How TotalEnergies is Making Procurement More Sustainable

TotalEnergies is a broad energy company that produces and markets energy on a global scale: oil and biofuels, natural gas and green gases, renewables and electricity.

It works with over 100,000 suppliers of goods and services across the world, with a total spend of around US$30bn in 2023.

The company plays a major role in encouraging its suppliers to improve their sustainability.

Since 2016, TotalEnergies has carried out 740 supplier audits to assess their work.

How TotalEnergies is making sustainable suppliers a priority

The organisation has outlined a number of priorities focused on making its suppliers more sustainable.

Priority 1: Training its buyers

By the end of 2023, 61% of TotalEnergies’ buyers had been trained in sustainable procurement.

Additional awareness-raising actions are regularly carried out through thematic webinars.

Priority 2: Raising awareness and mobilising suppliers

The company regularly raises awareness among its suppliers regarding sustainable development.

It engages its main suppliers through a platform, through supplier days such as those organised in March 2023 in China and in July in Nigeria and also through dedicated training sessions, such as the one organised in May 2023 in Vietnam.

Priority 3: Integration of sustainability requirements into the purchasing process

Based on its fundamental principles, updated in 2022 to address climate and sustainability matters and shared with its suppliers, the company ensures that societal, environmental and climate criteria are considered during tender evaluations.

Priority 4: Evaluating suppliers

The company has set a target of assessing its 1,300 priority suppliers on all aspects of sustainable development by the end of 2025. In 2023, 37% of priority suppliers were assessed through documentary and on-site audits.

Priority 5: Support for continuous improvement of suppliers

The follow-up of audits and the implementation of action plans have improved working conditions for over 60,000 workers.
In particular, corrective measures have ensured that workers’ rights to weekly leave, overtime pay and direct access to drinking water in the workplace are respected.

For example, after audits revealed that construction suppliers were not granting their employees a weekly day off, TotalEnergies teams worked with these suppliers to ensure that rest periods were respected.

Verification audits in 2023 demonstrated the success of this approach and rest time is now respected by these suppliers.

'More Energy, Less Emissions, More Value'

TotalEnergies is committed to finding innovative ways to help the sustainability of the planet. Working alongside SLB to develop innovative subsurface digital solutions, they contribute to more sustainable hydrocarbon production and the implementation of TotalEnergies’ “More energy, less emissions, more value” strategy.

The teams at TotalEnergies and SLB will jointly develop next-generation software available in the cloud.

These new digital tools will improve modelling of the subsurface to optimise production and make it more responsible.

They will also leverage the potential of the data collected, through AI, for the purposes of reducing existing fields’ carbon intensity and meeting new needs in geological carbon storage.

The new software will build on the earlier efforts of both partners with Intersect, a latest-generation reservoir simulator.

TotalEnergies’ teams are also supporting SLB by solarising its industrial sites worldwide, through agreements signed in Oman, the United Arab Emirates and Japan.

This allows TotalEnergies to support SLB’s energy transition with bespoke and competitive solutions that come with the guarantee of price visibility, while limiting its carbon footprint.

Namita Shah, President, OneTech at TotalEnergies, says: “We are delighted to develop our multi-energy partnerships with SLB through solarisation of SLB’s industrial sites and digital innovation that will allow us to develop cutting-edge next-generation software, digital applications and new algorithms applied to geoscience.

“Thanks to these innovative modelling technologies, we will better utilise the analyses of geological reservoirs and basins in the Oil & Gas sector to reduce emissions and we will progress in geological carbon storage.”

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