BASF investors to quiz board over climate lobbying

BASF SE

23/04/2026 11:28

CEO Kamieth has criticised EU's emissions trading scheme

Group of investors seeks clarity on company view

Company says targets unchanged, need to reduce cost pressure

By Simon Jessop and Patricia Weiss

LONDON/FRANKFURT, April 23 (Reuters) - A group of BASF BASFn.DE investors plans to question the board over its climate lobbying at the company's April 30 annual meeting, after Chief Executive Markus Kamieth criticised the European Union's carbon emissions trading system.

The EU aims to cut greenhouse gas emissions by 90% by 2040 and prices pollution through its Emissions Trading System (ETS).

Despite the European Commission saying the ETS had helped halve emissions from electricity, heat generation and industry since 2005, Kamieth has called the system "obsolete", citing its impact on competitiveness.

Robert Hulme of West Yorkshire Pension Fund, one of the investors, said he wanted assurance that BASF's lobbying aligned with the goal of reaching net-zero emissions by mid-century.

While imperfect, the ETS was the "cornerstone" of EU climate policy, he said. "Is he (Kamieth) supportive of the EU ETS? If so, he should make a commitment and ensure future lobbying efforts are consistent with public statements."

"Voting against management would be an option for us if we wanted to escalate a concern. At the moment, the ball is completely in the hands of management."

Other investors in the group, convened by non-profit advocacy organisation ShareAction and managing 1.25 trillion euros, include Swiss non‑profit investor foundation Ethos, Swedish investor Folksam and the Strathclyde Pension Fund.

A spokesperson said BASF's climate targets were unchanged and that competitiveness was essential to make the transition economically viable. Peers including Evonik have echoed similar concerns.

"It is therefore necessary to alleviate politically driven costs in order to maintain the medium- and long-term foundation for this transition," the spokesperson said.

Vanda Rothacker, a senior ESG strategist at Union Investment, a top-30 BASF investor according to LSEG data, said she planned to speak at the AGM, citing a "discrepancy" between BASF's climate targets and its public statements.

While short-term tweaks to the ETS could make sense given cost pressures, "we view it critically that parts of the chemical industry are calling the EU ETS into question altogether".

"We call on BASF to clearly commit to its long‑term climate targets and to reflect that commitment explicitly in its lobbying activities," she said.

A top-20 BASF investor, speaking anonymously, told Reuters that lobbying for relief on costs was understandable, but how BASF used any relief would be critical, adding the company was "relatively unspecific" on its emissions roadmap beyond 2030.

($1 = 0.8499 euros)

 (Additional reporting by Christoph Steitz. Editing by Mark Potter)

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