Becoming the responsible energy major
A COLLECTIVE AMBITION TO MEET THE CHALLENGES FACING THE ENERGY SECTOR
Total is an integrated energy group and one of the world’s largest. Through its international presence and its activities, Total has the intention to make its development a vehicle of progress that benefits as many people as possible and to be a factor of positive change for the societies and regions where it is present.
The United Nations, whose member States adopted in 2015 the 17 Sustainable Development Goals (SDGs), have called upon corporations’ contribution to collectively find solutions to sustainable development challenges. Total has committed since 2016 to contributing to the SDGs and has structured its approach to responsible development in order to make a more significant contribution to the SDGs, and in particular regarding access to energy, decent work, human rights and climate change.
Access to energy is a source of progress. It is the condition for economic and social development as well as for the improvement of the standard of living of people around the world. In most countries, and in the developing countries in particular, access to low-cost energy is a priority.
The Group’s vocation is to produce the energy that the world needs, and will need in the future, and to make it accessible to as many people as possible. This is a real challenge: despite progress made since 2010, 840 million individuals(1) still have no access to electricity.
This vocation is to be accomplished in a responsible manner and by working to provide an effective response to the climate change challenge, in particular.
Meeting the energy needs of a growing global population, providing tangible solutions to contribute limiting global warming, adapting to new patterns of energy production and consumption and changes to the expectations of customers and stakeholders constitute the challenges that a major energy player like Total can help tackle.
In 20 years, Total’s ambition is to be a leading player in energy, a player that contributes to the development of growing populations by supplying them with affordable energy, a player that helps provide answers to the climate challenge, a player that knows how to evolve with its customers.
Total is committed to supplying people with the energy they need:
- by producing, transforming and distributing energy at an affordable cost and to the highest safety and environmental standards;
- by supplying a responsible energy mix that takes the SDS scenario of the IEA into consideration and with a carbon intensity that regularly decreases;
- by providing its customers with solutions that enable them to use energy responsibly;
- with a quality of local service that is recognized. Total’s ambition is to become the responsible energy major. Its raison d’être is to supply to as many people as possible a more affordable, more available and cleaner energy.
Total’s ambition is to become the responsible energy major, its raison d’être is to supply to as many people as possible a more affordable, more available and cleaner energy.
(1) Source: 2019 Tracking SDG7: the Energy Progress Report.
AN ESTABLISHED STRATEGY
The Group’s strategy takes into account the evolution of energy markets to respond to the challenges of climate change, notably relying on scenarios of the International Energy Agency.
The IEA 2019 World Energy Outlook anticipates three scenarios (Stated Policies Scenario (SPS), Current Policies Scenario (CPS) and Sustainable Development Scenario (SDS). Among these scenarios, the SPS (central scenario of the IEA) for the short/mid term and the SDS for the mid/long term are important references for the Group. The Group therefore establishes its strategy and long-term price trajectory in line with the IEA’s SDS scenario, which is compatible with the Paris Agreement, and foresees oil prices converging towards 50$2018/b by 2050.
The SPS takes into account the measures already implemented by countries in the energy area as well as the effects of the policies announced by the Governments (including the Nationally Determined Contributions – NDC – of the Paris Agreement). The SDS takes into account necessary measures to achieve a temperature rise of less than 2°C compared to pre-industrial levels, and the energy-related goals set in the “2030 Agenda for Sustainable Development” adopted in 2015 by the UN members.
Consequently the Group’s strategy relies on four pillars:
- expanding along the natural gas value chain;
- developing profitable low-carbon electricity businesses;
- focusing on oil assets at a low breakeven point;
- investing in technologies and businesses that contribute to carbon neutrality.
The ambition of this strategy is to reduce the carbon intensity of the energy mix that the Group offers to its customers (-15% by 2030 and -40% by 2040), and thus to contribute to the evolution of market demand and society’s energy transition.
Total acts on several complementary levels:
- on products, by developing energies with a lower carbon content, such as gas (including biogas and hydrogen), renewables and biofuels;
- on demand, by developing, for example, electric mobility or LNG as transport fuel;
- on emissions, by first reducing emissions from its facilities (CO2 and methane), but also by advising its customers in reducing their emissions (electric mobility solutions, storage, energy efficiency consulting) and by developing carbon sinks (nature-based solutions or CCUS).
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 Total’s identity shared by all employees. These values guide the daily actions and relations of the Group with its stakeholders.
These five strong values also require all of Total’s 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 prevention of corruption, fraud and anti-competitive practices) and human rights.
It is through strict adherence 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.
TOTAL’S CHAIRMAN AND CEO’S COMMITMENTS
THE FUTURE OF ENERGY: PATRICK POUYANNÉ INTRODUCES TOTAL’S AMBITION
GOVERNANCE TO SUPPORT THE GROUP’S AMBITION
Composed as of March 18, 2020, of 12 directors, including 9 independent members, the Board of Directors reflects diversity and complementarity of experience, expertise, nationalities and cultures necessary to take account of the interests of all the Group’s shareholders and stakeholders.
The Board of Directors determines the strategic orientations of Total and supervises their implementation. It approves investment and divestment operations when they concern amounts that exceed 3% of the Group’s equity and examines all matters related to the proper running of the Company. It examines major operations that reflect the inclusion of climate challenges in Total’s strategy and verifies their strategic coherence. It monitors the management of both financial and non-financial matters and ensures the quality of information provided to shareholders and to financial markets.
The Board of Directors relies on the work of four Committees that it has constituted: the Audit Committee, the Governance and Ethics Committee, the Compensation Committee and the Strategy & CSR Committee.