Braskem S.A. Annual Report 2015

Plain-text annual report

1 2015 | Braskem | Annual ReportSUMMARY MESSAGE FROM THE BUSINESS LEADER ........................ 3 PROFILE ................................................................................... 7 MARKETS AND NEW FRONTS ............................................ 11 CORPORATE GOVERNANCE .............................................. 22 SUSTAINABLE DEVELOPMENT .......................................... 31 FINANCIAL PERFORMANCE .............................................. 36 PEOPLE AND PROCESSES ................................................. 47 MORE SUSTAINABLE PRODUCTS .................................... 82 SOLUTIONS FOR SOCIETY ................................................. 97 VOLUNTARY COMMITMENTS ........................................... 115 CONTENT INDEX ................................................................. 121 GLOSSARY .......................................................................... 136 APPENDIX ........................................................................... 139 MESSAGE FROM THE ENTREPRENEURIAL LEADER G4•1 | G4•2 | GLOBAL COMPACT • PRINCIPLE 1 Based on a solid international- pressures that strongly impacted R$ 2.89 billion and financial ization strategy in the Americas, consumption of families and leverage, measured by the ratio pursued in recent years, and investments in production. between net debt and EBITDA, in the search for competitiveness dollars, closed the year at 1.91x, throughout the entire chemical This weak performance of the the lowest level in nine years. Net and petrochemical chain, Braskem Brazilian economy negatively revenue totaled R$ 47.3 billion, up has consolidated its position as a affected local demand for resins 3%. Of Braskem's total revenue, global player in the sector - an (PE, PP, and PVC), contributing the foreign market accounted for instrumental condition to ensure to a 7.6 percent downturn in the 43 percent. the perpetuity of its operations, domestic market compared with overcoming turbulent econom- 2014, totaling 4.9 million tons. The average rate for the ic cycles such as the one we are During the year, Braskem's market occupation of crackers in 2015 experiencing. share grew one percentage was 89%, three percentage point, and company sales totaled points above the previous year, We have undergone a period 3.4 million tons, six percent reflecting a good operational of uncertainty in the political below 2014, albeit less than the performance of the company and economic scenario, both retraction of the market. To offset with a record production in the domestically and internationally. this reduction in the domestic basic petrochemicals unit. If The deceleration of the Chinese market, Braskem geared part of it were not for the insufficient economy was higher than expected its production to foreign markets supply of raw materials to the and affected the imbalance in and increased its exports of Rio de Janeiro Complex, the different markets, most notably resins by 28 percent and of basic operation rate for the year would in emerging economies with a petrochemicals by one percent. have closed at 92%. In the higher dependency on the trade USA and Europe, the average flow with China, such as the case Thanks to the good operating activity rate for the industrial for Brazil. This context, coupled performance of its plants, to polypropylene (PP) units was with historical bottlenecks of larger sales by its operations in 98%, six percentage points the so-called "Brazil cost", and the United States and Europe, above 2014. aggravated by a prolonged to the increase in exports, political-institutional crisis, has coupled with the positive effect Regarding strategic projects, been deleterious to the growth of the exchange rate and the it is important to note the of the Brazilian economy. Proof international spreads in the final construction phase of of this was the drop of the Gross petrochemical sector, Braskem the petrochemical complex in Domestic Product (GDP) by 3.5 recorded strong results in 2015. Mexico, the Company's largest percent in 2015, compared with The company posted a record investment, together with the 2014 - the worst performance EBITDA of R$ 9.37 billion in the Mexican group Idesa, totaling in 25 years, followed by a hike year, 67 percent above 2014. In USD 5.2 billion. In 2015, the in interest rates and inflation the period, net profit reached number of workers on the 4 2015 | Braskem | Annual Reportproject peaked at 17,000 with With regard to its commitment conditions required to ensure a minimal injury rate - 0.41 per to sustainable development and competitiveness of the chemical million man-hours. Such level as a signatory to the UN Global and petrochemical industries, of excellence was recognized Compact, Braskem's commitments Braskem decided that signing by the DuPont Safety and also brought significant internal this contract was important to Sustainability Awards as a global and external achievements in reduce the uncertainties that highlight in the Industrial Safety 2015. The company advanced in haunt the industry. The decision category. The project provides several actions that resulted in could help prevent the shutdown a significant diversity in raw record results in all eco-efficiency of petrochemical plants during materials and geography to the indicators and was chosen the this difficult period for the industry Company's asset portfolio, with best company by CDP Brazil and the Brazilian economy. On a production capacity of 1.05 (Carbon Disclosure Project) in the the other hand, the Company million tons of polyethylene (PE) transparency category. Also, we secured an extension of its energy produced from ethane supplied were included in the 11th portfolio contracts at fair and long-term by PEMEX. of BM&F BOVESPA’s Corporate costs (up to 2037) for its most Sustainability Index (ISE), in energy-intensive units in the Throughout the year, Braskem the Dow Jones Sustainability Northeastern region, securing the brought important contributions Emerging Markets Index for the necessary supply from the electric to the development of products fourth consecutive time, and in utility company, Companhia for its Clients including more BM&FBOVESPA’s Carbon Efficient Hidrelétrica do São Francisco resistant bags for cement and Index portfolio (ICO2), for the (Chesf). concrete, with an additional layer fifth successive time. Regarding to ensure the conservation of the innovation, the Company was It is also worth noting the adoption product against humidity, thereby recognized through a survey of a successful program to reduce reducing losses. There were published by the Brazilian fixed costs, which generated also advances in the application newspaper Valor Econômico savings of R$ 156 million in its of polyethylene in agriculture, journal and the consulting first year of implementation. The recognizing the advantages of company Strategy& as the fourth program – which focuses on 11 using plastic film to cover soil most innovative company in work fronts and has the potential (mulching) in coffee and citric Brazil. fruit crops, which reduces water to save up to R$ 400 million per year on a recurring basis consumption and increases After almost three years of –should be fully acomplished productivity in the fields. In negotiations, Braskem signed in 2017. Regarding safety, the partnership with the coffee shop a new contract with Petrobras accident rate with and without network Starbucks, the WeCycle to supply a volume of seven lost time, including Members and platform was launched seeking to million tons per year of naphtha partners, was 0.68 per million value recycling of plastic waste in for five years. Although the new hours worked, the best result in different sectors of the economy. contract does not fully reflect the Braskem’s history. 5 2015 | Braskem | Annual ReportOUTLOOK FOR 2016 The challenges of the 2015 maintenance of its financial commitment to growth, acting macroeconomic agenda remain health and cost discipline. proactively to create value for ongoing throughout 2016. its Clients, Shareholders, and In Brazil, it is expected that Additionally, it is important society as a whole. These are the economy will continue to highlight in 2016 the start aspects that will contribute retracting while growth is of operations of the Complex to maintaining the soundness expected for the United States, in Mexico. Throughout the of the company and to face Mexico and Europe. About the year, the activity curve should turbulence of different natures dynamics of the oil market, increase more steeply after in Brazil and the world. there is a perspective for excess the second half of the year. In supply, a positive aspect for the the strategy for diversification Finally, I reiterate the competitiveness of naphtha- of raw material, the Company acknowledgement to Braskem’s based petrochemical players. will begin the project that teams and Shareholders, for their will enable importing ethane support in the materialization In this context, Braskem's from the United States to the of the Company's strategic strategy remains based on Camaçari complex, in Bahia, projects. To our Investors for diversification of the raw adapting part of the cracker the trust they have placed on us. material and geographic to operate using both gas and And to our Clients, with whom matrix; on strengthening the naphtha. relationship with its Clients; we have established a long- standing partnership. Together on the development of the True to its belief and purpose we can strengthen the value Brazilian petrochemical and to improve the lives of people chain of chemicals and plastics, plastics chain; and on the by seeking sustainable solutions the inspiration that invigorates quest for operational efficiency through chemicals and plastics, and motivates us to face the – without neglecting the Braskem will continue with its challenges of today. Fernando Musa Entrepreneurial Leader 6 2015 | Braskem | Annual ReportPROFILE G4•3 | G4•4 | G4•5 | G4•6 | G4•7 | G4•8 | G4•9 | G4•17 With global presence, Braskem works to ensure that chemicals and plastics contribute in creating sustainable solutions that help improve the quality of life and people. Who we are Braskem is the largest producer which translates into competitive development of petrochemical of thermoplastic resins advantages, such as production and plastic chains, on the quest (polyethylene, polypropylene scale and operational efficiency. for operational efficiency and and polyvinyl chloride) in geographic diversification, as well the Americas and the sixth Founded in August 2002 through as on maintaining its financial largest petrochemical Company the integration of six companies1 soundness and discipline in in the world, with annual of the Odebrecht Organization costs. To this end, the Company production of 16 million tons, and Mariani Group, Braskem2 is is committed to continuously including chemicals and basic headquartered in São Paulo and investing in Research and petrochemicals, such as has production units in Brazil, Development (R&D), supported ethylene, propylene, butadiene the United States, Germany and by two Innovation and and others. It is also the world's Mexico, in the latter through a Technology Centers, with an largest producer of biopolymers, joint venture with the Mexican integrated and complementary with annual capacity of 200,000 company Idesa. tons of Green Plastic I'm operation profile, located in Triunfo, Rio Grande do Sul greenTM, polyethylene produced In addition to the diverse matrix (Brazil) and in Pittsburgh, from 100% renewable sugar of raw materials, including Pennsylvania (USA). cane ethanol. renewable raw materials, and the creation of new sustainable With worldwide operations, Braskem is the only integrated plastic solutions, Braskem's Braskem has Clients in over 70 petrochemical Company of growth strategy is based on countries, served by 16 regional first and second generation strengthening the relationship offices located in the world's thermoplastic resins in Brazil, with its Clients, on the main economic centers. 1 Copene, OPP, Trikem, Proppet, Nitrocarbono e Polialden. 2 To identify entities included in the consolidated financial statements and entities not covered in the report, there are references to the financial statements of the holding company, which were developed according to accounting practices adopted in Brazil, pursuant to the provisions in Law No. 6.404/76 (Brazilian Corporate Law), and subsequent amendments, as well as standards issued by the CPC and in accordance with as IFRS (International Financial Reporting Standards) issued by IASB, and which are being published together with the consolidated financial statements. 8 2015 | Braskem | Annual ReportBRASKEM IN FIGURES 40 INDUSTRIAL UNITS 29 in Brazil, five in the United States, four in Mexico, and two in Germany 16 MILLION TONS/YEAR of thermoplastic resins and other chemical and petrochemical products 7,995 TEAM MEMBERS worldwide R$ 54 BILLION of Annual revenue R$ 9.4 BILLION in EBITDA3 in 2015 R$ 280 MILLION in spending on Innovation and Technology in 2015 ODEBRECHT ENTREPRENEURIAL TECHNOLOGY – TEO G4•56 | GLOBAL COMPACT• PRINCIPLE 10 Braskem follows a corporate culture by the Odebrecht Organization, Assets, promote effectiveness and common to all of its operations: and defined based on the beliefs of clarity in interactions between Odebrecht Entrepreneurial its founder, Norberto Odebrecht. Leaders and the Led, and seek Technology (TEO), a set of These principles establish ethical principles, concepts, and criteria values that make up the essence to of ensure the consistency corporate conduct in its shared by all Companies controlled of the Shareholders' Intangible various Businesses. Fundamental Principles of TEO • Trust in People, in their • Partnership among Team • Reinvestment of Results, capacity and desire to progress. Members, who participate in in order to create new job • Client Satisfaction, by serving planning and implementation of opportunities and contribute to with an emphasis on quality, the work, and the results that it developing communities. productivity, and social and generates. economic responsibility. • Self-development of People, • Return to Shareholders especially by means of Education and valuing their equity. through Work, ensuring the Survival, Growth, and Perpetuity of the Organization. 3 Earnings before interest, taxes, depreciation and amortization. 9 2015 | Braskem | Annual Report TEO Portal Aiming to contribute to Its content includes excerpts Fundamental to the process of disseminating the culture's from the books Sobreviver, integrating new professionals, in concepts and principles, the TEO Crescer e Perpetuar (Survival, 2015, the TEO Portal had over Portal was launched three years Growth, and Perpetuity), written 11,000 views, and browsing analysis ago, which includes articles, videos by Norberto Odebrecht, learning demonstrated that many Team of Leaders, and excerpts from tools about the culture that are Members return to access the vast references in the original books continuously used by Learders content available in Portuguese, written by Norberto Odebrecht. in face-to-face communication. English, German, and Spanish. Learn more at: Braskem > Principles and Values Memory Portal: a new platform for the Company's historical records Aiming to preserve corporate images, videos, advertisements, 17,000 archives. The purpose of memory, in 2012, Braskem and other countless pieces that the platform is to concentrate began a permanent historical bring back the history of the historical material from the entire heritage management program. Company, and of its acquired Company and continue increasing The process of collecting and businesses, over the years, and its total archives. To encourage organizing the archives carried consequently, a significant portion constant recording of historical out over three years culminated of the history of the Brazilian moments and establish a in the launch of the Memory petrochemical industry. collaborative dynamic, there is a Portal in December 2015. Between Brazilian petrochemical tool allowing the Team Members This platform, in four languages records and records of Braskem's to contribute via the Memory (Portuguese, English, German, important achievements, such Portal, a platform with access and Spanish), makes digital as opening the green ethylene restricted to the Company's archives available to Team production plant, the Memory internal audience. Members in the form of text, Portal currently joins over 10 2015 | Braskem | Annual ReportMARKETS AND NEW FRONTS Braskem is the only integrated petrochemical Company in Brazil, and the largest in the Americas, that produces first and second generation thermoplastic resin. The Company is also the largest producer of polypropylene in North America and the global leader in the production of biopolymers. The Chemical and Petrochemical Industry G4•2 From footwear to packaging materials with high value added Thermoplastic resins (PE, PP, for food and electronic devices, with several applications in the and PVC) are commodities sold today it is difficult to find plastics transformation industry in global markets. The prices of consumer goods in modern for manufacturing products that these resins are influenced by society that do not use materials reach end consumers. global macroeconomic factors, produced by the chemical and and formulated based on the cost petrochemical industry. Because it involves complex of raw materials, demand trends production processes in the sectors that use these The first generation of the at different stages, the resins, and the cost of transport. chemical and petrochemical petrochemical industry depends With this, the profitability of industry is formed by companies on the application of intensive companies manufacturing these that use raw materials such as capital, which is only justified products is evaluated according naphtha, a by-product of oil by increasing gains in scale. to the concept of “spread” (the refining, and natural gas to be This is a characteristic that, difference between the price of manufactured into basic chemical beginning in 1990, led to the resin and the cost of the base inputs, such as ethylene, the formation of large global raw material for production), propylene, and butadiene. The conglomerates such as Braskem, which on a larger scale are second generation of the chain the Brazilian representative in mainly naphtha or natural gas, involves the production process the international industry, and inputs priced according to the for thermoplastic resins - the sixth largest petrochemical behavior of prices of barrels of polyethylene (PE), polypropylene Company in the world in oil sold in the global market. (PP), polyvinyl chloride (PVC) – production capacity. 12 2015 | Braskem | Annual Reportspreads 1000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 spreads Based on the chart above, 2002 highlighting the period beginning continued at healthy levels, but represented the end of the at the end of 2008, when the low cycle in which the lowest global economic downturn spreads for resins were recorded affected the profitability of the in recent years and, from this petrochemical industry and date, the high petrochemical demonstrated recovery after cycle was initiated, with spreads the second quarter of 2009. at levels lower than in 2014. The expectation is that by 2017 and 2018, with the entry of new production capacity for ethylene in the world, the petrochemical reaching over US$500.00 per More recently, in 2015, spreads will continue to drop. ton. Additionally, it is worth the petrochemical spreads 220,000 180,000 140,000 100,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Production Domestic Demand Capacity 13 2015 | Braskem | Annual Report Business Model INTEGRATED OPERATION IN THE PETROCHEMICAL CHAIN G4•EC8 Braskem is the only petrochemical manufacturing thermoplastic resins of hydrocarbon chains that enable Company in Brazil with a business (PE, PP, and PVC), sold to Clients the production of petrochemical model that integrates first and on the chain's third generation, products. In this context, second-generation operations, formed by plastic converters. integrating first and second- producing basic chemical inputs generation operations guarantees such as ethylene and propylene The structure of Braskem's competitive advantages, such as from naphtha, natural gas, and operation requires investment production scale and operational ethane. These compounds are fundamental for the second in as intensive capital such efficiency, which are strategies crackers responsible for for the Company's growth generation, which involves separation processes (cracking) and continuity. 14 2015 | Braskem | Annual ReportBELIEF: PLASTIC AND CHEMICALS MAKE LIFE BETTER PURPOSE: IMPROVE PEOPLE’S LIVES BY CREATING SUSTAINABLE SOLUTIONS THROUGH CHEMICALS AND PLASTICS INPUTS SEGMENTS/PRODUCTS MARKET AND SOCIETY A H T H P A N S A G L A R U T A N L O N A H T E 100% 68% 50% 0% 100% 50% 31% 0% 100% 50% 1% 0% FOOD PACKAGING CONSTRUCTION INDUSTRIAL INDUSTRIAL BASIC PETROCHEMICALS (1ST GENERATION) RETAIL 4 5 3 POLYMERS (2ND GENERATION) AUTOMOTIVE HYGIENE AND CLEANING OTHER CONSUMER GOODS AGRIBUSINESS 27% 16% 11% 9% 9% 8% 8% 7% 5% BIOPOLYMERS MARKET SHARE 67% SOCIAL INVESTMENT AND COMMUNITY INNOVATION: DELEVOPMENT OF PRODUCTS AND APPLICATIONS Non-renewable resources Waste Health and safety Post-consumption Free competition Local suppliers Product development – environmental Social investment and community Development of social products Water Energy and climate change Air Safe use of products Economic performance Public policy Local workforce Transparency and ethics Material Aspects: Environmental Economic and governance Social 15 S T C A P M I N I A M ) s t c e p s a l a i r e t a M ( 2015 | Braskem | Annual Report BUSINESS PILLARS Braskem's operations are guided perpetuate are key words for the its eye on internationalization, the by pillars that direct its growth development of a Company focused sustainability of its operations, and strategy. Survive, grow, and on the Client and the market, with product and process innovation. Strategic Pillars Survive Grow Perpetuate • Focus on the Client and • Geographic diversity the market • Serve the Brazilian market • Competitive raw • Renewable chemicals material and energy • Productivity and operational efficiency • • • Skills and technology People and organization Sustainability and innovation 16 2015 | Braskem | Annual ReportSurvive: protecting value Based on these guidelines, the changing and strengthening the in the Americas, with entry in the Company invests in different petrochemical chain (first, second, Braskem Idesa operation, and initiatives adopted to guarantee and third generations). Beginning several investments in the units protection of value for Shareholders with a strong partnership with in the United States. However, a and mitigate risk factors, among Clients, when developing new growth project cannot be carried them dependence on the input projects such as the search for out without special attention to matrix, naphtha, the challenge of innovation - its strategy is also sustainable development and a competitiveness of the Brazilian driven by the search for more strong commitment to the health industry, the water shortage, efficient raw materials that reflect and safety of its Team Members lack of adequate post-consumer on productivity, bring results, and and the communities in which the solutions, and attacks on image generate an increase in operational Company operates. Therefore, and reputation. profitability and cost management. Braskem places among its pillars With focus on structured the concern for the development operations in each of the strategic This work, focused on business of a chemical based on renewable pillars, Braskem recognizes the continuity, increasingly consolidates sources of raw material, 100% importance of training its staff to the Company in the Brazilian recycled plastics, and technology support the Client when building market and strengthens the path that helps reduce consumption and competitive business, and to internationalization – especially preserve natural resources. Grow and Perpetuate: creating value Aligned with the global governance agenda for sustainable development, Braskem seeks to grow by creating value for Shareholders and gains in competitiveness obtained through new, more efficient industrial processes based on renewable sources. Growth Drivers BRAZIL • Commitment to supplying the growing domestic demand for thermoplastic resins, seeking to add value to already existing currents. • Strategically well positioned to grasp future availability of raw material. • Commitment to competitiveness and the development of the Brazilian petrochemical and plastics chain. • Expand with future availability of raw material. • Diversification of raw materials. INTERNATIONALIZATION • • Broaden presence in countries with competitive raw material. Be a preferred partner for the development of the Latin American petrochemical industry. SUSTAINABLE CHEMICALS • Capture the advantages of Brazilian ethanol and bring. innovative solutions that guarantee the chain's sustainability. • Develop new paths to growth through the use of renewable raw material. 17 2015 | Braskem | Annual ReportBRASKEM IN THE WORLD PITTSBURGH MEXICO NETHERLANDS GERMANY Wesseling (1) Schkopau (1) UNITED STATES West Virginia (1) Texas (3) Pennsylvania (1) MÉXICO Braskem Idesa Petrochemical Complex, located in Nanchital, in the state of Veracruz. VENEZUELA COLOMBIA PERU CHILE TRIUNFO ARGENTINA INDUSTRIAL UNITS BASIC PETROCHEMICALS: Camaçari (BA) Duque de Caxias (RJ) Mauá (SP) Triunfo (RS) PVC AND SODA: Maceió (AL) Marechal Deodoro (AL) Camaçari (BA) POLYETHYLENE (PE) Cubatão (SP) Santo André (SP) POLYPROPYLENE (PP) Mauá (SP) Paulínia (SP) Schkopau e Wesseling (Alemanha) Marcus Hook (Pennsylvania) La Porte (Texas) Oyster Creek (Texas) Seadriﬀ (Texas) Neal (West Virginia) PE + PP Camaçari (BA) Duque de Caxias (RJ) Triunfo (RS) GREEN PE: Triunfo (RS) BRAZIL SINGAPORE ADMINISTRATIVE OFFICES INNOVATION AND TECHNOLOGY Administrative headquarters: São Paulo (management and administrative oﬃces) Philadelphia (Pennsylvania/USA) Frankfurt (Germany) Escritórios administrativos: Salvador (BA) Porto Alegre (RS) Commercial oﬃces: Germany Argentina Chile Singapore Colombia United States Netherlands México Peru Venezuela Centers for Technology and Innovation: Triunfo (Brazil) Pittsburgh (USA) Partnership with companies and external laboratories for research in chemistry and polymers, petrochemical or renewable source. PE polyethylene PP polypropylene PVC polyvinyl chloride GREEN PE Polyethylene manufactured from sugarcane ethanol, renewable raw material source. To learn more, visit Braskem > Braskem in the world 18 2015 | Braskem | Annual Report PITTSBURGH MEXICO NETHERLANDS GERMANY Wesseling (1) Schkopau (1) UNITED STATES West Virginia (1) Texas (3) Pennsylvania (1) MÉXICO Braskem Idesa Petrochemical Complex, located in Nanchital, in the state of Veracruz. BRAZIL SINGAPORE VENEZUELA COLOMBIA PERU CHILE TRIUNFO ARGENTINA INDUSTRIAL UNITS BASIC PETROCHEMICALS: Camaçari (BA) Duque de Caxias (RJ) Mauá (SP) Triunfo (RS) PVC AND SODA: Maceió (AL) Marechal Deodoro (AL) Camaçari (BA) POLYETHYLENE (PE) Cubatão (SP) Santo André (SP) POLYPROPYLENE (PP) Mauá (SP) Paulínia (SP) Schkopau e Wesseling (Alemanha) Marcus Hook (Pennsylvania) La Porte (Texas) Oyster Creek (Texas) Seadriﬀ (Texas) Neal (West Virginia) PE + PP Camaçari (BA) Duque de Caxias (RJ) Triunfo (RS) GREEN PE: Triunfo (RS) ADMINISTRATIVE OFFICES INNOVATION AND TECHNOLOGY Administrative headquarters: São Paulo (management and administrative oﬃces) Philadelphia (Pennsylvania/USA) Frankfurt (Germany) Escritórios administrativos: Salvador (BA) Porto Alegre (RS) Commercial oﬃces: Germany Argentina Chile Singapore Colombia United States Netherlands México Peru Venezuela Centers for Technology and Innovation: Triunfo (Brazil) Pittsburgh (USA) Partnership with companies and external laboratories for research in chemistry and polymers, petrochemical or renewable source. GREEN PE polyethylene Polyethylene manufactured from sugarcane ethanol, renewable polypropylene raw material source. PE PP PVC polyvinyl chloride BRASKEM IDESA PETROCHEMICAL COMPLEX COMES INTO OPERATION G4•13 The year 2015 marked the beginning With the start of operations planned The Braskem Idesa Petrochemical of a new phase for Braskem's global for the beginning of 2016, the Complex has annual production expansion strategy. At the end of project budgeted at R$ 15 billion capacity of 1.05 million tons of 2015, the Brazilian Company, in and the biggest petrochemical high and low density polyethylene a joint venture with Grupo Idesa, industry in Latin America in resin, as well as an equivalent reached 99% of physical progress recent years, reduces the volume of ethylene from ethane on the construction of the Etileno Country's dependence on imports gas, whose supply is ensured by XXI (Ethylene XXI) project, a new of petrochemical products and a 20 year-contract with Mexican Petrochemical Complex to produce strengthens Braskem's participation oil company Pemex. ethylene and polyethylene, located in meeting the demands of in Nanchital, in the State of global Clients, especially in the Veracruz, in Mexico. packaging industry. Figures of the Mexican market TOTAL NUMBER OF CLIENTS: 1,500 transformers MARKET DEMAND: 2.1 million tons/year polyethylene PRE-MARKETING NEGOTIATIONS: 100,000 tons in 2015 In its first year alone, the Company reached 25% of the objective for future sales commitment memoranda with pre-marketing Clients: focus on 305 key Clients Project structure and competitive and environmental advantages • Boilers: the project has silos with capacity of 1,000 long-term contract with natural gas boilers to cubic meters each, and Mexican oil company PEMEX. generate steam for power other support facilities. In • Energy: from the new generators (combined-cycle 2015, the Company signed a equipment installed, the turbines) and compressors. contract with five distribution complex will have 12% • Logistics network: companies and five logistics reduction in specific energy operated from railways operators. consumption relative to interconnecting the • Fleet: composed of 1,300 the average of all Braskem Southeast region, where it is train cars used for distribution operations. located, to the Central and of polyethylene production in • GHG: reducing the intensity North regions of the Country. the domestic market and for of greenhouse gas emissions The logistics platform is export. (GHG), 28% lower than the considered one of the largest • Infrastructure: Braskem average. in Latin America with an area construction of 200 • Water: reclaimed water of approximately 20 hectares, kilometers of pipelines to facilities that should provide a covered warehouse of supply 1.23 million tons of a water reuse rate of 20,000 square meters, 21 ethane gas a year, through approximately 20%. Braskem Idesa Complex: an example of safety Ethylene XXI: best pre-marketing of the Company In 2015, the Braskem Idesa Petrochemical Complex In pre-marketing sales alone, the Company became a benchmark in safety. The project consolidated, reached 100,000 tons of products traded in 2015 at the end of the year, an accident rate of 0.44 per from the operation of the Mexican complex, which million man-hours, considering direct involvement in the was regarded as one of the most interesting pre- construction work of 17,000 workers (peak in 2015). marketing operations in the history of Braskem. Given the performance in safety in Mexico, the project The Braskem Idesa Petrochemical Complex will help received the Industrial Safety Award, from DuPont as a increase Braskem's participation in sales of chemical global highlight in construction safety. inputs and thermoplastic resins to the United States. Biodiversity G4•EN12 | G4•EN14 During the construction phase, expanding by a factor of five the Of the 200 hectares of land acquired three programs were implemented total population initially identified. for the project, 30 remained to reduce impacts on biodiversity: • Salvage and relocation of 549 untouched as environmental • Relocation, conservation, and individuals of the local wildlife, conservation area. In addition, multiplication of the vegetation among amphibians, reptiles, and 100 hectares were acquired for of 331 plants of the species mammals. management and conservation of Ceratozamia Miqueliana (a • Reforestation process by planting biodiversity, as well as other projects rare and endangered species), approximately 300 hectares. in third-party areas. 20 2015 | Braskem | Annual ReportEthylene XXI: best pre-marketing of the Company Social projects Along with the completion which in 2015 achieved a total of communities, Braskem Idesa of the Ethylene XXI Project, 17,000 people, with 90% recruited invests in social projects that Braskem Idesa advanced in the from the region surrounding have been implemented since demobilization process of the the petrochemical complex. 2014 and which also reached teams of workers who worked With the goal of transferring their mature stage in 2015. directly in the construction – earnings of the complex to local 1. Training of manpower for jobs associated with the Ethylene XXI Project Actions in partnership with the Government Training focused on developing skills to the of the State of Veracruz involved four required positions, such as industrial welding, communities surrounding the project. use of forklifts, and industrial painting. 2. Incentive to entrepreneurship Since 2014, Braskem Idesa has mapped were formed with the involvement regional suitability for the development of of 200 people, 93% of them women. production chains through entrepreneurship Regularization of these activities enabled projects. In 2015, this work evolved into the beginning of the businesses that hiring consulting services and training related to these actions. courses. As a result, 13 formal cooperatives Projects that were implemented were • • • Tilapia farming Production of cleaning products Production of uniforms and recycling of materials provided by Braskem Idesa for craft production and chicken farming. 21 2015 | Braskem | Annual ReportCORPORATE GOVERNANCE G4•34 Corporate Governance at Braskem is based on ethics, transparency and respect for Clients, Team Members, Shareholders, Suppliers and all other audiences with whom the Company interacts. Braskem operates in line with best • Disclosure corporate governance practices in statements of in financial Bolsas y Mercados Españoles English, (BME), in Spain. In 2005, Braskem the market, having as a priority according to international was one of the first Foreign Private in this model responsible and standards (IFRS). Issuers (FPIs) in South America transparent management of all its • Board of Directors with at least to adjust to the requirements assets. These principles are part of five members, unified term of of Sections 404 and 302 of the the Public Commitment assumed up to two years, allowing for Sarbanes-Oxley Act (SOx). by the Company since its formation re-election, and at least 20% in 2002, and that represents a of Independent Members. For the fifth consecutive time, differentiator perceived by Team • 100% tag along for all shares Braskem was chosen to join Members, Clients, Shareholders, in the event of change in the BM&FBOVESPA carbon Suppliers, and Society. controlling interest. efficient Index (ICO2) portfolio, and remained on the list of the The Company operates Outside of Brazil, Braskem's Corporate Sustainability Index within the highest corporate shares are also listed on the New (ISE) of the São Paulo Stock governance standards in the York Stock Exchange (NYSE) and Exchange (BM&FBOVESPA), market, participating in Level 1 Latibex – Latin American section a position the Company has of the São Paulo Stock Exchange of the Madrid Stock Exchange – held since the creation of the (BM&FBOVESPA) since 2003 and and, for this reason, are subject to index in 2005. In addition, meeting some requirements of the requirements of the respective the Company is also listed on Level 2 and Novo Mercado (special regulatory bodies, namely, the Dow Jones Sustainability listing segments of BM&FBOVESPA Securities Exchange Commission Index (DJSI) of the New York companies ), including: (SEC), in the United States and Stock Exchange, since 2012. Communication: transparency in relations with the market and internal audience G4•58 As part of its legal commitments, In addition, the members of the To the internal audience, the Braskem regularly sends Board of Directors and Fiscal communication channel Braskem information to the Securities Council provide an exclusive View (intranet), developed in and Exchange Commission information channel that can Portuguese, English, and Spanish, (CVM) and to the São Paulo be accessed on the company's publishes the Company's national (BM&FBOVESPA) and New York website on the Internet, which and regional news, business and (NYSE) Stock Exchanges, as provides security, transparency, corporate information, products, standardized financial statements, fairness and speed in the campaigns and internal processes press releases, relevant facts, process to communicate with and acknowledgments. among others. Shareholders. These documents are available on the Company's investor relations website Braskem > Investor Relations 23 2015 | Braskem | Annual ReportCode of Conduct: Ethics and Integrity G4•56 | G4•57 Operating in accordance with the recommended practices to ensure that force in order to ensure full assimilation applicable laws, regulations, policies Braskem is adherent to the best global of content by all Team Members. and best practices is a fundamental processes. In relation to the Code of principle of Braskem. Conduct, it was last reviewed in 2014, Braskem's Code of Conduct is with subsequent dissemination of translated into all languages of Effective compliance represents for its contents to all Team Members of the countries where Braskem has Braskem an intangible asset, in the the Company. The process included operations. It can also be accessed protection and strengthening of questionnaires on the subject and through the corporate intranet the Business. The constant review electronic signature of the term of and the website of the Company of the compliance standards, as commitment with the guidelines of (www.braskem.com). well as of the code of conduct, are the Code. It is a model that remains in Ethics Line Channel G4•58 In a cross-sectional manner, operations. All information received Manager. No retaliation is allowed Braskem offers the Ethics Line through the channel is investigated or tolerated against those who, in Channel. Through this channel, respecting confidentiality Team Members, Suppliers, independence, ensuring and the good faith, report a concern about a conduct that is not in compliance with Third Parties, Clients and other anonymity of denouncers and the guidelines laid down in the Code stakeholders can, in a secure security in investigation. of Conduct. and responsible way, contribute information to maintain a corporate The results from the respective The following diagram presents a environment that is trustworthy, investigations are presented and summary of the cases recorded secure, ethical, transparent and discussed in the Ethics Committee, through the Ethics Line and the productive. This channel can be composed of the Legal Representative, remedies taken by the Company in accessed via the Company's Corporate Security Manager, People response, with a breakdown of cases website or toll free in the language and Organization Manager, Finance concerning corruption, conflicts of of the countries where Braskem has Manager, and Institutional Relations interest, and discrimination. Learn more at Braskem > Ethics Line MAIN RESULTS FROM THE ETHICS LINE 2015 29 cases opened in 2014 started under an investigation process in 2015 85 cases opened in 2015 31 cases opened in 2015 under an investigation process in 2016 18 cases filed without deviation of conduct 11 cases filed with deviation of conduct, with the following remedies taken: • • • • 3 Team Members terminated 1 Partner suspended 6 Suppliers blocked 15 process improvements implemented 35 cases filed without deviation of conduct 19 cases filed with deviation of conduct, with the following remedies taken: • • • 5 Team Members terminated 4 Partners suspended 2 cases passed on to the Federal Public Attorney's Office 23 process improvements implemented • Considerations: • The cases of the Ethics Line are filed in the quarterly meetings of the Ethics Committee The last meeting of 2015 was held on December 3, 2015 All actions subsequent to this date will be announced in the next Annual Report • • 24 2015 | Braskem | Annual Report CASES OF DISCRIMINATION4 G4•HR3 Number of Cases with legal basis: four Measures adopted by the Company: the Team Members involved received feedbacks and P&O is following the development of these professionals. There was no new evidence of deviation of behavioral conduct on the part of these Team Members that have been reported to the Corporate Security area. CASES OF CORRUPTION AND CONFLICT OF INTEREST5 G4•SO5 Number of confirmed cases: no case of corruption and four cases of conflict of interest, without involvement of public agents Type of cases: Team Members sought benefits for themselves (without involvement of public agents) Actions taken: three Team Members were terminated. In one of the cases, the Supplier was blocked. In the other three, there was no direct involvement of Suppliers or the infraction was direct between Team Member and Braskem. Learn more at Braskem > Corporate Governance Note: There was no public corruption-related lawsuit against Braskem or its members in 2015. 4 and 5 Registered in the Ethics Line Channel 25 2015 | Braskem | Annual ReportGOVERNANCE STRUCTURE G4•34 | G4•39 The coordination between the of Directors, Fiscal Council, of the Corporate Security area, corporate governance agents – The Business Leader, Executive Board which acts as an internal audit General Meeting of Shareholders, and Independent Auditors – takes regarding the activities carried Board of Directors, Standing place through Braskem's Corporate out by the Fiscal Council, as Committees to Support the Board Governance area with the support shown below: ) G N I T E E M L A R E N E G ( S R E D L O H E R A H S STRATEGY AND COMMUNICATIONS COMMITTEE (CEC) PEOPLE AND ORGANIZATION COMMITTEE (CPO) FINANCE AND INVESTMENT COMMITTEE (CFI) PERMANENT BOARD OF DIRECTORS SUPPORT COMMITTEE BOARD OF DIRECTORS BUSINESS LEADER EXECUTIVE BOARD S T N E I L C FISCAL COUNCIL (WITH RESP. OF AUDIT COMMITTEE) CORPORATE SECURITY (*) INDEPENDENT AUDIT CORPORATE GOVERNANCE SUPPORT Note: Governance structure 31/12/2015. *Area responsible for Internal Audit and Compliance The responsibilities of each of the Board of Directors (CA): it is an on investments within its purview, as agents of Braskem's corporate autonomous body of a collegiate well as other responsibilities provided governance structure are aligned nature with its operations regulated for in the By-laws. with the goals to create value for the by the current legislation, by the Company's Shareholders and include By-laws and Rules of Operation. It It is formed by 11 Board members the following scope of operation: is responsible for accountability to and their respective alternates, General Meeting of Shareholders Shareholders, other stakeholders and elected or removed from Office at (AG): sovereign body, which has society at large, and for the tangible any time by the General Meeting the power to decide on all business and intangible assets used in the of Shareholders. This instance is relating to the corporate purpose of administration of the Company. Its composed of two independent Board the Company and take resolutions main responsibilities are: to guide members, independent in relation to it deems convenient to its defense the Company's business, monitor the controlling Shareholder, according and development. Its competencies, its operation and administration, to best governance practices indicated forms and operation are governed decide on strategic issues, guide the by BM&FBOVESPA and the guidelines by the Brazilian Corporate Law Executive Board on relevant issues, of the Sarbanes-Oxley Act. None of the (Law No. 6,404) and its subsequent approve generally applicable policy members of the Board of Directors has amendments. proposals of the Company and decide an executive role at Braskem. 6 On December 31, 2015, the Board of Directors had three open positions awaiting indication of Shareholders to recompose the Board of Directors. 26 2015 | Braskem | Annual Report On December 31, 2015, Braskem's Board of Directors had the following composition: HOLDERS ALTERNATES Newton Sergio de Souza Chairman of the Board of Directors Patrick Horbach Fairon Vice Chairman of the Board of Directors Roberto Prisco Paraíso Ramos Luis Adolfo Pereira Beckstein Alfredo Lisboa Ribeiro Tellechea Luiz de Mendonça Álvaro Fernandes da Cunha Filho Independent member Paulo Oliveira Lacerda de Melo Antônio Aparecida de Oliveira Marcus Vinicius de Oliveira Magalhães Andrea Damiani Maia Marcela Aparecida Drehmer Mauricio Roberto de Carvalho Ferro Roberto Zurli Machado Independent member Arão Dias Tisser Daniel Bezerra Villar Mauro Motta Figueira Luciano Dequech José de Freitas Mascarenhas Standing Committees to Support the Board of Directors (Committees) The Board of Directors has three Damiani Maia (Coordinator), Prisco Paraíso Ramos, Antônio Committees provided for in the Álvaro Fernandes da Cunha Aparecida de Oliveira, and By-laws and in the Shareholders' Filho, Daniel Bezerra Villar, and Roberto Zurli Machado. Agreement, which integrate the Paulo Oliveira Lacerda de Melo. corporate governance structure. Strategy and Communication They aim to assist the Board Finance and Investment Committee (CEC): with of Directors in pre-established Committee (CFI): supervises regard to strategic directives, matters and are composed of the policies related to finance; the CEC evaluates definitions four directors each. They are: insurance and guarantees; for planning and preparation financial risk management; of the Action Plant of the People and Organization the annual and quarterly Business Leader. With regard Committee (CPO): supervises results; the alliance agreement; to communication issues, the policies and programs related evaluates and supervises the Committee supervises policies to People and Organization, investment projects approved and programs of institutional such as compensation, code by the Board of Directors, image, sustainability, of conduct, health, safety and as well as contributes to the social responsibility and environment, and the private development of the Action communication with the capitals pension programs. In addition, Program (PA) of the Business market. CEC is formed by the CPO reviews significant Leader (LE) to be proposed Mauricio Roberto de Carvalho changes in macrostructure and to the Board of Directors, Ferro (Coordinator), Alfredo replacement and succession of among other issues. The CFI is Lisboa Ribeiro Tellechea, and executives in strategic positions. formed by Marcela Aparecida Patrick Horbach Fairon. The CPO is formed by Andrea Drehmer (Coordinator), Roberto 27 2015 | Braskem | Annual ReportPermanent Fiscal Council (CF) The activities of the Fiscal Council order to ensure fulfillment of their as the reports on internal controls are governed by Law 6,404, by legal and statutory duties, issuing containing the points that could Braskem's By-laws and its Rules opinions and providing information impact the Company's financial of Operation, as well as, to the to Shareholders; (b) follow up on statements; and (f) analyze extent compatible with the Brazilian annual and quarterly results of and recommend to the Board legislation, by the SOx of the United the Company; (c) approve the of Directors the appointment of States. In view of the requirements annual list of pre-approved services independent auditors. The Fiscal demanded by SOx, the Fiscal that can be provided by the Council is formed by five Board Council had its activities expanded in independent auditors; (d) oversee members and their respective 2005, acquiring the responsibilities the work of internal and external alternates, elected or removed of an Audit Committee. Its main audit; (e) analyze the report of from Office at any time by the responsibilities are: (a) supervise recommendations prepared by General Meeting of Shareholders, the acts of the Administration, in the independent auditors, as well for a term of one year. On December 31, 2015, Braskem's Fiscal Council was composed of: HOLDERS Marcos Antônio Zacarias President of the Fiscal Council Aluízio da Rocha Coelho Neto Ismael Campos de Abreu ALTERNATES Hubert Georg Deierl Tatiana Macedo Costa Rego Tourinho Afonso Celso Florentino de Oliveira Luiz Gonzaga do Monte Teixeira Amós da Silva Câncio Gilberto Braga Ana Patricia Soares Nogueira Business Leader and Executive Board Braskem's Executive Board has its As provided for in its By-laws, the The President, in performing his role operations regulated by the legislation Statutory Board is a permanent as a Business Leader, is responsible and By-laws, and its responsibilities body of the Company, and must for creating the conditions necessary are management of the business and be composed of at least four and at for the Survival and Growth of of the Company's functional areas, as most ten members, with a President, Braskem and for the development well as the implementation of general a Director of Investor Relations, and and consolidation of the bases for policies and guidelines set out by the other Directors without specific Perpetuity of the Company as defined the Board of Directors. designation, elected by the Board of by TEO. Braskem's Executive Board is composed of: Directors. Carlos Fadigas* President Mário Augusto da Silva* Director of Finance and Investor Relations Marcelo de Oliveira Cerqueira* Responsible for the Basic Petrochemicals Unit Luciano Nitrini Guidolin* Responsible for the Polyolefins, Vinyls and Renewables Unit Gustavo Sampaio Valverde* Responsible for the Legal and Corporate Governance Departments Marcelo Arantes de Carvalho* Responsible for People & Organization, IT and Procurement Marcelo Lyra do Amaral Responsible for Institutional Relations and Sustainable Development Fernando Musa Roberto Bischoff * Statutory Directors Responsible for the United States and Europe Unit Responsible for the Latina America Unit 28 2015 | Braskem | Annual ReportIndependent Audit Corporate Security Is responsible for issuing technical Is responsible for evaluating the opinions about the Financial processes regarding effectiveness Statements with independence of risk management and internal and in compliance with the controls and compliance with current legislation. Companies internal policies and guidelines that provide audit services are and market regulations, replaced every five years, at the independently and through most, as determination of CVM a systematic and disciplined Instruction No. 308/09. approach, with the purpose of improving the effectiveness of operations and add value to the business. Internationalization and improvement of Corporate Security The global economy requires operating model, Braskem Program demonstrates that it is Braskem's ongoing commitment advances in strengthening possible to increase the reach of based on best practices the Corporate Security area its scope of activity and improve worldwide, on the topics and the Compliance program its effectiveness through of Corporate Security that in a manner that is aligned incorporation of best practices include compliance issues, risk with best practices and public captured in each location where management, internal audit, commitments that highlights its Braskem has operations in order and management of the Ethics operating model in the market. to maintain the effectiveness of Line Channel. As part of this process, the the Corporate Security program As it consolidates a global Braskem Corporate Security globally. They are: People Strengthening the corporate Processes To simplify, standardize and qualify Technology Continuous monitoring of risk structure with the Compliance the processes, Braskem adopted a indicators of key processes, as program for supporting key project for integrated management well as the global solution for Risk areas. Formation of a single of business called Formula. Management and Compliance and Ethics Committee for the entire Braskem has a unique Code of automation of tests of key controls. global operation, with capacity Conduct and establishes a process building and training taught by for receipt and investigation of local teams of each Country, reports from the Braskem Ethics under guidance of the Corporate Line channels. A unique platform Compliance team. of knowledge management of policies, guidelines and procedures was also implemented. 29 2015 | Braskem | Annual ReportAnti-corruption Action A signatory to the Global Compact focusing on expansion of discussions of the United Nations (UN), Braskem on the importance of effective engaged in leading anti-corruption compliance programs, presenting actions, one of the 10 principles best practices of prevention and listed in the Compact. In 2015, the mitigation of risks of corruption. Company took over the coordination In addition, it was responsible for of the Working Group (WG) Anti- translating into Portuguese the Guide corruption of the Brazilian Network for Anti-Corruption Risk Assessment, of the Global Compact, the fourth prepared by the United Nations, largest network in the context of the and developed an Anti-Corruption organization, with more than 700 booklet, released in Brazil on participating companies. December 9, when the International Anti-Corruption Day is celebrated. In this context, the WG, coordinated by a lead of Braskem, held workshops and conducted training courses 10 Principles of the Global Compact Braskem has been a signatory to Braskem is also a member of the the Global Compact of the United LEAD Group, leading companies Nations (UN) since 2007 and is in of the Global Compact selected the lead among the participating among all the signatories in the companies with the highest levels world, since 2013. In addition, of communication on progress in 2014 the Company held a in the adoption of the 10 Global seat on the Steering Committee Compact principles. Since 2008, of the LEAD Group. Members of the company has integrated the group have the opportunity the Brazilian Global Compact to closely monitor the Global Network, responsible for its Chair Compact initiatives and influence for the 2013 – 2014 biennium. their strategic decisions. 30 2015 | Braskem | Annual Report10 Principles of the Global Compact SUSTAINABLE DEVELOPMENT Braskem's objective is to become a benchmark in sustainable development. To this end, the Company sets strategic goals focusing on processes, resources, and products that provide a more balanced future based on best social, environmental and economic practices. Management of sustainable composed of 92 companies, 16 These achievements confirm practices continues to be of them Brazilian. In addition, the Company's commitment to prominent in all actions undertaken for the fifth time, Braskem was the world's best sustainability at Braskem. For the fourth selected to compose the Carbon practices in the industry. Its consecutive year, the Company Efficient Index Portfolio (ICO2) operation is guided by a concept has maintained its position on the by BM&FBOVESPA, and remained of sustainable development Dow Jones Sustainability Emerging on the Corporate Sustainability encompassing the economic, Markets Index, a sustainability Index, also by the São Paulo Stock social, and environmental pillars index of companies in emerging Exchange (BM&FBOVESPA), a related to the Company's activities countries listed by the New position held since the creation of and production chain. quadro_materialidade.pdf 1 5/7/16 13:09 York Stock Exchange (NYSE) the index in 2005. MATERIALITY G4•18 | G4•19 | G4•20 | G4•24 | G4•25 | G4•26 | G4•27 Braskem's materiality matrix In order to reach this goal, the ten strategic macro-objectives for reflects its concern with minimizing Company carried out a survey with sustainability cover these material Desenvolvimento sustentável maximizing its positive influence. defined the material aspects. The stakeholders. its negative impacts and its main stakeholders, and together aspects for the Company and its C M Y CM MY CY CMY K Para a Braskem, o conceito de desenvol- vimento sustentável refere-se a questões econômicas, sociais e ambientais relacio- nadas às atividades da Empresa e de sua cadeia e inclui o compromisso ético com as gerações atuais e futuras, com o uso ra- cional dos recursos naturais e com a saúde do planeta. Esse compromisso permeia a estratégia e a atuação da Companhia. É extremamente importante para a Braskem minimizar os eventuais impactos negativos e maximizar os positivos provo- cados por suas atividades e, dessa forma, tornar-se parte da solução para uma vida melhor, por meio dos seus produtos, serviços e da sua atuação. Em decorrência dessa visão e a partir do entendimento das oportunidades de crescimento da Com- panhia para os próximos anos, a Braskem deﬁniu dez macro-objetivos estratégicos para a sustentabilidade, que cobrem os temas materiais para a Empresa e suas partes interessadas. A matriz de temas materiais pode ser vista a seguir. High Level of Impact Braskem Medium HIGH 22 6 18 Low Irrelevant 16 3 11 21 9 19 7 1 5 2 4 8 28 23 25 17 20 24 26 27 29 13 10 ENVIRONMENTAL (1) Non-renewable resources (2) Water (3) Climate change and energy (4) Air (5) Waste (6) Transportation (7) Biodiversity (7) Biodiversity Mexico (8) Post-consumption (9) Suppliers – environmental management (10) Product development – environmental 12 11b 7a SOCIAL 14 15 Irrelevant Low Medium High Level degree to stakeholders MATERIALITY CRITICAL HIGH MODERATE LOW BRASKEM'S LEVEL OF CONTROL OR INFLUENCE UPON HE ASPECT MINIMUM LOW MEDIUM STRONG MATERIAL ASPECTS (11) Jobs (11b) Jobs - USA (12) Freedom of association (13) Health and Safety (14) Training and career (15) Equal opportunities (16) Property security (17) Safe use of products (18) Grievance mechanisms (19) Suppliers – social management ECONOMY AND GOVERNANCE (20) Economic Performance (21) Social investments and community (22) Public assistance (23) Local suppliers (24) Free competition (25) Corruption (26) Public policies (27) Product development - social (28) Labor from Local Communities (29) Transparency and integrity Para saber mais sobre o processo de consulta e análise realizado para identiﬁcar os temas materiais à Empresa e às suas partes interessadas, consulte http://www.braskem.com.br/site.aspx/materialidadesustentabilidade Aspect 4 - Air was considered material given the level of importance assigned by local communities and the potential impact of the Company. It was not associated with any macro objective, since it is considered highly regulated and well managed by the Company, with no actual impact being observed. To learn about the Company's performance, see Social and Environmental Management, Environment, Energy, and Climate Change To learn more about the process of consultation and analysis that identified the material topics for the Company and its stakeholders, see: Braskem> Materiality Matrix 32 2015 | Braskem | Annual ReportMAPPING OF STAKEHOLDERS Category of stakeholders interacting with Braskem Means of engagement Meetings, Reputation Survey* Political/strategic: Trade unions, regulatory agencies, professional associations, executive branch, legislative branch, public prosecutor's office, environmental agencies, public/regional opinion, ngos, Financial market analysts, auditors Influenciators Industry: Competitors, trade associations Industry trade shows, Participation in sector meetings Media: Coordinators, specialized media, general media, social networks/virtual environment Academia: Research centers, schools, researchers, Universities, technical schools Press Releases, Meetings, Interviews, Reputation Survey* Meetings, Reputation Survey*, Projects in partnership Suppliers: Raw materials, Petrobras, indirect materials, services, technology Meetings, E-Mails, Internet Channel with exclusive access, Reputation Survey* Financial market: Controlling shareholder, minority shareholder, board of directors, financial institutions, debt provider, banks Members: Members, third parties Communities: Residents, local leadership, partners initiatives Society: ABC 18+/ national, families of members Clients: Clients cf clients of end consumers distributor, Unib, Unipol, Unvin, international Meetings, Website “Investor Relations”, Reports, Video conference on results E-Mails, Internal Campaigns, Newsletters, Safety Dialogues, Recognition Award, Intranet, Reputation Survey*, Climate Survey (every two years), Communication Survey (every two years) Projects, Direct Relationships with Local Representatives from the Institutional Relations Area, Reputation Survey* Reputation Survey* Meetings, Visits to Facilities, Technical and Relationship Events, Industry Trade Shows, Sponsorship, Internet channel with exclusive access, Sales support service by account managers, Technical development agenda, Reputation Survey* Facilitators Impacting Beneficiaries *The reputation survey has been carried out each year since 2009, with the support of the Reputation Institute. The program relies on an Image and Reputation Management Committee, with participation of representatives of all Company areas, responsible for discussing the main risks and opportunities in the production process and the strengthening of the trust of Braskem's stakeholders. 33 2015 | Braskem | Annual ReportMacro-objectives for sustainable development Safety Economic and financial results Strengthening of practices Development of solutions Local development Post-consumption Renewable resources Water efficiency Energy efficiency Climate change Increasingly sustainable Operations and resources Increasingly sustainable Product portfolio Solutions for an increasingly sustainable life PILLARS OF BRASKEM'S SUSTAINABILITY STRATEGY SAFETY: be recognized as a reference in chemical, occupational and process safety, in the global chemical industry. ECONOMIC AND FINANCIAL RESULTS: be among the three largest producers of thermoplastic resins in the world, guaranteeing profitability that supports the continuity of the business, maintaining “Investment Grade” classification in the 3 main international agencies. POST-CONSUMPTION: be recognized as an important agent that contributes to the recycling of plastics RENEWABLE RESOURCES: be recognized as a leader in the production of chemicals and thermoplastic resins from renewable raw materials, continuing to be the world's largest producer of thermoplastic resins from renewable sources. WATER EFFICIENCY: continue as a reference in the use of water resources in the global chemical industry. CLIMATE CHANGES: be among the best large chemical companies in the world in terms of greenhouse gas emissions (GHG) intensity and a major player in carbon sequestration, as a result of the use of renewable raw materials. ENERGY EFFICIENCY: be among the world’s best large chemical companies in terms of energy consumption intensity and a major user of renewable energy. LOCAL DEVELOPMENT: be recognized by the communities surrounding our operational sites and by society in general for our contribution to the improvement of human development, as shown by achieving the reputation level of “excellent” in the Citizenship Dimension of our Reputation Survey (RepTrakTM Pulse). DEVELOPMENT OF SOLUTIONS: be recognized as a company that supports its Clients in the development of environmental and social solutions; contribute to the perception of plastic as a solution to sustainable development due to its potential to improve people’s lives. STRENGTHENING OF PRACTICES: be recognized as a corporate leader in Brazil, as well as a global leader in the chemical industry, for our contribution to sustainable development. For more information about each macro-objective and its main actions carried out in 2015 and planned until 2020. Braskem > Goals and Initiatives Learn more about Braskem’s Macro-objectives for sustainable on page 145 34 2015 | Braskem | Annual ReportParis Agreement The global debate on climate change emissions, to a continuous investment gained a historical milestone in in product development with a lower 2015 with the 21st edition of the carbon footprint and of products from UN Climate Conference in Paris, renewable sources. France. The international event, which brought together the heads of To strengthen the global movement state of the world's main economies, for mitigating impacts arising from Sustainable Development Summit culminated in a historical agreement climate change, Braskem also joined The Sustainable Development that will guide the public and private the "Paris Pledge." actions in the coming years. Goals (SDG), a document establishing 17 global goals Braskem was also featured among to be reached by 2030, were As one of the signatories to the the companies that participated in the established between 2012 and Open Letter of global CEOs directed Carbon Disclosure Program (CDP), an 2015 with a broad consultation toward the world leaders present at international non-profit organization process. Braskem participated the COP-21, Braskem is among the seeking to foster management and in this process as a Member multinational participants of Caring pricing of greenhouse gases. The of the Brazilian the Global for Climate Business Summit, of the Company earned the highest possible Compact Committee, working Global Compact, the world's largest score (on a scale of 0 to 100) regarding actively in the Sustainable coalition of companies dedicated transparency when accounting for Development Summit. to developing solutions capable emissions data, in addition to an of accelerating the transition to a A- score (the best among Brazilian more sustainable economic model. companies) regarding performance At the event, the Company ratified (on a scale of E to A+). its commitment to reducing CO2 35 2015 | Braskem | Annual ReportFINANCIAL PERFORMANCE G4•EC1 | G4•EC2 | G4•9 Good operational performance, record exports, operations abroad, and international spreads guaranteed Braskem's good results in a year of an unfavorable Brazilian economic scenario. Record operations The global economic scenario In US dollars, the result reached and the context of the economic US$ 2.8 billion, advancing 17% Profit recovery of the United States compared to 2014. The Company's and Europe, responsible for corporate leveraging, measured in boosting the global demand for US dollars by the Net Debt/EBITDA, petrochemical products, raised the was 1.91x reaching the lowest level Consolidated net profit of R$ 2.89 billion in 2015. Company's financial performance in in nine years, representing a 26% the Brazilian real and the dollar in drop compared to the same period Growth 2015 to one of the highest levels in the previous year. The consolidated its history. net profit in 2015 reached R$ 2.89 billion, of which R$ 3.14 billion were During the year, Braskem reached for the Company's Shareholders, a record EBTIDA amount of R$ referring to parent Company profit. 9.37 billion accumulated in 2015, a The Company's equity closed the 67% growth over the previous year. year at R$59,961,294.00. In 2015, Braskem registered a record EBITDA in the real and the dollar, reaching R$9.37 billion and US$ 2.8 billion – a 67% growth compared to the previous year. 37 2015 | Braskem | Annual ReportAprimore Project In line with the responsible a cost reduction of R$ 400 million in the implementation of 82 management of financial assets, per year on a recurring basis initiatives previously designed during the year 2015, Braskem by 2017, without compromising and approved by the Company in implemented the Productivity investments in asset maintenance 2014. In 2015, the implemented and Efficiency Increase Project and safety. The plan involves actions reached recurring gains (Aprimore Project) which foresees over 200 Braskem Team Members of R$ 156 million. The low price of oil in the partially, the average depreciation year was 98%, recording 1.97 international market broadened of the Brazilian real of 42% over million tons of production, the sales margin for petrochemical the year. The depreciation of the up 6 p.p. compared to 2014. products, which was one of the exchange rate had a positive effect, The general operating result main drivers for the Company's since 100% of the Company's abroad was not higher only due strong cash generation in 2015. revenue is directly or indirectly to the overall shutdown of the In addition, positive results pegged to only 80% of the costs. Schkopau plant in Germany. It were driven by good operational was a scheduled maintenance performance, especially in the In the United States and Europe, associated with a plant control United States and Europe for a the average rate of operations system change. larger volume of exports and, in the industrial units for the 9% 17% 22% Net revenue in 20157 Brazilian Market Brazilian Exports USA and Europe Resale 52% 7 Source: http://www.braskem-ri.com.br/annual-reports 38 2015 | Braskem | Annual ReportDetachment from the Brazilian crisis Figures from 2015 show emerging countries, especially market to reach 4.927 million Braskem's detachment from the the real. The sharp deceleration tons, a drop of 7.6% compared Brazilian economic downturn due of important sectors in the to 2014. In this context, in 2015, to the growing maturity of the Brazilian economy, such as Braskem sold a volume of 3.362 Company's global operations. The services, construction, and million tons in Brazil, 6% less than Brazilian economic scenario was infrastructure, also effected the in 2014. Such a situation caused more unfavorable than initially labor market, reducing income, Braskem to pursue, over the predicted, aggravated by a lower and consequently, affecting year, opportunities in the foreign than expected growth in China family consumption and levels market, in order to maintain (6.9%, the lowest in 25 years), of investment. high rates of operation at its the drop in the international Brazilian plants. price of commodities, and the The scenario reduced demand, depreciation of currency in causing the Brazilian resins Strengthening exports In 2015, the Company made R$22.7 billion year to date, of progress in its organizational which R$ 10.2 billion were from improvements aimed at exports. With the most important developing processes linked to operations in the United States optimizing the flow of exports. and Europe, and the beginning These new operations had the of the project in Mexico, the purpose of more effectively raising Company has demonstrated a industrial operations in Brazil to decreasing dependency on the the level of foreign operations. Brazilian market, consolidating Thus, revenue from the foreign the growth of Braskem's global market represented 43% of operations. Braskem's total revenue, reaching High credit notes and shares REVENUE Revenue from the foreign market represented 43% of Braskem's total revenue With financial advantage at the investment grade by the three sovereign rating, and with the the lowest level in nine years, global agencies, and for the first possibility of being two steps Braskem managed to secure time ranked above the sovereign above the sovereign rating. investment grade from the main risk by Standard & Poor's, Fitch According to the agency, this risk classification agencies - and Moody's. Standard & Poor's, Fitch and confirmation reflects the strong position of the Company's Moody's – despite the downgrade In December, Standard & Poor's liquidity, solid cash generation, of the Country's sovereign risk reaffirmed Braskem's rating in and geographical diversification. rating in 2015. The Company kept “BBB” (global scale), above the 39 2015 | Braskem | Annual ReportBraskem guarantees competitiveness in energy consumption in the Northeast In 2015, Braskem and other of regulated electricity supply, Government also makes room for electro-intensive companies Braskem obtained an extension on the growth of renewable energy in the Northeast managed an the electricity purchase contracts. sources in the region. Braskem, important supply guarantee for Thus, Braskem's main units at along with other electro-intensive its operations in the Northeast the petrochemical complex in companies, will contribute to by extending electricity contracts Camaçari, Bahia, and in Alagoas, strengthening the Northeast with Companhia Hidrelétrica do will have a supply available and Energy Fund, for the expansion São Francisco (Chesf). Beginning guaranteed on competitive terms of the renewable energy matrix with the issue of Provisional until 2037. Measure No. 677/2015 converted in the region, guaranteeing a long-term structured solution for into Law 13,182/2015 and The extension agreement regional and national industrial based on a history of decades with Chesf and the Federal development. The electricity supply agreement with Chesf is valid until 2037 and includes the creation of a fund for investing in energy generation primarily in the Northeast Renewal of the naphtha supply contract At the end of 2015, Braskem of a volume of seven million tons uncertainties in the political managed to end a long impasse of naphtha annually at a price and economic environment with Petrobras concerning of 102.1% of the international surrounding the industry, and the supply of naphtha, the reference, ARA8. thus, avoiding shutdowns of raw material for producing petrochemical plants. thermoplastic resins. The Despite the fact that the new negotiation, which lasted over contract does not fully reflect In order to maintain competitive two years and required contract the conditions necessary to conditions, the contract with amendments to enable the ensure the competitiveness of Petrobras provides renegotiation continuity of petrochemical the chemical and petrochemical rights to both parties if certain operations, came to its end with industry, Braskem considered market conditions change after the signing of a new contract with the signing of the agreement an the third year of the contract. a term of five years for the supply important way of reducing serious 8 Term used for prices practiced in the Amsterdam, Rotterdam, and Antwerp markets Allegations In early March 2015, Braskem In view of such claims, the Exchange Commission-SEC and learned, in the context of Company proactively initiated an Department of Justice-DoJ) statements made in legal internal investigation procedure. and the Brazilian Securities proceedings against third Law firms were hired in Brazil and Exchange Commission, parties, of claims of alleged and in the United States, in particular to provide improper payments to favor with recognized experience in information and provide the Company in raw material similar cases, to conduct the documents required by these contracts executed with process. Since then, Braskem bodies within the competence of Petrobras between 2006 has had frequent contact with the DoJ and SEC. and 2012. U.S. authorities (Securities and To learn more, visit Braskem > Investor Relations 41 2015 | Braskem | Annual ReportOperating results by segment Basic petrochemicals In 2015, although influenced competitive crackers based on showed growth compared to by the incident in central São naphtha in the international the previous year, especially Paulo (learn more about the market due to the drop in the in the production of propylene incident on page 64) and raw price of oil and naphtha, and and paraxylene influenced by material supply problems at the the Company's ability to export the high average rate of the Rio de Janeiro site, ethylene the surplus not absorbed in the use of the crackers. In this production reached 3.4 million domestic market. context, sales of ethylene/ tons, which was 4% above 2014. propylene showed 1% growth. The main factors were good The production volume of In turn, BTX and butadiene operating performance, more main basic petrochemicals also sales in 2015 grew by 2%. Production 2015 2014 Total Sales 2015 2014 Ethylene 3,357,078 3,237,886 Ethylene/ Propylene 965,154 957,123 Propylene 1,389,796 1,306,636 Butadiene 385,514 378,853 Butadiene 389,272 374,827 BTX* 1.037,307 1,012,091 BTX* 1,031,280 1,013,873 BTX: benzene, toluene, para-xylene and ortho-xylene. Sales of ethylene and propeline are significantly lower than production because part of these products is intended for Braskem's second generation units. 42 2015 | Braskem | Annual ReportPolyolefins (PE and PP) Heavily impacted by the weak 4.2 million tons, which was market, decreased 3%, totaling performance of Brazilian 4% above that recorded in 2,833,000 tons. The market economic activity in 2015, the 2014, proving high rates of use share recorded in 2015 was estimated demand for polyolefins recorded over the year and the 73%, a gain of 2 p.p. compared (PE and PP) was approximately Company's capacity to export to 2014. Exports, in turn, totaled 3.9 million tons, a decrease of the volume not absorbed by 1,307,000 tons, an increase of 5% compared to 2014. In 2015, the domestic market. Braskem's 22% compared to 2014. production volume reached polyolefins sales, in the domestic 2015 x 2014 (%) Sales Domestic Market Sales Foreign Market Production (22) (4) (3) PE + PP Vinyls In 2015, the approximate crisis. PVC production volume in competitive export opportunities, Brazilian demand for PVC was 2015 was 542,000 tons. Braskem began to export PVC. about 1,046,000 tons, a decrease The total volume of the resin sold of 16% compared to the previous During this period, Braskem sales in the foreign market was 65,000 year. The infrastructure and civil in the domestic market totaled tons. A total of 436,000 tons of construction sectors, major resin 529,000 tons, a decrease of sodium hydroxide were produced consumer markets, were those 20% compared to 2014, and the in 2015 and the Company's sales that most suffered from the market share was 51%. In 2015, totaled 435,000 tons in the effects of the year's economic by taking advantage of more Brazilian market. 2015 x 2014 (%) Sales Domestic Market Production (20) (5) (15) (3) PVC Liquid Soda 43 2015 | Braskem | Annual ReportThe United States and Europe In 2015, the North-American PP in Europe grew 5.18% during receiving raw materials brought the demand for polypropylene the year. Industrial productivity volume of PP production in 2015 (PP) showed 5.5% growth in improvement actions, such as to a growth of 6% compared to comparison to 2014. The good identifying the products most the previous year. Sales volume performance is a reflection of the adequate for each plant, optimizing in 2015 was 6% higher, following increase in competitiveness due the level of production of each the increased availability and the to the reduced price of propylene product (faster production of these improved economy, especially in (raw material for PP production) as products), and initiatives towards the United States. a result of oversupply. Demand for reducing logistical bottlenecks when Sales 2015 2014 VAR. 1,973,274 1,862,560 6% Production 2015 2014 VAR. 1,967,028 1,855,676 6% PP PP Value Added Statement BRASKEM S/A (Values expressed in thousands of Reais) Consolidated Holding 2015 2014 2015 2014 Revenue 53,115,698 52,761,200 39,023,849 31,527,548 Gross sales of products and services 53,803,890 52,689,183 39,342,353 31,229,283 Other net (expenses) revenue -636,824 153,095 -272,015 376,346 Provision for doubtful debtors -51,368 -81,078 -46,489 -78,081 Inputs acquired from third parties -42,208,079 -45,412,436 -29,807,759 -26,984,572 Cost of goods and services sold -40,772,490 -43,912,319 -28,680,882 -17,151,231 Materials, energy, outsourced services and other -1,436,092 -1,503,512 -1,117,036 -9,836,363 Recovery (loss) of value of assets 503 3,395 -9,841 3,022 Gross value added 10,907,619 7,348,764 9,216,090 4,542,976 44 2015 | Braskem | Annual ReportDepreciation, amortization and depletion Net value added produced by the entity -2,114,929 -2,056,362 -1,774,973 -1,317,928 8,792,690 5,292,402 7,441,117 3,225,048 Value added received in transfer 1,703,502 359,861 3,948,130 1,566,965 Results of equity income 2,219 3,929 752,037 621,002 Financial income 1,701,027 355,221 3,196,009 945,580 Other 256 711 84 383 Total value added for distribution 10,496,192 5,652,263 11,389,247 4,792,013 Payroll 1,209,732 1,095,545 740,476 521,546 Direct remuneration 943,263 836,525 551,092 394,135 Benefits 204,766 196,911 129,871 85,102 Government Severance Indemnity Fund (FGTS) 61,703 62,109 59,513 42,309 Taxes, fees, and contributions 1,968,053 902,864 2,296,187 476,470 Taxes, fees, and contributions 1,668,930 522,134 1,500,585 172,160 Estaduais Municipais 276,024 363,551 784,988 295,334 23,099 17,179 10,614 -24 Remuneration of third-party capital Financial charges (includes exchange variation) 4,419,627 2,927,553 5,212,273 2,938,933 4,173,254 2,708,331 5,007,564 2,775,028 Lease 246,373 219,222 204,709 163,905 Remuneration of own capital 2,898,780 726,301 3,140,311 864,064 Net income for the period 3,140,311 864,064 3,140,311 864,064 Share of non-controlling shareholder in Braskem Idesa -241,531 -137,763 - - Value added distributed 10,496,192 5,652,263 11,389,247 4,792,013 For more information, visit Braskem > Investor Relations > Results 45 2015 | Braskem | Annual ReportGOVERNMENT G4•EC4 Braskem believes in ongoing dialogue between the government, civil society, and partners from the private sector as the best way to overcome the barriers hindering the Country's sustainable development. Therefore, the Company has expanded its institutional field of action, increasingly assuming the role of a citizen Company, responsible and motivated to propose solutions for the main challenges concerning the business sector. Braskem includes entities with a specific scope of activity from different links on the petrochemical industry's production chain and the industry in general: • • concerning Brazilian Industry Chemical Association (ABIQUIM): discusses topics the first and second generation on the petrochemical chain; Industry Plastic Brazilian Association (Abiplast): focuses on the manufacturing industry; concerning topics • National Confederation of Industry (CNI): promotes debate forums about the entire industrial sector; Council Business Brazilian for Sustainable Development (CEBDS), among others, in the of macro-economic context policies. • It is important to highlight the performance of Braskem with other national entities such as the Ethos Institute, GVces, CEMPRE and Plastivida, and international organizations such as ICCA, ACC, information among others. More can be about found Voluntary the Commitments section. these entities in incentive program Another that had been very well received by the production sector mid-2014, but suffered a setback in 2015, was Reintegra (The Special Tax Reintegration Regime for Exporting Companies), which a percentage of revenue from foreign sales to exporters of manufactured goods and compensates them for indirect taxes. returns Braskem in actions continued In 2015, participating toward defending the chemical and plastic production chain, prioritizing the Country's concerning challenges logistics, infrastructure, and energy, topics linked to industrial policy. The Special Chemical Industry Regime (Reiq), an industry claim approved by the Brazilian Federal Government in 2013, remained on the agenda as one of the pillars of the industry's competitiveness recovery project. It provides exemption from PIS- Confins when acquiring raw materials for first and second-generation petrochemicals, benefitting around 50 companies, Braskem among them. Thus, throughout the year, the Company prioritized the topic, focusing fully maintaining the measure for years to come. on Created in 2011 as a temporary mechanism, Reintegra had a rate of 3%. Beginning in 2014, by decision of the Federal Government, the regime was permanently implemented with variable rates that could vary up to 5% of the revenue of exporting companies providing evidence of their export activity. the change announced This rate of credit return, effective from March 1, 2015 to December 31, 2016, should be at 1%. However, with in September 2015, the rate in effect changed from 1% to 0.1%, valid from December 1, 2015 until December 31, 2016. According to the decree, beginning January 2017, Reintegra will rise to 2%, and again to 3% in January 2018. R$/thousand 2013 2014 2015 Total tax incentives / credits1 280.650 125.734 173.887 • PRODESIN - ICMS • REINTEGRA Grants for investments, research, and other relevant types of concessions2 FINEP FINEP Award ECAs (financial aid from export credit agencies)3 50.908 60.033 71.614 229.742 65.701 102.273 6.518 1.623 6.518 1.550 468.000 1.623 - - - - - - 1 –Tax incentives/credits: federal tax refund by the REINTEGRA program and ICMS tax incentives, conceded by the government of Alagoas, through the Integrated Development Program for the State of Alagoas – Prodesin. 2 –Grants for investments, research, and development: FINEP awards and financing for innovation projects. 3 – ECAs financial aid [export credit agencies]: risk insurance transaction made with Nippon Export and Investment Insurance (NEXI – Japanese agency) for investment in maintenance and the butadiene project. 46 2015 | Braskem | Annual ReportPEOPLE AND PROCESSES Braskem is committed to practicing responsible management with all its stakeholders. In this way, the Company works to ensure the professional development of its Team Members, without ignoring the strictest safety and protection standards for people and the environment. To Braskem, investing in people From the operational point origins, waste, means of is fundamental to ensuring of view, risks inherent to disposal, equipment, and most the growth and perpetuity of petrochemical industry importantly, protecting the the business. Operating in production also require intense people who made the whole an industry subject to global focus on personnel management process work. To Braskem, safety trends, the Company needs high in order to ensure safety. It is is a primary concern and treated performance teams, capable a topic that goes beyond paying as the most important macro- of anticipating challenges, attention to the different stages objective related to sustainable maximizing opportunities, and of the production process, development. mitigating risks. and includes the products, TEAM MEMBERS G4•LA12 | G4•10 | G4•LA1 | GLOBAL COMPACT • PRINCIPLE 6 People are at the center of the Company's personnel At the end of 2015, Braskem had Braskem's growth strategy. In line management seeks to strengthen 7,995 Team Members. Of that with TEO values, the Company the belief in the chemical and total, 6,4019 worked at industrial believes in the entrepreneurial petrochemical industry as a units and offices located in five spirit of its professionals and creator of sustainable solutions Brazilian states, 680 in the United the transformative potential for improving people's lives States, 701 in Mexico, 174 in of education as primary and more effectively attracting, Germany, and 39 in international sources of the evolution of its integrating, and developing its commercial offices10. business. Focused on growth, Team Members. 9 Including quantiQ, Brazilian distributor of chemical and petrochemical products directly and indirectly 100% controlled by Braskem. 10 Since they constitute a small portion of the Braskem workforce – 39 Team Members – the Company opted to insert simplified data, as follows: in all, Braskem's International Offices have one Team Member at the operational level, 27 administrators, and 11 Leaders. The majority (30 professionals) is between 31 and 50 years old, nine are under 30, and 23 of them are men and 16 women. 48 2015 | Braskem | Annual ReportTEAM MEMBERS BY GENDER 1 Men Brazil2 United States Germany Mexico Total 4,995 (78%) 556 (82%) 113 (65%) 552 (79%) 6,239 (78%) TEAM MEMBERS BY JOB CATEGORY 3 Operational/technical Brazil United States Germany Mexico Total Administrative Brazil United States Germany Mexico Total Leaders Brazil United States Germany Mexico Total Men 3,935 (89%) 267 (92%) 68 (77%) 406 (87%) 4,677 (89%) Men 598 (43%) 225 (74%) 31 (46%) 78 (52%) 945 (49%) Men 462 (76%) 64 (75%) 14 (78%) 68 (83%) 617 (77%) Women 1,406 (22%) 124 (18%) 61 (35%) 149 (21%) 1,756 (22%) Women 475 (11%) 22 (8%) 20 (23%) 63 (13%) 580 (11%) Women 788 (57%) 81 (26%) 37 (54%) 72 (48%) 992 (51%) Women 143 (24%) 21 (25%) 4 (22%) 14 (17%) 184 (23%) BRASKEM GOVERNANCE BODIES Age bracket Men <=30 years old 0 (0%) 31-50 years old 9 (69%) >=51 years old 16 (100%) Total 25 (86%) Women 0 (0%) 4 (31%) 0 (0%) 4 (14%) Total 0 13 16 29 (1)There are only 29 Team Members under temporary contracts. The others are hired for an undetermined amount of time. The majority work full time; only 11 work part-time. (2) 98.8% of Team Members in Brazil are covered by collective bargaining agreements, 41.8% in Mexico, and 9.7% in the USA. (3) The following positions are included in each work category: Operational/technical: Team Members who operate the plants, engineers, and chemists; Administrative: Team Members working in the business departments, such as: Human Resources, Finance, Institutional Relations, Legal, etc.; Leaders: coordinators and above who have subordinates. Including quantiQ, Brazilian distributor of chemical and petrochemical products controlled by Braskem. Learn more about Braskem’s Team Members on pages 139 to 142 49 2015 | Braskem | Annual ReportManagement connected to local communities G4•EC6 Braskem understands the importance learn about all its operations, Braskem also has teams dedicated to of having local Leaders to ensure valuing transfers to other units Institutional Relations that maintain good comprehension of the needs as a way of disseminating best an ongoing open dialogue with these of the Community, whenever practices and increasing Company communities, not only monitoring possible, and seeks to hire local cohesion. To ensure operations are concerns and potential negative people. The Company also believes in tune with reality and the needs impact, but also working on projects that it is important that its Leaders of the communities around them, focused on human development. TEAM MEMBERS OF SENIOR MANAGEMENT FROM LOCAL COMMUNITIES Brazil United States Germany Mexico International offices Total geral 52% Not available 63% 21% 38% 49% Note: Leaders born on the same state in which they are currently working. Recruitment and selection Braskem maintains a set of generating 25,500 registrations. the training program aims to programs aimed towards those Over the year, 234 college form talent that may accompany who chose the Company as the students joined the Company, the growth of the business. The place to take the first steps in which closed 2015 with 321 active Associate Program in the United their professional lives. In Brazil, college interns. The Young Partner States worked on the development carried out in partnership with program also included 41 trainees of nine students from the classes the Odebrecht Organization in the Company's workforce, of 2014 and 2015 and hired 10 since 2014, Jovem Parceiro - JP meeting the need for new talent in new people for the class of 2016. (Young Partner) is an integrated several areas. program for interns and trainees Braskem remains committed that guarantees exclusivity to Also focusing on the early career, to investing in training interns for trainee positions, the Youth Program in Mexico specialized technical labor for strengthening the importance (Programa de Jóvenes) included the petrochemical industry, and value of the internship stage. 69 college interns and 10 trainees supporting the excellence of its In 2015, over 50,000 students who had the opportunity to learn operations and its growth strategy, contacted the Company, resulting more about Braskem Idesa. developing its local communities, from interaction with learning Composed of 16 hours of training and strengthening the production institutions and students bodies, and 15 hours of coaching sessions, chain. In 2015, Braskem operated 50 2015 | Braskem | Annual Reportwith the Brazilian Federal of 560 openings were created stage carried out by SENAI, Government through PRONATEC in specialized technical training practical stages are carried out (National Program for Access courses in order to strengthen through internships at Braskem, to Technical Education and the chain of Suppliers and service and the course lasts a total of Employment). The partnership providers, and 270 openings in the approximately a year and a half. guaranteed the government Operator Training Program, aimed During the past three years, 35% investment of R$ 2.4 million in the at people who would like to begin of the 1,058 people who joined the theoretical stage, carried out by an industrial career. program were hired by Braskem, SENAI, of technical courses offered supporting the sustainable growth to the Company's neighboring The Operator Training Program has of the business through developing communities. In 2015, a total three stages. After the theoretical qualified local labor. Local development in Brazil In addition to promoting the formation of new professionals in through its communities neighboring PRONATEC Braskem plants, industrial strengthened relationship its with local technical education visits, institutions through lectures, and participating in trade fairs, aiming to attract people to the Young Operator and Young Technician programs. For more information, visit Braskem > Careers New hires and terminations G4•LA1 | GLOBAL COMPACT • PRINCIPLE 6 In 2015, Braskem hired 562 The overall hiring rate was 7%, The primary metric followed by people in the countries where which was 9.2% for women the Company for its management it operates. Considering the (opposed to 13.6% in 2014), is the rate of voluntary termination of 685 professionals, and 6.3% for men (a drop termination, which globally was the Company reduced its compared to the 8.6% from the 2.4%. In Brazil, the 1.9% result workforce by 121 people, the previous year). The decrease in in 2015 followed the downward majority of which due to the the entrance rate was also due trend of recent years. The main Aprimore Project carried out over to decelerated hiring in Mexico, reasons given by members for the year. The overall termination which in 2015 closed its staff their leaving were to seek new rate was 8.6%, which was 10.8% of Team Members necessary for challenges (37%) and personal for women (10.5% in 2014), and starting the operation. reasons (35%). 7.9% for men (8.9% in 2014). BRASKEM VOLUNTARY TERMINATION RATE 2015 COUNTRY Brazil United States Germany Mexico Total MEN 1.5% 6.1% 1.8% 2.2% WOMEN OVERALL 3.4% 6.5% 4.9% 2.7% 1.9% 6.2% 2.9% 2.3% 2.0% 3.6% 2.4% 51 2015 | Braskem | Annual ReportTraining and development Braskem's educational programs of challenges with growing training, which may include focus on the development of complexity, not necessarily technical, undergraduate, and teams and are aligned with the characterized as a rise to graduate courses), and On- Company's business needs and hierarchical positions. the-job Education, which will strategic objectives. There is be developed over the year. In specific planning for different All Team Members have an 2015, the Company invested moments in the Team Members' Individual Development Plan approximately R$ 19 million in careers, and the process is in which Education for Work several training actions in its understood as a succession actions are specified (formal countries of operation. Some of Braskem's main training programs include: Leadership Development Leadership Workshop for Culture and Integration Programs (Global) Sustainable Development Program (Braskem America Braskem works with Leadership (Global) and Europe) Trails, a set of structured programs trains Team Members on the training new Team Members in according to the Leader's stage topic and seeks to engage them company culture and values. In of development. In 2015, a total in implementing the Company's 2015, there were four sessions of 147 Leaders were trained in sustainability strategy. With 90% of and 95 participants in the United programs focusing on the first Leaders in Brazil trained in 2014, the States, and three sessions with 33 two stages of leadership in Brazil, focus in 2015 was to reach the same participants in Europe. the United States, Germany, and level of coverage in Mexico and the Mexico. In addition, in the United United States, thus training 104 Team States and Europe, the programs Members in the United States, and with a shorter duration were 80 in Mexico. In Brazil, customized expanded, such as the Leader's workshops were held for the Services Forum, providing more frequent and Personnel teams, involving 47 opportunities for Leaders to share people. their experiences. Technical Skill Entrepreneurs Development Development (Brazil) Program seeks to strengthen and enhance carried out in Brazil in partnership the technical skills of its industrial with other businesses from the teams. In 2015, over 2,090 Team Odebrecht Organization, the Members were involved in training program enables participants from actions about industrial processes several companies to interact and and equipment. These actions share their knowledge. In 2015, included 41 technical seminars the program trained six new with 497 participating operators, professionals. 117 forums with over 1,000 participants, as well as training for Company Integration and PDI Program (Braskem Idesa, Mexico) 270 hours of training for 142 new Team Members. In addition, about 21,300 hours were dedicated to PDIs (Individual Development Plans) training on and for the job, focused on technical knowledge and developing skills that Team Members need to meet their goals. Leadership Training Program (Brazil) focused on labor and union issues, action and prevention in conflict management, and legal aspects. Trained 323 Team Members 429 Team Members in a portfolio of in 2015. online courses with 24 topics. 52 2015 | Braskem | Annual ReportPerformance and career management All Braskem Team Members have an Action Plan built with his or her Leader with goals to be developed and reached throughout the year. Composed of the Planning, Agreement, Monitoring, Evaluation, and Final Assessment stages, the evolution of results may be reviewed and renegotiated during the process, as long as the final assessment takes place as a dialogue between the Leader and the Led. Reaching the goals and their alignment with TEO values determine the professional's variable remuneration. This practice, combined with the Life and Career Plan, also developed in partnership with the Leader, encourages the Team Member to take on increasingly more challenging Action Plans, promoting his or her growth, career development, and perpetuity of the business. Braskem: one of the best companies to work for In 2015, Braskem was reference in the selection and recognized in Brazil, the recruitment of professionals at United States and Mexico by the onset of their career. In the awards focused on personnel United States, the Company management. In Brazil, the received the Top Work Places Company was listed in the award, issued by Workplace ranking “The Best Companies Dynamics, and in Mexico, to Begin a Career” in the Você Braskem Idesa ranked fifth on S/A guide, organized by the the “Empresa de los Sueños Institute of Administration de los Jóvenes”, by Cia. de Foundation (FIA-USP) and Talentos. Cia. de Talentos, a company of 53 2015 | Braskem | Annual ReportRemuneration G4•EC5 | GLOBAL COMPACT • PRINCIPLE 6 Braskem Team Members receive Member's job performance. The Braskem contributes to fixed compensation, benefits, remuneration strategy is linked to generating high quality jobs for and variable compensation the following assumptions: the growth and development pegged to the Company's results • Equality: compensates of the communities where it and meeting goals defined in proportionally, according to operates. In the following chart, the individual Action Plans. The skills, professional training, see the comparison between Company values diversity and and impact on results. the entry salary according to does not tolerate any type of • Competitiveness: meeting Company policy, and minimum discrimination based on sex, market standards. wage in the locations where the gender identification, sexual • Effectiveness: cost Company operates. orientation, race, marital status, effectiveness for the family structure, physical or Company. mental condition, nationality, • Sustainability: commitment social class, age, or other to business continuity. aspects not related to the Team COMPARATIVE DATA BETWEEN THE LOWEST ENTRY SALARY AND LOCAL MINIMUM WAGE11 BRAZIL (Braskem only) QUANTIQ UNITED STATES GERMANY MEXICO SP RJ BA AL RS 1.7 2.2 1.6 1.5 1.8 1.1 2.9 2.0 3.6 11 The lowest salary offered to a Member is based on Braskem's salary table, not reported by gender because there are no differences; (2) Brazil's minimum wage is the minimum for the category according to the company's union agreement; (3) the minimum wage in the United States, Germany, and Mexico is the national minimum wage; historical data from Germany are not shown because until 2015 there was no minimum wage. Destaque Award In order to disseminate which were: Innovation, first in the Innovation category, knowledge and recognize Young Members/Associates, with the project “Innovation work carried out by its Team Environment, Community Bringing Productivity to Brazilian Members, Braskem participates Relations, Knowledge Reuse, Citriculture,” developed by Team in the Odebrecht Destaque Occupational Health and Safety. Members from the Polyolefins (Highlight) Award, issued by Unit (UNPOL). The project the organization since 1992. In In 2015, the Image category was combined the use of plastic in 2015, a total of 822 projects created, which seeks to share agriculture to develop roots were registered, 338 from projects that positively affect the and enhance plant growth. The Braskem (41%). Registrations Odebrecht brand in the eyes of result showed a 50% increase were carried out by category, its stakeholders. Braskem ranked in productivity. 54 2015 | Braskem | Annual ReportDiversity GLOBAL COMPACT • PRINCIPLE 6 As part of its commitment to On the career development pillar, developed initiatives to include the promotion and protection the Company developed the women in the recruitment and of human rights in its business, Braskem Women's Forum. The selection process, leadership Braskem understands fostering initiative included the participation training and development, social gender equality as an issue of of 350 Team Members from every and economic development great importance and assumes its region in Brazil that met with projects in local communities, and responsibility to work proactively female Learders for a moment carrying out awareness actions based on the following beliefs: of reflection and inspiration about sexual violence against • It is necessary to invest men and women when seeking engaging Team Members and about career and challenges for women, and breast cancer, in an environment where balance between their personal the Community. women have access to and professional lives. job opportunities where In the United States, the Company they may develop, as a In addition, two internal surveys created BAWI – Braskem America support structure allowing were carried out in Brazil: a Women's Initiative, which is everyone to take on multiple survey of all Team Members committed to supporting the responsibilities. who had been pregnant, in advancement and development of • Valuing gender diversity is order to better understand their Team Members, aiming for a more not only enriching to the needs, and a survey of working balanced distribution of gender work environment, but also conditions for women at the in the Company's operations. essential for the growth, industrial plants. The two surveys Dialogue sessions were created survival, and perpetuity of generated input for defining -Lunch&Learns and Leader Panel the business. actions such as developing a – to encourage the debate about guide to the Company´s policies challenges and opportunities. Based on these beliefs, in 2015, and practices regarding paternity BAWI will promote education, Braskem began the Women and maternity, the structure of training, and enrichment of at Braskem Program, the first milk pumping rooms, the creation knowledge, aiming to accelerate front in the Diversity Program. of exclusive parking spaces for women's advancement to Actions developed by the pregnant women at all units, leadership positions, break program reaffirm the Company's adapting operating uniforms barriers, and promote gender commitment to gender equality for pregnant women, reforming equality. Engagement in the topic and women's empowerment. the women's bathrooms at the is also being carried out by the Structured on the fundamental Industrial Units, and extending Clinton Global Initiative, as well pillars for the work of women, the the fully paid maternity leave to as in partnership with Ellevate, a program discusses issues such 180 days for all pregnant women global network of 30,000 women as maternity and paternity leave, in the units in Brazil. in 82 countries, to connect its career development, health and In Mexico, Braskem Idesa, in members with more female well-being, and supply chain. partnership with the World Bank, professionals. Women's Empowerment Principles In 2015, Braskem took one the Women's Empowerment company in the direction of best more important step toward Principles. The UN Women practices in equality proposed increasing the visibility of its initiative and the Global by these two institutions. global commitment by signing Compact help to guide the 55 2015 | Braskem | Annual ReportHealth, Safety, and the Environment Excellence, efficiency, and a culture of risk prevention based ongoing development of on discipline and respect for improvements are terms that safety processes and procedures. define Health, Safety, and In order to maintain excellence Environment (HSE) management in its HSE procedures, Braskem at Braskem. This concern for carries out ongoing improvement people and the environment and advancement work in is part of the Company's work SEMPRE's five implementation assumptions, and therefore, since stages, in order to prevent and 2005, Braskem has operated in minimize risks and personal, an integrated manner through environmental, and material loss. SEMPRE – Integrated System The system is focused on work of Health, Safety, and the and process safety, logistics, the Environment – composed of 16 environment, chemical safety, Strategic Elements that mobilize health, occupational hygiene, and Leaders and teams to incorporate quality of life. 56 2015 | Braskem | Annual ReportEvolution in the implementation phases of SEMPRE (in %) Taking into consideration on previous results, levels of 2018 and places the majority of the unit's profile, as well as risk, and the improvement of plants at levels of performance its respective risks, Braskem performance in health, safety, that are safe and on the way to establishes annual goals for and environmental indicators. operational excellence. progress. Its evolution is based Today, this forecast goes until 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Diagnosis Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 2013 2014 2015 2016 2017 2018 SEMPRE Stages 3. Prevention of big losses 1. Construction of HSE bases 4. Performance assured in HSE 2. Prevention of personal losses 5. High performance in HSE As a way of guaranteeing the units were certified meeting the the industrial units, focusing on standardization of processes and planned standards. In addition, logistics operations. the implementation of the system 57% evolved compared to 2014. at all units across the world, annual Today, 80% of units are at stage Progress in the systemic audit processes were established 3 and 13% are at stage 4 and implementation of SEMPRE has that take the following points 7% at stages 1 and 2. It is worth been accompanied by the gradual into consideration: Strategic noting that all audits were carried and consistent improvement of Elements, SEMPRE Guidelines out in an integrated manner, results in Health, Safety, and and Procedures in alignment with including culture diagnostic, the Environment, as well as Quality and Productivity, and with an Integrated Management strengthening of operational Verifying Obstacles for process System, Atuação Responsável® discipline, leading by example, safety risk scenarios. (Responsible Operation), and and a leading position in Braskem+, and that all specific loss prevention in the global SEMPRE audits were carried audits for Braskem Terminals chemical industry. out 100%, and 88% of the were carried out separately from For more information, visit Braskem > Health, Safety, and the Environment 57 2015 | Braskem | Annual ReportInvestments and financial gain12 In 2015, R$ 114.43 million were invested in Health, Safety, and Environment projects. TOPIC AMOUNT INVESTED (R$ million) NUMBER OF PROJECTS DESCRIPTION AMOUNT INVESTED (R$ millions) PP5 Duque de Caxias (RJ): new aeration system for the 500t silo 10.28 MAIN PROJECTS Work safety 65.6 235 PP1 Triunfo (RS): new aeration system granulated silos Purchase of a Stuffing Box (Plenum) for the GI-4101A gas turbine exhaust PE 5 SLR RS: new tools and new lines for removing hexane from the flare Process safety 13.05 34 UNIB 2 (RS): Flame Sensor Installation in 46GV01 UNIB 3 (ABC): Elimination of risk scenario in C3 storage bullets (FB-24 A/B/C/D) CS 1 (AL): Installation of synthetic diaphragm UNIB 3 (ABC): Modification of the design of pumps with Benzene concentration UNIB 1 (BA): Installation of new closed circuit dials at benzene points 1% v/v UNIB 2 (RS): Purchase of new equipment for reducing emissions in TERG UNIB 3 (ABC): Technological improvements in the Effluent Treatment Unit PP 7 Neal (West Virginia, USA): Spent Scrubber Oil System 5.95 3.65 2.16 2.04 1.51 1.99 0.56 0.46 9.00 7.83 2.74 Health 4.65 22 Environment 31.13 39 HSE management also includes monitoring savings and costs avoided through improvement 2015, this work resulted in gains of approximately R$ 136.80 million in operations in Brazil, the United States, and Germany. projects developed by the area. In Safety TOPIC 2014 2015 Work Safety Process Safety Health Occupational Health Environment Waste generation Water consumption Effluent generation 0.6 7.9 37.1 53.7 1.9 0.6 -27.0 19 13.5 7.2 6.2 Energy consumption 307.6 116.8* GHG emissions Common impact Management 4.5 14.0 4.1 - 0.0 0.5 431.4 136.80 HSE Total *Built-Economy in energy consumption economy. 12 Most of these values is in addition to amounts invested in environmental protection reported in the indicator GRI G4 - EN31, where the focus is on waste disposal costs, emissions treatment, remediation costs and costs of prevention and environmental management. 58 2015 | Braskem | Annual Report SAFETY Safety is a non-negotiable for Sustainable Development process safety, but also the safe value at Braskem. Guaranteeing and is a fundamental point use of its products and waste safety in every phase of in relationships with all of its generation, since the Company the process is part of the stakeholders. To Braskem, safety produces hazardous waste. Company's macro-objectives includes not only work and Occupational Health and Safety G4•LA6 To guarantee the efficiency Braskem has not recorded any figure represents an improvement of its actions, especially at fatal accidents at the Company of 32% compared to the result its production units, Braskem for the past five years, and 63% in 2014 and exceeds the goal of has solid Health and Safety of the industrial plants have not 0.80 established for 2015, which management that involves all of recorded lost-time accidents for was already considered highly its managers, representatives over two years. The reduced challenging compared to the from operating teams, number of employee accidents chemical industry average in Brazil. commissions, and committees. represented an avoided cost Among the most important tools of R$ 600,000, based on costs Regarding accidents with greater is Behavioral Dialogue, which recommended by the NSC - severity (where the employee involves teams in discussions National Safety Council needed medical leave), there about how to minimize risk and was also great progress: the rate improve safety procedures. In With an accrued reduction of 93% of lost-time injury rate (CAF) per 2015, approximately 117,627 between the years 2002 and 2015, million hours worked was 0.26, a behavioral dialogues were carried the rate of accidents with and higher result than the 0.14 from out, an average of one every four without lost time was 0.68 per 2014, but represents an accrued minutes. This figure represents a million hours worked (including reduction of 92% between 2002 rise of 11% compared to 2014. Team Members and Partners). This and 2015. Injury Rate Without Lost Time + With Lost Time (1,000,000 HHT) 8.49 7.52 6.53 6.13 4.85 4.93 4.63 11 10 10.07 9 8 7 6 5 4 3 2 1 0 2.02 1.16 1.04 1.04 1.00 0.68 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 59 2015 | Braskem | Annual ReportLost-time Injury Rate (1,000,000 HHT) 11 10 9 8 7 6 5 4 3 2 1 0 3.06 2.45 2.08 1.70 1.70 1.07 0.66 1.01 0.62 0.55 0.35 0.39 0.14 0.26 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 In 2015, the Company invested R$ 79 million in workplace safety and process safety improvement projects, minimizing the risk of 16 scenarios with a high potential for accidents. Severity Rate (Lost Days + Paid x 1,000,000)/mhw 280.000 260.18 268.48 240.000 200.000 160.000 120.000 80.000 40.000 0 184.19 109.68 77.69 52.70 50.94 67.08 41.17 31.01 44.66 30.79 28.55 10.68 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 The lost-time injury rate In occupational medicine and convictions in labor health and (that assesses the severity of health management, Braskem safety lawsuit decisions represented accidents using the number of recorded zero new cases of about R$ 19 million. In addition, days the injured Members miss occupational illness. This is a result due to the reduced number of work) was 28.55 per million of improvement and awareness work accidents and occupational hours worked. This represents actions with investments of R$ 4.6 illnesses at Braskem from 2012 to a 90% rise compared to 2014, million in projects related to the 2013, a new accident prevention but an accrued reduction of topic in 2015. 90% between 2002 and 2015, factor was defined and published by the Federal Government, a indicating that the accidents are The avoided cost of amounts measure that generated savings of less and less serious. disbursed for the payment of about R$ 800,000 in 2015. 60 2015 | Braskem | Annual ReportSafety in Logistics Braskem works continuously product families by risk class, the purpose of reducing the number on developing and improving type of equipment used, loading and consequences of possible its processes, reassessing all and unloading operations, at incidents, improving the safety logistical operational risks industrial plants as well as of operations and the entire focused on reinforcing the HSE terminals and ports, including supply chain. In 2015, the main guidelines regarding highway the transport companies and focus was studying the risks of and maritime transport, as their routes. well as the storage of chemical Braskem's priority operations, involving highway and maritime products at foreign terminals. All guidelines about processes operations, with the consequent This work considers current laws, and equipment have the definition of control barriers. 2015 HIGHLIGHTS • Zero record of serious SEMPRE, in order to identify • Assessment of the HSE maritime accidents involving risks and define control Requirements in Logistics hazardous chemical products. barriers. Contracts for Highway • Reduction of 64% in the • Defined Corporate Safety Transport. rate of highway accidents Guidelines for Logistics • Simulations of maritime involving hazardous chemical Operations Involving and highway emergencies, products, compared to 2014. Hazardous Chemical Products with the participation of • Risk studies carried out • Strengthened the Hazardous civil defense, environmental for 100% of products Chemical Product Logistics bodies, the fire department, classified as priority, a total Suppliers Corporate and others. of 10 products: 46 routes, Inspection Procedure • Social responsibility on the eight transporters, eight (Transporters and Terminals), value chain: continuous loading/unloading areas, based on guidelines from the support for the Na Mão Certa two highway equipment Health, Safety, Environment, program, with the main configurations, and nine and Quality Assessment purpose of ending sexual ships were evaluated. System, ABIQUIM, and the exploitation of children and • HSE inspections at CDI-t (Chemical Distribution adolescents on Brazilian maritime terminals based Institute). highways. on international standards • Strengthening of the record and such as the CDI-t (Chemical statistical handling of incidents, Distribution Institute), and focusing on chemicals. 61 2015 | Braskem | Annual ReportProcess safety G4•SO2 | GLOBAL COMPACT • PRINCIPLE 1 In order to ensure safety in important focus for the year The Tier 1 accident rate was all of its processes, Braskem was developing improvements 0.32. Although it is higher than carries out advance evaluations in criteria, practices, and that of 2014, it is still lower of scenarios for mitigating standards, management of than average for companies in potential risk and safe recommendations, and the the American chemical industry management of changes. In pyramid of Process Safety (0.36 in 2014). addition, the Company annually events 13, as well as the carries out a Critical Analysis continuity of barrier audits At the base of the pyramid, to for identify opportunities and the implementation of 2,823 events were registered, improvement and technical actions for risk ensuring strengthened validate short, medium, and mitigation for scenarios with operational discipline. The 8% long-term strategies. greater significance. higher record compared to the This process is continuously In 2015, Braskem recorded commitment of Team Members strengthened by the 11 Tier 1 events (as shown in to reducing the number of small Company's, who work hard on the table below), an increase events in order to minimize managing risks in processes, compared to the four events the likelihood of occurrence of operations, and logistics. An recorded the previous year. events of higher severity. previous year demonstrates the TIER 1 2 3 4 Incident with loss of containment and release of product above cut-off point. Incident with loss of containment and release of product below cut-off point. Incident with small loss of containment or system failure that could potentially lead to a process accident. Deviation of conduct or failure in operational discipline. Proactive indicator designed to ensure that protective layers and operational discipline are intact and reliable. Process Safety Indicators (Tier 1)14 Number of Accidents Accident Rate 4 29 11 0.7 0.09 0.32 3 2 1 0 Severity Rate 3.24 3.41 0.25 2013 2014 2015 2013 2014 2015 2013 2014 2015 13 The Pyramid of Events (or Losses) provides the basic necessary theory for understanding the logic of the safety policies and programs adopted at the companies for loss and/or accident prevention. 14 Tier 1: i) most severe level of accident in the process, according to CCPS (Center for Chemical Process Safety); ii) Number of Tier 1 Accidents multiplied by 1 million, divided by number of hours worked; iii) Severity of Tier 1 accidents according to CCPS score multiplied by 1 million, divided by number of hours worked. 62 2015 | Braskem | Annual ReportIn 2015, R$ 13 million were strengthening the discipline in small leaks and deviations in invested in process safety key aspects of process safety, process safety, strengthening improvement processes. such as change management, the learning and scope of The outlook for 2016 is for accident investigation and process events. continued improvement through risk analysis, monitoring PROCESS SAFETY INDICATORS (TIER 2)15 Number of Accidents Accident Rate 91 49 40 2.2 1.13 1.17 2013 2014 2015 2013 2014 2015 Risk Rating G4•22 In a search for an improved direct participation of Leaders Risk Rating for its plants, in prevention actions. We point Braskem advanced at almost out that Risk Rating criteria is all the plants inspected by increasingly more rigorous, so insurers and reinsurers during much so that in order to stay at the year 2015. The result the same rating level the plants achieved is due to the efforts require continuous improvement. undertaken in risk management In the 2014 report, there was programs, improvements in the incorrect information concerning facilities and in safer production the number of plants classified processes. These gains are the as “Above Standard” and of result of improvements in the the expected goal, which were implementation of Management corrected below: System for training programs, internal safety audits, and the INTERNATIONAL STANDARD Number of plants rated Above Standard in 2015: 12. Total number of plants rated Standard in 2015: 16. Total Plants Above Standard Standard 2014 2015 10 12 18 16 Braskem does not have a goal for this indicator. Note: determining the number of industrial plants considers the site. Is processes are considered, the number of Braskem plants is 36. 15 Tier 2: i) safety events in processes similar to Tier 1, with loss of primary contention, of lesser significance; in other words, with smaller criteria, such as: volume of chemicals released to the atmosphere (10% of Tier 1); personal accident without lost time; cost of material loss associated with fires/explosions (10% of Tier 1), according to CCPS (Center for Chemical Process Safety); ii) number of Tier 2 accidents multiplied by 1 million, divided by number of hours worked. 63 2015 | Braskem | Annual ReportRAPID RETURN TO OPERATIONS AT ABC Efficiency and the levels of the fire was extinguished in just have been exported to supply operational safety management thirty minutes, without causing Clients served by the plant in the at Braskem were highlights of serious injury to Team Members ABC region. It is worth noting that 2015. After an incident caused by or major damage to the location. the return of operations occurred the rupture of a pipe in a transfer only after the implementation of line from the pyrolysis furnaces, In addition to the immediate all measures and improvements with the leak of a flammable gas shutdown of the plant, Braskem recommended by the Braskem on October 14, the Company was concerned about maintaining Investigation Committee and returned to operations at the transparency of the facts with the verified by competent authorities, Grande ABC Petrochemical Center local Community. To this end, the as well as an inspection carried in São Paulo (Brazil), just over a Company distributed newsletters out by the Ministry of Labor. month after the fire occurred on with details about the event to Since assuming plant operations November 24. the residential areas located a in 2010, the Company has three-kilometer radius from the had environmental operating This rapid recovery was due to plant and provided the population licenses, as well as ISO 9001 contention work begun just ten with a direct toll free line. and ISO 14001 certifications, minutes after the accident joining certifying, through independent members of the operational This temporary shutdown of the auditors, its excellence in quality team, the emergency brigade, unit did not leave Clients without management and environmental and the local fire department. supplies, because Braskem management. Through this coordinated action, redirected production that would 64 2015 | Braskem | Annual ReportProduct Safety G4•PR1 | G4•PR2 | G4•PR3 | G4•PR4 Braskem considers safety to be other time depending on the potential social and environmental one of its biggest competitive progress of safety information and impact (such as minerals from advantages and the Company the publication of studies about conflict zones, regions where adopts higher safety standards the products. disrespect for human rights not only in its operational In 2015, Braskem made occurs associated with the processes, but also when advances by improving product mining, transport, or marketing considering the use of its products management, issuing specific of minerals, for example) are by Clients in the different documents for sensitive products, not used. sectors of the chemical and and publishing a global position In the United States, the Company manufacturing industries. about Phthalates for key areas. uses the MSDS (Material Safety Data Sheet), and in Europe, Because of aspects inherent to Control and updates of product the SDS (Safety Data Sheet). petrochemical products such information are available on Both are items required by the as dangerousness, toxicity, Chemical Materials Safety Data regulatory agency in the USA corrosiveness, flammability, Sheet (FISPQs in the Brazilian (Occupational Safety and Health sensitivity, environmental impact, acronym) and on Braskem Administration, or OSHA) and the and others, Braskem rigorously product labeling, based on relevant policy from the European identifies impacts when controlling Brazilian standard NBR 14725 Union (REACH), based on the the documentation provided, concerning “GHS Classification Globally Harmonized System of the safe handling of inputs, and Labeling of Chemical Products Classification and Labeling of raw materials, and products, – contemplating classification for Chemicals (GHS), created by the and information provided to products in order to synchronize UN. transporters, distributors, and health, safety, and environmental Clients. Safety procedures information.” All FISPQs for These FISPQs, MSDS, SDS adopted by Braskem focus on products manufactured and were evaluated, revised, and reducing impacts throughout the marketed by the Company are validated in 2015. The Product production process through the updated and may be found on Stewardship procedure (joint use of technology with fewer the Braskem website. Recorded product management with gas emissions, monitoring the information contains guidelines the Client) was also enhanced rate of resource consumption, about transport, handling, through the evaluation of waste generation, and the proper and disposal of each product. international requirements for treatment and disposal of effluents Inspection programs, internal Responsible Action programs and waste. For this, the Company and external audits, audits by and the Global Product Strategy, uses specific tools for analysis and SEMPRE and the corresponding coordinated by the International adopts the necessary measures action plans prepared based on Counsel of Chemical Associations. for mitigating identified risks. It is the diagnostics of these audits. This procedure establishes a continuous action, not inflexible, communication with stakeholders, with a frequency that may vary Data on third parties or component including Clients, and clearly between the three years defined origins are not provided because defines roles and responsibilities. in an internal procedure and any substances with significant In 2015, no cases were recorded of non-compliance with regulations regarding impacts on health and safety during the life cycle of Braskem products, including issues related to information sheets and product labeling 65 2015 | Braskem | Annual ReportENVIRONMENT GLOBAL COMPACT • PRINCIPLES 7, 8 AND 9 Braskem seeks to continuously consumption of energy, water, and During the year, the Company develop innovative solutions that intensity of greenhouse gas (GHG) invested R$ 31 million in may generate less environmental emissions. This way, its indicators environmental improvement impact. In 201516, Braskem for waste and effluent generation projects, generating savings of R$ continued investing in and and energy consumption 144.4 million in 2015, as a result implementing initiatives toward and GHG emissions showed of process improvements with reducing generation of liquid their best performance in an impact on environmental and effluents and waste, as well as the Braskem history. energy efficiency indicators. Waste management17 G4•EN23 Due to the potential negative to plant efficiency. During these In 2015, waste generation had impact on the health of people and events, the teams work on reducing the best result in the history of the environment, the reduction waste generation and adding value Braskem. During the year, 32,900 and correct disposal of waste is to the waste that will be generated. tons of liquid, solid, and sludge part of Braskem's macro-objective waste were generated at Braskem for Safety of the Strategy for After identifying the types of waste plants, representing a 10.3% Sustainable Development. generated, Braskem seeks solutions reduction compared to 2014. for those that may be reused through The waste generation index was Waste generation at Braskem is composting, recycling, or recovery, 2.01 kg/t of marketable product influenced by seasonal and non- transforming some of the industrial produced, a result 12.6% less seasonal events such as unplanned waste into business opportunities. than 2014, and 8.6% better than shutdowns (that may occur due The Company provides correct the goal established for the period, to a power outage, for example), disposal of the waste that is not which was 2.20 kg/ton. Achieving and planned shutdowns for reused, in accordance with local the goal meant savings of R$ 3.7 maintenance and improvements environmental law. million in 2015. Since 2002, the volume generated showed an aggregate reduction of 65%, result of intensifying measures focusing on avoiding generating waste. On average, waste generation at Braskem is 2.2 times less than the average in the chemical industry in Brazil 16 From 2012 to 2015, eco-indicators for the production of vinyl ics sold between units were not included; however they were included in the GHG indicators and the company's financial statements. 17 The total production does not include the internal transfer of finished goods at the Vinyls Unit. 66 2015 | Braskem | Annual ReportWASTE GENERATION - KG/T Among the points that positively influenced the results are improvements in plant maintenance and cleaning procedures, classification and separation of waste, and changing equipment that generates waste, as well as reverse logistics actions. This index considers the generation of waste during production processes divided by the total production of marketable products, excluding finished goods transferred between vinyls units. 5.78 4.52 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 3.53 3.28 3.41 3.10 3.38 2.40 2.21 2.67 2.28 2.20 2.30 2.01 0 1 2 3 4 5 6 DISPOSAL OF WASTE GENERATED (%)* 55.3% 57.1% 60.6% 61.8% 29.6% 21.7% 26.8% 29.7% 21.1% 15.1% 12.6% 8.5% 2012 2013 2014 2015 Reuse Potential Reuse Waste *These percentages were estimated from the data referring for approximately 94% of waste generated in 2015. 67 2015 | Braskem | Annual ReportWASTE DISPOSAL* (THOUSAND KG) The Company continued working on Supplier that recovers organic solvents to keep reducing the generation rate several studies for reducing waste and generated an impact on the of non-reusable waste and increase its generation and the increase of its reuse. increase of the Company's reuse rate reuse rate. An example was the development of a in 2015. The expectation for 2016 is In 2015, Braskem reused 9.3 million kg of waste that were disposed of as follows: Recycling Recovery (including energy) Sanitary / industrial landfill On-site storage Incineration Reuse Composting Underground injection of waste Other** TOTAL 2013 19,858 3.169 11,152 187 17,263 290 306 8,568 9,650 2014 7,930 5,424 21,493 748 20,408 238 662 7,960 5 70,443 64,698 2015 4,628 3,975 2,804 1,859 1,713 739 274 0 3,700 19,692 *There is no direct correlation between generated waste (the base of the eco-indicator) and the disposed waste, because much of the waste generated during the year is stored until reaching the proper volume to be sent to the chosen destination, which may occur years after being generated. ** Other: autoclave; thermal vacuum demercuration; co-processing of waste in clinker rotary kilns for cement manufacturing; soil decontamination by thermal desorption. Water efficiency18 G4•EN8 | G4•EN10 | G4•EN22 In the year where the risk of consumption rates during the operations unrestricted, due to lack of water supply reached year. The estimate is that the water availability and disposal alarming levels, especially in savings reached R$ 5.5 million, in 2015. São Paulo, Braskem ensured achieving R$ 3.1 million by important results regarding adjusting consumption, and In addition, Braskem has been water recycling and reuse R$ 2.4 million by reducing developing a set of initiatives in its operations, as well as expenses on effluent disposal. with the purpose of improving significantly reduced water All Braskem units carried out its water use performance: ALAGOAS PVC2 AL: R$ 1.2 million 2013 to 2015, providing a of water consumption, and a invested in improving cooling 23% reduction in the average 14% reduction in the rate of towers, measuring, steam water flow collection from liquid effluent generation, traps, and eliminating physical the Rio dos Remédios river, a totaling an estimated gain of losses during the period of 19% improvement in the rate R$ 700,000/year. 18 The total production does not include the internal transfer of finished goods at the Vinyl Unit, which will be included beginning 2016. 68 2015 | Braskem | Annual ReportSÃO PAULO UNIB 3 ABC: R$ 28,000 invested in • Increase the number of olefins area. a recovery project for cooling water concentration cycles in the • Return the Blow Down from from analyzers of olefin pyrolysis cooling towers; in 2013, there the furnaces to the water furnaces, allowed a reduction of were 5 Concentration Cycles, cooling system rather than 0.014m³/t in the effluent index, and in 2015 there were 8.3 draining into the channels. representing an estimated savings of R$ 150,000/year. cycles, providing savings of 56 m3/h. • Reduce the use of cooling water in the furnace decoking • Use waste from reverse knockout drums. UNIB 3 ABC: due to the better osmosis in the cooling tower. PP3 PLN: eliminated the use of quality of purchased water • Reuse industrial effluents as 139 m³/year of drinking water (Aquapolo), it was possible to: service water at the plant; at the quality control laboratory, • Recover water from water • Reduce Blow Down in the representing an economic gain treatment boilers, furnaces, dilution steam generator of R$ 3,500 in project 6Sigma of and analyzers, approximately vessel (FA-221-Effluents) and “zero” investment. 10m³/h. the cracking furnaces in the RIO DE JANEIRO PE9 DCX: implementation of water river basins in Brazil, focusing on All of the Company's water reuse project using water from the areas where their operations are consumption is monitored by an sealing of extruders allowed for the reuse of 110 m3 per day, as located. This study will serve as a indicator correlating the water basis for defining regions where the consumed with the production of well as promoted the reduction of Company should focus its efforts marketable products. This allows 62 m³ per day of demineralized on water reuse and consumption Braskem to closely analyze the water, totaling an estimated annual reduction projects. Completion performance of its process savings of R$ 291,000. At the end is scheduled for the first half of regarding water efficiency. of 2015, Braskem began a water 2016. Action plans will be built in stress assessment project at four partnership with the plants. WATER CONSUMPTION m³/t 4.14 4.25 4.26 4.29 4.50 4.48 4.15 4.23 4.30 4.16 3.97 3.83 3.83 4.05 5 4 3 2 1 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: this index considers water consumption during production processes divided by the total production of marketable products, excluding finished goods transferred between vinyls units. Consumption of 4.5 m3/t of water at Braskem is about six times less than average for the global chemical industry, which is 25.64 m3/t (based on the International Council of Chemical Associations-2013). 69 2015 | Braskem | Annual ReportIn 2015, a total of 4.05m3 of water region, the increase in the use of • Improving concentration cycles per ton produced was consumed, clarified water at some of the plants at the cooling towers, reducing a result 1.6% better than the due to the low quality of water blow-down. Particularly Ciclo goal stipulated for the year (4.11 m3/t). In absolute terms, Braskem consumed 66.2 million m3 of water withdrawn and the intense heat of Máximo Project at UNIB 4 DCX. 2015, causing more evaporation at • Improved equipment the cooling towers, Braskem was maintenance (reactors and in 2015, representing a 0,7% successful with several actions heat exchangers). reduction compared to 2014. that significantly contributed to Around 99.9% of this total was good performance regarding the It is important to highlight that used in production processes. The conscious use of water: the accident that occurred in Brazilian industrial plants consumed 62 million m3 and the international plants consumed 4.2 million m3. • Clarified water reduction October 2015 at UNIB 3 ABC, project for hauling coal ash caused an unplanned shutdown at and improving the steam the plant. This fact reduced water consumption in the flare in consumption and predominantly Despite some negative impacts, UNIB2 RS. affected the reduction in the such as the incident in October • Reduced leaks and losses at company's consumption rate. 2015 with the cracker in the ABC the plants Virada Sustentável For the fifth consecutive year, and social mobilization actions attractions carried out by the Braskem sponsored the Virada around the importance of the project, in specific public spaces, Sustentável (Sustainable Agenda), conscious use of water resources. one of the highlights being a an event that took place in São The Company invested in brand ball pit for adults at the Paulo that includes educational association with four educational Villa Lobos park. Regarding the reuse of WATER REUSE RATE* water, the Company has been developing actions including the use of rainwater, treated domestic sewage water, and industrial effluents. In 2015, the reuse rate reached 25%, and therefore, 16.6 billion liters of water were kept from being extracted from bodies of water. 30 25 20 15 10 5 0 29.5 28.1 25.0 23.8 * Not including reuse of water in cooling towers 2012 2013 2014 2015 70 2015 | Braskem | Annual ReportThe good results of Braskem's the Capuava petrochemical waste at the Camaçari complex water reuse rate are due complex, in Mauá, SP. In 2015, in Bahia, has been undergoing to developing projects with Aquapolo enabled the reuse of reevaluation since March 2015. Aquapolo – an initiative created approximately 8.3 billion liters of in the ABC Petrochemical water, treated domestic sewage In 2015, a total of 1.15 m3 of Complex, in São Paulo, in water, accounting for 50% of liquid effluents per ton produced order to treat sewage water Braskem's total water reuse. was generated, 6.6% below the for industrial purposes. A partnership with Sabesp and goal established for the period, which was 1.23 m3/t, and 10.3% Odebrecht Ambiental, the project The Água Viva project, below the total reached in 2014. has helped reduce the demand developed in partnership with This was the best result for for drinking water supply at Cetrel for treating effluents and Braskem since its founding. Liquid Effluent Generation - m³/t 1.94 1.74 2 1,5 1 0,5 0 1.40 1.50 1.34 1.28 1.44 1.40 1.32 1.24 1.22 1.17 1.28 1.15 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: this index considers the generation of effluents during production processes divided by the total production of marketable products, excluding finished goods transferred between Vinyls units. Among the year's highlights exchangers), and the overall operations, where about for record reduction in effluent reduction of leaks and losses at US$ 40 million in projects generation, are improvement of the plants. concentration cycles in cooling ensuring water efficiency have already been invested. towers, reduced blow-down For 2016, Braskem foresees However the water collected (particularly the Ciclo Máximo an increase in intensity of is low quality according to Project at UNIB 4 DCX), improved consumption due to the new some parameters that directly equipment maintenance (heat complex in Mexico beginning impact consumption. 71 2015 | Braskem | Annual ReportENERGY EFFICIENCY19 G4•EC2 | G4•EN3 | G4•EN5 | G4•EN6 | G4•EN15 G4•EN16 | G4•EN17 | G4•EN18 | G4•EN20 G4•EN21 | GLOBAL COMPACT • PRINCIPLE 7 Regarding the electricity of internal energy sources, and purchase portfolio, despite mainly, the use of natural gas. the continued water shortage in Brazil, the extension of the Energy consumption met the hydroelectricity contract with year's goal and showed a result Chesf secured a significant 2.4% better than 2014. This is interest in renewable energy the best result since Braskem was in the contracts. Additionally, founded, and meant savings of R$ the increase in wind power 56 million in 2015. In 2015, a total generation in the Brazilian of 10.49 GJ of energy per ton of electrical system alleviated produced product were consumed, an even greater impact of the a result 1.3% better than the share of thermoelectric plants goal established for the period. in purchased energy. On the In addition, 8% of all energy other hand, the water restriction consumed came from renewable implied an increase in internal sources, the equivalent of 13.7 generation based on the reuse million GJ. 19 Total production does not include the internal transfer of finished goods at the Vinyls Unit. ENERGY CONSUMPTION - GJ/t Braskem's main sources of energy in 2015 Electricity: 9% Natural Gas: 16% Other external fuel (1): 5.5% nternal residual fuel from the petrochemical process: 68.8% 1Other fuel mainly comes from burning oil and coal. 11.90 11.83 11.47 11.55 11.46 11.47 11.27 11.12 10.77 10.65 10.55 10.67 10.74 10.49 12,0 11,5 11,0 10,5 10,0 9,5 9 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: this index considers energy consumption during production processes divided by the total production of marketable products, excluding finished goods transferred between Vinyls units. 72 2015 | Braskem | Annual ReportAmong actions that contributed to The Company has also been winter in the USA this result are energy optimization monitoring points needing • High-voltage electrolysis cells initiatives at UNIB 2 RS, the attention that negatively impact at chlor-alkali plant reduction of intermediate stock, the indicator in 2015, such as: • Incident in October 2015 cleaning the heat exchangers • Production 3.7% below with the cracker at ABC also with increased efficiency, the sale planned had negative impact on some of LSC at UNIB 2 RS, the use of steam traps to produce steam for • • Loss of steam eco-indicators. Planned and unplanned • Use of steam to offset dilution and energy optimization shutdowns loss of efficiency in some at the plants. • Temperatures lower than the exchangers. historical average during the Camaçari Plant In 2015, an intelligent load protects the cracker from plant operations ensured gains shedding system began blackouts or sudden surges of in competitiveness by renewing operation at the Camaçari plant power failure, ensuring more the energy supply contracts (UNIB 1), that isolates the safety and stability for the with the Companhia Hidrelétrica critical loads in the external petrochemical operation. In do São Francisco (Chesf). electrical system. The solution addition, Camaçari (UNIB 1) MAIN BRASKEM INITIATIVES THAT RESULT IN GAINS IN ENERGY AND SAVINGS G4•EN20 | G4•EN21 INITIATIVE ECONOMIC GAIN (R$ MILLION) Improvements in production process (except furnaces) and the sale of electricity Furnace optimization Improvements to boilers and turbines Reduced steam consumption Reducing flare loss Improvements to cooling systems 50.755 32.702 19.265 8.063 5.047 0.977 73 2015 | Braskem | Annual ReportOther Emissions In addition to GHG emissions, Braskem manages other air emissions for which it is liable, such as ozone layer depleting substances and local pollutants (NOx, SOx, etc.). EMISSION OF OZONE LAYER DEPLETING SUBSTANCES SUBSTANCE HCFC 22 HCFC 141b 2013 (T) 2014 (T) 2015 (T) 175.7 4.8 48.3 0.3 53.0 2.3 Braskem has also been replacing substances that deplete the ozone layer for other substances not in the Montreal Protocol. NOX, SOX AND OTHER SIGNIFICANT AIR EMISSIONS 1 EMISSION 2013 (T) 2014 (T) 2015 (T) NOx SOx Volatile Organic Compounds 12,157 6,582 2,707 Particulate Matter 1,547 Toxic Air Pollutants 549 Other(3) 6,108 11,421 11,509 3,881 1,225 97 6,190 9,546 4,503 3,808 911 652(2) 14,495(2) (1)Methodologies used are recommended by state environmental agencies. Where there is no measurement, estimates are used (emission factors) based on recognized methods, such as AP-42 from USEPA, for example. (2) The plants have been expanding their evaluations; this explains the increase in these parameters. (3) Includes total hydrocarbons and carbon monoxide. The participation of coal appropriate energy option, from based electricity and evaluating increased in the energy matrix the eco social and environmental the introduction of biomass. by replacing non-renewable, tripod perspective, for UNIB less sustainable fuels. This 2 RS, the user of this fuel. In addition, increased availability movement was only possible due of natural gas in Brazil to the improved quality of coal Stricter environmental contributes to the increased that kept its emissions standards regulations for air emissions share of this fuel in the energy and was justified through are expected for the coming matrix, replacing other inputs the study of the Life Cycle years. Thus, the Company has such as oil fuel and other Assessment conducted in 2014. been seeking to increase the petroleum by-products, reducing This study indicated that among share of renewable resources emissions and contributing to a all fuel options available in Rio in its energy matrix, especially cleaner matrix. Grande do Sul, coal is the most the introduction of wind power 74 2015 | Braskem | Annual ReportSocial and Environmental Protection G4•EN31 In addition to working to prevent ground water, surface water and environmental stations, Braskem environmental damage through sediments, air emissions and air makes specific investments to continuous monitoring of quality, and wildlife and flora in the address environmental liabilities. TYPE OF EXPENSE Investments in HSE Work Safety Process Safety Health Environment Spending on treating effluents and waste Treatment of liquid effluents Waste management Management of Emissions Environmental Licenses Depreciation(1) Environmental liabilities (2) Other Environmental Management Costs (3) AMOUNT (R$ MILLION) 114.4 65.6 13.0 4.7 31.1 93.2 50.5 42.7 8.1 1.1 46.0 65.8 66.6 (1) The depreciation value is an estimate based on previous years. (2) The value reported in Environmental Liabilities refers to what has been provided for use based on expected needs for the coming years. (3) Other costs with environmental management include ground water management, environmental noise monitoring programs, the quality of surface water resources (lakes, rivers, oceans), and pipelines, environmental risk management, and energy and water administration. 75 2015 | Braskem | Annual ReportSuppliers G4•EC9 As a result of the decentralized concerning Health, Environment and professional principles. structure of Europe, Braskem and Safety (HSE). With Thus, the Company only hires Supplier management is divided specific regard to this issue, Suppliers that are current between several contract the Company has a robust with their regulatory and tax areas, each one responsible for HSE culture that permeates obligations, technical and its analysis of expenses, the relationships with Suppliers. administrative qualifications, quality of products and services and have a healthy economic purchased, adherence to the The Company expects that and financial situation. Today, Code of Conduct, and legal all of its partners behave in a Braskem has approximately regulations and requirements manner aligned with its ethical 8,000 Suppliers. All Suppliers have access to the Braskem Ethics Line communication channel, where they may contribute information that strengthens the transparency and trust between the parties. All complaints registered are investigated and remedial measures are taken to ensure the correct outcome of any problems PERCENTAGE OF PURCHASES FROM LOCAL SUPPLIERS BY COUNTRY20 4% 1% 36% Brazil Germany USA 64% 64% 96% 96% 99% 99% Local Suppliers Foreign Suppliers It is worth noting that the increase in the percentage of spending in Brazil with foreign Suppliers is mainly due to the depreciation of the Brazilian real, not the increase in imports. 20 Purchases in Mexico will begin to be reported after the start of the plant, so that the data reflects the operational profile and not the construction or preparation phase. 76 2015 | Braskem | Annual ReportSUPPLY CHAIN G4•12 WATER AND DISPOSAL OF WASTE AND EFFLUENTS MACHINERY, EQUIPMENT AND INSTALLATIONS TECHNICAL AND COMPLEMENTARY SERVICES ENERGY INPUTS CLIENTS SOLVENTS AND ADDITIVES ETHANOL HANDLING, STORAGE AND SHIPPING NAPHTHA AND ETHANE CONDENSATE, PROPANE AND HLR Resources used Correlation with macro objectives Safety Energy efficiency Renewable resources Local development Water efficiency Climate change Strengthening of sustainable development practices Number of Suppliers Naphtha and ethane condensate, propane and hlr Ethanol Solvents and additives Machinery, equipment and installations Energy inputs Water and disposal of waste and effluents Handling, storage and shipping Technical and complementary services Technical and complementary services Machinery, equipment and installations Others 77 2015 | Braskem | Annual ReportManagement of main Supplier categories The following are highlighted practices and specific results of Braskem's main procurement. Fossil raw materials The largest share of Braskem's propylene in the United States the continuity of operations and spending on Suppliers refers to and Germany, and ethane in keep costs under control, the fossil raw materials - naphtha, Mexico. In Brazil, the main Company has contracts for these condensate, ethane, propane naphtha Supplier is Petrobras, a strategic raw materials, in all of its and HLR in Brazil, ethylene and Braskem Shareholder. To ensure countries of operation. Ethanol Ethanol Suppliers represent one Suppliers through long-term came from plants with which of the categories with the highest contracts that include signing the Company has contracts, social and environmental risk for the Code of Conduct for Ethanol well over the goal of 90%. The the Company, and therefore, Suppliers, developed in 2010 remaining 0.2% was bought via undergo a careful management by Braskem specifically for this the commodities exchange to process. A specialized team category with the support of meet temporary demands. It is ensures that the supply is in Proforest. line with the commitments and worth noting that the goal for 2016 will remain at 90% so that values of the Company and its In 2015, a total of 99.8% of the Company has flexibility and Clients, working mostly with ethanol purchased by Braskem access to new Suppliers. The Code of Conduct for Ethanol Suppliers establishes standards expected by the Company in terms of deforestation and fire prevention, biodiversity protection, respect for human rights, and labor relations, and monitoring social and environmental indicators Learn in detail about management process for these Suppliers and the Code of Conduct at Braskem > Code of Conduct for Ethanol Suppliers The monitoring of contracted annual goal of 80%. All results of each year may vary. Therefore, Suppliers includes independent these audits are communicated there was a natural variation in audits at plants and forest areas. to the plants and corrective this figure when comparing to the In 2015, they were carried out action plans are established 95.7% audited in 2014. by WQS, a company specialized and monitored jointly by the in industry certifications, such as companies. Bonsucro. The plants that supply Generally, audits attested to a good level of compliance to the 87% of the ethanol purchased It is important to note that the Code. The following is a general between July 2013 and June 2015 audits are valid for two years and overview of the results obtained were audited, a result above the the volume supplied per plant in 2015. 78 2015 | Braskem | Annual ReportPositive highlights: • All plants carried out training environmental as well as • 100% of the harvest was for continuous improvement social issues; done mechanically, without in health, safety, and the • Interviews with workers and the use of fire, and in 83% environment with their local review of plant records attest of the plants, the sugar communities. Some projects to compliance with human cane bagasse was used stand out for going beyond rights, including but not to generate energy, an philanthropic donations limited to the prohibition of important factor for the level and creating structured, child or forced labor. of carbon sequestration of continuous Community green plastic; training programs about Main areas for improvement: • At two plants, procedure flaws • At one plant, opportunities for • One plant had not yet were identified that caused a improvement were identified concluded the mapping of lack of appropriate personal in the monitoring process of its riparian woods in leased protective equipment; corrective actions defined areas and another must • Two plants were asked to for accident prevention after improve the quality of its improve pesticide labeling incidents and investigations. map in order to identify and storage procedures, and ocorrências e investigações. areas in need of recovery; training of the workers in that area; Procurement Brazil In Brazil, the Procurement area Braskem's competitiveness and go into effect for evaluations concerns the purchase of direct the guarantee of the availability that will be carried out in 2016. and indirect goods and services. of goods and services essential to The review had the purpose of The area is responsible for the business. contracting Industrial Services, improving the identification of deviations and expanding its use essential to maintaining plant The selection of Suppliers in routine follow-ups. Suppliers operation; Corporate Services, is made by a Supply team that must be monitored by the that support other areas of the jointly with user areas and Supplier Performance Index are Company and its Members; the undergoes quality analysis with identified by the Criticality Matrix purchase of Inputs and Packaging established parameters, as well of the Company's purchase necessary for production; the as standardized HSE evaluations, categories, which take into purchase of materials applied and must meet financial criteria consideration the category's during maintenance and and fulfill regulatory obligations. importance to the Business and operations (MRO - Maintenance, Among indicators used for their its social and environmental risk. Repair and Operation), and management is the Supplier equipment for new investments. Performance Index, in which For Suppliers providing services In addition, in 2015, the indicators considered critical are within Braskem plants, additional area became responsible for evaluated by Braskem concerning risk criteria in terms of HSE are management of warehouses quality, productivity, and HSE. included. These critical Suppliers and the Company's stock of Deviations identified through are monitored by a Prevention MRO materials. these assessments are addressed Index. The Prevention Index with an action plan involving takes into consideration several In 2015, due to the troubled the user, the Supplier and the points, such as deviations and economic scenario in Brazil, Procurement areas. Throughout losses, plans for maintenance the area had as one of its 2015, this indicator underwent and inspection, and HSE. Its main focuses maintenance of revisions and updates that will monitoring includes an annual 79 2015 | Braskem | Annual Reportaudit that verifies compliance Supply Chain Project once purchasing area of Braskem with the annual HSE program, again, which asks Suppliers to Idesa in Mexico, carrying out characterized by the evaluation report their greenhouse gas planning of each category, of results and prevention emissions, risks, and associated contract negotiation, and training practices. In addition, it identifies opportunities, and their in the procurement process. The opportunities to improve and strategy for ensuring improved area also coordinated activities recognize best practices. management of the issue. with purchasing teams from the Also in 2015, the Procurement Another focus was on supporting Mexico operations, aiming to area supported the CDP the implementation of the identify and capture synergies United States, Germany, and In 2015, a total of 74 Suppliers answered a survey about air emissions management and their environmental impacts, an increase of 270% in the number of responses compared to the previous year in global negotiations. As part of the initiative, the 3rd Global Procurement Meeting was held in São Paulo, with the presence of Members from the area from these countries. Logistics Brazil Just as in procurement • Propylene: uses the Accident/ • Chlor-Alkali and Polyolefins: management, Braskem's Logistics Incident Prevention Index and Suppliers showing indicators teams work closely with HSE the Service Level Agreement lower than the target for the professionals to guarantee (SLA), a tool that is also used Performance Index participate in compliance with all social and by the resins team. monthly meetings for evaluation environmental requirements • Basic Petrochemicals: and corrective action plans. critical to Braskem's operations. encourages adherence to Transporters below these targets Each team has its own methods programs such as Olho Vivo for three consecutive months of evaluation according to their na Estrada, Transportadora are disaccredited. The area specific needs, all monitored by a da Vida, and Na Mão Certa, also encourages participation Braskem system of performance and carries out the Conscious in the Olho Vivo na Estrada analysis and ABIQUIM's Safety, Partner program with periodic and Na Mão Certa programs, Health, Environment, and Quality meetings to share best HSE as well as annual audits of the Assessment System (SASSMAQ). practices with transporters. transporters headquarters. Logistics teams have the support of professionals in Health, Environment and Safety (HSE) when managing social and environmental requirements critical to Braskem's operations 80 2015 | Braskem | Annual ReportBraskem also maintains embedded in the vehicles. For services in Brazil, and carries out partnerships with Brazil's key products marketed by Basic audits at service bases and in risk managers, and contracts the Petrochemicals, implementation simulated emergencies on main majority of its resins highway of tracking for 100% of its cargo cargo transport routes. freight (non-hazardous product) is in the final phase, as is the with electronic locators or Study of Risk in Logistics for All of this concern is returned with tracking devices. As for hazardous priority products (Benzene and the careful monitoring of events products such as chlor-alkali, the Pygas). requirement is that 100% of the and cargo transport indicators: Transport Accident Frequency freight be tracked and transported The Company also entered into Rate (Per number of trips and per by the Suppliers own fleet, a contract with SUATRANS, kilometer travelled) and Accident while propylene has 100% of its a leader in highway chemical Severity. freight tracked with telemetry and environmental emergency Braskem has a Policy for internally handling Transport Accidents that provides specific actions, such as deadline for concluding an investigation, according to the severity of the event For more information, visit Braskem > Suppliers Concern for the environment is operate with more sustainable engaging Suppliers in voluntarily present as an important topic modes of transportation (whenever monitoring their greenhouse gas in Supplier management. The applicable), and began in 2014 and emissions and opportunities to Company constantly seeks to continued in 2015 the process of reduce those emissions. 81 2015 | Braskem | Annual ReportMORE SUSTAINABLE PRODUCTS Through innovative products and partnerships in the search for new solutions and applications of chemicals and plastics, Braskem seeks to continuously maintain its focus on sustainable growth and to provide benefits to future generations. Braskem's growth strategy is services adherent to the business The innovation made Braskem based on the development of model of its Clients – over 700 the largest industrial scale 21 sustainable solutions with value companies operating in different manufacturer of biopolymers added to different production sectors of the converting industry. in the world, with a dedicated chains that use plastic as an production line at its Triunfo essential raw material for the One of the Company's main plant in Rio Grande do Sul, Brazil, manufacture of final products. features is Green Polyethylene, where the Company's Technology a 100% renewable plastic and Innovation Center is Thus, Braskem significantly invests resin created with its unique also located. in Research and Development proprietary technology after (R&D) for new products and three years of investment in R&D. 21 The installed capacity of the companies was used as a parameter, not the annual production. Source: http://www.cmaiglobal.com/marketreports/globalplastics_polymers.aspx 83 2015 | Braskem | Annual ReportInnovation Innovation is Braskem's path towards growth and indispensable to the Company's survival and perpetuity. With a team of 300 professionals specialized in research and product development, two Innovation and Technology Centers located in Brazil and the United States, 23 laboratories, and seven pilot plants, Braskem is committed to the continuous evolution of the petrochemical industry and the plastic production chain. The Company combines internal and external knowledge, based on the innovation, for concept of open developing new market solutions. Also, Braskem maintains partnerships with 15 universities and research institutions in Brazil with the purpose of finding new solutions for the market of petrochemical products. In 2015, the Company ranked fourth among the 100 most innovative companies in the Country, published by the newspaper Valor Econômico in partnership with consulting firm Strategy&, which has been publishing global innovation rankings for over a decade. This was accomplished one year after American magazine Fast Company chose Braskem as one of the 50 most innovative companies in the world. Braskem innovation in figures 2 TECHNOLOGY AND INNOVATION CENTERS (one in Triunfo, Rio Grande do Sul, Brazil, and one in Pittsburgh, Pennsylvania, in the United States) 23 LABORATORIES 903 PATENT documents registered worldwide R$ 280 MILLION INVESTMENT IN INNOVATION AND TECHNOLOGY 276 PROJECTS in the technology and innovation pipeline 300 SPECIALISTS 7 PILOT PLANTS 84 2015 | Braskem | Annual ReportNew resins In 2015, Braskem added nine may be perceived by human protection, adjusted to meet new resin grades to its portfolio. senses, and is recommended the Brazilian NBR 16029 Some of these new releases are for the food industry, such as standard, used for the highlighted below: dairy and juices. manufacturing of big bags. • Norvic® S80SA: resin with • ML3602U: an all-purpose, • VA4018R: ethylene vinyl heavy molecular weight and medium density polyethylene acetate copolymer, a product high porosity. Because of its (MDPE) for roto molding. with properties similar to flexibility, it is recommended In addition to its high those of elastomers (rubbers), for the production of items performance, this resin utilized in the footwear with high value added, such as shoes. has and excellent mechanical industry in expandable and finishing properties, cross-linked compounds. It • HD7000C, high-density particularly for use in has a lower density, providing polyethylene (HDPE), has agriculture and technical parts. a more anatomical design and high rigidity and excellent • H614: homopolymer a lighter finished product with organoleptic properties, which polypropylene with UV more flexibility and comfort. Renewable Butadiene In 2015, Braskem, in partnership process from renewable sources. manufacturing of rubber for tires, with the North American Together, the companies have also with applications for electrical bioengineering company developed technology for the appliances, shoes, plastics, Genomatica, announced the renewable production of this asphalt, construction materials, production of butadiene on a input since 2013. Butadiene and latex. laboratory scale through a direct is a raw material used in the Braskem Scientific Advisory Group Attentive to what is most innovative ead each one of the areas. For the Kenneth Wagener, a leader in the in the chemical and petrochemical Catalysis area, Braskem relies on field of Macromolecular Chemistry production chain, in 2015 Braskem the knowledge of Vincenzo Busico, and most senior member of the crew, invested in consolidating its from the University of Naples is in charge of providing technical Scientific Advisory Group. This (Italy). Professor Richard Register, advice in the Polymer Science field. group joins specialists in five key from Princeton University (USA), areas for managing the Company's leads the Materials Science field. The Scientific Advisory Group plays knowledge: Catalysis; Renewable The Renewable Technologies chair an important role in the Company's Technologies; Materials Science; is Professor James Liao, from the growth strategy. Among other Macromolecular Chemistry; and University of California (UCLA), in actions, it is also through this group Chemical, Thermodynamics, and Los Angeles (USA). Professor Gilbert of specialists that Braskem targets Process Engineering. The Company Casamatta, president of the IRT its investment decisions for projects chose renowned international Saint Exupéry, located in Toulouse, with high technical content and scientists linked to research France, leads the Chemical, complexity among the most modern centers at the most prestigious Thermodynamics, and Process applications in the industry. academic institutions in the world to Engineering efforts. Finally, Professor 85 2015 | Braskem | Annual ReportInternational Conference on Innovation and Technology As part of its technological With the purpose to promote projects for developing industrial development incentive agenda, integration and sharing of knowledge process improvement. Among Braskem invested in carrying out between researchers from different speakers were Professor Dr. Julia the International Conference on companies, the conference rallied Kornfield, from the California Institute Innovation and Technology for 170 professionals interested in the of Technology, Professor Vincenzo the second consecutive year, chemical and petrochemical industry. Busico, Ph.D. in Inorganic Chemistry in October 2015 in the city of The schedule included lectures and and full professor of Inorganic Porto Alegre, RS, home state the presentation of 100 scientific Chemistry at Frederico II University of Braskem's Innovation and articles that were pre-selected by a of Naples, in Italy, and a member of Technology Center. technical committee, with research Braskem's Scientific Advisory Group. New laboratories In 2015, Braskem increased the properties to strengthen catalyst The year also saw the start- physical capacity of its Innovation development. The other is up of the Process Technology and Technology Center located dedicated to evaluating barriers Development Laboratory, which in Triunfo, RS, aiming to advance to the passage of gasses through is located at the petrochemical the Research and Development polymer films, an important complex in Mauá, SP, an (R&D) of new solutions for tool for the application of investment of over R$3 million plastics applications. plastics in food packaging, in equipment alone. pharmaceuticals, agrochemical The R$ 1.5 million investment drums, and fuel tanks. Also at These three new laboratories enabled the construction the Technology and Innovation will further increase Braskem's of two new laboratories for Center, the Company invested capabilities to create value chemical testing and analyzes R$ 720,000 in the expansion for chemical and plastic based of polymers. One of them is of catalyst characterization production chains through focused on the analysis of laboratory through the purchase research. x-rays to measure residual of new equipment and more content and polymer crystallinity physical space. For more information, visit Braskem > Innovation 86 2015 | Braskem | Annual ReportProducts G4•EC8 | G4•EN7 | G4•EN27 GLOBAL COMPACT • PRINCIPLES 7, 8 AND 9 With the purpose to innovate solutions in the segments in which Learn about some highlights and continue serving Clients with they operate and invest funding and and examples of improvements quality, and therefore, to improve creativity to increase possibilities provided by the new products. people's lives, Braskem teams seek for the use of plastic in society. For more information, visit Braskem > Products and Innovation POLYPROPYLENE (PP) More productivity with Braskem Maxio® line Braskem developed the KM 6150HC energy consumption, enabling the benefits can be easily and quickly resin for application in plastic chairs. manufacturer to reduce the weight estimated: the user only has to It showed significant efficiency of new projects by 10%. insert data about the piece being results for Tramontina, which was manufactured in two situations – Braskem's partner in the creation Also, in 2015, as part of its using a standard resin and using of this product. The resin grade, commitment to the Client, Braskem a Maxio® resin. The application which is a part of Braskem Maxio® developed an application for is available on Android and product line, was responsible for Smartphones that calculates the iOS platforms, under the name a 10% increase in productivity advantages of using the products Braskem Maxio®. as well as a 10% reduction in within the Maxio® product line. Its 87 2015 | Braskem | Annual ReportBraskem Maxio® portfolio of resins has a seal, developed to offer reduced energy consumption, increased productivity, and less weight, guaranteeing more efficiency and, consequently, environmental gains such as reduction in greenhouse gas emissions. Braskem Maxio® Recognition Braskem was recognized for of Commerce. This seal of Braskem Maxio® in the Challenge recognition was a result of the category of the Brazil-Germany improved performance and Innovation Award, promoted by energy efficiency guaranteed by the Brazil-Germany Chamber the resins. Design Challenge Odebrecht Braskem Developed three years ago in a design agency Mais Packing, who are in charge of producing partnership between Odebrecht which supported the students who and marketing the winning pieces. and Braskem, the Design Challenge participated in the contest with the This year, the competition involved project joins architecture and development of their projects, and 18 students from six Brazilian design universities and students to companies Tramontina and Freso, universities. create new furniture products using plastic as a raw material. In 2015, the competition focused on urban furniture, split into two categories: social, for the development of chairs, tables, and benches; and kids, aimed at playground production. The selected projects will be available at Odebrecht Real State Developments projects. For its third year, the Design Challenge included a partnership with the Super sacks made from raffia In 2015, Braskem made this business segment gained super sack capable to withstand substantial progress in one more barrier of film lining the product being prepared the development of a new over the bag's woven material inside the packaging. The water raffia technology, cabable to ensure impermeability for consumption of super sacks of making super sacks for stored concrete. Through a made with raffia in its life cycle cement and more resistant partnership with Holcim, which is only 1/8 compared with the concrete packaging. For extra launched Concreto Pronto, traditional alternative and the protection, the products for Braskem developed a type of energy consumption is only half. 88 2015 | Braskem | Annual ReportBraskem and Inline: partners in the development of plastic fences for major events With the purpose of bringing new is the only plastic option available music festivals, sporting events, safety solutions to this market, in in Brazil and presents a set of and fairs all over the Country. Also, Brazil, the manufacturer Inline, advantages compared to its metal the product has been adopted by in partnership with Braskem, counterpart, such as reduced industries, such as Braskem, as a began manufacturing mobile weight and greater practicality, work safety solution in machinery fences made of polypropylene as well as being 100% recyclable. and equipment, aligned with Brazil for signage, crowd organization, Launched in 2015, the fences have Ministry of Labor's Regulatory and area isolation. The product already been used at renowned Standard 12 (NR-12). PARTNERSHIP WITH AACD In 2015, Braskem secured a with disabilities, for the donation manufacture about 24,000 partnership with AACD, as an of 18,000 tons of polypropylene. prostheses, meeting 100% of the association that assists children The material will be used to AACD's resin needs for one year. POLYETHYLENE (PE) Investment in Linear Low-Density Polyethylene The R$ 50 million investment for Client growth in segments With the purpose to promote carried out in 2015 to increase the requiring high technology resins. effortless processing and meet linear low-density polyethylene the market's high demand for (LLDPE) production capacity With the increase in this line's flexible packaging, the products by 120,000 tons annually at capacity, new polyethylene in the Proxess® family can deliver Braskem's Camaçari plant in products and solutions arrived on performance and flexibility to Bahia, Brazil, enabled an increase the market in 2015, particularly the different applications and Clients. in the supply of products from the Proxess® family, which introduced They are recommended for Flexus® family. Braskem's family new products to produce flexible, automatic packaging boxes, super of high-performance metallocene high-performance films (Proxess sacks, and agricultural and heat polyethylene guarantees support 2606 and Proxess 1806S3). shrinkable films. 89 2015 | Braskem | Annual ReportSolutions for agribusiness Braskem also made progress on new fronts applying plastic films in agriculture. In partnership with EletroPlastic and the Federal University of Uberlândia (UFU) – Monte Carmelo Campus, in Minas Gerais, Brazil, in 2015 Braskem developed a field study about the use of plastic film for soil covering, also known as mulching, in coffee crops. The mulching tests on coffee plants began in January 2014 and were concluded in 2015, at Juliana Farm in Monte Carmelo, one of since it prevents the development Two additional highlights are the leading coffee export regions of weeds, thereby reducing the the use of mulching in pineapple in the Country. cost of weeding and application crops and the production of citric of pre-emergent herbicides. fruits. It provides benefits such After a year and a half of planting, The solution also reduced water as reduced production cost and the study concluded that the evaporation, so that the area water consumption, increased crops with mulching had better always remains moist, with less productivity and reduced loss. results than the control samples, need for frequent irrigation. Launch in the rotational molding segment In 2015, Braskem launched increasingly more demanding to allowing transformers and end another grade in its resin segment requirements. This users to work with lighter parts. portfolio for rotational molding. product allowed Braskem to The most common applications of It is the ML3602U, Linear access more markets such as this grade are the sprayer tanks Medium Density Polyethylene those of technical parts and for agricultural machines, seed (LMDPE), commonly used with a agricultural implements for better boxes for planters, diesel tanks balance of the most appropriate mechanical strength compared to for buses and tractors, 500-liter properties for meeting the the previous version, in addition water reservoirs, among others. Launch for the Consumer Packaging Segment Throughout 2015, Braskem superior hardness, excellent and weight of the final product. developed and launched the processability and surface finish The HD7000C is recommended HD7000C, an HDPE resin for the of the package. The balance of for packaging liquid foods and Consumer Packaging segment properties of this grade allows powders, and for the cosmetics and designed to produce bottles with Clients to explore new thicknesses personal care market. 90 2015 | Braskem | Annual ReportPVC Window frames Braskem focuses on the since 2013 must meet performance problems such as leaks, wind development of PVC solutions to standards for Buildings (ABNT passage when closed, constant meet the needs of the Brazilian NBR 15575 and NBR 10821). need of repairs, little resistance civil construction market. Among The regulation establishes to break-ins, and deformations the plastic resin options for the norms for ensuring window caused by regular use. segment is window frames, which frame performance and avoiding PVC Pipes In 2015, Braskem announced usability of the city's waterfront. installed on the stretch of sand, the donation of 7,000 meters of The work consists of collection with 11 pumping stations along PVC pipes to the Municipality of and removal, through PVC pipes, the waterfront, interrupting the Maceió, Alagoas. The material will of water from the water table. flow of water currently released be used for drainage and improved The collection network will be into the ocean. All across: innovation at RIOgaleão Airport Partnerships with Clients enabled construction, from foundation to yielding four new floors and 2,000 the implementation of new plastic finishing. Braskem PVC roofing was additional parking spaces. solutions for the construction work at used at the work sites at the Galeão RIOgaleão – Tom Jobim International Airport, an area of 1,046 m². The polyethylene pipes replaced Airport in Rio Janeiro. Braskem concrete structures. A total of supplied the total volume of over The Bubbledeck application, 6,888 meters of piping made up 540 tons of plastic for applications consisting of polypropylene spheres the new drainage system, which such as Bubbledeck, PVC roofing, evenly inserted between two steel now has greater mechanical and and polyethylene pipes. The products meshes, was used in slabs in 44,696 structural resistance with high are part of all stages of airport m² of the airport Garage Building, hydraulic performance. 91 2015 | Braskem | Annual ReportRENEWABLES Five years of Green Polyethylene I'm greenTM In 2015, Plástico Verde completed dehydrating ethanol to change it into green™ are identical to those shown five years on the market, green ethylene, which then goes by the conventional petrochemical. consolidating its presence in to the polymerization units where Braskem has been producing a different segments and for it is turned into polyethylene. The high density (HDPE) and a linear consumers in countries in North sugar cane plastic is then taken to low-density polyethylene from a and South America, Europe, Asia, third generation companies, called renewable source (LLDPE) on an and Oceania. The research for a transformers or converters, which industrial scale since September renewable raw material, capable will manufacture it into products. 2010. Since 2013, low-density of maintaining production quality Since it is made from a renewable Polyethylene (LDPE) from a and providing environmental raw material, Green Polyethylene renewable source was incorporated advantages, began in 2007. Three years later, Braskem invested US$ helps capture and keep the CO2 from the atmosphere, the primary into the portfolio. Also, the vast application alternatives are possible 290 million to inaugurate its Green cause of the greenhouse effect, due to the supply of 30 resin grades Polyethylene plant in Triunfo, representing approximately 2.15 present in these product families. Rio Grande do Sul, Brazil. In this tons of carbon dioxide for each ton The expansion of the green product period, several achievements gave of Green Plastic produced. line strengthened the Company's Green PE strength and space in the commitment to creating value global market. For the market, another positive through sustainable development aspect is that the mechanical and for the sector's production chain, The production process begins with processability properties of I'm its Clients, and society. Sugar cane production chain incentives As part of Braskem's efforts common goal was to promote In addition to technologies to support the industry, the sustainability and innovation enabling sugar, ethanol, and Company integrated a joint in the sugar cane production electricity generation, other initiative for the launch of chain. Together, the companies products originated from sugar the campaign Sugar Cane: worked to educate consumers cane transform the raw material the Culture of Innovation, and influencers about the into goods with more value coordinated by the NGO progress made in recent decades added, such as Green PE used in Solidaridad in partnership with in the entire sugar and ethanol high-tech packaging. Raízen, Braskem, Tetra Pak, and manufacturing process, from Sociana (Guariba Sugar Cane field production to manufacturing Suppliers Association). The packages for everyday use. 92 2015 | Braskem | Annual ReportPartnership with Tramontina The new gardening line by Tramontina, the Sweet Garden collection, uses Green Polyethylene in its products, such as watering cans, shovel supports, and cachepots. Packaging in Green PE PremieR Pet adopted the green Brazil, affiliates of the French in its local portfolio. These plastic for the packaging of its distilled beverage multinational, partnerships demonstrate the Natural Selection PremieR line, also adopted the renewable raw presence of Green PE in industries for dogs and cats. Pernod Ricard material for the lids of the products from different segments. Feiplastic In 2015, Braskem brought its presented the primary applications Braskem joined about 30 product complete product portfolio to for polyethylene, green catalogs from different resin Feiplastic, the largest plastic polyethylene, polypropylene, and families for diverse applications industry fair in Latin America. PVC to various markets, such as developed to meet each Focusing on innovation as a tool agribusiness, construction, retail, Client's needs. for transformation, the Company automotive, and logistics. Overall, Clients Braskem has a portfolio of over 700 Clients from several segments of the conversion industry. Established partnerships include not only the development of new products and solutions, but also the implementation of conversion units close to the Company's complexes, bringing gains to both parties, especially in logistics, as well as generating revenue, jobs, and taxes for regions where these projects are implemented. Visio Program Braskem The Visio program provides and productivity. In 2015, integrated management over 454 initiatives were for and sharing knowledge carried out, with over 197 experience with Clients from all of Braskem's Clients. The goal is to business areas, according to strengthen the relationship CRM (Customer Relationship by generating common Management) records, a tool value capable of increasing used by Braskem. business competitiveness 93 2015 | Braskem | Annual ReportPICPlast Based on its commitment to and participation in fairs of different December 2015, representing over developing the plastic chain and market segments, in 2014, more R$ 80 million invested over the in the spirit of Client service, than 900 Brazilian companies past two years. Braskem advanced together with from the plastics transformation the Brazilian Plastic Industry sector were benefited by actions In 2015, PICPlast also secured a Association (Abiplast) in the Plastic taken by the plan to contribute partnership with Sebrae (Brazilian Chain Incentive Plan (PICPlast). to the development of Brazilian Support Service for Micro and Small industry, involving more than Enterprises), and, beginning 2016, PICPlast is based on three 1,200 professionals who work in an educational and consulting areas: promoting the export the industry. of transformed plastic parts; program on management development will be offered to increased competitiveness and On the pillar of stimulating the stimulate the growth of micro and innovation of the transformation export of transformed plastics, small enterprises operating in the sector; and promotion of the the accumulated volume of plastic production chain. advantages of plastics. Since the incentivized resins reached beginning of the training actions approximately 70,000 tons in Industry Fund The Industry Fund, one of significant results since its The amount collected in 2015 PICPlast's operations, created launch. By December, the reached about R$ 2.7 million, to fund promotion actions plan had already received the which will be used during valuing the advantages of support of 317 companies from the next few months toward plastic, completed one year the plastic industry throughout communication, education, in December and collected Brazil. recycling, and technical studies. Let's Talk Packaging Braskem's brand content platform advantages of using plastic development of innovative coordinated by the Company's packaging, trends, and market solutions for plastic in packaging. Packaging Committee is an design innovations. The platform initiative created to publicize the stimulated brainstorming and For more information, visit Braskem > Clients 94 2015 | Braskem | Annual ReportLife Cycle Assessment Braskem leads industry initiatives would be avoided–equivalent methodology developed by to strengthen the environmental to emissions from 222,000 km the International Council of attributes of plastic. The work of car travel -, in addition to a Chemical Associations (ICCA), is developed using Life Cycle volume of acid rain sufficient in which eight applications are Assessment (LCA) studies, a to fill 1,262 Olympic-sized assessed comparing plastic technique used since 2005 to pools. The gains shown are to its substitutes. The results evaluate environmental aspects related to global warming and showed reduced greenhouse and the potential impacts toxicity. associated with the product. It gas (GHG) emissions in the life cycles of all plastic includes the stages from the • Assessment of the best applications studied. removal of raw material from process for Urban Solid Waste • A comparative study between nature to the disposal of the disposal to aid Braskem's disposable and reusable final product. This analysis positioning. The Life Cycle cups demonstrated that allows Braskem to continue Assessment compares the a reusable cup washed increasing its understanding of landfill and incineration manually consumes around the environmental impact of its solutions, revealing trade-offs 1.2 L of water, a consumption products during their life cycle between the two alternatives. five times greater than the to make business decisions. dishwasher. On the other hand, • A comparative study between a disposable cup consumes In 2015, the Company concluded traditional promotional bags only 26 mL throughout its 11 studies and an inventory of and I'm green™ Green entire life cycle, including the 85% of the plants operating in Polyethylene for the transport recycling process. Brazil. Among the main results for of 14-liter volumes that hold up the year are: to 10 kg. Both were classified The sustainability of plastics as • Benefits of packaging for paint printing area. The result lives is a strategic aspect for the in the same price range and a solution for improving people's produced from polypropylene showed that the I'm green™ Company and in the interest of compared traditional Polyethylene option has better its stakeholders, especially its packaging. The study showed environmental performance in Clients. The life cycle concept is that if one million liters of the majority of categories of understood more and more by paint were packaged in 3.6 impact evaluated. the Company, due to the growing L plastic packaging rather involvement of the Company's than traditional packaging, • Emissions Avoided by business units in these studies. emissions of 58 tons of CO2 Plastic, a project using the The Life Cycle Assessment studies are available upon request through e-mail acv@braskem.com 95 2015 | Braskem | Annual Report LCA Network Since 2013, Braskem has held the Network during 2015 are: By the end of 2015, a total of the presidency of the Brazilian participating in the book LCA 24 companies participated in the Corporate Network of Life Compendium - The Complete Brazilian LCA Network. Among Cycle Assessment. It seeks World of LCA, with a chapter them are Arcelor Mittal, Basf, to guarantee the continuous about the LCA Network; in the Braskem, Boticário, Danone, development of the LCA tool, as seminar Brazilian Life Cycle Duratex, Du Pont, Embraco, well as the growth of the national Assessment Program and National Embraer, Embrapa, GE, Klabin, database and the dissemination Public Policy; and in a workshop Malwee, Natura, Oxiteno, of the concept in the Brazilian developed in a partnership with Pepsico, Petrobras, PQS, Raízen, business environment. Among UNEP and IBICT for Life Cycle Tetra Pak, Vale, Volkswagen, the activities carried out by Inventory Training. Votorantim Cimentos, and 3M. For more information: Braskem > Life Cycle Assessment www.cebds.org > Working Goups 96 2015 | Braskem | Annual ReportSOLUTIONS FOR SOCIETY Concern to ensure a positive impact on the lives of people and communities is part of Braskem's business and sustainable growth strategy Braskem seeks to grow in the creation for society involving enabling better accessibility and market by producing a positive more sustainable processes, quality of life. It is what drove legacy for society. In this regard, resources, and products for an the Company's support for the the Company develops a set increasingly better life. Brazilian Disabled Athletes Team, of social and environmental for disabled athlete Alan Fonteles responsibility initiatives, carried Braskem's purpose materializes in – world record amputee sprinter out in partnership with different innovative incentive projects for of the 100m and 200m –, and civil society agencies, and increasing the universe of plastics for triathlete Adriele Silva – gold makes industrial commitments applications. The prostheses medal winner of the London to creating sustainable solutions used by athletes with disabilities Games, in 2012, and first and only in its production chain. These are an example of how plastic amputee in Brazil to participate fronts form an umbrella of value may contribute to solutions in the triathlon for the disabled. 98 2015 | Braskem | Annual ReportClimate Change G4 EC2 | G4•EN3 | G4•EN15 | G4•EN16 | G4•EN17 G4•EN18 | G4•EN19 | G4•EN20 | G4•EN21 GLOBAL COMPACT PRINCIPLE 7 Discussions on the global agenda in biopolymer (Green Plastic) categories in Scopes 1, 2, and 3 about climate change represent production using sugarcane and applied to 100% of the Company's a structural pillar of Braskem's has been progressively increasing operations. In 2015, considering sustainable development actions. its consumption of natural gas, only Scope 1 emissions, directly The Company has made a constant which has less GHG emission managed by Braskem, the actions effort to diversify renewable raw fuel when compared to the crude and initiatives implemented materials with the purpose of oil distillate. progressively reducing the level of totaled a cumulative reduction of about 18% compared to the base greenhouse gas (GHG) emissions. Braskem's corporate GHG year of 2008. In this regard, Braskem is a leader emissions inventory includes all GHG EMISSIONS - SCOPE 1 TCO2e/T OF PRODUCT SCOPE 1+2 TCO2e / T OF PRODUCT 18% 0.659 0.642 0.577 0.561 0.581 0.578 0.564 0.540 0.721 0.705 16% 0.640 0.628 0.630 0.630 0.615 0.604 2008 2009 2010 2011 2012 2013 2014 2015 Evolution of carbon intensity (scope 1 + 2) 2008 2009 2010 2011 2012 2013 2014 2015 99 2015 | Braskem | Annual ReportIn 2015, carbon intensity (scopes 1 the operation configuration to note that some absolute + 2) show a cumulative reduction of boilers with a consequent reductions are associated of approximately 16% compared 8% reduction in consumption with less consumption due to to the base year 2008. Among the of the liquid fuel pool. Also, shutdowns for maintenance or actions that most contributed to this consider the reduction of loss operation with a reduced load result are the energy optimization to flare and the optimization of caused by trade restrictions. initiatives at complexes and the fuel matrix. other plants, aligned with energy If considered the differences in efficiency indicators. • At the Polymer plants, there absolute values, between actual was reduced consumption of emissions between 2009 and 2015 The initiatives that most contributed some fuels and losses to the in comparison to the baseline year to the year's results were: flare. Additionally, there was of 2008, the aggregate emissions • In the UNIBs, reduction in scope a catalyzer change at one 1 due to the implementation plant, from a particular class of energy efficiency projects, of product that caused the avoided totaled 5.3 million tons of CO2e, which to planting 35 million trees in is equivalent with emphasis on maximizing reduction of 60% in propane the period. efficiency, increased burning in the flare for these productivity in furnaces, and resin grades. It is important Managing indirect emissions Braskem has been carrying out continuous improvement process efficient risk management and the GHG emissions inventory from in reporting scope 322 emissions, opportunities for the chain as a scope 3, indirect emissions, since after 2015, there was an increase whole. Actions toward awareness, the year 2011, and has evolved its in reporting categories associated encouraging emission inventory actions and initiatives to reduce with the transport of waste, raw reporting and identifying risks these emissions, strengthening materials and other. For more and opportunities are carried out the engagement of the chain detailed information about these annually with the support of CDP and the internally involved areas, emissions, the data is available Supply Chain. In 2015, the CDP such as personnel transportation, on the CDP Investor website. published the ranking of Suppliers product transport, Information in Latin America: five of the ten Technology, raw materials, and Braskem does not have best results in the Transparency other. During the year of 2015, mandatory requirements for its category belonged to Braskem's Braskem's emissions from scope Suppliers; however, for four years Suppliers, and in the Performance 3 totaled 15.8 million tons of CO2e, reporting the 15 categories of all industrial operations. In the the Company has developed list there is only one vendor from voluntary engagement initiatives Latin America, who is also one of as a way of obtaining more Braskem's Suppliers. 22 Reporting categories for Scope 3 emissions, according to standards defined by Corporate Value Chain (Scope 3) Accounting and Reporting Standard, published by GHG Protocol 100 2015 | Braskem | Annual ReportNUMBER OF SUPPLIERS INVITED X ENGAGED 182 105 Invited Engaged 31 13 2012 38 17 43 26 2013 2014 2015 The Company also holds to reducing greenhouse gas ser verde”), the Company has a prominent position international debates in to emissions. Since 2009, the year been working in the market the Braskem's Manifesto for following the voluntary goals for define policies aligned with Climate Change was published reducing the intensity of carbon the industry's commitment (“É preciso amadurecer para emissions. Carbon pricing During COP-21, Braskem model of operations toward future impacts, identifying the contributed to advances in the achieving these goals, projects' positive and negative local and global agenda facing Braskem continues investing in contributions. the climate change challenge innovation technology focused The Company gave particular on creating products with a Furthermore, in the last attention to the debate on smaller carbon footprint, as five years, the Company a pricing model capable of well as supporting Clients and has invested close to $ 1.5 encouraging companies from partners when developing million in information systems diverse sectors to reduce solutions that reduce for greater traceability and their levels of greenhouse gas greenhouse gas emissions in reliability of the carbon (GHG) emissions. Also, the the areas of transportation, inventory of its operations. Company joined two initiatives water efficiency, agriculture, It is worth noting that Braskem toward a low-carbon economy: and others. in Brazil, the Open Letter on also actively participates in the Emissions Trading Simulation, Climate Change, coordinated In 2015, the Company from the Companies for by the Ethos Institute, and initiated a work platform Climate Platform, a helpful the Movement of CEOs for with the purpose of aiding carbon market experience for Climate, organized by the its investment decisions. the debate and generation World Economic Forum. The tool will calculate the of knowledge, increasing virtual cost of carbon as an corporate contribution to As an example of the anticipatory way of regulating government proposals. 101 2015 | Braskem | Annual ReportIn 2015, the last greenhouse gas (GHG) emissions inventory published by Braskem obtained, for the 5th consecutive year, the GOLD Category in the Brazilian GHG Protocol Program. CDP also recognized the Company as the best carbon manager in Brazil Risks and opportunities To ensure competitiveness and the plants in Brazil, the United recommendations. In São Paulo, contribute to the emerging of States, and Germany until 2040. within a region called The ABC, a new low-carbon economy To achieve this, the Company Braskem's units use reclaimed development model, Braskem has relied on two external partners: wastewater as feedstock. The been working on a comprehensive the National Institute for Space resource is supplied by Aquapolo, adaptation plan on five fronts – Research, for discovering and the largest Company of its kind in internal engagement, external interpreting data for future climate Latin America, with a reuse rate coordination, acquisition and scenarios, and the Getúlio Vargas of 97% and capable of processing interpretation of information, and Foundation, for methodology 1000 liters per second. Braskem an increase in risk management –, support. all the while incorporating climate consumes 65% of Aquapolo's production capacity, liberating for variables into its strategic plan. The reuse of water as a mitigation human consumption enough raw initiative and a viable alternative water to serve 500,000 people. A significant milestone of this during water shortage periods, Note: For more details about plan in 2015 was identifying practices already ongoing at Braskem's climate opportunities and prioritizing potential climate some of the Company's plants, and risks, the data is available on opportunities and risks at all were among the study's primary the CDP Investor website. 102 2015 | Braskem | Annual ReportDeveloping solutions Braskem is permanently focused strengthening its strategic vision encourages entrepreneurship and on improving people's lives through by launching and consolidating new applications development that sustainable solutions of chemicals two important projects. Wecycle, have high social and environmental and plastics. In 2015, the Company focused on plastic waste impact and use plastic as a raw took significant steps toward recycling. And Braskem Labs, that material. Wecycle: responsibility for the product and post-consumer use In 2015, Braskem launched processes and social responsibility Wecycle, a business platform actions that focus on recycling seeking to increase plastic and enhancing the image of waste recycling in different plastic waste. sectors of the economy through partnerships with organizations The highlight of the launch was that already operate or are an initiative developed with interested in working in Starbucks® Brazil throughout the this segment. year. On an experimental basis, the project made use of discarded levels of emissions during the The platform also strengthens waste – plastic cups and coffee production of materials used in Braskem's commitment to Brazil's grounds - to manufacture Starbucks® operations. Starbucks plastic value chain, to innovation, wastebaskets for Starbucks' stores in Brazil were the first in the technology and sustainability. Its shops. The recycling process used world to reuse waste discarded scope of operation ranges from the Braskem's Green Polyethylene by customers and employees creating products that use post- I'm green™ to manufacture as a source of recyclable raw consumer recycled material to these bins, reducing plastic waste material for the production of the certification or qualification of disposal and generating lower wastebaskets. 103 2015 | Braskem | Annual ReportWecycle closes the virtual consumer disposal of bulk bags, drums, and promote the progressive increase of cycle and should develop further in disposable water cups. package recycling and provide, now 2016 through new partnerships with In the same year, Brazilian institute in its first phase, a 22% reduction in other institutions. Plastivida signed an industry the products disposed of in landfills. agreement regarding the National Also, in 2015 Braskem made efforts Solid Waste Policy (PNRS), a law In 2016, the Company expects to toward increasing recycling of waste regulated in 2012 establishing seek innovative recycling projects in generated by its operation through shared liability for Urban Solid Waste the market and continue to invest in a pilot project encouraging the management. Once the commitment partnerships with major institutions. collection, separation, and correct is signed, the agreement should Braskem Labs: encouraging innovation with social and environmental impact In 2015, Braskem created developed a training program to improving people's lives. Braskem Labs, an incentive for selected entrepreneurs As a result of the first edition, program for entrepreneurs with with projects in areas such as Braskem Labs had 159 projects innovative solutions that improve construction, health, culture, and registered and 19 selected, and people's lives through plastics. others. In partnership with Endeavor, the mentoring process included 36 Braskem Leaders and 33 an international NGO that offers The project came from Braskem's Endeavor mentors. support to entrepreneurs, Braskem belief in increasingly using plastics To encourage the entrepreneurial spirit in Brazil, Braskem Labs seeks to fill in the gaps of knowledge and experience in the selected projects, strengthening their processes of creation, innovation, and management During 45 days, selected companies that provides convenience and were able to improve their hygiene for patients and avoids operations and produtcs through contamination of samples for individual and collective mentoring laboratory testing – which is now with business experts, guided produced with Green PE after by learning paths customized for participating in Braskem Labs – their specific needs. Out of the and B-Rap, plastic boxes used for 19 participants, two projects were storing rainwater that have the awarded support for effective potential of replacing concrete development of their businesses: structures in civil construction. ColOff®, a toilet seat covering Next steps In 2016, there will be a second edition of Braskem Labs. In addition to proposals using plastic for the development of social and environmental solutions, the program will also accept projects focused on chemistry. A special category dedicated for projects fighting the Aedes aegypti mosquito will also be available. 104 2015 | Braskem | Annual ReportSocial and Environmental Development G4•EC7 | G4•EC8 G4•SO2 Improving people's lives through projects carried out by the creation of new projects that sustainable solutions of chemicals Company with communities in combine social impact and market and plastics is the main positive the vicinity of its production units, development and also with the effect generated by Braskem's cascading to the regions where broad dissemination to Leaders operations in Brazil and worldwide. they operate. Materializing this objective is and Team Members. Today, they are organized around a social directly associated with social In 2015, this strategy was operations strategy as shown in and environmental responsibility strengthened through the the chart below: Social Action Strategy BOOST HUMAN DEVELOPMENT Stimulate the growth of people that form our communities PROMOTE SOCIAL AND ENVIRONMENTAL DEVELOPMENT THROUGH CHEMICALS AND PLASTICS Strengthen the social and environmental contributions of the cycles of our main products PROGRAMS STAKEHOLDER COMMUNITIES SURROUNDING COMMUNITIES CHEMICALS AND PLASTICS CHAIN PLASTICS AND CHEMICALS AS A SOLUTION PROJECTS Braskem Theater Award Braskem on Stage Award Braskem Environmental Stations Forest Factory Institute Lagoa Viva Environmental Education Program Innovating to Build ser+ realizador Edukatu Braskem Labs Fewer losses, more water 105 2015 | Braskem | Annual ReportEvery project supported by development of communities, to address these strategic Braskem must address at least bring together the Company and objectives, its components and one of the two social causes its stakeholders, and to increase characteristics are assessed supported by the Company: the level of familiarity and annually with the help of a to generate social impact, to visibility of its operations. tool that allows for the precise strengthen its reputation as a diagnostic of the situation of Company that contributes to the To determine if the projects each project. EVOLUTION OF THE ADHERENCE OF BRASKEM'S PROJECT PORTFOLIO TO THE SOCIAL OPERATIONS STRATEGY Number of projects 31 20 12 11 11 Adherence* 6.4 7.2 Change of metric 8.4 8.7 8.9 2011 2012 2013 2014 2015 * Adherence not evaluated for projects in the process of construction or discontinuation. Investment in social responsibility projects G4•EC7 | G4•SO1 | G4•EN28 In 2015, Braskem and its Team Members invested R$ 25.8 million in social, environmental, cultural and sports projects in Brazil as per broken down numbers below: INVESTMENT GOVERNMENT-INCENTIVIZED SPONSORSHIPS Private Social Investment (PSI) Projects of public interest: R$ 11 million in tax incentives projects: R$ 5.4 million (R$ 2.2 million in Income Tax (IR) and R$ 8.8 million in ICMS (sales tax), in addition to R$ 697,000 as direct funds as consideration. 23 An additional R$ 279,000 in Income Tax is already recordedin the total amount for the Odebrecht Foundation's Tribute to the Future program. 24 Another R$ 660,000 was invested as Braskem's consideration, already recorded in the total for the Private Social Investment projects. 106 2015 | Braskem | Annual ReportODEBRECHT FOUNDATION INVESTIMENT A total of R$ 7 million was Investment in a recycling project donated by Braskem to the through PICPlast: approximately PDCIS and R$ 1.59 million R$ 100,000. jointly by Braskem and its Team Members (subject to fiscal benefit) for the Tributo ao Futuro (Tribute to the Future) program. In addition to direct investments by Additionally, Braskem and almost and social inclusion. On average, Braskem and its Team Members, 1,450 of its Team Members made R$ 5 million is substantiated the Private Social Investment donations through a program from every year. (PSI) projects in Brazil raised over the Odebrecht Foundation called R$ 7 million in 2015, with the "Tribute to the Future" - donations In Mexico, R$ 2.1 million (US$ participation of several partners, to the Municipal Funds for the 629,500 / MX$ 10 million) were among which were Ambev, Bunge, Rights of Children and Adolescents, invested in production projects. Gerdau, municipal governments, which are entitled to be deducted In the United States, Braskem and SEBRAE (Brazilian from income tax. The program invested more than R$ 667,700 Service to Support Micro and supports educational and social (US$ 200,000) in philanthropic Small Enterprises). projects based on the Charter for donations, benefiting more than 30 Children and Adolescents (ECA - in organizations or programs focused In partnership with the Odebrecht the Brazilian acronym), Law No. on the benefits of plastics in the lives Foundation, Braskem supports 8,069/90, and are conducted by of people and the field of sciences, the PDCIS - Program for the institutions that integrate the technology, engineering, and Development and Integrated Governance Pact of the Odebrecht mathematics. The amount invested Growth with Sustainability. Its Foundation, aiming to contribute to adds to the hundreds of hours challenge is to establish a social, the positive transformation in the of volunteer work by Braskem's economic, and environmentally lives of children and adolescents. Members in local communities. sustainable development model, One of the greatest contributions retaining young people in the Since 2013, part of the Private was made to the United Way, an fields, integrated with their family Social Investment (PSI) by Braskem organization that has existed for units in their communities. In the and Odebrecht Foundation is over 125 years and that provides scope of this program, created used to substantiate the BNDES support to local communities. Every by the Odebrecht Foundation, Social Subcredit, a mechanism year, Braskem, as well as numerous initiatives were carried out in 350 that allocates 0.05% of the other organizations throughout the communities, directly benefiting organization's financing (equal to United States, hold campaigns to more than 30,000 people, and or greater than R$ 100 million) to encourage their Team Members to indirectly, another 285,000. initiatives that generate income contribute to the program. To learn more about the programs from Odebrecht Foundation, visit Odebrecht Foundation 25 Donations can be deducted from Income Tax 26 Average exchange rate in 2005 was US$ 1.00 = MX$ 15.8846 and US$ 1.00 = R$ 3.3387. Source: Explanatory notes from the administration for the financial statements on December 31, 2015 (amounts in thousands, except when stated otherwise) page 13, section c. Effect of exchange variation. 107 2015 | Braskem | Annual ReportPRIVATE SOCIAL INVESTMENT PROJECTS Braskem's Private Social Investment projects benefited more than 100,000 people in 2015. Among them we can highlight the projects: It is a collaborative initiative Through investments in waste for recycling (12% of the promoted by Braskem in equipment and infrastructure of total refers to plastics produced partnership with Ambev, Bunge, the screening units, training and by Braskem: PP, PE and PVC). Of Gerdau and Sebrae whose goal personalized consulting, as well as the total number of people, more is to increase recycling of post- a stimulus to work in a network, than 1,369 received monthly consumption waste in Brazil, the waste pickers of recyclable guidance, and 70% of them combining the promotion of material managed to increase managed to increase income. the supply chain efficiency their productivity and income. The ser+ realizador project in recycling to the inclusion attracted workers committed and social and economic In 2015, a total of 70 to the recycling cause in Brazil, development of waste pickers. cooperatives, that gather 3,538 and this integration allows for Braskem's contribution is mainly pickers, were benefited by the larger and more structured geared toward the development project. Of this amount, 48 investments: in 2015, the of waste pickers and their social received guidance and managed partners invested more than R$ inclusion. to send more than 25,000 tons of 5 million in project initiatives. 108 2015 | Braskem | Annual ReportHighlights of the ser+ realizador program in 2015 Parceria pelo Meio Ambiente Champions in increased Support to municipal govern- (Partnership for the income in the state of Bahia: ments: Braskem has supported, Environment): together with the 33 members of the cooperative since 2010, the municipal waste the donation of 7,100 m of PVC CAMAPET, a cooperative located management program called Todos piping to drain rainwater from the in the city of Salvador, closed the Somos Porto Alegre (We Are All Maceió, AL beachfront, Braskem year 2015 with an increase in Porto Alegre), created to comply also contributed to the project income of 72% over the average with Law No. 10,531, which estab- Praia Viva through the project for 2014. This significant increase lishes the prohibition of traffic of ve- ser+ realizador, delivering 100 occurred after members of the hicles drawn by people and animal sets of double waste collectors cooperative organized themselves in Porto Alegre by 2016. (each comprised of one bin for and began charging for waste To achieve the objective of socially organic material and another for collection services in residential including those who had their recyclable waste), totaling 200 condominiums and large wagons removed from circulation, plastic bins to be installed on the companies such as Coelba and efforts were joined between public beaches of Pajuçara and Ponta Infraero. Verde, important tourist and authorities, civil society, and the private sector. During the first phase leisure area for the capital city. Collection at the Triunfo, of the program, social educators City officials are responsible for RS Petrochemical Complex: identified the primary needs of collecting waste from the bins and with the Maintenance Shutdown participants and sent those who discharging the material to big of plant 1 of UNIB, RS, an wished to change profession to containers on the beach where opportunity appeared to collect a training course - and those who the cooperative supported by significant amounts of solid waste wanted to continue in the recycling the ser+ realizador performs the to be sent to the AECO shed, area received specialized training. In collection. the city's Recycling Association. the second phase of the program, Currently, in addition to UNIB 2, initiated in 2015, the Screening Increase in income with other Braskem units in the state Units where the cooperatives recycling of electronics: of Rio Grande do Sul, such as work, underwent physical and members of the recycling PP1, PE4 and PE6, also sent their administrative restructuring. The cooperatives in the city of Maceió solid waste to the Association, third stage of the program, which are benefiting from training and with transportation paid for by shall gain momentum in 2016, will qualification on the segregation the city government. Through focus on environmental education, of electronic scrap. Knowledge this initiative, other companies raising awareness among society about electronic components and of the petrochemical complex about the importance of recycling. the correct extraction of parts such as White Martins and the Considering the success of this has yielded an increase in income State Sanitation Company of Rio initiative, which in 2015 supported of 56% in the sale of these Grande do Sul (Corsan), in Brazil, more than 1,900 pickers and sent products, since after receiving also started to send their waste to more than 10,000 tons of waste for training they are able to better AECO. identify components and, what recycling, Braskem promoted the structured management of post- was once sold for R$ 7 per kilo, As a result of this coordination, the consumption and waste in other can now be sold for as much as volume of materials sent by the communities near its operations. In R$ 90 per kilo. In addition to Braskem plants to the Association 2014, with the support from Braskem, training courses in partnership can be highlighted: the cooperative Mãos Verdes with SEBRAE, Braskem donated between November and December (which helps with management toolkits and specific equipment for 2015, a total of 4.9 tons of of the Todos Somos Porto Alegre this activity, thereby increasing plastic and 5.6 tons of paper and program) approved with the workplace safety for the members cardboard were sent, with benefits Salvador Municipal Government of the cooperative. to the workers in the shed. and other organizations interested 109 2015 | Braskem | Annual Reportin the Program for the Productive Consortium of the Greater ABC is the way to join all of the links Inclusion of Pickers of Recyclable Region established a partnership of this chain. In 2016, the focus Materials and Implementation to plan and restructure the post- of partners and the Mãos Verdes of Selective Waste Collection in consumption waste and recycling Cooperative in the ABC region will the City of Salvador - in 2015, management system for the seven be on completing the diagnostic a consultation letter to obtain cities that comprise the region. and delivering the consultation financing for the initiative PICPlast is an initiative that aims to letter to BNDES, seeking from BNDES. Also in 2015, PICPlast contribute to competitiveness and sponsorship for the actions that (Incentive Plan for the Plastics growth of plastic converting; and will be conducted in the coming Chain) and the Inter-Municipal the support to waste management years by the municipalities. 2016 In 2016, the idea is to institutions. As one example, assesses the development of strengthen the ser+ realizador the cooperatives will be co-ops in various fronts (legal through new partnerships evaluated through a diagnostic requirements, equipment, and to promote the sharing of tool of the PEX excellence infrastructure, leadership, best practices among partner program, from Ambev, which training, health, among others). The first online learning network On its online platform (www. In 2015, Edukatu doubled the in Brazil, which promotes edukatu.org.br), the initiative number of participants, reaching the sharing of knowledge offers access to content on 20,000 registered in the portal, and practices in conscious conscious consumption and from more than 2,000 schools consumption and sustainability sustainability, and makes in 27 states. Of this total, among teachers and students in available to students and more than 7,000 are directly grade school throughout Brazil. teachers materials about issues involved in intervention projects Advocated by the Akatu Institute such as recycling, climate in their school communities, in partnership with Braskem, the change, mobility, water, use mobilizing approximately 43,000 project has the support from HP, of natural resources, and people around the conscious Cargill Foundation, Costa Brava, sustainable food, in formats and consumption issue. KPMG, Grupo Mais Unidos, and language that are compelling to institutional support from the the project's audience - games, Among the main highlights of the Ministry of the Environment and videos, infographics, primers, project for 2015, there are: the Ministry of Education. and classroom plans. 110 2015 | Braskem | Annual Report Growing visitation: the enabled through the promotion disposal. Differently from the monthly average page views was of a pilot project together with version in the previous year, it approximately 77,000 in the year, the São Paulo Municipal Board involved schools throughout the up 83% when compared to the of Education. Together, the two Country. Three teachers - one 42,000 page views in 2014. initiatives resulted in more than from São Paulo, and two from Personal mobilization: teachers and students registered. challenge, which reached more 50% of the total number of Alagoas - were awarded for this developed with support from Braskem, direct visitation to than 8,000 people in different regions. The winning teacher, schools and teachers was National challenge "The Maria Ester Aluizo Nascimento, maintained in the state of Nature of Things": Edukatu, from EMEF Octávio Pereira Alagoas, in partnership with the in partnership with Braskem, Lopes, in São Paulo, worked Lagoa Viva Institute. The activity promoted a campaign called with elementary and middle was also reinforced in São Paulo "A Natureza das Coisas 2015" school students on excessive in the first half of 2016, with ("The Nature of Things 2015") to consumption and correct three regional departments of the discuss and analyze the impact destination of waste and was city (Jaçanã/Tremembé, Campo of the life cycle of products, awarded a trip to Itacaré, BA. Limpo, and Capela do Socorro), from production and use, up to 2016 In 2016, Edukatu should hygiene and water prices animations, texts, and class continue to escalate its results have been available on the programs), encouraging those of the work with local partners, platform since the beginning who interact with the platform aiming to decentralize activities of the 2016 school year. In to learn about the novelty and to produce specific tools all, approximately 20 new bits and remain engaged through for mobile platforms. New of content will be published the use of new materials and content about recycling, (between infographics, games, resources. 111 2015 | Braskem | Annual ReportInstituto Fábrica de Florestas 1,000 people were trained, restinga vegetation), in addition - IFF (Forest Factory Institute) and 16,739 were alerted about to providing seedlings of native contributed towards the the value of forests. More than plants used for the reforestation construction of environmentally 116,000 seedlings were produced, of the northern coast of the responsible communities through and approximately 39,000 were state of Bahia. In 2015, the the expansion, recovery, and planted and are being monitored. project "Verão Eco Parque maintenance of green areas, along There was a 53% reduction in Sauípe" promoted adventure with integrated environmental the number of seedlings planted activities inside the park, such education. The organization in 2014, resulting from a general as climbing walls, zip line, kayak, operates in the states of Bahia, decline in demand for the planting and bicycles, among other Rio de Janeiro, and São Paulo, services in rural and urban areas. educational activities such as a and is maintained by Braskem, Among the main highlights of the visit to Braskem's Environmental Cetrel - Odebrecht Ambiental, program for 2015, there are: Station, and the Museum of and COFIC (Camaçari Industrial Natural History. There were more Development Committee). 1 million seedlings produced: than 2,800 visitors during the since 2008, IFF has produced three months of the project. The work conducted by IFF is more than 1 million seedlings, developed together with the 600,000 of which have already Financial Sustainability: IFF Community, which is trained to been planted. Furthermore, close the year with an achievement collect seeds, produce and plant approximately 7,000 people have that contributed to the financial native seedlings, and maintain been trained and an additional balance of its activities - as an planted areas. The project 100,000 people alerted about OSCIP, it was exempted from promotes the Environmental the importance of environmental the cost of an Operating License. Education Program (PEA), by preservation. training teachers and providing Adding this benefit to previous achievements such as exemption guided tours of its Seedling Verão Eco Parque Sauípe: this of IPTU (property tax) and ISS School for students of public and program protects a 66-hectare (service tax), IFF managed to private schools. area in the transition region of save R$100,000. Throughout the year, more than Rainforest biome (forests and two ecosystems of the Atlantic 2016 For 2016, IFF plans on addition to reinforcing partnerships revenue will still be explored, strengthening its financial with public authorities and with the such as the recovery of springs sustainability, focusing on the support of companies that need to mitigate the water crisis and donation of seedlings through to comply with legal reforestation the achievement of carbon credits the hiring of planting services, in requirements. Other sources of from the planted areas. 112 2015 | Braskem | Annual ReportLocal initiatives Pescadores de Mel (Alagoas): of Maceió, Barra de São For architects and engineers, created in 2006 and reactivated in Miguel, Marechal Deodoro, and specialization courses are 2011, the project is the result of Coqueiro Seco. a partnership between Braskem offered, and for job site workers, courses on professional initiation and Uniprópolis (Union of Red Inovar para Construir (Rio are made available focusing on Propolis Producers in the State of de Janeiro): developed in low-income young adults in Rio Alagoas) for the social inclusion partnership with the FIRJAN de Janeiro. In 2015, Inovar para of fishermen in the communities system, the project Inovar para Construir created, in partnership of Mundaú-Manguaba through Construir (Innovate to Build) is an with Braskem Clients, five courses training on beekeeping. All honey initiative that aims to disseminate (involving 17 solutions using and red propolis produced by solutions using plastic for civil plastic), which are available on the fishermen are processed by construction. These solutions SENAI's product portfolio. Also Uniprópolis for marketing, and the are communicated via a virtual in 2015, a total of 19 architects propolis has a global competitive platform (http://www.firjan.com. and engineers, and 17 worksite advantage of the geographic br/visaotecnologica), which is workers were trained in the certification issued by INPI. In dedicated to promoting innovative pilot courses. 2015, the project benefited 79 solutions for all industry sectors, fishermen in the municipalities starting with civil construction. 113 2015 | Braskem | Annual ReportGreen belts G4•SO2 In all, 29 of the 40 Braskem units Fundação Zoobotânica - the of Research") for schools, libraries have a green belt - a green area continuous monitoring of local and environmental organizations surrounding the plants that offer an wildlife and flora and conducts in the region, serving as a source extra level of protection, preventing guided tours for students aiming to of research and teaching support. the approximation of people and promote environmental education In the District of Pontal da Barra, reducing exposure to risks. The through games and workshops adjacent to Braskem's chlor-alkali greenbelt also protects species of among the native woods. There unit, in Maceió, AL, the green the local wildlife and flora and helps were more than 2,300 visitors in belt is a space for studies, visits, improve air quality. 2015, in addition to the distribution and development of social and of the book "Habitantes da environmental projects. Recognized Covering an area of 68 hectares, Estação Ambiental Braskem - by UNESCO as an Advance Post the green belt surrounding the 25 anos de pesquisa” (in loose of the Atlantic Forest Biosphere, Triunfo Petrochemical Complex translation: "Dwellers of Braskem in 2015, more than 3,800 people carries out - with support from Environmental Station - 25 Years visited the location. Safety and communication with communities Braskem has open communication program is APELL (Community the port of Aratu), more than ten channels to all communities where Alert and Preparedness for Local years ago, the six companies that it operates. In addition to a toll- Emergencies), implemented in own the pipelines signed a Term free number and the ombudsman's Maceió 15 years ago to train and of Adjustment to enable Shared office, the Community can talk prepare public agencies, members Management to minimize failure to the Company through regular and residents of the vicinity in case and seek continuous improvement meetings, visitation programs, of emergencies. Every year, two in prevention and control of risks. training, and interface with public drills are conducted: one focusing In the ethanol pipeline (a 475-km authorities - initiatives which on highway accidents and the other pipeline that stretches through are commonly promoted by with a focus on safety in industrial the states of Alagoas, Sergipe, Community Consulting Councils in processes. each location. and Bahia), safety information is conveyed to communities through For the pipeline (connecting the theater plays as a means to ensure One of the highlights of the Camaçari Industrial Complex to adhesion and learning. For more information, visit Braskem > Society 114 2015 | Braskem | Annual ReportVOLUNTARY COMMITMENTS G4•14 | G4•15 | G4•16 Braskem's sustainability prin- Throughout the years, Braskem Change, of the United Nations, was ciples, which are incorporated has been expanding the level of held in Paris France. The Company, into the operating processes involvement in these forums, the through several forums and mul- and in the fabrication of the relevance of its proposals, and the tilateral programs, participated in Company's products, also ex- scope of its voluntary commitments support of proposals defended by tend to projects carried out aiming to streamline the transition the Brazilian government. "externally". These initiatives process to a low carbon economy are conducted as part of the that is competitive, responsible, As a member of the Brazilian voluntary commitments sig- and inclusive. ned by the Company under Network of the UN Global Compact, the Company had an active con- the governance agenda of the Concerns with climate, the impact tribution in the construction of international organizations for on global warming, and the need to Sustainable Development Goals sustainable development and implement a carbon pricing market (SDGs), which will enter into force materialized through participa- were some of the aspects with with goal established to be fulfilled tion in corporate forums with greatest highlights in Braskem's by 2030 and replace the Millennium specific competencies within operations in 2015; the year when Development Goals (MDGs), the economic, social, and envi- the 21st edition of the Conference set up for the period of 2000 ronmental pillars. of the Parties (COP-21) on Climate to 2015. Brazilian Corporate Council for Sustainable Development (CEBDS) In 2015, Braskem was one of the Business Council for Sustainable in relevant aspects for Braskem is first companies to adhere to the Development (WBCSD), which has sustainability agenda during the coalition "We Mean Business". In almost 60 national and regional COP-21 including pricing of carbon Brazil, it is supported by CEBDS, councils in 36 countries in 22 and use of an energy matrix from an association that gathers 70 industry sectors, in addition to 200 renewable sources. In 2014, corporate groups in Brazil acting corporate groups operating in all CEBDS assumed coordination of as representatives of the World continents. The coalition advanced the Brazilian Network for LCA. Ethos Institute - Companies of the Climate Forum In August 2015, four months conducted by the Ethos Institute, networks the production and before COP-21, Braskem expanded replaced the commitments marketing of products from its voluntary commitments assumed by the companies in the illegal deforestation or illegal towards a reduction in the level previous Open Letter, in 2009, exploitation. Additionally, the of greenhouse gasses by signing in addition to proposing new document suggests to the the Open Letter to Brazil on initiatives. Companies signatory Brazilian government the creation Climate Change. The document, to the document agreed to reduce of a multilateral mechanism for produced with the Companies of greenhouse gas emissions and the pricing of carbon and the the Climate Forum organization increase their energy efficiency, strengthening of mechanisms to and whose executive secretary is as well as eliminate from its promote innovation. 116 2015 | Braskem | Annual ReportFundação Getúlio Vargas - Companies for the Climate Since 2012, Braskem has reduction of greenhouse gas INPE (National Institute for Space participated in the initiative emissions, management of climate Research). Also, as a way to take Companies for the Climate, a risks, and proposal of public policies the lead in the process to develop corporate platform created by the concerning climate change. In this a carbon pricing market, the Center for Studies on Sustainability aspect, Braskem made substantial Company participated, in 2015, in by the Fundação Getúlio Vargas, progress in 2015 by completing a simulation to trade emissions, with the support of other the study on risk management and which reinforces the Company's businesses of the private sector. climate opportunities (physical, initiatives to lead the process of The idea is to raise awareness reputational, of the value chain) consolidating a carbon pricing and coordinate corporate leaders for 100% of its industrial plants market. towards management and with the support of GVCes and Global Sustainability Program (CDP) In 2015, the Company was and, in 2008, started reporting its the section on climate change). As the highlight of the carbon GHG emissions. All information a next step, Braskem will expand management product of CDP published can be consulted at www. the approach to Suppliers in 2016 Brazil, with 100% transparency cdp.net (the website is in English). in the water resources module, and A- level results. CDP was In 2013, Braskem joined the focusing on companies that are launched in 2000 aiming to CDP Supply Chain in the module located in regions prone to water collect and publish data on Climate Change, aiming to raise shortages). Since 2014, Braskem greenhouse gas emissions (GHG) awareness and engage its prime has voluntarily responded to CDP of companies in more than 60 Suppliers for the preparation Water, addressing its strategy and countries, becoming one of the of GHG emissions inventory results regarding water resources. most important indicators of its and identification of risks and All data are available on the kind. Braskem has supported opportunities to reduce their CDP website. the initiative since its inception impacts (for more information, see Brazilian Network of the Global Compact of the United Nations In 2015, the global compact of the Losses in Water Distribution, which Committee since 2008. The company United Nations completed 15 years, aims to fight losses in treated water chaired the committee in the 2013- and Braskem, a signatory to and throughout the distribution network. 2014 biennium, the same year when member of the Brazilian network The initiative is in line with the sixth it joined the "Corporate Leadership for of the Global Compact since 2007, Sustainable Development Goal (SDG), Pricing of Carbon". has been among the companies which seeks to "Ensure availability recognized for their efforts toward and sustainable handling of water Braskem has also integrated the Sustainable Development. and sanitation by all." The project LEAD Group of the Global Compact also relies on the participation of since 2013. Forty-five companies One of the first collective actions to companies, government organizations, are selected to have a closer contact advance in the SDGs, filed in 2015, and nongovernmental organizations. with the leadership of the initiative is jointly led by Braskem. Together in the United States and enable their with SANASA, the Company launched Braskem is a member of the Brazilian influence on strategic decisions. the Movement for the Reduction of Network of the Global Compact 117 2015 | Braskem | Annual ReportCarbon Pricing Leadership Coalition (WB) Continuously seeking to expand the consolidation of the carbon pricing market, Braskem joined in 2014 the "Carbon Pricing Leadership Coalition"; an initiative of the World Bank that seeks to mitigate climate change through the introduction of carbon pricing mechanisms. Women's Empowerment Principles (WEP) Also in 2015, Braskem assumed a of women. This public engagement has to do with equal treatment of public commitment to the United is one of the initiatives within the women and men, respecting human Nations' initiative called Women's Diversity Program, launched by rights and nondiscrimination, and Empowerment Principle, which aims Braskem with a primary focus on the the assessment and publication to promote measures that support gender equality issue. One of the of Company progress towards gender equality and empowerment Women's Empowerment Principles promoting gender equality. International Council of Chemical Associations (ICCA) As a member of the International and operates in working groups Care, which, since 1992, has Council Chemical Associations, on energy, climate change, and sought to improve environmental Braskem presented a set of its chemical safety. The company management of chemical sustainability initiatives in a also has a seat in internal groups industries and of their production corporate event on the reduction on leadership in Responsible chain in Brazil, and the Global of greenhouse gas emissions Operation, Chemical Safety, and Product Strategy (GPS) a program called "Brazilian Strategy Energy & Climate Change. that seeks to promote recognition Post-2020: Challenges and and dissemination of possible Opportunities," sponsored by Through ABIQUIM (Brazilian risks to workers, consumers, and ICCA, as the concurrent activity Association of the Chemical the environment, arising from with COP-21, in 2015. Industry) and ACC (American the production, handling, and Chemistry Council), Braskem marketing of chemical products. The group integrates the executive contributed with initiatives of leadership group of the entity the ICCA, such as Responsible 118 2015 | Braskem | Annual ReportMap of Corporate Recycling Commitment (CEMPRE) and the Declaration of Cleaner Production Braskem also operates with processes. In this sense, the on integrated management of commitments geared toward company participates together waste. Created in 1992, CEMPRE waste management in its with other businesses in the private conducts technical research and production, aiming to reduce sector of the CEMPRE – Corporate seminars, disclosing publications impact on the environment and Committee on Recycling, a and organizing databases gain more efficiency in the use of nonprofit organization dedicated on reduction, reuse, and natural resources in its production to promoting recycling, focusing recycling of waste. Akatu Institute Trata Brazil Institute A nonprofit, nongovernmental A Civil Society Organization board of Trata Brasil, Braskem organization that works together of Public Interest, Trata Brasil was one of the founders of with society to promote conscious aims to coordinate initiatives the Institute in 2007, along consumption. Braskem supports on information and national with companies such as Solvay the Institute and sponsors the mobilization for Brazil to reach Indupa, Tigre, Amanco, and program Edukatu, an initiative universal access to basic others. that focuses on education towards sanitation. As a member of the sustainability. More information about Edukatu can be found in the Social and Environmental section of this report. Brazilian Corporate Network for Life Cycle Assessment The network was officially as Basf, Braskem, Boticário, launched in October 2013 to Danone, Duratex, Embraer, disseminate the practice of Life Embrapa, GE, Klabin, Natura, Plastivida- Plastics Social and Environmental Institute Cycle Assessment (LCA), to Odebrecht, Oxiteno, Pepsico, An entity that institutionally promote training on Life Cycle Petrobras, Raízen, Tetra Pak, represents the production chain Management and support the Vale, Volkswagen, Votorantim of the sector to communicate creation of a Brazilian database Cimentos and 3M. In 2014, the the importance of plastics in for life cycle inventories. LCA Network joined CEBDS as a modern lifestyles and promote Currently, the network has the thematic chamber. participation of companies such its environmentally correct use, while prioritizing social responsibility initiatives. 119 2015 | Braskem | Annual ReportNa Mão Certa Program Launched in 2006 by Childhood ways of fighting sexual exploitation This includes businesses in the Brazil, the Na Mão Certa Program of children and adolescents on logistics and transport sectors, aims to mobilize governments, Brazilian highways. More than in addition to companies from a companies, and third sector 1,400 companies, among which variety of industry sectors that hire organizations around more efficient Braskem, have signed the pact. these services. Green Industry Platform Braskem was the first Brazilian Company to adhere to this initiative of the United Nations Industrial Development Organization (UNIDO), and the United Nations program for the Environment. The platform aims to promote and disseminate the development of environmental, climate, and social programs among Company operations. Forums and Associations Braskem also participates, in an engaged and strategic manner, of the following forums and associations: • Abiclor: Associação Brasileira Council • CCPS: Center for Chemical das Indústrias de Cloro • AFPM: American Fuel & Process Safety • Abiquim: Associação Brasileira Petrochemical Manufacturers • CNI: Confederação Nacional da Indústria Química • Anpei: Associação Nacional de da Indústria • Abrace: Associação Brasileira Pesquisa e Desenvolvimento • INP: Instituto Nacional do dos Grandes Consumidores das Empresas Inovadoras Plástico Industriais de Energia • ASEMEXBRA: Associação • ABRE: Associação Brasileira de Comercial Mexicana Embalagens • Asfamas: Associação Brasileira • ABTP: Associação Brasileira de dos Fabricantes de Materiais • • • Instituto Ethos Instituto PVC Think Plastic Brazil Terminais e Portos para Saneamento • ACC: American Chemistry • Bioplastics Council For more information, visit Braskem > Voluntary Commitments 120 2015 | Braskem | Annual ReportCONTENT INDEX G4•32 Indicator Description Content Overall Standards Strategy and Analyses Disclosure Statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent G4-1 senior position) about the relevance of sustainability Page 3 to the organization and the organization's strategy for addressing sustainability. Description of key impacts, risks, and opportunities G4-2 related to sustainability and its effects on Pages 3, 12 stakeholders. Organizational Profile G4-3 G4-4 G4-5 Name of the organization Primary brands, products, and/or services Location of the organization headquarters Page 7 Page 7 Page 7 The number of countries where the organization operates, and names of countries where either G4-6 the organization has significant operations or that Page 7 are specifically relevant to the sustainability topics covered in the report. Nature of ownership and legal form. Page 7 Markets served (including geographic breakdown, sectors served, and types of customers/ Page 7 beneficiaries). Scale of the organization, including number of employees, number of operations, net sales, total capitalization (debt and net equity), products or Pages 7, 36 services provided The total number of employees by type of contract, gender, and region. Page 48 Percentage of employees covered by collective covered by collective bargaining bargaining agreements. agreements, 41.8% in Mexico, and 98.8% of Members in Brazil are G4-7 G4-8 G4-9 G4-10 G4-11 G4-12 The organization's supply chain 9.7% in the USA. Page 77 122 2015 | Braskem | Annual ReportIndicator Description Disclosure Significant changes during the reporting period regarding the organization size, structure, ownership, or its supply chain, including: changes in the location or operations (facility openings, G4-13 closings, and expansions); changes in the share Page 19 capital structure and other capital formation, maintenance, and alteration; changes in the location of Suppliers, or in relationships with Suppliers, including selection and termination. G4-14 Report whether and how the organization addresses the precautionary approach or principle. Page 115 As a principle, by the Health, Safety, Environment, Quality, and Productivity Policy, Braskem does not produce, handle, use, market, transport, or dispose of any product if it is not possible to do so safely with minimal impact on the environment. Externally developed economic, environmental and G4-15 social charters, principles to which the organization Page 115 subscribes or which it endorses. Memberships of associations (such as industry associations) and/or national or international advocacy organizations in which the organization G4-16 holds a position on the governance body; Page 115 participates in projects or committees; provides substantive funding beyond routine membership dues; views membership as strategic Identified Material Aspects and Boundaries a. List all entities included in the organization's consolidated financial statements or equivalent G4-17 documents b. Report whether any entity included in the organization's consolidated financial statements Page 7 or equivalent documents is not covered by the report. Process for defining the report content and the G4-18 Aspect Boundaries: process for implementation of Page 32 G4-19 the principles for defining report content Material aspects identified in the process for defining report content. Page 32 123 2015 | Braskem | Annual ReportIndicator Description Disclosure For each material Aspect, report the Aspect Boundary within the organization, as follows: (1) whether the Aspect is material within the organization; (2) If the Aspect is not material for all entities within the organization (divisions, operating G4-20 units, subsidiaries, and joint ventures), select one of the following two approaches and report either: Page 32 (i) entities or groups of entities included in G4-17 for which the Aspect is not material or (ii) entities or groups of entities for which the Aspect is material; (3) any specific limitation regarding the Aspect Boundary within the organization. For this cycle, no new material aspects were identified. Reference of the macro-objectives defined by the organization and the aspects related to each one of them were followed. Thus, the classification of aspects and boundaries, both inside and outside the organization, is shown below: The following macro-objectives are considered material, outside of the For each material aspect, report its boundary outside Company: the organization, as follows: (1) whether the Aspect Climate change, post-consumption, is material outside of the organization; (2) if the local development, and Safety Aspect is material outside of the organization, (safe use of the product). G4-21 identify the entities, groups of entities or elements Braskem monitors Indicators for which the Aspect is material and describe the related to these aspects outside geographical; (3) report any specific limitation the Company, when the third-party regarding the Aspect Boundary outside the database is available and reliable. organization. Examples of monitored data: Scope 3 emissions, plastics recycled by recycling cooperatives supported by the Company, benefits from social investment partners, and the safe use of products. The geographic locations of the entities are scattered, with the exception of local development, which focuses on communities neighboring Braskem operations. Effect of any restatements of information provided in previous reports, and the reasons for such G4-22 restatements (such as mergers or acquisitions, Page 63 change of base year or period, in the type of business, in measurement methods). G4-23 Significant changes from previous reporting periods in the Scope and Aspect Boundaries. No major change in addition to the start of operations of the Braskem Idesa plant, in Mexico. 124 2015 | Braskem | Annual ReportIndicator Description Stakeholder Engagement G4-24 G4-25 List of stakeholder groups engaged by the organization. The basis for identification and selection of stakeholders with whom to engage. Approach to stakeholder engagement, including frequency of engagement by type and by Disclosure Page 32 Page 32 G4-26 stakeholder group, and an indication of whether any Page 32 of the engagement was undertaken specifically as part of the report preparation process. Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting. Stakeholder groups that raised each of the key topics and concerns. Page 32 G4-27 Report Profile G4-28 G4-29 G4-30 G4-31 G4-32 G4-33 Reporting period (such as fiscal or calendar year) for information provided. Date of most recent previous report (if any). 2015 2014 Reporting cycle (such as annual, biennial, etc.). Annual Contact point for questions regarding the report or its contents. Table that identifies the location of the information in the report, mentioning: (1) the 'in accordance' option the organization has chosen, (2) external assurance (if any). Page 153 G4 Core Page 121, GRI Content Index Policy and current practices with regard to seeking External assurance carried out by external assurance for the report; relationship KPMG, occurs through the request between the organization and the assurance of the Leaders and is part of the providers; whether the highest governance body or set of annual goals for the Leaders senior executives are involved in seeking assurance responsible for developing the for the report. report. Governance Governance structure of the organization, including committees of the highest governance body G4-34 responsible for specific tasks, such as assisting the Pages 22, 26 Board of Directors in decision-making on economic, environmental and social impacts. 125 2015 | Braskem | Annual ReportIndicator Description Disclosure Report whether the Chair of the highest governance G4-39 body is also an executive officer (and, if so, his or her function within the organization's management Page 26 and the reasons for this arrangement). Ethics and integrity Organization's values, principles, standards and G4-56 norms of behavior, such as codes of conduct and Pages 9, 24 ethics Internal and external mechanisms for seeking advice G4-57 on ethical and lawful behavior and in compliance with the legislation, such as relationship channel Page 24 (ex.: Ombudsman's Office). Report the internal and external mechanisms for reporting concerns about unethical or unlawful behavior, and matters related to organizational integrity, such as escalation through line management, whistleblowing mechanisms or G4-58 Pages 23, 24 hotlines. Specific Standard Disclosures Material Aspects: all Macro Objectives: all G4-DMA Generic Disclosures on management approach Page 37 Material Aspects: Economic performance Macro Objectives: Economic-financial results G4-EC1 Direct economic value generated and distributed Page 36 G4-EC2 Financial implications and other risks and opportunities for the organization's activities due to climate change Pages 36, 72, 99 Additional information about this indicator is available in the CDP 2015 report, found at: https://www.cdp.net > Company Responses > Braskem S. A. (https://www.cdp.net/en-US/ Results/Pages/Company-Responses. aspx?company=2135) G4-EC4 Financial assistance received from government Page 46 Aspects: Market presence Macro Objectives: Local development Ratios of standard entry level wage by gender G4-EC5 compared to local minimum wage at significant locations of operation Page 54 Amounts per gender are not shown, since the entry level wage at Braskem is the same for men and women; in other words, the same amount applies to both. 126 2015 | Braskem | Annual ReportIndicator Description Disclosure Page 50 Management positions and above: 82% are local (were born in the state in which they are allocated). In Mexico and Germany, Leaders G4-EC6 Proportion of senior management hired from the include all Team Members with local Community at significant locations of operation subordinates and 21% and 63% Aspects: Indirect economic impacts Macro Objectives: Local development of them, respectively, were hired locally. At international offices, 38%. There is no data reported from the United States because there was no monitoring of this information. Pages 105, 106 There is no breakdown of this Development and impact of infrastructure information, since all investments were G4-EC7 G4-EC8 investments and services provided Significant indirect economic impacts, including the extent of impacts Aspects: Procurement practices Macro Objectives: Local development G4-EC9 Proportion of spending on local Suppliers at significant operating units made as contributions (cash or donated equipment), and all services were offered for free. Pages 14, 87, 105 Page 76 Braskem defines local Suppliers as those located in the same Country as the Company's unit that purchased its products or services. 127 2015 | Braskem | Annual ReportIndicator Description Aspects: Materials Macro Objectives: Renewable resources Disclosure Among the main non-renewable direct materials used by Braskem are naphtha, condensate, ethane, propane, HLR, and sodium chloride. The Company also uses ethanol manufactured from sugar cane to produce ethylene from renewable sources, thus reducing demand for non- renewable resources. Braskem considers materials to be those present in the final product. Non- renewable materials are resources that cannot be renewed at the same rate as they are consumed, such as minerals, metals, oil, coal, and gas. The amounts used are not disclosed, since it is commercially sensitive information. Braskem invests in renewable raw materials, so there are no raw materials from recycling. At industrial plants, reuse is maximized through a return to the chain within the production process, which would be equivalent to internal recycling. Investments in energy and chemical recycling are being made for the future. G4-EN1 Materials used by weight or volume G4-EN2 Percentage of materials used that are recycled input materials Aspects: Energy Macro Objectives: Energy efficiency Energy consumption within the organization Pages 72, 99 G4-EN3 G4-EN5 G4-EN6 G4-EN7 Energy intensity Reduction of energy consumption. Reductions in energy requirements of products and services Aspects: Water Macro Objectives: Water efficiency G4-EN8 Total water withdrawal by source G4-EN10 Percentage and total volume of water recycled and reused Page 72 Page 72 Page 87 Page 68 Page 68 128 2015 | Braskem | Annual ReportIndicator Description Aspects: Biodiversity Macro Objectives: n/a (material only for Mexico) Disclosure Description of significant impacts of activities, built in areas where there was G4-EN12 products, and services on biodiversity in protected no industrial activity, such as areas and areas of high biodiversity value outside in Mexico, the Country where Page 20 The main impact of Braskem's operations on biological diversity occurs when new units are protected areas G4-EN14 Total number of IUCN red list species and in other conservation lists with habitats in areas affected by operations of the organization, by level of extinction risk Braskem Idesa concluded the construction of a petrochemical complex. These impacts are reversible in the medium-term (approximately 10 years). Page 20 There is only one endangered species affected by Braskem's operations, the Ceratozamia miqueliana (flora, critical status), in Mexico. With the transposition of the plants found to an environmental protection area created by the Company, the number of plants significantly increased. Aspects: Emissions Macro Objectives: Climate change G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) Pages 72, 99 G4-EN16 G4-EN17 G4-EN18 Indirect Greenhouse Gas (GHG) emissions from the purchase of energy (scope 2) Pages 72, 99 Other indirect emissions of greenhouse gases Pages 72, 99 Intensity of greenhouse gas (GHG) emissions Pages 72, 99 G4-EN19 Reduction of greenhouse gas (GHG) emissions Page 99 Macro Objectives: Climate change G4-EN20 Emissions of ozone-depleting substances (ODS) Pages 72, 73, 99 Macro Objectives: Energy G4-EN21 NOx, SOx and other significant air emissions Pages 72, 73, 99 Aspects: Effluents and waste Macro Objectives: Water efficiency G4-EN22 Total water discharges by quality and destination Page 68 Macro Objectives: Safety G4-EN23 Total weight of waste by type and disposal method Page 66 129 2015 | Braskem | Annual ReportIndicator Description Aspects: Products and services Macro Objectives: Development of applications Disclosure G4-EN27 Extent of impact mitigation of environmental impacts avoided by the use of Braskem of products and services products. Of this total, 54.2 million Page 87 57.2 million tons of CO2 equivalent of greenhouse gas emissions Macro Objectives: Post-consumption G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category Material aspects: Compliance Macro Objective: Strengthening of practices Monetary value of significant fines and total number G4-EN29 of non-monetary sanctions for non-compliance with environmental laws and regulations tons refer to emissions avoided during the estimated lifetime of 974,000 vehicles in Brazil. Page 106 Braskem works with recycling cooperatives in Brazil to encourage recycling of its products and packages. Braskem was not definitively convicted to pay fines or comply with non- monetary sanctions during the period. For the purpose of this report, the same materiality criteria used in the form of reference established by the Brazilian Securities Exchange Commission (“CVM”) was adopted, in accordance with CVM Instruction Standard 480/2009 – R$ 60 million. For environmental issues, the amount of R$ 10 million was considered. Aspects: Overall Macro Objectives: Climate change, energy, water G4-EN31 Total investments and expenditures in environmental protection by type Page 75 Aspects: Employment Macro Objectives: Economic-financial results G4-LA1 Total number and rates of new employee hired and employee turnover by age group, gender and region Pages 48, 51 130 2015 | Braskem | Annual ReportIndicator Description Material aspects: Safety Macro Objectives: Occupational health Disclosure Page 59 The registration system for health and safety does not discriminate data by gender. Types and rates of injuries, occupational diseases, The method of monitoring G4-LA6 lost days, absenteeism and number of work-related absenteeism is being revised; fatalities, by region and gender. therefore, it was not possible to raise this data. Expected adjustment deadline: 2nd half of 2016, to be included in the 2016 AR. Material aspects: Diversity and Equal Opportunity Macro Objectives: None, since the related issues are not material LA12 Composition of governance bodies and breakdown of employees by employee category according to gender, age group, minority group membership, and Page 48 other indicators of diversity. Material aspects: Local communities Macro Objectives: Local development Percentage of operations with implemented local G4-SO1 Community engagement, impact assessments, and Page 106 development programs G4-SO2 Operations with significant actual and potential negative impacts on local communities Pages 62, 105, 114 Material aspects: Anti-corruption Macro Objectives: Strengthening of Practices G4-SO5 Confirmed incidents of corruption and actions taken Page 25 Material aspects: Public Policies Macro Objectives: Strengthening of Practices G4-SO6 Total value of political contributions by Country and recipient/beneficiary Zero. In Brazil, in 2015, Braskem did not make any donations to political parties. Made only in election years in the past, these donations are now suspended and prohibited by law. Braskem does not make political contributions in any of its other countries of operation. 131 2015 | Braskem | Annual ReportIndicator Description Disclosure Material aspects: Anti-competitive Behavior Macro Objectives: Strengthening of Practices Total number of legal actions for anticompetitive G4-SO7 behavior, anti-trust, and monopoly practices and their outcomes Zero (Indicator restricted to national territory) Material aspects: Compliance Macro Objectives: Strengthening of Practices Monetary value of significant fines and total number G4-SO8 of non-monetary sanctions for non-compliance with environmental laws and regulations Material aspects: Client Health and Safety Macro Objectives: Safety Braskem was not definitively convicted to pay fines or comply with non- monetary sanctions during the period. For the purpose of this report, the same materiality criteria used in the form of reference established by the Brazilian Securities Exchange Commission (“CVM”) was adopted, in accordance with CVM Instruction Standard 480/2009 – R$ 60 million. For environmental issues, the amount of R$ 10 million was considered. Page 65 The entire portfolio (100%). Product categories: Basic Inputs, Percentage of significant product and service PP, PE/EVA, PVC and Chlor-Alkali. G4-PR1 categories for which health and safety impacts are Evaluation of impact on health assessed for improvement G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcome and safety. Internal Audits are periodically carried out (SEMPRE, SGI, and external certifications such as ISO 14001, etc.) Page 65 We did not have registered complaints, systematically or through focus groups for Client feedback, for regulations regarding impacts on health or safety during the life cycle of Braskem products, including issues regarding data sheets and product labeling. 132 2015 | Braskem | Annual ReportIndicator Description Disclosure Material aspects: Product and Service Labeling Macro Objectives: Safety Type of product and service information required by the organization's procedures for product and G4-PR3 service information and labeling, and percentage of Page 65 significant product and service categories subject to such information G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes Page 65 We did not have registered complaints, systematically or through focus groups for Client feedback, for regulations regarding impacts on health or safety during the life cycle of Braskem products, including issues regarding data sheets and product labeling. Aspects: Marketing Communications Macro Objectives: Strengthening of Practices Total number of incidents of non-compliance noncompliance with voluntary G4-PR7 with regulations and voluntary codes concerning regulations and codes relating marketing communications, including advertising, to marketing communications, promotion, and sponsorship, by type of outcomes including advertising, promotion, There were no cases of and sponsorship. Material aspects: Compliance Macro Objectives: Strengthening of Practices Monetary value of significant fines for non- G4-PR9 compliance with laws and regulations concerning the provision and use of products and services. Braskem was not definitively convicted to pay fines or comply with non-monetary sanctions during the period. For the purpose of this report, the same materiality criteria used in the form of reference established by the Brazilian Securities Exchange Commission (“CVM”) was adopted, in accordance with CVM Instruction Standard 480/2009 – R$ 60 million. For environmental issues, the amount of R$ 10 million was considered. Aspects: Non-discrimination Macro Objectives: Strengthening of Practices G4-HR3 Total number of incidents of discrimination and corrective actions taken Page 25 133 2015 | Braskem | Annual ReportLIMITED ASSURANCE REPORT ISSUED BY INDEPENDENT AUDITORS To the Directors and Officers of Braskem S/A São Paulo - SP Introduction We have been engaged by Braskem S/A (“Braskem”) to apply limited assurance procedures on the sustainability information disclosed in Braskem’s 2015 Annual Report, related to the year ended December 31st, 2015. Responsibilities of Braskem’s Management The management of Braskem is responsible for preparing and adequately presenting the information in the 2015 Annual Report in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (GRI-G4) as well as the internal controls determined necessary to ensure this information is free from material misstatement, resulting from fraud or error. Independent auditors’ responsibility Our responsibility is to express a conclusion about the information in the 2015 Annual Report based on the limited assurance engagement conducted in accordance with Technical Communication (TC) 07/2012 approved by the Federal Accounting Council and prepared in accordance with NBC TO 3000 (Assurance Engagements Other Than Audits and Reviews), issued by the Brazilian Federal Accounting Council - CFC, which is the equivalent to international standard ISAE 3000 issued by the International Federation of Accountants applicable to Non-Financial Historical Information. These standards require compliance with ethical requirements, including independence ones and also that the engagement is conducted to provide limited assurance that the information in the 2015 Annual Report, taken as a whole, is free from material misstatement. A limited assurance engagement conducted in accordance with NBC TO 3000 (ISAE 3000) consists mainly of questioning the management of Braskem and other professionals of the Company involved in the preparation of the information disclosed in the 2015 Annual Report and applying analytical procedures to obtain evidence that allows us to make a limited assurance conclusion about the sustainability information taken as a whole. A limited assurance engagement also requires additional procedures when the independent auditor learns of issues which lead them to believe that the information disclosed in the Annual Report 2015 taken as a whole could present material misstatement. The selected procedures were based on our understanding of the issues related to the compilation, materiality and presentation of the information disclosed in the 2015 Annual Report, other engagement circumstances and considerations regarding areas and procedures associated with the material sustainability information disclosed in the 2015 Annual Report where material misstatement could exist. The procedures consisted of: (a) planning: consideration of the materiality of aspects to Braskem’s activities, relevance of the information disclosed, amount of quantitative and qualitative information and operational systems and internal controls that served as a basis for preparation of the information in the 2015 Annual Report. This analysis defined the indicators to be tested in detail; 134 2015 | Braskem | Annual Report(b) understanding and analysis of the information disclosed related to the management of material aspects; (c) analysis of processes for the preparation of the 2015 Annual Report and its structure and content, based on the Principles for Defining Report Content and Quality of the Global Reporting Initiative - GRI (GRI-G4); (d) evaluation of indicators and other non-financial information: • understanding the calculation methodology and procedures for the compilation of indicators through interviews with managers responsible for preparing the information; • application of analytical procedures on the quantitative information and questions about qualitative information and • • their correlation with indicators disclosed in the 2015 Annual Report; analysis of evidence supporting the information disclosed; visits to four of Braskem's operational units and its head office for application of these procedures, as well as of items (b) and (c); (e) plausibility analysis of the reasons for omissions of performance indicators associated with topics and aspects identified as material through the Company’s materiality assessment; and (f) comparison of financial indicators with the financial statements and/or accounting records. We believe the information, evidence and results we have obtained are sufficient and appropriate to provide a basis for our limited conclusion. Scope and limitations The procedures applied in a limited assurance engagement are substantially less extensive than those applied in a reasonable assurance engagement. Therefore, we cannot ensure we are aware of all the issues that would have been identified in a reasonable assurance engagement, which aims to issue an opinion. If we had conducted a reasonable assurance engagement, we may have identified other issues and possible misstatements within the information presented in the Annual Report 2015. Nonfinancial data is subject to more inherent limitations than financial data, due to the nature and diversity of the methods used to determine, calculate or estimate this data. Qualitative interpretations of the data's materiality and accuracy are subject to individual presumptions and judgments. Additionally, we did not examine data regarding prior periods to assess the adequacy of policies, practices and sustainability performance, nor future projections data. Conclusion Based on the procedures carried out, described in this report, nothing has come to our attention to suggest that the information in Braskem’s 2015 Annual Report is not, in all material respects, fairly stated in accordance with the Global Reporting Initiative Sustainability Reporting Guidelines (GRI-G4), and with its source records and files. São Paulo, May 4th, 2016 KPMG Assessores Ltda. CRC SP-023233/O-4 KPMG Financial Risk & Actuarial Services Ltda. Eduardo V. Cipullo Accountant CRC 1SP135597/O-6 Ricardo Algis Zibas 135 2015 | Braskem | Annual Report GLOSSARY OFFSETS emission credits that can be negotiated in a cap & trade market. They are generated through the reduction of emissions,, or emissions avoided in accredited locations outside the coverage of the market (for example, reforestation). These securities can be used by participants to offset their emissions in a cap & trade market when they exceed their emission threshold RAFFIA (POLYPROPYLENE FIBERS) name given to the textile fibers normally used to produce bags for transportation of fruit and small loads RISK RATING (PROCESSES) safety index established by insurance companies for processes Second generation (in the petrochemical industry) - second- generation units that produce intermediary products and thermoplastic resins (PE, PP, and PVC) SPREAD margin (profitability) Tag along - a mechanism that gives minority Shareholders, holders of common shares (with voting rights) of a given company, the same rights offered to controlling Shareholders in the case of sale or transfer of controlling interest. Foreseen in the Brazilian legislation (Law of Corporations). BIOPOLYMER thermoplastic resin produced from renewable raw materials CAP threshold for emissions Cracker – industrial equipment where naphtha is transformed into by-products, such as ethylene, propylene, and other co-products Cracking (of naphtha) – breaks down molecules to produce ethylene THERMAL DESORPTION an environmental remediation technology that uses heat to increase volatility of contaminants in order to be removed (separated) from the solid matrix where they are found, typically contaminated soil, until its decontamination DEVIATION noncompliance with a requirement of the operation, such as for example, not use appropriately the personal protection equipment required ECO-EFFICIENCY ratio between the use of necessary resources for the production of a given product and its production volume. This ratio expresses productivity from an environmental standpoint ECO-INDICATORS environmental performance indicators GRID FACTOR average rate of greenhouse gas emissions resulting from the generation of electricity FLARE mechanical safety equipment which is used to burn chemical compounds that an industrial plant is unable to process, either due to not achieving suitable operational parameters (for example, inappropriate composition or extremely high pressure), or in cases of emergency, such as a non-programmed shut down for lack of energy. Burning prevents hazardous compounds from being released into the atmosphere. Flares are continuously operated to ensure their proper functioning in emergencies ROTARY KILNS FOR CLINKER Kilns used to produce cement GRADE (RESIN) type, specification REVERSE LOGISTICS a set of actions, procedures and means intended to enable the collection and return of solid waste to the corporate sector, for reuse, in its cycle, or in other production cycles, or other destination CAP & TRADE MARKET It is a system composed of several parts - for example, countries or companies - where quotas for emissions are established (permits) for each participant, in a way that the sum of all quotas does not exceed the maximum cap established for the system. The threshold is established in order to ensure that total emissions from the system are reduced from one period to the next (for example, for each year operating on the market). Trade is the marketing of permits among participants - those that managed to reduce more of their emissions can sell their surplus permits to those whose cost to reduce emissions is higher than the cost of purchasing permits from others. In other words, it is a trade mechanism that allows for the desired reduction intended by a group to be reached at the lowest possible cost. 137 2015 | Braskem | Annual Report ACRONYMS ABS LDPE BUI Acrylonitrile butadiene styrene Low-Density Polyethylene Basic Unit of Inputs GJ Gigajoules GPS LLDPE UNPOL Linear Low-Density Polyethylene Polyolefins, Vynilic and Renewables Unit (Brazil) PP Global Product Strategy Polypropylene UNUSE United States and European Unit KWH/T PVC Kilowatt-hour per ton Polyvinyl chloride UTEC Ultrahigh molecular weight - a Braskem brand KG/T Kilogram per ton PE Polyethylene HDPE High-Density Polyethylene REACH Register Evaluation Authorization and Restriction of Chemicals SAN Styrene acrylonitrile 138 2015 | Braskem | Annual ReportAppendix TEAM MEMBERS SUPPLEMENTARY DATA TURNOVER RATE - 2015 BRAZIL Terminations New Hires UNITED STATES Terminations New Hires Age bracket <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total Men 63 177 177 417 139 76 4 219 Women Total 60 80 20 160 66 16 2 84 123 257 197 577 205 92 6 303 Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 5 25 18 48 32 30 9 71 2 6 4 12 9 6 1 16 7 31 22 60 41 36 10 87 139 2015 | Braskem | Annual ReportGERMANY Terminations New Hires MEXICO Terminations New Hires Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 0 2 1 3 3 4 1 8 0 3 1 4 4 8 1 13 0 5 2 7 7 12 2 21 Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old 10 17 1 28 51 47 2 Total 100 3 6 0 9 32 14 0 46 13 23 1 37 83 61 2 146 INTERNATIONAL OFFICES Age bracket Men Women Total Total Terminations Number Hired <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 0 0 0 0 1 2 0 3 TURNOVER RATE - 2014 BRAZIL 1 3 0 4 2 0 0 2 1 3 0 4 3 2 0 5 Age bracket Men Women Total Terminations New Hires <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 68 206 219 493 237 173 8 418 46 102 22 170 137 52 2 191 114 308 241 663 374 225 10 609 140 2015 | Braskem | Annual ReportUNITED STATES Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 7 18 12 37 20 37 1 58 1 5 1 7 6 8 1 15 8 23 13 44 26 45 2 73 Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old 0 7 1 8 4 6 1 Total 11 1 3 0 4 0 3 2 5 1 10 1 11 4 9 3 16 Terminations New Hires GERMANY Terminations New Hires MEXICO Age bracket Men Women Total Terminations 31-50 years old <=30 years old New Hires >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 5 15 5 25 13 38 6 57 2 4 0 6 10 22 1 33 7 19 5 31 23 60 7 90 INTERNATIONAL OFFICES Age bracket Men Women Total Total Terminations Number Hired <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 0 1 0 1 0 1 0 1 0 0 0 0 1 0 0 1 0 1 0 1 1 1 0 2 141 2015 | Braskem | Annual ReportTURNOVER RATE – 2013* BRAZIL Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 56 194 181 431 184 164 11 359 Terminations New Hires UNITED STATES 50 78 8 136 99 63 2 164 106 272 189 567 283 227 13 523 Terminations New Hires GERMANY Terminations New Hires MEXICO Terminations New Hires Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 19 11 11 41 20 25 3 48 1 4 4 9 10 11 3 24 20 15 15 50 30 36 6 72 Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old 4 0 0 4 7 9 0 Total 16 1 3 0 4 4 10 0 14 5 3 0 8 11 19 0 30 Age bracket Men Women Total <=30 years old 31-50 years old >=51 years old Total <=30 years old 31-50 years old >=51 years old Total 6 0 0 6 200 154 2 356 2 0 0 2 47 21 0 68 8 0 0 8 247 175 2 424 * International trade offices and quantiQ not included 142 2015 | Braskem | Annual ReportTEAM MEMBERS BY AGE – 2015 BRAZIL Operational/ technical Administrative Leaders TOTAL UNITED STATES Operational/ technical Administrative Leaders TOTAL Age bracket Men <=30 years old 744 (79%) 31-50 years old 2.424 (90%) >=51 years old 767 (98%) Women 199 (21%) 257 (10%) 19 (2%) Total 3,935 (89%) 475 (11%) <=30 years old 184 (39%) 31-50 years old 326 (42%) >=51 years old 88 (64%) 292 (61%) 446 (58%) 50 (36%) Total 943 2.681 786 4,410 476 772 138 Total 598 (43%) 788 (57%) 1,386 <=30 years old 7 (54%) 31-50 years old 322 (73%) >=51 years old 133 (89%) 6 (46%) 120 (27%) 17 (11%) Total 462 (76%) 143 (24%) <=30 years old 935 (65%) 31-50 years old 3,072 (79%) >=51 years old 988 (92%) 497 (35%) 823 (21%) 86 (8%) 13 442 150 605 1,432 3,895 1,074 Total 4,995 (78%) 1,406 (22%) 6,401 Age bracket Men <=30 years old 33 (83%) 31-50 years old 113 (91%) >=51 years old 121 (97%) Total 267 (92%) <=30 years old 46 (68%) 31-50 years old 111 (75%) >=51 years old 68 (76%) Women 7 (17%) 11 (9%) 4 (3%) 22 (8%) 22 (32%) 37 (25%) 22 (24%) Total 225 (74%) 81 (26%) <=30 years old 2 (67%) 31-50 years old 42 (78%) >=51 years old 20 (71%) 1 (33%) 12 (22%) 8 (29%) Total 64 (75%) 21 (25%) <=30 years old 81 (73%) 31-50 years old 266 (82%) >=51 years old 209 (86%) 30 (27%) 60 (18%) 34 (14%) Total 556 (82%) 124 (18%) Total 40 124 125 289 68 148 90 306 3 54 28 85 111 326 243 680 143 2015 | Braskem | Annual ReportGERMANY Operational/ technical Administrative Leaders TOTAL MEXICO Operational/ technical Administrative Leaders TOTAL Age bracket Men <=30 years old 12 (71%) 31-50 years old 23 (72%) >=51 years old 33 (85%) Women 5 (29%) 9 (28%) 6 (15%) Total 68 (77%) 20 (23%) <=30 years old 4 (36%) 31-50 years old 19 (43%) >=51 years old 8 (62%) 7 (64%) 25 (57%) 5 (38%) Total 31 (46%) 37 (54%) <=30 years old 0 (0%) 31-50 years old 9 (69%) >=51 years old 5 (100%) Total 14 (78%) <=30 years old 16 (57%) 31-50 years old 51 (57%) >=51 years old 46 (81%) 0 (0%) 4 (31%) 0 (0%) 4 (22%) 12 (43%) 38 (43%) 11 (19%) Total 17 32 39 88 11 44 13 68 0 13 5 18 28 89 57 Total 113 (65%) 61 (35%) 174 Age bracket Men <=30 years old 186 (81%) 31-50 years old 182 (91%) >=51 years old 38 (100%) Women 45 (19%) 18 (9%) 0 (0%) Total 406 (87%) 63 (13%) <=30 years old 36 (47%) 31-50 years old 33 (51%) >=51 years old 9 (100%) 40 (53%) 32 (49%) 0 (0%) Total 78 (52%) 72 (48%) <=30 years old 2 (100%) 31-50 years old 38 (73%) >=51 years old 28 (100%) 0 (0%) 14 (27%) 0 (0%) Total 68 (83%) 14 (17%) <=30 years old 224 (72%) 31-50 years old 253 (80%) >=51 years old 75 (100%) 85 (28%) 64 (20%) 0 (0%) Total 552 (79%) 149 (21%) Total 231 200 38 469 76 65 9 150 2 52 28 82 309 317 75 701 144 2015 | Braskem | Annual ReportMACRO-OBJECTIVE MACRO-OBJETIVO ACTION PLAN UNTIL 2020 ACTIONS IN 2015 Safety Be recognized as a reference in Safety in Chemicals, Work, and Processes in the global chemical industry. 0 2 0 2 S E V T C E J B O I 0 2 0 2 S E V T C E J B O I Economic and financial results Be among the three largest thermoplastic resin producers in the world, and guarantee profitability that ensures the perpetuity of the business, maintaining an “Investment Grade” rating classification. Work Safety: No fatal work accident recorded. A total of R$66 million were invested in work safety, and we recorded the best historical work safety accident rate per million hours worked by members and outsourced workers, since 2002. • • In 2015, the injury rate with and without lost time (CAF + SAF) for members and outsourced workers was 0.68 accidents / million hours worked, 32% better compared to 2014; Braskem Idesa received the DuPont Safety and Sustainability award and the UNIB 1 BA plant received the Brazil Protection Award. Process Safety: A total of R$ 13 million were invested in work safety, and 94 potential high-risk scenarios have been eliminated since 2013. Chemical Safety: Corporate “Product Stewardship” procedure issued, which strengthens the commitment to reducing product toxicity and establishes a responsibility matrix for the entire organization. Occupational Health: No record of new cases of occupational illness in 2015. Solid, Liquid, and Sludge Waste: In 2015, a total of 32.9 million kg of solid, liquid, and sludge waste were generated at Braskem plants, representing a 10% reduction compared to 2014. The waste generation rate was 2.01 kg per ton of marketable product produced, a result 12.6% less than 2014 and 8.6% better than the goal established for the period, of 2.20 kg/t. It was the best historical result since 2002. Production Capacity: The petrochemical complex in Mexico reached 99% physical progress. It will provide an increase in LDPE capacity of 1.05 million t/year. EBITDA: Registered a record EBITDA of R$ 9,372 million, mainly explained by (i) operational performance; (ii) healthy spread level for resins in the international market; (iii) greater export volume; (iv) good performance at the USA and Europe operations; and (v) average depreciation of the real of 42%. Investment Grade: Maintained the Investment Grade ratings from the three major global risk classification agencies - Moody's, Fitch Rating, and Standard & Poor's. • Maintain system of annual audits with SEMPRE – Integrated Health, Safety, and Environment System. • • • Promote continuous improvement of the risk rating, process safety index established by insurance companies, in order to achieve at le ast 90 points for the Braskem average, with all plants above standard. Identify alternatives for the gradual replacement of ozone depleting substances. Continue the implementation of the GPS – Global Product Strategy in Latin America. • Maintain waste generation stable and remain a reference in the industry. • • Begin operating the Ethylene XXI project (Braskem-Idesa, in Mexico), with a capacity of one million tons of PE based on gas. Foster sustained growth of the plastic manufacturing industry in the domestic market and the increasing export of manufactured goods. • Replace licensed catalysts with our own inputs or inputs developed in partnerships, aiming to diversify production and reduce costs. 145 2015 | Braskem | Annual Report Strengthen partnerships (CEMPRE, CNI, CEBDS...) to support the implementation of the PNRS. Define a business and partnership model for the first energy recycling unit in Brazil. Strengthen the social and environmental project supporting 15 mechanical recycling cooperatives in the states of RS, SP, RJ, BA, and AL. Enable the Energy Optimization Unit in Mauá, SP, in partnership with Odebrecht Ambiental. Continue fostering the chemical recycling project. Wecycle Platform: Launched aiming to foster business and initiatives toward recovering plastic waste, seeking the development of solutions, products, and processes that involve plastic recycling. In partnership with Starbucks® Brazil, a pilot project was launched that uses Plástico Verde I'm Green™, recycled plastic cups and coffee grounds to manufacture wastebaskets to be used in the internal areas of some stores, which will be the first in the world to use these wastebaskets; Chemical Recycling: Three chemical recycling technologies selected for detailed technical economic evaluation: Eco Energy, Michaelis, and JBI. EVTE (Technical and Environmental Feasibility Study) concluded for Michaelis and Innova BR technologies. Sustainable bike racks: Produced from recycled plastic. The equipment, which holds up to six bikes and will last an estimated 15 years, is produced with 53 kg of post-consumer recycled plastic, the equivalent to 12,455 plastic bags or 24,910 disposable 200 ml cups; PNRS: signed industry reverse logistics agreement for non-hazardous packaging, involving 20 associations representing 75% of the packaging produced in Brazil. Continue Innovation and Technology (I&T) projects for new products and processes using raw materials from renewable resources. Green PE: The first polyethylene from a renewable source in the world to be produced on an industrial scale celebrated five years of existence. Today there are over 80 brands in various segments and in several countries in North and South America, Europe, Asia, and Oceania; Green Butadiene: Genomática, a North American bioengineering company, and Braskem announced the production of butadiene on a laboratory scale through a direct process from renewable sources; Ethanol Supply: the percentage of ethanol supply from signatories to the Braskem Code of Conduct for Ethanol Suppliers remained at 99.7% for the year, exceeding the goal of 90%. The remaining 0.3% was bought through commodity exchange. 0 2 0 2 S E V T C E J B O I 0 2 0 2 S E V T C E J B O I Post- Consumption Be recognized as an important agent that contributes to the recycling of plastics Renewable resources Be recognized as a leading producer of chemical products and thermoplastic resins from renewable raw materials and continue as the largest producer of thermoplastic resins from renewable sources in the world. 146 2015 | Braskem | Annual Report Continue improving the water consumption rate and the percentage of water reuse at Braskem. Continue remediation projects. Braskem's remediation management process focuses on preventing liabilities and mitigating possible problems detected. The new projects introduce improved impact elimination mechanisms. Water efficiency Continue as a reference for the use of water resources in the global chemical industry. Reduce emissions intensity to 0.60 KgtCO2e/t. Keep evolving the CDP in the “transparency” and “results” dimensions. Continue working to obtain the first carbon credits (deadline extended due to the instability of the carbon market and drop in credit attractiveness). Climate change Be among the world's best large chemical companies in Greenhouse Gas (GHG) emissions intensity and be an important agent in GHG emissions sequestration due to the use of renewable raw materials. 0 2 0 2 S E V T C E J B O I 0 2 0 2 S E V T C E J B O I Water Consumption: The water consumption rate was 4.05 m³/t, which was 2.6% better than the previous year. The Braskem rate is about six times better than the average in the global chemical industry (based on: ICCA 2013- 25.64m³/t). In absolute terms, Braskem consumed 66.2 million m3 of water in 2015, representing a 7% reduction compared to 2014. We saved an estimated R$ 5.5 million, a total of R$ 3.1 million due to consumption improvements, and R$ 2.4 million due to reduced spending on disposal of effluents. Braskem units operated without restrictions due to water availability and disposal in 2015. Water Reuse: The total reuse rate, which includes the use of rainwater, treated domestic sewage, and industrial effluents, reached 25.1% in 2015. Due to reuse, close to 16.6 billion liters were kept from being extracted from bodies of water (estuaries, rivers, groundwater, etc.), the equivalent to the volume of 7,000 Olympic pools, enough to meet the consumption needs of 444,000 people for one year. The PE9 DCX industrial unit began a project for the reuse of 110 m3 per day in sealing processes, which in addition to reducing demineralized water consumption by 62 m³ per day, enables an annual estimated savings of R$291,000. Braskem's greenhouse gas inventory, audited by a third party, earned gold classification on the GHG Protocol for the 6th consecutive year. The program aims to encourage companies to develop and publish greenhouse gas inventories in Brazil. Braskem reached a leading position in the CDP Investor in Brazil, with 100% transparency and level “A-” in results. For the fifth consecutive year, Braskem was selected to compose the portfolio of the Carbon Efficient Index (ICO2) from BM&FBOVESPA. The number of Braskem suppliers that adhered to the CDP Supply emissions report increased from 18 in 2013, to 26 companies in 2014, and to about 110 in 2015. Concluded the study of climate risk generation (physical, reputational, value chain), and opportunities for 100% of Braskem industrial plants, supported by GVCes and INPE. A smartphone application launched that calculates the advantages of using resins from the Braskem Maxio® family. Launched in 2012, the label gathers a portfolio offering more productivity with less energy consumption and greenhouse gas emissions. From 2008 to 2015, there was an 8.4% improvement at Braskem operations in absolute GHG emissions values, and a 16.2% improvement in carbon intensity (scopes 1 + 2). 147 2015 | Braskem | Annual Report 0 2 0 2 S E V T C E J B O I 0 2 0 2 S E V T C E J B O I Energy efficiency Be among the world's best large chemical companies in energy consumption intensity and be an important user of energy from renewable sources Local development Reach an “excellent” level of reputation in the Citizenship Dimension of RepTrakTM Pulse, showing we are recognized by the Communities close to our facilities and Society in general for our contribution to improving human development. Continue to reduce the intensity of energy consumption. Continue to assess the viability of the project for energy cogeneration from biomass and the use of urban solid waste. Kick off the project for generation from biomass in Alagoas. In 2015, a total of 10.49 GJ of energy per ton produced was consumed, a result 1.3% better than the goal established for the period, of 10.63 GJ/t, and 2.4% better than consumption in 2014. When performance since 2002 is assessed, however, energy consumption shows a 11.8% reduction. Approximately R$ 55 million invested in the past three years in the control and protection of the internal electrical system at the Camaçari-SISUP Complex, in Bahia. Aiming to reduce risk resulting from possible power shutdowns or surges. In case of failure in power supply, the system prioritizes supply for key operational areas in order to reduce the risks associated with unscheduled operational shutdowns. Extend the scope of the social integration program to a national level by strengthening the plastic mechanical recycling chain. Strengthen partnerships around ISP Braskem focusing on long-term measurable impacts in the form of: • Education for Conscious Consumption: Engage one million students through Edukatu (by 2020). Fábrica de Florestas (Forest Factory): Promote the planting of 1,000 ha with community involvement, and educate 100,000 people (2013 to 2020). Social Inclusion of Waste Pickers: Benefit 3,000 waste pickers by promoting a 50% increase in income (2013 to 2020). • • In 2015, this macro-objective reached a development level of approximately 89% regarding the 2020 goal. Braskem Social Investments 2015 - nearly R$25.7 million: Private Social Investment Projects (ISP): R$5.4 million • Incentivized sponsorships (public interest projects): • R$11.3 million in tax benefits (R$2.5 million Income Tax and R$8.8 million sales tax - ICMS), plus an additional R$697,000 in direct funding consideration; • Odebrecht Foundation: R$ 7 million donated to PDCIS and R$ 1.3 million donated to members of the Tribute to the Future Program; Implementation of the Braskem social action strategy through a project portfolio with 89% adherence to ISP guidelines, reaching over R$7 million in funding (135% of the BRK private social investment in Brazil) with external partners (AMBEV, Bunge, Gerdau, the City Government of Porto Alegre, SEBRAE, SESI/SENAI, among others). Ser+ Realizador program: 70% of assisted cooperatives in 2015 (with continuous monitoring by a consultant) had an increase in income. A total of 52% had an increase in income above inflation (9.25%). Over 24,000 tons of waste were delivered for recycling (close to 12% of the total refers to PP, PE, and PVC); Instituto Fábrica de Florestas: Reached the benchmark of one million seedlings produced and over 600,000 planted over seven years of operation in the states of Bahia, Rio de Janeiro, and São Paulo. Edukatu: Over 20,000 participants on the platform. Visitation increased 84% in 2015 and the average monthly views reached almost 77,000 views this year, compared to 42,000 monthly views in 2014. The 22nd edition of the Braskem Theater Award was carried out. The most important award in Bahia performing arts is already consolidated in the state's cultural scene, carried out by Caderno 2 Produções Artísticas sponsored by Braskem and the state government through FazCultura. The award is part of Braskem's social action strategy of appreciating and promoting culture and the arts, focusing on human development. The public-private partnerships secured between Braskem and Maceió City Government aims to improve drainage and swimming conditions on the beachfront, which is preparing for a summer celebrating 200 years since its foundation. 148 2015 | Braskem | Annual Report Braskem will donate over 7,000 meters of PVC pipes to the Maceió City Government. At the beginning of 2010, Braskem Idesa made an important contribution to recovering the history of Central America through an archeological project in the Coatzacoalcos region, in the state of Veracruz, Mexico, which resulted in the publication of “Achado Arqueológico da Bacia Inferior de Coatzacoalcos“ (“Archeological Findings in the Coatzacoalcos Lower Basin”), showing images and descriptions of the archeological findings such as the remains of ceramic vases, bowls, and statuettes characteristic of the pre-classical period (2000 B.C. to 100 A.D.). It is the result of a four-year project in partnership with the National Institute of Anthropology and History (INAH), the entity responsible for the research, conservation, protection, and dissemination of Mexico's historical heritage. The team at the Institute followed every stage of construction of the petrochemical complex, to inspect and ensure the removal of all archeological material from the location. Braskem was classified as one of the “Best Companies to Start a Career” is 2015, by Você S/A magazine, in partnership with Cia de Talentos and Fundação Instituto de Administração (FIA). Braskem launched the Braskem Labs program, which seeks to encourage entrepreneurs with innovative projects that improve people's lives through plastic. Of the 159 proposals registered with Braskem Labs, Braskem's entrepreneur incentive program, 19 have already been chosen for the next selection stage, covering sectors such as: education, energy, sanitation, and agribusiness, that could benefit from the solutions proposed. In the next stage, the teams of project authors from different Brazilian states will meet with mentors from the company and the NGO Endeavor for a personalized training process. Braskem sponsors the Brazilian team of athletes with a range of physical disabilities because the company believes that investments in innovations and medical advances benefit people's lives, allowing them to achieve what before seemed impossible. The initiative is part of the campaign called “Innovation brings the future. And the future involves chemicals and plastics.” In 2015, this macro-objective reached a development stage of about 23% related to the goal for 2020. LCA Studies: Braskem has 61 studies in its LCA pipeline, 9 more than in 2014. A total of 27 were concluded, and 10 are currently in the communication phase. A total of 15 are in progress and 9 are in the exploration phase. In addition, the company concluded 66% of its efforts to complete the inventory of its plants in Brazil. Communication: A total of 11 LCA studies were reported. These studies represent a market of R$ 880 million. Publications: A booklet was prepared about the environmental benefits of plastics; Braskem was selected to publish the ICCA about Avoided Emissions from plastics; LCA Compendium: “Life Cycle Management” highlighting the Corporate LCA Network. Another two publications about the social and environmental impact of plastics are being developed. 149 Continue studies and strengthen the use of the LCA tool in order to develop new applications for our resins. Development of solutions Continue implementing the plastic image promotion program. Implement the program for identifying environmental and social gains for each market development. Develop new programs with social and environmental benefits: Building System for Daycares and Hospitals, Low Cost Solar Heating, Gas Cylinders, Railway Ties, Cement Bags, etc. 0 2 0 2 S E V T C E J B O I Be recognized as a company that supports its Clients in developing environmental and social solutions. Plastic perceived as a solution for Sustainable Development for its contribution to improving people's lives. 2015 | Braskem | Annual Report Strengthening of practices 0 2 0 2 S E V T C E J B O I Be recognized as one of the business references in Brazil and one of the global references in the industry for its contribution to sustainable development. 2013-2015: remain on the DJSI Emerging Markets (The Dow Jones Sustainability Index for Emerging Markets). 2013-2015: become a benchmark in Environmental and Climate Management on the ISE. 2013 – 2015: structured management in organizations focusing on sustainable development. 2013 – 2015: continue to contribute to defining and implementing public policies (examples: PNRS, Chemical Safety, and Global Agreement for Sustainable Development). In 2015, this macro-objective reached a development level of about 87% related to the goal for 2020. Braskem, as a signatory company and member of the Global Compact LEAD group, actively contributed to giving a Brazilian point of view when building the Sustainable Development Goals - SDGs with the UN, and attended the launch event along with nearly 150 world leaders; The Movement to Reduce Loss in Water Distribution was launched, which aims to combat treated water loss in distribution systems. This initiative is aligned with the sixth Sustainable Development Goal (SDG), which aims to “ensure availability and sustainable handling of water and sanitation for all.” The project is co-led along with Sanasa and includes the participation of companies, and governmental and non-governmental organizations; Adhered to the Open Letter to Brazil about Climate Change, in São Paulo. Produced by the Ethos Institute and companies from the Climate Forum, the document renews and expands the commitments made in the 2009 letter, and proposes actions to stimulate the development of a low-carbon economy that is competitive, responsible, and inclusive; Braskem was recognized for its Sustainable Development performance at the event celebrating the 15th anniversary of the Global Compact, promoted by the UN, and stood out in two publications, “NEXT,” and IMPACT.” The General Secretary of the UN, Bon Ki-moon, attended the event; For the fifth consecutive year, Braskem was chosen the best company in the Chemical and Petrochemical sector by the publication "As Melhores da Dinheiro" (“The Best of Dinheiro”) by Istoé Dinheiro magazine; For the 11th consecutive time, Braskem was part of the Corporate Sustainability Index (ISE), and for the 4th consecutive time, on the Dow Jones Sustainability Emerging Markets Index, respectively the sustainability indexes of BM&FBOVESPA of São Paulo and the DJSI index of emerging countries of the New York Stock Exchange. Braskem, for the second time, was included in The Sustainability Yearbook, a publication developed by RobecoSAM, an international investment consulting firm specializing in sustainability. The ranking lists the 457 most sustainable companies in the world, and Braskem is listed among the 19 top companies in the global chemical industry and the 12 top Brazilian companies (considering the 59 sectors covered in the analysis). Braskem is committed to the Women's Empowerment Principles (WEP), aiming to adopt and encourage measures promoting gender equality and women's empowerment. This public commitment is one of the initiatives within the Diversity Program, launched this year by Braskem with an initial focus on the gender equality issue. One of the Women's Empowerment Principles is equal treatment for men and women, respecting human rights and non-discrimination, and the assessment and publication of the company's progress in promoting gender equality. 150 2015 | Braskem | Annual Report GLOBAL COMPACT PRINCIPLES PRINCIPLE DESCRIPTION ASSOCIATED SECTIONS AND INDICATORS Principle 1 Respect and protect human rights Corporate Governance G4-HR3 Principle 2 Prevent violation of human rights Corporate Governance / Solutions for Society / Voluntary Commitments Principle 3 Support freedom of association at work People and processes Principle 4 Eliminate forced labor Solutions for Society Principle 5 Abolish child labor Solutions for Society Principle 6 Eliminate employment discrimination Corporate Governance / People and processes G4-10, G4-EC5, G4-EC6, G4-LA1, G4-HR3 Principle 7 Support a precautionary approach to environmental challenges Profile / Sustainable Development / Solutions for Society / More Sustainable Products G4-EC2, G4-EN7, G4-EN12, G4-EN14, G4-EN27 Principle 8 Promote environmental responsibility Principle 9 Encourage environmentally friendly technologies Profile / Sustainable Development / People and processes / More Sustainable Products G4-EC2, G4-EN7, G4-EN14, G4-EN27, G4-EN28 Sustainable Development / Solutions for Society / More Sustainable Products G4-EC2, G4-EN7, G4-EN27 Principle 10 Work against corruption in all its forms, including extortion and bribery Corporate Governance G4-SO5 151 2015 | Braskem | Annual ReportSUSTAINABLE DEVELOPMENT GOALS (SDG) The Sustainable Development As a LEAD Company of the Global Since its creation in 2002, Braskem Goals (SDG), launched in Compact since 2013, Braskem has has had Sustainable Development 2015 by the United Nations, actively participated in the debate at the core of its strategy, which aims to eliminate poverty and and definition of issues involving materializes through the Company's promote universal economic global sustainable development, 10 macro objectives. See below prosperity, social development always representing a Brazilian how the macro objectives are and environmental protection. vision of global perspectives. aligned with the SDG: FOCUS OF GLOBAL OBJECTIVES IN SUSTAINABLE MANAGEMENT 1. Eradication of poverty 2. Hunger, food and agriculture 3. Health 4. Education 5. Gender equality 6. Water and sanitation 7. Energy 8. Economic growth 9. Infrastructure and industrialization 10. Inequality between countries 11. Sustainable cities 12. Sustainable production and consumption 13. Climate change 14. Oceans and seas 15. Land ecosystems 16. Peace and governance 17. Means of implementation 152 2015 | Braskem | Annual ReportCORPORATE INFORMATION G4•31 Location BRAZIL Southeast UNIB 3 CK ABC UN PP 4 ABC Avenida Presidente Costa e Silva, Avenida Ayrton Senna da Silva, UN PP 3 PLN 1178, Pq. Capuava Santo André (SP) CEP: 09270-901 2700, Jardim Oratório Avenida Wagner Samara, 1280, Mauá (SP) CEP: 09380-901 Bairro Cascata- Paulínia (SP) CEP: 13147-082 Tel: 55 11 4478-1515 Phone: 55 11 3583-2200 Phone: 55 19 3344-6700 UNIB 3 CK ABC UN PE 8 CUB Avenida Presidente Costa e Silva, Rodovia Cônego Domenico SÃO PAULO OFFICE 1178, Pq. Capuava Santo André (SP) CEP: 09270-901 Rangoni,55, s/n – Km 266 – Pista HEADQUARTERS Oeste Rua Lemos Monteiro, 120, Cubatão (SP) CEP: 11573-903 Edifício Odebrecht Phone: 55 11 4478-1515 Phone: 55 13 3362-9001 / Butantã (SP) CEP: 05501-050 UNIB 3 IN ABC Rua da União, 765, UNIB 4 AND PE 9 DCX Rua Marumbi, 1001, SÃO PAULO OFFICE Jardim Sonia Maria - Mauá (SP) Campos Elíseos VILLA LOBOS CEP: 09380-900 Duque de Caxias (RJ) Avenida das Nações Unidas, Phone: 55 11 3576-9000 Phone: 55 11 4977-2020 CEP: 25221-000 Phone: 55 21 2187-8883 UN PE 7 ABC Avenida Presidente Costa e Silva, UN PP 5 DCX 400, Pq. Capuava Santo André (SP) CEP: 09270-000 Rua Marumbi, 1400, Campos Elíseos Duque de Caxias (RJ) Phone: 55 11 4478-4000 CEP: 25221-000 Phone: 55 21 2173-4100 4.777, 11º andar Edifício Villa Lobos Pinheiros (SP) CEP: 05477-000 Phone: 55 11 3576-9000 154 2015 | Braskem | Annual ReportSouth UNIB 2 RS BR 386, Rod. Tabaí Canoas, km 419, PP 2 / PE 5 RS PE 6 RS BR 386 KM 419 Lote 4 BR 386 – Rodovia Tabaí-Canoas – Polo Petroquímico do Sul, Triunfo Km 419, Via de Contorno 1178 Via de Contorno 850, Triunfo (RS) (RS) CEP: 95853-000 Polo Petroquímico, Lote 29 CEP: 95853-000 Phone: 55 51 3457-6310 Phone: 55 51-3457-5511 Passo Raso, Triunfo (RS) PE 4 RS CEP: 95853-000 Phone: 55 51-3457-2351 PP 1 RS BR 386 – Rodovia Tabaí / Canoas – BR 386 KM 419 – III Polo Km 419, Via de Contorno, 1216 RIO GRANDE DO SUL OFFICE Petroquímico, Polo Petroquímico, Triunfo, (RS) Av. Soledade, 550, 2º andar, Via Oeste – Lote 5, Triunfo (RS) CEP: 95853-000 Petrópolis, Porto Alegre (RS) CEP: 95853-000 Phone: 55 51 3721-8161 Phone: 55 51-3721-8661 CEP: 90470-340 Phone: 55 51 3216-2626 Alagoas CS 1 AL PVC 2 AL MINING Avenida Assis Chateaubriand, 5260 Rodovia Divaldo Suruagy Av. Av. Major Cícero Goes Bairro Pontal da Barra Km 12 – Via II - Polo Industrial Monteiro, 2889, Mutange, Maceió (AL) CEP: 57010-900 José Aprígio Vilela, Marechal Deodoro (AL) Maceió (AL) CEP: 57017-515 Phone: 55 82 3177-5151 CEP: 57160-000 Phone: 55 82-3177-5412 Bahia UNIB 1 BA PVC 1 BA CS 2 BA Rua Eteno, 1561, Copec Rua Hidrogênio, 3342, Rua Oxigênio, 765, Polo de Camaçari Camaçari (BA) CEP: 42810-000 Copec, Polo de Camaçari Copec - Polo de Camaçari Camaçari (BA) CEP: 42810-280 Camaçari (BA) CEP:42810-270 Phone: 55 71 3413-2200 Phone: 55 71 3413-2800 Phone: 55 71 3413 3344 PE 1 BA PE 3 BA BAHIA OFFICE Rua Eteno, 1582, Copec Rua Benzeno, 2391, Av. Antônio Carlos Magalhães, Copec, Polo de Camaçari 3244, Edf. Thomé de Souza, Polo de Camaçari Camaçari (BA) CEP:42810-000 Camaçari (BA) CEP:42810-020 Phone: 55 71 3413 3711 Phone: 55 71 3413 4100 PE 2 BA Rua Hidrogênio, nº 3520, Copec, Polo de Camaçari Camaçari (BA) CEP: 42810-280 Phone: 55 71 3413 3860 20º andar Salvador (BA) CEP: 41820-000 Phone: 55 71 3504-7932 155 2015 | Braskem | Annual ReportUNITED STATES HEADQUARTERS NEAL PLANT HOUSTON SALES OFFICE 1735 Market Street, 28th floor 200 Big Sandy Road Basic Petrochemicals produced Philadelphia, PA 19103 Phone: 1 215 831-3100 LA PORTE PLANT 8811 Strang Road, La Porte, TX 77571 Phone: 1 281 476-0303 Fax: 1 281 930-2070 Kenova, WV 25530 in Brazil, 5100 Westheimer Rd – Phone: 1 304 453-1371 Suite 495, Fax: 1 304 453-5916 Houston, TX 77056 TECHNOLOGY AND Fax: 1 713 255-4740 Phone: 1 713 255-4747 / INNOVATION CENTER 550 Technology Drive Pittsburgh, PA15219 Phone: 1 412 208-8100 SEADRIFT PLANT P.O. Box 105, Port Lavaca, TX 77979 Phone: 1 361 487-1100 OYSTER CREEK PLANT P.O. Box 2168, Freeport, TX 77542 Phone: 1 979 705-2650 MARCUS HOOK PLANT Fax: 1 412 20-88205 P.O. Box 432, Marcus Hook PA 19061 Phone: 1 610 497-8850 Fax: 1 610 494-3792 GERMANY HEADQUARTERS An der Welle 3 PP11 WESSELING Werk Wesseling PP12 SCHKOPAU Werk Schkopau, PF 1163 60322 Frankfurt am Main Rodenkirchner Str. 400 06201 Merseburg Phone: +49 69 427 299 200 50389 Wesseling Phone: +49 3461 54740 245 Phone: +49 2232 705 356 MEXICO BRASKEM IDESA SAPI PLANTA COATZACOALCOS Boulevard Manuel Avila Camacho Camino Petrolero El Chapo s/n, 36, Piso 24 Km. 1.3, Col. Zona Industrial Col. Lomas de Chapultepec CP 11000 México D.F de Coatzacoalcos Veracruz, México 156 2015 | Braskem | Annual ReportOTHER COUNTRIES ARGENTINA CHILE Braskem Argentina S.R.L., Av. Nueva Tajamar, 481, WTC Carlos Pellegrini, 1.149, 7º piso, Torre Norte – Oficina 301 C1009ABW, Ciudad Autônoma Las Condes – Santiago de Buenos Aires Phone: 0056-2-482-7000 Phone: 54 11 5275-6600 / Fax: 54 11 5275-6699 HOLLAND VENEZUELA Braskem Europe BV, Beursplein, 37 – 3.011, AA, Kamer 859, PO Av. Río Caura – Torre Humboldt, Box 30128, 3001 DC Piso 19, Oficina 1901, Urb. Rotterdam Prados del Este, Caracas 1080 Phone: 31 10 205-2943 Phone: +58 (212) 976-5025 SINGAPORE PERU 8 EU TONG SEN STREET #22-89 Av. Victor Andres Belaunde The Central, 059818 – Singapore Nº. 280 Of. 603, San Isidro, Phone: +65 6671 0431 Lima 27 Phone: +51 (1) 442-4241 COLOMBIA Capital Park – Centro Empresarial, Calle 93 – 11A – 28 – Sala 302, Bogotá Phone: 0057-1-589-7077 157 2015 | Braskem | Annual ReportCREDITS Vice President Institutional Relations and Sustainable Development MARCELO LYRA DO AMARAL Analysis and Content Production KEYASSOCIADOS Responsibility for Corporate Communication ANDRÉ VIEIRA Design and web development KITE ESTRATÉGIAS DIGITAIS Responsibility for Sustainable Development JORGE SOTO Assurance KPMG External Communications Supervision CARLOS EDUARDO DOS SANTOS MARIANA FERNANDES CARDOSO Photographs JULIO BITTENCOURT BRASKEM COLLECTION Sustainable Development Supervision MARIO PINO LUIZ CARLOS XAVIER Translation GOTCHA! IDIOMAS 158 2015 | Braskem | Annual Reportwww.braskem.com

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