Total Aims for Net Zero
Total has announced its ambition to get to net zero emissions by 2050 globally across its production and energy products used by its customers.
A joint statement from Total S.A. and institutional investors – as participants in the global investor initiative Climate 100+1 – states that Total will achieve:
• Net zero across Total’s worldwide operations by 2050 or sooner
• Net Zero across all its production and energy products used by its customers in Europe by 2050 or sooner
• Sixty percent or more reduction in the average carbon intensity of energy products used worldwide by Total customers by 2050 (less than 27.5 gCO2/MJ) - with intermediate steps of 15 percent by 2030 and 35 percent by 2040.
This ambition is supported by the strategy to develop Total as a broad-energy company, with oil and gas, low-carbon electricity and carbon-neutrality solutions.
Total says the strategy has already been in action since 2015, with a six percent reduction already achieved.
Total confirmed its target of a renewable generation gross capacity of 25GW in 2025 and will continue to expand its business to become a leading international player in renewable energies. Total currently allocates more than 10 percent of its Capex to low carbon electricity, the highest level among the majors, it says. To actively contribute to the energy transition, Total will further increase its allocation of Capex in favor of low carbon electricity to 20 percent by 2030 or sooner.
Patrick Pouyanné, Chairman of the Board, said: “We recognize that the trust of our shareholders, and society more widely, is essential to Total remaining an attractive and reliable long-term investment. And only by remaining a world-class investment can we most effectively play our part in advancing a low carbon future. This is the reason why our people are already in action across Total, seeking opportunities to reduce our emissions, improve our products and develop new low-carbon businesses.”
Valentina Kretzschmar, Wood Mackenzie Vice President of Corporate Research, said: “Total has led energy transition efforts among the majors and is the largest spender, accounting for almost 60 percent of the European Majors' total M&A spend in renewables, or nearly $5 billion since 2016. The company's deeper commitment to meeting carbon targets shows its unwavering strategic direction towards diversification into clean energies, despite low oil prices and the implementation of cost-cutting measures across its oil and gas businesses.
“The move is a positive development for the energy transition within the oil and gas sector, which we expect will accelerate in a post-coronavirus world, especially in Europe. The EU Green Deal, as well as the UK’s aim to achieve net zero carbon by 2050, will continue to increase pressure on companies to commit to clean energy and develop carbon mitigation strategies.”
BP announced its intention to be net zero by 2050 in February.