In 2008,Petrobras renewed its participation in the Dow Jones Sustainability Indexes (DJSI), a portfolio of the New York Stock Exchange

Actions for Sustainability

Petrobras believes that by adopting a responsible and transparent attitude toward its activities and business contribute to the planet’s sustainable development. This is why it has been taking initiatives to enhance management and investments in order to monitor its performance, increase quality of projects and obtain consistency results of its actions.

Oficina de Comunicação e Cidadania do Projeto Quixote
Enlarge Image

When affirming its participation in the UN Global Compact, the company established the key strategies which guides its actions for sustainability. The commitment to adopt the ten principles of the Compact – relating to Human Rights, Labor, Environment and Transparency – it is a guideline for its decisions as well as provide coherence between the actions taken and the objectives provided in the Global Compact.

SOCIAL RESPONSIBILITY AND MANAGEMENT

In Petrobras, social responsibility is a corporate function. This means that the various units and subsidiaries take actions according to the policies and guidelines set by the company. This organization and management model provides a better dissemination of guidance and alignment of action among the companies in the Petrobras System.

The Social Responsibility Management Committee (CGRS) is a forum of discussion of social and environmental topics. The proposal are submitted to the Business Committee assessment and for subsequent approval of the top executive administration.

The CGRS has 17 members, including corporate executive managers and representatives of the subsidiaries Transpetro and Petrobras Distribuidora. Some of its duties are: to propose corporate guidelines and strategies of social responsibility; to define goals, monitor and assess performance; and promote dissemination of the company’s actions.

Petrobras is one of the companies members of the Globally Responsible Leadership Initiative (GRLI), a project of the European Foundation for Management Development (EFMD), supported by the UN Global Compact, which aims to further and support development of responsible leaders.

The company, in partnership with Dom Cabral Foundation and under the coordination of EFMD, has created its own methodology to develop the Globally Responsible Leader. In the first module, top level executives participated in four seminars in 2007 and 2008. In 2009, the plan is to increase the capacity building among the other managers and later disseminate the methodology worldwide through UN Global Compactrelated networks.

The commitment to adopt the ten principles of the UN Global Compact – relating to Human Rights, Labor, Environment and Transparency – guide the Petrobras’ decisions

PARTICIPATION IN INITIATIVES AND ASS OCIATIONS

The commitment of Petrobras to sustainability is not only expressed in strategic documents and internal management processes. The company also participates in several initiatives and is member of many national and international organizations where the discussion of strategic topic is deepened, lessons are learned and best practices of social responsibility are shared.

UN Global Compact — An initiative of the United Nations by which organizations agree voluntarily to commit and to communicate their performance concerning ten principles related to Labor, Human Rights, Environment and Transparency. Petrobras is a signatory since 2003 and the company CEO became a member of the initiative International Board in 2006. In the Brazilian Global Compact network, Petrobras and CPFL Energia jointly chair the Human Rights and Labor Committee and Environment Committee.

ISO 26000 — The future international standard of social responsibility is being drafted and is expected to be launched in the second half of 2010. Petrobras participates in its development process representing the industry segment in the Brazilian delegation. In order to further discussion of the ISO 26000 in Brazil, the company and the Brazilian Association of Technical Standards (ABNT) have been promoting thematic seminars for the Brazilian society. A highlight in 2008 was the Petrobras - ABNT - ISO Devco workshop (ISO Committee for developing countries). This workshop was held in Rio de Janeiro attended by the Brazilian delegation and stakeholder representatives from Brazil, and South American countries, as Argentina, Bolivia, Chile, Colombia, Ecuador, Peru, Uruguay and Venezuela.

Millennium Development Goals (MDG ) — Although it is a project designed for countries that agree to achieve the objectives by 2015, Petrobras supports the MDG and takes actions to help achieve its goals, through an agreement with the UN Development Programme (UNDP). In 2008, the company sponsored the second year of the MDG Brasil Prize, which acknowledges projects of social inclusion, achieving citizenship and promoting human rights.

Statement of G-8 Climate Change Roundtable — In this statement, company CEOs worldwide backed the efforts of consciousness regarding climate change, adopting policies and measures to mitigate greenhouse gas emissions. Petrobras joined the project in 2005 when it was launched.

Partnering Against Corruption Initiative (PACI ) — This initiative of the World Economic Forum was launched in 2004 and brings together companies to establish principles and practices of integrity, justice and ethics in the market’s competitive relations. Petrobras is signatory since 2005 and agrees to develop an effective program to implement these principles and adopt a zero-tolerance policy toward bribery.

Extractive Industry Transparency Initiative (EITI ) — The EITI was set up in 2002 as a result of an alliance between governments, international organizations, investors, companies and civil society groups to enhance transparency and accountability in the extractive sector, to improve the management of resources obtained from this activity. Petrobras joined the initiative in 2005 and agrees to encourage initiatives for transparency with the governments of the countries where it operates.

Global Reporting Initiative (GRI ) — The initiative prepares guidelines for sustainability reports in a process that involves representatives from various stakeholders groups around the world. By its participative nature and coverage of the indicators, it is considered the top international reference on guidance for sustainability reports.

In 2003, Petrobras started to adress the complete framework of the GRI guidelines when preparing the Social and Environmental Report and, in 2006, became an Organizational Stakeholder of GRI. Since 2007, the company is a member of the GRI International Stakeholders Council as one of the representatives of the industry in Latin America. The council discusses and deliberates on GRI governance and makes recommendations to its Board of Directors on the guidelines preparation process.

World Business Council for Sustainable Development (WBC SD) — More than 200 top global companies participate in the initiative, to discuss solutions for integrating the sustainability principles in business management and solutions. Petrobras joined the WBCSD in 2007. In Brazil the company is also part of the Brazilian Business Council for Sustainable Development (CEBDS) which is the national network of WBCSD and works to achieve the goal of integrating Brazilian companies on the discussion of sustainable development.

International Petroleum Industry Environmental Conservation Ass ociation (IPIECA ) — In 2006, Petrobras became a member of this non-profit organization of oil corporations and business associations worldwide to adopt best practices in Safety, Health and Environment by drafting handbooks, guides and guidelines. The discussions concentrate on topics such as climate change, biodiversity, response to oil spills, health care and social responsibility.

As ociación Regional de Empresas de Petroleo y Gás Natural en Latinoamérica y el Caribe (Arpel) — It brings together oil and gas companies and institutions operating in Latin America and the Caribbean to encourage development and integration of the region and to strength the relationship with society. Petrobras is represented on nine committees and with Repsol cochairs the Committee of Corporate Social Responsibility. In 2008, the Committee focused mainly on developing a Management System for Community Relations.

Brazilian Institute of Oil, Gas and Biofuels (IBP ) — This organization’s role is to further development of the Brazilian oil and gas sector to make it competitive, sustainable, ethical and socially responsible. There are more than 200 members in 44 commissions, committees and working groups, including the Biodiesel and Social Responsibility Committees, and the HSE Subcommittee.

RENEWAL IN DJSI

In 2008, Petrobras renewed its participation in the Dow Jones Sustainability Indexes (DJSI), a portfolio of the New York Stock Exchange of companies with best performance in economic, environmental and social aspects, where it has been listed since 2006. In accordance with the assessment criteria, the company has standed as a benchmark in the oil industry on the criterias of transparency, brand management, environmental report, biodiversity, human resources development and corporate citizenship. Today 20 global oil and gas majors companies belong to the DJSI.

DELISTED FROM ISE

In 2008 Petrobras was no longer part of the corporate portfolio of the São Paulo Stock Exchange Sustainability Index (ISE-Bovespa), where it has listed since 2006. The Petrobras Executive Board submitted to the Deliberative Council of ISE a formal request to explain the reason for this decision and at their answer they invited Petrobras to submit its main sustainability projects. The company awaits the schedule for this presentation.

The chairman of the Deliberative Council of the Ethos Institute disclosed to the press the presumed reason for Petrobras being delisted, information which concerns only to the members of the ISE Deliberative Council, since it is protected by a clause of confidentiality. For this reason the company decided to disassociate from the Ethos Institute and the institute was suspended from the ISE council for one year.