Braskem SA
BAK
Materials
2
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Braskem SA is a major petrochemical company that produces thermoplastic resins, primarily polyethylene and polypropylene, from fossil fuel feedstocks. Its core business involves transforming oil and natural gas into plastics and chemicals, a process integral to the fossil fuel value chain. As a significant downstream consumer of fossil hydrocarbons, Braskem's operations provide an essential market for oil and gas extraction, falling under the definition of fossil fuel ancillary services.
The company's legal history is marked by serious misconduct related to its operations. In December 2016, Braskem S.A. entered into a plea agreement with U.S. authorities, admitting to violations of the Foreign Corrupt Practices Act (FCPA). The charges involved a scheme to bribe Brazilian government officials over many years to secure favorable rates from the state-owned oil company, Petrobras, for the raw materials vital to its petrochemical production. This corruption case underscores the deep, entrenched links between Braskem's business model and the state-controlled fossil fuel sector.
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.
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