Human Rights

Our Commitment

We understand that our activities might have both positive and negative impacts on human rights. These impacts could occur in our own operations, in the surrounding communities, along our value chains or in society as a whole.

We are committed to respecting human rights, and we adopt measures to identify, prevent, mitigate and, if necessary, remediate any human rights violations with which we may be involved either through our own activities or as a result of our business relationships1.

Human rights are basic rights inherent to all human beings, regardless of gender identity, sexual orientation, race, nationality, social class, religion, physical characteristics or any other condition. These include the right to life and freedom, freedom of opinion and expression, the right to work and education, the right to well-being, among many others2. Our commitment is aligned with the United Nations (UN) Guiding Principles on Business and Human Rights and encompasses all internationally recognized human rights contained in the International Bill of Human Rights (consisting of the Universal Declaration of Human, the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social and Cultural Rights) and in the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work3.

We consider internationally recognized human rights as the foundation of our sustainable development strategy and uphold them in our business activities, including in joint ventures and the value chain. The Global Sustainable Development Policy , approved by the Board of Directors, reinforces this commitment and outlines the behavior expected and the responsibilities of our members and business partners in order to continuously and proactively identify, prevent and mitigate exposure to the risks of violation of human rights, as well as to remedy the current impacts of its operations, products, services or commercial relations. This topic is also reflected and provided for in the Code of Conduct and the Code of Conduct for Third Parties .

As a signatory to the UN Global Compact, since 2007 Braskem has been committed to its Ten Principles, related to human rights, labor, environment and anti-corruption. Since 2016 we have been dedicating more attention to this issue, with the implementation of the UN Guiding Principles. In order to prevent and address eventual negative impacts on human rights, we have adopted a human rights risks management, which include the identification, assessment and prioritization of human rights risks, and the construction, implementation and monitoring of mitigation action plans for those risks.

In compliance with our commitment with transparency, we also report our work on human rights in our Annual Reports .

1 We are also engaged in supporting and promoting human rights, and we do this by increasing our positive social, environmental and economic impacts, in particular through our social investments. Learn more about our social investments in https://www.braskem.com.br/communities and in our Annual Reports .

2 https://www.un.org/en/sections/issues-depth/human-rights/

3 These include the International Labor Organization Conventions that are relevant to our business and ratified by the countries where we operate.

Braskem’s first human rights due diligence started in 2016 and resulted in the first Human Rights Violation Risk Matrix in 2017, where we identified all possible risks involving our business enterprise. We had the support of an independent external human rights expert in this process, which involved the review of documents4 and the consultation of relevant stakeholders, such as leaders and specialist of various teams in Braskem, clients, suppliers and associations. Learn more about this process .

Sector Benchmark

Description:

Analysis of petrochemical companies are working on Human Rights.

Consultation Process:
  • Companies analyzed: 17
  • Secondary Research

Evaluation of Impact
and Due Diligence

Description:
  1. Identification of risks and violation of human rights in operations, products or services of Braskem and its chain, as well as holders of these rights.
  2. Analysis of how Braskem identifies, prevents and mitigates risks of itself and of its chain.
Consultation Process:
  • Secondary research
  • Interview with Braskem team: 54 leaders and experts from HR, HES, Procurement, Legal, Corporate Governance, Compliance etc.;
  • Interview with partners: 14 leaders and experts from Clients, Suppliers and Associations;
  • Review of over 100 documents: Among these, Braskem evaluated the 2016 Image and Reputation Survey, which had 5,190 online responses from Team Members, Clients, Suppliers, Scholars, NGOs, Local Communities, Trade Associations, Government, Media and the General Public.

Analysis of Gaps and Recommendations

Description:

Analysis of how Braskem’s current policies and processes enable it to effectively protect and promote human rights, as well as final recommendations.

Consultation Process:
  • Review of data collected in the previous two phases based on the UN Guiding Principles on Business and Human Rights;
  • Analysis made by third party (BSR/Rever Consulting).

4 Among them, the Study on Image and Reputation carried out in 2016 consolidated 5,190 responses from members, clients, suppliers, academia, non-governmental organizations, local communities, business associations, government, press and the final consumers.

As a result, we identified 17 risks of human rights violations related to our own operations, products or services and the main risks related to our value chains. We also identified the respective impacted right-holders: team members and contractors who work at Braskem's facilities, workers in the value chain (particularly those working in small businesses and rural areas, third- or fourth-party truck drivers and collectors), consumers and local communities (including traditional peoples, such as indigenous people, fisher communities and quilombola communities), and society as a whole.

To ensure an integrated enterprise risk management, Braskem included the risks of violation of human rights in the Corporate Risks Matrix, which is monitored by the Board of Directors and by Senior Management. In addition, the risks included in the corporate matrix are reassessed every two years. This ensures a periodic and systematic review of risks and opportunities in human rights. This assessment will also be reinforced in the process of reviewing Braskem's Materiality Matrix, which evaluates the relevance of sustainability topics based on a survey among stakeholders to devise the company's strategy to contribute to sustainable development.

Below, the Human Rights Violation Risk Matrix presents the 17 risks identified and classified based on the severity, extension and probability of the impact, as well as the company’s control and influence over these risks. The targets of Braskem’s Sustainable Development macro goals contribute to Human Rights and, hence, were correlated to the risks. Learn about Braskem’s macro goals here . The following image shows the value chain where each of these risks may occur under Braskem’s priority attention viewpoint. Note that those related to safety, health and environment (including post-consumption) are common to any industry.

Importance (Severity, Extension, Remediability, Probability)

High High Low 1 3 2 4 5 6 10 7 8 9 11 12 13 14 15 16 17
Empowerment (Responsibility, Power of Change, History of Occurrences, Risk Management)
X

1st Focus (Potential Risks with the need to improve management)

1. Dignity and Diversity (MG Strengthening of Practices)

2. Ethics and Transparency at Braskem (MG Strengthening of Practices)

3. Traditional Peoples (MG Local Development)

4. Decent Work in Value Chain (MG Strengthening of Practices)

5. Post-Consumption (MG Post-Consumption)

X

2nd Focus (Controlled Risks with continuous improvement in progress)

6. Consumer Health and Safety – Resins (MGs Safety and Development of Solutions)

7. Consumer Health and Safety – Petrochemicals (MGs Safety and Development of Solutions)

8. Safety in Surrounding Communities (MG Strengthening of Practices)

9. Safe Work in Value Chain (MG Safety)

10. Work and Career Conditions in Value Chain (MG Strengthening of Practices)

11. Ethics and Transparency in Value Chain (MG Strengthening of Practices)

X

3rd Focus (Residual Risks with consolidated management)

12. Work and Career Conditions at Braskem (MG Strengthening of Practices)

13. Process Safety (MG Safety)

14. Healthy Environment (MGs Renewable Resources, Water Efficiency, Climate Change, Energy Efficiency and Solution Development)

15. Occupational Health and Safety (MG Safety)

16. Property Security (MG Strengthening of Practices)

17. Private Property (MG Local Development)

1. Dignity and Diversity (MG Strengthening of Practices)

2. Ethics and Transparency at Braskem (MG Strengthening of Practices)

3. Traditional Peoples (MG Local Development)

4. Decent Work in Value Chain (MG Strengthening of Practices)

5. Post-Consumption (MG Post-Consumption)

6. Consumer Health and Safety – Resins (MGs Safety and Development of Solutions)

7. Consumer Health and Safety – Petrochemicals (MGs Safety and Development of Solutions)

8. Safety in Surrounding Communities (MG Strengthening of Practices)

9. Safe Work in Value Chain (MG Safety)

10. Work and Career Conditions in Value Chain (MG Strengthening of Practices)

11. Ethics and Transparency in Value Chain (MG Strengthening of Practices)

12. Work and Career Conditions at Braskem (MG Strengthening of Practices)

13. Process Safety (MG Safety)

14. Healthy Environment (MGs Renewable Resources, Water Efficiency, Climate Change, Energy Efficiency and Solution Development)

15. Occupational Health and Safety (MG Safety)

16. Property Security (MG Strengthening of Practices)

17. Private Property (MG Local Development)

fluxograma

The Human Rights Violation Risk Matrix defined Braskem’s operational priority by identifying five potential risks with need for management improvement (called focus 1 risks):

  1. Dignity and Diversity
  2. Ethics and Transparency
  3. Traditional Peoples
  4. Decent Work in the Value Chain
  5. Post-Consumption

The other risks were classified as controlled risks with continuous progress improvement (focus 2 risks) or residual risks with consolidated management (focus 3 risks). Some of the risks assessed as high risks were classified as focus 3 because they have excellent consolidated management.

Focusing on the 5 priority risks, we prepared action plans to reduce their probability or associated impacts. Below, we detail each of them, as well as the most recent results and actions for their mitigation.

Risk description

  • Risk of discrimination on the basis of gender, race, sexual orientation and gender identity, disability, socioeconomic status, among other criteria;
  • Risk of discrimination against contractors;
  • Risk of occurrence of moral and sexual harassment.

Right-holders

  • Members;
  • Contractors.

Risk location

  • Own operations.

2018 Highlights and Actions

  • More than 500 leaders trained in Diversity;
  • Increase of 2% of women in leadership positions (27%) and increase of 1% of women in total workforce (23%);
  • Increase of 1% of black people in leadership positions (10%);
  • Creation of an Affinity network for LGBTQIA+ Members;
  • The Excelence Out and Equal Award won for our actions to promote the inclusion of LGBTQIA+ people;
  • Braskem Forum on Diversity and Inclusion, where approximately 500 Members participated;
  • The second Diversity and Inclusion Week, with the topic “Empathy” took place;
  • First year of advancing the local diversity strategy in the United States, with the formation of a committee dedicated to the topic and training sessions conducted at all sites;
  • Launch of a guide for our members on how to communicate while respecting gender, sexual orientation, race, ethnicity, origin, physical or mental condition, religion, education, and other characteristics that enrich diversity within Braskem and society;
  • BeUx: a new Value Proposition for our people management model, that includes a more flexible workplace, the integration and sharing of spaces, and the promotion and appreciation of diversity;
  • Conclusion of an assessment study on the work conditions and equal treatment of contractors in the workplace;
  • Conclusion of a benchmark study on the corporate practices to address harassment and discrimination in the workplace.

2017 Highlights and Actions

  • Increase of 2% of women in leadership positions (25%) and inclusion of 1 sitting director on the Board of Directors;
  • 99% of members trained in the revised Code of Conduct;
  • Drafting of Disciplinary Measures Directive;
  • 600 members trained in unconscientious bias/empathy and 90 engaged as volunteers;
  • 100% of People & Organization teams trained and 6,500 employees participated in awareness raising on Diversity;
  • 6 workplaces renovated to ensure better working conditions for 14 fixed outsourced workers and some 50 rotating outsourced workers (Chemical Logistics).

Risk description

  • Risk of fraud or corruption;
  • Risk of misconduct related to gift, credit card, expenses reimbursement and data privacy.

Right-holders

  • Members;
  • Contractors.

Risk location

  • Own operations;
  • Value chains.

2018 Highlights and Actions

  • Solid team: 37 Members from five different nationalities, 10 more than in 2017;
  • 8,275 members trained in the topic of compliance;
  • 98% of the members have undergone training in the Code of Conduct and have signed the document;
  • Global knowledge of the Compliance Policy has increased from 49% to 82%;
  • Beginning of the training program for partners concerning the company’s Code of Conduct for Third Parties;
  • Compliance Program has reached 95% on actions implemented: 153 out of 161;
  • Adherence to the Commitment of the Corporate Movement for Integrity and Transparency;
  • 13 new normative documents created, and 120 normative documents reviewed;
  • Investigation training for members of the Compliance Committee and Ethics Committee;
  • Training on anticorruption for members of the Board of Directors and Audit Committee;
  • Completion of 12 internal audit projects;
  • Significant growth in the score (8.7) of the evaluation by the Ethos Institute’s Thematic Guide: Integrity, Prevention and Fight Against Corruption, which was above the market average (6.7).

2017 Highlights and Actions

  • Target incorporated into the individual Action Program of all Leaders Professionals hired in Mexico, USA and Europe, and creation of the internal audit area;
  • 2 Policies, 13 Directives, 20 Procedures and 3 control tools created;
  • Training sessions completed (99% of employees trained in the revised Code of Conduct, and 91% of those located in Brazil trained in anticorruption);
  • Due diligence of members implemented in Brazil and of suppliers implemented in Mexico as well;
  • Outsourced Ethics Line Channel.

Risk description

  • Risk of impact upon the preservation of territories, livelihood, lifestyle, culture and heritage, especially of traditional communities, such as indigenous people, quilombolas and fisher communities.

Right-holders

  • Communities, including children.

Risk location

  • Surrounding communities;
  • Value chains.

2018 Highlights and Actions

Since 2015, we have supported a participatory fishing monitoring program that has been tested and implemented in the communities of Ilha da Maré (Bahia, Brazil), in the surroundings of our operations. The objective of the program is to promote the sustainable management of artisanal fishing in the region, the mantainance of traditional local cultures and livelihoods, and emancipatory environmental education:

  • Monitoring of water and air quality;
  • Daily collaborative monitoring of artisanal fishing: 100 fisher people participating annually;
  • Inauguration of Artisanal Fishing Institute headquarters and conclusion of its registration at the Social Security Institute (INSS), to allow it to provide services - as a legitimate representative of the demands of the communities of Ilha de Maré - such as issuing of a General Fishing Register, which guarantees fisher people rights such as disability insurance, retirement, and maternity aid;
  • 269 children educated about the value of local knowledge and environmental preservation and conservation in the local schools.

2017 Highlights and Actions

  • Monitoring of water and air quality;
  • Daily collaborative monitoring of artisanal fishing: 100 fisher people participating annually;
  • 72 fisher people trained in managing non-profit organizations, social entrepreneurship, artisanal fishing legislation and social and environmental matters, etc;
  • Artisanal Fishing Institute created in partnership with Community Leaders;
  • 150 children educated in environmental matters and 30 children educated in African musical culture, by 6 trained local agents.

Risk description

  • Risk of difficulty in guaranteeing compliance of the entire value chains with decent and socially responsible work.

Right-holders

  • Value chain employees;
  • Communities, including children.

Risk location

  • Value chains, in particular within the sugarcane-ethanol, logistics and recycling chains.

2018 Highlights and Actions

Decent work

  • 95% of the ethanol purchased from suppliers that are committed to the Responsible Ethanol Sourcing Program (the remaining are SPOT* supplier mills that signed, at least, our Code of Conduct for Third Parties);
  • 98,7% compliance at the ethanol suppliers audited**;
  • All 37 recycling cooperatives of the Ser+ program were approved on the human rights evaluation.

*Suppliers that, although registered at Braskem, do not have supply agreements.

**100% of the committed supplier mills and a sample of their sugarcane suppliers are audited by third parties every two years.

Sexual exploitation of children

Since 2010, Braskem has participated in the Na Mão Certa Program, developed by Childhood Brazil. Within the program, we implement awareness-raising actions with our logistics and transportation suppliers, in order to promote the protection of children against sexual abuse and exploitation:

  • Braskem was recognized for the third consecutive year for going beyond the annual goals established by Childhood Brazil;
  • 749 truck drivers, 92 logistics third parties, and 42 members, in addition to the involvement of 32% of the carriers that serve us, participated in awareness-raising activities;
  • Approval of 13% of the stop and rest areas inspected this year;
  • Support to Childhood Brazil in carrying out the Diagnostics of Children Rights Guarantee System in three municipalities in the surroundings of our operations in Bahia, Brazil.

2017 Highlights and Actions

Decent work

  • 99.5% of the ethanol purchased from suppliers that are committed to the Responsible Ethanol Sourcing Program;
  • 100% of the suppliers trained in the Responsible Ethanol Sourcing Program;
  • 350 sugarcane producers informed about Green Polyethylene (Green PE) and the Responsible Ethanol Sourcing Program;
  • 98.4% compliance at the 5 ethanol suppliers audited.

Sexual exploitation of children

  • 10 focal points and multipliers trained;
  • 778 truck drivers, 25 freight companies and 18 manufacturers participated in awareness-raising and the Brazilian Chemical Manufacturers’ Association (Abiquim) was engaged, organizing a volunteer protection network on the highways;
  • 3 rest stops for truck drivers with improved infrastructure;
  • 43 gas stations inspected, with 5 approvals;
  • Launch of portal for scheduling highway shipments.

Risk description

  • Risk of difficulty in increasing the recyclying rate of the post-consumer plastic, thus impacting on the environment and causing a societal garbage and pollution problem.

Right-holders

  • Society as a whole.

Risk location

  • Value chain.

2018 Highlights and Actions

  • Braskem’s positioning on Circular Economy defined a series of global initiatives to boost the Circular Economy in the production chain of manufactured plastic good5;
  • Alliance to the End Plastic Waste: we joined this initiative that involves 30 corporations to help minimize the impact of waste disposed of improperly, and to seek new technologies and business models that favor reuse of this material;
  • Audits conducted at 100% of recycling cooperatives participating in the Wecycle6 Platform;
  • Qualification and audits conducted of 2 recycling cooperatives (Ser+ program) to serve our Wecycle program;
  • 417 teachers and 4,042 students educated in post-consumer practices through Edukatu program, in addition to 1.174 teachers and education professionals and 271 students that participated in activities on the topic;
  • Support to Ecobarreira project, created to prevent solid waste from reaching Lake Guaíba, in Porto Alegre-RS (Brazil);
  • Sorting of 28 tons of plastic through Plastianguis, an event held in Mexico that encourages recycling and helps educate the community to identify and sort plastic waste.

2017 Highlights and Actions

  • Definition of global leadership of Post-Consumer Waste at Braskem;
  • 120 tons of Polyethylen (PE) and Poylpropylene (PP) recycled via the Wecycle Platform;
  • 15 different technologies mapped to improve resin quality;
  • 338 teachers and 3,831 students educated in post-consumer practices through Edukatu program.
 

5 Learn more about our positioning in Circular Economy in https://www.braskem.com/principal/circulareconomy .

6 Learn more about WeCycle in https://www.braskem.com.br/wecycle/home-en .

Braskem takes action to promptly address any allegation of misconduct, contrary to the Codes, our Values or the Law. The Ethics Line is a confidential, dedicated channel that Braskem Team Members, Suppliers, Contractors, Clients and other stakeholders can use to report incidents of misconduct. The reports received through the channel help to maintain a business environment grounded in ethics, integrity and transparency.

The Ethics Line channel is available 24 hours / 7 days a week on the external portal ( www.ethicslinebraskem.com ), on the internal portal and through toll-free phone numbers in the language of the countries where Braskem operates.

All allegations received through the Ethics Line channel are registered by an independent and specialized company, ICTS, ensuring absolute confidentiality and appropriate investigation or treatment for each situation by Braskem's Compliance team and senior leaders, without any conflicts of interest. All allegations and the results of investigations are periodically reported to the Global Ethics Committee which, in turn, reports to the Board of Directors via the Chief Compliance Officer.

See the main results of the Ethics Line channel (including remediation measures) on our Annual Reports .

Braskem also has communication channels open to all communities where it operates. In some units, in addition to a 0800 emergency hot-line and the contact area available on the company’s website, the community may interact with the company through periodic meetings, factory visitation programs, training, and interface with the government – initiatives usually promoted by the Community Consultative Councils (CCC’s) of each location.