It is with great pleasure that I share the results and achievements attained by Petrobras throughout 2023. It was a year of hard work and dedication, of overcoming challenges, achieving goals and records. The 2023 Sustainability Report shows our commitment to the company’s transparency and responsible practices, providing detailed information about our environmental, social, and governance (ESG) practices, as well as the company's progress in relation to our strategy.

 

In 2023, we approved our 2024-2028+ Strategic Plan (SP 2024-28+), a historic plan aimed at preparing and strengthening the company for the future. Over the next five years we plan an investment of USD 102 billion, 31% higher compared to the previous cycle. The SP 2024-28+ reaffirmed our position on ESG issues, integrating its elements into a single vision, with a focus on four key ideas: (i) reducing carbon footprint; (ii) protecting the environment; (iii) caring for people; and (iv) acting with integrity.

We have taken important steps towards a just energy transition, taking on a leadership role in the development of low-carbon energy sources in Brazil and increasingly more sustainable products. As examples, we can mention the maritime fuel with reduced sulfur content, the new CAP Pro asphalt, which consumes less energy, reduces emissions, and has greater durability; and the new Podium gasoline, the first carbon-neutral gasoline in the Brazilian market. Furthermore, we are committed to act in an integrated way with the just and participatory energy transition agenda, particularly in reducing social inequalities, including energy poverty, in alignment with the principles of climate justice and sustainable development, while considering the rights of workers and communities.

Throughout 2023, we achieved significant results in several areas. We reduced our greenhouse gas emissions by 41% (considering 2015 as a baseline year) and injected 13 million tCO2, the largest amount injected in a single year. We also reduced our natural gas consumption and achieved the highest total utilization rate of our refining units. These results reflect our commitment to operational efficiency and to the reduction of environmental impacts.

We invested in social and environmental projects, aiming to contribute to the sustainable development of the communities where we operate. We launched the largest public selection process in the history of the Petrobras Socioenvironmental Program, which will allocate over BRL 430 million to projects in education, sustainable economic development, ocean conservation, and forests over the next three years.

Furthermore, in 2023, through our activities, we distributed approximately BRL 378.7 billion to federal, state, and municipal governments through the payment of taxes, royalties, and special participations, financial institutions, supply chain, shareholders, and employees. Also, amounts around BRL 159 million were employed in voluntary social and environmental projects, BRL 566 million in social and environmental programs related to licensing conditions, BRL 89 million in cultural and sports projects, in addition to donations totaling BRL 2 million, which largely supported families affected by heavy rains in São Paulo during the year.

It is worth adding that, as of 2024, due to the public calamity caused by heavy rains and floodings in Rio Grande do Sul in early May, we donated nearly BRL 10 million to assist victims. The Rio Grande do Sul state is a region where we operate, and the ongoing critical situation motivates us to dedicate efforts to activate the emergency and crisis to support the population. We express our solidarity with our local workforce and the community through actions such as providing accommodation for around 600 people in our employee association, donating fuel, and providing a helicopter for transporting supplies and boats for rescuing victims. As we conclude this report, we cannot yet determine the future or the actions that will still be necessary, but we are sure of our commitment with the reconstruction of the entire region.

In line with our full attention to people, we have approved the Diversity, Equity, and Inclusion Policy and have created a dedicated management area for this theme. Thus, we commit to affirmative actions for underrepresented groups, as well as establishing goals and indicators for our diversity agenda, not only within Petrobras but also for suppliers and partners. The inclusion of the Diversity Clause in the terms of technological cooperation is an example of an initiative aimed at ensuring the participation of different groups. We have also set up the Petrobras Program Against Sexual Violence and the Support Channel to combat harassment and sexual violence and provide support to our employees.

Employees are one of our most important intangible assets. The ability to attract qualified and talented employees, as well as retain and nurture internal talent, is crucial to our success and sustainability. In 2023, over two thousand employees were hired through public selection processes, with 20% of the positions being reserved for Black people and 8% for people with disabilities. Additionally, the expansion of reserved positions for people with disabilities to 20% for the next technical level public selection process was approved.

We have made significant progress in our pursuit of safety excellence. In 2023, we halved the number of severe and fatal incidents compared to the previous year. Since the launch of the first Commitment to Life Program in 2016, we have seen a significant reduction in the Total Recordable Injury Rate (TRIR), from 2.15 to 0.80, still above the company's alert limit of 0.7 set for the year. Additionally, despite our zero fatality ambition, in 2023 we recorded two fatalities. These losses are regrettable and indicate that we need to persist and continue improving our practices in order to achieve absolute safety excellence.

We reinforce our commitments to environmental protection, with the reduction of water withdrawal and solid waste generation. Over the last three years, we have reduced freshwater withdrawal, which can be from rivers, aquifers, water utilities or other sources, of our operations by more than 20%. We went from approximately 150 million of cubic meters withdrawn in 2021 to about 115 million cubic meters in 2023, thus contributing to the maintenance of this relevant resource for society. Thereto, in addition of our portfolio management, actions for the reuse and reduction of water losses were implemented. The generation of hazardous solid waste in 2023 was 27.6% below the set internal limit of 110 thousand tons for the year, and the generation of non-hazardous solid waste was 10.2% below the internally set limit of 160.2 thousand tons. In 2023, we achieved a milestone of 91% reuse and recycling of the disposed waste. Furthermore, we reached 55% of our commitment to have 100% of our facilities with a Biodiversity Action Plan by 2025.

Our previous 2022 Sustainability Report was recognized as one of the top ten reports of the year by the Reporting Matters methodology, evaluated in Brazil by the Brazilian Business Council for Sustainable Development (CEBDS). This recognition was due, among other factors, to the strong alignment between governance and business strategy for the promotion of sustainable development, as well as the thorough and in-depth presentation of the company's impacts, balanced between positive aspects and challenges. This motivates us to keep our commitment to transparency, excellence, and continuous improvement.

I invite all of you to explore said report as it reflects our responsible operation and our efforts to integrate the Ten Principles of the United Nations Global Compact into our business strategy, culture, and daily operations, contributing to the Sustainable Development Goals.

 

Lastly, I would like to express my sincere gratitude to all employees, suppliers, partners, and shareholders who have contributed to the success achieved in 2023. Petrobras is made up of committed and talented people who dedicate themselves daily to overcoming challenges and building an increasingly sustainable and resilient company. Let us continue together, with determination and commitment, in pursuit of a better future for Petrobras and the world.

 

Magda Chambriard
Chief Executive Officer