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Welcome to The Chemical Show™, where chemicals mean business. Featuring interviews with industry executives, you’ll hear about the key trends impacting chemicals and plastics today: growth, sustainability, innovation, business transformation, digitalization, supply chain, talent, strategic marketing, customer experience and much more.
Episodes are published every Tuesday.
Hosted by industry veteran Victoria Meyer, The Chemical Show brings you the latest insights into the industry. You will hear from leading industry executives as they discuss their companies, business, markets, and leadership. You’ll learn how chemical, specialty chemical, petrochemical, material science and plastics companies are making an impact, responding to the changing business environment, and discussing best practices and approaches you can apply in your business.
Victoria: Hi, this is Victoria Meyer.
This episode is the 2nd in a series
I recorded at ACC's Responsible
Care and Sustainability Conference.
When you listen to this episode
with Michael Hines, CEO of BASF
Corporation in North America,
you are in for a real treat.
One of my favorite moments comes near
the end of the episode where Mike shares
his insights on careers and leadership.
He talks about the
importance of giving 125%.
Not necessarily working 12 hour
days, but rather on being focused
and committed to delivering your
best in key moments, then resting and
recharging appropriately in between.
And in fact, this is 1 of the
things that Mike credits his
uber successful career to.
So you definitely want to listen to that.
We also discussed the role of
Responsible Care and sustainability
at BASF, the efforts it has
taken to decarbonize its energy.
Value chain and keys for driving
alignment across businesses.
I think you're going
to enjoy this episode.
So here you go.
voiceover: A key component of the
modern world economy, the chemical
industry delivers products and
innovations to enhance everyday life.
It is also an industry in transformation
where chemical executives and
workers are delivering growth and
industry changing advancements while
responding to pressures from investors,
regulators, and public opinion.
Discover how leading companies
are approaching these challenges
here on the chemical show.
Join Victoria Meyer, president
of Progressio Global and
host of the chemical show.
As she speaks with executives across the
industry and learns how they are leading
their companies to grow, transform, and
push industry boundaries on all frontiers.
Here's your host, Victoria Meyer.
Victoria: This is Victoria Meyer.
Welcome back to The Chemical Show.
Today, I am speaking with Michael
Heinz, who is the CEO of BASF North
America, , and a member of the Board
of Directors there, as well as a member
of the Board of Directors of ACC.
And we're here at ACC Sustainability
and Responsible Care Conference.
Mike, thanks for joining me today.
Michael Heinz BASF Audio:
Thank you for having me.
Victoria: Absolutely.
Well, let's start talking about
Responsible Care since that's a
center point of this conference.
What's the role of
Responsible Care at BASF?
Michael Heinz BASF Audio: Well
Responsible Care is a volunteer program
that has been around for over 30 years,
and BASF has implemented it in 2007,
and it's basically a set of rules
and procedures to make sure that we
continuously advance in, uh, in safety
environment and in also health aspects.
And we apply that in all of
our subsidiaries around the
globe and in all the companies
where we have a majority stake.
Victoria: Awesome.
So you've actually taken it
and applied it elsewhere, even
though it's outside of the U.
S.
Michael Heinz BASF Audio: Definitely.
It's a global program.
Yeah.
Victoria: It is.
And it's, of course, it's
great principles as well.
Um, so when we think about
sustainability, you're chair of the
Sustainability Committee for ACC,
and I guess the question I have is
really, how do you reach alignment?
There's such a diversity of
companies, of leaders, of interests,
that it's challenging, right?
We know it's challenging when we're
inside the same company, but much less
when we're across companies, it can
be challenging to reach alignment.
What do you find to be critical?
Michael Heinz BASF Audio: Well, on
one hand, yes, I mean, sometimes it's
challenging to find alignment, but
we're all working for the same industry.
And as we work for the same industry,
we also also face the same challenges,
but we also have the same opportunities
because when you look at the chemical
industry, I mean, chemicals, that is
basically the mother of all industries.
And, uh, 96 percent of all the
products and goods that are being
produced are enabled by chemistry.
And that's what we have to focus
on as a group in ACC by saying,
what can be our contribution.
What are some of the innovations that
we can move forward in order to solve
some of the challenges that we face
as an industry and also as a society?
Victoria: So what are the priorities?
What are the most important things
that the committee is working on today?
Michael Heinz BASF Audio: I
think there are two, two things.
I mean, at least from a
sustainability aspect, one is
circularity and then the other thing
is reducing, reducing greenhouse gases.
So it's really how can we make some
of our products slightly different?
How can we use some of
our products different?
Can we keep them longer in the loop?
And then if they're at the end
of their life cycle, how can we
better recycle those products?
Victoria: Yeah.
So it's the, the full life
cycle is really critical there.
Um, turning to BASF, right?
So when you think about the company,
what are BASF's priorities as it relates
to sustainability and even as it really
interfaces with the business, right?
Because it's obviously a
key element of business.
Michael Heinz BASF Audio: I mean, first,
uh, our key priority is embedded in our
purpose and our purpose is we create
chemistry for a sustainable future.
And we want to be the preferred
supplier off the chemical
industry in order to enable the
transformation of our customers.
And, uh, and that's what we are driven by.
And that's, uh, that's where our
112, 000 people folks around the
globe are really passionate about.
Victoria: Yeah.
And how are you, uh, how is BASF
adapting given the economic challenges,
the supply chain challenges, the
energy challenges that we've seen?
Really, in the last couple of years?
Michael Heinz BASF Audio: I mean, on
the obviously, I mean, we are very
energy intensive type of industry.
And just to give you a number,
I mean, BASF energy demand is
as high as the country of Greece
or the country of Portugal.
So energy for us is, is really I mean,
something that is very, very important.
So, and what we have done is we are
shifting more and more to green energy.
Um, and so 60 percent of our energy supply
by 2030 will come from green energy.
And what we have done, um, primarily in
Europe, because there it was possible
was to get access to an equity stakes
into wind parks, I mean, to produce
our own green energy, but we also
have it in our new Verbund site in,
in Zhanjiang in the southern part of
China, where it will be enabled by
wind power and also by solar power.
And also the United States, we have
a lot of, uh, uh, agreements with, uh,
companies, solar companies, and also
wind companies for PPAs or virtual PPAs.
Victoria: Yeah.
That makes sense.
And I saw that recent announcements
about the equity acquirement of, uh,
wind farms, which is really exciting.
Michael Heinz BASF Audio: I would
have never thought that we would,
become owner of a wind park for sure.
Victoria: No.
In fact, you know, often I think,
uh, as business leaders and
strategists, we think, okay, what's
really our core capability, right?
And you focus in on your core
capability, which you would not
assume to be wind other than , you
know, being good talkers...
Michael Heinz BASF Audio: True but one
of our core capabilities, believe it
or not, is actually producing energy
because, uh, we were producing energy for
the last, uh, let's say a hundred years.
So 50% of the energy
requirement that I spoke about.
We always produced ourselves.
And now we just produce
it via a wind power.
Victoria: Right.
So it's a new version of a co gen unit.
Michael Heinz BASF Audio:
If you want so, yes.
Victoria: Awesome.
Um, so you know, when you think about
the challenges of navigating across
multiple landscapes, we've already
touched on the fact that you're
taking some slightly different energy
approaches in the sense of equity
ownership of energy in different regions.
How do you think about leveraging
sustainability and navigating just
the different challenges, regulations,
opportunities by region, because
there's obviously differences.
Michael Heinz BASF Audio: There are
differences and, uh, some regions
obviously have different type of timelines
or different type of priorities, but
as we operate in all regions around
the globe, we just have to adhere
to whatever the regulation is and
ultimately I think down the road some
of those regulations will converge.
So which then just means I mean our
goal is we set out certain goals and
uh, and when it comes for example to
CO2 reduction and there we don't have
regional goals we have a global goal.
And yes there are certain regulatory
requirements which are different but
we are using also ACC for example in
order to lobby A price on carbon and
that is something that we, for example,
advocate for on a, on a global basis.
Victoria: Yeah.
And absolutely.
And I think, uh, I think that's right.
You've talked about it.
ACC talks about it.
I hear people across the industry
talking about the need for alignment.
of some of these regulations, um, and
it also being, you know, science based
and being really logical and making
sure that we're not being, uh, confined,
um, by what makes sense today, but
maybe won't make sense in the future.
Michael Heinz BASF Audio:
And it's for sure a journey.
It's something that
you have to keep going.
Keep doing.
I mean, for a long, long time.
Victoria: Yeah.
Awesome.
Well, Mike, let's, let's turn and
talk about leadership a little bit.
So you have obviously led a really
great and successful career in the
industry and at BASF moved into a senior
level from quite an early, uh, age or
time in your career, um, have been on
the board of directors for 13 years.
To what do you attribute that
success and being able to take on
those really big responsibilities
from an early part of your career.
Michael Heinz BASF Audio: I
think I always had a couple of,
uh, let's say models in my life.
I was always very ambitious that
comes from sport because I was
playing semi professional sport.
Um, but I had a lot of ambitions
without being too ambitious and that
might sound a little strange to you,
but what it means was that I was always
giving 125 percent at what I was doing.
And I was always curious and I was
always trying to give it my best.
And I was not necessarily looking for
my next job, but just putting a lot of
rubber on the road and giving it 125%.
And I don't really mean working 12 hours
instead of 10 or, uh, yeah, it, it, it
just means to, I mean, When the coach
says you really got to accelerate you
accelerate and when the coach says you
should rest you also take some rest But
you really you really try to give it your
best at what you do And that, I think,
has caused others to see something in
me and provide me with opportunities
in the company, um, and jobs that
were always one size too large for me.
And then, uh, and then I started to
grow into it, um, because you have to
realize that once someone gives you a
job where they tell you this, you can do
easily, you're at the end of your career.
Oh
Victoria: That is really true.
Uh, well, I I may just leave it at that.
Um, it's a good closing remark Well, Mike,
thank you so much for joining me today.
I really appreciate your time
Thanks for
Michael Heinz BASF Audio: having me.
Victoria: Thank you for joining us on
today's episode of The Chemical Show.
Keep listening, keep following,
keep sharing, and we'll
talk with you again soon.
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