Paris – In 2015, Total reinforced its response to address the short-term challenges resulting from the fall in oil prices that began in June 2014.
1. Creation of the Gas, Renewables & Power Segment
The new Gas, Renewables & Power segment will spearhead Total’s ambitions in the electricity value chain by expanding in downstream gas, renewable energies and energy efficiency. This segment, whose President will be a member of the Executive Committee, will bring together the existing Gas and New Energies divisions (excluding biotechnologies) with a new Innovation & Energy Efficiency Division. This division’s responsibilities will include Total Energy Ventures, a corporate venture capital fund, and the Awango access to energy business. A new Biofuels division will be created within the Refining & Chemicals segment to develop all bioenergy-related activities.
“We intend to implement a proactive strategy in gas markets to meet demand and identify new outlets for our production. The Group will also produce and sell power from renewable sources. Electricity will be the energy of the 21st century and the growth of gas and renewables is driving us to fully capture margins across the entire electricity value chain. We have several goals in this area over the next 20 years: to be one of the top three solar power players, to expand in electricity trading and energy storage, to become a leader in biofuels, especially biojet fuel, while also exploiting potential development opportunities in other renewable energies. Our ambition is to create a new business that will help make Total the responsible energy major,” said Patrick Pouyanné, Chairman and CEO of Total.
2. Creation of a new Total Global Services segment
This new segment is being created to sustainably improve efficiency across all businesses by globally pooling support services (Accounting, Purchasing, Information Systems, Training, Human Resources Administration and Facilities Management).
“Pooling certain support functions will sustainably improve our efficiency, create value and reduce costs. Our experience over the last three years in the area of IT infrastructure has shown that such a strategy can deliver efficiency gains for Total, while also motivating the personnel involved. The entities making up Total Global Services will operate as service companies for internal clients across business segments and at the corporate level. This sweeping change in the way we work will put cross-functionality at the core of our organization. This is what our One Total ambition is all about,” commented Patrick Pouyanné.
3. Corporate headquarters refocused on strategic functions; human resources and corporate social responsibility, which lie at the heart of Total’s ambition
Corporate headquarters will therefore be refocused on three strategic functions. In addition to the current finance organization, which groups the Finance, Insurance and Information Systems divisions, two new divisions will be created:
- People & Social Responsibility
This division will consist of Human Resources; Health, Safety & Environment, which will combine HSE departments across the different segments to establish a strong, unified environmental and safety model; the Security Division; and a new Civil Society Engagement Division, which will manage all of Total’s initiatives in this area. The Senior Vice President, People & Social Responsibility, will be a member of the Executive Committee.
- Strategy & Innovation
Strategy & Innovation will be made up of the new Strategy & Climate Division, responsible for ensuring that Total’s strategy incorporates the 2° C global warming scenario; Public Affairs; Audit; Research & Development, which will replace the current Scientific Development Department and carry out Total’s R&D programs such as on CO2; the Chief Digital Officer; and the Senior Vice President Technology.
“The new organization will enable us to build an even more productive and efficient Total, a Group that also listens to, and welcomes dialogue with, its customers and stakeholders. Thanks to its teams, Total is a leading energy player today, and will remain so in the future. Our people are the architects of our success, which is why human resources and social engagement are cornerstones of this project and will be represented on the Executive Committee,” concluded Patrick Pouyanné.
The changes will not result in layoffs or mandatory relocations. Total is committed to conducting this project in close collaboration with employee representatives and unions, with the intention that it will be supported by all.
The aim is to deploy the new Gas, Renewables & Power segment and the revamped corporate organization on September 1, 2016 and Total Global Services on January 1, 2017.
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