Slide 1: Strategy, Sustainability & Climate
Strategy, Sustainability & Climate Building a multi-energy company toward sustainable and profitable growth March 24, 2022
Slide 2: Contents
04 | Principles of conduct for Russia-linked activities 25 | Transition Pathway Initiative 45 | Health & Safety: core values 05 | TotalEnergies’ exposure to Russia 26 | Advancing on our emission targets by 2030 46 | Enabling a just transition for our employees 27 | Scope 1+2: > - 40% in 2030 vs 2015
Slide 3: Facing the Ukraine – Russia war
vo TotalEnergies Facing the Ukraine — Russia
Slide 4: TotalEnergies condemns Russia's military aggression against Ukraine and supports sanctions
TotalEnergies condemns Russia's military aggression against Ukraine and support sanctions TotalEnergies acts responsibly, in accordance with its values Principles of conduct Key facts & actions Ensure strict compliance with current and future European sanctions, TotalEnergies does not operate any oi
Slide 5: TotalEnergies' exposure to Russia
Capital Employed as of 31/12/21 10% of Company Novatek (6.2 B$), Yamal LNG (4.3 B$), Arctic LNG-2 (2.5 B$) Upstream 2021 CFFO • interest in Novatek (independent company) 5% of Company (Novatek 400 M$, Yamal LNG 1.1 B$) • direct interest in Yamal LNG Upstream 2021 Adjusted NOI • direct interest in th
Slide 6: Strategy, Sustainability & Climate
Strategy, Sustainability & Climate Building a multi-energy company toward sustainable and profitable growth March 24, 2022
Slide 7: Presenters
Chairman and Chief Executive Officer President, Strategy & Sustainability President, OneTech, People & Social Engagement Panel March 2022 – Strategy, Sustainability & Climate | 7
Slide 8: Building a multi-energy company
Building = : is a multi-energy company
Slide 9: Building a multi-energy company
Building a multi-energy company March 2022 – Strategy, Sustainability & Climate | 9
Slide 10: Global trends underpinning evolution of energy markets
Acceleration of innovation to substitute oil use Oil demand plateau then decline from 2030+ with impact on long-term prices aiming at higher living standards LNG driving growth leading to despite energy efficiency gains Biofuels, biogas, hydrogen, e-fuels Imperative of for the planet Growing demand
Slide 11: Why investing in Power with historically lower returns than Oil & Gas?
Growing market Premium to early mover: right time to secure long-term positions (land, marine and grid interconnections), DNA of Oil & Gas business model Positive outlook on electricity prices (market complexity) Create value by capturing Managing commodities at the core of TotalEnergies business mo
Slide 12: TotalEnergies in 2050: a vision for a Net Zero company
New MtCO2e New 10 ~10 100% 100% 22% 25% 0 2050 NBS 10 MtCO2 19% -10 25% MtCO2e ~100 New 100 59% 50% 0 2050 CCS 50-100 MtCO2 CCU (e-fuels/e-gas) -100 25-50 MtCO2 0% 0% New * Hydro, solar, wind and nuclear (a) From operated facilities Building a multi-energy company ** Biofuels, biogas, hydrogen (b) F
Slide 13: Production growth driven by LNG
PJ/d PJ/d PJ/d Biogas, H2 Production growth 10 Domestic & pipe gas Biofuel driven by LNG and Electricity 5 Oil Renewables LNG to by 2030 Flexible generation 2019 2021 2025 2030 2019 2021 2025 2030 2019 2021 2025 2030 Building a multi-energy company March 2022 – Strategy, Sustainability & Climate | 1
Slide 14: Adapting our energy sales to demand
PJ/d PJ/d PJ/d Energy sales LNG Oil products Biogas, H2 15 over the decade Domestic & pipe gas Sales mix by 2030 10 Biofuel e-fuel LNG 5 Oil 2019 2021 2030 2019 2021 2030 2019 2021 2030 Building a multi-energy company 2021 data excluding Covid impact March 2022 – Strategy, Sustainability & Climate |
Slide 15: Oil: high-grading portfolio while adapting to demand
Mboe/d 2,5 2,0 -120 MtCO2 Scope 3 emissions 2021 vs 2019 : Refining +15% net CFFO --19% sales 1,5 1,0 Sales = Refining Production 0,5 Exploration capex : 500 M$ Venezuela heavy oil exit Refining 0,0 2019 2030 Building a multi-energy company * Excluding Covid impact March 2022 – Strategy, Sustainabil
Slide 16: Leveraging our unique integrated LNG position
Mt/y 40 Cameron, ECA, Nigeria Investing in low-cost Mozambique, Papua LNG, long-term competitive Yemen, other US options LNG projects 20 methane emissions by 2030 vs 2020 80% oil indexed New + 800 M$ CFFO for 10$/mmbtu 2015 2020 2021 2030 * Managed LNG portfolio Building a multi-energy company March
Slide 17: Growing value from integrated Renewables & Electricity
Company share, TWh 150 Gross renewable capacity in 2030 100 70% PPA/30% spot Renewables 50 Return on Equity generation Flexible 2015 2020 2021 2025 2030 Building a multi-energy company * Renewable projects including farm-down March 2022 – Strategy, Sustainability & Climate | 17
Slide 18: New molecules for energy transition
in 2021 in 2030 Ambition: in 2030 Priority to waste & residues Strong demand for bio-LNG/bio- CNG will drive higher value Kick-start clean hydrogen to cover ~300 kt/y SAF from 2024 Targeting of high value our refining demand (Normandy) circular polymers in 2030 2021: 2021: E-fuels valorizing green H
Slide 19: Capital investment strategy to build the multi-energy company
New greenfield and Exploration 25% 5% 20% Building a multi-energy company March 2022 – Strategy, Sustainability & Climate | 19
Slide 20: R&D at the forefront of the transformation
% 100% CCUS 90% 80% Batteries 70% 72% 60% 65% New energies 50% 40% 50% 43% Oil & Gas 30% 20% 10% 0% 2017 2018 2021 Guidance 2022 Building a multi-energy company March 2022 – Strategy, Sustainability & Climate | 20
Slide 21: Investment criteria for new hydrocarbon projects
Criteria 2021 approved oil & gas projects % vs. portfolio average $/boe 100 20 20,0 Profitability evaluated with: • Brent at 50 $/b and HH at 2.5 $/Mbtu • 40 $/t carbon price and 100 $30/t from 2030 • New assumption: 100 $22/t carbon price from 2023 New 10,0 Restricted to low-cost and low- emission
Slide 22: Transparency: taxonomy and resilience tests
Upstream and Downstream Other eligible activites 200 $30/tCO2 -9% NPV7 vs reference scenario @ 50$/b, 100 $30/tCO2 in 2030 IEA NZE 16.5% in 2020 9.2% in 2020 -17% NPV7 21% vs reference scenario @ 50$/b, 21% 100 $30/tCO2 in 2030 Impairment tests using price scenario converging toward NZE prices from
Slide 23: Integrating sustainability into our strategy, projects
Less emissions Care for People Shared prosperity the environment well-being w/ our stakeholders Building a multi-energy company March 2022 – Strategy, Sustainability & Climate | 23
Slide 24: Less emissions
TS TotalEnergies Less emissions
Slide 25: Transition Pathway Initiative
TPI is supported globally by 120 investors with more than 40 Tn$ combined asset under management and advice Reference for Climate Action 100+ benchmark Less emissions March 2022 – Strategy, Sustainability & Climate | 25
Slide 26: Advancing on our emission targets by 2030
2020* 2021* 2030 Mt CO2 41.5 37 Scope 1+2 emissions vs 2015 -9% -20% kt CH4 64 49 on operated Methane emissions New vs 2020 -23% activities Routine flaring Mm3/d 0.6 0.7 Scope 3 worldwide emissions Mt CO2 400 400 Mt CO2 320 285 for indirect Scope 3 worldwide Oil New vs 2015 -9% -19% New emissions1 M
Slide 27: Scope 1+2: > -40% in 2030 vs 2015
Objectives Mt CO2e New business vs 2015 46 (CCGT) TotalEnergies 40 < 40 vs. 2015 External references 25-30 IEA NZE scenario EU’s “Fit for 55” (1) Oil & Gas Third-party studies on GHG reduction commitments for 2050 NZE countries Carbone 4 Columbia University 0 2015 2025 2030 * Net of carbon sinks Les
Slide 28: Scope 1+2: mobilization on CO2 reduction using best available technologies
Levers New MtCO2e Reduce fuel gas consumption 46 All new projects Optimize power consumption New with closed flare RC: 450 M$ over 2018-25 power 40 strategy Reduce non-routine Deploy digital solutions (CCGT) flaring Emissions reduction 25-30 initiatives Oil (incl. CCS) & Gas Nature-based carbon sink
Slide 29: Aiming for zero methane emissions
kt CH4 120 Annual Monitoring Reducing 93 & Measuring leak detection & flaring & venting repair campaign New 64 2030 reduction targets in line with external references: 49 49 vs. 2020 New • EU gas markets framework -80% • IEA NZE scenario -75% vs. 2020 Highest level of reporting for operated and non
Slide 30: Net Scope 1+2: offsetting residual emissions with nature-based solutions
Our ambition Carbon credits to be used from 2030 Highest standards for certification (e.g., Verra VCS, CCB, Gold Standard…) Investing 100 M$/y in projects inclusive of local communities and preserving biodiversity Partnership with FRM Partnership with AgriProve > 5 MtCO2e/y sequestration capacity by
Slide 31: Taking care of non-operated emissions
New report Mt CO2e Mt CO2e 50 CCGT 52 49 40 Non-operated Operated sites sites 27 MtCO2e 2021 0 2015 2020 2021 Less emissions March 2022 – Strategy, Sustainability & Climate | 31
Slide 32: Transparency: tracking emissions across the globe
Europe* 220 22 20 7 Eurasia 79 Methane Scope 1+2 Scope 1+2 Scope 3 Americas operated operated equity 33 19 18 1 1 6 8 Methane Sc 1+2 Sc 1+2 Scope 3 operated operated equity Methane Sc 1+2 Sc 1+2 Scope 3 operated operated equity Africa 68 23 9 7 Methane Sc 1+2 Sc 1+2 Scope 3 operated operated equity
Slide 33: Accounting for Scope 3 emissions
2021 Production 2021 Midstream 2021 Sales Oil Refining Oil Products (1) 2.0 Mb/d (185 Mt CO2e) (145 Mt CO2e) 285 Mt CO2e Liquefaction Natural gas (2) LNG + BtB/BtC gas sales (45 Mt CO2e) 1.1 Mboe/d 3rd party long-term LNG Purchase (115 Mt CO2e) 115 Mt CO2e (40 Mt CO2e) 2021 data excluding Covid impa
Slide 34: Scope 3 Oil reduced by > 30% by 2030
New MtCO2e MtCO2e x3 Biofuel sales 410 400 New 400 x20 350 Electricity LNG > -30% Oil product sales sales sales 0 0 2015 2030 2015 2030 Less emissions * From energy products used by our customers (GHG Protocol Category 11) March 2022 – Strategy, Sustainability & Climate | 34
Slide 35: Just transition: supporting EU's NZE ambition
MtCO2e MtCO2e 256 250 250 154 0 0 2015 2030 2015 2030 From energy products used by our customers (GHG Protocol Category 11) Less emissions * EU27 + Norway + United Kingdom + Switzerland March 2022 – Strategy, Sustainability & Climate | 35
Slide 36: CCS: investing in CO2 storage services for our customers
Norway Netherlands UK Northern Lights (TotalEnergies 33%) Aramis (TotalEnergies 25%) NEP* (TotalEnergies 10%) CO2 storage (TotalEnergies 60%, operator) Phase 1 (FID 2020) Onshore and offshore infrastructure Up to 1.5 MtCO2/y by 2025 Aramis project for storage in the Endurance reservoir, a large-scal
Slide 37: Act on demand to decarbonize mobility
2021 2025 Mercedes Benz joined ACC by 2030 (~2.5 M EVs/y) E85 distribution leader in France Partnership with Daimler in Europe H2 Mobility, Hysetco by 2030 Production start-up at La Mède Less emissions March 2022 – Strategy, Sustainability & Climate | 37
Slide 38: Being a partner in our customers' carbon neutrality journey
Corporate PPAs already announced Corporate PPAs by 2025 Expanding Distributed Generation offer • Metals (steel and others) • Mobility OEMs • Cements • Construction No more fuel oil sold • Chemicals & Industrial Gases • Waste, Water pulp & Papers to power generation from 2025 • Food & Beverage • Mini
Slide 39: Advocacy aligned with our climate ambition
Aligning associations TotalEnergies recognizes the link established by science between human activities 1 Ensuring alignment and climate change. of professional associations with 2 TotalEnergies recognizes the Paris Agreement. our climate ambition 3 TotalEnergies supports the implementation of carbo
Slide 40: Care for the environment
—— TotalEnergies
Slide 41: Biodiversity: avoid, reduce, compensate
No oil or gas exploration or extraction in UNESCO’s world natural heritage sites Avoid Adverse impact No oil field operations in Arctic sea ice areas Biodiversity Action Plans for projects in areas of interest* (8 initiated in 2021) 25% net gain objective in population of species Net positive impact
Slide 42: Water stewardship
New Endorsing continuous improvement in six core areas of water stewardship practice: 1. Direct operations 4. Public policy 2. Supply chain & watershed management 5. Community engagement 3. Collective action 6. Transparency New (instead of < 15 mg/l) at our sites located in water stressed of continu
Slide 43: Circular economy
New Joined in 2022 the Platform for Accelerating the Circular Economy launched by the WEF and hosted by the WRI Founding Member New Supplies as feedstock in our facilities Sales Care for the environment March 2022 – Strategy, Sustainability & Climate | 43
Slide 44: People well-being
re TotalEnergies
Slide 45: Health & Safety: core values
per million man-hours 1,2 Zero Continuously 1,0 fatalities reducing the TRIR 0,8 0.73 0,6 Exxon, Chevron, Shell, BP Preventing Maintaining the occurrence and promoting 0,4 of major industrial the health of 2017 2018 2019 2020 2021 accidents our employees One fatality in 2021 People well-being March
Slide 46: Enabling a just transition for our employees
Regular pulse surveys Skills Youth campus comparison Support for managers: coaching, co-development Mapping of between competencies current and target positions Lunch & Learn Webinars on energy transition Systematic managerial communication Deployment of the required Up to 5 days training for all on
Slide 47: Promoting diversity and inclusion
Promoting 30% 40% of women of senior managers hiring and in management should be non-French integration committees and nationals by 2025 of people with among executives disabilities by 2025 In 2021, women represented In 2021, non-French nationals People with disabilities represented of senior execut
Slide 48: Embedding sustainability in our social policy
Implementation of annual check regarding gender pay equality in all countries and of corrective action Implementation of the global agreement with plan if necessary IndustriALL Global Union on the promotion of human rights at work, diversity, dialogue with employees and Worldwide due diligence to en
Slide 49: Respect of human rights
Our commitments Human Human Access to remedy rights rights in Our values in the security A grievance mechanism in each country workplace Our related Our internal Code of conduct salient activities An ethics officer for each country where we issues operate United Nations Guiding Principles on busines
Slide 50: Shared prosperity w/ our stakeholders
Slide 51: Creating shared value for all stakeholders
Creating Priority to local content in industrial Zero tolerance 360 Compliance Officers sustainable projects and operations against 80,000+ employees trained against Engagement plans with stakeholders for corruption by the end of 2021 value for local each E&P project corruption and 20 assessment mis
Slide 52: Sharing TotalEnergies' value creation
Net Investments Salaries ~30% and social charges ~20% | +3.4% vs 2020 9,2 employees countries 13,3 shareholders taxes paid ( capital) in non-OECD countries 15,9 suppliers individual 9,7 shareholders in 2 years Dividends and buybacks Taxes purchases ( capital) ~20% ~30% | +10 B$ vs 2020 Shared prospe
Slide 53: A committed Board serving our sustainable ambition
directors Lead Independent independent directors* Director women nationalities attendance rate at Board’s meetings executive session chaired by the Lead Independent Director The Board of Directors’ visit to the digital factory – 27/10/2021 Shared prosperity w/ our stakeholders * Excluding the direct
Slide 54: Sharing value with shareholders
Shared prosperity w/ our stakeholders March 2022 – Strategy, Sustainability & Climate | 54
Slide 55: Improving ESG performance through benchmarks
MSCI ESG Sustainalytics ISS ESG S&P Global CDP CDP Refinitiv rating ESG Risk rating Corporate rating ESG Climate Change Water AAA Negligible risk A+ 100 100 A A 90 AA 81 82 80 A- A- A- Medium risk 25 70 A A Medium risk 29 Average peers B- Prime B- 52 B- B- Utilities2 C+ High risk 33 Average peers D
Slide 56: Incentivizing management on ESG criteria
5%* 10%* 8%* 6%* 10%* 15%* 8%* 35%* 15%* 15%* 6%* 80%* 80%* 75%* 75%* 11%* 61%* 70%* 35%* Financial performance Profitable growth in Diversity New Individual performance Financial performance renewables and electricity in 2022 Safety Financial performance Scope 1+2 GHG reduction CSR performance Safe
Slide 57: AGM resolution
Today, March 24th May 25th Publication of the 2022 AGM: submitting Sustainability & Climate the 2022 Progress Report Progress Report to an advisory vote March 2022 – Strategy, Sustainability & Climate | 57
Slide 58: Compelling investment case
Low cost, low emission portfolio Increasing attractive and sustainable capturing upside from high energy prices return to shareholders Lowest cost producer - breakeven < 25 $/b Capital discipline: 13-16 B$/y over 2022-2025 #2 player in LNG – global LNG portfolio leveraged Increasing dividend by 5% f
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Slide 60: The Lake Albert project
Sustainable energy People Care for Shared prosperity and climate well-being the environment w/ our stakeholders Tilenga and Kingfisher oil Compliant with IFC Performance Reducing human pressure on Construction: 11,000 direct and resources: 230 kb/d Standards Murchison Falls Park through 47,000 indir
Slide 61: Climate reporting index
Indicators TotalEnergies In report Part Vision of a net-zero company in 2050 S&C report 1.1 Our climate ambition S&C report 1.1 to 1.6 2025 and 2030 emissions reduction targets: scope S&C report 1.2 & 2.3 1+2, scope 3, methane, carbon intensity How TotalEnergies is implementing its transformation S&
Slide 62: Disclaimer and definitions
The terms “TotalEnergies”, “TotalEnergies company” and “Company” in this document are used to designate TotalEnergies SE and These adjustment items include: consolidated entities directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer
Slide 63: For more information go to
Corporate Communications TotalEnergies SE 2, place Jean-Millier 92400 Courbevoie, France Tel.: +33 (0)1 47 44 45 46 Share capital: €6,524,409,507.50 Registered in Nanterre: RCS 542 051 180 For more information go to