2022 Communication on Progress

Braskem S.A.

Published date

June 27, 2022

No. of questions

63

CEO Statement

Signed

  • Governance

    Policies and Responsibilities

    1. Does the Board / highest governance body or most senior executive of the company:

    Optional comment
    Braskem has policies and governance bodies that oversight ESG startegy, Risk management and Anti-corruption. For ESG oversight, there is the Communication, Strategy and Enviormental, Social and Governance Committee, which provides support for the Board of Directors on Sustainable Development Global Policy monitoring. In an executive level, ESG oversight occurs through the Global Sustainable Development Committee, led by the CEO and composed of all senior executives of Braskem. This committee is responsible for ensuring the achievemet of Braskem long term strategy on sustainability, and counts with specific worstream groups for each commitment which are led by at least one of the senior executives. For risk management, compliance and anticorruption, there is the Statutory Compliance and Audit Committee, which is also a supportive committee of the Board of Directors, that has the role of oversight all company's structure on compliance, which includes risk management and anticorruption guidelines. In order to provide greater transparency to its stakeholders on how Braskem is delivering a more sustainable growth, since 2007 it reports sustainability annual achievements in its Annual Report verified by third party specialists. Since 2020, the annual report follows simultaneously Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and International Integrated Reporting Council (IIRC) guidelines. This report includes all Braskem commitments and strategy advances on ESG initiatives and is revised by the senior executive management and board of directors. In addition to that, it has both a CEO and Chairman statement on ESG advances and impacts. https://www.braskem.com.br/2021integratedreport https://www.braskem-ri.com.br/en/the-company/bylaws-and-policies/

    2. Does the company have a publicly stated commitment regarding the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a commitment within 2 years

    Yes, and the commitment is focused on our own operations

    Yes, and the commitment includes our own operations and the value chain

    Yes, and the commitment includes our own operations and the value chain along with communities and society

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    In 2020, we launched our Global Sustainable Development Strategy for 2030 and 2050. This strategy was built based on the analysis of global challenges and trends, on the Materiality Matrix and on the results of the Risk Management analysis of our business and our value chain, and on relevant points for society. In this strategy we established long term goals considering all dimensions of sustainable development (economic, social and environmental), the UN Sustainable Development Goals - maintaining higher priority in the SDGs where our greatest impacts are, and the Paris Agreement on Climate Change. Human Rights, Labour Rights/Decent Work and Environment are committments covered in Braskem long-term sustainable development strategy: https://www.braskem.com.br/newcommitments. For example, on the front of combating climate change, we have set the goals of reducing 15% of our greenhouse gas emissions in scopes 1 and 2 by 2030, and achieving carbon neutrality by 2050. On the circular economy transition front, we seek mechanical and advanced recycling solutions, with the goal of expanding our portfolio by 2025 to include 300,000 tons of thermoplastic resins and chemicals with recycled content and by 2030, to include 1 million tons of these products. And on the social responsibility and human rights front, we have set goals such as promoting gender equity by increasing the number of women in leadership positions; increasing the number of black people among our people; benefiting people through our social responsibility initiatives; and managing 100% of our medium and high human rights risks in the value chain. In addition to that, all of the topics covered in the question are commitments required to all team members and suppliers/partners through the signature of Braskem Code of Conduct, including the committment for anti-corruption. Code of Conduct: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/da36c8fb-a46e-c0b9-eb63-aa28d8ba1006?origin=1. Code of Conduct for Third Parties: https://www.braskem.com/portal/principal/arquivos/Download/Upload/Thrid%20Party%20Code%20of%20Conduct(1).pdf#:~:text=Third%20Party%20Code%20of%20Conduct%20The%20performance%20of,actions%20practiced%20by%20its%20trading%20partners%20and%20suppliers.

    3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

    No, this is not a current priority

    No, but we plan to have a code of conduct within two years

    Yes, focused on employee conduct

    Yes, focused on employees and suppliers

    Yes, focused on employees, suppliers, and other business relationships

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Code of Conduct: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/da36c8fb-a46e-c0b9-eb63-aa28d8ba1006?origin=1. Code of Conduct for Third Parties: https://www.braskem.com/portal/principal/arquivos/Download/Upload/Thrid%20Party%20Code%20of%20Conduct(1).pdf#:~:text=Third%20Party%20Code%20of%20Conduct%20The%20performance%20of,actions%20practiced%20by%20its%20trading%20partners%20and%20suppliers.

    4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

    No one is specifically responsible for this topic

    Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)

    Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)

    Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights

    Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Braskem oversight on environmental, social and governance factors starts from its highest governance body, which is the Board of Directors. As per its internal rules document, among the Board's duties are the oversight of (i) environmental, social and governance (ESG) initiatives; (ii) compliance system principles and goals; and (iii) corporate risk management. The management guidelines for these themes are set, approved, and monitored by the Board through the following corporate documents: Global Sustainable Development Policy, Global Compliance System Policy, Global Anti-Corruption Policy, Code of Conduct and Global Risk Management Policy. To ensure the appropriate deployment of such guidelines, the Board counts with specific supportive committees, composed of directors, that regularly discuss and monitor the guidelines implementation with the senior executive managers (vice-presidents). Among such committees are Communication, Strategy and Environmental, Social and Governance committee (CESESG), which is responsible for Global Sustainable Development policy, and the Statutory Compliance and Audit Committee, which is responsible for the Code of Conduct, Compliance System, Anti-Corruption and Risk Management policies. In terms of sustainability, the Global Sustainable Development Policy establishes guidelines for Braskem contribution to a balanced economic growth, contributing to planet’s preservation and social justice, having ethics and integrity as a core value on this path. For that, the policy requires the establishment of a global sustainable development strategy with long-term goals that, in an integrated manner, attributes responsibilities to all the company’s leadership and team members for the achievement of such goals. The Chief Executive Officer (CEO) is the highest executive level responsible for ensuring the appropriate deployment of the policy within the company and the availability of resources for the concrete evolution of the established strategy. In 2021, Braskem renewed its long-term strategy on sustainable development, which was approved by the board of directors and is now composed of 7 dimensions with commitments and goals for 2025, 2030 and 2050, addressing the main challenges of its business, industry, and society nowadays. Strengthening the senior executives governance over the renewed strategy, Braskem established the Global Sustainable Development Committee, led by the CEO and composed of all vice-presidents, in which each of them is responsible for the accomplishment of one of the defined long-term commitments. The executives also count on a sustainable development external advisory board, composed of independent and specialist members, with diverse profiles, that provides exempt perspectives for contributions on Braskem long term strategy. In terms of anti-corruption and risk management, besides principles established in the Global Sustainable Development Policy, Braskem Compliance System Policy establishes the commitment to ethics, compliance and anti-corruption and the business structure that supports the prevention, mitigation and remediation any potential threat to business ethical course. In that sense, the company has a Chief Compliance Officer (CCO) that reports directly to the Statutory Compliance and Audit Committee and indirectly to the CEO. The CCO is responsible for the implementation of Compliance System Policy, Code of Conduct, Anti-Corruption Policy and Risk Management Policy, which are documents that continuously commits Braskem to ethical and anti-corruption principles and risk management oversight, regularly updated, approved and monitored by the Board of Directors.

    5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

    No formal structure

    Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)

    Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)

    Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)

    Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Braskem oversight on environmental, social and governance factors starts from its highest governance body, which is the Board of Directors. As per its internal rules document, among the Board's duties are the oversight of (i) environmental, social and governance (ESG) initiatives; (ii) compliance system principles and Braskem oversight on environmental, social and governance factors starts from its highest governance body, which is the Board of Directors. As per its internal rules document, among the Board's duties are the oversight of (i) environmental, social and governance (ESG) initiatives; (ii) compliance system principles and goals; and (iii) corporate risk management. The management guidelines for these themes are set, approved, and monitored by the Board through the following corporate documents: Global Sustainable Development Policy, Global Compliance System Policy, Global Anti-Corruption Policy, Code of Conduct and Global Risk Management Policy. To ensure the appropriate deployment of such guidelines, the Board counts with specific supportive committees, composed of directors, that regularly discuss and monitor the guidelines implementation with the senior executive managers (vice-presidents). Among such committees are Communication, Strategy and Environmental, Social and Governance committee (CESESG), which is responsible for Global Sustainable Development policy, and the Statutory Compliance and Audit Committee, which is responsible for the Code of Conduct, Compliance System, Anti-Corruption and Risk Management policies. In terms of sustainability, the Global Sustainable Development Policy establishes guidelines for Braskem contribution to a balanced economic growth, contributing to planet’s preservation and social justice, having ethics and integrity as a core value on this path. For that, the policy requires the establishment of a global sustainable development strategy with long-term goals that, in an integrated manner, attributes responsibilities to all the company’s leadership and team members for the achievement of such goals. The Chief Executive Officer (CEO) is the highest executive level responsible for ensuring the appropriate deployment of the policy within the company and the availability of resources for the concrete evolution of the established strategy. In 2021, Braskem renewed its long-term strategy on sustainable development, which was approved by the board of directors and is now composed of 7 dimensions with commitments and goals for 2025, 2030 and 2050, addressing the main challenges of its business, industry, and society nowadays. Strengthening the senior executives governance over the renewed strategy, Braskem established the Global Sustainable Development Committee, led by the CEO and composed of all vice-presidents, in which each of them is responsible for the accomplishment of one of the defined long-term commitments. The executives also count on a sustainable development external advisory board, composed of independent and specialist members, with diverse profiles, that provides exempt perspectives for contributions on Braskem long term strategy. In terms of anti-corruption and risk management, besides principles established in the Global Sustainable Development Policy, Braskem Compliance System Policy establishes the commitment to ethics, compliance and anti-corruption and the business structure that supports the prevention, mitigation and remediation any potential threat to business ethical course. In that sense, the company has a Chief Compliance Officer (CCO) that reports directly to the Statutory Compliance and Audit Committee and indirectly to the CEO. The CCO is responsible for the implementation of Compliance System Policy, Code of Conduct, Anti-Corruption Policy and Risk Management Policy, which are documents that continuously commits Braskem to ethical and anti-corruption principles and risk management oversight, regularly updated, approved and monitored by the Board of Directors.

    Prevention

    6. Does the company have a process or processes to assess risk?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Braskem Global Risk Management Policy establishes the risk management process, covering the stages of establishing the context and identifying, evaluating, prioritizing, treating, communicating, and monitoring the Risks involved in the company’s business activity, with a view to reduce the company's level of exposure to losses. That is a cyclical and continuous structured process used to identify, understand, and respond to risks that may impact the achievement of the company’s objectives, including the question mentioned risks. The risk maps are segregated by vice presidencies, regions, and new businesses, and the consolidated version is approved by the Board of Directors. Thus, the company prioritizes risk treatment actions, allocates managers and responsible, with oversight of the Board of Directors as well. For unplanned business interruptions or incidents, business continuity plans are outlined with detailed strategies to provide an adequate level of operation within the company until the situation is normalized. Specifically for human rights and labor rights/decent work, Braskem conducted its first due diligence on value chain in 2016, focused on Brazil operations, and resulted in the first Human Rights Risk Matrix. To ensure an integrated risk management, Braskem also included in 2017, the risks of human rights violations in the Corporate Risk Matrix. The matrix is monitored by the Board of Directors and the Senior Executive Management, and reassessed biannually, ensuring a periodic and systematic review of the risks and opportunities for improvement. The same will be carried out for the new risks identified at the review started in 2021. In 2021, Braskem conducted a new Human Rights audit, the first on a global scale, to identify and assess negative impacts in this context, to update and level high and medium risks, as well as review the prioritization of management. During the process, we conduct a documentary analysis, interviews with team members and leaders, interviews with representatives from the surrounding communities and local experts, as well as an analysis of public domain and press information. The report with the results was completed in early 2022, and then meetings with local leaders will start. The purpose is to have action plans still defined in 2022, to manage 100% high and medium Human Rights risks. Braskem plans and deadlines will be reported to all stakeholders. As an example of action plans to mitigate value chain risks related to human rights, after its first due diligence Braskem identified a high risk of human/labor rights violation on ethanol value chain, a feedstock used to produce the green polyethylene. In order to mitigate this risk, Braskem created the Responsible Ethanol Purchase program, that establishes a segregated code of conduct, with specific requirements such as rigid HES and quality parameters and regular audit onsite (including second layer suppliers), in which Braskem ethanol suppliers must sign and comply with.

    6.1. During the assessment of risk, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

    No, this is not a current priority

    No, but we are planning to develop one in the next two years

    Yes, related to our own operations

    Yes, related to our own operations and entire value chain and other business relationships

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Optional comment
    Through the global coporate risk management process Braskem conducts ESG due dilligence within its own business. Through the registering process, Braskem conducts ESG due dilligence on its potential suppliers.

    7.1. During the due diligence process, which business relationships are reviewed?

    A few suppliers or business relationships [approximately less than 25 %]

    Several suppliers / business relationships (i.e., first tier or other high priority) [approx. 25 - 50 %]

    Most suppliers / relevant business relationships [approx. 51 - 99 %]

    All suppliers / relevant business relationships outside the supply chain

    Human rights risks

    Labour rights risks

    Environmental risks

    Corruption risks

    Concerns and grievance mechanisms

    8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

    Optional comment
    We have adopted a Code of Conduct, a Compliance System Policy and an Anti-Corruption Policy, as well as a series of in-company guidelines designed to guide our management, members and counterparties and reinforce our principles and rules on ethical behavior and professional conduct. We maintain an Ethics Line overseen by a third party available to team members and non-team members. All whistleblower complaints are investigated by the Compliance team and submitted for assessment by our Ethics Committee and/or our Statutory Audit and Compliance Committee. For more information, please visit: https://www.braskem.com.br/compliance

    8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

    No

    Yes

    Is the process communicated to all employees/workers in local languages?

    Is the process available to non-employees (e.g., contractors, vendors, suppliers)?

    Is the process confidential (e.g., whistleblowing process)?

    Are there processes in place to avoid retaliation?

    Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)

    Other (Please provide additional information)

    9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

    No process to enable remedy to stakeholders

    Remedy available to some stakeholders (i.e., some geographies, employees only)

    Remedy is available to all affected stakeholders

    Remedy is available to all stakeholders, and suppliers are expected to have similar policies

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Optional comment
    Remedy suggestions are made available to all stakeholders. It is up to the Third Party to effectively implement the proposed solutions, and such implementation might be followed up by Braskem. In certain instances, Braskem may terminate the agreement with the Third Party or suspend it until effectively remediated.

    Lessons

    10. How does the company capture lessons regarding each of the following sustainability topics?

    No lessons are regularly captured

    Conducts root cause analyses/investigation of major incidents

    Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly

    Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Executive Pay

    11. Is executive pay linked to performance on one or more of the following sustainability topics?

    No, and we have no intention to change

    No, but we plan to within two years

    Yes

    Human Rights

    Labour Rights / Decent Work

    Environment

    Anti-Corruption

    Board Composition

    12. Percentage of individuals within the company’s Board / highest governance body by:

    Number/Percentage

    Not applicable (Please provide additional information)

    Total number of board members (#)

    11

    Male (%)

    91

    Female (%)

    9

    Non-binary (%)

    0

    Under 30 years old (%)

    0

    30-50 years old (%)

    9

    Above 50 years old (%)

    91

    From minority or vulnerable groups (%)

    Braskem does not require of board of directors a self-declartation related to other minority vulnerable groups

    Executive (%)

    9

    Independent (%)

    46

    13. Do you produce sustainability reporting according to:

    Additionally, we report our information in the company's Sustainability Report, which is assured by a third party. And we report our Greenhouse Gas Inventory within the GHG Protocol, following its guidelines.

    Data Assurance

    14. Is the information disclosed in this questionnaire assured by a third-party?

    https://www.braskem.com.br/portal/Principal/arquivos/Braskem-Relatorio-Integrado-2021-ENG-16-06.pdf Page: 91
    https://www.braskem.com.br/portal/Principal/arquivos/Braskem-Relatorio-Integrado-2021-ENG-16-06.pdf Page: 91

  • Human Rights

    Materiality / Saliency

    1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?

    Optional comment
    Please refer to our webiste to acess the full Human Rights Matrix and mitigation actions: https://www.braskem.com.br/socialresponsibilityandhumanrights We could only select 5 options, however Rights of women and girls are also mapped on this work.

    Response

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Our commitment to respecting human rights is in accordance with the United Nations (UN) Guiding Principles on Business and Human Rights and covers all internationally recognized rights and those expressed in the International Charter of Human Rights (Universal Declaration of Human Rights, International Covenant on Civil and Political Rights and International Covenant on Economic, Social and Cultural Rights) and in the International Labor Organization Declaration on the fundamental principles and rights to work¹. Our Global Sustainable Development Policy, approved by the Board of Directors, reinforces our commitment to the topic, also reflected and expressed in the Braskem Code of Conduct . We understand that our actions may positively or negatively impact human rights. These impacts can occur in our own operations, in surrounding communities, throughout our supply chains, or even in society as a whole. In this sense, we adopt measures to prevent, mitigate and, if applicable, repair possible violations of human rights with which Braskem may be involved both through our own operations and as a result of the relationships of our business. In order to ensure integrated risk management, Braskem included the risks of violation of human rights in the Corporate Risk Matrix, accompanied by the Board of Directors and by Senior Management and reassessed every two years, thus guaranteeing a periodic and systematic review of the risks and opportunities of human rights. ¹ Including the Conventions of the International Labor Organization relevant to Braskem’s business and internalized by the countries where we have operations. Please consult out website and the Annual Integrated Report for more information: https://www.braskem.com.br/socialresponsibilityandhumanrights The Maceio Case Braskem has the safety of people as a non-negotiable value, and since the occurrence of the geological event in Maceió (AL), in 2018, this has been the main concern. In 2021, we had important advances in this regard, reaching over 97% of unoccupied properties, with the relocation of families in the affected region. The estimated deadline in the agreement with the authorities is that the actions of the Relocation and Financial Compensation Program will be completed by December 2022. -> More than 11,000 indemnities were paid, that added to the financial and lawyer's fees, totals R$2.4 billion. -> 99.5% acceptance rate of compensation proposals (until 04/30/2022). -> + R$ 2.4 billion disbursed to the PCF (until 04/30/2022). -> R$ 12 billion(1) in provisions for compensation compensation and security actions. + More than 1,200 professionals directly involved on behalf on behalf of the company to resolve the issues related to the case. (1) Refers to the total gross amount of provisionsrelated to the geological event in Alagoas. For more information, please visit: https://www.braskem.com.br/alagoas

  • Labour

    Commitment

    1. Does the company have a policy commitment in relation to the following labour rights principles?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Global Sustainable Development Policy (2018) / Code of Conduct (2020)

    Forced labour

    Global Sustainable Development Policy (2018) / Code of Conduct (2020) / Integrated Report (2021)

    Child labour

    Global Sustainable Development Policy (2018) / Code of Conduct (2020) / Integrated Report (2021)

    Non-discrimination in respect of employment and occupation

    Global Sustainable Development Policy (2018) / Code of Conduct (2020) / Integrated Report (2021)

    Occupational safety and health

    Global Sustainable Development Policy (2018) / Code of Conduct (2020)

    Working conditions (wages, working hours)

    Global Sustainable Development Policy (2018) / Code of Conduct (2020) / Integrated Report (2021)
    Optional comment
    Global Sustainable Development Policy: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/b31a9aa8-a256-f80d-8afb-ecb6434589da?origin=1 Code of Conduct: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/da36c8fb-a46e-c0b9-eb63-aa28d8ba1006?origin=1 Integrated Report (p.66): https://www.braskem.com.br/portal/Principal/arquivos/Braskem-Relatorio-Integrado-2021-ENG-16-06.pdf Third party Code of Conduct: https://www.braskem.com/portal/principal/arquivos/Download/Upload/Thrid%20Party%20Code%20of%20Conduct(1).pdf#:~:text=Braskemhas%20prepared%20this%20Third%20Party%20Code%20of%20Conduct,behavior%20that%20are%20expected%20from%20all%20Third%20Parties.

    1.1. For each labour rights policy, is it:

    Aligned with international labour standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving labour rights expertise from inside and outside the company?

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks /impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    4. Who receives training for the following labour rights issues?

    No training provided

    Select employees

    All employees

    Contractors

    Direct suppliers of the organization

    Indirect suppliers of the organization

    Other – such as partners, clients, etc.

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    Child labour

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    Performance

    6. What is the percentage of employees covered under collective bargaining agreements?

    Percent of employees (%)

    Unknown

    Employees covered under collective bargaining (%)

    80.3
    Optional comment
    In Brazil the number is 98.8%

    7. What is the percentage of employees in a trade union or other workers' organization?

    Percent of employees (%)

    Unknown

    Not applicable (Please provide additional information)

    Employees in a trade union or on a worker committee (%)

    25.4

    8. In the course of the reporting period, what was the percentage of women in:

    Percent of women (%)

    Unknown

    Senior leadership level position

    27

    Non-executive board

    9.1

    9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

    Salary ratio (%)

    Unknown

    Choose to not disclose

    Women / Men (%)

    84

    10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

    Frequency of injury

    Unknown

    Choose to not disclose

    Frequency of injury

    0
    Optional comment
    Braskem frequency of injury is almost zero, considering both contractors and employees

    11. In the course of the reporting period, what was the company’s incident rate?

    Incident rate

    Unknown

    Choose to not disclose

    Incident rate

    0.86

    Response and Reporting

    12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Freedom of association and the effective recognition of the right to collective bargaining

    Forced labour

    For the topics on which we report NA because the company has no members impacted on the topic, we do not hire underage members, and all social aspects of work are guaranteed in collective agreements.

    Child labour

    For the topics on which we report NA because the company has no members impacted on the topic, we do not hire underage members, and all social aspects of work are guaranteed in collective agreements.

    Non-discrimination in respect of employment and occupation

    Occupational safety and health

    Working conditions (wages, working hours)

    13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

    Between 2020 and 2022, the company created a program (New Ways of Work) to define actions related to remote work, such as the adequacy of employment contracts, negotiations with unions and the availability of ergonomic kits and internet assistance for the hybrid/remote work. In addition, it implemented a recurring Well-being survey (Wellness Thermometer) to listen to members and third parties, which generated several actions to improve the work environment and people's health and well-being, such as: initiatives to ensure respect for work and rest hours, day-off benefit on birthdays and creation of a comprehensive health program that provides financial, psychological, legal and social assistance to Members.

  • Environment

    Commitment

    1. Does the company have a formal policy on the following environmental topics?

    No, and we have no plans to develop a policy

    No, but we plan to in the next two years

    Yes, included within a broader policy

    Yes, articulated as a stand-alone policy

    Not applicable (Please provide additional information)

    Climate Action

    Global Sustainable Development Policy (2018) / HES Policy (2019)

    Water

    Global Sustainable Development Policy (2018) / HES Policy (2019)

    Oceans

    Global Sustainable Development Policy (2018) / HES Policy (2019)

    Forests / Biodiversity / Land Use

    Global Sustainable Development Policy (2018) / HES Policy (2019)

    Air Pollution

    Global Sustainable Development Policy (2018) / HES Policy (2019)

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Global Sustainable Development Policy (2018) / HES Policy (2019)

    Energy & Resource Use

    Global Sustainable Development Policy (2018) / HES Policy (2019)
    Optional comment
    Global Sustainable Development Policy (2018): https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/b31a9aa8-a256-f80d-8afb-ecb6434589da?origin=1 HES Policy (2019): https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/475de1c5-d853-3391-7373-28efdd29a3cf?origin=1

    1.1. For each environmental policy, is it:

    Aligned with international environmental standards?

    Publicly available?

    Approved at most senior level of the company?

    Applied to the company’s own operations?

    Applied to the company’s supply chain and/or other business relationships?

    Developed involving environmental expertise from inside and outside the company?

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Prevention

    2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

    No engagement on this topic

    To better understand the risks/ impacts in question

    To discuss potential ways to prevent or mitigate the risks/ impacts in question

    To agree on a way to prevent/ mitigate the risks/ impacts in question

    To assess progress in preventing/ mitigating the risks/ impacts in question

    To collaborate in the prevention/ mitigation of the risks/ impacts in question

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

    Provided internal training/ capacity building for the direct workforce

    Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)

    Conducting an audit process and/or corrective action plan

    Collective Action with peers or other stakeholders to address the issue

    Collaboration with governmental or regulatory bodies

    Other (Please provide additional information)

    No action within reporting period

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

    No monitoring of progress

    Review issues on ad-hoc basis

    Set annual targets/ goals, track progress over time (internal programs only)

    Set annual targets/ goals, track progress over time (internal and external programs)

    Other (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

    Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)

    Climate Action

    By 2030 reduce greenhouse gases emissions by 15% in scope 1 and 2. And by 2050, achieve carbon neutrality. In addition, we plan to expand our green PE portfolio to 1 million tons. The resin is capable of removing 3.09 tons of CO2 during its production process.

    Energy & Resource Use

    Ensure by 2030 that 85% of energy consumption is from renewable sources.

    Water

    Increase the water safety index to 100%, i.e., ensure that 100% of our water consumption is from a safe source. There is no risk of competition with society for this resource.

    Forests / Biodiversity / Land Use

    Braskem commitment on forests/biodiversity/land use is related to a preservation area in Mexico, where we have the goal of reforesting local species. In this area, research and conservation studies are carried out on the species of flora and fauna recorded in the southern zone of the Coatzacoalcos River Basin, in addition to carrying out annual environmental sampling in order to update databases of the species that reside in the area.

    Air Pollution

    The established goal is to e in compliance with local legislation of each region where we operate in term of NOX, SOX and other pollutants. Braskem is assessing its air pullantas inventory in order to adequate premises and improve data accurary. After that, the company is going to evaluate the adoption of long-term targets.

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Our goals are expand our I’m green™ portfolio to include 300,000 tons of thermoplastic resins and chemicals with recycled content by 2025; and grow to 1 million tons of thermoplastic resins and chemicals with recycled content by 2030. Furthermore, we aim to recover 1.5 million tons of plastic waste by 2030.

    Oceans

    Braskem is part of Blue Keepers, an initiative of the UN Global Compact that unites companies from different sectors to face the challenge of plastic waste in the oceans. Our goal is to draw up a waste management plan to generate impact in the short, medium, and long term through the diagnostic, solutions, pilot projects, and public management fronts.

    4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

    Progress is reviewed against goals annually or more frequently

    Progress is reported internally to the most senior level

    Progress is reported externally

    Other (Please provide additional information)

    Climate Action

    Energy & Resource Use

    Water

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Oceans

    5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

    Yes

    No

    Choose to not disclose

    Not applicable (Please provide additional information)

    Climate Action

    Water

    Oceans

    Forests / Biodiversity / Land Use

    Air Pollution

    Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)

    Energy & Resource Use

    Climate Action

    6. What were the company’s gross global greenhouse gas emissions for the reporting period?

    Scope 1 Emissions

    Emissions (tCO2e)

    9987076

    Scope 2 Emissions

    Emissions (tCO2e)

    881089

    Scope 3 Emissions

    Emissions (tCO2e)

    30120701

    7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

    Percent of revenue (%)

    2.1
    Optional comment
    Percentage of projects that have a positive sustainability index in GHG or Energy The sustainability index addresses 5 impact topics correlated to the Sustainable Development Goals, namely: water, energy, greenhouse gases, circularity, and chemical safety. Therefore, the projects in the Innovation & Technology portfolio undergo a qualitative assessment involving these topics which results in the classification of the project, and may have a negative, neutral or positive impact

    8. Has the organization acted to support climate change adaptation and resilience?

    Energy / Resource Use

    9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

    % of total energy consumption

    5.4

    Technology

    10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

    Percent of total revenue (%)

    3.2
    The percentage considers net revenue from Green PE and ETBE products, both made from sugarcane ethanol, an alternative to fossil feedstocks.

    Sector-specific Questions

    11. Which sector(s) does the company operate in? If diversified, choose top 3 by revenue.

    Sector-specific: Water

    12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

    Water withdrawal (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    81150

    Groundwater:

    2687

    Surface water:

    19355

    Rainwater:

    Braskem do not source from rainwater, other sources indicated sufficed the companies requirements (that is why ‘Not applicable’ was chosen).

    Wastewater:

    Braskem do not source from wastewater, other sources indicated sufficed the companies requirements (that is why ‘Not applicable’ was chosen).

    Percentage of water withdrawn in regions with high or extremely high water stress (%)

    15

    Water consumption (volume of water in megaliters):

    Mega-liters

    Unknown

    Not applicable (Please provide additional information)

    Total

    70746

    Groundwater:

    6536

    Surface water:

    10567

    Rainwater:

    Braskem do not source from rainwater, other sources indicated sufficed the companies requirements (that is why ‘Not applicable’ was chosen).

    Wastewater:

    Braskem do not source from wastewater, other sources indicated sufficed the companies requirements (that is why ‘Not applicable’ was chosen).

    Percentage of water consumed in regions with high or extremely high water stress (%)

    16
    Optional comment
    Another source of water for Braskem's withdrawal and consumption, which make up the total of both volumes, is water coming from third parties. For water withdrawal, we have a volume of 59,107 megaliters of water from third parties. For water consumption, we have the volume of 53,641 megaliters of water from third parties.

    13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

    Water intensity of products (cubic meter/$):

    0
    Optional comment
    For Braskem, the regions with high or extremely high water stress are in Brazil (northeast and southeast). The water intensity of both regions combined is 0.001 m3/$ (in dollars), but we wasn't able to input this number on blank field above.

    Sector-specific: Air pollution

    17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

    Emissions (tCO2e)

    Unknown

    Not applicable (Please provide additional information)

    NOx

    10014

    SOx

    5373

    Volatile Organic Compounds (VOC)

    6965

    Hazardous air pollutants (HAP)

    164

    Particulate matter (PM10)

    953

    Persistent organic pollutants (POP)

    0

    Other (please specify in text box)

    6150
    Optional comment
    Others includes total hydrocarbons, carbon monoxide and PTA;

    Sector-specific: Waste

    18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

    Waste Generated (t)

    41027838

    19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

    Hazardous Waste Ratio (%)

    42

    20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

    Single-use plastics (tonnes)

    237752
    Optional comment
    The rationale adopted to arrive at the value provided was to consider the sales volume of products that are used to produce bags and disposables.

    Overall Environment

    21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

    'Throughout our history, Braskem has achieved many sustainable development milestones and objectives. As we have entered a new decade, we started the construction of new challenges for the 2020-2030 cycle, adapting and updating the goals for new global demands. Our strategy was built based on analysis of global challenges and trends, the Company’s Materiality Matrix and the results of business and supply chain Risk Management analysis. The new goals consider all dimensions of sustainable development: economic, social, and environmental, and are aligned with the Paris Climate Change Agreement and with the UN Sustainable Development Goals - maintaining greater priority on the SDGs where we have the biggest impact. Our new commitments are divided into our 7 sustainability dimensions: 1. HEALTH AND SAFETY 2. ECONOMIC AND FINANCIAL RESULTS 3. ELIMINATION OF PLASTIC WASTE 4. COMBATING CLIMATE CHANGE 5. OPERATIONAL ECO-EFFICIENCY 6. SOCIAL RESPONSIBILITY & HUMAN RIGHTS 7. SUSTAINABLE INNOVATION In order to guide its strategy, Braskem defined its first cycle of long-term sustainability commitments, Macro Objectives, envisaging 2020. Braskem has made significant progress over the years and achieved 85% of the established goals. Throughout 2021, we established responsibilities and organized workflows for every dimension of the new sustainability strategy. Accordingly, we have already collected some initial results and ended the year having advanced by 17% on our commitments for 2030. This was possible due to advances in several initiatives, such as new renewable energy contracts, a decarbonization program, and partnerships for recycling, among others. Follow the progression of our goal achievement on our web site: https://www.braskem.com.br/newcommitments

  • Anti-corruption

    Commitment

    1. Does the company have an anti-corruption compliance programme?

    2021
    Optional comment
    Braskem has a Global Compliance System Policy and a Anticorruption Policy as well. In 2021 we were certified by ISO 37001 for complying with anticorruption system requirements. Global Anticorruption Policy: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/81e99950-430b-a05a-aac3-f1655a74c10e?origin=1 Global Compliance System Policy: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/cc994914-6a3b-8e95-4a86-5f7574bf7f72?origin=1

    2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

    Optional comment
    Braskem has a Global Compliance System Policy and a Anticorruption Policy as well. In 2021 we were certified by ISO 37001 for complying with anticorruption system requirements. Global Anticorruption Policy: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/81e99950-430b-a05a-aac3-f1655a74c10e?origin=1 Global Compliance System Policy: https://api.mziq.com/mzfilemanager/v2/d/540b55c5-af99-45f7-a772-92665eb948e9/cc994914-6a3b-8e95-4a86-5f7574bf7f72?origin=1

    Prevention

    3. Who receives training on anti-corruption and integrity?

    3.1. How often is such training provided?

    One time only

    Every year

    Every two or more years

    We do not collect this data

    All employees

    Select employees

    Contractors

    Direct suppliers of the organization

    Other – such as partners, clients, etc.

    Indirect suppliers of the organization

    Optional comment
    Braskem provides training to its third parties according to its internal process requirements.

    4. Does the company monitor its anti-corruption compliance programme?

    Internal Audits and ISO 37001 requirements

    Response and Reporting

    5. Please report the company's total number and nature of incidents of corruption during the reporting year.

    Number of incident(s)

    Unknown

    Choose to not disclose

    Confirmed during the current year, but related to previous years

    0
    Not applicable

    Confirmed during the current year, and related to this year

    0
    Not applicable

    6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

    7. Does your company engage in Collective Action against corruption?

    Ethos Institute, UN Global Compact and supporting industry associations in the development of their own compliance programs (i.e. Abiquim, Abrace, COFIP, COFIC, ...)

    8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

    Braskem has implemented its Compliance System that can be found in the following link: https://www.braskem-ri.com.br/a-companhia/estatutos-e-politicas/. The Compliance System comprises, among other activities, monitoring actions through some global processes: Courtesies, Conflicts of Interest, Interactions with Public Agents, Integrity Due Diligence, and receiving allegations through the Ethics Line Channel. Braskem has also been certified in 2021 with ISO 37001 (Anti-Bribery Management System). All the processes mentioned above, in addition to others that are also part of the scope, are periodically audited internally and externally.