Worldwide BASF has been recognized as the Most Admired Chemical Company by the world’s leading business publication Fortune Magazine and has been listed in Dow Jones Sustainability Index for several consecutive years. BASF’s on-going efforts in sustainable development in China has also been recognized by the public and stakeholders since 2005: BASF was granted the laureate of "2005 China The Corporate Citizenship In Action Award", by the 21st Century Business Herald, one of the top business media in China in December 2005. In early 2006, BASF was voted as one of the 2005 Top 10 Most Responsible Enterprises in China by China NewsWeek, an influential magazine sponsored by the China News Agency and supported by the State Council.

Employees: Within the Asian Chemical industry, BASF is recognized as a preferred employer because of its known support to staff's professional development, involving employees in the company's success and cultivating an atmosphere of mutual trust and respect among employees.

In China, we have over 4,000 employees and total employment will increase further when new investment projects become operational in 2005 and 2006. We are committed to developing management competence and expertise in the region. For our employees, we greatly encourage personal development and provide our own training programs for attractive local and international careers. So far, more than 750 employees in China have attended our Management Training Asia program.

Customers: “We produce products that are safe to manufacture, use, recycle and dispose of.” This fundamental statement documents BASF’s overall position in regard to product safety. In China, safety seminars have been held to coach customers on proper handling of specific chemicals.

One of our largest customers in China, Yantai Spandex Co. Ltd awarded BASF “Best Business Partnership “ in 2004 to recognize BASF’s value-adding efforts.

Cooperation with local authorities and partners: In June 2004, BASF and the Chinese Research Academy of Environmental Sciences (CRAES) under the State Environmental Protection Administration (SEPA) signed an agreement to initiate strategic cooperation by jointly establishing a Benz M111 engine testing laboratory in Beijing. The laboratory will operate according to internationally standardized testing procedures, and will be responsible for setting and supervising product standards related to fuel quality; assessing the quality of Chinese gasoline; improving the quality of fuels for motor vehicles and reducing emission. The ultimate goal is to bring about a cleaner environment in China. The lab started operation from the end of 2005.

In China, we join forces with our partner SINOPEC not only in our investments, but also as fellow founding members of the China Sustainable Development Business Council established in January 2004. We have been very active in the organization and attended the Corporate Soical Reponsibility Roundtable held in November 2004. BASF is committeed to participate in the sustainable growth with its Chinese partners and customers and share the best practices and experiences gained over the years.

Suppliers: BASF regularly audits its suppliers. If the environmental, health and safety standards required by BASF are not in place, the company applies its expertise to help the supplier meet its expectations. For example, BASF together with a Chinese supplier of a toxic raw material developed an action plan that involved, among other things, the change of the supplier’s production process from open to closed systems and the use of personal protection equipment according to the needs of the workstations.

SD Symposim: BASF organized together with other partners in 2002 and 2004 the sustainable development symposiums in China, which provided a platform for sharing achievements and experiences by government authorities, industry sectors and academics on the subject.

Public welfare:

BASF Kid’s Lab
BASF offered unique hands-on chemical experiments to Chinese children at Kids’ Lab. Introduced into Beijing in 2002, the Lab has been provided consecutively for 5 years now in Nanjing ,Beijing and Shanghai. So far 56,000 school children have participated in the event. The event evoked their interest in science and chemistry and helped them realize that chemistry exists everywhere in our daily life. Items of experiments are all related to environmental protection, for example, waste paper recycling and waste water clarifying. We hope to emphasis the theme of environmental protection to the largest extent in this course. Kid’s lab pays special attention to social vulnerable groups, for instance, deaf and mute school kids and children from disable parents and migrant workers. Meanwhile, our activities provide great opportunities of social practice for high-school students in summer holiday. BASF will continue to stage Kids' Lab in China to help more and more Chinese children to learn more about innovation and sustainability and bring along with them when they grow up.

SINO-German Fund
BASF also supports Chinese universities and research institutes in achieving scientific excellence. The BASF Sino-German Research & Development Fund was established in May 1997 to support collaborations with Chinese universities and relevant institutes of the Chinese Academy of Sciences through grants and scholarships. The Fund has by far supported 51 research projects, and over 1200 postgraduates and undergraduates benefited from 14 scholarship programs.

Science Tunnel
In 2006, BASF sponsored “Science Tunnel” exhibition Shanghai from Aug 3rd to Oct 7th. “Science Tunnel” is the world’s top-tier innovative multimedia exhibition developed by Max Planck Society, Germany's Nobel laureate powerhouse. Targeted toward youngster aged above 15 years old, the exhibition provides the general public with the opportunity to learn the most advanced and cutting edge science research. Visitors can move through 12 stations and have zero distance experience to science. Hundreds of large-format images and video clips, and interactive exhibits provide visitors with a fascinating insight into the hidden worlds of the micro- and macro-cosmoses,
BASF believes access to education is essential for a China to development into a just and sustainable society. Through constant support to education, BASF wants to awaken public interest in science and technology, which we hope will lead them to further explore ideas that may someday change the world that contribute to a sustainable future.

In 2005, BASF sponsored “Science Tunnel” exhibition Ludwigshafen in Germany——the head quarter of BASF group. From there, BASF sponsored & supported Science Tunnel tour exhibitions in Tokyo and Singapore and Shanghai in 2006.

Fascinating Future in Harmony--Young Artist Photo Competition
In 2005, together with Xiao Hui Wang Art Workshop Tongji University, BASF organizes a Young Artist Photo Competition-- Fascinating Future in Harmony. The competition attracted around 26,000 pieces of work by professional and amateur photographers from Shanghai, Beijing, Tianjin and Sichuan Province. Sponsored by BASF, 10 “Young Artists” have been selected to travel to Germany for communication and learn with international photographers.

The impressive point of this contest is that it emphasis creativity and vibrancy in artistry photography. It perfectly expresses BASF’s values that we constantly hold in our business activities. It is a unique expression of both China's quest for harmony and BASF's fundamental value of sustainability and sustainable success, which we define as the balance of economic success, social responsibility and environmental protection.

Employees’ Voluntary Activities
BASF not only view itself as a corporate citizen, but also encourage the employees to take active part in social welfare activities. Employees in BASF Shanghai made up a voluntary team to work as teachers in the spare-time classes organized by the Disabled Association, Huangpu District for students from disabled families, hoping to help create better chance for their study and development in the future. This assistance not only offers knowledge and encouragement to students, but also provides love and care to them.

Community relationship

BASF always cares about local communities. In early this year, together with other partners, BASF made donation to set up “Chemical Classes” at two local schools as a step to develop local talents. BASF-YPC Co. Ltd. donated 200,000-yuan worth of computuers and other teaching facilities to a local elementary school in June 2004.

So far, BASF-YPC Co Ltd. has proactively communicated with the community by holding three dialogues with local government authorities and neighbouring communities about environment protection and safety management.A series of follow-up actions including emergency response communication network with local community and local employment plan were initiated and implemented.

In November 2004, BAPC held the “Open Day” .In 2003, the “Opening Day” also was organized in BASF JCIC Neopentylglycol Company Limited in Jilin and other site.

For more information, please contact: Ms. Cora Cai, BASF, caixmc@basf-china.com.cn