Reducing scope 3 emissions, together with society

TotalEnergies has set itself the target that by 2030 its global Scope 3 emissions, linked to the use by its customers of the energy products used, will be below 2015 levels, while over the same period the Company plans to produce and sell 30% more energy products, in particular from growth in sales of electricity and liquified natural gas.

Summary

The Scope 3 emissions of an integrated multi-energy Company

To prepare for the decline in demand for oil between now and the end of the decade, the Company has embarked on a voluntary strategy of adapting its downstream activities of refining and distributing petroleum products to align them with its level of oil production.

The Company has therefore committed to a new target by 2030: to reduce the Scope 3 emissions from petroleum products sold by more than 30% between 2015 and 2030.​​​​​

The sharp rise in sales of electricity (a twentyfold increase over the 2015-2030 period) will make it possible to decarbonize the Company’s energy mix without adding indirect Scope 3 emissions.

Gas is a transition energy that allows customers to substitute it for coal that emits more CO2 and which TotalEnergies does not produce or sell (TotalEnergies voluntarily withdrew from the coal market in 2016). TotalEnergies will therefore double its sales of LNG over the 2019-2030 period.

Reducing sales of petroleum products by more than 30% and boosting sales of biofuels to three times their current level will enable us to reduce Scope 3 emissions in absolute terms over the 2015-2030 period.

This evolution of Scope 3 varies by region, in line with evolving global energy demands:

  • In support of the European Union’s ambitions on the path to carbon neutrality and in light of Europe’s weight in its Scope 3 emissions in 2015 (256 Mt out of 410 Mt), the Company has itself set a specific target of reducing its Scope 1+2+3 emissions in Europe by 30% in absolute terms over the same period; the reduction in sales of petroleum products will focus particularly on Europe.
  • At the same time, the Company intends to provide people in developing countries with the energy they need to raise their standard of living. It is therefore increasing its energy supplies in these regions of the world with a priority on natural gas and renewable energies.

Mobility: together with our customers

TotalEnergies is actively working to make carbon neutrality a shared ambition with its customers. The main lever for contributing effectively to the energy transition is to gradually change the form in which our customers will consume energy.

With that in mind, the Company is pursuing a marketing strategy focused on the least carbon-intensive products and scaling back its supply for certain applications for which competitive low-carbon alternatives are available. Transportation generates approximately 17% of global GHG emissions.

Our belief is that the mobility of the future does not call for a single solution, but an array of complementary solutions.

Road transportation

Road transportation undoubtedly offers a wider range of solutions for decarbonization than any other form of transport. Our strategy is to establish operations in four major new types of road mobility:

1/ Winning recognition as a major force in electric mobility

As their driving range increases, electric vehicles (EVs) offer a future-oriented solution, accounting for 9% of total vehicle sales in 2021. We are acting on two key links in this value chain to accelerate their adoption by our customers:

The deployment of charging infrastructure

  • 150,000 charging points are planned by 2025 worldwide.
  •  300 service stations on motorways and main roads and 600 urban service stations with high power chargers (HPC) are planned by 2030 to support e-mobility travel in Europe. This works out to one HPC every 150 km, for an optimal network on long-distance journeys.
  • TotalEnergies is transforming and adapting its presence in cities by developing an e-mobility network in Europe and Asia.

Production of efficient and affordable batteries

Automotive Cells Company (ACC), a joint venture founded by TotalEnergies and Stellantis in 2020, is set to emerge as a global player in the development and manufacture of automotive batteries from 2023.

With Saft, TotalEnergies is putting forward its expertise in R&D. The batteries produced will power nearly one million EVs a year, or 10% of the European market. Mercedes-Benz joined ACC in September 2021. This is a major investment to contribute to the development of electric vehicles in Europe.

A goal of targeting major cities and agglomerations with 150,000 charge points (1) operated worldwide by 2025

2/ Expanding the distribution of biofuels

Internal combustion vehicles still represent, at the end of 2021, more than 98% of the global stock of land vehicles in circulation. Sustainable biofuels can reduce those vehicles’ CO2 emissions.

In 2021, TotalEnergies distributed 3 Mt of sustainable biofuels* worldwide. Public policies aimed at carbon neutrality support the demand for these renewable products, especially in Europe. We will support this development and aim to sell 7 to 8 Mt in 2025.

3/Supporting our customers’ energy transition thanks to NGV

Natural gas for vehicles (NGV), distributed in the form of compressed natural gas (CNG) or liquefied natural gas (LNG), offers a transitional pathway for reducing CO2 emissions. This fuel is now available at 600 service stations in our global network.

In February 2021, TotalEnergies inaugurated France’s largest NGV and bio-NGV station in Gennevilliers.

4/ Promoting low-carbon solutions for heavy goods vehicles

Truck manufacturers are developing electric vehicles for daily journeys of less than 500 km and are also working on very high-power batteries that would extend these vehicles’ driving range.

TotalEnergies is supporting that process by expanding its network of high-power charging stations. Its goal is to have a charging station every 150 km throughout Western Europe, and charging solutions directly at trucking professionals’ sites.

In addition, several truck manufacturers are looking at hydrogen as an attractive alternative for longer daily journeys. In 2021, TotalEnergies entered into a partnership with Daimler Trucks dedicated to hydrogen infrastructure for heavy goods vehicles in France, Germany and Benelux.

Shipping

The maritime sector accounts for 90% of all goods transported and 3% of global CO2 emissions. Although heavy fuel oil remains the most common fuel for ship propulsion, the use of LNG, a transition energy, can reduce CO2 emissions by 20%.

TotalEnergies is working with major players in maritime transportation to define the most appropriate fuels for achieving their decarbonization roadmaps.

Aviation

TotalEnergies is developing sustainable aviation fuels (SAFs) produced from waste and residues sourced from the circular economy (animal fats, used cooking oils, etc.) as well as “e-jets”, synthetic fuels for aviation. SAFs will be able to substantially reduce CO2 emissions from air transport.

The Company is involved in numerous SAF production and marketing initiatives in partnership with companies in the aviation industry. Up to 50% of these biofuels can now be incorporated into kerosene without any need to modify existing logistics infrastructure, aircraft or engines.

With the start of production at its La Mède refinery in 2021 and Normandy in 2022, TotalEnergies is in a position to meet customer demand and the requirements of French legislation, which calls for aircraft to use at least 1% of sustainable aviation biofuels in SAF from January 1, 2022.

2021 highlights

Supplying LNG to cruise ships and maritime transport

Joining alliances to decarbonize the shipping industry

A pilot flight powered by biofuels

  • May 2021: Air France-KLM, TotalEnergies, Groupe ADP and Airbus join forces to conduct the first long-haul flight with a 16% blend of SAF produced from cooking oil. The flight from Paris to Montreal reduced CO2 emissions by 20 tons compared to conventional jet fuel

Residential, tertiary and industrial uses

By the end of 2021, TotalEnergies sold electricity and natural gas to nine million residential and commercial customers in Europe. TotalEnergies is aiming for nearly 13 million sites (B2B and B2C) across all segments in 2025.

The Company favors electricity from renewable sources and has developed a range of differentiated offers for individual and business customers.

For individuals in Europe

TotalEnergies offers suitable solutions with its Green renewable power service, with rates that are locked in for one year, alongside traditional offers. It also helps consumers to save energy.

For businesses

TotalEnergies is implementing corporate power purchase agreements (CPPAs) for renewable energy, which accelerated in 2021. The Company also offers customers the option of adding solar power to their sites. 

In France, TotalEnergies is the market leader in solar power on buildings, having been awarded projects totaling more than 250 MW in the French Energy Regulatory Commission’s CRE 4 call for tenders since 2017.

Developing a range of CO2 storage services

Under the scenarios prepared by the IEA, the volume of CO2 captured and stored using carbon capture and storage (CCS) processes could total 5 to 7 GtCO2 annually by 2050, compared to just 40 Mt today. 

Developing that business therefore represents a major challenge for the decades ahead in terms of achieving carbon neutrality by 2050.

Our CCS projects are helping to reduce its own emissions but, via additional available capacity, could also make it possible to develop a range of transport and storage services for manufacturers committed to reducing their emissions.

The North Sea is ideal setting for such projects, offering significant storage potential close to major industrial centers. TotalEnergies is involved in several large projects there.

Our goal is to provide our customers with storage capacity of more than 10 MtCO2/year by 2030, with the ambition of reaching a capacity of more than 50 MtCO2/year by 2050.

One B2B Solutions

A dedicated marketing organization to help our B2B customers in decarbonizing their energy consumption. Our B2B industrial and commercial customers are increasingly expressing the need to be supported in choosing energy sources that are aligned with their own efforts to decarbonize. Our Company has a major competitive advantage to respond to these requests thanks to the broad spectrum of energies and products we can offer.

To assist these customers, TotalEnergies is setting up a dedicated marketing organization in 2022 called One B2B Solutions. The new entity is responsible for marketing our offers in ten market segments with the greatest potential and provides overall management of Key Accounts.

Together with our partners

Navigating the energy transition and capping global warming are global challenges. TotalEnergies can only meet those only by actively enlisting its partners, particularly through its involvement with public authorities and professional associations.

Support for the “Fit for 55” package

TotalEnergies supports the pledges made by nations worldwide to combat global warming as part of the Paris Agreement. 

In Europe, TotalEnergies supports the “Fit for 55” package, and particularly some key components that are aligned with our strategy and positions:

  • Broader use of carbon pricing
  • Massive expansion of renewable energies
  • The establishment of infrastructure (charging stations, hydrogen)
  • The development of low-carbon and renewable fuels for the transportation industry

In support of those commitments by the European Commission, we have set a target in Europe of reducing Scope 1+2+3 emissions by 30% by 2030.

Mobilization of industry organizations

TotalEnergies is a member of many industry associations and has published a list of its affiliations since 2016. The Company cooperates with these associations most often on technical matters, but some also take public stances on climate. We ensure that these associations of which we are a member hold positions aligned with our own, and regularly assess this alignment on climate issues.

Since 2019, TotalEnergies has been conducting an annual assessment of the climate-related public positions of the main professional associations of which it is a member. Their alignment with TotalEnergies is assessed against the six principles listed in our Advocacy Directive.

TotalEnergies also participates in associations and initiatives devoted specifically to the fight against global warming.

The Oil & Gas Climate Initiative (OGCI)

In 2014, we helped launch the Oil & Gas Climate Initiative (OGCI), a global partnership within the sector.

This initiative brings together 12 major national and international energy players to develop solutions for a sustainable, low-carbon future. In 2021, all of its members, which collectively account for more than one third of the world’s hydrocarbon production, embarked on a new strategy to achieve Scope 1+2 carbon neutrality by 2050.

In addition, the OGCI Climate Investments fund, launched in 2017 and endowed with more than a billion dollars over 10 years, provides funding to tech start-ups connected with the energy transition. We are also involved in other international initiatives involving the private and public sectors: 

  • for stopping the routine flaring of gases associated with oil production within the World Bank’s “Zero Routine Flaring by 2030” initiative;
  • for enhanced transparency, taking into account the recommendations of the G20 Financial Stability Board on climate, and of the Task Force on Climate-related Financial Disclosures (TCFD), or the Climate Action 100+ investor consortium;
  • for the development of new start-ups in the energy transition, since 2017 within the Breakthrough Energy Coalition (BEC), created by Bill Gates in 2015, and since 2016 within the associated fund Breakthrough Energy Ventures endowed with a billion dollars;
  • for reducing methane emissions, since 2014 within the Oil & Gas Methane Partnership (OGMP) of the United Nations Development Program.

Review of affiliations based on six key principles

  • Scientific position: TotalEnergies recognizes the link established by science between human activities, in particular the use of fossil fuels, and climate change
  • The Paris Agreement: TotalEnergies recognizes the Paris Agreement as a major step forward in the fight against global warming and supports the initiatives of the countries participating to achieve the objectives of this agreement.
  • Carbon pricing: TotalEnergies supports the implementation of carbon pricing.
  • The development of renewable energies: TotalEnergies supports policies, initiatives and technologies aimed at promoting the development of renewable energies and sustainable bioenergies (biofuels, biogas) as well as energies and technologies aimed at decarbonizing industrial processes and transport, such as hydrogen, carbon storage or electric vehicles.
  • The role of natural gas: TotalEnergies promotes the role of natural gas as a “transition fuel”, particularly as a replacement for coal. TotalEnergies supports policies aimed at measuring and reducing methane emissions to move towards the ambition of zero methane emissions. 
  • Carbon offsetting: TotalEnergies promotes an approach consisting first in the reduction of GHG emissions – by avoiding and then reducing emissions using the best available technologies – and then offsetting residual emissions. The Company supports carbon compensation mechanisms, which are necessary to achieve carbon neutraility, when they are part of organized and certified markets assuring the quality and sustainability of the carbon credits.

Support for carbon pricing

Carbon pricing is a major tool for achieving carbon neutrality. For more than a decade, we have been advocating for the adoption of carbon pricing, and we apply an internal carbon price when evaluating our own projects.

By integrating an energy source’s carbon content into its price, carbon pricing makes the most emission-intensive energies more expensive. In particular, it encourages all actors to accelerate the shift from coal to renewable energies and natural gas for electricity production. Over the long term, it also offers a way to channel investment towards research in low-carbon technologies and in the capture and storage of CO2.

Since 2014, the Company has been supporting a range of international initiatives that call for the implementation of regulatory mechanisms adapted to local conditions. TotalEnergies is a founding member of the Climate Leadership Council (CLC), which promotes a balanced approach to carbon pricing in the United States in which the revenues would be redistributed to the American people in the form of a carbon dividend. TotalEnergies also supports the World Bank’s Carbon Pricing Leadership Coalition (CPLC).