Transformation with sustainable growth - Dr. Christoph Jaekel Vice President, Corporate Sustainability Exane BNP Paribas ESG Conference, September ...
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Transformation with sustainable growth Dr. Christoph Jaekel Vice President, Corporate Sustainability Exane BNP Paribas ESG Conference, September 7, 2021
Cautionary note regarding forward-looking statements This presentation 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. Such risk factors include those discussed in Opportunities and Risks on pages 158 to 166 of the BASF Report 2020. BASF does not assume any obligation to update the forward-looking statements contained in this presentation above and beyond the legal requirements. 2 Sept. 7, 2021 I Sustainable growth
Our commitments to reaching
the Paris Climate Agreement
25%
2030 CO2 emissions
reduction
(compared with 2018)1 net zero
2050 CO2 emissions1
1 Scope 1 and Scope 2; 2030 target compared with 1990: 60% CO 2 reduction
3 Sept. 7, 2021 I Sustainable growth
Leading the journey to transform the chemical industry
▪ BASF Verbund
▪ BASF data
▪ BASF expertise
▪ BASF technologies
We create chemistry for a sustainable future
4 Sept. 7, 2021 I Sustainable growthNo downstream decarbonization without upstream decarbonization
22
BASF greenhouse gas emissions 2018 Global GHG emissions
million metric tons per year Scope 1+2
11 11
Energy production Chemical production1
5 6 9 2
Electric power Steam Upstream Downstream
Grey-to-green Power-to-steam New technologies Bio-based feedstocks
Continuous opex2
1 Includes emissions from process energy 2 Operational excellence measures
5 Sept. 7, 2021 I Sustainable growthMajor capex for further transformation only expected beyond 2030
energy
Renewable
Projected capex billion €
pr oce sses
Te s t p l a n t s 2021–2025 10
6 Sept. 7, 2021 I Sustainable growthDecarbonization requires a broad technology portfolio
Low-CO2
Carbon Circular
Management Bio-based Economy
Ccycled
CO2 avoidance potential per megawatt hour Target: We aim at doubling our circular
of electrical energy used (metric tons of CO2/MWh) sales to reach €17 billion by 2030
▪ Methane pyrolysis ~0.9 Focus on closing the loops
▪ Heat pumps ~0.6-1.0 ▪ Renewable-based feedstocks
▪ eDrive NH3 ~0.7 ▪ Recycled-based feedstocks
▪ Enable recyclability and/or
▪ eFurnace ~0.2
biodegradability
▪ Water electrolysis ~0.2
7 Sept. 7, 2021 I Sustainable growthWe are a key enabler to help our customers decarbonize
their value chains
Low-carbon products
Grey-to-green Power-to-steam New technologies Bio-based feedstocks Continuous opex
8 Sept. 7, 2021 I Sustainable growthBASF, SABIC and Linde join forces to realize the world’s first
electrically heated steam cracker furnace
Conventional
furnace ▪ Goal is to drive concepts and faster implementation
CO2 through combined strengths
Raw
Naphtha olefins BASF and SABIC: extensive know-how and intellectual
property in developing chemical processes; long-
850°C standing experience and knowledge in operating
Furnace
steam crackers
Natural gas
Linde: expertise and intellectual property in developing
and building steam cracking furnace technologies and
driving future industry commercialization
eFurnace
Raw ▪ Construction of a demonstration plant depending on
Naphtha olefins
funding granted – application to E.U. Innovation Fund and
German funding program “Decarbonization in Industry”
850°C
eFurnace
Renewable ▪ If funding is granted, startup could happen as fast as 2023
energy
9 Sept. 7, 2021 I Sustainable growthTurning Carbon Management into business opportunities
20,000
Raw materials CO2
Scope 3 1011101
0101000 1011101
0101010
0101010
0101010
1011110 Product Carbon
1010111 1010101
1010101 Footprints of
700
1010010
0110100 1010010
1010100
1011101010
~45,000
0101010
1000010101
10100
Production plants 001010
Scope 1
sales products
10 TWh/a
Energy
Scope 2
Cradle-to-gate Product Carbon Footprints for BASF’s portfolio available by end of
2021 based on process emissions, energy demand and upstream emissions
10 Sept. 7, 2021 I Sustainable growthWe make the carbon footprint of each of our products transparent,
enabling our customers to achieve their goals
One of our key
customers “BASF’s initiative to
calculate carbon
footprints for all sales Bertrand Conqueret
Chief Procurement Officer
products is setting a
benchmark for the
industry.”
11 Sept. 7, 2021 I Sustainable growthEconomics of decarbonization Impact on sales and profitability ► Above-average volume growth of products with low carbon footprint due to rising demand ► Customers’ willingness to pay higher prices for low-emission products ► Higher margins expected for products with low carbon footprint produced in BASF’s Verbund Impact on capex and costs ► Increased capex partially mitigated through public funding for pioneering, new technologies ► Minor incremental costs of mass balance approaches in existing Verbund assets Impact of external environment ► High initial variable costs for renewable energy have to decline with increased availability and favorable regulatory changes ► A supportive overall regulatory environment will drive positive economics and accelerate transformation 12 Sept. 7, 2021 I Sustainable growth
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