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The Company Of Responsible Energies

Our ambition: to be the company of responsible energies

Energy is at the heart of one of the major challenges of the 21st century: to preserve the planet threatened by climate change while enabling the majority of humanity to escape from poverty. In this sense, energy is inseparable from the major global challenges of sustainable development.

The ambition of Total that proposes to its shareholders in 2021 to become TotalEnergies, is to be the company of responsible energies. Its raison d’être is to supply to as many people as possible a more affordable, more available and cleaner energy. As a supporting component of society’s evolutions, energy is a fundamental resource for economic, social and human development, which currently faces a twofold challenge: satisfying the energy needs of an ever-growing world population while reducing global warming. The Group’s raison d’être is rooted in that challenge. TotalEnergies’ intention in becoming a broad energy company is to help meet that challenge in a responsible way.

Priority axes and action plans towards carbon neutrality

TotalEnergies supports the objectives of the Paris Agreement, which calls to reduce greenhouse gas emissions in the context of sustainable development and eradicating poverty, and its goal of limiting the average rise in planetary temperatures to well below 2°C from pre-industrial levels.

TotalEnergies also supports the objective set out in the Paris Agreement of achieving global carbon neutrality – i.e., net zero emissions, which is the balance between greenhouse gas emissions and anthropogenic removals in the form of greenhouse gas sinks and reservoirs, such as forests and carbon capture and storage facilities.

In order to reach the goals in the Paris Agreement, global energy systems will need to be transformed. The dual challenge of providing “more energy for all and fewer carbon emissions” is a challenge for society as a whole, with governments, investors, businesses and consumers all having an important role to play.

The Group has set an ambition of reaching carbon neutrality (net zero emissions) by 2050, from the production to the use of the energy products sold to its customers (Scopes 1, 2, 3), together with society.

To achieve carbon neutrality, it is essential for governments to adopt policies favoring this carbon neutrality, in accordance with the U.N.’s SDG 13. TotalEnergies actively supports policies favoring carbon neutrality, including carbon pricing, and mobilizes its resources not only to achieve its own ambitions but also to support countries and its customers in achieving carbon neutrality as well. TotalEnergies is committed to working alongside its customers to provide for the decarbonization of energy consumption offering an energy mix with an increasingly lower carbon intensity.

To accompany this development and achieve its carbon neutrality ambition (net zero emissions) in 2050 or sooner, for all its worldwide activities, the Group acts based on three main axes and commits to targets for 2030 for each of these axes.

The first axis is to achieve, in 2050 or sooner, carbon neutrality (net zero emissions) for TotalEnergies’ worldwide operated activities, with regards to direct greenhouse gas emissions from its own operated facilities (Scopes 1 & 2). The Group’s companies are responsible for them. TotalEnergies plans to lower its direct emissions by improving energy efficiency, eliminating routine flaring, electrifying its processes and reducing methane emissions. To address its residual emissions, TotalEnergies plans to develop carbon sinks, as nature-based solutions, by investing in forests as well as carbon capture and storage.

On the road toward carbon neutrality, TotalEnergies has set interim targets of reducing GHG emissions (Scopes 1 & 2) of the operated oil & gas facilities of the Group from 46 Mt CO2e in 2015 to less than 40 Mt CO2e by 2025 i.e., a 15% decrease, and by 2030 to reduce net emissions(1) (Scopes 1 & 2) for its operated oil & gas activities operated by at least 40% compared to 2015, whereas over the same period, Group production will have risen substantially.

The second axis aims to achieve carbon neutrality (net zero emission) worldwide for indirect GHG emissions related to the use by customers of energy products sold for end use in 2050 or sooner (Scope 3). This axis requires TotalEnergies working actively with its customers, since this means they will reduce their direct emissions (Scopes 1 & 2), which correspond to TotalEnergies’ indirect emissions (Scope 3), and that they are also aiming at carbon neutrality. TotalEnergies does not have control over those indirect emissions. In energy, as with any commodity, demand typically drives supply, not the reverse. TotalEnergies manufactures neither airplanes, neither cars nor cement and cannot dictate whether a vehicle or aircraft will use gasoline, electricity or hydrogen. However, TotalEnergies wants to contribute actively to its customers’ choices and provide them with energy products with less and less carbon according to the pace they follow, and help them use less energy and choose energy sources with lower carbon intensity.

TotalEnergies has set itself targets for 2030 that the average carbon intensity of energy products used worldwide by its customers is reduced by more than 20% compared to 2015 and that the level of the Scope 3(2) worldwide emissions related to the use by its customers of energy products sold for end use in 2030 are lower in absolute terms compared to the level of 2015, despite the growth in its energy production in the coming decade.TotalEnergies is the only major actor to date to have undertaken such a commitment.

Finally, a last axis specific to Europe: given that, for the Company, Europe currently accounts for about 60% of TotalEnergies’ indirect GHG emissions related to the use by its customers of energy products sold for end use (Scope 3) and that Europe has set ambitious targets for 2030 towards carbon neutrality, TotalEnergies wants to actively contribute to this ambition for Europe and has set itself the goal of achieving carbon neutrality in Europe(3) from the production to the use by its customers of the energy products sold for end use (Scopes 1, 2, 3) in 2050 or sooner.

On the road to carbon neutrality in Europe in 2050 or sooner, TotalEnergies has set a target for 2030 of at least 30% reduction in indirect emissions related to the use by its customers of the energy products sold for end use (Scope 3) in Europe compared to 2015, in absolute terms. This 30% reduction target is extended to all the Scopes 1, 2, 3 emissions in Europe.

To fulfill its ambition, the Group is relying on four strategic levers:

  • reducing its greenhouse gas emissions,
  • diversifying its products,
  • guiding its customers through the low-carbon transition and
  • developing carbon sinks.

(1) The calculation of net emissions takes into account natural carbon sinks like forests, regenerative agriculture and wetlands.
(2) Indirect GHG emissions related to the use by customers of the energy products sold for end use (Scope 3).
(3) Europe refers to the European Union, Norway and the United Kingdom as well as Switzerland.

Our strategy: from Total to TotalEnergies

Growing energy demand and getting to Net Zero are the two global trends underpinning the TotalEnergies Energy Outlook and the changes in the energy markets that TotalEnergies is integrating into its strategy.

TotalEnergies’ strategy consists in transforming the Group into a broad energy company by profitably growing its energy production, particularly from liquefied natural gas and electricity, the two fastest growing energy markets, to create long-term value for its shareholders.

In the next decade, the Group’s sales of oil products are expected to diminish by almost 30%, and TotalEnergies’ sales mix will become 30% oil products, 5% biofuels, 50% natural gas and 15% electrons, primarily of renewable origin.

TotalEnergies also intends to reduce the carbon footprint of its business activities through negative emissions. The Group is investing in two major carbon sink solutions: natural carbon sinks, such as forests, regenerative agriculture and wetlands, and carbon capture and storage (CCS).

 

From Total to TotalEnergies

Our integrated model

TotalEnergies’ model of value creation is based on integration across the energy value chain, from exploration and production of oil, gas and electricity to energy distribution to the end customer, and including refining, liquefaction, petrochemicals, trading, and energy transportation and storage.

This integrated business model enables the Group to capitalize on synergies among the various businesses while responding to volatility in feedstock prices. Thanks to this business model, the Group’s Upstream activities, which are more dependent on the price of oil, can complement its Downstream activities, which – at the bottom of the cycle – enable the Group to generate value-added untapped by the Upstream part of the business. With this integration of its operations across the entire value chain, the Group can manage the bottom of the cycle more effectively and capture margins when the market improves.

TotalEnergies is applying this integrated model to the new electricity and renewables businesses in which it has staked out a position in recent years. The Group can leverage those businesses with the know-how and resources inherent in its business model, including a global brand and presence, technical expertise (e.g., in offshore operations and trading) and partnerships with governments and local communities.

Accelerating growth in electricity and renewables will strengthen TotalEnergies’ model of value creation by providing more predictable cash flows while offering the prospect of long-term gains and diversifying the Group’s geographical risk profile. That transition will cement the durability and resilience of TotalEnergies’ value creation model and bolster its ambition of getting to Net Zero (net zero emission).

 

 

Five strong values at the heart of the group

Safety, Respect for Each Other, Pioneer Spirit, Stand Together and Performance-Minded represent, just as its history, the part of TotalEnergies’ identity shared by all employees. These values guide daily the actions and relations of the Group with its stakeholders.

These five strong values also require all of TotalEnergies’ employees to act in an exemplary manner in priority in the following areas: safety, security, health, environment, integrity in all of its forms (particularly, the fight against corruption, fraud and anti-competitive practices) and human rights.

It is through strict adherence of its employees to these values and to this course of action that the Group intends to build strong and sustainable growth for itself and for all of its stakeholders, and thereby deliver on its commitment to better energy.