Creating Shared Value - 2020 Strategy & Results slide image

Creating Shared Value - 2020 Strategy & Results

CREATING SHARED VALUE RISKS & DRIVERS Braskem 1. Current feedstock mix strongly based on naphtha, leading to higher cost VS. gas-based competitors and could create exposure to carbon pricing mechanisms. 2. Challenges in the Brazilian economy environment: high tax burden, energy prices and infrastructure issues. 3. 4. 5. Third party claims supposed inappropriate payments. Increased water scarcity in some of the company's areas of operation (Bahia and São Paulo). Lack of appropriate post consumption solutions in many countries compromises image of plastics as a 'sustainable' material. ▸ Pioneer and global leader in renewable-based polymers, which can partially offset effect of carbon pricing. ▸ Use of plastic reduces GHG emissions. New investments focused on feedstock matrix and geographical diversification (Braskem Idesa: gas-based) ▸ Ability to increase customer loyalty and competitiveness through value chain enhancement initiatives: PICPlast, ICV Global Braskem is not under investigation ▸ Strong corporate culture and monitoring mechanisms (incl. SOX compliance) to ensure issues are identified and dealt with appropriately. Two independent law firms hired to carry out internal investigations on specific allegations being made. Voluntary process. ▸ Investment in water reuse projects to ensure adequate water supply without competing with domestic users. ▸ Developing recycling solutions: Wecycle, ser+ realizador, PICPlast
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