Letter from our CEO and Chief Institutional Relations and Sustainability Officer

Mitigating climate change is one of the significant challenges that humanity urgently needs to face. To achieve that, coordinated and practical efforts by all actors are essential, as the scale and complexity of the energy transition will require time and significant investment.

Scale because secular energy systems must be transformed at their core structure. Current global energy consumption is equivalent to about 100 billion barrels of oil per year, most of which comes from: oil (29%), natural gas (23%), and coal (26%) (IEA, 2022).

Complexity because there are multiple choices for decarbonization routes that reduce emissions equivalently; however, with different economic and social implications. In all scenarios, an increase in society’s interest in less carbon-intensity products is expected –and oil and its products are no exception.

Thus, we understand that promoting economic, social, and environmental development is a complex task. Still, Petrobras believes it is possible and is ready to contribute to a safe and just energy transition.

Petrobras’ contribution includes (i) investing resources and technologies in the production of carbon-efficient oil in Brazil, generating energy and relevant revenues to finance a responsible energy transition; (ii) investing in the capacity to offer gas and dispatchable energy to enable a high share of renewables in the Brazilian electricity matrix; (iii) investing and exploring new opportunities in lower carbon intensity products and businesses; (iv) promoting research and development of new technologies and low-carbon solutions and (v) investing in socio-environmental projects for the recovery and conservation of forests.

Petrobras also advanced in 2022 in commitments related to climate change: we improved the commitment to reduce absolute emissions by 2030, we increased the commitment to reinject CO2 in CCUS projects, and we improved the methane intensity reduction goal – an action that is reinforced through our support and agreement with the Oil and Gas Methane Partnership (OGMP 2.0) initiative.

With dialogue and planning, permanently seeking actions that contribute to a just transition from an economic, social, and environmental perspective, the goals set in the Paris Agreement can be reached.

Ethics and transparency are some of Petrobras’ core values, which are reinforced through the annual release of our Climate Change Supplement, a document that presents the position of Petrobras as a sustainable company committed to a world under decarbonization.

Jean Paul Prates Chief Executive Officer

Rafael Chaves Chief Institutional Relations and Sustainability Officer