Key facts
- TotalEnergies must formally assess and report on environmental risks from the use of its products.
- The ruling specifically includes indirect 'Scope 3' emissions, such as CO2 from car exhausts using its fuels.
- The court did not find TotalEnergies legally liable for its customers' behavior.
- The company was not ordered to halt new oil and gas projects or reduce production.
- This is the first application of France's 2017 duty of vigilance law.
A Paris court has ruled that French energy company TotalEnergies must account for its indirect emissions, including those generated by the consumption of its products by customers. The ruling, issued on Thursday, gives the company six months to formally assess and report on the environmental risks associated with the use of its fuels and natural gas, extending beyond emissions from its own plants.
The court's decision, however, stopped short of holding TotalEnergies directly liable for its customers' actions or ordering significant reductions in its oil and gas production. Claimants, including the City of Paris and environmental NGOs like France Nature Environnement, Notre Affaire à Tous, and Sherpa, had sought orders for TotalEnergies to halt new oil and gas projects and reduce production by specific percentages by 2030.
This ruling marks the first concrete application of France's 2017 duty of vigilance law, which mandates very large companies to take responsibility for the impacts of their entire production chain. Previously, TotalEnergies primarily focused on reducing emissions from its direct operations (Scope 1 and 2), which constitute a smaller portion of an oil group's overall carbon footprint compared to Scope 3 emissions, accounting for about 90%.
By requiring the company to consider Scope 3 emissions in its climate risk analysis, the court has signaled that TotalEnergies can no longer limit its environmental responsibility to direct emissions alone. This increased transparency could lead to greater scrutiny of the company's climate strategy and potentially more legal action if its vigilance plan is deemed insufficient.