BEATRIZ NASSUR ESPINOSA
Advancing the SDGs: Understanding and Improving the Role of Corporate Transparency
Annual Report
Petrobras' experience on Integrated Reporting
April 20th, 2018
Sustainability
Petrobras Overview — We are an integrated company operating in the segments of exploration and production, refining, transportation, marketing, distribution, petrochemicals, fertilizers, biofuels and power. Our main operations are in Brazil and we have activities in Argentina, Bolivia, Colombia, United States, Mexico, Nigeria, Paraguay, and Uruguay.
millions of boed, LGN, condensed and natural gas 120 platforms 7,888 producing wells
millions of bpd in products sold to the internal market 13 refineries and 1 shale oil plant
millions of m3 in biodiesel
millions of m3 in transported oil and products
4 biodiesel plants in operation
7,719 km of pipelines 55 product vessels 47 terminals
millions of m3 fuels 8,277 service stations
thousand MW generated in average 20 thermal power plants
Developing Petrobras' Integrated Reporting — Engagement
Integrated Report - 1st step
Join the IIRC Pilot Program for the development of the Integrated Reporting Model
IIRC concepts and framework incorporated into the 2016 Sustainability Report (materiality, business model, capitals and connectivity)
2013
Petrobras 2017 Integrated Report launched
Jul/2017
Dec/2016
Dec/2012 Integrated Report Brazilian Commission meetings; Some IIRC principles and elements incorporated in the annual reports
May/2017
March 15th, 2018 Integrated Report - 2nd step Working Group for developing the 2017 Integrated Report, based on IIRC framework
Integrated Report implementation — Model Definition
Integrated Reporting
Disclosure
Developing Process
Defining the Report Model —
2017/2018
2016/ 2017
Integrated Report
March
March
Annual Report 2016
Financial Statements 2016
April
Financial Statements 2016
Formulário de Referência
Note: ITR (Quarterly Financial Information) and RMF (Financial Market Report) are issued quarterly.
SEC April / May
May
Benchmark/Analysis
CVM
Formulário de Referência
Developing process — Multidisciplinary Team - 33 areas directly involved - 102 focal points - 30 WG meetings - 20 Governance committes meetings - Workshop
-
Team and reporting system Integration
-
Cultural change
Improvements: - Reliability - Focus on material aspects - Wording (more direct) - Connectivity of information - Capitals and Value creation
Integrated Reporting Process Processo de Elaboração do Form 20-F
Draft Preparation
Oct/2017
Content Development by business areas
Certification by Managers and Auditors
Board Approval
Disclosure
Dissemination
Mar/2018
- Launched to the market - Published on the website
Disclosure —
Annual Reports Integrated Report Annual Report Sustainability Financial Statements Form 20-F
Integrated Reporting is a process that promotes a more cohesive, efficient approach to prepare corporate reports, aiming to improve the quality of the information available to financial capital providers, seeking to explain how the company generates value over time, and providing subsidies to capital allocation in a more efficient and productive manner.
Materiality —
Business Model —
ANNUAL REPORT 2017 PETROBRAS
SAFETY OVERVIEW AND BUSINESS MODEL
BUSINESS PERFORMANCE STRATEGIES AND PERSPECTIVES
OUR CAPITAL EXTERNAL CONTEXT
GOVERNANCE AND COMPLIANCE
OTHER INFORMATION
RISKS AND OPPORTUNITIES
SUMMARY OVERVIEW AND BUSINESS MODEL
Message from the Chairman of the Board of Directors 03
Who we are 16
Message from the President of Petrobras 05
How we generate value 18 Business model
Where are we 17
OUR CAPITALS
EXTERNAL CONTEXT
Oil and Gas Exploration and Production Refining and natural gas 78 Financial performance
Intellectual Relationship Natural Productive Financial
ABOUT THE REPORT
MATERIALITY
BUSINESS PERFORMANCE
Human
STRATEGIES AND PERSPECTIVES
GOVERNANCE AND COMPLIANCE
RISKS AND OPPORTUNITIES
Strategic planning
Corporate governance
Risk management
Business plan 2018-22
Ethic
Crisis management 125
Management systens: Evolution Project
Compliance and internal controls
—
2017 Annual Report
SAFETY
Opportunities
OTHER INFORMATION
SUSTAINABILITY 2017 PETROBRAS
TRANSITION TO A LOW CARBON ECONOMY
DIGITAL TRANSFORMATI ON
PEOPLE
ENVIRONMENT
SOCIETY AND RELATIONSHIP
SUMMARY DIGITAL TRANSFORMATION
PEOPLE
Commitment to life
Message from the President of Petrobras
Human capital Respect for human rights Ethics and transparency PETROBRAS IN NUMBERS
ENVIRONMENT
—
Sustainability 2017
TRANSITION TO A LOW CARBON ECONOMY
CONTENT
Emissions and air quality
SOCIETY AND RELATIONSHIP
Relationship with stakeholders
Biodiversity
Supplier management
Water management
Social Investment
Waste management Spill Response
AUDITOR'S LIMITED ASSURANCE REPORT
§ § § §
Limited Assurance by KPMG Global Reporting Initiative – GRI Standards United Nations Global Compact principles SDGs correlation
Strategies and Perspectives — In line with our vision to evolve with society, we will pursue the value
Investments
creation and promote the development of skills and technologies by adding two new strategies: Prepare the company to a Low Carbon economy
US$ billions
Other areas
Reduce carbon emissions in our Reduce CO2 productive emissions processes in our operations
Invest and promote newpromote Invest and Technologies to to new tecnologies reduce impact on reduce climate climate change change impacts
Develop business with high value in Develop high value renewable energy business in renewable energy
Capture opportunities created by Digital Transformation
We will invest US$ 74.5 billion in our projects, of which 81% in Exploration and Production, from an active management of our portfolio, focusing on projects with the best economic and financial return and preferentially working in partnerships.
Generate value for process and operations
Digital Solutions and High Performance Computing
Automation and Artificial Inteligence
10
Stakeholder Relations — We engage with stakeholders, continuously to improve our communication by a constructive and transparent dialogue -
- Mailing for 40 thousand journalists - US$ 162 million for research with 213 universities and institutes - US$ 42 million in social, environmental and cultural projects
600 thousand investors Over 500 direct clients in Brazil and abroad 24 hour Ombudsman channel 11 thousand suppliers
RETAILERS
INTERNAL PUBLIC
PUBLIC AUTHORITIES
CLIENTS SCIENTIFIC AND ACADEMIC COMMUNITY
PARTNERS
CIVIL ORGANIZATIONS INVESTORS
PRESS
SOCIETY
COMMUNITIES
COMPETITORS CONSUMERS SUPPLIERS
Corporate Transparency — Integrated reporting Published on March 15th
Operations: Launched at the World Water Forum - March, Brazil
Civil Society Organizations projetcs Public Selection launched in March
Petrobras Social and Environmental Program
Colaboration and Engagement
Disseminating the SDGs — ü Disseminating SDGs throughout Petrobras Social and Environmental Program ü Public Selection will engage around 4,000 Civil Society Organizatios (CSOs) – subscription until May 5th Social and Environmental Lines of actions
Petrobras Social and Environmental Program
Education
Water
Children´s Right
Biodiversity
Sport
Forest and Climate
5 Crosscutting issues •
Human Rights and Fighting against Discrimination
•
Ethics, Integrity and Transparency
•
SDGs promotion, dissemination and implementation
•
Science and Technology Development and Diffusion
•
Eco-efficiency
Partnerships —
ü
SDG Territorialization and Acceleration
Ethical Connections of the Third Sector
United Nations Development Program
UN Educational, Scientific and Cultural Organization
110 Municipalities and 2,200 direct participants
180 CSOs and 1,800 direct participants
The project* will promote training and capacity
society organizations (CSOs) management systems
strategies
reinforcing
of
Agenda
2030
territorialization
and
ethics,
integrity
and
compliance
acceleration to achieve SDGs at municipality level,
practices, enhancing their positive impacts and
focusing on institutions that will implement social and
results; ü
The project will apply diagnostic research on
CapaCities methodology, developed by UNDP, aligned
compliance practices and global external training
with the institutional approach MAPS (Mainstreaming,
evaluation of 180 Petrobras' partners CSOs;
Acceleration and Policy Support) for local development; ü
The project* will contribute to strengthen civil
building for sustainable local development, through
environmental projects sponsored by Petrobras; ü
ü
ü
Capacity building for preparation, evaluation,
The project will encompasses 110 municipalities
implementation and monitoring of ethics, integrity
(totaling 23,304,262 inhabitants) nearby Petrobras´s
and transparency initiatives and support to the
operations;
development of instruments such as code of ethics and conduct guide for CSOs;
* under development
SDGs and the Oil and Gas Sector — Mapping the Oil and Gas Industry to the Sustainable Development Goals: An Atlas IPIECA, IFC and UNDP (2017) Ø Brazilian Petroleum Institute SDGs Workshop – Nov 2017 Ø IPIECA SDGs Workshop - March 2018
2 Petrobras Case studies:
Social Investment Initiatives: Petrobras Social and Environmental Program
Improving the work environment for women: Petrobras engagement at the Brazilian Pro-Gender and Race Equality Program
Thank you!
BEATRIZ NASSUR ESPINOSA Social Responsibility - Petrobras e-mail: [email protected]
7
Annual Report
Petrobras' experience on Integrated Reporting
April 20th, 2018
Sustainability
Petrobras Overview — We are an integrated company operating in the segments of exploration and production, refining, transportation, marketing, distribution, petrochemicals, fertilizers, biofuels and power. Our main operations are in Brazil and we have activities in Argentina, Bolivia, Colombia, United States, Mexico, Nigeria, Paraguay, and Uruguay.
millions of boed, LGN, condensed and natural gas 120 platforms 7,888 producing wells
millions of bpd in products sold to the internal market 13 refineries and 1 shale oil plant
millions of m3 in biodiesel
millions of m3 in transported oil and products
4 biodiesel plants in operation
7,719 km of pipelines 55 product vessels 47 terminals
millions of m3 fuels 8,277 service stations
thousand MW generated in average 20 thermal power plants
Developing Petrobras' Integrated Reporting — Engagement
Integrated Report - 1st step
Join the IIRC Pilot Program for the development of the Integrated Reporting Model
IIRC concepts and framework incorporated into the 2016 Sustainability Report (materiality, business model, capitals and connectivity)
2013
Petrobras 2017 Integrated Report launched
Jul/2017
Dec/2016
Dec/2012 Integrated Report Brazilian Commission meetings; Some IIRC principles and elements incorporated in the annual reports
May/2017
March 15th, 2018 Integrated Report - 2nd step Working Group for developing the 2017 Integrated Report, based on IIRC framework
Integrated Report implementation — Model Definition
Integrated Reporting
Disclosure
Developing Process
Defining the Report Model —
2017/2018
2016/ 2017
Integrated Report
March
March
Annual Report 2016
Financial Statements 2016
April
Financial Statements 2016
Formulário de Referência
Note: ITR (Quarterly Financial Information) and RMF (Financial Market Report) are issued quarterly.
SEC April / May
May
Benchmark/Analysis
CVM
Formulário de Referência
Developing process — Multidisciplinary Team - 33 areas directly involved - 102 focal points - 30 WG meetings - 20 Governance committes meetings - Workshop
-
Team and reporting system Integration
-
Cultural change
Improvements: - Reliability - Focus on material aspects - Wording (more direct) - Connectivity of information - Capitals and Value creation
Integrated Reporting Process Processo de Elaboração do Form 20-F
Draft Preparation
Oct/2017
Content Development by business areas
Certification by Managers and Auditors
Board Approval
Disclosure
Dissemination
Mar/2018
- Launched to the market - Published on the website
Disclosure —
Annual Reports Integrated Report Annual Report Sustainability Financial Statements Form 20-F
Integrated Reporting is a process that promotes a more cohesive, efficient approach to prepare corporate reports, aiming to improve the quality of the information available to financial capital providers, seeking to explain how the company generates value over time, and providing subsidies to capital allocation in a more efficient and productive manner.
Materiality —
Business Model —
ANNUAL REPORT 2017 PETROBRAS
SAFETY OVERVIEW AND BUSINESS MODEL
BUSINESS PERFORMANCE STRATEGIES AND PERSPECTIVES
OUR CAPITAL EXTERNAL CONTEXT
GOVERNANCE AND COMPLIANCE
OTHER INFORMATION
RISKS AND OPPORTUNITIES
SUMMARY OVERVIEW AND BUSINESS MODEL
Message from the Chairman of the Board of Directors 03
Who we are 16
Message from the President of Petrobras 05
How we generate value 18 Business model
Where are we 17
OUR CAPITALS
EXTERNAL CONTEXT
Oil and Gas Exploration and Production Refining and natural gas 78 Financial performance
Intellectual Relationship Natural Productive Financial
ABOUT THE REPORT
MATERIALITY
BUSINESS PERFORMANCE
Human
STRATEGIES AND PERSPECTIVES
GOVERNANCE AND COMPLIANCE
RISKS AND OPPORTUNITIES
Strategic planning
Corporate governance
Risk management
Business plan 2018-22
Ethic
Crisis management 125
Management systens: Evolution Project
Compliance and internal controls
—
2017 Annual Report
SAFETY
Opportunities
OTHER INFORMATION
SUSTAINABILITY 2017 PETROBRAS
TRANSITION TO A LOW CARBON ECONOMY
DIGITAL TRANSFORMATI ON
PEOPLE
ENVIRONMENT
SOCIETY AND RELATIONSHIP
SUMMARY DIGITAL TRANSFORMATION
PEOPLE
Commitment to life
Message from the President of Petrobras
Human capital Respect for human rights Ethics and transparency PETROBRAS IN NUMBERS
ENVIRONMENT
—
Sustainability 2017
TRANSITION TO A LOW CARBON ECONOMY
CONTENT
Emissions and air quality
SOCIETY AND RELATIONSHIP
Relationship with stakeholders
Biodiversity
Supplier management
Water management
Social Investment
Waste management Spill Response
AUDITOR'S LIMITED ASSURANCE REPORT
§ § § §
Limited Assurance by KPMG Global Reporting Initiative – GRI Standards United Nations Global Compact principles SDGs correlation
Strategies and Perspectives — In line with our vision to evolve with society, we will pursue the value
Investments
creation and promote the development of skills and technologies by adding two new strategies: Prepare the company to a Low Carbon economy
US$ billions
Other areas
Reduce carbon emissions in our Reduce CO2 productive emissions processes in our operations
Invest and promote newpromote Invest and Technologies to to new tecnologies reduce impact on reduce climate climate change change impacts
Develop business with high value in Develop high value renewable energy business in renewable energy
Capture opportunities created by Digital Transformation
We will invest US$ 74.5 billion in our projects, of which 81% in Exploration and Production, from an active management of our portfolio, focusing on projects with the best economic and financial return and preferentially working in partnerships.
Generate value for process and operations
Digital Solutions and High Performance Computing
Automation and Artificial Inteligence
10
Stakeholder Relations — We engage with stakeholders, continuously to improve our communication by a constructive and transparent dialogue -
- Mailing for 40 thousand journalists - US$ 162 million for research with 213 universities and institutes - US$ 42 million in social, environmental and cultural projects
600 thousand investors Over 500 direct clients in Brazil and abroad 24 hour Ombudsman channel 11 thousand suppliers
RETAILERS
INTERNAL PUBLIC
PUBLIC AUTHORITIES
CLIENTS SCIENTIFIC AND ACADEMIC COMMUNITY
PARTNERS
CIVIL ORGANIZATIONS INVESTORS
PRESS
SOCIETY
COMMUNITIES
COMPETITORS CONSUMERS SUPPLIERS
Corporate Transparency — Integrated reporting Published on March 15th
Operations: Launched at the World Water Forum - March, Brazil
Civil Society Organizations projetcs Public Selection launched in March
Petrobras Social and Environmental Program
Colaboration and Engagement
Disseminating the SDGs — ü Disseminating SDGs throughout Petrobras Social and Environmental Program ü Public Selection will engage around 4,000 Civil Society Organizatios (CSOs) – subscription until May 5th Social and Environmental Lines of actions
Petrobras Social and Environmental Program
Education
Water
Children´s Right
Biodiversity
Sport
Forest and Climate
5 Crosscutting issues •
Human Rights and Fighting against Discrimination
•
Ethics, Integrity and Transparency
•
SDGs promotion, dissemination and implementation
•
Science and Technology Development and Diffusion
•
Eco-efficiency
Partnerships —
ü
SDG Territorialization and Acceleration
Ethical Connections of the Third Sector
United Nations Development Program
UN Educational, Scientific and Cultural Organization
110 Municipalities and 2,200 direct participants
180 CSOs and 1,800 direct participants
The project* will promote training and capacity
society organizations (CSOs) management systems
strategies
reinforcing
of
Agenda
2030
territorialization
and
ethics,
integrity
and
compliance
acceleration to achieve SDGs at municipality level,
practices, enhancing their positive impacts and
focusing on institutions that will implement social and
results; ü
The project will apply diagnostic research on
CapaCities methodology, developed by UNDP, aligned
compliance practices and global external training
with the institutional approach MAPS (Mainstreaming,
evaluation of 180 Petrobras' partners CSOs;
Acceleration and Policy Support) for local development; ü
The project* will contribute to strengthen civil
building for sustainable local development, through
environmental projects sponsored by Petrobras; ü
ü
ü
Capacity building for preparation, evaluation,
The project will encompasses 110 municipalities
implementation and monitoring of ethics, integrity
(totaling 23,304,262 inhabitants) nearby Petrobras´s
and transparency initiatives and support to the
operations;
development of instruments such as code of ethics and conduct guide for CSOs;
* under development
SDGs and the Oil and Gas Sector — Mapping the Oil and Gas Industry to the Sustainable Development Goals: An Atlas IPIECA, IFC and UNDP (2017) Ø Brazilian Petroleum Institute SDGs Workshop – Nov 2017 Ø IPIECA SDGs Workshop - March 2018
2 Petrobras Case studies:
Social Investment Initiatives: Petrobras Social and Environmental Program
Improving the work environment for women: Petrobras engagement at the Brazilian Pro-Gender and Race Equality Program
Thank you!
BEATRIZ NASSUR ESPINOSA Social Responsibility - Petrobras e-mail: [email protected]
7
