CDP 2017 Water 2017 Information Request Total CDP. Module: Introduction. W0.1 Introduction

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1 CDP CDP 2017 Water 2017 Information Request Total Module: Introduction W0.1 Introduction Please give a general description and introduction to your organization Total S.A. (Total), a French société anonyme (limited company) incorporated on March 28, 1924, is, together with its subsidiaries and affiliates, the world s fourth largest publicly-traded integrated oil and gas company. Total employs about 100,000 employees and has operations in more than 130 countries. The 2016 turnover was around 135 billion. Across its global operations, Total is engaged in every sector of the oil and gas industry, including upstream (hydrocarbon exploration, development and production) and downstream (refining, petrochemicals, specialty chemicals, trading and shipping of crude oil and petroleum products and marketing). Total is also involved in the renewable energies and power generation sectors. These activities are broken down in four specialized business segments: Exploration and Production (EP), Refinery and Chemicals (RC), Marketing and Services (MS) and Gas, Renewables & Power (GRP). The latest was created as part of the Group s new organization in The creation of the GRP segment spearheads Total s ambitions in low-carbon businesses by expanding in downstream gas and renewable energies activities, as well as in energy efficiency businesses. This segment brings together the Gas and New Energies divisions (excluding biotechnologies) and a new Innovation & Energy efficiency division. Concerning bioenergies, a new Biofuels division now regroups within the Refining & Chemicals segment all these activities. Total is today a major actor in the solar power field, with activities along the entire photovoltaic value chain (Sunpower and Total Solar). As a leading international oil and gas company, Total aims to become the responsible energy major by helping to supply accessible, affordable and clean energy to as many people as possible. To accomplish this goal, Total leverages its integrated business model, which enables it to capture synergies between the different activities of the Group. To achieve its ambition, Total relies upon its operational excellence, technological expertise and capacity to manage complex projects. The Group s strategy is based on four main priorities: driving profitable, sustainable growth in Exploration & Production s hydrocarbon activities, with priority given to reducing production costs, disciplined investments and cash flow generation; continuing to enhance the competitiveness of major integrated refining and petrochemical platforms; increasing the distribution of petroleum products, particularly in high-growth regions, and offering innovative solutions and services that meet customers evolving needs above and beyond the supply of petroleum products; and expanding along the full gas value chain by unlocking access to new markets, and developing profitable low-carbon businesses, in particular renewable energies. This strategy incorporates the challenges of climate change, using as a point of reference the 2 C scenario of the International Energy Agency (IEA) and its impact on energy markets. Total s challenge is to increase access to affordable energy to satisfy the needs of a growing population, while providing concrete solutions to help limit the effects of climate change and supplying its clients with an energy mix featuring a progressively decreasing carbon intensity. Total also acknowledges the growing pressure on natural resources, including water, which has been identified as a priority in the Group s environmental management and Research & Development (R&D) efforts. The necessity to reduce water use from natural environments, minimize Total s water dependency and lower emissions to water in compliance with local, national and international regulations is thus clearly part of the Group s priorities. The values of respect, responsibility and exemplary conduct underpin Total s Code of Conduct and accompany priority business principles in the realms of safety, security, health, environment, integrity and human rights. It is through strict adherence to these values and principles that Total intends to build strong and sustainable growth for the Group and its stakeholders and deliver on its commitment to better energy. 13 July / 31

2 W0.2 Reporting year Please state the start and end date of the year for which you are reporting data Period for which data is reported Fri 01 Jan Sat 31 Dec 2016 W0.3 Reporting boundary Please indicate the category that describes the reporting boundary for companies, entities, or groups for which water-related impacts are reported Companies, entities or groups over which operational control is exercised W0.4 Exclusions Are there any geographies, facilities or types of water inputs/outputs within this boundary which are not in your disclosure? No W0.4a Exclusions Please report the exclusions in the following table Exclusion why you have made the exclusion Further Information 13 July / 31

3 Module: Current State Page: W1. Context W1.1 Please rate the importance (current and future) of water quality and water quantity to the success of your organization Water quality and quantity Sufficient amounts of good quality freshwater available for use Sufficient amounts of recycled, brackish and/or produced water available for use Direct use importance rating Vital for operations Important Indirect use importance rating Not very important Not very important Water is vital for all of Total s activities. The nature of these activities is such that they have an impact and are dependent on water resources. Total s RC activities represent 80% of Total s freshwater use. At refineries and petrochemicals sites, water is mainly used to produce steam and for cooling purposes. Water availability and quality are thus essential for business continuity. Indirect use of fresh water is not very important given the integrated activities of Total along the entire oil & gas value chain. Total s supply chain doesn t include water intensive products such as agricultural or mining commodity products. However, this topic s importance is expected to rise with the implementation of ISO s new version, which sets more focus on supply chain water quantity use. Total s raw materials supply for the Biofuels activities, which may require water for agricultural products growth, could also increase the materiality of Total s indirect water footprint. Total s use of non-fresh water primarily occurs in once-through cooling processes, and for maintaining reservoir pressure in EP activities. As to Exploration & Production activities, brackish and saline water are mainly used for maintaining reservoir pressure in addition to produced water reinjection, when the latter is not available in sufficient quantity. These types of waters are also used for once-through cooling purposes. It is therefore important for Total to access sufficient amounts of recycled or brackish water to pursue its activities. For the Refining & Chemicals activities, brackish water is also mainly used for once-through cooling purposes. There is no specific dependency to recycled, brackish or produced water identified in Total s supply chain, as Total sources most of its materials internally. No specific product sourced externally significantly uses brackish or recycled water, directly or indirectly. W1.2 For your total operations, please detail which of the following water aspects are regularly measured and monitored and provide an explanation as to why or why not Water aspect Water withdrawals- total volumes % of sites / facilities / operations Total water withdrawal volumes, including breakdown by source, are measured and monitored at all our operated facilities, which is a requirement from our Group environmental reporting company rule and a regulatory requirement in many countries. This indicator thus covers 100% of Total s activities. Water withdrawal is a KPI and volumes are measured at every operated site, including service stations. All the facilities use the group-wide reporting system (HARPE), which allows the monitoring of 32 water quantity indicators and close to 80 quality indicators, as needed. Total also reports its annual aggregated fresh water withdrawal volumes in its Registration Document, to increase its transparency and improve its engagement with stakeholders. Furthermore, sites with a significant water withdrawal (>500,000 m3/year) are further assessed to identify potential water related risks (see 13 July / 31

4 Water aspect Water withdrawals- volume by sources Water discharges- total volumes Water discharges- volume by destination Water discharges- volume by treatment method Water discharge quality data- quality by standard effluent parameters Water consumption- total volume % of sites / facilities / operations risk sections 2 and 3 for more details). All relevant business units measure and monitor the breakdown of water withdrawal by sources, consistently using the water sources categories used in the Group s reporting system (HARPE). In this tool, withdrawals are either directly measured or estimated by source, by fresh (surface or ground), brackish and saline waters. Thus 100% of Total s water withdrawal is monitored. The exception is the Marketing and Services (MS) segment, which only monitors its aggregated withdrawal volumes and therefore does not specify sources breakdown, as this is not deemed to have a significant effect on the Group s water performance. The MS activities are not directly involved in raw materials extraction and only account for 1,9% of the Group s total freshwater withdrawal. In order to optimize the Group s impact on local water resources, Total s business units measure and monitor their total water discharges, apart from the MS segment for which water discharge volumes are monitored for key sites only. This indicator is thus monitored for 100% of relevant sites, which account for 98,1% of total water withdrawal. Water discharge for MS activities is judged not to be material as these activities represent a very limited share of the Group s water withdrawal, (1,9% in 2016) and all the water withdrawn is discharged to either surface freshwater bodies or municipal water networks. However, for two relevant MS sites (bitumen production sites), water discharge data are accounted. All of Total business units report their volumes of water discharges broken down by destination for each operated facility, except in the MS segment. However, the two most relevant sites in the MS segment (bitumen production sites) do report their water discharge by destination. For all other MS sites, all the water withdrawn is discharged back to either surface freshwater bodies or municipal water networks (and therefore does not generate any water consumption). This indicator is thus monitored for 100% of relevant sites, which account for 98,1% of total water withdrawal. The water discharge destinations reported in the group-wide reporting system include: fresh surface water, municipal/industrial wastewater treatment plan, seawater, groundwater, wastewater for another organization. All water discharges are systematically treated (primary and secondary treatment) across all Total s operations, except MS activities. However, the two most relevant sites in the MS segment (bitumen production sites) do report their water discharge by destination. For all other MS sites, all the water withdrawn is discharged back to either surface freshwater bodies or municipal water networks (and therefore does not generate any water consumption). This indicator is thus monitored for 100% of relevant sites, which account for 98,1% of total water withdrawal. Therefore, even though it s not formalized as an indicator, this aspect is part of the Group rules and applies to all its operating sites. In accordance with its publicly disclosed targets to reduce the hydrocarbon content of its water discharge at both its onshore and offshore sites, Total monitors this aspect. It is thus monitored in 100% of the group s sites. Indeed, the Group defined in early 2016 a new set of coherent environmental targets aligned with the period of which to maintain hydrocarbon content of water discharges below 30 mg/l for offshore sites and below 15 mg/l for onshore and coastal sites. Total monitors close to 80 quality indicators, as needed. All of Total business units report their total volumes of water consumption for each operated facility in the groupwide reporting system, except in the MS segment where the water consumption is not judged to be significant. MS activities account for a very marginal share of the Group s total withdrawal (1.9%), and all the water withdrawn is discharged back to either surface freshwater bodies or municipal water networks (and therefore does not generate any water consumption). However, the two most relevant sites in the MS segment (bitumen production sites) do monitor and report their water consumption. Water consumption is thus measured at 100% of Total s sites. 13 July / 31

5 Water aspect Facilities providing fullyfunctioning WASH services for all workers % of sites / facilities / operations Despite the lack of a quantitative indicator on the proportion of sites providing all necessary water, sanitation and hygiene services, Total does have strict internal industrial hygiene rules on health risks management, including the provision of these services. Total s global activities make the provision of services aligned with WASH guiding principles extremely relevant for its workforce, and therefore these aspects are closely monitored and part of the group s regular audit processes. Total is committed through its code of conduct and the 2015 IndustriALL agreement signed by the CEO to respect the ILO convention which requests employers to provide employees with adequate work conditions, including access to potable water, toilet facilities. The audits conducted with Goodcorp since 2002 on this aspect have never revealed any issue. As a consequence, this aspect is closely monitored beyond WASH standards, across 100% of Total s operations. W1.2a Water withdrawals: for the reporting year, please provide total water withdrawal data by source, across your operations Source Fresh surface water Brackish surface water / seawater Quantity (megaliters / year) How does total water withdrawals for this source compare to the last reporting year? About the same Lower Rainwater 305 Much higher Comment Total s fresh surface water withdrawal was stable in 2016 compared to previous year, with a 2% decrease in absolute terms (48,919 in 2015). Approximately 80% of the fresh water withdrawals were taken by the Refining & Chemicals segment in At refineries and petrochemicals sites, water is mainly used to produce steam and for cooling units. Increasing recycling and replacing water cooling with air cooling, such as at the Normandy and Antwerp refineries, are Total s preferred approaches for reducing fresh water withdrawals. The reuse of water was also investigated at Gonfreville as part of the E4Water program. As to EP s activities, all affiliates with production and exploration activities accounted for their fresh surface water withdrawal. EP s freshwater withdrawal mainly results from domestic waters use, and water injection for pressure maintenance. The MS segment accounts for a non-significant share of the Group s total withdrawal. Total s brackish surface water/seawater withdrawal has been lower in 2016 compared to previous year, with a 18% decrease in absolute terms (98,000 in 2015). This has been consistently calculated through the groupwide reporting system. The main use of brackish/seawater occurs in the EP segment as a mean to maintain reservoirs pressure over time. The withdrawal decrease reflects the project portfolio evolution, as illustrated by the Pazflor (Angola) site. The decline in Pazflor s production has implied a significant reduction of seawater withdrawal at Group level. In the RC segment, brackish water/seawater is only used for oncethrough cooling purposes. It is thus directly returned to the withdrawal body and not accounted in the withdrawal figures. The brackish / seawater indicator is not relevant for the MS segment. Total s accounting for rainwater withdrawal has improved and led to a much higher number in 2016 compared to previous year, with a 26% increase in absolute terms (243 in 2015). This strong variation (over a limited volume) is linked to both changes in local rainfall conditions and improved estimation approach/monitoring capacity (in the Grandpuits refinery for instance). The rainwater indicator is not relevant for the MS segment. 13 July / 31

6 Source Groundwater - renewable Groundwater - nonrenewable Produced/pro cess water Municipal supply Wastewater from another organization Quantity (megaliters / year) Lower How does total water withdrawals for this source compare to the last reporting year? 0 Not applicable About the same Higher 9 About the same Total Lower Comment Total s groundwater withdrawal has been lower in 2016 compared to previous year, with a 9% decrease in absolute terms (20,528 in 2015). This has been consistently calculated through the group-wide reporting system. In the RC segment, a notable decrease in groundwater abstraction occurred at petrochemical site in the east of France further to definitive shut down of a steam cracker. The MS segment accounts for a nonsignificant share of the Group s total withdrawal (only 1.9% of the Group s total freshwater withdrawal) therefore its water withdrawal breakdown by source is not monitored. Total does not withdraw fossil / non-renewable groundwater resources for its operations, and therefore this indicator is not applicable. Total s produced / processed water withdrawal has been stable in 2016 compared to previous year, with a 2% decrease in absolute terms (50,646 in 2015). This has been consistently calculated through the group-wide reporting system where relevant. This indicator accounts for EP activities produced water only since EP and RC processed water is already accounted for in the others water withdrawal indicators. The produced/processed water indicator is not relevant for the MS segment. Total s municipal water withdrawal has been higher in 2016 compared to previous year, with a 12% increase in absolute terms (44,484 in 2015). This has been consistently calculated through the group-wide reporting system. Total primarily relies on this water source for its RC activities. The withdrawal increase is linked to the variation of Total assets activities in 2016 (Including Donges refinery restart, which is 100% dependent on municipal supply). The MS segment accounts for a non-significant share of the Group s total withdrawal (only 1.9% of the Group s total freshwater withdrawal) therefore its water withdrawal breakdown by source is not monitored. Total s wastewater from another organization withdrawal has been stable in 2016 compared to previous year (9 in 2015). This has been consistently calculated through the group-wide reporting system. This water withdrawal source is not significant. Total s total water withdrawal has been lower in 2016 compared to previous year, with a 5,1% decrease in absolute terms (262,829 in 2015). As illustrated by the figures above, this change is mainly driven by the lower brackish/seawater withdrawal compared to 2015, due to the variation in assets operations. Of note, this data is different from the water withdrawal indicator followed in Total s annual registration document, which only accounts for the total fresh water withdrawal. 13 July / 31

7 W1.2b Water discharges: for the reporting year, please provide total water discharge data by destination, across your operations Destination Quantity (megaliters/year) How does total water discharged to this destination compare to the last reporting year? Comment Total s water discharge to fresh surface water has been stable in 2016 compared to Fresh surface water About the same previous year: less than 0.01% higher (vs. 64,464 in 2015). Total s water discharge to fresh surface water has decreased in 2016 compared to Brackish surface 5909 Lower previous year: -12% (vs. 6,695 in 2015). This is due to the variation in Total s assets water/seawater activities compared to previous year. Groundwater 0 Not applicable Total does not discharge water to phreatic groundwater resources. Municipal/industrial wastewater treatment plant Wastewater for another organization Higher 203 Higher Total About the same Total s water discharge to municipal networks has increased in 2016 compared to previous year: +12% (vs. 12,234 in 2015). This is due to the variation in Total s assets activities compared to previous year. Total s wastewater discharge to other organizations have increased in 2016 compared to previous year: +4,63% (vs. 194 in 2015). This is due to the variation in Total s assets activities compared to previous year. The total water discharge from Total s activities have been stable in 2016 compared to previous year: +1% (vs. 83,426 In 2015). W1.2c Water consumption: for the reporting year, please provide total water consumption data, across your operations Consumption (megaliters/year) Higher How does this consumption figure compare to the last reporting year? Comment Total s water consumption for 2016 is higher than the 2015 figure by 9,7% (vs. 44,018 in 2015). While the consumption associated with the EP segment has been very stable (+1%), the rise in total consumption has mainly occurred in the RC activities accounting. The RC segment accounts for approximately 75% of the Group s total consumption, and has seen an increase in its 2016 consumption figure (+11,25%). This higher figure is mainly due to a better granularity in data reported in 2016, notably taking into account water salinity of recipient environment: in some cases, freshwater discharge has been requalified to brackish water due to the salinity of the destination water bodies, and hence has been counted as consumption. The evolution of Total s operational perimeter in the GRP segment has also generated a rise in water consumption for these activities. W1.3 Do you request your suppliers to report on their water use, risks and/or management? 13 July / 31

8 W1.3a Please provide the proportion of suppliers you request to report on their water use, risks and/or management and the proportion of your procurement spend this represents Proportion of suppliers % Total procurement spend % Rationale for this coverage W1.3b Please choose the option that best explains why you do not request your suppliers to report on their water use, risks and/or management Primary reason W1.4 Has your organization experienced any detrimental impacts related to water in the reporting year? Yes W1.4a Please describe the detrimental impacts experienced by your organization related to water in the reporting year Country France United States of America River basin Loire Sabine River Impact driver Impact Description of impact Phys-Pollution of water source Reg-Regulation of discharge quality/volumes leading to higher compliance costs Fines/ penalties Fines/ penalties On the 5th of April 2016, the pipe connecting the Donges refinery to the Vern-sur-Seiche depot has been damaged due to earthwork being carried out by a third party in the area. This resulted in approximately 400m3 of vegetal oil methyl ester being spilled in the local environment. The Port Arthur refinery (Texas) received a fine for exceeding the permitted daily effluent limits (suspended solids and cyanides). Length of impact Punctual Punctual Overall financial impact This has resulted in a 1,500 fine. This has resulted in a 24,000 USD fine. Response strategy Engagement with public policy makers Engagement with public policy makers Description of response strategy Despite not being directly responsible of the damage, Total proactively collaborated with local authorities to limit the spill s impact on the local environment and allow site remediation. The fine was purely procedural. Total has managed this fine and conducted the necessary corrective actions. W1.4b Please choose the option below that best explains why you do not know if your organization experienced any detrimental impacts related to water in the reporting year and any plans you have to investigate this in the future Primary reason Future plans Further Information 13 July / 31

9 Module: Risk Assessment Page: W2. Procedures and Requirements W2.1 Does your organization undertake a water-related risk assessment? Water risks are assessed W2.2 Please select the options that best describe your procedures with regard to assessing water risks Risk assessment procedure Comprehensive company-wide risk assessment Coverage Scale Direct operations and supply chain All facilities and suppliers Given the integrated nature of its activities, the group mainly focuses on its direct operations with a comprehensive company-wide risk assessment approach, but also looks at suppliers exposure where relevant. Water resources management is evaluated and monitored during risk management committees, where it has been identified as a key risk factor. Water-related risks are systematically evaluated as part of projects environmental impact assessment in their prospect and design phases. The risks associated with water management are also anticipated through the annual Long-Term Plan. It includes water production/injection/discharge analysis over the next 10 years. It analyses the CAPEX risks associated with water management. Total uses the Global Water Tool for a high-level assessment, and identifies sites most exposed to water risks using the Local Water Tool. Total s supply chain doesn t include water intensive products such as agricultural or mining commodities but supply chain water risks are assessed where relevant. The GRP segment sources photovoltaic devices for its solar power activities. Total has performed a life cycle analysis of these devices, including water in line with the ISO14046 standard. Total is currently installing solar panels on 5000 petrol stations of its network. The water risks supply chain assessment may be further applied as Total develops its biofuel activities. Total thus assesses the water risks associated with 100% of its relevant suppliers. W2.3 Please state how frequently you undertake water risk assessments, at what geographical scale and how far into the future you consider risks for each assessment Frequency Six-monthly or more frequently Geographic scale River basin How far into the future are risks considered? >6 years Annually River basin >6 years Comment As part of the CORISK process, all new projects (acquisitions, sales) above a certain financial threshold are screened upon numerous parameters, including the level of water risks. The CORISK process is activated very frequently, as significant projects are regularly analyzed, and considers risks in the long term when relevant. The main water indicator requires evaluating the activity's impact on water resources when these are constrained by limited natural annual fluxes compared to local needs. A prospective approach to water risks is undertaken annually through the Group s Long-Term Plan. Prediction for next 10 years includes water use, produced water production and discharge. This is presented at the highest management level of Total. It includes an evaluation of the water-related expenditures, and allows an alignment of the strategy with the evolution of water risks: the evolution of regulatory requirements, and their 13 July / 31

10 Frequency Geographic scale How far into the future are risks considered? Every two years River basin >6 years Sporadically not defined River basin >6 years Comment potential consequences on CAPEX are part of the assessment. The WBCSD Global Water Tool (specific to Oil & Gas) is used internally on a regular basis (last assessment done upon 2016 data) to generate a high level screening of Total s exposure to watershed water stress. This indicator is monitored internally to have a global picture of Total s sites and global portfolio exposure to hydric stress with a 2025 time horizon. This approach may also be used to assess a prospect s exposure to local water stress. The regular use of the GEMI s Local Water Tool provides a water risk assessment based on current and prospective water local externalities and risks conditions. Therefore, the risk assessment remains valid over a significant period of time. This assessment is made taking into account local water conditions at local basin level, including even more granular local conditions. For instance, the local risk of facing droughts is evaluated on a 10 years pattern where relevant. W2.4 Have you evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy? Yes, evaluated over the next 10 years W2.4a how your organization evaluated the effects of water risks on the success (viability, constraints) of your organization's growth strategy? A prospective approach to water risks and their potential impact on Total s growth is undertaken annually as part of the Long-Term Plan, with prediction for next 10 years includes water use and produced water production / injection / discharge. This exercise is presented at the highest management level of the company and is thus embedded into the Group s strategy. It includes an evaluation of the costs associated with water-related CAPEX / OPEX, which allows an alignment of Total s strategy with the evolution of water-related risks: the evolution of regulatory requirements and their potential consequences on the company s CAPEX are for instance part of the assessment. Hence, Total regularly assesses its business strategy against current and future water regulations at Group level. Moreover, the annual budget elaboration process includes a forecast of upcoming water related expenses. At project level, the evaluation of water-related risks (risk of pollution to drinking groundwater, evaluation of risks associated with water discharge...) is core to the systematic environmental impact assessment along every project assessment phases (prospect, preliminary, detailed studies etc.). Each of these assessments are followed by a stage gate review and a decision process regarding the go / no go of the project; in this way, the water risks are fully integrated into the growth strategy of the company. Detailed studies relating to water management are established according to projects scope and nature. For instance, water-related risks analysis at every step of the Djeno Water treatment project in Congo have resulted in 72 million USD being invested in 2016 to debottleneck water treatment, maintain water treatment performance and allow additional water flow from new development projects. Even though this CAPEX is not significant at Group level, it is at project level and it allowed an integration of local water risks in the site s growth strategy. For operating sites, further to the assessment process described above, sites potentially exposed to water risk or with a significant impact on water resources, conduct a Local Water Tool assessment, which includes other relevant risks externalities (supply reliability, resource and treatment costs ). This participates in ensuring the continuity of these sites operations, and therefore their contribution to Total s growth. W2.4b What is the main reason for not having evaluated how water risks could affect the success (viability, constraints) of your organization's growth strategy, and are there any plans in place to do so in the future? 13 July / 31

11 Main reason Current plans Timeframe until evaluation Comment W2.5 Please state the methods used to assess water risks Method GEMI Local Water Tool Internal company knowledge IPIECA Global Water Tool for Oil & Gas Life Cycle Assessment how these methods are used in your risk assessment Before 2016, Total used the World Business Council for Sustainable Development s (WBCSD) Global Water Tool (GWT) for Oil & Gas as a KPI. This tool relies on the WRI water stress definition. It is used for global screening purposes, for a high-level monitoring of Total s exposure to water scarcity geographical evolution. The latest assessment (2017) therefore provided an indicative only and extremely conservative figure: 44% of Total s operated sites considered to be located in water-stressed regions (below 1700 m3/person/year of water availability). Taking into account this lack of granularity and overly high percentage of sites perceived as having a water risk expressed as water stress, Total concluded that the Local Water Tool (LWT) developed by the Global Environmental Management Initiative (GEMI) was more suitable to assess its sites water risks. The LWT is now used to perform the Group s site water risk assessments, rather than reliance on a strict water stress indicator provided by the Global Water Tool. The LWT scores best guide the improvement actions needed to reduce these water related risks in order to optimize the use of water resources at these sites. The GWT however remains used for screening purposes by our Group. Total identifies the levels of risk of its sites that withdraw more than 500,000 m³ per year and which are located in areas potentially exposed to water resource risks, this using the Local Water Tool (LWT). This tool also helps to guide the actions taken to mitigate these risks in order to make optimal use of water resources on these sites. Since 2016, the level of water risk was assessed on 10 Group sites: 7 Refining & Chemicals sites and 3 Exploration & Production sites. This assessment will gradually be extended to 13 more priority sites that have already been identified. A plan to optimize the use of water resources on these sites may be drawn up, depending on the nature of the risks and impacts. In the RC segment, Life Cycle Analyses (LCA) of new products are performed to quantify their dependency on natural resources, including water, and identify potential environmental hotspots. LCAs are also used as part of the Group s renewable power activities. In addition to these formalized tools, Total also relies on its strong internal water expertise, including projects environmental impact assessments, water-related R&D, to best anticipate the water risks associated with its activities. W2.6 Which of the following contextual issues are always factored into your organization's water risk assessments? Issues Current water availability and quality parameters at a local level Current water regulatory frameworks and tariffs at a local level Current stakeholder conflicts concerning water resources at a local level Choose option Total continuously monitors its water resources use at site level (water withdrawal) as well as its effluents quality over which Total has set public targets. This is done through the internal reporting system (HARPE). Current water availability and quality are annually reported at Group level, which fulfills the Group s annual reporting requirements. The same process is conducted at site level to meet local regulatory requirements. This allows the identification of priority sites that are environmentally sensitive in terms of water resources (> 500,000 m3/year, threshold set by Total). For these sites, a risk assessment through the Local Water Tool (LWT) is performed, which includes an analysis of water availability and quality parameters at local level. Local regulations and water tariffs are likely to affect the continuity of Total s operations and are consistently tracked and monitored by relevant affiliates (in particular for the refining and chemical segments, which are generally located in developed countries with water pricing). For the sites identified as priorities, the risk assessment performed through the Local Water Tool includes current water regulatory frameworks and water tariffs parameters. Total actively engages with its key stakeholders (local communities, NGOs, government bodies, etc.) on all subjects, including water use. Total has tools in place to manage potential stakeholder conflicts including those potentially linked to water: Stakeholder Relationship Management (SRM+) is Total s 13 July / 31

12 Issues Current implications of water on your key commodities/raw materials Current status of ecosystems and habitats at a local level Current river basin management plans Current access to fully-functioning WASH services for all employees Estimates of future changes in water availability at a local level Estimates of future potential regulatory changes at a local level Estimates of future potential stakeholder conflicts at a local level Choose option internal tool to identify stakeholders expectations and build relevant action plans to address them, during projects complete lifecycle. Total also sets grievance mechanisms where relevant in order to adequately manage its local stakeholders relations. For the sites identified as priorities, the risk assessment performed through the Local Water Tool includes current local reputation and social activism parameters. Total s main commodities are oïl and gas, which are essentially supplied internally by its EP segment. The application of risk management processes such as the Global and Local Water tools and the use of internal company knowledge thus directly assesses the current implications of water on Total s key commodities or raw materials. For RC activities, in addition to oil, water as a commodity is essential for industrial processes (steam production, cooling water). RC water risk management also relies on internal company knowledge and uses the internal monitoring system. The same applies for Total s renewable power activities. This dimension is thus a key part of Total s water risk management. The impact of Total s activities on ecosystems and habitats at local level are systematically assessed through environmental impact assessment studies. Total identifies the levels of risk of its sites that withdraw more than 500,000 m³ per year and which are located in areas potentially exposed to water resource risks, this using the Local Water Tool (LWT). The risk assessment performed through the Local Water Tool includes current local ecosystems (based on UNE(P)-WCMC PROTEUS program data) and watershed ecosystems parameters. Total identifies the levels of risk of its sites that withdraw more than 500,000 m³ per year and which are located in areas potentially exposed to water resource risks, this using the Local Water Tool (LWT). The risk assessment performed through the Local Water Tool includes current river basin management plans. Total s global activities make the provision of services aligned with WASH guiding principles extremely relevant for its workforce, and therefore these aspects are closely monitored and part of the Group s regular audit processes. Total is committed through its code of conduct and the 2015 IndustriALL agreement signed by the CEO to respect the ILO convention which requests employers to provide employees with adequate work conditions, including access to potable water, toilet facilities. The audits conducted with Goodcorp since 2002 on this aspect have never revealed any issue. It is thus integrated through external audit and internal company knowledge (monitoring). Total s strategy for estimating future changes in water availability on a local level will rely on its sites monitoring and its water risk management strategy (sites screening, Local Water Tool, valuation). The regular update of Local Water Tool assessments is essential to ensure that water management is aligned with any changes in water resources availability (including from Climate Change). This is seen as a potential key risk for Total s future activities relating to water (in particular for RC). The current Local Water Tool results consider Climate Change as an externality, although challenging to quantify (thus the need for robust monitoring and updating of the Local Water Tool to allow for adaptive management at the site level). Total monitors potential regulatory changes at corporate, affiliates and sites levels. As part of the company annual long term plan exercise, the potential impact of future regulatory changes on Total s CAPEX is assessed. The future potential regulatory changes upon water are therefore embedded in Total s risk assessment process is thus based on internal Company knowledge. Through Total s group-wide stakeholders relationship management system (SRM+), trends analysis are conducted to identify potential future stakeholders conflicts at local level. Grievance mechanisms have also been set where relevant, in order to anticipate potential stakeholders conflicts. Total also closely monitors its media and NGO coverage. This is based on internal company knowledge, as each entity 13 July / 31

13 Issues Estimates of future implications of water on your key commodities/raw materials Estimates of future potential changes in the status of ecosystems and habitats at a local level Scenario analysis of availability of sufficient quantity and quality of water relevant for your operations at a local level Scenario analysis of regulatory and/or tariff changes at a local level Scenario analysis of stakeholder conflicts concerning water resources at a local level Scenario analysis of implications of water on your key commodities/raw materials Scenario analysis of potential changes in the status of ecosystems and habitats at a local level Other Choose option Not evaluated has a dedicated workforce to manage stakeholder relations and anticipate potential future conflicts. Total s main commodities are oïl and gas, which are essentially supplied internally by its EP segment. The application of risk management processes, such as the Global and Local Water tools and the use of internal company knowledge also intend to estimate the future implications of water on Total s key commodities or raw materials. For RC activities, in addition to oil, water as a commodity is essential for industrial processes (steam production, cooling water). RC water risk management also relies on internal company knowledge and uses the internal monitoring system. The same applies for Total s renewable power activities. Estimates of future potential changes in the status of ecosystems and habitats at a local level are part of the parameters on the Local Water Tool assessment for priority sites. Priority sites are defined as sites that withdraw more than 500,000 m³ per year and which are located in areas potentially exposed to water resource risks. In addition, Total s GIS tool (HSEQ maps) provides monthly updates on ecosystems and habitats status and some potential future protected areas (UNESCO), through the MOU with UNE-WCMC program PROTEUS (annual costs 100 KUSD). Water quality and quantity risk assessments (for chronic and accidental risk) have been conducted for all our operated sites in 2014 to identify control measures to reduce risk levels. Total is developing a multisite mapping tool based on the LWT integrating scenarios (including climate change impacts, social/competition on use, or regulatory change, overlap with water stress etc.). Total participated and benefited from a Water Visioning exercise ( Water Visioning: from now to 2030 was also conducted through IPIECA, members only document, presented at World Water Week in August 2016 at Stockholm) to establish key water scenarios (overlap of sites within water risk areas and varying water management options) for the O&G by 2030 and offering response orientations which are being assessed internally in light of our current water management framework. Total is developing a multisite mapping tool based on the Local Water Tool integrating scenarios (including climate change impacts, social/competition on use, or regulatory change, overlap with water stress etc.). Total is developing a multisite mapping tool based on the Local Water Tool, integrating scenarios (including climate change impacts, social/competition on use, or regulatory change, overlap with water stress etc.). Through this tool, Total aims to establish scenario analysis of stakeholder conflicts concerning water resources at a local level. Total s projects design process (through feasibility studies) includes scenario analysis to ensure adequate water commodities will remain available over the project lifetime. It is thus factored in projects risk assessment through internal company knowledge. Total s projects environmental impact assessment (EIA) include a scenario analysis of potential changes in the status of ecosystems and habitats at a local level. It is thus factored in projects risk assessment through internal company knowledge. 13 July / 31

14 W2.7 Which of the following stakeholders are always factored into your organization's water risk assessments? Stakeholder Customers Employees Investors Local communities NGOs Other water users at a local level Regulators Choose option In order to optimize its relationships with its stakeholders and anticipate potential risks, Total has implemented an internal Stakeholder Relationship Management methodology known as SRM+ to professionalize the societal approach of its units, affiliates and sites. SRM+ is designed to help users identify and map their main stakeholders, engage with them and understand their perceptions and challenges. This information can then be leveraged to devise an action plan for building long-term relationships, and thus assess and manage the associated risks. For its relevant activities, Total engages with its customers upon its responsible management of water resources through internal and external certifications, such as Total Eco Solutions products, sites ISO14001 certifications, cradle to cradle certification for renewable. For individual customers (MS activities only) Total engagement method include grievance mechanisms at local level and ad-hoc awareness raising initiatives. Each MS entity at the lowest level of granularity is required to maintain a complaint register, gathering potential claims from local stakeholders which allows stakeholders relations management (all categories). As primary stakeholders to Total s activities, employees are part of the SRM+ stakeholder relationship management system, and hence potential risks linked to water are monitored. Also, through the ISO14001 EMSs, employees are able to report on water-related risks at site level. The identified risks are then assessed internally via the EMS management to determine how to best manage these. In addition to CDP disclosure, Total s Registration Document contains a specific chapter on water management that provides transparent information on the Group s most material subjects including water. Total also discloses its environmental information, including water-related KPIs, to numerous rating agencies, such as but not limited to DJSI, Sustainalytics and the GRI. More broadly, Total s transparency towards financial markets means that investors appreciation of the potential water risks affecting Total is constantly taken into account. Total also proactively participates in the elaboration of environmental norms for the financial sector (IFC EHS guidelines for Oil & Gas for instance). Local communities are part of the SRM+ system described above and hence potential risks linked to water are monitored. Local communities are a key stakeholder for a resource sharing point of view (eg farming and livestock, fishing neighboring activities). Where relevant, Total has implemented local grievance mechanisms to engage with local communities and therefore assess and anticipate conflict risks. For certain projects, a net positive water impact has been generated. For instance, in Yemen, the company provides m3 of freshwater/day to local communities. As key local stakeholders to Total s activities, NGOs are part of the SRM+ stakeholder relationship management system, and hence potential risks linked to water are factored in Total s water risks assessment. Total engages proactively with NGOs through several local partnerships (e.g. GIZ in Uganda, in order to support local communities water resources protection). Where relevant, Total has implemented local grievance mechanisms to engage with local NGOs and anticipate conflict risks. Given the important volumes of water required for Total s activities (especially in the RC segment), maintaining a constructive a constructive dialogue with other water users at a local level is essential. The use of the SRM+ stakeholder management system, and the implementation local grievance mechanisms allow Total to engage with other local water users and anticipate conflict risks. Specific engagement points with this stakeholder category also include potential water reuse opportunities for third parties (e.g. Cray Valley water cooling). In terms of risk assessment, the Local Water Tool allows the identification of other water users and any potential water use conflicts (different water categories: surface water, groundwater, municipal and network supplied water, brackish water, seawater and salty groundwater). Total conceptualizes and develops its projects in partnership with regulators in order to meet all relevant regulations. As part of its annual Long Term Plan exercise, Total anticipates future regulatory changes that are likely to affect its CAPEX. As a consequence, regulators are systematically factored in its water-related risk assessments. Moreover, Total 13 July / 31

15 Stakeholder River basin management authorities Statutory special interest groups at a local level Suppliers Water utilities at a local level Other Choose option Not relevant, Not evaluated proactively participates in public consultations over regulatory changes. Example: consultation on the transposition of European regulation into French Law regarding water discharge. This participation is made either directly or through the relevant professional organizations (CONCAWE, UIC, UFIP, IOGP). As coordinators of local water resources, river basin management authorities are relevant stakeholders to Total s projects. Where relevant, Total engages with river basin management authorities through direct dialogue, in order to ensure the compliance of its operations with local water management rules, and thus adequately manage water-related risks (water quotas or environmental permits). For example, in the Mahakam delta (Indonesia), Total has maintained a constant dialogue with the local government in charge of river basin management. In France, Total has engaged with the Seine watershed regulatory authority concerning the closure of one of its open-loop cooling system (Normandy refinery). On a general basis, Total engages proactively with local interest groups at local level to optimize its social license to operate. Where relevant, Total engages and maintains a constant dialogue with local fishery associations for instance. This is the case in French Guyana. As another instance of relations with special interest groups, Total also has a unique partnership with a veterinary center specialized in managing oiled aquatic fauna. These groups are identified in the SRM+ internal system, and hence potential risks linked to water are factored in Total s water risks assessment. Suppliers are part of the SRM+ stakeholder relationship management system and hence potential risks linked to water are factored in Total s water risks assessment. An environmental and social risk appraisal for our supply chain was conducted and focused on human rights, sustainability, energy efficiency, resource efficiency (water, minerals, utilities, waste). To date, Total s suppliers are not deemed to include significant users of water, namely none are providing the Group with raw agricultural products / by-products (that are by definition water intensive). This position will evolve depending on the development of biofuels activities by the Group, as agricultural products are more exposed to water risks. As part of its project feasibility studies, Total engages with local water utilities through dialogue and contractual agreements, to ensure the continuity of its access to local water resources. Water costs from water utilities are factored into risk assessments through the Long-Term Plan annual assessment, which anticipates OPEX rise due to higher water costs. The Local Water Tool assessment also incorporates this parameter. W2.8 Please choose the option that best explains why your organisation does not undertake a water-related risk assessment Primary reason Further Information 13 July / 31