Welcome to the ordinary General Meeting of BASF SE in the year 2023 here in Mannheim, Rosengarten. As Chair of the Supervisory Board, I will take the Chair of the AGM. According to Section 18, Figure 1, I take the Chair. I would like to welcome you, ladies and gentlemen, the ladies and gentlemen shareholders, the shareholder proxies, the representatives of the press, and also those people who have dialed in live via the Internet. I would also like to welcome those shareholders that follow this AGM online live via the online service. After the last three years, where we held our AGMs virtually due to the pandemic, we are now very pleased that this year we are able to welcome you in attendance here at Rosengarten, Mannheim.
The Board of Executive Directors and Supervisory Board have decided to turn back to a face-to-face format, even if the legal regulations would allow to have this AGM also in a virtual form. As you all know, the main part of DAX companies this year will also meet virtually. We promised you last year that we will return to Rosengarten as soon as possible, if and when the legal preconditions are present. Also independent from that, we are convinced that we want to communicate with you, the shareholders, directly. You will have the opportunity to meet your Supervisory Board and your Board of Executive Directors here at Rosengarten.
We believe that this is the best form of communication with you. I'm also pleased that you obviously feel the same as we do at the Supervisory Board and Board of Executive Directors. What's new is that we have an online transfer to the entire AGM for registered shareholders. You know that in the past, there was a public and non-public part. Now you can dial in from home once you have registered beforehand. That brings me to the people sitting up here on stage today. From the Supervisory Board, we have all the members present, with one exception. Dame Alison Carnwath cannot be here today. She could not travel to Mannheim.
The Board of Executive Directors is here in full attendance. I would like to welcome Dr. Stephan Kothrade, sitting at my right, who since 1st of March 2023, is member of the Board of Executive Directors. He follows Saori Dubourg, who left the company by mutual agreement. You also see in the first row of the audience, Dr. Dirk Elvermann. Do you see him? Here he is, who is the future CFO of BASF. He will succeed Dr. Engel, who is going to leave today after 35 years at BASF, 15 years in the Board of Executive Directors, and 12 years as the CFO of BASF SE.
Well, yesterday evening, we met with Mr. Engel yesterday, and the Supervisory Board and the Board of Executive Directors. Today, Hans, thank you very, very much for everything that you did for BASF. Thank you for the wonderful cooperation. You gained great respect in the company and also outside of the company. We will certainly miss you. We're very pleased that with Dirk Elvermann and Stephan Kothrade, we have two extremely suitable successor. Both have been with BASF for 20 years now in several functions in Germany and other countries. They not only are experts, but also personally, they are enriching our board and very good members of the Board of Executive Directors.
Also, as the Chairman of the Supervisory Board, I'm looking forward to the future cooperation. Looking at the stage, you will see that the Board of Executive Directors, the leaving of Saori Dubourg, only has one lady in its rows. Mrs. Maas-Brunner is responsible for research, but also for the big European sites, and last but not least, also for Ludwigshafen, and has been member of the Board of Executive Directors for two years now. Of course, BASF meets the women's quota. However, this is not rating the promoting of young talents. Diversity is a precondition for an excellent team of the Board of Executive Directors.
Apart from the gender, of course, a high degree of internationality of the members is important. This is why international experience is indispensable, and it would be even better if we had a member with a non-German passport, and we are doing our best to do so in the future. The Board of Executive Directors has sophisticated aims for the development and promotion of women. Until 2030, the share of female leaders in the executive staff will raise from 27.2% to 30%. The Supervisory Board and also the Personnel Committee are on a regular basis looking at candidates for the Board of Executive Directors. I am quite optimistic that we will see further progress.
Let me also stress that last but not least at BASF, it is always the qualification of the candidates that's most important. This too is what we owe you as our shareholders. Now let me talk about the formal instructions for today's AGM. This is quite long but necessary. The calling of this year's AGM was published in the Federal Gazette dated 16 March 2023. A specimen copy for the calling is taken with a notarial record, and I do state that the AGM was called duly. Before the proceedings of our agenda, let me just ask you to rise from your seats for a minute.
As every year, we commemorate all the employees and pensioners who have deceased since the last AGM. Thank you very much. Until the end of the voting, you can cast a vote and instructions to the company proxies via the online service, also today. Granting an issue in modifying or revoking proxies or instruction to proxies are also possible at the front office. Also at the special desk in the lobby, this is also possible for the granting of or revoking of proxies to third parties. Information on casting your vote can also be found in the calling for today's AGM. The voting proxies, according to your instructions, will take the votes on the items on the agenda.
The duly introduced written postal votes will also be considered before the electronic vote. Your entrance and admission card has the necessary statutory attendance list and for the vote. This information is going to be allocated to the number of your individual AGM card. If you have several entrance card, admission cards, you need one AGM card for every vote. We are obliged to correctly have the attendance list registered. Please help us with that. If you leave the meeting before its end, please hand in your AGM card to the members of the service desk at the lobby, so we can adjust the attendance list.
Apart from the deregistrations, you can also grant proxy or authorization. Every AGM card contains two possibilities to grant proxy. If you don't grant proxy, your votes cannot be considered during the vote. On the proxy and on the entire voting procedure, please look at the explanations in the AGM card that you received. The notary, Mrs. Seeler, will do the notarization according to Stock Corporation Act. She sits at the right side of the audience to your right, and there is her place is signposted.
Now to those of you who want to request the floor, we would request all the ladies and gentlemen, shareholders, and proxies of shareholders who want to take the floor to register that at one of the two registration desks by presenting your AGM card. Please register as soon as possible, now, if possible, so that we can see how many speakers want to take the floor. We are looking forward to answering your questions by the members of the Supervisory Board and members of the Board of Executive Directors. Registered shareholders this year could register their texts until 25th of April, 2023 via the online service.
These contributions were made available to all shareholders in the online service and can be viewed until the end of this AGM. The AGM this year will be fully broadcast in the online service for shareholders. I already mentioned that at the beginning. We will ask you not to use audio or video recording, particularly not with your smartphones. This is against the personal rights of every individual. This, just to avoid interferences, we ask you to switch off your smartphones during the entire AGM or mute them. If you didn't do that, please check your telephone and do it now. Thank you very much.
Also this year, the attendance list will be made available electronically. Two desks with monitors are available for that next to the desk of the notary in this room. Ladies and gentlemen, next to the main room, you have the possibility to follow the AGM in the Musensaal and the rooms Gustav Mahler and Alban Berg on Level 2, as well as adjacent rooms via video and audio. This year also, you can use several rooms in the Dorint Hotel, which is next to Rosengarten, and you can reach the Dorint Hotel via the pedestrian bridge on Level 1. Please use these rooms if you wish.
These are the preliminaries and the necessary formal instructions for today's AGM. Let me talk about the management report, and I would like to give the floor to Martin Brudermüller. Martin, we are looking forward to your report.
Chemie macht schon sehr viel unseres Lebens aus und ist auch ein extrem wichtiger Bestandteil unseres Lebens, auch unserer Lebensqualität. Das ist den Leuten gar nicht so bewusst.
Die Chemiebranche hat genau die Herausforderung, dass es nicht als nachhaltig gesehen wird, obwohl viele der Produkte eigentlich zur Nachhaltigkeit sehr viel beitragen.
Wir haben kohlenstoffhaltige Rohstoffe in sehr weiten Teilen. Wir sind energieintensiv.
Das große Ziel von BASF ist, dass wir bis 2050 eine klimaneutrale Firma sind.
Die BASF hat in der Vergangenheit schon sehr häufig bewiesen, dass sie solche Transformationen kann.
In jedem Veränderungsprozess gibt es treibende Kräfte und Skepsis.
Die BASF muss sich auch ändern und das tun wir auch und da sind wir wirklich auf einem guten Weg.
Wir müssen ganze Chemieprozesse, etablierte Verfahren umstellen auf CO2-Neutralität und das sind wahnsinnig große Herausforderungen.
Natürlich ist das nicht einfach und das merkt jeder.
Grad am Anfang wird man viel mit Rückschlägen konfrontiert. Das Wichtigste ist, sich aber nicht entmutigen zu lassen.
BASF hat einen wahnsinnig großen Wissensschatz in der Firma. Es gibt für wahnsinnig viele Themen Experten.
Ich bin überzeugt davon, dass die Kollegen Pioniere sind. Wir machen Dinge in der BASF, die niemand vorher gemacht hat.
Das e-furnace-Projekt hat enormes Potenzial, die CO₂-Emissionen zu reduzieren. Wir reden hier über circa 90%.
Die BASF arbeitet auch aktiv an Recyclingtechnologien und Innovationen.
Martin und ich, wir versuchen zu zeigen, dass Energietransformation möglich ist.
Wir berechnen für alle Produkte der BASF die Product Carbon Footprints. Das bedeutet für etwa 45,000 Produkte.
Durch die Veränderung der BASF hin zu Klimaneutralität erhalten die Kunden den Mehrwert, dass sie selbst ihre Klimaneutralitätsziele erreichen können, durch uns als starken Partner an ihrer Seite.
BASF in der aktuellen Transformation ist auf einem guten Weg. Der Weg ist aber noch lang.
Im Team ist es auf jeden Fall wichtig, dass man einfach die Aufgabe, vor der man steht, zusammen anpackt. Anders geht's nicht. Allein kann man nichts erreichen. Nur im Team kann man was erreichen.
Das ist extrem wichtig für uns alle, dass wir das ernst meinen und dass die BASF mit der ganzen Kraft und Schwungmasse, die sie hat, mit der ganzen Seriosität und auch Liebe fürs Detail an den Stellen, wo es notwendig ist, sich da ans Werk gemacht hat.
Es ist keine Option, es nicht zu schaffen. Wir müssen es schaffen und wir werden es schaffen.
Wenn wir es als BASF nicht schaffen, dann schafft es keiner.
Shareholders, ladies and gentlemen. Courageous and down-to-earth, a team that gets going and will never be on the wrong track, even though there is strong headwind. A team which is behind the change to climate neutrality. This is what we're about at BASF. With this, I would like to very warmly welcome you to our AGM in Mannheim on-site and also in front of the screens. A very warm welcome. We are very glad to see you. After three virtual AGMs, we are back at Rosengarten. We are very glad not only to talk in front of a camera, but directly to you, because we really appreciate exchange with you.
Ladies and gentlemen, you know me. You know that I openly address issues. Let me start by saying, well, stormy times for BASF. The chemical industry, specifically in Europe and Germany, is facing up to a lot of challenges. Unfortunately, we are familiar with the issues. A terrible war in the center of Europe and human suffering is enormous. The economic consequences of the Russian attack against Ukraine are enormous. Drastically increased energy and raw materials prices, high inflation and increasing interest rates, and connected with this, a demand of consumers, which is going down. We find ourselves in a difficult economic environment with a lot of geopolitical tensions, which means uncertainties in the markets.
In addition to this, we have global transformation towards the climate neutrality and circular economy, an enormous task for this century. The Green Deal of the E.U. is a special challenge. Nowhere else we have such an intensive, far-reaching, and limiting regulation as in Europe. As a globally leading chemical company, we cannot get away from this because a lot of these topics affect BASF as well. This is why the share price after the start of the war went down considerably. Yesterday, it was EUR 50.15, much too low, and this is really very unsatisfying.
I guess that you are concerned about BASF, but there is no reason for this, because we consistently and decisively tackle challenges as we always do at BASF. It is not the first time for us. In the more than 158 years history of BASF, we have managed time and again to realign. Looking ahead, think of the change in the raw material space for us. From the coal in the 19th century as a starting material for paints, then mineral coal and oil and natural gas since the 1980s, up to renewable raw materials and energies for climate neutral future.
Shaping the change, this is part of BASF. This is why we will succeed again this time. Our task as a Board of Executive Directors is to keep the company on track in this difficult situation, and by focusing on short-term aspects, not to lose sight of the holistic view. Our priorities remain unchanged to make BASF climate neutral and grow profitably, and we do so full of passion. Part of our task as Board of Executive Directors is to take a clear stance to explain and not to get tired of working for BASF and defending BASF. This is dear to my heart, and this is what I've done.
For example, in spring last year, when there was a demand for first embargo against gas from Russia, it was important to introduce the view of the industry in this discussion and not to enter the embargo head over heels. Every single month, in addition, made it possible for us to make Germany more independent from Russian gas. Natural gas is our most important energy carrier, but also an important raw material for many products. At about 4% in 2021, we were the biggest industrial consumer in Germany, and this is the amount that the whole of Switzerland consumes. When gas from Russia, so to say, overnight, had to be replaced by other sources, the energy markets were completely upside down.
Energy prices reached levels we had never seen before. For BASF, this meant enormous additional costs, about EUR 3.2 billion globally in 2022. Our biggest concern was that especially the Ludwigshafen site wouldn't be supplied with enough gas. There still can be gas scarcity, especially in the next winter. In April of 2022, at less than 50% of gas supplies compared to 2021, we would have been forced to shut down the whole site. This is why we intensely worked on making BASF more independent of natural gas. Our teams looked for solutions around the clock, and this commitment paid off.
Today, we can even operate our biggest site if we were only to receive 30% of the gas supplies. Starting in fall, in an extreme situation, we can do with only around 10%. We can do so by not operating plants with a lot of gas consumption at full capacity utilization and a partial change of our power plants to use oil. Complete shutdown of the site is no longer a problem for us. This, again, is an enormous achievement of the BASF team. Another topic that we consistently look at is our share in Wintershall Dea. Exiting the oil and gas business was something we decided about before the war started, and we will stick to this.
Given the attack against Ukraine on part of Russia, the basic conditions have changed completely. Via Wintershall Dea, we are part of a joint venture in Russia producing oil and gas, but now the Russian government expropriated Wintershall Dea in Russia. Last year, we had to go through an impairment for our holding in Wintershall Dea to the tune of EUR 6.5 billion. For the BASF Group, this meant negative earnings after taxes, and of course, this hit us very painfully, but it opens up the path towards the future. We work full steam to find variants here for exiting.
Going public of Wintershall Dea will remain our preferred alternative, but we can also think of selling it to investors. This cannot be done overnight. We need a lot of approvals from authorities and joint venture partners. However, we are very confident that we'll be able to do so in the foreseeable future. Ladies and gentlemen. The year 2022 was a year with light and shadow for BASF. Now let's take a look at the business figures. We proved to be resilient in this difficult environment. We had a very strong start with the historically best first semester ever, followed by the weakest operating second semester since 2008.
Sales increased by 11% to EUR 87.3 billion. Our EBIT before special items amounted to EUR 6.9 billion. This was below the previous year's level, but within the range we had forecast. Businesses in the segments Agricultural Solutions and Nutrition & Care were running extremely well. EBIT before special items was clearly increased. In case of Chemicals and Materials, we saw a clear decline in earnings. This is something we had expected. In case of Surface Technologies, earnings increased considerably. In case of Industrial Solutions, it slightly increased. In case of both segments, we had expected a slight deterioration of earnings. Our available funds, free cash flow, amounted to more than EUR 3.3 billion.
In addition to this, we earned a premium on our cost of capital. What do these business figures mean for your dividend? Board of Executive Directors and Supervisory Board propose a dividend of EUR 3.40 per share for the 2022 business year. This is a high return of 7.3% based on the share price of EUR 46.39 at the end of the year. The payout totals EUR 3 billion. This amount is more than covered by our free cash flow. Looking at the payout, this is something we can support despite the negative earnings after taxes. This was a consequence of impairment which did not have any effect on the cash situation.
Let's take a look at the most important parameters of Q1 2023. We generated sales of around EUR 20 billion and EBIT before special items of EUR 1.9 billion. These figures, as expected, are below the strong sales and earnings figures of the previous year's quarter. Dear shareholders, we are faced with a strong headwind at the moment, we live with realities that we have to face up to today. One of these realities is the development of the global chemical market. In 2000, the regions Europe, North and South America, as well as Asia Pacific, each contributed 1/3 to the global chemical market.
Up until 2030, the shares of Europe will go down to 17% and of North and South America to 13%. Asia Pacific will then represent around 70% of the global chemical market. Western markets hardly see any growth any longer. On the other hand, in Asia, we see a growth rate of probably 3.7% on average annually. If we compare these numbers with the regional footprint of BASF, the picture is very clear. Against the background of these market expectations, we have to expand our business in Asia Pacific. We need a more balanced regional position. This is a painful reality, specifically for Europe. I'd like to explain to you today how we are going to do this.
We defined five priorities which are an integral part of our strategy. Based on these, we pave the way for profitable and sustainable growth. Our top priority is that we strengthen our competitiveness and our resilience in Europe and Germany. Our home market fills us with more and more concern. Profitability is by far not at the level that we've seen before. Last year in Germany, we had a negative operating result amounting to EUR 130 million. Of course, gas prices in Europe had an influencing factor here as well, but that's not only it. Europe's competitiveness has been suffering for many years because of the weak market growth.
In addition to this, we have a regulation that is inundating us. Companies are suffocated by more and more red tape, and the situation is getting worse. In addition to this, costs are increasing as well. In other regions of the world, the government strengthens industry. With the Inflation Reduction Act, the U.S. came up with a very pragmatic initiative. It combines economic growth with initiatives for green transformation. CO2-neutral production is turned into a business model that helps you to make money. This should be a role model for Europe. Europe needs more pragmatism as well to make sure that we don't fall by the wayside as a region.
We are concerned about the direction Europe is taking. The E.U. Commission focuses on the effect of detailed and expansive regulation. Around the European Green Deal, we already have 14,000 pages which are relevant for the chemical industry. I want to be very clear, we support the goals of the Green Deal, but the way it is being implemented at the moment, it does not make international competitiveness possible, and this will not help anybody at the end of the day. Our competitiveness in Europe is challenged, and this is why we're trying to take corrective action as quickly as possible and as decisively as possible.
We have two measure packages. First of all, we streamline our structures outside of production, focusing on Europe and Germany. Starting at the end of 2024, we thus want to save more than EUR 500 million every year. Secondly, we adjust our production, specifically in Ludwigshafen. We shut down some plants for basic chemicals which are extremely energy-intensive. One of them is one of our ammonia plants. In case of high energy costs in the long run in Germany, such plants are no longer competitive, also due to the fact that we have seen over capacities being developed in other regions at lower costs.
These are painful steps, especially for the teams who have been operating these plants with a lot of passion over many years. The shutdowns also mean that we cut jobs, but we do it in a way we have always done at BASF, socially compatible in a responsible manner and in the direct exchange with the worker representatives. Many employees affected with a lot of experience are the ones we want to retain in the company. We need these qualified people because many will retire at BASF in the years to come. Dear shareholders, based on these measures, our biggest site of Ludwigshafen in its 159th year will become fit for the future.
Our Verbund is and remains resilient, and this is why we continue to invest in the updating of our plants and the transformation of the Verbund. In Ludwigshafen alone, we earmarked around EUR 2 billion every year in the long run. Our vision for Ludwigshafen is crystal clear. Ludwigshafen is supposed to be the role model site of climate-neutral chemical production in Europe. Here we produce the broadest portfolio of products. The big Verbund opens up a lot of opportunities to test new technologies and integrate them into existing structures. Being close to research is a decisive advantage here. This is why we take many first steps for the transformation of our Verbund in Ludwigshafen.
As a global company, we can balance between weaknesses in one region and strong contributions in others for our good regional portfolios. This brings me to the second priority. I already presented the facts. The growth market for the chemical industry is Asia, specifically China. China represents around 50% of global sales in the chemical industry. In case of BASF, China only represents below 15% of total sales. We want to continue to grow enormously in China with a lot of profitability. This is why we invest there, and we expand our Verbund site in Nanjing, plus we build a new Verbund site in Zhanjiang in southern China. The investment is around EUR 10 billion by 2030.
From the very beginning, we wanted to use this site as a trailblazer for sustainability. Our goal, 100% green power from day one. This makes us the trailblazers in the chemical industry globally. This investment is important for BASF. One pillar in growth markets compensates a lack of growth in Europe. With this, we fund our investments for climate neutral future all over the world. People keep asking us, "Is BASF becoming too much dependent on China? Are we neglecting geopolitical risks?" I do understand that you think about this. After intensive and responsible consideration, our answer here is no.
We analyze the risks and opportunities of our investment in China in great depth, of course, also in exchange with external experts. As a result, we assess the opportunities for BASF to be higher than the risks. Looking at our commitment in China, we act on the basis of global guidelines. That is respecting human rights is part and parcel of our company philosophy. This is our compass for everything we do, including in China. Does this mean that BASF will withdraw from Europe? Definitely not. Europe is the cradle of BASF, and our basic principle is we produce where the customers are.
We produce in China for China, and we have important customers in all other markets around the world. This is why we have to be and want to be strong in all important markets. At our Geismar site in the U.S., we are expanding our MDI capacities for $1 billion. MDI is important precursor for foams, plastics, and coatings. We see a lot of potential for this in North America. This has been our biggest investment in North America so far. Some weeks ago, I visited the site. The know-how and the enormous motivation of the teams was impressive. This shows our strength as a global company.
At many other sites of the world, we are driving other investment projects. Ladies and gentlemen, if you want to grow in the long run, you need the right products, and this brings me to priority number three. We drive innovation for a sustainable future. With around EUR 2.3 billion R&D costs, we are the biggest chemical company active in research in the world. I'm always excited how minute molecules help to manage enormous tasks, be it e-mobility, modern wind farms, or solar roofs, or feeding the world. All this takes our research and our innovation. In all businesses, we keep developing our product portfolio with our customers in order to reach sustainability. This includes new ingredients for detergents.
They are good for your clothing, and if you use low temperatures when you clean your clothes, they will be clean. This is two ways to do something for sustainability. You can wear your clothes longer, and you use less energy when you use the washing machine. We are also developing new business. Here we have great plans for cathode materials. This material is part of batteries for e-mobility. It will be decisive how safe, how far, and at what price you can drive electrically. Batteries are small chemical reactors. No electric car will work without them, and the market for battery materials is the globally biggest growth market in chemistry.
We are one of the few global producers for battery materials and sites in Europe, the U.S., and Asia, and we're expanding this position. This takes experts, and we are experts. We are not only leading when it comes to new high nickel content cathode materials, but we also invest in process research. We also invest the recycling. We also further develop the recycling of battery materials. Getting back the expensive metals such as lithium, nickel, and cobalt is decisive when it comes to the economic feasibility of the business at the end of the day.
The first recycling plant is being built as we speak at our Schwarzheide site, and this is where our first own plant for cathode materials in Europe will go on stream. The demand in Europe is enormous, but supplies are limited. We make sure that we don't use too many resources, and we close the cycle for sustainable mobility. At BASF, we thus link growth with climate protection at our customer site. We of course understand that the chemical industry causes a lot of CO2 emissions and consumes an enormous amount of fossil raw materials. This is why we take it a step further.
We are trailblazers of a climate-neutral production. That's our priority number four. We have ambitious goals. Up until 2050, we want to become climate neutral globally speaking. We want to strengthen the circular economy, and we want to change our raw materials basis from fossil to renewable materials. For a change towards climate neutrality, we must not lose any time. This really is dear to my heart. I want us to make a contribution to leave a world worth living in to the following generations. I'm very glad and proud that the BASF team here fully supports this. Our mission when it comes to sustainability drives the teams every day. They have great plans and ideas.
Take our researchers. They work on using microorganisms and enzymes to produce our products. These are processes of white biotechnology. They do not need a lot of energy and raw materials, and very often, they are based on renewable raw materials. This way, we reduce the CO2 footprint of our products. The successful change towards a climate-neutral chemical production takes a whole range of processes and new technologies like these. This is why we are driving a lot of pilot projects. One of them is the world's first electrically fired steam cracker furnace. Here you see pictures of the groundbreaking ceremony in September of last year in Ludwigshafen, a historic moment for us.
Why are we investing in this technology? This way, we can almost completely avoid the high CO2 emissions of our steam crackers. The steam crackers are the heart of our chemical production in the Verbund at the beginning of the value chain and as a starting point for thousands of our products. So far, we've been firing them with natural gas. Now we want to do so with our new electrical firing concept with green power. This is a great example to show how green transformation can succeed, but it also entails a lot of technological challenges. This is why we do so together with SABIC and Linde, two great partners.
Together, we are a strong team with the intention to drive innovation for a climate neutral future. Politicians support us as well. We are very glad that the Federal Ministry for Economic Affairs and Climate Action is supporting our project. Ladies and gentlemen, this is what the future of the chemical industry looks like. I am convinced that we need to do something against climate change, and we at BASF are courageous enough to do so. We leave trodden paths, and we open up new opportunities. Not all of the ideas will prevail, but we have to try new things to make sure that a climate neutral future will turn into reality.
Courage has to pay off. It would be an illusion to think that the decarbonization of our society works without additional costs. If this were the case, we would already be CO2 neutral. The required investments in plants and technologies also have to make a profit, otherwise they won't become reality. Our social ambitions will then remain just a dream. Let me be quite frank. We're talking about enormous investments. Today, without a true business model, we are not making money yet, but still we are going for it because those are the technologies for the future of the chemical industry.
We have to start driving them today to make sure that we can upscale at a later point in time. We are convinced there will be a profitable market for all these technologies in future. Almost all of our new technologies have one thing in common. They require a lot of power from renewable sources. This is why we developed a strategy to get hold of green power. We sign long-term contracts for green power, and as an industrial partner, we are part of projects, including the offshore wind farm Hollandse Kust Zuid by Vattenfall. It's an impressive project.
With 140 turbines at the Dutch North Sea coast, it will be the, at the moment, biggest wind farm in the world without any subsidies. Construction work is approaching its end, and the wind across the North Sea is also blowing for BASF now because our Antwerp site and other sites as well are already supplied with offshore wind power. We do not only invest in wind power, but in solar energy as well. In Schwarzheide, for example, a site which, since the reunification of Germany has gone through many changes and modernizations. A former coal mining area, today, the site of a solar park built with our participation.
This is an example of the overall transformation of the region there. We are much greener when it comes to our energy supplies than you might think. More than 100 BASF sites all over the world are already supplied with no emission power, with water, solar, or wind energy. When it comes to changing our energy supplies, we want to make faster progress. The bitter reality is there are not enough wind and solar farms that we can get a share in. Especially in Germany, we do not have enough projects and not the required infrastructure. Based on the more and more ambitious goals, the expansion is taking place much too slowly.
One other reality is we depend on the expansion of the public infrastructure for power grids. Again, here we are not making progress fast enough. It's up to politicians to speed up here. It doesn't help when they announce more and more ambitious goals and don't supply in the end. What would help is an acceleration, as in the case of the new German LNG terminals. Dear shareholders, transformation and profitable growth are two things that go hand in glove at BASF, two sides of one coin. This brings me to the fifth priority. We are trailblazers for low CO2 and CO2-free products for our customers.
BASF is the biggest global chemical company, and we do not only want to be a big company and profitable, we also want to be leaders when it comes to climate neutrality. This can only be done with products with net zero CO2 emissions. These are the products our customers need in order to reduce their CO2 emissions. We are fully convinced that this is the future of the chemical industry. Our customers confirm this. They ask, "When will I get your product without CO2 footprint?" We calculate the CO2 footprint of all our 55,000 products we sell around the world. Some of them are supplied today with lower CO2 or net zero CO2 footprint.
We expect that by 2030, the market demand for CO2-free products will exceed the supplies. The winner will be the company that can offer enough of such products. This is what we as BASF would like to do. Especially in Europe, this means to grow faster than the market and win market share. What is decisive for the success is that we try to discuss with politicians the correct regulatory tools, and we agree on individual strategies in order to reduce emissions with customers and suppliers. Our teams are very committed and very creative to get the competitive edge for BASF here.
Now, let me explain this by using one example. Let's take this sneaker. Everybody has at least one pair of sneakers at home. This shoe includes our innovative material, Infinergy, a top performance product, plastic product of BASF because it dampens the sole of sneakers. At the beginning, this meant a CO2 footprint of about half a kilogram per sole. We were able to reduce the CO2 footprint by half. In future, it will go towards zero. How do we achieve this? We replace power generated by natural gas by green power. Instead of fossil raw materials, we use regenerative waste-based or recycled raw materials such as palm oil, business oil, or pyrolysis oil from plastic waste.
With the method of the mass balance, we then allocate certain volumes of CO2-reduced elements to our products, and we, thus, adjust the CO2 footprint in a customized way to the requirements of the customer. This is just the beginning of a new generation of products, and we have the innovative power to go for these. How fast development is going towards this direction depends on our customers, whether they are willing to pay for this. At the end of the day, it's up to you as consumers, ladies and gentlemen, because climate protection requires an economic basis, otherwise we will not succeed.
We are convinced that the future belongs to emission-free products, and BASF wants to be one of the leaders here. This way, we maintain our position as a globally leading company of the chemical industry. Ladies and gentlemen, our responsibility does not stop at the work fence. Entrepreneurial responsibility also means responsibility for society, and a company needs orientation to be responsible. This is our corporate purpose. We produce chemistry for a sustainable future, i.e., we are based on the triad of sustainability, the balance of economy, environment, and society. We use all our power to achieve a successful transformation. We are making good strides at BASF.
It's also about solid and promising compromise and agreements between society, politicians, and industry. We enter into dialogue to explain what will work, what doesn't work. As the current Cefic president, I do so. This is the European Association for the Chemical Industry. We met with political parties, trade unions, NGOs, and the E.U. Commission to agree on a roadmap regarding the Green Deal for the chemical industry. It was difficult, and the plan definitely is not perfect, but it gives us a guideline for our goal, that is a European chemical industry which is competitive and is by far ahead when it comes to the global race for innovative solutions.
Ladies and gentlemen, we are convinced global challenges can only be met if we work together. This is what we do, and this is what we fight for in an open, cooperative, and constructive manner. This brings me to the end of my speech. We all together work for the future of BASF. We invest in order to grow sustainably and profitably in growth markets, in emission-free technologies, and in a new generation of CO2-free products. We are trailblazers in our industry. This way, we'll be able to create value for you, dear shareholders, for the society, and for our environment.
The success of BASF, thus, is worked for by our employees. They are a strong, creative, and entrepreneurial team. I would like to thank them very much for the team effort, for their commitment, for the extra mile they go. Based on this team spirit, we want to tackle the task of the future. I trust them fully. Thank you very much to all of you. I would also like to thank today our CFO and Deputy Chairman of the Board of Executive Directors. After 35 years with BASF, Hans-Ulrich Engel will leave the Board of Executive Directors today. Hans, over the many years, you were a great and good colleague.
Companion and friend. As you say, you always looked at the reality the way it was and made the best of it for BASF. Thank you very, very much for this intense cooperation based on trust over these long years. All the best to you and your family. Dear shareholders, you saw it in the video before I started speaking to you. We at BASF, we are strong, highly motivated, and with both feet on the ground. We know what needs to be done when there is a problem. We will stick to this attitude and tackle it together, focusing on the future of BASF.
How we shape it in a successful way, this is what I explained to you today. We are glad that you accompany us on this way, and I thank you for your trust.
Dear Martin, Mr. Martin Brudermüller, I would like to warmly thank you for this detailed and committed report. Many of the topics that you have touched upon are going to remain with us during the general debate, I'm sure. Now let me point out to the representatives of the press that we are extremely grateful for your interest in our event. Please bear in mind that an AGM is not a public event, so please refrain from audio and video recording from this point onward. This holds, too, for all the participants in this room. Now let's move on to the agenda. I will have to read out quite a bit of text here.
The annual financial statements and the approved consolidated financial statements, as well as the management reports of BASF SE and the BASF Group for 2022, including the explanatory reports in line with sections 289 A and 315 A of the German Commercial Code, have been published together with additional documents in line with the statutory requirements and can be inspected there. The annual financial statements of the BASF SE, as well as the consolidated financial statements of the group, as well as the management reports of both BASF SE and the BASF Group, have been audited by the appointed auditor and have received the unqualified auditor's opinion.
The annual accounts and the consolidated annual financial statements have been approved by the Supervisory Board. The annual financial statements have been adopted. Now let me move on to the report of the Supervisory Board. You will find the detailed comprehensive report in our printed business report. We have a small number of copies in printing. It amounts to almost 300 pages. I will therefore keep it short here. As Mr. Martin Brudermüller pointed out, in the last year, BASF was faced with extraordinary and unexpected challenges, mainly due to Russia's attack on Ukraine.
The dislocations on the raw material and energy markets have fundamentally and permanently changed the framework conditions for the chemical industry and in particular BASF. Following a good start into the year, we saw a disappointing sales and earnings performance. Add to this the extraordinary burdens as a result of the revaluation of our shareholding in Wintershall Dea. Dr. Brudermüller has just pointed out the details. The work of the Supervisory Board has been strongly marked by these developments. The Supervisory Board has fulfilled its legal and statutory obligations with great diligence. It has received regular information by the Board of Executive Directors within and outside our regular meetings.
It has monitored the management's work and the strategic development of the company, as well as key individual measures. Five meetings were held during the 2022 fiscal year, during which all the members participated. In particular, the Supervisory Board has dealt intensely with the effects of the dislocations of the raw material and energy markets on the operational business and the short and long-term competitiveness of key businesses and sites, as well as their recoverability. The further development of BASF Group in view of increasing geopolitical risk was also at the center of its considerations.
Even outside our meetings, the CEO and myself regularly exchanged our opinions and views on the current development of the business situation and key business events. The Supervisory Board has considered the remuneration of the Board of Executive Directors during various meetings and has resolved on such remuneration. Dr. Martin Brudermüller's mandate has been extended by one year up until the end of the AGM of 2024, and Dr. Dirk Elvermann has been appointed successor to our CFO, Dr. Hans-Ulrich Engel. For the Supervisory Board, 2022 was a year of personnel change. Since the last AGM, it has five new members.
Since the last ordinary elections to the Supervisory Board, seven of the 12 members are new on the board. The Supervisory Board meets all its targets in terms of composition and competencies. In difficult times like these, smooth and solution-oriented cooperation between the Supervisory Board and the Board of Executive Directors is more important than ever. The Supervisory Board thanks the Board of Executive Directors for its extraordinary performance in view of the fundamental new challenges. In particular, the measures taken immediately in order to mitigate our dependence on natural gas and to maintain the Verbund production, in particular in Ludwigshafen, deserve our particular recognition.
This includes public statements on the relevance of secure and competitive gas supply for both the chemical industry and Germany as a business location. We would also like to extend our thanks to all the employees globally for their impressive commitment in times of major uncertainty. With a view to the further activities of the Supervisory Board, I would like to point out that there is a detailed written report as well as a corporate governance report in the BASF report on pages 169 to 178. The remuneration report can be found online at basf.com/vergütungsbericht. An overview of the remunerations of the board can be found on page 288 of the BASF report 2022.
This is the end of the public broadcast on the Internet. I would like to thank all the viewers who have pursued and followed our AGM to this point for their interest. Shareholders have the opportunity to follow the further course of the AGM live via the online service.