Annual Report 2011 Contents Presentation 3 United States and Europe Unit 39 Vision 2020 4 Investments 39 Odebrecht Corporate Technology (TEO) 4 Investment Grade 40 Message from the Directors 5 Indicators 40 Profile 7 Social development 42 Challenges for sustainable development 9 People Management 42 Strategy 11 Suppliers 55 Acquisitions in the USA and in Germany 11 Projects for the Communities 57 Cade approves acquisition of Quattor 12 Valuing Culture 59 New PVC factory in Alagoas 12 Political participation and the practice of citizenship 60 Butadiene, 30% more supply 13 Ethylene XXI, petrochemical complex in Mexico 13 Environmental responsibility 63 Project in Peru 14 Management in SSMA 64 Partnership in Venezuela 14 Expense in protection and environmental Comperj-Braskem 14 investments 65 Acrylic hub in partnership with Basf 14 Accidents and learning in Alagoas 66 The numbers of Braskem in 2011 15 Health and Occupational Safety 67 Prizes and recognition 15 Injuries and occupational diseases 68 International certifications 16 Accidents at work, the lowest rate in 10 years 69 History – timeline 17 Process Safety 69 Chemical safety 69 Business and Sustainable Development 18 Energy 71 Innovate to grow 22 Greenhouse Gases 73 Consolidation of the green products 22 GHG inventory 77 Visio, the service to Clients 23 Spills 78 Reputation Platform 24 Water consumption 79 Life Cycle 24 Emissions, effluents and wastes 80 Recycled Water 25 Investments and spending on environmental Naphtha from recycled plastic 25 protection 81 Responsibilities and management 25 Biodiversity 82 Opportunities 26 Voluntary Commitments 27 Challenges proposed by 2011 - results 28 About this Report 84 Analysis of materiality 84 Corporate Governance 29 Correlation between Braskem macro-objectives, Values and Principles 30 materiality and GRI 86 Practices of corporative governance 31 Contributions and challenges 91 Model of governance 32 Global Compact 92 Review of internal control 37 GRI Index 93 Other indicators of Corporative Governance 37 Guarantee Statement 99 Corporate Information 99 Economic development 38 Credits 101 Principal results 39 Polyolefins and Vinyls 39 Glossary 102 Basic Petrochemicals 39 Glossary of products 105 Contacts for questions, suggestions or criticism Presentation Mailing address: Avenida das Nações Unidas, 8.501 Centro Empresarial Eldorado, Pinheiros – 05425-070 São Paulo (SP) / Brasil. Emails: [email protected] [email protected] On Braskem´s website – www.braskem.com.br – there is a satisfaction consultation available on the 2011 annual report. The result obtained should orient the preparation of the 2012 report. Dear Reader, Braskem presents, in this Annual Report, the principal accom- mental dimension, the use of natural resources (water and plishments and challenges experienced in 2011 and related energy), the monitoring and the reduction of the consump- to its stakeholders, among them Shareholders, Customers, tion of those resources are addressed. Members, Communities where the industrial plants of the It is relevant to note that the graphics and tables published in Company are located, Suppliers, Governments, Financiers, this report with the legend “Braskem U.S.A.” do not include Academia (universities and teaching and research institutions) information about the polypropylene business of Dow Chemi- and society in general. In this publication you will find infor- cal acquired in July of 2011, with two industrial plants in the mation about the evolution of Braskem’s business strategy, United States and two in the Germany. Those data will be based on principles of sustainable development, and about consolidated and reported in the 2012 Annual report. the indicators that reflect performance in the period. For the fourth consecutive year, the model utilized to pre- The structure of this report addresses three dimensions of pare the report was that proposed by the Global Reporting sustainable development – economic, social and environ- Initiative (GRI), organization with headquarters in Amster- mental, and also the increase in cultural value and political dam, Holland, in which representatives of governments, participation, this last as a form of the practice of citizenship. companies and civil entities participate. The six principles Connected to those dimensions, themes material to the established by the GRI model were applied in this publica- management of the Company´s sustainability are reported. tion: balance, comparability, accuracy, frequency, clarity and In the social dimension, there are questions of health and reliability of information reported (read About this report). occupational safety, management of people, products and The complete Annual Report 2011, composed of text, graph- GRI 4.15 service. In the economic sphere, the most relevant subjects ics, photos and videos, is available on the portal of Braskem are the positive and negative points resulting from ( www.braskem.com.br ), in a version for tablets and also in GRI 2.1 Braskem´s activities in 2011, questions on the market and alternative for PDF. The printed publication presents a syn- GRI 2.4 competitiveness, besides the financial result. In the environ- thesis of the annual highlights for the year. mental perspective, the management of the environment, GRI 3.4 including disposal and reuse of materials, cleaner production To all, pleasant reading! and internal processes are highlighted. Also in the environ- 3 Vision 2020 Odebrecht Corporate Technology (TEO) To be the world leader in sustainable chemicals, by inno- Confidence in the people, valorization of the potential of vating to better serve people. human beings, capacity and desire to evolve are within the The actions of Braskem are aligned to the Vision 2020, principles of Odebrecht Corporate Technology. Centered in which incorporates the principles of sustainable develop- education and work, TEO establishes the fundamental ethics ment into its strategic management. These principles, re- and morals that guide the conduct of Odebrecht companies garding the way to conduct the productive and economic Members, Braskem among them. Presentation activity, while respecting inherent aspects of the environ- It also foresees a process of planned delegation, based on mental, economic, and social dimensions. Social, with re- partnership and confidence between leaders and followers. spect to the development of its Members and people in the How corporate culture promotes unity of thought and action localities where it has projects; economic commitment with of Members of the Organization in different businesses and the Shareholders, Customers and the perpetuity of the Com- countries in which they are present. With such fundamen- pany; and environment, respecting the ecological limits and tals, it is possible to walk together, satisfy the Customers, the need to conserve natural resources. aggregate value to the Shareholders’ equity by reinvesting Vision 2020 – To be the world leader of sustainable chem- the results achieved, generating wealth for society and pro- istry, by innovating to better serve people – was built from moting the development and welfare of the people. the understanding of the growth opportunities of the Com- pany, of the socio-environmental impacts caused by the petrochemical and chemical industry business and the con- tributions that the Company can give to some of the present socio-environmental challenges. In Business and Sustain- GRI 4.8 able Development you find more information on Vision GRI EC2 2020 and what has already been done for its fulfillment. COmmiTmEnT to susTainablE develOpmEnT The commitment of Braskem to sustainable develop- the populations of the Communities where it oper- ment is fully aligned with the principles and values ates, supporting local production chains, taking work that guide the Odebrecht Organization, and looks to as a factor of personal and professional development secure, in business actions, permanent respect for and of productive social inclusion. human beings, the environment and society. The Valorization of culture: contributing to the dissemi- objective is to generate wealth by means of work, nation of artistic expression and the preservation reinvestment of resources to promote continuous of the memory and history that distinguish nations business development, and contribution to the Com- and communities which we serve, and integration of munities where its teams work with proposals, sup- people of diverse backgrounds into the Organization port and partnership. with respect to their habits and customs... Over the years the concept has been improving, al- Political participation: active contribution with the ways integrating economic, social, environmental, governments and representatives of the society, in cultural and political aspects. The Organization’s Sus- the formulation of participatory public policies and tainability Policy is based on actions in this direction other initiatives that will promote the sustainable de- and mandates that the results be obtained in a syn- velopment of countries and regions where the com- ergistic manner, in the five following areas: panies of the Odebrecht Organization are present. Economic development: generating results for Environmental responsibility: rational use of natural clients, shareholders, suppliers and communities resources, use of clean technologies and renewable through the provision of services, manufacturing resources, efficient control of greenhouse gas emis- products necessary for