It is around safety, core value of the Company, in accordance with the strictest standards and with regard to health that the operational measures and indicators used to manage the Company’s activities are based.

The activities of TotalEnergies involve health and safety risks for its employees, contractors, and residents in the vicinity of its industrial sites. Furthermore, certain products marketed by TotalEnergies may present risks for the health and safety of consumers.

In this context, TotalEnergies has therefore identified its main health and safety risks:

• risk of major industrial accident;
• risk of workplace accident;
• risk of transport accident;
• risk of damage to health at the workplace;
• risk of damage to the health and safety of consumers.

The risks and challenges relating to people’s health and safety are identified as part of a dynamic process that draws in particular on lessons learned, which are included in the HSE reference framework known as One MAESTRO (Management and Expectations Standards Toward Robust Operations).

More information on our health and safety for everyone challenges

TotalEnergies supports the objectives of the Paris Agreement, which calls for reducing greenhouse gas (GHG) emissions in the context of sustainable development and eradicating poverty, and which aims to hold the increase in the planet’s average temperature to well below 2°C above pre-industrial levels. To achieve these targets, the world’s energy systems need to be transformed. This dual challenge consisting of providing more energy to as many people as possible with less GHG emissions concerns society as a whole, with governments, investors, companies and consumers all playing an important role.

The risks and opportunities related to climate change are analyzed according to different timescales: short term (two years), medium term (until 2030) and long term (beyond 2030).

The identification and the impact of climate-related risks form an integral part of TotalEnergies’s global risk management processes. In particular, they cover

The identification and the impact of climate-related risks form an integral part of TotalEnergies’s global risk management processes. In particular, they cover

• the risks related to transition including those due to regulatory changes, such as the introduction of carbon taxes,
• as well as the physical risks due to the effects of climate change. The impact of these risks is analyzed for the Company’s assets and for investment projects (refer to point 3.1.1 of chapter 3).

To achieve carbon neutrality, the energy mix will need to change and in view of this, climate change also provides TotalEnergies with opportunities.

• In the coming decades, demand for electricity will grow faster than the global demand for energy⁽¹⁾, and the contribution of renewables and gas to the production of electricity will therefore play an essential role in the fight against climate change.
• Electricity alone will not be sufficient to meet all needs, particularly those connected to transportation.
• Gas and sustainable biofuels will be attractive and credible alternatives to conventional fuels and the Company intends to develop them.
• The development of gas production is accompanied by measures to control methane and CO₂ emissions (Scope 1+2). This development could be accompanied by an increasing share of biogas. The development of hydrogen could also contribute to meeting energy demand.
• Helping customers improve their energy efficiency also offers opportunities and forms part of a trend that will be accelerated by digital technology. TotalEnergies wants to be innovative and bring them new product and service offerings. The Company aims to develop this approach for industrial and mobility applications.
• In addition, ecosystems, and forests in particular, store carbon naturally. Consequently, their conservation and the restoration of their role as carbon sinks are crucially important in the fight against global warming. TotalEnergies therefore intends to maintain its investment in the development of natural carbon sinks.
• Finally, certain sectors, such as cement and steel, could struggle to reduce their GHG emissions. They will therefore require carbon capture, utilization and storage (CCUS) technology. Consequently, the Company intends to step up the development of CCUS.

More information on our climate change-related challenges

(1) IEA, World Energy Outlook 2023.

The Company’s activities incur risks for the environment and nature, for which TotalEnergies has developed a structured management policy.

In this context, the Company has identified its main environmental risks:

• risk of accidental pollution,
• environmental risks that would arise in the event of a liquid, gas or solid discharge or unsustainable use of natural resources,
• risk of damage to biodiversity and nature by projects and operations, especially those located in sensitive natural environments,
• environmental risks associated with the production of final waste.

The risks and challenges relating to the environment and nature are identified as part of a dynamic process that draws on the Company’s expertise and lessons learned, which are incorporated in the HSE reference framework known as One MAESTRO (Management and Expectations Standards Toward Robust Operations).

More information on our challenges related to the environment and nature

Being a responsible player in the world of energy also means contributing to the well-being of people by being a benchmark as a responsible employer. This ambition primarily concerns employees, whose commitment and skills are the main drivers of the Company's long-term performance.

TotalEnergies has identified its main risks and challenges concerning human resources development:

• attracting and retaining talents throughout their diversity based on the key skills sought by the Company, while abiding by the principle of non-discrimination and equal opportunity,
• supporting talents in the context of changes in business lines and technologies and maintaining the employability of employees in the long term with a view to a just transition,
• ensuring a high level of commitment based on respect for each other, an inclusive corporate culture and improved quality of life at work.

More information on our commitment to the employees

The main challenges associated with the effects of the Company’s activities in terms of respect for human rights have been identified using the methodology set out in the United Nations Guiding Principles on business and human rights (UNGP) Reporting Framework relating to the “salient issues”, i.e., the human rights at risk of the most severe negative impact through the Company’s activities or business relationships.

On this basis, the Company identified six salient risks subdivided across three key areas:

• human rights in the workplace of TotalEnergies’ employees as well as of the employees of its suppliers and other business partners:
  • forced labor and child labor,
  • discrimination,
  • just and favorable conditions of work and safety.
• human rights and local communities:
  • access to land,
  • the right to health and an adequate standard of living.
• respect for human rights in security-related activities:
  • the risk of misuse of force.

More information on our human rights challenges

Fighting corruption

TotalEnergies is a major player in the energy sector, where public authorities regularly play a role and where the amounts invested may be very high. In addition, the Company is present in about 120 countries, some of which have a high perceived level of corruption according to the index drawn up by Transparency International. Aware that it is highly exposed to the risk of corruption, TotalEnergies applies a principle of zero tolerance.

Fighting tax evasion

With a presence in about 120 countries, the Company carries out its operations in a constantly changing environment and is subject to an increasingly complex set of tax regulations, which may raise risks related to their articulation and their interpretation.

In this context, TotalEnergies has developed a responsible tax approach based on clear principles of action and rigorous governance rules as set out in its tax policy statement, which is available to the public on the website of TotalEnergies.

More information on our challenges related to fighting corruption and tax evasion

Based on the values and principles formally set out in its Code of Conduct and Safety Health Environment Quality Charter, TotalEnergies strives to be an agent of positive change for society, and to contribute to its development through its societal actions.

At a national level, the Company’s activities generate value for the countries where it operates, and TotalEnergies intends to contribute to the development of economic opportunities for its host regions and communities. At a local level, the Company’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. Furthermore, in order to address society’s global challenges, the Company is committed to the public interest.

In this context, the Company has identified its main risks and opportunities with regard to creating and sharing value:

• fostering the economic development of the territories where the Company is present;
• managing societal challenges related to the Company’s activities;
• engaging in citizenship initiatives.

More information on our challenges related to value creation for host regions

TotalEnergies’ activities generate hundreds of thousands of direct and indirect jobs worldwide. Present in about 120 countries, the Company works with a network of over 100,000 suppliers of goods and services.

The activities of the Company's contractors and suppliers are likely to present the same risks as those associated with TotalEnergies' activities. The main risks relate basically to human rights in the workplace (forced labor, child labor, discrimination, decent work), health and safety and security, corruption, fraud, environment including climate, biodiversity, circular economy and responsible use of natural resources (water, forests).

The Company attaches particular importance to working with sustainable suppliers who respect both human rights and the environment, throughout its value chain.

More information on our supply chain challenges