Carbon Neutral Program

The challenge of achieving operational emissions neutrality is great, and we recognize that we have many, but not yet all, answers on how to get there. To overcome this challenge, the Carbon Neutral Program was structured to strengthen our current low-carbon position, accelerating and reducing the costs of decarbonization solutions, bringing greater competitiveness to the company. It seeks an integrated corporate vision of all our initiatives developed by different business areas.

The program includes the following approaches:

OPERATIONAL EXCELLENCE

Reduction of emissions in operations

DISRUPTION

Carry out projects in a different way, aiming at lower emissions without increasing costs

Opportunities portfolio for the Decarbonization Fund

SUPPLY CHAIN

Engage suppliers and expand the impact of decarbonization

LOWER EMISSIONS FROM PRODUCTS

Mitigate scope 3 emissions

REMOVAL

Seek CO2 removal opportunities through technological or nature-based solutions

COMMUNICATION AND RELATIONSHIP

Transparency and external relationship plan

The program has a fund dedicated to decarbonization projects, with a budget of US$ 600 million for the five-year period (2023-2027). Governance for access to the Decarbonization Fund involves analyzing and prioritizing decarbonization alternatives, using criteria such as MAC, the total amount of GHG abated, technological maturity, and project phase (window of opportunity), among others. We also consider the evaluation of the Net Present Value of the alternatives considering the internal carbon price in a specific governance.

In 2022, we approved the first portfolio of projects under the Decarbonization Fund, covering 13 opportunities with a total expected investment of US$ 76 million. The impacts of emission reduction will occur from 2023 (the year of first implementation), reaching about 1 million tCO2e avoided per year when the 13 opportunities are fully implemented.

Projects approved under the Decarbonization Fund

> Use of infrared cameras to detect and repair fugitive emissions on offshore oil and gas production platforms (optical gas imaging) in four areas;