Our Business Principles and Rules of Behavior
TotalFinaElf endeavors to contribute to the efficient and properly managed utilization of all sources of energy and products that it provides through its activities.
The Group takes into account the needs of today's consumers and the interests of future generations through an assertive policy of continuous improvement and environmental protection that forms part of its strategy of sustainable development. These principles underpin the Group's drive to pursue growth for the benefit of its shareholders, customers and employees, while at the same time contributing to the economic and social development of its host countries. In its operations, TotalFinaElf adheres to the principles of the 1948 Universal Declaration of Human Rights and to the guidelines of the International Labor Organization.
Excellence in both individual conduct and collective action is a value that was shared by
the three companies that have merged to form TotalFinaElf: Total, PetroFina and Elf
Aquitaine. All three had a similar approach to their industrial responsibilities and
comparable achievements, yet each company had particular expertise in certain areas.
The best of these practices have been blended into unified business principles and
rules of conduct for the new TotalFinaElf Group, leading to publication in 2000 of the
TotalFinaElf Code of Conduct and the Group's Health, Safety, Environment and Quality
Charter.
The TotalFinaElf Ethics Committee was established at the same
time, along with a Task Force Sustainable Development that reports directly
to the Group's Executive Committee.
The Code of Conduct
This document, distributed to all employees, states the guiding values and principles
governing the acts of all Group members concerning:
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Shareholders
TotalFinaElf strives to earn the confidence of its shareholders with the objective
of providing them with a profitable investment. The Group regularly provides to all
share-holders full and transparent information and is attentive to their concerns,
notably through the Shareholders' Committee.TotalFinaElf complies strictly with
applicable stock exchange regulations and reports its activities accurately its
financial statements.
Customers
TotalFinaElf provides its customers with quality services and products, and strives
at all times to offer them the best performance for their specific requirements at
competitive prices.
The Group is attentive to its customers' needs; it continuously monitors,
tests and improves its products, services, technology and manufacturing procedures
so as to maintain quality, safety and innovation at every stage of the development,
production and distribution process.
Employees
TotalFinaElf has confidence in the loyalty, motivation, professional competence and
sense of responsibility of its employees. The Group expects that they adhere to the
highest standards of integrity and that they avoid all conflicts of interest.
The Group pays particular attention to working conditions, notably regarding the
respect of the individual, the absence of discrimination, and the protection of health
and safety.The Group associates its employees with the Group's development,
in particular by encouraging the dissemination of information, dialogue and
consultation, and respects the private lives of its employees.
The Group recruits its personnel solely on the basis of its requirements and the
partic-ular qualities of individual candidates.The Group ensures the development
of its employees' professional skills and their careers without discrimination,
in particular on the basis of race, gender, membership of any political, religious
or union organization or any minority group. Career development is facilitated by
appropriate training.
Suppliers
TotalFinaElf is careful to respect each party's interests with clear, even-handed
contract terms.
The Group expects its suppliers to adhere to a code of conduct equivalent to its own.
Industry partners
TotalFinaElf applies its Business Principles and Rules of Behavior whenever it acts
with partners as the managing partner or operator.
When this is not the case, the Group requires that the managing partner or
operator apply principles that are compatible with its Business Principles
and Rules of Behavior.
Host Countries
TotalFinaElf, in carrying on its businesses, respects the natural environment and
the cultural values of all the countries in which it is present.
The Group contributes through its activities to the social and economic development
of these countries, particularly in the areas in which its activities are carried
out, and ab-stains from all intervention in the political process of host
countries.
The Group complies with all applicable laws and regulations, notably concerning
the natural environment, competition and employment.
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The members of the Ethics Committee, which was set up on March 12, 2001 and is chaired by Jean-Pierre Cordier, are Hélène Baletaud, Jean-Pierre Goullin, Peter Herbel and Thierry Lemonnier.
SCOPE
The Ethics Committee:
• Makes recommendations to the Chairman and the Executive Committee;
• Works proactively;
• Ensures dissemination of the Code of Conduct;
• Participates in the management of relations with outside organizations on ethical issues;
• Can be consulted directly by all Group members on questions concerning ethics.
PROCEDURES
The Committee :
• Is informed by the Group's divisions prior to any investment that may raise questions of ethics;
• Is kept informed of major projects by the Group's Management Committee and the management committees of the Group's different branches;
• Investigates all matters of an ethical nature submitted by employees;
• Is at liberty to visit any Group subsidiary or site;
• Reports directly to the Chairman.
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The Ethics Committee |
A commitment to sustainable development
Sustainable development is now widely taken to mean an approach that integrates and balances economic, social and economic responsibilities, local needs and global resources, and earnings and short-term/long-term expenses. Stated more simply, it means improving the quality of life of existing and future generations, with active concern for the future of our planet. The Group's commitment to sustainable development reflects above all a state of mind. It is an integral part of our corporate culture: to strive for growth while remaining attentive to the needs of society at large and adopting a far-sighted strategy.
This commitment will guide the Group in managing the risks and opportunities related to its operations and in developing new business activities, in order to create value for its shareholders and all other stakeholders.
Our activities and the local community
TotalFinaElf strives for harmonious integration of its ongoing and new activities into its host communities. Genuine dialogue with all parties concerned is an essential element of this endeavor. Particular attention is devoted to the transportation of our products, whether by sea, river, rail, road, or pipeline. The Group also contributes to initiatives destined to further health, education and professional skills, with full respect of cultural differences. In addition, the Group seeks to foster the development of small local enterprises by helping them to open their activities to international markets.
Leveraging oil and gas resources
In cooperation with industry partners, the Group constantly seeks to improve techniques and technologies used for discovering and extracting of oil and gas resources in order to transmit sufficient reserves to future generations. It also develops marginal fields and gas fields that are far from markets. In addition, TotalFinaElf is in the forefront in developing deep offshore resources and heavy oil reserves, notably in Venezuela.
New energy resources
The Group develops new energy resources in areas where it can best apply its technical and marketing expertise. In Europe, the Group is the leader in biofuel marketing. Wind power projects are in progress or under study, primarily for our industrial and offshore installations where conditions lend themselves to this source of power. In developing countries, Total Energie is a world leader for the installation of solar-power systems. TotalFinaElf also participates in programs to develop and demonstrate new fuel cell applications.
Product design requirements
The development of the Group's new prod-ucts starts with analysis of their life cycle, from manufacturing to use by customers, in order to determine the best strategic, technical and commercial choices.
This approach is particularly elaborate for chemical products used in the home or in automobiles, for example, as well as for bitumen, lubricants, motor fuels and heating fuels. Energy and raw materials management, as well as recycling of used materials, are integral parts of the design and implementation of manufacturing processes.
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Waste management and emission control
The Group's policy prescribes systematic identification and control of waste produced. Greenhouse gas management and water treatment are areas where TotalFinaElf has undertaken numerous initiatives. The future of industrial sites at the end of their useful life is integrated in the Group's long-term strategy and planning, backed by experience acquired in this area over the past 15 years.
The paths to sustainable development
HSEQ: four letters that spell a permanent commitment
In 2000, the TotalFinaElf introduced a Health, Safety, Environment and Quality Charter adapted to the new dimensions of its activities. Prior to the publication of its first environmental report for the year(1), the Group committed itself on the follow-ing major environmental issues.
Tanker safety
TotalFinaElf has undertaken to contribute to continuous improvements in shipping safety through a number of significant measures:
• The Group has decided not to charter any vessel over 80,000 tons that is more than 20 years old, or any vessel under 80,000 tons that is more than 25 years old. TotalFinaElf was the first oil company to make this decision.
• Stricter internal procedures will be applied for inspecting chartered vessels.
The Group has signed the Oil Shipping Safety Charter drawn up by the French Transportation Ministry. This charter advocates stricter control and greater transparency for marine surveyors, more frequent dry-dock inspections for older vessels, stronger port inspections, and increased liability of all parties involved.
Combating the greenhouse effect
The Group is committed to contributing to global abatement of greenhouse gas emissions, both by reducing such emissions in its operations and by offering products with optimized performance in this respect. TotalFinaElf adheres to the principle of Kyoto on climate change and will continue the necessary efforts to achieve voluntary emission reduction targets.
All our sectors are actively working toward objectives for improvement, taking into account technological possibilities and the market context. In our upstream operations, as has been the case for many years, we aim to avoid flaring by recycling gas or reinjecting it into the reservoir when this option is technically feasible. Downstream, the improved energy efficiency of our refining processes has stabilized our energy consumption. This has been accomplished despite the sharp increase in our refined volumes and ever greater demands for environmentally-friendly products. In our Chemicals segment, we are continuing to reduce emissions of gaseous compounds that contribute significantly to the greenhouse effect. Consequences in terms of global warming are also carefully taken into account when we develop new products. In addition, the Group is participating in initiatives aiming to establish emissions trading systems, one of the flexible mechanisms being developed.
Maintaining biodiversity
Throughout the past years, maintaining biodiversity has already given rise to numerous Group initiatives. Our efforts have mainly been focused on marine bio-diversity, with studies on mangroves, coral reefs and the dugong (a marine mammal found notably in the Persian Gulf), as well as protecting the pinna nobilis, a mollusk indigenous to the Mediterranean Sea.
These programs are closely linked to our operating activities, particularly in the exploration and production sector, where they are valuable for preparing environmental impact maps for the areas where we work, for tracing seismic lines or pipeline routes, and for facilitating future site restoration.
(1) The 2000 Environmental Report can be obtained from Corporate Communications.
Human resources management: the key to the future
With 123,300 employees in 120 countries, TotalFinaElf has made human resources management a key component of its strategy to maintain the rapid pace of growth of its business activities and to improve
its profitability. The objective is to provide all employees with opportunities to develop their individual careers within the Group, while meeting the short and medium-term human resources needs of each unit.
The Group pays particular attention to the respect of cultural values and ethics. It encourages the mix of professional cultures specific to each of its various activities and promotes shared corporate values, including the principles that underpin all management initiatives. Special emphasis is placed on internationalization of positions of responsibility, regionalization of expertise and individualized training. Seventy of TotalFinaElf's 400 senior management positions are held by non-French Group employees. In the Exploration & Production sector, 350 non-French nationals are currently working outside their home country, and this number is steadily increasing.
In 2000, the merger of Totalfina and Elf Aquitaine set a major professional challenge for the employees of both enterprises involving, in many cases, grouping teams at one location, as well as pooling best practices and introducing new organizational structures. The Group's employees once again demonstrated their ability to adapt and integrate. In all parts of the world, the strong spirit of cooperation and solidarity among the teams from both companies helped to make the merger of the new TotalFinaElf Group's entities both rapid and efficient.
In order to guarantee the Group's long-term growth and the development of direct or indirect employment levels, it is indispensable to adapt organizational structures to maintain or improve competi-tiveness. These changes must be anticipated and prepared with care. The Group is particularly attentive to developments
in information technology, which is a key vector of transformations in markets and organizations. The cross-functional intranet networks set up for each business already facilitate multi-disciplinary teamwork and the exchange of experience among special-ists and experts, wherever they may be located and whatever their home unit. Supported by appropriate training, this technology enhances the efficiency of Group employees around the world. At the same time, the Internet offers new business opportunities that can be expected to transform the relations between the Group and its customers, suppliers and partners. This new technology requires new expertise, internal procedures, and decision-making methods and organizations. TotalFinaElf plans to accelerate the development of e-business in its different sectors, notably purchasing, trading, sales and marketing.
A variety of Internet projects are under study or in progress at TotalFinaElf. Some are designed for a specific business, sector or product, while others are Group-wide in scope. All, however, make the Group more competitive.
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REMEDIATING THE ERIKA SHIPWRECK
The Mission Littoral Atlantique
The Mission Littoral Atlantique (Atlantic Coast Task Force) was set up by TotalFinaElf after the sinking of the Erika tanker. Its first responsibilities were to take charge of carrying out the three major commitments that had been assumed by the Group: pumping out the fuel oil from the wreck, active participation under the Polmar Plan in cleaning up the Atlantic coast line affected by the oil spill, and storage of the waste collected onshore.
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The work of this task force is currently continuing with final clean-up operations along the coast and treatment of the waste.
The Mission Littoral Atlantique was initially endowed with a budget of FRF 850 million, wholly funded by the Group. During 2000, the budget was raised to FRF 1 billion for the year:
Participation in coastal clean-up operations: FRF 220 million.
Waste treatment: FRF 200 million.
Pumping of the cargo: FRF 500 million.
Restoring ecological balances: FRF 50 million.
Rehabilitating the image of the Atlantic coast communities: FRF 30 million.
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The Group will make no claim for reimbursement from the International Oil Pollution Compensation Funds (IOPC Funds): the full amount available will be paid as compensation to individuals and business affected by the oil spill. The Mission Littoral Atlantique will remain active until the commitments undertaken have been carried out in full.
Pumping the Erika's cargo: a commitment's successful conclusion
Resources committed by TotalFinaElf to pumping the Erika's remaining cargo included seven vessels, three of which with dynamic positioning, up to 300 workers and a FRF 500-million budget.
In July 2000, after four weeks of operations, main pumping of the Erika wreckage had enabled recovery of 90% of the cargo lying at a depth of 120 meters. An additional five weeks were then necessary to recover the remaining 10%, which was divided between the two sections of the wrecked tanker, through the use of finish-pumping techniques. The total amount of fuel oil pumped out was 11,245 metric tons.
A combination of very careful preparation, innovative pumping techniques mixing the fuel oil with a plant-based solvent, and massive mobilization enabled these operations to be completed without an accident nearly four weeks ahead of schedule, before the start of poor weather.
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