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30-34 Rue du Chemin Vert 75011 Paris +33 (0)1 85 56 97 00 www.carrenoir.com
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TECHNIPENERGIES TEC_20_13782_Earth_RVB JFB
Date : 06/02/2020
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In line with our ESG Roadmap, we are committed to strengthening our ESG accountability and report on progress. In addition to the results presented below, this chapter has been audited and is aligned with EU Taxonomy and international frameworks (TCFD, SASB, and GRI Standards). Investors and other stakeholders are looking beyond traditional metrics to consider profitability that is sustainable over the long term. Being able to demonstrate progress on ESG measures is an important differentiator and source of pride.
Definitions and Methodologies Our ESG Scorecard is both a framework and a commitment. It is the way we translate our ambitions into specific objectives and targets. Below, we describe the main terminologies used in the ESG Scorecard and how we calculate the respective targets.
SCOPE 1: TECHNIP ENERGIES’ DIRECT GHG EMISSIONS Direct GHG emissions occur from sources that are owned, or long-term rented, according to IFRS 16 regulation, by the company. Activity data and emissions include on-site stationary combustion of fossil fuel burning equipment (e.g. heating boilers) or process- based emissions (e.g. backup electricity generators). Also included, are refrigerants for heating, ventilation, and air conditioning purposes, and emissions from service vehicles for our own operations (owned and leased).
SCOPE 2: TECHNIP ENERGIES’ INDIRECT GHG EMISSIONS Scope 2 accounts for GHG emissions consumed by the company in its owned or long-term rented assets. It comprises emissions associated with the consumption of purchased or acquired electricity, heating and cooling. Activity data and emissions include the purchase of electrical power, heat and/or cooling from the utility local district network.
SCOPE 3: TECHNIP ENERGIES’ OTHER INDIRECT GHG EMISSIONS Scope 3 emissions are a consequence of the activities of the company but occur from sources not owned by the company. Some examples of scope 3 activities are extraction and production of purchased materials; transportation; and use of sold products and services. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions. Scope 3 emissions are divided into 15 different categories, such as purchased goods and services (category 1), the use of sold products (category 11, not reported this year), and the end-of-life treatment of sold products (category 12, not reported this year). Please see schema on page 86 - Overview of life cycle stages for typical onshore/offshore EPC
projects - which provides a clear split between scope 3 upstream and scope 3 downstream.
NET ZERO EMISSIONS The reporting company reaches a state of net zero emissions when (a) reducing its scope 1, 2 and 3 emissions to zero or to a residual level that is consistent with reaching net zero emissions at the global or sector level in eligible 1.5°C scenarios or sector pathways and; (b) neutralizing any residual emissions at the net zero target date and any GHG emissions released into the atmosphere thereafter.
TECHNIP ENERGIES’ AVOIDED GHG EMISSIONS Avoided GHG emissions are direct or indirect GHG emissions reductions or removals or sequestration that occur outside of Technip Energies services or project’s life cycle or value chain, but as a result of the use of that sold service or project. The point of view is that of the clients, comparing two situations: with the solutions sold by Technip Energies, and without the solutions sold by Technip Energies (corresponding to the reference scenario or baseline, e.g. without carbon capture units).
CARBON FOOTPRINT The total amount of greenhouse gases expressed in metric tonnes of CO2 equivalent listed in GHG Protocol for a defined perimeter.
R&D BUDGET ALLOCATION TO ENERGY TRANSITION Research and development R&D) budget allocated to our energy transition domains : Liquefied Natural Gas (LNG), sustainable chemistry, carbon-free energy solutions, and decarbonization from January 1 to December 31 of reporting year.
MAIN ENTITIES ISO 14001 CERTIFIED All main operating centers, above 50 permanent employees, as the Technip Energies organization, certified ISO 14001: Environmental Management System.
WATER CONSUMED ON SITES FROM REUSED SOURCES Water consumed whose source type is rainwater collected and stored for use, wastewater treated and reused internally, and/or wastewater from another organization.
WASTE VALORIZED Waste, under Technip Energies ownership, whose management type is classified as diverted from disposal.
CLIMATE & ENVIRONMENT
Technip Energies Sustainability Report 2022 . 83
