- Stakeholders sharply criticise BASF’s measures to implement human rights and environmental due diligence, especially in South Africa
- Holding on to Harbour Energy implies co-responsibility for environmental and human rights violations in Argentina
- Virtual format of the Annual General Meeting and disproportionate dividend proposal criticized
On the occasion of today’s Annual Shareholders’ Meeting of BASF, the Association of Ethical Shareholders Germany is calling on shareholders to refuse to approve key proposals of the management. In several countermotions, the association sharply criticises BASF’s unsustainable dividend policy, its implausible climate strategy and, above all, its inadequate response to human rights violations. Representatives of two communities that suffer directly from the consequences of BASF’s hunger for raw materials clearly illustrate these issues.
South Africa: Ineffective audits with fatal consequences
Despite years of efforts by BASF with the platinum supplier Sibanye-Stillwater, there have been no substantial improvements in the precarious living conditions in the mining communities around Marikana in South Africa. Lack of access to water, insufficient involvement of the communities in audits and a lack of transparency regarding environmental and health risks continue to be serious problems.
Gomotsegang Brown Matloko from Wonderkop community in Marikana: “Our true measure of BASF’s commitment on its supply chains lies in tangible outcomes on the ground. Concerning the effects of Sibanye-Stillwater’s mining operations, we still see a dangerous gap between stated intentions and reality relating to human rights, environmental and safety concerns. Despite years of dialogue, audits, and supposed pressure by BASF, the promised improvements remain largely elusive. Sibanye-Stillwater is not taking my reports on overflowing dams and emissions, which pose an acute threat to the health of my community, seriously. I call on BASF to take action on this very issue, so that supply chain responsibility does not remain just an empty word in BASF’s reports.”
Eric Mokuoa, programme leader at Bench Marks Foundation: “The Bench Marks Foundation is concerned about the company’s inaction since the dialogue and we perceive this as defiant response flying in the face of spirit of meaningful dialogue.”
Argentina: BASF continues to share responsibility for environmental and human rights violations
By continuing to hold a significant stake in Harbour Energy, BASF remains responsible for the climate-damaging business model and highly damaging fracking in Argentina.
Orlando Carriqueo, spokesperson and member of the indigenous parliament of the Mapuche and Tehuelche of the Argentinean province of Rio Negro: “The exploitation of Vaca Muerta using fracking technology has irreparable consequences for the area, including the loss of biodiversity and the alteration of the livelihoods of the local people. They live in constant fear of earthquakes. Oil waste, which is heavily contaminated, is stored in open areas and pollutes vital rainwater channels and rivers. The international companies that exploit Vaca Muerta are to blame. They systematically violate the human rights of the indigenous population and have not respected their right to consent. Instead, they change laws in their favour and criminalise and persecute indigenous leaders.”
Dividend inappropriately high – investments and transformation neglected
The Association of Ethical Shareholders Germany is calling for more investments instead of disproportionately high dividend payouts. BASF must invest significantly more in its own sites in order to create prospects for the future – especially at the Ludwigshafen site – in order to consistently move away from dependence on climate-damaging energies and achieve its own climate targets.
Tilman Massa, Co-Director of the Association of Ethical Shareholders Germany: “It simply doesn’t add up when the Executive Board talks about a crisis, announces ever-increasing savings programmes and job cuts, but still wants to pay out over EUR 2 billion in dividends and benefits from state subsidies.”
The Association of Ethical Shareholders Germany also rejects the authorisation of the Board of Directors to hold future Annual General Meetings purely virtually, which is once again being put to the vote. “Purely virtual Annual General Meetings lead to dwindling interest and make dialogue and exchange more difficult. We are calling for a hybrid format that allows active participation both online and in person,” Massa continued.
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Countermotions by the Association of Ethical Shareholders Germany with further points of criticism
Press contact:
Tilman Massa, Association of Ethical Shareholders Germany, dachverband[at]kritischeaktionaere.de, Phone: 0221 599 56 47, Mobile: 0173 713 52 37
