In the face of climate change, the scientific community emphasizes the crucial role played by cumulative greenhouse gas emissions and the collective goal of achieving carbon neutrality.
Although we must aim for drastic reductions in the use of fossil fuels worldwide to mitigate global warming, there is no one-size-fits-all path. Indiscriminately reducing the supply of all fossil fuels without first developing capabilities for low-carbon alternatives would put supply out of sync with demand, triggering inflation and worsening social inequalities.
Therefore, everyone - governments, producers, and consumers - will need to mobilize collectively to ensure the emergence of a global market for decarbonized energy sources.
TotalEnergies is one of the key players in the energy transition. Aware of the issues raised by its activities and its transformation to achieve Net Zero by 2050, the Company is actively working, alongside society, to provide tangible solutions.
In June 2017, the Task Force on Climate-related Financial Disclosures (TCFD) of the G20's Financial Stability Board published its final recommendations on climate-related information that companies should disclose. TotalEnergies publicly announced its support for TCFD and its recommendations, implementing them starting from its 2017 annual report.
To define its strategy and address the challenges posed by climate change, TotalEnergies relies on a clearly defined organizational and governance structure. Climate-related issues are addressed at the highest levels of the organization, both by the Board of Directors and the Executive Committee.
TotalEnergies' Board of Directors is responsible for creating long-term value, ensuring that the Company's strategy and investment projects take into account climate-related concerns.
To assist the Board in carrying out its duties, a specific ongoing climate training program has been approved for Directors. This program includes a wide range of modules covering the following topics: energy, climate change and environmentral risks, financial risks, and financial opportunities.
The Strategy & Sustainability Division coordinates the Company's activities through entities responsible for strategy and market analysis, sustainability and climate, safety, health and the environment, relations with public authorities and civil society, and internal audit. Its president also chairs the Risk Committee, which oversees the Company's investments.
Identification of climate-related risks and opportunities: climate change risks are among the risks analyzed by TotalEnergies' Risk Management Committee and are classified by type and severity.
Impact of climate-related risks and opportunities: our multi-energy strategy and strong financial foundation are our strengths, allowing us to be a significant player in sustainable energy and to make the most of current developments, including potential price volatility that may occur. Our multi-energy portfolio of activities also provides us with flexibility to position ourselves as leaders in the energy transition, regardless of its pace. The years from 2020 to 2030 will mark the transformation of the Company into a true multi-energy company.
The climate ambition of net-zero emissions by 2050, together with society: TotalEnergies is committed to reducing its carbon footprint from energy production, processing, and distribution to its customers. Although the speed of the transition will depend on the pace of government policies, consumer behaviors, and corresponding demand, TotalEnergies has embraced the need to offer its customers affordable and lower-carbon energy products and to support its partners and suppliers with their own strategies to achieve this goal.
Resilience of the organization's strategy: In recent years, the Company has managed to create a more resilient portfolio through active management. The upstream portfolio has seen a 50% change since 2015, with a reserves replacement rate of over 100% in the period 2015-2021 (excluding Russia).
$5/boe production cost for oil and gas extraction and production activities managed in 2022.
17 kg CO2e/boe greenhouse gas emissions intensity (Scopes 1+2) for oil and gas extraction and production activities managed in 2022.
In order to support the global Net Zero ambition (Scope 1+2+3), TotalEnergies has set objectives and introduce a series of indicators to guide its performance, in collaboration with society.