Reporting scopes and method
Table of contents:
The Group’s reporting is based:
- for social indicators, on a practical handbook titled “Corporate Social Reporting Protocol and Method”;
- for safety indicators, on the Corporate Guidance on Event and Statistical Reporting;
- for environmental indicators, on a Group reporting procedure, together with segment-specific instructions.
These documents are available to all companies of the Group and can be consulted at Corporate headquarters, in the relevant departments.
Social reporting is based on two surveys: the Global Workforce Analysis, and the complementary Worldwide Human Resources Survey. Two centralized tools (Sogreat and HR4U) facilitate performance of the above surveys.
— The Global Workforce Analysis is conducted once a year, on December 31, in all the controlled, consolidated Group companies (refer to Note 18 to the Consolidated Financial Statements, point 8.7 of chapter 8) having employees, i.e., 321 companies in 102 countries on December 31, 2019. This survey mainly covers worldwide workforces, hiring under permanent and fixed-term contracts (non-French equivalents of contrats à durée déterminée or indéterminée) as well as employee turnover at the worldwide level. This survey produces 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 231 social indicators, including the health indicators described in the “people’s health and safety” section. The indicators are selected in cooperation with the relevant counterparties and cover major components of the Group Human Resources policy, such as mobility, career management, training, work conditions, social dialogue, Code of Conduct deployment, human rights, health, compensation, retirement benefits and insurance. 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 2019 and January 2020 at 127 companies in 52 countries, representing 88,7% of the consolidated Group workforce (95,604 employees) replied to the survey.
The “Socle social commun” scope covers the following companies in France: TOTAL S.A., Elf Exploration Production, Total Marketing Services, Total Marketing France, Total Additifs et Carburants Spéciaux, Total Lubrifiants, Total Fluides, Total Raffinage Chimie, Total Petrochemicals France, Total Raffinage France, Total Global Information Technology Services, Total Global Financial Services, Total Global Procurement, Total Global Human Resources Services, Total Learning Solutions, Total Facilities Management Services and Total Consulting.
Reporting on environmental and climate change-related indicators covers all activities, sites and industrial assets in which TOTAL S.A., or one of the companies it controls exclusively, is the operator, i.e., 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 subsidiaries operated by the Group 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 Group’s equity interest” are also 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 some 30 equity affiliates.
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 for 2019 (refer to the section entitled Consolidation method).
Safety reporting covers employees of subsidiaries controlled exclusively by the Group, employees of contractors working on sites, assets or for activities operated by these subsidiaries and employees of transport companies under long-term contracts. Compared to the scope of accounting consolidation, this corresponds to fully consolidated companies, with some exceptions(2). The subsidiaries operated by the Group that are not fully consolidated because they are not material from a financial standpoint are consolidated in the reporting on safety indicators.
In 2019, the Group safety reporting scope covered 467 million hours worked, equivalent to approximately 260,000 people.
Reporting on the Voluntary Principles on Security and Human Rights (VPSHR) covers the Group entities and subsidiaries that are particularly exposed to the disproportionate use of force. It is based on an internal survey, whose results are consolidated by the Security division. In 2018, the VPSHR report covered approximately 100 entities.
(1) As an exception, the scope of reporting on environmental and climate change-related indicators does not include Polyblend, which is controlled exclusively, Naphtachimie, BASF TOTAL Petrochemicals and Appryl, which are controlled jointly, 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 Polyblend, which is controlled exclusively, Naphtachimie, BASF TOTAL Petrochemicals and Appryl, which are controlled jointly, and approximately 80 jointly-controlled assets operated by third parties in Exploration & Production. The scope includes Hanwha TOTAL Petrochemicals Co. Limited and Bayport Polymers LLC, which are financially consolidated as equity affiliates.
For the “operated domain” scope, the environmental indicators are fully consolidated. For the “equity interest domain”, greenhouse gas emissions are consolidated based on the Group’s equity interest in the assets or on its share of production for oil and gas production assets. For non-operated assets, Total relies on information provided by its partner operators. In cases where this information is not available, estimates are made based on past data, budget data or by pro rata 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 Group’s other emissions observed or modeled based on data related on fiscal year 2018. In addition, no site accounting for more than 2% of an indicator excludes this indicator from their reporting.
Changes in scope
Social indicators are calculated on the basis of the consolidated scope of the Group as of December 31, 2019. These social data are presented on the basis of the operational business segments identified in the 2019 Consolidated Financial Statements.
Regarding safety indicators, acquisitions are taken into consideration as soon as possible and by no later than January 1 of the following year. Approximately 10 subsidiaries acquired in 2019 will be included in the reporting published in 2021 on fiscal year 2020(3). All facilities sold are taken into consideration up to the date of the sale.
For environmental and climate change-related indicators, acquisitions are taken into account as of January 1 of the current year to the extent possible or as of the following year. Approximately 10 subsidiaries acquired in 2019 will be included in the reporting published in 2021 on fiscal year 2020(3). Any facility sold before December 31 is excluded from the Group’s reporting scope for the current year.
(3) Example: Synova (RC), Go Electric (iGRP), Epping (M&S), lubricant plant in Tanzania (M&S), Total Lubricant do Brasil (MS&), AS24 network in the Netherlands (MS). No subsidiaries in the EP segment were sold in 2019.
Indicator selection and relevance
The data published in the Registration Document is intended to inform stakeholders about the Group’s annual results in social and environmental responsibility. The environmental indicators include the Group’s performance indicators with reference made, to a large extent, to the IPIECA reporting guidelines, updated in 2015.
The methodology may be adjusted to in particular due to the diversity of Total’s activities, the integration of newly acquired entities, lack of regulations or standardized international definitions, practical procedures for collecting data, or changes in methods.
Restatement of previous years’ published data, unless there is a specific statement, is now limited to changes of methodology.
Consolidation and internal control
The social, environmental, climate change-related and industrial safety data are consolidated and checked by each business unit and business segment, before being checked at Group level. Data pertaining to certain specific indicators are 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 Group and business levels, as well as in a sample of operational entities in and outside France, selected each year in line with their relative contribution to the Group, previous years’ results and a risk analysis. The auditors’ independence is defined by regulations and the professions’ Rules of Professional Conduct and/or an impartiality Committee.
DETAILS ON certain indicators
Social 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 Group’s social reporting.
Employees present: employees present are employees on the payroll of the consolidated scope, less employees who are not present, i.e., persons who are under suspended contract (sabbatical, business development leave, etc.), absent on long-term sick leave (more than six months), assigned to a company outside the Group, etc.
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.
SIR (Severity Injury Rate): average number of days lost per lost time injury.
Employees of contractors: any employee of a contractor working at a site that is part of the safety reporting scope or assigned by a transport 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 the API 754 (for downstream) and IOGP 456 (for upstream) standards.
Near miss: event which, under 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
Upstream hydrocarbons activities: the Group Upstream hydrocarbons activities include the oil and gas exploration and production activities of the Exploration & Production and the Integrated Gas, Renewables & Power segments. It does not include power generation facilities based on renewable sources or natural gas such as combined-cycle natural gas power plants.
Non-routine flaring: flaring other than routine flaring and safety flaring occurring primarily during occasional and intermittent events.
Routine flaring: flaring during normal production operations conducted in the absence of sufficient facilities or adequate geological conditions permitting the reinjection, on-site utilization or commercialization of produced gas (as defined by the working group of the Global Gas Flaring Reduction program within the framework 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 operations etc.).
Waste: all waste is counted, with the exception of drilling debris, mining cuttings and polluted soil at inactive sites, which are counted separately.
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.
Fresh water: water with salinity below 1.5 g/l.
GEEI (Group 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 by each business’s net primary energy consumption. The scope of the indicator relates to the “operated domain” of the Group’s upstream oil and gas activities and the Refining &Chemicals segment, with the exception of Hutchinson. It does not include power generation facilities based on renewable sources or natural gas such as combined-cycle natural gas power plants.
GHG: the six gases of the Kyoto protocol, which are 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 almost absent from the Group’s emissions or are considered as non-material, and are therefore no longer counted in 2018.
GHG based on the Group’s equity interest: greenhouse gases emitted by the sites and activities that are part of the Group’s “equity interest domain” (refer to paragraph “Scopes”). They are calculated on a pro rata basis according to the Group’s share in the entity or in the production (in the case of Group upstream hydrocarbons activities).
Scope 1 GHG emissions: direct emissions of greenhouse gases from sites or activities that are part of the scope of reporting on climate change-related indicators. Sites with GHG emissions and activities of less than 30 kt CO2e/y are excluded.
Scope 2 GHG emissions: indirect emissions attributable to brought-in energy (electricity, heat, steam), excluding purchased industrial gases (H2).
Scope 3 GHG emissions: other indirect emissions. The Group usually follows the oil & gas industry reporting guidelines published by IPIECA and which conform to the GHG Protocol methodologies. In this Registration Document, only item 11 of Scope 3 (use of sold products), which is the most significant, is reported. Emissions for this item are calculated based on sales of finished products for which the next stage is end use, in other words, combustion of the products to obtain energy. A stoichiometric emission factor is applied to these sales (oxidation of molecules to carbon dioxide) to obtain an emission volume.
Carbon intensity: this indicator measures the average GHG emissions of energy products used by the Group’s customers, from production in Total facilities to end use by customers. This indicator takes into account:
- in the numerator:
- the emissions connected to the production and conversion of energy products used by the customers on the basis of the Group’s average emission rates,
- the emissions connected to the use of sold products. For each product, stoichiometric emission factors(4) are applied to these sales to obtain an emission volume. Non-fuel use products (bitumen, lubricants, plastics, etc.) are not taken into account,
- negative emissions stored thanks to CCUS and natural carbon sinks;
- in the denominator: the quantity of energy sold, knowing that electricity is placed on an equal footing with fossil fuels by taking into account the average capacity factor and average efficiency ratio.
Operated oil & gas facilities: facilities operated in the Group Upstream hydrocarbons activities as well as in the Refining & Chemicals and Marketing & Services segments of the Group. It does not include power generation facilities based on renewable sources or natural gas such as combined-cycle natural gas power plants.
Oil spill preparedness:
- an oil spill scenario is deemed “important” as soon as its consequences are on a small scale and with limited impacts on the environment (orders of magnitude of several hundred meters of shores impacted, and several tons of hydrocarbons);
- 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 means, internal and external, to be implemented and, lastly, if it mentions elements to be taken into account to implement a follow-up of the environmental impacts of the pollution; and
- oil spill preparedness exercise: only exercises conducted on the basis of one of the scenarios identified in the oil spill preparedness plan and which are played out until the stage of equipment deployment are included for this indicator.
(4) The emission factors used are taken from a technical note from the CDP: Guidance methodology for estimation of scope 3 category 11 emissions for oil and gas companies.
One MAESTRO (Management and Expectations Standards Toward Robust Operations): Group’s operational Health, Safety, Environment and Societal reference framework. This reference framework applies to subsidiaries controlled exclusively by Total with the following exceptions: subsidiaries acquired in 2019, Hutchinson (RC segment), Zeeland Refinery (RC segment), Polyblend (RC segment), Sobegi (RC segment), Saft and subsidiaries acquired by the iGRP segment less than 3 years ago (these subsidiaries are in the process of being rolled out), TEP Barnett (iGRP segment) and Sunpower (iGRP segment).