TotalEnergies: General Assembly in favor of the Climate Strategy – 05/25/2022 at 15:38

(AOF) – The joint general meeting of TotalEnergies shareholders adopted all resolutions approved by the Board of Directors. The Plenary also issued and complements the Sustainability and Climate Advisory Opinion on Sustainability and Climate – 2022 Progress Report, reporting on and complementing the progress made in implementing and complementing the Company’s ambition for sustainable development and the energy transition towards carbon neutrality by 2030.

Shareholders voted in favor of the advisory resolution proposed by the Board by a large majority, with 89% of the vote, to confirm the vote in 2021 as well as the strategy proposed by the Board.

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the main points

– Integrated 3 . power pack

The tenth

International Oil Company, second gas company and world number one in solar energy with Sun Power;

– $141 billion in activity organized into 4 branches: 45% in marketing and services (distribution networks, etc.), 40% in refining and chemicals, 11% in renewables, gas and electricity, and then exploration-production.

– an economic model for the transition in ten years to a multi-energy group, producing oil and liquefied natural gas (LNG), renewable energies, electricity, hydrogen and biomass;

– open capital (6.4% owned by employees), the 12-member board of directors is chaired by Patrick Boyani, who is also CEO;

A strong balance sheet with $104 billion in equity, $15.8 billion in free cash flow and a debt ratio of 15.3%, well below the 20% target.

Challenges

– Strategy 2020-2030 to respond to the challenge of energy transition, more energy, – Emissions: 30% growth in energy production, 50% renewable electricity, 50% LNG, lower share of oil from 55 to 30% / change in Distribution of sales – 30% of petroleum products, 50% of gas, 15% of electricity and 5% of biomass and hydrogen/discipline in investments – 13 to 15 billion dollars annually during 2022-2025, of which 50% is allocated to new energies – Sources renewable energy and electricity – and 50% to natural gas;

One Tech-led innovation strategy, which was awarded $850 million to 18 R&D centers: 3 themes: Industrial, Development and Support / 5 Programs: Production, CO2, Sustainability, Operational Efficiency Upstream and Downstream, Polymers, Fuels and Lubricants / Recycling and Biofuels / Plant digital to achieve $1.5 billion in savings by 2025;

– Environmental strategy: by 2050, carbon neutrality for collective operations, neutrality of products used by customers in Europe, a reduction of 60% or more in the carbon intensity of products used by customers outside Europe;

– 4 areas: growth in gas value chains (natural, biogas, hydrogen), low carbon electricity (annual envelope of 1.5 to 2 billion dollars), low break even oil and biofuels, and finally in activities that contribute to carbon neutrality (natural wells, forests, etc.) / Solar and Renewable Energy: 25 gigawatts capacity by 2025 / $400 million carbon fund invested by 2025;

– in renewables and electricity, the portfolio capacity is 35 GW by 2025, including +20 GW guaranteed under long-term purchase contracts;

– Industrial concession in oil production at a point equivalent to -20 dollars / b.

Challenges

Sensitivity to the price of a barrel of oil and dollars, an increase of $10 a barrel has an impact on operating profit of $2.7 billion. – a decrease of $ 10 affected him by $ 100 million;

– exposure to geopolitical risks in Africa (30% of the group’s production);

Impact of the Russo-Ukrainian War: Cessation of capital contributions to new projects and the Arctic Project, cessation of oil and diesel purchases, maintenance of stakes in Novatek (19.4%), Yamal (20%), Arctic LNG (10%) and Terneftegaz (49%) ), its sale will enrich Russian investors and preserve the supply of liquefied natural gas in Yamal;

Hydrocarbon production prospects for 2022 rise 2% with higher selling prices, renewable energy and electricity capacity of more than 16 GW thanks to earmarked investments of $3.5 billion (of total investment), refining contribution (petrochemicals, biofuels and electric mobility) of €6 billion to free flow cash.

Pressure major oil companies to achieve carbon neutrality by 2050

About two dozen institutional investors, such as Allianz or Caisse des dépôts, have defined a climate reporting standard to assess the ability of major oil and gas companies to achieve carbon neutrality targets by 2050. These institutional investors are members of the Groupe d Investors on Climate Change (IIGCC). Companies must comply and report on their performance on a range of indicators, such as capital expenditures or governance. The implementation of these requirements will be tested with various oil and gas companies such as BP, Eni, Repsol, Shell or Total for subsequent application to other companies in the sector.

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