TotalEnergies

Our governance

A committed Board of Directors

TotalEnergies' governance is based on a committed Board of Directors that oversees the Company's strategy and operations, including its transition strategy and sustainable development approach.

An Executive Committee entrusted with implementing the Company's transition strategy

The Executive Committee is responsible for implementing the Company's transition strategy, which is anchored on two pillars: Oil & Gas (notably LNG) and electricity, the energy at the heart of the transition.

An operational structure built around the Company's business segments

The Company's operational structure is organized around its business segments to support the implementation of its multi-energy strategy and sustainable development objectives.

Board composition and diversity

• 22.2% of Executive Committee members and 33.3% of the G70 are women in 2024
• 29.5% of senior executives are women and 25.8% of senior managers are women in 2024
• 38.6% of senior executives are non-French nationals and 36.4% of senior managers are non-French nationals in 2024

Targets

• Women to account for 30% of Executive Committee members and of the G70 by 2025
• Women to account for 30% of senior executives by 2025 and 30% of senior managers by 2025
• Non-French nationals to account for 45% of senior executives and non-French nationals to account for 40% of senior managers

Risk management system

TotalEnergies has implemented a comprehensive risk management system to address sustainability-related risks and opportunities. The Company's risk management framework covers:

Climate-related risks and opportunities

• Physical risks: Managing impacts from climate change on operations
• Transition risks: Addressing risks from the energy transition
• Climate opportunities: Capitalizing on opportunities in low-carbon energies

Operational risk management

• Safety and environmental risks: Comprehensive systems to prevent incidents and minimize environmental impact
• Regulatory compliance: Monitoring evolving regulations related to sustainability
• Supply chain risks: Managing sustainability risks across the value chain

Financial risk assessment

• Climate scenario analysis: Using IEA scenarios to assess business resilience
• Capital allocation: Incorporating sustainability factors into investment decisions
• Performance monitoring: Regular tracking of sustainability metrics and targets

Our business model

Integrated value chain

TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas, biogas and low-carbon hydrogen, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.

A two-pillar multi-energy strategy

TotalEnergies reaffirms the relevance of its balanced integrated multi-energy strategy considering the developments in the oil, gas and electricity markets. Anchored on two pillars, Oil & Gas, notably LNG, and electricity, the energy at the heart of the transition, the Company plans to increase its energy production (hydrocarbons and electricity) by +4% per year between 2024 and 2030.

Resources and ecosystem

Proven expertise:

• 102,887 employees
• Close to 170 nationalities
• More than 513,000 days of training
• More than 400 talent developers

Innovation:

• R&D budget: $805 million
• 15 R&D centers worldwide
• More than 250 patent applications in 2024

Industrial and commercial assets:

• 26.0 GW of gross installed renewable power generation capacities
• Close to 78,000 operated and supervised EV charging points
• Proved reserves of 11.1 Bboe and hydrocarbon production of 2,434 kboe/d
• 14 refineries including 1 biorefinery (La Mède)
• More than 13,000 service stations in approximately 60 countries

Financial strength:

• Cash flow from operations excluding working capital (CFFO): $29.9 billion
• Net investments: $17.8 billion
• Gearing ratio (excluding leases): 8.3%

Shared value creation

For employees:

• $9.5 billion payroll (including social security charges)
• More than €220 million for training
• 92.7% of employees on permanent contracts

For customers:

• Sales: $215 billion
• 3rd largest LNG player worldwide with 39.8 Mt of LNG sold in 2024
• 41.1 TWh of net power production, including 26 TWh from renewable sources

For shareholders:

• $7.7 billion distributed as dividends
• More than 1.8 million individual shareholders

For communities:

• $10,212 million in income tax
• $11,783 million in production taxes paid by EP activities
• $18,940 million in excise taxes

Geographic reach

Present in about 120 countries with hydrocarbon exploration and production in about 50 countries.

Interests and views of stakeholders

An ongoing dialogue with our stakeholders

TotalEnergies maintains active engagement with various stakeholder groups to understand their interests and concerns regarding the Company's strategy and operations.

Key stakeholder groups

Employees:

• More than 100,000 employees across nearly 170 nationalities
• More than 70% of employees are shareholders
• Ongoing dialogue through training programs and development initiatives

Shareholders:

• More than 1.8 million individual shareholders
• Approximately 76.5% institutional shareholders
• Regular engagement through investor relations activities

Customers:

• 6.1 million BtB and BtC client sites for gas and power
• Global customer base across multiple energy products
• TotalEnergies OneB2B Solutions assists large companies in their transition

Communities:

• Present in about 120 countries
• Global integrated local development approach (in-country value)
• Supporting social and economic development in host countries

Suppliers:

• Network of more than 100,000 suppliers
• $31 billion worth of purchases supporting hundreds of thousands of jobs

Stakeholder engagement on sustainability

• More than 27,000 employees participated in workshops in 2022 to set up indicators related to SDGs
• In 2023, nearly 250 of the Company's most important sites defined local action plans with objectives to achieve by 2025
• More than 400 large companies are accompanied in their transition through 850 potential projects worldwide
• About 7 TWh/year of low-carbon energy sales have been committed to industries by 2030

Material impacts, risks and opportunities and their interaction with strategy and business model

Climate-related impacts, risks and opportunities

Physical risks:

• Climate change impacts on operations and facilities
• Weather variability affecting renewable energy production

Transition risks:

• Regulatory changes related to carbon emissions
• Shifting energy demand patterns
• Technology disruption in energy markets

Climate opportunities:

• Growing demand for renewable electricity
• LNG as transition fuel replacing coal
• Low-carbon solutions for industrial customers

Strategic response

Two-pillar strategy:

1. Oil & Gas pillar: Focus on low-cost, low-emission assets
2. Electricity pillar: Integrated renewable and flexible power generation

2030 Objectives:

• Increase energy production by +4% per year between 2024 and 2030
• Electricity to account for nearly 20% of hydrocarbon equivalent production by 2030
• Reduce net Scope 1+2 emissions by 40% compared to 2015
• Reduce lifecycle carbon intensity of energy products sold by 25% by 2030

Environmental impacts and responses

Water and marine resources:

• Fresh water withdrawal: 92 Mm³ (ESRS perimeter)
• Implementation of water management strategies

Biodiversity:

• Nature-based carbon sink projects
• Environmental impact assessments for new projects

Pollution:

• Methane emissions reduced by 55% between 2020 and 2024
• Elimination of routine flaring initiatives

Social impacts

Own workforce:

• 102,887 employees across about 120 countries
• Focus on safety, diversity, and professional development
• Total recordable injury rate of 0.55 in 2024

Communities:

• Significant tax contributions supporting local development
• Global integrated local development approach
• Energy access initiatives supporting human development

Description of the processes to identify and assess material impacts, risks and opportunities

Climate risk assessment process

TotalEnergies conducts comprehensive climate scenario analysis using IEA scenarios to assess the resilience of its business model and identify material climate-related risks and opportunities.

Scenario analysis framework:

• STEPS (Stated Policies Scenario - 2.4°C)
• APS (Announced Pledges Scenario - 1.7°C)
• NZE (Net Zero Emissions Scenario - 1.5°C)

Materiality assessment methodology

Climate impact assessment:

• Scope 1+2 emissions from operated facilities
• Scope 3 emissions from use of sold products
• Lifecycle carbon intensity of energy products sold
• Physical climate risks to operations

Environmental impact assessment:

• Water consumption and discharge impacts
• Biodiversity and ecosystem effects
• Air, water, and soil pollution
• Waste generation and circular economy opportunities

Social impact assessment:

• Workforce safety and health
• Community impacts from operations
• Human rights considerations
• Supply chain worker conditions

Risk identification process

Operational risk assessment:

• Regular safety and environmental risk assessments at all facilities
• Methane detection and monitoring programs
• Energy efficiency audits and improvement plans

Strategic risk evaluation:

• Energy transition scenario planning
• Market demand analysis for different energy products
• Regulatory change monitoring
• Technology disruption assessment

Opportunity identification

Market opportunities:

• Growing electricity demand from decarbonization
• LNG as transition fuel replacing coal
• Industrial customer decarbonization needs

Technology opportunities:

• Renewable energy cost reductions
• Energy storage solutions
• Carbon capture and storage potential
• Low-carbon hydrogen production

Integration with business strategy

The materiality assessment directly informs the Company's two-pillar strategy and 2030 objectives, with regular review and updates to ensure alignment with evolving risks and opportunities.

Disclosure requirements in ESRS covered by the undertaking's sustainability statement

TotalEnergies' sustainability reporting covers material topics across all ESRS categories:

ESRS 2 - General Disclosures

• Governance structure and oversight of sustainability
• Strategy and business model integration with sustainability
• Materiality assessment process and results
• Risk management systems for sustainability topics

E1 - Climate Change

• Transition plan for climate change mitigation
• Climate-related policies and targets
• GHG emissions (Scope 1, 2, 3) reporting
• Energy consumption and renewable energy mix
• Climate scenario analysis and financial effects

E2 - Pollution

• Air emissions including methane
• Water and soil pollution prevention
• Waste management and circular economy initiatives

E3 - Water and Marine Resources

• Water consumption: 92 Mm³ (ESRS perimeter)
• Water management policies and targets

E4 - Biodiversity and Ecosystems

• Nature-based carbon sink projects
• Biodiversity impact assessments for operations
• Ecosystem restoration initiatives

E5 - Resource Use and Circular Economy

• Material flow accounting
• Circular economy initiatives in refining and chemicals
• Waste reduction and recycling programs

S1 - Own Workforce

• Employee characteristics: 102,887 employees across 170 nationalities
• Diversity metrics and targets
• Safety performance: Total recordable injury rate of 0.55
• Training and development programs

S2 - Workers in the Value Chain

• Supplier network management: 100,000+ suppliers
• Supply chain sustainability requirements

S3 - Affected Communities

• Community engagement and development programs
• Local content and in-country value creation
• Tax contributions: $43 billion across various taxes

S4 - Consumers and End-Users

• Customer assistance in decarbonization through OneB2B Solutions
• Product safety and quality management
• Electric mobility infrastructure development

G1 - Business Conduct

• Anti-corruption and business ethics policies
• Tax transparency and strategy
• Political engagement and lobbying activities

The Company's sustainability statement provides detailed disclosures on all material aspects of these topics as identified through its materiality assessment process.

Transition plan for climate change mitigation

Our transition strategy

TotalEnergies has developed a comprehensive transition plan based on a two-pillar multi-energy strategy to achieve its ambition of carbon neutrality by 2050, together with society.

Two-pillar strategy

Pillar 1: Oil & Gas

• Focus on low-cost, low-emission hydrocarbon assets
• LNG as key transition fuel to replace coal
• Reduce Scope 1+2 emissions from operated facilities by 40% by 2030 vs 2015
• Eliminate routine flaring by 2030
• Reduce methane emissions by 80% by 2030 vs 2020

Pillar 2: Electricity

• Build integrated renewable and flexible power generation portfolio
• Target 100 GW of renewable capacity by 2030
• Achieve >100 TWh annual power generation by 2030 (70% renewable, 30% flexible)
• ROACE target of ~12% for Integrated Power segment

2030 Objectives

Energy production growth:

• Increase total energy production by +4% per year between 2024 and 2030
• Electricity to account for nearly 20% of hydrocarbon equivalent production by 2030
• Oil & Gas production growth of around 3% per year over next five years

Emissions reduction:

• Net Scope 1+2 emissions reduction of 40% by 2030 vs 2015 (including nature-based carbon sinks)
• Lifecycle carbon intensity of energy products sold reduced by 25% by 2030 vs 2015
• Maintain Scope 3 emissions below 400 Mt CO2e

Investment strategy

Capital allocation:

• $17.8 billion net investments in 2024, with $4.8 billion for low-carbon energies
• Around $4 billion per year investment in electricity by 2030
• $1 billion energy efficiency improvement plan (2026-2028)

Technology focus:

• 68% of R&D budget devoted to new energies, batteries, and environmental footprint reduction
• $805 million R&D budget with 15 R&D centers worldwide
• More than 250 patent applications in 2024

Decarbonization levers

Operational improvements:

• Energy efficiency: $1 billion plan (2023-2025) achieving 1.5 Mt CO2e/year reduction
• Electrification of facilities using low-carbon electricity
• 100% low-carbon electricity supply for European and US refineries from 2025
• Methane leak detection with 13,000 sensors deployed by end 2025

Portfolio transformation:

• Renewable capacity growth from 26 GW in 2024 to 100 GW by 2030
• LNG production increase with lower carbon intensity projects
• Biofuels production expansion with focus on waste-based feedstocks
• Development of low-carbon hydrogen for European refineries

Long-term vision (2050)

By 2050, TotalEnergies aims to produce:

• ~50% electricity (500 TWh/year from ~400 GW renewable capacity)
• ~25% low-carbon molecules (50 Mt/year biogas, hydrogen, e-fuels)
• ~25% Oil & Gas (primarily LNG ~25-30 Mt/year, low-cost oil for petrochemicals)

Carbon neutrality approach:

• 10 Mt CO2e/year residual Scope 1+2 emissions offset by nature-based carbon sinks
• 100 Mt CO2e/year Scope 3 emissions addressed through CCS/CCU solutions
• Contribution to global emissions reduction through enabled emissions reductions

Governance and monitoring

• Regular review of transition plan progress against 2025 and 2030 targets
• Integration of climate considerations into capital allocation decisions
• Scenario analysis using IEA pathways to test plan resilience
• Third-party verification of key metrics and trajectories

Policies related to climate change mitigation and adaptation

Climate ambition and commitments

TotalEnergies supports the objectives of the Paris Agreement and has established an ambition of carbon neutrality by 2050, together with society.

Core climate policies

Emissions reduction policy:

• Reduce net Scope 1+2 emissions from operated facilities by 40% by 2030 vs 2015
• Reduce methane emissions from operated facilities by 80% by 2030 vs 2020
• Eliminate routine flaring by 2030 (founding member of World Bank's "Zero Routine Flaring by 2030" initiative since 2014)

Energy transition policy:

• Two-pillar multi-energy strategy balancing oil & gas with renewable electricity
• Focus on low-cost, low-emission hydrocarbon assets
• Development of integrated renewable and flexible power generation
• Target lifecycle carbon intensity reduction of 25% by 2030 vs 2015

Operational climate policies

Energy efficiency policy:

• "Our 5 Levers for a Sustainable Change" initiative engaging all employees
• Systematic energy efficiency assessments at all facilities
• $1 billion investment plan (2023-2025) for energy efficiency improvements
• Second $1 billion plan planned for 2026-2028

Low-carbon electricity policy:

• Go Green initiative: 100% low-carbon electricity supply for European and US refining facilities from 2025
• Up to 2.5 TWh/year low-carbon electricity for European assets
• Around 1.5 TWh/year renewable electricity for US assets

Methane management policy:

• Comprehensive methane reduction strategy across four sources: flaring, vents, stationary combustion, and fugitive emissions
• Continuous real-time detection systems deployment by end 2025
• Annual leak detection and repair campaigns at all upstream sites
• AUSEA drone detection technology sharing with partners

Technology and innovation policies

R&D strategy:

• 68% of R&D budget focused on new energies, batteries, and environmental footprint reduction
• OneTech branch dedicated to providing technical expertise for transition strategy
• Low-carbon technology development from project design stage

Carbon management policy:

• Development of carbon capture and storage (CCS) projects
• Priority on reducing own emissions first, then "Storage as a Service" for industrial customers
• Investment of ~$100 million/year in CCS business
• Target gross storage capacity of 10 Mt CO2/year by 2030

Nature-based solutions policy:

• Development of high-quality nature-based carbon sink portfolio
• $100 million annual budget for NBS projects
• Use of carbon credits only from 2030 for residual emissions offsetting
• Focus on forestry, regenerative agriculture, and wetlands protection

Adaptation measures

Physical risk management:

• Climate scenario analysis using IEA pathways
• Infrastructure resilience assessments
• Operational flexibility to manage weather variability in renewable generation

Business model adaptation:

• Portfolio diversification across energy sources
• Geographic diversification to spread climate risks
• Flexible asset base capable of responding to market changes

Governance and implementation

Oversight structure:

• Board-level oversight of climate strategy
• Executive Committee responsibility for transition strategy implementation
• Integration of climate considerations into all business decisions

Monitoring and reporting:

• Regular progress tracking against climate targets
• Third-party verification of key climate metrics
• Transparent reporting through sustainability statements
• Participation in industry initiatives (OGDC, OGMP 2.0)

Stakeholder engagement policies

Customer support:

• TotalEnergies OneB2B Solutions assisting large companies in decarbonization
• Development of low-carbon energy solutions for industrial customers
• Electric mobility infrastructure development

Industry collaboration:

• Active participation in Oil & Gas Decarbonization Charter
• Technology sharing agreements with partners
• Support for industry methane reduction initiatives

Actions and resources in relation to climate change policies

Investment in climate action

Financial resources:

• Net investments of $17.8 billion in 2024, with $4.8 billion dedicated to low-carbon energies (mainly power)
• Around $4 billion per year planned investment in electricity by 2030
• R&D budget of $805 million with 68% focused on new energies and environmental footprint reduction
• $1 billion energy efficiency improvement plan (2023-2025) with second $1 billion plan for 2026-2028

Investment allocation:

Operational actions

Energy efficiency initiatives:

• More than 170 energy efficiency projects completed by 2024
• 1.5 Mt CO2e/year emissions reduction achieved
• Energy savings of more than $100 million/year generated
• 74% of Exploration & Production assets optimized since 2021
• Nine gas turbines shut down on underutilized assets

Electrification and low-carbon electricity:

• Go Green initiative supplying 100% low-carbon electricity to European and US refineries from 2025
• 2.5 TWh/year low-carbon electricity for European Refining-Chemicals assets
• 1.5 TWh/year renewable electricity for US facilities from Texas portfolio
• Major electrification projects completed at Antwerp petrochemicals site and Normandy platform

Methane emission reduction:

Technology development and deployment

Renewable energy expansion:

Low-carbon molecules development:

• Biorefinery at La Mède operational since 2019
• Grandpuits biorefinery conversion scheduled for 2026 (210 kt/y SAF capacity)
• SAF production target of 1.5 Mt/y by 2030 (~10% of global market)
• Biogas production capacity: 1.2 TWh/year equivalent of biomethane
• Low-carbon hydrogen call for tenders: up to 500 kt/year for European refineries by 2030

Digital and innovation actions:

• Digital Factory: 300 developers and data scientists optimizing industrial tools
• More than 250 patent applications in 2024
• AUSEA technology sharing with 6 partners for methane detection
• Continuous real-time detection deployment across operated assets

Carbon capture and storage initiatives

CCS project development:

• Four North Sea projects under development for CO2 storage
• 25% stake in Bayou Bend project in Texas
• Studies for Malaysia CCS projects with Petronas and Mitsui partners
• Target gross storage capacity of 10 Mt CO2/year by 2030

Existing CCS operations:

• Snøhvit liquefaction plant: 9 Mt CO2 stored since 2008
• Native CO2 storage planned for Qatar NFE and NFS LNG trains
• Ichthys LNG native CO2 storage solution under study

Nature-based solutions portfolio

Project development:

• 13 sanctioned projects by end 2024
• Portfolio targeting forestry, regenerative agriculture, and wetlands protection
• 13.7 million certified carbon credits in stock (end 2024)
• Target: 50 million carbon credits by 2030

Implementation approach:

• Focus on high-quality, permanent emissions reductions
• Balance of financial revenue from agriculture/forestry with environmental benefits
• Certification by international standards (VCS/Verra, ACR, ANREU)
• Consumption rate of 10% of stock per year from 2030

Human resources and capability building

Workforce engagement:

• "Our 5 Levers for a Sustainable Change" initiative engaging all 102,887 employees
• More than 27,000 employees participated in SDG-related workshops
• 250 sites/business units with local action plans for 2025 objectives
• More than 513,000 days of training provided annually

Technical expertise:

• OneTech branch with 3,500+ R&D personnel
• 15 R&D centers worldwide
• Specialized teams for methane reduction, energy efficiency, and renewable energy development
• Partnership and collaboration teams for non-operated assets

Industry collaboration and partnerships

Oil & Gas Decarbonization Charter (OGDC):

• Co-champion role with ADNOC and Aramco CEOs
• 55+ companies representing 45% of global oil and gas production
• Collaborate & Share program for best practices
• 80% of non-operated production covered by OGDC/OGMP 2.0 members

Technology partnerships:

• 6 cooperation agreements for AUSEA methane detection technology
• Joint ventures for electrolyzer projects powered by renewable electricity
• Tolling contracts for green hydrogen production
• Long-term supply agreements for low-carbon energy products

Targets related to climate change mitigation and adaptation

2030 Climate targets

GHG emissions targets:

Carbon intensity targets:

Energy production targets:

Technology-specific targets

Renewable energy targets:

Low-carbon molecules targets:

Operational efficiency targets

Energy efficiency targets:

Methane reduction targets:

Carbon management targets

Carbon capture and storage:

Nature-based solutions:

Long-term ambition (2050)

Carbon neutrality vision:

• Production mix by 2050:

  • ~50% electricity (500 TWh/year from ~400 GW renewable capacity)
  • ~25% low-carbon molecules (50 Mt/year biogas, hydrogen, e-fuels)
  • ~25% Oil & Gas (primarily LNG ~25-30 Mt/year)

• Residual emissions management:

  • 10 Mt CO2e/year Scope 1+2 residual emissions offset by nature-based carbon sinks
  • 100 Mt CO2e/year Scope 3 emissions addressed through CCS/CCU solutions

Target governance and monitoring

Review and updates:

• Regular assessment of target progress and achievement
• Enhanced targets when ahead of schedule (2025 Scope 1+2 target strengthened)
• Integration with business planning and capital allocation
• Third-party verification of key metrics and methodologies

Alignment with scenarios:

• Targets consistent with IEA scenarios and Paris Agreement objectives
• Scope 1+2 reduction aligned with EU "Fit for 55" program (-37% by 2030)
• Lifecycle carbon intensity trajectory consistent with IEA APS scenario
• Independent third-party (Wood Mackenzie) audit of calculations and trajectories

Energy consumption and mix

Total energy consumption

Net primary energy consumption: 156 TWh (operated perimeter)

Energy consumption by operations

Operational energy use: TotalEnergies' energy consumption is primarily related to its industrial operations across the oil and gas value chain, refining, petrochemicals, and power generation.

Energy efficiency initiatives:

• $1 billion energy efficiency improvement plan (2023-2025) achieving 1.5 Mt CO2e/year reduction
• Energy savings of more than $100 million/year generated
• 74% of Exploration & Production assets optimized since 2021
• Nine gas turbines shut down on underutilized assets

Energy mix in operations

Power generation portfolio:

2030 power generation target mix:

• 70% from renewable sources
• 30% from flexible sources (CCGT, storage)

Low-carbon electricity supply initiatives

Go Green initiative:

• European assets: Up to 2.5 TWh/year low-carbon electricity supply from 2025

  • 0.8 TWh/year from operational/construction European renewable portfolio
  • 4.2 TWh/year under development
  • Balance from aggregation trading portfolio

• US assets: Around 1.5 TWh/year renewable electricity

  • Danish and Myrtle assets: ~1 TWh/year
  • Hill project: remainder from 2025
  • Supplying Port-Arthur and La Porte facilities

Impact: This initiative will enable reduction of more than 2 Mt CO2e/year on Refining & Chemicals Scope 2 emissions compared to 2015.

Energy efficiency improvements

2023-2025 Energy efficiency plan:

Specific improvements:

• Normandy refinery: Reforming unit modernization achieving 75 kt CO2e/year reduction
• Heat recovery: Waste heat supply to Le Havre district heating (18 kt CO2e reduction)
• Angola Block 17: Two gas turbines shut down (29 kt CO2e/year, 13 Mm³/year fuel gas savings)
• UK Elgin site: Turbine optimization (15 kt CO2e/year reduction)

Electrification initiatives

Major electrification projects:

Renewable energy production

Renewable electricity generation by geography (2024):

Energy transition metrics

Lifecycle carbon intensity of energy products sold:

• 2024: -16.5% vs 2015 baseline
• 2025 target: >-17% vs 2015
• 2030 target: -25% vs 2015

Energy production trajectory:

• Total energy production growth: +4% per year between 2024 and 2030
• Electricity share increasing from ~10% in 2025 to ~20% by 2030
• Renewable generation expected to account for 70% of power production by 2030

Gross Scopes 1, 2, 3 and Total GHG emissions

Scope 1+2 Emissions from Operated Facilities

2024 Emissions:

• Total Scope 1+2: 34 Mt CO2e (-25% vs 2015 baseline of 46 Mt CO2e)
• Oil & Gas facilities: 29.4 Mt CO2e (-36% vs 2015)
• CCGT facilities: 4.9 Mt CO2e
• 2015 baseline: 46 Mt CO2e

Historical trend:

Targets and Trajectory

Near-term targets:

• 2025 target: <37 Mt CO2e (enhanced from previous <38.8 Mt CO2e)
• 2030 target: 25-30 Mt CO2e net emissions (-40% vs 2015, including nature-based carbon sinks)

Emissions reduction levers to 2030:

Methane Emissions

2024 Performance:

• Operated methane emissions: 29 kt CH4 (-55% vs 2020 baseline of 64 kt CH4)
• 2020-2024 progress: Exceeded -50% target by 2025, achieving -55% already

Methane reduction trajectory:

Methane reduction initiatives:

• Routine flaring elimination: Achieved in Nigeria (OML100) and Gabon
• Leak detection: AUSEA drone campaigns and 13,000 continuous sensors by 2025
• Closed flare systems: 3 projects approved (160 kt CO2e/year reduction)
• Equipment upgrades: Pneumatic equipment replacement with compressed air systems

Scope 3 Emissions

2024 Scope 3 (Category 11): 342 Mt CO2e

• Target: Maintain below 400 Mt CO2e through 2030
• 2015 baseline: 410 Mt CO2e (published reference)
• Historical context: 2023: 351 Mt CO2e

Scope 3 composition and strategy: Scope 3 emissions primarily represent the use of sold energy products by customers. TotalEnergies' strategy focuses on:

• Helping customers reduce their emissions through low-carbon energy portfolio
• Enabled emissions reductions through LNG substituting coal (~65 Mt CO2e in 2024)
• Renewable electricity generation displacing fossil generation (~18 Mt CO2e in 2024)
• By 2030: Estimated ~150 Mt CO2e enabled reductions (90 Mt from LNG, 60 Mt from renewables)

Scope 1+2 Intensity Metrics

Upstream Oil & Gas intensity:

• 2024: 17 kg CO2e/boe
• 2015: 21 kg CO2e/boe
• Improvement: -19% reduction in carbon intensity

Industry positioning: TotalEnergies among best performers in industry for operated asset intensity

Emissions by Business Segment

Exploration & Production:

• Primary contributor to Scope 1+2 emissions
• Focus on methane reduction and energy efficiency
• 200+ GHG reduction projects implemented in 2024

Refining-Chemicals:

• Significant emissions reduction through low-carbon electricity supply
• Go Green initiative targeting >2 Mt CO2e Scope 2 reduction by 2030
• Energy efficiency improvements in heat exchangers and furnaces

Gas, Renewables & Power:

• CCGT facilities contribute 4.9 Mt CO2e
• Renewable generation with minimal operational emissions
• Supporting grid stability and coal displacement

Verification and Reporting

Quality assurance:

• OGMP 2.0 Gold Standard certification for 4th consecutive year
• Third-party verification of key emission metrics
• Independent audit by Wood Mackenzie of calculation methodologies
• Comprehensive monitoring and reporting systems

Climate Scenario Alignment

Trajectory assessment:

• Scope 1+2 reduction target (-40% by 2030) aligned with EU "Fit for 55" (-37%) and IEA NZE scenario (-28%)
• Lifecycle carbon intensity reduction trajectory assessed as consistent with below 2°C scenario by TPI
• MSCI Enhanced ITR assessment: 1.9°C, indicating alignment with Paris Agreement minimal goal

GHG removals and GHG mitigation projects financed through carbon credits

Nature-Based Solutions (NBS) Portfolio

Current portfolio status (2024):

• Stock of certified carbon credits: 13.7 million credits
• Sanctioned projects: 13 projects by end 2024
• Annual investment budget: $100 million
• Cumulative budget pledged: Nearly $770 million over project lifespans
• International standards: VCS/Verra, ACR (American Carbon Registry), ANREU

Carbon Credit Generation Trajectory

Expected credit generation:

Portfolio development target:

• Build stock of around 50 million carbon credits by 2030
• Continue developing new projects between 2025-2030
• Account for methodological revisions and technical updates in projections

Project Types and Approach

Investment focus areas:

• Forestry projects: Forest conservation and restoration
• Regenerative agriculture: Sustainable farming practices that sequester carbon
• Wetlands protection: Preservation and restoration of wetland ecosystems

Strategy principles:

• Combine and balance financial revenue from agriculture/forestry with environmental benefits
• Focus on soil health, biodiversity, water cycle improvements, and carbon sequestration
• Support local standard of living improvements
• Promote just transition through community engagement

Credit Usage Strategy

Timing and application:

• Usage start date: 2030 (no offsetting before this date)
• Usage scope: Only for Company's Scope 1+2 residual emissions
• Consumption rate: 10% of stock per year starting from 2030
• 2030 annual usage: ~5 million credits per year

Offsetting approach:

• Voluntary offsetting of residual emissions only after maximizing direct emission reductions
• Focus on high-quality, permanent emissions reductions and sequestration
• Attention to integrity and permanence of financed activities

Quality Standards and Verification

Certification standards:

• VCS (Verified Carbon Standard/Verra): Primary international standard
• ACR (American Carbon Registry): US-based registry
• ANREU: Additional recognized standard

Quality criteria:

• High-quality portfolio development with focus on permanence
• Robust and recognized voluntary crediting mechanisms
• Methodological integrity and technical verification
• Support for strengthening global framework of trust

Integration with Climate Strategy

Role in carbon neutrality ambition:

• NBS credits specifically for offsetting 10 Mt CO2e/year residual Scope 1+2 emissions by 2050
• Complement to direct emissions reduction efforts
• Part of broader ambition of carbon neutrality by 2050, together with society

Relationship to emission reduction hierarchy:

1. Priority: Direct emission reductions (Scope 1+2 target: -40% by 2030)
2. Secondary: Customer emission reductions through low-carbon energy portfolio
3. Final: Residual emission offsetting through high-quality NBS credits from 2030

Investment and Financial Framework

Funding commitment:

• Sustained $100 million annual budget
• Long-term investment horizon matching project lifecycles
• Portfolio approach diversifying across project types and geographies

Portfolio management:

• Balance between immediate credit generation and long-term portfolio development
• Regular assessment of project performance and credit quality
• Adaptation to evolving standards and methodologies

Supporting Industry Standards

Industry engagement:

• Support for strengthening global voluntary carbon market frameworks
• Participation in standard-setting and best practice development
• Advocacy for robust crediting mechanisms
• Contribution to market transparency and integrity

No Carbon Credit Trading or Speculation

Clear usage commitment:

• Credits exclusively for offsetting TotalEnergies' own residual emissions
• No trading or speculation in carbon credit markets
• Focus on environmental integrity rather than financial arbitrage
• Long-term holding strategy aligned with emission reduction timeline

Policies related to pollution

Air Quality Management Policy

Methane emissions reduction: TotalEnergies has implemented comprehensive policies to reduce methane emissions across four sources:

• Flaring reduction: Elimination of routine flaring by 2030, founding member of World Bank's "Zero Routine Flaring by 2030" initiative since 2014
• Vents management: Rerouting gas to export systems or flares, replacement of pneumatic equipment
• Stationary combustion optimization: Equipment efficiency improvements
• Fugitive emissions control: Continuous real-time detection systems and annual leak detection campaigns

Air emissions monitoring:

• OGMP 2.0 Gold Standard certification for 4th consecutive year
• AUSEA drone technology for methane detection and quantification
• Deployment of 13,000 sensors for continuous real-time detection by end 2025
• Regular emissions monitoring across all operated facilities

Water Protection Policies

Water management approach:

• Fresh water withdrawal monitoring: 92 Mm³ (ESRS perimeter)
• Implementation of water recycling and efficiency measures
• Protection of water resources in operational areas
• Discharge quality monitoring and treatment

Soil Protection and Waste Management

Circular economy initiatives:

• Priority given to waste and residues for biofuel production (>75% circular feedstocks)
• Used cooking oils and animal fats utilization avoiding first-generation biomass
• Refinery waste heat recovery projects (Le Havre district heating)
• Equipment recycling and modernization programs

Regulatory Compliance Framework

Environmental standards adherence:

• Compliance with local and international environmental regulations
• Proactive adoption of best available techniques
• Regular environmental impact assessments
• Continuous improvement approach to pollution prevention

"Our 5 Levers for a Sustainable Change" Initiative

Company-wide pollution reduction program:

1. Energy consumption minimization
2. Low-carbon operations deployment
3. Environmental discharges reduction
4. Community engagement
5. Employee care and commitment

Implementation approach:

• Engagement of all 102,887 employees
• Local action plans at 250 sites representing 94.4% of employees
• Workshop participation by more than 27,000 employees
• Site-specific objectives for 2025 achievement

Technology and Innovation for Pollution Reduction

R&D investment:

• 68% of $805 million R&D budget devoted to environmental solutions including methane, CCUS, water, and biodiversity
• Development of cleaner technologies and processes
• Digital solutions for environmental monitoring and optimization

Closed flare systems:

• Installation of closed flares to recover and treat waste gases
• First closed flare operational at Tempa Rossa facility in Italy
• Three additional projects approved in Angola and UK (160 kt CO2e/year reduction)

Industry Collaboration

Best practices sharing:

• Active participation in Oil & Gas Decarbonization Charter (OGDC)
• AUSEA technology sharing with 6 partners for methane detection
• Collaborate & Share program for pollution reduction solutions
• Support for industry-wide emission reduction standards

Substances of concern and substances of very high concern

Policy and management approach

TotalEnergies monitors the use of substances of concern (SoC) and substances of very high concern (SVHC) across its operations, with particular focus on compliance with REACH regulations in Europe and equivalent frameworks in other regions.

Identification and listing

For operated sites:

• Hazardous products such as carcinogenic, mutagenic or toxic to reproduction (CMR) chemicals are listed and their risks identified as part of the One MAESTRO prevention framework
• In countries with no regulatory framework, criteria of minimum toxicity, minimum bioaccumulation potential and maximum biodegradability are used to select chemicals
• A documented chemical management procedure must be implemented to limit risks to the environment, taking into account selection, storage, transportation, use, possible associated emissions and disposal

For polymer production:

• The Company carries out continuous assessment of substances used, in compliance with the strictest local regulations for health and environmental protection, particularly REACH regulations in the EU where most operated production sites are located

For Marketing & Services products:

• Traceability of substances used and associated certifications are ensured from purchase to delivery of batches to customers
• Safety data sheets accompany petroleum and chemical products marketed by the Company
• Teams of regulatory experts, toxicologists and ecotoxicologists ensure preparation of safety documentation and REACH registration (or equivalent in other geographical regions)

Phase-out commitments

TotalEnergies is working to eliminate and/or replace, where possible, substances of concern and substances of very high concern. Action has been taken on operated facilities to:

• Eliminate asbestos: The Company prohibits the use of materials containing asbestos in new buildings and installations. These components are gradually being removed from plants as part of a comprehensive asbestos removal plan launched several years ago
• Eliminate PCBs (polychlorinated biphenyls): The Company prohibits the use of equipment containing PCBs. These components have been progressively eliminated from installations as part of a global PCB elimination plan launched several years ago
• Eliminate HFCs and HCFCs: In accordance with European Union regulations relating to fluorinated GHGs, the Company has banned since years the use of the targeted HFC and HCFC gases

Monitoring and reporting

Europe: In accordance with regulations, the Company's operated sites maintain an up-to-date list of substances of concern (SoC) and substances of very high concern (SVHC) present in their purchases and sales (with associated quantities).

Outside Europe: Regulations in force do not provide for similar monitoring. The Company has asked its operated sites located outside of Europe to engage in this process. Based on the data collected, it is not possible at this stage for the Company to publish an estimate of the quantities concerned in accordance with its quality assurance approach for published data.

Non-operated sites: The Company has questioned the operators of its non-operated sites to collect their information concerning SoC and SVHC. The operators of these sites are mainly located in countries not subject to European regulations and have no obligation to collect and make this information public. In 2024, less than 15% of third-party operated entities provided SoC and SVHC data, and the Company is therefore unable to publish this information. The Company has not identified any reasonable scientific basis for making estimates of these missing data at this stage.

Conclusion

TotalEnergies fully shares the desire to replace and/or minimize the use of substances of concern and to phase out the use of substances of very high concern in the industry. The Company regularly monitors product safety in order to eliminate and/or replace, where possible, substances of concern and extremely high concern that may be present in its industrial processes. However, quantitative disclosure of total SoC and SVHC tonnages is not yet available due to data collection challenges, particularly outside Europe and for non-operated sites.

Raw materials used by TotalEnergies for its activities (E5-4)

In 2024, the main raw materials used by TotalEnergies were:

Water

For details on the use of this resource, refer to point 5.2.3 of the report.

Hydrocarbons

• Exploration & Production sector (ESRS perimeter): Consumption amounted to almost 40 Mt for production operations.
• Other operations (ESRS perimeter excluding OBOs): Consumption exceeded 53 Mt. (Note: Data for OBOs could not be collected in 2024; a new request will be sent to operators in 2025.)

Circular raw materials

Circular raw materials include renewable raw materials (from biomass) and secondary raw materials (waste and residues). Consumption increased in 2024, mainly in connection with the development of biogas, biofuels, and circular polymers production activities.

Metals

The Company has collected data from its purchasing teams. This process led to the collection of data related to certain purchasing categories, but it was not possible to collect data on projects in 2024, which represent a significant proportion of metal purchases. Consequently, the information currently collected is not representative and the Company is therefore unable to publish it for 2024. For 2025, the Company will repeat its requests for information from suppliers to improve collection rates. However, a large number of suppliers are not subject to European regulations and are under no obligation to provide this data.

Data collection and monitoring

• Water consumption and the quantities of secondary raw materials and renewable raw materials are monitored and reported annually by the Branches in the environmental reporting tool, which ensures traceability and archiving.
• The total quantity of hydrocarbons is estimated annually at Company level based on information collected from the purchasing and supply teams and stored in the Company's environment reporting tool.

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Packaging

So far, information on packaging is not available as it is not systematically declared by packaging producers.

Resource outflows

TotalEnergies has set the ambition of producing 1 Mt/y of polymers from recycled or renewable materials by 2030. In 2024, TotalEnergies produced 89 kt of recycled or renewable polymers (including recycled or renewable base), compared to 80 kt in 2023 and 50 kt in 2022.

Biopolymers and plastics recycling

Biopolymers are produced either by replacing fossil feedstock in a steam cracking unit with biomass feedstock such as vegetable oils or hydrogenated residues, or directly by making low-carbon molecules such as polylactic acid (PLA) from sugar.

Mechanical recycling, the technology for which is more mature than that for chemical recycling, requires highly processed feedstock and cannot be used for every application of plastic, particularly most of those involving contact with food. This technology is suited to the needs of markets such as automotive and construction.

Advanced or chemical recycling makes it possible to process waste that cannot be recycled mechanically and to address other markets, such as those of plastics for food use; it requires more capital-intensive technologies and is still at the stage of industrial development. The purpose of the chemical recycling process is to break down used polymer in order to return, in one or more stages, to a monomer, which is the raw material of any polymer.

Circular economy initiatives

In partnership with Plastic Energy, TotalEnergies has built an advanced recycling plant in France, with the capacity to process 15 kt/y of plastic waste. This unit converts plastic waste by pyrolysis into a recycled raw material called TACOIL™. This raw material is then transformed by TotalEnergies into polymers with properties identical to those of virgin polymers, and in particular compatible with food use.

In March 2023, TotalEnergies and Paprec entered into a long-term commercial agreement to develop the first French value chain for chemical recycling of plastic film waste.

In September 2023, TotalEnergies announced the construction of a mechanical recycling unit at Grandpuits, scheduled to be commissioned in 2026, expected to produce 30 kt/y of high added value compounds consisting of up to 50% recycled plastic materials.

Lubricants circularity

In July 2024, TotalEnergies announced the acquisition of Tecoil, a Finnish company specializing in the manufacture of re-refined base oils (RRBO). Tecoil operates a plant in Hamina with a production capacity of 50 kt/year of re-refined base oils, with properties comparable to the best virgin base oils. This integration is expected to accelerate the use of these oils in the manufacture of top-of-the-range lubricants to meet customers' growing demand for increasingly high-performance and circular products.

TotalEnergies has been a founding member since 2019 of the Alliance to End Plastic Waste, which brings together more than 80 members and project partners, aiming to develop and implement solutions to reduce plastic waste in the environment.

Waste

Target and performance

Target: Recycle more than 70% of the waste from sites operated by the Company's subsidiaries (excluding digestate from biogas units)

Performance: 71% of the waste produced by sites operated by the Company's subsidiaries was recycled in 2024

Waste management approach

TotalEnergies applies a waste management hierarchy across its operations, prioritizing reduction, reuse, and recycling over disposal. The Company focuses on recycling waste from production sites of subsidiaries in the Exploration & Production segment, sites producing more than 250 kt/y in the Refining & Chemicals and Marketing & Services segments, as well as gas-fired power plants in the Integrated Power segment.

Digestate valorization

The anaerobic digestion process in biogas production generates a co-product, digestate, a natural fertilizer with high agronomic value, which is used by farmers to replace synthetic fertilizers, in a virtuous circular economy scheme. With 500 kt of digestate, this makes nearly 33 kt/y of chemical fertilizers that are replaced by a natural fertilizer.