Integrated Report 2020

Braskem INTEGRATED REPORT 2020 CAPITAL PERFORMANCE 52 A MESSAGE FROM THE BUSINESS LEADER BRASKEM STRATEGIC PLANNING ABOUT THE REPORT CREDITS Supply Chain GRI 102-9, 103-2, 103-3 | 204, 205, 308, 412, 414 In line with our principles of quality and commitment to environmental responsibility, our supplier man- agement is decentralized, with actions distributed in different areas guided by our Code of Conduct for Third Parties. This internal guideline was built on in- ternational reference documents, such as the United Nations Universal Declaration of Human Rights, and a series of resolutions recommended by the Inter- national Labor Organization. Contractors must abide by the Code, which describes their rights and duties regarding labor and socio-environmental practices, and suppliers classified as having the highest potential risk are subject to a due dilligence process. Several other initiatives focus on increasing efficiency, mitigating risks, improving user experience and finan- cial return, such as the implementation of our digital global procurement platform (Coupa), with more than 40,000 online quotations received from approximately 10,000 suppliers leading to 91% of all service acquisi- tions. We also introduced a new inventory manage- Б ment tool to optimize material inventory parameters and storage. Regarding decent work in the value chain, our aware- ness-raising actions reached 402 truck drivers, 24 car- riers and 102 team members in logistics and transpor- tation companies. The main objective was to prevent the sexual exploitation of children and adolescents on highways under the Program Na Mão Certa, from Child- hood Brazil. Along the same line, we approved a man- agement process to assess and monitor critical suppli- ers under more comprehensive human rights criteria. Aiming to engage our supply chain in sustainability issues, in 2020 we reaffirmed our partnership with CDP Supply Chain, a program that helps companies identify environmental risks and opportunities in their supply chain. We achieved more than 86% engagement for Climate and 77% for Water, the highest historical index in nine years, reaching 119 critical suppliers in Water and 186 critical suppliers in Climate. Partnership with CDP Supply Chain helps to engage supply chain in sustainability matters We also reviewed supplier pre-qualification processes and supplier SSMA assessments to consider the bid- der's safety performance as an important criterium in the selection of service providers. ETHANOL SUPPLIERS Ethanol suppliers go through a very strict admission process: our Responsible Ethanol Purchase Program is based on Compliance (mandatory requirements) and Excellence (continuous improvement). By joining the program, the supplier pledges to uphold high standards in integrity, environment, human rights of workers and communities, management of sugarcane suppliers, quality and efficiency. When joining the program, suppliers commit to uphold- ing our code of conduct regarding integrity, environment, human rights for workers and communities, sugarcane supplier management, quality and efficiency. They must also agree to audit in their mills, including annual visits by sampling. Our close dialogue with ethanol suppliers continued in 2020; we carried out remote checks on Bon- sucro certification reports while independent monitors audited the implementation of their management pro- grams to ensure diligent management of ethanol suppli- ers, especially with regard to socio-environmental issues. 4 units were remotely verified, which represented 31.69% of the volume supplied in the year.

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