Governance of climate change-related risks and opportunities

Our governance focused on risk management (threats and opportunities) of climate change and energy transition is structured in such a way that these issues are addressed at all levels of the company.

The integration of the theme across different levels is carried out by Climate Change Executive Management, whose function is to conceive and coordinate the positioning, strategies, and corporate actions related to carbon management, atmospheric emissions, energy efficiency, and climate change, both for us and for our holdings, aiming at maximizing the company’s value creation facing risks and opportunities linked to the transition to a low-carbon economy.

Roles and responsibilities of the different governance bodies in climate change-related decisions in the company:

BOARD OF DIRECTORS

HSE COMMITTEE

BOARD LEVEL

EXECUTIVE BOARD

DIRECTIVE FORUMS

STRATEGIC CLIMATE COMMIITTEES

HSE EXECUTIVE COMMITTEE

RISK EXECUTIVE COMMITTEE

EXECUTIVE BOARD LEVEL

SEGMENTS CLIMATE COMISSIONS

BUSINESS SEGMENTS

CLIMATE COMMISSION

EXECUTIVE MANAGEMENT LEVEL

LEVEL OF GENERAL MANAGEMENT AND MANAGEMENT

> Board of Directors (BoD): is responsible for defining the general direction of the company’s business, establishing its mission and strategic goals, including those related to sustainability; approving the Strategic Plan and the company’s global policies, including those on the environment and social responsibility; in addition to monitoring goals, results, and more severe business risks, including those of a socio-environmental nature.

> HSE Committee: composed of appointed directors and external members, it is responsible for advising the Board of Directors in establishing policies and guidelines related to the strategic management of HSE, climate change, transition to a low-carbon economy, and social responsibility, among other matters. The committee also monitors relevant sustainability indicators and topics, as well as the management and mitigation of the main risks related to the topic.

> Executive Board: comprised of the CEO and executive officers, it is responsible for managing the company’s business in accordance with the mission, goals, strategies, and guidelines established by the Board of Directors. The Executive Institutional Relations and Sustainability Officer is responsible for managing and overseeing sustainability-related matters, including climate and the transition to a low-carbon economy.

The advisory committees of the Executive Board are made up of executive managers from the corporate and operational areas who report directly to the members of the Executive Board:

> HSE Executive Committee: meets monthly and is responsible for analyzing and issuing recommendations to the Board of Directors on topics related to HSE, such as: strategies, policies, guidelines and their implementation and deployment; goals and investment plans for the development of strategies; performance monitoring and recommendation of improvement actions for the company units and its shareholdings; audit recommendations; proposals for projects and improvement actions and demands of the HSE Committee of the BoD.

> Risks Executive Committee: monitors risk treatment actions, analyzing and issuing recommendations on risk management policies and processes, as well as mitigation actions for the main risks, monitoring metrics and risk exposure limits, referring relevant issues to senior management.

> Management forums of the business segments (E&P, Refining & Natural Gas, and Trading & Logistics Segment): comprised of the director of the respective business segment and its executive managers, with the participation of a representative of the Climate Change Executive Management, for discussion and deliberation of specific matters of each area.

> Strategic commissions of the business segments (E&P, Refining & Natural Gas, and Trading & Logistics Segment): comprised of the executive managers of each business segment, with the participation of a representative of the Climate Change Executive Management, to discuss specific matters of each operational area and recommend topics for deliberation in the Management Forums.

> Segment-specific Climate Committees: bring together general managers or managers just below the executive managers of the business segments for joint deliberations on a subject.

> Climate Commission: brings together representatives from all areas for joint deliberations under the coordination of the Climate Change Executive Management.

In addition to the described governance, the theme also integrates the discussions of forums aimed at building the Strategic Plan, such as:

> ESG Corporate Forum: a forum that brings together professionals from areas related to sustainability and governance issues to assess cross-sectional issues of strategic planning to ensure greater consistency with the positioning and quantification of businesses.

> Profitable Diversification Committee: constituted in 2022, the body is responsible for evaluating the company’s entry into new business segments, considering multiple aspects, including climate. The Committee is coordinated by the Strategy and Planning area with the participation of Executive Managers who represent each of the company’s Boards.