Risk identification and goal plan

During the generation of its Materiality Matrix, Braskem identified water as one of its 17 main risks. These risks were grouped into 10 Strategic Macro-Objectives monitored by the board from the company. Among them, the objective of water efficiency.

Based on the results of the analysis to generate its Materiality Matrix, Braskem identified water as one of the 17 main risks for the company. These 17 risks were grouped into 10 Strategic Macro-Objectives monitored by the company's board, including the water efficiency objective.

The objective is to periodically monitor its results and disclose them annually in the Annual Report, in addition to making this information available on the company's website. The macro-objective of water efficiency foresees that Braskem will be a reference in the chemical industry in the use of water, and currently the company already has, on average, a consumption and generation of effluents six times lower than the industries in the sector.

The company also sets annual consumption and effluent generation targets, based on its historical record, which has achieved compliance rates between 96% and 100% annually. In the case of water reuse, the company also set goals to gradually increase the percentage of water reuse, to 25% in 2020; 30% in 2025; and 50% in 2030. Furthermore, Water was defined as one of the three priority themes of Braskem's recently launched Global Sustainable Development Policy, along with Climate Change and Post-Consumption.

The company's Climate Change Adaptation Plan, created in partnership with ERM in 2016 and extremely important for the operationalization of macro-objectives, highlighted the risk of water scarcity as the main risk for the company's operations and remains the basis for mitigating impacts and initiate action plans.

The water risk affects four basins where Braskem operates, located in Rio de Janeiro, Bahia, Alagoas and São Paulo (Cubatão and Paulínia). For each of these basins, a specific risk study was carried out with the company Trucost, and an internal water price was calculated based on FGVces' DEVESE methodology. This information gave rise to Action Plans (2017/2018) that led to the development of studies of alternative water sources to neutralize risks in these basins.

For 2018, Braskem expects to make decisions about which alternative sources will be used, in order to begin the processes to, in the short to medium term, have the alternatives in operation, neutralizing risks and impacts.

• Achieve the aspirations proposed in the Global Sustainable Development Policy.
• Revalidate the Water Efficiency Macro Objective in renewing the company's risk and materiality matrix in 2019.
• Continue to achieve a high percentage of compliance with the Macro Water Efficiency Objective targets (above 90%).
• Approve action plans and strategies for the development of alternative water source projects for the regions of Bahia, Rio de Janeiro and Alagoas.

• Monitoring the percentage met of the Water Efficiency Macro Objective targets.
• Approval of action plans for investments in alternative water sources.
• Maturity analysis of the goals proposed in the Global Sustainable Development Policy.

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