Integrated Report 2020 slide image

Integrated Report 2020

Braskem INTEGRATED REPORT 2020 STRATEGIC PLANNING A MESSAGE FROM THE BUSINESS LEADER BRASKEM CAPITAL PERFORMANCE ABOUT THE REPORT CREDITS ŵ <22 > Maceió Case GRI 103-2, 103-3 | 307, 413-2 Regarding the geological phenomenon in Maceió, we re- affirm our commitment to the safety and well-being of the communities, focusing on Braskem's full support to the affected families and on the technical assessment of the situation. For more information on the history of events and our performance, follow this link. Understanding the events In March 2018, there was a 2.4-degree earthquake on the Richter scale in certain neighborhoods in Maceió (AL), impacting the 35 rock salt wells we had explored there for at least 40 years. The salt wells belonged to Salgema, one of many companies incorporated into Braskem when it was founded in 2002.As a consequence of the earthquake, cracks appeared in buildings and streets. Soon after the event, we requested studies from independent specialized institutions to identify the causes of the geological phenomenon and indicate measures to be taken. We shut down the rock salt mining operation and cooperated with the necessary actions to evacuate risk areas and ensure the safety of the local population. Braskem actions In 2020, we signed agreements and amendments with the competent authorities to support the evacuation and compensation of local residents and property owners in the areas at risk and to protect and monitor the affected neighborhoods through our Financial Compensation and Relocation Support Program (PCF). This Program is based on the map of risk areas of the Civil Defense of Maceió, published in december 2020 and independent technical studies contracted by the company. By the end of 2020, we had relocated about 9,200 families and made about 3,500 compensation propos- als, with an acceptance rate of 99.7%. This enabled us to meet the 100% vacancy requirement in the priority areas established by the agreement. The evacuation of the remaining areas in still in progress, until we finish relocating around 15,000 families covered by the pro- gram. Additional measures were implemented, such as the Local Resident Central providing services for inhabi- tants, and Animal Shelter Program. We also made progress with the Salt Well Closure and Monitoring Plan, with ongoing actions related to wells under the recommended measures approved by Na- tional Mining Agency (ANM) and other urban structure measures such as demolition, security and janitorial ser- vices in the vacated areas. In 2020, we made significant progress in installing equipment to monitor salt wells and surrounding neighborhoods, and we also began to fill the first salt well with solid material. Finally, we signed the Second Amendment to the Residents' Compensation Agreement and the So- cio-Environmental Reparations Agreement with the competent authorities in December 2020. Under the additional provisions, the Company undertakes to: adopt the necessary measures for the stabilization of the wells monitoring of the soil; repair, mitigate or compensate for potential environmental impacts and damages resulting from rock salt mining in the city of Maceió; and repair, mitigate or compensate for po- tential socio-urban impacts and damages resulting from rock salt mining in the city of Maceió, allocating the total amount of R$ 1,280 million to the adoption of actions and measures in the evacuated areas as well as actions and measures aimed at urban mobility and social compensation. Yet, within the agreement with Federal Prosecutor Officer, we will destine the adicional amount of R$ 300 million to idemnify collective social and moral damages and eventual contingencies relat- ed to acitions in the vacated areas and urban mobility actions. Both agreements made it possible to extinguish public civil actions against Braskem.
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