Investor Presentaiton
2016 Braskem | Annual Report
71
MAIN SUPPLIERS
CATEGORIES
Fossil fuel raw materials:
strategic to maintaining
Braskem's operations, fossil fuel
raw materials are among the
largest portion of the Company's
expenses with Suppliers. Among
these products are naphtha,
condensate, ethane, propane,
and HLR in Brazil, ethylene and
propylene in the United States
and Germany, and ethane in
Mexico. To ensure cost control
and supply continuity, Braskem
has contracts with specific
suppliers in all countries where
its operations are located.
Ethanol: Braskem's product
in the highest social and
environmental risk category,
ethanol has a more rigorous
management process than
the other inputs used by the
Company and the same is
true for its Suppliers. Thus,
Braskem works with a team
dedicated to these partners
to ensure compliance with
all processes and alignment
with the Company's safety
standards. When signing a
supply contract with Braskem,
all of these partners sign the
Code of Conduct for Ethanol
Suppliers, developed in 2010
by Braskem with the support
of Proforest. In 2016, this
code went through a review
that reinforced the relationship
model and the procedures
regarding the purchase of
Ethanol. In 2016, a total of
99.1% of ethanol came from
plants that signed the Code of
Conduct for Ethanol Suppliers,
a number above the established
goal of 90%. The remainder
was purchased in commodities
exchanges in order to meet
specific demands.
REVISED CODE OF CONDUCT
FOR ETHANOL SUPPLIERS
Following a process of continuous
improvement, in 2016 Braskem
promoted a review of its Code
of Conduct for Ethanol Suppliers,
ensuring its alignment with the
code applicable to all of Company's
Suppliers, according to the aspects
monitored by the Company:
slash and burn, biodiversity,
best environmental practices,
and human and labor rights.
This revision also sought greater
synergy with the Company's
Compliance Program and the
other codes, standards, and
protocols applied to the ethanol
industry. The work was carried
out by Proforest, an international
organization that works with the
management and sustainable
purchase of natural resources.
In addition, Braskem reinforced
its relationship model and
purchase procedures with
Suppliers. The Braskem
Responsible
Management
Structure of Ethanol will be
Responsible Ethanol
Management Structure
Braskem
periodically analyzed to ensure
that it keeps up with market
developments, incorporating the
lessons learned from audits and
changes in legislation, treaties,
and agreements related to the
sector. The new structure has an
area for mandatory requirements
that must be followed by the
Suppliers and also a section about
continuous improvement that
will allow Braskem to influence
its Suppliers through an agreed
upon action plan.
Code of Conduct for
Braskem Suppliers
Responsible Ethanol Management
Structure Braskem
In 2016, a total of 99.1% of ethanol came
from plants that signed the Code of Conduct
for Ethanol Suppliers, a number above the
established goal of 90%.
Compliance
Excellence
Audit Program + Robust ManagementView entire presentation