ANNUAL
REPORT
2018
2
FOREWORD
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 3
GLOBAL AND CONNECTED
WITH THE FUTURE
We are a company that seeks innovation at all times. As the sixth largest producer
of thermoplastic resins in the world1 and a global leader in the production of
biopolymers, we believe in the power of transformation through chemistry and
plastics, and in their responsible use to improve the lives of people.
On the following pages, see the path we pursued in 2018 in order to continue to improve
our results, our commitment to sustainable use of plastic, and our capacity to innovate in
the search for sustainable products and solutions that are increasingly more efficient.
Braskem always seeks to improve its Annual Report to be transparent and provide relevant
information to our stakeholders. To do so, we would like to ask for your cooperation on our
continuous improvement.
At the end of our report, you will find a research about the current content and what, in
your opinion, could be improved in the future versions. There are only six multiple choice
questions. The research is completely anonymous and does not require any personal or
professional information. The answers will only be used internally to improve our report.
Thanks in advance for your contribution and enjoy your reading!
1 Considering Polyethylene, Polypropylene, and Polyvinyl Chloride - Source: external consulting
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MESSAGE FROM
THE BUSINESS
LEADER
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READY FOR NEW CHALLENGES
102-14
Soundness, innovation, and result – these are
To this end, we are developing along with
the words that defined Braskem in 2018. A year
our Members, projects that will help us
when, despite all the challenges faced by global
think beyond and create a company that is
market, we posted a record cash generation,
increasingly oriented to the future. Through our
reaching R$ 7.1 billion – 187% higher than 2017.
squads - groups formed by multidisciplinary
Our EBITDA showed a strong consistency,
teams with different views on innovation
reaching R$ 11.3 billion, with a net income of
for the business - we are closely monitoring
the controller company of R$ 2.86 billion.
topics defined as priority for our company:
mobility and digital manufacturing.
In addition to keeping our focus on creating
value for our shareholders, in 2018 we once
While working to improve further the way
again placed our bets on innovation. We
we operate and drive our vision for the
reached higher than simply developing more
future, we initiated a digital transformation
sustainable products. We encouraged our
process in several industrial and corporate
Members to follow global disruptive trends,
areas, numerous initiatives to create digital
sought to better serve our Clients, developed
process optimization tools, preventive
new ways to manage our business and to
maintenance, quality control, and the adoption
assumed a leading role in extremely important
of technologies such as artificial intelligence,
initiatives for the preservation of the planet.
machine learning, and advanced analytics.
But none of this would be possible without our
Members, who continually contribute in the
search for new solutions that make Braskem
an increasingly better company – and not
only in terms of products and services, but
also as a great place to work. Therefore, I
wish to highlight one of the most important
initiatives of our company in 2018 - the BeUx,
a new Value Proposition for our Members that
offers possibilities for innovation and creation
to a diverse and constantly evolving team.
SOUNDNESS, INNOVATION, AND RESULT – THESE ARE THE WORDS THAT DEFINED BRASKEM IN 2018< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 6
SUSTAINABLE AND RESPONSIBLE
CONTINUOUS IMPROVEMENT
CRITERIA 15, 19 AND 20 - COP
With a focus on our constant evolution, I would like to
highlight our positioning within the Circular Economy.
We believe that plastics have a critical role to play
in delivering a more sustainable future, but we also
recognize the need for better management of post-
consumer waste. Thus, through this public positioning,
we are increasingly committed to supporting sustainable
and innovative technologies and, especially, the
expansion of recycling in all places where we operate.
Plastic waste in our oceans has attracted worldwide
attention. Aware of our role in confronting this global
challenge, we joined the Alliance to the End Plastic
Waste – an initiative that involves 30 corporations
– to help minimize the impact of waste disposed
of improperly, and to seek new technologies and
business models that favor reuse of this material.
Through such initiatives, we are constantly reinforcing our
engagement with and contribution to the major global
social and environmental agendas. In 2018, we updated
our Global Sustainable Development Policy, a document
that reinforces our commitments to adhering to the
precepts of the Universal Declaration of Human Rights
and aligns our goals and aspirations with the agenda of
the United Nations’ Sustainable Development Goals.
Even in the constant search for the new, at no time have
we set aside our strong commitment to continuous
strengthening of our governance and compliance
processes. In 2018, we continued to implement our
Compliance Improvement program. We have already
adopted 93% of the total number of actions. We
established a process to evaluate the Board and
Board members, contributing to its effectiveness
and improvement of the company’s governance.
Finally, I would like to thank our Shareholders, as well as our
Clients, for all the trust placed in Braskem. I also thank all
the dedication and competence of our Suppliers, Partners
and Members – who are essential in making Braskem
even stronger in a scenario of global competition.
Fernando Musa
WE BELIEVE THAT
PLASTICS HAVE A
CRITICAL ROLE TO PLAY
IN DELIVERING A MORE
SUSTAINABLE FUTURE
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 7
BRASKEM
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 8
BRASKEM 102-1, 102-2, 102-4, 102-6, 102-7, 102-12, 102-13, 301-1
We are the sixth largest petrochemical
automotive, agribusiness, and
company in the world, with 41
industrial units in four countries
health and hygiene, among others.
(Brazil, the United States, Mexico, and
Following our commitment to
Germany) and an annual production
sustainability and innovation, we
capacity of 8.9 million tons of
are also the main global producer of
thermoplastic resins (Polyethylene,
biopolymers, with annual production
Polypropylene, and Polyvinyl Chloride)
capacity of 200,000 tons of I’m
and 10.7 million tons of basic chemicals
green™ Green Plastic, a Polyethylene
(such as Ethylene, Propylene,
produced from sugarcane ethanol,
Butadiene, and Benzene, among
a source that is 100% renewable.
others). We serve Clients in more than
In 2018, we launched an Ethylene
100 countries from a wide variety
Vinyl Acetate (EVA) copolymer
of sectors, such as food packaging,
civil construction, industrial, retail,
from renewable sources, which is
also part of our I’m greenTM brand.
WE ARE THE SIXTH LARGEST PETROCHEMICAL COMPANY IN THE WORLD, WITH 41 INDUSTRIAL UNITS AND THE MAIN GLOBAL PRODUCER OF BIOPOLYMERS, WITH ANNUAL PRODUCTION CAPACITY OF 200,000 TONS OF I’M GREEN™ GREEN PLASTIC.< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER MAP OF OPERATIONS
9
OPERATIONS
in 4 COUNTRIES
Free cash flow
generation
R$ 7,068
MILLION
8,0082
Members
41
INDUSTRIAL
units
CLIENTS
in over
100 COUNTRIES
16
SALES
offices
Click here to learn more about
our global presence.
2 Members only. Does not include interns.
Click here to see the
addresses of our offices.
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1. Raw Material Extraction
2. Processing Raw Material
3. Logistics
4. Transformation and Processing
5. Use
6. Disposal
7. Recycling
Capitals
Natural
Human
Financial
7
5
6
4
3
2
1
10
TO LEARN MORE ABOUT HOW WE WORK,
CLICK ON NUMBERS AND ICONS
Stakeholders
Members
Investors /
Shareholders
Intellectual Manufactured
Social
It should be noted that Braskem does not produce or market products derived from genetically modified
organisms (GMOs) or products containing GMO ingredients, whether in Brazil or abroad.
Clients
Civil Society
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Click here to watch the video with our strategy
for Sustainable Development (Portuguese only)
SUSTAINABILITY
AS PART OF THE STRATEGY
CRITERIA 1, 3, 6, 9, 10, 11, 15, 17, 19 AND 20 - COP
We aim to improve people’s lives by creating sustainable solutions
in chemicals and plastics—topics that are becoming increasingly
strong in our growth strategy. We believe that sustainable
development is a way of conducting and developing our business,
and considering the needs of all stakeholders, today and tomorrow.
We continuously seek to think and act sustainably in all our
corporate activities, ranging from operational and management
processes to services, investments, relationships, and products.
In order to support this work, we have in place a solid Global
Sustainable Development Policy, which was revised and approved
by the Board of Directors in April 2018, that together with Senior
Management, oversees the policy’s commitments performance.
Supported by three pillars—increasingly sustainable operations and
services, increasingly sustainable product portfolio, and solutions for
an increasingly sustainable life (where we work to adapt to climate
change while reducing our greenhouse gas emissions and water
consumption, among other impacts)—through this policy we aspire
to be a civic company and leader in sustainability in the chemical
industry, always strengthening our commitment to promoting
economic growth, environmental preservation, and social justice.
Click here to learn about our
Global Sustainable Development Policy.
THE SUSTAINABLE DEVELOPMENT IS A WAY OF CONDUCTING AND DEVELOPING OUR BUSINESS< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 12
HUMAN RIGHTS
CRITERIA 3 AND 9 - COP
We adopt internationally recognized human rights as
the base for sustainable development and we respect
these rights in developing our business, including
direct operations, operations of joint ventures, and
of the value chain. Our commitment follows the
United Nations Guiding Principles on Business and
Human Rights, is guaranteed by Braskem’s Code
of Conduct and Code of Conduct for Third Parties
and, in 2018, was reinforced with the approval of
the Sustainable Development Policy. This policy, in
addition to defining responsibilities, is integrated
into corporate norms and guidelines related to the
topic, with a focus on risk management in three
main areas: human rights, community relations,
and environmental protection and preservation.
Braskem initiated its first audit (due diligence)
on human rights in 2016 as set out in its Guiding
Principles. In 2017, the assessment of actual
IN 2018, WE MET
100% OF SHORT-
TERM ACTIONS
To learn more about the initiatives in
which we participate and about our
voluntary commitments, go to
www.braskem.com.br/voluntary-commitments
and potential impacts of the activities upon human
rights was completed, through which we were able to
identify all possible risks that involve our operations
and those of our value chain, and to approve our first
Risk Matrix on the Violation of Human Rights.
The matrix defined the prioritization of Braskem’s activities
by identifying five potential risks, ensuring the development
of action plans to mitigate such risks: dignity and diversity,
ethics and transparency, traditional peoples, fair work in
the value chain, and post-consumer. To ensure integrated
risk management, we included these risks of human rights
violations identified in the Corporate Risk Matrix, monitored
by the Board of Directors and Senior Management.
We made significant advances in 2018. In addition to
completing 100% of the short-term actions set out in our
action plan, we finalized relevant studies and diagnoses
that will allow for even more assertive steps to be taken
to mitigate prioritized risks. These advances will be
revealed throughout the various sections of this report.
Click here to learn more about our commitment to human rights
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER RISKS THAT CAN INVOLVE OUR OPERATIONS AND OUR VALUE CHAIN
13
ETHANOL CHAIN
SUPPLIERS
BRASKEM
LOGISTICS
PROCESSOR
END USER
CONSUMER
RECYCLING
CHAIN
DIGNITY AND DIVERSITY
PROPERTY SECURITY
PRIVATE PROPERTY
PROCESS SAFETY
OCCUPATIONAL HEALTH AND SAFETY
HEALTHY ENVIRONMENT
SAFETY OF SURROUNDING COMMUNITIES
TRADITIONAL PEOPLES
TRADITIONAL PEOPLES
CONSUMER SAFETY
CONSUMER SAFETY
FAIR WORK
IN VALUE CHAIN
FAIR WORK
IN VALUE CHAIN
WORK AND CAREER CONDITIONS
ETHICS AND TRANSPARENCY
SAFE WORK IN VALUE CHAIN
SAFE WORK IN VALUE CHAIN
POST-CONSUMER
POST-CONSUMER
WORK AND CAREER
CONDITIONS
FAIR WORK
IN VALUE CHAIN
SAFE WORK
IN VALUE CHAIN
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER CARTA DO LÍDER
DE NEGÓCIO
14
Macro goals
for sustainable
development
CRITERIA 1, 9, 11, 15, 17, 18, 19 AND 20 - COP
In our search for products and solutions that
minimize environmental and social impacts,
we align our business strategy with 10 macro
goals with targets set for 2020, associated
with the UN’s 17 Sustainable Development
Goals (SDGs) and more specifically to
seven SDGs to which we contribute most.
The macro goals were developed from
the renewed materiality consultation in
2013, based on a structured consultation
process with stakeholders. Of the 29
aspects evaluated, 17 were considered
material because it were in the critical
or highly critical quadrants and were
consolidated into 10 macro strategic
goals for our contribution to sustainable
development. The results of achieving
the macro goals are regularly monitored
by the company’s Board of Directors.
GOAL 2020
SAFETY
ECONOMIC AND
FINANCIAL RESULTS
POST-CONSUMPTION
LOCAL DEVELOPMENT
WATER EFFICIENCY
To be among the benchmarks in chem-
ical, 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 petrochemical
companies producing Polyolefins. And
to become an important driver of re-
cycling plastic in Brazil, supporting the
achievement of the goals in the Pack-
aging Sector Agreement.
To achieve an “excellent” reputation in
the Citizenship Dimension of RepTrak®
Pulse, demonstrating recognition from
the communities in the vicinity of our
facilities and from society at large for
the company’s contribution to the im-
provement of human development.
To be a benchmark in the global chem-
ical industry for our usage of water re-
sources in terms of water consump-
tion and water reuse.
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
2016
2017
2018
2020
99%
98%
98%
100%
2016
2017
2018
2020
73%
73%
73%
92%
2016
2017
2018
2020
1%
1%
2%
100%
2016
2017
2018
2020
86%
81%
75%
100%
2016
2017
2018
2020
96%
100%
97%
100%
CLIMATE CHANGE
DEVELOPMENT OF SOLUTIONS
STRENGTHENING PRACTICES
RENEWABLE RESOURCES
ENERGY EFFICIENCY
To be among the world’s largest chem-
ical companies in intensity of green-
house gas (GHG) emissions while
maintaining the use of renewable raw
materials.
To be recognized as a company that
supports its Clients in the development
of environmental and social solutions
in Chemicals and Plastics, reaching a
“strong” reputation level through its
products and services.
To be among the business benchmarks
in Brazil for our contribution to sustain-
able development, as well as a global
benchmark in the sector for our contri-
bution 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 one of the best chem-
ical industries in the world, in terms
of energy consumption intensity and
use of renewable energy sources.
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
% OF ACHIEVED GOALS
2016
2017
2018
2020
93%
100%
99%
100%
2016
2017
2018
2020
85%
91%
97%
100%
2016
2017
2018
2020
91%
94%
92%
100%
2016
2017
2018
2020
82%
82%
100%
100%
2016
2017
2018
2020
84%
85%
62%
85%
Braskem initiatives that have earned recognition as
Global Compact LEAD by the UN can be seen here.
Click here to see
The Sustainability Yearbook 2019.
STRENGTHENING
PRACTICES
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER NOTHING IS CREATED, NOTHING IS
WASTED, EVERYTHING IS TRANSFORMED
103-2, 103-3, 102-12, 102-13
Aware of our role as one of the world’s
To move toward a circular economy, we are
largest producers of polymers, in 2018
also committed to improving practices at
we defined a series of global initiatives to
all our industrial units to reduce the loss
drive a circular economy in the production
of pellets (tiny granules of raw material for
chain of processed plastic products.
the production of plastic products that
can be dispersed in plant and logistics
Inspired by nature, a circular economy has a
operations, and end up reaching the
cycle of positive and continuous development
environment) by 2020, and adhering to
that preserves and enhances what comes
industry commitments to work toward
from the planet. We seek to develop eight key
making all plastic packaging reusable,
initiatives, among which are the partnerships
recyclable, or recoverable by 2040.
with Clients in the development of new products
to expand and facilitate the recycling and reuse
Additional initiatives include engaging
of plastic packaging. They also include growing
consumers in recycling programs
investments in new resins from renewable
through conscious consumer education
sources, such as Green Plastic made from
initiatives, using life-cycle assessment
sugarcane, and supporting new technologies,
tools, and supporting actions to
business models, and systems for collection,
improve solid waste management to
sorting, recycling, and recovery of materials.
prevent waste disposal in the seas.
OUR GOALS
By 2020: 100% from our units will adopt best practices
for pellet control.
By 2040: 100% of plastic packaging will be reusable,
recyclable, or recoverable.
A economia circular em uma imagem
Para que o desenvolvimento humano seja sustentável, é preciso controlar estoques finitos e
equilibrar os recursos renováveis.
15
A economia circular nasce em oposição a economia linear, que funciona baseada em três etapas:
extrair, produzir e descartar. Inspirada na natureza, a economia circular propõe um ciclo de
desenvolvimento positivo e contínuo que preserva e aprimora aquilo que vem do planeta Terra.
Ela otimiza a produção e minimiza riscos sistêmicos.
UNDERST
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D H
O
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RAW MATERIALS,
CONSCIOUS USE OF
NATURAL RESOURCES
DESIGN
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WASTE, BUT WITH
MINIMAL WASTAGE
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P A I R
Click here to learn more about the eight fundamental issues we have set to
achieve these goals and watch the video with the Circular Economy Manifesto.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
16
8 million
TONS OF PLASTIC
WASTE IN SEAS
AROUND THE WORLD
INVESTMENT OF UP TO
R$ 5,5 billion
OVER THE NEXT
5 YEARS
FOR A MORE EFFICIENT WASTE MANAGEMENT
GLOBAL CHALLENGE
Plastic waste reaching the oceans has a significant impact
Sea), was created by Plastivida and the Oceanography
Braskem joined the Alliance to End Plastic Waste to help end
on marine life. This plastic is carried to the oceans mainly
Institute of the University of São Paulo and aims to work
improper disposal of this type of waste in the environment, especially
through rivers, which are heavily affected by incorrect
with companies and associations in the plastics sector to
in the oceans. The goal is to invest up to US$ 1.5 billion over the
disposal and poor management of solid waste, and a low
coordinate actions to reduce waste in the oceans. And,
next five years in projects and in the development of technologies
level of recycling. It is a very complex problem that requires
since waste management is a broad and complex issue
that prevent disposal of plastic waste into the environment.
attention from governments, communities, and companies.
– with environmental, economic, and social challenges –
While working to create sustainable solutions through
of Intent, to promote the commitment of this sector.
waste management systems in urban areas with low infrastructure, especially
chemicals and plastic, we understand the need to be
where there are rivers that carry large amounts of waste into the ocean.
Plastivida has proposed a mobilization around a Declaration
Initial global proposals include partnerships with cities to design integrated
part of the solution and we know that much work is
We are one of the signatories of the document and
still needed to ensure proper management of solid
have worked to find solutions through the development
The Alliance is a non-profit organization comprised of over 30 global
waste. Thus, we have decided to actively take part in
of new technologies, increased recycling, and the
companies, across the entire plastic production chain. The World
the debate and in considering solutions to combat
promotion of educational actions. Some initiatives
Business Council for Sustainable Development is a strategic partner.
the accumulation of plastic waste in the oceans.
already align with Braskem’s own objectives and
positioning within the circular economy, such as the goal
To learn more about this initiative, go to: www.endplasticwaste.org.
The initiative, Fórum Setorial dos Plásticos - Por um
to adopt best practices in pellet control by 2020, thereby
Mar Limpo (Industry Forum of Plastics - For a Clean
preventing them from reaching rivers and oceans.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
STRONGER RECYCLING
Our sustainable development strategy
With the mission to create initiatives and
underpins all of the company’s actions.
projects aligned to its positioning, we
In 2018, we expanded and strengthened
launched resins with recycled content
the Wecycle platform, which focuses on
originated from sacks, post-consumer
promoting and developing business and
domestic waste, and pails of printing ink.
initiatives to value plastic waste through
We produced 400 tons in 2018. In addition,
partnerships, and bringing reliability and
we have been working to promote and
quality to the development of products,
support globally the engagement of the
solutions, and processes involving all
plastic value chain in recycling and recovery
links in the plastic recycling chain.
programs and, through educational
programs on conscious consumption,
increase the understanding of the value
of plastic waste to the economy.
With a focus on innovation, we are also
investing in the search for both mechanical
recycling technologies—to improve the
quality of the recycled resin—and chemical
recycling, which can allow plastic waste to
be processed and transformed again into
chemicals that can be used in numerous
value chains, with benefits for society.
In order to advance the development of
chemical recycling, partnerships were
established with EngePol - Polymer
Engineering Laboratory of COPPE/
UFRJ (Alberto Luiz Coimbra Institute
for Graduate Studies and Engineering
Research of the Federal University of Rio de
Janeiro), SENAI Institute for Innovation in
Biosynthetics (SENAI CETIQT), and Cetrel
(an environmental services company that
started operations in 1978, as part of the
Camaçari Petrochemical Complex).
17
COLLECTION AND RECYCLING
WITH THE PHILADELPHIA EAGLES
In the next eight years, the partnership signed between us and the
Philadelphia Eagles football team will make it possible to collect and
recycle plastic bottle caps and other plastic materials used at Lincoln
Financial Field and at the team’s training center, in Pennsylvania,
United States. The initiative also includes an educational project
aimed at public schools in the region to promote career opportunities
in science, technology, engineering, and mathematics.
PLASTIC RECYCLING WITH MURAL ARTS PHILADELPHIA
We entered into a partnership with Mural Arts Philadelphia, the largest public
arts program in the United States, to recycle plastic used in the process of
creating murals. The material is transformed into resins, and then converted
into new plastic products such as buckets and benches, which will be used
again by the artists. The partnership promotes and introduces the benefits
of recycling, and encourages a more sustainable lifestyle among people.
REVERSE LOGISTICS PROGRAM FOR
POLYPROPYLENE PLASTIC CUPS
The program guides and encourages companies to properly dispose
of used plastic cups. The initiative is a partnership between us and
Dinâmica Ambiental, with supporters such as Copobras, Altacoppo,
and Jaguar. The cups are collected and transformed into new products,
such as caps for cosmetics and household utensils. Interested
companies can support the program or choose the reverse logistics
process for their used cups. More than 15 companies participate in
the program and, in a five-month period, 3.6 tons of plastic have
already been collected, corresponding to nearly 2.2 million cups.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER BRASKEM’S VISION ON
SUSTAINABLE FUTURE
18
A digital platform created by us, Bluevision
gathers relevant content on solutions
for a sustainable future. In line with our
commitments, this global channel connects
people, shares initiatives and ideas, and
materializes our purpose in contributing to
improving quality of life by presenting not
only innovations, but also the transformative
force of those who develop solutions for
the intelligent use of natural resources.
With a profile on the main social networks,
the channel offers inspiring stories, curiosities,
and facts, from individuals and organizations,
through text, video, and infographics that
highlight innovative solutions for a better
future, human development, and intelligent
use of the planet’s resources. Among the
more than 30 videos posted on the platform
in 2018, there are two inspiring stories. One
is by Mona Soares, an entrepreneur from
the state of Bahia who produces artisanal
and environmentally friendly cosmetics. The
other is by Ernst Götsch, a Swiss farmer and
researcher working in Brazil who created a
fertilizer-free agricultural technique that
relies on ecosystem management.
MONITORED REPUTATION
Since 2008, the management of our reputation has
focused on three major fronts: the monitoring of a panel
of rational and emotional indicators, process governance
in the areas responsible for relationships with different
stakeholders, and incorporation of analyses in decision-
making on aspects associated with image and reputation.
Annual monitoring uses RepTrak® methodology of the Reputation
Institute and is performed in all countries where we operate.
This monitoring makes it possible to track the perception of
different stakeholders mapped in our relationship chain, assessing
emotional aspects (Pulse®), such as level of esteem, admiration,
empathy, and trust; and rational indicators reflected in seven
dimensions: Products and Services, Innovation, Work Environment,
Governance, Citizenship, Leadership, and Performance.
In 2018, we made progress in the global Pulse® index, showing
a growth in the perception by all stakeholders and maintaining
our reputation in the 60-69 points range. In the current
survey, 5,939 people were consulted, among Members, Clients,
Suppliers, surrounding communities, society, and influencers
in the four regions where we operate: Brazil, Mexico, the
United States, and Europe (Germany and The Netherlands).
Reputation management allows us to create a basis for decision-
making in the assessment of image risks and opportunities
for improvement in the relationship with stakeholders.
Click here to access Bluevision.
OUR REPUTATION
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 19
GOVERNANCE
AND COMPLIANCE
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 20
COMMITMENT AND
GLOBALIZATION
102-16, 102-17, 102-18, 406-1
We believe that the perpetuation of our business is closely linked to
ethics and integrity, and therefore we have in place modern governance
and compliance initiatives, in line with market requirements. Throughout
2018, we implemented new routines and new controls, and reviewed
several policies to enhance compliance processes and make them
globally applicable to a multicultural and multi-ethnic team.
In this period, we also completed the second year of independent
monitoring. The most recent report in September 2018
contained new recommendations that were implemented by
January 2019. The third monitoring cycle began in March 2019,
and a third report is scheduled to be issued in June 2019.
THE PERPETUATION OF OUR BUSINESS IS CLOSELY LINKED TO ETHICS AND INTEGRITY< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 21
• ADHERENCE to the
Commitment of the
Corporate Movement
for Integrity and
Transparency
• ISSUANCE of the
Second Independent
Monitoring Report
(filed on September 27
at the U.S. Department
of Justice)
• INVESTIGATION TRAINING
for members of the
Compliance Committee
and Ethics Committee
• BEGINNING of the training
program for partners concerning
the company’s Code of
Conduct for Third Parties.
• PROGRESS in the
evaluation of Ethos
Institute’s integrity
indicators
• COMPLETION of 12
internal audit projects,
including compensation,
purchase of inputs,
sales, and freight
2018
HIGHLIGHTS
CRITERIA 13 AND 14 - COP
• SOLID TEAM: 37
Members from five
different nationalities,
10 more than in 2017
• 8,2753 MEMBERS
trained in the topic
of compliance by
the end of 2018
• TRAINING on anti-
• 120 NORMATIVE
corruption for members
of the Board of Directors
and Audit Committee
Documents reviewed
by the internal
controls area
Click here to learn more about our structure, principles, and corporate governance
model or visit our Investor Relations website.
• CREATION of 13 new
• With 10 STRUCTURED
Normative Documents
foreseen in the Compliance
Program, including the
Policy for Transactions
with Stakeholders
MEASURES in the Prevention,
Detection, and Remediation
pillars, the Compliance
Program has already
reached 95% on actions
implemented: 153 out of 161.
3 Interns included.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 22
RISK ASSESSMENT
102-15, CRITERIA 3 - COP
Conducted every two years, the risk assessment process
determines the main factors that can impact the
achievement of the company’s strategic objectives,
whether financial, strategic, operational, or regulatory. Of
a total of 106 risks assessed, 16 were considered priorities
and taken for approval by the Board of Directors, which,
together with the company’s leadership, will monitor
each of them in greater detail and frequency. For each of
these risks, action plans were developed to reduce the
likelihood and/or the impact if such event were to occur.
It should be noted that risks associated with
sustainability are considered strategic and evaluated in
this category. Notable among the priority risks are:
• Occupational safety: Possibility of failures in occupational
safety processes and/or procedures, resulting in
accidents with Members, which could lead to lost time
injury, permanent damage to health, and/or death.
• Tax proceedings: Possibility of unfavorable outcome of
tax and social security proceedings in which the company
challenges the legal and/or constitutional nature of
collections by tax authorities, which may result in financial
losses (taxes and fines) and damage to the image.
• Post-consumer plastic waste: Possible difficulty in raising
post-consumer recycling rates of plastics (chemical,
mechanical, and energy), resulting in rejection of our
products by society and consequent loss of market.
ANTI-CORRUPTION POLICIES
AND PROCEDURES
102-16, 103-2, 205-2, CRITERIA 6, 12 AND 13 - COP
Our Code of Conduct has a global scope and sets
out the values, principles, and practices that guide
the company’s conduct. It is worth mentioning that
all members of the Board of Directors and 98% of
Members received training on Braskem’s Code of
Conduct, which has a section dedicated to combating
corruption. The company also has in place an Anti-
Corruption Policy, and 100% of the Board and 96% of
the Members are trained on this topic.
Our Code of Conduct is translated into all languages
of the countries where Braskem operates, and can be
viewed on the company’s intranet and website
(https://www.braskem.com/home-en).
Click here to learn more about our Anti-Corruption
Policy or go to our Investor Relations website.
102-17, CRITERIA 14 - COP
Our Code of Conduct is translated into all languages
of the countries where Braskem operates, and can be
viewed on the company’s intranet and website
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
23
• Industry cycle: Possible difficulty adapting the business
to market volatility or to inadequate assumptions in
the development of corporate strategies, resulting in
financial losses and/or loss of competitiveness.
• Integrity and corruption: Possibility that prevention and
detection mechanisms are not sufficient to avoid an event
related to corruption, fraud, irregularities, and/or ethical
and conduct deviations that could compromise the values
and standards advocated by us and the achievement of
its objectives, resulting in financial losses (compensations
and court settlements) and damages to the image.
• Process safety and logistics: Possible failure in
the safety of the production process, resulting in
• Protection of personal data: Possible non-compliance
injury and/or death of Members, environmental
with the requirements of the various personal
impacts, and/or unavailability of assets.
data protection laws, resulting in accusations of
obstruction of justice, financial losses (fines and
• Macroeconomic and political factors: Possible instability
damages), and damages to company image.
of macroeconomic and political factors, resulting in
difficulty in responding to economic downturn and
• Climate change: Possible difficulty in adapting
changes in the political scenario, which could lead to
to climate change and reducing greenhouse gas
loss of market and financial losses for the company.
emissions in production processes, resulting
in negative impacts on the environment.
• Cybersecurity: Possible difficulty in combating
cyberattacks, resulting in undue exposure of sensitive
• Cost of raw materials: Possible difficulty in establishing
data, delays and unscheduled shutdowns, financial
contracts that guarantee competitive raw material
losses, fraud, and industrial espionage, with potential
prices, resulting in exposure to market volatility, reduction
to compromise security systems in our plants.
of the company’s margin, and financial losses.
• Human rights: Possible difficulty in adequately
• Environmental issues: Likelihood of problems
managing labor relations and relations with communities
in management of existing environmental
impacted by the company’s operation and that
liabilities, resulting in fines and sanctions, in
of its chain, resulting in human rights violations,
addition to damages to company image.
financial losses, and damage to company image.
OF A TOTAL OF 106 RISKS ASSESSED, 16 WERE CONSIDERED PRIORITIES< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 24
TRADE CONTROLS
The trade control process follows a U.S. government
guideline to ensure sanctions against countries
and terrorist regimes involved in international drug
trafficking or activities related to the proliferation of
weapons of mass destruction and other threats to
national security, foreign policy, or the U.S. economy.
At Braskem, the process mainly involves the areas of
procurement, logistics, finance, and technology.
DATA PROTECTION
As a global company, one of our priorities is to comply with the
privacy laws governing the processing of personal data of our Clients,
Suppliers, and Members in all countries where we operate. Thus, in
2017 we started a project to adapt to the new GDPR4 requirements in
Germany and Holland and, in 2018, we started to implement a Global
Privacy Program that covers all regions where we have relevant
operations or commercial offices.
The expansion of scope was determined when Brazil enacted its
General Data Protection Law in 2018, which has made it possible to
further streamline our internal structuring to ensure adequate and
transparent governance that guarantees the preservation of the
rights and freedoms of data owners. This program is already underway
and involves mapping personal data used in each area, updating
contracts with service providers that process personal data on our
behalf (parent company), increasing knowledge and awareness of this
law and its implications, and adjusting all necessary processes.
Even though this program has been designed as a continuous action,
significant improvements have already been implemented, such as
the definition for updating international data transfer agreements,
as well as the review of contracts and privacy policies for the
European region. New initiatives are being implemented for other
regions, including Brazil.
4 General Data Protection Regulation (GDPR): a project for data protection and identity of
European Union citizens that was approved in 2016 by the European Parliament and Council
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 25
INTERNAL AUDIT
Our internal audit is an independent and objective evaluation
and consulting activity, designed to add value and improve
our operations. In 2018, a total of 12 projects were completed,
including: Compensation, Treasury, Procurement of Raw
Materials, Sales, Freight, and Transports. These reports
generated 126 opportunities for improvement in the
internal controls environment of the audited processes
and 276 action plans for the respective remediation
INDEPENDENT
MEMBERS OF
THE BOARD
OF DIRECTORS
The Compliance Committee has become a Statutory
Committee, consisting of at least three independent
members of the Board. Since 2018, the position of
Chairman of the Board has been held by an independent
member, as provided for in Article 19 of the bylaws.
In addition to this enhancement, other improvements are being
implemented to ensure the transparency of our actions. In
2018, a process to evaluate the Board and Board members was
As demonstration of our commitment to best
established, contributing to the effectiveness of the Board and
corporate governance practices, in 2018 an obligation
improvement of the company’s governance. The first evaluation
was included in the company’s bylaws to maintain at
cycle is being conducted with the support of a specialized
least 20% of independent members in the formation
external consulting firm, which has helped identify the strengths
of our Board of Directors. Today, our Board consists
and points for improvement of the group and its members.
of 11 members, six of whom are independent.
The succession plan for the CEO and his or her direct
reports, as well as for the compliance officer, has become
a duty of the Board of Directors, as recommended by the
Brazilian Corporate Governance Code, to ensure that
company administration has professionals, for hiring or
promotion, whose experience and skills contribute to the good
performance of the company and preservation of its value.
Click here to learn about the structure and the
members of our Board and Departments.
OUR BOARD CONSISTS OF 11 MEMBERS, SIX OF WHOM ARE INDEPENDENT< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
COMPLIANCE IS
FOR EVERYONE CRITERIA 13 - COP
In order to understand how our Members view compliance actions, we once
again conducted a global survey involving 4,024 people across our operations
in Brazil, the United States, Mexico, and Europe. Conducted online between
January 15 and February 19, 2018, the purpose of the survey was to understand
people’s perception of compliance and how it relates to their day-to-day lives.
Overall, the results indicate that our Members changed their
perception of the concept of compliance when compared with 2017.
People understand the topic as a commitment of ethics, integrity,
and transparency and not just as compliance with norms.
26
40.6%
37.9%
44.1%
2018
2017
Ethics, Integrity and
Transparency Commitment
18.1%
Internal Norms
Correct Way of Acting
Meanings
Procedures Established
Pursuant to the Guidelines
Technical Standards, Quality and Safety
Meet the specifications
promised to Client
Other Mentions
Don’t know
Did not answer
14.2%
8.5%
8.8%
16.6%
7.4%
10.7%
4.0%
5.0%
0.9%
2.9%
12.6%
8.30%
1.3%
0.2%
2.6%
0.8%
WE ONCE AGAIN CONDUCTED A GLOBAL SURVEY INVOLVING 4,024 PEOPLE ACROSS OUR OPERATIONS< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 27
95.2%
93.3%
Furthermore, the dissemination of a culture of ethics, integrity,
and transparency ranked first in the perception of priorities of
the compliance area, increasing by 10% compared to 2017.
The perception that compliance
is everyone’s responsibility was
already very high in 2017, and this
perception was maintained in 2018.
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
0.3%
2.0%
0.5%
0.1%
85.3%
75.0%
71.2%
77.3%
61.4%
61.3%
44.4%
47.6%
19.6%
20.6%
All Members
All Leaders
Area responsible
for Compliance
Business Leader (CEO)
Board of
Directors
Other
1.7%
1.6%
14.3%
10.4%
0.8%
8.6%
0.4%
6.5%
0.4%
0.3%
2018
2017
Don’t know
0.1%
2018
2017
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 28
Globally, knowledge of the Compliance Policy has increased from 49% to
82%. Today, 98% of the Members have undergone training in the Code
of Conduct and have signed the document. Since the Compliance Policy
has been replaced by the Compliance System Policy and by the Code of
Conduct, the goal is to have 100% of the Members complete the training.
ABOVE-AVERAGE PERFORMANCE
After the implementation of several corrective and preventive actions,
we reached a score above the market average in the evaluation by the
Ethos Institute’s Thematic Guide: Integrity, Prevention and Fight Against
Corruption. Based on the 13 integrity indicators selected, which assess how
aspects of sustainability and social responsibility have been incorporated
into the business, helping to define strategies, policies, and processes, we
have reached an overall score of 8.7—where the average of companies is 6.7.
We have accomplished significant growth compared with 2015/2016, when
indicators first became available for assessment.
2015/2016
2016/2017
2017/2018
6.4
7.9
8.7
IN LINE WITH BEST PRACTICES
103-2, 103-3
The year of 2018 was also significant in the review and
Valid and enforced globally, the Dividends and Stakeholder
implementation of new documents aligned with the best
Transactions policies were approved. The revised
market practices and pursuant to recommendations of
internal regulations for the Board and its committees,
the Brazilian Corporate Governance Code (CBGC), among
as well as said policies, are available and accessible to
them the internal regulations of the Board of Directors,
all Members. In addition, they are available to all our
of the Finance and Investments Committee, of the
stakeholders on the investor relations website
+23%
+10%
People and Organization Committee, of the Compliance
Committee, of the Strategy and Communication
Committee, and of the Statutory Executive Board.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER ETHICS LINE CHANNEL
102-17, 406-1, CRITERIA 5 AND 13 - COP
Since 2017, our Ethics Line Channel has been managed by an independent, outsourced team that receives,
evaluates, and directs all reports received in a personalized and impartial manner. Internally, these reports
are evaluated by a specialized Investigation team of the compliance area. In addition to the online channel,
telephone service is available 24/7, in four languages (Portuguese, English, Spanish, and German).
29
BRASKEM ETHICS LINE CHANNEL
Our Ethics Line Channel is available to all Members, Clients,
third parties, and external public of the company, and is
structured in order to maintain total confidentiality about
the content of the reports. The reports may be made any day
and time through a toll-free number or via the Internet:
BRAZIL: 0800 377 8021
(www.linhadeeticabraskem.com)
GERMANY: 0800 183 0763
(www.lineethikbraskem.com)
GENERAL NUMBERS
DISCRIMINATION
HARASSMENT
HOLLAND: 0800 022 7714
(www.ethieklinebraskem.com)
340 TOTAL NUMBER OF
CALLS THROUGH THE
CHANNEL (cases opened
and received in 2018)
287 CASES COMPLETED
(cases completed in 2018,
regardless of date of receipt)
118 CASES STILL
ONGOING (cases that
remain open, regardless
of the date of receipt)
IN 2018, 14 CASES
RECEIVED IN BRAZIL AND
1 IN THE UNITED STATES
IN BRAZIL, 6 CASES
WERE COMPLETED BY
DECEMBER 31, 2018, AND 8
WERE STILL UNDER REVIEW
IN 2018, 55 CASES WERE
RECEIVED GLOBALLY
39 CASES WERE
COMPLETED BY
DECEMBER 31, 2018
AND 16 WERE STILL
UNDER REVIEW
OF THE 6 CASES
COMPLETED, 3 WERE
SUBSTANTIATED
5 CASES HAD
REMEDIATION ACTIONS
IMPLEMENTED
2 REMEDIATION ACTIONS
WERE IMPLEMENTED
MEXICO: 01 800 681 6940
(www.lineadeeticabraskemidesa.com)
UNITED STATES: 1 800 950 9280
(www.ethicslinebraskem.com)
ARGENTINA: 0800 222 0394
(www.lineadeeticabraskem.com)
COLOMBIA: 01 800 518 4806
(www.lineadeeticabraskem.com)
PERU: 0800 76757
(www.lineadeeticabraskem.com)
CHILE: + 56-448909744
(www.lineadeeticabraskem.com)
SINGAPORE: + 65-31585409
(www.ethicslinebraskem.com)
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 30
BUSINESS
PERFORMANCE
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 31
FINANCIAL AND
ECONOMIC RESULTS
- SOUNDNESS AND
CONSISTENCY
102-9, 102-45 103-2, 103-3
We closed the year 2018 with a record free cash flow
generation of R$ 7.1 billion, 187% higher than 2017, a result
that shows our resilience in a period marked by a challenging
external scenario, a reduction in international spreads, and
extraordinary events that impacted our operations worldwide.
WE CLOSED THE YEAR 2018 WITH A RECORD FREE CASH FLOW GENERATION OF R$ 7.1 BILLION< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER BRAZIL
In Brazil, demand for resins, including PE, PP,
In this scenario, resin sales totaled 3.4
and PVC, continued to recover and totaled
million tons, 2% below 2017, while sales of
5.2 million tons, up 2.4% from 2017 because
the main chemicals were 1% higher than
of the improvement in the level of economic
2017, totaling 2.9 million tons. In 2018,
activity and the demand from the agriculture,
exports of resins totaled 1.3 million tons,
cosmetics, pharmaceuticals, and food
and of the main chemicals, 571,000 tons,
packaging sectors. Special notice should be
14% and 31% less than 2017, respectively.
given to the PVC market, which, in 2018, grew
by 1.4% after four consecutive years of decline.
Our Cost of Goods Sold (COGS) reached a
total of US$ 9,510 million, 9% higher than in
On the other hand, the utilization rate of
2017, an increase that can be explained by the
our crackers was 91%, down 3 p.p. from 2017,
higher price of feedstocks, partially offset by
which is mainly explained by the truckers’
lower sales volume. Despite the increase, for
strike in May, the incident at the Chlor-Alkali
the year, COGS was positively impacted by the
plant Alagoas in January, the blackout that
PIS/COFINS tax credit on feedstock purchases
affected Brazil’s Northeast plants in March,
of US$ 278 million (R$ 1,020 million) and by
and lower demand in fourth trimester of 2018.
the Reintegra credit in the amount of US$20.5
million (R$ 69 million).
32
56% Naphtha/Condensate
1% Ethane Brazil
2% LRC Propane
1% HLR
3% Electric Energy
3% Natural Gas
7% Propylene
13% Other Variable Costs
3% Salaries and Benefits
2% Services and Materials
5% Deprec/Amort
4% Freight Sales
BRAZIL COGS
2018*
(*) Includes the accounting COGS and excludes Cetrel and resale of naphtha
For the year, the units in Brazil and exports posted EBITDA of US$ 1,905 million
(R$ 6,985 million), 61% of the company’s consolidated segments.
FINANCIAL OVERVIEW
(US$ MILLION)
2018 (A)
2017 (B)
VAR. (A) / (B)
Net revenue
COGS
Gross profit
Gross margin
SG&A
Other operating revenue (expenses)
EBITDA
EBITDA margin
Net revenue (R$ million)
EBITDA (R$ million)
11,539
(9,510)
2,028
18%
(655)
20
1,905
17%
42,258
6,985
11,532
(8,727)
2,805
24%
(669)
(123)
2,628
23%
36,802
8,380
0%
9%
-28%
-6 p.p.
-2%
-117%
-27%
-6 p.p.
15%
-17%
THE UNITS IN BRAZIL AND EXPORTS POSTED EBITDA OF US$ 1,905 MILLION (R$ 6,985 MILLION)< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 33
56% Propylene U.S.
22% Propylene Europe
8% Other Variable Costs
3% Salaries and Benefits
3% Services and Materials
2% Deprec/Amort
5% Freight Sales
2% Electric Energy
UNITED STATES
AND EUROPE
In 2018, demand in the U.S. polypropylene
market grew by 3.1%, especially in the
segments of caps and oriented film,
widely used in food packaging. In the
European market, on the other hand,
demand fell due to the weak economic
performance of the region, particularly in
countries such as Germany and Italy.
The plant utilization rate was 87%, down 10
p.p. from 2017 due to operational problems
in the United States, a scheduled shutdown
of the unit in Oyster Creek (Texas), and the
logistical restriction on receiving propylene
at the plants in Europe because of the low
level of the Rhine River. As a result, sales
were 9% lower, totaling 1.9 million tons.
U.S. AND
EUROPE
COGS 2018*
(*) Includes the accounting COGS
For the year, the units in Brazil and Europe posted EBITDA of US$ 608 million
(R$ 2,208 million), accounting for 19% of the company’s consolidated segments.
Our COGS reached a total of US$ 2,496
million, up 7% from 2017 explained by higher
propylene prices (which accompanied the
FINANCIAL OVERVIEW
(US$ MILLION)
rise in oil prices) and logistics constraints
Net revenue
in Europe, which increased the prices
of this monomer in the region.
COGS
Gross profit
Gross margin
SG&A
Other operating revenue (expenses)
EBITDA
EBITDA margin
Net revenue (R$ million)
EBITDA (R$ million)
2018 (A)
2017 (B)
VAR. (A) / (B)
3,211
(2,496)
715
22%
(167)
2
608
19%
11,725
2,208
3,087
(2,324)
763
25%
(183)
(7)
647
21%
9,854
2,063
4%
7%
-6%
-3 p.p.
-9%
-
-6%
-2 p.p.
19%
7%
FOR THE YEAR, THE UNITS IN THE UNITED STATES AND EUROPE POSTED EBITDA OF US$ 608 MILLION (R$ 2,208 MILLION)< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
34
MEXICO COGS
2018*
23% Ethane
1% Electric Energy
11% Natural Gas
11% Other Variable Costs
0% Salaries and Benefits
7% Services and Other
38% Deprec/Amort
8% Freight
(*) Includes the accounting COGS
The result for the segment includes revenue of US$ 95 million referring to the delivery-or-
pay provision of the ethane supply contract. For the year, the unit in Mexico posted EBITDA
of US$ 617 million (R$ 2,251 million), accounting for 20% of the consolidated segments.
FINANCIAL OVERVIEW
(US$ MILLION)
2018 (A)
2017 (B)
VAR. (A) / (B)
Net revenue
COGS
Gross profit
Gross margin
SG&A
Other operating revenue (expenses)
EBITDA
Operating EBITDA margin*
Net revenue (R$ million)
EBITDA (R$ million)
1,034
(636)
398
38%
(81)
79
617
51%
3,771
2,251
1,128
(657)
472
42%
(90)
9
623
53%
3,601
1,987
-8%
-3%
-16%
-4 p.p.
-10%
-
-1%
-2 p.p.
5%
13%
*Does not consider the delivery-or-pay provision for feedstock contracts.
MEXICO
Demand for PE in Mexico was 2.1 million
The utilization rate of the Polyethylene plants
tons compared to 2 million tons in 2017,
was 77%, down 11 p.p. from 2017 mainly because
a growth of 2.7%. The sectors that most
of lower supply of ethane in the period and a
influenced this growth were blown and
scheduled shutdown in May. As a result, sales
films/laminates, widely used in the
were 18% lower, totaling 799,000 tons, of which
food packaging and hygiene sectors.
67% were directed to the Mexican market.
Our COGS totaled US$ 636 million, down 3%
from 2017 because of lower sales volumes,
which offset higher ethane price levels.
FOR THE YEAR, THE UNIT IN MEXICO POSTED EBITDA OF US$ 617 MILLION (R$ 2,251 MILLION).< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER RECORD FREE CASH FLOW GENERATION (R$ MILLION)
CONSOLIDATED
We generated US$ 3.1 billion (R$ 11.3 billion) in EBITDA for the year,
representing a 20% decrease compared to 2017, mainly due to lower
spreads in the industry and lower utilization rates of our plants.
11,315
1,095
-1,880
-1,917
-938
-826
218
19% Return
on Free
Cash Flow*
+187%
35
EBITDA
(R$ MILLION)
EBITDA
(US$ MILLION)
-8%
-20%
12,334
11,315
33%
67%
39%
61%
3,872
33%
67%
Abroad
Brazil
EBITIDA
2018
WORKING
CAPITAL
CAPEX **
INTEREST
PAID
IR/CSLL
COLLECTED
STRATEGIC
INVESTMENTS
OTHER ***
7,068
2,460
FREE CASH
FLOW
GENERATION
2018
FREE CASH
FLOW
GENERATION
2017
3,105
39%
* Free Cash Flow ÷ Market Cap (considers the share price on 12/31/2018).
** Considers the CAPEX of Braskem Idesa, Cetrel and does not consider associated taxes that are allocated in “working capital.”
*** Includes: (i) Premium in the dollar put option; (ii) Funds received in the investments’ capital reduction; (iii) Financial assets held to maturity; and (iv) dividends received.
In September 2018, given this strong cash generation and in order to
reduce interest expenses on loans, we partially redeemed US$ 200
NET DEBT*
US$ 5.1 BILLION
million in the 7.375% perpetual bonds at par value. In addition, we
NET DEBT / EBITDA*
61%
contracted a line of credit of up to US$ 225 million guaranteed by
Euler Hermes, which will be used to finance part of the investments
in our new PP plant in the United States, and a line of credit of
US$ 295 million, with credit coverage by the Italian government
2017
2018
2017
2018
agency SACE, which will be used for corporate purposes.
Despite the lower EBITDA, our free cash flow generation reached
risk outlook from negative to stable and, for the first time,
a record amount of R$ 7.1 billion given the positive variation in
our credit risk is three steps above sovereign credit risk
operating working capital, the positive impact of the depreciation of
by Standard & Poor’s. Thus, we retained our investment
the Brazilian real against the U.S. dollar, the reduction in income tax
grade by Standard & Poor’s and by Fitch Ratings and above
payment in the United States in U.S. dollars, and the lower interest
sovereign risk by the three major risk rating agencies.
In 2018, Standard & Poor’s and Moody’s shifted our credit
paid after the early settlement of debt in Brazilian reais with higher
cost including the partial prepayment of the perpetual bond.
2.06X
AVERAGE DEBT MATURITY
14 YEARS
RAGE OF DEBT MATURITIES
40 MONTHS
WEIGHTED AVERAGE COST OF DEBT
VARIATION FX + 5.52%
*Does not include Braskem Idesa’s project finance debt; considers the Leniency Agreement.
Click here to learn more about the results and our business strategy
www.braskem-ri.com.br/home-en.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER VALUE ADDED STATEMENT (VAS) 201-1
36
2016
2017
2018
Revenues (R$ thousand)
52,429,423
58,000,752
68,923,212
Personnel (R$ thousand)
Sales of goods, products, and
services (R$ thousand)
55,930,688
57,958,099
68,255,566
Other (expenses) revenues, net (R$ thousand)
(3,437,060)
Provisions for credits of doubtful
debtors (R$ thousand)
(64,205)
1,202
41,451
567,793
99,853
Direct remuneration (R$ thousand)
Benefits (R$ thousand)
FGTS (government severance fund)
(R$ thousand)
2016
1,267,513
986,940
218,110
62,463
2017
2018
1,421,214
1,565,468
1,147,158
212,815
1,239,606
263,294
61,241
62,568
Inputs acquired from third parties (R$ thousand)
(39,909,905)
(41,147,077)
(51,627,620)
Costs of products, goods and ser
vices sold (R$ thousand)
Materials, energy, third-party services, and other
(R$ thousand)
(37,802,247)
(38,845,377)
(48,993,132)
(2,019,390)
(2,237,835)
(2,574,232)
Loss/recovery of asset values (R$ thousand)
(88,268)
(63,865)
(60,256)
Gross value added (R$ thousand)
12,519,518
16,853,675
17,295,592
Depreciation, amortization, and depletion
(R$ thousand)
(2,683,100)
(2,928,855)
(2,990,577)
Net value added produced by
the entity (R$ thousand)
Value added received in transfer
(R$ thousand)
Equity income (R$ thousand)
Financial income (R$ thousand)
Other (R$ thousand)
9,836,418
13,924,820
14,305,015
720,407
652,527
1,856,981
30,078
690,122
207
48,832
603,630
65
(888)
1,857,793
76
Total value added for distribution (R$ thousand)
10,556,825
14,577,347
16,161,996
Taxes, fees, and contributions (R$ thousand)
3,018,046
4,232,072
4,925,801
Federal (R$ thousand)
State (R$ thousand)
1,288,179
2,214,611
2,235,453
1,703,249
1,995,068
2,639,015
Municipal (R$ thousand)
26,618
22,393
51,333
Remuneration of third-party capital
(R$ thousand)
Financial expenses (includes exchange rate
variation) (R$ thousand)
7,000,463
4,790,740
6,763,517
6,755,962
4,545,979
6,495,041
Leases (R$ thousand)
244,501
244,761
268,476
Remuneration of equity capital (R$ thousand)
(729,197)
Net income (loss) for the year (R$ thousand)
(438,331)
4,133,321
3,074,114
2,907,210
2,866,675
Dividends
-
1,000,000
-
Non-controlling shareholding interest in
subsidiaries (R$ thousand)
(317,725)
50,331
40,535
Result from discontinued operations
26,859
8,876
-
Total value added distributed (R$ thousand)
10,556,825
14,577,347
16,161,996
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 37
BRASKEM’S
STRATEGIC OBJECTIVES
AMBITION
STRATEGY - GLOBALIZATION AND TECHNOLOGY
PRODUCTIVITY AND COMPETITIVENESS
• Seek continuous improvements in productivity and competitiveness in the
current operation, with a focus on operational efficiency and cost leadership
Braskem as 1st quartile operator
FEEDSTOCK DIVERSIFICATION
• Diversify the feedstock profile, increasing gas exposure and maintaining
asset flexibility
GEOGRAPHIC DIVERSIFICATION
• Expand the global footprint outside Brazil with gains in scale in PE and PP,
reinforcing our leadership in the Americas
PEOPLE, GOVERNANCE AND REPUTATION
• Implement solutions to address the challenges of the Circular Economy and include
mechanically and chemically recycled resins and chemicals in our product portfolio
• Attract and retain talent with the implementation of the new EVP
• Strengthen Braskem’s image and reputation before members, society
and investors through advances in compliance and innovation
Reach balance between liquid base and
gas base, creating flexibility of +20%
Increase global capacity by 25%, with
operations outside Brazil representing
more than 50% of EBITDA
Recognition of Braskem as a global,
sustainable, innovative and people-
oriented company
In 2018, we continued to implement our strategy through various initiatives.
Regarding feedstock diversification, it was our first
Regarding productivity and competitiveness, we signed a contract for the
year operating the petrochemical complex in Bahia,
purchase of wind energy that will enable the expansion of the Folha Larga
Brazil, using imported ethane as feedstock.
Complex in the State of Bahia, being developed by EDF Renewables.
Furthermore, we have established a partnership with Siemens for the development of
million planned for the construction of the new Polypropylene
a retrofit project of the petrochemical plant of the complex in the ABC region in the
plant—the sixth PP industrial unit in the United States, whose
State of São Paulo, which will reduce electricity consumption and CO2 emissions in that
physical progress is nearly halfway complete. In addition, our
unit. [Learn more in the Health, Safety and Environment section - Energy Efficiency].
Board of Directors approved the establishment of a new company
We have invested US$ 382 million of a total of up to US$ 675
in India to pursue new growth and sales opportunities.
NEW PLANT
Construction of the new PP plant in the United
States was 48.3% complete at the end of 2018, with
a total investment of US$ 382 million already made.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER FAR BEYOND THE PETROCHEMICAL INDUSTRY
Far beyond the petrochemical industry
In order to evolve in strategic areas of our
business and remodel the way we work, in 2018
we started to work on digital transformation.
With the participation of dozens of Members
worldwide, the initiative has sought the
integration of digital technologies in our
operations and business processes with
the objective of raising us to new levels of
performance and competitiveness, evolving
the way we work, and creating new ways to
serve our Clients.
Our culture of agility and entrepreneurship puts
us in a solid position to be the company that
will lead the digital evolution in our industry.
Supported by the newly created Braskem
Digital Center, our Members in Brazil, Mexico,
the United States, and Germany are looking for
new ways to serve Clients, create value, and
generate sustainable competitive advantages.
Among the actions included in this initiative are:
• Using new technologies such as drones,
sensors, and machine learning to operate
more efficiently and cost effectively.
• The intelligent application of a large
amount of data gathered by us over
the years to support decision-making
about factory operations.
• The creation of an atmosphere in
which Members dedicate their time,
talent, and energy to performing
higher value activities.
A FEW HIGHLIGHTS
• The action plan defines more than 50
initiatives covering all business areas,
from operations, marketing, and sales,
to the supply chain, procurement,
and corporate structure. Together,
they have the potential not only
to increase margin, but also to
consolidate our leading position in
innovation in the chemical industry.
• Examples of the potential gains: The
use of digital technologies allows for
up to 7% increase in productivity
and up to 15% improvement in
maintenance costs.
38
BRASKEM 5.0
The backbone of a broad transformation program, we reorganized
our Information Technology team around a new strategy that is
more connected to the business, and created goals aligned with the
company’s strategic objectives. The Braskem 5.0 Program was created
to support this transformation. The initiative aims to align the main
business challenges with opportunities to adopt new technologies
and processes in a sustainable and scalable manner. Some actions of
the program are already going in this direction, with projects involving
the industrial internet of things (IIoT), virtual reality applied to the
industry, robotic process automation (RPA), data-lake analytics, sales
force automation, and cloud technologies such as Office 365 and SAP
Concur, among others.
Planning of the program includes seven pillars: Supply Chain and
Logistics, Digital IT, New Business Models, People, Industry 4.0,
Enterprise 2.0, and Customer Experience.
• In 2018 alone, we received more than
110 initiatives from various areas.
• We created the User Experience Squad,
focused on providing a new experience
in using our current and future
technology solutions with a dedicated
team and agile methodology.
• We held hackathons and Discovery
Day, providing the business areas with
immersion for one or two days, where,
with the involvement of startups and other
market companies, we sought alternatives
to solve the challenges proposed.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 39
INNOVATION
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER MOVED BY THE NEW
We are a company that is always on the lookout for innovation, and for what
the future and technology can bring to improve people’s lives in a sustainable
and responsible way. But it is not only our model and our strategy that are
linked to innovation. Today, innovation is part of each Member who, regardless
of their area of activity, is always focused on seeking new solutions and
services that strengthen our contribution to sustainable development.
40
INNOVATION IN NUMBERS
We live in an era that is in constant transformation. Therefore, investments in people and
infrastructure are essential to improving existing initiatives and creating new opportunities
for businesses and Clients.
307
MEMBERS
1 PROCESS
TECHNOLOGY
Development Center,
in Mauá (Brazil)
16,000 ANALYSES
were conducted for
75 clients in Pittsburgh
(United States)
2 TECHNICAL CENTERS focused on polymers, in
Wesseling (Germany) and Coatzacoalcos (Mexico)
2 TECHNOLOGY AND INNOVATION CENTERS,
in Triunfo (Brazil) and Pittsburgh (United States)
1 RENEWABLE CHEMICALS RESEARCH CENTER,
in Campinas (Brazil)
7 PILOT PLANTS
27 NEW RESIN GRADES
added to the portfolio in 2018
INVESTMENT OF MORE THAN R$ 14 MILLION
in the Technology and Innovation Center in Triunfo (Brazil)
and more than R$ 10 million in the Technology
and Innovation Center in Pittsburgh (United States).
308 PROJECTS to develop new products and processes
34 NEW PATENT applications and 152 extensions
282 PATENTS granted
420 CLIENTS received support from our Technology
and Innovation Center in Triunfo (Brazil), with more than
59,000 analyses conducted
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 41
EXPANDING
CAPACITY
• LABORATORIES
We acquired two new chromatographs for the Process
Technology Development Center, in Mauá (Brazil). One
focuses on the identification of organic compounds, and
the second on sulfur speciation of liquid samples, mainly
used in the work of chemicals and specialties platforms.
Investments were also made in handling equipment to
Throughout 2018, we invested in expansion, construction,
enable moisture analysis and powder characterization.
and improvements in several of our laboratories and pilot
In addition, in order to help grow the solvent business,
plants. With this, we expect to have even more versatility
new equipments were acquired to sample and measure
and capacity for innovation in our products and services.
solubility in systems to apply in new solvents applications.
In Wesseling (Germany), investments were made
in equipment to add capability for assessing basic
characterization in polyethylene (PE), such as presses
and molds, flow rates, density, impact (IZOD), and
moisture, as well as to improve the chromatograph
to enable testing of volatile organic emissions.
• TECHNOLOGY CENTERS
In Pittsburgh (United States), we installed a semi-
commercial thermoforming line to help develop new
products and applications. In addition, robots were installed
to automate operating routines in the laboratory, including
compression molding, elasticity, and impact testing.
In Triunfo (Brazil), we started the construction of a
new 2,800 square meter building for the laboratory
expansion. The space will have advanced polymer
characterization laboratories, which will be able to
perform analyses such as chromatography, polymer
fractionation, microscopy, as well as catalysis and
petrochemical process technology laboratories. The quality
control laboratory will operate in the same building.
With an investment of R$ 50 million (including equipment),
the challenge for the new building is to encourage
innovation even before it is built. The team responsible for
the project identified more than 30 applications of plastic
in construction, with solutions that take into account the
savings, durability, strength, and versatility of materials.
WE ARE ALWAYS LOOKING FOR INNOVATION< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER FOCUS ON
MEGATRENDS
• PILOT PLANT
In 2018, we built a fermentation pilot plant at the
With a global approach and teams that work in an
Renewable Chemicals Research Center (RC), located
interconnected manner, we have been directing our
in Campinas (Brazil), which will allow us to advance
efforts to developments that go beyond plastics, and
our renewable chemicals projects and develop new
focusing on its positioning in the face of medium – to
products and processes. These projects are closely
long – term changes, such as new markets and new
related to the circular economy proposal, at the
beginning of the value chain, seeking to develop
products that contribute to CO2 capture.
• OPERATION
We established a new operation in Boston (United
uses for our products. This is how one of the main
initiatives of 2018 began: the squads, interdisciplinary
working groups that will develop innovative solutions
connected to mobility and digital manufacturing.
• Mobility: The convergence and maturation of
technologies, combined with the need for less polluting
States), focusing on research, development, and
modes of travel in large cities, are changing the mobility
marketing of chemicals and materials from renewable
model in the world. Lower consumption of fossil fuels
sources. The choice for this location helps us take
because of the adoption of electric cars will impact the
advantage of the region’s advancement in biotechnology
oil market and, consequently, our feedstock. In addition,
and advanced materials. Activities include research
future vehicles will not be the same as those of today
and development in biotechnology and materials
and may need products with other characteristics,
science, business and market development, and the
which generates opportunities. This trend also has
search for technologies for strategic partnerships.
the potential to change consumption standards
and demand a different profile for our products.
42
• Digital manufacturing: The squad’s purpose is to test new
business models and develop technologies for 3D printing based
on the current product portfolio, but not limited to it. To this end,
we are investing in new laboratory capabilities and have partnered
with equipment manufacturers, a university in Sheffield, England,
and Virginia Tech in the United States, to develop polymers for
Filament (FFF) and Selective Laser Sintering (SLS) and explore
opportunities in Specialty Chemicals for Stereolithography (SLA).
OUR INNOVATIVE THINKINGGO FAR BEYOND PLASTIC< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 43
IINNOVATIONS
FOR THE
MARKET
A plastic that changes color? More
flexible and at the same time durable
packaging? An EVA for footwear from
renewable sources? Every year we invest
in research for the development of
more efficient products that impact the
environment and society less. Among
Green EVA: developed in partnership with the North
American company Allbirds, the EVA (Ethylene Vinyl
hundreds of products, 27 new resin grades
were added to our portfolio in 2018.
Acetate copolymer) from a renewable source is part
of our I’m greenTM brand and will be used in Allbirds’
SweetFoam line of shoes. Among the characteristics
Intelligent polymers: Since 2017, we
have been working on the development
of polymers that change color with an
Resistance, flexibility, and transparency: We
released three new products to the Brazilian and
U.S. markets. In Brazil, there was an expansion
external stimulus to communicate relevant
of the Polyethylene portfolio for closures,
information to the user. Its main applications
with the new HDPE resins fully meeting the
of the product are lightness, flexibility, and durability.
are in food packaging, cosmetics, and
technical requirements of carbonated beverage
Greenhouse gases are captured during the production
pharmaceuticals. Among the benefits are
caps, and the new, more durable LLDPE resin
process, reducing emissions: While 1 kilo of fossil
EVA releases 1.84 kilos of CO2 into the atmosphere,
1 kilo of EVA I’m greenTM captures 2.51 kilos of CO2.
increased safety as an indicator of quality,
(LL2402N) being used for edible oil bottle caps.
reduction in food waste, and the possibility
For the flexible packaging market, we introduced
of avoiding bad consumer experiences.
a new Proxess1509XP metallocene LLDPE,
which combines good mechanical properties
and gloss for packaging. In the United States, a
Polypropylene impact copolymer (Prisma 6810)
was launched that combines transparency,
stiffness, and impact strength. The product
is used for rigid packaging and its market was
developed in the United States and Europe.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 44
New applications
Thinking and testing products in new ways is
also part of our culture of innovation. Thus, in
2018, we started a pilot project at our plant
in Camaçari (Brazil) to test the use of plastic
for the protection and thermal insulation of
pipelines, and to replace metal sheets. The
material has presented advantages such as
longer lifespan and high capacity for returning to
its normal state after being submitted to stress.
In addition, the study shows performance gains
and cost reductions. The technology is already
known in Europe and is being tested in Brazil by
our market development area, in partnership
with Rochling Plásticos de Engenharia do Brasil
and UCA Engineering Plastics.
Recycled resin
During the Sustainable Brands conference,
held in Vancouver (Canada) in July 2018, we
presented – through the Wecycle platform –
promising results in creating a new recycled
resin with superior quality and a high percentage
of recycled materials derived from post-
consumer thermoformed packaging made
from Polyethylene. Its main characteristics
include resistance to stress cracking like that
of virgin resins and tensile stress mechanical
properties that are 70% higher than recycled
resins currently on the market. The next step is
to identify partners to test the solution in small
volume thermoformed packaging.
Global resin: The production of a
Polypropylene (PP) used in the United
PVC: We developed a new grade for
the market of rigid profiles for ceilings,
Solvents: We launched a new HE-
70S oxygenated solvent, a distinct
States for the piping market and used
with superior processability and
product for our hydrocarbon portfolio.
in Brazil for the production of extruded
capacity to incorporate mineral fillers.
The new solvent is produced with
sheets was initiated in Brazil. A new
This development was carried out to
ethanol, bringing sustainability value
PP resin for buckets has also been
meet the demand of the processing
and lower toxicity to the final product.
launched, with better mechanical
industry, in line with the new, recently
The properties of the new solvent
properties and higher melt flow rate,
revised ABNT NBR 14285 standard.
which improves processability and
facilitates production for our clients.
allow for its application in formulas
for adhesive and cleaning thinners.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER Playing with Green Plastic
As the world’s largest producer of biopolymers,
in 2018 we began supplying our Green
Polyethylene I’m greenTM for the production
of the LEGO Group’s botanical elements, such
as trees, bushes, and leaves. The partnership
reinforces our successful strategy of investing
in sustainable and innovative products.
Life cycle assessment
CRITERIA 10 - COP
In 2018, 13 full studies were completed, four of
which were externally reviewed, and 12 additional
simplified studies. From 2006 to 2018, a total of
109 studies have been conducted, of which 61
were completed, 13 reviewed and 35 simplified.
Among the highlights of the year is the LCA study
of the new resin from the renewable portfolio I’m
GreenTM EVANCE and a study that compares the
best ways to transport Members between their
homes and our facilities. The study concluded
that management of the occupancy rate and of
the technology of the means of transportation
are fundamental for reducing the environmental
impact related to this operation.
In addition, we made a comparison between
carton and flexible packaging for frozen foods.
The study demonstrated environmental benefits
of flexible packaging ranging from 16% to 37%
reduction in total impact. Reducing packaging
weight and reducing the volume occupied in
freezers are key factors in achieving the result.
45
COMPLETE ASSESSMENT
In 2018, we completed exten-
sive life-cycle inventory work at
all of our chemicals and polymer
production units in Brazil. This
work resulted in the consolida-
tion of an inventory with hun-
dreds of our products that can
be used to diagnose the main
points of environmental impact
in production, and to disclose
the average environmental im-
pact of each product family in
platforms such as Ecoinvent
(the largest repository of LCI
datasets in the world) and SICV
Brasil (National Repository for
Life Cycle Inventories).
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 46
SHARED
INFORMATION
In January 2018, we started a project to develop
a solution that would allow for efficient and
comprehensive management and sharing of knowledge
at Braskem. In addition to a new organizational structure
dedicated to this subject, we created an online platform
for knowledge sharing: the Knowledge Hub, which
integrates documents available in different systems and
knowledge sources currently used in our organization.
Through this initiative, people will be able to share and
find content and professionals with specific knowledge
to guide them when necessary. In addition, the tool
promotes great exchange of experiences and generates
the possibility to co-create solutions in discussion
forums. The platform also benefits internationalization
of knowledge and addressing of gaps, increasing
individual and collective productivity of Members. The
platform was launched in March 2019 and, with it, we
hope to be an even more agile, efficient, collaborative,
and competitive organization, ensuring collective
knowledge in favor of our global competitiveness.
More attractive
In 2018, we were named one of the most attractive companies
for startups, according to a ranking by 100 Open Startups in Bra-
zil, a platform for engagement between companies and startups
that was created by more than 70 leading organizations world-
wide, which evaluate and classify startups around the world to
generate business.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 47
INVESTMENT
IN THE FUTURE
A sustainable entrepreneurship platform already
consolidated within the company, Braskem Labs
seeks startups with high-impact solutions and
entrepreneurs who believe in their potential to
transform the world. The initiative is currently
divided into three programs with different focuses:
Ignition, a program for those who have a good idea
that uses plastic and/or chemicals for improved
social and environmental impact and want to
transform it into a business; Scale, for those who
already have a consolidated business and seek to
gain scale; and Challenge, which seeks startups
to solve challenges posed by our various areas.
In 2018, through Scale, 10 startups were
accelerated during four months through dozens of
mentorships and business connections. Meanwhile,
18 challenges were proposed to the startup
ecosystem, and various pilot projects are currently
being developed within us to capture efficiency
gains or reduce costs in our different areas.
SCALE
• 158 companies signed up
to participate in the program
• 10 companies accelerated
• 42 Braskem Leaders engaged as
mentors, sponsors, or specialists
• 40% of the accelerated
companies did business with us
• 30% are already in contact
with potential investors
CHALLENGE
• More than
270 startups registered
• 22 Braskem areas registered
• 18 challenges proposed
• 19 pilot projects being developed
• Approximately
R$ 500,000
in investments
INVESTMENT
R$ 1,779,574.00
R$ 1,996,600.06
R$ 1,435,836.54
2016
2017
2018
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 48
STAKEHOLDERS
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER BEUX - AN OPEN INVITATION TO LIVE
NEW EXPERIENCES TOGETHER
MEMBERS
103-2, 103-3, 404-2, 405-1
We are a people-oriented organization
The twisted semicircle with Braskem’s
colors reinforces the concept of constant
and, for us, it is essential to create value
transformation and the experience that is
for all our stakeholders. It couldn’t be any
renewed and reinvented at every moment.
different with our Members. Promoting the
It proposes the ability to renovate complex
development of all and creating an environment
systems through subtle changes.
where people can grow professionally and
personally is at the center of the strategy of
the People & Organization department.
We care about people from before they
enter the company until they leave. We
want to ensure that the time they spend
with the company is a positive experience.
Thus, since 2017 we have been reinforcing
the implementation of several initiatives to
make our work environment more receptive,
integrated, creative, and collaborative.
Be: As a verb, ‘Be’ is the action element of
BeUx. It reinforces the assumption that the
career, the achievements and the professional
We search for the new at all times. In 2018
path within Braskem depend on the movement
we consolidated our Value Proposition
with the BeUx, which brings together
new possibilities of how people can
develop, learn, and experience work.
and attitudes of each individual as part of a
whole. It also reinforces the assumptions of
originality, diversity and respect for People.
‘Be’ also brings forward the power of a group,
of self-affirmation and of how members
recognize themselves and others and the
work that is done from the inside out.
49
The “U”, the leading role of
our Members in the construction
of the whole gains strength. It
emphasizes the invitation to live
experiences at Braskem, shows
that Members need to be in group
and thus make the global and
collaborative transformation.
The “X”, along with the “U”,
creates the expression UX.
It represents the movements of the
future of work, they come in the
form of experimentation. It raises
Members to the power of their
experience, of sharing, of learning, of
what can be experienced together.
The words “BE” and “U” have
different weights, thus facilitating
sound and pronunciation.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER LEADING ROLE AND FLEXIBILITY
Society is changing. And so is the way people
perceive work. Attentive to how these
transformations are rapidly impacting the
work environment, with the definition of
our Value Proposition we have identified
several initiatives to continue evolving
in our people management model.
Throughout the year, we involved around
300 Members from all countries where we
operate to help us identify opportunities
for improvement and build new people
management practices. After several
meetings, nearly 4,800 changes were
suggested. Among these initiatives is a
working model that brings greater flexibility
and self-direction to professionals.
We created a more flexible workplace, allowing
Members to carry out their activities from
places other than the company’s headquarters
on certain days of the week. The change
offers greater convenience in performing the
day’s tasks, strengthening our relationship
of trust and professional maturity.
50
A NEW EXPERIENCE
In the search for new ways of working and
as an invitation to live new experiences, in
addition to flexibility, we are also betting
on the integration and sharing of spaces.
With the physical implementation of
this new concept, all our floors at the
company’s headquarters in São Paulo (Brazil)
underwent a renovation to make the office
a more open corporate environment.
Workstations are no longer fixed, and
people can sit where it is most convenient,
either close to their team or close to
Members in other areas. The idea is
to facilitate closer relations between
different areas, opening up opportunities
for coexistence and co-creation.
Furthermore, in order to increase the
spaces for temporary projects, in which
multidisciplinary teams are dedicated for
long periods of time, specific rooms have
been created for this purpose. This initiative
is linked to the process to define our Value
Proposition, which showed the importance of
increasing the opportunities for interaction
between people and allowing each Member
to play a leading role in carrying out their
activities, regardless of where they are.
As of 2019, some of these new internal
onboarding initiatives will be replicated to
other offices and industrial units, observing
the specificities of each region and country.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER MORE DIVERSE, INCLUSIVE, AND HUMANE
103-2, 103-3
Our mission to work toward a better society for current
and future generations also includes human rights. For
this reason, every day we work to become an increasingly
inclusive and welcoming company. We give everyone
equal opportunities through the Diversity & Inclusion
program. In addition to holistic actions, our initiatives
are based on five work fronts aimed at the inclusion
and empowerment of historically marginalized groups:
women, LGBTQIA+ (Lesbian, Gay, Bisexual, Transgender,
Queer, Intersex and Assexual), black people, socially
vulnerable people, and persons with disabilities.
In Brazil, we focused on actions that promote
awareness and mobilization on the topic. In 2018,
more than 500 Leaders were trained in the topic. We
created the affinity network for LGBTQIA+ Members
and started hiring transgender people and persons
with disabilities. We organized the Braskem Forum
on Diversity and Inclusion and approximately 500
Members participated. We also organized the second
Diversity and Inclusion Week, with the topic “Empathy,”
which featured actions in our units throughout Brazil.
In the United States, 2018 was the first year of
advancing the local diversity strategy, with the
formation of a committee dedicated to the topic
and training sessions conducted at all sites.
2016
2017
2018
THE IMPORTANCE OF
GOOD COMMUNICATION
22%
22%
23%
23%
25%
27%
23%
23%
23%
10%
9%
10%
Women
Women in
leadership
positions
Blacks
Blacks in
leadership
positions
The way we communicate says a lot about
us. Thus, in order to strengthen the work
on inclusion and diversity, in 2018 we
launched a guide for our Members on how
to communicate while respecting gender,
sexual orientation, race, ethnicity, origin,
physical or mental condition, religion,
education, and other characteristics that
enrich diversity within Braskem and society.
The guide shows, above all, the
importance of inclusive communication,
and reinforces the awareness that
work environments are composed of
people with different characteristics
and therefore it is important to
communicate in a manner that is including,
valuing, respecting, and welcoming all
diversity inherent to human beings.
Note: We don’t have yet have specific indicators for people with disabilities and LGBTQIA+.
51
Guia
Comunicação
Inclusiva
Click here to learn more about
our diversity processes.
IN 2018, WE WON THE EXCELLENCE OUT AND EQUAL AWARD FOR OUR ACTIONS TO PROMOTE THE INCLUSION OF LGBTQIA+ PEOPLE. < >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 52
WHO WE ARE
405-1
TOTAL NUMBER OF
MEMBERS (WORLDWIDE)
2016
2017
2018
6,005 6,010 6,176
1,651
1,703
1,832
7,656
7,713 8,008
RATIO OF SENIOR MANAGEMENT
HIRED WITHIN THE LOCAL
COMMUNITY 103-3, 202-2
According to our culture, the exchange of
people between business units in Brazil
and abroad is a common practice for the
development of Members, an initiative that
may have a direct impact on this indicator.
Brazil
United States
Germany
Mexico
International offices
Total
2016
2017
2018
53%
N/A
67%
26%
0%
49%
56%
N/A
67%
29%
0%
51%
58%
N/A
75%
28%
10.5%
53%
* Members of senior management are Members from grades 3 to 10 who 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 legal reasons). This indicator is
monitored for all countries where we operate, for those with industrial units and those with
commercial offices only.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
53
RATIO BETWEEN THE LOWEST SALARY
COMPARED WITH THE LOCAL MINIMUM WAGE*
VOLUNTARY
TERMINATION RATE 401-1
202-1
Alagoas
Bahia
Brazil
Rio de Janeiro
Rio Grande
do Sul
São Paulo
United States
Germany
Mexico
2016
2017
2018
2016
2017
2018
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
1.5
1.6
2.1
1.8
1.7
3.5
2.1
3.3
1.4%
1.5%
1.8%
3.6%
2.2%
2.6%
1.9%
1.7%
2.0%
* The calculation method used considers the lowest salary paid by us using the Hay table (a table of
salaries and wages established by us) valid until December using 85% of the range in Brazil and Me-
xico (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, we
offer Members salaries above the minimum wage in the region.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
ATTRACT AND DEVELOP PEOPLE5
103-2, 103-3, 402-2, 404-2
Supporting the growth and development of
our Members is a priority for the People &
Organization department. Thus, throughout
2018 we continued to implement various
programs focused on integration, development,
and preparation and training of Leaders.
We strengthened our connection to student entities
in order to bolster our position as a company
capable of attracting young professionals. As
proof that we are on the right track, in 2018 alone
we were recognized by Love Mondays as one of
the 50 companies most loved by Members and
interns, as one of the Dream Companies for Young
People by Cia de Talentos, and as one of the Best
Companies to Start a Career by Você S/A.
In 2018, our university and technical internship
programs had around 35,000 applications, a 32%
growth compared to 2017. For the selection process
of the university internship program, a pilot project
was carried out using artificial intelligence in the
application phase and with online dynamics and
game phases to ensure a better fit to the profile
As part of the Leaders’ training strategy, we offer
we were seeking. On another front, our Operator
classroom programs and development opportunities
Training program hired 40 interns and 89 trainees,
through distance education in three environments: the
and supported our strategy of renewing the
Self-Development Portal, the LMS Platform, and the
Industrial team. In Mexico, 41 interns were hired and
Technical Development Platform. In Mexico, approximately
10 were employed for positions in industrial and
support areas such as analysts and technicians.
5 The Horizontes program was discontinued in 2017, and we do
not currently have programs for Members in the post-career
transition process
80 individual development plans were conducted for
Leaders. Main training topics were crucial conversations
between Leader and direct report, international programs,
leadership acceleration, strategic planning, and coaching
sessions. In all, there were more than 2,600 hours of Leader
training. In 2018, in Mexico, the program for developing new
54
leaders was also launched, and looked to prepare Members
for their first transition to leadership positions. In the United
States, 21 leaders participated in development workshops.
Also in 2018, we launched Braskem’s new Career Philosophy,
looking to guide Leaders and Members in building their
careers in the company, in line with the current scenario
and our Value Proposition. For the year, R$ 27.2 million
was invested in training 6,825 Members worldwide.
For us, career is a sequence of diverse and meaningful
experiences that enhance the development of our Members.
There are many possible ways to build a career, and each
Team Member is encouraged to pursue their own path to
achieving a higher level of satisfaction and strengthening their
individual purpose while delivering results for the company.
MOST LOVED: We are among the 50 largest
Brazilian companies most loved by their
employees, according to Love Mondays.
YOUNG PEOPLE’S DREAM: After a
survey conducted with more than 70,000
people, we received the “Dream Career”
award in the “Youth” category.
BEST COMPANY: We were chosen as one of the
Best Companies to Start a Career by Você S/A.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
55
INDIVIDUAL PERFORMANCE MANAGEMENT
404-3, CRITERIA 8 - COP
All of our Members around the world undergo annual
goals. Based on the development and growing challenges
performance evaluations that consider the Member’s
in the PA, the Member is evaluated in the People Planning
contribution to the organization in quantitative terms
and Succession process that seeks to ensure career
(results) and alignment with the culture. This performance
planning for strategic positions within the company.
and career management is the basis for dialogue in the
relationship between Leader and direct report, who plan
and agree on the results to be achieved in the year in an
Action Program—the PA - as it is known in the company.
TRADE UNION RELATIONS
102-41, CRITERIA 6 E 8 - COP
We recognize Unions as the legal representatives of our
Throughout the period, the evolution of results is
Members, and we always seek dialogue and understanding
monitored and, if necessary, new directions are defined.
as the preferred means of resolving possible labor and
The assessment takes place at the beginning of the
Union conflicts. In Brazil, almost all of our Members
following year and serves as a basis for identifying
are represented by Unions. Collective bargaining
development opportunities to be included in the PA for
agreements are conducted directly by our Brazil’s Labor
the following year or in the plan called Education for Work,
Relations team or through the Employers’ Unions, also
which includes actions to support continuing education
with the support and participation of said team.
and recommendations for corporate programs.
Concerning Members worldwide, only a few at the Neal
Finally, in the judgment phase, the Leader decides on the
plant in the United States are covered by collective
Member’s next steps in a clear, fair, impartial manner,
bargaining agreements. In Germany, none of the
and in line with the organization’s mission and goals.
plants has had this type of coverage since 2014, since
The process is carried out in all locations where we operate.
for the chemicals and petrochemicals category. In
All Members have an individual PA, a requirement to receive
Mexico, only unionized Members of the operation
their variable pay, which is associated with achievement of
are covered by collective bargaining agreements.
the country does not have an agreement in place
BRAZIL U.S.
GERMANY MEXICO
INTERNATIONAL
OFFICES
TOTAL
Members covered by collective
bargaining agreements
6,098
59
Total number of Members 1
6,173
754
0
188
339
812
0
81
% Members covered by collective
bargaining agreements
1 Does not include interns
98.8%
7.8%
0.0%
41.7%
0.0%
6,496
8,008
81.1%
The PA cycle consists of four phases:
1. Planning/Pact
2. Monitoring
3. Assessment
4. Judgment
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
COMMUNITIES
103-2, 103-3, 203-1, 301-3, 413-1
A NEW STRATEGY
In 2018, we reviewed our Private Social Investment (ISP -
Investimento Social Privado) strategy created in 2012. With
the support of an external consulting firm specialized in
sustainable management, we defined a model that brings greater
connection with the business and is in line with our Sustainable
56
MAXIMIZE OUR POSITIVE IMPACT, BUILD LASTING RELATIONSHIPS AND CONTRIBUTE TO THE SUSTAINABLE
DEVELOPMENT OF THE COMMUNITIES IN WHICH WE OPERATE AND OF SOCIETY AS A WHOLE
SOCIAL AND ENVIRONMENTAL IMPACT
Expand the positive social and environmental impact generated by Braskem,
contributing to transform the reality of the communities where we operate.
REPUTATION
Promote Braskem as a company that provides
sustainable solutions to local and global
RELATIONSHIP
Establish relationships of trust and
maintain permanent dialogues with our
communities and other stakeholders
Development Policy. Now, we are guided by three priority causes:
challenges and be recognized by communities
sustainable consumption and post-consumption; innovation
and sustainable entrepreneurship; and local development.
as a partner of local development
The purpose is to maximize the positive social and environmental
impact of Braskem, build lasting relationships, and contribute to the
sustainable development of the communities where we operate
and of society as a whole. Thus, all our ISPs must fulfill three basic
objectives: to increase the positive social and environmental impact,
to promote the company as a provider of sustainable solutions,
and to establish relationships of trust with communities and other
stakeholders. This strategy reinforces our belief that ISP projects
can be leveraged through coordination and partnerships, ethics and
transparency, internal engagement, and business connection.
Private Social Investment (ISP) is the voluntary,
planned, monitored, and evaluated use of our
private resources to carry out initiatives of public
interest, guided by the company’s strategy and
by a participatory action of the community,
public authorities, and other companies.
Lead education
practices for sustainable
consumption and
provide scale and
sustainable solutions,
considering the life cycle
of products, especially
plastic, through
actions to promote the
4Rs: rethink, reduce,
reuse and recycle
CAUSES
CROSS-CUTTING THEMES
N A N D P A
ATIO
DIN
R
O
O
C
I
N
T
E
R
N
A
L
E
N
G
E R S H I PS
N
T
R
ETHICS A
N
D
T
R
A
N
S
P
A
R
E
N
C
Y
Innovation and
sustainable
entrepreneurship
Sustainable
consumption
and post-
consumption
S
S
E
N
SI
U
N W ITH THE B
Local
development
A
G
E
MENT
CO N N E C T I O
Empower people to
develop businesses
that have a positive
impact on society and
the environment
Promote and actively
participate in actions
aimed at the social
and environmental
development of the
locations impacted
by Braskem.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
PORTFOLIO REVIEW
OUR IMPACT CRITERIA 16 - COP
57
Based on our new strategy, we map out each project’s strengths and
opportunities and consider the demands of the communities themselves.
This is an important process that has made it possible to improve projects
that have good potential, to maintain those that are efficient, and to verify
the possibility of conducting new projects that meet other needs.
PROJECTS EVALUATED
4
Alagoas
16
São Paulo
39
TOTAL
9
Bahia
Rio de
Janeiro
4
Rio Grande
do Sul
6
After the analysis, we found that only 34 projects fit our ISP criteria. In order
to meet the requirements, the project must be planned, monitored, and
evaluated, and have a participatory community action. Projects that do not
meet these criteria are considered one-time support or donations.
In 2018, we directly helped nearly 200,000 people in different
areas where we operate. Our local and global actions have had a
positive impact on both the community and the environment.
Beneficiaries
One-time support or donations
Private Social Investment
(ISP) projects
2017
2018
Direct
144,000
199,281
Indirect
Brazil
Mexico
Global
Total
-
26
40
6
1
47
350,910
46
34
7
1
42
Sorted waste (kg)
(Ser+)
14,352
25,022
Plastic waste collected
and redirected (ton)
Plastianguis
7
28
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER GLOBAL PRIVATE SOCIAL INVESTMENT (ISP)
BRAZIL
GLOBAL
MEXICO
Investment
Number
of projects
Beneficiaries
R$ 8,342,553.97
34
115,867
R$ 954,493.98
R$ 273,430.73
1
7
70,954
3,990
TOTAL
R$ 9,570,478.68
42
190,811
GLOBAL INVESTMENT BY COUNTRY (ISP + DONATIONS)
58
GERMANY
BRAZIL
UNITED STATES*
MEXICO
GLOBAL
Investment
Number
of projects
Beneficiaries
R$ 2,160.68
1
-
R$ 18,636,399.29
57
120,827
R$ 226,845.92
13
2,010
R$ 964,766.43
16
5,490
R$ 954,493.98
1
70,954
TOTAL
R$ 20,784,666.30
88
199,281
*Numbers reported up to third quarter of 2018
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 59
CLICK HERE TO LEARN
ABOUT OUR CAUSES
GLOBAL INVESTMENT BY CAUSE
(ISP + DONATIONS)
CAUSE
Sustainable consumption
and post-consumption
INVESTMENT
R$ 5,058,198.95
COMPLIANCE: REVIEW
OF THE GUIDELINE AND PROCEDURE
In order to improve our management
practices and continue the process initiated
in 2017, we reviewed the Global Guideline for
Sponsorships and Donations, the procedures
of each country, the documents that guide the
selection of proponents, and the monitoring
and transparency of the process. This review
was done in all regions where we operate: Brazil,
Mexico, the United States, and Europe.
In partnership with Deloitte, all projects
conducted in Brazil in 2017 had their accounts
audited to ensure that all investments
were being properly allocated and correctly
used, pursuant to the provisions set out in
the agreements with each proponent. This
evaluation may include an on-site audit if the
project meets certain review criteria, such as:
• If the amount invested is equal to or greater
Local development
R$ 13,580,460.57
than R$ 500,000
Innovation and sustainable
entrepreneurship
Total
R$ 2,146,006.77
R$ 20,784,666.30
• If the due diligence assessment finds that the
proponent has a high level of risk
• If it is a donation from the Odebrecht
Foundation
• If the regular audit disapproves the project,
even partially
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
60
2017
2018
R$ 290,511.63
R$ 954,493.98
36,167
159,018
856
359
497
4,550
47
1,222
18,786
-
-
4.7%
70,954
350,910
2,759
1,287
1,488
15,964
64
2,226
32,010
15
4
16%
OUR PROJECTS
103-2, 103-3
Braskem Volunteer Program
The program was created to promote a positive
social and environmental impact in the communities
surrounding our operations and to improve people’s
quality of life. The program is global and, in addition to
Brazil, has the participation of Mexico and the United
Investment
Direct beneficiaries
Indirect beneficiaries
Participants
States. In 2018, actions were carried out in two ways:
Braskem members
External guests
Hours donated
Institutions benefited
Actions taken
One-time donations
Task forces
Donation campaigns
Engagement rate (percentage of total
number of Braskem members)
Competition: Members of the company joined
forces to work in a social organization in the
community for a specific period of time. The
collaborative competition took place from May
to August and, as recognition, donations were
made to entities supported by the teams that
achieved the highest score in each country.
Task forces: In an unprecedented manner,
several individual actions were carried out in
a group in each of the locations in which we
operate. Donation campaigns and actions
were also promoted with people from the
community in situations of social vulnerability.
One of the main indicators of success of the
Volunteer Program is the engagement rate,
which grew significantly in 2018, reaching 16%
globally and 4,400 hours of volunteer work.
IN JUST ONE YEAR, THE VOLUNTEER PROGRAM HAD:
222%
increase in
participation
of volunteers
82%
more actions
70%
growth in
donations
251%
more hours
dedicated by
volunteers
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER Ser+ 301-2, 301-3
Ser+ is a project to promote social inclusion and the
socioeconomic development of those responsible
for sorting recyclable material and of cooperative
members by promoting the development of
the national recycling chain in Brazil.
In 2018, we consolidated the national implementation
of the project, covering all regions in which we operate.
Through the partnership with Mãos Verdes (Green
Hands), we invested and expanded the Sorting Units (UT
- Unidades de Triagem) and approved 37 cooperatives
based on human rights criteria and, among them,
two are qualified to serve our Wecycle program. One
of the most important results is the 26% increase
in the monthly income of those benefiting from the
project, more than double the target set for 2018.
It is important to note that given the wide variety of
specifications and packaging requirements, most
packages that carry the Wecycle seal contain a higher
61
2016
2017
2018
GOAL 2019
percentage of recycled resins, although there is a
Investment
R$ 1,210,924.68
R$ 1,966,508.50
R$ 1,698,489.70
need to mix with virgin resin in order to meet quality
standards. With the advance of the initiative and
new partnerships, we plan to expand our volume of
recycled resins to 900 tons per month in 2019.
Sorting units / Cooperatives served
Number of cooperatives eligible to serve Wecycle
Sorters benefited
Sorters trained
Volume of waste sorted (kg)
Volume sold/month - T/UT
Percentage of sorters with increased income
Increase in income/month
45
-
3,444
858
30,824
-
-
23%
35
-
1,278
326
14,352
-
-
42%
37
2
1,057
472
25,022
72
52%
26%
-
40
2
1,000
600
60,000
60
40%
12%
WE SEEK TO BE A COMPANYPROVIDEROF SUSTAINABLE SOLUTIONS< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 62
Edukatu
Developed in 2013 through a partnership between us and the Akatu
Institute, Edukatu takes environmental education and concepts
of sustainability and conscious consumption to schools across
Brazil. We also entered into partnerships with municipal boards
of education of seven cities in the States of São Paulo, Rio de
Janeiro, and Bahia, and with the São Paulo State Department of
Culture, which significantly increased the reach of the project.
Ecobarreira
2016
2017
2018
GOAL
2019
28,441
38,773
42,073
46,210
TOTAL NUMBER
OF PARTICIPANTS
Ecobarreira (Ecobarrier) is a project carried out in
partnership with the Safeweb Institute in Porto Alegre,
created to prevent solid waste from reaching Lake Guaíba.
Installed in the stream called Arroio Dilúvio in March
2016, Ecobarreira has received our support since 2017 as
an environmental education project focused on raising
awareness among children and adolescents about conscious
consumption and sustainable post-consumption.
Since its inauguration, Ecobarreira has already
prevented 475 tons of material from being released
into the lake, an average of 180 tons per year. After
studying the material collected in the stream, it was
Pescadores de Mel
found that only 8.2% of the material collected is plastic,
Through a partnership with Uniprópolis, the project teaches fishermen
and of this total, nearly 20% can be recycled.
from four regions in the State of Alagoas: Maceió, Barra de São Miguel,
2,591
2,382
2,095
1,000
5,710
7,126
5,388
4,950
TEACHERS
INVOLVED
STUDENTS
INVOLVED
Investment
2017
2018
R$ 50,000
R$ 78,000
Marechal Deodoro and Coqueiro Seco (Brazil) the trade of honey production
and hydroponic farming. The goal is to promote generation of additional
income for fishermen during the annual fishing ban, in addition to social
inclusion and technical training. The honey and propolis produced have
unique medicinal properties and help strengthen the region’s trade.
2016
2017
2018
Investment
R$ 50,000
R$ 50,000
R$ 50,000
People trained in beekeeping
133
91
178
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 63
Plastianguis
Held in Mexico, the event encourages recycling and helps educate the community to identify
and sort plastic waste, which is exchanged for coins called PlastiPesos. The coins are used to buy
cleaning products and food for a price subsidized by us. In 2018, sorting reached 28 tons—304%
higher than the previous year. The material was sent to recycling cooperatives in the region.
Families benefited
Community participants
Products delivered
(staples basket)
Volunteers
Hours of volunteer work
Plastic collected (tons)
Food staples products
distributed (tons)
2017
2018
400+
1,000
6,000
66
600
7
-
800
3,200
19,824
130
1,170 (average of 9 hours per
person x 130 people)
28.3
21.7
2017
2018
Investment
R$ 250,000 (ICMS)
R$ 214,287
(54 BRK, 160 ICMS)
Young beneficiaries
258
334
Investment (MXN$)
MXN$ 603,889.51
MXN$ 1,192,338.40
Investment (R$)
R$ 102,243.37
R$ 227,563.28
PlastiPesos distributed
79,534
Food staples baskets distributed
494
201,967
1,239
SOM + Eu
The music education project in Duque
de Caxias (Brazil) offers free music
workshops and has a permanent
calendar of artistic and cultural events.
The idea is to promote social inclusion
of beneficiary students, who participate
in their free time. The project also
includes other initiatives, such as
Orquestra Tubônica, which combines
music with environmental education
by producing musical instruments
made of plastic, such as PVC.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 64
Inclusion and diversity at The Franklin Institute
We have become the official partner for Diversity and
Inclusion at The Franklin Institute, in Philadelphia, one of the
largest and oldest centers of science, technology, education,
and development in the United States. This partnership
allowed us to support programs such as Color of Science,
Women in Science, and Introduce a Girl to Engineering.
The purpose of the initiatives is to drive diversity in STEM
(science, technology, engineering, and mathematics)
fields, and they offer practical activities, special workshops,
and opportunities for direct interaction with academic
leaders, industry executives, and influential leaders.
We are already a partner of The Franklin Institute in other
Respect to local cultures 411-1
projects, collaborating with commitments in sustainability
Maintenance of traditional local cultures and livelihoods
and state-of-the-art technology that impact more
is part of what we monitor in the areas surrounding
than 1 million people each year. In 2018, the company
our operations. Since 2015, we have supported a
was the main sponsor of the Women in Science Day
participatory fishing monitoring program that has been
event, which included a presentation by Yi So-yeon, a
tested and implemented in the communities of Ilha
biotechnologist and the first Korean astronaut to go
da Maré (Bahia) by Instituto Maré Global. The program
to space. The company is also a constant supporter of
has annually empowered nearly 100 fishermen and
the Philadelphia Science Festival, where we present
shellfishers to reproduce their traditional way of life.
content about the benefits of plastic to attendees.
The work of the Institute, which also involves emancipatory
environmental education, has been expanded to the schools
in the region through the traveling Environmental Tent. In
2018, 269 children learned about the value of local knowledge
and environmental preservation and conservation in the
Instituto de Pesca Artesanal) in 2017 and inauguration of
communities of Praia Grande, Santana, Botelho, and Martelo.
its headquarters in 2018. As a legitimate representative of
The innovative tent provides space for debates about
the Institute undertook its first initiative: to register IPA at
protecting and improving local knowledge about fishing,
the Social Security Institute (INSS) to allow it to provide
and promotes synergy among the residents who depend
services such as issuing of a General Fishing Register (RGP
on the quality of artisanal fishing. This synergy resulted
- Registro Geral de Pesca), which guarantees fishermen’s
in the creation of the Institute of Artisanal Fishing (IPA -
rights to disability insurance, retirement, maternity aid, etc.
the demands of the communities of Ilha de Maré, this year
WE INVEST TO EMPOWER LOCAL WORKERS< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 65
Open dialogue with the community
CRITERIA 5, 7 E 10 - COP
We consider the relationship with the local
community to be extremely important
and, to this end, we established a series of
communication channels. Each regional office
has specific communication channels for
the community. Some of these channels are
accessed through Development Committees—
this is the case in Triunfo and Bahia, where
communication channels were defined
through COFIP and COFIC, respectively.
In addition, the company has a corporate
channel, where questions, complaints, and
comments are received by our Corporate
Health, Safety, and Environment team and
submitted to the corresponding area. In the
case of reports on issues related to topics such
as harassment and discrimination, we have in
place the Ethics Line Channel, as covered in
the Compliance and Governance section.
OPERATION AT PINHEIRO 413-2
Braskem has been conducting mining
activities in Alagoas (Brazil) since 1975,
when the company was still known
as Salgema. The activities consist of
the exploitation of salt that is used in
the production of chlorine and soda.
Since March 2018, when there were
seismic shocks in Maceió, Alagoas,
after the heavy rains that occurred
at the time, we began to monitor
the worsening of the cracks in the
buildings in the District of Pinheiro
in Maceió, and since then the wells
in the area have been deactivated
and are not operational.
Braskem has signed an agreement
to implement emergency measures
in the neighborhood and has
provided support, information
and collaboration with relevant
public authorities on the issue.
To learn more, visit our website: www.braskem.com.br/esclarecimento-alagoas
(Portuguese only)
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 66
SUPPLIERS
103-2, 103-3, 102-9, 308-1, 414-1, CRITERIA 2, 3, 6 AND 9 – COP
As an essential part of our successful
Parties. The Code was inspired by
regulations of the countries where
operations, our Suppliers are
widely accepted documents that
we operate. In addition, in the case
managed through a decentralized
include, among others, the UN
of contracts for industrial areas, all
structure, with areas responsible for
Universal Declaration of Human
Suppliers must also respond to and
cost analysis, quality assessment of
Rights, the procedures recommended
address ours minimum Health, Safety,
products and services, and adherence
by the International Labor
and Environment requirements,
to the Code of Conduct for Third
Organization (ILO), and the laws and
based on our HSE Policy.
PROPORTION OF SPENDING ON LOCAL SUPPLIERS BY COUNTRY* 204-1
NATIONAL
FOREIGN
2016
2017
2018
BRAZIL
24%
29%
41%
2016
6%
2017
7%
2018
2%
GERMANY
76%
71%
59%
94%
93%
98%
UNITED
STATES
1%
7%
4%
16%
25%
29%
MEXICO
*For the purpose of calculating this indicator, we consider national suppliers as “local,” and significant places of operations are the countries where we have industrial units.
99%
93%
96%
84%
75%
71%
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER MAIN SUPPLIER CATEGORIES
Ethanol: This product has one of
the most rigorous management
processes at Braskem. To ensure
compliance with mandatory
requirements, in 2016 we
launched the Responsible Ethanol
Procurement Program, also
intended to improve issues such
as slash and burn, biodiversity, and
best practices in environmental,
human rights, and labor aspects.
Fossil raw materials: 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.
67
Management of ethanol Suppliers
CRITERIA 6 - COP
Our management for this category of
In addition, 100% of the committed
Suppliers is based on compliance issues
supplier mills and a sample of their
(mandatory requirements) and excellence
sugarcane suppliers are audited by third
(points for continuous improvement). In
parties every two years. In 2018, Control
2018, 95% of the ethanol purchased by us
Union audited 20% of our supplier mills,
was produced by Suppliers that conformed
which demonstrated their continuous
to these two pillars. To this end, we guarantee
annual evolution. During this audit,
the commitment of 50% of SPOT supplier
three nonconformities were found in
mills. The other 50% signed, at least, our
a new partner, all related to supplier
Code of Conduct for Third Parties.
management. We will follow up on this
issue in 2019 to ensure mitigation of risks
related to fair work in the value chain.
% COMPLIANCE
97.0%
98.4%
98.7%
2016/17
2017/18
2018/19
7 Suppliers that, although registered at Braskem,
do not have supply agreements.
Click here to access our Code
of Conduct for Third Parties
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 68
PROCUREMENT CRITERIA 2 - COP
The year was of great importance for procurement.
Another tool is the quarterly Supplier evaluation
Responsible for contracting services (industrial
process. This evaluation generates the Supplier
and corporate), purchasing direct materials
Performance Index (IDF - Índice de Desempenho
(inputs), indirect materials (MRO), and equipment,
de Fornecedores) and is applied to all Suppliers
throughout the year we managed to advance our
considered critical in the sustainability assessment.
global operations, leverage important projects
Deviations identified through the assessment
for the procurement processes, implement new
are dealt with in an action plan involving the
technologies, train the team, and obtain significant
user areas, Suppliers and procurement.
gains to the company through our trading strategies.
We are also responsible for ensuring reliability,
through transparent purchases and following
the formal processes of the organization. To
this end, in addition to the information about
internal needs, it is important to have detailed
knowledge of our Suppliers to predict the financial
and managerial impacts of the negotiations.
Tools such as Suppliers Radar (which identifies
companies with greater exposure to labor and
economic risks) and due diligence processes are
examples of information that the procurement
area uses to better conduct its negotiations within
technical, quality, and cost criteria to ensure the
good performance of our operations, always with
consideration for ethics and responsibility.
Percentage of number
of Suppliers by type of service
With 4,636 Suppliers registered, we continue
working to become increasingly digital and global,
acting as a driver for sustainable development
throughout the supply chain in which we operate.
4.4%
4.7%
14.6%
INPUTS
LOGISTICS
MACHINERY, EQUIPMENT
AND INSTALLATIONS
ENERGY
TECHNICAL AND
COMPLEMENTARY SERVICES
42.6%
33.7%
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER More global and sustainable
The globalization process of procurement was started
in 2017 and developed in 2018 with the implementation
of several new procedures guided by our Global
Procurement Policy. Respecting the constraints and
needs of each region, in 2018 we strengthened our
position by identifying opportunities for development
of Suppliers with global presence and development of
contractual tools that allow us to leverage synergies.
Also in 2018 we put into practice the Sustainable
Procurement Tool, which provides a better social and
environmental risk assessment during the technical
evaluation phase of the bidding process. The platform
seeks to support the various purchasing areas by
including sustainability issues into their decision-
making process and consists of evaluations where
Suppliers report information about their management
of various aspects related to ours sustainability pillars.
This pilot program—carried out with the purchasing
categories that are critical in terms of social and
environmental impacts, of the industrial services,
and inputs areas—allowed the Procurement team to
conduct an evaluation with more robust criteria, of all
participants of the bidding processes, ensuring better
analysis to be included in Coupa, a global platform
together with the application of global compliance
decision-making. Also in 2018, the teams involved
for contracting in procurement and, in 2019, it will be
requirements through the Global Procurement Policy.
were trained and material was prepared concerning
implemented for the purchase categories deemed
the criteria and recommendations for the use of the
to be of high social and environmental impact.
It is also important to highlight the opportunities
tool. We are currently in the validation phase of these
generated by the synergy among the countries
criteria with company Leaders, Compliance, Legal
In addition, in 2019 our work should also be guided
where we operate and the integration of the
Department, and with the Getúlio Vargas Foundation
by the introduction of new technologies such as
teams with global company Leaders and forums
(FGV). After this process, we will seek approval from
the Purchasing Process Management Platform and
that rely on the contribution of Members from
senior management to complete and validate the
Warehouse Management Systems, promoting agility,
the various regions bringing their perspectives
implementation. Meanwhile, the tool is also under
simplification, and accuracy in managing warehouses,
and allowing the exchange of experiences.
69
COMPANY ENGAGED
CRITERIA 2 AND 8 - COP
In 2018 we were the Brazilian highlight
in the CDP Supply Chain ranking,
which evaluates the companies that
best engage their supply chains in
adopting new approaches to climate
change and water management. For
the first time we were included on the
Supplier Water A list and for the second
consecutive year, the Supplier Climate
A list. Among our main actions are
workshops to train suppliers, follow-
up on the implementation of possible
improvements identified, and the
annual application of a form for the
reporting of information related to
water and climate management.
Joint action between the procurement
and sustainable development areas
allows us to evolve in the CDP Supply
program through a continuous alignment
between CDP and purchasing areas,
incentive for Suppliers’ participation in
the program, and monitoring of response
rates. In addition, the procurement area
is working to increase the number of
CDP member companies in the industrial
segment, seeking to further strengthen
the program within our supply chain.
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TRANSFORMATION IN LOGISTICS
As part of the strategy to promote more
dynamic logistics and closer proximity
to the market and stakeholders, the area
of Chemicals and Vinyls—which works
primarily with the transportation of liquids
and gases—is implementing the Athena
project. Scheduled for completion in
2019, the project will allow us to create
a new structure focused on solutions,
prioritizing processes, communication, and
greater proximity to Suppliers through the
internationalization of part of the Maritime
Contracting team, implementation of
monitoring in the transportation fleet, and
automation and optimization of systems.
LOGISTICS
The year 2018 was very challenging for logistics, especially
With regard to the new purchasing and compliance guidelines,
after the general truck drivers’ strike in Brazil (in May 2018)
logistics has been strengthening its actions with service providers.
and the consequent establishment of a minimum freight
Considering the precarious infrastructure of the Brazilian
price by ANTT (National Agency for Land Transport). The
highways and the high theft rates, we held periodic meetings
immediate impact was a significant increase in the cost of
and conducted audits, cargo monitoring, and updating in terms
road freight transport of resins, which, as a consequence,
of our HSE (Health, Safety, and Environment) procedures, thus
mobilized the Logistics team to find alternative forms of
obtaining a 40% reduction in the number of cargo thefts and 20%
transport and negotiation in order to minimize impacts.
in the number of accidents on the roads when compared to 2017.
Thus, our logistics area has increased its efforts to use alternative
The Log2020 program (which includes operations, management,
and more sustainable modes, with coastal shipping gaining
planning, and contracting) advanced significantly in relation to
even greater importance. In this period alone we, increased by
2017, tripling the recurrent benefits in logistics projects, totaling
80% the volume transported through this mode in relation to
R$ 84 million. The benefits include a reduction of 80% in loading
what we transported in the previous year—with an expected
time in our units in Rio de Janeiro because of the automation of
reduction of approximately 80% of greenhouse gas emissions
the process, as well as productivity gains—through maximization
in the routes where maritime transportation was used instead
of storage areas (new layouts and areas, and improvements
of road transportation. In addition, we carried out a joint study
in stacking), packaging optimization, and improvement in
with specialized consultants to create an action plan focused on
the logistics network—and the reduction of storage costs.
increasing competitiveness of logistics, and developed specific
routes that allow us to operate trucks with greater capacity.
It is also worth mentioning the continued implementation
of transformational projects such as KISS8 (for
optimization of networks and inventories), Revolution9
(with improvements to order to cash processes and
Client service), as well as the strengthening of global
logistics actions for best practices in management.
In line with our sustainability strategy, the logistics area is also developing
packaging composed of recycled materials and is strongly engaged in the
Pellet Zero Program, part of the initiative to reduce marine debris.
8 Keep It Super Simple
9 Process for receiving and processing Client orders
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER Safety and responsibility
To ensure safety of all stakeholders involved in logistics
processes, we work with the main risk managers in Brazil
and freight tracking. We also hold regular meetings with our
service providers, ensuring that everyone is up-to-date on
our internal Health, Safety, and Environment processes,
• Program Na-Mão-Certa: Developed by OSCIP Childhood
and have annual audits at carrier headquarters.
Brazil, the program promotes the protection of children and
In addition, we are part of the following
road safety promotion programs:
adolescents in the country and ensures that issues related
to sexual abuse and exploitation are included in public and
private policies. In 2018, we were recognized for the third
consecutive year in this program for once again going
• Program Olho Vivo na Estrada: This helps prevent unsafe
beyond the annual goals established by Childhood Brazil.
behavior in the transportation of hazardous products through
We raised awareness of 749 truck drivers, 92 logistics third
driver awareness. It was instituted by ABIQUIM in partnership
parties, and 42 Members, in addition to the involvement
with ABICLOR. In 2018, we acted to raise awareness of
of 32% of the carriers that serve us. CRITERIA 4 - COP
more than 800 people involved in its logistics chain.
• Transportadora da Vida: This initiative by the Union of Cargo
and Logistics Transport Companies (SETCERGS) certifies cargo
transport companies that act with a greater emphasis on safety.
71
WELL-BEING CRITERIA 5 - COP
To ensure safety in our logistics processes,
it is also important to improve work
conditions for truck drivers and the quality
of the stop and rest areas, and reduce
waiting time. This can limit exposure to
prostitution and alcohol consumption.
In view of this, in 2018 we proceeded with
the approval of gas stations and, with the
support of the Buonny risk manager, we
approved 13% of the sites inspected in the year.
These advances have also provided a better
performance of logistics operations, as well
as safety and convenience for truck drivers.
This year we also supported the Diagnostics
of the Child and Adolescent Rights Guarantee
System in Camaçari, Dias d’Ávila, and Candeias.
We learned how the different public agencies act
in prevention, detection, and remediation, and
we will be able to develop, in 2019, a project for
territorial intervention that guarantees a more
efficient and coordinated action among them.
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THIRD-PARTY WORK
CONDITIONS CRITERIA 5 - COP
After improving the work environments
made available to third parties, in 2018 we
developed a pilot analysis of their work
conditions at Braskem. The infrastructure
of the workplaces, the reception and
inclusion of this group, and the knowledge
about the whistleblowing channel (Ethics
Line), among other factors, were evaluated.
The assessment will help define the
next interventions intended to provide
good work conditions to third parties.
PROCESS SAFETY
The logistics area continued with the structured program of risk studies
involving 19 new products whose operations are classified as medium
and low risk, based on the volume transported and their hazard.
Since its inception in 2015, 42 different hazardous products
produced and handled by us have already been evaluated.
During this process, 25 different carriers and 289 matrix road routes were analyzed,
23 of them with international destinations (Mercosur), in addition to six loading/
unloading bases. Audits were also carried out in 22 bonded warehouses. It is also worth
noting the adjustment made to the Logistics HSE procedures for implementation of
Intelius. In the maritime transport mode, 37 vessels were inspected by the Vetting
team. [Learn more about Intelius in the Health, Safety, and Environment section.]
Specific HSE assessments were also carried out in nine different maritime terminals
contracted by us and five of our own terminals. Inspections were based on international
standards such as the CDI-T (the Chemical Distribution Institute’s terminal inspection
program). With this process to identify risks and define preventive control barriers,
we focus on the prevention of accidents linked to its logistics operations.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 73
CLIENTS
We believe that plastic plays a key role in creating
innovation, technology, and responsibility, can
a more sustainable future. That’s why we work
transform the future. In five years, R$ 190 million
with our Clients and our value chains to develop
was invested in the export incentive program and
products and solutions that are increasingly
more than R$ 15 million in actions to promote
efficient and with a high potential for recycling and
the advantages and benefits of plastic.
reuse. For this vision to become a reality, we act in
an integrated way to develop new technologies, in
the design of new products, and in the generation
Wecycle: The initiative focuses on inspiring
businesses to value post-consumer plastic
of opportunities to innovate through projects
waste and the recycling chain, and mitigating
and partnerships that strengthen the circular
the associated environmental and social risks.
economy. Among our main initiatives are:
Through partnerships with Clients, recyclers, and
cooperatives and companies that own consumer
Circular economy: Among the initiatives
defined is the development of partnerships with
brands, the platform is supported by four main
pillars: technical reliability, environmental and
Clients in designing new products to expand
social responsibility, traceability of origin, and
and facilitate recycling and reuse of plastic
correct destination of the products throughout the
packaging, especially one-way packaging.
chain. [Click here to learn more about Wecycle]
[Click here to learn more about circular economy]
PICPlast: A partnership with the Brazilian Plastics
Industry Association (ABIPLAST), the initiative
Selo Maxio®: These eco-efficient resins offer
benefits such as reduced energy consumption
during processing, increased productivity, and
promotes the export of processed products,
reduced weight of the final product—factors
to encourage competitiveness and innovation
that minimize the environmental impacts of
in the sector. In 2018, more than R$ 40 million
the production process of numerous products.
was invested in actions such as PlastCoLab, an
In 2018, we incorporated into the Maxio family
interactive space whose second edition was held
the HDPE HD4601U, a resin that enables the
in Porto Alegre, directly impacting more than
rotomolding process to occur faster than
6,000 people through exhibitions and activities
with similar resins, resulting in lower power
that showcase how plastic, combined with
consumption and higher productivity.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER VERSATILITY, INNOVATION, AND PARTNERSHIPS
Throughout 2018, we worked on several projects with our
Clients to develop solutions for a more responsible and
sustainable use of plastic. Among them is a partnership with
Condor, a manufacturer of materials for real estate painting,
to create the Special Sustainable Painting Kit, using post-
consumer plastic. The product originates from the reuse
of plastic packaging of printing inks and road markings.
In another partnership, with Pão de Açúcar, one of the leading
retailers in Brazil and a pioneer in the collection of post-
consumer materials, we and Embalixo will produce new garbage
bags using plastic materials discarded by customers at Pão
de Açúcar recycling stations and industrial sacks previously
used by Braskem to deliver its resins. In addition, along with
Leroy Merlin (one of the largest chains of construction material
stores in Brazil) and Martiplast, we developed organizers
made of 100% recycled plastic under the Ou brand.
All of these initiatives are part of the Wecycle platform, which
uses innovation in the service of sustainable solutions and the
development of business and initiatives that value plastic waste.
74
LIGHTWEIGHT AND PRACTICAL
A partnership between Braskem and Cartonale, the
largest producer of corrugated plastic solutions in
Latin America, supplied Polypropylene (PP) panels to
isolate the perimeter of Braskem’s new Technology
and Innovation Center at the Triunfo Petrochemical
Complex. Lighter and easier to handle, PP panels
allow artwork to be printed directly onto the material,
requiring no adhesives or paint. More resistant, they
can also be used more than once, which makes
the product more sustainable. Another advantage
is that at the end of the useful life of the plastic
panels, they are 100% recyclable. In addition, they
will provide a more economical, convenient, and safe
disassembly, since they require fewer people to be
taken down and transported to other locations.
FLOATING PANELS
Since 2017 we have supported our client
Ciel & Terre Brasil, a joint venture between
the French company Ciel & Terre and
the Brazilian company Sunlution, in the
implementation of its solar energy generation
technology using floating panels made with
PE supplied by our known as Hydrelio®.
The most recent project developed
was the creation of a floating solar farm
in the reservoir of the Sobradinho
Hydroelectric Plant with an
approximate area of 5 hectares
(equivalent to five soccer fields)
and capacity to generate
5MWp of energy.
DESIGN CHALLENGE
Created to introduce plastic to future
architects and designers as a versatile and
adaptable material, the Design Challenge
has reached its sixth edition and provides
students with a market development
experience through two months of
immersion and training with renowned
professionals in the field. The winning team
in 2018, from Centro Universitário Belas
Artes in São Paulo, created an innovative
and multifunctional water cooler from
plastic, in partnership with Esmaltec.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 75
GOVERNMENT 103-2, 103-3, 201-4
Responsibility, integrity, and transparency are
grant under Complementary Law No. 160/2017, the
values that we practice in our daily lives and
amount for 2018 was allocated to reserve for tax
in relationships with all our stakeholders. Our
incentives, pursuant to Art. 195-A of Law 6,404/76.
operating model values open dialogue and
commitment to ethical management.
Since 2015, we have also obtained approval for our
requests to reduce by 75% the income tax on earnings
We have a tax incentive for ICMS (Value Added Tax on
from our industrial units located in the states of
Goods and Services) granted by the State of Alagoas
Alagoas and Bahia. This incentive is granted by the
through the State Integrated Development Program
Superintendency of Development of the Northeast
(PRODESIN), which assists in the state’s industrial
(SUDENE) and has a 10-year term of enjoyment. In
development, in consideration for the investment of
2018, we recorded a tax loss in our operations in Brazil,
US$ 500 million made by Braskem in the new Alagoas
and no deduction is possible in terms of tax incentive.
PVC plant implemented in 2012 in the Marechal
Deodoro Industrial District. This incentive is treated
Considering financial operations, funding was obtained
as a reduction of taxes levied upon sales and, in 2018,
from a national government agency in 2016, financing
the amount calculated was R$ 81.9 million. Since
from a national public agency in 2018, and financing
PRODESIN was recognized in 2018 as an investment
with international public agencies in 2017 and 2018.
Total tax incentives / credits*
PRODESIN - ICMS (R$ million)
SUDENE - income tax (R$ million)
Total grants (R$ million)
Grant - national agencies (R$ million)
Total financing (R$ million)
Financing - national government agencies
Financing - foreign government agencies - ECAs (R$ million)**
2016
2017
2018
78.8
78.8
-
0.45
0.45
-
-
-
167.4
95.7
71.7
-
-
420
-
420.4
81.9
81.9
-
-
-
1,732.1
0.45
1,731.7
* Tax incentives/credits: Tax incentives for ICMS, granted by the Government of Alagoas through the Integrated Development Program of the State of
Alagoas - PRODESIN, and income tax granted by the Superintendency of Development of the Northeast - SUDENE
** ECAs - Export Credit Agencies: Financing incentivized by NEXI (Japanese ECA) Euler Hermes (German ECA) and SACE (Italian ECA). Financing
granted in USD - For conversion purposes the exchange adopted was that on the date of entry of funds into the company’s cash account.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 76
HEALTH,
SAFETY, AND
ENVIRONMENT
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 77
GAP ASSESSMENT CRITERIA 8 - COP
Throughout 2018, all of our units worldwide performed a process called
gap assessment—a self-assessment to determine the points that
needed to be improved to meet the basic requirements and evolution of
performance indicators as defined by Intelius. This process was finalized in
December 2018 and, based on this evaluation, each of the plants developed
an action plan to be implemented according to their own schedule. The
first audit cycles for evaluating the units will take place in 2019.
HEALTH, SAFETY,
AND ENVIRONMENT
103-2, 403-1, CRITERIA 11 - COP
encouraging the collaboration of Members for continuous
improvement of processes and company performance.
The global nature of Intelius is its greatest highlight.
Bringing together the best of each country in a single
system, it is possible to eliminate redundancies and
inconsistencies and create new mechanisms for
Always looking for improvements in the safety, efficiency,
sharing best practices among all Members, allowing for
and sustainability of our production processes,
communication on several subjects. The system also
throughout 2018 we strived to implement our new
establishes unified panels of indicators, which will be
Integrated Management System—Intelius—which
made available on an online platform. To increase the
involves a set of guidelines and international best
knowledge of Members, training was carried out on the
practices aligned with our strategy of sustainability,
Intelius modules, with 4,401 people being trained in 2018.
continuous improvement, and globalization.
With Intelius, previous systems no longer exist, but the
Implementation started in the second quarter of 2018,
implementation did not significantly impact routine
and Intelius is now integrating SEMPRE’s EHS, Quality, and
plant activities. Intelius acts as a provider of guidelines
Industrial Excellence requirements—which since 2013 have
on the necessary actions in the industrial areas—without
helped us reinforce the culture of risk prevention based on
restrictions on the form—thus allowing autonomy and
discipline and respect for safety processes and procedures.
independence in making operational decisions, providing
Through Intelius, we will unify global best practices,
greater simplification and integration. Intelius is currently
always taking into account local requirements, thus
organized into three vertical and two transverse pillars.
HES
Quality
Industrial
effectiveness
Pillars are the
Intelius modules
based on current
systems
Performance
Management
Continuous
Improvement &
Good Practice
Sharing
Cross-cutting topics
increase synergy and
avoid redundancy
between systems
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 78
OCCUPATIONAL
HEALTH AND SAFETY
103-2, 103-3, 403-2, 403-9, 403-10, CRITERIA 9 AND 10 - COP
Caring for the health and safety of our Members is an
essential value for us. As part of our macro goals for
sustainable development, we work to be among the
Regarding the indicators, in 2018, the frequency
were related to falling and stumbling during walking
benchmarks in terms of health, operational, product, labor
rate of accidents with and without lost time (CAF
and climbing ladders. The same applies to the lost-
safety and process safety in the global chemical industry,
+ SAF), considering Members and third parties per
time injury frequency rate, considering Members
and to annually advance in our goals and performance.
million hours worked, presented a small increase of
and Partners per million hours worked, with a 56%
4% over the previous year. Many of these events
increase and with an 11% increase in severity rate.
But, even with constant reinforcement and prevention
work, in 2018, there were two occurrences related to
occupational disease: an instance of worsening of hearing
loss and a new case of illness related to exposure to
external leakage. As part of the continuous improvement
process, we continue to strengthen its global alignment
and standardization for the identification, evaluation, and
NUMBER OF ACCIDENTS X 1MM/MHW
2014
2015
2016
2017
2018
GOAL
2019
control of occupational diseases. In this sense, 12 global
Accident frequency rate (SAF + CAF)
0.97
0.68
0.8
1.02
1.07
0,75
occupational health and hygiene standards have been
developed in Intelius that will reinforce this strategy. It
is worth noting that in 2018 we did not register any fatal
accidents, either involving Members or contractors.
In accident prevention, we continue to implement
Accident frequency rate (CAF)
Accident frequency rate (CAF) third parties
0.14
0.14
0.26
0.20
0.24
0.29
0.33
0.23
0.53
0.46
0
actions and campaigns related to human reliability, as
Severity rate
12.53
47.38
179.03
35.33
183*
well as the development of new global standards for
occupational safety. We use a methodology called PUMA
Number of fatal accidents
(Perception, Unfitness, Motivation, Ability) for accident
investigation associated with human behavior.
Occupational disease frequency rate
0
0
0
0
1
0
0
0
0
0.12
* Increase in value compared to the previous year was due to the evolution of the gravity of a case occurred in 2018 certified after evolution and stabilization of the clinical state.
Click here to view our HSE policy (Portuguese only).
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 79
OCCUPATIONAL SAFETY
AND RISK MANAGEMENT
103-2, 403-2, 403-3, 403-4, 403-5
At Braskem, the aspects of occupational health
and hygiene are part of the same area and same
coordination. The objective is integration, since
the risks mapped and controlled by one area are
monitored by the other, through the health profile of
the worker. In relation to the facilities, almost 100%
of our units have medical care units in the work
environment, facilitating access and surveillance of
Members’ health. The exception is remote offices
where we have between one and 10 Members.
Management of health risks and occupational safety
are also part of the management system. This element
is composed of four global standards, one of which is
specific to risk management. This standard defines
the processes, including our risk matrix and actions for
their reduction. In addition, other elements, such as
process safety management, environment, personal
safety, and occupational health and hygiene, address
their specific risks. Each of these elements defines
specific strategies for such management, such
as audits, inspections, and international technical
reference tools. The application of these tools is
always done by qualified professionals, in the routine
activities or otherwise, of Members and contractors.
The risk identification process is carried out
with the participation of qualified professionals,
whether Members or contractors. In addition, it is
part of our culture to maintain an open channel
between professionals and the Health, Safety,
and Environment team, which can be a way to
communicate unidentified risks. Our Global HSE
Guideline states that “every site or plant must ensure
that Team Members are authorized to prevent
any act or situation that is considered unsafe”—a
requirement that helps protect all Members and
contractors from potential occupational hazards.
OUR RISK IDENTIFICATION PROCESS IS
CARRIED OUT WITH THE PARTICIPATION
OF QUALIFIED PROFESSIONALS
HUMAN RELIABILITY
Evaluating the minor incidents that occurred in 2018, we realized
that many of them are associated with distraction and lack of
concentration while performing routine activities. Therefore,
we began to implement and invest in human reliability actions
in all regions where we operate. Among the issues prioritized is
mindfulness—the element needed to ensure safety in operations.
The action plan for this project was designed throughout 2018, with
training already done with Leaders and the creation of a Technical
team responsible for work governance in the coming years. In 2019,
training will begin in the production units.
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > PROCESS SAFETY
103-2, 103-3, 413-2
Critical to operations, safety in our production processes is
the result of strong commitment—and continuous training—
of the teams. Our process safety management prioritizes
proactive indicators and is always in search of a culture of
prevention. To this end, we have in place an ongoing risk
analysis program in the industrial processes for improvement
through the implementation of specific recommendations.
Combat, emergency, and evasion plans are developed
for accident scenarios, in line with risk studies. Regarding
technical training, there are structured plans for training and
retraining of Members on topics regarding process safety.
TIER
1
2
3
Incident with loss of containment and release of
product above cut-off point
Incident with loss of containment, but release of
product below cut-off point
Incident with small loss of containment
or system failure that could potentially
lead to a process accident
80
Throughout 2018, five Tier 1 events were recorded (1
less than in the previous year), with a rate of 0.12 per
million hours worked (14% less than 2017)—a number
compatible with the best process safety benchmarks
of companies in the U.S. chemical industry (0.34 is
the average rate of U.S. companies in recent years).
TIER 1 - No. OF EVENTS
2014
2015
2016
2017
2018
4
11
9
6
5
TIER 1 - FREQUENCY RATE
2014
0.09
2015
0.32
2016
0.22
2017
0.14
2018
GOAL
2019
0.12
0.12
TIER 1 - SEVERITY RATE
2014
0.25
2015
3.41
2016
0.68
2017
0.77
2018
0.30
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 81
PRODUCT SAFETY
103-2, 103-3, 416-1, 416-2, 417-1, 417-2
Our assessment of impacts of products and services
on health and safety is in line with our ongoing
evolution with a focus on sustainable development.
In this way, we have a constant process for evaluation
and international benchmarking, which analyzes
For Tier 2, we also see a downward trend, with 26 incidents recorded
in 2018 (five less than the previous year). The accident rate per
million hours worked fell from 0.74 to 0.60, a reduction of 19%.
TIER 2 - NO. OF EVENTS
2014
2015
2016
2017
2018
49
40
37
31
26
TIER 2 - FREQUENCY RATE
2014
2015
1.13
1.17
2016
0.90
2017
0.74
2018
META 2019
our practices and seeks improvements.
0.60
O.60
In 2018, 100% of our products and services were analyzed
for their impacts on health and safety. In addition, based
on our annual audits at all plants, there were no events
In Tier 3, we once again observed an increase in the number of occurrences
of non-compliance regarding regulations or voluntary
– a result of an improvement in the recording methodology and of the
codes related to labeling or communication. We point
commitment of the Members to reporting any type of deviation that could
out that our labels are reviewed and updated periodically
cause a loss of primary containment, in order to reduce minor events.
Risk Rating
Even though we do not have a target for this indicator,
in 2018, we advanced in Risk Rating results. Today all
of our plants already meet the international level of
“Standard,” and half are at the “Above Standard” level.
and comply with global health and safety policies and
guidelines, and with the six GHS labeling elements.
We also partner with key stakeholders (including ABIQUIM10,
ACC11, Plastics Industry Association, and Plastics Europe)
to recognize and mitigate risks associated with the
In addition, we improved and made available to stakeholders
use of products for people and the environment, and
all Data Sheets and Material Safety Data Sheets (MSDSs)
promote the benefits to our society. In Brazil, we are
of our products, in accordance with the applicable
contributing to the development of the future Brazilian
laws. With increased knowledge of end-use products
Chemical Safety Regulation, in addition to advocating
and applications, we have been able to meet national
for regulatory legislation and its gradual implementation,
and international regulatory approvals and enter new
which will bring the country a better understanding of
markets, ensuring safety to our clients and business.
the risks and benefits that encompass chemicals.
10 Associação Brasileira da Indústria Química (ABIQUIM) - Brazilian
Chemical Industry Association
11 American Chemistry Council - ACC
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 82
TYPE OF EXPENDITURE (R$ MILLION)
2016
2017
2018
INVESTMENTS
AND GAINS IN
ENVIRONMENTAL
PROTECTION 103-2, 103-3
Our strategy toward the development of increasingly sustainable
products and solutions begins with a concern for safety and with our
production methods. To this end, we have annual goals and variable
investments according to the needs of each plant, region, schedules of
maintenance shutdowns, recertification, and business strategy, among
others. In 2018 the amounts invested in these initiatives increased by
almost 30% compared with 2017, showing our focus on improvements
in aspects of HSE, where total spending increased almost 14%.
Investments in HSE
Expenditure on treatment
of effluents and waste
Management of emissions
Environmental licenses
Depreciation
Provision for recovery of environmental
damages (environmental liabilities)
Other environmental management costs
Workplace safety
Process safety
Health
Environment
Total
Treatment of liquid effluents
Waste management
Total
51.4
25.9
2.8
23.8
103.9
51.1
55.3
106.4
7.9
1.0
46.0
182.6
59.7
7.5
87.6
3.9
13.1
112.1
52.6
57.2
109.8
8.8
1.0
46.0
102.5
48.9
16.5
113.3
5.6
10.2
145.4
60.1
82.0
142.1
6.7
1.1
46.0
89.4
57.9
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 83
Monitoring of costs avoided through
improvement projects is also part of HSE
management. In 2018, events internal
and external to the company negatively
impacted our avoided costs, mainly in
our production was below plan. It is worth
eco-indicators that, in aggregate, did not
noting that our energy consumption
reach the goals, generating additional
is predominantly of thermal origin, so
expenses instead of savings, when
projects involving improvements in energy
compared to the target established for the
efficiency also have a positive impact
year. Compared with the historical data
on emissions and on avoided costs.
from the beginning of Braskem in 2002,
we observed an evolution in general.
Braskem, in the continuous improvement
of its indicators, reformulated its
These events include the incident in the
methodology to calculate and present
electric substation of the Chlor-Alkali
avoided costs to establish an economic
plant in Alagoas, the truck drivers’ strike
valuation parameter based on the
in Brazil—which generated problems with
improvement of socioenvironmental
inflow and outflow of products and inputs
indices, considering 2002 as a baseline, the
and reduced production—and a blackout
year the company started its operations.
in Northeast Brazil. Due to these factors,
As shown in the following table, the costs
avoided since the year we went into
operation (2002) until 2018 were US$
2,768,984,399.00 for all operations in Brazil,
Germany, the United States, and Mexico.
OUR STRATEGY STARTS AT A CONCERN WITH THE SECURITYBRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 84
WE WORK TO
ENSURE A PROCESS
FOR IMPROVEMENT
TO BE CONTINUED
IN OUR INDICATORS
COSTS AVOIDED - MANAGEMENT OF HEALTH, SAFETY, AND ENVIRONMENT
DIMENSION (R$ MILLION)
2002
TO 2014
2015
2016
2017
2018
2002-2018
Workplace safety
42,570,000
6,150,000
5,030,000
5,850,000
5,640,000
65,240,000
Safety
Process safety
2,164,384
- 7,397,260
4,684,932
1,260,274
1,903,968
2,616,297
Waste generation
171,086,342
24,876,883
25,897,298
27,951,463
25,184,154
274,996,142
Water consumption
- 11,484,509
1,949,138
4,930,722
4,021,398
- 3,180,674
- 3,763,926
Environment
Effluent generation
64,428,893
9,623,867
10,962,052
12,441,199
9,625,041
107,081,052
Energy consumption
979,395,109
179,879,004
228,210,998
198,391,572
127,833,979
1,713,710,661
GHG emissions
285,510,718
79,183,714
58,699,075
116,243,528
69,467,138
609,104,173
TOTAL
1,533,670,936
294,265,345
338,415,078
366,159,433
236,473,607
2,768,984,399
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 85
WATER EFFICIENCY
103-2, 103-3, 303-1, 303-2, 303-3, 303-4, 303-5, 306-1
Aware of the importance of responsible use of water
with strategic areas of the company to obtain accurate and
resources and of our role as a benchmark in the global
qualified information on extreme climate events related to
chemical industry, the company’s water processes
water. In tandem with this research, an analysis of the future
are integrated into the management of business
risks through the Enterprise Risk Management (ERM)
platform. Our primary use of water occurs across the
projections related to the climate was made, considering the
scenarios defined by INPE12 , IPCC13 , and WRI14 until 2040.
Based on the survey of historical data and future projections,
production process of our 41 industrial plants, mainly
all risks and opportunities related to water were prioritized.
for cooling systems, steam generation, consumption in
processes and products, and disposal of effluents.
It is worth mentioning that since 2017 we have developed
action plans for all the plants located in high-risk river
We draw water from different sources, including surface
basins (four Brazilian river basins). These plans consider
water, groundwater, and third-party sources (including
alternatives such as water reuse and desalination,
reuse). Given the nature of our operations, we are legally
including evaluations of partnership with local sanitation
obliged to monitor our liquid discharges (parameters
companies and, depending on the location, a partnership
such as pH, temperature, sediments, oils, floating
with other businesses. We also monitor 100% of our supply
materials, and hydrocarbons, among many others).
chain, which is encouraged to report impacts that may
indirectly affect us (for example, disruption in production).
To identify, assess, and respond to water-related risks in our
Where necessary, suppliers receive individual support to
direct and value chain stages, the Sustainable Development
identify potential opportunities for collaborative actions
team worked with focal points of all industrial plants and
and to develop action plans to address the risks.
12 Instituto Nacional de Pesquisas Espaciais (Inpe)
13 Painel Intergovernamental sobre Mudanças Climáticas (em inglês,
Intergovernmental Panel on Climate Change - IPCC)
14 World Resources Institute
GLOBAL HIGHLIGHT CRITERIA 18 - COP
We presented our water case at the SDGs in Brazil
Global Compact event - The Role of the Private
Sector, held in September 2018 in New York, in parallel
programming to the UN General Assembly. The
selected cases were chosen after the evaluation of 80
registered cases, in a process conducted by a panel of
independent jurors, based on criteria created by PwC.
Our water case was also selected as a highlight for the
global 10-year celebration event of the CDP Supply
Chain in Las Vegas in February 2019, and is globally
recognized as one of the best initiatives.
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > MANAGEMENT OF
CONTAMINATED WATER
We have in place a robust management of
contaminated areas, with guidelines in our
integrated management system that provide
for preventive and corrective management of
environmental liabilities. With goals and results
directly monitored by the company’s senior
management, the industrial units work with a
focus on prevention of liabilities and, should
they occur, investigation and treatment, always
seeking the best technical solution.
To carry out cross-cutting management of the
topic, a group of specialists was created. They
convene periodically to discuss specific aspects,
such as supplier assessment, new projects,
preventive actions to liabilities, legislation, new
techniques, internal and external benchmarking
to learn about the systems for prevention and
remediation, and creation/revision of technical
standards on contaminated areas.
WATER CONSUMPTION AND EFFLUENT GENERATION
We monitor our water consumption and reuse on a monthly basis through specific eco-efficiency
indicators, relating consumption to the volume of products produced and marketed, and a reuse
indicator that correlates the volume of reclaimed water consumed with the total volume of water
consumed by the organization. Thus, in 2018 water consumption was 4.28 m³/t, up 7.5% over
the previous year and 5.1% above the target established for the year. In absolute numbers, we
consumed 75.7 billion liters (megaliters) of water in its production processes.
86
WATER CONSUMPTION (M3/T)
2002
4.14
...
2014
2015
2016
2017
2018
GOAL 2019
4.16
4.05
3.93
3.98
4.28
4.09
Some of our units receive or withdraw water and distribute it to other companies (not all owned by us).
Therefore, consumption will normally be lower than withdrawal. In 2018, the company’s water withdrawal
profile was:
SOURCE
Volume
(megaliters)
SURFACE
WATER
GROUNDWATER
SEA WATER
PRODUCED
WATER
ACQUIRED
WATER
(THIRD PARTY)
20.7
4.2
0
0
54.2
Regarding effluents, all units have pre-defined standards for discharge in accordance with local legislation
and formal internal procedures, reporting discharge precautions, and standards for disposal, among others.
Some plants have laboratories capable of analyzing the effluents they generate. These laboratories also
develop internal standards for environmental quality assessment. Each region where we operate has its
own characteristics, as well as substances of interest regarding the composition of the effluents. These
substances are listed in specific legislation or in the operating licenses.
Our eco-efficiency in generation of liquid effluents was 1.19 m³/t, down 12.3% over 2017 and 6.2% above the
target established for 2018. Generation of effluents totaled 21 billion liters (megaliters) in 2018.
EFFLUENT GENERATION (M3/T)
2002
1.94
...
2014
2015
2016
2017
2018
GOAL 2019
1.28
1.15
1.11
1.06
1.19
1.12
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > In 2018, we or the treatment units that receive our effluent, discharged, after treatment, into the following
receiving bodies:
SURFACE WATER
GROUNDWATER
(MEGALITERS/
YEAR)
OCEAN
(MEGALITERS/
YEAR)
THIRD PARTY
(FOR USE)
(MEGALITERS/
YEAR)
OTHER(1)
(MEGALITERS/
YEAR)
7.3
0
9.5
0.1
4.1
1Final disposal on the ground in the units of Southern Brazil.
The major impacts on these results were, in addition to internal and external events (such as truckers’
strike and blackout in Northeast Brazil), scheduled and unplanned shutdowns, higher temperatures and
worsening water quality, increasing consumption of water and purges in cooling towers.
Part 1
Part 2
Click here for more information on our water
consumption and effluent generation.
87
RESPONSIBLE OPERATION
Per CDP, we are again among the 126 companies included on the
Climate A list and among the 27 companies on the Water A list.
Throughout the world, we are among the 16 companies that have
achieved the maximum classification in both categories, of which
only two are Brazilian. Three are in the global chemical sector. CDP
is a non-profit organization that selects the best publicly traded
companies in the world in relation to managing greenhouse gas
emissions, water consumption, and use of forests. The responsible
use of water and the search for innovative solutions to preserve
it are part of our macro goals for sustainable development. Read
about some of our main initiatives:
Sewage treatment CRITERIA 18 - COP
We are one of the supporters of the Mogi+Água project, carried out by
the Trata Brasil Institute and the Municipal Department of Agriculture
of the Municipality of Mogi das Cruzes, in São Paulo (Brazil). With
technology developed by one of the startups of the Braskem Labs
program to reduce sewage and generate water to irrigate plants
and clean floors, the goal of the project is to install portable sewage
treatment plants on rural properties in the municipality.
The idea is also to promote the quality of rivers and streams in
the region of Mogi. To this end, rural properties in the district of
Cocuera will be the first beneficiaries, since it is the entrance of
the Tietê River basin in the city.
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< >
88
Less Loss More Water movement
CRITERIA 18 - COP
An initiative of the Brazil Network of the UN
Global Compact, led by us with Sociedade de
Abastecimento de Água e Saneamento of Campinas
(Sanasa) and Schneider Electric, the Less Loss More
Water movement seeks to obtain a commitment
from public agents to improve water management
and the urban distribution system in the country.
Throughout 2018, the movement was present at
several important events in Brazil and abroad, such as
the 8th World Water Forum, the annual meeting of the
UN Global Compact in New York, and Rio Water Week.
Less Loss More Water has also released an
update on the situation of losses in potable water
distribution systems in Brazil. The work, conducted
in partnership with the Trata Brasil Institute, was
highlighted in the media. The year also marked the
creation of bylaws for the movement, the formation
of the first council, and the expansion in the number
of leading companies.
Reuse
In 2018, 26.3% of the total water consumed in our operations
came from reuse processes, 16.0% of which resulted from process
improvement (effort) and 10.3% from the original operation of
the plant (born with the project of the plant). In 2018, we avoided
consumption of 20.4 billion liters of water from springs as a result
of reuse projects. The numbers have remained stable in recent
years, but there is growth potential in the future because of water
security projects in the Southeast and Northeast of Brazil.
TYPE OF REUSE
2014
2015
2016
2017
2018
Process improvements(1)
17.2%
15.6%
16.2%
16.6%
16.0%
Inherent reuse(2)
11.0%
9.5%
8.3%
10.4%
10.3%
Total
28.2%
25.1%
24.5% 25.8% 26.3%
1 Reuse of process improvements is any reuse originating from modifications in the current
units, including or improving processes.
2 Inherent reuse is any use that was born with the industrial unit and is part of the original
process of the plant. The number for the previous year is always used given the complexity
to generate the number.
AQUAPOLO
A partnership between Sabesp (São Paulo State
Basic Sanitation Company) and BRK Ambiental, the
Aquapolo project helps transform treated sewage
into reuse water for industrial activities. With capacity
to produce 1,000 liters/second of reuse water, it is
considered the largest project in the sector in South
America and the fifth largest in the world.
In all our units in the ABC region, in Greater São
Paulo (Brazil), we are already using 97% reuse water
in our operations—a project so relevant that it
allowed us to maintain our normal activities even
during the severe drought that hit the Southeast
region of the country in 2015.
*Regiões de estresse hídrico
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< >
ENERGY
EFFICIENCY
103-2, 103-3, 302-1, 302-3, 302-4
We continuously seek solutions that help improve
efficiency and reduce energy consumption in our
production units—from an environmental and economic
standpoint. In 2018, our energy consumption was 10.94
GJ/t, an increase of 3.1% over 2017 and 2.9% above the
target established for the year. As in our water efficiency
results, events such as the incident in the electric
substation of the Chlor-Alkali unit in Alagoas, the truck
drivers’ strike in Brazil, the blackout in the Northeast of
the country, and planned and unplanned shutdowns
had a significant impact on failing to reach the target.
89
ENERGY CONSUMPTION (GJ/T)
2002
11.90
...
2014
2015
2016
2017
2018
10.74
10.49
10.25
10.56
10.94
GOAL
2019
10.47
INITIATIVES FOR PROCESS
IMPROVEMENTS
ECONOMIC GAIN
(R$ MILLION)
REDUCTION IN ENERGY
CONSUMPTION (GJ)*
Improvements in production processes
(except furnaces) and sale of electricity
35,782,578.17
1,340,059
Furnace optimization
34,389,621.81
Reduced steam consumption
24,145,895.37
Improvements in boilers and turbines
6,422,638.60
TOTAL
100,740,733.95
878,698
207,807
192,153
2,618,717
*The calculation methodology considers the total GJ consumed divided by the total tonnage produced. The reduction in energy con-
sumption is a result of improvements in the ratio of products per consumption of GJ in the historical series.
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 90
ENERGY MATRIX
Among factors influencing our energy matrix, in 2018 we had an increase in
consumption of natural gas due to the greater use of ethane as feedstock in Bahia,
as well as greater consumption in Mexico. Regarding external fuels, we had an
increase in the consumption of coal in the Químicos 2 plant - Rio Grande do Sul.
PERCENTAGE OF CONSUMPTION BY TYPE OF ENERGY
PER TOTAL CONSUMPTION
Electric
Natural gas
Other external fuels
(mainly oil and coal)
Residual fuels from
the petrochemical
process
2014
10.2%
13.0%
5.2%
2015
9.0%
16.0%
5.5%
2016
9.0%
20.0%
6.0%
2017
9.9%
22.4%
4.7%
2018
9.1%
24.0%
6.7%
71.6%
68.8%
65.0%
62.9%
60.2%
PERCENTAGE OF CONSUMPTION OF RENEWABLE
ELECTRIC ENERGY PER TOTAL ENERGY CONSUMPTION
PERCENTAGE OF RENEWABLE ENERGY CONSUMPTION
PER TOTAL ENERGY CONSUMPTION
2015
2016
2017
2018
Renewable electric energy (%)
68%
73%
Renewable electric energy
(self-declared) (%)
-
-
76%
83%
74%
81%*
*Some processes for obtaining self-declarations are still ongoing.
2014
2015
2016
2017
2018
7.17%
8.26%
7.44%
7.60%
7.11%
To calculate the percentages of renewable energy, we considered the hydrogen
burned from the Chlor-Alkali electrolysis as renewable and considered the
percentage of renewable electric energy in the matrix of each country.
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 91
WASTE MANAGEMENT
103-2, 103-3, 301-2, 301-3, 306-2
The correct management of our waste and the increasing investments
in renewable raw materials are initiatives already integrated into our
operating strategy. Thus, monthly we monitor these numbers through
eco-efficiency indicators that relate the volume of waste generated with
the quantity of products produced and marketed. Therefore, we work to
increase reuse in our industrial units every year by means of return of flows
— the equivalent of internal recycling—in addition to investments that in
the future will enable us to perform energy and chemical recycling.
RENEWABLE AND EFFICIENT
Among the initiatives to be an increasingly efficient and modern
company in energy generation, in 2018 we kicked off two large
renewable generation projects that will start operating between
2019 and 2021.
The first was a commitment to enable the expansion of EDF
Renewable’s wind farm in Bahia. The new renewable energy park,
located in the municipality of Campo Formoso, 350 km northwest
of Salvador, will help put Bahia among the leaders in the wind
energy sector in the coming years. To enable this expansion, we
have committed to purchase wind energy from this park for 20
years, a move that will reduce the amount of CO2 emissions by
325,000 tons over the term of the agreement.
.
Another project involves our joint investment with Siemens, of approximately
R$ 600 million, in the modernization of our plant’s electricity system at the ABC
Petrochemical Complex in São Paulo. The project, which will reduce electricity
consumption and CO2 emissions, foresees the replacement of steam turbines with
high-efficiency electric motors, supported by new cogeneration of energy fueled
by residual gas from the petrochemical production process. In order to enable
the investment in the new cogeneration plant, we signed a 15-year contract with
Siemens in the Build, Own and Operate modality. In addition to providing greater
safety and reliability to the processes, with this retrofit, we estimate a reduction in
energy consumption equivalent to that of a city with a population of 1 million. The
investment started in 2019 and its completion is expected in 2021.
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > We work with strict targets for total waste generation (hazardous and non-
hazardous), defined and adjusted annually for a period of five years. In 2018, generation
was 2.13 kg/t, 2.5% above the target, but in line with the results of 2017.
In 2018, destination by type of waste was carried out as follows:
92
WASTE GENERATION (KG/T)
2002
7.78
...
2014
2015
2016
2017
2018
GOAL 2019
2.30
2.01
2.16
2.13
2.13
2.29
The waste generated was disposed of as follows:
2014
2015
2016
DISPOSED
WASTE (t)
Recycling
Recovery (including energy)
7,930
5,424
Sanitary and industrial landfills
21,493
On-site storage
Incineration
Reuse
Composting
Underground waste injection
Other*
TOTAL
748
20,408
238
662
7,960
5,000
69,863
4,628
3,975
2,804
1,859
1,713
739
274
0
3,700
19,692
7,371
7,247
9,146
1,303
8,423
482
475
1,931
17,022
2017
6,830
6,370
8,980
455
8,199
505
299
1,756
5,258
1 Other: autoclaving, vacuum thermal desorption of mercury, co-processing of waste in rotary clinker kilns for the production of ce-
ment, soil decontamination by thermal desorption
53,400
38,652
DESTINATION1
Hazardous
waste (t/year)
Non-hazardous
waste (t/year)
Recycled
Reuse (reclaim)
Composting
Recovery (including energy)
Incineration
Underground injection
Sanitary and industrial landfills
Temporary internal storage
Other2
2018
6,092
275
259
1,321
865
899
12,341
48
73
2018
1,639
182
134
2,034
7,123
-
3,649
1,212
4,755
¹ We had adjustments to our waste data reporting methodology to better qualify the information and increase
transparency, thus initiating the detailed reporting from 2018.
² Other: autoclaving, vacuum thermal desorption of mercury, co-processing of waste in rotary clinker kilns for
the production of cement, soil decontamination by thermal desorption.
2018
7,731
3,355
15,990
1,260
7,988
457
392
899
4,829
42,901
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 93
FOR THE EIGHTH CONSECUTIVE
YEAR, WE OBTAINED THE
CLASSIFICATION IN THE GOLD
CATEGORY OF THE BRAZILIAN
GHG PROTOCOL PROGRAM.
90%
95%
97%
100%
81%
66%
65%
81%
90%
95%
97%
100%
s
n
o
i
t
c
a
e
h
t
f
o
t
n
e
m
l
l
i
f
l
u
F
100%
80%
60%
40%
20%
0%
% Executed
Braskem
In line with this strategy, since 2008 we have been part
of the Global Compact’s Brazilian Network Committee
and, since 2013, of the Global Compact’s LEAD group,
and are part of the initiatives of UNIDO’s Green
Industry Platform and of the Global Compact’s Caring
for Climate. In addition, we assumed the coordination
of the Technical Group on Energy and Climate of the
Brazilian Network of the UN Global Compact in 2017,
and we have participated in a business platform created
by the Center for Sustainability Studies of the Getúlio
Vargas Foundation (FGV): Companies for the Climate.
CLIMATE
CHANGE
103-2, 103-3, 201-2, CRITERIA 18 - COP
Actions for mitigation of and adaptation to climate
PLAN TO ADAPT TO CLIMATE CHANGE
change have always been part of our strategy, and are a
In 2018, the implementation of actions to mitigate climate
commitment in our goals for sustainable development.
risks occurred according to plan, highlighting the evaluation
To be among the world’s best chemical industries in
of the effectiveness of 100% of these actions in the
terms of greenhouse gas (GHG) emissions intensity,
calculation of residual risk, thus ensuring that potential
we have made a lot of efforts to develop effective
high-risk threats are eliminated. Our plan foresees
2018
2019
2020
2021
2022
2023
actions that bring real solutions, such as the use
the implementation of 100% of all actions by 2023.
of renewable raw materials, development of new
products, and practices such as carbon pricing.
WE WERE SELECTED FOR THE SEVENTH
CONSECUTIVE TIME TO INTEGRATE THE
PORTFOLIO OF THE CARBON EFFICIENT
INDEX (ICO2) OF B3 (BRAZIL).
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< >
94
Of the potential climate risk scenarios, we identified 61 potential high-risk
threats to the business, 39 in Brazil, 16 in Mexico, and six in the United States.
With our management efforts, in 2018 these numbers had already been
reduced to 51 potential high-risk scenarios. Our goal is to reach zero by 2023.
INDICATOR OF EFFECTIVENESS IN
MANAGEMENT OF POTENTIAL RISKS
High Risk – Braskem
Expected High Risk - Braskem
High Risk - Chemical and Vinyls
Expected High Risk - Chemical and Vinyls
61
51
15
13
s
t
a
e
r
h
T
k
s
i
R
-
h
g
H
i
32
8
20
5
12
3
7
1
2017
2018
2019
2020
2021
2022
2023
Our goal is to get
to zero by 2023!
CARBON PRICING
Part of our decision strategy for investments since
2016, we have an internal evaluation process (shadow
pricing method) that supports our decisions on
investment portfolio. A result of a commitment
proposed by the World Bank and adopted by us during
the UN Climate Summit. The process is being used in
100% of the operations in Brazil: Between 2016 and
2018, 51 projects used the methodology, and of these,
37 impacted the reduction of GHG emissions.
Scope 216 emissions are lower than last year, mainly due
to a reduction of approximately 20% in the average CO2
emission factor of the Interconnected System in Brazil
in 2018 compared to 2017, reaching 802,590 tCO2e.
We seek from ours electricity suppliers to obtain self-
declarations for the purchase of renewable energy, which
in 2018 were audited by an independent third party,
to reduce Scope 2 emissions from part of the energy
acquired that is obtained by bilateral agreements.
GHG EMISSIONS INVENTORY
305-1, 305-2, 305-3, 305-4, 305-5, 305-6
Our corporate emissions inventory considers all Scopes
1, 2, and 3 categories in 100% of the operations. In 2018
there was an increase (0.31%) in our Scope 115 emissions
due to an increase in primary energy consumption in
our operations, driven by internal technical factors,
such as unplanned operational shutdowns, and external
factors, such as the truck drivers’ strike in Brazil and
power outage events in the Northeast region of Brazil.
The total Scope 1 emissions was 10,214,251 tCO2e.
GHG EMISSIONS
(SCOPES 1 AND 2) - ktCO2e
959
874
1,088
1,077
1,038
1,073
802
2%
10,199
9,743
9,384
9,140
10,727
10,183
10,214
2008
2013
2014
2015
2016
2017
2018
Scope 1
Scope 2
15 Direct GHG emissions
16 Indirect emissions from the purchase of electricity
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< >
95
0.6%
0.6%
0.2%
0.1%
The increase in our Scope 1 emissions, coupled with
lower production compared to 2017 (approximately 10%
reduction) and driven by the above mentioned internal
and external events, led to an increase of our Scope 1 and
2 emission intensity indicator in 2018. This increase could
have been greater if we had not implemented initiatives
to mitigate emissions, among which are projects to switch
energy sources for less carbon-intensive alternatives
and recovery/energy efficiency in operations.
CARBON INTENSITY
(SCOPES 1 AND 2) - tCO2e/t
0.721
0.630
0.604
0.641
0.573
0.609
6%
GHG EMISSIONS (SCOPE 3)
9.8%
7.4%
26.9%
4.1%
3.9%
1.6%
CARBON INTENSITY (SCOPE 1) -
tCO2e/t
2008
2014
2015
2016
2017
2018
0.659
0.564
0.540
0.585
0.519
0.565
9%
Scope 317 emissions also increased, mainly due to an
increase in the scope of reporting products sold under
Category 11 - Use of Products Sold and Category 10 -
Processing of Products Sold. In 2018, our Scope 3 totaled
24,009,000 tCO2e, with Categories 1, Goods and Services
Purchased, 10 and 11 being the most representative:
2008
2014
2015
2016
2017
2018
17Other indirect GHG emissions
41.5%
0.0%
Category 1 = 9,968.8 mil tCO2e
Category 15 = 142.2 tCO2e
Category 10 = 6,459.7 mil tCO2e
Category 2 = 134.1 tCO2e
Category 11 = 2,364.0 mil tCO2e
Category 5 = 59.4 tCO2e
Category 12 = 1,773.5 mil tCO2e
Category 9 = 1,137.3 mil tCO2e
Category 4 = 992.9 mil tCO2e
Category 3 = 940.1 mil tCO2e
Category 7 = 29.3 tCO2e
Category 6 = 7.2 tCO2e
Category 8 = 0.7 tCO2e
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 96
CARBON CREDITS IN THE FLEET OF CORPORATE VEHICLES
Since 2011 we have carried out an inventory of Scope 3 GHG emissions
(indirect emissions), with a significant evolution of the chain’s engagement
and identification of initiatives to reduce these emissions. With support from
Ticket Log, in 2017 we joined an initiative to generate carbon credits through the
replacement of gasoline with ethanol in our fleet of corporate vehicles and became
eligible for the monitoring phase in 2018, upon fueling with ethanol at a percentage
higher than required (95.46%). In the second half of the same year, we requested
the issue of carbon credits, expected to be issued in the first half of 2019.
EVOLUTION OF ETHANOL SUPPLY
INDICATOR FOR THE FLEET
98%
99%
99% 99%
98.41%
96.12%
96.93%
97.00%
96%
95%
94.88%
93.90%
Sep 17
Oct 17
Nov 17
Dec 17
Ethanol
Goal
ENGAGEMENT OF THE SUPPLY CHAIN
In 2018, we proceeded with the process to engage
critical Suppliers regarding climate change,
achieving results that increase the chain’s
resilience to mitigate and adapt: presentation
of initiatives to reduce emissions, reporting of
targets to reduce emissions, and Suppliers that
are already cascading the engagement to their
own partners, all of this voluntarily. We have
encouraged Suppliers to join the Action Exchange
within the CDP Supply Chain, a free consultancy to
identify opportunities to reduce costs, emissions,
and energy consumption in their processes.
In 2018:
61% of engaged Suppliers reported
initiatives to reduce emissions
46% of engaged Suppliers reported targets
44% of Suppliers engaged their suppliers
140 Suppliers invited by us answered the
climate questionnaire in 2018 (66.5%
of the total Suppliers invited)
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 97
OTHER EMISSIONS
305-7
In addition to greenhouse gas emissions, we manage other air emissions,
such as ozone-depleting substances and pollutants from fuel combustion,
such as NOX and SOX, among others. We have also been replacing depleting
substances with other substances not on the Montreal Protocol list.
The higher consumption of coal in Southern Brazil explains the increase in
emissions of NOX, SOX, and particulate matter. In any case, these emissions
are within the legal standards applied to units that consume coal.
EVOLUTION OF EMISSIONS OF SOX, NOX, AND OTHER
SIGNIFICANT SUBSTANCES (TONS)
EMISSIONS 1
2014 (t)
2015 (t)
2016 (t)
2017 (t)
2018 (t)
NOX
SOX
Volatile organic
compounds
Particulate matter
Toxic air pollutants(3)
11,421
11,509
3,881
1,225
97
9,546
4,503
3,808
911
6522
9,651
3,137
6,139
860
531
10,509
3,779
6,811
911
677
10,122
4,870
8,890²
1,289
595
EVOLUTION OF EMISSION OF OZONE-DEPLETING
SUBSTANCES (ODS)
ODS
2014 (t)
2015 (t)
2016 (t)
2017 (t)
2018 (t)
6,190
Other(4)
14,495
1 The methodologies used are recommended by the local environmental agencies. Where no measurements are
taken, estimates (emission factors) based on recognized methods, such as AP-42 from the USEPA, are used.
2 Plants have been increasing their assessments. This explains the increase in these parameters.
3 Includes toxic air pollutants and PAHs.
4 Includes total hydrocarbons and carbon monoxide.
4,746
4,145
7,078
Tons of CFC-11
equivalent
48.6
55.3
3.0
1.7
2.9
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multiple choice questions to help us to continually improve this report.
18 Ozone depletion refers to a decline in the total volume of ozone in the Earth’s stratosphere (the ozone layer).
BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER< > 98
GRI CONTENT
INDEX
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 99
Global
Compact
Principles
10
10
GRI Standard Disclosure
Page and/or answer
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
GRI CONTENT INDEX 102-55
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
7
7
107
7
102-5 - Ownership and legal form
102-6 - Markets served
102-7 - Scale of the organization
102-8 - Information on employees
and other workers
102-9 - Supply chain
GRI 102:
General
Disclosures
Braskem was formed in August 2002 by the
merger 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).
Go to http://www.braskem-ri.com.br/
ownership-structure for more details.
7
7
52
30, 66
102-23 - Chair of the highest
governance body
6
GRI 102:
General
Disclosures
102-14 - Statement from senior decision-maker
102-15 - Key impacts, risks, and opportunities
102-16 - Values, principles, standards,
and norms of behavior
102-17 - Mechanisms for advice
and concerns about ethics
102-18 - Governance structure
4
22
19, 22
19, 22, 29
19
The Chairman of the Board of Directors of
Braskem is not the executive director of Braskem.
Pursuant to Article 19, Sole Paragraph of the
company’s bylaws, “The position of Chief Executive
Officer and Chairman of the Board of Directors
may not be cumulatively held by the same person,
unless otherwise provided for in the Regulation.”
Regulation = B3 Level 1 Listing Regulation.
Members (including company Leaders), Financing
Institutions, Clients, Suppliers, Academia, Local
Audiences (NGO, Community, Trade Entities),
Opinion Formers (Government, Press), and
General Public. Go to www.braskem.com.br/
material-issues-assessement for more details.
102-40 - List of stakeholder groups
102-41 - Collective bargaining agréments
55
3
102-42 - Identifying and selecting stakeholders
The identification and selection of our
stakeholders for engagement was based on the
groups that play the role of influencers, enablers,
impactors, and beneficiaries in the relationship
with the company. Go to http://www.braskem.com.
br/material-issues-assessement for more details.
102-10 - Significant changes to the
organization and its supply chain
There was no significant change
in the reporting period.
102-11 - Precautionary Principle or approach
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
it cannot do so safely with a minimum impact
of the product on the environment. It should be
noted that Braskem does not produce or market
products derived from genetically modified
organisms (GMOs) or products containing
GMO ingredients, whether in Brazil or abroad.
102-12 - External initiatives
102-13 - Membership of associations
7, 15
7, 15
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 100
Global
Compact
Principles
7
6
6
GRI Standard Disclosure
Page and/or answer
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
102-43 - Approach to stakeholder engagement
102-44 - Key topics and concerns raised
102-45 - Entities included in the
consolidated financial statements
102-46 - Defining report content
and topic Boundaries
102-47 - List of material topics
102-48 - Restatements of information
GRI 102:
General
Disclosures
102-49 - Changes in reporting
www.braskem.com.br/
material-issues-assessement
www.braskem.com.br/
material-issues-assessement
30
www.braskem.com.br/
material-issues-assessement
www.braskem.com.br/
material-issues-assessement
There was no significant change
in the reporting period.
There was no significant change
in the reporting period.
102-50 - Reporting period
January 1 to December 31, 2018.
102-51 - Date of most recent report
102-52 - Reporting cycle
102-53 - Contact point for questions
regarding the report
2018
Annual
107
102-54 - Claims of reporting in accordance
with the GRI Standards
This report was prepared in accordance
with the GRI Standards: Core option
102-55 - GRI content index
99
102-56 - External assurance
MATERIAL TOPIC
ECONOMIC PERFORMANCE
Macro objectives: Economic-financial results
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
The external assurance, carried out 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.
www.braskem.com.br/
material-issues-assessement
31
31
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 objetive: Local Development
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
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 communityl
INDIRECT ECONOMIC IMPACTS
Macro objetive: Local Development
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
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
PROCUREMENT PRACTICES
Macro objetive: Local Development
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
36
93
75
www.braskem.com.br/
material-issues-assessement
49
52
53
52
www.braskem.com.br/
material-issues-assessement
56
56
56
www.braskem.com.br/
material-issues-assessement
66
66
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER GRI Standard Disclosure
Page and/or answer
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
66
Macro objective: Energy efficiency
ENERGY
GRI 204:
Procurement
Practices
204-1 - Proportion of spending
on local suppliers
ANTI-CORRUPTION
Macro objetive: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
www.braskem.com.br/
material-issues-assessement
22, 28
28
22
103-3 - Evaluation of the management approach
205-2 - Communication and training about
anti-corruption policies and procedures
GRI 205:
Anti-corruption
205-3 - Confirmed incidents of
corruption and actions taken
There were no confirmed cases
of corruption in the period.
ANTI-COMPETITIVE BEHAVIOR
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
22, 28
28
GRI 206: Anti-
competitive
Behavior
MATERIALS
206-1 - Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
Nothing to report. Braskem does not
have any process of this nature.
Macro objective: Renewable Resources
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
GRI 301:
Materials
103-3 - Evaluation of the management approach
301-1 - Materials used by weight or volume
301-2 - Recycled input materials used
301-3 - Reclaimed products and
their packaging materials
28
91
91
7, 10
61, 91
61, 91
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 302:
Energy
302-1 - Energy consumption
within the organization
302-3 - Energy intensity
302-4 - Reduction of energy consumption
WATER
Macro objective: Water efficiency
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 303:
Water
303-1 - Interactions with water
as a shared resource
303-2 - Management of water
discharge-related impacts
303-3 - Water withdrawal
303-4 - Water discharge
303-5 - Water consumption
BIODIVERSITY
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
89
89
89
89
89
www.braskem.com.br/
material-issues-assessement
85
85
85
85
85
85
85
www.braskem.com.br/
material-issues-assessement
76, 82
82
10
10
7, 8
8
8
101
Global
Compact
Principles
7, 8
8
8, 9
7, 8
8
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER GRI Standard Disclosure
Page and/or answer
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
304-2 - Significant impacts of activities,
products, and services on biodiversity
In 2018, there were no significant
impacts on biodiversity (valid for Mexico,
where the topic is material).
GRI 304:
Biodiversity
304-4 - IUCN Red List species and
national conservation list species with
habitats in areas affected by operations
Two species (Ceratozamia miqueliana and
Zamia loddigesii). It should be noted that these
species were rescued by the company during
the construction of the complex in 2012 to
2016, and are now in a conservation area.
EMISSIONS
Macro objective: Energy Efficiency
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
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 objective: Security
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
93
93
94
94
94
94
94
94
97
www.braskem.com.br/
material-issues-assessement
85, 91
85, 91
8
8
7, 8
7, 8
7, 8
8
8, 9
7, 8
7, 8
GRI 306:
Effluents
and Waste
306-1 - Water discharge by
quality and destination
306-2 - Waste by type and disposal method
85
91
ENVIRONMENTAL COMPLIANCE
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
82
82
GRI 307:
Environmental
Compliance
307-1 Non-compliance with
environmental laws and regulations
In June 2018, a civil lawsuit was filed by the State
Public Prosecutor’s Office in São Paulo against
Braskem and 11 other companies located in the
Capuava Petrochemical Complex. The lawsuit
asks for compensation of R$ 100 million for
moral and environmental damage due to high
rates of people in the region suffering from
Hashimoto’s thyroiditis. At the close of this
report, there was no evidence that industrial
activities were responsible for triggering
Hashimoto’s thyroiditis in that location (this
information also applies to indicator 413-2).
SUPPLIER ENVIRONMENTAL ASSESSMENT
Macro objective: Strengthening practices
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
GRI 103:
Management
Approach
103-3 - Evaluation of the management approach
GRI 308:
Supplier
Environmental
Assessment
308-1 - New suppliers that were screened
using environmental criteria
www.braskem.com.br/
material-issues-assessement
66
66
66
102
Global
Compact
Principles
8
8
8
8
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER GRI Standard Disclosure
Page and/or answer
EMPLOYMENT
Macro objective: Economic-financial results
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
401-1 - New employee hires
and employee turnover
www.braskem.com.br/
material-issues-assessement
49
49
53
401-2 - Benefits provided to full-time
employees that are not provided to
temporary or part-time employees
GRI 401:
Employment
401-3 - Parental leave
OCCUPATIONAL HEALTH AND SAFETY
Macro objective: Secutity
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
403-1 - Occupational health and
safety management system
GRI 403:
Occupational
Health and
Safety
403-2 - Hazard identification, risk
assessment, and incident investigation
403-3 - Occupational health services
403-4 - Worker participation, consultation,
and communication on occupational
health and safety
Life insurance, health insurance, disability
allowance, maternity/paternity leave, private
pension fund, and stock purchase plan, among
others. There is no distinction of benefits
offered to full-time, temporary and part-time
employees. Benefits are offered upon hiring.
In Brazil, we monitor the number of maternity
leaves and the percentage of terminations up to
one year after the return from the leave. Number
referring to Members in Brazil who returned from
maternity leave from January to December 2018:
92 returns and 7 post-return terminations.
www.braskem.com.br/
material-issues-assessement
76, 78 to 80
78, 80
76
78, 79
79
79
103
Global
Compact
Principles
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
403-5 - Worker training on
occupational health and safety
79
403-6 - Promotion of worker health
GRI 403:
Occupational
Health and
Safety
6
6
403-7 - Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
403-8 - Workers covered by an occupational
health and safety management system
403-9 - Work-related injuries
403-10 - Work-related ill health
TRAINING AND EDUCATION
Macro objective: Strengthening practices
To support the promotion of non-occupational
health to employees, Braskem offers health
insurance, which covers general and dental
services. For contractors, Braskem requires,
through a service agreement, the provision
of health insurance. In addition to health
insurance, Braskem promotes other health
support actions, such as: vaccination
campaigns, quality of life tests, occupational
medical follow-up, and nutritional monitoring,
gym membership, among others.
To support the promotion of non-occupational
health to employees, Braskem offers
health insurance, which covers general and
dental services. For contractors, Braskem
requires, through a service contract,
the provision of health insurance.
Braskem has approximately 21,000 workers,
40% of whom are Members and 60% are
contractors covered by the occupational
health and safety management system.
78
78
103-1 - Explanation of the material
topic and its Boundary
www.braskem.com.br/
material-issues-assessement
GRI 103:
Management
Approach
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
49
49
49, 54
55
6
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER GRI Standard Disclosure
Page and/or answer
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
www.braskem.com.br/
material-issues-assessement
103-1 - Explanation of the material
topic and its Boundary
www.braskem.com.br/
material-issues-assessement
LOCAL COMMUNITIES
Macro objectives: Local Development
DIVERSITY AND EQUAL OPPORTUNITY
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 405:
Diversity
and Equal
Opportunity
405-1 - Diversity of governance
bodies and employees
NON-DISCRIMINATION
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
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
RIGHTS OF INDIGENOUS PEOPLES
Macro objective: Local Development
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
51
51
49, 52
www.braskem.com.br/
material-issues-assessement
21 to 22
21 to 22
21 to 22
www.braskem.com.br/
material-issues-assessement
55 to 59, 71 to 74, 76 to 77
103-3 - Evaluation of the management approach
55 to 59, 71 to 74, 76 to 77
GRI 411: Rights
of Indigenous
Peoples
411-1 - Incidents of violations involving
rights of indigenous peoples
64
No incidents were identified in the reporting
period. Considering that traditional
populations (fishermen and quilombolas) live
in communities close to Braskem’s operations
in the Port of Aratu, some initiatives have
been taken to prevent damage, promote
sustainability, and establish a relationship of
dialogue and trust with these communities.
6
6
GRI 103:
Management
Approach
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
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
SUPPLIER SOCIAL ASSESSMENT
Macro objective: Strengthening practices
56
56
56
65, 80
103-1 - Explanation of the material
topic and its Boundary
www.braskem.com.br/
material-issues-assessement
GRI 103:
Management
Approach
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
414-1 - New suppliers that were screened
using social criteria
GRI 414:
Supplier Social
Assessment
PUBLIC POLICY
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 415: Public
Policy
415-1 - Political contributions
66
66
66
www.braskem.com.br/
material-issues-assessement
75
75
Zero
104
Global
Compact
Principles
1
1
2
10
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER GRI Standard Disclosure
Page and/or answer
Global
Compact
Principles
GRI Standard Disclosure
Page and/or answer
105
Global
Compact
Principles
CUSTOMER HEALTH AND SAFETY
Macro objective: Security
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
416-1 - Assessment of the health and safety
impacts of product and service categories
GRI 416:
Customer
Health and
Safety
www.braskem.com.br/
material-issues-assessement
81
81
81
100% (SDS provides impacts and controls
of HES, they are reviewed periodically,
SDS platform (3 years) - RIS (according to
with each legislation reported).
416-2 - Incidents of non-compliance
concerning the health and safety
impacts of products and services
81
MARKETING AND LABELING
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
www.braskem.com.br/
material-issues-assessement
81
81
81
417-1 - Requirements for product and
service information and labeling
The labeling information corresponds to SDS
information (GHS format) and is handled by each
site. The internal procedure used is ANX 6020-
00840 - Information on chemical hazards.
GRI 417:
Marketing and
Labeling 2016
417-2 - Incidents of non-compliance concerning
product and service information and labeling
81
417-3 - Incidents of non-compliance
concerning marketing communications
Zero. The company declares non-existence of
non-compliance with regulations and voluntary
codes relating to marketing communications,
including advertising, promotion and
sponsorship, broken down by type of results.
SOCIOECONOMIC COMPLIANCE
Macro objective: Strengthening practices
GRI 103:
Management
Approach
103-1 - Explanation of the material
topic and its Boundary
103-2 - The management approach
and its components
103-3 - Evaluation of the management approach
GRI 419:
Socioeconomic
Compliance
419-1 - Non-compliance with laws and
regulations in the social and economic area
www.braskem.com.br/
material-issues-assessement
28
28
Braskem has lawsuits in the aforementioned
period, whether environmental or regulatory;
however, the company does not have definitive
ruling on fines or non-monetary sanctions
during the period in question. The same criteria
used in the “Reference Form” established by the
“Brazilian Securities Commission” (“CVM”) was
adopted for this report, in accordance with IN
CVM 480/209 - R$ 50 million. For environmental
matters, it considered the amount of R$ 10 million.
SDG
Page number
COP Criteria*
Page
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
12
71, 78, 80
62, 63, 64
49, 64, 71
85
89
12, 47, 49, 61, 67, 72, 78, 80, 85, 93
31, 40, 64, 93
12, 49, 60, 61, 63, 72
15
12, 17, 61, 62, 63, 64, 66, 73, 91
93
16, 62, 63, 64
12, 20, 24, 71
12, 47, 60, 61, 62, 63, 64, 71, 73
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
11, 14
66, 68, 69
11, 12, 22, 66
71
29, 65, 71, 72
11, 22, 55, 66, 67
65
55, 69, 77
11, 12, 14, 66, 78
11, 45, 65, 78
11, 14, 77
22
22, 26, 29
22
6, 11, 14
57
11, 14
14, 85, 87, 88, 93
6, 11, 14
6, 11, 14
* COP (Communication on Progress): commitments made by UN Global Compact participants with the implementation of the 10 Global Com-
pact Principles in their business strategies and daily operations.
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER
106
LIMITED ASSURANCE REPORT ISSUED
BY INDEPENDENT AUDITORS
To the Board of Directors, Shareholders and Stakeholders
Braskem S.A.
São Paulo - SP
Introduction
environmental information disclosed in sustainability
reports - KPMG Sustainability Assurance Manual - KSAM,
applicable to historical non-financial information.
These standards require compliance with ethical
requirements, including independence ones, and
the engagement is also conducted to provide
limited assurance that the information disclosed
We have been engaged by Braskem S.A. (“Braskem” or
in the Braskem’s Annual Report 2018, taken as a
“Company”) to apply limited assurance procedures on
whole, is free from material misstatement.
the sustainability information disclosed in 2018’s Annual
Report, related to the year ended December 31st, 2018.
Responsibilities of Braskem’s Management
The Management of Braskem is responsible for adequately
preparing and presenting the sustainability information in
the Annual Report 2018 in accordance with the Standards
for Sustainability Report of the Global Reporting Initiative
– GRI (GRI-Standards), as well as the internal controls
determined necessary to ensure this information is free
A limited assurance engagement conducted in accordance
with the Standards for Sustainability Report of the
Global Reporting Initiative - GRI (GRI-Standards) and
the KPMG Sustainability Assurance Manual - KSAM
consists mainly of questions and interviews with the
Management team Braskem and other professionals
of the Company involved in the preparation of the
information disclosed in the Annual Report 2018 and
use of analytical procedures to obtain evidence that
enables us to reach a limited assurance conclusion
from material misstatement, resulting from fraud or error.
about the sustainability information taken as a whole. A
Independent auditors’ responsibility
limited assurance engagement also requires additional
procedures when the independent auditor acknowledges
issues which may lead them to believe that the
Our responsibility is to express a conclusion about the
information disclosed in the Annual Report 2018 taken
information in the Annual Report 2018 based on a limited
as a whole could present material misstatement.
assurance engagement conducted in accordance with the
Standards for Sustainability Report of the Global Reporting
Initiative - GRI (GRI-Standards) and the methodology
developed globally by KPMG for assurance of social and
The selected procedures were based on our understanding
of the issues related to the compilation, materiality and
presentation of the information disclosed in the Annual
KPMG Financial Risk & Actuarial Services Ltda.
Rua Arquiteto Olavo Redig de Campos, 105, 6º andar - Torre A
04711-904 - São Paulo/SP - Brasil
P.O. BOX 79518 - Zip Code 04707-970 - São Paulo/SP - Brasil
Phone +55 (11) 3940-1500, Fax +55 (11) 3940-1501
www.kpmg.com.br
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 107
Report 2018, on other engagement circumstances
• application of analytical procedures regarding data and
assurance engagement, we may have identified
and also on our considerations regarding areas and
interviews for qualitative information and their correlation
other issues and possible misstatements within the
processes associated with material sustainability
with indicators disclosed in the Annual Report 2018;
information presented in the Annual Report 2018.
information disclosed where relevant misstatement
could exist. The procedures consisted of:
• analysis of evidence supporting the disclosed information;
Nonfinancial data is subject to more inherent limitations
(a) engagement planning: considering the material
• visits to three Braskem’s operations and to the corporate
the methods used to determine, calculate or estimate
aspects for Braskem’s activities, the relevance
office application of these procedures, and items (b) and (c);
these data. Qualitative interpretation of the data’s
of the information disclosed, the amount of
materiality, relevance and accuracy are subject to
quantitative and qualitative information and the
(e) analysis of whether the performance indicators
individual assumptions and judgments. Additionally,
operational systems and internal controls that
omission and justification are reasonable to be
we have not examined data related to prior periods,
served as a basis for preparation of the information
accepted associated to aspects and topics defined as
to evaluate the adequacy of policies, practices and
in the Braskem’s Annual Report 2018. This analysis
material in the materiality analisys of the Company;
sustainability performance, nor future projections.
than financial data, due to the nature and diversity of
defined the indicators to be checked in details;
(f) comparison of financial indicators with the financial
Conclusion
(b) understanding and analysis of disclosed information
statements and/or accounting records.
related to material aspects management;
Based on the procedures carried out, described
We believe that the information, evidence and results
earlier in this report, we have not identified any
(c) analysis of preparation processes of the Annual
we have obtained are sufficient and appropriate to
relevant information that leads us to believe that
Report 2018 and its structure and content, based
provide a basis for our limited assurance conclusion.
the information in the 2018 Annual Report of
on the Principles of Content and Quality of the
Standards for Sustainability Report of the Global
Reporting Initiative - GRI (GRI-Standards);
Scope and limitations
Braskem is not fairly stated in all material aspects
in accordance with the Standards for Sustainability
Report of the Global Reporting Initiative - GRI (GRI-
The procedures applied to a limited assurance engagement
Standards), as well as its source records and files.
(d) evaluation of non financial indicators selected:
are substantially less extensive than those applied
• understanding of the calculation methodology
we cannot provide reasonable assurance that we are
and procedures for the compilation of
aware of all the issues that would have been identified
KPMG Financial Risk & Actuarial Services Ltda.
indicators through interviews with management
in a reasonable assurance engagement, which aims
responsible for data preparation;
to issue an opinion. If we had conducted a reasonable
Ricardo Algis Zibas
to a reasonable assurance engagement. Therefore,
São Paulo, May 10th, 2019
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER 108
CORPORATE 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
Supervision of Corporate Communication
Rodrigo Uchoa
Vitor Garcia
Supervision of Sustainable Development
Mario Pino
André Villaça
Beatriz Muniz
Analysis of Indicators, Project Development
and Content Production
Keyassociados
Graphic Design and Layout
Magenta•Lab
Assurance
KPMG
Photographs
Braskem collection
Translation
Gotcha! Idiomas
For more information about this report, please
contact imprensa@braskem.com
102-53
Headquarters - Office
Rua Lemos Monteiro, 120
Butantã - São Paulo (SP)
ZIP Code: 05501-050
102-3
< >BRASKEMBUSINESS PERFORMANCEHEALTH, SAFETY, AND ENVIRONMENTGRI CONTENT INDEXINNOVATIONGOVERNANCE AND COMPLIANCESTAKEHOLDERSCORPORATE CREDITSMESSAGE FROM THE BUSINESS LEADER