Petrobras : 2022 Climate Change Supplement

CLIMATE

CHANGE

SUPPLEMENT

-

sumario

Message from Senior Management

Executive Summary

Bibliographical References

Map for TCFD Requirements

Disclaimer

STAFF

Targets, metrics and performance

Scenarios and resilience

Strategies and portfolio

Brazilian context and

voluntary contributions to Brazil's decarbonization journey

Governance, incentives and risk management

Investments and initiatives

Transparency and engagement

2022-2023 cycle Issued in March 2023

1

2

3

4

5

		Message from
7
6

Senior Management

Letter from the Chairman and Lead Director of the HSE Committee

On the update of the Climate Change Supplement, we reinforce our support and our position in favor of initiatives that decarbonize Petrobras' operations, innovate, make our production processes and our products more sustainable, and that promote solutions based on nature that mitigate climate change, in particular, the preservation and expansion of forests.

We recognize the climate urgency, and for more than a decade, Petrobras has been working on decarbonizing its operations, ensuring a robust trajectory of reducing oil and gas operational emissions. In addition to the improvements achieved over the years, we have already announced the ambition to achieve operational emissions neutrality by 2050.

The ongoing climate change imposes the need for actions aligned with the energy transition that will contribute to the sustainability of our planet and our company. In this sense, we support and guide our executives so that the challenges and opportunities associated with the transition are analyzed and correctly addressed.

In the 2023-2027 Strategic Plan, we decided to focus and move forward on new business analyses. We prioritize the hydrogen, wind, and carbon capture segments. In addition, con-

sidering the significant potential of Brazil for highly competitive nature-based solutions carbon credits, we have strengthened our initiatives on forest conservation and incorporated the possible use of offsets as a complementary strategy for decarbonization, focusing on high-quality and high-integrity credits, aligned with international best practices and socioeconomic and environmental co-benefits.

The Climate Change Supplement is part of the dialogue with our stakeholders and demonstrates the resilience of our business and planning, aligned with the objectives of the Paris Agreement and our position in the search for a just and responsible energy transition.

Gileno Gurjão Barreto

Chairman

Marcelo Gasparino da Silva

Lead Director of the HSE Committee

2

CLIMATE CHANGE SUPPLEMENT

1

2

3

4

5

MESSAGE FROM SENIOR MANAGEMENT

Letter from our CEO and Chief Institutional Relations and Sustainability Officer

6

7

Mitigating climate change is one of the significant challenges that humanity urgently needs to face. To achieve that, coordinated and practical efforts by all actors are essen- tial, as the scale and complexity of the energy transition will require time and significant investment.

Scale because secular energy systems must be transformed at their core structure. Current global energy consumption is equivalent to about 100 billion barrels of oil per year, most of which comes from: oil (29%), natural gas (23%), and coal (26%) (IEA, 2022).

Complexity because there are multiple choices for decarbonization routes that reduce emissions equivalently; however, with different economic and social implications. In all scenarios, an increase in society's interest in less carbon-intensity products is expected - and oil and its products are no exception.

Thus, we understand that promoting economic, social, and environmental development is a complex task. Still, Petrobras believes it is possible and is ready to contribute to a safe and just energy transition.

Petrobras' contribution includes (i) investing resources and technologies in the production of carbon-efficientoil in Brazil, generating energy and relevant revenues to finance a responsible energy transition; (ii) investing in the capacity to offer gas and dispatchable energy to enable a high share of renewables in the Brazilian electricity matrix; (iii) investing and exploring new opportunities in lower carbon intensity products and businesses ; (iv) promoting research and development of new technologies and low-carbon

solutions and (v) investing in socio-environmental projects for the recovery and conservation of forests.

Petrobras also advanced in 2022 in commitments related to climate change: we improved the commitment to reduce absolute emissions by 2030, we increased the commitment to reinject CO2 in CCUS projects, and we improved the methane intensity reduction goal

• an action that is reinforced through our support and agreement with the Oil and Gas Methane Partnership (OGMP 2.0) initiative.

With dialogue and planning, permanently seeking actions that contribute to a just transition from an economic, social, and environmental perspective, the goals set in the Paris Agreement can be reached.

Ethics and transparency are some of Petrobras' core values, which are reinforced through the annual release of our Climate Change Supplement, a document that presents the position of Petrobras as a sustainable company committed to a world under decarbonization.

Jean Paul Prates

Chief Executive Officer

Rafael Chaves

Chief Institutional Relations and Sustainability Officer

3

CLIMATE CHANGE SUPPLEMENT

1

2

3

4

5

6

7

Executive summary

Our Climate Change Supplement describes how we incorporate the challenges of climate change into our choices and processes following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), whose compliance can be identified in the Map for TCFD Requirements.

Our actions and results related to carbon management and climate change are based on three fundamental pillars: Carbon quantification and transparency; Resilience of our position in fossil facing the low-carbon transition; Strengthening our skills to create value in a low-carbon economy.

Targets, metrics and performance

Reduction of Operational Emissions:

Ambition and Commitments1

Our six sustainability commitments focused on mitigating climate change cover 100% of the emissions under our operational control (scope 1 and 2), offering targets for the 2025 and 2030 horizon. In addition, we set our ambition to neutralize emissions in activities under our control by 2050 and influence partners to achieve the same ambition in non-operated assets. In the 2023-2027 Strategic Plan (SP 2023-2027), we revised three of our commitments aiming at more challenging targets.

For more than a decade, we have been working on decarbonization activities and we have a gradual and consistent GHG emission reduction. These are significant gains in carbon efficiency that their cumulative contribution over time must be considered.

	Decreasing absolute		Ambitions and
	emissions		Targets
			(Baseline -2015)
Total 2015	2022	39% reduction in
78.2	47.7	total operational	Reduction of
emissions	total operational
million	million	since 2015.	absolute emissions
tCO2e	tCO e		by 30% by 2030
	2
Without thermal power plants emissions	(revised from
25% to 30%)
2015	2022	Without thermal
57.5	44.3	power plants	Ambition:
emissions, about a
net zero by 2050
million	million	23% reduction.
tCO2e	tCO2e

The main factors were the low thermal power dispatch in 2022, divestments, and the implemented

initiatives focused on emission efficiency in the operating segments.

4

1 The 2022 emissions performance results presented in this supplement will be verified by a third party. During the verification process, adjustments to performance data may occur. However, significant changes are not expected. All performance results for CLIMATEemissions presentedCHANGEinSUPPLEMENTthis supplement are intrinsic, without using offsets.