Petrobras is a Brazilian state-owned oil and gas company that operates across six business segments: exploration and production, downstream, petrochemicals, distribution, gas & power, and biofuels. It has operations in 27 countries. In 2007, Petrobras announced a strategic plan to become one of the top five largest integrated energy companies in the world by 2020. The company's market value reached $242.7 billion USD in 2007, an increase of 125.2% from the previous year, as investments and production grew substantially. Petrobras is publicly traded but remains majority state-owned, and uses a corporate governance structure including a board of directors, executive board, and oversight committees.

1. SOCIAL AND
ENVIRONMENTAL REPORT

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. 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. 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. 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. Message
from the CEO
2 MESSAGE FROM THE CEO

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. 4 PETROBRAS

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. 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. 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. 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. 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. 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. 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. 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. 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. Social and
Environmental
Responsibility

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. 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. 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. 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. 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. 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. 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- balancosocial@petrobras.com.br 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

27. 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.

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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
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34. 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