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Social 2007 ing

  2. 2. PROFILE Petrobras is a publicly listed company that operates on an integrated basis in the following segments of the oil, gas and power sector: exploration and production, refining, commercialization, transportation, petrochemicals, distribution of oil products, natural gas, biofuels and electricity. Founded in 1953, Petrobras is now the world’s sixth largest oil company, by market value, according to the consulting firm PFC Energy. Leader in the Brazilian oil sector, Petrobras has been expanding its operations, in order to become one of the world’s top five integrated energy companies by 2020. MISSION VISION FOR 2020 To operate in a safe and profitable Petrobras will be one of manner in the energy sector in the five largest integrated Brazil and abroad, showing social energy companies in and environmental responsibility the world and the brand and providing products and services of choice among our that meet clients’ needs and that stakeholders. contribute to the development of Brazil and the other countries in VISION ATTRIBUTES Our activities will be notable for: which the company operates. > A strong international presence > Setting a worldwide benchmark in biofuels > Excellence in our operations, management, human resources and technology > Profitability > Setting a benchmark in social and environmental responsibility > Commitment to sustainable development
  3. 3. MILLENNIUM DEVELOPMENT GOALS There are eight United Nations Millennium Development Goals (MDG) presented in the Millennium Declaration to prioritize the resolution of key challenges for development. The countries should achieve the goals by 2015. Petrobras supports the MDG and encourages other companies and institutions to put them in practice. In 2007, the Company sponsored the MDG Brazil Prize created by Brazilian government to encourage, valorize and give further visibility to good practices that contribute to achieving the goals. MILLENNIUM GOALS Goal 1 Goal 5 Eradicate extreme Improve maternal health poverty and hunger Goal 2 Goal 6 Achieve universal Combat HIV/AIDS, malaria primary education and other diseases Goal 3 Goal 7 Promote gender equality Ensure environmental and empower women sustainability Goal 4 Goal 8 Reduce child mortality Establish a global partnership for development
  4. 4. Contents Message from the CEO 02 Petrobras 05 Integrate role at home and abroad 06 Rise in production, revenue and shares 10 Social and Environmental Responsibility 14 Management challenges in Social Responsibility 16 Environment 67 Report as a management tool 20 Principle 7 — Businesses should support a precautionary approach to environmental challenges 68 Human Rights 23 Role in Health, Safety and Environment 68 Principle 1 — Businesses should support and respect the protection of internationally Climate change 71 proclaimed human rights 24 Mapping, monitoring and reducing impacts 73 Impact on communities 24 Principle 8 — Businesses should undertake Cultural, social and sports investments 28 initiatives to promote greater environmental responsibility 75 Principle 2 — Businesses should make sure that they are not complicit in human Consumption of energy, material rights abuses 37 and natural resources 75 Relationship with suppliers 37 Emissions, effluents and waste 78 Human Rights Case 40 Ecosystems and biodiversity 81 Products, compliance and transportation 85 Energy conservation and conscious consumption 87 Labor 43 Principle 9 — Businesses should encourage Workforce 44 the development and diffusion of Health, Safety and Quality of Life 46 environmentally friendly technologies 88 Remuneration and benefits 50 Renewable energies 88 Principle 3 — Businesses should uphold the Environment Case 90 freedom of association and the effective recognition of the right to collective bargaining 54 Freedom of association 54 Transparency 93 Relationship with stakeholders 94 Principle 4 — Businesses should uphold the elimination of all forms of forced and Products and Services 98 compulsory labor 56 Principle 10 — Businesses should work Rejection of forced labor 56 against corruption in all its forms 100 10 Principle 5 — Businesses should uphold the Anti-corruption and anti-bribery policies 100 10 effective abolition of child labor 58 Transparency Case 103 10 Guarantee of the rights of the child and adolescent 58 Principle 6 — Businesses should uphold the Appendices 104 10 elimination of discrimination in respect of employment and occupation 60 Prizes 108 10 Against prejudice and discrimination 60 Materiality 109 10 Labor Case 64 Indicator Matrix 110 11
  5. 5. That same year when the Company’s social responsibility policy was established, the topic was added to the corporate functions in the revision of the 2020 Strategic Plan. The Petrobras challenge is now to become an international benchmark in social responsibility for business management, contributing to sustainable development. JOSÉ SERGIO GABRIELLI DE AZEVEDO, Petrobras CEO
  6. 6. Message from the CEO 2 MESSAGE FROM THE CEO
  7. 7. The year 2007 was a landmark for Petrobras. It was consi considered to be the world’s sixth largest oil major and a highlight of its operations was the major petroleum high disco discoveries in Brazil. The Tupi agglomeration alone has a potential to significantly increase the levels of current Brazilian reserves. Petrobras acknowledges and assumes its prime responsibility for the environment. For this reason it invested two billion reais in the environmental aspects of its operations and external sponsorship projects. The Company strives for eco-efficiency and is constantly developing groundbreaking solutions to minimize the waste of resources and impacts of its operations. Another highlight is the increasing biofuel investments. Petrobras is in the international fore- front of companies with potential to operate in this segment and to contribute to mitigating the effects of global warming. Preserving the Amazon rainforest is a strategic priority for the Company. The Petrobras Center of Environmental Excellence in the Amazon, launched in 2007, combines technology and scientific know- how for the region’s sustainable development and to prevent and reduce risks caused by the industry’s intervention. That same year when the Company’s social responsibility policy was established, the topic was added to the corporate functions in the revision of the 2020 Strategic Plan. The Petrobras challenge is now to become an international benchmark in social responsibility for business management, contributing actions of the Petrobras Citizen and Development to sustainable development. Another 2007 highlight program and evaluate its results. Annual public selec- was the renewal of the Company’s participation in the tion processes also seek to assure transparency of new Dow Jones Sustainability Index and São Paulo Stock incoming supported projects and make access to the Exchange (Bovespa) Business Responsibility Index, Company investments more democratic. both benchmarks for investors looking for socially Petrobras agrees to align its management with responsible businesses. the ten principles of the UN Global Compact, to In 2007, Petrobras invested R$ 585.8 million which it is a signatory since 2003. This report also in cultural, environmental, social and sports proj- informs about the Company’s progress in fulfilling ects. The aim of the new Petrobras Citizenship and these objectives. Development social program that started in 2007 We hope that this Social and Environmental is to invest R$ 1.3 billion by 2012 in projects that Report achieves its objective: to inform Petrobras contribute to reducing poverty and social inequal- stakeholders about our main actions, impacts, risks ity in Brazil. and opportunities in the economic, environmental The program’s lines of action are to generate and social areas. income and job opportunities, professional training Good reading! education and guaranteeing the rights of the child and adolescent. A set of performance targets and José Sergio Gabrielli de Azevedo indicators make it possible to monitor the strategic Petrobras CEO WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 3
  8. 8. 4 PETROBRAS
  9. 9. Petrobras The market value of Petrobras, which operates in 27 countries, was R$ 429.9 billion in 2007, 86.6% up from the previous year. Growth in dollars was 125.2%, equal to US$ 242.7 billion. Company investments were R$ 45.3 billion, the highest annual figure ever for the Company. Some of the year’s highlights are the discovery of a recoverable volume of five to eight billion barrels of light oil and natural gas in the Tupi area in Santos Basin; announcement of the Petrobras 2020 Strategic Plan and 2008-2012 Business Plan; purchase of Suzano Petroquímica and takeover of the Ipiranga Group business in association with Braskem and the Ultra Group. WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 5
  10. 10. PROFILE Integrate role at home and abroad ACTIVITIES AND MARKETS Petrobra Petrobras operates on an integrated basis at home The trade of its products include on the Brazilian and abro abroad, with business strategies focusing on market the sale of byproducts in diesel, gasoline, fuel exploration and production (E&P); downstream explorat oil, naphtha, LPG (liquefied petroleum gas), jet fuel (refining, transportation and trade); petrochemi- ( (aviation kerosene) and others. Various markets world- cals; distribution; gas & power; and biofuels. It is c wide are supplied by the Company. Product purchase a Brazilian public listed company incorporated as and sale operations outside Brazil are up 49% against a joint stock business corporation linked to the 2006, reaching 559,000 barrels per day (bpd). Some Brazilian government’s Ministry of Mines and Energy. highlights are the increase in gasoline sales in the USA The Company’s economic activities are freely com- and petroleum in Colombia, plus the start of bunker petitive with other companies depending on market sales with low sulfur content in Europe. conditions. Petrobras is regulated by the Corporation The subsidiary Petrobras Distribuidora oper- Act (Law no. 6404 dated December 15, 1976) and the ates throughout Brazil, with around 6,000 service Company bylaws. stations and 740 BR Mania convenience stores. The Petrobras System consists of Petróleo This network includes the resale of fuels and other Brasileiro S.A. (Petrobras holding) and its subsidiar- products, such as lubes, in addition to services. The ies, affiliates, joint affiliates and specific purpose com- Company also sells considerably larger volumes of panies. Its subsidiaries include Petrobras Química fuels, lubes, special products, asphalt, emulsions S.A. (Petroquisa), Petrobras Distribuidora S.A. and energy to major consumers, such as industrial (Petrobras Distribuidora) and Petrobras Transporte plants, governments, haulage companies and ther- S.A. (Transpetro). moelectricity plants. 6 PETROBRAS
  11. 11. CORPORATE GOVERNANCE The corporate governance structure is based on the national and international markets and strategies. In Board of Directors, Fiscal Committee, Executive order to assure that conflicts of interest are prevented, Board, Administration Advisory Committees, Business the Good Practices Code addresses Petrobras in-com- Committees and Management Committees. The board pany policies, such as the information dissemination At the end of directors consists of nine members elected by the policy on a relevant act or fact, and the securities nego- of 2007, the General Shareholders’ Meeting, responsible for guid- tiation policy, for example. These policies address Company’s ance and senior management of the Company. The issues relating to the use of privileged information board of directors sets the general business direction of and conduct of the administrators and senior manage- market value the Company, defining mission, strategic objectives and ment in Petrobras. was guidelines, in addition to approving the Strategic Plan. The executive board consists of the CEO and six direc- The Fiscal Committee of a permanent nature consists of five members, also elected by the General 429.9 tors elected by the board of directors and is responsible for the Company’s business management. Shareholders’ Meeting and is responsible for supervis- ing the administrators’ acts and examining financial billion Since 1999, the chair of the board of directors is statements, for example. reais, or 86.6% occupied by a member with no executive duties or The purpose of the board of director committees, more than in any other ties to Petrobras. Only one member of the consisting of three members from the Board, is to help 2006 board has executive powers – the CEO of Petrobras. the Committee by analyzing and recommending spe- Of the nine directors he is the only one that does not cific matters. The Business Committee, consisting of conform to independence requirements. The direc- members of the Executive Board and other Company tors are elected by the General Shareholders’ Meeting executives, examines and issues an opinion on relevant without influence of the Executive Board. The corpo- corporate topics, and which involve more than one rate governance guidelines provide that the board of business area. The Management committees consist of directors each year assess its performance and the the Company’s executive managers and act as discus- role of the CEO and Petrobras executive directors. sion forums on specific topics, whose results are later These assessment mechanisms are in the process of taken to the Business Committee. Today Petrobras being implemented. has 12 management committees: Supply; Exploration The corporate governance guidelines also include & Production; Gas & Power; Organization Analysis the skills and experience expected of the directors, and Management; Internal Controls; Marketing and that must meet the requirements of personal integrity, Brands; Human Resources; Social Responsibility; no conflicts of interest, time availability, motivation, Risks; Health, Safety and Environment; Information affinity with Company values, and familiarity with Technology; and Petrobras Technology. the best corporate governance practices. Moreover, Under its corporate bylaws, Petrobras activi- experience as a top executive is valorized, in addition ties obey the Basic Organization Plan, approved by to knowledge of finance, accounting, energy sector, the board of directors, which contains the general Petrobras 2020 Strategic Plan The Petrobras 2020 Strategic Plan and 2008-2012 Business Plan were announced in August. The Strategic Plan has two structural changes. The first is the division by business segment, and no longer by business area. Petro- bras now focuses its attention on six business segments: Exploration & Production (E&P), Downstream (Refining, Transportation and Trade), Petrochemicals, Distribution, Gas & Power and Biofuels. The second refers to new management challenges, with focus on capital discipline, human resources, social responsibility, climate change and technology. The Business Plan foresees for 2012 an oil and natural gas production of 3,494,000 barrels of oil equivalent per day (boed), of which 3,058,000 boed will be produced in Brazil. Investments are also expected of US$ 112.4 billion in the 2008-2012 period with 87% in Brazil and 13% elsewhere. WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 7
  12. 12. PROFILE structure and defines the nature and attributes of and by four Business Areas (Supply, Exploration & each body and subordination, coordination and Production, Gas & Power and Worldwide). Each control relations for it to operate. of them is accountable to its contact director, in The current organizational model of Petrobras addition to the Corporate area that is accountable consists of the Corporate, Finance & Service areas to the CEO. P-50 platform in Albacora Leste, Campos Basin PETROBRAS TRADEMARK Petrobras System brand management, directly linked and Evolua polish wax. Some of the main ser- to business development and protection and in line vices provided are convenience stores (BR Mania with the Company’s worldwide expansion, admin- and Spacio 1); car wash system in service stations istrated in 2007 a total of 4,367 registrations of this (Lavamania and Acuocenter); quality programs (De intangible asset, with investments in sponsorships, Olho no Combustível – keeping an eye on the fuel - and advertising, international communication, strategy, Calidad Controlada Petrobras); lubrication center in development and protection of the corporate image service stations (Lubrax Center); fuel credit card and brands. According to the ranking published in (Petrobras Card); fleet automation system (Petrobras 2006 by the consulting firm Brand Analytics, based on Flota); loyalty (Petrobras Premmia) and relation- public data, the institutional trademark was worth US$ ship programs; and cultivating commercial clients 1.012 billion, a 37% increase over the previous year. and partners (360° Petrobras, On the Right Road, Some of the key Company products are: Podium Truck Driver (Siga Bem Caminhoneiro) and Friendly gasoline, Podium diesel, Verana diesel, Biodiesel, BR Mechanic (Amigo Mecânico). Aviation, Lubrax lubes and waxes, Lubrax Aviation 8 PETROBRAS
  13. 13. Petrobras Organizational Structure The Petrobras organization model, approved by the Board of Directors in October 2000, is constantly being refined. Changes in the Company’s organizational structure in 2007 led to the adoption of a new organizational and administrative model in certain units. Examples of this are the broadened scope of operations in the Exploration & Production business unit in the Solimões Basin, the creation of temporary organizational structures for the implementation of large-scale undertakings, and the transferring of telecommunications activities to the Services area. Approval was granted for the structural reorganization of business units abroad, linked to the International business area. FISCAL COUNCIL BOARD OF DIRECTORS Ombudsman Internal Auditing EXECUTIVE BOARD CEO Management Business Strategy & Systems Performance Development New Legal Area Business Human CEO’s General Institutional Resources Office Secretary Communication Exploration International Financial Area Gas & Power & Production Downstream Services Area (Upstream) Health, Safety & Corporate Finance Corporate Section Corporate Section Corporate Section Corporate Area the Environment Financial Natural Gas Planning & Risk Logistics & Production Business Technical Logistics Materials Management Equity Stakes Engineering Support Research & Energy Operations Business Finance Services Refining Development & Equity Stakes Development (Cenpes) Accounting Energy Exploration Petrochemicals & Southern Cone Engineering Development Fertilizers Region Americas, Africa Information Taxation Marketing & Sales North–Northeast Marketing & Sales Technology & Tele- & Eurasia communications Investor Relations South–Southeast Shared Services WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 9
  14. 14. PERFORMANCE IN 2007 Rise in production, revenue and shares OPERATIONS HIGHLIGHTS Petrobra Petrobras operates in 27 countries: Angola, Argentina, sales performance on the home and foreign markets. Bolivia, Brazil, Chile, China, Colombia, Ecuador, B Net income was R$ 21.5 billion, 17% lower than in England India, Iran, Japan, Libya, Mexico, Mozambique, I 2006 because of factors such as the valorization of the N Nigeria, Pakistan, Paraguay, Peru, Portugal, Senegal, real, import costs for petroleum and byproducts, and S Singapore, Tanzania, Turkey, Uruguay, USA and extraordinary expenses with personnel with regard to Venezuela. Exploration and production are carried the new pension plan agreement. The operating cash out in 20 countries. generating capacity (EBITDA) continued stable in At the end of 2007, the Company’s market value relation to the year before. was R$ 429.9 billion, 86.6% more than in 2006. In Consolidated investments rose 34% compared dollars, its market value reached the US$ 242.7 bil- to those in 2006, and reached the record figure of lion mark, which is a growth of 125.2% compared to R$ 45.3 billion. The exploration and production the previous year. According to consulting firm PFC segment received 47% - the largest share of direct Energy, it ranks as the sixth largest oil major in the investments. world based on market value. The Petrobras financial In November, Petrobras announced the discovery and operational results, the rise in international prices of a major oil-bearing area in Brazil, stretching from of a barrel of petroleum and the major oil discover- the Espirito Santo, Campos to Santos basins. The ies were decisive factors in the performance of the discovered volume in the Tupi accumulation alone, Company shares in 2007. part of this new frontier, has potential to increase the The net operating income was R$ 170.6 billion, country’s current reserves by 50%. 8% more than in 2006, the result of the improved Another milestone was the start of deepwater 10 PETROBRAS
  15. 15. production in Northeast Brazil in the Piranema field Petrobras service station in off the coast of Sergipe. The processed oil is consid- Rio de Janeiro ered the lightest ever found in deepwater in Brazil and essential for lube production. In 2007 the total volume of 2.301 million boed of oil and natural gas produced is almost the same level as the previous year. In Brazil, 2.065 million boed was produced and 236,000 boed outside Brazil, including 1.918 million barrels of oil, natural gas liquid (NGL) and condensate and 383,000 boed of natural gas. On December 31 the volume of the Petrobras proven reserves of oil, condensate and natural gas was 15.01 billion barrels of oil equivalent (boe), representing Petrobras 0.1% less than the previous year. invested The total byproduct production was 2.046 mil- lion bpd, or 8% more than in 2006. Ninety percent of 45.3 installed capacity was used in Brazil and 85% in the other countries. billlion Petrobras, the Ultra Group and Braskem signed reais in 2007 an agreement to buy the Ipiranga Group shares for a total sum of four billion dollars, of which Petrobras disbursed US$ 1.3 billion. The Company now has ADR. This alteration was intended to make it easier the distribution network of the Ipiranga Group in for the small investor to buy ADRs on the New York North, Northeast and Midwest Brazil, plus 40% of stock exchange. the Group’s activities in the petrochemicals sector. Considering the implementation of major proj- In 2007, it also bought out Suzano Petroquímica for ects in the Company, two are worth mentioning: the the total price of R$ 2.7 billion. Rio de Janeiro Petrochemical Complex (Comperj), Petrobras signed a lease agreement of R$ 45 mil- which will process 150,000 bpd of oil to produce lion with the company Emae for a 17-year rental of petrochemical raw materials and byproducts from the Piratininga thermoelectric power plant. The plant 2012 on; and the Northeast Refinery (Abreu e Lima in the city of São Paulo is now part of the Petrobras Refinery), under construction in Pernambuco, with generation complex. its start up expected for 2010 and production capac- Although there has been no change in the ity of 140,000 bpd of diesel. For 2014 the Premium Petrobras capital stock structure in 2007, the ratio Refinery is to start operating, although without a fixed was altered between the shares and the American site, which will process 500,000 bpd of heavy and sour Depositary Receipts (ADRs) to two shares for each oil from the Campos Basin. Assets in Bolivia In June 2007 all the shares in Petrobras Bolivia Refinación S.A. (PBR) were transferred to the state-owned oil Company Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) for US$ 112 million. In 2006, the Bolivian govern- ment decided to nationalize most of the shares of PBR, owner of Santa Cruz and Cochabamba refineries. Sub- sequent events were negotiation of advanced fair compensation with the Bolivian authorities; continuation of Petrobras in the partnership, on the condition that it keeps its policies of health, safety and environment and human resources in the refinery operations; and independent assessment of the share value, according to criteria normally adopted for this type of transaction. The sale of all shares to YPFB was the best solution in the interest of both companies. The role of Petro- bras in Bolivia is currently focused on the exploration and production, and gas and energy segments. WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 11
  16. 16. PERFORMANCE IN 2007 PETROBRAS FIGURES SALES VOLUME (‘000 BARRELS PER DAY) 2007 COMPARISON WITH 2006 (%) Brazil 2,035 4 Byproducts 1,725 3 Diesel 705 5 Total Gasoline Fuel oil 300 106 -3 6 byproducts Naphtha 166 1 were Liquefied petroleum gas (LPG) 206 2 Jet fuel 70 9 2.046 Other 172 3 million Alcohols, nitrogen compounds, biodiesel and other Natural gas 62 248 41 2 barrels a day, Other countries 1,204 11 or 8% above Exports 618 6 2006 International sales 586 17 Total 3,239 6 COMPOSITION OF CAPITAL STOCK SHAREHOLDERS SHARES % Federal government 1,413,258,228 32.2 BNDESPar 334,269,831 7.6 ADR (common stock) 695,675,776 15.9 ADR (preferred capital stock) 675,831,674 15.4 FMP – Petrobras employee severance indemnity fund 102,326,421 2.3 Aliens (CMN Resolution no. 2689) 341,974,795 7.8 Other individuals and companies 823,701,645 18.8 Total 4,387,038,370 100.0 NOMINAL VALORIZATION IN 2007(%) PETROBRAS SYSTEM Petrobras common stock 92.7 Employees 68,931 Petrobras preferred stock 77.5 Shareholders 272,952 ADR PBR (common) 123.8 Exploration 70 drilling rigs (43 offshore) ADR PBR (preferred) 107.5 Producer wells 9,569 (828 offshore) Ibovespa 43.7 Production platforms 109 (77 fixed; 32 floating) Amex Oil 31.3 Refineries 15 Dow Jones 6.4 Pipelines 23,142 km Nasdaq 9.8 Tanker fleet 55 own Market value (R$ million) 429.9 Service stations 6,963 Fertilizers 3 plants Thermoelectricity plants 15 In 2007 the total significant financial incentive from the government was R$ 2,528.9 billion. 12 PETROBRAS
  17. 17. VALUE ADDED STATEMENT YEARS ENDING DECEMBER 2007 AND 2006 (R$’000) (R$’000) 2007 2006 Income Sales of goods and services and non-operating results 220,153,532 206,298,241 Provision for settling doubtful debts – constitution (104,156) (13,045) 220,049,376 206,285,196 Inputs acquired from third parties Consumables (26,304,617) (24,409,419) Cost of merchandise for resale (36,803,166) (31,470,438) Energy, outsourcing and other operating expenses (28,495,668) (22,596,832) (91,603,451) (78,476,689) Gross added value 128,445,925 127,808,507 Retentions (depreciation & amortization) (10,695,825) (9,823,557) Net added value produced by company 117,750,100 117,984,950 Added value received in transfer Income from holdings in relevant investments (582,742) (189,936) Financial income – includes monetary and exchange variations 2,506,543 2,388,152 Amortization of share premiums and discounts (97,913) (43,279) Rent and royalties 562,307 554,750 2,388,195 2,709,687 Added value for distribution 120,138,295 120,694,637 Distribution of added value Personnel & administrators Wages, benefits and charges 7,059,652 5,952,525 Employee and administrator profit sharing 1,011,914 1,196,918 Retirement and pension plan 2,872,894 1,384,879 Health care plan 1,867,607 1,860,478 12,812,067 10,394,800 Taxation Taxes, charges and contributions 54,374,015 53,963,591 Deferred income tax and social contribution 477,234 766,329 Government interest 15,753,525 17,311,004 70,604,774 72,040,924 Financial institutions & suppliers Interest, exchange and monetary variations 6,438,549 3,720,347 Rental and charter expenses 7,028,290 7,026,343 13,466,839 10,746,690 Shareholders Interest on own capital and dividends 6,580,557 7,896,669 Holdings of non-controlling shareholders 1,742,826 1,593,303 Withheld earnings 14,931,232 18,022,251 23,254,615 27,512,223 Distributed added value 120,138,295 120,694,637 WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 13
  18. 18. Social and Environmental Responsibility
  19. 19. In 2007 major advances were made in the field of the Company’s social responsibility, which were to reflect on management and its stakeholder relations. In its continuous striving to align its operations with the ten principles of the UN Global Compact, Petrobras participated in and undertook projects that evidence its commitment to reducing social inequalities and minimizing environmental impacts of its activities. In recognition, its participation in Dow Jones Sustainability Index (DJSI) and São Paulo Stock Exchange Business Sustainability Index (ISE - Bovespa) was renewed.
  20. 20. COMMITMENT TO SUSTAINABLE DEVELOPMENT Management challenges in Social Responsibility The Man Management Committee for Social Responsi- Assessing Social Responsibility Reports, and the bility is the main deliberative body on related issues Diversity Committee. in the Petrobras System. It is linked to the Business th In 2007, 23 areas of Petrobras Holding and three Committee and its members are executive manag- Com subsidiaries were represented on the Committee for fr ers from 13 areas in the Company, in addition to the Drafting and Assessing Social Responsibility Reports. subsidiaries Transpetro, Petrobras Distribuidora and One of its responsibilities is to prepare content for the Petroquisa. Social and Environmental Report and collect informa- Its main tasks are to create Social Responsibility tion for questionnaires that resulted in the renewal of (SR) corporate guidelines and strategies, including its participation in DJSI and ISE–Bovespa. aspects of stakeholder relations. It is also up to this In order to increase the awareness of senior man- Committee to monitor the Company’s related activi- agement with regard to SR matters, Petrobras contin- ties and projects, and to assess the performance and ued with the Management Capacity Building Project, propose actions for alignment and integration. which began in 2006. The project is a partnership with Some of the matters discussed during 2007 are Uniethos, an institution specializing in SR capacity the preparation of the SR policy, inclusion of social building and sustainable development for the business responsibility as a corporate role in the 2020 Strategic and academic sectors. The content presents the main Plan, the Petrobras Citizen and Development pro- SR principles and its impacts, risks and opportuni- gram, Gender Equality action plan, and the SR ties in the oil and gas sector. The Company organized indicators and targets in the Company Balanced training for the members of the Board of Directors, Scorecard. Two committees are directly related to Executive Board, SR Management Committee and the Committee: the Committee for Drafting and Institutional Communication managers. 16 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
  21. 21. Sustainability Guidelines for the Amazon The Company used the concept of sustainable de- velopment to create the Sustainability Guidelines for Petrobras Exploration and Production in the Amazon. The guidelines were prepared by specialists and agen- Social Responsibility Policy cies working in the Amazon region, and address topics such as: protecting biodiversity; operating ecoefficiency; Petrobras considers social responsibility to be “the contingency control; and cultural, economic and social interfacing. form of ethical and transparent integrated business The concept of sustainability must be considered management with all stakeholders, promoting at all stages in the life cycle of the projects and there must be equal priority between the economic, environ- human rights and citizenship, respecting cultural mental and social variables. The guidelines also seek to and human diversity, against discrimination, minimize interference in the natural and ethnic-cultural degrading work, child and slave labor, and processes as well as promote social inclusion. contributing to sustainable development and reducing social inequality”. Petrobras started up the pilot SR capacity building project for general and executive manag- 1 · Corporate Performance · To ensure that ers, based on the Globally Responsible Leadership corporate governance of the Petrobras System Initiative (GRLI). The GRLI consists of executives is committed to ethics and transparency in from companies and business schools in five conti- stakeholder relations. 2 · Integrated management nents and was created by the European Foundation · To ensure integrated management with for Management Development (EFMD), with the social responsibility in the Petrobras System. support of the UN Global Compact. The pilot proj- 3 · Sustainable Development · To conduct ect was tailor-made for Petrobras, in a partnership between Petrobras University, EFMD and Dom Petrobras System business and operations with Cabral Foundation. The first module began in 2007 social responsibility, fulfilling its commitments in and will continue during 2008. accordance with UN Global Compact principles and contributing to sustainable development. SOCIAL RESPONSIBILITY IN 4 · Human Rights · To respect and support human THE 2020 STRATEGIC PLAN rights recognized internationally, basing the actions When reviewing the 2020 Strategic Plan, social of the Petrobras System on the promotion of the responsibility now plays a corporate role with a spe- principles of decent work and non-discrimination. cific management challenge: “to be an international benchmark in social responsibility in business man- 5 · Diversity · To respect the cultural and human agement, contributing to sustainable development”. diversity of its workforce and the countries where The 2020 Vision attributes include commitment to it operates. 6 · Labor Principles · To support the sustainable development and the Company’s recog- eradication of child, slave and degrading labor in nition as a benchmark in social and environmental the production chain of the Petrobras System. responsibility. 7 · Sustainable Social Investment · To seek The Petrobras Social Responsibility Policy was sustainability of its social investments to achieve created with the same objective to centralize aspects in the areas of integrated management, sustain- decent and productive social inclusion. able development, human rights, diversity, decent 8 · Workforce Commitment · To assure the work, sustainable social investment and workforce commitment of its workforce to the social commitment. responsibility policy of the Petrobras System. WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 17
  22. 22. Vegetable garden in the Family Farming along Pipelines project, Rio de Janeiro SUPPORT FOR PRINCIPLES ISO 26000 - Petrobras continues to participate in AND PROJECTS drafting the ISO 26000, the future international stan- Global Compact — Petrobras has been signatory dard on social responsibility to be launched in 2010. to the UN Global Compact since 2003 and its CEO This standard is being developed by the International is a member of the International Board since 2006. Organization for Standardization (ISO) — the top Petrobras is the only Latin American company to sit world organization in developing technical regulations on the Council. In 2007 the Company attended the and standards — in a multi-stakeholder process with International Council meetings and was the mas- participation of representatives from industry, work- ter sponsor of the 2nd Global Leaders Meeting in ers, government, non-governmental organizations, Geneva, Switzerland. The Company was also repre- consumers and academic institutions from more sented at the World Network Meeting in Monterrey, than 70 countries. Petrobras attended the two interna- Mexico, where delegations from different countries tional working group meetings — in January in Sydney, discussed their experiences and know-how. In Brazil Australia, and in November in Vienna, Austria — and the Company is a member of the Brazilian Global organized thematic workshops for the local Global Compact Committee as corporate vice-president Compact networks in Brazil and Mexico. since 2006. To further discussion about the ISO 26000 The Social and Environmental Report is sent every in Brazil, Petrobras signed a partnership with the year to UN Global Compact as its Communication Brazilian Association for Technical Standards on Progress (COP). The submission of COP is one (ABNT). Thematic seminars were held in a number of the conditions for organizations to stay active in of Brazilian state capitals to spread knowledge about the Compact. the future standard. 18 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
  23. 23. COMMITMENT TO SUSTAINABLE DEVELOPMENT It is one of the companies that contributed to the representing the upstream and downstream sectors ISO SR Trust Fund, which supports the participation of the oil and gas industry, specifically on social and of developing countries with finance problems in the environmental issues. The objective of Ipieca is to international meetings. create and promote solutions so that all practices Global Reporting Initiative — The Global can be socially and economically feasible for the Reporting Initiative (GRI) is an international institu- oil and gas industry, offering a forum for discussion tion that provides global guidelines for sustainability and encouraging ongoing improvement of the indus- reports through multi-stakeholder polls. The GRI try’s performance. The Company is a member of the model is used by the major companies worldwide Association’s SR committee. to facilitate comparison between the presented data Its members agree to contribute to sustainable and information. Since 2006, the Company has been development, supply safety and renewable energies an Organizational Stakeholder (OS) member of GRI. with social and environmental responsibility; run its In 2007 Petrobras was elected by the other OS to the operations and activities with business ethics; develop GRI International Stakeholders Council, becoming and encourage practices and solutions with others in the one of the representatives of the Latin American industry; and engage its stakeholders, considering their industry segment. expectations, ideas and visions, working together with World Business Council for Sustainable governmental and non-governmental organizations. Development (WBCSD) — In 2007 the Company Arpel — The Company is one of the 29 members finalized its process that began in 2006 to join the of the Regional Association of Oil and Natural Gas WBCSD and became the sixth Brazilian company to Companies in Latin America and the Caribbean sign an agreement with the institution. The WBCSD (ARPEL). Its mission is to promote and facilitate brings together more than 200 companies worldwide, development and integration of the oil and natural including major international corporations, to further gas industry, reinforcing its reputation and interac- sustainable development through business solutions. tion with society. In Brazil, Petrobras is member of the Brazilian Petrobras is represented in eight committees and Business Council for Sustainable Development, as chairs the Corporate Social Responsibility Committee, vice-president of the institution’s Committee for whose working focus 2007-2011 is to implement SR Corporate Responsibility. among Arpel members, promote community devel- International Petroleum Industry Environ- opment programs in the oil and gas industry, topics mental Conservation Association (Ipieca) — relating to indigenous peoples and governance and Petrobras is a member of Ipieca, a global association energy integration. In 2007 Petrobras became a member of the World Business Council for Sustainable Development and one of the six Brazilian corporations to sign an agreement with the institution WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 19
  24. 24. THE SOCIAL AND ENVIRONMENTAL REPORT (SER) Report as a management tool The Social and Environmental Report (SER) is a valu- Socia This Report contains information referring to able management tool for the Company. It is not only m actions between January and December 2007 by the a tool for transparency and means of disseminating too Petrobras Holding in Brazil and wherever it oper- the principal actions taken during the year before p ates, and the subsidiaries Petrobras Distribuidora, pu its publication, but also plays the role of supporting Transpetro and Petroquisa. the assessment of the form of SR management in the This year the Company decided to adopt only the Petrobras System. GRI indicators, internationally recognized by busi- The Committee for Drafting and Assessing Reports nesses and institutions that publish sustainability on Social and Environmental Responsibility is respon- reports. With this change, then, the number of indica- sible for producing the report, which is coordinated by tors presented dropped sharply compared to previous the Institutional Communication Manager. publications, which made it possible to go deeper into Every year a critical analysis of the SER results in the the topics to be addressed. Vulnerabilities Chart, which evaluates any existing gaps The information was collected by means of the and finds opportunities to improve, and strategies for Follow-up System of Social Responsibility Indicators, SR action. This chart is examined by the Management a database guided by the GRI indicator matrix. This Commitee for Social Responsibility. year, 398 professionals from 26 areas and subsidiaries The Petrobras SER for 2006 was given major recog- collaborated to collect information. The entire con- nitions. For the second year running it was considered tent produced from this information was validated by notable by the UN Global Compact and an example to the Committee for Drafting and Assessing Reports on be followed. It was also entitled the GRI A+ seal for top Social and Environmental Responsibility. level quality report assessed by the institution. The publication is audited and revised externally 20 SOCIAL AND ENVIRONMENTAL RESPONSIBILITY
  25. 25. Young reporters of the Japim community radio in the Mocoronga Communication Network, Pará by KPMG Independent Auditors. Petrobras also once This year Petrobras also produces specific hardcopy again is publishing the Ibase/Betinho Social Report versions for the internal and general publics, as well model, which is part of the set of accounting infor- as online and CD versions. mation sent to the Brazilian Exchange and Securities The online version is permanently available in the Commission (CVM). Company’s website, on the Social and Environmental In response to a GRI recommendation, the Responsibility page, and is accessible to people with Company for the first time performed the Materiality visual disability. Test, a poll for stakeholders. The Test was applied The hardcopy version is distributed to the main For the second in the cities of São Paulo and Rio de Janeiro, with stakeholders, such as internal public, press, govern- year running participation of representatives of the main stake- ment, regulatory agencies, HSE agencies, non-govern- UN Global holders in relation to the Report: internal public, sup- mental organizations and the academic community. Compact pliers, third sector, academic community, investors, This year was the first time when Petrobras produced considered the clients and the general public. They all assessed the the Braille version of the hardcopy report, to make it Petrobras SER Petrobras 2006 SER based on specific criteria and also accessible to the visually impaired. notable could give their opinion and mention subjects to be Examples can be requested through the e-mail and an reported (further details and results in the appendi- or directly from the example ces — page 109). SER Coordinator (address and phone available on the to be followed After obtaining the results, the Company now had sleeve of the third cover). a guide to the most important topics to be addressed, the so-called material indicators, and obtained an Compiling the data reported in the SER is requested from the responsible external assessment of the 2006 SER. areas and processed using their internal controls and operating systems. The Social and Environmental Report is pub- This data is measured according to the instructions by GRI in the indicator protocols. lished every year in Portuguese, English and Spanish. WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 21
  26. 26. Human Rights Petrobras is committed to responsible growth and to help guarantee human rights, both in communities where it operates and in supplier and internal public relations. In 2007 it invested R$ 534 million in cultural, social and sports projects. The Company gives priority to community participation, respecting local cultures and identities and involving community leaders in every region where it operates at home and abroad.
  27. 27. Principle 1 — Businesses should support and respect the protection of internationally proclaimed human rights Impacts on communities COMMUNITY DEVELOPMENT Petrobra Petrobras intends to reduce risks, prevent negative ing communities with poor social inclusion. Its projects social impacts and generate positive results through im and operations are designed to minimize interference in relations relationship programs in communities where it oper- the natural and ethno-cultural processes and promote a ates. It adopts ethical standards with its different social inclusion. s stakeholders by means of permanent communication In 2007, there was no record of violation of indig- and dialogue systems with local leaders, to identify enous peoples’ rights. Before undertaking any activ- and register the impacts of its activities. The Company ity Petrobras upholds official aspects and consults increases its knowledge of local scenarios to assure the licensing bodies and the Brazilian National Indigenous process of social inclusion and improve the quality of Foundation (Funai). The Company supports a set of community life. projects in different regions to promote the rights of The Company undertakes cultural, social and the indigenous peoples. Some examples are the Project sports projects, respecting the communities living to Implement Fish-farming in Indigenous Villages, in around its units. According to the Petrobras code of Palmas and Laranjinha, Paraná; the Bracui Indigenous ethics, it works with community leaders and in accor- Food Security Project, in Rio de Janeiro, and the Kani dance with local characteristics. The Company is com- project, in Tangará da Serra, Mato Grosso. mitted to its relationship with the community based In 2005, Petrobras encountered setbacks in its oper- on respect for diversity, considering its demands and ations in Ecuador from criticism by Ecuadorian social expectations. Petrobras analyses the strong and weak movements on the Company’s plans to start activities points of each place, helping to strengthen neighbor- in block 31 in the Yasuni National Park, Ecuadorian 24 HUMAN RIGHTS
  28. 28. Amazon. The park occupies 70% of the most diverse sis and health, safety and environment recommenda- biomes on Earth and is the home of the Huaorani peo- tions. The work in the operational units is done jointly ple. Petrobras settled the issue by dialoguing with the with non-governmental organizations and other gov- stakeholders. The Company undertook community ernment agencies involved. projects, infrastructure works and actions to preserve Petrobras identifies the basic needs of the regions the indigenous groups belonging to the cultural heri- to improve the quality of life around its projects and tage of humanity. All Petrobras activities in Ecuador sets up projects in support of the communities. On conform to its social responsibility policy. the international scene, the Mexico Business unit has Petrobras prepared a relationship plan with contracts for public works with Pemex Exploration & the communities in the vicinity of the future Rio de Production — a Mexican state-owned Company —, Janeiro Petrochemical Complex (Comperj), planning by allocating funds to the infrastructure works. In actions for local sustainable development and through Colombia, projects help to optimize and increase the ongoing dialogue. Agenda 21 adopted in Comperj is spread of public utilities, contributing to rural and based on the Keeping an Eye on the Environment urban development. Investments of US$ 252,097 program and is being built in conjunction with the helped improve living conditions and quality of life Rio de Janeiro state government, business sector and in these communities, attending 1,670 beneficiary civil society. The Exploration and Production (E&P) households. Petrobras Energia Ecuador complies are using a new licensing method for projects in the with Ecuadorian environmental legislation in the Campos Basin Unit. With the approval of the Brazilian community relations plans and compensation agree- Petrobras Institute for the Environment and Renewable Natural ments with the community in the areas of influence. activities Resources (Ibama), the Environmental Education The Company has invested in electric power projects, positively Program (PEA) collectively develops local Agendas water wells, dispensaries, road improvement, sports impact the 21 with priority actions and projects for affected facilities and associations. economy of the neighboring social groups, based on local problems, Petrobras works to preserve and increase health regions where disputes and potential environmental aspects. care in the neighboring communities with services to it operates, In the Engineering area, responsible for the new monitor and control endemic diseases in its projects. benefiting local Petrobras facilities and expansion, the environmental It is also doing a preliminary study in gas pipeline areas businesses impacts of pipeline projects are assessed after diagno- to control their branch lines and access. Keeping an Eye on the Environment The Keeping an Eye on the Environment program has been run by Petrobras since 2005 and is validated by the Brazilian Ministry for the Environment. The program ratifies the Company’s commitment to sustainable development of the communities within its area of influence. It helps build Local Agendas 21 — an action plan for sustainable development that analyses the status of a state, county or region, with the participation of governments, companies, NGOs and society, to form partnerships for short, mid and long term solutions — and actions to improve the local quality of life. Keeping an Eye on the Environment, by using the fully participative community democracy, is a valuable tool for people’s mobilization and participation by implementing an action plan for community development. RESULTS OF KEEPING AN EYE ON THE ENVIRONMENT PROGRAM UNTIL 2007 Mapped households 269,195 Surveyed households 100,220 Accumulated social environmental information 7,215,840 Community Agendas 21 ready (not implemented) 238 Total possible community Agendas 21 338 WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 25
  29. 29. Artisan in the Carnaúba Viva project, which produces straw mats as padding for Petrobras pipelines LOCAL PARTNERSHIPS Stakeholder relations are ongoing and Petrobras maintains a continuous reciprocal and honest dia- logue with employees, shareholders, opinion setters, NGOs, press, public authorities, clients, communities and suppliers. The Company forms local partnerships for capacity building and subsequent recruitment, and to undertake projects. During the year Brazilian sup- pliers were allocated 70% of the investments in goods and service procurement. By giving priority to the home market, Petrobras contracted US$ 5.24 billion in goods and US$ 34.6 billion in services to a total of US$ 39.84 billion. Petrobras-supplier relations are based on values established in the social responsibility policy and code of ethics. The Company imposes regulations on its suppliers and takes action to develop the market 26 HUMAN RIGHTS | PRINCIPLE 1
  30. 30. IMPACTS ON COMMUNITIES 70% of funds allocated to procurement of goods during the year went to Brazilian suppliers Principle 1 in order to align the supply of procured goods and state. In this way Petrobras seeks to encourage mar- services with the corporate guidelines. ket development for the oil and gas industry and to Every contract for biodiesel production in the include small businesses in the supply chain of this Company plants gives priority to raw material procure- industrial segment. ment from rural family-based producers. Petrobras The Company is aware of the economic impacts hires local labor, providing technical assistance and of its activities. When giving preference to local suppli- capacity building to guarantee income and dead- ers, it helps to maintain small and medium size service lines compatible with the activity. The action plan for providers and form partnerships with cooperatives. Company-related biodiesel units advances rural family- The main indirect economic impacts of Petrobras are based producers by procurement of the production. on paying royalties and special holdings, value added Petrobras encourages setting up seed banks and build- tax collection on goods and services (ICMS) and other ing the productive capacity of the communities, and taxation. The Plan of Investments in Brazil, mentioned prepares studies to benefit farmers’ households. in the 2008-2012 Business Plan, plans to create 917,000 In the Amazon, the Exploration and Production jobs, with 338,000 indirect ones in income effect and Sustainability Guidelines define Company commit- 350,000 in the production chain. Added value in the ment to prioritizing recruitment of local suppliers that country, which measures the contribution of Petrobras work with sustainability. In 2007 54% of the contracts to the Gross Domestic Product (GDP), is an average of signed by UN-AM were with companies in Amazonas around 10% of the Brazilian GDP. WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 27
  31. 31. Businesses should support and respect the protection of internationally proclaimed human rights Cultural, social and sports investments Principle 1 PETROBRAS CITIZENSHIP AND DEVELOPMENT I In the past Petrobras has been including sustain- its decision-making process the interests of its various a ability-related aspects in both its business strategy stakeholders. a and management practices in order to run its busi- In 2007, Petrobras allocated around R$ 534 mil- n ness according to an economically efficient, socially lion to sponsorships and support for cultural, social j just and environmentally responsible model. The and sports projects. This sum includes R$ 26.1 mil- Company therefore has achieved widespread recog- lion for the Petrobras Young Apprentice Program nition at home and abroad for its leading role and and about R$ 43.2 million to the Fund for Childhood capacity to overcome the compensation and mitiga- and Adolescence (FIA), to guarantee children’s and tion of social responsibility, successfully including in adolescents’ rights. The Company is conscious of its role as devel- INVESTMENTS IN SOCIAL PROJECTS IN 2007 opment inducer and in 2007 launched the Petrobras LINE OF ACTION NO. OF PROJECTS R$ ‘000 Development & Citizenship Program, continuing with Income and Job Opportunity Generation 321 58,838 actions considered to be successful or promising in Education for Professional Qualification 206 38,745 the Petrobras Zero Hunger Program, which directly Guaranteeing Children’s and Adolescents’ Rights (1) 508 110,615 and indirectly attended over ten million people with Other 143 14,275 an investment of R$ 386 million. Total 1,178 222,473 The aim of the Petrobras Development & (1) Includes transfer to the Childhood and Adolescence Fund, totaling R$ 43.1 million allocated to 284 projects. Citizenship Program, prepared with the help of dif- 28 HUMAN RIGHTS | PRINCIPLE 1
  32. 32. Petrobras allocated 534 million reais to cultural, social and sports projects ferent areas of the Company and representatives from ence public opinion, social organizations and the civil society and the government, is to contribute to government for discussion of issues relating to citi- local, regional and national development. The objec- zenship and human rights. tive of the program is to offer decent and productive The Petrobras Development & Citizenship inclusion in society to the socially underprivileged. Program is at a new phase, bringing a set of break- By addressing cross-themes, such as gender, racial throughs in the field of the Company’s social man- equality, people with disability, fishermen and other agement. First, funds for social projects are now con- indigenous and traditional communities, the Petrobras sidered investment, which means that their follow-up Citizenship and Development seeks to directly and reflects on the methodology adopted by business proj- indirectly attend 17.6 million people and reach 27.5 ects. So much so that social investment systematics million people nationwide by dissemination actions. are being prepared to base the entire Petrobras System The program, with initial investment targets of on standardizing procedures for analysis, selection, R$ 1.3 billion in the period 2007-2012, supports proj- approval, follow-up and assessment of social projects ects that promote development with equal opportu- backed by the Company, and establishing methodol- nities and valorization of local talents, contributing ogy, criteria and indicators to be adopted. to reducing poverty and inequalities. All sponsored Moreover, the program proposes a set of perfor- projects are based on respect for diversity and act in mance targets for the social project portfolio, which synergy with public policies. The actions are stra- includes: priority for young people with 50% of the tegic, systemic and multi-institutional, to achieve public attended in the 15-29 age group; 20% partici- sustainable results. The program encourages social pants in professional training projects included in the protagonism, co-responsibility, associativism, coop- job market; improved school performance by 60% of erativism and networking, as well as contributing children and teenagers in the projects; completion to local development in the areas affected by the certificates recognized by the National Professional Petrobras System. Certification System awarded to at least 60% of the The strategic actions of the Petrobras Development professional training course; and business plans struc- & Citizenship Program are focused on: tured by at least 70% of the income earning projects. Investments in social projects that foster social The Company is also developing an information transformation of the most fringe communities by system to monitor and appraise those involved in transferring resources on a planned and monitored social projects to measure the results produced by basis; supported actions and follow up the scope of set tar- Reinforcing social organizations and networks gets and objectives. The Company project portfolio by interacting between private, public and social will use this system to be periodically assessed by the agents to form partnerships and alliances, exchang- Management Committee for Social Responsibility. ing experiences, learning, and formulation and dis- This new management model will help sys- cussion on public policies; tematize and measure Petrobras contribution to Diffusion of information on citizenship involving social change in the country. It will also share with communication campaigns to mobilize and influ- Brazilian social organizations its expertise in the WWW.PETROBRAS.COM | SOCIAL AND ENVIRONMENTAL REPORT 2007 29
  33. 33. CULTURAL, SOCIAL AND SPORTS INVESTMENTS management field by spreading good practices, taken for capacity building and technical skills in networking synergy and fulfilling the potential of production and marketing of the products. There is the results. In this way, it can invest strategically, also capacity building for environmental education adding potential to the results. with a view to reforesting the Atlantic rainforest; Petrobras Development & Citizenship has formed The Young who Samba, Work and are Happy: partnerships with several governmental, non-govern- teaches skills to young people in a social risk sit- mental and community organizations all over Brazil uation in poor communities in the city of Rio de within three main lines of action: Janeiro and taking socio-educational measures for adolescents on probation. The project gives pro- Generation of income and job opportunity: with fessional training in five activities of the so-called emphasis on the short term, the actions contribute “Carnival Industry”. The activities in a logical pro- to productive inclusion of the Brazilian population, duction cycle, such as modeling, dressmaking, wire finding more immediate solutions to overcome the working, accessories and headdresses, help gener- poverty in the country. The projects have a strong ate work and income for a segment of society that emancipating and autonomy-furthering nature. It has huge difficulties to find their first job. The proj- encourages the use of technology and offers suitable ect workshops on citizenship and Brazilian culture infrastructure for local production arrangements, to further cultural, economic and social protagonism increase their competitiveness with a view to financial among young people, and encourage them to stay sustainability. Some examples are as follows: on at or return to school. In 2007, partnership with Flour Corridor Project: by means of management Portela Samba School helped create jobs for the technical assistance and ongoing capacity building preparations of the 2008 samba school parade, on to further the skills of productive units, the project the theme of ‘water’, giving the young more knowl- involves 120 farmers and six flour mills of family pro- edge about the environment. ducers in six counties in Pernambuco. The actions aim to revive the manioc production chain in the Guarantee the rights of the child and adolescent: region, reinforce and raise community conscious- a long-term outlook, seeking to break the perpetuating ness of their role in Brazilian society, attending the cycles of poverty in Brazil, and the actions are in line farmers to meet their expectations and needs; with the paradigm of full protection. They address the Ivaporunduva Kilombo Sustainable Development child and adolescent as having rights and absolute pri- Project: the project is designed to further social ority, since they are at a special stage of development. and economic development, generate income and The following are some examples of projects: improve the quality of life for the 150 households. It Implementing the Millennium Goals for Children creates an economic alternative to banana growing in Semi-Arid Brazil — UNICEF Seal of Approved — the major economic activity of the Ivaporunduva Municipality: the idea of the project is to help community, in São Paulo — by organic handling achieve the Millennium Goals for children and and processing of the fruit. The capacity building adolescents in 1,118 municipalities in 11 semi- of the community for planning sustainable tourism arid states of Brazil. Local players and talents with and structuring a visitors’ center in the kilombo has strong community participation and children and helped to fulfill its potential for tourism; adolescents are mobilized and coordinated so that mayors, governors and the federal government can Learning professional skills: mid-term actions work to achieve the goals and commitments within give priority to training young people for the labor mar- the sphere of the National Compact: A World for ket through professional training and building a life the Child and Adolescent in Semi-Arid Brazil; project, considering their concerns, dreams, vocations Educational Radio Soap Opera Broadcast to and talents. This is the case in the following projects: Protect the Rights of Children and Adolescents: Human Capacity Building, Planting Forests and the project is in Pará, North Brazil, and trains social Guaranteeing a Future: with organic production agents in the subject of addressing violence against and sale of farm produce, around 50 households children and adolescents, providing content for in Alagoas benefit from the project through actions the educational radio soap operas. Through the 30 HUMAN RIGHTS | PRINCIPLE 1