Total Ties Bonuses to Scope 3 Emission Cuts

France's Total has said it will partly tie executive bonuses to the company's progress in reducing Scope 3 emissions from the use of its products by customers in Europe.

Starting this year, the group's success in reducing these indirect emissions will serve as a criterion for allocating performance shares to its chairman, CEO and other senior executives, the company said in a statement on March 18. Furthermore, existing criteria relating to Total's achievements in its transformation strategy will play a greater role in calculating these bonuses.

Total has set out to reduce its Scope 3 emissions in Europe by 30% by 2030 and bring them down to net zero by 2050, along with its Scope 1 and 2 emissions. Worldwide its targets are less ambitious, with only a 60% cut envisaged for Scope 1, 2 and 3 emissions by 2050. It is aiming for net-zero Scope 1 and 2 emissions globally, however.

The French major says it will achieve these goals by building up its gas business and scaling back oil production, while also investing more in renewables, biofuels and other low-carbon technologies. As part of this change in direction, the board has proposed changing the company's name to TotalEnergies – a decision that will be voted on by shareholders on May 28.

The board also said this week it would renew the contract of CEO Patrick Pouyanne for another term until 2024, assuming shareholders support the reappointment.