Case Study on the Environment
Encourage the development and diffusion of environmentally sensitive technologies
Name of Company: BASF
Background & situational context 
BASF is one of the biggest chemical companies in the world. Its product line comprises high-value-added chemicals, plastics, 
colorants and pigments, dispersions, automotive and industrial coatings, crop-protection agents, fine chemicals, oil and gas. 
Worldwide, BASF employs around 93 thousand people and operates production facilities in 38 different countries. 
BASF’s support for the environmental Principle 9 is illustrated by their work on eco-efficiency analysis and, in particular, 
the company’s efforts to promote this approach to other businesses world-wide. 
The Problem 
The purpose of BASF eco-efficiency analysis is to address disharmony and lack of integration between economy and ecology. 
This applies from product design throughout the life cycle of the product. 
Its eco-efficiency model serves as a tool for helping business activities to become sustainable. 
Since 1996 the company has gained a wide range of experience in applying this software-based instrument 
at the operational level to evaluate which business activities are worth pursuing from a sustainability point of view. 
BASF was one of the first chemical companies to develop eco-efficiency analysis for its products and processes. 
Addressing the problem 
In the first stage of the analysis one assesses the environmental impact – taking into account factors 
such as raw material and energy consumption, air and water emissions, disposal methods, potential toxicity and 
further risks. 
The second step then involves compiling economic data by calculating all the various costs involved in 
manufacturing and/ or using the product. 
Next both data sets are plotted on a graph, as shown above, to obtain the eco-efficiency of a product or process. 
By carrying out the eco-efficiency analysis for comparable alternative products or processes [those of BASF as well 
as of its competitors], 
BASF is able to detect and exploit potential environmental and economic improvements that can 
guide long-term strategic decisions. 
To date BASF has analysed around 120 of its products and production processes. 
The analysis can be used to assess the complete lifecycle of a product by taking into consideration the 
environmental impact of the product and its manufacturing processes, consumer behaviour and recycling and 
disposal possibilities. 
Results 
BASF believes that its eco-efficiency analysis provides a tool to assess the environmental soundness of different technologies.  
In a bid to diffuse this knowledge, BASF has taken steps to make its eco-efficiency analysis available to other companies and 
organisations, in particular those from developing countries.  
The company has organised symposiums for business and civil society organisations to discuss the potential of the tool and 
has organised training workshops to highlight the benefits of eco-efficiency analysis within the framework of the Global Compact.  
BASF has developed a manual that explains how to use the tool and illustrates lessons the company has learned in the course of 
applying it to their own business.  
It has joined the Global Compact agencies UNIDO and UNEP in applying the analysis in a 
demonstration at the National Cleaner Production Centre (NCPC) in Morocco.