Braskem S.A.
Annual Report 2021

Plain-text annual report

Integrated Report Annual Sustainability -ESG Report ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION CONTENTS ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS EARTH CHARTER CERTIFICATIONS AND AWARDS MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-1, 102-5, 102-45, 102-48, 102-49, 102-50, 102-51, 102-52, 102-54, 102-56] ABOUT THIS REPORT Braskem Idesa S.A.P.I (Investment Promotion Corporation) and Braskem Idesa Servicios S.A de C.V have drafted their annual Sustainability Report, which outlines the results, performance, initiatives, commitments, achievements and challenges of the period comprising January 1 to December 31, 2021. — 4 — — 5 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-10, 102-45, 102-48, 102-49, 102-51, 102-52, 102-54, 102-56] — 6 — This year, we saw significant developments in our operations thanks to continuous production throughout the year, substituting Natural Gas for ethane to help ensure the continuity of our processes. We also started building our new Ethane Terminal, which will provide the raw materials we require to operate. In financial and environmental terms, we refinanced our entire Project Finance debt structure, helping to achieve our zero-emission goal by 2050. In compliance with reporting methodology, we declare that “this report has been prepared in accordance with the GRI Standards: Core option stipulated by the Global Reporting Initiative (GRI)”. Furthermore, there were no modifications to the information, which has been verified by an external party. In addition to our sustainability strategy and vision, we are working on a new materiality to update material issues, which we will present in our next report. — 7 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-14, 102-15] LETTER FROM THE CEO THE CEO 2021 was a year of numerous achievements and challenges for Braskem Idesa, and we accomplished outstanding results by acting accordingly with a framework of transparency, ethics and integrity at all levels within the company and with all our stakeholders. We maintained operations at our industrial complex As a result of this situation, in 2021 we reopened and our businesses despite the COVID-19 pandemic, focusing especially on driving a strong connection with discussions with the Mexican government and with PEMEX, leading to an addendum to the ethane supply — 8 — our stakeholders – Team Members, investors, clients, contract we signed in 2010 that includes new supply suppliers and communities – rolling out on-going conditions that benefit both parties. This agreement communication efforts and prioritizing their physical also resulted in PEMEX and other government agencies and emotional health through the implementation committing to the construction of a permanent of numerous prevention measures, such as remote ethane import terminal, representing an investment of working and the development and creation of value USD $400 million, which will allow us to drive efficiency propositions for our professionals who have shown and guarantee sufficient ethane supply to operate high levels of resilience and commitment. our plant at 100% of its capacity, increase availability, Furthermore, one of our non-negotiable values is the market in Mexico, which is a structural part of our long- and drive our competitiveness within the polyethylene safety of our operations and people, having achieved term business. positive results this year once again, on a par with the best petrochemical companies in the world. Furthermore, and thanks to this long-term agreement to supply ethane as a raw material, we were able to issue In terms of operations at our complex, one major pillar a USD $1.2-billion bond on the international capital of our business is the access to raw materials (ethane markets, which, in addition to the bond we issued in gas), and this year we reached two milestones: firstly, 2019, has allowed Braskem Idesa to restructure its our Fast Track project, which began operating last capital and free up resources to drive the company’s year at the Integrated Port Administration (API) in growth through investments, the terminal project, and Coatzacoalcos, has enabled us to import ethane to sustainability projects, which are of key importance help increase our access to raw materials; secondly, over the coming years. This bond was issued, in line with during 2020, we experienced a unilateral interruption our sustainability vision and commitment, through a in natural gas supplies, which led us to implement a Sustainability Linked Bond (SLB) that represents our strategy to resume operations and mitigate the effects commitment to reducing Scope 1 and 2 Greenhouse on the value chain. Gas (GHG) emissions by 15% by 2028, helping to drive our strategy, which began in 2021, through projects and actions to help fulfil our commitment. — 9 — Stefan Lepecki CEO- Braskem Idesa Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-14, 102-15] In terms of sustainability, we are governed by our Global During 2021, we maintained our social license to Sustainable Development Policy, which is based on the operate by driving harmonious, transparent and clear United Nations Sustainable Development Goals (SDG), communication and interaction with the communities and in the understanding that economic challenges, located within our complex’s area of social influence. the scarcity of natural resources, and climate change We achieved this through a range of community require urgent action and adaptation. This is why our engagement programs that focus on creating jobs, sustainability strategy is based on 7 macro-objectives developing the local economy, and ensuring the health (Health and Safety, Economic and Financial Results, and safety of people within the community. Plastic Waste, Operational Eco-Efficiency, Climate Change, Social Responsibility, and Human Rights and For all of us at Braskem Idesa, it is of the utmost Sustainable Innovation). I would like to emphasize the importance that we continue developing our human advances that we have made in the Circular Economy capital and promoting issues such as diversity, through the development of sustainable solutions for our clients, including Post-Consumer Recycled inclusion, ethics and environmental conservation, all of which play a major role in our business and in the world. — 10 — (PCR) polyethylene, our Emissions Reduction Plan, social management, and our commitment to the As a company, we are extremely proud of our communities within our areas of influence. achievements and contributions, and we are fully aware In terms of the Circular Economy, we saw a major shift to becoming an even more sustainable company in the production and sale of PCR resin, and we created a that is underpinned by a strong culture of ethics and joint venture through a Memorandum of Understanding corporate governance in order to continue creating that there is still work to be done. We are committed (MOU) with the Mexican recycling company Alcamare. value for all our stakeholders. This joint venture is the combination of our experience in business, technology and logistics and their In conclusion, I would like to thank our shareholders, experience in the field of collection and recycling, the clients and suppliers for the trust they have placed in result of which has been a three-fold increase in the us, and, above all, I would like to thank our team for their production and sale of this product compared to 2020. professionalism, commitment and passion, which has We have focused on the Mexican market, and we also allowed us to continue positioning ourselves as a global export to Central America and the United States. benchmark. We are also involved in on-going projects with our value chain through partnerships, technology generation, innovation, and the development of collaborative projects to promote education surrounding recycling and responsible consumption. We also lobby for adequate legislation, highlighting how plastics improve people’s lives and reaffirming how this change cannot be brought about alone. Stefan Lepecki CEO- Braskem Idesa — 11 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION — 12 — CORPORATE PROFILE — 13 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-16] Principles [102-16] Values We are committed to conducting our business and engaging with our stakeholders within a framework of ethics, integrity and transparency that is underpinned by our principles and values: • Integrity: We ensure that ethical integrity is the foundation of the corporate governance systems regarding the company’s internal and external relations. Our values are the pillars of Braskem Idesa’s organizational structure, and they underpin the way in which we develop quality processes and policies that help ensure the company operates correctly: • Trust in People and in their capacity and desire to prosper. • Transparency: We provide transparent information and promote free, accurate and effective communication. • Customer Satisfaction, focusing on quality, productivity and environmental and social responsibility. • Ethics: We act based on a framework of standards that are legal, statutory or regulatory in nature. • Returns for shareholders and the valuation of their assets. • Continuity: We closely monitor our operations and ensure compliance in all areas. • Responsibility: We help the Board of Directors ensure the sustainability of the company by incorporating a wide-ranging business strategy that encompasses sustainable development principles. — 14 — • Equality: We treat our stakeholders in a fair and equitable manner. • Collaboration between those who participate in the design and implementation of the company’s operations, in addition to its business results. • Employee Self-Development, mainly through workplace education, driving the growth and sustainability of the organization. • Reinvestment to create new employment opportunities and contribute to community development. — 15 — ALL OUR OPERATIONS and engagement activities are undertaken within a framework of integrity, ethics and transparency. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-2, 102-4, 102-6, 102-7] Operations Map We have a team comprising 939 Team Members who, thanks to their talent and energy, help increase our company’s production capacity and ensure that our products reach an ever-growing number of markets. Our products are made in Mexico and exported to Latin America, Europe and Asia, including to countries such as: Belgium, Brazil, Chile, China, Colombia, Costa Rica, Ecuador, El Salvador, Spain, the United States, Guatemala, Haiti, Honduras, England, Italy, Mexico, Nicaragua, Peru, Portugal, Puerto Rico, the Dominican Republic, Trinidad and Tobago, Uruguay, and Venezuela. 4 industrial plants in Nanchital, Veracruz Mexico. ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-2, 102-4, 102-6, 102-7] Exports to more than 25 countries. — 17 — — 16 — 939 Team Members. Production capacity of more than 1.05 million tons of polyethylene/year Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-2, 102-6] [102-2, 102-6] Market Segments and Products During 2021, we produced 696,000 tons of polyethylene as a result of an increased supply of domestic ethane and the solid performance of our Fast-Track Project, in addition to the reliability of the human capital at our cracker, our two High-Density Polyethylene plants, and our Low-Density Polyethylene plant at our petrochemical complex, located in the municipality of Nanchital de Lázaro Cárdenas del Río in the state of Veracruz. FLEXIBLE PLASTICS We offer resins to meet the needs of numerous sectors, including agro-industrial applications, geomembranes, and films and foams for numerous applications, including: • High Molecular Weight Film used mostly in the shopping bag and bag roll market. • Low-Density Polyethylene, which can be used in a wide variety of applications, from Furthermore, and fully aware of the role we play within the value chain, we are constantly driving innovation in order simple films to multi-layer and laminated films. to develop and improve High-Density Polyethylene (HDPE), Low-Density Polyethylene (LDPE), Polypropylene (PP) • Thermo-Shrink Film with three grades of low-density polyethylene for the production of distribution, and sustainable solutions that promote the Circular Economy, including Post-Consumer Resin (PCR) thermo-shrink films. Polyethylene, in order to meet the requirements of the range of market segments we serve. — 18 — RIGID PLASTICS Used in end injection molding applications, such as: toys, lids, containers, household items, INJECTION buckets, tables, boxes and thin-walled containers, among others. You can find our Injection Catalog by clicking on the following link: https://www.braskemidesa.com.mx/Idesa/catalogos?key=235 PIPES • Certified pressure pipes. • Conduit (protection and conduction for electrical/telecommunications cables). • Corrugated pipes (storm drainage, wastewater and sewage systems). • Energy systems (natural gas, LPG, propane). • Local and industrial (potable water, mining, industrial-chemical). You can find our Pipes Catalog by clicking on the following link: https://www.braskemidesa.com.mx/Idesa/catalogos?key=238 We offer small- and large-volume blow-molded materials with a comprehensive portfolio of unimodal and bimodal packaging for products ranging from 0.2 to 1,000 liters. Our resins offer the perfect balance between processing and mechanical properties in order to meet the needs of our clients. They are used in the manufacturing of: • Containers for food and beverages (dairy, juice, etc.). • Containers for industrial chemicals and cleaners (detergents, bleaches, softeners, etc.). • Containers for healthcare and personal care products (medication, shampoos, BLOW- MOLDED conditioners, etc.). • Containers for agrochemicals (fertilizers, herbicides, pesticides, etc.). You can find our Blow-Molded Catalog by clicking on the following link: https://www.braskemidesa.com.mx/Idesa/catalogos?key=237 FILM • Medium-resistant film for the packaging of numerous products, in addition to the outer films of diapers. • HDPE and LDPE mixes for extrusion, bags and sacks, bottles for consumer goods, agricultural film and greenhouse sheeting, industrial film, thermo-shrink film and blown film. • Low molecular weight LDPE for industrial bags, thermo-shrink agricultural films, pipes and hoses. • Special films for the production of highly resistant geomembranes for a wide range of chemical products, offering long-life and high-rigidity and transparent films. — 19 — You can find our Film Catalog by clicking on the following link: https://www.braskemidesa.com.mx/Idesa/catalogos?key=236 POLYPROPYLENE • product portfolio. • We have production plants in numerous geographical locations. You can find our Polypropylene Catalog by clicking on the following link: https://www.braskemidesa.com.mx/Idesa/catalogos?key=234 POST-CONSUMER RECYCLED POLYETHYLENE RESIN (PCR) • High-quality Post-Consumer Recycled Polyethylene Resin (PCR) that offers superior quality for high- performance process control, in addition to generating environmental and social value (aimed at packing and packaging applications). • Collection of post-consumer materials through strategic alliances with leading recyclers in Mexico. • Resin made in Mexico. You can find our Catalog by clicking on the following link: https://www.braskemidesa.com.mx/Idesa/catalogos?key=80 Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-2, 102-6] [102-2, 102-6, 102-7] We offer innovation solutions that serve different market segments within the industry and meet the expectations In 2021, domestic sales represented 62% of total sales for the year. We achieved this by prioritizing sales of our clients, ensuring we offer them the highest quality service by driving innovation and development within our to strategic local clients. product portfolio. 2% 1% 2% 5% 5% 28% SEGMENTS AND MARKETS WE SERVE 7% 8% 22% 20% — 20 — Cosmetics and Pharmaceutical Agriculture Others Chemical Hygiene and Cleaning Construction and Infrastructure Industrial Packing and Packaging Distributors Bags and Films 8% 15% 15% 62% Europe United States Latinamerica* Mexico *Central America, the Caribbean and South America We consolidated our complementary Polypropylene (PP) and Post-Consumer Polyethylene Resin (PCR) operations. The sales volume for PP remained stable in a year-on-year comparison, reaching 11,000 tons, while the sales volume for PCR increased significantly by 174%, reaching 8,000 tons. — 21 — OUR COMMITMENT is to offer our clients solutions through sustainable products in order to help them transition to a Circular Economy. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-9] — 22 — Value Chain In keeping with our sustainability strategy, we drive economic, social and environmental development in the region surrounding our petrochemical complex, located in Nanchital in the state of Veracruz, Mexico. This region plays a key role in rail, port and land transport options that combine to create an integrated network that meets the needs of our clients. This location and the strategies we have implemented allow us to deliver our products to clients in any part of the country in an average of 72 hours thanks to our 1,530 train cars and our logistics platform’s rail terminal, which has a capacity for more than 400 hopper cars and 30 tank cars for chemical products, all of which are connected to the main rail concession in Mexico. Furthermore, both innovation and the technology play a key role in our complex, which is one of the most modern of its kind in the world. We have 21 silos with a capacity of 500 tons each, which are connected via three bottling lines. We also have a 215,000-square-foot warehouse and a 300,000-square-foot open-air yard with a capacity to store more than 36,000 tons of — 23 — polyethylene. 40% of our total sales are made through 5 logistics operators. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-40, 102-42, 102-43, 102-44] Stakeholders Stakeholder engagement plays a fundamental role in helping us fulfil the commitments we have made to each of our stakeholder groups, in addition to promoting open and transparent communication to better understand their expectations, coordinating plans of action to help tackle any concerns they have, and understanding our areas of opportunity. Stakeholders Description Expectations Financial organizations and institutions involved in international capital markets, our Project Finance and creditors in general. • Provide transparent and quality information • Ensure that investors and creditors correctly analyze the company’s credit — 24 — Creditors and Investors Communication Channels • Investor Relations Website (IR) • E-mail • IR Mailbox • IR Phoneline • Management Call • Consolidated Financial Statements • Virtual visits to the complex • Ethics Line All of the company’s employees who work to achieve its business goals and whose rights as workers are respected by the company, which promotes their professional development and respects the diversity they offer Braskem Idesa. • Good work environment • Talent attraction and retention • Career development • Workplace diversity and equality • Opportunities for professional growth • Performance recognition • Attractive salaries and benefits • Workplace integration Team Members • E-mail • Newsletters • Braskem Idesa TV • Bulletin board • Quarterly results meeting • Mailboxes • In-house Social Networks (Yammer) • Braskem Idesa View • Virtual visits to the complex • Ethics Line Institutions that advocate the interests of the sector and in which Braskem Idesa engages to drive the best possible social and/or economic impact. • Partnerships to tackle the problems of climate change and environmental conservation • Agreements to promote a sustainable plastic culture • Support to develop public policies underpinned by science • Meetings • Events • Commissions • Working groups • Virtual visits to the complex Associations (Chambers) Stakeholders Description Expectations Companies that acquire Braskem Idesa’s products to make their own and reach their end consumers. Braskem Idesa strives to meet their needs through innovation, technology and the highest levels of quality and service. Those who supply the resources, raw materials and services required for Braskem Idesa’s operations, which is why we treat them fairly and impartially, contributing to our sustainability strategy. Social groups that work alongside Braskem Idesa to drive social development, knowledge, and growth in the communities in which the company operates. Clients Suppliers Organizations and Institutions • Quality and safety • Efficient time management • Price vs. quality • Opportune monitoring and follow-up Innovation and development • • Technical service • Fair trade practices Fair competition • Supply responsibility • Transparent assessment • Partnerships to promote sustainable development ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-40, 102-42, 102-43, 102-44] — 25 — Communication Channels • Satisfaction, reputation and image surveys • Client engagement events • E-mail • Suggestions box • Fairs/Expos • Meetings • Visits • Ethics Line • Braskem Idesa website • Audits • E-mail • Surveys • Ethics Line • Suggestions box • Braskem Idesa website • Meetings • Face-to-face visits • Suggestions box • E-mail • Ethics Line • Braskem Idesa website Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-40, 102-42, 102-43, 102-44] Stakeholders Description Expectations The people on which the company’s operations have an impact or benefit. Braskem Idesa strives to operate responsibly and transparently in its dealings with the community, helping drive its development and contributing to safeguarding its natural resources, in addition to organizing activities that benefit it socially. Community — 26 — • Social support • Contributions to community development • Donations All domestic or international government bodies, whose regulations and auditing processes regulate Braskem Idesa’s operations and processes. Publications that transmit and create informative content for public or private use, and which have an influence on Braskem Idesa’s operations and its surroundings. Authorities Media Outlets • Compliance • Forging of partnerships to drive development • Clear and true information • Relevant information for public analysis • Advertorials • Focus on significant issues Communication Channels • Phone calls • Videoconferencing and Instant Messaging • Suggestions box • E-mail • Community telephone • Semi-annual reports • Open House • • Informative videos Institutional letters and memos • Virtual visits to the complex • Ethics Line • Reputation and image survey • Community meetings and visits • Complaints Procedure (MAQ) • Community engagement events • Community newsletter • Braskem Idesa social networks Institutional meetings Institutional letters • • Joint events • • Ethics Line • Braskem Idesa website • Meetings • Conferences • Interviews • Press seminars • Institutional letters and press releases • Ethics Line • Braksem Idesa website — 27 — Every year, Braskem Idesa takes part in the Global Reputation and Image Survey, which is coordinated by RepTrak®, a specialist consultancy firm. This survey provides crucial information about what the company’s stakeholders think, feel and believe, and it allows us to develop strategies to cement our reputation through a methodology that is based on quantitative and qualitative surveys conducted among our major stakeholder groups: clients, Team Members, communities, society and the financial market. WE BOLSTERED OUR REPUTATION through the RepTrak® Global Reputation and Image Survey. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-7] BRASKEM IDESA IN NUMBERS — 28 — We issued a USD $1.2-billion Sustainability Linked Bond (SLB) on the capital market, which was recognized by Global Capital as the Latin America Operation of the Year. We signed a Memorandum of Understanding with Alcamare to produce PCR resins for food products and applications. ESR® certified for 4 consecutive years now, and we were recognized within the Best Practices category for our programs to tackle COVID-19. Both of these awards are presented by CEMEFI. We began the construction of Terminal Química Puerto México, the permanent terminal for ethane imports at the Integrated Port Administration (API) in Coatzacoalcos. A total investment of almost USD $400 million will be spent on this project. We achieved Operation Clean Sweep Blue certification as a result of our operational excellence and best practices in containing pellets and dust to help protect the environment and safeguard natural resources. — 29 — 939 Team Members in 2021. 100% of our Team Members were trained in the Code of Conduct and Anti- corruption measures +9,000 people directly benefited through our Community Social Management programs. +MXN700,000 invested in ensuring the health and safety of our Team Members. + $16,250 USD invested and more than 1,900 hours in areas covering Diversity, Inclusion and Gender Equity. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION BRASKEM IDESA’S COMMITMENTS • Maintain the best practices of the Operation Clean Sweep Blue program to contain pellets and dust within our industrial areas in order to protect the environment. • The global expansion of the I’m Green™ portfolio through Braskem and Braskem Idesa by 2025, reaching the goal of 300,000 tons of products made from recycled materials. — 30 — ENVIRONMENTAL 15% by 2028. • Reduction in Greenhouse Gas emissions (Scope 1 and 2) of • Global efforts to avoid 1.5 million tons of plastic waste being sent to landfill, for incineration or into the environment by 2030. • Carbon neutrality by 2050. • Consolidation of our Social Management strategy to directly and indirectly benefit communities located within the company’s area of social influence in order to maintain our social license to operate. SOCIAL • Continuation of our Corporate Volunteering programs, playing our role in society as agents of change through alliances with associations and foundations throughout the country in order to drive collaboration and generate shared value, well- being and a positive social impact on communities. • The construction of Terminal Química Puerto México in Coatzacoalcos, Veracruz, which will have a positive effect on the economy in the region and consolidate the competitiveness of the petrochemical industry around the country. • Incentive investments in the Sustainable Economy as part of our ESG strategy in order to ensure the company’s financial health, drive compliance, bolster our corporate governance, and reaffirm our total commitment to transparency for our stakeholders. — 31 — FINANCIAL Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION CORPORATE GOVERNANCE AND COMPLIANCE We are firmly committed to working within an ethical framework and ensuring our stakeholders trust in our business by implementing best practices that underpin our commitment to the transparency and stewardship of our business. — 32 — — 33 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-16] Braskem Idesa Guidelines [102-18] Corporate Governance At Braskem Idesa, we have implemented guidelines that help us ensure compliance at all levels within the organization: Our corporate governance comprises a Board of Directors that is tasked with we prioritize ethics and transparency, ensuring compliance through policies, procedures and mechanisms to foment managing our business. It is composed of 7 independent members, all of whom are good management and help prevent any risks that could impact on our operations. experts in the chemical, petrochemical and plastics industry, and it meets at least Guidelines and Policies Procedures: • Compliance Risk Control Matrix • Donations and Sponsorship Procedure • Restricted Third Party Procedure • Antitrust Procedure • Operational Compliance Procedure • Ethics Line and Investigations Procedure • Disciplinary Measures Procedure. • E-mail collection Instructions • • Gift, Hospitality and Entertainment Procedure • Engagement with Government Officials Interview Instructions Procedure • Third Party Integrity Due Diligence Procedure — 34 — Internal Audit Guidelines • • Internal Control Guidelines • Disciplinary Measure Guidelines • Conflict of Interest Guidelines • Due Diligence Guidelines for Third Parties • Guidelines for Engagement with Government Officials • Global Corporate Risk Management Guidelines • Donations and Sponsorship Guidelines • Gift, Hospitality and Entertainment Guidelines • Travel Expense Guidelines • Global Sales Guidelines • Global Corporate Risk Guidelines • Global Procurement Guidelines • Global Compliance System Policy • Global Quality, HSE and Social Responsibility Policy • Global Personal Data Privacy and Protection Policy • Global Anti-Corruption Policy • Risk Management Policy • Global Sustainable Development Policy • Code of Conduct • Related Parties Policy You can access our Compliance website in order to learn more about our policies, guidelines and procedures: https://www.compliancebraskemidesa.com.mx/ once a quarter. According to the Shareholder Agreement, Braskem can appoint 5 members to our Board and Idesa can appoint 2 members. Furthermore, the chair of our Board of Directors is not an executive at the company and has the same faculties as any other member of the Board. His or her function is to act as a link between the CEO and the Board, which is responsible for managing the company. The majority of the decisions considered by our Board must be passed by a simple majority, and the CEO is the person responsible for implementing the Business Plan and the decisions reached by the Board of Directors, in accordance with the policies, values and principles of the company. Furthermore, our Board members can serve for 2 years, with the possibility of re- election. The longest-serving director was appointed in April 2010, and the most recent director was appointed in January 2021. Our corporate governance model operates within a framework that promotes an ethical, transparent and upright approach to how we treat our stakeholders. Our Board of Directors oversees the following committees: • Compliance Committee: It supervises the activities of the company’s Chief Compliance Officer and provides support in terms of issues regarding our compliance system. The major issues this Committee focuses on deal with ethics, integrity and transparency, the Code of Conduct, the Anti-corruption Policy, and other standards, documents, communications and training in compliance, internal audits, risk management, internal controls, Ethics Line (our reporting channel), and data privacy and protection. — 35 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-18] • Finance and Investment Committee: It reviews the company’s annual budget and annual business plan, finance and investment policies (distributions, debt, insurance, securities, capital investments, etc.), financial results, reports, project and investment analysis, fiscal and financial affairs, and transactions with related parties. • Strategic Operations and Management Committee: It reviews the company’s corporate policies, monitors its operational and industrial policies, appoints and/or substitutes executive directors, evaluates and monitors strategic situations or operations, and reviews and recommends operations with non-financial related parties. • Corporate Image, Communication, People and Organization Committee: It reviews People and Organization Policies and related strategic projects, and it approves and oversees the company’s long-term incentive programs, annual bonuses for Team Members, the compensation budget, brand positioning, the image preservation strategy, and internal and external communication plans. • Sustainability Committee: It supervises and spearheads the company’s Sustainability, Social Responsibility and Circular Economy strategy. All our Committees convene at least once every three months to promote on- going communication, monitor and approve strategies, and drive advances in terms of the fulfilment of the company’s goals and commitments. Furthermore, the company’s Business Plan is approved by the Board of Directors and is implemented by the CEO and his management team. The company’s core values and strategic pillars focus on Environmental, Social and Governance (ESG) issues, which underpin the specific goals the company is focusing on in the short, mid and long term. The Committees of the Board of Directors play a major role in overseeing these activities, and the company, through the Sustainability Committee, coordinates the Circular Economy, Sustainability and Social Responsibility strategy. — 36 — ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-18] Structure of Braskem Idesa’s Board of Directors CEO Finance Director Industrial Director Legal and Corporate Governance Director Chief Compliance Officer Circular Economy, Sustainability and Social Responsibility — 37 — Commercial Director Institutional Marketing, Internal Communication, People and Organization Director Supply Chain Director External Communication, New Business and Institutional Relations Director Ethane Terminal Project Director Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-17, 103-2, 103-3, 205-1] Compliance System [103-2, 103-3] Furthermore, in order to underpin the ethical actions we undertake at Braskem Idesa, we have implemented ten guiding principles that govern how we interact with people inside and outside Braskem Idesa. These principles Our Compliance System is a model that allows us to prevent any risk covering integrity, ethics and transparency also help drive our commitment to being a company that acts in an ethical, honorable and transparent manner: that could have an impact on our company. This system is controlled by the Compliance Committee and the Chief Compliance Officer (CCO), who are, in turn, monitored by the Board of Directors. Our System is based on three pillars and divided into 10 compliance measures. 7 Ethics Line Management 8 Risk and Control Monitoring Involvement in Collective Efforts 6 Third-Party Compliance 5 — 38 — Communication and Training 4 LEADER Risk and Control Assessment 3 Policies and Other Guidelines 2 Compliance and Governance 1 9 Risk Resolution and Consolidation of Control Measures 10 Disciplinary Measures AT BRASKEM IDESA, our risk prevention culture is embodied by all Prevenir our Team Members. 1. Embodying a zero-tolerance policy and combatting corruption in all its forms, including extortion and bribery. 2. Firmly and determinedly saying ‘no’ to business opportunities that are not in keeping with this commitment. 3. Adopting ethical, upright and transparent principles when dealing with representatives from the public and private sectors. 4. Never using cultural or common market conditions to justify improper actions. 5. Guaranteeing that Braskem Idesa operates transparently by regularly providing accurate, wide-ranging and accessible and information. 6. Understanding that unethical conduct, be it as a result of actions, omissions or complacency, damages society, contravenes the law, and damages the image of Braskem Idesa. 7. Guaranteeing that Braskem Idesa and its entire value chain implements the Compliance System, which is always up to date with best practices. 8. Contributing individually and collectively to undertaking any necessary changes to the markets and to our environment to eliminate any actions that incite improper conduct. 9. Incorporating into Employee Action Programs the assessment of their contribution to the Compliance System. 10. Understanding that this commitment will help drive Survival, Growth and Continuity. — 39 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 205-2] Code of Conduct Code of Conduct for Third Parties Reporting Mechanisms [102-17, 103-2, 103-3, 205-2] Establishing a Code of Conduct allows us to encompass We are aware that Braskem Idesa’s commercial At Braksem Idesa, our ethical management practices are guaranteed through our principles and values in order guide the ethical relationships are a fundamental part of our business, a range of mechanisms that Team Members and people outside the company conduct of the company. Its purpose is to align our Team which is why we offer the very best experiences to all our can use to communicate any concerns, complaints, suggestions or reports they Members and the rest of the value chain with our ethical clients, suppliers, distributors, agents, intermediaries, may have. In the event of actions that contravene our ethical principles, we have created channels through which these can be reported and monitored. Braskem Idesa’s Communication Channels for Receiving Reports Suggestion boxes located in offices and communities surrounding Braskem Idesa. Ethics Line: a toll-free number (800 681 6940) that is available 24 hours a day, 7 days a week. Messages sent via the company’s website: www.lineadeeticabraskemidesa.com — 41 — Complaints Procedure (MAQ) guidelines and principles. supply chain partners, consultants and the other third parties with whom we coordinate services and It is of the utmost importance for the company that each activities. Above all, we ensure that we interact with Member of our team fully understands the guidelines those parties who share our ethical principles and who we have in place, which is why, upon joining the Braskem act ethically when offering services to and on behalf of Idesa team, all our Team Members receive training in Braskem Idesa. this area during their induction process to ensure that they can act in accordance with our Code of Conduct, in Within our ethics strategy, risk prevention is a addition to committing to follow it by signing it. An annual fundamental pillar, which is why we offer our service reinforcement capacitation in our Code of Conduct is providers, commercial partners and distributors given to all our Team Members. training in the Code of Conduct for Third Parties, which is provided when they sign their contract. — 40 — THE CODE OF Prevenir Conduct for Third Parties outlines the commitment of both parties to act ethically while providing services and within our commercial relationships. 100% of our Team Members received Code of Conduct and Anti- Corruption training, reaffirming our commitment every year. Our Code of Conduct has a section focusing on Harassment and Discrimination, which is aligned with the United Nation’s Human Rights Principles, and it contains strict guidelines regarding how Team Members of Braskem Idesa must interact among themselves and with third parties. The success and consolidation of our ethics strategy would not be possible without the commitment made by our Team Members to act within a framework of ethics, integrity and transparency. You can review Braskem Idesa’s Code of Conduct by clicking on the following link: https://www.compliancebraskemidesa. com.mx/principios-y-valores.php#codigo-de-conducta You can review Braskem Idesa’s Code of Conduct for Third Parties by clicking on the following link: https://www. compliancebraskemidesa.com.mx/principios-y-valores. php#codigo-de-conducta-de-terceros Risk Assessment Methodology. IN 2021 Prevenir Braskem Idesa did not receive any complaints relating to discrimination or any other ethical issue. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 205-2, 205-1] Ethics Training Risk Assessment Methodology Ethical issues are extremely relevant for us, not only in At Braskem Idesa, we have a methodology in place to terms of legal compliance, but also given the fact that assess risks, including those relating to the prevention they play an intrinsic role in our organizational culture. of corruption in our dealings with clients, suppliers, This is why we keep our Team Members up to date with public officials, society and our areas of influence policies and procedures, in addition to offering them within the community. This methodology is based on face training in Anti-Corruption. a model that is divided it into two stages and five steps to help anticipate and prevent risks at a corporate and We are convinced that these issues should not only be operational level. dealt with internally but also externally, which is why we include our Value Chain in our Ethics, Human Rights and Anti-Corruption training programs, helping consolidate our relationships with them and highlighting the key role they play in the company’s operations. — 42 — We offer Code of Conduct capacitation, Anti- Corruption programs, and information about any changes to our policies and procedures. [103-2, 103-3, 205-1] Below, is a description of the stages and steps of our risk prevention methodology: D N A N O I T A C N U M M O C I N O I T A T L U S N O C CONTEXT ESTABLISHMENT IDENTIFICATION ANALYSIS AND ASSESSMENT PRIORITIZATION HANDLING A N A L Y S I S I M O N I T O R N G A N D C R I T I C A L — 43 — WE ARE WORKING ON BECOMING ISO 370001-certified in Anti- Bribery Management Systems during 2022. Braskem Idesa 2021 Sustainability Report ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 205-1] [102-13, 103-2, 103-3] Below, is a description of the stages and steps of our risk prevention methodology: CONTEXT We define Braskem Idesa’s business and compliance goals, in addition to possible future events that could affect the organization’s critical goals (production and inventory problems, etc.). IDENTIFICATION We identify, assess and validate any possible risks based on internal and external data, in order to add an entry to Braskem Idesa’s Risk Dictionary. — 44 — ANALYSIS AND ASSESSMENT We analyze the risks identified in order to assess their probability and impact, creating a final risk assessment and suggesting possible scenarios. PRIORITIZATION We prioritize the risks and scenarios identified to define responsibilities and risk levels. HANDLING We implement a Risk Handling plan, including actions to manage risks, create contingency plans, and assign responsibilities for the supervision and development of each risk. MONITORING AND COMMUNICATION We develop a reporting process to monitor the Risk Plans and Risk Handling Plans by the parties involved, Senior Management, and the Board of Directors. We also define Key Risk Indicators (KRI). Presence in Industry Associations in Mexico We are focused on driving development, growth and innovation within the plastic industry by collaborating with a number of private-sector associations to promote sustainable development and competition within the chemical and petrochemical industry, in addition to fomenting best practices in the areas of transparency and fair competition. In order to achieve these goals, we are active partners in the following chambers and associations: • Mexican Association of the Chemical Industry • Coatzacoalcos Local Mutual Help (ANIQ). Committee (CLAM) • Mexican Association of the Plastics Industry (ANIPAC). • Mexico-Brazil (CEBRAMEX). Business Council • Mexican Association of Intermodal Transport • Mexico-Brazil Chamber of Commerce (AMTI). (BRAMEX) • Mexican Association of the Plastic Bag Industry • Mexican Institute of Chemical Engineers (INBOPLAST). (IMIQ) — 45 — • Latin American Petrochemical and Chemical • Engineering Piping Industries (ITIAC). Association (APLA). • Normalization and Certification (NYCE). • Industrial Association of the State of Veracruz (AIEVAC). • Mexico-Brazil (CAMEBRA) Chamber of Commerce • National Chamber of the Manufacturing Industry – Veracruz Chapter (CANACINTRA VERACRUZ). • ANIQ Plastic Industry Commission on Responsibility and Sustainable Development (CIPRES). • Business Coordinating Council (CCE). • CCE’s Center for Studies of the Private Sector for Sustainable Development (CESPEDES). Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION FINANCIAL PERFORMANCE — 46 — — 47 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-7, 201-2] LETTER FROM THE CHIEF FINANCIAL OFFICER FINANCIAL OFFICER 2021 began as a challenging year for Braskem Idesa as a result of the effects of the COVID-19 pandemic, which led to an historic reduction in polyethylene prices, political uncertainty surrounding ethane supplies, and unilateral interruption of natural gas supplies that impeded operations at our complex. — 48 — In light of this outlook, the Braskem Idesa team worked offering the market innovative solutions that are together to roll out measures to mitigate the impacts aligned with our Circular Economy commitments. As of these challenges. We expanded and streamlined our part of these commitments, we issued a sustainable ethane import solution (Fast-Track) meeting more than bond totaling USD $1.2 billion, which, to date, makes 40% of Braskem Idesa’s requirements. We successfully it the largest private bond in Latin America. This reached a definitive agreement with PEMEX, allowing enabled us to refinance the full amount of the original us to resume natural gas and ethane supplies in the project financing. This sustainable bond is tied to our long term. We signed a support agreement with the commitment to reducing Greenhouse Gases and government to develop an Ethane Import Terminal, a complements our ESG strategy. project that will guarantee 100% of Braskem Idesa’s ethane procurement requirements. We remain committed to developing alternative sources of raw materials and greater operational efficiency by We increased our asset utilization ratio from 58% creating solutions and incentivizing investments in the at the beginning of the year to 81%. We fulfilled sales Sustainable Economy. Meanwhile, we are reaffirming for more than 250 clients from different countries our commitment to the company’s financial health, thanks to the flexibility of our logistics operations. We compliance, corporate governance, and our overall tripled sales of Post-Consumer Recycled Resin (PCR), commitment to transparency with our stakeholders. — 49 — Danilo Dias Garcez CFO- Braskem Idesa Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 201-1] Financial Results In keeping with our sustainability strategy and macro goal 2, we believe it is of fundamental importance that we report our financial performance and results by publishing our financial statements, in strict compliance with regulations issued by the Mexican tax authorities, SOX requirements, and the guidelines published by the Organization for Economic Cooperation and Development (OECD). Investment and Financial Results 2021 was a challenging year for businesses in Mexico; however, at Braskem Idesa, we can proudly say that we overcame this adversity thanks to the support and trust of our stakeholders in each of our operations. Overall, this meant that the organization’s financial performance improved. — 50 — WE PUBLISH Prevenir financial statements every quarter and ESG sustainability reports every year, all of which can be found in the Investor Relations section of the Braskem Idesa website. WE DEVELOPED measures aimed at improving our results in order to create value for our Team Members, shareholders, clients, suppliers and the communities with which we interact. Financial Management We are aware of the importance of proper financial management, which is why we have a number of measures in place to assess our financial results and advances. During 2021, we focused on the following elements: • Monthly Results Reports for the Board of Directors • Results Reports for Investors • Financial Statement Audits • Monitoring of Business Plan and Trends • Annual Financial Risk Assessment • Increase in Credit Rating by Fitch Ratings 2020 (USD) 2021 (USD) 773,306 1,205,497 707,971 829,088 65,335 376,409 Direct Economic Value Generated Economic Value Distributed Economic Value Retained i. Direct Economic Value Generated: revenue. ii. Economic Value Distributed: operating costs, employee benefits and salaries, payments to capital providers, payments to governments (by country), and community investments. iii. Economic Value Retained: Direct Economic Value Generated minus Economic Value Distributed. In light of the challenges that continued into 2021 as a result of the COVID-19 pandemic, we successfully ensured the continuity of our operations in order to offer our clients the solutions they need, in addition to bolstering the Mexican economy. Operating results for 2021 were driven by record polyethylene prices stemming from disruption to the global supply chain and the logistical issues experienced throughout the year, in addition to greater-than-expected demand and economic recovery from the initial effects of COVID-19 in 2020. GENERAL FINANCIAL OVERVIEW (USD $ Millions) Net Revenue COGS (Cost of Goods Sold) Gross Profit Gross Margin SG&A Other Operating Income (Expenses) EBITDA Operating EBITDA Margin* 2020 773 (597) 176 3% (85) (68) 295 30% 2021 1,205 (632) 574 48% (87) (2) 621 52% *This does not take into consideration deliver-or-pay provisions for raw material contracts. • In 2021, our net revenue totaled USD $1.205 billion. [102-7] • EBITDA increased to USD $621 million, 111% more than in 2020, thanks to increased global polyethylene prices. • Revenue increased by 56% compared to 2020, thanks to unprecedented market conditions and record prices. • COGS increased as a result of the rise in international benchmark prices for ethane and natural gas, the increased consumption of imported ethane, and the use of ethane as a fuel source at the beginning of the year. — 51 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION These principles are coordinated by the International Capital Market Association (ICMA) through voluntary process guidelines that describe the best practices for financial instruments to incorporate ESG results and promote the integrated development of sustainability-linked bonds on the market in order to the focus of issuing an SLB. Sustainability Linked Bond Commitment Sustainability Performance Target: 15% in absolute GHG Scope 1 and 2 emissions (ktCO2e) by the end of 2028 compared to the 2017 base line. SDG Alignment: This KPI is directly related to UN Goal 13 – Climate Action. — 53 — 7% Other variable cost 6% Sales freight 9% Fixed cost 2% Energy 11% Natural gas 21% Depreciation/ amortization COGS 2021 — 52 — To view Braskem Idesa’s financial information for 2021, please click on the following link: http://inversionistasbraskemidesa. com.mx/informacion.html#menu2 Capital Market Bond Issue In 2021, we successfully refinanced our Project Finance debt by issuing a Sustainability Linked Bond (SLB) on the capital market for a total of USD $1.2 billion, recognized by Global Capital as the Latin America Operation of the Year, and a term loan of USD $150 million. This bond will be paid in a period of 10 years at an annual fixed rate of 6.99%, and it is linked to our commitment to sustainability. The total order book stands at 3.9 times the amount requested by Braskem Idesa, and more than 240 investors have voiced their interest. Acknowledging the role that sustainable finances play in driving the transition to a low-carbon economy and the more efficient use of resources, we decided to issue the Sustainability Linked Bond (SLB) to link our financing strategy and sustainability strategy. 44%Ethane* *Pemex US$27.6MM retroactive adjustment recorded during 3Q21 inlcuded in the "Ethane" portion of the graph, Braskem Idesa considers the revaluation of assets under the Depreciation and Amortization segment. Braskem Idesa’s SLB is aligned with the 5 core components of the Sustainability Linked Bond Principles (SLBP): • Selection of Key Performance Indicators (KPI’s). • Calibration of Sustainability Performance Targets (SPT’s). • Bond Characteristics. • Reporting. • Verification. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-10] Ethane Terminal Project – Terminal Química Puerto México Stemming from an agreement with PEMEX reached in 2021, Braskem Idesa Furthermore, Terminal Química Puerto México (TQPM) has undertaken a Social Impact Assessment (SIA), which identified the social and economic began building a permanent terminal to receive ethane imports at the Integrated benefits of the construction of the terminal, which will begin operating in Port Administration (API) in Coatzacoalcos, Veracruz, with an investment of 2024: approximately USD $400 million. This terminal will play a major role in the operations of our petrochemical complex and for the region of Coatzacoalcos given that it will drive the independence of the complex’s operations and provide full availability of raw materials, leading to a rise in our production capacity of between 14% and 20%, an increase from 66,000 to 80,000 barrels per day (BPD) of ethane. • Local economic spillover and investment. • Job creation during both the construction and subsequent operations. Terminal Química Puerto México (TQPM) will drive positive economic results within the region, as a result of: • Promotion of the Interoceanic Corridor project. — 54 — 1. New investments in the area and the subsequent economic spillover. 2. Increase in revenue at the Integrated Port Administration (API) in Coatzacoalcos as a result of increased freight flow. 3. Creation of new logistics chains. 4. Competition within the region. 5. Positive influence stemming from the creation of new jobs. 6. Consolidation of the competitiveness of the domestic petrochemical industry. 7. 8. Improvements to regional logistics infrastructure. Increased polyethylene production in Mexico and the substitution of imports, leading to a positive impact on trade balance. 9. Comprehensive solution to cover deficits in the amount of ethane required to fully meet domestic demand and increase the production of ethane/ethylene derivatives. • Training workshops for the general public in areas including: business, in construction, customer service, security, and civil protection conjunction with local and state authorities, in addition to the implementation of training sessions for micro start-ups. Furthermore, the ethane terminal project has an Environmental Impact Assessment (MIA) and an Environmental Risk Assessment (ERA) in order to guarantee that the potential environmental impacts identified can be prevented or reduced through the implementation of mitigation measures, pursuant to Article 30 of the Ecological Balance and Environmental Conservation Act, which creates environmental programs, including: flora and fauna rescue programs, integrated waste management programs, and environmental education and awareness programs. TERMINAL QUÍMICA Puerto Mexico will begin ethane Prevenir import operations in 2024. — 55 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11] ENVIRONMENTAL PERFORMANCE We are strongly committed to the environment, and we drive the development of sustainable solutions that help safeguard natural resources, promote biodiversity, and combat climate change. — 56 — — 57 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11] Environmental Risk Matrix [102-11, 103-2, 103-3, 303-1, 303-2, 303-3, 303-4, 303-5] Water Efficiency Our environmental actions are underpinned, governed and assessed through guidelines that enable us to prevent risks and ensure the quality of the programs and measures that we are currently developing: 1. Global Sustainable Development Policy. 2. EHS, Quality and Social Responsibility Policy. 3. Environmental Risk Matrix 4. Efficient Cogeneration Certification. 5. Comprehensive Responsibility Certification (SARI). 6. Emissions Trading System Program In order to efficiently management prevention measures, we have an Environmental Risk Matrix that we use as a tool to identify potential risks in the area of climate change. — 58 — 1.1 Internal Environment 1.2 Climate Outlook 3.3 Communication 3.2 Validation of Adjust- ments 3.1 Actions and Monitoring 1.3 Risks and Opportu- nities 2.1 Adaptation Opportu- nities 2.3 Agreements, Partnerships and Resources 2.2 Adaptation Options At Braskem Idesa, we recognize the importance of promoting water conservation measures to protect • We monitor the effluent discharges and ensure we comply with the control parameters set for this resource for future generations, which is why we each quarter. have developed protocols and projects that focus on improving water management in our operations • In addition to the environmental monitoring of our operations and as part of our commitment Our production process requires water, which is to environmental conservation within our area of used in steam generation, refrigeration systems, social influence, our Participative Environmental manufacturing processes and effluence disposal. Monitoring (MAP) community program, we Every single day, we strive to improve our water sample water from 6 underground wells located in efficiency strategy, the goal of which is to diversify the the communities of Lázaro Cárdenas, Nahualapa sources from which we get our water and reuse within the services at our complex. Some of the measures and Pollo de Oro (found on the Nanchital, Tepeyac and Gopalapa Rivers), which are located around contemplated within this strategy include: the complex. — 59 — WE STREAMLINE WATER USE through water treatment projects, which have helped reduce the amount of water we use by 4% during 2021. • Prior to building the complex, we undertook a number of studies to determine the water basins within the area, guaranteeing natural run-offs and identifying 6 rainwater discharges around the complex and 1 treated water discharge that empties into the Gopalapa River. • We undertake the biannual monitoring of groundwater and surface water within the communities surrounding our operations. • We guarantee our water discharges comply with the 2018 Coatzacoalcos River Declaration, implementing a wastewater discharge system that ensures the river’s capacity is not exceeded, in addition to permitting natural degradation and the recovery of this body of water. • We extract surface water from the Uxpanapa River, which is transported from the dam to our petrochemical plant through our pumping plant. We clarify the water for its subsequent distribution and use, mainly to replace cooling water or to generate steam. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11, 103-2, 103-3, 303-1, 303-2, 303-3, 303-4, 303-5] Total Water Use Wastewater Recycled Water Percentage of Water Recycled 8,667,077 m³ 1,425,950 m³ 1,578,544 m³ 18.21% 8,374,405 m³ 1,098,580 m³ 914,281 m³ 10.89% 2020 2021 [102-11, 103-2, 103-3, 302-1, 302-3, 302-4] Energy Our commitment to the environment can be clearly seen in the ongoing improvements to and reduction in the energy used in our production processes. Our petrochemical complex has a natural gas cogeneration plant that supplies energy to all production areas, and we also have 13 electrical substations and 5.5 km of electrical lines with a capacity of 150 MW that are connected to the Federal Electricity Commission’s (CFE) grid. During 2021, we discharged 1,098,580 m3 of water into the Gopalapa River, all of which was processed at our wastewater treatment plant (WWTP) to guarantee the discharged water undergoes a high- level disinfection process and ensure the lowest possible number of — 60 — We have also developed rigorous analysis and measurement processes through external laboratories that have been approved by numerous environmental agencies, including the Mexican Accreditation Agency (EMA), the National Water Commission (CONAGUA) and the Environmental Protection Agency (PROFEPA). WE HAVE COMPULSORY QUALITY control indicators in place for our water coloring, clarification and filtration processes to prevent any possible impact on the environment. Below are the energy results we achieved in 2021: Energy Efficiency Electricity Used Electricity Sold Intensity Ratio* 2020 2021 659,178 MWh 147,050 MWh 624,607 MWh 50,909 MWh** 14 GJ 14 GJ * The energy intensity ratio is calculated per ton of production, taking into account a total of 250 tons of polyethylene and ethylene per hour. ** The reduction in energy sold is the result of its final sales price. During 2022, we will continue developing programs to reduce the energy used at our industrial plants and ensure optimal ethylene and polyethylene production. Fuel Use Diesel Gasoline LP Gas Natural Gas 2020 313,294 L 187,888 L 199,192 L 15,690,361 GJ 2021* 220, 724 L 187, 887 L 108, 236 L 13,879,734 GJ — 61 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11, 302-1, 302-3, 302-4] Below are the justifications for the increases and decreases in fuel use compared to the previous year: • Diesel: Decreased use of internal employee • Natural Gas: Decreased production and closure of transport (van transportation was substituted by complex. a bus covering internal routes required by Team Members). • Gasoline: Decreased use of company vehicles. • LP Gas: Decreased movement of finished products using forklifts to transport; streamlined movement of final products to storage. The total energy used at Braskem Idesa is calculated based on measuring the electricity produced within each area as well as based on fuel and electricity utility bills. — 62 — WE ACHIEVED A GENERAL reduction in our fuel use by streamlining our warehouse movements, complex operations and employee transport. AT BRASKEM IDESA we develop projects to help us use and implement renewable energy at our petrochemical complex. [102-11, 103-2, 103-3, 305-1,305-2] Climate Change and Emissions Management In keeping with our sustainability strategy and our Global Sustainable Development Policy, we created Macro Goal 4 - Climate Change, through which we govern our operations in order to remain at the cutting edge of the industry and become a benchmark in measures to counter climate change and its effects. We comply with all regulations issued by the Department of the Environment and Natural Resources (SEMARNAT) and the Department of Energy (SENER), in addition to the Material and Energy Balance Methodology, monitoring all emissions stemming from our operations. Emissions Total Emissions 1,835,509 tCO2e 1,841,278 tCO2e 1,661,668.64 tCO2e 2019 2020 2021 Scope 1 (Fixed and mobile fuel combustion) Gases: CO2, CH4, N2O, HFC Scope 2 (Company’s use of electrical energy) Gases: CO2, CH4, N2O, HFC. 1,776,776 tCO2e 1,821,395 tCO2e 1,487,978.37 tCO2e 58,732 tCO2e 19,883 tCO2e 173,690.27 tCO2e We comprehensively comply with all regulations issued by environmental authorities by measuring our air emissions by gas type - NOx, SOx, COV, CO2, CH4, N2O, HFC, PM and other categories (Cr). — 63 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION — 64 — [102-11, 103-2, 103-3, 305-4, 305-6, 305-7, 306-4] Emissions by Gas Type Emissions by Gas Type 2019 (Ton) 2020 (Ton) 2021 (Ton) NOx SOx Volatile Organic Compounds (VOC) Particulate Matter (PM) 1,195 36.8 21.5 10.8 Other Categories (Cr) 0.000204 752.21* 17* 67.24** 18.1** 0.0002 * Changes are a result of equipment maintenance, representing a decrease compared to 2019. ** Significant changes are a result of the use of ethane gas as a fuel during the month of December. 693.25 3.8 391 25.3 0.0001 [102-11, 103-2, 103-3, 306-4] As part of our environmental strategy, we have a waste management system to streamline management processes and use eco-efficiency indicators to measure both the amount of waste generated and the waste elimination method employed. Hazardous Waste Waste Reuse (Ton) Recycling Landfill Others (Ton) Total (Ton) Elimination Method 2020 2021 (Ton) (Ton) 59.7 241.4 0 * 27.8 1.76 4.2 2,415 2,476 789.7 1,063.1 * There was no reuse derived from the fact that they went to “Another type of management” Part of our environmental strategy during 2022 will focus on involving the value chain in the creation of measures that help mitigate climate change. Through our Carbon Disclosure Project (CDP), we work alongside our business partners to create incentives for them to commit to protecting the environment. Non-Hazardous Waste Some of our major areas of action include: • Identifying opportunities to decrease costs, emissions, and energy use through periodic assessments. • Driving awareness campaigns to provide incentives for business partners to implement measures to mitigate their environmental footprint. Waste Management We are convinced that the transition to a Circular Economy model will bring with it major environmental and economic benefits for both our company and the industry in which we operate. Therefore we have reaffirmed our commitment to decreasing the amount of waste generated by our operations. Waste Generation Hazardous Waste (Ton) Non-Hazardous Waste* Total Waste (Ton) 2020 2021 2,476 1,063 * These figures include inert and non-inert non-hazardous waste. (Ton) 2,152 1,926 4,628 2,989 Waste Recycling Energy Composting Landfill Elimination (Ton) Recovery (Ton) (Ton) Total (Ton) Method 2020 2021 7.93 0 (Ton) 0 0* 9.4 9.5 2,135 2,152 1,916 1,926 *No energy recovery waste was generated; it was disposed of via landfill. Carbon Neutral Reaching our sustainable goals is a complex undertaking, which is why Braskem Idesa implements measures through which - thanks to the talent of our Team Members, the support of our clients, and the involvement of the communities in which we operate – offer outstanding benefits to everyone and allow us to achieve our goals: • Reduce Greenhouse Gas (GHG) emissions by 15% by 2028, in line with our Sustainability Linked Bond commitments. • Achieving CARBON NEUTRALITY by 2050 — 65 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11, 103-2,103-3, 304-3, 304-4] Biodiversity Mexico’s flora and fauna is a part of the country’s cultural heritage for future generations; driving the conservation of ecosystems is of fundamental importance in achieving balance within the environment and tackling climate change. This is why biodiversity conservation has played a major role in our operations from the very outset. We promote and foment research, education, and volunteering efforts in matter of biodiversity conservation, which is why, in 2016, we created an Environmental Management Unit (EMU) authorized by the Department of the Environment and Natural Resources (SEMARNAT) called El Benjamín, which covers an area comprising 100 hectares located 2.8 kilometers from our Petrochemical Complex in the community of Ixhuatlán del Sureste in the state of Veracruz. This environmental conservation area is coordinated through its Management Plan, which was validated by government authorities focusing on environmental issues. — 66 — In this space, research and conservation studies of flora its habitat, achieving the following results through our and fauna species were undertaken in the southern programs: have focused on the protection and conservation of region of the Coatzacoalcos River Basin, in addition to environmental sampling at different times of the year (rainy season, dry season, hurricane season) in order to update the database of flora and fauna species recorded within the Environmental Management Unit (EMU). • More than 1,200 Ceratozamia miqueliana plants were rescued and relocated within the Environmental Management Unit (APDC), and a demography study into Ceratozamia miqueliana was conducted with expert researchers. As part of the EMU’s conservation programs, it • During 2021, a number of scientific articles covering focuses on protecting Ceratozamia Miqueliana, flora and fauna were recorded. an endemic plant that is found on the Red List of Threatened Species and is protected by NOM-059- SEMARNAT-2010 (Environmental Protection-Wild Flora and Fauna Species Native to Mexico), given the biological and ecological importance of this species. As part of Braskem Idesa’s commitment to the planet, we • • In 2021, a total of 474 species of flora and fauna were recorded within the Environmental Management Unit. 167 species of flora recorded. [102-11, 103-2,103-3, 304-3, 304-4] • 307 species of fauna recorded - 73 species of invertebrate and 234 species of vertebrate: » Birds: 124 species » Mammals: 47 species » Reptiles: 41 species » Amphibians: 22 species » Ants: 49 species » Beetles: 15 species » Butterflies: 9 species In 2021, 45 species of flora and fauna were identified as being found in a category protected by NOM- 059-SEMARNAT-2010 (Environmental Protection- Wild Flora and Fauna Species Native to Mexico-Risk Categories and Specifications for Inclusion, Exclusion or Changes-List of At-Risk Species), of which: • 14 species are covered by CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) — 67 — • 22 species are found on the Red List, including: 9 species categorized as being Near Threatened » (NT) » » » 9 species categorized as being Vulnerable (VU) 3 species categorized as being Endangered (EN) 1 species categorized as being Critically Endangered (CR) WE ARE COMMITTED to the conservation of biodiversity in the southern region of the state of Veracruz. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 306-1, 306-2] CIRCULAR ECONOMY Environmental protection and conservation are the responsibility of every sector, both public and private, which is why, at Braskem Idesa and in keeping with our comprehensive Sustainability strategy, we decided a number of years ago to migrate to a Circular Economy model in order to better use our resources and extend the lifecycle of our products and packaging as much as possible. Transitioning to a circular model represents numerous challenges in different areas of the plastics industry: technology and innovation, best practices and designs, infrastructure, and more collaboration strategies OUR ONGOING EFFORTS focus on developing best practices that are aligned with the Circular Economy model to help safeguard natural resources. — 69 — with our value chain, clients and society in order to As part of the voluntary commitments that we have safeguard natural resources. made regarding the Circular Economy, we have defined — 68 — • • For 3 years now, Braskem Idesa has been a signatory of voluntary Circular Economy commitments: 100% of the company’s industrial units implement 8 fundamental pillars to help us achieve this goal: 1. Working with clients and value chains to drive the recycling, efficiency, and reuse of plastics. 2. Continuing to invest in the development of new best practices to manage pellet creation through renewable products. Operation Zero Pellets to 2021. 3. Developing technologies and business models to improve plastic recovery. 100% of plastic packaging reused, recycled, or 4. Promoting educational programs focusing on recovered by 2040. responsible consumption. 5. Using and supporting the use of Life Cycle We believe that it is important to achieve sustainability within society, not only based on isolated actions but also Analysis tools. 6. Supporting the measurement and through teamwork involving our clients, suppliers, Team communication of recycling indices. Members and communities surrounding our complex. These activities include product recycling, plastic waste collection activities, and educational programs to help 7. Supporting public and private sector alliances to better tackle the problem of marine debris. 8. Supporting public policies to improve solid people become more responsible for the environment. waste management. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 306-1, 306-2] Adicionalmente, participamos en la Alliance to End Platic Waste (AEPW), colaboramos con la Asociación Nacional de la Industria Química (ANIQ) y la Asociación Nacional de Industrias del Plástico (ANIPAC) y afiliados al Consejo Coordinador Empresarial (CCE). THESE INDUSTRY PARTNERSHIPS allow us to roll out innovative and sustainable production models to help drive the Circular Economy. — 70 — For further information about how we promote a Circular Economy, please click on the following link: http://www.braskemidesa.com.mx/posicionamientoeconomiacircular All the products we use, both in our production processes and operations, meet the highest quality standards and/or applicable laws. We also have quality controls in order to manage these processes correctly and responsibly. In 2019, we joined the Zero Pellet Waste program coordinated by the Mexican Association of the Plastics Industry (ANIPAC). Operation Clean Sweep® was created by the American Plastics Industry Association (PLASTICS) to roll out best practices to contain pellets, flakes, and dust, guarantee zero waste, protect the environment, and safeguard natural resources. IN 2021, WE BECAME Operation Clean Sweep Blue certified by ANIPAC and CIATEQ. [103-2, 103-3, 306-1, 306-2] To follow up on the efforts and projects rolled out during 2021, we focus on achieving our goal through 4 priority areas: • Prevention: We raise awareness among our Team Members, and we instill in them a sense of responsibility and commitment to the program. • Containment: We monitor and manage pellet containment. • Cleaning: We ensure that the workplace is properly prepared in order to avoid pellet loss and facilitate the cleaning process. • Disposal: We dispose of pellets properly to avoid polluting the environment. WE TRAINED 100% OF our Team Members and invested 555 hours in the Operation Clean Sweep® program. — 71 — DURING 2021, our Logistics Operators signed the Zero Pellet Waste commitment. The goal of joining these partnerships is to help preserve marine ecosystems and reduce our environmental impact. We also strive to involve everyone within the value chain (including clients, transport providers, suppliers and logistics operators), helping them implement sustainable practices to streamline production processes, improve waste management, and protect the environment. WE ARE THE FIRST Prevenir Polyethylene Petrochemical company in Mexico to become Blue certified as a result of reaching the zero-pellet waste goal in 2021. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION — 72 — [103-2, 103-3, 301-1, 301-2, 302-3, 306-1, 306-2] Innovative and Sustainable Solutions within the Circular Economy In keeping with our commitment to migrate to a Circular Economy, we have continued to develop our line of Post-Consumer Resin (PCR) Polyethylene resins, which guarantee batch quality, standardization, and traceability in order to launch a High-Density Polyethylene (HDPE) resin on the market that is made from 30% PCR and 70% virgin resin, as well as 50% PCR and 50% virgin resin, and 70% PCR and 30% virgin resin. The production process for PCR resin at Braskem Idesa is outlined below: 1. Production of virgin polyethylene resin at the Braskem Idesa petrochemical complex. 2. Collection by Alcamare, recycling centers and plastic waste collection partners. 3. Classification, cleaning, and extrusion of plastic waste by Alcamare. It is then mixed with virgin resin from Braskem Idesa to product the pellets of the PCR resin compound and deliver them to clients and distributors. THE CREATION OF OUR PCR RESIN Prevenir has enabled us to incorporate a recycling process into our operations, expand our sustainable portfolio, and give plastic a new life and maintain its properties. [103-2, 103-3, 306-1, 306-2] PCR Resin Production Process RECYCLER Collects post-consumer plastic material to start the process. 1 SEPARATING 3 MILLING 2 WASHING Ensures regulatory and process control mechanisms. Guarantees product quality. Employs good practices to ensure material is not lost or wasted. Transports its virgin resin to recycling plant. 4 PELLETIZING MIXING 5 VIRGIN RESIN BI 6 BLENDING — 73 — 7 PACKAGING LOGISTICS OPERATOR Responsible for packaging and distribution of the product. Controls distribution and delivery. Offers customer support and delivery tracking. 9 CONVERTERS 10 BRAND OWNERS Major companies that will help us educate consumers. 8 DISTRIBUTION S T N E I L C Braskem Idesa 2021 Sustainability Report ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 306-1, 306-2] [306-2] THE PCR OFFERED BY BRASKEM IDESA for the manufacturing of packaging and containers can now be found on the shelves of self-service stores. IN 2021, resin sales increased through an expanded number of partnerships with brand owners and clients. — 74 — Through a forward-looking approach, Braskem’s global commitments to the Circular Economy business model are: • By 2025, expand the I'm Green Recycled™ portfolio, which includes sales of 300,000 tons of products that contain recycled material per year. • By 2030, continue expanding the I'm Green™ portfolio, which includes sales of 1,000,000 tons of products that contain recycled material per year. • By 2030, work towards recovering 1,500,000 tons of plastic waste in order to avoid disposal via incineration, landfill or dumping. Memorandum Of Understanding (MOU) with Alcamare Post-Consumer Resins (PCR) made from Polyethylene (PE) and Polypropylene (PP) represent a viable option for fulfilling the commitments to use recycled materials made by global brand owners, and solutions for food products will play a crucial role. They are also a solution for complying with legislation in the United States and Mexico and focusing on providing incentives for the use of recycled materials in packaging. This is why, in collaboration with Alcamare, we signed a long-term cooperation agreement to develop food-grade recycled material. This collaboration agreement represents a significant advance in accessing a new select market for high-quality recycled materials that will complement the virgin products produced by Braskem Idesa. This sector will see a rapid growth rate, almost three times that of virgin resins. Recycled products require major investments in technology in order to be able to properly separate, wash, extrude and decontaminate plastic waste to reach the level of purity required. We expect that the use of these resins will help create attractive solutions for producers and consumers. "THIS COLLABORATION PLAYS AN IMPORTANT role in allowing us to continue offering the solutions that our clients and brand owners need, in addition to helping Alcamare and Braskem Idesa reaffirm their visions, purposes and technological development". Alfredo Prince - Braskem Idesa's Commercial Director. — 75 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [306-2] Partnerships to Drive the Circular Economy This partnership will enable Genomma Lab to remain a step ahead and reach the goals of its 2025 Global Sustainability strategy – specifically in the area of In August 2021, we consolidated our partnership with Our Products, meeting its commitment to integrating Genomma Lab and with Citrulsa, a plastic processer in recycled resin into its current portfolio of products and Mexico, to help make our value chain more responsible future launches. by using polyethylene resin that contains 30% recycled material from Braskem Idesa to make containers for Genomma Lab products, in addition to helping streamline the use of fossil resources and promote recycling. Educational Programs that Promote Responsible Consumption and Recycling Together, we have joined our strengths and capabilities together to create a vision of sustainability and contribute to the Circular Economy, sharing principles and developing solutions to tackle current environmental challenges, such as a lack of resources, adequate plastic waste management, and climate change. — 76 — As part of this partnership, Citrulsa, one of Genomma Lab’s suppliers, has incorporated PCR resin developed by Braskem Idesa into the polyethylene containers it supplies to Genomma Lab for brands including Vanart®, Alert®, Cicatricure®, Goicoechea®, Silka®, Teatrical®, among others. "BRASKEM IDESA PROVIDES THE Mexican market with high- quality solutions for high- performance applications, using an increasingly higher percentage of post-consumer recycled content, both in terms of polyethylene and polypropylene.” Alfredo Prince-Braskem Idesa's Commercial Director. As part of our Social Responsibility efforts, at Braskem Idesa we have developed programs that promote identify plastics, drive education about how to responsible consumption and proper waste separation, and promote a culture of recycling and the Circular Economy within society. These actions help take full advantage of the lifecycle of plastic and drive social changes regarding post- consumer waste management. Our overarching goal is to help avoid plastic waste being incorrectly disposed of and fulfil our commitments to the Circular Economy. Promoting infrastructure to drive plastic collection and recycling alongside our clients, brand owners, Team Members and society is how we can help drive change through small actions. TEAMWORK HAS ALLOWED US to achieve great things and drive more projects relating to the Circular Economy. [306-2] PLASTIANGUIS At Braskem Idesa, we adopted this program created by the Mexican Association of the Chemical Industry (ANIQ) in 2017, which focuses on supporting education through responsible consumption, recycling, and plastic processing by creating infrastructure for collecting plastic waste, which can then be exchanged for basic food products or school supplies. Despite the pandemic, we successfully coordinated this program while complying with the health measures rolled out by the authorities. The milestones we reached as part of the Plastianguis program in 2021 are outlined below: • 15,000 people benefitted. • 3 locations: Faculty of Chemistry at UNAM in CDMX, Nanchital in Veracruz, and the Autonomous University of Guadalajara (UAG). • Brand owners, clients, distributors, and participating NGO’s. IN 2021, we rolled out the first program in Guadalajara, while this annual program is already well established in Veracruz and CDMX. +134 TONS of plastic waste collected and recycled during 2021 — 77 — Braskem Idesa 2021 Sustainability Report— 78 — ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [306-2] PLASTIVALE This program is part of Braskem Idesa’s commitment to promoting environmental education, a culture of recycling and the Circular Economy, focusing mainly on whom we consider to be the leading agents of change: children and young people in primary and secondary education. We have Plastien, which operates at primary, secondary and high schools in Nanchital and Coatzacoalcos, in the state of Veracruz. In addition to the benefits relating to changes in the culture of environmental conservation, we support academic development by exchanging post-consumer plastic waste for school supplies and training. This year, we offered talks to teachers about the changes to the program, in addition to providing them with a COVID kit for personal and school use. We achieved the following results: • 3 tons of plastic collected. • 20 schools benefitted in Nanchital and Nuevo Mundo. • 3,000 children benefitted. • 30 COVID kits donated. • 90 furbished computers donated. 10 TONS collected and 51 schools benefitted during 2021. WE CONTRIBUTE to the Circular Economy by driving the education of young people and children, our leading agents of change. [306-2] PLASTIEN A community collection cooperative that processes, disposes and traces plastic waste, it is also a Social Responsibility project promoted by Braskem Idesa and comprises 90% female and 10% male entrepreneurs. The goal of this project is to drive social inclusion and socio-economic development of people who collect and classify recyclable materials, promote the development of the recycling value chain, and foment its economic growth and the Circular Economy. THERE IS A PERMANENT COLLECTION CENTER that has the capacity to handle 10 tons of waste on average per month (PET, PP, PE, cardboard, pallets, junk). WE CONTINUE TO CREATE A COOPERATIVE that focuses on collecting, processing and adequately disposing of plastic waste. Social Impact Project — 79 — In 2021, we collaborated with the Plastic Fishing Championship (Campeonato de Pesca de Plástico) organized by the Ministry for Sustainable Development (SEDESU) and state and local authorities. The Organization for Environmental Co-responsibility (ONAM) coordinates the collection of the plastic waste by recycling partners: • 30 fishermen participated. • 2.7 tons of plastic collected in 4 hours. BRASKEM IDESA IS CONVINCED that together we can drive change within the plastic industry, rethinking our business models, promoting responsible consumption, and ensuring the adequate management and recycling of plastic waste." Mariana Albarrán-Braskem Idesa´s Circular Economy & Sustainability Leader Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [306-2] — 80 — PRODUCT LIFE CYCLE Monitoring and mitigating environmental impacts play a fundamental role in both our Sustainability Strategy and our Circular Economy, which is why we use tools such as Life Cycle Analysis (LCA) to analyze our products. This analysis encompasses all our processes - from the value chain and the extraction of the raw materials to final disposal - in order to corroborate the benefits that our solutions have on sustainable development. In 2021, we undertook the Environmental and Social Life Cycle Analysis of our High-Density Polyethylene (HDPE) with Post-Consumer Resin (PCR), which is of fundamental importance in measuring the potential impacts that the production of recycled plastic resin has on the environment, from the outset to the manufacturing of 1 kg of PCR resin. BRASKEM IDESAS'S SOCIAL LCA Prevenir is the first of its kind in the industrial plastic recycling sector in Mexico. Environmental Aspects: Climate Change Potential: (PCG)(kg CO2eq / kg LDPE resin) assessed using the Circular Footprint Formula (CFF) — 81 — This graph represents the comparison of the carbon footprint of virgin HDPE resin vs. PCR with different LCA methodology uses comparisons regarding percentages of post-consumer recycled material, environmental performance and average consumption expressed in Kg CO2eq / Kg of resin. of 100% virgin polyethylene resin in Mexico, in addition to including its social impact through a Social Life Cycle Analysis based on ISO:14040 (NMX-SAA-14040- IMNC-2008), ISO 14044 (NMX-SAA-14044-IMNC-2008) PNEMU SETAC 2013 for Social LCA, and PNEMU Social LCA Guidelines for Products and Organizations. The major results of the LCA are outlined below: Social Aspects: As part of the Social LCA, which assessed the performance of Braskem Idesa, Alcamare and its social waste collection centers, they achieved a high performance rating, in addition to documenting good practices in the categories of health, safety, community, the eradication of child labor, economic development, and community commitment. 2.11 1.81 1.49 1.17 0.85 0.37 a P s i n a d i o N e D A E a l n c i o a v ir s i n a r e e B d R R o m e r p D s a e e R c l e s i n d 7 A E n P e m I d e k g s y c e r r a I´ m g 0 % V – 3 y c e r e n e 0 % R s i n e R d 5 c l e r a I´ m g 0 % V – 5 c e r n e 0 % R e R c l e e y s i n d 3 r a I´ m g 0 % V – 7 e n e 0 % R s i n e R c e r a I´ m g d 1 c l e y e n e 0 % R r 0 Braskem Idesa 2021 Sustainability Report ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION SOCIAL PERFORMANCE At Braskem Idesa, we are committed to people, including our Team Members and the community found within the company’s area of social influence. As part of this commitment, we have implemented a strategy focusing on their wellness, human development, our Social Responsibility, and the safeguarding of their Human Rights. — 82 — — 83 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-7, 102-8, 102-41] Team Members at Braskem Idesa Our Team Members are a fundamental piece of Braskem Idesa; their commitment, dedication and hard work mean that we can reach each and every one of our goals, which is why we prioritize their wellness and well-being. In 2021, our operations remained unchanged, and we kept on 100% of our Team Members, achieving the following results: Women at Braskem Idesa Women at Corporate Women at Complex Total — 84 — Men at Braskem Idesa Men at Corporate Men at Complex Total 2020 2021 88 104 192 86 120 206 2020 2021 109 530 639 109 624 733 [102-7, 102-8, 401-1] In 2021, Mexico reformed labor laws, meaning that employees can no longer be employed through outsourcing. As such, since August 2021, all people directly related to the operations and maintenance of our complex were recruited as Team Members of Braskem Idesa. We safeguard the labor rights of our 939 Team Members (195 people working at Corporate and 744 at our Complex), of whom 206 are women and 733 are men. They have a permanent and full-time contract and are distributed as follows: of the 939 Team Members, 938 have a permanent contract and 1 has a temporary contract, and all Team Members work full-time. Below are our hiring rates for 2021: Female Team Members Below the age of 30 Between 30 and 50 Over the age of 50 Total Total 64 138 3 205 Total Female Team Members Hired in 2021 Hiring Rate for Female Team Members in 2021 21 7 - 28 10.24 3.41 - 13.65 — 85 — 2020 2021 Total Team Members 831 939 Male Team Members Below the age of 30 Between 30 and 50 Over the age of 50 Total Total 119 524 89 732 Total Male Team Members Hired in 2021 Hiring Rate for Male Team Members in 2021 42 94 11 147 5.73 12.84 1.5 20.07 AT BRASKEM IDESA, 43% of vacancies were covered by internal candidates, 80% of which are leadership posts, while 35% of junior positions were covered by interns. 44.29% OF OUR Team Members are covered by a collective bargaining agreement. This increase is due to the reforms made to Workplace Outsourcing in Mexico during 2021. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-7, 102-8, 401-1] [103-2, 103-3, 406-1] The turnover rate in 2021 was 7.35%, and the results are outlined below: Female Team Members Total Total Female Team Members Dismissed in 2021 Turnover Rate for Female Team Members in 2021 Below the age of 30 Between 30 and 50 Over the age of 50 Total: 64 138 3 205 5 11 - 16 2.43 5.36 - 7.79 Male Team Members Total Total Male Team Members Dismissed in 2021 Turnover Rate for Male Team Members in 2021 Below the age of 30 Between 30 and 50 Over the age of 50 Total: — 86 — 119 524 89 732 5 41 7 53 0.68 5.6 0.95 7.23 Furthermore, and in order to drive the development of our Team Members, we offer long-term incentives, such as our savings plan, in which Braskem Idesa covers part of the contribution, while the remainder is covered by the Team Member. Our directors also have access to a stock purchase program. In 2021, we kept our remote working model in place as a result of the COVID-19 pandemic, prioritizing the health of our Team Members. In 2022, we will be rolling out a new hybrid working model (remote and in-person working), which will allow us to offer new work models. Furthermore, and in order to safeguard and support the families of our Team Members, we offer a range of different benefits, including childcare support and maternity programs that include 21 calendar days of paid leave and 7 calendar days of a reduced work schedule for our female Team Members. When they return to work, we also offer 5 working days of paid paternity leave, which is in addition to the leave stipulated in the Federal Labor Act (this also includes paternity leave as a result of adoption). Diversity, Equity and Inclusion (DEI) At Braskem Idesa, we are committed to the development and well-being of our Team Members, driving measures that ensure good relationships, impeccable behavior, and, above all, a healthy work environment, all governed by our Code of Conduct. Furthermore, in terms of Diversity, Equity and Inclusion, we raise awareness among and offer training to our Team Members through podcasts, workshops and activations, such as Diversity, Equity and Inclusion Week or our Recruitment Fair for people with disabilities, in addition to our DEI approach to the induction processes for new Team Members and our recruitment and selection process. AT BRASKEM IDESA, 11% OF DIRECTORS Prevenir 28.13% of managers and 34.43% of coordinators are women. In terms of pay, our performance assessment system uses quantitative and qualitative methods that categorize positions using four factors: Skills, Problem Solving, Responsibility, and Working Conditions. Another element that we deem to be relevant in helping to promote diversity and inclusion are people with disabilities, which is why, during 2021, we included a front desk service to underpin our efforts to increase the number of people with disabilities within the workforce, in addition to promoting among our service providers the inclusion of people with disabilities in their workforces, while taking into consideration that the post does not pose any risk to their health and safety. IN 2021 we hired 1 person with a disability through our front desk service. — 87 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2, 103-3, 406-1] [103-2, 103-3, 406-1] DURING 2021, WE COORDINATED more than 60,000 training hours, with an investment of USD $475,000, for 1,138 Team Members and interns. Our Individual Training Plan (ITP) offers tools that, in keeping with Braskem Idesa’s business vision, drive the personal and professional growth of our Team Members by taking into account their functions and soft skills in order to ensure the plan is tailormade to their needs. In addition to training programs, we also give individual performance reviews to each of our Team Members in order to ensure that they can all contribute to the business vision we want to achieve. These reviews are planned, monitored and recognized every year through our Plan of Action (PA). BRASKEM IDESA IS A COMPETITIVE and outstanding company in terms of pay and benefits to its Team Members, in addition to recognizing their performance in helping to fulfil the PA goals. — 89 — At Braskem Idesa, we promote a culture of inclusion, which is why we value our Team Members for their skills and knowledge. During the year, we promoted issues such as Human Rights, Gender Equity, Unconscious Bias, LGBTIQ+ Inclusion, Generational Inclusion, Multiculturalism, and People with Disabilities. AT BRASKEM IDESA, we drive cultural diversity through Team Members from 5 different countries who work at the company. — 88 — IN 2021, WE INVESTED more than USD $16,250 and 1,900 training hours in areas such as Diversity, Inclusion and Gender Equity. ALIGNED WITH MACRO GOAL 6 (SOCIAL RESPONSIBILITY AND HUMAN RIGHTS), Prevenir at Braskem Idesa we have developed a Human Rights training program. Training At Braskem Idesa, we promote the continuous development of people, allowing them to find their own path and lead their own transformation. This has enabled us to ensure that all our Team Members have an Individual Training Plan. During 2021, some of the training areas we focused on include: • Mentoring and Coaching Programs • Language Programs • Master’s Program • Organizational Culture Refresher • Business Coaching: Transformative Leadership • Personal Branding • Mindfulness and Happiness at Work • Ethics Line • Personal Data Protection and Privacy • Brigade Training • Basic Fire Extinguisher Course • Quality Policy and Goals • Design Thinking • Black Belt Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11, 103-2, 103-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7] Industrial Health and Safety In keeping with our Sustainability Strategy and Macro The goal of the Intelius system is to align the company Goal 1, we are committed to the health and safety of our with global best operating practices in order to Team Members, in addition to that of the communities integrate and create a standard for both industrial and within our area of social influence, in order to ensure non-industrial processes through a common language their well-being and achieve the best possible results that unifies global practices that make Braskem Idesa and become a benchmark for the chemical and more competitive and that involve Team Members petrochemical industry. in order to ensure high performance and operational At Braskem Idesa, we have developed a management excellence. system called Intelius, which enables us to assess our Our Health, Safety, Environment and Social performance based on domestic and international Responsibility Policy is the framework that governs our standards in Health, Safety and Environment (HSE), internal Industrial Excellence and Quality, and an operations and the way in which we act, and it is based on the following fundamental principles: culture of industrial safety and risk prevention. — 90 — [102-11, 103-2, 103-3, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7] Meet client expectations. Ensure cooperation and partnership Promote holistic development of our with suppliers. stakeholders. — 91 — Implement preventive actions covering: • People’s health and quality of life. • The safety of people, processes, and facilities. • Environmental aspects and the rational use of natural resources. • Product and service quality. Improve our processes, products, and Maintain a constructive relationship with services, promoting innovation the communities in which we and complying with legal operate. requirements. Furthermore, we also offer training to our Team In order to detect areas of opportunity and develop Members and contractors working at our complex in quality programs to ensure the safety of our Team the following areas: Work at Heights, Hot Work and Members, we have implemented a Work Permit Audit Work with Energized Equipment, Hazardous Energy system that complies with STPS standards and the Isolation (PAEP), Hydro Jetting, Blasting, and the principles of our Intellius platform. Correct Use of Personal Protection Equipment (PPE). Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-11,403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7] [102-11, 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7] We also safeguard the health of our Team Members and contractors by offering them access to the following services: 1. Estudios de laboratorio. 2. Consulta General. 3. Tratamientos Deambulatorios. 4. Atención a primeros auxilios. 5. Canalización de pacientes a hospitales y clínicas de IMSS 6. Servicios de Medicina Preventiva. 7. Seguimiento y gestión de archivo clínico. — 92 — Industrial Safety Indicators: SSMA Recordable Incident Rate Frequency Rate – Lost-Time Injuries Event Rate – TIER 1 Process Safety Event Rate – TIER 2 Process Safety Severity Rate TIER 1 Process Safety WE INCLUDE our contractors in our Health and Safety training programs. Real 0.48 0.24 0 0.24 0 * Manual Materials Handling (MMHH): process of routinely moving and handling objects through carrying, holding, lifting, pushing, pulling and bending. Frequency Rate People Safety (CAF+SAF) Events/MMHH 1.43 0.38 0.26 0.69 0.48 0.45 2017 2018 2019 2020 2021 Braskem Idesa 1st Quartile Frequency Rate Process Safety (TIER 1+ TIER2) Events/MMH 0.38 — 93 — 0.23 0.24 0.00 2018 0.00 2019 2017 2020 2021 BRASKEM IDESA REMAINS an industry benchmark and is ranked in the top quartile of safety indicators. Braskem Idesa 2021 Sustainability ReportALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2 ,103-3, 413-1] — 95 — ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [103-2 ,103-3, 413-1] Community We have reaffirmed the commitment we have to sustainable development and community development Local Entrepreneurship and Innovation: Empowering people to develop businesses that have within the area of social influence surrounding our a positive social and environmental impact through a complex, which is why we have a Private Social focus on female empowerment. Investment (PSI) strategy* to drive actions that add value, focusing on three main areas: Circular Economy: Driving projects that promote the Circular Economy as a business model to tackle challenges relating to sustainability and environmental education. Education: Promoting and actively participating in measures focusing on education, especially Science, Technology, Engineering and Mathematics (STEM) and technical training. — 94 — OUR AMBITION, IN KEEPING WITH MACRO GOAL 6 OF BRASKEM IDESA’S SUSTAINABILITY STRATEGY, is to be acknowledged as a company that promotes human rights, drives equity within our value chain, and contributes to the local development of communities within our area of social influence. *La Inversión Social Privada es el uso voluntario, planificado, supervisado y evaluado de recursos privados para la ejecución de iniciativas de interés público, guiadas por la estrategia de la empresa y por una actuación participativa de la comunidad, del poder público y de otras empresas. We also have measures such as our Global Sustainable Development Policy and the EHS, Quality and Social Responsibility Policy, and our Social Management System - not to mention our Donations and Sponsorship Guidelines, which allow us to establish steps to support our community engagement strategy. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [103-2 ,103-3, 413-1] Our Area of Social Influence [413-1] Stakeholder Engagement Plan We work closely with the communities within our area of social influence by promoting open and on-going communication that allows us to provide them with information regarding our operations, in addition to Industrial Processes • • Employment Opportunities • Biodiversity Conservation Activities • Circular Economy, Benefits and the Plastic listening to their needs and identifying our areas of Lifecycle opportunity. Casas AbiertasProgram This program is open to the general public and has been organized in a face-to-face format for the past 13 years and as an informative newsletter over the past 2 years. It has allowed us to share with the authorities, communities, media outlets and people in general information about our company: • Health and Safety • Social Programs • Environmental Monitoring Results involving the Community IN 2020 & 2021 as a result of the pandemic, the Open House Program was turned into an informative newsletter. — 97 — Participation in the Casas AbiertasProgram Total number of people* informed Total Participants from Braskem information) Idesa (volunteers to communicate Cumulative Total Participants/People Reached since 2012 (13 events) 2020 500 9 3,747 2021 1000 9 4,747 *We changed the term participants for people informed given the changes to the program’s format. Coatzacoalcos Mundo Nuevo — 96 — Democracia y Libertad Nahualapa Lázaro Cárdenas Nanchital de Lázaro Cárdenas 05 de Mayo Pollo de Oro Los Coquitos Ixhuatán del Sureste El Chapo F1 Communities: Pollo de Oro, Nahualapa, Lázaro Cárdenas F2 Communities: Democracia y Libertad, Los Coquitos, El chapo, 05 de Mayo F3 Communities: Coatzacoalcos, Mundo Nuevo, Nanchital de Lázaro Cárdenas, Ixhuatlán del Sureste WE MAINTAIN OUR our Social License to Operate as a result of our focus on being a good neighbor by driving social development, wellness, health, safety and environmental conservation. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] Community Meetings [413-1] Community Newsletter This Program began in 2012 to promote dialog with the communities surrounding our Another tool we use to engage with the community is a newsletter that allows us to share the results of our social, petrochemical complex. Biannual meetings were organized when we began operations, and, environmental and operational programs. We also publish informative leaflets and put up posters in strategic and as of 2016, they are now held annually. During 2021, and in order to stay connected with these visible points within the community to keep our areas of social influence informed. communities, we organized online meetings, in addition to in-person visits with local government officials and community leaders. DURING 2021, WE HAD 1,200 interactions with people from the community. — 98 — The Braskem Idesa Experience – Community Visit to our Petrochemical Complex As part of our stakeholder engagement strategy, we have organized virtual tours of our Petrochemical Complex for people, NGOs, or other companies in order to offer them the opportunity to learn more about our facilities, operations, Team Members and safety protocols. Grievances and Complaints Mechanisms (MAQ) We offer a system of suggestion boxes and freely available complaint forms to our communities, comprising an anonymous hotline operated by a third party to report any complaints or comments about our operations. We also have an Ethics Line run by a third party and operated by Compliance to ensure the confidentiality and monitoring of the complaints received. Grievances and Complaints Mechanisms(MAQ) Records 2020 2021 Notification of Reception and Monitoring of Complaints Number of Complaints Number of Requests 0 3 0 5 5 0 — 99 — During 2020 and at the beginning of 2021, as a result of the public health crisis, we stayed connected with people using technology to create a virtual tour video that could be shared via Community Health and Safety WhatsApp. Our goal is to raise awareness regarding the health and safety of everyone within our area of social influence, and we coordinated the following measures during 2021: 2020* virtual Total Visits by Our Stakeholders* 630 2021 virtual 400 2021 In Person 82 *There were no in-person visits during 2020 as a result of the COVID-19 pandemic. *En 2020 no se realizaron visitas de forma presencial debido a la pandemia por COVID-19 Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] Healthcare Campaigns Breast Cancer Prevention Campaign Safe School As part of our campaign to help in the prevention and early detection of breast cancer, we offered a series of talks and workshops for women in the communities of Pollo de Oro, Nahualapa and Lázaro Cárdenas, in collaboration with the health authorities in Coatzacoalcos, Veracruz. We also coordinated 100 We trained students and teachers from 6 schools located in the communities of Pollo de Oro, Nahualapa and Lázaro Cárdenas regarding the Emergency Response Plan (Drills, Evacuation and Risk Identification within Schools, in addition to Emergency Response). We were supported by the Braskem Idesa Emergency Team and mammograms. the local Civil Protection services. Deworming and Vitamin Campaign Community Brigade Training In July, we began the first community health campaign, focusing on providing deworming and vitamin tablets to help 600 people in the communities of Pollo de Oro, Nahualapa and Lázaro Cárdenas. Members of the communities gathered at their respective health In August, we held our first induction sessions for the three Community Brigade groups from the communities of Pollo de Oro, Nahualapa and Lázaro in Cárdenas, creating groups to receive training emergency response in order to support their centers for an informative talk about the importance respective communities. This session was coordinated of this campaign before being given vitamins to help by Civil Protection in Nanchital, the Local Mutual Help — 100 — boost their immune systems. Committee (CLAM), and Braskem Idesa. [413-1] Dengue Prevention Campaign – Community Work At the end of June, Braskem Idesa and members of the communities of Pollo de Oro, Nahualapa and Lázaro Cárdenas organized cleaning activities to prevent and minimize factors that encourage the reproduction of the Aedes Aegypti mosquito, which transmits the Dengue virus. During community work sessions, common areas and busy streets were also fumigated. Doctor on Call Program In 2021, we held 4 sessions of the Doctor on Call program, offering medical appointments via videoconference in the communities of Pollo de Oro, Nahualapa, Lázaro Cárdenas and Los Coquitos, benefiting 24 patients. Healthcare workers from each community treated the patients one by one, checking their vital signs, weight, height and temperature before they had their remote appointment with the doctor. After each appointment, patients were given the medicine prescribed by the doctor. This activity is held once a month, ensuring on-going monitoring and medical support for people in the community. WE BENEFITTED more than 5,722 people through our Community Health programs during 2021. — 101 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] Local Development Projects In order to improve the areas in which people from the communities can meet up safely and harmoniously to promote education and environmental conservation, during 2021 we focused on the following infrastructure projects: Dome Construction at Emiliano Zapata Elementary the in School community of Ejido Lázaro Cárdenas: located • Wireless modem with good signal. • Plastic collection cylinder for HDPE bottle caps. • Log for users to record their information and the amount of time they used the internet. • Poster containing the rules and brief instructions on how to connect to the internet. As part of our social investment program, we built a dome at the Emiliano Zapata elementary school located in the community of Ejido Lázaro Cárdenas. infrastructure project benefits communities This Prior to the launch of the program, we surveyed community members in order to find the ideal location to install this equipment. Schools from the three communities were chosen, and they are responsible surrounding the plant by creating a space where for caring for and monitoring the equipment to ensure students can safely focus on their activities and that it is kept in good working conditions, in addition development. to enforcing proper social distancing and hygiene — 103 — measures. Plastired Project: This project focuses on providing internet access for educational, health or work purposes through an approach that encompasses both co-responsibility and internal guidelines. The fee for using this service is to donate 3 High-Density Polyethylene (HDPE) bottle caps. The infrastructure installed includes: 160 CHILDREN benefitted through the Plastired program. — 102 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] Participative Environmental Monitoring (MAP) [413-1] MAP’s undertaken to date: In keeping with our sustainability strategy, and as part of our social and environmental efforts, we have promoted this program among members of the communities of Pollo de Oro, Nahualapa, Lázaro Cárdenas, Los Coquitos and El Chapo, allowing them to actively participate in the environmental monitoring of air quality, water and noise within Number of MAP’s their communities through the following measures: Members of the Community Involved IN 2022, WE COMPLETED 2020 2021 15 71 12 111 12 Participative Environmental Monitoring sessions, and a total of 111 members of our communities took part. Program Introduction The goal is to raise awareness regarding the project and the measures that Braskem Idesa is taking to mitigate any impact. — 104 — Sampling This is undertaken in collaboration with a certified laboratory, and the procedure for each monitoring program is explained. Furthermore, information is provided about the equipment used during the sampling process. Presentation of Results Thirty days after the sampling process, a session is organized in the community where the sampling took place to present the results obtained and have them interpreted by an environmental engineer from the Health, Safety and Environment (HSE) department at Braskem Idesa. During 2021, the participation by members of the community in Participative Environmental Monitoring was as follows: Community Participants in Air Quality Monitoring Participants in Water Quality Monitoring Participants in Noise Monitoring Total Participants per Community Pollo de Oro Nahualapa Lázaro Cárdenas Los Coquitos 12 9 7 1 6 5 9 N/A 7 2 2 1 22 11 14 3 Macro Social Investment Plan (PMIS) The Macro Social Investment Plan is a program that benefits communities within our area of social influence to help drive economic development in the region by creating self-employment opportunities and boost their income in the short-, mid- and long term. The goal of this plan is to help improve the quality of life of members of the community, not only in financial terms but also in social terms, by driving social inclusion, entrepreneurship, environmental conservation, cultural promotion, gender equity, education, and community health and safety. ARTECOP S.C. DE R.L. DE C.V. (PLASTIEN) A certified collection center for material such as HDPE plastics, as well as other materials from industries within the region, including cardboard, old files and pallets to create benches for public spaces. It collects plastic from schools from the region and participates in recycling campaigns, in addition to creating local jobs for young people and adults. — 105 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] [413-1] In 2021, Plastien achieved the following results: UNIMEX S.C. DE R.L. DE C.V. (TEXTISUR) • 7 new jobs. • 11 temporary jobs. • 25% increase in family income. • 38 tons of plastic waste collected during 2021. • Participation and collection of waste through the Plastivale and Plastianguis programs. • 2 recycling partners: POLIPLAST and OMNIGREEN. — 106 — A textile project coordinated by women from the community of Nanchital, it focuses on making uniforms, and, during the pandemic, it switched to the production of facemasks and PPE for the healthcare sector that meet COFEPRIS quality standards. In 2021, it achieved the following results: • Maintaining and creating 13 jobs. • Offering 9 people training in technical and management skills. • 25% increase in family income. • Main products: overalls, trousers, industrial work shirts, medical gowns, chef’s jackets and facemasks. • 4 major clients: Confederation of Mexican Workers (CTM), Petróleos Mexicanos (PEMEX), a local maintenance company (COMAYOC) and Braskem Idesa. — 107 — We were presented the Socially Responsible Company (ESR) certification by CEMEFI for the fourth consecutive year. We were presented with an award for Best Practices in Corporate Social Responsibility in Mexico and Latin America for our COVID-19 support program. We drive Social Responsibility within our Value Chain alongside our clients. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] [413-1] Corporate Volunteering Program Every year, we organize volunteering activities for our Team Members and other participants to help promote • Volunteering Games: A global competition among Team Members from Braskem Idesa and Braskem the development of the communities located around units located in Mexico, Brazil, the United States our petrochemical complex, encourage the collection and Europe. of plastic waste, drive recycling initiatives, and focus on environmental conservation activities. In Mexico and around the world, we focus on three main areas, through which we have been able to achieve outstanding results. These areas are: • Corporate Volunteering and Alianza Anticáncer: In 2021, the Mexikaans team, made up of Team Members from Braskem Idesa and their families, helped Alianza Anticáncer Infantil, an institution that provides support to boys and girls undergoing cancer treatment, donating 240 personal care kits, • Volunteering programs, League: Local volunteering hair for wigs, and more than MXN $170,000 to be lasting for one or two days and put towards cancer treatments. comprising groups of volunteers that focus on recycling, the cleaning of ecosystems, support for animal welfare associations, as well as the health • WeCareWeek: A global week of volunteering activities that focuses on promoting the Circular and safety of people living in vulnerable situations, Economy. among others. Los resultados obtenidos del — 108 — The results of the Braskem Idesa volunteering program in 2021 were: • 461 volunteers among Braskem Idesa Team Members. • 70 guest volunteers. • +1,500 volunteering hours during 2021. • 5 associations and foundations supported. • 23 communities in Mexico benefitted. — 109 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE SOCIAL PERFORMANCE CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [413-1] [413-1] Local Recruitment Program - Avanza At Braskem Idesa, we are committed to the economic and social development of people in the community, which is why we rolled out this program to promote employment opportunities and drive local recruitment in the area of social influence surrounding our petrochemical complex located in Nanchital, Veracruz. DURING 2021, ALL 91 PEOPLE HIRED WERE KEPT ON, REPRESENTING 23% Prevenir of the economically active population from F1 communities (Pollo de Oro, Nahualapa, Lázaro Cárdenas) — 110 — Number of Private Social Investment Projects Summary of 2021 social performance results: 2019 9 2020 27 2021 31 Investment in Social Management $ 14, 748,560 MXN = 715,949 USD $11,188, 595 MXN = 2020 2021 System (MXN) Direct Beneficiaries of Social Management System (F1 and F2 Area of Social Influence) Number of Private Social Investment Projects (PSI) Number of Donation Projects Plastic Waste Collected and Processed (ton) Schools Benefitted Volunteering Programs 557,756. USD 59,386 (9,386 direct and 50,000 48,000 (32,541 direct and indirect) 15,459 indirect) 27 2 109 80 16 31 8 167 35 11 Local Community Operations, Impact Assessments and/or Development Programs 2020 2021 No. Operations Percentage of Programs Implemented No. Operations Percentage of Programs Implemented Social Impact Assessments Environmental Impact Assessments Publication of Social and Environmental Assessments Development Programs based on Community Needs Participation Plans based on Stakeholder Mapping Community Consultation Processes and Committees Employee Committee to tackle Impacts Local Community Formal Complaints Procedures 25 7 10 10 27 3 4 3 92.59% 25.93% 37.04% 37.04% 100.00% 11.11% 14.81% 11.11% 31 7 11 31 31 3 4 3 94% 100% 100% 94% 95% 100% 100% 100% — 111 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION COVID-19 SUPPORT PROGRAMS Since the beginning of the COVID-19 pandemic, the chemical industry was declared an essential sector by the federal government. During 2021, at Braskem Idesa we continued our operations in strict compliance with health and safety protocols, pursuant to the recommendations of the World Health Organization (WHO), the Mexican Social Security Institute (IMSS), the Mexican Department of Labor and Social Work (STPS), and external consultancy firms (ICAS). — 112 — — 113 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION Team Member Health and Safety Furthermore, we rolled out daily health questionnaires for all Team Members, visitors and contractors, created At Braskem Idesa, providing a safe environment and attendance lists, and carried out rapid COVID-19 on-going communication to our Team Members testing to help decrease the risk of infection. and our contractors is of fundamental importance, which is why, from the beginning of the pandemic, we established prevention protocols. We began by creating a senior management committee tasked with monitoring the situation and the Health Brigades on a daily basis and supervising compliance with the prevention measures in place at our facilities. We also rolled out the infrastructure necessary to quickly ensure that more than 50% of our Team Members from both our complex and corporate office could start working from home. OUR RISK prevention measures have covered more than 11,953 Team Members, contractors and visitors during 2021. — 114 — AT BRASKEM IDESA 2. Employee Transport we made no direct or indirect Prevenir reductions to our workforce, and we kept on 100% of the members of the communities within our area of social influence and suppliers. We rolled out transport routes to guarantee and safeguard the health of our Team Members on entering or leaving the complex, limiting maximum vehicle occupancy to 40%, using only window seats to maintain maximum distance, ensuring all vehicles are sanitized on a daily basis, and making hand sanitizer available for Team Members. On boarding the employee transport, the temperature of each passenger is taken, all Team Members must During 2021, we maintained the following prevention wear facemasks, and social distancing (1.5 m) must be measures: observed when queuing for the bus. 1. Access Control At all access points to the petrochemical complex and corporate offices we installed filters that included thermal imaging cameras, temperature stations, 64 sanitizing gel stations, disinfectant mats, and social distancing and PPE protocols. DURING 2021 transportation services were offered to 768 Team Members and 465 contractors. 3. Social Distancing and Health Brigade In compliance with public health recommendations issued by the Mexican authorities, we rolled out actions to ensure social distancing in cafeterias, canteens, reception areas, conference rooms and the auditorium, limiting occupancy to 40%, installing barriers, posting social distancing reminders, and redistributing and optimizing spaces to help avoid or mitigate infections among Team Members and contractors. In addition to these social distancing measures, we created a Health Brigade comprising security personnel to ensure compliance with the measures implemented. This brigade filed a daily report outlining any incidents that occurred during the day. THE HEALTH BRIGADE helped us to prevent compliance issues with the public health measures implemented at the complex. 4. Cleaning and Disinfection We have crews that are tasked with cleaning and disinfecting common areas, vehicles, access points, workspaces, and major points of contact on a daily basis. In order to ensure proper sanitization, a diluted solution of chlorine or a nebulizer with DERM-O-QUAT-PLUS are used, both of which are recommended by public health authorities and Braskem Idesa’s medical service. For our contractors, we sanitize the areas to which they have access, such as offices, workshops and vehicles, and we have also set up disinfection stations equipped with disinfectant wipes and hand sanitizer. — 115 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION Support for Vulnerable Communities Emotional Support Line for Communities as a result of the COVID-19 Pandemic In April, we rolled out the Emotional Support Line for inhabitants from F1 communities (Pollo de Oro, Lázaro Cárdenas, Nahualapa), the goal of which is to provide tailor-made psychological support via a confidential hotline. We put up posters containing information about how to use the Emotional Support Line in coordination with healthcare workers from the communities. • Donation of food parcels to F1 communities (Pollo de Oro, Nahualapa and Lázaro Cárdenas) and the cleaning of public spaces. Support for Healthcare Professionals • Donation of hospital supplies to Health Centers, Emergency Center and Hospitals in the south-east of the state of Veracruz, as well as support during Vaccination Programs. — 117 — 5. Personal Protection Equipment (PPE) and Hygiene During the year, we continued some programs, including our emotional support line and the Sentirte Bien campaign, the goal of which is to promote the mental, As part of our health protocols, the use of Personal physical, social, workplace and personal wellness of our Protection Equipment (PPE) is obligatory within our Team Members and their families. facilities, which is why installed handwashing stations with antibacterial soap and paper towels, provisional handwashing facilities for outdoor spaces, and special containers for used disposable facemasks in order to promote hygiene measures throughout our complex. 100% of Team Members at our offices and complex receive COVID-19 protection kits. — 116 — 6. Communication and Wellness We remain committed to safeguarding the physical and emotional health of our Team Members, which is why, since the beginning of the pandemic, we rolled out our remote working model for all our Team Members and established clear communication through a number of different platforms: • BITV - Internal TV Channel • Printed Newsletter • Digital Newsletter (roundup of latest news sent via e-mail) • Mailings • Posters at our complex and administrative offices • Braskem Idesa View - Corporate Intranet • Quarterly Town Hall with our CEO and management team, during which we focused on key messages for the organization, in addition to monitoring the COVID-19 situation (cases within the company, prevention protocol, back-to-work plan, etc.). WE HAVE INVESTED more than USD $700,000 to safeguard the health of our Team Members, suppliers and contractors. Our Social Commitment We created a plan of action, as part of our Social Responsibility efforts, to tackle the COVID-19 pandemic last year. In 2021, we continued to focus on 2 main areas, concentrating our support in the south- eastern region of the state of Veracruz (Coatzacoalcos and Nanchital) and in Mexico City, the company’s area of social influence. Support for Vulnerable Communities Support for Healthcare Professionals THIS PROGRAM Prevenir is aligned with the United Nations Sustainable Development Goals (SDG) in the areas of Good Health and Well- being, and Partnerships for the Goals. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION CERTIFICATIONS AND AWARDS — 118 — — 119 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION Our achievements are the result of our on-going commitment and the hard work we put in every single day in order to achieve our goals. We always choose an ethical and transparent approach and contribute to the creation of value for society and the protection of the environment. In 2021, we received the following certifications and awards: • Ranked as one of the companies with Corporate Integrity Best Practices from the IC-500, published by Transparencia Mexicana and Expansión magazine (score of 98/100). • Ranked as one of the Most Ethical Companies by AMITAI Ética Empresarial and El Financiero. • Socially Responsible Company Award (ESR®) presented by the Mexican Center for Philanthropy (CEMEFI). • Braskem Idesa’s CEO, Stefan Lepecki, was ranked as one of the 300 Most Influential Leaders in Mexico by Líderes magazine. — 120 — • Annual Responsible Care® Certification in Comprehensive Responsibility Management System (SARI) from the Mexican Association of the Chemical Industry (ANIQ). • Comprehensive Responsibility Award 2021 in the categories of Water Use and Usability and Leading Verifier from the Mexican Association of the Chemical Industry (ANIQ). • CSR Best Practices in the category of Corporate COVID-19 Measures by the Mexican Center for Philanthropy (CEMEFI). • ISO 9001:2015 certification for our Quality Management System. • Alongside Braskem, we won the best sustainable project for our I’m Green portfolio from Chemical Week at IHS Markit. • Zero Pellet Waste Blue certification from the Industries Mexican Association of the Plastic (ANIPAC). • — 121 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] EARTH CHAPTER At Braskem Idesa, we are committed to sustainability through a number of initiatives, such as the Earth Charter, which we joined in 2017. It is a declaration of ethical principles that form the basis for the creation of a fair, sustainable and peaceful global society that focuses on the transition to sustainable lifestyles and human development, implementing its recommendations into our day- to-day operations. We support the principles and global alliance it proposes to help create a fair, sustainable and peaceful world. — 122 — — 123 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION This project began as a United Nations program, concluding in the year 2000 with the creation of the Earth Charter Commission, an international body that promotes compliance with these principles. The principles of this Charter are: — 124 — Respect and Care for the Community of Life Social and Economic Justice — 125 — Ecological Integrity Democracy, Nonviolence and Peace AT BRASKEM IDESA we believe in building a more sustainable society, which is why we support the statutes and regulatory body that represent the Earth Charter. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-47, 103-1] MATERIALITY In keeping with our commitment to sustainability, we are continuously developing projects that help mitigate environmental impacts, drive social and economic development within communities, create value and solutions for both our clients and the value chain, and, above all, continue being a benchmark for the plastic industry through good ethical, social and environmental practices. A key part of our day-to-day activities is our Global Sustainable Development Policy, which underpins the way in which we interact with our surroundings and, as a result, we have published this report, which uses the same materiality as our previous report. Through this process, and as a result of our on-going dialog with our stakeholders and an internal analysis, 17 of the 26 material issues identified were taken into consideration. We used the Comprehensive option to share these in an accurate, balanced, clear, comparable, reliable and timely manner. The results outlined in this report represent our commitment to being an ethical, valuable and transparent company, which is why, below, we have listed our material issues: • Water • Air • Customer Service • Biodiversity • Corruption • Financial Performance • Circular Economy • Employment • Energy • Training and Career Development • Corporate Governance • Equal Opportunities • Social Investment in Communities • Freedom of Association • Local Workforce • Complaint Procedures • Public Policies • Post-Consumption • Suppliers – Environmental Management • Local Suppliers • Non-Renewable Resources • Reporting and Publication • Waste • Health and Safety • Property Security • Transparency and Integrity — 127 — — 126 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS — 128 — — 129 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12, 102-47, 103-1] At Braskem Idesa, driving innovation and being at the cutting edge are part of our business DNA. Given the changes that have taken place in recent years through the renewal of the Sustainable Development Goals (SD), and in keeping with the new 2020-2030 Agenda, we have decided to focus our efforts on how best to contribute to achieving these goals. The first major change was to shift from 10 to 7 Macro Sustainable Development Goals, a process that involved more than 500 global leaders and Team Members from Braskem Brazil, United States, Europe and Braskem Idesa in Mexico to define these commitments. — 130 — From September 2020, these redefined commitments were included in our Global Sustainable Development Strategy by the Board of Directors as the result of a materiality study, a business risk management analysis covering the value chain and society in general, and the consideration of the elements of sustainable development: economic, social and environmental. We have reaffirmed our commitment to sustainability through these guidelines, which are helping to create projects focusing on the Circular Economy and Carbon Neutrality in order for us, in conjunction with our stakeholders, to build a more sustainable future. Our comprehensive sustainability strategy is aligned with the UN’s 2030 Agenda, the Sustainable Development Goals (SDG) and the Paris Agreement on Climate Change. For further information about our commitments, please click on the following link: http://www.braskemidesa.com.mx/macroobjetivos Braskem Idesa´s Macro Goals OUR PRIORITY SDG HEALTH AND SAFETY TEMÁTICA SOCIAL ENVIRONMENTAL FINANCIAL CORPORATE GOVERNANCE SUSTAINABLE INNOVATION FINANCIAL RESULTS — 131 — ELIMINATION OF PLASTIC WASTE SOCIAL RESPONSIBILITY AND HUMAN RIGHTS CLIMATE CHANGE OPERATIONAL EFFICIENCY Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-12, 102-46, 103-1] Furthermore, in order to both underpin and consolidate our commitments, we are aligned with the Global Reporting Initiative (GRI) (a guide to present our outstanding results and impacts), the Sustainability Accounting Standards Board (SASB – an index relating to our investors), and the Risk Rating issued by Sustainalytics, a ratings agency that measures a company’s sustainability based on its Environmental, Social and Governance performance (ESG). We are also aligned with the Task Force on Climate-Related Financial Disclosures (TCFD). ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12, 102-46, 102-53, 103-1] Material Issue 7 Macro Goals BI SDG GRI Content SASB Internal Externa Coverage Material Issue 7 Macro Goals BI SDG GRI Content SASB Internal Externa Coverage — 132 — Social Investment in Communities Energy Water Biodiversity Air Complaints Procedures Corruption Workforce 6 5 5 4 4 2,6 6 6 1,3,4,11, 13, 17 413-1, 413-2 7,13 302-1, 302-3, 302-4 6 303-1, 303-2, 303-3, 303-4, 303-5 14, 13, 15,17 304-3, 304-4 13 16 16 1,8 305-1, 305-2, 305-4, 305-7 413-1, 419-1 205-1, 205-2, 205-3 401-1 RT-CH-130a.1 RT-CH-140a.1 RT-CH-140a.2 RT-CH-140a.3 RT-CH-110a.1 RT-CH-110a.2 RT-CH-120a.1 RT-CH-210a.1 Health and Safety Financial Performance 1 2 3,8 403-1, 403-2, 403-3, 403- 4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10 8 201-1, 202-2 Circular Economy 3,4,7 11,12,13,14,17 301-1, 301-2, 301-3 ,306-2, 306-4 Corporate Governance Postconsumer Waste Transparency and Integrity 1,2,4,5,6,7 16 102-14,102-18 3 3 6 9,11,12,13,17 306-4 9,11,12,13,17 306-1, 306-2 16 102-16, 107-17, 103-1, 103- 2, 103-3, 406-1, 415-1 RT-CH-320a.1 RT-CH- 320a.2 RT-CH-530a.1 RT-CH-150a.1 — 133 — To learn more about it or if you have questions, suggestions or comments regarding the annual sustainability report, we put at your disposal the email of our Circular Economy and Sustainability area: sustentabilidad@braskem.com Braskem Idesa 2021 Sustainability Report— 134 — ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-55] GRI CONTENT INDEX — 135 — For Materiality Disclosures Service, GRI Services has reviewed that the GRI Content Index is clear and that the references for 102-40 a 102-49 contents correspond to the right sections of the report. The service was performed on the Spanish version of the report. GRI Standard Disclosure Tittle Page/Direct Response/URL Omission GRI 101: FOUNDATION 2016 GENERAL DISCLOSURES GRI 102: GENERAL DISCLOSURES 2016 1. Organizational profile 102-1 102-2 Name of the organization p. 5 Activities, brands, products, and services p. 16-21 102-3 Location of headquarters The Braskem Idesa Complex comprises 1 ethane cracker, 2 high-density (HDPE) and 1 low-density polyethylene plants (LDPE). Our corporate offices are located in Mexico City at Boulevard Manuel Ávila Camacho, 36, 24th floor. Col. Lomas de Chapultepec. CP 11000 México. The Complex is located at Carretera Nanchital-El Chapo, Km 3.5, Nanchital de Lázaro Cárdenas del Río, Veracruz. 102-4 102-5 102-6 102-7 102-8 Location of operations p. 16, 17 Ownership and legal form p.5 Markets served p. 16-21 Scale of the organization p. 16, 17, 21, 28, 48, 84, 85, 86 Information on employees and other workers p. 84, 85, 86 Due to our type of industry, we do not depend on these types of factors and having an automatized process, our workforce can be stable and in case of any variation, it could be due to some impact on the market. The data is consulted in our Be Ux system. 102-9 Supply chain 102-10 Significant changes to the organization and its supply chain p. 23 p. 7, 54 Braskem Idesa 2021 Sustainability Report ABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-55] [102-55] GRI Standard Disclosure Tittle Page/Direct Response/URL Omission 102-11 Precautionary Principle or approach p. 57-67, 90-93 102-12 External initiatives p. 123, 130, 132, 133, 144-155 102-13 Membership of associations p. 45 2. Strategy 102-14 Statement from senior decision- maker p. 8, 10 102-15 Key impacts, risks, and opportunities p. 8, 10 3. Ethics and integrity 102-16 102-17 — 136 — 4. Governance Values, principles, standards, and norms of behavior p. 14, 15, 34 Mechanisms for advice and concerns about ethics p. 38 102-18 Governance structure p. 35, 36, 37 5. Stakeholder engagement 102-40 List of stakeholder groups p. 24, 25, 26 102-41 102-42 102-43 102-44 Collective bargaining agreements p. 84 Identifying and selecting stakeholders p. 24, 25, 26 Approach to stakeholder engagement p. 24, 25, 26 Key topics and concerns raised p. 24, 25, 26 6. Reporting practice 102-45 102-46 Entities included in the consolidated financial statements p. 5, 7 Defining report content and topic Boundaries 102-47 List of material topics 102-48 Restatements of information 102-49 Changes in reporting 102-50 Reporting period 102-51 Date of most recent report 102-52 Reporting cycle p. 132, 133 p. 127, 130 p. 5, 7 p. 5, 7 p. 5, 7 p. 5, 7 p. 5, 7 GRI Standard 102-53 102-54 Disclosure Tittle Page/Direct Response/URL Omission Contact point for questions regarding the report p. 133 Claims of reporting in accordance with the GRI Standards p. 5, 7 102-55 GRI content index p. 135-143 102-56 External assurance p. 5, 7, 158-159 MATERIAL TOPICS GRI 103: MANAGEMENT APPROACH 2016 103-1 Explanation of the material topic and its Boundary p. 127, 130, 132, 133 This content covers the material topics: Economic Performance, Corruption, Circular Economy, Energy, Water, Biodiversity, Air, Workforce, Health and Safety, Social investment in communities and Mechanisims for complaints. Economic Performance GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components p. 50 Evaluation of the management approach p. 50 GRI 201: ECONOMIC PERFORMARNCE 2016 201-1 Direct economic value generated and distributed p. 50 GRI 202: MARKET PRESENCE 2016 202-2 Proportion of senior management hired from the local community Senior management comprises managers, directors, vice presidents and presidents. To calculate the number of directors from the local community (born in the same state in which they work), we use the number of people in senior management and their place of birth. This content is controlled in every country in which we operate, both in those with industrial plants and those with only commercial offices. Anti-corruption GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 38-43 p. 38-43 — 137 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-55] [102-55] GRI Standard Disclosure Tittle Page/Direct Response/URL Omission GRI 205: ANTI-CORRUPTION 2016 205-1 Operations assessed for risks related to corruption p. 38, 42, 43, 44 31 risks were analyzed, none of which were deemed significant. The main risks that are being monitored by the Company, to mention a few, are "Suppliers Negotiation Process", "Third-Party Management" and "Anti-corruption". 205-2 Communication and training about anticorruption policies and procedures p. 40, 41, 42 205-3 Confirmed incidents of corruption and actions taken — 138 — Circular Economy During 2021, there were no confirmed cases of corruption. A lack of knowledge surrounding the definition of the word “corruption” was identified, for which some reports with this classification were received; however, at the time of analyzing them, they were reclassified because they corresponded to other categories, such as Potential Conflicts of Interest, Complaints, Behavior, and Contract Compliance Issues. GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components p. 69-74 Evaluación del enfoque de gestión p. 69-74 GRI 301: MATERIALS 2016 301-1 301-2 Materials used by weight or volume p. 69, 72 Recycled input materials used p. 72 301-3 Reclaimed products and their packaging materials p. 72 a) For the packaging of bagged material in the logistics platform in 2021 the following consumption was had: Pallets: 190,360 pieces. FFS (bags): 1,243,250.98 kg. For the packaging of bagged material in OPL in 2021, the following consumption was had: Pallets: 39,383 pieces. FFS (bags): 254,880,988 kg. Post-Consumption GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 69-74 p. 69-74 GRI Standard GRI 306: WASTE 2020 Disclosure Tittle Page/Direct Response/URL Omission 306-1 Waste generation and significant waste-related impacts p. 69-74 The impacts caused are derived from both the production of Ethylene and polyethylene, as well as the packaging of raw materials. Also of the maintenance works to the equipment and processes of the personnel that works in the facilities. The waste generated is derived from Braskem Idesa internal operations, upstream it would be from the containers and packaging where the raw material and finished product are supplied. Management of significant waste- related impacts p. 69-81 306-2 Waste GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 64, 65 p. 64, 65 GRI 306: WASTE 2020 Waste diverted from disposal p. 64, 65 306-4 Energy GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 61, 62 p. 61, 62 GRI 302: ENERGY 2016 Energy consumption within the organization Energy intensity p. 61, 62 p. 61, 62 Reduction of energy consumption p. 61, 62 302-1 302-3 302-4 Water GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 59, 60 p. 59, 60 — 139 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-55] [102-55] GRI Standard Disclosure Tittle Page/Direct Response/URL Omission GRI 303: WATER AND EFFLUENTS 2018 303-1 303-2 Interactions with water as a shared resource Management of water discharge- related impacts p. 59, 60 p. 59, 60 303-3 Water withdrawal 303-4 Water discharge p. 59, 60 The water area extraction and consumption is not considered as a water stress area. P. 59, 60 b, c. This information is not available, since this analysis is not performed. d. Total phenols, benzene, toluene, ethylbenzene, xylenes, polychlorinated biphenyls, HAP, SAAM. iii. There have been no breaches. — 140 — 303-5 Water consumption p. 59, 60 Biodiversity GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 66, 67 p. 66, 67 GRI 304: BIODIVERSITY 2016 304-3 Habitats protected or restored p. 66, 67 IUCN Red List species and national conservation list species with habitats in areas affected by operations p. 66, 67 304-4 Emmissions GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 63, 64, 65 p. 63, 64, 65 GRI 305: EMISIONES 2016 305-1 Direct (Scope 1) GHG emissions p. 63 The calculation base year is 2019 verified under the RENE methodology, assigned directly by SEMARNAT. The emission factors adhere to the SEMARNAT statutes, which are published in March of each year, for 2021 the 2020 emission factors were used. 305-2 Energy indirect (Scope 2) GHG emissions p. 63 GRI Standard 305-4 305-6 305-7 Workforce Disclosure Tittle Page/Direct Response/URL Omission GHG emissions intensity Emissions of ozone-depleting substances (ODS) Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions p. 64 p. 64 p. 64 GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 85, 86 p. 85, 86 GRI 401: EMPLOYMENT 2016 401-1 New employee hires and employee turnover p. 85, 86 Occupational health and safety GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 90, 91 p. 90, 91 GRI 403: OCCUPATIONAL HEALTH AND SAFETY 2018 403-1 403-2 Occupational health and safety management system Hazard identification, risk assessment, and incident investigation p. 90-93 p. 90-93 403-3 Occupational health services p. 90-93 403-4 403-5 403-6 403-7 Worker participation, consultation, and communication on occupational health and safety Worker training on occupational health and safety p. 90-93 p. 90-93 Promotion of worker health p. 90-93 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships p. 90-93 — 141 — Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-55] [102-55] GRI Standard 403-8 Disclosure Tittle Page/Direct Response/URL Omission Workers covered by an occupational health and safety management system Braskem Idesa has a flowchart for classifying industrial safety incidents and reporting, classifying, investigating, and communicating HSE incidents. We have 939 members, who are 100% covered under this system. 403-9 Work-related injuries 403-10 Work-related ill health Social Investment in Communities GRI 103: MANAGEMENT APPROACH 2016 In 2021, there were no deaths, making the death rate equal to 0 and there were no disabling incidents (LTI/ CAF). In 2021, there were no deaths resulting from any work- related ailment or illness and no occupational ailments or illnesses were identified. 103-2 103-3 — 142 — The management approach and its components Evaluation of the management approach p. 94, 95, 96 p. 94, 95, 96 GRI 103: MANAGEMENT APPROACH 2016 413-1 413-2 Operations with local community engagement, impact assessments, and development programs p. 94-111 Operations with significant actual and potential negative impacts on local communities Braskem Idesa has no operations with significant real or potential negative impacts. Complaint Procedures GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 41 p. 41 GRI 419: GRI 419: SOCIOECONOMIC COMPLIANCE 2016 419-1 Non-compliance with laws and regulations in the social and economic area Braskem Idesa has not had any sanctions or fines for non-compliance with regulations on social or economic issues. Likewise, Braskem Idesa received reports on potential laws and regulations breaches, however, it was confirmed that they were unfounded. GRI Standard Disclosure Tittle Page/Direct Response/URL Omission Transparency and Integrity GRI 103: MANAGEMENT APPROACH 2016 103-2 103-3 The management approach and its components Evaluation of the management approach p. 41, 87, 88, 89 p. 41, 87, 88, 89 GRI 406: NON-DISCRIMINATION 2016 406-1 Incidents of discrimination and corrective actions taken p. 87, 88, 89 GRI 415: PUBLIC POLICY 2016 415-1 Political contributions — 143 — Braskem Idesa does not make political contributions, the "Lobbying and Political Contributions Procedure" establishes that the Team Members understand that it is forbidden to promise, offer, authorize or give, directly or indirectly, political contributions to political parties or candidates for public office on behalf of our organization. Also, interactions with public officials are internally regulated by the Public Agent Relationship Guideline DE 1110-00003 MX, which compliance is supervised by a Committee made up of the Legal Department, the Compliance epartment and the Institutional Relations Department, which quarterly meets and follows up the internal control tool. The Braskem Idesa Compliance and Corporate Governance Guidelines and Policies are public on the web portal: https:/www.compliancebraskemidesa. com.mx/ Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-12] SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) Code Topic Accounting metric Unit of measure Page / direct response ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] — 144 — rT-CH-110a.1 Greenhouse Gas Emissions Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations Metric tons (t) CO₂-e, Percentage (%) Emissions Total Emissions 1,835,509 tCO2e 1,841,278 tCO2e 1,661,668.64 tCO2e 2019 2020 2021 Scope 1 (Fixed and mobile fuel combustion) Gases: CO2, CH4, N2O, HFC Scope 2 (Company’s use of electrical energy) Gases: CO2, CH4, N2O, HFC. 1,776,776 tCO2e 1,821,395 tCO2e 1,487,978.37 tCO2e 58,732 tCO2e 19,883 tCO2e 173,690.27 tCO2e — 145 — We comprehensively comply with all regulations issued by environmental authorities by measuring our air emissions by gas type - NOx, SOx, COV, CO2, CH4, N2O, HFC, PM and other categories (Cr). Emissions by Gas Type Emissions by Gas Type 2019 (Ton) 2020 (Ton) NOx SOx Volatile Organic Compounds (VOC) Particulate Matter (PM) 1,195 36.8 21.5 10.8 Other Categories (Cr) 0.000204 752.21* 17* 67.24** 18.1** 0.0002 2021 (Ton) 693.25 3.8 391 25.3 0.0001 Part of our environmental strategy during 2022 will focus on involving the value chain in the creation of measures that help mitigate climate change. Through our Carbon Disclosure Project (CDP), we work alongside our business partners to create incentives for them to commit to protecting the environment. Some of our major areas of action include: • Identifying opportunities to decrease costs, emissions, and energy use through periodic assessments. • Driving awareness campaigns to provide incentives for business partners to implement measures to mitigate their environmental footprint. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-12] Code Topic Accounting metric Unit of measure Page / direct response ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] — 146 — RT-CH-110a.2 Greenhouse Gas Emissions 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 N/A 1. Short- and Long-Term Strategy Analysis: As part of our strategy, we comply with all regulations issued by the Department of the Environment and Natural Resources (SEMARNAT) and the Department of Energy (SENER), in addition to the Material and Energy Balance Methodology, monitoring all emissions stemming from our operations. We are also governed by a Global Development Policy that encompasses 7 Macro Sustainability goals, including climate change, operational efficiency, and actions and goals to help mitigate, reduce or capture GHG. The Greenhouse Gas Legal Framework we follow encompasses the following: • Climate Change Act, Regulations of the Climate Change Act for the National Emissions Registry (RENE), GHG Report for Annual Operating Cell (COA), GHG Calculation Methodologies, CO2 Emission Direct Measurement Methodology. • Annual GHG emissions reports and verification for the National Emissions Registry (RENE). • Emissions Trading System Program (SCE). 2. Emission Reduction Goals — 147 — Based on the Climate Change Act, the overall contribution to reducing GHG emissions from the chemical and petrochemical industry stands at 5% by 2030. As Braskem Idesa, our goal lies in: 1) Identifying projects to reduce, mitigate or capture CO2; 2) Driving energy efficiency in our operations; 3) Consolidating waste management; 4) Identifying renewable energies; 5) Participating in Emissions Trading; 6) Assessing the acquisition of an Energy Efficiency Certificate for the petrochemical complex. Additionally, Grupo Braskem has made a public global commitment through its operations in Brazil, the United States, Europe and Mexico to reduce GHG emissions by 15% before 2030, in addition to becoming carbon neutral by 2050. 3. Analysis of results vs. goals Regarding emissions by gas type in our operations, there was a decrease in 2021 compared to 2020 as a result of the following actions: 1) Equipment maintenance, the use of natural gas instead of ethane gas for energy generation, and operational efficiency stemming from the cutting-edge technology employed at the complex We measure our air emissions by type of gas, considering NOx, SOx, VOC, CO2, CH4, HFC, PM and other categories such as Cr. 2) Emission reduction targets 3)Analysis of the results in relation to objectives Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] [102-12] Code Topic Accounting metric Unit of measure Page / direct response RT-CH-120a.1 Air Quality Air emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs), and (4) hazardous air pollutants (HAPs) Metric tons (t) — 148 — We measure our emissions by gas type, taking into consideration NOx, SOx, COV, CO2, CH4, HFC, PM and other categories (Cr). Emissions by Gas Type Emissions by Gas Type 2019 (Ton) 2020 (Ton) 2021 (Ton) NOx SOx Volatile Organic Compounds (VOC) Particulate Matter (PM) 1,195 36.8 21.5 10.8 Other Categories (Cr) 0.000204 752.21* 17* 67.24** 18.1** 0.0002 693.25 3.8 391 25.3 0.0001 * Changes are a result of equipment maintenance, representing a decrease compared to 2019. ** Significant changes are a result of the use of ethane gas as a fuel during the month of December. 1) Total energy used in 2021 reached 23,662,476.36 GJ (2) Percentage of energy from the grid. (3) Percentage of renewable energy, No energy from renewable sources was used. (4) Total self-generated energy — 149 — RT-CH-130a.1 Energy Management 1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total self-generated energy 2 Gigajoules (GJ), Percentage (%) We have a natural gas cogeneration plant that provides energy to our Petrochemical Complex and helps mitigate our environmental impact. The following table the result was: Electricity Used Electricity Sold Intensity Ratio* 2020 2021 659,178 MWh 147,050 MWh 624,607 MWh 50,909 MWh** 14 GJ 14 GJ We used 362,836-368GJ of electricity from the grid and exported 183.273.228 GJ. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-12] Code Topic Accounting metric Unit of measure Page / direct response ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] (1) Total water extracted. We extract surface water from the Uxpanapa River which is transported from the dam to our petrochemical plant through our pumping plant. We clarify the water for its subsequent distribution and use, mainly to replace cooling water or to generate steam. Below are the total water extraction indicators for 2021 in each area (in m3) and the breakdown based on the following sources: Surface Water = 8,302,208.00 m³ i. ii. Ground Water = 0.0 m³ ground Water iii. Seawater = 0 m³, seawater is not used) iv. Produced Water = 0 m³, no water is produced v. Water from Third Parties = 0 m³, wastewater is not treated Thousand cubic meters (m³), Percentage (%) (2) Total water used - percentage of each region with high or extremely high initial water stress. Our greatest water demands come from our production processes, mainly our refrigeration and steam generation systems. Below is a comparison of total water use:(Note: The water extraction area and consumption is not considered as a water stress area). — 151 — Total Water Use Wastewater Recycled Water 8,667,077 m³ 1,425,950 m³ 1,578,544 m³ 8,374,405 m³ 1,098,580 m³ 914,281 m³ Percentage of Water Recycled 18.21% 10.89% 2020 2021 Number Braskem Idesa had no compliance issues relating to water quality regulations, standards and permits. Description of water management risks and discussion of strategies and practices to mitigate those risks N/A 1) Description of Risks 2) Strategy Analysis and Mitigation Practices • We guarantee our water discharges comply with the 2018 Coatzacoalcos River Declaration, implementing a wastewater discharge system that ensures the river’s capacity is not exceeded, in addition to permitting natural degradation and tributary recovery. • We carry out biannual monitoring of groundwater and surface water within the communities surrounding our plant. • We extract surface water from the Uxpanapa River, which is transported from the dam to our petrochemical plant through our pumping plant. • We clarify the water for its subsequent distribution and use, mainly to replace cooling water or to generate steam. The water is subjected to a process of chlorination, clarification and filtration for its distribution and is mainly used to replenish the cooling water system and for steam generation. RT-CH-140a.1 — 150 — (1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress Water Management Number of incidents of non- compliance associated with water quality permits, standards, and regulations RT-CH-140a.2 RT-CH-140a.3 Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] [102-12] Code Topic Accounting metric Unit of measure Page / direct response RT-CH-150a.1 Hazardous Waste Management Amount of hazardous waste generated, percentage recycled Metric tons (t), Percentage (%) — 152 — RT-CH-210a.1 Community Relations Discussion of engagement processes to manage risks and opportunities associated with community interests RT-CH-320a.1 Workforce Health & Safety (1) Total recordable incident rate (TRIR) and (2) fatality rate for a) direct employees and b)contract employees N/A Rate Below is a comparison between 2020 and 2021 of all hazardous waste generated (metric tons) and the disposal method used: Waste Elimination Method 2020 2021 Reuse (Ton) Recycling (Ton) Landfill (Ton) Others (Ton) Total (Ton) 59.7 241.4 0 * 27.8 1.76 4.2 2,415 789.7 2,476 1,063.1 *There was no reuse derived from the fact that they went to “Another type of management” At Braskem Idesa, the key policies (internal and regulatory) on local communities are international standards, the Performance Standards (ND) of the International Finance Corporation (IFC), as well as the Recommendations about Common Approaches to the Environment (AE) of the Organization for Economic Co-operation and Development (OECD) and with the Operational Directives (OD) of the Inter-American Development Bank (IDB). We voluntarily assume the national regulations on a Socially Responsible Company SCR by Centro Mexicano de la Filantropía (CEMEFI), where the behaviour of the organization based on values is evaluated, and the commitment to address the impact of the activities and decisions of its stakeholders, to maintain the social license to operate. Likewise, Braskem Idesa has a management program that has been implemented since the beginning of construction in 2011 and that has been evolving based on the needs of the business and the interested parties. — 153 — The means by which Braskem Idesa addresses risks and impacts about stakeholders are: The grievance and complaint mechanism, with different communication channels: mailbox, telephone, visits to communities and community mail, quejascomunitarias@braskem.com, In addition to the different engagement forums, the social traffic light is updated where possible risks are identified, official notices of an event, crisis committee, use of Braskem Idesa’s social networks. With other organizations we have: health committees, meetings with municipal authorities, a local mutual aid committee to talk with companies in the region on safety issues and good practices. (1) Total Recordable Incident Rate (TRIR) In 2021, there were no recordable incidents (TRIR). (2) Morality Rate: a. Direct Employees: There were no deaths in 2021 as a result of workplace accidents or illnesses. b. Employees under Contract: There were no deaths in 2021 as a result of workplace accidents or illnesses. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-12] Code Topic Accounting metric Unit of measure Page / direct response ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-12] All contractors and Team Members who work at our complex receive training in the following areas: SHE Induction, Identification of Risks, Hazardous Substances and PPE (Personal Protection Equipment), Risk Communication System (GHS), Waste Management, Emergency Response Plan, Work Permits / Job Safety Analysis (JSA). RT-CH-320a.2 Workforce Health & Safety Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term (chronic) health risks N/A — 154 — They also receive training based on their functions, including: • Confined Spaces. • Work at Heights • Hot Work and Work with Energized Equipment. • Hazardous Energy Isolation (PAEP). • Work with Energized Equipment • Hydro Jetting. • Blasting. • Others. In order to develop prevention measures to guarantee the security of all our operations, while, at the same time, improving the Occupational Health and Safety Management System, we have implemented a Work Permit Audit system that includes Job Safety Analysis (JSA) and Preliminary Hazard Analysis (PHA) for Services, in addition to complying with STPS standards. — 155 — During the assessment process for this new System, we asked our Team Members and contractors for feedback: 1. Monthly Safety Inspections. 2. Communication of Lessons Learned. 3. Contractor Training. (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 assessment Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/or environmental impact Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Incident Severity Rate (PSISR) RT-CH-410b.1 RT-CH-410b.2 RT-CH-540a.1 Safety & Environmental Stewardship of Chemicals Operational Safety, Emergency Preparedness & Response Percentage (%) by revenue, Percentage (%) Not a material issue for Braskem Idesa N/A Not a material issue for Braskem Idesa Number, Rate Industrial Safety 2021: 1) Recordable Rate (CAF + SAF): 0.45 2) CAF Rate: 0 3) Severity Rate: 0 Process Safety 2021: 1) 2) 3) TIER 1 Rate: 0 TIER 2 Rate: 0.23 Severity Rate: 0 RPsychological Process Safety Incident Control (PSIC) RT-CH-540a.2 Number of transport incidents Number Not a material issue for Braskem Idesa Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION RECOMMENDATIONS In alignment with the Task Force on Climate-related Financial Disclosures TCFD standard that was created in 2015 by the Financial Stability Board (FSB) in order to encourage companies to share information with their investors related to climate change and how they manage their efforts; at Braskem Idesa, assuming our commitment, we have begun to report in line with the standard and we will work to attend this organism recommendations. Recommendatios Recommented report Code Page/s Recommendatios Recommented report Code Page/s — 156 — Governance a) Describe the board’s oversight of climate-related risks and opportunities. GOB-A P. 58, 130, 131, 132, 133 b) Describe management’s role in assessing and managing climate-related risks and opportunities. GOB-B P. 35, 36, 37, 58 a) Describe the climate-related risks and opportunities the organization has identified over EST-A the short, medium, and long term. P. 58, 130, 131, 132, 133 b) Describe the impact of climaterelated risks and Strategy opportunities on the organization’s businesses, EST-B P. 8, 10, 48 strategy, and financial planning. c) Describe the resilience of the organization’s strategy, taking into consideration different climate- EST-C P. 8, 10, 48 related scenarios, including a 2°C or lower scenario a) Describe the organization’s processes for identifying and assessing climate-related risks. Risk Management b) Describe the organization’s processes for managing climate-related risks. — 157 — GDR-A GDR-B P. 58, 130, 131, 132, 133 P. 58, 130, 131, 132, 133 c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. GDR -C P. 58, 130, 131, 132, 133 a) Disclose the metrics used by the organization to assess climaterelated risks and opportunities in line with its strategy and risk management process. MYO-A P. 57-81 Metrics and Targets b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. MYO-B P. 63-65 c) Describe the targets used by the organization to manage climate-related risks and opportunities and MYO-C P. 58, 130, 131, 132, 133 performance against targets. Braskem Idesa 2021 Sustainability ReportABOUT THIS REPORT LETTER FROM THE CEO CORPORATE PROFILE CORPORATE GOVERNANCE AND COMPLIANCE FINANCIAL PERFORMANCE ENVIRONMENTAL PERFORMANCE SOCIAL PERFORMANCE COVID-19 SUPPORT PROGRAMS CERTIFICATIONS AND AWARDS EARTH CHARTER MATERIALITY [102-56] VERIFICATION LETTER ALIGNMENT WITH GLOBAL SUSTAINABILITY STANDARDS GRI, SASB CONTENT INDEX AND VERIFICATION [102-56] — 158 — Verification Letter of the Braskem Idesa 2021 Integrated Report Annual Sustainability -ESG Report 2021 To Board of Directors of Braskem Idesa SAPI (Investment Promotion Corporation) and Braskem Idesa Servicios S.A de C.V. : We inform you that Timberlan Online Social Networks carried out a limited and independent verification of a sample of contents of the GRI Standards and topics of the Sustainability Reporting Standards Board (SASB), contained in the Annual Sustainability Report - ESG 2021 of Braskem Idesa (SAPI) And Braskem Idesa Servicios S.A. of C.V. (Braskem Idesa). Responsibilities, criteria and scope: The scope of our verification covered the results of "Braskem Idesa", corresponding to the period from January 1st to December 31st, 2021. Our mission is to issue impartial and objective opinions about the certainty, traceability and reliability of a sample of GRI and SASB Contents published in the Annual Sustainability Report ESG-2021. Our work considered as criteria: GRI Standards, in accordance with the Essential option, the SASB “Chemical” standards, and the International Standard on Assurance Engagements (ISAE) 3000, “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information”. “Braskem Idesa” is responsible for the preparation of the information contained in the Annual Sustainability Report – ESG 2021, and that included in the scope of the verification, which implies, but is not limited to: the selection process of material topics, report of contents of the GRI Standards and SASB topics. Among the activities carried out during the verification process are listed: validation of information presented in previous reports, review of methodological compliance with the aforementioned standards, verification of qualitative and quantitative data through visual, documentary and public evidence and analysis of the quantitative data. Therefore, we can conclude that during the review of the sample of GRI and SASB content published in the Annual Sustainability Report - ESG 2021, we did not find any factor that makes us think that the data does not comply with certainty, traceability and reliability. Likewise, we did not identify any element that would lead us to consider that the methodological requirements were not met. An internal report of recommendations, exclusive to “Braskem Idesa”, is delivered separately, containing the areas of opportunity detected. Alma Paulina Garduño Arellano Redes Sociales en Línea Timberlan S.A. de C.V. Pico Sorata 180, Jardines en la Montaña, Tlalpan, C.P. 14210, CDMX. paulina@redsociales.com T. (55) 54 46 74 84 July 15th, 2022 Declaration of independence and competence of Redes Sociales en Línea Timberlan Timberlan Online Social Networks employees has the level of competence necessary to verify compliance with the standards used in the preparation of Sustainability Reports, so they can issue a professional opinion on the reports of non-financial information, complying with the principles of independence, integrity, objectivity, competence and professional diligence, confidentiality and professional behavior. In no case can our verification statement be understood as an audit report, so no responsibility is assumed for the management and internal control systems and processes from which the information is obtained. This Verification Letter is issued on July 15th, 2022 and is valid as long as no subsequent and substantial modifications are made to the Braskem Idesa Integrated Report Annual Sustainability -ESG Report 2021. GRI Standards Disclosures SASB - CHEMICALS 102-1 Name of the organization 102-2 Activities, brands, products, and services 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 102-8 Information on employees and other workers 102-9 Supply chain 102-10 Significant changes to the organization and its supply chain 102-11 Precautionary Principle or approach 102-12 External initiatives 102-13 Membership of associations 102-14 Statement from senior decision-maker 102-15 Key impacts, risks, and opportunities 102-16 102-17 Values, principles, standards, and norms of behavior Mechanisms for advice and concerns about ethics 102-18 Governance structure 102-40 List of stakeholder groups 102-41 Collective bargaining agreements 102-42 Identifying and selecting stakeholders 102-43 Approach to stakeholder engagement 102-44 Key topics and concerns raised 102-45 Entities included in the consolidated financial statements 102-46 Defining report content and topic Boundaries 102-47 List of material topics 102-48 Restatements of information 102-49 Changes in reporting 102-50 Reporting period 102-51 Date of most recent report 102-52 Reporting cycle 102-53 Contact point for questions regarding the report 102-54 Claims of reporting in accordance with the GRI Standards 102-55 GRI content index Ezqualo Laboratorio Creati- vo S.A. de C.V. GRI Standards Disclosures SASB - CHEMICALS Governance 201-1 Direct economic value generated and distributed 205-2 Communication and training about anti- corruption policies and procedures 415-1 Political contributions 419-1 Non-compliance with laws and regulations in the social and economic area Social 401-1 New employee hires and employee turnover 403-9 Work-related injuries RT-CH-320a.1: Workforce Health & Safety: 1) Total recordable incident rate (TRIR) 2) Fatality rate for a) direct employees and b) contract employees. 403-10 Work-related ill health 413-1 Operations with local community engagement, impact assessments, and development programs Environment — 159 — 301-2 Recycled input materials used 302-1 Energy consumption within the organization 302-3 Energy intensity 303-3 Water withdrawal 303-5 Water consumption 304-3 Habitats protected or restored 305-1 Direct (Scope 1) GHG emissions 305-2 Energy indirect (Scope 2) GHG emissions RT-CH-130a.1. Energy management: a) Energy consumption. RT-CH-140a.1: Water management: b) Total water withdrawn RT-CH-140a.1: Water management: a) Total water consumed RT-CH-110a.1. Greenhouse Gas Emissions: a) Gross global Scope 1 emissions. b) Long-term and short-term strategy or plan to manage Scope 1 emissions. RT-CH-110a.1. Greenhouse Gas Emissions: a) Gross global Scope 1 emissions. b) Long-term and short-term strategy or plan to manage Scope 1 emissions. RT-CH-150a.1. Hazardous Waste Management: Amount of hazardous waste generated, percentage recycled. Braskem Idesa 2021 Sustainability ReportCREDITS Braskem Idesa Coordination of the Report: Mariana Albarrán Flores– Circular Economy, Sustainability and Social Responsibility Support from the areas for the construction of this Report: Corporate Profile Cleantho Leite- Director of Business Development, Institutional Relations and Energy César Rangel García- Institutional Relations Sergio Plata Azpilcueta - Institutional Relations and External Communication Corporate Governance and Compliance Diana Rodríguez Torres- Legal Director Filipe Alves Tavares- Legal Claudia Dávila Silva- Compliance Desempeño Económico Danilo Dias- CFO Eduardo Lopes Junqueira- Management Performance & Mkt Intelligence Fani Medrano Vázquez- Controlling & Risks Francisco Álvarez Razo- Commercial Performance Management & MKT Intelligence Hugo Ricardo Mac Dougall- Ethane Terminal Project (TQPM) Ruben Hernandez Gallegos – Ethane Terminal Project (TQPM) Social Performance and Support Program against Covid-19 Yordan Nadav Wertman– People and Organization Director Francisco Pérez Quijano- People and Organization Mónica Cervantes Amezquita- People and Organization Mariana Albarrán Flores– Circular Economy, Sustainability and Social Responsibility Cecilia Lorméndez López- Social Responsability Environmental Performance Roberto Velasco Gutierrez - Industrial Director Ana Luisa Martínez López – SSMA Carlos Humberto García Ibarra- Process Engineering Jorge Luis Cabrera Amador - Process Engineering Marcio Marino- Supply Chain Mexico Director Jesús Mar Robles – Logistic Operations Miguel Angel Rios Valencia - Planning and Logistic Contracts Commercial and Circular Economy Alfredo Prince- Commercial Director Antonio Augusto Quadro- PCR Manager Mariana Albarrán Flores– Circular Economy, Sustainability and Social Responsibility Luis Javier Salinas Aguilar – PCR Coordinator Design Yeraseth Bello Quijano- Institutional Marketing Grizel Valdes -Institutional Marketing McBride SustainAbility Consultancy Jesús Martínez Rojas Javier Pineda Rioja DDMERC Design Emma L. Chávez Velázquez Review and Verification in GRI Standards and SASB: Paulina Garduño Arellano - Redes Sociales Rosa María Barojas Vargas - Redes Sociales Photography: Jagos Producciones SAS Brand Center Braskem Idesa Ezqualo Laboratorio Creativo S.A. de C.V. www.braskemidesa.com.mx 

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