Climate risk summary for BASF — Chemicals, Germany
BASF is the world's largest chemical company, headquartered in Ludwigshafen, Germany. With operations spanning agriculture, materials, chemicals, and surface technologies, BASF faces significant transition risks from carbon pricing and decarbonization of chemical processes, as well as physical climate risks across its global manufacturing footprint.
Greenhouse gas emissions across all scopes — current year and reduction trajectory
Emissions are modelled using machine learning models trained on reported emissions from 9,000+ public companies. Non-linear patterns are encoded into estimates using financial metrics as inputs.
Find out more here →Financial value at risk from transition and physical climate exposures
Financial impact of carbon pricing, regulatory costs, and market transition on company value
| Metric | 2025 Baseline | 2025 w/ Targets | 2030 Baseline | 2030 w/ Targets | 2050 Baseline | 2050 w/ Targets |
|---|---|---|---|---|---|---|
| Income Statement | ||||||
| EBITDA | -$484.4M | -$484.4M | -$1.3B | -$970.4M | -$10.9B | $0.0M |
| EBITDA Margin | -0.0% | -0.0% | -0.0% | -0.0% | -0.1% | 0.0% |
| EBIT | -$484.4M | -$484.4M | -$1.3B | -$970.4M | -$10.9B | $0.0M |
| Net Income | -$168.8M | -$168.8M | -$442.6M | -$338.1M | -$3.8B | $0.0M |
| Net Income Margin | -0.0% | -0.0% | -0.0% | -0.0% | -0.0% | 0.0% |
| Carbon Cost | ||||||
| Carbon Cost | $484.4M | $484.4M | $1.3B | $970.4M | $10.9B | $0.0M |
| Carbon Cost % Revenue | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% |
| Carbon Cost Cash Outflow | $484.4M | $484.4M | $1.3B | $970.4M | $10.9B | $0.0M |
| NPV Carbon Costs | $30.1B | $8.8B | — | — | — | — |
| Balance Sheet & Credit | ||||||
| Total Assets | $0.0M | $0.0M | -$578.6M | -$484.5M | -$12.8B | -$2.0B |
| Total Debt | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M | $0.0M |
| Total Equity | $0.0M | $0.0M | -$578.6M | -$484.5M | -$12.8B | -$2.0B |
| Retained Earnings | $0.0M | $0.0M | -$578.6M | -$484.5M | -$12.8B | -$2.0B |
| Debt / EBITDA | 0.10 | 0.10 | 0.18 | 0.13 | 0.43 | 0.00 |
| Interest Coverage | -0.59 | -0.59 | -1.55 | -1.18 | -13.24 | 0.00 |
| Cash Flow | ||||||
| Free Cash Flow (Levered) | -$168.8M | -$168.8M | -$442.6M | -$338.1M | -$3.8B | $0.0M |
| Ending Cash Position | $0.0M | $0.0M | -$578.6M | -$484.5M | -$12.8B | -$2.0B |
| Valuation | ||||||
| Debt/EBITDA ratio | 0.10 | 0.10 | 0.18 | 0.13 | 0.43 | 0.00 |
| EV/EBITDA Valuation | -$2.6B | -$2.6B | -$5.7B | -$4.4B | -$22.2B | $0.0M |
| P/E Valuation | -$4.5B | -$4.5B | -$8.6B | -$6.6B | -$26.3B | $0.0M |
| EV Erosion (DCF) | -$0.4M | -$0.1M | — | — | — | — |
| Blended TVaR | -$3.6B | -$3.6B | -$7.2B | -$5.5B | -$24.3B | $0.0M |
Enterprise value at risk from acute and chronic physical climate hazards
Climate hazard exposure across 7 assets — average annual loss by peril and scenario
AAL represents the expected financial loss from a physical hazard in any given year, averaged across all possible event intensities and their probabilities. It is derived from hazard models that combine historical climate data with forward-looking scenario projections, applied to each asset's location, construction type, and replacement value. Baseline AAL reflects current climate conditions; Scenario AAL incorporates projected shifts in hazard frequency and severity under each warming pathway.
Find out more here →| Asset | Value | Wildfire AAL | Cyclone AAL | Coastal Flood AAL | River Flood AAL | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Baseline | RCP 4.5 | RCP 8.5 | Baseline | RCP 4.5 | RCP 8.5 | Baseline | RCP 4.5 | RCP 8.5 | Baseline | RCP 4.5 | RCP 8.5 | ||
| NAFTA Region Olefins Complex Cogen Fac | $85M | $97K | $119K | $121K | $166K | $1325K | $1847K | $3453K | $1807K | $1719K | $5K | — | — |
| BASF Freeport Works | $95M | $60K | $103K | $91K | $1257K | $3641K | $4411K | — | — | — | $11K | $6K | $11K |
| Ludwigshafen | $13B | — | $0K | $0K | — | — | — | — | — | — | $838K | $1048K | $823K |
| Geismar | $85M | $181K | $241K | $253K | $83K | $747K | $911K | — | — | — | $127K | $203K | $171K |
| Ludwigshafen Süd power station | $320M | — | $0K | $0K | — | — | — | — | — | — | $182K | $243K | $147K |
| Ludwigshafen Mitte power station | $405M | — | $0K | $0K | — | — | — | — | — | — | $82K | $106K | $96K |
| Schwarzheide power station | $135M | — | $0K | $5K | — | — | — | — | — | — | $0K | $0K | $0K |