Table of contents:
- Climate change-related challenges
- Risk management
- Targets and metrics to measure climate-related risks and opportunities
- Participation in dialogue with TCFD
- European Taxonomy
Climate change-related challenges (as per TCFD recommendations)
TotalEnergies is a major player in the energy transition. We are mindful of the issues related to a just transition raised by our activities and our own transformation to achieve net-zero emissions by 2050, together with society, and we are providing concrete answers.
In June 2017, the TCFD (Task force on Climate-related Financial Disclosures) of the G20’s Financial Stability Board published its final recommendations on information pertaining to climate to be released by companies. TotalEnergies publicly announced its support for the TCFD and its recommendations and has implemented them since its 2017 annual report.
To define its strategy and take into account the challenges posed by climate change, TotalEnergies relies on a clearly defined organizational structure and governance. Climate issues are addressed at the highest levels of the organization, by both the Board of Directors and the Executive Committee.
TotalEnergies’ Board of Directors is dedicated to promoting long-term value creation. It ensures that both the Company’s strategy and the investment projects submitted for its consideration take account of climate concerns. To aid the Board in carrying out its duties, a continuous training program on climate was approved for the Directors in 2021. It includes a variety of modules on the following topics: energy, climate change and environmental risks, financial risks and opportunities.
The Strategy & Sustainability Division coordinates the Company’s activities through the entities in charge of strategy and markets analysis, sustainability and climate, and safety, health and environment, relations with public authorities and civil society, and internal audit. Its president also chairs the Risk Committee, which is in charge of the Company’s investments.
Identification of climate-related risks and opportunities
The risks posed by climate change are included among the risks analyzed by the TotalEnergies Risk Management Committee. TotalEnergies ranks its risks by type and gravity.
Our strategy: an integrated multi-energy Company
Our integrated multi-energy strategy and our solid financial base are strengths that allow us to be a major player in the sustainable energy the world needs and make the most of current developments, including the potential price volatility they may cause.
Our portfolio of multi-energy businesses gives us the flexibility and optionality to position ourselves as a leader in the energy transition, regardless of its speed. The years 2020 to 2030 will mark TotalEnergies’ transformation into a true multi-energy company.
Our climate ambition: net zero emissions by 2050, together with society
With regard to greenhouse-gas emissions, TotalEnergies is committed to lowering its carbon footprint from energy production, processing and delivery to our customers.
Although the speed of the transition will depend on the pace of change in government policies, consumer behaviours and corresponding demand, TotalEnergies has embraced the need to offer our customers affordable, less carbon-intensive energy products, and to lend support to our partners and suppliers with their own low-carbon strategies.
Drawing on the actions already taken to evolve our energy offerings and reduce carbon emissions from our operations, in 2022 TotalEnergies published an outline of what our businesses might look like as we become a carbon-neutral energy company by 2050, together with society.
Resilience of the organization’s strategy
The Company has succeeded in creating a more resilient portfolio through very active portfolio management in recent years: the upstream portfolio has seen a 50% change since 2015, for an oil reserves replacement ratio above 100% over 2015-2021 (excluding Russia).
The risks related to climate issues are fully integrated in TotalEnergies’s global risk management processes.
Targets and metrics to measure climate-related risks and opportunities
In order to support its ambition of carbon neutrality (net zero emission) at a global scale (Scope 1+2+3), together with society, TotalEnergies has set targets and introduced a number of indicators to steer its performance.
Participation in dialogue with TCFD
TotalEnergies publicly announced its support for the TCFD and its recommendations and has implemented them since its 2017 annual report.
TotalEnergies has calculated the proportion of its eligible and non-eligible economic activities under the Regulation on the basis of the provisions of the delegated regulation (EU) 2021/2139 of 4 June 2021 and the delegated regulation (EU) 2021/2178 of 6 July 2021.
Summary of the ratios of Eligible Activities and Aligned Activities
|Controlled scope - 2022||Eligible activities||Aligned activities|
|Renewables and electricity||3.0%||13.7%||1.1%||13.3%|
|including electricity generation from natural gas||1.8%||0.3%||0.0%||0.0%|
|Biofuels and chemicals||4.4%||3.1%||0.1%||0.6%|
|Other eligible activities||0.1%||0.6%||0.1%||0.6%|
|Proportional view - 2022||Eligible activities||Aligned activities|
|Renewables and electricity||3.2%||29.8%||1.4%||29.5%|
|including electricity generation from natural gas||1.6%||0.2%||0.0%||0.0%|
|Biofuels and chemicals||5.5%||3.5%||0.1%||0.6%|
|Other eligible activities||0.2%||0,7%||0.2%||0.7%|