TotalEnergies: Playing a Key Role in Sustainable Procurement

One of the world’s largest energy suppliers, TotalEnergies is a major oil and gas company with operations spanning across the entire energy value chain — whether that be exploration, production, refining, marketing or renewable energies.

But enabling such operations across supply chains on a global scale means its procurement activities are complex and diverse, with a vast array of goods and services necessary to its function.

TotalEnergies works with more than 100,000 suppliers around the world, with a total spend of US$30bn in 2023. As part of its ongoing partnerships, the company ensures it plays a major role in encouraging its suppliers to improve their sustainability.

How important is sustainable procurement to TotalEnergies?

With a clear emphasis on supplier diversity and sustainability in its procurement practices, TotalEnergies engages with a diverse range of suppliers, including SMEs and businesses owned by minorities including women, people from ethnic minority backgrounds and armed forces veterans. This is also part of the company’s promotion of ESG — environmental, social, and governance — to limit negative impact or enhance positive impact.

To ensure TotalEnergies’ suppliers have a positive impact on the wider business and its stakeholders, 740 suppliers have been audited since 2016, including more than 230,000 workers. Of those, 171 have had corrective action plans implemented, which has improved the working conditions of 60,000 people.

TotalEnergies’ efforts in improving the quality of its suppliers — both for their benefit and that of the suppliers — revolve around five priorities:

• Priority 1: Training
  By the end of 2023, 61% of TotalEnergies’ buyers had been trained in sustainable procurement
• Priority 2: Raising awareness and mobilising suppliers
  This revolves around sustainable procurement through a platform, supplier days and dedicated training sessions
• Priority 3: Integration of sustainability requirements
  TotalEnergies ensures societal, environmental and climate criteria are taken into account during tender evaluation
• Priority 4: Evaluating suppliers
  With a target of assessing its 1,300 priority suppliers on all aspects of sustainable development by the end of 2025, TotalEnergies’ documentary and on-site audits assessed 37% of its priority suppliers in 2023
• Priority 5: Supporting continuous improvement
  This includes ensuring corrective measures securing workers’ rights — such as weekly leave, overtime pay and direct access to drinking water — are respected thanks to follow-up of audits.

These are outlined in the multinational energy and petroleum company’s Sustainability & Climate 2024 Progress Report.

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