Braskem’s expansion has been challenging for the Legal Department

What are the main challenges and advantages of leading the legal department of America's largest petrochemical company? 

Cristiana Lapa W. Sarcedo: I started working at Braskem as a lawyer 16 years ago and have been able to accompany the company's entire growth process. At first, this growth was within Brazil, and the company's internationalization followed. First, in the United States and later in Europe and Mexico, besides the offices. 

Therefore, taking part in this whole expansion movement was extremely rewarding, professionally and personally. Learning to deal with different laws and cultures is quite an experience.

Since the corporate headquarters are in Brazil, it allows me to take part in the company's decision-making process and strategic direction and not merely have to comply with or observe the guidelines outlined in other locations. Undoubtedly, this is a great advantage in my role at Braskem.

Braskem currently has over 100 attorneys in its various regions. Besides the team in Brazil, the company also has attorneys in the USA, the Netherlands (coordinating the activities in Europe and Asia), and Mexico. I am also responsible for the company's Intellectual Property department, including engineers, chemists, and other professionals. 

Leading a global staff is challenging because we must deal with diverse cultures and legislation while maintaining a consistent identity and direction.

It is also an ongoing challenge to ensure team cohesion since Braskem's Legal Department is organized primarily by area of expertise. It undoubtedly brings the advantage of a more profound knowledge of different topics but imposes the need for multiple places to work together when it is a multidisciplinary project. In these cases, identifying one individual in the group to lead the project and keep the focus on efficiency and delivery of the result is essential. But we know we are on the right track when we succeed in delivering the results the company needs, whether by supporting the business department in negotiating processes or in litigation.

Recently, we received recognition from Leaders League through the International Legal Alliance Summit & Awards at the 2022 International General Counsel Awards. We received awards for the best Legal Department in Brazil and the best Intellectual Property Department in Latin America. Validated by peers and a jury, this recognition fills me with pride and motivation to continue with many projects.

Describe the main challenges recently faced by Braskem's Legal Department. And how to overcome them? 

Cristiana Lapa W. Sarcedo: As mentioned above, Braskem's expansion process in recent years has been challenging for the Legal Department. We organized ourselves at various locations, dealing with increasingly complex regulatory scenarios, including ESG and Data Protection.

Furthermore, the complexity of negotiating the leniency agreements signed by the company with the Brazilian Public Prosecutor's Office, the US Department of Justice (DOJ), and the Offices of the Federal Attorney General and the Comptroller General was a significant challenge faced by Braskem's Legal Department in recent years. Most importantly, Braskem received the ISO 37001 Certification in 2021, indicating the company's commitment to acting ethically with integrity and transparency.

We are also aware of the complex tax regulatory environment, especially in Brazil, which creates significant litigation in this area. Braskem's Legal Department has worked closely with these issues, also through leading cases and class associations, achieving effective results. The litigation volume in Brazil is undeniably the most relevant compared to other locations where Braskem operates. It undoubtedly demands considerable dedication from the Legal Department, which must focus on dealing with this specific reality in Brazil.

Last year, the Legal Department also assisted the company in the complex negotiation involving its subsidiary in Mexico, considering the local state company's reduction of raw material supply. Through a renegotiation process, we were able to build a long-term alternative solution for supplying raw materials to the Mexico plant, ensuring its operation's viability. This outcome required a high level of availability and close contact with the Business Department, besides coordinating the support of specialized local and foreign law firms, including international arbitration.

Braskem is currently going through a very challenging situation with the recent environmental issue related to land subsidence in specific neighborhoods of the city of Maceio, State of Alagoas. What is the role of the company's legal department in managing a crisis of this scale?

Cristiana Lapa W. Sarcedo: Undoubtedly this has been a significant challenge for the Legal Department, as it involves a complex issue from a technical and social point of view. However, with the support of the Legal Department, the company has been able to make progress on its priority, which is people's safety. 

Through talks with different groups, we have advanced in the negotiations with the authorities (Public Prosecutors and Public Defenders) to establish a swift relocation and financial compensation program for the region's residents, approved by the Judiciary. 

Considering the number of people involved, approximately 15,000 properties, we assigned around 130 internal and external lawyers to this program to guarantee its prompt and efficient execution. So far, 99% of the submitted proposals have been accepted by the people participating in the relocation program, confirming its effectiveness. Which role do you believe the legal department plays in implementing these initiatives? How has Braskem structured these initiatives in the short, medium, and long term?

Cristiana Lapa W. Sarcedo: ESG is a critical issue in society today and at Braskem. Its complexity can be found in the multidisciplinary nature of the topics. In the environmental dimension, climate change and recycling take center stage. On the social front, diversity is a relevant issue in this debate; and in governance, the focus is on corporate ethics and transparency.

Along these lines, Braskem has made a series of voluntary commitments in the environmental field to reduce carbon emissions, substantially increase plastic recycling, and increase Braskem's production of biopolymers. 

To achieve these goals, Braskem will seek new technologies and partners to encourage and implement recycling and invest in biopolymers from renewable raw materials such as sugarcane, besides heavily investing in renewable energies such as wind power.

And the Legal Department is and will continue to be a relevant part of this process, mediating these negotiations with new partners, supporting the intellectual property issues of new technologies, following up on legislative and regulatory changes in these topics, and any litigation that may ensue.

Furthermore, besides the direct support to the business, as this is a transversal theme involving several legal areas such as business, regulatory, environmental, tax, labor, and others, we created an ESG Legal Committee. It is responsible for following these issues and promoting debates within the Legal Department, ensuring the entire department is up-to-date and contributing to the company meeting its commitments to society.

What initiatives can Braskem and its legal department expect in the next 12 months?

Cristiana Lapa W. Sarcedo: As seen above, there are many challenges for a global company that represents an essential industry activity and seeks sustainable solutions through chemistry and plastics for society. Not to mention the oscillating and uncertain economic scenarios that make this whole process even more challenging.

Achieving these goals will only be possible with the support of a Legal Department attuned to trends, closely connected to the business, and seeks to build the best possible solutions.

To achieve this, the team must seek the best external partners and technology support to manage legal issues, such as contracts, consultations, and litigation.

A more diverse company will be better positioned to meet the challenges ahead in the coming years. Therefore, I have encouraged the inclusion of diversity in Legal Affairs and at Braskem.