Welcome

Climate change is among the greatest global challenges of our time. The consequences are
varied and difficult to assess in their entirety, but they represent a threat to food security and
development in many countries around the world by affecting, for example, agricultural
systems and biodiversity.

In this Module 1, you will learn the main concepts related to climate change and understand
how our activities at Petrobras relate to this context.

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Introduction - you are here!

Global context of climate change

The greenhouse effect phenomenon

Quantification and classification of GHG emissions

Closure

The global increase in temperatures caused by the accumulation of greenhouse gases (GHG),
mainly CO2, although predicted since the late 19th century by scientists such as Arrhenius,
could only be scientifically measured, with a high level of confidence, at the end of the 20th
century.

In 1988, the Intergovernmental Panel on Climate Change (IPCC) was founded, an international
scientific organization, composed of 195 member countries (including Brazil) to regularly
assess the situation of climate change.

In the IPCC, hundreds of authors evaluate the most current research and prepare reports
consolidating the conclusions about the science involved in climate change, its implications
and possible future risks, as well as proposals for society's adaptation to the changes and
actions to mitigate the impacts.

There have already been 6 evaluation cycles, the last one in 2021

According to the IPCC "the warming of the climate system is unequivocal, and since the 1950s
many of the observed changes are unprecedented in their time scales".

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The IPCC recorded the conclusion of a group of 1300 independent experts from around the
world that there is a more than 95% probability that human activities are the cause of global
warming.

Since the pre-industrial era, the average temperature of the planet has already increased by
approximately 1.1°C.

However, in order to avoid the greatest damage caused by climate change, the scientific
community alerts that the maximum increase limit should be 1.5ºC.

Consequences of climate change

Climate change does not affect all regions equally. Note in the figure that, in some high
latitude regions, the temperature variation already exceeds 4.0ºC.

This expanded increase in temperatures at the poles deregulates the climate of the entire
planet, changing weather patterns of seasons, rainfall, exacerbating and increasing the
frequency of extreme events such as hurricanes, floods, cold or heat waves.

Some of the impacts of these events are:

Gradual transformation of native vegetation, with some regions becoming very dry, hot, and
overly susceptible to fire (e.g., parts of California, Australia, and sub-Saharan Africa).

Risk of constant flooding or complete submergence of certain regions due to rising sea levels.

Loss of biodiversity through the extinction of many species that will not be able to adapt to
rapid changes in their habitat.

In recent decades we have noticed that extreme events are occurring much more frequently
and affecting an increasing number of regions.

Look at the graph and see how the number of natural disasters has increased since 1980.

This increase in the number of extreme events and natural disasters has led some scientists to
conclude that we have already reached a critical (and perhaps irreversible) level of global
temperature increase.

Agriculture and food production

Climate directly affects natural and agricultural ecosystems. Thus, agriculture and food
production are the economic activities most impacted by climate change. The occurrence of
extreme events decreases the productivity of the agricultural sector.

Unforeseen events such as prolonged droughts, frosts, unseasonable rainfall, floods and
hurricanes make it difficult to plan plantings, damage crops, and deteriorate the quality of
pastures.

As a result, food availability is reduced and prices rise, threatening the food security of part of
the population.

The agricultural sector, however, is not the only one affected by climate change. The entire
global infrastructure is likely to be affected. Extreme weather events have great potential to
destabilize product distribution logistics around the world and burden public systems for
repairing damage from catastrophic events.

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Climate Migration

The increased frequency and intensity of natural disasters and rising sea levels pose great risk
to populations. It is estimated that 216 million people may be forced to leave their homes or
cities by 2050. This phenomenon has already begun and is being called climate migration.

Climate change may cause traditional livelihoods to collapse, making subsistence agriculture
impossible in many places. Desertification and extreme droughts make land infertile, forcing
migration. Flooding, caused by unbalanced rainfall or rising sea levels, also forces people to
leave their home regions.

Resource conflicts

Overall, unsustainable climate conditions will intensify conflicts over already scarce resources
and increase the vulnerability of fragile populations.

Entire communities will need to look elsewhere to produce food and access water.

Increase of diseases

Another important issue is the increase in diseases that can be brought on by extreme events
such as floods or heat waves (e.g. dehydration, diarrhea, infectious diseases from
contaminated water) and by rising average temperatures that create conditions conducive to
the spread of vector-borne diseases such as dengue fever and malaria.

The global response to the climate issue

It can be said that there is already significant consensus about the existence, causes, and
severity of climate change. However, acting to solve the issue is proving to be a very complex
challenge.

Climate change is a problem on a global scale. Greenhouse gases have impacts worldwide,
regardless of the region where they are emitted.

It is imperative, therefore, that all countries seek to coordinate their understandings and
actions on the subject, seeking to limit greenhouse gas emissions. However, the actions
necessary for this objective may give rise to points of divergence between countries,
concerned with the impacts on the competitiveness of their products and services.

The main international body to politically address the climate issue is the UNFCCC, the United
Nations Framework Convention on Climate Change.

The main objective of the UNFCCC is to seek to stabilize the concentration of greenhouse
gases in the atmosphere at a level that prevents human action from dangerously interfering
with the climate system

The UNFCCC officially came into being in 1992, during the Earth Summit, held in Rio de Janeiro.
This event, widely known as Rio92, was a milestone for the international debate on
environmental agendas.

The participants of the UNFCCC meet annually since 1995, in a meeting called "Conference of
Parties" and called COP (Conference of Parts).

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Among the COPs that have received the most attention are COP3 in 1997, which established
the Kyoto protocol, and COP21 in 2015, which adopted the Paris Agreement.

The Paris Agreement

The Paris Agreement was adopted by unanimous decision of the members of the UNFCCC on
December 12, 2015.

In this Agreement, the world's leaders committed to keep the global temperature increase this
century below 2°C and to undertake efforts to limit the temperature increase by 1.5°C with
respect to pre-industrial levels.

But what is needed to fulfill this agreement?

For the increase to be limited to 2°C, a zero net balance of GHG emissions would need to be
achieved somewhere in the second half of our century.

A zero net balance is achieved when the volume of emissions is equivalent to the volume
removed from the atmosphere (via reforestation or geological sequestration of GHGs, for
example).

And in order to limit the global temperature increase to 1.5°C, it is estimated that a net zero
balance of emissions must be achieved between 2030 and 2050.

The Paris Agreement is historic precisely because it provides the tools necessary for all
countries to jointly contribute to this goal.

According to the Paris Agreement mechanism, all member countries submit their NDCs, which
stands for Nationally Determined Contribution.

Through the NDC, each country informs which mitigation targets and adaptation actions it
intends to implement, as well as the means for their effective implementation.

Unlike most previous international environmental treaties, the Paris Agreement does not
impose targets on countries.

Because they were voluntarily defined, compliance with the NDCs does not guarantee that the
objectives of the Paris Agreement will be fully achieved.

Therefore, the NDCs must be reviewed every 5 years, always for more challenging targets, in
order to accelerate the path of emissions reduction.

Within this context, many countries have voluntarily committed to leverage actions to achieve
the goal of zero net greenhouse gas emissions (Net Zero).

See in the figure some projections for global emissions under different scenarios and the
resulting temperature increase.

In the use of land and forestry change sector:

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Reduce illegal deforestation, starting in 2022, by 15%
per year through 2024, 40% in 2025 and 2026, and
50% in 2027, reaching the goal of zero illegal
deforestation by 2028.
Restore and reforest 18 million hectares of forests for
multiple uses by 2030.

In the energy sector:

-
Achieve an estimated share between 45% and 50% of
renewable energy in the energy mix by 2030 and
continue to expand.
Increase the share of sustainable biofuels (including the
use of biomass in energy cogeneration) in the Brazilian
energy matrix.
Promote efficiency gains in the energy and electricity
sector.
Encourage the use of waste energy, including solid
urban waste.

In the agricultural sector:

-
Implement the Sector Plan for Adaptation and Climate
Change and Low Carbon Emission in Agriculture and
Livestock with a view to Sustainable Development
(ABC+ Plan).

In the industrial process and product use sector:

-

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Promote new patterns of industrial processes, including
the development, production and commercialization of
new, less GHG-intensive technologies that contribute to
the strengthening of low-carbon industrial production.

In the industrial process and product use sector:

-
Promote new patterns of industrial processes, including
the development, production and commercialization of
new, less GHG-intensive technologies that contribute to
the strengthening of low-carbon industrial production.

Also during COP26, Brazil announced its adhesion to the

Global Commitment to Methane Reduction.

The countries that joined the Commitment agree to

implement voluntary actions in order to contribute to
the collective effort to reduce global methane emissions
by at least 30% from 2020 levels by 2030.

What is the greenhouse effect and how does it work?

If the greenhouse effect is natural and necessary, why

are we concerned about it?

What worries the world scientific community is not the

greenhouse effect itself, but its intensification.

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 Various human activities such as deforestation,
agricultural and industrial activities, including the
burning of fossil fuels, release greenhouse gases and
the increased concentration of these gases in the
atmosphere means that more of the Sun's energy is
trapped in the atmosphere. This causes an abnormal
increase in the planet's temperature, generating the
climate changes already mentioned.

As you can see in the graph below, since 1950 the

increase in the concentration of carbon dioxide (CO2) in
the atmosphere has been growing exponentially, in line
with the increase in population and human activities.

Containing global warming depends on limiting

greenhouse gas emissions into the atmosphere as
quickly as possible. If current emission rates are not
reduced, the critical temperature increase limit of 1.5°C
could be reached in less than 10 years!

Greenhouse gases (GHG) and emission sources

Several substances act as greenhouse gases. The main
one is water vapor.
Water vapor is responsible for most of the natural
warming effect in the atmosphere, but is left out of
climate change management because its
concentrations in the atmosphere are not directly
affected by human action.

Today we understand that various human activities

emit greenhouse gases and, as a consequence, impact

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the global climate system. Which of the gases below is
not a greenhouse gas?

The industrial sector's greenhouse gas emissions can

be divided into Scope 1, 2 and 3. In the case of the Oil
and Gas Industry, where do we find the largest volume
of greenhouse gas emissions?

All Electric Concept

-
The application of the All Electric concept consists in
the electrification of as much equipment and
applications as possible in new oil and gas production
platforms. All the power is generated at a single point,
in a more optimized way, distributing the electrical
energy to the equipment.

This configuration is more efficient than decentralized

generation, allowing the use of less fuel, reducing GHG
emissions by up to 20% per barrel of oil produced.

HISEP® (High Pressure Separation) Technology

-
HISEP (High Pressure Separation) is a technology
developed and patented by Petrobras, which is
currently being tested.

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With HISEP, the CO2-rich gas coming out of the
reservoir is separated and part of it is reinjected from a
system located on the seabed, avoiding this volume
having to be processed. This allows the unit to have a
smaller and simpler gas processing plant, as part of the
gas will be removed beforehand.

The HISEP technology has positive effects on the

intensity of the unit's GHG emissions because it reduces
the emissions derived from gas processing and allows
for increased production.

RefTOP Program
-
The RefTOP Program is a set of initiatives that aims to
increase the efficiency and operational performance of
our refineries, with investments of approximately $300
million by 2025.

Since its launch, the RefTOP Program has promoted a

detailed analysis of the Refining assets to identify
opportunities for value generation in the Energy
Performance and Climate dimension. In this sense,
RefTOP foresees initiatives to increase the refineries'

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energy performance by, for example, reducing losses,
recovering energy currents and optimizing the
thermoelectric system, resulting in better use of inputs
such as natural gas, electricity and steam in the
operations themselves.

By 2021, we implemented 8 new projects and a series

of operational initiatives, which together led to a 2.4%
reduction in the Energy Intensity at the Program's
refineries. This result was responsible for avoiding the
emission of about 242,000 tons of CO2 equivalent.

The new Energy Performance and Climate projects

planned under RefTOP are focused on reducing the
consumption of primary sources of energy in the
refinery (natural gas, electricity and steam) and on
optimizing the generation and distribution of these
energies. Among other initiatives, energy integration
between processes, the modernization of
thermoelectric plants installed at refineries and the
installation of more efficient machinery are foreseen.

BioRefining 2030 Program

-
The BioRefining 2030 Program, launched in 2020,
includes projects for the production of a new generation

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of fuels, more modern and sustainable, such as
renewable diesel and aviation biokerosene (BioQAV).

Renewable diesel is a biofuel chemically similar to

mineral diesel (derived from petroleum), but produced
from renewable raw materials. As such, it can be used
neat, with no need to adapt the engines, or mixed in
any proportion with mineral diesel.

The technology for producing renewable diesel via the

co-processing of vegetable oils was patented by
Petrobras in 2006, and became known as the HBIO
Process.

We believe that the co-processing of renewable raw

materials in existing refineries is the fastest and
cheapest way to offer fuels with renewable content to
the market, starting the path towards the
decarbonization of the company's products.

Currently, the adaptations required to carry out the co-

processing of refined soybean oil and diesel oil at our
HDT (Hydrotreatment) unit at REPAR have already been

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completed, making it possible to produce diesel oil with
5% renewable content. In our vision for the future,
should renewable diesel be recognized in the mandates
for mandatory addition to fossil diesel fuel, we plan to
carry out the co-processing of vegetable oils at REPLAN
and RPBC as well.

Other technologies for the production of renewable

diesel and BioQAV are also under development at the
company, with the future goal of setting up units
dedicated to the production of biofuels. These initiatives
will contribute to the diversification of our product
portfolio, reducing our Scope 3 emissions intensity,
while also contributing to the decarbonization of the
road and air transport segments.

Gas+ Program
-
The Gas+ Program, launched in 2021, contemplates
strategic projects for natural gas processing assets and
thermoelectric plants, whose initiatives consist of the
implementation of investment projects for the
modernization of the process installations. The Program
aims to increase operational availability and energy
efficiency, reducing the use of water resources in the
country.

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On the energy efficiency front, we highlight the projects
for improvements in the gas turbines of the Termobahia
(BA) and Termorio (RJ) thermoelectric plants. Besides
bringing gains such as increased power, greater
efficiency and increased campaign time between
maintenance, the combined projects will promote a
reduction in GHG emissions in the order of 16 thousand
tCO2, in the PE 2022-2026 horizon.

At UTGCA (SP), the Gas+ Program will implement an

initiative to redirect and recover part of the gas that
would be flared, allowing this gas to be recovered in
LPG, C5+ or sale gas. The reduction of emissions
resulting from this reuse totals around 5.8 thousand
tCO2e annually.

Eco Type Vessels

-
In the Maritime Transportation segment, our ship
contracting process prioritizes vessels with better
consumption performance and, consequently, lower
greenhouse gas emissions.

In 2020, we hired two Very Large Crude Carrier (VLCC)

class Eco Type vessels, with capacity to transport about
2 million barrels of oil. From January to August 2021,
they already presented an average fuel consumption

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reduction of 24% (tons per mile), when compared to
conventional vessels of the same class.

Also in 2020, we received another four new Suezmax

DP-2 Eco Type vessels, built for relief operations in deep
and ultra-deep waters off the Brazilian coast. In a little
more than a year of contracting, the expected
performance was proven, with average fuel
consumption 20% lower than that of other vessels of
the same size in the fleet, representing a reduction of
about 31 thousand tCO2 and of atmospheric emissions
in 2021 alone. In 2022, we will receive three more ships
of this same class.

We seek to advance in the hiring of Eco Type vessels in

all classes, in addition to promoting initiatives to reduce
emissions by optimizing routes and speed control of
vessels.

Nature-Based Solutions and Carbon Removal

-
You have already learned that carbon removal solutions
can be natural or technological.

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Natural removals, also known as "nature-based climate
solutions" and by the acronym NCS (Natural Climate
Solutions), involve strong social, governmental, and
intersectoral collaboration.

At Petrobras, we believe that NCCs should be seen as

additional contributions to the efforts to intrinsically
reduce our GHG emissions. As such, we believe that
solutions for carbon removal and sequestration by
natural processes are not a substitute for our
commitment to supply energy to less carbon-intensive
societies.

Our short and medium term targets are relative to the

actual performance of our processes and products and
do not foresee the use of emissions offsets to achieve
them. However, our neutrality ambition does consider
the possibility of using carbon credits to offset marginal
emissions.

To date, we have never used carbon credits as an

opportunity to achieve our targets and commitments,
but we believe that this tool may be important in the
future, considering our challenges. We have therefore

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considered including high quality NSC credits as an
offset opportunity in our Carbon Neutral Program,
following an order of merit that prioritizes all feasible
direct GHG reductions before eventual generation or
purchase of carbon credits for offsetting purposes.

Living Forest Initiative

-
In 2021, we announced an increase of about R$50
million in investments in projects aimed at forest
restoration of native species in Brazilian biomes, which
contribute to carbon sequestration and fixation and to
avoid greenhouse gas emissions.

The investment, foreseen for the next five years, is part

of the Floresta Viva initiative, launched by the BNDES,
which will operate under the principle of combining
resources from the BNDES with resources from other
companies.

The partnership between Petrobras and BNDES will total

an investment of R$ 100 million from both institutions,
over five years, to finance reforestation projects, by
means of public selection and shared management.

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Exactly! The oil and gas industry delivers more than
50% of the world's energy demand. Our role is to
continue providing affordable, reliable and versatile
energy, but in a way that is aligned with global climate
goals.

Our sustainability commitments were reiterated in our

Strategic Plan 2022-2026 and are in line with our
decarbonization path. Our Strategic Plan reinforced our
initiatives to produce, through the Biorefining 2030
Program, a new generation of fuels, such as renewable
diesel and aviation biokerosene (BioQAv). These are
alternatives for reducing operational emissions if
consumed in our operations, but are not one of our
sustainability commitments.
The IAGEE consolidates the indicators for emissions
intensity in the E&P (IGEE-E&P) and Refining (IGEE-
Refining) segments, which are also part of our
sustainability commitments. The IAGEE result impacts
the variable remuneration of all employees,
representing between 15% (for the CEO) and 5% (for
employees without a bonus function) of the bonus.

Our vision is to be the best energy company in value

generation, with a focus on oil and gas, sustainability,
safety, and respect for people and the environment.
Our initiatives seek to build a decarbonization trajectory
in a timeframe compatible with the Paris Agreement,
contributing with our products to energy security. We
seek to make energy more accessible by applying skills

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and technologies to develop more efficient processes
and products for a world in transition.

Translated with www.DeepL.com/Translator (free

version)

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