WEBVTT NOTE This file was generated by Descript 00:00:00.369 --> 00:00:01.969 Victoria: Hi, this is Victoria Meyer. 00:00:02.329 --> 00:00:08.479 This episode is the 2nd in a series I recorded at ACC's Responsible 00:00:08.479 --> 00:00:10.179 Care and Sustainability Conference. 00:00:10.669 --> 00:00:15.399 When you listen to this episode with Michael Hines, CEO of BASF 00:00:15.409 --> 00:00:19.519 Corporation in North America, you are in for a real treat. 00:00:20.239 --> 00:00:26.549 One of my favorite moments comes near the end of the episode where Mike shares 00:00:26.549 --> 00:00:28.959 his insights on careers and leadership. 00:00:29.369 --> 00:00:33.019 He talks about the importance of giving 125%. 00:00:33.674 --> 00:00:38.284 Not necessarily working 12 hour days, but rather on being focused 00:00:38.284 --> 00:00:42.664 and committed to delivering your best in key moments, then resting and 00:00:42.664 --> 00:00:45.304 recharging appropriately in between. 00:00:45.574 --> 00:00:49.134 And in fact, this is 1 of the things that Mike credits his 00:00:49.514 --> 00:00:51.134 uber successful career to. 00:00:51.314 --> 00:00:53.404 So you definitely want to listen to that. 00:00:53.714 --> 00:00:56.944 We also discussed the role of Responsible Care and sustainability 00:00:56.944 --> 00:01:02.094 at BASF, the efforts it has taken to decarbonize its energy. 00:01:02.619 --> 00:01:07.639 Value chain and keys for driving alignment across businesses. 00:01:07.989 --> 00:01:09.749 I think you're going to enjoy this episode. 00:01:09.819 --> 00:01:10.879 So here you go. 00:01:16.040 --> 00:01:18.840 voiceover: A key component of the modern world economy, the chemical 00:01:18.840 --> 00:01:22.380 industry delivers products and innovations to enhance everyday life. 00:01:22.900 --> 00:01:26.890 It is also an industry in transformation where chemical executives and 00:01:26.890 --> 00:01:30.520 workers are delivering growth and industry changing advancements while 00:01:30.520 --> 00:01:34.260 responding to pressures from investors, regulators, and public opinion. 00:01:34.810 --> 00:01:37.750 Discover how leading companies are approaching these challenges 00:01:37.760 --> 00:01:39.360 here on the chemical show. 00:01:39.830 --> 00:01:43.170 Join Victoria Meyer, president of Progressio Global and 00:01:43.180 --> 00:01:44.600 host of the chemical show. 00:01:44.875 --> 00:01:49.075 As she speaks with executives across the industry and learns how they are leading 00:01:49.075 --> 00:01:54.655 their companies to grow, transform, and push industry boundaries on all frontiers. 00:01:54.995 --> 00:01:57.245 Here's your host, Victoria Meyer. 00:02:00.117 --> 00:02:01.257 Victoria: This is Victoria Meyer. 00:02:01.267 --> 00:02:02.867 Welcome back to The Chemical Show. 00:02:02.927 --> 00:02:08.977 Today, I am speaking with Michael Heinz, who is the CEO of BASF North 00:02:08.977 --> 00:02:12.817 America, , and a member of the Board of Directors there, as well as a member 00:02:12.817 --> 00:02:14.467 of the Board of Directors of ACC. 00:02:14.737 --> 00:02:18.947 And we're here at ACC Sustainability and Responsible Care Conference. 00:02:19.687 --> 00:02:21.417 Mike, thanks for joining me today. 00:02:22.032 --> 00:02:22.952 Michael Heinz BASF Audio: Thank you for having me. 00:02:23.032 --> 00:02:23.642 Victoria: Absolutely. 00:02:23.822 --> 00:02:26.752 Well, let's start talking about Responsible Care since that's a 00:02:26.752 --> 00:02:28.382 center point of this conference. 00:02:28.712 --> 00:02:31.162 What's the role of Responsible Care at BASF? 00:02:32.342 --> 00:02:34.642 Michael Heinz BASF Audio: Well Responsible Care is a volunteer program 00:02:34.642 --> 00:02:40.062 that has been around for over 30 years, and BASF has implemented it in 2007, 00:02:40.512 --> 00:02:44.467 and it's basically a set of rules and procedures to make sure that we 00:02:44.467 --> 00:02:49.527 continuously advance in, uh, in safety environment and in also health aspects. 00:02:49.557 --> 00:02:52.717 And we apply that in all of our subsidiaries around the 00:02:52.717 --> 00:02:56.417 globe and in all the companies where we have a majority stake. 00:02:56.657 --> 00:02:56.997 Victoria: Awesome. 00:02:57.007 --> 00:02:59.917 So you've actually taken it and applied it elsewhere, even 00:02:59.917 --> 00:03:00.847 though it's outside of the U. 00:03:00.847 --> 00:03:01.197 S. 00:03:01.427 --> 00:03:01.977 Michael Heinz BASF Audio: Definitely. 00:03:01.977 --> 00:03:02.937 It's a global program. 00:03:02.947 --> 00:03:03.207 Yeah. 00:03:03.482 --> 00:03:03.882 Victoria: It is. 00:03:03.922 --> 00:03:05.972 And it's, of course, it's great principles as well. 00:03:06.482 --> 00:03:09.562 Um, so when we think about sustainability, you're chair of the 00:03:09.572 --> 00:03:14.842 Sustainability Committee for ACC, and I guess the question I have is 00:03:14.842 --> 00:03:16.762 really, how do you reach alignment? 00:03:16.772 --> 00:03:22.572 There's such a diversity of companies, of leaders, of interests, 00:03:23.092 --> 00:03:24.432 that it's challenging, right? 00:03:24.432 --> 00:03:27.682 We know it's challenging when we're inside the same company, but much less 00:03:27.682 --> 00:03:31.132 when we're across companies, it can be challenging to reach alignment. 00:03:31.432 --> 00:03:32.632 What do you find to be critical? 00:03:33.132 --> 00:03:35.092 Michael Heinz BASF Audio: Well, on one hand, yes, I mean, sometimes it's 00:03:35.132 --> 00:03:38.742 challenging to find alignment, but we're all working for the same industry. 00:03:38.852 --> 00:03:42.702 And as we work for the same industry, we also also face the same challenges, 00:03:43.032 --> 00:03:46.062 but we also have the same opportunities because when you look at the chemical 00:03:46.122 --> 00:03:51.002 industry, I mean, chemicals, that is basically the mother of all industries. 00:03:51.062 --> 00:03:55.252 And, uh, 96 percent of all the products and goods that are being 00:03:55.252 --> 00:03:57.332 produced are enabled by chemistry. 00:03:57.592 --> 00:04:01.622 And that's what we have to focus on as a group in ACC by saying, 00:04:01.842 --> 00:04:04.042 what can be our contribution. 00:04:04.042 --> 00:04:07.962 What are some of the innovations that we can move forward in order to solve 00:04:08.222 --> 00:04:12.162 some of the challenges that we face as an industry and also as a society? 00:04:12.552 --> 00:04:13.562 Victoria: So what are the priorities? 00:04:13.562 --> 00:04:17.022 What are the most important things that the committee is working on today? 00:04:17.072 --> 00:04:18.732 Michael Heinz BASF Audio: I think there are two, two things. 00:04:18.772 --> 00:04:21.392 I mean, at least from a sustainability aspect, one is 00:04:23.557 --> 00:04:27.987 circularity and then the other thing is reducing, reducing greenhouse gases. 00:04:27.997 --> 00:04:32.197 So it's really how can we make some of our products slightly different? 00:04:32.427 --> 00:04:35.347 How can we use some of our products different? 00:04:35.367 --> 00:04:37.347 Can we keep them longer in the loop? 00:04:37.387 --> 00:04:40.717 And then if they're at the end of their life cycle, how can we 00:04:40.717 --> 00:04:42.107 better recycle those products? 00:04:42.447 --> 00:04:42.737 Victoria: Yeah. 00:04:42.937 --> 00:04:46.287 So it's the, the full life cycle is really critical there. 00:04:46.647 --> 00:04:49.387 Um, turning to BASF, right? 00:04:49.387 --> 00:04:54.367 So when you think about the company, what are BASF's priorities as it relates 00:04:54.367 --> 00:04:58.687 to sustainability and even as it really interfaces with the business, right? 00:04:58.687 --> 00:05:01.777 Because it's obviously a key element of business. 00:05:02.097 --> 00:05:05.215 Michael Heinz BASF Audio: I mean, first, uh, our key priority is embedded in our 00:05:05.215 --> 00:05:09.032 purpose and our purpose is we create chemistry for a sustainable future. 00:05:09.032 --> 00:05:13.282 And we want to be the preferred supplier off the chemical 00:05:13.282 --> 00:05:20.302 industry in order to enable the transformation of our customers. 00:05:20.622 --> 00:05:22.852 And, uh, and that's what we are driven by. 00:05:22.852 --> 00:05:28.142 And that's, uh, that's where our 112, 000 people folks around the 00:05:28.142 --> 00:05:29.622 globe are really passionate about. 00:05:29.692 --> 00:05:30.002 Victoria: Yeah. 00:05:30.342 --> 00:05:34.902 And how are you, uh, how is BASF adapting given the economic challenges, 00:05:34.902 --> 00:05:39.332 the supply chain challenges, the energy challenges that we've seen? 00:05:39.642 --> 00:05:41.292 Really, in the last couple of years? 00:05:42.182 --> 00:05:44.572 Michael Heinz BASF Audio: I mean, on the obviously, I mean, we are very 00:05:44.642 --> 00:05:46.472 energy intensive type of industry. 00:05:46.482 --> 00:05:52.482 And just to give you a number, I mean, BASF energy demand is 00:05:52.522 --> 00:05:55.862 as high as the country of Greece or the country of Portugal. 00:05:55.982 --> 00:06:02.227 So energy for us is, is really I mean, something that is very, very important. 00:06:02.237 --> 00:06:06.337 So, and what we have done is we are shifting more and more to green energy. 00:06:06.747 --> 00:06:13.107 Um, and so 60 percent of our energy supply by 2030 will come from green energy. 00:06:13.107 --> 00:06:17.147 And what we have done, um, primarily in Europe, because there it was possible 00:06:17.157 --> 00:06:22.667 was to get access to an equity stakes into wind parks, I mean, to produce 00:06:22.667 --> 00:06:27.337 our own green energy, but we also have it in our new Verbund site in, 00:06:27.337 --> 00:06:31.917 in Zhanjiang in the southern part of China, where it will be enabled by 00:06:31.917 --> 00:06:34.597 wind power and also by solar power. 00:06:34.837 --> 00:06:39.317 And also the United States, we have a lot of, uh, uh, agreements with, uh, 00:06:39.367 --> 00:06:44.287 companies, solar companies, and also wind companies for PPAs or virtual PPAs. 00:06:44.617 --> 00:06:44.917 Victoria: Yeah. 00:06:44.987 --> 00:06:45.467 That makes sense. 00:06:45.487 --> 00:06:49.537 And I saw that recent announcements about the equity acquirement of, uh, 00:06:49.547 --> 00:06:50.837 wind farms, which is really exciting. 00:06:50.837 --> 00:06:51.877 Michael Heinz BASF Audio: I would have never thought that we would, 00:06:51.897 --> 00:06:53.797 become owner of a wind park for sure. 00:06:54.377 --> 00:06:54.617 Victoria: No. 00:06:54.817 --> 00:06:58.267 In fact, you know, often I think, uh, as business leaders and 00:06:58.267 --> 00:07:01.777 strategists, we think, okay, what's really our core capability, right? 00:07:01.777 --> 00:07:04.767 And you focus in on your core capability, which you would not 00:07:04.767 --> 00:07:07.577 assume to be wind other than , you know, being good talkers... 00:07:07.577 --> 00:07:09.977 Michael Heinz BASF Audio: True but one of our core capabilities, believe it 00:07:09.977 --> 00:07:14.977 or not, is actually producing energy because, uh, we were producing energy for 00:07:14.977 --> 00:07:16.767 the last, uh, let's say a hundred years. 00:07:16.767 --> 00:07:19.812 So 50% of the energy requirement that I spoke about. 00:07:19.932 --> 00:07:21.572 We always produced ourselves. 00:07:22.242 --> 00:07:24.332 And now we just produce it via a wind power. 00:07:24.372 --> 00:07:24.662 Victoria: Right. 00:07:24.682 --> 00:07:26.792 So it's a new version of a co gen unit. 00:07:27.442 --> 00:07:28.412 Michael Heinz BASF Audio: If you want so, yes. 00:07:29.242 --> 00:07:29.642 Victoria: Awesome. 00:07:30.052 --> 00:07:35.032 Um, so you know, when you think about the challenges of navigating across 00:07:35.052 --> 00:07:38.392 multiple landscapes, we've already touched on the fact that you're 00:07:38.642 --> 00:07:41.742 taking some slightly different energy approaches in the sense of equity 00:07:41.742 --> 00:07:43.672 ownership of energy in different regions. 00:07:43.992 --> 00:07:49.367 How do you think about leveraging sustainability and navigating just 00:07:49.377 --> 00:07:54.117 the different challenges, regulations, opportunities by region, because 00:07:54.117 --> 00:07:55.727 there's obviously differences. 00:07:56.547 --> 00:07:59.317 Michael Heinz BASF Audio: There are differences and, uh, some regions 00:07:59.327 --> 00:08:03.007 obviously have different type of timelines or different type of priorities, but 00:08:03.037 --> 00:08:07.307 as we operate in all regions around the globe, we just have to adhere 00:08:07.307 --> 00:08:11.907 to whatever the regulation is and ultimately I think down the road some 00:08:11.907 --> 00:08:14.267 of those regulations will converge. 00:08:14.587 --> 00:08:20.097 So which then just means I mean our goal is we set out certain goals and 00:08:20.127 --> 00:08:24.347 uh, and when it comes for example to CO2 reduction and there we don't have 00:08:24.347 --> 00:08:25.687 regional goals we have a global goal. 00:08:26.397 --> 00:08:30.477 And yes there are certain regulatory requirements which are different but 00:08:30.477 --> 00:08:37.217 we are using also ACC for example in order to lobby A price on carbon and 00:08:37.217 --> 00:08:40.397 that is something that we, for example, advocate for on a, on a global basis. 00:08:40.487 --> 00:08:40.867 Victoria: Yeah. 00:08:41.197 --> 00:08:41.787 And absolutely. 00:08:41.797 --> 00:08:43.127 And I think, uh, I think that's right. 00:08:43.157 --> 00:08:44.137 You've talked about it. 00:08:44.177 --> 00:08:45.397 ACC talks about it. 00:08:45.797 --> 00:08:50.107 I hear people across the industry talking about the need for alignment. 00:08:50.302 --> 00:08:55.742 of some of these regulations, um, and it also being, you know, science based 00:08:55.742 --> 00:09:00.562 and being really logical and making sure that we're not being, uh, confined, 00:09:00.892 --> 00:09:04.792 um, by what makes sense today, but maybe won't make sense in the future. 00:09:05.022 --> 00:09:06.512 Michael Heinz BASF Audio: And it's for sure a journey. 00:09:06.522 --> 00:09:08.567 It's something that you have to keep going. 00:09:08.707 --> 00:09:09.317 Keep doing. 00:09:09.357 --> 00:09:10.427 I mean, for a long, long time. 00:09:10.457 --> 00:09:10.797 Victoria: Yeah. 00:09:10.997 --> 00:09:11.357 Awesome. 00:09:11.537 --> 00:09:14.457 Well, Mike, let's, let's turn and talk about leadership a little bit. 00:09:14.457 --> 00:09:19.197 So you have obviously led a really great and successful career in the 00:09:19.197 --> 00:09:26.077 industry and at BASF moved into a senior level from quite an early, uh, age or 00:09:26.077 --> 00:09:29.907 time in your career, um, have been on the board of directors for 13 years. 00:09:30.557 --> 00:09:35.772 To what do you attribute that success and being able to take on 00:09:35.772 --> 00:09:39.652 those really big responsibilities from an early part of your career. 00:09:40.452 --> 00:09:42.832 Michael Heinz BASF Audio: I think I always had a couple of, 00:09:42.832 --> 00:09:44.502 uh, let's say models in my life. 00:09:44.532 --> 00:09:47.482 I was always very ambitious that comes from sport because I was 00:09:47.492 --> 00:09:48.942 playing semi professional sport. 00:09:49.472 --> 00:09:53.952 Um, but I had a lot of ambitions without being too ambitious and that 00:09:53.952 --> 00:09:57.922 might sound a little strange to you, but what it means was that I was always 00:09:57.952 --> 00:10:00.942 giving 125 percent at what I was doing. 00:10:01.772 --> 00:10:05.582 And I was always curious and I was always trying to give it my best. 00:10:05.982 --> 00:10:10.702 And I was not necessarily looking for my next job, but just putting a lot of 00:10:10.702 --> 00:10:13.222 rubber on the road and giving it 125%. 00:10:13.962 --> 00:10:19.632 And I don't really mean working 12 hours instead of 10 or, uh, yeah, it, it, it 00:10:19.632 --> 00:10:25.082 just means to, I mean, When the coach says you really got to accelerate you 00:10:25.082 --> 00:10:28.782 accelerate and when the coach says you should rest you also take some rest But 00:10:28.792 --> 00:10:34.107 you really you really try to give it your best at what you do And that, I think, 00:10:34.107 --> 00:10:39.367 has caused others to see something in me and provide me with opportunities 00:10:39.367 --> 00:10:44.597 in the company, um, and jobs that were always one size too large for me. 00:10:45.077 --> 00:10:49.027 And then, uh, and then I started to grow into it, um, because you have to 00:10:49.027 --> 00:10:53.657 realize that once someone gives you a job where they tell you this, you can do 00:10:53.657 --> 00:10:55.227 easily, you're at the end of your career. 00:10:56.422 --> 00:10:56.712 Oh 00:10:58.352 --> 00:10:59.382 Victoria: That is really true. 00:10:59.682 --> 00:11:01.902 Uh, well, I I may just leave it at that. 00:11:02.112 --> 00:11:06.032 Um, it's a good closing remark Well, Mike, thank you so much for joining me today. 00:11:06.032 --> 00:11:06.952 I really appreciate your time 00:11:06.952 --> 00:11:07.162 Thanks for 00:11:07.162 --> 00:11:07.612 Michael Heinz BASF Audio: having me. 00:11:07.672 --> 00:11:10.762 Victoria: Thank you for joining us on today's episode of The Chemical Show. 00:11:11.072 --> 00:11:13.962 Keep listening, keep following, keep sharing, and we'll 00:11:13.962 --> 00:11:15.852 talk with you again soon. 00:11:19.463 --> 00:11:21.243 voiceover: We've come to the end of today's podcast. 00:11:21.653 --> 00:11:24.203 We hope you enjoyed your time with us and want to learn more. 00:11:24.612 --> 00:11:26.872 Simply visit TheChemicalShow. 00:11:26.882 --> 00:11:29.632 com for additional information and helpful resources. 00:11:30.322 --> 00:11:34.372 Join us again next time here on The Chemical Show with Victoria 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