ANNUAL
REPORT
2017
< 2 >
A YEAR OF
TRANSFORMATION
In 2017, Braskem completed 15 years of a history full
of achievements and several challenges. Always with
an eye on the future, we have begun a new cycle. A
new stage that consolidates our innovative and peo-
ple-oriented way of working.
Although we are a young company, we have a sol-
id growth strategy and corporate responsibility that
allows us to continue to evolve as an important play-
er in the global petrochemical industry.
On the next pages, learn about our main projects
and results throughout the year, and see how we
work in a manner committed to sustainability, inno-
vation, and people development. 102-1
Enjoy your reading
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS HIGHLIGHTS FOR THE YEAR
Approval by the Board of
Directors of investments
of up to USD 675 million
for the construction of
the sixth Polypropylene
(PP) production unit
in La Porte, Texas.
Consolidated
EBITDA reached
BRL 12.3 billion, up 7%
over the previous year.
Approval of our
first human rights
violations risk matrix,
and its inclusion in the
corporate risk matrix,
monitored by our
executives and the
Board of Directors.
Record production
of Polyethylene,
Polypropylene,
Ethylene, Butadiene,
and Gasoline.
< 3 >
Start of operations of the
new Ultra-High-Molecular-
Weight Polyethylene
(UHMWPE) plant in the
United States.
Continuity of the process to
improve Corporate Governance
and to reinforce Compliance
initiatives through training,
internal and external audits,
assessment and monitoring
of risks and controls.
The Industrial
Complex in Mexico
completed its first
full calendar year of
operation with an
average occupation
rate of 88%.
Independent
Management
of the Ethics
Line Channel.
Braskem
completes
15 years.
Creation of three working
groups focused on each of
the fronts where we operate:
Gender, LGBT (Lesbian, Gay,
Bisexual and Transgender),
Race, and Ethnicity.
Implementation
of the Sustainable
Procurement Tool,
which incorporates
sustainability criteria
into the selection of
suppliers in procurement
processes.
Braskem Labs becomes
a platform with three
programs focused
on innovative and
sustainable business
acceleration.
Record net
income of
BRL 4 billion.
For the first time, we are part
of CDP WATER’s “A List” and
for the second time, of the
CDP CLIMATE’s A List, which
recognizes the best publicly traded
companies in the world regarding
environmental management.
Global Volunteer Program
with the participation
of over 359 Braskem
professionals from
Brazil, Mexico, and the
United States, and 497
outside volunteers.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 4 >
MESSAGE FROM
THE BUSINESS
LEADER 102-14
CREATE VALUE FOR ALL
GOVERNANCE AND COMPLIANCE
The year 2017 was a milestone for Braskem. Not only because
We continue to improve our global Compliance system
we completed 15 years of a history highlighted by many achieve-
in a meaningful and structured way, through various ac-
ments and learning opportunities, but also the beginning of a
tions and initiatives that are ethical, integral, and trans-
new growth cycle based on the desire to become an even more
global and influential company in the petrochemical industry.
We believe in the power of people and encourage en-
trepreneurship to guide our actions. With our way of doing
parent across the Company. In June 2017, our global
agreement concerning the operation Operação Lava
Jato, concluded in December, was finally approved, and
we continue to collaborate with the authorities.
things, we define our people-oriented, forward-looking posi-
Likewise, our governance has undergone improve-
tion, which cultivates solid relationships and creates value for
ments. Our Board of Directors has increased the num-
all, offering sustainable solutions from chemicals and plastic.
ber of independent members, with renowned market
These characteristics were shaped into a new visual identity,
celebrated on the company’s 15th anniversary.
experience and judgment capacity, to six out of a total
of eleven members.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 5 >
In a year marked by the
overcoming of challenges,
Braskem presented solid
results, posting a record net
income of BRL 4 billion
RECORD RESULTS, EFFICIENCY,
AND GLOBALIZATION
DA reached BRL 12.3 billion last year, up
compared with 2016, with record sales
ported by ship arrived at the port of
7% over the previous year. In US dollars,
of polyethylene. Braskem’s share in the
Aratu at the end of November, enabling
EBITDA reached a new historic level of
Brazilian market was 69% in 2017.
the first flex operation in Camaçari.
USD 3.9 billion, a growth of 17%.
In the North American and Euro-
An important endorsement of our
In 2017, Braskem repeated its excel-
pean markets, sales reached 2.1 million
strategy came from the Board of Di-
lent industrial performance, present-
tons of polypropylene, up 5% compared
rectors, which, in June, approved the
ing significant records in production
with 2016. In Mexico, polyethylene sales
construction of a new polypropylene
for some of its main products. The uti-
were 551,000 tons, and exports totaled
(PP) plant at the La Porte complex in
lization rate of the cat crackers in Brazil
418,000 tons, resulting in total sales of
Texas. With an investment of up to USD
The year 2017 demonstrated that we
was 94%, two percentage points high-
969,000 tons, an increase of 124%.
675 million, the project will add 450,000
are on the right track implementing
er than 2016, with record production of
In this scenario, net consolidated
tons per year of production, in line with
our geographic diversification strategy,
ethylene, butadiene, and gasoline.
revenue was BRL 49.3 billion, up 3% over
the search for a more diverse raw ma-
greater balance on the scale of raw ma-
Production of polyolefins in Brazil,
2016. Of this total, operations generat-
terial matrix and geographical expan-
terials, and the continuous search for
both polyethylene and polypropylene,
ed by international units and exports
sion in the Americas.
gains in operational efficiency. Our re-
also hit its highest historical mark. In the
from Brazil accounted for 47% of rev-
silience and ability to face diverse sce-
US and Europe, the utilization rate was
enue. In terms of dollars, Braskem’s net
narios have brought significant results
97%. In Mexico, the Industrial Complex
revenue was USD 15.4 billion, up 12%.
to all shareholders.
completed its first full calendar year in
From a strategic standpoint, the
In a year highlighted by overcoming
operation, and had an average occu-
year was highlighted by the completion
challenges, Braskem presented sound-
pancy rate of 88% in 2017.
of the raw material flexibility project for
ness in its 2017 results, posting a record
On the commercial side, sales of
producing up to 15% of ethylene us-
net income of BRL 4 billion, attributable
Braskem resins totaled 3.5 million tons
ing ethane as raw material at the pet-
to all shareholders. Consolidated EBIT-
in the Brazilian market, a 4% increase
rochemical plant in Bahia. Ethane im-
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 6 >
SOCIAL AND ENVIRONMENTAL
RESPONSIBILITY
OUTLOOK
We believe in responsible management.
companies in managing sustainable de-
Global demand
for petrochemical
From the beginning, we have been com-
velopment and gathers those with the
products continues to grow in a very
mitted to operating in accordance with
best indicators in economic efficiency,
healthy way, not only due to the com-
principles of sustainable development
environmental balance, social justice,
petitive advantages of these products
and, as a signatory to the United Nations
and corporate governance.
compared to other materials, but also
Global Compact since 2007, we active-
In 2017, we continued to evolve our
thanks to the relevant flow of innova-
ly participate in building the Sustainable
Diversity practices, with the forma-
tions that the industry has brought to
Development Goals, principles that in-
tion of three working groups focused
the markets. In Brazil, in the medium
volve compliance with human rights.
on each of the fronts where we oper-
and long term, the risk of the Brazilian
Our strategy is based on
the search for advances
in productivity and
competitiveness, with a focus
on operational efficiency
the global footprint and strengthening
Braskem’s image and reputation among
This commitment brought us sig-
ate: Gender, LGBTQIA (Lesbian, Gay,
economy’s performance remains due
its Members, Clients, Suppliers, Soci-
nificant internal achievements and ex-
Bisexual, Transgender, Queer, Intersex,
to the political uncertainties raising the
ety, and Investors, through advances in
ternal recognition in 2017. For the first
and Asexual), Race, and Ethnicity. We
country’s risk, especially given the lack
compliance, sustainability,
innovation,
time, we are part of CDP WATER’s “A
also defined our first risk matrix on vio-
of structural reforms. In addition, the
and people management.
List”, which recognizes the best publicly
lations of human rights, facilitating the
global petrochemical market could be
Finally, I would like to thank our Share-
traded companies in the world regarding
immediate inclusion of this aspect in
impacted by the trade war waged be-
holders for their trust in Braskem, as well
management of the use of this natural
the corporate risk matrix, monitored by
tween the United States and China.
as our Clients, since this partnership is
resource (water)─we were the only Bra-
our executives and the Board of Direc-
In this context, our strategy is based
one of the forces that motivates us to
zilian and Latin American company to
obtain the highest score in this ranking.
In addition, we once again confirmed
tors. Among the aspects addressed this
on the search for advances in productiv-
pursue the path of excellence. Mem-
year, we highlight our work with the lo-
ity and competitiveness, while focusing
bers, Partners, and Suppliers, I thank you
gistics, ethanol, and recycling chains for
on operational efficiency and cost lead-
for your dedication and competence, an
our participation in the 13th portfolio of
the protection and promotion of hu-
ership; in diversification of raw materials,
essential contribution to our achieve-
B3’s Corporate Sustainability Index (ISE),
man rights, as well as compliance and
increasing participation of gas and main-
ments and results, in favor of an ever
which recognizes Brazil’s publicly traded
corporate ethics in our relationships.
taining flexibility of assets; in expanding
more global Braskem.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS BRASKEM
CHEMISTRY THAT TRANSFORMS.
We are a global, people-oriented
company with a passion for service
and a clear vision for the future
< 7 >
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 8 >
15 years of
MAJOR
TRANSFORMATION
2002
The largest petrochemical company in the Americas, today we
are the fifth largest in the world in terms of production capac-
ity of thermoplastic resins (Polyethylene, Polypropylene, and
Polyvinyl Chloride) and basic petrochemicals (such as Ethylene,
Propylene, Butadiene, and others). Born from the integration
of Brazilian petrochemical assets, we have taken important
steps toward internationalization, and we are steadily advanc-
ing towards building a global company. This journey marked by
achievements was only made possible thanks to the dedication
and effort and the constant search for innovation through sus-
tainable solutions along our 15-year history. 102-2
Braskem is formed by the merge of six Odebrecht
Group companies and the Mariani Group, and
began its activities as the largest petrochemical
company in Latin America. In the same year,
its shares were listed on the São Paulo Stock
Exchange (currently B3) and New York (NYSE).
2006
2005
2004
2003
Braskem acquires Politeno
(third largest producer
of polyethylene in Brazil)
and launches the first
Brazilian thermoplastic
resin with nanotechnology,
confirming its position
as a leader in innovation
in the sector.
2007
The Company becomes part of the
Corporate Sustainability Index (ISE) of the
São Paulo Stock Exchange (currently B3).
Implementation of the
Braskem Innovation Program,
which encourages the
development of projects
with new technologies and
applications, and signing of
the Declaration on Cleaner
Production, part of the
United Nations Environment
Program (UNEP).
Braskem lists its shares on the Madrid Stock
Exchange and reaches the rank of Most Valued
Company on the New York Stock Exchange.
2008
2009
Launch of the project
to build a plant for the
production of Green
Polyethylene, Braskem’s
exclusive product made
from renewable sources
produced from sugarcane.
Inauguration of
the Paulínia (SP)
unit in partnership
with Petrobras, the
Company’s first
greenfield project.1
1 Term to determine the
investment in a company
still in its early stages
2012
2011
2010
In 10 years, Braskem
reaches 36 industrial
units and 7,600
Members. A PVC plant in
Marechal Deodoro (AL),
and a new butadiene
plant in Triunfo (RS)
were inaugurated.
Acquisition of two
plants in the United
States and two
in Germany for
the production of
Polypropylene.
2013
2014
2015
Laying of the foundation
stone of the Green
Polyethylene plant
in Triunfo (RS), and
formation of the
Braskem Idesa joint
venture to produce
Polyethylene in Mexico.
Acquisition of Quattor, start of
production of Green Polyethylene
on an industrial scale, and launch of
the I’m greenTM seal to be applied to
products that use the raw material
in its composition. The acquisition
of the polypropylene assets from
Sunoco Chemicals, in the United
States, initiates the company’s
internationalization process.
Braskem becomes part of the first
portfolio of the Dow Jones Sustainability
Index for emerging countries.
The Company is
chosen by the
American magazine
Fast Company as
one of the 50 most
innovative in the world.
Launch of Braskem Labs, a project to encourage
entrepreneurs to develop innovative solutions
for the plastics industry. First year as a sponsor
of the Brazilian Paralympic track team.
2017
2016
To celebrate its 15th anniversary, Braskem launches
its new visual identity. Reinforcing the continuity
of the petrochemicals global expansion cycle, the
new Ultra-High-Molecular-Weight Polyethylene
(UHMWPE) plant is inaugurated in La Porte, Texas.
Inauguration of the Braskem Idesa Petrochemical Complex in Mexico. In partnership with Made in Space, Braskem takes its Green Polyethylene to the International Space Station. In addition, the Company becomes the first Brazilian representative to join CDP Climates’ “A List”2. 2 CDP is an international organization that assesses best business practices against climate change
< 9 >
OUR WAY OF BEING BRASKEM
BRAND MANIFESTO
In 2017, Braskem completed 15 years of operation
as an increasingly global company and recogni-
What is the chemistry of change?
For us, it’s the combination of people who are
zed by clients in nearly 100 countries on all con-
passionate for the new and the unexpected. It is about
tinents. To reflect this new cycle, we adopted a
new visual identity.
This new identity expresses our values and
creating bonds and working together to improve lives.
We are Braskem, a human-oriented company with the
passion to transform. We are a team of believers, who
commitments to all our stakeholders. It repre-
share our knowledge to empower the ones around us.
sents a global, people-oriented company with a
passion for service and a clear vision for the fu-
ture. This is what allows us to create value with
our Clients, in order to improve people’s lives.
The design chosen contains important charac-
teristics for Braskem, such as resilience, focus,
and transparency. The symbol used resembles
the letter “B” and forms an arrow, also indicating
And we know that human connections are limitless.
As individuals, we are encouraged to think,
speak up and take action. As a team, we share
a spirit of collaboration and optimism. We are
committed to serve and to build strong ties
with our clients and all stakeholders.
Sustainability is at the core of our company.
It’s our way of generating real and positive
the Company strategy focused on the future.
transformation. For us, this is only possible
The colors blue and yellow represent aspects
with a bold, brave and bonding attitude, where
such as global scope, focus on sustainability,
and the strength of human relations.
Motivated to look toward the future with
the conviction that we must serve our market
with responsibility and competence, keeping
our inspiration high and our hearts open to the
challenges ahead.
relentless forward thinking is valued, always.
We understand our role in the world: To
challenge our market with responsibility and
competence, creating positive impacts for all.
Most importantly, we take pride in what we do, keeping
our inspiration up and our hearts open for the next
challenges. After all, this is the chemistry of change.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 10 >
MAP OF
OPERATIONS
GLOBAL PRESENCE 102-4, 102-6, 102-7
With an increasingly global performance, we have industri-
we serve several markets, including food packaging, civ-
al operations in four countries (Brazil, United States, Mexi-
il construction, industrial, retail, automotive, hygiene and
co, and Germany), as well as 16 regional offices in the main
cleaning, agribusiness, health, among other segments. Fol-
global economic centers that serve our Clients in over 100
lowing our commitment to sustainability and innovation, we
countries. The largest producer of thermoplastic resins
are also the main global manufacturer of biopolymers, with
(Polyethylene, Polypropylene, and Polyvinyl Chloride) in the
annual production capacity of 200,000 tons of I’m green™
Americas and producer of chemicals and basic petrochem-
Green Plastic, a Polyethylene produced from sugar cane
icals, such as ethylene, propene, butadiene, among others,
ethanol, a source that is 100% renewable.
16
regional
offices
Industrial
Units
Basic
Petrochemicals
PVC and
Chlorine Soda
Polyethylene
Polypropylene
PE + PP
GREEN PE
UTEC
Administrative
Offices
Administrative
Headquarters
Sales Offices
Innovation and
Technology
41 industrial
units
Operations in
4 countries
2
Holland
Germany
1
1
Clients in nearly
100 countries
4
1
4
1
7
1
5
1
4
1
Singapore
1
1
United States
Mexico
1
4
1
1
1
1
1
Venezuela
Colombia
Peru
Brazil
Chile
Argentina
1
1
1
3
7,713
members
Production of nearly
20 million tons
Consolidated net
income of
BRL 4.133
billion
www.braskem.com.br > Braskem-no-mundo
www.braskem.com.br > unidades-braskem
to view the addresses of our units worldwide
Braskem does not produce or market products derived
from genetically modified organisms (GMOs) or products
containing GMO ingredients, whether in Brazil or abroad.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
CRÉDITOS
< 11 >
BUSINESS
MODEL
Our
Resources
Activities
FINANCIAL
NET EQUITY OF
BRL 5.690 BILLION
BRL 2.3 BILLION
INVESTED
GROSS DEBT OF
USD 7.649 BILLION,
9% LESS THAN
THE PREVIOUS YEAR
NATURAL
CONSUMPTION OF
3.98 m³/t OF WATER
AND 10.56 GJ/T
OF ENERGY PER TON
PRODUCED
BRL 13.1 MILLION
INVESTED IN
ENVIRONMENTAL
PROJECTS
HUMAN
7,713 MEMBERS,
78% MEN AND 22% WOMEN
MORE THAN
BRL 21.2 MILLION
INVESTED IN TRAINING
INVESTMENT OF
BRL 99 MILLION IN
323 HEALTH AND
SAFETY PROJECTS
INTELLECTUAL
INVESTMENT OF
BRL 167.5 MILLION
IN INNOVATION
355 PROJECTS
TO DEVELOP NEW
PRODUCTS AND
PROCESSES
29 NEW PATENT
REQUESTS AND
83 EXTENSIONS
MANUFACTURED
41 INDUSTRIAL PLANTS,
TOTALING AN ANNUAL
PRODUCTION CAPACITY OF
RESINS AND CHEMICALS OF
21.101 MILLION TONS
83% OF THE INDUSTRIAL
UNITS IN STAGE 4
OF SEMPRE - ASSURED
PERFORMANCE IN HSE
SOCIAL
INVESTMENT OF
BRL 19.7 MILLION
IN 83 PROJECTS
IN THE COMMUNITIES
MORE THAN
856 PARTICIPANTS
IN THE PILOT PROJECT
OF THE GLOBAL
VOLUNTEER PROGRAM
COSTS
TOTAL COSTS OF
BRL 36.4 BILLION,
4% OVER 2016, IN RAW
MATERIALS, SALARIES
AND BENEFITS, SERVICES
AND OTHERS.
NAPHTHA
ETHANE/
PROPANE
CHEMICALS
AND VINYLS
UNIT
PVC
CAUSTIC SODA
ETHYLENE/PROPYLENE
POLYOLEFINS
UNITS
GREEN
ETHYLENE
POLYETHYLENE (PE)
POLYPROPYLENE (PP)
SUGARCANE
ETHANOL
RENEWABLES
UNIT
GREEN
POLYETHYLENE
REVENUE
NET REVENUE OF
BRL 49.3 BILLION,
A 3% GROWTH IN
RELATION TO THE
PREVIOUS YEAR
NEGATIVE
DIRECT EMISSIONS OF 10,182,558 tCO₂e
(SCOPE 1) AND INDIRECT EMISSIONS OF
1,072,713 tCO₂e (SCOPE 2) -
CARBON INTENSITY OF 0.573 tCO₂e/t
GENERATION OF 2.13 KG OF SOLID, LIQUID
AND PASTY WASTE PER TON PRODUCED
GENERATION OF 1.06 m³/t OF LIQUID EFFLUENTS
43 REPORTABLE ACCIDENTS, 14 OF WHICH WITH
LOST TIME AND 29 WITHOUT LOST TIME
6 TIER 1 AND 31 TIER 2
PROCESS ACCIDENTS RECORDED
IMPACTS
POSITIVE
138 SUPPLIERS ENGAGED IN
THE CLIMATE AND WATER SUPPLY PROGRAMS
MORE THAN 1,278 PICKERS BENEFITED,
35 ASSOCIATED COOPERATIVES AND 14,000 TONS
OF WASTE RECYCLED THROUGH SER+REALIZADOR
14 LIFE CYCLE ASSESSMENT STUDIES
25.7% WATER REUSE
35% REDUCTION IN TIER 1 ACCIDENT RATE
AND 18% IN TIER 2 ACCIDENT RATE
Creation
of value
INVESTORS /
SHAREHOLDERS
RECORD EBITDA OF BRL 12.3 BI,
7% OVER 2016
RECORD NET INCOME
OF BRL 4.1 BILLION
PROFIT OF BRL 5.1 PER SHARE
CLIENTS
MEMBERS
CIVIL SOCIETY
GLOBAL SALES VOLUME
OF 12.157 MILLION TONS,
CONSIDERING EXPORTS AND
INTERNAL MARKET
7,438 MEMBERS TRAINED
213 LEADERS TRAINED
IN DEVELOPMENT PROGRAMS
SHARE INCREASE
IN THE BRAZILIAN
MARKET TO 69%
1.7% VOLUNTARY
TERMINATION RATE,
THE SMALLEST IN
THE LAST FOUR YEARS
MORE THAN 144,000
PEOPLE BENEFITED
BY COMMUNITY PROJECTS
1,222 ACTIONS AND
18,786 ITEMS COLLECTED
THROUGH THE PILOT
PROJECT OF THE GLOBAL
VOLUNTEER PROGRAM
CRÉDITOS
Strategy for Sustainable Development
We believe that sustainable development should be
with the evolution of the goals on the next page) and
a goal that is in line with business strategy. Therefore,
projects aligned with the Sustainable Development
we seek innovative solutions that interact with our
Goals (ODS), defined by the United Nations (UN) in
vision of growth, creating value for our operations,
2015. As a member of the Brazilian Network of the
increasing the reputation of our brand and – most
UN Global Compact, the Company made an active
importantly – continuously minimizing any environ-
contribution to the construction of Sustainable De-
mental and social impacts caused by our activities.
velopment Goals (ODS).
Since 2002, when we started our activities, we
Our sustainability principles, incorporated into
have already invested approximately BRL 500 mil-
the operational and manufacturing processes of
lion in improving water, energy and operational effi-
the Company’s products, also extend to projects
ciency of our production units and strengthened our
carried out outside the company. These initiatives
commitment to economic growth, environmental
are conducted as part of voluntary commitments
preservation and social justice.
established by the Company and materialized
Within our vision of “improving people’s lives by
through participation in forums and associations to
creating sustainable solutions
in chemistry and
streamline the process to transition to a competi-
plastic,” we work with challenging goals set out in our
10 sustainable development macro goals (see chart
tive, responsible and inclusive low-carbon economy.
102-12, 102-13
< 12 >
Human Rights
Human rights are basic rights inherent to all human beings, regardless of their
gender identity, sexual orientation, race, nationality, social strata, religion, physi-
cal characteristics, or any other condition. According to the Universal Declaration
of Human Rights, these rights include the right to life, liberty, freedom of speech
and expression, the right to work and to education, the right to well-being, among
many others. Consequently, they are not only social. Rights can be civil, political,
economic, cultural, and even environmental.
We adopt internationally recognized human rights as the base for our sustain-
able development and we respect these rights in developing our business, includ-
ing direct operations, joint ventures, and the value chain. This commitment is in
line with the United Nations Guiding Principles on Businesses and Human Rights.
Respect and advocacy for human rights are responsibilities of all our Mem-
bers and business partners, who must identify, prevent, and proactively mitigate
the exposure to risks of violating human rights, in addition to remediating current
impacts resulting from our operations, products, or from our business relations,
pursuant to the code of conduct and guidelines approved, respectively, by the
Board of Directors and the Executive Board.
Based on our risk matrix for violation of human rights, approved in 2017, our
operations and those of our business partners can impact human rights. There-
fore, Human Rights and their impacts will permeate the various sections of this
report, in benefit of Compliance, Diversity, Health, Safety, Work Conditions, Envi-
ronment, Post Consumption, Well-Being, and Local Traditions, among others. You
can identify specific cases through the icon.
To learn more about the initiatives in which we participate and about our voluntary commitments,
visit www.braskem.com.br/voluntary-commitments
For more information, visit
www.braskem.com.br/human-rights
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 13 >
Macro Goals
for sustainable
development
SUSTAINABILITY ALIGNED
WITH THE BUSINESS 102-12
Since our foundation, we have sought to align our
growth strategy with processes and actions that
minimize possible environmental and social impacts.
With a focus on developing a sustainability strate-
gy, we work with ten macro goals and targets set for
2020 - all linked to UN’s 17 Sustainable Development
Goals (ODS). Based on a correlation process, 79 con-
crete contributions were identified in five goals most
positively impacted by Braskem:
6
9
11
2020 GOAL
SAFETY
ECONOMIC
AND FINANCIAL RESULTS
POST CONSUMPTION
LOCAL DEVELOPMENT
WATER EFFICIENCY
To be among the benchmarks in chem-
icals, occupational, and process safety
in the Global chemical Industry.
To be among the top three thermo-
plastic resin producers in the world and
ensure profitability that sustains busi-
ness continuity while maintaining the
Investment Grade rating in the three
major international agencies.
To be one of the five largest traders
of PE and PP with recycled content
in the world, among the petrochem-
ical companies producing Polyolefins.
And to become an important driver
of growth of plastic recycling in Brazil,
helping achieve the goals in the Sector
Agreement on Packaging.
To achieve the “excellent” reputation
level in the Citizenship Dimension of
RepTrak® Pulse, demonstrating that
the Company is recognized by the
community surrounding the facility
and by society at large for its contri-
bution to the improvement of human
development.
To be among the benchmarks in the
use of water resources in the glob-
al chemical industry in terms of water
consumption and water reuse.
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
2015
2016
2017
2020
83%
99%
98%
100%
2015
2016
2017
2020
85%
73%
73%
100%
2015
2016
2017
2020
1%
1%
1%
100%
2015
2016
2017
2020
78%
86%
81%
100%
2015
2016
2017
2020
100%
96%
100%
100%
CLIMATE CHANGE
DEVELOPMENT OF SOLUTIONS
STRENGTHENING PRACTICES
RENEWABLE RESOURCES
ENERGY EFFICIENCY
Clean Water
and Sanitation
Industry,
Innovation, and
Infrastructure
Sustainable
Cities and
Communities
12
13
To be among the world’s best large
chemical companies in intensity of
Greenhouse Gas (GHG) emissions
while maintaining the use of renew-
able raw materials.
To be recognized as a company that
supports its clients in the development
of environmental and social solutions
using Chemistry and Plastics, reaching
a “strong” reputation level through its
products & services.
To be among the business bench-
marks in Brazil for its contribution to
Sustainable Development. And as one
of the global benchmarks in the sec-
tor for its contribution to Sustainable
Development.
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 renew-
able sources.
To be among the best large chemical
industries in the world in intensity of
energy consumption and to be a major
user of renewable energy sources.
Responsible
Consumption
and Production
Climate
Change
www.braskem.com.br/sustainable-strategy
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
% OF THE GOALS ACHIEVED
2015
2016
2017
2020
99%
93%
100%
100%
2015
2016
2017
2020
84%
85%
91%
100%
2015
2016
2017
2020
87%
91%
94%
100%
2015
2016
2017
2020
82%
82%
82%
100%
2015
2016
2017
2020
85%
84%
85%
100%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 14 >
GOVERNANCE
AND COMPLIANCE
TRANSPARENCY AND RESPONSIBILITY
For us, integrity and safety are at the heart of a
valued, competitive, and successful company.
These are principles that guarantee the perpetuity
of the business and our reputation in the market.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS For Corporate Governance and Compliance, the year was highlight-
For us, working in accordance with applicable laws, reg-
ed by the consolidation of several initiatives focused on upgrading
ulations, policies and best practices became a fundamental
and improving processes. After the approval of the Compliance Pol-
principle. For Braskem, effective compliance represents an
icy by the Board of Directors, in 2016, we have been implementing a
solid Compliance System, defining several policies and procedures,
intangible asset in the protection and strengthening of the
Business. 102-16
improvements in risk management, reinforcement of compliance,
internal audits, adoption of internal controls, communication and
training initiatives focused on continuous improvement that guide
Our Code of Conduct is translated into all the languages of the
our ethical, integral and transparent operation.
countries where Braskem operates, and can be viewed on the
Company’s intranet and website (www.braskem.com).
COMMITMENT
GLOBAL TRAINING ON
THE CODE OF CONDUCT
In just one year, we increased by 23% our performance in the
In 2017, we strengthened our awareness of our Compliance
integrity indicators defined and measured by Instituto Ethos,
Policy and globally carried out our online training on the Code
demonstrating our commitment to improving our practices and
of Conduct.
managing our business in a sustainable and responsible manner.
< 15 >
Independent Board of Directors
In June 2017, three new independent Board
Members were elected to join the Compa-
ny’s Board of Directors. With this change,
today the group consists of six independent
members with renowned experience in the
market out of a total of 11 Members. Since
2015, Braskem’s Board of Directors formed
by professionals with renowned experi-
ence in the market and in aspects related
to strategy and corporate governance ex-
ceeds 90%.
To learn about the structure of our Board
To
learn more about our structure, principles, and
and Departments, visit www.braskem-ri.
Corporate Governance model, visit www.braskem.com.br/
com.br/councils-and-board
corporate-governance or our Investor Relations website at
www.braskem.com.br/corporate-governance 102-18, 102-23
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 16 >
STRENGTHENING 103-2, 103-3
Reporting directly to the Board of Directors since its cre-
The commitment of the area is to disseminate the culture
ation in the first half of 2016, our Compliance Department is
of compliance across the company, whether through online
formed by four areas ─ Internal Controls, Risk Management,
or classroom training, workshops, engagement campaigns
Compliance, and Internal Audit. Compared with the previ-
among other initiatives. After training senior management
ous year, the department reinforced its personnel structure.
in 2016, the process to disseminate policies, guidelines, and
In addition to relying on people responsible for Compliance
other information across Braskem was the main focus of ac-
for the United States, Europe, and Mexico, the department
tivities in 2017. One of the highlights was the mandatory re-
tripled the number of professionals in our team, going from
quirement for 100% of the Members to retake the training
eight (in 2016) to 27 members.
course on the Code of Conduct.
COMPLIANCE
STRUCTURE
2016: 8 Members
in Brazil also catering to
the needs of local plants
2017: 27 people
from 5 different nationalities,
which favors diversity, reinforces this
topic in each location where we operate,
and gives it global dimension.
SPECIFIC
TRAINING
9 classroom training courses and
303 Members trained
TRAINING ON ETHICS, INTEGRITY,
AND TRANSPARENCY3
5 classroom training courses and
246 Members trained
3 This training began in 2016 and was completed in 2017.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS
< 17 >
COMPLIANCE MEASURES 103-2, 103-3
With ten structured measures in the Prevention, Detec-
put the Program into practice and completed 81 of these
tion, and Remediation pillars, in 2016 we developed a robust
initiatives. In all, 119 initiatives have already finished. The
Compliance Improvement Program, comprised of 162 ini-
remaining medium- and low-priority projects will be ad-
tiatives to improve the environment. Throughout 2017, we
dressed throughout 2018.
2
4
Main
deliveries
in 2017
1
Compliance
Governance
• Hiring Compliance Officers for Mexico,
United States, and Europe
• Structuring the Compliance area in
Mexico and the United States
• Electing three new independent
Members to the Board of Directors
Policies and other guidelines
• Global implementation of the Code of
Conduct and Compliance Policy
• Guideline and procedures for assessment and
approval of suppliers and relationship with public
agents in Brazil, Mexico, and the United States
• Tool for recording interactions with public agents and
receiving gifts in Brazil, Mexico, and the United States
• Guideline and procedure for donations, sponsorships, gifts, and
expenses, with representation in Brazil, Mexico, and the United States
• Creation of the Global Internal Audit
and Internal Control Guidelines
3
Risk Assessment
and Controls
• Enterprise Risk
Assessment carried out
Communication and Training
• Training on the Code of Conduct in Brazil,
the United States, and Mexico
• Global Dissemination of the
10 commitments to Ethics, Integrity,
and Transparency
• Global Survey on Perception of Compliance
• Classroom training of all areas with greater
exposure to compliance risks
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS 5
Third-party
Compliance
• Implementation of the Due
Diligence Process with the
assessment of over 2,000
Suppliers in Brazil, including
aspects of integrity, with
criteria such as political ties,
adverse media, restrictive
lists, litigation, and conflicts
of interest, in the constant
search for transparency
in our relationships.
6
Engagement
in Collective
Actions
• Alignment with
key stakeholders for
Engagement in Compliance
Actions and Initiatives
• Participation as a formal
member in initiatives of
the Global Compact and
the Ethos Institute
7
Management
of the Ethics
Line Channel
• Migration of the internal
reporting channel to a
new professionalized
and outsourced tool
• Complete analysis of
the backlog of claims
from 2015 and 2016
8
Monitoring of Risks
and Controls
• Implementation and monitoring
of new Risk Indicators
• Carrying out the work foreseen
in the Global Internal Audit Plan
• Implementation of tool for monitoring
Corporate Credit Card expenses
• Implementation of a regular audit
process for donations and sponsorships
9
Addressing Risk
and Strengthening
Controls
• Implementation of
recommendations proposed
by external auditors
• Remediation of vulnerabilities
identified in internal investigation
• Creation of new internal
controls and rationalization
of existing ones
< 18 >
10
Disciplinary
Measures
• Creation of a
Global Guideline on
Disciplinary Measures
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 19 >
Commitment
In addition to its internal policies, Braskem is a mem-
In 2016, this work focused on assessing compliance risks,
and effectiveness. Its main responsibilities are to ensure
ber of the UN Global Compact, and participates in the
and managed to globally identify priority areas with greater
that activities and processes are in compliance with our
Anti-Corruption Working Group of the Brazil Network
exposure and, consequently, apply the necessary mitigation
internal policies and external regulatory standards, inde-
of the Global Compact, and is a member of the Ethos
measures. In 2017, the work gained a new dimension by in-
pendent verification of the effectiveness of the controls,
Institute’s Corporate Pact for Integrity and Against
corporating, in a more structured way, the strategic, financial,
proposing improvements, support Braskem’s risk manage-
Corruption, participating in the Integrity Working
and operational risks, in addition to the regulatory risks evalu-
ment, and identify the opportunity to reduce costs and
Group. In these groups, Braskem follows bills regard-
ated in the previous year.
gain efficiency.
ing the fight against corruption and other changes.
In 2017, the Compliance area promoted 88 risk assess-
Establishing internal audit processes is among the vari-
RISK ASSESSMENT
In our review of Compliance processes, efforts were made to
ment workshops conducted globally, involving 234 leaders
ous actions structured to strengthen our governance prac-
in work to identify, analyze, and prioritize risks. In addition,
we defined heat maps4 and ranking of priority risks for each
business area, in each region, and a consolidated, global view
tices. With the first global plan approved in December 2016,
we turned our attention to improving controls through 13
projects in all locations.
establish a robust Risk Management procedure to identify,
of Braskem’s priority risks.
understand, and respond to risks that could impact the Com-
With these views, it is possible to work in a structured way
pany’s strategic goals. This new process ensures that decision
to prevent the materialization of risks, and help organize the
REVISED DOCUMENTATION
To bring even greater agility and transparency, and
makers have timely access to sufficient information, increas-
redirection of the Crisis Management process and build Busi-
strengthen the reliability of our processes, we reformu-
ing the likelihood of reaching their goals and reducing risks to
ness Continuity Plans.
acceptable levels. It also seeks to preserve the shareholders’
tangible and intangible assets, the safety of people, and the
integrity of the environment and communities by improving
INTERNAL AUDIT
Our Internal Audit area is focused on increasing and pro-
lated Braskem’s documentation structure. We began re-
viewing approximately 150 documents, including Policies,
Procedures, and Guidelines. This company-wide initiative,
involving several areas, also includes an improvement proj-
decision-making processes and properly handling risks and
tecting organizational value, providing independent and
ect for the online tool where all of the Company’s norma-
negative impacts arising from their occurrence.
objective assessment of processes, verifying compliance
tive documentation is archived.
4 Representation of data in the form of a map or diagram where data values are shown as colors.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS
< 20 >
WHO IS RESPONSIBLE FOR ENSURING COMPLIANCE AT BRASKEM?
RESPONSIBILITY OF ALL
In order to understand the Members’ view regarding concepts of
Compliance, as well as their understanding of the Company’s poli-
cies, we conducted a global internal survey from March to May 2017,
which was attended by over 2,800 Members from Brazil, the Unit-
ed States, Mexico, and Germany. The survey also sought to give us
a more realistic view of team expectations, building processes and
communication channels based on the opportunities identified. In
early 2018, we conducted a new survey to evaluate the results of the
actions implemented in 2017, with data that will help us verify new
needs for improvement.
2018*
Base: 4,024
All
Members
All
Leaders
Area responsible
for Compliance
Business
Leader (CEO)
Board of
Directors
Other
Don’t know/
Did not answer
95.2%
1.7%
1.6%
0.8%
0.4%
0,4%
0,1%
* The results refer to the 2017 initiatives.
WHAT ARE THE TOP THREE PRIORITIES OF THE COMPLIANCE AREA?
Disseminate the
culture of ethics,
integrity and
transparency
Objectively
evaluate
compliance with
Policies and
Procedures
Support in adjusting
the company’s
internal control
environment
Support in risk
assessment
and integrated
monitoring
Independently
report to the
Board
Other
Don’t know/
Did not answer
2018
Base: 4,024
85.3%
71.2%
61.4%
44.4%
19.6%
2.0%
0.5%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 21 >
NEW ETHICS LINE CHANNEL 102-17, 103-2, 103-3, 406-1
Going forward with the plans to advance the reporting chan-
This modernization also allows us to contact the person ─
nel, we launched our Ethics Line Channel to provide all our
anonymously ─ if further clarification is needed on the case.
audiences with even more secure communication for re-
In addition, a new procedure of handling complaints and test
porting behaviors deemed unethical. With the outsourcing
protocols by subject were developed in order to make the
of this service, and a new independent team trained to re-
ceive and assess reports received5, we have made the chan-
nel more professional, effective, impartial, and credible. In-
work more robust and more reliable.
In 2017, the cases investigated were presented during
the five meetings of the Ethics Committee. Specific cas-
ternally, our Compliance team assumed the responsibility
es of greater relevance were presented at the meetings of
for investigating the reports registered on the channel.
the Compliance Committee. Due to the internal commu-
In operation since April 2017, all incoming calls are an-
nication actions on the new Ethics Line Channel, we had a
swered personally and with more personal treatment, with-
out the use of recordings. In addition to the online channel,
telephone service is available 24x7, and is conducted in each
record number of cases filed, jumping from 107 in 2016 to
177 in 2017. In addition, of the investigations closed in 2017,
23% were considered to be unfounded, and 77% were con-
country’s language (Brazil, USA, and Mexico), with the ex-
sidered to be founded, of which 25 reparatory measures
ception of Germany, where reports are received in English.
were recommended by Compliance. Of the reports filed in
All reports are given a call number so that the complainant
2017, 64% of the complainants were anonymous and 36%
can follow the progress of the analysis until it is complete.
identified themselves.
5 The ICTS partner company is now responsible for managing the first report from
complainants. Learn more at www.icts.com.br (in Portuguese).
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Main results of the Ethics Line Channel in 2017
Of the cases opened
in periods prior to 2017,
a total of 48 had their
investigations closed
in
the year.
These cases were presented during the 5 meetings of the Ethics Committee in 2017.
11 cases were considered to be founded (magnifying glass on Human Rights*:
2 mobbing cases in Brazil), which resulted in the following reparatory measures:
- 2 terminations of Members.
- 3 formal warnings.
- 2 creations/adjustments of controls.
177 cases opened in 2017
Of these, 88 were analyzed in 2017, pointing out that all cases are always presented at
meetings of the Ethics Committee.
20 cases were considered to be founded (magnifying glass on Human Rights*: 1 case of
abuse of power, 1 of discrimination, 1 of sexual harassment and 2 of mobbing in Brazil,
and 1 of mobbing in Mexico). As a result of the cases deemed to be founded, the follow-
ing reparatory measures were indicated by Compliance:
- 1 terminations of Members
- 3 creations/adjustments of controls
- 5 oral warnings/feedbacks
- 3 Partner employees dismissed
- 1 cancellation of contract with Partner
64 cases opened in 2017
began the year 2018 under
investigation.
Of the 64 cases from 2017 that began the year 2018 under investigation (magnifying
glass on Human Rights*: 7 are cases of harassment in Brazil and Mexico). The last meet-
ing in 2017 was held on 10/31/2017. All actions after that date will be disclosed in the
2018 Annual Report.
Support to victims: Braskem has improved its performance in benefit of victims. In 2017, for example, we had a case
of threat to a Member who received personal security services hired by the company until this person’s workplace was
changed to another state in Brazil.
* Focus on cases of discrimination, harassment, and abuse of power.
< 22 >
Braskem Ethics Line
The reports may be made any day and
time through a toll-free number or via
the Internet, on the Ethics Line Channel:
• www.linhadeeticabraskem.com
• Brazil: 0800 377 8021
• Mexico: 01 800 681 6940
• USA: 1 800 950 9280
• Germany: 0800 183 0763
• Holland: 0800 022 7714
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 23 >
BUSINESS
PERFORMANCE
RECORD RESULT IN A
CHALLENGING SCENARIO
We demonstrated our resilience
and ability to face diverse
scenarios, bringing significant
results to all shareholders.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 24 >
In 2017, we repeated our excellent in-
competitiveness, and Governance and
sured by the Net Debt/EBITDA ratio
by the three major risk classification
dustrial performance, presenting sig-
Compliance standards.
in dollars was 1.91x at the end of 2017.
agencies (S&P, Fitch, and Moody’s).
nificant production records of some of
This advancement can be explained
Braskem retained its investment grade
The reports are available on the Inves-
our main products.
mainly by the higher volume of sales
by Standard & Poor’s (BBB) and by Fitch
tor Relations website www.braskem-ri.
Despite the many challenges, we
in Mexico due to the higher spreads
Ratings (BBB) and above sovereign risk
com.br. 102-9, 201-1, 103-2, 103-3
ended 2017 with a record EBITDA both
in the international chemicals mar-
in terms of Brazilian reais and US dol-
ket, expanded capacity, and increase
lars: BRL 12.334 billion and USD 3.872
in sales volume from the units in the
billion, representing, respectively, an
United States and Europe, due to the
increase of 7% and 17% compared with
higher volume of sales in the Brazilian
the previous year. A result that has
market and the capital gain of USD 88
been achieved due to our strategy fo-
million from the disposal of quantiQ.
cused on international presence, di-
In the year, the Company’s free cash
versifying raw materials, constant im-
generation was BRL 2.46 billion, up 9%
provement of operational efficiency,
from 2016. Corporate leverage mea-
In 2017, Braskem recorded consolidated
net income of BRL 4.133 billion.
Reinforcing the Company’s global presence,
47% of our consolidated net revenue (ex-
resale of naphtha and condensate) was
generated in international markets.
NET INCOME 2017*
Mexico
USA/Europe
7%
20%
Exports
Brazil
19%
Brazilian
Market
53%
Vinyls
Polyolefins
3%
61%
Chemicals
37%
Exports
Brazil
Other
Mercosur
58%
42%
Resin
Exports
*Does not consider revenue from resale of naphtha and condensate.
Vinyls
11%
Polyolefins
53%
Chemicals
36%
Brazilian
Market
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 25 >
VALUE ADDED STATEMENT (VAS)
Our global performance allowed for, at the end of 2017, a total value-added distributed of over
BRL 14.5 BRL million. This total, 38% higher than the previous year, reflects our contribution to
the economy of the locations where we operate and our financial return to society.
STATEMENT OF VALUE ADDED (all amounts in thousands of reais)
CONSOLIDATED
PARENT COMPANY
Revenues
Sales of goods, products and services
Other (expenses) revenues, net
Provisions for credits of doubtful debtors
2017
58,000,752
57,958,099
1,202
41,451
2016
ADJUSTED
52,429,423
55,930,688
(3,437,060)
(64,205)
Inputs acquired from third parties
(41,147,077)
(39,909,905)
Costs of products, goods and services sold
(38,845,377)
(37,802,247)
2017
45,303,874
45,351,039
(82,722)
35,557
(34,116,843)
(32,523,499)
2016
ADJUSTED
39,775,501
42,711,853
(2,867,482)
(68,870)
(31,662,604)
(30,222,548)
Materials, energy, third-party services, and other
Loss of asset values
Gross value added
(2,237,835)
(63,865)
16,853,675
(2,019,390)
(1,539,920)
(1,353,186)
(88,268)
12,519,518
(53,424)
11,187,031
(86,870)
8,112,897
Depreciation, amortization, and depletion
(2,928,855)
(2,683,100)
(1,880,065)
(2,052,972)
Net value added produced by the Company
13,924,820
9,836,418
9,306,966
6,059,925
Value added received in transfer
Equity income
Financial income
Other
652,527
48,832
603,630
65
720,407
30,078
690,122
207
2,996,197
2,450,872
545,262
63
1,618,945
986,493
632,452
Total value added for distribution
14,577,347
10,556,825
12,303,163
7,678,870
Personnel
Direct remuneration
Benefits
FGTS (government severance fund)
Taxes, fees and contributions
Federal
State
Municipal
Remuneration of third-party capital
Financial expenses (exchange rate variation)
Leases
Remuneration of own capital
Retained earnings in the accounting period
Dividends
Non-controlling shareholding interest in subsidiaries
Results from discontinued operations
1,421,214
1,147,158
212,815
61,241
4,232,072
2,214,611
1,995,068
22,393
4,790,740
4,545,979
244,761
4,133,321
3,074,114
1,000,000
50,331
8,876
1,267,513
986,940
218,110
62,463
3,018,046
1,288,179
1,703,249
26,618
7,000,463
6,755,962
244,501
(729,197)
(438,331)
(17,725)
26,859
1,018,832
801,083
154,876
62,873
3,511,778
1,569,651
1,928,530
13,597
3,689,563
3,487,287
202,276
4,082,990
3,074,114
1,000,000
765,684
564,067
140,879
60,738
2,246,826
732,051
1,502,420
12,355
5,077,832
4,888,738
189,094
(411,472)
(442,430)
8,876
30,958
Total value added distributed
14,577,347
10,556,825
12,303,163
7,678,870
For more information about the financial statements presented, including the financial entities
considered in the consolidated numbers, visit: www.braskem-ri.com.br/annual-reports 102-45
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 26 >
STEPS TO GLOBALIZATION
As part of the evolution of Braskem’s position,
and focused on operating as an increasing-
ly global company, in 2017 we changed the no-
menclature of our Business Units and adopted
a language more consistent with the market.
The purpose of this initiative is to facilitate the
understanding of each of our segments of op-
eration, informing about the products and geo-
graphic reach of each Unit.
• Basic Petrochemicals and Vinyls Unit: now
called the Chemicals and Vinyls Unit (formed by
the Small Chemicals and Vinyls Companies)
• Polyolefins, Renewables, and Europe Unit:
new Polyolefins Unit South America and Eu-
rope (formed by the Small Companies of Poly-
ethylene South America, Polypropylene South
America, Renewables, Polyolefins Exports, and
Polyolefins Europe).
• North America Unit: becomes Polyolefins
Unit North America (includes the Small Com-
panies Polypropylene North America, UTEC, and
Braskem Idesa).
BRAZIL
The gradual recovery of the economy and GDP growth in 2017
have already brought positive results for the industrial activ-
ities in Brazil, and consumption recovery due to the increase
in purchasing power of families. In line with this market ex-
pansion, we had a total sales volume of 3.486 million tons in
the year, with increase in market share of PE, PP, and PVC to
69% and an EBITDA of BRL 8.675 billion.
Demand for resins in the Brazilian market reached 5.1
million tons, 4% higher than in 2016, due to the higher level
of activity, mainly in the packaging, automotive, agriculture,
retail, and electronics sectors. Our sales volume in the Bra-
zilian market totaled 3.5 million tons, 4% more than in 2016.
We highlight the sales of PE in Brazil, which increased by
5%, the Company’s record. Resins exports totaled 1.5 million
tons, 11% below 2016, due to prioritizing the Brazilian mar-
ket, given the higher demand.
From a strategic standpoint, the year was marked by
completion of the raw material flexibility project that al-
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 27 >
CHEMICALS
lows flexibility for the production of up to 15%
Focused on adopting a language more consis-
of ethylene using ethane as raw material at
tent with its market, our Basic Petrochemicals
the petrochemical plant in Bahia. Imported
Segment had its name changed to Chemicals.
Ethane arrived at the Company’s furnaces at
the end of November, with Braskem’s first flex
operation in Camaçari.
The total annual production capacity of Eth-
ylene of the industrial units is 3.952 million tons.
Of the total ethylene produced by the Chemi-
Our focus at the Brazilian units remained
cals units, approximately 80% is transferred for
Strategic management
for the environment
At the beginning of 2017, Braskem acquired
on operational and commercial efficiency, on
consumption in the Company’s Polyolefins and
63.7% of Cetrel, a strategic environmental
serving the Brazilian market, on ensuring ex-
Vinyls units. The segment’s annual production
management company for the operation of
ports of the volume not sold in this market,
capacity of Propene totals 1.585 million tons, of
the Camaçari Petrochemical Complex in Bahia.
especially for Mercosur, and on finalizing the
which 65%, on average, is transferred for con-
With a relevant role in managing our environ-
investment to provide greater flexibility to the
sumption in the Company’s Polyolefins seg-
mental processes in the region, the Compa-
operation of the cat cracker in Bahia.
ment. The unit’s main products, Ethylene, Pro-
ny treats and disposes effluents and industrial
pene, Cumene, Gasoline, Benzene, Toluene, and
waste, conducts environmental monitoring
Paraxylene accounted for nearly 80% of the net
and supplies water for industrial use, meeting
revenue for Chemicals in 2017.
Our focus at the Brazilian units
remained on operational and
commercial efficiency
not only Braskem’s needs but also the needs
of nearly 100 clients at the industrial complex.
The acquisition is intended to make our indus-
trial operations even safer and more reliable,
and is in line with our strategy of strengthen-
ing the petrochemical operation.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS The Chemicals segment owns and operates four
petrochemical complexes ─ Camaçari (BA), Triunfo
(RS), São Paulo (SP), and Rio de Janeiro (RJ), where
olefins, aromatics, and utilities are produced.
Financial Overview (BRL billion)
2017 (A)
2016 (B)
VAR. (A) / (B)
Net revenue
COGS
Gross profit
Gross Margin
SG&A
Other Operating Revenue (Expenses)
Ethane in production
Our Chemicals Unit in Camaçari (Bahia) began the operations
using imported to produce basic chemicals, which increases
EBITDA
EBITDA Margin
our share of ethane-based production to 20% in Braskem’s
Net Revenue (USD billion)
raw material matrix in Brazil. BRL 380 million was invested in
the technological adaptation of the unit, in the interconnec-
tion pipeline, and in the adaptation of the logistics infrastruc-
ture at the Aratu Port Terminal in Candeias, Bahia.
EBITDA (USD billion)
25.179
25.063
(20.530)
(20.248)
4.649
18%
(773)
(197)
4.809
19%
7.891
1.510
4.814
19%
(680)
(410)
4.910
20%
7.242
1.415
0%
1%
-3%
0 p.p.
14%
-52%
-2%
1 p.p.
9%
7%
< 28 >
Alternative sources
Our unit in Duque de Caxias, Rio de
Janeiro (RJ), received its first ship-
ment by sea from the United States,
of 4,500 tons of ethane. The ship
brought raw material from shale gas
as part of the agreement with En-
terprise Products, a North American
company with which we entered into
an agreement to supply ethane. The
project is part of Braskem’s strategy
to make its petrochemical production
more flexible with alternative sources
of raw materials.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 29 >
POLYOLEFINS
The Polyolefins segment consists of 18 Polyethylene
São Paulo, Cubatão and Paulínia, with total production
(PE) and Polypropylene (PP) plants in Brazil, includ-
capacity of 3.055 million tons of PE, of which 200,000
ing the production of Green Polyethylene made from
tons are of green PE, and 1.85 million tons are of PP. As
renewable raw material. The industrial operations in-
of the first quarter of 2017, the UTEC business that un-
clude PE and PP plants located in the petrochemical
til then was part of the Polyolefins segment, became
complexes in Triunfo, Camaçari, Rio de Janeiro, Greater
part of the United States and Europe segment.
The segment consists
of 18 Polyethylene (PE)
and Polypropylene
(PP) plants in Brazil,
including the production
of Green Polyethylene
Financial Overview (BRL billion)
2017 (A)
2016 (B)
VAR. (A) / (B)
Net revenue
COGS
Gross profit
Gross Margin
SG&A
Other Operating Revenue (Expenses)
EBITDA
EBITDA Margin
Net Revenue (USD billion)
EBITDA (USD billion)
19.650
20.307
(15.572)
(15.981)
4.079
21%
4.326
21%
(1.322)
(1.285)
(178)
3.001
15%
6.157
943
(199)
3.291
16%
5.850
935
-3%
-3%
-6%
- 1 p.p.
3%
-11%
-9%
- 1 p.p.
5%
1%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 30 >
VINYLS
The Vinyls segment consists of the industrial
Petrochemical Complex, and two chlorine soda
and commercial operations of the PVC, chlo-
plants, also located in the Camaçari and Alagoas
rine, and caustic soda units, as well as other
Petrochemical Complex. The Company’s annual
products such as hydrogen and sodium hypo-
production capacity of PVC is 710,000 tons and
chlorite. The industrial operations involve three
the annual production capacity of caustic soda
PVC plants located in the Camaçari and Alagoas
is 539,000 tons.
Financial Overview (BRL billion)
2017 (A)
2016 (B)
VAR. (A) / (B)
Net revenue
COGS
Gross profit
Gross Margin
SG&A
Other Operating Revenue (Expenses)
EBITDA
EBITDA Margin
Net Revenue (USD billion)
EBITDA (USD billion)
3.067
3.016
(2.606)
(2.815)
461
15%
(163)
(163)
454
15%
962
143
201
7%
(237)
(72)
241
8%
870
69
2%
-7%
129%
8 p.p.
-31%
127%
88%
7 p.p.
11%
108%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 31 >
Financial Overview (USD billion)
2017 (A)
2016 (B)
VAR. (A) / (B)
UNITED STATES AND EUROPE
The average price of propene in the American Gulf
(USG) was USD 986/t, up 30% from the previous year,
as a result of the increase in exports and the lower in-
ventory levels of this product. In this scenario, the PP
spread in the United States was USD 585/t, 17% lower
than in 2016.
Despite this scenario, our operations in the United
States and Europe yielded significant results in 2017,
with an EBITDA of USD 647 million (BRL 2.063 billion),
7% lower than the EBITDA recorded in the previous
year. This result was mainly achieved by the Compa-
ny’s strategy to ensure operational and commercial
Net revenue
COGS
Gross profit
Gross Margin
efficiency, recording a 97% utilization rate of the units
SG&A
and taking advantage of market opportunities given
the strong demand for PP in these markets.
The utilization rate was 97%, which was 3 p.p. be-
low 2016 due to a revised production capacity. Even
so, production in the United States and Europe was
5% higher, the Company’s historical record. There
Other Operating Revenue (Expenses)
EBITDA
EBITDA Margin
were also record sales, with 5% growth, mainly due to
Net Revenue (USD billion)
the increase in capacity in United States plants in late
2016, Germany in early 2017, and strong demand for PP
EBITDA (USD billion)
in these regions.
3.087
(2.324)
763
25%
(183)
(7)
647
21%
9.854
2.063
2.548
(1.750)
798
31%
(145)
(21)
698
27%
8.896
2.474
21%
33%
- 4%
- 6 p.p.
26%
- 68%
- 7%
- 6 p.p.
11%
-17%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 32 >
Solidarity in times of crisis
In August 2017, tropical storm Harvey made land-
In January 2017, we began operating our new
WP was developed and produced using the
Growth with focus on Clients
Ultra High Molecular Weight Polyethylene
Company’s proprietary technologies. This poly-
In June 2017, our Board of Directors approved the investment
fall in Texas, causing major flooding and power
(UHMWP) plant in La Porte, Texas. In addition to
mer has excellent mechanical properties, such
of as much as USD 675 million for the construction of a new
outages in areas near the Braskem plant in the
strengthening our position as one of the world’s
as high abrasion resistance, impact resistance,
Polypropylene (PP) production facility in the city of La Porte,
city of La Porte. The first category 4 hurricane to
largest UHMWP producers, the new plant rep-
and low friction coefficient. It is eight times
Texas. This investment will further strengthen our leadership in
hit the state in 56 years, the event shut down two
resents another milestone in Braskem’s growth
lighter than steel and ten times more durable
the production of this thermoplastic resin in the United States,
of our five PP plants for lack of power, left service
strategy in North America, enabling us to serve
than High Density Polyethylene (HDPE), and
where the company already owns five other PP industrial units.
providers and logistics unable to perform their
clients in North America and Europe with even
is indicated for applications in the automotive
As part of our internationalization strategy, the new plant will
duties, and prevented dozens of Members’ fami-
greater efficiency.
and transportation, electronics, fiber and tex-
contribute to meeting the growing demand of our Clients. The
lies from returning to their homes.
Marketed under the UTEC brand, the UHM-
tile, and industrial sectors, among others.
new Braskem plant will have a production capacity of 450,000
To learn more, visit www.braskem.com/utec.
This unexpected event ─ as the hurricane was
not expected to hit the region with so much force
─ led us to take emergency measures in order to
assist the teams and their families and preserve
the integrity of the plants. As a result, we kept a
boat in operation in order to help rescue people
who were trapped in their homes, assisted with
hotel reservations for those who could not return
to their homes, and provided power generators,
water, and food to ensure the well-being of peo-
ple. This was crisis management organized by the
Members themselves, who decided to assist in
critical activities to endure that moment.
tons of polypropylene per year and will occupy part of the com-
pany’s 800,000 sqm complex in the region. In this way, the new
plant will use the existing support infrastructure, benefiting from
the connection to receive raw material, the railroad network, the
central control room, testing facilities, and others.
The project should positively impact economic activity in the
region, employing nearly 1,000 people during the development
and construction phases, and creating another 50 job openings
when the plant begins operating. The project is expected to be
completed in the first quarter of 2020.
To learn more, visit www.braskem.com.br/usa/delta
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 33 >
MEXICO
The year 2017 marked the first calendar year of
complete operation of the Braskem Idesa Indus-
trial Complex in Mexico, a period already highlight-
ed by production and operational stability. From a
commercial standpoint, there was very significant
progress penetrating Mexico’s domestic market,
with significant levels of market share. In exports,
the major focus was on more strategic markets with
better margins in the United States and Europe.
In the year, the EBITDA recorded by the Mexi-
can unit totaled USD 623 million, recording an 88%
average operating rate for the PE plants. Our focus
was on the production stability of the Petrochem-
ical Complex, on the increase in sales in the Mexi-
can market, consolidating the relationship with local
clients, and on exports with synergy with Braskem’s
operations in other regions.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 34 >
Financial Overview (BRL billion)
2017 (A)
2016 (B) VAR. (A) / (B)
Net revenue
COGS
1.128
474
(657)
(344)
The operation of Braskem Idesa has been changing
the Mexican market for thermoplastic resins. Since a
significant portion of the Mexican market is supplied
from abroad, Braskem Idesa has already sold 65% of
its production to the domestic market, helping the
country reduce its dependence from abroad. Given the
greater product availability, total sales volume of PE
was 124% higher than 2016. Exports, in turn, were 81%
higher, with an increase in the share of more profitable
markets such as Europe and the United States, due to
the increased product portfolio and greater coordina-
tion with US and European sales teams.
Among the key points for our success in this first year
Gross profit
is the entire knowledge transfer process from Braskem
Brazil to Mexico, carried out by a team focused on the
Gross Margin
project during the first months of operation. This was
a decisive factor toward qualifying the local workforce,
SG&A
both for operations and maintenance. With this re-
sult, we have already initiated the process to downsize
the Brazilian team, which, of the 100 people in the first
month of operation now has approximately 30. It is ex-
Other Operating Revenue (Expenses)
EBITDA
pected that, in 2018, this number will drop to 14 Brazil-
EBITDA Margin
ians, out of a total of 790 local Members.
472
42%
(90)
9
623
55%
131
28%
(68)
0
163
Net Revenue (USD billion)
3.601
1.587
EBITDA (USD billion)
1.987
530
127%
275%
34%
21 p.p.
138%
91%
261%
14 p.p.
31%
11.948%
282%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 35 >
INNOVATION
ALIGNMENT AND GLOBAL IDEAS
Braskem was born with innovation as
a part of its business strategy. For our
Members, thinking beyond the basics
and focusing on developing unique
products and solutions for the market
is now a transformation tool that helps
the world ─ and the Company – evolve.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 36 >
X-RAY OF INNOVATION
In addition to strengthening existing bu-
siness, today, innovation plays a key role
in our current flow towards creating new
chnology (MIT), through the Industrial
Liaison Program6, and the opportunity to
expand knowledge in advanced metabolic
products, new solutions, and building the
engineering processes, with a new team
chemicals of the future, effectively su-
pporting the sustainable development of
structured in the United States, where
research in this field is more advanced7.
business, society, and the environment.
In addition, in order to strengthen the
As a global player in the sector and
alignment between researchers and te-
continuing the process to globalize the
chnology engineers at all our units in the
Company, in January 2017 the innovation
world, every two years we hold a conferen-
areas in Brazil and the United States mer-
ce to share experiences, stimulate the ge-
ged to form a single international team fo-
neration of ideas, and more thoroughly le-
cused on developing projects aligned with
arn about ongoing projects and research. In
Braskem’s growth strategy. The initiative
2017, the third edition was attended by 240
intensified the exchange of information
people, and 120 studies were presented, in
and experiences among countries, crea-
addition to two international speakers.
ting a synergy process that will be the ba-
ckbone of the Company's internationali-
zation strategy in the Americas.
This new dynamics of global operation in
innovation allows Braskem to leverage the
6 MIT Industrial Liaison Program (ILP): http://ilp.mit.edu
best from each region. One such example
7 Consists of manipulating the metabolism of orga-
is the Company's relationship with leading
nisms in order to optimize genetic and regulatory
universities in the United States, among
processes in cells to increase production of a given
them the Massachusetts Institute of Te-
substance.
296
Members
1
Technical
Center in
Coatzacoalcos
(Mexico)
1
Technological
Center in Wessling
(Germany)
2
Technology and
Innovation Centers,
in Triunfo (Brazil)
and Pittsburgh
(United States)
7
Pilot
Plants
1
Process Technology
Development
Center, in Mauá
(Brazil)
1
Renewable
Chemicals Research
Center in the city of
Campinas (Brazil)
12.6%
of the sales generated
by the Polyolefin Unit
South America and
Europe were based on
products developed by
the Innovation area.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 37 >
In 2017...
Innovative solutions
355 projects to develop
new products and processes
BRL 167.5
million invested
29 new patent requests and
83 extensions. Currently, the
Company has 501 active
documents, of which
199 patents were granted.
440 Clients received support
from the Technology and
Innovation Center in Brazil
(over 23,000 analyses
carried out) and 65 in
the United States (about
17,000 analyses)
TECHNOLOGICAL COOPERATION
In December 2017, we began a partnership with Haldor Topsoe
opment of this technology ─ carried out in partnership with
– a Danish company and a global leader in catalysts and sci-
the North American University of Clemson and the Federal
ence of surfaces – in order to develop a pioneering solution
University of Rio Grande do Sul (UFRGS) will help detect
of monoeethylene glycol (MEG) from sugar, i.e. from renew-
the change in the environment inside the packaging, a sign
able sources of raw material. MEG is one of the components
that the food may be deteriorating. The forecast is that in
in the production of PET, an important resin in the textile and
about three years this product will already be available on
packaging sectors and widely used to produce bottles. The
the shelves for consumers.
project will focus on converting sugar into resin at a single
industrial unit, significantly reducing the cost of production.
The partnership includes the construction of a demonstra-
HIGH PERFORMANCE
Specially developed to produce high performance foams,
tion unit in Denmark, scheduled to begin operations in 2019.
Braskem Amppleo is a polypropylene resin with High Melt
THE FUTURE WITH SMART PACKAGING
How about having a package at home that shows you if
Strength properties, able to withstand temperatures up to
100°C without deforming. In addition to being fully recy-
clable, the product allows for the production of versatile
a product is still good for consumption? It may also help
foams with the possibility of developing applications for
identify dates in very small font, which often blur over
the automotive, industrial, civil construction, packaging,
time. Braskem is already developing a solution in packages
and appliances markets. Research to develop this resin
that, through a change in color, shows the quality and the
was conducted at the Braskem Innovation and Technology
state of conservation of various products, from food to
Center at the Triunfo Petrochemical Complex in Brazil and
cosmetics. The product is still being tested, but the devel-
the Pittsburgh Innovation Center in the United States.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 38 >
RESISTANCE AND FLEXIBILITY
Extending limits
With strong mechanical strength, transparency, and productivity, our solu-
Always focused on offering innovative solutions that are
tions using polyethylene (PE) resins to produce shrinkfilm, of the Braskem
aligned with Client needs, we constantly invest in moderniz-
Proxess family are mainly utilized in the food and beverage markets to protect
ing our laboratories and the Technology and Innovation Cen-
cargo, to guarantee integrity and safety in transport, storage, and distribu-
ter (CTI). In 2017, the Triunfo unit (Brazil) inaugurated a com-
tion. Braskem FlexusCling, specially developed for the extrusion of stretch
plete rotomolding laboratory, which will be used to develop
film, stands out for its high load retention and excellent performance, even
new solutions, perform productivity analyses, technical com-
at low temperatures, as well as impact and puncture resistance. Today, the
parisons between materials, and portfolio grades. The invest-
market for shrink and stretch films is responsible for consuming between
ment was BRL 1.7 million.
20 and 25% of the volume of polyethylene in the flexibles segment in Brazil.
In addition, Triunfo's CTI advanced its research on materi-
GLOSS AND FINISHING
Focusing on the cosmetics, hygiene, and cleaning and food markets, rigid
als for 3D printing, creating solutions, especially for the proj-
ect developed in partnership with Made in Space, a leading
North American company in 3D printer development for op-
polyethylene from the Braskem Rigeo Lumios family provides increased
erating in zero gravity, and NASA supplier.
surface gloss, offering better package finishing. With intense and vibrant
In 2016, we expanded our borders and took Green Plas-
colors, the resin gives the product greater visibility on the shelves.
tic I'm greenTM to the International Space Station (ISS). Now,
SOLAR POWER
The partnership with Ciel et Terre Brasil allowed for the expansion of the
with the new solutions developed by Braskem, beginning 2018
the astronauts will be able to use a machine to recycle pack-
aging and plastic objects, capable of further expanding the
Hydrelio® technology for floating solar power generation. Solar panels
autonomy and sustainability of future missions.
on floats may be applied on a wide variety of water surfaces. Among the
Part of the "Printing the Future" project will be the first com-
benefits of its use are freeing up land, reducing costs of connection to
mercial plastic recycling operation in the history of space mis-
the network by using existing electrical infrastructures, increasing solar
sions. The machine consists of a plastic grinding and extrusion
productivity due to the natural cooling of the system by the water sur-
system, producing a filament suitable for the 3D printer, which
face, simpler and less expensive maintenance, and others.
may be used again to print tools and other plastic materials.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Entrepreneurship platform
More sustainable cycles
Braskem Labs is an entrepreneurial platform with programs focused on accelerat-
Evaluating the life cycle of a product has become an increasingly essential
ing innovative and sustainable business and on meeting the challenges of society
tool for monitoring and reducing the environmental impacts caused by our
and of our businesses.
LEARN MORE
Braskem Labs Scale: acceleration program carried out in partnership with
ACE, which, since 2015, has accelerated over 40 companies. It seeks more
business. This assessment includes Braskem's entire value chain – from ex-
tracting the raw material to disposing of the product – and evaluates all the
benefits that our solutions may bring to developing a strategy – and world
– that is increasingly sustainable.
Since 2005, we have used the methodology known as Life Cycle Assess-
mature entrepreneurs, whose solutions are innovative, contain plastic or
ment (LCA), which now has over 57 studies completed and seven ongoing.
chemicals, and have social and environmental impact. Of the 10 companies
Recently, the process began to be tested in industrial areas, to better sup-
selected in the 2017 edition, 60% received investment or are in advanced
port decision-making in various actions, and in our Client chain, and the
conversations. As a way to contribute to the advancement of the Sustain-
discussion about raw material composition and product evaluation in the
able Development Goals, as of 2018 all projects selected should make clear
Procurement area.
how they will cause positive impacts in the SDGs aligned with its proposal.
In order to reinforce the importance of the LCA process, Braskem is part
of the Brazilian Entrepreneurial Network for Life Cycle Assessment, a joint
Braskem LabsChallenge: Braskem LabsChallenge: Braskem's challenge pro-
gram, through which the company's areas may launch challenges for the start-
initiative of companies and institutions that in 2017 became a Civil Society
Organization of Public Interest (OSCIP), which includes the participation of
up ecosystem. Those selected will be able to run a pilot project in Braskem’s
over 40 companies from various sectors, such as Boticário, Natura, Duratex,
industrial units or administrative areas. With challenges from the Logistics and
Basf, ArcellorMittal, and others. Through this initiative, we seek to mobilize
Services to Personnel areas, the first round included 130 registered startups
companies, coordinate governments, and educate consumers to incorpo-
and presented 15 proposals for pilot projects to be implemented. The program
rate the LCA as a tool to determine the sustainability of a product.
is carried out in partnership with the innovation consulting firm Innoscience.
Among the highlights of 2017 is a study proving that plastic is a viable
Braskem Labs Ignition: acceleration for startups in the validation phase
of their business model.
being more practical, easier, safer, lighter, and more resistant, plastic buck-
ets make it easier to reuse and recycle packaging, reduce packaging mass
and sustainable alternative for the paint packaging market. In addition to
by 20% (allowing for more efficient transportation), and decreases environ-
To learn more about the Braskem Labs Platform,
visit www.braskemlabs.com/labs/home-en
mental impact by 30%.
< 39 >
In 2017 alone,
Braskem
completed 14
new LCA studies.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 40 >
LESS
POLLUTION
Results showed that
replacing 5% of the annual
market of traditional paint
containers with plastic buckets
would reduce CO2
emissions
by the equivalent of removing
all cars from the city of São
Paulo for one hour.
Externalities
Another intense project during the year was an external-
ities study focused on packaging of perishable products.
Today, packaging accounts for nearly 40% of the con-
Yogurt: The use of plastic in packaging
sumption of plastics and 80% is discarded after a single
generates a benefit by preventing waste
use. On the other hand, about 1.3 billion tons of food go
four times greater than the cost of pro-
to waste each year and packaging is fundamental to its
ducing the plastic and its final disposal.
protection. In seeking to balance the positive and negative
Rice: uses only two grams for each pack-
impacts of this chain, the British company Trucost carried
aged kilo, 43 times more efficient than sell-
out a study to calculate the total cost of packaging (nor-
ing in bulk.
mal costs plus negative externalities) and compare it with
Meat: The use of plastic is 148 times more
the benefit they bring by reducing food waste. Three type
economical than if the product were sold
of food normally packaged in plastic were evaluated: yo-
without wrapping.
gurt, rice, and meat.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 41 >
GREEN FASHION AND 3D
Plastic can also be seen as a trend in the
fashion world. And that's what the part-
nership between Braskem and the brand
À La Garçonne showed in the last edition
of São Paulo Fashion Week. Bracelets and
buttons used in the collection were pro-
duced through 3D printing using Green
Plastic ─ a proposal aligned to the con-
cepts of environmental preservation, re-
cycling, upcycling, and reuse.
Innovation in design,
runways, and walkways
The search for solutions goes beyond the traditional market.
Another initiative of great importance to Braskem was
We want to value plastic and make the benefits of plastic
the renewal of the sponsorship of the Brazilian Paralym-
more visible to different areas, always aligned with modern,
pic Track Team for four more years. Through this initia-
innovative, and sustainable solutions. With the program De-
tive, we will assist in developing and technically preparing
sign Challenges ─ already in its fifth edition ─ we have given
participants for the upcoming national and international
students of architecture and design a chance to show their
competitions, such as the South American Games in Ar-
creativity and talent. In 2017, groups from seven universities
gentina in 2018, and the Parapan American Games and
in São Paulo were invited to create a collection, all in plastic,
the World Championship in 2019, as well as the Tokyo
of floors, floating walls, and coatings.
Paralympics in 2020).
After two months of training and mentoring, the best
Since 2015, we have supported the Brazilian team, an ac-
collection of products was from the Mauá Institute of Tech-
tion that is strongly aligned with our belief that chemicals
nology, winner of the 5th edition with a concept inspired by
and plastic improve people's lives. For the parathletes, this
biomimicry, a contemporary architecture current that seeks
improvement goes even further, since plastic has a practi-
sustainable solutions in nature, allowing for more organic
cal application in prostheses, making them lighter and more
forms. The project will be analyzed and detailed for com-
comfortable. The sponsorship will benefit 31 athletes and 12
mercialization by the company Atex, Braskem's client and
guiding athletes on the Brazilian team, divided between the
partner in this edition.
main and juvenile teams in the track and field events.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 42 >
STAKEHOLDERS
INSPIRING RELATIONSHIPS
Members, Communities, and Business Part-
ners. Every day, the people who make up our
main stakeholders are responsible for the
development and sustainable growth that we
are seeking for the future of Braskem.
< 43 >
Members 103-2, 103-3
We are a Company focused on the human being and promoting
the development of our Members, constantly seeking innova-
tion to better meet the needs of all our stakeholders. To this end,
we believe in the potential of all our professionals, and we work
so that everyone remains motivated to overcome market chal-
lenges with courage, ethics, and daring.
MODERN AND READY FOR THE FUTURE
For many, the chemical industry is still something unknown
Most beloved company
We rank fifth among the 50 companies most beloved by its Mem-
bers according to the Love Mondays ranking, a platform that receives
spontaneous and anonymous evaluations from employees about
professional satisfaction with organizations.
and far from the actual needs of people in their everyday lives.
impacts on the work environment and, with this, invite all our
But we believe in our Belief and Purpose, that we are focused
Members to express their expectations and what they val-
on creating solutions that will improve people’s lives. So why
ue in our Company for the future. We conducted interviews
not start at home?
with Leaders in all locations, analyzed the results of over 5,000
After facing a period of major internal and external chal-
spontaneous responses by Members all over the world, and
lenges in recent years, we began the year 2017 with a positive
held focus group sessions with over 300 Members and mar-
restlessness, and a search for more modern people manage-
ket professionals in the countries where we are present. The
ment models to strengthen the engagement of Members
result was beginning to build our Value Proposition, repre-
and attract new people to the future of Braskem.
senting our commitment to people. With this proposition, we
To this end, we developed our Employee Value Proposition
would like to promote the satisfaction and pride of belonging
(EVP), with the idea of understanding changes in society, its
to all Members, who are at the heart of our growth strategy.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS You are the protagonist
Relationships based on trust and au-
Challenge and be challenged
We are inspired to question common
Co-create your ideas
Innovation comes to life when working
tonomy are the key to transformation.
opinion and challenge each other. So
as a team. Do you have an idea? Share.
< 44 >
The freedom to be who you are
In November 2017, as part of this major cul-
tural and organizational transformation proj-
ect, we launched for all Members an initia-
tive that had a major impact on people’s daily
lives: the free dress code. That is, profession-
als no longer need to follow the dress code
to which the corporate world is accustomed
─ with suits, ties, high heels, and, social attire-
allowing our Members to dress in the way that
Here you are encouraged to make a
we are always evolving and learning.
Connect. Make it happen
suits them best.
OUR VALUE PROPOSITION
Consisting of seven pillars, the Value
Proposition can be experienced every
day through relationships between pe-
ople, our purpose, career and develo-
pment opportunities, recognition and
rewards practices, and other initiatives,
and will work as a guideline for evolving
our practices and processes.
difference, every day.
Build Your Own Path
We believe there are many paths
Grow with us
Here the growth opportunities are
Feel proud of what you do
Participate in sustainable solutions
You’re free to be yourself
At Braskem, diversity and respect are
to success. And you will always be
great. Be part of an ethical, transparent,
that improve people’s lives. With an
essential. Here you are valued for being
encouraged to walk your own.
and prosperous company that always
innovative attitude, your work benefits
who you are and the opportunities are
seeks to go further.
society and the planet.
the same for everyone. No exceptions.
In industrial areas, it is still mandatory to
follow specific HSE guidelines regarding uni-
forms and protective equipment. However,
in the plant offices and administrative areas,
Members, visitors and third parties may wear
any type of clothing ─ always keeping in mind
that it is still important for attire to be appro-
priate to job commitments and to use com-
mon sense.
Although simple, this action was an im-
portant step to valuing individual expression
as part of our workday, with a lighter work en-
vironment, open to diversity and individuality.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 45 >
WHO WE ARE?
TOTAL NUMBER OF MEMBERS
(WORLDWIDE) 405-1
2015
2016
2017
MEMBERS BY EMPLOYMENT TYPE AND WORK REGIME (2017) 102-8
BRAZIL
UNITED
STATES
GERMANY MEXICO
INTERNATIONAL
OFFICES
TOTAL
6,239
6,005
6,010
Employment
type
Permanent
5,981
699
167
785
1,756
1,651
1,703
TOTAL
7,995
7.656
7,713
Temporary
15
0
6
0
Work
regime
Full time
5,991
696
163
785
Part time
5
3
10
0
60
0
60
0
7,692
21
7,695
18
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 46 >
RATIO OF SENIOR MANAGEMENT HIRED
WITHIN THE LOCAL COMMUNITY 202-2
RATIO BETWEEN THE LOWEST SALARY COMPARED
WITH THE LOCAL MINIMUM WAGE* 202-1
2015
2016
2017
2015
2016
2017
Brazil
USA
Germany
Mexico
International offices
Grand Total
52%
N/D
63%
21%
38%
49%
53%
N/D
67%
26%
0%
49%
56%
N/A
67%
29%
0%
51%
* Members of senior management are Members from grades 3 to 10 that have direct reports (managers,
directors, vice presidents, and president). To calculate the number of leaders from the local community
(born in the same state where they work), we used the number of leaders in senior management positions
versus the place of birth, with the exception of the United States, which does not have this information (for
Alagoas
Bahia
Brazil
Rio de Janeiro
Rio Grande do Sul
São Paulo
United States
Germany
Mexico
1.5
1.6
2.2
1.8
1.7
2.9
2.0
3.6
1.5
1.6
2.2
1.8
1.8
3.1
2.0
3.5
1.5
1.6
2.1
1.8
1.7
3.1
2.0
3.6
legal reasons). This indicator is monitored for all countries where Braskem operates, those with industrial
* The calculation method used considers the lowest salary paid by Braskem using the Hay table (a table of sala-
units and those with only commercial offices.
ries and wages established by Braskem) valid until December using 85% of the range in Brazil and Mexico (lowest
percentage of the range that varies between 85 and 115) and 80% of the range in the United States and Germany
(smallest percentage of the range that varies between 80 and 120) of the smallest wage compared with the local
minimum-wage that is established through local bargaining agreements, for Brazil, and the local minimum wage for
non-unionized Members. At all locations, Braskem offers Members salaries above the minimum wage in the region.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS
< 47 >
HISTORICAL RATE 401-1
In 2017, we recorded a historical rate with the Company’s lowest voluntary turnover in the last four
years. An index monitored since 2009, the voluntary termination rate was 1.7% globally and 1.1% in
DIVERSITY 405-1
Brazil. We believe that the good working environment contributed strongly to this positive result,
For us, respecting diversity means respecting people as they
reinforced by the actions built based on the result of the Environmental Survey carried out in 2016.
are, valuing differences to create an environment of collab-
In addition, in 2017, the number of people hired (535) surpassed that of people dismissed (429). And,
oration, coexistence, and development. For this reason, the
following the rate of the last two years, the turnover ratio of women hired was again higher than that
Company has been working to become increasingly inclusive
of men ─ 9.6% versus 6.2%.
VOLUNTARY TERMINATION RATE
2015
2016
2017
2.0%
1.4%
1.5%
3.6%
3.6%
2.2%
OVERALL
2.4%
1.9%
1.7%
and welcoming, guaranteeing everyone equal opportunities
through the Diversity & Inclusion program. In addition to the
actions developed cross-sectionally, in other words, addressing
the aspect of diversity as a whole, we have actions structured
over five work fronts focused on the inclusion and empower-
ment of historically minority groups. The fronts are: Gender
Equity, Race and Ethnicity, LGBTQIA (Lesbian, Gay, Bisexual,
Transgender, Queer, Intersex, and Asexual), People with Dis-
abilities, and Social and economic (socially vulnerable people),
each with its own specific strategy and objectives.
We revised our recruitment
and selection directive in
order to align the criteria and
guidelines with promoting
diversity at Braskem
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 48 >
Our actions are guided by the initiatives to which we are
ing and engaging Leaders and Members in the topic. We con-
signatories, and that offer guiding work principles. On the
duct training in the areas of People & Organization, Commu-
front concerning gender, we are guided by the Women’s Em-
nication, Marketing, and Sustainable Development. The topic
powerment Principles of UN Women and the Global Com-
was also included in leadership development programs and in
pact; in Race and Ethnicity, we follow the Pro-Equity Program
the programs for interns and recently graduated. Annually, we
of Gender and Race of the Brazilian Federal Government; and
hold the Braskem Forum on Diversity and Inclusion, an action
in LGBTQIA, we are guided by the principles of the Business
conducted in all regions and, in 2017, we presented the topics
and LGBT Rights Forum, an initiative to which we were the
of unconscious bias and the importance of promoting empa-
first large Brazilian company to become a signatory.
thy. We have in place a structured communication campaign
When we talk about cross-sectional actions on diversity,
and a logo that represents all our action fronts through colors,
we focus mainly on communication and on promoting train-
also portraying our intention toward continuous inclusion.
In order to make the program more democratic and explore its
potential through collaboration, we created the Diversity and
Inclusion Working Groups on three different fronts: Race and
Ethnicity, Gender, and LGBTQIA. With a total of ninety members,
the role of group is to support the development of actions in
the Diversity & Inclusion program, and to act as multipliers
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 49 >
GENDER EQUITY
RACE AND ETHNICITY
The gender equity front aims to promote equal oppor-
The Race and Ethnicity front aims to guarantee a
tunities and empowerment of women. Our main fo-
racism-free work environment, encouraging the
cus is to increase the number of women in leadership
inclusion and empowerment of the black popula-
positions, in industrial positions, and in innovation and
tion. Among the initiatives are a partnership with
technology. One of the concerns on this front is think-
the consulting firm Empregue Afro, which offers
ing about how the gender issue intersects with race,
support in attracting black candidates to full-time
sexual orientation, gender identity, and social vulner-
positions and internship programs, with Zumbi dos
ability. We have in place actions structured in four
Palmares College.
pillars of action: Women’s Career, Maternity and Pa-
ternity, Health and Safety, and Communities and Pro-
curement. In addition to the structural issues, three
LGBTQIA
The LGBTQIA front aims to make Braskem an in-
versions of the Braskem Women’s Forum were held
creasingly inclusive place where each person may
throughout Brazil, addressing topics that contribute to
be who they really are. The elimination of any form
empowering women and breaking gender stereotypes,
of homophobia and transphobia is a major concern.
and we offered career workshops focused exclusively
Therefore, we always make our position clear and
on women. Also in 2017, in partnership with UN Women,
the topic is addressed in all cross-sectional actions
teacher training in the Board of Education in Camaçari
(Bahia) on the course entitled “O valente não é vio-
lento” (in loose translation: “Being brave doesn’t mean
being violent”) was given to support eliminating vio-
on diversity. At Braskem, we offer equal benefits and
recognize all forms of family structure. We also par-
ticipated in “Out and Equal” with the LGBTQIA work-
ing group, and we were the first Brazilian company
lence against women and girls in the region.
signatory to the Business and LGBT Rights Forum.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS
< 50 >
STRATEGIC INDICATORS
Monitoring indicators is one of the strategies
of the Diversity & Inclusion program.
Brasil
22% women, of which
25% are in leadership
positions
29% are black Members,
of which 13% are in
leadership positions.
DEVELOPMENT BASED ON CHALLENGES AND
THE LEADER-SUBORDINATE RELATIONSHIP 404-3
We believe that the development of
Throughout the cycle, the evolution
Pact, Monitoring, Evaluation, and
our Members is fundamental to the
of results is monitored and, if necessary,
Judgment), the performance man-
Company’s growth and perpetuity.
new directions are defined. The evalua-
agement cycle identifies opportuni-
Therefore, all professionals participate
tion considers the Member’s contribu-
ties for development to be included
annually in a performance manage-
tion to the organization in quantitative
when planning the challenges for the
ment cycle in which their performance
terms (Agreed Upon Results - Calcu-
following year or in the Plan for Educa-
is evaluated and monitored based on
lated Portion), and the alignment to the
tion for Work, which includes actions
the goals of the Program of Action
Culture (Assigned Portion), evaluated
supporting Continuing Education and
(PA) agreed upon with their Leader. All
through the Culture Competencies.
recommendations for corporate pro-
Members follow an individual program,
Performance and development
grams. In addition, in this process, the
a requirement to receive their variable
processes for Members are strongly
Leader also assesses the Member’s
compensation linked to the achieve-
based on challenges and the relation-
next steps in a clear, fair, impartial
ment of goals and alignment with the
ship between Leader and Subordinate.
manner, aligned with the Company’s
In Mexico, the United States, and Germany,
Company’s Culture.
Composed of four stages (Planning/
goals and culture.
the Diversity & Inclusion program is in
the early stages of development.
To learn more about our diversity processes,
visit www.braskem.com.br/diversity
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 51 >
JOINT GROWTH 404-3
Training and developing our professionals is part of our strat-
Among the main actions are the Operator Training Pro-
egy. We believe in the potential of our Members, and seek
gram, which was attended by 92 Members, the Technical
to invest in planned growth with educational and leadership
Skills Development Program, which involved 96 Maintenance
preparation projects. In 2017 alone, over BRL 21.2 million was
Team Members and 60 engineers, and the Educator Leaders
invested in training 7,438 Members worldwide.
Development Program trained 84 leaders in Brazil, 72 in the
Developing and attracting people to support Braskem’s
United States, and 57 other people through distance educa-
planned growth is at the heart of the People & Organization
tion on the Leaders’ Self-Development Platform and the LMS
strategy. Throughout 2017, the Company continued to imple-
Platform. In addition, 691 Leaders in Brazil, Mexico, USA, and
ment several programs focused on integrating, developing,
Europe were evaluated in the People and Succession Planning
and training Members and in preparing and educating leaders
process, which ensures succession planning for the Compa-
through various development actions.
ny’s strategic positions.
STARTING A CAREER 401-1
Braskem was the winner of the Top Ser Humano
ABRH RS (Top Human Being - ABRH RS) award, with
the case “Change Management at the PE5-Slurry
plant ─ improved work environment and productivity”
in the Organization category, and was recognized
in the United States (Philadelphia and Pittsburgh)
as one of the “Top Workplaces to Work For.”
Developing the potential of those who choose Braskem as
the place to take their first steps in the job market is also part
of our belief in the future and in our capacity for innovation.
When beginning at Braskem, young adults have intense con-
tact with the everyday life of a global company, and get in-
volved in projects and initiatives that ensure their professional
maturity. In addition, we have in place several internal training
programs, as well as programs developed with entities such
as SENAI (National Industrial Learning Service), technical ed-
ucation schools, and universities.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 52 >
• Young Partner Programs: over 13,000 enrolled and 205
opportunities offered to university students. Committed to
• Operator Training: to support the renewal of our team
of operators, in 2017 we opened 96 positions for trainees who,
promoting diversity, the initiatives carried out in 2017 resulted
for six months, experienced in practice what they learned at
in an increase of 15 p.p. in the number of interns hired from
educational institutions. Of these, 59 (61%) were employed
January to March who declared themselves as blacks and
as trainee operators. In addition, SENAI opened 11 classes of
pardos, and in the gender front, 54% of interns hired were
the Technical Course in Petrochemicals in the Brazilian states
women. Regarding recent graduates, the program included
where Braskem has industrial plants. The program content
31 former interns as junior analysts and/or junior engineers.
was built in partnership with the institution and meets in-
Participants had the opportunity to dialogue with more ex-
dustry demands, and now includes the appropriate techni-
perienced leaders and to expand their knowledge of the busi-
cal training to prepare new chemical and petrochemical pro-
ness through three modules that addressed: organization,
cess operators. Today, we already have 346 students enrolled
business tasks, and Client.
in SENAI, whose completion of the training is scheduled for
• Technical Internship: focused on training future mem-
bers of the technical areas of Maintenance, HSE, and Labo-
ratory, the program lasts one year and offers students from
2018/2019. New classes should be opened annually.
• Associates (USA): the 2015 group was concluded, and
six young adults presented their final projects to the leaders
technical courses a rich practical experience in their work
and were hired as Members. The group that began in 2016
area, as well as a development trail, which supports day-to-
started the second period of the program, nine young adults
day operations. In 2017, we opened 97 new positions for tech-
presented the first version of the project carried out during
nical internships at all Brazilian locations where Braskem has
the program and two of them were hired as Members. The
industrial operations: Mauá (SP), Paulínia (SP), Duque de Cax-
2017 class started with five young adults who completed their
ias (RJ), Triunfo (RS), Maceió (AL), and Camaçari (BA).
training on first Six Sigma.
We were recognized by the publication
Guia Você S/A among “The Best Companies
to Start a Career” voted by an audience
of young adults (born after 1991).
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 53 >
COMPETITIVE STRATEGY
Braskem has in place a Remuneration Policy with a competi-
ry, benefits such as: Health and Dental Plans, Private Pension,
tive strategy compared to the market, based on the premises
Life Insurance, Maternity and Paternity Leave, Meal Voucher;
of: transparency for Members, internal relativism, ensuring
and others. 401-2
the balance between Members regarding job maturity, the
size of the challenge of the action program, and individual
skills, external relativism, comparing salary surveys and glob-
For the Members of units in Brazil who intend to retire, we
offer the option of participating in the Horizontes program,
which, for one year, prepares and supports professionals
al benchmarks, and individual growth aimed at obtaining and
and their families for the post-career transition process. The
surpassing agreed upon results.
Horizontes program consists of an e-learning module and a
The Remuneration Strategy is guaranteed by the dai-
three-day classroom module, totaling 24 hours of training. It
ly management of the Leader-Subordinate relationship,
has two fundamental pillars:
where Members are rewarded based on meritocracy and the
• Reflection on life and career: awareness process for
achievement of results agreed upon annually, the latter re-
this new upcoming phase in life.
garding the Profit Sharing Program ─ Short-Term Incentive ─
whose differential is in measuring each Member’s evaluation
and the Company’s performance.
• Knowledge management: to ensure the continuity of the
Company’s business, through a structured knowledge transfer
As a complement to the Fixed and Variable Remuneration
process acquired by the member throughout his or her career
Strategy, we offer, to all Members regardless of job catego-
that is important for Braskem’s succession process. 404-2
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 54 >
TRADE UNION RELATIONS 102-41, 403-4
Braskem recognizes labor unions as entities that legally rep-
ducted annually or on specific dates in each region where the
resent the Members. Based on this premise, dialogue and un-
Company is present.
derstanding are the preferred way to solve possible labor and
The area supports the Company’s leaders, training them in
union conflicts. In this way, we seek to maintain an open and
labor and social security matters, so that they may better man-
constant dialogue with the various trade union representa-
age their teams, minimizing and quickly solving possible conflicts.
tives in the regions and countries where we operate.
In other countries, freedom of expression, workers’ option
In Brazil, in particular, the Labor and Trade Union Relations
for union association, and above all, the establishment of bi-
area is responsible for conducting negotiations on Collec-
partite commissions and committees (of worker and compa-
tive Bargaining Agreements and Conventions, which address
ny representatives) are also respected for training and moni-
economic, social, health, safety, and environmental issues
toring, especially on issues related to health, the environment,
and working conditions. This collective bargaining is con-
and other topics of interest.
Members covered by
collective agreements
BRAZIL
UNITED
STATES
5,928
60
Total number of Members
5,996
699
Percentage of Members covered
by collective agreements
99%
9%
GERMANY MEXICO
INTERNATIONAL
OFFICES
TOTAL
0
173
0%
327
785
42%
0
60
0%
6,315
7,713
82%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Communities 203-1, 103-2, 103-3
We believe it is our duty to contribute to the regions where we operate,
respecting the environment and creating value and well-being for ev-
eryone. In this way, we work guided by pillars that direct our actions and
initiatives with the communities and other stakeholders: human devel-
opment as well as social and environmental development.
We understand our role in the world and, with our Members, we seek
to make a difference. In 2017, we reformulated all social responsibility
projects so that we could act more effectively in the communities. Each
has been individually revised to further address the social needs of the
regions surrounding our operations.
HOW WE STRUCTURE OUR CAUSES
The purspose of our work with the Communities is to improve people’s lives
by creating sustainable solutions through chemicals and plastic. In this
way, we defined four strategic objectives that guide our projects: gener-
ate social impact, strengthen our reputation, get closer to our stakehold-
ers, and increase the visibility and familiarity of our actions. In addition,
we seek to link our projects with topics that are increasingly strategic for
Braskem ─ recycling, encouraging innovation, and environmental educa-
tion ─ reinforcing existing initiatives and establishing new partnerships in
the regions where we operate.
Culture
Strategic Objectives
Social
Impact
Visibility,
Familiarity
Reputation
Relations
POSITION STATEMENT ON SOCIAL RESPONSIBILITY
Foster Human Development
Stimulating the development
of people in our communities
Foster social and
environmental development
through chemicals and plastic
Strengthening the social and
environmental contributions
of our main products
Communities
of interest
Surrounding
communities
Chemicals and
plastic chain
Plastic and chemi-
cals as a solution
Sport,
culture,
professional
and human
education
Consumption,
post
consumption
Innovative
solutions, great
solutions
< 55 >
GLOBAL SCENARIO
Brazil
34 projects
BRL 18.2 million8
USA
36 projects
BRL 887,000
México
4 projects
BRL 759,0009
Alemanha
5 projects
BRL 16,000
8, 9 Amount considers projects,
sponsorships and donations.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS assessing, and approving pro-
ponents and their respective
projects, and included a phase
after completion of the project
for rendering of accounts and
verification. During the year,
GENERATING POSITIVE IMPACTS 413-1
Through our projects, we seek to generate positive social impact and
strengthen the relationship with the communities surrounding our opera-
tions. In 2017, we benefitted over 144,000 people in different areas of activ-
ity, at all our locations10, emphasizing education, culture, and sports. Some
of the main projects were:
Global Volunteering Program
We believe that corporate volunteering simultaneously contributes to the
100% of the donation process-
development of individuals, business, and society. For this reason, one of
es were evaluated according to
the highlights of the year was the pilot project of the Global Volunteering
the new guideline. The control
Program, which surprised us with the participation of a significant num-
tools are being implemented in
ber of Members. With the theme “Serving together to improve people’s
other countries, and should be
lives,” over 359 Braskem professionals from Brazil, Mexico, and the United
consolidated in 2018. This new
States, and 497 guest volunteers (family and friends of Members) partici-
guideline specifies the relevant
pated in a collaborative competition with limited duration, collecting over
aspects for the Company: eco-
18,000 items.
nomic and social development,
The Volunteering Program formed 74 teams in Brazil, USA, and Mexico.
environment, ethics and tech-
Each team chose an institution near the Braskem operations to carry out
ADVANCING
COMPLIANCE
PRACTICES IN
DONATIONS 203-1
In 2017, we took an important step
nical, and commercial. Through
volunteer work. The activities conducted by the volunteers were based on
with the launch and implemen-
the Guideline, we have clear di-
Braskem’s 10 Macro Goals for Sustainable Development. At the end of the
tation of the Sponsorships and
rection – in a global manner ─ of
Program, the top three teams in each country won recognition and organi-
Donations Procedure and Guide-
the path we want to follow in our
zations received a donation of goods and products.
line in Brazil. With it, we revised
social and environmental re-
the entire process for selecting,
sponsibility practices.
10 100% of countries with significant operations (industrial units).
< 56 >
74 teams formed
856 participants in
Mexico, USA, and Brazil
4.7% of Members engaged
1,222 volunteer actions
carried out in NGOs
in the communities
surrounding Braskem units
(operational and offices)
4,550 hours worked
18,786 items collected
91% would participate
again in 2018
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 57 >
to improve daily life in schools and their
community and in schools, which vot-
community, allowing them recognize
ed on the best idea to represent it in a
themselves as agents of change.
panel held at Braskem, including com-
The program’s methodology seeks
munity
leaders and educators. The
project Mega Ação Solidária (Mega
Solidarity Action), conceived by stu-
With a total
investment of BRL
550,000, this pilot project showed that
it is possible to carry out a global social
responsibility program that suits the
needs of each region.
RELATIONSHIP OF TRUST
Transformar Agora
In a partnership with NGO Atina, in
2017 we started the project called
Transformar Agora
Now) in State Public Schools Profes-
(Transforming
In Mexico, Braskem Idesa continu-
sora Maria Josefina Kuhlmann Flaquer,
to value the social context of the com-
ously works on the relationship with
Luís Washington Vita, and José Dan-
munity and stimulate a protagonist
the three communities (Pollo de Oro,
iel da Silveira in the ABC Paulista re-
role and empowerment of young peo-
dents from the Luís Washington Vita
Nahualapa, and Lazaro Cárdenas)
gion (Brazil). The initiative stimulates
ple, so that they feel capable of trans-
school to collect clothes, food, and
PLASTIANGUIS
around its industrial operation. Eighty
the search for activities that benefit
forming their reality. The students in-
other items for donation, was the big
visits are conducted every month
the school community, providing high
volved were divided into groups and
winner. But several other projects had
In Mexico, we launched the “Plastian-
with the purpose of disseminating
school youth with the opportunity to
participated in workshops to develop
great success in schools and will con-
guis” project, volunteer work carried out
and integrating residents into social
conceive projects that may be applied
projects that may be applied in the
tinue in 2018.
by over 50 Members that promoted the
programs such as Community Health
collection of recyclable plastic waste in
and Safety, Social Investment and
the city of Nanchital in exchange for bas-
Stakeholder Relations.
kets of food staples. The six tons collect-
This constant presence was instru-
ed during the event were sent to a local
mental to strengthen our relationship
recycling cooperative. The initiative ─ car-
with the Lazaro Cárdenas Communi-
ried out in partnership with the Nation-
ty in November 2017 during suspected
al Association of the Chemical Industry
air contamination. Government and
(ANIQ) ─ mobilized the local community,
industrial entities such as Civil Pro-
which contributed to the environment
tection and CLAM (Local Committee
and provided items of the basket of food
of Mutual Assistance) confirmed nor-
staples in exchange for waste collected.
mality of the operation.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Ser+realizador 301-3
In line with one of our most strategic topics, re-
cycling, Ser+realizador is a project in place in all
regions where we have operations in Brazil, and
ny has been Braskem’s partner for several years
in the Todos Somos Porto Alegre project, and will
now manage Braskem’s five regions of operation.
works together with waste sorting cooperatives.
Throughout the year, 1,278 pickers and 35
The goal of the project is to promote social inclu-
cooperatives benefited from technical advice,
sion and the social and economic development
training, equipment, and infrastructure. The de-
of waste pickers and cooperatives, by promoting
crease in numbers compared with the previous
the development of the national recycling chain.
year is due to a process to reposition the pro-
In addition, the project’s mission is to foster re-
gram, which now operates in regions surround-
cycling of post-consumer waste in the country.
In 2017, we hired the cooperative called Mãos
Verdes as the national manager of the program,
seeking to unify management and ensure better
ing Braskem. With a smaller scope, we managed
to work closer to each picker, resulting in a deep-
er and more lasting process of change.
In 2017, the total invested in the project was
interaction with the public sector. The compa-
BRL 1,966,508.50.
Pickers benefitted
Pickers trained
Pickers with increased income
2015
3,538
1,117
960
2016
3,444
858
787
2017
1,278
326
531
GOAL
1,255
497
789
< 58 >
There are environmental and social impacts associated with post-consumer plas-
tic waste. In order to mitigate these impacts, Braskem has in place the ser+reali-
zador project and the WeCycle platform that conduct preventive audits in 100%
of recyclers and supplier waste sorting cooperatives, guaranteeing recycled plastic
raw material with quality, traceability, process regularity, and socially and environ-
mentally responsible operations throughout the recycling cycle.
DECENT WORK
AND POST-CONSUMER
Edukatu
Since 2013, Edukatu ─ a project developed through a partnership between Braskem
and the Akatu Institute ─ has helped disseminate concepts about conscious con-
sumption and sustainability to teachers and students of elementary education in
Brazil. The online platform has already reached over 100,000 people over the last
five years, and 20,148 children and teachers have followed the learning tracks.
In 2017, Edukatu improved its performance through cooperation agreements
signed with the Municipal Boards of Education, reaching over 80 schools in Greater
São Paulo, and 2,538 people engaged in the learning tracks. In addition, the project
website surpassed the 2.6 million view mark and was cited in nearly 700 media arti-
cles. The investment for the year was BRL 230,000.00.
2015
2016
2017
GOAL
Total number of participants
20,795
28,441
38,773
40,700
Volume sorted (t)
25,703
30,824
14,352
27,116
Total number of students engaged
Total number of teachers engaged
669
6,558
1,605
11,172
2,586
17,562
1,980
14,600
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS
< 59 >
Instituto Fábrica de Florestas (IFF)
The IFF (Forestry Factory Institute) works toward the expansion, re-
covery, maintenance of green areas, and integrated environmental
education in the states of São Paulo, Rio de Janeiro, and Bahia (Brazil).
The project was developed with the surrounding communities. Today,
the organization empowers residents to collect seeds, produce and
plant native seedlings and maintain planted areas. The IFF is main-
tained by Braskem, Cetrel – Odebrecht Ambiental and the Industrial
Development Committee of Camaçari (Cofic), in Bahia (Brazil).
In 2017, investment in the program reached BRL 730,000.00. In-
cluded in this amount is the donation of BRL 250,000 to the creation
of an institutional documentary video of the project in webseries for-
mat for the Internet and smartphone, maintenance of the website,
and the creation and maintenance of pages on YouTube and Face-
book. These communication materials aim to increase the dissemi-
nation of Ecoparque Sauípe and attract new visitors.
TRADITIONAL PEOPLES
The participatory fishing monitoring
program, which has been tested and
implemented in the communities on
the island of Ilha de Maré since 2015 by
the Global Maré Institute, with the sup-
port of Braskem, is an innovative fishery
management tool that annually em-
Monitoring also provides satisfac-
powers 100 fishermen to live their tra-
tory data for emancipatory environ-
2015
2016
2017
GOAL
ditional way of life. This innovative tool
mental education, where social players
Seedlings produced
116,572
88,407
55,009
70,000
has made it possible to create collec-
are responsible for identifying prob-
tive spaces for discussion that protect
lems and recommending possible solu-
Seedlings planted
39,206
46,628
47,428
33,100
and improve local knowledge on fish-
tions. From this, the work in schools is
People trained
1,064
1,036
1,421
750
ing, and promote synergy among local
strengthened with the itinerant Envi-
residents who depend on the quality of
ronmental Tent, sharing with children
People impacted
16,739
27,506
22,883
15,000
artisanal fishing. This synergy resulted
knowledge from the traditional popu-
To learn more about our actions with Communities,
visit www.braskem.com.br/communities
in the creation of the Institute of Artis-
lation of which they are part. In 2017, a
anal Fishing, whose headquarters were
total of 125 children were educated by
inaugurated in April 2018.
6 trained local agents.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Suppliers 103-2, 103-3, 308-1, 414-1
Our suppliers are an essential part of our production chain,
and are key to maintaining our ability to create value. Thus,
through a decentralized management structure with areas
responsible for analyzing expenses, assessing the quality
of products and services and compliance with the Code of
Conduct, we closely follow the work developed with these
partners, seeking attitudes in line with our ethical, social,
and safety principles.
In addition to following our Corporate Policy, the Third Par-
ty Code of Conduct is inspired by widely accepted documents
ranging from the UN Universal Declaration of Human Rights
to the procedures recommended by the International Labor
Organization (ILO) and the laws and regulations of countries
where Braskem operates.
We also believe that we actively participate in facing
the challenges regarding the labor practices of our part-
ners, influencing this aspects by requiring specific docu-
mentation, signing the Code of Conduct (which includes
aspects such as business integrity, human rights, and labor
practices), in addition to completing an evaluation form on
sustainability practices.
< 60 >
Prioritizing actions
We evaluate practices that protect and promote Human Rights
in our operations and in the operations of our Suppliers chain in
accordance with the UN Guiding Principles on Businesses and
Human Rights. As a result, we prepared our first potential Human
Rights violations matrix in 2017, facilitating the immediate inclu-
sion of this aspect in the corporate risk matrix that is monitored
by our executives and/or our Board of Directors.
This matrix guided us to prioritize our actions, ensuring the
construction of assertive action plans capable of readjusting four
elevated risks to become moderate risks in 18 months. One of the
aspects covered this year was our work in the logistics chain to
protect children and adolescents from sexual exploitation.
www.braskem.com.br/ethics-line
The Third Party Code of Conduct is available for download
at www.braskem.com.br > Suppliers
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 61 >
MAIN SUPPLIERS CATEGORIES
Ethanol: this product, as well as its Suppliers, has one of the most
rigorous management processes at Braskem in order to guaran-
tee a resin with quality and social and environmental responsibility
throughout its production cycle. That is why, in 2016, we launched
our Responsible Ethanol Purchasing Program, which has two pil-
lars: Compliance and Excellence. Its goal is to guarantee compli-
ance with mandatory requirements and to improve the desired
parameters: slash and burn, biodiversity, and best environmental,
human rights, and labor practices.
Fossil raw materials: strategic for Braskem, suppliers of fossil raw
materials account for our largest share of expenditures. Among
the products in this category are naphtha, condensate, ethane,
propane, and LRH in Brazil, ethylene and propene in the United
States and Germany, and ethane in Mexico.
PERCENTAGE OF PURCHASES
BY SUPPLIERS BY COUNTRY* 204-1
2015
2016
64%
36%
99%
1%
96%
4%
-
-
76%
24%
99%
1%
94%
6%
84%
16%
2017
71%
29%
93%
7%
97%
3%
75%
25%
Brazil
United States
Germany
Mexico
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
* To calculate this indicator, we considered as “local” domestic suppliers, and locations with significant operations are the coun-
tries that have industrial units.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Ethanol Supplier Management
Ethanol Supplier Management has two pillars: Compliance
and Excellence. The former establishes the mandatory re-
quirements and the latter indicates the desired parameters
for continuous improvement. In 2017, Braskem purchased
99.5% of ethanol produced by suppliers formally committed
to these requirements and parameters, and only 0.5% SPOT
suppliers. SPOT purchases are limited to 20% of the total
% COMPLIANCE
95.60%
97%
98.40%
Of cases of non-compliance, none violate human la-
bor rights (such as slave or child labor, lack of employment
agreement, working hours, etc.) or ownership rights (all have
proven ownership or right to use the land, unchallenged by
third parties). This demonstrates that the negative image of
agricultural activity involving slave labor and social injustice is
not a reality for our qualified partners.
purchased annually, a practice adopted in order to train new
2015/16
2016/17
2017/18
suppliers. Beginning 2018, SPOT suppliers will sign the Third
Party Code of Conduct.
To ensure compliance, 100% of committed suppliers, and
a sample from their sugarcane suppliers are audited by third
parties every two years. In 2017, Control Union audited 88%
of its supplier plants, which demonstrated the continuous
annual evolution of their partners.
PROCUREMENT 102-9
The Procurement area is responsible for hiring ser-
vices (industrial and corporate), purchasing direct
materials (inputs), and indirect materials (MRO) and
equipment, with the main objective of providing
resources ─ competitively ─ to industrial plants and
administrative areas to ensure continuity of opera-
tions and perpetuity of the business. The main goals
of the area are related to financial gains from nego-
tiation, Supplier delivery deadlines, efficiency, and
compliance of procurement processes.
< 62 >
In 2017, the Procurement area took an effec-
tive step towards globalizing its processes, with all
Procurement teams from Mexico and the United
States reporting to the department located in the
office in São Paulo, Brazil. In this way, we gain in
efficiency through a more strategic view of oper-
ations and of the needs for inputs, materials, and
equipment. In the same year, we also implement-
ed a Global Procurement Policy that will help align
processes and integration, bringing more synergy
to our business.
PERCENTAGE OF
SUPPLIERS BY TYPE OF SERVICE
Machinery, equipment,
and facilities
Technical and
complementary services
Inputs
45.11%
45.50%
9.39%
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 63 >
RESPONSIBLE MANAGEMENT
103-2, 103-3, 308-1, 414-1
Sustainable Procurement
To ensure an increasingly robust, responsible, and
and Compliance. The non-conformities identified
Braskem is in the pilot phase of implement-
reliable Supplier management process, we have
are handled through an action plan involving users,
ing the Sustainable Procurement Tool, which
in place tools such as Supplier Radar. In 2017, giv-
Suppliers and the Procurement area.
enables the company to incorporate sustain-
en the economic scenario, the use of the tool was
In 2017, the Procurement area also continued to
ability criteria in the selection of Suppliers in
reinforced, helping to identify, in advance, com-
support the CDP Supply Chain program, which re-
procurement processes. The tool allows for
panies that are more exposed to labor, economic,
quests our Suppliers to report their greenhouse gas
a comparative analysis of suppliers’ matu-
and Health, Safety, and Environment risks. An ac-
emissions, as well as the risks and opportunities re-
rity according to established criteria, which
tion plan was established for Suppliers classified
lated to this aspect and the strategy to ensure im-
include environmental and human rights
as critical and high risk, in order to act preventively
proved management. In 2016, Braskem Idesa (Mex-
issues on water consumption, generation
Another project, completed in December 2017
and minimize possible impacts. The Supplier Radar
ico) joined the program, expanding its participation
and disposal of waste and effluents, health
and in line with the area’s Sustainable Development
is published quarterly, evaluating nearly 80 Suppli-
in 2017. Today, we are seeking to engage our part-
and safety at work and in our surroundings,
planning, was the production chain focused on im-
ers each cycle.
ners in the topics of Climate and Water, structur-
as well as Governance, Guarantee of Proper
proving Suppliers, in partnership with Sebrae in Rio
Another tool is the Supplier evaluation process.
ing a more thorough critical analysis of their perfor-
Working Conditions, and other topics.
de Janeiro. Fifteen micro- to medium-sized com-
This evaluation generates the Supplier Performance
mance. In the year 2017, we were recognized twice:
Index (IDF), applied to all companies considered
on the “A List” of the CDP Supply Chain Climate, and
critical after evaluating the Sustainability criteria.
when we ranked 29th among the companies with
The index includes criteria for Quality, QM (histo-
the best supplier engagement strategy in the world,
ry of non-conformities), Punctuality, HSE, Finance,
out of the 3,300 evaluated by the CDP.
For more information, go to www.cdp.net, in Search Responses.
panies were selected. Eight of them completed the
entire process, and received specialist training in
the Business Management, Finance, Quality, Doc-
umentation, and Corporate Strategies modules. At
the end of the project, with over 700 hours dedi-
cated to training, there was evolution in the man-
agement indicators of their business. In this way,
Braskem contributes to increasing the universe of
suppliers in the communities in which it operates.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 64 >
LOGISTICS
Working together with the Health, Safety and Envi-
ued the structured program to study risks involving
ronment (HSE) team, our Logistics area seeks to en-
six new products whose operations are classified
sure compliance with all social and environmental re-
as medium risk, based on volume transported and
ternational standards such as the CDI-t12 (Chemical
Distribution Institute)13 to identify risks and estab-
lish preventive control barriers. At our own termi-
ty standards based on the vetting criteria and rec-
ommendations determined by the Oil Companies
International Marine Forum (OCIMF). In 2017, we
quirements critical to operations when contracting
their level of hazard. All products of medium and
nals, through responsible performance and risk
conducted 650 vetting assessments for 355 trips,
transport, terminals, and other logistics services. We
high risk were evaluated, totaling over 23 products
analysis in operations, we maintained the SEMPRE
hauling 4.6MM tons of liquids and gases.
follow the evaluation methods based on Braskem’s
performance assessment system, vetting11, and
ABIQUIM’s System for the Evaluation of Safety,
and involving the analysis of over 597 routes, 23
Stage 3 certification, implementing the actions for
carriers, six loading and unloading areas, the con-
improvement identified with the goal of achieving
11 Formal and thorough examination (usually conducted by a specialist) prior
figurations of highway equipment, and 12 ships that
Stage 4 certification in 2018.
to granting approval or release.
Health, Environment, and Quality (SASSMAQ).
haul these products. We also conduct HSE-specific
All hiring of import, export, coastal shipping, and
12 https://www.cdit.nl/psp/cdit.home
In 2017, Safety of Processes in Logistics contin-
inspections at nine marine terminals based on in-
inland shipping vessels follows international safe-
13 http:/cdi.org.uk/
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 65 >
We maintain partnerships with major risk
pursuant to relevant programs that promote road
managers in Brazil and we hire most of our road
safety, among which the following stand out:
freight of non-hazardous products (resins) with
electronic trackers. For hazardous products,
• Olho Vivo na Estrada: created by ABIQUIM in
partnership with ABICLOR, the purpose of this pro-
100% of the freight must be tracked, work with
gram is to prevent, through driver awareness, unsafe
a fully-owned fleet and drivers with a direct em-
ployment relationship with the carriers. Specifi-
cally in the case of propylene, in addition to track-
behavior when transporting hazardous products.
Olho Vivo na Estrada is part of a risk management
system and its goal is to fully eliminate road acci-
ing 100% of the freight, telemetry is required on
dents involving chemicals.
board the vehicles.
To ensure safety, we also hold periodic meetings
• Transportadora da Vida: program of the
Trade Union of Carrier and Logistics Companies
with our service providers, ensuring that everyone
(SETCERGS), which certifies cargo transport com-
is up-to-date with our internal Health, Safety, and
panies that carry out actions with a greater em-
Environment processes, and conduct annual audits
phasis on safety.
at carrier headquarters, which include assessment
and planning of the corrective actions required for
• Na-Mão-Certa: program developed by OS-
CIP Childhood Brazil, which works to influence the
those with a below-expected result in the Suppli-
agenda for protecting children and adolescents in
er Performance Index (IDF). It is worth mentioning
that we also have a contract with Suatrans14, a lead-
er in response to chemical and environmental road
emergencies in Brazil.
the country, whether in partnership with compa-
nies, civil society, or the government. The role of
the organization is to ensure that aspects related
to sexual abuse and exploitation guide public and
It is important to point out that the areas respon-
private policies, offering information, solutions, and
sible for managing Braskem’s logistics activities work
strategies for different sectors of society.
14 www.suatrans.com
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS Braskem continues with its efforts to find creative
ways to reduce this indicator, such as the use of
closed circuits for transporting resins, sharing vehi-
cles with other shippers, as well as promoting more
sustainable modes of transportation. Finally, we seek
to prevent our businesses from being affected by
Brazil’s infrastructure bottlenecks, so we have been
working on developing logistics alternatives, such
as coastal shipping15 and rail transportation ─ modes
still underdeveloped in the country, especially when
compared to Mexico and the United States.
Today, the area works on different projects that
are part of “Logistics 2020,” which range from au-
tomating various processes, to increasing storage
efficiency and optimizing the logistics network of
the resins business and the “Athena,” which focuses
on restructuring chemical and vinyl logistics pro-
cesses, progressing with increased efficiency, new
logistics models, optimizing and maximizing assets,
automating the logistics chain, and more.
15 Navigation between ports in the same country or at small distances on
coastal waters.
< 66 >
Third-Party Work Conditions
Braskem renovated the work environments available for third-party activities in
its units’ logistics areas. Among the improvements are a women’s locker room,
renovated pantry, redefined layout with new furniture, air conditioning, and win-
dow tints. Such improvements have provided more visual, acoustic, and ther-
mal comfort, eliminating occupational hazards, and ensuring greater motivation,
well-being, and productivity for 14 fixed contractors and about 50 temporary
workers who circulate daily through these spaces.
Decent and socially responsible work
Braskem supports Childhood Brazil in fighting child sexual abuse and exploitation
in logistics operations. In 2017, we were recognized for the second consecutive year
by actions carried out in the Na Mão Certa Program, a Childhood Brazil initiative
that, in partnership with Braskem, coordinated the joining of ABIQUIM. In addition,
we raised awareness of 778 truck drivers, 25 carriers, and 18 factories, fulfilling our
strategy of contributing to building a solidarity protection network on the roads. In
2018, we will include the ports in this goal.
It is also important to improve the truck driver’s working conditions and the
quality of the stopping and rest areas, as well as reduce waiting time. Thus, they
avoid entering communities and finding themselves in situations involving prosti-
tution and the use of alcohol. Thus, in 2017, we launched the portal for scheduling
road shipments, we influenced the improvement of the infrastructure of a Logistics
Hub and two warehouses, and approved 12% of the fuel stations inspected by the
risk management company Buonny during the year. These advances also improved
the logistics operations, as well as safety and comfort for truck drivers.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 67 >
Clients
Our Clients deserve the best we have to offer. With
ences related to innovation, creativity, and knowledge, always
competitiveness, the search for new business, and man-
this in mind, we seek to build unique and effective
associated with the versatility and transformation potential
agement focused on business improvement, in 2017, the
solutions together, to create value and foster the
of plastic. In the three years of the program, over 1,000 people
program worked in partnership with 55 Clients, on over 80
development of our entire chain. We work in an in-
participated in training and market development initiatives,
initiatives implemented throughout the year.
tegrated manner, always seeking to combine our in-
BRL 160 million was invested in the export incentive program,
novation initiatives with the development of solu-
and over eight million people were impacted by the actions
tions in partnership with our Clients. In this way, all
promoted by the advantages of plastic.
Members are encouraged to perceive these needs
and make correct and responsible decisions, creat-
ing a dynamic and engaging environment that gives
Maxio® Seal: this seal serves one of our main growth pil-
lars ─ innovation. With it, we identify and develop resins
everyone a sense of belonging and pride.
that result in several gains for clients, such as lower en-
Among our main initiatives are:
ergy consumption, greater productivity in the production
process, and reduced weight of the final product, signifi-
GOLD CLASS
PICPlast: a Braskem initiative in partnership with the
Brazilian Plastic Industry Association (ABIPLAST).
cantly reducing production costs and environmental im-
We maintained our gold class assessment in supplying to
pacts. In 2017, the highlight was PG480 resin, available to
clients on the Ecovadis evaluation platform. Today, we are
the raffia market. The resin was designed to be applied in
among the 3% top performers on the platform in the chem-
The Plastic Chain Incentive Plan (PICPlast) has three
very high speed equipment, guaranteeing greater stability
ical industry. The goal of the platform is to develop practices
fronts: promoting the export of manufactured prod-
during production and an increase in raffia manufacturing
of corporate social responsibility through its influence in the
ucts, fostering competitiveness and industry innova-
capacity, with gains of up to 15% in productivity.
global supply chains.
tion, and promoting the advantages of plastic. In 2017,
the total invested surpassed BRL 30 million. Among
the actions conducted in the year, we highlight Plas-
Visio Program: through this initiative, we encourage shar-
ing of knowledge and experiences with our Clients and the
tCoLab, an open and free maker space set up in the
development of exclusive projects and solutions that meet
city of São Paulo that for two weeks offered experi-
specific demands. With advantages such as promoting
To learn more about the platform,
visit www.ecovadis.com/us/
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS < 68 >
CIRCULAR ECONOMY
In order to reaffirm our commitment to developing sustainable solutions in the
VALUING WASTE
A partnership with the GPA Group enables the recycling of approximately 60 tons
plastic chain, in 2017 we created the Wecycle Recycling & Platform area. With this,
of plastic per year for the production of new packaging of Qualitá stain remover, an
we want to strengthen our strategic position and leverage initiatives, businesses,
exclusive brand marketed in Extra and Pão de Açúcar supermarket chains. This ini-
and sustainable solutions related to the circular economy of plastic.
tiative, which is part of the Wecycle platform, will use the materials discarded at the
This new area, part of the Polyolefins Unit in South America and Europe, is res-
stations installed at Pão de Açúcar stores, which are donated to partner coopera-
ponsible for the development of products with post-consumer recycled content,
tives. Once sorted, the plastic is sent to a recycler that makes the resin, composed
process qualification, and technical reliability, focusing on creating value for pos-
of 70% recycled material and 30% virgin polyethylene. The resin is then sold to a
t-consumer waste and on the recycling chain, strengthening partnerships with
company that processes plastic, which will produce the product packaging and fill
clients, recyclers, and brand owners.
approximately ten thousand units of product per month.
FIRST ON THE MARKET
In 2017, we launched the first polypropylene and polyethylene resins made from
PLASTIC ON THE MOVE
In a partnership with the Brazilian bicycle manufacturer Muzzicycles, we enabled
the use of post-consumer Wecycle resin, from cooperatives supported by the
Platform, in Muzzi bicycle frames, an innovative technology developed in Bra-
recycled post-consumer waste content, with production volumes that can reach
zil by Juan Muzzi, its owner. Currently, Muzzicycles has the capacity to produce
50 tons per month. WCL H 1003 BBM polypropylene is produced from the annual
132,000 bicycle frames a year, representing the recycling of 150 tons of plastic
recycling of nearly 120,000 big bags and WCL L004 SCV polyethylene is produced
waste, keeping this material from being disposed. Each frame contains about
after the annual recycling of 2.4 million used and discarded bags in our Distribu-
three pounds of plastic, 30% of which is recycled. Some of the advantages of
tion Centers. WCL R703 PCW is produced from domestic post-consumer waste
plastic frames are resistance and impact absorption ─ characteristics of polyeth-
from blown polyethylene packages.
ylene – and the lifetime warranty for use.
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS
Responsibility, integrity, and transpar-
all our activities in this sector. In addition,
BRL thousands
ency in relationships are aspects that
in 2017 we developed a new guideline with
permeate activities and initiatives with
clear rules and procedures for any type
all our stakeholders. We seek to actively
of relationship with the government that
promote dialogue to defend the com-
came into effect in early 2018.
petitiveness of our production chain and
overcome challenges related to industri-
al policy and infrastructure still affecting
Among the issues that are part of our
discussion agenda is Reintegra, a gov-
ernment program that aims to return
the growth of Brazil.
to certain segments of exporters a per-
In the last two years, due to the im-
centage of the taxes levied on the pro-
provements
in our governance and
duction chain of goods sold abroad. In
Total tax incentives/credits*
- PRODESIN - ICMS
- REINTEGRA
Grants for investments, research,
and development, and other
relevant types of concessions**
compliance processes, we have rein-
2017, this percentage went from 0.1% to
FINEP
forced several practices in our opera-
2%, and for the year 2018, the 2% rate
FINEP Award
ECAs (financial aid from
credit and export agencies)***
tional model with trade associations and
was maintained.
the Government. Today we have even
Tax incentives on ICMS (VAT) grant-
clearer and more widespread rules for all
ed by the State of Alagoas through the
Members regarding controls and proto-
Program of Integrated Development of
cols that must be followed whenever we
the State (Prodesin), with the purpose of
deal with these stakeholders.
promoting the implementation and ex-
Through a tool on our intranet, all inter-
pansion of industries in Alagoas, changed
actions with public agents are mandatorily
its rules in 2016. The recovery of the mar-
reported, creating a record-base for email
ket in 2017 allowed the incentive, which is
exchanges, meetings, and participants ─ a
considered as a reducer of taxes on sales,
simple way to add more transparency to
to be optimized.
Government
103-2, 103-3 , 201-4
* Tax incentives/credits: restitution of federal taxes by the Reintegra program and ICMS tax incentives, granted by
the Government of Alagoas, through the Integrated Development Program of the State of Alagoas – Prodesin.
** Grants for investments, research, and development: awards and financing by FINEP for innovation projects.
*** Financial assistance from ECAs [and export and credit agencies]: risk insurance operation with Nippon Export and
Investment Insurance (NEXI- Japanese agency) for investment in maintenance and in the butadiene project.
< 69 >
2015
173.9
71.6
102.3
2016
87.5
78.8
8.7
-
-
-
-
-
-
-
-
2017
274.4
95.7
178.7
427.7
-
-
427.7
MESSAGE FROM THE BUSINESS LEADERBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTSUMMARY OF GRI CONTENT STANDARDSINNOVATIONGOVERNANCE AND COMPLIANCE STAKEHOLDERSCREDITS MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 70 >
HEALTH,
SAFETY, AND
ENVIRONMENT
POSITIVE TRANSFORMATIONS
We believe that our commitment to
sustainable development is essential for
growth and business sustainability. That’s
why we are challenged every day to make
our operations more efficient, with less and
less impact on people and the environment.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 71 >
We are a company that looks to the future and to
resents a significant evolution compared with 2016,
sible Action Program), and Management of Pro-
the opportunities that may be created through in-
when the result was 40%.
cess Safety Barriers. The units were submitted to
novation and work that is increasingly more geared
All audits were performed in an integrated man-
a safety culture evaluation to help them strength-
toward human beings. For this reason, taking care
ner, including requirements of the Management
en the Preventive Culture established by Braskem.
of the well-being of our Members, the communities
System, Programa Atuação Responsável® (Respon-
103-2, 103-3, 413-2
around our plants, and the environment is our way
of generating positive, concrete transformations.
We are also always looking for innovative and cre-
ative ideas that enable us to develop and deliver in-
telligent, unique solutions ─ and improving the reliable
performance of our plants becomes a key factor for
operational continuity. And that is how we developed
SEMPRE in 2013, our Integrated Health, Safety, and
Environment System that helps us reinforce a risk
prevention culture based on discipline and respect
for established safety processes and procedures.
The process takes into account the unit’s profile
and its main risks when setting annual goals for pro-
gression. In 2017, one hundred percent of planned
audits were carried out. Following our evolution
history, 83% of the industrial units reached Stage
EVOLUTION IN THE IMPLEMENTATION OF SEMPRE
I
G
N
D
R
O
C
C
A
S
T
N
A
L
P
F
O
E
G
A
T
N
E
C
R
E
P
I
N
O
T
U
L
O
V
E
F
O
E
G
A
T
S
R
E
H
T
O
T
I
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Diagnostic
Stage 1 – Construction of HSE bases
Stage 2 – Prevention of personal losses
Stage 3 – Prevention of large losses
Stage 4 – Assured performance in HSE
Stage 5 - High HSE performance
2013
2014
2015
2016
2017
4 in SEMPRE ─ Assured Performance HSE. This rep-
Note: In 2018, the focus is on implementing the Intelius Integrated Management System.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 72 >
GLOBAL, SIMPLIFIED,
AND ALIGNED 103-2
Focused on globalization and the sustainabil-
ity of our business performance, we integrate
our
internal standards,
incorporating and
improving the requirements of SEMPRE, of
Quality, and Industrial Excellence into a single
management system: Intelius.
A management model composed of a set
of guidelines and international best prac-
tices, Intelius is clearly correlated with our
strategy of sustainability and continuous
improvement. A development of the current
management system, it will act as a stan-
dard documentation, quality, productivity,
health, safety, and environment model for
all Braskem’s production units worldwide. At
the same time, it will be able to incorporate
new elements according to the needs and
characteristics of the business.
Today, the Intelius HSE pillar has 53 man-
datory global standards. In addition, its orga-
nizational dynamics allows for the modular
incorporation of future needs, and facili-
tates the addition of new work topics when-
ever necessary.
Management
System
Like SEMPRE, the success of this initiative is
directly associated with our operators. We be-
lieve in shared responsibility, so all teams in our
production unit receive constant training and
clear information regarding the goals through
daily meetings with management. In this way,
everyone becomes a protagonist, developing
solutions for process safety and managing our
ecoindicators.
HSE
Quality
Industrial Efficiency
Space for
new topics
Continuous Improvement & Sharing of Best Practices
Performance Monitoring
Space for new topics
Strengthening practices 103-3
For the 13th consecutive time, Braskem has been part
of the ISE portfolio (B3 Corporate Sustainability Index),
which recognizes Brazil’s best publicly traded companies
in management of sustainable development. Our per-
manence in the index reflects our commitment to best
practices in HSE, Corporate Governance, Social Respon-
sibility, Economic and Financial Management, and Envi-
ronmental Preservation. The new ISE portfolio if formed
by 38 shares from 34 companies representing 15 sectors
and totaling BRL 1.31 trillion in market cap.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 73 >
Investments and gains in environmental protection 103-2
Our business strategy involves continuous im-
damages. These amounts vary according to the
Type of expense (BRL millions)
provement planning in all environmental protec-
needs of the Company’s plants and units, ac-
tion processes relating to risk of accidents involv-
cording to maintenance schedules, recertifi-
ing processes or products. These investments are
cation, business strategy, and other reasons. In
variable and happen according to the goals of the
2016, as a result of improved quality of the diag-
period, migrating from one dimension to another
noses leading to a longer period of planning of
according to the main needs detected ─ maintain-
remediation processes, we increased disburse-
ing relative balance in order to generate positive
ments to treat contaminated areas, causing the
impacts in all HSE aspects.
need to adjust the amounts provisioned. In 2017,
In 2017, the amounts invested in these initia-
after adjustments in budget, the amounts re-
tives were reduced compared with 2016, main-
turned to levels of operating costs for remedia-
ly due to reduced provision for environmental
tion of liabilities.
Workplace safety
Process safety
Investments in HSE
Health
Environment
Total
Expenditure for treatment
of effluents and waste
Treatment of liquid effluents
Waste Management
Total
50.5
42.7
93.2
2015
65.6
13.0
4.7
31.1
114.4
103.9
2016
2017
51.4
25.9
2.8
23.8
51.1
55.3
7.5
87.6
3.9
13.1
112.1
52.6
57.2
106.4
109.8
Highlights in bioeconomics
Once again we were highlighted by ranking 36th among the “50 Hottest Com-
panies in the Advanced Bioeconomy 2017,” the largest news website on biofuels.
The ranking is formed based on the evaluation from international experts in the
sector, and on votes from subscribers. In 2017, for the first time, it was possible
to vote through social networks.
Type of expense (BRL millions)
2015
2016
2017
Emission management
Environmental licenses
Depreciation
Provision for recovery of environmental damages (environmental liabilities)
Other environmental management costs
8.1
1.1
46.0
65.8
66.6
7.9
1.0
46.0
182.6
59.7
8.8
1.0
46.0
102.5
48.9
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 74 >
gains remained at the same levels as in 2016, but it is import-
Health
Occupational Health
Our management model for Health, Safety, and Environment
issues also involves monitoring savings and costs avoided
through the improvement projects developed by the area.
The avoided costs recorded are basically the processes that
do not need to be paid, which varies a lot year after year. These
ant to note that the reduction in gains observed from GHG
initiatives occurred because most of the amounts are already
included in energy efficiency projects and initiatives.
It is should be noted that our energy consumption is pre-
dominantly thermoelectric, so projects involving improve-
ments in energy efficiency also positively impact reduction
of emissions and avoided costs. In 2017, this avoided cost was
61% higher than in the same period in 2016.
In total, this work resulted in gains of BRL 247.5 million16
in operations in Brazil, the United States, Germany, and now
Mexico. 103-3
16 Avoided costs through management of health, safety, and environment.
AVOIDED COSTS – MANAGEMENT OF HEALTH, SAFETY, AND ENVIRONMENT
103-3
Dimension (BRL millions)
2015
2016
2017
Safety
Workplace safety
Process Safety
Waste Generation
Water consumption
Environment
Effluent Generation
0.6
-27.0
19.0
13.5
7.2
6.2
-3.4
17.1
23.3
6.7
4.6
2.1
2.5
4.6
7.1
2.4
8.8
4.4
Energy consumption
116.8
134.9
217.7
GHG Emissions
Common Impact
Management
0.0
0.0
0.5
67.0
0.0
0.1
0.6
0.0
0.0
136.8
252.4
247.5
HSE
TOTAL
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 75 >
Occupational Health and Safety 103-2, 103-3, 403-217
In 2017, there was no record of any new cases or grievance
the severity rate is significant and reflects the continued
of occupational disease. As part of continuous improve-
emphasis on operational discipline for high risk activities
ment, Braskem continued strengthening its global align-
or activities that are life critical.
ment and standardized identification and evaluation of
occupational illness.
To reinforce prevention of new occurrences ─ especially
NUMBER OF ACCIDENTS X 1MM/MHW
serious accidents that may lead to death, which occurred
in 2016 ─ we developed a new safety plan that was cascaded
worldwide, after studies that searched for opportunities
for improvement in all our processes of loading and un-
loading products. In addition, we are conducting a global
Accident frequency rate (SAF + CAF)
Accident frequency rate (CAF)
awareness campaign so that our Members are always alert
Severity rate
and focused, in order to avoid potential accidents.
In 2017, the frequency of accidents with and without
lost time (CAF + SAF), considering Members and Third Par-
ties per million hours worked, showed an increase of 27%
Number of fatal accidents
2013
2014
2015
2016
2017
1.04
0.39
64.7
0
0.97
0.14
0.68
0.26
0.8
0.24
1.02
0.33
12.53
43.32
164.17
24.44
0
0
1
0
compared with the previous year, mainly due to contrac-
A highlight in 2017 was the prevention of incidents
include the Intelius global management system ─ Braskem
tor performance and routine tasks. The same happened
during loading and unloading of hazardous materials,
and Human Reliability. Intelius will establish a global plat-
with the Frequency Rate of Accidents with Lost Time, con-
based on the monitoring of performance in 2016 (fatali-
form for Braskem’s governance and HSE requirements.
sidering Members and Partners per million hours worked,
ty) and critical analysis. A global standard was developed
The human reliability processes were compared internally
with a 36% increase. The Severity Rate of Accidents with
for loading and unloading hazardous materials. In addition,
and externally in 2017 as part of the development of the
Lost Time dropped considerably (85%). The decrease in
several strategic HSE initiatives were developed in 2017 to
Company’s human reliability strategy.
17 Absenteeism rate: in 2017, the concept and calculation of this indicator were revised, and an interface was created to capture the indicator via Dashboard. In 2018, we will begin the
capture, and the target will only be defined after the capture has evolved and the results have been analyzed.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 76 >
Process Safety
413-2, 103-2, 103-3
TIER 1 - NUMBER OF ACCIDENTS
29
4
11
9
6
A result of our teams’ and leadership’s commitment,
Seeking continuous improvement in pro-
in 2017 we once again reduced the occurrence of
cess safety, we set global and per unit goals for
TIER 1 and TIER 2 events (including process acci-
the accident rates classified in TIER 1 and TIER
dents). This demonstrates a visible and continuous
2. The goals are monitored monthly and are re-
evolution of our actions toward previous assess-
defined each year according to Company and
ments that involve management and mitigation of
market performance. In 2017, the global goal
2013
2014
2015
2016
2017
TIER 1 - RATE OF ACCIDENTS
(NUMBER OF ACCIDENTS X 1MM/MHW)
potential risks and awareness of all concerning the
for TIER 1 frequency rate was 0.17, and 0.12 in
importance of safety procedures to ensure increas-
2018. The global TIER 2 goal was 0.80 in 2017,
0.70
ingly efficient processes.
1
2
3
Incident with loss of
containment and release of
product above cut-off point
Incident with loss of containment,
but with release of product
below cut-off point
Incident with small loss of
containment or system failure
that could potentially lead
to a process accident
and 0.70 in 2018. For per unit goals, each loca-
tion adopts the same value as the TIER 1 global
goal, and calculates its TIER 2 goal by conside-
ring the global goal value and its history.
In 2017, we recorded six TIER 1 events
(three less than the previous year), with a
rate of 0.14 per million hours worked (36%
less than 2016) – a number compatible with
the best benchmarks in process safety form
companies in the American chemicals sec-
tor (0.34 as the average benchmark of Ame-
rican companies in 2016).
0.32
0.22
0.14
0.09
2013
2014
2015
2016
2017
TIER 1 - SEVERITY RATE
3.24
3.41
0.25
0.68
0.77
2013
2014
2015
2016
2017
TIER
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 77 >
Tier 2 events also follow a downward trend, down from 37 records in
2016 to 31 in 2017. The accident rate per million hours worked dropped
Risk Rating
Always focused on the continuous improvement of our processes and the safe-
from 0.90 to 0.74, down 18%.
TIER 2 - NUMBER OF ACCIDENTS
91
49
40
37
31
2013
2014
2015
2016
2017
TIER 2 - RATE OF ACCIDENTS
(NUMBER OF ACCIDENTS X 1MM/MHW)
2.20
1.13
1.17
0.90
0.74
2013
2014
2015
2016
2017
Regarding Tier 3 events, considered small events or incidents, there
has been an increase in the number of occurrences in recent years. How-
ever, this increase is a result of an improvement in the registration sys-
tem, a stronger process safety culture, and the Members’ commitment
to reporting any type of diversion that causes a loss of primary contain-
ment, seeking to reduce the number of small events through the critical
analysis of small occurrences.
ty of our plants and Members, in 2017 we continued to advance our Risk Rating
results at the audited units. Of the 14 plants that were audited by the insurance
company in 2017, all increased their scores compared to those obtained in 2016.
Today, all plants meet the international standard at the “Standard” level, with half
of them at “Above Standard.” It is worth noting that Braskem does not have a goal
for this indicator.
PLANTS THAT HAVE ACHIEVED THE
INTERNATIONAL STANDARDS “STANDARDS”
AND “ABOVE STANDARD” - RISK RATING
18
16
10
12
13
15
14
14
2014
2015
2016
2017
Standard
Above Standard
New risk matrix
Throughout the year 2016, the organization promoted a
thorough review of its risk matrix, with global alignment
in all its business units worldwide, and based on a global
benchmark in risk acceptability criteria. The new matrix was
put into practice in 2017. This was Braskem’s first truly global
work, which required all units to review their greatest risks
in a more rigid, structured manner, associated with the new
global risk matrix, allowing for greater integration with prin-
ciples of health, safety, and the environment. This new ma-
trix is also accompanied by a new risk assessment manage-
ment system, which continuously monitors whether all risks
are being duly mitigated. Today, the matrix also reflects sev-
eral intangible, reputational risks that may have an impact
on Braskem’s image before its Clients ─ work that positions
Braskem as a global benchmark in the industry.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 78 >
Product Safety 103-2, 103-3, 416-1, 416-2, 417-1, 417-2
Product safety is very much in line with Braskem’s continu-
Another important point in 2017 was the structuring of
ous evolution. That is why in 2017 we conducted a new in-
two new systems: an online platform allowing the visualiza-
ternational benchmark process in order to further reinforce
tion of raw materials in real time, and an emergency com-
the structure of resources and systems in the area. As a re-
munication channel associated with global exports. Based in
sult, we have expanded our team’s dedication to issues such
as regulation of application and the review of all new FISPQ18
(Emergency Forms) for the chemicals inventory that were
the United States, this system stores all information about
our products and works as a primary service for our clients
around the world. It is worth mentioning that every year we
readjusted in Brazil. The products that will be evaluated re-
carry out audits related to product, information services, and
garding impact on health and safety are defined periodical-
labeling non-compliance at our plants around the world, and
ly. In 2017, the focus was on inputs used in dyes, food, and
in 2017, as in previous years, there were no cases reported.
healthcare, and there were no cases of non-compliance with
regulations that resulted in a fine or penalty.
18 In the United States, the Company uses the Material Safety Data Sheet (MSDS) and
Safety Data Sheet (SDS), as required by the Occupational Safety and Health Administra-
tion (OSHA) and the relevant EU directive (REACH).
In 2017 we conducted a new international
benchmark process in order to further
reinforce the structure of resources in the
enforcement and revision of regulations.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 79 >
Water Efficiency
103-2, 103-3, 303-1, 303-3, 306-1
With the supply crises increasingly fre-
quent in the country, water is becoming
a scarce resource. So, responsible water
use and conservation is also increasing.
Since 2002, we have invested BRL 280
million in water efficiency projects and
to treat effluents for reuse in our oper-
ations. We are aware that industry con-
sumes about 20% of the water used
Twice on the A List
For the first time, Braskem is listed on CDP WATER’s “A List,” which recognizes the best publicly traded companies in the world
regarding management of the use of the natural resource water. We were the only Brazilian company to obtain the highest
score in the Climate (for the second consecutive time) and Water (this for the first time) rankings, an achievement that po-
sitions us among the 25 companies, in the universe of 2,452 companies evaluated worldwide, to the get the A score in both
rankings, simultaneously. Today we are part of the select group of 1% of the companies in the world that joined the “A-List” of
CDP Climate and CDP Water in 2017.
in the world and, with this in mind, we
operations of the Mexico Complex, with
map the operations that are in areas
target of 25% set for 2020 and, for the
work continuously to improve our pro-
a reuse system inherent to the original
with potential risk of water shortage
first time, we are part of CDP WATER’s “A
cesses with innovation and the search
project design. In 2017, a total of 17% of
today and until the year 2040. With
List,” which recognizes the best publicly
for sustainable development. Among
the water consumed at the Complex
this, it is possible to plan how to best
traded companies in the world regarding
our various initiatives, we highlight the
was reused water.
address risks and opportunities iden-
management of the use of the natural
Aquapolo Project, at ABC Paulista. In
Over the last two years, we have
tified, invest in risk areas, and extend
resource water.
partnership with Sabesp, the project
studied the risk of water scarcity at
this benefit to our value chain (Cli-
broadened Braskem’s water reuse index
eight watersheds, four of which were
ents and Suppliers) in the search for
in the region to 97% of the total. An-
completed in 2016, and the other four
alternative supply sources. The per-
other example of success is the start of
in 2017. These studies allowed us to
centage of water reuse exceeded the
For more information, go to
www.cdp.net, in Search Responses.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 80 >
SMALLER LOSS, MORE WATER MOVEMENT
In order to encourage concrete actions toward reducing
waste in the distribution system, the “Smaller Loss, More
Water” Movement structured two areas of work: public
policies and engagement.
Initiative of the Brazil Network of the UN Global Com-
pact, led by Braskem and Sanasa (Water Supply and San-
itation Company in Campinas), the movement is aligned
with the Sustainable Development Goals (SDG 6 and 17),
and seeks the commitment of public agents to improve
the water management and the urban distribution sys-
tem in the country.
The loss of treated water during distribution
reaches an average index of 38%.
In 2017, we promoted development of the study car-
ried out by Instituto Trata Brasil on “Water loss during
distribution as an aggravating factor to the vulnerabili-
ty of watersheds.” The study highlights that the level of
physical water losses in distribution systems – today
and in the future – represents a risk to water access for
all users of the watersheds. Published in the same year,
the study was disclosed in the industry federations FIEB,
FIESP, and FIRJAN.
CONSUMPTION
In 2017, water consumption (3.98 m³/t) in-
recycles and, consequently, the greater the
creased by 1.4% over the previous period, but
water consumption. Water recirculation in
still 2.5% below the goal set for the year. This
cooling processes concentrates substances
increase was due to Braskem Idesa being
during this cycle. The purer the water used,
included in the Braskem ecoindicators, and
the more cycles can be performed and the
the quality of the water captured for use in
less water replacement will be required. In
that unit causes greater consumption. Wa-
addition, several factors contributed to im-
ter quality impacts the number of times it
proving the Company’s performance in wa-
may be recirculated in cooling processes. The
ter consumption, such as adjustments and
worse the quality, the lower the number of
improvements in cooling tower cycles, im-
plementation of measures to reduce con-
sumption due to the water crisis, minimiza-
tion of losses, and elimination of leaks.
WATER CONSUMPTION – m3/t
4.30
4.14
4.16
4.05
3.93
-4%
3.98
...
2002
2013
2014
2015
2016
2017
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 81 >
REUSE
Today, we have in place a series of projects and goals linked to reducing wa-
ter consumption, and we constantly carry out evaluations to avoid any impacts
from a possible water shortage. Among the main initiatives are improvement
processes for the reuse of water from the production units, a percentage that
has been growing over the last three years. In 2017, a total of 25.8% of all water
consumed in our operations came from reuse processes, 15.4% of which result-
ed from process improvement (investment) and 10.4% from original plant oper-
ation (born with the plant design).
WATER REUSE
29.5%
28.2%
25.1%
23.4%
25.8%
11.0%
11.0%
9.5%
8.3%
10.4%
18.5%
17.2%
15.6%
15.1%
15.4%
2013
2014
2015
2016
2017
Inherent Reuse**
Process Improvements*
*Reuse in Process Improvements is all that comes from modifications at current units, including or improving
processes.
** Inherent reuse is everything that was born with the industrial unit and is part of the original plant process.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 82 >
EFFLUENTS
Our eco-efficiency in generating liquid effluents (1.06 m³/t) improved by 4.2%
compared with 2016, and was 7.9% better than the goal for 2017, our best histor-
ical result for the third consecutive year, demonstrating the effectiveness of the
actions taken to improve the Company’s water efficiency. The greatest impacts
on this result were the low rainfall rates in some regions, reduced blowdown19 due
to improvements in cooling tower concentration cycles, and scheduled shut-
downs for maintenance and cleaning.
More innovation.
Less waste.
Since September 2017, our factories have been
using new technology that allows us to reduce
the consumption of water by thousands of liters
per month. Installed in bathrooms, the Piipee is
a device that saves up to 75% of water in toilets
bowls. The device uses a biodegradable additive,
19 Blowdown is the water intentionally wasted to avoid the concentration of impurities during the continuous evaporation.
removing odor and color from urine, avoiding the
GENERATION OF LIQUID EFFLUENTS – m³/t
1.94
1.22
...
need to flush the toilet.
It is estimated that, on average, 7 to 20 liters
of drinking water are wasted down the drain when
toilet is flushed. The innovation implemented by
the Company significantly reduces this consump-
tion. In 2016, the project was part of our entrepre-
neur acceleration program – Braskem Labs Scale.
Piipee – the company responsible for developing
the solution – estimates that the technology has
the potential to save over 60 million liters of water
and over BRL 722,000 per year in all of Braskem’s
2002
2013
2014
2015
2016
2017
plants in Brazil.
1.281.151.111.06-45%Variation
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 83 >
Energy Efficiency
103-2, 103-3 , 302-1, 302-3, 302-4
The same way that we seek to reduce our impacts on water
In Brazil, the initiative that presented the most gains was
consumption, we work every day in search for innovative and
implemented in PE 4 (Rio Grande do Sul), which, with reduced
sustainable solutions (from an environmental and economic
decompositions in tubular technology high-pressure poly-
standpoint) that help improve efficiency and reduce the en-
ethylene plants, had a gain of BRL 68.8 million. And, through
ergy consumption of our production units. In 2017, our energy
furnace optimization, UNIB 2 (Rio Grande do Sul) reduced its
consumption (10.56 GJ/t) increased 3.0% compared with 2016,
energy consumption by 938,591 GJ.
but was 2.4% better than the goal for 2017. The increase in the
indicator was due to Braskem Idesa (Mexico) being included in
our ecoindicators, and intensity of energy consumption at the
new plant is higher than the Braskem average.
Initiatives toward
process improvement
Economic gain
(BRL millions)
ENERGY CONSUMPTION – GJ/t
Improvements in production
processes (except furnaces)
and sales of electricity
(in millions of reais)
Furnace optimization
Variation
-11%
11.90
...
10.67
10.74
10.49
10.25
10.56
2002
2013
2014
2015
2016
2017
Reduction in steam
consumption
Boiler and turbine
improvements
TOTAL
104.3
71.2
35.3
9.6
220.4
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 84 >
ENERGY MATRIX
In recent years, we have seen an increase in the share of natu-
in particular, we saw a decrease in the share of other external fuels
ral gas in our energy matrix due to the start and stabilization of
in the energy matrix, also influenced by the increase in consump-
Braskem Idesa operations, a major consumer of this fuel. In 2017
tion of natural gas at Brazilian units due to market opportunities.
PERCENTAGE OF CONSUMPTION BY TYPE OF ENERGY IN TERMS OF TOTAL CONSUMPTION
Electrical
Natural gas
2013
2014
2015
2016
2017
9.9%
10.2%
9.0%
9.0%
9.9%
8.9%
13.0% 16.0% 20.0% 22.4%
Other external fuels (mainly oil and coal)
4.8%
5.2%
5.5%
6.0%
4.7%
Residual internal fuels from the petrochemical process
76.3% 71.6% 68.8% 65.0% 62.9%
The percentage of renewable energy consumption in
Braskem’s energy matrix is strongly influenced by the operation
of the Brazilian electricity system. The increasing operation of
thermoelectric plants in Brazil has reduced this indicator.
PERCENTAGE OF RENEWABLE ENERGY
CONSUMPTION IN TERMS OF TOTAL
ENERGY CONSUMPTION
2013
2014
2015
2016
2017
9.39%
7.17%
8.26%
7.44%
7.60%
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 85 >
Waste Management 103-2, 103-3, 301-1, 301-2, 306-2
We believe that continuous invest-
adjusted annually for a period of five
2017. This good result was due to plant
Waste Allocations (t)
2013
2014
2015
2016
2017
ment in renewable raw materials and
years. In 2017, the generation of solid,
initiatives toward discovering new
correct management of all waste
liquid and sludge waste (2.13 kg/t) was
ways to reuse waste, changes in treat-
generated in our production process
reduced by 1.4% compared with 2016,
ment, and improvements in cleaning
is essential to the maintenance and
and was 4.5% better than the goal for
and maintenance processes.
Recycling
19,858
7,930
4,628
7,371
6,830
Recovery (including energy)
3,169
5,424
3,975
7,247
6,370
Sanitary/industrial landfill
11,152
21,493
2,804
9,146
8,980
On-site storage
187
748
1,859
1,303
455
sustainable development of our busi-
ness. That’s why we maximize reuse
at all of our industrial plants through
a process known as chain return ─ the
equivalent to internal recycling. For
the future, we are investing in energy
and chemical recycling.
Some of the main non-renewable
direct materials used by Braskem are
naphtha, condensate, ethane, pro-
pane, LRH, and sodium chloride. We
also use ethanol made from sugarcane
to produce ethylene from a renewable
source, thereby reducing our demand
for non-renewable resources.
We have strict goals for total waste
generation (hazardous and non-haz-
WASTE GENERATION – kg/t
5.78
Variation
-63%
Incineration
Reuse
Composting
17,263
20,408
1,713
8,423
8,199
290
306
238
662
739
274
482
475
505
299
2.30
2.20
...
2.16
2.13
2.01
Underground waste injection
8,568
7,960
0
1,931
1,756
Other*
TOTAL
9,650
5,000
3,700
17,022
5,258
70,443
69,863
19,692
53,400
38,652
* Other: autoclave, vacuum thermal demercuration, co-processing of waste in clinker rotary kilns for cement manufacture, soil decon-
tamination by thermal desorption
ardous waste) that are defined and
2002
2013
2014
2015
2016
2017
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 86 >
Climate Change 103-2, 103-3, 201-2, 305-1, 305-2, 305-3, 305-4, 305-5, 305-6, 305-7
Studies conducted by scientists at the Intergov-
ernmental Panel on Climate Change (IPCC) show
that a “carbon neutral” society will be needed
as early as this century in order to keep climate
change at acceptable levels. We believe that the
companies play an essential role in mitigating and
adapting to the effects of climate change. There-
fore, being among the best of the world’s major
chemical industries in terms of greenhouse gas
(GHG) emission intensity and an important GHG
emissions sequester due to the use of renewable
raw materials are initiatives that are part of our
macro goals for sustainable development.
In 2017, the macro goal for
climate change had already
evolved 100% compared
to the goal set for 2020.
For the 7th consecutive
year, Braskem’s most
recently published GHG
emissions inventory
was awarded the Gold
category in the Brazilian
GHG Protocol Program.
For the second consecutive
time, we are part of CDP
CLIMATE’s “A List”.
For the sixth consecutive
time, Braskem has been
selected to be part of the
Efficient Carbon Index (ICO2)
portfolio of B3 (Brazil).
In line with our strategy to contribute to strength-
ening this agenda in the business network, since 2008
we have integrated the Brazilian Network Commit-
tee of the Global Compact and, since 2013, the LEAD
group of the Global Compact, in addition to being
part of the Green Industry Platform initiatives of
UNIDO, and Caring for Climate of the Global Com-
pact. We also actively participated in the Companies
for Climate initiative, a business platform created
by the Getúlio Vargas Foundation (FGV) Center for
Sustainability Studies and, in 2017, we began to coor-
dinate the Technical Group on Energy and Climate of
the Brazilian Network of the UN Global Compact.
Also in 2017, we began three pilot studies with
GVces, the first to construct our MACC (Margin-
al Cost Reduction Curve), searching for low carbon
investment options, the second in the adaptation
plan, testing the methodology of climate risk man-
agement during the partnership and engagement
stages; and the third for economic valuation of eco-
system services, focusing on water resources.
For more information, go to
www.cdp.net, in Search Responses.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 87 >
CARBON PRICING
To manage risk and identify opportu-
the price of carbon due to the fulfillment
ADAPTING TO
CLIMATE CHANGE
After identifying and prioritizing po-
nities regarding carbon pricing, in 2016
of the objective, which is to stimulate
tential climate opportunities and risks
we implemented an internal valuation
new projects with positive impacts, that
in all operations in Brazil, an adap-
system (shadow price method) that is
is, reduced emissions.
tation plan was created with actions
part of our investment decision-mak-
After standardizing the investment
to mitigate or reduce all potential
ing process. Used for the second year in
process in global operations, the tool
climate risks classified as “high.” For
operations in Brazil, these criteria sup-
was configured for use in all units in the
international operations in the Unit-
ported the 2018 investment portfolio
countries where the Company oper-
ed States, Germany, and Mexico, the
decision. In the current effectiveness
ates ─ today the focus is on preparing the
main potential scenarios and impacts
monitoring phase, the results were an-
teams in Mexico, USA, and Germany to
were validated, as were the respec-
alyzed, making it possible to verify the
begin using the methodology utilizing
tive mitigation actions for the most
adequacy of the initial value defined for
the lessons learned in Brazil.
relevant risks. There are currently 33
EVENT/CLIMATE IMPACT
Intense rain and
electrical discharges
Water
shortage
Hurricanes and
extratropical cyclones
Impact on energy
generation
22
14
33
12
32
11
8
5
UNDERSTAND
IMPACT
CALCULATE
CARBON
FOOTPRINT
REDUCE
EMISSIONS
CREATE
PLATFORM
DETERMINE
INTERNAL
PRICE
APPLY
PRICE
MONITOR
PERFORMANCE
in Brazil, the main ones related to wa-
ter scarcity, floods, impact on energy
generation, and hurricanes and ex-
tratropical cyclones.
Braskem monitors the
imple-
mentation of this plan by means of
indicators using the Getúlio Vargas
8
14
16
6
Number of planned actions
for risk mitigation
Number of industrial units with
high potential risk – year 2040
defined actions or actions in progress
Flooding
Others
It is worth mentioning that Braskem also participates in Emission Trading Simu-
ability Studies Center methodology
method for developing partnerships
lation (SCE) initiatives in Brazil and Mexico, a constructive experiment in the carbon
as a benchmark. We are currently de-
and engaging several public and pri-
market for debate and generation of knowledge, expanding the contribution of com-
veloping a pilot program with FGV fo-
vate stakeholders involved in adapta-
panies to proposals directed toward the government.
cused on the implementation phase
tion actions.
Foundation (FGV-SP, Brazil) Sustain-
of the plan, seeking to consolidate the
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 88 >
Our corporate
inventory of
emissions takes into
account all categories
in Scopes 1, 2, and 3 in
100% of operations.
GHG EMISSIONS
INVENTORY
Our corporate inventory of GHG emissions
takes into account all categories in Scopes
1, 2, and 3 in 100% of operations. In 2017, we
reduced our Scope 1+2 emission intensi-
ty indicator. This reduction was mainly due
to initiatives to mitigate emissions, among
which energy reduction/recovery projects
and operational optimization were high-
lighted. This is the best Scope 1+2 emissions
intensity indicator in the historic series,
achieving in advance Braskem’s 2020 GHG
emissions intensity goal.
CARBON INTENSITY
(SCOPE 1) – tCO2e/t
Variation
2008/2017
-21%
0.659
0.578
0.564
0.540
0.585
0.519
...
2008
2013
2014
2015
2016*
2017
*Mexico’s emissions are included in this amount.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 89 >
With the start of the new plants in Mexico in 2016, the re-
sults of Scope 1 and Scope 2 emissions for 2017 showed a re-
duction after stabilization of the Mexican operations. Braskem
is evaluating the change in the base year and its medium and
long-term goals.
Total emissions related to Scope 120 was 10,182,558 tCO2e.
Scope 221 emissions were altered due to the approximately
11% increase in the average national CO2 grid emission factor
in 2017, reaching 1,072,713 tCO2e. With its electricity suppliers,
Braskem seeks statements of the purchase of renewable en-
ergy in order to reduce Scope 2 emissions from part of the
energy obtained by bilateral contracts.
20 Direct GHG emissions
21 Indirect emissions through the purchase of electricity
CARBON INTENSITY
(SCOPES 1 AND 2) – tCO2e/t
Variation
2008/2017
-21%
0.721
0.630
0.630
0.604
0.641
0.573
GHG EMISSIONS
(SCOPE 1 AND 2) - ktCO2e
Variation
2016/2017
-4%
GHG EMISSIONS
(SCOPE 3) - tCO2e
959
874
1,088
1,077
1,038
1,073
Variation
2016/2017
12%
20,928
18,721
15,804
12,000
11,534
11,351
9
9
1
,
0
1
...
3
4
7
9
,
4
8
3
9
,
0
4
1
,
9
7
2
7
0
1
,
3
8
1
,
0
1
...
10000
8000
6000
4000
2000
0%
2008
2013
2014
2015
2016*
2017
*Mexico’s emissions are included in this amount.
Scope 1
Scope 2
*Mexico’s emissions are included in this amount.
...
Scope 322 emissions were impacted mainly by the broad-
ening of the chemical inputs reported in Category 1 – Goods
and Services purchased, and by the expansion of data report-
ed on the transportation of finished product paid by Braskem.
2008
2013
2014
2015
2016*
2017
*Mexico’s emissions are included in this amount.
22 Other indirect GHG emissions
Initiatives to
reduce emissions
We work steadily on the search
for solutions to reduce the var-
ious impacts that our oper-
ations may cause. Regarding
greenhouse gas emissions, the
main initiatives in 2017 were
related to the reduction and/
or recovery of energy and op-
erational optimization (such as
reducing loss, modifying op-
erating conditions, and clean-
ing equipment). In Duque de
Caxias, we highlight the devel-
increase the reliability of indus-
trial plants, in order to reduce
GHG emissions associated
with production shutdowns.
inventories on
Read the Braskem
the Public Registry database of the
Brazilian GHG Protocol Program:
registropublicodeemissoes.com.br
(in Portuguese).
2008
2013
2014
2015
2016*
2017
opment of an action plan to
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 90 >
CARBON CREDITS IN THE CORPORATE VEHICLE FLEET
EMISSIONS IN LOGISTICS
We have been conducting our GHG
material acquisition, and others.
exceeds 95% in volume of the fleet
In 2016, the Logistics area of the
emissions inventory in Scope 3 (indi-
In 2017, we began participating in
supply mix.
Polyolefins Business Unit, along with
rect emissions) since 2011. Over the
an initiative to generate carbon cred-
Braskem became eligible for the
the Sustainable Development area,
years, we have significantly evolved
its by replacing gasoline with ethanol
monitoring stage of this
initiative
created a tool enabling practical and
actions to engage our chain and iden-
in our fleet of corporate vehicles. This
when it reached ethanol supply over
rapid measurement of Greenhouse
tify initiatives to reduce these emis-
action, conducted by the Sustainable
the required percentage (95%) in Oc-
Gas Emissions in the logistics trans-
sions with the support of areas such
Development and Personnel Services
tober. This achievement opens up the
port of finished products.
as Procurement, Logistics, Personnel
team, guarantees the generation of
prospect of getting our first carbon
In 2017, Braskem continued to
Services, Information Technology, raw
carbon credits if the ethanol supply
credits in history as early as 2018.
monitor emissions from the logis-
EVOLUTION OF THE ETHANOL SUPPLY INDICATOR IN THE FLEET
97.59%
96.75%
95.46%
100%
99%
98%
97%
96%
95%
94%
93%
92%
91%
90%
93.60%
Set 17
Out 17
Nov 17
Dez 17
tics transport of finished products.
For the year, we highlight the imple-
mentation of a monthly monitoring
system for Greenhouse Gas (GHG)
Emission indicators, carried out by
the Sustainable Development area,
in addition to the inclusion of the
calculation of the increase and re-
duction of emissions in logistics ini-
tiatives. From now on, with the his-
torical results from 2016 and 2017,
actions will be taken towards a criti-
cal analysis and future identification
of actions to reduce emissions.
95%
Ethanol
Goal
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 91 >
SUPPLIER ENGAGEMENT
IN CLIMATE CHANGE
For six years, we have developed, with suppliers, volunteer en-
gagement initiatives focused on sustainability. In addition to
helping us understand the impacts of our chain, this work is a
way to positively influence our stakeholders on issues such as
climate and water management.
To this end, we develop some initiatives annually with the
support of the CDP Supply Chain program, such as aware-
ness actions, incentive to developing and reporting emis-
sions inventory, and identifying risks and opportunities. We
then use the data reported by our Suppliers in order to eval-
uate their evolution and improve the management involving
one or both companies, improve our relationship with these
Suppliers, and increase the network of companies involved in
sustainable actions.
As a result, in 2017, there was an increase in the number
of Suppliers invited and engaged in the Climate and Water
Supply programs. Due to the expansion of Braskem’s Scope 3
report, it is noted that despite the increase in the percentage
of Suppliers engaged through the program, the percentage of
Scope 3 coverage remained stable.
SUPPLIER ENGAGEMENT - CLIMATE CHANGE
250
200
150
100
50
0
60%
57%
182
46%
42%
31
13
2012
0%
39
18
1%
2013
42
25
9%
2014
104
11%
2015
66%
208
138
36%
177
54%
37%
96
2016
2017
70%
60%
50%
40%
30%
20%
10%
0%
For more information, go to www.cdp.net,
in Search Responses.
Number of Suppliers invited
Number of Suppliers engaged
% of Supplier adherence
% coverage of Scope 3
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 92 >
OTHER EMISSIONS 305-6, 305-7
EVOLUTION OF OZONE DEPLETING SUBSTANCES (ODS) EMISSIONS
In addition to greenhouse gases, we also
ODS*
manage the emission of other types of
substances associated with our produc-
Tons of CFC-11 Equivalent
tion, such as nitrogen oxides (NOx) and sul-
* Not reported in the period.
2013
180.5
2014
48.6
2015
55.3
2016
2017
3.0
1.7
fur oxides (SOx), Volatile Organic Compou-
nds (VOCs), and others. In general, in 2017
they remained at the same levels. Special
highlight for reduced SOx emissions, mainly
impacted by coal burning below plan in Rio
Grande do Sul.
NOX
SOX
EVOLUTION OF EMISSIONS OF SOX, NOX, AND OTHER SIGNIFICANT SUBSTANCES
Emission *
2016
2014
2013
2015
12,157
11,421
9,546
9,651
6,582
11,509
4,503
3,137
1,670
2017
9,216
Volatile Organic Compounds
2,707
3,881
3,808
6,139
6,858**
Particulate Matter
Toxic Air Pollutants***
Other****
1,547
1,225
911
549
97
652**
860
531
868
677
6,108
6,190
14,495**
4,145
4,746
* The methodologies used are recommended by state environmental agencies. Where there is no measurement, estimates (emission factors) based on rec-
ognized methods, such as AP-42 from USEPA, are used.
** The plants have been broadening their assessments. This explains the increase in these parameters.
*** Includes Toxic Air Pollutants and HAP
**** Includes total hydrocarbons and carbon monoxide.
Even with the start of operation of Braskem Idesa in Mexico, and with the respective increase in produc-
tion, there is stability and even a downward trend in the emission of some pollutants.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 93 >
SUMMARY OF
GRI CONTENT
STANDARDS
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 94 >
Summary of GRI content standards 102-55
GRI Standard Disclosure
Page and/or disclosure
GENERAL DISCLOSURES
102-1 - Name of the organization
102-2 - Activities, brands, products and services
102-3 - Location of headquarters
102-4 - Location of operations
2
8
102
10
102-5 - Ownership and legal form
GRI 102:
general
Disclosures
102-6 - Markets served
102-7 - Scale of the organization
102-8 - Information on employees
and other workers
102-9 - Supply chain
102-10 - Significant changes to the
organization and its supply chain
Braskem was formed in August 2002
by the merge of six Odebrecht Group
companies and the Mariani Group.
We are a publicly traded corporation
with several industrial units in Brazil,
the United States, Germany, and
Mexico (through a joint venture with
Idesa). Visit www.braskem-ri.com.br/
ownership-structure for more details.
10
10
45
62
6
There was no significant change during
the period covered by the report.
Principles
of the
Global
Compact
GRI Standard Disclosure
Page and/or disclosure
102-11 - Precautionary Principle or approach
GRI 102:
general
Disclosures
102-12 - External initiatives
102-13 - Participation in associations
102-14 - Statement from senior decision-maker
102-16 - Values, principles, standards,
and norms of behavior
102-17 - Mechanisms for advice
and concerns about ethics
102-18 - Governance structure
102-23 - Chair of the highest governance body
As a principle and in accordance with
the Health, Safety, Environment, Quality,
and Productivity Policy, Braskem does
not produce, handle, use, market,
transport, or dispose of any product if
unable to do so safely, with a minimum
impact on the environment.
12, 13
12
4 a 6
15
21
15
15
Principles
of the
Global
Compact
10
10
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
GRI Standard Disclosure
Page and/or disclosure
Principles
of the
Global
Compact
GRI Standard Disclosure
Page and/or disclosure
< 95 >
Principles
of the
Global
Compact
102-40 - List of stakeholder groups
Members (including Company
leaders), Funders, Clients, Suppliers,
Academia, Local Stakeholders (NGOs,
Community, Trade Entities), Opinion
Formers (Government, Press),
and the General Public. Visit www.
braskem.com.br/material-issues-
assessement for more details.
102-41 - Collective bargaining agreements
54
3
102-42 - Identifying and selecting stakeholders
GRI 102:
general
Disclosures
102-43 - Approach to stakeholder engagement
102-44 - Key topics and concerns raised
102-45 - Entities included in the
consolidated financial statements
The identification and selection of our
stakeholders for engagement was based
on groups that play a role of influencers,
enablers, impacting, and benefited by
the relationship with the Company.
Visit www.braskem.com.br/material-
issues-assessement for more details.
We periodically evaluate our relevant
aspects in order to support our
strategy to contribute to sustainable
development. The most recent
evaluation occurred in 2013, and will be
renewed in 2018. Visit www.braskem.
com.br/material-issues-assessement
to learn about our materiality matrix.
www.braskem.com.br/
material-issues-assessement
25
102-46 - Defining report content
and topic Boundaries
102-47 - List of material aspects
102-48 - Restatements of information
102-49 - Changes in reporting
102-50 - Reporting period
102-51 - Date of most recent report
102-52 - Reporting cycle
102-53 - Contact point for questions
regarding the report
102-54 - Claims of reporting in
accordance with the GRI Standards
102-55 - GRI content index
102-56 - External assurance
GRI 102:
Disclosures
gerais
www.braskem.com.br/
material-issues-assessement
www.braskem.com.br/
material-issues-assessement
There was no significant change during
the period covered by the report.
There was no significant change during
the period covered by the report.
January 1 to December 31, 2017.
2016
Annual
102
This report was prepared in accordance
with GRI Standards: Core option.
94 a 101
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.
MATERIAL TOPICS
ECONOMIC PERFORMANCE
Macro Goal: Economic and Financial Results
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
www.braskem.com.br/
material-issues-assessement
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
24 a 34
24 a 34
< 96 >
Principles
of the
Global
Compact
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
Principles
of the
Global
Compact
7
6
6
GRI Standard Disclosure
Page and/or disclosure
201-1 - Direct economic value
generated and distributed
GRI 201:
Economic
performance
201-2 - Financial implications and other risks
and opportunities due to climate change
201-4 - Financial assistance
received from government
MARKET PRESENCE
Macro Goal: Local development
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
GRI 202:
Market
Presence
103-3 - Evaluation of the management approach
202-1 - Ratios of standard entry level wage by
gender compared to local minimum wage
202-2 - Proportion of senior management
hired from the local community
INDIRECT ECONOMIC IMPACTS
Macro Goal: Local development
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 203:
Indirect
Economic
Impacts
203-1 - Infrastructure investments
and services supported
24
86 a 92
69
www.braskem.com.br/
material-issues-assessement
43 a 54
43 a 54
46
46
www.braskem.com.br/
material-issues-assessement
55 a 59
55 a 59
55 a 56
GRI Standard Disclosure
Page and/or disclosure
PROCUREMENT PRACTICES
Macro Goal: Local development
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
204-1 - Proportion of spending on local suppliers
GRI 103:
Management
Approach
GRI 204:
Procurement
Practices
ANTI-CORRUPTION
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 205: Anti-
corruption
205-3 - Confirmed incidents of
corruption and actions taken
ANTI-COMPETITIVE BEHAVIOR
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
60 a 66
60 a 66
61
www.braskem.com.br/
material-issues-assessement
16 a 18
16 a 18
There were no confirmed cases of
corruption during the period.
10
www.braskem.com.br/
material-issues-assessement
16 a 18
16 a 18
GRI 206: Anti-
competitive
Behavior
206-1 - Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
Nothing to report. Braskem does
not have any such process.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
GRI Standard Disclosure
Page and/or disclosure
MATERIALS
Macro Goal: Renewable resources
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
www.braskem.com.br/
material-issues-assessement
58, 71 a 74, 85
103-3 - Evaluation of the management approach
58, 71 a 74, 85
301-1 - Materials used by weight or volume
301-2 - Recycled input materials used
301-3 - Reclaimed products and
their packaging materials
GRI 301:
Materials
ENERGY
Macro Goal: Energy efficiency
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
85
85
58
www.braskem.com.br/
material-issues-assessement
71 a 74, 83 a 84
103-3 - Evaluation of the management approach
71 a 74, 83 a 84
GRI 302:
Energy
302-1 - Energy consumption
within the organization
302-3 - Energy intensity
302-4 - Reduction of energy consumption
83 a 84
83 a 84
83 a 84
Principles
of the
Global
Compact
7, 8
8
8
7, 8
8
8, 9
< 97 >
Principles
of the
Global
Compact
GRI Standard Disclosure
Page and/or disclosure
WATER
Macro Goal: Water efficiency
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
303-1 - Water withdrawal by source
303-3 - Water recycled and reused
GRI 303: Water
BIODIVERSITY
Macro Goal: Strengthening of practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 304:
Biodiversity
304-2 - Significant impacts of activities,
products, and services on biodiversity
304-4 - IUCN Red List species and national
conservation list species with habitats in areas
affected by the organization's operations
EMISSIONS
Macro Goal: Energy efficiency
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
www.braskem.com.br/
material-issues-assessement
71 a 74, 79 a 82
71 a 74, 79 a 82
79 a 82
79 a 82
www.braskem.com.br/
material-issues-assessement
71 a 74
71 a 74
In 2017, there were no significant
impacts on biodiversity (valid for
Mexico, where this aspect is material).
Two species (Ceratozamia
miqueliana and Zamia loddigesii).
www.braskem.com.br/
material-issues-assessement
71 a 74, 86 a 92
103-3 - Evaluation of the management approach
71 a 74, 86 a 92
7, 8
8
8
8
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 98 >
GRI Standard Disclosure
Page and/or disclosure
305-1 - Direct (Scope 1) GHG emissions
305-2 - Energy indirect (Scope 2) GHG emissions
305-3 - Other indirect (Scope 3) GHG emissions
GRI 305:
Emissions
305-4 - GHG emissions intensity
305-5 - Reduction of GHG emissions
305-6 - Emissions of ozone-
depleting substances (ODS)
305-7 - Nitrogen oxides (NOX), sulfur oxides
(SOX), and other significant air emissions
EFFLUENTS AND WASTE
Macro Goal: Safety
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
86 a 92
86 a 92
86 a 92
86 a 92
86 a 92
86 a 92
86 a 92
www.braskem.com.br/
material-issues-assessement
71 a 74, 79 a 82, 85
103-3 - Evaluation of the management approach
71 a 74, 79 a 82, 85
GRI 306:
Effluents
and waste
306-1 - Water discharge by quality and destination
306-2 - Waste by type and disposal method
79 a 82
85
ENVIRONMENTAL COMPLIANCE
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
www.braskem.com.br/
material-issues-assessement
16 a 18, 71 a 74
103-3 - Evaluation of the management approach
16 a 18, 71 a 74
Principles
of the
Global
Compact
7, 8
7, 8
7, 8
8
8, 9
7, 8
7, 8
8
8
Principles
of the
Global
Compact
8
GRI Standard Disclosure
Page and/or disclosure
GRI 307:
Environmental
Compliance
307-1 - Non-compliance with
environmental laws and regulations
SUPPLIER ENVIRONMENTAL ASSESSMENT
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
Nothing to report. We had assessments
during the period, both environmental
and regulatory; however, the Company
was not definitively ordered to pay
fines or to comply with non-monetary
sanctions during the period in question.
For the purpose of this report, the same
materiality criteria used in the Reference
Form established by the Brazilian
Securities and Exchange Commission
("CVM") was adopted, pursuant to CVM
Instruction 480/2009 ─ BRL 60 million.
For environmental issues, the amount
of BRL 10 million was considered.
www.braskem.com.br/
material-issues-assessement
71 a 74, 60 a 66
103-3 - Evaluation of the management approach
71 a 74, 60 a 66
308-1 - New suppliers that were screened
using environmental criteria
60 a 66
8
GRI 308:
Supplier
Environmental
Assessment
EMPLOYMENT
Macro Goal: Economic and Financial Results
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
www.braskem.com.br/
material-issues-assessement
43 a 54
< 99 >
Principles
of the
Global
Compact
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
Principles
of the
Global
Compact
6
6
GRI Standard Disclosure
Page and/or disclosure
GRI 103:
Management
Approach
GRI 401:
Employment
103-3 - Evaluation of the management approach
43 a 54
401-1 - New employee hires
and employee turnover
401-2 - Benefits provided to full-time
employees that are not provided to
temporary or part-time employees
47, 51 a 52
53
401-3 - Parental leave
In Brazil, we track the number of
maternity leaves and the percentage
of termination up to one year after
returning from the leave. In 2017, of the
69 Members who took maternity leave,
61 remained in the company after one
year, a return rate of 88%. The paternity
leave indicator is not monitored. In other
countries where we have operations,
this indicator is not yet monitored.
OCCUPATIONAL HEALTH AND SAFETY
Macro Goal: Safety
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
71 a 74, 75
71 a 74, 75
GRI Standard Disclosure
Page and/or disclosure
GRI 403:
Occupational
Health and
Safety
403-2 - Types of injury and rates of injury,
occupational diseases, lost days, and absenteeism,
and number of work-related fatalities
403-4 - Health and safety topics covered
in formal agreements with trade unions
74
54
TRAINING AND EDUCATION
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
GRI 404:
Training and
Education
103-3 - Evaluation of the management approach
404-2 - Programs for upgrading employee
skills and transition assistance programs
404-3 - Percentage of employees
receiving regular performance and
career development reviews
DIVERSITY AND EQUAL OPPORTUNITY
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
43 a 54
43 a 54
53
50-52
6
www.braskem.com.br/
material-issues-assessement
43 a 54
43 a 54
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
GRI Standard Disclosure
Page and/or disclosure
GRI 405:
Diversity
and equal
opportunity
405-1 - Diversity of governance
bodies and employees
NON-DISCRIMINATION
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 406: Non-
discrimination
406-1 - Incidents of discrimination
and corrective actions taken
LOCAL COMMUNITIES
Macro Goal: Local development
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
45, 47 a 50
www.braskem.com.br/
material-issues-assessement
21 a 22
21 a 22
21 a 22
www.braskem.com.br/
material-issues-assessement
55 a 59, 71 a 74, 76 a 77
103-3 - Evaluation of the management approach
55 a 59, 71 a 74, 76 a 77
GRI 413: Local
Communities
413-1 - Operations with local community
engagement, impact assessments,
and development programs
413-2 - Operations with significant actual and
potential negative impacts on local communities
56 a 59
71, 76 a 77
Principles
of the
Global
Compact
GRI Standard Disclosure
Page and/or disclosure
6
6
1
1
SUPPLIER SOCIAL ASSESSMENT
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 414:
Supplier Social
Assessment
414-1 - New suppliers that were
screened using social criteria
PUBLIC POLICIES
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 415:
Public Policy
415-1 - Political contributions
CUSTOMER HEALTH AND SAFETY
Macro Goal: Safety
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
60 a 66
60 a 66
60 a 66
www.braskem.com.br/
material-issues-assessement
69
69
Zero
www.braskem.com.br/
material-issues-assessement
71 a 74, 78
71 a 74, 78
< 100 >
Principles
of the
Global
Compact
2
10
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
GRI Standard Disclosure
Page and/or disclosure
Principles
of the
Global
Compact
GRI Standard Disclosure
Page and/or disclosure
< 101 >
Principles
of the
Global
Compact
GRI 416:
Customer
Health and
Safety
416-1 - Assessment of the health and safety
impacts of product and service categories
416-2 - Incidents of non-compliance
concerning the health and safety
impacts of products and services
MARKETING AND LABELING
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
417-1 - Requirements for product and
service information and labeling
417-2 - Incidents of non-compliance concerning
product and service information and labeling
417-3 - Incidents of non-compliance
concerning marketing communications
GRI 417:
Marketing
and Labeling
78
78
SOCIOECONOMIC COMPLIANCE
Macro Goal: Strengthening of Practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
aspect and its Boundaries
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
78
78
78
78
Zero. The Company declares non-
existence of non-compliance with
regulations and voluntary codes regarding
marketing communications, including
advertising, promotion, and sponsorship.
GRI 419: So-
cioeconomic
Compliance
419-1 - Non-compliance with laws and
regulations in the social and economic area
www.braskem.com.br/
material-issues-assessement
16 a 18
16 a 18
Braskem had assessments during
the period, both environmental and
regulatory; however, the Company
was not definitively ordered to pay
fines or to comply with non-monetary
sanctions during the period in question.
For the purpose of this report, the same
materiality criterion used in the Reference
Form established by the Brazilian
Securities and Exchange Commission
(“CVM”) was adopted, pursuant to CVM
Instruction 480/2009 ─ BRL 60 million.
For environmental issues, the amount
of BRL 10 million was considered.
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 102 >
CREDITS
Vice President of People, Business Communication,
Marketing, and Sustainable Development
Marcelo Arantes
Director of Corporate Communication
André Vieira
Director of Sustainable Development
Jorge Soto
Corporate Communication Supervision
Amanda Moscardini
Sustainable Development Supervision
Mario Pino
Luiz Carlos Xavier
Analysis of Indicators, Project Development,
and Content Production
Keyassociados
Graphic Design and Layout
Magenta•Lab
Assurance
KPMG
Photos
Acervo Braskem
Translation
Gotcha! Idiomas
For more information about this report,
please contact imprensa@braskem.com
102-53
Headquarters - Office
Odebrecht Building - Rua Lemos Monteiro, 120
Butantã - São Paulo (SP)
ZIP CODE: 05501-050
102-3
MESSAGE FROM THE
BUSINESS LEADER
BRASKEM
GOVERNANCE
AND COMPLIANCE
BUSINESS
PERFORMANCE
INNOVATION
STAKEHOLDERS
HEALTH, SAFETY,
AND ENVIRONMENT
SUMMARY OF GRI
CONTENT STANDARDS
CREDITS
< 103 >