Ultrapar Participações is a publicly listed semi integrated oil and gas company headquartered in Brazil. In 2020, it had USD 15.64 billion in revenue and a reported 16,024 employees*. Ultrapar specialises in gas distribution and petrochemical production. The company approaches its low-carbon transition at the level of each individual business and has no consistent group-wide approach.
Ultrapar has scope 1 and 2 targets at the level of individual businesses, but the company has not set any group-wide targets. Only Ultragaz, Ultrapar’s gas logistics business, has a target with a sufficient time frame to be assessed for alignment with the company’s 1.5°C pathway.
Ultragaz is targeting a 6% reduction in scope 1 and 2 emissions between 2018 and 2025. This target achieves less than 20% of the reductions required by Ultrapar’s 1.5°C pathway. Given that Ultragaz accounts for only 36% of Ultrapar’s scope 1 and 2 emissions, its target was scaled down in the assessment based on the proportion of emissions it accounts for. Ultrapar has no scope 3 emissions reduction targets for its individual businesses or the entire group.
Ultrapar does not have a consistent group-wide approach to managing climate change issues. Instead, it manages these issues at the individual business level. Its businesses Ultracargo and Ultragaz have implemented oversight of climate issues at the senior management level; however, details on Ipiranga’s climate change management were not found. Successful change within companies, such as the transition to a low-carbon economy, requires strategic oversight and buy-in from the highest levels of decision-making within the company. Ultrapar therefore needs to ensure it is managing climate-related risks and opportunities at the group level.
Ultrapar manages its supplier engagement at the level of individual businesses. Of Ultrapar’s three relevant businesses assessed in this benchmark, Ultragaz’s supplier engagement is the strongest. Ultragaz uses the CDP Supply Chain Questionnaire and its own survey to collect scope 3 emissions data on 99% of its suppliers. Ipiranga and Ultracargo’s supplier engagements have a wider environmental, social and governance (ESG) focus and do not specifically focus on emissions reductions.
Ultrapar should apply Ultragaz’s level of supplier engagement to the rest of its businesses and use suppliers’ emissions performance in the selection process to achieve decarbonisation within the group’s entire supply chain.
Ultrapar receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. With no improvements in its scope 1 and 2 and scope 1, 2 and 3 emission intensities between 2014 and 2019, and no group-wide targets in place to reverse this trend going forward, Ultrapar will not be able to deliver the rate of change required by its 1.5°C pathway. To add to this, Ultrapar remains reliant on fossil fuels for its revenues and has no plans in place, for any of its businesses, to transition away from oil and gas towards low-carbon activities.
Ultrapar has not set any group-wide low-carbon commitments. Its businesses Ipiranga and Ultragaz have set targets to reduce scope 1 and 2 emissions by 5% by 2023 and by 6% by 2025 respectively, compared to 2018.
Ultrapar does not have a group-level low-carbon transition plan. Some of its businesses are making efficiency changes, such as its business Ipiranga using renewable energy for power at some service stations. However, none of the businesses demonstrate plans to move away from fossil fuels.
Ultrapar’s main activities are still related to fossil fuels, such as gas distribution, and gas storage and transportation services alongside its petrochemicals business. Ultrapar has one low-carbon business activity: electric vehicle charging, which it undertakes through its business Ipiranga.
Ultrapar’s total sales of liquefied petroleum gas (LPG) declined by nearly 8% between 2014 and 2019. However, the emissions intensity of Ultrapar’s LPG has not significantly changed , which means the company’s scope 1, 2 and 3 emissions intensity has not improved.
Ultrapar’s approach to the low-carbon transition is not consistent. Taking action at the level of individual businesses rather than the group level limits the company from delivering the drastic scale of change required by its 1.5°C pathway in a sufficiently ambitious and consistent manner.