Human Rights

The commitment to respect internationally recognized human rights is part of Braskem's values expressed in its codes of conduct, policies, directives, processes and voluntary agreements . They are mostly influenced by and reflect the fundamental principles described in the Universal Declaration of Human Rights (UDHR) and the International Labour Organization´s standards.

Braskem expects that its employees, all contractors who work at any of Braskem's facilities, and its business partners share similar values, being compliant with or exceeding its codes and all other applicable laws and regulations besides promoting human rights.

Continuing its commitment to Human Rights, Braskem documented an evaluation focused on the practices of protection and promotion of these rights in its own operations and value chain. Led by the The United Nations Guiding Principles on Business and Human Rights (UNGP), developed by John Ruggie, this evaluation has fulfilled the following phases to date:

Human Rights Review

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Sector benchmarking

Description:
Analysis of how petrochemical companies are working on Human Rights.

Consultation Process:
» Companies Analyzed: 17
» Secondary Research

 
Impact assessment and due diligence

Description:
Identification of key risks, opportunities and human rights holders through the company's global operations and its value chain. Analysis of how Braskem identifies, prevents, mitigates and accounts for the impacts.

Consultation Process:
» Secondary Research
» Interview Braskem Staff: 54 leaders and specialists from HR, HSE, Sourcing, Legal, Corporate Governance and Compliance.
» Interview External Stakeholders: 14 leaders and specialists of Customers, Suppliers and Trade Associations.
» Review of more than 100 documents provided: Among them, Braskem evaluated the 2016 Image and Reputation Survey which consolidated 5,190 online responses from Employees, Customers, Suppliers, Academics, NGOs, Local Communities, Trade Associations, Government, Press, and the General Public.

 
Gap analysis & recommendations

Description:
An understanding of how Braskem's current policies and processes allow it to act effectively in protecting and promoting human rights, and final recommendations.

Consultation Process:
» Review of the information collected during the other two phases on the basis of UNGP guidelines.

Within the petrochemical and plastics sector, the main aspects are related to safety, health and the environment (including post-consumption). Furthermore, specifically in Brazil, even with the advancement of ethanol and logistics chains, Braskem is concerned about the working conditions (there are risks of Forced Labor and working excess hours), and the community well-being (there is a risk of sexual exploitation of children and adolescents on the country's highways, and Braskem makes an effort to strengthen the traditional people's cultural values and practices). Among the human rights holders who can be impacted are Braskem´s employees and contractors, value chain workers (mainly from small businesses, migrants, and fourth-party truck drivers), consumers and local communities (mainly children, waste pickers, fishermen and quilombolas).

Based on all identified aspects, Braskem defined its Actionable Impact Themes related to Human Rights which are already being implemented:

After this process, a more experienced Braskem will engage with its stakeholders to motivate them to improve the current mitigation plans. These plans are (at country or industrial unit level) at the four operation sites (Brazil, Mexico, USA and Germany). Externally, Braskem focuses on its business partners that represent high social and environmental impacts such as the suppliers from 24 of 69 spend categories.

The aspects are not necessarily material for all sites or business partners and have the same management maturity. Explicitly or implicitly, they are integral parts of differing management systems. Some of them are monitored globally by senior management on a quarterly basis, and stem from the strategic macro objectives for sustainability.

The objective of this work is to establish an integrated, strategic and continuous governance of the theme. From 2018, the assessment of human rights impacts will be strengthened and integrated into the process of reviewing the Braskem´s Materiality Matrix which occurs every three to five years.

Braskem takes action to promptly treat any allegation of misconduct, contrary to the Codes, our Values or the Law. In this regard, the Ethics Line channel is made available by Braskem so that its Employees, Suppliers, Third Parties, Customers and other member of the public can, in a safe and responsible manner, contribute information to maintain a safe, ethical, transparent and productive corporate environment.

The Ethics Line channel is available 24 hours / 7 days a week on the external portal ( www.ethicslinebraskem.com ), on the inner portal and through toll-free phone numbers (attended by third party specialized professionals in complaint handling, except Germany) in the language of the countries where Braskem operates.

All allegations received through the Ethics Line channel are registered and investigated with independence, impartiality, methodology and legal protection, guaranteeing confidentiality, anonymity and prohibition of retaliation against the complainant, even if the facts of the situation are not entirely clear. 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 2016 results of the Ethics Line channel (including remediation measures) on page 33 of the Annual Report. In accordance with our commitment to transparency, Braskem also disclosed details about mismanagement on pages 31 and 32.

Moreover, Braskem has communication channels open to all Communities where it operates. In some units, in addition to the 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.