Brazil: Petrobras Issues Sustainability Report 2010

Petrobras released its 2010 Sustainability Report yesterday, July 11. The Report presents information about the Company’s performance, reflecting how the three pillars of its corporate strategy, integrated growth, profitability, and social responsibility, are integrated. It also details the progress Petrobras has made in meeting the ten principles set forth under the United Nations Global Compact, which the company signed in 2003.

The publication highlights the three main milestones the Company achieved in 2010: operations getting underway at the Lula field Pilot System; the raising of R$120.2 billion in funds, the outcome of the world’s largest ever public share offer; and the signing of the Transfer of Rights Agreement, which gave the company the right to produce 5 billion barrels of oil equivalent in areas in the pre-salt cluster that have not yet been put up for bid.

Environmental area highlights include increased investments in the environment, which in 2010 surpassed the R$2.4 billion mark, some R$457 million more than a year earlier. This amount comprises spending on operating processes and support for environmental projects.

The report also underlines Petrobras’ actions designed to mitigate climate change, particularly in energy efficiency, and discusses the company’s strategic objective of maximizing energy efficiency and cutting greenhouse gas emissions. For 2015, Petrobras’ target is to reduce energy intensity at its refining and thermoelectric plant operations by 10% and 5%, respectively; to decrease flaring at its exploration and production operations by 65%; and to lower greenhouse gas emissions at its exploration and production, refining, and thermal power plant operations by 15%, 8% and 5%, respectively.

In order to achieve these goals, $976 million will be invested in energy efficiency and cutting emissions between 2010 and 2015. The Company invested R$404 million in energy efficiency-related projects alone from 2006 to 2010. These initiatives afforded savings of up to 2,740 barrels of oil equivalent per day.

The Report also includes Petrobras’ actions to make more efficient use of water at its facilities. In 2010, the Company reused 17.6 billion liters of water. On production platforms, seawater is used to reduce the uptake of freshwater from continental watersheds. Upwards of 1.3 billion liters of seawater were desalinated for use by offshore units in 2010. In refining, new wastewater reuse projects that are expected to result in additional annual savings of 13.5 billion liters of water have been planned and are expected to go on stream from 2011 to 2013.

The report section that addresses the Company’s contribution to society provides details on its investments in external projects. Petrobras invested R$707.9 million in upwards of 1,770 social, environmental, sports, and cultural projects.

In sports and social sponsorship, the highlight of 2010 was the launch of the Petrobras Sports & Citizenship Program, the most comprehensive initiative to support sports in Brazil. Through 2014, whether through direct investments or investments incentivized under the Federal Law for the Encouragement of Sports, the program will earmark around R$265 million for four different segments: Performance Sports (boxing, fencing, rowing, taekwondo, and weightlifting), Educational Sports, Participation Sports, and Sports History.

About the report

For the first time ever, the Petrobras Sustainability Report is being printed on Vitopaper, made from several types of recycled plastic. According to Vitopel calculations, producing this type of paper keeps about 85% of the material that is used from being discarded in landfills as plastic waste. No component derived from trees was used to manufacture the synthetic paper, which is water-resistant, can be recycled and uses 20% less printing ink.

Petrobras’ report was prepared pursuant to the guidelines set forth by the Global Reporting Initiative (GRI). It is classified as an A+ application, appropriate for reports that provide information on all key indicators under the guidelines and whose content is subject to external verification. This year, this verification was carried out by KPMG Auditores Independentes. In addition to information regarding the GRI indicators, the report presents data that used in the Ibase Social Balance Model.

[mappress]
Source:Petrobras , July 12, 2011