INTEGRATED REPORT
02
Contents
A Message from the Business Leader
Capital Performance
Braskem
Geographical Footprint
Organizational Culture
Corporate Governance
Business Model
Highlights 2020
Strategic Planning
Risk Management
Challenges of the Covid-19 Pandemic
Focus on Sustainable Development
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Social and Relationship Capital
Natural Capital
About the Report
Materiality
ESG Dashboard
Credits
Striving for transparency in our communication to
investors, customers, suppliers, associates and the
communities where we operate, this enhanced report
combines our Annual Report, featuring the company's
sustainability indicators, and the Integrated Report
providing relevant information to investors and other
parties in the financial market. This new model was
designed to communicate our intentions and actions
more clearly and concisely, showing how we generate
value for the organization, our stakeholders and society.
This report and its annexes present our main results in
2020 and the socio-environmental indicators associated
with our production processes.
Enjoy the read!
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS A MESSAGE FROM THE BUSINESS LEADER
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A Message from the Business Leader
GRI 102-14
Roberto Simões
Braskem's Business Leader
The year 2020 was marked by uncertainties and atyp-
ical volatilities. The global spread of the Covid-19 and
the consequent lower global demand for fuels impacted
oil prices on the international market. While the huge
drop in demand forced us to reduce the capacity of our
factories during the first half of the year, in later months
the global petrochemical industry bounced back stron-
ger than expected, with strong demand for thermoplas-
tic resins. The combination of higher consumption of
plastic materials, supply constraints and falling naphtha
prices led to healthier spreads.
In this context, we ended the year with strong gener-
ation of operating and financial results. Regarding our
focus on people, we worked to combat the pandemic
while seeking to support our entire value chain, and we
have made significant progress related to the geological
phenomenon in Alagoas. We also renewed our long-term
goals, emphasizing sustainability as a strategic pillar
for our business and maintained our support to the UN
Global Compact and its principles.
Throughout 2020, we continued to focus on our objec-
tives: improving people's lives by creating sustainable
chemical and plastic solutions, capturing opportunities
and creating value for all stakeholders in our chain, and
addressing concerns regarding the future of the planet
and society.
AGILITY AND COOPERATION IN FIGHTING
THE PANDEMIC
We have adopted a series of measures to safeguard
people's health, protect the efficiency of our industri-
al and commercial operations and preserve our cash.
With the safety of employees and third parties in mind,
we took measures to protect those who were at the
greatest risk, operating with small teams and adopting
strict security protocols to prevent Covid-19 transmis-
sion. We soon had 100% of our corporate teams work-
ing from home, since workplace flexibility practices
have been in place for some years as part of our digital
transformation.
We worked even closer with our value chain, supporting
them so they can not only survive but come out of this
challenging period safe and strong. Despite the tempo-
rary reduction in the use of our capacities, we met the
needs of our customers and the markets in which we
operate thanks to the synergies between our global units.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS A MESSAGE FROM THE BUSINESS LEADER
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We also provided a R$ 1 billion line of credit with special
conditions for our customers, analyzing their needs case
by case. We donated approximately R$ 11 million to sur-
rounding communities and society at large in products or
financial support in global actions against Covid-19.
Additionally, we adopted measures to preserve our cash,
for example, by reducing investments and fixed expens-
es and optimizing working capital with relevant suppliers.
As shelter-in-place measures were gradually lifted after
the first pandemic wave, the global economy responded
with strong recovery and increased demand for thermo-
plastic resins, mostly driven by the sectors of greatest
consumption during the pandemic - packaging and med-
ical applications. In addition, we postponed the start of
operations of new capacities in the global petrochemical
market, given the uncertainties associated with the evo-
lution of the pandemic. These combined factors allowed
us to resume normal manufacturing and commercial
operations by the end of June, closing 2020 with a quar-
terly record of resin sales in the Brazilian market and sales
growth in the United States, Europe and Mexico, leading
to an operating recurring result of approximately R$ 11.0
billion and R$ 1.3 billion in free cash generation.
FOCUS ON BUSINESS STRATEGY
productivity and competitiveness, we reduced the rate
of accidents with and without leave by 27% compared
to 2019, reaching the best result in the last four years
and underscoring our non-negotiable commitment to
ensuring safety for people. This improved safety record
reflects the stronger commitment from all levels of
leadership and the success of our Human Reliability Pro-
gram, aimed at minimizing failures and losses in opera-
tional processes through extensive awareness-raising
and training for internal teams and third parties working
in the plants.
In addition, we renewed contracts for the supply of
naphtha, ethane and propane to petrochemical plants in
Brazil and implemented Transform for Value, a program
designed to coordinate, accelerate and focus on the
company's main process and productivity improvement
initiatives, capturing an estimated cost savings of
US$ 55 million per year in 2020.
Regarding feedstock and supplier diversification we
mitigated the effects of the shortage of raw materials
for our operations in Mexico through the Fast-Track
project for importing ethane from the United States,
accounting for 9% of the plant utilization rate and sup-
plying approximately 35,000 tons of imported ethane
in the last quarter of 2020.
utilization rate by the end of the year. This new capac-
ity reinforces our leadership in the USA polypropylene
market and makes us the largest producer in the Ameri-
cas. The new plant enhances our balanced profile in raw
materials, featuring propylene as the most relevant raw
material for our global operations.
Regarding the geological event in Alagoas, we reaf-
firmed our commitment to the safety of people and
communities in the areas in which we operate and
we moved forward with the Financial Compensation
and Relocation Support Program. By the end of 2020,
we had relocated about 9,200 families in the neigh-
borhoods affected by the geological phenomenon
and presented approximately 3,500 compensation
proposals, 99.7% of which were accepted. Reaching
agreements with the authorities, we extinguished two
public civil actions against Braskem and provisioned
approximately R$ 9.2 billion to date for the relocation
and compensation of families, as well as infrastructure
works and the repair of environmental, urban and social
impacts in the affected areas, among other actions.
On the operational front, we resumed the production
of our chlorine-soda plant in Maceió, and will return
to integrated PVC and caustic soda production in the
state of Alagoas in 2021, now using imported salt as a
raw material.
In corporate strategy, we made important advances
in initiatives related to our defined strategic pillars. In
We also advanced in geographic diversification, with
the start of operations of the new polypropylene plant
(Delta Project) in La Porte, Texas, ramping up to 90%
Aligned with ethical and governance principles, we ob-
tained the independent monitorship certificate issued
by the Brazilian Federal Public Ministry, the United
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS A MESSAGE FROM THE BUSINESS LEADER
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States Department of Justice (DoJ) and the Securi-
ties and Exchange Commission (SEC), attesting that
we have complied with the obligations of the global
agreement signed with the authorities and confirming
that we have implemented an effective and robust
Compliance Program. In fact, the program has been
recognized by Brazilian public institutions and will serve
as a model for other leniency agreements to be signed
in the country.
In relation to financial health and discipline in the allo-
cation of capital, we ended the year with positive cash
generation thanks to our strong operating result and
robust cash position (US$ 2.9 billion), with sufficient li-
quidity to cover debt maturity over the next 84 months.
In parallel, our deleveraging plan reduced corporate
leverage from 4.71x in 2019 to 2.94x in 2020.
A MORE SUSTAINABLE FUTURE, TODAY
In 2020, we approved our Global Sustainable Develop-
ment Strategy, which publicly consolidates our medium
-and long-term objectives regarding the material topics
for our business and aligned with the UN Sustainable
Development Goals and the Paris Agreement. As part of
this strategy, we expanded our efforts to intensify our
contribution to a Circular Carbon Neutral Economy. Our
goals are to achieve carbon neutrality by 2050, reduce
scope 1 and 2 GHG emissions by 15% by 2030, and in-
crease sales of our products with recycled content to 1
million tons/year by 2030.
OUTLOOK FOR 2021
We will follow a clear action plan with clearly defined
and monitored goals, based on a broad portfolio of in-
vestment and research projects related to sustainabil-
ity. We already made significant progress during 2020,
mainly in combating climate change and eliminating
plastic waste.
We celebrated the 10th anniversary of our Green PE,
internationally recognized for combining a renewable
raw material with CO2 capture capacity, reaching a
historical sales record of 170,000 tons. Reinforcing our
commitment to combining sustainability with business,
we announced the expansion of our production of green
ethylene, the raw material made from sugarcane etha-
nol used to produce Green PE. We also signed contracts
for the purchase of competitive renewable energy,
reaching an estimated 1.5 million avoided CO2 emissions,
and we announced partnerships to enable studies on
carbon capture technologies.
On the plastic waste frot, we announced partnerships
that will make it possible to sort and mechanically re-
cycle such waste, and moved forward in a partnership
for enhanced chemical recycling technology. In addi-
tion, we expanded global sales of resins with recycled
content, growing 284% compared to 2019 to a total of
7.3 ktons sold.
Progress in treatments and vaccines against Covid-19
to control the number of cases and new variants will be
a key factor for the effective global economic recov-
ery. The likely petrochemical scenario includes health-
ier resin spreads in 2021, with sustained strong global
demand. Chemical and plastic solutions will remain
essential in 2021 and beyond, and we at Braskem will
move on to implement the initiatives of our strategic
pillars. Our key areas of focus will be to ensure safe
operations, advance in actions related to the geolog-
ical phenomenon in Alagoas, find a definitive solution
for the supply of ethane to our operations in Mexico,
maintain our financial health, accelerate innovation
and digital transformation and implement our com-
mitments to sustainable development. We are firmly
committed to delivering value to all our stakeholders,
today and in the future.
Roberto Simões
Braskem’s Business Leader
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
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Braskem
Geographical Footprint
Organizational Culture
Corporate Governance
Business Model
Highlights 2020
Braskem SA is a global company that aims to improve
people’s lives by creating sustainable solutions through
chemicals and plastic. Our company was founded in
2002, and today we are the sixth largest petrochemi-
cal company worldwide, the leader in the Americas in
the production of thermoplastic resins and the global
leader in the production of biopolymers. GRI 102-1
Cracking large-molecule petroleum derivatives, natu-
ral gas and ethanol, we produce basic chemical in-
puts, such as ethylene, propene, butadiene, benzene,
toluene, paraxylene, cumene, gasoline and caustic
soda; and plastics, such as polyethylene (PE), polypro-
pylene (PP) and polyvinyl chloride (PVC). Our products
are sold to companies in different industries, and then
transformed into a variety of solutions for health,
mobility, food, infrastructure and consumer goods.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS BRASKEM
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Our industry GRI 102-2, 103-2, 103-3 | 301
Chemicals and plastic are part of a great number
of simple and complex daily activities, and indis-
pensable for many other industries. That is why
the petrochemical sector is considered essential
for the global economy, and even more so during
the pandemic as chemicals and plastic are indis-
pensable elements in the production of hospital
items, hygiene products and packing.
Our sector is highly sensitive to global changes in
supply and demand, and therefore cyclical - there
are peaks when demand is greater than supply,
leading to higher profit margins. Likewise, slack
periods bring lower margins.
Today our industry is experiencing lower polyethyle-
ne prices due to the entry of new petrochemical
plants in the US and Asia, with new capacities affec-
ting the global supply and demand relationship. Our
diversification strategy is designed to mitigate the
effects of this cycle. Find out more about our work
in this sector and the competitive scenario in this
market in our Reference Form Annual Reports.
PRODUCTS FLOWCHART
Naphtha
Ethanol
Ethane
Propane
Propylene
Ethene
S
L
A
I
R
E
T
A
M
W
A
R
I
S
N
F
E
L
O
Y
L
O
P
S
L
Y
N
V
I
I
S
L
A
C
M
E
H
C
S
T
C
U
D
O
R
P
PE
Green PE
PP
UTEC
PCR
Chlorine-soda
PVC
EDC
Ethene
Propylene
Butadiene
Paraxylene
Benzene
Toluene
Solvents
Gasoline
Other chemicals*
S
N
O
I
T
A
C
I
L
P
P
A
Adhesives
Crop defensives
Aluminum
Rubber
Footwear
Automotive fuels
Construction
Home appliances
Pharmaceutical and hospital items
Lubricants
Furniture and floors
Packaging and bags
Steel mills
Covers
Paint
Pipes and fittings
Household items
*High Purity Propane, Orthoxylene, Isoprene, Butene1, Hydrogen, ETBE / MTBE, Aromatics, among others.
Housing and
infrastructure
Performance improvement
and cost reduction
Availability of water
and sanitation
Higher efficiency
at lower cost
I
S
T
N
E
M
E
R
U
Q
E
R
Y
E
K
Health
Agriculture
and food
Mobility
Greater durability and impact
resistance, lower cost
and rejection in the human
body, less contamination
and greater hygiene
Increased productivity,
with lower water costs
and reduced food waste
S
T
I
F
E
N
E
B
Greater passenger safety,
corrosion protection,
fuel economy and lower rate
of pollutant emissions into
the atmosphere
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
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Geographical Footprint
GRI 102-4, 102-6, 102-7
We have a global presence, with
41 industrial units spread over
Brazil, Mexico, the United States
and Europe, and 14 business
offices worldwide, including our
Head Office in São Paulo.
We achieve results through a
committed team of 8,000 team
members in 11 countries. Our
annual capacity is 10.7 million tons
of chemicals and 9.3 million tons
of thermoplastic resins. This wide
and diversified product portfolio is
transformed by our clients in more
than 87 countries.
United States
2 offices
• Philadelphia
• Houston
6 industrial plants
Latin America
5 offices
• Lima (Peru)
• Santiago (Chile)
• Bogota (Colombia)
• Cidade do Mexico (Mexico)
• Buenos Aires (Argentina)
Mexico
4 industrial
plants
Europe
1 office
• Rotterdam
(The Netherlands)
2 industrial plants
(Germany)
Brazil
4 offices
• Salvador
• São Paulo
• Rio de Janeiro
• Porto Alegre
29 industrial plants
Asia
2 offices
• Singapore
• India
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS Organizational Culture GRI 102-16
We are a human-oriented company, and we aim to be rec-
ognized as one of the best companies to work for by 2025.
Our culture is based on diversity, inclusion, equity, respect,
trust and empathy. Since 2019, our values have been trans-
lated into the seven BeUx pillars that represent our value
proposition to associates:
BRASKEM
09
1. You play the leading role
Our relationships are based on trust, and this is the key
to transformation. We encourage our team members
to make a difference every day as they take actions and
make decisions.
2. Challenge and be challenged
We encourage our associates to question the way things
are done and to challenge themselves and others to do
better every day. We believe that we only grow and learn
by interacting with each other.
4. Build your own path
There is no single track for personal, professional and
company growth. Our associates are encouraged to
chart their own route and make challenging choices that
will push them out of their comfort zone.
5. Grow with us
There are many opportunities for growth. Our associa-
tes are motivated to try and go further and as part of an
ethical, transparent and prosperous company.
3. Co-create your ideas
We must work as a team to reach our desired goal of
innovation. If a team member has an idea, they should
share it and then make it happen.
6. Take pride in what you do
We are part of sustainable solutions that improve pe-
ople's quality of life and help develop the communities
where we operate.
7. Be free to be you
Our key values include unconditional respect for indivi-
duals and diversity. We value each associate and encou-
rage them to be who they are, providing equal opportu-
nities for all.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
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Corporate Governance
GRI 102-18
Since our company was founded in 2002, we have been
committed to aligning the interests and expectations of
all stakeholders within our business through the ethical,
responsible and transparent behavior of all Braskem
associates and governance bodies aiming to ensure we
generate value in the short, medium and long term.
To this end, we follow the Brazilian Corporate Gover-
nance Code (CBGC), seeking to acomplish with best
practices in the field: we are listed in the Level 1 cor-
porate segment at B3, also meeting some practices of
Level 2 and Novo Mercado segments. as 100% tag along
for all shareholders in the event of a transfer of control.
Our bylaws also require that at least 20% of the mem-
bers of the Board of Directors be independent directors.
See the stock exchanges where Braskem is listed and
learn more about our Corporate Governance practices.
MAIN shareholders
Our main shareholders are Novonor
(formerly Odebrecht), which is the
majority shareholder, with 50.1% of the
voting capital shares, and Petrobrás,
which holds 47% of the voting capital
shares. The remaining 2.9% are distribu-
ted on the stock market or in treasury.
The company has a free float of 25.5%
of total capital, which provides liquidi-
ty for shareholders who wish to trade
their shares in B3. Learn more about
Braskem's corporate structure and
shareholding structure on our Investors
website. Access here.
Governance structure
GRI 102-18
The highest governance body is the Board of Directors,
which ended 2020 with its largest number (11 mem-
bers, including a president and a vice-president), four
of whom are independent members. Our Governance
structure is also composed of a Statutory Executive
Board a Fiscal Council, besides Board of Directors sup-
portive committes, including the Compliance Commit-
tee, which is forseen in the Company's Bylaws and is
composed by 3 independent members. Access here to
learn more about the structure and attributions of each
body, its regulations, training, members and their curric-
ulum vitae and get to know more about our governance
structure. The set of policies approved by our Board is
also available online. GRI 102-19, 102-20, 102-22, 102-23, 102-
24, 102-25, 102-26, 102-27, 102-28
To learn more about our governance and compliance
management, visit:
Governance and Compliance Policies.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
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Ethics and Compliance
GRI 102-17, 103-2, 103-3 | 205, 206, 406, 415, 419
We uphold high standards in Internal Controls, Risk Manage-
ment, Internal Audit and Compliance and we have an Integ-
rity Program aimed at preventing, detecting and remedying
possible deviations. We continuously perform inter-area
risk assessments and carry out internal and external audits
under SOX and ABAC (Anti-Bribery and Anti-Corruption)
rules: 100% of our Braskem operations were subjected to
corruption-related risk assessments. GRI 205-1
Over the course of 2020, we adopted several socioeco-
nomic compliance initiatives, including:
• Conclusion of the external and independent moni-
torship, after recognition of the effectiveness of the
compliance program
• Publication of follow-up reports on Braskem's Integrity
Program, submitted to the Transparency and Cor-
ruption Prevention Secretariat (STPC) of the Federal
Comptroller General (CGU);
• Started ISO 37001 certification process - Anti-Bribery
Management System;
• Compliance training;
• Engagement in collective actions by institutions such
as the ETHOS Institute, and the UN Global Compact,
besides support to class associations.
We have a robust and modern compliance system to
support our associates. This system is part of our Global
Compliance System Policy which sets out guidelines,
duties and responsibilities for associates and opera-
tions worldwide, and defines the governance instances
responsible for their enforcement.
Thus, our compliance practices are based on a set of
measures to prevent, detect and remedy risks. Along
these lines, 100% of the members of the governance
bodies were notified and more than 93% received train-
ing on anti-corruption policies and procedures.
Our compliance practices are
based on a set of measures to
prevent, detect and remedy risks
Find out more about the members
who also received training in the
GRI Annex. GRI 205-2
Our Compliance System applies to all associates, activ-
ities and operations, and must be systematically mon-
itored and enforced by the Board of Directors. We put
in place a series of initiatives and tools to enhance our
ethical commitment. Some key resources:
• Code of Conduct
•
Governance and Compliance Policies
that stablished the Ethics Line Channel
• Global Anti-Corruption Policy GRI 205-1
To learn more,
click here.
PERSONAL Data
Protection Program
We consolidated the Personal Data Protec-
tion program establishing the Privacy Com-
mittee, strengthening our service channel,
ensuring data from participants, suppliers
and customers is processed on an adequate
legal basis and following the principles esta-
blished in Braskem's Privacy Policy; we also
reinforced our standards in critical areas
responsible for processing personal data.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS BRASKEM
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Free competition
We have internal and regulatory policies
that address this topic, such as the Free
Competition Policy, the Policy on Relationship
with Trade Associations and Class Entities
and the Investment and Divestment Policy. In
2020, we conducted competitive training in
Brazil, Europe and the United States, including
sessions for the Board of Directors. We
also prepared the Competition Booklet for
Members of the Commercial Areas in Brazil,
describing how we monitor and assess unfair
competition.
We have a sophisticated
Integrity Program that aims to
detect and address possible
deviations in conduct
CONCLUSION OF
independent monitorship GRI 205-1
In 2020, after a three-year independent monitorship
program, the Federal Public Prosecutor's Office (MPF),
the Department of Justice (DoJ) and capital market
regulatory agency SEC confirmed that our compliance
program fulfills all obligations defined in the agree-
ments with the corresponding authorities.
The authorities relied on the final report presented
by the independent monitors, which confirmed that
all recommendations related to the structure and
operation of the compliance program were effecti-
vely implemented and that the program fully meets
the standards established in the agreements. The
Prosecutor's Office (MPF) probed the program tho-
roughly and found that our compliance program was
efficient; it will in fact serve as a model for other
leniency agreements to be signed in the country. Ha-
ving proven our firm commitment to ethics we have
now successfully concluded the monitoring period
established in the agreements.
Over the course of the independent monitorship au-
dit, we have established even stricter anti-corruption
control policies, putting in place mechanisms to ensure
integrity and providing training on compliance issues.
For more information, visit this link.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
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Business Model
We are a global, human-centered, future-oriented
petrochemical company that uses valuable cap-
ital to produce an ample and diversified portfolio
of chemical and plastic products transformed by
our clients and applications that meet daily human
needs and improve people’s lives.
Firmly anchored in our strategy and culture, our
business model creates and distributes value among
all our stakeholders, in the short, medium and long
term, maintaining the financial health of the com-
pany and its investments.
Always aware of trends, risks, innovations and op-
portunities, we have incorporated the circular econ-
omy into our business strategy, aiming to contribute
to the proper disposal of plastic waste generated by
society. This new business model was consolidated
in 2020 with the launch of the I'm green ™ portfolio,
which now includes Braskem solutions for a circu-
lar carbon neutral economy, including recycled and
renewable origin products.
CAPITAL
These are the diverse, multicultural and skilled people who run our business in a more
inclusive and humane manner; who are committed to abiding by the applicable laws
and industry norms on health and safety; who embrace the spirit of integrity and
see ethical behavior as a competitive advantage; who do the right thing out of their
personal conviction.
HUMAN
The body of knowledge (patents, technologies, systems,
platforms, brands and copyrights) that allows us to
innovate and seek the technological development of more
competitive and sustainable products and processes.
INTELLECTUAL
We transform our main raw materials (naphtha,
ethane, propane, propylene, ethanol), as well as water
and electricity, supporting and cooperating with our
customer chain to offer solutions for an increasingly
sustainable society.
NATURAL
The bonds of trust with our stakeholders that allow
us to conduct our business, expanding our positive
socio-environmental impact and contributing to the
sustainable development of the communities where we
operate.
SOCIAL AND
RELATIONSHIP
The fixed assets (industrial units, pilot plants, innovation
and technology centers, technical laboratories, logistics
warehouses, train cars and cargo terminals) we deploy
in the development, production and distribution of our
products.
MANUFACTURED
Cash generated by our operations, bank loans and
financing, and funds raised in the capital market used
to finance our business.
FINANCIAL
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS BRASKEM
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STAKEHOLDERS
INPUTS
OUTPUTS
OUTCOMES
HUMAN
Team members
Interns
Third parties
Board members
INTELLECTUAL
Researchers
Tech partners
Consultants
Universities
Research centers
NATURAL
SOCIAL AND
RELATIONSHIP
Suppliers
Government
Non-governmental organizations
Surrounding communities
Opinion leaders
End users
Surrounding communities
Government
Non-governmental organizations
Peer companies
Class associations
Opinion leaders
• Diversity
• Multiculturalism
• Competences
• Ethics and Compliance
• Patents
• Technologies
• Systems
• Platforms
• Brands
• Copyrights
• Processes
• Naphtha
• Ethane
• Propane
• Propylene
• Etanol
• Plastic waste
• Water
• Electricity
• Bonds of trust with
our stakeholders
MANUFACTURED
Suppliers
Services providers
Clients
• Industrial Units
• Pilot plants
• Innovation and
technology centers
• Technical laboratories
• Logistic warehouses
• Train cars
• Cargo terminals
• PROFESSIONAL AND PERSONAL
ACHIEVEMENT
• TRAINING AND DEVELOPMENT
• DIGITAL TRANSFORMATION
• CLEAN TECHNOLOGIES
• ECO-EFFICIENT PRODUCTS
• OPERATIONAL EFFICIENCY
Portfolio of
innovative and
sustainable
chemical and
plastic products
transformed by
our customers into
applications that
meet daily human
needs and improve
people's lives
• WATER CONSUMPTION
• WATER REUSE
• ENERGY CONSUMPTION
• CLEAN ENERGY
• ENERGY EFFICIENCY
• CO₂ EMISSION
• EMISSION OF POLLUTANTS
• WASTE GENERATION
• EFFLUENT GENERATION
• CO₂ CAPTURE
• RECYCLING
• COMMUNITY
WELL-BEING
• TRANSPARENT
RELATIONS WITH
GOVERNMENT
• FREE COMPETITION
• CLASS AGREEMENTS
• DIALOGUE WITH
SOCIETY
• CUSTOMER LOYALTY
• REPUTATION
• RELATIONSHIPS WITH
SUPPLIERS
• EFFICIENCY OF INSTALLED CAPACITIES
• EXTENDED USEFUL LIFE
FINANCIAL
Shareholders
Financial institutions
Governments
Debt investors
Rating agencies
• Cash generated by our operations
• Bank loans and financing
• Funds raised in the capital market
• DISCIPLINE IN CAPITAL ALLOCATION
• DISTRIBUTION OF ADDED VALUE
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS BRASKEM
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Highlights 2020
FINANCIAL CAPITAL
INTELLECTUAL CAPITAL
SOCIAL CAPITAL
• R$ 58.5 billion Net Revenue.
• R$ 11 billion recurring Operating
Income.
• R$ 1.3 billion Net Cash Generation.
• R$ 600 million subordinated bonds
issued, with 50% equity treatment by
Standard & Poor's and Fitch Ratings.
• 2.94x corporate leverage ratio.
• Signatory of the CFO Principles
of the United Nations Global Compact.
• Enhanced technology for the production of renew-
able PET (green MEG), with the first production of
renewable MEG on a demonstration scale.
• Action in the pandemic: R$ 1 billion credit line
for plastics, solvents and specialty chains clien-
tes in Brazil.
• Maceio case: approximately R$ 409 million
paid in financial compensation and other
temporary aids to families.
• 20 startups accelerated through Braskem Labs.
• Launched in the Americas a new portfolio of prod-
ucts for 3D printing as polypropylene (PP) filaments,
powders and pellets.
• Participation in the 100 Open Corps innovation rank-
ing of companies that have the greatest engagement
with startups in Brazil.
• Pipeline of digital transformation projects set to
capture up to R$ 665 million per year.
• During the pandemic, we made more than
80 donations: more than 40 million masks
and face-shields produced with our resins, 1.2
million packages for gel alcohol, 800 thou-
sand aprons and lab coats for frontline health
professionals and support for the construc-
tion of a field hospital in Alagoas.
• Social action during pandemic: R$11 million
donated globally.
• Global Volunteer Program mobilized 1,070
volunteers, benefiting about 21,000 people
even during the pandemic.
• Our Reputation improved in comparison to
2019, especially among our team members,
where it showed a record increase.
• R$ 32.7 million invested in 137 social initiatives
(usual donations, pandemic-specific dona-
tions, Private Social Investments (ISPs) and
volunteering) and more than 236,000 people
impacted directly.
MANUFACTURED CAPITAL
HUMAN CAPITAL
NATURAL CAPITAL
• 284% increase in global sales of recy-
cled materials (resins and chemicals),
reaching 9,000 tons sold.
• 69% of team members participated in the well-being
thermometer survey, used to design action plans for
social distancing.
• Start of operations of the Delta Proj-
ect plant, in La Porte, Texas, making
Braskem the largest producer of poly-
propylene in the United States.
• Flexible workplace with home office, review of shifts,
purchase of personal protective equipment and ac-
tions to provide emotional and psychological support
during the pandemic.
• Partnership with Valoren: R$ 67 million
investment in the new recycling line and
expansion of the post-consumer resin
portfolio in Indaiatuba (SP).
• Selection of interns adapted to ensure a more inclu-
sive process, with 38% of the job openings filled by
black candidates.
• Reached 30% of women team members in leadership
• Commitment: 15% reduction in emissions by
2030 and becoming carbon neutral by 2050.
• Expansion of the I'm green ™ portfolio: reach
300,000 tons of thermoplastic resins and
chemicals with recycled content by 2025 and 1
million tons by 2030.
• 10 years of Green PE, recognized by ECLAC
(UN) and Chemical Week.
• Partnerships to expand the use of renewable
energy with solar and wind farms in Bahia, Rio
Grande do Norte and Minas Gerais.
positions.
ALL CAPITAL
• Approval of the Global
Sustainable Development
Strategy focusing on a circular
carbon neutral economy.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS BRASKEM
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Awards & Recognition
In 2020, we won important awards on sustainability,
diversity, governance and innovation, recognizing our
commitment to best market practices.
HUMAN CAPITAL
INTELLECTUAL CAPITAL
• 100 Open Corps: for the third consecutive year, we are
ranked among the international 100 Open Corps, and
recognized as one of the companies that most engage
with startups in Brazil. The ranking analyzed more than
1,600 companies to draw up the list of leaders in open
innovation in Brazil.
• United Nations: our production of I'm green ™
biobased polyethylene, plastic from renewable sources
made from sugarcane, has been recognized by the UN
Economic Commission for Latin America and the Ca-
ribbean (ECLAC) and by the UN Global Pact Brazil Net-
work as one of the most transformative innovations
in sustainable development in Brazil, in the Industry &
Energy category.
• 11th CIEE Best Internship Programs Award: we were
recognized as the third best company for interns,
according to CIEE (Company-School Integration Cen-
ter). This classification was based on a survey with our
interns on important aspects of the program, such as
career prospects, development and satisfaction.
• Exame Diversity Guide: for the second time in a
row we were recognized as the best company in the
Chemical and Petrochemical industry for diversity
promotion practices. We obtained above-average
grades in all categories, which include gender, people
with disabilities, ethnic-racial and LGBTI +. The award
is one of the results of our Diversity & Inclusion Pro-
gram, which aims to promote a discrimination-free
work environment.
• Bloomberg Gender Equality Index: Braskem was
selected by this index that considers company actions
to foster women leaders and talents, promoting equal
pay and inclusion. The indicator assesses and recog-
nizes companies for successful gender initiatives. In
all, 380 companies from 44 different countries are
featured in the index, of which only nine are Brazilian.
• Compliance on Top 2020: executives from our team
were awarded at Compliance on Top 2020, a major
Brazilian event in the area. Our Chief Compliance Of-
ficer, Everson Bassinello, and the Compliance Leader
for South America, Akira Ano Junior, made the list of
the 30 most admired compliance professionals.
• Ethical Company (Braskem Idesa): Braskem Idesa was
recognized by Amitai and Fortune Magazine as one of
the “Most Ethical Companies 2020” in Mexico.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
BRASKEM
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NATURAL CAPITAL
MANUFACTURED CAPITAL
• CDP: we are the leader in three 2020 rankings: Water
Management, Climate Change and Supplier Engage-
ment (Climate and Water). For the fourth consecutive
time, we made A List, the highest ranking in Water
Management, and we were leaders in Climate Change
Management for the sixth consecutive time (-A). For
the fifth consecutive time, we were featured among
leaders in Supplier Engagement (Climate and Water),
and in 2020 we reached the maximum score A List.
• Chemical Week: we won the first edition of the Sus-
tainability Award from the Financial Week & Sus-
tainability Forum promoted by Chemical Week USA.
The award Best Sustainable Initiative went to our I'm
green™ portfolio of products for the circular economy.
• Carbon Efficient Index (ICO2): since 2011*, we have been
part of the B3 Carbon Efficient Index portfolio, underscor-
ing our commitment to transparency regarding emissions.
• ABRE 2020 Award: we won the 20th edition of the
ABRE Brazilian Packaging Award in the Popular Vote
category, for the packaging of the Always Free absor-
bent made with post-consumer resin. The product is
part of the I'm green™ line and was produced in part-
nership with Johnson & Johnson and Mega Embala-
gens, using 33% post-consumer resin and reducing
carbon emissions by 10.25%.
• Plástico Sul Award 2020: we received awards in two
categories of the first edition of the South Plastic Award
for Innovation and Sustainability. This award is granted to
innovative solutions for the environment. Our Reverse
Logistics Project for Bags and Big Bags was selected in the
Sustainability category and the Always Free Packaging pro-
duced with post-consumer resin won the Innovation award
in the Film Extrusion category.
*with the exception of some quarters in which we did not integrate the
portfolio due to the liquidity criterion during this period.
FINANCIAL CAPITAL
• Sustainability Yearbook: for the seventh consecutive
time, we were featured in the Sustainability Yearbook
for our environmental sustainability policies. At least
7,000 companies in the Dow Jones Sustainability Index
were analyzed for this ranking, which is considered a
reference for investors.
• Corporate Governance Stock Trade Index (IGCT): we
were again included in the IGCT portfolio of publicly
held companies with differentiated corporate gov-
ernance practices, with additional criteria to the IGC
(Differentiated Corporate Governance Stock Index).
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
STRATEGIC PLANNING
18
Strategic
Planning
Risk Management
Challenges of the COVID-19
pandemic
Focus on Sustainable Development
Our strategic vision features six fundamental pillars as
we continue building a global company that is recog-
nized as a leader in increasingly innovative and sustain-
able chemical and plastic solutions, focused on human
beings and positive results for all stakeholders. The
innovation pillar is seen as a cross-organization enabler
for the ambitions of other pillars.
Sustainability was included as our sixth strategic pillar at
the end of 2020 to help us monitor the implementation
of projects, partnerships and investments in light of our
commitment to the 2030 sustainable development goals,
in response to current and future challenges for the planet
and society.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
19
Strategic Pillars
Pilares
Objective
Actions in 2020
Priorities 2021
1. Productivity
and
competitiveness
• Braskem as a first
quartile operator
2. Sustainability1
• Reference in the global
chemical and petrochemi-
cal sector for its sustainable
development
3. Diversification
Innovation
enables all
pillars
• Increased diversification in
raw materials, markets and
products, with new ope-
rations representing more
than 50% of EBITDA
• Be recognized as a com-
pany that promotes local
development and human
rights
4. People,
innovation,
governance and
reputation
5. Capital
allocation/
financial rigidity
• Best security performance in the past three years
• Renewal of raw material contracts with Petrobras for
petrochemical complexes in Brazil
• Increased energy efficiency thanks to Digital Center tools
• Implementation of the "Transform for Value" Program
• Launched commitments for 2030 and 2050
• Signed long-term agreements for the purchase of
renewable energy
• Advanced in partnerships for mechanical and
chemical recycling
• Expanded production and commercialization of Green PE
• Expanded sales of products with recycled content
• Started commercial production of the new PP plant
in the U.S.
• Accelerated the project to import ethane in Mexico
• 40% of the resin production capacity is now located
outside Brazil
• Reduced dependence on naphtha as a raw material,
reinforcing leadership in PP in Brazil and in the Americas
• Significant progress in the financial compensation
program and support for the relocation of impacted
families
• Diversity and Inclusion in the Internship Program
• Conclusion of external monitorship and certification of
the Compliance Program
• Increase reliability and efficiency
of industrial operations
• Ensure competitive supply of
ethane to Braskem Idesa
• Advanced in the implementation
of ESG commitments
• Intensified energy matrix diver-
sification, especially in renewable
energy and alternative fuels
• Structure new growth models
and reduce risks with cooperati-
ve models
• Expand product portfolio aligned
with business strategy
Increase
efficiency in
innovation
and accelerate
digital
transformation
• Advance with the Financial
Compensation and Relocation
Program in Alagoas
• Strengthen Braskem's image
among team members, custo-
mers, suppliers, investors and
society in general
• Reduce leverage and preserve
financial health
Aggregate capital
Manufactured
Capital
Human Capital
Intellectual
Capital
Manufactured
Capital
Natural Capital
Social and
Relationship
Capital
Manufactured
Capital
Human Capital
Social and
Relationship
Capital
Financial Capital
• Braskem as a financially he-
althy company that creates
shareholder value
• Significant reduction in corporate leverage
• Positive cash generation, with strong operating results
• Robust financial liquidity, with mostly long-term debt
¹ The Sustainability pillar was included in our corporate strategy in 2021. Nonetheless, we already made several advances in this regard over the course of 2020, in particular regarding socio-environmental commitments for 2030 and 2050.
**Intellectual Capital is a cross-organization resource for all strategic pillars.
Safe action is a permanent focus for Braskem operations: it is a non-negotiable value within our strategy
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
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Risk Management
GRI 102-15, 103-2, 103-3 | 307, 412
Risk assessment is an essential process at Braskem: it
points to opportunities and reduces negative impacts
as we strive to achieve our strategic objectives. Our risk
management methodology is based on international
references.
We classify risks into four categories - strategic, oper-
ational, financial and regulatory - based on a corporate
Risk Dictionary. Risks are periodically evaluated by the
company's executives and undergo a Regional and Global
consolidation process, that considers their probability and
potential impact. The result of this analysis is presented
graphically on a Heat Map of priorities that is assessed
and approved by the Board of Directors. Once approved,
priority risks are addressed and monitored for mitigation
and preparedness to deal with their possible adverse
effects.
In 2020, we continued to implement measures for the
prevention and mitigation of the risks assessed as pri-
orities and integrated into the Corporate Risks matrix. In
line with our commitment to promoting best practices,
we highlight here some risks that are being addressed and
monitored by management:
Risk
Risk Description
Potential Impacts
Responses
Image
of Plastic
The growing global concern for the environment and
growing trend to ban single-use plastic
• Difficulties in adapting our produc-
tion processes in time, leading to
insufficient recycling levels, inability
to meet demand and consequent
loss of market share, with adver-
se impact on company image and
reputation
Climate
change
Populations are showing increasing concern for the en-
vironment, and governments are aligning with the Paris
Agreement through public policies that encourage the
reduction of greenhouse gas emissions
• Stressed natural resources used
in our production, such as water
and stricter limits for emissions of
carbon dioxide and equivalents
Since 2018, we have openly supported the “Circular
Economy” (reutilization and reuse of resources), with
the following mitigation efforts:
1. Develop value chain, design of products and their
applications
2. Engage with consumers
3. Assess life cycle and recycling rates to identify more
sustainable options
4. Engage in partnerships to avoid plastic waste in the
oceans
Our Climate Adaptation and Mitigation Plan seeks to
continually increase the safety of industrial activi-
ties in response to extreme weather events and to
mitigate the adverse impacts of our operations on
the climate. In 2020 we announced our ambition
to reduce GHG emissions by 15% by 2030 and to
become carbon neutral by 2050, in line with the Paris
Agreement.
See more details in Water Security and Carbon Neu-
tral discussions.
Sector Cyclicity
Historically, international petrochemical products
markets have had periods of limited supply leading to
higher prices and profit margins followed by an ex-
pansion in production capacity resulting in excess su-
pply, shrinking prices and slimmer profit margins. Our
net sales revenue and gross margin are increasingly
influenced by global industry conditions over which
we have no control, and which may impact Braskem
operating results and financial situation
• Difficulties in adapting the business
to petrochemical market volatility
as we develop our corporate stra-
tegies may lead to financial losses
and/or impair our competitiveness:
this remains a key concern for
Braskem
Several actions based on three pillars help us mitigate
the risks associated with downturns:
1. Diversification of raw materials with a focus on
sustainability
2. Diversification of suppliers
3. Geographic diversification
Social and
Environmental
Issues
Our company and operations are inherently exposed
to environmental, health and safety hazards. As a
result, our business is subject to strict environmental
regulations, among others
* See other risks factors in Form 20F 2020, Annual Reports
• Despite our environmental, health
and safety standards, policies and
controls, our operations remain
subject to incidents or accidents
that may adversely affect our
business or reputation and result
in significant environmental and
social impacts
We continuously assess the potential impacts of our
industrial operations and monitor potential scenarios
that may affect the environment and surrounding
communities together with our Board of Directors
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
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Transform for Value
Striving for constant evolution, we created in February
2020 the Transform for Value Program, aiming to coor-
dinate, accelerate and foster agility and flexibility among
our areas and flows, especially through process improve-
ment. The program has four key objectives:
• Consolidate visions and centralize initiatives to im-
prove company processes, monitoring investments
and results.
• Prioritize resources, understanding that they can be
shifted or reinvested to maximize returns.
• Drive the implementation of key value-generating
initiatives.
• Improve the way we communicate our decisions and
investments, so that all company members and the
communities where we operate can understand our
intentions and follow our progress.
This global program is focused on identifying initiatives
that can bring visible gains by the end of 2023. We will use
phases or stages to better measure, manage and com-
municate our progress in each initiative.
In its first year, the TFV Program implemented six
initiatives currently in stages four (ramp-up) and five
(completed), with estimated savings of US$ 55 million/
year.* The goal for 2021 is to have 20 initiatives in stag-
es 4 and 5, with estimated savings of approximately
US$ 160 million/year.
* Values related to initiatives in stage 4 (ramp-up), in which the values are
recorded when realized and stage 5 (completed), after stabilization and/
or internal audit, according to the Transform for Value methodology for
monitoring the maturity of program initiatives.
For more information, ac-
cess our 2020 Management
Report: Annual Reports.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS Maceió Case
GRI 103-2, 103-3 | 307, 413-2
Regarding the geological phenomenon in Maceió, we re-
affirm our commitment to the safety and well-being of
the communities, focusing on Braskem's full support to
the affected families and on the technical assessment
of the situation. For more information on the history of
events and our performance, follow this link.
Understanding the events
In March 2018, there was a 2.4-degree earthquake on
the Richter scale in certain neighborhoods in Maceió
(AL), impacting the 35 rock salt wells we had explored
there for at least 40 years. The salt wells belonged
to Salgema, one of many companies incorporated
into Braskem when it was founded in 2002.As a
consequence of the earthquake, cracks appeared
in buildings and streets. Soon after the event, we
requested studies from independent specialized
institutions to identify the causes of the geological
phenomenon and indicate measures to be taken.
We shut down the rock salt mining operation and
cooperated with the necessary actions to evacuate risk
areas and ensure the safety of the local population.
STRATEGIC PLANNING
22
Braskem actions
In 2020, we signed agreements and amendments with
the competent authorities to support the evacuation and
compensation of local residents and property owners in
the areas at risk and to protect and monitor the affected
neighborhoods through our Financial Compensation and
Relocation Support Program (PCF). This Program is based
on the map of risk areas of the Civil Defense of Maceió,
published in december 2020 and independent technical
studies contracted by the company.
By the end of 2020, we had relocated about 9,200
families and made about 3,500 compensation propos-
als, with an acceptance rate of 99.7%. This enabled us
to meet the 100% vacancy requirement in the priority
areas established by the agreement. The evacuation of
the remaining areas in still in progress, until we finish
relocating around 15,000 families covered by the pro-
gram. Additional measures were implemented, such as
the Local Resident Central providing services for inhabi-
tants, and Animal Shelter Program.
We also made progress with the Salt Well Closure and
Monitoring Plan, with ongoing actions related to wells
under the recommended measures approved by Na-
tional Mining Agency (ANM) and other urban structure
measures such as demolition, security and janitorial ser-
vices in the vacated areas. In 2020, we made significant
progress in installing equipment to monitor salt wells
and surrounding neighborhoods, and we also began to
fill the first salt well with solid material.
Finally, we signed the Second Amendment to the
Residents' Compensation Agreement and the So-
cio-Environmental Reparations Agreement with the
competent authorities in December 2020. Under the
additional provisions, the Company undertakes to:
adopt the necessary measures for the stabilization
of the wells monitoring of the soil; repair, mitigate or
compensate for potential environmental impacts and
damages resulting from rock salt mining in the city of
Maceió; and repair, mitigate or compensate for po-
tential socio-urban impacts and damages resulting
from rock salt mining in the city of Maceió, allocating
the total amount of R$ 1,280 million to the adoption of
actions and measures in the evacuated areas as well
as actions and measures aimed at urban mobility and
social compensation. Yet, within the agreement with
Federal Prosecutor Officer, we will destine the adicional
amount of R$ 300 million to idemnify collective social
and moral damages and eventual contingencies relat-
ed to acitions in the vacated areas and urban mobility
actions.
Both agreements made it possible to extinguish public
civil actions against Braskem.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
STRATEGIC PLANNING
23
VINYL OPERATION
FINANCIAL IMPACT
During the chlorine-soda unit shutdown, we imported
caustic soda and dichloroethane (EDC) to honor our
commitments to customers. In order to resume our
chlorine-soda operation, we focused on the acquisition
of sea salt from third parties to be used as raw material
for the chlorine-soda plant in Alagoas, replacing brine.
The estimated cost of this acquisition project is approx-
imately R$ 68 million, out of which R$ 64 million was
spent in 2020. We announced plant start-up in February
2021. After completing the commissioning process ob-
serving all applicable safety standards, we resumed pro-
duction of chlorine-soda and EDC at the chlorine-soda
plant in Alagoas, going back to our integrated vertical
business model in Vinyl.
We ended 2020 with a provision
of R$ 9.2 billion to fulfill the
commitments arising from the
Maceió case
Considering the agreements signed, our internal eval-
uation and assessment by external consultants, and
taking into account the short-and long-term effects
of the technical studies, the existing information
and the best estimate of the expenses for the im-
plementation of the various measures related to the
geological event in Alagoas, we closed the year with
approximately R$ 9.2 billion provisioned to comply
with the obligations resulting from the agreements,
in contrast with the R$ 3.4 billion provisioned in 2019.
Over the course of 2020, approximately R$ 1.2 billion
was spent on PCF-related expenses, on the closure
and monitoring of wells and social/urban measures,
among other expenses. Approximately R$ 409 million
out of the total was written off from the current ac-
count balance intended only for the fulfillment of PCF
obligations.
Additionally, within the Residents' Compensa-
tion Agreement, the Company, DPE, MPF, MPE and
DPU agreed to transfer an additional R$ 1 billion to
Braskem's bank account specifically for PCF Fund-
ing in 10 monthly installments of R$ 100 million each,
starting in January 2021. As of May
5, 2021, the Company had made four deposits of
R$100 million each, with the other six remaining de-
posits scheduled for the subsequent months.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
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Our actions are based on technical studies carried
out by independent specialists and comply with the
recommendations submitted to competent authori-
ties. The Company is implementing the actions so far
approved by the ANM.
The plans for closure of the wells submitted to ANM
were prepared considering the best knowledge corpus
available to Braskem specialists regarding appropriate
measures to stabilize the geological phenomenon in
the region. The plans will be monitored over time and
may be adjusted according to the results obtained.
Continuous monitoring is crucial to confirm the
outcome of the current recommendations. In addi-
tion, the completion of studies to confirm the natural
filling of some cavities and sonar monitoring of cavity
behavior may in the future indicate the need for addi-
tional stabilization measures.
IN 2020 we relocated
9,200 families
from the neighborhoods affected by
the phenomenon in Maceió - 100% of
the priority areas have been vacated.
Our provisions are based on current estimates and
assumptions and may undergo future updates due
to new facts and circumstances, including changes
in the execution time and extension, effectiveness
of action plans and completion of current and future
studies with new recommendations from experts and
other new developments. Braskem still faces and we
may come to face several individual lawsuits filed by
individuals or legal entities that are not served by the
PCF or that disagree with the individual proposals for
agreement, in addition to potential claims by public
service concessionaires.
As for the measures related to the mine closure plan,
they are subject to AMN analysis and approval, mon-
itoring of the results of the ongoing measures, as
well as changes related to the dynamics of geological
events. The Company is implementing the actions so
far approved by the ANM.
Under the Socio-Environmental Reparations Agree-
ment, the actions to repair, mitigate or compensate
for potential environmental impacts and damages to
be financed by Braskem will be defined after the con-
clusion of the Environmental Diagnosis to be carried
out by a specialized and independent company. At the
present time, we cannot predict the outcome of these
Environmental Diagnostic studies or their potential
implication in disbursements in addition to the ex-
penses already provisioned by the Company. In addi-
tion, the Socio-Environmental Reparations Agreement
provides for the eventual adhesion of other entities,
including the municipality of Maceió, which will be the
subject of continued negotiations over the next few
months. To date, we have not been able to predict the
results of such negotiations or any associated costs.
Thus, the Company cannot rule out future develop-
ments related to the topic or its associated expens-
es, and the costs to be incurred by Braskem may be
different from its estimates.
We are in discussions with insurers about the coverage
of their insurance policies. The payment of indemnities
will depend on the technical evaluation of the insur-
ance coverage of these policies, given the complexity
of the matter. Accordingly, no indemnity was recog-
nized in Braskem's financial statements.
For other details on the signed
agreements, please access our
2020 Financial Statements,
note 26, by clicking here.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
25
Timeline
2018
2019
2020
1. An earthquake is registered in some
1. Braskem commissions independent
1. We signed an agreement with the
3. Amendments to the agreement
neighborhoods of Maceió.
geological studies.
2. A local Crisis Committee is installed
2. Definitive closure of salt mining
in Alagoas.
activities.
3. Creation of a protection area
based on a study by the Leipzig
Geomechanics Institute (IFG) in
Germany.
4. Terms of cooperation are signed
with City Hall to develop a number
of joint actions.
We have alloted a total of R$
9.2 billion to compensation
and security actions in the
Maceió case
Public Defender's Office of Alagoas,
the Public Defender's Office of the
Federal Government, the Federal
Prosecutor's Office and the Public
Prosecutor's Office of Alagoas
that establishes actions for the
evacuation of the defined risk areas
and the start of the Compensation
and Support Program for the
Relocation of affected residents.
We have significantly advanced the
implementation of the plan regarding
residents and also regarding Large
Equipment.
2. Progress in area monitoring mea-
sures, mine closure plan started.
signed with DPE, MPF, DPU and MPE
based on the update of the Maceió
Civil Defense Map, leading by the end
of 2020 to the extinction of the ACP
for indemnification of Residents.
4. Agreement signed with MPF and MPE
for the extinction of the Social and
Environmental ACP.
5. Agreement signed with MPT4 for the
extinction of the Labor ACP.
6. The brick-and-mortar Resident
Central was created and then
migrated online due to COVID-19
restrictions.
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Challenges of the COVID-19
Pandemic
GRI 403-2
SAFETY FOR PEOPLE
The coronavirus pandemic brought an unprecedented
challenge for people and companies around the world.
At Braskem, we focused on building a robust contingen-
cy plan to mitigate the effects of the pandemic while
continuing to pursue our short-, medium- and long-
term objectives. This plan had three main fronts:
• Safety for people
• Support for our value chain
• Reliability and resilience for our operations
The plan enabled us to adapt to the new concept work-
ing safely and cooperatively ensuring fast response
thanks to the engagement of our professionals in the
new model. We soon resumed production and commer-
cial activities, providing support to the plastic chain and
communities and ensuring our financial health during
this challenging period.
To us, safety is a non-negotiable value. As the pandemic
spread in the first months of 2020, different actions were
taken to enforce social distancing at the company. Our
existing remote work model called Flex Office enabled us
to quickly implement home office for our employees. This
made it possible for 100% of our office teams to work from
their homes, reducing contacts and commutes.
Regional support programs helped associates transition
into the new model. In Brazil, online streaming events
and courses provided assurance and support around
five pillars: Mental Well-Being, Physical Well-Being,
Social Well-Being, Support for Remote Work and Profes-
sional Improvement. Our 26 live events were attended
by 6,000 team members - 40% of all associates - and
reached a satisfaction rate of 96%. In addition, ergo-
nomic and technology kits were provided for associates
in home office mode.
We quickly adapted our routine to
health protocols, ensuring participant
safety and engagement
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
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In Mexico, an exclusive website focused on associate
well-being: “Sentirte Bien” provided relevant medical infor-
mation and psychological support over the phone. Employ-
ees migrating to home office mode received an allowance
for the purchase of functional, ergonomic chairs.
Work on the plants observed strict health protocols rec-
ommended by health agencies in Brazil and worldwide to
ensure a safe environment for employees and outsourced
personnel. We kept people at risk in their homes, reduced
our people in operations by 50%, revised shifts, imple-
mented social distancing actions and purchased personal
protective equipment.
We were nominated for the CNN Heroes Award for an
exemplary action by the members of Marcus Hook's poly-
propylene plant, 20 miles from Philadelphia, Pennsylvania:
during the first months of the pandemic, with an exponen-
tial increase in the number of cases in the United States,
the team pledged to remain isolated for 28 days at the
factory to accelerate the production of polypropylene, the
raw material used in the manufacture of N95 protective
masks and other medical supplies.
SUPPORT FOR THE VALUE CHAIN
DONATIONS GRI 203, 413
In addition to preserving the health and reliability of
our operations, we have also undertaken to support
our stakeholders: we got together with our clients
and with the communities where we operate to check
which of our products could help fight the pandemic.
We work cooperatively to combat the pandemic, di-
viding our operations into two main fronts: supporting
the communities surrounding our plants and sup-
porting the fight against the pandemic along with our
value chain.
As part of the efforts, we granted R$ 1 billion in credit to
solvent clients in Brazil. The loan could be used to pur-
chase plastic resins (PE, PP, PVC), caustic soda, solvents
and chemical specialties. The credits were made avail-
able in a record 60 days, and were limited to R$ 600,000
per client, with interest rates established as 100% of the
CDI yield. This initiative preserved our production and
the financial stability of our partners, while also ensuring
that there was no disruption in the production of medi-
cal equipment for lack of raw materials.
Our Supplier Support Program featured two actions
with great positive impact. A special fund of R$ 58.9
million was used to advance payment of invoices for
services performed, and another R$ 6.71 million was
used to make partial advance payments to suppliers.
On the first front, we donated hygiene and cleaning
products to 50,000 families living around our plants in
The plastic CHAIN
helps to fight COVID-19
Plastic plays a fundamental role in combating Covid.
Braskem brought together a task force with its value chain
to make donations possible in all locations where we operate.
More than 88 donations were made, with a total of more
than 40 million masks and face-shields produced with our
resins, besides 15 million disposable items such as packa-
ging, cutlery, glasses and garbage bags distributed in hospi-
tals and schools. Other health product donations included
1.2 million packages for gel alcohol, 800 thousand aprons
and lab coats for frontline professionals, 50 thousand hy-
giene kits, 16 thousand food baskets and 1 Field Hospital in
Alagoas (Brazil).
.
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Brazil, provided basic food baskets for 1,200 families
that work in recycling cooperatives and we supported
the government of Alagoas in the construction of the
field hospital urgently needed to save lives during the
pandemic. Also in Alagoas, in April, in partnership with
the state government, we opened a screening center to
assist patients with flu symptoms and thus help relieve
public hospitals during the pandemic peaks.
The second action front focused on supporting society
in general: we worked together with our chain to enable
the production of masks, face shields and other hospi-
tal and sanitary products. The thermoplastic resin we
donated helped produce at least 60 million masks and
at least 1 million aprons, helping to ensure the safety of
health professionals and workers fighting COVID-19. In
Europe, we donated 150,000 mask strips to more than
2,500 health institutes. Altogether, we implemented 88
donation projects to combat COVID-19.
RELIABILITY OF OPERATIONS
NORMALIZED OPERATIONS
As lockdowns lifted in a number of countries and the global
economy regained some strength, demand for chemicals
and thermoplastic resins also recovered. Thus, the utili-
zation levels of our petrochemical hubs in Brazil and our
industrial units in the USA returned to normal levels in June
2020. Our global sales followed suit, with a quarterly record
in Brazil in the third quarter. With operations and sales back
to normal, we pre-paid our revolving credit facility in July
2020.
Health and Safety remained a priority, and our members
and third parties are still working from home and/or rotat-
ing shifts in certain cases until the COVID-19 transmission
rates show considerable improvement, at which point we
will follow the return plan defined by the company.
In terms of reliability of operations, the utilization rates
of our plants in Brazil and the United States were tem-
porarily reduced responding to slack demand given
the slumping world economy and initiatives to reduce
inventories along the petrochemical production chain.
Production planning considered stock levels along the
value chain, scheduled maintenance shutdowns, pri-
ority products with greater demand in the pandemic
and the allocation of co-products to specific markets
and enabled us to honor our commitment to supply our
customers with reliable operations, leveraging synergies
between our global units to meet the needs of society.
CASH PRESERVATION
Aiming to protect our finances and the resilience of our
business in a scenario of uncertainties, we adopted a
series of measures to preserve our cash reserves. As a
preventive measure, we withdrew US$ 1 billion from our
Revolving Credit Facility in May 2020 so we could pro-
vide financial support to our chain during the economic
contraction. We also committed to reducing invest-
ments and fixed costs, and optimized working capital
with relevant suppliers.
Find out more about our actions
against COVID-19 here.
Resin donated by Braskem in 2020
enabled the production of 60 million
masks and 1 million aprons
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS Focus on
Sustainable
Development
GRI 103-2, 103-3 | 305
Back in 2009 we launched
our first 10 long-term social,
environmental and economic
goals for 2020. We met 85%
of the objectives, especially
regarding climate change.
STRATEGIC PLANNING
29
We achieved 85% of our 2009-2020 Macro Objectives
10. Strengthening of Practices
To be recognized in Brazil and worldwide as
a chemical company that contributes to
sustainable development.
9. Solution Development
To be recognized as a company that sup-
ports clients in the development of environ-
mental and social solutions; to contribute
to the perception of plastic as a solution for
sustainable development with the potential
to improve people's lives.
8. Local Development
To be recognized by surrounding communities
and society in general for our contribution to
human development, demonstrated by the
achievement of the “excellent” reputation
level in the Citizenship Dimension
of RepTrakTM Pulse.
99
75
75
7. Energy Efficiency
To be among the best large chemical
industries in the world in terms of energy
consumption intensity and to be an important
user of renewable energy.
1. Health and Safety
To be recognized as a global chemical industry reference in
safety (chemical, work and process)
84
94
94
2. Economic and Financial Results
To be among the three largest producers of thermoplastic
resins worldwide and to ensure sufficient profitability to
sustain business perpetuity while maintaining Investment
Grade. More details in Growth strategy/Strategic
objectives.
37
3. Post-consumption
To be recognized as an important agent that
contributes to plastic recycling.
100
4. Renewable Resources
To be recognized as a leader in the manufac-
ture of chemicals and thermoplastic resins from
renewable raw materials and to remain the world's
largest producer of thermoplastic resins from
renewable sources.
94
100
5. Water Efficiency
To remain a reference in the use of water resources
in the global chemical industry.
6. Climate Change
To be among the best large chemical industries worldwide in
greenhouse gas emissions and to be an important sequester of
GHG emissions through the use of renewable raw materials.
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NEW challenges: Circular
Carbon Neutral Economy
The year 2020 was the last in the period previously de-
fined for reaching our 10 sustainable development dimen-
sions, so we set out to identify new challenges for the next
decade (2020 to 2030), aligning our targets with new glob-
al demands. The definition of new Macro Objectives was a
lengthy, complex journey, involving more than 500 asso-
ciates and leaders worldwide. This process materialized in
September 2020, when our Global Sustainable Develop-
ment Strategy was approved by the Board of Directors.
The approved strategy was based on a comprehensive
analysis that covered global challenges and trends, the GRI
Materiality Matrix, Risk Management analysis for our busi-
ness and our value chain, and also considered relevant issues
for society. The new targets address all social, economic and
environmental aspects of sustainable development and are
aligned with the 17 Goals of the 2030 United Nations Agenda.
Our priorities are the SDGs we can impact the most, and the
commitments in the Paris Climate Change Agreement.
As a result, we organized our long-term actions around seven
dimensions, focusing on the Circular Carbon Neutral Econo-
my, especially by combating climate change and eliminating
plastic waste.
OUR NEW COMMITMENTS
ARE SHARED IN SEVEN DIMENSIONS
HEALTH AND
SAFETY
SUSTAINABLE
INNOVATION
SOCIAL
RESPONSIBILITY
AND HUMAN RIGHTS
Read our manifesto to learn more about our new
dimensions at Braskem. A more sustainable future today.
OPERATING
ECOEFFICIENCY
FINANCIAL
AND ECONOMIC
RESULTS
ELIMINATION
OF PLASTIC WASTE
COMBATING
CLIMATE CHANGE
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
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Our goals and commitments
In line with our new commitments, we set targets for 2025,
2030 and 2050, mainly in combating climate change and
eliminating plastic waste.
by
2025
by
2030
by
2050
1. Expand our I’m green™ portfolio to
include 300,000 tons of thermoplastic
resins and chemical products with
recycled content.
1. Expand our I’m green™ portfolio
to include 1 million tons of
thermoplastic resins and chemical
products with recycled content.
2. Be one of the best companies
to work for.
2. Prevent 1.5 million tons of plastic
waste from being incinerated,
taken to landfills or discarded in the
environment.
3. Reduce scope 1 and 2 greenhouse
gas emissions by 15% from our
baseline 2019 levels.
1. Achieve carbon neutrality.
2. Deal with social, environmental and
human rights, and diversity, equality
and inclusion issues as they emerge
in economic, social and governance
situations, acting in an integrated and
transparent manner.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
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Governance
A clear governance structure and our Global Sustain-
ability Development Committee will help us live up to
our commitments and ensure agile, assertive processes.
We created 10 work groups: seven of them are dedicat-
ed to the Macro Objectives and three are structuring
groups focused respectively on Governance, Concepts
& Tools and Communication. Each work group is typi-
cally headed by a company vice-president who receives
direct support from an executive officer.
GLOBAL SUSTAINABILITY
DEVELOPMENT COMMITTEE
Advisory Board
External members provide guidan-
ce and bring new insights into our
strategy
PMO
Transform for Value +
Sustainable Development
Provide support, flag opportunities
and help mitigate risks
Governance
Concepts
& Tools
Communication
1. Health & safety
2. Financial
and economic results
3. Eliminate
plastic waste
4. Combating
climate change
5. Operating
ecoefficiency
6. Social
responsibility
and human rights
7. Sustainable
innovation
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS STRATEGIC PLANNING
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Carbon neutral
circular economy
GRI 103-2, 103-3 | 306
We see Plastic Waste and Climate Change issues as
the main challenges for our business and value chain,
and our Global Sustainable Development Strategy is
designed to make us part of the solution for a car-
bon neutral circular economy. Read more about it in
Natural Capital.
CIRCULAR ECONOMY
Plastic is present in most people’s daily lives and
preserves the quality of products that come into
our homes. The plastic industry is responsible for
millions of jobs, and companies in other industries
also use plastic to reduce production costs and save
energy in their own production and distribution
processes.
Despite such benefits, the production of plastic is also
associated with significant environmental impacts. We are
keenly aware of our responsibility in this regard and have
publicly committed to strengthening the circular economy.
The circular economy proposes a systemic approach to
ensure continuous flow of resources, regenerating, retain-
ing or adding value while contributing to sustainable de-
velopment. This is the direction we will follow in all actions.
Our strategy for the transition to a circular economy is
based on mechanical and chemical recycling solutions.
We are partnering with the other players in our value
chain to strengthen mechanical recycling and overcome
technical and logistical barriers to ensure adequate
volumes of high-quality recycled material. We are also
working on enhanced technologies and solutions for
chemical recycling. The ultimate objective is to trans-
form plastic waste into chemical inputs, fuel or raw ma-
terial for the manufacturing of new plastic products.
CIRCULAR ECONOMY STRATEGY
Mechanical and chemical
recycling solutions guide our
transition towards a circular
economy
PLASTIC
WASTE
1
Mechanical
Recycling
2
Chemical
Recycling
3
Projects
Continue to advance in its mechan-
ical and chemical recycling projects.
Support projects to
avoid plastic waste.
DESIGN for Environment
Responding to society’s growing demands
regarding sustainability and circularity
entails much more than just using recycled
materials. We need to rethink products
from scratch, from raw materials and inputs
to final consumer experience. Braskem
proposes combining our expertise in polymers
and transformation processes with brand
owner insights into consumer behaviors and
desires. Working hand in hand, we can deliver
an incredible experience with the lowest
possible environmental impact. Aiming for
more sustainable and circular packaging,
we have developed an environment-friendly
design methodology that uses Product Life
Cycle Analysis to identify environmental
hotspots over time. Once a gap is identified
based on a scientific analysis, the next step
is to explore the consumer’s world and
journey to maximize product attractiveness
and usability. The ideation to prototyping/
testing loop is repeated until we succeed
in combining sustainability, circularity and
consumer experience in a single product.
This methodology is already being used in our
Braskem Design Challenge
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
STRATEGIC PLANNING
34
CARBON NEUTRAL GRI 103-2, 103-3 | 305
Climate change is one of the most urgent and import-
ant challenges we must face in the not-so-distant
future. Carbon neutrality is a core concept within the
strategy to reverse or at least mitigate the problem.
According to the IPCC (Intergovernmental Panel on
Climate Change), carbon neutrality is obtained when
the total amount of greenhouse gases emitted is equal
to the total amount removed on a global scale. Re-
ducing greenhouse gas (GHG) emissions can be done
by changing energy sources and industry processes,
compensating and/or capturing emissions.
The chemical industry is one of the major sources of
greenhouse gas emissions (GHE). On a global scale,
energy-intensive chemical production processes
release 1.5 billion tons of CO2 into the atmosphere,
according to the International Energy Agency.
We fully understand our impact in this respect and
have implemented several actions to foster energy
efficiency and expand the use of renewable energy
sources in order to achieve our goal of carbon neu-
trality by 2050. Our strategy to face climate change is
divided into three fronts.
STRATEGY TO ACHIEVE CARBON NEUTRALITY
CARBON
NEUTRALITY
1
Reduction
2
Compensation
3
Capture
In terms of reducing emissions, we are working on ex-
panding the use of renewable energy in our operations
while constantly improving our energy efficiency. As a
result, in the past 13 years, we have reduced the inten-
sity of our GHG emissions by around 17%. This effort
will help us achieve our intermediate target of reduc-
ing direct emissions (scopes 1 and 2) by 15%, from 10.8
million in 2019 to 9.2 million tons of CO2e by 2030. GRI
305-5 | SASB RT-CH-110a.2.
The second front is compensation, and it will go hand in
hand with the expansion of our activities in the renew-
able products market. We will increase our output of
Green Polyethylene with an additional 60,000 tons and
plan to diversify our portfolio with new solutions based
on renewable raw materials
Read more about
Natural Capital.
Our goal is to reduce total
GHG emissions by 15%
until 2030 ( from 10.8
million tons of CO in base
year 2019 to 9.2 million)
Reduce emissions
with a focus on energy
efficiency, as well as
increasing the use of
renewable energy in
current operations, es-
tablishing partnerships
aimed at innovation
and technology.
Compensation of
emissions with poten-
tial investments in the
production of chemi-
cals and polymers from
renewable sources.
Capture of carbon
emissions through
research and devel-
opment to use carbon
emissions as a raw
material.
On the third front, our innovation teams are working
tirelessly to develop creative technologies to embed
carbon capture and use in our processes. Read more
about it in Intellectual Capital.
Read more about
Intellectual Capital.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
CAPITAL’S PERFORMANCE
35
Capital
performance
Financial Capital
Manufactured Capital
Intellectual Capital
Human Capital
Social and Relationship Capital
Natural Capital
During this challenging year, we counted on the actions
of the crisis committee to deliver integrated results.
This section contains key information on our projects,
initiatives, results and business performance, organized
by capital and using accurate and reliable indicators. This
is how we express our commitment to be transparent in
our communication to society, our associates, clients,
suppliers and investors, showing how we create and
share value.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
36
Financial Capital
GRI 103-2, 103-3 | 201
DIMENSION 2:
Financial and economic results
Our strict financial discipline, careful capital allo-
cation and robust risk management are essential
elements to ensure healthy Financial Capital. In
2020, our recurring Operating Result was R$ 10,975
million and our positive Net Cash Flow totaled R$
1,276 million, with a leverage ratio of 2.94x, signifi-
cantly lower than in 2019.
Financial Performance
of Operations
RECURRING OPERATING RESULT
US$ 2,082 million
38% higher than 2019
Variation justified by:
• Better spreads for resins and main petrochemicals in
Brazil, PP in Europe and PE in Mexico
• Increased resin sales volumes in Brazil with record high in
quarterly resin sales in the Brazilian market
• Higher sales volumes in the United States, Europe
and Mexico
• In local currency, the Adjusted Operating Result was R$
10.975 million, 85% higher compared to 2019 due to the
devaluation of the Brazilian Real (BRL) against the US dollar
Signature of the UN Global
Compact’s CFO Principles
In 2020, as a member of the CFO Task Force, an initiative promoted by the
UN Global Compact, we commited to implementing the CFO Principles for
integrating Sustainable Development Goals (SDGs) into our financial and
investment management. This initiative will involve the definition of goals
related to our commitments to the SDGs, and is in line with our global strategy
and with the objective of contributing to improving people's lives through
sustainable development.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
Origin of Financial
Resources
NET CASH FLOW GENERATION
R$ 1,276 million
59% lower than in 2019
• Strong operating result
• Monetized PIS/COFINS credits totaling
R$ 1.786 million
• Reduced planned investments by 23%
• Impacts partially set off by the impact of
working capital in the cash flow in the first
half of the year due to lower purchased
volumes of imported naphtha
AVERAGE DEBT MATURITY
19 years
• 50% of the debt due later than 2030
• Average weighted cost of debt impacted
by exchange rate variation +5.3%
CASH POSITION
US$ 3,940 million
• Assures timely payment for debt maturing
in the next 84 months
• Considers the revolving credit line of
US$ 1 billion, available until 2023
Corporate
leverage RATIO
Despite the adverse scenario resulting from
the downturn in the petrochemical industry
and the uncertainties stemming from the
Covid pandemic, we have been able to pre-
serve and maintain our solid cash position
and long debt profile. In line with our firm
commitment to financial health and cost
discipline, we implemented a number of
measures to reduce our corporate leverage
ratio, aiming to return to investment grade.
Since the second quarter of 2020, we were
able to deleverage significantly, down from
7.1x to 2.9x at the end of 2020.
One of the measures taken was the issuan-
ce of US$ 600 million in hybrid bonds (su-
bordinated bonds) in July 2020, with 50%
equity treatment by Standard & Poor's and
Fitch Ratings.
CAPITAL PERFORMANCE
37
Allocation of Resources
Capital Market
INVESTMENTS:
US$ 555 million
8% below the
US$ 600 million
Including:
• Construction of the new PP plant in
the United States (Delta Project) tota-
ling R$ 802 million (US$ 162 million)
• Includes investments to restart chlorine-
-soda production in Maceió through the
acquisition of sea salt
STATEMENT OF VALUE ADDED (DVA)
R$ 9,599 million
38% higher than 2019
We aim to distribute our financial capital
in a way that adds value to all our sta-
keholders. To this end, all funds, whether
provided by third parties or deriving from
the company’s own cash flow, are inves-
ted to generate added value for society.
BRKM3
R$ 25.22 per share
(- 20.04% compared to 2019)
BRKM3
R$ 23.57 per share
(- 21.04% compared to 2019)
• Uncertainties resulting from the
COVID-19 pandemic
• Updates on the geological event in
Alagoas
• Loss of investment grade by rating
agencies
• Controlled company Braskem Idesa
in Mexico affected by problems in the
transportation of natural gas and ethane
supply
See complete DVA
in the indicator center.
For additional information
on Financial Capital, visit our
Management Report 2020.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
38
Manufactured
Capital
DIMENSION 2:
Financial and economic results
DIMENSION 3:
Eliminate plastic waste
Using our fixed assets of R$ 36 billion, in 2020 we pro-
duced a wide and diversified portfolio of hundreds
of products, with emphasis on thermoplastic resins,
especially polyethylene (PE), polypropylene (PP) and
polyvinyl chloride (PVC), implementing initiatives aimed
at increasing the productivity and competitiveness of
our operations. Our global production capacity in 2020
was approximately 21.4 million tons of chemicals and
thermoplastic resins.
CAPACITY, PRODUCTION VOLUME
AND USAGE RATES 2020 (KT/YEAR)
Brazil
(chemicals and specialties)
Brazil (green ethylene)
Brazil (PE)
Brazil (PP)
Brazil (PVC)
Brazil (caustic soda)
Brazil (chlorine)
Brazil (EDC)
U.S. (PP)
Germany (PP)
Mexico (ethene)
Mexico (PE)
Total
2020
9,468
7,636
81%
200
3,055
1,850
710
460
400
520
175
2,572
1,569
449
9
6
0
2,020
1,547
625
1,050
1,050
493
787
780
21,408
16,023
88%
84%
85%
63%
2%
2%
0%
77%
79%
75%
74%
75%
See more at Braskem
and Manufactured Capital.
*Closing of the chlorine-soda plant activities in Bahia, due to the end of the useful
life of this unit.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
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Utilization Rates
and Sales
Renewal of Raw Material
Contracts
New PP Plant in the USA
(Delta Project)
Ethylene Supply in Mexico
We aim to increase the utilization of our
petrochemical plants to dilute fixed costs
and make our operations more competi-
tive. In 2020, our capacity utilization rates
in general were affected by the temporary
reduction in activities with the sluggish
demand amidst the COVID pandemic; by
scheduled shutdowns in the United States
and Europe; and by the temporary inter-
ruption of natural gas supply in Mexico.
Yet the strong demand for thermoplastic
resins led to increasing volume of sales
in the Brazilian market, with a historical
quarterly record of resins sold, as well as
higher volume of sales in the United Sta-
tes, Europe and Mexico.
We renewed the raw material contracts
in Brazil with Petrobras, with guaranteed
supply of naphtha to the industrial units in
São Paulo, Bahia and Rio Grande do Sul, and
of ethane and propane to Rio de Janeiro. The
prices in the five-year contracts are based
on international references.
Additionally, to ensure access to the na-
phtha logistics system in Rio Grande do Sul,
we have also renewed tanking contracts with
Petrobras as well as handling and tanking
contracts with Petrobras Transporte S.A.
The Delta Project
became the largest
polypropylene plant in
the United States, with
450,000 tons annual
production capacity
You can checkour 2020
operating result by region in our
Management Report.
Our polypropylene production was strengthened in 2020 with the
opening of the new PP plant in La Porte, Texas. This is the largest
polypropylene plant in the US (estimated annual production capa-
city >450,000 tons per year), and makes us the largest PP producer
in the Americas.
As the first plant built by Braskem in the US, the Delta Project
features the most advanced technology for polypropylene pro-
duction. Aligned with the principles of sustainability and eco-ef-
ficiency, the plant will have lower emission levels and generate
less waste, operating with greater energy and water efficiency
and fostering recycling activities. The total investment in the
new facility was US$ 750 million, and the new unit will boost both
exports and domestic sales in the US market. Operations started
in September with significant ramp-up to 101,000 tons and 90%
utilization rate by the end of 2020.
Our modern innovation and technology center in Pittsburgh,
Pennsylvania, enables us to deliver pioneering polymers to our
customers. We have also announced the development of our
global export center in Charleston, South Carolina, to better serve
international clients.
For more information about our new PP plant in
the United States (Delta Project), click here.
Braskem Idesa is a joint venture formed in 2010 in
which Braskem holds 75% of the capital and Mexican
Idesa holds the remaining 25% under a shareholder
agreement. The company’s petrochemical complex
uses ethane as a raw material and consumes utilities
such as water, energy and natural gas. The operation
has long-term input supply agreements: ethane is
supplied directly by Pemex and natural gas mainly
by the same state-owned company, in this case
through Cenegas.
Since 2017, Braskem Idesa has received lower volu-
mes of ethane from Pemex than established in the
supply contract. In 2019, in order to increase the use
of the petrochemical plant, Braskem Idesa imple-
mented an alternative logistics solution for impor-
ting ethane from the United States through a priva-
te terminal in Coatzacoalcos, and we are involved in
ongoing discussions with the state company in the
search for constructive solutions to address the lack
of ethane in Mexico.
At the end of 2020, Cenegas, the state agency
responsible for the pipeline and natural gas trans-
portation system in the region, unilaterally inter-
rupted the flow of natural gas to our petrochemical
complex, paralyzing our activities due to the lack of
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
40
energy inputs. We resumed activities partially in Ja-
nuary 2021 under an experimental business model,
following safety protocols and reducing the impact
on our capacity to meet the demand of the Mexi-
can plastic industry.
Aiming to assure continuity of operations in Me-
xico, in February 2021, we signed a memorandum
of understanding with terms and conditions for
discussing potential additives to the ethane supply
contract with Pemex, as well as for the develop-
ment of an import terminal for ethane. In addition,
we signed an agreement for natural gas transpor-
tation services with Cenegas, with a final term of 15
years. This term is subject to the signature of the
definitive ethane supply agreement with Pemex.
The ethane supply contract in Mexico is still valid
and in force to date.
For more information, see
here Form 20-F.
I’m GreenTM Portfolio
GRI 103-2, 103-3 | 301, 306, 301-2
Sales of our I'm green TM biopolymers (PE Verde) and
resins with recycled content grew respectively 5% and
284% compared to 2019, despite the weaker global de-
mand in the first half of 2020 due to the COVID pande-
mic. Recycled products reached 9,000 tons sold while
Green PE reached 170,000 tons sold, both historical
records. Regarding recycled products, we have expanded
our partnerships and commercial activities to all regions
where we operate.
I'M GREENTM SALES (TONS.)
Recycled
Brazil
Resins
Chemicals
U.S. and Europe
Mexico
2020
9,067
4,490
2,765
1,725
1,810
2,766
2019
2,261
1,695
996
699
666
–
Green PE
169,632
161,424
Utilization rate
(green ethane)
87%
78%
VAR
284%
165%
178%
147%
172%
n.a.
5%
9%
Performance in Recycling
In all, our recycling efforts in 2020 con-
tributed to more than 5,000 tons of
plastic waste returning to the economy
through resins with recycled content.
In Brazil, we saw a 320% increase in the
number of clients purchasing resins with
recycled content compared to 2019.
This growing number of clients reflects
the stronger demand for plastic resins,
especially in the retail sector. Another
important factor is the expansion of our
capacity to produce recycled products
through new partnerships with recyclers,
which leads to greater availability and a
more robust portfolio.
One key achievement was our partnership
with Valoren to build a recycling line and
expand our portfolio of post-consumer
resins in Indaiatuba (SP). We will invest
R$ 67 million in the construction of a
recycling line with capacity to transform
250 million packages into 14,000 tons of
high-quality post-consumption resin per
year. Operations are expected to start in
the fourth quarter of 2021. GRI 301
In the USA, Braskem entered a long-term
relationship with Encina, a leading pro-
vider of solutions for the production of
renewable chemicals, for the production
of circular recycled polypropylene (PP).
Encina technology can produce renewab-
le chemicals from post-consumer plas-
TOTAL VOLUME OF POST-CONSUMPTION PLASTIC WASTE UTILIZED IN RECYCLED
CONTENTS (TONS.)
20182018
20192019
20202020
Brazil
Brazil
U.S.U.S. MEXMEX
EUREUR
Brazil
Brazil
U.S.U.S. MEXMEX
EUREUR
Brazil
Brazil
U.S. U.S. MEXMEX
EUREUR
107107
00
00
00
1,1131,113
666666
00
00
1,598
2,646 1,598
2,646
838838
212212
TOTAL: 107
TOTAL:
107
TOTAL: 1,779
TOTAL:
1,779
TOTAL: 5,294
TOTAL:
5,294
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS tic, and the company plans to open a new facility in
the second half of 2021. Additionally, we joined the
Polypropylene Recycling Coalition, a group committed
to increasing PP recycling, to ensure this material is
widely recovered and reused in final markets, including
food and beverage packaging, consumer goods and
automotive parts.
We also made our first sales of recycled resins in Mexico
and Europe, and will soon announce partnerships to boost
our operations in recycled products in those regions.
Plastics in LANDFILLS
In 2020, we closed an agreement with the environmental engineering company
Tecipar through which we created a sorting plant for the separation of solid and
organic waste collected by the municipalities of Barueri and Santana de Parnaíba.
The screened plastic will be directed to a Braskem recycling partner, and the
recycled resins they produce will then become raw material for new Braskem plastic
products. The project is expected to prevent 2,000 tons of plastic waste from being
dumped annually at the Santana de Parnaíba landfill. This total is equivalent to
approximately 36 million plastic packaging items.
CAPITAL PERFORMANCE
41
Some of our recycling projects
• ABSORBENTS: A partnership between Braskem, Johnson & John-
son and Mega Embalagens has strengthened our I’m green TM
Recycled portfolio. The flexible packaging of the Always Free
absorbents are now produced with 33% post-consumption resin
obtained from flexible packaging reverse logistics. This is the first
flexible thin film packaging in hygiene manufactured with 33%
post-consumption resin.
• “ANA DE AÇÚCAR”: A joint effort with footwear brand Anacapri ena-
bled the launch of a slip-on called, "Ana de Açúcar", made from our
biobased, I'm green™ EVA derived from sugarcane ethanol. Thanks to
its renewable origin, this widely used material in the footwear industry
captures 2.1 tons of CO2 for each ton produced. I’m green™ EVA is as
flexible, light and resistant as conventional plastic resin, preserving
product quality and design.
• TRAMONTINA ECOLOGICAL LINE: Tramontina's ECO decoration
line features products made with I'm green™ materials. The line was
expanded in 2020 with a new model of the Aztec ECO Vase in their
Basic line. Armchairs, chairs, vases, cachepots and watering cans are
other items in the ECO line, which grew its market share by 54% in
2020 compared to 2019.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
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INNOVATION STRUCTURE
RESULTS
293 team members
2 Technical Centers focused on
polymers
2 Technology and Innovation
Centers, in Triunfo (Brazil)
and Pittsburgh (U.S.)
19 new polyolefin grades added to
the portfolio in 2020
128 projects for the development
of new products, markets and
processes
26 new patent applications and 127
1 Process Technology Development
patent extensions
Center, Mauá, (Brazil)
1 Renewable Chemicals Research
Center in Campinas (Brazil)
7 pilot plants
2 labs for 3D printing in the cities of
Triunfo (Brazil) and Pittsburgh (U.S.)
350+ customers served globally by
our Technology Centers, with
a total of more than 21,000
analyses
INVESTMENTS IN INNOVATION 2020
AMOUNT IN R$
DETAILS
R&D investment
242.5 million
Amount related to fixed I&T expenses plus
2020 R&D Capex
Percentage of
fixed Innovation
expenditures
focused on
sustainability
Tax benefit for
innovation
36%
Percentage of Opex focused on sustainabi-
lity in 2020
75.4 millon
62.5 million in Brazil 12.9 million in the United
States
Intellectual
Capital
DIMENSION 7:
Sustainable innovation
Innovation in products, processes and mindset are es-
sential to achieve the objectives of our business strat-
egy. On the innovation front, our efforts are aimed at
Research and Development of new products and clean
technologies, while fostering open innovation and ad-
vancing our digital transformation program to improve
processes and operations through data analysis and
automation.
We also encourage all our team members to think out-
side the box and propose new alternatives for everyday
challenges: we welcome, recognize and forward the
ideas we receive. Our Digital Challenge, the Innovation
Portal and the programs related to Transform for Value
are all part of this effort.
In 2020, our structure designed to foster innovation and
technology, consisted of:
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
CAPITAL PERFORMANCE
43
Key Innovations
Today Braskem holds a portfolio of 120 innovation proj-
ects with a net present value (NPV) of approximately
R$ 8 billion in different fronts:
• Recycling: projects for both mechanical and chemical
recycling.
Objective: to accelerate the shift towards circular
economy solutions, strengthening our reputation as a
leader in sustainability.
• Lightweight: seek solutions with less weight in the final
product for the packaging industry and the automotive
sector.
Objective: to contribute to a more sustainable world, re-
ducing waste generation and greenhouse gas emissions.
• New design copolymers: production of a new family of
copolymers with customized properties.
Objective: to grow the business in markets having high-
er added value.
• Cleaner polyolefins: platform that increases the com-
petitiveness of our polyolefin portfolio.
Objective: to anticipate regulatory and chemical safety
trends.
• Activation and prepolymerization: process improve-
ment projects.
Objective: improve productivity or reduce costs.
SUSTAINABILITY INDEX
We developed and implemented the Sustainability Index
for the entire portfolio of Innovation and Technology
(I&T) projects, and this is now part of the standard plan-
ning process and approval pipeline for I&T projects. The
Index aims to ensure overall alignment with sustainabili-
ty, and all projects are assessed in terms of sustainability
from the early planning phase. A new project may have
a positive, neutral or negative impact on each dimen-
sion (water, energy, chemical safety, process/product,
greenhouse gas emissions and circularity). In 2020, 80%
of the I&T projects had a positive impact on the Sustain-
ability Index.
GREEN MEG
We have enhanced our Green MEG (monoethylene glycol)
production, a raw material for PET that moves about R$ 25
billion a year. In 2017, we signed a technological cooperation
agreement to develop a pioneering path for the produc-
tion of MEG from sugar, with a demonstration unit starting
in 2019 to showcase the key design characteristics of the
pioneering technology that transforms sugar into renew-
able MEG. In 2020, we announced the first production of
renewable MEG on a demonstration scale, and the next step
includes making samples available for testing and validation
by strategic partners.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
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3D PRINTING
Another innovation was the launch of a portfolio of exclu-
sive products for 3D printing. Braskem's polypropylene (PP)
solutions proved to be attractive and ideal for additive man-
ufacturing for their recyclability, impact resistance, dimen-
sional stability and lower density compared to other types of
plastics, contributing to lighter parts printed in 3D.
Keeping an EYE on Science
Life Cycle Assessment (LCA) is a technique that allows quantifying
and analyzing the environmental impacts of a good or service, from
the extraction of the raw material to its final disposal. LCA is based
on scientific criteria and the analysis provides accurate information to
support business decisions aimed at reducing environmental impacts
along the entire value chain. In addition to quantitative aspects, LCA
considers carbon footprint, water footprint, toxicity and depletion of
natural resources, among others.
We use LCA to support strategic decisions in terms of their
sustainability. In 2020, we launched the LCA Platform, a group of team
members from all regions responsible for disseminating acquired
knowledge and exploring new opportunities. A total of seven life cycle
analysis studies were completed in 2020; another seven were started
and are currently in development. In addition, we have developed a
scientific article that is in the final stage of approval by the journal.
Fostering Innovation
BRASKEM LABS
Braskem Labs was created in 2015 to expand and encou-
rage innovations with a positive socio-environmental
impact. The program is designed to accelerate startups
that seek to make the world more sustainable through
solutions that use chemicals and/or plastic, helping
them move forward through the next stages of maturity.
In the 2020 edition of the program, we invited compa-
nies from our value chain to join us. Our clients Ambev,
BRF, AkzoNobel and Grupo Boticário are now mentoring
startups and exploring business opportunities with them.
In the midst of social distancing requirements due to the
pandemic, 20 startups selected for the Ignition and Scale
programs went through three months of remote wor-
kshops, dynamics and networking to accelerate and build
up their business. The cycle ended with Demo Day, where
startups made their pitch to investors, executives and
business partners. In all, 25% of the accelerated star-
tups entered relationships with Braskem or participating
co-sponsors as customers, suppliers or partners.
Our portfolio has grown to 74 accelerated startups so far,
out of which 32% did business with Braskem.
Learn more here.
In all, 25% of the
accelerated startups
became Braskem customers,
suppliers or partners
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS DESIGN CHALLENGE
The Braskem Design Challenge connects professionals,
students and companies in the search for innovative and
more sustainable solutions to real packaging problems
through creativity and design, using concepts such as De-
sign for Environment, Life Cycle Assessment and Circular
Economy.
CAPITAL PERFORMANCE
45
Our Braskem Design Challenge was also taken online in
2020. The event gathered designers to solve packaging
problems for our clients Grupo Boticário and BRF follo-
wing the Design for Environment concept, which seeks to
reduce environmental impacts over the entire product life
cycle. The eighth edition of the Challenge brought toge-
ther 24 recent graduates, and the best solution received a
R$ 20,000 cash prize. The winning projects are currently in
the planning phase for technical and industrial validation/
refinement, involving Braskem and clients in the prepara-
tion for a future market launch.
Find out more about
Braskem Design Challenge
The eighth edition of the Braskem Design
Challenge attracted 24 just-graduated
professionals; the prize for the winning
solution was R$ 20,000
Digital Transformation
In 2020 alone, we developed, tested and imple-
mented digital strategies that unlocked recurring
gains of more than R$ 54 million/year, representing
a net present value (NPV) of more than R$ 150 mil-
lion. Total gains may grow to reach R$ 665 million
per year.
• Industry 4.0 technology
Aiming to maximize the efficiency of the plants, the
project connects and optimizes plants in order to
reduce costs, increase efficiency, improve the servi-
ces provided, analyze data and automate repetitive
or high-risk tasks;
• Production and inventory planning
The planning activities are based on an advanced
data analysis system that assesses the drivers for
product demand;
• Purchasing procedure
From end to end, we provide applications with in-
tuitive language that streamline services from the
moment the customer places an order until delivery
and payment.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
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Human Capital
DIMENSION 1:
Health and safety
DIMENSION 6:
Social responsibility and human rights
Our team members play the leading role in achieving our
results, growth and innovations. We aim to offer them a
better professional experience, in an increasingly diverse
and inclusive environment, guided by our non-negotiable
value of safety for people.
People Management
In 2020, we put in place measures to ensure opportunities
for growth, training and professional fulfillment, advancing
initiatives that enhance BeUx, our value proposition to
team members.
For additional information, access our
Management Report.
Human Rights GRI 103-2, 103-3 | 412
We understand that our actions at Braskem have
a positive or negative impact on human rights. Our
sustainable development efforts are grounded in the
internationally recognized rights expressed in the
International Charter of Human Rights and in the
Declaration of the International Labor Organization re-
garding fundamental principles and rights in the wor-
kplace. Our commitment to respecting human rights is
aligned with the United Nations (UN) Guiding Principles
on Business and Human Rights and covers our own
operations, the surrounding communities, our value
chains and even society as a whole. This commitment
is expressed in the Global Sustainable Development
Strategy approved by our Board of Directors and in
Braskem's Codes of Conduct, both publicly available.
The Global Sustainable Development Strategy esta-
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS blishes Braskem's responsibility to identify, assess and
manage the risks of negative impacts on human rights,
adopting preventive, mitigating or remedial actions.
Our ambition is to be recognized as a company that
promotes human rights and equity throughout our
value chain. Our global 2030 goals are to manage 100%
of the high and medium risks in human rights and to
grow the share of women in leadership positions and of
black people among our team members.
HUMAN RIGHTS
risk assessment
and management
In 2017, 100% of our operations were submitted to
the first human rights impact assessment study, and
we started introducing priority risks in the company's
risk matrix. In 2020, we continued to implement
measures for the prevention and mitigation of the
priority human rights risks, which are now integrated
in the Corporate Risk Matrix and followed up by
the Board of Directors and senior management.
These risks include Dignity and Diversity, Ethics and
Transparency, Traditional Peoples, Decent work in the
value chain and Post-consumption. Our human rights
impact assessment will be updated in 2021 for all
Braskem operations.
CAPITAL PERFORMANCE
47
Diversity, Equity and Inclusion
GRI 103-2, 103-3 | 405
Since 2014, our Diversity, Equity & Inclusion Program
has developed actions to make our work environment
increasingly diverse, inclusive and free from prejudice
and discrimination. Besides wide-reaching initiatives
across the organization, actions in five specific areas
have specific strategy and objectives aiming to inclu-
de and expand the participation of historical minori-
ties at Braskem:
GENDER
EQUITY
INDIVIDUALS
WITH DISABILITIES
RACE &
ETHNICITY
LGBTQIA+
SOCIALLY
VULNERABLE
Dignity and DIVERSITY
In 2020, we finalized a diagnostic analysis
and defined an action plan to strengthen the
prevention and remediation of harassment and
discrimination at Braskem, including better
ways to protect and hear affected people, and
measures to prevent new cases.
Our Ethics Hotline received 473 reports and
closed 578 cases (adding up cases received
in 2021 and previous years). Out of the 37
harassment reports received in 2020, 36 were
resolved, and 10 led to remedial actions.
We received 5 reports of discrimination; 4 have
been closed and 1 is still being analyzed. GRI 406-1
Learn more about
our Human Rights risk
mitigation actions here.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS Men
Women
Women in leadership
Black
Black in leadership
CAPITAL PERFORMANCE
48
Our 2020 Diversity and Inclusion Week was the first
global, online edition of the event. Lectures, panels and
debates presented tools our team members can use to
promote diversity in their daily lives.
The 2020 edition of Braskem's Internship Program was
also redesigned to enhance diversity and bring different
types of knowledge into the company. All phases of the
recruitment and selection process to fill 300 job ope-
nings took place online, and the Logical Reasoning Test
was replaced by the Decision-Making Test. Fluency in
English is no longer mandatory for 40% of the openings
and the selection of curricula is blind: recruiters have
no access to information such as applicant age and
college attended. This helps to ensure candidates are
evaluated based on their alignment with our company
culture, and not harmed by the possible need to invest
in their training.
Our Braskem Black University Student Week had five
days of online debates highlighting the importance of
diversity in the workplace. Different workshops pro-
vided hints and tips on how to write up CVs, LinkedIn
profiles, besides practical advice on how to prepare for
selection processes.
We also implemented actions to grow the number of
women in leadership positions within Braskem. In Brazil,
we were one of the signatories of the Equity is Priority
movement launched by the Global Compact Brazil
Network: we pledged to have 30% of women in senior
leadership positions by 2025. Our Braskem organization
in Europe also made progress in this regard, signing the
“Charta of Diversity,” a German initiative that encou-
rages local businesses to promote more diverse and
inclusive work environments.
RESULTS from our Internship Program
In 2020, we also had significant figures
in our Internship Program:
+ 25,000 participants
RACE
38% of the openings filled by black
candidates (11% higher than 2019)
SOCIAL CLASS
45% of the interns came from
families with a combined income of
no more than R$ 4,000 (8% more
than 2019)
GENDER
54% of the openings were
filled by women, in line with pre-
vious years
AGE
we have a 43-year-old trainee
for the first time
Diversity
Men
2018
2019
2020
Women
2018
2020
2019
2020
23%
23%
24%
77%
77%
76%
Women
in leadership
2018
2019
2020
27%
30%
30%
Black
2018
2019
2019
2020
29%
30%
30%
Black
in leadership
2018
2019
2020
13%
13%
13%
* leadership positions include coordinators,
managers, directors, vice presidents
and business leader. To find out the % of
women for each hierarchical level, visit
www.braskem.com/esgdashboard
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
49
Health and Safety at Work
GRI 103-2, 103-3 | 403, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7 | SASB RT-CH-320a.2
DIMENSION 1: Health and safety
Safety is not negotiable at Braskem. We care for our
team members, and adopt practices to ensure their
safety and health. We have occupational health and
safety committees in every operation: the local com-
mittees are responsible for local risk assessments and
educational campaigns and they also participate in inci-
dent investigations and other local actions.
To learn more about our
health and safety manage-
ment, visit here.
IMPACTS GRI 403-9 | SASB RT-CH-320a.1.
In 2020, the three activities with major accidents were i.
cargo handling, ii. accidental contact with hazardous che-
micals and iii. falls. Accident prevention actions focused
on reducing risks through technologies and equipment
that can replace workers or minimize their exposure to
risks, implementing improvements in engineering controls
and adopting preventive maintenance programs. Admi-
nistrative measures included enhanced risk analysis tools,
improved planning for the execution of activities, training
programs and more effective individual protection.
Unfortunately, in 2020 we recorded a fatal acci-
dent involving an outsourced party due to a leak of a
flammable chemical followed by a fire in our operations
in Alagoas. We have strengthened our safety practices
after the accident, and started a series of studies and
acquisitions of state-of-the-art equipment to further
improve our processes.
In spite of the regrettable fatality, we reduced the acci-
dent rate with and without lost time by 27% compared to
2019, with the best performance in the last three years.
Our goal is to achieve better results in Health and
Safety by strengthening human reliability to reduce
human errors. Other actions include careful planning
and risk assessments, training sessions and process
improvements. To this end, in 2020 we continued our
Human Reliability Program, reviewed our SSMA mana-
gement process for third parties and put the Mechani-
cal Integrity Program into practice, with an emphasis on
efficient management.
Learn more in our
ESG Dashboard.
ACCIDENT RATE CAF + SAF
(1MM/MHW)
TIER 1 ACCIDENT RATE
(1MM/MHW)
1.31
1.07
0.15
0.12
0.95
0.07
2018
2019
2020
2018
2019
2020
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS CAPITAL PERFORMANCE
50
Social and Relationship Capital
GRI 102-12, 102-13, 103-2, 103-3 | 203, 413-1, 413-2
DIMENSION 6:
Social responsibility and human rights
In line with our Global Sustainable Development Strategy,
we seek to promote actions that support social and eco-
nomic development in the communities where we operate,
with a focus on generating positive impacts and mitigating
any negative impacts generated by the operation. We also
maintain a consistent policy of Private Social Investments,
Donations and Sponsorships to build long-lasting relation-
ships with the communities that live near our facilities.
We believe partnerships are essential for reaching our
objectives. We join efforts and cooperate with different
players, both within our value chain and in society at large.
PRIVATE SOCIAL INVESTMENT
Our priority is to manage plastic consumption and post-con-
sumption practices and to foster innovation, entrepreneur-
ship and local development in all regions where we operate. In
2020, we had an increase of approximately 40% in the amount
invested in socio-environmental projects and donations,
including those related to coping with COVID-19. With severely
restricted face-to-face activities due to the pandemic, most of
the socio-environmental projects supported by Braskem were
completely paralyzed, so we reached fewer people than in 2019.
For more information on our Private Social
Investment projects, visit here.
Indicator
2018
2019
2020
Number
of people benefited¹
199,281
533,447
236,944
Donated amount
11,214,187.61
8,886,492.61
25,440,555.98²
Amount invested in PSI
9,570,478.67
14,570,068.26³
7,278,548.78
Find out more about our
partnerships here.
1. Includes PSI beneficiaries, donations and volunteering.
2. Includes donations related to coping with COVID-19.
3. Includes investments related to Maceió (TC1).
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
Aiming to ensure clear focus and consistency in our in-
teractions, in 2020 we developed a Community Engage-
ment Framework to guide the implementation of spe-
cific engagement strategies for each community. The
initiative is still in the pilot phase, and will soon unfold
into actions based on the identified impacts.
MADRE de Deus
Thirty years ago, there was a chemical leak from a tank owned by
Copanhia Carbonos Colloidais (CCC) in the city of Madre de Deus,
Bahia. The leaked product belonged to Tecnor Tecnolumen Química
do Nordeste (Tecnor) and might have been purchased by Compa-
nhia Petroquímica de Camaçari, one of the companies that later
formed the Braskem petrochemical conglomerate through a mer-
ger in 2002. Braskem has never had any corporate relations with
either CCC or Tecnor.
Given our experience in the petrochemical products, Braskem was
asked to help with analysis, studies and environmental repair of the
affected region, which has been monitored since 2003 by the local
authorities. Through and addendum to the agreement signed be-
tween authorities and CCC in 2015, Braskem is supporting the relo-
cation of families as necessary to proceed safely with repairs.
CAPITAL PERFORMANCE
51
GLOBAL VOLUNTEER PROGRAM
GOVERNMENTS AND ASSOCIATIONS
While we had to adapt our actions to the remote
format, solidarity remained a strong presence among
our team members. At the end of 2020, we had 1,075
mobilized volunteers, of which 817 were team members
and 257 were guests, benefiting about 21,000 people.
At the beginning of the year, the Residents' Center in
Maceió received two groups of volunteers who came
from all over Brazil to support the people who lived in
the neighborhoods affected by the geological phenom-
enon. We also joined the World Cleanup Day with AEPW
(Alliance to End Plastic Waste) with volunteers in six of
the countries where we operate.
Our interactions with government officials and asso-
ciations must be based on transparency, ethics and
dialogue; always initiated for a lawful reason, involving
competent agents and conducted in an appropriate,
professional manner.
To ensure that our interactions with third parties, in par-
ticular public bodies and associations, follow the criteria
described above, we maintain a strong Government
Relations team and have a robust Public Official Inter-
action Tool. Our team members can record information
about any type of interaction with public officials using
this tool.
Finally, we organized the second edition of the WeCARE
Week, a global week of online activities on the circular
economy, featuring lectures, conversation circles and
practical activities for members and their families.
Our interactions with government agencies and public
banks involve a series of fiscal and tax obligations, tax
incentives, special tax regimes and financing.
This is especially relevant given the fact that we must
necessarily engage in interactions with government
agencies and public banks regarding fiscal matters, tax
obligations, tax incentives, special tax regimes and fi-
nancing. Loans from public banks and government agen-
cies fund our growth projects, especially the National
Bank for Economic and Social Development (BNDES)
and the Northeast Bank of Brazil. We also operate with
international Credit and Export Agencies (CEAs), such as
Nippon Export and Investment Insurance (NEXI), Japan,
Euler Hermes of Germany, and SACE, Italy.
Get to know more about
our Voluteer Program here.
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Supply Chain GRI 102-9, 103-2, 103-3 | 204, 205, 308, 412, 414
In line with our principles of quality and commitment
to environmental responsibility, our supplier man-
agement is decentralized, with actions distributed in
different areas guided by our Code of Conduct for
Third Parties. This internal guideline was built on in-
ternational reference documents, such as the United
Nations Universal Declaration of Human Rights, and
a series of resolutions recommended by the Inter-
national Labor Organization. Contractors must abide
by the Code, which describes their rights and duties
regarding labor and socio-environmental practices, and
suppliers classified as having the highest potential risk
are subject to a due dilligence process.
Several other initiatives focus on increasing efficiency,
mitigating risks, improving user experience and finan-
cial return, such as the implementation of our digital
global procurement platform (Coupa), with more than
40,000 online quotations received from approximately
10,000 suppliers leading to 91% of all service acquisi-
tions. We also introduced a new inventory manage-
ment tool to optimize material inventory parameters
and storage.
Regarding decent work in the value chain, our aware-
ness-raising actions reached 402 truck drivers, 24 car-
riers and 102 team members in logistics and transpor-
tation companies. The main objective was to prevent
the sexual exploitation of children and adolescents on
highways under the Program Na Mão Certa, from Child-
hood Brazil. Along the same line, we approved a man-
agement process to assess and monitor critical suppli-
ers under more comprehensive human rights criteria.
Aiming to engage our supply chain in sustainability
issues, in 2020 we reaffirmed our partnership with CDP
Supply Chain, a program that helps companies identify
environmental risks and opportunities in their supply
chain. We achieved more than 86% engagement for
Climate and 77% for Water, the highest historical index
in nine years, reaching 119 critical suppliers in Water and
186 critical suppliers in Climate.
Partnership with CDP Supply Chain
helps to engage supply chain in
sustainability matters
We also reviewed supplier pre-qualification processes
and supplier SSMA assessments to consider the bid-
der's safety performance as an important criterium in
the selection of service providers.
ETHANOL SUPPLIERS
Ethanol suppliers go through a very strict admission
process: our Responsible Ethanol Purchase Program is
based on Compliance (mandatory requirements) and
Excellence (continuous improvement). By joining the
program, the supplier pledges to uphold high standards
in integrity, environment, human rights of workers and
communities, management of sugarcane suppliers,
quality and efficiency.
When joining the program, suppliers commit to uphold-
ing our code of conduct regarding integrity, environment,
human rights for workers and communities, sugarcane
supplier management, quality and efficiency. They must
also agree to audit in their mills, including annual visits
by sampling. Our close dialogue with ethanol suppliers
continued in 2020; we carried out remote checks on Bon-
sucro certification reports while independent monitors
audited the implementation of their management pro-
grams to ensure diligent management of ethanol suppli-
ers, especially with regard to socio-environmental issues.
4 units were remotely verified, which represented 31.69%
of the volume supplied in the year.
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Customer Chain
Aiming to map and improve our Clients' overall ex-
perience with us, Braskem started measuring CSAT
(Customer Satisfaction Score) weekly to monitor satis-
faction and identify opportunities for improving service
quickly and effectively. Weekly CSAT follow-up was im-
plemented in the second half of 2020 for all businesses
in Brazil, complementing the biannual NPS (Net Promo-
ter Score) survey. NPS has been in place since 2017, and
its findings led to more than 20 improvement actions
over the course of 2020.
CSAT indicator measures satisfaction
with customer service on a weekly
basis, in addition to the biannual NPS
measurement
Reputation Management
Our annual global reputation survey introduced in 2010
monitors how Braskem is perceived by its key audienc-
es. We use the RepTrak® methodology, created by The
RepTrak Company, to analyze stakeholder perception
under emotional aspects (Pulse®) - degree of esteem,
admiration, empathy and trust - and also as rational
indicators in seven dimensions: Products and Services,
Innovation, Work Environment, Governance, Citizen-
ship, Leadership and Performance.
In 2020, Braskem’s global Pulse® score ranged be-
tween 60 and 69 points, with the largest global
advance in history in the evaluation by participants.
Considering the seven dimensions, governance is still
the most relevant for companies in general, as well as
for Braskem.
Under strict observance of Brazilian Data Protection
law LGPD, the survey heard 7,350 people worldwide in
a great effort carried out by several internal areas of
Braskem to glean the perceptions of our diverse audi-
ences, both in relation to Braskem and regarding topics
considered essential to our business, such as Circular
Economy, ESG and Innovation.
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Natural Capital
GRI 103-2, 103-3 | 302, 303, 305, 306
DIMENSION 3:
Plastic waste
DIMENSION 4:
Climate change
DIMENSION 5:
Operational eco-efficiency
We understand the relevance of sustainable development,
and we seek to go beyond compliance with environmental
legislation. We invest in technologies and initiatives to make
our operations increasingly eco-efficient, optimizing the
use of natural resources and reducing negative impacts
on the environment. During the year, our GHG emission
intensity indicators, energy consumption, water consump-
tion, waste and effluent generation were impacted by the
reduction in production caused by the drop in demand due
to the Covid-19 pandemic.
Emissions GRI 305
Our ambition is to lead the global petrochemical sector
with the best indicators in GHG emissions, and to be a
key player in capturing carbon through the production
of renewable materials.
Since 2008, when we first structured our internal
management for this topic, we have implemented sev-
eral Mitigation and Adaptation measures to minimize
the impact of GHG emissions from our activities and
anticipate potential risks and business opportunities
related to climate change.
Our corporate inventory of GHG emissions considers
100% of our global operations and in 2020 received --
for the 10th consecutive year -- the Gold classification
of the Brazilian GHG Protocol Program (PBGHG) for its
2019 reported scopes 1, 2 and 3 emissions verified by
an independent third party.
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DIRECT GREENHOUSE GAS
EMISSIONS (SCOPE 1) (tCO2e) GRI 305-1
INDIRECT GREENHOUSE GAS
EMISSIONS (SCOPE 2) (tCO2e) GRI 305-2
INTENSITY OF GREENHOUSE GAS
EMISSIONS (TCO2E/T PRODUCTION) GRI 305-4
2018
20191
2020
10,214,251
10,032,221
10,035,761
2018
20191
2020
802,590
806,347
735,479
2018
20191
2020
0.609
0.640
0.669
In 2020, we continued reducing our absolute emissions
(scopes 1 and 2), with a slight decline of 0.62% com-
pared to the previous year, showing our sustained per-
formance even in the face of the Covid-19 pandemic.
We defined our new long-term goals in 2020, and we
also updated the emissions of our base year, so the
new figure now reflects scopes 1 and 2 results in 2019.
Another highlight is that we continue to lead CDP Cli-
mate, and we made their A-list.
Scope 1 emissions totaled 10,035,761 tCO2e, about
the same level as the previous year(+0.04%). Scope 2
emissions totaled 735,479 tCO2e, 8.79% lower than the
previous year, as a result of the reduction in the emis-
sion factors of the electricity grid. Approximately 75%
of the electricity purchased by Braskem comes from
renewable sources, especially considering the weight
of hydroelectric power plants in the Brazilian Nation-
al Interconnected System. In addition, since 2019 we
have been obtaining proof of origin for electricity con-
sumption at our units in Brazil (Market-based), repre-
senting in 2020 18,969 tCO2e in self-declaration and
10,840 tCO2e with the retirement of renewable energy
certificates, the so-called I-RECs.
1. The result published in the 2019 Report (scope 1, 9,756,560 tCO2e; scope 2, 801,634 tCO2e; and emission intensity, 0.624) was adjusted due to the revision of
the data and premise and is in the certification phase by a third party, following the criteria of the accounting methodology of the GHG Protocol. GRI 102-48
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Our performance of the carbon intensity indicator
(tCO2e/t produced) considers the impact of accumu-
lated Scopes 1 and 2 emissions (Market-based; tCO2e)
compared to the company's total production (tons
produced). Despite our progress in absolute terms,
Braskem's carbon intensity increased by 4.6% com-
pared to 2019, reaching a value of 0.669 tCO2e / t. This
increased intensity can be attributed mostly to the
5% smaller production volume, leading to lower ener-
gy performance in the units, while the events of the
pandemic of Covid-19 made it impossible to schedule
maintenance stops in some industrial units.
SIGNIFICANT ATMOSPHERIC EMISSIONS (TONS.)
GRI 305-7, SASB RT-CH-120A.1.
NOx
SOx
Volatile organic compounds (VOC)
Toxic air pollutants¹
Particulate matter (MP)
Others²
1. Includes Toxic Air Pollutants and HAP (Hazardous Air Pollutants).
2. Includes total hydrocarbons and carbon monoxide.
2018
2019
2020
10,566
11,529
11,908
4,871
9,091
595
1,381
7,989
3,982
5,989
8,753
7,523
551
932
526
976
6,622
4,810
Reduced
our greenhouse gas
emissions by more than 17% between 2008 and 2020.
Reached 94% of our 2020
long-term climate change goals.
This means
we avoided the emission
of almost 30 million tons CO2e, equivalent to planting more
than 200 million trees.
The results came from the
purchase and use of renewable
energy sources, besides efficiency
gains in our units
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CARBON CAPTURE SASB RT-CH-110a.2
Based on our commitment to sustainable innovation,
we entered a partnership with the University of Illinois,
USA, to research alternatives for the development of
ethylene from the capture and use of carbon dioxide
(CO2) emitted in industrial processes, especially from
the burning of fuels.
The project is still in the early phase of development,
and we will contribute with our know-how in the
commercialization of raw materials and production of
polymers. The final objective is to evaluate the possi-
bility of capturing CO2 emitted in our operation and
converting it into a raw material for the production of
polymers.
CARBON PRICING GRI 305-8
Since 2016, our Internal Carbon Pricing methodol-
ogy "Shadow Price" supports our investment de-
cision-making with a targeted approach to risk
management that enables us to leverage attractive
opportunities. In 2020, based on what we learned from
this methodology in Brazil, a marginal abatement cost
curve (MACC) was built with all potential mitigation
initiatives or under implementation. The analysis led to
an update of the carbon price and to the definition of
a global pricing strategy based on "Implied Price" for
100% Braskem operations worldwide. The implemen-
tation plan for this strategy includes assessing the ad-
equacy of the existing tools, updating the documents
guiding the process, training all members involved in
the effort and defining KPIs for monitoring.
10 YEARS OF
GRI 305
capacity for green ethylene in the Triunfo industrial
unit in Rio Grande do Sul from 200,000 to 260,000
tons per year. The project aiming to keep Braskem at
the forefront of the biopolymers market will start in
2021, with completion planned for the fourth quarter
of 2022.
In 2020, we celebrated a decade since operations
started in our green ethylene plant, which uses sug-
arcane ethanol as a raw material to produce poly-
ethylene. Under the I'm green ™ brand, this resin was
recognized in 2020 by ECLAC as one of the most
transformative initiatives in sustainable development
in Latin America.
Over its 10 years of existence, I'm green ™ has avoid-
ed the emission of at least 5.54 million tons of CO2,
which is equivalent to more than a year of automotive
emissions in the city of São Paulo. In addition, this resin
captures up to 3.09 tons of carbon dioxide for each ton
produced, contributing twice to reducing greenhouse
gas emissions while maintaining the same quality per-
formance as conventional resins.
Climate CHANGE
adaptation plan
In 2014, we developed a study to identify opportunities and climate
risks in 100% of our operations. Based on that study, we created
an adaptation plan with actions to mitigate or reduce all the most
significant potential climate risks. Our goal is for all actions to be
implemented by 2023.
In 2020, we achieved 72% compliance with our Adaptation Plan,
with emphasis on the completion of actions related to the threat
of severe storms/electrical discharges in all units, which was the
greatest potential impact mapped (in terms of the number of
operations impacted).
We have invested US$ 61 million in expanding biopoly-
mer production to meet the fast-growing demand
from society and our partners for sustainable prod-
ucts in recent years. We will expand our production
The next steps are to reassess the residual risk of all potential
threats for which 100% of the actions were completed,
strengthening the company's resilience in the face of potential
extreme events.
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CAPITAL PERFORMANCE
58
Energy
GRI 103-2, 103-3 | 302, 302-3, 302-4
SASB RT-CH-130a.1, RT-CH-110a.2
ENERGY EFFICIENCY AND RENEWABLE ENERGY
Reducing energy consumption and using renewable en-
ergy are key to reducing our carbon emissions. We invest
in energy efficiency projects in our plants, and we seek
long-term partnerships in our purchase of clean energy.
Currently, at least 74% of all electricity we purchase globally
comes from renewable sources.
We signed two contracts for the purchase of renewable
energy in 2020: one for solar energy with Canadian Solar,
and the other for wind power, in partnership with Casa dos
Ventos. Since 2018, we have negotiated and signed four
renewable energy purchase agreements that will avoid an
estimated 1.5 million tons of CO2e. These agreements involve
the construction of renewable energy generation farms,
contributing not only to our own sustainable development
strategy, but also improving Brazil's energy matrix, in addi-
tion to bringing economic development to the regions where
the solar farms are installed.
Our Energy Efficiency Program was created in 2019 to acceler-
ate energy initiatives and boost our competitiveness while re-
ducing our CO2e emissions. The initiatives aim to make Braskem
one of the best chemical industries in energy consumption
worldwide, and even during the pandemic we moved forward
implementing them in several plants. In Bahia, the implemen-
tation brought annual recurring savings of 833 GWh in energy
consumed, equivalent to the annual electricity consump-
tion of the entire state of Roraima with its almost 600,000
inhabitants. In addition, the initiatives also reduced 247,000
tons of CO2e in the period, or 8% of the site's emissions.
While the coronavirus pandemic and the interrup-
tion at the Chlorine-soda unit in Alagoas reduced our
operational capacity, energy efficiency initiatives also
contributed to lower energy consumption.
The indicator for energy efficiency at Braskem units is
calculated as the ratio between unit energy consump-
tion for production processes and total unit output.
This indicator is called energy intensity. The sum of the
energy consumption volumes informed for each unit
and the energy consumption reported in spreadsheet
302-1 is not the same. There are differences in the
control volume considered in the respective calculation,
ENERGY CONSUMPTION (GJ/T)
2018
20191
2020
10.94
11.09
11.23
in addition to other factors such as PCI, etc. The pur-
poses are also different: the first is used to measure the
improvement in energy efficiency at unit level, while the
second serves accounting and financial purposes, includ-
ing possible negotiations with the unit energy provider.
The following graphics show consumption, type and
source of energy at Braskem.
PERCENTAGE OF CONSUMPTION BY TYPE OF ENERGY IN RELATION TO TOTAL CONSUMPTION
Residual Fuels
Natural Gas
Electricity
Coal
Other Fuels
0.1%
4.6%
8.3%
0.5%
4.2%
7.4%
6.9%
4.6%
6.8%
2018
2019
2020
61.8%
62.2%
65.5%
25.2%
25.7%
23%
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS PERCENTAGE OF RENEWABLE
ENERGY IN THE BRASKEM ENERGY MATRIX
TOTAL RENEWABLE
ENERGY (%)
RENEWABLE ENERGY
PURCHASED (%)
2018
2019
2020
7.1
6.4
5.1
2018
2019
2020
RENEWABLE ENERGY PURCHASED (%)
15.1
12.7
12.2
2018
20191
2020
74
72
74
COMMITMENTS AND GOALS
In line with our medium-and long-term commitments to
reduce 15% of CO2e emissions by 2030 and achieve car-
bon neutrality by 2050, our goal for the short term is to
achieve a reduction of 250kt/year in 2022 by using energy
efficiency solutions and renewable energy throughout 2021.
In terms of our energy matrix, we are establishing partner-
ships to raise the percentage of electricity purchased from
renewable sources to more than 85% by 2030.
CAPITAL PERFORMANCE
59
Water and Effluents
GRI 303, 303-1, 303-2, 303-4, 303-5
Our annual eco-efficiency targets for water consumption
and effluent generation per ton of products (m³ t) are
monitored monthly by the company's top leadership. At
unit level, effluent management observes local legislation
and internal procedures related to the characteristics of
the operation in the region, including substances of inter-
est and composition of effluents. These substances and
their respective limits are listed in specific national/re-
gional legislation or established in the operating licenses.
In recognition for our water management efforts, for the
fourth consecutive time we made A List in CDP Water,
ranking among the best publicly held companies in water
governance.
CEO Water Mandate
As a result of our efforts in water
efficiency, in July 2019 we joined the
CEO Water mandate, a UN Global
Compact platform that brings together a
community of more than 150 companies
around the world committed to
advancing water management. In 2020,
we continued our efforts to identify and
implement collective actions to reduce
the water risk of the hydrographic basins
where we are present, interacting with
several actors, among which there were
no contact with public agents.
Indicator
2018
2019
2020
Total water consumption (m3)
75,715,960
72,389,471
69,341,060
water consumption (m3/t)
4.28
4.31
4.31
Total effluent generation (m3)
20,981,429
21,922,812
19,672,409
Effluent generation (m3/t)
Water reuse (%)
1.19
26.9%
1.31
25.4%
1.22
25.8%
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Water Security
Our long-term goal is to ensure that all the water used
by Braskem comes from low-risk sources. In a challeng-
ing global scenario, our water risk assessment identified
severe droughts as the greatest potential risk in Brazil,
for example. We carry out periodic checks to ensure we
have enough quality water for the operation of our plants
in every region. Diagnostic analyses guide Braskem's
Adaptation Plans, aiming to mitigate availability risks and
to allocate investments to safer water sources, such as
reused or desalinated water.
WATER SECURITY INDEX
2018
75%
2019
75%
2020
83%
Compared to 2019, our units in Mexico and Germany
maintained the same Water Security Index - 100%.
The indicator for USA operations was reduced due
to the completion of the Texas River Basin risk as-
sessment pointing to higher long-term water risk
(by 2040). In contrast, Brazil operations improved by
around 12% thanks to progress in shifting from sur-
face water abstraction to safer underground water
abstraction, in addition to other internal initiatives to
increase water reuse and recycling. Given the pro-
portion of Brazilian operations within Braskem's total
number of plants, their weight in the indicator is 80%,
which explains why overall corporate results rose from
75% in 2019 to 82.9% in 2020, with a total of 18.86%
of our water consumption coming from areas where
water stress is high or very high.
Waste GRI 103-2, 103-3 | 306, 306-1, 306-2, 306-3
A truly circular economy starts at home. That is why
we have several initiatives to avoid internal waste
generation. Our priorities are: 1. Avoid generation; 2.
Reduce; 3. Reuse; 4. Waste treatment; 5. Final Dis-
posal. Our efforts in the different categories aim to
reduce waste treatment costs, increase eco-effi-
ciency rates and prevent environmental liabilities.
Since 2018, we are members of Operation Clean
Sweep, and we are committed to adopting the best
practices in the control of pellets, flakes and dust in
all our industrial and logistics units. Our goal was to
become a member of OCS Blue - the highest level of
participation in the program - by 2020, and we cele-
brate the fact that we are now in this category both
in Brazil and in the United States. Our Pellet Zero
Program combined with other pellet containment
actions at unit level collected approximately 3,000
tons of pellets, flakes and powders, preventing them
from reaching rivers and seas.
We collected 3,000 tons of
pellets, flakes and powders
and reached the OCS Blue
level of the Operation Clean
Sweep program in 2020
Indicator
Total waste
generation (Kg)
Indicator -
Waste generation (Kg/t)
2018
2019
2020
37,669,700
37,002,579
35,892,667
2.13
2.20
2.23
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS
ABOUT THE REPORT
61
Questions, feedback
and suggestions about
this report can be sent to
braskem-ri@braskem.com.br
GRI 102-53
About the Report
The Braskem 2020 Integrated Report presents our financial
and non-financial results from January 1 to December 31,
2020, including the legal entities Braskem has operational
control of and/or entities that have their information con-
solidated in Braskem financial statements. Released annu-
ally, the report relies on data collected globally and engages
different areas of the company, led by Investor Relations,
Sustainable Development and Corporate Marketing.
Aiming to ensure the report meets the needs of our
diverse audiences, we follow the guidelines of the Global
Reporting Initiative (GRI), Standards version, Essential
agreement option; the guidelines of the Sustainabili-
ty Accounting Standards Board (SASB), as well as the
integrated reporting principles proposed by the Interna-
tional Integrated Reporting Council (IIRC), also abiding by
CVM Resolution No. 14/2020 and fulfilling all mandatory
requirements of Technical Guideline CPC 09. We address
our chosen ESGs in addition to presenting the economic
and financial information provided externally by KPMG
and reviewed by Braskem's governance bodies, including
the Board of Directors. GRI 102-48, 102-49, 102-51
Materiality
Braskem periodically assesses materiality (the relevance of
sustainability topics) to define its long-term objectives and
strategy for contributing to Sustainable Development.
The topics contained in this report are material to the
company's strategy in that they have a positive or nega-
tive effect on our ability to generate long-term value, as
defined by our materiality matrix.
This structured process includes stakeholder consul-
tation to ensure Braskem maintains a clear focus while
pursuing its purpose of improving people's lives through
plastic chemicals.
As a petrochemical company and supplier of raw ma-
terials for different plastic product chains, Braskem
consistently focuses on the possible impacts caused
by its businesses on areas such as health and safety,
economic and financial results, development of mem-
bers, local development, eco-efficiency of its opera-
tions, post-consumer plastic, among others. For more
information about our sustainable performance, see our
Global Policy on Sustainable Development.
The matrix originally defined in 2013 was reviewed in-
ternally in 2020; the process and methodology used can
be found here. GRI 102-21, 102-40, 102-42, 102-43, 102-44,
102-47, 103-1
The internal review considered the corporate risks iden-
tified by our risk management procedure and pointed
out the rationale for our 2030 Commitments, as well as
their correlation with UN SDGs.
INTEGRATED REPORT 2020A MESSAGE FROM THE BUSINESS LEADERBRASKEMSTRATEGIC PLANNINGCAPITAL PERFORMANCEABOUT THE REPORTCREDITS Material topic
GRI content summary
Summary of SASB content
62
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 MATERIAL TOPICS
63
Material topic
Material topic
Sustainability dimension (Braskem global sustai-
nability strategy)
GRI and SASB indicators
REFERENCE BETWEEN THE COMPANY'S MATERIAL THEMES AND GRI AND SABS INDICATORS
Non-renewable resources
Dimension 3: Plastic Waste
Dimension 4: Climate Change
Health and safety
Dimension 1: Health and Safety
301-1 Materials used by weight or volume
403-1 Health & Safety Management System
403-10 Work-related health problems
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
403-5 Training in health and occupational safety
403-6 Promoting workers' health
403-7 Prevention and mitigation of impacts on occupational health and safety directly linked
to commercial relations
403-8 Workers covered by the occupational health and safety management system
403-9 Work-related injuries
RT-CH-320a.1 - (1) Total recordable incident rate (TRIR) and (2) Fatality rate for (a) direct em-
ployees and (b) contract employees
RT-CH-320a.2 - Description of efforts to assess, monitor, and reduce exposure of employees
and contract workers to long-term (chronic) health risks
RT-CH-540a.1 - Process safety incidents count (PSIC), process safety total incident rate (PS-
TIR) and process safety incident severity rate (PSISR)
RT-CH-540a.2 - Number of transport incidents
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 MATERIAL TOPICS
64
Material topic
Sustainability dimension (Braskem global sustai-
nability strategy)
GRI and SASB indicators
Human Rights & Equity
Dimension 6: Social Responsibility and Human
Rights
405-1 Diversity in Governing Bodies and Employees
412-2 Employees trained in human rights policies and practices
405-2 Ratio of wages and remuneration between women and men
202-1 Proportion of lowest paid wages, by gender, compared to local minimum wage
202-2 Percentage of senior management hired from the local community
Safe use of products
Dimension 1: Health and Safety
412-3 Significant investment agreements and contracts that include human rights clauses or
that have been subject to assessment regarding human rights
406-1 Incidents of discrimination and corrective actions taken
414-1 New suppliers selected based on social criteria
416-1 Evaluation of the health and safety impacts of product and service categories
417-1 Product and service information and labeling requirements
RT-CH-410b.1 - (1) Percentage of products that contain Globally Harmonized System of
Classification and Labeling of Chemicals (GHS) Category 1 and 2 Health and Environmental
Hazardous Substances, (2) percentage of such products that have undergone a hazard as-
sessment
RT-CH-410b.2 - Discussion of strategy to (1) manage chemicals of concern and (2) develop
alternatives with reduced human and/or environmental impact
RT-CH-410c.1 - Percentage of products by revenue that contain genetically modified orga-
nisms (GMOs)
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 MATERIAL TOPICS
65
Material topic
Sustainability dimension (Braskem global sustai-
nability strategy)
GRI and SASB indicators
Water
Dimension 5: Operational Eco Efficiency
Economic Performance
Dimension 2: Economic & Financial Results
Social Investments and Community
Dimension 6: Social Responsibility and Human
Rights
303-1 Interactions with water as a shared resource
303-2 Management of impacts related to water discharges
303-3 Water withdrawal
303-4 Water Disposal
303-5 Water consumption
RT-CH-140a.1 - (1) Total water withdrawn (2) Total water consumed, percentage of each in
regions with high or extremely high baseline water stress
RT-CH-140a.2 - Number of incidents of non-compliance associated with water quality per-
mits, standards, and regulations
RT-CH-140a.3 - Description of water management risks and discussion of strategies and
practices to mitigate those risks
201-1 Direct economic value generated and distributed
201-2 Financial implications and other risks and opportunities arising from climate change
201-4 Financial assistance received from the government
RT-CH-000.A - Production by reportable segment
203-1 Development and impact of infrastructure investments and services offered
204-1 Proportion of spending with local suppliers
413-1 Operations with local community engagement, impact assessment and local develop-
ment programs
413-2 Operations with actual and significant negative impacts on local communities
RT-CH-210a.1 - Discussion of engagement processes to manage risks and opportunities as-
sociated with community interests
Free competition
Dimension 2: Economic & Financial Results
206-1 Lawsuits for unfair competition, trust and monopoly practices
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 MATERIAL TOPICS
66
Material topic
Sustainability dimension (Braskem global sustai-
nability strategy)
GRI and SASB indicators
Corruption
Dimensão 2: Economic & Financial Results
205-2 Communication and training on anticorruption policies and procedures
205-1 Operations subjected to risk assessments related to corruption
Public policies
N/A
205-3 Confirmed cases of corruption and measures taken
415-1 Political contributions
RT-CH-530a.1 - Discussion of corporate positions related to government regulations and/or
policy
Local labor
Dimension 6: Social Responsibility and Human
Rights
412-1 Operations subject to human rights impact analyses or assessments
Transparency & Integrity
Dimension 2: Economic & Financial Results
Dimension 4: Climate Change
307-1 Non-compliance with environmental laws and regulations
419-1 Non-compliance with social and economic laws and regulations
302-1 Energy consumption within the organization
302-3 Energy intensity
302-4 Reduction in energy consumption
305-1 Direct greenhouse gas emissions (Scope 1)
305-2 Indirect emissions from energy acquisition (Scope 2)
305-3 Other indirect greenhouse gas emissions (Scope 3)
Climate Change and Energy
Dimension 5: Operational Eco Efficiency
305-4 Intensity of greenhouse gas emissions
305-5 Reduction of greenhouse gas emissions
RT-CH-110a.1 - Gross global Scope 1 emissions, percentage covered under emissions-limiting
regulations
RT-CH-110a.2 - Discussion of long-term and short-term strategy or plan to manage Scope 1
emissions, emissions reduction targets, and an analysis of performance against those targets
RT-CH-130a.1 – (1) Total energy consumed, (2) percentage grid electricity, (3) percentage
renewable, (4) total self-generated energy
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 MATERIAL TOPICS
67
Material topic
Sustainability dimension (Braskem global sustai-
nability strategy)
GRI and SASB indicators
Air
Dimension 5: Operational Eco Efficiency
305-6 Emissions of ozone-depleting substances (OSD)
305-7 NOx, SOx and other significant air emissions
RT-CH-120a.1- Air emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX, (3)
volatile organic compounds (VOCs), and (4) hazardous air pollutants (HAPs)
306-1 Generation of waste and significant impacts related to waste
306-2 Management of significant impacts related to waste
Waste
Dimension 5: Operational Eco Efficiency
306-3 Waste generated
306-4 Waste not for disposal
306-5 Waste for disposal
Biodiversity
N/A
RT-CH-150a.1 - Amount of hazardous waste generated, percentage recycled
304-1 Owned, leased or managed operational units within or in the vicinity of protected areas
and other areas of high biodiversity value located outside protected areas
304-2. Significant impacts of activities, products and services on biodiversity
304-3. Protected or restored habitats
Post-consumption
Dimension 3: Plastic Waste
301-2. Materials sourced from recycling
Suppliers - Environmental Manage-
ment
N/A
Product development - Environmen-
tal
Dimension 7: Sustainable Innovation
* Material topic 15 was revised from "Equal Opportunities" to "Human Rights & Equaliity"*
308-1 New suppliers selected based on environmental criteria
DMA Innovation
RT-CH-410a.1 - Revenue from products designed for use-phase resource efficiency
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
68
GRI content summary GRI 102-55
GRI Standard
Disclosure
Page/URL
Omission
SDGs
Global
Compact
General disclosures
Organizational Profile
GRI 102: 2016
General Disclosures
102-1 Name of Organization
102-2 Activities, brands, products and services
6
7
102-3 Location of headquarters
102-4 Location of operations
102-5 Ownership and legal form
102-6 Markets served
102-7 Scale of the organization
120, Lemos Monteiro street - Butantã - São Paulo/SP.
Zip code 05501-050
8
Publicly held corporation
8
8
102-8 Information on employees and other workers
Available at www.braskem.com/esgdashboard
8
102-9 Supply chain
52
102-10 Significant changes in the organization and its
supply chain
No significant change during the period covered by the report.
102-11 Precautionary Principle or approach
102-12 External initiatives
102-13 Membership of associations
Strategy
GRI 102: 2016
General Disclosures
102-14 Statement from senior decision-maker
102-15 Key impacts, risks and opportunities
As a principle and in accordance with the Health, Safety, Environment,
Quality, and Productivity Policy, Braskem does not produce, handle,
use, market, transport, or dispose of any product if unable to do so
safely, with a minimum impact of the product on the environment.
50
50
3
20
8
8
8
8
8
8
6
4
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
GRI Standard
Disclosure
Page/URL
Omission
SDGs
69
Global
Compact
16
Ethics and Integrity
GRI 102: 2016
General Disclosures
Governance
102-16 Values, principles, standards and norms of
behavior
102-17 Mechanisms for advice and concerns about
ethics
102-18 Governance structure
102-19 Delegating authority
102-20 Executive-level responsibility for economic,
environmental and social issues
9
11
10
10
10
GRI 102: 2016
General Disclosures
102-21 Consulting stakeholders on economic,
environmental and social topics
Available at https:/www.braskem.com.br/material-
issuesassessement
102-22 Composition of the highest governance body
and its committees
10
102-23 Chair of the highest governance body
Available at www.braskem.com.br/corporate-governance
102-24 Nominating and selecting the highest
governance body
102-25 Conflicts of interest
102-26 Role of the highest governance body in setting
purpose, values and strategy
102-27 Collective knowledge of the highest governance
body
102-28 Evaluating the highest governance body’s per-
formance
102-29 Identifying and managing economic, environ-
mental, and social impacts
Available at www.braskem.com.br/corporate-governance
10
10
10
10
Available at www.braskem.com.br/corporate-governance
102-30 Effectiveness of risk management processes
20
102-31 Review of economic, environmental, and social
topics
Available at www.braskem.com.br/corporate-governance
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
GRI Standard
Disclosure
Page/URL
Omission
SDGs
70
Global
Compact
Stakeholder Engagement
102-40 List of stakeholder groups
Available at https://www.braskem.com.br/material-issues-
assessement
102-41 Collective bargaining agreements
Available at www.braskem.com/esgdashboard
8
3
GRI 102: 2016
General Disclosures
102-42 Identifying and selecting stakeholders
102-43 Approach to stakeholder engagement
102-44 Key topics and concerns raised
Reporting Practice
102-45 Entities included in the consolidated financial
statements
102-46 Defining report content and topic Boundaries
GRI 102: 2016
General Disclosures
102-47 List of material topics
102-48 Restatements of information
102-49 Changes in the reporting
102-50 Reporting period
102-51 Date of most recent report
102-52 Reporting cycle
102-53 Contact point for questions regarding the
report
102-54 Claims of reporting in accordance with the GRI
Standards
102-55 GRI Content Index
102-56 External assurance
Available at https://www.braskem.com.br/material-issues-
assessement
Available at https://www.braskem.com.br/material-issues-
assessement
Available at https://www.braskem.com.br/material-issues-
assessement
Available at www.braskem.com/esgdashboard
Available at https://www.braskem.com.br/material-issues-
assessement
Available at https://www.braskem.com.br/material-issues-
assessement
55 and 61
61
2
61
2
61
61
68
82
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
GRI Standard
Materials
GRI 201: Economic Performance
Disclosure
Page/URL
Omission
SDGs
71
Global
Compact
GRI 103:
Management
approach 2016
GRI 201: 2016
Economic
Performance
Market presence
GRI 103:
Management
approach 2016
GRI 202: Market
Presence 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
Available at https://www.braskem.com.br/material-issues-
assessement
36
36
201-1 Direct economic value generated and distributed
Available at www.braskem.com/esgdashboard
201-2 Financial implications and other risks and
opportunities due to climate change
Available at www.braskem.com/esgdashboard
201-4 Financial assistance received from government
Available at www.braskem.com/esgdashboard
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
202-1 Ratio of standard entry level wage by gender
compared to local minimum wage
202-2- Proportion of senior management hired from
the local community
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Indirect Economic Impacts
8, 9
13
16
1, 5, 8
8
7, 8
6
6
GRI 103:
Management
approach 2016
GRI 203: Indirect
Economic Impacts
2016
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
203-1 Infrastructure investments and services
supported
Available at www.braskem.com/esgdashboard
5, 9, 11
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
GRI Standard
Disclosure
Page/URL
Omission
SDGs
Procurement Practices
GRI 103:
Management
approach 2016
GRI 204:
Procurement
Practices 2016
Anti-Corruption
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
204-1 Proportion of spending on local suppliers
Available at www.braskem.com/esgdashboard
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
Available at https://www.braskem.com.br/material-issues-
assessement
Available at https://www.braskem.com.br/material-issues-
assessement
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
205-1 Operations assessed for risks related to
corruption
GRI 205: Anti-
corruption 2016
205-2 Communication and training about anti-
corruption policies and procedures
205-3 Confirmed cases of corruption and actions
taken
Anti-competitive behavior
GRI 103:
Management
approach 2016
GRI 206: Anti-
competitive
Behavior 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
206-1 Legal actions for anti-competitive behavior,
anti-trust and monopoly practices
11 and 12
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Available at https://www.braskem.com.br/material-issues-
assessement
11
11
Available at www.braskem.com/esgdashboard
8
16
16
16
16
72
Global
Compact
10
10
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI Standard
Materials
GRI 103:
Management
approach 2016
GRI 301: Materials
2016
Energy
GRI 103:
Management
approach 2016
GRI SUMMARY
Disclosure
Page/URL
Omission
SDGs
73
Global
Compact
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
Available at https://www.braskem.com.br/material-issues-
assessement
7 and 40
7 and 40
301-1 Materials used by weight or volume
Available at www.braskem.com/esgdashboard
301-2 Recycled input materials used
40
8, 12
8, 12
8
8, 19
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
302-1 Energy consumption within the organization
GRI 302: Energy
2016
302-3 Energy intensity
302-4 Reduction of energy consumption
Water and effluents
GRI 103:
Management
approach 2016
GRI 303: Water and
Effluents 2018
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
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
Available at https://www.braskem.com.br/material-issues-
assessement
58 and 59
58 and 59
58
58
58
Available at https://www.braskem.com.br/material-issues-
assessement
58 and 59
58 and 59
59
59
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
59
7, 8, 12, 13
7, 8, 12, 13
7, 8, 12, 13
8, 9
6, 12
7, 8
6
6
6
6
8
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
Disclosure
Page/URL
Omission
SDGs
74
Global
Compact
GRI Standard
Biodiversity
GRI 103:
Management
approach 2016
GRI 304:
Biodiversity 2016
Emissions
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
304-1 Operational sites owned, leased or managed
in, or adjacent to, protected areas and areas of high
biodiversity value outside protected areas
304-2 Significant impacts of activities, products and
services on biodiversity
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
304-3 Habitats protected or restored
Available at www.braskem.com/esgdashboard
103-1 Explanation of 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
Available at https://www.braskem.com.br/material-issues-
assessement
29, 34, 54, 55, 56 and 57
29, 34, 54, 55, 56 and 57
55
55
305-3 Other indirect (Scope 3) GHG emissions
Available at www.braskem.com/esgdashboard
GRI 305: Emissions
2016
305-4 GHG emissions intensity
305-5 Reduction of GHG emissions
55
56
305-6 Emissions of ozone-depleting substances (ODS)
Available at www.braskem.com/esgdashboard
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx) and
other significant air emissions
56
6, 14, 15
6, 14, 15
6, 14, 15
3, 12, 13, 14, 15
3, 12, 13, 14, 15
13, 14, 15
13, 14, 15
13, 14, 15
13, 14, 15
13, 14, 15
8
8
8
8
8
8
8, 9
8, 9
8
8
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
Disclosure
Page/URL
Omission
SDGs
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
306-1 Generation of waste and significant impacts
related to waste
306-2 Management of significant waste-related
impacts
306-3 Waste generated
306-4 Waste diverted from disposal
306-5 Waste directed to disposal
Available at https://www.braskem.com.br/material-issues-
assessement
33, 40 and 60
33, 40 and 60
60
60
60
60
60
75
Global
Compact
8
8
8
GRI Standard
Waste
GRI 103:
Management
approach 2016
GRI 306: Waste
2020
Environmental Compliance
GRI 103:
Management
approach 2016
GRI 307:
Environmental
Compliance 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
307-1 Non-compliance with environmental laws and
regulations
Supplier Environmental Assessment
Available at https://www.braskem.com.br/material-issues-
assessement
20 and 22
20 and 22
Available at www.braskem.com/esgdashboard
16
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
Disclosure
Page/URL
Omission
SDGs
76
Global
Compact
GRI Standard
GRI 308:
Environmental
Assessment of
Suppliers 2016
308-1 New suppliers that were screened using
environmental criteria
Available at www.braskem.com/esgdashboard
Occupational Health and Safety
GRI 103:
Management
approach 2016
103-1 Explanation of 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
403-2 Hazard identification, risk assessment and
incident investigation
Available at https://www.braskem.com.br/material-issues-
assessement
49
49
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
403-3 Occupational health services
Available at www.braskem.com/esgdashboard
403-4 Worker participation, consultation and
communication on occupational health and safety
403-5 Worker training on occupational health and
safety
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
403-6 Promotion of worker health
Available at www.braskem.com/esgdashboard
GRI 403:
Occupational
Health and Safety
403-7 Prevention and mitigation of occupational
health and safety impacts directly linked to business
relationships
403-8 Workers covered by an occupational health and
safety management system
403-9 Work-related injuries
403-10 Work-related illnesses
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Diversity and Equal Opportunity
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
Available at https://www.braskem.com.br/material-issues-
assessement
47 and 48
47 and 48
16
8
3, 8
3, 8
8
8
3
8
8
3, 8, 16
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
77
GRI Standard
Disclosure
Page/URL
Omission
405-1 Diversity of governance bodies and employees
Available at www.braskem.com/esgdashboard
405-2 Ratio of basic salary and remuneration of
women to men
Available at www.braskem.com/esgdashboard
GRI 405: Diversity
and Equal
Opportunity 2016
Non-Discrimination
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
GRI 406: Non-
discrimination 2016
406-1 Incidents of discrimination and corrective
actions taken
Human Rights Assessment
GRI 103:
Management
approach 2016
GRI 412: Human
Rights Assessment
2016
Local Communities
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
412-1 Operations that have been subject to human ri-
ghts reviews or impact assessments
412-2 Employee training on human rights policies and
practices
412-3 Significant investment agreements and contrac-
ts that include human rights clauses or that underwent
human rights screening
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
SDGs
5, 8
5, 8, 10
Global
Compact
6
6
5, 8
4, 5
Available at https://www.braskem.com.br/material-issues-
assessement
47 and 48
47 and 48
47
Available at https://www.braskem.com.br/material-issues-
assessement
20, 46 and 52
20, 46 and 52
Available at www.braskem.com/esgdashboard
1
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
2, 6
1, 2, 6
Available at https://www.braskem.com.br/material-issues-
assessement
50
50
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
GRI Standard
Disclosure
Page/URL
Omission
SDGs
GRI 413: Local
Communities 2016
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
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
5, 8, 10
78
Global
Compact
10
GRI 103:
Management
approach 2016
GRI 414: Supplier
Social Assessment
2016
Public Policy
GRI 103:
Management
approach 2016
GRI 415: Public
Policy 2016
103-1 Explanation of material topic and its Boundary
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
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
Available at https://www.braskem.com.br/material-issues-
assessement
52
52
Available at www.braskem.com/esgdashboard
5, 8, 16
6
Available at https://www.braskem.com.br/material-issues-
assessement
11
11
415-1 Political contributions
Available at www.braskem.com/esgdashboard
16
10
Customer Health and Safety
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach.
Available at www.braskem.com/esgdashboard
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 GRI SUMMARY
GRI Standard
Disclosure
Page/URL
Omission
SDGs
GRI 416: Customer
Health and Safety
2016
416-1 Assessment of the health and safety impacts of
products and services
Marketing and Labeling
Available at www.braskem.com/esgdashboard
GRI 103:
Management
approach 2016
103-1 Explanation of material topic and its Boundary
Available at https://www.braskem.com.br/material-issues-
assessement
103-2 The management approach and its components
Available at www.braskem.com/esgdashboard
103-3 Evaluation of the management approach
Available at www.braskem.com/esgdashboard
GRI 417: Marketing
and Labeling 2016
417-1 Requirements for product and service
information and labeling
Socioeconomic Compliance
GRI 103:
Management
approach 2016
GRI 419:
Socioeconomic
Compliance 2016
103-1 Explanation of material topic and its Boundary
103-2 The management approach and its components
103-3 Evaluation of the management approach
419-1 Non-compliance with social and economic laws
and regulations
Available at www.braskem.com/esgdashboard
Available at https://www.braskem.com.br/material-issues-
assessement
11
11
Available at www.braskem.com/esgdashboard
12
16
79
Global
Compact
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 SASB SUMMARY
80
Summary of SASB content
Topic
SASB - Chemicals
Greenhouse gas
emissions
Air Quality
Power Management
Metrics
Page/ URL
RT-CH-110a.1. Gross global Scope 1 emissions,
percentage covered by emissions limit regulations
55 and available at https://www.braskem.com.br/material-issues-
assessement
RT-CH-110a.2. Discussion of the long and short-term
strategy or plan for managing Scope 1 emissions,
emission reduction targets and goal performance
analysis
RT-CH-120a.1. Emissions of the following pollutants:
(1) NOx (excluding N2O), (2) SOx, (3) volatile organic
compounds (VOCs) and (4) hazardous air pollutants
(HAPs)
RT-CH-130a.1. (1) Total energy consumed, (2)
percentage of electricity from the grid, (3) percentage
of renewables, (4) total self-generated energy
RT-CH-140a.1. (1) Total water withdrawn, (2) total water
consumed, percentage of each in regions with baseline
high or extremely high water stress
34, 57 and 58
56
58
60 and available at https://www.braskem.com.br/material-issues-
assessement
Omission: we were unable to consolidate this data globally for
this cycle and Report. We are commited to improving our global
management of this topic and intend to report on it in our 2021
Report.
Water management
RT-CH-140a.2. Number of non-compliance incidents
associated with licenses, standards and regulations for
water quality
RT-CH-140a.3. Description of water management risks
and discussion of strategies and practices to mitigate
such risks
60
Hazardous Waste
Management
RT-CH-150a.1. Amount of hazardous waste generated
and percentage recycled
Available at www.braskem.com/esgdashboard
SDG
13
13
3, 12
7, 9
6, 9
6
6, 9
12
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 SASB SUMMARY
81
Metrics
Page/ URL
SDG
Topic
Community
Relations
Workers' health and
safety
Safety and
Environmental
Management for
Chemicals
RT-CH-210a.1. Discussion of engagement processes
for managing risks and opportunities associated with
community interests
RT-CH-320a.1. (1) Total recordable incident rate (TRIR)
and (2) fatality rate for (a) direct employees and (b)
outsourced employees
RT-CH-320a.2. Description of efforts to assess,
monitor and reduce the exposure of employees and
contracted workers to health issues (chronic disease)
RT-CH-410b.1 (1) Percentage of products that contain
the Harmonized System of Classification and Labeling
of Chemicals (GHS) Category 1 and 2 Hazardous
Substances for Health and Environment, (2)
percentage of such products that have been subjected
to risk assessment1)
RT-CH-410b.2 - Discussion of strategy to (1) manage
chemicals of concern and (2) develop alternatives with
reduced human and/or environmental impact
Genetically
Modified Organisms
RT-CH-410c.1 - Percentage of products by revenue
that contain genetically modified organisms (GMOs)
Management of the
Legal & Regulatory
Environment
RT-CH-530a.1 - Discussion of corporate positions
related to government regulations and/or policy
proposals that address environmental and
social factors affecting the industry
Operational
safety, emergency
preparedness and
response
RT-CH-540a.1. Process Security Incident Count (PSIC),
Total Process Security Incident Rate (PSTIR) and
Security Incident Severity Rate for the Process (PSISR) 4
RT-CH-540a.2. Number of transport-related incidents
managing risks and opportunities associated with
community interests
50
49
49
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
21
Available at www.braskem.com/esgdashboard
Available at www.braskem.com/esgdashboard
Production
RT-CH-000.A - Production by reportable segment
38
8
8
12
12
12
8
8
8
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 82
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 83
MATERIAL TOPICSGRI SUMMARYSASB SUMMARYINTEGRATED REPORT 2020 Credits
Braskem
Carolina Rodrigues Pignata
Gabriela Linhares Bacarin
Isabela Basso
Vittoria Pìcarelli
rpt sustentabilidade
Content: Sarah Fernandes
Project management: Ricardo Duarte
Graphic design and layout: Sergio Almeida
GRI Consultant: Adriana Couto
English Version
Doris Buchmann
Images
Brand Center Braskem
Gettyy Images
Audit
KPMG GRI 102-56