The oil and gas sector is one of the pillars of the Brazilian economy — responsible for 42.5% of the country’s internal energy supply and about 10% of the industrial GDP. However, it is also one of the largest emitters of greenhouse gases (GHG) in Brazil. The climate transition of the oil and gas sector is therefore essential for the country to advance toward a low-carbon economy.
Developed by the Climate Finance Hub Brazil (CFH Brazil), the new Oil and Gas Sector Report presents the most comprehensive diagnosis ever produced on the sector’s climate-transition maturity.
Analysis based on the ACT methodology
The assessment was conducted using the international ACT (Accelerate Climate Transition) methodology, adapted to the national context. It considers companies’ climate targets, investments, performance, and governance. The methodology measures how aligned companies are with a low-carbon economy, analyzing both historical data and future planning — and evaluating the consistency between commitments and real actions.
Companies assessed and results
Fifteen companies representing nearly 90% of national production were evaluated: Bahiagás, Copa Energia, Comgás, Compagás, Enauta, Grupo Potencial, Ipiranga, Petrobras, PetroRecôncavo, Prio, Naturgy, Necta, Sulgás, Ultragaz, and Vibra.
The sector received an average score of 2.7 (D-) on a scale from 0 to 20 (“A+”), indicating low maturity and a negative trend. No Brazilian company reached the “A” or “B” classifications. The main gaps include the absence of robust targets, integrated transition plans, and transparency regarding R&D investments and low-carbon technologies.
Decarbonization and sector challenges
According to the study, “the low scores obtained by companies in the sector reflect the absence of robust and comprehensive climate targets, the lack of structured transition plans integrated into corporate strategy, the predominance of isolated initiatives focused on operational efficiency, and the limited diversification of portfolios toward low-carbon alternatives. Current initiatives have limited scope and are largely concentrated on operational efficiency.”
The climate transition of the oil and gas sector therefore requires greater investment in innovation, portfolio diversification, and solid climate governance to address growing risks and meet the goals of the Paris Agreement.
Why download this material
The Sector Report – Assessment of Climate-Transition Maturity of Oil and Gas Companies brings together unprecedented data and internationally comparable analyses. It is essential reading for:• Companies seeking to identify gaps and improvement opportunities
• Investors and financial institutions assessing transition risks
• Public managers and researchers looking for technical foundations for policies and studies