World’s Largest Chemical Maker Faces Reckoning When It Comes to Emissions

  • Petrochemicals will drag on company’s near-term ESG progress
  • Smaller companies may be able to boost ratings via divestments
Steam cracker IISource: BASF SE
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For more than a century, BASF SE has stuck by its strategy of running sprawling, integrated chemical plants, even as rivals including DuPont Co. break up. This degree of industrial might risks being a hindrance when it comes to environmental credentials.

The world’s largest chemical maker obtained a high overall environmental ranking among diversified peers in Bloomberg’s ESG scores. Yet some lower-performing rivals are selling their most carbon-intensive assets, an option BASF doesn’t have under its current strategy.