1. The Relationship between Good
Governance, Social Responsibility
and Sustainability
José Sergio Gabrielli de Azevedo
CEO
December, 8th 2011
1

2. Some overarching themes ...
12 160 145,66
World population (billion) Dated brent (US$/bbl) (July, 3, 2008)
140
10
120
8 100
6 9,42 80
8,27
6,46 60
4 4,93
5,66
4,16 40
3,37
2 2,13 2,69 34,04
1,72 20
1,08 1,14 1,19 1,24 1,34 1,43 1,49 9,00 (Dec, 10, 1998) (Dec, 24, 2008)
0,81 0,91 1,01
0 0
1950 1960 1970 1980 1990 2000 2010 2020 2050 2100 mar-94 mar-97 mar-00 mar-03 mar-06 mar-09
More developed regions Less developed regions
Critical uncertainties:
4000
Oil demand year-over-year growth (kbpd) Short and medium-term issues:
3000  Price volatility effects: recession fears,
crowding out of resources to other
2000
segments
1000  Govt budgets: effects on producing
and consuming countries
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010  Security of supply and demand
-1000 Long-term issues:
-2000  How energy-intensive will population
growth and non-OECD demand be?
-3000
 How will it affect climate change?
OECD Non-OECD
Sources: United Nations, BP Statistical Review and Bloomberg 2

3. ... and the role of big companies
Big companies’ decisions
affect the whole Human
socioeconomic Rights
environment Community
Involvement Labour
and Practices
Development
 What are the implications of
corporate size in countries with Organizational
limited infrastructure?
 Energy is essential to all segments of
Governance
society. How can energy companies
reconcile this with shareholder Consumer The
profits? Issues Environment
 In countries where big companies
play a key role in the energy
segment, how to cope with society’s Fair
demands (especially where finite Operating
resources are concerned)? Practices
Source: ISO
3

4. The triple bottom line approach, ...
Multiple stakeholders
bring conflicts and
convergences. The
corporation must find a
balance between
conflicting objectives
Source: UN
Consumers:
Government:
cheap and Shareholders:
taxes, energy security and
environmentally-friendly profits
jobs creation
fuels
Employees, Suppliers and
Partners: Scientific Community:
Society:
long-term relationships pure and applied science
sustainable development funding
and safety in production
processes
4

5. ... other key environmental and social issues to the oil industry ...
Transparency: Stakeholders’ Focus: Energy supply: Energy
• to be open to involvement: • To shift from • To provide sources:
society’s • To expand the short to safe, efficient • To increase
scrutiny the channels the long term and access to
through sustainable energy
which the energy sources (new
various sources, new
stakeholders technologies,
can have new
access to the production
companies’ processes)
decision
processes
5

6. ... and some of Petrobras’ initiatives, ...
Sustainable Conservation and Work An instrument to High-performance
development in preservation of opportunities and add value to the sports, sports
communities with environmental income generation. cultural identity education,
low social resources and and diversity of participation
inclusion, located social and Brazil. sports and sports
in areas directly environmental 2010-2012: R$ memory.
901,3 million R$ 311 million
influenced by awareness. since its first round R$ 265 million until
Petrobras. 2008-2012: R$ 500 in 2003. 2014
million
Investments in social, cultural, environmental and sports projects (R$ million)
707,9
591 585,8 554,5
464,5
2006 2007 2008 2009 2010
6

7. ... best practices and commitments
Petrobras’ Code of Ombudsman’s
Internal Auditing
Ethics Office
Frequent and open
Initiatives against Policies for
dialogue with the
discrimination suppliers
Unions
Investor Relations’ The Global Dow Jones
Best Practices Compact Sustainability Index
7

8. 8
8