Integrated Report 2020

Braskem INTEGRATED REPORT 2020 STRATEGIC PLANNING A MESSAGE FROM THE BUSINESS LEADER BRASKEM CAPITAL PERFORMANCE ABOUT THE REPORT CREDITS 20 > Risk Management GRI 102-15, 103-2, 103-3 | 307, 412 Risk assessment is an essential process at Braskem: it points to opportunities and reduces negative impacts as we strive to achieve our strategic objectives. Our risk management methodology is based on international references. We classify risks into four categories - strategic, oper- ational, financial and regulatory - based on a corporate Risk Dictionary. Risks are periodically evaluated by the company's executives and undergo a Regional and Global consolidation process, that considers their probability and potential impact. The result of this analysis is presented graphically on a Heat Map of priorities that is assessed and approved by the Board of Directors. Once approved, priority risks are addressed and monitored for mitigation and preparedness to deal with their possible adverse effects. In 2020, we continued to implement measures for the prevention and mitigation of the risks assessed as pri- orities and integrated into the Corporate Risks matrix. In line with our commitment to promoting best practices, we highlight here some risks that are being addressed and monitored by management: Image Risk of Plastic Climate change Sector Cyclicity Social and Environmental Issues Risk Description The growing global concern for the environment and growing trend to ban single-use plastic Potential Impacts •Difficulties in adapting our produc- tion processes in time, leading to insufficient recycling levels, inability to meet demand and consequent loss of market share, with adver- se impact on company image and reputation Responses Since 2018, we have openly supported the "Circular Economy" (reutilization and reuse of resources), with the following mitigation efforts: 1. Develop value chain, design of products and their applications 2. Engage with consumers 3. Assess life cycle and recycling rates to identify more sustainable options 4. Engage in partnerships to avoid plastic waste in the oceans Populations are showing increasing concern for the en- vironment, and governments are aligning with the Paris Agreement through public policies that encourage the reduction of greenhouse gas emissions • Stressed natural resources used in our production, such as water and stricter limits for emissions of carbon dioxide and equivalents Our Climate Adaptation and Mitigation Plan seeks to continually increase the safety of industrial activi- ties in response to extreme weather events and to mitigate the adverse impacts of our operations on the climate. In 2020 we announced our ambition to reduce GHG emissions by 15% by 2030 and to become carbon neutral by 2050, in line with the Paris Agreement. See more details in Water Security and Carbon Neu- tral discussions. Historically, international petrochemical products markets have had periods of limited supply leading to higher prices and profit margins followed by an ex- pansion in production capacity resulting in excess su- pply, shrinking prices and slimmer profit margins. Our net sales revenue and gross margin are increasingly influenced by global industry conditions over which we have no control, and which may impact Braskem operating results and financial situation Our company and operations are inherently exposed to environmental, health and safety hazards. As a result, our business is subject to strict environmental regulations, among others ⚫ Difficulties in adapting the business to petrochemical market volatility as we develop our corporate stra- tegies may lead to financial losses and/or impair our competitiveness: this remains a key concern for Braskem • Despite our environmental, health and safety standards, policies and controls, our operations remain subject to incidents or accidents that may adversely affect our business or reputation and result in significant environmental and social impacts Several actions based on three pillars help us mitigate the risks associated with downturns: 1. Diversification of raw materials with a focus on sustainability 2. Diversification of suppliers 3. Geographic diversification We continuously assess the potential impacts of our industrial operations and monitor potential scenarios that may affect the environment and surrounding communities together with our Board of Directors * See other risks factors in Form 20F 2020, Annual Reports

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