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Global Compact International Yearbook 2009

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “ Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

The road to Copenhagen is the catchphrase: Climate Change is the top issue of inaugural edition, on the market since 1th of august 2009. In a very personal and exclusive foreword, UN Secretary-General Ban Ki-moon stresses the urgency of multilateral action: „One underlying message of this Yearbook is that a global, low-carbon economy is not only technologically possible, it makes good business sense“, said Ban. „We need the voice and energy of business to help us combat climate change.“ Sir Anthony Giddens adds the importance of the upcoming Copenhagen Climate Summit: „It is an important year, and everybody knows it because it is the year of Copenhagen. It’s a key for climate change policy. I do hope the Copenhagen negotiations will be successful, but there are reasons I have to be worried. “

Another key issue of this edition is the global economic crisis: 2008 will be remembered as the year of crises. The breakdown of financial institutions and markets and the subsequent worldwide economic downturn have put the spotlight on issues that the United Nations Global Compact has long advocated as essential responsibilities for modern business and today’s global markets: comprehensive risk management, long-term performance, and ethics. Georg Kell, Executive Director of the Global Compact, writes: „Restoring confidence and trust in markets requires a shift to long-term sustainable value creation, and corporate responsibility must be an instrument towards this end. If the crisis is any indication, it is now time to build on the advances made over the past 10 years by companies and investors in the area of ESG performance and bring this discipline to the mainstream. “

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BASF<br />

is a lack of knowledge on how to obtain a<br />

Material Safety Data Sheet (MSDS), which<br />

is obligatory in China and describes the<br />

chemical and physical properties of a<br />

material and provides advice on safe<br />

handling and use of the material.<br />

Hands-on approach:<br />

BASF developed tailor-made programs<br />

according to “1+3” partners’ specific<br />

requests, ranging from seminars and<br />

training to site visits and implementation.<br />

Through these, partners started to<br />

see the bigger picture of how and where<br />

to improve their EHS areas in a systematic<br />

way. BASF also provided training for<br />

a Road Safety Quality Assessment System<br />

(RSQAS), which is a preventive program<br />

to strengthen the safety and reliability of<br />

chemical transportation in China.<br />

In so-called “Eyes for Safety” visits, the<br />

six BASF expert teams first went to inspect<br />

each partner’s production site in<br />

order to get a picture of the partner’s<br />

EHS status and make it aware of the<br />

areas which might have been overlooked.<br />

Then, the BASF experts and the partner’s<br />

EHS managers together identified priority<br />

cooperation areas. “The BASF visit<br />

provided good insight for our middle<br />

management on environmental protection<br />

and safety management,” said Mr<br />

Zhang Qiming, the Board Chairman of<br />

Zhejiang Qiming Pharmaceutical Co. Ltd.<br />

after an “Eyes for safety” visit.<br />

their improvement progress, which are<br />

then quickly addressed by BASF experts.<br />

This proved to be a very helpful tool for<br />

our partners to view their implementation<br />

as a long-term process and to ensure<br />

continuous improvement.<br />

During a “1+3” sustainability self-assessment<br />

seminar in July 2008 in Shanghai,<br />

senior executives from six “1+3” partners<br />

and the BASF project team attended a<br />

roundtable discussion. BASF experts<br />

presented detailed analysis on their six<br />

Responsible Care (RC) systems and best<br />

practices. This trust-filled sharing not<br />

only of good experiences but also of<br />

challenges and related problem-solving<br />

techniques with regard to practical implementation<br />

of sustainability aspects<br />

is another fruitful result of the whole<br />

project. All participating companies are<br />

committed to continue to implement<br />

their social responsibility objectives by<br />

putting more sustainability ideas into<br />

practice.<br />

The fruits of the “1+3”<br />

sustainability project<br />

Improving value chain competitiveness and<br />

creating new customer relations:<br />

By disseminating the “1+3” ideas and values<br />

to more partners, BASF continually<br />

broadens the platform for dialogue with<br />

them and puts an innovative customer<br />

relationship into practice. Mutual trust is<br />

established between the two parties, effectively<br />

laying the foundation for a longterm<br />

strategic partnership. This not only<br />

strengthens BASF's inter-departmental<br />

cooperation, but also reduces risk in its<br />

value chain.<br />

In the implementation phase, the project<br />

groups also provide training to address<br />

common issues faced by all companies.<br />

Every project group also reviewed one of<br />

their partner’s reform strategies.<br />

Sustainable solutions need<br />

staying power<br />

Sustainability solutions are usually implemented<br />

over a long-term period. This<br />

is why “1+3” aims to accompany our<br />

partners beyond the first year. In order<br />

to help our partners to ensure sustained<br />

improvement in their sustainability practices,<br />

BASF offers self-assessments in the<br />

form of a questionnaire asking about<br />

“Difficult times especially show that companies which conduct their business<br />

sustainably and responsibly are more successful in the long-term. That is<br />

why sustainability is a firm part of BASF’s strategy: Long-term success is<br />

not possible unless the environment and society are treated carefully. We<br />

are therefore committed to implementing the principles of the U.N. <strong>Global</strong><br />

<strong>Compact</strong>.”<br />

Dr. Jürgen Hambrecht, BASF chairman of the board<br />

18<br />

<strong>Global</strong> <strong>Compact</strong> <strong>International</strong> <strong>Yearbook</strong> <strong>2009</strong>

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