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 (24) Our actions are based on technical studies carried out by independent specialists and comply with the recommendations submitted to competent authori- ties. The Company is implementing the actions so far approved by the ANM. The plans for closure of the wells submitted to ANM were prepared considering the best knowledge corpus available to Braskem specialists regarding appropriate measures to stabilize the geological phenomenon in the region. The plans will be monitored over time and may be adjusted according to the results obtained. Continuous monitoring is crucial to confirm the outcome of the current recommendations. In addi- tion, the completion of studies to confirm the natural filling of some cavities and sonar monitoring of cavity behavior may in the future indicate the need for addi- tional stabilization measures. IN 2020 we relocated 9,200 families from the neighborhoods affected by the phenomenon in Maceió - 100% of the priority areas have been vacated. Our provisions are based on current estimates and assumptions and may undergo future updates due to new facts and circumstances, including changes in the execution time and extension, effectiveness of action plans and completion of current and future studies with new recommendations from experts and other new developments. Braskem still faces and we may come to face several individual lawsuits filed by individuals or legal entities that are not served by the PCF or that disagree with the individual proposals for agreement, in addition to potential claims by public service concessionaires. As for the measures related to the mine closure plan, they are subject to AMN analysis and approval, mon- itoring of the results of the ongoing measures, as well as changes related to the dynamics of geological events. The Company is implementing the actions so far approved by the ANM. Under the Socio-Environmental Reparations Agree- ment, the actions to repair, mitigate or compensate for potential environmental impacts and damages to be financed by Braskem will be defined after the con- clusion of the Environmental Diagnosis to be carried out by a specialized and independent company. At the present time, we cannot predict the outcome of these Environmental Diagnostic studies or their potential implication in disbursements in addition to the ex- penses already provisioned by the Company. In addi- tion, the Socio-Environmental Reparations Agreement provides for the eventual adhesion of other entities, including the municipality of Maceió, which will be the subject of continued negotiations over the next few months. To date, we have not been able to predict the results of such negotiations or any associated costs. Thus, the Company cannot rule out future develop- ments related to the topic or its associated expens- es, and the costs to be incurred by Braskem may be different from its estimates. We are in discussions with insurers about the coverage of their insurance policies. The payment of indemnities will depend on the technical evaluation of the insur- ance coverage of these policies, given the complexity of the matter. Accordingly, no indemnity was recog- nized in Braskem's financial statements. + For other details on the signed agreements, please access our 2020 Financial Statements, note 26, by clicking here.
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