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Total maintains commitment to zero emissions, but details are difficult
GLOBAL
TOTAL has maintained its pledge to achieve net- zero emissions by 2050.
This commitment comes as the French super-major announced a 35% net fall in its first-quarter profits to $1.78bn and kept its divi- dend level at $0.66 per share.
Cash flow fell by 31% year on year to $4.5bn, driven by a 30% average fall in oil prices across the quarter.
Total published a joint statement on its net zero policy with Climate Action 100+, which represents investors, on May 5.
In the document, Total outlined its aims to achieve Scope 1+2 net zero emissions, which includes the company’s own global operations, by 2050.
It also commits to net zero for its Scope 1+2+3 emissions, which count the emissions created by the consumption of its energy products by customers, not just emissions from Total’s own activities, in Europe alone by 2050.
In terms of renewables, it aims to have 25 GW of green generating capacity, mainly solar and wind, by 2025.
The company said 10% of its capex was cur- rently spent on low-carbon electricity, the high- est level among the majors. It aims to raise this to 20% by 2030 or sooner.
The company confirmed its existing targets to reduce emissions to under 40mn tonnes by 2025, and to reduce them further beyond that date. It also aims to reduce the carbon intensity of its products used by customers by 15% by 2030, 40% by 2040 and 60% by 2050.
Total said it was committed to carbon pricing, and would help other companies and countries to reach net zero as well.
However, the shareholders’ pressure group
Share Action said that Total’s net zero ambitions would not bring the company into line with the Paris agreement.
“Total’s new climate strategy falls short of the ambition required by oil and gas companies to meet the Paris goal of limiting global warming to 1.5C,” the group said.
The group stressed that the Scope 3 zero emission only applied to Europe, where gov- ernments are already committed to net zero. It now needed to extend its Scope 3 commitments worldwide in order to meet the Paris goals.
“If Total wants to be considered a leader, it needs to expand its ambition to countries that have not yet committed to net zero by 2050,” the group warned.
Total has been following a strategy of invest- ing in gas and renewables in a bid to reduce its emissions and to promote low-carbon energy.
“While responsibly taking on the short-term challenges, the group continues to implement its medium and long-term strategy,” said Patrick Pouyanné, Total’s chief executive.
Total also said it would cut capital spending by 25%, an increase from its previous plans, announced in March, to reduce this outlay by 20%. It will also cut a further $1bn in costs.
Oil and gas production is now forecast to fall by 5% to 3mn boepd in March.
Pouyanné added that the company antici- pates a protracted period of low oil prices,
BP, Royal Dutch Shell and Total have all now committed to becoming net zero companies. Despite any shortcomings in their strategy, this is a huge shift in the global energy landscape, with all three European energy majors moving onto a greener path.
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w w w . N E W S B A S E . c o m Week 18 07•May•2020
