Why progress needs courage

The future will be decided between digitalization and social participation, growth and climate protection, and globalization and a return to the old status quo.

This space requires answers – for society, policy and business. We need to find solutions that are not only inclusive but also transformational.

Never before have so many people had such incredible opportunities thanks to the inexpensive access to knowledge around the world. But knowledge alone is not enough to shape the future. The pivotal difference will come from “thinking things through”. Companies can play an important role here by contributing their existing know-how via new approaches. I see enormous potential here.

Interestingly, it is at the cross-section of where the old world and the new world meet, where new business models and new ways of thinking develop. Digitalization, including artificial intelligence, will help us to think about completely new forms of mobility, for example. Herein, it is necessary to bring the new technologies in balance with human requirements and ways of thinking. And even agriculture, the world’s oldest economic sector, is currently working to find ways how we can become more modern and sustainable over the entire value chain to help feed a global population that will soon grow to 10 billion. Today, seed production is already being refined with 3D printing, and “precision farming” is optimizing the use of crop protection products.

Innovations to benefit society

Global networks already enable new forms of cooperation that go beyond unilateralism or multilateralism. One key question for all of us will be: How do we design the future collaboration between humans and machines? The platform economy has become a key element of today’s competitive marketplace, in which highly efficient, new value chains arise. How can we structure it to both leverage existing assets and dare to try something new?   

If we want to actively shape the future, it would be wise not to believe in one possible reality. Instead, we should have the courage to think in many different scenarios. Future will not develop as 0 or 1.

Digitalization and many other new technologies, such as biotech, facilitate the development of more and more individual and increasingly precise applications. This also contributes significantly to future solutions, such as in the fields of health, environment and society. Do we already have a master plan for everything at BASF? No, we are also in a learning process. And most importantly, we have made the decision to become better every day and develop our innovations for the benefit of society.

Turning points and opportunities

Even if China and the United States end their trade conflict one day – as we all hope they do – there are growing signs that globalization and its underlying multilateralism are reaching a turning point and will have to be renegotiated. We hope this will not mean a reversion to the conflicts between nations and political blocs seen in earlier times. For companies with operations worldwide, this means an enormous responsibility. The values and decision-making systems of such companies must be globally robust.

Such turning points – Brexit being one example – are indications that we must be more proactive and transparent in our discussions with communities and stakeholder groups. In this way, we can provide clarity on our positions with regard to current and future situations as well as better use of technologies. Many people feel unsettled by potential changes.

The absolute welfare gains of globalization are still welcomed by people around the world, but there is a concern about the increasingly unequal distribution of these gains in some countries. So we, too, must ask ourselves: Where and how can we further improve existing labor and social standards? It is important that international conferences reach consensus on globally applicable rules. Therefore, the supranational level is the most appropriate for discussing and deciding on agreements, such as global standards and targets and – not least – the definition of ethical principles.

Not dividing but taking ownership

At BASF, we have decided to take our responsibility for environmental and societal issues just as seriously as we take responsibility for our necessary economic goals.

We are already on our way: With our new sustainability strategy, we have committed to climate-neutral growth until 2030. We are also intensifying our research and development efforts to find even more significant CO2 reductions. For example, within a few years we want to be able to heat our steam crackers – the heart of our petrochemical Verbund – with electrical energy from renewable sources, which would lead to a sustainable reduction in CO2 emissions. And with chemical recycling we want to transform plastic waste into a resource. With these intelligent material loops, we want to help continuously reducing the need for additional resources.

With “Value to Society” we collaborate with partners for a holistic and future-oriented approach to business steering and reporting. We asked ourselves whether the traditional forms of corporate accounting fall short and whether it isn’t time for a broader framework with additional targets beyond volume or profitability. We realized that it is possible to do things differently. In essence, we want our reporting to show social performance and environmental impact alongside our business results. Consequently, we are moving from the traditional shareholder value concept to a “system value” approach. With this paradigm shift, our planet earth is seen as an equal partner and integrated into a system with society and business. This system serves as our foundation for shaping the future.

We want to bravely embrace this opportunity with optimism as the responsibility for a society worth living in cannot be divided.