Braskem S.A. Annual Report 2022

Plain-text annual report

Presentation For the third consecutive year, we present our Integrated Report prepared based on the Integrated Reporting Framework (IR) principles and bringing together relevant GRI and SASB indicators to our stake- holders – shareholders, investors, team members, customers, suppliers, partners, government and society. With this, we reinforce Braskem’s commitment to transparency by publishing concise and measur- able information, endorsed by best practices in corporate governance and sustainability. In the following pages are the results of a business strategy that is build to be increasingly more integrated with our sustainable development and innovation goals – key strategic pillars that drive the growth of the company and its continuous improvement. Good reading! Summary Message from the business leader 3 Message from the chairman of the Board of Directors Highlights from 2022 Braskem Our value chain Our products Company's strategy Value creation strategy Business model Ecosystem Intelius: global performance management Our sustainability journey Materiality matrix Sustainable development commitments 6 8 9 11 12 13 14 15 16 17 18 19 20 Governance, ethics and compliance Governance structure Compliance system Ethical conduct Risk management Capital performance Human Capital Social and Relationship Capital Financial Capital Natural Capital Manufactured Capital Intellectual Capital About the Report SASB content summary GRI content summary 26 27 29 31 32 34 35 43 54 57 74 79 84 86 89 Assurance Letter 110 Message from the business leader GRI 2-22 At Braskem, we understand sustainable development as the way to transform our way of doing business. Thus, since our creation, we have sought to mitigate negative impacts and enhance the positive ones through innovative and sustainable chemical and plastic solutions to improve people’s lives. In 2022, we significantly advanced in this journey from the re- vision of our corporate strategy, consolidating as our strategic pillars sustainability and innovation – both fundamental to en- able the projects and initiatives related to our growth avenues: the ambition to expand, in a sustainable manner, the renewable, recycled, and traditional petrochemicals businesses. Expanding leadership in renewable raw materials We are pioneers and global leaders in the production of plastics made from renewable sources. We currently have the capacity to produce 200,000 tons per year of green ethylene, a chemical product made from sugarcane ethanol, which is the raw material to produce poly- ethylene under the I’m green™ brand. At the time, the investment was a bet to combat climate change in the chemical and plastic industry, whose success is currently perceived by the growing demand from our customers for this product line. Our growth avenues are linked to the commitments we made in 2020, which aim to address society’s global con- cerns in the long term. Among them, we have defined the elimination of plastic waste, the fight against cli- mate change, and social respon- sibility, including the promotion of human rights, as central themes for our actions. This early move put us in the lead in the production of polymers made from renewable raw materials and allowed us to acquire increased knowledge of the operation. Thus, last year we reached 95% utilization of green ethylene production capacity and commercialized about 179,000 tons of I’m green™ polyethylene. Roberto Bischoff Business leader of Braskem 3 Mensagem do líder de negócioMessage from the chairman of the Board of DirectorsHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryMessage from the business leaderIntegrated Report 2022In 2022, we increased sales of products with recycled content by 144%. By 2030, we are committed to expanding our bioproduct production ca- pacity to 1 million tons. We achieved important advances in this front during the year: we progressed with the expansion of the current green ethylene production unit to 260,000 tons, which is expected to be concluded in 2023, and we launched a joint venture with Sojitz for the production and commercialization of monoethylene glycol and mono- propylene glycol made from renewable raw materials. Called Sustainea, the joint venture is the result of many years of research and develop- ment in this technological journey. Closing the loop of our products We are betting on an increasingly circular business model that can rein- sert our products into the value chain and avoid the inadequate disposal of plastic waste. To this end, we challenge ourselves to expand to 1 mil- lion tons the commercialization of resins and chemicals with recycled content, as well as to recover 1.5 million tons of plastic waste by 2030. Thus, in 2022 we launched a new circularity ecosystem, Wenew, in order to consolidate and strengthen all our action fronts, such as circular products (resins and chemicals), environmental education and proper disposal initiatives, technologies, and circular design. The implemented actions already show important results: we reached 40 grades of resins with recycled content in our portfolio and 42 grades under develop- ment. In addition, we sold 54 thousand tons of resins and other products with circular characteristic and recovered 33.5 thousand tons in plastic waste through investments and partnerships in new businesses, socio- environmental programs, and industry alliances. To boost the performance in this theme, we move forward with new in- vestments to develop the plastic chain and leverage recycling. Thus, in february 2023, we completed the process of acquiring shares and sub- scribing to new shares issued by Wise Plásticos S.A., a company in the mechanical recycling sector focused on polypropylene (PP) resins. We also announced the creation of a joint venture with ER Plastics, a dutch company, which uses an innovative technology that converts low-quality plastic waste into final products. In the United States, we acquired a mi- nority stake in Nexus Circular, a chemical recycling company. Growth with a focus on climate change We are committed to reaching 2030 with an absolute 15% reduction in greenhouse gas emissions (GHG) from our production processes and from energy purchases, and to achieving carbon neutrality by 2050. Thus, anchored in the corporate strategy, our actions aim to achieve these commitments. To guide the way toward the commitments made, we performed an analysis of potential projects based on the development of a Marginal Abatement Cost Curve (MAC Curve) for GHG emissions. The result was the mapping of more than one hundred projects, among energy effi- ciency initiatives, renewable energy procurement, carbon capture and conversion, and expansion of the renewable raw materials base. The projects mapped by the curve have the potential to reduce up to 3.4 mil- lion tons of CO₂e. The mapped projects were prioritized and are being managed within the industrial decarbonization program, responsible for implementing cul- tural change, governance, and processes in the operations environment, as well as investment projects for the reduction of emissions. Among them are the partnerships for the acquisition of renewable elec- tricity globally. In Brazil, we contracted more than 220 average mega- watts of renewable energy based on wind and solar with an average duration of 20 years, which represents approximately 40% of the volume of energy consumed by Braskem in the country. The agreements began to be signed in 2018, with the largest one coming in 2022, and allowing to avoid the emission of 3.3 million GHG tons during the course of the con- tracts. The volume of energy contracted would be enough to meet the residential consumption of a city of 2.8 million inhabitants. In the United States and Europe we also had important advances in renewable energy. We are also joining with partners to introduce technologies that accel- erate the energy transition of our petrochemical complexes. Thus, we have advanced in an important partnership with Coolbrook, which aims to plan a pilot project for the electrification of crackers, allowing us, in the future, to use electricity supplied by renewable sources in one of the main links of our operation. 4 Message from the chairman of the Board of DirectorsHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryMessage from the business leaderIntegrated Report 2022Values that drive us People are the basis of our operating strategy. Therefore, we believe that it is only possible to advance in our commitments for sustainable development by ensuring people's safety, ethical conduct, and the rights of all those who are part of our value chain. To guide our path in this direction, we base ourselves on the assessment of the human rights risks to which our operations and value chain are exposed, a process that helps us achieve our commitment of managing 100% of the risks related to this topic by 2030. This past year we conducted this analysis for the second time and, as a result, we identified that 96% of the potential risks already have medium or high manage- ment by Braskem (for example, for the issues related to the image of plastic). For the points not yet cov- ered, we are elaborating new action plans. With regard to people, it is important to highlight our continuous support to families affected by the geological event in some neighborhoods of the city of Maceió (Alagoas-AL) in 2018. Throughout 2022, we maintained our work established in the Socio- environmental Agreement, signed on December 30, 2020, with the Federal Public Prosecutor's Office, to repair, mitigate or compensate potential environ- mental and socio-urban impacts arising from rock salt extraction activities. We also continue to evolve in our operations with the human reliability journey, which aims to reduce expo- sure to human error that can create an environment prone to accidents. We conducted 1,200 trainings ses- sions on this theme globally, including employees and service providers. At the end of the year, we reached a rate of 0.85 accidents with and without lost time per million hours worked, a result aligned with the year 2021. Also, this year, we carried out the first editions of cen- suses: one for self-identification of race and ethnicity and another for self-declaration of people with dis- abilities. This is an important initiative, because this assessment allows evolving towards a more effective diversity strategy, equity, and inclusion. In terms of gender diversity, we achieved record participation of women in leadership, with 33% in 2022 compared to 31% the previous year. Discipline and value creation These actions were accompanied by the company’s operational and financial performance that re- mained solid throughout the year through its robust financial strategy, with consistent operational cash generation, financial health, and discipline in capital allocation. In 2022, the result was impacted by the drop in petrochemical spreads in the international market and the lower sales volume due to the lower demand because of the macroeconomic scenario. Thus, we closed the year with a recurring EBITDA of US$2.1 billion, 64% lower than in 2021. Recurring cash generation was R$6 billion, with an 18% return on cash flow. Additionally, the corporate leverage, in dollars, was 2.42x. It is worth mentioning that the risk rating agencies S&P and Fitch reaffirmed Braskem’s investment grade by maintaining the rating at BBB-, with a stable outlook. These results reinforce our commitment to efficient capital allocation and return to shareholders. It is worth mentioning that during the year we invested US$149 mil- lion in projects aligned with Braskem’s long term commitments for sustainable development. Among the main projects are the expan- sion of green ethylene capacity, CO₂e emission reduction and energy efficiency initiatives at the plants, and the construction of the high- quality post-consumer resin recycling line in Brazil. Strength and resilience Our business strategy seeks to balance investment decisions and cap- ital allocation with a focus on sustainability, ensuring shareholder re- turn during the petrochemical cycles. The year 2023 will be challenging, but Braskem is prepared, and the defined strategy will guide the com- pany to focus and prioritize its initiatives, generating positive impacts for all stakeholders. Roberto Bischoff Business leader of Braskem 5 Message from the chairman of the Board of DirectorsHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryMessage from the business leaderIntegrated Report 2022Message from the chairman of the Board of Directors GRI 2-22 Dear reader, For Braskem, taking a long-term strategic view means achieving a balance between material issues for business, for people and for the planet. We understand that our ac- tions must be based on principles for sustainable develop- ment to create value for all our stakeholders, now and in the future. Over the years, we have been building and aligning our strategy to the challenges, trends, and new global demands. Thus, understanding the risks, paying attention to market opportunities and society’s expectations, since 2021 we have focused our activities on themes that are relevant for Braskem and the petrochemical industry: the elimination of plastic waste, the fight against climate change, and so- cial responsibility and human rights. To ensure that the decision-making process in the com- pany considers these and other commitments made for 2025, 2030, and 2050, we rely on a solid governance structure in which the Board of Directors actively par- ticipates in discussions and decisions about the evolu- tion of our long-term vision. In 2022, we contributed with another crucial step for Braskem’s journey and for sustainable development: we approved the update of the corporate strategy that now highlights sustainability and innovation as strategic pillars; we positioned the renewable, recycled and tradi- tional businesses, provided they contribute to the reduc- tion of greenhouse gas emissions, as avenues for business growth; and we reinforced safety, people and governance as our foundations. This step consolidates what had already been happening in the last two years: attention to market opportunities to accelerate the achievement and capture value with the commitments made. In 2022, we approved the new corporate structures, such as the spin-off of Voqen, an energy trading company; the joint venture Sustainea, producer of bioMEG and bioMPG; the joint venture with ER Plastics to enter the circular applications market; and the acquisition of an equity stake in Wise, a company in the recycling sector. We also approved the launching of Oxygea that, with initial investment of 150 million dol- lars, aims at fomenting start-ups and ventures to reach Braskem’s long term commitments. José Mauro Mettrau Carneiro da Cunha Chairman of the Board of Directors 6 Integrated Report 2022Message from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryMessage from the chairman of the Board of DirectorsSolid foundations Sustainable growth The strategic focus on growth combined with sustainability requires solid foundations and the reinforcement of the core values of our business. Integrity, ethics, and transparency must prevail in all strategic decisions, actions of executives, leaders, members, and in all relationships. Over the years, Braskem has evolved its commitments in a manner in- tegrated to the corporate strategy, acting in an increasingly sustain- able manner, and focused on preserving and generating value to the planet, to society and to our shareholders. In this sense, we recognize Braskem’s exemplary work in the continuous strengthening of the compliance system that, in 2022, obtained two major achievements: the maintenance of the ISO 37001 certification and the best historical score in the evaluation of the Ethos Institute since we implemented the Compliance System (9.9 out of an average of 7.4 in our sector). The recognition extends to a close look at human rights. This year, we reinforced our corporate risk matrix with the results of the updated human rights due diligence, which analyzed the potential risks of vio- lation in our value chain. In this process we identified that most of the risks mapped, such as, for example, the image of plastic and socioeco- nomic issues, are already being treated and monitored by Braskem. People’s safety is a non-negotiable part of our ethical and responsible performance. In this aspect, the Board of Directors continues to closely follow the company’s decisions in relation to the communities affected by the geological event in Maceió. The programs dedicated to the safe and fair relocation of families, as well as the region’s socio-urban re- mediation plan are progressing as expected, with the full dedication of more than 1,400 people and in alignment with the authorities. Even in a challenging global environment, Braskem reinforced its commit- ment to its financial health and presented solid results throughout 2022, with recurring cash generation of R$6.0 billion, corporate leverage of 2.42x, and maintenance of its investment grade rating by Fitch and S&P. We have a sharp vision for 2030. Focused on the perpetuity of the business, we will seek a balance between capital allocation, share- holder return during the petrochemical cycles, while investing in the business and in new opportunities, generating a positive impact for all stakeholders. José Mauro Mettrau Carneiro da Cunha Chairman of the Board of Directors 7 Integrated Report 2022Message from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryMessage from the chairman of the Board of DirectorsHighlights of 2022 R$10.6 billion in recurring EBITDA with net cash generation of R$3.3 billion and a return on cash flow of 18%. 2.42x of corporate leverage ratio, in dollars, with maintenance of the investment grade by the credit agencies S&P and Fitch Ratings. US$149 million of investments in projects related to achieving sustainability goals for 2025, 2030 and 2050. US$150 million dedicated to investments in accelerating innovative start-ups in sustainability and circularity, within five years, through the new Oxygea Ventures innovation hub. +220 average megawatt of renewable electricity contracted in Brazil through long-term agreements for wind and solar sources, equivalent to the residential consumption of a city of 2.8 million inhabitants. 179,000 tons of PE I’m greenTM sold and diversification of the green portfolio with the Sustainea joint venture, which will produce, in the future, bioMEG and bioMPG based on renewable raw materials. Increase by 144% in sales of products with recycled content, totaling 54 thousand tons, and expansion in the recycling chain with the acquisition of Wise Plástico and the joint venture with ER Plastics. 0.85 accidents rate accidents with and without lost time per million hours worked, lowest rate in the last six years due to progress in the human reliability program. The highest score of the well-being thermometer in three years of research (4.17 out of 5 points), which evaluates the level of satisfaction, engagement, and well-being of the members with their work, now considering all the regions. +150 social projects which benefited more than 610,000 people worldwide. R$514 million in spending and investment in innovation and technology, an increase of 70% from 2021. 8 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Our value chain Our products 9 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryBraskemHighlights from 2022Braskem GRI 2-1, GRI 2-6 We are a global chemical and plastics company, a leader in the production of biochemicals and biopolymers manufac- tured from ethanol produced on an industrial scale from sugarcane. As the largest plastics producer in the Americas, we are committed to the circular economy and carbon neutrality, and believe in innovation as the strategic pillar of our actions. Our purpose is to create sustainable solutions through chem- icals and plastics. To that end, we have adopted a business strategy integrated with sustainable development, strength- ening our commitment to economic growth, conservation of the environment and social justice. We have a human perspec- tive and encourage leadership in all our team members, who work daily to develop a broad and diverse portfolio, with products and solutions that serve our customers in more than 71 countries. LEARN MORE! about Braskem. Subtitle Commercial office PP: 625 kt/year CRP: 23 kt/year Ethylene: 3,752 kt/year Green ethylene: 200 kt/ year (+ 60 kt growth) Industrial plants Recycling facilities Innovation center PP: 2,020 kt/year PE: 3,055 kt/year PP: 1,850 kt/year PVC: 710 kt/year PE: 1,050 kt/year Chlorine: 400 kt/year Caustic soda: 460 kt/year PCR: 39 kt/year Performance map GRI 2-1, GRI 2-6, GRI 2-7 + 8,600 team members Present in 11 countries. 40 industrial unities and 3 recycling facilities. 14 comercial offices. Costumers in over 71 countries. Annual production capacity of 12 million tons of chemicals(1) and 9.3 million tons of thermoplastic. 6 innovation centers and 1 under construction. 200,000 tons of biopolymers and +60,000 tons in expansion. Net Revenue: US$18.7 billion in 2022. Market Value: US$3.6 billion (12/31/2022). (1) Includes ethylene, caustic soda, chlorine, EDC and other chemicals. Braskem 10 Integrated Report 2022 United States 1 5 +1 under construction 2 Mexico 1 4 1 Latin America 5 Argentina, Chile, Peru, Colombia and Brazil Brazil 4 29 2 3 CLICK HERE For more information about our global presence. Netherlands 1 1 Germany 1 2 Asia 2 Singapore Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights of 2022Company's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Our value chain GRI 2-6 We operate in the first and second generations of the petrochemical industry, with inte- grated operations in Brazil and Mexico. In the United States and Europe, our operations are directly supplied with raw material for the second generation by non-integrated suppliers. Through renewable, non-renewable and post-consumer raw materials, we offer a broad port- folio of chemicals and plastics transformed by our customers into applications that meet a variety of essential needs for everyday life such as food packaging, household furniture, indus- trial and automotive components, paints and coatings, among others. d g enera t i 2n o n Thermoplastic resins 1s t g e nera t i o n Basic petrochemicals Non-renewable EXTRACTION Renewable Chemical recycling(1) (1) Technological route under development. Mechanical recycling 3 r d gen e r 11 POST-CONSUMPTION FINAL PRODUCTS a t i o n Converters BraskemIntegrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022Company's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryOur products GRI 2-6 In the search for sustainable solutions through chemicals and plastics, our products are used to manufacture a wide range of items that people use in their daily lives in segments such as food pack- aging, home furniture, industrial and automobile components, paints and coatings, and others. fronts Through innovation, we aspire to be a benchmark in sustainability within the chemical and plastics industry. We work on several to as- sess the environmental impacts and extend the useful life of our products. When developing new technologies, products and applications or business models, we seek solutions that mitigate negative impacts of our portfolio across the chain, whether by encouraging the use of circular design, supported by the Design for Environment methodology(2), or through Life Cycle Assessment (LCA)(3) or sustainable produc- tion certifications. LEARN MORE! LEARN MORE! About our Wenew portfolio. About our portfolio of I'm greenTM products (2) Design approach that focuses on reducing the overall impact of a product, process or service on health and the environment, where impacts are taken into account throughout its life cycle. (3) Technique for evaluating and quantifying potential environmental impacts associated with a product or process. Infrastructure, housing, water availability, and sanitation Braskem products used PVC • Toluene • Braskem PIB • PP - Chlorine • Solvents • Butadiene • Benzene • PE • Unilene • Caustic Soda • Hypochlorite Benefits Improved application performance, improved pipe/treatment station efficiency, and lower cost if compared to other materials End products Household appliances • Furniture • Paint • Cleaning products • Water treatment stations Mobility Braskem products used PE • Paraxylene • Cumene • PP • Propene Fuel • Benzene Benefits More passenger safety, corrosion protection, fuel economy of fuel, and lower rate of emissions of pollutants into the atmosphere End products Fuel tank • Coating of steering wheels and shock absorbers, door and instrument panels, bumpers, glove compartment, seat linings, trunks, and roofs • Air bag, air intake ducts, gears, injection system connectors, and parking brake system • Seat belt • Headlights, taillights, dashboard • Gasoline • etc. Braskem 12 Integrated Report 2022 Health Braskem products used PE • PVC • Butadiene • PP • Propene • Ethane Benefits Greater durability and impact resistance, lower cost and rejection in the human body, less contamination, greater hygiene End products Prosthetic • Medical devices • Plastic diapers • Implants • Medical equipment • Vaccines and medicines • cleaning and sterilization Packaging and consumer goods Braskem products used PE • PP • PCR (post-consumption resin) • green PE • EVA and green EVA Benefits Better conservation, quality, and hygiene in food transportation and storage, better hygiene and comfort in baby care, better processability and lower cost if compared to other materials End products Rigid packaging for food, beverage, personal care products, and industrial uses • Flexible packaging for food (e.g.: plastic wrap) • Fabric • Disposable diapers • Bags • Buckets • Boxes • Furniture • Toys Agriculture and food Braskem products used PE • PVC • Solvents • PP • Paraxylene • PIB Benefits Increased productivity with less water consumption and reduced food waste End products Grain packaging • Fruit and Vegetable Products • Agrochemicals, fertilizers, seeds • Beverage packaging, PE bottles, etc. Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights of 2022Company's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryCompany's strategy Value creation strategy Business model Ecosystem Intelius: global performance management Our sustainability journey Materiality matrix Sustainable development commitments 13 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryCompany's strategyHighlights from 2022Value creation strategy Foundations Growth avenues In 2022, we took another crucial step towards defining the company’s growth focus for the coming years, within a strategy that integrates our commit- ments to sustainable development and maintaining our competitiveness. Throughout the year, we conducted a review and consolidation exercise of our corporate strategy, which is anchored on its strategic pillars and foundations, with a focus on creating value through balanced capital al- location, returning value to shareholders over the cycle, while we invest in our growth avenues, impacting positively all stakeholders. Strategic pillars Our strategic pillars reinforce the ambitions we have for the long term, considering the demands and opportunities in the traditional business, as well as ensuring that we look at the topic of sustainability in our in- vestment decisions. Hence, our corporate strategy contemplates the following pillars: Productivity and competitiveness: move towards the 1st quartile of the global cost curve of the petrochemical industry, focusing on de- carbonization initiatives and high value-added investments. The foundations of our strategy reflect the values that we consistently prac- tice and that are key to ensuring the achievement of our ambitions across the different pillars and growth avenues. They are: Safety: safe operations as a perma- nent and non-negotiable value. People: a human-centered company inclusion, that promotes diversity, and human right. Governance: governance and compli- ance in line with market best practices. Traditional business Bio-based Recycling We will selectively invest to grow our current business seeking for produc- tivity, and competitiveness improve- ments, and continue to implement the decarbonization of our existing assets. These measures together will enable the delivery of our commit- ment to reduce scope 1 and 2 emis- sions by 15% by 2030 and achieve carbon neutrality by 2050. Our strategy seeks to grow in bio- based resins and chemicals, as well as increase the use of renewable raw materials, to meet our com- mitment of expanding bioproducts capacity to 1 million tons by 2030. We intend to accelerate the de- livery of this commitment through the creation of strategic and finan- cial partnerships. We aim to grow in circular products (mechanical recycling) and expand the use of circular raw materials (chemical recycling), with a com- mitment to reach 1 million tons sold of resins and chemicals with recy- cled content by 2030. Also, we are working to prevent 1.5 million tons of plastic waste from being sent to in- cineration, landfill, or dumped in the environment by 2030. Strategic pillars Growth avenues Sustainability: to be a reference in the chemicals and plastics sector in sustainable development globally. Productivity and Competitiveness Growth and diversification: to increase diversification into bio-based and circular raw materials and products. Innovation: deliver sustainable high value-added solutions through innovation in chemistry and plastics. Sustainability Growth & Diversification Traditional business Bio-based Recycling Foundation Innovation Safety People Governance Value creation to shareholders and positive impact generation to all stakeholders Company's strategy 14 Integrated Report 2022 Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights of 2022BraskemGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryBusiness model V A LUE CHAIN PRODUCTS RESULTS Our corporate strategy guides the generation of integrated value throughout the value chain, expanding positive impacts and mitigating the negative ones of our performance in all capitals. Company's strategy 15 Integrated Report 2022 INPUTS HUMAN CAPITAL • Diversity • Competences • Multiculturalism • Ethics and compliance • Cash provided by our operations • Banking loans and financings • Funds raised in the stock market EXTRACTION Raw materials NON- RENEWABLE RENEWABLE MECHANICAL CHEMICAL(1) • Naphtha • Propene • Water • Ethane • Electric power • Ethanol • Propane • Plastic waste (1) Technological route under development. RECYCLING • Trust built with our stakeholders • Industrial units • Technical laboratories • Pilot plants • Logistics warehouses • Innovation and • Train wagons technology centers • Cargo terminals • Patents • Trademarks • Technologies • Copyrights • Systems • Processes • Platforms 1st GENERATION Basic petrochemicals n Innovatio TY, P E E F A S P roductivity an O P L E AND G O V d c o m p e E R N A t i t i v e n e s s BELIEF AND PURPOSE N C E y u stainabilit S e rsification CONSUMER END PRODUCTS POST-CONSUMPTION Waste management G r o w t h a n d d i v 2nd GENERATION Thermoplastic resins 3rd GENERATION Converters Portfolio of innovative and sustainable products from chemistry and plastics, transformed by our customers into applications that meet daily human needs and make people’s lives better. • Professional and personal accomplishment • Qualification and development • Social and environmental safety • Chemical safety of the products • Discipline of capital allocation • Added value distribution • Consumption of water • Energy efficiency • Reuse of water • Clean energies • Consumption of power • Emission of pollutants • Clean energies • Waste generation • Generation of effluents • Capture of CO₂e • Recycling • Local development • Dialogue with the society • Transparent relationships with the Government • Free competition • Customer loyalty • Reputation • Relationship with • Class agreements suppliers • Efficiency of installed capacities • Prolonged useful life • Digital transformation • Ecoefficient products • Clean technologies • Operational efficiency FINANCIAL CAPITALNATURAL CAPITALMANUFACTURED CAPITALSOCIAL AND RELATIONSHIP CAPITALINTELLECTUAL CAPITALMessage from the chairman of the Board of DirectorsMessage from the business leaderHighlights of 2022BraskemGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Ecosystem GRI 2-6 We believe that the transformation of the chemical and plastics industry is a global challenge, which shall be carried out in cooperation. For that reason, we act with strategic partnerships to accelerate the achievement of our long-term commitments. ELIMINATION OF PLASTIC WASTE SUSTAINABLE INNOVATION COMBATING CLIMATE CHANGE COOLBROOK LUMMUS TECHNOLOGY Companies Partnerships VALOREN ALCAMARE NEXUS CIRCULAR SENAI 16 CASA DOS VENTOS VEOLIA AUREN EDF ENERGIES NOUVELLES VOLTALIA SIEMENS ENERGY SCG CHEMICALS(1) (1) Partnership in development. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryIntelius: global performance management GRI 403-1 The purpose of Intelius, Braskem's global manage- ment system, is to unify and simplify the way we translate strategy into results, and it was devel- oped based on the ISO 45001, ISO 14000, RC 14001, and ISO 9000 standards, in addition to regulations of other standards applicable to the petrochemical industry (such as ABNT rules, API, and Programa Atuação Responsável® [Responsible Action Program]). Intelius, which is composed of five pillars - Health, Safety and Environment (HSE), Quality, Industrial Effectiveness, Performance Management, and Continuous Improvement & Sharing of Best Practices – is applied mainly to the company’s in- dustrial activities, and the implementation of its requirements leads to the identification and pre- vention of impacts on workers’ safety and health, the environment, process safety, asset reliability, and the quality of our products, seeking to promote continuous process improvement. The system is subject to an annual internal audit for the identification and repair of potential non- conformities in relation to its guiding principles. In 2022, 100% of the industrial units were audited, as well as the corporate processes related to certifica- tions, such as ISO 9001 and ISO 14001, for example. More than 3,000 requirement compliance checks were performed, distributed among all units, totaling more than 650 audit hours, globally. Continuous improvement Also in 2022, we established a governance cycle for Intelius that considers a cohesive and consistent docu- mentation structure, implementation of requirements based on gap analysis and action plan, audits for the veri- fication of compliance of the requirements implemented, and the review, to ensure effectiveness of the manage- ment system and adequacy to the company's strategies. Review Documentation Audit Implementation 17 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryOur sustainability journey Sustainability has been part of Braskem’s operating principles since its creation in 2002, when we started on a path of continuous evolution, which culminated in 2020 in the renewal of our commitments to sustainable development for 2030 and 2050 and the inclusion of the topic as the guiding pillar of our corporate strategy. Establishment of commitments to carbon neutrality and circular economy performance. Renewal of the sustainable development commitments for 2025, 2030 and 2050. 2021 Creation of Braskem and publication of our commitments to sustainable performance. First year of accounting and external verification of corporate greenhouse gas inventory, in accordance with the GHG protocol. Start of green ethylene plant operations, raw material of green PE derived from ethanol produced from sugarcane. 2014 2002 2008 2009 2010 Establishment of 10 Sustainable Development Goals for 2020. First year in which Braskem received recognition as a leader by the UN Global Compact due to its contribution to the UN’s SDG. 2018 2020 Implementation of the Sustainable Development Policy. Definition of strategic positioning in relation to the circular economy. Quality certification ISO 37001 with implementation of Anti-Bribery System. Record score in reputation, according to the RepTrak methodology. Implementation of Industrial Decarbonization Program. 2025 / 2030 / 2050 Horizon of the new commitments. 2022 Updating of climate risk assessment and of the Materiality Matrix. Completion of the second cycle of due diligence on human rights. 31% achievement of the sustainable development strategy. 18 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryCompany's strategyHighlights from 2022Materiality matrix GRI 2-29, GRI 3-1, GRI 3-2 The materiality matrix is a fundamental tool for building our long-term commitments for sustainable development. Based on the most recent guidelines of the Global Reporting Initiative (GRI), in 2022, we updated our materiality matrix to identify the issues that are most relevant to our busi- ness, considering environmental, social, economic and governance dimen- sions. This update involved consulting with more than 1,200 internal and external stakeholders(1), including team members, leaders, customers, sup- pliers and the financial market, as well as face-to-face interviews with 78 leaders, benchmarking peer companies and analyzing key corporate risks and opportunities for the sector(2). Steps for materiality reassessment 1 2 3 4 5 6 7 Identification of ESG topics Stakeholder consultation (internal and external) Risk analysis Opportunity analysis Alignment to voluntary commitments Definition of weights for each attribute Materiality matrix definition and prioritization The study resulted in more than 500 topics which, after analysis and cross-checking of data and perceptions raised during the qualitative and quantitative consultations, defined the 21 most relevant issues for Braskem. These issues were aggregated into two different groups, which guided the type of strategic action to be taken: the value protection group (16) and the value creation group (5). Value protection: issues whose impact management can protect Braskem’s tangible and intangible value over time, which preserve and strengthen the corporate image and mitigate business risks. Value creation: issues whose impact management can create tangible and intangible value for Braskem over time, which gen- erate competitive advantage through business opportunities and strategic partnerships. After reviewing the materiality matrix, we identified that most topics already have strategic ambitions or are part of the company's operational management. The new themes identified are being evaluated to define the level of action. Braskem materiality matrix 3.0 2.5 2.0 1.5 S R E D L O H E K A T S R O F E C N A V E L E R 19(3) 1.0 1.0 Protection of value Generation of value 2 16 15 3 14 6 21 12 9 13 1 5 10 20 22 7 11 18 4 17 8 1.5 2.0 2.5 3.0 RELEVANCE FOR BRASKEM 1 - Irrelevant 2 - Important 3 - Very important 21 material issues (1) Academia and universities, associations and coalitions, boards, officers, customers, communities and third sector, financial market, government and trade associations, investors, suppliers, startup ecosystem, team members, and unions. Strategic ambition: KPIs, targets Operational management In evaluation 1. Biodiversity and land use 2. Climate changes 3. Post-consumption plastics 4. Air pollution 5. Energy efficiency 6. Waste management 7. Waste and effluents management 8. Raw material impacts 9. Diversity, equity, and inclusion 10. Communities and social investments 11. Health, safety, and well-being 12. Human rights 13. Employment, development, and retention 14. Responsible production and consumption 15. Innovation, technology and digitalization 16. Economic and financial performance 17. Project management 18. Supply chain management 19. Infrastructure and sustainable cities4) 20. Risk and opportunity management 21. Management of relationship with stakeholders 22. Governance, ethics, and compliance 1 2 3 3 1 1 1* 1 1* 1 1 1 1 1 1 2 2 1 1 2 2 2 2 2 L A T N E M N O R V N E I I L A C O S I C M O N O C E E C N A N R E V O G (2) MSCI, GRI, SASB, CVM, WEF, S&P, among others. (3) Issue analyzed as non-material. * Ambition to be defined. 19 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Sustainable Development Commitments Approved by the board of directors in 2020, the sustainable development commitments were built based on our materiality matrix, had the par- ticipation of our team members, leaders and executives, and also con- sidering the analysis of global scenarios and trends, corporate risks and external references in sustainability. They encompass the dimensions of sustainable development (economic, social and environmental) and are aligned with the UN Sustainable Development Goals (SDGs), with pri- ority given to the topics where our biggest impacts were identified. This strategy consists of seven dimensions and sets Braskem’s second cycle of long-term commitments(2) for 2025, 2030 and 2050. Commitments 2020–2030 In 2022, we achieved 31% of our commitments(1). (1) It disregards the Water Security indicator, as its baseline is under evaluation, as well as the commitment to Operational Eco- efficiency, as ambitions are being defined. Focuses of action of the sustainability pillar. Braskem and the SDGs The commitments for 2025, 2030 and 2050 were set considering the impacts of Braskem and its supply chain – positive and negative – on each of the SDGs. This analysis was performed using the SDG Compass methodology and outlined our direct impact on four SDGs and, through our supply chain, impact on another 9 SDGs – totaling 13 themes. CLICK HERE To understand how we work on each of these commitments and how they align with our business. Our SDG priorities: Sustainable innovation MATERIAL THEME: 15 Health and safety MATERIAL THEME: 11 Lorem ipsum Theme Social Economic Environmental Economic and financial results MATERIAL THEME: 16 Elimination of plastic waste MATERIAL THEME: 3 (2) The achievement of the commitments for sustainable development disclosed by the company (within projected costs and expected deadlines) is also subject to risks that include, but are not limited to: advancement, availability, development and accessibility of the technology necessary to achieve these commitments. Social responsibility and human rights MATERIAL THEME: 9, 10 e 12 Combating climate change MATERIAL THEME: 2, 7 e 8 Operational eco-efficiency MATERIAL THEME: 4, 5 e 6 LEARN MORE! About our commitments. 20 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryElimination of plastic waste attainment in 2022 3.3% Proper management of post-consumer plastic waste disposal is a global concern and a society-wide chal- lenge. We want to contribute and be recognized as a company that develops the recycling supply chain, acting on four fronts that encompass all the challenges of the industry: Current challenge Annual results Commitment for 2030 Positive progress of the target No progress on target Product sales with recycled content (thousand tons) 1 2 3 4 Portfolio of sustainable products Investment in an innovative and sustainable product portfolio based on chemical and mechanical recycling. Technology development Development of technologies in chemical and mechanical recycling to enable large- scale production of products with recycled content, in chemical and mechanical recycling. Environmental education and consumer engagement Promotion and engagement of consumers in the recycling and recovery of waste, by raising awareness of the value of waste. Circular design applications Innovation in circular packaging design, based on collective intelligence. These fronts seek to achieve our commitments of increasing to 300,000 tons per year the sale of products with recycled content by 2025 and 1 million tons by 2030, as well as preventing 1.5 million tons of plastic waste from being sent to incineration, landfills or disposed of in the environment by 2030. 4.7% 1,000 +946 7.3 22.2 54.1 2020 2021 2022 2030 Recovered plastic waste (thousand tons) 1.9% 1,500 +1,466 33.5 5.0 17.8(1) 2020 2021 2022 2030 (1) In 2022, we started to consider collective actions for waste recovery. The result for 2021, of 13 thousand tons, consid- ered only the percentage recovered in the sale of post-consumer resins. You can find more details on the key initiatives and projects that helped us achieve these results in the Natural Capital and Manufacturing Capital chapters. CLICK HERE To find out more about the commitments and ambitions of our strategy. LEARN MORE! About the calculation methodology in the annex. 21 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryCombating climate change attainment in 2022 23.6% Climate change is a global challenge, and its impacts are felt in all dimensions of sustainable development. Thus, we wish to be global leaders in the chemical industry, with the best indicators in terms of GHG emis- sions and a key player in carbon capture through the production of materials with renewable raw materials, based on three fronts: Current challenge Annual results Commitment for 2030 Positive progress of the target No progress on target Absolute GHG emissions (million tons of CO2e, scopes 1 and 2) Renewable electricity (% of electrical energy purchased) 6.9% 69.1% 82 +3 85 1 Emission reduction 2 3 10.87 10.83 10.76 -1.53 9.24 74 71 Carbon removal with stock in product Carbon to chemical conversion 2020 2021 2022 2030 2020 2021 2022 2030 Reduction in the emissions of CO2e with focus on energy efficiency and increased use of renewable energy. Accelerate the growth of company business in chemical products and polymers made from renewable raw materials that remove CO2e from the atmosphere. Investment in technologies for carbon capture to store and use it as a raw material for the production of chemical products. We seek an absolute reduction of greenhouse gases emission, scopes 1 and 2, of 15% by 2030 (in relation to the average emissions for the years 2018, 2019 and 2020), reaching carbon neutrality by 2050. Thus, our purpose is to increase to 85% the total renewable electricity purchased for consumption in our industrial units, as well as to expand the production capacity of bioproducts to 1 million tons. Part of the fight against climate change also encompasses business adaptation to extreme weather events. To mitigate the risks related to water scarcity, we have the commitment of increasing the water safety index of our operations to 100%, by means of water consumption efficiency and substitution of capture for safe sources. Bioproduct production capacity (thousand tons) Water Safety Index (% of water capture from safe sources) 0% 1,000 200 200 200 +800 2020 2021 2022 2030 Climate adaptation (% of high climate risk) 18.5% 27 22 22 2020 2021 2022 -22 0 2030 Note: Braskem's commitment is to achieve 100% water intake from safe sources by 2030, measured by the water security indicator. After reviewing the methodology for this indicator in 2022, Braskem will recalculate its historical data and base year to present its achievement in the next cycle. See the annual indicator results in Natural Capital, Water Management. Find more details about the main initiatives and projects that helped us achieve these results in Natural Capital. LEARN MORE! About the commitments and ambitions of our strategy. LEARN MORE! About the calculation methodology in the exhibit. 22 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summarySocial responsibility and human rights attainment in 2022 35.1% Progress in sustainable development also implies a just society, with opportunities for all and aligned with human rights. Therefore, our ambition is to be recognized as a company that promotes human rights and equity in our operations and supply chain, and that also contributes towards the local development of sur- rounding communities. For that reason, we work on three fronts: 1 Local development To promote the local development of the communities surrounding our operations, contributing to the circular economy, entrepreneurship and innovation, and education. 2 3 Diversity, Equity and Inclusion Program To cooperate for an increasingly inclusive and welcoming society, ensuring equal opportunities for all through the Diversity, Equity, and Inclusion Program. Human rights risk management throughout the chain To prevent, mitigate and, where appropriate, redress any human rights viola- tions in our own operations and as a result of our busi- ness relationships. In 2022, we completed our second cycle of due diligence in human rights, a process that will help us achieve the commitment of managing 100% of human rights risks (high and medium) by 2030, in addition to supporting the achievement of commitments such as increasing the number of people benefited in communities to 500,000 people, increasing the percentage of women in leadership in Brazil to 45% and the percentage of black team members to 35%, in the same period. Current challenge Annual results Commitment for 2030 Positive progress of the target No progress on target RepTrak Pulse – Communities(1) (range) Beneficiaries in communities (2) (thousand people) 54.5% Strong Average Weak 403 323 0% 311 500 +189 2020 2021(1) 2022(1) 2030 2020 2021 2022 2030 (1) Results for 2021 and 2022 revised due to improve- ment in RepTrak's reputation analysis methodology. (2) Considers private social investment and volunteering. Diversity (women in leadership –%) (team members self- declaring as black(3) – %) 22.1% 17.0% 28.9 30.4 31.4 + 8.6 40.0 29.9 30.2 31.1 +5.9 37.0 2020 2021 2022 2030 2020 2021 2022 2030 Risks to human rights in the supply chain (% of high and medium risks that are fully managed) 81.8% 96 + 4 100 86 78 2020 2021 2022 2030 (3) Considers Brazil and the United States. You can find more details on the key initiatives and projects that helped us achieve these results in the Human Capital and Social and Relationship Capital chapters. LEARN MORE! LEARN MORE! About the commitments and ambitions of our strategy. About the calculation methodology in the exhibit. 23 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHealth and safety attainment in 2022 35.9% Economic and financial results attainment in 2022 35.6% Sustainable innovation attainment in 2022 50.0% Accident Rate CAF (with lost time) + SAF (without lost time) (accidents per million hours-man worked) Accident Rate TIER 1 + TIER 2 (accidents per million hours-man worked) 22.2% 0.95 0.86 0.85 -0.35 0.50 21.4% 0.43 0.46 0.32 -0.11 0.32 Net debt to EBITDA ratio (points) RepTrak Pulse – Customers (range) Sustainability Index of I&T (% of portfolio of projects with positive impact) 92.0% 3.28x 2.86x 50.3% 50.0% Excellent 2.10x -0.10 2.00x Strong Strong Average 90 85 +5.0 81 80 2020 2021 2022 2030 2020 2021 2022 2030 2020 2021 2022 2030 2020 2021 2022 2030 2020 2021 2022 2030 CAF: accidents with leave SAF: accidents without leave Occupational diseases (number of events) 35 0% 5 Current challenge Annual results Commitment for 2030 Positive progress of the target No progress on target Socio-environmental risk mitigation plan(1) (% of actions implemented in the year) Dow Jones Sustainability Index (points) Total Shareholder Return (%) 100% 100 0 100 75 0% 71 69 67 +7 0% 19.1 15.0 74 4.8 -58.8 +73.8 1 - 5 18 2020 2021 2022 0 2030 2020 2021 2022 2030 2020 2021 2022 2030 2020 2021 2022 2030 (1) The assessment of socio-environmental risks is an on- going study. New action plans already exist for the coming years and new actions that can be included by 2030. You can find more details about the key initiatives and projects that helped us achieve these results in the Human Capital chapter. CLICK HERE To find out more about the commitments and ambitions of our strategy. Access the appendix to find the methodology for calculating the indicators and the respective percentage of achievement. You can find more details on the key initiatives and projects that helped us achieve these results in the Financial Capital chapter. CLICK HERE To find out more about the commitments and ambitions of our strategy. Find more details about the main initia- tives and projects that helped us achieve these results in Intellectual Capital. LEARN MORE! About the commitments and ambitions of our strategy. Operational eco-efficiency The indicators for this dimension refer to the availability of water consumption, energy consumption, hazardous waste generation, air emissions, and chem- ical and biochemical oxygen demand. Challenging commitments are being de- fined and you can find further details on these fronts in Natural Capital. LEARN MORE! About the commitments and ambitions of our strategy. 24 PB Relatório Integrado 2022 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryGovernance in sustainability Sustainability Governance Structure GRI 2-12, GRI 2-13 To guarantee that short-term objectives are aligned with the long- term objectives, Braskem relies on a governance structure that en- sures the follow-up of the strategy's progress by executives through the Global Sustainability Committee. The Committee meets monthly, is divided into working groups for each dimension of the strategy, and for each of them an executive is designated as the responsible person. The matters discussed in this forum are submitted to the CECESG, an advisory committee to the Board of Directors for sustainability mat- ters, according to the relevance of the agenda. In furtherance of the commitments made, assigning roles and re- sponsibilities to all professionals, since 2021 environmental, social, and governance (ESG) aspects have been included in the corporate goals, which are assigned, according to positions and responsibilities, from the business leader to the base of the hierarchy. In 2022, the ESG targets attributed to the business leader represented 33% of the total targets established, against 30% in 2021. Advisory Board Independent and specialized external members Global Sustainability Committee CEO + vice-presidents Strategy, Communication, and ESG Committee (CECESG) PMO Transform for Value Sustainable Development Tools & concepts Governance Communication Sponsors: Vice Presidents(1) 1 Health Saúde e Ec Ec and safety segurança 2 3 4 5 6 Resultados Financial and Ec Ec financeiros economic results e econômicos Eliminação Plastic Ec Ec de resíduos waste disposal plásticos Combate às Fighting Ec Ec mudanças climate change climáticas Ecoeficiência Operational operacional eco-efficiency Social Responsabilidade responsibility and social e direitos human rights humanos (1) In 2022, the Global Sustainability Committee decided to deepen the monitoring of the commitments that are the main focus of action. Advisory Board Board of Directors (BoD) 7 Inovação Sustainable sustentável innovation Focuses of action of the sustainability pillar. Since 2022, we have had a Sustainable Development Advisory Board formed by external and independent members. Its mission is to bring an unbiased and specialized perspective to decision-making related to the fulfillment of the company’s commitments on health, safety, climate change, plastic waste elimination, social responsibility and other themes of the strategy for 2025, 2030 and 2050. The board focused discussion on four themes: the sustainability strategy and long-term vision; the overall goals and ways to achieve them; advice on project portfolio and in- novation; and know-how on sustainability trends and how to incorporate them into the company’s strategies. 25 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryGRI 2-9, GRI 2-10, GRI 2-11, GRI 2-12, GRI 2-13, GRI 2-17 Governance structure Compliance System Ethical conduct 26 26 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryGovernance, ethics and complianceHighlights from 2022Governance structure GRI 2-10, GRI 2-13 Our corporate strategy and ambitions for sustainable development are guided by the constant evolution of our corporate governance and com- pliance initiatives in accordance with best market practices. Our Board of Directors (BoD) is the highest governance body, and its powers include to resolve on the company's Business Plan and on the objectives related to compliance and the environmental, social, and governance aspects (ESG), to analyze Braskem's initiatives linked to the ESG criteria and to encourage the adoption and constant update in relation to the best market practices applicable to its sector of ac- tivity, to resolve on the Succession Plan of the Officers Appointed by the Bylaws and to set their duties, in addition to approving operational or expansion investments, as provided in its Internal Regulations and in Braskem's Bylaws. In order to provide a complete overview of Braskem's governance system, all new members of the BoD participate in the Integration Program conducted by the Corporate Governance area, with presen- tations on the culture, people, business environment, and Braskem's Compliance and Governance Systems. In addition, since 2018 the BoD, its advisory committees and secretariat are subject to an annual eval- uation process organized by external advisors. GRI 2-12, GRI 2-17 Since 2021, the BoD has periodically evaluated the trends and evolu- tion of the practices adopted by Braskem. During 2022, 25 meetings in all were held, including ordinary and extraordinary meetings, the main topics discussed being the monitoring of risk assessment, the discus- sion, approval and launch of investments and projects in line with the 2030 and 2050 sustainability commitments. As well as the BoD, our gov- ernance structure is composed of the General Meeting, the Statutory Executive Board, the Supervisory Board and the advisory committees to the Board of Directors. GRI 2-12, GRI 2-14 Board of Directors (BoD) GRI 2-11 11 members, six of whom are independent. Elected by means of a list indicated by the signatories to the Shareholders’ Agreement. Two-year mandate, re-election permited. The chairman of the Board of Directors does not exercise an executive role at Braskem. CLICK HERE To find out more about the composition of our Board of Directors, Executive Board and committees. CLICK HERE Access the internal rules of the Board of Directors here. Ordinary General Meeting (OGM) A forum for the deliberation of shareholders, the Ordinary General Meeting (OGM) takes place every year after the end of the fiscal year to consider matters provided for in the Corporations Act, such as the directors’ accounts and financial statements; allocation of net profit from the fiscal year and distribution of dividends; election of the members of the BoD, if applicable, and of the Supervisory Board; and the overall remuneration of the directors and members of the company’s Supervisory Board. Extraordinary General Meetings (EGMs) may also be held whenever the corporate interest requires them, to deliberate on other matters under the purview of the shareholders. 27 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Governance Organizational Chart SHAREHOLDERS GENERAL MEETING Fiscal Committee 4 committees advising the BoD: Board of Directors People and Organization (11 members, 6 of whom are independent) Finance and Investment Strategy, Communication and ESG Independent Audit BoD Advisory Committees GRI 2-9 Statutory Compliance and Audit Committee (Comitê de Conformidade e Auditoria Estatutário – CCAE): its an statutory committee, that adheres to CVM Resolution nº 23/2021, as well as adhering to the rules of the Sarbanes-Oxley Act (SOx), formed by five independent members (three members of the board of directors and two external members) who monitor Braskem’s internal controls and risk management and oversee the quality and integrity of fi- nancial statements and financial reports. Strategy, Communication, and ESG Committee (Comitê de Estratégia, Comunicação e ESG – CECESG): composed of three members of the BoD, one of which is independent, it is responsible for supporting the Board of Directors in the evaluation of the strategic direction, which shall observe Braskem's sustainable development guidelines, and for monitoring and evaluating the initiatives and goals assumed by the Company with respect to its corporate sustainability and the ESG criteria. Its duties include, without limitation, to monitor ESG as- pects existing in the strategy and in the corporate policies relating to the disclosure of infor- mation, sustainable development, and health, safety, environment, quality, and productivity. Statutory Compliance and Audit CEO Global CCO Vice-Presidents (VPs) Ethics Committee Finance and Investment Committee (Comitê de Finanças Investimentos – CFI): analyzes the policies related to financial management, guarantees, investments, dividends and se- curities trading. In addition, it participates in investment decisions and monitors the finan- cial strategy and the performance of the company’s shares on the stock market. It has four members of the board of directors, one of these being an independent member. People and Organization Committee (Comitê de Pessoas e Organização – CPO): com- posed of three members of the board of directors, one being independent, it monitors and reviews strategic policies and projects, in addition to parameters and criteria that the board suggests in relation to the remuneration of the directors. Corporate Regional Offices • Compliance • Internal audit • Internal controls • Risk management • Compliance Officer South America • Compliance Officer Europe and Asia • Compliance Officer United States • Compliance Officer Mexico Shareholding Composition GRI 2-1 Braskem is a publicly traded company and has participated in Level 1 corporate governance of the São Paulo Stock Exchange (BM&F Bovespa) since 2003. Currently the main shareholders of the company are Novonor – in judicial recovery, and Petrobras. The company also has part of its shares listed on the B3, the New York Stock Exchange (NYSE) and the Latibex – the Latin American section of the Madrid Stock Exchange, which gives more liquidity to shareholders. Free float 38% 26% 28 36% Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Compliance System GRI 2-26, GRI 3-3, GRI 205, GRI 206, GRI 406, GRI 3-3 406, GRI 3-3 415, GRI 419 Our Compliance area has among its main roles ensuring a constant evo- lution of the maturity of internal controls, risk management, internal audit and compliance. To that end, we have a Chief Compliance Officer (CCO), who reports directly to the Board of Directors, via the Statutory Compliance and Audit Committee (CCAE), and indirectly to the CEO. In addition, we work based on our Global Compliance System Policy, which addresses the guidelines and responsibilities of our team members, in addition to establishing instances of governance for their compliance. The goal of double reporting provides for autonomy, while at the same time, maintaining the connection with the business leader. Braskem’s Compliance System consists of 10 integrated Risk Prevention, Detection and Remediation measures. The commitment of Braskem team members, especially leaders, to the implementation and practice of these measures is fundamental to the effectiveness and efficiency of the system. GRI 205, GRI 206, GRI 406, GRI 415, GRI 419 Engagement in collective actions 6 7 Management of the ethics line channel 8 Monitoring risks and controls Third-party compliance 5 Communication and training 4 Risk assessment and controls 3 Policies and other guidelines 2 Compliance governance 1 29 PREVENT DETECT LEADER REMEDY 9 Remedy risks and strengthen controls 10 Disciplinary measures Additionally, below the CCO, there are five structures that act in relation to the continuous improvement of our processes and risk management, with a team com- posed of more than 80 people worldwide: 1. Internal Controls: advises the company on the evalu- ation and design of processes and controls with a focus on minimizing risks, promoting the accuracy of ac- counting records and adherence of processes to guiding documentation (internal normative documents), busi- ness rules and laws and regulations in force. 2. Risk Management and Business Continuity: supports the leaders of the business areas in the assessment, pri- oritization, treatment and reporting of corporate risks. 3. Privacy and Data Protection: guides and organizes data protection through ethical solutions, in accor- dance with global legislation such as the General Data Protection Law. 4. Compliance: helps disseminate company values and promotes ethical, honest and transparent conduct. In addition to the codes of conduct, it provides training on topics such as ethics and anti-corruption. 5. Internal Audit: this is an objective and independent assessment and consulting activity, designed to add value and improve Braskem's operations. In 2022, we issued 25 reports referring to the review of various company processes, where we identified 128 opportunities for improvement, generating more than 200 action plans for the business areas, with the aim of improving our governance and the internal controls environment. Leniency Agreement with AGU and CGU Within the actions of the compliance area in 2022, it is important to highlight the submis- sion of the fifth and sixth monitoring reports of the Improvement Plan which forms part of the Braskem Integrity Program, together with the Secretariat for Private Integrity, which is a result of the Leniency Agreement signed in 2019 with the AGU and CGU. Global Compliance Survey We have also carried out the 2022 Global Compliance Survey, which allowed us to cap- ture the perception of all members of the company about the area, enabling the identi- fication of opportunities for improvement and confirming the commitment to continuous evolution of the system. Global Compliance Survey 2022 97.5% think that everyone is responsible for ensuring compliance within the company. +85% trust the confidentiality and seriousness of the Ethics Line Channel. 93.6% feel empowered to act ethically, honestly and transparently. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Commitment to compliance Our efforts to be a company recognized for integrity, ethics and transpar- ency also earned us two major achievements in 2022: the maintenance and extension of the ISO 37001 certification and the best ever historical rating in the Ethos Institute’s assessment since we implemented the Compliance System. This result positions us as a benchmark in compli- ance and above the overall industry average across all evaluated criteria. In addition, besides being a signatory of the Private Sector’s Commitment to the Integrity of the Supply Chain, promoted by the International Chamber of Commerce (ICC), we maintain our engagement in com- batting corruption by participating in the UN Global Compact’s Anti-Corruption Platform, in addition to promoting campaigns, internally and externally, on the subject(1). (1) There were no confirmed cases of corruption in 2022. GRI 205-3 Compliance Ambassador Program In 2022, we began the Compliance Ambassador Program in Brazil, an initiative that aims to improve communication between all areas on the issues related to compliance within the company. In this first year, 12 team members from all of the vice presidents’ departments participated in a series of training events to become the contact point between the vice presidents and the Compliance area, disseminating the culture and correct use of compliance tools. Ethos institute indicators of integrity over recent years Compliance tools Sector average 7.4 7.9 8.7 6.4 9.3 9.3 9.5 9.9 To ensure the effectiveness of the Compliance System, Braskem has the support of some important tools: CLICK HERE Related Party Policy CLICK HERE Third-Party Code of Conduct CLICK HERE Global Compliance System Policy CLICK HERE Regiment of Statutory Compliance and Audit Committee CLICK HERE Global Risk Management Policy CLICK HERE Global Anti-Corruption Policy CLICK HERE Learn about Braskem’s Statutes and Corporate Policies here. Cycle 15/16 Cycle 16/17 Cycle 17/18 Cycle 18/19 Cycle 19/20 Cycle 20/21 Cycle 21/22 In 2022, we reached a score of 9.9, out of 10, in the integrity evaluation of the Ethos Institute. 3030 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryEthical conduct The Code of Conduct guides to our commitment to ethical, responsible and transparent management. With a global scope, it defines the values, principles and practices that guide the company’s performance, in ac- cordance with all applicable laws. We also provide the Ethics Line Channel, a resource, in various languages, for receiving reports about violations of the team members’ and Third Party’s Code of Conduct. Created in 2007, it allows anonymous contact for whistleblowers to report information and facts in order to maintain an ethical and respectful corporate environment at Braskem. All pieces of information are received and treated with absolute confi- dentiality and 100% of the cases received by the Braskem Ethics Line Channel are handled and analyzed independently. Reports to the channel can be made anonymously and no retaliation against to complainants is allowed. The results and action plans arising from the investigations undertaken by the Ethics Line are carried out independently and impar- tially, being monitored by the Ethics Committee and by the Statutory Compliance and Audit Committee. GRI 2-26 In 2022, the greater confidence of the team members in the Channel was evidenced by a record number of reports being received. The Channel is a powerful tool for improving the work environment - 844 reports were received in this cycle, with 52.8% of the total being unsub- stantiated cases, cases with insufficient data or outside of the scope of the Channel. Completed investigations may result in the following out- comes: remediation plans that aim to monitor, communicate and train team members on topics related to the conduct expected by the com- pany; apply disciplinary measures based on internal guidelines; improve or create processes, controls and guidance documentation; and finally, request clarification from partners. 31 Respectful relationships GRI 3-3 406 Based on the Diversity diagnosis we did in 2021, discussions with the af- finity networks(2) – race and ethnicity, gender and LGBTQIA+ – and the analysis of reports received by the Ethics Line Channel, we identified that there are still situations of disrespect, harassment and discrimination within our work environment, especially in the industrial areas. Cases of discrimination GRI 406-1 6 5 9 4 For that reason, we developed the "Respect is Non-negotiable" project, which seeks to inform and raise awareness among people about its role in building an increasingly healthy, welcoming and inclusive envi- ronment. A pilot was held on November 21, 22 and 23 in Alagoas. There were eight training sessions which included the leaders of the admin- istrative areas of the Chlorine-Soda and PVC/MVC units and dialog with the operators of the control rooms. We also trained the leaders and team members in relation to the case of Maceió. As to the next steps we will compile the lessons learnt and expand this initiative to the other regions. (2) Groups that allow team members to connect and engage with a specific theme, usually related to their personal identity and experiences. 2019 2020 2021 2022 CLICK HERE To access our Ethics Line channel. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights from 2022BraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary Risk management 32 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryRisk managementHighlights from 2022Corporate risk management GRI 2-12, GRI 3-3 205, GRI 205-1, GRI 307 The risk assessment process leverages opportunities and identifies poten- tially negative impacts on the company, whether financial, strategic, operational or regulatory. Braskem’s risk management methodology is based on international references (such as ISO 31000 and COSO - Enterprise Risk Management), and divides risks into four categories: strategic, operational, finan- cial and regulatory. Risks are periodically evaluated by the company’s directors and submitted to a regional and then global consolidation process, and are considered according to the potential impact and prob- ability of occurring. The result of the analysis is presented graphically on a heat map and approved by the board of directors. With the analysis approved, the pri- ority risks are then treated and moni- tored, by the Board of Directors and its advisory committees, where relevant, in order to mitigate and prepare the com- pany to face adverse issues. Following the assessment of the corporate risks of all Braskem operations in 2022, we now highlight some risks that are being dealt with and monitored: Note: No significant corporate risks related to corruption were found, and the topic is continuously monitored and treated as a priority by the Compliance vice-presidency. Image of plastic Climate change Socio- environmental issues Petrochemical sector cycle Cyber and information security Macroeconomic and geopolitical factors Strategic risks Operational risks Human rights Growing global concern for the environment, as well as inadequate disposal of post-consumer plastic waste, with the trend of banning single-use plastic by governments and lawmakers. Mitigations include the development of initiatives to make Braskem a benchmark in the development of the recycling supply chain and the promotion of conscious con- sumption of plastic. CLICK HERE The greater concern on the part of the general population, with the growing search for government alignment with the goals of the Paris Agreement, through the implementation of public policies that encourage the reduction of greenhouse gas emissions. Our mitigation include the reduction of greenhouse gas emissions in the processes and in the purchase of low-carbon energy and e the compensation of emissions with investments in renewable raw materials. CLICK HERE Environmental, health, and safety impacts to which chemical and petrochemical operations are subject. The nature of our industry may involve risks to our workers and to the communities surrounding the industrial areas and the areas of transportation and loading/unloading of its products and raw materials, such as pipelines, roads, and ports. As a result, Braskem is subject to stringent labor, environmental, and other regulations. Mitigation encompasses a permanent mapping of scenarios of potential high risks and respective treatments through specific governance, as well as programs to improve the human reliability, and actions for mechanical integrity of the units. CLICK HERE A characteristic of the petrochemical industry, which historically alternates between periods of limited supply, which generates price and margin increases, followed by capacity expansions (of supply), which press prices and margins down until demand can absorb this product surplus and a new cycle begins. Mitigations for this risk include maintaining a conservative cash position above the minimum required by the company’s financial policy and maintaining the elongated debt profile. CLICK HERE Increased cyberattacks, which may result in the exposure of sensitive data, unscheduled operational stops, and unavailability of systems that affect the regular operation of the company with consequent damage to its image and reputation. Mitigations include network segregation and initiatives to increase control of the environment and assets, monitoring team member behavior and constant testing to identify if the environment is safe. CLICK HERE Instability of macroeconomic and political factors, caused by economic crises, wars and conflicts, including sanctions, that alter business dynamics and reduce/block the availability of products and inputs, as well as changes in policies related to fiscal incentives. Mitigations consists of periodic analysis of economic and geopolitical changes that may impact Braskem's economic activity, in addition to monitoring the regulatory environment and projecting macro sectoral variables, among others. By means of the synergy with the human rights due diligence process, the risks identified have been integrated into the company's risk mana- gement process, and are now systematically evaluated according to the corporate risk evaluation process. Risks associated with human rights cover the topics of plastic image and social and environmental issues specifically on social and labor aspects in the value chain, as well as diver- sity, equity and inclusion, among others. Complete information may be found in Human Capital and Social and Relationship Capital. Risk management 33 Integrated Report 2022 Message from the chairman of the Board of DirectorsMessage from the business leaderHighlights of 2022BraskemCompany's strategyGovernance, ethics and complianceCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summary 34 Human Capital Social and Relationship Capital Financial Capital Natural Capital Manufactured Capital Intellectual Capital Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryCapital performanceHighlights from 2022Human Capital GRI 2-23, GRI 3-3 202, GRI 3-3 401, 402, 403, 404 People are the foundation of Braskem’s strategy, so our team members are the protagonists of our history. Over these 20 years, we have improved our actions to respect and promote human rights by continuously acting to ensure a safe, diverse, inclusive work environment that brings opportunity for growth and development to all the people who are part of the company, taking into account the physical and mental well-being of all our professionals. Based on the importance of Human Capital to our business, we have made commitments for 2030 related to health and safety, as well as social responsibility and human rights. Health and Safety Dimension 1 CLICK HERE! Click on LEARN MORE! for more details about advances in the dimension. Social Responsibility and Human Rights Dimension 6 CLICK HERE! 35 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHuman CapitalHighlights from 2022Human Capital in numbers Focus on human rights Due dilligence on human rights 4% of terminations of employment were voluntary (+0.35 pp vs. 2021). 0.85 accidents rate with and without lost time (1MM HT) (-1% vs. 2021). 96% of human rights action plans carried out (+10 pp vs. 2021). +8,600 team numbers (+4% vs. 2021). 33% of our leadership positions are held by women (+2 pp vs. 2021). 15% of our leadership positions are held by black people (+2 pp vs. 2021). 4.17 in the well-being thermometer, considering the maximum score of 5 (+2% vs. 2021). Human rights are the focus of our commitments to 2030. For that purpose, we conduct our business to respect them, promote them and, if necessary, remedy them in accordance with the United Nations (UN) Guiding Principles on Business and Human Rights, the UNPGs. Our Global Policy on Sustainable Development, Codes of Conduct for members and third parties, as well as the proposed value to the member, the BeUx, reinforce Braskem's commitment to this issue. All these principles guide us towards a responsible business conduct; for that purpose, our starting point is the conduction of a due diligence in human rights, for the periodic identification of potential risks involving violation. We started the first cycle of due diligence on human rights at Braskem in 2017, based on global references and considering our operations in Brazil. In 2022, mitigation actions in relation to the risks identified in this analysis achieved the 96% mark. In 2021, we started a new due diligence on a global scale, conducted remotely because of the pandemic, with a continued focus on centering rights-holders in assess- ments. With respect to this, interviews were conducted with neighboring communities, team members and leaders, third parties and external experts, in addition to the analysis of documents, public information and information published in the media, resulting in, during 2022, the identification of risks and impacts on a global and local scale. We aim to manage 100% of high and medium human rights risks by 2030. We analyzed the risks to human rights mapped in relation to existing corporate risks – identified in accordance with the process set out in the Risk Management chapter. As a result, action plans designated for corporate risks already met most treatment recommendations for human rights. For those not envisaged, we are developing new action plans that will be integrated into corporate risks later. As a result of the process, opportunities for improve- ments were found in: Relationship with communities: communities are relevant stakeholders for us because they are neighbors to our industrial operations, where there are risks. For this reason we have implemented a number of actions to prevent negative impacts. You can find information on our main actions in the Social and Relationship Capital chapter. 36 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHuman CapitalHighlights from 2022 Supply chain: labor issues, slave labor, low visibility of the processes, among others, are problems that can affect any part of the supply chain, across all indus- tries. Therefore, we have adopted a series of proce- dures for evaluating third parties, in order to mitigate potential risks. You can find more details in the Social and Relationship Capital chapter. Disposal of plastic: the plastic supply chain is sub- ject to issues related to its disposal and, for this, we take a series of measures to return waste to the ap- propriate location, whether through the recovery of material or environmental education. You can find the main actions in the Natural Capital chapter. Occupational health: Given the nature of our oper- ations, team members are potentially subject to oc- cupational health-related risks, as well as the most recent concern over mental health. The COVID-19 pandemic has intensified our actions on these topics, with programs aimed at the integral health of people. More details on this topic can be found later in this chapter. Diversity, equity and inclusion: we operate in an ecosystem with different nations and cultures, each with their own complexities related to diversity, eq- uity and inclusion. As a way to adapt to the chal- lenges, we have implemented the Diversity, Equity and Inclusion Program, which will be covered later in this chapter. Value proposition to team member: BeUx GRI 3-3 202 We have consolidated our ambition to be recog- nized as a people-oriented company that promotes local development and human rights through BeUx, which reflects our most fundamental cultural ele- ments, through competencies that guide and are expected of our members, developed and assessed in 100% of the company. The annual performance evaluation process is based on these elements and guides the corporate initiatives and the individual development of the professionals. All members – including the business leader – have an Action Program (PA) with corporate and individual targets and behavioral competencies, aligned with the company’s culture. To evaluate the competencies dimension, in ad- dition to the traditional leader-led evaluation, we adopted the network evaluation format, which is a broader feedback system that also considers the view of peers and other members and leaders. In 2022, 100% of the members undergone this evalu- ation. It is important to note that the entire career management and development is defined based on these evaluations, and that the variable remunera- tion (Profit Sharing) results from a combination of factors evaluated in this process. GRI 404-3 The seven pillars of BeUx You are a protagonist and we base our relationships on trust. You are free to be yourself encouraging team members to be themselves, providing equal opportunities for all, without exception. Challenge and be challenged encouraging our team members to question prevailing thought. 1 7 2 Be proud of what you do by improving people’s quality of life and ensuring the development of the communities where we operate. 6 3 5 4 Co-create ideas to achieve our purpose of innovating as a team. Grow with us through ethical, transparent and successful performance. Build your own path by making challenging choices that take you out of your comfort zone. 37 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022GRI 403-3, GRI 403-6, GRI 403-1, GRI 403-2, GRI 3-3, GRI 403-4, GRI 403-5, GRI 403-6, GRI Health and safety 403-7, GRI 403-8, GRI 403-9, GRI 403-10 | SASB RT-CH-320a.1, RT-CH-320a.2 People’s safety is a non-negotiable value for us and we want all our team members to feel well and healthy in their working day at Braskem. As pointed out by the due diligence process in human rights, our industry is naturally subject to occupational health risks, intensified by the new work dynamics imposed by the pandemic. For this reason, we take a number of measures to promote the safety, health and well-being of people. Regarding safety, we operate based on the Human Reliability Program and work closely with third parties. We also adopted measures regarding the safety of processes logistics and products. Regarding health and well-being, we implemented the Integral Health Program and continuous improvement in occupational hygiene, as well as programs aimed at the well-being of team members, the re- sults of which were reflected in the Pulse Survey. Human Reliability Program Since 2018, we have consistently followed our human reliability journey – which is essential to achieving our 2030 health and safety goals. The pro- gram aims to reduce the tendency for errors and losses in operations and maximize production and operational efficiency, relying upon integration between people and technology in processes. In 2022, we conducted Human Reliability training for non-leaders in Mexico and the United States, and this process was started in Brazil, with more than 1,200 people taking part in the training, including team members and contractors, in all four countries, totaling more than 2,500 people trained in the subject since 2019. For 2030, our commitment is to reduce the accident rate, with and without lost time, to 0.5 accidents per one million hours worked. Technology at the service of safety Technology plays a key role in maintaining and ensuring the safety of all our professionals. Therefore, we started a digital ap- proach to our health and safety projects with a focus on four main pillars of action: Reduce human risk exposure with task elimination and automation. Improve skills and knowledge through training opportunities to build experience. Identify and prevent hazardous situations based on information and predictive maintenance. Adherence to procedures and processes with access, efficiency and application. Accident rate with and without lost time (1MM/HHT) GRI 403-9 Braskem's global rate of accidents with and without leave (CAF + SAF) in 2022 was 0.85 per million of hours worked, which corresponds to a decrease by 1% in relation to the 2021 rate. The reduction over the years occurred due to the increasing activities of the Human Reliability Program, which, since 2019, trains and guides members and third par- ties on this issue, as well as to the closer management of contractors with regard to HSE requirements. Other factors, such as the sharing of experiences and the disclosure of the safety rules, have also contrib- uted to an improvement in the occupational accident rate. 1.31 0.95 0.86 0.85 0.5 2019 2020 2021 2022 2030 38 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Process safety One of our goals in the health and safety dimension is to reduce the frequency of process accidents. To this end, during 2022 we focused on studies for the identification, analysis and mitigation of process risks that may affect the population surrounding Braskem industrial facilities or the environment. The frequency rate of Tier 1 and Tier 2 process ac- cidents was 0.43 (events per 1 million hours-man worked), 34% higher than the 2021 result, but the second lowest recorded by the company historically. In Tier 1 the rate was 0.08 in 2022, which corresponds to a 14% increase in relation to the previous year. The focuses on process safety were: Near Miss: improvement in the process for registering events and in the critical analysis process in the units. Mechanical Integrity: management of assets to ensure that important pieces of equipment are always suitable for the application for which they were designed, throughout their useful life, in their specific operation. The program integrates the corporate areas of industrial reliability and efficiency, prioritizing units and other areas based on the need to improve process safety. Risk Analysis: efforts to minimize the most significant risks of indus- trial units by conducting in-depth risk mapping studies and engineering studies and with investments focused on mitigating identified risks. The Tier 2 rate, on the other hand, was 0.35, com- pared to a rate of 0.21 in the previous year, which rep- resents an increase of 67%, and corresponds to the second best result of the last five years (2018-2022). Accident rate Tier 1 and 2 (1MM/HHW) 0.73 0.46 0.43 0.32 Occupational diseases GRI 403-10 2019 2020 2021 2022 Tier 1: Incident with loss of product containment above the limits established by the American Petroleum Institute (API) 754 for TIER 1 according to the released product or any release that causes: death of or injury to an employee or third party, hospital harm to or death of the external population, financial loss greater than US$100,000, or community evacuation. Tier 2: Incident with loss of product containment above the limits established by the American Petroleum Institute (API) 754 for TIER 2 according to the released product or any release that causes: accident without leave of an employee or third party and financial loss greater than US$2.5 thousand. In 2022, we had five reportable occupational diseases in Brazil, of which three are linked to hearing loss. In this matter there was an expressive reduction, by 91% in relation to 2021, because in that year many inves- tigations of previous years were concluded. We are continuously working to improve the occupational risk manage- ment. In this respect, we have developed a procedure with HSE directives for the construction of new projects or ventures. We also actively par- ticipate in the development of legal rules related to the efficiency of in- dividual protection equipment for noise and for carcinogenic chemicals. For 2030, our commitment is to reduce the accident rate of Tier 1 process to 0.05 accidents per one million hours worked. 39 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Integral health Two out of the five events of occupational disease relate to mental and be- havioral disorders. Over the past five years, this indicator has shown us the re- currence of such cases, and during the pandemic, structured actions for the promotion of a healthy work environment have become necessary. Since then, we have worked to provide members with care and activities aimed at people's integral health. Thus, in 2022, Braskem began the development of a Global Program of Integral Health and Well-Being - which initiative is divided into four pillars of like importance: physical, emotional/mental, social/family, and occupational health. The focus of this program is to encourage an increas- ingly humanized and welcoming work environment, raising health levels and es- tablishing a culture of well-being for our members. The program was structured in four phases: 1. Overview: interviews with Braskem’s main leaders and focus groups in Brazil, Mexico, Europe and the United States with representatives from the areas of Human Resources and Health and Safety. Workshops were carried out with the participation of representatives from other areas of the company, mainly from the Industrial area, to align expec- tations and analyze the Maturity Index. 2. Assessment: mapping of regional initiatives and structures devoted to health and well-being, in addition to administering a health and lifestyle questionnaire with the goal of standardizing global diagnosis (Health Risk Assessment). 3. Strategy: planned for Q2 2023, the evaluation of Phase 2 results to define the actions that will be implemented. 4. Implementation: the last phase will take place between 2023 and 2025. In 2021, we developed the Mental Health Program for lead- ership, in partnership with the Albert Einstein Hospital Research Institute, to provide training in topics related to mental health care. In 2022, we continued the program, to- taling 26 groups, and 466 participants, impacting on 60% of Braskem leaders in all the regions in which we operate. Another highlight is the Caring for People Program, cre- ated during the COVID-19 pandemic to welcome our team members and promote an increasingly humanized and collaborative work environment, based on the four pillars: mental well-being, social well-being, support for new ways of working and professional improvement. In 2022, the program produced 11 livestreams and a video, totaling 5,171 participants. And to extend the reach of mental health ac- tions, we offered four livestreams on Saturdays for teams that work on a shift basis. In the United States, the wellness team worked to raise awareness, on four core themes among team members: healthy eating, blood pressure, depression, and diabetes. In Mexico, the team reinforced physical and emotional health issues through the “Sentirte Bien” Program, fo- cusing actions on stress and resilience. In Europe, the team launched Breakfast Talks with the Leadership and made the Gympass available in Germany, encouraging and pro- moting physical health. For 2030, our commitment is to have zero occurrences of occupational diseases. Pulse Survey With the intention of evaluating the results of our ac- tions and work practices, we created the Pulse Survey in 2020. The survey is conducted twice a year and measures the perception of our team members regarding their ex- perience at Braskem, well-being and engagement, also supports for the preparation of new action plans. Key in- sights from 2022 include a sense of pride in belonging of our team members and the recognition that flexibility is a key factor for balance and well-being when adapting to new ways of working. Pulse Survey Global KPI Goal 4.00 Braskem's general weighted average in the year 2022 4.17 Maximum score 5 40 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Diversity, equity and inclusion Providing a diverse, inclusive and equitable environment for everyone is a priority for us. According to the conclusions of due diligence in human rights, multiculturalism is present in our daily lives, which pres- ents even more challenges to actions in diversity, equity and inclusion (DE&I). Therefore, we have set commitments for 2030 within the di- mension of social responsibility and human rights, in accordance with the particularities of DE&I in the regions in which we operate. For 2030, our commitment is to increase the share of women leaders globally to 40% and black team members in Brazil and United States to 37%. We have implemented several DE&I actions that, in 2022 were rein- forced by the establishment of a global corporate guideline, whose goal is to set global commitments in DE&I and direct our actions in all the regions where we operate. One of our efforts to make progress in this area is to increase the rep- resentation of minority groups. Within the pillar of race and ethnicity in 2022, globally we went from 30% black team members to 33%. We achieved this result through various initiatives such as: more inclusive selection processes, implementation of goals, reservation of some vacancies, awareness raising for leaders and team members, and a census of race and ethnicity, among others. In 2022, we conducted a self-identification campaign of Race and Ethnicity, reaching more than 6,000 team members in Brazil and more than eight hundred in the United States. This work helped us to get to know our team in more depth and aids us in driving forward internal initiatives and achieving goals. Diversity x-ray Women (%) 23 24 25 26 2019 2020 2021 2022 Women in leadership(1) (%) 40 30 30 33 31 2019 2020 2021 2022 2030 Black team members(2) (%) 30 30 30 37 33 2019 2020 2021 2022 2030 Black people in leadership(1) (2) (%) 15 13 13 13 2019 2020 2021 2022 (1) Leadership positions include: coordinators, managers, directosr, vice-pres- idents and business leader. To see the percentage of women for each hierar- chical level, visit https://www.braskem.com.br/ESGdashboard. (2) Only considers team members in Brazil and in the United States. 41 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Leadership training in diversity, equity and inclusion Continuing with the training of the most senior leaders in relation to DE&I initiatives in Brazil, we im- plemented individual mentoring sessions with vice presidents and the CEO. We also held as training for everyone in the Board responsible for people and organizational culture. Over the course of the year, more than 4,700 people participated in livestreams, training sessions and workshops on diversity, equity and inclusion issues. Inclusion of people with disabilities In 2022, we opened up new opportunities including vacancies reserved for people with disabilities. We carried out a survey of the accessibility of our offices. We created health care and people management protocols and raised awareness on the topic among leaders. We conducted a census to map team mem- bers who self-declare as having a disability, and an- alyzed their needs. The census was carried out at the offices in Brazil and had a 75% participation, equiv- alent to 1,079 members, with 12 people classified as having a disability after individual analysis of possible cases and medical evaluations. Undergraduate internship In the University Internship Program, we have es- tablished goals for hiring black and ethnic minorities (45%), women (50%), and people with disabilities (5%). To make the process even more inclusive, English is no longer mandatory for most positions. In addition, when assessing resumes, we do not look at information such as age, educational institution and previous experience. The logical reasoning test was replaced by a decision-making journey. In 2022, we launched the Black Journey with the goal of developing behavioral skills and providing other content to accelerate the inclusion of black people in the labor market; with this initiative, we reached more than 1,600 people in Brazil. In addition to the initiatives mentioned before, we also had some other advances such as our associa- tion with the Women Lead Movement of the Brazil Network of the Global Pact; membership of the Women’s Movement 360, becoming a signatory to the Open Letter of Support for LGBTQIA+ People, the creation of a diverse hiring area and reserved vacancies for minority groups; accessibility surveys and improvement in the processes for the inclu- sion of people with disabilities in the offices and the governance of affinity networks. Partnerships that merit special emphasis In the United States, Braskem maintains several partnerships that promote issues related to DE&I. Among them, we highlight: Women in Manufacturing: we are corporate members of the organization, which is the only national and global trade association devoted to providing year-round support to women in the manufacturing industry. Out and Equal: we are partners with the leading organization devoted exclusively to LGBTQIA+ workplace equality. Conselho DEI SPE: we are members of the Society of Petroleum Engineers (SPE) Diversity, Equity and Inclusion (DEI) Advisory Council. The goal of the body is to emphasize the importance of these issues and create resources for professional development, guidance and recruitment to be used by the teams of member companies. Bloomberg Gender-Equality Index In 2023, Braskem is on the Bloomberg Gender-Equality Index for the third consecutive year. The index lists publicly traded companies that commit to an inclusive work environment and offer a work-life balance. 42 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Social and Relationship Capital GRI 3-3, GRI 203, GRI 203-2, GRI 413 | SASB RT-CH-210a.1 People are the foundation of our business. For this reason we con- stantly strive to strengthen our relationship with all stakeholders. They help form the solid foundation that maintains the longevity of our busi- ness. Not only is this part of who we are, it also integrates with our sus- tainability pillar through our commitment to social responsibility and human rights. Social Responsibility and Human Rights Dimension 6 CLICK HERE For more details about advances in the dimension. 4343 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summarySocial and Relationship CapitalHighlights from 2022Social Capital in numbers Protecting communities R$33.3 million in investments with social and environmental impact (-14% vs. 2021). 82% engagement in the CDP Supply Chain Water (-5 pp vs. 2021). 610,200 people benefited from social actions (-20% vs. 2021). Average reputation with communities (+3% in points vs. 2021). 72% engagement in the CDP Supply Chain Climate (-7 pp vs. 2021). Good reputation with clients (+10% in points vs. 2021). R$74 million invested in associations (+63% vs. 2021). 44 We strive to act as agents of transformation within society and strengthen our relationship with the communities surrounding our operations. We believe it is our duty to contribute to the development of regions where we operate, generating shared value and well-being for all and promoting human rights in all of our relationships. The results of the human rights due diligence reinforce the work we have implemented over time with the communities that live in close prox- imity to our operations and which potentially could be negatively im- pacted. Therefore, we seek to strengthen the relationship and sustain our social license to operate through focusing on the promotion of actions that generate local development, respecting the specific characteris- tics of each region and establishing trusting relationships through dialog and transparency. Global social responsibility strategy ship and partners hi p r economy n o � a l e R la u c r i C To promote the circular economy as a business model that addresses the challenges of sustainability and/or as a means of environmental educa�on. Innova� Ethics a o n a n d t r n d l o a n s p c a l a r e n e n t To empower people to develop businesses with social and environmental impact, focusing on female or black and ethnic minority entrepreneurs r c e y p r e n e u r s h i p E q u i t y a n d in clusion To ac�vely promote and par�cipate in ac�ons aimed at educa�on, especially science, technology, engineering, mathema�cs and professional training. Educa�o n s i n u B e ss connec�on By 2030, we want to reach 500,000 people benefited by PSI (Private Social Investment), donations, and volunteer program. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summarySocial and Relationship CapitalHighlights from 2022 Socio-environmental impact Based on the global social responsibility strategy, we invest in social and environmental impact projects in all locations where we operate. This is accomplished through donations, sponsorship, ISP, and the Global Volunteer Program, which primarily address three long-term causes: education, circular economy, and local entrepreneurship and innova- tion. In addition, we also invest in projects according to the character- istics of each location. In 2022, we carried out 153 social actions that benefited more than 610,000 people globally, including ISPs, donations, emergency cam- paigns, and volunteering. More than R$33 million were invested. Global social impact(1) Investment (2) People benefited(3) Total initiatives Brazil R$27,302,853.42 R$4,441,550.47 392,777 54,789 R$1,556,772.00 162,403 R$5,427.87 220 Mexico United States Europe General total R$33,306,603.76 610,189 153 75 37 39 2 (1) Includes private social investment, donations, and volunteer actions. (2) Includes investment in initiatives that will start only in 2023. (3) Includes the result of initiatives that were paid in previous years, with or without fiscal incentive, but with execution in 2022. CLICK HERE See the key programs and their impacts in 2022. 45 In 2022, we concluded the community engage- ment review in Bahia, completed the project in Rio de Janeiro, São Paulo (ABC), and Alagoas, and started building the framework in Rio Grande do Sul and Mexico. Our community engagement methodology seeks to establish an integrated and strategic vision of the relationship actions with the communities in each of the regions where we operate, by means of the identification of potential impacts, whether positive and nega- tive, associated with our operations and the char- acteristics of each community. Impacts assessed in the community engagement framework: Environmental Impacts, identified by the Environmental, Health and Safety Guide- lines for Petroleum-based Polymers Manu- facturing of IFC. Social and economic Impacts, identified by the GRI, Community aspect. Impacts related to the guarantee of human rights, identified by Braskem's human rights due diligence. This framework analyzes impacts on three levels: environmental, social and economic, and human rights. In addition, the evaluation criteria con- template the impact responsibility, perception of the impact by the community, and materiality of the potential impact. Social dialogue We keep an open dialogue with all the commu- nities located in the vicinity of our operations, through participation in the Advisory Community Councils (CCC)(1), the communication channels directly related to the industrial units, and the Ethics Line, as well as through associations of companies of the petrochemical centers where we operate. We also keep open, in Brazil, the Program Formando Laços [Forming Ties], which focuses on receiving in our industrial units visitors from schools, universities, customers, suppliers, the community, and governmental and non-gov- ernmental institutions, the press, among others, to know our processes and facilities. In 2022, in-person visits were resumed, and we received more than 1,580 people from the communities throughout the year. Datafolha Survey In 2022, we conducted a survey in Brazil with the support of the Datafolha Institute. The purpose thereof was to bring important information on the communities in the vicinity of Braskem's opera- tions, such as profile, characteristics, habits, and perceptions, especially in relation to Braskem's image and on important issues to format the com- pany's social actions in the regional offices. This enabled us to check the degree of knowledge of the communities in relation to the petrochemical centers, as well as to identify the strengths and vul- nerabilities of the industry and of the company, which will help us to delimit actions involving relationship, communication, and investment in social projects. (1) Committee organized by companies that are part of the petrochemical centers in which Braskem has oper- ations. Other companies of the territory and represen- tatives of the communities participate in this forum. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Support to the communities Our actions with the communities have global reach and involve all locations where we operate or nearby regions affected by our business. They involve not only donations, but also volunteer work, educational programs, and initiatives aimed at protecting the environment. In Brazil, we announced the first edition of a public bid – Projetos que Transformam [Projects that Transform] – to select and support social projects devoted to the local and sustainable development of the communities where we operate. The bid notice selected 17 initiatives that received, in the aggregate, R$1 million, and their representa- tives attended four free virtual training sessions relating to project management and accountability aspects. Corais de Maré The Corais de Maré project promotes resto- ration of the All Saints Bay (Baía de Todos- os-Santos) reef. For that purpose, a new technique was developed using plastic and other recyclable materials to enhance the growth of the species Millepora alcicornis in seedbeds built using the skeleton of the sun coral, which is a species considered inva- sive in the region. The technology is tested since 2022, on the sea bottom of Maré Island (Ilha de Maré), with the participation of re- searchers, environmentalists, and fishermen. The initiative seeks to recover part of the reefs of the All Saints Bay, the quantity of corals of which was reduced by about 50% since 2003, according to a survey conducted by UFBA researchers. These ecosystems are essential for biodiversity, since they shelter at least 25% of the marine species, and they also contribute to economic and food secu- rity of the population of coastal towns, ac- cording to studies conducted by the Global Coral Reef Monitoring Network (GCRMN). 46 In Mexico, our industrial plant in Veracruz is close to the Municipalities of Coatzacoalcos and Nanchital, where community meetings were held in the com- munities of Nahualapa, Pollo de Oro, and Lázaro Cárdenas, with the total participation of 141 residents. The purpose of these meetings was to discuss the implementation and results of the social programs and the program on maintenance downtimes. In addition, several special topics were discussed in each commu- nity, and a space was provided to hear feedback from the commu- nity and answer to questions. One of our plants in the United States is located near a residential area, in Marcus Hook, Pennsylvania. In 2022, we attended five Marcus Hook Environmental Advisory Committee meetings and maintained an active relationship with local representatives to ensure that we are helping to meet the community's needs and expectations. In that year we funded, through private social investment, a new waste collection center for residents to recycle household plastic waste, pro- viding access to recycling. In addition, within the Volunteer Program, we partnered with Keep Pennsylvania Beautiful and the Marcus Hook Borough to conduct a clean-up and focused on areas near the Marcus Hook creek to remove plastic waste from the natural environment. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summarySocial and Relationship CapitalHighlights from 2022Emergency donations We carry out five emergency donation actions to support families in Bahia, Petrópolis (RJ), and Maceió (AL), who suffered from the heavy rains that affected these regions. In all, more than 121,000 people have been benefited and more than R$3.3 million have been invested. We also make donations to combat the hunger and vul- nerability resulting from the pandemic. We carry out two initiatives: the voluntary donation by members, in which Braskem quintupled the amount donated, and direct dis- bursement by the company, in the amount of R$5 million, for the acquisition of food baskets. Both actions ben- efited more than 178 thousand people with 56.7 thousand food baskets donated. Global Volunteer Program One of our main initiatives in favor of the communi- ties surrounding our operations is the Global Volunteer Program, which originated in 2017 from our wish to in- creasingly strengthen our relationship with people in order to encourage our members to perform volunteer actions that generate a positive social impact on the communities. We note that, in 2022, there was a reduc- tion in the number of benefited persons if compared to 2021, because in that year we made relevant emer- gency donations related to the Covid-19 pandemics and to fight hunger. Total number of volunteers: 1.4 thousand (1,091 members and 331 guests) in 6 countries. Number of benefited people: 37.2 thousand. Acknowledged initiative In 2022, the Volunteering Games (Gincana de Voluntariado) received the Aplaude Award from the Brazilian Corporate Volunteering Council (CBVE), in the category Engagement Initiative. In Mexico, we received the award Mejores Prácticas de Responsabilidad Social Empresarial, 23rd edition, from the Mexican Philanthropy Center (Cemefi). In the United States, we were acknowledged as Cleanup Champions by the Plastics Industry Association (Plastic), due to the cleanup task forces carried out throughout the year. 47 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summarySocial and Relationship CapitalHighlights from 2022Maceió Case Support to residents Braskem has the non-negotiable value of the safety of people and, since the occurrence of the geological event in some neighborhoods of the city of Maceió (AL), in 2018, this has been the main priority, in view of its commitment to safety and social responsibility. Associated with this action, the company has carried out a series of actions related to the preventive evacuation of risk areas, financial compensation, geological stabilization and referral of unoccupied areas. Below are some of these key actions: The Financial Compensation and Relocation Support Program (Programa de Compensação Financeira e Apoio – PCF), created in December 2019 with the purpose of pre-emptively relocating residents, as well as accelerating the compensation process, has achieved its goals and reached the end of 2022 with more than 98% of the families already relocated from the areas considered to be at risk. About 97% of residents have also received compensation pro- posals with an acceptance rate of 99.6%. The PCF is an integral part of the Agreement entered into between the Public Prosecutor’s Office, Defenders and Braskem, whereby, in addition to relocation and compensation measures, the program encompasses fi- nancial support and technical support services, such as rent assistance, the cost of the changes, coatrooms, pet storage during the change period, real estate consulting, service channels, support in opening bank accounts, partnering with notary offices to issue documents and certificates, among others. The program has social technicians, facilitators for the process of financial compensation, legal and psychological support, all committed to seeking the best solutions for the residents of the region. This psycholog- ical support service that the company offers is free for all families residing in the areas of evacuation and monitoring and who are included in the PCF. By the end of 2022, more than 33,000 visits have been conducted. The PCF has completed its third year of existence having fulfilled the scope defined in the Agreement and, so far, out of a total of approximately 19,000 entries made to the program, more than 18,600 have already re- ceived the proposal for financial compensation, approaching its closing. Plan for Closing and Monitoring the Salt Mines Throughout 2022, the Company continued to make its best efforts to adopt the necessary and appropriate measures to resolve the issues arising from the geological phenomenon, fully complying with all com- mitments assumed. The actions for closing and monitoring salt wells follow the mine closure plan approved by the National Mining Agency (Agência Nacional de Mineração – ANM), aiming at stabilization of the cavities. The interpretation of the monitoring data makes it possible to observe a reduction of the ground movement velocity, which will con- tinue to be monitored, even after the completion of actions planned for the coming years. The actions of filling the wells with sand, belonging to the first group of 4 cavities, are in an advanced phase, with the mon- itoring of the ANM, and expected completion for the 1st half of 2023. Actions have already been initiated to fill the second group, of 5 cavities, according to the planned schedule. 48 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Socio-urban and environmental remediation measures Braskem has been moving forward with the adoption of measures, es- tablished in the Socio-environmental Agreement, signed on 12/30/2020 with the Federal Public Prosecutor’s Office, to repair, mitigate or com- pensate potential environmental and socio-urban impacts resulting from the activities of rock salt extraction. In 2022, the Social Action Plan was prepared as a development of the work of the Technical-Participative Diagnosis, resulting in the proposal of initiatives that are divided into: Axis 1 - Social policies and reduction of vulnerabilities; Axis 2 - Economic Activity, Labor and Income; Axis 3 - Urban and Environmental Renovation; and Axis 4 - Preservation of Memory and Culture. The current stage is a technical discussion of the diagnosis with the competent public bodies. The proposal for Potential Projects of social actions keeps evolving, to support the discussions between the agencies involved, as well as the conduct of public con- sultation about the proposed diagnosis. The Socio-environmental Agreement also provided for the making of a diagnosis to evaluate the potential environmental impacts resulting from the extraction of rock salt and the preparation of an environmental Plan with detailed proposals for measures. This diagnosis has already been concluded and resulted in the preparation of an Environmental Action Plan, which is in the process of discussion with the authorities, following the procedure provided for in the Socio-environmental Agreement. As an integral part of the transformation agenda and future referral of the vacated areas, the works of the Stabilization and Drainage Project of the Mutange Coast were started in January 2022, whose scope en- compasses demolition, earthworks, construction of drainage system and planting of vegetation cover in the area involved, with completion planned by the end of 2023. Also in 2022, the Partial Adherence Agreement of the Municipality of Maceió to the Socio-environmental Agreement was signed relating to eleven Urban Mobility actions in the region, of which two have already been initiated and continue to move forward. There are al- ready about 300 workers involved in these two ac- tions, and the implementation of each of the planned actions, in addition to expanding the generation of jobs, will bring benefit to the locations where they will be implemented, as well as to the city as a whole. Urban integration of Flexais In October 2022, we signed an agreement with the com- petent public bodies to implement renovation mea- sures in the Flexais region, located in the Bebedouro neighborhood, considering the socioeconomic islanding of this area, after the PCF relocation process. The Urban Integration and Development Project of Flexais expects to complete the 23 renovation actions in two years, based on initiatives to improve living con- ditions and access essential utilities. There will also be payment of financial support to residents, vacant property owners and merchants. Communication Since 2019, through social dialog with community leaders and merchants, information has been col- lected and questions have been clarified about the PCF and about works and interventions in the areas, among other topics. Active listening is also con- ducted that receives the demands of communities and seeks to support their resolutions, in addition to seeking opportunities for cooperation to mitigate local impacts. There are various channels of direct contact with families, with messaging application support and an 0800 Service Center. As of December 2022, approxi- mately 224,000 telephone calls have been made. In addition, access to information about the actions re- lated to Maceió is broad and transparent, through the website www.braskem.com.br/alagoas. The platform also provides regular accountability of the activi- ties performed. In addition to social media channels, Communication relies on the Braskem Explains campaign, published in the main local media, to en- sure that the most up-to-date information is always available and accessible. Next steps In 2023, the priority will be to complete the final relocation support measures provided for in the PCF and, as well as the latest financial compensa- tions, in addition to proceeding with the safe clo- sure process of the 35 wells in the region, with this expected to last until 2024. In addition to these actions, the company will proceed with urban mo- bility projects, the agreed renovation actions of the Flexais region and the forwarding actions of the unoccupied areas. The company will also move forward with the ex- ecution of the environmental plan and the defi- nition of potential social action projects in the surrounding region. 49 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Proximity with customers Our broad and diverse portfolio includes products that contribute to the productivity and competitiveness of clients in a variety of indus- tries. Together, we seek to develop sustainable solutions that posi- tively impact the entire production chain. This is the case with life cycle analyses, certified raw materials with renewable and circular content and recently the offer of carbon credits to offset emissions in the transportation of goods. In order to strengthen our relationship with clients and present our en- tirerange of solutions – their features, applications and degrees – we participate in various events throughout the year. In 2022, we partici- pated in Expobor, Agrishow, Abrafat, all in Brazil, and K Fair, in Germany. By 2022, Braskem had already completed 116 LCA projects in partnership with its customers. K Fair In 2022 we also attended the K Fair, held in Düsseldorf (Germany) that happens every four years. One of the highlights was the launch of Wenew, a global circular economy ecosystem that encompasses circular technologies and products, and education initiatives on con- scious consumption and proper disposal. Another important point of our participation was the presentation of innovation initiatives, such as Cazoolo to Oxygea and the Center for Technology and Innovation (CTI), at the petrochemical hub of Triunfo, in the south of Brazil. We also introduced Smartrails, a solution for our clients that replaces wooden sleepers with railway sleepers made of plastic. The coating is made of polyethylene with fiberglass and high-density polyethylene blocks. Reputation survey Braskem has been monitoring its reputation since 2010 through an annual survey carried out with various stakeholders. The survey looks at emotional issues, degree of esteem, admiration, empathy and trust. It also uses rational indicators in seven dimensions: products and services, innovation, work environment, governance, citizenship, leadership and performance. In 2022, Braskem’s score was with a strong reputation. We show significant growth of the reputation in- dicator for communities around our operations in Brazil. We have also made a positive highlight for our reputation with society in general in Brazil, with growth in the reputation indicator for the second con- secutive year. Highest historical score at Ecovadis Since 2009, we are invited by our customers to participate in Ecovadis' social and environmental eval- uation. We used efforts to improve the answers to the questions of the questionnaire and, in 2022, we obtained Braskem's highest historical score in the evaluation, reaching 68 points, against 62 points of the classification of the previous year. 50 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Socio-environmental engagement GRI 3-3 308, GRI 308-2 Regarding sustainability aspects, we consolidated our partnership with Ecovadis, one of the world’s largest global supply chain sustainability rating companies, to evaluate the environmental, social and gover- nance management of the supplier base. In 2022, we had 200% growth in the evaluated supplier base, which demonstrates the engagement of our supply chain on the topic. In addition, we also achieved the engage- ment of 270 suppliers in the assessment of CDP Supply Chain Climate and CDP Supply Chain Water, with engagement rates of 82% and 72% respectively. Also worth highlighting is Braskem’s partnership with Childhood Brazil in the fight against sexual exploitation of children and adolescents on the highways, given its road distribution matrix. Supplier management GRI 3-3 204, GRI 205, GRI 304, GRI 308-1, GRI 3-3 410, GRI 3-3 414, GRI 412-3 2022 was also a year of strengthening relationships with our suppliers, contributing to the achievement of greater reliability, competitiveness, safety and efficiency for our operations. In addition, we have strengthened our actions in Sustainability through initiatives that promote the engagement and devel- opment of our partners on the topic. From the registration process onward, our suppliers are invited to get to know and sign our Third Party Code of Conduct, which expresses their expecta- tions about the conduct of partners working with Braskem. For more critical sectors, such as sug- arcane ethanol, we also have exclusive codes and criteria for supply, whose compliance with the stan- dards required by the company is essential for the formation of the partnership. Recycled plastic suppliers, in turn, are subject to a specific checklist and due diligence and subject to frequent audits. In addition, in the Registration pro- cess itself, a survey of information from each partner is carried out with the goal of evaluating and classi- fying the risk exposure with regard to environmental aspects; labor and human rights aspects; ethical aspects; and/or financial aspects of Braskem as re- gards this new relationship and consequently acting with the establishment of possible mitigating plans if the relationship materializes. Assessment of ethanol suppliers The human rights due diligence process has reinforced what had already been identified a few years ago: the existence of risks associated with the ethanol supply chain, made from sugarcane, which is used for the production of I’m greenTM polyethylene. Since 2016, we have implemented the Responsible Sourcing of Ethanol Program to ensure integrity and sustainability practices in the cane chain through audits of suppliers and sub-suppliers. The program is structured into two pillars: compliance and excellence. The compliance pillar establishes the operational standards expected for the management of human resources, the environment, local communities, quality, and efficiency. The pillar of excellence refers to a Continuous Improvement Program, focused on issues relevant to the ethanol chain. In 2022, we revised the Program to broaden the themes addressed, reinforce governance requirements, and further mitigate risks in the chain. CLICK HERE For more details of our I'm greenTM recognitions and certifications. 51 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Recognition As a result of the consolidation of these part- nerships, in 2022, we held the second edition of the Braskem Supplier Sustainability Recognition award, which highlights the ESG best practices of our suppliers and encourages our supply chain to take actions in socioenvironmental performance, human and labor rights, the envi- ronment, ethics and sustainable Procurement. In this process, the companies were evalu- ated based on their scores in the Ecovadis, and Carbon Disclosure Project (CDP) question- naires, resulting in the recognition of 24 sup- pliers that stood out the most in the period. The online event had an audience of more than 1,000 Braskem suppliers worldwide. Partnerships that transform Since 2021, we have been working together with BASF on projects aimed at accelerating two crucial points for the chemical sector: recycling and carbon neutrality. In 2022, the partnership prioritized five actions, two of which are being implemented and one will start in 2023. One of them is the use of maritime logistical assets through the partnership, with the objective of optimizing idle capacity and reducing impacts on emissions of greenhouse gases (GHG). The partnership also resulted in an agreement, valid from 2023, in which Braskem supplies propylene with a circular attribute through the concept of mass balance, certified by the International Sustainability and Carbon Certification (ISCC). It is worth noting that the sustainable solutions made possible by the partnership with BASF are scalable and may be extended to other Braskem customers. 52 Supplier management GRI 204-1 2022 was also characterized by a volatile economic and supply scenario arising from the pandemic. In this context, expenditures with local suppliers of goods, services and Supplies totaled R$13.5 billion (79% of total expenditure). Expenses with local suppliers by region(1) (%) Local Non-local 83 17 98 2 71 29 64 36 Brazil United States Europe Mexico (1) Suppliers of goods, services and inputs. Risk management in input procurement We review the input supply chain risk management process, creating global indicators and setting priorities by region and country, enabling the implementation of risk mitigating actions according to the degree of vulnerability presented. Such actions have also allowed us to im- prove business relationships and product procurement strategies that are indispensable for our production processes, since this mapping is not limited to looking at only our main suppliers, but the entire supply chain and any potential impacts we are subject to. Foreign trade compliance and safety Another standout front in 2022 was achieving the low-risk operator rating through the Authorized Economic Operator (Operador Econômico Autorizado, OEA) Certification in the Safety category, resulting in greater agility and predictability of loads in international trade flows. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Acting with government and associations GRI 2-28 Investment in class associations Region Brazil USA Mexico Europe and Asia Total Investment in 2022 (R$) Number of entities 47,027,128.38 15,125,842.26 4,500,410.72 7,577,297.44 74,230,678.80 61 18 6 9 94 In an ethical and transparent manner, we want to contribute to discus- sions for the formulation of public policies related to the development of the petrochemical industry, the elimination of plastic waste and the fight against climate change, fundamental topics for the development of our industry and our business. In order to improve our governance and intensify our initiatives on topics that impact different regions, we created the Global Advocacy area in 2022. An integral part of the Institutional Relations board, the new area, in support of Sustainable Development strategies, will focus on the cre- ation of a governance system for the exchange of information among the various Institutional Relations teams in the different regions, the mapping of public policies and global impact initiatives and the mapping of stakeholders for the development of global positions on these fronts. At the end of 2022, along with other members of the International Council of Chemical Associations (Conselho Internacional de Associações de Produtos Químicos – ICCA), we participated in the first round of negoti- ations seeking to reach a global agreement to eliminate plastic pollution. This round was the first in a series of agendas due to continue until 2024 to come up with a global proposal covering all stakeholders in this chain. We are also involved in discussions to develop public policies aimed at regulating the handling of plastic waste, especially in Brazil and Europe, which will support us in overcoming challenges in the recycling chain. Also at the end of the year, we participated in several events during the 27th UN Climate Conference in Egypt to present our strategy to combat climate change and key projects towards carbon neutrality. We also con- ducted several interactions with government officials, partners and cli- ents during the event. 53 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Financial Capital GRI 3-3 201, GRI 201-1, GRI 203, GRI 413 | SASB RT-CH-210a.1 It is essential for us to seek economic and financial results based on a solid development strategy, on constant strengthening of ESG prac- tices, on long-lasting relations with our customers and, consequently, on the increase in the value generated for shareholders. We understand that this is a key issue to enable our commitments of 2030 and 2050. For that purpose, we are continuously working to guar- antee the integrity of our production chain, the strengthening of our governance and compliance system, and the maintenance of a strong level of liquidity and positive cash generation, even in down cycle pe- riods in the petrochemical industry. Economic and Financial Results Dimension 2 CLICK HERE For more details on advances in the area of economic and financial results. 54 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryFinancial CapitalHighlights from 2022Financial Capital in numbers US$929 million R$3.3 billion in cash generation (-66% vs. 2021). in corporate investments (-8% vs. what was estimated). 2.42x corporate leverage (+1,48 pp vs. 2021). Recurring EBITDA: US$2.1 billion (-64% vs. 2021). The good performance of the company’s financial capital over 20 years of existence is the result of a strategy based on discipline in capital allocation and focused on value generation, risk mitigation, and identifying and seizing opportunities. 55 Cash generation Investments We ended the year with recurring EBITDA of US$2.1 billion, 64% lower than 2021, an amount explained by factors such as the drop in international spreads of PE, PP and PVC in Brazil, PP in the United States and Europe, and PE in Mexico, as well as the lower volume of sales of major chemicals in the Brazil and PP seg- ment in the United States and Europe. In turn, the recurring cash generation in 2022 was R$6 billion due to the recurring EBITDA for the pe- riod, the variation in working capital, and the compa- ny’s operational and strategic investments referring mainly to the disbursements of scheduled mainte- nance stoppages made in 2Q22 and the construc- tion of the ethane import terminal in Mexico and the expansion of biopolymer capacity in Rio Grande do Sul, respectively. Adding the payments relating to the geological event in Alagoas, the Company presented a cash generation of R$3.3 billion. Liquidity and indebtedness We finished the year with gross debt of US$6.8 bil- lion, with 96% of maturities concentrated in the long term and 4% in the short term. In line with the strategy of maintaining a robust cash position and given a volatile and unstable scenario for borrow- ings in the international market in 2022, Braskem once again accessed the local market, issuing four operations totaling R$3.7 billion. Finally, corporate leverage, as measured by the recurring net debt/ EBITDA ratio in dollars, was 2.42x. In 2022, we invested US$149 million in projects re- lated to the seven dimensions of the sustainable de- velopment strategy, distributed as follows: Dimension 1 - Health and safety 2 - Economic and financial results 3 - Elimination of plastic waste 4 - Combating climate change 5 - Operational eco-efficiency 6 - Social responsibility and human rights 7 - Sustainable innovation Total 2022 (US$ MM) 2023e (US$ MM) 16 - 3 92 24 9 5 77 - 4 47 35 7 24 149 194 Note: Investments by dimension do not consider investments in scheduled mainte- nance shutdowns, spare parts for equipment, among others. The key projects of the year related to the commit- ments for Sustainable Development were the expan- sion of biopolymer capacity in Triumph, initiatives to reduce CO2e emissions and energy efficiency of plants and projects related to industrial safety. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 ESG value ESG Day 2022 represented the consolidation of the sustainability strategy to our corporate strategy. In October, we held the second ESG Day, a hybrid event where we presented our advances in sustainability and reinforced our com- mitments for 2025, 2030 and 2050, which focus on three pillars: social responsibility and human rights; plastic waste disposal and combating climate change. There were about 730 participants including investors, journalists, banks and Braskem team members. The event had a positive impact with the media and among sell-side analysts, who make recommendation on buying, holding or selling stock. CLICK HERE To download our ESG Day presentation. Click here to access the event recording. Credit lines In 2022, we secured our first corporate credit line tied to a sustain- ability-linked goal (Sustainability Linked Loan, SLL). We have signed two contracts with international financial institutions totaling US$150 million tied to the growth in sales volume of Green PE I’m greenTM bio- based in the coming years, there are incentive and penalty mecha- nisms tied to the achievement of the established KPI. Also in 2022 we conducted a local debt issue. This is the 124th issue of agribusiness receivable certificates (Certificados de Recebíveis do Agronegócio – CRA), backed by credit rights in the amount of R$720 mil- lion, by the Eco Securitizadora de Direitos Creditórios do Agronegócio. Our goal is to apply resources exclusively to the acquisition of ethanol from rural producers. LEARN MORE! In Manufactured Capital. Investor relations In 2022, we launched the Braskem Invest podcast. The channel, avail- able on different platforms, covers information related to the compa- ny’s performance in its strategic pillars and the petrochemical sector, in addition to offering analyses and views on the company and the fi- nancial market. LEARN MORE! About our Investor Relations initiatives. Click here to access Braskem Invest. 56 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Natural Capital GRI 3-3 416 We have sustainability as one of the pillars of corporate strategy and business growth. Through our initiatives and processes, we transform natural, renewable and non-renewable resources into chemical and plastic products, seeking to reduce and mitigate environmental and so- cial impacts. Our focus is on combating climate change and eliminating plastic waste, seeking to be a benchmark in operational eco-efficiency in our opera- tions in relation to water and energy consumption and effluent genera- tion, atmospheric emissions and waste. Elimination of Plastic Waste Dimension 3 CLICK HERE Combating Climate Change Dimension 4 CLICK HERE Operational Eco-efficiency Dimension 5 CLICK HERE For more details on advances in the dimension. 57 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryNatural CapitalHighlights from 2022Natural Capital in numbers 18.6 million tons in raw material consumption (-3 vs. 2021). ˜20 million m³ in the generation of effluents (-3% vs. 2021). 71.2 million m³ in water consumption (+1% vs. 2021). 50.6 thousand tons in waste generated (+23% vs. 2021). 10.7 million tons in GHG emissions (scopes 1 and 2) (-2% vs. 2021). 33.5 thousand in plastic waste recovered (+89% vs. 2021). Combating climate change At Braskem, we assumed the commitment to reach 2030 with an absolute 15% reduction in greenhouse gas emissions (GHG) in scopes 1 and 2 – in relation to the average of the years 2018, 2019, and 2020 – and to achieve carbon neutrality by 2050. In addition, we committed to expand our bioproducts production capacity to 1 million tons. For that purpose, we have adopted an action plan composed of three pil- lars of operation: reduction of emissions in our opera- tions, removal of biogenic carbon with stock in product and carbon capture/conversion into chemicals. In 2022, we mapped potential projects to achieve these commitments by means of the development of a Marginal Abatement Cost Curve (MAC curve) of GHG emissions. Based on this study, we devel- oped a global route of initiatives of various levels of maturity and complexity, with different expected development horizons. Volume of GHG emissions (million tCO2e - average of the last three years) The global curve mapped 161 projects with potential to reduce 3.4 million tons of CO₂e: Short term: efficiency projects and energy ma- trix replacement. Medium-term: projects for the use of renewable raw materials. Long-term: technology development projects for carbon capture and use. The MAC curve allowed us to review and improve the internal cost of carbon, which is used since 2016 to analyze the feasibility of investment projects consid- ering the variable of GHG emissions. Since 2021, this analysis is mandatory for certain lines of investment and it is based on a tool developed internally. The tool calculates the cost of the estimated emission of a project based on its technical specifications. 10.87 2020 10.76 2022 9.2 2030 0 2050 LEARN MORE! About our strategy to combat climate change in the chapter Braskem’s Strategy or click here to access our page with a progression of the goals. 58 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryNatural CapitalHighlights from 2022 Inventory of GHG emissions Scope 1 emissions Since 2008, we account for the emissions of Braskem’s operations and publish the results in a GHG inventory, which currently follows the operational control approach, contemplating our global emissions of scopes 1, 2, and 3, and which is annually verified by an independent third party. The inventory is our main tool to monitor our qualitative evolution in relation to the reduction targets of our climate change strategy. The inventory observes the guidelines of The Greenhouse Gas (GHG) Protocol – Corporate Accounting and Reporting Standard – Revised Edition from World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) – 2004 Revised Edition and the Specifications of the Brazilian Program GHG Protocol: Accounting, Quantification, and Publication of Corporate Inventories of the Greenhouse Gas Emissions – Second Edition and is verified by an external third party. Most of Braskem’s scope 1 emissions – 90% in 2022 – occur in our pet- rochemical centers (crackers), where the raw material (of fossil and/or renewable origin) is transformed into plastic products, chemicals, and specialties in an energy-intensive process named cracking. With the reduction in the amount produced in 2022 compared to the previous year, our crackers did not operate at their optimal energy efficiency. As a consequence thereof, even with a smaller production, our GHG emissions of scope 1 remained stable in relation to 2021, with a small increase by 0.58%. Emission map GRI 3-3, GRI 305 Scope 3 - upstream 38% Scope 1 – direct emissions 26% Scope 2 – indirect emission 2% Scope 3 – downstream 34% Emission of greenhouse gases(1) GRI 305-1, GRI 305-2, GRI 305-4 0.668 Scope 1 (tCO₂e) Scope 2(2) (tCO₂e) Intensity (Scope 1+2, tCO₂e) Production (t) 0.623 16,932,289 801,633 9,750,862 16,092,170 765,287 10,021,191 0.637 17,059,721 0.643 16,569,637 881,089 9,987,076 605,702 10,045,179 Scope 2 emissions GRI 305-5 Braskem’s scope 2 emissions presented a reduction if compared to 2021, in the market-based approach (-31.26%). Even though the electricity and vapor consumption remained stable in relation to the previous year, the emission factors of the intercon- nected systems (grid) in which we operated were reduced, most ex- pressively in Brazil, were the factor dropped by almost 66% due to the good performance of the hydroelectric plants (which was less frequent in 2021 due to the water crisis). Since the electricity consumed in Brazil originating from the grid represents a little more than 60% of the total consumption of scope 2 (electricity and vapor, the impact on emissions was considerable. In addition, the reduction by 31.26% reflects the renewable and clean energy purchase agreements in Brazil, Germany, and the United States, strategy under implementation since 2018 and which has already brought important results in the inventory. 59 (1) The reference values for potential global warming (GWP) have been changed and are in line with the IPCC Fifth Assessment Report (AR5). (2) Market-based, the approach of measuring Scope 2 GHG emissions using a specific emission factor directly associated with the source of the generation of purchased electricity. 2019 2020 2021 2022 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022In 2022, we were awarded the gold classifica- tion of the GHG Protocol Brazilian Program (PBGHG) for the 12th consecutive time. This is a result of the coverage of the emissions (scopes 1, 2, and 3) and of the verification by an accredited third party in the 2021 inventory. At the CDP Climate, we were awarded grade B. Scope 3 emissions GRI 305-3 In 2022, Braskem's scope 3 recorded 27,281,767 tons of CO₂e considering all categories reported relating to the upstream and downstream emissions of our value chain. This amount includes the report of 12 cat- egories out of the 15 categories applicable to scope 3, it being understood that categories 2, 13, and 14 do not apply or are not material for our business. Considering the entire chain, the scope 3 emissions represent 72% of its total emissions for Braskem. Upon analysis of the results, we note that 85% of the total scope 3 emissions are concentrated in three categories, which are: 1- Goods and services pur- chased; 10- Processing of products sold; and 11- Use of goods and services sold. This distribution profile is very similar to companies of our industry due to the purchase of fossil raw material and of the pro- cessing carried out by our customers in the transformation of resins and use of the energy products sold. In absolute numbers there was a reduction of 9% compared to 2021, mainly leveraged by a reduction in raw materials as a consequence of the reduction in the company's total production volume in the period, use of more accurate emission factors for transport (categories 4 and 9), reduction of the grid emission factor, border adjustment (category 15) and disre- gard of waste and effluent emissions from Cetrel in scope 3. Representativeness of each category in the total scope 3 emissions (%) 44.8 25.6 14.7 Category 1 Raw material acquisitions Category 10 Processing of products sold Category 11 Use of goods sold Category 12 End-of-life treatment of products sold Category 3 Fuel and energy related activities Category 4 Transport and distribution (upstream) 7.7 3.0 2.8 Category 9 Transport and distribution (downstream) 1.0 Other categories 0.4 Review of the corporate inventory process In 2022, we reviewed the greenhouse has emission management process, which is a fundamental initiative to consoli- date and bring more assertiveness to the corporate inventory. While listening and understanding the new process, we identified three main frons for the inventory as a unified corporate GHG emissions management tool: quantita- tive monitoring of corporate emissions reduction targets with the Industrial team; monthly monitoring of the plant emissions to understand the impact of “real-time” decision making; and to fore- cast future emissions of our operations considering potential future projects. 60 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Industrial Decarbonization Program To achieve the emissions reduction commitment set for 2030, in 2021 we developed a program dedicated to industrial decarbonization. The program is based on three fundamental pillars: GHG Inventory, the basis for proper management of the topic; Culture, Process and Governance, which includes the development of an industrial mentality focused on operating and identifying improvements that can reduce greenhouse gases emission, strengthen the orientation of processes and gover- nance for decision-making based on emissions, besides stimulating partnerships for the development and implementation of solutions; and the lines of action, distributed on the fronts: OPERATIONAL DECISIONS Implement continuous improvement operational initiatives with a view to reducing emissions. ENERGY MATRIX Increase the share of renewable energy and low-carbon fuels in Braskem’s energy matrix. ENERGY EFFICIENCY Reduce GHG emissions through energy integration, electrification and optimization initiatives. TRANSFORMATIONAL PROJECT Implement key initiatives capable of significantly reducing GHG emissions from key issuer complexes. 61 Program initiatives per stage Industrial mindset focused on decarbonization Stage 0 Idea evaluation Stage 1 Identification – FEL Stage In our strategy to fight climate change, we es- tablish annual goals related to the reduction of emissions by industrial decarbonization projects, contemplated in the variable remuneration of the senior management. 69 12 20 4 23 7 3 Prioritized initiatives Stage 2 Planning/FID Stage 3 Execution Stage 4 Run-rate Stage 5 Complete Based on the MAC curve developed this year, we prioritized 69 initiative to reduce emissions among the lines of action, it being understood that 48% of them are already in progress or in run-rate. The en- ergy efficiency and electrification initiatives are the main fronts of the decarbonization portfolio, based on renewable energy and low-carbon fuels. In 2022 we also conducted the main global tech- nical congress, which was created to encourage preparation of the industrial public to the chal- lenges in climate change, focused on technical excellence. Its main purpose was to share the im- provements and best practices involving industrial decarbonization, and also to present the external benchmarks. Twenty-eight initiatives with poten- tial to reduce greenhouse gas emissions were pre- sented, and the majority of them originated from continued improvement projects. The industrial decarbonization capacity building track, which was implemented in 2021 and gathers the main con- cepts and initiatives of the program, trained more than 700 people since then. The target established for 2022, to map projects for the reduction of 300 thousand tCO₂ e, was fully achieved. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Increase in energy efficiency in the ABC petrochemical center Since 2019, we devote to a process of modernization of the electric system in the petrochemical center of the ABC region, in São Paulo. The project is carried out in partnership with Siemens, which is responsible for building and operating the high-efficiency co-generation system, and the joint in- vestment amounts to approximately R$600 million. The purpose is to update the technology of the system that serves this petrochemical center, which is made by substituting steam turbines by high-efficiency electric motors. The support originates from a new energy co-generation plant fed by residual gas with high hydrogen content from the petrochemical production process. In 2022, we started the co-generation phase, which generated a reduction by approximately 35 kt CO₂e/year due to the use of electricity and natural gas. For 2023, we foresee conclusion of the project and an estimate re- duction by approximately 100 kt CO₂e/year, in addition to estimated gains in energy efficiency (7.3%) and water consumption (11%). Electrification with renewable energy As part of our commitment to implementing of new tech- nologies and solutions that drive to the sustainable devel- opment, Braskem and Coolbrook plan to jointly implement a pilot project in which Braskem will evaluate the use of the disruptive technology, called RotoDynamic Reactor (RDR), on an industrial scale before implementing it into your crackers. Ultimately, the project involves the electrification of crackers through the substitution the use of thermal en- ergy derived from fossil fuel for electricity generated from renewable sources, which is one of the ways for Braskem to reach carbon neutrality by 2050. Consumption of power GRI 3-3 302, GRI 302-1, GRI 302-3, GRI 302-4 In 2022, even with lower absolute consumption, the indicator of total energy consumed was 4.7% higher if com- pared with the previous year (11.31 GJ/t), mainly due to a reduction in the production and consequent worsening of the energy efficiency of the plants. Irrespective of that, throughout the year, we continue investing in renew- able electric matrix and energy efficiency. Energy consumption (GJ) 188,064,527.12 186,884,884 188,512,343 187,376,560 Energy consumption intensity (GJ/t) 11.09 11.23 10.80 11.31 2019 2020 2021 2022 % of consumption by energy type 4.6 0.1 8.3 4.2 0.5 7.4 4.4 0.1 7.7 4.0 2.2 8.1 25.2 2019 25.7 2020 22.6 2021 21.5 2022 61.8 62.2 65.3 64.2 Residual fuels Natural gas Electricity Coal Other fuels Voqen: Vocation for energy In October 2022, we launched Voqen - new Braskem company, being one of its focuses the energy transition in our industry. Voqen already manages a portfolio of more than R$3 billion per year, will help us in the energy transition process and provide support to the entire chemical and petrochemical chain. We will offer our customers and partners all knowledge of the energy and gas markets we gath- ered over the years, as well as customize renewable energy solutions and new business models. LEARN MORE! About Voqen. 62 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Investments in renewable electric energy Biomass-based thermal energy In 2018, we initiated a sequence of long-term agreements for the purchase of renewable energy. Since then, we signed agreements with an average term of 20 years, for the supply of electric energy from wind and solar sources. In Brazil, our agreements represent 40% of the energy we purchase in the country and account more than 220 average megawatts. Also enable the construction of new ventures that contribute to the expansion of the electric system and the country's development, especially in the regions where we are located. % of renewable electricity purchased: 82%. MWm of long-term renewable electricity already contracted globally: +230 MW. 3.3 million tons of CO₂e in emissions avoided over the duration of the contracts. Veolia: in 2022, we executed an agreement to produce energy with the use of biomass-based steam. As from 2023, the operation will be carried out in Marechal Deodoro (AL), generating up to 900 thousand tons of steam/year, in 20 years, reducing approximately 150 thousand tons of CO₂e in the long term. Clean energy and RECs certificates in Germany and in the USA We evaluate the potential to increase our consumption of renewable energy globally. Therefore, in 2022 Braskem Europe commenced to implement its strategy of purchase of energy with renewable certificate for 100% of its consumption of electricity. As a result thereof, in that year the market-based emissions of scope 2 of Braskem of that region were 75% lower than the location-based emissions. Braskem in the United States, in turn, signed a renewable electric energy purchase agreement, for a term of ten years, for the plant in Neal (West Virginia), which becomes effective in 2025. It has also entered into clean energy agreements for the plant in Marcus Hook (Pennsylvania), until 2027. Finally, it has acquired Renewable Energy Certificates (RECs) for the Texas plants. Renewable energy in Braskem’s energy matrix Clean and/or renewable energy consumed (% of total energy consumed) Total clean and/or renewable energy purchased (% of total energy purchased) Renewable electricity purchased(1) (% of total electricity purchased) 2019 2020 2021 2022 6.4 4.8 5.4 6.9 2019 2020 2021 2022 12.7 11.7 13.1 17.4 2019 2020 2021 2022 2030 72 74 71 82 85 (1) The electricity supply at Braskem is acquired via specific renewable contracts, complemented by electricity from the grid. Thus, the percentage of renewable electricity purchased considers both forms of supply. In 2022, there was greater renewability of the Brazilian GRID, as explained in the GHG emissions volume indicator, scope 2. 63 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Carbon to chemical conversion We are investing in the development of carbon capture technologies for storage and use as raw materials for chemical production. Our Innovation team is working with a pipeline where 170 ideas have been identified, 15 of which have been developed, becoming research already at various stages of development. Among the projects are a partnership with Northwestern University in the development of a co- electrolysis technology, which simultaneously transforms CO2e captured in CO and ethylene into ethylene oxide. With the University of São Paulo and the Federal University of São Carlos (UFSCar), we worked on creating a new technology to convert CO2e into light olefins or linear alpha-olefins. Together, we are also developing an electrocatalytic system to convert CO2e and water into ethanol. With New Iridium, a startup from Colorado, United States, we are supporting the development of a photocatalytic system that uses light energy to promote the conversion reaction of CO₂2e into organic acids. In addition to the projects to convert CO₂e, we also have a partnership for the development of capture technologies with membrane in cooperation with Compact Membrane Systems (CMS). With respect to the project of University of Illinois, from Chicago, initiated in 2019, we have obtained positive results, with the conclusion of the development of the technology in laboratory, and we are evaluating the commencement of the pilot plant to continue the development of the technology in larger scale. Removal of biogenic carbon with inventory incorporated in the product From a global emission perspective, we understand that biopolymers are an important solution for the petrochemical industry towards carbon neutrality. In fact, the raw material used for the production thereof contains carbon of biogenic origin, for ex- ample, removed from the atmosphere during the plant photosynthesis process. Because they re- tain biogenic carbon molecules for dozens of years, biopolymers can be considered as long-term in- ventories of biogenic carbon. For that reason, we announced in 2021 the expansion of current green ethylene capacity at the Triunfo pet- rochemical complex in Rio Grande do Sul (Brazil) from 200 kt/year to 260 kt/year, with an estimated invest- ment of US$87 million, which is expected to start op- erating in the first half of 2023. As expected for 2022, we also continue to study the feasibility of expanding green ethylene production to Thailand, in partnership with SCG Chemicals – during 2023, we expect to reach project milestones such as investment approval. CLICK HERE Learn more about green polyethylene sales in Manufacturing Capital. In 2022, we formalized our partnership with Lummus for licensing technology to produce green ethylene. The partnership will accelerate the use of bioethanol for the production of chemicals and plastics. Bioproducts (Kt) 1,000 +21% (1) +30% 200 260 2010–2022 2023 (Commitment) 2030 (Commitment) (1) Considers the weighted annual growth rate in the period. Diversification into bioproducts The year 2022 also marked the launch of Sustainea, a joint ven- ture with Japan's Sojitz focused on the production and sale of monoethylene glycol (bioMEG) and monopropylene glycol (bioMPG) made from renewable raw materials. The raw material for PET, MEG has numerous appli- cations and is essential for industries such the textile and pack- aging industries, especially beverage bottles, but today it is still predominantly produced from fossil raw materials. By means of this joint venture, the business plan contemplates the implementation of three industrial plants, with start-up of the first unit in 2025. Sustainea will also establish a production chain to ensure renewable and competitive raw material supply, as well as a logistics operation that enables the smallest pos- sible carbon footprint. The expectation is that once the tech- nology is approved, the plants will have a combined production capacity of up to 700,000 tons of bioMEG per year. LEARN MORE! About Sustainea. 64 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Climate adaptation GRI 201-2 Climate adaptation and water security One of the main physical climate risks to which we are exposed is water scarcity; therefore, water risk management is completely interconnected with climate risk management. The main actions for mitigating water risk is the search for new safe sources of water catchment, thus avoiding potential conflicts with the community and increasing water security. One example is Aquapolo, which serves part of the operations in the Southeast region of Brazil, and is one of the main initiatives we have implemented for water risk mitigation, the largest reuse plant in operation in Latin America with 1,000 liters/s capacity. In operation since 2012, the project is the result of a partnership between sanitation company SABESP, at the time with the private operator BRK Ambiental and Braskem in a 41-year contract to supply the company's plants in the ABC petrochemical complex. Nowadays, the Aquapolo is under GS Inima management and supplies almost 100% of the water consumed by the units of ABC Paulista, which contributes to minimizing the risks of scarcity in the region. For the selection of new safe water sources, using as reference the requirements of the CEO Water Mandate and our sustainable development strategy, with technical support from a specialized con- sulting firm, we developed a tool that considers technical, social, environmental, economic, and risk aspects in the decision-making process for new water sources; this way, these new water withdrawal options will be more aligned with our strategy, underpinning the achievement of the 100% water se- curity index by 2030. We concluded the climate risk review, with time horizons of 2030 and 2050, in which we identified and evaluated the physical and transition risks, as well as the climate-related opportunities that could impact the company under different climate scenarios. The study also included mapping the existing control measures for the identified risks and up- dating the climate change adaptation plan. The study included scenarios limiting the average temperature increase to 2°C by the end of the century, providing a wide diversity of plausible outcomes and meeting the best practices for climate risk studies estab- lished by the Task Force on Climate-related Financial Disclosures (TCFD). Its scope reflected all operations in the countries where the company operates, with potential physical risks raised associated with ten types of climate threats that vary according to the region of the analyzed units in Brazil, Mexico, the United States, and Germany. After the climate risk classification process, the highest risks were identified, totaling 22 in the time horizon of 2030, and thus action plans were defined to eliminate or reduce these risks. Among the industrial units, those located in Brazil presented the highest incidence, where extreme climate events, such as severe droughts, heavy rains and floods, can occur. For each of the risks, clas- sified as high, we prepared action plans with adaptation measures. As for the opportunities, identified and classified as priorities, we selected those with the greatest potential positive impact on the business and defined actions to enhance them. The incorporation of climate risks to the corporate risk management process, aligned with Braskem's strategy, allows for the anticipation of due adaptation measures, which can avoid or control certain risks, and the exploitation of the opportu- nities identified in the study. 65 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Water management GRI 3-3 303, GRI 303-1, GRI 303-2, GRI 303-4, GRI 303-5 | SASB RT-CH-140a.3 Water is a fundamental resource for petrochemical pro- duction, used in cooling processes and steam genera- tion, as well as incorporated into certain products. Water scarcity – magnified by climate change – can negatively impact our business and the continuity of operations. Therefore, based on the study of climate risks and on the studies of hydrographic basin risks in the regions of our operations, we defined and have been imple- menting action plans for water safety for all industrial units, in alignment with the climate change adapta- tion plan, especially for those with the highest risk of droughts and water unavailability: the northeastern and southeastern regions of Brazil. Among our goals for this topic is the use in our opera- tions of 100% water from safe sources by 2030. In 2022, the global water security index was 65.3%, an decrease of 4.1% compared to 2021. The eco-efficiency indicator of Braskem’s water consumption in 2022 was 4.30 m³/t, al- most 3% higher than the previous year’s result. We concluded the technical reassessment of indica- tors and concepts related to water, based on the most recent updates of recognized international references, such as WRI, GRI, CDP, CEO Mandate, among others. One of the main review points is the standardization of the concept of safe water, which has already been updated to calculate the 2022 water security indicator. This review will allow us to follow a path in line with our commitment for 2030. Another important change refers to the reassess- mento of water reuse indicator, which is part of the water security index, what resulted in adjustments to exclude process improvements inherent to the tech- nologies used in the plants. This adjustment impacted the water security indicator in 2021 and 2022. Rio de Janeiro: we signed a memorandum of understanding with the concessionaire Águas do Rio (Aegea Group) for a project to supply the company's industrial plants in Duque de Caxias with reused water. The project is aligned with the climate adaptation objectives, with a focus on achieving 100% water security for its industrial units by the year 2030. Alagoas: we are evaluating alternatives for the reuse and desalination of seawater for the two industrial units. To support the project selection process, we developed a methodology with an external consulting firm, with criteria that will be considered to define the winning proposal. This process should be completed by 2023. The effort for an efficient management of water re- sources guaranteed our presence, for the sixth year in a row, in the global A List of water use of the Carbon Disclosure Program (CDP). The non-profit environmental organization selects the best publicly traded companies in the world in relation to sustainability aspects. We are also part, since 2019, of the CEO Water Mandate, a UN Global Compact platform that brings together more than 150 companies committed to advancing the management of water resources. After joining the Race to Resilience initiatives of the United Nations Framework Convention on Climate Change (UNFCCC) and Water led by CEO Water Resilience Coalition, a coalition Mandate, which aims to preserve the world's freshwater resources through collective actions in water-scarce basins, we are evaluating existing collective action ini- tiatives in the southeast and northeast regions of Brazil, regions of potential water stress, to select the one most adherent to Braskem's strategy and with potential posi- tive socio-environmental impact. Water safety index (%) Water consumption (m³/t) 64.5 65.3 4.31 4.31 4.30 4.19 2021 2022 2019 2020 2021 2022 GRI 303-5 Water reuse index(1) (%) Total water consumption(2) (m³) 17.0 72,389,471 71,216,334 13.8 70,745,786 69,341,060 2021 2022 2019 2020 2021 2022 (1) The methodology for calculating the water reuse index has been changed to exclude process improvements that are inherent to the technology used in plants. This change also modified the water safety index values as this indicator uses the reuse index as one of the calculation elements. (2) Of all areas and areas with water stress (ML). Distribution of water tanks Developed in partnership with Fortlev, a national leader in water storage solutions, the project aims to produce and distribute (with the help of the Friends of Good Institution) water tanks in 80 villages in the states of Alagoas, Pernambuco and Ceará. The action benefited around 10,000 people and Braskem was responsible for donating Polyethylene resin to produce more than 2,000 water tanks. 66 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Disposal of post-consumer plastic waste GRI 3-3 301 We are committed to expanding the commercialization of resins with recycled content to 300,000 tons in 2025 and 1 million tons by 2030, as well as recovering 1.5 million tons of plastic waste by this same year. Thus, increasingly committed to strengthening and achieving the circular economy, we launched Wenew, the company’s new circularity ecosystem which includes circular products (resins and chemicals), environmental education and proper disposal ini- tiatives, technologies and circular design. We denominate the last three initiatives as Wemove, a movement that aims to educate and engage people in society and raise awareness about ways to achieve a more circular plastics supply chain. Waste Recycling Recovery and reuse Circular product portfolio (resins and chemicals). Development of technologies with high potential for the recovery of plastic waste. Initiatives in environmental education and consumer engagement in projects that address conscious consumption and proper disposal. Circular design, a tool that contributes to rethinking products in a comprehensive way. Start Product design Closing the plastics loop Manufacturing Capacity and efficiency Collection Plastic chain engagement Use Conscious consumption CLICK HERE To learn more about Wenew. 67 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryNatural CapitalHighlights from 2022Circular product portfolio GRI 3-3 301 Our global portfolio comprises 40 grades of post-consumer recycled content resins and 42 grades are in de- velopment. We have plastic resins produced from mechanical recycling, and chemicals such as solvents and specialties, repurposed from the company’s traditional production processes. Braskem’s circular products are the result of plastic waste recycling and recovery processes and, for this, we invest in innovative waste recycling and recovery technologies. Mechanical recycling Process of milling post-consumer plastic into smaller pieces that, after going through the extrusion pro- cess, become recycled content resins for the most diverse applications. Chemical recycling Process of breaking down post-consumer plastic mol- ecules, with alteration of their physicochemical proper- ties, for the generation of circular raw materials used in the manufacture of new chemicals or resins, with the same quality as conventional ones and for the most di- verse applications. Braskem is investing in chemical re- cycling technology to soon make it a reality. In 2022, Braskem in the United States announced a novelty that contrib- utes to the company’s commitments to the circular economy. This is the expansion of the polymer portfolio, which now includes two new poly- propylene (PP) grades with post-consumer recycled (PCR) content. The solutions are used in a wide range of US Food and Drug Administration (FDA) food contact applications, including consumer packaging, caps, and household utilities. With the launch, we want to help our clients meet their recycled content goals in the FDA food contact market, which currently has limited PCR solutions. Plastic waste New products and applications Washing Plastic waste New products and applications Pyrolysis and other processes Mechanical recycling Chemical recycling In Brazil and Mexico, we completed the lifecycle analysis study of recycled content resins, which showed up to a 48% reduction in carbon footprint over conventional resin. High-quality recycled content resin Extrusion Chemical reformulation Chemical and resin products Cracker Waste recovery Process of recovery of products derived from the manufacture of other Braskem solutions, generating maximum use of raw materials and reduction of waste. 68 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Braskem Idesa and Alcamare The partnership between Braskem Idesa and Alcamare, Mexico’s largest recycler, will help drive the relevance of PE and PP recycling in the country. Through a long-term contract, we will develop and trade food-quality recycled material, i.e., food contact-capable recycled products. Extending our recycling supply chain GRI 3-3 301 In 2022, we made significant strides to achieve our goal of expanding our portfolio to include 300,000 tons of thermoplastic resins and recycled content chemicals by 2025. One of them was the signing of a contract for acquisition of shares and subscription of new shares issued by Wise Plásticos S.A., a company in the mechanical recycling sector focused on poly- propylene (PP) and polyethylene (PE) resins. As of the present, Braskem owns 61.1% of Wise's share capital. A significant part of the investment – estimated at R$121 million – will be allocated to dou- bling current production capacity to around 50,000 tons of recycled products by 2026. The transaction was approved by CADE on november 2022, com- pleted on february 2023, and and is connected to Braskem’s circular economy strategy, creating even more sustainable and innovative solutions based on the improvement of opportunities in the plastics production chain, which includes the recycling chal- lenge in Brazil. Also in 2022 we inaugurated, in partnership with Valoren, the first mechanical recycling plant in Brazil. With an investment of approximately R$67 million, the unit is expected to transform 250 mil- lion post-consumer packaging – made of poly- ethylene and polypropylene – into 14,000 tons of high-quality recycled content resin annually. After the process, the resins will serve as raw materials for the transformation industry. In addition, we announced the formation of a joint venture with ER Plastics in the Netherlands. The company, which will be controlled by Braskem, is re- sponsible for creating an innovative technology that converts low-quality plastic waste into final prod- ucts. With this, we will expand our performance in the supply chain, based on a new business model, and be able to expand the use of this technology to other regions. The ER Plastics has a nominal mechanical recycling ca- pacity of 23,000 tons per year, that transforms mixed plastic waste into compression-molded parts (plates for use in construction and pallets). For Braskem, the operation is aligned with the commitment of achieving 300,000 tons of sales of products with recycled con- tent by 2025. Production capacity – 2025e (kt) Mechanical recycling Chemical recycling 25 23 14 6 25 93 Valoren Valoren ER Plastics Wise Valoren Expansion Total 69 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Technology development GRI 3-3 301 In search of new technologies with high potential for plastic waste recovery, we have invested in several partnerships to increase the quality of post-consumer recycled content resins and expand their application possibilities. Among these projects is the partnership with the Institute for Sustainable Process Technology in developing a technology for separation and recycling of mixed plastic waste sent for pyrolysis. With an investment of €2 million, the project will enable the recovery of plastics that will become raw materials for resin production. Together with Senai, we are working on chemical recycling research into solutions for use of flexible post-consumer plastic. The goal of this partnership – which has an investment of R$2.7 million – is the development of catalysts to improve the quality of the products generated in the plastic chemical recycling process. Another disruptive project with Valoren also focus on chemical recycling that will transform, by means of the pyrolysis process, plastic waste into certified circular raw material, which will be used in the manufacture of resins or chemical inputs. The project, which involves a joint disbursement of R$44 million, should start operating in the first quarter of 2023 and will have the capacity to produce six thousand tons of circular products per year. We also made a capital investment to acquire the minority stake in Nexus Circular, a company that operates in chemical recycling. The proprietary technology project converts films destined for landfill and other hard-to-recycle plastics into high-quality raw materials. The 10-year agreement announced by the two companies considers the supply of raw materials for the production of circular PP resins certified by Braskem. Environmental education and consumer engagement In 2022, we accounted for 33.5 thousand tons of re- covered plastic, an increase of 156% over the last year, due to the consolidation and increase of collective actions and consumer engagement. This result con- siders the volume of plastic waste recovered through sales of post-consumer resins (PCR), which totaled 28.3 thousand tons, an increase of 115% compared to the previous year. Among these actions are cashback system initiatives. In 2022, we signed and operated with three compa- nies in this segment, in which people exchange their sanitized post-consumption packaging for credits available on a card, provided directly at the collection points (fixed and mobile). The units accept materials made of plastic, glass, paper, cardboard, aluminum, among others. With the card it is possible to make purchases in local establishments, such as markets, pharmacies, and bakeries. Triciclo, Coletando and Molecoola helped install 34 new voluntary delivery points in the states of São Paulo, Rio de Janeiro and Bahia. In addition, we made it possible to include PE and PP collection at more than 200 points that were already in operation. With Coletando, the action (also cashback) is carried out in 17 municipalities of four states (SP, RJ, MG and BA). The waste collected goes to one of the 25 partner cooperatives that allocate the materials for recycling. In the case of plastic items (polyethylene and polypropylene), Braskem is responsible for recycling, through the mechanical recycling unit operated by Valoren. The materials return to the chain as post- consumer recycled resin, which can be used for the production of new products, thus closing the cycle of the circular economy. Volume of recycled waste recovered and used in Braskem's production (t) GRI 301-2 GRI 301-2 Brazil United States Europe Mexico Total 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2020 2021 2022 2,341 7,608 1,598 2,947 207 2 82 944 14,270 8,632 2,651 2,304 2,785 28,337 5,091 13,119 70 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Zero waste in the park In 2022, we joined forces with Ibirapuera with the Zero Waste Braskem project to contribute to the goal of making it the most sustainable park in Latin America, making it zero landfill by 2030. The goal is to make the more than 18 million visitors aware of how to dispose of waste correctly, improve waste management in the park, and optimize recycling by means of signalized waste garbage cans and exchanging waste for discounts on products sold in the park. We are also sponsors of sustainability actions at the São Paulo Museum of Art (Masp). In this partnership we encourage the museum to make improvements in its waste management. In the first six months of the partnership more than 10 tons of recyclable material was removed from the museum, which was sent to a cooperative for recycling. Recycling show SER+ Program In 2022, we will take our commitment to sustainable development and circular economy to three major events: Rock In Rio, Lollapalooza and Popload Festival. These actions consisted of plastic waste collection stations where participants could exchange recyclable items for various gifts. Popload Festival: +27,000 plastic items collected. Lollapalooza Brazil: +129,000 plastic items collected. Rock in Rio: +872,000 plastic items collected. The program aims to foster the development of the re- cycling productive chain of solid urban waste in recycling cooperatives, through training, mentoring, and invest- ment in equipment, PPE, infrastructure improvement works, and services in recycling cooperatives. In 2022, we recovered 4.7 thousand tons through the program, which expanded its activities to the city of Duque de Caxias (RJ), benefiting 30 cooperatives and more than 900 cooperative members in distinct stages of maturity. In the year, the program recovered about 4.7 thousand tons of plastic waste. Partnerships to prevent plastic waste disposal GRI 3-3 301 Over the years, Braskem has joined various initiatives to understand, prevent and assist in the management of plastic waste. Blue Keepers: coordinated by the Global Compact Brazil, the project was developed to prevent plastic waste from escaping into rivers and oceans in a systemic and lasting way. We are one of the sponsors of the action, which focuses on waste management to generate impact in the short, medium, and long term through the fronts of diagnosis, so- lutions, pilot projects and public management. In 2022, we presented the project's diagnosis at an event of the United Nations Educational, Scientific, and Cultural Organization (UNESCO), on Dialogues of Ocean Culture; we conducted research, with the National Confederation of Municipalities, on eco-barriers and eco-boats; and we have evolved with the collection of samples, through the Oceanography Institute of the University of São Paulo (USP), to build the first national inventory of types of waste that go to sea, considering priority cities. Alliance to End Plastic Waste (AEPW): an industry coalition that invests in projects and technologies to end plastic waste disposal in the environment, especially in the oceans. We make commitments on two fronts: Solution Accelerator Fund (investment of US$7.5 million by 2023 in annual membership fees) and Member Directed Commitment (investment of US$15 million by 2023 – alliance members commit to investing directly in their own activities to deal with plastic waste, a goal Braskem has already met). In 2022, more than 30,000 tons of plastics were recovered in the initiative’s actions. 71 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Circular design GRI 3-3 301 In 2022, we inaugurated Cazoolo, Brazil’s first packaging development center for the circular economy. The space, which is located in São Paulo (SP), is the result of an investment of R$20 million and functions as a packaging innovation hub. Its main goal is to design and develop improvements for the entire packaging journey – from conception to post-consumer. There we want to bring together all the links in the production chain, such as clients, brand owners, designers, startups and universities, so that they can create and co-create projects that aim at the complete circularity of their products, reducing environmental impacts and le- veraging innovations with technology. All projects developed in Cazoolo follow the concepts of Design for Environment (DfE)(1) and Life Cycle Analysis (LCA).(2) The initiative has already started to reap good results, with packaging solutions developed and available for the market. This is the case of the Stand Up Pouch, a mono-material developed in partnership with Antilhas; the mono-material tube created in conjunction with C-Pack; and the mono-material solution in BOPP. We have also held the first Packaging Day with the client Vigor, with the goal of redesigning soft cheese packaging. (1) Design approach to reduce the overall health and environmental impact of a product, process or service. (2) Technique for evaluating and quantifying potential environmental impacts associated with a product or process. The Cazoolo was recognized as an Initiative of the Year 2022 in the Design ESG/Circular Economy category of the Brazil Design Awards and awarded in the Design category of the Design for a Better World award, organized by Centro Brasil Design. Actions to increase plastic recovery As a leader in polypropylene production in North America, we are com- mitted to collaborating and strengthening recycling and circularity. It was with this goal that in 2020 we joined the Polypropylene Recycling Coalition, an initiative of The Recycling Partnership. In 2022, the How2Recycle North American packaging recyclability la- beling program upgraded the eligibility of rigid polypropylene (PP) tubs, bottles, jugs, and jars from "check locally" to "widely recyclable" in the United States. This was achieved by several years of improving polypro- pylene sortation capabilities at material recovery facilities through a structured granting program, administered by TRP. As a result, our cli- ents can remain confident in communicating PP recyclability on their products and packages. Also in 2022, we rejoined the American Chemistry Council's Plastics Division to work across the industry on improving the recovery of plastic packaging. We also continued our participation as members and part of the Executive Advisory Board of Cyclyx, an innovative consortium working to increase plastic recovery rates and supply feedstock to recy- cling projects. 72 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Operational eco-efficiency Within our sustainable development strategy, we invest in technologies and projects that seek to make our operations more eco-efficient by im- proving the way we use and leverage natural re- sources to reduce any kind of negative impact on the environment. Waste and effluent management GRI 3-3 306, GRI 306-1 At Braskem, we have a Health, Safety, Environment, Quality and Productivity Policy. One of its parameters is the monitoring of hazardous and non-hazardous waste. This is done based on local regulations and site-specific quality procedures. Waste management efficiency, designed to increase company eco-efficiency, reduce waste treatment costs and also prevent environmental liabilities, fol- lows an order of priority: 1. Non-generation 2. Reduction 3. Reuse 4. Waste treatment 5. Final destination In 2022, the intensity of waste generation was 3.04 kg/t, an increase of 25% compared to 2021, due to lower production in the year, accounting for waste from environmental liabilities and the maintenance stoppage in Rio Grande do Sul. Total effluent generation (m³) Effluent generation (m³/t) Waste generation GRI 306-3 Total waste generation (kg) 50,586,532 37,002,579 35,892,667 41,027,838 2019 2020 2021 2022 GRI 303-4 21,922,812 19,672,409 20,479,434 19,966,683 2019 2020 2021 2022 1.31 1.22 1.21 1.21 2019 2020 2021 2022 Indicator – waste generation (kg/t) 2.20 2.23 3.04 2.43 Significant atmospheric emissions(1) (kg/year) GRI 305-7 | SASB RT-CH-120A.1. The improvement in the campaign to monitor emission sources and the standardization of atmospheric emission inventories led to a reduction in NOx, SOx and PM emissions, mainly at the crackers in Brazil and at Braskem Idesa. Due to the maintenance stoppage in Rio Grande do Sul, Brazil, there was a reduction in Hazardous Air Pollutants (HAP), due to the cleaning of equipment, improving systems' burning and cleaning efficiency. For the other pollutants, the pattern was maintained in the volume of emissions, without significant impacts. 2019 2020 2021 2022 10,013,984 The management of effluents is based on stan- dards defined by local legislation and on internal procedures in all our units. In 2022, the intensity of generation of liquid effluents was 1.21 m³/t, in line with the previous year. During the year we advanced with projects to optimize cooling water consumption, mitigating the negative effects of scheduled and unscheduled shutdowns, as well as equipment cleaning. 6,964,565 6,149,789 5,372,773 9,542,710 7,008,220 6,350,894 5,264,643 953,054 458,848 865,962 424,979 2021 2022 NOx SOx COVs HAP(2) MP Other emissions(3) (1) The methodologies used are recommended by local environmental agencies. Where measurement is not available, estimates (emission factors) based on recognized methods, e.g., US EPA AP-42, are used. (2) Including toxic air pollutants and hazardous air pollutants (HAP). (3) Including total hydrocarbons and carbon monoxides. 73 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Manufactured Capital Our 40 manufacturing plants across four countries have a productive capacity of more than 16 million tons/year of plastics and chemicals marketed to clients in more than 70 countries. We are aware that in order to evolve our business in a lasting and sustainable way, we need relevant topics such as the circular economy, recycling, and combating climate change - topics that are already present in our day-to-day activities and integrated into our business strategy. Elimination of Plastic Waste Dimension 3 CLICK HERE Combating Climate Change Dimension 4 CLICK HERE For more details on advances in the dimension. CLICK HERE To learn about our positioning in circular economy. 74 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryManufactured CapitalHighlights from 2022Manufactured Capital in numbers R$37.8 billion value of fixed assets (+1.4% vs. 2021). 21.3 million tons productive capacity (same as 2021). Unit utilization rate: 78% Brazil (-3 pp vs. 2021). 73% Mexico (+7 pp vs. 2021). 54.1 thousand tons sales of recycled products (+144% vs. 2021). 80% United States and Europe (-7 pp vs. 2021). Performance, efficiency and productivity The sales of the main chemicals were lower (-6%) mainly due to the lower availability of products for sales given the lower utilization rate of the petro- chemical plants in the year. Exports also decreased (-27%) due to lower demand in the foreign market. In PVC, the average utilization rate of the Alagoas and Bahia plants was 66%, 1 pp higher than 2021. Sales to- taled 498 tons, 1% higher than the previous year. United States and Europe The utilization rate of US and European plants was 80%, down 5 pp from 2021 due mainly to lower de- mand in the regions and short unscheduled stoppages in the period. Sales volume in the United States also declined by -9%, an amount which was also associated with lower de- mand in the period associated with lower consumption, high inventory levels in the transformation chain, and the expectation of converters to lower prices in subse- quent periods and high levels of PP imports into Europe. In addition to setting a high standard for quality, safety, efficiency, productivity and competitiveness, our processes and structures are critical to the evo- lution of our sustainable development agenda. We have a strong commitment to the circular economy and carbon neutrality and want to strengthen these topics not only in the Braskem portfolio, but also throughout the production chain. In 2022, our fixed assets totaled R$37.8 billion and we had a productive capacity of 21.3 million tons of chemicals and plastic resins. In the recycled con- tent resins segment, production capacity reached 62,000 tons/year. Brazil The average utilization rate of the petrochemical plants in Brazil decreased 3 pp compared to 2021, reaching 78%, due to scheduled maintenance stop- pages at the Rio Grande do Sul petrochemical plant and PVC plant in Alagoas, the unavailability of raw materials at the Rio de Janeiro and ABC petrochem- ical plants, in addition to the lower demand for resins and a fall in spreads in the international market. On the other hand, the volume of resin sales in the Brazilian market was in line with the previous year’s result due to the greater market share of resins and maintenance of local PE demand, which offset the decline in total demand for resins in the country. Resin exports in 2022 also remained in line with 2021. 75 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Mexico Transform for Value The average utilization rate of the PE plants increased 7 pp compared to 2021 due to the increased supply of ethane through the Fast Track solu- tion. Sales, in turn, increased 20% due to increased availability of product for sale, given the higher utilization rate in the period, and higher demand for PE in the region. Fast Track operations supplemented raw material supply with an average of 18,500 barrels per day of ethane imported from the United States, representing a 20.4% increase compared to 2021 and 74% utilization rate of this solution. Additionally, in August the Fast Track solution recorded a record supply, operating at an average of 27,200 barrels per day, due to investments that allowed an increase in the volume of imported ethane. Puerto Mexico Chemical Terminal GRI 2-6 Braskem Idesa (BI) announced an agreement with the com- pany Advario for the construction and operation of Puerto Mexico Chemical Terminal (TQPM), which will serve to import ethane in Veracruz. The transaction, which was completed in March 2023, with an estimated investment of US$400 mil- lion, will have a 50% equity stake in TQPM for each company. Construction began in July 2022 and has reached a physical progress to December of 26%. Operations are expected to start in the second half of 2024. The purpose of the terminal is to complement Mexico's hydrocarbon supply and provide additional ethane for Braskem Idesa to operate at full capacity, increasing gas availability and the competitiveness of the en- tire Mexican petrochemical and plastics industry. Within the processes that drive our strategy and drive value for the company, one highlight is the Transform for Value global efficiency program. Its role is to coordinate and accelerate improvement initiatives in different areas, including competitiveness and productivity and energy. Thus we can prioritize applications aligned to our strategy by selecting those that adhere most to our business and sustainability commitments. Environmental Social Economy and governance Hire to leave Local labor Investment to shutdown Idea to market launch Product development – environmental Safe use of products Forecast to stock Requisition to pay Suppliers – environmental management Order to cash Record to report Economic performance Enablers Environmental Social Governance Non-renewable resources Water Climate change and energy Air Waste Biodiversity Post-consumption Community and social investments Free competition Health and safety Corruption Public policies Transparency and integrity Through Transform for Value we redesign our process structure, generating value for the company through process optimization (whether related to physical or intellectual assets), always focusing on the environmental, social and governance pillars for decision making. 76 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Optimization and value capture In 2022, the cumulative capture of these initiatives totaled about US$283 million. The capture rate represents, mostly, a direct impact on the com- pany’s EBITDA, which can occur in four ways: net revenue increase, vari- able cost reduction, fixed cost reduction or DVGA reduction. Importantly, approximately 1/3 of the value capture pace of US$353 mil- lion/year can be associated with Digital Transformation initiatives, which make significant use of digital technologies in their scopes, such as auto- mation and instrumentation, new software and systems, advanced ana- lytics, machine learning, and cloud services, among others. In addition, other initiatives in more preliminary phases, such as plan- ning or execution, under management of the areas that compose the program’s scope of operation have added to the pipeline’s potential ap- proximately US$387 million/year to be captured in the coming years. Products and sales Braskem has remained focused on developing var- ious projects in its main growth avenues, which are concentrated in existing business with a focus on productivity and competitiveness, of renewables and recycling. In the Brazilian market, demand for PE, PP and PVC fell 3% compared to 2021 mainly influenced by the decline in consumption, due to the rising interest rates. In the United States, PP demand fell 6% compared to 2021, affected by high inventory levels in the transformation chain and fear of an economic re- cession. The European market was also down 8% year-on-year, explained by lower consumer con- fidence due to the region’s poor economic per- formance and the impacts of high inventories on the transformation chain. In Mexico, PE demand increased from 2021 (+8%), explained by the con- tinued recovery of the Mexican economy over 2022, especially in industrial sectors. Sales of recycled products GRI 301-3 In 2022, our sales of recycled content products reached 54,000 tons, growth of 144% over 2021. This demonstrates the company’s commitment to con- tinue expanding its portfolio of products with recy- cled content, encouraging the recycling chain in the regions where it operates and developing the recy- cled market. Product stewardship We perform strategic management of our products to ensure the health, safety, and mitigation of environmental impacts during their life cycles, delivering sustainability and safety to customers and society in our portfolio. We incorporate analyses of these aspects even in the development phase. The management of the topic is performed with the following objectives: to achieve regulatory compliance and product safety, to understand impacts and risks associated with portfolio growth, to strategically position the company with policy makers, to develop internal culture, and to enhance systems and tools for proper product analysis. 77 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Sales of products with recycled content (ton) Green PE Sales Sustainable Production Certifications 2022 (A) 2021 (B) Var. (A)/(B) Recycled products 54,149 22,181 Chemicals(1) 11,772 1,975 Resins with Recycled Content (Wenew) 42,377 20,206 Brazil 19,713 10,138 United States and Europe 16,977 Mexico 5,687 3,405 6,663 (1) Sales of circular chemicals considers only Brazil. 144% 496% 110% 94% 399% -15% LEARN MORE! About our products with recycled content strategy. PVC with rice husk Our vinyl business has been working on Resysta, a technology that unites PVC with rice husk. In partnership with the German company, the project uses rice husk – a food by-product that generates a lot of carbon dioxide gas – with PVC to produce a wood substitute. The result is a resistant material that can be used in several applications, especially in the furniture industry. In 2022 we reached the mark of 178,538 tons sold, with a green ethylene utilization rate of 95%. Our commitment is to increase the production capacity of bioproducts to 1 million tons by 2030. Green PE sales (kton) Sales of ETBE (kton) (ethyl terbulytic ether) Capacity utilization rate green ethylene (%) 2019 2020 2021 2022 161 145 75 168 87 135 165 101 220 179 95 266 Net revenue (Green PE + ETBE) (US$ million) 2019 2020 2021 2022 401 381 630 848 CLICK HERE To find more about our biobased products strategy. We were the first Brazilian company to receive the International Sustainability and Carbon Certification for the use of alternative raw materials (ISCC Plus). This means that industrial units in the south and southeast regions can test and produce new poly- mers derived from sustainable, credited and recog- nized sources. Germany’s production plants and the Netherlands office also received this certification and in 2022 it was the time of the US facilities, where we have five certified plants. We also received Bonsucro certification which af- firms the production and processing of raw mate- rials in a socially and environmentally responsible manner at our industrial complex in Triunfo (RS). We became members of the Roundtable on Sustainable Biomaterials (RSB), an entity that promotes the de- velopment of renewable and circular fuels and ma- terials, with a special focus on the aviation sector. Through this partnership, we can help develop and discuss pathways to this market alongside airlines, aircraft manufacturers and other organizations. In addition, based on our initiatives with Ocean Clean Sweep, we have already earned the OCS Blue seal, awarded by Plastivida, licensor of Operation Clean Sweep® in Brazil. In 2022, we held the Good Practices Sharing Forum related to the OCS/Pellet Zero Program; 85 logistics and industrial leaders from all over Brazil attended. Our units in Mexico and in the United States are also certified by OCS. 78 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Intellectual Capital We believe investing in advancing technology will increasingly be the central path in the pursuit of a more sustainable future. We see in- novation as a strategic pillar, being present in all our investment deci- sions to enable the transition process to the carbon neutral circular economy, based on the development of increasingly cleaner solutions. To measure the results on this front, we implemented an index two years ago that evaluates the sustainability of our projects in the fields of innovation and technology. Our goal is to have an index greater than 90% by 2030. Sustainable Innovation Dimension 7 CLICK HERE For more details on advances in the Sustainable Innovation dimension. 79 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalAbout the ReportSASB content summaryGRI content summaryIntellectual CapitalHighlights from 2022Intellectual Capital in numbers 360 members in I&T (+20% vs. 2021). 14 I&T facilities (+8% vs. 2021). R$514 million in spending and investment in innovation and technology (+70% vs. 2021). 85% in the Sustainability Index of I&T projects (+4 pp vs. 2021). 16% of sales with products launched in the last five years (+2 pp vs. 2021). more than R$500 million in value captured through digital technologies (+46% vs. 2021). 20 accelerated startups at Braskem Labs. Sustainable innovation At Braskem, innovation is a fundamental pillar to evolve with our long-term commitments. Our transfor- mation through innovation began with the implementation of the Sustainability Index for all innovation projects and the creation of platforms that focus on circular and low-carbon solutions: performance ma- terials, transformation of biomass into chemicals, recycling, next generation process, and conversion of CO₂e into chemicals. The innovation platforms have established themselves and started to contribute with opportunities to de- velop production processes and new molecules with reduced carbon emissions, mitigation, and reduction of safety risk regarding the use of chemicals and new raw materials with renewable or circular basis, strength- ening Braskem's portfolio of innovation and technology projects. Sustainability Index 181,005,336.08 Since 2020, the Sustainability Index has integrated all Braskem’s innovation and technology projects, thus ensuring the alignment of each project with our sustainable development strategy. All initiatives undergo an assessment in the planning phase of aspects related to sustainability and the type of im- pact (positive, negative or neutral). At the end, they receive an average grade. We ended 2022 with 179 projects in innovation and technology, with 131 assessed against the Sustainability Index and 111 with positive impact. This represents an 85% Sustainability Index. The posi- tive impacts of these initiatives are related to: water and/or energy savings, chemical safety (process/ product), greenhouse gas emissions and circularity. In the year, we also developed a method- ology to map the sustainable impact of solu- tions (Sustainable Solutions Mapping – SSM), i.e., the combined impact of the product in ap- plication, impact of product production up to Braskem’s gate, and the impact of product use after Braskem’s gate until end-of-life. Braskem’s SSM methodology is based on four benchmarks: (i) Sustainable Portfolio Management Guide of the World Business Council for Sustainable Development; (ii) Safe and Sustainable by Design Chemicals & Materials from the European Union, (iii) Sustainable Portfolio Management from Solvay; and (iv) Sustainable Solution Steering from BASF. Sustainable Solution Mapping di- rects us to a product portfolio that integrates sustain- ability and business growth, signaling product challenges and opportunities, and making sustainability a driver of innovation and growth. Investments in 2022 (in reais) Region Operating Expenses Investments Total Brazil 181,005,336.08 117,261,952.99 298,267,289.07 Europe 10,243,054.31 3,200,869.86 13,443,24.17 United States 136,090,442.80 66,450,290.74 202,540,733.54 Total 327,338,833.19 186,913,113.59 514,251,946.78 80 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Throughout 2022, investments in innovation and technology (I&T), including operating expenses and fixed assets, totaled R$514 million, up 69.8% compared to 2021. Of the total fixed expenses, 85% were dedicated to innovation for sustainability and 21.4% obtained in tax benefits for innovation. Innovation framework Braskem’s research and innovation area has team members and centers in various parts of the world: 24 new patent applications and 94 extensions. We currently have 1,047 active documents, of which 454 are patents granted. 2 Technology and Innovation Centers (CTI): Triunfo (RS, Brazil) and Pittsburgh (PA, United States). 2 Polymer-focused Technical Nuclei: Wesseling (Germany) and Coatzacoalcos (Mexico). 7 pilot plants. 1 Biotechnology Development Laboratory in Campinas (SP). 1 Renewable Innovation Center in Lexington (MA, United States) under construction. 1 Process Technology Development Center in Mauá (SP). New innovation center in Boston Accelerate the innovation of renewable chemicals and sustainable materials. This is the goal of the new renewable innovation center that Braskem will build in the US city of Lexington, in the Boston met- ropolitan area. With more than 3,250 square meters and an invest- ment of approximately US$4.4 million, the site will expand our opportunities and capabilities in bio- technology, catalysis, process engineering and open innovation. One of the main focuses will be early- stage science and engineering related to converting biomass-based raw materials (sugars, cellulose, vegetable oils and lignin) into sustainable chemicals and materials. The facility is expected to be ready in the second half of 2023 after obtaining final valida- tion and commissioning. Supporting innovation In 2022, our technology centers supported many of our clients’ initiatives: 334 clients in Brazil (23,000 analyses) 77 clients in the United States (10,480 analyses) 51 clients in Europe (8,400 analyses) Innovation and digital technologies We have joined efforts between inno- vation and digital technologies to bring innovative research and development methodologies to our platforms. In 2022, we combine data science and robotics for product innovation, accelerating the experimental stages of development projects. Tests performed on material samples, previously performed only in laboratories, are now performed in a vir- tual environment, allowing solutions to be available to our customers in less time. 81 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Digital transformation We have experienced an era of accelerated change driven by new dig- ital technologies, appropriately called the Digital Age. From modern- day rideshare apps to the use of drones to deliver goods to our homes after we push a few buttons on our smartphones – digital technologies are fundamentally reshaping how we live, economies and markets, so- ciety, politics and geopolitics, community and ethics, learning and work. With the goal of making the company increasingly innovative, sustainable, adaptable and competitive in the context of the Digital Age, Braskem started a digital transformation program in 2018. The effort aims to equip company team members with a new generation of tools, which include innovative methodologies and digital technologies that enable us to operate smarter and safer, autonomous and more connected. + = Braskem team New work methodologies and digital technologies for smarter, safer, autonomous, connected operation. An increasingly innovative, sustainable, adaptable and competitive Braskem in the context of the Digital Age. Over the last five years, the company has been investing in an orga- nized and recurring way in new technologies – from preparing the necessary infrastructure to operating assets safely and reliably, to ini- tiatives that reshape how we produce basic plastic and chemical resins. Other investments in new ventures (new business models originating internally) and disruptive innovation are underway and enhance our commitment to sustainable development, alongside startups with the same purpose. In 2022, approximately R$35 million was directly allocated to the digital transformation product portfolio, which already has more than 25 initia- tives and more than 70 digital products aimed at the industry 4.0, supply chain, commercial, research and development, among others. Order of more than R$500 million per year – an amount that makes up part of the recurring gains of the Transform for Value program. Today, digital strategies are transforming practically the entire Braskem supply chain, generating estimated gains in the order of R$500 million per year – an amount that is part of the recurring gains of the Transform for Value program. Examples include: Using data science to make better decisions in processes such as predictive maintenance, quality control, process optimization, demand forecasting, logis- tics optimization, and operations planning. Implementing stand-alone systems for performing repetitive or high-risk activities. Eliminating information silos, to connect people, systems and assets to maxi- mize efficiency and productivity. Using design and user experience best practices, to improve the customer experience. Braskem has created most of its digital tools internally, with development teams working through rapid feedback cycles, learning and adapting to changes in an agile way. Indeed, our experts have already developed around 25 different ma- chine learning models used in over 400 applications in recent years. Today, the digital product development cycle, from idea to implementation of the new so- lution, is about nine months, often enabling benefits to be captured quickly. A key part of the digital transformation process has been in managing change, promoting the use of agile working methods, and acquiring skills associated with the development of digital solutions. From 2018 to date, more than 3,000 members have had the opportunity to ex- plore several complementary disciplines that foster innovative thinking, such as data science, agile, and design thinking. Building internal startups The company also diversifies its portfolio of investments in digital technologies through the creation of new business models. These new digital businesses, developed based on ideas generated within the company itself, have the mission of anticipating market changes that impact the company and the industry in general. More than half of the startups developed by 2022 are linked to the company's commitments to sustainable development. 82 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Innovation in the supply chain We believe that innovation – not only in our products and operations – but throughout our supply chain has the ability to generate a number of positive impacts in the pursuit of a more sustainable future. In this way, we seek to develop tools to prepare ourselves for the structural challenges that will enable the energy transition to a more sustainable, circular, and carbon-neutral economy. Oxygea Ventures Braskem’s digital transformation led to the foundation of Oxygea Ventures, a corporate venture capital arm launched in 2022, that is de- voted to leveraging the work of startups that operate in sustainable innovation and digital transformation. The new company is strongly linked to meeting the public commitments we have made to reduce carbon emissions and increase our plastics re- cycling rate. With Oxygea, we are incubating ideas and accelerating busi- nesses. Four initiatives are already in the early stages. They were created within Braskem and will now continue as startups. In addition, the hub intends to select six more startups. Another goal of the company, which targets Brazil, the United States, Europe and Israel, is to operate as an enabler of connections between mentors, clients and suppliers, strengthening the entire ecosystem. In addition, Oxygea comes with the technological support, expertise and structure of Braskem where tests and validations can be carried out. LEARN MORE! About Oxygea. Braskem Labs Braskem Labs in 2022 Since 2016, we have stimulated open innovation and our supply chain for chemistry and plastics, with Braskem Labs, a platform for the ac- celeration of startups that generate positive social and environmental impact. These startups focus on: agribusiness, biotechnology, pack- aging, infrastructure and construction, chemicals, mobility, and health. Carried out in partnership with the accelerator Quintessa, its main goal is to encourage this ecosystem and seek solutions to Braskem’s busi- ness challenges. Over the past six years, the platform has accelerated 132 startups, of which 96% continue to operate. In 2022, in addition to Brazilian startups, Braskem Labs expanded its borders by inviting entrepreneurs from Chile to be considered for se- lection. The choice of country was based on the maturity of its inno- vative ecosystem, which stand out in Latin America. Chile is also an important partner in the company’s business strategy. This initiative functioned as a pilot project to evaluate the possibility of Braskem Labs expanding to other countries. Recognitions and Events Innovation Culture Braskem is one of the 20 most innovative companies in Brazil. The position was awarded by Innovative Workplaces, a study by the MIT Technology Review magazine, of the Massachusetts Institute of Technology. Innovation Leader The Top 100 Open Corps 2022 ranking recognized Braskem’s leadership role in developing innovations in partnership with startups. The company also appears in the top five in the Manufacturing and Chemical Industry category. 20 accelerated startups. 40+ mentors. 20 meetings over 5 months. 50 hours of training and 17 hours of individual mentoring support. 27 ongoing partnerships and/or pilots. 250 connections made. 83 LEARN MORE! About Braskem Labs. Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Questions, criticisms and suggestions may be sent to braskem-ri@braskem.com.br or www.braskem.com.br/contato. About this Report GRI 2-1, GRI 2-2, GRI 2-3, GRI 2-4, GRI 2-5, GRI 2-14 Since 2007, every year we have published our Reports based on internationally recognized standards. It has been prepared in accordance with the current Global Reporting Initiative (GRI) standards, follows the IFRS Foundation’s Integrated Reporting framework, the Sustainability Accounting Standards Board (SASB) chemicals sector indicators, and the International Business Council (IBC) metrics that demonstrate progress towards stakeholder capitalism. capitals, showing how the company generates value and impacts its main stakeholders through its busi- ness model. It also makes it possible to know the pil- lars of our 2020-2030 sustainability strategy and its performance transversal to business, the material issues considered by Braskem, and the company’s strategy. Thus, the content gathers the entire ESG theme related to Braskem, in addition to the eco- nomic and financial information for 2022. This Integrated Annual Report covers the period January 1 to December 31, 2022. Subsequent events occurring in 2023 have been included and are identi- fied throughout the Report. Publication occurred on March 24, 2023. Braskem is a publicly traded company incorporated under Brazilian law, with principal place of business in the city of São Paulo (Brazil) and with global opera- tions on four continents. The Report covers the com- pany’s main activities, considering the legal entities in which Braskem has operational control and/or con- solidates information in the Financial Statements, excluding subsidiary Cetrel and its subsidiaries for social and environmental indicators. Restatements of information can be identified throughout the Report by text or explanatory notes. This Report describes Braskem’s commitments, goals and performance in the financial, human, in- tellectual, manufactured, social and relationship The 2022 Integrated Annual Report is adherent to Resolution No. 14 of the Brazilian Securities and Exchange Commission (CVM), dated December 9, 2020, which made the CPC Guideline No. 9 - Integrated Reporting, issued by the Accounting Pronouncements Committee (CPC), mandatory for publicly traded companies when deciding to pre- pare and disclose the integrated report. Additionally, it determines that the integrated report should be subject to limited assurance by an independent au- ditor registered with the CVM, in accordance with the standards issued by the Federal Accounting Council (CFC). As a way of maintaining the conciseness of the docu- ment, we highlight here part of the indicators and main- tain the public data in its entirety in an online center. Braskem’s governance agencies, including the Board of Directors, reviewed and approved the document prior to its publication. The Integrated Annual Re- port 2022 also underwent external evaluation con- ducted by KPMG. 84 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Methodology: calculation of the commitments for 2030 We calculated the progress of our commitments on three levels: global, by commitment and by indicator. Target and challenge size: target defined considering industry challenges, and the challenge size is the dif- ference between the target and the baseline. Current result: calculated as the moving average of the last three years or the actual result of the reported fiscal year, according to the methodology applied in the calculation of the baseline. The achievement of the indicators is calculated according to the formula: achievement = [(baseline - current result)/ (challenge size)] - 1. An exception is the Total Shareholder Return indicator, where the baseline is calculated considering the 10- year period 2011-2020, the current result also considers the last 10 years, and the achievement is calculated by simple variation (current result/2030 target - 1). Global progress The global progress is the arithmetic average of the individual progress of each of the seven commitments (health and safety, economic and financial results, elimination of plastic waste, combating climate change, operational eco-efficiency, social responsibility and human rights, and sustainable innovation). Progress by commitment The progress of each commitment represents the arithmetic average of the achievement of the indicators. Progress by indicator The achievement of the indicator level considers some elements: base- line, 2030 target, challenge size and current result. Baseline: calculated as the average of the 2018, 2019, and 2020 results, for indicators subject to industry volatility, or as the actual 2020 result. Indicators with baseline measured by three-year average: net debt/EBITDA, RepTrak Pulse with customers, Dow Jones Sustainability Index, absolute GHG emissions volume, renew- able electricity, Water Security Index, bioproducts production capacity, Reptrak Pulse with communities, people benefited in communities, women in leadership, black people. Indicators with baseline measured by actual 2020 result: Workplace Accident Rate (CAF + SAF), Tier 1 and 2 Accident Rate, occupational diseases, socio-environmental risks, sales of prod- ucts with recycled content, recovered plastic waste, climate ad- aptation and I&T Sustainability Index. 85 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022SASB Table of Contents Industry: Chemicals Topic Code Accounting metrics Page or answer SDG WEF-IBC Product design for use phase efficiency Operational safety, emergency preparedness, and response RT-CH-410a.1 Revenue from products designed for resource efficiency in the use phase www.braskem.com.br/ ESGdashboard RT-CH-540a.1. Process Safety Incidents Count (PSIC), Process Safety Total Incident Rate (PSTIR), and Process Safety Incident Severity Rate (PSISR) www.braskem.com.br/ ESGdashboard RT-CH-540a.2 Number of transport Incidents 11 8 8 8 www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard 12 Planet www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard Planet Planet 12 12 12 Production RT-CH-000.A Production per reported segment Safety and environmental management of chemical products RT-CH-410b.1 Percentage of products that contain the Harmonized System of Classification and Labeling of Chemicals (GHS) Category 1 and 2 Substances Hazardous to Health and the Environment, (2) percentage of such products that have undergone a risk assessment RT-CH-410b.2 Discussion of the strategy to: (1) manage chemicals of concern and; (2) develop alternatives with reduced human and/or environmental impact Genetically modified organisms RT-CH-410c.1 Percentage of products per revenue that contain genetically modified organisms (GMO) Hazardous waste management RT-CH-150a.1 Amount of hazardous waste generated, percentage recycled 86 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Topic Code Accounting metrics Page or answer SDG WEF-IBC RT-CH-140a.1. Total water removed, (2) total water consumed, percentage of each of them in regions with high or extremely high baseline water stress www.braskem.com.br/ ESGdashboard 6 and 9 Planet Water Management RT-CH-140a.2. Number of noncompliance incidents associated with water quality permits, standards, and regulations RT-CH-140a.3. Description of water management risks and discussion of strategies and practices to mitigate these risks RT-CH-110a.1 Gross global emissions of scope 1, percentage covered by emission limiting regulations Emission of greenhouse gases RT-CH-110a.2. Discussion of long- and short-term strategy or plan to manage scope 1 emissions, emission reduction targets, and analysis of target performance www.braskem.com.br/ ESGdashboard There were no incidents in 2022 that generated a fine without the possibility of new appeals. www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard 6 6 and 9 13 13 Planet Planet Power management RT-CH-130a.1. (1) Total energy consumed, (2) percentage of electricity from the grid, (3) percentage of renewables, (4) total self-generated energy www.braskem.com.br/ ESGdashboard 7 and 9 Planet Air quality RT-CH-120a.1. Atmospheric emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs) and (4) hazardous atmospheric pollutants (HAPs) Health and safety of workers RT-CH-320a.1 (1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b) outsourced employees RT-CH-320a.2. Description of the efforts to assess, monitor and reduce employees’ and outsourced workers’ exposure to long-term health (chronical) risks www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard 3 and 12 Planet 8 8 People People 87 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Topic Code Accounting metrics Page or answer SDG WEF-IBC Relations with the community RT-CH-210a.1 Discussion of engagement processes to manage risks and opportunities associated with community interests www.braskem.com.br/ ESGdashboard 11 Management of the legal regulatory environment RT-CH-530a.1 Discussion of corporate positions related to government regulations and/ or policy proposals that address environmental and social factors affecting the industry www.braskem.com.br/ ESGdashboard 16 Planet Industry: Oil and gas - Midstream Topic Code Accounting metrics Page or answer SDG WEF-IBC Competitive behavior EM-MD-520a.1 Total amount of monetary losses as a result of legal proceedings associated with federal pipeline and storage regulations EM-MD-160a.1 Description of environmental management policies and practices Não existe nenhuma perda relativa a procedimentos associados a regulamentações federais de oleodutos e armazenamento. Planet www.braskem.com.br/ ESGdashboard 8 and 12 Planet Ecological impacts EM-MD-160a.2 Percentage of land owned, leased, and/or operated in areas with protected conservation status or endangered species habitat www.braskem.com.br/ ESGdashboard Emission of greenhouse gases EM-MD-160a.3 Disturbed land area, percentage of impacted area restored EM-MD-110a.1 Gross global emissions of Scope 1, percentage covered by emission limiting regulations www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard EM-MD-110a.2 Discussion of long- and short-term strategy or plan to manage Scope 1 emissions, emission reduction targets, and analysis of target performance www.braskem.com.br/ ESGdashboard 6, 14 and 15 Planet 6, 14 and 15 Planet 13 13 Planet Planet Air quality EM-MD-120a.1 Atmospheric emissions of the following pollutants: (1) NOx (excluding N2O), (2) SOx, (3) volatile organic compounds (VOCs) and (4) particulate matter (PM10) www.braskem.com.br/ ESGdashboard 3 and 12 Planet 88 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022GRI Summary Declarations of use Braskem S.A. reports information in accordance with the GRI standards for the period 01/01/2022 to 12/31/2022 Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC GR 1 used GRI 1: Fundamentals 2021 Applicable GRI industry standards Chemicals, oil and gas Source Publication Page General disclosures GRI 2: General disclosures 2021 2-1 Organization details 10, 84, 28 2-2 Entities included in the sustainability report of the Organization 2-3 Period, frequency, and contact person for information on the Report 2-4 Reformulation of information 84 84 84 2-5 External verification 84, 110 2-6 Activities, value chain, and other business relationships 10, 11, 12, 16, 76 2-7 Employees www.braskem.com.br/ ESGdashboard 2-7d Not applicable Braskem does not have employment contracts for non-guaranteed hours. 2-8 Workers who are not employees www.braskem.com.br/ ESGdashboard 8 and 10 8 89 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 2-9 Composition and governance structure 2-10 Appointment and selection of the highest governance body 2-11 Chair of the highest governance body 26 26 26 2-12 Role performed by the highest governance body in overseeing impact management 26, 27, 28, 33 2-13 Delegation of Impact management liability 2-14 Role of the highest governance body in sustainability reporting 25, 26 84 2-15 Conflicts of Interest www.braskem.com.br/ ESGdashboard 2-16 Communication of the critical concerns www.braskem.com.br/ ESGdashboard 2-17 Collective knowledge of the highest governance body www.braskem.com.br/ ESGdashboard 2-18 Appraisal of the performance of the highest governance body www.braskem.com.br/ ESGdashboard 5 and 16 Governance principles 5 and 16 Governance principles 16 16 16 90 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 2-19 Remuneration policies www.braskem.com.br/ ESGdashboard 2-20 Process to determine compensation www.braskem.com.br/ ESGdashboard 2-21 Proportion of total annual compensation www.braskem.com.br/ ESGdashboard 2-21 2-22 Demonstration of the sustainable development strategy 2-23 Commitment policy 3, 6 35 2-24 Incorporation of the commitment policy www.braskem.com.br/ ESGdashboard 2-25 Processes to cure negative impacts www.braskem.com.br/ ESGdashboard Confidential matters The indicator is not reported because it deals with confiden- tial and sensitive information, as it could compromise the privacy of Braskem members. It is possible to understand more details of the compensation of members of the statutory board and the Board of Di- rectors in item 13 of the 2022 Reference Form. [https://api. mziq.com/mzfilemanager/ v2/d/540b55c5-af99-45f7- a772-92665eb948e9/2e4b89ce- 5139-0b20-3333-fe8f8c- 6c0d8e?origin=1] Governance principles People Governance principles 16 16 16 91 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication 2-26 Mechanisms for guidance and concerns regarding ethics Page 29, 31 2-27 Compliance with laws and regulations www.braskem.com.br/ ESGdashboard 2-28 Participation in associations 2-29 Approach for the engagement of stakeholders 53 19 2-30 Collective bargaining agreements www.braskem.com.br/ ESGdashboard Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 16 Governance principles Planet Governance principles 8 People 92 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Material topics GRI 3: Material topics 2021 3-1 Process to determine the material topics 2021 3-2 List of the material topics 2021 Economic performance GRI 3: Material topic 2021 3-3 Management of the material issues 2021 19 19 54 201-1 Direct economic value generated and distributed 54, www.braskem.com.br/ ESGdashboard 201-1b GRI 201: Economic performance 2016 201-2 Financial implications and other risks and opportunities arising from climate change 65 201-3 Obligations of the defined benefit plan and other retirement plans www.braskem.com.br/ ESGdashboard Governance principles 11.2, 11.14, 11.21 - Not applicable Braskem does not disclose, through the Financial Statements, this type of information by country. 11.14, 11.21 8 and 9 Prosperity 11.2 13 - - Prosperity 201-4 Financial support received from the government www.braskem.com.br/ ESGdashboard 201-4b Not applicable Braskem discloses the information through the Financial Statements. 11.21 93 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022 Source Publication Market presence GRI 3: Material topics 2021 3-3 Management of the material issues 2021 Page 35, 37 GRI 202: Market presence 2016 202-1 Ratio between the lowest wage and the local minimum wage, with gender breakdown 202-2 Proportion of board members hired from the local community www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard Indirect economic impacts GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard GRI 203: Indirect economic impacts 2016 203-1 Investments in infrastructure and service support 203-2 Significant indirect economic impacts Procurement practices GRI 3: Material topics 2021 3-3 Management of the material issues 2021 GRI 204: Procurement practices 2016 204-1 Proportion of expenses with local suppliers www.braskem.com.br/ ESGdashboard 43 51 52 Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 11.11, 11.14 1, 5 and 8 People 11.11, 11.14 8 5, 9 and 11 1, 3 and 8 Prosperity 11.14 11.14 8 94 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Fight against corruption GRI 3: Material topics 2021 3-3 Management of the material issues 2021 205-1 Operations assessed for corruption-related risks 33 33 GRI 205: Fight against corruption 2016 205-2 Communication and training on anticorruption policies and procedures www.braskem.com.br/ ESGdashboard 205-3 Confirmed cases of corruption and actions taken 30 Unfair competition GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard Governance principles Governance principles 16 16 16 11.20 11.20 11.20 11.20 11.19 GRI 206: Unfair competition 2016 206-1 Lawsuits for unfair competition, trust practices, and monopoly www.braskem.com.br/ ESGdashboard 206-1b Not applicable Braskem is not a party to any lawsuit of this nature. 11.19 16 95 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Taxes GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard 207-1 Tax approach www.braskem.com.br/ ESGdashboard 207-2 Governance, control, and fiscal risk management www.braskem.com.br/ ESGdashboard GRI 207: Taxes 2019 207-3 Stakeholder engagement and management of their tax concerns www.braskem.com.br/ ESGdashboard 207-4 Country-by-country reporting www.braskem.com.br/ ESGdashboard 207-4b Not applicable Braskem does not disclose, through the Financial Statements, this type of information by country. Materials GRI 3: Material topics 2021 3-3 Management of the material issues 2021 67 to 72 301-1 Materials used, broken down by weight or volume www.braskem.com.br/ ESGdashboard GRI 301: Materials 2016 301-2 Raw materials or recycled materials used 301-3 Recovered products and their packaging 70 77 11.21 1, 10 and 17 11.21 1, 10 and 17 11.21 1, 10 and 17 11.21 1, 10 and 17 11.21 1, 10 and 17 8 and 12 8 and 12 Planet 8 and 12 Planet 8 and 12 Planet 96 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Energy GRI 3: Material topics 2021 3-3 Management of the material issues 2021 302-1 Energy consumption within the organization 62 62 GRI302: Energy 2016 302-2 Energy consumption outside the organization www.braskem.com.br/ ESGdashboard 302-3 Energy intensity 302-4 Reduction of energy consumption Water and effluents GRI 3: Material topics 2021 3-3 Management of the material issues 2021 303-1 Interactions with water as a shared resource 303-2 Management of Impacts related to water disposal 62 62 66 66 66 GRI 303: Water and effluents 2018 303-3 Water collection 303-4 Water disposal www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard 303-5 Water consumption 66 97 11.1 11.1 11.1 11.1 11.6 11.6 11.6 11.6 11.6 11.6 7, 8, 12 and 13 7, 8, 12 and 13 7, 8, 12 and 13 7, 8, 12 and 13 7, 8, 12 and 13 6 and 12 6 and 12 6 6 6 6 Planet Planet Planet Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Biodiversity GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard 304-1 Operational units owned, leased, or managed within or adjacent to environmental protection areas and areas of high biodiversity value located outside of environmental protection areas www.braskem.com.br/ ESGdashboard GRI 304: Biodiversity 2016 304-2 Significant impacts of activities, products, and services on biodiversity www.braskem.com.br/ ESGdashboard 304-3 Protected or restored habitats www.braskem.com.br/ ESGdashboard 304-4 Species included in the IUCN red list and in national conservation lists with habitats in areas affected by the organization’s operations www.braskem.com.br/ ESGdashboard 11.4 6, 14 and 15 11.4 6, 14 and 15 Planet 11.4 6, 14 and 15 Planet 11.4 6, 14 and 15 11.4 6, 14 and 15 98 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Emissions GRI 3: Material topics 2021 3-3 Management of the material issues 2021 305-1 Direct emissions (scope 1) of greenhouse gases (GHG) 305-2 Indirect emissions (scope 2) of greenhouse gases (GHG) originating from the acquisition of energy 305-3 Other indirect emissions (scope 3) of greenhouse gases (GHG) 305-4 Intensity of greenhouse gas (GHG) emissions 305-5 Reduction of greenhouse gas (GHG) emissions GRI 305: Emissions 2016 59 59 59 60 59 59 305-6 Emissions of ozone- depleting substances (ODS) www.braskem.com.br/ ESGdashboard 305-7 Emissions of NOX, SOX, and other significant air emissions 73 11.1, 11.2 3, 12, 13, 14 and 15 11.1 11.1 11.1 3, 12, 13, 14 and 15 Planet 3, 12, 13, 14 and 15 Planet 3, 12, 13, 14 and 15 Planet 11.1 13, 14 and 15 11.1, 11.2 13, 14 and 15 3 and 12 11.3 3, 12, 14 and 15 Planet 99 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Waste Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC GRI 3: Material topics 2021 3-3 Management of the material issues 2021 306-1 Waste generation and significant waste-related impacts 306-2 Management of significant waste-related impacts GRI 306: Waste 2020 73 73 www.braskem.com.br/ ESGdashboard 11.5, 11.8 3, 6, 11 and 12 11.5 11.5 3, 6, 11 and 12 Planet 3, 6, 11 and 12 Planet 306-3 Generated waste 73 11.5, 11.8 3, 11 and 12 Planet 306-4 Waste not intended for final disposal www.braskem.com.br/ ESGdashboard 306-5 Waste intended for final disposal www.braskem.com.br/ ESGdashboard Environmental assessment of suppliers GRI 3: Material topics 2021 3-3 Management of the material issues 2021 GRI 308: 2016 Environmental assessment of suppliers 308-1 New suppliers selected based on environmental criteria 308-2 Negative environmental impacts of the supply chain and measures taken 51 51 51 308-2b 308-2c 308-2d 308-2e Information unavailable Braskem will define a strategy to determine, based on these assess- ments, whether there is an impact and what type (actual or potential). 11.5 3, 11 and 12 11.5 3, 11 and 12 100 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Source Publication Employment GRI 3: Material topics 2021 3-3 Management of the material issues 2021 Page 35 401-1 New hires and employee turnover www.braskem.com.br/ ESGdashboard 401-2 Benefits provided to full-time employees that are not provided to temporary or part- time employees www.braskem.com.br/ ESGdashboard GRI 401: Employment 2016 11.10, 11.11 5, 8 and 10 11.10 5, 8 and 10 Prosperity 11.10 3, 5 and 8 11.10, 11.11 5 and 8 11.7, 11.10 11.7, 11.10 8 8 401-3 Maternity/paternity leave www.braskem.com.br/ ESGdashboard 401-3c 401-3d 401-3e Not applicable Braskem does not consolidate the number of male employees who returned to work, as the issue is material for women. Labor relationships GRI 3: Material topics 2021 3-3 Management of the material issues 2021 35 GRI 402: Labor relations 2016 402-1 Minimum notice period regarding operational changes www.braskem.com.br/ ESGdashboard 101 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Occupational health and safety GRI 3: Material topics 2021 3-3 Management of the material issues 2021 GRI 403: Occupational health and safety 2018 403-1 Occupational health and safety management system 403-2 Hazard identification, risk assessment, and incident investigation 403-3 Occupational health services 403-4 Worker participation, consultation and communication with workers regarding occupational health and safety 403-5 Training of workers in occupational health and safety 403-6 Worker’s health promotion 403-7 Prevention and mitigation of occupational health and safety impacts directly linked to business relationships Page 35 17, 38 38 38 38 38 38 38 Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 11.9 3, 8 and 16 11.9 11.9 11.9 8 8 8 11.9 8 and 16 11.9 11.9 11.9 8 3 8 102 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication GRI 403: Occupational health and safety 2018 403-8 Workers covered by an occupational health and safety management system 403-9 Occupational accidents Page 38 38 403-10 Occupational diseases 38, 39 Training and education GRI 3: Material topics 2021 3-3 Management of the material issues 2021 35 GRI 404: Training and education 2016 404-1 Average hours of training per year, per employee www.braskem.com.br/ ESGdashboard 404-2 Employee skills enhancement and career transition assistance programs www.braskem.com.br/ ESGdashboard 404-3 Percentage of employees receiving regular career development and performance evaluations 37 Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 11.9 11.9 11.9 8 3, 8 and 16 People 3, 8 and 16 People 11.7, 11.10, 11.11 4, 5, 8 and 10 11.7, 11.10, 11.11 4, 5, 8 and 10 People 11.7, 11.10, 11.11 8 5, 8 and 10 103 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Diversity and equality of opportunities GRI 3: Material topics 2021 3-3 Management of the material issues 2021 Page 31 GRI 405: Diversity and equality of opportunities 2016 405-1 Diversity in governance and employee bodies www.braskem.com.br/ ESGdashboard 405-2 Proportion between the basic salary and remuneration received by women and those received by men www.braskem.com.br/ ESGdashboard Non-discrimination GRI 3: Material topics 2021 3-3 Management of the material issues 2021 GRI 406: Non- discrimination 2016 406-1 Cases of discrimination and corrective measures taken Freedom of union and collective bargaining 29 31 GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 11.11 5, 8 and 10 11.11 5 and 8 Governance principles 11.11 5, 8 and 10 People 11.11 11.11 5 and 8 5 and 8 People 8 8 People GRI 407: Freedom of association and collective bargaining 2016 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk www.braskem.com.br/ ESGdashboard 407b Not applicable Although Braskem does not have a specific mapping for this issue, it was not observed that such a situation had occurred with our suppliers in our analysis processes. 104 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Child labor GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard GRI 408: Child labor 2016 408-1 Operations and suppliers with significant risk of child labor cases www.braskem.com.br/ ESGdashboard 408-1c Not applicable It was not observed in our mapping process that such a situation has occurred with our suppliers. Forced labor or slave-like labor GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard GRI 409: Forced labor or slave-like labor 2016 409-1 Operations and suppliers with significant risk of cases of forced or compulsory labor www.braskem.com.br/ ESGdashboard 409b Not applicable It was not observed in our mapping process that such a situation has occurred with our suppliers. Security practices 2016 GRI 3: Material topics 2021 3-3 Management of the material issues 2021 51 GRI 410: Security practices 2016 410-1 Security personnel trained in human rights policies or procedures www.braskem.com.br/ ESGdashboard 8 and 16 8 and 16 People People 8 8 16 16 11.18 11.18 105 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Local communities GRI 3: Material topics 2021 3-3 Management of the material issues 2021 Page 43, 54 GRI 413: Local communities 2016 413-1 Operations with local community engagement, impact assessments, and development programs 413-2 Operations with significant actual or potential negative impacts on local communities www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard Social evaluation of suppliers 2016 GRI 3: Material topics 2021 3-3 Management of the material issues 2021 51 GRI 414: Social evaluation of suppliers 2016 414-1 New suppliers selected based on environmental criteria www.braskem.com.br/ ESGdashboard Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC 11.15 1 and 2 11.15 - 11.15 1 and 2 11.10, 11.12 5, 8 and 16 11.10, 11.12 5, 8 and 16 106 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Public policies GRI 3: Material topics 2021 3-3 Management of the material issues 2021 Page 29 Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC GRI 415: Public polices 2016 415-1: Political contributions www.braskem.com.br/ ESGdashboard 415-1a 415-1b Not applicable Not applicable – Article No. 81 of Law No. 9,504/1997, subsequently revoked by Law No. 13,165/2015. Our Code of Conduct also makes this rule explicit. Consumer health and safety GRI 3: Material topics 2021 3-3 Management of the material issues 2021 57 416-1 Evaluation of health and safety Impacts caused by product and service categories www.braskem.com.br/ ESGdashboard GRI 416: Consumer health and safety 2016 416-2 Cases of noncompliance regarding health and safety impacts caused by products and services www.braskem.com.br/ ESGdashboard 416-2a 416-2b Not applicable No non-conformities, administrative or legal proceedings related to health and safety of impacts of products and services on customers were verified in the period in question. 107 Governance principles 11.22 11.3 11.3 16 16 16 16 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Source Publication Page Omitted requirement(s) Reason Explanation Omission Industry GRI ref. no. SDG ref. no. WEF-IBC Marketing and labeling GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard 417-1 Requirements for information and product and service labeling 417-2 – Cases of non-compliance in relation to Information and labeling of products and services www.braskem.com.br/ ESGdashboard www.braskem.com.br/ ESGdashboard GRI 417: Marketing and labeling 2016 417-3 – Cases of non- compliance in relation to marketing communication www.braskem.com.br/ ESGdashboard 417-3a 417-2b Not applicable There were no administrative or legal proceedings related to marketing and communication during the period in question. Customer privacy GRI 3: Material topics 2021 3-3 Management of the material issues 2021 www.braskem.com.br/ ESGdashboard GRI 418: Customer privacy 2016 418-1 Proven complaints regarding privacy violations and loss of customer data www.braskem.com.br/ ESGdashboard 418-1a 418-1b 418-1c Not applicable There were no complaints from owners or authorities regarding breaches of privacy or leaks of customer, member or supplier data. 12 and 16 12 16 16 16 16 108 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Material themes Sustainability Material themes GRI indicators ENVIRONMENTAL 1. Biodiversity and land use 2. Climate changes 3. Post-consumer plastics 4. Air pollution 5. Energy efficiency 6. Waste management 3-3 304; 304-1; 304-2; 304-3; 304-4 201-2; 3-3 201; 305-1; 305-2; 305-3; 305-4; 305-5; 305-6; 305-7 301-2; 301-3 3-3; 305-1; 305-2; 305-3; 305-4; 305-5; 305-6; 305-7 3-3 302; 302-1; 302-2; 302-3; 302-4 301-2; 301-3; 3-3 306; 306-1; 306-2; 306-3; 306-4; 306-5 7. Water and effluent management 3-3 303; 303-1; 303-2; 302-3; 303-4; 303-5 8. Raw material impacts 3-3 301; 301-1; 301-2; 301-3; 3-3 308; 308-1; 308-2 9. Diversity, equity and inclusion 202-1; 3-3 405; 405-1; 405-2; 3-3 406; 406-1 10. Communities and social investments 201-1; 202-2; 203-2; 204-1; 3-3 413; 413-1; 413-2 SOCIAL 11. Health, safety and well-being 3-3 403; 403-1; 403-2; 403-3; 403-4; 403-5; 403-6; 403-7; 403-8; 403-9; 403-10 12. Human rights 401-3; 3-3 407; 407-1; 3-3 408; 408-1; 3-3409; 409-1; 3-3 410; 410-1 13. Employment, development and retention 201-3; 202-1; 3-3 401; 401-1; 401-2; 3-3 402; 402-1; 3-3 404; 404-1; 404-2; 404-3 14. Responsible production and consumption 204-1; 3-3 308; 308-1; 308-2; 3-3 414; 414-1 15. Innovation, technology and digitalization ECONOMICS 16. Economic and financial performance 2-6; 203; 3-3 201; 201-1; 201-3; 203-1; 203-2 17. Product management 18. Supply chain management 301-3; 302-3 204-1; 3-3 308; 308-1; 308-2; 3-3 414; 414-1 20. Risk and opportunity management 2-6; 2-12; 2-13; 2-14; 2-18; 2-20; 2-21; 2-24; 205-1; 207-1; 207-2; 207-4; 3-3 407; 3-3 408; 3-3 409 GOVERNANCE 21. Management of relationship with stakeholders 2-3; 2-4; 2-5; 2-7; 2-8; 2-17; 2-23; 2-25; 2-28; 2-29; 2-30; 201-3; 205-2; 207-3 22. Governance, ethics and compliance 2-1; 2-2; 2-9; 2-10; 2-11; 2-15; 2-16; 2-19; 2-22; 2-26; 2-27; 205-3; 206-1; 207-2 109 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Assurance Letter 110 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022111 Integrated Report 2022Message from the chairman of the Board of DirectorsMessage from the business leaderBraskemCompany's strategyGovernance, ethics and complianceRisk managementCapital performanceHuman CapitalFinancial CapitalNatural CapitalManufactured CapitalSocial and Relationship CapitalIntellectual CapitalAbout the ReportSASB content summaryGRI content summaryHighlights from 2022Credits Braskem Carolina Rodrigues Pignata Gabriela Linhares Bacarin Marina Muniz Rossi Tamiris Yuri Sakamoto Thiago Gonçalves Vittoria Neves Picarelli TheMediaGroup Consulting, content and design Images Brand Center Braskem Getty Images Verification KPMG GRI 2-5

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