IBP Hosts Debate on Human Rights in the Oil and Gas Supply Chain
The Brazilian Petroleum and Gas Institute (IBP) held the Compliance Talks event on Wednesday (July 16) in Rio de Janeiro, bringing together experts and industry representatives to discuss the importance of human rights and social responsibility in the oil and gas (O&G) supply chain. The event highlighted the industry’s commitment to promoting a social transformation agenda that goes beyond mere compliance with legal obligations.
Roberto Ardenghy, IBP President, emphasized the importance of the topic for the O&G industry during the opening remarks: “We have an obligation to be agents of societal transformation. It is not enough to just pay taxes and meet legal obligations; we must actively contribute to transforming society and the social fabric. We are committed to human rights, diversity, and inclusion agendas, which are expected from an industry of such significance.”
In the first panel of Compliance Talks, “Present and Future of Human Rights in Brazil – Normative and Regulatory Issues”, moderator Rafaela Carvalho, Senior Analyst in the UN Global Compact’s anti-corruption area, highlighted that, according to the UN Universal Declaration of Human Rights, “human rights guarantee and protect the dignity of all human beings worldwide.” Marília Lofrano, specialist at Mattos Filho law firm, explained that although human rights obligations under international public law primarily bind states, “globalization and the growing transnational scope of business relationships have driven the need for companies to voluntarily develop this agenda.”
Juliana Paixão, Social Security Counselor, added that incorporating human rights into business logic is essential for corporate sustainability and reputation: “It is important to have a business risk matrix to identify threats, especially regarding vulnerable populations, and to ensure clear channels for access to justice.”
The second panel addressed “The Role of the O&G Supply Chain in Advancing Human Rights.” Daniel Almeida, partner at Deloitte, stressed companies’ responsibility toward the lives of their workers and those impacted by their operations. He presented a methodology to assess the criticality of the supply base, considering industry, geographic location, supplier history, and type of labor involved.
Representing the largest company in the sector in Brazil, Renata Gravina, Due Diligence Manager at Petrobras, shared the company’s experience, which has incorporated human rights into its integrity due diligence process since October 2023. Gravina also provided an overview of how the issue is being developed with suppliers: “Of the companies that declare public commitments to human rights, only 90% have internal policies and procedures, and only 70% conduct risk assessments. It is necessary to raise awareness, literacy, and education on human rights within the supply chain through monthly meetings, roadshows, training sessions, and webinars.”
Natália Fonseca, Compliance Manager at OceanPact, reinforced the importance of risk mapping and internal analysis to identify remote suppliers and determine the need for deeper investigations: “Companies have the role of developing their suppliers. Penalization is not the best solution, and leadership from senior management is crucial to the purpose of corporate social responsibility.”
Compliance Talks reinforces IBP and its members’ engagement in promoting more responsible and transparent business practices, contributing to a fairer and more equitable society.
The event was sponsored by Petrobras and the Federal Government, whose support and partnership are acknowledged in advancing this highly relevant agenda for the sector. To watch a recap of the event, click here.
