The Petrobras Cultural Program (PPC) spearheads the company’s activities in the cultural sphere and is the greatest contributor to projects benefiting from cultural sponsorship in Brazil

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PROJECTS contribute to wards social And environmental development

The company’s principal investments in social projects are focused on the Petrobras Development & Citizenship program, aimed at supporting local, regional and national development and promoting the respectable and productive social insertion of the underprivileged. Of the R$ 225 million invested in social projects during 2008, 95.7% was channeled into initiatives supported under this program.

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SOCIAL PROJECTS

The program involves long term projects all over the country, based on three pillars: generating income and work opportunities, training leading towards professional qualifications, and safeguarding the rights of children and adolescents. One of the methods for choosing projects to be included under the Petrobras Development & Citizenship program is the public selection process. A total of 72 new projects were chosen in the 2007 round, the results of which were announced in May 2008.

Petrobras monitors the development of the projects using a variety of indicators and performance targets, so that the results from all over Brazil can be studied and assessed in an integrated manner. In 2008, a system for the organization of Petrobras’ social investments was introduced and a manual drawn up of best practices in the management of social investments, considering the three facets of sustainability – economic, social and environmental – using as a reference the methodologies of the UN Global Compact, GRI, Agenda 21 and WBCSD.

The partial results of the Petrobras Development & Citizenship program, from a total of 295 corporate projects, show that 520,000 were directly benefited, 6,865 job positions were filled through direct investment, there was a 201% increase in the average per capita income of the project participants, and 34% of the participants on vocational training courses earned certificates that are recognized by the SNCP (National System of Professional Certification). What is more, 23% of the people benefited were in the age range of 15 to 29 and 96% of the participants in projects aimed at protecting children and adolescents completed the full attendance period.

Another feature of Petrobras’ work in the social sphere is the transfer of resources through the Child & Adolescent Assistance Fund (FIA). In 2008, approximately R$ 48.5 million was allocated to 268 projects. The main initiatives, conducted in partnership with the Special Department of Human Rights (SEDH) and municipal, state and national councils for the rights of children and adolescents, are targeted at child labor, sexual exploitation, domestic violence, socio-educational measures and co-existence within the family and the community, among other themes.

ENVIRONMENTAL PROJECTS

The company invests in environmental projects and supports initiatives aimed at environmental preservation and the spreading of environmental awareness through the Petrobras Environmental Program (PPA), which is working to develop a Brazilian environmental agenda. During 2008, a total of R$ 53 million was invested in 173 projects throughout the country.

In August, Petrobras launched a new phase of the program, which is to channel R$ 500 million, during the period 2008-2012, into sponsorship and other strategic activities, such as strengthening environmental organizations and their networks and disseminating information on sustainable development.

The results of the third PPA public selection process were announced in December. A total of 47 initiatives were chosen from around the country, and these will receive a total of R$ 60 million in funding over the next two years.

The new theme of the PPA is “Water and climate: contributing to sustainable development”, building upon the previous theme, covering water and its biological diversity. The program’s activities will focus on three spheres: the management of surface and underground bodies of water; the recovery and conservation of species and of coastal, marine and freshwater environments; and carbon sequestration and the prevention of emissions.

CULTURAL SPONSORSHIP

Petrobras’ policy regarding cultural sponsorship is aligned with the company’s Strategic Plan, which, in addition to profitability, emphasizes its commitment towards social responsibility and the country’s growth. The company zealously champions and showcases Brazilian culture, through wide reaching sponsorship that is coordinated with government policies for the area and focuses on affirming the Brazilian identity.

Over the course of the year, Petrobras invested R$ 206.8 million in the cultural sphere, sponsoring some 1,000 different projects, chosen by means of public selection processes or direct choice. The activities supported by the company aim to develop more opportunities for the creation, production, dissemination and enjoyment of Brazilian cultural displays. Furthermore, Petrobras sponsors projects that contribute to building a permanent record of the Brazilian cultural heritage, consolidating the work of recovery, restoration, organization and registration of the country’s physical and non-physical legacy, with priority to those at risk, as well as broadening public access to these collections.

In 2008, the company launched its fifth edition of the Petrobras Cultural Program (PPC), which allocated R$ 42 million to the public selection of projects. Through the program, Petrobras sponsors projects that are of public interest and provides democratic access to funding. The PPC spearheads the company’s activities in the cultural sphere and is the greatest contributor to projects benefiting from cultural sponsorship in Brazil, and its procedures are transparent and are divulged throughout the country.

The activities of the PPC are focused on three areas: "Production and Dissemination", "Preservation and Legacy", and "Education and Training" in the arts. Within these three areas, sponsorship is provided to projects in the fields of the cinema, literature, scenic arts, digital culture, music, visual arts and the non-physical cultural legacy. Projects relating to historical buildings are sponsored in response to invitations, and priority is given to the restoration of protected buildings that are of particular historical, architectural or cultural importance, taking into further consideration the urgency of the restoration work required.

SPORTS SPONSORSHIP

Petrobras is one of the greatest sponsors of sport in Brazil. In a survey conducted by the international consultants Market Analysis, the Petrobras brand is singled out as the one most closely associated in Brazil with sport. In 2008, the company invested around R$ 61.4 million in projects throughout the country, through the Petrobras Motor Sport and Petrobras Competitive Sports programs.

Under the Competitive Sports Program, Petrobras provides support to handball, surfing and tennis, as well as football, through its sponsorship of Flamengo, the club with the largest fan base in Brazil. As an official sponsor of the Brazilian Olympic Committee (COB), it also encourages Olympic sports in Brazil. Moreover, it was one of the first companies to make use of the benefits of the Federal Law Governing Sporting Incentives, sponsoring the preparations of the Brazilian Delegation for the 2008 Olympic Games in Peking.

Under the Motor Sport Program, the company’s activities are focused on technological cooperation, using the race track for the rigorous testing and development of its products. A prime example was its technical partnership with the Williams Formula 1 racing team, concluded at the end of 2008, which led to the development of Podium Gasoline, which is considered to be the best fuel in the Brazilian market and represents Petrobras’ seriousness and strong commitment to the sector.

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