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Environmental challengesThe Company’s activities incur risks for the environment, for which TotalEnergies has developed a structured management policy. In this context, the Company has identified its main environmental risks:
The risks and challenges relating to the environment 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). To address these risks, TotalEnergies relies on the HSE division, which forms part of the Strategy & Sustainability division, whose President is a member of the Executive Committee. General policy and environmental targetsIn keeping with its Safety Health Environment Quality charter, TotalEnergies considers respect for the environment to be a priority. All employees, at every level, must do their utmost to protect the environment as they go about their work. TotalEnergies strives to control its energy consumption, its emissions in natural environments (water, air, soil), its residual waste production, its use of natural resources and its impact on biodiversity. TotalEnergies takes a constructive approach on this topic that is based on transparency and dialogue when communicating with its stakeholders and third parties. With this aim, the HSE division manages in an integrated manner the environmental, safety, health and societal challenges related to the Company’s operations. It coordinates the implementation of the Company’s Health, Safety, Environment and Quality Charter by defining and monitoring the implementation of the One MAESTRO internal reference framework. This reference framework and the corresponding audits are described in “Health and safety for everyone” section. The HSE division and the HSE departments within the Company’s entities seek to ensure that both applicable local regulations and internal requirements of One MAESTRO and the Company’s additional commitments are respected. The Company’s steering bodies, led by the HSE division, are tasked with:
As a general requirement, the One MAESTRO reference framework states that the environmental management systems of the sites operated by the Company that are important for the environment must be ISO14001 certified within two years of start-up of operations or acquisition: 100% of these 79 sites were compliant in 2021. In addition to this requirement, at year-end 2021, a total of 279 sites operated by the Company were ISO14001 certified. In 2021, 22 new sites received ISO14001 certification. The One MAESTRO reference framework also includes specific requirements covering the Company’s various environmental risks (refer to “Preventing risks of accidental pollution”). In January 2022, the Company set itself higher environmental progress targets for 2030. TotalEnergies seeks to ensure that all employees share its environmental protection requirements. Employees receive training in the required skills (refer to “Health and safety for everyone” section). TotalEnergies also raises employee awareness through internal communication campaigns (e.g., in-house magazines, intranet, posters). Preventing risks of accidental pollutionTo prevent accidental risks and, in particular, major spills that could reach the environment, TotalEnergies implements appropriate risk management policies. Section “Preventing the occurrence of major industrial accidents” describes the management measures covering the design and construction of facilities and any changes to existing facilities, as well as operations. It also describes the measures taken to control the integrity of facilities over time. For its sea and river shipment requirements, TotalEnergies only charters ships and barges that meet the highest international standards. The internal policy that lays down the process and criteria by which ships and barges are selected, known as vetting. These criteria are based, in particular, on the regulations, the best practices and recommendations of the OCIMF(1) and, in Europe, on the European Barge Inspection Scheme (EBIS). Tankers and barges are vetted by a single centralized Company entity. The average age of the TotalEnergies’ time-chartered fleet is approximately seven years. The Company’s operated marine terminals have completed the consolidation of their physical characteristics in the global database that forms part of the OCIMF’s Marine Terminal Information System (MTIS), which will make it easier to assess ships’ compatibility with ports of call. Additionally, TotalEnergies encourages all operated terminals to use the Marine Terminal Management and Self-Assessment (MTMSA), the framework recommended by the industry to terminal operators to ensure continuous improvement in the safety of their operations. A training course on checking safety conditions of the ship/shore interface (SSSCL – Ship Shore Safety Check List) and cargo transfer operations was made a requirement of the One MAESTRO reference framework in October 2020. At year-end 2021, 100% of the subsidiaries operating terminals had staff who had already undergone this training. (1) Oil Companies International Marine Forum (OCIMF): An industry forum including the leading international oil companies. This organization manages the Ship Inspection Report (SIRE) Program, which holds and provides access to tanker and river barge inspection reports (Barge Inspection Questionnaire – BIQ). Oil spill preparednessIn order to manage a major accidental spill efficiently, TotalEnergies has implemented a global crisis management system that is described in “Health and safety for everyone” section For the sites operated by the Company exposed to the risk of accidental spills that reach the surface water, this system is supplemented by requirements of the One MAESTRO reference framework. These requirements demand that the oil spill contingency plans be regularly reviewed and tested in exercises. These plans are specific to each site and are adapted to their structure, activities and environment while complying with Company recommendations. The TotalEnergies companies can call on in-house human and material resources (Fast Oil Spill Team, FOST) and benefit from assistance agreements with the main third-party organizations specialized in the management of hydrocarbon spills. For the oil and gas exploration and production activities, since 2014, subsea capping and subsea containment equipment that can be transported by air has been positioned at various points of the world (South Africa, Brazil, Norway and Singapore). This equipment provides access to solutions that are more readily available in the event of oil or gas blowout in deep offshore drilling operations. From these locations, the equipment can benefit TotalEnergies’ operations worldwide. This equipment was developed by a group of nine oil companies, including TotalEnergies, and is managed by Oil Spill Response Ltd (OSRL), a cooperative dedicated to the response to marine pollution by hydrocarbons. Since 2018, equipment to facilitate shallow water capping operations, Offset Installation Equipment (OIE), has been positioned in Trieste, Italy. Managed by OSRL, it can be transported by air or boat to anywhere in the world as necessary. TotalEnergies has also designed and developed its own capping system (“Subsea Emergency Response System”) to stop potential blow-out in drilling or production operations as quickly as possible. Since 2015, equipment has been installed in Angola and the Republic of the Congo, covering the entire Gulf of Guinea region. The equipment was successfully deployed in exercise and live conditions in March 2019 off Nigeria.
Accidental liquid hydrocarbon spillsTotalEnergies monitors accidental liquid hydrocarbon spills of more than one barrel. Spills that exceed a predetermined severity threshold are reviewed on a monthly basis and annual statistics are sent to the Performance Management Committee of the Company. All spills are followed by corrective actions aimed at returning the environment to an acceptable state as quickly as possible.
The increase in the volume of spills between 2020 and 2021 is mainly related to a leak in a buried pipe at the Port Arthur refinery (United States). Consult the accidental spills indicators Limiting the environmental footprint of the Company’s activitiesTotalEnergies implements a policy of avoiding, reducing and, where necessary, offsetting the environmental footprint of its operations. Protection of environmentsAir and water protectionThe Company’s operations generate emissions into the atmosphere from combustion plants and the various conversion processes and discharges into wastewater. In addition to complying with applicable legislation, TotalEnergies has drawn up rules and guidelines that the Company’s subsidiaries can use to limit the quantities discharged. TotalEnergies has set itself targets for reducing sulfur dioxide (SO2) emissions and is committed to limiting its hydrocarbon discharges into water. After analysis, the exposed sites can introduce various reduction systems that include organizational measures (such as using predictive models to control peaks in SO2 emissions based on weather forecast data and the improvement of combustion process management, etc.) and technical measures (wastewater treatment plants, using low NOX burners and electrostatic scrubbers, etc.). To date, all refineries wholly owned by the Company have this type of system. For new facilities developed by the Company, the internal rules require impact assessments to be carried out and, if necessary, actions must be taken to limit the impact of these emissions. In 2015, SO2 emissions reached 59 kt. TotalEnergies has set itself the target of reducing its emissions by 75% in 2030 (compared to 2015), which entails not exceeding 15 kt.
SO2 emissions that are likely to cause acid rain are regularly checked and reduced. In 2021, SO2 emissions have significantly decreased due to the decrease in refinery activity (shutdowns, COVID-19 pandemic) and perimeter changes. Without conjunctural effects, those emissions would have reached 21 kt. NOX emissions mainly concern the hydrocarbon exploration and production activities. They are mostly located offshore, far from the coast. In January 2022, TotalEnergies set a new target for the quality of onshore discharge water to be achieved before 2030. Compared to the previous objective, it divides by 15 the maximum hydrocarbon content expected for these discharges. To date, 100% of the onshore sites comply with the previous objective of 15 mg/l and 80% with the new objective of 1 mg/l. Studies have been launched to improve the discharges from sites that are still not in compliance.
Soil protectionThe risks of soil pollution related to TotalEnergies’ operations come mainly from accidental spills and waste storage. TotalEnergies has drawn up a guide that the subsidiaries can use to prevent and contain this pollution. The recommended approach is based on four pillars:
Lastly, decommissioned facilities operated by the Company (i.e., chemical plants, service stations, mud pits or lagoons resulting from hydrocarbon extraction operations, wasteland on the site of decommissioned refinery units, etc.) impact the landscape and may, despite all the precautions taken, be sources of chronic or accidental pollution. In addition to the appropriate management of waste produced by the dismantling and securing of sites, TotalEnergies has created a soil and groundwater depollution policy based on the assessment and management of the risks that such pollution may incur. For the sites at the end of their activity, the management of pollution is determined in accordance with regulatory obligations with an objective of continuing to control the use of the sites while favoring the possibility of redeveloping Company activities (solar, reforestation, etc.) and protecting biodiversity (priority 3 of the biodiversity ambition presented in “Managing impacts on biodiversity and ecosystems during projects and operations” section). Remediation operations are carried out by specialized entities created by the Company. At year-end 2021, 104 industrial sites that were no longer in operation (excluding service stations) were in the process of remediation. The Company’s provisions for the protection of the environment and site remediation are detailed in Note 12 to the Consolidated Financial Statements. Sustainable use ofresourcesSustainable fresh water useThe Company’s activities, mainly those of Refining & Chemicals, and to a lesser extent those of the Exploration & Production and the Integrated Gas, Renewables & Power segments, may potentially have an impact on, as well as be dependent on, water resources, particularly when the activity concerned is located in a water resources sensitive environment. Fully aware of these challenges, TotalEnergies implements the following water risk management actions:
In order to identify its facilities exposed to the risk of water stress, TotalEnergies records the withdrawal of water on all of its operated sites significant for this indicator and assesses these volumes on the basis of the current and future water stress indicators of the WRI(3) Aqueduct tool. In 2021, the Company’s sites withdrew 101 million m3 of fresh water, with net consumption of 75 million m3. 54% this volume was withdrawn in areas of water stress according to the WRI definition, i.e. areas where human demand for water exceeds 40% of resources available. These are mainly highly populated urban areas, such as urban areas in Northern Europe. According to the CDP Water definition, these withdrawals represent 10% of the overall Company’s water withdrawals (including brackish water and seawater). For priority sites defined as those located in water stress areas and withdrawing more than 500,000 m3 per year, TotalEnergies assesses water resources risk levels using, in particular, the Local Water Tool (LWT) for Oil & Gas from the Global Environmental Management Initiative (GEMI). This tool also helps guide the actions taken to mitigate the risks and to make optimal use of water resources on the sites when necessary. This risk assessment establishes that the activities of the sites operated by the Company only expose the other users of the water to a relatively low risk of water shortage. The risk mainly concerns TotalEnergies sites for which the water supply could be cut in order to maintain access to water for priority users. In 2021, TotalEnergies responded to the CDP Water survey for the 2020 period and was, for the fourth consecutive year, graded A-. The main indicator used in this reporting is freshwater withdrawal. In January 2022, TotalEnergies has set a new target for the freshwater ressource protection for 2030. The ambition of the Company is now to reduce by 20% its freshwater withdrawal in water stress area between 2021 and 2030.
In early 2022, TotalEnergies joined the CEO Water Mandate, a United Nations initiative to promote access to water and sanitation for all. The CEO Water Mandate establishes five principles for the management of water resources that the Company follow through several committed actions, accompanied by a system of transparency. (2) World Resources Institute. The indicators in this paragraph are evaluated from the Project Basic Water Stress 2030. Sustainable soil useTotalEnergies limits the use of land to the areas it needs to safely carry out its operations on its facilities. All the biofuels incorporated by the Company comply with the sustainability, traceability and certification criteria (ISCC, RSPO, etc.) set by the various national regulations (carbon balance, non-deforestation, good land use). These criteria apply to the entire production and distribution chain of biofuels and biopolymers. In addition, TotalEnergies has committed to no longer using palm oil from 2023 onward. In addition, to limit the use of inputs from agricultural production, TotalEnergies has undertaken to process more than 25% of raw materials from waste and residues (used cooking oils, animal fats, etc.) in its La Mède biorefinery. Similarly, as part of the transformation of its Grandpuits refinery into a zero-oil platform by 2024, the biofuel production plant will be supplied mainly by waste and residues supplemented by vegetable oils such as rapeseed – excluding palm oil – favoring local sourcing. Consult the Company’s environmental indicators Managing impacts on biodiversity and ecosystems during projects and operationsAware of the need to preserve biodiversity, TotalEnergies ensures that it is taken into account in all its operations. In 2016, the Company pledged to contribute to the achievement of the United Nations’ Sustainable Development Goals (SDGs), including those relating to biodiversity. From 2018, TotalEnergies signed up to the Act4Nature initiative promoted by the French Association of Enterprises for the Environment, now act4nature international alliance. In 2020, TotalEnergies has set itself a new biodiversity ambition to coincide with the preparation of the United Nations’ global biodiversity plan, which aims to protect global biodiversity and updates its public commitments in this field. This ambition is based on four core principles: This new ambition was incorporated in the One MAESTRO framework of the Company. A communication plan has been developed and deployed in the Company’s various segments and R&D. A series of webinars open to all of the Company's HSE personnel was organized to raise awareness of this ambition. A number of specific meetings to present this Ambition to the Company’s partners have been held and allowed their viewpoints and recommendations to be heard. Biodiversity AmbitionAn overview of the steps already taken under the four main areas of the biodiversity ambition is provided in the table below. 1. Voluntary exclusion zones:
Facts:
2. New projects:
Facts: A biodiversity action plan has been put in place for all operated production sites located in the most sensitive protected areas, corresponding to the IUCN I to IV and Ramsar areas, some of which have a target of a net gain. In 2021, this concerned 8 projects, 4 Axis of which are aligned with the performance standards of the World Bank’s International Finance Corporation (IFC). These are:
3. Existing sites:
Facts:
4. Promotion of biodiversity:
Facts:
Lastly, the Company has a number of R&D programs relating to biodiversity. These include the development with UNEP WCMC(4) of a biodiversity impact indicators methodology that can be consolidated at Company level, the development of a decision-support tool for actions based on the Avoid-Reduce-Offset approach, an operational catalog for nature-based solutions, biosurveillance and monitoring tools using the environmental DNA, work on mapping areas vulnerable to climate change and opportunities offered by the Company’s sites in terms of ecological corridors. TotalEnergies reports publicly on the implementation of these commitments (for more details see our Biodiversity brochure). (3) LEFT Marine (Local Ecological Footprint Tool). (4) World Conservation and Monitoring Center of the United Nations Environment Program (UNEP). Biodiversity and the use of soilsIn January 2022, the Company committed to achieve the goal of zero net deforestation for each of the new projects, on new sites, thus completing the commitments for biodiversity. In 2021, the company operated 150 sites (with a cumulative surface area of 8860 ha) located in or bordering, within a radius of 5 kilometers, protected areas and areas rich in biodiversity(5). No site overlaps natural sites inscribed on the UNESCO World Heritage List.
More specifically, the company was operating in 2021, 98 sites (with a cumulative surface area of 3147 ha) overlap protected areas and areas rich in biodiversity(5).No site overlaps natural sites inscribed on the UNESCO World Heritage List. UNESCO WHS natural, UNESCO MAB, Ramsar Convention wetlands, IUCN I to IV + those with categories NR (Not Reported) and NA (Not Assigned), national legislation, maritime conventions, EU Natura 2000 (Birds and Habitats Directives), KBA (Key Biodiversity Areas) and AZE areas (Alliance for Zero Extinction). Promoting the circular economyWith regard to food waste and food poverty, TotalEnergies’ activities pertaining to food distribution are minor and are therefore not directly affected by these issues. Promoting circular resource managementIn March 2022, we joined the Platform for Accelerating the Circular Economy (PACE). This initiative launched by the World Economic Forum and currently hosted by the World Resources Institute (WRI) aims to accelerate the transition to a more circular economy. We are committed to doubling the circularity of our businesses over the next ten years. We contribute to the circular economy at different points of the value chain: through our purchases, our sales of our production and also the management of our own waste. BiofuelsBiofuels emit over their life cycle less than 50% CO2e compared to their fossil equivalents (in accordance with European standards) and therefore represent an element of the decarbonization of liquid fuels. Our current production capacity is 500 kt/year, mainly from the Mède refinery in France. Our objective goes well beyond: 2 Mt in 2025 and 5 Mt in 2030 to be produced in a sustainable way. Today, more than 90% of biofuels on the market are first generation, i.e. produced from (virgin) vegetable oils or sugar. TotalEnergies invests in advanced biofuel projects, based on animal fats or used oils, thus limiting the conflict of use and the impact on arable land. These advanced biofuels will complete the range of first-generation biofuels. To meet its ambition to be a leader in the biofuels market, TotalEnergies has transformed its La Mède refinery in France into a world-class biorefinery. The site now produces HVO (precursor to biodiesel and SAF), bionaphtha (precursor to polymers of renewable origin) and bioLPG (liquefied gas of renewable origin), for mobility or heating uses. The agricultural raw materials used meet sustainability and traceability requirements: carbon footprint, non-deforestation and good land use. We are committed to stopping palm oil supplies from 2023 and aim to increase the proportion of waste (waste oils, animal fats) to 50% by 2025. Our future zero-oil platform at Grandpuits will also produce biofuels. BiogasBiogas, produced from the degradation of organic waste, is a renewable gas, mainly composed of methane. Compatible with existing transport and storage infrastructures, it has a key role to play in decarbonizing gas products, reducing GHG emissions by developing a circular economy. The Company aims to produce 2 TWh/year of biomethane from 2025, and more than 5 TWh/year in 2030 worldwide. In early 2021, TotalEnergies became a major player in biogas in France through the acquisition of Fonroche Biogaz with 500 GWh of installed capacity. At the end of 2021, TotalEnergies and Clean Energy launched the construction of their first biomethane production unit, in Friona, Texas. The biomethane produced will be used as an alternative fuel for mobility, thus contributing to the decarbonization of road transport. The installation will be supplied by livestock effluent from the dairy farm and will produce more than 40 GWh/year of biomethane, avoiding 45 kt CO2e/year. In early 2022, TotalEnergies and Veolia joined forces to recover biomethane from Veolia's waste and wastewater treatment facilities in operation in more than 15 countries, with the aim of producing up to 1.5 TWh/ year of biomethane by 2025. Recycled plastics and bioplasticsThe circular economy of plastics is based on three axes:
of polymers produced from recycled materials by 2030. In 2021, we produced 60 kt of recycled and bioplastic. Our ambition is to produce 30% recycled and biopolymers by 2030, i.e. 1 Million tons. Waste prevention and managementA Company rule lays down a number of minimum waste management requirements. Waste management is carried out in four basic stages: waste identification (technical and regulatory); waste storage (soil protection and discharge management); waste traceability, from production through to disposal (e.g., notes, logs, statements); and waste treatment, with technical and regulatory knowledge of the relevant processes, under the site’s responsibility. TotalEnergies asks its subsidiaries to control the processing of the waste produced by all operated sites, at every stage of their operations. This approach is based on the following four principles, listed in decreasing order of priority:
In 2021, the active sites operated by the TotalEnergies subsidiaries generated 500 kt of waste, including 165 kt of hazardous waste. In January 2020, TotalEnergies has set a new target to reuse waste. The former target was to reuse more than 50% of the waste produced by these sites. in 2030 the targeted performance will be 70%. Since 2015, all the Refining & Chemicals segment’s plastic production sites worldwide have taken part in the Operation CleanSweep® program. Operation CleanSweep® is an international program that aims to avoid losses of plastic pellets during handling operations by the players in the plastics industry, to prevent their reaching the aquatic environment (zero pellet loss). Since 2015, the program has been deployed at all polymer sites in the Refining & Chemicals segment. Additionally, TotalEnergies is a founding member of the Alliance to End Plastic Waste, launched in 2019 and consisting of 80 companies in the plastics and consumer goods value chain. The Alliance’s objective is to finance, to the extent of $1.5 billion over 5 years, the development of solutions for the reduction and processing (reuse, recycling and recovery) of used plastics in the environment, particularly in the oceans. At end of 2021, 17 partnerships have already been established. Consult the waste management indicators Environmental and social impact assessmentsWhen a new industrial site is developed, a baseline study must be conducted. This is supplemented by environmental and social impact assessments that measure and analyze actual and potential impact, positive and negative, direct, indirect or cumulative, in the short, medium and long term of the project. Those studies are generally part of a public process involving stakeholder consultation. The Company’s significant projects are listed below by country (alphabetical order): Guyana
Lebanon
Mozambique
Myanmar
Namibia
Ouganda
Sao Tome
Tanzania
United States
Which of the following statements is true for companies that make a commitment to environmental concerns quizlet?Which of the following statements is true for companies that make a commitment to environmental concerns? The company often earns favorable public opinion and loyal customers.
Which of the following statements is accurate concerning a company's environmental sustainability strategy?Which of the following statements is accurate concerning a company's environmental sustainability strategy? The environmental strategy consists of its actions to protect the environment, provide for the longevity of natural resources, and maintain ecological support systems for future generations.
Which of the following are examples of environmental marketing activities?Some green marketing examples include:. Creating eco-friendly products.. Using eco-friendly product packaging made from recycled materials.. Reducing greenhouse gas emissions from production processes.. Adopting sustainable business practices.. Marketing efforts communicating a product's environmental benefits.. Which business tool should be used to determine the success of a corporate social responsibility program?Use KPIs to Measure CSR Performance As You Go. Organizations should make short-term and long-term goals to generate benchmarks for success and key performance indicators (KPIs).
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