Independent third party’s report
This is a free translation into English of the original report issued in French and it is provided solely for the convenience of English speaking readers. This report should be read in conjunction with, and construed in accordance with, French law and professional standards applicable in France.
To the General Assembly,
In our quality as an independent third party, accredited by the COFRAC under number n° 3-1050 (scope of accreditation available on the website www.cofrac.fr), and as a member of the network of one of the statutory auditors of your entity (hereafter “entity”), we present our report on the consolidated non-financial statement established for the year ended on the 31 December 2018 (hereafter referred to as the “Statement”), presented in chapter 5 of the management report pursuant to the legal and regulatory provisions of Articles L. 225 102-1, R. 225-105 et R. 225-105-1 of the French Commercial Code (Code de commerce).
Responsibility of the entity
It is the responsibility of the Board of Directors to establish the Statement in compliance with the legal and regulatory provisions including a presentation of the business model, a description of the main non-financial risks, a presentation of the policies applied regarding these risks as well as the results of these policies, including key performance indicators.
The Statement has been established based on the procedures of the entity (hereinafter referred to as the “Criteria”), the significant elements of which are presented in the Statement and on the “Reporting scopes and method” section.
Independence and quality control
Our independence is defined by the provisions of Article L. 822-11-3 of the French Commercial Code and the Code of Ethics (Code de déontologie) of our profession. In addition, we have implemented a quality control system, including documented policies and procedures to ensure compliance with ethical standards, professional standards and applicable legal and regulatory requirements.
Responsibility of the independent third party
On the basis of our work, our responsibility is to provide a report expressing a limited assurance conclusion on:
— the compliance of the Statement with the provisions of Article R. 225-105 of the French Commercial Code;
— the fairness of the information provided in accordance with Article R. 225 105 I, 3° and II of the French Commercial Code, namely the results of the policies, including key performance indicators, and the actions related to the main risks, hereinafter the “Information”.
However, it is not our responsibility to comment on:
— the entity’s compliance with other applicable legal and regulatory provisions, particularly the French duty of care law and anti-corruption and tax evasion legislation;
— the compliance of products and services with the applicable regulations.
Nature and scope of the work
Our work described below has been carried out in accordance with the provisions of Articles A. 225-1 et seq. of the French Commercial Code determining the conditions in which the independent third party performs its mission and according to professional standards as well as to the international ISAE standard 3000 – Assurance engagements other than audits or reviews of historical financial information.
The work that we conducted allows us to assess the compliance of the Statement with the regulatory provisions and the fairness of the Information:
— we obtained an understanding of the entity’s activities and of all the entities included in the scope of consolidation, the statement of the main social and environmental risks related to this activity, and, where applicable, its effects regarding compliance with human rights, anti-corruption, tax evasion legislation, as well as the resulting policies and their results;
— we assessed the suitability of the Criteria with respect to their relevance, completeness, reliability, neutrality and understandability by taking into consideration, where relevant, the best practices of the industry;
— we verified that the Statement covers each category of information set out in Article L. 225-102-1 III of the French Commercial Code regarding social and environmental matters, as well as respect of human rights and anti-corruption and tax evasion legislation;
— we verified that the Statement includes an explanation justifying the absence of the information required by the 2nd paragraph of III of Article L. 225-102-1 of the French Commercial Code;
— we verified that the Statement presents the business model and the main risks associated with the activity of the entity and of all the entities included in the scope of consolidation; including, where relevant and proportionate, the risks associated with their business relationships, their products or services, as well as their policies, actions and results, including key performance indicators;
— we verified, where relevant with respect to the main risks or the policies presented, that the Statement presents the information required under Article R. 225-105 II of the French Commercial Code;
— we assessed the process used to select and validate the main risks;
— we inquired about the existence of internal control and risk management procedures put in place by the entity and of all the entities included in the scope of consolidation;
— we assessed the consistency of the results and the key performance indicators with respect to the main risks and policies presented;
— we verified that the Statement includes a clear and reasoned explanation for the absence of a policy regarding one or more of those risks;
— we verified that the Statement covers the consolidated scope, i.e., all the companies included in the scope of consolidation in accordance with Article L. 233-16 of the French Commercial Code, with the limits specified in the Statement;
— we assessed the collection process implemented by the entity to ensure the completeness and fairness of the Information;
— we implemented for the key performance indicators and other quantitative results that we considered to be the most important presented in Appendix 1:
– analytical procedures to verify the correct consolidation of the data collected as well as the consistency of their evolutions,
– detailed tests based on samples, consisting of checking the correct application of the definitions and procedures and reconciling the data with the supporting documents. This work was carried out with a selection of contributing entities listed hereafter: Total Gabon, Total E&P Myanmar, Antwerp Refinery, Leuna Refinery, SunPower Philippines Manufacturing Limited, Saft S.A.S site of Poitiers, Total Philippines Corporation, Total Marketing Gabon which cover between 5% and 28% of the consolidated data selected for these tests (5% of total workforce, 21% of direct operated GHG emissions (scope 1), 25% of freshwater withdrawals, 28% of waste);
— we consulted documentary sources and conducted interviews to corroborate the qualitative information (actions and results) that we considered the most important presented in Appendix 1;
— we assessed the overall consistency of the Statement based on our knowledge of all the entities included in the scope of consolidation.
We believe that the work we have carried out, based on our professional judgment allows us to express a limited assurance conclusion; a higher level of assurance would have required more extensive verification work.
Means and resources
Our verification work mobilized the skills of nine people and took place between September 2018 and March 2019 on a total duration of intervention of about thirty weeks.
We conducted interviews with around twenty persons responsible for the preparation of the Statement including in particular the divisions Strategy & Climate, Legal Affairs, HSE, Human Resources, Civil Society Engagement, Support & Purchasing Performance.
Based on our work, we have not identified any significant misstatement that causes us not to believe that the consolidated non-financial statement complies with the applicable regulatory provisions and that the Information, taken together, is fairly presented, in compliance with the Criteria.
Paris-La Défense, the 13th March 2019
French original signed by:
Independent third party ERNST & YOUNG et Associés
Christophe Schmeitzky, Sustainable Development Partner
Jean- François Bélorgey Partner