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.
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For other details on the signed
agreements, please access our
2020 Financial Statements,
note 26, by clicking here.View entire presentation