Advancing the SDGs: Understanding and Improving the Role of Corporate Transparency. Petrobras' experience on Integrated Reporting.

Transcription

1 Advancing the SDGs: Understanding and Improving the Role of Corporate Transparency Annual Report Petrobras' experience on Integrated Reporting April 20th, 2018 Sustainability

2 Petrobras Overview We are an integrated company operating in the segments of exploration and production, refining, transportation, marketing, distribution, petrochemicals, fertilizers, biofuels and power. Our main operations are in Brazil and we have activities in Argentina, Bolivia, Colombia, United States, Mexico, Nigeria, Paraguay, and Uruguay. millions of boed, LGN, condensed and natural gas 120 platforms 7,888 producing wells millions of bpd in products sold to the internal market 13 refineries and 1 shale oil plant millions of m 3 in biodiesel 4 biodiesel plants in operation millions of m 3 in transported oil and products 7,719 km of pipelines 55 product vessels 47 terminals millions of m 3 fuels 8,277 service stations thousand MW generated in average 20 thermal power plants

3 Developing Petrobras' Integrated Reporting Engagement Join the IIRC Pilot Program for the development of the Integrated Reporting Model Integrated Report - 1 st step IIRC concepts and framework incorporated into the 2016 Sustainability Report (materiality, business model, capitals and connectivity) Petrobras 2017 Integrated Report launched 2013 Jul/2017 Dec/2012 Dec/2016 May/2017 March 15 th, 2018 Integrated Report Brazilian Commission meetings; Some IIRC principles and elements incorporated in the annual reports Integrated Report - 2 nd step Working Group for developing the 2017 Integrated Report, based on IIRC framework

4 Integrated Report implementation Model Definition Integrated Reporting Disclosure Developing Process

5 Defining the Report Model 2017/ / 2017 Integrated Report March March Annual Report 2016 Financial Statements 2016 April Financial Statements 2016 Formulário de Referência Note: ITR (Quarterly Financial Information) and RMF (Financial Market Report) are issued quarterly. SEC April / May May Benchmark/Analysis CVM Formulário de Referência

6 Developing process Multidisciplinary Team - 33 areas directly involved focal points - 30 WG meetings - 20 Governance committes meetings - Workshop - Team and reporting system Integration - Cultural change Improvements: - Reliability - Focus on material aspects - Wording (more direct) - Connectivity of information - Capitals and Value creation Processo de Elaboração do Form 20-F Integrated Reporting Process Draft Preparation Content Development by business areas Certification by Managers and Auditors Board Approval Disclosure Dissemination Oct/2017 Mar/ Launched to the market - Published on the website

7 Disclosure Annual Reports Integrated Report Annual Report Sustainability Financial Statements Form 20-F Integrated Reporting is a process that promotes a more cohesive, efficient approach to prepare corporate reports, aiming to improve the quality of the information available to financial capital providers, seeking to explain how the company generates value over time, and providing subsidies to capital allocation in a more efficient and productive manner.

8 Materiality

9 Business Model

10 ANNUAL REPORT 2017 PETROBRAS SAFETY OVERVIEW AND BUSINESS MODEL OUR CAPITAL EXTERNAL CONTEXT BUSINESS PERFORMANCE STRATEGIES AND PERSPECTIVES GOVERNANCE AND COMPLIANCE RISKS AND OPPORTUNITIES OTHER INFORMATION SUMMARY SAFETY OVERVIEW AND BUSINESS MODEL OUR CAPITALS EXTERNAL CONTEXT BUSINESS PERFORMANCE 2017 Annual Report Message from the Chairman of the Board of Directors 03 Message from the President of Petrobras 05 ABOUT THE REPORT STRATEGIES AND PERSPECTIVES Who we are 16 Where are we 17 How we generate value 18 Business model GOVERNANCE AND COMPLIANCE Human Intellectual Relationship Natural Productive Financial RISKS AND OPPORTUNITIES OTHER INFORMATION Oil and Gas Exploration and Production Refining and natural gas 78 Financial performance MATERIALITY Strategic planning Corporate governance Risk management Business plan Management systens: Evolution Project Ethic Compliance and internal controls Crisis management 125 Opportunities

11 SUSTAINABILITY 2017 PETROBRAS TRANSITION TO A LOW CARBON ECONOMY DIGITAL TRANSFORMATI ON PEOPLE ENVIRONMENT SOCIETY AND RELATIONSHIP SUMMARY TRANSITION TO A LOW CARBON ECONOMY DIGITAL TRANSFORMATION PEOPLE Sustainability 2017 Message from the President of Petrobras PETROBRAS IN NUMBERS CONTENT ENVIRONMENT Emissions and air quality Biodiversity Water management Waste management Spill Response SOCIETY AND RELATIONSHIP Relationship with stakeholders Supplier management Social Investment Commitment to life Human capital Respect for human rights Ethics and transparency AUDITOR'S LIMITED ASSURANCE REPORT Limited Assurance by KPMG Global Reporting Initiative GRI Standards United Nations Global Compact principles SDGs correlation

12 Strategies and Perspectives Investments In line with our vision to evolve with society, we will pursue the value creation and promote the development of skills and technologies by adding two new strategies: Prepare the company to a Low Carbon economy US$ billions Other areas Reduce carbon emissions in our productive Reduce CO 2 processes emissions in our operations Invest and promote Invest and new promote Technologies new tecnologies to to reduce reduce impact climate on climate change change impacts Develop business with high value in renewable Develop high energy value business in renewable energy Capture opportunities created by Digital Transformation We will invest US$ 74.5 billion in our projects, of which 81% in Exploration and Production, from an active management of our portfolio, focusing on projects with the best economic and financial return and preferentially working in partnerships. Generate value for process and operations Digital Solutions and High Performance Computing Automation and Artificial Inteligence 10

13 Stakeholder Relations We engage with stakeholders, continuously to improve our communication by a constructive and transparent dialogue thousand investors - Over 500 direct clients in Brazil and abroad - 24 hour Ombudsman channel - 11 thousand suppliers - Mailing for 40 thousand journalists - US$ 162 million for research with 213 universities and institutes - US$ 42 million in social, environmental and cultural projects INTERNAL PUBLIC RETAILERS PUBLIC AUTHORITIES PARTNERS CLIENTS SCIENTIFIC AND ACADEMIC COMMUNITY CIVIL ORGANIZATIONS SOCIETY COMMUNITIES INVESTORS COMPETITORS PRESS CONSUMERS SUPPLIERS

14 Corporate Transparency Integrated reporting Published on March 15th Operations: Launched at the World Water Forum - March, Brazil Civil Society Organizations projetcs Public Selection launched in March Petrobras Social and Environmental Program Colaboration and Engagement

15 Disseminating the SDGs ü Disseminating SDGs throughout Petrobras Social and Environmental Program ü Public Selection will engage around 4,000 Civil Society Organizatios (CSOs) subscription until May 5th Social and Environmental Lines of actions Petrobras Social and Environmental Program 5 Crosscutting issues Education Children s Right Sport Water Biodiversity Forest and Climate Human Rights and Fighting against Discrimination Ethics, Integrity and Transparency SDGs promotion, dissemination and implementation Science and Technology Development and Diffusion Eco-efficiency

16 Partnerships SDG Territorialization and Acceleration United Nations Development Program 110 Municipalities and 2,200 direct participants Ethical Connections of the Third Sector UN Educational, Scientific and Cultural Organization 180 CSOs and 1,800 direct participants ü The project* will promote training and capacity building for sustainable local development, through strategies of Agenda 2030 territorialization and acceleration to achieve SDGs at municipality level, focusing on institutions that will implement social and environmental projects sponsored by Petrobras; ü CapaCities methodology, developed by UNDP, aligned with the institutional approach MAPS (Mainstreaming, Acceleration and Policy Support) for local development; ü The project will encompasses 110 municipalities (totaling 23,304,262 inhabitants) nearby Petrobras s operations; ü The project* will contribute to strengthen civil society organizations (CSOs) management systems reinforcing ethics, integrity and compliance practices, enhancing their positive impacts and results; ü The project will apply diagnostic research on compliance practices and global external training evaluation of 180 Petrobras' partners CSOs; ü Capacity building for preparation, evaluation, implementation and monitoring of ethics, integrity and transparency initiatives and support to the development of instruments such as code of ethics and conduct guide for CSOs; * under development

17 SDGs and the Oil and Gas Sector Mapping the Oil and Gas Industry to the Sustainable Development Goals: An Atlas IPIECA, IFC and UNDP (2017) Ø Brazilian Petroleum Institute SDGs Workshop Nov 2017 Ø IPIECA SDGs Workshop - March Petrobras Case studies: Social Investment Initiatives: Petrobras Social and Environmental Program Improving the work environment for women: Petrobras engagement at the Brazilian Pro-Gender and Race Equality Program

18 Thank you! BEATRIZ NASSUR ESPINOSA Social Responsibility - Petrobras bespinosa@petrobras.com.br 7