2
Summary
03
Message from
the Business
Leader
07
Braskem
15
Sustainability
Strategy
24
Governance
and Compliance
34
Financial
Performance
45
55
Innovation
Stakeholders
78
Health, Safety,
and the
Environment
99
GRI G4
Content
Index
110
Attachments
116
Glossary
117
Corporate
Information
120
Credits
2016 | Braskem | Annual Report
Message from the
Business Leader
G4-1, G4-2, G4-SO5 Global Compact – Principle 1
2016 was one of the most
the United Kingdom from the
challenging times in Braskem’s
European Union and the fierce
history. Nevertheless, we have
US presidential election. Such
much
to be proud of. Our
occurrences,
coupled
with
Company
has
accomplished
China’s new growth pattern,
unprecedented
achievements,
led
to moderate growth
in
the result of a consistent business
international trade - below 3%
strategy based on international
for the fifth consecutive year
presence,
diversification
of
- and to a reduction in global
raw materials and constant
investment.
improvement
of
operational
efficiency, competitiveness, and
In Brazil, the recession scenario
Governance and Compliance
persisted. The GDP recorded
standards. These pillars not
only ensured us the resilience
a strong decrease of 3.6%
the
(repeating
level of
the
necessary
to overcome
the
3.8% drop
in 2015), driven
turbulence, but also proved that
by
reduced credit and
the
we are on the right track towards
prolonged political-institutional
a promising future of sustainable
crisis, which aggravated
the
growth.
Scenario
effects of historical bottlenecks
of competitiveness.
was the basis for achieving a
historical record of 8.5 million
record EBITDA for the Company
tons of basic petrochemicals,
The main adversities effecting
Historical Operating
in both Brazilian reais (BRL 11.5
a volume 3% higher than in
our activities
in 2016 came
Performance
billion) and in dollars (US$ 3.3
2015, with an average cracker
from the uncertainties in the
In 2016, Braskem achieved good
billion) at the end of 2016.
utilization rate of 92% (the
political and economic scenario,
operating results thanks to the
best in the historical series), an
both globally and in our main
gains in production efficiency
It is important to note that,
increase of three percentage
country of operation, Brazil.
and stronger integration among
despite the recession in Brazil,
points (p.p.) compared to the
At the international level, we
the industrial units in Brazil,
in 2016 our Brazilian units
previous year. Resin production
faced a slowdown in the pace
Mexico, the United States, and
of basic petrochemicals and
reached 4.9 million tons, up 4%.
of world economic growth from
Germany, and commercial offices
resins recorded good operating
key factors such as the exit of
around the world. This formula
performance. We achieved a
Despite
the weak demand
US$
3.3
BILLION
in EBITDA at
the end of
2016.
3
in
the Brazilian market, we
also achieved
record
sales
results. Domestic sales of basic
petrochemicals were 1.9 million
tons, up 5%. Resin sales totaled
3.3 million, with a slight decrease
of 1%. Our commercial strategy,
however, made it possible to
take advantage of opportunities
in
production
sectors
less
affected by the Brazilian crisis,
helping to expand our exports.
In 2016, international shipments
of resins from Brazil totaled 1.7
million tons, an expansion of
24% compared to 2015.
Diversifying raw materials and
geographic presence continued
to be a priority in our global
strategy. We achieved a 100%
average utilization rate of the
polypropylene plants
in
the
United States and Europe, which
was reflected in a 2% increase
in sales volume in the respective
regions compared
to 2015,
reaching a level of two million
tons.
2016 marked
the
start of
operation of the Petrochemical
Complex in Mexico, a milestone
in
our
internationalization
process that required a US$ 5.2
billion investment, the largest
amount ever
invested by a
industrial company with Brazilian
2016 | Braskem | Annual Report 4
capital in a greenfield project
which is eight times lighter than
At the end of 2016, as a result
abroad. In the fourth quarter,
steel and ten times more durable
of the full provisioning of the
the average operation rate of
than high density polyethylene
resources established
through
the three polyethylene plants in
(HDPE), at a competitive cost.
the Global Agreement to be paid
the Complex was 73%, reaching
to Brazilian and
international
97% in December. Polyethylene
Governance and Compliance
authorities in the fourth quarter
production
in Mexico
totaled
Illegal acts committed by former
of 2016, the Company posted a
443,000 tons in the year.
members and agents of Braskem
consolidated net loss of BRL 729
It is also important to note the
on information disclosed in the
retained earnings in the three
closing of the ten year contract
context of Operation Lava-Jato.
previous quarters.
were confirmed in 2016, based
million for the year, even after
to purchase ethane imported
from the United States from an
As the main interested party
It is important to remember that,
affiliate of Enterprise Products.
clarifying
the case, Braskem
since the second quarter of 2016,
The agreement is part of a
acknowledged its responsibility
Braskem had already implemented
project to modernize and make
for
those acts and
regrets
a wide revision project of its
flexible the use of raw material
past
conduct. The
internal
Corporate Governance structure,
of the petrochemical plant in
investigation process culminated
which aimed to implement a new
Bahia, which
predominantly
in the global agreement signed
Compliance Program in order to
operates using naphtha. The
with authorities in Brazil, the
strengthen the responsible area
initiative, with an investment
United States, and Switzerland,
with direct report to Braskem’s
of BRL 380 million, will enable
announced in December. Through
Board of Directors and significantly
the production of up to 15% of
the Global Agreement, Braskem
reduce the possibility of any
ethylene using ethane as raw
agrees to pay the amount of
deviation of a similar nature to
material. The new operation is
BRL 3.1 billion as a fine and
those identified. In addition to the
expected to begin in the second
indemnity,
and
implement
initiatives already
implemented
half of 2017.
improvements in its compliance
in 2016, the program presents
and internal control systems. This
almost a hundred initiatives that
The prospects are promising
commitment will be accompanied
will also be carried out throughout
after we commissioned
the
by external monitors, appointed
the course of 2017.
Ultra High Molecular Weight
by the Department of Justice
Polyethylene (UHMWPE) plant in
(DOJ),
the
Securities
and
Sustainable Development
La Porte, Texas, USA, in 2016, to
Exchange Commission
(SEC),
Braskem maintains a consistent
enable better customer service in
and the Federal Public Prosecutor
course of action to promote
North America and Europe. The
(MPF - Ministério Público Federal)
sustainable development. We
plant was built from Braskem’s
for up to three years, to ensure
are proud to be the first industry
own
technologies,
enabling
compliance with the terms of the
in Brazil to join the “A” List
production of
this product,
agreement.
of CDP Investor in 2016, an
US$
5.2
BILLION
invested in
the Mexican
Petrochemical
Complex
“A”
LIST
of CDP
Investor,
international
seal recognizes
companies
with standards
of excellence
in carbon
management.
2016 | Braskem | Annual Report 5
international seal that recognizes
which aims to foster businesses
companies with excellent carbon
and initiatives for appreciation of
management standards. This
recovery, reinforcing Braskem’s
achievement
is
in
line with
commitment to the plastic chain
our engagement
in different
in Brazil.
national and global
forums
linked to promoting sustainable
Innovation
development such as UN Global
Our Company’s contribution to
Compact, of which we have been
a sustainable world is supported
a signatory since 2007, as well
by
regular
investments
in
as supporting its outstanding
research and development of
participation in lists such as
innovative
solutions
capable
the Dow Jones Sustainability
of providing high
levels of
Emerging Markets Index (DJSI)
productivity
and
reducing
and the Corporate Sustainability
impacts on the environment.
Index (ISE) of the Brazilian Stock
Innovation initiatives are the
Exchange (BM&FBOVESPA).
result of the joint efforts of
our Technology and Innovation
Among
the most
important
Centers located at the Triunfo
initiatives
in 2016
is
the
petrochemical complex in Rio
Movimento Menos
Perda
Grande do Sul, Brazil, and
Mais Água (Less Loss More
in Pittsburgh, United States,
Water Movement), a water
as well as our laboratories in
management project aligned with
Campinas, in São Paulo, Brazil,
the UN Sustainable Development
focused on biotechnology. In
Goals initiated by the Brazilian
addition, in 2016 we expanded
Network of the Global Compact,
our
innovation
structure
which has Braskem and SANASA
with the inauguration of the
as leaders.
European
Technical
Center,
located at the Wesseling plant
With a
focus on generating
in Germany. A highlight
in
more sustainable products, it is
product development was the
important to highlight the launch
launch of a polypropylene resin
of 100% recycled polypropylene
named under the brand Braskem
and
polyethylene
resins
Amppleo. The new resin, used to
produced from big bags and
manufacture high performance
sacks discarded. These initiatives
foams,
can
withstand
include the Wecycle platform,
temperatures up
to 100°C
2016 | Braskem | Annual Report 6
without deformation and may be
In Brazil, despite the consistent
Concerning
the dynamics of
In this context, the Company’s
fully recycled, aligned with our
decline in inflation and rising
the oil market, expectations
strategy
remains
focused on
sustainable commitments.
investor confidence seen
in
are to maintain the agreement
diversifying
the
raw material
recent months, the challenges
between OPEC members and
and geographic profile as a
It is also worth mentioning the
of the macroeconomic scenario
other producers to limit global
way to mitigate the volatility of
use of of I’m green™ Polyethylene
for 2016 continue
in 2017.
supply, which may lead to an
the petrochemical cycle, taking
(green
plastic)
to
produce
Although resumption of growth
increase in the price of oil and
advantage of
the
synergies
equipment and parts
in zero
is expected, the consensus is
consequent
increase of
the
between Braskem’s
industrial
gravity. The project was the result
that it will occur at a slow and
competitiveness of
the gas
units and commercial offices
of a partnership with Made In
gradual pace.
based producer compared to the
for both marketing products
Space, a leading North American
naphtha based producer.
and identifying new investment
company
in
the development
In the
international market,
opportunities,
reinforcing
of 3D printers for zero gravity
according to the International
Concerning
the petrochemical
petrochemical activity in order
operation and a supplier for the
Monetary
Fund
(IMF),
market,
new
polyethylene
to guarantee
the operational
North American Space Agency
the
outlook
for
advanced
capacities in the United States
efficiency,
productivity,
and
(NASA). This is one of the essential
economies improved for 2017
may pressure the spreads of
competitiveness of units
in
advances for a possible mission to
and 2018, due
to stronger
polyethylene in the international
all regions, with emphasis on
Mars and we are very proud to be
economic activity in the second
market whithin
the period
stabilizing production at
the
part of this epic moment.
half of 2016 and projected
beginning in the end of 2017
Petrochemical
Complex
in
fiscal stimulus in the United
and
continuing mainly
in
Mexico. We are also committed
Perspectives
States. For emerging markets
2018, with expected recovery
to
continuously
improving
Despite the adversities, 2016 was
and developing economies in
beginning in 2019. Regarding
the compliance program and
a year that once again proved
general, prospects for growth
the other resins (PP and PVC),
governance practices, maintaining
the
soundness of Braskem’s
have marginally worsened,
expectations are to maintain
financial soundness, and cost
operations. We are a strong
with positive reviews for China
the
spreads at
sustainable
discipline. Thus, we continue
Company, committed to the growth
and negative
for countries
levels, especially in the North
on the mission of building an
of the regions where we operate,
such as Mexico, influenced by
American polypropylene market,
increasingly global Company.
and firm in our commitment to
uncertainties
regarding
the
where there is no new capacity
contributing to the sustainable
election of Donald Trump in the
beginning operation until the
Enjoy your reading
development of the planet.
United States.
end of this decade.
Fernando Musa
2016 | Braskem | Annual Report
01. Braskem
G4-6, G4-9, G4-12
41
INDUSTRIAL
UNITS
29 IN BRAZIL, SIX IN THE UNITED STATES,
FOUR IN MEXICO, TWO IN GERMANY
7
PRODUCTION OF OVER
20 million
TONS/YEAR OF THERMOPLASTIC RESINS AND
OTHER CHEMICAL PRODUCTS
100
EXPORT TO CLIENTS
IN APPROXIMATELY
100 COUNTRIES
7,6k
TEAM MEMBERS
WORLDWIDE
OVER
8k
SUPPLIERS
WORLDWIDE
96,4
THOUSANDS PEOPLE
IMPACTED BY THE
PRIVATE SOCIAL
INVESTMENT
PROJECTS
BRL 11.5
BILLION OF EBITDA
BRL2.9
BILLION INVESTED
334
INNOVATION PROJECTS
UNDER DEVELOPMENT WORTH
US$ 2.6 BILLION1
1 Risk-adjusted net present value of the company’s project portfolio up
to December 2016
GROSS
REVENUE OF
BRL
55.4
BILLION
10
NEW APPLICATIONS
AND 73 PATENT
EXTENSIONS.
THROUGHOUT ITS
HISTORY,
BRASKEM HAS
FILED 1,030
PATENT-RELATED
DOCUMENTS
2016 | Braskem | Annual Report 200
KILO TONS
OF I’M GREENTM
Braskem’s
green plastic
produced from
sugar cane.
8
With annual production of over 20
million tons, Braskem is now the
largest petrochemical
company
in the Americas and is fifth in the
companies from the Odebrecht
Group2 and the Mariani Group,
Braskem3 has over 7,600 Team
Members and is one of the few
Mexico, in the latter through a
joint venture with the Mexican
company Idesa.
world in production capacity of
petrochemicals in the world to
G4-6
thermoplastic resins (polyethylene,
maintain integrated operations for
polypropylene,
and
polyvinyl
producing basic petrochemicals
Associated with
diversifying
chloride) and basic petrochemicals
and thermoplastic resins, which
its raw materials matrix and
(such as ethylene, propylene,
provides competitive advantages
creating
new
sustainable
butadiene, and others). Braskem
is also a global manufacturer
of biopolymers, with
annual
production capacity of 200,000 tons
of I’m green™ Polyethylene (green
from
gains
operational efficiency4.
in
scale
G4-4, G4-7, G4-9
and
chemical and plastic solutions,
Braskem’s growth strategy is
based on
strengthening
its
relationship with
its Clients,
developing
the petrochemical
plastic) produced from sugar cane,
Its global performance profile
and plastic chains, searching for
a 100% renewable origin.
enables the Company to export
operational efficiency, and on
G4-3, G4-4
to Clients
in approximately
internationalization, the latter
100 countries and to operate
through geographic expansion
in 16 regional offices and 41
focused on the Americas. All
Established in August 2002,
industrial units located in Brazil,
without giving up the safety and
as a result of the merger of six
the United States, Germany, and
quality standards of its products.
Principles
and Values
G4-56
Focusing on sustainable growth, Braskem sustains an organizational
culture common to all its operations: A set of shared principles, concepts,
and criteria that promote efficiency and clarity in interactions between
Leaders and Subordinates, and seek to ensure business coherence in its
various Businesses.
TO LEARN MORE,
VISIT
www.braskem.com
2 Copene, OPP, Trikem, Proppet, Nitrocarbono, and Polialden
3 In order to identify the entities included in the consolidated financial statements and entities not covered by the report, we reference the Parent Company’s financial statements prepared in accordance with accounting practices adopted in
Brazil, in compliance with the provisions of Law 6,404/76 (“ Lei das S/A - Corporation Law”) and subsequent adjustments, and the standards issued by the CPC and in accordance with the International Financial Reporting Standards (IFRS)
issued by the IASB, and are being published together with the consolidated financial statements [G4-7, G4-17]
4 In order to clarify the scope of this material, it is worth mentioning that the results of quantiQ were reported in the Financial Statements of the report, but are not considered in the social and environmental indicators. Its management
was already carried out independently even before the sale of the company. quantiQ was sold on 1/10/2017 (signing), with closing of the transaction on 4/03/2017 (closing).
2016 | Braskem | Annual Report 9
In 2015 and 2016, the chemical and petrochemical
sector experienced a high spread cycle, which boosted
the search for better businesses in key markets such as
the United States and Europe, places that showed higher
levels of economic performance.
Markets and
New Fronts
G4-8
Petrochemical production focuses
The performance of the sector is
on transforming oil by-products,
associated with the fluctuation
usually naphtha and natural gas,
of prices of chemical and
into materials for industrial use
petrochemical
commodities
or into end products intended for
traded
in
the
international
society.
market. The spreads are formed
from the differences between
This is a fundamental sector
the prices of oil and its by-
for the growth of the economy
products, defining/ and they
and the development of modern
define the income results of
society
for
its potential of
the industries in the sector.
creating new solutions and
It
is a condition
requiring
materials from chemistry and
companies to constantly search
plastic, capable of providing
more practicality for people’s
for operational efficiency and
control of production
rigid
daily lives and reducing the levels
costs to guarantee the balance
of environmental
impacts
in
and safety of activities during
different market segments, such
challenging moments, resulting
as construction, agribusiness,
from lower spread cycles.
automotive, among others.
In 2015 and 2016, the chemical
Given
these
characteristics,
and
petrochemical
sector
According to data from the Brazilian
included - dropped from sixth
ranking by France and India, and
the petrochemical
industry
is
experienced a high
spread
constantly evolving technologically.
cycle, which boosted the search
The market trend follows the line
for better businesses
in key
Chemical
Industry Association
(ABIQUIM5) , as a result of the
country’s political and financial
to eighth place in the sector’s
followed closely by the United
worldwide ranking. Today, the
Kingdom. The top three positions
industry accumulates net sales
in the global ranking are occupied
for diversifying raw materials and
markets such as the United
crisis,
the Brazilian chemical
of US$ 113 billion, after shrinking
by China, the United States, and
their sources, seeking to develop
States
and Europe, places
industry - in which Braskem’s
nearly 20% in 2015, having been
Japan, respectively.
renewable inputs. The goal is to
that showed higher levels of
petrochemical production is also
surpassed
in
the
international
find innovative solutions that are
economic performance. This
capable of generating increasingly
context helped offset challenges
more social and environmental
in emerging markets, which was
benefits.
the case in Brazil.
5 Source: ABIQUIM http://www.abiquim.org.br/comunicacao/noticia/detalhe/2433/industria-quimica-brasileira-perde-posicao-no-ranking-
mundial-do-setor (portuguese only)
2016 | Braskem | Annual Report 10
Braskem Worldwide
G4-4, G4-5, G4-6
UNITED
STATES
PITTSBURGH
MEXICO
NETHER
LANDS
GERMANY
INDUSTRIAL UNITS
BASIC
POLYPROPYLENE (PP)
VENEZUELA
COLOMBIA
BRAZIL
SINGAPORE
PETROCHEMICALS
Brazil
Camaçari (BA)
Duque de Caxias (RJ)
Mauá (SP)
Triunfo (RS)
Mexico
Coatzacoalcos (Veracruz)
PVC AND SODA
Brazil
Maceió (AL)
Marechal Deodoro (AL)
Camaçari (BA)
POLYETHYLENE (PE)
Brazil
Cubatão (SP)
Santo André (SP)
Mexico
Coatzacoalcos (Veracruz)
Brazil
Mauá (SP)
Paulínia (SP)
Germany
Schkopau e Wesseling
United States
Marcus Hook (Pennsylvania)
La Porte (Texas)
Oyster Creek (Texas)
Seadriff (Texas)
Neal (West Virginia)
PE + PP
Brazil
Camaçari (BA)
Duque de Caxias (RJ)
Triunfo (RS)
GREEN PE
Brazil
Triunfo (RS)
UTEC
United States
La Porte (Texas)
PERU
ADMINISTRATIVES OFFICES
TRIUNFO
CHILE
ARGENTINA
Administrative Headquarters
Brazil
São Paulo (management and
administrative offices)
Administrative Offices
Brazil
Salvador (BA)
Porto Alegre (RS)
United States
Rotterdam
United States
Philadelphia (Pennsylvania)
Germany
Frankfurt
Commercial Offices
Germany
Argentina
Singapore
Chile
Colombia
United States
Netherland
Mexico
Peru
Venezuela
TECHNOLOGY AND INNOVATION
Centers for Technology and
Innovation
Brazil
Triunfo (RS)
United States
Pittsburgh (EUA)
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.
LEARN MORE IN
www.braskem.com.br >
Braskem in the world
2016 | Braskem | Annual Report Business
Model
With global operations, Braskem
seeks to diversify sources of raw
materials, production efficiency,
and innovation with sustainable
returns, in terms of products
and production process. All this
without
losing
focus on the
Client and market trends. These
guidelines are summarized in
three conceptual and strategic
pillars: to survive, to grow, and
to perpetuate.
STRATEGY
PILLARS
Survive
• Focus on the Client and
the market
• Competitive raw
materials and energy
• Operational productivity
and efficiency
Grow
• Internationalization with
expansion focused on the
Americas
• Serve the global market
• Renewable chemicals
Perpetuate
• Competencies and technology
• People and organization
• Sustainability and innovation
• Governance and Reputation
11
Strategic Planning
Braskem’s strategic planning is based on the long-term, but
increasingly seeks to act efficiently, in order to adjust the paths
of business development to the global market scenarios. In this
respect, the Company’s growth is based on:
PRODUCTIVITY AND COMPETITIVENESS
Guarantee of operational efficiency, productivity, and competitiveness
of the units in all regions, especially the stabilization of production
at the Braskem Idesa Petrochemical Complex in Mexico, in 2016.
GEOGRAPHICAL DIVERSIFICATION
Expansion of the global presence and synergies between industrial
plants and commercial offices around the world to explore export
opportunities, mitigate the volatility of the petrochemical cycle,
and reduce dependence on specific markets on the Company’s
consolidated results.
DIVERSIFICATION OF THE RAW MATERIAL PROFILE
Seek alternative sources of raw materials in order to reduce the
dependence on naphtha, and adopt renewable sources with lower
environmental impact.
COMPLIANCE AND GOVERNANCE PRACTICES
Rigorous Compliance and Corporate Governance model, as a way of
guaranteeing excellence of operations in the various global markets
and protecting the business while maintaining financial soundness
and cost discipline.
2016 | Braskem | Annual Report Business Model
PURPOSE: To improve people's lives by creating sustainable chemical and plastic solutions.
RAW
MATERIAL
SEGMENTS/
PRODUCTS
MARKET AND
SOCIETY
12
SALES PER SECTOR**
41%
33%
Gas
23%
3%
Ethanol
Naphtha
Propylene*
Basic
Petrochemicals
(1st Generation)
Polymers***
(2nd Generation)
Biopolymers
8%
8%
Retail
Consumer Goods
4%
Automotive
17%
Other
22%
Food Packaging
13%
Industrial
13%
Construction
5%
5%
5%
Hygiene
and Cleaning
Agricultural
Cosmetics and
Pharmaceuticals
INNOVATION
Total investments in innovation: BRL 275 million Filing of 10 new patent applications
Investment in People
BRL 19 million invested in training
Water Resources
15.4 million m3 of water (reused/recycled)
Raw material cost naphtha and gas
Naphtha BRL 13.9 billion
(include condensate)
Gas BRL 6.5 billion
(includes ethane, propane, HLR, and propylene)
Production
1st Generation
Ethylene 3,459,861 t
Propylene 1,400,466 t
2nd Generation
PE 3,151,646 t
PP 3,599,653 t
PVC 594,039 t
Scope 1: 9,253 ktCO₂e / year
Scope 2: 980 ktCO₂e / year
Number of Team Members
7,656 and creation of around 40,000 jobs
in the value chain
Energy consumption: 10.25 GJ/t
Wecycle
The first polypropylene and polyethylene
resins made from fully recycled content
were launched. Combined production
volumes can reach 50 t/month
Economic
Performance
Social Investments
and Community
EBITDA of
R$11.5 bi
up 23%
compared
to 2015
R$ 27.5 mi in social
and environmental, cultural
and sports projects, directly
benefiting more than
96,400 people in 2016.
*Considers 60% propane for US plants, 22% propane for Europe, and 18% acquired from third-parties for the plants in Brazil.
**Resin sales in Brazil
2016 | Braskem | Annual Report
13
Recognition
Global Compact – Principles 6, 7, 8, 9 and 10
INTERNATIONAL
CDP INVESTOR
Braskem’s operational soundness
category of the O Estado de S. Paulo
and
sustainability
were
newspaper Empresas Mais award.
acknowledged by important regional
Another highlight was receiving
and international recognition from
the award as best company in
the major press and the market
the Chemical and Petrochemical
In 2016, Braskem became the first representative of the Brazilian industry to join the “A List” of
CDP Investor Global, for the transparency and performance of the Climate Change strategy. The
list is reserved for public companies with excellence in greenhouse gas management. As for the
score, Braskem reached the highest score among all companies in Latin America.
throughout 2016.
sector from Valor 1000, one of the
most prestigious yearbooks in the
CDP SUPPLY CHAIN
In Brazil, the Company was a
Brazilian press.
highlight of the sector in the
award As Melhores da Dinheiro
In
addition,
Braskem made
a publication of magazine IstoÉ
important achievements,
some
Dinheiro, and ranked 3rd in the
of them unprecedented among
Chemical
and
Petrochemical
Brazilian companies:
Braskem won two acknowledgments in 2016 regarding the engagement of its suppliers in climate
change. The Company joined, for the first time, the “A List” of the CDP Supply Chain Global. It also
entered the list of the 29 companies with best practices in this aspect, a new ranking created by CDP,
after evaluating the practices of 3,300 companies worldwide.
DOW JONES SUSTAINABILITY INDEX
For the fifth consecutive year, Braskem has been selected to be part of the select group of 95 global
companies in the Dow Jones Sustainability Emerging Markets Index (DJSI). The emerging market index
on the New York Stock Exchange (NYSE) identifies companies that excel by effectively incorporating
sustainability into their business strategy.
TOP WORK PLACES 2016
For the third consecutive year, Braskem was recognized as a top place to work in the Greater
Philadelphia Region in the United States. Braskem was also recognized as a top place to work for the
fourth year in Pittsburgh, United States.
THE SUSTAINABILITY YEARBOOK
Braskem has been included for the third time in The Sustainability
Yearbook, a publication prepared by RobecoSAM, an international
investment consulting agency specializing in sustainability. The
ranking lists the 457 most sustainable companies in the world, with Braskem among the leaders in the global
chemical industry and classified in the Bronze category, which recognizes companies with ratings greater than
54 points and whose performance is between the 5% and 10% best evaluated in their sectors.
2016 | Braskem | Annual Report 14
REGIONAL - BRAZIL
DIVERSITY
its sector to be on the list, according to the survey conducted by the site Love Mondays, specializing in evaluating careers. The survey, based on
12,000 interviews, defines a ranking of 200 companies, among which Braskem is listed among the top 10.
In the area of diversity, Braskem is among the ten best evaluated by women in the labor market, taking ninth place and being the only one in
GREEN POLYETHYLENE
Green Plastic became the first product in the Brazilian petrochemical industry to have its carbon footprint certified by the new System of
Measurement and Certification of the Carbon Footprint of Products by ABNT (Brazilian Association of Technical Standards). The measurement
confirmed that the product has a negative footprint (-2.78kg of CO2eq per kg of product), in other words, it helps to sequester CO2 emissions
from the atmosphere.
FGV recognized two initiatives:
CENTER FOR
SUSTAINABILITY
STUDIES (GVces)
OF FGV-EAESP
•
The increase in the use of video-conferences to reduce travel was highlighted in the study “Sustainability in the area of Information
Technology,” from Insight Case Studies magazine, from the Getúlio Vargas Foundation. A total of BRL 4.1 million was saved through
3,270 video-conferences, which avoided the emission of 1,238 tons of GHG (CO2e).
Less Loss, More Water: An initiative by the Brazilian Network of the Global Compact, which has Braskem and SANASA as leaders,
•
was recognized by GVces Corporate initiatives among the 10 best cases of water resource management in Brazil.
ISE BM&FBOVESPA
BRAZILIAN GHG
PROTOCOL PROGRAM
In 2016, Braskem was selected for the 12th time to be a part of the Corporate Sustainability Index (ISE) of the Brazilian Stock Exchange (BM&FBOVESPA). The
Company has been part of this index since its inception in 2005, and its permanence reflects its commitment to best practices of Corporate Governance, social
responsibility, economic and financial management, and environmental preservation.
Braskem’s inventory of greenhouse gas emissions (GHG) received, for the sixth consecutive year, the Gold classification of the Brazilian GHG Protocol
Program, due to coverage of emissions 1, 2, and 3 with independent external assurance. The classification was granted in 2016, based on the last
inventory, in 2015, calculated by the Company.
ECO 2016 AWARD
sustainability practices in processes and products or services. Braskem was the winner in the Processes – Large Companies category - with Braskem Labs,
an incentive program for entrepreneurs. In its 34th edition, the award had 71 entries, highlighting projects that reduce energy and water consumption
The Eco Brasil Award, carried out by Amcham (American Chamber of Commerce), and the newspaper O Estado de S. Paulo, recognizes corporate
in the production process, reduce waste emissions, and certify a sustainable chain.
GE ECOIMAGINATION
AWARD
Braskem won the Ecomagination Award, awarded by the GE Company to clients who achieved the positive balance between industrial
production and sustainability challenges. The Mobile Reverse Osmosis System, implemented at PP 4 ABC in São Paulo (Brazil), was
recognized for its high positive impact, exemption of Health, Safety, and Environment risks (HSE) related to handling hydrochloric acid and
sodium hydroxide (caustic soda), economic gains of US$ 950,000 per year and for optimizing the use of 128.115 m³ per year of drinking
water, in addition to the guarantee of continuing to use demineralized water in the Company’s production process.
The Braskem
GHG emissions
inventory
received,
for the sixth
consecutive
year, the Gold
classification
of the Brazilian
GHG Protocol
Program
2016 | Braskem | Annual Report 02. SUSTAINABILITY STRATEGY
15
Strategic
macro
objectives:
ratified to
the goals for
2020.
ASSESSMENT
OF IMPACTS
REGARDING
HUMAN RIGHTS.
280 million
SINCE 2002, INVESTMENTS OF AROUND BRL
280 MILLION IN IMPROVEMENTS IN WATER
EFFICIENCY AND OVER BRL 100 MILLION
TO IMPROVE OPERATIONAL AND ENERGY
EFFICIENCY.
86%
THE IMPLEMENTATION
LEVEL OF THE TEN
MACRO OBJECTIVES
REACHED 86% IN
2016.
2016 | Braskem | Annual Report 16
For Braskem, to evolve is to grow sustainably. This is a principle that
and the relation to risks and
Active participant in the process
and sanitation; Decent work and
is materialized by the constant search for innovative solutions, created
opportunities associated with
with the purpose of creating value to the business and reputation to the
a given macro objective. The
brand, while minimizing any possible environmental and social impacts
sponsors are responsible
for
for developing
these SDGs
during Rio+206 and aware of
its role in creating a green and
economic growth; Responsible
consumption and production;
Industry,
innovation
and
caused by the Company’s activicties.
establishing, maintaining, and
increasingly inclusive economy,
infrastructure; Sustainable cities
The Company seeks to develop the sustainability strategy aligned
of the Business strategy and
UN commitments as an integral
change.
with day-to-day business practices. Since 2002, Braskem has invested
the corresponding sustainability
part of its 10 strategic macro
around R$ 280 million in improvements in water efficiency and over R$
objectives.
objectives for sustainability.
Some of the actions include
100 million to improve the operational and energy efficiency of all its
investing
in
innovation and
industrial units in Brazil and abroad, adopting innovative processes and
The sponsors’ recommendation
Based on a correlation process,
technology to create new and
strengthening
the
integration
Braskem has inserted all 17
and communities, and Climate
technologies.
SUSTAINABILITY
ALIGNED WITH
BRASKEM’S BUSINESS
One of Braskem’s ten strategic macro objectives
(MOs) is to be among the business benchmarks
in Brazil and worldwide for its contribution to
Sustainable Development.
was validated by Braskem’s
the
Company
defined
79
sustainable products; promoting
Business
Leader
and Vice
concrete contributions that can
recycling solutions for plastics;
Presidents. The evolution of the
be put into practice through
local
development
through
work was systematically reported
its businesses and products.
training of people, suppliers
to the Company’s Sustainability
Among
the 17
objectives,
and
customers;
improving
Committee, aiming to promote
seven were defined as more
management
practices,
targeted
decision-making,
impacting and with a higher
especially
those
related
to
focusing on the long term. The
degree of contribution. They
gender equality, discrimination
implementation level of the ten
are: No poverty; Clean water
and transparency.
macro objectives reached the
86% mark.
Macro objectives and the
Sustainable Development
Goals (SDGs)
Defined by the United Nations
(UN)
in 2015,
today
the
Sustainable Development Goals
are the new benchmark for
governments, civil society and
MACRO OBJECTIVES
FOR SUSTAINABLE
DEVELOPMENT
See the infographic on page 17 to understand how the
strategic macro objectives for sustainability correlate
with the UN Sustainable Development Goals
With this vision and focus on growth opportunities for the coming
other partners
in designing
years, Braskem defined its work foundation based on ten strategic
business strategies focused on
macro objectives for sustainability. Strengthened in 2016 and with
eradicating poverty, promoting
new goals to be achieved by 2020, this work guides Braskem’s
prosperity
and
well-being
actions at all levels and its implementation and results are monitored
protecting the environment and
by sponsors from several areas, chosen by their area of operation
addressing climate change.
6 Held in Rio de Janeiro in 2012, Rio+20 (or United Nations Conference on Natural
Development) aimed to discuss the renewal of political commitment to sustainable development.
BRL
280
MILLION
invested in
improvements
in water
efficiency.
2016 | Braskem | Annual Report 2016 | Braskem | Relatório Anual
2
17
Macro obje tiv s
To be among the benchmarks
in Chemical, Occupational, and
Process Safety in the Global
Chemical Industry.
To be one of the global benchmarks in
the sector for its contribution in
Sustainable Development.
INTERRELATIONS
FOR SUSTAINABLE
DEVELOPMENT
G4-15
All macro objectives defined
by Braskem contribute to
the 17 UN Sustainable
Goals.
Development
Braskem took part in the
the
process
for defining
SDGs between 2012 and
2015 as a Member of the
Brazilian Committee of the
Global Compact, actively
participating
in
the
Sustainable
Development
Summit.
To be recognized as a company that
supports its Clients in the development
of environmental and social solutions
in Chemistry and Plastics, through its
products & services.
To achieve the "excellent" reputation
level in the Citizenship dimension of
the RepTrak® Pulse, being
recognized by the Community and
Society for its contribution to
improving human development.
Sustainable Development Goals
To be among the top three
thermoplastic resin producers in the
world while maintaining the
Investment Grade rating in the three
major international agencies.
o
Goal
2020
Post-consumption
o
To be one of the five largest traders
of polyethylene (PE) and
polypropylene (PP) from recycled
content in the world and become an
important driver of the growth of
plastic recycling in Brazil.
To be among the leading
producers of chemicals and
thermoplastic resins from
renewable raw materials. And
remain the world's largest
producer of thermoplastic resins
from renewable sources.
To be among the benchmarks in
the use of water resources in the
global chemical industry in terms
of water consumption and water
reuse rates.
To be among the best major
chemical industries in the world in
intensity of energy consumption
and to be a major user of
renewable energy sources.
To be among the world's best major
chemical companies in intensity of
Greenhouse Gas (GHG) emissions while
maintaining the use of renewable raw
materials.
2016 | Braskem | Annual Report
Multiplier Effect of
Sustainability Strategies
G4-18, G4-19, G4-20, G4-21, G4-24, G4-25, G4-26, G4-27
Braskem is aware that achieving
Braskem’s Materiality Matrix
Matrix show
the aspects of
the goals
is only possible
reflects this concern in constantly
greatest importance to Braskem’s
through
clear,
open,
and
reducing
possible
negative
stakeholders and are aligned
transparent communication with
impacts and
increasing
the
with the ten strategic macro
all its stakeholders, including
positive impact of its business
objectives for sustainability, in a
partners in the private sector,
and its presence in different
prospect up to 2020.
governments, and civil society.
locations. The results of this
MATERIALITY MATRIX
High
21
3
23
1
5
2
8
4
28
26
13
27
LEVEL OF
IMPACT
BRASKEM
Medium
22
11
Low
6
18
Irrelevant
16
9
19
7
20
10
25
17
24
29
11b
12
7a
14
15
Irrelevant
Low
Medium
High
LEVEL DEGREE TO STAKEHOLDERS
18
TO LEARN MORE
ABOUT BRASKEM’S
SUSTAINABILITY
STRATEGY, VISIT
www.braskem.com.br/material-
issues-assessement
Environmental
MATERIALIDADE
Critical
High
Moderate
Low
BRASKEM’S LEVEL OF
CONTROL OR INFLUENCE
UPON THE ASPECT
Minimum Low Medium Strong
MATERIAL ASPECTS
(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
Social
(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
2016 | Braskem | Annual Report 19
MAPPING OF STAKEHOLDERS
Category of stakeholders
interacting with Braskem
Stakeholders
Means of engagement
Political/strategic
Trade unions, regulatory agencies, professional associations,
executive branch, legislative branch, public prosecutor’s office,
Meetings, Reputation Survey*
environmental agencies, public/regional opinion, NGOs, financial
market analysts, auditors
Industry
Influenciators
Competitors, trade associations
Media
Industry trade shows, Participation in sector meetings
Coordinators, specialized media, general media, social networks/
Press Releases, Meetings, Interviews, Reputation Survey*
virtual environment
Academy
Research centers, schools, researchers, universities,
Meetings, Reputation Survey*, Projects in partnership
technical schools
Suppliers
Meetings, E-Mails, Internet Channel with exclusive access,
Raw materials, Petrobras, indirect materials, services, technology
Reputation Survey*
Financial market
Controlling shareholder, minority shareholder, board of directors,
financial institutions, debt provider, banks
Team Members
Team Members, third parties
Communities
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
Residents, local leadership, partners initiatives
Institutional Relations Area, Reputation Survey*
Society
Abc 18+/ national, families of Team Members
Reputation Survey*
Facilitators
Impacting
Beneficiaries
Clients
Clients of end consumers distributor, Unib, Unipol, Unvin,
international
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*
*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.
2016 | Braskem | Annual Report 20
Human Rights
G4-18
Commitment to the principles
and Organization (P&O), Health,
that govern Human Rights
Safety, and Environment (HSE),
worldwide
is
embedded
in
Procurement, Legal, Corporate
Braskem’s values, expressed in its
Governance, Compliance, and
Code of Conduct and in voluntary
external partners. Over 100
agreements - such as the Global
documents were also provided
Compact - aimed at promoting
and analyzed
in order
to
sustainable development.
map procedures and identify
key risks, opportunities, and
Braskem carried out an assessment
vulnerable groups.
focused on
the practices of
protecting
and
promoting
With this, Braskem has created
fundamental guarantees to all
a risk matrix of Human Rights
human beings,
regardless of
violations, which is being validated
gender, ethnicity, belief, age
by the Leaders. In 2017, Braskem
group, or any other social status.
will provide additional information
This assessment was developed
on this aspect on its website.
based on the UN Guidelines on
Business and Human Rights
The purpose of this work is to
(Ruggie´s
Framework),
and
establish an integrated, strategic
included the following phases:
and continuous management of
Sector Benchmark, Corporate and
this aspect. Accordingly, based on
Chain Impact Assessment, and
the recommendations received,
GAP Analysis.
Braskem will engage its internal
and external stakeholders in order
The work encompassed
the
to motivate them to improve the
Company’s
operations
in
current action plans, in addition
Brazil, Mexico,
the United
to reporting the evolution of the
States, and Germany, as well
results. The Company’s perspective
as the activities of external
is that, in 2018, the assessment
stakeholders.
Several
Team
of impacts on Human Rights will
Members were
interviewed,
be strengthened and integrated
among them those responsible
into the process of reviewing the
for internal areas such as People
Braskem´s Materiality Matrix.
2016 | Braskem | Annual Report Braskem Idesa
The Company’s commitment to
protecting and promoting human
rights goes beyond geographical
and cultural boundaries. Braskem
Idesa, a joint venture between
Braskem and the Mexican group
Idesa, were conceived with
prerogatives of
sustainability
and human rights. Therefore, in
addition to following Braskem’s
global corporate policies, such
as the Code of Conduct for
Team Members, the unit has a
policy focused on Human Rights,
which includes procedures that
guarantee excellent social and
environmental performance:
• Health and Safety: Accident
frequency rates with and without
lost time during the construction
phase were less than one accident
per million man-hours worked,
21
• New Opportunities Program:
• Biodiversity: 400 hectares of
An initiative created to support
reforested area, 529 specimens
professional
relocation after
of the local wildlife rescued and
completion of the construction
five-fold increase of 331 plants
work on the Braskem Idesa
of the rare endangered species
Pe t r o c h e m i c a l
C o m p l e x ,
“Ceratozamia Miqueliana.”
ensuring the inclusion of 6,500
people in selective processes.
• Preservation of Cultural
Heritage: The construction
• Private Social Investment:
works were monitored by
After identifying regional
a team of specialists from
talents, 200 people from the
the National Institute of
community
(93% women)
Anthropology and History
were trained to be suppliers
(INAH) to ensure that any
for Braskem Idesa and other
archaeological
remains
companies in the region (legal
were properly identified and
constitution of 11 cooperatives
recovered. Currently, over
of cleaning products, uniforms,
three thousand pieces have
and
tilapia
and
chicken
been found and are part of
farming, as well as recycling
the collection of the INAH-
materials made available by
Veracruz Center.
the Company).
• Participatory Environmental
to carry out third-party audits
M o n i t o r i n g : C o m m u n i t y
to ensure
compliance with
Braskem
Idesa will continue
winning the DuPont Safety and
• Diversity:
During
the
• Human Rights Training:
representatives were
trained
principles governing Human
Sustainability Award 2015, as a
construction phase, women’s
Over 500 people were trained
to measure levels of air and
Rights, and,
together with
worldwide highlight in the area of
participation was 8%, a highly
in different aspects, including
water contaminants, as well as
Braskem’s other businesses, will
Industrial Safety. In 2016, its first
representative
rate
when
sexual
harassment
and
dust and noise levels. These
intensify the promotion of the
year of operation, this rate was
compared to the Mexican national
mobbing, in which there was a
people perform environmental
Ethics Line Channel through an
0.67, lower than the average for
average of 3.5%. In addition,
reduction of 40% of the cases
monitoring, guaranteeing the
educational process.
the Chemical Industry in Mexico
workers came from 24 different
reported.
determined by
the National
nationalities, but with great use
transparency of
the
results
which, so far, have not been
Association of
the Chemical
of local labor, which represented
• H u m a n D e v e l o p m e n t :
any different than the initial
Industry
in Mexico
(ANIQ).
85% of the workforce. The current
670,000
training hours
to
environmental parameters.
diversity ratio in the workforce is
ensure better professional
31% women and 69% men.
qualification.
85%
OF LOCAL
LABOR
in addition
to workers of
24 different
nationalities.
2016 | Braskem | Annual Report
22
Forums and Commitments
G4-14, G4-15, G4-16
CDP
The participation in working groups and forums, with the specific
purpose of multiplying positive practices and experiences, is a strong
part of Braskem’s sustainability strategy. In 2016, the Company
supported a coalition of organizations called the IEC (Iniciativas
Empresariais em Clima - Business Climate Initiatives) in order to adopt
a series of recommendations to be submitted to the Government
about the best model for Brazil regarding pricing and constituting a
carbon market.
ICCA (INTERNATIONAL COUNCIL OF CHEMICAL ASSOCIATIONS)
Braskem is part of the executive leadership group and acts in
energy, climate change, and chemical safety working groups of
the International Council of Chemical Industry Associations. The
Company also contributes with initiatives such as the Responsible
Care Program, which, since 1992, has sought to improve the
environmental management of chemical companies and their
production chain in Brazil, and the Global Product Strategy (GPS), a
program that seeks to promote the recognition and dissemination of
possible risks to workers, consumers, and the environment, arising
from the production, handling, and sale of chemical products.
Support for these initiatives occurs through Abiquim and the
American Chemistry Council (ACC), respectively.
CARBON PRICING LEADERSHIP COALITION (WORLD BANK)
In 2015 Braskem became part of this World Bank initiative that
seeks to mitigate climate change by introducing carbon pricing
mechanisms. In 2016, Braskem was part of this organization’s
Steering Committee.
Launched in 2000, the program aims to collect and publish data on greenhouse gas (GHG) emissions
from companies in over 60 countries. CDP is an international organization with a global reporting
platform that works with investors around the globe in order to increase investment opportunities,
contributing to more consistent information for decision-making and risk assessment associated with
climate change. CDP operates a standard system for recording and evaluating company strategy and
performance, recognizing best business practices in this aspect.
GLOBAL COMPACT
Braskem has been a member of the Global Compact’s Brazilian Network Committee since 2008 and
the Global Compact’s LEAD group since 2013. The Company is also part of UNIDO’s Green Industry
Platform initiatives, Caring for Climate of the Global Compact, and Women’s Empowerment Principles
of UN Women.
BRAZILIAN BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT (CEBDS)
One of the founding companies of CEBDS and representative of the World Business Council for
Sustainable Development (WBCSD) network. The initiative has nearly 60 national and regional
councils in 36 countries and 22 industrial sectors.
GETÚLIO VARGAS FOUNDATION - COMPANIES FOR THE CLIMATE
Braskem has been participating in the Companies for the Climate initiative since 2012, a business
platform created by the Center for Sustainability Studies at the Getúlio Vargas Foundation (FGV).
BUSINESS CLIMATE FORUM (ETHOS INSTITUTE)
In 2015, the Company extended its voluntary commitments to improving the levels of greenhouse
gases reduction by signing the Open Letter to Brazil on Climate Change.
2016 | Braskem | Annual Report 23
TO LEARN MORE
ABOUT THE FORUMS
AND ORGANIZATIONS
OF WHICH BRASKEM
IS A PART, THEIR
AGENDAS, AND HOW
BRASKEM IS ENGAGED,
VISIT
www.braskem.com >
voluntary commitments
AKATU INSTITUTE
Non-governmental, non-profit organization that works to promote
conscious consumption. Braskem supports the Institute and
sponsors the Edukatu program, an initiative aimed at sustainability
education, launched in 2013.
TRATA BRASIL INSTITUTE
Civil Society Public Interest organization, aiming to coordinate
national information and mobilization initiatives, so that Brazil may
achieve universal access to basic sanitation.
INTERNATIONAL DECLARATION ON CLEANER PRODUCTION
Part of the United Nations Environment Program (UNEP), seeks to
disseminate environmentally clean production policies and more
sustainable production and consumption practices.
BUSINESS COMMITMENT FOR RECYCLING (CEMPRE)
A non-profit association dedicated to promoting recycling and
integrated waste management.
PLASTIVIDA
Entity that institutionally represents the industry production chain
in order to promote the importance of plastic in modern life and
promote its environmentally correct use, while prioritizing social
responsibility initiatives.
FISCAL CITIZENSHIP CENTER (CCIF)
Independent think tank whose goal is to contribute to simplifying the
Brazilian tax system and improving the country’s fiscal management
model.
2016 | Braskem | Annual Report 03. Governance and Compliance
Global Compact – Principle 10
24
Braskem’s
commitment
to continuous
improvement
of its
Corporate
Governance
and
Compliance
model.
CREATION OF
THE COMPLIANCE
COMMITTEE,
TO SUPPORT
THE BOARD OF
DIRECTORS.
HIRING A
COMPLIANCE
OFFICER TO LEAD
THE COMPLIANCE
AREA AND REPORT
TO THE COMPLIANCE
COMMITTEE.
ACTING WITH
ETHICS, INTEGRITY,
AND TRANSPARENCY
IN ITS BUSINESS
POLICIES.
416 leaders
TRAINING IN COMPLIANCE CONDUCTED IN 10
DIFFERENT LOCATIONS, REACHING AN AUDIENCE
OF 416 LEADERS.
2016 | Braskem | Annual Report 25
Braskem believes that action
excellence practices to ensure
based on ethics, integrity, and
the implementation of a solid
transparency is essential to the
Compliance Program, such as
Survival, Growth, and Perpetuity
the creation of a Compliance
of
its Business. This belief
Committee composed of three
requires constant evaluation and
Board Members, two of which
updates of its Business Policies,
are independent members who
among them those that govern
directly report to the Board
Compliance. Thus, in 2016, the
of Directors. In addition, the
Company began a process of
Program also promoted: An
revising its structure, focusing
increase
in
the number of
on improving and strengthening
independent members on the
compliance in business practices
Board of Directors; an increase
and processes.
in the number of Compliance
Members in the areas of Internal
This initiative aims to further
Controls, Risk Management,
improve
the
concepts
and
Compliance,
and
Internal
guidelines
that
drive
the
Auditing; the approval of the
corporate actions of Braskem’s
Compliance Policy by the Board
Team Members and support
of Directors, which
includes
relationships with Shareholders,
the Anti-Corruption, Antitrust,
S u p p l i e r s ,
C o m p e t i t o r s ,
and Related Party Transactions
G o v e r n m e n t s , C o m m u n i t i e s ,
Policies;
the evaluation and
other stakeholders, and society
improvement of Internal Controls
in general, significantly reducing
regarding processes that have
the possibility that deviations of
presented vulnerabilities in the
a similar nature occur again.
past; outsourcing and improving
Search for evolution in these
the reporting channel, the “Ethics
processes resulted in several
Line”, and other initiatives.
actions
based
on market
2016 | Braskem | Annual Report BRASKEM COMPLIANCE
PROGRAM
In 2016, Braskem reviewed its
and Remediation. Prevention
COMPLIANCE SYSTEM MODEL
Governance and Compliance
is always better and
less
processes,
focusing
expanding
security
on
and
costly
than a cure. Thus,
preventive measures are the
protecting
the Business. In
most important ones to be
this context, Braskem’s Board
implemented
and
followed,
of Directors approved
the
and should be made a priority
creation of
the Compliance
for the Leaders, investments,
Committee directly related to
and other uses of Braskem
it. In addition, the Company
resources.
hired a new Compliance Officer
and revised the scope and
Practicing
the
Compliance
guidelines of the Compliance
System
is
everyone’s
area in order to ensure greater
responsibility, especially
the
independence and autonomy
Leaders’,
and must
occur
for carrying out its activities.
within the dynamics of the
The new Braskem Compliance
planning
Action
cycle and commitment, and
Program’s
System
is based on
ten
its monitoring, evaluation, and
measures, structured in three
judgment, which permeates
pillars: Prevention, Detection,
Braskem.
7
8
Detect
Leader
Prevent
6
5
4
3
2
1
Remedy
9
10
26
1
2
3
4
5
6
7
8
9
Governance and Compliance
Policies and Other Guidelines
Risks and Controls Assessment
Communication and Training
Third-Party Compliance
Engagement in Collective Actions
Management of the Ethics Line Channel
Monitoring of Risks and Controls
Remediate Risk and Strengthen Controls
10
Disciplinary Measures
COMPLIANCE MEASURES CASCADED
INTO IN 151 INITIATIVES
Since
the
01. Governance and Compliance
the beginning of
06. Engagement in Collective Actions
COMPLIANCE MEASURES BY SUBJECT
process
review,
ten
new
compliance measures have been
established, already cascaded in
151 initiatives focusing on best
02. Policies and Other Guidelines
07. Management of the Ethics Line Channel
03. Risks and Controls Assessment
08. Monitoring of Risks and Controls
04. Communication and Training
09. Remediate Risk and Strengthen Controls
governance practices.
05. Third-Party Compliance
10. Disciplinary Measures
15
51
7
25
11
13
5
14
8
2
2016 | Braskem | Annual Report
BRASKEM GOVERNANCE MODEL G4-34, G4-39
)
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 COMMUNICATION COMMITTEE (CEC)
PEOPLE AND ORGANIZATION COMMITTEE (CPO)
INVESTMENT AND FINANCE COMMITTEE (CFI)
Standing Committees
to Support the Board
of Directors
COMPLIANCE COMMITTEE (CC)
COMPLIANCE AREA
ETHICS COMMITTEE
BOARD OF DIRECTORS
EXECUTIVE OFFICE
FISCAL COMMITTEE (WITH RESP. OF AUDIT COMMITTEE)
INDEPENDENT AUDIT
DISCLOSURE COMMITTEE
27
C
L
I
E
N
T
S
GENERAL SHAREHOLDERS’
MEETING (AG)
The General Shareholders’ Meeting
is the sovereign body, which has the
power to decide all business related
to the Company and to make the
resolutions it deems appropriate for its
defense and development.
BOARD OF DIRECTORS (CA)
Braskem’s Board of Directors is an
autonomous body of a collegiate
nature, composed of eleven members
and their respective alternates, six
of whom are Independent Directors,
elected or dismissed at any time by
the General Meeting. Its Chairperson is
not a Company executive. The term of
office of the members of the Board of
Directors is two years, and reelection
is permitted.
STANDING COMMITTEES TO
SUPPORT THE BOARD OF
DIRECTORS
The four Standing Support Committees
are part of the Corporate Governance
structure and aim to advise the Board
of Directors on pre-established matters.
The basic roles and responsibilities of
the Support Committees to the Board
of Directors, as well as the basic
guidelines for their constitution, are
described in the Board of Directors’
Rules of Procedure.
•
a
Compliance Committee (CC)
Created in 2016, the Committee
has
Support
Permanent
nature to the Board of Directors
continuous
regarding
its
commitment
act with
to
transparency and integrity, in
accordance with best Governance
practices and applicable laws,
standards, and regulations, as
well as with Company Policies,
monitoring conduct based on
principles and ethical values.
In this way, the Committee is
responsible
the
monitoring of exposure to risks,
internal control systems, and
compliance with laws, standards,
and regulations, among others.
for ensuring
•
•
People and Organization
Committee (CPO)
Its role is to evaluate, monitor,
SUPPORT CORPORATE GOVERNANCE
and review Policies and Programs
in force, regarding the aspects of
People and Organization, such
as Remuneration, Health, Safety,
and Environment, and the Private
Pension Program. In addition,
the CPO
significant
reviews
changes in macrostructure and
replacement and succession of
executives in strategic positions.
•
•
•
•
the
analyzes
Finance and Investment
Committee (IFC)
Evaluates new Policies, monitors
and
Policies
regarding Financial
in
force
Insurance and
Management,
Risks
Financial
Guarantees,
Management, among others.
It is also responsible for the
investments subject to approval
and investment monitoring. This
committee is also responsible
for contributing to the Braskem
Business Leader Action Program
proposal, prior to its presentation
the Board of Directors,
to
the
focusing
investment
financial
on
strategy,
analyzing
plan, and leverage goals.
as provided by the Sarbanes-Oxley
Act of the United States.
Corporate
Strategy and Communication
Committee (CEC)
Policies,
Evaluates
new
the
monitors and analyzes
Policies
current
Capital Markets,
concerning
Social
and
Responsibility,
Corporate Sustainability, as well
as Institutional Image Programs.
the Committee
In addition,
the general
contributes
guidelines and assumptions used
as the basis for the preparation
of the Braskem Business Leader
Action Program.
to
of
body
FISCAL COMMITTEE (CF)
Composed of five members and an
equal number of alternates,
the
Fiscal Committee is an independent
Braskem’s
corporate
administration that supervises the
acts of the administrators to ensure
compliance with
legal and
statutory duties, issuing opinions and
providing information to the partners,
and monitoring the internal audit.
The committee has expanded powers,
their
INDEPENDENT AUDIT
Responsible for independently issuing
opinions on the Financial Statements
in accordance with current legislation.
STATUTORY EXECUTIVE OFFICE
Officers are responsible for exercising
the management of the Company’s
business and functional areas, as
well as for implementing the General
Policies and Guidelines established by
the Board of Directors.
support
in matters
the commitment
ETHICS COMMITTEE (CET)
The Ethics Committee is an advisory
and deliberative body whose purpose
the Compliance
is
to
involving
Committee
violations of
to
act ethically and with integrity and
transparency. It is also responsible
and
for
discussing
the outcome of
investigations of
complaints in an exempt manner,
and
treating
documents analyzed with absolute
secrecy and confidentiality.
information
evaluating
all
2016 | Braskem | Annual Report
Internationalization
and Improvement
of Compliance
The new structure of the Compliance area has also reinforced Braskem’s
protection in the face of the Company’s more mature internationalization
process, and for this, the team has already been planned with 20
Members who have global ramification. The guidelines are defined in the
Brazilian matrix and passed on to representatives of other regions in the
world with Braskem production units.
In 2016, the Company hired executives responsible for compliance to work
in the United States and Mexico, and in 2017 will have a representative
in Europe. They also have autonomy regarding their respective executive
offices, since they report to the Braskem Compliance area.
Compliance Policy
and Organization
The implementation of the Compliance Policy and a new organizational
structure brought improvements to the Company, but did not change
its Organizational Culture. Based on the trust, delegation, and
integration in relationships between Leaders and their Subordinates,
in this new conceptual design, the Office’s main function is to define
Braskem’s Compliance Guidelines and ensure its implementation by
the respective areas.
It is up to the Leader to maintain their autonomy and delegation,
managing the risks inherent to the Business and to the processes,
executing and monitoring
the controls, and
fulfilling
their
responsibilities, accountability, and purposes.
28
TRAINING IN
COMPLIANCE
The teams in the Compliance
area visited
the Company’s
units to conduct training on
Braskem’s Compliance System,
the
regulatory environment,
and the new guidelines. In
2016,
the
training
focused
on managers, directors, vice
presidents,
and
advisers,
who
are
responsible
for
disseminating
the practices
among the teams and ensuring
compliance with
standards
and processes. In just three
months, 16 workshops were
held at ten different locations,
reaching an audience of 416
participants.
In 2017, the center will also
expand training to its Suppliers.
New
e-learning
training
related to specific issues in the
Compliance Policy are being
prepared and will be made
available to key areas of the
Company.
2016 | Braskem | Annual Report 29
COMPLIANCE STRUCTURE
In order to create value and contribute to Braskem’s competitiveness, productivity, and reputation, the Compliance Department works to help define
Guidelines and Policies, disseminate Culture and Integrity, evaluate and manage Corporate risks and improve the Controls and monitoring environment.
The Braskem Compliance Department operates in four segments:
Internal Controls: responsible for ensuring the adequacy, strengthening, and operation of the Company’s internal control system.
Advises Leaders in assessing the internal control structure at the process level for management controls, SOX controls, and compliance
controls, and supports them in developing processes and controls to manage transactional risks in a preventive manner, addressing
possible vulnerabilities.
Risk Management: responsible for helping senior management identify corporate risks that may impact the possibility of attaining
strategic objectives, as well as creating and protecting value for Shareholders. Supports Leaders in their responsibilities to identify risks with
specialized technical and methodological risk management expertise. In addition, it assists Leaders in defining the action plans necessary
to address the risks identified.
Compliance: responsible for supporting Leaders in disseminating the Culture of Integrity and adherence to internal laws and
regulations. Provides and manages the Ethics Line Channel, enabling the reporting of conduct not in accordance with an ethical,
integral, and transparent action by Team Members, Third Parties a n d C l i e n t s . A d d r e s s e s a l l reports with independence and
impartiality. The team is also responsible for conducting anti-corruption training for Team Members.
Internal Audit: responsible for the independent and objective evaluation of the processes, verifying their effectiveness and
compliance, aiming to add value and improve Braskem’s operations. To this end, in 2016, the team dedicated to structuring the area
and developing an overall work plan, which was approved by the Compliance Committee in December 2016 and will be implemented
beginning January 2017.
2016 | Braskem | Annual Report 30
Compliance Policy
The strengthening of Braskem’s
based on guidelines determined
continuous basis, the formalization
Braskem defines ten commitments
governance also involved the
by the Board of Directors and
and updating of
its policies,
assumed in this policy that must
creation and approval of the
best practices in the market.
including those on Governance
be implemented in a convincing,
Company’s Compliance Policy.
and Compliance, as well as their
responsible, and unrestricted
Braskem understands
that
effective
implementation with
manner
throughout Braskem,
Published in November 2016,
operating with ethics, integrity,
an educational, preventive, and
without exceptions or leniency.
the document was constructed
and transparency requires, on a
awareness-raising approach.
THE TEN COMMITMENTS OF THE BRASKEM COMPLIANCE POLICY
• Fight and not tolerate corruption in any form, including extortion and bribery.
• Firmly and determinedly reject business opportunities that conflict with this commitment.
• Adopt ethical, integral, and transparent principles in relationships with public and private agents.
• Never cite cultural or normal market conditions as a justification for wrongdoing.
• Ensure transparency in information about Braskem, which must be accurate, comprehensive, and accessible, and disclosed on a regular basis.
• Be aware that deviations of conduct, whether by action, omission, or complacency, harm society, violate the law, and destroy the image of Braskem as a whole.
• Guarantee at Braskem, and throughout its value chain, the practice of the Compliance System, always up to date with the best benchmark references.
• Contribute individually and collectively to necessary changes in markets and in the environments where there may be incentive for deviations in conduct.
• Incorporate to the Team Members’ Action Programs performance assessments to comply with the Compliance System.
• Be confident that this commitment will keep us on the path to Survival, Growth, and Perpetuity.
In 2017, all Team Members will receive a badge with the ten commitments for continuous ethical, integral, and transparent action.
2016 | Braskem | Annual Report Communication: transparency in Relations
with the Market and Internal Audience
31
G4-58
As part of its legal commitments,
Braskem regularly sends a set
of information to the Brazilian
Securities
and
Exchange
Commission
(CVM) and
the
São
Paulo Stock Exchange
(BM&FBOVESPA), and the New
York Stock Exchange (NYSE),
such as Standardized Financial
Statements,
Announcements,
Material Facts, and others. In
addition, members of the Board of
Directors and the Fiscal Committee
have an exclusive information
channel, which may be accessed
on the Braskem portal on the
Internet,
providing
security,
transparency, equity, and speed
in the process of communicating
with Shareholders.
For
the
internal
audience,
Braskem’s
communication
channel,
View,
(intranet),
available in Portuguese, English,
and
Spanish,
disseminates
Company
national
and
regional news, corporate and
business information, products,
campaigns,
internal processes,
and acknowledgments.
Braskem Global Agreement
G4-SO5
in
“Operation
In March 2015, as part of
Lava-Jato”
the
investigation, allegations made
about defendants
criminal
proceedings were made public,
according to which certain persons
no longer linked to Braskem were
involved
in undue payments
to obtain benefits through raw
material contracts with Petrobras.
In view of these facts, Braskem
immediately approved the hiring
of
law firms with ample and
proven experience in similar cases
in Brazil and the United States in
order to conduct an internal and
independent investigation of said
allegations, which was performed
under the supervision of and in
collaboration with public authorities
of
the Department of Justice
and the Securities and Exchange
Commission of the United States
respectively).
(DoJ and SEC,
By mid-July 2016, the internal
investigation had not obtained
evidence proving the existence of
illicit facts at Braskem.
At the end of July 2016, Braskem
received new information about
deviations,
the
revealed
collaborations of former Braskem
administrators in the context of
Odebrecht’s cooperation with the
authorities.
in
commercial
Based on this
information, the
internal investigation confirmed the
existence of payments made by the
Company between 2006 and 2014
to three companies located abroad,
as
intermediation
services, and it was not possible to
prove the effective services provided
by such companies. As Braskem’s
former administrators explained
in
collaboration process,
these companies only transferred
resources to a number of other
companies, which
the end
made illicit payments to Braskem,
involving issues such as the naphtha
contract signed with Petrobras in
2009 and terminated in 2014, as
well as changes in the federal and
state tax legislation, to obtain tax
incentives and monetization of tax
their
in
credits that were already within the
rights of Braskem.
After confirming the illicit acts, on
October 3, 2016, Braskem began
discussions with the DoJ and the SEC
to formalize an agreement resolving
all the illicit acts identified and to
seek a simultaneous agreement
with the Brazilian authorities, and
later on, with the Swiss authorities.
As a result of these negotiations,
on December 14, 2016, Braskem
entered into a Leniency Agreement
with the Federal Public Ministry
(MPF). Shortly
thereafter, on
December 21, 2016, Braskem
finalized the formal agreements
with the DoJ and the SEC, as well
as an agreement to terminate
investigations
Swiss
by
Attorney General (in conjunction
with the agreement with the MPF,
Global Agreement). The Global
Agreement includes all the facts
ascertained up to the date of its
execution involving Braskem under
Operation Lava-Jato.
the
abroad,
value
Under the terms of the Global
Agreement, Braskem will pay the
authorities,
above-mentioned
the
in Brazil
and
approximate
of
total
US$ 957 million, equivalent to
nearly BRL 3.1 billion, which is
approximately US$ 95 million
(nearly BRL 316 million) due to
the DoJ, US$ 65 million (nearly
BRL 216 million) due to the
SEC, close to CHF 95 million
(approximately BRL 307 million)
to the Swiss Attorney General,
and approximately BRL 2.2 billion
due to the MPF.
to
Also according
the Global
Agreement, Braskem committed to
independent monitoring
undergo
for a term of up to three years
by monitors designated by the
US and Brazilian authorities, who
will verify Company compliance
with the obligations assumed in
the agreements and evaluate its
Compliance Program, with
the
purpose of reducing the risk of
deviations recurring in the Company.
2016 | Braskem | Annual Report 32
Code of Conduct: Ethics, Integrity,
and Transparency
G4-56, G4-57
Acting
in accordance with
ensure that the Company adheres
model that remains in force in
applicable
laws, regulations,
to the best global processes.
order to ensure full assimilation
policies and best practices is a
of content by all Team Members.
fundamental principle at Braskem.
The
content of
the Code
Effective Compliance represents an
of Conduct
is disseminated
Braskem’s Code of Conduct is
intangible asset for the Company
to all Team Members of the
translated into all the languages
to protect and strengthen the
Company. The process included
of the countries where Braskem
Business. Therefore, constant
questionnaires on the subject
has operations.
It may be
revision of
the Compliance
and electronic signature of the
accessed on
the
corporate
standards, as well as the Code
terms of commitment with the
intranet and
the Company’s
of Conduct, is a best practice to
guidelines of the Code. It is a
website.
BRASKEM’S CODE OF CONDUCT HAS BEEN
EXPANDED AND STRENGTHENED, AS PART OF
THE COMMITMENT TO ETHICS, INTEGRITY,
AND TRANSPARENCY, PRESENT IN THE
COMPLIANCE POLICY, WITH A GLOBAL SCOPE
AT BRASKEM.
IT DEFINES THE VALUES, PRINCIPLES AND
PRACTICES THAT GUIDE THE COMPANY’S
CORPORATE CONDUCT.
Pacts to Fight Corruption
Braskem is committed to playing
Responsibility. Braskem also
an initiative that encourages
Participation in collective actions
an important role in the fight
actively participates
in
the
companies
to
adopt
best
through associations with other
against
corruption, working
Integrity Working Group, which
governance practices. Braskem
companies and entities is a way
to promote a more ethical
assists in the implementation
participates effectively in the
of expressing the commitment of
and integral business market.
of
policies
that
promote
Anti-Corruption Working Group,
the Braskem Leaders to sharing
As part of this objective, the
integrity and fight corruption,
promoted by the Global Compact
experiences,
results,
and
Company is a signatory of the
and mobilizes companies and
Brazil Network, contributing to
actions, to influencing and being
Business Pact
for
Integrity
business entities.
the development of corporate
influenced by best practices, and
and against Corruption, an
actions that fight corruption in
to promoting improvements to
initiative of the Ethos Institute
The Company is also a signatory
all its forms, including extortion
the conditions of its markets and
of Companies
and
Social
to the UN Global Compact,
and bribery.
environments.
2016 | Braskem | Annual Report
Ethics Line Channel
G4-58
Cross-sectionally,
Braskem
MAIN RESULTS OF THE ETHICS LINE CHANNEL IN 2016
provides the Ethics Line Channel
G4-HR3
in which all stakeholders may, in
a safe and responsible manner,
contribute information in order
to maintain a sound, ethical,
transparent,
and
productive
corporate environment. This
channel is accessible via the
Internet on
the Company’s
website, or
through a
toll-
free number in the languages
of
the
countries
in which
Braskem
operates. All
the
information
received on
the
Channel
is
investigated,
respecting
and
confidentiality
independence, ensuring
blowers and the security of the
investigation.
In 2017, the Ethics Line Channel
will change and evolve. The
system will be outsourced and
specialized, providing greater
impartiality and independence.
The service will be customized,
will operate 24 hours a day,
and will be a reference tool for
managing reports.
Of the 85 cases opened in
12 founded cases were filed, which resulted in the following remediation
19 unfounded cases were closed.
2015, a total of 31 were
measures:
brought
to 2016 under
analysis and had
their
investigations closed during
the year.
•
•
•
•
•
2 Team Members terminations
2 Team Members warnings or suspensions
2 notifications to Partners
1 Partner removal
3 process improvements
Of these, 62 analyses were completed and filed in 2016, of which 36 were
founded and 26 were unfounded.
Based on 36 founded cases, the following remedial measures were
addressed by Compliance:
•
•
•
•
•
•
8 Team Members terminations
11 feedback events/warnings/suspensions to Team Members
5 partner removals
2 cancellations of contracts with partner companies
2 notifications/alignments to partner companies
5 process/control improvements
Of these founded cases, three involved discrimination* and the respective
remediation measures were:
•
•
•
1 Team Member termination
1 Team Member warning/suspension
1 partner removal.
*Discrimination: Includes Mobbing, Sexual Harassment, and Abuse of Power.
Of the 44 cases from 2016 that started 2017 in the investigation process, 17
were completed and presented to the Ethics Committee on March 24, 2017,
44 cases opened in 2016
and 12 will be presented to the Ethics Committee scheduled for May 2017.
began the year 2017 in the
investigation process.
Ethics Line cases are archived at the Ethics Committee’s quarterly meetings.
The last meeting in 2016 took place on December 12.
the anonymity of the whistle
106 cases opened in 2016
33
WEBSITE
www.ethicslinebraskem.com
TOLL-FREE
NUMBERS:
• Germany: 0800-183-0763
• Brazil: 0800-377-8021
• United States: 1-800-950-9280
• Holland: 0800-022-1787
• Mexico: 01-800-681-6940
2016 | Braskem | Annual Report 34
1.7
million
tons
HISTORICAL
RECORD OF
EXPORTS: 1.7
MILLION TONS,
24% EXPANSION
COMPARED TO 2015.
04. Financial Performance
BRL 11.5 billion
RECORD EBITDA IN BRAZILIAN REAIS (BRL 11.5
BILLION) AND IN DOLLARS (US$ 3.3 BILLION)
• BRAZIL: BRL 8.5 BILLION
• THE US AND EUROPE: BRL 2.5 BILLION
• MEXICO: BRL 530 MILLION
4%
IN 2016, RESIN PRODUCTION IN BRAZIL
WAS 4.9 MILLION TONS, 4% HIGHER
THAN 2015.
8.5
million
tons
BASIC
PETROCHEMICALS:
PRODUCTION OF
8.5 MILLION TONS
IN 2016, 3%
HIGHER THAN 2015
AND A HISTORICAL
RECORD FOR THE
COMPANY.
BRL 3 billion
VINYLS: NET SALES REVENUE OF
BRL 3 BILLION IN 2016, AN INCREASE
OF 9% OVER THE PREVIOUS YEAR.
Polyolefins:
HISTORICAL RECORD
OF PRODUCTION
OF POLYETHYLENE
IN 2016,
WITH 3.151 KTON.
2%
IN THE UNITED STATES AND EUROPE,
BRASKEM’S PRODUCTION AND SALES VOLUME
REACHED 2 MILLION TONS IN THE YEAR,
A GROWTH OF 2% OVER THE PREVIOUS YEAR.
42%
ALSO IN THE RAMP-UP PROCESS, THE
UTILIZATION RATE OF POLYETHYLENE (PE)
PLANTS IN THE YEAR WAS 42%, WITH A
PRODUCTION VOLUME OF 443 KTONS.
2016 | Braskem | Annual Report 35
BRASKEM OPERATIONS: SOUNDNESS
AND RECORD RESULTS IN 2016
G4-EC1
The maturing of Braskem’s
world and prioritized operational
in 2016, including exports, was
global presence, coupled with
efficiency initiatives to increase
BRL 8.5 billion, representing
greater gains
in productivity
the average utilization rate of
74% of the consolidated result
from
the
improvement and
the
domestic
petrochemical
of the Company’s segments.
synergy between operating and
plants, whose index reached
commercial units, ensured the
a record 92% in the year, 3
In
the United States and
Company’s positive results in
p.p. over the previous year.
Europe, Braskem’s production
2016.
The result was achieved even
and sales volume reached 2
after a planned shutdown of
million tons in the year, a 2%
In 2016, Braskem registered
the Bahia power station for
growth over the previous year,
a record EBITDA in reais (BRL
approximately 40 days during
reflecting an average operating
11.5 billion) and in dollars (US$
the fourth quarter of the year,
rate of 100%, which was 2 p.p.
3.3 billion), which represented
as well as the poor performance
higher than 2015, both historical
growth of 23% and 18%,
of national economic activity.
records for the units. The result
respectively, compared to the
was achieved due to the units’
previous year. This improvement
Due
to
good
operating
good operating performance,
is mainly explained by good
performance, resin production
together with a stronger demand
operating
performance,
a
in Brazil was 4.9 million tons
for polypropylene in the regions,
healthy level of resin spreads
in 2016, 4% higher than 2015.
especially
in
the American
in
the
international market,
In the year, Braskem’s strategy
market, and also due to better
a higher volume of Brazilian
remained
in service of
the
spreads in these regions.
exports, the performance of US
Brazilian market, guaranteeing
and European operations, and
exports of volume not sold
The highlight of the year was
the beginning of the contribution
in the Brazilian market due
the scheduled shutdown at the
of the Petrochemical Complex in
to weaker demand. In
this
Marcus Hook polypropylene
Mexico.
scenario,
Brazilian
exports
plant
in Pennsylvania, USA,
reached a historical
record,
where
improvements were
In Brazil, the Company took
totaling 1.7 million tons, a 24%
made
to
increase nominal
advantage of the synergy with
expansion compared to 2015.
production capacity by 64 kton
its commercial offices around the
The EBITDA of Brazilian units
per year.
92%
all time record
in the use
of Brazilian
petrochemical
plants.
2016 | Braskem | Annual Report 36
COMMISSIONING THE UTEC
PLANT IN THE UNITED STATES
BRASKEM IDESA REACHES AN AVERAGE UTILIZATION
RATE OF 73% IN ITS FIRST YEAR OF ACTIVITY
In 2016, Braskem commissioned
its first Ultra-High
The year 2016 was also highlighted by the contribution of the result of the first year of operations
Molecular Weight Polyethylene (UHMWPE) plant in the
of the Braskem Idesa Petrochemical Complex in Mexico. In line with the estimates planned for the
United States in La Porte, Texas. The unit will enable
first year of activities, the unit recorded an average operating rate of 42% of the polyethylene
better customer service in North America and Europe,
plants and EBITDA of US$ 163 million (BRL 530 million), representing 5% of the total consolidated
and starts operations supported by improvements at the
EBITDA of Company segments.
Pittsburgh Innovation and Technology Center in the United
States aimed toward increasing research and development
In 2016, the focus was mainly on stabilizing the production of the Petrochemical Complex,
capacity in UHMWPE. The resin, developed from Braskem’s
consolidating the service and relationship with Mexican Clients, and exporting in synergy with
own technologies, is eight times lighter than steel and ten
Braskem’s operations in other regions.
times more durable than high density polyethylene (HDPE).
Its diverse applications cover sectors such as automotive
It is important to highlight the operational evolution of the Complex over the period. After the
and
transportation, electronics,
fiber and
textiles,
cracker’s departure in March, the three polyethylene plants began operation in June, which enabled
industrial and heavy machinery, material handling, oil and
the average plant utilization rate to reach 42% in the second half of 2016, reaching 73% in the
gas, pipelines and mining, porous plastics, and recreation.
fourth quarter.
FLEXIBILITY OF RAW MATERIALS
IN BAHIA
As part of the strategy to expand the diversification of raw
materials for production, Braskem has made progress with the
project at the Camaçari plant in Bahia (Brazil) toward making
it suitable to receive ethane. With an investment of BRL 380
million and beginning operations scheduled for the second
half of 2017, the project includes modernizing the industrial
unit and adapting the region’s port infrastructure. By the end
of 2016, Braskem had already invested BRL 120 million. In
addition, the Company entered into a supply agreement with
an affiliated company of Enterprise Products Partners L.P.
(NYSE: EPD) for ethane imported from the United States. The
term of the agreement is ten years and price based on the
international benchmark Mont Belvieu.
2016 | Braskem | Annual Report 37
IMPACTS OF THE GLOBAL
LENIENCY AGREEMENT
RISK RATING AGENCIES
In 2016, Braskem maintained
diversification of the raw material
the investment grade rating by
matrix by beginning operation at
Under
the Global Agreement,
Company recorded a consolidated
Standard & Poor’s and Fitch
the Braskem Idesa Petrochemical
Braskem will pay the authorities,
net loss of BRL 2.6 billion in 4Q16,
Ratings (BBB-) and presented a
Complex
(Mexico),
the
cash
in Brazil and abroad, the total
and BRL 729 million for the year.
credit risk above the sovereign
position maintained abroad, and
approximate amount of US$
Loss attributable to shareholders
by the three largest risk rating
the availability of a revolving credit
and the fact that the Company
has operations outside of Brazil.
Moody’s: in February, Moody’s
downgraded Brazil’s sovereign
rating and maintained
the
957 million,
equivalent
to
for the year was BRL 411 million.
agencies:
line available
for withdrawal.
negative outlook. According to
approximately BRL 3.1 billion.
Of this total, approximately US$
Except for the amount of the
Fitch Ratings:
in September
Standard & Poor’s: despite
95 million will be paid in cash to
Global Agreement mentioned
2016, Fitch reaffirmed Braskem’s
the
downgrade
of
Brazil’s
the United States Department of
above, as well as other non-
global scale
rating as BBB-
sovereign
rating by S&P
in
Justice (DoJ), US$ 65 million to
monetary penalties imposed on
and changed the outlook from
February, Braskem had its global
the United States Securities and
Braskem under the terms of said
negative to stable. This change
rating reaffirmed at BBB- with
Exchange Commission
(SEC),
agreement, the Company is not
was supported by the Company’s
a negative outlook, driven by
approximately CHF30 million to the
able to predict or measure at this
strong
cash
generation,
Braskem’s solid cash position
the agency’s scale, the grade
fell two steps to Ba2. In this
sense, following the drop of
the sovereign rating, Moody’s
lowered Braskem’s risk rating
by one grade to Ba1. Even with
the downgrade, Braskem has a
risk rating above the sovereign.
Attorney General of Switzerland
time the extent of the financial
and nearly BRL 736 million to the
and non-financial
impacts,
if
Federal Public Prosecutor (MPF).
any, that the confirmation of
The remaining balance will be
the allegations, possible actions
paid by the Company as of 2018,
of other authorities, parallel
with approximately BRL 1.5 billion
investigations, or the execution
to the MPF, divided into six annual
of the Global Agreement may
payments restated according to
the variation of the IPCA8 index,
maturing on January 30 of each
year, and approximately CHF64
cause for the Company, or the
resources that may be necessary
to remedy such occurrences.
million to the Attorney General
The Global Agreement may
of Switzerland, divided into four
have
an
adverse material
annual payments, due on June 30
effect on Braskem’s business,
of each year.
reputation, financial condition,
and operating results, as well
Due to the provision of the fine
as on liquidity and the price of
referring to the Global Agreement
securities issued by Braskem.
in the fourth quarter of 2016, the
8 Broad National Consumer Price Index
2016 | Braskem | Annual Report 38
RAW MATERIALS AND SOUND
PETROCHEMICAL SPREAD LEVELS
NET REVENUE 2016
Braskem’s consolidated net
decrease in sales volume in the
revenue reached US$ 13.7
domestic market, which dropped
The average international spread
than the previous year, due
Also in 2016, the average oil
billion, which was 3% lower
1% compared to 2015.
of thermoplastic resins produced
to a combination of a larger
price was US$ 43 per barrel,
than in the previous year. The
by Braskem in Brazil remained at
propylene supply and greater
17% lower than the average
decline was explained by the
In Brazilian reais, consolidated net
a sound level, reaching US$ 677
PP demand in the US market.
price in the previous year.
8% drop in the prices of resins
revenue was BRL 47.7 billion, which
per ton in 2016, down 3% from
For the year, the average price
This drop was reflected in
and basic petrochemicals in
was 2% higher than in the previous
the previous year’s average
spread.9
of propylene in the American
the average price of naphtha
the international market, due to
year due to the depreciation of the
Gulf (USG) was 12% lower
in the international market in
lower oil prices and the new resin
Brazilian real from one period to the
compared to 2015, reaching
2016, of US$ 385/t, a drop
capacities, especially polypropylene,
next. Excluding from the analysis
Polypropylene (PP) spreads in
US$ 759 per ton due to the
in line with the drop in oil
that began operating in China
the resale of naphtha/condensate,
the United States were US$
702/t, which was 24% higher
greater availability of the input
in the region.10
prices when compared to the
during the year. Another factor
revenue increased by 1% in dollars
previous year.
contributing to the decline was the
and 6% in Brazilian reais.
9 Difference between the price of petrochemicals and the price of naphtha, ethane, and propane for the raw material mix used in the Brazilian units.
10 Difference between the price of US PP and US propylene.
2016 | Braskem | Annual Report 39
Results by
Operational Segment
in Brazil
G4-EC1
The result of Braskem in Brazil is composed of the following segments:
Basic Petrochemicals, Polyolefins, Vinyls, and Chemical Distribution.
1. BASIC PETROCHEMICALS
Production in 2016 was 8.5
The volume of export sales
million tons, 3% higher than
was impacted mainly by the
2015 and a Company historical
replacement of the exported
record, while
the
average
volume of propylene for supply
utilization rate in the year was
to the Client in the acrylic
92%, an increase of 3 p.p.
complex in Bahia and by the
compared to 2015, highlighting
the petrochemical plants of São
higher volume of transfer to
the Polyolefins segment for PP
Paulo, Rio Grande do Sul, and Rio
production. The result was 705
de Janeiro. The Petrochemical
kton, 7% less than the volume
STRUCTURE OF THE BASIC
PETROCHEMICAL SEGMENT
The Basic Petrochemicals segment owns and operates
four
petrochemical complexes in Brazil (Camaçari, Triunfo, São Paulo, and
Rio de Janeiro), where olefins, aromatics, and utilities are produced.
The total annual ethylene production capacity of these industrial units
is 3,952 kton, approximately 78% of which is naphtha-based, 16%
is gas based, and the rest is ethanol-based. Of the total ethylene
produced by the Basic Petrochemicals units, nearly 80% is transferred
for consumption in the Company’s Polyolefins and Vinyls units. The
segment’s annual propylene production capacity totals 1,585 kton and
approximately 65% is transferred for consumption in the Company’s
Polyolefins segment.
FINANCIAL OVERVIEW (BRL MILLION)
BASIC PETROCHEMICALS
4T16
(A)
3T16
(B)
4T15
(C)
VAR.
(A)/(B)
VAR.
(A)/(C)
2016
(D)
2015
(E)
VAR.
(D)/(E)
Plant of Rio de Janeiro also
recorded in 2015, which was
Net Sales Revenue
6,548
6,409
6,297
2% 4% 25,063
24,270
3%
stands out, due to the greater
partially
compensated
by
supply of ethane raw material,
the increase in benzene and
Cost of Goods Sold
(5,315)
(5,194)
(5,247)
2%
1% (20,266)
(20,053)
1%
BRL
5.6
BILLION
is the net
revenue from
exports, up
13% from
2015.
with a record utilization rate.
butadiene exports.
The segment’s net sales revenue in
Net revenue for exports was
the Brazilian market reached BRL
BRL 5.6 billion, up 13% from
19.5 billion, a 1% growth over the
that
in 2015, due
to
the
previous year, driven by greater
higher average exchange rate
sales volume of the main basic
between 2016 and 2015, in
petrochemicals to third parties,
addition to better prices of
especially the redirection of sales
some
basic
petrochemicals
of gasoline
for
the domestic
in the international market,
market, showing a growth of 66%
especially butadiene.
compared to the previous year.
Gross Income
1,233
1,215
1,051
2% 17% 4,796
4,217
14%
Gross Margin
19% 19% 17% 0 p.p.
2 p.p.
19% 17% 2 p.p.
SG&A
(186)
(198)
(202)
(6%)
(8%)
(698)
(659)
6%
Other Operating Income (Expenses)
(268)
(44)
(159)
507% 69%
(374)
(178)
110%
EBITDA for the Segment
1,076
1,274
986
(16%)
9% 4,910
4,440
11%
EBITDA Margin for the Segment
16% 20% 16% (3 p.p.) 1 p.p.
20% 18% 2 p.p.
2016 | Braskem | Annual Report 40
STRUCTURE OF THE POLYOLEFINS SEGMENT
The Polyolefins segment consists of 18 polyethylene (PE) and
polypropylene (PP) plants in Brazil, including the production of
Green Polyethylene made from renewable raw material (sugar
cane). The industrial operations include PE and PP plants
located in the petrochemical complexes in Triunfo, Camaçari,
São Paulo, Paulínia, and Rio de Janeiro, with a total production
capacity of 3,055 kton of PE, with 200 kton of Green PE, and
1,850 kton of PP.
VAR.
(A)/(B)
VAR.
(A)/(C)
2016
(D)
2015
(E)
VAR.
(D)/(E)
(8%)
(1%)
20,307
19,986
2%
4%
2. POLYOLEFINS
The
production
the
of
PE plants was 89% for the year,
Janeiro (both in Brazil), as a
Polyolefins segment
in 2016
a growth of 2 p.p. compared to
result of the improvement in the
was 4,301 kton, a
record
2015, mainly influenced by the
propylene supply from the Basic
production
of
polyethylene.
better performance of plants
Petrochemical segment.
The result was obtained due
located in the states of São
to the better utilization rate
Paulo and Rio de Janeiro. In PP
The net sales revenue of the
of the polyethylene (PE) and
plants, the average utilization
Polyolefins
segment
totaled
polypropylene (PP) plants, which
rate for the year was 86%,
BRL 20.3 billion, a growth of
also includes the production of
which was 10% higher than in
2% compared to 2015. In the
Green Polyethylene made from
2015, influenced by the better
Brazilian market, the result was
renewable raw material.
performance of
the plants
driven by a greater volume of
located in the state of São Paulo
exports and better prices in the
The average utilization rate of
and in the complex in Rio de
international market.
FINANCIAL OVERVIEW (BRL MILLION)
POLYOLEFINS
Net Sales Revenue
Cost of Goods Sold
Gross Income
Gross Margin
SG&A
4T16
(A)
4,730
3T16
(B)
5,170
4T15
(C)
4,785
(3,731)
(4,090)
(3,659)
(9%)
2%
(16,041)
(15,461)
999
1,079
1,126
(7%)
(11%)
4,266
4,525
(6%)
21%
21%
24%
0 p.p.
(2 p.p.)
21%
23%
(2 p.p.)
Other Operating Income (Expenses)
EBITDA for the Segment
(64)
694
(22)
849
(63)
829
193%
(18%)
(16%)
3,291
3,647
(10%)
(348)
(327)
(348)
7%
0%
3%
(1,304)
(1,225)
(120)
(131)
6%
(8%)
EBITDA Margin for the Segment
15%
16%
17%
(2 p.p.)
(3 p.p.)
16%
18%
(2 p.p.)
2016 | Braskem | Annual Report
41
3. VINYLS
The Vinyls segment had net
528 kton, maintaining the same
sales revenue of BRL 3 billion
level recorded in 2015, since,
in 2016, a 9% growth over the
despite the market recession, the
previous year. This
increase
Company increased sales to the
is mainly explained by higher
Agribusiness sector (irrigation
levels of PVC prices in the
tubes), reaching a market share
international market and by the
of 52%, which was 1 p.p. higher
greater export efforts adopted
than in 2015.
by the Company to compensate
for the recession of the domestic
In 2016, the average utilization
STRUCTURE OF THE VINYLS SEGMENT
The Vinyls segment consists of the industrial and commercial operations of the
PVC, chlorine, and caustic soda units, as well as other products such as hydrogen
and sodium hypochlorite. Industrial operations include three PVC plants and two
chlorine-soda plants located in the petrochemical complex in Camaçari and Alagoas.
The Company’s annual production capacity for PVC and caustic soda is 710 kton and
market.
rate of PVC plants was 84%,
an increase of 7 p.p. over
539 kton, respectively.
In 2016, exports showed a 79%
2015, and production volume
increase compared to 2015. In
increased by 10% compared to
the Brazilian market, sales totaled
the previous year.
FINANCIAL OVERVIEW (BRL MILLION)
VINYLS
Net Sales Revenue
Cost of Goods Sold
Gross Income
Gross Margin
SG&A
Other Operating Income (Expenses)
EBITDA for the Segment
EBITDA Margin for the Segment
4T16
(A)
794
3T16
(B)
740
(732)
(698)
4T15
(C)
724
(568)
156
VAR.
(A)/(B)
7%
5%
VAR.
(A)/(C)
10%
2016
(D)
3,016
2015
(E)
2,780
29%
(2,834)
(2,416)
VAR.
(D)/(E)
9%
17%
62
8%
(68)
(48)
38
5%
43
6%
(62)
0
75
45%
(60%)
22%
2 p.p.
(14 p.p.)
(64)
(42)
108
9%
-
6%
14%
(50%)
(65%)
183
6%
364
(50%)
13%
(7 p.p.)
(241)
(225)
7%
83%
(32%)
(27)
355
(49)
241
8%
10%
15%
(5 p.p.)
(10 p.p.)
13%
(5 p.p.)
2016 | Braskem | Annual Report 42
4. CHEMICAL DISTRIBUTION
(QUANTIQ)
Despite a higher sales volume,
the results of quantiQ
that
influenced mainly by the better
were reported in the Financial
performance of commodities
Statements of the report, but
such as methanol and caustic
are not included in social and
soda, the segment’s net revenue
environmental indicators. Its
ended 2016 with a result 9%
management was
already
lower than the previous year,
carried out independently even
totaling US$ 239 million. In
before the sale of the company.
Brazilian
reais, net
revenue
quantiQ was sold on 1/10/2017
was BRL 831 million, down
(signing), with closing of the
5% compared to net revenue
transaction
on
4/03/2017
in 2015. It should be noted
(closing).
STRUCTURE OF THE CHEMICAL
DISTRIBUTION SEGMENT
The Chemical Distribution segment has a portfolio of over
1,500 products. Products are classified as commodities,
performance chemicals, and specialty chemicals.
FINANCIAL OVERVIEW (BRL MILLION)
CHEMICAL DISTRIBUTION
Net Sales Revenue
Cost of Goods Sold
Gross Income
Gross Margin
SG&A
Other Operating Income (Expenses)
EBITDA for the Segment
EBITDA Margin for the Segment
4T16
(A)
190
3T16
(B)
217
4T15
(C)
239
VAR.
(A)/(B)
VAR.
(A)/(C)
(12%)
(20%)
2016
(D)
831
2015
(E)
875
VAR.
(D)/(E)
(5%)
(153)
(174)
(195)
(12%)
(21%)
(667)
(693)
(4%)
37
43
44
(14%)
(16%)
164
182
(10%)
19%
20%
18%
0 p.p.
1 p.p.
20%
21%
(1 p.p.)
(31)
(1)
6
3%
(35)
(1)
8
4%
(32)
(11%)
(3%)
(133)
(123)
8%
(2)
11
(36%)
(66%)
(18%)
(44%)
(1)
36
(5)
59
(87%)
(40%)
5%
0 p.p.
(1 p.p.)
4%
7%
(3 p.p.)
2016 | Braskem | Annual Report 43
OPERATING RESULTS
ABROAD
Braskem’s results abroad are composed of the industrial and
commercial polypropylene units in the United States and Europe, and
the Braskem Idesa Petrochemical Complex in Mexico.
UNITED STATES AND EUROPE
Due to the increased demand
demand, especially in Europe.
for polypropylene in the US and
The Company’s net revenue
European markets during 2016,
reached US$ 2.6 billion, which
the Company recorded positive
was 3% higher than in the
results when compared to the
previous year, due
to
the
previous year. In the period,
increase in the price of PP in
sales volume of polypropylene
the US market and the increase
(PP) increased 2% compared
in sales volume. In Brazilian
to 2015, due to the better
reais, net sales revenue grew
operating performance of the
8% due to the exchange rate
BRASKEM BUSINESS STRUCTURE
IN THE US AND EUROPE
Braskem has six industrial plants in the US and two in
Europe, with annual production capacity of 2,115 kton,
of which 1,570 kton are in the United States and 545
kton in Europe.
FINANCIAL OVERVIEW (US$ MILLION)
UNITED STATES AND EUROPE
4T16
(A)
3T16
(B)
4T15
(C)
VAR.
(A)/(B)
VAR.
(A)/(C)
2016
(D)
2015
(E)
VAR.
(D)/(E)
Company’s units and increased
appreciation during the period.
Net Sales Revenue
607
636
615
(5%)
(1%)
2,548
2,478
3%
Cost of Goods Sold
(472)
(446)
(462)
6%
2%
(1,750)
(2,093)
(16%)
Gross Income
135
190
153
(29%)
(12%)
798
384
108%
Gross Margin
22% 30% 25% (7,7 p.p.) (2.7 p.p.)
31% 16% 15.8 p.p.
SG&A
(48)
(46)
(37)
5%
31%
(162)
(134)
21%
Other Operating Income (Expenses)
(4)
0
(3)
-
56%
(3)
(2)
(12%)
EBITDA for the Segment
103
161
131
(36%)
(22%)
695
317
120%
EBITDA Margin for the Segment
17% 25% 21% (8.5 p.p.) (4.5 p.p.)
27% 13% 14.6 p.p.
Net Sales Revenue – BRL million
1.997
2.066
2.363
(3%)
(15%)
8.896
8.240
8%
EBITDA for the Segment - BRL million
336
524
492
(36%)
(32%)
2,461
1,110
123%
2016 | Braskem | Annual Report 44
MEXICO
In the first year of operation,
rest was exported to several
the average utilization rate of
regions, among which are Asia,
the polyethylene plants at the
Europe, and the United States.
Braskem
Idesa Petrochemical
Complex was 42%, registering
In Mexico, the sales price for
443 kton of PE production in 2016.
polyethylene (PE) is referenced
In the year, 431 kton of PE were
in the price of resins traded
sold, including resale of resins,
in the American Gulf region,
to meet the Mexican demand for
whose average amount in 2016
grades that are not yet produced
was US$ 1,115/t, which was 9%
during the ramp-up phase of the
plants.11
below 2015. In this scenario,
the net revenue recorded in
2016 was BRL 1.6 billion (US$
Of the total sold, 46% were to
474 million).
the Mexican market and the
BUSINESS STRUCTURE
OF BRASKEM IDESA
This business segment consists of an ethane-based cracker,
two high density polyethylene (HDPE) plants, and one low
density polyethylene plant (LDPE) with annual production
capacity of 1,050 kton of PE. Since May 2016, the result
of Braskem Idesa is no longer registered as a project
and became a reportable operating segment. The same
occurred with the result of the LDPE plant, but only as of
August 2016.
FINANCIAL OVERVIEW (BRL MILLION)
MEXICO*
4T16
(A)
3T16
(B)
4T15
(C)
VAR.
(A)/(B)
VAR.
(A)/(C)
2016
(D)
2015
(E)
VAR.
(D)/(E)
Net Sales Revenue
714
538
Cost of Goods Sold
(428)
(325)
Gross Income
286
214
Gross Margin
40% 40%
SG&A
(73)
(79)
Other Operating Income (Expenses)
(27)
(43)
EBITDA for the Segment
336
214
EBITDA Margin for the Segment
47% 40%
-
-
-
-
-
-
-
-
33%
32%
34%
0.4 p.p.
(8%)
(37%)
57%
7.3 p.p.
-
-
-
-
-
-
-
-
1,587
(1,017)
570
36%
(246)
(125)
530
33%
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11 Ramp-up is a term used in economics and business to define the early stage of industrial production
2016 | Braskem | Annual Report 05. Innovation
Global Compact - Principles 7, 8 and 9
BRL 275
million in
ANNUAL EXPENDITURES
ON INNOVATION AND
TECHNOLOGY
334
PROJECTS FOR THE
DEVELOPMENT OF
NEW PRODUCTS AND
PROCESSES
12.4%
IN THE LAST THREE YEARS, 12.4% OF THE SALES
GENERATED BY THE POLYOLEFIN UNIT IN BRAZIL
WERE BASED ON PRODUCTS DEVELOPED BY THE
INNOVATION AREA
45
Development of
a new Master
Plan to increase
the use of
each country’s
natural
talent for
Research and
Development
2 INNOVATION
& TECHNOLOGY
CENTERS: TRIUNFO
(BRAZIL) AND
PITTSBURGH
(UNITED STATES)
BRL 1.3 billion
FROM 2011 TO 2016, BRASKEM’S
DISBURSEMENTS IN INNOVATION AND
TECHNOLOGY TOTALED BRL 1.3 BILLION
€ 5 million
INVESTMENT IN A NEW TECHNICAL CENTER IN
GERMANY, REFLECTING BRASKEM’S PROGRESS
IN ITS INTERNATIONALIZATION PROCESS,
FOCUSING ON LOCAL CUSTOMER SERVICE
2016 | Braskem | Annual Report 46
Braskem’s strategic vision is
to support the development
of
the
industry
with
investments in innovation and
technology. The dynamics
of
its
business
activity,
influenced directly by
the
constant oscillation of prices
of commodities, requires that
the Company keep below the
industry average cost curve,
something
that
can only
be achieved by developing
new solutions that provide
greater gains in production
efficiency.
In addition, as a
result
of
the Company’s global
commitment
to
improving
sustainability, innovations are
also fundamental to reducing
the environmental
impacts
inherent
to
large-scale
industrial production and to
generating new businesses
resulting
from
disruptive
creations that can guarantee
the exclusivity of supply by
protecting the patent right.
2016 | Braskem | Annual Report 47
IN DECEMBER 2016, THE PORTFOLIO FOR
THE DEVELOPMENT OF NEW PRODUCTS AND
PROCESSES HAD TOTALED A POTENTIAL NET
PRESENT VALUE OF BRL 8.5 BILLION.
Innovation
Structure
In 2016, Braskem improved its innovation and technology structure,
equipping units and reformulating processes and strategies for
research and development (R&D).
INNOVATION IN FIGURES
302
7
1
334
Team Members
Pilot plants
Renewable Chemicals Research
Projects for the development of
Center in Campinas (SP)
new products and processes
2
2
1
10
Technical Centers: Wesseling
Technology and Innovation
Process Technology Development
New patent applications
(Germany) and Coatzacoalcos
Centers: Triunfo (Brazil) and
Center in Mauá (SP)
and 73 patent extensions
(Mexico)
Pittsburgh (United States)
2016 | Braskem | Annual Report 48
Innovation
Processes
As part of the area’s efforts,
Advisory Group, consisting of five
Braskem has consolidated a
external members, in five distinct
master plan for investments in
areas of expertise: Science
innovation activities. Based on
of matter, macromolecular
this new global action dynamic,
chemistry, polymer catalysis,
Braskem aims to increase the use
process and thermodynamics,
of each country’s natural talent
and
renewable
chemicals.
for research and development
of innovation, while stimulating
In
2016, meetings were
integration among its different
held
focusing on Braskem’s
units.
Innovation and Technology
programs,
in
order
to
The Company makes decisions
evaluate efforts undertaken in
on
innovative projects and
innovation based on scientific
investment policies in science
with the support of the Scientific
opinion and in view of global
technological trends.
2016 | Braskem | Annual Report 49
Investments
From 2011 to 2016, Braskem’s
carried out jointly with clients
INAUGURATION OF THE TECHNICAL CENTER
IN EUROPE - WESSELING (GERMANY)
With a €5 million investment, the new Wesseling Technical Center is a reflection of Braskem’s progress
disbursements
in
innovation
and partners. Contributions to
in its internationalization process and reinforces its commitment to Clients and the European market in
and
technology
totaled BRL
new structures and purchases of
developing new products and applications, which will contribute to expanding the portfolio and the technical
1.3 billion. This is a strategic
equipment in 2016 totaled BRL
assistance provided.
PROCESS TECHNOLOGIES DEVELOPMENT
LABORATORY (LDTP)
Located at the Mauá petrochemical complex in São Paulo (Brazil), the LDTP received an investment of BRL 4.4
million in 2016 to modernize and acquire equipment, which will make it possible to strengthen the development
of resin production process technologies, basic petrochemicals, and specialties.
investment, since it also serves
31 million.
to support innovation initiatives
TECHNOLOGY AND INNOVATION
CENTER, TRIUNFO (RS)
Among
kayaks, and agricultural parts,
the most outstanding
contributions during the year was
mainly geared toward the civil
the investment of BRL 2.2 million
construction and retail markets.
to qualify the Technology and
The investment also includes a
Innovation Center in Triunfo (RS).
micronizer and auxiliary equipment
Rotomoulding equipment was
acquired, a segment characterized
that will be used to support Clients
with the new developments. The
by the production of large, hollow
inauguration event of the new
pieces, such as water tanks,
laboratory will take place in 2017.
cisterns, children’s playgrounds,
TECHNOLOGY AND INNOVATION
CENTER, PITTSBURGH
(UNITED STATES)
At the Technology and Innovation
tools available in polymer science
Center in Pittsburgh, Braskem
laboratories. The
investment
invested US$ 845,400 (BRL 2.3
allows Braskem to access this
million) in upgrading the Nuclear
state-of-the-art technique and
Magnetic
Resonance
(NMR)
seeks to expand and intensify
equipment. NMR is one of the
the understanding of modified
most powerful structural analysis
polymer resins and catalysts.
2016 | Braskem | Annual Report Products and
Solutions
Development
G4-8, G4-EN27
Braskem’s growth strategy
is
products developed by
the
based on developing sustainable
Innovation area.
and value-added solutions for
different production chains that
In 2016, the Company supported
use plastic as an essential raw
470 Clients, with the aid of
material when manufacturing its
20,000 support analyses from
end products.
the Technology and Innovation
Center of Brazil, and another
To this end, the Company makes
60 Clients with approximately
significant investments in the
16,000 analyses in the United
research and development (R&D)
States.
of new products and services
adhering to its Clients’ business
Regarding patents, the Company
models in the various sectors of
submitted
10
new
patent
the processing industry. In the
applications and 73 patent
last three years, 12.4% of the
extensions.
Throughout
its
sales generated by the Polyolefin
history, Braskem has contributed
Unit in Brazil were based on
1,030 patent documents.
50
Completing
NEW BRASKEM RESINS AT K FAIR
For
other materials, and excellent
time, Braskem
the fifth
transportation.
participated in the 2016 K Fair in
thermal and acoustic insulation, in
the current portfolio, Braskem
Frankfurt (Germany), the main
addition to being totally recycled.
Flexus Cling
is
recommended
international event in the plastics
and rubber industry. The Company
With this resin, Braskem intends
to establish partnerships for the
for composing the outer layer
of the film, providing the end
exhibited a portfolio of innovative
development of new applications
product with excellent handling
solutions developed throughout
in
the automotive,
industrial,
performance and low unwinding
the year, among which we highlight
packaging, civil construction, and
force.
the launch of Braskem Amppleo, a
home appliances markets.
polypropylene resin with High Melt
Braskem Rigeo Lumios: New
Strength properties. The resin,
In addition to Braskem Amppleo,
polyethylene resin that provides
which was specially developed
Braskem
presented
other
high gloss and better finish for
for
the production of high
innovative solutions during the
hard blown-moded packages.
performance foams, can withstand
fair. Among them, the following
This launch is in line with the
temperatures up to 100°C without
stand out:
deforming, and enables
the
market
trends and expands
the supply of products to the
manufacture of products with
Braskem
Flexus
Cling®:
packaging markets for cosmetics,
widely versatile applications within
Specially developed for stretch
hygiene
and
cleaning,
and
a large density range (from 35
film extrusion, the polyethylene
food, resulting in an even more
kg to 300 kg per cubic meter),
resin primarily serves the market
complete portfolio with greater
a reduced weight compared to
of
cargo
protection
during
value added.
2016 | Braskem | Annual Report Braskem Plastic in Space
After
over
a
year
of
operation and a NASA supplier.
first piece made from Green
research,
in 2016, Braskem
The
technology enables
the
PE created off the Earth was
completed
the
project
to
manufacture of tools and spare
a pipe connector for irrigating
develop a solution in Green
parts in space made of resin
vegetables.
Polyethylene
for 3D printing
of
renewable origin, giving
in zero gravity environments.
space missions more autonomy.
The equipment, which will make
The project was conducted
Braskem’s Green Plastic is now
through a partnership between
being used
to create parts
several types of parts with the
I’m greenTM Polyethylene (green
plastic), is at the International
Braskem’s
Technology
and
in space using the Additive
Space Station (ISS) and was
Innovation team and Made In
Manufacturing Facility
(AMF)
developed by Made In Space
Space, a leading North American
printer.
Braskem’s
UTEC
with
the support of CASIS
company in the development
(UHMWPE) was used in the
(Center for the Advancement of
of 3D printers for zero gravity
creation of the printer. The
Science In Space).
A
S
A
N
:
t
i
d
e
r
c
o
t
o
h
P
51
A
S
A
N
:
t
i
d
e
r
c
o
t
o
h
P
2016 | Braskem | Annual Report
52
WECYCLE
Wecycle, Braskem’s Brazilian
resins, which, previously, were
BRASKEM LABS
In 2016, Braskem held
the
monitored by a Braskem Leader,
relevant to the companies were
platform
for
the
recovery
being discarded. Approximately
second
edition
of
Braskem
selected
according
to
the
made on behalf of Braskem
of plastic waste along
the
120,000 big bag packages will
Labs, an incentive program for
similarity between their business
Labs. Half
the entrepreneurs
production
chain,
achieved
be
recycled annually, which
entrepreneurs that have solutions
experiences and the challenges of
said that the program generated
important advances throughout
should generate a potential
focused on sustainability and
each entrepreneur, having received
business for their company, and
2016.
volume of 30 tons per month
of post-consumer recycled resin
innovation,
and
have
social
at least four sessions of individual
75% developed
improvements
impact. The program, developed
and collective mentoring on topics
in their solution or even made
The
first polypropylene and
(PCR). The novelty may be
in partnership with Endeavor - a
relevant to their business, as well
a new product. Another 67%
polyethylene resins made from
applied in household utilities,
global, non-profit organization
as contents online, tailor made by
obtained investment in 2016, and
fully
recycled content were
garden products, and lids.
fostering entrepreneurship - has
Endeavor. Through the program,
two entrepreneurs attributed the
launched. Combined production
broadened
its
thematic scope
entrepreneurs also have access to
result directly to their participation
volumes can reach 50 tons
Possible
applications
of
by accepting applications
for
a network of strategic players in
in the program. The overall
per month. Braskem works in
polyethylene WCL L004 SCV
chemical solutions, as well as
their market - including potential
evaluation uses the Net Promoter
partnership with recyclers
in
include
bags,
laminated
looking at proposals for social
Clients, partners, and investors,
Score methodology, which shows
São Paulo, which undergo an
containers, tarpaulins, flexible
and environmental solutions for
as well as several Braskem teams,
how much the participants would
audit process
that assesses
packaging, and tubes, and it
plastic. As a special topic of the
such as Innovation, Sustainability,
recommend the experience to
legal, environmental, and social
is produced
from used and
year, Braskem Labs will also select
and Marketing.
issues, as well as product
discarded bags at Braskem
two projects to combat the Aedes
another entrepreneur at the same
level. The result, of 9.1 out of a
quality.
Distribution Centers. The total
aegypti mosquito.
In all, 54 mentors became
possible 10, indicates the highest
volume of recycled resin can
involved with
the program,
level of satisfaction and confirms
The polypropylene WCL H
reach 20 tons per month in 2017,
In 2016, Braskem Labs received
between Braskem Leaders and
that respondents will indeed act
1003 BBM is produced from
which represents the monthly
190 registrations, an increase of
mentors
from
the Endeavor
as promoters of the program.
recycling big bags used by the
recycling
of
approximately
19.5% over last year. Of the total,
network.
The
entrepreneurs
Company when
transporting
200,000 bags.
12 projects sent by young Brazilian
participated in three classroom
entrepreneurs
from
the states
training events and closed the
of São Paulo, Santa Catarina,
program with Demo Day, where
Rio Grande do Sul, Amazonas,
they presented their solutions
and Pernambuco, were selected
to an audience of 180 Braskem
for development. The selected
investors, mentors, partners and
proposals were chosen considering
clients.
the innovation of the proposal,
the business model, social impact,
At
the end of
this edition,
market potential, and entrepreneur
Braskem spoke with participating
profile of the proponents.
entrepreneurs
seeking
their
Participants were
individually
all, 48 business connections
evaluation of the program. In
LEARN ABOUT THE
PROJECTS SELECTED ON
BRASKEM LABS
WEBSITE
(portuguese only)
2016 | Braskem | Annual Report ODEBRECHT BRASKEM
DESIGN CHALLENGE
The Odebrecht Braskem Design
A total of 24 students participated
Challenge is an initiative that
in the Challenge (forming eight
encourages university students to
teams) from four institutions
develop innovative applications
with
traditional Architecture
in plastic for urban furniture. In
and Design courses: Pontifícia
2016, in its fourth edition, the
Universidade Católica do Rio
Company expanded the project
de Janeiro (PUC Rio), Rio de
and took it to Rio de Janeiro with
Janeiro State University (UERJ),
the goal of using the winning
Federal University of Rio de
pieces in public areas of Porto
Janeiro (UFRJ), and Fluminense
Maravilha, the central region of
Federal University (UFF).
the city that has undergone a
revitalization process.
With the central theme “Urban
furniture for transforming spaces,”
Braskem offered challenges to the
participating university students
divided in two categories: Food
and Artistic Presentations; Rest
and Work. The winners were,
respectively,
the
Fluminense
Federal University
(UFF) and
the Federal University of Rio de
Janeiro (UFRJ).
53
SPONSORING THE BRAZILIAN
PARA-ATHLETIC TEAM
Overcoming is improving yourself every day. With this motto, Braskem, sponsor of the Brazilian Para-
athletic Team since September 2015, reinforced the para athletes’ ability to overcome through the
sport. In Brazilian para-athletics, plastic has a practical application, since it is part of the composition
of prostheses, making them lighter and better adapted to the athletes’ legs, improving performance
and comfort.
In 2016, Braskem renewed its partnership with the Association for Assistance to the Disabled Child
(AACD) and donated 18,000 tons of polypropylene to produce approximately 24,000 products, such
as prosthetics, vests, and orthopedic appliances, among others.
2016 | Braskem | Annual Report 54
Life Cycle
Assessment
Leader in industry initiatives to
stages of manufacturing, power
strengthen
the environmental
generation, and transport.)
attributes of plastic, Braskem
Between 2011 and 2016, a total
has been developing several
of 41 Life Cycle Assessments and
projects based on Life Cycle
five Carbon Footprint studies
Assessment (LCA) studies, a
were completed, identifying the
technique used by the Company
advantages and priority areas for
since 2005
to assess
the
product improvement.
environmental aspects and the
potential
impacts
associated
In addition, a methodology
with
the product (from
the
was developed to identify the
extraction phase of raw materials
alignment of the development
from nature to final disposal
projects of new thermoplastic
after use, going through all
resin
applications with
the
Sustainable Development Goals
(SDG). In 2016, the alignment
level of the project pipeline was
84%. This action reinforces the
Company’s role as a provider of
social and environmental solutions
for society and its purpose of
improving people’s lives through
chemistry and plastic.
Throughout the year, Braskem
completed a total of ten Life
Cycle Assessment studies, among
which the following stand out:
Recycled Plastic Resins
Casa Clic
In 2016, Braskem presented
who use recycled materials in new
seeks to reduce the volume of
In 2016, Braskem conducted
study, carried out in partnership
environmental
profiles
of
packaging. The project, the result
disposable packaging in landfills.
an LCA study comparing the
with GoClic (a participant of
the mechanical
recycling of
of the Wecycle platform launched
In LCA studies, these materials are
PVC plastic solution applied to
Braskem Labs), is aligned with
polyethylene and polypropylene,
in 2015, aims
to
stimulate
capable of reducing environmental
housing construction innovation
the Sustainable Development
promoting reduced environmental
consumption of recycled plastic
impacts associated with industrial
with
a
similar
traditional
Goals of the United Nations
impact of those who provide
resins, and is in line with the
production by 35%.
masonry construction. The result
(SDG 11), which aims to address
material for recycling and those
national solid waste policy, which
was
improved environmental
the housing deficit in the world
performance by about 16%. The
using sustainable solutions.
2016 | Braskem | Annual Report 06. Stakeholders
Global Compact – Principle 1, 2, 3, 4, 5, 6 and 10
55
1.2%
IN BRAZIL, THE VOLUNTARY TERMINATION RATE
FOLLOWED THE DOWNWARD TREND OF RECENT
YEARS: 1.2%.
77%
FAVORABILITY
IN THE WORK
ENVIRONMENT
SURVEY
Braskem’s social investment in Brazil totaled
approximately BRL 26 million in social and
environmental and cultural projects. In the United
States and Germany, Braskem invested over BRL
550,000, and in Mexico, BRL 1.3 million.
7,656
TEAM MEMBERS
AROUND THE WORLD
90%
OF PROFESSIONALS
WOULD RECOMMEND
BRASKEM TO A
FRIEND WHO IS
LOOKING FOR A JOB
2016 | Braskem | Annual Report One of Braskem’s fundamental principles is the practice of responsible management, based on trust
and transparent dialogue with all its stakeholders, among which we highlight the Team Members,
Communities close to their business activities, Clients, Suppliers, and Government, in their different
spheres. Through coherent initiatives dedicated to each of these stakeholders, the Company seeks
to integrate links, aiming to improve the life of society through sustainable solutions using chemistry
and plastic.
Team Members
Global Compact - Principle 6
Braskem has a Management
constant concern with training
the continuous evolution of
its
Policy that puts people at the
new generations and qualification
management model. In 2016, the
center of its Business strategy.
of people to be an integral part
Company achieved the voluntary
The organizational culture of the
of Braskem’s construction of the
participation of 82% of its Team
Company is based on principles
future.
that guide its actions with values
Members, and the survey grew by
nine percentage points compared
such as trust in people, planned
Periodically, in partnership with Great
to the previous edition, in 2013,
delegation, proximity between
Place to Work consulting, Braskem
reaching a favorability rate of 77%.
Leaders and Subordinates, open
conducts a Work Environment
This result indicates an evolved
communication,
creation
of
Survey in all the countries where
positive perception of the work
a positive work environment,
it is present, in order to support
environment offered by Braskem.
56
Work
Environment
Survey
DESIRE
TO STAY
88%
of the respondents
intend to work at
Braskem for a long time.
MOTIVATION
89%
of Team Members say
they enjoy going to work.
PRIDE
90%
of professionals would
recommend Braskem
to a friend who is
looking for a job.
2016 | Braskem | Annual Report 57
TOTAL NUMBER OF TEAM MEMBERS
BY GENDER AND REGION13
G4-10
DIVERSITY
G4-10, G4-LA12
Braskem closed the year 2016
operations
(Alagoas, Bahia,
note that in the administrative
One of the key initiatives of the
with 7,656 Team Members,
Rio de Janeiro, São Paulo, and
areas, women represent 52%
people strategy is centered on the
LGBT14 Rights, standing out as
the first large Brazilian company
of which 6,005 were men
Rio Grande do Sul), 711 in the
of the workforce, with 23% in
Diversity Program. The program
to
adopt
this
commitment
and 1,651 were women. Of
United States, 752 in Mexico
Leadership positions and 52%
aims to stimulate an increasingly
through
the Companies and
this total, 5,976 worked in
and 174 in Germany, as well as
in young professional programs
inclusive
environment
at
LGBT Rights Forum.
industrial units and offices
43 professionals in commercial
(Young Apprentice, Technical
Braskem and
foster
learning
located in the five Brazilian
offices throughout the rest of
Internship, University,
and
through
differences,
based
In addition, several actions are
states where Braskem has
the world. It is important to
Associate Program).
on respect for how each one
already in progress and were
Brazil
United
States
Germany
Mexico
International
Offices
expresses him or herself
in
reinforced
throughout 2016.
society. Braskem believes that
Focusing on gender equality,
Total
this initiative not only enriches
Braskem held two editions of
%
1
2
%
9
7
%
9
1
%
1
8
%
3
3
%
7
6
%
2
2
%
8
7
%
0
4
%
0
6
%
1
2
%
9
7
1,279
4,697
133
578
58
116
164
588
17
26
1,651
6,005
Total
5,976
Total
711
Total
174
Total
752
Total
43
Total
7,656
Braskem closed the year 2016 with 7,656 Team Members.
the work environment, but
the Braskem Women’s Forum,
is also essential for Business
promoting lectures on the role
Survival, Growth, and Perpetuity.
of women in the labor market,
in order
to engage Team
As an evolutionary process
Program,
of
the Diversity
the
Members and
importance of this aspect. The
reinforce
throughout 2016, Braskem took
lectures were attended by Carla
two
important steps towards
Tieppo, addressing the topic
equality, through its commitment
“Female and Male Brains,” and
to
the Gender and Race
Ana Paula Vitelli, who spoke on
Equity Program of the Federal
the “Including women in the
Government, and to the Charter
labor market and promoting
of Business Commitments and
gender equality in companies.”
13 In order to clarify the scope of this material, it is worth mentioning that the results of
quantiQ were reported in the Financial Statements of the report, but are not considered
in the social and environmental indicators. Its management was already carried out
independently even before the sale of the company. quantiQ was sold on 1/10/2017
(signing), with closing of the transaction on 4/03/2017 (closing).
14 Acronym for Lesbian, Gay, Bisexual, Transvestite, Transsexual
2016 | Braskem | Annual Report 58
These initiatives are part of an agenda that integrates the Gender Equality
Program, created in 2015 by Braskem and divided into four pillars:
PEOPLE DEVELOPMENT
Attracting and developing people to support planned growth is another important part of Braskem’s P&O
1. Women’s careers: aims to promote the empowerment of women
strategy. Throughout 2016, the Company invested BRL 19 million in various training actions, trained 6,968
in their careers, as well as foster the number of women in leadership
Team Members, with an average investment of BRL 2.7 thousand and 32 training hours per Team Member.
positions at Braskem.
2. Maternity and paternity: provides support so that women and
men may make the most of this phase of life.
3. Health and well-being: supports health and wellness actions for
women and men, such as Pink October and Blue November.
4. Procurement and communities: brings Braskem a greater number
of women suppliers and encourages the practice of diversity programs
in the Company’s sector of activity, and promotes the empowerment
of women through social programs in the communities.
Respect and Equality
The presence of women in environments and occupations that
were previously predominantly male has become increasingly
common. Aware of this need, especially in the production
units, in 2016 Braskem implemented specific breastfeeding
support rooms for the withdrawal and storage of breast milk
in all its units in Brazil. In addition, the Company adapted
73 bathrooms in Brazilian industrial plants, adapted work
uniforms for pregnant women, defined parking spaces for
pregnant women at all locations, and extended the period of
maternity leave granted to female Team Members to 180 days.
The results of these initiatives led Braskem to be nominated,
in its first year of implementation of the Program, as a finalist
in the WEPs (Women Empowerment Principles) Award of UN
Women, receiving honorable mention for its work promoting
gender equality.
Investment of
BRL 19 million
in training
Average investment of
BRL 2.7 thousand
per Team Member
Training of
6,968
Team Members
32
training hours per
Team Member
Throughout
the year, Braskem
development of the existing Leaders
new Team Members in the
improved the execution of several
at the Company. Some of the main
culture and values of the
programs
focused on a better
training conducted in 2016 was:
Company.
work
environment,
integration,
qualification,
and
training
of
• Culture and Integration
• Global
Leadership
Team Members, and on preparing
Program (Global): 2,660
Development Program:
Leadership
to deal with
the
people participated
in a
Braskem trained 30 Leaders in
challenges of
the Company’s
number of actions in the units
the Global Leaders Program,
continuous and structured growth.
and offices where Braskem
which
aims
to
develop
Braskem
operates
based
on
operates in Brazil, the United
professionals aligned with the
Leadership Trails, a set of programs
States, Mexico, and Germany,
Company’s internationalization
structured according to the stages of
with the purpose of training
strategy.
2016 | Braskem | Annual Report • Development
Programs
for
It is important to highlight the Company’s commitment to training local
Team Leaders and Area Leaders
corporate leaders, in order to ensure the diversity of the management
(Brazil):
participation
of
60
team and strengthen human capital with the participation of members
coordinators and 30 managers,
of the local community in decision-making processes. In 2016,
respectively, with
the objective
Braskem ended the year with 53% of senior management from local
of
improving
the performance
communities in Brazil, 1% higher than the previous year.
as Educating Leaders,
through
reflection, education through work,
and sharing experiences.
•
Leadership
Development
Program (USA and Mexico): in
RATIO OF SENIOR
MANAGEMENT HIRED WITHIN
THE LOCAL COMMUNITY15
the United States, 70 professionals
G4-EC6
from the first two stages of leadership
were developed through the Program.
In Mexico, 29 leaders participated in
2014
2015
2016
2016.
Brazil
52%
52%
53%
•
Leadership
Self-Development
Platform (Brazil, Mexico, and
United States): an online platform,
focused on the development of
Team Leaders, Technical Team
United States
-
-
-
59
situations,
seeking
BRASKEM YOUNG
PROFESSIONALS
The
for professional
search
vulnerable
improvement at Braskem also
their
inclusion
in
the
labor
involves
young
professionals
market. In 2016, Braskem used
looking to the Company to take
social networks to impact this
the first steps in their career.
Through its own programs, and
audience with the opportunities
offered, disseminating content
others developed in partnership
that helps young adults to direct
Leaders, and Area Leaders
in
Germany
36%
63%
67%
with entities such as SENAI
their career and learn about the
Braskem’s Culture competencies
through videos, e-learning, and
actions scripts. The platform will be
launched in Germany in 2017.
15 To calculate this ratio, Team Members
of senior management, Team Members of
grades 3 to 10 and who have Subordinates
are considered. These grades include
managers, directors, vice presidents and
president. To calculate the number of
Leaders from the local community, the
number of Senior Management Leaders
versus the place of birth is used, with the
exception of the United States, which does
not have this information for legal reasons.
Mexico
62%
21%
26%
(National
Industrial
Learning
day-to-day work of the Company,
Service),
technical
education
based on statements from various
colleges, and universities, Braskem
professionals. In total, nearly five
works toward the development
million young adults were impacted
and training of its future Team
by the Company’s social networks.
International
Offices
Total
-
-
38%
0%
Members.
Young Technician and Young
49%
49%
Young Apprentice Program –
Partner
Brazil
Focused
on
training
future
With a duration of one year and
technicians, engineers, analysts,
a half, the program enables the
and
other
professionals
in
development of the professional
Braskem’s operations, the Young
skills
and
competencies
of
Technician and Young Partner
young adults living in socially
programs are
structured
for
2016 | Braskem | Annual Report people taking Technical Education
By strengthening its relationship
Rio de Janeiro, and Rio Grande
Young Operator Program -
Development Program
(PDCT)
and university courses. These
with
educational
institutions,
do Sul, to promote Braskem’s
Brazil
were formed for the Operation
programs, which may last one or
the Company has continuously
brand and make contact with the
Aimed
toward educating young
and Maintenance teams, involving
two years, annually offer internship
made progress
identifying new
university audience.
adults wishing to build a career in
134 Team Members.
60
opportunities in locations in Brazil
professionals and strengthening its
where Braskem has
industrial
position as a Company capable of
operations: Mauá (SP), Paulínia
attracting young adults willing to
(SP), Duque de Caxias (RJ), Triunfo
learn and contribute to the growth
(RS), Maceió (AL), and Camaçari
of their career and the Company.
(BA), and at the other administrative
offices of the Company.
Thus, in 2016, Braskem began
a partnership with
the Junior
In the United States, the 2014 class
Business Federations of the states
of Associates closed with three
of Rio Grande do Sul, Bahia, and
associates, two engineers and one
Rio de Janeiro, supporting young
business associate. In addition, four
professionals
in
their academic
trainees participates in the Science
Without Borders16 program and 16
participated as summer interns.
environment.
In addition,
the
Company participated in a total of six
events at universities in São Paulo,
ACTION PROGRAM CYCLE
G4-LA11
The technical and
university internship
programs had nearly
32,000 registrations
in 2016. The number
of university
students enrolled
increased 22%.
the Industrial Operations industry,
the Young Operator Program is
Also
in
partnership
with
carried out in partnership with SENAI
SENAI, in the states where the
and lasts for 18 months. In 2016, the
Company has production units,
program enrolled 4,541 young adults
the
Petrochemicals
Technical
and qualified 219 operators.
Course began to be offered, with
program content aligned with
Continuing
the education and
the demands of the industry and
development process of Braskem’s
with the technical training needed
technicians and operators, over
to prepare new chemical and
3,900 Team Members participated
petrochemical process operators.
in specific educational actions, such
as seminars, technical forums,
and e-learning. In addition, four
classes of the Technical Skills
Each Team Member has the
throughout the year, through
identifying
opportunities
for
opportunity to talk with his or
dialogue between the Leader
improvement to be included in
her Leader in order to align their
and his or her Subordinate.
the Program for the next period,
thoughts on the challenges for
The Action Program
cycle
or in the Plan of Education for
the work year, the resources
consists
of
four
stages:
Work, which includes actions to
needed to carry them out, and
Planning/Pact,
Monitoring,
support Continuing Education
what support will be fundamental
Assessment, and
Judgment.
and
recommendations
to their success. This is recorded
The assessment takes place at
corporate
programs.
for
The
in the Action Program (PA),
the beginning of the following
process is carried out at the
operates in Brazil, the United
States, Mexico, and Germany.
All Team Members have an
Individual
Action
Program,
which is required in order to
receive variable remuneration,
which is linked to the level of
achievement of the goals and
alignment with the Company’s
which is monitored and assessed
year and serves as a basis for
units and offices where Braskem
organizational values.
16 The Science Without Borders Program is an initiative of the Brazilian Government, Ministry of Science, Technology and Innovation (MCTI), Ministry of Education (MEC) and of its respective partnership
institutions (CNPq and Capes) and MEC’s Departments of Higher Education and Technological Education of MEC to promote the consolidation and internationalization of Brazilian science and technology
through international exchange and mobility.
SALARIES
AND BENEFITS
G4-EC5
Braskem has a global competitive
remuneration
strategy
in
all
locations where it operates. To
support this process, periodic salary
surveys are carried out to assist in
updating internal benchmarks and
revisions of the Team Members’
monthly and variable remuneration.
Monthly remuneration is based on
ranges with the purpose of making
team remuneration management
flexible, differentiating
the skill
levels of the Team Members, and
applying the concept of meritocracy.
Monthly remuneration ranges were
determined based on the following:
2016 | Braskem | Annual Report 61
•
85% of the market median
for
the
initial
amount
(Development Range)
• Market median at the central
benchmark (Target Range)
•
115% of the market median
for the maximum amount
(Advanced
Performance
Range)
Variable remuneration, carried out
in the form of Profit Sharing (PLR),
is aligned with Braskem’s strategy
and culture, making it possible to
attract and retain talent. Its main
objective is to stimulate achieving
the best results and to recognize
LOWEST SALARY VERSUS
LOCAL MINIMUM WAGE
RETIREMENT
G4-LA10
SP
RJ
BA
AL
RS
2015
2016
1.7
2.2
1.6
1.5
1.8
2.9
2.0
3.6
1.8
2.2
1.6
1.5
1.8
3.1
2.0
3.5
For Team Members who intend to retire from units in Brazil, Braskem offers
the Horizons program, which, for a year, prepares and supports professionals
and their families for the post-career transition process. The program consists
of four modules, totaling 40 hours, and has two fundamental pillars:
1. Reflection of life and career: process of awareness about the
new stage of life that is approaching.
2. Knowledge management: ensure the continuity of the Company’s
business through a structured process of knowledge transfer
acquired by each Team Member throughout his or her career that
are important for Braskem’s succession process.
Brazil
United States
Germany
Mexico
individual performances. The main
G4-LA2
individual challenges are included
in the Action Program (PA) of each
Team Member, and the calculation
basis
includes
indicators such
as operating EBITDA, working
capital variation, and operational
investment (CAPEX).
The variation in the ratio of the
Company’s lowest salary compared
to
the
local minimum wage
remained stable throughout 2016,
with a slight increase of 1 and 2
points, respectively, in the state of
São Paulo (Brazil), and in the United
States. It is worth mentioning that
the salaries at Braskem are equal
for men and women within their
respective positions.17
At Braskem, benefits are offered from the time of hiring and there
is no distinction between full-time, part-time or fixed-term Team
Members.18.
• Health and Dental Plans (Brazil, Mexico, and the United States)
• Private Pension – Odeprev (Brazil, United States, and Germany)19
•
Life Insurance Life Insurance 16 (Brazil, Mexico, United States, and
Germany)20
• Child Care Assistance (Brazil)
• Maternity and Paternity Leave (Brazil, Mexico, United States, and
Germany)21
• Meal vouchers (Brazil); food stamps (Mexico); discounts at nearby
restaurants with Braskem directly paying the restaurant (Germany)
• Disease Support (Brazil)
• Special Child Assistance (Brazil)
17 The calculation used includes the lowest salary offered by Braskem, using the Hay table
(table of positions and salaries established by Braskem), considering 85% of the range
(least % of range varying between 85 and 115) from the lowest position at the Company
versus the local minimum wage that is established by the collective bargaining agreement,
in the case of Brazil, and the local minimum wage for non-union Team Members.
18 Currently, Braskem does not have Team Members in Brazil hired for a fixed term, only
Apprentices (16), who are hired according to the country’s own regulations. In Germany,
there are three Team Members hired for a fixed-term.
19 Braskem provides private pension plans in Brazil, the United States and Germany, with
the purpose of supporting the Team Members in the planning and preparation of their post-
career period and their retirement. In Brazil, Braskem offers the supplementary pension
plan called ODEPREV - Odebrecht Previdência, put together sustainably, without risks of
actuarial imbalance, with a defined contribution format, exclusive to Team Members of the
Odebrecht Organization.
20 ODEPREV – Odebrecht Previdência offers participants a social security insurance
(PrevSeguro), which extends the financial protection of the Plan Participants and/or their
relatives, in case of death (natural or accidental), or total and permanent disability (due to
illness or accident), occurring before the age of 65.
21 Braskem tracks the exit and return indicator of maternity leave only in Brazil, and does
not monitor this in other countries. In 2016, a total of 33 Team Members utilized the
benefit, and 29 was the number of Team Members who returned to work after the maternity
leave period. (G4-LA3)
2016 | Braskem | Annual Report 62
HIRING AND TERMINATION
G4-LA1
In 2016, the Company had the lowest turnover in its history, with rates of 1.9% in global operations and 1.2% in Brazil. This is the best result in the Brazil since 2009.
VOLUNTARY TERMINATION RATE22
2015
Women
Men
Women
Men
3.36%
1.50%
5.83%
6.10%
3.77%
1.80%
1.82%
2.20%
3.41%
2.00%
Overall
1.90%
Overall
6.20%
Overall
2.90%
Overall
2.30%
Overall
2.40%
3.40%
0.80%
6.50%
3.50%
4.90%
0.00%
2.70%
4.20%
3.60%
1.40%
2014
Overall
2.33%
Overall
5.12%
Overall
3.13%
Overall
1.99%
Overall
2.54%
Men
2.04%
4.95%
2.80%
2.03%
2.29%
2016
Overall
1.20%
Overall
3.40%
Overall
3.50%
Overall
4.90%
Overall
1.90%
Women
2.80%
3.00%
10.30%
7.40%
3.60%
Brazil
United States
Germany
Mexico
Overall
In addition, Braskem maintained the hiring average when compared to the previous year. The ratio of women hired in the period was higher than that of men for the period, almost
the same level as in 2015.
Overall hiring rate
Men
8.60%
2014
Overall
9.72%
Women
Men
Women
Men
2015
13.70%
6.30%
Overall
7.00%
9.20%
6.70%
2016
Overall
7.20%
Women
9.10%
On the other hand, the total number of people terminated was much lower when compared to 2015. In total, 561 Team Members were terminated in 2016, which was 124 fewer people than
in 2015.
22 In order to clarify the scope of this material, it is worth mentioning that the results of quantiQ were reported in the Financial Statements of the report, but are not considered in the social and environmental indicators. Its management
was already carried out independently even before the sale of the company. quantiQ was sold on 1/10/2017 (signing), with closing of the transaction on 4/03/2017 (closing).
2016 | Braskem | Annual Report 63
FORMAL AGREEMENTS
WITH TRADE UNIONS
G4-LA8
Braskem respects trade union
agreements
(which
includes
representation in all locations
economic,
social,
safety,
where it operates and focuses
environmental, and trade union
on local labor legislation as
issues), as well as agreements
the minimum standard for the
concerning working hours, and
Company’s obligations
to
its
profit sharing. In addition, in
Team Members. It is part of
Brazil,
representatives
from
Braskem’s activity to maintain
Labor and Trade Union Relations
an open channel for dialogue
conduct regular training with
so that formal agreements are
Company Leaders in order to
made wherever necessary.
keep them updated on this
aspect. In 2016, there were 48
In Brazil, collective bargaining
meetings in which 470 Team
discount of monthly and union
Energy, and Gas Workers. Based
to review the Profit Sharing
agreements are carried out
Members were trained.
contributions.
Commitments
on an open and transparent
Program.
annually, on
specific dates
the
in each
Company has operations, and
region where
for
Confirming
freedom of association in each
respect
its
regarding the agreements are
dialogue,
the
committee
included in the Action Program
(PA) of each Team Member,
convenes every month to be
informed about the metrics and
In the United States, the labor
includes monthly
agreement
the possibility of extending
region of activity, Braskem
and are submitted to a formal
projects under development
meetings of
the Health and
rights provided
for
in
local
has Team Members who are
assessment that is documented
to improve awareness toward
Safety Committee. The main
legislation are discussed. There
part of trade union leadership.
quarterly.
health and safety in the work
objectives
and metrics
are
is also collective bargaining
It is also important to note
environment.
between Braskem, the Workers’
that the collective bargaining
In line with its global operation,
managed and monitored by a
Safety Management Process, and
Commission, and the Union, to
rules that have been signed
Braskem
respects
trade
Also regarding Mexico, collective
the data is evaluated monthly
sign an agreement regarding
contain clauses
that affirm
union representation in all its
work norms contain clauses that
by the Unit Leaders and by the
the Profit Sharing Program.
the policy of respect for trade
locations. In Mexico, Braskem
confirm the policy of respect for
Committee which, according to the
union activities, which relate
Idesa operates according to the
union activities and freedom of
results, may initiate investigations
The
representatives
of
to the access of union leaders
processes of SEMPRE (Integrated
association. Regarding collective
and make recommendations for
Braskem maintain regular and
to factories; remuneration of
Health, Safety, and Environment
bargaining agreements, every
improvement. Germany does not
constant dialogue with union
union leaders for the exercise of
System) and OSHA’s Health and
year, representatives of Braskem
have in place formal agreements
representatives. The Labor and
union leadership; payment for
Safety Certification, and is part
Idesa participate in the review
on health and safety, since
Trade Union Relations area is
union leaders who are absent in
of the Executive Committee of
of negotiations and collective
there are several government
responsible, in each region, for
order to participate in external
the National Union of Chemical,
bargaining agreements. Each
regulations and follow-ups on
the negotiation of base date
events related to union activity;
Petrochemical, Carbochemistry,
year, a committee is also elected
these topics.
2016 | Braskem | Annual Report 64
Communities
G4-EC7, G4-EC8, G4-SO1
INVESTMENTS
In 2016, Braskem and its Team
Germany) in philanthropic donations,
Members invested BRL 27.5 million
benefiting over 60 organizations or
Aiming to improve people’s lives
the visibility and
familiarity
1. Boost human development
in social and environmental, cultural,
programs focused on the benefits
through sustainable solutions in
of Company actions. These
by stimulating the growth of
and sports projects in Brazil, divided
of plastic in people’s lives and in
chemistry and plastic, Braskem
projects, carried out with the
the people who make up our
into three areas:
the fields of science, technology,
has
defined
four
strategic
Communities surrounding
the
Communities.
•
Private Social Investment
engineering and mathematics. One
objectives
for
its social and
operations and also nationally,
2. Promote
social
and
Projects (ISP): BRL 4.9
of the biggest contributions in the
environmental
responsibility
focus on strategic aspects such as
environmental development
million.
United States was made to United
projects:
Generate
social
recycling, incentive to innovation,
through
chemistry
and
•
Incentivized Sponsorships
Way, a 125 year-old organization
impact; strengthen reputation;
and environmental education.
plastic, strengthening
the
(public interest projects):
whose objective
is
to provide
become closer to stakeholders,
social and environmental
BRL 12.3 million
in
tax
support to local communities. To
strengthening
relationships
The two social causes that guide
contributions of our most
incentives, plus a BRL 1.8
the amounts invested in the United
with Communities; and increase
the Company’s actions are:
important products.
Strategic Objectives
Social Impact
Visibility,
Familiarity
Reputation
Relationship
SOCIAL RESPONSIBILITY STANCE
Drive Human Development
Promote Social and Environmental
Development Through Chemistry and Plastic
Stimulating the growth of the people
who make up our communities
Strengthening the social and environmental
contributions of our main products
Communities of
Interest
Neighboring
Communities
Chemicals and
Plastics Chain
Plastics and Chemicals
as a Solution
Culture
• Braskem Theater Award
• Braskem em Cena Award
Sports, Culture,
Professional And
Human Education
• Braskem Sports
• Braskem Environmental
Stations
• Fábrica de Florestas
Institute
• “Inovar para Construir”
(Innovate To Build)
• “Lagoa Viva”
Consumption,
Post-Consumption
Innovative Solutions,
Great Solutions
• Edukatu
• “ser+ realizador”
• Braskem Labs
• “Menos Perda,
Mais Água”
million consideration of direct
States, Team Members’ volunteer
funding.
hours in the local Communities are
• Odebrecht
Foundation:
added.
BRL 7 million donated to the
Development and Growth
In Mexico, in 2016, there was
Program
Integrated with
a social investment of over BRL
Sustainability (PDCIS) and BRL
1.3 million ($2 million MXN) in
1.5 million donated through
production projects carried out with
the Program called Tributo ao
the Communities surrounding the
Futuro.
industrial operation and focused
on generating jobs and income,
In addition to direct investments,
such as support for Cooperatives
projects in Brazil raised BRL 8.7
raising
tilapias
and making
million in 2016 with the participation
uniforms. External resources were
of several partners, among them
also raised, of approximately BRL
Ambev, City Halls, SEBRAE (Brazilian
1.6 million ($2.4 million MXN).
Support Service for Micro and Small
Enterprises), Elektro, ABIHPEC, and
Cetrel.
The
Odebrecht
Foundation’s
Development and Growth Program
In the United States and Germany,
Integrated with
Sustainability
Braskem invested over BRL 550,000
(PDCIS), supported by Braskem, has
(approximately US$ 125,000
in
the challenge of establishing a social,
the United States and €30,000 in
economic, and environmentally
2016 | Braskem | Annual Report
65
sustainable development model.
In 2016, actions were carried out
involving 390 Communities, directly
PROJECTS
Braskem’s Private Social Investment projects directly benefited over 96,400
A major focus of the program
these actions, a change in scenario
since
2015
has
been
to
is expected, with a significantly
support
the development and
larger volume of waste being
benefiting over 20,000 people, and
people in 2016. Among them, the following stand out:
implementation of strategies for
sent to cooperatives, generating
indirectly, another 285,000. Among
them, the following stand out:
SER+ REALIZADOR
•
Education: jointly with Rural
G4-EN28
managing post-consumer waste in
substantial increases in income.
the municipalities where Braskem
operates. Deliveries to date were
The
program
includes
the
in Porto Alegre, Salvador, and
participation of several partners
Family Houses, that benefited
Present in all states where Braskem
cooperatives supported, 47 received
ABC Paulista, and the latter two
from the public and private sectors
over 320 students from the
operates, this initiative seeks to increase
technical advice and guaranteed the
were given support to prepare
such as Ambev, SEBRAE, and the
Agriculture,
Forestry,
Agribusiness
courses
and
and
the percentage of post-consumer waste
shipment of over 30,000 tons of waste
the Consultation Letter to BNDES
City Halls of Porto Alegre and
recycling in the country, promoting
for recycling. Over 8% of this volume
to obtain funds to develop their
Salvador, which invested over BRL
the Aquaculture Qualification
the social and economic inclusion of
refers to plastics produced by Braskem:
waste management plans. With
5.8 million in the year.
course in the municipalities
waste collectors and the efficiency
PE, PP, and PVC.
Presidente Tancredo Neves,
of the recycling chain. By investing in
Nilo Peçanha, and Igrapiúna in
equipment and infrastructure of the
Due to the economic crisis, only the
the State of Bahia.
sorting units, training and personalized
target for sorted mass was met, with
2016 HIGHLIGHTS
technical consulting, recyclable material
increase in income prevented by the
Todos Somos Porto Alegre
1. Productive inclusion of
•
Environment:
through
collectors have been able to increase
reduced value of recyclable materials.
(We are all Porto Alegre)
those pulling carts or
the
Earth
Conservation
their productivity and income.
There was also an intention to expand
In 2016, the program We are
carts pulled by animals
Organization, which reached
the program, which was not confirmed
All Porto Alegre came to a close.
The waste collectors were
the end of 2016 with 9,000
In 2016, the project benefited over
in the year.
hectares of conserved area,
3,400 waste collectors, and among the
Supported
by
Braskem,
this
mapped
and
registered
municipal waste management
through an active search
program in Porto Alegre (Rio Grande
carried
out
by
the
do Sul, Brazil) was created to meet
municipality, and, adhering
the requirements of Municipal Law
to the program, were able
SER+ REALIZADOR’S RESULTS
2014
2015
2016
2016
Goal
No. 10,531, which prohibited the
to choose to migrate to
circulation of human and animal
the formal labor market or
Waste collectors benefited
2,132
3,538
3,444
4,000
traction vehicles in the city.
continue in the recycling
business. In total, 2,059
Waste collectors trained
710
1,103
858
1,100
Waste collectors with an increase in income
402
960
787
1,300
Sorted mass (t)
8,492
25,703
30,824
30,800
Sorted plastic (t)
1,928
4,863
5,480
Sorted PP, PE, and PVC (t)
1,133
3,128
2,601
-
-
In order to socially include those
people were registered in
who had their carts taken off the
the first phase, of which
road, efforts were made by public
581 were allocated to other
authorities, civil society, and the
occupations with
income,
private sector. The program was
and 225 are in transition to
officially
launched
in December
new activities.
2012 and included three phases:
201,000
trees
planted,
150
families served, more
than 2,300 tons of carbon
neutralized, and 105 springs
conserved/recovered.
• Citizenship (Social): jointly
with the Law and Citizenship
Institute, which reached the
end of 2016 with 305,000
visits to the Communities and
raised about BRL 11.2 million,
with
the Food Acquisition
Program (PAA).
2016 | Braskem | Annual Report 66
2. Restructuring
of
3. Environmental education
Program cooperatives receive support
the
sorting
system
The last stage focused on
for renovations and improvements
The sorting units formalized
mobilizing
the population
in equipment and
infrastructure
adherence to the program the
with
environmental
and specialized technical advisory
immediate needs and demands
education actions.
One
services. The advisors also help the
for investment were identified.
of them was the project
cooperatives obtain partnerships
Over the course of four years,
Caminhos da Reciclagem
for waste collection, which is what
they received the assistance of
(Recycling Paths), in which
occurred in 2016 with Banco do
technical advisors to guide the
about 400 teachers were
Brasil in Rio de Janeiro and with the
sorting process. The leaders
brought to sorting units to
Post Office in São Paulo. In Alagoas,
of the units received training
learn about the waste sorting
cooperatives were selected in a public
aimed toward managing and
process,
impacting
over
notice for selective waste collection
developing the entrepreneur.
28,000 people.
after receiving support from Braskem
With
these
improvements,
Given the success of the Rio
the capacity of the selective
Grande do Sul initiative, Braskem
collection system was
fully
began to encourage the structured
EDUKATU
Edukatu is the first online Brazilian
for the application.
achieved, with production per
management of solid waste in
learning network about conscious
the Ministry of the Environment
for an action planned with the
person of approximately 2.4
other Communities of
interest.
consumption
and
sustainability
and the Ministry of Education.
SESI network was transferred to
tons per month during 2016 -
In 2016, in the ABC Paulista
involving over 28,000
teachers
In 2016,
it
reached 28,000
2017. In addition to the number
an increase of 43% compared
region, the Consultation Letter
and elementary and middle school
participants, about 2,400 being in
of participants, other indicators
to the first quarter of 2015. The
for the Inter-municipal Selective
students in Brazil. Created in 2013
cities in which Braskem operates.
confirm the success of the initiative.
average per capita revenue
Collection Plan was presented to
by Braskem and the Akatu Institute,
Over 10,000 students were directly
In 2016 alone, the external funding
recorded a 42% increase in
the Inter municipal Consortium
the project has already received
involved in intervention projects in
for the project from partners was
the fourth quarter of 2016,
of ABC, composed of the seven
support from partners such as HP,
their school communities, raising
approximately BRL 1.3 million. The
compared to the same period
municipalities in the region, which
Cargill Foundation, Sabesp, Elektro,
awareness with 63,000 people
website surpassed the two million
in the previous year, surpassing
will seek funding from BNDES
Unilever, KPMG, and Mais Unidos,
about conscious consumption. The
mark of total views and has already
the amount of BRL 1,000.
through the document.
and gained institutional support from
targets for 2016 were not met,
motivated over 600 media stories.
EDUKATU’S RESULTS
Accumulated number of participants
Accumulated number of teachers engaged
Accumulated number of students engaged
2014
7,429
272
2,495
2015
11,850
377
3,915
2016
7,646
415
3,353
Accumulated
28,441
1,084
9,911
Goals
39,350
1,200
10,450
2016 | Braskem | Annual Report
67
2016 HIGHLIGHTS
Turma que Recicla and
The game Reciclaki, an app
The best results in the application
In 2016, actions were also
Reciclaki App
available
for computers and
of the “Recycling Class” were
launched about the water crisis,
Edukatu launched Turma que
mobile devices, simulates the
achieved by the team of teacher
conscious energy consumption,
Recicla (Recycling Class) in 2016
work of collectors at a sorting
Luciene Soares, from Pref. José
and hygiene. Edukatu promotes
with the goal of reflecting on the
unit: Various types of waste
Custódio da Silva School, in the
on-site actions
to mobilize
topic of waste. With the help
pass over a conveyor belt, and
municipality of Coite do Nóia
teachers, training them to use the
of online games, videos, and
the player must direct it to the
(AL), which mobilized 230 people,
platform and carry out practical
infographics,
students
create
correct trash bin for each type of
reduced
the
school’s waste
projects for engaging students
actions to reduce the amount of
material. Launched in July 2016,
generation by 20%, and created
and the school community. The
waste generated in school and in
the game has already achieved
stronger ties with the region’s
activity took place in schools in
the Community.
over 9,500 views.
waste collectors.
the city of São Paulo and in nine
municipalities in the same state,
as well as actions in the states
of Bahia, Mato Grosso do Sul,
and Pará, all in Brazil. With an
expressive amount of educational
content produced in recent years,
in 2017 Edukatu intends to focus
on gains in scale through on-site
mobilization, dissemination, and
teacher training for the use of
the platform.
FÁBRICA DE FLORESTAS INSTITUTE
Present in the Brazilian states of
integrated environmental education.
who are trained in seed collection,
to the Nursery Garden Schools.
Bahia, São Paulo, and Rio de Janeiro,
The organization
is maintained
native seedling production and
In 2016, over 1,000 people were
the Fábrica de Florestas Institute
by Braskem, Cetrel - Odebrecht
planting, and maintaining
the
trained in planting techniques and
the construction
contributes
of socially and environmentally
to
Ambiental, and Comitê de Fomento
Industrial of Camaçari (COFIC),
planted areas. The project also
Environmental
develops
the
27,000 received sensitivity training.
The result of the year was 88,000
responsible communities through
in Bahia (Brazil). The work of the
Education Program (PEA), which
seedlings produced and, of these,
the expansion,
recovery, and
Fábrica de Florestas Institute is
offers guided visits to students
46,000 planted and monitored. All
maintenance of green areas, with
developed with the Communities,
from public and private networks
targets for 2016 were exceeded.
FÁBRICA DE FLORESTAS’ RESULTS
2014
2015
2016
Metas
Seedlings produced
Seedlings planted
165.669
116.572
88.407
85.000
83.413
39.206
46.628
41.786
People trained in planting
883
1.064
1.036
740
People received sensitivity training
17.565
16.739
27.506
13.500
2016 | Braskem | Annual Report 2016 HIGHLIGHTS
New Nursery Garden School
Also, the 1st Virada Sustentável
Summer Eco Parque Sauípe
and Virada Sustentável
Salvador took place, a festival
Salvador (Bahia)
that, through art, culture, and
In
of
2016,
another
edition
the Summer Eco Parque
In 2016, this project was marked by
games, offered
reflections on
Sauípe Project was held in the
the inauguration of a new nursery
several aspects of sustainability,
municipality of Mata de São João,
garden school in Bom Jesus da
with cultural activities and training
which
promoted
adventurous
Lapa, Bahia. A new model for the
in parks and public spaces around
activities such as a climbing wall,
program was developed, with the
the city. The Itinerant Nursery
a zipline, and kayak tours. There
creation of the Itinerant Nursery
Garden School attended the event
were over 1,700 visitors during
Garden School, which was displayed
and provided sensitivity training
the two months of the project. Eco
throughout the year in places such
for about 3,300 people, donated
Parque Sauípe protects an area
as malls and squares, also in Bahia,
450 seedlings of species native to
of 66 hectares in the transition
at opportune moments such as
the Atlantic Rainforest, and 500
region between two ecosystems in
Environment Week and Forest Day,
children participated in seedling
the Atlantic Rainforest: the forest
in June and September.
production workshops.
and the restinga.
68
BRASKEM’S REGIONAL
INITIATIVES IN BRAZIL
Braskem Theater Award
(Bahia) and Braskem em Cena
Award (Rio Grande do Sul)
em Cena,” focused on attracting
audiences and presenting street
shows in communities farthest away
from Porto Alegre’s cultural centers.
Salvador hosted the 24th edition of
the Braskem Theater Award, which
Inovar para Construir
received 2,400 people at its awards
(Rio de Janeiro)
ceremony. Other initiatives within
the project include the Braskem
Held in partnership with the
Theater Award Circuit, a theater
FIRJAN System, the Inovar para
festival in the state of Bahia, and
Construir (Innovate to Build)
the Braskem Theater Award Show,
project
is an
initiative
that
which warms up the local scene
seeks to disseminate solutions
and brings the shows closer to the
for plastic for civil construction.
audience, which was about 3,000
These solutions are published
people at the presentations in 2016.
on a virtual platform (www.
The Rio Grande do Sul initiative takes
firjan.com.br/visaotecnologica),
to
dedicated
promoting
place during Porto Alegre em Cena,
innovative
solutions
for all
one of the largest performing arts
sectors of the industry. In 2016,
festivals in Latin America, awarding
a total of 15 people were trained
professionals and plays
in six
in
the professional
initiation
categories. In 2016, a total of 4,500
course in assembly techniques
spectators went to see the plays
for modular construction sites
nominated for the award. There are
in plastic, and 120 people were
also projects Sábado em Cena and
qualified in the improvement in
Braskem “Descentralização Braskem
plastic solutions course.
2016 | Braskem | Annual Report 69
IMPACT OF THE OPERATIONS
ON COMMUNITIES
Green Belts
and environmental projects, and
In all, 30 of Braskem’s 40 units
in 2016, the space received over
have a green belt - a green area
5,000 visitors and trained over 124
around the industrial plants that
producers. The area stands out for
provides another level of protection
the preservation of local wildlife
and reduces exposure to risks.
and flora, and was recognized by
The green belt also protects local
UNESCO as an Advanced Outpost
flora and wildlife species and helps
of the Atlantic Forest Biosphere.
improve the quality of the air in the
environment.
Safety and Communication
with Communities
Preparedness and Response to Local
entities to the plants, offers a
courses offered for the training
With 68 hectares of area, the
Braskem
has
communication
Emergencies (APELL), implemented
Toxicology and Medical Conduct
of waterways professionals, for
Braskem Environmental Station,
channels open to all Communities
in Brazil in the units located in
course for health professionals,
example, included 45 people from
which
surrounds
the Triunfo
where it operates. In some units,
the states of Alagoas and Rio de
simulation, and implements actions
the local community, preparing
Petrochemical Complex (Rio Grande
in addition to the toll-free number
Janeiro over twenty years ago. The
against the Aedes aegypti mosquito.
them for the labor market.
do Sul), has been continuously
(0800) and
the Ombudsman’s
project conducts and coordinates
Braskem plays a leading role in
monitoring the wildlife and flora
carried out by the Zoobotânica
office available on the Company’s
the Community may
website,
emergency simulation and keeps
the Community informed about the
the community, by engaging its
neighbors and providing essential
In addition to practical actions
that ease and prevent risks to the
Foundation since 1989. Currently,
dialogue with
the Company
risks and measures that control and
insight into the potential impacts of
health and safety of Communities,
the space welcomes students
through periodic meetings, factory
minimize possible impacts arising
the products it manufactures and
environmental education activities
for guided tours that promote
visitation programs, training, and
from industrial operations. The local
ways to minimize them.
are developed
so
that
the
environmental education through
interface with the government -
coordinators of the program also
games and workshops in the middle
initiatives usually promoted by the
plan and execute training activities
Maré Boa
population understands the risks
and impacts of the operation of
of the native forest. In 2016, there
Community Consultative Councils
and guarantee the reliability of
Maré Boa is a communication and
the Private Use Terminal in the
were over 2,800 visitors.
(CCC’s) of each location. In the
equipment and tools such as alarm
social responsibility program that
region. One of the actions carried
ABC region, in São Paulo (Brazil),
systems, substance detectors, and
seeks to positively impact the
out in July 2016 was sponsoring
Another Braskem green belt is a
the CCC returned in December
respiratory protection equipment
Communities within the area of
the Civic-Social Action (ACISO)
preservation area located in the
2016, with the COFIP ABC action.
that is used by public agencies.
influence of the Port of Aratu in
carried out by the Brazilian Navy,
district of Pontal da Barra, next
to Braskem’s Chlorine-Soda unit
APELL
In 2016, there were three groups
actions
toward
strengthening
to five thousand residents of these
Bahia (Brazil). The program includes
which provided support services
in Maceió (Alagoas). Created in
One of the highlights of Braskem’s
of the program Formando Laços
and sustaining fishing activity
communities, among them medical
1987, it is now a space for studies,
relationship with its surrounding
(Building Bonds). The
initiative
and generating jobs and income,
care,
issuing documents, and
visits, and development of social
community
is
the Community
brings communities and
local
such as training courses. The
dental procedures.
2016 | Braskem | Annual Report 70
Suppliers
G4-12
Global Compact - Principle 10
PERCENTAGE OF PURCHASES BY
SUPPLIERS BY COUNTRY
G4-EC9
With over 8,000 Suppliers spread
processes, cost analysis, quality
throughout its operations worldwide,
assessment of products
and
Braskem seeks to closely monitor
services, compliance with
the
the behavior of its partners, seeking
Supplier Code of Conduct, legal
attitudes in line with the Company’s
regulations, and Health, Safety, and
ethical, social, and safety principles.
Environment (HSE) requirements.
In the period covered by this report, Braskem in Brazil reduced expenses on contracting foreign Suppliers, falling
from 36% in 2015 to 24% in 2016. In its first year of operation, Mexico allocated 16% of its spending budget
to hiring foreign Suppliers. This percentage was maintained in the United States and grew in Germany from 4%
(2015) to 6% (2016).
Therefore, only companies meeting
PERCENTAGE OF PURCHASES BY SUPPLIERS BY COUNTRY
tax and
regulatory obligations,
It
is worth mentioning
that
with technical and administrative
qualification,
and
a
healthy
all
to
Suppliers
have
access
the Braskem Ethics Line
economic situation, are considered
Channel and are encouraged
for hiring.
to contribute information that
helps to strengthen transparency
Brazil
Based on the magnitude of its
and trust. All complaints are
operations, Braskem has structured,
investigated and have reparation
decentralized Supplier management
in areas responsible for purchasing
measures to ensure the correct
outcome of any problems.
Germany
TO LEARN MORE ABOUT THE ETHICS
LINE CHANNEL, VISIT
braskem.com.br > Ethics Line
The Code of Conduct for Suppliers is available
for download at braskem.com.br > Suppliers
United States
Mexico
Suppliers
2015
2016
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
64%
36%
96%
4%
99%
1%
-
-
76%
24%
94%
6%
99%
1%
84%
16%
2016 | Braskem | Annual Report MAIN SUPPLIERS
CATEGORIES
Fossil fuel raw materials:
Braskem works with a team
REVISED CODE OF CONDUCT
FOR ETHANOL SUPPLIERS
Following a process of continuous
codes,
other
standards, and
71
periodically analyzed to ensure
strategic
to
maintaining
dedicated
to
these partners
improvement, in 2016 Braskem
protocols applied to the ethanol
that it keeps up with market
Braskem’s operations, fossil fuel
to ensure compliance with
promoted a review of its Code
industry. The work was carried
developments, incorporating the
raw materials are among the
all processes and alignment
of Conduct for Ethanol Suppliers,
out by Proforest, an international
lessons learned from audits and
largest portion of the Company’s
with
the Company’s safety
ensuring its alignment with the
organization that works with the
changes in legislation, treaties,
expenses with Suppliers. Among
standards. When signing a
code applicable to all of Company’s
management
and
sustainable
and agreements related to the
these products are naphtha,
supply contract with Braskem,
Suppliers, according to the aspects
purchase of natural resources.
sector. The new structure has an
condensate, ethane, propane,
all of these partners sign the
monitored by
the Company:
area for mandatory requirements
and HLR in Brazil, ethylene and
Code of Conduct for Ethanol
slash and burn, biodiversity,
In addition, Braskem reinforced
that must be followed by the
propylene in the United States
Suppliers, developed in 2010
best
environmental practices,
its
relationship model
and
Suppliers and also a section about
and Germany, and ethane in
by Braskem with the support
and human and
labor rights.
purchase
procedures
with
continuous
improvement
that
Mexico. To ensure cost control
of Proforest. In 2016,
this
This revision also sought greater
Suppliers.
The
Braskem
will allow Braskem to influence
and supply continuity, Braskem
code went through a review
synergy with
the Company’s
Responsible
Management
its Suppliers through an agreed
has contracts with specific
that reinforced the relationship
Compliance Program and
the
Structure of Ethanol will be
upon action plan.
suppliers in all countries where
model and
the procedures
its operations are located.
regarding
the purchase of
Ethanol: Braskem’s product
Ethanol. In 2016, a total of
99.1% of ethanol came from
in
the highest social and
plants that signed the Code of
environmental
risk category,
Conduct for Ethanol Suppliers,
ethanol has a more rigorous
a number above the established
management
process
than
goal of 90%. The remainder
the other inputs used by the
was purchased in commodities
Company - and the same is
exchanges in order to meet
true for its Suppliers. Thus,
specific demands.
Responsible Ethanol
Management Structure
Braskem
Code of Conduct for
Braskem Suppliers
Responsible Ethanol Management
Structure Braskem
In 2016, a total of 99.1% of ethanol came
from plants that signed the Code of Conduct
for Ethanol Suppliers, a number above the
established goal of 90%.
Compliance
Excellence
Audit Program + Robust Management
2016 | Braskem | Annual Report 2016 | Braskem | Relatório Anual
72
PROCUREMENT BRAZIL
In one more year of economic
Health, Safety, and Environment
challenges and high inflation
(HSE) assessments, as well
in
the
Brazilian market,
as compliance with regulatory
the Procurement area was
and
legal
obligations.
responsible
for ensuring
the
Company’s competitiveness and
In Brazil, the area is responsible
the availability of essential goods
for
contracting
Industrial
and services for the business,
Services
(for
operations
by optimizing existing contracts
maintenance),
Corporate
and searching for new partners.
Services, purchase of
inputs
It is important to point out that
and packaging
required
for
Braskem Suppliers are selected
production, and purchase of
by the Procurement team in
equipment and materials
for
conjunction with the user areas,
maintenance and operation.
and undergo quality analysis,
In addition, it also manages
with pre-established parameters
Braskem’s indirect materials and
in each situation, standardized
inputs warehouses in Brazil.
PERCENTAGE OF SUPPLIERS
BY TYPE OF SERVICE
G4-EC9
2016
37.19%
56.55%
7.26%
Machinery,
equipment,
and facilities
Technical and
supplementary
services
Other (inputs and
packaging)
SUPPLIERS
RADAR
SUPPLIER PERFORMANCE
INDEX (IDF)
A tool that was strengthened in
The Supplier evaluation process also underwent minor
2016 was the Suppliers Radar,
reformulations and, in 2016, the analyses began to be
which
identifies
in advance
carried out by the user areas and respective buyers.
companies with greater exposure
This evaluation generates the Supplier Performance
to labor and economic risks,
Index (IDF) and is applied to all partners considered
enabling the implementation of
critical in Quality, QM (deviation history), Punctuality,
a work plan to minimize possible
HSE, Financial, and Compliance dimensions. Deviations
impacts on these aspects for
identified through this study are handled by an action
Braskem.
plan involving the user, Supplier, and Procurement areas.
73
SUSTAINABLE PROCUREMENT
SUSTAINABLE PURCHASES
Based on a strategy connected to
The first action of this strategy
is the relevance to the business,
Braskem’s Sustainability macro
was mapping the Supplier chain,
through
internal and other
objectives, the Procurement area
in which the supply categories
indicators drawn from the ISO
works to make the purchasing
were classified by a specific
9000, and the second aspect
process
increasingly more
criticality matrix. This matrix
evaluates the potential social
sustainable and
responsible.
includes two aspects: The first
and environmental impact.
Sustainability Matrix Classification
Percentage of suppliers in the Procurement area
identified in the categories (Base 2016)
s
s
e
n
i
s
u
b
e
h
t
r
o
f
y
r
o
g
e
t
a
c
e
h
t
f
o
e
c
n
a
v
e
l
e
R
Relevant
High
Low
Medium
s
s
e
n
i
s
u
b
e
h
t
r
o
f
y
r
o
g
e
t
a
c
e
h
t
f
o
e
c
n
a
v
e
l
e
R
20.3%
54.4%
16.3%
9.0%
Social and environmental impact
of the category
Social and environmental impact
of the category
Throughout the year, the actions
CEBDS (Brazilian Business Council
support the Suppliers selection
originating from this mapping were
for Sustainable Development). The
process.
In
2016,
a
pilot
planned. Among them is structuring
questionnaires will be included
project was carried out in one
self-assessment
questionnaires
in the new bidding processes to
of
the purchasing categories,
based
on
the
Sustainable
show
the overall performance
showing its effectiveness in the
Procurement Manual
tool of
in Sustainability aspects, and to
evaluation process.
DEVELOPING SUPPLIERS WITH SEBRAE
Another action
initiated and
de Janeiro. Several companies
aligned
to
the Sustainable
were invited and participated in
Development planning of the
a business diagnosis conducted
area was the implementation of a
by SEBRAE-RJ, and in structured
Supplier development project in
partnership with SEBRAE, in Rio
training
opportunities mapped.
according
to
the
CDP SUPPLY CHAIN
In 2016, the area continued to support the CDP
Supply Chain program, which requests that
Suppliers submit a report on their greenhouse gas
emissions, associated risks and opportunities,
and their strategy to ensure improvements
in the management of the aspect. This year’s
focus was to identify the most significant risks
and opportunities reported in the CDP program
and the evaluation of possible action plans.
In addition, for Suppliers located in regions of
potential water stress, the water management
questionnaire was requested.
2016 | Braskem | Annual Report
74
LOGISTICS
Braskem
Logistics
(Basic
Team Members of the area
In 2016, Braskem continued to
providers to keep them up-to-
is also part of the Company’s
SAFETY PROCEDURES
Petrochemicals and Polyolefins)
work with their own evaluation
reinforce Processes Safety in
date on best practices in Health,
strategy, which hires most
works with Health, Safety, and
methods, based on Braskem’s
Logistics through a structured
Safety, and Environment, and,
of
its non-hazardous
road
Environment (HSE) professionals
performance analysis system
program
of
risk
studies
from this, adopts assessment
freight (resins) with electronic
to ensure
compliance with
and
Abiquim’s
Safety,
involving seven new products
tools and safety controls. The
trackers.
For
hazardous
all social and environmental
Health,
Environment,
and
with operations classified as
Company also conducts annual
products (chlorine soda) and
requirements critical
to
the
Quality Assessment System
average risk, based on the
audits at the headquarters of
petrochemicals, transportation
Company’s operations.
(SASSMAQ).
volume
transported and
its
the transportation companies,
companies are
required
to
degree of hazard.
with evaluations and planning
have 100% of
the
freight
of
corrective
actions
for
tracked,
freight must be
For
the
logistics operations
Supplier cases that resulted
handled exclusively by
the
involved
in
these
seven
below the expected
in the
supplier’s own fleet, and must
products, 144
routes, 17
Supplier Performance
Index
carry out the Priority Product
transportation companies, six
(IDF). To this end, tools such
Logistics Risk Study
(e.g.
loading and unloading areas,
as the Service Level Agreement
Benzene and Pygas). Finally,
the configurations of
road
(SLA)
and
the
Accident/
for propylene, in addition to
equipment, and ten ships were
Incident Prevention (IP) Index
tracking
the entire
freight,
evaluated. Specific inspections
are used. All this caution is
telemetry is required on board
based
on
international
reverted in detailed monitoring
the vehicles.
standards were also carried
of the events and indicators
out at six maritime terminals
of
freight
transportation:
The Company also has a
contracted by Braskem with
Transport Accident Frequency
contract
with
Suatrans,
the purpose of identifying risks
Rate (by number of trips and
the leader in chemical and
and defining preventive control
per kilometer driven) and
environmental
emergency
barriers.
Accident Severity Rate.
road response in Brazil, and
conducts audits at the service
Braskem also holds periodic
Maintaining partnerships with
bases and simulations on the
meetings with
its
service
Brazil’s leading risk managers
main transportation routes.
2016 | Braskem | Annual Report 75
EMISSION CONTROL
On another
front, Braskem
Logistics
adopts
different
to
to
actions
focused
on
identify
opportunities
In
addition
to
initiating
reduce
emissions.
emissions monitoring, the area
has sought creative ways to
sustainability. In this regard,
As a result, also
in 2016,
reduce this indicator, such as
the
Polyolefins
Logistics
Braskem’s Polyolefins Logistics
the use of closed circuits to
participated in events in four
began measuring its emissions
transport resins, sharing of
Brazilian states (São Paulo,
from all modes for sales to
dedicated vehicles with other
Rio de Janeiro, Bahia, and
Clients in Brazil, reaching a
transportation companies, and
Rio Grande do Sul) and in
result of 0.027 kgCO2e/t.km,
fostering more
sustainable
Mexico,
to
foster partner
with emissions of 67.9 million
modes of transport.
engagement
in
voluntary
kgCO2e (3.2 million tons of
monitoring
of
greenhouse
resins and 108.8 million km
gas emissions (GHG), seeking
traveled).
ROAD SAFETY PROGRAMS
AND PARTNERSHIPS
The areas responsible for managing Braskem’s logistics
activities are in line with programs relevant to promoting
road safety, among which the following stand out:
• Program Olho Vivo na Estrada: established
by Abiquim in partnership with Abiclor, aims
to prevent unsafe behavior when transporting
hazardous products through driver awareness.
The “Olho Vivo na Estrada” is part of a risk
management system, and its goal is to reduce the
number of road accidents with chemicals to zero.
• Program Transportadora da Vida: a program
of the Trade Union of Freight and Logistics
Transport
Companies
(SETCERGS), which
certifies cargo transport companies that carry
out actions with a greater emphasis on safety.
• Program Na mão certa: developed by the
NGO Childhood, is dedicated to eliminating the
sexual exploitation of children and adolescents
on Brazilian highways. In 2016, Braskem was
recognized by the NGO
for having trained
multipliers and conducted sensitivity training
with over 300 truck drivers, in addition to the
partnership with the risk manager for support and
communication of the cause to the majority of
truck drivers who ship Braskem products.
2016 | Braskem | Annual Report 76
Clients
G4-8
With Clients in diverse segments of
throughout the year, such as
production of fan blades and
This
initiative
reinforces
and business events such as
the industry, Braskem is constantly
new formulations of grades and
body. The input provided reduced
Braskem’s commitment to the
Agrishow 2016, one of the largest
seeking to maintain and expand
products,
technical
follow-ups,
emission of carbon dioxide by 4.2
plastic chain in Brazil, innovation,
agricultural technology fairs in
a collaborative relationship with
audits, and training. The tool used
tons per million pieces produced,
and sustainability, providing an
the world, held in Ribeirão Preto,
its partners. To this end, the
by Braskem as the basis for project
as well as a 30% reduction in
increasingly better life for people.
in the state São Paulo.
Company integrates investments
management is CRM (Customer
the annual energy consumption
Read more about the initiative.
in
innovation
for developing
Relationship Management).
required to produce fans, an
solutions
in partnerships with
8% drop in production time of
PICPlast
During the year there was also
an advance in the agenda to train
Clients, creating new solutions
Maxio® Seal
the part, and a 9% increase in
The Plastic Chain
Incentive
businesses and businessmen
that can contribute to improving
Created to recommend the eco-
industrial productivity.
Program (PICPlast) is a Braskem
with the launch of a Production
the life of society and ensuring the
efficient resins of the Company’s
initiative
in partnership with
Chain Program for eight Brazilian
preservation of the environment.
portfolio, the Maxio® Seal serves
Wecycle
the Brazilian Association of the
states, with a
total of 71
one of Braskem’s main growth
The Wecycle platform was created
Plastic
Industry
(ABIPLAST).
companies. Held in partnership
Visio Program
pillars: Innovation. Through it,
with the objective of developing
The objective is to encourage
with SEBRAE, the project is part
Visio is a platform that integrates
resins are identified that bring
business
and
initiatives
for
the development of the plastic
of an agenda to expand the
sharing
knowledge
and
environmental gains, since they
appreciation of plastic waste
production chain through three
capacity of plastic processing
experiences between Braskem and
provide to Clients less energy
through partnerships, bringing
areas: promoting the export of
companies.
Clients. The goal is to strengthen
consumption, greater productivity
reliability and quality to developing
processed polyethylene (PE) and
relationships to create common
in the production process, and a
products, solutions, and processes
polypropylene (PP), encouraging
In promoting the advantages of
values capable of
increasing
lighter end product.
that involve all links on the plastic
competitiveness and innovation
plastic, the sector fund set up for
competitiveness and business
recycling chain.
in the sector, and promoting the
financing the program received
productivity.
In this way, the eco-efficiency of
advantages of plastic.
31 new participants in 2016,
the Maxio® line allows progressive
In this way, Wecycle can offer
which totaled 486 companies
In 2016, a total of 909 Clients were
reduction of production costs
companies
committed
to
In 2016, the amount invested in
registered
since December
served by Braskem’s Polyolefins
and
environmental
impacts,
sustainable development a recycled
sales fostered for exports totaled
2014. The total volume of funds
unit
in Brazil
(Polyethylene,
contributing
to
improving
plastic raw material with quality,
BRL 139 million, which was 3%
collected a total of BRL 6.9
Polypropylene, and Renewable
people’s lives and preserving the
traceability, process
regularity,
higher than the previous year.
million from December 2014
Chemicals). According to Visio
environment. Among the highlights
and socially and environmentally
Throughout the year, PICPlast
to January 2017, of which over
records, 89 Clients were involved
of 2016 is the experiment applying
responsible actions throughout the
promoted the participation of
BRL 3 million were invested
in 126
initiatives
implemented
Maxio® H 202HC resin to the
recycling cycle.
sectorial companies
in
fairs
over the period.
2016 | Braskem | Annual Report 77
2014
125.7
60.0
65.7
1.6
1.6
-
-
2015
173.9
71.6
102.3
-
-
-
-
2016
87.5
78.8
8.7
1.6
1.6
-
-
Government
G4-EC4
Open and transparent dialogue
competitiveness
through PIS-
with
all
stakeholders
and
Cofins exemption for the purchase
proposing solutions that develop
of raw material for first and second
not only the Company, but also
generation petrochemicals.
Thousand BRL
Total tax incentives /credit1
- PRODESIN - ICMS
- REINTEGRA
Grants for investments, research and development,
and other relevant types of concessions2
other sectors of industry and the
FINEP
country’s economy, is something
Reintegra, a government program
that is a part of Braskem.
that aims to return a percentage of
the taxes on the production chain
Always motivated to offer solutions
to certain segments of exporters,
to the sector’s challenges,
in
is still working at a lower rate than
2016, the Company continued
expected by the sector since it
several actions to defend the
underwent a revaluation in 2015.
competitiveness of its production
chain, as well as the search for
Created in 2011 as a temporary
solutions to challenges in the
mechanism and established as
areas of logistics, infrastructure,
permanent in 2014, Reintegra
energy, and topics related to
provides mobile rates that may
FINEP Award
ECAs (financial aid from export credit agencies)3
1. Tax incentives/credits: Restitution of federal taxes by the Reintegra program and tax incentives of ICMS, granted by the Government of
Alagoas, through the Integrated Development Program of the State of Alagoas - Prodesin.
2. Grants for investments, research, and development: FINEP awards and financing for innovation projects.
3. Financial assistance from ECAs (credit and exporting agencies): Risk insurance operation with NipponExport and Investment Insurance
(NEXI – Japanese agency) for investment in maintenance and in the butadiene project.
OPEN DIALOGUE
Among several other associations that discuss new paths
• Brazilian Business Council for Sustainable Devel-
for the Brazil’s macroeconomic policies, Braskem actively
opment (CEBDS)
industrial policy still affecting
vary between 0.1% and 5%
participates in discussions forums in petrochemical entities,
Brazil’s growth.
on the income of companies
industry representatives, and other sectors of the economy:
• Federation of Industries of São Paulo (FIESP): pri-
One of the topics that remained
from exports. In 2015,
the
on the discussion agenda was
1% rate was set to 0.1%, a
preserving the Special Regime
percentage that is valid until
of
the
Chemical
Industry
2016. Reintegra is expected to
(Reiq). Approved by the Federal
reach 2% in 2017, returning
Government of Brazil in 2013, this
to 3% in 2018, according to
demand remains one of the pillars
the decree established by the
for the recovery of the sector’s
Federal government.
vate law entity focused on guaranteeing Brazilian compet-
• Brazilian
Chemical
Industry
Association
itiveness, with demands for lower production costs and
(ABIQUIM): a private law entity structured to carry out the
containing deindustrialization, guaranteeing the country’s
statistical monitoring of the sector, promotes specific stud-
economic and social development.
ies on the activities and products of the chemical industry,
follows changes in legislation and advises associated com-
• Federation of Industries of the State of Bahia
panies on economic, technical and foreign trade issues.
(FIEB): private law entity focused on the growth, mod-
ernization, and improvement of the competitiveness of
• Brazilian Association of the Plastic Industry (Abi-
the industry in the State of Bahia, and sustainable devel-
plast): focuses on the processing industry.
opment of the State
• National Industry Confederation (CNI): the highest
• Applied Tax Studies Group (GETAP): a nonprofit enti-
body of the industrial trade union system, focused on de-
ty dedicated to assisting the improvement of Brazilian tax
fending and representing the industry by promoting an
legislation, through suggestions regarding its simplifica-
environment conducive to business, competitiveness, and
tion and rationalization.
sustainable development in Brazil.
2016 | Braskem | Annual Report 78
07. Health, Safety, and the Environment
Global Compact - Principles 1, 2, 6, 7, 8 and 9
RECORD OF ONE
ACCIDENT WITH
DEATH.
SEMPRE
THREE FACILITIES
REACH THE MAXIMUM
IMPLEMENTATION
STAGE.
BRL 103.9 million
INVESTMENTS OF BRL 103.9 MILLION
IN HEALTH, SAFETY, AND ENVIRONMENT
PROJECTS.
Environment
BEST HISTORICAL
RESULTS IN THE
RATES OF EFFLUENT
GENERATION
AND ENERGY
CONSUMPTION.
Braskem is the
first Brazilian
industry to be
part of CDP’s
“A List” -
global ranking
for strategies
and results
associated
with climate
change.
15 plants
PROCESS SAFETY (RISK RATING, AS
PER INSURER): 15 PLANTS WITH THE
INTERNATIONAL STANDARD ABOVE STANDARD.
FIRST INVENTORY
OF GHG EMISSIONS
FROM OPERATIONS
IN MEXICO.
FOR THE 6º
CONSECUTIVE YEAR
BRASKEM HAS QUALIFIED IN THE GOLD
CATEGORY IN THE BRAZILIAN GHG PROTOCOL
PROGRAM.
2016 | Braskem | Annual Report 79
For Braskem, maintaining health
dedicated to the rigor of a set of
Health, Safety, and Environment
and safety, and preserving the
internal controls (extended along
System), which
takes
into
environment are key elements
its production chain) to ensure
account the unit’s profile, as
for the growth of the business
water and energy efficiency,
well as
its
respective
risks,
and the search for innovative
constant reduction of generated
when setting annual progression
opportunities
in
the market.
waste, control and mitigation of
goals. To ensure that all plants
Always thinking about the future
its carbon emissions, and safety
are standardized, annual audits
- not only of the Company, but of
assurance in all its units.
work with the following points:
all its stakeholders - the Company
Strategic Elements, SEMPRE
works
on
its
sustainability
In 2016, the Company continued
Guidelines and Procedures in
strategy objectively,
focusing
on
its path of evolution
in
alignment with Quality and
on
developing
increasingly
Health, Safety, and Environment
Productivity, and Verification of
sustainable processes. In this
(HSE) management,
aligned
the Barriers for process safety
way, the Company is constantly
with
SEMPRE
(Integrated
risk scenarios.
Diagnosis
Stage 1 - Construction of HSE bases
Stage 2 - Prevention of personal losses
Stage 3 - Prevention of big losses
Stage 4 - Performance assured in HSE
Stage 5 - High performance in HSE
SEMPRE PATH OF EVOLUTION
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
n
o
l
i
t
u
o
v
e
f
o
e
g
a
t
s
r
i
e
h
t
o
t
e
u
d
s
t
n
a
l
p
f
o
e
g
a
t
n
e
c
r
e
P
2013
2014
2015
2016
2017
2018
2019
(cid:1)(cid:2)(cid:3)(cid:4)(cid:5)(cid:6)(cid:3)(cid:7)(cid:8)(cid:9)(cid:2)(cid:10)(cid:11)(cid:12)(cid:13)(cid:2)
In 2016, 100% of SEMPRE audits were carried out,
certifying 90% of the units. In addition, 50% showed
an improvement over 2015: today 6.7% of units are
in stage 5, while 4% are in stage 4, and 46.7% are in
stage 3, and 6.7% are in stages 1 and 2. It should be
noted that the audits for Braskem’s terminals in Brazil
were carried out separately from the industrial units
and focused on logistics operations.
Technology labs are included in the scope, and the
Pittsburgh Innovation and Technology Center, in the
United States, is certified in stage 5, and the Campinas
Center for Research in Renewable Chemicals, in Brazil,
is certified in Stage 1 of SEMPRE.
2016 | Braskem | Annual Report
80
Investments and Gains in
Environmental Protection
G4-EN31
Braskem applies resources to increasing the levels of environmental protection related to risks of process or product accidents. In 2016, the
Company improved significantly in provisions for environmental damages (Environmental Liabilities), which increased from BRL 65.8 million in
2015 to BRL 182.6 million. This increase is not associated with a greater number of environmental liabilities, and is a result of improved man-
agement that allowed the Company to expand the forecast of expenditures from two to five years. Other expenses were divided as follows23:
INVESTMENTS AND GAINS IN ENVIRONMENTAL PROTECTION
Type of spending (BRL million)
Work safety
Process safety
Investments in HSE
Health
Environment
Total
Liquid effluents treatment
Waste management
Total
Spending on treating
effluents and waste
Emissions management
Environmental licenses
Depreciation
Provision for environmental damages recovery
(environmental liabilities)
Other environmental management costs
*In 2014, spending on effluents and waste treatment were not evaluated separately
2014
117.9
4.9
15.1
27.0
164.9
105,1*
59.1
0.5
46.0
50.4
48.8
2015
2016
65.6
13.0
4.7
31.1
114.4
50.5
42.7
93.2
8.1
1.1
46.0
65.8
66.6
51.4
25.9
2.8
23.8
103.9
51.1
55.3
106.3
7.9
1.0
46.0
182.6
59.7
23 The depreciation amount is an estimate based on previous years. The amount reported in provision for environmental damage recovery refers to what has been planned for use over
the forecast of needs for the coming years. Other environmental management costs include groundwater management, environmental noise monitoring programs, quality of surface
water resources (lakes, rivers, sea) and pipelines, environmental risk management, and energy and water management.
2016 | Braskem | Annual Report 81
Health, Safety, and Environment management also include monitoring
savings and avoided costs through improvement projects developed
by the area. In 2016, this work resulted in gains of approximately BRL
252.4 million in operations in Brazil, the United States, Germany, and
now Mexico.
COSTS AVOIDED - HEALTH, SAFETY
AND ENVIRONMENTAL MANAGEMENT
DIMENSION (IN BRL MILLIONS)
2014
2015
2016
Occupational
Health and Safety
In March
2016, Braskem
frequency rate of accidents
reported the death of a Team
with and without
lost time
Member at the PE 8 plant in
(CAF + SAF), considering Team
Cubatão, Brazil. The accident
Members and Third Parties
occurred
while
finishing
per million hours worked, has
unloading
propylene when
shown a downward trend in
the operator performing the
the last four years, with its
maneuver was hit by
the
lowest value in 2015. In 2016,
sudden movement of the hose
this rate increased by 17.6%
(hook) caused by remaining
compared to 2015 but is still
pressure
in
the equipment.
below the historical rate.
Safety
Work safety
Process safety
0.6
7.9
0.6
-3.4
Despite all medical efforts, the
-27.0
17.1
due to the aggravation of his
Rate,
considering
Team
Team Member died days later
The Lost Time Injury Frequency
Health
Occupational health
37.1
19.0
23.3
Waste generation
53.7
13.5
Water consumption
Environment
Effluents generation
1.9
7.2
6.2
6.7
4.6
2.1
Energy consumption
307.6
116.8
134.9
GHG emissions
4.5
Common impact
14.0
Management
4.1
0.0
0.0
0.5
67.0
0.0
0.1
HSE
TOTAL
-
431.4
136.8
252.4
state of health.
Members and Partners per
million hours worked, was 0.24.
For over five years, Braskem
The variation of the Severity
had not recorded any accidents
Rate of Accidents with Lost
of this nature in its operations,
Time went from 43.32 in 2015
and will now further reinforce
to 164.17 in 2016, due to the
its focus on discipline in its
fatality that occurred at the PE8
operational
activities.
The
described above.
G4-LA6
In 2016, the frequency rate of accidents with and
without lost time increased by 17.6% compared
to 2015, but is still below the historical rate.
2016 | Braskem | Annual Report 2012 2013 2014 2015
2016
Process Safety
82
INJURY
FREQUENCY
RATE X 1MM/HHT
Accident Frequency
Rate (SAF+CAF)
Accident Frequency Rate
(CAF)
1,04
1,04
0,97
0,68
0,80
0,35
0,39
0,14
0,26
0,24
SEVERITY RATE
30,79
64,70 12,53
43,32
164,17
NUMBER OF
To
reinforce
everyone’s
strengthened by the leaders,
well as audits of barries and
awareness of the importance of
who work rigorously on risk
technical actions
to
reduce
safety procedures, and ensure
management
in
processes,
risk in scenarios of greater
that processes are effective,
operations, and logistics. To
significance.
The
Process
Braskem conducts preliminary
this end, several management
Safety pyramid
is used
to
assessments in order to manage
methods are used, such as
classify
unwanted
events
and mitigate potential risks.
change management, accident
according to their magnitude
ACCIDENTS WITH
0
0
0
0
1
The process is continuously
and incident investigations, as
of damage.
FATALITIES
G4-LA6
NEW CASES OR AGGRAVATED
OCCUPATIONAL DISEASE
TIER
In 2016, after three years without any cases, Braskem identified a
case of work-related disease (depression) in the São Paulo (Brazil)
office. The investigation was completed in July and included the
opinion of external and independent specialists on the case and
its history. During the evolution of the analysis, the Team Member
received medical assistance, including follow-up with external
G4-SO2
psychologists and psychiatrists.
1
2
3
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.
2012
2013
2014
2015
2016
5
0
0
0
1
One of the highlights of the year
process
safety.
It
is also
In 2016, Braskem
recorded
was
intensifying the analysis
worth highlighting
the
focus
nine Tier 1 events, down from
of the smaller process safety
on
strengthening
human
11 events in the previous year.
occurrences, usually considered
trustworthiness
at Braskem,
The accident rate was 0.22,
“near-misses,”
allowing
for
the continuity of the barriers
consistent with the best process
increased preventive
learning
audits, and the implementation
safety benchmarks of companies
in the units, as well as further
of
technical
risk mitigation
in the US chemical industry (0.41
revision
of
the
corporate
actions for the most significant
was the average benchmark for
standards
associated
with
scenarios.
US companies in 2015).
2016 | Braskem | Annual Report 83
TIER 1
TIER 2
TIER 3
NUMBER OF ACCIDENTS (TIER 1)
29
22
11
9
4
2012
2013
2014
2015
2016
ACCIDENTS RATE (TIER 1)
nº of accidents x MM/HHT
0.51
0.70
0.32
0.22
0.09
2012
2013
2014
2015
2016
SEVERITY RATE (TIER 1)
3.24
3.41
2.62
0.25
0.68
For Tier 224 events, the reduction trend of
previous years was confirmed. In 2016,
Regarding the smaller cases, 3,133 Tier 3 events, at the base of the pyramid,
were recorded. This result ensures a preventive focus on the smaller events
Braskem recorded 37 events, three fewer
and a stronger process safety culture, and demonstrates the commitment of
than the previous year. The accident rate
the Team Members to reducing the number of small events to minimize the
was 0.90.
occurrence of more severe events.
NUMBER OF ACCIDENTS (TIER 2)
91
49
40
37
2013
2014
2015
2016
ACCIDENTS RATE (TIER 2)
nº of accidents X 1MM/HHT
2.20
1.13
1.17
0.90
2013
2014
2015
2016
RISK RATING
Braskem has been continuously advancing in efforts to improve the
Risk Rating of its plants by implementing several improvements in its
facilities and searching for increasingly safe production processes. In
2016, the Company advanced in having almost all units audited by
insurers and reinsurers, and now owns 13 plants with the international
standard “Standard” and 15 plants “Above Standard.” It should be
noted that Braskem does not have a target for this indicator.
S
T
N
A
L
P
F
O
R
E
B
M
U
N
L
A
T
O
T
18
10
16
12
13
15
2014
2015
2016
Standard
Above Standard
2012
2013
2014
2015
2016
24 In 2012, Braskem did not evaluate the Tier2
indicator. This indicator only came to be measured in
2013, so it does not yet have a five year history.
2016 | Braskem | Annual Report
84
Product Safety
G4-PR1, G4-PR3
In 2016, Braskem updated
characteristics of its products,
and made available all of
Braskem
constantly
carries
its
Emergency
accordance with
Sheets25
the
in
out internal audits to ensure
new
the safety and
reliability of
Brazilian legislation, improving
its processes. In 2016, audits
them with
the
Chemical
involved
units
producing
Substances Information (FISPQ)
hazardous and non-hazardous
of the products produced and
products.
marketed by
the Company.
In
addition,
in partnership
About
Process
Security
with
ABIQUIM
(Brazilian
(SEPRO), in 2016 this aspect
Chemical Industry Association),
continued to be strengthened
the Company acts with
the
in
all of
the Company’s
International Council of Chemical
leadership
committees.
In
Associations (ICCA) to promote
addition to rigorous analysis
the recognition and disclosure
of the risks and benefits, to
and management of process
and
risks
industrial
for
people and the environment, of
logistics
operations,
there
the use of chemicals. All FISPQs
was a
focus on
recording
of the products manufactured
and
analyzing
near-misses,
and marketed may be found on
seeking preventive
learning,
Braskem’s website.
continuous
improvement of
management of barriers, and
Aware of the degree of hazard,
the implementation of technical
toxicity, corrosivity, flammability,
actions to mitigate risks for the
and
environmental
impact
most significant scenarios.
25 In the United States, the Company uses the Material Safety Data Sheet (MSDS) and
in Europe, the Safety Data Sheet (SDS), required by the Occupational Safety and Health
Administration (OSHA) and the EU relevant directive (REACH).
2016 | Braskem | Annual Report 85
Water Efficiency
G4-EN8, G4-EN10
The drought and
reduced
From 2002 to 2016, Braskem
treated domestic sewage)
volume
in
the
reservoirs
invested approximately BRL
improved by 27%, and - in
responsible for water supply
280 million in projects toward
2016 alone - 15.4 million
continue
to
show warning
improving water
efficiency
m³ were reused.
signs
in Brazil. Considering
at its plants in Brazil, with
•
this scenario, and all those
accumulated
savings
of
with a potential impact on the
over BRL 175 million in cost
From 2014 to 2016, the
reuse of 25 million m3
of water was calculated
Company’s global operations,
reduction with the treatment of
through
the Aquapolo,
Braskem has been investing
liquid effluents and operating
the largest project for the
heavily in the assessment and
costs with water consumption.
production of
industrial
management
risk of water
The following results stand out:
reclaimed water in Latin
scarcity in its production units
•
The total volume of water
America,
releasing
throughout the country.
As a result of this initiative, in
2016 the Company completed
consumed was 72.4 million
m3/year. The consumption
index reached 3.93m3/t,
totaling an accumulated
a
to
volume
equivalent
10,000 Olympic swimming
pools for drinking water
consumption in the ABC
the assessment of the regions
improvement of about 5%
region, in São Paulo, Brazil.
where it operates crackers to
since 2002.
help guide investments where
•
The
liquid
effluent
Braskem
also
uses
specific
25
MILLION m3
Volume of
water reused
through the
Aquapolo
Project.
there is a need to reduce water
consumption or abstraction.
For 2017, action plans will
generation index reached
1.11m3/t,
historical
result
since
best
the
be developed
focusing on
2002,
representing
an
reducing water risk, in addition
accumulated improvement
indicators
to measure
its
water efficiency, such as water
consumption (m3/t of product)26
and generation of effluents (m3/t
of product). The 2016 result
WATER CONSUMPTION – m3/t
-5%
to extending the study of water
of about 41%, and savings
was 6.0% better than the agreed
scarcity
risk
for
the other
of BRL 115 million with
regions in Brazil and abroad
effluent treatment.
for the water stress scenario
•
From 2011 to 2016, the
according to the climate risk
water
reuse percentage
upon target for the year (4.18
m3/t), and 3.0% better than the
2015 performance (4.05 m3/t).
The achievement of the target
study already carried out by
(rainwater,
treated
represented a savings
for the
4.14
...
4.23
4.30
4.16
4.05
3.93
the Company.
industrial effluents, and
Company of nearly BRL 12 million.
2002
2012
2013
2014
2015
2016
26 Cubic meters per ton of product.
Note: Braskem Idesa’s consumption in Mexico was not recorded in 2016, since
the Complex was at the beginning of its operation and in the stabilization phase.
Beginning 2017, the unit’s consumption will be part of this indicator.
2016 | Braskem | Annual Report 86
The good performance regarding
in these industrial units, thus
The
industrial units
located
the year’s water efficiency is
improving the rates for specific
mainly due to internal initiatives
consumption and loss reduction.
by the industrial teams toward
in ABC in São Paulo (Brazil),
which used 7,957,425 m3, and
where almost all of the water
improving the cycle of the cooling
In
2016,
Braskem
utilized
consumed is reclaimed water
towers, which represent important
figures
in water consumption
an absolute
total volume of
15,395,138 m3 of reclaimed water.
(Aquapolo), are noteworthy.
G4-EN10
RECLAIMED WATER
18.5%
6.4%
12.1%
23.8% 29.5% 28.1%
18.5%
17.2%
6.4%
17.4%
25.1% 23.4%
15.6%
15.1%
11.0%
11.0%
9.5%
8.3%
2011
2012
2013
2014
2015
2016
Process Improvement
Inherent Reuse
(1) Reuse in Process Improvements is any reuse that comes from modifications in the current units, including or improving processes.
(2) Inherent reuse is that which was always part of the industrial unit as part of the plant’s original process.
The
effluent
generation
to
the
previous
year’s
result for the indicator, and
indicator in 2016 presented a
performance. Despite having
the achievement of the target
4.3% lower result compared to
the annual target (1.16 m3/t),
lower compared
and 3.5%
suffered negative impacts due
represented a savings for the
to operational problems,
it
Company of BRL 1.7 million.
was Braskem’s best historical
GENERATION OF LIQUID EFFLUENTS – m3/t
1.94
...
-43%
1.28
1.17
1.22
1.15
1.11
2002
2012
2013
2014
2015
2016
Note: Braskem Idesa’s generation in Mexico was not recorded in 2016, since the Complex was at the beginning of its operation and in the stabilization phase. Beginning 2017, the unit’s generations will be part of this indicator.
2016 | Braskem | Annual Report 87
DISTRIBUTION OF EFFLUENT DISPOSAL BY LOCATION
G4-EN22
Countries
Location
Effluent Destination
Volume of effluents
discharged (m3/year)
Treatment method
COD (kg/year)
Rio de Janeiro
Canal de Coelho
Bahia
Odebrecht Ambiental
Treatment Station
587,244
6,157,184
Biological
Pre-treatment with water-oil separator and biological
treatment at Odebrecht Ambiental
69,939
3,492,411
Alagoas
Ocean disposal
3,375,706
Neutralization/Aerobic process (activated sludge)
320
Brazil
Rio Grande do Sul
External Effluent Treatment
Station (ETE)
Ponte Funda Stream
São Paulo
Perequê River
4,155,331
85,153
271,386
Tamanduateí River
1,949,353
La Porte
Houston navigation channel
Marcus Hook
Delaware River via POTW
United States
Germany
Neal
Seadrift
Big Sandy River
Victoria Barge Canal
Oyster Creek
Oyster Creek
Schkopau
Wesseling
Saale River
Rio Rhine
443,044
695,995
241,157
303,324
86,417
83,382
149,904
Mexico
Mexico
Huazuntlán River
1,271,951
Pre-treatment with water-oil separator and primary,
secondary (biological) and tertiary treatments
1,261,223
Sent for external treatment
290,466
Water-oil separator and primary treatment through
decantation and filtration
Conventional primary and physical,
physicochemical, and biological
Primary treatment and chlorination
Primary, biological, and chlorination treatment
Primary treatment and chlorination
External treatment
External treatment
External treatment
Primary and biological treatment
Internal treatment with partial reuse and sending
to the Huazuntlán River
NA
333,868
2,658
6,960
1,471
NA
NA
NA
1,799
-
Among the main impacts on effluent generation in 2016 are the quality of the abstracted water, the influence of the summer temperature in some regions, operational problems, and
shutdowns for maintenance. On the other hand, positive actions were implemented, such as increasing the concentration cycle in cooling towers, optimizing operating procedures
with consequent reuse of water currents and reduced losses.
2016 | Braskem | Annual Report 88
Energy
Efficiency
G4-EN3, G4-EN5, G4-EN6
Braskem units always seek to
was Braskem’s best historical
minimize
their environmental
result for the indicator and a
impact. To this end, they work to
total reduction of 14% since the
find alternatives that help reduce
beginning of measurement in
energy consumption, improving
2002. Among the actions that
efficiency, and searching for the
contributed to this result are the
best available energy matrix.
energy optimization
initiatives
for furnaces, boilers, turbines,
The result for the year was
pumps, and compressors, better
in line with the agreed upon
energy utilization in the plants,
target for 2016 (10.25 GJ/t),
greater efficiency
in
steam
and 2.3% below
the 2015
generation, and the development
performance (10.49 GJ/t). It
of control systems.
ENERGY CONSUMPTION - GJ/t
11.90
-14%
10.67
10.74
10.55
10.49
PERCENTAGE OF CONSUMPTION PER TYPE OF ENERGY
IN RELATION TO TOTAL CONSUMPTION
Electricity
Natural gas
2012
2013
2014
2015
2016
10.3%
9.9%
10.2%
9.0%
9.0%
12.0%
8.9%
13.0%
16.0%
20.0%
External fuels (mainly oil and coal)
4.8%
4.8%
5.2%
5.5%
6.0%
Residual internal fuels from the petrochemical process
72.9%
76.3%
71.6%
68.8%
65.0%
PERCENTAGE OF RENEWABLE ENERGY CONSUMPTION
COMPARED TO TOTAL ENERGY CONSUMPTION
2012
2013
2014
2015
2016*
8.95%
9.39%
7.17%
8.26%
7.44%
* The 2016 data does not include Braskem Idesa unit in Mexico
Among the main initiatives in
emissions of 3.4 kg/t MVC/day.
drop in natural gas consumption
Brazil toward reducing energy
In addition, the plant managed
(savings of BRL 1.2 million per
consumption in the units, the
to reduce consumption by 1.2
year).
10.25
following stand out:
...
ALAGOAS - PVC2 AL
Savings of BRL 1.7 million per
t/h of steam in the P3201A/B
and P3206 heat exchangers,
reducing CO2 emissions (savings
of BRL 657,000 per year) and
SÃO PAULO - PP3 ABC
Savings of BRL 900,000 avoiding
the burning of 320,000 kg of
2002
2012
2013
2014
2015
2016
Note: Braskem Idesa’s consumption in Mexico was not recorded in 2016, since
the Complex was at the beginning of its operation and in the stabilization phase.
Beginning in 2017, the unit’s consumption will be part of the indicator.
year
through
reduced vapor
steam
consumption
through
hydrocarbons by
the Flare.
consumption
in
the MVC T
energy optimization, with a
The result was a reduction in
1302 and T1502 purification
column, with a reduction in CO2
1.13 million m³ drop in water
consumption and 1.11 million m³
greenhouse gases emissions
equivalent to 1,100 t of CO2.
2016 | Braskem | Annual Report In 2016, Braskem’s production
that presented the most gains
units recorded a gain of BRL 134.9
was the one implemented at UNIB
million through initiatives toward
2 RS (Rio Grande do Sul), which,
improvements
in
processes,
by optimizing the furnaces, had
energy sales, furnace optimization,
a gain of BRL 38.4 million. By
reduced steam consumption, and
reducing the technical coefficient
improved boilers and turbines.
of steam from evaporation to
These initiatives reduced energy
2.55, the CS 1 AL (Alagoas) unit
consumption by 5,471,141 GJ in
reduced its energy consumption
the year. In Brazil, the initiative
by 1,261,711 GJ.
G4-EN6
INITIATIVES TOWARDS
IMPROVEMENTS IN PROCESSES
ECONOMIC GAIN
(BRL MILLION)
Improvements in production processes
(except furnaces) and sale of electricity
Furnace optimization
Reduced steam consumption
Boiler and turbine improvements
TOTAL
56.9
60.5
6.3
11.1
134.8
89
Improvements in energy efficiency
in Triunfo: the use of coal with
environmental control guarantee
In recent years, the Brazilian
to increase the capacity and
system, called Miecon, began
electricity sector has been
quality of
coal, optimize
operations in August 2016 and
experiencing
periods
instability.
Based
on
of
a
the use of natural gas, and
made it possible to increase
increase
the efficiency of
and optimize the use of coal,
predominantly
hydroelectric
cogeneration.
matrix, droughts that affected
and increase the retention of
ash generated by burning -
a large part of the country
As part of these strategic
without additional costs. In
influenced tariffs, and even
initiatives,
Braskem
in
this process to improve energy
with
recovered
reservoir
Triunfo, Rio Grande do Sul
efficiency, the Company sought
levels, the scenario is still
challenging.
(Brazil) took advantage of the
shutdown cycle (from June
coal with higher energy value
rates,
lower emission
and
In the search for alternatives
coal-fired boilers in order to
stringent
emission
control
that guarantee a supply of
promote improvements in the
standards
of
particulate
to September) of the two
while complying with the most
clean energy with prices
efficiency of the electrostatic
matter.
compatible with the needs
precipitator
system,
of
the business, Braskem
responsible for retaining ash
The changes
integrate the
has been working hard to
from combustion gases.
strategic
plan
to
obtain
analyze trends and, through
increased energy efficiency
internal efforts, to implement
The Company invested BRL
while
guaranteeing
innovative
strategies
energy generation
in
for
its
2.7 million in a new control
environmental control, one of
system
that will generate
the Company’s main focuses
production
units.
These
daily savings of approximately
of attention.
initiatives
include projects
10 MW of energy. The
2016 | Braskem | Annual Report 90
Waste Management
G4-EN23
For
Braskem,
the
correct
During the year, 37,334,108
When evaluated according to
Regarding waste disposal, the values have remained at the same level over
management of all generated
kg
of waste
considered
Braskem’s specific eco-efficiency
the years, with some changes related to the storage of this waste for later
waste in its production process
hazardous
and 18,057,602
indicators, which considers the
disposal, as well as seasonal generation associated with expected events
is essential, and such action is
kg of non-hazardous waste
generation of waste per ton
and not specifically related to production.
part of the Safety macro objective
were generated, both with an
produced, this value has been
of the Company’s Sustainable
increase compared to 2015,
steadily declining over the last 15
Development Strategy. With this
mainly due to the specific
years, reaching a total reduction
focus in mind, among the actions
characteristics of the production
of 63% since 2002.
carried out by the Company in
process and the impacts of
2016, the following stand out:
seasonal and non-seasonal
Thus, based on this data, in 2016
initiatives toward reductions at
events, such as unscheduled
the index was in line with the
the source and optimizing internal
shutdowns (which may occur
established target (2.16 kg/t), but
procedures, creating economic
due to a power outage, for
7.5% higher than the previous
value by transforming waste into
example),
and
scheduled
year’s performance (2.01 kg/t).
by-products,
reverse
logistics,
shutdowns
for maintenance
Reaching the target represented
and actions toward reuse and
and
improvements
in plant
savings
for the Company of
composting, among others.
efficiency.
nearly BRL 600,000.
28 These results do not include the Braskem Idesa unit in Mexico, since the Complex was still starting operations and in the stabilization
phase. Beginning in 2017, the unit’s generations will be part of the indicator.
Destination
of generated
waste (%)
Potential for
reuse
2012
2013
2014
2015
2016
55.3%
57.1%
60.6%
61.8%
56,2%
Reuse
29.6%
21.7%
26.8%
29.7%
27,3%
Discarded
15.1%
21.1%
12.6%
8.5%
16,5%
Allocated
waste
(thousand kg)
Recycling
Recovery
(including
energy)
Landfill/
Industrial
landfill
2012
2013
2014
2015
2016
7,737
19,858
7,930
4,628
7,371
4,165
3,169
5,424
3,975
7,247
14,112
11,152
21,493
2,804
9,146
WASTE GENERATION - kg/t
5.78
2.28
2.20
2.30
...
2.01
2.16
2002
2012
2013
2014
2015
2016
Note: In 2016 Braskem Idesa’s (Mexico) generations were not recorded, since the Complex was still
starting operations and in the stabilization phase. Beginning in 2017, the unit’s generations will be part
of the indicator.
-63%
On-site storage
474
187
748
Incineration
11,552
17,263
20,408
245
534
290
306
238
662
1,859
1,713
739
274
1,303
8,423
482
475
Reuse
Composting
Underground
waste injection
Other*
TOTAL
1,933
8,568
7,960
0
1,931
4,040
9,650
5,000
3,700
17,022
53,936
70,443
64,868
19,692
53,400
* Other: autoclave; thermal vacuum treatment to remove mercury, co-processing of waste in rotary
clinker kilns for the production of cement, soil decontamination through thermal desorption.
2016 | Braskem | Annual Report Climate Change
G4-2, G4-EC2, G4-EN15, G4-EN16, G4-EN17, G4-EN18, G4-EN19
In
2016,
Braskem
took
forums, as well as government
global
initiatives
regarding
important steps in the process
initiatives, seeking to support
climate
change,
including
of evolving the climate change
discussions on options
that
strategy, with emphasis on
align the competitiveness of
the
of
International
Council
Chemical
Associations
strengthening
adaptation
the Brazilian industry with a
(ICCA) and the Carbon Pricing
and effective actions toward
low carbon scenario.
Leadership Coalition
(World
reducing its greenhouse gas
Bank), Braskem has been
(GHG) emissions. Today, the
Braskem’s
participation
in
acting as one of the leaders in
Company plays an important
national
and
international
developing plans and initiatives
role in international debates
forums has been increasingly
toward carbon pricing and
that define policies aligned with
strategic, shedding light on the
creating the proper tools to
the
industry’s commitments
Company’s constant efforts to
encourage
companies
and
to reducing GHG emissions.
reduce and mitigate social and
governments to take action
In
Brazil,
the
Company
environmental
impacts. With
toward a low carbon economy.
participates in several business
active participation in the major
CLICK HERE TO LEARN
MORE ABOUT BRASKEM’S
PARTICIPATION
IN NATIONAL AND
INTERNATIONAL
WORKING GROUPS AND
FORUMS.
91
Important
Steps
•
In 2016, Braskem’s latest GHG emissions inventory was
awarded, for the 6th consecutive year, the Gold category
classification in the Brazilian GHG Protocol Program.
•
For
the fifth
consecutive
time, Braskem has
been selected to be part of the Carbon Efficient
Index (ICO2) portfolio of BM&FBOVESPA (Brazil).
•
For the first time, Braskem is part of CDP’s “A
List”: the maximum score of the global ranking
of companies regarding its strategies and results
associated with climate change. Also, Braskem is
the first Brazilian industry to achieve this result.
•
Braskem participated in the UN Conference on Climate
Change
(COP-22) held
in Morocco, contributing
to the discussions on carbon pricing
instruments
and disseminating its practices and progress in the
management and adaptation
to climate change.
•
The Company conducted workshops with Suppliers on
training and technical support to identify opportunities
to reduce emissions and costs. Almost 44% of the
emissions outside the direct control of Braskem (Scope
3) are now reported to the Company.
2016 | Braskem | Annual Report GREENHOUSE GASES
EMISSIONS (GHG)
Braskem’s corporate GHG emissions inventory considers all categories
of Scopes 1, 2, and 3 in 100% of its operations.
GHG EMISSIONS (SCOPE 1 E 2) - ktCO2e
8%
12.000
959
10.000
10,199
771
9,565
874
9,743
1,088
1,077
980
9,384
9,140
9,253
8.000
6.000
4.000
2.000
0
92
Considering only Scope 1 emissions directly managed by Braskem,
in 2016 the actions and initiatives implemented totaled a cumulative
reduction of nearly 19% compared to base year 2008.
Carbon Intensity (scope 1) - tCO2e/t
0.659
19%
0.581
0.578
0.564
0.540
0.532
Scope 1
Scope 2
...
2008
2012
2013
2014
2015
2016
Note: Braskem Idesa’s emissions in Mexico were not included in 2016, since the Complex was at
the beginning of its operation and in the stabilization phase. Beginning in 2017, the Complex’s
emissions will be part of this indicator.
CARBON INTENSITY (SCOPE 1 AND 2)
0,721
18%
...
2008
2012
2013
2014
2015
2016
Note: Braskem Idesa’s emissions in Mexico were not included in 2016, since the Complex was at the beginning of its
operation and in the stabilization phase. Beginning in 2017, the Complex’s emissions will be part of this chart.
0,628
0,630
0,630
0,604
0,589
...
2008
2012
2013
2014
2015
2016
Note: Braskem Idesa’s emissions in Mexico were not included in 2016, since the Complex was at
the beginning of its operation and in the stabilization phase. Beginning in 2017, the Complex’s
emissions will be part of this indicator.
2016 | Braskem | Annual Report Among the main initiatives to reduce emissions are:
In southern Brazil, replaced part of the fossil fuel consumption
with the additional purchase of electricity, implying reduced
absolute emissions.
Actions to optimize operational and energy efficiency.
Energy reduction and/or recovery initiatives.
FIRST INVENTORY OF
GHG EMISSIONS FROM
OPERATIONS IN MEXICO
Braskem
Idesa’s operations
the
Company’s
efficiency
carry significant weight
in
indexes after it is stabilized.
93
BRASKEM IDESA
GHG EMISSIONS - tCO2e/year
(SCOPE 1)
58,641
1,474,227
BRASKEM IDESA
CARBON INTENSITY - tCO2e/t
1,527
1,588
Scope 1
Scope 2
Scope 1
Scope 1 + 2
MANAGING INDIRECT EMISSIONS
Since 2011, Braskem has carried
(UNPOL), working together with
distance; and emissions by
the Company’s results, with
out a GHG emissions inventory
the Sustainable Development
volume per distance traveled
direct emissions
(Scope 1)
On the other hand, it is worth
of Scope 3 (indirect emissions)
area, created a tool enabling
-
“Comprehensive
GHGE”),
representing 14% of Braskem’s
mentioning
that
the
team
and has significantly evolved
practical and rapid measurement
which calculate the relationship
total. Given the pre-start and
qualified
itself, and carried
in actions to engage its supply
of Greenhouse Gas Emissions
between
the
transported
start of operations,
results
out the emissions inventory
chain and to identify initiatives to
in
the
logistics
transport of
volumes and traveled distances.
for 2016 were
lower
than
including all categories of
reduce these emissions, while also
finished products in any mode
expected,
since on
some
direct and indirect emissions,
strengthening involvement in areas
of transport. With this, it was
The chart on the next page shows
occasions the unit operated
which will enable management
such as Procurement, Logistics,
easier to visualize the emissions
the emissions by volume per
without
its
operational
and monitoring beginning at
Services to People, Information
of cargo transport by business,
traveled distance (Comprehensive
efficiency at full load. Because
the plant’s start-up phase. Due
Technology, acquisition of raw
by type of transport, and even
GHGE) indicator, month by month.
it started operating in 2016
to the technology used in this
material, and others.
by Client. To make comparisons
From now on, actions will be
and
to
its more modern
new unit, the Company expects
possible, three KPIs were created
taken toward critically analyzing
technology, the unit in Mexico
that its result in the coming
In 2016, the Logistics area of
(emissions
by
transported
the results and identifying actions
is
expected
to
improve
years will be one of its best.
the Polyolefins Business Unit
volume; emissions by traveled
to reduce emissions.
2016 | Braskem | Annual Report 94
EGHG EMISSION MANAGEMENT IN LOGISTICS
ABSOLUTE EMISSIONS (tCO2e)
(kgCO2/t.km)
0.0262
0.0261
0.0265
0.0263
0.0262
0.0278
15,803,961
Expansion of the
measurement scope for
2016: 3,118,478
14,756,583
0.0257
0.0259
0.0265
0.0264
0.0277
0.0267
11,999,834
11,533,672
11,351,439
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
In the area of Services to People, Braskem joined an initiative with the transport
supplier to purchase carbon credit through the use of fuels from renewable
sources in its fleet of vehicles. The initiative has been implemented and is in the
process of monitoring and raising user awareness, in order to achieve maximum
adherence and consequently obtaining carbon credits.
2012
2013
2014
2015
2016
Note: Braskem Idesa’s emissions in Mexico were not included in 2016, since the Complex
was at the beginning of its operation and in the stabilization phase. Beginning in 2017, the
Complex’s emissions will be part of this chart.
The increase in Braskem Scope 3 absolute emissions was mainly due to the following factors:
Increased production in absolute figures, with the consequent increase in
consumption of inputs and raw materials, among others.
Emissions from Braskem terminals, previously not yet included.
In the category referring to the use of the products sold by the Company, the
beginning of reporting emissions associated with the gasoline produced and
sold by the crackers, which was not previously included.
In the category referring to the end-of-life treatment of products sold, the report
was expanded to approximately 80% of the products.
2016 | Braskem | Annual Report OTHER EMISSIONS
G4-EN20, G4-EN21
In addition to greenhouse gas emissions, Braskem manages other air
emissions within its responsibility, such as ozone-depleting27 substances
and pollutants from fuel combustion, such as NOX, SOX, and others.
EVOLUTION OF EMISSION OF OZONE LAYER-
DEPLETING SUBSTANCES (SDCO)
SDCO
Tons of CFC-11
Equivalent
*Not reported in the period.
2012
(t)*
2013
(t)
2014
(t)
2015
(t)
2016
(t)
-
180.5
48.6
55.3
3.0
Braskem has also been replacing ozone-depleting substances with
other substances outside the Montreal Protocol lists.
EVOLUTION OF EMISSIONS OF SOX, NOX AND OTHER
SIGNIFICANT SUBSTANCES
Emission(1)
NOX
SOX
Volatile Organic
Compounds
2012
(t)
2013
(t)
2014
(t)
2015
(t)
2016
(t)
8,756
12,157
11,421
9,546
5,880
6,582
11,509
4,503
9,651
3,137
1,756
2,707
3,881
3,808
6,139(2)
860
531
Particulate Matter
1,088
1,547
1,225
911
Toxic Air
Pollutants(3)
Other(4)
142
549
97
652(2)
7,121
6,108
6,190
14,495(2)
4,145
(1)The methodologies used are recommended by state environmental agencies. Where there
is no measurement, estimates (emission factors) based on recognized methods, such as
AP-42 from USEPA, are used.
(2) The plants have been expanding their assessments, which explains the increase in these
parameters.
(3) Includes Toxic Air Pollutants and HAP
(4) Includes total hydrocarbons and carbon monoxide.
27 Ozone depletion refers to the decline in the total volume of ozone in the Earth’s
stratosphere (the ozone layer)
95
ENGAGEMENT OF SUPPLIERS
IN EMISSIONS REDUCTION
Braskem does not have mandatory requirements
the preparation and reporting of an emissions
for its Suppliers, but has been developing voluntary
inventory, and identify risks and opportunities are
engagement initiatives for the past five years as a
carried out annually with support from CDP Supply
means of more efficiently managing GHG emissions
Chain. As a result, there has been significant
and the risks and opportunities in the chain
evolution regarding the representativeness of
upstream. Actions to raise awareness, encourage
Scope 3 emissions.
SUPPLIER ENGAGEMENT - CLIMATE CHANGE
200
150
100
50
0
No. of Suppliers invited
No. of engaged Suppliers
% of Suppliers’ adherence
% of Scope 3 coverage
60%
182
57%
177
42%
46%
31
0%
13
39
1%
18
2012
2013
42
25
9%
2014
54%
44%
96
104
11%
2015
2016
Braskem
has
expanded
Supplier engagement toward
Water Resources, focusing on
those located in regions with
potential water stress, and is
training its buyers to broaden
the management of
the
reported aspects.
SUPPLIERS’ ENGAGEMENT
WATER RISK MANAGEMENT
53
21
Total number of
suppliers invited
Suppliers engaged
2016 | Braskem | Annual Report 96
CARBON PRICING
After creating a work platform to assist
impact regulation, identifying positive and
in making investment decisions, Braskem
negative contributions to projects. Thus,
concentrated its actions in 2016 on:
the positive or negative economic values
•
Validating the carbon price with
impact caused by emissions are calculated
senior management.
for those projects that reduce or generate
corresponding
to
the environmental
•
Adapting its standards and
emissions.
procedures.
•
Aligning and training leaders and
This process is now entering the monitoring
key stakeholders.
phase, in which will be evaluated the
•
Using this criteria to support
effectiveness of the price defined compared
decisions for the 2017 investment
to the change in project eligibility in the
portfolio.
decision-making process. All actions were
concentrated in Brazil, and in 2017 the
The tool calculates the virtual cost of
Company will define and implement a
carbon as a preliminary path for future
strategy for its international units.
To understand
impact
To calculate carbon
footprint
To reduce
emissions
To create
platform
To
determine
internal
price
To apply
price
To monitor
performance
It is worth mentioning that Braskem also actively participates in the Emissions
Trading Simulation (SCE) and the Companies for Climate Platform, a constructive
carbon market experience for debate and knowledge generation, expanding the
contribution of companies to government proposals.
2016 | Braskem | Annual Report RISKS AND OPPORTUNITIES -
ADAPTATION TO CLIMATE CHANGE
In
information;
interpreting
ensure
order
its
to
in
97
Brazil, United
States,
competitiveness
while
information; and expansion
and Germany until
2040,
contributing to the transition to
of
risk management
by
with external support
from
a new development model based
incorporating climate variables
the National
Institute
of
on the low carbon economy,
in
the Company’s strategic
Space Research (INPE) and
Braskem has been working on
planning.
a comprehensive adaptation
specialized
consulting,
the
Company complemented these
plan
that works on
five
After identifying and prioritizing
studies by identifying the main
fronts:
internal engagement;
potential opportunities
and
potential impacts for Braskem
external coordination; securing
climate
risks
in all plants
Idesa’s operations in Mexico.
POTENTIAL CLIMATE RISK SCENARIOS
2015 Scenario
2040 Scenario
k
s
i
r
l
a
i
t
n
e
t
o
p
h
g
h
i
h
t
i
w
s
t
i
n
u
l
a
i
r
t
s
u
d
n
i
f
o
r
e
b
m
u
N
14
4
12
3
11
3
2
1
1
1
1
1
1
Intense
Rain and
Electrical
Discharges
Water
Shortage
Hurricanes
and Tropical
Cyclones
Energy
Generation
Flooding
Epidemics
Heat Waves
Rising Sea
Levels
In Brazil, the Company validated,
that will be monitored by the
with its leaders, the potential
sponsor of the Company’s Climate
climate risks and the respective
Change macro objective.
actions for the most relevant risks,
which will be managed periodically
After validating the actions for
through a framework based on a
potential risk scenarios, Braskem
methodology approved with the
will focus on validating scenarios
Getúlio Vargas Foundation (FGV),
and actions
for
international
in São Paulo, and with indicators
operations.
2016 | Braskem | Annual Report
98
OVERVIEW OF THE CLIMATE CHANGE ADAPTATION PLAN
PLANTS OF BRAZIL
NUMBER OF ACTIONS - “TOTAL” AND “(IN PROGRESS)”
Region/Location
Intense Rain
and Electrical
Discharges
Water
Shortage
Hurricanes
and Tropical
Cyclones
Energy
Generation
Flooding
Rising
Sea levels
BRAZIL
NORTHEAST
SOUTHEAST
SOUTH
AL
BA
RJ
SP
RS
-
-
-
1(1)
1(1)
3(2)
5(2)
4(1)
3(1)
-
-
-
-
-
4(1)
1(0)
2(1)
1(1)
1(0)
-
1(1)
1(0)
-
-
3(1)
2(0)
-
-
-
-
Total
6(3)
7(3)
5(2)
8(3)
7(2)
BRASKEM TOTAL
2(2)
15(6)
4(1)
5(2)
6(2)
1(0)
33(13)
(-)= not applicable
Example: 4(1) = total of 4 actions and 1 in progress
2016 | Braskem | Annual Report 99
GRI G4 Content Index
INDICATOR
DISCLOSURE
GENERAL STANDARD CONTENT
Strategy and Analyses
G4-1
G4-2
Organizational Profile
G4-3
G4-4
G4-5
G4-6
G4-7
G4-8
G4-9
G4-10
G4-11
G4-12
SP Office - Headquarters
Rua Lemos Monteiro, 120, Edifício Odebrecht
Butantã
ZIP CODE: 05501-050
Phone: +55 11 3576-9000
98.9% of Team Members in Brazil are covered by collective bargaining agreements, 42.2% in
Mexico, and 8.9% in the USA.
PAGE
03
03
08
08, 10
10
07, 10
08
09, 50, 76
07, 08
57
07, 70, 72
2016 | Braskem | Annual Report 100
INDICATOR
DISCLOSURE
Braskem Idesa Complex beginning of operation
In principle, and in accordance with the Health, Safety, Environment, Quality and Productivity, Braskem
does not produce, handle, use, commercializes, transports or discard any product if it does not
can do it safely, with minimal impact to the environment.
G4-13
G4-14
G4-15
G4-16
Identified Material Aspects and Boundaries
G4-17
G4-18
G4-19
G4-20
G4-21
G4-22
G4-23
The following comment concerns indicators G4-22 and G4-23: it should be noted that the results of quantiQ
were reported in the Financial Statements of the report, but are not included in social and environmental
indicators. Its management was already carried out independently even before the sale of the company.
quantiQ was sold on 1/10/2017 (signing), with the closing of the transaction on 4/03/2017 (closing).
Stakeholder Engagement
G4-24
G4-25
G4-26
G4-27
Report Profile
PAGE
-
22
17, 22
22
08
18, 20
18
18
18
18
18
18
18
2016 | Braskem | Annual Report INDICATOR
DISCLOSURE
PAGE
101
G4-28
G4-29
G4-30
G4-31
G4-32
G4-33
Annual, covering the fiscal year from January 1 to December 31, 2016
2015
Annual
G4 Core
The external assurance, performed by KPMG, occurs at the request of the Leaders and is part of the set of
annual goals of those responsible for preparing the report.
Governance
G4-34
G4-39
Ethics and Integrity
G4-56
G4-57
G4-58
ETHICS AND INTEGRITY
SPECIFIC STANDARD CONTENT
Material Aspects: All
Macro Objectives: All
Material Aspects: Economic Performance
120
27
27
32
32
31, 33
2016 | Braskem | Annual Report 102
PAGE
35, 39
91
77
60
59
64
64
70
INDICATOR
DISCLOSURE
G4-EC1
G4-EC2
G4-EC4
Aspects: Market Presence
Macro Objectives: Local Development
G4-EC5
G4-EC6
Aspects: Indirect Economic Impacts
Macro Objectives: Local Development
G4-EC7
G4-EC8
Aspectos: práticas de compra
Macro Objetivos: desenvolvimento local
G4-EC9
Aspects: Materials
Macro Objectives: Renewable Resources
G4-EN1
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 a renewable source, thereby reducing its demand for non-renewable resources. Braskem
understands materials as those present in the end product. Non-renewable materials are resources that are
not renewed at the same rate at which they are consumed, such as minerals, metals, oil, coal, and gas. The
values used are not disclosed because it is commercially sensitive information.
2016 | Braskem | Annual Report 103
INDICATOR
G4-EN2
Aspects: Energy
DISCLOSURE
PAGE
Braskem continuously invests in renewable raw materials. In industrial plants, reuse is maximized through
the return of currents within the production process, which would be equivalent to internal recycling.
Investments in energy
and chemical recycling are being made for the future.
Macro Objectives: Energy Efficiency
G4-EN3
G4-EN5
G4-EN6
Aspects: Water
Macro Objectives: Water Efficiency
G4-EN8
G4-EN10
Aspects: Biodiversity
Macro Objectives: n/a (only material for Mexico)
G4-EN12
was no activity industry, such as in Mexico, where Braskem Idesa Complex finalized the construction of its
The main impact of Braskem in biodiversity occurs when new units are built in areas where before there
petrochemical plant. These impacts are reversible in the medium term (approximately 10 years).
G4-EN14
miqueliana(flora, critical status) in Mexico. Moving the plants found to the environmental protection area
By 2016, only one endangered species was at risk of being affected by Braskem’s operation: the Ceratozamia
created by the Company significantly increased the number of plants.
Aspects: Emissions
Macro Objectives: Climate Change
88
88
88, 89
85
85, 86
2016 | Braskem | Annual Report INDICATOR
DISCLOSURE
PAGE
104
G4-EN15
G4-EN16
G4-EN17
G4-EN18
G4-EN19
Macro Objectives: Climate Change
G4-EN20
Macro Objectives: Energy
G4-EN21
Macro Objectives: Safety
G4-EN23
Aspects: Products and Services
Macro Objectives: Application Development
G4-EN27
In the agribusiness segment, the use of polypropylene to produce raffia sacks prevented the emission of
190,600 tons of CO2e. In the automobile segment, the use of PP to replace several materials avoided the
emission of 4.5 million tons of CO2e. In the segment of real estate paints, the use of PP in buckets, replacing
the tin can, avoided the equivalent of 19,500 tons of CO2e. In total, for the PP segment, the emission of 4.7
million CO2e. was avoided.
Macro Objectives: Post-Consumption
G4-EN28
Material Aspects: Compliance
91
91
91
91
91
95
95
90
50
65
2016 | Braskem | Annual Report 105
INDICATOR
DISCLOSURE
PAGE
Macro Objective: Strengthening of Practices
Braskem was not definitively ordered to pay fines or to comply with non-monetary sanctions in the period.
G4-EN29
For the purpose of this report, the same materiality criteria used on the Reference Form established by
the Brazilian Securities and Exchange Commission (CVM) was adopted, under Normative Instruction CVM
480/2009 - BRL 60 million. For environmental issues, the amount of BRL 10 million was considered.
Aspects: Overall
Macro Objectives: Climate Change, Energy, Water
G4-EN31
Aspects: Employment
Macro Objectives: Economic and Financial Results
G4-LA1
G4-LA2
G4-LA3
Material Aspects: Diversity and Equal Opportunities
Macro Objectives: None, because the related aspects are not material
G4-LA6
G4-LA8
The health and safety data recording system does not break down data by gender or third parties. The monitoring
methodology for absenteeism, which was expected to be adapted by the second half of 2016, is still being reviewed.
Material aspects: Training and Career
Macro objectives: Strengthening of Practices
G4-LA10
G4-LA11
80
62
61
61
81
63
61
60
2016 | Braskem | Annual Report INDICATOR
DISCLOSURE
PAGE
Material Aspects: Diversity and Equal Opportunities
Macro Objectives: None, because the related aspects are not material
106
57
64
82
03, 31
G4-LA12
Material Aspects: Local Communities
Macro Objectives: Local Development
G4-SO1
G4-SO2
Material Aspects: Anti-Corruption
Macro Objectives: Strengthening of Practices
G4-SO5
Material Aspects: Anti-Corruption
Macro Objectives: Strengthening of Practices
G4-SO6
Zero. In Brazil, in 2016
Braskem made no donations to political parties.
Material Aspects: Unfair Competition
Macro Objectives: Strengthening of Practices
G4-SO7
Indicator is restricted to the Brazilian territory. In 2016, no actions were recorded regarding the indicator
G4-SO8
Regarding this indicator, the following should be considered: (i) The Leniency Agreement, referred to above
as the "Braskem Global Agreement"; (ii) in addition, Braskem was not definitively ordered to pay fines
or to comply with non-monetary sanctions in the period in question. For the purpose of this report, the
same materiality criteria used on the Reference Form established by the Brazilian Securities and Exchange
Commission (CVM) was adopted, pursuant to Normative Instruction CVM 480/2009 - BRL 60 million. For
environmental issues, the amount of BRL 10 million was considered.
2016 | Braskem | Annual Report 107
INDICATOR
DISCLOSURE
PAGE
Material Aspects: Client Health and Safety
Macro Objectives: Safety
G4-PR1
G4-PR2
Material Aspects: Product and Service Labeling
Macro Objectives: Safety
G4-PR3
G4-PR4
Aspects: Marketing Communications
Macro Objectives: Strengthening of Practices
No record of complaints.
No record of complaints.
G4-PR7
There have been no instances of non-compliance with regulations and voluntary codes regarding marketing
communication, including advertising, promotion, and sponsorship.
Material Aspects: Compliance
Macro Objectives: Strengthening of Practices
Braskem was not definitively ordered to pay fines or to comply with non-monetary sanctions in the period.
G4-PR9
For the purpose of this report, the same materiality criteria used on the Reference Form established by
the Brazilian Securities and Exchange Commission (CVM) was adopted, under Normative Instruction CVM
480/2009 - BRL 60 million. For environmental issues, the amount of BRL 10 million was considered.
Aspects: Non-discrimination
Macro Objectives: Strengthening of Practices
G4-HR3
84
84
33
2016 | Braskem | Annual Report 108
KPMG
KPMG Financial Risk & Actuarial Services Ltda.
Rua Arquiteto Olavo Redig de Campos, 105, 6º andar - Torre A
04711-904 - São Paulo/SP - Brasil
Caixa Postal 79518 - CEP 04707-970 - São Paulo/SP - Brasil
Telefone +55 (11) 3940-1500, Fax +55 (11) 3940-1501
www.kpmg.com.br
Limited assurance report
issued by independent
auditors
Independent auditors’ responsibility
Our responsibility is to express a conclusion about the information in
the 2016 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 2016 Annual Report, taken as a whole, is free from material
To the Directors and Officers of
misstatement.
Braskem S/A
São Paulo - SP
Introduction
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
We have been engaged by Braskem S/A (“Braskem”) to apply limited
2016 Annual Report and applying analytical procedures to obtain
assurance procedures on the sustainability information disclosed in
evidence that allows us to make a limited assurance conclusion
Braskem’s 2016 Annual Report, related to the year ended December
31st, 2016.
Responsibilities of Braskem’s Management
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 2016 Annual Report taken as
The management of Braskem is responsible for preparing and
a whole could present material misstatement.
adequately presenting the information in the 2016 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.
2016 | Braskem | Annual Report 109
The selected procedures were based on our understanding of the
Scope and limitations
issues related to the compilation, materiality and presentation of the
The procedures applied in a limited assurance engagement are
information disclosed in the 2016 Annual Report, other engagement
substantially less extensive than those applied in a reasonable
circumstances and considerations regarding areas and procedures
assurance engagement. Therefore, we cannot ensure we are aware
associated with the material sustainability information disclosed in
of all the issues that would have been identified in a reasonable
the 2016 Annual Report where material misstatement could exist.
assurance engagement, which aims to issue an opinion. If we had
The procedures consisted of:
conducted a reasonable assurance engagement, we may have
identified other issues and possible misstatements within the
(a) planning: consideration of the materiality of aspects to
information presented in the 2016 Annual Report.
Braskem’s activities, relevance of the information disclosed, amount
of quantitative and qualitative information and operational systems
Nonfinancial data is subject to more inherent limitations than
and internal controls that served as a basis for preparation of the
financial data, due to the nature and diversity of the methods
information in the 2016 Annual Report. This analysis defined the
used to determine, calculate or estimate this data. Qualitative
indicators to be tested in detail;
interpretations of the data’s materiality and accuracy are subject
(b) understanding and analysis of the information disclosed related
to individual presumptions and judgments. Additionally, we did
to the management of material aspects;
not examine data regarding prior periods to assess the adequacy
(c) analysis of processes for the preparation of the 2016 Annual
of policies, practices and sustainability performance, nor future
Report and its structure and content, based on the Principles
projections data.
for Defining Report Content and Quality of the Global Reporting
Initiative - GRI (GRI-G4);
Conclusion
(d) evaluation of indicators and other non-financial information:
Based on our review, nothing has come to our attention to
•
understanding the calculation methodology and procedures for
indicate that Braskem’s 2016 Annual Report is not presented, in all
the compilation of indicators through interviews with managers
material aspects, in accordance with the Global Reporting Initiative
responsible for preparing the information;
Sustainability Reporting Guidelines (GRI-G4), and with its source
•
application of analytical procedures on the quantitative information
records and files.
and questions about qualitative information and their correlation
with indicators disclosed in the 2016 Annual Report;
São Paulo, July 17th, 2017
•
•
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);
KPMG Assessores Ltda.
KPMG Financial Risk & Actuarial
(e) plausibility analysis of the reasons for omissions of performance
CRC 2SP034262/O-4 F-SP
Services Ltda.
indicators associated with topics and aspects identified as material
through the Company’s materiality assessment; and
We believe the information, evidence and results we have obtained
are sufficient and appropriate to provide a basis for our limited
Eduardo V. Cipullo
Ricardo Algis Zibas
conclusion.
Accountant CRC 1SP135597/O-6
2016 | Braskem | Annual Report 110
MACRO OBJECTIVES
Safety
To be among the benchmarks
in Chemical, Occupational, and
Process Safety in the Global
Chemical Industry.
SEMPRE: 99% of
industrial plants in stage 5
implementation
Accident rate with and without
lost time - 0.75 accidents/MM
Mhw;
Event rate Tier 1: 0.20 events/
MM Mhw
In 2016, this macro objective reached a level of progress of about 86% of the goal for 2020.
Occupational Safety
•
In the period from 2002 to 2016, the injury frequency rate w/o Lost Time (Saf) + w/ Lost Time (Caf),
•
•
•
•
and severity rate improved respectively 92.3%, 92.2%, and 36%.
A fatal accident occurred at the PE8 CUB-SP plant.
Fifteen industrial plants without record of lost time accidents (considering Members and Contractors) for
more than three years, ten of these for more than five years.
The percentage of plants in SEMPRE stages 4 and 5 increased from 13% to 46.7%.
Percentage of behavioral dialogues without deviation improved from 66% in 2015 to 80% in 2016. This
denotes a stronger culture of prevention through compliance with procedures.
Process Safety
•
Risk Rating: The number of industrial plants with above standard rating based on audits by insurance
companies has evolved from 12 to 15.
•
Nine TIER1 process accidents were recorded, 18% less than in 2015. The total cost avoided was BRL
17.1 million.
Chemical Safety
•
Updated the multi-year action plans to replace asbestos, HCFC22 (Hydrochlorofluorocarbon), and CCl4
(carbon tetrachloride);
Occupational Health
•
Recorded a new case of occupational illness due to depression.
Liquid, Paste, and Solid Waste
•
In the period from 2002 to 2016, the waste generation rate improved by 63%, representing a result
57% better than the national chemical industry average (Abiquim database, 2015).
2016 | Braskem | Annual Report
111
MACRO OBJECTIVE
2020 GOAL
ACTIONS IN 2016
Economic
Production capacity: capacity
Production Capacity
and financial results
of the 3rd largest 11,000 kt/yr.
•
The petrochemical complex in Mexico began operation in April and provided an increase in the capacity
To be among the top three
(2020) - LyondellBasell.
of Low Density Polyethylene (LDPE) of 1.05 million tons/year.
In 2016, this macro objective reached a level of progress of 73% of the goal for 2020.
thermoplastic resin producers
in the world and ensure
Investment Grade: maintain
EBITDA
profitability that sustains
the Investment Grade rating
•
Record EBITDA of BRL 11.5 billion in 2016.
business continuity while
of Moody’s, Fitch Rating, and
maintaining the Investment
Standard & Poor’s.
Investment Grade
Grade rating in the three major
international agencies.
• Maintained the investment grade assigned by two global risk rating agencies: Fitch Rating and Standard
& Poor’s. Downgraded by Moody’s in February 2016.
Post-consumer
To be one of the five largest
traders of PE and PP from
recycled content in the world,
among the petrochemical
companies producing
Polyolefins. To become an
important driver of the growth
of plastic recycling in Brazil,
helping achieve the goals
in the Sector Agreement on
Packaging.
In 2016, this macro objective reached a level of progress of 73% of the goal for 2020.
Wecycle Platform
•
Launched the first polypropylene and polyethylene resins made from fully recycled content. Combined
production volumes may reach 50 tons per month. The resins were developed within the Wecycle
platform, an initiative that seeks to recover plastic waste throughout the production chain.
Mechanical recycling rate:
28% in Brazil
•
Polypropylene resin WCL H 1003 BBM is produced from recycling big bags used in resin transport that
were discarded in the past. Nearly 120,000 big bags will be recycled annually, which should generate a
potential volume of 30 tons/month of post-consumer recycled resin. The new product may be applied
to household utilities, garden products, and lids. Tramontina is already testing and evaluating in which
applications of its gardening line the resin may be used.
•
Possible applications of WCL L004 SCV polyethylene resin are bags, laminated packaging, tarps, flexible
packaging, and tubes. It is produced from used and discarded bags at Braskem’s Distribution Centers.
The total volume of recycled resin may reach 20 tons/month in 2017, representing the monthly recycling
of approximately 200,000 bags.
2016 | Braskem | Annual Report
112
MACRO OBJECTIVE
2020 GOAL
ACTIONS IN 2016
Renewable resources
To be among the leading
producers of thermoplastic
chemicals and resins from
renewable raw materials.
Remain the world’s largest
producer of thermoplastic
Production capacity of
thermoplastic chemicals and
resins from renewable raw
materials: 230Kt/yr.
In 2016, this macro objective reached a level of progress of 78% of the goal for 2020.
Green PE
•
•
The production of Green PE has been modernized to further mitigate impact on the environment. With
investments of BRL 7.1 million from 2013 to 2015 to reduce CO2 emissions by 30%, new equipment was
installed to reduce losses, reducing fuel consumption by the generator; as well as a new effluent reuse
system, which will reuse effluents. After modernizing its production process, the updated Green PE Life
Cycle Assessment (LCA) was launched, which identified the capture of 2.78 tons of CO2e per ton of
product produced from sustainable resin, against 2.15 tCO2e/t identified in the previous study.
Green PE is the first product from the Brazilian petrochemical industry to receive carbon footprint
certification, an initiative that was born in the Technical Committee of the Industry Plan (CTPIn) and
the Ministry of Industry and Commerce (MDIC), which defines and guides actions for implementing
resins from renewable sources.
the National Policy on Climate Change in priority sectors. According to the measurement, made by
Carbon Trust and the Brazilian Association of Technical Standards (ABNT), the polyethylene from
renewable origin has a negative emissions footprint, that is, it helps to sequester polluting gas from the
atmosphere. The company voluntarily participated in the certification in order to provide transparency to
information to its client relations, and to promote the adoption of this practice.
In 2016, this macro-objective reached a level of progress of 96% of the goal for 2020.
Water Consumption
Water consumption rate (m³/t):
•
In the period from 2002 to 2016, the water consumption rate improved by 4.8%, the water reuse
average water consumption of
percentage improved by 38%, and the net effluent generation rate improved by 43%.
the global chemical industry
Water Efficiency
26.5 m³/t (2014)
•
Reduction in water consumption rate for the fourth consecutive year, reaching 3.93 m³/t. This is about
To be among the benchmarks
6.5 times better than the average for the global chemical industry (ICCA 2013 - 25.64m³/t).
in the use of water resources
Percentage of water reuse:
in the global chemical industry
2020: 25%
•
The net effluent generation rate reached 1.11m³/t, the best result since 2002.
in terms of water consumption
2025: 30%
and water reuse rates.
2030: 50%
•
Three process improvement initiatives were implemented in the UNIB1 BA, UNIB 2 RS, and UNIB 3 ABC
crackers for water recovery and reuse, totaling an annual savings of nearly BRL 2.5 million;
•
Completed study of four watersheds of a total of eight that will be studied. Results presented at
Abiquim’s 16th Congress of the Program called Atuação Responsável (Responsible Performance).
2016 | Braskem | Annual Report
113
MACRO OBJECTIVE
2020 GOAL
ACTIONS IN 2016
Climate Change
To be among the world’s best
major chemical companies in
intensity of greenhouse gas
(GHG) emissions, and to be
a major sequester of GHG
emissions due to the use of
renewable raw materials.
CO2 Emissions Intensity
(tCO2e/t): remain at 600Kg/t
In 2016, this macro-objective reached a level of progress of 93% of the target for 2020.
Greenhouse gas inventory:
•
Considering only Scope 1 emissions, directly managed by the Company, the total aggregate reduction
was about 9% compared to baseline year 2008 (without Mexico). Scopes 1 + 2 totaled a reduction of
18% (without Mexico).
CDP Investor
•
Braskem became the first Brazilian industry to join the A List of the CDP carbon program.
CDP Supply Chain
•
Braskem joined the A List of the CDP Supply Chain Program.
Climate Risk Management
•
The climate risk studies in Mexico were completed and the Braskem’s Adaptation Plan was designed in
Brazil, consolidating plans for the Northeast, Southeast, and South regions.
In 2016, this macro-objective reached a level of progress of 94% of the goal for 2020.
Energy Efficiency
To be among the best major
chemical industries in the
world in intensity of energy
consumption and to be a major
user of renewable energy
sources.
Energy consumption rate
(GJ/t): 10.82 GJ/t
Energy Consumption
•
In 2016, a total of 10.25 GJ of energy was consumed per ton produced, the best result since 2002,
representing an aggregate improvement of 14%.
% of renewable energy use:
•
Five initiatives were implemented to improve the energy efficiency of the process, totaling an annual
11%
savings of BRL 4.6 million.
•
Since 2002, approximately BRL 100 million has been invested to improve the efficiency of the electrical
system of crackers in the UNIB1 BA and UNIB2 RS against power outages (caused, for example, by
lightning striking Braskem’s external and/or internal electrical system).
2016 | Braskem | Annual Report
114
MACRO OBJECTIVE
2020 GOAL
ACTIONS IN 2016
Reputation Index (%):
“excellent” level in RepTrakTM
Pulse citizenship dimension (>
80%)
Leverage of private social
investments: 200% based on
annual budget
Local development
To achieve the “excellent”
reputation level in the
citizenship dimension of
RepTrak® Pulse, demonstrating
that it is recognized by the
community surrounding the
facility and by society at
large for its contribution to
the improvement of human
development.
In 2016, this macro-objective reached a level of progress of 88% of the goal for 2020.
In 2016, a total of BRL 27.5 million were invested in social and environmental projects, with emphasis on
private social investment projects:
•
Ser + Realizador: 3,444 waste collectors benefited and 813 recorded an increase in income.
•
Fábrica de Florestas Institute: produced 88,407 seedlings, planted 46,628, and 27,506 people received
sensitivity training.
•
Edukatu: the numbers have evolved significantly. The number of participants reached 28,441 people, the
number of teachers engaged increased to 1,084, and the number of students engaged
“Strong” reputation level
with Clients in the products
& services dimension of Deep
In 2016, this macro-objective reached a level of progress of 85% of the goal for 2020.
LCA studies
•
From 2011 to 2016, a total of 41 ACV and five Carbon Footprint studies were completed, identifying the
advantages and priority areas for product improvement.
Developing solutions
Dive: 70.0%
To be recognized as a company
that supports its clients in the
Rate of new projects
development of environmental
showing positive social and
and social solutions using
environmental impact: 233.2
Chemistry and Plastics,
kt/yr.
reaching a “strong” reputation
level through its products &
Number of LCA studies
services.
completed: 14
•
In 2016, the level of alignment of the project pipeline was 84%. Throughout the year, Braskem
completed a total of ten LCA studies, among which the Recycled Plastic Resins and Casa Clic stand out.
Braskem Labs
•
In its second edition, the program received 190 applications and selected 12 innovative proposals in the
areas of chemistry and plastic, and also to combat the Aedes aegypti mosquito.
•
The Eco Brasil Award, sponsored by the American Chamber of Commerce (AmCham) and the newspaper
O Estado de S.Paulo, recognized the Braskem Labs program as a winner in the Processes – Large
Companies category.
2016 | Braskem | Annual Report
115
MACRO OBJECTIVE
2020 GOAL
ACTIONS IN 2016
In 2016, this macro-objective reached a level of progress of 91% of the goal for 2020.
Diversity
•
Braskem was chosen among 200 companies in Brazil as one of the 10 best for women to work according
ISE Bovespa score: remain
to a survey conducted by Love Mondays (based on 12,000 interviews). Braskem’s diversity program
listed with a score equivalent
was reported to the People and Organization Committee (CPO), a support committee to the Board of
to the average between the
Directors (CA), demonstrating the strategic importance given to the topic.
Strengthening practices
portfolio benchmark and
ISE BM&FBovespa
To be among the business
the portfolio average DJSI
•
For the 12th consecutive time, Braskem was included in the ISE portfolio (Corporate Sustainability
benchmarks in Brazil for its
Emerging Markets Score.
Index), the sustainability index of BM&FBOVESPA of São Paulo.
contribution to Sustainable
DJSI Emerging Markets
Development. To be one of
Maintain a score equal to the
•
Braskem was listed for the fifth consecutive year in the Dow Jones Sustainability Emerging Markets
the global benchmarks in the
average of the world Chemical
Index (DJSI), the sustainability index for companies in emerging markets on the New York Stock
sector for its contribution in
Industry benchmark and the
Exchange (NYSE).
Sustainable Development.
first in the global industry
The Sustainability Yearbook
index.
•
For the third time, Braskem was included in The Sustainability Yearbook, a publication prepared by
RobecoSAM, an international investment consulting firm specializing in sustainability. The ranking lists
the 457 most sustainable companies in the world, with Braskem listed among the 19 leading companies
in the global chemical sector and among the 12 leading Brazilian companies (considering the 59 sectors
covered by the study). Additionally, in 2016, Braskem received the “Bronze” classification.
2016 | Braskem | Annual Report
Glossary
Biopolymer
Flare
all quotas does not exceed the
Raffia
Thermoplastic resin produced
Static mechanical safety
maximum fixed limit for the
Fibers used to manufacture
from renewable raw materials
equipment that is powered to
system. The cap is set to ensure
bags for transporting fruit or
Cap
Emission limit
burn chemical compounds that
that total system emissions are
small loads
the industrial plant will not
reduced from one period to the
be able to process. Burning
next. Trade is the trading of
Ramp-up
keeps hazardous compounds
permissions between participants
Term in economy and business
Cracker
from being released into the
- those who can reduce their
defining the initial stage of
Industrial plant where naphtha
atmosphere.
emissions further can sell their
industrial production
is processed into derivatives,
surplus permissions to those
such as ethylene, propylene,
Rotary clinker kilns
for whom reducing emissions
Risk rating (of processes)
and other co-products
Kilns to produce cement
is more expensive than buying
Process safety index
permissions from others. That is,
established by insurance
Cracking (naphtha)
Grade (Resin)
the trade mechanism allows the
companies
Breaking molecules for
Type, Specification
reduction sought by the group
ethylene production
to be achieved at the lowest
Second generation (in the
Eco-efficiency
The ratio between the use
Investment grade
Investment grade
possible cost.
petrochemical industry)
Second generation units,
Offsets
producers of intermediates and
of resources required to
Reverse logistics
Emission credits that may be
thermoplastic resins (PE, PP,
manufacture a given product
A set of actions, procedures,
traded in a cap&trade market.
and PVC)
and its production volume.
and means enabling the
They are generated by the
Expresses productivity from an
collection and restitution of
reduction of avoided emissions
Spread
environmental standpoint
solid waste in the business
or emissions in accredited
Margin (of profitability)
sector, for reuse in its cycle or
locations outside of market
Eco-indicators
in other production cycles, or
coverage (e.g. reforestation).
Tagalong
Environmental performance
for other destinations
These securities may be
Mechanism that gives minority
indicators
used as compensation by
shareholders the same rights
Cap&trad market
participants in a cap&trade
as controlling shareholders in
Grid factor
Cap & trade. A system composed
market who have exceeded
the event of sale or transfer
Average rate of GHG emissions
of several parts in which
their emission limit
of control. Under Brazilian law
resulting from generating electricity
emission quotas (permissions)
(Brazilian Corporate Law).
are established for each
p.p.
participant, so that the sum of
Percentage point
116
ACRONYMS
ABS: acrylonitrile-butadiene
styrene
GJ: Gigajoules
GPS: Global Product Strategy
KWh/t: kilowatt-hour per ton
kg/t: kg per ton
PE: Polyethylene
HDPE: High Density
Polyethylene
LDPE: Low Density
Polyethylene
LLDPE: Linear Low Density
Polyethylene
PP: Polypropylene
PVC: Polyvinylchloride
REACH: Registration,
Evaluation, Authorization and
Restriction of Chemicals
SAN: Styrene acrylonitrile
UNIB: Basic Petrochemicals
and Vinyls Unit
UNPOL: Polyolefins,
Renewables and Europe Unit
UTEC: ultra-high molecular
weight - Braskem’s brand
2016 | Braskem | Annual Report Corporate Information
BRAZIL
SOUTHEAST
UNIB 3 CK ABC
Avenida Presidente Costa e Silva, 1178,
Pq. Capuava – Santo André
ZIP CODE: 09270-901
Phone: +55 11 4478-1515
UNIB 3 IN ABC
Rua da União, 765, Jardim Sonia Maria
Mauá
ZIP CODE: 09380-900
Phone: +55 11 4977-2020
UN PE 7 ABC
Avenida Presidente Costa e Silva, 400,
Pq. Capuava – Santo André
ZIP CODE: 09270-000
Phone: +55 11 4478-4000
UN PP 4 ABC
Avenida Ayrton Senna da Silva, 2700,
Jardim Oratório – Mauá
ZIP CODE: 09380-901
Phone: +55 11 3583-2200
UN PE 8 CUB
Rodovia Cônego Domenico Rangoni,55, s/n
Km 266 – Pista Oeste
Cubatão
ZIP CODE: 11573-903
Phone: +55 13 3362-9001
UNIB 4 e PE 9 DCX
Rua Marumbi, 1001, Campos Elíseos
Duque de Caxias
ZIP CODE: 25221-000
Phone: +55 21 2187-8883
UN PP 5 DCX
Rua Marumbi, 1400, Campos Elíseos
Duque de Caxias
ZIP CODE: 25221-000
Phone: +55 21 2173-4100
UN PP 3 PLN
Avenida Wagner Samara, 1280,
Bairro Cascata, Paulínia
ZIP CODE: 13147-082
Phone: +55 19 3344-6700
SP Office - Headquarters
Rua Lemos Monteiro, 120,
Edifício Odebrecht, Butantã
ZIP CODE: 05501-050
Phone: +55 11 3576-9000
SP Office – Villa Lobos
Avenida das Nações Unidas, 4.777,
11º andar, Edifício Villa Lobos
Pinheiros
ZIP CODE: 05477-000
Phone: +55 11 3576-9000
117
SOUTH
UNIB 2 RS
BR 386, Rod. Tabaí / Canoas, km 419,
Via de Contorno, 850
Triunfo
ZIP CODE: 95853-000
Phone: +55 51 3457-6310
PP 1 RS
BR 386 KM 419 – III Polo Petroquímico,
Via Oeste – Lote 5
Triunfo
ZIP CODE: 95853-000
Phone: +55 51 3721-8161
PP 2 / PE 5 RS
BR 386 KM 419 Lote 4
Polo Petroquímico do Sul
Triunfo
ZIP CODE: 95853-000
Phone: +55 51-3457-5511
PE 4 RS
BR 386 – Rodovia Tabaí/Canoas – Km 419,
Via de Contorno, 1216
Polo Petroquímico, Triunfo
ZIP CODE: 95853-000
Phone: +55 51-3721-8661
2016 | Braskem | Annual Report PE 6 RS
PE 1 BA
Av. Av. Antônio Carlos Magalhães, 3244,
BR 386 – Rodovia Tabaí-Canoas –
Rua Eteno, 1582, Copec - Polo de Camaçari
Thomé de Souza, 20º andar
118
Km 419, Via de Contorno 1178 Polo Petroquímico,
Camaçari
ZIP CODE:42810-000
Phone: +55 71 3413 3711
Salvador
ZIP CODE: 41820-000
Phone: +55 71 3504-7932
Lote 29, Passo Raso, Triunfo
ZIP CODE: 95853-000
Phone: +55 51-3457-2351
RS Office
Av. Soledade, 550, 2º andar,
Petrópolis, Porto Alegre
ZIP CODE: 90470-340
Phone: +55 51 3216-2626
ALAGOAS
CS 1 AL
Avenida Assis Chateaubriand, 5260
Bairro Pontal da Barra, Maceió
ZIP CODE: 57010-900
Phone: +55 82 3177-5151
PVC 2 AL
Rodovia Divaldo Suruagy – Km 12 – Via II
Polo Industrial José Aprígio Vilela,
Marechal Deodoro
ZIP CODE: 57160-000
Phone: +55 82-3177-5412
Mining
Av . Major Cícero Góes Monteiro, 2889,
Mutange, Maceió
ZIP CODE: 57017-515
BAHIA
UNIB 1 BA
Rua Eteno, 1561, Copec-Polo de Camaçari
Camaçari
ZIP CODE: 42810-000
Phone: +55 71 3413-2200
PE 2 BA
Rua Hidrogênio, nº 3520, COPEC, Polo de Camaçari
UNITED STATES
Camaçari
ZIP CODE: 42810-280
Phone: +55 71 3413 3860
PVC 1 BA
Rua Hidrogênio, 3342, COPEC–Polo de Camaçari
Camaçari
ZIP CODE: 42810-280
Phone: +55 71 3413-2800
PE 3 BA
Rua Benzeno, 2391, COPEC - Polo de Camaçari
Camaçari
ZIP CODE:42810-020
Phone: +55 71 3413 4100
PP6-BA
Rua Hidrogênio, 1404 - Polo Industrial de Camaçari
Camaçari
ZIP Code: 42810-010
Phone: +55 71 3797 3865
Fax: +55 71 3632 2206
CS 2 BA
Rua Oxigênio, 765, COPEC - Polo de Camaçari
Camaçari
ZIP CODE:42810-270
Phone: +55 71 3413 3344
BA Office
Headquarters
1735 Market Street, 28th floor
PA 19103
Philadelphia
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
Marcus Hook Plant
750 West 10th Street
Marcus Hook, PA 19061
Neal Plant
200 Big Sandy Road
Kenova, WV 25530
Phone: +1 304 453-1371
Fax: +1 304 453-5916
Seadrift Plant
P.O. Box 105
Port Lavaca, TX 77979
Phone: +1 361 487-1100
Oyster Creek Plant
P.O. Box 2168
2016 | Braskem | Annual Report 119
COLOMBIA (office)
Braskem S.A. Sucursal Colombiana
Calle 93 - 11A - 28 - Oficina 302
Edificio Capital Park 93
Bogotá - Columbia
Phone +57 (1) 589-7074
CHILE (office)
Braskem Petroquímica Chile Ltda.
Nueva de Lyon Nº 145 - Oficina 1204
Edifício Costanera Lyon
Providencia - Santiago - Chile
Phone +56 (2) 2482-7000
NETHERLANDS (office)
Weena 200, 9Th floor Tower C
3012 NJ Rotterdam
The Netherlands
Phone +31 (10) 7985002
SINGAPORE (office)
8 Eu Tong Sen Street #22-89
The Central, 059818
Singapore
Phone: +65 6671 0431
Freeport, TX 77542
Phone: +1 979 705-2650
MEXICO
Technology and Innovation Center
550 Technology Drive
Pittsburgh, PA15219
Phone: +1 412 208-8100
Fax: +1 412 20-88205
Houston Office
5100 Westheimer Rd – Suite 495,
Houston, TX 77056
Phone: +1 713 255-4747 /
Fax: +1 713 255-4740
Pasadena Office
4949 Fairmont Parkway, Suite 101
Pasadena, TX 77505
Phone: +1 979 705-2650
GERMANY
An der Welle 3
60322 Frankfurt am Main
Phone: +49 69 427 299 200
PP 11 Wesseling
Werk Wesseling
Rodenkirchner Strasse 400
50389 Wesseling
Phone: 49 2232 705 356
PP 12 Schkopau
Werk Schkopau
PF 1163
06201 Merseburg
Phone: +49 3461 54 740 200
Braskem Idesa SAPI
Boulevard Manuel Avila Camacho 36, Piso 24
Col. Lomas de Chapultepec
CP 11000
México D.F
Coatzacoalcos Plant
Camino Petrolero El Chapo s/n, Km. 1.3
Col. Zona Industrial de Coatzacoalcos
Veracruz, Mexico
OTHER COUNTRIES
ARGENTINA (office)
Braskem Argentina S.A.
Carlos Pellegrini, 1149 - Piso 7º
C1009ABW
Ciudad Autónoma de Buenos Aires
Buenos Aires - Argentina
Phone +54 (11) 5275-6600
VENEZUELA (office)
Av. Río Caura – Torre Humboldt, Piso 19,
Oficina 1901, Urb. Prados del Este, 1080
Caracas
Phone: +58 (212) 976-5025
PERU (office)
Braskem S.A. Sucursal Perú
Av. Victor Andrés Belaunde, 280 - Oficina 603
San Isidro, Lima 27, Peru
Phone +57 (1) 442-4241
2016 | Braskem | Annual Report 120
G4-31
FOR MORE
INFORMATION ON
THIS REPORT,
PLEASE CONTACT
IMPRENSA@BRASKEM.COM.BR
Credits
Vice President of People, Business Communication,
Marketing, and Sustainable Development
Marcelo Arantes
Corporate Communication Director
André Vieira
Sustainable Development Director
Jorge Soto
External Communication Supervision
Carlos Eduardo dos Santos
Mariana Fernandes Cardoso
Sustainable Development Supervision
Mario Pino
Luiz Carlos Xavier
Vinício Salotti
Analysis of Indicators, Project Development, and
Content Production
Keyassociados
Graphic Design and Layout
Kite Estratégias Digitais
Assurance
KPMG
Photos
Braskem Collection
Translation
Gotcha! Idiomas
2016 | Braskem | Annual Report www.braskem.com