as Basis for Partnerships An E xample Food Fortification 1 2282014 2 The Company at a Glance 1 BASF The Chemical Company Our Corporate Purpose We create chemistry for a sustainable future ID: 1047699
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1. Public Private Dialogue as Basis for PartnershipsAn Example: Food Fortification12/28/2014
2. 2The Company at a Glance1. BASF – The Chemical Company
3. Our Corporate Purpose: We create chemistry for a sustainable future.The world’s leading company in chemical industryOffers intelligent system solutions and high-value products for almost all industriesSales 2012: € 72.129 billionMore than 110,000 employeesBASF – The Chemical CompanyOverview
4. BASF – The Chemical Company Sustainability Selected AwardsCarbon Disclosure ProjectClimate Disclosure Leader 2013Dow Jones Sustainability Index BASF share included in DJSI World for 13th consecutive yearChina Green Companies Top 100 BASF honored for its commitmentLEED (Leadership in Energy and Environmental Design)BASF honored for sustainable construction
5. ScientistsEmployeesCustomer / PartnersBASF relevant publicInternal co-creation: leverage collaboration among employees to generate ideas and/or solve problemsExternal co-creation: involve customers, suppliers, partners, scientists and other relevant stakeholders to generate value for all partiesSource: Project "150" Creating value together with our stakeholdersBASF – The Chemical CompanyDialogues and PlatformsThe Concept of Co-Creation
6. Sustainability requires dialogue and partnership with stakeholdersBASF – The Chemical CompanyDialogues and PlatformsMulti-stakeholder initiativesBusiness associations & networks at corporate levelBi-lateral stakeholder consultations
7. Sustainability requires dialogue and partnership with stakeholdersBASF – The Chemical CompanyDialogues and PlatformsChemistry³ - The Sustainability Initiative of the German Chemical IndustryIntegrated Reporting on SustainabilityAgro-Political Initiative: Samruddhi – Prosperity for the Customer, Prosperity for the Organization and Prosperity for India
8. Concepts & BASF Contributions2. Food Fortification
9. In the next 12 months, vitamin and mineral deficiencies will cause: 1 million children to die before the age of five 50,000 women to die during or soon after childbirth 19 million infants to be born with impaired mental capacity 100,000 infants to be born with preventable physical defects 6 billion US$ to be lost in adult work performance Food FortificationFacts and FiguresSince 2004, the Copenhagen Consensus have consecutively rated addressing vitamin and mineral deficiencies as one of the best investments into human development - from a cost-benefit perspective
10. Food-Fortification is the practice of deliberately increasing the content of an essential micronutrient, […] in a food, so as to improve the nutritional quality of the food supply and provide a public health benefit.* In food fortification, private sector activities are aligned with public sector/NGO engagement. * Source: “Guidelines on food fortification with micronutrients”, WHO & FAO Essential MicronutrientsVitamin AIronCommon Food VehiclesEdible oilFlourRice MilkSugar IodineZincFood FortificationThe Process
11. Short termMedium termLong termFood FortificationReaches large numbers of consumerEating habits can be maintainedMarket-based applicationIndependent of public health financingDietary diversificationImplemented through behavioral changeDiversification in agricultural food production often necessaryDepends on purchasing power and knowledge/educationTime and cost intense SupplementationSupplements with highly concentrated vitamins and minerals in form of capsules, tablets or food-based sachets (“SprinklesTM”)Implemented as part of health care or targeted campaignsVitamins&MineralsFood FortificationComplementing Interventions
12. Business successPartnershipsInnovationCommunicationCSREmployerBrandingMarketaccessDual Bottom Line benefits estimated 1.5 times of sales valuePurely humanitarian projects are done by the BASF Social FoundationFood FortificationBusiness Case: Shared Value
13. AdvocacyTech. TrialsVoluntaryLaw & ComplianceBaseline DataStakeholder DialogueMediaAnalyticsTech. TrainingPilotsStandardsLabellingLegislationTest KitsAdvocacyTechnical TrailsVoluntary FortificationLaw & ComplianceFour Steps to Large-Scale ImpactFood FortificationClock Model for Project Sequences
14. Food FortificationManaging Multi-Stakeholder ProgrammesAn efficient food fortification programme requires multi-stakeholder dialoguesLocal food producers (private sector) carry out market-based programme implementation.Government agencies (public sector) aim to solve a public health problem through food fortification.Local research institutions (academia) deliver scientific data on the impact of malnutrition for the sake of programme evaluation.NGOs (social sector) represent consumers' interests and often campaign using social marketing. BASFCollaboration&Dialogue
15. Producers: In-house Quality Check FDA/Bureau of Standards: Screening Laboratories:Control Screening with Test KitScreening with Test KitHPLC (High performance liquid chromatography)Company Level Quality ControlExternal Quality ControlNumber of samples$ 0.05 – 0.10$ 50 – 100$ 8 – 15 BASF Test Kits offer a cost-effective approach to company quality checks to complement external quality controlFood FortificationTechnical Supply and Support
16. Reach in thetarget group§ Same products differ in packaging material and size depending on BoP segment Upper market segmentsnacks, milk, bottled oil …Middle class pouches BoP barrelsFood FortificationReaching the Base of the Pyramid
17. SAFO has reached 140 million people at risk of malnutritionNutrition re-positioned in German Development CooperationObjective:Improve access by low-income population groups to vitamin A –fortified staple foodsGIZBASFFacilitation of multi-stakeholder dialogueTechnical advice for fortifying food producersCapacity building of national institutionsImprove development of business models Advice governments to develop local industry standards and labeling schemesOffer analytic training, provision of mobile laboratory equipmentAdvice governments on the introduction of legislationProvide product & packaging solutions STRATEGIC ALLIANCE FOR THE FORTIFICATION OF OILAND OTHER STAPLE FOODSResultFood FortificationThe Example of SAFO
18. Common goalMutual benefitComplementing ContributionsDiverging interestsDiffering motivesPrivate SectorPublic SectorFood FortificationPartnership Solutions
19. Food FortificationFurther Partnership-ProjectsCompetitive African Rice Initiative (CARI)Better Rice Initiative Asia (BRIA)Oilseed Initiative Africa (OIA)Potato Initiative Africa (PIA)
20. Food FortificationFurther Partnership-ProjectsAffordable Nutritious Food For Women (ANF4W)
21. Imagine essential nutrition affordable for everyone.www.food-fortification.com2/28/201421