LINK COMPENSATION TO ESG ROADMAP PERFORMANCE ANNUALLY ESG targets and key performance indicators as part of Technip Energies remuneration policies: Annual Performance Bonus and Long-term incentive programs.
YEARLY ABC TRAINING FOR ALL AT RISK FUNCTIONS AND GATEKEEPERS Identified risk functions in the company who completed the e-learning Anti-bribery and Corruption: the Basics in 2022.
CONTINUED REDUCTION OF NON-MANDATORY COMMERCIAL INTERMEDIARIES Eliminate commercial consultants or distributors interacting on Technip Energies behalf in a sales capacity with our clients in countries where is not mandatory per national law.
CARBON FOOTPRINT METHODOLOGY
At Technip Energies, we engage with our various stakeholders to find and develop solutions to assess and reduce our global carbon footprint, including all direct and indirect greenhouse gas (“GHG”) emissions – whether scope 1, 2 or 3, as defined in the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol). Since 2021, we have reshaped our approach regarding climate change adaptation and mitigation. With the mobilization of a fully dedicated Climate Change and Actions team, our approach has been reviewed and confirmed with the support of well-recognized third parties in order to ensure a fully transparent and consistent approach, sound follow-up and tracking of our reduction objectives. In 2022, we have developed our set of methodologies and calculation guidelines and are expanding our reporting to cover our entire scope 3 for both upstream and downstream emissions, our scope of avoided emissions, set a scope 3 emissions reduction and avoided emissions maximization targets. We have aligned our methodologies and calculation guidelines as much as possible to the Greenhouse Gas Protocol requirements while the ISO and EN standards have been used as guidance even if initially, these two sets of standards have not been developed neither for an engineering company nor for an EPC contractor. Specificities and reasons are highlighted and described below.
REPORTING BOUNDARIES
Technip Energies generates GHG emissions through its various activities: 1 Activities related to buildings, offices, factories, employees and
associated commodities; 2 Activities related to projects or “sold products”:
a. Project management services, assistance to client, sales of process licenses, engineering and design activities mainly in our offices throughout the world;
b. Procurement, manufacturing, subcontracted construction activities, installation on onshore/offshore sites including the transport and reception of purchased equipment from vendors, as well as project activities related to commissioning and start-up;
c. Manufacturing activities of equipment (such as loading systems and ethylene furnaces) in industrial buildings owned by Technip Energies.
All these generated GHG emissions are reported and split between scopes 1 & 2, scope 3 upstream and scope 3 downstream based on the Greenhouse Gas Protocol which establishes comprehensive global standardized frameworks to manage GHG emissions. Technip Energies’ GHG emissions related to all scopes are consolidated and reported as per the following boundaries: equity share approach; where Technip Energies’ equity share is marginal (under 15%), related carbon footprint is reported under category 15 – Investment. Only very few legal entities fall down into this category while for other cases, the emissions are reported in the appropriate scope 3 categories
SCOPE 1 & 2 Following equity share approach and aligned with our financial reporting under IFRS 16, only emissions related to our own use of permanent assets are reported in scopes 1 and 2 as part of Technip Energies assets while temporary facilities and other activities related to our clients’ assets (i.e. our projects) are reported separately under scope 3. For these types of activities, with the addition of our business travel,
employee commuting and other activities related to our own assets and people, which represent Technip Energies’ carbon footprint as an engineering and services company, carbon footprint annual reporting is based on actual accounted quantities for each calendar year. Quantification methods used for the inventory are in accordance with best practice as followed by the GHG Protocol, based on the most recently available emission factors. Usage or “activity” data from emission sources is used to calculate the emissions. The activity data is multiplied by the correlating emission factor, as defined in the GHG Protocol, or by engineering evaluations for the respective activities. The formula for calculating emissions is: Activity Data x Emission Factor = (CO2, CH4, N2O, HFC, HCFC, SF6) Emissions.
All GHG emissions are calculated in metric tonnes of pollutant and converted to metric tonnes of CO2 equivalent (or “CO2 eq”) using the corresponding global warming potentials (GWP). The GWPs allow policymakers to compare the impacts and reductions associated with various gases in our environment, relative to a reference gas. Carbon dioxide is the reference gas and has a GWP equivalent to 1. GWPs for Technip Energies’ inventory are taken from the Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) using 100-year values. For direct emissions (scope 1), fuel-specific emission factors for CO2, CH4, N2O are used for all sites worldwide using DEFRA emissions dataset. Technip Energies’ inventory follows the location-based accounting method to calculate scope 2 emissions. Following the Scope 2 Guidance from the GHG Protocol, Technip Energies uses the national or regional emission factors for indirect (scope 2) emissions defined by the following methods in each relative geography where Technip Energies operates: International Energy Agency (IEA) CO2 Emissions from Fuel
Combustion; for US sites: US EPA Emissions & Generation Resource Integrated
Database (eGRID).
Emission factors were selected based on the following hierarchy: regional or subnational grid average (US only) > National production. For the 2022 inventory, we collected financial and operational data from each site greater than 500 m2 which in total represents more than 99% of the total surface of the buildings owned or rented for our business operations. One site in India is excluded from the reporting since it is maintained closed and not in operation. One site in Houston, which is 100% subleased and does not contribute to our business operations, is accounted in scope 3.13. The data management process includes the collection of electricity, heat, cooling and fuels consumption as well as refrigerants leakages, that is monthly fulfilled by data owners. Data is controlled by the regional Real Estate Manager before being published. Activity data is converted to the appropriate units for calculating emissions with standard emission factors. When data is not available for one or several months for one building (e.g. because the invoice is not yet available), the energy consumption is estimated on the basis of the data history related to previous months and years. To cover the sites not included in the data collection (sites < 500 m2 and a non-active site), we have voluntarily and conservatively added a contingency of 3% to the total volume of GHG emissions related to our buildings. One of the main tools used in Technip Energies for data consolidation, analytics, visualization and monitoring of our CO2 emissions has been developed internally. This dashboard is the basis of the site inventory and energy uses for GHG reporting. The data management process includes the collection of invoices and other primary evidences (procurement
WOMEN HIRING ON YEARLY GRADUATE INTAKE Newly graduated employees hired on payroll (college, bachelor, master, PhD) with up to 2 years of professional experience.
WOMEN IN LEADERSHIP POSITIONS Permanent women employees in positions classified as band 15 or above (internal job classification).
MAIN COUNTRIES HAVE LOCAL DIVERSITY ACTION PLAN Countries, where Technip Energies has the biggest headcount (France, India, Italy, the USA, United Arab Emirates, Malaysia, Spain, United Kingdom, the Netherlands, and Colombia), need to develop their own action plans to improve diversity based on local context.
ELIGIBLE CONSTRUCTION SITES WITH BBS PROGRAM HSE accountable projects with EPC activities and having a peak manpower above 500 workers that implemented Behavior-based Safety Program.
EMPLOYEES PARTICIPATING IN THE ESG LEARNING Permanent employees who completed the e-learning Together by T.EN about Technip Energies ESG strategy and roadmap.
TOTAL RECORDABLE INCIDENTS RATE (TRIR) Total number of Recordable cases (RC) x 200,000 / Worked hours.
VOLUNTEERING HOURS Hours spent by Technip Energies employees and stakeholders (such as, subcontractors, employees’ family, clients, etc.) during an action or activity that creates a long-term positive impact in the communities where we live and work.
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Impact Book
Technip Energies Sustainability Report 2022 . 8584 . Impact Book