Climate Change Opportunities

The interest in low-carbon products and services brings new opportunities to the business. New profitable businesses arising from new markets and/or leveraged by public policy can lead to revenue diversification and reduced exposure to carbon. It is our priority to innovate and seek models to maximize value creation and our competitiveness in low-carbon businesses. The assessment of diversification opportunities, especially those that are synergic with our competencies, is the focus of the Profitable Diversification Committee, which, in addition to continuing the emphasis in biorefining, indicated further studies in offshore wind, hydrogen, and carbon capture and storage. Development opportunities are supported by our Research and Development (R&D) investment in low-carbon solutions, with a minimum allocation of 10% of R&D investment.

We have been working on developing and offering low-carbon products to the market. In addition to fuels with renewable content, such as Diesel R (already on sale), sustainable aviation kerosene, and bunker with renewable content, we also develop sustainable asphalts.

>> See chapter Investments and Initiatives

Product differentiation to the Foreign Market

The main pre-salt oil streams that we produce have a low level of GHG emissions associated with their production, a performance that gives us the possibility of exploring potential markets that already value sustainability as a quality requirement. We have the perspective of a growing pre-salt oil production curve for the coming years, and we are preparing to develop opportunities to offer products for markets and customers that recognize value in high-efficiency emissions associated with production.

Contracting Sustainability-Linked Loan

In 2022, we contracted a credit line with sustainability commitments (SustainabilityLinked Loan – SLL), in the amount of US$ 1.25 billion and maturity in five years. The contract was concluded with the Bank of China, the MUFG, and The Bank of Nova Scotia, with the aid of incentive mechanisms for achieving sustainability commitments, based on the Greenhouse Gas (GHG) Intensity indicators for E&P and Refining and the upstream segment’s methane intensity indicator.

This is the first time we have contracted a financing associated with its corporate sustainability targets, which reinforces the company’s focus on decarbonizing its operations and expands the liability management strategy by diversifying financing models, in line with the sustainability requirements that are increasingly present in debt markets.

The operation had competitive costs compared to market benchmarks.