Today, Petrobras’ hollow ESG promises. What lies beneath Brazil’s spectacular quarterly growth. And a make-or-break trial for Bolsonaro.
Petrobras goes green. Or does it?
Brazilian state-controlled oil and gas giant Petrobras presented its investment plan for the 2021-2025 period, including an apparently bold pledge to reduce greenhouse gas emissions by 25 percent as of 2030. While the announcement suggests the company might be coming to terms with the zeitgeist and adopting ESG (environment, social, governance) principles, a closer look indicates that Petrobras could simply be trying to greenwash its brand.
Behind the curtain. Petrobras’ emission reduction goals are based on 2015 data, when it was responsible for 78 million tons of carbon dioxide equivalent. Last year, however, emissions were already down 24.3 percent.
- Moreover, Petrobras has set aside only USD 1 billion in capital expenditures (CapEx) to fund its green drive — out of an available USD 55 billion. Meanwhile, 84 percent of its CapEx provisions will go to oil and gas exploration and production.
- For comparison’s sake, Italian oil and gas firm Eni aims to cut absolute emissions by 80 percent within the next 30 years, while BP aims to be net-zero on the carbon in its...