17 investors with assets under management totaling around €1.1 trillion and green shareholder group Follow This have filed a climate resolution for the AGM of TotalEnergies SE, which takes place on May 26.
By an advisory vote, the resolution asks the company to align its 2030 scope 3 emissions reduction targets with the Paris Climate Agreement.
Whereas the world has declared to drive down greenhouse gas (GHG) emissions this decade, the energy transition from fossil fuels to renewables presents great opportunities for an integrated energy multinational.
We believe that TotalEnergies could lead and thrive in the energy transition by meeting the increasing demand for energy services while reducing GHG emissions to levels consistent with the global intergovernmental consensus specified by the Paris Climate Agreement.
Setting Paris-aligned targets covering Scope 3 is paramount, because they account for over 90% of TotalEnergies’ total Scope 1, 2, and 3 emissions.(1) Targets for 2030 are also crucial: the Intergovernmental Panel on Climate Change (IPCC) stated that “unless there are immediate, rapid and large-scale reductions in greenhouse gas emissions, limiting warming to close to 1.5°C or even 2°C will be beyond reach.”(2)
Because the company’s existing 2030 targets covering Scope 3 are not Paris-aligned, we support the company to advance these targets.
As shareholders, we understand this support to be part of our fiduciary duty to secure the company’s long-term interest and to protect all our assets in the global economy from devastating climate change; limiting global warming is essential to risk management and responsible stewardship of the economy.
Ahead of its 2022 AGM, TotalEnergies’ board of directors refused to put a similar but binding shareholder resolution to a vote. Given this refusal, the investors have decided this year to file a consultative resolution. While a consultative resolution is non-binding, it allows investors to send a clear signal to the company by expressing their view on its climate transition targets.
TotalEnergies’ targets are not Paris aligned
The company’s current targets covering Scope 3 for 2030 are not yet Paris-aligned; it will not lead to large-scale (net) reductions in absolute emissions in this crucial decade.
TotalEnergies itself anticipates almost no change in absolute Scope 3 emissions by 2030 as a consequence of its intensity target; TotalEnergies’ CDP (Carbon Disclosure Project) Climate Change response states that the “Lifecycle carbon intensity of energy products” will lead, in 2030, to a “% change anticipated in absolute scope 3 emissions” of “2.5”.(3)
The same observation can be made on the company’s current absolute target covering scope 3 for 2030 as the Company’s CDP Climate Change response states that the “target for 2030 of reducing its global Scope 3 emissions” will lead, in 2030, to a “Targeted reduction from base year (%)” of “3”.(4)
Investors are encouraged to vote in favour of this resolution
It is in the best interest of investors to support TotalEnergies to align its 2030 scope 3 targets with the goals of the Paris Agreement. Advancing this target will allow TotalEnergies to invest accordingly to drive down emissions, thereby safeguarding the long-term future of the company and the global economy.
(1) “About 90% of petroleum product emissions occur when those products are used.” in Reducing Scope 3 emissions, together with society in the company’s Climate change-related challenges.
(2) IPCC: “The report […] finds that unless there are immediate, rapid and large-scale reductions in greenhouse gas emissions, limiting warming to close to 1.5°C or even 2°C will be beyond reach.” Climate change widespread, rapid, and intensifying – IPCC — IPCC.
(3) TotalEnergies – Climate Change 2022: Target reference number: Int 2 – Lifecycle carbon intensity of energy products used by customers (page 27 of 80) 2022 TotalEnergies – Climate Change 2022 – totalenergies.com.
(4) TotalEnergies – Climate Change 2022: Target reference number: Abs 4 – Lifecycle carbon intensity of energy products used by customers (page 21 of 80) 2022 TotalEnergies – Climate Change 2022 – totalenergies.com.