RATING
Outlook
Negative
SECTOR
Energy and petroleum
Chief Sustainability Officer
T: N/A
E-mail: N/A
Stock Exchange and Ticker
EPA: TTE
Website
Contact
T: +33 (0)1 47 44 45 46
E.mail: N/A
Listing
- #375 World’s Best Employers (2022)
- #29 Global 2000 (2022)
Awards
- MSCI ESG rating (AAA)
- Sustainalytics ESG Risk rating (Negligible)
- ISS ESG Corporate rating (A+)
- S&P Glogbal ESG (100)
- Refinitiv (100)
- CDP Climate Change (A)
- CDP Water (A)
- EcoVadis platform, the Gold status
Revenue
$149.4B
Market Capitalisation
$129.6B
Employees
101,309
Content source
TotalEnergies Sustainability Report
Evaluation of TotalEnergies
According to Oil and Gas Stocks That Will Help You Strike It Rich, TotalEnergies is the greenest option. While putting an emphasis on circular resource practices, the company is actively leading the development of biofuels and biogas, clean hydrogen, and synthetic fuels combining hydrogen and carbon. These molecules play a role in advancing the energy transition. It also employs carbon capture and storage (CCS) to combat climate change.
The company has established definite goals to be achieved by 2030 and 2050, but it has not yet made enough progress in that direction. Since 2015, it has reduced its carbon emissions by only 20% compared to the baseline. Total Energies is however currently modernizing its business practices to deal with the twin issue of using more energy while producing fewer emissions.
It also has numerous partnerships that range from fighting climate change to safeguarding biodiversity. While it has been working with ISO 14001 for environmental management, it obviously needs to gain more certification to transition to a fully sustainable business model and increase transparency.
In addition to the fact that it was given good index scores by reputable third parties, there is also compelling evidence to reject claims that the company is engaging in greenwashing. Particularly this year, it is formally prosecuted for “greenwashing” for the first time. On the other hand, unfortunately, it is also possible to find some mentions of greenwashing online.
In conclusion, even though its objectives or the actions it has taken are positive steps toward sustainability, it still acts in a manner that harms the environment, excluding TotalEnergies from most lists of sustainable businesses. Therefore, in spite of the great decarbonisation progress, because of the strong evidence of greenwashing, the overall evaluation is a C, with a negative outlook.
Sustainability Scorecard
TotalEnergies Company Activity
Created in 1924 to enable France to play a key role in the great oil and gas adventure, TotalEnergies has always been driven by an authentic pioneering spirit. It has discovered some of the most productive fields in the world. Its refineries have created increasingly sophisticated products and its extensive distribution network has rolled out an ever-expanding range of services.
As for the Company’s culture, it has been forged on the ground, underpinned by an unwavering commitment to safety and performance. Throughout its long history, TotalEnergies was to frequently cross paths with two other oil companies, one French – Elf Aquitaine – and the other Belgian – Petrofina. Sometimes competitors, some-times partners, they gradually learned to work together. Their talent lay in being able to combine their strengths against their competitors. Such was the major challenge behind the mergers of 1999. They gave rise to the fourth oil major, a group built on a wealth of expertise and experience. Some 20 years later, Total became TotalEnergies, driven by a powerful ambition: to be a world-class player in the energy transition and to achieve, together with society as a whole, carbon neutrality in all its global activities by 2050.
TotalEnergies Sustainability Activity - As per company declarations
TotalEnergies is changing into a multi-energy firm and implementing specific action plans to lower its emissions and accomplish its short- and medium-term goals in order to reach net zero by 2050, together with society.
The Company is acting to:
- Reduce emissions from its operated industrial facilities (Scope 1+2) by more than 40% by 2030, and Disclose the Progress at its Operated and Non-Operated Facilities.
- Together with society, including its customers, suppliers, partners, and public authorities, reduce the indirect emissions associated with its goods (Scope 3), by assisting in the transformation of its customers’ energy consumption.
Utilizing the Avoid – Reduce – Compensate philosophy, TotalEnergies takes precautions to limit the environmental effects of all its activities. The first approach is to limit any effects as much as you can. The Company employs the greatest technology available to mitigate damages that cannot be prevented and, as the last option, pays for any lingering effects. Conserving biodiversity, safeguarding water resources, and implementing circular resource management are the Company’s top three environmental concerns.
Being a responsible energy provider also entails making a positive difference for the people who inhabit our world. Their personnel, whose abilities and dedication are the key determinants of their long-term performance, are the subjects of this goal in the first place.
An equitable transition for their partners and staff is necessary for their transformation into a multi-energy organization to flourish. Their goal is to be a role model for employers and operators and to do this, they rely on the core values of their business model and Code of Conduct, which applies to all of their operations globally. These values include safety, respect for one another, and openness in their social interaction.
TotalEnergies, which has operations in 130 countries and engages in activities throughout the whole energy value chain, aspires to create shared prosperity with all of its diverse stakeholders. The Company is dedicated to making sure that both value and constructive change are produced by its ventures and initiatives. For this purpose, TotalEnergies conducts all of its dealings with its stakeholders—including its workers, clients, partners, host states and communities, civil society leaders, suppliers, and investors—in accordance with its Code of Conduct.
Certificate & Labels, Standards and Frameworks
- ISO 14001
TotalEnergies in the news: Press Reviews and Social Media
By 2030, power produced “primarily” from renewable sources would account for 15% of their sales, while oil and gas would still account for 80%. The business may opt to make significant investments in environmental policies and wholly renewable energy sources, not just in terms of dollar amounts but also in terms of percentage.
30 years of actively opposing climate change, supporting authoritarian governments, and aggressively exploring the need to safeguard natural surroundings. The oxymoron aside, it is also one among the “greenest of the oil stocks.” Within its industry, TotalEnergies is “somewhat” well-regarded. In addition, this business has one of the highest ESG ratings in its sector. In the medium to long term, these sustainable investments may be incredibly rewarding.
One of the seven “supermajor” oil firms and the heavyweight of the French CAC 40 Index, TotalEnergies has been drawing attention for years. In light of its large GHG emissions, TotalEnergies does not spend nearly enough on ESG standards. In comparison to the “greenwashing” ads that big firms currently saturate us with, it would be wonderful publicity if this company committed just 1% of its earnings to these projects, which would cost more than $2 billion.
TotalEnergies spends $52 million annually, or 29% of its marketing expenditure, on its environmental image (the highest percentage among the five carbon majors). One of the top five producers of fossil fuels, the Total Group is responsible for a +4°C average increase in global temperature. Frank Thinnes, a climate, and energy campaigner with Greenpeace Luxembourg believe offset systems like the Redd+ initiative, backed by TotalEnergies, allow ongoing environmental damage and encourage the commercialization of nature. Its annual greenhouse gas emissions total 488 million tonnes, which add to a +4°C increase in average world temperature. Twenty other international organizations, including Greenpeace, are calling for a ban on the promotion of polluting businesses that risk and injure millions of people.
However, oil firms like TotalEnergies are making every effort to maintain the ability to market their climate-damaging goods. Our planet and our future are currently being destroyed by the deception and greenwashing of fossil fuel firms like TotalEnergies, according to Frank Thinnes.
A greenwashing lawsuit against oil and gas giant TotalEnergies has been launched by environmentalists who claim that the company’s rebranding drive misleads customers given its continuous investment in fossil fuels. The case may influence how large oil and gas companies promote their efforts to combat climate change. TotalEnergies asserts that its rebranding effort is dishonest considering its continuous investment in fossil fuels. The complainants contend that TotalEnergies violated European consumer law when it changed its name from Total to TotalEnergies and used the Twitter hashtag “#MoreEnergiesLessEmissions” in order to promote its goal of being carbon neutral. Several NGOs, including Greenpeace, Friends of the Earth, Notre Affaire à Tous, and ClientEarth, have filed a lawsuit against TotalEnergies.
Adani New Industries Limited (ANIL), a division of the Adani Group, will see a 25% ownership share purchased by TotalEnergies. In order to create the center, the joint venture plans to invest $50 billion over the next eight years. By the year 2030, the hub should be fully operational and producing 1 million metric tons per year of green hydrogen using renewable energy sources. The project is sufficient to produce 2 million mt of green hydrogen even at the current price of $4 to $5 per kilogram, despite the fact that the specifics of the transaction between the two companies have not been made public. This is the largest deal in India and likely one of the largest in the world (Kashish Shah). Together, TotalEnergies and Adani Group will make India the most affordable green hydrogen generator in the world.
Highlights from TotalEnergies Sustainability Report
Achievements
- Established the Northern Lights CCS joint venture, worked with Shell, EBN, and Gasunie on the Aramis CCS project in the Netherlands, and additionally collaborated with Air Liquide, Borealis, Esso, and Yara to use CCS to decarbonize the Normandy basin
- Purchasing a 20% stake in Adani Green Energy Limited (AGEL), a division of Adani, the biggest private energy and infrastructure conglomerate in India, as part of a partnership with Adani (January 2021)
- Four solar projects totaling 2.2 GW and 600 MW of battery storage will be installed between 2023 and 2024 after being acquired from SunChase Power and MAP RE/ES (February 2021)
- Establishment of a 50/50 joint venture with Hanwha subsidiary 174 Power Global (January 2021): 12 projects totaling 1.6 GW in capacity, including energy storage
- The biggest battery storage facility in France (61 MWh) will be put online by TotalEnergies near Dunkirk in December 2021
- TotalEnergies has signed agreements to supply LNG to India (up to 3 Mt per year with partner Adani) and China (up to 1.4 Mt per year via a contract with Shenergy Group)
- Signed major multi-energy agreements in Iraq covering the construction of a new gas network and treatment units, the construction of a large-scale seawater treatment unit, and the construction of a 1 GW photovoltaic power plant
- In the United Arab Emirates, TotalEnergies has joined the Masdar and Siemens Energy initiative to build a pilot unit for the production of green hydrogen to be used to convert CO2 into sustainable aviation fuel
- An analysis of turbine energy consumption at one offshore production site led to a 30% reduction in the complex’s fuel gas consumption during 2020
- Partnered with GHGSat in 2021 to quantify small leaks and develop satellite-based measurement technology suitable for offshore facilities, a world first
- LNG distribution for cruise ships and marine transportation
- Forming partnerships to decarbonize the maritime sector
- A biofuel-powered pilot fly
Weaknesses and Setbacks
- Lack of certificates
- Not clear progress
- Greenwashing
Targets vs Progress Reported
| Target | Results reported |
|---|---|
| 40% reduction by 2030 in net Scope 1+2 emissions compared to 2015 | - Lowered emissions from its operated facilities (Scope 1+2) by 20% from 2015 |
| Lower carbon products to reduce the lifecycle carbon intensity of energy products sold by at least 20% by 2030 | - Reduced the share of their sales from petroleum products to 44% of the total from 65% in 2015 |
| Reduce methane emissions by 80% by 2030 | - Insufficient |
| Reduce its global Scope 3 emissions to below 2015 levels | - Insufficient |
| Reduce freshwater withdrawals by 20% between 2021 and 2030 at sites in water-stressed areas | - Insufficient |
