Braskem SA

Braskem S.A. is a major petrochemical processor, deriving its revenue from converting fossil fuel feedstocks into plastics and chemicals. Its core business is downstream fossil fuel utilization. The company operates a network of production complexes, primarily in Brazil, the United States, and Mexico, processing naphtha and natural gas liquids into ethylene, propylene, and polyethylene. Petrobras, Brazil's state-controlled oil company, is a key supplier of these feedstocks, with new long-term supply contracts announced in late 2025 to secure Braskem's operations.

The company's operations are directly tied to fossil fuel markets and generate significant greenhouse gas emissions. While Braskem publishes sustainability reports highlighting emissions reductions and investments in bio-based feedstocks, its primary business model remains dependent on the continued refining and consumption of oil and gas. Its strategic investments focus on expanding production capacity and combating industry oversupply, rather than transitioning away from fossil-based chemistry.

Braskem SA's rock salt mining operations under the city of Maceió, Alagoas, caused catastrophic land subsidence, rendering entire neighborhoods uninhabitable and triggering a mass evacuation. The company's extraction of 35 mine cavities beneath the urban area led to ground sinking, cracked buildings, and the displacement of approximately 60,000 residents. In December 2023, Brazil's environmental agency Ibama fined Braskem 72 million reais ($13.5 million) for this environmental damage.

The scale of the disaster prompted multiple legal actions. In July 2025, a Rotterdam court ruled in favor of affected victims, ordering Braskem to pay compensation. Prior to that, in November 2024, Brazilian federal police formally accused the company of crimes including pollution and damage to public property. The state of Alagoas has also filed a separate 4 billion-real ($717 million) lawsuit against the company. While Braskem reached settlements in September 2023 to close some public-interest civil actions, the ongoing legal and financial repercussions underscore the severity of the documented ecological and community harm.