Our positioning, actions and results related to carbon management and climate change are supported by three fundamental pillars:

Climate change and the transition to a low-carbon economy represent new challenges and opportunities for our business. With climate change worsening and advancements in agreements and regulations, if we do not prepare for new global challenges, we could be subject to financial, reputational, and legal impacts. We have a track record of analyzing and managing risks related to climate change. Our risk management process is integrated, which allows for the standardization of analysis and effective corporate management of all identified risks:

Our long-term ambition is to neutralize emissions in activities under our control (Scopes 1 and 2) by 2050 and influence partners to achieve the same ambition in non- operated assets.³

We joined the initiative “Aim for zero methane emissions” promoted by the Oil and Gas Climate Initiative (OGCI) and we aim to achieve “near zero methane emissions” in 2030.

Our six commitments to reduce the carbon footprint with a focus on climate change mitigation cover 100% of emissions under our operational control (scopes 1 and 2), bringing targets for the 2025 and 2030 timeframe, as detailed in the table:

³ Our ambition refers to emissions in Brazilian territory, where more than 98% of our operational emissions take place. For other emissions,  we aim to achieve  neutrality within a period compatible with the Paris Agreement, in line with local commitments and international organizations.

The challenge of achieving operational emissions neutrality involves the need to make the technologies that will support this commitment technically and financially feasible. To overcome this challenge, the Carbon Neutral Program was structured aiming to strengthening our current position in low carbon, as well as accelerating and reducing the costs of decarbonization solutions, bringing greater competitiveness to the company. It is the transversal instrument that seeks the integrated corporate vision of all our initiatives, developed by different business areas.

This program has the following areas of action:

The Carbon Neutral Program has a Decarbonization Fund aimed at accelerating the decarbonization of operations (scopes 1 and 2), aiming to meet climate commitments and net zero ambition. The fund has a specific budget, currently US$1.0 billion for the fiveyear period (2024-2028).

In the first quarter of 2024, the portfolio of projects approved for use of the fund includes 30 decarbonization opportunities, with a committed amount of approximately U$S 400 million, with a mitigation potential of 1.4 million tCO2e/year when implemented.

Between 2015 and 2023, our absolute operational GHG emissions fell by 41%. Compared to 2022, the 2023 result was also a reduction in emissions, accounting for 46 million tons of GHG in the year, therefore a total approximately 4% lower than the 48 million tCO₂ registered in the previous year. It is important to note that the low thermoelectric dispatch has positively affected our absolute emissions results. Actions resulting in efficiency gains and reduced losses implemented in the operating segments, as well as some divestments throughout 2022, were also drivers for lower GHG emissions in 2023.

As in 2022, we chose to neutralize our Scope 2 emissions in Brazil through the purchase of Renewable Energy Certificates (I-REC). These certificates guarantee that 100% of the electricity purchased for use in our industrial and office operations in Brazil is generated by renewable sources. We neutralized 128,000 tCO₂, equivalent to 3.37 million MWh of purchased renewable electricity. This initiative reinforces our carbon sustainability commitments, stimulating and contributing to Brazil's mostly renewable electricity mix. Abroad, our Scope 2 emissions totaled 150 tCO₂, representing just 0.0003% of our absolute operational emissions in 2023.

Our goal of reducing absolute operational emissions by 30% by 2030, compared to 2015, is aligned with the progressive reduction of our operational emissions, already considering the expected increase in production in the period, and is supported by a set of systemic actions to be implemented in the coming years.

We also monitor operational emissions from our oil and gas activities in isolation, whose calculation of operational emissions does not include emissions arising from our operations in the thermoelectricity market. Thus, we can verify the results of our efforts to reduce absolute emissions without the influence of the thermoelectric dispatch requested by the ONS (National System Operator).

Total operational emissions (Scopes 1 and 2) from our oil and gas activities have shown a continuous downward trend over the last few years, reaching a reduction of 24% between 2015 and 2023. The E&P and Refining segments account for the most significant portion of our total absolute operational emissions. Our top IAGEE metric is made up of the GHG emissions intensities of these two segments and have shown a reduction trajectory in recent years.

In terms of unused hydrocarbons in our operations, we have historically observed a reduction in volumes burned in flares or directly dissipated into the atmosphere. Compared to 2018, the volume of flared gas in 2023 was 38% lower. As already reported in previous items, this reduction in flaring is mainly related to better use of gas in E&P operations. With regard to hydrocarbons dissipated directly into the atmosphere, we observe the continuity of the reduction in 2023, mainly associated with improvements in the inventory process and reduction of losses in our units.

In 2023, we consumed 634,000 TJ of energy and sold 100,000 TJ of electrical power and 5,000 TJ of steam, resulting in a balance of 562,000 TJ of total energy consumption within the organization. Domestic consumption in 2023 is equivalent to 300,000 barrels of oil equivalent per day (boed) of energy and decreased by 8% compared to the previous year. This reduction directly reflects the energy efficiency improvements and optimization, which resulted in a reduction in fuel consumption in our processes, as well as the low activity of  thermal power generation in 2023. We highlight that we supply society, in terms of fuel sold, a total of 5.9 million TJ of energy.

Improving energy efficiency of our processes is essential to our path towards reducing GHG emissions. Since we have a wide range of operational activities and products, we manage energy performance based on the analysis of energy consumption and production results separately, in addition to emissions intensity indicators.

To meet society's growing demand for low-carbon products, and in order to advance the discussion of scope 3, we aim to expand the supply of renewable fuels, with the potential to increase biofuel production capacity by up to four times by 2030. In the renewable electrical power generation segment, we see a potential to balance, by 2030, the generation capacity from renewable sources with the generation capacity in thermoelectric plants, seeking the integration of different energy sources and energy efficiency and security. Considering this potential, we can reduce the emissions intensity of our portfolio by up to 3% by 2030.

Technological innovation has been the basis for our pioneering spirit throughout our 70 years and will drive the construction of the future to enable decarbonization trajectories, which take into account the social aspect of the cost of energy. We believe that the competitiveness of renewable electrical power generation technologies, liquid fuels with a lower carbon footprint, less energy-intensive processes, hydrogen, CCUS, subsea CO₂ separation, will be essential for the creation of new energy paradigms based on low carbon, with generation of value to society.

We are committed to investing in low-carbon research, development, and innovation (RD&I). The development of low-carbon solutions will be allocated 15% of the total RD&I budget in 2024, reaching 30% in 2028.

Our research portfolio explores opportunities in the oil and gas chain and in renewables. We have been developing and evaluating technologies that contribute to achieving the established decarbonization targets, reducing emissions in internal processes and adding greater sustainability to our products, but also aiming at long-term diversification.

Are main R&D initiatives in low carbon are:
• Energy efficiency
• CCUS (carbon capture, utilization, and geological storage)
• Subsea CO₂ separation
• Mitigation of methane emissions
• Low carbon products
• Clean hydrogen

• Wind and Solar Generation

We believe that emissions offsets from carbon credits can be used as a complementary tool in our decarbonization trajectory. These credits can be nature-based, taking advantage of  the potential of forests, soils, oceans, and seaweed, or obtained through technological solutions. While we expect offset use, these initiatives should be thought of as additional contributions to intrinsic mitigation efforts and do not replace the society's need to supply less carbon-intensive energy. 

Our operating assets are mostly installed in Brazil, and we are responsible for supplying a large part of the energy consumed in the country. We prioritize the acquisition of nature- based credits that include Afforestation, Reforestation, and Revegetation (ARR) credits and credits for Reducing Emissions from Deforestation and Degradation (REDD) as a contribution to mitigating national GHG emissions, of which 38% arise from changing the use of land and forests (MCTI, 2023). Thus, we have included offsets in our strategy as a possibility for achieving even more ambitious results than those possible with the intrinsic decarbonization of our operations, while at the same time contributing to the preservation of Brazilian ecosystems. 

We seek high-quality credits in order to ensure that they are actually bringing climate, socioeconomic and environmental benefits, taking advantage of the Brazilian potential in generating highly competitive nature-based credits. We are committed to disclosing the origin and use of our carbon credits in a transparent and traceable way.

Our Social Responsibility Policy presents as a guideline to promote the conservation, recovery, and sustainable use of forests, strengthening the importance of developing and implementing nature based solutions that contribute to mitigating climate change, halting the loss of biodiversity and for the well-being of live among Indigenous peoples and traditional communities. Thus, through the Petrobras Socioenvironmental Program, in 2023 we voluntarily supported 24 projects focused on forest areas recovery and conservation, in which BRL 31 million were invested in that year.

The projects in force in 2023 worked on the direct recovery or conservation of more than 358,000 hectares of forests and natural areas in the Atlantic Forest, Amazon, Caatinga and Cerrado, contributing to the mitigation of GHG emissions. The estimated net incremental benefit of the work carried out so far by these projects is around 2 million tCO₂e, and considers the net removal and avoided emissions by actions that prevent deforestation.

The projects also worked to strengthen the management of around 28 million hectares of protected areas⁸ This includes actions such as monitoring fires, biodiversity, and sustainable management with income generation through socio-biodiversity products in Indigenous lands and quilombola territories. These initiatives also work to monitor endangered land species. This is the case of the Corredor Caipira project, carried out by the Luiz de Queiroz Agricultural Studies Foundation (FEALQ), which works to form ecological corridors in the region where the largest primate in the Americas occurs - the Muriqui (Brachyteles arachnoides), and the No Clima da Caatinga Project, which works to preserve areas where the three-banded armadillo lives (Tolypeutes tricinctus), a species exclusive to Brazil. 

The 2023 Public Selection of the Petrobras Socio- Environmental Program has had its first stage completed and will incorporate into the portfolio seven new projects from the Forests line of action, in which around BRL30 million will be invested over the next three years, including a flagshipc initiative for the Cerrado, which will promote the recovery of areas to establish ecological corridors and carry out actions to preserve endangered fauna species. The second stage involves the selection of four more projects focusing on forests, with a total value of BRL 20 million, including one that will operate in the Pantanal.