As part of BASF's global strategy for 1,4-butanediol (BDO), it has analyzed the market environment and the carbon footprint of BDO and its downstream products at various production sites worldwide. The BDO value chains are under increased competitive pressure and characterized by global overcapacity. In addition, coal-based BDO and polytetrahydrofuran produced in Korla, China have a significantly higher carbon footprint due to the use of coal as feedstock and the energy-intensive production process. In the future, BASF will adjust its global portfolio of BDO and related downstream products to offer competitive products with a low carbon footprint.

The situation in the Xinjiang region has always been part of BASF's overall assessment of its joint ventures in Korla, China. Regular due diligence, including internal and external audits, has found no evidence of human rights abuses in the two joint ventures. However, recently published reports on the joint venture partner contain serious allegations that point to activities that are not in line with BASF's values. Therefore, BASF will accelerate the ongoing process to divest its shares in the two joint ventures, subject to negotiations and the necessary approvals from the relevant authorities.