Energy sobriety plan The offices of all main operating centers started to deploy an ambitious energy sobriety plan from October 2022. The preliminary results are very encouraging. These group and local initiatives are all pilot sites to help us in our learning curve to evaluate the measures having the greatest impact while maintaining comfort for the occupants and business operations. As an example, in France, the EcoWatt program was launched in 2022 to reduce the strain on the electricity network. The program alerts users to peaks in demand and recommends actions to reduce consumption and spread the load.
CARBON FOOTPRINT - SCOPE 3 INDIRECT EMISSIONS
Unlike manufacturing companies, Technip Energies, with some exceptions, does not operate nor own any production assets but provides design, technologies and management services for its clients. This unique company profile means that scope 1 and 2 emissions are relatively limited when compared to scope 3 emissions. However, the quantification of scope 3 emissions is a complex and technically challenging topic, especially for the greenhouse gas (“GHG”) emissions related to the projects developed for our clients. The dedicated Climate Change and Actions team, composed of professionals and engineers with confirmed knowledge of our value chain and project activities, developed quantification methodologies. These methodologies, which have been reviewed and validated by an external third party, allows us for the first time to publish our scope 3 upstream emissions and set the basis for future reduction targets and action plans.
Details on the methodology are provided in the Impact Book.
Approach to quantify scope 3 emissions Building on expertise and methodologies already deployed within other existing disciplines, including project management
and control, process and technology, engineering, procurement, transport, construction, digital, and HSE, the Climate Change and Actions team has been able to adapt, extend and combine similar processes to quantify GHG emissions accurately and efficiently. Using the large volume of information already collected in our databases for the needs of these activities, we can apply emissions factors to known quantities, to estimate the scope 3 indirect emissions of our activities and ensure its completeness. In this way, we use our engineering expertise to make the quantification, based on physical, quantified, actual and certified data developed and used by other disciplines. This approach guarantees a good level of accuracy of the calculated figures based on proven and reliable processes, and data sources tested internally and by our clients.
These methodologies are based on the Greenhouse Gas Protocol requirements while the ISO and EN standards have been used as guidance. An appropriate emission factors database has been developed based on available external databases, data from suppliers and in- house calculated emission factors. The methodologies involve over 30 processes, which are all documented, checked internally and reviewed by an external third-party. We can use these methodologies to estimate the carbon footprint of future projects during pre-investment stages from conceptual to FEED and EPC proposals. These approaches are sufficiently detailed that the parameters can be used at the design phase to lower a project’s overall carbon footprint, providing value for our clients and contributing to our sustainability offer.
Establishing robust methodologies to quantify and calculate scope 3 emissions has been a team effort, leveraging and combining the skills and expertise from across the operations and business lines. In 2023, we’ll be looking to apply this approach to manage other environmental factors. By accurately quantifying indirect emissions and environmental impacts, we can take effective and targeted measures to reduce them. In this way, Technip Energies is committed to reducing its overall environmental footprint and that of its clients.”
NATHALIE BALLAND-FERRERES Head of Climate Change and Actions
Scope 3 indirect emissions have been separated into two scopes: upstream (i.e. the project development phase) and downstream (i.e. the project operation phase). Figures for each scope 3 category are available in the Impact Book.
Scope 3 Upstream While scope 1 & 2, with the addition of business travel, employee commuting and other activities related to our own assets and people, represent Technip Energies’ carbon footprint as an engineering and services company, our scope 3 upstream represents Technip Energies’ carbon footprint as an EPC contractor. Indirect emissions, mainly from our procurement, transport and subcontracted construction activities amounted to 1.5 million tonnes of CO2 eq (“tCO2 eq”) in 2021 and 1.8 million tCO2 in 2022. The increase is explained by higher EPC activities in 2022 compared to the previous year. These emissions also include business travel, which declined drastically in 2020 and 2021 due to the COVID-19 pandemic; they increased in 2022 but remain below pre-pandemic levels. For the projects that are under development, the carbon footprint reported reflects the progress achieved during the year in the same way that annual revenue is reported in our financial results.
In line with the EcoWatt program, we have committed to implement a series of permanent measures to reduce the energy consumption of our Paris and Lyon sites. The minimum guaranteed temperature is set to 19°C, and we are reducing or improving the use of certain equipment and raising awareness of eco-actions. We have closed one of our buildings in Paris in December 2022, with the transfer of more than 650 people to our Origine headquarters, which benefits from geothermal and solar photovoltaic renewable power. The preliminary results show a decrease of 15% to 20% in electricity consumption in Paris in November and December 2022. More savings are expected from January 2023 after the move of all Paris-based employees to Origine.”
FRÉDÉRIQUE LE MOIGNE Vice-President Real Estate and Facilities
Scope 3 Downstream Quantification of indirect emissions from our clients’ plant operations will be reported in 2023.
EMISSIONS AVOIDED THANKS TO OUR SOLUTIONS
This measure captures the emission reductions of our clients that have been achieved through our projects. Because of the different nature and variety of the projects and solutions that Technip Energies provides, we have decided, for this year, to focus the reporting of avoided emissions on carbon capture projects only. Each of these projects are compared, as reference scenario or baseline, to the same project without the carbon capture unit. In the coming years, the types of emission reductions will be enlarged. We currently have three carbon capture projects in the EPC stage: the Qatargas NFE project in Qatar, the Hafslund Oslo Celsio project in Norway, and the ExxonMobil LaBarge Refinery Expansion project in Wyoming, US. We have calculated that these three projects have allowed clients to avoid 1.8 million tCO2 in 2021 (thanks to one project started) and 7.3 million tCO2 eq in 2022 (thanks to three on-going projects). By 2025, these savings are expected to reach 15 million tCO2 eq.
Climate & Environment
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Technip Energies awarded a large EPC contract by Hafslund Oslo Celsio for a world-first Carbon Capture and Storage (CCS) project at waste to energy plant in Norway
Technip Energies Sustainability Report 2022 . 3736 . ESG Roadmap and Performance
