Sustainable development macro goals Goal 2020

Sustainability
aligned to business

Our global Sustainable Development strategy is based on three strategic pillars: increasingly more sustainable processes and resources; more sustainable product portfolio; and offering society, in partnership our client chains, solutions that enable everyone to enjoy an increasingly sustainable life. We have updated our policy with the goal of becoming the leaders in business contribution to Sustainable Development. Learn more about the Global Sustainable Development Policy .

Since our founding, we have worked constantly to align our growth strategy with processes and initiatives that minimize any social and environmental impacts. With a focus on developing a sustainability strategy, our work is based on ten macro goals and targets established for 2020 – all of which are linked to 17 Sustainable Development Goals (SDG) of the United Nations. Complementing these pillars are ten macro goals, which include topics of material importance to the company and its stakeholders. For each macro goal, strategic targets were set for 2020 with intermediate actions established to ensure they are reached. Check below the five ODSs to wich we contributed the most and for more information about Braskem, check the Annual Report  and also the Materiality Matrix .

Health & Safety

Implementation

% Of Achieved Goals

2016
99%
2017
98%
2018
98%
2020
100%

Goal 2020

People Safety: Reach a recordable and lost-time personal injury rate of 0.75 injuries/MMhw;

Process Safety: Have a transportation injury rate (TIER1) of 0.20 Events/MMhw.

Highlights 2018

Performance: From 2002 to 2018, the recordable and lost-time personal incident rate improved by 89%.

Global management: Implementation of new Integrated Management System, Intelius, which involves a set of directives and best international practices aligned with Braskem’s sustainability strategy, continuous improvement and globalization.

This year, a total of R$129 million was invested to improve workplace safety and process safety.

Costs avoided in workplace safety and process safety between 2002 and 2018 amounted to around US$67 million.

Creation of a global Product Stewardship team.

Highlights 2016 - 2013

2016: Substitution of asbestos electrolytic cells at the plant in Maceió, Alagoas.

2015: Issue of the corporate procedure “Product Stewardship,” which reinforces the commitment to reduce product toxicity and establishes a matrix of responsibilities for the entire organization.

The Company recorded its best injury frequency rate since 2002.

2014: Creation of a Working Group to design a multi-year action plan to substitute ozone-depleting substances.

2013: Systematic implementation of annual audits of the integrated health, safety and environment system.

Financial Results

Implementation

% Of Achieved Goals

2016
73%
2017
73%
2018
73%
2020
92%

Goal 2020

Investment grade: Maintain investment-grade ratings at the agencies Moody’s, Fitch Ratings and Standard & Poor’s.

Highlights 2018

Performance: Record-high free cash generation of R$7.1 billion, 187% higher than in 2017.

Investment-grade credit rating: In the year, Standard & Poor's and Moody’s upgraded the outlook for Braskem’s credit rating from negative to stable and, for the first time, the company’s credit rating was three notches above Brazil’s sovereign credit rating at Standard & Poor’s. Therefore, Braskem’s credit rating was investment-grade at Standard & Poor’s and Fitch Ratings and above Brazil’s sovereign credit rating at the three main risk-rating agencies.

Construction of the new polypropylene plant in the United States was begun, with total investment projected at some US$675 million.

Highlights 2016 - 2013

2016: EBITDA: record of R$11.5 billion;

Inauguration of the Mexico Petrochemical Complex;

Braskem maintained the investment-grade ratings assigned to it by two global credit rating agencies: Fitch Rating and Standard & Poor’s. Moody’s downgraded the Company’s investment-grade rating.

2015: EBITDA: record of R$9,372 million.

2014: Braskem entered into an agreement with Siluria Technologies, a U.S.-based company that sells fuels and chemical products made from natural gas. This agreement is for the direct conversion of methane from natural gas into ethylene, which will reduce the costs of plants using naphtha as feedstock.

2013: Braskem announced the expansion of one of its linear low-density polyethylene production (LLDPE) lines at the Camaçari Complex in Bahia state, which added 120 kta to its annual production capacity.

Water Efficiency

Implementation

% Of Achieved Goals

2016
96%
2017
100%
2018
97%
2020
100%

Goal 2020

Maintain: Maintain a water consumption rate (m³/t) below the average consumption rate of the global chemical industry, which is 26.64 m³/t (2014 data).

Increase: Gradually increase the water reuse rate to 25% by 2020, to 30% by 2025 and to 50% by 2030.

Highlights 2018

Performance: The water consumption indicator stood at 4.28 m³/t, which is six times lower than the average of the global chemical industry.

26.3% of the water consumed in Braskem’s operations came from reuse processes. At its units in the ABC region of São Paulo, the water reuse rate has reached 97%.

Costs avoided from improvement in wastewater discharge from 2002 to 2008 amounted to US$107 million.

Recognition: Braskem was one of 27 companies figuring for the second straight year in the A List ranking of the Carbon Disclosure Program (CDP).

Initiatives: The Lower Losses, More Water Movement marked its presence at various important events in Brazil and abroad, such as the 8th World Water Forum, the annual meeting of the UN Global Compact in New York and Rio Water Week.

Braskem supports the project Mogi+Água coordinated by Instituto Trata Brasil and the Municipal Department of Agriculture of Mogi das Cruzes, in São Paulo, Brazil. The goal is to install portable sewage treatment stations (a technology developed by a startup of the Braskem Labs program) on rural properties in the city.

Highlights 2016 - 2013

2016: Braskem analyzed the risk of water scarcity in 8 watersheds, with 4 of these studies concluded in 2017. These studies enabled the mapping of operations located in areas of potential water scarcity risk at the time they were conducted (2015) and in 2040. This made it possible to plan the best way to treat the risks and opportunities identified in the pursuit of alternative water sources in water scarcity areas.

2015: The Company launched the Lower Losses, More Water Movement, which seeks to reduce water losses in distribution, which is an initiative of the UN Global Compact that is aligned with the Sustainable Development Goal SDG-6. The movement is led by Braskem and Sanasa.

The Aquapolo Project consolidated its position as a successful case of adaptation to climate change by enabling normal operations in the ABC region of Greater São Paulo during the 2014-15 water scarcity.

2014: For the first time, Braskem participated in the Water Disclosure, a CDP initiative.

2013: Operation of two water reuse projects, namely Aquapolo (São Paulo) and Água Viva (Bahia), during the year, which allowed Braskem to avoid the withdrawal of 13 billion liters of water from the environment, which corresponds to the consumption of 178,000 people.

Developing Solutions

Implementation

% Of Achieved Goals

2016
85%
2017
91%
2018
97%
2020
100%

Goal 2020

Reputation: Reach “strong” level in its Reputation Score in the “Products & Service” dimension of the public Deep Dive Clients.

Highlights 2018

Braskem Labs: Through the Scale program, 10 startups underwent four months of acceleration involving dozens of mentoring sessions and business connections. Meanwhile, the Challenge program launched 18 challenges for the startup ecosystem, with various pilot projects being tested by us to increase efficiency or reduce costs in a wide array of areas.

Performance: A total of 13 Lifecycle Assessment (LCA) studies were concluded, four of which were independently reviewed, with another 12 simplified studies conducted. In all, from 2006 to 2018, a total of 109 studies have been conducted, 61 of which were completed, 13 revised and 35 simplified.

In 2018, Braskem filed 34 new patents and requested 152 extensions, and invested around R$348 million in innovation and technology.

Highlights 2016 - 2013

2016: In its second edition, the Braskem Labs program received 190 submissions and selected 1,212 innovative proposals in the areas of chemistry and plastics and to combat the mosquito Aedes aegypti;

The Eco Brasil Award, sponsored by the American Chamber of Commerce (Amcham) and the newspaper O Estado de S.Paulo, recognized the Braskem Labs program as the winner in the category “Processes – Large Companies.”

2015: This year, a booklet showing the environmental benefits of plastic was prepared. Braskem’s case study on Emissions Avoided with plastics was selected for publication by the International Council Of Chemical Associations (ICCA);

In the LCA Compendium:

2014: Launch of white-on-black plastic mulch made from polyethylene, designed especially for citrus crops. The solution covers the soil to control weeds and maintain soil moisture and temperature, while also contributing to water efficiency in agriculture;

Braskem polyisobutylene (PIB) was used by Tecno Cell Agroflorestal in the formulations of products that control urban plagues. PIB is a non-toxic transparent chemical product compatible with organic materials;

Development of a new polyethylene resin for use in pipes for water and natural gas distribution networks, for the transport of ore slurry and oil and for sewage networks and water mains.

2013: Inaugural event of the LCA Brazilian Business Network. Led by Braskem, the forum disseminates the use of LCA and created a Brazilian database through the Brazilian LCA Program.

Strengthening Practices

Implementation

% Of Achieved Goals

2016
91%
2017
94%
2018
92%
2020
100%

Goal 2020

Maintain: Keep the company listed with a score equivalent to the average score of the portfolio of the Corporate Sustainability Index (ISE);

For the score of the Dow Jones Emerging Markets Sustainability Indices (DJSI), keep Braskem listed with a score equivalent to that of the first company included in this global index.

Highlights 2018

Performance: All short-term actions under our action plan to mitigate potential human rights risks were completed. We also concluded the studies and relevant diagnoses that will enable future steps to be even more effective in mitigating these risks.

Recognition:Since 2012, Braskem was named a Lead Company by the UN Global Compact, and was recognized for its commitment to the compact in promoting sustainable development.

In 2018, Braskem remained in the gold category of the Ecovadis platform.

For the first time, the company figured on the “Change the World” list of Fortune magazine, in 14th position. The ranking features companies that most cause positive social impact through their actions.

In early 2019, Braskem was featured in the new edition of “The Sustainability Yearbook” published by RobecoSAM, and for the 14th straight time was included in the portfolio of the Corporate Sustainability Index (ISE) of B3.

Highlights 2016 - 2013

2016: Braskem conducted an assessment of the impacts on human rights, guided by the UN's guiding principles (Ruggie’s Framework). The work involved the company’s operations in Brazil, Mexico, United States and Germany, considering its entire value chain.

2015: The company became a signatory to the Women's Empowerment Principles (WEP), seeking to adopt and encourage measures that promote gender equality and women’s empowerment. This public commitment is one of the initiatives of Braskem's Diversity & Inclusion Program, which was launched this year and initially will focus on gender equality.

2014: Formation of over 50 classes for the Leaders for Sustainable Development Workshop, which was held to take another step towards engaging leaders and to strengthen their contribution to sustainability. A total of 922 people were trained in Brazil, Mexico and United States;

For the first time, Braskem was included in “The Sustainability Yearbook” published by RobecoSAM, an international investment consulting firm specializing in sustainability.

2013: This year, Braskem was recognized for its initiatives in sustainability by the following communication means: EXAME Sustainability Guide, Revista Amanhã magazine, Environmental Analysis and Época Negócios Yearbook.

Climate Change

Implementation

% Of Achieved Goals

2016
93%
2017
100%
2018
99%
2020
100%

Goal 2020

CO2: Change CO2 emissions intensity (tCO2e/t) to reach a carbon emissions intensity of 600 kg/ton.

Highlights 2018

Performance: The implementation of actions to mitigate climate risks during the year was in line with the planning, with the highlight the assessment of the efficacy of these actions in the calculation of residual risk. Our plan is to reach 100% implementation of all actions by 2023.

Initiatives: With the support of Ticket Log, in 2017, Braskem launched its participation in an initiative to generate carbon credits through the substitution of gasoline for ethanol in its corporate vehicle fleet. In 2018, Braskem became eligible for the monitoring stage after exceeding the minimum percentage of refueling using ethanol (95.46%).

Recognition: Braskem was one of 126 companies to figure on the A List ranking of the Carbon Disclosure Program (CDP). It also was included, for the seventh straight time, in the Carbon Efficient Index (ICO2) of B3 (Brazil) and, for the eighth straight time, in the gold category of the Brazil GHG Protocol Program.

Highlights 2016 - 2013

2016: Braskem was named for the first time an “A List” company in the CDP’s Investor Climate ranking and in its Supply Chain Climate ranking.

2015: The Company completed the study of climate risk management (physical, reputational, value chain) and opportunities for 100% of Braskem’s industrial plants, with the support of the Center for Sustainability Studies (GVces) and the National Space Research Institute (INPE).

2014: Investment of R$59 million in projects to reduce greenhouse gas (GHG) emissions, which captured savings estimated at R$4.5 million.

2013: Braskem attained a leading position in CDP Brasil with a 99% score in transparency and an “A” level in results

Energy Efficiency

Implementation

% Of Achieved Goals

2016
84%
2017
85%
2018
62%
2020
85%

Goal 2020

Energy: Reach energy consumption rate of 10.30 GJ/t;

Have a renewable energy use rate of 11.10%.

Highlights 2018

Projects: The first steps of a project focusing on energy efficiency were taken to modernize the power system of the plant at the ABC Petrochemical Complex, in São Paulo, for investment, jointly with Siemens, of R$600 million. The project will reduce power consumption and CO2 emissions, while increasing process safety and reliability.

Performance: 81% of electricity consumption came from renewable sources, considering self-declarations.

Projects:A commitment was made to invest in the acquisition of wind power, under a 20-year contract, to enable the expansion of the EDF Renewable wind farm in Bahia, strengthening the development of the renewable power industry in the state. The action will reduce Braskem’s emissions by 325,000 tons in the period.

Costs avoided with improvement in energy efficiency from 2002 to 2008 amounted to around US$1.7 billion.

Highlights 2016 - 2013

2016: Since 2002, around R$100 million has been invested to improve the efficiency of the electrical systems of the crackers Q1 BA and Q2 RS to help prevent interruptions in power supply.

2015: From 2012 to 2015, approximately R$55 million was invested in control and protection of the internal electrical system at the Camaçari-SISUP Complex in Bahia, to mitigate risks arising from potential interruptions or variations in power supply.

2014: The plant Q2 RS was the first unit in the country to install a piece of equipment used by only three other petrochemical units worldwide. With this initiative, the industrial unit already has obtained significant results, such as a reduction of 4.4 megawatts/hour in energy consumption and reduction in steam demand of 22 tons/hour, effectively saving 1.6 t/h of fuel oil.

2013: Improvement in productivity and energy optimization in the pyrolysis furnaces and boilers at crackers, which captured savings of around R$34.3 million.

Renewable Resources

Implementation

% Of Achieved Goals

2016
82%
2017
82%
2018
100%
2020
100%

Goal 2020

Production: Capacity to produce 200 kta of chemical basic products and thermoplastic resins from renewable feedstock.

Highlights 2018

Projects: Green EVA: In line with its strategy to strengthen renewable chemicals, Braskem launched a bio-based EVA resin (ethylene vinyl acetate copolymer) made from sugarcane. With applications in industries such as footwear, automotive, flexible packaging and transportation, its launch expands the company’s I’m greenTM portfolio.

Highlights 2016 - 2013

2016: R$7.1 million was invested in modernizing Green PE production, which reduced CO2 emissions by around 30%. A new wastewater reuse system was also installed in the plant.

2015: Green Polyethylene celebrated its fifth anniversary. Today, Braskem’s Green Plastic is used by more than 80 brands in countries in South and North America, Europe, Asia and Oceania.

2014: An international cooperation agreement with Amyris and Michelin to develop a new technological route for the production of isoprene from renewable feedstock was announced.

2013: Agreement signed with Genomatica, a biotechnology research company, to partner on the development of green butadiene.

Post-Consumer Waste

Implementation

% Of Achieved Goals

2016
1%
2017
1%
2018
2%
2020
100%

Goal 2020

Production: Capacity to produce and sell 20 kta of recycled resins.

Highlights 2018

Performance: A total of 434 tons of resin with recycled content was produced and sold in the year.

Circular Economy: Launch of Braskem’s Circular Economy positioning, which features eight global initiatives to drive the Circular Economy in the plastic converters production chain.

To support solutions to the problem of the improper disposal of solid waste in the environment, Braskem joined the “Alliance to End Plastic Waste,” which plans to invest US$1.5 billion over the next five years, and the Plastics Industry Forum – For a Cleaner Ocean, which was created by the Social And Environmental Institute For Plastics (Plastivida) and by the Oceanographic Institute of the University of São Paulo (USP).

Recycled resin: Through the Wecycle platform, promising results were achieved with the creation of a new recycled resin with superior quality and high recycled content made from rigid, post-consumer, polyethylene packaging.

Highlights 2016 - 2013

2016: Launch of the first Polypropylene and Polyethylene resins made from 100% recycled content, with the combined production volume of the two resins potentially reaching 50 tons per month.

2015: Launch of the Wecycle platform, which was created to foster businesses and initiatives that value plastic waste and to develop solutions, products and processes involving plastics recycling.

Chemical Recycling: Three chemical recycling technologies were selected for detailing and technical and economic assessment: Eco Energy, Michaelis and JBI.

National Solid Waste Policy (PNRS): An industry agreement for the reverse logistics of non-hazardous packaging was signed by 20 associations that combined account for 75% of the packaging produced in Brazil.

Local Development

Implementation

% Of Achieved Goals

2016
86%
2017
81%
2018
75%
2020
100%

Goal 2020

RepTrakTKM Pulse: Reach “excellent” level in citizenship dimension of RepTrakTKM Pulse for the Reputation Score (%).

Highlights 2018

Strategy: The Private Social Investment (ISP) strategy was revised and is now guided by three priorities: sustainable consumption and post-consumption; sustainable innovation and entrepreneurship; and local development.

Performance: Around 200,000 people were benefited in communities near various Braskem sites, with R$20.8 million invested in local and global actions with positive impacts on the community and environment.

Volunteering:In just one year, the Volunteer Program posted growth of 222% in the number of volunteers, 82% in the number of actions, 70% in donations and 251% in hours dedicated by volunteers.

Partnerships:Partnerships were signed for the collection and recycling of plastics: one with the football team Philadelphia Eagles, for the recycling of materials used at the Lincoln Financial Field and at the team’s training center, as well as an educational program focusing on public schools in the region; and the other with Mural Arts Philadelphia, the largest public art program in the United States, for recycling the plastics used to create murals; and a reverse logistics program for polypropylene plastic cups with the company Dinâmica Ambiental, with the support of companies such as Copobras, Altacoppo and Jaguar.

Highlights 2016 - 2013

2016: R$27.5 million was invested in social and environmental projects, mainly in private social investment projects:

- Ser+ Realizador: 3,444 collectors of recyclable materials were benefited, 813 of which improved their income;
- Fábrica de Florestas Institute: 88,407 seedlings were produced, and 46,628 were planted.
- Edukatu: the project registered significant improvement in its key numbers.

2015: Braskem invested around R$25.7 million in social projects this year. In the case of Private Social Investment Projects (ISP), R$5.4 million was invested; in the case of sponsorships (projects in the public interest), there was R$11.3 million in tax incentives (R$2.5 million in income tax and R$8.8 million in state VAT tax - ICMS) plus R$697,000 in direct investment; in the case of the Odebrecht Foundation, R$7 million was donated to the Program for Development and Growth Integrated with Sustainability (PDCIS) and R$1.3 million was donated by Team Members to the Tribute to the Future Program.

2014: Braskem invested R$21.3 million in social, environmental, cultural and sports projects in Brazil, divided among three major fronts: Private Social Investment (PSI) projects, sponsorships and donations to the Odebrecht Foundation (R$7 million).

2013: R$17.5 million was invested, R$7 million of which was donated to the Odebrecht Foundation; R$6.3 million was invested in Private Social Investment (ISP) Projects; R$3.8 million was invested in sponsorships; and R$400,000 corresponding to direct investment.