Professional Documents
Culture Documents
Our ability to understand the expectations we create and to meet them head on should help us.
Christophe de Margerie
evelopment, rising demand for energy and climate change: what we do lies at the intersection of two of the greatest challenges facing the world today and tomorrow energy supply and environmental protection. Our responsibility as an energy producer is to manage these crucial and apparently conicting challenges as best we can. In practical terms, that means managing our energy use and offering our customers ways to do the same. More importantly, it also means inventing a new energy model that combines fossil fuels with low-carbon energy sources, to satisfy energy demand without interruption while at the same time protecting the environment.
Our activities, our size and our nancial strength understandably raise high expectations, in areas as various as employment, the environment, local development, safety, access to energy, nancial transparency, ethics and more. We must acknowledge and take heed of these expectations. Doing so is a moral and civic duty and, more prosaically, an industrial and business one. The energy environment is changing. Producing countries are increasingly reluctant to grant access to their reserves and competition among oil operators is intensifying as newcomers from major emerging economies ramp up their activities, among other developments. That means we have to stand out from everyone else to continue enjoying access to resources, which is whats needed to generate sufcient earnings to keep boosting our capital expenditure, especially on R&D. This is the only way for us to secure the future of energy and tackle climate change. In other words, a key determinant will be our ability to listen, explain and take into account in short, to have transparent, constructive conversations with our stakeholders. That is, everyone directly and indirectly concerned by our projects, including employees, neighbors, customers, authorities, associations and shareholders. The human factor is critical to this conversation. Through our personal conduct and people skills, we can lay the groundwork for balanced relationships, convince producing countries and their national oil companies that we add value, and in general demonstrate, in every host country, that our projects stimulate economies while respecting peoples rights and protecting the environment.
Energy supply and environmental protection our responsibility as an energy producer is to manage these crucial and apparently conicting challenges as best we can.
But our responsibility doesnt end there. With nearly 97,000 employees, a presence in every region of the world and large-scale, value-creating projects, we rank among the top 20 enterprises worldwide.
(1) Christophe de Margerie is expected to be elected Chairman of the Board of Directors following the Annual Shareholders Meeting on May 21, 2010.
TOTAL / 1
Yet this is no easy task: we must deal with a growing number of stakeholders and the sometimes-conicting requirements that go with them. At times we have to make tough decisions. Im thinking in particular of the changes at our Flandres renery in northern France. Im also thinking of our investments in oil sands projects in Canada, which we believe are vital for meeting energy demand over the next few decades. However, assuming our responsibilities also means understanding why people criticize both our decisions and our projects. In the case of the Flandres renery, we have made a commitment not to lay anyone off. We have also pledged that, aside from the changes planned at Flandres, we will not shut down or sell off any French reneries in the next ve years.
In Canada, we are bringing all our knowledge and expertise to bear to nd technologies that will shrink the environmental footprint of our oil sands projects. This is one of the reasons why we have opened a research center dedicated to the same issues in Calgary and are working closely with institutional, scientic and industrial partners. We are aware that we still need to improve further. Listening, discussing and opening our minds to other ways of seeing and doing things are effective ways to move forward. It is because we rmly believe they are that we have put together this report. By answering your questions about some of our chosen directions, we hope to show you what it is we do and where we mean to go. But even more than that, we want to open up the dialogue, invite you to ask us questions and tell us about your expectations and what you dont understand. In short, to help us do better. Because the world is changing and we have to change with it, before it, in our interest and everyone elses. We hope you enjoy our report.
However, assuming our responsibilities also means understanding why people criticize both our decisions and our projects.
OUR ACTIVITIES
TOTAL / 3
Q01
How can Total satisfy rapidly growing energy needs despite rising carbon constraints? Can the business model adapt to carbon at 25, 75 and 100 per ton?
VICKI BAKHSHI
Associate Director, Governance & Sustainable Investment team, F&C Investments, a European fund manager
Answer: Energy demand is tied to economic development and will continue to grow. All types of energy will be needed to meet this demand. But oil and gas will still dominate in the coming decades. That will require substantial investment. Our roadmap for this collective challenge involves meeting this demand while tackling climate change and promoting development, in particular for the most disadvantaged. We have set very specic objectives to reduce our climate impact. A large percentage of our R&D spending is focused on energy efciency and carbon capture and storage. All our projects integrate carbon cost and our business model takes into account increases in this cost. But we feel it is essential that the cost be borne fairly by all stakeholders, without distorting competition at the global level. Thats why we want to see a fair, global agreement on climate in the coming years.
2.3
million
barrels of oil equivalent per day: Totals oil and gas production in 2009.
0.5
tons
of carbon equivalent: average industry emissions per barrel of oil, of which some 85% from end use and around 15% from production and rening.
33.5%
percentage of greenhouse gas emissions related to oil and gas, of which around 85% during product use.
15%
reduction in our direct greenhouse gas emissions from operated activities in 2015 from 2008 as a result of ongoing initiatives.
TOTAL / 5
Pazor is a gigantic industrial jigsaw puzzle whose pieces have been manufactured locally in Angola, but also in South Korea and Norway, like this subsea separation unit.
(1) See page 15. (2) Parts per million, the reference unit used to measure the concentration of greenhouse gas in the atmosphere.
integrated projects we manage, on time and at best cost, in accordance with our performance quality requirements. These strengths will also be decisive in the future, positioning us to work on increasingly complex developments that are subject to ever-stricter safety and environmental requirements, such as in the extreme conditions of the Caspian Sea or Russian Arctic.
Leader of the Yemen LNG project and partner in Qatargas 2, two plants that came on stream in 2009, Total will become the worlds second-ranked liquefied natural gas producer in 2010. We are committed to an ambitious LNG strategy warranted by the need to meet long-term demand. We are strengthening our presence across the value chain, from liquefaction and shipping to regasification and marketing.
TOTAL / 7
and Total (see page 60), is now under way. In Madagascar, the Bemolanga eld is currently being appraised. The acquisition of an interest in U.S. company Chesapeakes assets in late 2009 brings Total new skills and knowledge in shale gas, while our stakes in Algerias Timimoun and Ahnet licenses will add to our experience with tight gas reservoirs, gained at several sites, including Aguada-Pichana in Argentina.
Unconventional oil and gas: key potential resources to meet future demand
Oil resources
~ 3 ,000Bboe* 100 years 70 years 50 years 33 years of production at current rate
Gas resources
Unconventional resources Oil shale shale gas, coal bed methane, tight gas Oil sands New discoveries and increased recovery rate Identied resources Already produced
other elds. A partner of six of national oil company ADNOCs 14 subsidiaries, we also actively train young U.A.E. operators in cooperation with local universities. In another example, we are broadening our collaboration
with Qatar across the gas value chain, from production through liquefaction, as well as in the petrochemical eld.
BERNARD SEILLER Vice President, R&D, Total Exploration & Production Why is increasing recovery rates strategic to meet demand? The recovery rate for an oil eld averages about 32%, but ranges widely, from around 8% for certain extra-heavy oils to some 70% in North Sea elds. A 1% increase in the recovery rate on a planetary scale would yield another 60 billion barrels, or two years of global consumption at
current rates. To meet this challenge, Total deploys an arsenal of techniques. For example, since 2009, after ve years of research, we have been conducting the rst-ever tests of deep offshore polymer injection, in the Dalia reservoirs in Angola. Extending the use of this chemical process to the entire eld, planned for 2014, is expected to boost reserves recovery by about 5% over 20 years. How do you identify the resources of the future quickly and accurately? We are continuing, of course, to work on new geophysical algorithms and new geological concepts. But its just as important to increase synergies among our geosciences capabilities geology,
geophysics, reservoir engineering and geoinformation. To help us better discern the outlines of oil plays, build more robust, consistent models, reduce uncertainties and automate repetitive tasks, we are currently building an integrated modeling chain that is a precursor of the simulator of the future. R&D also plays a key role in responsibly developing unconventional resources. Shale oil, which consists of solid oil trapped in impermeable rock, is one of the oil industrys next frontiers. Through our interest in American Shale Oil (AMSO), we have since 2009 participated in a research and demonstration program to make shale oil production feasible within the next 20 years. Slated to be up and running in
2011, the pilot in the U.S. state of Colorado will ne-tune the technologies now being considered, mainly in terms of energy efciency and environmental friendliness. The list includes bottomhole retorting, in-ground carbon mineralization and the close monitoring of aquifers in the area.
Eleven million hours worked in Nigeria, out of a total of 32 million, to bring the Akpo field on stream in 2009. We once again demonstrated our commitment to supporting local businesses when developing Akpo, the latest deepwater giant in the Gulf of Guinea. Our next projects in Nigeria, Usan and Egina, will boost local content still further.
TOTAL / 9
Q02
How will Total take a leading role and thrive in a zero-emission economy?
PAAL J. FRISVOLD
Chairman of the Board, Bellona Europa, an NGO specialized in energy and climate change
Climate Impacts
Answer: The climate change challenge requires more intelligent, more frugal use of energy resources and substantial spending on innovative technologies. The rise of a low-carbon economy will also create growth opportunities, for us included. But the International Energy Agencys best forecasts show that even if the international community manages to agree on a very aggressive policy of greenhouse gas mitigation, oil and gas will continue to dominate for at least the next two decades, especially in specic applications such as fuels. Were therefore stepping up our efforts to optimize our processes, offer more environmentally neutral products and services, and expand our energy solutions to include new, low-carbon sources. We are also helping to develop carbon capture and storage processes, which will play a pivotal role in containing carbon emissions from industry and power plants. However, it will be many years before they are widely deployed.
55
million
50%
reduction in 2014 from 2005: our target for emissions associated with gas aring in our exploration and production operations.
608
million
TOTAL / 11
14%
Agriculture
13%
Transportation
85% Product
use
12.5%
Other GHGs, other
8%
Building
33.5%
Oil and gas worldwide
7.5% 23%
Coal
5%
Industry
15% Production
and rening
100
Climate Impacts
In our opinion, environmental taxes need to be discussed jointly by governments, so that they can incentivize changes in behavior without distorting competition.
all of our partners, meaning this target cannot be met before 2014.
Greenhouse gas emissions from Total-operated sites worldwide: 55 million metric tons per year of carbon equivalent
4% 11%
Chemicals Other
17%
Processes
6% 3% CH ** 4
N2O*
29%
Flaring
40%
Downstream
49%
Upstream
50%
Combustion
91%
CO2
By business
By source
By type of gas
* Nitrous oxide. ** Methane.
TOTAL / 13
period 2007-2012. Since 2007, site and subsidiary action plans have been guided by energy balances. In 2009, E&P prepared technical guides that will add to the tools available to petroleum architects, technology specialists and operators. Another initiative compared seven oating production, storage and ofoading vessels (FPSO) in production or design, highlighting the most critical choices, including turbine type, heat recovery and uid separation, in order to optimize future developments. Similar studies are looking at sour gas elds and gas liquefaction plants. Petrochemicals is on track to boost the energy efciency of its operations 2% a year to 2012. The styrene unit in Gonfreville, France, was upgraded, making it the worlds most energy efcient. Several other major projects were initiated in 2009, including cogeneration in Feluy, Belgium; new furnaces and boiler retrots in Gonfreville; and a more efcient steam turbine in Antwerp, Belgium. And Petrochemicals is preparing for the post-2013 era, to further reduce the energy used in its operations. Rening teams are not to be outdone. Energy use accounts for nearly 60% of the business operating costs. A comprehensive plan is being deployed, involving unit optimization, furnace upgrading and steam loss reduction, to trim energy use by 1% annually at all European reneries to 2012. The projects under way installation of a Packinox heat exchanger, optimizing heat recovery in a distillation unit will improve energy efciency by anywhere from 0.8 to 3 percentage points at sites, depending on what is being done.
In 2009, we further expanded our line of fuel economy lubricants, now the most complete in the market. The lines car engine oils improve fuel efciency by at least 2.5%.
Total Petrochemicals Lumicene allows our customers to develop significantly improved products in their own markets. The Lumicene range includes polyethylene resins for film, rotational molding, blow molding, artificial turf, and caps and closures, as well as polypropylene grades for fibers, film, injection molding and medication applications. These higher-density polymers require less feedstock to produce and offer a better greenhouse gas balance.
Climate Impacts
procedures were set up under the scrutiny of independent experts to assess results and impacts.
Source: IPCC.
TOTAL / 15
Q03
Parliamentary State Secretary to the German Minister for the Environment, Nature Conservation and Nuclear Safety
Alternative Energies
Answer: Were securing the future of energy here and now. Renewable energies encompass a wide array of resources that will be able to meet varied demand. We want to leverage our expertise to promote their development. However, these resources will only be able to meet a tiny fraction of global demand in 2030. Thats why, alongside our solar energy and biomass activities, we are also exploring nuclear power generation. These focuses reect our determination to increase the supply of non-carbon-emitting energy, through fully mastered commercial processes, to meet growing energy demand worldwide.
X2
increase in our subsidiary Photovoltechs total photovoltaic cell production capacity in 2010.
capacity of Abu Dhabis planned world-class concentrating solar power plant. Total (20%) and partners Abengoa (20%) and Masdar (60%) submitted the lowest bid.
110 MW
TOTAL / 17
manufacture, installation and operation of photovoltaic modules and systems. Between 1983 and 2009, Tenesol installed more than 3 million square meters of panels worldwide. It operates two plants, one in Cape Town, South Africa, and the other in Toulouse, France, which recently tripled its capacity.
It will take the combined use of all types of energy to sustainably meet varied demand in 2030. We do not believe in a single, ideal, universal energy mix. But we are doing our part to nurture a necessary transition that will require more frugal, intelligent, flexible use of energy, starting now.
400
300
200
100
Solar, wind, other renewables Hydroelectricity Biomass excluding biofuels Biofuels Nuclear power Coal Natural gas Oil
2005
2030
Source: Total estimates.
(1) Terawatt-hours. (2) Megawatt-peak: 1 million peak watts. A peak watt, the unit used to rate the performance of photovoltaic panels, will deliver 1 watt of electricity under standard conditions of 1,000 W of light intensity per square meter and an ambient temperature of 25C.
Alternative Energies
the U.S. company to develop polymer-based lms for plastic solar cells, a third-generation photovoltaic solar technology. In this segment, as in others, we are leveraging our skills and expertise in carbon chemistry and specialty chemicals. Our subsidiary Sartomer is working with Konarka on adhesives to lengthen the life of panels.
concerns of all stakeholders in the areas of safety, security, radiological protection, environmental protection and proliferation. We have many assets we can leverage to achieve this. We have demonstrated our ability to design and operate very complex, capital-intensive units. In our core businesses, we think in terms of timeframes that span decades, as in the nuclear power industry. And we know how to satisfy the aspirations of our many host countries by developing their national energy potential and local talents. In May 2009, we acquired an 8.33% interest, alongside French electric utility EDF and GDF Suez, in the Penly European Pressurized Reactor (EPR) project in France, for which public hearings will be held in the rst half of 2010. We are also examining other opportunities in our host countries, in partnership with experienced operators recognized in France.
The photovoltaic solar panels installed in Lacq and Pau, France, in 2009 reect our commitment to promoting the diversity of solar solutions at our facilities. Taken together, the various projects represent a total investment of 15 million through end-2010.
TOTAL / 19
commercial production in 2016. We are also developing thermochemical conversion through our participation in the BioTfueL project, based on processes that combine feedstock gasication with synthesis reactions. The project is designed to validate the feasibility of producing advanced biodiesel from lignocellulosic biomass and fossil fuel resources. We are also involved in promoting dimethyl ether (DME), a clean gas that can be used as a vehicle fuel and a petrochemical feedstock. We are a member of a consortium that began testing bio-DME made from pulp residue as a truck fuel in Sweden in 2010. A more recent, promising avenue is producing new molecules from sugar using bacteria or yeast. The family of molecules that we know how to produce is growing fast. We are closely monitoring sugar conversion processes through our interest in Gevo, a U.S. start-up that is developing a proprietary technology to convert agricultural waste products into renewable, alcohol-based liquid fuels. Lastly, the use of microalgae, cyanobacteria and other phototrophic organisms present in water that can directly convert light and carbon dioxide into molecules holds out amazing potential. These phototrophic organisms change the environmental equation, because arable land is not needed to cultivate them. We are actively building our expertise in biotechnologies through partnerships with academic research institutions and start-ups.
Alternative Energies
VINCENT SCHACHTER Vice President R&D, Total Gas & Power Photovoltaic solar energy has environmental impacts. How do you factor them into the picture? Its one of our research focuses. Were working on a life cycle assessment (LCA) of the silicon process with IMEC and other
organizations. We want to minimize the environmental impact of the manufacture and use of photovoltaic cells, especially thin lm technology, by comparing alternative semiconductors such as copper-indium-selenium alloy. That has led us, for example, to rule out cadmium telluride (CdTe), because we dont feel that the absence of hazards during the product life cycle has been adequately demonstrated. Were also studying the long-term availability of these resources, as well as the durability of organic solar cells. End-of-life disposal of used modules is also becoming an issue. Thats why Total decided
to join PV Cycle, a voluntary take-back and recycling program for end-of-life modules set up by the photovoltaic industry in Europe. What does life cycle assessment offer the booming bioenergy sector? Were expanding our LCA capabilities in all of our businesses and partnering with the most proactive players in the eld. For instance, we have joined the United Nations Environment Programs (UNEP) Life Cycle Initiative and have endowed a chair at the Interuniversity Research Center for the Life Cycle of Products, Processes and Services
(CIRAIG) in Montreal, Canada. These initiatives give us access to the most sophisticated, robust methods and databases. Its the type of approach that guides our choices in planning responsible biomass use. Considerations such as competition with food crops, the amount of land required, farming conditions, health, yields and total carbon footprint must be analyzed across the cycle. Microalgae, for example, need neither arable land nor potable water to grow. But we still have a long way to go to evaluate all the impacts of this option, select the right species and make processes more competitive.
What is the best path to take from raw material to nished product, such as automotive and other fuels or chemical feedstocks? The process involves intermediate steps to convert the resource, depending on its type, to sugars, synthetic gases or fatty acids/triglycerides. Total maintains science and technology watch, conducts R&D, invests venture capital and integrates innovations into demonstration units and pre-commercial pilots to assess the various conversion options and develop the most promising.
TOTAL / 21
Q04
Total has a major impact on the regions economy, environment and employment. Are there any responsibilities in these three areas that Total will no longer assume in the future?
JEAN-CLAUDE WEISS
Social Responsibility
Answer: We have always assumed our responsibilities on all three fronts and will continue to do so in the future. In the Le Havre region, for example, we are investing massively to upgrade our rening and petrochemical sites. Several recent initiatives have mitigated their environmental impact, especially in terms of air emissions and water quality. Since 2008, both the Normandy renery and the Gonfreville-lOrcher petrochemical plant have introduced a more structured form of dialogue with neighboring municipalities and associations, so that we can work together to improve in all three areas. Trends in our markets have forced us to make tough decisions in recent months. In France and elsewhere, we have had to redeploy certain operations. We are doing everything we can to minimize the effects on employment and the local economy. But we cannot stand still. Continual adaptation is how we secure both our future as an industrial operator and the future of our host regions.
More than
8,250 45
people hired worldwide under long-term contracts in 2009.
Continue to invest to maintain the current and future competitiveness of our businesses, by anticipating market trends. Put our social responsibility and community support commitments into practice, by proposing appropriate solutions for employees affected by the restructuring of our operations and by helping to preserve the local contractor base.
million
spent over the last ten years to revitalize local labor markets affected by the restructuring of our operations.
of employees surveyed in 2009 would recommend working for Total to their friends and family.
78%
TOTAL / 23
Social Responsibility
for the European market, among others. It is therefore essential to continually boost the productivity and performance of world-class European hubs such as Gonfreville, to ensure their viability. That is the driving force behind the more than 200-million modernization plan announced in early 2009, which follows an earlier plan launched in 2006.
deterioration in the market. This resulted in temporary shutdowns or processing cutbacks at Port Arthur in the United States, Lindsey in the United Kingdom and Donges, Gonfreville and Dunkirk in France. Except for Dunkirk, where production was halted in September, all of the reneries were able to resume operations.
Total Dveloppement Rgional (TDR), a Total organization specializing in support for small businesses, is offering the benefits of its experience to socioeconomic stakeholders in and around Dunkirk, to perform an overall assessment of the region and look for solutions to save local jobs or even create new ones. Through complementary initiatives such as financial support for start-ups and acquisitions, export support, technical aid and skills sharing, TDR has helped around 1,000 small businesses in France in the last ten years.
TOTAL / 25
and support for each employee, none of whom will be laid off. Options include moving to another job onsite, transferring to another Total facility or taking early retirement. Total has also pledged not to close or sell any other renery in metropolitan France within the next ve years.
number of women and non-French nationals at every level of the organization. In France, almost 800 young people came on board in 2009 under apprenticeship or skills acquisition work-study contracts. Working with government authorities, Total created a community development fund for youth in April, with an endowment of 50 million through 2014. Its goals are to step up initiatives under way to promote equal opportunity at school, facilitate access to employment, and tackle the problem of social exclusion.
7.0%
North America
17.0% 28.2%
Europe excluding France South America
17.3%
Metropolitan France
4.4%
Other
other than France. Women accounted for close to a third of all new hires.
Social Responsibility
In China, where we employ more than 3,800 people, all businesses inclusive, we completed a market and insurance benets alignment study for our 20 subsidiaries in the country. A target plan covering death, accident and health benets was prepared with local staff and a call for tenders to select a single insurer was nalized, allowing us to capture economies of scale. The program will be phased in during 2010 and a special effort will be made to ensure that employees know about their new benets.
benets and enjoyable working conditions. The crisis served to highlight these advantages. Doesnt the uncertain future of the oil industry affect their sense of security? Yes, of course. The crisis, the debate about peak oil and the questions about climate change are all topics forcing Total to rethink its business model. Employee concerns about these issues have risen. They expect Totals senior management to demonstrate its ability to secure the future of energy and clarify strategy.
ANTOINE SOLOM Head of the Employee Relationship Practice at Ipsos Loyalty You are in charge of the Total Survey employee satisfaction poll. How has the crisis impacted the way Total employees perceive their company? It has brought feelings and perceptions to light. Employees talked about their motivation, condence in the future and well-being. Their satisfaction with their work situation is 16 points higher than the average for oil industry companies. Thats a lot. All over the world and by a large majority, they perceive their company as a refuge, providing them job security, signicant employee
TOTAL / 27
Q05
How will ongoing dialogue with employee representatives help improve safety?
REN JACQUOT
Safety
Answer: Improving safety is an ongoing priority and a continuous process that involves every one of us. We must all senior executives, managers, Total and service provider employees, and employee representatives advance together. Because of their familiarity with the local environment and their legitimate standing, members of local organizations for discussion and consensus building provide valuable input, both for safety and the analysis of accident causes. Dialogue with employee representatives at every level is an invaluable improvement driver. Thats why the Safety Inspection Task Force set up in 2009 (see following pages) began and ended each site tour with wide-ranging discussions with members of the Health, Safety & Working Conditions Committee. The task forces main ndings were reported to the members of the European and Central Works Councils at a special joint meeting in March 2010, at which it was agreed that regular progress reports would be made.
400
More than
455
More than
million
200,000 500
employees and contractors concerned.
million
TOTAL / 29
Sites presenting technological risks with SMSs audited using recognized protocols
76% 83% 88% 96%
10
9.5 7.4 6.0
4.4
3.9
2003
2004
2005
2006
2007
2008
2009
(target >95%)
Safety
11 experienced professionals inspected six reneries, two petrochemical plants, three fertilizer plants, one gas production facility and one natural gas storage facility in France. Over a ve-month period, they spoke to hundreds of people about seven focus areas, including how operations are managed, contractors and skills
management. In addition to producing reports for each individual site, the task force presented 58 practical recommendations designed to strengthen requirements for the most critical processes and their disciplined implementation across the Group.
GRARD ROUSSEL General Manager of the Normandy renery and head of the task force Where do you see most of the untapped potential for improving safety? Accidents happen when a number of safety barriers technical, organizational or human fail. We spend heavily to maintain the integrity of
facilities. Our organization and tools are robust. We must safeguard those strengths, but people remain the heart of the system. A better understanding of the complex relationship among technical, organizational and human factors is probably the main avenue for capturing further improvements. What were your recommendations to spur improvement? Ill mention one: encourage personnel, including service providers, to let us know about any problems they have applying procedures and get them more involved in improving them. Safety depends on following precise,
often demanding rules. Frontline employees nd rules easier to adopt when theyve helped write them. Managers must do more than just model exemplary behavior they must provide more direction and more leadership. Employees and people have to be discouraged from bending or breaking safety rules through closer supervision in the eld. What role do employee representatives play in this process? We must all move towards a common set of fundamental rules. In France, members of the Health, Safety & Working Conditions Committees are
already helping us get there. But here, too, we can do better, by stepping up dialogue, by making the initiatives deployed as a result of their own audits more intelligible, and by laying out the facts of problems so that we can nd solutions. When it comes to safety, managers, personnel and employee representatives are on the same page, focused on the same issues: risk management and an absolute priority on safety.
11%
Employee travel by road
21
36%
Site operations
fatalities in 2009 9 in site operations 8 in product transportation by road 2 in employee travel by road 2 during a seminar activity
51%
Product transportation by road
TOTAL / 31
integration of the best practices developed onsite, and the need for continuous dialogue between frontline employees and their supervisors. These conclusions largely echo the Safety Inspection Task Forces ndings.
Facilitating consensus building in France through dialogue on Technological Risk Prevention Plans
Total operates more than 60 sites in France covered by the European Union Seveso II Directive. Technological Risk Prevention Plans (PPRT) are drafted by the government to mitigate the effects of possible serious accidents by shaping land use around Seveso-classified facilities. In 2009, several sites kicked off the official phase of discussion and consensus building with the public, expected to last at least 18 months. The various local stakeholders are now accustomed to dialogue on the environmental impacts, risks, disamenities and socioeconomic benefits of our facilities. Volunteer organizations such as the Feyzin Refinery Neighbors Conference and the CLIE community advisory panel at the Provence refinery prepare stakeholders to discuss these plans, which raise strong, sometimes conflicting issues. Examples include the safety of people, local economic development and regional development. The strong turnout and involvement of elected officials and nearby residents in the meetings held over the course of the year are proof of that.
Safety
respond when safety rules are ignored? All of these examples reinforce a key idea: safety is not just for specialists. Although risk management requires ever-greater involvement across the management chain, each of us must, at our own level, incorporate it into the way we do our jobs.
PATROM DEPLOYMENT
TOTAL / 33
Q06
What can subsidiaries expect from the Group to help them handle sensitive cases as far as ethics is concerned?
JUDITH T. NAVARRO-DIPODIPUTRO
Ethics
Answer: Each employee must put into practice our commitment to integrity, respect for fundamental rights, and preventing bribery, corruption and fraud in their day-to-day decisions in the eld. Its an ongoing process. Totals Ethics Committee plays a key role by listening to and advising employees. Rules, procedures and whistleblowing processes are in place. To make sure everyone adopts them, we again stepped up our efforts in 2009, making management more accountable, providing training and deploying new resources designed specically for operational employees. We also participate in several multilateral initiatives that share the goal of promoting a broader embrace of high ethical standards. But it is through our own exemplary conduct that we can make the most decisive contribution in this area.
2,172 63
senior managers trained in 2009 through the Ethics and Business Seminar.
440,000 78
cases handled by our Ethics Committee in 2009, including 32 questions or requests for advice from employees and 31 case referrals.
TOTAL / 35
31 32
25
26 22 13
2007
2008
2009
In 2009, the Ethics Committee handled more questions and requests for advice than referrals. This was in keeping with its main role of preventing potential problems related to the application of our Code of Conduct. The figures given here are not exhaustive, because managers are on the front line when it comes to ethics issues, dealing with more than 200 cases directly.
Ethics
hygiene, safety and the environment. We also initiated a major project to dene more precisely the corporate social responsibility criteria governing procurement policy in our various operations.
To fortify existing lines of defense, in 2009 we laid the groundwork for a dedicated compliance program. More formal and prescriptive, it will be prepared and implemented by compliance ofcers at the corporate level and in each business, who are organized into a network. The program will be rounded out by stricter procedures, especially governing relations with agents and service providers, mergers and acquisitions, and corporate sponsorship and gifts. We are also interested in nding more effective ways to prevent fraud. To do this, we created a working group at end-2009 tasked with ranking risks in order of severity, coordinating everyone already involved managers, the Corporate Security and Audit Departments and the Ethics Committee and stepping up internal investigation capabilities, while protecting employees.
TOTAL / 37
Ethics
Danish Institute for Human Rights (DIHR), a globally recognized, independent organization.
self-administered checklist, known as the Human Rights Compliance Assessment (HRCA), is derived from the DIHRs full database and was tested in 2009 in Angola. Other tests will be conducted to provide additional feedback before we implement this innovative resource more broadly. Revamped to make it easier to work with and more relevant to our activities, the HRCA remains the property of the DIHR. As a result, it can be used by other extractive companies faced with similar issues and can serve as a model of best practice for the entire industry.
MARGARET JUNGK Director, Human Rights & Business Department, Danish Institute for Human Rights www.humanrightsbusiness.org What did revising the HRCA for Total entail? We began by mapping all of Totals activities and host countries. This gave us an overview of all the relevant human rights issues to be
covered by Totals policies and procedures. We then selected the most appropriate HRCA questions from a database of more than 300 to address those issues. The entire process was built upon a sliding risk scale, so operations in higher-risk countries would include a wider range of questions and recommendations. What did you gain from working with Total? The operations of a multinational company involve a huge variety of activities and stakeholders. Comprehensively applying a human rights tool to such a wide range of business
activities and political and economic contexts may seem like it only increases the scope of the challenge Total faces. But weve found that, in reality, this holistic approach focuses both Total and DIHR on solutions and the way forward. Knowing the whole range of risks makes them easier to understand and manage. How does DIHR interact with wider stakeholder groups to assist the promotion of human rights? As well as conducting strategic research and developing tools for businesses, DIHR works to further develop and promote international frameworks such as the United Nations Global
Compact, the Global Reporting Initiative (GRI), the OECD Guidelines, the International Finance Corporation (IFC) Performance Standards and the Global Business Initiative on Human Rights (GBI). We also strive to promote human rights in industry sector initiatives and collaborations, like the IPIECA Reporting Guidance and the expert meetings of development nance institutes. We conduct localized capacity building projects, and also chair the National Human Rights Institution Working Group on Business and Human Rights, a worldwide network devoted to addressing the impact of business on human rights.
Visits to Totals dedicated ethics intranet reect growing awareness across the company
400,000
300,000
200,000
100,000
Workshops for new hires, designed to promote Totals ethical values and vision.
TOTAL / 39
Q07
Environment
Answer: Environmental protection is our top priority. Our production and rening activities obviously have an environmental impact, and we are as distressed and concerned as everyone else when accidents occur. Thats why we do everything we can to shrink our environmental footprint. We ne-tune our practices to analyze our impacts in thorough detail so that we can manage them more effectively. Our teams strive to learn even more about the air, water, soil and biodiversity where we work, in order to protect them effectively, often working hand-in-hand with the scientic and research community. We are also continuing to invest in our facilities to keep reducing emissions. Lastly, we have all the resources we can to prevent accidental spills and be ready to respond when they do occur.
29%
23
milligrams
per liter: the hydrocarbon content of liquid efuent from Exploration & Production sites in 2009.
of environmentally sensitive sites (as dened in the Reporting Scope and Method section on page 66) were ISO 14001-certied at December 31, 2009.
89%
TOTAL / 41
At the same time, we are improving our employees ability to deal with crisis situations. Based near Marseille, France, the Fast Oil Spill Team (FOST) is one of Totals internal resources for responding quickly to water pollution incidents. The training courses for in-house and external response teams are certied Level 3 under the guidelines of the International Maritime Organizations International Convention on Oil Pollution Preparedness, Response and Cooperation (OPRC Convention). In 2009, we also provided a self-assessment tool to all Total sites that will allow them to bolster their spill response preparedness.
Safeguarding biodiversity
Factored in at every stage of our operations, biodiversity protection is a key component of our environmental strategy.
A MORE PROACTIVE APPROACH FROM PROJECT DESIGN TO SHUTDOWN
Safeguarding the often-vulnerable ecosystems in which we operate takes careful planning. From lagoons and the deep ocean to Arctic terrain and isolated desert to industrial areas, we keep getting better at it. We do this by expanding the circle of partners helping us to more clearly understand biodiversity issues and by adapting our procedures, such as conducting routine baseline assessments of impacts and regular monitoring over the life of projects.
23 2,413
135
2,409 19
1,957 433 Chemicals Downstream Upstream
pollution control equipment deployment exercises in 2009. These simulations provide hands-on experience for frontline teams that may have to respond to spills.
2,474
4,983
2007
2008
2009
Environment
Because protecting biodiversity in our operations entails targeted monitoring of the environments in which we operate, we have created observatories at ve sites representative of our businesses, including a recent gas project in Yemen, an operating renery in Feyzin, France, and a decommissioned chemical plant undergoing reclamation in Prmont, France. In so doing, we hope to promote discussion among everyone concerned experts, NGOs, local authorities and communities, and our frontline employees. In addition, we will be able to gather more reliable data on a long-term basis in order to more effectively target our action plans and signicantly broaden scientic knowledge.
MORE THAN 200 RESEARCH PROJECTS SUPPORTED BY THE TOTAL FOUNDATION SINCE 1992
In 1992, Total created a corporate biodiversity foundation dedicated to protecting species and ecosystems. One of the model programs supported by the Foundation was the Census of Marine Life, a network of researchers from more than 80 countries involved in a ten-year (2000 to 2010) project to inventory marine life. The Foundation supports six of the 17 projects under this unique international program, including continental shelves, deepwater ecosystems, marine life in the Antarctic, the classication of species using bar codes, and the creation of a deepwater database. The results of this enormous undertaking will be presented in London in October 2010.
120,000
Giant deep-sea mussels, one of the species inventoried as part of the Census of Marine Life, a program supported by the Total Foundation.
tons per year of used engine oil given a second life as high-quality base oil, diesel fuel or asphalt and 45 direct jobs created in Gonfreville, France. Thanks to new licenses secured in 2009, the Osilub plant, which combines the skills and expertise of Total and Veolia, will be up and running in 2011.
TOTAL / 43
in line with the Basel Convention governing cross-border movements of hazardous waste; the creation in Gabon of a certied channel for collecting and treating used oil; and the pooling of best practices for the recovery of tank bottom sludge.
and the testing of a new ue gas scrubbing process at the Donges facility. Our third priority is heightened vigilance by operators, who are being asked to monitor specic indicators, follow tighter procedures and adopt best practices. To further our progress, our current focus is on responses to unusual weather patterns and accidental equipment failure.
DOING MORE TO PROTECT NEIGHBORING COMMUNITIES AND EMPLOYEES AGAINST VOLATILE ORGANIC COMPOUNDS (VOCS)
We are working on detecting VOC emissions and are gradually equipping our sites with tools such as infrared cameras. We are also stepping up and optimizing the use of vapor recovery systems during loading and ofoading. For example, this type of equipment was installed at the Carling petrochemical plant in 2009 to minimize benzene emissions during the loading of trains for the Gonfreville petrochemical complex.
Environment
TOTAL / 45
Q08
When it comes to local development, how can you leave your mark without encroaching on the role of government?
MICHEL POATI TCHICAYA
Local Development
Answer: Our actions to improve living conditions in our host countries are grounded rst and foremost in listening, dialogue, and understanding needs. Our aim is to involve local communities and competencies wherever possible. We work with all of our stakeholders to spur regional and local economies, create jobs and cultivate the talent available in the country. It is not our intention to supplant host governments. Our actions in the areas of education, public health and support for local businesses are conducted in line with a strategy developed in concert with the public authorities, to build on or cascade their own initiatives. In this way, we can effectively participate in the long-term development of host countries.
More than
11,000 3,609
students supported by Total in 2009. partnerships have been formed by Exploration & Production subsidiaries with NGOs, universities, associations, foundations, government agencies, and local and international institutions.
218
TOTAL / 47
Catalyzing development
Creating value for all of our stakeholders means making them partners in our growth, a strategy that dovetails our own interests and those of our host countries.
RESOLVING THE PARADOX OF PLENTY
The poorest three-fths of the global population live in countries with plentiful fossil fuel and mineral resources. Just ve of all oil and gas-rich countries fall into the top quartile of the United Nations Development Programs (UNDP) Human Development Index. Because nearly 75% of our production comes from non-OECD countries, this situation is especially compelling for us. We paid 7.9 billion in income and other taxes in these countries in 2009. But above and beyond that, we want to encourage, to the fullest extent that we can, the unlocking of oil and gas resources to spur economic development at national, regional and local level. That determination underpins our constantly strengthened involvement in the Extractive Industries Transparency Initiative (EITI), which we have supported since it was rst introduced in 2002 (see page 38).
UNDERSTANDING THE LOCAL ENVIRONMENT TO PINPOINT THE PRECISE IMPACT OF OUR OPERATIONS
The scale of our operations can raise high expectations and disrupt existing local balances, especially in economically disadvantaged regions. Identifying our potential impacts more precisely is a prerequisite to reduce and, where necessary, offset them. Compiling exhaustive records on lessons learned, as was done in 2009 for the Yemen LNG project, is an example of our determination to improve in this area. Thats also why we turn to independent outsiders. In Nigeria, for example, we are partners in a eld survey being conducted by a team of researchers in two separate regions since 2008. One is the Ogba/Egbema/Ndoni Local Government Area (ONELGA), where our onshore activities are located and where we are in direct contact with neighbors. The other is Eastern Obolo, where no oil companies operate, but where we have deployed sustainable development programs through the local Eastern Obolo Community Development Foundation (EOCDF), created with the NGO Pro-Natura International in 2002. The survey aims to do more than just assess local community aid projects and compare living standards. It emphasizes interpersonal relations, as reected by the social climate in communities, civic involvement, and a willingness to work together to reach common goals. It highlights the value of a participatory process such as the one in Eastern Obolo and the importance of acting on a regional scale.
Local Development
TOTAL / 49
years. Support for contractors and a commitment to helping them move into sustainable business niches, such as maintenance, have pushed the level of local content in the subsidiarys projects to 50% in the last ve years, in increasingly varied areas.
Local Development
In 2009, a cross-business working group was set up to combine TDRs expertise with other in-house resources to make our initiatives even more effective and learn lessons from various recent pilot programs in Africa, Belgium and Italy, based on in-depth identication of local expectations.
educational systems, through partnerships between French and foreign schools. Examples include IFP School and Bandung Technical Institute (BTI) in Indonesia and ParisTech, a network of leading French engineering schools and research institutes, and Tongji University in China. In addition, Total supports Institut Suprieur de Technologie dAfrique Centrale (ISTAC), created with Institut Catholique dArts et Mtiers (ICAM) engineering school, based in France. With campuses in Cameroon and Congo, ISTAC trains senior technicians and engineers. Also in Congo, our local subsidiary is involved in creating challenging advanced placement classes for high school students in Pointe-Noire, facilitating their access to higher education. We are now focusing on short technical training programs that lead directly to skilled jobs, including with our partners and contractors.
TOTAL / 51
Q09
Joint Special Representative of the African Union and the United Nations for Darfur (Sudan), former Under-Secretary-General, Special Adviser to the Secretary-General on Myanmar
Myanmar
Answer: We will not abandon our commitment to the people living near our facilities in Myanmar and will remain in the country for as long as we can freely apply our own business principles in our operations. We act responsibly in Myanmar, upholding strict international standards such as the Universal Declaration of Human Rights and demonstrating our socioeconomic commitment, which makes a tangible difference to the lives of people there. We transparently report on what we do. Our presence in the country does not mean we endorse the regime, with which we maintain critical dialogue. Leveraging our inuence where we can helps to create conditions that may enable the country to break out of the isolation imposed under a sanctions policy that has apparently reached a blind alley, and to move toward better governance. We believe that our withdrawal from the country would create further hardship for the people of Myanmar.
$2.65
million
2009 budget for our socioeconomic program in Myanmar; with our partners, we have spent more than $20 million on it since 1995.
95%
of the 900 employees of the subsidiary and its contractors are Myanmar nationals.
0.6%
Yadanas share of our total production.
TOTAL / 53
Yadana Project
Total operates the offshore Yadana gas field through our subsidiary Total E&P Myanmar (TEPM), with partners Unocal (a Chevron subsidiary), Thailands PTTEP and state-owned MOGE of Myanmar. The original memorandum of understanding for the project was signed in 1992 and the contract will expire in 2028. Over $1 billion was invested during the construction phase from 1995 to 1998. Production averaged 18 million cubic meters of gas per day in 2009, with Myanmar accounting for 0.6% of our total output. Around 15% of Yadanas gas is earmarked for domestic consumption in Myanmar. The remainder is exported to Thailand, where it is used to generate 20% of that countrys power.
Myanmar
In an effort to optimize the Yadana Suboo program introduced in 1997, Total works closely with specialists from Entrepreneurs du Monde, a French NGO focused on microfinance. Involved in crafting the lending policy and training local teams, its experts go out into the field three times a year to check that the program is operating smoothly. Currently, there are about 1,200 outstanding loans. The repayment rate exceeds 90%, and monthly interest rates were reduced in early 2010. For the most part, it is the poorest families that benefit, accounting for 67% of borrowers. Cemented by the creation of Village Banking Committees, the initiative recently added a savings program, which was trialed in four villages in 2009.
THAILAND
Most of the 410-kilometer Yadana gas export pipeline lies offshore, with 63 kilometers onshore in southern Myanmar. Nearly 50,000 people of diverse ethnic origins and religions live in this rural region. We can fully exercise our commitment to human rights in the pipeline area, where we also have a socioeconomic program covering 25 villages.
Pipeline area
5 km
MYANMAR
MYANMAR
Villages covered by the program Gas pipeline Roads
Yadana
TOTAL / 55
emergency medical response system. Efforts focus on prevention and maternal and child health in particular. Along with a revamped micronance program, initiatives to improve residents incomes include teaching them more efcient farming and livestock production methods, having veterinarians monitor herds and, in 2009, opening a second, cooperatively managed Village Agriculture Input Store.
Ten new basic infrastructure projects were completed in 2009, including bridges, schools, clinics and drinking water supply systems, bringing their total number to more than 200 since 1995. Now, whenever possible and when security conditions allow, development projects are managed by communities and implemented by local businesses.
Myanmar
TOTAL WORKS WITH THE U.N. TO EDUCATE PUBLIC OFFICIALS ABOUT GOOD GOVERNANCE
We want to help Myanmar government ofcials who may ultimately rise to high-level positions move closer to international standards. In late 2009, three years after an initial course, 30 participants from 11 ministries learned about human rights, humanitarian, refugee, maritime and environmental law, the United Nations system and multilateral relations at a seminar jointly organized by the United Nations Institute for Training and Research (UNITAR) and the Myanmar Ministry of Foreign Affairs, with TEPMs nancial support. Total sees this as another way we can help the United Nations open up the country and bring it back into the international community.
More than
100,000
cataract surgeries have been performed nationwide since 2001, under the blindness prevention program deployed by the NGO Helen Keller International, which receives $250,000 in donations from the Yadana partners annually.
Following Cyclone Nargis in 2008, TEPM contributed to the relief effort in many ways, including a $2-million donation to the Red Cross and Red Crescent. Our teams continue to closely monitor revitalization efforts in the affected areas.
TOTAL / 57
Q10
Given the absence of government regulations to enforce cumulative limits to protect the air, land and water, how will Total ensure that their oil sands projects do not contribute to adverse cumulative environmental effects?
MARLO RAYNOLDS
Executive Director of the Pembina Institute, a Canadian ENGO that promotes sustainable energy solutions through innovative research, education, consulting and advocacy
Oil Sands
Answer: Oil sands development requires special precautions and a range of environmentally efcient technologies. Our operations will not begin until 2017. That gives us time to incorporate innovative, economically achievable solutions to mitigate the cumulative environmental effects, in a manner that will be transparent for our stakeholders. We have for a number of years been exploring various avenues of improvement. These include reducing water withdrawals by optimizing recycling, scaling back the physical footprint and size of tailings ponds, enhancing the energy efciency of all processes to curb carbon emissions, and accelerating reclamation by taking into account the characteristics of Canadas boreal forest.
170 5%
billion
barrels of proved reserves, putting Canada in second place after Saudi Arabia, and equivalent to ve years of global production.
250,000 CAD4
million
barrels per day (Totals share): estimated production level of Totals oil sands assets by 2020.
share of Canadas overall greenhouse gas emissions that are linked to current oil sands production.
TOTAL / 59
POOLING OUR RESEARCH EFFORTS TO ACCELERATE THE USE OF CARBON CAPTURE AND STORAGE
TEPCA takes an active part in the work of the Integrated CO2 Network (ICO2N), whose main objective is to frame policy, provide analysis, and prepare integrated CCS solutions for Alberta. TEPCA is also part of the Alberta Saline Aquifer Project (ASAP), the Wabamun Area CO2 Sequestration Project (WASP) and, since early 2010, the Heartland Area Redwater Project (HARP) Phase 2. TEPCA aims to complement the lessons drawn from our Lacq pilot in France.
Oil Sands
MINING
Mining shovels dig into sand and load it into huge trucks. Trucks take oil sands to crushers, where it is prepared for extraction.
Bitumen is extracted from the oil sands slurry during hydrotransport and in the separation vessels.
Hot water is added to the oil sands and then fed via hydrotransport to the extraction plant.
The tailings are pumped to the settling basin, where the water is recycled.
Heated oil and water are pumped to the surface. Steam chamber Steam injection
Oil
Extraction techniques: mining and in situ Two types of recovery methods are used in the oil sands. Deposits close to the surface are mined, while resources more than 80 meters below the surface require in-place, or in situ, recovery. In mining, shovels excavate the oil sand and load it into huge trucks. The mined ore passes through crushers, where it is prepared for extraction. Hot water is added to create an oil sand slurry. This is fed via pipeline to the extraction plant, where bitumen is extracted in separation vessels. Separating bitumen from sand and water results in tailings, which are pumped to ponds, where water is recovered and recycled.
In situ recovery works by injecting energy into the reservoir to uidize and produce the bitumen. Two main techniques are currently used. One is Cyclic Steam Stimulation (CCS), which alternates between injecting steam into a well and, after letting the heat soak in, pumping out the bitumen through the same vertical well, in cycles of several weeks. The other is Steam Assisted Gravity Drainage (SAGD), a process that continuously injects steam through an upper horizontal well, then pumps the bitumen out through a second horizontal well about ve meters lower than the rst. The option chosen depends essentially on the reservoirs properties.
TOTAL / 61
Our objective is to develop the Joslyn North Mine as one of the most environmentally responsible projects in the Athabasca.
Bitumen and extra-heavy crude oil: a resource needed to meet rising demand
Bitumen and extra-heavy oils global resources are estimated at 600 billion recoverable barrels and located mainly in North and South America. With nearly 170 billion barrels of proved reserves, Canadas oil sands make up a signicant share of the total. By 2025, the aggregate output drawn from Canadian oil sands could reach 3 million to 3.5 million barrels per day.
530
square kilometers: as of today, the surface covered by oil sands mining development in the Athabasca region. The potential of the development considered is 4,800 square kilometers in total, representing 0.1% of Canadas boreal forest.
Oil Sands
we learn from SRM + will help us continue supporting local communities even more effectively.
A question for
JIM BOUCHER Chief of the Fort McKay First Nation How can we ensure that oil sands development delivers lasting benets for First Nations peoples? First Nations peoples have been occupying their lands, or traditional territories, for tens of thousands of years. They are people of the land, stewarding the resources which they have depended upon for their survival in harmony with the seasons. Over a short period of time, the last 40 years, the landscape has changed in the Athabasca Oil Sands area. This area overlaps with the traditional lands of Fort McKay, placing the Community in the center of oil sands activity. The area, once dominated by boreal forest, muskeg, wildlife and berries, is now also home to expansive oil sands mines and SAGD developments, tailings ponds and accompanying infrastructure. Community members continue to hunt, trap, sh and collect berries and medicinal plants but are doing so in an environment threatened by impacts from industrial activity. It is the goal of Fort McKay leadership to ensure that the impacts posed by oil sands development does not outweigh the benets of being neighbors to big industry. In Fort McKay we take our relationship with industry very seriously. A good, solid relationship based on trust and shared goals allows
both the Community and Industry to live side by side to work together to minimize the impacts to the environment while maximizing the benets of developing the oil sands in a responsible manner. We expect our neighbors to be transparent in their dealings with us, to provide us with timely information about their activities to enable us to respond, to involve us at their early planning stages through to monitoring and eventual reclamation and closure. To embrace our traditional environmental knowledge as well as our entrepreneurship and business aptitude. To ensure lasting benets, industry must invest in the communities in which they reside. To invest means that there is an honest commitment to develop the resource responsibly, make use of local labor pools, build capacity to be meaningfully engaged, joint venture where opportunities exist, have a presence in the community and build long-lasting relationships with the community at every level.
TOTAL / 63
Environment
Flaring reduction in Exploration & Production: in 2014
Safety
Total recordable injury rate
50%
from 2005
25%
< 30 ppm
Energy efciency
Human resources
Non-French executives
25%
Recruitment
in 2010
a year between 2007 and 2012 in Exploration & Production and Petrochemicals and +1% a year in Rening Reduction in sulfur dioxide emissions by reneries
+2% 20%
Certication
8,000 12%
of environmentally sensitive sites, as dened in the Reporting Scope and Method section, certied ISO 14001 in 2012
100%
Total has been included in the DJSI World Index since 2004 and the DJSI Europe Index since 2005. These indexes are based on the cooperation of Swiss asset manager SAM. Total was the 2009/2010 DJSI Oil & Gas supersector leader.
Total has been included in French rating agency Vigeos ASPI Index since 2004.
Total has been a constituent company to the FTSE4Good Index Series since 2001. The index is calculated by the global index provider, FTSE Group.
Total was included in the Carbon Disclosure Leadership Index in 2006, 2007 and 2009.
TOTAL / 65
Social reporting is based on two resources the Global Workforce Analysis and the Worldwide Human Resources Survey (WHRS). The Global Workforce Analysis is conducted twice a year, on June 30 and December 31, in all fully consolidated companies owned 50% or more and included in the Registration Document. The survey covers worldwide workforces, hiring under permanent and xed-term contracts, nationality, and employee hires and departures, to produce a breakdown of the workforce by gender, category (managers and non-managers), age and nationality. The Worldwide Human Resources Survey (WHRS) is an annual survey that comprises 91 indicators in addition to those used in the Global Workforce Analysis. The indicators are selected in cooperation with the businesses and cover major components of our human resources policy, such as mobility, career management, training, employee dialogue, Code of Conduct application, health, compensation, retirement benets and insurance. The survey covers a representative sample of 92 consolidated companies with 68,943 employees. The statistics in this report are taken from the most recent survey, conducted in December 2009 and January 2010. A total of 92 companies accounting for 72% of the consolidated workforce and operating in 39 countries responded. Both surveys are conducted using the Enablon application, introduced at end-2003, and undergo similar internal control and validation processes. Consolidation method Environmental, industrial safety and social data are fully consolidated in these scopes. Changes in scope Changes in scope are taken into account on the date they take effect. However, because environmental parameters are expressed in absolute values, all historical parameters are restated as of the year an asset is divested or acquired. Where relevant, data from previous years is recalculated in line with the new scope of consolidation, to facilitate like-for-like comparisons.
SCOPE
In 2009, environmental reporting covered all Total-operated Upstream, Downstream and Chemicals sites at December 31, 2009. The 2009 reporting questionnaire was completed by 906 production sites, or 99% of the total. The data published in this report cover greenhouse gases, chronic and accidental emissions and discharges to the air and water, the amount of freshwater withdrawn from and discharged into the natural environment, waste and certain data related to energy and site management systems. The ISO 14001 certication target given in this report covers environmentally sensitive sites that account for 90% of the main indicators for each business, including air emissions and freshwater withdrawals. Safety reporting covers all Total employees, as well as employees of contractors with a specic volume of work at Group-operated sites or under contract to Total. Each site submits its reporting to the relevant business unit. The data are then consolidated at the business level and, every month, at the corporate level. In 2009, the Group safety reporting scope covered 454,671,000 hours worked, equivalent to around 267,500 people.
PRINCIPLES
Indicator selection and relevance The data published in this report are intended to inform stakeholders about Totals corporate social responsibility performance for the year in question. The indicators consist of corporate performance indicators tracked by the Corporate Affairs Department and the principal indicators in the International Petroleum Industry Environmental Conservation Associations (IPIECA) Oil and Gas Industry Guidance on Voluntary Sustainability Reporting. The indicators have been selected to track: Totals commitments and policies (safety management systems, environmental management systems, etc.). Performance relative to Totals principal challenges and impacts. The effects of Totals social policies. Legislative and regulatory obligations, such as those stipulated in Frances New Business Regulations (NRE) Act. Terminology used in social reporting Management staff refers to any employee whose job level is the equivalent of 300 or more Hay points. Managed scope: All subsidiaries in which one or more Group companies own a stake of 50% or more, or 512 companies in 133 countries. Consolidated scope: All subsidiaries fully consolidated as in the Registration Document, or 340 companies and 96,387 employees. Methods The methods may be adjusted to reect the diversity of Totals activities, recent consolidation of subsidiaries, lack of standardized international regulations or denitions, practical procedures for collecting data, or changes in methods.
Continuous improvement of processes Marketing and Specialties, which make only a minor contribution to certain indicators, have nonetheless introduced a gradual process of consolidating Group indicators. An update of their actual contribution is underway. There have been no signicant changes to the denitions of environmental and social performance indicators. Consolidation and internal controls Environmental, social and industrial safety data are consolidated and checked by each business unit and business and then at corporate level. Data pertaining to certain specic indicators are calculated directly by the businesses. These processes are regularly audited internally. External opinion For the fth year in a row, Total elected to have its main environmental and social performance indicators audited. These indicators are identied by the symbol in the 2009 Environment and Society Report table of indicators. External audits are performed at the Group and business level, as well as in a sample of business units in and outside France, selected each year in line with their relative contribution to the Group totals, previous years results and a risk analysis. The auditors independence is dened by legislation and the French Rules of Professional Conduct for Statutory Auditors.
Aggregate percentage of units covered by external audits of environmental and social indicators ENVIRONMENTAL INDICATORS
Greenhouse gas emissions Percentage of units covered NOx emissions SO2 emissions Total hazardous waste treated offsite Freshwater withdrawals excluding once-through cooling water
SOCIAL INDICATORS
Workforce Number of training days Number of sick days
TOTAL / 67
Assurance report
on certain environmental and social performance indicators
At Totals request, we have performed a review that allowed us to provide a moderate level of assurance on all meaningful aspects of certain environmental and social performance data selected by Total (the data(1)) for 2009, identied in this report by the symbol . The data were prepared in accordance with:
The Corporate Environmental Performance Reporting Guideline and the Corporate Greenhouse Gas Emissions Reporting Guideline. The procedures used to conduct the Worldwide Human Resources Survey and the twice-yearly Global Workforce Analysis. Hereinafter the Reference Procedures. Two Corporate Affairs departments were responsible for preparing the performance data and establishing the respective Reference Procedures: the Sustainable Development and Environment Department for environmental performance and the Corporate Human Resources Department for social performance. The Reference Procedures can be consulted at Totals headquarters and are described in part on pages 66 and 67. It is our responsibility to express an opinion of this data, based on our review, which was conducted in line with the professional standards applicable in France and the International Standard on Assurance Engagement (ISAE 3000), published in December 2003. Our independence is dened by French legislation and regulations and the French Rules of Professional Conduct for Statutory Auditors. Our opinion concerns the relevant data only, not the complete Environment and Society Report.
subsidiaries(2) for the environmental indicators and nine sites and subsidiaries(3) for the social data, in line with their activity, their contribution to the consolidated data for the Group, their location and the ndings of our previous reviews. For these sites and units, we veried understanding and application of the Reference Procedures and, on a test basis, veried the calculations and reconciled data with the supporting documentation. Our review covered 17 to 33% of the consolidated environmental data for Total and 10% of the consolidated workforce for social data.
OPINION
On the basis of our review, nothing has come to our attention that causes us to believe that the reviewed indicators have not, in all material respects, been prepared in accordance with the Reference Procedures.
Statutory Auditors
Philippe Arnaud Partner Manager of the Environment & Sustainable Development Department
Eric Duvaud Partner Manager of the Environment & Sustainable Development Department
(1) Environmental performance indicators: greenhouse gas emissions (CO2, N2O, CH4, HFC, PFC, SF6 ), SO2, NOx, hazardous waste production treated offsite, freshwater withdrawals excluding once-through cooling water. Social performance indicators: workforce (by age, manager/non-manager, gender), hires, departures and balance, French and non-French managers, number of training days, guaranteed minimum wage, regular medical checkups, number of sick days, employee representatives, annual performance review for managers and non-managers. (2) Exploration & Production: subsidiaries Total E&P Nigeria, Total E&P UK and Total E&P ABK in Abu Dhabi; Gas & Power: CDFE Montoir site in France; Rening: Total Rafnerie Mitteldeutschland GmbH in Germany and the Donges and Flandres reneries in France; Marketing Europe: the Preston bitumen plant in the United Kingdom; Specialty Chemicals in Northern, Central and Western Europe, C.I.S., and Central and Latin America: Nowy Dwor Mazowiecki lubricants plant in Poland; Chemicals: the Total Petrochemicals sites in Carling, France, Hutchinsons Zywiec I site in Poland and Atotechs Feucht site in Germany. (3) Exploration & Production: subsidiaries Total E&P Nigeria and Total E&P UK; Gas & Power: Total Gas & Power Ltd in the United Kingdom; Rening: Total Rafnerie Mitteldeutschland GmbH in Germany; Marketing Africa-Middle East: Total Nigeria; Marketing Europe: Total UK Ltd; Chemicals: Hutchinson Poland, Atotech Deutschland GmbH in Germany, and Bostik S.A. in France.
TOTAL / 69
Economic
Unit
2007
158,752 23,956 12,231 12,203 5.37 2.07 27 24 31 17,686 11,722 1,556
2008
179,976 28,114 13,961 13,920 6.20 2.28 23 26 32 18,669 13,640 2,585
2009
131,327 14,154 7,607 7,784 3.48 2.28 27 13 16 12,360 13,349 3,081
Sales Adjusted operating income from business segments(1) Adjusted net operating income from business segments(1) Adjusted net income (Group share)(1) Adjusted fully-diluted earnings per share(1) (2) Dividend per share(3) Net debt-to-equity (at December 31) Return on Average Capital Employed (ROACE)(4) Return on equity Cash ow from operating activities Capital expenditure Divestitures at selling price
M M M M % % % M M M
(1) Net income using replacement cost, adjusted for special items and excluding Totals share of amortization of intangibles related to the Sano-Aventis merger and, from 2009, selected items related to Sano-Aventis. (2) Based on the average weighted diluted shares outstanding during the year. (3) Subject to approval at the Annual Shareholders Meeting on May 21, 2010. (4) Calculated based on adjusted net operating income and average capital employed, using replacement cost.
Environment
Unit
2007
803 95 235 37 92 106
2008
910 97 252 41 98 113
2009
916 99 286 61 110 115 89
Operated sites Sites that responded to the environmental reporting questionnaire ISO 14001-certied sites of which: Upstream Downstream Chemicals ISO 14001-certied environmentally sensitive sites
number % number
Six greenhouse gases of which: Upstream Downstream Chemicals Primary energy consumption of which: Upstream Downstream Chemicals Flaring and venting
MTCDE/year
MGJ/year
metric ktoe/year
Audited indicators that obtained a moderate level of assurance from Ernst & Young and KPMG.
Unit
2007
148.4 65.1 80.3 3.0 90.4 58.6 23.6 8.2 139.6 97.1 15.2 17.2 10.1
2008
136.2 53.7 79.6 2.9 91.7 62.8 21.7 7.2 131.2 91.3 15.2 15.4 9.3
2009
129.8 60.4 67.1 2.3 92.0 64.3 21.8 5.9 134.7 99.3 14.6 12.9 7.9
SO2 emissions of which: Upstream Downstream Chemicals NOx emissions of which: Upstream Downstream Chemicals Non-methane VOC emissions of which: Upstream Rening Marketing Chemicals
metric ktons/year
metric ktons/year
metric ktons/year
Freshwater withdrawal (excluding once-through cooling water) Discharges (excluding once-through cooling water) Hydrocarbon discharges in efuent of which: Downstream and Chemicals Upstream Exploration & Production Suspended solids discharges Chemical oxygen demand (COD)
Mcu. m/year Mcu. m/year metric tons/year metric tons/year metric tons/year ppm metric tons/year metric tons/year
Hazardous waste production (treated offsite) of which: Hazardous waste from routine operations of which: Upstream Downstream Chemicals of which: Special waste
metric ktons/year
Audited indicators that obtained a moderate level of assurance from Ernst & Young and KPMG.
TOTAL / 71
Social
Unit
2007
2008
2009
WORKFORCE Consolidated scope Workforce by region France Europe excluding France Africa North America South America Asia Other(1) Total(2) Workforce by manager/non-manager Managers of which senior executives Non-managers
number
37,101 27,495 8,237 7,379 6,574 8,733 1,440 96,959 25,397 320 71,562 96,959 7 13 15 14 14 13 13 9 2 0
36,407 26,299 8,648 6,845 6,923 9,795 1,470 96,387 26,149 308 70,238 96,387 7 12 15 15 14 13 13 9 2 0
Total(2)
Workforce by age bracket(3) Under 25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 and over EMPLOYMENT Consolidated scope Permanent hires by region France Europe excluding France Africa North America South America Asia Other(1)
% %
17 24 10 12 21 14 2
18 22 9 10 22 15 4
14 29 10 8 19 17 3
(1) Other: Middle East, French overseas departments and territories, Pacic. (2) Paints business divested in February 2003. (3) Data for ve-year periods from 2004 and ten-year periods in 2002 and 2003. Audited indicators that obtained a moderate level of assurance from Ernst & Young and KPMG.
Unit
2007
2008
2009
DIVERSITY Consolidated scope Percentage women in workforce Percentage women in total workforce Percentage women managers Percentage women senior executives Percentage women in permanent hires Percentage women in permanent manager hires Percentage non-French nationals in workforce Percentage total workforce Percentage managers Percentage non-French nationals in hires Percentage permanent hires Percentage permanent contract manager hires Nationalities represented at Total HEALTH Worldwide Human Resources Survey scope Percentage Group companies that offer employees regular medical checkups % WORKING HOURS Worldwide Human Resources Survey scope Percentage employees who can opt to work part time BENEFITS Worldwide Human Resources Survey scope Percentage employees with death benets > 200% of gross salary EMPLOYEE DIALOGUE Worldwide Human Resources Survey scope Percentage companies with employee representation Percentage employees covered by a collective bargaining agreement Collective bargaining agreements CAREER MANAGEMENT Worldwide Human Resources Survey scope Percentage Group companies with an annual performance review system For managers For non-managers Total Average length of time in a position Less than 3 years 3 to 5 years 6 to 8 years More than 8 years Average
Audited indicators that obtained a moderate level of assurance from Ernst & Young and KPMG.
29 21 8.6 31 25
%
29 22 10.6 31 29 62 58 82 69 133
30 22 12 32 26 63 58 85 69 132
62 57
%
83 72
number
133
98
98
98
83
82
81
74
77
80
% % number
86 75 164
87 74 166
87 74 178
41 21 15 23 4 years
TOTAL / 73
Safety
Unit
2007
2.4 0.8 1.8 2.58 4.17 4.2 2.4 2.7 3.2 7.7 15 0.034
2008
2.1 0.6 2.1 2.5 3.6 3.6 2.2 2.1 2.9 6.5 8 0.018
2009
1.9 0.6 1.00 2.4 3.1 3.1 1.9 1.8 2.9 5 21 0.046
Lost time injury rate (Total + contractor employees) LTIR of which: Exploration & Production Gas & Power Rening & Marketing Chemicals Total recordable injury rate (Total + contractor employees) TRIR of which: Exploration & Production Gas & Power Rening & Marketing Chemicals Fatalities Fatalities per million hours worked (Total + contractor employees)
number
number
number number
Community
Unit
2007
124.5 79.5 2,759 N/A N/A
2008
151 87.5 2,619 17 N/A
2009
210 91.15 2,234 19.4 12.5
Community development spending Community development spending in non-OECD countries Number of initiatives Total Foundation + corporate philanthropy spending French Community Development Fund for Youth
M % number M M
IPIECA index
In preparing our Environment and Society Report, we refer primarily to the International Petroleum Industry Environmental Conservation Association (IPIECA)/American Petroleum Institute (API) guidance, which is specic to the oil industry. To see a comparison with the Global Reporting Initiative (GRI), go to www.total.com.
Economic
Governments ECO1 ECOA1 Shareholders ECO2 Employees ECOA2 Suppliers & Contractors ECO3 Lenders & Holders of Debt Securities ECOA3 Tax Expenses Transparency of Payments Dividends Paid Plus Share Repurchases Payroll and Benets Capital Expenditures Interest Paid
Go to Q08 Q06, Q08 Introduction + Indicators Introduction + Indicators Introduction Registration Document
Environmental
Spills and Discharges ENV1 ENV2 ENVA1 ENVA2 ENVA3 ENVA4 ENVA5 ENV3 ENV4 ENVA6 ENV5 ENVA7 ENVA8 ENV6 ENVA9 Hydrocarbon Spills to the Environment Controlled Discharges to Water Other Spills and Accidental Releases Other Efuent Discharges Hazardous Waste Non-Hazardous Waste Recycled, Reused or Reclaimed Materials Greenhouse Gas Emissions Flared and Vented Gas Other Operational Air Emissions Energy Use Freshwater Use New and Renewable Energy Sources Environmental Management Systems Biodiversity Q07, Q10 + Indicators Q07 + Indicators Q07 + Indicators Indicators Q07 + Indicators Indicator not reported Indicator not reported Q02 + Indicators Q02 + Indicators Q07 + Indicators Q02 + Indicators Q07 + Indicators Indicator not reported Q07 + Indicators Q07
Emissions
Resource Use
Social
Human Rights Business Ethics SOC1 SOC2 SOC3 SOCA1 SOC4 SOCA2 SOC5 SOC6 SOCA3 SOC7 SOC8 SOCA4 SOCA5 SOCA6 SOCA7 SOC9 Human Rights Bribery and Corruption Political Contributions Political Lobbying and Advocacy Non-Discrimination and Equal Opportunity Employee Satisfaction Training and Development Non-Retaliation and Grievance System Local Employment Opportunities Labor Practices Community Relationships Social Investments External Capacity Building Indigenous Communities Resettlement and Land Right Security Q06, Q09 Q06 Web site Web site Q04 + Indicators Q04 + Indicators Web site Q06 Q08 Q06 Q08 Q08 + Indicators Q08 Q06, Q10 Web site Q06
Employment Practices
TOTAL / 75
TO LEARN MORE
www.total.com
http://foundation.total.com
You can learn more and the latest about each of our commitments and actions on our Web site. To let us know what you think and ask other questions, you can go to the Contact section of our Web site.
Created in 1992, the Total Foundation focuses on three core aspects of corporate philanthropy: community support and health, the environment and biodiversity, and culture and heritage. You can nd out about the Foundations projects, conducted in partnership with associations, institutions and NGOs, and about initiatives by Total employees on the Total Foundation Web site.
ILLUSTRATIONS: O. Charbonnel. PHOTO CREDITS: E. Caupeil/Myop S. Lavou/Myop M. Weiss M. Labelle L. Pascal T. Gonzales P. Livermore M. Roussel E. Follet C. Pirotte P. Boulen B. Blaise IPSOS Airstar M. Dufour U.N. Global Compact/Transparency International, 2009 L. Zylberman I. MacDonald (by courtesy of TAMU) Maersk P. Schaff O. Robinet (by courtesy of TIGF) G. Gauret Total All rights reserved. Total S.A. May 2010 EDITORIAL CONSULTANT: le bureau des mots DESIGN AND PRODUCTION:
Imprim vert
Printed on Oxygen Silk (also marketed as Satimat Green) satin-coated, chlorine-free, wood-free paper manufactured from 60% recycled bers and 40% FSC-approved virgin bers.
With EcoFolio, Total is encouraging paper recycling. Sort your trash, protect the environment. www.ecofolio.fr
We would like to sincerely thank the stakeholders who shared their questions and stories in this report. We would also like to thank everyone at Total who helped to prepare the report. We welcome your comments at total.com to continue this frank and open dialogue.
TOTAL S.A. Headquarters: 2 place Jean Millier, La Dfense 6 92400 Courbevoie, France Tel.: +33 (0)1 47 44 45 46 Share capital: 5,871,057,210 Registered in Nanterre: RCS 542 051 180 www.total.com