Braskem

Braskem's ESG Dashboard holds all indicators of material issues reported in accordance with the GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board) guidelines. Browse and learn about our results in the environmental, social, economic and governance dimensions.

GRI 406-1 Discrimination cases and corrective measures taken

In the year 2020, we received 5 reports of “discrimination”, of which 4 were closed and 1 is still under analysis.

GRI 412-1 Operations submitted to analyses or assessments of impact on human rights

All our operations were submitted to the first study of impact assessment on human rights, conducted in 2017, which were considered valid since the priority risks were incorporated to the risk matrix.Based on this diagnosis, we developed an action plan for risk management in human rights in the short, medium and long term. In 2020, we fulfilled 78% of the established actions.

GRI 412-2 Employees trained on human rights policies and practices

In December 2019, DL on Global Policy of Sustainable Development was launched, which emphasizes and discloses our public commitment with regard to human rights. Therefore, the topic was addressed in training, which was considered in the number of team members trained in 2020 (43). In addition, in the workshop rounds on the number 6 2030 Macro Goal (Social Responsibility and Human Rights), we conducted a more detailed training on the subject with the participants (84).
On December 10, 2020, on the International Human Rights Day, we launched a more comprehensive and specific training on Human Rights, in Portuguese and in English, as a module of the Sustainable Development Knowledge Path. We do not yet have the results for 2020, considering the date it was launched, but our goal is to disseminate this material and content for a comprehensive training of our team members and third parties on the topic.

GRI 412-3 Significant investment agreements and contracts that include clauses on human rights or that were subject to assessment regarding human rights

All contracts have an anti-corruption clause and adherence to the Third Party Code of Conduct, which contains clauses on human rights. In 2020, there were no investment contracts or agreements that led the organization to taking a majority shareholding position in another entity.

GRI 202-2 Proportion of senior management members hired in the local community

Members of the executive board hired in the local community¹²³
Brasil 2018 2019 2020
Total executive board members   275 278
Members of the executive board hired in the local community   156 151
Percentage of the executive board hired in the local community 58% 57% 54%
Germany 2018 2019 2020
Total executive board members   11 8
Members of the executive board hired in the local community   7 2
Percentage of the executive board hired in the local community 75% 64% 25%
Mexico 2018 2019 2020
Total executive board members   38 39
Members of the executive board hired in the local community   10 11
Percentage of the executive board hired in the local community 28% 26% 28%
International offices⁴ 2018 2019 2020
Total executive board members   22 25
Members of the executive board hired in the local community   2 2
Percentage of the executive board hired in the local community 11% 9% 8%

¹ Team members who lead others are considered as members of senior management (managers, directors, vice-presidents and business leader).
² Local community is considered as those born in the same state where they work.
³ Indicator not monitored in the USA due to legal aspects.
⁴ Includes countries as Netherlands, Chile, Argentina, Peru, Colombia, India and Singapore.

GRI 405-1 Diversity in governance bodies and among employees

Percentage of individuals in the organization’s governance bodies, by gender Board of Directors
2020 Men 85.71%
Women 14.29%
Percentage of individuals in the organization’s governance bodies, by age group Board of Directors
2020 < 30 years 0.00%
30 to 50 years 35.71%
> 50 years 64.29%
Percentage of team members, by functional category and gender 2019 2020
Men Women Men Women
Operational/technical 88.49% 11.51% 88.45% 11.55%
Administrative 47.57% 52.43% 46.11% 53.89%
Leaderships 70.14% 29.86% 70.30% 29.70%
Total 77.09% 22.91% 76.28% 23.72%
Percentage of team members, by functional category and age group 2019 2020
< 30 years 30 to 50 years > 50 years < 30 years 30 to 50 years > 50 years
Operational/technical 19.49% 59.02% 21.49% 16.83% 60.52% 22.65%
Administrative 28.31% 58.05% 13.64% 27.23% 60.35% 12.42%
Leaderships 3.32% 75.59% 21.09% 2.92% 76.49% 20.58%
Total 19.81% 60.55% 19.63% 17.78% 62.25% 19.97%
Percentage of black team members, by functional category and gender 2019 2020
Men Women Men Women
Operational/technical 89.37% 10.63% 89.11% 10.89%
Administrative 47.62% 52.38% 46.18% 53.82%
Leaderships 76.62% 23.38% 75.00% 25.00%
Total 82.59% 17.41% 81.46% 18.54%
Diversity
  2018 2019 2020 2019/2020
Men 77% 77% 76% -0.5 p.p.
Women 23% 23% 24% 0.8 p.p.
Women in leadership 27% 30% 30% -0.1 p.p.
Black people 29% 30% 30% -0.1 p.p.
Black people in leadership 13% 13% 13% -0.3 p.p.
Role % women in leadership - Global
Coordinator 34%
Manager 25%
Director 26%
Vice-presidents 22%
Business Leader (CEO) 0%
Total 30%

GRI 102-41 Collective bargaining agreements

Total 80.5%, of which: Brazil 99.1%, USA 7.9% and Mexico 40.6%. In Germany, there is no such option for the chemical and petrochemical categories. In Brazil, all collective labor negotiations are conducted by our Labor Relations team or by employers' unions, always with the support and participation of the company's internal team.

GRI 102-8 Information on employees and other workers

Team members by country
  2018 2019 2020
Brazil 6,173 6,050 6,088
Mexico 812 830 831
United States 754 759 764
Germany¹ 188 202 151
International offices Netherlands 81 65 123
All other countries 34 36
Total 8,008 7,940 7,993

¹ Fewer team members in 2020 results from the decision to shut down the Frankfurt office in April 2020.

 
Third parties¹
  2018 2019 2020
Third parties 14,759 16,231 14,689

¹ Information for our industrial units and offices managed in Brazil only.

 
PERSONAL EXPENSES (in USD million)
  2018 2019 2020
Direct compensation 339 333 288
Benefits 72 74 55
FGTS [Fundo de Garantia de Tempo de Serviço (Employment Severance Fund)] 17 21 15
Total 428 429 358
Type of employment agreement and gender
2019
Country Men Women Indefinite term Men Women Indefinite term Total
Brazil 4,674 1,358 6,032 7 11 18 6,050
United States 613 146 759 0 0 759 759
Germany 120 76 196 6 0 6 202
Mexico 637 193 830 0 0 0 830
International offices
Netherlands 43 18 61 1 3 4 65
All other countries 20 14 34 0 0 0 34
Total 6,107 1,805 7,912 14 14 28 7,940
2020
Country Men Women Indefinite term Men Women Fixed term Total
Brazil 4,645 1,433 6,078 3 7 10 6,088
United States 615 149 764 0 0 0 764
Germany 103 44 147 4 0 4 151
Mexico 639 192 831 0 0 0 831
International offices
Netherlands 54 29 83 14 26 40 123
All other countries 20 16 36 0 0 0 36
Total 6,076 1,863 7,939 21 33 54 7,993
Team members per type of employment agreement and region
2020 Indefinite term Fixed term Total
São Paulo 2,022 5 2,027
Rio de Janeiro 384 0 384
Bahia 1,589 4 1,593
Alagoas 554 0 554
Rio Grande do Sul 1,527 1 1,528
Other 2 0 2
Total 6,078 10 6,088
Number of team members per type of employment and gender
2019
Country Men Women Fulltime Men Women Part-time Total
Brazil 4,676 1,365 6,041 5 4 9 6,050
United States 613 144 757 0 2 2 759
Germany 121 70 191 5 6 11 202
Mexico 637 193 830 0 0 0 830
International offices
Netherlands 44 21 65 0 0 0 65
All other countries 20 14 34 0 0 0 34
Total 6,111 1,807 7,918 10 12 22 7,940
2020
Country Men Women Full time Men Women Part-time Total
Brazil 4,646 1,438 6,084 2 2 4 6,088
United States 615 147 762 0 2 2 764
Germany 102 41 143 5 3 8 151
Mexico 639 192 831 0 0 0 831
International officess
Netherlands 68 55 123 0 0 0 123
All other countries 20 16 36 0 0 0 36
Total 6,090 1,889 7,979 7 7 14 7,993
Team members per age group 2019 2020
< 30 years 1,573 1,421
30 to 50 years 4,808 4,976
> 50 years 1,559 1,596
Total 7,940 7,993
Team members per functional category 2019 2020
Operational/technical 5,263 5,187
Administrative 1,833 1,916
Leaderships 844 890
Total 7,940 7,993
Diversity
  2018 2019 2020
Men 77% 77% 76%
Women 23% 23% 24%
Women in leadership 27% 30% 30%
Black people 29% 30% 30%
Black people in leadership 13% 13% 13%

GRI 202-1 Proportion of lowest paid salary by gender compared to the local minimum salary

Proportion of the lowest salary compared to the local minimum salary
By region 2018 2019 2020
Alagoas 1.5 1.6 1.5
Bahia 1.6 1.6 1.6
Rio de Janeiro 2.1 2.2 2.1
Rio Grande do Sul 1.8 1.8 1.8
São Paulo 1.7 1.7 1.7
United States 3.5 3.5 3.7
Germany 2.1 2.0 1.6
Mexico 3.3 3.4 2.6

GRI 401-1 Employee Turnover Rate

Employee Turnover Rate
  2017 2018 2019 2020
Total employee turnover rate 5.6% 5.1% 8.5% 5.6%
Voluntary employee turnover rate 1.66% 1.99% 2.5% 2.5%

GRI 405-2 Ratio of basic salary and remuneration of women to men

Mathematical reason between the reference salary and those received by men in each functional category – Operations unit
Country Functional category Gender 2018 2019 2020
Brazil Operational/ technical Women 1.65 1.65 1.66
Men 1.71 1.71 1.71
Administrative Women 1.17 1.16 1.07
Men 1.17 1.15 1.08
Leaderships Women 1.23 1.24 1.19
Men 1.17 1.15 1.08
United States Operational/ technical Women 1.09 1.13 1.16
Men 1.28 1.27 1.28
Administrative Women 1.01 1.01 1.11
Men 1.05 1.05 1.11
Leaderships Women 1.00 1.00 1.28
Men 1.00 1.00 1.33
Mexico Operational/ technical Women 1.56 1.58 1.57
Men 1.56 1.61 1.64
Administrative Women 1.54 1.54 1.53
Men 1.57 1.56 1.53
Leaderships Women 1.67 1.56 1.48
Men 1.91 1.86 1.79
Germany Operational/ technical Women 1.33 1.32 1.31
Men 1.32 1.31 1.30
Administrative Women 1.00 1.00 1.00
Men 1.00 1.00 1.00
Leaderships Women 1.00 1.00 1.00
Men 1.00 1.00 1.00

GRI 204-1 Proportion of expenses with local suppliers

Purchase budget spent with local suppliers¹
Brazil 2018 2019 2020²
Budget for suppliers (BRL) 5,481,198,052.36 7,047,199,647.17 6,839,811,189.38
Amount spent with local suppliers (BRL) 4,559,409,104.53 5,177,229,005.68 5,389,586,076.10
% of budget spent with local suppliers 83.18% 73.47% 78.80%
United States 2018 2019 2020²
Budget for suppliers (BRL) 1,602,871,645.87 1,933,828,619.89 2,350,838,979.96
Amount spent with local suppliers (BRL) 1,410,940,107.76 1,796,051,223.01 2,304,318,224.42
% of budget spent with local suppliers 88.03% 92.88% 98.02%
Germany 2018 2019 2020²
Budget for suppliers (BRL) 591,696,090.97 488,257,835.33 386,066,718.13
Amount spent with local suppliers (BRL) 317,638,223.15 277,948,572.72 269,503,363.20
% of budget spent with local suppliers 53.68% 56.93% 69.81%
Mexico 2018 2019 2020²
Budget for suppliers (BRL) 548,488,633.90 631,977,130.80 727,352,594.15
Amount spent with local suppliers (BRL) 383,293,865.30 395,082,793.11 543,592,360.65
% of budget spent with local suppliers 69.88% 62.52% 74.74%

¹ We consider suppliers established in the same country of use as “local” and the places of significant operations are the countries that have industrial units.
² 2020 has a greater number of local purchases due to the pandemic that restricted commercial activities between countries.

GRI 414-1 New suppliers selected based on social criteria

Less than 1% of new suppliers selected based on this criterion.

SASB RT-CH-320a.1 (1) Total recordable incident rate (TRIR) and (2) Fatality rate for (a) direct employees and (b) contract employees

RESULTS 2021 (1MM/MWH)
(1) Total recordable incident rate (TRIR) 0.5
(2) Fatality rate for direct employees 0
(3) Fatality rate for contract employees 0.04

SASB RT-CH-320a.2 Description of efforts to assess, monitor, and reduce exposure of employees and contract workers to long-term (chronic) health risks

The Intelius management system contains tools that allow the identification and prevention of impacts on the safety and health of the worker. Braskem employees and contractors are trained in the use of these tools, which apply to all company activities. Intelius provides for corporate audits of these tools, in addition to internal audits that take place in the various plants.

Customers and later users can find information for substances containing OEL (Occupational Exposure Limit) in the BRASKEM Safety Data Sheet. They also obtain the necessary engineering control measures and personal protective equipment from Braskem's Safety Data Sheets.

SASB RT-CH-540a.1 Process safety incidents count (PSIC), process safety total incident rate (PSTIR) and process safety incident severity rate (PSISR)

Process Safety Incidents Count (PSIC);

  • Tier 1 = 3
  • Tier 2 = 16
  • Tier 3 = 4191

Process Safety Incident rate (PSTIR)

  • Taxa Tier 1 = 0.07
  • Taxa Tier 2 = 0.39

Process Safety Incident Severity Rate (PSISR)

  • Tier 1 rate = 0.27

GRI 416-1 Products and services which are assessed for health and safety impacts

100% of Braskem products and services are assessed for health and safety impacts.

GRI 417-1 Requirements for information and labeling of products and services

Labeling information follows the SDS information (GHS format) and are handled by each site. ANX 6020-00840 – Chemical hazard information is the internal procedure used. All categories of significant products are assessed and audited by Braskem.

GRI 403-1 Occupational health and safety management system

Braskem's HSE, Quality and Productivity Management System, Intelius, was created and implemented right at the beginning of the company's operations, and has undergone several revisions over the years. Intelius was created using the PDCA concept of the international standards ISO 45.000 (Safety and Health), ISO 14000 (Environmental Management) and ISO 9000 (Quality Management). The Corporate HSE team, the area responsible for Intelius' HSE pillar, is made up of Braskem members and is responsible for the management of this system. The disciplines of Workplace Safety and Occupational Health monitor the global performance monthly through standardized KPIs. The countries, on the other hand, do their own local monitoring. Global goals are established annually, following the principle of continuous improvement. Intelius is a global management system. Its requirements apply both to members of Braskem itself and to service providers.

GRI 403-2 Hazard identification, risk assessment and incident investigation

The activities that are carried out at Braskem can be classified as routine or non-routine.

Routine activities in general are cataloged and have their step-by-step defined and the risks to safety and health at each stage identified and evaluated. Non-routine activities do not have these pre-identified risks, which is performed before they are performed by the team of performers at the location where the activity will be performed.

In both cases, the team that performs the hazard identification seeks, whenever possible, to apply the concepts of the hierarchy of controls, identifying the hazards, replacing them or reducing them whenever possible. Risk analyzes and the use of procedures and checklists are administrative measures and define, among others, the use of PPE, the latter constituting the worker protection tool. It is at this point that the implementation of other measures is also being evaluated, with the inclusion of new engineering controls and new administrative measures.

Activities that are previously classified as high risk in procedure, whether routine or not, such as activity in confined spaces and work in energized electrical installations, require additional risk analysis steps.

The quality of the tools listed above is guaranteed through internal audits carried out by the plants themselves or audits carried out by Corporate areas, in addition to the fact that all workers must be qualified before carrying out any task. In addition to audits, there are regular field inspection routines that aim to assess risk assessments, among other objectives.

The process of assessing the hazards and risks of the activities to be carried out is the moment when the workplace and its conditions must be evaluated. Work can only start when the activity is safe, that is, when previously identified risks have control measures to mitigate them. However, during the execution of the work, which is dynamic, workers must always be positioned in a safe way, or if there is a risk of some material falling on it, among so many other risks. In addition, they may exercise the right of refusal if they consider that the security measures are not sufficient to neutralize the risks.

The results of field audits and inspections, in addition to information from reports of occupational accidents, are constantly used to review procedures and eventually create performance indicators that allow for better management of Braskem's HSE management system.

Braskem has a procedure that defines the incident investigation and communication process, which will define, among others, its classification, the methodology used in its investigation, the definition of corrective and preventive actions. In general, incident investigations provide relevant inputs for the improvement of the management system, such as the revision of a procedure or guideline, the need for new training, the definition of a new way of controlling risk, opting for preferably by eliminating the risk or replacing or reducing it according to the hierarchy of controls.

GRI 403-3 Occupational health services

At Braskem, the disciplines of Occupational Hygiene and Occupational Health are part of the same area with the same coordination. The objective is integration, since the risks mapped and controlled by one area are monitored by the other, through the worker's health profile. Regarding the facilities, almost 100% of Braskem's units have medical assistance in the workplace, facilitating access and health surveillance for workers. The exception is remote offices, where we have between one and ten employees. Braskem's health services structure is made up of certified occupational doctors and occupational nurses with experience in the area. In addition, it has nursing technicians and administrative assistants for support. Depending on the number of employees, these services are performed by associates or third parties and can be composed of all these functions or not. It is important to emphasize that Braskem always seeks to be more restrictive than the law, with its staff, normally, having a number and type of professionals in an amount higher than that defined in the legal requirement. Also to support this process, a Occupational Hygiene team works in partnership with the Health area for risk management. This team can be composed of occupational hygienists, hygiene technicians and ergonomists.

The health services are equipped with certified equipment and have legally qualified doctors and nurses, in addition to nursing technicians. Occupational health assessments are carried out mainly in the medical services, in the workplace. The scope of the HES management system includes auditing of medical facilities, processes and information management.

GRI 403-4 Worker participation, consultation and communication on occupational health and safety

Our policy, principles of Health, Safety and Quality) define the commitments and expectations of HSE (Health, Safety and Environment) in line with Braskem's culture. A basic cultural principle that supports the HSE Pillar is the Culture of Involvement. This principle defines that “Leaders and team members are engaged in an honest and open HSE dialogue without repercussions. Team members actively work as a team to improve our EHS performance (for example, participation in process risk analysis, incident investigations, audits, etc.). In addition, we have mechanisms in place to ensure proper accountability for meeting performance expectations and also to recognize cases of success and contributions to our EHS performance.

GRI 403-5 Worker training on occupational health and safety

Number of trained members: 6,894

MHW trained: 90,436

GRI 403-6 Promotion of worker health

In order to support the promotion of the non-occupational health of our members, we offer health plans, which cover general and dental health services. For the contractors, Braskem requires, through a service contract, the existence of health insurance. In addition to health insurance, Braskem promotes other health support actions, such as: vaccination campaigns; educational campaigns; quality of life and cardiac risk tests, as well as occupational medical monitoring; screening for early detection of breast and prostate cancer; nutritional monitoring; company gym; financial support in carrying out physical activities; support to fight smoking and others. Not all of these actions occur on all sites. It depends on the number of employees, location, legal requirements and health profile of the worker. These programs apply only to employees.

GRI 403-7 Prevention and mitigation on occupational health and safety impacts directly linked by business relationships

The Intelius management system contains tools that allow the identification and prevention of impacts to the safety and health of the worker. Braskem employees and contractors are trained in the use of these tools, which apply to all company activities. Intelius provides for corporate audits of these tools, in addition to internal audits that take place in the various plants.

Customers and later users can find information for substances containing OEL (Occupational Exposure Limit) in the BRASKEM Safety Data Sheet. They also obtain the necessary engineering control measures and personal protective equipment from Braskem's Safety Data Sheets.

GRI 403-8 Workers covered by an occupational health and safety management system

100% of team members are covered by the occupational health and safety management system.

GRI 403-9 Work-related injuries

Workplace accidents¹
  2018 2019 2020
Team members Workers who are not team members Team members Workers who are not team members Team members Workers who are not team members
Number of hours worked 17,092,597 26,017,000 17,117,253 30,986,736 16,136,552 4,988,785
Number of deaths due to workplace accidents 0 0 0 0 0 1
Death rate due to workplace accidents 0 0 0 0 0 0.04
Number of workplace accidents with serious consequences (except deaths) 11 12 5 14 4 2
Workplace accident rate with serious consequences (except deaths) 0.64 0.46 0.29 0.45 0.25 0.08
Number of workplace accidents with mandatory reporting (including deaths) 18 28 12 51 13 26
Workplace accident rate with mandatory reporting (including deaths) 1.05 1.08 0.70 1.65 0.81 1.04

¹ Number of hours worked base 1,000,000.

GRI 403-10 Health issues related to work

Professional diseases
  2018 2019 2020
Team members Team members Team members
Number of deaths due to professional diseases 0 0 0
Number of cases of mandatory reporting professional diseases (including deaths) 4 6 1
Describe the main types of professional diseases Two cases of burnout/occupational stress; one case of hearing loss and one case of chemical pneumonia Three cases of burnout/occupational stress, three cases of chemical inhalation in emergency One case of burnout/ occupational stress One case of burnout/occupational stress
Private social investment
Indicator 2020 2019 2018
Number of beneficiaries¹ 236,944 533,447 199,281
Amount donated 25,440,555.98² 8,886,492.61 11,214,187.61
Amount invested in ISP [Investimento Social Privado (Private Social Investment)] 7,278,548.78 14,570,068.26³ 9,570,478.67

¹ 1. includes beneficiaries from ISPs, donations and volunteering
² includes donations related to fighting Covid-19
³ includes investments related to Maceió (TC1)

SASB RT-CH-210a.1 Discussion of engagement processes to manage risks and opportunities associated with community interests

In line with our Global Sustainable Development Policy, we seek to promote actions that guarantee social and economic development in the communities where we operate, with a focus on generating positive impacts and mitigating any negative impacts generated by the operation. We also maintain a consistent policy of Private Social Investments, Donations and Sponsorships to build long-lasting and permanent relationships with the communities that live near our facilities. We are clear that partnerships are essential to achieve our goals. Therefore, we add efforts and work together with several links in our value chain and in society. The priority of our actions is to manage plastic consumption and post-consumption practices and to foster innovation, entrepreneurship and local development in all regions where we operate. Find out more about our projects at www.braskem.com/comunidades.

GRI 203-1 Development and impact of investments on infrastructure and provided services

In line with our Global Sustainable Development Policy, we seek to promote actions that guarantee social and economic development in the communities where we operate, with a focus on generating positive impacts and mitigating any negative impacts generated by the operation. We also maintain a consistent policy of Private Social Investments, Donations and Sponsorships to build long-lasting and permanent relationships with the communities that live near our facilities. We are clear that partnerships are essential to achieve our goals. Therefore, we add efforts and work together with several links in our value chain and in society. The priority of our actions is to manage plastic consumption and post-consumption practices and to foster innovation, entrepreneurship and local development in all regions where we operate. Find out more about our projects at www.braskem.com/comunidades .

GRI 413-1 Operations with implemented local community engagement programs, impact assessment and local development

All operations have:

1) Local development programs based on the communities’ needs;
2) Committees and comprehensive consultation processes to the local community, including vulnerable groups – Community Advisory Boards and other relationship boards with community leaders or directly with the community;
3) Formal complaint and claim processes by local communities (official contact via website and specific channel, either line 0800 or WhatsApp)

GRI 413-2 Operations with significant actual and potential negative impacts on local communities

Our business and operations are inherently subject to environmental, health and safety hazards. As a result, our business is subject to strict environmental regulations, among others. Despite our environmental, health and safety standards, policies and controls, our operations continue to be subject to incidents or accidents that could adversely affect our business or reputation, which could result in significant environmental and social impacts. We conduct a continuous assessment of the potential impacts arising from the industrial operation and monitor each of the potential scenarios that may affect the environment and the surrounding communities together with the Board of Directors.

SASB RT-CH-110a.1 Gross global Scope 1 emissions, percentage covered under emissions-limiting regulations

(1)

Gross global Scope 1 emissions (direct)
2018 2019 2020
10,214,251 10,032,221 10,035,761

(2) 0.04% of emissions covered by regulations (EU ETS)

SASB RT-CH-110a.2 Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets

Since 2008 Braskem has been conducting an annual inventory of GHG emissions, its main tool for managing the topic. In 2020, Braskem assumed important commitments that will be part of a new period of transformations: it has medium and long-term goals of reducing GHG emissions observed in 2019 by 15% by 2030 and achieving carbon neutrality by 2050. The path to achieving the targets lies in a set of initiatives: improving energy efficiency in existing operations; increasing the use of renewable and low-carbon energy sources; and exploring and investing in new low-carbon-intensity process technologies.

SASB RT-CH-120a.1 Air emissions of the following pollutants: (1) NOX (excluding N2O), (2) SOX, (3) volatile organic compounds (VOCs), and (4) hazardous air pollutants (HAPs)

Significant atmospheric emissions (ton.) 2018 2019 2020
NOx 10,566 11,529 11,908
SOx 4,871 3,982 5,989
Volatile organic compounds (VOCs) 9,091 8,753 7,523
Toxic air pollutants¹ 595 551 526
Particulate matter (PM) 1,381 932 976
Other² 7,989 6,622 4,810

¹ Includes Toxic Air Pollutants and HAP (Hazardous Air Pollutants).

GRI 305-1 Direct greenhouse gas emissions (Scope 1)

  2018 2019 2020
Scope 1 (direct emissions) (tCO2e) 10,214,251 10,032,221 10,035,761

GRI 305-2 Direct greenhouse gas emissions (Scope 2)

  2018 2019 2020
Scope 2 (direct emissions) (tCO2e) 802,590 806,347 735,479

GRI 305-3 Indirect greenhouse gas emissions (Scope 3)

  2018 2019 2020
Scope 3 (indirect emissions) (tCO2e) 24,009 26,426,302 21,487,103

GRI 305-4 Intensity of greenhouse gas emissions (tCO2e)

2018 2019 2020
0.609 0.640 0.669

GRI 305-5 Reduction of greenhouse gas emissions

In terms of reducing emissions, we are working on expanding the use of renewable energy in our operations and constantly improving our energy efficiency. As a result, over the past 13 years, we have managed to reduce CO2 emissions by around 17%. This effort should be reflected in the achievement of our intermediate goal of reducing total greenhouse gas emissions by 15% by 2030, from the current 10.8 million in 2019 to 9.2 million tons of CO2e.

GRI 305-6 Emissions of ozone-depleting substances (ODS) in t CFC-11 equivalent¹

2018 2019 2020
2.9 2.6 2.9

¹ The reported values are for consumption of ODS: HCFC – 141b, HCFC-22, HCFC – 125, HFC-134a, HFC-32, R132, R404A, R407C, R410A.

GRI 305-7 Emissions of NOx, SOx and other significant atmospheric emissions

Significant atmospheric emissions (ton.) 2018 2019 2020
NOx 10,566 11,529 11,908
SOx 4,871 3,982 5,989
Volatile organic compounds (VOCs) 9,091 8,753 7,523
Toxic air pollutants¹ 595 551 526
Particulate matter (PM) 1,381 932 976
Other² 7,989 6,622 4,810

¹ Includes Toxic Air Pollutants and HAP (Hazardous Atmospheric Pollutants).
² Includes total hydrocarbons and carbon monoxide.

SASB - RT-CH-130a.1 (1) Total energy consumed; (2) Percentage grid electricity; (3) Percentage renewable; (4) Total self-generated energy

Energy 2020 2019 2018
Total energy consumed 187,427,132.6 GJ 187,802,332.88 GJ 197,580,251.9 GJ
Percentage grid electricity 6.8% 7.4% 8.3%
Percentage renewable 5.1% 6.4% 7.1%
Total self-generated energy 6,711,404.4 GJ    

GRI 302-1 Energy consumption within the organization

Non-renewable sources (GJ) 2018 2019 2020
Natural Gas 49,883,055.00 GJ 48,207,233.45 GJ 43,074,120.61 GJ
Fuel Oil 139,927.39 GJ 146,788.28 GJ 582.20 GJ
Coal 9,142,849.24 GJ 7,806,966.11 GJ 8,667,875.34 GJ
LPG 352,515.79 GJ 359,360.08 GJ 993,239.46 GJ
Residual gas 111,495,154.23 GJ 106,752,092.03 GJ 109,996,044.93 GJ
Other fuel oils¹ 10,071,490.71 GJ 9,785,137.24 GJ 11,741,717.92 GJ
Total 181,084,992.35 GJ 173,057,577.19 GJ 174,473,580.46 GJ
Renewable sources (GJ) 2018 2019 2020
Hydrogen 881,753.06 GJ 262,334.00 GJ 1,971.56 GJ
Total 881,753.06 GJ 262,334.00 GJ 1,971.56 GJ

¹ Other residual fuel oils: C10+, RAP, BTE, UNILEVE.

Energy consumption (purchased) (GJ) 2018 2019 2020
Renewable electricity 13,830,131.36 GJ 11,728,555.71 GJ 11,082,444.98 GJ
Non-renewable electricity 4,859,235.34 GJ 4,515,981.29 GJ 3,893,832.02 GJ
Steam 4,282,166.78 GJ 4,373,174.69 GJ 3,823,630.77 GJ
Total 22,971,533.49 GJ 20,617,711.69 GJ 18,799,907.77 GJ
Energy sold (GJ) 2018 2019 2020
Electricity 2,271,132.40 GJ 2,371,161.60 GJ 2,166,069.60 GJ
Steam 5,086.895.00 GJ 3,764,128.41 GJ 3,682,257.59 GJ
Total 7,358,027.40 GJ 6,135,290.01 GJ 5,848,327.19 GJ
Total energy consumption (GJ) 2018 2019 2020
Non-renewable fuel sources 181,084,992.35 GJ 173,057,577.19 GJ 174,473,580.46 GJ
Renewable fuel sources 881,753.06 GJ 262,334.00 GJ 1,971.56 GJ
Energy consumption 22,971,533.49 GJ 20,617,711.69 GJ 18,799,907.77 GJ
Energy sold 7,358,027.40 GJ 6,135,290.01 GJ 5,848,327.19 GJ
Total 197,580,252 GJ 187,802,333 GJ 187,427,133 GJ

GRI 302-3 Energy intensity

Indicator 2020 2019 2018
Energy consumption (GJ/t) 11.23 11.09 10.94

GRI 302-4 Reduction in energy consumption

Reduction in energy consumption achieved directly due to improvements in conservation and efficiency (GJ) 2020
Energy optimization in production processes (except furnaces and boilers) 2,338,627.68
Energy optimization in pyrolysis furnaces and process 315,224.11
Energy optimization in boilers 3,055.85
Total 2,656,907.65

SASB RT-CH-140 a.1 (1) Total water withdrawn (2) Total water consumed, percentage of each in regions with high or extremely high baseline water stress

(1) Total volume of collected water in all areas and stress areas, by source1 (mL) in 2020
Source All areas
Surface water (total) 13,843.99
Fresh water (≤1,000 mg/L of total dissolved solids) 10,420.78
Other water (>1,000 mg/L of total dissolved solids) 3,423.21
Underground water (total) 1,143.22
Fresh water (≤1,000 mg/L of total dissolved solids) 29.3
Other water (>1,000 mg/L of total dissolved solids) 1,113,92
Water from third parties (total) 55,818.71
Fresh water (≤1,000 mg/L of total dissolved solids) 55,818.71
Other water (>1,000 mg/L of total dissolved solids) 0
Total 70,805.91
(2) I. TOTAL WATER CONSUMED AND II. % OF EACH IN REGIONS WITH HIGH OR EXTREMELY HIGH BASELINE WATER STRESS 2020
Total water consumption (ML) 69,341
% FROM HIGH OR EXTREMELY HIGH WATER STRESS (%) 18.86

SASB RT-CH-140 a.2 Number of incidents of non-compliance associated with water quality permits, standards, and regulations

We were not able to consolidate this data globally for this reporting cycle. We have committed to improve the global management of this topic to report it in the next cycle (2021).

SASB RT-CH-140 a.3 Description of water management risks and discussion of strategies and practices to mitigate those risks

We have established annual eco-efficiency targets for water consumption and effluent generation per ton of products produced (m³/t) that are monitored monthly by the company's top management. In all units, effluent management is based on local legislation standards and internal procedures related to the characteristics of the operations in each region, including substances of interest and composition of the effluents. These substances and their respective limits are listed in the specific legislation of each country and/or region or in the operating licenses.

Our long-term goal is to ensure that all the water used by Braskem comes from sources with low-risk supply. Given the challenging global scenario - the climate risk assessment pointed out the risk of severe droughts as the greatest potential risk in Brazil. This diagnosis is the basis for the development of Braskem's Adaptation Plan which aims to mitigate availability risks as well as to promote that investments in safer sources of water such as reused and desalinated water take place.

The overall corporate water stress score rose from 75% in 2019 to 82.9% in 2020, with a total of 18.86% of our water consumption coming from areas with high or very high-water stress.

GRI 303-1 Interactions with water as a shared resource

The use of fresh water occurs throughout the production process of our operations. Among its main uses, being a very water-intensive industry (chemical / petrochemical), we highlight the use of fresh water for cooling systems and steam generation, consumption in processes and products and destination of effluents. Therefore, lack of water can affect operational costs and ultimately stop operations (dependence is high in the present and future scenarios), explaining why it is vital for operations. As Braskem is a chemical / petrochemical industry, a significant part of our suppliers makes similar use of water (e.g., cooling, steam), especially considering that Braskem's main raw material is petrochemical naphtha. Lack of water may affect / interrupt its operations (indirect use), explaining why the importance is vital, resulting in impacts also for Braskem, in current scenarios and until 2040, according to internal climate risk assessments. In areas of "water stress", reuse water is an alternative to maintain operations under normal conditions (mitigate / neutralize impacts) and avoid competition for fresh water. Its main use in Braskem's direct operations is throughout the production process. The main uses of reused water, being a very water intensive industry, are for cooling systems and steam generation, consumption in processes and products and disposal of effluents. Therefore, lack of water can affect operational costs and ultimately stop operations (dependence is high in the present and future scenarios), explaining why it is vital for operations. As Braskem is a chemical / petrochemical industry, a significant part of our suppliers makes similar use of reuse water (e.g. cooling, steam), especially considering that Braskem's main raw material is petrochemical naphtha. Water shortage may affect / interrupt its operations (indirect use), explaining why the importance is vital, resulting in impacts also for Braskem, in current scenarios and until 2040, according to internal climate risk assessments. Braskem measures and monitors 100% of the sites. The total volume of water withdrawal refers to the consumption of 41 industrial facilities located in Brazil (29), USA (6), Germany (2) and Mexico (4) measured monthly and registered in the SAP system. The volume is obtained through a meter inserted directly into the pipeline, which transports the water, taking the measurement and sending the result through a transmitter to the centralized control system. Monitored daily and consolidated monthly on site by HSE focal point.

GRI 303-2 Management of impacts related to water discharges

In all our units, effluent management is based on discharge standards defined according to local legislation and internal procedures. Some industrial plants also have laboratories capable of analyzing the effluents and creating internal standards for environmental quality evaluation.

We emphasize that each region where we operate is unique, so we respect its operating characteristics, including in relation to the substances of interest and the composition of the effluents. These substances and their respective limits are listed in the specific legislation of each country and/or region or in the operating licenses.

Braskem has internal documents that regulate the topic, such as the Work Instructions (IT), which address locally the management and monitoring of effluents in the company. At Braskem, the liquid effluents have four general destinations: discharge into bodies of surface water; discharge into the ocean; delivery to third parties; and sprinkling on the ground. For each one of the destinations, there are specific quality standards of the effluent released that take into consideration the receptor body. In the case of soil sprinkling, the effluent is treated internally by the SITEL - Integrated System for Treatment of Liquid Effluents. For effluents sent to third parties, monitoring of the effluent quality is done by the third-party company itself, which is responsible for the treatment and must maintain the effluent quality standards established - Braskem constantly monitors the results

GRI 303-3 Water taken

Total volume of collected water in all areas and stress areas, by source1 (mL) in 2020
Source All areas
Surface water (total) 13,843.99
Fresh water (≤1,000 mg/L of total dissolved solids) 10,420.78
Other water (>1,000 mg/L of total dissolved solids) 3,423.21
Underground water (total) 1,143.22
Fresh water (≤1,000 mg/L of total dissolved solids) 29.3
Other water (>1,000 mg/L of total dissolved solids) 1,113.92
Water from third parties (total) 55,818.71
Fresh water (≤1,000 mg/L of total dissolved solids) 55,818.71
Other water (>1,000 mg/L of total dissolved solids) 0
Total 70,805.91

¹ Data is sent annually by the industrial units and compiled by Corporate HSE.

GRI 303-4 Water/effluent disposal

Total disposal of collected water in all areas and stress areas, by source1 (mL) in 2020
Source All areas
Surface water 7,529
Sea water 7,837
Third party water 56
Ground sprinkling 4,250
Total 19,672

¹ Disposal limits are set in the conditions of operating licenses, based on current legislation and good practices. Data is sent annually by the industrial units and compiled by Corporate HSE.

GRI 303-5 Water consumption

2018 2019 2020
4.28 4.31 4.31

¹ Total water consumption was 69.341 megaliters. Optimization of the concentration cycles of cooling towers in some of the units, especially for Q1 BA and start-up of the backup osmosis in Q4 DCX, had a positive impact on the result.

SASB RT-CH-150a.1 Hazardous waste volume generated and recycled percentage

Hazardous waste Tons
Generation 17,349
Disposal – Total Recyclables 3,899
Recycled 1,553
Reuse (reutilization) 121
Composting 0
RRecovery (energy included) 2,225
% Recycled 22.48%

Generation and disposal indicator not necessarily follow each other. This is because shipping waste for processing requires specific planning involving total volume that will be disposed of and shipping logistics. Thus, waste can be generated in a given month but not necessarily will be disposed for processing in the same month.

SASB RT-CH-410a.1 Revenue from products designed for use-phase resource efficiency

Currently, Braskem has a portfolio of 120 innovation projects with a net present value (NPV) of approximately 8 billion reais, related to the themes, among them projects leveraged by the “Lighweight” platform, which seeks solutions with less weight in the product final for the packaging industry and the automotive sector, with the objective of contributing to a more sustainable world, with the reduction of waste generation and gas emissions. In addition, we also work with the concept of "Design for Environment", in which we combine our expertise in polymers and transformation processes with the consumer knowledge of brand owners to deliver an incredible experience with the least possible environmental impact. Aiming at more sustainable and circular packaging, we developed a design for environment methodology that uses Life Cycle Assessment to identify environmental hotspots throughout the product's life cycle. From this scientifically identified gap, the next step is to explore the consumer universe and its journey by maximizing attractiveness and usability. The ideation / prototyping / testing loop is repeated until we can combine sustainability, circularity and consumer experience in one product.

GRI 301-2 Recycled input materials used

Volume of post-consumer plastic waste used for the production of recycled content sales (t)
2018 2019 2020
BRA USA MEX EUR BRA USA MEX EUR BRA USA MEX EUR
107 0 0 0 1,113 666 0 0 2,646 1,598 838 212
TOTAL: 107 TOTAL: 1,779 TOTAL: 5,294

GRI 306-2 Management of significant impacts related to waste

Braskem has several initiatives to avoid waste generation, having as basic principle the compliance with the priority order: 1. non-generation; 2. reduction; 3. reuse; 4. waste treatment; 5. environmentally adequate destination of waste. Compliance with the order seeks to reduce waste treatment costs; achieve increasing eco-efficiency rates (Benchmark); and prevent environmental liabilities.

The industrial units have several initiatives, within the operational routine of each process. Among the measures taken, we can highlight Reverse logistics of packaging of inputs used in the processes themselves; Reuse of waste as inputs between plants (pallets); Sale of waste as raw material for other processes; Sending plastic scrap to the I'm Green project; Educational campaigns for the supply area, strengthening the commitment to reverse logistics of packaging; Educational campaigns: Selective collection for segregation, correct disposal, Circular economy, Recycling, I'm Green, Environment Week, Against waste, Resignify consumption and disposal, Metal scrap; Search for treatment alternatives to reduce sending waste to landfills.

We rely on operational support in waste management from third-party companies specialized in this area. The monitoring of the services provided is carried out by the Environment team of each industrial unit, assessing the data generated monthly and holding periodic monitoring meetings to update the actions agreed upon in each specific contract.

Several verifications are performed monthly in the management process: 1) After issuing the documentation in which the technician from the third company requests the signature of the Braskem HSE representative; 2) When the Braskem engineer makes the monthly eco-indicator justification; 3) In the Waste Transportation Manifest reports (in Brazil); 4) In Measuring Bulletins or Audits conference (internal and external), in which the waste management process is evaluated; 5) Several reports.

GRI 306-3 Waste generated

In 2020, our eco-efficiency in waste generation was 2.23 kg/t, 1.23% above the value of the previous year, but 9.79% below the target set for the year. The generation of non-hazardous waste was 18,543.18t and that of hazardous waste 17,349.48t, in total of 35,892.66t. Among the negative highlights are the increase in generation due to the implementation of the Delta Project at PP8, the disposal of metal scrap and the decommissioning process of operations in Bahia and the disposal of the contaminated liquid additive and mineral oil in Rio Grande do Sul.

GRI 306-4 Waste not for disposal

Total waste NOT intended for final disposal per recovery operation in 2020¹
In metric tons (t) 2020
Hazardous waste Within the organization/ onsite Outside the organization/ offsite Total
Recycled - 1,552.72 1,552.72
Reuse (reutilization) 0.33 120.96 121.29
Recovery (energy included) 590.25 1,635.03 2,225.29
Temporary internal storage 841.23 0.10 841.33
Total 1,431.82 3,308.81 4,740.63
Non-hazardous waste Within the organization/ onsite Outside the organization/ offsite Total
Recycled - 14,541.70 14,541.70
Reuse (reutilization) - 163.56 163.56
Composting - 583.21 583.21
Recovery (energy included) - 3,615.53 3,615.53
Temporary internal storage 202.78 5.35 208.13
Total 202.78 18,909.34 19,112.12
Total waste not intended for final disposal 1,634.60 22,218.15 23,852.75

¹ Indicator revision in 2020, as a result data from previous years not included.

GRI 306-5 Waste for disposal

Total waste intended for final disposal by composition in 2020¹
In metric tons (t) 2020
Composition Quantity not intended for final disposal (t)
Category A – Hazardous 14,399.09
Category B – Non-hazardous 10,778.46
Total 25,177.55

¹ Indicator revision in 2020, as a result data from previous years not included.

SASB RT-CH-410b.1 (1) Percentage of products that contain Globally Harmonized System of Classification and Labeling of Chemicals (GHS) Category 1 and 2 Health and Environmental Hazardous Substances, (2) percentage of such products that have undergone a hazard assessment

(1) 2.7% of Braskem products contain CMR substances
(2) all products have been assessed for hazards based on GHS or other classification criteria for the creation of the safety data sheet

SASB RT-CH-410b.2 Discussion of strategy to (1) manage chemicals of concern and (2) develop alternatives with reduced human and/or environmental impact

At Braskem, we consider product stewardship to be an integrated part of product design, manufacturing, marketing, distribution, use, recycling and disposal. According to our Health, Safety and Environment (HSE) Policy, countries and companies must establish responsibility for the stewardship of their respective products. Our product stewardship practice aims to assess and mitigate exposure risks and manage chemicals of concern. Our Product Stewardship approach follows three main steps: i. hazard characterization; ii. management risk characterization; and iii. stewardship risk management. To establish, implement and maintain business processes that effectively implement product stewardship and product regulatory processes, Braskem focuses on three main objectives: - Ensure product management and product regulatory processes are established reflecting HSE aspects and impacts to ensure regulatory compliance and avoid losses or undesirable outcomes; - Ensure product management and product regulatory processes and/or requirements are established and communicated at all stages of manufacturing, product value chain, logistics and distribution operations. - Ensure that product stewardship and product regulatory processes and/or requirements are established for Braskem.

SASB RT-CH-410c.1 Percentage of products by revenue that contain genetically modified organisms (GMOs)

Braskem does not use or have GMOs in its products to date that would be subject to such legislation.

SASB 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

Our business and operations are inherently subject to environmental, health and safety hazards. As a result, our business is subject to strict environmental regulations, among others. Despite our environmental, health and safety standards, policies and controls, our operations continue to be subject to incidents or accidents that could adversely affect our business or reputation, which could result in significant environmental and social impacts. Accordingly, we conduct a continuous assessment of the potential impacts arising from the industrial operation and monitor each of the potential scenarios that may affect the environment and the surrounding communities together with the Board of Directors.

SASB RT-CH-540a.2 Number of transport incidents

In 2020, there were 71 accidents, at a rate of 1.8 accidents per 10,000 trips, a reduction of 28% of serious events, compared to 2019. The unified Road Safety management helped in the reduction, providing a more solid process with a more encompassing and deep view of these operations. The same controls and processes adopted for hazardous cargoes were implemented for non-hazardous cargoes. Initiatives such as the Road Safety Committee, Human Reliability in Logistics Journey, Guided Workshops and process digitization emphasize the commitment with operational safety and social responsibility. In Maritime Safety, the Vetting process remains as a global market benchmark.

GRI 417-1 Product and service information and labeling requirements

Labelling information follows the SDS information (GHS format) and is handled by each site. The internal procedure used is ANX 6020-00840 - Information on chemical hazards. All significant product categories are evaluated and audited by Braskem.

GRI 307-1 Non-compliance with environmental laws and regulations

Infractions involving cash penalties or not were considered for the period from 01/01/2020 to 12/31/2020, with no cut-off value. Fines paid: BRL 42,637.61. Fines received, with appeal possible or not: BRL 495,358.55

GRI 304-1 Owned, leased or managed operational units within or in the vicinity of protected areas and other areas of high biodiversity value located outside protected areas

Braskem has an environmental protection area adjacent to its Chlorine/Soda operation in Alagoas (CS1 AL), the Santa Rita APA [Área de Proteção Ambiental (Environmental Protection Area)] comprised of 100% Atlantic Forest (93% of Open Rain Forest).

GRI 304-2 Significant impacts of activities, products and services on biodiversity

In 2020, there were no significant impacts on biodiversity.

GRI 304-3 Protected or restored habitats

 

Benjamín Conservation Area, in Mexico with 1 km², located at 2.4 km from the operation. Environmental activities are developed by biologists in partnership with NGOs in reforestation programs.

Alagoas Green Belt, in Brazil, with 0.20 km² (latitude 09 40 57.0 S longitude 35 49 32.0 W). Contracted companies carry out site management and conduct cleaning and care of animals.

 

GRI 308-1 New Suppliers that were screened using environmental criteria

Less than 1% of new suppliers selected based on this criteria.

GRI 301-1 Materials used by weight or volume

Materials used in production and packaging
Name of material Used for product manufacturing and packaging Renewable/ non-renewable material Measurement unit 2020
Ethylene Final product Non-renewable KG 3,811,494,515
Propylene Final product Non-renewable KG 4,286,678,262
Hexene Final product Non-renewable KG 30,978,683
Vinyl acetate Final product Non-renewable KG 13,636,692
Propane Final product Non-renewable KG 160,321
Octene Final product Non-renewable KG 677,087
Refinery gas (LRG) Final product Non-renewable KG 260,194,160
Naphtha Final product Non-renewable KG 8,135,162,333
Gross condensed Final product Non-renewable KG 546,535,778
Ethane Final product Non-renewable TO 1,419,373
Ethanol Final product Renewable L 504,576,389
Green Ethylene Final product Renewable KG 179,351,557
Butene Final product Non-renewable KG 44,076,478
Dichloroethane (DCE) Final product Non-renewable KG 15,323,498
Vinyl chloride (MVC) Final product Non-renewable KG 453,241,413

RT-CH-000.A Production by reportable segment

Capacity, production volume and utilization rates 2020 (KT / year)
Industrial Unit Production capacity (kta) Production volume (kta)* Use rate (%)
Brazil (chemicals and specialties) 9,468 7,636 81%
Brazil (Green ethylene) 200 175 88%
Brazil (PE) 3,055 2,572 84%
Brazil (PP) 1,850 1,569 85%
Brazil (PVC) 710 449 63%
Brazil (caustic soda)* 460 9 2%
Brasil (chlorine)* 400 6 2%
Brasil (EDC) 520 0 0%
United States (PP) 2,020 1,547 77%
Germany (PP) 625 493 79%
Mexico (ethylene) 1,050 787 75%
Mexico (PE) 1,050 780 74%
TOTAL 21,408 16,023 75%

*This production volume refers to the production portion of marketable finished products; excluding finished products with internal destination for our own production processes. In order to calculate the eco-indicators in this report, we consider the total production value, including production with internal destinations. This total production value is 16,092,170 tons.

**Closing of the chlorine-soda plant activities in Bahia, due to the end of the useful life of this unit.

GRI 201-1 Value Added Statement (VAS)

  2018 2019 2020
Revenue (BRL thousand) 68,923,212 68,923,212 62,583,342
Sale of goods, products and services (BRL thousand) 68,255,566 62,059,664 69,310,281
Other (expenses) revenue, net (BRL thousand) 567,793 (2,08,593) (6,671,687)
Provision for bad debt (BRL thousand) 99,853 (7,069) (55,252)
Inputs acquired from third parties (BRL thousand) (51,627,620) (50,638,127) (50,595,564)
Cost of products, goods and services sold (BRL thousand) (48,993,132) (47,587,989) (48,491,403)
Materials, energy, third party services and other (BRL thousand) (2,574,232) (2,677,752) (2,045,497)
Asset value loss/recovery (BRL thousand) (60,256) (372,386) (58,664)
Gross value added (BRL thousand) 17,295,592 9,395,875 11,987,778
Depreciation, amortization and exhaustion (BRL thousand) (2,990,577) (3,632,265) (4,048,081)
Net value added produced by the entity (BRL thousand) 14,305,015 5,763,610 7,939,697
Value added received through transfers (BRL thousand) 1,856,981 1,202,836 1,659,436
Result from equity holdings (BRL thousand) (888) 10,218 (19,398)
Financial Revenue (BRL thousand) 1,857,793 1,196,535 1,678,210
Other (BRL thousand) 76 83 624
Total added value for distribution (BRL thousand) 16,161,996 6,970,446 9,599,133
Personnel (BRL thousand) 1,565,468 1,693,827 1,843,686
Direct compensation (BRL thousand) 1,239,606 1,316,668 1,483,995
Benefits (BRL thousand) 263,294 293,156 283,564
FGTS (BRL thousand) 61,241 84,003 76,127
Taxes, fees and contributions (BRL thousand) 4,925,801 1,954,184 3,116,561
Federal (BRL thousand) 2,235,453 (402,790) (433,618)
State (BRL thousand) 2,639,015 2,307,732 3,486,589
Municipal (BRL thousand) 51,333 49,242 63,590
Return on third party interest (BRL thousand) 6,763,517 6,219,408 11,628,169
Financial expenses (includes foreign exchange rate variation) (BRL thousand) 6,495,041 5,922,853 11,244,717
Rent (BRL thousand) 268,476 296,555 383,452
Return on own funds (BRL thousand) 2,907,210 (2,896,973) (6,989,283)
Net profit (loss) in fiscal year (BRL thousand) 2,866,675 (2,797,570) (6,620,651)
Dividends - - -
Non-controlling shareholders’ participation in controlled companies (BRL thousand) 40,535 (99,403) (368,632)
Results from discontinued operations - - -
Total added value distributed (BRL thousand) 16,161,996 6,970,446 9,599,133

GRI 201-2 Report risks and opportunities arising from climate change that have the potential to generate substantial changes in operations, revenues, or expenses.

Classification Risks Opportunities
i. description of the risk or opportunity and its classification: physical, regulatory or other. Current Regulation: Current regulatory risks are considered in complying with local policies on climate-related issues, such as the National Policy on Climate Change in Brazil, Carbon Tax on Fossil Fuel Use in Mexico, and the European Trading System (EU ETS) for our operations in Germany.
Emerging Regulation: Braskem considers the possibility of implementing economic instruments for carbon pricing in the countries where it operates (Brazil, USA, Germany, and Mexico) in the future.
Development of new products or services through R&D and innovation
Increased revenue from increased demand for products and services. Specific description of the company
For the Brazilian regions where Braskem operates, such as Northeast, Southeast, and South, the INPE models indicate that by 2040, the average precipitation in summer may be reduced to 2.3 mm / day in the RCP 4.5 scenario and 3.7 mm / day in the RCP 8.5 scenario, in relation to historical data (1960 to 2005). Some Brazilian states already face water scarcity. In Brazil, approximately 65% of electricity is generated from hydraulic sources, therefore, the reduction in water availability has a direct impact on electricity generation, which can cause shortage and/or rationing of electricity. The eventual reduction in the availability of electric power in Brazil will stimulate the development and search for new products that reduce this consumption. Today Braskem has a line of resins called Maxio®, a seal that identifies PE, PP or EVA resins with lower energy consumption in their applications. Energy consumption is reduced through lower processing temperature and shorter cooling time. Studies indicate a minimum energy reduction of 9%. In this case, the environmental impact is indirect, resulting from the energy savings for Braskem customers who purchase products with this profile.
Value of potential financial impact 590,000,000 The financial impact refers to the increase in Braskem's revenue due to the increase in sales of products and services that cause lower GHG emissions.
ii. description of the impact associated with the risk or opportunity (e.g. the impact of more frequent and intense storms; changes in sea level, ambient temperature and water availability; impacts on workers - such as health effects, including heat-related illness or disease; the need to reposition operations; availability of new technologies, products or services to meet climate change challenges, as well as changes in customer behaviour); This risk occurs in direct operations. Type: emerging carbon revaluation and pricing mechanisms. Primary potential financial impact: Increase in indirect (operational) costs. Description: According to the Paris Agreement, Brazil (where Braskem has 29 industrial units, out of 41 in operation) is committed to a 37% reduction in emissions by 2025 and a 43% reduction by 2030 compared to 2005 levels. While the largest reduction is related to deforestation activities, it is possible for the Government to introduce a pricing mechanism to ensure reductions in industry and other energy intensive sectors. Options include cap-and-trade mechanics or carbon taxation. In the second case, there is a significant risk to Braskem of increasing operating costs as we are a carbon intensive industry. As Braskem is a large emitter of GHG in Brazil, having its largest emitting units in Bahia (Q1-BA), Rio Grande do Sul (Q2-RS) and São Paulo (Q3-ABC), which are the plants responsible to produce basic petrochemicals, setting a target that could be difficult to meet given the nature of the business, could directly affect Braskem and could result in fines. Furthermore, but not less important, in the state of Rio de Janeiro, Brazil, there is already a legal requirement that imposes the presentation of GHG emissions and mitigation plan to obtain or renew the operating license. Therefore, the reduction of emissions can be a decisive factor for the renewal or not of an operation license.
iii. financial implications of the risk or opportunity before action is taken;
iv. methods used to manage the risk or opportunity (carbon capture and storage; fuel switching; use of renewable and low carbon energy; improving energy efficiency; flaring, venting and reduction of fugitive emissions; renewable energy certificates; use of carbon offsets). Since 2018, we have invested in expansion, construction, and improvements to several of our laboratories and pilot plants. With this, we expect to have even more versatility and capacity for innovation in our products and services.
In Triunfo (Brazil), we started the construction of a new 2,800 m² building for the expansion of the laboratory. With an investment of $50 million (including equipment), the challenge of the new building is to encourage innovation even before it is built. The team responsible for the project identified more than 30 applications of plastic in construction, with solutions that consider the economy, durability, strength and versatility of the materials.
In 2018, we built a pilot fermentation plant at the Renewable Chemicals Research Centre (RC) located in Campinas (Brazil), which will allow us to advance our renewable chemicals projects and develop new products and processes. These projects are closely related to the circular economy proposition at the beginning of the value chain, seeking to develop products that contribute to CO2 capture.
We have also established a new operation in Boston (United States), focused on research, development and commercialization of chemicals and materials from renewable sources. Choosing this location helps us take advantage of the region's advances in biotechnology and advanced materials. Activities include research and development in biotechnology and materials science, business and market development and technology sourcing for strategic partnerships.
In 2019, our MEG (monoethylene glycol) development project, together with Haldor Topsoe, a world leader in catalysts and technology for the chemical and refining industries, continues.
v. financial costs to manage the risk or opportunity 300,000.00;The costs are related to the activities of preparing and ensuring the GHG emissions inventory, as well as identifying new initiatives. Cost to realize the opportunity: 50,400,000. Strategy to realize the opportunity and explanation of the cost calculation.
Braskem invests in research and development of products that reduce electricity consumption during use.
The cost of this opportunity refers to: 22% of investments in laboratories and technology and innovation centers and 78% underway in research in renewable energy and others.
 
2.3 Report the following additional characteristics for the identified risks and opportunities:
Classification Risks Opportunities
2.3.1 description of the risk or opportunity driver, such as specific legislation, or a physical driver, such as water scarcity. Company-level analysis:
Braskem initially hired specialized consultants to identify physical and regulatory risks and opportunities (with support from internal teams) with potential impact on 100% of its industrial operations, with a view to the present and future (2040). The analysis was conducted cooperatively, considering INPE climate models and IPCC scenarios up to 2040, identifying the impacts and vulnerabilities of our operations.
Every 5 years, these studies will be updated to reassess scenarios and residual risks and maximise opportunities. For risks and opportunities associated with the value chain, Braskem uses the CDP Supply Chain to identify these risks and opportunities. Braskem has also analyzed the reputational risks at the company level.
2.3.2 expected timeline in which the risk or opportunity is expected to have substantial financial implications; As the studies and assessments carried out had the horizon up to 2040, this is the expected timeframe for the potential opportunities and risks to materialise in their entirety.
2.3.3 direct and indirect impacts (whether the impact directly affects the organization or indirectly affects the organization through its value chain); Direct impacts are associated with the possibility of temporary interruptions of some operations and or sporadic cost increases. Some risk scenarios are reflected in the chain, mainly physical risks, such as severe droughts and extra tropical cyclones and hurricanes.
2.3.4 the potential impacts generally, including increase or decrease in:  
2.3.4.1 capital and operating costs; Potential impacts associated with momentary interruptions due to potential water scarcity scenarios can be cited. Not applicable. Opportunities increase costs which are offset by increased revenues.
2.3.4.2 demands for products and services; Potential impacts on fossil resin demands due to the market potentially seeking greener products. Potential positive impact related to increased product demand for low carbon products such as green PE.
2.3.4.3 availability of capital and investment opportunities. Not applicable. Potential positive impacts from investments, through our technology and innovation laboratories, in the development of product portfolios based on renewable raw materials.
2.3.5 likelihood (the probability of impact on the organisation); The probability of impact exists, but it is being mitigated by some processes being implemented, such as carbon pricing in the investment decision-making processes.
2.3.6 magnitude of impact (if any, to what extent the impact financially affects the organisation) From the risk point of view it is low, because Braskem has been adapting itself, and we understand that the magnitude will be lower than the competitors'. Potential magnitude of positive impact high if we consider the expansion of the market for products of renewable origin.

GRI 201-4 Financial assistance received from the government

Government support 2018 2019 2020
Total incentives and credits* 81.9 77.0 76.3
PRODESIN [Programa de Desenvolvimento Integrado do Estado de Alagoas (Integrated Development Program of the State of Alagoas)] – ICMS [Imposto sobre Circulação de Mercadorias e Serviços (Tax on Goods and Services Sold)] (BRL million) 81.9 67.8 68.8
SUDENE [Superintendência do Desenvolvimento do Nordeste (Northeast Development Superintendence)] – IR [Imposto de Renda (Income Tax)] (BRL million) -- -- --
REINTEGRA [Regime Especial de Reintegração de Valores Tributários para as Empresas Exportadoras (Special Regime for Reintegrating Tax Values for Exporting Companies)] (BRL million) -- 9.2 7.4
Total grants (BRL million) -- -- --
Grant – Brazilian Agencies (BRL million) -- -- --
Total Financing (BRL million) 1,732.1 964.6 1,538.2
Financing – Brazilian Government Agencies 0.45 266.4 209.6
Financing – Foreign Government Agencies – ECAs (BRL million)** 1,731.7 698.2 1,328.6

CSA 2.3.1 Capital investments, expenses, cost savings and avoidance from environmental investments

Capital investments, expenses, cost savings and avoidance from environmental investments
R$ MM 2017 2018 2019 2020
Capital Investments 13.1 10.2 7.3 10.6
Operating Expenses 317 343.2 362.5 527.3
Cost Avoidance 1207.9 835.6 910.2 159.6
 

GRI 205-1 Operations assessed for risks related to corruption

100% of our Braskem operations have been subjected to corruption-related risk assessments.

GRI 205-2 Communication and training on policies and procedures for fighting corruption

Total number and percentage of team members who received communication and training on anti-corruption policies and procedures
By country 2020
Communications Qualified
Brazil 6,088 5,742
100% 94.32%
United States 764 672
100% 87.96%
Germany 151 147
100% 97.35%
Mexico 831 777
100% 93.50%
Total 7,993 7,474
100% 93.51%
Team members who were communicated and received training on anti-corruption policies and procedures
2020
Functional category Communications Qualified
Operational/ technical Number 5.187 4.882
Percentage 100% 94.12%
Administrative Number 1,917 1,760
Percentage 100% 91.81%
Leadership Number 889 832
Percentage 100% 93.59%
Total Number 7,993 7,474
Percentage 100% 93.51%

GRI 205-3 Confirmed incidents of corruption and actions taken

There were no confirmed cases of corruption in 2020.

GRI 206-1 Legal actions for anti-competitive behavior anti-trust, and monopoly practices

There were no legal actions lodged for these reasons in 2020.

GRI 415-1 Political contributions

N/A – Donations to political campaigns are prohibited in Brazil, according to interpretation issued by the Federal Supreme Court in the sentence in ADI [Ação Direta de Inconstitucionalidade (Direct Unconstitutionality Action)] 4650/2015 about Article no. 81 of Law no. 9.504/1997, later repealed by Law no. 13.165/2015.

GRI 419-1 Non-compliance with laws and regulation in the social and economic area

Braskem has processes in the mentioned period, whether environmental or regulatory. However, the company does not have final decisions on significant fines during the period in question. This report adopted the same criterion used in the “Reference Form” introduced by the Brazilian “Securities and Exchange Commission” (Comissão de Valores Mobiliários, CVM), pursuant to CVM Instruction 480/209 – BRL 50 million