Integrated Report 2020 slide image

Integrated Report 2020

Braskem INTEGRATED REPORT 2020 CAPITAL PERFORMANCE A MESSAGE FROM THE BUSINESS LEADER BRASKEM STRATEGIC PLANNING ABOUT THE REPORT CREDITS ŵ (57) CARBON CAPTURE SASB RT-CH-110a.2 Based on our commitment to sustainable innovation, we entered a partnership with the University of Illinois, USA, to research alternatives for the development of ethylene from the capture and use of carbon dioxide (CO2) emitted in industrial processes, especially from the burning of fuels. The project is still in the early phase of development, and we will contribute with our know-how in the commercialization of raw materials and production of polymers. The final objective is to evaluate the possi- bility of capturing CO2 emitted in our operation and converting it into a raw material for the production of polymers. CARBON PRICING GRI 305-8 Since 2016, our Internal Carbon Pricing methodol- ogy "Shadow Price" supports our investment de- cision-making with a targeted approach to risk management that enables us to leverage attractive opportunities. In 2020, based on what we learned from this methodology in Brazil, a marginal abatement cost curve (MACC) was built with all potential mitigation initiatives or under implementation. The analysis led to an update of the carbon price and to the definition of a global pricing strategy based on "Implied Price" for 100% Braskem operations worldwide. The implemen- tation plan for this strategy includes assessing the ad- equacy of the existing tools, updating the documents guiding the process, training all members involved in the effort and defining KPIs for monitoring. 10 YEARS OF I'm green GRI 305 TM In 2020, we celebrated a decade since operations started in our green ethylene plant, which uses sug- arcane ethanol as a raw material to produce poly- ethylene. Under the I'm green ™ brand, this resin was recognized in 2020 by ECLAC as one of the most transformative initiatives in sustainable development in Latin America. Over its 10 years of existence, I'm green TM has avoid- ed the emission of at least 5.54 million tons of CO2, which is equivalent to more than a year of automotive emissions in the city of São Paulo. In addition, this resin captures up to 3.09 tons of carbon dioxide for each ton produced, contributing twice to reducing greenhouse gas emissions while maintaining the same quality per- formance as conventional resins. We have invested US$ 61 million in expanding biopoly- mer production to meet the fast-growing demand from society and our partners for sustainable prod- ucts in recent years. We will expand our production capacity for green ethylene in the Triunfo industrial unit in Rio Grande do Sul from 200,000 to 260,000 tons per year. The project aiming to keep Braskem at the forefront of the biopolymers market will start in 2021, with completion planned for the fourth quarter of 2022. Climate CHANGE adaptation plan In 2014, we developed a study to identify opportunities and climate risks in 100% of our operations. Based on that study, we created an adaptation plan with actions to mitigate or reduce all the most significant potential climate risks. Our goal is for all actions to be implemented by 2023. In 2020, we achieved 72% compliance with our Adaptation Plan, with emphasis on the completion of actions related to the threat of severe storms/electrical discharges in all units, which was the greatest potential impact mapped (in terms of the number of operations impacted). The next steps are to reassess the residual risk of all potential threats for which 100% of the actions were completed, strengthening the company's resilience in the face of potential extreme events.
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