From sugarcane to bio-based plastics. Check how Braskem guarantees a responsible, transparent, and compliant ethanol supplier management chain.

Braskem's I'm green ^TM bio-based plastic is made from sugarcane, a renewable feedstock. Braskem's suppliers derive ethanol from Brazilian sugarcane which is then converted into polyethylene. To ensure and uphold its commitment to ethics, compliance, and transparency, Braskem developed their Responsible Sourcing Ethanol Program, which has been in force since 2010, which instills checks and balances into the ethanol supply chain.

Braskem's program for purchasing ethanol is supported by two pillars: Compliance and Excellence. The Compliance Pillar includes the Braskem Supplier Code of Conduct. This establishes the operational standards expected from suppliers in their management of human resources, the environment, local communities, quality, and efficiency. The Excellence Pillar goes further, and includes the Continuous Improvement Program which focuses on incentivizing the sugarcane production chain to continually push for better outcomes on activities of relevance to the ethanol chain.
 

Compliance pillar: establishing operational standards and monitoring violations

The Braskem Supplier Code of Conduct was drafted specifically for the ethanol chain. It establishes the operational standards required to be a Braskem partner regarding business integrity, environment, workers and communities and sugarcane supplier management. A few examples of important standards within these topics are:

Business Integrity
Ethanol suppliers are expected to conduct their activities with strict legal compliance and respect for human rights, the environment and society's ethical standards. This encompasses complying with all applicable laws and complying with the highest standards of honesty and integrity. This can be demonstrated for example by registrations and permits, verification of the mill's internal policies and codes of conduct, or checklists containing indicators related to treaties and conventions.

Environment
Ethanol suppliers must comply with environmental laws and regulations, demonstrated by verifying licenses and permits. For example, suppliers may not plant sugarcane on protected areas, may only use approved pesticides and may not burn sugarcane fields. They must also seek to reduce their environmental impact through planned, measured and reviewed environmental management, identifying risks and communicating incidents.

Workers and Communities
Suppliers must respect human rights and share Braskem's labor principles and values regarding supplier relations, harassment, discrimination, wages and benefits and health and safety. To Braskem, safety is a critical value that must guide all attitudes, conduct and decisions in day-to-day activities. People are central to Braskem's business operations, therefore, caring for their safety and well-being will always be paramount.

Sugarcane supplier management
Ethanol suppliers should have a supplier management program through which they formalize their relations with their supplier base, promote actions to ensure social and environmental practices and conduct monitoring actions.

Braskem monitors the development and performance of its ethanol suppliers. Complying with the provisions in the Compliance Pillar are mandatory, and when any non-compliance is found, an action plan is set up immediately with follow-up meetings are established to monitor whether necessary improvements are being made.
 

Excellence Pillar: strengthening the chain

Braskem established indicators to support its ethanol suppliers in the pursuit of continuous improvement. For topics of relevance to the ethanol chain, excellence levels are classified. An external professional evaluates the supplier and records which excellence practices are adopted. They do not represent required conduct, so a supplier failing to classify for a level does not compromise their evaluation under the Compliance Pillar. Rather, they indicate the parameters desired for strengthening the chain.

Parameters are established for the environment, workers and community, sugarcane supplier management and quality and efficiency. Regarding the environment, it is encouraged for suppliers to adopt a proactive management of natural areas to improve their quality in addition to complying with legal requirements, for example, conducting biodiversity studies. The full list of indicators can be found here in the Responsible Ethanol Sourcing Program .
 

Learning more?

Central in both of the pillars is audit and follow-up by Braskem. This way, Braskem ensures responsible and reliable ethanol sourcing. Interested in learning more? Read our full Responsible Ethanol Sourcing Program here .