Risk management model

Based on the corporate risks identified and recorded in our corporate risk matrix, we highlight, in a concise and non-exhaustive manner, some of the main risk events and factors related to material sustainability topics that may affect our performance, including in the long term. Corporate indicators, top company metrics, or indicators and targets described in our Strategic Plan 2050 and Business Plan 2025-2029, related to material topics and associated risk factors, are also mentioned. Some of these indicators are linked to financial incentives for our employees, promoting alignment between the risk management culture and the execution of the business strategy.

Emerging risks are new long-term risks arising from external factors, in which we identify a potential for significant impact on a large part of our operations and that may require adaptations in our strategy. Below are some emerging risks of great relevance to us and the measures being taken to mitigate these future risks.

Geopolitical conflicts emerge as a significant risk in an increasingly complex and challenging global environment. The interconnectedness of economies and the growing volatility of international relations make oil and gas companies vulnerable to a range of disruptions that can affect their operations and profitability.

The use of Artificial Intelligence (AI) in decision-making systems and processes can lead to incorrect decisions, as AI relies on data that may sometimes be incomplete or biased. These disparities can arise from different types of training, potential data poisoning attacks, and hallucinations. Furthermore, we are subject to an increase in regulations related to AI, which will require enhanced controls to comply with this new digital landscape.

The ongoing energy transition presents significant risks associated with its pace and the structural changes that may directly impact our business. The demand for fossil fuels is expected to decrease as alternative technologies become increasingly viable and popular. Our ability to remain competitive during the transition to low-carbon energy sources depends on factors such as regulation and consumer preferences, which are influenced by climate change and the energy transition toward alternative energy sources.