26 - Integrating Climate into our Strategy A Resilient Portfolio The 2°C scenario highlights the fact that a part of the world’s fossil fuel resources cannot be developed. Total’s growth strategy takes this into account. In today’s challenging production environment, we are prioritizing our projects and focusing on moderately priced production and processing assets that meet the highest environmental and safety standards. On that basis, in 2015 we decided to reduce our exposure in Canada’s oil sands, which are particularly expensive to develop and operate. We also confirmed that we do not conduct oil exploration or production operations in the Arctic ice pack. In addition, to ensure the viability of our projects and our long-term strategy with regard to climate change issues, we apply an internal CO2 price of USD 30 to USD 40 per ton, depending on the oil price scenario or the actual price if it is higher in a given country, when evaluating our investments. This is consistent with our support for mechanisms to replace coal with gas in power generation and our investment in R&D on low-carbon technologies. Studies have shown that a long-term CO2 price of USD 40 per ton1 applied worldwide would have an impact of around 5% on Total’s discounted present value (upstream and downstream assets2). Our portfolio can therefore be considered resilient under such a scenario. 1 Effective from 2021, or the current price if higher in a given country. Sensitivity calculated for a crude oil price of USD 60 to USD 80 compared to a reference scenario that includes a CO2 price in regions already covered by carbon pricing mechanisms. 2