Table of contents:
The Company’s reporting is based:
- for workforce indicators, on a practical handbook on the Company’s workforce reporting protocol and methodology,
- for safety indicators, on a company rule on event and statistical reporting,
- for environmental and climate change-related indicators, on a Company reporting rule, together with segment-specific instructions,
- for societal indicators, on Company instructions.
These documents are available to all subsidiaries of the Company and can be consulted at corporate headquarters, in the relevant divisions.
Workforce and Health reporting is based on three surveys: the Global Workforce Analysis, the complementary Worldwide Human Resources Survey and the Compensation Survey. Three centralized tools (Sogreat, HR4U and the Company compensation questionnaire) are used to aid in those surveys. In addition, the Company's Health Steering Committee collected given health data covering a scope of 129 subsidiaries with a total of 53,322 employees at year-end 2022.
The Global Workforce Analysis is conducted once a year, on December 31, in all the controlled, consolidated companies (refer to Note 18 to the Consolidated Financial Statements, point 8.7 of chapter 8) having employees, i.e., 326 companies in 93 countries at December 31, 2022. The survey mainly covers worldwide workforces, hiring under permanent and fixed-term contracts (non-French equivalents of ‘contrats à durée déterminée’ or ‘indéterminée’) and employee turnover at the global level. It offers a breakdown of the workforce by gender, professional category (managers and other employees and non-French equivalents), age and nationality.
The Worldwide Human Resources Survey (WHRS) is an annual survey that comprises 275 workforce indicators, including the health indicators described in point 5.3. The indicators are selected in cooperation with the relevant liaisons and cover major components of the Company Human Resources policy, such as mobility, talent development, training, work conditions, workplace dialog, deployment of the Code of Conduct, human rights and health. The survey covers a representative sample of the consolidated scope. The data published in this document is extracted from the most recent survey, carried out in December 2022 and January 2023; 132 companies in 52 countries, representing 90.2% of the consolidated Company workforce (91,378 employees) responded to all the topics. For the health indicators, responses were collected across a broader scope of 146 companies in 52 countries, representing 91.3% of the consolidated Company workforce.
The Compensation Survey is carried out once a year with a representative sample of the consolidated scope. The data published in this document are taken from the most recent survey, carried out in July 2022 on data extrapolated at December 31, 2022: 132 companies in 52 countries, representing 90.2% of the consolidated Company workforce (91,378 employees) responded to the survey.
The ‘Socle Social Commun’ or ‘Common Social Basis’ (whereby all employees have the same rights) brings together the following in France: TotalEnergies SE, Elf Exploration Production, TotalEnergies Marketing Services, TotalEnergies Marketing France, TotalEnergies Additives and Fuels Solutions, TotalEnergies Lubrifiants, TotalEnergies Fluids, TotalEnergies Raffinage Chimie, TotalEnergies Petrochemicals France, TotalEnergies Raffinage France, TotalEnergies Global Information Technology Services, TotalEnergies Global Financial Services, TotalEnergies Global Procurement, TotalEnergies Global Human Resources Services, TotalEnergies Learning Solutions, TotalEnergies Facilities Management Services, TotalEnergies Consulting and TotalEnergies OneTech.
Environmental and climate change reporting covers all activities, sites and industrial assets in which TotalEnergies SE, or one of the companies it controls exclusively, is the operator, i.e., it either operates or contractually manages the operations (“operated domain”). Compared to the scope of financial consolidation, this corresponds to fully consolidated companies, with some exceptions (1). The Company subsidiaries that are not fully consolidated because they are not material from a financial standpoint are consolidated in the reporting on environmental indicators.
Greenhouse gas (GHG) emissions “based on the Company’s equity interest” are published for the “equity interest domain". This scope, which is different from the “operated domain,” includes all the assets in which the consolidated subsidiaries have a financial interest or rights to production. This scope includes the entire statutory scope of the consolidated non-financial performance statement and the emissions of subsidiaries consolidated by equity method or not consolidated because not material from a financial standpoint.
The list of environmental and climate change-related indicators on which an entity must report is drawn up on the basis of the materiality thresholds (refer to section entitled “Consolidation method”).
Safety reporting covers employees of subsidiaries controlled exclusively by the Company, employees of contractors working on sites, assets or activities operated by those subsidiaries and employees of transportation companies under long-term contracts. Compared to the scope of financial consolidation, this corresponds to fully consolidated companies, with some exceptions (2). Subsidiaries not consolidated because they are not material from a financial standpoint are consolidated in the reporting on safety indicators.
Reporting on societal indicators covers the subsidiaries of the EP, RC and M&S segments that are part of the One MAESTRO scope of deployment (refer to point 5.11.4 of this chapter) with an operational activity, i.e. excluding the commercial offices of M&S, the trading activities of RC and the EP subsidiaries that had no exploration or production activity in 2021.
(1) As an exception, the scope of reporting on environmental and climate change-related indicators does not include jointly controlled companies Naphtachimie (RC), BASF TOTAL Petrochemicals (RC), Appryl (RC); and approximately 80 jointly controlled assets operated by third parties in Exploration & Production.
(2) As an exception, the scope of reporting on safety indicators does not include jointly controlled companies Naphtachimie (RC), BASF TOTAL Petrochemicals (RC), Appryl (RC); and some 80 jointly controlled assets operated by third parties in EP.
Compared to the scope of financial consolidation, this corresponds to fully consolidated companies of the EP, RC and M&S segments, with some exceptions (3). It also includes subsidiaries of the EP, RC and M&S segments corresponding to that scope that are not fully consolidated because they are not material from a financial standpoint.
Reporting on the Voluntary Principles on Security and Human Rights (VPSHR) covers the Company entities and subsidiaries that are particularly exposed to the disproportionate use of force. An annual campaign is used to send auto-diagnosis and risk assessment tools to these entities. This internal process has been in place since 2016. The results obtained are consolidated by the Corporate Security Division. The 2020 campaign specifically targeted 103 countries and the response rate was 93%.
(3) As an exception, the scope of reporting for societal indicators of the EP, RC and M&S segments does not include the sales offices of M&S, the trading activities of RC, the polymer factory in Zhenjiang, China, EP operations with no exploration or production activity in 2022, subsidiaries not applying One MAESTRO in these segments, i.e. Polyblend (RC), Synova (RC), Sobegi (RC), Hutchinson (RC) and the Zeeland Refinery (RC) as well as the consolidated companies over which the Company does not have exclusive control, i.e. Naphtachimie (RC), BASF TOTAL Petrochemicals (RC), Appryl (RC), and approximately 80 jointly controlled assets operated by third parties in EP.
For the scopes defined above, the workforce, safety and societal indicators are fully consolidated.
For the “operated domain” scope, the environmental indicators are fully consolidated. For the “equity interest domain” scope, greenhouse gas emissions are consolidated based on the Company’s equity interest in the assets or its share of production for oil and gas production assets. For non-operated assets, TotalEnergies relies on information provided by its partner operators. In cases where this information is not available, estimates are made based on past data or budget data or by analogy with similar assets.
The list of environmental and climate change-related indicators on which an entity must report is drawn up on the basis of the materiality thresholds. These thresholds were calibrated in order to report 99% of greenhouse gas emissions and 95% of the Company’s other emissions observed or modeled based on data related to financial year 2021. In addition, no site accounting for more than 2% of an indicator excludes this indicator from its reporting.
Changes in scope of consolidation
Workforce indicators are calculated on the basis of the consolidated scope of the Company as of December 31, 2021. These workforce data are presented on the basis of the operational business segments identified in the 2021 Consolidated Financial Statements.
For environmental and climate change-related indicators, acquisitions are recognized from the acquisition date whenever possible, or otherwise from January 1 of the current year or the following year. Some acquisitions of 2022 will be included in the reporting published in 2024 on financial year 2023 (4). Any facility sold before December 31 is excluded from the Company’s reporting scope for the current year (5).
Regarding safety indicators, acquisitions are recognized in the same year as soon as possible or from January 1 of the following year. All facilities sold are recognized up to the date of the sale.
Regarding societal indicators, subsidiaries of the EP, RC and M&S segments are recognized as soon as possible and in any case within 36 months of acquisition.
(4) As an exception, the subsidiary Clearway Energy Group (iGRP segment), which was acquired in 2022, is not included in the climate change reporting.
(5) Except for Block 14 in Angola, the subsidiary in Myanmar and Novatek in Russia (EP segment), which were included in environmental or climate change reporting until their date of sale or deconsolidation (Novatek).
Indicator selection and relevance
The data published in this statement are intended to inform stakeholders about the Company’s annual results in social and environmental responsibility. The environmental indicators include the Company’s performance indicators with reference made, to a large extent, to the IPIECA reporting guidelines, updated in 2020.
The methodologies may be adjusted, in particular in light of the diversity of the Company’s activities, the integration of newly acquired entities, the absence of regulations or standardized international definitions, practical procedures for collecting data, or changes in methods.
Restatement of previous years’ published data is limited to changes in methodology.
Consolidation and internal control
The workforce, environmental and climate change-related, societal and health and safety data is consolidated and checked by each operational unit and business segment before being checked at Company level. Data pertaining to certain specific indicators is calculated directly by the business segments. These processes undergo regular internal audits.
The external verification (Article R. 225-105-2 of the French Commercial Code) is performed at the Company and business levels, as well as in a sample of operational entities in and outside France, selected each year on the basis of their relative contribution to the Company, previous years’ results and a risk analysis. The auditors’ independence is defined by regulations and the profession’s Rules of Professional Conduct and/or an impartiality committee.
- Consult here the independent third party’s report
Details of certain indicators
Workforce definitions and indicators
Outside of France, “management staff” refers to any employee whose job level is the equivalent of 300 or more Hay points. Permanent contracts correspond to ‘contrats à durée indéterminée’ (CDI) and fixed-term contracts to ‘contrats à durée déterminée’ (CDD), according to the terminology used in the Company’s workforce reporting.
Safety definitions and indicators
TRIR (Total Recordable Injury Rate): number of recorded injuries per million hours worked.
LTIR (Lost Time Injury Rate): number of lost-time injuries per million hours worked.
Employees of contractors: any employee of a contractor working at a site that is part of the safety reporting scope or assigned by a transportation company under a long-term contract.
Tier 1 and Tier 2: indicator of the number of loss of primary containment events with more or less significant consequences, as defined by API 754 (for downstream) and IOGP 456 (for upstream) standards - Excluding acts of sabotage and theft.
Near miss: sudden event which in slightly different circumstances could have resulted in an accident. Near misses have a potential but no actual severity.
Incidents and near misses are assessed in terms of actual or potential severity based on a scale that consists of six levels. Events with an actual or potential severity level of four or more are considered serious.
Environmental or climate change-related definitions and indicators
Blue hydrogen: refer to Low-carbon or clean hydrogen.
Life cycle Carbon intensity of the products sold: this indicator measures the average GHG emissions of energy products used by the Company’s customers during their lifecycle (i.e., Scope 1+2+3), from production in TotalEnergies facilities to end use by customers. This indicator takes into account:
- for the numerator:
- emissions connected to the production and conversion of energy products used by the customers of the Company,
- emissions connected to the use of sold products. For each product, stoichiometric emission factors (6)are applied to these sales to obtain an emission volume. Non-energy use products (bitumen, lubricants, plastics, etc.) are not taken into account,
- negative emissions stored through the use of CCUS and natural carbon sinks.
- for the denominator: the quantity of energy sold. Electricity is placed on an equal footing with fossil fuels, taking into account average capacity factors and average efficiency ratios.
(6) The emission factors used are taken from a technical note of the CDP: Guidance methodology for estimation of scope 3 category 11 emissions for oil and gas companies.
COVID-19 effect: the COVID-19 effect is assessed on the basis of a 10% decrease of petroleum products demand in 2021 compared with their structural demand. In 2022, this effect only applied to Scope 3 emissions during the first half of the year.
Energy mix of sales: the mix is calculated by taking into account electricity sales, marketable gas production from Exploration & Production and LNG sales, sales of petroleum products (from Marketing & Services and bulk refining sales) and distribution of biofuels, biomass and H2 sales. Electricity is placed on an equal footing with fossil fuels, taking into account average capacity factors and average efficiency ratios.
Freshwater: water with salinity below 2 g/l.
GEEI (Global Energy Efficiency Index): a combination of energy intensity ratios (ratio of net primary energy consumption to the level of activity) per business reduced to base 100 in 2010 and consolidated with a weighting based on each business’s net primary energy consumption. The scope of the indicator relates to the “operated domain” of the Company’s upstream oil and gas activities and the Refining & Chemicals segment, with the exception of Hutchinson. It does not include facilities for power generation from renewable sources or natural gas, such as combined-cycle natural gas power plants.
GHG: the six greenhouse gases in the Kyoto protocol, namely CO2, CH4, N2O, HFCs, PFCs and SF6, with their respective GWP (Global Warming Potential) as described in the 2007 IPCC report. HFCs, PFCs and SF6 are virtually absent from the Company’s emissions or are considered as non-material, and are therefore no longer counted with effect from 2018.
GHGs based on the Company's equity interest: greenhouse gases emitted by the sites and activities that are part of the Company’s “equity interest domain” (refer to point 5.11.2, “Scopes”). They are calculated on a pro rata basis according to the Company’s share in the entity or the production (in the case of the Company's upstream oil & gas activities).
Green hydrogen: refer to Low-carbon or clean hydrogen.
Hydrocarbon spills with an environmental impact: spills with a volume greater than 1 barrel (≈159 liters) are counted. These are accidental spills of which at least part of the volume spilled reaches the natural environment (including non-waterproof ground). Spills resulting from sabotage or malicious acts are excluded. Spills that do not affect the environment are also excluded.
Intensity of CO2 equivalent emissions: Scope 1+2 GHG emissions from the facilities operated by the Company for its upstream oil & gas activities (kg) divided by the Company’s operated hydrocarbon production in barrels of oil equivalent (boe).
Intensity of methane emissions: the volume of methane emissions divided by the volume of commercial gas produced, from all facilities operated by the Company (oil and/or gas) for its upstream oil & gas activities. Gas facilities are facilities for which the sum of exported gas production and fuel gas (in boe) represents more than 50% of the operated production (exports + fuel gas).
Low-carbon or clean hydrogen: regroups blue hydrogen (hydrogen produced in particular from natural gas via the steam reforming process associated with a capture and storage (CCS) process of the CO2 emissions presenting a carbon footprint lower than 36.4 g CO2/MJ) and green hydrogen (hydrogen produced from renewable electricity via the water electrolysis process).
Non-routine flaring: flaring other than routine flaring and safety flaring occurring primarily during occasional and intermittent events.
Oil spill preparedness:
- an oil spill scenario is deemed “significant” when its consequences are at a minimum on a small scale and have a limited impact on the environment (approximately several hundred meters of shores impacted or several tons of hydrocarbons involved),
- an oil spill preparedness plan is deemed operational if it describes the alert mechanisms, if it is based on pollution scenarios that stem from risk analyses and if it describes mitigation strategies that are adapted to each scenario; if it defines the technical and organizational resources, internal and external, to be deployed; and lastly if it indicates the items to be addressed in order to begin monitoring the environmental impact of the pollution,
- proportion of those sites that have performed an oil spill response exercise or whose exercise was prevented following a decision by the authorities: are included for this indicator sites that have performed an exercise during the year on the basis of one of the scenarios identified in the oil spill preparedness plan up to the equipment deployment stage as well as sites that have been prevented from carrying out an exercise by a competent authority (e.g. administration, port authority, local fire brigade).
Oil & gas facilities: facilities of the Company except combined-cycle natural gas power plants.
Routine flaring: flaring during normal production operations conducted in the absence of sufficient facilities or adequate geological conditions for the reinjection, on-site utilization or sale of the gas produced (as defined by the working group of the Global Gas Flaring Reduction program as part of the World Bank’s Zero Routine Flaring initiative). Routine flaring does not include safety flaring.
Safety flaring: flaring to ensure the safe performance of operations conducted at the production site (emergency shutdown, safety-related testing, etc.).
Scope 1 GHG emissions: direct emissions of greenhouse gases from sites or activities that are included in the scope of reporting for climate change-related indicators. Direct biogenic CO2 emissions are excluded from Scope 1 and reported separately.
Scope 2 GHG emissions: indirect emissions attributable to brought-in energy (electricity, heat, steam), net from potential energy sales, excluding purchased industrial gases (H2). If not stated otherwise, TotalEnergies reports Scope 2 GHG emissions according to the market- based method defined by the GHG Protocol.
Scope 3 GHG emissions: other indirect emissions. If not stated otherwise, TotalEnergies reports Scope 3 GHG emissions, category 11, which correspond to indirect GHG emissions related to the use of energy products by customers, i.e. from their combustion to obtain energy. The Company follows the oil & gas industry reporting guidelines published by IPIECA, which comply with the GHG Protocol methodologies. In order to avoid double counting, this methodology accounts for the largest volume in the oil, biofuels and gas value chains, i.e. the higher of the two production volumes or sales to end customers. For TotalEnergies, in 2022, the calculation of Scope 3 GHG emissions for the oil and biofuels (7) value chains considers products sales (higher than production) and for the gas value chain, marketable gas production (higher than gas sales either as LNG or as part of direct sales to B2B/B2C customers). A stoichiometric emission (oxidation of molecules to carbon dioxide) factor is applied to these sales ro production to obtain an emission volume.
Upstream oil and gas activities: the Company’s upstream oil and gas activities include the oil and gas exploration and production activities conducted by the Exploration & Production and Integrated Gas, Renewables & Power segments. They do not include power generation facilities based on renewable sources or natural gas such as combined- cycle natural gas power plants.
Water consumption: volume of water (fresh, brackish or sea water) taken that is not discharged into the environment or to a third party.
Waste: all waste is counted, with the exception of drilling debris, mining cuttings and polluted soil at inactive sites, which are counted separately.
(7) The abatement rates applied to the emissions of biofuels compared to equivalent fossil fuels are in line with the minimums required by European regulations (REDII). An average value of approximately -55% is used in the calculation of the carbon intensity indicator.
One MAESTRO (Management and Expectations Standards Toward Robust Operations): the Company’s operational Health, Safety, Environment and Societal reference framework. This reference framework applies to companies controlled exclusively by TotalEnergies with the following exceptions: subsidiaries acquired for less than three years ago and subsidiaries covered by an audited reference framework of their own, namely Hutchinson (RC), Zeeland Refinery (RC), Polyblend (RC), Sobegi (RC), Synova (RC), Saft Groupe (iGRP), TEP Barnett (iGRP) and SunPower (iGRP).