BASF Features Sustainable Development Tool At Conference; Highlights Corporate Measures to Minimize Environmental Impact and Add Value

Business Wire, June 26, 2001

Business Editors

SAN DIEGO--(BUSINESS WIRE)--June 26, 2001

BASF today presented highlights of its strategic lifecycle tool, "eco-efficiency analysis", demonstrating the company's commitment to innovation and sustainable development worldwide. The tool, used to evaluate new and existing products and production processes in order to capitalize on those that are most environmentally sound and economically efficient, was discussed with representatives of environmental, trade, and business organizations at the Bio 2001 Conference by BASF's President of Environment, Safety, and Energy Division, Dr. Walter Seufert. Introduced in 1996, eco-efficiency analysis has allowed BASF to develop a more competitive edge in markets characterized by customer demands for improved environmental and performance attributes from their suppliers' products and production processes.

Eco-efficiency analysis assesses the life cycle of a product or manufacturing process from "cradle to grave. It addresses the environmental impact of products used by BASF as well as raw materials manufactured by others. The analysis also investigates the consumption behavior of end-users and various recycling and disposal options.

In assessing environmental impacts, six categories are examined, including raw materials consumption, energy consumption, air and water emissions and disposal methods, potential toxicity and risks, and land use.

BASF's model has been applied to over 100 products and services across a variety of areas, ranging from asphalt microsurfacing to nylon in commercial carpeting and automotive coatings. Eco-efficiency analysis is utilized to assess comparative products/processes as well as aid in corporate decisions of the highest level, including capital investments and acquisitions.

By employing eco-efficiency analysis to trace the product/process lifecycle and address the environmental impact of materials used, the company has been able to improve the quality of the products it supplies to its customers.

Speaking to Bio Conference attendees, Dr. Seufert remarked, "Eco-efficiency analysis is about fulfilling the goals of sustainable development by starting with decisions about what we produce and how we produce it." He added, "While it is important for today's analysis, this tool allows us to look into the future and exploit new economic and ecological developments."

BASF is a transnational chemical company that aims to increase and sustain its corporate value through growth and innovation. The company's product range includes high-value chemicals, plastics, colorants and pigments, dispersions, automotive and industrial coatings, agricultural products and fine chemicals as well as crude oil and natural gas. BASF's approach to integration, known in German as "Verbund," is one of its particular strengths, ensuring cost leadership and a unique competitive advantage. With sales of about Euro 36 billion (approximately $34 billion) and a workforce of 103,000 employees in 2000, BASF is one of the world's leading chemical companies. BASF acts in accordance with the principles of Sustainable Development. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and New York (BF). The company's Internet address is www.basf.com.

About BASF Corporation

Based in Mount Olive, New Jersey, BASF Corporation is the North American affiliate of BASF AG (Ludwigshafen, Germany). BASF Corporation had sales of $7.9 billion in 2000. "We don't make a lot of the products you buy. We make a lot of the products you buy better(R)" summarizes BASF's diverse product mix including chemicals, polymers, automotive and industrial coatings, colorants, vitamins, nylon fibers and agricultural products. BASF in North America employs more than 15,000 people at more than 50 locations. BASF Corporation can be found on the Internet at www.basf-corp.com. The slogan is a registered trademark of BASF Corporation.