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Investor Presentaiton

2016 Braskem | Annual Report Among the main initiatives to reduce emissions are: In southern Brazil, replaced part of the fossil fuel consumption with the additional purchase of electricity, implying reduced absolute emissions. Actions to optimize operational and energy efficiency. Energy reduction and/or recovery initiatives. BRASKEM IDESA GHG EMISSIONS -tCO2e/year (SCOPE 1) 58,641 1,474,227 BRASKEM IDESA CARBON INTENSITY -tCO2e/t 1,588 1,527 93 FIRST INVENTORY OF GHG EMISSIONS FROM OPERATIONS IN MEXICO Braskem Idesa's operations carry significant weight in the Company's results, with direct emissions (Scope 1) representing 14% of Braskem's total. Given the pre-start and start of operations, results for 2016 were lower than expected, since on some occasions the unit operated without its operational efficiency at full load. Because it started operating in 2016 and to its more modern technology, the unit in Mexico is expected to improve the Company's efficiency indexes after it is stabilized. On the other hand, it is worth mentioning that the team qualified itself, and carried out the emissions inventory including all categories of direct and indirect emissions, which will enable management and monitoring beginning at the plant's start-up phase. Due to the technology used in this new unit, the Company expects that its result in the coming years will be one of its best. Scope 1 Scope 2 MANAGING INDIRECT EMISSIONS Since 2011, Braskem has carried out a GHG emissions inventory of Scope 3 (indirect emissions) and has significantly evolved in actions to engage its supply chain and to identify initiatives to reduce these emissions, while also strengthening involvement in areas such as Procurement, Logistics, Services to People, Information Technology, acquisition of raw material, and others. In 2016, the Logistics area of the Polyolefins Business Unit (UNPOL), working together with the Sustainable Development area, created a tool enabling practical and rapid measurement of Greenhouse Gas Emissions in the logistics transport of finished products in any mode of transport. With this, it was easier to visualize the emissions of cargo transport by business, by type of transport, and even by Client. To make comparisons possible, three KPIs were created (emissions by transported volume; emissions by traveled ■Scope 1 Scope 1+ 2 distance; and emissions by volume per distance traveled "Comprehensive GHGE"), which calculate the relationship between the transported volumes and traveled distances. The chart on the next page shows the emissions by volume per traveled distance (Comprehensive GHGE) indicator, month by month. From now on, actions will be taken toward critically analyzing the results and identifying actions to reduce emissions.
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