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Value creation for host regions

Value creation for host countries

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In line with its ambition to be the company of responsible energies and 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 group’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 group’s activities can be a source of opportunities for the people, but may also have an impact on the living conditions of local communities and residents. Furthermore, in order to address society’s global challenges, the group is committed to the public interest.

Within this context, the group has identified its main risks and opportunities with regards to creating and sharing value:
 
  • fostering the economic development of the host regions;
  • managing societal challenges related to the group’s activities;
  • engaging in citizenship initiatives.

Fostering the economic development of host regions

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Recruiting local people and supporting the development and creation of local businesses

In addition to contributing directly to job creation in the countries where the Group operates (refer to “Employment and social inclusion” section), the Group is committed to recruiting local people and subcontractors, if its operational imperatives so permit.

Each of the Group’s major industrial projects with high potential local content is part of an industrial strategy that aims to maximize the impact on the host country measured in terms of new jobs and local value creation. This strategy is based on analysis of all local industrial and human capacities available as well as those still to be developed. This forms the basis for the establishment of a specific action plan comprising training initiatives defined with the aim of ensuring a possible transfer of skills to the rest of the economy, and business development initiatives defined and implemented with the involvement of project suppliers, such as incentives to create local partnerships, transfers of technology and expertise and the creation of business training centers.

For Egina in Nigeria, a large project operated by the Group, the production of which began in December 2018, the implementation of this strategy of developing local content has entailed:

  • the development of local industrial capacity made concrete by the production of 60,000 tons of equipment and the assembly of 75% of wellheads locally
  • the delivery of 560,000 hours of training;
  • 24 million working hours by Nigerian citizens representing 77% of project hours.

This approach is also being rolled out in full across projects currently being developed by the Group: Tilenga in Uganda, EACOP (East African Crude Oil Pipeline) in Uganda and Tanzania, and Mozambique LNG.

Supporting the reindustrialization of the Group’s platforms

TotalEnergies implements a specific approach to support the conversion of its industrial sites through two additional projects carried out at the same time:

  • a project for the future is carried out by the segment concerned, taking into account analysis of market developments. The objective is to adapt industrial facilities in order to make the Group’s industrial sites competitive over the long term and respond to the challenges of the energy and ecological transition;
  • a Voluntary Agreement for Economic and Social Development (CVDES) is implemented to support the site and its ecosystem (subcontractors, stakeholders, etc.) during this period of change.

In this way, TotalEnergies restates its responsibility towards the employment basins in which the Group operates as well as its commitment to maintain a strong and lasting industrial presence.

On the Carling industrial platform (France), following the shutdown of the second steam cracker in 2015, TotalEnergies led a project for the future without any job losses and in keeping with its contractual commitments to its customers and partner companies. The CVDES relating to Carling’s site was ended in 2018 with a final commitment of €12 million in grants from TotalEnergies for four industrial projects representing €125 million of investment and 143 jobs planned. TotalEnergies also committed to support these industrial projects until the effective start-up of the production units. The Metabolic Explorer unit is currently under construction and is expected to begin operation in the first half of 2021, while construction of the AFYREN unit began in late 2020.

The reconversion of the La Mède refinery (France), entailing an initial investment of more than €275 million, is underway with the first French biorefinery and an Adblue(1) production unit is expected to begin operation in July 2019. The site also has an 8 MW solar farm, which was commissioned in 2018, and a training center, OLEUM, which started up in 2017. This project has been carried out without any lay-offs. The CVDES signed for La Mède for 2016-2019 was extended to 2020. TDR is supporting the subcontractors and putting the Group’s commitments into action. From 2018 to 2020, TDR also financially supported nine industrial projects and one industrial demonstrator to create 389 new jobs.

On the Lacq platform (France), a TDR unit, hosted by Sobegi, the platform’s controller, researches and examines third-party industrial projects that could join the platform in partnership with the Nouvelle- Aquitaine region, the Pau-Béarn Chamber of Commerce and Industry (CCI), the Chemparc public interest group, the Lacq-Orthez district authority and Sobegi. The installation in the Lacq region of an industrial project for biogas production led by the company Fonroche Biogaz(2) was confirmed in late 2018. In August 2020, the installation close to the Induslacq platform of a green chemicals project by Alpha Chitin was decided in order to optimize its industrial base thanks to utilities and services that are already available.

On the Grandpuits platform (France), TDR also plans to support the project to convert the site into a “zero-crude” platform as announced in September 2020 and representing an investment of €500 million.

More generally, TDR supports SMEs in France by proposing various measures that contribute to creating and securing jobs in the long term, such as financial support for the creation, development or takeover of SMEs in the form of zero-interest loans, support for setting up industrial projects with parties involved in local development and public authorities, or support for exports and international development. Between 2018 and 2020, loans were granted to more than 460 SME projects, amounting to a total of more than 27 million euros, and more than 10,500 jobs were supported.

In the context of the COVID-19 pandemic and since the start of the lockdown, TDR decided to suspend, for the second quarter of 2020, repayment of the principal amount of loans granted to beneficiaries of the scheme requesting to do so, and, more generally, opted to provide personalized support for borrowers in collaboration with its partners. In addition, some beneficiaries of the scheme have been able to launch new production lines to cope with the crisis, such as serological tests, divider screens, hand hygiene products and masks.

(1) Fuel additive intended for road transport and designed to lower nitrogen oxide (NOX) emissions.
(2) On January 11, 2021, TotalEnergies announced the acquisition of Fonroche Biogaz.

Managing societal challenges related to the group’s activities

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Operational societal approach

The group factors in societal challenges when conducting its operations through its one maestro reference framework (refer to “People’s health and safety” section) and focuses in particular on managing relationships with stakeholders and local impacts. Guides, manuals, video tutorials and a community of practices, available online for all group entities, helps them to implement their operational societal approach, which is adapted to the specific local requirements of the regions and communities. The group’s framework defines a structured process, the main stages of which are:

  • the analysis of the challenges and local societal context;
  • the development of a societal strategy integrated with operations;
  • Implementing and monitoring societal actions and projects.
     

Analysis of the challenges and the societal context

An assessment of the societal risks and challenges is one of the criteria for making investment, acquisition and divestment decisions concerning projects presented to the Group’s Risk Committee. When a new industrial site is developed, a societal baseline study must be conducted in advance to identify any potentially affected stakeholders, describe the local context and assess the main socio-economic and cultural challenges in the impacted area. This is supplemented by societal impact assessments that measure and analyze actual and potential impacts, positive and negative, direct, indirect or cumulative, in the short, medium and long term of the project. In 2020, 50 of these studies were launched or carried out in the Integrated Gas, Renewables & Power segment and 13 in Exploration & Production.

The Group’s One MAESTRO reference framework also requires a regular assessment, at least every five years, of the context and societal risks for each subsidiary. This assessment takes account of the sensitivity of the socioeconomic environment and the severity of the societal impact, including on human rights, related to the subsidiary’s activities. Risks are identified primarily on the basis of mapping and consultation with stakeholders such as authorities, neighboring communities, economic operators and civil society. In 2020, the innovative new SIMBA mobile app for the ongoing recording and tracking of the opinions, concerns and expectations of stakeholders was developed, with an initial rollout in Mozambique. The app helps to identify and understand the local context and facilitates ongoing analysis. It will be rolled out gradually in 2021 primarily at a number of Refining & Chemicals sites.
 

Development of a societal strategy integrated into operations

Every subsidiary pays close attention to local issues by defining short term and long-term societal targets and its priority fields of action that take account of:

  • the need to remain within the regulatory and contractual framework, as well as meeting the applicable international standards;
  • the analysis of the challenges and the societal context;
  • the Group’s ambitions and voluntary commitments with regard to civil society.

These targets are built into a structured operational action plan, based on three pillars:

  • dialogue and involvement of local stakeholders;
  • avoiding, reducing and compensate for the societal impacts of the Group’s activities;
  • developing initiatives to create a positive impact on neighboring local communities.

To structure this approach, TotalEnergies uses the internal Stakeholder Relationship Management (SRM+) introduced in 2006, which allows subsidiaries to define their societal strategy and associated action plans.

Implementing and monitoring societal actions and projects

The societal teams reporting to the HSE division and their local correspondents lend their expertise to the operational subsidiaries to implement the One MAESTRO framework. Societal aspects are included within the scope of the One MAESTRO audits that produce recommendations to reinforce control of operations. Moreover, the subsidiaries must conduct an annual self-assessment of their societal initiative and an annual internal report to list the societal actions taken locally.

In addition to factoring a societal module into the HSE for Managers training program (refer to “People’s health and safety” section), remote training modules have been developed for personnel of subsidiaries in charge of societal issues. In 2020, a digital platform named Societal Academy was created to make the necessary educational resources accessible to all subsidiaries, such as rules, guides, training materials, lessons learned and best practices. Webinars attended by more than 200 participants were organized in October 2020 for the launch of the societal reporting campaign.

Local stakeholders engagement

TotalEnergies sets up dialogue procedures based on the consultation and involvement of stakeholders in order to develop constructive and transparent relations with them. The One MAESTRO framework provides that subsidiaries are expected to establish a structured and regular dialogue process with their stakeholders to inform and listen to them and take their concerns and expectations into account, cooperate and report on actions to avoid, reduce or offset the negative effects, measure their satisfaction and identify means of improving. TotalEnergies acknowledges the specificities of the rights of indigenous and tribal peoples (as referred to in International Labour Organization Convention No. 169) and has developed a framework which defines principles to be followed with these communities. It encourages the use of experts in order to identify and understand these peoples’ expectations and specificities, consult them and contribute to their socio-economic development. This initiative is also consistent with the United Nations Guiding Principles on Business and Human Rights.

In the Refining & Chemicals segment, refineries and petrochemical sites put consultation with stakeholders at the heart of their ongoing improvement strategy and are all ISO 14001 certified. Local structures for dialogue have been set up, such as Community Advisory Panels in the United States and specific local committees for certain European platforms (Feyzin neighbors’ conference and Donges residential committee). The Marketing & Services segment has developed stakeholder engagement tools which are adapted to the diversity of its businesses (oil terminals, filling sites, lubricant plants, road transport and service stations) which can be easily adapted in a wide variety of contexts and regions such as, for example, Reunion Island or Lebanon in 2020. For Exploration & Production projects, dialogue is initiated from the exploration phase, even when TotalEnergies does not have permanent teams on site. Each subsidiary or project develops an engagement plan with stakeholders describing a process for transparent dialogue, as well as the timetable and means of ensuring its implementation. In South Africa, TotalEnergies EP South Africa (TEPSA) has conducted a number of public consultations within the framework of its future seismic and drilling surveys involving stakeholders and fishing communities. Specific meetings have been organized with civil society, local authorities and fishing associations in order to ensure that these parties are involved in the impact assessment process to address fears and concerns relating to the subsidiary’s activities. Issues relating to managing the impact of future exploration programs have been discussed with local NGOs during various meetings. Furthermore, the subsidiary has launched an information and communication campaign on its activities via various media such as radio, a webinar and public posters. In order to facilitate dialogue and allow easy access for vulnerable communities, a dedicated hotline and free access to the TEPSA project site have been set up. A network of Community Liaison Officers (CLOs) has been rolled out on the ground at certain subsidiaries and projects to provide information and consult with neighboring communities, authorities and other local members of civil society, with a particular focus on vulnerable groups. CLOs are employed by TotalEnergies and come from the local communities. They speak the local languages, understand the local way of life and play a decisive role in establishing a good relationship between TotalEnergies and its local stakeholders.

Managing the societal impact of the Group’s activities

Avoid, reduce and compensate

Following the analysis of the challenges and the societal context, various actions have been taken by subsidiaries to minimize the impacts. For example, in 2020:

Impacts for local communities on access to land, maritime space and resources

In Mozambique, the identification of impacts related to land and livelihoods has led to a multi-year action plan for local populations: construction of housing, programs to develop agricultural and fishing activities, and relocation of burial sites. In Myanmar, the offshore pre-project baseline study detailed the issues relating to fisheries. It quantifies the potential impact on the entire fishing value chain for each village by category of fishermen and by type of fish caught and processed in the region.

Impacts on cultural and religious practices and heritage

In Uganda, with respect to the Tilenga project, consultations have been held with stakeholders concerning culture and religion. These have allowed the identification and relocation of individual graves and community cultural sites with the collaboration of traditional religious leaders.
 

Handling grievances from neighboring communities

The One MAESTRO reference framework provides that the Group’s operating entities are expected to implement grievance handling procedures aligned with the United Nations Guiding Principles on Business and Human Rights. These provide residents and local communities with a preferential and easily accessible channel to voice their concerns and grievances and involve them in finding a solution. At every stage of the asset lifecycle, from developing a project to cessation of activity and divestment, the Group intends to provide swift and appropriate responses to people or organizations that have been adversely affected. As part of a continuous improvement process, analysis of all grievances received helps to improve operations. An internal methodological guide was published in 2020 setting out details of the process with practical tools drawing on international recommendations (International Petroleum Industry Environmental Conservation Association (IPIECA), International Council on Mining and Metals (ICMM), International Finance Corporation (IFC)). Grievance management forms part of the Group’s societal reporting and is one its key performance indicators. At year-end 2020, 100% of entities in the Exploration & Production (E&P), Refining & Chemicals (R&C) and Marketing & Services (M&S) segments of the One MAESTRO rollout scope with an operational activity in 2020 (refer to “Reporting scopes and method” section) had implemented or improved their grievance handling system.

In 2020, in order to make progress in this area, an Exploration & Production working group made up of societal experts from head office and subsidiaries identified best practices. A total of 13 entities received help in developing their grievance handling procedure, bringing the percentage of Exploration & Production operating entities with a mechanism of this kind at year-end 2020 to 100%. Residents are involved via resident dialogue bodies in finding solutions to control the impacts of the Group’s activities. In Marketing & Services, operating subsidiaries have been made aware and given help with setting up a grievance handling process separate from business grievances.
 

Societal indicator 2020 2019 2018
Percentage of E&P, R&C and M&S segments' operating subsidiaries in the One MAESTRO rollout scope with an operational activity which have a grievance mechanism in place 99% 47% 40%

 

Grievances received by the Group’s subsidiaries in connection with the societal impact of their activities correspond to the following: access to land and habitat, economic losses/loss of livelihood, dangers for the environment and health, employment and value chain, road safety/ logistics and transportation, adverse impact on culture and heritage, security and social conduct, quality of local dialogue and management of economic development projects.

Developing socio-economic initiatives in favor of local communities

First and foremost, the local projects address the issues of development and solidarity identified thanks to consultations with local communities, and favor cooperation and skills development.

 

Providing access to basic needs (access to energy, water, health, etc.)

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    people equiped with solar lamps by 2025
  • In connection with the Group’s willingness to make energy accessible to as many people as possible, the Integrated Gas, Renewables & Power segment developed a range of solar solutions to provide access to distributed energy in 38 countries in 2020. At year-end 2020, a total of 3.8 million solar lamps and kits had been sold, helping to improve the everyday lives of 17 million people. The Group’s aim is to equip 25 million people by 2025.

In France, TotalEnergies Marketing France (TMF) is pursuing its action to fight fuel poverty, by helping low-income households to make their homes more energy efficient within the framework of a number of national programs and initiatives: Habiter Mieux avec l’Anah, (a social and private housing support), Ecorce program (€101.2 illion in 2020). The commitment to combat fuel poverty also concerns mobility via a program to provide help with transportation for people looking for jobs in partnership with WIMOOV.

The Group’s subsidiaries have taken action to address the health crisis and launched many community initiatives to help during the COVID-19 pandemic for a cumulative amount of €70 million. These include:

  • In France, TotalEnergies Marketing France supported care workers by distributing 1,540,500 fuel cards to more than 8,000 hospitals and retirement homes.
  • In Mozambique, as part of a memorandum of understanding with the Cabo Delgado province, TotalEnergies E&P Mozambique Area 1 (TEPMA1) allowed the creation of a 22-bed isolation ward for COVID-19 patients at the Pemba district hospital. In addition, a five-year health, nutrition and hygiene program has been developed with its partner Pathfinder to help teenagers, children, women and migrants in the Palma district and the city of Mocimboa da Praia.
  • In Bolivia, TotalEnergies E&P Bolivie launched a COVID-19 pandemic support plan to help 1,651 Guaraní families from 14 local communities. These indigenous populations are particularly vulnerable owing to their isolation and lack of medical infrastructure. The plan has three main focuses: prevention, equipment and infrastructure.

In addition, the TotalEnergies Foundation program launched initiatives during the COVID-19 pandemic (refer to “Taking action during the COVID-19 pandemic” section).

Contributing to the development of local communities

In France,  Quadran proposes a number of projects eligible for participatory financing of electricity production sites through platforms labelled “Green Growth” in order to enable local citizens to benefit from additional income linked to the sale of electricity. In 2020, 17 projects representing a production capacity of 90 MWc have thus been co-financed by citizens. Four of them allowed the entry of local authorities into the capital. Throughout France, 1,200 local contributors contributed €6 million to the financing of these projects.

In Mozambique, TEPMA1 has launched Catalisa, a five-year program with its technical partner TechnoServe and the authorities of the Cabo Delgado province in the districts of Pemba, Palma, Montepuez, Chiure and Ancuabe. The aim is to support the province’s economic development with the education and vocational training of young people, as well as agro-industrial development (poultry and horticulture). At yearend 2020, the program had helped 175 farmers (including 76 women) to improve their productivity and meet local needs by creating 297 jobs. In addition, 500 young people took part in the development program and 15 new graduates received financial support to start their own business.

In Papua New Guinea, TotalEnergies E&P PNG Limited involved local stakeholders in implementing long-term socioeconomic projects. As a result of baseline studies and impact assessments concerning human rights, emphasis has been placed on improving living conditions for women within communities. In partnership with all stakeholders (Gulf province, ministry of community development, local businesses, foundations, international development agencies, community representatives, the local health committee, local women’s cooperative etc.) projects to support health, education and local economic development have been launched.

In Argentina, TotalEnergies Austral has been working for ten years with local goat farmers on a sustainable rural development program in cooperation with consulting firm Halkis. Its aim is to provide technical and professional advice for farmers in partnership with local agencies. A total of 22 production development plans have been launched in 2020 despite the COVID-19 pandemic thanks to audio and video equipment.

Engaging in citizenship initiatives: TotalEnergies Foundation program

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In addition to the solutions proposed by TotalEnergies in response to the direct expectations of the people related to its operations, the Group wants to contribute to local actions in the countries where it operates by addressing global societal challenges.

The TotalEnergies Foundation program

Développement durable et sociétal

Being present in over 130 countries, TotalEnergies has witnessed the escalation in inequality and social and environmental challenges, which affect young people in particular. Since 2017, the TotalEnergies Foundation program covers the citizenship initiatives conducted every day worldwide by TotalEnergies, its subsidiaries and its corporate foundation. Its aim is to contribute to the vitality of the host communities and regions in which the Group is based by giving 12- to 25-year-olds the means to determine their own future.

The TotalEnergies Foundation program favors collective action and aims to involve all members of the local region, including charities and the public and private sector. This joint approach based on local needs also allows the testing and rolling out of new solidarity models.

In addition to financial backing, the program’s partners receive general help to develop and achieve their goals, thanks in particular to skills-based sponsorship. Since 2018, the Action! program has allowed TotalEnergies employees to spend up to three workdays a year on general interest projects. At the end of 2020, the program had been rolled out in 63 countries, and more than 9,300 projects have been carried out since it was launched.

Four areas of action

The TotalEnergies Foundation program is based on four societal challenges, in line with the Group’s history, values and businesses.

Youth education and inclusion

Unemployment and job insecurity are affecting more and more young people all over the world. The first area of the TotalEnergies Foundation program aims to empower socially at-risk young people, by means of support and guidance, training, particularly in industry, and integration into the workplace.

In this context, and by way of example, in 2020, L’INDUSTREET, the campus for the industry of tomorrow, opened its doors in Stains in the Paris region. This new industry training center provides free training and offers innovative teaching to young people who are interested in new jobs in industry. Over time, it plans to provide places for 400 young people between 18 and 25 each year. In 2020, the TotalEnergies Foundation also launched its first call for partners and selected eight new charities in France in order to broaden its reach, focusing primarily on mobility issues for young people getting qualifications, language skills as a means of joining society and the world of work, and support for young people coming out of the child welfare system. TotalEnergies Foundation has also contributed to the launch of an experimental and collaborative training project in Senegal to address two issues: youth unemployment and the automation requirements of local industry.

Road safety

Road accidents are the leading cause of death among young people worldwide. The second priority of the TotalEnergies Foundation Program is to ensure safer transportation in order to contribute to the global target of cutting the number of deaths and injuries on the road by 50% between now and 2030. Its actions include educating young people by means of local awareness, training and advocacy efforts, as well as participation in and support for the initiatives of international organizations.

In 2020, the TotalEnergies Foundation continued with to roll out the VIA program to educate young people in road safety, mobility and citizenship in France, India, Kenya, Myanmar and Romania. It partnered with NGO Yours to support the Global Youth Coalition for Road Safety following its support for the World Youth Assembly for Road Safety in February 2020 in Stockholm. TotalEnergies Foundation has also stepped up its efforts in Africa with two new partnerships: with NGO Amend, which works with motorcycle taxis, and with NGO Global Alliance, to increase the capabilities of African NGOs involved in road safety.

Climate, coastal areas and oceans

Global warming is a major issue. The third priority of the TotalEnergies Foundation program is climate and the environment. Since 2018, it has been dedicated to protecting sensitive ecosystems, especially forests, by means of measures to encourage natural carbon storage. During 2020, this priority was refocused on measures relating to coastal areas and oceans in order to distinguish it from the activities of the Nature Based Solutions business unit created in 2019 to invest in natural carbon storage projects.

Coastal areas and oceans pose major environmental and climate challenges and are the link between the Group’s various activities. Attention has therefore been redirected towards protecting coastal and ocean ecosystems, the development of knowledge sharing about the interactions between climate, coastal areas and oceans involving applied research experts, young people and the general public, and lastly to allow young people to discover coastal areas (field trips, training in careers at sea).

Within this framework, in 2020, the TotalEnergies Foundation continued the partnership initiated in 2018 with the Office National des Forêts, supporting a reforestation program in the dune forests on the Aquitaine coast. The TotalEnergies Foundation has also continued its support for the Tour du Valat research institute, mainly through a program to protect wetlands, as well as its support for the Conservatoire du Littoral coastal protection agency, primarily with a project to rewild the Métro dune in Landes, and a national exhibition on the French coastline titled “Rivages en mouvement (Shores in motion)”.

Cultural dialogue and heritage

Inequalities in access to culture reinforce social and regional divides. The fourth priority of the TotalEnergies Foundation aims to promote a sense of togetherness through culture and heritage, encouraging access for young people to cultural and artistic education, supporting contemporary creation by young people and protecting and passing on our heritage.

Within this framework, in 2020, the TotalEnergies Foundation supported 12 restoration projects providing employment for young people in France through its partnership with the Fondation du Patrimoine. In artistic and cultural education, 2020 saw the signing of eight new partnerships allowing the emancipation and integration into civil society of young people. Lastly, the TotalEnergies Foundation sponsored Africa 2020 in order to highlight the creative vitality of Africa and its young people (project postponed to 2020-2021 owing to the health crisis).

Taking action during the COVID-19 pandemic

As part of its efforts during the COVID-19 pandemic, the Group rapidly took action by ensuring business continuity and launching a number of community initiatives. In France, TotalEnergies provided care workers at hospitals and care homes with fuel vouchers worth €50 million. All over the world, subsidiaries launched a number of initiatives such as fuel donations, food donations and healthcare kits, as well as producing hand sanitizer and visors.

In addition, the TotalEnergies Foundation decided to allocate €5 million to fighting the COVID-19 pandemic, focusing on three main areas:

  • medical research (especially support for the Institut Pasteur);
  • emergency health aid (providing medical equipment for health workers and partnership with the French Red Cross in Africa);
  • help for the most vulnerable people (donations of essential products and initiatives to counter isolation among the sick and elderly using digital technology).

Employees also had the opportunity to donate the equivalent amount of some of their paid leave, topped up by the Group, to partner charities such as the Institut Pasteur, French Red Cross and Emmaüs via Break Poverty.

The TotalEnergies Foundation also guaranteed support for its partner charities to help them get through the crisis and continue to operate, in particular to ensure the continuity of teaching to young people (in France, for example, support for eight national education academies and the Break Poverty charity to provide computers for around 5,500 young people).

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