Respect for diversity is at the base of the company’s commitment to the values expressed in its Code of Ethics

PROJECTS IN PARTNERSHIP WITH COMMUNITIES

Princípio 1 - Respeitar e apoiar humanos reconhecidos internacionalmente na sua área de influência

Petrobras is committed to maintaining ongoing communication channels and open dialogue in its surrounding communities.

Cooperativa Arte Costura - moda e estilo na economia solidária, em Fortaleza, no Ceará
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Actions taken with the participation of community members are in accordance with local culture and customs and are designed to prevent, monitor, assess and control the impacts where Petrobras is present. They also seek to ensure the process of social insertion and improve the quality of life of the communities, also aiming to reduce the interference of the company activities in cultural processes.

Petrobras identifies the basic needs of the regions where it operates and seeks to promote health care in the areas around its facilities, with monitoring services for control of endemic diseases, providing medical care and social assistance to prevent, control and accompany health problems caused by impacts from its operational activities, products and services.

The company also acknowledges that the investments in infrastructure and services can generate impacts – positive or negative – in the daily activities and the economy of wherever it operates. This is why it strives to improve its operations, pursuing local development, always taking precautions to reduce the negative impacts on the surroundings to the minimum as possible.

Undertakings are concerned mainly on investment in public utilities, such as water and power supply, sanitation, roads and hospitals. They include reurbanization and conservation of historic monuments. In Brazil, for instance, investments include road building and access roads in the area of influence of the Rio de Janeiro Petrochemical Complex (Comperj), which will allow shorter and safer journeys. The Transpetro urbanization projects of stretches of pipelines maintain the integrity of the pipelines at critical points, while at the same time preserve the integrity and safety of nearby communities.

ASSESSMENTS AND RESULTS

Direct and indirect impacts of the development of new projects or major expansions and alterations of company units are assessed. By identifying the weaknesses and potential strengths of each region, the studies are structured in the form of reports and disclosed at public meetings and hearings. An example is the Environmental Impact Report (Rima), concerned with people living in the new areas where the company intends to operate and whith meets the requirements of the environmental licensing processes.

The well being of the social groups affected by the facilities is a priority for the company. For this reason, during the year, the Petrobras Exploration and Production of (E&P) area has continued the new licensing practice begun the previous year. It proposes to adopt the Environmental Education Program (PEA) that was designed to prepare society to participate in decisions involving the environment.

As an example of this initiative is the Environmental Management Plan developed by Petrobras in Colombia, with the participation of the local community. The company made a prior analysis of the areas surrounding its facilities and assessed possible impacts of its activities before starting its operations. Through dialogue it was possible to foresee aspects that could affect the quality of life of the population. Strategies and agreements were defined for contracting local workforce and social and environmental education programs were offered. During the process, community leaders were involved to identify and prioritize social investments, besides monitoring the Petrobras management performance in the region.

RESPECT FOR DIVERSITY

Petrobras believes that demands and expectations of the surrouding communities involved must be considered in the projects. The respect for diversity is at the base of the company’s commitment to the values expressed in its Code of Ethics. Honesty, integrity, justice, equality, truth and coherence between words and practice refer to the relations of the Petrobras System with people and institutions. This is expressed in respect for the ethnic, religious, social, cultural, linguistic, political, esthetic, age, physical, mental and psychic differences and diversity, as well as for gender, sexual orientation, and so forth.

In 2008, there were no records of any violation of rights of indigenous peoples in the areas affected by the operations of Petrobras business units. The company not only adopts the formal guidelines before any undertaking, but it also seeks advice from licensing organizations and the Brazilian National Indigenous Foundation (Funai), and supports a set of projects in different regions in order to promote the rights of indigenous peoples.

COMPERJ

The Rio de Janeiro Petrochemical Complex (Comperj) is an example of how Petrobras assesses the impacts of its operations on the surrounding communities. Located in the municipality of Itaboraí, Rio de Janeiro State, the Complex implements the Communication and Social Responsibility Program, consisting of the Environmental Impact Assessment (EI A) and Rima, for evaluating its activities in the region. The actions are concerned with sustainable development, keeping an ongoing dialogue with the population from the surrouding area of the complex.

Based on the methodology of the program Keeping an Eye on the Environment, the Comperj Relationship Plan provides workshops for the community to participate, prepares local plans of sustainable development and publishes the consolidated document of Agendas 21. Engagement actions also include professional and management qualification of professionals in the eleven municipalities in the company’s area of influence by means of the Integration Center of Comperj, located in the municipality of São Gonçalo.

With operation start-up planned for 2012 and investments of approximately US$ 8.38 billion, Comperj will produce resins, thermoplastics and fuels. This will encourage the installation of companies of consumer goods in the region, since these petrochemical products are their basic raw material. On a domestic scale, the Complex will generate approximately 212,000 direct and indirect jobs.

KEEPING AN EYE ON THE ENVIRONMENT

The program Keeping an Eye on the Environment was created in 2004 by Petrobras to establish an ongoing relationship with the communities within its area of influence. By constructing Community Agendas 21 – diagnoses and action plans that take into account the local weaknesses and potential strengths in the projection of a desirable future scenario –, the company and communities form a partnership to collaborate with sustainable development in areas with a low level of social inclusion. Further information about the program Keeping an Eye on the Environment can be found in the case study of pages 50 and 51.

LOCAL PARTNERSHIPS

Petrobras aims to promote economic improvement by contracting workforce and acquiring goods and services from the markets where it operates. For contracting and performing projects, the company establishes local partnerships and capacitates the firms around its units, especially in the operational areas. Small services are provided by means of registering and inquiries to suppliers in turns, offering more opportunities to small and medium enterprises. In 2008, 78% of the goods and services was procured from suppliers based in Brazil.

Many Petrobras units have service facilities for the workforce and local commercial associations, in order to learn the local needs and the economic impacts generated in each locality. The company collects taxes that, reinvested by federal, state and local governments, contribute to the performance of public policies. The company’s main indirect economic impacts are related to the payment of royalties and special participations, and the ICMS (VAT) tax on Sales and Services.

The Petrobras Business Plan 2009-2013 forseen a demand of approximately one million jobs in Brazil for the company projects, which shall use 64% of local content. It is estimated an average of US$ 20 billion a year in orders to Brazilian suppliers.