Braskem S A : Integrated Report 2023

Summary

01	About this
Report
02	Messages and
Highlights of 2023
Message from the business leader
	Message from the chairman
	of the board of directors
	Key figures of 2023
03	Braskem
Who we are
Our supply chain
	Our products
	Business model
	Our sustainable
	development journey
	Risk management

04

05

06

07

Maceió case

Braskem's commitments with Maceió

Business performance

Performance

Braskem's strategy

Corporate strategy 2030

Growth avenues

Traditional business Bio-based

Recycling (circular economy)

08	Strategic pillars	10
Sustainability
Productivity and competitiveness
	Growth and diversification
	Innovation
09	Foundations
PeopleSafety	11
	Governance

Capital performance

Human

Social and Relationship

Financial

Natural

Manufactured

Intellectual

Appendix

GRI content summary SASB content summary Assurance letter

About this Report

GRI 2-1, GRI 2-2, GRI 2-3, GRI 2-4, GRI 2-5, GRI 2-14

Braskem is a publicly traded company incorporated under Brazilian laws, with its administrative headquarters in the city of Camaçari (Brazil) and global operations across four continents.

We publish our Integrated Report 2023, drawn up with the participation of our executives and directors, meeting the standards of the Integrated Reporting Framework (IR) and in compliance with the requirements of the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and the GHG Protocol Program, also in compliance with Resolution No. 14 of the Securities and Exchange Commission (Comissão de Valores Mobiliários, CVM), dated December 9, 2020. The Report has been subjected to limited assurance conducted by independent auditor KPMG.

The 2023 Integrated Report covers the period from January 1 to December 31, 2023. It includes those companies over which Braskem has operational control and/or those companies whose information forms part of the consolidated information within its Financial Statements, excluding the subsidiaries Cetrel S.A., Wise Plásticos Ltda. and ER Plastics B.V., and their subsidiaries for social and environmental indicators. Cetrel S.A. and its subsidiaries were only included in greenhouse gases (GHG) emission indicators.

1. According to the Brazilian GHG Protocol Program, in the operational control approach, an organization is responsible for 100% of the GHG emissions of the units over which it has operational control, not responsible for those arising from operations in which it only has corporate participation.

For the fourth consecutive year, we are presenting to our stakeholders a report with concise and measurable information, observing best practices in corporate governance and sustainability. In this edition, we have revised the reporting structure to reinforce the integration of our value creation strategy and the various kinds of capital (financial, human, intellectual, natural, manufactured, and social and relationship) relevant to our business, based on the material themes for the company.

In order to keep the document concise, we highlight some of the indicators, and we also store all public data in our Indicator Center. Changes to previously published data are presented throughout this report.

We want to hear from you!

Questions, comments, and

suggestions can be directed to [e-mail] or www.braskem.com.br/ usa/contact-us.

3 | Integrated Report 2023

3 | Relatório Integrado 2023

Message from the business leader

GRI 2-22

Dear readers,

Braskem has clear objectives for the future and we will achieve them by strengthening relationships of trust with members, customers, suppliers, partners, sha- reholders, investors and many other interested parties, who are fundamental in this journey. We believe that the development potential of human beings and their relationships, combined with technology and innovation, are key elements in the transition to a circular, carbon-neutral future.

In the year 2023, we observed a challenging petrochemical scenario. The increase in the supply of products with the continuous start-up of new polyethylene and polypropylene capacities, mainly in the United States and China, in addition to the lower level of global consumption, impacted chemical and petrochemical spreads in the international market, influencing the industry profitability globally.

In this context, we focused our efforts on actions to preserve the company's financial health, prioritizing high-value-added investments in our growth avenues. We also advance in initiatives that seek to leverage our business towards a resilient, competitive, innovative and sustainable future, with a close eye on human beings.

4 | Integrated Report 2023

Roberto Bischoff

Braskem business leader

Non-negotiable values

Safety and well-being of people in our actions are non-negotiable values for us. We ended the year with an accident frequency of

1.08 per million man-hours worked, in line with the performance of the best companies in the sector in the world. In 2023, we strengthened our Human Reliability Program, training an addi- tional 1,900 people on workplace safety.

The efforts of our diversity, equity and inclusion program have led to the maintenance of 33% women in leadership and the preservation of 33% black members globally. This is due to the various affirmative and training actions that we have implemented in all the regions we operate, with emphasis on Global Diversity Week, which had more than 9,600 participants and addressed topics such as gender inequality, racial issues, LGBTQIA+ issues and multiculturalism. As a result of the program's initiatives, as well as the comprehensive health programs, we maintained a good level of member perception of aspects of the work environment.

Braskem's priority is people's safety, including the communities surrounding our operations. From 2019 to the present, we have reinforced our commitment to Maceió and its citizens. We recognize the social impact caused and, therefore, four years ago we focused on the preventive relocation of vacated areas together with the authorities and signed agreements to develop a set of actions and programs to repair, mitigate and compensate for the effects of subsidence of the soil in Maceió. To date, 99.6% of families have already been relocated from the areas planned by the Municipal Civil Defense in 2020, and around 99.8% of residents and traders have also received compensation proposals, 95% of which have already been paid. At the end of 2023, after an atypical microseismic activity in Maceió, there was an abrupt rise to the surface of one of the cavities we monitored, with direct impacts restricted to its location, within the protection area defined together with the authorities, which was already unoccupied since April 2020.

Long-term value creation

Our value creation journey is guided by three avenues of growth: traditional business, renewables and circular economy. In 2023, we made progress in each of them, with the implementation of investments and partnerships already established. I highlight here the completion of the project to expand 30% of bioethene capacity in Brazil, which added 60 thousand tons per year to production.

In the traditional business avenue, we aim to decarbonize current assets, achieving a 15% reduction in greenhouse gas (GHG) emissions, scopes 1 and 2, by 2030(1). In 2023, we implemented several initiatives that totaled 333 thousand tons per year in emissions reductions from 2024 onwards. These efforts, added to a lower operating rate of our operations in 2023, resulted in emissions volume of around 9.9 million tons of GHG (scopes 1 and 2), with 80% of the electrical energy purchased coming from renewable or clean sources.

1. The base year is the average volume of GHG emissions, scopes 1 and 2, for the years 2018, 2019 and 2020. Results are measured using the average of the last three years.

5 | Integrated Report 2023

In the bio-based avenue, our objective is to expand production capacity to 1 million tons by 2030. Thus, in addition to having completed the expansion of bio-ethylene capacity in Brazil, we formed the BraskemSiam. joint venture together with SCG Chemicals, with the objective of building a bio- -ethylene plant in Thailand. The operation, which is currently at study-phase, will have the capacity to produce around 200 thousand tons per year and will feature EtE EverGreen™, Braskem's proprietary technology for converting ethanol into ethylene, which was licensed in partnership with Lummus Technology LCC, a leading company in licensing proprietary technologies in the petrochemical sector.

Finally, our joint venture with Sojitz Corporation, Sustainea, produced the first bioPET bottle, a material made from renewable raw materials, which passed regulatory tests.

In 2023, the sales volume of I'm greenTM bio-based polyethylene decreased 13% due to the scheduled maintenance shutdown and completion of the ramp-up process of the capacity expansion project in Brazil.

In the circular economy growth avenue, we want to expand sales of products with recycled content to 1 million tons by 2030. Thus, we took important steps in our Wenew ecosystem, a brand that includes our circular products, technologies and initiatives. We completed the acquisition of Wise Plásticos S.A., a Brazilian company in the recycling segment, now holding a 61.1% equity interest in the company. With this, we now have 25 thousand tons of resin production capacity with recycled content. Finally, we signed an agreement with Vitol and Nexus Circular to supply circular raw materials from the chemical recycling process.

In 2023, sales of products with recycled content were 65.6 thousand tons, an increase of 25% compared to the previous year.

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Levers for the future

Our strategic objectives include continually strengthening competitiveness, productivity, sustainability and innovation in our business. These are the strategic pillars that put us on the path to finding solutions for a more sustainable future.

In 2023, in terms of competitiveness and productivity, I highlight the progress in the construction of ethane import terminal for our operations in Mexico, with physical progress of 52% and total disbursement of US$105 million(2) since the start of the project in 2022. The terminal is being built through the joint venture Terminal Química Puerto México (TQPM), formed by Braskem Idesa and Advario.

Regarding sustainability, we achieved 31% of our objectives for 2030, considering the seven dimensions of action that cover material topics for our business. Added to the good performance in GHG emissions, this progress is explained by the better performance in process safety and in our social responsibility and human rights indicators over recent years. In 2023, we benefited more than 350 thousand people through social investments and implemented 98% of plans to mitigate high and medium risks in human rights(3).

1. Considers the reimbursement made by Advario in the amount of US$56 million and includes Value Added Tax (VAT).
2. Based on due diligence conducted in 2021.

Innovation in our business includes a portfolio of projects that aim to deliver sustainable solutions with high added value through chemistry and plastic. In 2023, we ended the year with 140 projects, of which 121 had potential positive impacts on sustainable development. To this end, we disbursed around R$554 million in expenses and investments aimed at innova- tion, which represents an increase of almost 8% compared to the previous year.

Regarding digitalization, at the end of the year, we had more than 70 digital products, which capture a recurring value of R$700 million, an increase of 40% compared to 2022.

The amount disbursed for innovation includes the construction of the innovation center for renewable routes in Lexington, in the United States, which is in the final construction phase. With this, we add another unit to Braskem's six technology and innovation centers around the world.

Resilience and financial health

Given the industry's down cycle scenario, in addition to prioriti- zing investments, we focus on initiatives to maximize cash generation to support current operations and assets, but also to seek the growth of our business.

Therefore, we ended 2023 with a cash position of US$3.6 billion and another US$1 billion in revolving credit line, a level of liquidity sufficient to cover debt maturities for the next six years. This result is the consequence of an effort in continuous initiatives to optimize working capital on its multiple fronts: inventories, su- ppliers, accounts receivable.

From an operational point of view, we seek to reinforce our leadership position in the sector by optimizing our commercial strategy and maximizing global synergies, prioritizing sales and markets with higher added value and a better product mix. In managing

our fixed and variable cost structure, we were focused on initiatives to optimize our production to make it more competitive, such as cross-cutting goals to reduce fixed costs, renegotiation of contracts with suppliers, reassessment of our cost management strategy, assets, among others. As a result, we took, for example, the decision to hibernate the polypropylene production line at the Marcus Hook plant in Pennsylvania.

In 2023, we seek the resilience of our business, while prioriti- zing our efforts in implementing high-value investments. This work resulted in positive advances throughout the year, increasingly directing our actions towards achieving the results expected from our strategy. In the coming year, we will continue to seek to create long-term value for all stakeholders. In this way, Braskem reinforces its role and contribution to promoting development sustainable.

Roberto Bischoff

Braskem business leader

7 | Integrated Report 2023

Message from the chairman

of the Board of Directors

GRI 2-22

Dear readers,	High return investments
Today, society is experiencing a challenging global scenario.	Given the current situation in the petrochemical industry,
At the same time as they face socioeconomic and geopolit-	Braskem implemented structuring actions to mitigate the ef-
ical issues around the world, such as wars, inflationary pres-	fects on the profitability of its business, seeking resilience and
sures, rising costs of living and humanitarian crises, they are	financial health. Regarding investments in growth avenues,
also looking for solutions to address the climate crisis that is	the company prioritized the allocation of capital to those
materializing. Added to this, the chemical and petrochemical	whose returns were more attractive, seeking to optimize them
industry is going through a period of lower profitability, due to	through partnerships.
the entry of new production capacities and slowed demand.
	We also approved financing of US$408 million for the con-
With an eye on these issues and the creation of value in the	struction of the ethane import terminal in Mexico, which will
long term, in 2022 we approved the review of Braskem's cor-	expand Braskem's production capacity in the region. Financing
porate strategy, which established pillars, foundations and	occurs through the company Terminal Química Puerto México,
growth avenues with ambitions and objectives for 2030 and	jointly with Braskem Idesa formed jointly by partner Advario,
2050, integrated with sustainable development principles. In	company specialized in port terminals with a focus on infra-
the year 2023, the board of directors remained attentive to	structure and logistics for storing liquid products in bulk.
Braskem's management and, through our governance struc-
ture, was able to monitor and participate in the company's	Finally, in line with the objectives of the bio-based growth av-
progress towards this new vision, which kept its eye on the fu-	enue, the company expanded its technology and innovation
ture even in the face of challenges of short term.	structure, evolving in the construction of another research
	center for renewable solutions in the United States. With
	this new center, located in Lexington (USA), it will be possible
	to leverage the development of technologies in initial proj-
	ects, related to biotechnology and catalysis, contributing to
	Braskem's carbon neutrality objective.

José Mauro Mettrau Carneiro da Cunha

chairman of the Board of Directors

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Commitment to foundations

The perpetuity and growth of the business are combined with the bonds built with interested parties based on ethical, honest and transparent behavior in all our decisions. Acting in accordance with the law and best governance practices is paramount. In 2023, Braskem continues to advance its compliance system: we maintained the ISO 37001 certificate, which assesses the adoption of practices that mitigate the risk of corruption, and we maintained a score of 9.9 in the Ethos Institute assessment, remaining above average of the sector (6.6).

The company's progress in relation to compliance practices is recognized: in that same year, external monitoring applied by the Comptroller General of Brazil was completed and the level of updating of Braskem's system was once again confirmed - this was the last instance that maintained monitoring in the company. In 2020, the Federal Public Ministry, the United States Department of Justice and the American capital market regulatory body, the SEC, had already completed their respective monitoring and certified Braskem's compliance practices.

Commitment to people's safety is a non-negotiable value for Braskem. Therefore, the board of directors closely monitors the progress of the company's actions in relation to soil subsidence in Maceió. The company has been diligent and transparent in its actions, strictly complying with the

agreements established with the authorities and being accountable to interested parties. Faced with the collapse of one of the cavities monitored in an unoccupied protection area, Braskem declared consistency in its actions, reinforcing its commitments to the region.

9 | Integrated Report 2023

Sustainable growth

Over the past few years, we have actively participated in building Braskem's strategy and its progress towards sustainable growth. The planned investments are already showing their first results: in 2023, the company consolidated its stake in Wise Plásticos, which contributed to the increase in sales of the recycled business, reaching a growth of 25% compared to the previous year. Regarding innovation, Braskem's corporate ventures company, Oxygea, has already evaluated more than 500 potential investments and already has several start-ups.

The bio-based business advances with several initiatives in the portfolio. Among them, the recently created BraskemSiam, a joint venture in partnership with SCG Chemicals to expand the production of green ethanol in Thailand. Sustainea, a joint venture in partnership with Sojitz, also showed prog- ress: in 2023, a first bioPET bottle was produced and passed regulatory tests.

Furthermore, the company's management proved resilient during the year, making short-term decisions in balance with long-term value creation. Thus, at the end of the year, the company closed its cash position of US$3.6 billion and with an extended debt profile.

The company remains committed to integrating sustainable development into its strategy, seeking to address the impacts of its operations through economically viable processes, decisions and investments that capture opportunities and mitigate risks. As a result, Braskem remains focused on the perpetuity of the business and generating positive results for all interested parties.

José Mauro Mettrau Carneiro da Cunha

chairman of the Board of Directors

Key

figures

of 2023

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Human

Capital

33%	33%
women in	black team

leadership and members globally.

1.08

accidents per million man-hours worked.

Financial

Capital

ISO 37.001

recertification

and completion of AGU/ CGU(1) monitoring.

Cash position of

US$3.6 billion

billion and with an extended debt profile.

1. Attorney General of the Union/Comptroller General of the Union.

Natural

Capital

9.9 million

tons of greenhouse gas emissions (scopes 1 and 2).

53 million

tons of plastic recovered.

Social and

Relationship Capital

More than

350 thousand

people benefited from social investments.

Maintaining

"strong"

trust according to the RepTrak methodology.

Manufactured

Capital

Expansion to

260 thousand

tons of bio-ethylene in Brazil (Rio Grande do Sul).

Consolidation of Wise Plásticos, with

25 thousand

tons of PCR production capacity.

Intellectual

Capital

R$554 million

in disbursements for innovation.

82% in the Sustainability Index,

with 121 projects with a positive impact on sustainable development.