French oil and gas giant Total has rebranded to TotalEnergies as the company moves to incorporate sustainable energy in its product portfolio including generating and supplying renewable energy. The name change was approved at the Ordinary and Extraordinary Shareholders’ Meeting last week. The shares of Total were up around 0.25% in London after the announcement.
“Energy is life. We all need it and it’s a source of progress. So today, to contribute to the sustainable development of the planet facing the climate challenge, we are moving forward, together, towards new energies. Energy is reinventing itself, and this energy journey is ours. Our ambition is to be a world-class player in the energy transition. That is why Total is transforming and becoming TotalEnergies,” declared Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies.
The International Energy Agency earlier this month warned that energy groups must stop all new oil and gas projects this year if the world is to reach net-zero carbon emissions by 2050.
TotalEnergies ambitions for Net-Zero
As the world’s fourth-largest privately-owned oil and gas producer, TotalEnergies is aiming to reach carbon neutrality by 2050, in part by investing in more solar and wind power projects. The carbon neutrality strategy was backed by 91.88% of shareholders voting at its annual meeting.
The energy company will derive revenues from electricity production, and reduce its reliance on oil products, including with staggered targets to 2030, and mirroring moves by rivals to try to cut emissions.
This year the French energy company plans to devote more than 20 percent of its investment budget to renewable energy sources as well as electricity.
The company has committed to a 60% reduction in the average carbon intensity of energy products used worldwide by Total customers by 2050. In the meantime, it is targeting a 15% reduction by 2030 and 35% by 2040.
The race towards Net-Zero is gaining momentum, the fossil fuel industry is facing pressure over its role in fuelling global warming and inducing climate change. Total is looking to reinvent itself and move away from fossil fuels to adapt to the changing energy landscape that’s dominated by renewables.
In 2018, Norway’s Statoil rebranded to Equinor in a similar bid to reflect its aim to diversify away from fossil fuels.