TotalEnergies has unveiled an accelerated strategy to deal with its carbon emissions, with a more ambitious Scope 3 target
As part of its strategy to reach net zero by 2050, the French supermajor aims to reduce emissions related to sales of petroleum products (Scope 3) by more than 30% by 2030, compared with 2015 levels.
It is also expanding its ambition with targets to reduce methane emissions — by 50% from 2020 levels by 2025, and by 80% from 2020 levels by 2030 — to move towards zero methane.
“This ambition is backed by a clear, disciplined investment policy,” the company said, with $13 billion to $16 billion of annual spending planned for the next four years.
Between 2022 and 2025, half of investments will be dedicated to growth of energies supply.
Three-fifths of this capital will be dedicated to developing decarbonised energies (most for renewables and electricity, the rest for biofuels, biogas, hydrogen and e-fuels) and two-fifths to further development in gas — mainly liquefied natural gas — to replace coal in electricity production.
The other 50% of investments will be dedicated to maintaining and adapt the existing capacities of TotalEnergies’ worldwide upstream and downstream oil and gas facilities.
Of this amount, 60% will be dedicated to maintenance and 40% to new low-cost, low-emission fields and exploration “to fight against the natural decline of the fields and maintain oil production”.
By 2050, TotalEnergies said 50% of its energy production will come from renewable electricity, 25% from new decarbonised molecules from biomass (biofuels and biogas) or renewable electricity (hydrogen and e-fuels); and 25% from oil and gas, “whose residual Scope 3 emissions from its customers of about 100 million tonnes of carbon dioxide equivalent will be fully captured, recycled or offset”.
At the end of 2021, the company had 10 GW of installed capacity for renewable electricity generation and more than 6 million electricity customers. Renewable and electricity accounted for 25% of its total investments last year, exceeding its initial target of 20%.
LNG sales increased 10% last year to reach 42 million tonnes, 99% of which went to countries with a net-zero pledge.
TotalEnergies also acted in 2021 to lower its Scope 1, 2 and 3 greenhouse gas emissions, reducing the share of petroleum products in its sales mix to 44% (from 65% in 2015) and lowering Scope 3 greenhouse gas emissions related to petroleum products used by its customers by 19%.
In addition, it said it achieved “a very significant” 20% decrease in emissions from its operated facilities (Scope 1 and 2) compared with 2015 and a 14% reduction in the carbon footprint of the products sold in Europe.
TotalEnergies’ target is for a 40% reduction in net Scope 1 and 2 emissions by 2030 compared with 2015.