Value creation for host regions
Value creation for host regions
In line with its ambition to become the responsible energy major and based on the values and principles formally set forth in its Code of Conduct and its Safety Health Environment Quality Charter, Total wants to be a positive change agent for society and bring its contribution through its societal actions.
At a national level, the Group’s activities generate value for the countries where it operates, and Total intends to contribute to the development of economic opportunities for its host regions and the communities. At a local level, the Group’s activities can be a source of opportunities for the people, but may also have an impact on the living conditions of local communities and residents. Finally, in order to address society’s global concerns, the Group is committed to public interest.
- fostering the economic development of the regions;
- managing societal challenges related to the Group’s activities;
- engaging in citizenship initiatives.
Fostering the economic development of the regions
RECRUITING LOCAL PEOPLE AND SUPPORTING THE CREATION OF BUSINESSES
In addition to contributing directly to job creation in the countries where the Group operates (refer to the “employment and social inclusion” section), the Group is committed to recruiting local people and subcontractors, if its operational imperatives so permit.
Each of the Group’s major industrial projects with high local content is part of an industrial strategy that aims to maximize the impact on the host country measured in terms of new jobs. This strategy is based on the analysis of all the local industrial and human capacities and the associated risks, resulting in a plan of specific actions. These action plans help to structure technical resources, in particular through training courses, which strengthen human skills, and supporting economic development by supporting SMEs and recruiting local people. For example, for the Kaombo project in Angola, in cooperation with Angola’s national oil company, Sonangol, Total required more than 21 million hours to be worked locally, which was above the initial objective of 13.5 million hours, to produce and assemble complex equipment. The equivalent of 2,600 jobs have been created (on average over 2.5 years) with a peak of over 4,000 jobs (excluding indirect jobs and new jobs created).
In addition, through the entrepreneurial contest, the Startupper of the Year Challenge, Total confirms its desire to support the socio-economic development of the countries worldwide where the Group is present. It contributes locally to the strengthening of the social fabric by helping the most innovative entrepreneurs to turn their projects into reality. Following the success of the first contest in 2015-2016 in 34 African countries, the 2018-2019 challenge was extended to 55 countries worldwide. With 13,100 projects submitted, it rewarded 165 young local entrepreneurs who launched a project or created a company within the last two years, irrespective of the segment of activity, and 55 female entrepreneurs were awarded a “Top Female Entrepreneur label ”.
During the second contest, six grand winners were invited to a week-long training session at the top Parisian incubators and to participate in Vivatech (Paris) and One Young World (London) – two international events relating to entrepreneurship. The third contest has been announced and is expected to take place in 2021-2022.
LEVERAGING THE REINDUSTRIALIZATION OF THE GROUP’S PLATFORMS
In France, the Group supports SMEs through its Total Développement Régional (TDR) subsidiary. TDR proposes various measures that contribute to creating and keeping jobs in the long term, such as financial support for the creation, development or takeover of SMEs in the form of loans, support for setting up industrial projects with actors in local development, or support for exports and international development. Between 2017 and 2019, loans were granted to more than 530 SME projects, amounting to a total of more than €30 million, and more than 11,000 jobs were supported.
Additionally, Total implements a specific approach to support the conversion of its industrial sites through two additional projects carried out at the same time:
- a project for the future is carried out by the sector concerned, taking into account an analysis on market developments. The objective is to adapt the industrial tool in order to make the Group’s industrial sites competitive over the long term; and
- a Voluntary Agreement for Economic and Social Development (CVDES) is implemented to support the site and its ecosystem (subcontractors, stakeholders, etc.) during this period of change.
On Carling’s industrial platform (France), following the shutdown of the second steam cracker in 2015, Total led a project for the future without any job losses and in keeping with its contractual commitments to its customers and partner companies. Total invested €190 million to develop new activities in the growing hydrocarbon resins (Cray Valley) and polymers markets. TDR managed a fund to support subcontractor companies. TDR also helped to set up industrial projects which benefit from a shared services offer and new governance implemented on the platform.
The CVDES relating to Carling’s site was ended in 2018 with a final commitment of €12 million in grants. TDR also committed to support these industrial projects until the effective start-up of the production units. In this way, Total confirms its responsibility towards the employment areas in which the Group operates as well as its commitment to maintain a strong and lasting industrial presence in the Lorraine region.
The conversion of the La Mède refinery (France), through an initial investment greater than €275 million, is underway with the start-up of the first French biorefinery and an Adblue(1) production workshop in July 2019. The site also has an 8 MW solar farm, which was commissioned in 2018, and a training center, OLEUM, which started up in 2017. This project has been carried out without any lay offs.
The CVDES signed for La Mède for 2016-2019 has been extended for 2020. TDR is supporting the subcontractors and putting the Group’s commitments into action. In 2018 and 2019, TDR also supported financially seven industrial projects and one industrial demonstrator to create 262 new jobs.
On the Lacq platform in France, a TDR unit, hosted by Sobegi, the platform’s controller, researches and examines third-party industrial projects that could join the platform. A working group comprising the Pau-Béarn chamber of commerce and industry, the Chemparc public interest group, the Lacq-Orthez district authority, Sobegi and TDR, is actively looking for investors in Europe and Asia, with the help of two expert consulting firms.
(1) Fuel additive intended for road transport and designed to lower nitrogen oxide (NOX) compound emissions.
Managing societal / society challenges related to the Group’s activities
Operational societal approach
The Group includes societal challenges when conducting its operations through its One MAESTRO reference framework (refer to the “people’s health and safety” section) and focuses in particular on managing relationships with stakeholders and local impacts. Guides, manuals, video tutorials and a community of practices, available on the Group intranet site and updated in 2019, help the subsidiaries to implement their operational societal approach, which is adapted to the specific local requirements of the regions and communities. The Group’s framework defines a structured process, the main stages of which are:
- the analysis of the challenges and local societal context;
- the development of a societal strategy integrated with operations; and
- implementing and monitoring societal actions and projects.
ANALYSIS OF THE CHALLENGES AND THE SOCIETAL CONTEXT
Prior to investment, acquisition and divestment decisions, the projects presented to the Group’s Risk Committee are assessed according to their societal potential risks. When a new industrial site is developed, an initial pre-project survey must be conducted in advance to identify any potentially affected stakeholders and to describe and assess the main socio-economic and cultural challenges in the impacted area. It is complemented by societal impact assessments that measure and analyze the impacts –actual and potential, positive and negative, direct and indirect, in the short, medium and long term– of the project. In 2019, eight assessments were conducted, seven by Exploration & Production and one by Integrated Gas Renewables and Power (Benin).
With respect to the East African Crude Oil Pipeline (EACOP) project in Uganda and Tanzania, and the project in Papua New Guinea, the impact assessments is carried out in accordance with national and international standards, in particular those of the International Finance Corporation (IFC) which are among the most stringent in terms of environmental and societal standards. In November 2019, the supervisory authority in Tanzania (the Ministry of the Environment) approved the final report of the ESIA for the EACOP project which started in January 2017.
In addition, the Group’s One MAESTRO framework provides an assessment of the local societal context of the subsidiaries (sensitivity of the socio-economic and cultural context, including human rights). This assessment must be updated at least every five years. It depends largely on dialogue with stakeholders: authorities, neighboring communities, local business players or civil society. One of the tools developed by Total is the internal Stakeholder Relationship Management (SRM+) methodology which was introduced in 2006 in most of the Group’s subsidiaries and gradually in those recently created or acquired.
DEVELOPMENT OF A SOCIETAL STRATEGY INTEGRATED WITH OPERATIONS
Every subsidiary pays close attention to local issues by defining short-term and long-term societal targets and its priority fields of action that take account of:
- the need to remain within the regulatory and contractual framework, as well as meeting the applicable international standards;
- the analysis of the challenges and the societal context in terms of risks, impacts and opportunities;
- the Group’s voluntary commitments on citizenship initiatives.
These targets are built into a structured operational action plan, based on three pillars:
- dialogue and involvement of local stakeholders;
- avoiding and reducing the societal impacts of the Group’s activities;
- taking initiatives to create a positive impact on neighboring local communities.
IMPLEMENTING AND MONITORING SOCIETAL ACTIONS AND PROJECTS
The societal teams reporting to HSE division and their local correspondents lend their expertise to the operational subsidiaries to implement the One MAESTRO framework. Societal aspects are included within the scope of the One MAESTRO audits that produce recommendations to reinforce the control of operations. Moreover, the subsidiaries must conduct an annual self-assessment of their societal initiative and an annual internal report to list the societal actions taken locally.
In addition to the global training covering all the HSE topics, specific training is given to managers and operational personnel in charge of societal matters, such as The basics of societal engineering (two sessions in 2019, with 30 participants), or advanced and specific training modules in the operations of Exploration & Production (two sessions in 2019, in Nigeria, with 20 trainees).
Local stakeholders engagement
Total sets up dialogue procedures based on the consultation and involvement of stakeholders in order to develop constructive and transparent relations with them.
The One MAESTRO framework provides that subsidiaries shall establish a structured and regular dialogue process with their stakeholders to inform and listen to them and take into account their concerns and expectations, to report on mitigation actions or compensation, to measure their satisfaction and to identify means of improving their societal policy. In the Refining & Chemicals segment, there are structures for dialogue with local stakeholders, such as the Community Advisory Panels in the United States or the special local commissions on some European platforms. The Marketing & Services segment has developed tools to engage stakeholders and which are adapted to the diversity of its businesses (oil terminals, filling sites, lubricant plants, road transport or service stations) which may easily be extended over large regions such as, for example, in South Africa or in China in 2019.
Total acknowledges the specificities of indigenous and tribal peoples (as referred to in International Labor Organization Convention No. 169) and has developed a Charter of Principles and Guidelines to be followed with these communities which may be affected by its activities. This charter encourages the use of experts in order to identify and understand these peoples’ expectations and specificities, consult them and contribute to their socio-economic development. This initiative is also consistent with the United Nations Guiding Principles on Business and Human Rights.
The approach to dialogue at Exploration & Production is managed in certain subsidiaries by local community liaison officers who speak the language and understand the customs. They play a decisive role in establishing a good relationship and paying special attention to listening to the most vulnerable populations (ethnic minorities, natives, women). In 2019, they conducted more than 2,800 meetings on the EACOP project, involving 50,000 people in 226 villages and 533 hamlets. Different communication tools and media are used to disseminate information on the subsidiaries’ operational activities: public meetings, letters of information or posters in villages.
Managing the societal impact of the Group’s activities
AVOID, REDUCE AND COMPENSATE
Following the analysis of the challenges and the societal context, various actions have been taken by subsidiaries to minimize the impacts. For examples in 2019:
Impacts for local communities on access to land and maritime space
In Papua New Guinea, an environmental and societal impact assessment for the Upstream part of the Papua LNG project was submitted, in accordance with regulations, the IFC standards and the Group’s framework, to the Conservation and Environment Protection Authority (CEPA) after a review by a panel of external experts. Particular attention was given to issues relating to access to land and maritime space.
Impacts on cultural and religious practices and heritage
Archaeological heritage is taken into account before any type of work in Papua New Guinea. Archaeological and cultural heritage assessments were carried out before the geotechnical and geophysical studies and preparatory works in 2019. These studies are always submitted for approval to the National Museum and Art Gallery. As part of the EACOP project in Tanzania, a team of archaeologists from the University of Dar es Salam assisted the teams throughout the geophysical and geotechnical acquisitions, giving rise to adjustments in the acquisition zones and unexpected discoveries of pottery shards and flint, which was promising for increasing knowledge in these areas.
HANDLING GRIEVANCES FROM LOCAL COMMUNITIES
In accordance with the One MAESTRO framework, the Group’s operational entities are implementing procedures to handle grievances in order to provide residents and local communities with a preferential channel to voice their problems and grievances. Handling these grievances locally makes it possible to offer a response to anyone who feels that they have suffered damage and to improve internal processes in order to reduce nuisances or impacts that may be caused by the operations. Within the One MAESTRO perimeter (refer to the “reporting scopes and method” section), 100% of Refining & Chemicals sites have an operational grievance mechanism. Deployment is gradual in the Group’s other segments.
In 2019, the Exploration & Production segment carried out continuous improvement initiatives, for example, in Bolivia, to reduce the grievance settlement period to less than 30 days for simple cases. In the Refining & Chemicals segment, residents joined forces in the search for solutions to control the impacts of activities. At Marketing & Services, a kit has been developed to help the operational subsidiaries to set up a dedicated management that is separate from the business claims.
Taking socio-economic initiatives in favor of local communities
First and foremost, the local projects address the issues of development and solidarity identified thanks to consultations with local communities and favor cooperation and skills development.
PROVIDING ACCESS TO BASIC NEEDS (ACCESS TO ENERGY, WATER, HEALTH, ETC.)
The Integrated Gas, Renewables & Power branch is developing an access-to-energy offer based on clean and affordable solutions. Thanks to the involvement of 38 of the Group’s subsidiaries, with 37,000 individuals receiving training in solutions and sales, 14.6 million people were able to benefit from the program at the end of November 2019.
First launched in 2011 in 4 pilot countries, Total’s solar solutions for access to energy were distributed in 38 countries in 2019. In 2019, 3.3 million lamps and solar kits – including Total’s new SUNSHINE range launched in 2018 – were sold in cumulative, helping improve the everyday lives of 14.6 million people. The distribution channels used are both Total’s traditional networks (service stations) and “last mile” networks built with local partners to bring these solutions to isolated areas.
In addition, in 2019, around 15 incubation projects were developed with start-ups in the nano-grid, mini-grid, recycling and wind turbine sectors. More than 20 business partnerships were deployed in the field, with organizations ranging from NGOs and development agencies, to professional customers (including with distributors and major Total customers) and international organizations.
The goal of the program is to impact 25 million people by 2025.
In France, Total is pursuing its actions against fuel poverty, by helping low-income households to renovate thermally their homes alongside the French government and other energy suppliers in the Habiter Mieux (Living Better) program (€31.5 million in 2019), as well as the initiatives for social housing (€4.6 million in 2019).
In 2019, Exploration & Production made several contributions to human development. Literacy courses were given to local inhabitants of Djeno in the Republic of Congo to enable them to obtain a basic level in French and facilitate access to jobs, particularly in the neighboring oil terminal operated by Total. Since the launch, 436 people (around 60% of women) have already benefited from these courses. In Papua New Guinea, a national identification program was set up in partnership with the authorities (PNG Civil & Identity Registry). The first campaign has made it possible for 7,500 people to be registered and who will be issued identity cards.
CONTRIBUTING TO THE DEVELOPMENT OF LOCAL COMMUNITIES
At Exploration & Production in Nigeria, the OML 58 project supports the development of micro-sized agricultural enterprises: in 2019, 625 fish farmers and 300 poultry farmers received a donation of animals and food to increase their production and, as a result, pass the poverty line themselves.
In Bolivia, Total supports, in partnership with Adapicruz, the honey producers association, and the NGO SNV development, training initiatives among 30 producers, the supply of equipment and promotion of this economic activity among young people.
Engaging in citizenship initiatives: the Total Foundation program
In addition to the solutions proposed by Total in response to the direct expectations of the people and related to its operations, the Group wants to contribute to the local actions in the countries where it operates by addressing global societal challenges.
The Total Foundation program
In the face of growing inequality and environmental challenges, the Group’s wish has been to strengthen its public interest initiatives and efforts in the development of the regions in which it is present by favoring in particular actions that benefit young people first. In 2017, it has therefore decided to structure its actions within the framework of the Total Foundation program, which covers the citizenship initiatives undertaken every day worldwide by the Group’s subsidiaries and by its corporate foundation.
The Total Foundation program focuses on four areas of action: youth education and inclusion, road safety, forests and climate, cultural dialogue and heritage.
Through the Total Foundation program, the Group and its corporate foundation are partnering with all the stakeholders of a region (associations, government authorities, businesses, experts, etc.) to propose solutions adapted to the local needs. They want to broaden the scope for action beyond financial support and develop new sustainable models by experimenting through social innovation projects. Their involvement also includes advising and supporting partners in their development and skills sponsorship. Since 2018, the Action! program, for example, allows Total employees to spend up to three days a year of their working time on solidarity projects. At the end of 2019, Action! had been implemented in 25 countries.
The Total Foundation program contributes in this way to the United Nations Sustainable Development Goals, particularly in reducing inequalities (SDG 10), youth inclusion (SDG 4) and collective action (SDG 17).
Four areas of action
The Total Foundation program is structured around four societal challenges, in line with the Group’s history, values and businesses.
YOUTH EDUCATION AND INCLUSION
The professional inclusion of young people is a real challenge on all continents. The first area of the Total Foundation program aims to empower young people, particularly socially at-risk young people, by means of support and guidance, training, particularly in industry, and insertion in the workplace.
In this context, and by way of example, in 2019, the first stone of L’INDUSTREET(2), a campus for the industry of tomorrow, was laid in Stains in the Paris region. This new industry professions training center will provide free training and offer innovative teaching to young people who have not found their place in the traditional education system. Over time, it will welcome 400 young people between 18 and 25 years old.
The Fondation d’entreprise Total continues to support the Ecoles de Production that enable young people to learn a trade using the “learning by doing” teaching method. As a result, five new schools were opened in 2019 with the Fondation d’entreprise Total support.
Total also supports four Eiffel high schools in Angola which provide free, quality teaching to young people in socially vulnerable situations.
(2) Website in French only
Road accidents are the leading cause of death among young people worldwide. The Total Foundation program aims to take action for safer mobility by educating youth, training and raising drivers’ awareness and supporting road safety policies.
In this context, for example, in 2019, the Fondation d’entreprise Total continued the deployment of the VIA youth awareness program through interactive and innovative methods, in Cameroon, France, India, Romania and Myanmar.
It has partnered with the NGO YOURS to organize the World Youth Assembly for Road Safety in February 2020 in Stockholm in order to contribute to target 3.6 of the SDGs: halving the number of road accident victims.
The Fondation d’entreprise Total also signed a partnership agreement with the International Bank for Reconstruction and Development (IBRD) to make its financial contribution to the Global Road Safety Facility, the objective of which is to develop the skills of authorities on the collection and analysis of road data as part of the creation of the African Road Safety Observatory.
FORESTS AND CLIMATE
Global warming is a major challenge for humanity, biodiversity and the socio-economic balance. The Total Foundation program aims to take action to protect sensitive ecosystems through the natural storage of carbon, improve biodiversity and the quality of life of local communities, and raise awareness of young people in environmental conservation.
In this context, for example, the partnerships set up in 2018 by the Fondation d’entreprise Total continued in 2019 in France, with the National Forests Office or with the School and Nature Network. In 2019, new partnerships were established for the preservation and conservation of sensitive ecosystems:
- with the AGROPOLIS Foundation to identify sustainable agricultural practices in France, Senegal, Kenya and Zimbabwe, in order to improve soil fertility and identify sustainable agricultural practices (food security challenges) but also to promote carbon storage in soils (climate change issues);
- with the Tessékéré International Man-Environment Observatory (OHMI) to support the Great Green Wall program (fight against desertification in the sub-Sahelian region) through research and planting in Senegal and Burkina Faso.
CULTURAL DIALOGUE AND HERITAGE
Cultural diversity is a driver of peace and prosperity. The Total Foundation program aims to promote heritage and the cultural openness of young people through actions to conserve heritage, to support contemporary creation by young people and to encourage access to artistic and cultural education.
In this context, and by way of example, in 2019, Total pledged, within the framework of the historic partnership between the Fondation d’entreprise Total and the Fondation du Patrimoine, €100 million to the reconstruction of Notre-Dame Cathedral in Paris.
The Fondation d’entreprise Total supports initiatives to combat social reproduction mechanisms, such as the Paris Philharmonic Orchestra’s “Démos” program. It also supports events promoting contemporary creation locally such as Gigantisme in Dunkirk, the Contemporary Art Biennale in Lyon or Traversées in Poitiers.