To The Moon

By 2050, TotalEnergies would produce:

• About 50% of its energy is in the form of low-carbon electricity with the corresponding storage capacity totaling about 500 TWh/y, on the premise that it develops about 400 GW of renewable capacity,

• About 25% of its energy, equivalent to 50 Mt/y of decarbonized fuels in the forms of biogas, hydrogen, or synthetic liquid fuels from the circular reaction: H2 + CO2 e-fuels,

• About 1 Mb/d of oil and gas (about a quarter of the total in 2030, consistent with the decline envisaged in the IEA’s Net Zero Scenario), primarily liquefied natural gas (roughly 0.7 Mb/day, or 25- 30 Mt/y) with very low-cost oil accounting for the rest. Most of that oil would be used in the petrochemicals industry to produce about 10 Mt/y of polymers, of which two-thirds would come from the circular economy.

That oil and gas would represent Scope 1 residual emissions of about 10 Mt CO2e/year, with methane emissions almost eliminated (to below 0.1 Mt CO2e/year). Those emissions would be offset in full by projects using nature-based solutions (natural carbon sinks).

1. Energy Management

As an integrated oil and gas company, the majority of TotalEnergies' product portfolio comprises petroleum products that are incompatible with the need to tackle global climate change. Yet, the company has increased the share of natural gas in total hydrocarbon production from 35% in 2005 to about 47% in 2021 and expects to increase the share of natural gas in the sales mix to 50% by 2030. The company engages in several initiatives and fields of business that have the potential to contribute to the achievement of sustainable development objectives. At the end of 2021, the company had a gross renewable electricity generation capacity of more than 10 GW. TotalEnergies has the goal of expanding the power generation capacity from renewables to 35 GW by 2025. Additionally, the company promotes the development of alternative fuels such as second-generation biofuels and, through its 'Total Ecosolutions Program,' the development of products and services with environmental benefits. The company has established the target to increase the net sales share of low-carbon businesses including renewable energies, energy storage, and bioenergy from 0.5% in 2015 to 20% in 2035. Furthermore, TotalEnergies has developed the 'Total Access to Energy' program, a source of initiatives for energy solutions adapted to underprivileged populations. The company aims to sell five million solar lamps in Africa and reach 25 million people on the continent by 2025.

1. Social Assessment

1. Labor Practices

TotalEnergies’ Vigilance Plan is based primarily on the Code of Conduct, which defines the company’s values, including safety and respect for others, and their application to human rights, the environment, and people’s health and safety.

The Code particularly sets forth TotalEnergies’ compliance with the following international standards:

• The principles of the Universal Declaration of Human Rights,

• The United Nations Guiding Principles on Business & Human Rights,

• The principles set out in the International Labor Organization’s fundamental conventions

• The principles of the United Nations Global Compact,

• The OECD Guidelines for Multinational Enterprises, and

• The Voluntary Principles on Security and Human Rights, or VPSHR.

The Code of Conduct, which can be accessed on TotalEnergies’ website, is aimed at all employees and external stakeholders (host countries, local communities, customers, suppliers, industrial and commercial partners, and shareholders).

1. Supplier Auditing

The Fundamental Principles of Purchasing (FPP) set out the commitments expected from suppliers in various domains, including human rights and safety in the workplace. A company directive reaffirms the obligation to annex the FPP or to transpose them in the selection process as well as in the contracts concluded with suppliers of goods or services. The prevention of risks relating to working conditions, especially forced and child labor in the supply chain is a major area of concern and one of the company’s commitments. In this context, the company is implementing a program of engagement and assessment of its priority suppliers in these fields. TotalEnergies assesses its suppliers in terms of respect for human rights at work through on-site audits carried out by an independent third party. The company's objective is to assess the performance of its 1,300 priority suppliers by the end of 2025 in terms of sustainable development (human rights and working conditions, environment, and climate) using assessments covering all these aspects. Amongst these 1,300 priority suppliers, 500 are those suppliers that account for more than 50% of the company’s expenditures on goods and services, and 800 are identified as those representing the highest risk in terms of human rights and the environment in view of their field of activity and the countries where they operate. In 2022, 200 suppliers were audited, and an audit plan for 2023 targeting 300 suppliers was launched. In total, 430 high-risk suppliers in terms of human rights have been audited since 2016. These audits covered 160,000 suppliers' workers worldwide in 77 countries. 181 suppliers required the implementation of action and monitoring plans, of which 53 have been fully completed (validated by a follow-up audit) - positively impacting the working conditions of more than 14,000 of their employees. 128 suppliers are being monitored. A 2023 audit plan, targeting 300 suppliers, was defined in 2022, with the target to achieve 1,300 suppliers audited by the end of 2025.

1. Equity, Diversity & Inclusion (DEI)

The diversity of its employees and management is crucial to the company’s competitiveness, appeal, and capacity for innovation. TotalEnergies promotes an inclusive corporate culture at the highest level by the Company Diversity and Inclusion Council, which is chaired by a member of the Executive Committee. TotalEnergies intends to propose an inclusive working environment to create collective conditions that allow everyone, whoever they are, to assert their personality, ideas, and energy to bring the best of themselves to the common project and promote the development of everyone's potential. The various opinions and career paths yield innovative solutions and new opportunities. Thanks to its motivated, enterprising workforce, the company can carry out ambitious projects and provide every employee with the opportunity to give meaning to their work and find professional fulfillment. The company boasts genuine human potential with nearly 160 nationalities represented in its workforce, a presence in nearly 130 countries, and more than 740 professional skills. In order to continue the existing momentum, the Diversity roadmap sets out the targets for 2025 on gender balance and internationalizing management bodies and senior management:

• 30% of women in the Executive Committee (25% in 2022),

• 30% of women in the G70 (32.9% in 2022),

• 30% of female senior executives (27.5% in 2022),

• 30% of female senior managers (23.8% in 2022),

• 45% of non-French nationals’ senior executives (37.4% in 2022),

• 40% of non-French nationals are senior managers (34.2% in 2022).

Moreover, the company has a long-standing commitment to promoting equal opportunity, diversity, and inclusion, which constitute, for everyone, a source of development where only expertise and talent count. In 2018, the company decided to adhere to the Global Business and Disability Network Charter of the International Labor Organization (ILO) and is gradually implementing these principles in its subsidiaries.

1. Governance Assessment

1. Board Structure

Regarding TotalEnergies’ governance structure, the board chair, Patrick Pouyanné, is not independent. However, a lead independent director has been appointed to offset this concentration of power (as of May 11, 2022). Furthermore, most of the board members are considered independent. The company has established board committees in charge of audit, remuneration, and nomination, all predominantly comprised of independent board members. The company discloses its remuneration policy, as well as the compensation received by executives, and the remuneration policy provides for long-term incentives, which could facilitate sustainable value creation. The company has established a board-level committee responsible for sustainability matters, with half of its members being independent (as of July 27, 2022). Up to 45% of the short-term variable remuneration of the CEO depends on the company’s performance in occupational safety, diversity, carbon emissions, and energy efficiency and the company's position in rankings published by non-financial rating agencies. TotalEnergies has established a code of conduct and additional business ethics policies stipulating comprehensive rules regarding essential elements such as corruption, conflicts of interest, and insider dealings. Adequate compliance mechanisms are in place, including employee training on code provisions, compliance audits, risk assessments, and basic third-party anti-corruption due diligence.