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Key Initiatives & Solutions for Measuring and Managing Impact Across the Value Chain Cristian Barcan BASF
Cristian Barcan Monterey, CA  June 7 th  - 10 th  2011 Creating and Marketing  More Sustainable Brands
BASF – The Chemical Company The world ’s leading chemical company <ul><li>Our chemistry is used in nearly all  industry se...
How we achieve value-added growth – Our four strategic guidelines We earn a premium on  our cost of capital We help our cu...
Chemicals Plastics Performance Polymers Polyurethanes Crop Protection Oil & Gas Performance Products Paper Chemicals Dispe...
9 billion  people will live on this planet by 2050. <ul><li>This will create demand for: </li></ul><ul><ul><li>Improved pr...
The main question <ul><li>What is  Sustainability? </li></ul><ul><li>How to  feed and create an acceptable living standard...
BASF ’s 15 years experience in sustainability metrics <ul><li>Over 450 LCA based studies </li></ul><ul><li>Leading company...
<ul><li>Sustainability </li></ul><ul><ul><li>=   Not a  “black and white” issue </li></ul></ul><ul><ul><li>= Not related t...
More sustainable brands –  improvement over time in three areas Toolkit from BASF Independent Certification based on the P...
The S.E.T. Elements “S” for Sustainability S Assessment Tool: Hotspot Analysis Implementation Tool: Sustainability hotspot...
The S.E.T. Elements “E” for Eco-Efficiency E Value Chain Assessment E Assessment Tool: LCA Eco-Efficiency Analysis Impleme...
More sustainable products in time Customer benefit: Packaging and consumption  of 1.000 lbs of chicken… -1.0 1.0 3.0 -1.0 ...
Optimization platforms The Eco-Efficiency Manager http://www.eeaman.com
The S.E.T. Elements “T” like Traceability T Traceability T Implementation Tool: Traceability strategy Traceability coopera...
Traceability building blocks NAIS, PTI SAP, FAMOUS, NAVISION ERP, THIRD PARTY TRACEABILITY NETWORKS KEY:  INTEROPERABILITY...
Example: Whole-chain traceability system   Nutrition Ingredients
DNV ProSustain Adding credibility to product sustainability claims <ul><li>Certificate (external use) </li></ul><ul><li>Ce...
<ul><li>Additional business / market penetration </li></ul><ul><li>Premium products </li></ul><ul><li>Product and company ...
THANK YOU SO MUCH FOR YOUR ATTENTION
Worldwide service – regional offices BASF Corporation Animal Nutrition, North America 100 Campus Drive  Florham Park , New...
BASF is a leading global supplier of feed additives including vitamins, carotenoids, enzymes, organic acids and more. BASF...
DISCLAIMER: This document, or any answers or information provided herein by BASF, does not constitute a legally binding ob...
 
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SB11 - BASF - Cristian Barcan

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SB11 - BASF - Cristian Barcan

  1. 1. Key Initiatives & Solutions for Measuring and Managing Impact Across the Value Chain Cristian Barcan BASF
  2. 2. Cristian Barcan Monterey, CA June 7 th - 10 th 2011 Creating and Marketing More Sustainable Brands
  3. 3. BASF – The Chemical Company The world ’s leading chemical company <ul><li>Our chemistry is used in nearly all industry sectors </li></ul><ul><li>We combine economical success with social responsibility and the protection of the environment </li></ul><ul><li>Sales 2010: $84.9 billion </li></ul><ul><li>Sales, NA 2010: $17.7 billion </li></ul><ul><li>Employees: 109,140 </li></ul><ul><li>About 1,100 new patents filed </li></ul><ul><li>6 Verbund sites and about 380 production sites </li></ul>
  4. 4. How we achieve value-added growth – Our four strategic guidelines We earn a premium on our cost of capital We help our customers to be more successful We ensure sustainable development We form the best team in industry +
  5. 5. Chemicals Plastics Performance Polymers Polyurethanes Crop Protection Oil & Gas Performance Products Paper Chemicals Dispersions & Pigments Care Chemicals Performance Chemicals Inorganics Petrochemicals Intermediates Functional Solutions Construction Chemicals Coatings Catalysts Agricultural Solutions Oil & Gas Nutrition & Health * * Established August 1, 2010 Food Industry BASF segments targeting the food industry
  6. 6. 9 billion people will live on this planet by 2050. <ul><li>This will create demand for: </li></ul><ul><ul><li>Improved production yield with less resources </li></ul></ul><ul><ul><li>Better logistics </li></ul></ul><ul><ul><li>Less environmental impact (emissions, water, etc) </li></ul></ul><ul><ul><li>Affordability </li></ul></ul><ul><ul><li>Global availability </li></ul></ul><ul><ul><li>= SUSTAINABILE IMPROVEMENT OVER TIME </li></ul></ul>
  7. 7. The main question <ul><li>What is Sustainability? </li></ul><ul><li>How to feed and create an acceptable living standard for 9 billion people </li></ul><ul><li>that is affordable , with less environmental resources, and social diligence for </li></ul><ul><li>the next generation ? </li></ul>ECONOMIC SOCIAL ENVIRONMENTAL
  8. 8. BASF ’s 15 years experience in sustainability metrics <ul><li>Over 450 LCA based studies </li></ul><ul><li>Leading company in Dow Jones Sustainability Index, 2010 </li></ul><ul><li>Sam Gold Class Member 2008 </li></ul><ul><li>Fortune Magazine Most Admired Company </li></ul><ul><li>Sustainability Consortium founding member </li></ul><ul><li>Innovest Top 100 Most Sustainable Companies in the World – five years </li></ul>Copyright BASF SE
  9. 9. <ul><li>Sustainability </li></ul><ul><ul><li>= Not a “black and white” issue </li></ul></ul><ul><ul><li>= Not related to a single parameter alone (i.e. Carbon Footprint) </li></ul></ul><ul><ul><li>= Continuous improvement over time </li></ul></ul><ul><ul><li>= A journey, not a destination </li></ul></ul><ul><ul><li>= More sustainable goods rather than sustainable goods </li></ul></ul><ul><ul><li>= Any goods category can be more sustainable (organic, natural, etc.) </li></ul></ul><ul><li>The stage in the supply chain that needs to be more sustainable is the end consumer good (  start here !!) </li></ul>Sustainability boundaries
  10. 10. More sustainable brands – improvement over time in three areas Toolkit from BASF Independent Certification based on the ProSustain Standard SUSTAINABLE DESIRABLE DISTINCTIVE CREDIBLE <ul><li>Qualitative Performance </li></ul><ul><li>(HSA) </li></ul>(2) Quantitative Performance (LCA, EEA) (3) Transparency (Traceability) + +
  11. 11. The S.E.T. Elements “S” for Sustainability S Assessment Tool: Hotspot Analysis Implementation Tool: Sustainability hotspot management programs Sustainability hot issues S <ul><li>Issues in focus such as: </li></ul><ul><li>Overfishing of the sea </li></ul><ul><li>Rainforest destruction </li></ul><ul><li>Child labor </li></ul><ul><li>Animal welfare </li></ul>
  12. 12. The S.E.T. Elements “E” for Eco-Efficiency E Value Chain Assessment E Assessment Tool: LCA Eco-Efficiency Analysis Implementation Tool: Improvement programs Launch more eco-efficient products <ul><li>Identify the main drivers : </li></ul><ul><li>Quantitative assessment </li></ul><ul><li>Life cycle approach </li></ul><ul><li>Multi-criteria: energy, emissions, </li></ul><ul><li>Toxicity, resources, land, risk, ecc. </li></ul>
  13. 13. More sustainable products in time Customer benefit: Packaging and consumption of 1.000 lbs of chicken… -1.0 1.0 3.0 -1.0 1.0 3.0 Costs (normalized) Environmental impact (normalized) High eco-efficiency Low eco-efficiency 2010 Industry Average 2010 2003 2007 Example: The BASF Eco-Efficiency Analysis program for a chicken brand
  14. 14. Optimization platforms The Eco-Efficiency Manager http://www.eeaman.com
  15. 15. The S.E.T. Elements “T” like Traceability T Traceability T Implementation Tool: Traceability strategy Traceability cooperation with suppliers and customers Adopt traceability standards <ul><li>Different levels: </li></ul><ul><ul><li>Internal Traceability </li></ul></ul><ul><ul><li>Connect to Supply Chain </li></ul></ul><ul><ul><li>Traceability (Batch Level ) </li></ul></ul><ul><ul><li>Interoperable Value Chain Traceability </li></ul></ul>
  16. 16. Traceability building blocks NAIS, PTI SAP, FAMOUS, NAVISION ERP, THIRD PARTY TRACEABILITY NETWORKS KEY: INTEROPERABILITY INTEROPERBILITY EXTERNAL TRACEABILITY INTERNAL TRACEABILITY DATA COLLECTION AND STORAGE STANDARDS UNIQUE IDENTIFIERS
  17. 17. Example: Whole-chain traceability system Nutrition Ingredients
  18. 18. DNV ProSustain Adding credibility to product sustainability claims <ul><li>Certificate (external use) </li></ul><ul><li>Certification label (for product) </li></ul><ul><li>Assessment report (internal use) </li></ul><ul><li>Publication of detailed results on DNV ’ s website </li></ul><ul><li>Rating of management practices </li></ul><ul><li>Noteworthy efforts </li></ul><ul><li>Opportunities for improvement </li></ul><ul><li>Roadmap for improvement </li></ul>Details overleaf <ul><li>Scope of assessment </li></ul><ul><li>Methodology </li></ul><ul><li>Results </li></ul><ul><li>Conclusions and recommendations </li></ul>Product label Assessment report Certificate
  19. 19. <ul><li>Additional business / market penetration </li></ul><ul><li>Premium products </li></ul><ul><li>Product and company differentiation </li></ul><ul><li>Proven and communicable continuous sustainable improvement at product level </li></ul><ul><li>Trusted sustainable sourcing </li></ul><ul><li>Improved assurance for exports/imports </li></ul><ul><li>Brand support </li></ul>Immediate benefits for brand owners and the entire supply chain
  20. 20. THANK YOU SO MUCH FOR YOUR ATTENTION
  21. 21. Worldwide service – regional offices BASF Corporation Animal Nutrition, North America 100 Campus Drive Florham Park , New Jersey 07932 USA Phone: **1/800-527-9889 E-mail: nutrition-north-america@basf.com United States, Canada BASF East Asia Reg. Headq. Ltd. Animal Nutrition, Asia / Pacific 45th Floor Jardine House No. 1 Connaught Place Central Hong Kong Phone: **852/273 11-238 E-mail: nutrition-asia-pacific@basf.com Asia / Pacific BASF S.A. Animal Nutrition, South America Av. Brigadeiro Faria Lima, 3600 / 9° Andar São Paulo – SP 04538-132 Brazil Phone: **55/11 3043 2158 E-mail: nutrition-south-america@basf.com South America BASF SE Animal Nutrition, Europe Chemiestrasse 4 68623 Lampertheim Germany Phone: **49/621 60 28073 E-mail: nutrition-europe@basf.com Europe
  22. 22. BASF is a leading global supplier of feed additives including vitamins, carotenoids, enzymes, organic acids and more. BASF offers products of outstanding quality produced with modern, state-of-the-art technologies. BASF combines technical services and scientific expertise to meet the highest demands and to deliver the best value to the industry. Premium formulations are a key strength that has made BASF a leader in the industry. www.nutrition.basf.com
  23. 23. DISCLAIMER: This document, or any answers or information provided herein by BASF, does not constitute a legally binding obligation of BASF. While the descriptions, designs, data and information contained herein are presented in good faith and believed to be accurate, it is provided for your guidance only. Because many factors may affect processing or application/use, we recommend that you make tests to determine the suitability of a product for your particular purpose prior to use. It does not relieve our customers from the obligation to perform a full inspection of the products upon delivery or any other obligation. The claims and supporting data provided in this publication have not been evaluated for compliance with any jurisdiction ’s regulatory requirements and the results reported may not be generally true under other conditions or in other matrices. Users must evaluate what claims and information are appropriate and comply with a jurisdiction’s regulatory requirements. NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE MADE REGARDING PRODUCTS DESCRIBED OR DESIGNS, DATA OR INFORMATION SET FORTH, OR THAT THE PRODUCTS, DESIGNS, DATA OR INFORMATION MAY BE USED WITHOUT INFRINGING THE INTELLECTUAL PROPERTY RIGHTS OF OTHERS. IN NO CASE SHALL THE DESCRIPTIONS, INFORMATION, DATA OR DESIGNS PROVIDED BE CONSIDERED A PART OF OUR TERMS AND CONDITIONS OF SALE.

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