material issues assessment -...

Braskem periodically assesses the materiality, that is, the relevance, of sustainability issues in order to

structure its strategy for the company’s contribution to sustainable development. In 2013, this evaluation was

renewed based on a structured stakeholder consultation process, summarized in the following page.

With the aspects listed by the Global Reporting Initiative Reporting Guidelines (GRI, considering both G3 e

G4) as a starting point, we analysed each aspect to define how they should be analysed. We came to the

conclusion that some aspects could be aggregated (e.g. safe use of products includes customer health and

safety and product labelling) and others did not require evaluation, either because they are issues in which we

did not identify any involvement of our value chain (e.g. indigineous rights) or they are considered basic

obligations, such as meeting legal requirements. Hence we reached 29 aspects to be analysed.

The GRI aspects were simplified for the consultation process as follows:

Item 12 – Freedom of association - includes “collective bargaining”;

Item 15 - Equal opportunities - includes “non discrimination” and “diversity”;

Item 17 – Safe use of products - includes “client health and safety” and “product labeling”;

Item 21 - Community investment and relationships - includes “indirect economic impacts”;

Item 29 – Transparency and integrity - includes “customer privacy” and “responsible marketing”;

The following GRI aspects were not included as they were considered to be basic obligations, i.e. issues

where prioritization is not necessary: “child labor”, “forced labor” and “compliance”;

The GRI aspect “indigineous rights” was not included as no interaction between Braskem’s value chain and

these communities was identified;

The GRI aspect “environmental investments” was not included as it is a mere monetization of environmental

improvement initiatives.

Material issues assessment

29 Aspects (based on GRI*)

17 Material Aspects

10 Macro-objectives

* Global Reporting Initiative (G3 and G4); international standard for matters regarding the promotion of sustainability. ** Supported by ERM, specialized sustainability consultancy *** Supported by Reputation Institute, specialized stakeholder consultation consultancy.

Workshops with internal and external

stakeholders**

Consolidation

and Results**

Online survey*** Interviews with leaders**

• 35 interviews with Braskem’s senior leadership (all vice presidents and Directors responsible for areas with high sustainability influence)

• 2,001 responses to the online survey, from Team Members, Customers, Suppliers, Academia, Local Groups (NGOs, Local Communities, Trade Associations), Opinion Formers (Government, Press), and General Public.

• 3 workshops with Team Members (2 in Sao Paulo, 1 in Salvador)

• 4 workshops with external stakeholders (in Triunfo, Maceió, Salvador, and Sao Paulo)

• 1 workshop in the U.S.A. (with internal and external stakeholders)

• 6 meetings with Financiers, Government, and Local Communities in Mexico.

• 1 workshop, involving the Sustainable Development, People & Organization (equivalent to HR), and Strategic Planning teams.

Braskem stakeholder consultation process

The result of this process was registered in the Materiality Matrix on the following page, which plots the extent

of Braskem’s impact in the matter in question (assessed using data regarding the context in which Braskem

operates and our contribution to it) versus the relevance of each aspect to our stakeholders (ponderation of the

ranking each aspect attained in the different consultations performed). Braskem’s level of control over each

aspect was also assessed, to help us understand how to act on the matter.

Of the 29 aspects evaluated, 17 were found to be material, as they were located in the critical and high

materiality quadrants. These 17 aspects were in turn consolidated into 10 macro objectives considered

strategic to Braskem’s contribution to sustainable development. To learn more about Braskem’s results and

targets for each macro objective, visit http://www.braskem.com.br/site.aspx/Goals-Initiatives-Eng

Braskem Materiality Analysis

http://www.braskem.com.br/site.aspx/Goals-Initiatives-Eng







LEV

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HIG

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IU

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LO

W

IR

RELEV

AN

T

IRRELEVANT LOW MEDIUM HIGH

LEVEL OF IMPORTANCE TO STAKEHOLDERS

LEVEL OF BRASKEM'S CONTROL OR INFLUENCE OVER THE ASPECT

MINIMAL LOW MEDIUM STRONG

MATERIALITY

CRITICAL

HIGH

MODERATE

LOW

EN

VIR

ON

ME

NT

AL

1. Non-renewable resources

2. Water

3. Climate Change and Energy

4. Air

5. Waste

6. Transport

7. Biodiversity (a = Mexico)

8. Post-consumption

9. Suppliers - Environmental Management

10. Product development –Environmental

SO

CIA

L

11. Jobs (b = USA)

12. Freedom of Association

13. Health and safety

14. Training and Career

15. Equal opportunities

16. Company security guards

17. Safe use of Braskem’s products

18. Grievancmechanismse

19. Suppliers - Social Management

EC

ON

OM

IC

AN

D G

OV

ER

NA

NC

E

20. Economic Performance

21. Community investment and relationships

22. Receipt of government assistance

23. Local suppliers

24. Free competition

25. Fraud and corruption

26. Contribution to public policy

27. Product development - Social

28. Labor from local communities

29. Transparency and integrity

1 2

3

4

5

6

8

9

10 11

12

13

14 15 16

17

18 19

20

21

22

23

24

25

26

27 28

29

7

11b

7a

Braskem Materiality Matrix Material issues

Braskem Materiality Criteria LEV

EL O

F B

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SK

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'S I

MP

AC

T

Braskem’s impact and/or that of its value chain is a major factor in the topic’s outcome. The topic is relevant

on a global scale, or, if it is local, Braskem makes relevant contributions in the majority of its operating

regions.

HIGH 4 MODERATE HIGH CRITICAL CRITICAL

Braskem’s impact and/or that of its value chain contributes to the topic, but Braskem/its value chain is one of the largest agents only in some of its regions of

operation.

MEDIUM 3 LOW MODERATE HIGH CRITICAL

Braskem’s impact and/or that of its value chain influences the topic outcome, but Braskem /its chain is at most a medium-sized agent in its operating regions .

LOW 2 LOW LOW MODERATE HIGH

Braskem’s impact and/or that of its value chain does not change the outcome of the topic.

IRRELEVANT 1 LOW LOW LOW MODERATE

1 2 3 4

IRRELEVANT LOW MEDIUM HIGH

The topic is irrelevant to internal and

external stakeholders.

The topic is of low relevance to internal

and external stakeholders.

The topic is of medium relevance to internal and external stakeholders, or

of high relevance to a specific stakeholder

group.

The topic is of high relevance to internal and

external stakeholders.



1 2 3 4


Braskem has no significant control

or influence in regard to this

topic. The result depends on the

actions of others.

Braskem does not control the matter, but can influence its stakeholders. The

result depends more on others than on

Braskem.

Braskem controls the matter in its operations

and/or significantly influences its

stakeholders. The result depends on the collective

measures taken by the parties.

Braskem controls the

matter and is the main

responsible for the

outcome.

Braskem Materiality Analysis LEV

EL O

F B

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'S I

MP

AC

T

(4

) H

IG

H

(3

) M

ED

IU

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(2

) L

OW

(1

) I

RR

ELE

V

AN

T

(1) IRRELE VANT

(2) LOW (3) MEDIUM (4) HIGH




1.

NO

N-R

EN

EW

AB

LE R

ES

OU

RC

ES

Im

port

ance Medium (3):

Topic ranking in the consultations: • 10th per Braskem Leaders (3) • 2nd in online survey (4) • Prioritized in 8 out of 8 workshops

with an average score of 3.3 (3)

Im

pact High (4):

• Braskem is the largest industrial consumer of natural gas in Brazil

• Braskem is the largest consumer of naphtha in Brazil

Con

trol

Medium (3): • Making products from renewable

sources is controlled by Braskem, but markets define acceptance (3)

• Prioritized in 8 out of 8 workshops with an average score of 3.4 (3)

2.

WA

TER

Im

porta

nce

Medium (3): Topic ranking in the consultations: • 11th per Braskem Leaders (3) • 7th in online survey (4) • Prioritized in 8 out of 8 workshops


Im

pact

High (4): • Braskem is among the 5 largest

consumers of water in the states of Bahia, Rio Grande do Sul, and Alagoas (BA, RS, AL)

Con

trol

Medium (3): • Braskem controls the consumption,

but not the availability of water (3) • Prioritized in 8 out of 8 workshops


3.

CLIM

ATE C

HA

NG

E A

ND

EN

ER

GY

Im

porta

nce

Low (2): Topic ranking in the consultations: • 16th per Braskem Leaders (2) • 14th in online survey (3) • Prioritized in 5 out of 8 workshops

with an average score of 3.3 (3) Im

pact


industrial consumers of energy and emitters of greenhouse gas emissions in Brazil

Con

trol

Medium (3): • Control depends on other parties

(suppliers of renewables) and on government regulation (3)


4.

AIR

Im

porta

nce



Im

pact

High (4): • Among the 5 largest sources of

industrial atmospheric emissions in Maceio, Camacari, and Triunfo;

• In Triunfo, responsible for over 90% of SO2, NOx, and Particulate Matter

Con

trol

Strong (4): • Braskem controls its SOx, NOx, and

PM emissions (4) • Prioritized in 7 out of 8 workshops


MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

3 4

1 2

LEV

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AC

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(4

) H

IG

H

(3

) M

ED

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(2

) L

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(1

) I

RR

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(1) IRRELE VANT





5.

WA

STE

Im

porta

nce



Im

pact


generators of industrial waste in Alagoas, Bahia, and Rio Grande do Sul.

• The chemical industry is the largest source of hazardous waste in Brazil.

Con

trol Strong (4):

• Braskem is 100% responsible for the waste produced in its operations (4)


6.

TR

AN

SP

OR

T

Im

porta

nce

Irrelevant (1): Topic ranking in the consultations: • 28th per Braskem Leaders (1) • 29th in online survey (1) • Was not prioritized in the

workshops

Im

pact

Low (2): • Although we transport hazardous

products, our operation makes up less than 10% of the quantity of product transported in São Paulo (for example) (2)

Con

trol

Low (2): • A sizeable part of product transport

is contracted by our Clients (2) • Was not prioritized in the workshops

7.

BIO

DIV

ER

SIT

Y Im

porta

nce

Low (2), except Mexico (4): Topic ranking in the consultations: • 29th per Braskem Leaders (1) • 20th in online survey (2) • Prioritized in the Alagoas workshop

with a high score - 3.8 (4) • 7a = high importance in Mexico: 4th

in the survey and cited in 4 of 6 meetings.

Im

pact

Irrelevant (1), except Mexico (2): • Braskem has no operational

facilities in areas of high value in biodiversity, with the exception of Mexico (7a), where an endangered species was relocated.

Con

trol

Medium (3): • Braskem is located at industrial

sites and has control through contracts (3)

• Prioritized in Alagoas workshop with an average score of 3 (3)

8.

PO

ST-C

ON

SU

MP

TIO

N

Im

porta

nce

Medium (3): Topic ranking in the consultations: • 3rd per Braskem Leaders (4) • 18th in online survey (2) • Prioritized in 7 out of 8 workshops


Im

pact

High (4): • Braskem is the largest producer of

thermoplastic resins in Brazil; the rate of mechanical recycling of post-consumption plastic in Brazil is 21%, only 52% of waste receives appropriate treatment.

Con

trol

Low (2): • Multiple parties are involved in the

waste treatment chain (citizens, govern’t, treatment companies) (2)


MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

5

6

8

7

7a


LEV

EL O

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'S I

MP

AC

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(4

) H

IG

H

(3

) M

ED

IU

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(2

) L

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(1

) I

RR

ELE

V

AN

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(1) IRRELE VANT





9.

SU

PP

LIER

S –

EN

VIR

ON

MEN

TA

L

MA

NA

GEM

EN

T

Im

porta

nce

Low (2): Topic ranking in the consultations: • 23rd per Braskem Leaders (1) • 28th in online survey (1) • Prioritized in 1 out of 8 workshops


Im

pact Medium (3):

• Braskem is among the 10 largest buyers of hazardous products. Petrobras, however, is one of the main suppliers.

Con

trol

Low (2): • Braskem can make contractual

requirements to influence suppliers (except naphtha) (2)


10

. P

RO

DU

CT D

EV

ELO

P.–

EN

VIR

ON

MEN

T

Im

porta

nce

High (4): Topic ranking in the consultations: • 4th per Braskem Leaders (4) • 3rd in online survey (4) • Prioritized in 6 out of 8 workshops


Im

pact

Medium (3): • 18% of Braskem's polymer

revenue comes from products developed in the last 3 years

• Other chains have more innovation potential (technology, telecommunications, automobiles)

Con

trol Medium (3):

• Development also depends on suppliers and customers (3)


11

. JO

BS

Im

porta

nce

Low (2), except for the USA (4): Topic ranking in the consultations: • 18th per Braskem Leaders (2) • 24th in online survey (1) • Prioritized in 3 out of 8 workshops

with an average score of 3.5 (4) • 11b = considered one of the most

important topics at the USA workshop

Im

pact

Medium (3): • Braskem is not labor-intensive (less

than 0.1% of industrial jobs in Brazil) • The plastics chain, however, generates

around 5% of industrial jobs in Brazil

Con

trol

Medium (3): • Braskem does not control job

generation in its suppliers or customers, but can influence their growth (2)


12

. FR

EED

OM

OF A

SS

OC

IA

TIO

N

Im

porta

nce Medium (3):

Topic ranking in the consultations: • 24th per Braskem Leaders (1) • 25th in online survey overall (1),

but 1st per Team Members (4) • Was not prioritized in the

workshops

Im

pact

Low (2): • Braskem is not labor-intensive • Considering indirect jobs also, it

generates less than 0.5% of industrial jobs in Brazil.

Con

trol

Strong (4): • Braskem controls the topic in its

operations, including for supervised contractors, through contracts (4)

MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

9 10 11

12 11b


LEV

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(4

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(3

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(1

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(1) IRRELE VANT





13

. H

EA

LTH

AN

D S

AFETY

Im

porta

nce High (4):

Topic ranking in the consultations: • 1st per Braskem Leaders (4) • 1st in online survey (4) • Prioritized in 7 out of 8 workshops


Im

pact

High (4): • Braskem is the largest producer in

the country of some toxic products • Due to the stocks of hazardous

products, there are high risks

Con

trol

Strong (4): • Braskem has total control over

these risks (4) • Prioritized in 7 out of 8 workshops


14

. TR

AIN

IN

G A

ND

CA

REER

Im

porta

nce Medium (3):

Topic ranking in the consultations: • 9th per Braskem Leaders (3) • 6th in online survey (4) • Prioritized in 1 workshop with

Team Members (Bahia), with an average score of 3.0 (3)

Im

pact Irrelevant (1):

• Braskem is not labor-intensive. Less than 0.1% of industrial jobs in Brazil

Con

trol

Strong (4): • Braskem is able to control this

matter (4) • Prioritized in 1 internal workshop

(Bahia), with a high score of 3.8 (4)

15

. EQ

UA

L O

PP

OR

TU

NITIES

Im

porta

nce

Medium (3): Topic ranking in the consultations: • 13th per Braskem Leaders (3) • 4th in online survey (4) • Was not prioritized in the

workshops Im

pact

Irrelevant (1): • Braskem is not labor-intensive.

Less than 0.1% of industrial jobs in Brazil

Con

trol

Strong (4): • Braskem can control this matter

(4)

16

. C

OM

PA

NY

SEC

UR

ITY

GU

AR

DS

Im

porta

nce

Irrelevant (1): Topic ranking in the consultations: • 26th per Braskem Leaders (1) • 27th in online survey (1) • Was not prioritized in

the workshops

Im

pact

Irrelevant (1): • Braskem's expenditures on private

security are less than 1% of this market.

Con

trol

Strong (4): • Braskem, by means of its contracts,

is able to control this matter (4)

MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

13

14 15 16


LEV

EL O

F B

RA

SK

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'S I

MP

AC

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(4

) H

IG

H

(3

) M

ED

IU

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(2

) L

OW

(1

) I

RR

ELE

V

AN

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(1) IRRELE VANT





17

. S

AFE U

SE O

F B

RA

SK

EM

’S P

RO

DU

CTS

Im

porta

nce



Im

pact

Medium (3): • Braskem produces and sells some

hazardous and toxic products, but handling takes place in industrial settings, which are more controlled

Con

trol

Low (2): • The safe use of chemical products

depends on suppliers and customers (2)


18

. G

RIEV

AN

CE M

EC

HA

NIS

MS

Im

porta

nce

Irrelevant (1): Topic ranking in the consultations: • 19th per Braskem Leaders (2) • 22nd in online survey (1) • Was not prioritized in the

workshops

Im

pact

Low (2): • Braskem is a B2B company, and

therefore has a lower number of interactions than B2C companies

Con

trol

Strong (4): • Braskem is able to control the

matter (4)

19

. S

UP

PLIER

S –

SO

CIA

L M

AN

AG

EM

EN

T

Im

porta

nce Low (2):

Topic ranking in the consultations: • 17th per Braskem Leaders (2) • 23rd in online survey (1) • Prioritized in 1 external workshop

(São Paulo) with a high score of 3.6 (4)

Im

pact

Low (2): • Braskem is not a large indirect

employer. Our supply chain would generate 3% of industrial jobs in Brazil at most.

Con

trol

Low (2): • Braskem can make contractual

requirements to influence suppliers (excluding naphtha) (2)


20

. EC

ON

OM

IC

PER

FO

RM

AN

CE

Im

porta

nce

Medium (3): Topic ranking in the consultations: • 2nd per Braskem Leaders (4) • 10th in online survey (3) • Prioritized in 4 out of 8 workshops


Im

pact

Medium (3): • Braskem is the 15th largest

company by EBITDA in Brazil and number 1 in the industry.

• Braskem is the 21st largest chemical company in the world

Con

trol

Medium (3): • Braskem controls some variables,

but there are numerous others that define profit (3)


MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

17

18 19

20


LEV

EL O

F B

RA

SK

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'S I

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AC

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(4

) H

IG

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(3

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(2

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(1

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(1) IRRELE VANT





21

. C

OM

MU

NITY

IN

VES

TM

EN

TS

&

RELA

TIO

NS

HIP

S

Im

porta

nce

Low (2): Topic ranking in the consultations: • 27th per Braskem Leaders (1) • 17th online survey (2) • Prioritized in 6 out of 8 workshops


Im

pact High (4):

• Braskem is likely among the 10 largest industrial investors in community benefits in Brazil

Con

trol


matter (4) • Prioritized in 6 out of 8 workshops


22

. R

EC

EIP

T O

F G

OV

ER

NM

EN

T

AS

SIS

TA

NC

E I

mp

orta

nce

Irrelevant (1): Topic ranking in the consultations: • 25th per Braskem Leaders (1) • 26th online survey (1) • Was not prioritized in the

workshops

Im

pact Medium (3):

• Braskem is the 49th largest taxpayer in Brazil

Con

trol

Low (2): • The most Braskem can do is

request the benefit, but the decision is beyond Braskem (2)

23

. L

OC

AL S

UP

PLIER

S

Im

porta

nce Low (2):

Topic ranking in the consultations: • 15th per Braskem Leaders (2) • 12th online survey (3) • Prioritized in 1 internal workshop

(Bahia) with an average score of 3.0 (3)

Im

pact

High (4): • Braskem is not a large generator of

indirect employment, but can be very important for the cities in which it has operations. Example: Maceio, Camacari, Triunfo, Duque de Caxias etc.

Con

trol

Low (2): • Braskem may wish to engage, but

local suppliers may not exist (2) • Prioritized in 1 out of 8 workshops

with an average score of 3 (3)

24

. FR

EE C

OM

PETITIO

N

Im

porta

nce Medium (3):

Topic ranking in the consultations: • 22dnper Braskem Leaders (2) • 21st online survey (2) • 9th for customers in the survey (3) • Was not prioritized in the

workshops

Im

pact

Medium (3): • Braskem is the 21st largest

chemical company in the world. • Braskem is the largest resin

producer in the Americas

Con

trol


matter (4)

MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

21

22

23

24


LEV

EL O

F B

RA

SK

EM

'S I

MP

AC

T

(4

) H

IG

H

(3

) M

ED

IU

M

(2

) L

OW

(1

) I

RR

ELE

V

AN

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(1) IRRELE VANT





25

. FR

AU

D A

ND

CO

RR

UP

TIO

N

Im

porta

nce

Low (2): Topic ranking in the consultations: • 20th per Braskem Leaders (2) • 16th in online survey (2) • Was not prioritized in the

workshops

Im

pact Medium (3):

• Braskem is the 7th largest private company in Brazil, but it does not focus on trade relations with the government

Con

trol

Medium (3): • Braskem can define a series of

procedures to reduce the risks of illicit negotiations, but they can happen regardless (3)

26

. C

ON

TR

IB

UTIO

N T

O P

UB

LIC

PO

LIC

Y

Im

porta

nce

High (4): Topic ranking in the consultations: • 7th per Braskem Leaders (4) • 19th online survey (2) • Prioritized in 2 out of 8 workshops


Im

pact

High (4): • Braskem is the 2nd largest chemical

manufacturer in Brazil revenue-wise

• Braskem is the 49th largest taxpayer in Brazil

Con

trol

Low (2): • Braskem may attempt to have an

influence, but decisions are beyond its control (2)


27

. P

RO

DU

CT D

EV

ELO

PM

EN

T –

SO

CIA

L

Im

porta

nce


with an average score of 3.5 (4) Im

pact

High (4): • Plastic components reduce costs of

final products • Other chains have more innovation

potential (technology, telecommunications, automobiles)

Con

trol

Medium (3): • Development also depends on

suppliers and customers (3) • Prioritized in 2 out of 8 workshops

with a high score of 3.5 (4)

28

. LA

BO

R F

RO

M L

OC

AL C

OM

MU

NITIES

Im

porta

nce Medium (3):

Topic ranking in the consultations: • 21st per Braskem Leaders (2) • 15th in online survey (2) • 5th for Team Members (4) • Prioritized in 3 out of 8 workshops


Im

pact

High (4): • The plastics chain generates

around 5% of the industrial jobs in Brazil, which, if applied to a location, may be very relevant

Con

trol

Medium (3): • The participation of other parties is

required to train the local workforce.


MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

25

26 27 28


LEV

EL O

F B

RA

SK

EM

'S I

MP

AC

T

(4

) H

IG

H

(3

) M

ED

IU

M

(2

) L

OW

(1

) I

RR

ELE

V

AN

T

(1) IRRELE VANT





29

. TR

AN

SP

AR

EN

CY

AN

D I

NTEG

RITY

Im

porta

nce



Im

pact Medium (3):

• Braskem is the 7th largest private company in Brazil

• Braskem does not deal B2C, which reduces its exposure

Con

trol


matter (4) • Prioritized in 5 out of 8 workshops


MA

TER

IA

LITY

CRITICAL

HIGH

MODERATE

LOW

29


material issues assessment -...

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