The Braskem case in Maceió: an analysis of operational risks from the perspective of ESG practices

Abstract

Mining occupies an important place in the Brazilian economy, significantly impacting GDP and job creation in the country through mineral exploration. Although highly profitable, it also requires extensive monitoring and risk management. Taking as a starting point the environmental disaster in Alagoas resulting from Brasken's rock salt mining, this study analyzes the operational risks inherent in the company's ESG practices. The methodology was qualitative and drew on the analysis of nine sustainability reports published between 2014 and 2022, seeking to determine whether changes occurred before and after the environmental disasters in the municipality of Maceió. Categories were established based on the literature and environmental and mining legislation, and the sections of the reports in which they appear were coded. The intensity of items related to compliance and operational risks was classified based on criteria developed by the research. The results indicate insufficient practices related to operational risk and compliance. Although these actions emerged after the 2018-2022 disaster, they are related to mitigation. There is still no Operational Risk Management Plan in place, which includes the assessment of social and human rights risks.