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BASF Sets Target for Sustainable Solutions & More Circular Products

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BASF SE’s (BASFY - Free Report) Performance Materials unit recently outlined its plans to achieve carbon neutrality by 2050 and highlighted critical milestones on the path to a circular economy. With this, the division, which brings together all of BASF's materials know-how for innovative and tailored plastics, positions itself at the forefront of the much-needed plastics sustainability transition.

BASF’s Strategic Roadmap

BASF has established specific targets to reduce carbon emissions by 25% by 2030 compared with 2018 (scope 1 and 2) and 15% compared with 2022 for scope 3.1, with the ultimate goal of becoming carbon neutral by 2050. The first and most crucial stage in the company's carbon management strategy is to boost the use of green electricity.

Green electricity plays an important role in BASF's value chain, especially in scope 3.1. BASF's supplier, 3B Fibreglass, provides glass fibers for thermoplastic and thermoset polymers. 3B Fibreglass cuts carbon emissions greatly by generating electricity using solar panels. BASF's products and customers benefit from the lower carbon footprint of glass fiber products. This demonstrates the possibility of a circular economy with all players committed to sustainability. 

BASF is certifying its manufacturing locations globally using ISCC PLUS and REDCert. The majority of Performance Materials sites have at least one scheme certification, and by the end of 2024, more sites will have certification across all regions.

BASF is exploring mass balance solutions to meet customer demands across industries and integrate more circular feedstock into its product portfolio. BASF Performance Materials aims to achieve at least 20% of its sales from the circular economy by 2030. This will be achieved by products that replace fossil feedstock with circular feedstock by at least 20%. BASF's biopolymer range is an effective option for certified compostable packaging and agricultural applications, contributing significantly to this aim. Biopolymers help reduce food waste, recycle organic waste, return nutrients to soil and prevent microplastic accumulation in agricultural soil.

Shares of BASFY have gained 0.8% over the past year against an 8.1% decline of its industry.

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Zacks Rank & Key Picks

BASFY currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Newmont Corporation (NEM - Free Report) . 

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have soared 125.1% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO, a Zacks Rank #1 stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have rallied roughly 80.5% in the past year.

The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82, indicating a rise of 75% from the year-ago levels. The consensus mark for NEM’s earnings has increased 14% in the past 60 days. NEM, a Zacks Rank #1 stock, has gained nearly 35.7% in the past year. 

 

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