6 - Integrating Climate into our Strategy “Our stakeholders understandably have higher expectations” It’s a must in the energy sector. The main priority is to reduce the use of coal, which generates more emissions that any other type of energy, and to switch to gas and renewables for power generation. A carbon price of USD 30 to USD 40 per ton would make this possible. Will the Paris climate agreement change Total’s strategy? The agreement confirms that we were right to make climate a cornerstone of our strategic vision. We have been taking strong measures since 2000 to reduce the impact of our activities. We were among the first in our industry to publish quantified improvement objectives. Since 2008, we have applied an internal carbon price to our projects and in 2011 began investing significantly in renewable energies. This strategic approach has taken shape gradually. And this year we’re taking a decisive step by creating a combined Strategy & Climate Division, because climate, a global concern, must be fully integrated into our overarching strategy. In the energy sector, the “COP21 effect” also means that businesses are becoming far more proactive. Here at Total, we have lobbied strongly for international initiatives, such as the Oil & Gas Climate Initiative, that will reshape our industry. Our stakeholders are voicing higher expectations, understandably so. We called for this climate agreement and have made commitments to support it. Now it’s time for us to step up and explain how our strategies tangibly reflect this engagement. Is this report a means for Total to respond to these expectations? Yes, and its appropriateness was discussed and approved by the Board of Directors. The report has three main goals. First, to share our ambition for Total in 2035: we have selected the International Energy Agency’s (IEA) 2°C scenario as a baseline. Second, to specify how this scenario impacts our decision-making process. Integrating the 2°C scenario recognizes that fossil fuels - especially oil - are mature, even, shrinking, markets. Being more selective in our investments is a key factor in sustainability that needs to be spelled out clearly. And third, this report is an opportunity to review the actions we have already implemented, the initiatives we are currently undertaking, the investments we are planning to secure for the future and the indicators we use to track our performance. What are Total’s objectives for 2035? Is climate change the company’s biggest challenge? Keeping the global temperature rise below 2°C is a challenge everyone must meet. The next 20 years will be decisive in building a low-carbon future that does not curb economic and social development. In 2040, the global population is projected to be 9 billion. That includes 2 billion people in Africa alone, where over 600 million people today do not have access to electricity. That figure worldwide is 1.2 billion. I believe our main responsibility is to help provide safe, affordable energy solutions to as many people as possible, while managing energy consumption and the related emissions. Doing this will entail improving energy efficiency across the board, optimizing the fossil fuel mix and accelerating the development of renewable energies. Our ambition is to position Total as a global leader in these three priority areas and drive progress. Our integrated business model, which spans producing, refining or processing and marketing oil and gas, will be one of our biggest advantages in achieving this goal. It enables us to take action across the entire energy value chain and keeps us in touch with our customers’ expectations. The challenge is not just to produce an energy mix that generates fewer emissions. We also have to continue reinventing our relationships with customers worldwide, by keeping pace with changes in energy use, adopting digital technology and supporting macro-trends such as urbanization.