Voting decision on Total’s climate strategy

Annual Shareholders’ Meeting on 28th May 2021

Total SE

Some seventeen resolutions are to be submitted by the Board of Directors to the Shareholders’ Meeting this coming 28th May.

Among these resolutions, Total will seek approval from its shareholders on its objectives in the areas of sustainable development and the energy transition to carbon neutrality as well as on the climate targets it has set out to 2030. These are formally stipulated in resolution fourteen.

OFI Asset Management welcomes this decision and encourages the company to reiterate the exercise each year.

A vote will thus be held on the specific measures presented in this resolution, which OFI Asset Management has examined closely prior to taking its voting decision.

OFI Asset Management recognises the changes that the company has made in recent years in response to the climate emergency, the demands issued by investors including OFI Asset Management, and the legitimate expectations expressed by the population. The group is about to change its name to TotalEnergies SE and is certainly in a better position today than it was yesterday to embark upon its transition to a decarbonised energy model.

However, it is essential that the group step up its efforts and speed up its measures so that it can significantly reduce its scope 3 emissions in absolute terms between now and 2030. It will only be able to achieve this if it commits to reducing its fossil fuel production. OFI Asset Management is therefore particularly concerned to note that the group has revised its projections upwards for the gas sector and for the development of new oil and gas projects in ecologically sensitive areas such as East Africa and the Arctic region.

The group’s recent pledge to ensure its scope 3 emissions are lower in 2030 than in 2015 is a major step forward, but OFI Asset Management regrets the fact that it has not announced any specific quantified targets. It provides no precise details about its use of CO2 capture and storage technologies or about the resources it is allocating, thus putting its investments at further risk. OFI Asset Management encourages TOTAL SE to provide such details in its next climate report.

In keeping with its own climate commitments and for the reasons given above, OFI Asset Management shall vote against resolution fourteen.