Petrobras President Reaffirms That Integrity Is An Absolutely Non-Negotiable Value At The Oil Company

Castello Branco and Other Authorities Participate in an Event Showcasing Advances in Governance and Compliance at Petrobras

Petrobras held the opening of the event “Dialogues for Integrity” yesterday (11/30). During the meeting, the company highlighted the advances it has made in combating fraud and corruption and reaffirmed the importance of ethics, integrity, and transparency in conducting its business. Petrobras’ Billion-Dollar Divestment Could Stagnate Oil Production Until 2025

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This is the 7th consecutive year that Petrobras promotes the initiative, always close to the International Anti-Corruption Day, celebrated on December 9 by the United Nations (UN).

“Since I took over the presidency of Petrobras, I declared zero tolerance for corruption. It is one of the worst evils that can affect societies. It discourages economic growth, innovation, and the pursuit of productivity gains and increases social inequality by transferring income from society to a small group of criminals. It affects the poorest, those who need it most, as it takes away resources from health, education, and public safety. Petrobras has learned a lot from what it suffered in recent years. Today, integrity is an absolutely non-negotiable value in the company, it is the only way we can conduct our business. The evolution of the company’s Integrity system has provided risk mitigation, greater security in the decision-making process, regaining its image, and increased competitiveness in its business. Petrobras will continue to contribute to a society that is increasingly ethical, integral, and transparent,” highlighted Castello Branco.

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In addition to the president of Petrobras, the ceremony was attended by the Minister of the Supreme Federal Court and current President of the Superior Electoral Court, Luís Roberto Barroso, and other authorities. During the event, Barroso emphasized that corruption in Brazil has historical roots; however, according to the minister, it is already possible to perceive changes in Brazilian society.

“The fight against corruption and in favor of integrity is not a fight that is won by knockout. It is a long fight that is won by points. It is work for more than one generation. The good news is that it has already begun. At some point, Brazilian society stopped accepting the unacceptable. This train has already left the station. It is underway, not at the desired speed, but in the right direction. I already see the changes. New generations have higher ethical standards. The private sector has already changed, as demonstrated by this meeting, which has been repeated for several years. Almost all major state-run or private companies have a compliance department. There are already major global firms specializing in the subject. I congratulate Petrobras for the importance it has given to integrity and the recovery of the company’s image and efficiency,” analyzed the minister.

During the event, advances and key figures for the Governance and Compliance area in 2020 were presented. More than R$ 510 million were recovered by the company as a result of collaboration agreements, leniency, and repatriations in 2020 alone, totaling over R$ 4.5 billion since 2015. Petrobras conducted Integrity Due Diligence (DDI) on 4.1 thousand companies. The DDI evaluates the mechanisms for combating fraud and corruption of the companies with which Petrobras does business. Due to the strengthening of good governance and integrity practices in its processes, Petrobras became eligible to receive investments from Norway’s largest pension fund (KLP) in 2020 and also returned to the Partnering Against Corruption Initiative (PACI), an initiative by the World Economic Forum (WEF) for combating corruption and promoting transparency.

More than 49,000 employees were trained on integrity-related matters in 2020 alone. Courses were conducted with top management and employees in general on topics such as the Code of Ethical Conduct, compliance competition, among other subjects. In addition to the internal audience, Petrobras provided training for its counterparts, such as suppliers and partners. The difficulties arising from the Covid-19 pandemic posed an additional challenge for training throughout the year, with a good portion of the courses conducted remotely.

“Petrobras does not want to sweep dirt under the rug but to extract lessons learned. We learn from past lessons to improve our future. After implementing a compliance system with the best tools a company should have, we are seeking to enhance the dissemination of the culture of integrity at Petrobras. To value correct conduct, to acknowledge employees with integrity attitudes, including in terms of meritocracy, and to prioritize prevention so that illicit acts do not occur within the company,” said Marcelo Zenkner, Director of Governance and Compliance at Petrobras.

The launch of the new Code of Ethical Conduct at Petrobras and Guide to Ethical Conduct for Suppliers was also mentioned by Zenkner. The documents clearly and objectively outline what Petrobras expects in terms of ethical conduct from its employees and suppliers. The Supplier Guide further reinforces the promotion of dignified and safe working conditions and the fight against child and slave labor, as well as promoting diversity, gender and racial equality, and the inclusion of people with disabilities, in line with the principles of Environmental, Social, and Governance (ESG). Another new aspect mentioned was the creation of an exclusive category for highlights in integrity practices in the Petrobras Best Suppliers Award, which already recognizes contracted companies in aspects such as timeliness, quality, and management.

Sanctions Based on the Corporate Anti-Corruption Law

Petrobras also applied R$ 7 million in fines against suppliers in recent years due to Administrative Disciplinary Processes (PARs) based on the Corporate Anti-Corruption Law (12.846/2013). These sanctions are applied by Petrobras’s Integrity Committee, an independent body formed by compliance specialists, including external lawyers. This month, Petrobras even held a series of webinars on Sanctioning Administrative Systems of Private Entities in conjunction with the World Bank (WB), Inter-American Development Bank (IDB), and the Federal Comptroller General (CGU). It was the first event of its kind offered by the WB and IDB in Latin America aimed at training representatives of public administration, both direct and indirect.