

We monitor the effectiveness of our actions by conducting regular surveys among our employees (see page 260).

Unlocking potential through strong leadership

With a wide range of targeted training and development opportunities for leaders at all levels, we want to contribute to the competitiveness of BASF in the long term. We provide leaders with these opportunities for each phase of their career as well as various formats that enable them to learn from each other and from external experts. We thus offer our leaders a mixture of essential standard training courses, as well as varying focus topics and on-demand offerings.

We aim to develop leaders who manage their teams with professional competence, positivity, empathy and trust, and in this way, create a competitive advantage for BASF. In 2025, we therefore offered inspiration and learning formats for senior executives and talents identified as potential leaders under the focus topic of feedback culture, for example on how open and constructive feedback can motivate employees to perform at a high level and promote growth. Furthermore, all leaders were offered training courses designed to promote both the ability to give feedback and how to consequently handle both strong and low performance. Regular feedback plays an important role in the individual development of

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leaders. In 2025, the majority of our leaders with disciplinary responsibility received feedback on their leadership behavior as well as development advice as part of the global leadership feedback survey.

To identify and further develop leadership talents at an early stage, BASF also employs potential assessments. In this way, we want to identify potential leaders and develop them in a targeted manner.

Challenges for engagement and retaining skilled employees

Through regular global surveys of our employees, we want to find out how they perceive BASF. Feedback from this survey and from our dialog with employee representatives gives us specific indications as to where we can make further improvements (see page 260).

The shift toward a Winning Culture (see page 20) will be a decisive factor in the successful implementation of our "Winning Ways" strategy. As our business grows, we create the foundation for job security and attractiveness as an employer. In this way, we also want to strengthen the engagement of our workforce and attract and retain skilled workers. The Winning Behaviors, i.e., behavior for success, pave the way for this. The results of a global survey in 2025 on the implementation of the strategy show that employees have already developed a high level of understanding of these behaviors.

In light of the global competition for suitable skilled employees and leaders, we maintain a range of processes and projects to attract new employees. For example, in 2025 we launched a campaign in Germany, Brazil, China, India and the United States to more effectively reach and attract talent to BASF. To meet our need for highly demanded employees, we run various local events and programs during the business year as part of our employer branding. These include our trainee program with a focus on the use of artificial intelligence and the Top Start program, with which we attract future leaders and train them specifically at BASF. Training skilled employees is a central investment in BASF's competitiveness. This is why we have been counting on developing our own skilled employees for many years and are particularly committed to our apprenticeship programs in Germany. To continue filling our apprenticeship positions with qualified candidates in the future, we provide school students in Germany with insight into the various apprenticeship options at BASF during their career orientation phase. At production sites in the United States, we provide up to three years of dual-track vocational training under the North American Apprenticeship Development Program (NAADP). In addition, we implemented the dual study model at various German locations. Our actions to recruit skilled employees are based on the principle of nondiscrimination (see page 251).

Global targets

S1-5

We set ourselves concrete global targets regarding the potential positive and negative impacts on the health and safety of all employees, the progress of which we measure annually.

BASF Report 2025
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We measure our performance in the area of occupational safety by the number of High Severity Work Process Related Injuries (HSI) worldwide. We have set ourselves the target of a global HSI rate of no more than 0.05 High Severity Work Process Related injuries per 200,000 working hours by 2030.² The introductory year 2023 serves as a reference value at 0.03. In 2025, the HSI rate was 0.01 (2024: 0.02). We have once again achieved our target. The target is based on the assumption that all work-related injuries are documented completely and correctly. There is a potential limitation due to possible delays in the reporting and documentation of work-related injuries. For more information on the collection of data on occupational health and safety, see the chapter General Information on page 149. Through regular Responsible Care audits, which check compliance with internal and legal requirements in the field of occupational safety, we help to prevent work-related injuries (see page 201).

Our performance in terms of health is measured by the Health Performance Index (HPI). The HPI defines and measures our efforts to promote and maintain the health, performance and well-being of all employees and is calculated on a scale from 0.0 to 1.0 (maximum index value). It consists of five equally weighted components: recognized occupational diseases, medical emergency preparedness, first aid, preventive medicine and health promotion. Each component accounts for 20% of the overall result. Our target is an annual HPI of 0.9 (base year 2018: 0.96). We once again achieved this in 2025 with an HPI of 0.97 (2024: 0.97). The target is based on the assumption that the health data collected is representative of the workforce, that participation in the voluntary health programs is far-reaching and that its effects on the well-being of employees are measurable and significant. As not all health aspects can be mapped and external influences can falsify the results, there are potential restrictions. The target of the HPI is reviewed by regular Responsible Care audits in the field of occupational health. The audits focus on compliance with medical standards and health. Each site of a relevant size or greater is audited at regular intervals. The audit report documents the findings as well as the agreed corrective actions with clearly defined deadlines, the implementation of which is continuously monitored. If necessary, the specialist units can be actively involved in consultation and supporting implementation of the measures. Furthermore, HPI is monitored in several stages through analyses of incident and illness data as well as targeted measures to reduce the health risk in the future. To further develop the target, BASF’s global network of physicians will be involved.

BASF continuously derives measures on the basis of the HPI and HSI to improve occupational safety and health in a targeted manner. This includes the analysis of incidents, first aid training and safety campaigns that can raise awareness of safety and help employees to react appropriately in an emergency situation, both in their professional and private lives.

In addition, we consider employee engagement to be a decisive indicator of the success of our actions. To verify this, we rely on regularly obtaining candid and constructive feedback. All employees are invited on a regular basis to give feedback on their working environment and the corporate culture as part of our employee survey. In the employee survey³, BASF measures employee engagement based on five central questions. Our Engagement Index derived from this is intended to clarify whether employees wish to contribute to the objectives of BASF, enjoy and are proud of working with us, whether they recommend BASF as an employer, and whether they would stay with us if they received a similar offer from another company. These questions help us identify potential for improvement. They were developed by BASF based on an analysis of scientific findings and benchmarks. In accordance with co-determination rights, we engage with employee representatives in the course of approving the questionnaire regarding the configuration of the Engagement Index.

² Includes BASF employees, agency workers and contractors. We are reviewing the extent to which we can take account of the definition of the company’s workforce according to ESRS in the future.
³ The scope of employees participating in the survey goes beyond the scope of consolidation. However, there are some exceptions for companies that represent joint ventures and joint operations, as well as companies held for sale.

BASF Report 2025
(Consolidated) Sustainability Statement | 260

We have set ourselves the target of achieving an Engagement Index of more than 80%. We identified the target value based on an external benchmarking. The results are evaluated using both statistical and qualitative correlation analyses, in which the main factors influencing engagement are identified on the basis of the survey results and then examined in more detail with regard to possible actions. This analysis is carried out at global and decentralized levels. The respective organizational units' results are evaluated centrally and aggregated to provide leaders with concrete indications of strengths and potential improvements. Overall, we still see room for improvement in the results of the survey for the 2025 business year. Worldwide, nearly 85,000 employees participated in the survey (participation rate: 75%, 2024: 78%). The survey showed a global Engagement Index of 77%, which was a slight decrease compared to the previous year (2024: 79%). Our aim is to increase this score to the defined target value of higher than 80%.

The results of the employee survey are communicated to employees, leaders, the Board of Executive Directors, and the Supervisory Board using various dialog formats (see page 255). The results are discussed between leaders and employees, for example in workshops. This allows questions to be clarified and necessary improvement measures to be discussed. Through a decentralized approach, we can address the multifaceted needs of our organization with different strengths and areas of development. The results can also be considered in strategic decisions. For example, surveys indicated that processes were perceived to be too complex or bureaucratic. This is one of the reasons why we are focusing on becoming faster and more agile, and empowering employees with greater accountability in our strategy (see page 20).

We review the positive impact of adequate wages on a regular basis through specific actions, which are described on page 257 onward. We address the risks regarding the loss of critical skills and competencies, the securing of skilled workers, and the opportunities offered by unlocking potential through strong leadership with specific actions (see page 258 onward). We have not set ourselves specific targets for all aspects of material impacts as well as risks and opportunities for our company's workforce. For more information on how we measure the effectiveness of implemented actions, see the section Actions (see page 256).

Metrics

S1-6

The total number of employees as of December 31, 2025 was 108,251. This is a decrease compared to the number of 111,822 employees as of December 31, 2024. The decline was primarily due to departures in connection with the ongoing cost savings programs and as part of the divestiture of the Brazilian decorative paints business. The number of employees includes employees of the discontinued coatings business. As of December 31, 2025, the number of employees was 9,928 (2024: 10,122).

Expenses for wages and salaries, social security contributions and assistance, as well as for pensions in 2025 are reported in the Notes to the Consolidated Financial Statements from page 412 onward.

The following table illustrates the regional distribution of employees. We employed at least 10% of the BASF workforce in each of the three countries Germany, China and the United States. As of December 31, 2025, the total number of employees at BASF SE was 32,190.

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Employeesa in countries and regions as of December 31

Regions	Europe		Asia Pacific		North America		South America, Africa and Middle East		Total
	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Employees	65,073	66,726	21,592	21,971	15,652	15,969	5,934	7,156	108,251	111,822
Of which countries with 10% or more of the total workforce	Germany		Greater China		United States
	2025	2024	2025	2024	2025	2024
Employees	48,955	50,602	12,452	12,687	13,045	13,304

a Recorded as head count

We use the following definitions globally for employees in our company:

Permanent employees have an active contract for an unlimited period of time.
Temporary employees are employed by BASF on the basis of an individual agreement with a temporary employment contract.
Apprentices are employees who have a temporary contract with BASF. In accordance with this contract, apprentices receive in-company vocational training as part of an accredited education program.

Employeesa by contract type and gender as of December 31

	Male		Female		Not disclosedb		Total
	2025	2024	2025	2024	2025	2024	2025	2024
Employees (total)	78,717	81,572	29,534	30,250	0	0	108,251	111,822
Permanent employees	75,530	78,081	28,063	28,695	0	0	103,593	106,776
Temporary employees	1,095	1,183	900	922	0	0	1,995	2,105
Apprenticesc	2,092	2,308	571	633	0	0	2,663	2,941
Non-guaranteed hours employees	0	0	0	0	0	0	0	0

a Recorded as head count
b Not disclosed: We currently do not record a third gender globally. We will regularly review the relevance of this category in external reporting.
c The number of apprentices at BASF SE was 1,730.

Employee turnovers in the business year

	2025	2024
Average number of employees, BASF Group	110,440	111,744
Employees who had left the company as of December 31	8,280	7,996
Turnover rate as a percentage	7.5%	7.2%

a Recorded as head count

The rate of employee turnover, i.e., the proportion of employees who left the company in 2025, amounted to 7.5% globally (2024: 7.2%). We adhere to the ESRS definition, which includes voluntary and involuntary leaves, retirements, and deaths in service.

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S1-10

We reviewed adequate wages at BASF Group companies in accordance with the ESRS definition. The review included the respective base salary and fixed guaranteed additional payments in the business year. Calculation of adequate wages in accordance with ESRS is not based on an annual target value.

For the year 2025, the review concluded that all employees receive adequate wages.

S1-14

Occupational safety and health key figures as of December 31

	2025	2024
Number of fatalities as a result of work-related injuries and work-related ill health	0	0
Rate of recordable work-related injuriesa,b	3.94	3.78
Number of recordableb work-related injuries	772	753
Number of cases of recordablec work-related ill health	17	33
Number of days lost to work-related injuriesc	5,861	6,223

a Per 1,000,000 working hours
b "Recordable" includes all work-related injuries and cases of work-related ill health recorded in the system for BASF in accordance with ESRS.
c There may be deviations in this metric due to data collection (see page 149). The updated number of days lost for 2024 is 7,671.

Safety is our highest priority. No fatal work-related injuries were recorded in 2025. We rely on extensive measures to prevent further work-related injuries.

S1-17

In 2025, 82 cases of employees who experienced discrimination were reported to us (2024: 79). These were related to gender, age, nationality, disability, religion or worldview, sexual orientation or ethnicity. They were racist in origin or related to other relevant forms of discrimination based on characteristics protected by law, including harassment as a specific form of discrimination.

In addition, 263 complaints (2024: 225) related to the social factors or aspects⁴ mentioned in ESRS S1, paragraph 2, were submitted via the BASF compliance grievance mechanism in the reporting period.

In 2025, there were no fines, sanctions or compensation payments in connection with these incidents, and we identified no severe human rights-related incidents in relation to workers in our company (2024: 0).

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S2 Workers in the Value Chain

ESRS S2

As an international company, we are active in a variety of different supply chains, businesses and companies, and have business relationships with partners around the world. This means we have links to a large number of people who contribute to our business activities. We accept the resulting obligations and opportunities along the value chain and strive for sustainable value creation. Together with our partners, we are working to uphold human rights as well as international labor and social standards and to minimize risks. Another important matter for us is socially just climate transformation.

ESRS 2 SBM-2 ESRS 2 SBM-3 ESRS 2 IRO-1

Good collaboration with our partners is closely linked to our business success. It is decisive for ensuring resilient, responsible supply chains and for the production of high-quality, safe and more sustainable solutions and products. We therefore attach considerable importance to the interests and viewpoints of workers in the value chain during our collaboration with our partners. We aim to minimize negative impacts on workers in the value chain through our engagement and to achieve a positive impact. By adopting our due diligence approach (see page 296) and establishing standards and initiatives in our work with our partners (see page 268), we advocate for the rights of the workers in our value chain and good and safe working conditions and promote worker training.

Our double materiality assessment (see page 163) indicates three material impacts on the workers in our upstream supply chain (see table Results of the double materiality assessment).

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Results of the double materiality assessment for S2 Workers in the Value Chain: Impacts

Impact	Evaluation	Position in the value chain	Description
Increased health and occupational safety risks when handling chemical raw materials	Negative, potential	Upstream value chain	In the production of chemical raw materials, there are increased health and safety risks in our upstream value chain, particularly if required safety measures are not complied with. This is a common problem primarily in countries whose national laws do not include any, or low requirements with respect to labor protection standards.
Risk of child labor in specific supply chains	Negative, potential	Upstream value chain	Child labor is a particular risk in critical and less transparent supply chains and in countries with little state control and low incomes. This applies, for example, to our upstream supply chains for renewable raw materials, minerals and seeds. Smallholder farms and artisanal mines are particularly affected.
Risk of forced labor in specific supply chains	Negative, potential	Upstream value chain	Sourcing minerals or renewable raw materials from countries with little state control may be associated with the risk of forced labor. Workers in regions with poverty and inequality are particularly affected.

The impacts identified are a common issue primarily in countries whose national law has no or low requirements for labor protection standards and in which there is little state control and low incomes. All workers in our upstream supply chain were included in the double materiality assessment. This includes workers from joint venture partners as well as workers who work at our sites but are not part of our own workforce.

In line with the results of our double materiality assessment, we identified the following groups as being particularly exposed to the impacts of our business activities: mine workers in the battery value chain, workers in seed production, field workers and workers in chemical plants with high hazard potential. A lack of transparency regarding working conditions at subcontractors represents an increased risk in general. Our risk analysis focuses primarily on countries with high ESG risks such as China, India, Malaysia, Brazil or Thailand, with India demonstrating a particularly high risk of child labor. Further information on the inclusion of the interests and viewpoints of our stakeholders can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement from page 159 onward.

We consider workers in our downstream value chain during our due diligence reviews of business partners (for more information, see page 296), but do not consider them to be a material target group in relation to impacts, risks and opportunities. We did not identify any material financial risks and opportunities for BASF in relation to workers in the value chain. We systematically record opportunities and risks as part of our general opportunity and risk management (for additional information, see page 90 onward).

Strategy and governance

S2-1

A core element of our sustainability strategy is to respect and protect the dignity, rights, health and safety of individuals, both within and outside our own workforce. We view sustainability topics as holistically as possible, including the aspects that have been identified as material – health and occupational safety as well as potential child and forced labor. We aim to act as a role model for responsible and safe behavior along our entire value chain, and to work together in a spirit of trust with partners such as suppliers, service providers, contractors, joint venture partners and customers. We adopt a holistic strategic approach that includes all workers in our supply chains; however, the focus in our reporting is on the upstream value chain, in line with the results of our materiality assessment.

BASF Report 2025

(Consolidated) Sustainability Statement

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General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). This includes, among others, the BASF Code of Conduct, the BASF Policy Statement on Human Rights, our risk-based sustainability management for procurement as part of our procurement requirement, the Supplier Code of Conduct and our principles for the responsible sourcing of renewable raw materials. The specific aspects of these policies are explained in the following section.

In addition, we have established a requirement for the responsible sourcing of battery materials for the upstream supply chain, which also covers the issues of child and forced labor. The requirement is globally binding for all employees of the Battery Materials division and can be accessed via the BASF intranet. Accountability lies with the Battery Materials division management. As part of the requirement, we are committed to the U.N. Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises and Due Diligence Responsible Supply Chains of Minerals from conflict-affected and high-risk areas (CAHRAs). In order to monitor compliance with the requirement, Battery Materials reports once a year to the responsible member of the Board of Executive Directors as well as to the Corporate Compliance and Global Procurement units.

We are committed to complying with applicable laws and international standards (see page 289). We also expect our partners to comply with the law and with standards, including the regulations governing health and occupational safety as well as child and forced labor. Equally, we expect them to endeavor to enforce these standards at their own partners and take steps to ensure that they comply with this responsibility. We rely here on a systematic, integrated, risk-based approach and established monitoring and management systems.

For us, the implementation of supply chain-specific due diligence processes is a continuous and comprehensive task. We have embedded our responsibility for human rights and thus also for ensuring safe working standards and preventing potential child and forced labor in BASF's Code of Conduct and Supplier Code of Conduct and have set it out in more detail in our Policy Statement on Human Rights. All employees and leaders bear responsibility for ensuring that we act in accordance with our Code of Conduct and Policy Statement on Human Rights.

For more information on the BASF Code of Conduct, see basf.com/code-of-conduct
For more information on the Supplier Code of Conduct, see basf.com/supplier_code_of_conduct
For more information on our Policy Statement on Human Rights, see basf.com/policy-statement-human-rights

Human rights due diligence

Human rights is an important topic for us and this is reflected in our organizational structures. The head of our Legal and Compliance organization also acts as Chief Human Rights Officer and is responsible for monitoring overall risk management, including human rights risks under the German Supply Chain Due Diligence Act (LkSG). Our Compliance organization reports regularly to the Board of Executive Directors and the Audit Committee on this matter. In addition, we have integrated sustainability-related evaluations in our governance and decision-making processes, for example in relation to investment, acquisition and divestiture projects.

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The governance of human rights due diligence at BASF also lies with the Compliance organization. In addition, several specialist units are responsible for steering specific human rights topics, including through our Human Rights Expert Working Group (for more information, see chapter G1 Business Conduct from page 291 onward). Relevant aspects of human rights topics are also part of the global qualification guidelines for security personnel and are incorporated into the standard agreements with contractors.

We use our Human Rights Advisory Council to access additional external human rights expertise (more information on page 160). At the meetings held in 2025, we exchanged views with experts for example on human rights issues in global supply chains, including the risks of forced labor and how to deal with dilemma situations, and discussed our responsibility in the context of due diligence.

> For more information on the Human Rights Advisory Council, see basf.com/human-rights-council

Procurement guidelines

Our Procurement organization has set out guidelines for the upstream supply chain in a global, risk-based management system; these specify how we implement our due diligence processes. We have defined the standards for this in a global requirement. We continuously enhance our structures and processes so as to reflect changes in the framework conditions. Procurement requirements and targets are set centrally and are binding for all employees with procurement responsibility worldwide. We endeavor to ensure compliance with these guidelines using a multistage control process. In this process, minimum standards drawn up by the Corporate Center units are used to support and monitor the individual risk management systems of our business units during implementation. The Corporate Audit unit, as the third instance involved, verifies the effectiveness and compliance of the risk management.

We have set out our expectations of suppliers in the global Supplier Code of Conduct, which is based, among other things, on the Ten Principles of the UN Global Compact and the Responsible Care® initiative. Topics covered by the Code of Conduct include compliance with human rights, the exclusion of child and forced labor as well as human trafficking, safeguarding labor and social standards, as well as antidiscrimination and anticorruption guidelines. We regularly develop our Code further. It is available in the most relevant languages for our suppliers and integrated into electronic ordering systems and purchasing conditions across the Group.

We want to help shape the transformation toward climate neutrality in a socially just way (just transition). This is why we also focus closely on the processes used for sourcing renewable raw materials. In addition to positive environmental effects such as reducing greenhouse gas emissions, these can also have negative effects on social factors, depending on the raw materials. We take this into account in our risk analyses and have drawn up clear principles for the responsible sourcing of renewable raw materials (for information on the monitoring of compliance, see page 225). These basic principles also refer to the ILO's standards and its Declaration on Fundamental Principles and Rights at Work, which in turn include the topics of child and forced labor as well as occupational safety. At the same time, we seek dialog with our stakeholders to identify conflicting goals (see page 271).

> For more information on our principles for the responsible sourcing of renewable raw materials, see basf.com/responsible-sourcing

BASF Report 2025

(Consolidated) Sustainability Statement

We are implementing concrete actions to mitigate negative impacts and risks and at the same time facilitate opportunities related to workers in the upstream value chain. These aim at promoting open dialog, evaluating and developing our suppliers, and improving conditions for their workers by taking preventive measures and through local initiatives. Our management processes come into effect in the event of specific incidents.

We rely primarily on the following actions: Engagement with workers via dialog forums and advisory councilsUse of uniform global grievance mechanisms to channel the concerns and needs of workers in the value chainSupplier ESG risk analysisRisk‐based evaluation of suppliers through online assessments (EcoVadis) or on‐site audits, for example as part of the chemical industry's Together for Sustainability (TfS) initiativeImplementation of corrective measures at suppliersSupport for suppliers in growing sustainability‐related skills in the form of appropriate training

Engagement and grievance mechanisms

S2‐2

We include the viewpoints of our partners and their workers in our decisions and actions via dialog forums and advisory councils with external experts, such as our Human Rights Advisory Council (for more information, see page 160) and our Nature Advisory Council (for more information, see page 160). In the Civil Society Forum, founded in 2024, we exchange ideas with representatives of the civil society and trade union spectrum (for more information, see page 160). Topics including children's rights and combating child labor in the seed business were most recently discussed in fall 2024.

Moreover, we also seek direct dialog with our suppliers. We use specific dialog formats in higher‐risk business areas such as our seed business or in the procurement of castor oil. In addition, we gain insights into the perspectives of workers in the value chain through the continuous exchange in multistakeholder initiatives, such as Cobalt for Development (see also page 272), the Global Battery Alliance (see also page 272) or the Responsible Mica Initiative (see also page 273). We also enter into dialog with relevant stakeholders through our involvement in other committees such as the sustainability network econsense, where we are the topic sponsor in the Human Rights & Value Creation cluster.

The relevant units such as Sustainability Relations and Corporate Compliance, as well as Global Procurement and the specialist units in our operating divisions are responsible for ensuring appropriate, regular dialog (for additional information on the allocation of responsibilities for the units within the Board of Executive Directors, see page 140).

We assess the effectiveness of our collaboration with workers in the value chain, for example in the course of our supplier evaluations and follow‐up evaluations (see page 269 onward). We also assess the progress made with our implemented actions, and with our initiatives and projects.

S2‐3

We promote a culture in which critical issues and concerns can always be raised openly. For this purpose, we offer globally standardized grievance mechanisms at operational level. The key instrument is our Compliance Hotline. For more information on how the problems raised and addressed via this hotline are tracked and monitored, see page 294. The Compliance Hotline offers the opportunity to report concerns, risks and violations in BASF's activities or in the value chain confidentially and also anonymously. This also includes potential concerns in relation to health and occupational safety as well

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as child and forced labor. In addition to BASF employees, the hotline is open to all external stakeholders, and especially workers in our supply chains.

Our grievance mechanism is set out in our Supplier Code of Conduct, which is made available to our partners and service providers via our electronic ordering system as part of our purchasing conditions.

» Our Compliance Hotline can be reached at ethicspoint.basf.com/en.

Evaluating and developing our suppliers

S2-4

When selecting suppliers and evaluating supplier relationships, alongside economic criteria ESG standards are especially important. This means that selecting, evaluating and auditing suppliers are key elements of our sustainable supply chain and risk management, with the intention of ensuring that suppliers comply with the laws, regulations and standards in force, and especially with those relating to our material topics of potential child and forced labor as well as EHS standards. Due to the large number of suppliers, they are evaluated on the basis of risk. Here, we take both country and industry-specific risks and our ability to exert influence into account. Supplier evaluation is mainly performed as part of the TfS initiative, of which BASF is a founding member. TfS performs online assessments via the EcoVadis rating agency or conducts on-site audits using TfS-approved auditors. A total of 100 audits (2024: 118) with regard to sustainability standards were carried out at raw material supplier sites on our behalf in 2025. We received EcoVadis sustainability assessments for 257 suppliers with potential sustainability risks (2024: 328). We also take into account other certification systems and external audits, such as the Roundtable on Sustainable Palm Oil, when evaluating our suppliers. Depending on business requirements, we perform our own Responsible Care audits at selected contract manufacturers if material risks have been identified with respect to occupational safety, health and environmental protection. To prevent the risk of potential child labor, for example, we use targeted checks on suppliers in higher-risk countries, such as in our seed business supply chains in India.

Our employees in procurement are supported in this process by a dedicated procurement-specific sustainability team. This consists of a core team plus a supplementary sustainability network comprising employees from the regions and procurement clusters concerned. In addition, we have a global audit team that audits EHS topics at contract manufacturers.

We carefully analyze the results of our evaluations, which are summarized in audit reports or scorecards together with concrete plans for corrective actions, and document them in a central database. Where performance is inadequate, we contact the suppliers and request that they implement improvements. We review our suppliers' progress according to a defined time frame based on the sustainability risk identified, or after three years at the latest. Over the past few years, we have identified some need for adjustment at our suppliers with respect to environmental, social and governance standards. Examples include deviations from health and occupational safety measures and labor law requirements. In follow-up evaluations performed in 2025, we identified improvements in these areas.

We support our suppliers in developing measures for improvement. The webinars held by TfS in various languages on sustainability and the implementation of corrective measures are an important part of supplier development. In 2025, these were attended by a total of 1,019 supplier employees (2024: 990). In addition, the TfS Academy online learning platform is aimed at procurement employees as well as suppliers. It covers the entire spectrum of ESG topics, including child and forced labor, as well as health and occupational safety. There are currently more than 300 courses available in eleven different languages. We also continued our cooperation with East China University of Science and Technology in Shanghai, China, in 2025. A total of 38 employees from 26 Chinese suppliers received further training on ESG topics including child and forced labor as well as health and occupational safety.

BASF Report 2025
(Consolidated) Sustainability Statement

Preventive actions and local initiatives

The examples given below entail decentralized measures, projects and initiatives. They are not governed by a centrally managed action plan. Rather, they aim for continuous optimization and further development. This goes hand in hand with the BASF approach to sustainability steering (see page 150).

We are aware of the challenges in specific supply chains. For example, in 2025, we continued our proactive engagement in our upstream supply chains, where we usually have no direct contractual relationships, less transparency and less influence. We are working together with partners and civil society and are active in cross-industry initiatives. Projects often start on the ground to build specific local expertise regarding sustainable and responsible supply chains. In addition to making environmental improvements, our particular objective is to promote social aspects such as safe working conditions, adequate wages, access to healthcare systems and opportunities for upskilling/reskilling. We discuss the appropriateness of measures on a case-by-case basis with relevant stakeholders such as NGOs and government representatives. We also discuss our plans in our external dialog forums, in the Human Rights Advisory Council and in the Nature Advisory Council. We measure the effectiveness of specific projects using progress reports on, and studies of, for example, developments in the areas of income and living conditions and the establishment of policy frameworks and regulations.

Seeds

In 2022, BASF, Syngenta and Arisa joined forces to set up a multistakeholder initiative in the vegetable seed business in India. Under the name Wage Improvements in Seed Hybrids (WISH), the initiative addresses combating child labor and paying fair wages in the vegetable seed sector in the Indian federal states of Karnataka and Maharashtra. The first phase of the project involved a survey of more than 4,100 households, in which roughly 6,900 children, 200 farmers, 400 workers and other stakeholders took part, identifying the focus topics for improving local conditions. In the second phase of the project, which has been running since 2023, the partners are now using a variety of instruments to address these areas. Examples include training and upskilling/reskilling, networking, stakeholder integration (since 2024), advocacy efforts at local and international level, digital documentation and the dissemination of best practices. The multistakeholder cooperation was further strengthened by the joining of three further partners from the vegetable seed sector in the fourth quarter of 2024. BASF, Syngenta and Arisa together with the new partners aim to maximize the positive impact of the project by also engaging in a dialog with other national and international companies in the seed business. In 2024 and 2025, external NGOs conducted more than 1,450 training courses and information sessions in 28 villages within the project area reaching more than 600 farmers; BASF was responsible for 211 seed production farms in 2025. The sessions involved more than 10,000 stakeholders from various interest groups in total, including around 3,400 workers. The aim of the project is to achieve tangible improvements with respect to increasing wages and avoiding child labor in the vegetable seed sector. By the end of 2025, average wages in the project area had already improved, depending on region and farm activity. An external research study also showed that the rate of children attending school in the project area's regions rose by 8 to 16 percentage points, while the rate of children dropping out of school decreased by 2 to 4 percentage points. The initiative will continue for an initial six-month period in 2026.

Renewable raw materials

Palm oil, palm kernel oil and their derivatives are some of our most important renewable raw materials; these are described in detail under E4 Biodiversity and Ecosystems (see page 225 and 228). Based on our Supplier Code of Conduct, we have defined our expectations of suppliers in the palm-based value chain in an additional procurement policy (BASF Palm Sourcing Policy). This addresses not only the protection of forests and other natural ecosystems, but also traceability and environmental aspects, the protection of workers' rights and the rights of Indigenous peoples as well as the inclusion of smallholder structures.

For more information on our voluntary commitment to palm oil products and the Responsible Sourcing Report, see basf.com/en/palm-dialog

Another important raw material for BASF, albeit on a much smaller scale, is castor oil. We use castor oil to manufacture products such as plastics and ingredients for paints and coatings, as well as products for the cosmetics and pharmaceutical industries. We were a founding member of, and have been active since 2016 in the Sustainable Castor Initiative -- Pragati, with the aim of establishing a certified sustainable supply chain for castor oil in India. As part of Pragati, smallholders receive training, which is based on a specially developed sustainability code, SuCCESS, on topics such as health, the safe use of crop protection products to minimize occupational safety risks, and cultivation methods.

For more about sustainable castor oil, see basf.com/responsible-sourcing

Plants also form the basis of many other products in our portfolio for cosmetics. This applies, for example, to our biopolymers and bioactives. Through resource-conserving sourcing practices, we aim to preserve ecosystems and enable more sustainable management for the people whose livelihoods depend on them. For example, we have been combining economic, environmental and social aspects including improved, safe working conditions and access to medical care for several years now in our holistic procurement initiatives for Argan (Morocco), Rambutan and Galanga (both Vietnam). We have consolidated our bioactives activities in our Responsibly Active program.

For more information on the Responsibly Active program, see personal-care.basf.com/responsibly-active

Mineral raw materials

We have relationships with a large number of suppliers of mineral raw materials, which we use to manufacture products including automotive and process catalysts or battery materials for electromobility. We have implemented the EU's Conflict Minerals Regulation, for example by carrying out a compliance check for the import of conflict minerals in our ordering system. The EU Conflict Minerals Regulation aims to combat the financing of armed conflicts and human rights violations such as child and forced labor. It also defines supply chain due diligence for tin, tantalum, tungsten and their ores as well as gold (3TG) imported into the EU from conflict-affected and high-risk areas (CAHRAs).

For more information on the BASF Conflict Minerals Report 2024, see basf.com/conflictmineralsreport

We also attach importance to certifications, such as the certificate of the London Bullion Market Association (LBMA) for gold, the certificate of the London Platinum and Palladium Market (LPPM) for platinum group metals, the certificate of the Initiative for Responsible Mining Assurance (IRMA) and the Responsible Minerals Assurance Process of the Responsible Minerals Initiative. Furthermore, BASF is committed to responsible and sustainable global supply chains for other mineral raw materials. These include cobalt, a key component in the production of battery materials. We have organized our cobalt supply chain according to established sustainability requirements such as the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals. Our goal is to not purchase cobalt from artisanal mines as long as responsible labor, social and environmental standards cannot be verified.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Together with BMW, Samsung SDI, Samsung Electronics, Volkswagen, Stihl and Deutsche Gesellschaft für Internationale Zusammenarbeit (German Corporation for International Cooperation, GIZ), we have been involved in the cross-industry initiative Cobalt for Development since 2018. It is intended to improve working and living conditions for artisanal miners in the Democratic Republic of Congo and to explore and implement opportunities for legalizing artisanal mining. To achieve this, the initiative offers programs such as training on important environmental, social and governance aspects of responsible mining practices. In the second phase, which started in the spring of 2023, mining cooperatives continued to receive training on topics such as occupational safety and environmental management. In addition to technical support in mapping and sampling the deposits, joint strategies were developed together with stakeholders from the Congolese government to create a legal basis for the miners to continue operating the mine. With the start of the third phase in spring 2025, we have committed ourselves to the initiative for another three years. The aims of the project have been updated with regard to the practical and legal implementation of the mining project with a cooperative in order to provide a sustainable operating basis for the project after completion of the third phase in spring 2028.

For more information on the Cobalt for Development project, see basf.com/cobalt-initiative and cobalt4development.com
For more information on responsible sourcing, see basf.com/responsible-sourcing

Also relevant in the context of battery materials is the Global Battery Alliance (GBA), which was cofounded by BASF in 2017. It has over 150 members and promotes dialog between businesses, governments and civil society. At the same time, the GBA develops means for steering a sustainable and responsible circular economy for batteries, with the aim of establishing this by 2030. It acts as the multistakeholder platform to develop widely accepted rules for comprehensive and standardized reporting of ESG topics. These include environmental protection, child and forced labor as well as human rights, among other things. The GBA's regulations were tested in pilot projects in 2024, published as a beta version (version in the late development phase) in 2025 and are expected to be ready in time for the future battery passport, the digital identification document for batteries provisioned by the EU Batteries Regulation.

For more information on the Global Battery Alliance, see globalbattery.org

In addition, our Platinum Group Metals catalyst recycling business, which processes secondary Platinum, Palladium and Rhodium materials, adheres to the LPPM's Responsible Sourcing Guidance. The requirements of the Guidance are mandatory for LPPM-approved refineries (Good Delivery Refiners) as well as for members of the LPPM accreditation lists (Sponge Accreditation Lists). The Guidance provides a framework for responsible sourcing by requiring audited due diligence processes and annual independent third-party reviews to mitigate risks of conflict-related sourcing. Its aim, aligned with the OECD Due Diligence Guidelines for Minerals from Conflict Regions and High-Risk Areas (CAHRAs), is to combat human rights violations, prevent conflicts and uphold anti-money laundering standards.

BASF Report 2025

(Consolidated) Sustainability Statement

Another mineral raw material that BASF processes is mica. As a base for effect pigments, it is mainly used in the production of coatings and seed coatings. As an active member of the Responsible Mica Initiative (RMI), we advocate for the elimination of child labor and unacceptable working conditions, specifically in India's mica supply chain. The initiative is focusing on labor standards, strengthening local communities and legal frameworks in the period up to the target year of 2030. As the RMI's recent progress report shows, activities in the relevant regions of India have already led to improved income and living conditions. These include improved access to clean drinking water through the installation of pumps and filtration systems and improved access to healthcare through doctors' visits in villages and enrollment in public health insurance plans.

For more information on the Responsible Mica Initiative, see responsible-mica-initiative.com

Management of specific incidents

If we learn of irregularities or violations in the course of our audits or from other sources such as media reports or our Compliance Hotline, we take them very seriously, react immediately and require our partners and suppliers to implement corrective measures without undue delay and to stop the violations. In the case of serious violations of the standards defined in our Supplier Code of Conduct or of international principles, such as intolerable working conditions or child or forced labor, we reserve the right to impose commercial sanctions. These can go as far as termination of the business relationship. The same applies to failure to correct violations, or for displaying systematic violations of these standards. In 2025, we made the decision to terminate one direct business relationship, effective March 1, 2026. We are in close contact with our suppliers, especially in higher-risk areas and regions, and monitor the implementation of relevant standards and required measures for improvement. Effective April 21, 2025, BASF has sold its shares in the joint venture companies BASF Markov Chemical Manufacturing (Xinjiang) Co. Ltd. and Markov Meiou Chemical (Xinjiang) Co. Ltd. in Korla, in the northwestern Chinese province of Xinjiang, to Verde Chemical Singapore Pte. Ltd.

In addition, action plans have meanwhile been developed and implemented for cases of infringements of the German Supply Chain Due Diligence Act (LkSG) that were identified in 2024. In the 2025 reporting year, infringements were identified and are currently being processed.

Global targets

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Our global corporate target of responsible procurement (for additional information, see page 32 onward) aims to holistically improve our suppliers' sustainability performance: It covers both comprehensive sustainability matters and the matters of health and occupational safety as well as potential child or forced labor that are material for the Workers in the Value Chain topic. BASF has not set itself a specific target for the Workers in the Value Chain topic.

We want to drive sustainability in the supply chain in a targeted manner and are therefore focusing on suppliers with an increased sustainability risk: For the time horizon up to 2030, BASF is concentrating on improving the sustainability performance of those suppliers who achieved inadequate results in evaluations. We are striving toward ensuring that annually, 80% of suppliers who underwent a sustainability evaluation during the reporting period, and who had inadequate results in a prior comparable evaluation, improve their sustainability performance. An improvement could result, for example, from a positive development of the EcoVadis score or successful implementation of corrective measures confirmed in a follow-up audit. In 2025, the figure was 77% (2024: 76%). In order to achieve our target level of 80% annually by 2030, we began establishing a tracking process involving specialists from the Compliance organization in 2024. They contact suppliers with inadequate results and monitor the implementation of corrective measures.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

For us, a supplier evaluation is valid for three years. We then carry out a new internal classification by means of a risk assessment and derive appropriate follow-up measures based on this. The global target is anchored in the objectives of our employees with purchasing responsibility.

As a matter of principle, we strive to prevent child and forced labor, negative impacts on occupational safety and health protection as well as impacts on other sustainability-related topics. These expectations are set out globally in our Supplier Code of Conduct and are audited via multistage, risk-based monitoring systems. We are steering toward a situation where our suppliers comply with the requirements set out in the Supplier Code of Conduct. We take action if we become aware of severe violations in the areas of health and occupational safety or child or forced labor. We contact the suppliers concerned, offer them training and explicitly request that they implement corrective measures within a defined time frame. We systematically track implementation, as we aim to achieve improvements in these areas. If we find that infringements have not been remedied or minimized, we can impose commercial sanctions or terminate the contracts concerned.

The expectations of our stakeholders are continuously taken into account when setting potential targets. We ensure that this is the case through regular meetings with external stakeholders, which are held as part of our strategic stakeholder engagement, as well as in meetings with investors (see page 159), in which we discuss the sustainability topics that are material for BASF.

BASF Report 2025

(Consolidated) Sustainability Statement

S3 Affected Communities

ESRS S3

We aim to avoid negative impacts and increase positive impacts by acting responsibly along the entire value chain. In order to shape the transformation toward climate neutrality in a socially just manner, we seek collaboration through dialog with communities that may be affected by our business activities. We want to live up to our responsibility and pursue the objective of empowering the communities around our sites worldwide.

ESRS 2 IRO-1 ESRS 2 SBM-2 ESRS 2 SBM-3

A core element of our sustainability strategy is to respect the dignity, rights, health and safety of individuals, both within and outside our own workforce. For us, safe and responsible behavior throughout the entire value chain is of paramount importance.

This also applies to all communities that could be affected by our business activities. Here, we also include activities in our upstream value chain if the raw materials sourced by us are produced or extracted under sometimes challenging conditions. For example, the growth of plants purchased by us as renewable raw materials may be associated with land degradation and a deterioration in local biodiversity (see page 221). The extraction of mineral raw materials could also have a negative impact on communities. Currently, these raw materials are sometimes extracted in regions that bear a greater risk of violations of labor, social and environmental standards. We are therefore committed to a more sustainable supply chain especially for these materials (see page 271). We consider Indigenous peoples, on whose land extraction of raw materials is planned, to be among the vulnerable groups of affected communities.

We also regard direct neighbors of our production sites as affected communities, as well as other people in the area surrounding our industrial premises who can be impacted by our production operations and the associated potential environmental emissions or by the disposal of contaminated substances. To meet our commitment that the production of our products is safe for both people and the environment, we have set global targets and established management systems (see page 32).

In our double materiality assessment (see page 163), the topic S3 Affected Communities was identified as material. As a result of the assessment, we see a material risk for BASF, as well as four material impacts on affected communities, which result from our operations (see table on page 276).

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Results of the double materiality assessment for S3 Affected Communities: Impacts

Impact	Evaluation	Position in the value chain	Description
Potential adverse effects on health associated with the production and use of chemicals	Negative, potential	BASF's own operations; upstream and downstream value chain	The production and use of chemicals in our own operations and in our value chain could impact the health of people and communities.
Land-related impacts in the supply chain	Negative, potential	Upstream value chain	Our business activities – especially in the sourcing of raw materials – could lead to changes in land use, limited access to land and resources, and violations of land rights for affected communities. This could affect Indigenous communities in particular, for example through disregarding their right to free, prior and informed consent (FPIC).
Contribution to the positive development of communities	Positive	BASF's own operations	Through our business activities, our stakeholder engagement and our societal engagement, we exert a positive economic, social and cultural influence on communities.
Positive contribution to food supply	Positive	Downstream value chain	Our crop protection products and our seeds help to ensure that crops produce good yields in light of increasing disease and pest pressure, so that people benefit from an adequate food supply.

Results of the double materiality assessment for S3 Affected Communities: Risks and opportunities

Risk	Evaluation	Description
Loss of societal acceptance due to potential adverse effects on the health of people and communities	Negative	In the event of negative impacts on communities, societal acceptance of our business activities could suffer, trust could be lost in BASF and the risk of litigation could increase.

Strategy and governance

S3-1

General information on our overarching policies can be found in the General Disclosures chapter of the (Consolidated) Sustainability Statement (from page 150 onward). This includes the BASF Code of Conduct, the BASF Policy Statement on Human Rights, our environmental protection, health, safety and quality management system, and our Supplier Code of Conduct. The specific aspects of these policies are explained in the following section.

The acceptance and support of our stakeholders are crucial for our business success. We pursue the principle of coexisting well with affected communities by reducing negative impacts of our business operations and maximizing positive impacts. In this way, we want to contribute to a world that offers a better quality of life for everyone. The protection of affected communities is a central concern for us. We aim to produce safely for people and the environment, to respect human rights and not to violate them at any time through our business activities. We record compliance risks, including those related to communities that could potentially be affected by our business activities, by means of regular risk assessments of our operating divisions and group companies worldwide (see page 295).

Another commitment is to act in a responsible and entrepreneurial manner in accordance with international standards (see page 16 and page 289). Through our Policy Statement on Human Rights, we are committed to respecting the human rights of local communities and vulnerable groups and strengthening them along the entire value chain (for more information and the publicly available link to the Policy Statement on Human Rights, see page 291). We have also anchored our human rights responsibility in our BASF Code of Conduct. Respect for human rights is systematically integrated into our corporate governance and our decision-making processes. The global BASF Code of Conduct is binding for all employees and we track compliance with its guidelines by means of our control and monitoring systems (see page 288).

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

We expect all our partners to comply with international human rights and have formulated this expectation in our Supplier Code of Conduct (for more information and the publicly available link to the Code of Conduct, see page 266 and 267). Where necessary, we support partners in meeting their due diligence obligations. We strive to meet our responsibility along the entire value chain and are willing to face the associated opportunities and risks.

We review the resilience of our business models with regard to various sustainability aspects as part of our business strategy development (for more information, see Double materiality assessment from page 165 onward). The strategies of our business units are updated at regular intervals together with experts from the business units as well as the Corporate Strategy and Corporate Sustainability units. In addition, we have integrated social and human rights assessments into our governance and decision-making processes, for example for investment, acquisition and divestiture projects. We involve key stakeholders in decisions on future investments at an early stage. These may also include representatives of affected communities.

The business strategy of our Agricultural Solutions division and its contribution to food supply are outlined from page 278 onward.

Material impacts of BASF on affected communities

S3-1 ESRS 2 SBM-3

In the following section, we explain in more detail our strategy in relation to the four material impacts of BASF on affected communities.

Potential adverse effects on health due to our business activities

As a global chemical company, BASF is aware of the risks that can arise from the production and use of chemicals both in our own operations and in our upstream and downstream value chains. In the event of negative impacts, societal acceptance of our business activities could suffer in the short to long term, trust in BASF could be lost, and the risk of litigation could increase.

It is part of our due diligence obligations to protect and respect not only the health and safety of our own employees, but also that of contractors, suppliers, neighbors and customers along our value chain. To this end, we continuously identify and assess potential hazards and implement measures to mitigate risks (see page 256). Our Group-wide management system for environmental protection, health, safety and quality is based on the guiding principles of the Responsible Care® initiative and quality management (see also pages 201 and 251 onward).

The Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality, which reports directly to a member of the Board of Executive Directors, determines the Group-wide management and control systems and monitors compliance with internal and legal requirements (for additional information on the responsibilities of the Corporate Center units in the Board of Executive Directors, see page 140 onward). At the same time, the sites and Group companies are responsible for implementing the stipulated guidelines at local level.

BASF Report 2025

(Consolidated) Sustainability Statement

We strive to prevent possible adverse health effects along our value chains from the outset. We use findings on potential health risks to take appropriate preventive measures to prevent potential negative impacts on affected communities from occurring or being repeated. We expect the same from our suppliers and have set out this expectation in our Supplier Code of Conduct (see page 267).

With our commitment to product stewardship under Responsible Care^{®} and the initiatives of the International Council of Chemical Associations (ICCA), we are committed to minimizing the negative effects of our products on health, safety and the environment, and to continuously improving the safety of our products. Before our products are launched on the market, they undergo various tests and assessments -- depending on their application profile and legal requirements. By conducting these tests, we aim to identify potential hazard indicators, as well as health and environmental risks, at an early stage. Based on these findings, we devise suitable preventive and protective measures and develop recommendations on secure handling -- from production and application through to disposal.

To ensure product safety, we have established global management systems in our downstream value chains: For example, we set global guidelines on the safe transportation of hazardous goods for our logistics service providers and, where necessary, advise our customers on product safety to ensure that our products, when used responsibly and for their intended purpose, do not present any risk to either people or the environment (for more information, see page 207).

Land-related impacts in the supply chain

Business activities along the value chain -- especially in the sourcing of raw materials -- could potentially lead to changes in land use, limited access to land and resources, and violations of land rights. This can affect Indigenous communities in particular, for example through disregarding their right to free, prior and informed consent (FPIC).

BASF opposes all forms of human rights violations and, through the BASF Group's Policy Statement on Human Rights, has committed itself to respecting human rights and fostering respect for the human rights of local communities and vulnerable groups along the entire value chain (see page 290). These include, in particular, the observance of land-related rights, as well as the implementation of the principle of the FPIC of Indigenous peoples (see page 224). We have integrated human rights- and land-related assessments into our corporate governance and decision-making processes, e.g. for investments in sites, plants, and financial assets. We also involve key stakeholders in decisions on future investments at an early stage. These may also include representatives of affected communities.

Our procurement requirement obliges suppliers to comply with environmental and social standards on the basis of our global Code of Conduct. We seek regular dialog with our stakeholders to identify conflicting goals and include recognized certification standards in our decisions (see page 225 and 269).

Food supply through our products

As one of the world's leading companies, we offer products and innovations for agriculture and support the sustainable transformation of the agricultural and food system. Our crop protection products, seeds and digital solutions help to ensure that crops produce a higher yield so that people benefit from an adequate food supply.

Our innovation-driven strategy for agriculture focuses on selected crop systems: soy, corn and cotton in the Americas; wheat, canola (oilseed rape) and sunflower in North America and Europe; rice in Asia; and fruit and vegetables globally.

In our Agricultural Solutions division, we are working to strike the right balance between economic, environmental and social value creation for a future-oriented and highly efficient agriculture. In light of the increasing global population, demand for food and feed, fibers as well as renewable raw materials and energy is increasing, whereas land suitable for agriculture is limited. This makes it essential to make agriculture even more productive. It must be balanced and ensure that affordable food can be produced in sufficient quantities. At the same time, it is extremely important to reduce negative impacts on the environment and potential adverse effects on health connected with the production and use of crop protection products to acceptable levels.

We leverage our expertise in research and development and our deep understanding of the way individual growers manage their farms to provide offers across technologies. These include novel solutions for seeds and traits, chemical and biological crop protection as well as digital products tailored to regional farming needs and crop systems.

Positive community development

Through our activities, we aim to strengthen the communities surrounding our sites worldwide, promote the attainment of the Sustainable Development Goals (SDGs) and achieve a long-term positive impact on the environment and society. Our business activities can contribute to the positive development of local communities at our sites -- for example, by creating jobs and promoting value generation in the regions. In addition, we are in continuous dialog with relevant stakeholders in order to incorporate the insights gained from this into our activities.

Through our societal engagement, we aim to improve people's quality of life through the prevention and combating of diseases (health), promote educational equity, employability and economic participation (skills) and safeguard natural resources (resources) (see page 281).

Our activities follow our global societal engagement policy. This is based on the BASF Code of Conduct and falls within the responsibility of the Corporate Sustainability unit.

Stakeholder engagement

S3-2

Continuous dialog with our stakeholder groups and their involvement are integral to BASF's corporate responsibilities. Central governance, quality assurance and ongoing development of our engagement with societal stakeholders are the responsibility of the Corporate Sustainability unit, which is under the direct responsibility of the Chairman of the Board of Executive Directors. The insights gained in the dialog with stakeholders are included in relevant strategic decisions. Regular company-wide exchange of experiences and insights is designed to ensure the continuous improvement of our approaches and measures.

In order to be able to better assess our impacts on, and risks for, affected communities, we have structured our stakeholder engagement in such a way that we consider the feedback of affected communities in our business activities. As part of our Responsible Care Management (see page 201), we aim, for example, to safeguard the right of residents at our sites to access clean water.

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The concerns of affected communities, especially vulnerable groups such as Indigenous peoples, are integrated at several levels: We can be contacted directly via the BASF Compliance Hotline. In addition, we engage in dialog with experts in, for example, human rights and climate science, as well as with nongovernmental organizations that represent the interests of vulnerable groups. On a case-by-case basis, we seek direct dialog with their representatives. In this regard, we observe our Group-wide requirements on relations with representatives of civil society.

We bear a particular responsibility toward the neighbors of our sites. With community advisory panels, we promote continuous dialog between residents and our site management and strengthen trust in our activities (see page 160).

We address current and important issues regarding specific topics with our own advisory councils. This enables BASF to better understand the impact of its operations on the environment and affected communities. The Nature Advisory Council (NAC), our advisory council for topics related to biodiversity and ecosystems, serves the purpose of obtaining an independent societal perspective on our activities in relation to nature and biodiversity topics, including those related to affected communities (for more information, see page 160). The Human Rights Advisory Council (HRAC) provides a trust-based and constructive dialog to enable us to better meet our role and responsibility, particularly in situations that are challenging in terms of human rights. The HRAC helps us to better understand different perspectives on human rights (including the limits of corporate due diligence), address conflicting aims and take into account the rights of Indigenous peoples in our business activities. The council also contributes to building on our human rights-related strengths and identifying potential improvements (for more information, see page 160). In 2025, the councils once again provided valuable impetus for our contributions to sustainable development. The responsible balancing of economic, environmental and social aspects was central to this. For example, insights have been incorporated into our procurement process for renewable raw materials.

Another format is our Civil Society Forum, which enables the explanation of current and potential topics and issues and provides space for feedback from civil society (see page 160).

For a case-by-case dialog with stakeholders such as affected communities, we use the format of the Environmental Social Governance Council (ESGC) as an instrument where required. In this way, the viewpoints of relevant stakeholders, in particular vulnerable groups such as Indigenous peoples, can be incorporated at an early stage into the decision-making process on future investments. We also review current investments according to the sustainability criteria and employ suitable dialog formats on a case-by-case basis to incorporate the societal perspectives (see page 159).

Our involvement in multistakeholder and other initiatives represents a key component of our strategic approach in relation to affected communities and all workers in the value chain. BASF is involved in initiatives such as Cobalt for Development, the Roundtable on Sustainable Palm Oil and the Global Battery Alliance (see page 272).

BASF Report 2025
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Grievance mechanism and remedial actions

S3-3

The BASF Compliance Hotline is publicly accessible to everyone as a grievance mechanism; as such, it can also be used by affected communities worldwide and their representatives. For more information on how the problems raised and addressed are tracked and monitored, see page 293 onward.

Should concerns be raised or violations identified in relation to our own activities, we immediately take the actions required in order to examine concerns and eliminate any violations found. Whenever human rights violations on the part of our direct suppliers or in our supply chains come to our attention, we expect and demand that our direct suppliers immediately end these violations or investigate them appropriately. Where necessary, we support our suppliers in facing the associated challenges and in making improvements to their sustainability performance.At the same time, we also reserve the right, as a last resort, to seek out potential alternatives and to terminate supplier relationships in the event of continued violations of our standards.

Actions

S3-4

In order to mitigate negative impacts and risks while simultaneously leveraging opportunities related to affected communities along our value chains, we take concrete actions, which we explain below on the basis of the material subtopics for this chapter. These actions often entail decentralized measures, projects and initiatives that are not governed by a centrally managed action plan. Instead, they -- like our management and monitoring systems -- aim to ensure continuous optimization and further development and fall within the responsibility of the sites and Group companies concerned. This goes hand in hand with the BASF approach to sustainability steering (see page 150).

Actions to prevent potential adverse effects on health

We implement numerous actions aimed at mitigating the potential negative impacts of our production and our products on both the environment and society along the entire value chain (see page 157).

In order to minimize negative impacts and risks in the upstream value chain, we rely on dialog with our suppliers as well as the evaluation and further development of their sustainability performance. We support local initiatives to reduce potential adverse effects on health caused by the business activities of our suppliers. Our management processes come into effect in the event of specific incidents (see pages 265 and 269).

To prevent work-related injuries and their associated impacts on employees, their relatives and affected communities, we support and demand safe and risk-aware working practices, learning from incidents and the regular sharing of experiences among our employees. Employees in production also receive regular training on the safe handling of chemicals (see page 256). In addition, teams of experts at all of our sites deal with occupational health, occupational safety and environmental protection matters. The Corporate Center unit Corporate Environmental Protection, Health, Safety & Quality conducts regular audits to monitor compliance with internal and legal requirements (see page 251 and 202).

We also aim to minimize potential incidents impacting the environment and health through our targets for responsible and resource-efficient production, particularly our process safety target (see page 206). To reduce process safety incidents, we focus in particular on technical measures, digital solutions and a leadership culture that places even greater focus on safety awareness and dealing openly with mistakes. In addition, we are continuously refining and expanding our training methods and offerings to increase risk awareness and strengthen our safety culture.

Due to our focus on operational excellence (see also page 185), we continuously design more energy- and resource-efficient plants and processes. This helps to reduce emissions. We thus take various measures to reduce emissions to air, for example by using catalysts to reduce nitrogen oxides and feeding waste gases back into the production process. When it comes to emissions into water, our approach is to reduce wastewater volumes and contaminant loads at the source in our production processes and to reuse wastewater and material flows internally as far as possible. As part of our water protection concepts, we also conduct regular hazard assessments of our wastewater, evaluate it in terms of its risks and derive suitable monitoring measures (see page 205).

In order to safeguard water as a resource, we are involved in the Alliance for Water Stewardship, as well as networks such as the Alliance to End Plastic Waste and Operation Clean Sweep® to ensure that waste from plastics production does not enter the environment.

In order to minimize negative impacts and risks in the downstream value chain, we address the safe handling and use of chemical raw materials and products as part of our product and transportation safety. Before our products are launched on the market, they undergo various tests and evaluations -- depending on legal requirements and their application profile. On the basis of the results, we devise precautionary and protective measures and develop recommendations for safe handling. In order to ensure that our customers receive our goods in harmless condition as well as in safe packaging and transport containers, we rely on qualified selection, approval and clear labeling of packaging and transport containers, on documents accompanying transport and extensive checks (see page 204).

Misuse of our crop protection and seed products may have a negative impact on human health and the environment. We are therefore focusing our smart stewardship activities on education and continuously improving our solutions for farmers. In addition to aspects such as efficacy and productivity, this also encompasses the safe use of our products and reducing their impacts on the environment. Our commitment to safety includes not only our employees, but also our contractors, suppliers, neighbors and customers. Crop protection products must be used responsibly and require safety measures to protect farmers and other professional users against hazards. We therefore launched the Global Personal Protective Equipment (PPE) initiative in order to put the safety of users center stage. The Suraksha Hamesha program (translation from Hindi: “Safety all the time”), initiated by BASF in India, trains farmers and other users in the safe and responsible use of crop protection products and focuses on measures to minimize risk. Since 2016, around 998,000 farmers and 133,000 other users have been reached.

By systematically evaluating the sustainability performance of our suppliers and by cooperating closely with our partners where there is a need for improvement, we can verify whether negative impacts on health are being effectively prevented in our upstream value chain (see page 269). The traceability and assessment of our actions with respect to their efficacy in protecting affected communities in the areas around our own production sites are based on our global targets for responsible and resource-efficient production (for additional information, see page 32). To effectively prevent potential impacts along the downstream value chain, we regularly review the effectiveness of our product and transportation safety measures by means of Responsible Care audits (see page 203).

Actions to prevent land-related impacts in the supply chain

Through our business operations, we are connected with a large number of people worldwide who are either directly or indirectly influenced by our activities. In particular, the use of renewable raw materials can be associated with land-related impacts for local communities and Indigenous peoples. We meet our responsibility to respect human rights throughout the entire value chain, particularly in relation to vulnerable groups.

In fulfilling our responsibility to respect the land rights of affected communities, we rely on established monitoring systems. The overarching governance of human rights due diligence at BASF lies with the Compliance organization. In addition, several specialist units are responsible for steering specific human rights topics, for example through our Human Rights Expert Working Group (see page 291). We track the effectiveness of our activities to respect the rights of affected communities using the number of issues and incidents brought to our attention.

We expect that any development activity related to land use change respects the rights of Indigenous peoples and local communities to give or withhold their free, prior and informed consent (FPIC) where they hold legal, communal or customary rights in accordance with the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) and the social requirements of the High Carbon Stock (HCS) approach (see page 228). If concerns are raised or a violation is identified in relation to our own activities, we immediately take the action required in order to appropriately address and end the violation.

» For more information, see www.basf.com/forestprotection

In our continuous risk analyses, we take into account environmental and social aspects, such as working conditions and food safety, and expect our suppliers to comply with environmental and social standards based on our global Code of Conduct (see page 225). This applies, for example, when purchasing palm oil, palm kernel oil and their derivatives, which are some of our most important renewable raw materials; these are described in detail under E4 Biodiversity and Ecosystems (see page 228). Based on our global Supplier Code of Conduct, we have defined our expectations of suppliers in the palm-based value chain in an additional procurement policy (BASF Palm Sourcing Policy). In addition to certification standards, traceability and environmental aspects, it also addresses requirements relating to compliance with the principle of FPIC, labor and human rights, and the inclusion of smallholder structures. Our aim is to ensure that these raw materials come from sustainable, certified sources. As an extension of our BASF Palm Progress Report, the Care Chemicals operating division has published a comprehensive Responsible Sourcing Report each year since 2023.

» For more information on our voluntary commitment to palm oil products and the Responsible Sourcing Report, see basf.com/en/palm-dialog

We have also established dedicated processes for the sourcing of mineral raw materials to trace their origin in the supply chain. We have implemented the EU's Conflict Minerals Regulation, for example by carrying out a compliance check for the import of conflict materials into Europe in our ordering system. In this way, we aim to minimize the negative impact of BASF on affected communities (see page 271).

We seek regular dialog with our stakeholders to identify conflicting goals and include recognized certification standards in our decisions. Sourcing of lithium is an example here. Together with BMW, Mercedes-Benz, Fairphone, Daimler Truck and Volkswagen, we have been a member of the Responsible Lithium Partnership initiative since 2021. This initiative, which ended in spring 2025, promoted the responsible use of natural resources in the Salar de Atacama salt flat in Chile (see page 217). In addition, we gain insights into the perspectives of workers in the value chain through the exchange in multistakeholder initiatives, such as Cobalt for Development (see also page 272), the Global Battery Alliance (see also page 272) or the Responsible Mica Initiative (see also page 273), as well as through our involvement in other committees such as econsense, where we are the topic sponsor in the Human Rights & Value Creation cluster.

Actions promoting a positive contribution to food supply

The Agricultural Solutions division is helping to increase agricultural productivity while at the same time reducing environmental impact through chemical and biological crop protection products, seeds and traits, as well as new business models in the areas of digitalization and sustainability. With our innovations, we support our customers in reducing crop losses, achieving better yields and producing safe food. The commercial success of the Agricultural Solutions division therefore provides the basis for a positive contribution to food supply.

BASF invests in research and development to develop new and resistant seed varieties that can thrive better in different climate zones, under higher disease pressure and under changing climatic conditions. Moreover, we promote more sustainable growing methods that optimize the use of water and nutrients and protect biodiversity.

A further key area involves promoting digital solutions that help farmers to increase their yields. These technologies enable more precise use of fertilizers and crop protection products, which not only boosts efficiency but also minimizes the impact on the environment.

BASF is involved in various initiatives and works with various partners to strengthen food supply chains and improve access to food, particularly in emerging markets. For example, as part of our Smallholder Engagement program, we support Indigenous smallholder farmers in India with our “Healthy Soils, Prosperous Farmers” initiative and support them in building independent and sustainable livelihoods. Here, we place a special emphasis on women and young people. Through targeted skills development and improved market access, we aim to strengthen the health and resilience of the agroecosystems and value chains in which they operate. Since the start of the project, more than 8,000 smallholder farmers have been reached, whose household income is to be increased through innovative approaches such as mixed cropping and solar-powered drip irrigation. Implementation is carried out in strategic partnership with nongovernmental organizations such as Collectives for Integrated Livelihoods Initiatives, Seven Sisters Development Assistance, Solidaridad and the World Vegetable Center. The program pursues a dedicated action plan until 2030 and is expanding continuously, including by transferring the project foundations to Ethiopia (see also page 286).

Actions to promote the positive development of communities

Through our business activities, our stakeholder engagement and our societal engagement, we strive to have a positive economic, social and cultural influence on communities.

Our societal engagement activities focus on strengthening public health, promoting skills and protecting natural resources: We want to improve people's quality of life by preventing and combating diseases (health), promote educational equity, employability and economic participation (skills), and strengthen the appreciation and protection of natural resources (resources).

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In 2025, the BASF Group spent around €29 million on societal engagement. In the field of international development cooperation and disaster management, we supported the independent and nonprofit BASF Stiftung with donations for its international project work in cooperation with various organizations. The 2025 year-end donation campaign in favor of BASF Stiftung went to UNICEF and its effort to support malnourished children in Burundi. BASF topped up the donations made by employees of participating German Group companies by €100,000 to a total of over €375,000.

With our intrapreneurship program Starting Ventures, we support projects that – with entrepreneurial ideas, technical expertise and time resources – tackle local challenges together with partners on the ground and thus contribute to the U.N. Sustainable Development Goals (SDGs). A recent example of this is the More Technological Cooperatives project, which supports recycling cooperatives in Brazil in achieving higher incomes through improved sorting rates while also contributing to reducing the environmental impact. Our projects help people from low-income areas in the global south to improve their economic opportunities and their quality of life. At the same time, the program gives us access to new markets and partners. In 2025, implementation of a further nine Starting Ventures projects began in Africa, Asia and South America.

At many sites, BASF works with partners for high-quality education and greater educational equity, particularly for disadvantaged children and young people. For BASF, scientific education and education for sustainable development represent central capabilities that contribute to personal success and the resilience of society. For 28 years now, children and young people in 45 countries have been able to take part in experiments in BASF Kids' and Teens' Labs. In 2025, Kids' Lab was implemented for the first time in Nashik, India, at 18 local schools. More than 2,000 children and 35 mentors from disadvantaged Indigenous communities learned in interactive experiments on environmental pollution and climate change, for example, how they can work for the environment and society in their everyday lives.

The Young Voices for a Sustainable Future project was initiated in 2022 together with the nongovernmental organization JA Worldwide. This project enables young people to address sustainable development topics at a local level in partnership with BASF employees. As part of an innovation challenge, participants learn to recognize the impacts of climate change on their communities and how to influence the resulting challenges. In 2025, the project encouraged more than 1,500 young people in Brazil's Amazon region, the Philippines, Mexico, Nigeria, Thailand, Uruguay and the United Arab Emirates – supported by around 90 BASF employees – to actively take responsibility and drive positive change in their communities.

Through our activities in the domain of public health, we aim to improve the quality of life of people around the world by preventing and combating disease. We achieve this goal by partnering with the international community, including international healthcare, governmental and humanitarian organizations. More than 180 million Interceptor G2 mosquito nets have been supplied since 2019. Based on calculations by MedAccess, these long-lasting, insecticide-treated nets may therefore have prevented 360 million people from contracting malaria. BASF's commitment to eliminating malaria also comprises ongoing product innovation in combination with product safety training and education.

BASF Report 2025
(Consolidated) Sustainability Statement

Furthermore, BASF engages in projects to fortify food products with micronutrients, especially in countries of the Global South. We are active in multistakeholder alliances in order to achieve a sustainable impact through product solutions, technical support, scientific capacities and the development of partnerships. Since 2021, BASF has been a founding member of the Millers for Nutrition coalition, which pursues the objective of strengthening practices for fortifying food products in eight countries with a micronutrient deficiency. In 2025, BASF provided products to combat micronutrient deficiencies in more than 30 countries and delivered technical training in selected markets.

Through our Smallholder Engagement program, we support smallholder farmers in low and middle-income countries in creating an independent and sustainable livelihood locally. In doing so, we place particular emphasis on the areas of food safety and quality, building climate resilience and maintaining healthy and resilient ecosystems. Our program includes several projects and is based on a participatory approach with NGOs, research institutions and local governments. The aim is to promote the safe and responsible use of products and sustainable agricultural practices among local stakeholders. In this way, we ensure that our commitment is effective and that long-term improvements in livelihoods are achieved.

One example is the KAJVE 2.0 project, which BASF is implementing in cooperation with the nongovernmental organization Solidaridad and the International Center for Tropical Agriculture (CIAT). The aim of the partnership is to strengthen smallholder coffee farmers in Indigenous communities in the state of Chiapas, Mexico, and to establish more sustainable supply chains for coffee. The focus lies on improving the income and resilience of coffee farmers by promoting regenerative farming methods and innovative agroforestry systems, while at the same time advancing climate and environmental protection. In addition, the exchange of knowledge within the communities and the safe and responsible use of BASF technologies are promoted. Since the start of the project in 2023, around 500 smallholder farmers have taken part in training and further education measures. In the 2024/2025 cultivation season, participants benefited from an average productivity increase of 35% per hectare.

Societal engagement activities can only unlock their full potential if they are strategically planned, professionally managed and assessed in terms of their effectiveness. Therefore, BASF's internal societal engagement policy stipulates that Group companies measure their societal engagement activities using the internationally established IOOI method (input -- output -- outcome -- impact) and make adjustments where necessary.

Global targets

S3-5

Many of our sustainability-related corporate targets (for additional information, see page 32 onward) contribute to the protection of affected communities. These include our climate protection targets to reduce our greenhouse gas emissions (see page 189), our responsible procurement target (see page 273), our sustainable water management target (see page 218) and our targets for safe and resource-efficient production (see page 260 and 206). Beyond these targets, BASF has not set itself a specific target for the topics identified as material in the area of affected communities.

In general, we do not want to be associated with human rights violations and we meet our human rights-related responsibility toward affected communities. In doing so, we take into account in particular the land use rights and specific needs of vulnerable groups such as Indigenous peoples and seek open dialog and communication with our neighbors in order to continuously strengthen trust in our business activities.

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We strive to be a good neighbor at our sites, respect existing rights and respond to the needs of local communities and their residents. We create jobs and contribute to local value creation. We strive to protect the livelihoods of our neighbors and, in particular, show consideration for vulnerable groups such as Indigenous peoples and smallholders. We are committed to open communication and dialog between affected communities and BASF in order to strengthen trust in our activities. We discuss the sustainability topics that are material for BASF at regular meetings with external stakeholders as part of our strategic stakeholder engagement as well as in meetings with investors. On this basis, stakeholder expectations are continuously incorporated into the development of sustainability management approaches, targets and principles.

Societal engagement is a cornerstone of our corporate responsibility and part of our sustainability management. We want to contribute to an improved quality of life for everyone. To this end, we have firmly anchored the three pillars of sustainability (economy, environment and society) within our corporate purpose, our strategy, our objectives and our activities throughout the value chain. Our societal engagement is voluntary and goes beyond what is required by law, with the main aim to achieve positive impacts on society, the environment and BASF alike. Through our activities, we strive to strengthen the communities surrounding our sites worldwide and contribute to the achievement of the Sustainable Development Goals (SDGs).

In order to meet the nutrition needs of the future global population, more food needs to be produced using fewer resources. Together with our customers, we want to identify the most important levers for a more sustainable value chain in the food and feed industry. Sustainable productivity is key to safeguarding food supply in an environmentally friendly way, and our crop protection and seed products play a vital role in this regard.

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At a Glance

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Further Information

Governance

G1 Business Conduct

ESRS G1

As an international chemical company, we operate in countries and markets with different guidelines and conditions. Our global values and standards serve as the pillars of our corporate culture. They guide us to act responsibly in all our activities and secure our license to operate. By living these values every day, we aim to earn and maintain the respect and trust of our customers, partners and employees.

ESRS 2 IRO-1

The double materiality assessment that we conducted in 2025 defined Business Conduct as material (see page 163) and identified three material impacts (see the following table). We record opportunities and risks as part of our general opportunity and risk management (for additional information, see page 90 onward). In addition, specific compliance risks are identified through regular risk assessments of our operating divisions and Group companies (see page 295). We also conduct risk-based checks of our global business partners for any signs of corrupt behavior (see section Business partner due diligence).

Results of the double materiality assessment for G1 Business Conduct: Impacts

Impact	Evaluation	Position in the value chain	Description
Global Code of Conduct	Positive	BASF's own operations; upstream and downstream value chain	Our global Code of Conduct has a positive impact on the workforce in our company and on our value chains.
Global compliance measures and systems	Positive	BASF's own operations; upstream and downstream value chain	Our global compliance measures and systems have a positive impact on our own workforce and other employees in our value chains.
Anticorruption training	Positive	BASF's own operations	In the mandatory trainings, employees learn how to be vigilant in order to prevent any form of bribery or corruption. In this way, we contribute to a business environment in which corruption and bribery are not tolerated. By being perceived and valued as a trustworthy company, BASF can help to reduce corruption and bribery.

Strategy and governance

ESRS 2 GOV-1 ESRS 2 GOV-4 G1-1

General information on overarching policies such as our Policy Statement on Human Rights, our Code of Conduct or the policy for our compliance management system can be found in the General Disclosures of this (Consolidated) Sustainability Statement (see page 150). The specific aspects of these policies are explained in this chapter.

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Fundamental principles of responsible corporate governance

ESRS 2 GOV-1 G1-1 G1-3

We are committed to doing business in a responsible and respectful manner. Adherence to compliance standards is the foundation of responsible corporate governance – this is embedded in our CORE corporate values (see page 16). Our standards are based on applicable laws and regulations, in some cases exceed them and take internationally recognized principles into account. We respect and promote

The Universal Declaration of Human Rights of the United Nations (U.N.) and the two U.N. Human Rights Covenants
The Ten Principles of the UN Global Compact
The core labor standards of the International Labour Organization (ILO) and the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy
The U.N. Guiding Principles on Business and Human Rights
The OECD Guidelines for Multinational Enterprises
The Responsible Care® Global Charter of the International Council of Chemical Associations (ICCA)
The German Corporate Governance Code (GCGC)

Our values, corporate principles and guidelines are firmly anchored in our Corporate Governance. The Board of Executive Directors is responsible for ensuring that the company's activities comply with the applicable legislation and regulatory requirements as well as internal corporate requirements and ethical business practices. This includes the establishment of a compliance management system as well as embedding a company-wide compliance culture with undisputed standards. Our Code of Conduct firmly embeds these mandatory standards into our employees' day-to-day business. The members of the Board of Executive Directors are also expressly committed to follow these principles. The Audit Committee established by the Supervisory Board checks the effectiveness of the compliance management system as part of its monitoring activities for the company's internal control and risk management system.

Compliance organization

ESRS 2 GOV-1 G1-3

The head of our Legal and Compliance organization also acts as BASF Chief Compliance Officer (CCO). The CCO reports directly to the Chairman of the Board of Executive Directors and manages the further development of our global Compliance organization and compliance management system. Support is provided by the Corporate Compliance unit and more than 100 compliance officers and representatives in the regions¹ and countries worldwide as well as in the operating divisions, service units and in the Corporate Center. Key compliance topics are regularly discussed in the compliance committees established at global and regional level. The Compliance organization reports to the Supervisory Board's Audit Committee twice a year on the status and key developments of the Compliance Program. In the event of significant incidents, the Audit Committee is immediately informed by the Board of Executive Directors. The Board of Executive Directors reports to the Supervisory Board regularly, without delay and comprehensively, on all issues important to the company, including compliance, and coordinates the company's strategic direction with the Supervisory Board.

To ensure that members of the Board of Executive Directors have relevant expertise with respect to business conduct, BASF's long-term succession planning takes into account the role model function of potential candidates in implementing the corporate values as well as various diversity criteria (see page 116). As part of their onboarding, newly appointed members of the Board of Executive Directors are individually briefed on BASF's Compliance Program, the compliance management system, and the legal and internal corporate governance requirements. The members of the Board of Executive Directors

¹ The regional structures were dissolved as part of the new strategy. We are reviewing the compliance officer structure in this context.

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together with senior management play a key role in our compliance culture. All new Supervisory Board members also familiarize themselves with the BASF Code of Conduct at the beginning of their term of office. Supervisory Board members who serve on the Audit Committee also receive separate training on our Compliance Program. Due to their many years of leadership experience within the BASF Group, all members of the Board of Executive Directors are very familiar with corporate governance, culture and policies, and in particular with the Code of Conduct. On the Supervisory Board, Dr. Kurt Bock, Prof. Dr. Stefan Asenkerschbaumer, Alessandra Genco and Tamara Weinert have in-depth knowledge of corporate governance and corporate policy thanks to their decades of management experience.

Human rights due diligence

ESRS 2 GOV-4

Human rights due diligence is an integral part of our responsible corporate governance and our strategy. We see human rights due diligence as an important, comprehensive task we can only fulfill if everyone in the entire organization works together. We are committed to respecting internationally recognized human rights in our own operations and promoting them along our value chains. In our own operations, we are strictly careful not to cause or contribute to human rights violations.

Part of our corporate value "responsible" (see page 16) is that we strive to apply high standards for responsible labor standards and the protection of health and safety worldwide. In order to meet this high standard and our commitment, we developed an integrated and risk-based approach as well as clear processes for monitoring and managing human rights risks.

We want to ensure that we:

Identify, weight and prioritize our human rights risks through regular and incident-related analyses
Address risks with effective preventive measures and with appropriate remedial actions in the case of violations
Integrate the measures into all relevant functions and operational processes and regularly review their effectiveness

Effective cross-functional cooperation is a crucial building block for this – we have structured our organization accordingly. The head of our Legal and Compliance organization also acts as Chief Human Rights Officer and is responsible for monitoring overall risk management, including human rights risks. Our compliance organization reports regularly to the Board of Executive Directors and the Audit Committee.

Our Corporate Compliance unit is responsible for the overarching governance of human rights due diligence, ensuring that human rights-related assessments are integrated into our governance and decision-making processes – for example, in the case of investments and acquisitions. In addition, various specialist units are responsible for managing specific human rights issues. Experts in the fields of international labor standards, environmental protection, health and safety, as well as corporate security take a risk-based approach to ensure that we respect the relevant human rights in our own activities.

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Our internal cross-unit Human Rights Expert Working Group, managed by the Corporate Compliance unit, facilitates close collaboration and exchange on current human-rights related topics and developments between the above mentioned specialist units, which also include specialists from the areas of Procurement, Legal, Human Resources, Sustainability, Communication and Government Relations. Additionally, our approach involves structured collaboration with the operating divisions to identify and actively address division-specific risks. This allows us to ensure that we take a holistic approach to our responsibility for human rights and that we can continuously improve. Like our Corporate Compliance unit, the aforementioned specialist units have their own global organization, train it and are supported by it in the global implementation of due diligence processes and measures worldwide in the countries in which BASF is active. The Expert Working Group, among other things, provides support and advice in challenging and critical situations, in the further development of internal processes and in the creation of information and training opportunities. We also obtain additional external human rights expertise through our Human Rights Advisory Council (see page 160). In addition, we are a founding member of the UN Global Compact and a member of the Global Business Initiative on Human Rights and are involved in initiatives such as Together for Sustainability (TfS) and Responsible Care® (see page 269).

> For more information on our Policy Statement on Human Rights and our human rights commitment and approach, see basf.com/humanrights

The following chapters of this (Consolidated) Sustainability Statement address our corporate due diligence obligations in further detail.

Additional information on corporate due diligence in this report

Corporate Governance	From page 114 onward
E1 Climate Change	From page 172 onward
E2 Pollution Prevention	From page 199 onward
E3 Water	From page 213 onward
E4 Biodiversity and Ecosystems	From page 221 onward
E5 Resource Use and Circular Economy	From page 232 onward
S1 Own Workforce	From page 248 onward
S2 Workers in the Value Chain	From page 264 onward
S3 Affected Communities	From page 275 onward

Explanation of the material impacts of our business

Our global Code of Conduct as well as our compliance management system and associated measures promote a positive business environment both for our employees and throughout the upstream and downstream value chain. This contributes to an environment characterized by respect and ethical and responsible conduct in accordance with applicable laws.

Contribution of our global compliance measures and systems

G1-1

Our Compliance Program is based on our corporate values and voluntary commitments as well as applicable international standards. We are convinced that compliance with these principles plays a key role in ensuring our company's long-term success.

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The global program describes our commitment and requirements for responsible conduct of all BASF employees in their interactions with business partners, officials, coworkers and society. The main guidelines are primarily summarized in our BASF policies on compliance, human rights, labor standards and in the Supplier Code of Conduct (see page 150). With our comprehensive management and monitoring systems, we want to ensure that we act in accordance with the applicable laws and uphold our responsibility to the environment and society. This also involves system audits carried out by the Corporate Audit unit (see page 296).

Through our Compliance Program, we aim to create positive impacts for employees across the entire value chain, for example by creating an environment that reflects our values and in which human rights are respected. We promote a culture in which concerns can be openly addressed, making it easier to report potential violations of applicable law or internal company guidelines. This helps us to uncover potential shortcomings and take appropriate measures to remedy them.

Contribution of our global Code of Conduct

G1-1

At the core of our Compliance Program is the global, standardized Code of Conduct, which is overseen by the BASF Board of Executive Directors and to which all employees and leaders must adhere. It covers topics ranging from corruption and antitrust laws to human rights, labor standards, conflicts of interest, whistleblower protection, trade control and data protection. The Code of Conduct is supplemented by additional global and regional requirements that address specific topics such as corruption and conflicts of interest in more detail. Through our Code of Conduct, we aim to generate positive impacts on compliance with these rights in our own business activities and in the upstream and downstream value chain. Accordingly, we have specified our responsibility for human rights in our Code of Conduct and Policy Statement on Human Rights and embedded this in our Supplier Code of Conduct. The latter indicates that we expect our business partners to comply with prevailing laws, regulations and internationally recognized principles.

For the success of compliance in the company, it is crucial that values and commitments are lived within the company. The principles embedded in our Code of Conduct are established and recognized in our day-to-day business. We expect all employees to act in line with these principles.

> For more information on the Code of Conduct, see basf.com/code-of-conduct

Contribution of our training courses to the prevention of corruption and bribery

G1-3

Workshops and mandatory training are a key element in preventing compliance violations and are conducted on an ongoing basis either in person or online. Within a prescribed time frame, all employees are required to complete basic, refresher or specialized training on topics such as antitrust legislation, money laundering and trade control regulations. Refresher training must be repeated every two years. Training materials and formats are continuously updated taking into account the specific risks of individual target groups and business areas, and include training content on the prevention of corruption and bribery as well as information about our grievance mechanisms.

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Actions

ESRS 2 GOV-4

While our responsible corporate governance measures are implemented centrally and globally, they are not governed by a centrally managed action plan. This goes hand in hand with the BASF approach to sustainability steering (see page 150).

Our primary goal is to prevent violations from the outset and we rely chiefly on the following actions:

Training on the BASF Code of Conduct
BASF Compliance Hotline
Risk analyses
Business Partner Due Diligence

Information offerings and training to strengthen our compliance culture

G1-1 G1-3

In 2025, we registered more than 111,000 participations worldwide (2024: >120,000) in our Code of Conduct trainings. In total, more than 93,000 training hours were completed (2024: 105,000). Functions-at-risk are fully covered by the training program. Training data is collected through documentation in our learning management system as well as individual decentralized reports from Group companies.

Leaders play a key role in our compliance culture by embodying and communicating our values both internally and externally. In addition to special workshops on integrity as a leadership task for newly appointed senior executives, separate training sessions were also offered in 2025 for the managing directors of BASF Group companies.

The online version of the BASF Code of Conduct is aimed at our employees and offers user-friendly features such as case studies, FAQs and additional references. We continuously provide our employees worldwide with up-to-date content such as videos, links to specialist units and requirements as well as direct contact to subject matter experts on the internal online platform and the corresponding app.

Other binding governance documents (policies, corporate requirements) are provided on an internal digital platform that offers our employees an advanced search function and context-based links to further information. The managing directors of BASF Group companies can find important information and assistance on ensuring compliance in their Group companies on an intranet page set up especially for them.

We particularly encourage our employees to actively and promptly seek guidance if in doubt. They can consult their supervisors, specialist units, such as the Corporate Legal unit, and the BASF compliance officers and representatives. In addition, the internal compliance information platform and the corresponding app provide continuous access to advice through direct contact channels.

Grievance procedure for monitoring adherence to our compliance principles

G1-1

BASF's Compliance Hotline serves as a grievance mechanism and is open to all BASF employees as well as external stakeholders, particularly workers in our value chains (see page 268). The hotline can be used to raise questions or concerns about potential or actual misconduct, as well as to report violations of regulations, laws, BASF requirements or BASF's global Code of Conduct. Reports may address any topic covered by the global BASF Code of Conduct, including human rights and environmental issues. Individuals submitting a report have the option to remain anonymous. The Compliance Hotline is explicitly mentioned during training courses and in the context of specific campaigns, such as during our Global Compliance Week in November 2025.

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Availability, confidentiality, and protection from retaliation

To ensure confidentiality, we have contracted an independent external provider to operate this global Compliance Hotline. Reported cases are systematically documented and processed worldwide using a single, uniform system. The central point of contact is a website that informs all employees worldwide about the hotline and the grievance procedure in their national language. In addition to local phone numbers, the website also offers an online contact option. The website is also available to third parties such as suppliers (see page 268), partners and the public. All relevant information, including the rules of procedure, is publicly available on our website in over 50 languages.

Handling compliance reports

We take reports and complaints very seriously and follow up on them. An electronic summary of the concerns is forwarded only to the responsible employees of the BASF Compliance Team, who review the case and decide on further actions. Depending on the circumstances, various BASF specialist units may be involved in the investigation. In certain cases, we may also involve external lawyers or subject matter experts in the investigation, if necessary. We aim to always respond promptly to violations, to process all concerns promptly and to provide feedback on the status.

Remedial measures are determined after the investigation, depending on the severity of the specific case. Examples of such measures include verbal warnings and training. In individual cases, we take internal disciplinary action in accordance with uniform standards up to termination of employment.

We do not tolerate any retaliation against anyone who, in good faith, reports a concern or participates in an investigation, even if the complaint proves to be unfounded. Retaliation is strictly prohibited according to our Code of Conduct and would be treated as serious misconduct. Our procedures are based on the legal requirements for whistleblower protection to which BASF SE and other Group companies are subject.

G1-3

Each concern is documented according to specific criteria, properly investigated in line with standard internal procedures and answered as quickly as possible. The principles of an investigation include objectivity, independence, accuracy, confidentiality and fairness, as well as respect for human rights and other legal provisions. The responsible Compliance Officers and employees of the Compliance organization designated by them are responsible for receiving reports and initiating an appropriate investigation process. The procedure for handling compliance reports is set out in an internal requirement. The outcome of the investigation as well as any measures taken are documented accordingly and included in internal reports.

The grievance procedure is analyzed and evaluated annually for its appropriateness and effectiveness. This includes analyzing the number of complaints received, their distribution, processing status and derived measures.

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Reported cases and follow-up measures

We consider the number of cases reported through our reporting channels and the resulting follow-up measures, including disciplinary actions, court convictions and internal audits conducted in this area to be key indicators of the effectiveness of our compliance management system and adherence to our Code of Conduct.

In 2025, the BASF Compliance Hotline received 739 reports (2024: 751). These reports are recorded in our global compliance case management system. The information received related to all categories of our Code of Conduct, including respect in the workplace, corruption, handling of company property and environmental, health and safety issues.

We carefully investigate all cases of suspected misconduct that come to our attention via the BASF Compliance Hotline or other channels and, when necessary, take countermeasures on a case-by-case basis. These included, for example, improved control mechanisms, additional informational and training measures, clarification and expansion of the relevant internal regulations, as well as disciplinary action as appropriate. Most of the substantiated cases related to violations of our principles on respect in the workplace and personal misconduct in connection with inappropriate handling of conflicts of interests or the protection of company property. In such individual cases, we took disciplinary action in accordance with uniform internal standards and also pursued claims for damages where there were sufficient prospects of success. In 2025, violations of our Code of Conduct led to termination of employment in 59 cases (2024: 67). This affected various groups of employees, including managers.

G1-4

As in the previous year, in the reporting year there were no court convictions for violations of anticorruption and antibribery regulations.

Identification of compliance risks

Based on ongoing systematic risk analysis we identify and evaluate material risks from compliance violations, including corruption. This is done from the perspective of the divisions and the Group companies. Accordingly, we implement targeted local and unit-specific requirements. Employees responsible for procurement are considered to be most at risk of corruption and bribery. Consequently, these employees in our Procurement organizations are prohibited from accepting gifts of any kind, in accordance with our Zero Gift Policy. Training materials and formats (see section Information offerings and training to strengthen our compliance culture) are continuously updated, taking into account the specific risks of individual target groups and business areas.

The regular compliance audits performed by the Corporate Audit unit are another source for the systematic identification of risks. These risks are documented in the relevant risk or audit report. The same applies to specific risk minimization initiatives as well as the time frame for their implementation. The Corporate Audit unit continuously monitors compliance with guidelines.

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Business partner due diligence

G1-4

We conduct ongoing risk-based reviews of our business relationships worldwide for signs of corrupt behavior, human rights violations, or noncompliance with internationally recognized ESG standards. Based on our global requirement "Third-Party Compliance Due Diligence," we use an IT solution to audit all of our sales intermediaries for potential compliance risks. We have established control mechanisms accordingly. BASF compliance experts evaluate system alerts and initiate appropriate control measures. The results are then documented.

A dedicated global Supplier Code of Conduct (see page 267) also applies to our suppliers, which covers compliance with environmental, social and corporate governance standards, among other requirements. With regard to environmental protection, health and safety, we regularly review our performance as part of our Responsible Care Management System, which also covers audits (see page 201).

Furthermore, as part of our trade control processes, we continuously check whether persons, companies or organizations appear on sanction lists due to suspicious or illegal activities and whether there are business processes with business partners from or in countries under embargo. Sanctioned persons, companies or organizations are excluded as business partners.

Global targets

Even though BASF has not set a specific target for the topics identified as material in the area of business conduct, we nevertheless track the effectiveness of our actions and requirements in this field. The corporate requirements cited in this chapter are aimed at continuous optimization and further development. Our Group-wide Compliance Program aims to ensure adherence to our compliance principles.

The internal Corporate Audit unit also regularly reviews the effectiveness of our systems, including our compliance management system, and whether compliance principles are being adhered to. All areas in which compliance violations could occur are covered. It checks that employees uphold regulations and make sure that the established processes, procedures and controls are appropriate and sufficient to minimize potential risks or preclude violations in the first place. In 2025, Corporate Audit conducted and documented 50 such audits Group-wide (2024: 68).

BASF Report 2025
(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Appendix to the (Consolidated) Sustainability Statement

ESRS 2 SBM-3 ESRS 2 IRO-2

The table below illustrates the data points in ESRS 2 and topical ESRS that derive from other EU legislation.

Disclosure Requirement	Data point		SFDR^{a} reference	Pillar 3^{b} reference	Benchmark Regulation^{c} reference	EU Climate^{d} Law reference	Chapter/explanation	Page
ESRS 2 GOV-1	21d	Board's gender diversity	x		x		Corporate Governance Report	118, 124
ESRS 2 GOV-1	21e	Percentage of board members who are independent			x		Corporate Governance Report	124
ESRS 2 GOV-4	30	Statement on due diligence	x				Sustainability Statement – Business Conduct	290
ESRS 2 SBM-1	40d (i)	Involvement in activities related to fossil fuel activities	x	x	x		Sustainability Statement – General Disclosures	154
ESRS 2 SBM-1	40d (ii)	Involvement in activities related to chemical production	x		x		Sustainability Statement – General Disclosures	154
ESRS 2 SBM-1	40d (iii)	Involvement in activities related to controversial weapons	x		x		Sustainability Statement – General Disclosures	154
ESRS 2 SBM-1	40d (iv)	Involvement in activities related to cultivation and production of tobacco			x		Sustainability Statement – General Disclosures	154
ESRS E1-1	14	Transition plan to reach climate neutrality by 2050				x	Sustainability Statement – Climate Change	179
ESRS E1-1	16g	Undertakings excluded from Paris-aligned Benchmarks		x	x		Sustainability Statement – Climate Change	180
ESRS E1-4	34	GHG emission reduction targets	x	x	x		Sustainability Statement – Climate Change	189
ESRS E1-5	38	Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)	x				Sustainability Statement – Climate Change	192
ESRS E1-5	37	Energy consumption and mix	x				Sustainability Statement – Climate Change	192
ESRS E1-5	40 to 43	Energy intensity associated with activities in high climate impact sectors	x				Sustainability Statement – Climate Change	192
ESRS E1-6	44	Gross Scope 1, 2, 3 and Total GHG emissions	x	x	x		Sustainability Statement – Climate Change	194
ESRS E1-6	53 to 55	Gross GHG emissions intensity	x	x	x		Sustainability Statement – Climate Change	194
ESRS E1-7	56	GHG removals and carbon credits				x	Not applicable
ESRS E1-9	66	Exposure of the benchmark portfolio to climate-related physical risks			x		Not applicable

BASF Report 2025

(Consolidated) Sustainability Statement

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Disclosure Requirement	Data point	SFDR^{a} reference	Pillar 3^{b} reference	Benchmark Regulation^{c} reference	Chapter/explanation	Page
ESRS E1-9	66a	Disaggregation of monetary amounts by acute and chronic physical risk	x		Not applicable
ESRS E1-9	66c	Location of significant assets at material physical risk	x		Not applicable
ESRS E1-9	67c	Breakdown of the carrying value of its real estate assets by energy-efficiency classes	x		Not applicable
ESRS E1-9	69	Degree of exposure of the portfolio to climate-related opportunities		x	Not applicable
ESRS E2-4	28	Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil	x		Sustainability Statement – Pollution Prevention	209
ESRS E3-1	9	Water and marine resources	x		Sustainability Statement – Water	214
ESRS E3-1	13	Dedicated policy	x		Sustainability Statement – Water	214
ESRS E3-1	14	Sustainable oceans and seas	x		Not material
ESRS E3-4	28c	Total water recycled and reused	x		Sustainability Statement – Water	219
ESRS E3-4	29	Total water consumption in m3 per net revenue from own operations	x		Sustainability Statement – Water	220
ESRS 2 SBM-3 – E4	16a (i)		x		Not applicable
ESRS 2 SBM-3 – E4	16b		x		Sustainability Statement – Biodiversity and Ecosystems	222
ESRS 2 SBM-3 – E4	16c		x		Sustainability Statement – Biodiversity and Ecosystems	231
ESRS E4-2	24b	Sustainable land/agriculture practices or policies	x		Sustainability Statement – Biodiversity and Ecosystems	226
ESRS E4-2	24c	Sustainable oceans/seas practices or policies	x		Not material
ESRS E4-2	24d	Policies to address deforestation	x		Sustainability Statement – Biodiversity and Ecosystems	225
ESRS E5-5	37d	Nonrecycled waste	x		Sustainability Statement – Resource Use and Circular Economy	239
ESRS E5-5	39	Hazardous waste and radioactive waste	x		Hazardous waste: Sustainability Statement – Resource Use and Circular Economy; radioactive waste: not material	240
ESRS 2 SBM-3 – S1	14f	Risk of incidents of forced labor	x		Sustainability Statement – Own Workforce	250
ESRS 2 SBM-3 – S1	14g	Risk of incidents of child labor	x		Sustainability Statement – Own Workforce	250
ESRS S1-1	20	Human rights policy commitments	x		Sustainability Statement – Own Workforce	249

BASF Report 2025

(Consolidated) Sustainability Statement | 298

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Disclosure Requirement	Data point	SFDR^{a} reference	Pillar 3^{b} reference	Benchmark Regulation^{c} reference	Chapter/explanation	Page
ESRS S1-1	21	Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8		x	Sustainability Statement – Own Workforce
Sustainability Statement – Business Conduct	249, 250, 289
ESRS S1-1	22	Processes and measures for preventing trafficking in human beings	x		Sustainability Statement – Own Workforce	250
ESRS S1-1	23	Workplace accident prevention policy or management system	x		Sustainability Statement – Own Workforce	252
ESRS S1-3	32c	Grievance/complaints handling mechanisms	x		Sustainability Statement – Own Workforce
Sustainability Statement – Business Conduct	255, 294
ESRS S1-14	88b + 88c	Number of fatalities and number and rate of work-related accidents	x	x	Sustainability Statement – Own Workforce	263
ESRS S1-14	88e	Number of days lost to injuries, accidents, fatalities or illness	x		Sustainability Statement – Own Workforce	263
ESRS S1-16	97a	Unadjusted gender pay gap	x	x	Not material
ESRS S1-16	97b	Excessive CEO pay ratio	x		Not material
ESRS S1-17	103a	Incidents of discrimination	x		Sustainability Statement – Own Workforce	263
ESRS S1-17	104a	Nonrespect of UNGPs on Business and Human Rights and OECD guidelines	x	x	Not applicable
ESRS 2 SBM-3 – S2	11b	Significant risk of child labor or forced labor in the value chain	x		Sustainability Statement – Workers in the Value Chain	265
ESRS S2-1	17	Human rights policy commitments	x		Sustainability Statement – Workers in the Value Chain
Sustainability Statement – Business Conduct	265, 289
ESRS S2-1	18	Policies related to value chain workers	x		Sustainability Statement – Workers in the Value Chain	267
ESRS S2-1	19	Nonrespect of UNGPs on Business and Human Rights and OECD guidelines	x	x	Not applicable
ESRS S2-1	19	Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8		x	Sustainability Statement – Workers in the Value Chain	266
ESRS S2-4	36	Human rights issues and incidents connected to its upstream and downstream value chain	x		Not applicable

BASF Report 2025

(Consolidated) Sustainability Statement | 299

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Disclosure Requirement	Data point	SFDRA reference	Pillar 3b reference	EU Climated Law reference	Chapter/explanation	Page
ESRS S3-1	16	Human rights policy commitments	x		Sustainability Statement – Affected Communities
Sustainability Statement – Business Conduct	276, 289
ESRS S3-1	17	Nonrespect of UNGPs on Business and Human Rights, ILO Principles and OECD guidelines	x	x	Not applicable
ESRS S3-4	36	Human rights issues and incidents	x		Not applicable
ESRS S4-1	16	Policies related to consumers and end users	x		Not material
ESRS S4-1	17	Nonrespect of UNGPs on Business and Human Rights and OECD guidelines	x	x	Not material
ESRS S4-4	35	Human rights issues and incidents	x		Not material
ESRS G1-1	10b	United Nations Convention against Corruption	x		Sustainability Statement – Business Conduct	289
ESRS G1-1	10d	Protection of whistleblowers	x		Sustainability Statement – Business Conduct	294
ESRS G1-4	24a	Fines for violation of anticorruption and antibribery laws	x	x	Sustainability Statement – Business Conduct	295
ESRS G1-4	24b	Standards of anticorruption and antibribery	x		Sustainability Statement – Business Conduct	292

a Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosure requirements in the financial services sector (Sustainable Finance Disclosure Regulation, SFDR)

b Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Text with EEA relevance (Capital Requirements Regulation)

c Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014

d Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 ("European Climate Law")

BASF Report 2025

(Consolidated) Sustainability Statement | 300

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

2 BASF Report 2025

Consolidated Financial Statements

Statement of Income 302
Statement of Income and Expense Recognized in Equity 303
Balance Sheet 304
Statement of Cash Flows 306
Statement of Changes in Equity 307

Notes 309

1 Summary of accounting policies 309
2 Scope of consolidation 316
3 Acquisitions and divestitures 318
4 BASF Group list of shares held 325
5 Reporting by segment and region 326
6 Earnings per share 333
7 Sales revenue 334
8 Functional costs 336
9 Other operating income and expenses 337
10 Investments accounted for using the equity method and other financial assets 339
11 Financial result 347
12 Income taxes 348
13 Noncontrolling interests 353
14 Fixed assets 354
15 Leases 364
16 Inventories 366
17 Receivables and miscellaneous assets 367
18 Capital, reserves and retained earnings 370

19 Other comprehensive income 372
20 Liabilities 373
21 Provisions for pensions and similar obligations 376
22 Other provisions 385
23 Risks from litigation and claims 388
24 Other financial obligations 389
25 Supplementary information on financial instruments 389
26 Capital structure management and statement of cash flows 407
27 Personnel expenses and employees 412
28 Share price-based compensation programs and BASF incentive share program 413
29 Compensation of the Board of Executive Directors and Supervisory Board 416
30 Related party transactions 417
31 Services provided by the external auditor 419
32 Declaration of Conformity with the German Corporate Governance Code 420
33 Non-adjusting events after the balance sheet date 420

BASF Report 2025
Consolidated Financial Statements and Notes | 301

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Statement of Income

BASF Group

Statement of income

Million €	Explanations in Note	2025	2024 restated^a
Sales revenue	[7]	59,657	61,444
Cost of sales	[8]	-45,298	-46,225
Gross profit on sales		14,359	15,219
Selling expenses	[8]	-7,514	-7,603
General administrative expenses	[8]	-1,338	-1,333
Research and development expenses	[8]	-1,995	-1,969
Other operating income	[9]	2,328	1,303
Other operating expenses	[9]	-3,957	-3,809
Income from integral companies accounted for using the equity method	[10]	-251	2
Income from operations (EBIT)	[5]	1,634	1,810
Income from non-integral companies accounted for using the equity method		1,306	651
Income from other shareholdings		55	72
Expenses from other shareholdings		-48	-121
Net income from shareholdings	[10]	1,313	602
Interest income		338	368
Interest expenses		-893	-922
Interest result		-555	-554
Other financial income		235	264
Other financial expenses		-180	-262
Other financial result		55	2
Financial result	[11]	-500	-552
Income before income taxes		2,447	1,861
Income taxes	[12]	-907	-573
Income after taxes from continuing operations		1,540	1,288
Income after taxes from discontinued operations	[3]	185	165
Income after taxes		1,726	1,453
of which attributable to shareholders of BASF SE (net income)		1,619	1,298
attributable to noncontrolling interests	[13]	107	155
Earnings per share from continuing operations (€)		1.63	1.29
Earnings per share from discontinued operations (€)		0.18	0.16
Earnings per share (€)	[6]	1.82	1.45
Dilution effect (€)	[6]	0.00	0.00
Diluted earnings per share (€)	[6]	1.81	1.45

a Owing to the planned divestiture of the BASF's automotive OEM coatings, automotive refinish coatings and surface treatment businesses to Carlyle, the affected business units have been classified as discontinued operations in accordance with IFRS 5 retroactively as of January 1, 2025. The earnings figures listed up to and including income taxes for 2024 have been restated.

BASF Report 2025

Statement of Income

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Statement of Income and Expense Recognized in Equity

BASF Group

Statement of comprehensive incomeᵃ

Million €	2025	2024
Income after taxes	1,726	1,453
Remeasurement of defined benefit plansᵇ	858	1,727
Deferred taxes on the remeasurement of defined benefit plans	-316	-273
Investments accounted for using the equity method – share of nonreclassifiable gains/losses (after taxes)	22	23
Nonreclassifiable gains/losses	563	1,477
Unrealized gains/losses from debt instruments measured at fair value through other comprehensive income	2	–
Reclassification of realized gains/losses from debt instruments measured at fair value recognized in the statement of income	-5	-1
Unrealized gains/losses in connection with cash flow hedges	-252	44
Reclassification of realized gains/losses recognized in the statement of income in connection with cash flow hedges	343	-103
Unrealized gains/losses from currency translation	-2,119	632
Reclassification of realized gains/losses from currency translation recognized in the statement of income	34	-10
Deferred taxes on reclassifiable gains/losses	-24	7
Investments accounted for using the equity method – share of reclassifiable gains/losses (after taxes)	-309	70
Investments accounted for using the equity method – reclassification of realized gains/losses recognized in the statement of income	-2	45
Reclassifiable gains/losses	-2,331	684
Other comprehensive income after taxes	-1,768	2,161
of which attributable to shareholders of BASF SE	-1,634	2,107
attributable to noncontrolling interests	-134	54
Comprehensive income	-43	3,613
of which attributable to shareholders of BASF SE	-15	3,405
attributable to noncontrolling interests	-28	209

ᵃ For more information on other comprehensive income, see Note 19 on page 372
ᵇ For more information on the remeasurements of defined benefit plans, see Note 21 from page 376 onward

BASF Report 2025

Statement of Income and Expense Recognized in Equity

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Balance Sheet

BASF Group

Assets

Million €	Explanations in Note	December 31, 2025	December 31, 2024
Intangible assets	[14]	9,692	11,983
Property, plant and equipment	[14]	25,405	27,197
Integral investments accounted for using the equity method	[10]	1,746	2,399
Non-integral investments accounted for using the equity method	[10]	3,247	3,411
Other financial assets	[10]	1,055	1,165
Deferred tax assets	[12]	544	574
Receivables for income taxes		97	88
Other receivables and miscellaneous assets	[17]	2,702	2,366
Noncurrent assets		44,489	49,183
Inventories	[16]	12,168	13,681
Accounts receivable, trade	[17]	8,325	10,393
Receivables for income taxes		696	740
Other receivables and miscellaneous assets	[17]	3,762	3,256
Marketable securities		89	67
Cash and cash equivalents	[26]	2,670	2,914
Assets of disposal groups	[3]	3,973	181
Current assets		31,684	31,232
Total assets		76,174	80,415

BASF Report 2025

Balance Sheet | 304

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Equity and liabilities

Million €	Explanations in Note	December 31, 2025	December 31, 2024
Subscribed capital	[18]	1,142	1,142
Capital reserves	[18]	3,131	3,139
Retained earnings	[18]	29,931	30,883
Other comprehensive income	[19]	-1,009	435
Equity attributable to shareholders of BASF SE		33,194	35,599
Noncontrolling interests	[13]	1,143	1,284
Equity		34,338	36,884
Provisions for pensions and similar obligations	[21]	1,832	2,403
Deferred tax liabilities	[12]	953	1,005
Income tax provisions	[12]	401	335
Other provisions	[22]	1,854	1,883
Financial indebtedness	[20]	18,481	19,122
Other liabilities	[20]	1,903	1,744
Noncurrent liabilities		25,424	26,492
Accounts payable, trade	[20]	5,484	6,923
Provisions	[22]	3,693	3,320
Liabilities for income taxes	[12]	213	404
Financial indebtedness	[20]	2,608	2,639
Other liabilities	[20]	3,405	3,714
Liabilities of disposal groups	[3]	1,008	39
Current liabilities		16,411	17,039
Total equity and liabilities		76,174	80,415

BASF Report 2025

Balance Sheet

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Statement of Cash Flows

BASF Group

Statement of cash flows

Million €	2025	2024
Net income	1,619	1,298
Depreciation and amortization of property, plant and equipment and intangible assets^{a}	4,166	4,648
Equity-accounted income	-1,055	-654
Gains (-) / losses (+) from the disposal of noncurrent assets as well as divestments^{b}	-842	-57
Other noncash items and reclassifications^{b}	-231	396
Dividends received from equity-accounted investments	1,331	442
Changes in inventories	263	222
Changes in accounts receivable, trade	530	42
Changes in accounts payable, trade	-736	96
Changes in provisions	971	204
Changes in other operating assets	-1,272	383
Changes in other operating liabilities and pension provisions	865	-76
Cash flows from operating activities	5,610	6,946
Payments made for property, plant and equipment and intangible assets	-4,267	-6,198
Payments made for financial assets and securities	-1,208	-749
Payments made for investments in equity instruments	-81	-646
Payments made for acquisitions	-1	-202
Payments received from divestitures less transferred cash and cash equivalents	871	75
Payments received from the disposal of noncurrent assets and securities	1,309	808
Payments received from the disposal of equity instruments	168	1,831
Cash flows from investing activities	-3,208	-5,081
Capital repayments and other equity transactions	-355	-46
Additions to financial and similar liabilities	6,394	6,362
Repayment of financial and similar liabilities	-6,369	-4,579
Dividends paid	-2,086	-3,284
Cash flows from financing activities	-2,416	-1,547
Cash-effective changes in cash and cash equivalents	-15	318
Changes in cash and cash equivalents from foreign exchange rates and changes in the scope of consolidation	-88	-21
Cash and cash equivalents at the beginning of the period^{c}	2,921	2,624
Cash and cash equivalents at the end of the period^{c}	2,818	2,921

a This item includes depreciation and amortization, impairments and reversals of impairments.
b The presentation of these positions has been adjusted. For more information, see note 26 from page 407 onward.
c As of December 31, 2024, and December 31, 2025, the cash and cash equivalents in the statement of cash flows differ from the value in the balance sheet due to the existence of disposal groups.

BASF Report 2025

Statement of Cash Flows

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Statement of Changes in Equity

BASF Group

Statement of changes in equity

Million €	Subscribed capital	Capital reserves	Retained earningsb	Remeasurement of defined benefit plans	Currency translation	Measurement of securities at fair value	Cash flow hedges	Other comprehensive income	Equity attributable to shareholders of BASF SEb	Noncontrolling interests	Equityb
Jan. 1, 2025	1,142	3,139	30,870	-451	1,102	-168	-48	435	35,586	1,285	36,871
Treasury shares	-	-	-355	-	-	-	-	-	-355	-	-355
Dividends	-	-	-2,008	-	-	-	-	-	-2,008	-99	-2,107
Income after taxes	-	-	1,619	-	-	-	-	-	1,619	107	1,726
Other comprehensive income after taxes	-	-	-	563	-2,409	-2	214	-1,634	-1,634	-134	-1,768
Gains and losses on cash flow hedges and hedging costs eliminated from other comprehensive income not affecting profit and loss	-	-	-	-	-	-	-5	-5	-5	-	-5
Changes in scope of consolidation and other changes	-	-8	-195	14	-	180	-	194	-9	-14	-23
Dec. 31, 2025	1,142	3,131	29,931	127	-1,306	10	160	-1,009	33,194	1,143	34,338

a For more information on the items relating to equity, see Notes 18 and 19 from page 370 onward
b With the first-time application of the amendments to IFRS 9 and IFRS 7 relating to Contracts Referencing Nature-dependent Electricity, one PPA was derecognized against the opening balance of equity. Since no adjustment was made to the prior-year figures, the opening balance as of January 1, 2025, differs from the closing balance as of December 31, 2024.

BASF Report 2025

Statement of Changes in Equity

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Statement of changes in equityᵃ

Million €	Subscribed capital	Capital reserves	Retained earnings	Remeasurement of defined benefit plans	Currency translation	Measurement of securities at fair value	Cash flow hedges	Other comprehensive income	Equity attributable to shareholders of BASF SE	Noncontrolling interests	Equity
Jan. 1, 2024	1,142	3,139	32,517	-1,739	320	-167	65	-1,521	35,277	1,368	36,646
Treasury shares	-	-	-	-	-	-	-	-	-	-	-
Dividends	-	-	-3,035	-	-	-	-	-	-3,035	-249	-3,284
Income after taxes	-	-	1,298	-	-	-	-	-	1,298	155	1,453
Other comprehensive income after taxes	-	-	-	1,477	782	-1	-151	2,107	2,107	54	2,161
Gains and losses on cash flow hedges and hedging costs eliminated from other comprehensive income not affecting profit and loss	-	-	-	-	-	-	38	38	38	-	38
Changes in scope of consolidation and other changes	-	-	103	-188	-	-	-	-188	-86	-17	-103
Changes in noncontrolling interests	-	-	-	-	-	-	-	-	-	-26	-26
Dec. 31, 2024	1,142	3,139	30,883	-451	1,102	-168	-48	435	35,599	1,285	36,884

ᵃ For more information on the items relating to equity, see Notes 18 and 19 from page 370 onward.

BASF Report 2025

Statement of Changes in Equity

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Notes

BASF Group

1 Summary of accounting policies

1.1 General information

BASF SE (registered at the district trade register, or Amtsgericht, for Ludwigshafen am Rhein, number HRB 6000) is a publicly listed corporation headquartered in Ludwigshafen am Rhein, Germany. Its official address is Carl-Bosch-Str. 38, 67056 Ludwigshafen am Rhein, Germany.

The Consolidated Financial Statements of BASF SE as of December 31, 2025, have been prepared in accordance with the IFRS® Accounting Standards (hereinafter referred to as “IFRS Accounting Standards”) of the International Accounting Standards Board (IASB®) and section 315e (1) of the German Commercial Code (HGB). IFRS Accounting Standards are generally only applied after they have been endorsed by the European Union. For the 2025 fiscal year, all of the binding IFRS Accounting Standards and pronouncements of the International Financial Reporting Interpretations Committee (IFRIC®) were applied. The Consolidated Financial Statements are for the period from January 1, 2025, to December 31, 2025, and are presented in euros. They are written in German and translated into English. All amounts, including the figures for previous years, are given in million euros unless otherwise indicated.

Due to rounding, individual figures in this report may not add up to the totals shown and percentages may not correspond exactly to the figures shown.

The individual financial statements of the consolidated companies are prepared as of the balance sheet date of the Consolidated Financial Statements. Business continuity is assumed. The accounting policies applied are largely the same as those used in 2024.

On February 23, 2026, the Board of Executive Directors prepared the Consolidated Financial Statements, submitted them to the Supervisory Board for review and approval, and released them for publication.

1.2 Changes in accounting principles

Accounting policies applied for the first time in 2025

Standard/interpretation	Name of standard/interpretation or amendments	Date of publication	Date of endorsement by the EU
Amendments to IAS® 21	The Effects of Changes in Foreign Exchange Rates (Determination of Exchange Rates in the Event of Lack of Exchangeability)	August 15, 2023	November 12, 2024
Amendments to IFRS 9 and IFRS 7	Financial Instruments / Financial Instruments: Disclosures (Contracts Referencing Nature-dependent Electricity)	December 18, 2024	June 30, 2025

BASF falls within the scope of the amendments to IFRS 9 and IFRS 7 for contracts referencing nature-dependent electricity. BASF adopted these amendments early, beginning with the Half-Year Financial Statements 2025. Upon retrospective initial application of the amended own use exemption, one power purchase agreement (PPA) was derecognized at its carrying amount at the beginning of the current fiscal year against the opening balance of equity without affecting profit and loss. In accordance with the transition requirements, the prior-year figures were not restated. The amendments to IAS 21 had no material effect on the Consolidated Financial Statements of BASF SE.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

IFRS Accounting Standards and IFRICs not yet to be considered but already endorsed by the EU

Standard/interpretation	Name of standard/interpretation or amendments	Date of publication	Date of endorsement	Mandatory date of initial application
Amendments to IFRS 9 and IFRS 7	Financial Instruments / Financial Instruments: Disclosures (Amendments to the Classification and Measurement of Financial Instruments)	May 30, 2024	May 27, 2025	January 1, 2026
Annual Improvements to IFRS Accounting Standards – Volume 11	Amendments to
– IFRS 1 First-Time Adoption of International Financial Reporting Standards (Hedge Accounting by a First-Time Adopter)
– IFRS 7 Financial Instruments: Disclosures (Gain or Loss on Derecognition) Guidance on Implementing IFRS 7
– IFRS 9 Financial Instruments (Derecognition of Lease Liabilities / Transaction Price)
– IFRS 10 Consolidated Financial Statements (Determination of a “De Facto Agent”)
– IAS 7 Statement of Cash Flows (Cost Method)	July 18, 2024	July 9, 2025	January 1, 2026
Introduction of IFRS 18	Presentation and Disclosure in Financial Statements (Replaces policies under the current IAS 1 and introduces new disclosure requirements)	April 9, 2024	February 13, 2026	January 1, 2027

The effects on the BASF Group financial statements of the IFRS Accounting Standards and IFRICs not yet in force in 2025 but already endorsed by the European Union were assessed. The amendments, with exception of the introduction of IFRS 18, are unlikely to have a material impact on the reporting of BASF. The introduction of IFRS 18 will have a significant impact on the presentation of the statement of income. Income and expenses from foreign currency transactions will be presented in the prescribed categories in accordance with the standard's requirements. In the statement of cash flows, interest and dividends received as well as interest paid will no longer be classified as cash flows from operating activities but will be reported under cash flows from investing or financing activities, respectively. Furthermore, the standard requires that management-defined performance measures (MPMs) be disclosed in the notes to the financial statements. BASF currently intends to introduce new MPMs, the precise details of which are still being reviewed. BASF does not plan on early adoption of the described amendments.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

IFRS Accounting Standards and IFRICs not yet to be considered and not yet endorsed by the EU

Standard/interpretation	Name of standard/interpretation or amendments	Date of publication
Introduction of IFRS 19	Subsidiaries without Public Accountability: Disclosures
(Reduced disclosure requirements for eligible subsidiaries)	May 9, 2024	January 1, 2027
Amendments to IFRS 19	Subsidiaries without Public Accountability: Disclosures
(Reduced disclosure requirements for eligible subsidiaries)	August 21, 2025	January 1, 2027
Amendments to IAS 21	The Effects of Changes in Foreign Exchange Rates
(Translation to a Hyperinflationary Presentation Currency)	November 13, 2025	January 1, 2027

The IASB issued further standards and amendments to standards and interpretations which are still subject to EU endorsement and whose application is not yet mandatory. The introduction of IFRS 19 and Amendments to IFRS 19 do not affect the Consolidated Financial Statements of BASF SE as BASF SE does not fall within the scope of application of this standard. The Amendments to IAS 21 are not expected to have an impact on BASF's reporting. BASF does not plan on early adoption of the described amendments.

1.3 Group accounting principles

Scope of consolidation: The scope of consolidation is based on the application of the standards IFRS 10 and 11 and IAS 28.

According to IFRS 10, a group consists of a parent entity and the subsidiaries controlled by the parent. "Control" of an investee assumes the simultaneous fulfillment of the following three criteria:

The parent company holds decision-making power over the relevant activities of the investee
The parent company has rights to variable returns from the investee
The parent company can use its decision-making power to affect the variable returns

Fulfillment of these three criteria is analyzed based on the corporate governance structure of the companies.

According to IFRS 11, which regulates the accounting of joint arrangements, a distinction must be made between joint ventures and joint operations. In the case of a joint venture, the parties that have joint control of a legally independent company have rights to the net assets of that arrangement. In joint operations, the parties that have joint control have direct rights to the assets and obligations for the liabilities relating to the arrangement. This requirement is particularly fulfilled if the production output of the joint arrangement is almost entirely transferred to the partners, through which the partners guarantee the joint arrangement's ongoing financing.

Companies whose corporate governance structures classify them as joint arrangements are analyzed to determine if they meet the criteria for joint ventures or joint operations in accordance with IFRS 11. If the joint arrangement is structured as a separate vehicle, its legal form, any other contractual arrangements and all other facts and circumstances are reviewed.

In addition to BASF SE, the Consolidated Financial Statements include all material subsidiaries on a fully consolidated and all material joint operations on a proportionally consolidated basis. Companies of minor importance for the presentation of a true and fair view of the net assets, financial position and results of operations are not consolidated, but rather are reported under other shareholdings (for more information, see Note 25.4, footnote a on page 398). The aggregate assets and equity of these companies amount to less than $1\%$ of the corresponding value at Group level.

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Joint ventures and associated companies are accounted for using the equity method in the Consolidated Financial Statements in accordance with IAS 28. Associated companies are entities that are not subsidiaries, joint ventures or joint operations, and over whose operating and financial policies significant influence can be exercised. In general, this applies to companies in which BASF has an investment of between 20% and 50%. Associated companies and joint ventures that are fully or predominantly allocated to operating divisions are classified as integral because they are integrated into the value chain of the respective division; are controlled by the divisions; and they generate their income in close cooperation with the other assets of the BASF Group and/or of these divisions. Equity-accounted income from integral joint ventures or associated companies is reported as part of income from operations (EBIT). Equity-accounted income from non-integral associated companies is reported in net income from shareholdings (for more information, see Note 10 from page 339 onward).

Consolidation methods: Assets and liabilities of consolidated companies are uniformly recognized and measured in accordance with the principles described herein. For companies accounted for using the equity method, material deviations in measurement resulting from the application of other accounting principles than those applied by BASF are adjusted.

Transactions between consolidated companies as well as intercompany profits resulting from trade between consolidated companies are eliminated in full. Sales and material other balances and transactions between joint operations and fully consolidated Group companies are also eliminated. Material intercompany profits and losses related to companies accounted for using the equity method are eliminated.

Capital consolidation is conducted on the acquisition date according to the purchase method. Initially, all assets, liabilities and additional intangible assets that are to be capitalized are measured at fair value regardless of the scope of any noncontrolling interests. Subsequently, the cost of acquiring the company is compared with the proportional share of the fair value of the net assets acquired. The resulting positive differences are capitalized as goodwill. Negative differences are reviewed once more, then recognized directly in the income statement.

Noncontrolling interests are measured at fair value on the date of acquisition proportional to the assets acquired and liabilities assumed (partial goodwill method).

The acquisition of shares in companies already controlled by BASF or included in the Consolidated Financial Statements as a joint arrangement is treated as a transaction between shareholders if it does not result in a change in the consolidation method.

The incidental acquisition costs of a business combination are recognized in the income statement under other operating expenses.

Foreign currency translation: The cost of assets acquired in foreign currencies and revenue from sales in foreign currencies are determined by the exchange rate on the date the transaction is recognized. Foreign currency receivables and liabilities are valued at the exchange rates on the balance sheet date. Changes in assets and liabilities arising from foreign currency translation are either recognized in the income statement under other operating income or expenses or in other financial result, and those related to financial assets measured at fair value through other comprehensive income are shown in other comprehensive income.

Translation of foreign currency financial statements: The translation of foreign currency financial statements depends on the functional currency of the consolidated companies. For companies whose functional currency is not the euro, translation into the reporting currency is based on the closing rate method: Balance sheet items are translated into euros using closing rates on the balance sheet date; expenses and income are translated into euros at monthly average rates and accumulated for the year. The difference between a company's equity translated at historical rates at the time of acquisition or

BASF Report 2025
Notes | 312

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

retention and its equity translated at closing rates on the balance sheet date is reported under other comprehensive income (translation adjustments) and is recognized in the income statement only upon the disposal of the company or a foreign business.

For certain companies outside the eurozone or U.S. dollar zone, the euro or U.S. dollar is the functional currency; this includes, among others, BASF Tuerk Kimya Sanayi ve Ticaret Ltd. Sti., Istanbul, Türkiye, and BASF Argentina S.A., Buenos Aires, Argentina. In such cases, financial statements prepared in the local currency are translated into the functional currency using the temporal method: All nonmonetary assets and related depreciation and amortization as well as equity are translated at the exchange rate applying to the respective transactions. All other balance sheet items are translated using closing rates on the balance sheet date; other expenses and income are translated at monthly average rates. The resulting translation differences are recognized in the income statement under other operating income or expenses. If necessary, financial statements in the functional currency are translated into the presentation currency according to the closing rate method.

Selected exchange rates

EUR 1 equals	Closing rates		Average rates
	Dec. 31, 2025	Dec. 31, 2024	2025	2024
Brazil (BRL)	6.44	6.43	6.31	5.83
China (CNY)	8.23	7.58	8.12	7.79
Japan (JPY)	184.09	163.06	169.04	163.85
Malaysia (MYR)	4.77	4.65	4.83	4.95
Mexico (MXN)	21.12	21.55	21.67	19.83
Switzerland (CHF)	0.93	0.94	0.94	0.95
South Korea (KRW)	1,696.94	1,532.15	1,605.45	1,475.40
United States (USD)	1.18	1.04	1.13	1.08
United Kingdom (GBP)	0.87	0.83	0.86	0.85

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

1.4 Accounting policies

The accounting policies for the individual items in the balance sheet and the income statement are presented in the respective sections of the Notes.

Business combinations: In business combinations, the acquired assets and liabilities are recognized at fair value on the date the acquirer effectively obtains control. The fair value of acquired assets and assumed liabilities at the date of acquisition, as well as the useful lives of the acquired assets, are largely based on projected cash flows. Actual cash flows can deviate significantly from those. Independent external appraisals are typically used for the purchase price allocation of material business combinations. Valuations in the course of business combinations are based on existing information as of the acquisition date.

Groups of assets and liabilities held for sale (disposal groups): These comprise those assets and directly associated liabilities shown separately on the balance sheet whose sale in the context of a single transaction is highly probable. A transaction is assumed to be highly probable if there are no significant risks to the completion of the transaction, which usually requires the conclusion of binding agreements. Assets and liabilities classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell; this does not apply to assets that do not fall under the valuation principles of IFRS 5. Scheduled depreciation and amortization of noncurrent assets and the use of the equity method are suspended.

Discontinued operations: These are classified as held for sale and are presented as discontinued operations in BASF's Consolidated Financial Statements in accordance with IFRS 5. Until closing of the transaction, the income after taxes of discontinued operations is shown in income after taxes of the BASF Group as a separate item (income after taxes from discontinued operations). The BASF Group's sales and earnings are retroactively adjusted for the consolidated contributions from discontinued operations as of the beginning of the business year. The prior-year figures are restated. In addition, the assets and liabilities of the discontinued operations are reclassified to a disposal group (assets or liabilities of disposal groups). Depreciation and amortization of noncurrent assets and the use of the equity method are suspended as of the date when the disposal group is initially presented. The statement of cash flows is not adjusted. The activities of discontinued operations are not allocated to any reportable segment in financial reporting. The assets and liabilities of the discontinued business are reported under Other.

BASF Report 2025

Notes

Use of estimates and assumptions in preparing the Consolidated Financial Statements

The carrying amount of assets, liabilities and provisions, contingent liabilities and other financial obligations reported in the Consolidated Financial Statements depends on the use of estimates, assumptions and discretionary scope. Specific estimates or assumptions used in individual accounting or valuation methods are disclosed in their respective sections of the Notes to the Consolidated Financial Statements. They are based on the circumstances and estimates on the balance sheet date and thus affect the amounts of income and expenses shown for the reporting periods presented. These assumptions primarily relate to the determination of discounted cash flows in the context of impairment tests and purchase price allocations; the useful lives of depreciable property, plant and equipment and intangible assets; the carrying amount of shareholdings; and the measurement of provisions for items such as employee benefits, warranties, trade discounts, environmental protection or the extent of recognition of assets, liabilities and provisions for taxes. Although uncertainty is appropriately incorporated in the valuation factors, actual results can differ from these estimates. Uncertainties persist in connection with the current geopolitical and economic situation, which could impact the Consolidated Financial Statements. A potential escalation of international conflicts could disrupt global supply chains and lead to further restrictions in the availability of energy, raw materials or intermediate products. The ongoing war in Ukraine and the tense situation in the Middle East pose significant risks to market development and raw material supplies. Furthermore, the continuation of higher U.S. tariffs and potential retaliatory measures by other trading partners make it difficult to reliably assess the impact on sales volumes, price trends and the competitive landscape. These uncertainties were reflected in the estimates and assumptions used. Current inflation developments were taken into account both in the measurement of pension provisions and other provisions as well as in the fixed asset impairment tests.

Climate and sustainability-related developments: The chemical industry is resource-intensive. BASF is committed to the Paris Climate Agreement. Using resources as efficiently and responsibly as possible and the concept of a circular economy are firmly embedded in BASF's strategy and its actions. BASF aims to reduce CO_{2} emissions and increase the use of renewable and recycled raw materials. In this context, BASF always strives to use raw materials more efficiently and improve production processes as well as to continually seek ways to use nonfossil, renewable or recycled feedstocks. Despite the current global political situation, the path to climate neutrality is resolutely being pursued (for more information on electricity supply contracts, see Note 25 from page 389 onward).

BASF is exposed to physical and transition climate-related risks. Physical climate risks are the direct consequences of extreme weather scenarios in the form of floods, droughts, hurricanes, extreme rainfall or heat. These can cause damage to assets, interrupt deliveries to customers or have adverse effects on the supply of raw materials and precursors to plants. BASF responds to risks related to weather scenarios by adapting operational processes, for example in the area of logistics, by investing in assets and infrastructure or by maintaining broad insurance coverage.

Transition risks are risks that arise from the transition to a low-emission economy. These can arise from developments aimed at preventing or reversing damage to the climate or to nature. As an energy-intensive company, BASF expects, among other things, rising energy and CO_{2} prices as part of the structural transition.

The transition also creates opportunities, for example, through increasing demand for products based on renewable raw materials, insulation foams for buildings, coolants and battery materials as well as better circular economy and climate protection solutions. The market-oriented approach anchored in the strategy is intended to enable BASF to leverage these opportunities and support the green transformation of various customer industries in a differentiated manner by prioritizing investments and projects with a sustainability focus according to customer demand and willingness to pay.

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

At the end of December 2025, BASF began commissioning the steam cracker at its new Verbund site in Zhanjiang, China. The Zhanjiang Verbund site is strategically positioned to produce high-quality chemical products with a lower carbon footprint, thereby participating in the growth of the largest chemicals market in the world. The site's electricity supply comes $100\%$ from renewable sources via long-term supply agreements.

Climate-related risks are taken into account in estimates and discretionary decisions when preparing the Consolidated Financial Statements. Physical and transition risks are assessed on an ongoing basis and can, for example, have an impact on useful lives and residual carrying amounts of fixed assets, the valuation of provisions for environmental or restoration obligations, the valuation of inventories or growth rates in goodwill impairment tests.

The transition to electromobility will have a negative long-term impact on the emissions catalyst business. This development is reflected in a negative long-term growth rate in the goodwill impairment test of the Environmental Catalyst and Metal Solutions (ECMS) cash-generating unit. Other BASF businesses will benefit from this transformation, in particular as a result of growing demand for lightweight components and battery materials. In the short term, however, lower demand is expected in the battery materials market, which was taken into account accordingly in the impairment test for the goodwill of the cash-generating unit Battery Materials.

2 Scope of consolidation

Scope of consolidation

Number of companies	Europe	of which Germany	North America	Asia Pacific	South America, Africa, Middle East	2025	2024
As of January 1	148	50	35	72	22	277	269
of which proportionally consolidated	7	-	-	2	-	9	9
First-time consolidationsa	3	2	4	9	1	17	13
of which proportionally consolidated	-	-	-	-	-	-	-
Deconsolidationsb	8	6	-	2	2	12	5
of which proportionally consolidated	1	-	-	-	-	1	-
As of December 31	143	46	39	79	21	282	277
of which proportionally consolidated	6	-	-	2	-	8	9

a Acquisitions, newly established companies, or reclassification due to increased importance
b Divestitures, mergers, liquidations, or downgrades due to decreased importance

In 2025, a total of 17 companies were newly included in the scope of consolidation. Fourteen companies were fully consolidated for the first time due to their increased importance. Of these, two were located in Germany, three in North America, one in South America, Africa, Middle East and eight in Asia Pacific. One company was newly established in North America. One company established in Asia Pacific in 2025 was initially reported under other shareholdings and valued at cost before being included in the Consolidated Financial Statements for the first time due to its increased importance. Furthermore, in the Europe region, BASF acquired DOMO Chemicals' $49\%$ stake in the joint operation Alsachimie S.A.S., Chalampé, France, and is now the sole owner of the company. Since July 2025, Alsachimie has been fully consolidated in the Consolidated Financial Statements. Until then, Alsachimie was proportionally consolidated (for more information, see Note 3 from page 318 onward).

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Four companies based in Germany and one company in the region South America, Africa, Middle East were merged with other companies. One company in each of the regions Europe (Germany), Asia Pacific, and South America, Africa, Middle East was divested. One company based in Asia Pacific was liquidated and two companies in Europe (one of which was in Germany) were no longer included in the Consolidated Financial Statements due to their diminished significance.

In the previous year, eight companies were included in the scope of consolidation for the first time due to their increased importance and one newly founded company was added. Of these companies, eight were in Europe (including two in Germany) and one in South America, Africa, Middle East. In addition, four acquired companies based in Germany were newly included in the scope of consolidation, and an additional German company was included for the first time using the equity method. Four companies – two with headquarters in Europe and one each with headquarters in North America and in Asia Pacific – were liquidated. A further company based in South America, Africa, Middle East was merged.

Overview of impact of changes in the scope of consolidation (excluding acquisitions and divestitures)

	2025		2024
	Million €	%a	Million €	%a
Sales	0	0.0	-	-
Noncurrent assets	17	0.0	-2	0.0
of which property, plant and equipment	34	0.1	-	-
Current assets	-34	0.1	0	0.0
of which cash and cash equivalents	0	0.0	2	0.1
Assets	-17	0.0	-2	0.0
Equity	9	0.0	1	0.0
Noncurrent liabilities	-8	0.1	-	-
of which financial indebtedness	-	-	-	-
Current liabilities	16	0.0	-3	0.0
of which financial indebtedness	-	-	-	-
Total equity and liabilities	17	0.0	-2	0.0
Other financial obligations	-	-	-	-

a Proportional share in relation to the BASF Group

The joint operations proportionally consolidated as of December 31, 2025, include, in particular:

Ellba C.V., Rotterdam, Netherlands, which is jointly operated with Shell for the production of propylene oxide and styrene monomer
BASF DOW HPPO Production BVBA, Antwerp, Belgium, which is jointly operated with Dow for the production of propylene oxide
Butachimie SNC, Chalampé, France, which is jointly operated with Invista for the production of adiponitrile (ADN) and hexamethylenediamine (HMD)

Furthermore, Alsachimie S.A.S. had been proportionally consolidated throughout the prior year and until the assumption of full control on July 1, 2025, as described above.

In addition to the fully and proportionally consolidated companies, 22 joint ventures and/or associated companies (previous year: 24) were consolidated using the equity method as of December 31, 2025.

A list of the companies included in the Consolidated Financial Statements and of all companies in which BASF SE has a shareholding as required by section 313(2) of the German Commercial Code (HGB) is provided in the list of shares held (for more information, see Note 4 from page 325 onward).

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

3 Acquisitions and divestitures

Acquisitions

In 2025, BASF acquired the following activity:

On July 1, 2025, BASF completed its purchase of the 49% stake held by DOMO Chemicals GmbH, Leuna, Germany, in the Alsachimie S.A.S. joint operation, Chalampé, France, thereby acquiring sole ownership of the production entity for essential polyamide 6.6 precursors, including adipic acid and hexamethylenediamine adipate (AH salt). The transaction enables BASF to optimize backward integration of key raw materials, ensuring supply reliability and efficiency across the polyamide 6.6 value chain and the provision of site services. The company, which had previously been proportionally consolidated, has been fully consolidated since July 1, 2025. The fair value of the equity interest held by BASF immediately before the acquisition date was €52 million. The revaluation required upon transfer of control resulted in a gain in the amount of €10 million, which was recognized in other operating income. The acquired businesses accounted for €2 million in sales and €7 million in income from operations in the 2025 business year. Fully consolidating the businesses and assets of Alsachimie in BASF's Consolidated Financial Statements as of January 1, 2025, would have resulted in a sales revenue contribution of €4 million and income from operations of €15 million. These pro forma data are for comparison purposes. These values would not necessarily have resulted had the transaction taken place as of January 1, 2025, and are not suitable for forecasting future developments or events. The gross amounts of contractual trade accounts receivable were €6 million.

In 2024, BASF acquired the following activity:

On July 31, 2023, BASF and Huntsman, together with their Chinese partner companies, announced the separation of their joint MDI production in the associated company Shanghai Lianheng Isocyanate Co., Ltd. BASF took over one of the two MDI plants, including production plants for the precursors aniline and nitrobenzene as well as the employees in production. The transaction fell within the scope of IFRS 3 and was completed on January 31, 2024. The purchase price was €192 million and was cash-effective in full. It was attributable to the acquired plants and, to a lesser extent, to inventories.

The following overview shows the effects of the acquisitions in 2025 and 2024 on the Consolidated Financial Statements. When acquisitions resulted in the transfer of assets or the assumption of additional liabilities, the effects are shown as net amounts.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Effects of acquisitions

	2025		2024
	Million €	%a	Million €	%a
Goodwill	–	–	0	0.0
Other intangible assets	0	0.0	1	0.0
Property, plant and equipment	-13	0.0	188	0.7
Financial assets	–	–	–	–
Other noncurrent assets	4	0.0	–	–
Noncurrent assets	-9	0.0	188	0.4
Current assets	63	0.2	16	0.1
of which cash and cash equivalents	–	–	–	–
Assets	55	0.1	205	0.3
Equity	13	0.0	–	–
of which noncontrolling interests	–	–	–	–
Noncurrent liabilities	22	0.1	–	–
of which financial indebtedness	3	0.0	–	–
Current liabilities	19	0.1	3	0.0
of which financial indebtedness	2	0.1	–	–
Total equity and liabilities	54	0.1	3	0.0
Payments made for acquisitions	1		202
Additions of cash and cash equivalents	–		–
Payments made for acquisitions according to statement of cash flows	1		202

a Proportional share in relation to the BASF Group

Divestitures

In 2025, BASF sold the following activities:

Effective April 21, 2025, and following the approval of the relevant authorities, BASF completed the sale of its shares in BASF Markov Chemical Manufacturing (Xinjiang) Co., Ltd. and Markov Meiou Chemical (Xinjiang) Co., Ltd. in Korla, China. The companies operate production plants for butanediol and PolyTHF, which were allocated to the Chemicals segment. The disposed assets and liabilities had been reclassified to a disposal group in the previous business year. The calculation of the disposal gain, which is reported under other operating income, is presented in the following table:

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Calculation of the disposal gain from the divestment of shares in BASF Markov Chemical Manufacturing (Xinjiang) Co., Ltd. and Markov Meiou Chemical (Xinjiang) Co., Ltd.

Million €	April 21, 2025
Selling price	30
Disposed net assets	-42
Assets of the disposal group	-53
Reinstated receivables	5
Liabilities of the disposal group	17
Reinstated liabilities	-11
Noncontrolling interests	13
Recycling of income and expenses previously recognized directly in equity	4
Other	0
Disposal gain before taxes	5
Tax expense	-
Disposal gain after taxes	5

Effective September 30, 2025, and following the approval of the relevant authorities, BASF completed the sale of its food and health performance ingredients business to Louis Dreyfus Company (LDC), Rotterdam, Netherlands. The business was previously part of BASF's Nutrition & Health division. The transaction included the production site in Illertissen, Germany, three application laboratories outside Germany, and approximately 300 employees who transferred to LDC as part of the transaction. The disposed assets and liabilities had been reclassified to a disposal group in the previous business year. The calculation of the disposal gain, which is reported under other operating income, is presented in the following table:

Calculation of the disposal gain from the divestment of the food and health performance ingredients business

Million €	September 30, 2025
Selling price	162
Disposed net assets	-96
Assets of the disposal group	-120
Liabilities of the disposal group	26
Reinstated liabilities	-2
Other	-6
Disposal gain before taxes	59
Tax expense	0
Disposal gain after taxes	59

With effect from October 1, 2025, and following the approval of the relevant competition authority, BASF completed the sale of its Brazilian decorative paints business to Sherwin-Williams, Cleveland, Ohio. The business had previously been part of BASF's Coatings division. The purchase price on a cash and debt-free basis was $1.15 billion. The transaction was structured as a share deal and included the production sites in Demarchi and Jaboatão, the associated contracts, the Suvinil and Glasu! brands and the transfer of around 1,000 employees. Upon agreement on the sale, the affected assets and liabilities were reclassified to a disposal group as of March 31, 2025. With the sale of the business, which operates almost exclusively in Brazil, the disposal group was derecognized. The calculation of the disposal gain, which is reported under other operating income, is presented in the following table:

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Calculation of the disposal gain from the divestment of the Brazilian decorative paints business

Million €	October 1, 2025
Selling price	981
Disposed net assets	-275
Assets of the disposal group	-409
Reinstated receivables	29
Liabilities of the disposal group	106
Reinstated liabilities	-2
Recycling of income and expenses previously recognized directly in equity	-57
Other	16
Disposal gain before taxes	664
Tax expense	-264
Disposal gain after taxes	400

In 2024, BASF sold the following activity:

On September 3, 2024, BASF completed the sale of the exploration and production business (E&P business) of the Wintershall Dea AG oil and gas company (Wintershall Dea GmbH as of September 23, 2024), Kassel, Germany, to Harbour Energy plc, London, United Kingdom. The E&P business included assets used in production and development, exploration rights and Wintershall Dea's carbon storage licenses. In exchange, Wintershall Dea shareholders – BASF (72.7%) and LetterOne (27.3%) – received a cash consideration totaling $1.78 billion (BASF share: $1.29 billion), including a purchase price adjustment, and new shares issued by Harbour Energy equating to a total shareholding of 54.5% in the expanded Harbour Energy company (BASF share: 39.59%). The non-integral investment in Harbour Energy, accounted for using the equity method, was initially recognized at the closing price of the shares on September 3, 2024, plus directly attributable incidental acquisition costs. Wintershall Dea's headquarters, which are slated to be closed, its employees at headquarters as well as the Russia-related business, for which significant German federal guarantees exist, were not part of the transaction. The shares in Wintershall Dea continued to be accounted for using the equity method. Income from the sale of the E&P business to Harbour Energy was reported in income from non-integral companies accounted for using the equity method.

The following overview shows the effects of the divestitures in 2025 and 2024 on the Consolidated Financial Statements. The sales line item shows the decline resulting from divestitures as compared to the adjusted prior-year values. The impact on equity related mainly to gains and losses from divestitures.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Effects of divestitures

	2025		2024
	Million €	%a	Million €	%a
Sales	-349	-0.6	-86	-0.1
Noncurrent assets	-154	-0.3	-683	-1.4
of which property, plant and equipment	-63	-0.2	-12	-0.0
Current assets	-383	-1.2	-25	-0.1
of which cash and cash equivalents	-46	-1.6	-	-
Assets	-538	-0.7	-708	-0.9
Equity	736	2.1	496	1.3
Noncurrent liabilities	0	0.0	-2	-0.0
of which financial indebtedness	-	-	-	-
Current liabilities	-116	-0.7	41	0.2
of which financial indebtedness	-	-	-	-
Total equity and liabilities	620	0.8	536	0.7
Payments received from divestitures	1,154		1,244
Further effects in connection with divestituresb	-283		-1,169
Payments received from divestitures according to statement of cash flows	871		75

a Proportional share in relation to the BASF Group
b Includes project-related tax payments and derecognition of cash and cash equivalents. The sale of Wintershall Dea's E&P business to Harbour Energy in 2024 is not reported under divestitures in the statement of cash flows, but as a disposal of equity instruments.

Agreed transactions

BASF and Carlyle, Washington D.C., announced on October 10, 2025, the signing of an agreement for the sale of BASF's automotive OEM coatings, automotive refinish coatings and surface treatment business units ("coatings"). The enterprise value of the transaction amounts to €7.7 billion. The transaction is structured as a share deal. Subject to approval from the relevant regulatory bodies, the transaction is expected to close in the second quarter of 2026. Upon closing, BASF will receive pre-tax cash proceeds of approximately €5.8 billion as well as a 40% equity stake in the new coatings entity, which it will report as a financial investment accounted for using the equity method. Owing to the planned divestment, the affected business units have been reported as discontinued operations in accordance with IFRS 5 as of September 30, 2025. Accordingly, the results of the discontinued operations for the reporting period and the prior-year period are presented separately in BASF Group's statement of income. Impairments, mainly on shareholdings, in the amount of €21 million were recognized in the period up to December 31, 2025.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Earnings from the discontinued coatings business are presented in the following table:

Statement of income from the discontinued coatings business

Million €	2025	2024
Sales	3,746	3,816
Cost of sales	-1,914	-1,949
Gross profit on sales	1,832	1,867
Selling expenses	-1,164	-1,179
General administrative expenses	-132	-133
Research and development expenses	-86	-92
Other operating income and expenses	-176	-240
EBIT	274	223
Net income from shareholdings	-18	-4
Financial result	-12	-11
Income before income taxes	244	208
Income taxes	-59	-43
Income after income taxes	185	165
of which attributable to noncontrolling interests	21	21
Income after noncontrolling interests	164	144
Earnings per share from discontinued operations (€)	0.18	0.16

Of the other comprehensive income after taxes attributable to shareholders of BASF SE in the amount of -€1,634 million (previous year: €2,107 million), -€162 million (previous year: €98 million) was attributable to the discontinued coatings business.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The carrying amounts of the balance sheet items of the discontinued operations are presented in the following table.

Disposal group coatings business

Million €	December 31, 2025
Balance sheet
Goodwill	-577
Other intangible assets	-492
Property, plant and equipment	-1,042
Integral investments accounted for using the equity method	-
Non-integral investments accounted for using the equity method	-
Other financial assets	-38
Deferred tax assets	5
Receivables for income taxes	-1
Other receivables and miscellaneous assets	-204
Noncurrent assets	-2,349
Inventories	-535
Accounts receivable, trade	-764
Receivables for income taxes	-36
Other receivables and miscellaneous assets	-141
Marketable securities	-
Cash and cash equivalents	-148
Current assets	-1,624
Assets of the disposal group	3,973
Provisions for pensions and similar obligations	-203
Deferred tax liabilities	-44
Income tax provisions	-1
Other provisions	-33
Financial indebtedness	-
Other liabilities	-41
Noncurrent liabilities	-322
Accounts payable, trade	-305
Provisions	-192
Liabilities for income taxes	-57
Financial indebtedness	-5
Other liabilities	-130
Current liabilities	-689
Liabilities of the disposal group	1,011
Net assets	2,962

Items of other comprehensive income as of December 31, 2025, included an amount of -€300 million (previous year: -€138 million) for the disposal group coatings business. Of this, -€274 million (previous year: -€75 million) resulted from currency translations and -€26 million (previous year: -€62 million) from remeasurement of defined benefit plans.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The discontinued coatings business contributed the following amounts to BASF's statement of cash flows:

Cash flows from the discontinued coatings business

Million €	2025	2024
Cash flows from operating activities	356	399
Cash flows from investing activities	-159	-175
Cash flows from financing activities	-45	-25
Total	152	199

BASF and Catexel GmbH, Wiesbaden, announced on December 16, 2025, the signing of an agreement for the sale of BASF's business with optical brightening agents, an ingredient in detergent formulations. The business is currently part of the Care Chemicals division within the Nutrition & Care segment. The transaction involves the international business, including optical brightener production at Monthey, Switzerland, approximately 80 employees and a non-integral investment accounted for using the equity method. The transaction is expected to close in the first quarter of 2026.

4 BASF Group list of shares held pursuant to section 313(2) of the German Commercial Code (HGB)

The list of consolidated companies and the complete list of all companies in which BASF SE holds shares as required by section 313(2) HGB as well as information on the exemption of subsidiaries from accounting and disclosure obligations are an integral component of the audited Consolidated Financial Statements submitted to the German Company Register. The list of shares held is also published online.

> For more information, see basf.com/en/corporategovernance

BASF Report 2025

Notes

5 Reporting by segment and region

Accounting policies

The divisions are allocated to the segments based on their business models and according to their focal points, customer groups, the focus of their innovations, their investment relevance and sustainability aspects. Activities that are not allocated to any of the divisions are recorded under Other.

In general, the same accounting rules are used for segment reporting as those used for the Group, which are presented in these Notes. Transfers between the segments are executed at adjusted market-based prices, taking into account the higher cost efficiency and lower risk of intragroup transactions. Assets, as well as their depreciation and amortization, are allocated to the segments based on economic control. Assets used by more than one segment are allocated according to the percentage of usage.

The most important financial key performance indicators used for steering the BASF Group are income from operations before depreciation, amortization and special items (EBITDA before special items) and free cash flow. Accordingly, all segments are also measured by their absolute contribution to EBITDA before special items. To manage cash flow at segment level, a specific indicator, segment cash flow, is used. It includes the elements of free cash flow that can be managed by the operating divisions (for more information on the steering model, see the Combined Management's Report from page 29 onward).

EBITDA before special items is determined based on income from operations (EBIT), which is calculated from gross profit on sales, selling expenses, general administrative expenses, research and development expenses, other operating income and expenses, and income from integral companies accounted for using the equity method. EBIT is adjusted for special items that arise from the integration of acquired businesses, from restructuring measures, gains or losses on divestitures and sales of investments, as well as other expenses and income that may arise outside of ordinary business activities. To determine EBITDA before special items, depreciation, amortization, impairments and reversals of impairments on property, plant and equipment and intangible assets are added to EBIT before special items, provided they do not represent special items.

EBIT and EBIT before special items as well as EBITDA before special items are alternative performance measures that are not defined under IFRS and are to be considered complementary to the indicators defined by IFRS.

Explanation of segments

The composition of the Surface Technologies segment underwent several changes during the 2025 business year. Effective January 1, 2025, the former Catalysts division was split into two independent divisions: Environmental Catalyst and Metal Solutions (ECMS) and Battery Materials. At the same time, the Catalysts business with chemical and refining catalysts was allocated to the Performance Chemicals operating division within the Industrial Solutions segment. As of the beginning of the 2025 business year, the Surface Technologies segment therefore comprised the ECMS, Battery Materials and Coatings divisions. The prior-year figures were adjusted accordingly.

Furthermore, the Coatings division was affected by two significant portfolio measures in 2025, which will lead to its complete divestiture: First, the sale of the Brazilian decorative paints business to Sherwin-Williams, Cleveland, Ohio, was completed on October 1, 2025. Then, on October 10, 2025, an agreement was announced for the sale of the automotive OEM coatings, automotive refinish coatings and surface treatment businesses to Carlyle, Washington, D.C. This transaction is expected to close in the second quarter of 2026. In accordance with IFRS 5, these activities were allocated to the coatings business disposal group and are reported as discontinued operations as of September 30, 2025. Consequently, the sales and results of the disposal group are no longer reported as part of the sales and EBIT(DA) of the BASF Group and the Surface Technologies segment retroactively as of January 1, 2025. The prior-

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

year figures were adjusted accordingly. Until the completion of the transaction with Carlyle, the coatings business disposal group's income after taxes is presented as a separate item (income after taxes from discontinued operations) in BASF Group's income after taxes. The 2024 figures were adjusted accordingly. The assets and liabilities of the coatings disposal group are allocated to Other in the segment reporting to ensure a consistent definition of the Surface Technologies segment for balance sheet and income statement figures. Due to this retroactive adjustment, the contributions of the Coatings division to the Surface Technologies segment in 2024 and 2025 include only the decorative paints business.

As of December 31, 2025, the BASF Group's business comprised 11 divisions, structured in six segments:

Chemicals: Petrochemicals, Intermediates
Materials: Performance Materials, Monomers
Industrial Solutions: Dispersions & Resins, Performance Chemicals
Nutrition & Care: Care Chemicals, Nutrition & Health
Surface Technologies: ECMS, Battery Materials
Agricultural Solutions: Agricultural Solutions

The Chemicals segment comprises the Petrochemicals and Intermediates divisions and is the cornerstone of BASF's Verbund structure. The segment mainly serves customers in downstream industries, especially in the chemical and plastics industries. In addition, the Chemicals segment supplies the other segments with basic chemicals and intermediates, thereby contributing to the organic growth of BASF Group's key value chains. The segment's competitiveness is strengthened by process and product innovations as well as the development of sustainable technologies.

The Materials segment is composed of the Performance Materials and the Monomers divisions. The segment offers high-performance plastics and their precursors for new applications and systems. Its product portfolio includes isocyanates and polyamides as well as inorganic basic products and specialties for the plastics and plastics processing industries. In addition to specific technological knowledge, industry expertise and customer proximity, BASF's products that contribute to the circular economy as well as sustainable production methods especially help to differentiate the company from its competitors in this segment.

The Industrial Solutions segment consists of the Dispersions & Resins and the Performance Chemicals divisions. They develop and market ingredients and additives for industrial applications, such as polymer dispersions, resins, chemical and refining catalysts, additives, electronic materials and antioxidants. Its customers are located in various key industries, such as the automotive, plastics and electronics industries. The focus of research and development is on increasing efficiency in the use of resources and in production structures, as well as on developing more sustainable products and production processes.

The Nutrition & Care segment comprises the Care Chemicals division and the Nutrition & Health division. This segment produces ingredients for consumer goods in the areas of nutrition and home and personal care. Its customers include food and feed producers as well as the pharmaceutical, cosmetics and detergent and cleaner industries. The increasing demand for more sustainable consumer goods is a key growth driver in the segment.

As a result of the changes described above, the Surface Technologies segment consists of the ECMS and Battery Materials divisions as of the end of 2025. Its product portfolio serves the automotive and chemical industries and includes emissions catalysts, battery materials, and precious and base metal services. An innovative technology portfolio and tailor-made solutions for customers are the basis for the success of this segment.

BASF Report 2025
Notes | 327

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The Agricultural Solutions segment consists of the division of the same name. Its product portfolio is designed for different crop systems, combining seeds and traits, seed treatment products, and biological and chemical crop protection products. Agricultural Solutions offers farmers innovative and sustainable solutions supported by digital tools.

The following activities and transactions are presented under Other:

Cross-divisional corporate research working on long-term topics of strategic importance to the BASF Group
The BASF Group's steering by corporate headquarters and centrally managed strategic projects
Other businesses which include commodity trading, engineering and other services, rental income and leases, as well as renewable energy trading
Certain activities remaining after divestitures as well as remanent fixed costs and one-time expenses resulting from organizational changes or restructuring that are not allocated to the operating divisions
Assets and liabilities of discontinued operations, as well as any expenses and income arising in connection with the divestiture
Foreign currency results not allocated to the segments and measurement effects from the hedging of raw materials price and foreign currency exchange risks as well as gains and losses from the long-term incentive programs (LTI programs)
Idle capacity costs from internal human resource platforms as well as consolidation effects that cannot be allocated to a division

EBITDA before special items of Other

Million €	2025	2024
Costs for cross-divisional corporate research	-168	-183
Costs of corporate headquarters	-241	-232
Other businesses	176	182
Miscellaneous income and expenses	-372	-334
EBITDA before special items of Other	-604	-567

EBITDA before special items of Other decreased compared with the previous year. This resulted mainly from higher expenses arising from the LTI program as well as lower earnings contributions from Other businesses. EBITDA in Other included special items amounting to -€1,128 million in 2025. This included special charges in the amount of €595 million relating to restructuring projects. Further expenses of €328 million were recorded in connection with the sale of BASF's equity shares in the Nordlicht 1 and 2 wind farm projects.

BASF Report 2025
Notes | 328

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Reconciliation of the assets of the segments and of Other to the assets of the BASF Group

Million €	Dec. 31, 2025	Dec. 31, 2024
Segment assets	57,875	60,768
Assets of businesses included in Other	2,160	3,070
Other financial assets and non-integral investments accounted for using the equity method	4,303	4,576
Deferred tax assets	544	574
Cash and cash equivalents / marketable securities	2,760	2,981
Defined benefit assets	1,824	1,383
Other receivables / prepaid expenses	2,736	3,024
Assets of the coatings disposal group	3,973	4,039
Assets of Other	18,299	19,647
Assets of the BASF Group	76,174	80,415

Reconciliation of segment income to income before income taxes

Million €	2025	2024
EBITDA before special items of the segments	7,158	7,807
EBITDA before special items of Other	-604	-567
EBITDA before special items	6,554	7,240
Special items excluding depreciation and amortization of the segments	192	-429
Special items excluding depreciation and amortization of Other	-1,128	-601
Special items excluding depreciation and amortization	-936	-1,030
Depreciation and amortization of the segments^{a}	3,825	4,240
Depreciation and amortization of Other^{a}	159	160
Depreciation and amortization^{a}	3,984	4,400
EBIT of the segments	3,525	3,138
EBIT of Other	-1,891	-1,328
EBIT	1,634	1,810
Net income from shareholdings	1,313	602
Financial result	-500	-552
Income before income taxes	2,447	1,861

a Depreciation and amortization of property, plant and equipment and intangible assets (including impairments and reversals of impairments), excluding depreciation and amortization or impairments relating to the discontinued coatings business; prior-year figures have been adjusted

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Segments 2025

Million €	Chemicals	Materials	Industrial Solutions^{a}	Nutrition & Care	Surface Technologies^{a,b}	Agricultural Solutions	Other^{b}	BASF Group
Sales	10,055	12,742	8,594	6,509	8,967	9,587	3,202	59,657
Intersegment transfers	3,432	778	468	452	43	63	75	5,311
Sales including transfers	13,488	13,520	9,063	6,961	9,010	9,650	3,277	64,968
Material consumption	4,971	6,440	4,081	2,923	7,404	2,860	2,705	31,384
Income from integral companies accounted for using the equity method	-2	13	14	5	34	-	-315	-251
Income from operations before depreciation and amortization (EBITDA)	747	1,502	1,153	630	1,394	1,925	-1,732	5,618
EBITDA before special items	853	1,575	1,200	649	800	2,081	-604	6,554
Income from operations (EBIT)	-374	635	705	76	1,141	1,342	-1,891	1,634
Special Items in EBIT	-286	-87	-81	-57	555	-158	-1,139	-1,253
of which impairments and reversals of impairments	-180	-14	-33	-38	-39	-2	-11	-318
Assets	14,400	9,226	6,560	7,610	5,836	14,243	18,299	76,174
of which goodwill	193	180	1,122	823	1,053	3,114	68	6,553
other intangible assets	62	180	68	128	145	2,528	28	3,140
property, plant and equipment	10,304	5,082	2,287	3,623	1,239	1,911	958	25,405
integral investments accounted for using the equity method	749	82	16	34	447	-	419	1,746
Liabilities	2,466	2,566	1,773	1,975	1,305	3,520	28,230	41,836
Research and development expenses	87	184	187	137	155	990	254	1,995
Additions to property, plant and equipment and intangible assets (including acquisitions)^{b}	2,108	940	391	662	116	351	219	4,787
Depreciation and amortization of property, plant and equipment and intangible assets^{b}	1,120	867	448	554	253	583	337	4,163
of which impairments	204	48	42	59	37	9	30	429
reversals of impairments	3	3	1	2	0	0	0	9

a Since January 1, 2025, the business with chemical and refinery catalysts has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the Surface Technologies segment.
b Other also includes assets and liabilities as well as amortization of intangible assets and depreciation of property, plant and equipment of the discontinued coatings business. The depreciation and amortization (including impairments and reversals of impairments) of the discontinued coatings business included in Other amounted to €178 million in 2025. The prior-year figures were adjusted accordingly. Until reclassification to the disposal group, additions to intangible assets and property, plant and equipment (including acquisitions) of the discontinued coatings business included in Other amounted to €89 million.

BASF Report 2025
Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Segments 2024

Million €	Chemicals	Materials	Industrial Solutions^{a}	Nutrition & Care	Surface Technologies^{a,b}	Agricultural Solutions	Other^{b}	BASF Group
Sales	10,838	13,510	9,223	6,729	8,055	9,798	3,290	61,444
Intersegment transfers	3,962	825	558	446	33	50	93	5,968
Sales including transfers	14,800	14,335	9,781	7,176	8,088	9,848	3,384	67,412
Material consumption	5,280	7,057	4,394	2,838	6,427	3,257	2,870	32,124
Income from integral companies accounted for using the equity method	27	17	11	6	46	–	-105	2
Income from operations before depreciation and amortization (EBITDA)	1,314	1,769	1,412	819	405	1,659	-1,167	6,211
EBITDA before special items	1,342	1,805	1,437	814	470	1,938	-567	7,240
Income from operations (EBIT)	429	939	959	220	-392	984	-1,328	1,810
Special Items in EBIT	-74	-48	-35	-53	-595	-286	-622	-1,713
of which impairments and reversals of impairments	-46	-12	-10	-58	-530	-7	-21	-683
Assets	14,266	10,135	7,494	7,887	5,609	15,377	19,647	80,415
of which goodwill	215	196	1,317	871	993	3,341	787	7,721
other intangible assets	62	209	95	162	198	2,913	624	4,262
property, plant and equipment	9,938	5,373	2,436	3,607	1,516	2,132	2,196	27,197
integral investments accounted for using the equity method	854	136	14	39	473	–	882	2,399
Liabilities	3,316	2,946	2,170	2,347	1,088	3,309	28,356	43,532
Research and development expenses	80	180	187	149	179	919	276	1,969
Additions to property, plant and equipment and intangible assets (including acquisitions)^{b}	3,403	1,139	349	809	309	387	431	6,826
Depreciation and amortization of property, plant and equipment and intangible assets^{b}	885	830	453	599	797	675	408	4,648
of which impairments	65	25	21	87	530	18	35	781
reversals of impairments	1	2	0	0	0	0	1	5

a Since January 1, 2025, the business with chemical and refinery catalysts has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the Surface Technologies segment. The figures for 2024 have been adjusted accordingly.
b Other includes assets and liabilities as well as amortization of intangible assets and depreciation of property, plant and equipment of the discontinued coatings business. The depreciation and amortization (including impairments and reversals of impairments) of the discontinued coatings business included in Other amounted to €247 million in 2024. Additions to intangible assets and property, plant and equipment (including acquisitions) of the discontinued coatings business included in Other amounted to €190 million.

BASF Report 2025
Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Regions 2025

Million €		Europe	of which Germany	North America	Asia Pacific	South America, Africa, Middle East	BASF Group
Location of customer
Sales		23,019	5,774	15,667	15,068	5,903	59,657
Share	%	38.6	9.7	26.3	25.3	9.9	100.0
Location of company
Sales		24,373	9,990	16,148	14,766	4,370	59,657
Assets		34,692	19,873	17,429	20,119	3,933	76,174
of which intangible assets		4,278	2,177	4,435	749	231	9,692
property, plant and equipment		9,332	5,482	5,011	10,539	524	25,405
integral investments accounted for using the equity method		439	12	89	1,218	-	1,746
Additions to property, plant and equipment and intangible assets (including acquisitions)		1,750	1,047	1,090	1,845	102	4,787
Depreciation and amortization of property, plant and equipment and intangible assets including impairments and reversals of impairments		1,945	1,209	1,243	869	106	4,163

In the United States, sales to third parties in 2025 amounted to €13,803 million (previous year: €14,502 million) according to location of companies and €13,134 million (previous year: €13,912 million) according to location of customers. On December 31, 2025, the carrying amounts of intangible assets, property, plant and equipment, and investments accounted for using the equity method in the United States amounted to €9,137 million (previous year: €10,975 million).

In China, sales to third parties in 2025 amounted to €7,827 million (previous year: €7,424 million) according to location of companies and €7,794 million (previous year: €7,333 million) according to location of customers. On December 31, 2025, the carrying amounts of intangible assets, property, plant and equipment, and investments accounted for using the equity method amounted to €10,370 million (previous year: €10,753 million) in China.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Regions 2024

Million €	Europe	of which Germany	North America	Asia Pacific	America, Africa, Middle East	BASF Group
Location of customer
Sales	23,430	5,722	16,666	15,126	6,222	61,444
Share %	38.1	9.3	27.1	24.6	10.1	100.0
Location of company
Sales	24,734	10,329	17,067	14,817	4,826	61,444
Assets	36,083	20,656	19,483	20,557	4,292	80,415
of which intangible assets	4,986	2,563	5,516	1,229	252	11,983
property, plant and equipment	9,914	5,860	5,922	10,773	589	27,197
integral investments accounted for using the equity method	906	502	109	1,385	-	2,399
Additions to property, plant and equipment and intangible assets (including acquisitions)	1,953	1,249	1,193	3,549	131	6,826
Depreciation and amortization of property, plant and equipment and intangible assets including impairments and reversals of impairments	2,530	1,814	1,198	781	139	4,648

6 Earnings per share

Earnings per share

		2025	2024
Income after taxes from continuing operations	Million €	1,540	1,288
of which noncontrolling interests	Million €	85	134
Net income from continuing operations	Million €	1,455	1,154
Income after taxes from discontinued operations	Million €	185	165
of which noncontrolling interests	Million €	21	21
Net income from discontinued operations	Million €	164	144
Income after taxes	Million €	1,726	1,453
of which noncontrolling interests	Million €	107	155
Net income	Million €	1,619	1,298
Weighted average number of outstanding shares	1,000	891,742	892,522
Dilution effect from BASF's "plus" incentive share program	1,000	2,315	2,449
Weighted average number of shares for diluted earnings per share	1,000	894,057	894,971
Earnings per share
From continuing operations	€	1.63	1.29
Diluted	€	1.63	1.29
From discontinued operations	€	0.18	0.16
Diluted	€	0.18	0.16
From continuing and discontinued operations	€	1.82	1.45
Diluted	€	1.81	1.45

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

In accordance with IAS 33, earnings per share are determined by dividing earnings attributable to shareholders of BASF SE by the weighted average of outstanding shares. The average number of outstanding shares declined compared with 2024 due to the ongoing share buyback program. Pursuant to IAS 33, a potential dilutive effect must be considered in the diluted earnings per share for those BASF shares that will be granted in the future as part of BASF's "plus" share program. This applies regardless of the fact that the necessary shares are acquired on the market by third parties on behalf of BASF and that there are no plans to issue new shares. In 2025, there was a dilutive effect of €0.0047 (previous year: €0.0040) from the issue of "plus" shares.

7 Sales revenue

Accounting policies

Sales revenue from contracts with customers is recognized in the amount of the consideration BASF expects to receive in exchange for the goods or services when the customer obtains control of the goods or services. Control is considered to be transferred when the customer can direct the use of the goods or services and can obtain all substantial remaining benefits from them.

BASF primarily generates income from the sale of goods. Because the customer obtains control of the goods at a specific point in time, the corresponding sales revenue is recognized based on a given point in time. Determination of this point in time occurs in the context of an overall assessment of the circumstances which considers the existence of a present claim to payment, the legal title to the goods, actual physical possession of the goods, the transfer of risks and rewards as well as customer acceptance. The transfer of risks and rewards takes into account the underlying terms of delivery (especially Incoterms) and is of particular practical significance. According to these principles, sales revenue from the sale of goods is generally recognized upon delivery. If products are delivered to a consignment warehouse, BASF normally retains control of the goods. Accordingly, sales revenue is not recognized until the customer collects the goods from the consignment warehouse. Long-term supply agreements usually contain variable prices, which depend, among other factors, on the development of raw materials prices and variable volumes.

Services rendered to customers by BASF are invoiced according to work completed and recognized as revenue accordingly.

BASF generates a portion of its sales revenue from license agreements. Sales revenue from license agreements is recognized based on a point in time or a period of time depending on whether the licensee is being granted a right to use (revenue recognized at a point in time) or a right to access (revenue recognized over time) the intellectual property of BASF. Revenues from sales and usage-based royalties are recognized when the underlying sale or usage occurs.

Sales revenue from the sale of precious metals to industrial customers is recognized on delivery and the corresponding purchase prices are recorded as cost of sales. In the trading of precious metals and their derivatives with traders, where there is usually no physical delivery, revenues are netted against the corresponding costs.

Commodity swaps that do not lead to a transfer of economic control are eliminated.

If a consideration that is contractually agreed upon by a customer includes variable components, BASF estimates the amount of the consideration. Variable components are recognized as revenue only to the extent that it is highly probable that previously recognized sales revenue will not have to be cancelled as soon as there is no longer uncertainty about the actual amount of the consideration. Primarily rebates and other discounts are recognized as a reduction in revenue in accordance with the principle of individual measurement. BASF grants customers rebates, among other things, if the goods purchased by

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

the customer exceed a contractually defined threshold within the period specified. Rebates are usually deducted from amounts payable by the customer. Taking into account the specific terms of the underlying contract, BASF uses the expected value method or the most likely amount to estimate a variable consideration amount. The method is selected based primarily on number of possible results such as the number of volume thresholds with rebates. All available information, particularly historical values, is used for making estimates.

In some contracts, BASF grants the customer the right to return goods within a specific period of time, even if they meet the agreed specifications (sale with right of return). The actual expected amount of the consideration BASF is entitled to receive in this case is estimated using the expected value method. Refund liabilities are recognized in the amount of considerations paid by the customer for goods that are expected to be returned.

BASF opts to apply the practical expedient in IFRS 15.63 to not adjust the amount of the agreed consideration for the effects of a material financing component if, at the beginning of a contract, no more than one year is expected to lapse between the transfer of control of the goods or services and payment by the customer.

According to the practical expedient under IFRS 15.94, BASF recognizes the costs of obtaining a contract as an expense when they are incurred if the amortization period of the asset does not exceed one year.

BASF also applies the practical expedient in IFRS 15.121 of not reporting information on remaining performance obligations resulting from a contract with a maximum expected original term of one year. Furthermore, information on performance obligations is not reported if the resulting revenue is recognized in accordance with IFRS 15.B16.

BASF Report 2025
Notes | 335

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Explanation of sales revenue

Sales by division or by indication and sector

Million €	2025	2024
Petrochemicals	7,492	8,050
Intermediates	2,564	2,788
Chemicals	10,055	10,838
Performance Materials	6,425	6,848
Monomers	6,316	6,661
Materials	12,742	13,510
Dispersions & Resins	4,801	5,110
Performance Chemicals	3,794	4,114
Industrial Solutions	8,594	9,223
Care Chemicals	4,765	4,751
Nutrition & Health	1,744	1,978
Nutrition & Care	6,509	6,729
Coatings	347	486
Battery Materials	642	599
ECMS	7,978	6,970
Surface Technologies	8,967	8,055
Fungicides	2,838	3,014
Herbicides	3,059	2,965
Insecticides	1,089	1,102
Seed Treatment	575	598
Seeds & Traits	2,026	2,119
Agricultural Solutions	9,587	9,798
Other	3,202	3,290
BASF Group	59,657	61,444

Sales revenue of €35 million that was included in contract liabilities as of January 1, 2025, was recognized in 2025 (previous year: €44 million).

Sales revenue for the 2025 business year includes €87 million from performance obligations satisfied in prior periods (previous year: €261 million). This relates in particular to adjustments for sales and usage-based royalties as well as the reversal of over accruals for rebates and product returns from the previous year.

8 Functional costs

Under the cost of sales method, functional costs incurred by the operating functions are determined on the basis of cost center accounting. The functional costs particularly contain the personnel costs, depreciation and amortization accumulated on the underlying final cost centers as well as allocated costs within the cost accounting cycle. Operating expenses that cannot be allocated to the functional costs are reported as other operating expenses (for more information, see Note 9 from page 337 onward).

Cost of sales

Cost of sales includes all production and purchase costs of the goods that have been sold in the period (for more information, see Note 16 from page 366 onward). For services, the costs necessary for their provision are included in the cost of sales.

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Selling expenses

Selling expenses primarily include marketing and advertising costs, freight costs, packaging costs, distribution management costs, commissions and licensing costs.

General administrative expenses

General administrative expenses include the costs of the Corporate Center, of general management, the Board of Executive Directors and the Supervisory Board. They also include the costs of managing operating divisions and business units as well as the costs of the supporting services in departments such as accounting, legal, taxes and controlling.

Research and development expenses

Research and development expenses include the costs resulting from research projects as well as the necessary license fees for research activities.

9 Other operating income and expenses

Other operating income

Million €	2025	2024
Income from the adjustment and release of provisions recognized in other operating expenses	72	37
Revenue from miscellaneous other activities	213	147
Income from hedging transactions and LTI programs	57	47
Income from foreign currency transactions and the translation of financial statements in foreign currencies	50	60
Gains on divestitures and the disposal of noncurrent assets	798	71
Reversals of impairment losses on noncurrent assets	8	–
Gains/losses from precious metal trading	238	158
Income from refunds and government grants	468	305
Other	423	479
Other operating income	2,328	1,303

Income from the adjustment and release of provisions recognized in other operating expenses increased in 2025 compared to the previous year, mainly related to provisions for environmental protection measures in North America. Provisions were reversed or adjusted if, based on the circumstances on the balance sheet date, utilization was no longer expected, or expected to a lesser extent.

In both years, revenue from miscellaneous other activities primarily included income from rentals, catering operations, cultural events and logistics services. The increase in revenue over the previous year was largely offset by higher production costs.

In 2025, income from hedging transactions and LTI programs mainly included unrealized gains from derivatives used to hedge natural gas purchases. In 2024, this item primarily included income from the valuation of virtual and physical power purchase agreements.

Income from foreign currency transactions and the translation of financial statements in foreign currencies related to the translation of receivables and liabilities in foreign currencies and included income from the translation of companies' financial statements whose local currency is different from the functional currency. In the event of losses, these are reported under other operating expenses.

Gains on divestitures and the disposal of noncurrent assets in 2025 resulted mainly from the sale of the Brazilian decorative paints business and the disposal of the food and health performance ingredients business.

BASF Report 2025
Notes | 337

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Gains/losses from precious metal trading were generated exclusively in the Surface Technologies segment.

Income from refunds and government grants was largely attributable to government grants in the Surface Technologies segment, primarily relating to previous periods. Moreover, grants for regional business development in China and other support measures in various countries were recorded.

Other income in both years included income from a number of individual matters.

Other operating expenses

Million €	2025	2024
Restructuring and integration measures	1,109	682
Environmental protection and safety measures, costs of demolition and removal, and project costs not subject to mandatory capitalization	555	500
Depreciation, amortization and impairments of noncurrent assets and of the disposal groups	419	767
Costs from miscellaneous revenue-generating activities	187	128
Expenses from hedging transactions and LTI programs	110	89
Losses from foreign currency transactions and the translation of financial statements in foreign currencies	238	208
Losses from divestitures and the disposal of noncurrent assets	130	6
Impairment losses (including reversals of impairments) on business-related receivables	74	45
Expenses for derecognition of obsolete inventory	229	309
Other	905	1,075
Other operating expenses	3,957	3,809

In 2025, expenses from restructuring and integration measures related mainly to measures in connection with the ongoing cost savings programs and adjustments to production structures in Germany. In addition, expenses were incurred for global restructuring measures, mainly in the Chemicals segment.

Environmental protection and safety measures, costs of demolition and removal, and project costs not subject to mandatory capitalization were expensed if requirements for capitalization pursuant to IFRS were not met. Expenses for project costs not subject to mandatory capitalization amounted to €415 million in 2025 (previous year: €390 million) and in both years were attributable in particular to the new Verbund site in China and the Ludwigshafen site. In addition, expenses of €117 million in 2025 (previous year: €97 million) were incurred for additions to environmental provisions. In 2025, these mainly related to sites located in North America and Europe, whereas in the previous year they were primarily due to the Ludwigshafen site.

Depreciation, amortization and impairments of noncurrent assets and of the disposal groups in 2025 included impairments in the amount of €414 million. These comprised impairments on property, plant and equipment in particular in the Chemicals und Nutrition & Care segments and on intangible assets, mainly in the Agricultural Solutions segment. In 2024, impairments amounted to €749 million and mainly related to property, plant and equipment in the Surface Technologies segment, especially in the battery materials business, as well as property, plant and equipment in the Chemicals segment and property, plant and equipment and intangible assets in the Nutrition & Care segment (for more information, see Note 14 from page 354 onward).

Costs from miscellaneous revenue-generating activities relate to the corresponding items presented in other operating income.

Expenses from hedging transactions and LTI programs included expenses of €83 million in 2025 (previous year: €89 million), mainly from changes in market values of derivatives used to hedge natural

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

gas supplies as well as expenses for option premiums related to these hedges. LTI programs led to expenses in the amount of €27 million in 2025 (previous year: €1 million).

In both years, losses from divestitures and the disposal of noncurrent assets resulted from costs in connection with various divestment projects and purchase price adjustments for completed divestments.

The net expenses from the recognition and reversal of impairments on business-related receivables in 2025 included in particular impairments on receivables in the Agricultural Solutions division in the regions Europe and South America, Africa, Middle East.

In both years, other expenses included mainly expenses for litigation, for REACH, for the provision of services and other services and for warranties, as well as other expenses for social commitment. The previous year also included expenses associated with the out-of-court settlement of the multidistrict litigation proceedings in connection with aqueous film-forming foam products in the United States.

10 Investments accounted for using the equity method and other financial assets

Accounting policies

Joint ventures and associated companies are accounted for using the equity method. The carrying amounts of shareholdings are adjusted annually based on the pro rata share of net income, dividends and other changes in equity. Should there be indications of a reduction in the value of an investment, an impairment test is conducted and, if necessary, an impairment is recognized in the income statement. In the case of publicly listed associated companies, share prices are included in the impairment test and form the basis of valuation if there is an indication for permanent impairment or reversal of an impairment. Furthermore, earnings and the carrying amount are adjusted when accounting policies deviate or as a result of purchase price allocations.

10.1 Integral companies accounted for using the equity method

Income from integral companies accounted for using the equity method

Million €	2025	2024
Proportional income after taxes	99	158
of which joint ventures	90	136
associated companies	9	22
Other adjustments to income and expenses	-349	-156
of which joint ventures	-24	-16
associated companies	-325	-140
Income from integral companies accounted for using the equity method	-251	2

The only material equity-accounted shareholding that is classified as integral is BASF-YPC Company Ltd., Nanjing, China, in which BASF and Sinopec each hold 50%, and which operates the Verbund site in Nanjing.

Income from integral companies accounted for using the equity method decreased by a total of €253 million in 2025. This decline is primarily attributable to the sale of BASF's 49% stake in the Nordlicht 1 and 2 wind farm projects, which was completed in March 2025. This transaction resulted in a loss of €325 million, which is reflected in the other adjustments to income and expenses for associated companies. The previous year's figure included impairments of €108 million for these projects.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Reconciliation of the carrying amounts of integral shareholdings accounted for using the equity method

	Joint ventures		Associated companies
Million €	2025	2024	2025	2024
Carrying amounts according to the equity method as of the beginning of the year	1,798	1,842	600	212
Proportional income after taxes and other adjustments to income and expenses	66	120	-316	-117
Proportional changes in other comprehensive income	-109	-12	-8	9
Total comprehensive income	-43	108	-325	-109
Changes in the scope of consolidation	-	-	3	-
Additions	26	8	13	598
Disposals	-	-	-92	-80
Transfers	-107	-160	-127	-21
Carrying amounts according to the equity method as of the end of the year	1,674	1,798	72	600

Proportional changes in other comprehensive income included income and expense recognized directly in equity and related to currency effects as well as to changes in the market values of derivatives.

Changes in the scope of consolidation in 2025 resulted from the inclusion of Mingyang BASF New Energy (Zhanjiang) Co., Ltd., Xuwen, China, which was accounted for using the equity method for the first time. Although BASF holds only 10% of the company, extensive co-determination rights justify significant influence and thus its classification as an associated company.

Additions at joint ventures in 2025 resulted only from capital injections. The divestitures of Markor Meiou Chemical (Xinjiang) Co., Ltd., Korla, China, and Nordlicht Offshore Wind GmbH, Hamburg, Germany, as well as capital reductions at Yara Freeport LLC, Freeport, Texas, led to disposals at associated companies.

The additions in 2024 primarily involved the investment in the associated company Nordlicht Offshore Wind GmbH. The disposals in 2024 resulted mainly from capital reductions at the associated companies Shanghai Lianheng Isocyanate Co. Ltd., Shanghai, China as well as Markor Meiou Chemical (Xinjiang) Co., Ltd., and Yara Freeport LLC.

Transfers in both years primarily included dividend payments from the joint ventures Heesung Catalysts Corporation, Seoul, South Korea, Southeast Texas Pipelines LLC, Houston, Texas, BASF-YPC Company Ltd., N.E. Chemcat Corporation, Tokyo, Japan, and in 2025 additionally a dividend payment from the associated company BASF Huntsman Shanghai Isocyanate Investment B.V., Arnhem, Netherlands.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Additional information on the BASF-YPC Company Ltd. material integral investment accounted for using the equity method

Financial information on BASF-YPC Company Ltd., Nanjing, China (100%)

Million €	Dec. 31, 2025	Dec. 31, 2024
Balance sheet
Noncurrent assets	824	846
Current assets	721	943
of which cash and cash equivalents	315	205
Assets	1,545	1,789
Equity	1,357	1,559
Noncurrent liabilities	1	1
of which financial indebtedness	-	-
Current liabilities	187	229
of which financial indebtedness	-	-
Total equity and liabilities	1,545	1,789
Statement of income	2025	2024
Sales revenue	2,014	2,627
Amortization/impairments and reversals of impairments	-125	-135
Interest income	4	5
Interest expenses	-	-
Income taxes	16	-19
Income after taxes and other adjustments to income and expenses	-48	55
Changes in other comprehensive income	-123	54

Reconciliation of the carrying amount of the shareholding in BASF-YPC Company Ltd.

Million €		2025	2024
BASF interest	%	50	50
Carrying amount as of the beginning of the year		780	746
Proportional income after taxes and other adjustments to income and expenses		-24	28
Proportional changes in other comprehensive income		-62	27
Dividends received		-16	-21
Carrying amount as of the end of the year		678	780

10.2 Non-integral companies accounted for using the equity method

Income from non-integral companies accounted for using the equity method

Million €	2025	2024
Proportional income after taxes	1,650	269
Other adjustments to income and expenses	-344	382
Income from non-integral companies accounted for using the equity method	1,306	651

The non-integral companies accounted for using the equity method are exclusively associated companies.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Stahl Lux 2 S.A., Luxembourg (BASF interest: $16.32\%$ ), and CIMO Compagnie industrielle de Monthey S.A., Monthey, Switzerland (BASF interest: $15.0\%$ ), are classified as associated companies because BASF is represented in the relevant boards and can thus exercise significant influence over the companies.

In both years, income from non-integral companies accounted for using the equity method primarily related to the shareholding in Wintershall Dea GmbH, Kassel, Germany. The increase in income after taxes of Wintershall Dea in 2025 resulted mainly from income for reimbursements under the German federal guarantees that exist for the shareholdings in Russia. In this context, the goodwill of €389 million included in the carrying amount was fully impaired, which is reported under other adjustments to income and expenses. In the previous year, this item included income of €390 million before taxes from the sale of Wintershall Dea's E&P business to Harbour Energy plc., London, United Kingdom.

As of December 31, 2025, Harbour Energy shares were quoted at £1.97 per share. The market value of BASF's stake in Harbour Energy was therefore €1,481 million as of the balance sheet date, while the carrying amount was approximately €1,941 million. For this reason, BASF conducted an impairment test on this investment. The determined value in use exceeded the carrying amount, so there was no need to recognize an impairment loss. In addition to assumptions regarding production and cost trends, the valuation was primarily impacted by expected oil and gas prices and discount rates. The latter ranged from 7.4% to 13.2%, depending on country risks. For the oil price (Brent crude), an increase of $5 per barrel in each of the two subsequent years was assumed, starting from $65 per barrel in 2026. For the natural gas price (TTF), however, a downward trend from around €30/MWh in 2026 to €25.6/MWh in 2028 was assumed. For the following years, prices were assumed to remain constant in real terms.

The value in use would have corresponded to the carrying amount if the discount rates had increased by 1 percentage point or if oil prices had decreased by $4\%$ or gas prices by $10\%$ over the entire planning period.

For more information on Wintershall Dea and Harbour Energy, see Note 3 from page 318 onward and the "Annual Report & Accounts" of Harbour Energy plc.

Reconciliation of carrying amounts of non-integral associated companies accounted for using the equity method

	Associated companies
Million €	2025	2024
Carrying amounts according to the equity method as of the beginning of the year	3,411	4,518
Proportional income after taxes and other adjustments to income and expenses	1,306	262
Proportional changes in other comprehensive income	-170	112
Total comprehensive income	1,136	373
Changes in the scope of consolidation and disposals	-35	-3,512
Additions	-	2,294
Transfers	-1,264	-262
Carrying amounts according to the equity method as of the end of the year	3,247	3,411

In 2025, proportional changes in other comprehensive income included positive changes in the fair value of derivatives as well as offsetting currency effects, primarily at Harbour Energy.

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

In 2024, changes in the fair value of derivatives and currency effects at Harbour Energy were also the main reason for changes in other comprehensive income. In addition, as a result of the sale of Wintershall Dea's E&P business to Harbour Energy, €43 million in currency effects and €2 million in changes in the fair value of derivatives were recognized as expenses in the disposal gain.

Changes in the scope of consolidation and disposals in 2025 resulted from the sale of shares under Harbour Energy's share buyback program. The company announced the launch of a share buyback program with a volume of up to $100 million on August 7, 2025. BASF participated proportionally to its shareholding in this program during the year 2025, so its stake in Harbour Energy did not change significantly.

The changes in the scope of consolidation and disposals in 2024 particularly related to the disposal of the proportionate carrying amount of the shareholding in Wintershall Dea attributable to the E&P business sold to Harbour Energy.

The additions in the previous year included the shareholding in Harbour Energy at fair value plus directly attributable incidental acquisition costs.

Transfers mainly included dividend payments from Wintershall Dea in both years as well as from Harbour Energy in 2025.

BASF Report 2025
Notes | 343

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Additional information on the Harbour Energy and Wintershall Dea material non-integral shareholdings accounted for using the equity method

At the time of the preparation of these Consolidated Financial Statements, detailed financial information for Harbour Energy's 2025 business year was not yet available. For further information, please see the annual financial statements of Harbour Energy, which are scheduled to be published on March 5, 2026.

Financial information on Harbour Energy plc, London, United Kingdom (100%)

Million €	Dec. 31, 2024
Balance sheet
Noncurrent assetsa	26,207
Current assets	3,498
of which cash and cash equivalents	775
Assets of disposal groups	267
of which cash and cash equivalents	11
Assets	29,972
Equity attributable to shareholders of Harbour Energy plc	5,150
Subordinate bonds issued by Harbour Energy	1,504
Equity	6,654
Noncurrent liabilities	17,914
of which financial indebtedness	4,057
Current liabilities	5,180
of which financial indebtedness	976
Liabilities of disposal groups	224
of which financial indebtedness	-
Total equity and liabilities	29,972
Statement of income	2024
Sales revenue	3,335
Depreciation and amortization/impairment and reversals of impairments	-1,325
Interest income	33
Interest expenses	-73
Income taxes	-849
Income after taxes and other adjustments to income and expenses	-151
Changes in other comprehensive income and other changes in equity	320

a Goodwill from fair value adjustments is shown in the following table.

Reconciliation of the carrying amount of the shareholding in Harbour Energy

Million €		2025	2024
BASF's share of equity attributable to shareholders of Harbour Energy plc	%	39.59	39.59
Carrying amount of shareholding as of January 1, 2025 / September 3, 2024		2,361	2,294
of which proportional goodwill from fair value adjustments		529	498
Proportional income after taxes and other adjustments to income and expenses		-47	-60
Proportional changes in other comprehensive income and other changes in equity		-186	127
Disposals resulting from the share buyback program		-35	—
Dividends received		-151	—
Carrying amount as of the end of the year		1,941	2,361
of which proportional goodwill from fair value adjustments		468	529

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The following table contains financial information on the Wintershall Dea material non-integral shareholding accounted for using the equity method, including adjustments for fair value made at initial recognition and the resulting effects on earnings.

Financial information on Wintershall Dea, Kassel, Germany (100%)

Million €	Dec. 31, 2025	Dec. 31, 2024
Balance sheet
Noncurrent assetsa	113	266
Current assets	2,348	1,403
of which cash and cash equivalents	1,436	1,186
Assets of disposal groups	70	2
of which cash and cash equivalents	-	-
Assets	2,531	1,671
Equity attributable to shareholders of Wintershall Dea GmbHb	1,455	562
Subordinate bonds issued by Wintershall Dea	-	-
Equity	1,455	562
Noncurrent liabilities	197	522
of which financial indebtedness	-	28
Current liabilities	879	587
of which financial indebtedness	210	246
Liabilities of disposal groups	3	-
of which financial indebtedness	-	-
Total equity and liabilities	2,531	1,671
Statement of incomec	2025	2024
Sales revenue	48	139
Depreciation and amortization/impairment and reversals of impairments	-641	39
Interest income	38	85
Interest expenses	-13	-20
Income taxes	-21	-44
Income after taxes and other adjustments to income and expenses from continuing operations	1,792	41
Income after taxes and other adjustments to income and expenses from discontinued operations	-	426c
Changes in other comprehensive income	-26	-26

a Goodwill resulting from fair value adjustments is shown in the following table.
b Wintershall Dea AG until September 23, 2024
c This does not include earnings from the spin-off recognized in Wintershall Dea's 2024 financial statements or the effects on earnings resulting from presentation of the assets and liabilities transferred to Harbour Energy as a disposal group (€4,420 million).

Reconciliation of the carrying amount of the shareholding in Wintershall Dea

Million €		2025	2024
BASF's share of equity attributable to shareholders of Wintershall Dea GmbH	%	72.70	72.70
Carrying amount as of the beginning of the year		798	4,251
of which proportional goodwill from fair value adjustments		389	2,310
Disposal of the carrying amount attributable to the business sold to Harbour Energy		-	-2,956
Proportional income after taxes and other adjustments to income and expenses		1,302	340
Proportional changes in other comprehensive income		18	-19
Dividends received / capital repayments		-1,061	-818
Carrying amount as of the end of the year		1,058	798
of which proportional goodwill from fair value adjustments		-	389

a Wintershall Dea AG until September 23, 2024

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

10.3 Other shareholdings and financial assets

Net income from other shareholdings

Million €	2025	2024
Dividends and similar income	41	35
Income from the disposal of / measurement at fair value of shareholdings	9	31
Income from profit transfer agreements / tax allocation to shareholdings	5	6
Income from other shareholdings	55	72
Expenses from loss transfer agreements	-22	-103
Losses from the disposal of / write-downs to fair value of shareholdings	-26	-18
Expenses from other shareholdings	-48	-121
Net income from other shareholdings	7	-49

Net income from other shareholdings in 2025 increased year on year by €56 million.

Carrying amounts of other financial assets

Million €	Dec. 31, 2025	Dec. 31, 2024
Other shareholdings	446	533
Long-term securities	609	632
Other financial assets	1,055	1,165

BASF Report 2025
Notes | 346

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

11 Financial result

Financial result

Million €	2025	2024
Interest income from cash and cash equivalents	306	337
Interest and dividend income from securities and loans	32	32
Interest income	338	369
Interest expenses	-893	-922
Interest result	-555	-553

Reversals of write-downs on / income from securities and loans	28	18
Income from the capitalization of borrowing costs	152	146
Interest income on income taxes	13	72
Miscellaneous financial income	42	29
Other financial income	235	264
Write-downs on / losses from securities and loans	-13	-7
Net interest expense from underfunded pension plans and similar obligations	-31	-89
Unwinding the discount on other noncurrent liabilities	-27	-18
Interest expenses on income taxes	-31	-7
Miscellaneous financial expenses	-79	-141
Other financial expenses	-180	-262
Other financial result	55	2

Financial result	-500	-551

Interest expenses declined primarily because of lower interest expenses for financial indebtedness.

The decrease in interest income on income taxes resulted from lower reversals of provisions for interest on taxes and lower tax credits.

The higher miscellaneous financial income resulted from a financial guarantee and the valuation of an option written as part of a divestiture.

The decrease in miscellaneous financial expenses was primarily due to lower expenses for financial guarantees and lower net expenses associated with the translation of loans and the measurement of the corresponding hedging instruments against interest and currency risks.

BASF Report 2025
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Combined Management's Report
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Further Information

12 Income taxes

Accounting policies

In Germany, a uniform corporate income tax rate of 15.0% as well as a solidarity surcharge of 5.5% thereon are levied on all distributed and retained earnings. In addition to corporate income tax, income generated in Germany is subject to a trade tax. It varies depending on the municipality in which the company is represented. The weighted average tax rate was 14.7% in 2025 (previous year: 14.6%).

Following the enactment of the act for an immediate tax-based investment program to strengthen Germany as a business location in July 2025, the German corporate income tax rate will be reduced stepwise between 2028 and 2032 from the current level of 15% to 10% in 2032. This resulted in effects on deferred tax assets and liabilities in 2025. These effects were determined based on detailed tax planning or, where not available, on best-estimate assumptions, and constitute the primary component of the 'changes in the tax rate' line in the reconciliation. Earnings of foreign group entities are taxed at the applicable local tax rates.

Deferred taxes are recorded for temporary differences between the carrying amount of assets and liabilities in the financial statements according to IFRS and the carrying amounts for tax purposes as well as for tax loss carryforwards and unused tax credits. These also include temporary differences arising from business combinations, with the exception of goodwill. Deferred tax assets and liabilities are calculated using the respective country-specific tax rates applicable for the period in which the asset or liability is realized or settled. Tax rate changes enacted or substantively enacted on or before the balance sheet date are taken into consideration.

Deferred tax assets are offset against deferred tax liabilities provided they are related to the same taxation authority. Surpluses of deferred tax assets are only recognized provided the tax benefits are likely to be realized. The valuation of deferred tax assets is based on the assessment of the ability to utilize tax loss carryforwards and unused tax credits. This depends on whether future taxable profits will exist during the period in which temporary differences are reversed and in which tax loss carryforwards and unused tax credits can be claimed. The assessment of recoverability of deferred tax assets is based on internal projections of the future earnings of the particular taxable entity.

Changes in deferred taxes in the balance sheet are recorded as deferred tax expense or income unless the underlying transaction is recognized directly in equity or in income and expenses recognized in equity. For those effects which have been recognized in equity, changes to deferred tax assets and tax liabilities are also recognized directly in equity.

Deferred tax liabilities are recognized for differences between the proportional IFRS equity and the tax base of the investment in a consolidated subsidiary if a reversal of these differences is expected in the foreseeable future. Deferred tax liabilities are recognized for dividend distributions planned for the following year if these distributions lead to a reversal of temporary differences.

Provisions for German trade tax, corporate income tax and similar income taxes are calculated and recognized based on the expected taxable income of the consolidated companies less any prepayments that have been made. Provisions are set up for interest accrued. This interest is reported under other financial result, not tax expense. Other taxes to be assessed are considered accordingly.

IFRIC 23 clarifies the application of the recognition and measurement policies from IAS 12 when there is uncertainty regarding income tax-related treatment of individual transactions. They are accounted for with the assumption that tax authorities will examine the questionable transaction and have all relevant information. The amount of risk provisions is calculated and reviewed with consideration for the results of past tax audits as well as the legal assessment of not yet audited transactions and the risk of a deviating

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Consolidated Financial Statements
Further Information

tax-related interpretation by the tax authorities. The most probable value of the individual risks is recognized.

BASF falls within the scope of the OECD Pillar Two Model Rules. The relevant Pillar Two legislation has been enacted and is in effect in Germany and in other jurisdictions in which BASF operates.

BASF applies the exception in IAS 12 whereby no deferred tax assets or liabilities are recognized in connection with Pillar Two income taxes under the OECD Model Rules; nor are any disclosures regarding the matter provided.

Tax expense and tax rate

The BASF Group tax rate amounted to 37.1% in 2025 and 30.8% in the previous year. In both years, the tax rate was impacted by the nonrecognition of deferred tax assets, especially in Germany.

The application of the Pillar Two legislation resulted in an additional expense of €18 million (previous year: €22 million), which was included in income taxes.

The tax effects of various underlying matters are presented in the following reconciliation of income taxes and the effective tax rate. An expected tax rate of 30% is continued to be assumed, as the overall tax rate applicable for 2025 remains unchanged.

Tax expense

Million €	2025	2024
Current tax expense	1,202	940
Corporate income tax, solidarity surcharge and trade taxes (Germany)	23	24
Foreign income tax	1,083	1,001
Taxes for prior years	96	-85
Deferred tax expense (+) / income (-)	-295	-367
from changes in temporary differences	21	-284
from changes in tax loss carryforwards/unused tax credits	-27	34
from changes in the tax rate	-131	5
from the adjustment of valuation allowances for deferred tax assets	-158	-122
Income taxes	907	573

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Combined Management's Report

Consolidated Financial Statements

Further Information

Reconciliation of income taxes and the effective tax rate

	2025		2024
	Million €	%	Million €	%
Income before income taxes	2,447		1,861
Expected tax based on German tax rate (30%)	733	30.0	558	30.0
Foreign tax rate differential	-155	-6.3	-233	-12.5
Tax-exempt income	-206	-8.4	-226	-12.1
Nondeductible expenses	414	16.9	331	17.8
Income of companies accounted for using the equity method (income after taxes)	-315	-12.9	-196	-10.5
Taxes for prior years (current and deferred taxes)	88	3.6	-62	-3.3
Deferred tax liabilities for the future reversal of temporary differences associated with shares in participating interests	-6	-0.2	-30	-1.6
Changes in the tax rate	-131	-5.4	5	0.3
Nonrecognition / changes in valuation allowances for deferred tax assets	452	18.5	358	19.2
Other	33	1.3	67	3.6
Income taxes / effective tax rate	907	37.1	573	30.8

Deferred taxes

Deferred taxes are shown in the following table based on the corresponding balance sheet items.

Deferred tax assets and liabilities 2025

Million €	Jan. 1, 2025, net	Effects recognized in income	Effects recognized in equity (OCI)	Business combinations	Other	Dec. 31, 2025, net	Deferred tax assets	Deferred tax liabilities
Intangible assets	-522	7	-8	-3	99	-427	136	-563
Property, plant and equipment	-1,384	170	91	-5	60	-1,068	173	-1,241
Financial assets	2	3	5	-	-34	-24	13	-38
Inventories and accounts receivable	-491	228	11	-	2	-250	227	-477
Provisions for pensions and similar obligations	688	-170	-335	-2	-21	160	248	-88
Other provisions and liabilities	1,064	-110	-98	7	-22	841	1,189	-348
Tax loss carryforwards	205	166	-9	-	-5	357	357	-
Other	7	2	-6	-	-1	2	48	-45
Deferred tax assets (liabilities) before netting	-430	296	-349	-3	78	-408	2,391	-2,800
Netting	-	-	-	-	-	-	-1,847	1,847
Deferred tax assets (liabilities) after netting	-430	296	-349	-3	78	-408	544	-953

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Deferred tax assets and liabilities 2024

Million €	Jan. 1, 2024, net	Effects recognized in income	Effects recognized in equity (OCI)	Business combinations	Other	Dec. 31, 2024, net	Deferred tax assets	Deferred tax liabilities
Intangible assets	-678	128	7	-1	22	-522	193	-715
Property, plant and equipment	-1,363	40	-64	2	1	-1,384	172	-1,556
Financial assets	18	-3	-6	-	-6	2	12	-10
Inventories and accounts receivable	-602	121	-15	1	4	-491	330	-821
Provisions for pensions and similar obligations	862	39	-213	-1	1	688	856	-168
Other provisions and liabilities	1,122	-13	-49	-	4	1,064	1,368	-304
Tax loss carryforwards	163	56	-18	-	4	205	205	-
Other	-44	-1	49	-	3	7	53	-46
Deferred tax assets (liabilities) before netting	-522	367	-309	1	33	-430	3,189	-3,620
Netting	-	-	-	-	-	-	-2,615	2,615
Deferred tax assets (liabilities) after netting	-522	367	-309	1	33	-430	574	-1,005

Deferred tax assets on deductible temporary differences in the amount of €627 million (previous year: €694 million) were not recognized in 2025, as their utilization at reversal was not reasonably certain.

No deferred tax liabilities on income or withholding taxes were recognized for temporary differences from undistributed earnings of subsidiaries as these earnings are either not subject to taxation on payout or are expected to be reinvested for an indefinite period of time. The deferred tax liabilities not recognized in this context amounted to €111 million in 2025 (previous year: €156 million).

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Tax loss carryforwards

The table below presents the expiration of tax loss carryforwards for which no deferred tax assets were recognized.

Expiration of tax loss carryforwards for which no deferred taxes have been recognized

Million €	2025	2024
Within one year	3	2
Within two to five years	129	327
After five years (including non-expiring tax loss carryforwards)	14,719	11,496
Tax loss carryforwards	14,851	11,825
of which German income tax	6,367	5,046
of which German trade tax	6,518	5,251
of which interest carryforward from the German interest barrier	718	482
of which foreign income tax	1,087	672

Net surpluses of deferred tax assets for companies that reported tax losses in 2025 or 2024 totaled €125 million as of December 31, 2025 (previous year: €104 million). Deferred tax assets were recognized because, due to planned earnings, the use of temporary differences or loss carryforwards is expected.

Income tax liabilities

Income tax liabilities include assessed income taxes as well as estimated income taxes not yet assessed for the current year.

Contingent liabilities related to income taxes amounted to €88 million (previous year: €89 million).

BASF Report 2025
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13 Noncontrolling interests

Noncontrolling interests in profits and losses

Million €	2025	2024
Noncontrolling interests in profits	144	199
Noncontrolling interests in losses	-38	-44
Total	107	155

Noncontrolling interests in profits decreased versus the prior year, in particular due to a lower earnings contribution from BASF TotalEnergies Petrochemicals LLC, Houston, Texas, which also generated the largest share of noncontrolling interests in profits. In each of the years 2025 and 2024, noncontrolling interests in profits included €21 million from the discontinued coatings business.

Income and expenses recognized in equity that were attributable to noncontrolling interests totaled -€134 million in 2025 and €54 million in 2024. These effects mainly resulted from currency translation in both years.

Noncontrolling interests

		December 31, 2025		December 31, 2024
		Equity interest		Equity interest
Group company	Partner	%	Million €	%	Million €
BASF India Limited, Mumbai, India	Free float	26.67	99	26.67	110
BASF PETRONAS Chemicals Sdn. Bhd., Kuala Lumpur, Malaysia	PETRONAS Chemicals Group Berhad, Kuala Lumpur, Malaysia	40.00	180	40.00	214
BASF Shanghai Coatings Co., Ltd., Shanghai, China	Shanghai Huayi Fine Chemical Co., Ltd, Shanghai, China	40.00	106	40.00	129
BASF Shanshan Battery Materials Co., Ltd., Changsha, China	Ningbo Yongxiang Investment Co., Ltd., Ningbo, China	49.00	241	49.00	275
BASF TODA Battery Materials LLC, Yamaguchi, Japan	TODA KOGYO CORP., Hiroshima, Japan	34.00	25	34.00	33
BASF TotalEnergies Petrochemicals LLC, Houston, Texas	TotalEnergies Petrochemicals & Refining USA, Inc., Houston, Texas	40.00	249	40.00	240
Shanghai BASF Polyurethane Company Ltd., Shanghai, China	Shanghai Huayi Holdings Group Co., Ltd, Shanghai, China, and SINOPEC Shanghai Gaojiao Petrochemical Company Limited, Shanghai, China	30.00	116	30.00	128
Other			127		154
Total			1,143		1,284

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

14 Fixed assets

Accounting policies

Intangible assets

Goodwill is only written down in the case of an impairment. Impairment testing for goodwill is performed once a year and whenever there is an indication of impairment. Goodwill impairments are not reversed.

Acquired intangible assets (excluding goodwill) with defined useful lives are generally measured at cost less straight-line amortization and impairments. The useful life is determined using the period of the underlying contract or the period of time over which the intangible asset can be expected to be used.

Intangible assets with indefinite useful lives are mainly trade names and trademarks that have been acquired as part of acquisitions. These are measured at cost and tested for impairment annually or when there is an indication that their value has declined.

Internally generated intangible assets primarily comprise internally developed software. Such software and other internally generated intangible assets are measured at cost and amortized over their estimated useful lives. Impairments are recognized if the carrying amount of an asset exceeds the recoverable amount. In addition to those costs directly attributable to the asset, costs of internally generated intangible assets also include an appropriate portion of overhead costs.

The expected useful lives and amortization methods of intangible assets are based on historical values, plans and estimates and are reviewed on each balance sheet date.

Depending on the type of intangible asset, amortization is reported under cost of sales, selling expenses, research and development expenses or other operating expenses.

Property, plant and equipment

Property, plant and equipment are measured at cost less scheduled depreciation over their useful lives and impairment. The revaluation method is not applied. Low-value assets are fully expensed in the year of acquisition.

The cost of self-constructed plants includes direct costs, appropriate allocations of material and production overhead costs, and a share of the general administrative costs of the divisions involved in the construction of the plants.

Expenditures related to the scheduled maintenance of large-scale plants are capitalized separately and depreciated using the straight-line method over the period until the next planned turnaround. Costs for the replacement of components are recognized as assets if an additional future benefit is expected. The carrying amount of the replaced components is derecognized. Costs for maintenance and repair as part of normal business operations are recognized as an expense.

Investment properties held to realize capital gains or rental income are immaterial. They are valued at the lower of fair value or cost less depreciation.

The estimated useful lives and depreciation methods of property, plant and equipment are based on historical values, plans and estimates. The depreciation methods, useful lives and residual values are reviewed at each balance sheet date. Movable and immovable property, plant and equipment are principally depreciated using the straight-line method.

Borrowing costs: If borrowing costs are directly incurred as part of the acquisition, construction or production of a qualifying asset, they are capitalized as part of the acquisition or production cost of that asset. A qualifying asset is an asset for which the process necessary to make it ready for its intended use or sale is longer than one year. Borrowing costs are capitalized up to the date the asset is ready for its

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Further Information

intended use. Borrowing costs were calculated based on a rate of 2.25% (previous year: 2.25%). All other borrowing costs are recognized as an expense in the period in which they are incurred.

Government grants: Government grants for the acquisition or construction of property, plant and equipment reduce the acquisition or construction cost of the respective assets (net method). Other government grants or government assistance are recognized immediately as other operating income or treated as deferred income and released over the underlying period.

Impairment tests

Impairment tests are carried out on intangible assets, property, plant and equipment, and goodwill whenever certain triggering events indicate potential impairment. External triggering events include, for example, changes in customer industries or technologies used, economic downturns, or expected impacts from climate change. Internal triggering events for an impairment test include lower product profitability, planned restructuring measures or physical damage to assets. In addition, goodwill and intangible fixed assets with an indefinite useful life are tested for impairment annually.

Impairment tests entail a comparison of the carrying amount and the recoverable amount. The recoverable amount is the higher of fair value less costs to sell and the value in use. As a rule, value in use is determined using the discounted cash flow method. The estimation of cash flows and the assumptions used consider all information available on the respective balance sheet date about the future development of the operating business. Actual future developments may vary. Impairment testing relies upon the cash-generating unit's long-term earnings forecasts, which are based on macroeconomic trends.

The weighted average cost of capital (WACC) after taxes based on the capital asset pricing model, which is used in calculating the discount for cash flows, plays an important role in impairment testing. It comprises a risk-free interest rate, the market risk premium and an industry-specific spread for the credit risk. Additional important parameters are the detailed planning period and, if applicable, the terminal growth rates used.

An impairment of assets (excluding goodwill) is recognized if the recoverable amount of the asset is lower than the carrying amount. An impairment is recognized for the difference between the carrying amount and the recoverable amount. If the reasons for impairment of an asset (excluding goodwill) no longer exist, the write-downs are reversed up to the value of the asset, had an impairment not been recognized. Impairments and reversals of impairments are reported in other operating income and expenses.

The goodwill impairment test is based on cash-generating units or groups of cash-generating units. At BASF, these correspond to the divisions. If there is a need for impairment, the existing goodwill is, if necessary, completely written off as a first step. Any additional impairment is then allocated to the remaining assets of the cash-generating unit in proportion to their carrying amounts. Goodwill impairments are reported under other operating expenses.

The respective recoverable amounts were generally determined using the value in use. Plans approved by company management and their respective cash flows for the next five years were used.

A terminal value was calculated for the subsequent period using a forward projection from the last detailed planning year as a perpetual annuity. Planning is based on experience, current performance and management's best possible estimates on the future development of individual parameters. These include sales revenue (excluding precious metals), contribution margins, fixed costs and investments from which income from operations before depreciation and amortization and, based on this, the EBITDA margin are determined. Market assumptions regarding, for example, natural gas and raw materials prices, exchange rates, economic development, inflation expectations and market growth of the

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Consolidated Financial Statements

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respective customer industries are included based on external macroeconomic and industry-specific sources.

In addition, planning is also based on the strategies of the individual strategic business units and divisions which comprise the respective cash-generating units. The digitalization and sustainability trends identified in the strategies are thus taken into account in the respective impairment tests (for more information on strategy and identified digitalization and sustainability trends, see from page 15 and from page 25 onward in the Combined Management's Report).

14.1 Explanation of intangible assets

The weighted average amortization periods of intangible assets were as follows:

Weighted average amortization in years

	2025	2024
Distribution and similar rights	14	14
Product rights, licenses and trademarks	18	19
Know-how, patents and production technologies	17	15
Internally generated intangible assets	10	8
Other rights and values	6	7

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The following table shows the development of intangible assets.

Development of intangible assets 2025

Million €	Distribution and similar rights	Product rights, licenses and trademarks	Know-how, patents and production technologies	Internally generated intangible assets	Other rights and valuesa	Goodwill	Total
Cost
As of January 1, 2025	1,973	1,319	4,346	317	785	8,510	17,249
Changes in the scope of consolidation	-	-	-	-	-1	-	-1
Additions	-1	3	43	63	14	-	122
Disposals	-80	-17	-476	-35	-122	-	-729
Transfers	2	-	-69	8	26	-	-33
Transfers to disposal groups	-972	-44	-125	-53	-31	-1,416	-2,642
Currency effects	-135	-65	-243	-1	-14	-541	-998
As of December 31, 2025	787	1,196	3,475	300	657	6,553	12,968
Accumulated amortization
As of January 1, 2025	1,190	368	2,021	217	681	789	5,267
Changes in the scope of consolidation	-	-	-	-	-1	-	-1
Additions	107	61	224	39	45	-	476
of which impairments	-	-	8	7	-	-	15
Disposals	-80	-17	-476	-35	-119	-	-726
Transfers	-	-	-2	1	-	-	0
Transfers to disposal groups	-567	-15	-106	-38	-13	-743	-1,482
Currency effects	-85	-15	-102	-1	-9	-46	-258
As of December 31, 2025	565	383	1,560	184	584	-	3,275
Net carrying amount as of December 31, 2025	222	813	1,915	116	73	6,553	9,692

a Including licenses to such rights and values

Additions in 2025 related primarily to internally developed software in the Agricultural Solutions segment and not allocated to a segment, as well as production technologies in the Surface Technologies segment.

Disposals of intangible assets with a gross carrying amount of €729 million primarily concerned fully amortized assets.

The transfers to disposal groups related to the intangible assets of the coatings business as well as the Brazilian decorative paints business.

Currency effects reduced intangible assets by €740 million and resulted primarily from the devaluation of the U.S. dollar against the euro.

In 2025, additions to accumulated amortization contained impairments of €15 million. These related mainly to know-how and production technologies in the Agricultural Solutions segment and not allocated to a segment, as well as internally generated intangible assets not allocated to a segment.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Development of intangible assets 2024

Million €	Distribution and similar rights	Product rights, licenses and trademarks	Know-how, patents and production technologies	Internally generated intangible assets	Other rights and valuesa	Goodwill	Total
Cost
As of January 1, 2024	2,244	1,309	4,296	323	898	8,269	17,338
Changes in the scope of consolidation	1	-	-	-	-	-	1
Additions	-	2	72	44	14	-	132
Additions from acquisitions	-	-	1	-	-	-	1
Disposals	-226	-21	-102	-41	-148	-4	-541
Transfers	1	-	-9	-10	17	-	-1
Transfers to disposal groups	-86	-4	-40	-	-	-5	-135
Currency effects	40	33	128	1	4	250	455
As of December 31, 2024	1,973	1,319	4,346	317	785	8,510	17,249
Accumulated amortization
As of January 1, 2024	1,303	319	1,770	196	765	769	5,122
Changes in the scope of consolidation	1	-	-	-	-	-	1
Additions	156	67	333	61	53	-	670
of which impairments	1	5	60	20	1	-	87
Disposals	-226	-21	-104	-41	-139	-	-531
Transfers	-	-	-	-	-	-	-
Transfers to disposal groups	-71	-4	-35	-	-	-	-110
Currency effects	27	7	57	-	3	20	114
As of December 31, 2024	1,190	368	2,021	217	681	789	5,267
Net carrying amount as of December 31, 2024	783	950	2,325	101	103	7,721	11,983

a Including licenses to such rights and values

In both years, BASF's goodwill was allocated to 20 cash-generating units, which are defined either on the basis of business units or at a higher level.

In the 2025 business year, the goodwill of the Coatings division was assigned to disposal groups. The portion of goodwill attributable to the decorative paints business was derecognized upon closing of the transaction on October 1, 2025. For the remaining portion, an impairment test was performed in the third quarter of 2025 in connection with the announced transaction with Carlyle, prior to the reclassification into the disposal group. This test was based on fair value less costs of disposal (Level 2 fair value measurement).

As of January 1, 2025, the Catalysts division within the Surface Technologies segment was dissolved. It previously comprised the cash-generating units Battery Materials and Catalysts excluding Battery Materials. The battery materials business has since been operated as a stand-alone division with its corresponding cash-generating unit remaining unchanged. The chemical and refinery catalysts business, formerly part of the Catalysts excluding Battery Materials unit, was reassigned to the Performance Chemicals division and its corresponding cash-generating unit within the Industrial Solutions segment. Upon the transfer of the chemical and refinery catalysts business, the perpetual growth rate applied to the Performance Chemicals division was adjusted from $2.0\%$ in the previous year to $1.0\%$ in 2025. The remaining business of the former cash-generating unit Catalysts excluding Battery Materials is continued as an independent division named Environmental Catalyst and Metal Solutions (ECMS) within the Surface Technologies segment. The goodwill of the Catalysts excluding Battery Materials unit was allocated to the two receiving units proportionate to their respective fair values.

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

For the impairment test of the Battery Materials cash-generating unit, the recoverable amount was determined in 2024 and 2025 based on fair value less costs of disposal. Due to the parameters applied, this represents a Level 3 fair value measurement. This amount exceeded the unit's value in use. The detailed planning period covered 10 years to adequately reflect expected market developments. Demand for electric vehicles and the related battery materials is expected to be delayed over the coming years; however, medium-term demand for battery materials is projected to increase.

The ongoing transformation of the automotive industry is expected to have a substantial impact on the emissions catalysts business, which is allocated to the ECMS cash-generating unit. The transition from combustion engines to electromobility will lead to a continuous medium- to long-term decline in demand. However, as the pace of electrification in Europe and North America has been slower than previously anticipated, a delayed decline is projected compared with the prior year, resulting in adjusted planning assumptions. In this context, the perpetual growth rate has been adjusted from -4.7% in the previous year to -2.4% in 2025. At the same time, due to stricter environmental regulations, demand for catalysts is expected to remain stable over the detailed planning period.

As a result of geopolitical conflicts, increased intra-year volatility in natural gas and raw material prices is anticipated. Despite this, average prices for natural gas are projected to decline slightly over the detailed planning period. For other raw materials, a modest short-term decrease is anticipated, followed by an increase in prices toward the end of the detailed planning period. These trends, together with broader macroeconomic developments, such as easing inflation in certain industrialized economies, are reflected in future business expectations.

The perpetual growth rate for the cash-generating unit Agricultural Solutions in the corresponding segment was reduced from 2.0% in the previous year to 1.4% in 2025, reflecting adjusted expectations.

BASF Report 2025
Notes | 359

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Combined Management's Report

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Further Information

Goodwill of cash-generating units or groups of cash-generating units

Million €	2025			2024
Cash-generating unit or group of cash-generating units	Goodwill	Weighted cost of capital after taxes	Growth ratea	Goodwill	Weighted cost of capital after taxes	Growth ratea
Agricultural Solutions division	3,116	6.74%	1.40%	3,341	6.30%	2.00%
Environmental Catalyst and Metal Solutions division	751	7.84%	-2.40%	747	7.57%	-4.70%
Battery Materials division	302	7.85%	2.00%	330	7.57%	2.00%
Care Chemicals division	631	6.68%	2.00%	677	6.64%	2.00%
Coatings division	-	-	-	723	7.57%	2.00%
Performance Chemicals division	847	6.50%	1.00%	946	6.84%	2.00%
Petrochemicals division	177	6.23%	2.00%	200	7.08%	2.00%
Other cash-generating units	729	5.96%	0.00%	757	6.64%	0.00%
		-6.77%	-2.00%		-7.08%	-2.00%
Goodwill as of December 31	6,553			7,721

a Growth rates used in impairment tests to determine terminal values in accordance with IAS 36

The annual impairment tests of the 14 cash-generating units or groups of cash-generating units were performed, with the exception of the units in the Coatings division, as of December 31, 2025. The calculation also takes into account capital structure and the beta factor of the respective peer group as well as the average tax rate of each cash-generating unit. Impairment tests were performed on the units assuming a weighted average cost of capital rate after taxes of between 5.96% and 7.85% (previous year: between 6.30% and 7.57%). This corresponds to a weighted average cost of capital rate before taxes of between 7.26% and 11.68% (previous year: between 7.74% and 10.19%).

After determining the recoverable amounts of the cash-generating units, an analysis was performed to assess whether possible changes in key assumptions could cause the carrying amount of any unit to exceed its recoverable amount. For all units except the Petrochemicals division, which is part of the Chemicals segment, such changes would not result in carrying amounts exceeding their respective recoverable amounts.

For the annual impairment test of the goodwill of the Petrochemicals division, a post-tax weighted average cost of capital of 6.23% (prior year: 7.08%) and an EBITDA margin for the final year of the detailed planning period of 11.23% (prior year: 12.19%) were applied to determine the terminal value. The recoverable amount of this unit exceeded its carrying amount by €2,802 million. The recoverable amount would equal the unit's carrying amount if the EBITDA margin of the final detailed planning year used to determine the terminal value were reduced by 1.41 percentage points.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

14.2 Explanation of property, plant and equipment

The weighted average depreciation periods were as follows:

Weighted average depreciation in years

	2025	2024
Buildings and structural installations	19	18
Machinery and technical equipment	12	10
Miscellaneous equipment and fixtures	6	7

The following table shows the development of property, plant and equipment including right-of-use assets recognized by BASF as lessee (for more information on leases, see Note 15 from page 364 onward).

Development of property, plant and equipment including right-of-use assets arising from leases in 2025

Million €	Land	Right-of-use land	Buildings	Right-of-use buildings	Machinery and technical equipment	Right-of-use machinery and technical equipment	Miscellaneous equipment and fixtures	Right-of-use miscellaneous equipment and fixtures	Advance payments and construction in progress	Total
Cost
As of January 1, 2025	883	720	12,753	1,207	51,849	834	5,461	1,208	9,712	84,627
Changes in the scope of consolidation	-6	-	-31	7	-121	-	-9	-4	-24	-187
Additions	2	44	304	60	1,414	178	211	195	2,153	4,562
Additions from acquisitions	15	-	15	-	52	-	3	3	14	103
Disposals	-9	-2	-82	-67	-1,670	-39	-239	-164	-88	-2,360
Transfers	7	-	1,350	2	4,088	-	214	-	-5,620	42
Transfers to disposal groups	-104	-36	-741	-71	-1,283	-1	-309	-50	-146	-2,740
Currency effects	-49	-47	-550	-57	-2,315	-62	-237	-49	-642	-4,009
As of December 31, 2025	740	679	13,018	1,082	52,015	909	5,096	1,140	5,360	80,039
Accumulated depreciation
As of January 1, 2025	52	179	8,194	632	42,546	544	4,331	664	288	57,430
Changes in the scope of consolidation	-	-	-10	4	-61	-	-5	-2	-	-74
Additions	1	21	416	122	2,385	134	340	189	77	3,687
of which impairments	-	-	20	8	248	39	9	5	75	405
Disposals	-1	-2	-78	-58	-1,659	-38	-234	-151	-58	-2,279
Transfers	-	-	24	2	7	-	-	-	-23	10
Transfers to disposal groups	-2	-12	-449	-39	-923	-1	-246	-26	-1	-1,699
Currency effects	-3	-12	-315	-32	-1,828	-40	-181	-27	-2	-2,440
As of December 31, 2025	47	174	7,783	631	40,468	599	4,005	647	281	54,634
Net carrying amount as of December 31, 2025	694	505	5,235	451	11,547	310	1,092	493	5,079	25,405

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Additions to property, plant and equipment arising from investment projects (excluding leases) amounted to €4,085 million in 2025 (previous year: €6,078 million). Material investments included the development of infrastructure and technical equipment at the new Verbund site in Zhanjiang, China, as well as modification and capacity expansion of the MDI plant in Geismar, Louisiana. Further investments included construction of the menthol and linalool plants and modification of the acid chloride and chloroformate plant in Ludwigshafen as well as various modernization and expansion projects at the site in Antwerp, Belgium.

Government grants for funding investment measures reduced asset additions by €78 million (previous year: €73 million).

In 2025, accumulated depreciation included impairments in the amount of €414 million (previous year: €694 million) and reversals of impairments in the amount of €9 million (previous year: €5 million).

A full impairment of €155 million for a plant at a production site in North America was recognized in the Chemicals segment. The impairment was due to a disadvantageous cost position globally as well as reduced product price expectations. The impairment affected all of the fixed asset classes. Further impairments of €33 million were recognized for technical equipment at the production site in Ludwigshafen in connection with plant closures. The impairments affected in particular the segments Chemicals, Materials and Nutrition & Care. Furthermore, impairments were recognized for buildings, machinery and technical equipment as well as miscellaneous equipment and fixtures at two sites in Asia. Due to cessation of the production of certain mobile emissions catalysts, a plant with a carrying amount of €33 million in the Surface Technologies segment was fully written off. A further full impairment of €20 million was recognized in the Industrial Solutions segment in response to increasingly weaker demand.

Impairments to construction in progress in the amount of €34 million related to discontinued investment projects.

Transfers comprised mainly the reclassification of operation-ready assets from construction in progress to other asset categories.

Transfers to disposal groups related to the Brazilian decorative paints business divested as of October 1 and the discontinued coatings business.

Currency effects reduced property, plant and equipment by €1,569 million and resulted primarily from devaluation of the U.S. dollar and the Chinese renminbi against the euro.

BASF Report 2025
Notes | 362

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Development of property, plant and equipment including right-of-use assets arising from leases in 2024

Million €	Land	Right-of-use land	Buildings	Right-of-use buildings	Machinery and technical equipment	Right-of-use machinery and technical equipment	Miscellaneous equipment and fixtures	Right-of-use miscellaneous equipment and fixtures	Advance payments and construction in progress	Total
Cost
As of January 1, 2024	878	695	12,136	1,129	49,184	759	5,291	1,112	6,701	77,884
Changes in the scope of consolidation	-	-	-	-	1	-	-	-	-	2
Additions	14	23	166	125	771	72	213	208	4,914	6,506
Additions from acquisitions	-	7	40	-	137	1	4	-	-	188
Disposals	-7	-22	-104	-64	-510	-13	-276	-121	-62	-1,180
Transfers	2	-	410	-	1,505	-	163	-1	-2,072	7
Transfers to disposal groups	-11	-1	-54	-	-111	-3	-12	-	-3	-195
Currency effects	7	18	160	17	873	19	80	9	234	1,416
As of December 31, 2024	883	720	12,753	1,207	51,849	834	5,461	1,208	9,712	84,627
Accumulated depreciation
As of January 1, 2024	49	173	7,665	544	39,936	453	4,138	586	260	53,804
Changes in the scope of consolidation	-	-	-	-	1	-	-	-	-	1
Additions	2	24	547	127	2,504	95	381	191	107	3,978
of which impairments	1	2	162	3	388	1	26	-	108	689
Disposals	-	-22	-98	-47	-499	-12	-249	-115	-60	-1,103
Transfers	-	-	4	-	6	-	7	-1	-19	-3
Transfers to disposal groups	-	-	-25	-	-90	-2	-10	-	-	-127
Currency effects	2	4	102	7	688	10	63	4	-	879
As of December 31, 2024	52	179	8,194	632	42,546	544	4,331	664	288	57,430
Net carrying amount as of December 31, 2024	832	541	4,558	575	9,303	290	1,131	544	9,424	27,197

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

15 Leases

Accounting policies

A lease is an agreement that conveys the right to control the use of an identified asset for a defined period of time in return for a payment.

Leases can be embedded within other contracts. If separation is required under IFRS, the embedded lease is recorded separately from its host contract and each component of the contract is accounted and measured in accordance with the applicable regulations.

Leases in which BASF is a lessee mainly relate to real estate, transportation and technical equipment.

As lessee, BASF accounts for all leases, recognizing right-of-use assets for leased assets and liabilities for lease agreements subject to the following principles:

BASF exercises the exemption for lease agreements with a maximum term of 12 months from the date of provision and low-value assets. Low-value assets are generally defined as leased assets worth a maximum of €5,000.
Lease liabilities are measured at the present value of the remaining lease payments, taking into account the incremental borrowing rate.
As a general rule, BASF separates non-lease components, such as services, from lease payments.
A right-of-use asset is generally recognized at the same amount as the lease liability. Differences may arise from the lease payments made prior to the provision of the leased asset, less any lease incentives received.
After capitalization, the right-of-use asset is generally depreciated over the lease term using the straight-line method.
A number of leases, particularly for real estate and barges, include extension and termination options. Extension and termination options are taken into account on recognition of the lease liability only if BASF is reasonably certain that these options will be exercised in the future. When contract terms are being determined, consideration is given to all facts and circumstances that offer an economic incentive for exercising extension options or not exercising termination options. Changes in lease terms arising from the exercise of an extension option or non-exercise of a termination option are only considered if sufficient certainty exists. Estimates and expectations which are asserted at the commencement date of the lease liability and the right-of-use asset and pertain to future payments not yet determined on the date of provision are assessed continuously during the lease term. If subsequently improved or changed knowledge influences the expected payment profile over time, the lease liability is remeasured.
If an existing lease contract is modified, the lease liability and right-of-use asset must be remeasured, provided the modification changes the payment profile (pursuant to the interest and principal plan) or the scope (either quantitatively or time-related) of use of the asset.

BASF Report 2025
Notes | 364

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Explanation of leases

BASF as lessee

Lease liabilities

Million €	December 31, 2025			December 31, 2024
	Lease liabilities	Interest portion	Future lease payments	Lease liabilities	Interest portion	Future lease payments
Following year 1	358	53	412	340	53	393
Following year 2	257	43	300	253	44	297
Following year 3	187	35	221	183	39	222
Following year 4	130	29	159	143	32	175
Following year 5	97	25	122	107	27	134
Over 5 years	580	156	736	638	174	812
Total	1,608	341	1,950	1,664	369	2,033

As of December 31, 2025, the lease liabilities contained €55 million lease liabilities of the discontinued coatings operations.

Expenses and income in the statement of income from leases for BASF as lessee

Million €	2025	2024
Interest expenses for lease liabilities	-61	-66
Expenses for variable lease payments not included in the measurement of lease liabilities	-8	-8
Income from sublease agreements	5	4
Expenses for short-term leases	-150	-157
Expenses for leases of low-value assets	-27	-36
Total	-241	-263

There were no significant sale and leaseback transactions in 2025 or 2024.

BASF as lessor

BASF acts as a lessor for finance leases to a minor extent only. Receivables on finance leases were €29 million in 2025 (previous year: €31 million). The leased assets pertained primarily to buildings and production facilities.

Claims arising from operating leases amounted to €218 million in 2025 (previous year: €243 million). As in the previous year, there were no material operating leases for property, plant and equipment.

Future lease payments to BASF from operating lease contracts

Million €	December 31, 2025	December 31, 2024
Following year 1	44	46
Following year 2	35	38
Following year 3	34	37
Following year 4	33	36
Following year 5	31	36
Over 5 years	41	50
Total	218	243

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Income from leases for BASF as lessor

Million €	2025	2024
Income from finance leases	1	2
of which financial income from net investments	1	2
Income from operating leases	45	46
Total	46	48

16 Inventories

Accounting policies

Inventories are measured at acquisition cost or cost of conversion based on the weighted average method. If the sales products' market price or fair value based on net realizable value is lower, the sales products are written down to this lower value. The net realizable value is the estimated price in the ordinary course of business less the estimated costs of completion and the estimated selling costs. Inventories may be impaired if the prices of the sales products decline, or in cases of a high rate of days sales of inventory (DSI). Write-downs on inventories are reversed if the reasons for them no longer apply.

In addition to direct costs, cost of conversion includes an appropriate allocation of production overhead costs based on normal utilization rates of the production plants, provided they are related to the production process. Pensions, social services and voluntary social benefits are also included, as well as allocations for administrative costs, provided they relate to the production. Borrowing costs are not included in cost of conversion.

Inventories held for the purpose of precious metals trading are measured at fair value less costs to sell, and are recognized in the precious metal trading item under miscellaneous current assets. All changes in value are immediately recognized in the statement of income. The fair values of precious metal trading inventories are primarily classified as Level 1 fair values.

Explanation of inventories

Inventories

Million €	December 31, 2025	December 31, 2024
Raw materials and factory supplies	4,201	4,602
Work in progress, finished goods and merchandise	7,857	8,980
Advance payments and services in progress	110	99
Inventories	12,168	13,681

Work in progress, finished goods and merchandise are combined into one item due to production conditions in the chemical industry. Services in progress mainly relate to services not invoiced as of the balance sheet date.

Cost of sales included inventories recognized as an expense amounting to €31,384 million in 2025, and €32,124 million in 2024.

Write-downs on inventory were recognized in the amount of €9 million in 2025, whereas reversals of write-downs on inventory in the amount of €54 million were recognized in 2024. Climate-related risks, as described in Note 1.4 from page 314 onward, did not result in any additional write-downs in either year.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

17 Receivables and miscellaneous assets

Other receivables and miscellaneous assets

Million €	December 31, 2025		December 31, 2024
	Noncurrent	Current	Noncurrent	Current
Loans and interest receivables	20	138	52	119
Derivatives with positive fair values	347	207	395	555
Receivables from finance leases	27	2	29	2
Receivables from capital equipment of nonconsolidated subsidiaries	42	80	42	148
Receivables from bank acceptance drafts	-	260	-	234
Other	129	417	321	271
Other receivables and assets that qualify as financial instruments	565	1,104	839	1,329
Prepaid expenses	134	207	68	264
Defined benefit assets	1,824	-	1,383	-
Other tax receivables	41	563	51	501
Employee receivables	-	24	-	23
Precious metal trading items	-	1,327	-	702
Emission rights	-	138	-	84
Other	138	399	25	353
Other receivables and assets that do not qualify as financial instruments	2,137	2,658	1,527	1,927
Other receivables and miscellaneous assets	2,702	3,762	2,366	3,256

The increase in current loan and interest receivables mainly concerned receivables from joint venture partners. This was partially offset by reclassifications to the disposal group.

For noncurrent and current derivatives with positive fair values, the change was mainly due to a decline in the fair values for long-term interest rate currency swaps and for commodity derivatives on precious metals.

Bank acceptance drafts are used as a means of payment in China. Bank acceptance drafts are issued at a discount to their nominal value. They can be held to maturity, traded or redeemed prematurely at a discount. If BASF discounts a bank acceptance draft with recourse, a liability toward the credit institution is recognized in the amount of the payment received.

Noncurrent other receivables that qualify as financial instruments mainly include a receivable from the retrospective initial fund loan to the BASF Pensionskasse VVaG (pension fund) as well as receivables from customer financing in North America. Current other receivables that qualify as financial instruments primarily consist of call deposits with banks, receivables from suppliers as well as receivables from customer financing. In 2025, the decline was mainly due to reclassifications to the disposal group.

Prepaid expenses in 2025 mainly included prepayments of €27 million for operating activities compared with €39 million in 2024, as well as €100 million in prepaid insurance premiums in 2025 compared with €78 million in 2024. Prepayments for license costs decreased from €72 million in 2024 to €17 million in 2025.

As in the previous year, defined benefit assets were recognized in 2025 mainly at Group companies in Germany, Switzerland and the United Kingdom. As in the previous year, pension plans in Switzerland were subject to an asset ceiling in 2025. In the reporting year, BASF Pensionskasse VVaG in Germany was also subject to an asset ceiling for the first time since 2010 (for more information, see Note 21 from page 376 onward).

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The change in current other tax receivables was mainly attributable to the build-up of a refundable input tax surplus from investment promotion programs in China.

Precious metal trading items primarily comprise physical items, precious metal accounts as well as long positions in precious metals, most of which were hedged through forward sales or derivatives. The carrying amount of the precious metals trading portfolio held for trading purposes was €1,327 million as of December 31, 2025 (previous year: €702 million).

Emission rights granted free of charge by the German Emissions Trading Authority (DEHSt) or a comparable authority in other countries are recognized in the balance sheet at a value of zero. Certificates purchased on the market are capitalized at cost and reported as other assets. Emission rights purchased on the market are subsequently measured at amortized cost. If the fair value is lower than the carrying amount on the balance sheet date, the emission rights are impaired.

The rise in current other receivables and assets that do not qualify as financial instruments resulted primarily from higher advance payments made as well as from assets arising from rights of return granted in the Agricultural Solutions division.

The table below presents the gross values and credit risks for trade accounts receivable other than trade accounts receivable measured at fair value through profit or loss, and other receivables as of December 31, 2025, and in the previous year.

Gross carrying amounts of receivables (financial instruments)

Million €	Equivalence to external ratinga	Accounts receivable, trade		Other receivablesb
		Stage 2	Stage 3	Stage 1	Stage 2	Stage 3
High/medium credit rating	from AAA to BBB-	4,649	31	430	0	107
Low credit rating	from BB- to D	3,375	291	542	29	68
Gross carrying amount as of December 31, 2025		8,024	322	972	29	175
High/medium credit rating	from AAA to BBB-	6,258	23	532	1	113
Low credit rating	from BB- to D	3,808	259	543	33	47
Gross carrying amount as of December 31, 2024		10,066	282	1,075	33	161

a Standard & Poor's rating
b Other receivables (financial instruments) subject to the impairment model according to IFRS 9

There are currently no significant credit risks (or a concentration thereof) associated with other financial instruments.

Valuation allowances on receivables (financial instruments) 2025

Million €	As of Jan. 1, 2025	Additions	Releases	Reclassifica-tion between stages	Translation adjustment	Reclassifica-tion to disposal group	As of Dec. 31, 2025
Accounts receivable, trade	289	118	89	-	-6	-11	301
of which stage 2	43	32	32	-	-2	-3	38
stage 3	246	86	57	-	-4	-8	263
Other receivables	141	12	11	-	-3	-	139
of which stage 1	8	5	4	-	-	-	9
stage 2	-	-	-	-	-	-	-
stage 3	133	7	7	-	-3	-	130
Total	430	130	100	-	-9	-11	440

a Standard & Poor's rating
b Other receivables (financial instruments) subject to the impairment model according to IFRS 9

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Valuation allowances on receivables (financial instruments) 2024

Million €	As of Jan. 1, 2024	Additions	Releases	Reclassification between stages	Translation adjustment	As of Dec. 31, 2024
Accounts receivable, trade	269	129	-97	-1	-12	288
of which stage 2	38	42	-37	–	–	43
stage 3	231	87	-60	-1	-12	245
Other receivables	157	18	-34	–	1	142
of which stage 1	7	4	-2	–	–	9
stage 2	–	–	–	–	–	–
stage 3	150	14	-32	–	1	133
Total	426	147	-131	-1	-11	430

Payment terms are generally agreed upon individually with customers and, as a rule, are within 90 days. The Agricultural Solutions division is an exception, where longer payment terms are common. In 2025, impairments for trade accounts receivable were added in the amount of €118 million (previous year: €129 million) and released in the amount of €89 million (previous year: €97 million).

In 2025, valuation allowances of other receivables that qualify as financial instruments were recognized in the amount of €12 million and released in the amount of €11 million. In the previous year, valuation allowances of €18 million were recognized and valuation allowances of €34 million were released (for more information, see Note 25 from page 389 onward).

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

18 Capital, reserves and retained earnings

Subscribed capital / share capital

BASF SE has only issued fully paid-up registered shares with no par value. There are no preferential rights or other restrictions.

The subscribed capital of BASF SE as of December 31, 2025, and December 31, 2024, was €1,142 million, divided into 892,522,164 qualifying no par value shares. As of December 31, 2025, 884,325,217 shares (previous year: 892,522,164) were entitled to dividends, and 8,196,947 were treasury shares (previous year: 0) acquired in 2025 as part of the share buyback program.

Share buyback / treasury shares

By way of a resolution of the Annual Shareholders' Meeting of April 29, 2022, the Board of Executive Directors was authorized to buy back shares until April 28, 2027, in accordance with section 71(1) no. 8 of the German Stock Corporation Act (AktG).

The buyback may not exceed 10% of the company's share capital at the time the resolution was passed and can take place via the stock exchange, a public purchase offer addressed to all shareholders, or a public invitation to the shareholders to submit sales offers.

The Board of Executive Directors is authorized to redeem the shares bought back without a further resolution of the Annual Shareholders' Meeting and to reduce the share capital by the proportion of the share capital accounted for by the redeemed shares. The Board of Executive Directors can also redeem the shares without reducing the share capital so that the proportion of the other shares in relation to the share capital is increased through the redemption. In that event, the Board of Executive Directors is authorized to adjust the number of shares in the Statutes.

On October 28, 2025, the Board of Executive Directors announced a share buyback program. The program has a volume of up to €1.5 billion. The buyback began on November 3, 2025, and is scheduled to be completed by the end of June 2026.

In the 2025 business year, under its share buyback authorization, BASF acquired 8,196,947 shares, or 0.92% of its share capital, at an average price of €43.27 per share for the purpose of cancellation. In total, BASF spent €355 million on share buybacks in 2025. This amount was taken from other retained earnings. As of the balance sheet date, BASF held a total of 8,196,947 treasury shares.

In the 2024 business year, the share buyback authorization was not utilized.

Authorized capital

In accordance with the resolution of the Annual Shareholders' Meeting of April 25, 2024, the Board of Executive Directors was authorized, with the consent of the Supervisory Board, to increase the company's share capital by a total of up to €300 million on a one-off basis or in portions on a number of occasions until April 24, 2029, by issuing new registered shares with no par value against contributions in cash or in kind, and thereby to also exclude shareholders' statutory subscription right in certain cases (Authorized Capital 2024).

The total shares issued on the basis of the above authorization with the exclusion of the shareholders' subscription right in the case of capital increases in return for contributions in cash or in kind must not exceed 10% of the share capital at the time that this authorization comes into effect or – if this value is lower – at the time of its exercise.

BASF Report 2025
Notes | 370

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Shares issued during the term of this authorization on the basis of other capital measures excluding the subscription right must be credited against the aforementioned ceiling of 10%.

This authorization was not exercised in the 2025 or 2024 business years.

Conditional capital

At the Annual Shareholders’ Meeting on April 29, 2022, the Board of Executive Directors was authorized, with the approval of the Supervisory Board, up to April 28, 2027, on a one-off basis or in portions on more than one occasion to issue bearer or registered convertible bonds and/or bonds with warrants or a combination of these instruments with or without maturity limitations with a total nominal value of up to €10 billion and to grant or impose holders and/or creditors of these debt instruments conversion or option rights for up to 91,847,800 registered shares in the company with a pro rata amount of share capital of up to €117,565,184 subject to the respective terms and conditions of the debt instruments. The debt instruments can be issued in exchange for contributions in cash, but also for contributions in kind, particularly shareholdings in other companies.

To hedge the subscription right to conversion and option rights issued under the authorization, the share capital was increased conditionally by up to €117,565,184 with the option of issuing a maximum of 91,847,800 new registered BASF shares. The conditional capital increase shall only be carried out to the extent to which holders of convertible bonds or warrants attached to bonds with warrants issued by the company or one of its subsidiaries up to April 28, 2027, under the authorization granted to the Board of Executive Directors, exercise their conversion or option rights and/or fulfill their conversion or option obligations, and provided that no other forms of fulfillment of delivery are used. The new BASF shares shall be issued at the conversion or option prices determined in each case in the terms and conditions of the debt instruments and/or the warrants in accordance with the above-mentioned authorization. The new BASF shares issued under this provision shall participate in profits from the beginning of the financial year in which they are issued.

This authorization was also not used in the 2025 or 2024 business years.

Capital reserves

Capital reserves include effects from BASF’s share program, premiums from capital increases and consideration for warrants and negative goodwill from the capital consolidation resulting from acquisitions of subsidiaries in exchange for the issue of BASF SE shares at par value. In 2025, the valuation of BASF shares in connection with the BASF “plus” share program led to a decline in capital reserves of €8 million (previous year: €0 million).

Retained earnings

Retained earnings include earnings generated in the past and in 2025 by companies included in the Consolidated Financial Statements as well as reclassifications from non-recyclable items in other comprehensive income.

Retained earnings

Million €	December 31, 2025	December 31, 2024
Legal reserves	1,110	1,088
Other retained earnings	28,821	29,795
Retained earnings	29,931	30,883

Legal reserves rose by €22 million in both 2025 and 2024 due to reclassifications from other retained earnings.

BASF Report 2025
Notes | 371

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Furthermore, in 2025, €180 million from the measurement of securities at fair value through other comprehensive income (previous year: €0 million) as well as €15 million from the remeasurement of defined benefit plans (previous year: €90 million) were allocated to retained earnings.

Payment of dividends

In accordance with the resolution of the Annual Shareholders' Meeting of May 2, 2025, BASF SE paid a dividend of €2.25 (previous year: €3.40) per qualifying share from the retained profit of the 2024 business year. With 892,522,164 (previous year: 892,522,164) qualifying shares, this represented total dividends of €2,008 million (previous year: €3,035 million). The remaining €696 million (previous year: €4,399 million) in retained profits was allocated to retained earnings.

19 Other comprehensive income

Accounting policies

The expenses and income shown in other comprehensive income are divided into two categories: items that will be recognized in the income statement in the future (known as "recycling") and items that will not be reclassified to the income statement in the future. The first category includes gains and losses from currency translation, the measurement of certain securities classified as debt instruments, and changes in the fair value of derivatives held to hedge future cash flows. Items that will not be reclassified to the income statement at a future date include effects from the remeasurement of defined benefit plans.

Remeasurement of defined benefit plans

In 2025, the performance of the defined benefit plans resulted in an increase in other comprehensive income of €563 million (including taxes of €316 million), of which €22 million related to investments accounted for using the equity method. In addition, €15 million was reclassified to retained earnings.

In 2024, changes in the value of defined benefit pension plans resulted in an increase in other comprehensive income in the amount of €1,477 million (including taxes of €273 million), of which €23 million was attributable to investments accounted for using the equity method. In addition, €90 million was reclassified to retained earnings in connection with the sale of the E&P business of Wintershall Dea GmbH, Kassel, Germany, which is accounted for using the equity method, to Harbour Energy plc, London, United Kingdom. Furthermore, the change in BASF's share of the assets of the BASF Pensionskasse VVaG, a multi-employer plan, resulted in a decrease of €98 million in other comprehensive income.

Currency translation

Differences resulting from currency translation reduced equity by a total of €2,442 million in 2025, of which €456 million was related to shareholdings accounted for using the equity method. In addition, accumulated currency losses of €33 million relating to the divestiture of two fully consolidated companies and one equity-accounted company were reclassified to the income statement.

In the previous year, equity was increased by €782 million, of which €215 million related to investments accounted for using the equity method.

In 2025, the differences resulted mainly from the depreciation of the U.S. dollar relative to the euro. In 2024, the differences were mainly due to the appreciation of the U.S. dollar relative to the euro.

Measurement of securities at fair value

Measurement of securities at fair value resulted in an increase in other comprehensive income of €178 million in 2025 (previous year: decrease of €1 million). The increase in 2025 resulted primarily from

BASF Report 2025
Notes | 372

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

the reclassification of €180 million in impairments on equity instruments recognized in equity at Wintershall Dea GmbH into retained earnings. The decrease of €1 million in 2024 resulted from the valuation of debt instruments at fair value.

Cash flow hedges

Changes in the fair value of derivatives designated in hedging relationships (cash flow hedges) adjusted for deferred taxes in the amount of €24 million reduced equity by a total of €129 million, including €147 million for hedging of future cash flows at shareholdings accounted for using the equity method. In addition, realized losses totaling €343 million from the hedging of a foreign currency loan and from the hedging of commercial paper were reclassified to the income statement and recognized in financial result. Furthermore, €5 million was removed from other comprehensive income not affecting profit and loss and recorded as acquisition cost of property, plant and equipment and of inventories, for the procurement of which a hedge relationship existed.

In the previous year, changes in fair value adjusted for deferred taxes in the amount of -€7 million decreased equity by a total of €50 million; this included €100 million for the hedging of future cash flows at shareholdings accounted for using the equity method. In addition, realized gains in the amount of €101 million were recognized in profit and loss. Furthermore €38 million related to realized losses from the hedging of natural gas purchases were reclassified without affecting profit and loss.

20 Liabilities

Financial indebtedness

Million €	Currency	Nominal value (million, currency of issue)	Effective interest rate	Carrying amounts based on effective interest method
				Dec. 31, 2025	Dec. 31, 2024
BASF SE
1.750% Bond 2017/2025	GBP	300	1.87%	-	362
0.875% Bond 2018/2025	EUR	750	0.97%	-	750
3.675% Bond 2013/2025	NOK	1,450	3.70%	-	123
0.750% Bond 2022/2026	EUR	1,000	0.82%	1,000	999
0.250% Bond 2020/2027	EUR	1,000	0.32%	999	998
0.875% Bond 2017/2027	EUR	1,000	1.04%	997	995
3.125% Bond 2022/2028	EUR	750	3.27%	747	747
2.670% Bond 2017/2029	NOK	1,600	2.69%	135	136
0.875% Bond 2019/2029	EUR	250	1.00%	249	249
4.000% Bond 2023/2029	EUR	500	4.08%	499	499
1.500% Bond 2018/2030	EUR	500	1.63%	497	497
1.500% Bond 2016/2031	EUR	200	1.58%	199	199
1.500% Bond 2022/2031	EUR	1,000	1.53%	998	998
0.875% Bond 2016/2031	EUR	500	1.01%	496	496
2.370% Bond 2016/2031	HKD	1,300	2.37%	142	161
4.250% Bond 2023/2032	EUR	500	4.30%	499	498
3.750% Bond 2022/2032	EUR	750	3.85%	746	745
1.450% Bond 2017/2032	EUR	300	1.57%	298	298
3.000% Bond 2013/2033	EUR	500	3.15%	495	495
2.875% Bond 2013/2033	EUR	200	2.96%	199	199
4.000% Bond 2018/2033	AUD	160	4.24%	90	94
4.500% Bond 2023/2035	EUR	500	4.54%	499	498
1.625% Bond 2017/2037	EUR	750	1.73%	741	741
3.250% Bond 2013/2043	EUR	200	3.27%	200	200
1.025% Bond 2018/2048	JPY	10,000	1.03%	54	61

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Financial indebtedness

Million €	Currency	Nominal value (million, currency of issue)	Effective interest rate	Carrying amounts based on effective interest method
				Dec. 31, 2025	Dec. 31, 2024
3.890%	U.S. private placement series A 2013/2025	USD	250	3.92%	-	241
4.090%	U.S. private placement series B 2013/2028	USD	700	4.11%	595	673
5.520%	U.S. private placement 2024/2030	USD	350	5.64%	297	336
5.670%	U.S. private placement 2024/2033	USD	250	5.78%	212	240
5.710%	U.S. private placement 2024/2034	USD	400	5.82%	340	384
4.430%	U.S. private placement series C 2013/2034	USD	300	4.45%	255	288
5.810%	U.S. private placement 2024/2036	USD	200	5.82%	170	192
5.910%	U.S. private placement 2024/2039	USD	300	6.01%	255	288
BASF Finance Europe N.V.
3.625%	Bond 2018/2025	USD	200	3.69%	-	193
0.750%	Bond 2016/2026	EUR	500	0.88%	499	499
BASF Ireland DAC
2.390%	Panda Bond 2024/2027	CNY	2,000	2.39%	243	263
2.030%	Panda Bond 2025/2028	CNY	2,000	2.03%	243	-
2.280%	Panda Bond 2025/2030	CNY	1,000	2.28%	121	-
BASF Corporation
6.950%	Bond 1998/2028	USD	120	6.95%	104	118
Bonds and other liabilities to the capital market					14,114	15,751
Liabilities to credit institutions					6,975	6,011
Financial indebtedness					21,088	21,762

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Breakdown of financial indebtedness by currency

Million €	December 31, 2025	December 31, 2024
Euro	12,869	14,228
Chinese renminbi	4,815	2,515
U.S. dollar	2,247	3,281
Polish zloty	237	–
Japanese yen	233	274
Hong Kong dollar	142	161
Norwegian krone	135	258
Australian dollar	90	94
South African rand	44	102
Indonesian rupiah	37	67
Brazilian real	33	45
Pound sterling	–	362
Other currencies	207	373
Total	21,088	21,762

Maturities of financial indebtedness

Million €	December 31, 2025	December 31, 2024
Following year 1	2,608	2,639
Following year 2	2,645	2,723
Following year 3	2,102	2,662
Following year 4	895	1,875
Following year 5	1,885	982
Following year 6 and maturities beyond this year	10,954	10,880
Total	21,088	21,762

Liabilities to credit institutions

Liabilities to credit institutions increased from €6,011 million as of December 31, 2024, to €6,975 million as of December 31, 2025. The weighted average interest rate on loans amounted to 3.4% in 2025, compared with 3.9% in 2024.

In 2023, BASF Integrated Site (Guangdong) Co. Ltd., China, signed a 40 billion Chinese renminbi syndicated bank term loan facility with a maturity of 15 years for its Verbund site in Zhanjiang, and had utilized an amount of 34 billion Chinese renminbi (€4,190 million) as of December 31, 2025. As of December 31, 2024, utilization amounted to 17 billion Chinese renminbi (€2,130 million). When drawn, the interest rate is variable.

Unused credit lines

BASF SE had committed and unused credit lines, when drawn with variable interest rates, amounting to €6 billion as of December 31, 2025 (previous year: €6 billion).

BASF Report 2025
Notes | 375

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Other liabilities

Million €	December 31, 2025		December 31, 2024
	Noncurrent	Current	Noncurrent	Current
Derivatives with negative fair values	338	361	77	249
Liabilities from leases	1,212	342	1,323	340
Loan and interest liabilities	7	559	10	561
Advances received on future orders	-	638	-	727
Miscellaneous liabilities	47	608	46	934
Other liabilities that qualify as financial instruments	1,605	2,508	1,456	2,811
Liabilities related to social security	27	92	31	94
Employee liabilities	14	273	21	297
Liabilities from precious metal trading positions	-	59	-	15
Contract liabilities	95	21	108	30
Deferred income	143	50	109	46
Miscellaneous liabilities	18	402	19	422
Other liabilities that do not qualify as financial instruments	298	897	289	904
Other liabilities	1,903	3,405	1,744	3,714

Miscellaneous liabilities that qualify as financial instruments include, among others, liabilities arising from unpaid dividends and profit and loss transfer agreements and liabilities arising from cash-pooling accounts with nonconsolidated Group companies. The change resulted in particular from the payment of the out-of-court settlement of the multidistrict litigation proceedings in connection with AFFF products in the United States (for more information, see Note 23 from page 388 onward).

The majority of contract liabilities have terms of up to five years. Of the contract liabilities reported as of December 31, 2025, €28 million are expected to be recognized as revenue in 2026.

Carrying amounts of assets used to secure liabilities

Million €	December 31, 2025	December 31, 2024
To secure
liabilities to credit institutions	9	12
accounts payable, trade	3	6
other liabilities	262	54
Carrying amounts of assets used	275	71

Liabilities to credit institutions were secured primarily with registered land charges. Secured other liabilities relate primarily to derivatives with negative fair values that are secured with cash. This results in recognition of receivables under other receivables and miscellaneous assets.

21 Provisions for pensions and similar obligations

Economic and legal environment of the plans

In addition to state pension plans, most employees are granted company pension benefits from either defined contribution or defined benefit plans. Benefits generally depend on years of service, contributions or compensation, and take into consideration the legal framework of labor, tax and social security laws of the countries where the companies are located. To limit the risks of changing financial market conditions as well as demographic developments, employees have, for a number of years now, been almost exclusively offered defined contribution plans for future years of service.

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The Group Pension Committee monitors the risks of all pension plans of the Group with regard to the financing of pension commitments and the portfolio structure of existing plan assets. The organization, responsibilities, strategy, implementation and reporting requirements are documented for the units involved.

In some countries – especially in Germany, the United States, the United Kingdom and Switzerland – there are pension obligations subject to government supervision or similar legal restrictions. For example, there are minimum funding requirements to cover pension obligations, which are based on actuarial assumptions and differ from those pursuant to IAS 19. Furthermore, there are qualitative and quantitative restrictions on allocating plan assets to certain asset categories. This could result in annual fluctuations in employer contributions, financing measures and the assumption of obligations in favor of the pension funds to comply with regulatory requirements.

The obligations and the plan assets used to fund the obligations are exposed to demographic, legal and economic risks. Economic risks are primarily due to unforeseen developments on commodity and capital markets. They affect, for example, pension adjustments based on the level of inflation in Germany and in the United Kingdom, as well as the impact of discount rates on the amount of the defined benefit obligation.

The strategy of the BASF Group with regard to financing pension commitments takes into account country-specific supervisory and tax regulations.

In some countries, pension benefits were granted for which the employer has a subsidiary liability. Pension benefits in a number of countries include minimum interest guarantees to a limited extent. If the pension fund cannot generate the income needed to provide the minimum guarantee, this guarantee must be provided by the employer under the subsidiary liability. To the extent that recourse to the employer is unlikely based on the structure and execution of the pension benefits as well as the asset situation of the pension fund, these plans are treated as defined contribution plans.

Accounting policies

With regard to pensions and similar obligations, a distinction is made between defined benefit and defined contribution plans. In the case of defined contribution plans, current contributions are recognized as an expense.

In the case of defined benefit obligations, provisions for pensions are calculated on an actuarial basis in accordance with the projected unit credit method. Assumptions relating to the following valuation parameters, among others, are used: future developments in compensation, pensions and inflation, employee turnover and the life expectancy of beneficiaries. Actuarial reports are used to calculate the amount of pension provisions. Obligations are discounted based on the market yields on high-quality corporate fixed-rate bonds. Pension provisions are recognized as a net defined benefit liability if the discounted benefit obligation exceeds the plan assets used to cover it.

A plan asset surplus exists if a defined benefit plan's assets exceed the plan's obligations. IAS 19 requires the employer to test any such surplus for impairment. If no economic benefit (for example, reduced contributions or a refund) to the company is present, an asset ceiling must be reported.

Similar obligations, especially those arising from commitments by North American Group companies to pay the healthcare costs and life insurance premiums of retired staff and their dependents, are reported under provisions for similar obligations.

The assumptions used to ascertain the defined benefit obligation as of December 31 are used in the following year to determine the expenses for pension plans.

BASF Report 2025
Notes | 377

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Actuarial gains and losses from changes in estimates relating to the actuarial assumptions used to calculate defined benefit obligations, the difference between standardized and actual returns on plan assets, as well as the effects of the asset ceiling are recognized directly in equity as other comprehensive income.

The interest on the net defined benefit liability at the beginning of the year is recognized in the financial result. This is the difference between the interest cost of the defined benefit obligation and the standardized interest return on plan assets as well as the interest cost for the asset ceiling. Net interest expense of the respective fiscal year is based on the discount rate and the defined benefit obligation at the beginning of the year. The expected contribution payments and benefits paid over the course of the fiscal year are taken into account when determining net interest.

The standardized return on pension assets is determined by multiplying plan assets at the beginning of the year by the discount rate used for existing defined benefit obligations at the beginning of the year, taking into account benefits paid from plan assets and contributions to plan assets during the year.

Description of the defined benefit plans

The following section describes the typical plan structure in the individual countries. Different arrangements may exist, in particular due to the assumption of plans as part of acquisitions; however, these do not have any material impact on the description of plans in the individual countries.

Germany

For BASF SE and German Group companies, a basic level of benefits is provided by BASF Pensionskasse VVaG, a legally independent plan, which is financed by employer and employee contributions as well as the return on plan assets. BASF SE ensures the necessary contributions to adequately finance the benefits promised by BASF Pensionskasse VVaG. Some of the benefits financed via BASF Pensionskasse VVaG are subject to adjustments that must be borne by its member companies to the extent that these cannot be borne by BASF Pensionskasse VVaG due to the regulations imposed by the German supervisory authority. In 2004, the basic benefit plan was closed for newly hired employees at German BASF companies and replaced by a defined contribution plan. A new defined contribution plan was introduced as of July 1, 2021, for new hires in the German BASF companies. At BASF SE, occupational pension promises that exceed the basic level of benefits are financed under a contractual trust arrangement by BASF Pensionstreuhand e.V.; at German Group companies, these benefits are financed primarily via pension provisions. As of 2022, new employees receive a securities-based pension award while other employees are granted benefits primarily based on cash balance plans. Furthermore, employees are given the option of participating in various deferred compensation schemes.

United States

Employees are granted benefits based on defined contribution plans.

Effective 2010, the existing defined benefit plans were closed to further increases in benefits based on future years of service, and benefits earned in the past were frozen. There is no entitlement to pension adjustments to compensate for cost-of-living increases.

The legal and regulatory frameworks governing the plans are based on the U.S. Employee Retirement Income Security Act (ERISA), which requires the plan sponsor to ensure a minimum funding level. Any employer contributions necessary to meet the minimum funding level are based on the results of an actuarial valuation. Furthermore, there are unfunded pension plans that are not subject to ERISA requirements.

Additional similar obligations arise from plans that assume the healthcare costs and life insurance premiums of retired employees and their dependents. Such plans have been closed to new entrants since 2007. In addition, the amount of the benefits for such plans has been frozen.

BASF Report 2025
Notes | 378

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Switzerland

The employees of the BASF Group in Switzerland receive a company pension, which is financed through a pension fund by employer and employee contributions as well as the return on plan assets. The pension plans are accounted for as defined benefit plans, as the obligatory minimum pension guaranteed by law under the Swiss Pension Fund Act (BVG) is included in the scheme. All benefits vest immediately. According to government regulations, the employer is obligated to make contributions, so that the pension funds are able to grant the minimum benefits guaranteed by law. The pension funds are managed by boards, where employer and employees are equally represented, which steer and monitor the benefit plans and asset allocation.

United Kingdom

Employees are granted benefits based on a defined contribution plan.

The BASF Group also maintains defined benefit plans in the United Kingdom, which have been closed for further increases based on future years of service. Adjustments to compensate for increases in the cost of living until the beginning of retirement are legally required for beneficiaries of defined benefit plans.

The financing of the pension plans is determined by the provisions of the regulatory authority for pensions and the relevant social and labor law requirements. The defined benefit plans are administered by a trust company, whose Board of Trustees, according to the trustee agreement and law, represents the interests of the beneficiaries and ensures that the benefits can be paid in the future. The required funding is determined using technical valuations according to local regulations every three years.

Other countries

For Group companies in other countries, defined benefits are covered in some cases by pension provisions, but mainly by external insurance companies or pension funds.

Actuarial assumptions

The valuation of the pension obligations is based on the following key assumptions:

Actuarial assumptions

	Assumptions used to determine the defined benefit obligation as of December 31
	Germany		United States		Switzerland		United Kingdom
%	2025	2024	2025	2024	2025	2024	2025	2024
Discount rate	4.20	3.40	5.20	5.50	1.20	0.80	5.40	5.40
Projected pension increase	2.00	2.00	-	-	-	-	2.80	3.10

Assumptions used to determine expenses for pension benefits in the respective business year

	Germany		United States		Switzerland		United Kingdom
%	2025	2024	2025	2024	2025	2024	2025	2024
Discount rate	3.40	3.20	5.50	5.00	0.80	1.30	5.40	4.50
Projected pension increase	2.00	2.20	-	-	-	-	3.10	3.10

The discount rates for material pension obligations in Germany, the United States, Switzerland and the United Kingdom are mostly determined based on the standard Willis Towers Watson approach (e.g., WTW RATE:Link model). 2025 saw the refinement of the Willis Towers Watson RATE:Link model used to derive discount rates, which are used to determine pension obligations in Germany, the United States and the United Kingdom. For BASF, this refinement resulted in a €342 million reduction in obligations as of December 31, 2025, with the effect limited to pension plans in Germany.

BASF Report 2025
Notes | 379

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The majority of domestic pension obligations are subject to legally required regular adjustments to current pension payments based on interim inflation developments. The last pension adjustment took place on January 1, 2025. The long-term inflation assumption as of December 31, 2025, was 2.00% (previous year: 2.00%).

The valuation of the defined benefit obligation is generally performed using the most recent actuarial mortality tables as of December 31 of the respective business year.

Actuarial mortality tables (significant countries) as of December 31, 2025

Germany	Heubeck Richttafeln 2018G
United States	Pri-2012 base mortality tables with Scale MP-2021 projection
Switzerland	BVG 2020 generational with CMI 2018 mortality improvement
United Kingdom	SAPSS4 (standard actuarial mortality tables for self-administered plans (SAPS))

Sensitivity analysis

A change in the material actuarial assumptions would have the following effects on the defined benefit obligation:

Sensitivity of the defined benefit obligation as of December 31

	Increase by 0.5 percentage points		Decrease by 0.5 percentage points
Million €	2025	2024	2025	2024
Discount rate	-1,030	-1,239	1,146	1,386
Projected pension increase	799	1,036	-664	-863

An alternative valuation of the defined benefit obligation was performed to determine how changes in the underlying assumptions influence the amount of the defined benefit obligation. A linear extrapolation of these amounts based on alternative changes in the assumptions as well as an addition of combined changes in the individual assumptions is not possible.

Explanation of the amounts in the statement of income and balance sheet

Composition of expenses for pension benefits

Million €	2025	2024
Expenses for defined benefit plans	194	245
Expenses for defined contribution plans	332	309
Expenses for pension benefits (recognized in income from operations)	526	554
Net interest expense from underfunded pension plans and similar obligations	96	161
Net interest income from overfunded pension plans	-68	-70
Unwinding the discount on asset ceiling	3	5
Expenses for pension benefits (recognized in the financial result)	31	96

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Development of defined benefit obligations

Million €	2025	2024
Defined benefit obligation as of January 1	21,964	23,213
Current service cost	211	252
Past service cost	0	-7
Settlements / plan adjustments	-228	0
Interest cost	717	760
Benefits paid	-1,178	-1,109
Employee contributions	33	35
Actuarial gains/losses	-1,579	-1,287
of which adjustments relating to financial mathematical assumptions	-1,653	-949
adjustments relating to demographic assumptions	4	-58
experience adjustments	81	-276
Effects from acquisitions, divestitures/transfers to disposal groups	-649	-21
Other changes	34	-64
Currency effects	-352	192
Defined benefit obligation as of December 31	18,973	21,964

As of December 31, 2025, the weighted average duration of the defined benefit obligation amounted to 12.6 years (previous year: 12.3 years).

Development of plan assets

Million €	2025	2024
Plan assets as of January 1	21,350	20,880
Standardized return on plan assets	694	670
Deviation between actual and standardized return on plan assets	162	452
Employer contributions	164	193
Employee contributions	33	35
Benefits paid	-715	-690
Reimbursement from the CTA for pension payments made by BASF SE	-517	-161
Effects from acquisitions, divestitures/transfers to disposal groups	-478	-
Settlements / plan adjustments	-212	-
Change in the share of assets attributable to BASF Group in BASF Pensionskasse VVaG as a multi-employer plan	79	-98
Other changes	-10	-77
Currency effects	-260	146
Plan assets as of December 31	20,290	21,350

BASF SE has paid out pension benefits covered by the assets of BASF Pensionstreuhand e.V. under the CTA (Contractual Trust Arrangement). BASF Pensionstreuhand e.V. reimbursed BASF SE €517 million in 2025, of which €339 million related to 2025 and €178 million to 2024. In 2024, an amount €161 million was reimbursed for pension payments, of which €130 million related to 2024 and €31 million to 2023. Through continuous monitoring of the financing requirements of its pension plans, BASF strives to achieve the necessary yields to fill financing gaps over the course of time. Company contributions for 2026 are currently expected to be around €144 million.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Development of net defined benefit liability

Million €	2025	2024
Net defined benefit liability as of January 1	-1,020	-2,726
Current service cost	-211	-252
Past service cost	0	7
Settlements / plan adjustments	16	–
Interest cost	-717	-760
Standardized return on plan assets	694	670
Deviation between actual and standardized return on plan assets	162	452
Actuarial gains/losses of the defined benefit obligation	1,579	1,287
Benefits paid by unfunded plans	-54	258
Employer contributions	164	193
Change in the share of assets attributable to BASF Group in BASF Pensionskasse VVaG as a multi-employer plan	79	-98
Effects from acquisitions, divestitures/transfers to disposal groups	170	21
Other changes	-44	-13
Currency effects	92	-46
Change of asset ceiling for plan assets	-918	-13
Net defined benefit liability as of December 31	-8	-1,020
of which defined benefit assets	1,824	1,383
provisions for pensions and similar obligations	1,832	2,403

Effects from plan settlements and plan adjustments in 2025 resulted primarily from the transfer of benefit entitlements and the corresponding assets from the pension plan in the United States to an external insurer.

Regional allocation of defined benefit plans as of December 31

	Pension obligations		Plan assets		Asset ceiling		Net defined benefit liability
Million €	2025	2024	2025	2024	2025	2024	2025	2024
Germany	13,378	15,516	14,622	15,205	-789	–	455	-311
United States	2,077	2,671	1,454	1,862	–	–	-623	-809
Switzerland	1,653	1,754	2,227	2,195	-536	-406	38	35
United Kingdom	1,052	1,183	1,217	1,343	–	–	165	160
Other	813	840	770	745	–	–	-43	-95
Total	18,973	21,964	20,290	21,350	-1,325	-406	-8	-1,020

Explanations regarding plan assets

The target asset allocation of plan assets has been defined by using asset liability studies and is reviewed regularly. Accordingly, plan assets are aligned with the long-term development of the obligations, taking into consideration the risks associated with the specific asset classes and the regulations relating to the investment of plan assets. The existing portfolio structure is based on the target asset allocation. In addition, current market assessments are taken into consideration. In order to mitigate risks and maximize returns, a widely spread global portfolio of individual assets is held.

Liability-driven investment (LDI) techniques, such as hedging against changes in interest rates and inflation, are used in some pension plans, particularly in U.K., U.S. and German pension plans.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Structure of plan assets

Million €	2025	2024
Equities	3,887	3,898
Debt instruments	8,821	9,348
of which for government debtors	3,437	3,463
for other debtors	5,384	5,885
Real estate	1,527	1,654
Alternative investments	5,573	5,912
Cash and cash equivalents	482	538
Total	20,290	21,350

In addition to promissory notes and mortgage bonds, the debt instruments asset class also includes corporate and government bonds. The government bonds are predominantly bonds from countries with very high and high credit ratings, such as the United Kingdom, Germany, France, Switzerland and the United States. Government bonds from emerging markets are also held to a limited extent. Corporate bonds are primarily bonds from borrowers with good credit ratings, although a deliberate limited amount of high-yield bonds is also held. As part of the ongoing monitoring of default risks, which is based on a predetermined risk budget and observation of the development of the issuers' creditworthiness, the investment of pension assets may be adjusted if the market assessment changes. Alternative investments primarily include investments in private and infrastructure equity, absolute return funds and secured corporate loans.

The majority of equities (94.3% / previous year: 91.6%) and debt instruments for government debtors (95.2% / previous year: 95.4%) are priced on active markets. Overall, in 2025 price quotations on an active market existed for 80.9% (previous year: 77.6%) of debt instruments for other debtors. In the alternative investments and real estate categories, there was only a fungible market price for 2.3% (previous year: 2.5%) and 4.7% (previous year: 5.2%) of the respective investments, as of December 31, 2025. The capital market compensates for this lack of fungibility with yield premiums depending on maturity.

The plan assets as of the balance sheet date in 2025 did not include any significant amount of securities issued by BASF Group companies. In 2024, securities issued by BASF Group companies amounted to €12 million. The market value of the properties leased by the legally independent pension schemes to BASF Group companies was €112 million as of December 31, 2025, the same as in the previous year.

The retrospective initial fund loan BASF SE temporarily provided to BASF Pensionskasse VVaG in 2021 had a nominal value of €320 million as of the balance sheet date. Of this, €80 million had been utilized as of December 31, 2025.

BASF Report 2025

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At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

The funding of the plans was as follows:

Current funding situation of the pension plans as of December 31

Million €	2025		2024
	Defined benefit obligation	Plan assets	Defined benefit obligation	Plan assets
Unfunded pension plans	1,575	-	1,931	-
Funded pension plans	17,398	20,290	20,033	21,350
Asset ceiling	-	-1,325	-	-406
Total	18,973	18,965	21,964	20,944

Asset ceiling

In 2025, as in the previous year, an asset ceiling in accordance with IAS 19.64 applied to the pension plans in Switzerland. This amounted to €536 million as of December 31, 2025, and €406 million as of December 31, 2024. For the first time since 2010, an asset ceiling also applied to the BASF Pensionskasse VVaG in the reporting year. This amounted to €789 million as of December 31, 2025. The available economic benefit in the amount of €38 million corresponds to the employer contribution reserve of the pension plans in Switzerland and therefore is not subject to the asset ceiling.

Development of asset ceiling

Million €	2025	2024
Limit on plan assets on January 1	406	393
Interest expense on unrecognized portion of plan assets	3	5
Change in limit excluding interest cost (remeasurement)	918	11
Currency translation	-2	-3
Limit on plan assets on December 31	1,325	406

Defined contribution plans and insolvency protection

Contributions to defined contribution plans recorded in the income from operations amounted to €332 million in 2025 and €309 million in 2024. This includes contributions to pension protection schemes in the amount of €29 million in 2025 and €24 million in 2024.

Government pension plans

Contributions to government pension plans were €664 million in 2025 and €627 million in 2024.

BASF Report 2025

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

22 Other provisions

Accounting policies

Other provisions are recognized when there is a present obligation as a result of a past event and when there is a probable outflow of resources whose amount can be reliably estimated. Provisions are recognized at the probable settlement value.

The probable amount required to settle noncurrent provisions is discounted if the effect of discounting is material. In this case, the provision is recognized at present value. Financing costs related to unwinding the discount of provisions in subsequent periods are shown in other financial result.

Provisions for restoration obligations include expected costs for dismantling existing plants and buildings. If BASF is the only responsible party that can be identified, the provision covers the entire expected obligation. At sites operated together with one or more partners, the provision generally covers only BASF's share of the expected obligation. The amount of the provision is determined based on the available technical information on the site, the technology used, legal regulations, and official requirements. The calculation accounts for expected significant changes in obligations.

Provisions for environmental protection and remediation costs are recognized for expected costs for rehabilitating contaminated sites, recultivating landfills, removal of environmental contamination at existing production or storage sites, and for similar measures as well as for obligations to surrender emission certificates.

Provisions for employee obligations primarily consist of variable compensation including associated social security contributions, as well as obligations for granting long-service bonuses. The latter are predominantly calculated based on actuarial principles.

Provisions for obligations from sales and purchase contracts largely comprise obligations arising from rebates granted and other price discounts in the Agricultural Solutions segment, warranties and product liabilities, sales commissions and losses from onerous contracts.

Provisions for restructuring measures include severance payments to departing employees or similar personnel expenses as well as expected costs for site closures, including costs for demolition and similar measures. As a rule, provisions are recognized for these expenses when a corresponding plan has been approved and announced by management.

Provisions for litigation, damage claims and similar obligations contain anticipated expenses from lawsuits in which BASF is the defendant party, as well as obligations under damage claims against BASF and fines. In order to determine the amount of the provisions, the company takes into consideration the facts related to each case, the size of the claim, compensation awarded in similar cases and independent expert advice as well as assumptions regarding the probability of a successful claim and the range of possible claims. Actual costs can deviate from these estimates (for more information, see Note 23 on page 388 onward).

Noncurrent provisions were discounted at a rate between 2.2% and 3.5% (previous year: between 2.2% and 3.5%).

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Notes | 385

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Further Information

Explanation of other provisions

Other provisions

Million €	December 31, 2025		December 31, 2024
	Noncurrent	Current	Noncurrent	Current
Restoration obligations	235	–	241	–
Environmental protection and remediation costs	855	208	854	262
Employee obligations	345	1,098	406	926
Obligations from sales and purchase contracts	112	1,611	145	1,688
Restructuring measures	139	417	59	62
Litigation, damage claims and similar obligations	75	61	93	63
Other	93	300	86	319
Total	1,854	3,693	1,883	3,320

The decrease in provisions for environmental protections measures and remediation resulted mainly from lower provisions for remediation, primarily due to the devaluation of the U.S. dollar against the euro as well as lower provisions for obligations to surrender emission certificates.

The increase in provisions for employee obligations was mainly due to higher provisions for variable compensation and offsetting reclassifications to disposal groups.

The decrease in provisions for obligations from sales and purchase contracts resulted mainly from lower provisions for rebates, mainly due to the devaluation of the U.S. dollar as well as reclassifications to disposal groups.

The increase in provisions for restructuring measures was mainly attributable to higher provisions for severance payments.

Other includes interest on noncurrent tax provisions.

The following table shows the development of other provisions by category. Other changes include changes in the scope of consolidation, acquisitions, divestitures, currency effects and reclassifications to disposal groups as well as the reclassification of obligations to liabilities when the amount and timing of these obligations become known. The climate risks presented in Note 1.4 (from page 314 onward) did not lead to additional provisions in either year.

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Consolidated Financial Statements

Further Information

Development of other provisions in 2025

Million €	Jan. 1, 2025	Additions	Unwinding of discount	Utilization	Releases	Other changes	Dec. 31, 2025
Restoration obligations	241	32	6	-34	-1	-10	235
Environmental protection and remediation costs	1,115	204	14	-199	-8	-62	1,063
Employee obligations	1,332	1,125	1	-864	-37	-115	1,443
Obligations from sales and purchase contracts	1,833	1,878	3	-1,593	-100	-299	1,723
Restructuring measures	120	478	0	-49	-6	13	556
Litigation, damage claims and similar obligations	155	26	0	-26	-14	-5	136
Other	405	235	2	-150	-36	-64	392
Total	5,202	3,979	26	-2,916	-201	-542	5,548

BASF Report 2025

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

23 Risks from litigation and claims

ESRS 2 SBM-3

Since 2019, numerous lawsuits filed by individuals, corporations, municipalities, tribal governments, and/or states claiming various injuries, including personal injury, property and/or natural resource damages for alleged contamination through per-fluorinated and polyfluorinated alkyl compounds (“PFAS”) have been pending against, among others, members of BASF Group, primarily BASF Corporation (a U.S. subsidiary of BASF) in the United States and, since 2024, also in Canada.

Defendants are primarily manufacturers/distributors of aqueous film-forming firefighting foam (“AFFF”) and their suppliers; some cases also involve allegations relating to alleged PFAS from non-AFFF sources (such as paper mills or site operations). BASF is primarily named as a defendant as the legal successor to Ciba, which until 2003 produced and distributed surfactants for the firefighting foam industry (trade name “Lodyne”).

Overall, members of BASF Group are defendants in over 8,700 of such lawsuits as of February 2026 and are defending against these claims. Most of the lawsuits are pending in a multi-district litigation (MDL) pending in federal court in South Carolina; other cases are pending in federal and state courts in Alabama, Maine, Washington, and Wisconsin. At this time, BASF cannot predict the outcome of resolving these matters or what potential actions may be taken by regulatory agencies. An adverse outcome could be material to BASF’s financial results.

On May 20, 2024, BASF Corporation agreed to a class settlement with U.S. public water systems that detected PFAS in their drinking water sources, which they allege to be associated with the use of AFFF products. BASF Corporation agreed to contribute €305 million ($316.5 million) in total (€301 million ($312.5 million) to resolve the PFAS claims, plus €4 million ($4 million) toward settlement administration costs). BASF Corporation paid the administration cost in July 2024, and the amount to resolve the PFAS claims in March 2025. BASF Corporation has insurance through a number of insurers and is pursuing recovery of its settlement payment under those policies. The settlement releases these claims against BASF Corporation, Ciba, and other related corporate entities. It does not constitute an admission of liability or wrongdoing by BASF Corporation or Ciba. BASF and its relevant affiliates also intend to continue to defend itself in all remaining PFAS matters.

Furthermore, BASF SE and its affiliated companies are regularly involved as defendants or other parties in legal and regulatory proceedings. To our current knowledge, none of these proceedings will have a material impact on the economic situation of BASF.

BASF Report 2025
Notes | 388

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Consolidated Financial Statements

Further Information

24 Other financial obligations

The figures listed below are stated at nominal value:

Other financial obligations

Million €	December 31, 2025	December 31, 2024
Bills of exchange	2	1
Guarantees	20	20
Warranties	29	32
Collateral granted on behalf of third-party liabilities	–	0
Initiated investment projects	4,243	7,027
of which purchase commitments	952	2,158
for the purchase of intangible assets	6	7
Payment and loan commitments and other financial obligations	396	430

The table does not include financial guarantees (for more information on financial guarantees, see Note 25 from page 389 onward). Of the initiated investment projects, companies allocated to the coatings disposal group accounted for €79 million as of December 31, 2025.

Obligations arising from purchase contracts

Obligations from purchase contracts resulted primarily from long-term purchase obligations for raw materials. Starting from December 31, 2025, obligations arising from supply agreements for energy from renewable sources are shown in Note 25.2 from page 393 onward.

Obligations arising from purchase contracts

Million €	December 31, 2025	December 31, 2024
Following year 1	7,391	7,169
Following year 2	3,120	3,341
Following year 3	1,801	2,798
Following year 4	1,734	2,433
Following year 5	1,646	2,322
Following year 6 and maturities beyond this year	5,163	11,228
Total	20,854	29,292

25 Supplementary information on financial instruments

25.1 Accounting policies

Financial assets and financial liabilities are recognized in the consolidated balance sheet when the BASF Group becomes a party to a financial instrument. Financial assets are derecognized when BASF no longer has a contractual right to the cash flows from the financial asset or when the financial asset is transferred together with all material risks and rewards of ownership or the significant risks and rewards are neither transferred nor retained and BASF does not have control of the financial asset after it has been transferred. For example, receivables are derecognized when they are definitively found to be uncollectible such as in the event of concluded insolvency proceedings. Financial liabilities are derecognized when the contractual obligations expire, are discharged or cancelled. Regular-way purchases and sales of financial instruments are accounted for using the settlement date; in precious metal trading, the trade date is used.

The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If pricing on an active market is available, for example in the form of exchange prices, these are used as

BASF Report 2025

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Combined Management's Report
Consolidated Financial Statements
Further Information

the basis for the measurement. Otherwise, the measurement is based on either internal measurement models using current market parameters or external measurements, for example, from banks. These internal measurements rely predominantly on the net present value method and option pricing models. These models incorporate, for example, expected future cash flows as well as discount factors adjusted for term and, potentially, risk. Depending on the availability of market parameters, BASF assigns financial instruments' market values one of the three levels of the fair value hierarchy pursuant to IFRS 13. Reassignment to a different level during a fiscal year is only carried out if the availability of observable market parameters for identical or similar items changes.

If the level 3 fair values calculated at the time of initial recognition using a valuation model, differ from the transaction price, the differences are deferred and reported in the balance sheet together with the positive or negative fair value of the respective financial instrument according to the valuation model. The differences are generally amortized over the terms of the contracts using the straight-line method.

The classification and measurement of financial assets is based on the one hand on the cash flow condition (the "solely payments of principal and interest" criterion), that is, the contractual cash flow characteristics of an individual financial asset. On the other hand, it also depends on the business model used for managing financial asset portfolios. Based on these two criteria, BASF uses the following measurement categories for financial assets:

Financial assets measured at fair value through profit or loss include all financial assets whose cash flows are not solely payments of principal and interest in accordance with the cash flow condition established in IFRS 9. Furthermore, this measurement category includes financial assets whose business model does not consist of collecting at least a portion of the contractually agreed cash flows expected over the term by holding them. At BASF, derivatives, for example, are allocated to this measurement category. In general, BASF does not exercise the fair value option in IFRS 9, which permits the allocation of financial instruments not to be measured at fair value through profit or loss on the basis of the cash flow condition or the business model criterion to the above category under certain circumstances. These instruments are initially measured at fair value, which typically equals the transaction price.

In 2024, BASF concluded a climate protection agreement with the Federal Republic of Germany to fund a heat pump at the Ludwigshafen site. This agreement is a contract for difference and is measured as a derivative at fair value. The effects on earnings from measurement of the contract are initially deferred. When the heat pump goes into operation, the deferred subsidy will be recognized in profit or loss in line with the utilized amount of the funding.

Financial assets measured at amortized cost include all assets with contractual terms that give rise to cash flows on specific dates, provided these cash flows are solely payments of principal and interest on the principal amount outstanding in accordance with the cash flow condition in IFRS 9, to the extent that the asset is held with the intention of collecting the expected contractual cash flows over its term. At BASF, this measurement category includes trade accounts receivable, as well as receivables reported under other receivables and miscellaneous assets and certain securities.

Initial measurement of these assets is generally at fair value plus directly attributable transaction costs. The fair value usually corresponds to the transaction price at the time of acquisition or, in the case of trade accounts receivable, to the transaction price pursuant to IFRS 15. Subsequent measurement effects are recognized in income using the effective interest method.

Impairments are recognized for expected credit losses at both initial and subsequent measurement, even before the occurrence of any default event. Counterparties are generally considered to default when they become insolvent, become a debtor in a creditor protection program or are in a finance-related legal dispute with BASF, or more than half of BASF's receivables portfolio with them is more than 90 days

BASF Report 2025
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Further Information

overdue. In these cases, individual impairments are recognized for the financial assets measured at amortized cost that are then considered to be credit impaired.

The extent of expected credit losses is determined based on the credit risk of a financial asset, as well as any changes to this credit risk: If the credit risk of a financial asset has increased significantly since initial recognition, expected credit losses are generally recognized over the lifetime of the asset. If, however, the credit risk has not increased significantly in this period, impairments are generally only recognized as 12-month expected credit losses. By contrast, under the simplified approach for determining expected credit losses permitted by IFRS 9, impairments for receivables such as lease receivables and trade accounts receivable always cover the lifetime expected credit losses of the receivable concerned.

At BASF, the credit risk of a financial asset is assessed using both internal information and external rating information on the respective counterparty. A significant increase in the counterparty's credit risk is assumed if its rating is lowered by a certain number of notches. It is generally assumed that the credit risk for a counterparty with a high credit rating will not have increased significantly.

Regional and, in certain circumstances, industry-specific factors and expectations are taken into account when assessing the extent of impairment as part of the calculation of expected credit losses and individual impairments. In addition, BASF uses internal and external ratings and the assessments of debt collection agencies and credit insurers, when available. Individual impairments are also based on experience relating to customer solvency and customer-specific risks. Bank guarantees and letters of credit are used to an immaterial extent. Expected credit losses and individual impairments are only calculated for receivables to the extent they are not covered by collateral.

A decrease in impairment due, for example, to a reduction in the credit risk of a counterparty or an objective event occurring after the impairment is recorded in profit or loss. Reversals of impairments may not exceed amortized cost less any expected future credit losses.

Financial assets measured at fair value through other comprehensive income include all assets with contractual terms that give rise to cash flows on specified dates that are solely payments of principal and interest on the principal amount outstanding, in accordance with the cash flow condition in IFRS 9. Furthermore, the assets in this measurement category may not just be held with the intention of collecting the expected contractual cash flows over their term, but also generating cash flows from their sale. At BASF, trade accounts receivable that are available for sale as part of a factoring agreement are allocated to this category. Additionally, certain securities that are reported as other financial assets or marketable securities are allocated to this category. BASF does not exercise the option to subsequently measure equity instruments through other comprehensive income. Assets measured at fair value through other comprehensive income are initially measured at fair value including directly attributable transaction costs. At initial recognition, the fair value usually corresponds to the transaction price of the receivables and securities allocated to this category. Subsequent measurement is likewise at fair value. Changes in the fair value are recognized in other comprehensive income and reclassified to the statement of income when the asset is disposed of. Impairments on financial assets measured at fair value through other comprehensive income are calculated in the same way as impairments on financial assets measured at amortized cost and recognized in profit or loss.

The following measurement categories are used for financial liabilities:

Financial liabilities measured at amortized cost generally include all financial liabilities, provided these do not represent derivatives. At initial recognition, they are generally measured at fair value, taking into account directly attributable transaction costs. At initial recognition, the fair value usually corresponds to the value of the consideration received. Subsequent measurement is recognized in profit or loss at amortized cost using the effective interest method. At BASF, for example, bonds and liabilities to banks reported under financial indebtedness are measured at amortized cost.

BASF Report 2025
Notes | 391

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Combined Management's Report
Consolidated Financial Statements
Further Information

BASF has concluded supplier finance arrangements under which suppliers are entitled to receive invoice amounts prior to the original due date. Payment to the supplier is made by one of several participating banks with a discount. BASF pays the full invoice amount to the banks on the original due date. As the original payment obligations remain in place and there is no change in the main payment terms, the obligations continue to be reported under trade accounts payable.

Financial liabilities measured at fair value through profit or loss contain derivative financial liabilities. At initial recognition, these are measured at fair value, which generally equates to the transaction price. Fair value is also applied as a measurement basis for these liabilities in subsequent measurement. The option to subsequently measure non-derivative financial liabilities at fair value is not exercised. Derivative financial instruments can be embedded within other contracts, creating a hybrid financial instrument. If IFRS policies require separation, the embedded derivative is accounted for separately from its host contract and measured at fair value. If IFRS 9 does not provide for separation, the hybrid instrument is accounted for at fair value in its entirety.

Financial guarantees of the BASF Group are contracts that require compensation payments to be made to the guarantee holder if a debtor fails to make payment when due under the terms of a transaction entered into with the holder of the guarantee. Financial guarantees issued by BASF are measured at fair value upon initial recognition. In subsequent periods, these financial guarantees are carried at the higher of amortized cost or the expected credit losses as of the reporting date.

In cash flow hedges, future cash flows and the related income and expenses are hedged against the risk of changes in value. To this end, future underlying transactions and the corresponding hedging instruments are designated in a cash flow hedge accounting relationship for accounting purposes. The effective portion of the change in fair value of the hedging instrument, which often meets the definition of a derivative, and the cost of hedging are recognized directly in equity under other comprehensive income over the term of the hedge, taking deferred taxes into account. The ineffective portion is recognized immediately in the income statement. In the case of future transactions that lead to recognition of a nonfinancial asset or a nonfinancial liability, the cumulative fair value changes of the hedge in equity are generally charged against the cost of the hedged item on its initial recognition. For hedges based on financial assets, financial liabilities or future transactions, cumulative fair value changes of the hedges are transferred from equity to the income statement in the reporting period in which the hedged item is recognized in the income statement. The maturity of the hedging instrument is aligned with the effective date of the future transaction.

When fair value hedge accounting is used, the asset or liability recognized is hedged against the risk of a change in fair value. The hedging instruments used, which often take the form of a derivative, are measured at fair value and changes in fair value are recognized in the statement of income. The carrying amounts of the assets or liabilities designated as the underlying transaction are also measured at fair value through the statement of income.

BASF Report 2025
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Consolidated Financial Statements
Further Information

25.2 Financial risks

Market risks

Foreign currency risks: Changes in exchange rates could lead to losses in the value of financial instruments and adverse changes in future cash flows from planned transactions. Foreign currency risks from financial instruments result from the translation at the closing rate of financial receivables, loans, securities, cash and financial liabilities into the functional currency of the respective Group company. Foreign currency contracts in various currencies are used to hedge foreign exchange risks from non-derivative financial instruments and planned transactions.

The foreign currency risk exposure corresponds to the net amount of the nominal volume of the primary and the derivative financial instruments that are exposed to currency risks. Long and short positions in the same currency are offset against each other. Primary and derivative financial instruments are generally taken into account in currency risk management. Planned purchasing and sales transactions are usually not included in the currency exposure.

As of December 31, 2025, and December 31, 2024, there was no significant currency exposure as all material currency risks were hedged. Appreciation or depreciation of the respective functional currency would not have had a significant impact on BASF's income before income taxes or equity.

Interest rate risks: Interest rate risks arise from changes in prevailing market interest rates, which can lead to changes in the fair value of fixed-rate instruments and in interest payments for variable-rate instruments. Interest rate swaps and combined interest rate and currency derivatives are used in individual cases to hedge these risks. The derivatives are presented in Note 25.5 (from page 403 onward). Interest rate risks are relevant to BASF's financing activities but are not of material significance to BASF's operating activities.

The variable interest risk exposure, which also includes fixed rate bonds maturing in the following year, amounted to -€5,497 million as of December 31, 2025 (previous year: -€3,377 million). An increase in all relevant interest rates by one half of a percentage point would have lowered income before income taxes by €17 million as of December 31, 2025. An increase in all relevant interest rates by one percentage point would have lowered income before income taxes by €34 million as of the same date. An increase in all relevant interest rates by one half of a percentage point would have reduced income before income taxes by €10 million as of December 31, 2024 (an increase of one percentage point would have reduced income before income taxes by €19 million). As of December 31, 2025, interest rate derivatives were designated in a hedge accounting relationship. An increase in the relevant interest rates by half a percentage point would have raised shareholders' equity by €10 million (€19 million increase in shareholders' equity with an increase of one percentage point). There were no interest derivatives designated in hedge accounting relationships as of December 31, 2024. The sensitivity of the variable interest risk exposure has a linear relationship to the assumed interest rate changes. Declining interest rates would have the opposite effect compared to the previously mentioned sensitivities.

Carrying amounts of primary interest-bearing financial instruments

Million €	December 31, 2025		December 31, 2024
	Fixed interest rate	Variable interest rate	Fixed interest rate	Variable interest rate
Loans	79	112	117	68
Securities	386	79	399	44
Financial indebtedness	14,507	6,581a	16,888	4,873a

a Including fixed-interest bonds due in the following year

BASF Report 2025
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Further Information

Nominal and fair values of combined interest rate and currency swaps as well as interest rate swaps

Million €	December 31, 2025		December 31, 2024
	Nominal value	Fair value	Nominal value	Fair value
Combined interest rate and currency swaps	2,849	-15	3,960	248
of which fixed rate	2,849	-15	3,960	248
Interest rate swaps	467	1	–	–
of which fixed rate	467	1	–	–

Commodity price risks: Some of BASF's divisions are exposed to strong fluctuations in raw materials prices. These result primarily from raw materials (for example, naphtha, benzene, natural gas, LPG condensate) as well as from precious metals and battery metals. $^{1}$ BASF takes the following measures to reduce commodity price risks:

BASF uses derivatives to hedge the risks of raw materials prices. These are primarily derivatives on natural gas, crude oil and oil products.
The divisions ECMS as well as Battery Materials enter into both short-term and long-term purchase contracts with precious and battery metal producers. They also buy metals on spot markets from various business partners. The price risk from metals purchased to be sold on to third parties, or for use in the production of catalysts and battery materials, is hedged using derivative instruments. This is mainly performed using forward contracts, which are settled by either entering into offsetting contracts or by delivering the metal.
In the Agricultural Solutions division, the sales prices of products are sometimes pegged to the price of certain agricultural commodities. To hedge the resulting risks, derivatives on agricultural commodities are concluded.

In addition, BASF holds limited unhedged precious metal, natural gas and oil product positions, which can also include derivatives, for trading on its own account. The value of these positions is exposed to market price volatility and is subject to constant monitoring.

By holding commodity derivatives, precious metal trading positions and unhedged oil product and battery metals positions, BASF is exposed to price risks. The valuation of commodity derivatives and precious metal trading positions at fair value as well as unhedged oil product and battery metals positions means that adverse changes in market prices could negatively affect the earnings and equity of BASF.

BASF holds several physical power purchase agreements (PPAs) with terms of up to 25 years, under which BASF procures electricity from renewable sources based on their production profiles. Under these physical PPAs, BASF procures electricity and associated green electricity certificates. The volumes and risks resulting from these physical PPAs are subject to continuous monitoring, and the electricity is primarily consumed in production processes, thus contributing to BASF's value generation. Due to volatile production profiles, BASF faces the volume risk that, at the time of delivery, the amount of electricity delivered exceeds its electricity demand, requiring BASF to purchase and immediately sell the excess electricity. However, these sales are offset by electricity purchases within reasonable periods (up to 12 months), so that BASF remains a net electricity purchaser. Since BASF holds the physical PPAs for the purpose of fully consuming the delivered electricity and remains a net purchaser even with volatile production profiles, these physical PPAs fall under the own use exemption and are therefore not accounted for as derivatives. The costs for electricity deliveries from physical PPAs under which BASF is exposed to volume risk amounted to €113 million in 2025. In 2025, 654 GWh could not be consumed upon delivery. The resulting sales transactions generated €45 million in income. The costs of

BASF Report 2025

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repurchasing unused electricity amounted to €39 million in 2025. The following expected obligations resulted from physical PPAs that fall under the own use exemption:

Obligations arising from physical PPAs

Million €	December 31, 2025
	PPAs with volatile delivery profiles	PPAs without volatile delivery profiles
Following year 1	204	49
Following year 2	176	49
Following year 3	184	62
Following year 4	184	47
Following year 5	185	45
Following year 6 and maturities beyond this year	3,053	787
Total	3,987	1,038

Unlike electricity, green electricity certificates obtained from physical PPAs can be stored in case of oversupply and are consumed at a later date. They fall under the own use exemption and are not accounted for as derivatives.

Furthermore, BASF holds several virtual PPAs in the United States with initial terms of up to 15 years, under which BASF does not receive a physical delivery of electricity. The electricity forward agreements embedded in virtual PPAs are recognized separately as derivatives at fair value through profit or loss. In the event of adverse changes in energy market prices, measurement of electricity forward agreements at fair value can lead to negative effects on BASF's earnings. The electricity price risks resulting from virtual PPAs are partly hedged with derivatives.

BASF performs value-at-risk analyses for commodity derivatives and precious metal trading positions. Value at risk continuously measures the market price risk and quantifies the loss that is not exceeded by a specific confidence level during a defined holding period. BASF bases the value-at-risk calculation on a confidence interval of 95% and a holding period of one day. BASF applies the variance-covariance method to calculate value at risk.

BASF uses value at risk in conjunction with other risk management tools. Besides value at risk, BASF sets volume-based limits as well as exposure and stop-loss limits.

Risk positions from commodity derivatives not eligible for the own use exemption

Million €	December 31, 2025		December 31, 2024
	Exposure	Value at Risk	Exposure	Value at Risk
Crude oil, oil products and natural gas	118	7	3	8
Precious metals	71	2	81	1
Agricultural commodities	61	0	116	0
Electricity	2	0	-	-

a Certain commodity derivatives categorized as level 3 fair value, such as power purchase agreements and the climate protection agreement, are not included in the table above. Sensitivities for these commodity derivatives are provided in Note 25.4 from page 401 onward.

The exposure corresponds to the net amount of all long and short positions of the respective commodity category (for more information on financial risks and BASF's risk management, see the Opportunities and Risks Report from page 90 onward).

Default and credit risk

Default or credit risks arise due to the fact that customers and debtors may not fulfill their obligations. BASF regularly analyzes the creditworthiness of the counterparties and grants credit limits on the basis of this analysis. Due to the global activities and diversified customer structure of the BASF Group, there

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Combined Management's Report

Consolidated Financial Statements

Further Information

is no significant concentration of default risk. The risk of default is mitigated to a limited extent by collateral, in particular bank guarantees and assets. The carrying amount of all receivables, loans and interest-bearing securities plus the nominal value of financial obligations stemming from contingent liabilities not to be recognized represents the maximum default risk for BASF (for more information on credit risks, see Note 17 from page 367 onward).

In 2025, €27 million was dissolved from other liabilities relating to financial guarantees (previous year: €37 million addition). The balance recognized for expected credit losses amounted to €10 million as of December 31, 2025 (previous year: €37 million). The maximum default amount of the financial guarantees issued was €142 million. The maturity of the entire amount is possible in 2026 at the earliest. The maximum default amount in the previous year was €182 million and the earliest possible maturity was €170 million for 2025 and €12 million for 2026.

BASF holds interests in funds to which receivables were previously transferred. BASF's interest represents the second loss tranche for the previously transferred receivables. The first and third loss tranches are held by investors. The carrying amount of the interests held, reported under short-term securities, was €58 million as of December 31, 2025 (previous year: €36 million). This corresponds approximately to the fair value and the maximum loss amount. The transfer of receivables to the funds took place primarily in the second half of the year, reflecting the seasonality of the business.

Liquidity risks

BASF promptly recognizes any risks from cash flow fluctuations as part of liquidity planning. BASF has ready access to sufficient liquid funds from the ongoing commercial paper program and confirmed lines of credit from banks.

25.3 Maturity analysis

The interest and principal payments as well as other payments for derivative financial instruments are relevant for the presentation of the maturities of the contractual cash flows from financial liabilities. Future cash flows are not discounted here.

Derivatives are included using their net cash flows, provided they have negative fair values and therefore represent a liability. Derivatives with positive fair values are assets and are therefore not taken into account.

Maturities of contractual cash flows from financial liabilities as of December 31, 2025

Million €	Bonds and other liabilities to the capital market	Liabilities to credit institutions	Accounts payable, trade	Derivative liabilities	Miscellaneous liabilities	Total
2026	1,841	1,254	5,471	361	1,557	10,484
2027	2,572	540	6	160	297	3,575
2028	2,007	458	7	16	219	2,706
2029	1,269	208	–	48	156	1,681
2030	1,027	923	–	24	121	2,096
2031 and thereafter	7,746	4,761	–	150	745	13,403
Total	16,462	8,145	5,484	759	3,095	33,945

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Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Maturities of contractual cash flows from financial liabilities as of December 31, 2024

Million €	Bonds and other liabilities to the capital market	Liabilities to credit institutions	Accounts payable, trade	Derivative liabilities	Miscellaneous liabilities	Total
2025	2,058	1,150	6,901	236	1,188	11,532
2026	1,856	1,361	11	5	305	3,538
2027	2,608	541	11	–	224	3,385
2028	1,872	459	–	–	181	2,511
2029	1,160	199	–	–	136	1,496
2030 and thereafter	9,060	3,460	–	82	813	13,415
Total	18,615	7,170	6,923	323	2,847	35,876

BASF Report 2025
Notes | 397

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Combined Management's Report
Consolidated Financial Statements
Further Information

25.4 Classes and categories of financial instruments

Carrying amounts and fair values of financial instruments as of December 31, 2025

Million €	Carrying amounts	Total carrying amounts within scope of application of IFRS 7	Valuation category in accordance with IFRS 9b	Fair value	Of which fair value level 1c	Of which fair value level 2d	Of which fair value level 3e
Shareholdingsg	446	446	FVTPL	0	-	0	-
Receivables from finance leases	29	29	n. a.	29	-	-	-
Accounts receivable, trade	7,575	7,575	AC	7,575	-	-	-
Accounts receivable, trade	477	477	FVTOCI	477	-	477	-
Accounts receivable, trade	273	273	FVTPL	273	-	273	-
Derivatives – no hedge accounting	404	404	FVTPL	426	7	203	215g
Derivatives – hedge accounting	149	149	n. a.	149	-	149	-
Other receivables and miscellaneous assetsf	5,793	998	AC	998	-	-	-
Other receivables and miscellaneous assetsf	89	89	FVTPL	89	-	89	-
Securities	71	71	AC	71	-	-	-
Securities	367	367	FVTOCI	367	277	90	-
Securities	261	261	FVTPL	261	258	2	-
Cash equivalents	129	129	FVTPL	129	129	-	-
Cash and cash equivalents	2,541	2,541	AC	2,541	-	-	-
Total assets	18,604	13,809		13,385	672	1,285	215
Bonds	14,114	14,114	AC	13,857	11,472	2,386	-
Liabilities to credit institutions	6,975	6,975	AC	6,997	-	6,997	-
Liabilities from leases	1,553	1,553	n. a.	1,553	-	-	-
Accounts payable, trade	5,484	5,484	AC	5,484	-	-	-
Derivatives – no hedge accounting	611	611	FVTPL	569	31	577	-39h
Derivatives – hedge accounting	89	89	n. a.	89	-	89	-
Financial guarantees	10	10	n. a.	10	-	-	-
Other liabilitiesf	3,045	1,850	AC	1,850	-	-	-
Total liabilities	31,881	30,686		30,409	11,503	10,048	-39

a The values presented under "Fair value" in the table above relate to significant shareholdings because only these are measured at fair value. All insignificant shareholdings are measured at cost (carrying amount: €446 million). Fair value level 1 is applied to publicly listed shareholdings. Level 2 is applied to shareholdings for which valuation is based on parameters observable in the market to the greatest extent possible. These may be adjusted to reflect valuation-relevant characteristics of the respective shareholding in the fair value.
b AC: amortized cost; FVTOCI: fair value through other comprehensive income; FVTPL: fair value through profit or loss; a more detailed description of the categories can be found in Note 25.1 from page 389 onward.
Fair value was determined based on quoted, unadjusted prices on active markets.
Fair value was determined based on parameters for which directly or indirectly quoted prices on active markets are available.
Fair value was determined based on parameters for which there is no observable market data.
Does not include separately shown derivatives or receivables and liabilities from finance leases. Furthermore, other liabilities are presented without the separately disclosed financial guarantees. If miscellaneous receivables are valued at fair value through profit or loss, their valuation is generally based on parameters observable on the market. These are adjusted to reflect valuation-relevant characteristics of the respective assets in the fair value.
The carrying amount of the included electricity forward agreements reported in the balance sheet under other receivables and miscellaneous assets is €6 million after subtracting the differences of €22 million described on page 401. This item also includes options on electricity forward agreements with a fair value of €94 million and the climate protection agreement with a fair value of €94 million.
h The carrying amount of the electricity forward agreements reported in the balance sheet under other liabilities is €3 million after subtracting the differences of €42 million described on page 401.

BASF Report 2025
Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Carrying amounts and fair values of financial instruments as of December 31, 2024

Million €	Carrying amounts	Total carrying amounts within scope of application of IFRS 7	Valuation category in accordance with IFRS 9^{b}	Fair value	Of which fair value level 1^{c}	Of which fair value level 2^{d}	Of which fair value level 3^{e}
Shareholdings^{a}	533	533	FVTPL	0	–	0	–
Receivables from finance leases	31	31	n. a.	31	–	–	–
Accounts receivable, trade	9,665	9,665	AC	9,665	–	–	–
Accounts receivable, trade	396	396	FVTOCI	396	–	396	–
Accounts receivable, trade	332	332	FVTPL	332	–	332	–
Derivatives – no hedge accounting	647	647	FVTPL	787	5	519	263^{a}
Derivatives – hedge accounting	303	303	n. a.	303	–	303	–
Other receivables and miscellaneous assets^{f}	4,552	1,098	AC	1,098	–	–	–
Other receivables and miscellaneous assets^{f}	89	89	FVTPL	89	–	89	–
Securities	36	36	AC	36	–	–	–
Securities	376	376	FVTOCI	376	294	82	–
Securities	288	288	FVTPL	288	283	4	–
Cash equivalents	75	75	FVTPL	75	75	–	–
Cash and cash equivalents	2,838	2,838	AC	2,838	–	–	–
Total assets	20,162	16,708		16,315	657	1,727	263
Bonds	15,751	15,751	AC	15,300	12,493	2,807	–
Liabilities to credit institutions	6,011	6,011	AC	6,032	–	6,032	–
Liabilities from leases	1,663	1,663	n. a.	1,663	–	–	–
Accounts payable, trade	6,923	6,923	AC	6,923	–	–	–
Derivatives – no hedge accounting	325	325	FVTPL	285	3	314	-32^{b}
Derivatives – hedge accounting	1	1	n. a.	1	–	1	–
Other liabilities^{f}	3,470	2,277	AC	2,277	–	–	–
Total liabilities	34,144	32,951		32,482	12,496	9,155	-32

a The values presented under "Fair value" in the table above relate to significant shareholdings because only these are measured at fair value. All insignificant shareholdings are measured at cost (carrying amount: €533 million). Fair value level 1 is applied to publicly listed shareholdings. Level 2 is applied to shareholdings for which valuation is based on parameters observable in the market to the greatest extent possible. These may be adjusted to reflect valuation-relevant characteristics of the respective shareholding in the fair value.
b AC: amortized cost; FVTOCI: fair value through other comprehensive income; FVTPL: fair value through profit or loss; a more detailed description of the categories can be found in Note 25.1 from page 389 onward.
c Fair value was determined based on quoted, unadjusted prices on active markets.
d Fair value was determined based on parameters for which directly or indirectly quoted prices on active markets are available.
e Fair value was determined based on parameters for which there is no observable market data.
f Does not include separately shown derivatives or receivables and liabilities from finance leases. If miscellaneous receivables are valued at fair value through profit or loss, their valuation is generally based on parameters observable on the market. These are adjusted to reflect valuation-relevant characteristics of the respective assets in the fair value.
g The carrying amount of the electricity forward agreements reported in the balance sheet under other receivables and miscellaneous assets is €38 million after subtracting the differences of €140 million. This item also includes the climate protection agreement with a fair value of €84 million.
h The carrying amount of the electricity forward agreements reported in the balance sheet under other liabilities is €8 million after subtracting the differences of €41 million.

For trade accounts receivable, other receivables and miscellaneous assets, cash and cash equivalents, as well as trade accounts payable and other liabilities measured at amortized cost as well as financial guarantees, the carrying amount approximates the fair value.

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Combined Management's Report

Consolidated Financial Statements

Further Information

Financial instruments measured at fair value – valuation methods and input factors

Million €
Financial instrument	Fair value level	Description	Valuation method	Key input factors to determine fair value	Dec. 31, 2025	Dec. 31, 2024
Accounts receivable, trade	Level 2	Receivables with embedded commodity derivatives	Discounting of expected future cash flows	Observable commodity price quotations, yield curves, credit default premiums	273	332
	Level 2	Receivables available for sale under a factoring agreement	Valuation using nominal values	Nominal values	477	396
Derivatives with positive fair values	Level 1	Exchange-traded commodity derivatives	Price quotation on an active market for identical assets	Market price on the balance sheet date	7	5
	Level 2	OTC currency, interest rate and commodity derivatives	Discounting of expected future cash flows, option pricing models	Exchange rate quotations, observable yield curves, commodity price quotations, currency and commodity price volatility, credit default premiums	353	823
	Level 3	Electricity forward agreements and options	Discounting of expected future cash flows, Monte Carlo simulation	Electricity price quotations, long-term electricity price forecasts,+expected electricity volumes,+estimated startup date,+yield curves, credit default premiums	122b	178c
	Level 3	Climate protection agreement	Discounting of expected future cash flows	Price quotations for emissions, natural gas and electricity, long-term price forecasts for emissions,+natural gas+and electricity,+estimated production volumes+and yield curves	94	84
Other receivables and miscellaneous assets	Level 2	Performance-based interest-bearing loan to BASF Pensionakasse VVaG and others	Discounting of expected future cash flows	Expected cash flows from the investment portfolio, discount factors	82	80
	Level 2	Surrender values for insurance policies	Surrender values according to contractual agreement	Surrender values on the balance sheet date	7	9
Securities	Level 1	Publicly traded fund shares	Price quotation on an active market for identical assets	Market price on the balance sheet date	237	260
	Level 1	Publicly traded bonds	Price quotation on an active market for identical assets	Market price on the balance sheet date	299	317
	Level 2	Bonds not publicly traded	Issuer pricing based on recognized valuation methods	Yield curves, credit default premiums	89	82
	Level 2	Fund shares not publicly traded	Fair value of the equity and debt instruments in which funds are invested	Market price on the balance sheet date, yield curves, credit default premiums, net asset value of fund investments	3	4
Cash and cash equivalents	Level 1	Publicly traded money market funds	Price quotation on an active market for identical assets	Market price on the balance sheet date	129	75
Derivatives with negative fair values	Level 1	Exchange-traded commodity derivatives	Price quotation on an active market for identical liabilities	Market price on the balance sheet date	31	3
	Level 2	OTC currency, interest rate and commodity derivatives as well as derivatives on equity instruments	Discounting of expected future cash flows, option pricing models	Exchange rate quotations, observable yield curves, commodity and stock price quotations, currency and commodity as well as stock price volatilities, credit default premiums	665	315
	Level 3	Electricity forward agreements	Discounting of expected future cash flows	Electricity price quotations, long-term electricity price forecasts,+expected electricity volumes,+estimated startup date,+yield curves, credit default premiums	-39d	-32e

a Unobservable level 3 input factors
b The carrying amount of the electricity forward agreements reported in the balance sheet under other receivables and miscellaneous assets is €6 million after subtracting the differences of €22 million described on page 401. This item also includes options on electricity forward agreements with a fair value of €94 million.
c The carrying amount of the electricity forward agreements reported in the balance sheet under other receivables and miscellaneous assets is €38 million after subtracting the differences of €140 million described on page 401.
d The carrying amount of the electricity forward agreements reported in the balance sheet under other liabilities is €3 million after subtracting the differences of €42 million described on page 401.
e The carrying amount of the contract for difference for electricity prices reported in the balance sheet under other liabilities is €8 million after subtracting the differences of €41 million described on page 401.

The electricity forward agreements presented in the previous table are derivatives embedded in virtual and physical PPAs that are not eligible for the own use exemption. A change in the key valuation parameters would have affected the level 3 fair values of the fair value hierarchy as follows:

BASF Report 2025

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At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Sensitivities for level 3 fair values as of December 31, 2025

Million €	Change in expected prices		Change in expected production volumes		Change in yield curves
	+10%	-10%	+10%	-10%	Increase by 1 percentage point	Decrease by 1 percentage point
Electricity forward agreements and options	88	-72	16	-16	-56	88
Climate protection agreement	-7	7	9	-9	-7	7

Sensitivities for level 3 fair values as of December 31, 2024

Million €	Change in expected prices		Change in expected production volumes		Change in yield curves
	+10%	-10%	+10%	-10%	Increase by 1 percentage point	Decrease by 1 percentage point
Electricity forward agreements	76	-76	22	-22	-30	36
Climate protection agreement	-6	6	8	-8	-6	7

At initial recognition, the fair values of the electricity forward agreements, which were calculated using a valuation model, were higher than the respective transaction price. Development of the differences is presented in the table below.

Development of differences yet to be amortized of electricity forward agreements

Million €	2025	2024
Differences yet to be amortized through profit or loss as of January 1	153a	204
Additions in the reporting period	32	-
Amounts recognized in profit or loss in the current reporting period	-116	-31
Currency translation	-5	8
Differences yet to be amortized through profit or loss as of December 31	64	181

a With the first-time application of the amendments to IFRS 9 and IFRS 7 relating to Contracts Referencing Nature-dependent Electricity, one PPA was derecognized. Since no adjustment was made to the prior-year figures, the opening balance as of January 1, 2025, differs from the closing balance as of December 31, 2024.

Development of assets and liabilities measured at level 3 fair value

Million €	Electricity forward agreementsa		Options on electricity forward agreements
	2025	2024	2025	2024
Carrying amounts as of January 1	168b	246	-	-
Purchases	32	-	88	-
Settlements	2	-1	-	-
Gains and losses recognized in income from operations	-130	-44	6	-
of which unrealized gains and losses attributable to assets and liabilities held at the end of the reporting period	5	-44	6	-
Currency translation	-5	10	-	-
Carrying amounts as of December 31	67	211	94	-

a Carrying amounts before subtracting differences presented in the table "Development of differences yet to be amortized of electricity forward agreements."
b With the first-time application of the amendments to IFRS 9 and IFRS 7 relating to Contracts Referencing Nature-dependent Electricity, one PPA was derecognized. Since no adjustment was made to the prior-year figures, the opening balance as of January 1, 2025, differs from the closing balance as of December 31, 2024.

The changes in carrying amounts were recognized in the income statement as other operating income or other operating expenses.

No reclassifications arose between fair value levels 1, 2 and 3 for financial assets or liabilities recognized at fair value in the reporting period.

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Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Offsetting of derivative assets and liabilities as of December 31, 2025

Million €	Offset amounts			Potential netting volume		Potential net amount
	Gross amount	Amount offset	Net amount	Due to global netting agreements	Relating to financial collateral
Derivatives with positive fair values	521	-67	455	-94	-110	250
Derivatives with negative fair values	413	-67	346	-94	-245	7

Offsetting of derivative assets and liabilities as of December 31, 2024

Million €	Offset amounts			Potential netting volume		Potential net amount
	Gross amount	Amount offset	Net amount	Due to global netting agreements	Relating to financial collateral
Derivatives with positive fair values	601	-27	573	-131	-240	202
Derivatives with negative fair values	294	-27	267	-131	-23	113

The table "Offsetting of derivative assets and liabilities" shows the extent to which assets and liabilities were offset in the balance sheet, as well as potential effects from the offsetting of derivatives subject to a legally enforceable global netting agreement (primarily in the form of an ISDA agreement) or similar agreement. For positive fair values of combined interest rate and currency swaps, the respective counterparties provided cash collaterals in an amount comparable to the outstanding fair values.

Deviations from the derivatives with positive fair values and derivatives with negative fair values reported in other receivables and other liabilities at the end of 2025 and 2024 arose from derivatives not subject to any netting agreements. These are not included in the table above.

In addition to the offsetting of derivatives presented in the table above, trade accounts receivable in 2025 were offset against trade accounts payable and advance payments received on orders, which were included in current other liabilities, provided specific netting agreements with customers existed. As a result, trade accounts receivable were reduced by €1,266 million. The reduction in trade accounts payable was €30 million and the reduction in advance payments received on orders was €1,236 million. Accordingly, the net amount for trade accounts receivable was €8,325 million (gross amount before offsetting: €9,591 million). The resulting net amount for trade accounts payable was €5,484 million (gross amount before offsetting: €5,514 million). The net amount for advance payments received on orders was €638 million (gross amount before offsetting: €1,874 million). In 2024, trade accounts receivable were also offset against trade accounts payable and the advance payments received on orders included in current other liabilities. This reduced trade accounts receivable by €1,066 million. The reduction in trade accounts payable was €57 million and the reduction in advance payments received on orders was €1,009 million. Accordingly, the net amount for trade accounts receivable was €10,393 million (gross amount before offsetting: €11,459 million). The resulting net amount for trade accounts payable was €6,923 million (gross amount before offsetting: €6,980 million). The net amount for advance payments received on orders was €727 million (gross amount before offsetting: €1,736 million).

The net gains and losses from financial instruments shown in the following table comprise the results of valuations, the amortization of discounts, the recognition and reversal of impairments, results from the translation of foreign currencies as well as interest, dividends and all other effects on the earnings

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Combined Management's Report

Consolidated Financial Statements

Further Information

resulting from financial instruments. The line item financial instruments measured at fair value through profit or loss contains only measurement effects from instruments that are not designated as hedging instruments in a hedging relationship in accordance with IFRS 9 (gains and losses from the valuation of securities recognized in equity are shown in development of income and expense recognized in equity attributable to shareholders of BASF SE on page 303. For more information, see the statement of changes in equity on page 307).

Net gains and losses from financial instruments

Million €	2025	2024
Financial assets measured at amortized cost	-305	602
of which interest result	122	145
Financial instruments measured at fair value through profit or loss	277	224
of which interest result	48	66
Financial assets measured at fair value through other comprehensive income	-17	11
of which interest result	11	13
Financial liabilities measured at amortized cost	-252	-896
of which interest result	-507	-545

25.5 Derivative financial instruments and hedging relationships

The use of derivative financial instruments

BASF is exposed to foreign currency, interest rate and commodity price risks during the normal course of business. These risks are hedged using derivative instruments as necessary in accordance with a centrally determined strategy. Hedging is employed for existing underlying transactions from the product business, cash investments and financing as well as for planned sales, raw materials purchases and capital measures. Furthermore, hedging may also be used for cash flows from acquisitions and divestitures. The risks from the hedged items and the derivatives are continually monitored. Where derivatives have a positive market value, BASF is exposed to credit risks from derivative transactions in the event of nonperformance of the other party. To minimize the default risk on derivatives with positive market values, transactions are exclusively conducted with creditworthy banks and partners and are subject to predefined credit limits.

To ensure efficient risk management, risk positions are centralized at BASF SE and certain Group companies. The contracting and execution of derivative financial instruments for hedging purposes are conducted according to internal guidelines and subject to strict control mechanisms.

BASF Report 2025

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At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Fair value of derivative instruments

Million €	Dec. 31, 2025	Dec. 31, 2024
Foreign currency forward contracts	12	53
Foreign currency options	1	0
Foreign currency derivatives	13	53
of which designated hedging instruments as defined by IFRS 9 (hedge accounting)	–	0
Combined interest rate and currency swaps	-15	247
Interest rate swaps	1	–
Interest derivatives	-14	247
of which designated hedging instruments as defined by IFRS 9 (hedge accounting)	61	301
Commodity derivatives^{a}	-144	337
of which designated hedging instruments as defined by IFRS 9 (hedge accounting)	0	1
Call and put options on equity instruments	–	-13
Derivative financial instruments	-146	624

a Market values after deduction of the differences shown in the table "Development of differences yet to be amortized of electricity forward agreements"

Hedge accounting

Cash flow hedge accounting is employed to a minor extent for the procurement of natural gas, which is exposed to commodity price risks. Commodity price-based swaps serve as hedging instruments, for which contract terms are defined to reflect the risks of the hedged item. The average hedged exercise price of the designated swaps was €29.47 per MWh as of December 31, 2025. As of December 31, 2024, the average exercise price of the designated swaps was €43.86 per MWh. Cash flows from not yet realized hedging and underlying transactions are generally recognized in profit or loss in 2026.

Furthermore, cash flow hedge accounting relationships for natural gas purchases, in which options were used as hedging instruments, were prospectively terminated in the previous year. The change in the options' time value was recognized separately in equity as costs of transaction-related hedging and, in the year during which the hedged items mature, it was initially derecognized against the carrying amount of the procured assets and recognized in profit or loss when the assets are consumed. In 2025, €3 million from maturing hedge accounting relationships was initially derecognized against the carrying amount of the inventories procured and then recognized upon consumption in profit or loss. In 2024, a decrease in time value of €16 million was recognized as a reduction in equity, and €31 million was derecognized against the carrying amount of the acquired assets. As of December 31, 2025, no options were designated as a hedging instrument.

BASF SE's fixed-rate U.S. private placement of $1.00 billion, issued in 2013, was converted to euros using combined interest rate and currency swaps, as the private placement exposes BASF to a combined interest rate and currency risk. BASF is also exposed to a combined interest rate and currency risk associated with the issue of several tranches of a fixed-interest U.S. private placement in 2024. The resulting currency risks were hedged with combined interest rate and currency swaps in 2023. These hedges were designated as cash flow hedges. No ineffectiveness was recognized in 2025 or 2024. In 2025, the hedged interest rate was 3.73% (previous year: 3.66%) and the hedged foreign exchange rate was $1.1899 per euro (previous year $1.2052 per euro). For U.S. private placements hedged in 2023, changes in value in the forward component totaling €55 million were recognized separately in equity as hedging costs in 2025, leading to an increase in equity (previous year: €48 million decrease in equity).

Furthermore, BASF was exposed to foreign currency risks in 2025 through U.S. dollar-denominated commercial paper. These risks were hedged with foreign currency forward contracts and designated in a cash flow hedge accounting relationship. The changes in value in the amount of €14 million resulting from the change in the forward rate were recognized separately in equity as hedging costs, leading to an increase in equity (previous year: €7 million increase in equity). Because all underlying transactions and hedging instruments had expired by December 31, 2025, the amount of €14 million, which was initially

BASF Report 2025

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

recognized in equity, was reclassified in full as an increase in earnings (previous year: €7 million increase in earnings). There was no ineffectiveness at any time during the year.

In connection with construction of the new Verbund site in Zhanjiang, China, BASF was exposed to foreign currency risks, especially from expenditures in euros that were hedged with foreign currency forward contracts and designated in cash flow hedge accounting relationships. As of December 31, 2025, no foreign currency forward contracts were designated. The hedged exchange rate was ¥7.6103 per euro in 2024. In 2025, €1 million was derecognized from the cash flow hedge reserve and included in the cost of property, plant and equipment (previous year: €2 million). Hedging results are recognized in profit or loss upon depreciation of property, plant and equipment.

Furthermore, BASF was exposed to a combined interest rate and currency risk in 2025 from a fixed-interest loan in Polish zloty, which was converted to euros through currency swaps. This hedge was designated as a cash flow hedge. In both the 2025 and 2024 business years, the hedged exchange rate was zt4.7065 per euro and the hedged interest rate was 3.20%. In 2025, the changes in value in the amount of €7 million resulting from the forward component's changed market rate were recognized separately in equity as hedging costs, leading to an increase in equity (previous year: €5 million decrease in equity). There was no ineffectiveness at any time during the year.

BASF is exposed to interest risk from a syndicated bank term loan facility with a variable interest rate in Chinese renminbi. Part of this interest risk is hedged via matched interest rate swaps and designated in a cash flow hedge accounting relationship. The interest rate swaps had a remaining term until 2030 and the hedged interest rate was 3.51%. No ineffectiveness occurred at any time.

The effects of the hedging relationships on the balance sheet, the cash flow hedge reserve, hedged nominal value and ineffectiveness to be determined are presented in the following tables by business year.

BASF Report 2025
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Further Information

Cash flow hedge accounting effects in 2025

Million €	Carrying amount of hedging instruments			Cash flow hedge reserve					Change in fair values for assessing ineffectiveness		Recognized ineffectiveness
	Financial assets	Financial liabilities	Balance sheet item	Nominal value	Accumulated amounts for continuing hedging relationships	Hedging effects recognized in other comprehensive income	Amounts reclassified to profit or loss for realized hedging transactions	Income statement item for recognition of reclassification	Hedging instrument	Hedged transaction	Ineffectiveness amount	Income statement item
Foreign currency risks	-	-	n. a.	-	-	81	80a	Other operating expense / Other financial expense	-	-	-	n. a.
Interest risks	1	0	Other receivables and miscellaneous assets / other liabilities	431	1	-1	0	Interest income / interest expense	-1	-1	-	n. a.
Combined interest / foreign currency risks	148	-88	Other receivables and miscellaneous assets / other liabilities	2,341	-2	-243	277	Other financial expense	206	207	-	n. a.
Commodity price risks	0	-1	Other receivables and miscellaneous assets / other liabilities	25	-1b	-8	-c	n. a.	-1	-1	-	n. a.
Total	149	-89		2,796	-1	-171	356		204	206	-

a €1 million was derecognized from the cash flow hedge reserve, reducing the cost of property, plant and equipment.
b €1 million was recognized cumulatively in the cash flow hedge reserve for discontinued hedging relationships. When the hedged transaction occurs, these amounts are derecognized and included in the cost of inventories procured.
c €6 million was derecognized from the cash flow hedge reserve, reducing the cost of inventories procured and then recognized in profit or loss upon consumption.

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Cash flow hedge accounting effects in 2024

Million €	Carrying amount of hedging instruments			Cash flow hedge reserve				Change in fair values for assessing ineffectiveness		Recognized ineffectiveness
	Financial assets	Financial liabilities	Balance sheet item	Nominal value	Accumulated amounts for continuing hedging relationships	Hedging effects recognized in other comprehensive income	Amounts reclassified to profit or loss for realized hedging transactions	Income statement item for recognition of reclassification	Hedging instrument	Hedged transaction	Ineffectiveness amount
Foreign currency risks	0	0	Other receivables and miscellaneous assets / other liabilities	63	-1	-25	20a	Other operating income	-1	-1	n. a.
Interest risks	-	-	n. a.	-	-	-	-	n. a.	-	-	n. a.
Combined interest / foreign currency risks	301	-	Other receivables and miscellaneous assets	2,525	-35	115	-127	Other financial income	322	322	n. a.
Commodity price risks	2	-1	Other receivables and miscellaneous assets	38	2b	25	0c	Other operating income	3	3	n. a.
Total	303	-1		2,626	-34	115	-106		324	324	-

a €2 million was derecognized from the cash flow hedge reserve, reducing the acquisition cost of property, plant and equipment.
b €15 million was recognized cumulatively in the cash flow hedge reserve for discontinued hedging relationships. When the hedged transaction occurs, these amounts are derecognized and included in the cost of inventories procured.
c €8 million was derecognized from the cash flow hedge reserve, increasing the cost of inventories procured and then recognized in profit or loss upon consumption.

The occurrence of all forecasted transactions was considered to be highly probable at all times during business years 2025 and 2024. Amounts accumulated in the cash flow hedge reserve for commodity price risks are derecognized against the carrying amount of acquired assets once the hedged transaction occurs. Thus, there is no immediate reclassification of the amounts recognized in the cash flow hedge reserve to profit or loss in these cases.

26 Capital structure management and statement of cash flows

26.1 Capital structure management

The aim of capital structure management is to maintain the financial flexibility needed to further develop BASF's business portfolio and take advantage of strategic opportunities. The objectives of the company's financing policy are to ensure solvency, limit financial risks and optimize the cost of capital.

Capital structure management focuses on meeting the requirements needed to ensure unrestricted access to the capital market and a single A credit rating. Capital structure is managed using selected financial ratios, such as dynamic debt ratios, as part of the company's financial planning.

Equity of the BASF Group as reported in the balance sheet amounted to €34,338 million as of December 31, 2025 (previous year: €36,884 million); the equity ratio was 45.1% on December 31, 2025 (previous year: 45.9%).

BASF prefers to access external financing on the capital markets and, when advantageous, via bank loans. A commercial paper program is used for short-term financing, while corporate bonds are used for financing in the medium and long term. These are issued in euros and other currencies with different maturities. The goal is to create a balanced maturity profile, achieve a diverse range of investors and

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Consolidated Financial Statements

Further Information

optimize BASF's debt capital financing conditions. Since 2020, BASF has employed green corporate bonds to finance the development of sustainable products and projects with a clear environmental benefit.

BASF currently has the following credit ratings, which were last confirmed by Fitch on February 13, 2026, by Moody's on January 28, 2026, and by Standard & Poor's on December 12, 2025.

Ratings as of December 31, 2025

	Noncurrent financial indebtedness	Current financial indebtedness	Outlook
Fitch	A	F1	stable
Moody's	A3	P-2	stable
Standard & Poor's	A-	A-2	stable

Ratings as of December 31, 2024

	Noncurrent financial indebtedness	Current financial indebtedness	Outlook
Fitch	A	F1	stable
Moody's	A3	P-2	stable
Standard & Poor's	A-	A-2	stable

BASF strives for a single A credit rating, which ensures unrestricted access to financial and capital markets (for more information on BASF's financing policy, see the Combined Management's Report from page 58 onward).

26.2 Statement of cash flows

Accounting policies

Cash flows from operating activities are determined using the indirect method whereby changes in balance sheet items are adjusted for currency translation effects and changes in the scope of consolidation and thus cannot be derived directly from the consolidated balance sheet.

BASF reports interest paid and dividends received in cash flows from operating activities. Income tax payments from ongoing business are also allocated to cash flows from operating activities. In the case of material transactions, however, these are reported in the corresponding section of the statement of cash flows.

Cash flows from financing activities include payments for leases in which BASF is lessee as well as dividend payments.

Payments are netted in cash flows from investing activities and cash flows from financing activities if they are items with a high turnover rate, represent large amounts and have short-term maturities.

Explanation of the statement of cash flows

For a better presentation of significant effects, the item Gains (-) / losses (+) from disposals of noncurrent assets was supplemented to include the gains and losses from divestments. These were previously included in other noncash items. The prior-year figures were adjusted accordingly. The reclassified amounts were €796 million for 2025 and €6 million for the previous year.

Cash flows from operating activities contained the following payments:

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Statement of cash flows

Million €	2025	2024
Income taxes	-946	-966
of which income tax refunds	214	111
income tax payments	-1,160	-1,077
Interest payments	-494	-454
of which interest received	321	292
interest paid	-815	-746
Dividends received	1,401	478

Furthermore, tax payments in the amount of €264 million are included in cash flows from investing activities in 2025. Total tax payments thus amounted to €1,424 million.

In order to optimize precious metal inventories, the Group sells precious metals and concurrently enters into agreements to repurchase them at a set price. Cash flows resulting from the sale and repurchase in the amount of €340 million (previous year: -€55 million) were reported in cash flows from operating activities.

Factoring agreements in the amount of €353 million had a positive impact on cash flows from operating activities in 2025 (previous year: negative impact of €359 million).

The carrying amount of financial liabilities that are the subject of supplier financing agreements and are reported as trade accounts payable amounted to €117 million in 2025 (previous year: €80 million). Of this, an amount of €88 million was already paid by the financial services provider (previous year: €73 million). The payment terms for these liabilities ranged between 0 and 120 days, while the terms for comparable trade accounts payable that were not the subject of the agreements ranged between 0 and 60 days.

In 2025, payments for acquisitions were immaterial. By contrast, the previous year's cash flows from investing activities contained €202 million in payments for acquisitions. This included the purchase price payment of €192 million for the acquisition of one of the two MDI plants and the production facilities for the precursors aniline and nitrobenzene from the joint venture with Huntsman, Shanghai Lianheng Isocyanate Co. Ltd., Shanghai, China.

In the 2025 business year, proceeds from divestments amounted to €871 million and primarily included the sale of the Brazilian decorative paints business and the sale of the food and health performance ingredients business unit. In the prior year, proceeds from divestments amounted to €75 million and involved exclusively non-material transactions. In connection with divestitures, cash and cash equivalents in the amount of €57 million were transferred during the reporting year. No such transfers occurred in the previous year.

Payments made for property, plant and equipment and intangible assets amounted to €4,267 million, €1,930 million lower than in the previous year. This included capitalized interest in the amount of €152 million (previous year: €147 million).

In the 2025 business year, payments for investments in equity instruments were exclusively attributable to transactions of minor significance. The previous year included €598 million for the acquisition and several subsequent capital increases of the equity-accounted investment in the Nordlicht 1 and 2 wind farm projects.

The cash inflows from the disposal of equity instruments in 2025 included €80 million from the sale of BASF's 49% stake in the Nordlicht 1 and 2 wind farm projects to Vattenfall. In the previous year, this item had included the cash inflow of €1,169 million from the sale of the exploration and production business of Wintershall Dea GmbH (Wintershall Dea AG until September 23, 2024), Kassel, Germany, to Harbour

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Energy plc, London, United Kingdom, as well as a capital repayment of €556 million from Wintershall Dea.

The payments for financial assets and securities, as well as the payments received from the disposal of noncurrent assets and securities, resulted primarily from portfolio adjustments and reallocations between individual portfolios.

Cash and cash equivalents in the amount of €2,818 million (previous year: €2,921 million) consist primarily of cash on hand and bank balances with maturities of less than three months. As in the previous year, these were not subject to any utilization restrictions in 2025. However, the repatriation of funds from Russia is currently only possible to a limited extent. These amounted to €20 million as of December 31, 2025 (previous year: €20 million).

Cash and cash equivalents in the statement of cash flows may differ from the values in the balance sheet if the relevant amounts have been reclassified to the assets of disposal groups. As of December 31, 2025, the statement of cash flows reported cash and cash equivalents in the amount of €2,818 million, which included both the amount reported in the balance sheet of €2,670 million as well as the amount of €148 million reclassified to the disposal group. In the previous year, cash and cash equivalents of €2,921 million were reported in the statement of cash flows and included the amount reported in the balance sheet of €2,914 million as well as €7 million reclassified to the disposal group.

Lease payments totaled €679 million in 2025 (previous year: €679 million). The principal component of €432 million (previous year: €413 million) is presented in cash flows from financing activities. BASF reports interest payments, which amounted to €62 million (previous year: €65 million), in cash flows from operating activities. Payments in connection with short-term leases, lease payments relating to low-value assets, and variable lease payments that were not taken into account in the measurement of the lease liability amounted to €185 million in 2025 (previous year: €201 million).

Reconciliation according to IAS 7 breaks down the changes in financial and similar liabilities and their hedging transactions into cash-effective and non-cash-effective changes. The cash-effective changes presented below correspond to the figures in cash flows from financing activities.

Other financing-related liabilities primarily comprise liabilities from accounts used for cash pooling with BASF companies not included in the Consolidated Financial Statements. They are reported in miscellaneous liabilities under the balance sheet item other liabilities, in which financial instruments are presented.

Assets/liabilities from hedging transactions included in cash flows from financing activities form part of the balance sheet items derivatives with positive and negative fair values respectively and include only those transactions which hedge risks arising from financial indebtedness and financing-related liabilities secured by micro hedges.

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Combined Management's Report

Consolidated Financial Statements

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Reconciliation according to IAS 7 for 2025

Million €	Dec. 31, 2024	Non-cash-effective changes						Dec. 31, 2025
		Cash-effective in cash flows from financing activities	Acquisitions/ divestitures/ changes in the scope of consolidation	Currency effects	Additions from lease contracts	Other effects	Changes in fair value
Financial indebtedness	21,762	99	5	-667	–	-105	–	21,094
Loan liabilities	372	6	–	-1	–	8	–	385
Lease liabilities	1,665	-432	4	-78	481	-32a	–	1,608
Other financing-related liabilities	241	-5	-21	-1	–	-11	–	203
Financial and similar liabilities	24,039	-331	-13	-746	481	-141	–	23,290
Assets/liabilities from hedging transactions	-38	356	–	–	–	–	-338	-20
Total	24,001	25	-13	-746	481	-141	-338	23,270

a Includes mainly disposals from lease contracts

Reconciliation according to IAS 7 for 2024

Million €	Dec. 31, 2023	Non-cash-effective changes						Dec. 31, 2024
		Cash-effective in cash flows from financing activities	Acquisitions/ divestitures/ changes in the scope of consolidation	Currency effects	Additions from lease contracts	Other effects	Changes in fair value
Financial indebtedness	19,268	2,264	–	224	–	6	–	21,762
Loan liabilities	259	121	–	1	–	-10	–	372
Lease liabilities	1,649	-413	–	27	428	-26a	–	1,665
Other financing-related liabilities	185	2	–	–	–	54	–	241
Financial and similar liabilities	21,361	1,974	–	251	428	25	–	24,039
Assets/liabilities from hedging transactions	-47	-191	–	–	–	–	200	-38
Total	21,314	1,783	–	251	428	25	200	24,001

a Includes mainly disposals from lease contracts

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Combined Management's Report
Consolidated Financial Statements
Further Information

27 Personnel expenses and employees

Personnel expenses

Expenses for wages and salaries, social security contributions and assistance, as well as for pensions increased to €12,299 million in 2025. The increase was mainly due to a higher wage and salary level and higher additions of bonus provisions compared with 2024. This includes personnel expenses of the discontinued coatings business of €878 million in 2025 (previous year: €853 million).

Personnel expenses

Million €	2025	2024
Wages and salaries	9,936	9,022
Social security contributions and assistance expenses	1,826	1,665
Pension expenses	538	554
Personnel expenses	12,299	11,241

Number of employees

As of December 31, 2025, the number of employees decreased to 108,251 employees compared with 111,822 employees as of December 31, 2024. The decline was primarily due to departures in connection with the ongoing cost savings programs and as part of the divestiture of the Brazilian decorative paints business. The number of employees also includes 9,928 employees in the discontinued coatings business as of December 31, 2025 (previous year: 10,122 employees).

Employees of joint operations are included in the number of employees relative to BASF's share in the company. As of December 31, 2025, a total of 530 employees worked at joint operations (previous year: 1,234 employees). The decline resulted primarily from BASF taking full ownership of Alsachimie S.A.S., Chalampé, France, from mid-2025 onwards.

The development of the number of employees in the BASF Group was distributed over the regions as follows:

Number of employees as of December 31

	2025	2024
Europe	65,073	66,726
of which Germany	48,955	50,602
North America	15,652	15,969
Asia Pacific	21,592	21,971
South America, Africa, Middle East	5,934	7,156
BASF Group	108,251	111,822
of which apprentices and trainees	2,663	2,941
temporary staff	1,995	2,105

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The average number of employees was distributed over the regions as follows:

Average number of employees

	2025	2024
Europe	65,881	66,941
of which Germany	49,749	50,761
North America	15,877	16,064
Asia Pacific	21,865	21,616
South America, Africa, Middle East	6,817	7,123
BASF Group	110,440	111,744
of which apprentices and trainees	2,505	2,670
temporary staff	2,184	2,285

The average number of employees decreased to 110,440 employees in 2025, of which an average of 888 employees worked at joint operations (previous year: 1,221 employees). The reasons for the development of the number of employees described above are also decisive to the development of the average number of employees.

28 Share price-based compensation programs and BASF incentive share program

Share price-based compensation programs

The BASF Group's share price-based compensation programs, or long-term incentive (LTI) programs, are cash-settled programs. If vested, the cash-settlement obligation is measured at fair value on every balance sheet date and recognized as a provision.

In 2025, the BASF Group continued offering its share price-based compensation program (LTI program), known as Strive!, which was launched in 2020. The share price-based compensation program known as "BOP" (BASF Option Program), which had existed since 1999, was offered for the last time in 2020. All option rights granted during the BOP program years remain valid until the end of their respective exercise periods.

Generally, members of the Board of Executive Directors and all senior executives are entitled to participate in the LTI programs.

Strive!

Strive! is based on a performance share plan and takes into account the achievement of strategic goals and the development of the BASF share and dividend (total shareholder return) over a period of four years.

Participation in Strive! is voluntary for senior executives and is linked to a share ownership obligation. Strive! offers rolling eligibility, without a deadline for participation. In 2025, 596 people (previous year: 628 people) were eligible to participate in Strive!. About 96% (previous year: 93%) of eligible senior executives and the members of the Board of Executive Directors participated. Unlike for senior executives, participation is not voluntary for the members of the Board of Executive Directors and is outlined in their service contracts. The same plan conditions generally apply to members of the Board of Executive Directors.

A Strive! plan includes a four-year performance period with a fixed disbursement date. A target amount is determined at the beginning of each new Strive! plan for every participant. This target amount is converted into a preliminary number of virtual performance share units (PSUs) by dividing it by the average BASF share price in the fourth quarter of the previous year. The number of PSUs that are

BASF Report 2025

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Combined Management's Report

Consolidated Financial Statements

Further Information

ultimately paid out at the end of the performance period depends on the achievement of the relevant targets.

Achievement of each strategic target is calculated for each year of the four-year performance period. Upon conclusion of the performance period, the average degree of target achievement for each strategic target is equal to the arithmetic mean of the degrees of target achievement for the four years. The total target achievement for the respective Strive! plan is determined by adding the target achievement degree for the three strategic targets after having multiplied each by the corresponding weighting factor. To calculate the final number of PSUs, this weighted target achievement is multiplied by the preliminary number of PSUs. The payment amount upon conclusion of the four-year performance period is calculated by multiplying the final number of PSUs by the average BASF share price for the fourth quarter of the last year of the performance period, plus the accumulated dividend payments in the four fiscal years. The payment occurs in May of the following year and is capped at $200\%$ of the target amount. The payment amount therefore not only reflects achievement of the strategic targets, but performance of BASF's dividend and share price as well.

A personal investment in BASF shares is the prerequisite for participation in Strive!. Participants are required to own BASF shares amounting to a predetermined percentage of their base salary for the duration of the performance period. A set-up phase applies to first-time participants. During this period, they are required to hold a percentage of shares as their predetermined personal investment. The set-up phase for the 2025 Strive! program ends on December 31, 2028. The 2025 Strive! program has the same fundamental structure as the Strive! programs in previous years.

Fair value of PSUs and valuation parameters used as of December 31, 2025

		Strive! program of the year
		2025	2024	2023	2022
Number of PSUs granted		1,134,952	1,050,982	925,989	674,349
Number of PSUs vested		319,325	559,591	725,306	674,349
Fair value including fluctuation / PSU	€	43.18	49.12	34.03	43.09
Fair value excluding fluctuation / PSU	€	48.80	53.30	35.45	43.09
Weighted target achievement	%	108.3	108.9	66.7	77.0
Base price	€	44.58	43.94	46.45	61.82

PSUs vested by the balance sheet date were measured at fair value. Fair value is determined based on the BASF share price of €44.43 on the balance sheet date plus expected dividend payments during the term of the program and taking into account the expected target achievement rate of the respective Strive! plan. A fluctuation rate of $4\%$ is assumed for the fair value of senior executives' PSUs.

The LTI provision for Strive! decreased from €109 million as of December 31, 2024, to €97 million as of December 31, 2025, due to lower fair values. The expense from the addition to provisions totaled €37 million in 2025. This was partly offset by income from the reversal of LTI provisions totaling €5 million. Of this amount, €2 million related to the disposal group for the discontinued coatings business. In 2024, BASF Group recognized an expense from the addition to provisions of €31 million. The expiry of the four-year performance period and associated payout in May for Strive! 2021 resulted in utilization of €43 million in 2025. On the basis of preliminary degrees of target achievement, a payment amount of €26 million was recognized in current provisions for the fully vested 2022 program year.

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At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

BASF Option Program (BOP)

The "BOP" LTI program last offered in 2020 grants virtual option rights. When exercised, the option rights are settled in cash.

Participation in BOP was voluntary. In order to take part in the program, a participant had to make a personal investment: Participants were required to hold BASF shares representing between 10% and 30% of their respective variable compensation for a two-year period from the granting of the option (holding period). The number of shares to be held was determined by the amount of variable compensation and the volume-weighted average share price on the first trading day after the Annual Shareholders' Meeting.

Participants received four option rights per invested share. Each option consists of two parts, right A and right B, which may be exercised if defined thresholds have been met: The threshold of right A is met if the price of the BASF share has increased by more than 30% in comparison with the base price on the option grant date (absolute threshold). The value of right A is the difference between the market price of BASF shares on the exercise date and the base price; it is limited to 100% of the base price. Right B may be exercised (relative threshold) if the cumulative percentage performance of BASF shares exceeds the percentage performance of the MSCI World Chemicals Index™ (MSCI Chemicals). The value of right B is the base price of the option multiplied by twice the percentage by which the BASF share outperforms the MSCI Chemicals Index on the exercise date. It is limited to the closing price on the date of exercise less the calculated nominal value of the BASF share. Right B may only be exercised if the price of the BASF share equals at least the base price. When a two-year vesting period is over, options granted can be exercised until the end of the respective exercise period. During the exercise period, there are certain times (closed periods) during which the options may not be exercised. Each option can only be exercised in full, and one of the thresholds must be exceeded. If the other threshold is not exceeded, the other option right lapses. A participant's maximum gain from exercising an option is limited to five times the original individual investment. Option rights are nontransferable and are forfeited if the option holders no longer work for the BASF Group or have sold part of their individual investment before the expiry of the two-year vesting period. They remain valid in the case of retirement. For the members of the Board of Executive Directors, the long-term orientation of the program has been strengthened significantly compared with the conditions applying to the other participants. Members of the Board of Executive Directors were required to participate in the BOP program with at least 10% of their actual annual variable compensation. In view of this binding personal investment (in the form of BASF shares), an extended holding period of four years applies. Members of the Board of Executive Directors may only exercise their option rights four years after they have been granted at the earliest (vesting period).

As a result of a resolution by the Board of Executive Directors in 2002 to settle option rights in cash, all outstanding option rights under the 2018 to 2020 programs were valued at fair value as of December 31, 2025.

The number of outstanding options declined from 6,190,727 as of December 31, 2024, to 4,784,286 as of December 31, 2025, due mainly to the expiration of options from the 2017 BOP program.

The exercisable options had no intrinsic value as of December 31, 2025, or December 31, 2024.

The models used in the valuation of the option plans are based on the arbitrage-free valuation model according to Black-Scholes. The fair values of the options are determined using the binomial model. Volatility is determined on the basis of the monthly closing prices over a historical period corresponding to the remaining term of the options.

The LTI provision for BOP decreased from €20 million as of December 31, 2024, to €17 million as of December 31, 2025, due to lower fair values and a lower number of outstanding option rights. In 2024

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and in 2025, less than €1 million was utilized due to senior executives leaving the company. Income from the reduction in provisions totaled €3 million in 2025 and €30 million in 2024.

BASF “plus” incentive share program

The “plus” incentive share program was introduced in 1999 and is currently available to employees in Germany, other European countries and Mexico. Simultaneous participation in both the “plus” program and an LTI program is not permitted.

Employees who participate in BASF’s “plus” incentive share program acquire shares in BASF as a personal investment from their variable compensation. For every 10 BASF shares purchased in the program, a participant receives one BASF share at no cost after one, three, five, seven and 10 years of holding these shares. As a rule, the first and second block of 10 shares entitles the participant to receive one BASF share at no extra cost in each of the next 10 years.

The right to receive free BASF shares lapses if a participant sells the individual investment in BASF shares, if the participant stops working for a Group company or one year after retirement. The number of free shares to be granted has developed as follows:

Number of free shares to be granted

Shares	2025	2024
As of January 1	3,785,696	3,920,838
Newly acquired entitlements	533,205	585,725
Bonus shares issued	-642,940	-567,516
Lapsed entitlements	-183,830	-153,351
As of December 31	3,492,131	3,785,696

The free shares to be provided by the company are measured at the fair value on the grant date. Fair value is determined on the basis of the BASF share price, taking into account the present value of dividends, which are not paid during the term of the program. The weighted-average fair value on the grant date amounted to €42.43 for the 2025 program, and €48.42 for the 2024 program.

The fair value of the free shares to be granted is recognized as an expense with a corresponding increase in capital reserves over the term of the program.

Personnel expenses for BASF’s “plus” incentive share program totaled €20 million in 2025 and €24 million in 2024.

29 Compensation of the Board of Executive Directors and Supervisory Board

Compensation of the Board of Executive Directors according to IFRS

Million €	2025	2024
Short-term non-performance-related and performance-related compensation of the Board of Executive Directors	14.6	14.5
Share-based compensation	-3.0	4.2
Termination benefits	–	–
Other long-term benefits	–	–
Service costs for members of the Board of Executive Directors	1.8	1.9
Total compensation of the Board of Executive Directors	13.4	20.6

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Compensation of the Board of Executive Directors and Supervisory Board according to section 314(1) no. 6 of the German Commercial Code (HGB)

Million €	2025	2024
Non-performance-related and performance-related compensation of the Board of Executive Directors	14.6	14.5
Fair value of performance share units allocated to the Board of Executive Directors in the fiscal year as of allocation date	10.3	12.1
Total compensation of the Board of Executive Directors	24.9	26.6
Compensation of the Supervisory Board	3.5	3.4
Total compensation of former members of the Board of Executive Directors and their surviving dependents	13.1	12.4
Pension provisions for former members of the Board of Executive Directors and their surviving dependents	180.5	179.9

Total compensation for the Board of Executive Directors and the Supervisory Board according to IAS 24.17 amounted to €16.9 million in 2025 (previous year: €24.0 million).

In 2025, members of the Board of Executive Directors were allocated 251,237 performance share units (PSUs) under the Long-Term-Incentive (LTI) plan (previous year: 260,569 PSUs) (for more information on the LTI plans, see Note 28 from page 413 onward).

» The Compensation Report will be available at basf.com/compensationreport.

30 Related party transactions

Related parties are legal or natural entities that can exert influence on the BASF Group or over which the BASF Group exercises control or joint control, or a significant influence. These primarily include nonconsolidated subsidiaries, joint ventures and associated companies as well as BASF SE's Board of Executive Directors and Supervisory Board.

The following tables show the volume of business with related parties that are included in the Consolidated Financial Statements at amortized cost or accounted for using the equity method. Transactions with related parties are carried out under normal market conditions. The figures also include sales, receivables, other receivables as well as liabilities and other liabilities that are assigned to the discontinued operations.

Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products and merchandise, agency and licensing businesses, and other operating businesses.

Other receivables and liabilities primarily arose from financing activities, from accounts used for cash pooling, outstanding dividend payments, profit and loss transfer agreements, and other finance-related and operating activities and transactions.

The decrease in other receivables from nonconsolidated subsidiaries resulted primarily from other finance-related receivables.

The decrease in other liabilities to nonconsolidated subsidiaries as well as joint ventures resulted from other finance-related liabilities and contract liabilities.

Balances outstanding to related parties were generally not secured and were settled in cash.

The balance of valuation allowances on other receivables from nonconsolidated subsidiaries declined from €120 million as of December 31, 2024, to €117 million as of December 31, 2025. The addition to

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Further Information

valuation allowances on other receivables from nonconsolidated subsidiaries was recognized as an expense in the amount of €0 million (previous year: €8 million).

The balance of valuation allowances on trade accounts receivable from nonconsolidated subsidiaries decreased from €4 million as of December 31, 2024, to €3 million as of December 31, 2025. The balance of valuation allowances on trade accounts receivable from joint ventures declined from €3 million as of December 31, 2024, to €0 million as of December 31, 2025. The addition to valuation allowances on trade accounts receivable from nonconsolidated subsidiaries as well as joint ventures was €0 million in both 2025 and 2024.

BASF had obligations from guarantees and other financial obligations in favor of nonconsolidated subsidiaries in the amount of €1 million as of December 31, 2025, and €5 million as of December 31, 2024, in favor of joint ventures in the amount of €19 million as of December 31, 2025, and €42 million as of December 31, 2024, and in favor of associated companies in the amount of €1 million as of December 31, 2025, and €3 million as of December 31, 2024.

Obligations arising from purchase contracts with joint ventures amounted to €2,655 million as of December 31, 2025, and €2,943 million as of December 31, 2024. In both years, the obligations mainly resulted from power purchase agreements.

Annual minimum rental payments for an office building including a parking area payable by BASF SE to BASF Pensionskasse VVaG for the nonterminable basic rental period until 2029 amounted to €8 million (previous year: €8 million). Furthermore, there were financial liabilities with BASF Pensionskasse VVaG amounting to €337 million as of December 31, 2025 (previous year: €266 million). BASF SE had other finance-related receivables from BASF Pensionskasse VVaG in the amount of €80 million as of December 31, 2025, and as of December 31, 2024.

Sales with related parties

	Supplies and services rendered		Supplies and services received
Million €	2025	2024	2025	2024
Nonconsolidated subsidiaries	980	1,212	359	405
Joint ventures	667	655	1,590	1,070
Associated companies	129	136	124	193

The increase in supplies and services rendered by joint ventures is attributable to higher volumes. The decrease in supplies and services received from associated companies is primarily attributable to the disposal of two associated companies.

Trade accounts receivable from / trade accounts payable to related parties

	Accounts receivable, trade		Accounts payable, trade
Million €	December 31, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Nonconsolidated subsidiaries	338	417	77	92
Joint ventures	71	97	103	104
Associated companies	32	20	15	30

Other receivables from / liabilities to related parties

	Other receivables		Other liabilities
Million €	December 31, 2025	December 31, 2024	December 31, 2025	December 31, 2024
Nonconsolidated subsidiaries	151	224	185	227
Joint ventures	29	25	15	86
Associated companies	30	30	4	15

BASF Report 2025

Notes

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

There were no reportable related party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties in 2025 other than those presented in Note 29 (from page 416 onward).

» The Compensation Report will be available at basf.com/compensationreport.

31 Services provided by the external auditor

BASF Group companies used the following services from Deloitte:

Services provided by the external auditor

Million €	2025	of which Deloitte GmbH Wirtschaftsprüfungs-gesellschaft, Germany
Audit services	28	10
Audit-related services	7	7
Tax consultation services	-	-
Other services	-	-
Total	35	17

The services provided by the external auditor mainly included services for the audit and, to a lesser extent, other audit-related services.

The fees for audit services related to expenses for the audit of the Consolidated Financial Statements of the BASF Group, the Financial Statements of BASF SE and of the subsidiaries and joint operations included in the Consolidated Financial Statements and the review of the half-year financial report.

Fees for audit-related services primarily included voluntary audits in connection with the divestment of the coatings business, confirmation services relating to sustainability reporting, other audits based on regulatory requirements, as well as other voluntary confirmation services.

BASF Report 2025

Notes

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

32 Declaration of Conformity with the German Corporate Governance Code

Declaration pursuant to section 161 of the German Stock Corporation Act (AktG)

The annual Declaration of Conformity with the German Corporate Governance Code according to section 161 AktG was submitted by the Board of Executive Directors and the Supervisory Board of BASF SE in December 2025 and is published online.

> For more information, see basf.com/en/corporate governance

33 Non-adjusting events after the balance sheet date

On January 13, 2026, BASF announced that it had reached an agreement with the private equity firm Paine Schwartz Partners and other shareholders to acquire their portfolio company AgBiTech, Brisbane, Australia. AgBiTech specializes in biological insect control solutions. The transaction is structured as a share deal and includes all assets such as portfolio, intellectual property rights, production sites, research and development facilities and employees. The transaction is expected to close in the first half of 2026, subject to approval by the competent authorities. The activities will then be reported in the Agricultural Solutions operating division.

BASF Report 2025
Notes | 420

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

3

BASF Report 2025

Further Information

Further Information	421
External Audit	422
Statement by the Board of Executive Directors	423
Independent Auditor's Report	424
Assurance Report in Relation to the Combined Sustainability Statement	433
Report of the Supervisory Board	437
Selected Key Figures Excluding Precious and Base Metals	446
Glossary	447
Trademarks	450

BASF Report 2025
Further Information | 421

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

External Audit

Our reporting is independently audited by third parties. The appointed auditor, Deloitte GmbH Wirtschaftsprüfungsgesellschaft, has audited the BASF Group Consolidated Financial Statements and the Combined Management's Report and has issued an unmodified audit opinion. The Auditor's Report can be found from page 424 onward of this report. With regard to the Combined Sustainability Statement prepared by BASF SE in accordance with the ESRS adopted by way of Commission Delegated Regulation (EU) 2023/2772, which also includes the disclosures required under Article 8 of Regulation (EU) 2020/852 (EU taxonomy), Deloitte GmbH Wirtschaftsprüfungsgesellschaft has performed a limited assurance engagement in accordance with ISAE 3000 (revised). The audit of the Management's Report, which was performed by the auditor as a reasonable assurance audit, included disclosures on $\mathrm{CO}_{2}$ emissions (Scope 1 and 2) as a steering-relevant key performance indicator. Within the scope of the audit of the annual financial statements, the auditor checked pursuant to section 317(2) sentence 4 HGB that the Nonfinancial Statement (NFS) for BASF SE was presented in accordance with the statutory requirements. A reproduction of the assurance report can be found from page 433 onward of this report.

The information contained in this report incorporates elements of IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board (ISSB). None of the aforementioned information (IFRS S1 and S2) was included in the audit of sustainability reporting performed by Deloitte GmbH Wirtschaftsprüfungsgesellschaft.

BASF Report 2025

Further Information

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Declaration of the Board of Executive Directors and Assurance Pursuant to Sections 297(2) and 315(1) of the German Commercial Code (HGB)

The Board of Executive Directors of BASF SE is responsible for preparing the Consolidated Financial Statements and Combined Management's Report of the BASF Group.

The BASF Group Consolidated Financial Statements for 2025 were prepared according to IFRS® Accounting Standards, as adopted by the European Union, as well as the IFRS® Accounting Standards in the version adopted by the International Accounting Standards Board (IASB), London.

We have established effective internal control and steering systems in order to ensure that the BASF Group's Combined Management's Report and Consolidated Financial Statements comply with applicable accounting rules and to ensure proper corporate reporting.

The internal control and risk management system we have set up is specifically designed to enable the Board of Executive Directors to identify material risks early on and take appropriate defensive measures as necessary. The appropriateness and effectiveness of the internal control and risk management system are continually audited throughout the Group by our Corporate Audit department.

To the best of our knowledge, and in accordance with the applicable reporting rules, the Consolidated Financial Statements of the BASF Group give a true and fair view of the net assets, financial position and results of operations of the Group, and the Combined Management's Report of the BASF Group includes a fair review of the development and performance of the business as well as position of the BASF Group, together with a description of the principal opportunities and risks associated with the expected development of the BASF Group.

Ludwigshafen am Rhein, February 23, 2026

Dr. Markus Kamieth
Chairman of the Board of Executive Directors

Dr. Dirk Elvermann
Chief Financial Officer

Michael Heinz

Anup Kothari
Dr. Stephan Kothrade
Dr. Katja Scharpwinkel

BASF Report 2025
Further Information | 423

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Independent Auditor’s Report

To BASF SE, Ludwigshafen am Rhein/Germany

Report on the Audit of the Consolidated Financial Statements and the Combined Management Report

Audit Opinions

We have audited the consolidated financial statements of BASF SE, Ludwigshafen am Rhein/Germany, and its subsidiaries (the Group) which comprise the balance sheet as at December 31, 2025, the statement of income, the statement of income and expenses recognized in equity, the statement of cash flows, the statement of changes in equity for the financial year from January 1 to December 31, 2025 and the notes to the consolidated financial statements, including material accounting policy information. We have not audited the content of the remuneration report in accordance with Section 162 German Stock Corporation Act (AktG) referenced in section “(29) Compensation of the Board of Executive Directors and Supervisory Board” of the notes to the consolidated financial statements, nor have we audited the content of the cross-references included in the notes to the consolidated financial statements, including references to websites and the information to which these cross-references refer. In addition, we have audited the combined management report for the parent and the group of BASF SE, Ludwigshafen am Rhein/Germany, for the financial year from January 1 to December 31, 2025. In accordance with the German legal requirements, we have not audited the content of the sustainability statement included in the combined management report and the corporate governance statement in accordance with Section 289f and Section 315d German Commercial Code (HGB). In addition, we have not audited the content of the remuneration report, which is referenced in the combined management report, nor the disclosures extraneous to management reports that are marked as unaudited included in the combined management report nor any cross-references included in the combined management report, including references to websites and the information to which these cross-references refer.

In our opinion, on the basis of the knowledge obtained in the audit,

the accompanying consolidated financial statements comply, in all material respects, with the IFRS® Accounting Standards issued by the International Accounting Standards Board (IASB) (hereafter “IFRS Ac-counting Standards”) as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB and, in compliance with these requirements, give a true and fair view of the assets, liabilities and financial position of the Group as at December 31, 2025 and of its financial performance for the financial year from January 1 to December 31, 2025; our audit opinion on the consolidated financial statements does not cover the content of the remuneration report and the cross-references mentioned above including the related information; and
the accompanying combined management report as a whole provides an appropriate view of the Group’s position. In all material respects, this combined management report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our audit opinion on the combined management report neither covers the content of the statements mentioned above, the remuneration report, nor the disclosures extraneous to combined management report marked as unaudited and the cross-references mentioned above including the related information.

Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the combined management report.

BASF Report 2025
Independent Auditor’s Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Basis for the Audit Opinions

We conducted our audit of the consolidated financial statements and of the combined management report in accordance with Section 317 HGB and the EU Audit Regulation (No. 537/2014; referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW). Our responsibilities under those requirements and principles are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report" section of our auditor's report. We are independent of the group of entities in accordance with the requirements of European law and German commercial and professional law and of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA Code), and we have fulfilled our other German professional responsibilities in accordance with these requirements and the IESBA Code. In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the combined management report.

Key Audit Matters in the Audit of the Consolidated Financial Statements

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from January 1 to December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.

In the following, we present the key audit matters we have determined in the course of our audit:

Recoverability of goodwill
Recoverability of certain assets within property, plant and equipment

Our presentation of these key audit matters has been structured as follows:

a) description (including reference to corresponding disclosures in the consolidated financial statements)
b) auditor's response

1. Recoverability of goodwill

a) As at December 31, 2025, goodwill of mEUR 6,553 (8.6% of total assets) is recognized under the balance sheet item "intangible asset" in the consolidated financial statements of BASF SE. The executive directors of BASF SE perform annual impairment tests for goodwill according to IAS 36, at the level of the cash-generating units or groups of cash-generating units. If an indication exists that a cash-generating unit or a group of cash-generating units may be impaired, an impairment test is performed outside the regular cycle.

Goodwill is tested for impairment by comparing the carrying amounts of the cash generating units with the respective recoverable amounts. Such determination is based on present value-oriented methods as usually there are no externally available market values for the individual cash-generating units or the groups of cash-generating units. The recoverable amounts were calculated using discounted cash flow models. The present value of the future cash flows is based on the most recent budgets/ forecasts approved by management, which are extrapolated using long-term growth rates. The discounting of cash flows is based on the weighted average cost of capital of the respective cash-generating unit. With respect to fiscal year 2025 no impairment for goodwill was identified.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The executive directors mainly exercise judgment within the determination of the parameters used to forecast future cash flows in the detailed planning period, the assumptions for the long-term growth rates and for the determination of the cost of capital. These assumptions have a significant impact on the determination of the recoverable amounts.

The impairment tests to be carried out on goodwill are complex and require a considerable level of judgment of the executive directors. Therefore, the impairment test of goodwill was of particular importance in the context of our audit. This was particularly the case for the cash-generating unit Battery Materials, as changes in valuation parameters, which were considered possible based on current market developments, could lead to a need for impairment within these cash-generating units.

The executive directors' disclosures on goodwill are included in the sections "(1.4) Accounting policies" and "(14.1) Explanation of intangible assets" of the notes.

b) During our audit, we evaluated the executive directors' approach in carrying out the impairment tests. In a first step, we obtained an understanding of the process implemented by the executive directors to carry out impairment tests. In addition, for controls relevant to the audit we evaluated the design of the controls and determined whether they had been implemented. We assessed the discounted cash flow models used by management with regards to methodical appropriateness and mathematical accuracy. We examined whether the cash flows used in the valuations are consistent with, or have been logically derived from, the budgets/forecasts approved by management. We evaluated the reasonableness of the relevant assumptions underlying the budgets/forecasts made by the executive directors on the basis of macroeconomic and industry-specific market data, as well as explanations provided by the executive directors. We also assessed the appropriateness of the methodology used for the derivation of the weighted average cost of capital and the appropriateness of the amount of the weighted average cost of capital. To address the risk inherent to the uncertainty of the forecast, we examined the impact on the recoverable amounts of possible variations in relevant valuation parameters by evaluating the calculation of alternative scenarios (sensitivity analysis). As part of the audit of the impairment tests of goodwill, we used the work of our internal valuation specialists and, with their support, assessed whether the methods applied, assumptions made, and data used by the executive directors were reasonable.

Recoverability of certain assets within property, plant and equipment

a) The operating business of the BASF Group is asset-intensive, therefore property, plant and equipment is of great relevance to the consolidated financial statements. As at December 31, 2025, property, plant and equipment amounting to mEUR 25,405 (33.4% of total assets) was recognized in the consolidated financial statements of BASF SE. Impairments amounting to mEUR 414 were recognized on property, plant and equipment in the financial year, which related in particular to the Chemicals, Materials, and Nutrition & Care segments in North America and Europe.

Property, plant and equipment is generally recognized at cost less accumulated depreciation. An impairment of property, plant and equipment is recognized when the recoverable amount is less than the carrying amount. If there are indications for an impairment, the recoverable amount of property, plant and equipment is determined on the basis of the value in use. Such determination is based on present value-oriented methods due to the fact that market values are usually not available for the individual items of property, plant and equipment.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The impairment tests are complex, and their results are highly dependent on estimates and judgments made by the executive directors. The assumptions to be made by the executive directors are, among other things, made individually for each plant in terms of production volumes as well as prices and expected demand. In light of the aspects explained above and the associated risk of material misstatements regarding assets, liabilities, financial position and financial performance, auditing for impairment of certain assets within property, plant and equipment for which indicators of potential impairment have been identified, was of particular importance to our audit. The information provided by the executive directors on property, plant and equipment is disclosed in the notes to the consolidated financial statements in the sections “(1.4) Accounting policies” and “(14.2) Explanation of property, plant and equipment”.

b) As part of our audit, we first obtained a process understanding of the identification of indicators for an impairment and the valuation of property, plant and equipment by the executive directors. For internal controls relevant to the audit, we evaluated the design of the controls and determined whether they had been implemented. As part of our audit of the impairment tests, we assessed the discounted cash flow models used by the executive directors with regards to methodical appropriateness and mathematical accuracy. For certain assets within property, plant and equipment we evaluated the reasonableness of the material assumptions underlying the budgets/forecasts made by the executive directors on the basis of macroeconomic and industry-specific market data, as well as explanations provided by the executive directors, and assessed whether the future cash flows used in the calculation were properly derived from the budgets/forecasts. We also assessed the appropriateness of the methodology used for the derivation of the weighted average cost of capital and the appropriateness of the amount of the weighted average cost of capital. As part of the audit of the impairment tests of certain assets within property, plant and equipment, we used the work of our internal valuation specialists and, with their support, assessed whether the methods applied, assumptions made, and data used by the executive directors were reasonable.

Other information

The executive directors and/or the supervisory board are responsible for the other information. The other information comprises

the report of the supervisory board,
the sustainability statement,
the remuneration report, which is referenced in the combined management report as well as in the consolidated financial statements,
the corporate governance statement,
the disclosures extraneous to management reports marked as unaudited and cross-references with the related information included in the combined management report
the cross-references with the related information included in the notes to the consolidated financial statements,
the executive directors' confirmations in accordance with Section 297 (2) sentence 4 and Section 315 (1) sentence 5 HGB regarding the consolidated financial statements and the combined management report, and
all other parts of the annual report,
but not the consolidated financial statements, not the audited content of the combined management report and not our auditor's report thereon.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The supervisory board is responsible for the report of the supervisory board. The executive directors and the supervisory board are responsible for the statement according to Section 161 AktG concerning the German Corporate Governance Code, which is part of the corporate governance statement, and for the remuneration report. Otherwise, the executive directors are responsible for the other information.

Our audit opinions on the consolidated financial statements and on the combined management report do not cover the other information, and consequently we do not express an audit opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information identified above and, in doing so, to consider whether the other information

is materially inconsistent with the consolidated financial statements, with the audited content of the combined management report or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.

Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated Financial Statements and the Combined Management Report

The executive directors are responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB, and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the Group. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of assets) or error.

In preparing the consolidated financial statements, the executive directors are responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.

Furthermore, the executive directors are responsible for the preparation of the combined management report that as a whole provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive directors are responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the combined management report.

The supervisory board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and of the combined management report.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the combined management report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our audit opinions on the consolidated financial statements and on the combined management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this combined management report.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also

identify and assess the risks of material misstatement of the consolidated financial statements and of the combined management report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures relevant to the audit of the combined management report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an audit opinion on the effectiveness of these internal control or these arrangements and measures of the Group.
evaluate the appropriateness of accounting policies used by the executive directors and the reasonableness of estimates made by the executive directors and related disclosures.
conclude on the appropriateness of the executive directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the combined management report or, if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.
evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRS Accounting Standards as adopted by the EU and with the additional requirements of German commercial law pursuant to Section 315e (1) HGB.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

plan and perform the audit of the consolidated financial statements in order to obtain sufficient appropriate audit evidence regarding the financial information of the entities or of the business activities within the Group, which serves as a basis for forming audit opinions on the consolidated financial statements and on the combined management report. We are responsible for the direction, supervision and review of the audit procedures performed for the purposes of the group audit. We remain solely responsible for our audit opinions.
evaluate the consistency of the combined management report with the consolidated financial statements, its conformity with German law, and the view of the Group's position it provides.
perform audit procedures on the prospective information presented by the executive directors in the combined management report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by the executive directors as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate audit opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We provide those charged with governance with a statement that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards applied to eliminate independence threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the current period and are therefore the key audit matters. We describe these matters in the auditor's report unless law or regulation precludes public disclosure about the matter.

Other Legal and Regulatory Requirements

Report on the Audit of the Electronic Reproductions of the Consolidated Financial Statements and of the Combined Management Report Prepared for Publication Pursuant to Section 317 (3a) HGB

Assurance Opinion

We have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable assurance whether the electronic reproductions of the consolidated financial statements and of the combined management report (hereinafter referred to as "ESEF documents") prepared for publication, contained in the file, which has the SHA-256 value 3c1b2332a430f66a2a07cc308ccaff95d52565fb5f0ed9bf6aa5f209cbfdecb7, meet, in all material respects, the requirements for the electronic reporting format pursuant to Section 328 (1) HGB ("ESEF format"). In accordance with the German legal requirements, this assurance work only covers the conversion of the information contained in the consolidated financial statements and the combined management report into the ESEF format, and therefore covers neither the information contained in these electronic reproductions nor any other information contained in the file identified above.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

In our opinion, the electronic reproductions of the consolidated financial statements and of the combined management report prepared for publication contained in the file identified above meet, in all material respects, the requirements for the electronic reporting format pursuant to Section 328 (1) HGB. Beyond this assurance opinion and our audit opinions on the accompanying consolidated financial statements and on the accompanying combined management report for the financial year from January 1 to December 31, 2025 contained in the "Report on the Audit of the Consolidated Financial Statements and of the Combined Management Report" above, we do not express any assurance opinion on the information contained within these electronic reproductions or on any other information contained in the file identified above.

Basis for the Assurance Opinion

We conducted our assurance work on the electronic reproductions of the consolidated financial statements and of the combined management report contained in the file identified above in accordance with Section 317 (3a) HGB and on the basis of the IDW Assurance Standard: Assurance Work on the Electronic Reproductions of Financial Statements and Management Reports Prepared for Publication Purposes Pursuant to Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibilities in this context are further described in the "Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents" section. Our audit firm has applied the requirements of the IDW Quality Management Standards.

Responsibilities of the Executive Directors and the Supervisory Board for the ESEF Documents

The executive directors of the Company are responsible for the preparation of the ESEF documents based on the electronic files of the consolidated financial statements and of the combined management report according to Section 328 (1) sentence 4 no. 1 HGB and for the tagging of the consolidated financial statements according to Section 328 (1) sentence 4 no. 2 HGB.

In addition, the executive directors of the Company are responsible for such internal control that they have considered necessary to enable the preparation of ESEF documents that are free from material intentional or unintentional non-compliance with the requirements for the electronic reporting format pursuant to Section 328 (1) HGB.

The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part of the financial reporting process.

Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents

Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise professional judgment and maintain professional skepticism throughout the audit. We also

identify and assess the risks of material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our assurance opinion.
obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.
evaluate the technical validity of the ESEF documents, i.e., whether the file containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815, in the version in force at the balance sheet date, on the technical specification for this electronic file.
evaluate whether the ESEF documents enable an XHTML reproduction with content equivalent to the audited consolidated financial statements and to the audited combined management report.

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, in the version in force at the balance sheet date, enables an appropriate and complete machine-readable XBRL copy of the XHTML reproduction.

Further Information Pursuant to Article 10 of the EU Audit Regulation

We were elected as group auditor by the general meeting on May 2, 2025. We were engaged by the supervisory board on September 19, 2025. We have been the group auditor of BASF SE, Ludwigshafen am Rhein/Germany, since the financial year 2024.

We declare that the audit opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

Other Matter – Use of the Auditor’s Report

Our auditor’s report must always be read together with the audited consolidated financial statements and the audited combined management report as well as with the assured ESEF documents. The consolidated financial statements and the combined management report converted into the ESEF format – including the versions to be submitted for inclusion in the Company Register – are merely electronic reproductions of the audited consolidated financial statements and the audited combined management report and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are to be used solely together with the assured ESEF documents made available in electronic form.

German Public Auditor Responsible for the Engagement

The German Public Auditor responsible for the engagement is Michael Mehren.

Frankfurt am Main/Germany, February 24, 2026

Deloitte GmbH

Wirtschaftsprüfungsgesellschaft

Signed: Kirsten Gräbner-Vogel
Wirtschaftsprüferin
(German Public Auditor)

Signed: Michael Mehren
Wirtschaftsprüfer
(German Public Auditor)

BASF Report 2025
Independent Auditor's Report

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Assurance Report in Relation to the Combined Sustainability Statement

To BASF SE, Ludwigshafen am Rhein/Germany

Assurance Report of the Independent German Public Auditor on a Limited Assurance Engagement in Relation to the Combined Sustainability Statement

Assurance Conclusion

We have conducted a limited assurance engagement on the Sustainability Statement of BASF SE, Ludwigshafen am Rhein/Germany, combining the Consolidated Sustainability Statement and the Non-Financial Statement of the parent, included in section “(Consolidated) Sustainability Statement” of the combined management report for the parent and the group, for the financial year from January 1, 2025 to December 31, 2025 (hereafter referred to as “the Combined Sustainability Statement”). The Combined Sustainability Statement was prepared to fulfill the requirements of Directive (EU) 2022/2464 of the European Parliament and of the Council of December 14, 2022 (Corporate Sustainability Reporting Directive, CSRD) and Article 8 of Regulation (EU) 2020/852 and Sections 289b to 289e, 315b and 315c German Commercial Code (HGB) for a combined non-financial statement.

Not subject to our assurance engagement are

the references to information of the Company outside of the combined management report marked as unassured, and
the following references in the Combined Sustainability Statement to assurance reports or long-form reports of other practitioners in relation to the assurance of information from sources within the value chain contained in the Combined Sustainability Statement:
Environmental impact assessments by independent third parties at selected sites
Sustainability assessments by EcoVadis
Audits / online assessments by TfS (Together for Sustainability) and
ISO certifications issued by external audit firms (ISO 27001, ISO/IEC 27001:2017, ISO 9001, ISO 50001, ISO 14040, ISO 14044, ISO 14067).

Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the Combined Sustainability Statement is not prepared, in all material respects, in accordance with the requirements of the CSRD and Article 8 of Regulation (EU) 2020/852, Sections 289b to 289e, 315b and 315c HGB for a combined non-financial statement, and the specifying criteria presented by the executive directors of the Company. This assurance conclusion includes that nothing has come to our attention that causes us to believe

that the Consolidated Sustainability Statement included in the accompanying Combined Sustainability Statement does not comply, in all material respects, with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the entity to identify information to be included in the Consolidated Sustainability Statement (the materiality assessment) is not, in all material respects, in accordance with the description set out in section “General disclosures” of the Consolidated Sustainability Statement, or
that the disclosures in the Combined Sustainability Statement do not comply, in all material respects, with Article 8 of Regulation (EU) 2020/852.

We do not express an assurance conclusion on the above-mentioned parts of the Combined Sustainability Statement that were not covered by our assurance engagement.

BASF Report 2025
Assurance Report in Relation to the Combined Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Basis for the Assurance Conclusion

We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): "Assurance Engagements Other Than Audits or Reviews of Historical Financial Information", issued by the International Auditing and Assurance Standards Board (IAASB).

The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our responsibilities under ISAE 3000 (Revised) are further described in section "German Public Auditor's Responsibilities for the Assurance Engagement on the Combined Sustainability Statement".

We are independent of the entity in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. Our audit firm has applied the requirements of the IDW Quality Management Standards and of the International Standard on Quality Management (ISQM) 1 issued by the IAASB. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusion.

Responsibilities of the Executive Directors and the Supervisory Board for the Combined Sustainability Statement

The executive directors are responsible for the preparation of the Combined Sustainability Statement in accordance with the requirements of the CSRD and the applicable German legal and other European requirements as well as with the specifying criteria presented by the executive directors of the Company and for designing, implementing and maintaining such internal control as they have considered necessary to enable the preparation of a combined sustainability statement in accordance with these requirements that is free from material misstatement, whether due to fraud (i.e., fraudulent reporting in the Combined Sustainability Statement) or error.

This responsibility of the executive directors includes establishing and maintaining the materiality assessment process, selecting and applying appropriate reporting policies for preparing the Combined Sustainability Statement as well as making assumptions and estimates and ascertaining forward-looking information for individual sustainability-related disclosures.

The supervisory board is responsible for overseeing the process for the preparation of the Combined Sustainability Statement.

Inherent Limitations in Preparing the Combined Sustainability Statement

The CSRD and the applicable German legal and other European requirements contain wording and terms that are subject to considerable interpretation uncertainties and for which no authoritative comprehensive interpretations have yet been published. Therefore, the executive directors have disclosed their interpretation of such wording and terms in the Combined Sustainability Statement.

BASF Report 2025
Assurance Report in Relation to the Combined Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The executive directors are responsible for the reasonableness of these interpretations. As such wording and terms may be interpreted differently by regulators or courts, the legality of measurements or evaluations of the sustainability matters based on these interpretations is uncertain. The quantification of non-financial performance indicators disclosed in the Combined Sustainability Statement is also subject to inherent uncertainties.

These inherent limitations also affect the assurance engagement on the Combined Sustainability Statement.

German Public Auditor’s Responsibilities for the Assurance Engagement on the Combined Sustainability Statement

Our objective is to express a limited assurance conclusion, based on the assurance engagement we have conducted, on whether any matters have come to our attention that cause us to believe that the Combined Sustainability Statement has not been prepared, in all material respects, in accordance with the CSRD, the applicable German legal and other European requirements and the specifying criteria presented by the executive directors of the Company and to issue an assurance report that includes our assurance conclusion on the Combined Sustainability Statement.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism. We also

obtain an understanding of the process used to prepare the Combined Sustainability Statement, including the materiality assessment process carried out by the entity to identify the disclosures to be reported in the Combined Sustainability Statement.
identify disclosures where a material misstatement due to fraud or error is likely to arise, design and perform procedures to address these disclosures and obtain limited assurance to support the assurance conclusion. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. In addition, the risk of not detecting a material misstatement in information obtained from sources not within the entity's control (value chain information) is ordinarily higher than the risk of not detecting a material misstatement in information obtained from sources within the entity's control, as both the entity's executive directors and we as practitioners are ordinarily subject to restrictions on direct access to the sources of the value chain information.
consider the forward-looking information, including the appropriateness of the underlying assumptions. There is a substantial unavoidable risk that future events will differ materially from the forward-looking information.

Summary of the Procedures Performed by the German Public Auditor

A limited assurance engagement involves the performance of procedures to obtain evidence about the sustainability information. The nature, timing and extent of the selected procedures are subject to our professional judgment.

In performing our limited assurance engagement, we

evaluated the suitability of the criteria as a whole presented by the executive directors in the Combined Sustainability Statement.
inquired of the executive directors and relevant employees involved in the preparation of the Combined Sustainability Statement about the preparation process, including the materiality assessment process carried out by the entity to identify the disclosures to be reported in the Combined Sustainability Statement, and about the internal controls relating to this process.
evaluated the reporting policies used by the executive directors to prepare the Combined Sustainability Statement.

BASF Report 2025
Assurance Report in Relation to the Combined Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

evaluated the reasonableness of the estimates and related information provided by the executive directors. If, in accordance with the ESRS, the executive directors estimate the value chain information to be reported for a case in which the executive directors are unable to obtain the information from the value chain despite making reasonable efforts, our assurance engagement is limited to evaluating whether the executive directors have undertaken these estimates in accordance with the ESRS and assessing the reasonableness of these estimates, but does not include identifying information in the value chain that the executive directors were unable to obtain.
performed analytical procedures or tests of details and made inquiries in relation to selected information in the Combined Sustainability Statement.
conducted site visits.
considered the presentation of the information in the Combined Sustainability Statement.
considered the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Combined Sustainability Statement.

Restriction of Use

We issue this report as stipulated in the engagement letter agreed with the Company (including the "General Engagement Terms for Wirtschaftsprüferinnen, Wirtschaftsprüfer and Wirtschaftsprüfungs-gesellschaften (German Public Auditors and Public Audit Firms)" dated January 1, 2024 of the Institut der Wirtschaftsprüfer (IDW)). We draw attention to the fact that the assurance engagement was conducted for the Company's purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. Consequently, it may not be suitable for any other than the aforementioned purpose. Accordingly, the report is not intended to be used by third parties as a basis for making (financial) decisions.

Our responsibility is to the Company alone. We do not accept any responsibility to third parties. Our assurance conclusion is not modified in this respect.

Frankfurt am Main/Germany, February 24, 2026

Deloitte GmbH
Wirtschaftsprüfungsgesellschaft

Signed: Michael Mehren
Wirtschaftsprüfer
(German Public Auditor)

Signed: Daniel Oehlmann
Wirtschaftsprüfer
(German Public Auditor)

BASF Report 2025
Assurance Report in Relation to the Combined Sustainability Statement

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Report of the Supervisory Board

Dear Shareholder,

In the 2025 business year, BASF SE's Supervisory Board continued to regularly monitor management by the Board of Executive Directors and provided ongoing advice on the company's strategic development as well as key individual measures. This was done in continuous dialog with the Board of Executive Directors.

Monitoring and consultation in an ongoing dialog with the Board of Executive Directors

The Supervisory Board exercised its duties in full as required by law, the Statutes and the Rules of Procedure and was regularly informed in detail by the Board of Executive Directors as part of its monitoring and advisory activities. This occurred both during and outside of the meetings of the Supervisory Board and its committees in the form of written and oral reports from the Board of Executive Directors. In this way, the Supervisory Board was always fully informed about business developments, including the major financial key performance indicators of the BASF Group and its segments. There was a regular exchange of information on macroeconomic developments and the economic situation in the sales and procurement markets as well as on deviations in the course of business from the plans. Furthermore, the Supervisory Board addressed fundamental questions of strategic planning, including financial, investment, sales volumes and personnel planning, as well as measures for designing the future of research and development. The particular focus was on the implementation of the "Winning Ways" strategy introduced in 2024. Another key focus was on discussion of the political and regulatory conditions and trends in key markets and customer industries. Likewise, the topics of sustainability and governance, as well as occupational and process safety, were discussed in detail with the Board of Executive Directors in our meetings. The further development of the organization and processes to increase the competitiveness of BASF and its core businesses as well as standalone businesses was also discussed in depth. There was a particular focus on the sale of the coatings business and the preparations for the legal independence of the Agricultural Solutions division for a planned partial IPO. Within the scope of its activities, the Supervisory Board was convinced of the lawfulness, expediency and propriety of the Board of Executive Directors' company leadership.

The Chairman of the Supervisory Board and the Chairman of the Board of Executive Directors were also in regular contact outside of Supervisory Board meetings. The Chairman of the Supervisory Board was always promptly and comprehensively informed of current developments and significant individual matters. The Supervisory Board was directly involved in decisions of material importance at an early stage and discussed them in detail with the Board of Executive Directors. In some cases following preparatory work by its committees, the Supervisory Board – following meticulous review and consultation – passed resolutions on all of those individual measures taken by the Board of Executive Directors that by law or the Statutes required the approval of the Supervisory Board. This related in particular to the approval of the sale of the Brazilian decorative paints business and the global coatings business. Resolutions were generally passed at Supervisory Board meetings and, if necessary, by written circulation procedure.

Supervisory Board meetings

The Supervisory Board attaches great importance to a high level of attendance at its meetings. All members attended all six meetings in the 2025 business year, although one member was only able to attend the two-day strategy meeting in July on the second day and then only via video communication due to illness. With the exception of one meeting, which took place as a purely virtual meeting, the meetings were held as in-person events. At two of the five in-person meetings, a different member of the Supervisory Board participated via video call in each case. The members of the Supervisory Board, elected by the shareholders and the employees, prepared the meetings in separate preliminary

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

discussions, which were also attended by members of the Board of Executive Directors, using documents provided in advance by the Board of Executive Directors.

The Board of Executive Directors attended the Supervisory Board meetings unless it was deemed appropriate that the Supervisory Board discuss individual topics – such as personnel matters relating to the Board of Executive Directors – without them being present. In addition, each Supervisory Board meeting included an agenda item that provided an opportunity for discussion without the Board of Executive Directors (executive session). These agenda items concerned either the Board of Executive Directors itself or internal Supervisory Board matters.

An overview of the form of each meeting and members' personal attendance at meetings of the Supervisory Board and its committees is available at basf.com/supervisoryboard/meetings.

A significant component of all Supervisory Board meetings was the Board of Executive Directors' reports on the current business situation with detailed information on sales and earnings development, budget deviations and opportunities and risks for business development and the implementation of the "Winning Ways" strategy. Furthermore, discussions were held with the Board of Executive Directors on the underlying economic, political and regulatory conditions and their potential impacts on BASF, as well as on capital market developments.

At all meetings in 2025, the Supervisory Board dealt with the progress of major investment projects and ongoing portfolio projects, such as the completion and gradual commissioning of the Verbund site in Zhanjiang, the sale of the Brazilian decorative paints business and the sale of the global coatings business. In addition, the status of implementation of comprehensive measures to improve the competitiveness of European sites was discussed at all meetings.

About the meetings in detail:

As the audit of the financial statements for the 2024 business year was significantly more extensive than in previous years due to the nonfinancial statement prepared for the first time in line with the European Sustainability Reporting Standards (ESRS), the audit process at BASF was extended on an exceptional basis: At the accounts meetings of the Audit Committee and the Supervisory Board on February 25 and 26, 2025, respectively, the focus was on reviewing the preliminary business figures and key sustainability targets as well as the proposal for the appropriation of profits for the 2024 business year. At the final accounts meetings of the Audit Committee and the Supervisory Board on March 18 and 19, 2025, respectively, the focus of the audit was on the nonfinancial statement prepared in line with the ESRS. The auditor attended both accounts review meetings of the Audit Committee and both accounts meetings of the Supervisory Board, and reported each time on the procedure and material findings of its audit.

On February 26, 2025, the Supervisory Board reviewed the preliminary annual financial statements of BASF SE and the BASF Group for the 2024 business year submitted by the Board of Executive Directors, approved the preliminary financial figures prior to their publication on February 28, 2025, and approved the dividend proposed by the Board of Executive Directors. On the same date, the Board of Executive Directors explained these preliminary key indicators for the 2024 business year and the proposal for the appropriation of profit at the annual press conference for journalists and the conference call for analysts and investors. In preparing the resolutions of the Supervisory Board, the auditor had explained the process and results of the provisional audit in detail the previous day and discussed them with the Supervisory Board. Furthermore, the Supervisory Board dealt with the agenda for the virtual Annual Shareholders' Meeting on May 2, 2025 and adopted the proposals for resolutions. The meeting also focused on the status of the achievement of the $\mathrm{CO}_{2}$ emissions target, the targets for renewable energies, general business development, 2025 annual planning, cybersecurity reporting and the authorization of the Board of Executive Directors to gradually monetize BASF's shares in Harbour Energy plc.

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

At the additional, virtual meeting on March 19, 2025, the Supervisory Board approved the final annual financial statements of BASF SE and the BASF Group for the 2024 business year, as well as the Combined Management's Report including the combined Sustainability Statement. In addition, the Supervisory Board approved the Compensation Report in accordance with section 162 of the German Stock Corporation Act (AktG).

The Supervisory Board met on May 2, 2025, to prepare for the Annual Shareholders' Meeting. The development of the BASF Group in the first quarter of 2025, the status of the planned divestiture of the global coatings business and the potential impact of U.S. tariff policy were also discussed.

The meeting on July 23 and 24, 2025 focused on the performance of business to date, the status of the implementation of the "Winning Ways" strategy and further implementation measures. Key individual topics here were:

Further development of core businesses
Further development of standalone businesses
Business strategy of the Agricultural Solutions division and preparation for a possible partial IPO
Gradual startup of the Verbund site in Zhanjiang
Strategy in growth countries
Raw material transformation
Vision and cost-saving program for the Ludwigshafen Verbund site
Roll-out of Winning Culture and Winning Behaviors
Update of medium-term financial planning

The Supervisory Board meeting on October 28, 2025, was held at BASF Personal Care and Nutrition GmbH in Düsseldorf-Holthausen, which gave the Supervisory Board an opportunity to gain an impression of the site and its challenges, opportunities and successful development. Also discussed were possible portfolio measures in both the Battery Materials and the Environmental Catalyst and Metal Solutions divisions, the next steps in the divestiture of the global coatings business and the future use of cash inflows from the portfolio measures, in particular for debt reduction. In addition, the Supervisory Board discussed a possible earlier start of the share buyback program announced at Capital Markets Day 2024 with continued payment of an annual dividend of at least €2.25 per share. Finally, the Supervisory Board discussed the Chief Compliance Officer's report.

At its meeting on December 18, 2025, the Supervisory Board discussed operational and financial planning, including the investment budget for 2026, and, as in previous years, authorized the Board of Executive Directors to procure the necessary financing in 2026 within a set limit. In addition, the Supervisory Board dealt with leadership development and the measures taken to achieve the diversity targets, taking into account the respective regulatory framework.

Compensation and composition of the Board of Executive Directors

In several meetings over the 2025 business year, the Supervisory Board discussed and passed resolutions on the compensation of the Board of Executive Directors.

At its meeting on February 26, 2025, the Supervisory Board deliberated and agreed on the 2025 targets for the Board of Executive Directors' short-term incentive (STI) and the 2025 to 2028 strategic targets for the long-term incentive (LTI) based on the preparations of the Personnel Committee. Furthermore, at its meeting on December 18, 2025, the Supervisory Board evaluated, based on the discussions and the corresponding recommendation of the Personnel Committee, the Board of Executive Directors' performance in 2025.

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

At its meeting on October 28, 2025, the Supervisory Board discussed the successor to Michael Heinz, who is leaving the Board of Executive Directors as planned on April 30, 2026, as well as the first-time appointment of a director with responsibility for the Agricultural Solutions segment to the Board of Executive Directors. In accordance with the recommendation of the Personnel Committee, the Supervisory Board has appointed Dr. Mary Kurian as a member of the Board of Executive Directors with responsibility for the Chemicals and Nutrition & Care segments, and Dr. Livio Tedeschi as a member of the Board of Executive Directors with responsibility for the Agricultural Solutions segment, each of them with effect from May 1, 2026 to April 30, 2029.

» For more information on the compensation of the Board of Executive Directors and the Supervisory Board, see the Compensation Report, which will be publicly available at basf.com/compensationreport.
» For more information on the compensation system for the Board of Executive Directors, see basf.com/compensation-system

Committees

The Supervisory Board of BASF SE had the following four committees during the reporting period:

Committee for personnel matters of the Board of Executive Directors (Personnel Committee)
Audit Committee
Nomination Committee
Strategy Committee

The Committees prepare resolutions and topics to be discussed by the entire Supervisory Board. Following each Committee meeting, the chairs of the Committees reported in detail about the meetings and the activities of the Committees at the subsequent meeting of the Supervisory Board.

The Supervisory Board has not established a special sustainability committee. Sustainability is of fundamental importance to the BASF Group and is therefore the focus of the work of the entire Supervisory Board and is discussed intensively in plenary sessions. Sustainability is an issue that cuts across operating divisions and segments and a key part of BASF's strategy and is therefore the subject of the Supervisory Board's overall and ongoing monitoring activities. Sustainability expertise is therefore broadly embedded in the Supervisory Board and has long been a very important requirement for its activities. In the 2025 business year, the Supervisory Board discussed in detail the opportunities and risks for the company associated with social and environmental factors as well as the environmental and social impacts of the company's activities, and was also informed about sustainability reporting. For information of the significant impacts, risks and opportunities for BASF dealt with by the Supervisory Board in the 2025 business year, see the Corporate Governance Report from page 128 onward.

For further information on the composition and tasks of the Committees, see the Corporate Governance Report from page 118 onward.

The Personnel Committee met four times during the reporting period. All meetings were conducted as in-person meetings. All committee members attended all meetings. At its meeting on February 25, 2025, the Personnel Committee discussed the target agreement for the Board of Executive Directors for 2025 (STI) and the targets for the long-term compensation of the Board of Executive Directors for the period from 2025 to 2028 (LTI). At its meeting on July 24, 2025, the Personnel Committee focused on the appropriateness of the compensation for the Board of Executive Directors for 2025 and succession planning for the Board of Executive Directors. At the meeting on October 27, 2025, the Board of Executive Directors explained the process for identifying and developing top leaders. The Committee also recommended that the Supervisory Board should appoint Dr. Mary Kurian and Dr. Livio Tedeschi as members of the Board of Executive Directors. At the meeting on December 17, 2025, the Personnel Committee deliberated on target achievement for the Board of Executive Directors' STI for 2025.

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The Audit Committee met six times during the reporting period. Four meetings were conducted as in-person meetings and two were conducted as virtual meetings. All committee members attended all meetings. The Chief Financial Officer attended all meetings in compliance with legal requirements. The Audit Committee is responsible for all the tasks listed in section 107(3) sentence 2 of the German Stock Corporation Act (AktG) and the recommendations of the German Corporate Governance Code. The Audit Committee is also responsible for monitoring the internal process for identifying related party transactions and adopting resolutions to approve related party transactions. In addition, the Audit Committee regularly monitors and discusses the appropriateness and effectiveness of the entire internal control and risk management system, including the compliance management system. In addition, the Audit Committee deals with compliance issues, including compliance with legal provisions and internal regulations on safety, health and environmental protection.

The auditor also attended the meetings in February, March, July, October and December. The Audit Committee also discussed matters with the auditor in a separate part of the meeting without the Board of Executive Directors present (executive session). The Chairwoman of the Audit Committee also maintained regular contact with the auditor between meetings, in particular regarding the progress of the annual audit, and reported back to the committee.

At the meeting on February 25, 2025, the auditor reported in detail on the current status of audits of BASF SE's Individual and Consolidated Financial Statements for the 2024 business year, including the preliminary Combined Management's Report, excluding the Nonfinancial Statement, and discussed the results of its audit with the Audit Committee. The Audit Committee dealt in particular with the key audit matters. The meeting also focused on the assessment of the quality of the audit of the financial statements and the internal control system for financial reporting. In addition, the Audit Committee recommended that the Supervisory Board should propose Deloitte GmbH Wirtschaftsprüfungs-gesellschaft to the Annual Shareholders' Meeting as auditors and – due to the legal uncertainty regarding the transposing of the Corporate Sustainability Reporting Directive (CSRD) into German law – as auditors of the sustainability report for the 2025 business year as a precautionary measure. Finally, the Audit Committee received a report from the Chief Financial Officer on BASF's free cash flow measures and hedging strategies.

The subject of the additional, virtual meeting of the Audit Committee on March 18, 2025 was the preliminary review of the final annual financial statements of BASF SE and the BASF Group for the 2024 business year as well as the Combined Management's Report. The audit focused on the Combined Sustainability Statement, which is part of the Combined Management's Report. The Committee's audit also included the compensation report of BASF SE in accordance with Section 162 of the German Stock Corporation Act (AktG), which was audited by the auditor. At this meeting, the auditor again explained the results of his audit in detail and discussed them with the Audit Committee.

At its meeting on April 30, 2025, the Audit Committee addressed the BASF Group's Quarterly Statement for the first quarter of 2025, which was due for publication, the internal risk management system and the health, safety and environmental audits at the BASF Group over the prior 12-month period. Another topic at the meeting was BASF's cost-saving programs.

The main topics of the meeting on July 23, 2025 were the audit of the BASF Group's 2025 Half-Year Financial Report and compliance with legal provisions, regulatory requirements and internal corporate guidelines (compliance) in the BASF Group, which were the subject of the periodic report by the head of the Corporate Compliance unit. In addition, at this meeting, the Audit Committee engaged Deloitte GmbH Wirtschaftsprüfungsgesellschaft – the auditor elected by the Annual Shareholders' Meeting on May 2, 2025 – with the audit for the 2025 business year and auditing fees were agreed upon. The Audit Committee approved the audit plan and discussed and defined the focus areas and scope of the annual audit together with the auditor.

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

The meeting on October 27, 2025, centered on the BASF Group’s Statement for the third quarter of 2025 and the post-audit on major acquisitions and divestitures. The meeting also dealt with the report of the head of the Corporate Audit department on the activities and findings of Corporate Audit, the reporting on related party transactions, and the Committee’s annual self-evaluation of the effectiveness and efficiency of its work.

At the meeting on December 17, 2025, the auditors provided the Audit Committee with a detailed report on the status of the annual audit, as well as the focus areas and the most important individual items. The Audit Committee also received reports on the appropriateness and effectiveness of the internal control system and the risk management system.

At all meetings, the Audit Committee addressed the main pending accounting issues. Risks from threatened or pending litigation were also reported at four meetings.

The Nomination Committee is responsible for preparing candidate proposals for the Supervisory Board members to be elected by the Annual Shareholders’ Meeting. The Nomination Committee is guided by the objectives for the composition of the Supervisory Board adopted by the Supervisory Board as well as the competence profile and diversity concept for the Supervisory Board. The Nomination Committee did not meet during the reporting period.

For information on the objectives for the composition of the Supervisory Board as well as the competence profile and diversity concept for the Supervisory Board, see the Corporate Governance Report on page 122.

The Strategy Committee, set up to consult on strategic options for the ongoing development of the BASF Group, met once in the reporting period. All committee members attended the meeting. The topic of this virtual meeting on October 8, 2025 was the planned conclusion of legally binding agreements for the divestiture of the global coatings business, for which the Committee submitted a recommendation for a resolution to the Supervisory Board.

Training measures

Individual onboarding sessions are held for the new members of the Supervisory Board to familiarize them with corporate governance at BASF, the organization, the business processes and internal structures of the BASF Group, and the composition of its businesses and their strategies. Above and beyond this, the company also supports the members of the Supervisory Board with training for their activities on the Supervisory Board, whether through external offerings such as topic-specific seminars or internal information offerings such as site and plant visits to give them an insight into the portfolio as well as production and manufacturing methods. As part of its meeting on October 28, 2025, the Supervisory Board visited the Düsseldorf-Holthausen site.

Corporate governance and Declaration of Conformity

In 2025, the Supervisory Board was once again intensely occupied with the corporate governance standards practiced in the company and the implementation of the recommendations and suggestions of the German Corporate Governance Code (GCGC) in the version dated April 28, 2022.

In accordance with the recommendations of the GCGC and the guiding principles for the dialog between investors and German supervisory boards, the Chairman of the Supervisory Board once again discussed corporate governance matters with investors in 2025. The main topics were the agenda of the Annual Shareholders’ Meeting and the authorization of the Board of Executive Directors to hold virtual Annual Shareholders’ Meetings. The composition of the Board of Executive Directors and the Supervisory Board, the Supervisory Board’s support for BASF’s strategic development, and the company’s sustainability reporting and risk management were also discussed.

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

At its meeting of December 18, 2025, the Supervisory Board approved the joint Declaration of Conformity by the Supervisory Board and the Board of Executive Directors in accordance with section 161 of the German Stock Corporation Act (AktG). BASF complies with all recommendations of the GCGC 2022. The Corporate Governance Report provides extensive information on the BASF Group's corporate governance. The full Declaration of Conformity is rendered on page 143.

» For more information, see basf.com/en/corporategovernance

Independence and efficiency review

An important aspect of good corporate governance is the independence of Supervisory Board members and their freedom from conflicts of interest. The Supervisory Board bases the assessment of the independence of its members on the recommendations of the GCGC and the additional criteria for assessing the independence of Supervisory Board members contained in the Rules of Procedure of the Supervisory Board. It also pays due regard to the ESRS, published as a delegated act in the Official Journal of the EU on December 22, 2023, when assessing the independence of its members. The criteria used to assess independence are presented in detail in the Corporate Governance Report. Based on these criteria, the Supervisory Board came to the conclusion that all of the six shareholder representatives and five of the six employee representatives – 11 of the 12 members of the Supervisory Board in total – are considered to be independent as at the end of 2025. Employee representative Michael Vassiliadis was formally classified as non-independent due to the length of his membership on the Supervisory Board, which exceeds 12 years. Above and beyond this, the Supervisory Board does not see any indications that the Supervisory Board role is not performed completely independently. In cases where Supervisory Board members hold supervisory or management positions at companies with which BASF has business relations, we see no impairment of their independence. The scope of these businesses is not material and furthermore, they take place at arm's length.

The Supervisory Board regularly reviews the efficiency of its activities in the form of a self-assessment. For this reason, the Chairman of the Supervisory Board conducted a survey of all Supervisory Board members in the fourth quarter of 2025 on proposed topics for the coming financial year, as well as further opportunities for improving cooperation within the Supervisory Board. The results were presented and discussed at the December meeting. They confirmed that the Supervisory Board works together professionally and with a high degree of trust.

The Audit Committee also conducted a self-assessment of its activities in 2025. This was based on a questionnaire sent to all members of the Audit Committee, the results and detailed suggestions of which were discussed by the Audit Committee at its meeting on October 27, 2025. Material subjects were the organization and content of meetings, meeting documents and reports, participants and quality of discussions at meetings, reporting to the Supervisory Board on the work of the Audit Committee, access to external and internal auditors, cooperation with management and the appropriateness of the Audit Committee's performance of its duties in accordance with the Statutes and the Rules of Procedure. On this basis, the members judged the Audit Committee's work to be efficient and appropriate. There was no fundamental need for improvement. Individual suggestions were addressed.

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Individual and Consolidated Financial Statements; Compensation Report

Deloitte GmbH Wirtschaftsprüfungsgesellschaft, the auditor newly elected by the Annual Shareholders' Meeting for the 2025 business year, has audited the Financial Statements of BASF SE and the BASF Group Consolidated Financial Statements, which were prepared in accordance with the IFRS® Accounting Standards as adopted by the European Union, and the additional requirements that must be applied in accordance with section 315e(1) of the German Commercial Code (HGB), including the Combined Management's Report and the accounting records from which they were prepared, and have approved them free of qualification. Furthermore, the auditor certified that the Board of Executive Directors had taken the measures incumbent on it under section 91(2) of the German Stock Corporation Act (AktG) in an appropriate manner. In particular, it had instituted an appropriate early risk detection system that fulfilled the requirements of the company and is suitable for the early identification of developments that could pose a risk to the continued existence of the BASF Group. The results of the audit as well as the procedure and material findings of the audit of the financial statements are presented in the Auditor's Report.

The Auditor's Report is rendered from page 424 onward. For more information on the auditor, see the Corporate Governance Report on page 135.

As the CSRD Implementation Act has still not been passed in Germany, the CSR Directive Implementation Act (CRS-RUG), which transposed the previous European Nonfinancial Reporting Directive (NFRD) into German law, remains the relevant legal basis for BASF's sustainability reporting in the 2025 business year. For this reason, for the 2025 business year, a Nonfinancial Statement was once again prepared for the BASF Group and BASF SE in accordance with Section 289b of the German Commercial Code (HGB) ("Combined Sustainability Statement"). The ESRS served as an acknowledged reporting framework within the meaning of section 289d HGB for the Nonfinancial Statement.

Given this legal situation, the Supervisory Board followed the recommendation of the Audit Committee by instructing Deloitte, above and beyond the statutory audit, to conduct a separate audit with limited assurance of the Combined Sustainability Statement for BASF SE and the BASF Group for the 2025 business year, which form an integral part of the Combined Management's Report. Based on the limited assurance conducted, Deloitte did not raise any objections to the reporting and its compliance with the relevant statutory requirements. The auditor also audited the Compensation Report for the 2025 business year established in accordance with section 162 AktG, including the related disclosures.

The assurance report issued by Deloitte on the substantive audit of the Combined Sustainability Statement can be found from page 433 onward.

» The assurance report issued by Deloitte on the audit of the Compensation Report can be found at basf.com/compensationreport.

The Combined Sustainability Statement for the 2025 business year, which was audited separately by the auditor with limited assurance, including the disclosures on EU taxonomy, as well as the related audit report, were discussed in detail at the accounts meetings of the Audit Committee and the Supervisory Board. In preparation, the Board of Executive Directors presented and explained to the Audit Committee and Supervisory Board the double materiality analysis for the 2025 business year and the resulting material impacts, risks and opportunities.

The Audit Committee reviewed the Individual and Consolidated Financial Statements of BASF SE, the Combined Management's Report including the Combined Sustainability Statement and the Compensation Report at its meeting on February 24, 2026, taking into account the reports prepared by the auditor and the key audit matters specified in the Auditor's Report, and discussed them in detail with the auditor. The Chairwoman of the Audit Committee gave a detailed account of the preliminary review at the Supervisory Board meeting on February 25, 2026. The auditor's audit reports were available to all members of the Supervisory Board and were discussed in detail at the Supervisory Board's accounts

BASF Report 2025
Report of the Supervisory Board

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

meeting in the presence of the auditor. On this basis, the Supervisory Board examined the Financial Statements of BASF SE for the 2025 business year, the proposal by the Board of Executive Directors for the appropriation of profit, and the 2025 Consolidated Financial Statements and Combined Management's Report for the BASF Group and BASF SE, including the Combined Sustainability Statement. The results of the preliminary review and the recommendation by the Audit Committee and the results of the Supervisory Board's own examination fully concur with those of the audit. The Supervisory Board sees no grounds for objection to the management or the reports submitted.

At its accounts meeting on February 25, 2026, the Supervisory Board approved the Financial Statements of BASF SE and the Consolidated Financial Statements of the BASF Group prepared by the Board of Executive Directors, making the 2025 Financial Statements final. The 2025 Financial Statements of BASF SE have thus been adopted. The Supervisory Board concurred with the Board of Executive Directors' proposal regarding the appropriation of profit and the payment of a dividend of €2.25 per share.

Also at the meeting on February 25, 2026, the Supervisory Board discussed with the Board of Executive Directors the joint Compensation Report of the Board of Executive Directors and the Supervisory Board in accordance with section 162 AktG and approved it.

» The Compensation Report will be published at basf.com/compensationreport.

Acknowledgements

On behalf of the Supervisory Board, I would like to thank all members of the Board of Executive Directors for their dedicated commitment and outstanding leadership in another very challenging year. Moreover, I would like to thank all employees for their exceptional commitment to BASF.

Ludwigshafen, February 25, 2026

On behalf of the Supervisory Board

Dr. Kurt Bock
Chairman of the Supervisory Board

BASF Report 2025
Report of the Supervisory Board | 445

At a Glance

Combined Management's Report

Consolidated Financial Statements

Further Information

Selected Key Figures Excluding Precious and Base Metals

The IFRS figures correspond to the amounts presented in the Consolidated Financial Statements, excluding discontinued operations. The adjusted figures exclude sales from precious and base metal services as well as precious and base metal sales in the Battery Materials division and in the Environmental Catalyst and Metal Solutions division.

BASF Group

	2025		2024
		IFRS figure	Adjusted figure	IFRS figure	Adjusted figure
Sales	million €	59,657	53,306	61,444	56,184
Volumes	%	1.5	0.7	1.9	3.7
Prices	%	-1.7	-3.3	-5.7	-3.3
Currencies	%	-3.0	-2.9	-1.6	-1.8
Portfolio	%	0.3	0.4	-0.1	-0.1
EBITDA before special items	million €	6,554	6,554	7,240	7,240
EBITDA margin before special items	%	11.0	12.3	11.8	12.9

Surface Technologiesa

	2025		2024
		IFRS figure	Adjusted figure	IFRS figure	Adjusted figure
Sales	million €	8,967	2,631	8,055	2,809
Volumes	%	8.8	5.2	-10.3	-8.3
Prices	%	9.0	-1.8	-16.9	-2.9
Currencies	%	-4.8	-4.7	-0.9	-1.9
Portfolio	%	-1.7	-5.0	0.0	0.0
EBITDA before special items	million €	800	800	470	470
EBITDA margin before special items	%	8.9	30.4	5.8	16.7

BASF Report 2025

Selected Key Figures Excluding Precious and Base Metals

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Glossary

B

Biodiversity and ecosystems

Biodiversity refers to the diversity of all life forms on earth. It encompasses the diversity of ecosystems, the different species that inhabit these ecosystems and the genetic diversity within these species. Ecosystems are communities of living organisms (plants, animals, microorganisms) and their physical environment (air, water, soil) that interact within a specific space. Ecosystems can be very diverse, from forests and deserts to oceans and urban areas.

C

Circular economy

The circular economy is a regenerative system in which economic growth is decoupled from the consumption of finite resources. The circular economy is based on the fundamental principles of preventing waste and pollution, using products and materials for as long as possible and regenerating natural systems at the same time.

CO₂ equivalents

CO₂ equivalents (CO₂e) are units for measuring the impact of greenhouse gas emissions on the greenhouse effect. A factor known as the global warming potential (GWP) shows the impact of the individual gases compared with CO₂ as the reference value.

D

Double materiality

Double materiality as defined by the European Sustainability Reporting Standards (ESRS) is a concept that is applied in the materiality assessment. The principle of double materiality looks at sustainability aspects from two perspectives: 1. Impact materiality, which determines the actual and potential positive and negative impacts of business activities on various sustainability topics. 2. Financial materiality, which considers the opportunities and risks of sustainability topics for a company's financial position.

E

Eco-Efficiency Analysis

The Eco-Efficiency Analysis is a method developed by BASF for assessing the economic and environmental aspects of products and processes. The aim is to compare products with regard to profitability and environmental compatibility.

ESRS

The European Sustainability Reporting Standards provide a framework for companies to report on environmental, social and governance topics. The standards were developed by the European Financial Reporting Advisory Group (EFRAG) and are binding for all companies subject to the Corporate Sustainability Reporting Directive (CSRD).

> For a comprehensive overview of the abbreviations and definitions used in the ESRS, see data.consilium.europa.eu/doc/document/ST-12481-2023-ADD-2/en/pdf

BASF Report 2025
Glossary | 447

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

EU taxonomy

The European Union (EU) strives to be climate neutral by 2050 as part of the Green Deal. The EU taxonomy serves as an instrument for that purpose. It provides a common classification system for economic activities based on their substantial contribution to environmental objectives. The EU Taxonomy Regulation obliges large companies, among others, to disclose sales revenues as well as capital and operating expenditures that contribute to at least one of the six environmental objectives listed in the taxonomy system.

F

Formulation

Formulation describes the combination of one or more active substances with excipients like emulsifiers, stabilizers and other inactive components in order to improve the applicability and effectiveness of various products, such as cosmetics, pharmaceuticals, agricultural chemicals, paints and coatings.

G

Green transformation

In order to enable our customers' green transformation, BASF systematically develops and offers solutions that minimize negative environmental and social impacts while maximizing positive outcomes. This involves our efforts to reduce carbon emissions, conserving resources, and using renewable energy and feedstocks. According to the three dimensions of sustainable development, we place ecological and economic balance as well as social responsibility at the forefront of our actions.

J

Just transition

Just transition refers to a concept for a transformation toward a climate-neutral, resilient and socially just societal and economic order. To this end, ecological, economic and social challenges are to be given equal consideration, with a particular focus on disadvantaged and vulnerable populations.

> A more detailed definition can be found at bmz.de/de/service/lexikon (available in German only).

P

Policy

In this report, we use the word policy or requirement to describe internal frameworks that set out the fundamental guidelines of our company. At BASF, policies are set by the Board of Executive Directors and define principles relating to a specific topic. Separate requirements define the processes for implementing a policy.

R

Renewable raw materials

Renewable raw materials are materials made from renewable resources that can be replenished by natural or artificial processes within a reasonable time frame. These include both bio-based feedstocks from biomass and bio-attributed materials, to which raw materials from biomass are attributed via certified processes such as mass balance.

BASF Report 2025
Glossary | 448

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Steam cracker

A steam cracker is a plant in which steam is used to "crack" naphtha (petroleum) or natural gas. The resulting petrochemicals are the raw materials used to produce most of BASF's products.

Substances of concern or of very high concern

Substances of concern (SoC) are chemical substances which, if handled improperly, may have potentially harmful effects on human health or the environment and which, based on their properties, have a harmonized classification under the European CLP Regulation. Substances of very high concern (SVHC) are a distinct group of chemicals identified by their severe hazardous properties, including carcinogenic, mutagenic or toxic effects on reproduction. These substances are identified, included on a candidate list and specially monitored under the EU chemicals regulation REACH. According to REACH, suppliers are obliged to indicate substances that have been included in the candidate list and are contained in products on the safety data sheet.

Traits

Traits are commercial plant characteristics, such as an inherent resistance to certain herbicides or an inherent defense against certain insects.

Value Chain

A value chain describes the successive steps in a production process: from raw materials through various intermediate steps, such as transportation and production, to the finished product.

BASF Report 2025
Glossary | 449

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Trademarks¹

IAS® Standards

Registered trademark of the IFRS Foundation. The IFRS® Accounting Standards are financial reporting standards issued by the IFRS Foundation and the International Accounting Standards Board (IASB).

IFRS® Accounting Standards

Registered trademark of the IFRS Foundation, which comprises international accounting policies for companies, issued by the International Accounting Standards Board (IASB). In this case, IFRS stands for International Financial Reporting Standards.

International Accounting Standards Board (IASB®)

Registered trademark of the IFRS Foundation. The IASB is the independent body of the IFRS Foundation that sets International Financial Reporting Standards (IFRS® Accounting Standards).

International Financial Reporting Interpretations Committee (IFRIC®)

Registered trademark of the IFRS Foundation. The IFRIC is the IASB’s interpretative body that develops, maintains and issues the IFRS® Accounting Standards.

Operation Clean Sweep® (OCS)

Registered trademark of the Plastics Industry Association (PLASTICS)

Responsible Care®

Registered trademark of the European Chemical Industry Council

All other trademarks referred to in the BASF Report are registered trademarks of the BASF Group (identified with the ® symbol), trademarks pending (identified with the ™ symbol), or trademarks used by the BASF Group.

¹ Trademarks are not registered/used in all countries.

BASF Report 2025
Trademarks | 450

At a Glance
Combined Management's Report
Consolidated Financial Statements
Further Information

Quarterly Statement Q1 2026 / Annual Shareholders' Meeting 2026

Apr. 30, 2026

Half-Year Financial Report 2026

Jul. 29, 2026

Quarterly Statement Q3 2026

Oct. 28, 2026

Publication of BASF Report 2026

Feb. 26, 2027

Quarterly Statement Q1 2027 / Annual Shareholders' Meeting 2027

Apr. 29, 2027

Responsible Care®
OUR COMMITMENT TO SUSTAINABILITY

BASF supports the chemical industry's global Responsible Care® initiative.

Contact

General inquiries

Phone: +49 621 60-0
Email: [email protected]

Media Relations

Jens Fey, phone: +49 621 60-99123

Investor Relations

Dr. Stefanie Wettberg, phone: +49 621 60-48002

Internet

basf.com

Further information

Published February 27, 2026

You can find this and other BASF publications online at basf.com/publications.

Forward-looking statements and forecasts

This report contains forward-looking statements. These statements are based on current estimates and projections of the Board of Executive Directors and currently available information. Forward-looking statements are not guarantees of the future developments and results outlined therein. These are dependent on a number of factors; they involve various risks and uncertainties; and they are based on assumptions that may not prove to be accurate. We do not assume any obligation to update the forward-looking statements contained in this report above and beyond the legal requirements.

Such risk factors include in particular those discussed in Opportunities and Risks on pages 90 to 105 of the BASF Report 2025.
The BASF Report is available online at basf.com/report.

BASF Report 2025
Further Information

AI assistant

BASF SE — Annual Report 2025

44_10-k_2026-03-02_9bcadd40-aac9-475a-9ef9-9164e952b9a3.pdf

20

20

BASF Report

Statement of the Chairman of the Board of Executive Directors

Letter from the Chairman of the Supervisory Board

2025 BASF Group Annual Report

Contents

2025 – at a glance

Sales and employees by region

North America

Europe

South America, Africa, Middle East

Asia Pacific

Greenhouse gas emissions

1

BASF Report 2025

Combined Management's Report

1.1 Fundamentals of the Group 11

1.2 BASF Group's Business Year 43

1.3 Forecast 81

1.4 Disclosures on BASF SE in Accordance with the German Commercial Code (HGB) 106

1.5 Corporate Governance 114

1.6 (Consolidated) Sustainability Statement 145

Environment 172

Social 248

Governance 288

Appendix to the (Consolidated) Sustainability Statement 297

Key to symbols used in the Management's Report:

ESRS

() Critically read

[] Limited assurance

Overview – About This Report and the Combined Management’s Report

Content and Structure

Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)

Disclosures required by takeover law in accordance with sections 289a and 315a HGB

Declaration of Corporate Governance in accordance with sections 289f and 315d HGB

Compensation Report

Data and scope of consolidation

Forward-looking statements and forecasts

1.1 Fundamentals of the Group

BASF Group

Sites and Verbund

Organization of the BASF Group

BASF Group segments in 2025

Core businesses

Standalone businesses

Surface Technologies

Agricultural Solutions

Business and competitive environment

BASF sales by region 2025

Corporate legal structure

Strategy

Our Strategy

Our Strategic Levers

Focus

Accelerate

Transform

Win

Accountability:

Speed:

Improvement Mindset:

How We Create Value

Inputs

Outcomes

Selected relevant external impact factors

Selected impacts of our business activities

BASF

Business Models of the Segments

Chemicals

Materials

Industrial Solutions

Nutrition & Care

Surface Technologies

Agricultural Solutions

Our Steering Concept

Steering concept of the BASF Group

Value-based management throughout the company

BASF SE Annual Report 2025