Brazilian state-controlled Petrobras is the latest national oil company to commit to becoming carbon neutral, in line with the 12-member global oil and gas climate initiative (OGCI), of which Petrobras is a signatory.
The company’s carbon-neutral target applies to its scopes 1 and 2 operations, which include greenhouse gas (GHG) emissions from company-owned and controlled operations as well as indirect emissions from energy purchases from third-party suppliers. Petrobras also pledged to work with its partners in non-operated areas to help them reduce emissions. The goal will be met “in a timeframe compatible with that established by the Paris Agreement,” Petrobras said today.
The company said it boosted carbon efficiency in exploration and production by 47pc over the past 11 years. In its 2020 sustainability report, released in April, the company said it is targeting a 25pc reduction in total emissions by 2030.
Petrobras committed to investing $1bn to reduce its carbon footprint during the 2021-25 period, according to its most recent five-year plan, issued in November.
The company’s announcement comes amid growing pressure on the industry to step up verifiable commitments ahead of the COP26 climate conference in Glasgow, Scotland, in November.
Petrobras’ public-private ownership structure puts the company under more scrutiny than many other NOCs. Part of its shares are trading on the New York stock exchange. By the end of 2021, the US Securities and Exchange Commission (SEC) is aiming to vote on a proposal to require publicly traded companies to disclose their climate risks, including potentially all of their direct and indirect greenhouse gas emissions.
Elsewhere in Latin America, Colombia’s state-controlled Ecopetrol unveiled in March its pledge to reach net-zero carbon emissions by 2050.