Sharing Our Energies - nioclibrary.ir Corporate Social... · M. Davalan • M. Dufour • T. Gonzalez • D. Klein • M. Labelle • P. Latron • S. Mahuzier ... Total • Graphics:

SharingOur Energies

Corporate Social Responsibility Report 2005

To learn moreThe CSR Report can be downloaded at www.total.com, whose CorporateSocial Responsibility section provides additional information.

The following documents can also bedownloaded from our Web site:

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005

ContactsTo let us know what you think of the report and the issues covered in it, go to Contact at www.total.com.

CoordinatorsJean du Rusquec, Special Advisor to the ChairmanSylvie Arlabosse, Diversity and Accountability

Editorial TeamEditorial Consultant: Doussot Conseil

Business Principles; Health; Social Responsibility and Local Development

Sylvie Arlabosse, Diversity and [email protected] Chambéry, Diversity and [email protected]

Environment; The Future of Energy

Françoise de L’homme, Sustainable Development and [email protected]

Safety

Laure Sauvage, Industrial [email protected]

We would also like to thank everyone at Total who contributed to the report.

Photo Credits

M. Davalan • M. Dufour • T. Gonzalez • D. Klein • M. Labelle • P. Latron • S. Mahuzier• E. Miller • ORC/Getty Images • M. Pallardy • V. Rackelboom • O. Robinet • M. Roussel • G. Uferas • F. Von Der Fecht • L. Zylberman • K. Alsvik • All rightsreserved: Total • Graphics: Michel Berget.TOTAL S.A. – May 2006 – Design and production: English Version: ICC

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CORPORATE SOCIAL RESPONSIBILITY REPORT 2005CONTENTS

ContentsINTRODUCTIONForeword by Thierry Desmarest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 02Corporate Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 04Activities and Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 06Our Commitments, Accomplishments and Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08

BUSINESS PRINCIPLESGuidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Upholding and Promoting Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 . . . . . . . . . . . . . . . . PRINCIPLES 1, 2, 4 and 5Responsibility and Integrity in the Conduct of Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 . . . . . . . . . . . . . . . . . . . . . . . . . . PRINCIPLE 10

ENVIRONMENT, SAFETY, HEALTHEnvironment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 . . . . . . . . . . . . . . . . . . PRINCIPLES 7, 8 and 9Deploying Our Environmental Management System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Combating Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Environmental Stewardship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Maintaining Biodiversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Managing Technological Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Improving Workplace Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Enhancing the Safety of Hazardous Materials Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44Prevention Processes to Protect Health in the Workplace . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Health and Environmental Impact of Products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46Supporting Individual and Community Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

SOCIAL RESPONSIBILITY AND LOCAL DEVELOPMENTSocial Responsibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 . . . . . . . . . . . . . . . . PRINCIPLES 3, 4, 5 and 6Pointers: Human Resources Management in 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Promoting Employee Dialogue and Fairness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53Encouraging Equal Opportunity and Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Supporting Employees Affected by Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Local Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 . . . . . . . . . . . . . . . . . . . PRINCIPLES 1 and 2Contributing to Sustainable Development in Non-OECD Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Dialogue and Support in OECD Countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

THE FUTURE OF ENERGYFossil Fuels Still Needed for the Foreseeable Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 . . . . . . . . . . . . . . . . . . PRINCIPLES 7, 8 and 9Replacing Our Oil and Gas Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Contributing to the Development of Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70Consolidating Our Coal Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Renewable Energies, the Next Generation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 . . . . . . . . . . . . . . . . . . PRINCIPLES 7, 8 and 9Biomass, a Flexible Strategy Tailored to Local Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Photovoltaic Solar Energy, an Industrial Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Investing in Wind and Water Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Toward New Energy Vectors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 . . . . . . . . . . . . . . . . . . PRINCIPLES 7, 8 and 9Alternative Liquid Hydrocarbons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Hydrogen Fuel Cells . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Enhancing Energy Efficiency, a Promising Avenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 . . . . . . . . . . . . . . . . . PRINCIPLES 7, 8 and 9

APPENDIXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77Key Indicators, Notes on the Statistics Used in This Report,

Assurance Report on Certain Environmental and Social Performance Indicators, GRI/IPIECA Index

Global CompactPrinciples

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005FOREWORD

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Foreword by Thierry DesmarestChairman and Chief Executive Officer

Total reported a record profit of €12 billion in 2005.What’s your response to critics?

Our earnings reflect not just soaring oil prices, but also thehard work of our teams across all three core businesses.They reward our expertise, the diversity of our internationaloperations, and our investment strategy. Our size and solidfinancial base are strengths that enable us to competesuccessfully in an industry dominated by national oilcompanies in the leading producing countries. Thesestrengths underpin our strategic independence and our long-term viability.

Where do the profits go? To enrich shareholders? Orelse to investment projects or employees?

Our priority every year is to develop profitable new projectsthat will allow us to continue to grow production across our businesses. Our capital expenditure rose last year to $13.9 billion from $8 billion in 2002, and we plan to keep itthat high for the foreseeable future.

Dividends and share buybacks gave shareholders a return ontheir investment of around 6% in 2005, in line with marketexpectations. That’s our way of rewarding their loyalty andthanking them for their confidence in Total.

Our employees benefit, too—80,000 of them own shares,accounting for close to 3.75% of the shareholder base at theend of first-quarter 2006. And our compensation and benefitspolicy gives all our employees a stake in our outstandingfinancial performance.

What about the people in your host countries? Do theybenefit from higher oil and gas prices?

That’s an especially important question for us, since two-thirds of our oil and gas production now comes from non-OECD countries. Our presence has to generate tangible localbenefits. We make sure that we contribute to the localeconomy through jobs, purchases of goods and services,training, and technology transfers.

In addition, our operations generate significant revenue forhost countries, and the way it is spent is a major concern forthem. Our upstream business will pay close to €11 billion intaxes for 2005. That’s why we support accurate informationon payments. The Extractive Industries Transparency Initiative(EITI), which we back, is starting to pay off, and we’recurrently helping several countries to prepare for thepublication of their oil revenues. As well, our Code ofConduct condemns bribery and corruption, and we makesure that we practice what we preach.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005FOREWORD

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With the support of associations and in agreement with localauthorities, we’re deploying a wide array of initiatives tobenefit the communities near our facilities. We spent €90 million on outreach initiatives in 2005, of which €73 million in non-OECD countries, covering education,health, support for agriculture, support for startups, and otherareas. Recent initiatives include an agreement signed in 2005with Institut Pasteur to promote the prevention, diagnosis andtreatment of infectious diseases in a variety of countries.

Oil and gas supply has had a hard time keeping up withdemand in the last two years. Should we be gettingready for the post-oil era? What’s Total doing?

Shifting the global energy balance will take time. Oil and gaswill continue to meet at least 60% of demand for decades tocome. But if demand continues to grow at this pace, globalproduction will peak sooner, not later, for geological reasons.By reining in world consumption, in particular by enhancingenergy efficiency, and focusing oil on transportation andpetrochemical applications, we’ll gain time to develop thealternative energies we’ll eventually need. While payingattention to managing our own energy consumption, we arealso investing and innovating to develop non-conventionalresources, such as deepwater reserves and extra-heavycrude oil. In addition, gas—particularly liquefied natural gas—will account for an increasing share of our production.

How is Total helping to diversify energy supply anddevelop renewable energies?

Today, Total is a European leader in biofuels. We are also wellestablished in solar energy, as well as in wind power, wherewe were recently selected to build a 90 MW wind farmproject in southern France. To help secure the future, a five-year, €500-million program was approved in 2005, coveringrenewable energies and new energy technologies such asfuel cells and processes to produce automotive fuel fromsyngas and biomass.

Securing the future of energy will require more diversifiedsources of energy, as well as advances in processes. We’ll becontributing our capacity to develop new technical solutionson an industrial scale.

You mentioned that oil and gas will continue to play akey role. But don’t their greenhouse gas emissionsconstitute a serious threat to the climate?

Balancing the use of oil and gas with protecting the climate isa critical challenge that requires a planet-wide response. Inlate 2005, the United Nations Climate Change Conference inMontreal showed some tentative signs of convergence,although for the time being the only countries taking adisciplined approach to applying the Kyoto Protocol are theEuropean Union member states.

We continued our work on managing emissions last year,focusing on enhancing the energy efficiency of our processesand, upstream, eliminating flaring of gas from our productionoperations. We are actively working on capturing and storingcarbon dioxide and are taking part in a number ofcooperative programs in this area, including an industrial pilotrecently launched at the Lacq site in France.

There are risks associated with petroleum product andchemical production, storage and transportation. Tellus about Total’s industrial safety policy.

Our approach combines accurate analysis of technologicalrisks and a safety culture that we want to be an automaticreflex. The safety of people, the integrity of our installationsand the management of our logistics operations are criticalfactors in our industrial performance. We’ve made a lot ofprogress in the last five years, but there’s still a lot to bedone. We aim to be among the best in class.

Should multinationals make a more direct commitmentto human rights?

Although governments bear the primary responsibility forupholding human rights, companies can set an example thatpromotes human rights and encourages their respect. Incountries where human rights are under threat, we have to beparticularly vigilant. That’s why we keep communicationchannels open with civil society and local communities.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005CORPORATE PROFILE

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Corporate ProfileWith operations in more than 130 countries and nearly 113,000 employees, Total is France’s largest company, the world’s fourth-ranked oil and gas operator and a world-class chemical concern.

Through innovation and action, we help to meet humankind’s long-term energy needs.

Workforce: 10,963Adjusted net income from business segments: €0.7 billionGross capital expenditure: €1.7 billionOil and gas production: 41 kboe/dRefining capacity: 182 kb/dNumber of service stations: 262

North America (9)

Sales: €143 billionAdjusted net operating income from business segments: €11.9 billion2004 gross capital expenditure: €11.2 billionWorkforce: 112,877Oil and gas production 2,489 kboe/d (1)

Liquids: 1,621 kb/dGas: 4,780 MCF/d (2)

Proved oil and gas reserves: 11,106 Mboe (3)

Liquids: 6,592 MbGas: 24,750 BCF (4)

Refining capacity (5): 2,700 kb/d (6)

Number of service stations: 16,976 (7)

Chemicals sales: €22.3 billion (46% Base Chemicals, 29% Specialties, 25% Arkema)

Key Indicators in 2005

Workforce: 5.774Adjusted net income from business segments: €0.9 billionGross capital expenditure: €0.3 billionOil and gas production: 247 kboe/d

South America

(1) Thousands of barrels of oil equivalent per day(2) Millions of cubic feet per day(3) Millions of barrels of oil equivalent(4) Billion cubic feet(5) Including Total’s equity share of Cepsa refining, at end-2005(6) Thousands of barrels per day(7) Including 100% Cepsa network, at end-2005(8) Including Russia and CIS(9) Including Caribbean

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005CORPORATE PROFILE

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To learn more, visit www.total.com.

Workforce: 78,304Adjusted net income from business segments: €5.7 billionGross capital expenditure: €5.1 billionOil and gas production: 779 kboe/dRefining capacity: 2,344 kb/dNumber of service stations: 12,073

Europe (8)

Workforce: 8,777Adjusted net income from business segments: €1.1 billionGross capital expenditure: €0.7 billionOil and gas production: 248 kboe/dRefining capacity: 48 kb/dNumber of service stations: 440

Asia

Workforce: 1,122Adjusted net income from business segments: €0.7 billionGross capital expenditure: €0.6 billionOil and gas production: 398 kboe/dNumber of service stations: 696

Middle East

Workforce: 7,937Adjusted net income from business segments: €2.8 billionGross capital expenditure: €2.8 billionOil and gas production: 776 kboe/dRefining capacity: 134 kb/dNumber of service stations: 3,505

Africa

Production

Offshore platform

140 main producing oil and gas fields

Interests in 6 gas liquefaction plants

Wind power

Solar energy

Exploration

Our Challenges

Activities and Challenges

Industrial and FinancialContinue to grow our production profitably

Step up development of LNG and heavy oil, our fastest-growing segments

Adjust to the new world energy environment, where oil and gas prices are high and new competitors are emerging, and to changing demand

Our role is to meet energy demand in our markets worldwide.The diagram opposite presents our activities and the main related challenges, which are discussed in the report.

For a more detailed presentation of our activities, see Total in 2005, available at www.total.com.

2005 Key Indicators 2005 Key Indicators

Exploration & Production

UpstreamGas & Power

Oil and gas production: 2.5 million barrels of oil equivalent per day (Mboe/d)

No. 1 multinational oil company in Africa, No. 2 in the Middle East

Proved and probable reserves with a reserve life of close to 22 years

A top-three global LNG operator

7.7 million metric tons (Mt) of LNG marketed

Pursue steady growth in our output to meet demand

Extend reserve life through technological advances

Combine growth and profitability to ensure the long-term viability of our businesses

Enhance acceptance of our projects by expanding local content and partnerships with communities and by promoting the transparency of financial flows with host countries (EITI)

Develop associated gas to eliminate flaring

Double our LNG production by 2010

Diversify into other energy sources, including photovoltaic solar energy, wind power and coal

Facilitate access to energy for isolated populations through rural electrification programs

Main Challenges Main Challenges

The Future of Energy

Invest and innovate to meet constantly growing oil and gas demand

Enhance the energy efficiency of our processes

Help to diversify energy sources

Improve our customers’ energy use

Social and CommunityUphold and promote basic human rights wherever we operate

Ensure the safety of our employees and neighbors

Deploy a human resources policy whose cornerstones are fairness, diversity and employee dialogue

Respect neighboring communities and contribute to their development

EnvironmentCombat climate change by reducing greenhouse gas emissions and devising new solutions, such as CO2 capture and sequestration

Reduce the impact of our production and transportation operations on the air, water and soil

Reduce the noise, visual and olfactory disamenities caused by our operations

Maintain biodiversity

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005ACTIVITIES AND CHALLENGES

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Carrier

Automotive fuel depot

Chemicals and Specialties

Petrochemical complex

Tank truck

9 trading offices

27 refineries Around 17,000 service stations

More than 300 production plants

Downstream Chemicals

No.1 refiner-marketer in Europe and Africa

2.7 million barrels per day (Mb/d) of refining capacity at December 31, 2005

A European leader in biofuels, with more than 700,000 metric tons blended in fuel sold by Total in Europe

A leading global operator

Volumes marketed: 4.5 million barrels per day (Mb/d)

More than 3,000 charters for an aggregate volume of 130 million metric tons

One of the largest integrated producers in the world, with revenue of €22.3 billion

Base chemicals (petrochemicals and fertilizers):Total Petrochemicals, the world’s fifth-ranked chemical producer

Specialties: • Hutchinson: No. 1 in the world in elastomer processing • No. 2 in resins (Cray Valley/Sartomer), adhesives (Bostik) and electroplating (Atotech)

Arkema: • Vinyl products, industrial chemicals and performance products • A world leader in most of its markets

Adjust our refineries to changes in demand

Develop the fuels of the future, such as biofuels

Enhance energy efficiency in our plants

Manage the health, safety and environmental impact of our products throughout their life cycle

Enhance the safety of petroleum product transportation by road

Stringently vet tankers to ensure safe transportation

Ensure the safety of crews and protect the marine environment

Adjust the fleet to the diversification of shipping routes to meet new flows

Realign our chemical portfolio, a process that includes the Arkema spin-off

Achieve critical mass in fast-growing markets, such as China

Improve our products in response to customer needs, while managing their health and environmental impact throughout their life cycle

2005 Key Indicators 2005 Key Indicators

Refining & Marketing Trading & Shipping

2005 Key Indicators

Main Challenges Main Challenges Main Challenges

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005ACTIVITIES AND CHALLENGES

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CORPORATE SOCIAL RESPONSIBILITY REPORT 2005OUR COMMITMENTS, ACCOMPLISHMENTS AND OBJECTIVES

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Health

Have all employees embrace our ethics principles and practices

Priorities Commitments Accomplishments at End-2005 Next Steps

Protect health atwork

Integrate publichealth issuesaffecting employeesinto our healthprocesses

• Prevent health risks in the workplace andaround industrial units

• Minimize the impact of pandemics suchas HIV/AIDS and malaria on ouremployees and their families

• Occupational Health and HygieneGuidelines deployed at pilot sites

• Medical organizations used by ouremployees and their families audited in 34countries

• Second global report on occupationalillnesses at our sites

• Infectious diseases: Corporate fundingagreement signed with Institut Pasteur

• HIV/AIDS: Programs extended tosubsidiaries and neighboring communitiesin Asia

• Avian flu: Contingency plans prepared fora potential pandemic

• Deploy the Occupational Health andHygiene Guidelines at 50% of siteswithin three years

• Malaria: prepare a methodological guideand field participation in studies onresistance to treatment

• Deploy actions in the field to support theagreement with Institut Pasteur

• Pursue prevention programs (obesity,cardiovascular disease, sexuallytransmitted infections, addictions, etc.)


Ethics

Strengthen theenvironmentalmanagementsystem

Reduce ourgreenhouse gasemissions

Protect air quality

Protect waterquality

Maintainbiodiversity

• Obtain ISO 14001 certification of 50% ofour environmentally sensitive sites by end-2005 and 75% by end-2007

• Reduce greenhouse gas emissions (2005targets in relation to 1990):

- Exploration & Production: 30% per unitproduced

- Refining & Marketing: 20% per unit refined - Chemicals: 45% in absolute value - Gas & Power: Less than 375 kilograms of

CO2/MWh

• Reduce refinery SO2 emissions by 20% in 2010 from 2004 for theworldwide operated scope

• Reduce Exploration & Production’shydrocarbon releases: < 40 ppm per subsidiary in 2005 < 30 ppm per subsidiary in 2007

• Identify and curb the impact of ouroperations on biodiversity

• 110 environmentally sensitive sitescertified (58%), 2005 target met

• Reduction targets reached or exceeded in2004 and confirmed in 2005:

- Exploration & Production: 41% per unitproduced

- Refining & Marketing: 20% per unit refined - Chemicals: 48% in absolute value - Gas & Power: 344 kilograms of CO2/MWh

• Anticipated reduction of over 10% in 2005

• 2005 target exceeded on average for thebusiness: 29 ppm

• Sharing of the Group-wide biodiversitypolicy and preparation of amethodological guide

• Pursue the certification program

• Identify and quantify further reductionopportunities in 2010

• 2010 action plan to reduce Refining'semissions

• Continue to deploy the action plan ineach Exploration & Production subsidiary

• Deployment of the methodological guideat pilot sites


• Educate employees about ethical issuesand their operational implications

• Promote the transparency of oil revenues

• Respect the rules of free competition

• Code of Conduct published in 12 languages• 35 units have undergone ethical

assessment since 2002• Self-assessment procedures tested in 4

units• Dedicated ethics intranet site launched

• Participation in the work of the EITI, dialoguewith host countries and support for thoseembarking on the process

• Initiatives to educate sales and marketingteams about the rules of free competition

• Distribution of Group reference documents(Contract and Purchasing Codes)

• Code of Conduct available in 16 languages• Ethical reassessments: 7 planned in 2006• 6 subsidiaries to undergo ethical

assessment in 2006• Expand the sharing of best practices

identified during assessments

• Continue to encourage and support financial transparency

• Continue dedicated training sessions

Environment

Our Commitments,Accomplishments and Objectives

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005OUR COMMITMENTS, ACCOMPLISHMENTS AND OBJECTIVES

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Enhance ouroccupational safetyperformance

Strengthen thesafety of our facilities

Enhancetransportation safetyand promote roadsafety

• Reduce the total recordable injury rate (TRIR)for our own and contractor employees

• Continuously improve our management oftechnological risks through action plansbased on analyses of the risks inherent inour industrial operations

• Reduce the number of road accidents andstrengthen control of logistics operations, inparticular loading and offloading

• 2005 total recordable injury rate (TRIR) forGroup and contractor employees in line withthe target: 6.3 incidents per million hoursworked, for a total decline of 59% since2001 and 15% since 2004

• 2006-2009 targets set• Publication of Group Safety Guideline:

Isolation of Energy Sources and HazardousSubstances before Work

• Publication of the application guide forGroup Safety Guideline: Technological Risk Analysis

• Appraisal of the effectiveness of safetymanagement systems at all operated sitespresenting technological risks: 68%compete at end-2005, compared with 58%at end-2004

• Signature of an agreement with France’sEco Maires association on integratingindustrial facilities in urban areas andpreparation of an in-house guide for unitheads

• Driving safety: Worldwide network of drivingcorrespondents created

• Publication of Group Safety Guideline:Pipeline Surveillance, following the surveyconducted in 2004

• Deployment of carrier safety managementsystems expanded in Europe

• Membership in the Global Road SafetyPartnership

• 2006 target TRIR of 5.6 incidents per million hours worked, for a decline of 10% from 2005

• Introduction of employee safety perceptionindicators

• Deploy safety behavior initiatives in thebusinesses

• Cascade and strengthen the Grouptechnological risk analysis method across all businesses

• Continue dialogue with neighbors andprepare technological risk prevention plansin France – Monitor trial sites under thepartnership agreement with the Eco Mairesassociation

• 2006 target for appraisal of safetymanagement systems at sites presentingtechnological risks: 78% (100% in 2009)

• Strengthen transportation risk reporting and analyses

• Continue to deploy and assess carrier safety management systems


Broaden diversity

Develop employeeskills

Promote feedbackand dialogue


Human Resources

Safety

Community Involvement

• Manage the local socioeconomic impactof our projects and operations

• Systematically conduct environmentaland social impact assessments

• Strengthen the resources of small andmedium-sized businesses near ourfacilities

• Recommendations to expand localcontent in our operations andinvestments

• Local Community Guide deploymentmethod launched: SRM+ (StakeholderRelationship Management+)

• 280 small and medium-sized businesseshelped in France

• Similar programs launched or continuedin non-OECD countries (Congo,Madagascar, South Africa, Angola)

• Continue to expand local content andmake our process more professional

• Map stakeholders at our main sites, prior to organizing community dialogue

• Extend support for small and medium-sized businesses to new countries

• Implement intrapreneur programs • Revitalize regions affected by the

restructuring of our chemical operations


Promote localsocioeconomicdevelopment

Enhance theprofessionalism ofour communityrelations process

Contribute to thelong-termdevelopment of ourhost regions

• Combat discrimination • Increase the number of non-French and

women managers, make hiring moreinternational and recruit more women

• Strengthen training and make it moreinternational

• Develop employee dialogue

• Europe-wide agreement on equalopportunity signed

• Indicators defined and 2006 and 2010targets for management diversity set

• Total Corporate University launched• Weeklong seminar at MIT on energy

issues• Young manager integration programs

deployed worldwide

• Memorandum of understanding on theuse of new information andcommunication technologies by unions

• European Works Council representativesre-elected

• Create a Europe-wide scorecard • Working group on pay equality for

men and women • Prepare work/life balance indicators• Negotiate a disabled employee

agreement in France

• First session of the Total Summer School

• Develop diversity management trainingcourses

• Corporate governance program forsubsidiary managers

• Europe-wide negotiation onintrapreneurship and support foremployee-owned businesses

• Set up a European Works CouncilSustainable Development, CorporateSocial Responsibility and SafetyCommittee

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005BUSINESS PRINCIPLES

The nature of Total’s activities and our size require us to deal with a wide array of political, social,economic, financial and environmental issues. To help us, we have adopted business principles that allow us to assess our performance, continuouslyimprove, and report to and foster dialogue with stakeholders. Our relations with employees, businesspartners and host communities are based on respect for the law, support for universal principles,especially human rights, and ethical business practices.


Business Principles


10

Guidelines Shared across the organization, our business principles respect and uphold laws and universal principles. We are careful to monitor compliance and to report on both performance and problems to our stakeholders, with whom we maintain regular dialogue to forge and nurture a relationship of trust and confidence.

Principles and PracticesBased on Universal RulesOf the many standards that govern our actions across ourbusinesses, the Code of Conduct is the main referencedocument for our employees. It defines the framework for ourprocess and is adapted where appropriate to the country,type of operation and business.

The Code of Conduct explicitly states our support for suchmajor international documents as the Universal Declaration ofHuman Rights, fundamental conventions of the InternationalLabour Organization (ILO), the OECD (1) Guidelines forMultinational Enterprises, and the United Nations GlobalCompact.

The Code of Conduct is supplemented by a set of rulestailored to the specific needs of each of our businesses.Guidelines are provided for all areas of corporate socialresponsibility (CSR), including ethics, safety, the environment,health, social responsibility and local development. The tablebelow lists our primary references and the specificassessment and reporting systems that have been introducedto monitor the effective implementation of our internal rules ineach area, in addition to the more general monitoringprovided by auditing and internal control procedures.

Area

Ethics/Business Conduct

Safety

Environment

Health

Social Responsibility

Local Development

Reference Documents

Code of Conduct and Ethics CharterSecurity PolicyPurchasing Codes Competition Guides

Health Safety Environment Quality CharterGroup Safety Guidelines

Health Safety Environment Quality CharterBiodiversity policy

Health Safety Environment Quality CharterOccupational Health and Hygiene Guidelines

European Employee Relations Forum

Local Community Guide

Implementation, Assessment and Reporting Tools

Ethical assessments and self-assessments Procedure for referring cases to the Ethics Committee

Safety management systems (SMS) audited in line withinternational standards, such as the International SafetyRating System (ISRS)Internal safety audits

ISO 14001 certification of environmentally sensitive sitesEnvironmental reportingVerification of environmental data by two auditing firms (2)

Internal environmental audits

Occupational illness reporting

Global Workforce Analysis and Worldwide HumanResources SurveyVerification of employee data by two auditing firms (2)

Community action reporting

CSR Reference Documents and Monitoring at Total

(1) Organization for Economic Cooperation and Development.(2) The indicators verified are indicated by in this report.


11

(1) Detailed information on our relations with individual shareholders can be found in theShareholder Notebook section of Total in 2005.

A Commitment to StakeholderDialogue and Reporting For Total, learning what our diverse stakeholders expect andfostering dialogue with them about our challenges andactivities enhance mutual understanding and driveimprovement.

Well-Established Employee andShareholder Relations

Our long-standing dialogue with shareholders and employeestakes a variety of forms.

Dialogue and the employee satisfaction survey are the twoprimary resources for listening to the concerns of ouremployees. In 2005, dialogue was strengthened withemployee representatives regarding CSR issues. ASustainable Development, Corporate Responsibility andSafety Committee was created as part of the EuropeanWorks Council to review the CSR Report and discuss itscontent (see page 53).

Close relations are maintained with individual shareholders,notably through the regular publication of the Shareholders’Newsletter and dedicated events that foster interaction anddiscussion, such as the Annual Shareholders’ Meeting, tradeshows and the Shareholders’ Club. In addition, in May 2003the Club introduced seminars on understanding financialstatements (1).

We also maintain close, ongoing relations with institutionalshareholders, in particular through twice-annual roadshowswith the participation of senior management and a largenumber of meetings held throughout the year.

Attention to Our Other Stakeholders

Total is aware of the need to expand and improve dialoguewith all of our external stakeholders, including neighboringcommunities, NGOs, and local authorities and institutions. In 2005, to get to know them better, a trial was conducted to map stakeholders around our main industrial facilities. The process, known as SRM+, will be extended across ourorganization (see page 63).

In the same vein, at end-2005 we conducted a survey similarto the one in 2003 to assess public perception of Total andour CSR policy. Respondents were well-known figures suchas NGO members and academics with a special interest insocial responsibility issues. Performed by a consultant using aqualitative interview process, the survey was carefullyreviewed by management. Its principal findings were that thepublic recognizes Total’s efforts, especially our clear

commitments and goals, our support for major referencedocuments and our willingness to listen when it comes tosensitive issues such as Myanmar and Sudan. However, thereis continued criticism on subjects that include our presence inMyanmar, a formal community involvement policy andtransparency.

Publishing a Report More Consistent withthe Expectations of Civil Society

The CSR Report is meant to facilitate dialogue withstakeholders. To move closer to that goal, we solicited theinput of a number of NGOs, asking them to tell us exactlywhat they would like to see the report cover for 2005.

Their questions focused in particular on our position regardingoil revenue transparency and its furtherance, human rights,business ethics, local development and the treatment ofcontractors working at our facilities. They would also like usto spell out our approach to the future of energy and ourrenewable energy goals.

They also asked about our provisions for whistleblowers,rules governing the use of security forces, our presence inMyanmar and relevant indicators for monitoring ourcommunity involvement.

In addition, we received a detailed questionnaire on thelaunch of our gas liquefaction project in Yemen.Our 2005 CSR Report attempts to address all these issues.

Active Involvement in Public Debate

As a responsible corporate citizen with specialized expertise andan obligation to explain the realities and constraints of ourbusinesses, Total has a stake in certain public debates beingconducted in France, Europe and worldwide.

Our main duty is to provide the competent authorities with thetechnical information they need to make decisions affecting what wedo. We also believe we have a responsibility to take part in nationaland international public debate on such key issues as climatechange and the role of companies in upholding human rights.

Total communicates with political leaders either directly or throughorganizations of which we are a member, such as internationalindustry associations, business associations and organizationsthat specialize in social responsibility. We work with their nationalcounterpart associations worldwide.

We focus solely on public issues directly related to our operations,such as changing legal standards and the provisions of publicaction plans that impact us. It is not our role to intervene in theconduct or, especially, financing of politics in host countries.

Principal Public Debates in Which Total Takes a Position


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Issue

Human Rights

Financial Transparency

Climate Change

Future of Energy

Health

Safety

Topic

Universal guidelines and norms on human rights and transnationalcorporations

Presence in countries that do notuphold human rights

Transparent management of oilrevenues

Kyoto Protocol

Biofuels

Secure energy supply

Energy efficiency

REACH regulation to regulatechemicals

Maritime facility and transportationsafety

Public position taken by Total

Total supports the establishment of universal guidelines and isparticipating actively in the process conducted by the SpecialRepresentative of the United Nations Secretary-General on humanrights and transnational corporations and other business enterprises.

Total promotes human rights within our sphere of operations and iscareful to ensure that our presence benefits the local community.We respect the decisions made by the competent internationalorganizations, but do not believe that boycotts and embargospromote human rights.

Total actively supports the Extractive Industries TransparencyInitiative. We participate in the programs initiated by the countriescommitted to the EITI and provide assistance to countriesinterested in doing the same.

Total supports implementation of the Protocol, which must not,however, undermine the industrial competitiveness of signatorycountries.

Total supports the development of biofuels, which must meetcustomer quality and performance requirements and comply withEuropean Union regulations concerning competition and the freemovement of goods.

Public financial support for the production of biofuels must bebased on cost-effectiveness analyses and be standardized acrossthe European Union.

Second-generation biofuels require sustained research anddevelopment programs.

Total believes that all available sources of energy will have to beutilized to secure future energy supply and that oil should bereserved for applications where substitutes are hardest to find,namely transportation and petrochemicals.

Policies to promote energy efficiency, a vital component inreducing energy consumption, must cover all segments, especiallythe residential and commercial segments, where significantimprovements can be made. They must combine regulations,incentives and market mechanisms that do not distort competitionamong the various types of energy.

In the wake of the agreement concerning REACH in the EuropeanCouncil in December 2005, Total would like to see futureenforcement actions make allowance for the production and usagerequirements of the chemicals subject to authorization.

Total supports the European Commission’s “Third Package oflegislative measures on maritime safety in the European Union” toimprove government monitoring of ports, extend the obligation toinsure ships and create an auditing system for classificationsocieties.

Total believes that improving maritime transportation safetyrequires holding shipowners and their insurers more accountablefor accidents. We therefore regret the failure of the negotiationsconducted by the International Maritime Organization.

Al Hudaydah

AdenGulf of Aden

Red Sea

PIPELINE325 km Al Mukalla

MARIB BLOCK 18

Sanaa

BALHAFY

em

en


13

Yemen LNG at a Glance (1)

Scheduled for commissioning in late 2008, the YLNG plantwill produce liquefied gas for export by LNG carrier. Locatedin the port of Balhaf on Yemen’s southern coast, the two-train (2) facility will have a total capacity of 6.7 million metrictons a year. It will be supplied with gas piped 325 kilometersfrom the Block 18 fields in the Marib region, about 180kilometers east of the capital, Sanaa.

Yemen LNG, CSR Principles in ActionIn late August 2005, the Yemeni government approved the development plan for Yemen LNG (YLNG), a large-scaleliquefied natural gas project led by Total. The way in which the project has been developed shows how the impact on the community, the environment and thelocal economy have been taken into account from the outset, in line with our principles and standards.

Skills Transfer and Local Jobs

The YNLG project is expected to create several thousandlocal jobs during the three-year construction phase andaround 500 during its 25-year lifetime. It will therefore help todrive local economic development, in particular through theYemenization of teams. Eventually, 90% of positions will beheld by Yemeni nationals.

To meet this target, YLNG has launched a major regional andnational recruitment drive. Yemenization is also covered byspecific clauses in agreements with contractors andsuppliers. Training and skills transfer programs support theprocess.

The Yemenis recruited by YLNG will hold operational,administrative, support and management positions. YLNG willhire expatriates only when it cannot find the skills required inYemen. Over a five to ten-year period, expatriates willgradually be replaced by Yemenis, especially in the seniormanagement team.

Comprehensive, Up-to-Date ImpactAssessments

Extremely detailed impact assessments were conducted priorto selecting the sites for the YLNG facilities. They are criticalto managing the environmental and social issues raised bymajor projects.

The location of the liquefaction plant and the gas pipeline routewere approved by the Yemeni government based on an initialenvironmental and social impact assessment performed in 1997.

Balhaf was selected over eight other sites as the bestlocation for the liquefaction plant because of thecharacteristics of its coastline. The water depth andprotection against tides at the construction site eliminate theneed to drain the land and build a protective dike.

Yemen LNG Shareholders● Total ● Yemen Gas Company ● Hunt Oil Company

● SK Company ● Kogas ● Hyundai Corporation ● GASSP

9.60%

6.00%

5.90%5.00%

16.70%

39.60%

17.20%

(1) For more information on YLNG and to read the environmental and social impactassessment, go to www.yemenlng.com.

(2) Installations for converting raw natural gas into liquefied gas by cooling it to atemperature of around -160°C.


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The option of using the existing pipeline route from Shabwato Rudhum was examined, but would have required enlargingthe security zone. In contrast, a direct line between the gasfield and the coast is shorter and does not run throughinhabited areas. The route selected therefore minimizes thepipeline’s impact on the local population.

A study was carried out in 2001 to learn more about local Yemenisociety and collect more detailed archeological data. It uncoveredseveral sites along the pipeline route that call for historicalpreservation, most of them dating from the Bronze Age.

Because the Yemen LNG project was suspended between2002 and 2004 in response to global developments in thenatural gas market, the assessments had to be made current.Begun in March 2005 and conducted in accordance withWorld Bank criteria, a complete impact assessment updatedand added to previous reports, notably by covering in moredetail issues related to maintaining marine biodiversity. It waspublished in February 2006 (1).

Safety, A Top Priority

As with any industrial project, safety is a core concern. Inkeeping with Total practices, instilling a culture of safetyamong YLNG personnel and contractors is a priority at allstages in the process. As technical leader for the project,Total will ensure that partners, contractors and supplierscomply with our Health Safety Environment Quality Charter.

Attention to Impact on NeighboringCommunities

The plant site is owned by the government and there are nopermanent residents. As a result, construction should notrequire expropriation. In contrast, the security zone createdaround the plant site encroaches on local fishing grounds.YLNG has therefore asked MacAlister Elliott & Partners Ltd(MEP), a consulting firm that is very familiar with traditionalfishing in Yemen, to conduct a socioeconomic and technicalstudy to help it find a fair and equitable solution to theproblem.

Although the pipeline route was designed to minimize overlapwith populated and agricultural areas, around four hectares offarmland along its 325-kilometer length will have to beexpropriated. A special committee set up by national andregional authorities will manage compensation. YLNG will berepresented on the committee and will ensure that ownersare compensated in accordance with World Bank standards.

To foster ongoing dialogue with stakeholders for the durationof operations and facilitate the plant’s integration into the localenvironment, YLNG has created a Sustainable Developmentteam. This group has already sought input from all levels ofthe community, including area residents, regional governmentrepresentatives, the ministries involved and certain

international players, such as NGOs and embassies. Theteam is working with specialized organizations on severaltopics: besides having MEP look into the fishery issue, it hassolicited the help of the French Red Cross and Yemeni RedCrescent to identify drinking water needs along the pipelineroute and in the Balhaf region.

Environmental Monitoring and Protection

Environmental assessments have highlighted the diversity of coral and fish in the area of operations. We have drawn up site maps and construction plans to limit our impact on local marine life and currents. Cooling water is dischargedfar enough out at sea to avoid significant impact on water temperature.

In broader terms, the impact on biodiversity will be verylimited during operation of the facility. However, constructionmay affect a small portion of the coral reefs. Independentobservers will monitor the situation during and afterconstruction.

YLNG will do more than simply limit the impact of itsactivities. It also wants to actively help to protect the Yemenienvironment, and has therefore contacted the nationalenvironmental protection authority about making a financialcontribution to the implementation of the Coastal ZoneManagement Plan (2).

A Plan for Refugees from Somalia

Each year from September to March, when weatherconditions are favorable, hundreds of Somalians cross the Gulf of Aden aboard makeshift boats. Most departfrom the northeastern port of Bossasso. Given YemenLNG’s location on Yemen’s southern coast, site managersare already cooperating with local authorities and, througha formal agreement, with UNHCR, the UN refugee agency,to process the refugees who arrive in the plant area.

YLNG has created an internal procedure to deal with thischallenging humanitarian situation, based on respect forhuman life and an obligation of assistance, in keeping withYemeni and international laws. Our policy calls forimmediately directing refugees who land in the site area tothe UNHCR’s Mayfah reception center, which is 70kilometers from Balhaf.

(1) See www.yemenlng.com/development.html.(2) Initiated by the World Bank, under the 1982 Jeddah Convention, ratified by the

Yemeni government in 1996.


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Upholding and Promoting Human RightsUpholding human rights is a core value of Total’s ethical principles and practices. Our presence in regions that are extremely diverse in terms of culture and human rights practices requires us to be particularly vigilant and fully committed.

Report on Our Ethics Principles andPractices at End-2005 Publicizing Our Principles and Practices

New edition of the Code of Conduct: Now available in 12languages, it will be published in 16 languages by end-2006.

Launch of a dedicated intranet site: The ethics sitedescribes our process, provides access to internationalreference documents and internal codes and guidelines, and outlines the issues and Total’s position with respect to theareas dealt with by the Ethics Committee, including humanrights, bribery and corruption.

Sharing of best practices: A database of best practicesidentified during ethical assessments will be added to theintranet site in early 2006.

Ethics Education and Awareness

Ethics seminars: Additional sessions of the Business andEthics seminar, which deals with local implementation of theCode of Conduct, and the creation of a new internationalseminar, Our Ethical, Environmental and SocialResponsibilities: Managing Our Local Integration. Half a dozen sessions are scheduled in 2006.

Discussion of our ethics principles and practices in agrowing number of seminars and courses about Total ingeneral or specific to businesses or host regions. Twentypresentations were made in 2005.

Assessing Practices

Continued ethical assessments by GoodCorporation (1): 35 since 2002, including ten in 2005.

2005 results of ethical assessments: An average of 60% good or excellent practices; 24% evidence pointsneeding improvement, 16% deficient or inadequate processes.

Launch of reassessments: Evaluation of the progress madesince the first assessment in seven subsidiaries in 2006.

A self-assessment resource tested at four pilot sites,confirming the value of the process. Self-assessment of another two or three sites in 2006.

Whistleblowing

35 cases reviewed in 2005.

Cooperating with the UN onthe Role of EnterprisesTotal’s support for the Universal Declaration of Human Rightsand the United Nations’ Global Compact reflects acommitment to respect and promote those agreements’principles in our production and business activities. In keeping with that commitment, we are participating activelyin the process conducted by the Special Representative of the United Nations Secretary-General to develop principlescovering the human rights role of transnational corporationsand other business enterprises.

The success of this project to spell out in more detail howprivate enterprise worldwide can promote human rights wouldconstructively strengthen national legislation and establish morestandardized rules in all countries.

An Attentive Presence inSensitive CountriesTotal strives to implement our ethical principles in allcountries, including the most sensitive, where we are astransparent as possible about what we do and pay especiallyclose attention to the safety of the people we employ.

Preparing Our Return to Sudan

In December 2004, the 1980 production sharing agreementwas updated to reflect new international industry standardsand to spell out the terms and conditions for resuming ouroperations in Sudan. The peace accord signed in January2005 and the creation of a national union government inSeptember have helped to restore a degree of politicalstability that may enable Total to resume operations in thecountry. With that eventuality in mind, and to improve ourknowledge of the situation on the ground, we are workingwith the NGO European Coalition on Oil in Sudan (ECOS) andthe independent observer The Collaborative for DevelopmentAction. The CDA completed a field mission in Sudan in 2005.The comments and suggestions in its report, which isavailable on its Web site (www.cdainc.com), will help us to laythe foundations for successfully integrating our operations.

(1) Total has been working with U.K.-based GoodCorporation since 2002 to assess theimplementation of our Code of Conduct. Its assessments identify the strengths andweaknesses of each of our operational units, which are rated on the basis of 84evidence points derived from our Code of Conduct.


16

To ensure the application of ethical principles in this sensitivecountry, ethics guidelines have been introduced and all of ourcontracts will include clauses referencing these guidelines.

In addition, a permanent representative was appointed inFebruary 2005 to conduct ongoing dialogue with the localauthorities and communities.

The base camp and off-sites should be renovated in 2006.Once the mine removal programs overseen by the Sudanesegovernment and Mining Action Center have been completed,the seismic survey can begin.

To integrate our operations as seamlessly as possible into thelocal economy, we will recruit as much of our workforce aswe can from neighboring communities. We will emphasizesecurity and compliance with the Voluntary Principles onSecurity and Human Rights (VPSHR) by providing training for the personnel we hire to guard the camp and to ensurethe security of transportation (1).

Commitment and Vigilance in Myanmar

Total shares the concerns of the international communityabout the human rights situation in Myanmar. That’s why weare strict about implementing our ethics process, which aimsto ensure personal safety and improved living conditions forthe people living in our operating area (2). However, we do notsee how the departure of major companies from Myanmar, assought by organizations such as Burma Campaign UK, wouldimprove the situation.

The lawsuit brought by Myanmar refugees against Total inBelgium under the country’s Universal Jurisdiction Act,alleging use of forced labor, was dismissed by the Court ofCassation appeals court. After obtaining permission from theCrown Prosecutor, we recently examined the relevantdocumentation, which showed that none of the four plaintiffshad been a victim of, or witness to, incidents that could beattributed to the Group.

In France, Total and French association Sherpa, whichrepresents eight Myanmar nationals who had filed a lawsuit in2002 alleging “unlawful confinement,” reached an agreementthat brought proceedings in the Nanterre Court to a close.Under the agreement, Total will compensate the plaintiffs forpurely humanitarian reasons. We continue to categoricallyrefute that we have ever used or condoned forced labor. Thesolution is similar to the one deployed in the past when casesof forced labor in the region were reported, even though wehad been unaware that they had occurred.

The agreement also provides for the creation of a €5.2-millionsolidarity fund mainly, to finance humanitarian programs fordisplaced Myanmar refugees in Thailand through the UN HighCommissioner for Refugees (UNHCR) and the Catholic Officefor Emergency Relief and Refugees (COERR), a regionalNGO. It will also be used to compensate anyone who claimsto have been conscripted for forced labor.

(1) For updated information on Total’s presence in Sudan, see www.total.com.(2) For more information, see http://burma.total.com.

• Since 1995, Total has deployed a broad-ranging socioeconomic program in theYadana gas pipeline corridor, in line with the principle of supporting economicand social development in our host countries, and in particular our hostcommunities. Microcredit is a key driver in the program, contributing to thecreation of local livestock production.


17

Protecting People and Facilities

The security of employees, including contractors, and theirfamilies and the protection of our installations are absolutepriorities at all Total sites worldwide, particularly in sensitiveand unstable countries. Moreover, we are very alert topotential terrorist threats (see page 43).

The Group Security Policy (1) outlines our principles in this area:

• Support for universal human rights principles, especially therecommendations of the Voluntary Principles on Securityand Human Rights (VPSHR).

• Management of security based on risk prevention, planningfor potential crisis situations, training and dialogue.

A Few Examples of Sensitive Security SituationsEncountered in 2005

The situation in Nigeria remained tense, requiring both Totaland other oil companies operating in the country to remainextremely vigilant. Installations, especially pipelines, areregular targets of vandalism, relations with local people areoften strained, and employee dialogue can be difficult.

In 2005, the situation was challenging, but we were prepared.In addition to implementing a security system designed toprotect employees and installations, our Nigerian subsidiary isworking with local communities to create conditionsconducive to genuine dialogue.

In response to the political instability in Haiti, Total asked forthe support of the United Nations Stabilization Mission in Haiti(MINUSTHA) to secure the delivery routes of tank trucks andprotect their drivers. Its help allowed us to make the localdeliveries of petroleum products that are vital to the country’seconomy and to supplying basic services, while minimizingrisks.

In Côte d’Ivoire, where the political situation remains highlyunstable, our security managers monitored the situationcontinuously. In contrast to 2004, when we were forced toevacuate personnel, we were able to keep our refinery anddistribution operations going and to protect employees,despite a number of tense episodes.

(1) The Group Security Policy can be consulted at www.total.com.

Voluntary Principles on Security and Human Rights(VPSHR)

After an operational guide was distributed in 2004, VPSHRtraining was developed to help the most exposed facilities toimplement the voluntary principles. The new course for localsecurity, community relations, communication and humanresources managers takes a very practical approach to theproblems encountered and provides tools and solutions fordealing with certain complex situations. The half-dozen sessionsscheduled in sensitive countries in 2006 will be supplementedby a session in Paris for managers from smaller Totalsubsidiaries.

We also want to extend VPSHR practices to our serviceproviders. Our security managers and legal departments havedone a great deal of work to incorporate them into our servicecontracts, especially for new projects and contract renewals.Their efforts will continue in 2006.

• Obagi gas field in Nigeria.


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Responsibility and Integrity in the Conduct of Business The nature of Total’s activities makes it incumbent upon us to be transparent about our allocation of financial flows andvigilant concerning the ethics of how we do business. It is especially important that we comply strictly with the law andreject all forms of bribery and corruption.

How Total’s Income IsEmployedWith revenue of €143.2 billion in 2005, adjusted net incomeof €12 billion and capital expenditure of €11.2 billion, Total is currently France’s leading company, has the biggestmarket capitalization in the euro zone and is one of the mostprofitable oil majors.

As a responsible enterprise, we employ our profits to driveour growth and maximize benefits for our main stakeholders.

• Between 2003 and 2005, our net income grew €4.7 billionand our capital expenditure by €3.5 billion. Total accountsfor 2% of the world’s oil and gas production, butunderwrites 5% of global investments in exploration andproduction.

• Our 112,877 employees share in our profits through acompensation policy that rewards both individual and groupperformance (see page 54).

• Total currently has approximately 520,000 individualshareholders and 80,000 employees shareholders, whoheld nearly 3.75% of our share capital at March 31, 2006and benefited from our assertive dividend policy.Shareholder dividends and share buybacks totaled €6.9billion in 2005 (1).

• Total provides work for a large number of suppliers,including both major oil service industry companies andsmall and medium-sized businesses located near ourfacilities. In 2005, we worked with nearly 100,000 suppliers.

• Total paid nearly €16 billion in income and production taxes for 2005 to the governments of host countries. This revenue helps to drive their economic development.Our presence has other beneficial ripple effects for localresidents, including job creation, the purchase of local goods and services, and community initiatives (see page 61).

For a more detailed report on our financial performance, see our registration document at www.total.com.

(1) Including dividends paid to minority shareholders.

• Total accounts for 2% of the world’s oil and gas production, but underwrites 5% of global investments in exploration and production.In 2005, we brought on stream the first five wells of an additionalplatform in the Ekofisk field (this photo) in Norway, a successfulillustration of our assertive contribution to continued development of North Sea oil and gas reserves.

19


Complying with the Rules ofFree Competition The Code of Conduct reaffirms our obligation andcommitment to uphold the rules of free competition. That’swhy we encourage our businesses to adopt procedures thatwill ensure that operating units comply with competition lawsand regulations.

Practical guides are distributed in each of our businesses toincrease employee familiarity with competition laws andregulations by spelling out and reinforcing the principle statedin the Code of Conduct. We also take steps to raiseawareness about these laws and regulations that are tailoredto the businesses and the situation of employees, focusingon employees with the greatest exposure.

Because some Total companies have been the subject ofantitrust investigations in the past, employee training andawareness initiatives have been stepped up in all businesses,especially R&M and Chemicals, which are the mostexposed (1).

Supplier Relations andPurchasing Policy Our concern for ethical business practices extends to ourpurchasing and contracting processes. Our policy calls forbuyers, suppliers and contractors to comply with our ethical,community and environmental commitments.

The main risks and issues to which we pay close attention are:• Purchases and supplier relations in countries in which the risk

of bribery and corruption is high.• Misuse of our power, especially when we are working with

small companies.• Monitoring of the supply chain, especially for products sold in

service stations and Chemicals purchases.

We have prepared a number of reference documents anddeployed resources designed to integrate our CSRrequirements into purchasing processes. The businesses havecrafted specific purchasing codes of conduct for theirsegments, supported by detailed guidelines and requirementsestablishing the rules for each step. Self-assessment toolsdeployed in the subsidiaries and operational units ofbusinesses ensure compliance with principles and procedures.These systems foster awareness of ethical issues amongemployees involved in purchasing processes.

To make sure that our suppliers and partners comply with ourCSR requirements, we have raised the bar for selection in ourtenders and stressed the distribution of the Code of Conduct.We will continue to work toward increased partner compliancein 2006. We also plan to make more systematic reference tothe Code of Conduct in our contracts.

Contractual Relations with Host Countries

Our exploration and production activities are conductedunder agreements and contracts with host countries. The signatories are usually the national oil company, which represents the government, and foreign oilcompanies, which are its partners in carrying out theproject. The agreements spell out the obligations of thepartners, including exploration work, possible carrying by the foreign partner of the national company’s share of costs, the timetable for production startup in the eventof a commercial discovery, local recruitment and training. The contracts stipulate how the production will be sharedbetween the host country and its partners and establishhow profits will be taxed.

Because oil and natural gas projects require very long-term, substantial financial commitments, oil companies need stable legal and tax environments that do not change every time the local politicalenvironment changes.

Oil companies are sometimes criticized for theirunwillingness to revise older contracts, which wereentered into when oil and gas prices were lower, oil technology less advanced or the local political situationdifferent. Total’s position is as follows:

• We pay close attention to the stability of ourinvestments’ legal framework, which reflects industry-wide standards.

• Our operations, especially in Africa, are usually carriedout under production sharing agreements that generallyinclude adjustment mechanisms that guarantee the hostgovernment an increasing share of production onceoutput exceeds a certain level and when prices rise.

(1) For more information about antitrust investigations, see the Legal Risks section of the Registration Document.

Unconditional Rejection ofBribery and Corruption An Assertive Policy

Our Code of Conduct is very clear: “Total rejects bribery andcorruption in all forms, whether public or private, active orpassive.”

Like all multinational oil and chemical companies, Total isexposed to the risk of corruption, which is heightened by weak governance in certain countries, the substantialamounts invested and intense competition to win newprojects. We are also aware of the risk of corruptionassociated with day-to-day business transactions, which,although involving smaller sums, undermines the ethicalconduct of business affairs. We therefore strive to guardagainst all bribery and corruption, on any level and in any form.

We take part in international discussions and initiatives tocombat bribery and corruption. For instance, we are involvedin the Global Compact Working Group on the Tenth Principle,which deals with joint efforts and concrete measures bycompanies to fight corruption.

Our anti-corruption policy is an integral part of our ethicsprocess and is implemented using the tools and resourcescreated to monitor compliance with our Code of Conduct(see page 15).

Prevention and Auditing

The Code of Conduct is our baseline reference. It isdistributed Group-wide and cascaded into professionaldiscipline codes, especially Purchasing codes.

Ethics seminars incorporate role-play exercises in whichparticipants take a position, suggest solutions and explaintheir choices.


20

Specific training is provided for employees who hold positionsof responsibility or are at risk of being exposed to corruption.

In addition, ethical assessments measure compliance with theCode of Conduct. There is a particular focus on corruption inthe sections concerning management, customers, suppliersand partners. In the event of shortcomings, an action plan isdeployed at the site or subsidiary being assessed, withsubsequent formal monitoring of its implementation (1).

Compliance with our principles is reinforced by internaloperating rules and procedures prepared by the legaldepartments. For instance, our Upstream business unitsinclude an anti-corruption clause in contracts withgovernments, public companies, service providers andsuppliers.

New Strides in 2006

In 2006, we will strengthen supplier selection by addingquestions to our tenders and inserting contract clauses thatmandate compliance with our standards. We will also stressawareness of potential conflicts of interest and will introducemore detailed anti-corruption policies and programs. A moresystematic emphasis will be placed on ethical risks inoperational management, and we will increase seniormanagement’s support and accountability with respect toethics issues.

(1) Total has been working with U.K.-based GoodCorporation since 2002 to assess theimplementation of our Code of Conduct. Its audits identify the strengths andweaknesses of each of our operational units, which are rated on the basis of 84evidence points derived from our Code of Conduct.

• Awareness and training are an integral part of ourpolicy against bribery and corruption.


21

Creating a Sustainable Company

The Chemicals business was restructured to focus on ahandful of segments linked mainly to petrochemicals andoffering direct synergies with refining.

The industrial rationale for spinning off Arkema is to create aworld-class chemical concern, even closer to its customersthan now and more responsive due to a shorter decision-making chain.

Total made a commitment to provide Arkema with a solidbalance sheet with low debt, including a net debt to equityratio of roughly 30%, at the time of the initial public offering(IPO). To achieve this, Total recapitalized Arkema andassumed certain liabilities.

Assuming Environmental Liabilities

A number of Total companies have assumed obligations toclean up and remediate decommissioned Arkema industrialsites, in France, Belgium and the United States.

Leaner Retirement and InsuranceObligations

Total has lightened Arkema’s retirement obligations toemployees.

In France, supplementary commitments for retirement plansclosed to participants in 1973 were outsourced to an insurerthat is taking over virtually all entitlements that had beenaccrued by beneficiaries as of December 31, 2004.

In the United States and the United Kingdom, Total hasassumed responsibility for obligations to Arkema’s retiredemployees and still active former employees. We also tookover obligations to provide insurance to retired employees in the United States.

The Arkema Spin-off: Total’s Commitments and Assumption ofObligationsCreated when the Chemicals business was restructured in 2004, Arkema has three core businesses: Vinyl Products,Industrial Chemicals and Performance Products. With the company poised to be spun off and listed in 2006, Total has madea number of commitments to Arkema.

Bonds to Cover Litigation for Violations ofCompetition Law

Several Total units have provided Arkema with bonds to cover fines and damages it might be ordered to payshould it be found liable for competition law violationscommitted prior to the IPO.

Spin-Off Timetable

• April 5, 2006: Arkema prospectus published following itsapproval by France’s securities regulator, Autorité desMarchés Financiers (AMF) (1)

• May 10, 2006: Elf Aquitaine Annual Shareholders’ Meeting

• May 12, 2006: Total Annual Shareholders’ Meeting

• May 18, 2006: Spin-off takes effect, Arkema is quoted on the Euronext™ Eurolist for the first time

Arkema Vital Statistics

Workforce at end-2005: 18,400 employeesRevenue at end-2005: €5.7 billionR&D: more than 3% of annual revenue

(1) The prospectus was registered with the AMF under the number 06-106. It is availablefree of charge from Arkema (4-8 cours Michelet, 92800 Puteaux, France) and Total(Investor Relations, 2 place de la Coupole, La Défense 6, 92400 Courbevoie, France).It can be downloaded at www.arkema.com, www.total.com or www.amf-france.org.Investors are encouraged to consider the risk factors detailed in Chapter 4 of theprospectus.The information provided here is neither an offer of sale nor a solicitation to purchaseArkema shares, especially in jurisdictions where the offer to sell such securities is notauthorized by law, since no security is being offered for sale as a result of the spin-offof Arkema’s activities.Arkema shares are not and will not be registered under the U.S. Securities Act of1933, as amended, and cannot be offered or sold in the United States without beingregistered, nor benefit from a registration exemption.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005ENVIRONMENT, SAFETY, HEALTH

The pursuit of our core business of producing, transporting and processing oil and gas into both products and energy requires us to remain constantly vigilant in our efforts to safeguard people and the environment. We do this by rigorously implementing environmental, health and safety policies across our organization.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005ENVIRONMENT, SAFETY, HEALTH

Environment,Safety,Health

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005ENVIRONMENT

22

EnvironmentAs a major supplier of energy products and chemicals, Total fullyassumes its environmental responsibilities. We help to combatclimate change through careful short and longer-termmanagement of our greenhouse gas emissions and by activelydeveloping innovative technological solutions, from energyoptimization and renewable energies to CO2 capture andsequestration. To enhance environmental protection, we arefocusing on reducing emissions and water use, managing spillrisks, rehabilitating brownfield sites, reducing and recyclingwaste, and developing waste-to-energy applications. We alsooffer cleaner, and in some cases biodegradable, products. In addition to actions sponsored through the CorporateFoundation, we are pursuing a large number of biodiversityinitiatives at our sites.

58% of our environmentally sensitive sites had obtained ISO 14001 certification at end-2005

Combating Climate ChangeTotal lends its full support to the international scientificprograms aimed at gaining a better understanding of climatechange. Since 1999, we have been an active partner in theJoint Science and Policy of Global Change program at theMassachusetts Institute of Technology in the United States,thereby contributing directly to a clearer understanding of thelong-term impact of human activities on the climate.

Participation in Emissions Trading Systems

In 2005, in application of the European Union EmissionsTrading Scheme (ETS) Directive, National Allocation Plansallocated the first CO2 emissions trading allowances to thecompanies concerned, who have to monitor, report and verifytheir emissions to participate in the trading scheme. Nationalallocation plans cover 55 of our industrial facilities, which arecurrently working to meet their obligations.

A CO2 Coordination Committee Taskedwith Optimizing Allowance Management at Group Level

As a participant operator in the trading market, we areworking with our counterparts to achieve an overall reductionin E.U. industry emissions, thereby helping the EuropeanUnion to meet its Kyoto Protocol targets.

Voluntarily Reducing Greenhouse GasEmissions Below the Targets Set in 2001


23

Deploying Our EnvironmentalManagement SystemWe continued to pursue ISO certification for our facilities in2005 (1), and at December 31, 236 sites had been certified.Certification covered 58% of our environmentally sensitivesites, well above the target of 50%, and our objective forend-2007 is 75%. At end-2005, 15 environmentally sensitiveExploration & Production sites had been certified, three timesthe previous year’s figure.

After a trial year in 2004, we launched an external audit of ourenvironmental reporting at 12 of 52 sites that accounted formore than 80% of our emissions. The statutory auditor’sprocedures provided a “moderate level of assurance” (2)

for the environmental indicators selected for this report (3). The expression “moderate level of assurance” means that thestatutory auditor had obtained sufficient and appropriateevidence to be satisfied with the quality of the informationobtained. The level of assurance (reasonable or moderate) is determined by the nature, timing and extent of the processto be applied to achieve the target commitment.

We also continued to deploy our internal Environment RiskAssessment method. After implementation in refineries in2003 and fuel depots in 2004, the method was extended to certain pipelines and to Specialties, Lubricants andSpecialty Fluid units in 2005.

(1) International standard for environmental management systems (EMS) that describeshow companies should manage and monitor their organization and procedures.

(2) See page 80.(3) Identified in this report by the symbol .

Number of ISO 14001 certified sites● ISO 14001 certification targets ● Real

75%

2007200520042003

58%50%

45%40%

Business 2005 targets 2005 real in relation to 1990 in relation to 1990

Exploration Down 30% Down 41%& Production per metric ton produced

Gas & Power Less than 344 kg CO2/MWh(equity share) 375 kg CO2/MWh

Refining Down 20% Down 20%per metric ton refined

Chemicals Down 45% Down 48%in absolute value

Our targets were reached or exceeded in 2004 andconsolidated in 2005.


24

However, despite decreases stemming from our withdrawalfrom a license in Angola, reduced flaring and lower activity inRefining, there was an increase in the absolute volume ofgreenhouse gases across the Group to 70.3 MTCDE as aresult of the commissioning of the cogeneration unit at theNormandy refinery in France and Arkema’s expandedfluorochemical activity in China.

In the medium and long term, we will use more energy as ouroperations grow and we produce automotive fuels withimproved energy and environmental performance. At present,the Refining business already accounts for nearly 45% of theprimary energy used by Total. To manage our greenhousegas emissions, we have in the short term undertakenprograms to optimize energy efficiency in refining andpetrochemicals, improve chemical process that emit nitrousoxide (N2O) and hydrofluorocarbons (HFCs), and reducemethane (CH4) and CO2 emissions caused by flaring. Someof the emissions reduction projects being examined could beencouraged by the Kyoto Protocol flexible mechanisms.Several proposals are being prepared. In line with thecommitments made under the Global Gas Flaring ReductionPublic-Private Partnership launched in 2001 by the WorldBank, Exploration & Production no longer allows continuousflaring in new projects and limits flaring as much as possibleat existing facilities.

As a result, the amounts of gas flared have been reduced bymore than 20% since 2001. To prepare for the longer-termfuture of energy, Total is working on research programs todevelop new equipment and industrial processes thatproduce fewer emissions and is exploring renewableenergies, such as wind, solar and biomass, and hydrogenfuel cells (1). We are also actively contributing to thedevelopment of new technologies, such as CO2 capture andsequestration. For instance, we began a trial in Lacq, France,in 2005.

Relative percentage of greenhouse gas sources in emissions across the Group in 2005

● Combustion ● Flaring ● Venting ● Processes

Greenhouse gas emissions (six gases)(MTCDE/year)

● Exploration & Production ● Gas & Power● Downstream ● Chemicals

Relative percentage of the six greenhouse gases in Total's emissions in 2005

● CO2 ● CH4 ● N2O● HFC ● PFC (0%) ● SF6 (0%)

Primary energy consumption*(million GJ/year)

● Exploration & Production ● Gas & Power● Downstream ● Chemicals

83%

3%5%

9%

49%

23%

1%

27%

200520042003 200520042003 2004

2004 2004 2004

20042003

24.5

23.624.4 24.124.0

21.4

16.4

2005

127.4122.2

2005

71.4

2004

66.0

2005

352.8355.7

2005

229.0230.6

2005

4.23.92.2

20052003

17.515.0

* Primary energy does not include exported electricity (14.9 TWh in 2005).

(1) See page 68.


25

Our Commitment to CO2 Capture and Geological SequestrationResearch and TrialsAccording to the special report of the Intergovernmental Panel on Climate Change (1) (IPCC) published in December 2005 andpresented at the Montreal Conference, CO2 capture and geological sequestration could account for 15 to 55% of thereduction in emissions needed to stabilize the climate, a critical addition to enhancing energy efficiency and using energiesthat do not emit greenhouse gases. More than one-third of global CO2 emissions are generated by concentrated sources,such as fossil fuel power plants, cement plants, refineries, and iron and steel plants. The objective is to concentrate andseparate CO2 from combustion fumes, then compress it and store it permanently in deep geological strata.

(1) The IPCC was set up in 1988 at the request of the G7 (United States, Japan, Germany, France, the United Kingdom, Canada, Italy) by the World Meteorological Organization and theUnited Nations Environment Program.

Fuel arrival

By pipeline

Unmined coal seams

Deep saline aquifers

Injection wellhead

By ship

By pipeline

Depleted oil or gas reservoir

Buffer storage

CO2 capture through precombustion

CO2 capture through postcombustion or oxycombustion

CAPTURE

CO

2

CO2

CO2

CO2

CO2

CO2

1

TRANSPORTATION2

SEQUESTRATION3

1. Capture

In addition to CO2, combustion fumes contain atmospheric nitrogen, which is not a greenhouse gas, and water vapor. Since sequestration capacity is finite, the CO2 has to be separated, which also reduces the amount of energy needed to compress and transport it. The three options are:

• Recovering the CO2 diluted in the combustion fumes (postcombustion).

• Separating the nitrogen from the air and using pure oxygen for combustion (oxycombustion).

• Removing the carbon before combustion using a chemical process (precombustion).

2. Transportation

The CO2 then has to be transported to the storage site:

• By pipeline, at a pressure of more than 74 bar (supercritical state).

• By ship, similar to those used for liquefied petroleum gas (LPG), in liquid form at moderate pressure and low temperature.

3. Sequestration

Carbon dioxide can be stored in:

• Deep saline aquifers, with a global capacity estimated at several trillion metric tons.

• Nearly depleted oil and gas fields, where CO2 flood can facilitate the recovery of additional oil and gas.

• Coal seams that cannot be mined, where injection can be supported by production of marketable methane.

CO2 Capture and Sequestration

Luc de Marliave

Climate Change Coordinator

Tell us about the CO2 capture and sequestration pilot atLacq and the technology used.

The pilot is designed to capture CO2 emissions from oneof the five boilers on the gas field site, which is expectedto reach the end of its production life in the next decade.The boiler, which currently produces steam, will have tobe adapted for the experiment. The process used will beoxycombustion (1), which facilitates CO2 capture byconcentrating carbon monoxide emissions in thegaseous effluent.

How many metric tons of CO2 can be captured andsequestered?

The pilot, which will produce around 40 metric tons perhour of steam for site utilities, will emit 200,000 metrictons of CO2 over two years, which will be captured andsequestered at lower cost than existing technologies.Demonstrating this technology on an industrial scalewith an existing boiler will be a world first.

What needs to be done first?

The pilot is scheduled to come on stream in 2008, aftertwo years of design and preparation. The projectrequires constructive dialogue with the supervisoryauthority, which will specify the applicable regulations,and with stakeholders.

Will the project demonstrate the sustainability of CO2geological sequestration?

The work will improve our proficiency in oxycombustionand help to assess the benefits of the Lacq site as a long-term sequestration facility for CO2.


26

Participation in a Number of R&D Programs

In 2005, we continued our work through a number of R&Dpartnerships and programs.

Financed by the Sixth Framework R&D Program of theEuropean Union, the CO2 ReMoVe consortium leverages theexperience of companies and research organizations toencourage CO2 geological sequestration applications inEurope and neighboring countries through a number of pilotprojects.

Led by Swedish power utility Vattenfall under the SixthFramework R&D Program, the ENCAP (ENhanced CAPture)project is developing CO2 capture solutions for coal, naturalgas and oil-fired power generation plants.

The aim of the PICOREF (Trapping of CO2 in Reservoirs inFrance) project is to demonstrate the industrial feasibility ofCO2 injection in France, in particular in oil and gas fields andsaline aquifers.

A Commitment to Industrial Demonstration Projects

In addition to injecting CO2 into the Sleipner aquifer, whereTotal has an interest alongside operator Statoil, since 1996,we are also a partner in an injection project in the North SeaSnøhvit field, operated by the Norwegian company. The CO2

will be separated onshore in an LNG plant, then pipedoffshore and injected via a subsea well into a saline aquifer ata depth of 2,600 meters, before being reinjected in theTubåen sandstone formation, which is 45 to 75 meters thick.

In the Weyburn oil field in Canada, a European R&D project,mainly funded by the European Union, is supporting the firstindustrial application combining CO2 capture and enhancedoil recovery. A total of 1.8 million metric tons of CO2

equivalent per year has been stored since 2000.

In Lacq, France, Total has begun a trial involving CO2 captureand sequestration in a gas field.

(1) See page 25.

In Exploration & Production, the increase in SO2 emissionsdue to operations at Lacq in France was partly offset byimproved performance at ABK in Abu Dhabi.

The more than 10% decline at refineries in 2005 results partlyfrom a 4% slowdown in their operations and to a large extentfrom work to identify and share best practices to improveprocesses at all sites. Our refineries have committed toreduce their SO2 emissions by 20% between 2004 and 2010.

Stabilized Nitrogen Oxide (NOx) Emissions

Factors that have led to a stabilization of nitrogen oxideemissions include improved calculation methods, changes inactivities and the gradual deployment of low-NOx burnerstandards for unit upgrades and all new projects, in particularin the Upstream.

SO2 emissions(thousands of metric tons per year)

● Upstream ● Refining ● Chemicals

NOx Emissions(thousands of MTCDE per year)

● Upstream ● Refining ● Chemicals

AdBlue, a urea solution to reduce NOxemissions from vehicles

Total began marketing AdBlue in 2005. Carried in adedicated tank, this urea solution reduces nitrogen oxideemissions in vehicle exhaust. Initially rolled out at threepilot service stations in Germany, AdBlue was introducedat the first service station in France in June 2005. By 2008, all 400 Total-branded service stations and AS24outlets for trucks in France will offer AdBlue. It will also be marketed in bulk and in containers and cans.


27

Environmental StewardshipPrograms to Protect Air Quality

Efforts to improve air quality have been successfully pursuedfor many years in many countries, especially in Europe. Weare continuing our work to manage and reduce emissionsmore efficiently. In our refineries, the introduction of a programto prevent sulfur dioxide (SO2) peaks has considerablyreduced the frequency of air quality alerts. In addition, a planhas been developed to significantly lower SO2, nitrogen oxide(NOx) and particulate emissions by 2010, in line with E.U.directives. Substantial investments will be made during majorturnaround maintenance shutdowns over the next five years.Lastly, the sharing of experience among Group experts hasimproved NOx and volatile organic compound (VOC)measurement methods in particular, and honed ourknowledge of NOx reduction techniques to identify both thechallenges and the improvements that can be made.

Reducing Sulfur Dioxide (SO2) Emissions

200520042003 200520042003 20042003

70.7

87.0

100.299.0

10.012.1

68.8

46.0

200520042003 200520042003 200520042003

52.6

25.825.725.1

12.311.812.1

51.9

47.7

2005

10.1

• AdBlue pump meter at the Total service station in Communay,on the eastern Lyon bypass in France.


28

Managing Volatile Organic Compound (VOC) Emissions

Using an improved metering method in depots and terminalsand by conducting more and more fugitive emissionsmeasurement surveys across our businesses, we haveoptimized network maintenance and strengthened VOCemissions reporting. In addition to measures to reduce VOCemissions during the loading of gasoline in the marketingbusiness in Europe, we commissioned a vapor processingsystem (VPS) at the Feyzin refinery that processes thehydrocarbon vapors generated during loading of gasoline,LPG and aromatics onto railcars, benzene and LPG ontobarges and LPG onto trucks. The recovered vapor is used tofuel a gas-fired engine-generator producing 650 kW ofelectricity, or 1% of the site’s electricity requirements.

To optimize our reduction programs, the Solaize ResearchCenter (CReS) has tested a number of infrared camerasystems that visually pinpoint fugitive emissions from facilitiesin real time using spatial and spectral data processing. Theseleak detection tools are currently undergoing trials at anumber of refineries.

Eliminating Olfactory Disamenities

Although they do not necessarily have a harmful impact onhuman health, unpleasant odors can be a major source ofcomplaints from local residents. We are aware of this andhave developed a method to map and reduce odors aroundour sites. It consists of characterizing ambient smells on thebasis of a survey conducted by an outside consultant, thenquantifying the odors and measuring the contribution ofvarious areas of a site to map diffuse emissions. The olfactoryimpact of the site is then modeled to identify improvementareas and prepare an action plan whose effectiveness will be monitored. A survey of this type, designed to reduce emissions by 20%, is currently underway at the Feyzin refinery.

Programs to Reduce Water Use andProtect Water Quality

Our strategy to improve water conservation consists ofreducing use, treating and, where possible, recycling residualwastewater.

Reducing Use

After a survey of water use and discharges at each site,performed by a cross-business working group on waterconservation and recycling set up in 2004, six pilot plants in each of our segments looked at potential areas of savingsin 2005.

In 2006, a methodological guide will describe best practicesto conserve and recycle water. The working group will thenset medium-term targets for reducing water use, focusing inparticular on sites where industrial use competes with othercritical demands, such as domestic or agriculturalconsumption.

VOC Emissions(thousands of metric tons per year)

● Upstream ● Refining ● Marketing ● Chemicals

Freshwater use and releases (excluding cooling water) (millions of cubic meters per year)

● Freshwater releases ● Freshwater use

Low-VOC Products at Arkema

After Primgreen® LAT 12035 in 2002, Arkema introduced a new low-VOC product, Kynar® Aquatec RC10.147, in 2005. Primgreen® is a water-based primer for metalparts with a VOC content of less than 20%, well below theE.U. regulatory threshold of 35%. It has a less strong odorthan solvent-based products on the market.

Kynar® Aquatec is a new water-based fluoropolymer resinthat can be used on PVC, textiles and elastomer.

200520042003 20042003 200520042003

200520042003

200520042003

Upstream Downstream Chemicals

200520042003

- 20.4 - 20.5 - 21.8

73.3 71.060.9

- 65.7 - 61.9 - 61.7

51.1 49.551.9

-158.6-139.3

-134.3

118.5

89.7 93.3

89.8

21.623.825.3

85.187.8

19.418.9

13.510.3

2005

21.4

12.9


29

Improving Discharge and Release Quality

Begun in 2002 as part of the Exploration & Productionimprovement program, the sharp reduction in hydrocarbonreleases in water continued last year, reaching the target ofno more than 40 parts per million (ppm) for all subsidiaries.We are on track to achieve the target of 30 ppm for allsubsidiaries in 2007.

Exploration & Production hydrocarbon releases(ppm)

2005200420032002

2933

46

88

Downstream and Chemicals hydrocarbon releases (metric tons per year)

● Refining ● Chemicals

2005

123.1

2004

123.7

2003

127.7

2005

18.4

2004

36.4

2003

53.0

2005

0.88

2004

0.86

2003

0.87

2005

6.58

2004

5.35

2003

5.15

Chemical oxygen demand (COD) releases(thousands of metric tons per year)

● Downstream ● Chemicals

Chemicals: Sharp increase due to problems with fumetreatment reliability.

Suspended solids releases(thousands of metric tons per year)

● Downstream ● Chemicals

2005

4.5

2004

4.9

2003

5.2

2005

6.0

2004

6.2

2003

6.8

2003 2004 2005 200520042003 200520042003

115

1,432

787

259

891100

257184

Oil spills(cubic meters)

● Upstream ● Downstream ● Chemicals

While the higher volume of Downstream spills in 2005 is inpart attributable to a few major spills, the main reason issimply tighter reporting.

Reducing and Managing Waste

Landfilling and waste incineration, even with recovery of heat,are last resort solutions. Waste management begins with thedesign of processes and products that generate less wasteor, failing that, waste that can be recycled to recover itsresources or reuse it as energy.

Lubricants, Extended Life Before a New Life

Extending the life of lubricants reduces the frequency of oilchanges and the amount of oil used—some transmissionsnever require oil changes. We also produce biodegradablelubricants (3) and recycle used oil as fuel. In Cameroon, as partof the Ecolub process, nearly 600 metric tons of used oil wasblended with heavy fuel oil to make fuel sold to localcustomers in 2005. This solution has been adopted by otherOverseas subsidiaries, such as Madagascar and Niger. InCôte d’Ivoire, Total and the Environment and Living StandardsMinistry developed a system to collect used oil and blend itwith asphalt used for sealing.


30

Three-Phase Action to Prevent andManage Freshwater and Marine Pollution

The three phases of our action to prevent freshwater andmarine pollution are prevention, preparedness andmanagement to minimize the impact of an accident.

Prevention

To prevent incidents, we are strengthening transportationsafety (see page 41) and working to identify and reduce therisk of spills in cooperation with external research andexpertise centers, such as CEDRE, a French organization thatconducts research into accidental water pollution. We havefor a number of years financed studies designed to improveour understanding of the behavior of refined products andcrude oil spilled at sea to define appropriate mechanical andchemical pollution control strategies.

Preparedness

The Corapol team, which coordinates pollution controlresources, comprises around 30 experts who help us toprepare to respond to spills through strategic and operationalprocedures.

Emergency response plans specific to each facility describe thefirst line of defense for pollution control strategies, as well asthe measures to be taken to manage an accident and reduceits impact. In 2005, we published a number of guides onpreparing and standardizing these plans. Audits, exercises andpollution control training are held regularly in countries that in2005 included Nigeria, Cameroon, the Congo, Argentina, Syriaand Russia. Crisis management exercises also test cross-business cooperation; for example our U.S. subsidiary AtlanticTrading and Marketing Inc. (ATMI) conducted a “paper”exercise (1) with Total Petrochemicals U.S.A.

In addition, we work with international and regionalenvironmental protection associations and organizations.

Minimizing the Impact of an Accident

Our Parapol emergency spill response plan can quickly put inplace the capabilities needed to manage pollution of surfacewater, rivers or the sea. Parapol is based on an internal networkof close to 60 experts who can respond quickly.

The Fast Oil Spill Team (FOST) based in Marseille has pollutioncontrol equipment. On high-risk sites, it deploys equipmentpreventively and trains personnel to use it, and in 2005 tookpart in pollution control training. External resources are alsoavailable, such as independent scientific experts and pollutioncontrol equipment cooperatives shared by a number of oilcompanies, for example Oil Spill Response Limited inSouthampton in the United Kingdom and East Asia ResponseLimited in Singapore.

Educating Children and Their Teachers

In 2005, Planète Energies(2), a Web site with educationalresources for children, created a teaching guide on oil pollutionin partnership with CEDRE. The aim is to educate the public, andin particular children, about the impact of oil pollution. Availablefree of charge in 2006 to schools and anyone who requests it,the guide addresses oil characterization, pollution control andenvironmental protection resources, causes of spills, history ofspills, their impact and the main types of accident. The printversion is supplemented by a CD-ROM and a Web site hostedby CEDRE.

Hazardous waste (treated offsite) (thousands of metric tons per year)

● Upstream ● Refining ● Marketing ● Chemicals

200520042003 200520042003 200520042003

32.3

208

177.5

158

20.121.6 98.578.9

50.038.3

(1) A “paper” exercise tests emergency procedures but does not involve the use ofequipment.

(2) See www.planete-energies.com.(3) See page 31.

86.2

74.6

31

Systematically Remediating Brownfield Sites

After a facility is decommissioned, Total ensures that it does not present a risk forpeople or the environment and examines, in line with regulations, potential solutionsto make it suitable for future use, even when the main contamination results fromprior use or practices that were once legal but are now unacceptable. With the helpof outside engineering consultants and under the supervision of the authorities, weanalyze the risks to human health, water and protected species and determine thelevel of cleanup to be performed, in line with the planned use of the land and thefindings of studies.

To strengthen our soil remediation proficiency, we set up the Site and SoilRemediation Steering Committee (Coremed) in 2004. It helps Health Safety andEnvironment (HSE) managers using appropriate guides and training, promotessharing of experience and recommends organizational improvements. Remtec, thetechnical committee for soil remediation experts, acts as an advisor, especially formajor or high-risk projects, and ensures that actions are coordinated.

Refining’s CLEAN Project

In 2005, Refining launched the CLEAN project at its 12 European refineries and the Port Arthur refinery in the United States, which in particular entails dismantling of decommissioned facilities and buildings. The project is divided into a number of stages:• Identifying the issues to be addressed, in cooperation with the refineries.• Preparing and prioritizing a list of actions and an annual budget.• Recommending the best procedures and techniques to be used by the refineries.• Helping the refineries and tracking the progress of operations and work performed

under the supervision of the refineries.• With the refineries, performing acceptance of the work.

Rehabilitation and Reconversion of the Grande Paroisse Site in Toulouse

Total will be donating the former AZF plant site, occupying 80 hectares, to publicand private operators. A cancer research center and a public park will be built on thesite and a budget of €100 million has been allocated for rehabilitation. This operationwill extend our commitment to support the Toulouse economy. Total has alsodonated €10 million to the National Research Foundation created in Toulouse to support the Cancer Center.

Endorsed by independent organizations and approved by the government, the rehabilitation plan is based on detailed knowledge of the site, where we took 650 samples of materials and drilled 2,000 cores. Eighty-three piezometers (1) weredrilled to analyze groundwater.

The plan was presented to the public and the worksite opened to associations andlocal residents’ organizations.

To avoid the transportation and storage of contaminated soil, 80% of the 55,000metric tons of earth and materials concerned will be decontaminated onsite and theresultant waste recycled.


Recycled HDPEContainers

The Normanplast (2) plant inGonfreville-l’Orcher, France,manufactures 26 million containersfrom high-density polyethylene(HDPE), mainly for the lubricantmarket. Tested in 2005, recycledHDPE from selective sorting ofhousehold waste, such as milk anddetergent bottles, has been usedsince February 2006. The gray HDPEproduced by recycling has the sameproperties and quality controlcharacteristics as the original HDPE.Mixed with new HDPE and dye, itaccounts for 15% of the container.The project, conducted withrecycling specialists, meets keysustainable development challengesof competitiveness andenvironmental protection.

Total Biolubs, anEnvironmentally FriendlyProduct Line

Biolubricants biodegrade quickly and are non-toxic and environmentallyfriendly. Total has developed theBiolubs line of biolubricants for use inapplications where a leak or spillcould potentially prove harmful to theenvironment, such as river and coastalfishing, boating, constructionmachinery and farm machinery.

Total Partners ConSoil2005, the WorldConference onContaminated Soil

Since 1985, ConSoil, a biennialconference on polluted soil, hasprovided a forum for researchers,representatives of governments andcompanies involved in soilremediation. The ninth conferencewas held in Bordeaux, France in 2005.Total presented the challenges of soilremediation for a multinational oil andgas company.

(1) Holes around ten centimeters in diameter drilled to the water table, designed to measure water level and quality.(2) Part of Total S.A.’s Lubricants Department.


32

In 2005, a total of 1,200 projects took part in the TotalEcoChallenge, three times as many as in 2004. Nearly 40 milliontrees have already been replanted. In 2001, the CompañíaEspañola de Petróleo SA (CEPSA) refinery, in which Total has aninterest, in Huelva, rehabilitated a lagoon close to the plant.Landscaping integrated the Cepsa complex into the Huelva touristarea, and a discovery area offering an educational program wasopened for the general public. In Uganda, Total supports theNational Lake Rescue Institute (NLRI) program to educate thecommunities around Lake Victoria about risks related to water andenvironmental protection. In New Caledonia, Total Pacific has since2003 supported the action of the Environmental IntroductionCenter to protect the lagoon and mangrove forests. Its 32 servicestations distributed 15,000 brochures on mangroves, while aneducational leaflet was published for use in schools to makechildren aware of the critical role of this fragile ecosystem.

The Total Corporate Foundation forBiodiversity and the Sea

In addition to environmental protection activities related to ouroperations, we conduct, through the Corporate Foundation forBiodiversity and the Sea, corporate philanthropy initiatives forprojects that are implemented over several years. Organizedby the Foundation in partnership with the Parc National dePort-Cros, the French Research Institute for OceanExploitation (IFREMER), the World Conservation Union and theNational Oceanography Centre, Southampton, the ThirdEntretiens de Port-Cros symposium was held on PorquerollesIsland in October 2005. The presentations addressedknowledge of ecosystems, the impact of human activities, andconservation measures. In Singapore, the Panglao program,the biggest ever undertaken to study crustaceans andmollusks, was presented in September. Sponsored by theFoundation, it involves 24 researchers from 19 countries, whowill inventory fauna and measure the abundance of species atan ecologically complex coastal site in the Philippines.

Maintaining BiodiversityA product of millions of years of evolution, biodiversity is asource of wealth for mankind and important to its future.

A Group Policy

Aware of our potential environmental footprint, we have beenactively involved in maintaining biodiversity for many years.Initiatives include the creation of the St. Fergus DunesManagement Committee in Scotland more than 25 years ago,the creation of the Corporate Foundation for Biodiversity andthe Sea in 1992, the introduction of an environmentalmanagement policy more than ten years ago, withenvironmental impact assessments for all major projects and amanagement system at production facilities, and support forregional and international conventions that is embodied in ourHealth Safety Environment Quality Charter and our Code ofConduct.

We made our commitment more formal with the publication of abiodiversity policy statement (1) and a roadmap discussed firstwith the World Conservation Union (IUCN). The policy consistsof four principles: • Minimizing our biodiversity footprint.• Integrating the protection of biodiversity in the Environmental

Management System.• Paying special attention to specific regions whose biodiversity

is very rich or vulnerable.• Taking part in scientific research and helping to improve our

knowledge of biodiversity.

To ensure the proper application of this policy and worthwhileresults, we prepared a practical methodological guide toincrease knowledge of biodiversity, share best practices andtechniques, promote the development of biodiversity actionplans, and educate front-line employees. This method is basedon observatories comprising scientists, academics, associationsand our main socioeconomic stakeholders. It will now be testedat a pilot site in each unit.

A Variety of Field Initiatives

The refineries and subsidiaries deployed a wide array of initiativesto maintain biodiversity in 2005. In Kenya, we continued the TotalEcoChallenge reforestation program launched in 2003 withlaboratories, nurseries, NGOs and local communities. Onehundred service stations—tree centers—offer their customersaffordable trees and advice from nursery managers. The aim is toreplant 100 million trees a year through large-scale mobilization ofthe population.

The Three Components of the BiodiversityMethodological Guide

• Know the biodiversity of the site and its biodiversityfootprint by consulting experts and introducing resources.The site is positioned in relation to protected areasrecognized by the United Nations.

• Preserve biodiversity and reduce impact to a minimum atall stages of site management, from construction todismantling, by promoting best techniques and practices,by integrating biodiversity objectives in environmentalmanagement systems, by continuously monitoring floraand fauna using biodiversity indicators, and by providing,in the event of damage that could not be avoided,compensation to restore the ecosystem’s functions.

• Go further through local projects and scientific and R&Dpartnerships such as the BioZaire project (2) conductedwith IFREMER.

(1) See www.total.com.(2) Research project on deepwater biodiversity offshore the former Zaire.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005SAFETY

33

Safety Practices and BehaviorAt Total, the safety of people and property is a major concern inthe conduct of our operations. Our industrial risks are related tothe flammable, explosive or toxic products that we manufactureor use in our processes, as well as to industrial operations andtransportation. Action plans are deployed to enhance the management of theserisks. 2005 was the final year of a four-year plan launched in2002 that set Group-wide targets to manage technological risksand ensure workplace safety. The new 2006-2009 plan continues to focus on these areas, withthe aim of making Total an industry benchmark. The commonthread running through all these measures will be enhancing asafety culture embraced by all of our employees and partners.

A near 60% reduction inoccupational accidents

over four years


Challenges and Key IndicatorsTechnological Risks

• Total operates over 500 sites classified under the E.U. Seveso Directive or presenting an equivalent level of risk outside the E.U. area.

• Sixty-eight percent of these sites are covered by safety management systems audited in accordance with internationallyrecognized protocols. The target is 100% by 2009.

Occupational Accidents

2002-2005 action plan

• 59% reduction in the number of occupational accidents (Group and contractor employees, with and without lost time) since2002, compared with an initial target of 60%.

• 6.3 accidents per million hours worked in 2005.

• Oil, gas and petrochemicals: 3.9 accidents per million hours worked in 2005 (down 66% since 2002).

2006 target

• A further 10% reduction in occupational accidents to 5.6 per million hours worked by end-2006 across our upstream,downstream and chemical operations.

TransportationAnnual amount of products transported:

• Europe, petroleum products and chemicals: 70 million metric tons by road, 15 million metric tons by rail, 15 million metrictons by inland waterway.

• World, petroleum products by sea: around 120 million metric tons.

Total is involved in the operation of over 23,000 kilometers of onshore pipelines.

2009target

2006target

200520042003

45%

58%

68%

78%

Internationally Recognized ManagementSystems for Sites PresentingTechnological Risks

Based on industry-recognized organizational principles andbest practices, safety management systems (SMS) are part ofa continuous improvement loop that consists of setting policyand objectives, deploying resources to meet those objectives,assessing outcomes and adjusting action plans. Successfulimplementation requires the commitment of all of ouremployees.

Each unit tailors its SMS to its own specific requirements,such as type of activity, level of risk and size of facilities. Thesystems are periodically audited and their effectiveness ratedusing international protocols and assessment systems, suchas Det Norske Veritas’ (DNV) International Safety RatingSystem (ISRS) in Refining and the main Chemicalssubsidiaries. The E&P business applies the proprietaryMaestro yardstick, whose compliance with the OHSAS 1800safety standard and the ISO 14001 environmental standardwas certified in 2005 by Bureau Veritas. For less complexsites, such as oil storage terminals, we use simplifiedprocedures integrating the same basic requirements.

In 2005, our priority remained SMS deployment and audits atsites presenting technological risks. At end-2005, 68% ofSMSs had been audited, versus 58% at end-2004, and thisfigure is expected to rise to 78% at end-2006. Our target isto reach virtually 100% coverage of our sites by end-2009.

Safety Management SystemsDeployment and audits at sites presenting

technological risks

34

100%

Managing Technological Risks To enhance our operational and facility safety, we use safetymanagement systems rated by internationally recognizedindependent organizations. We systematically analyze risksusing a set of procedures that are gradually beingstandardized, develop prevention through action plans andpromote the use of feedback from accidents and near-misses. Our stated policy is to reduce industrial risks to aslow as reasonably practicable, identify emergency situationsto lessen their impact, and integrate our facilities moreseamlessly into the surrounding urban environment.


35

Patrick Toutain

HSE Manager, Total Angola

“The wells in the Dalia field are highly active andproduction flowrates and pressures can be extremelyhigh. We took account of these conditions in our riskanalysis during the project design stage and consideredthe highly unlikely scenario of simultaneous failure of oursafety barriers. Our calculations showed that the flaredischarge system would be inadequate in thesecircumstances.

In view of this, we designed and built a high integrityprocess protection system, known as HIPPS,incorporating additional redundant pressuremeasurement and valve shut-off systems to cut off flowdelivery in the event of failure of the conventionalsystems. This equipment will be regularly tested.Combined, these measures guarantee a very high level of safety for both our personnel and our facilities.”

Designing Redundant Safety Barriers forthe Dalia Project

Work continues on the Dalia project to develop adeepwater oil field 230 kilometers offshore Angola in waterdepths of 1,200 to 1,400 meters. Producing at such depthsrequires the installation of separator units for the mixtureof oil, water and gas produced, on a floating production,storage and offloading (FPSO) vessel tied into thewellheads by flexible risers.The mixture pressure is initially too high and has to bereduced before separation can be performed. To containthe risks, we have installed safety barriers that consist of overpressure detectors on the risers and isolationvalves that automatically close.

Managing Technological Risks: Analysesand Reduction Measures

To protect both the employees working at our facilities andlocal residents, we are reducing risks at our facilities to as lowas reasonably practicable (ALARP) by incorporating the latesttechnical advances. Our risk limitation measures are basedon analyses carried out during the project design stage orwhen significant changes are made to existing facilities.These analyses are periodically reassessed. Issued in 2004 and introduced gradually across ourbusinesses in 2005, Group Safety Guideline No. 8 is theformal statement of our risk analysis methodology, whicheach unit tailors to its own improvement programs. Publishedin 2005, the related application guide explains how themethod is to be applied and how to use the results. Itstresses the concept of important safety measures.In France, the enabling legislation for the Act of July 30, 2003,enacted in 2005, supplements the regulations on preventingtechnological risks and substantially modifies the proceduresapplicable to the performance of regulatory risk analyses,which are the basis of Technological Risk Prevention Plans(PPRT). Our methodology for analyzing technological risks isconsistent with this approach, and we are currently involved inthree PPRT pilot schemes designed to strengthen land useprocedures to protect the urban environment around sites.

Engaging in Dialogue to Improve theIntegration of Sites PresentingTechnological Risks

The first step in integrating such sites into what is often a built-upenvironment is to prepare prevention plans based on dialogueand discussion with local residents.In France, many of Total’s sites had begun this process evenbefore the enactment of the recent enabling decree for the Act ofJuly 30, 2003 on preventing technological risks, which providedfor the creation of Local Information and Dialogue Committees.Several such committees created in 2005 for fuel depots arestarting to inform neighbors about operations at these sites andrisk prevention. To ensure that everyone speaks the samelanguage, Committee members will be given a small glossaryentitled Fuel Depot Risks, 200 Basic Terms, published in 2005. In many other countries, too, Total is involved in dialogue groupswith local residents or, where necessary, sets up suchorganizations. Although discussing risks is not always the mainpurpose of these organizations, they are increasingly focused onsafety issues.In the event of an incident that could have an impact on theimmediate vicinity of a site, we keep local residents and electedrepresentatives informed. The quality of the information and thespeed with which it is delivered are both factors in the subsequentpost-incident analysis. For example, the Carling petrochemical plantin France has improved its public information procedures followingan accidental atmospheric release of styrene that led to a numberof local residents experiencing breathing difficulties.

• Dalia FPSO in Angola.


Practical Outcomes of Feedback

Some incidents occurred in 2005 at Total’s refineries and atother manufacturers’ sites during the complex startupoperations following production shutdowns.

After much thought and analysis, the units developedrecommendations concerning the location of temporarybuildings on site and, more generally, the planning ofcombined production and maintenance operations,oversight and procedures for complex maneuvers, andsafety systems designed to prevent the release offlammable products to the atmosphere.

Four Trial Projects with the Eco MairesAssociation

The partnership agreement signed in June 2005 withFrance’s Eco Maires association seeks to “promoteindustrial practices that respect the legitimate interests of the local environment and take due account of all thestakeholders involved, in particular local governmentauthorities in the immediate vicinity of plants.”

Total is involved in four trial projects focused oncooperation with local authorities and residents, managingbrownfield sites, providing information aboutindustrial disamenities, and emergencypreparedness. The experience gainedfrom this front-line involvement will serve as a basis for a methodology that can be applied at other sites in Europefacing similar issues.

Preparing for Emergencies

The tsunami in Asia in late 2004 was followed in 2005 byother natural disasters, including Hurricanes Katrina andRita, which swept the southeastern coast of the UnitedStates in August and September and damaged three of ouroffshore E&P platforms and a dozen of our chemical andpetrochemical units in the Houston region.

To prepare ourselves for such events, we have developeda number of monitoring systems. For example, Total E&Pin the United States tracks hurricane formation andprogress on the National Hurricane Center Web site. Eachunit has set up a hurricane task force to develop anddeploy plans to shut down facilities and evacuatepersonnel in the event of a storm warning.

Accidents: Lessons Learned fromFeedback

Sharing information and feedback from accidents both insideand outside Total plays a crucial role in preventing similaraccidents from occurring at other sites. Accidents or near-misses may be the subject of Safety Feedback Noticesthat describe the circumstances and consequences of theevent, analyze the underlying causes and make appropriatepractical recommendations. Our operational teams use thenotices to determine what prevention measures might applyto their site. Since 2003, a hundred or so have been issuedeach year and circulated across Total. They have beenentered into a database that can be accessed from theintranet or a CD-ROM.

Emergency Preparedness: Clearly Defined Roles

The final link in the risk management chain, emergencypreparedness is the key to dealing effectively with a crisis.Total may find itself confronted with a wide array ofemergency situations, such as an industrial accident, naturaldisaster, loss of security due to an act of terrorism or civildisorder in unstable countries, and health scares. The management of such situations requires a high level ofcoordination among all units and the fast response of amultidisciplinary network of skills and expertise. We haveintroduced a three-tier system that operates at the local level(site or subsidiary) to manage the situation on the ground, atthe business level where a multidisciplinary team is deployed,and at the corporate level, which makes longer-termdecisions and provides the necessary oversight.

Our internal audit of this organization in early 2005recommended the introduction of better formal proceduresfor post facto analysis of crisis management. This processhas been in place since 2005 and several avenues forimprovement have been outlined for 2005-2006, namelydesignating a coordinator for each country, speedily notifyinglocal residents and authorities, and activation of a pre-crisisunit for events requiring prior monitoring, such as avian fluand hurricane warnings.

36

• Fire-fighting exercise at the Lussagnet natural gasstorage facility in France.


37

Buncefield Explosion and FireAt 6:00 a.m. on December 11, 2005, a series of explosions rippedthrough the Buncefield oil storage terminal in North London,followed by a fire that blazed for several days and generated anenormous cloud of smoke. Large numbers of emergencyservice teams were involved in bringing the fire under control.Forty-three people were injured during the accident, whichseriously damaged neighboring office buildings and homes.

The terminal is operated by Hertfordshire Oil Storage Ltd(HOSL), in which Total UK has a 60% stake, the remaining 40%interest being held by another oil major.

Within a few hours of the accident, a local crisis unit was set up,providing expert assistance and logistical support to theemergency services, as well as a toll-free hotline offeringinformation and assistance to the general public. HOSL providedmaterial support to local residents and continues to do so forpeople still dealing with the aftermath today.

The local unit also worked in close collaboration with thegovernment agencies concerned, including the EnvironmentAgency, to reduce the environmental impact of the accident. For example, air analyses were coordinated with the HealthProtection Agency and samples taken in the immediate vicinityof the site and beyond failed to reveal any anomalies. Continuedmonitoring of soil impact remains a priority.

The U.K. industrial inspection authorities, and particularly theHealth and Safety Executive, were asked to investigate thecauses of the accident, while HOSL and Total UK set up theirown investigation committees to provide effective support forthe public authorities. A progress report describing the eventsthat led up to the accident and its consequences and outliningthe way in which the investigation would proceed has beenpublished. The aim is to establish how a cloud of flammablevapor was able to build up in the terminal and how it wasignited. Once identified, the causes of the accident will helpTotal, and the industry as a whole, learn specific lessons usefulfor all distribution activities.

Improving Workplace SafetyReducing the number of accidents in the workplace requires a proactive, long-term policy pursued in cooperation withcontractors aimed at improving the behavior of all participants.

A Steady Decline in OccupationalAccidents

Our commitment to continuously reducing the frequency andseverity of occupational accidents was reflected by theadoption of an accident prevention plan for the period 2002-2005 that aimed to reduce the total recordable injury rate(TRIR) for Total and contractor employees by 60%.

The TRIR has fallen by 59% over the period, from 15.4 permillion hours at end-2001 to 6.3 at end-2005. For oil, gasand petrochemical activities, it has declined to 3.9, close tothat reported by the five other international oil majors. AndExploration & Production’s TRIR is one of the lowest in theindustry. The improvement in each of our businesses reflectsthe commitment of all our teams to enhancing safety.

Furthermore, the lost time injury rate has been halved since2002. The most serious accidents and high-severity-potentialincidents are analyzed in detail and reviewed by theManagement Committee of the business concerned.

Injury Rates, Group and Contractor Employees

Total Recordable Injury Rate (TRIR)number of recordable incidents per million hours worked

Lost Time Injury Rate (LTIR)number of lost time injuries per million hours worked

0

23.9

55.9

7.5

3.6

6.2

6.37.4

9.5

11.8

15.4

4

6

8

10

12

14

16

18

Dec-01

Target TRIR

Real TRIR

Real LTIR

Dec-02

LTIR down 52%

TRIR down 59%

Dec-04Dec-03 Dec-05

Crisis Management Organization

CorporateTotal Strategic Strategic watch

Unit

Business Material and Ministries Crisis logistical support: National elected Management coordination, representatives Unit communication, National and assistanceinternational press

Site, country or subsidiary Crisis management Local authorities On-site unit operations: fieldand elected (local operations operations, internal representatives unit) and external emergency Local and regional press response plans

ManfredGieseler

Managing Director of the Leuna refineryin Germany

“Our contractor safety policy mirrors the Group Safety Guideline and is designed to forge a closepartnership in which we learn from each other.

Contractors account for a third of the hours worked at our refinery, and are mainly employed for maintenance work. Our safety performance has continuously improved in recent years. In 2005, we reported a TRIR of 2.06 for refinery personnel and 1.44 for contractor employees. Our last lost time injury dates back to February 6, 2003, which means that we have now gonemore than 5 million hours without this type of incident.

Senior management’s complete commitment is a key success driver—our managers have to setthe example. That’s why I asked each Management Committee member to assume individualresponsibility for a specific aspect of our safety management system at the site.

More particularly, a professional approach to safety is one of the factors we take into accountwhen selecting our contractors. We then apply effective tools, such as computerized workpermits, prevention plans, preliminary safety checklists, and incident/accident analysis in smallworking groups, which allows us to foster a proactive, forward-looking safety culture. We franklydiscuss work safety and risk analysis at our daily, monthly and yearly meetings. In addition, werecently launched a program to raise awareness about safe behavior for everyone, in mixedgroups of Total and contractor employees.

Maintaining good safety at our site requires that all of our employees remain constantly alert. The reward is that when safety is properly managed, all the other performance indicators at therefinery, such as reliability, cost control and deadlines, are equally well managed. This onlystrengthens our belief that properly managing safety is an integral part of being a good manager.”


Our safety reporting guide was updated in 2005. In particular,it specifies the criteria for accident classification and ensuresthat these criteria comply with international standards.Scheduled for completion in mid-2006, a major internal audithas been undertaken to validate this process and check therelevance of data and the efficiency of the consolidationsystem.

The new 2006-2009 safety improvement plan is targeting afurther 10% reduction in TRIR to 5.6 accidents (with orwithout lost time) per million hours worked at Total in 2006.

Enhanced Contractor Safety

Our occupational accident prevention policy also extends tocontractor and service provider employees. Issued inSeptember 2003, Group Safety Guideline No. 5: ContractorSafety Policy specifies the same safety requirements for bothTotal and contractor employees. The first stage in ourcontractor safety process is to select companies on the basisof specifications that include our safety requirements.

Applied across our organization, these principles havereduced contractor TRIR by 67% between 2001 and 2005.

The Five Essential Rules of Isolation

Some accidents during maintenance work are the result offailure to properly isolate equipment. Published in June2005, Group Safety Guideline No. 7: Isolation of EnergySources and Hazardous Substances before Work isdesigned to prevent serious accidents during work onequipment in the presence of non-isolated energysources—mechanical and electrical energy, heat—and/orof substances that may produce hazardous reactions. Itsets out five essential rules for safe, successful isolation: • Verification of isolation plans after risk analysis.• Inspection of physical barriers by the task performer and

the equipment operator.• Venting or discharging of the equipment.• Checking the absence of residual energy or substances.• Informing employees of the risks entailed in performing

work and the protection provided by isolationarrangements.

Continuous improvement

Assessment and feedback

Make sure that the best contractors want to continue

working with us

On-site coordination and supervision to ensure that safety requirements are met

Properly informing and raising the awareness of contractor employees

Risk analysis and prevention plan in collaboration with contractors

Safety, one of several selection criteria

1

2

34

5

Contractor Safety Policy, a Multi-Stage Process

38


39

Alfonso Tripisciano

Sustainable Development, Safety andEnvironment Manager, Total Italia, anddriving risk prevention correspondent

“Total Italia has 170 salesmen and technicians who eachyear drive an aggregate total of over 7 million kilometers.Safety behind the wheel is therefore an imperative for us.Over the last two years, each of our regular drivers hasbeen trained in defensive driving on an off-road track. Infact, we’ve run awareness campaigns about safe drivingfor all of our employees and their families. Participantshave been given the opportunity to use a simulator toexperience what it feels like to be involved in a head-oncollision or have their car roll over and to test theiremergency braking reflexes.In 2005 we came up with the unique Safety on the Roadconcept. A specialized instructor accompanies a salesrep on a routine trip and comments on the situationsencountered and how the rep deals with them. Thisprogram is reported in our in-house newsletters and onthe intranet. An instruction video will be used to presentthe lessons learned from the initiative to all of ouremployees. In 2006, we’ll be launching the Golden Steering Wheelcompetition offering an annual prize to the employee withthe best road safety record.”

Programs to Improve Driving Skills

Despite the progress we have made, regrettably there were22 on-the-job fatalities in 2005. Most were due to roadaccidents: 15 during product transportation and one during a business trip.

The recent growth in operations in countries where drivingconditions may be dangerous, particularly in Africa, hasworsened the situation. We are strengthening our cooperationwith carriers in these countries to improve driver safetythrough long-term contracts. This means that our statisticsinclude the often serious accidents that occur in thisparticular environment.

As early as 2003, we introduced a Group Safety Guideline ondriving safety. Units are stepping up their preventive actionsby rolling out programs based on defensive driving courses,enhanced vehicle maintenance and safety features, improvedtravel preparations, and strengthened incident and accidentreporting and analysis procedures. They also run educationalcampaigns targeting the general public in many countries.

A new level was reached in 2005 with the creation inbusinesses and units of a global driving risk preventionnetwork of correspondents to promote sharing of experience,identify best practices and help improve travel preparations (1).

Since this subject lies outside our particular area of expertise,we are consolidating our partnership with French road safetyassociation La Prévention Routière to organize awareness-raising courses and dedicated training. In the same vein, in2005 we joined the Global Road Safety Partnership (see page43), and our subsidiaries take part in public awarenessinitiatives in their own countries alongside local associationsand authorities (see page 66, PATH in Madagascar).

(1) Total’s worldwide policy since 2003 has been to ban the use of cell phones, with orwithout a hands-free system, when the vehicle is in motion.

Contractor Total Recordable Injury Rate (TRIR)The number of hours worked by contractor employees varies from one business to another. It is high in Upstream, where there are a large number of construction projects,

and in Downstream maintenance and supply chain activities. In contrast, it is much lower in the Chemicals business.

● 2001 ● 2002 ● 2003 ● 2004 ● 2005

1

1

5

15

22 fatalities in 2005 by cause (Total and contractor employees)

● Operations ● Product transportation other than by road● Product transportation by road and loading

● Personal transportation by road

Exploration & Production Gas & Power Refining & Marketing Chemicals

12.2

6.04.6 3.1 3.0

9.56.6

4.02.0

14.5

10.0

6.74.6

20.919.2

14.813.2

15.3

22.726.7


Fostering a Shared Safety Culture

The common thread running through all our programs is toforge a strong safety culture embraced by all of ouremployees and partners. That’s the aim of Group SafetyGuideline No. 6, issued in late 2004 and deployed in 2005,which focuses on the role played by management and callson all employees to play a part in enhancing safety, forexample by reporting hazardous situations.

Set up to support the implementation of the guideline, theSafety Behavior cross-business network reviewed Total’sinitiatives in 2005 and made its first recommendations. Thesewere leveraged by the units involved in safety improvementprograms, particularly with regard to management leadershipand employee involvement. Exchanges were developed withthe Industrial Safety Culture Institute and the main experts inthis area.

For the past three years, the annual performance reviewshave included discussion by the supervisor and employee of health, safety and environmental objectives. A set ofrecommendations, published prior to the reviews in 2005,helps supervisors set targets by providing examples. All theseactions help to enhance safety.

In addition, we use employee safety perception indicatorsand some sites and units also conduct dedicated surveys. At corporate level, the employee satisfaction survey (see page 52) has since 2005 included indicators concerningemployee perception of safety issues. The initial findingsreveal good overall awareness in the businesses.

Motivating Units

To progress from a “forced” safety attitude to one basedon individual conviction, Exploration & Production haslaunched a campaign aimed initially at management.Meeting in workshops, managers have charted a processdesigned to forge a shared safety culture. After applicationat headquarters in 2005, the process will be implementedby selected subsidiaries on a trial basis in 2006.

In Refining, a campaign dedicated to operationalemployees focuses on training personnel to analyze theirtasks, particularly the most critical ones, and therebyencourage them to establish formal “good behavior” ruleson their own.

The Chemicals business continues to work on itsHighlights program, in which teams get together todiscuss topics illustrated by a video, including example-setting, workshop cleanness, feedback and reporting ofunsafe practices. These meetings produce practicalcommitments.

Enough

61 64 65

121318

19 1515

626059

Enough

Not enough

Not enough

Employee Perception of Safety Issues: Findings of the Satisfaction Survey

● 2003 ● 2004 ● 2005

Attention Total pays to safetyin respondent’s opinion

Attention unit pays to safety in respondent’s opinion

40

Enhancing the Safety ofHazardous MaterialsTransportation

Our operations involve transporting hazardous materials, suchas petroleum products, chemicals and natural gas, fromproduction sites to plants and refineries and from there to endusers, such as manufacturers, consumers and servicestations.

Whether our products are transported by pipeline, sea, inlandwaterway, road or rail, our risk management is always basedon the same principles: carrier selection, equipment selectionand inspection, and certification of transportation chainparticipants. We encourage carriers to develop safetymanagement systems (SMS) and emphasize accidentreporting and feedback.

Our programs are also aimed at improving safeguards againstsabotage and terrorism.

Source: IPSOS.


41

Our Transportation Risk ManagementPolicy

Each mode of transportation is efficient in its own way.Pipelines and tankers are well suited to large volumes overlong distances. Road transportation is the only way to reachend users over short distances or when there is no othertransportation infrastructure. Rail transportation is preferred tocarry products between two sites. What we have to do isenhance the safety of each of these modes and, where thelocal environment allows, to replace one mode with another,safer one.

In 2005, transportation risk analysis procedures werestrengthened and organized across all our businesses. Inroad transportation, for example, the process of selectingroutes with carriers increasingly incorporates accidentstatistics related to roads and region.

Accident reporting and analysis, which require trust-basedrelationships among all participants in the transportationchain, have been consolidated, particularly for shipping andinland waterway transportation. In addition to feedback fromthe most significant accidents, the process is helping toimprove the reliability of tracking indicators.

Carriers operating in all modes are gradually introducingSMSs that can be audited by our units using protocolstailored specifically to each mode. Minimum standards andan auditing protocol have been developed for roadtransportation in Europe. Units operating pipelines have alsocommitted to the SMS development program, following thesame approach as our industrial facilities.

In tandem, Total has pursued a policy of stringent vetting ofbarges, ships, railcars and trucks. The specifications for fleetreplacement include explicit safety requirements.

The vetting procedure also covers carrier accreditation andqualifications. In addition to taking legally required trainingcourses for hazardous materials transportation, carrieremployees, such as truck drivers, must take additional safetycourses jointly approved by Total and the carrier. Our unitsalso train contractor employees in the risks associated withusing onsite equipment. In 2005, they redesigned the coursesto make them clearer, more user-friendly and more effective.

Tighter International Shipping Regulations

A number of international initiatives were implemented in2005 to strengthen shipping safety:

• Presentation by the European Commission of its thirdMaritime Safety Package, aimed primarily at improving theeffectiveness of the legislation already in place:

- Stricter conditions for the granting of flags by Flag States.

- Approval of classification societies.

- Stricter Port States control inspection, with the ultimateaim of 100% inspection of vessels.

- Improved legal framework for “places of refuge.”

- Greater and more widespread use of automatic vesselidentification system and traffic monitoring.

- Harmonized procedures for accident investigations.

- Increased liability for shipowners and operators.

• Adoption of standardized rules by classification societiesthat are members of the International Association ofClassification Societies (IACS) to improve the robustness ofvessel structures.

• Adoption of specifications by the Maritime SafetyCommittee of the International Maritime Organization (IMO)for the development of standards on ship design andconstruction.

• Decision by the European Maritime Safety Agency tocharter four pollution response vessels to operate in theBaltic, the English Channel, the Atlantic and theMediterranean.

At the same time, Total is pursuing a policy of enhancedsafety in relation to shipowners and the modernization of the fleet:

- Incorporation of technical advances into new vesselspecifications, such as the gradual introduction of the useof inert gas systems in smaller vessels, double-hull bunkertanks and improved redundancy of propelling equipment.

- Continuation of fleet replacement program andimprovement of the time-charter fleet (long-termcontracts). Fifteen vessels were added to the fleet in 2005,of which ten were newbuildings. Another ten vessels arestill under construction for future delivery.

- Gradual integration of the Tanker Management and SelfAssessment guide (TMSA) into our shipowner auditingsystem: self-assessment quality and safety criteria forshipowners, developed by the Oil Companies InternationalMarine Forum (OCIMF).


Driss HamdaouiDelivery Safety Inspector, Marketing France

“Safe behavior dialogues with drivers are critical to safety management and are based on observingtasks performed during truck loading at the depot or unloading at the service station. We comment onunsafe actions by the driver or on high-risk situations. We also bring up positive points. Once theconversation is over, we draw conclusions in terms of the lessons we can learn with regard to either thedriver or the activity itself. We can implement immediate corrective measures and prevention initiatives.

The drivers find these conversations very helpful. The managers of the carriers involved are also veryinterested in what we’re trying to do, and some have actually started to develop their own internalprocedures.”

drivers to teach them the basics concerning the risksassociated with these facilities. After answering a quiz, driversare given a badge to be presented each time they arrive atthe depot. In addition, delivery safety inspectors conduct safebehavior dialogues with drivers during loading and unloadingoperations, when incidents are most likely to occur. A carrierrepresentative is also present during these exchanges. Extending the reach of SMS, both internally in terms ofdelivery organization and externally with regard to carriers, isanother major objective of improvement programs. Over 85%of the volumes transported are covered by a carrier SMS. Our objective is to achieve 100% coverage within the nexttwo years. Delivery safety inspectors regularly inspect vehicles. Follow-up of any non-compliances detected and accident analysisare used to identify any technical modifications that may berequired. For example, a study carried out after repeatedreports of incidents involving the air suspension systems ontrucks resulted in changes being made to the originalequipment manufacturers’ (OEM) specifications.

The PATROM Program in Africa and the Pacific andCaribbean Regions

Launched in 2002-2003, the PATROM road transportationimprovement program addresses specific problems posed bydriving conditions in certain countries, especially in Africa,such as the condition of the roads and signage, vehicleroadworthiness, and driver and carrier qualifications. Unlike inother countries, incidents occur more frequently when thevehicle is in motion than during loading or unloadingoperations, sometimes with serious consequences (see thestatistics on fatal accidents on page 39).PATROM addresses all improvement levers, such as vehicleselection and inspection criteria, carrier selection, and drivertraining in cooperation with their employers. A number of measures increased the effectiveness of actions in2004-2005, including additional driver training, night driving bans,routine inspection of all vehicles entering the fuel depot, and anannual inspection based on a detailed checklist. Total is resolutelypursuing this policy. Under one program currently operating on atrial basis in Mali and Madagascar, trucks will gradually be fittedwith event data recorders. Our subsidiaries will also help carriersto introduce SMSs similar to those used in Europe.

On another note, the experts appointed by the DunkirkCommercial Court in relation to the Erika affair submitted theirfinal report on November 28. The experts found that thevessel’s tank structures had been badly corroded, and alsohighlighted a number of contradictions and anomalies withregard to the way measures had been carried out by therepair yard, which had been approved by the classificationsociety. The outcome was that the documents issued did notreflect the true condition of the vessel, which failed to meetthe standards for its class.Consequently, according to the report, the cause of theshipwreck was attributable to abnormal corrosion of theinternal structures of the vessel that could only have beendetected by inspections performed in the shipyard by theclassification societies, and not by the inspections conductedby the port authorities or by inspections performed when thevessel was chartered.

A Raft of Road Transportation Initiatives

We truck very large volumes of finished products, such asgasoline, home heating oil and aviation fuel, to a variety ofdelivery points, including service stations, individualconsumers, industrial customers and airport fuel depots.

Deliveries to Service Stations in France

In France, 750 drivers employed by around 40 serviceproviders delivered 12 million cubic meters of finishedproducts to service stations in 2005, covering a total ofalmost 50 million kilometers in the process. This activity isregulated by safety standards and carriers are selected onthe basis of their professionalism in this respect. In addition,Total has developed a program aimed specifically atimproving safety. Since 2002, delivery safety inspectors havebeen appointed to implement the program in our day-to-dayoperations. The number of accidents during transportationand loading fell in 2005, while the number of non-compliances noted during inspections has sharply declined.Analyses highlight the importance of the human factor inaccidents, so the first objective of our improvement programsis to take this factor properly into account. Emphasis isplaced on the quality of the reception given to drivers at fueldepots. A training CD and an introductory guide are given to

42


43

Security: Preventing Sabotage

Transportation activities outside Total’s industrial sites or attheir interfaces with public areas may be targets of sabotageor terrorism. Countering such threats requires collectivepreventive action.

International regulations on the transport of dangerous goodsby road (ADR), rail (RID) and inland waterway (ADNR) wereamended in 2005 to include new security provisions involvingforwarders, shippers, carriers and unloading operators. Theyare designed to ensure that all participants in the logisticschain are clearly identified, to secure transit zones (portterminals, vehicle depots, berths) by installing lighting andrestricting public access, and to train the personnelconcerned in security procedures. These regulations alsorequire operators to maintain an inventory of hazardousmaterials, to prepare a security plan and to install anti-theftsystems. We are actively involved in implementing these newprovisions.

Pipeline Transportation, Surveillance andEmergency Response Plans

Around the world, Total is involved in the operation of over23,000 kilometers of onshore pipelines that carry natural gas,oil, gasoline and chemicals. International statistics confirm theoutstanding safety of this type of transportation. Butaccidents can still occur, mainly as a result of accidentaldamage by third parties performing work with mechanicalshovels or farm machinery.

Drawing on lessons learned from the tragic accident in July2004 in Ghislenghien, Belgium, involving a gas pipelineoperated by another company, we launched a broad surveyof the operating conditions of our pipelines. The surveyidentified best practices at Total in terms of pipelinesurveillance (plane, car, on foot), work in the vicinity ofpipelines (prior notification by contractors, monitoring ofwork), and the preparation of response teams in the event ofan accident. This led to the drafting of Group SafetyGuideline: Pipeline Surveillance and Emergency Plans, issuedin late 2005, which provides for:

• Performance of a risk analysis and criticality rating ofpipeline components and sections to identify those most atrisk due to the environment through which the pipeline isrouted (for example, population density) or exposure to anexternal risk, such as a landslide.

• A surveillance plan with specific procedures for thesevulnerable sections.

• Specification of procedures for managing work performedby third parties in the vicinity of pipelines.

• An emergency plan regularly updated and tested by meansof exercises involving, as far as possible, externalemergency services.

The Benefits of Cooperation

To support its internal measures, Total is working inpartnership with other road safety stakeholders toincrease the effectiveness of initiatives.In 2005, we joined the Global Road Safety Partnership(GRSP), an international organization set up by the WorldBank that brings together public institutions, privatecompanies and NGOs to improve road safety in countriesthat are facing major challenges. All of Total’s subsidiariesin Africa, South America, Asia and Eastern Europe will beable to become involved in this partnership through localprojects that are already in progress or will be introducedin the future.

Rail Transportation Security in Germany

Total Deutschland has focused on the security of itshazardous materials transportation operations. Oursubsidiary invited all the main companies with which itworks to attend an annual conference on railtransportation security to review measures to preventsabotage and coordinate actions, such as securityexercises with the police, risk analysis, and formalidentification of responsibilities at interfaces, in particularduring loading and unloading operations.

• Pipeline surveillance by Total Infrastructures Gaz France (TIGF).

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005HEALTH

44

Health: Vigilance, Proactive Response and SupportTo protect the health of employees, neighbors and consumers,Total proactively identifies and analyzes risks and deploysmethodical prevention processes. In addition, we take part insupport programs alongside international associations andorganizations, like Institut Pasteur.

91% of Total companies deployprevention programs


45

Prevention Processes toProtect Health in the WorkplaceDeploying the Occupational Health andHygiene Guidelines

Our occupational health protection and risk preventionprocesses were strengthened in 2005, with a particularemphasis on assessing workplace risk. Published in 2004,our Occupational Health and Hygiene Guidelines define basicoccupational health principles, such as assessing, analyzingand managing risks and identifying hazards. They wereexpanded in 2005 with the introduction of more detailedoccupational risk assessment methods. The guidelines havebeen deployed across the businesses at pilot sites, where adedicated manager is responsible for implementation incoordination with other stakeholders, such as HSE networks,physicians, toxicologists, and health and hygiene managers.We are targeting deployment at 50% of sites presenting thehighest workplace risk within three years and at 75% withinfive years.Four cross-business Health & Safety training sessions wereoffered to operations managers, occupational physicians andHealth, Human Resources, Health & Safety and Environmentmanagers. They are designed to align management of healthissues related to our operations and products and, moregenerally, all health issues at Total.

Health Care Audits in 34 Countries

To ensure that employees have access to the best medicalcare, physicians from the International Medical Departmentregularly audit local medical organizations, especiallyemergency care systems. In 2005, audits were conducted in34 countries.

Global Tracking and Reporting ofOccupational Illnesses

As in 2004, operated units worldwide reported recordableoccupational illness (1) data last year. Performed by the HealthSafety and Environment (HSE) network, the annual survey closelytracks illnesses at the corporate and business levels.

Analysis of the findings enables the workplace health riskprevention techniques described above to be further improved.

(1) Recordable occupational illnesses: Not yet recognized by social insurance systems inthe countries concerned.

4

2

3

12

9

7

● Company physicians ● External physicians ● Company nurses ● External nurses ● Clinics

● Shared company centers, partnerships, medical centers

Non-OECDOECD

29%

39%

23%

3%3%3%

17%

35%

32%

12%

1%3%

Group companies may have a number of health care resources, broken down as indicatedabove in subsdiaries that took part in the Worldwide Human Resources Survey in 2005 (see page 79).

Health Care Audits by Region in 2005 ● Europe ● South America ● CIS

● Africa ● Middle East ● Asia

Health Care Resources at Group Companies

• Nurses at the La Mède refinery in southern France.

46


SPORT Initiative In 2005, the Strategic Partnership on REACH Testing (SPORT)ran trials to test and establish the workability of REACHregistration and evaluation processes. The partners are theEuropean Commission, the European Union chemical industry,including small and medium-sized businesses, and E.U.Member States.

Eight companies, including Arkema, took part in the trial, inwhich a selected substance or substance group underwentthe planned three stages of registration, evaluation andauthorization. Managed by the participants, the representativetrial was intended to improve understanding of REACH andidentify solutions where problems were found. It produced anumber of recommendations for the implementation ofREACH.

To learn more: www.sport-project.info.

Workplace Exposure to Benzene WellBelow Regulatory Thresholds

In summer 2004, we took part in a survey to determine thebenzene exposure of service station attendants, tank truck driversand pipeline installers in France. The findings were published inJuly 2005 by the French Union of Petroleum Industries (UFIP). In 80% of cases, there was no detectable exposure (less than0.02 ppm or 65 µg/cu.m. The remaining 20% were below theoccupational exposure limit of 1 ppm or 3,200 µg/cu.m. These figures confirm the measurements already taken forpetroleum depot workers and drivers who deliver home heating oil.

Health and EnvironmentalImpact of ProductsPreparing for Implementation of the E.U. REACH Regulation

In preparation for implementation of the European UnionRegulation concerning Registration, Evaluation and Authorizationof Chemicals (REACH) to improve the identification of theproperties of chemicals and the risks associated with their use,we continued to identify, register and evaluate the harmfulness ofall chemicals manufactured or used by Total. In the Chemicalsbusiness, this work is being conducted by the operationaldepartments. Around 700 substances have been identified, ofwhich three-quarters are in the Arkema portfolio. Once the regulation is published, we will evaluate theharmfulness of substances in cooperation with other leadingmanufacturers to enhance efficiency and reduce costs. Refining & Marketing is pursuing a similar action plan to registerall of its substances, in particular in the framework ofConservation of Clean Air and Water in Europe (CONCAWE), theEuropean oil companies’ organization for environment, healthand safety.

% Sick Days by Region (%)

Source: 2005 Worldwide Human Resources Survey (see page 79).This indicator only covers absences due to illness, surgery and convalescence.Some of the differences can be attributed to differences in counting and regulationsamong the countries that took part in the survey. For example, in some countries sickleave working days are not always counted or sick leave is no longer counted when thenational health insurance system begins paying benefits to the employee.

Region 2005 2004

Europe 3.6 3.1

Africa 1.1 1.4

North America 1.5 1.9

South America 0.9 1.0

Asia 1.1 1.2

Middle East 1.6 1.6

Group average (%) 2.9 2.8

Supporting Individual andCommunity HealthInfectious Diseases Corporate FundingAgreement with Institut Pasteur

In October 2005, Total and Institut Pasteur signed a corporatefunding agreement intended to strengthen the scientific andhuman resources allocated to the fight against infectiousdiseases, in particular sexually transmitted infections (STIs).Under the five-year agreement, Total will contribute €500,000 ayear to fund infectious disease research programs conducted byInstitut Pasteur’s multidisciplinary, international teams. InstitutPasteur will oversee and validate programs in certain non-OECDcountries to train medical and paramedical staff in theprevention, diagnosis and treatment of sexually transmittedinfections (STIs). We will spend some €10 million on researchand education initiatives through 2010.

The first project sponsored under the agreement is a partnershipbetween Total E&P Angola and Angolan NGO Centro de Appoioaos Jovens (CAJ), whose work includes testing for andpreventing STIs and supporting young people. Total’s backingwill enable CAJ to expand its awareness and educationalinitiatives for young people in the Luanda region and improve itsservices and diagnostic capabilities. It will also provide additionaleducational resources to train physicians, nurses and socialworkers and enable them to acquire specialized skills in testingand treating sexually transmitted infections, especially HIV/AIDS,in young people. The medical training will be validated andoverseen by Institut Pasteur in Paris and provided by Angolanand international experts, including instructors identified by thePasteur network.


47

Group Companies Involved in Prevention Programs (HIV/AIDS, smoking, hepatitis,meningitis, etc.)

Source: 2005 Worldwide Human Resources Survey (see page 79).

Percentage of respondent companies engaged in aprevention program related to individual and communityhealth issues. In Africa, prevention programs mainlycover HIV/AIDS, while in Europe they mainly cover fluvaccinations and cardiovascular disease. Many unitsregularly deploy prevention programs that address avariety of general health issues, such as stress,cardiovascular disease, epidemics including flu,smoking and alcoholism

Africa 97%

North America 88%

South America 100%

Asia 81%

Europe 91%

Total 91%

Long-Term Initiatives to Combat HIV/AIDS

In 2005, a large number of subsidiaries pursued their long-standing HIV/AIDScampaigns for employees and their families, especially in sub-Saharan Africa. Someare also financing prevention initiatives in neighboring communities.

Voluntary, Anonymous Workplace Testing at Total Burkina

As in most sub-Saharan countries, the incidence of HIV/AIDS in Burkina Faso is ofserious concern, with a reported adult prevalence rate of more than 4.2% in 2005.

Spurred by unsuccessful attempts to encourage voluntary employee testing inspecialized centers, Refining & Marketing Overseas subsidiary Total Burkina teamedup with Kasabati and other specialized associations in October 2004 to set up a voluntary, anonymous testing unit in the workplace. The tests are performed by a mobile team with the necessary equipment and results are provided to the peopleconcerned in complete confidentiality. Thanks to this initiative, the voluntary testingrate during two drives in 2005 rose to 55% from 20%.

Partnership with La Chaîne de l’Espoir for Iraqi Children

In November 2003, a funding agreement was signed with La Chaîne de l’Espoir toset up a program to develop health care infrastructure and improve the healthsituation in Iraq by providing equipment and training for medical personnel.Local conditions prevented implementation of the program, which then changeddirection to bring children with serious heart conditions to France for surgery thatcould not be performed in Iraq. Total has provided €500,000 in funding for the program, conducted in cooperationwith Première Urgence, an NGO based in Iraq. Ten children underwent surgery in2005, with 50 other children scheduled for help in 2006.

Avian Flu Contingency Plan

In 2004, we took proactive steps to deal with the threat of an avian flu pandemic,preventively purchasing equipment and drugs, in particular in non-OECD countries.We have also been encouraging our employees to get flu vaccinations to reduce thechance that the virus will mutate.

The main provisions in the event of human-to-human transmission focus oncontaining the spread of illness in the workplace, for example by limiting the numberof non-essential meetings, wearing masks and telecommuting, while maintaining theuninterrupted production of products necessary for our business. Site and subsidiarymanagers are expected to systematically contact the health authorities to learnabout their emergency plans and to identify key employees to ensure that operationscan continue safely.

We are in ongoing contact with the public authorities and the WHO to ensure thatwe are notified immediately of an epidemic, are familiar with emergency plans andcoordinate our response in line with them as quickly as possible.

• Total Gabon provides financial support to theFranceville Medical Research Center (CIRMF).

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005SOCIAL RESPONSIBILITY AND LOCAL DEVELOPMENT

Beyond our responsibilities as an energy provider, we are aware of our role as a top-tier global economicand social force. With tens of thousands of employees worldwide, we are committed to a humanresources policy that is based on fairness and rewards performance. We want to drive social progress inour host countries, within the framework of their legislation. We also aim to spur the development of localeconomies while ensuring that our operations and organizations benefit people and business in our hostenvironment.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005SOCIAL RESPONSIBILITY AND LOCAL DEVELOPMENT

Social Responsibility and Local Development

Social Responsibility: Feedback and Fairness Total’s human resources policy is focused on diversity, mobility,fairness and responsibility. We are committed to satisfying ouremployees’ personal development goals and to attracting andretaining the skills we need to meet the challenges of our growth,which is driven by major industrial projects. We rely on theinherent appeal of equal opportunity, assertive careermanagement, and fair compensation and benefits.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005SOCIAL RESPONSIBILITY

48

Roughly 9,000 people recruitedworldwide each year

Permanent contract hires by age bracket ● Women ● Men

Total men: 4,965

Total women: 1,916


49

Pointers: Human ResourcesManagement in 2005Extensive Recruitment

Total had a consolidated workforce of 112,877 on December31, 2005 (see page 79), up from 111,401 in 2004. With6,881 permanent contract hires in 2005—8,628 for themanaged scope—of which three-quarters outside France, weare a major recruiter. Each year, Total also offers more than4,000 internships and 120 VIE/VIS co-op placementsworldwide, as well as 800 work-study contracts in France.

Lifelong Career Management

A Constant Focus on Integrating New Hires

We are renewing our workforce by focusing our recruiting onapplicants under 35. In 2005, they accounted for 71% of ourpermanent contract hires worldwide. We pay special attentionto the integration of young new hires, notably throughseminars, both in France and other countries (see page 57).

Some subsidiaries are also introducing mentoring programsto facilitate the integration of younger hires. The closerelationship between mentors and mentees helps newemployees to better understand the organization and enablesthem to tap the wealth of experience and know-howavailable. Although not its purpose, mentoring can also be anexcellent tool for making the workforce more international, bymaking it easier to identify high potentials who are suited tocareers as expatriates.

In 2005, subsidiary Elf Petroleum Nigeria Ltd (EPNL) adopteda pioneering mentoring program, the first at Total to involveevery new hire. EPNL recruited a total of 332 people between2001 and 2004, and is poised to hire 80 a year between2005 and 2008 to support major oil and gas developmentprojects. The program includes goal setting and tracking,regular meetings and quarterly assessments and employsquantitative and qualitative data and a guide questionnaire totrack progress. Mentoring lasts three to four months forexperienced hires, and up to six to 12 months for everyoneelse.

17%

25%

18%

8%

12%

18%2%

Permanent contract hires as a percentage of the workforce by region

● France ● Europe (excl. France) ● Africa ● North America

● South America ● Asia ● Rest of the World

Increasing Gender Diversity

Total received nearly 400,000 applications in 2005,approximately half through its Careers recruitment Web site. Twenty-seven percent of applicants werewomen.

Worldwide, women accounted for 30% of Total’s hires in2005 (managed scope, see page 79), while 26.6% of themanagers hired under permanent contracts were women,up from 24.5% in 2004. In France, the figure was 32%,versus 26% in 2004, an improvement that reflects ourinitiatives to promote gender diversity (see page 56).

Source: 2005 Global Workforce Analysis, consolidated scope (see page 79).


<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60+0

500

750

250

1,250

1,000

1,500

1,750

2,000

50

Updating and Expanding the Skills of Senior Employees

With nearly 26% of our employees aged 50 or older, seniorsaccount for a significant percentage of our workforce. Mobilityand training provide them with opportunities to continueupdating their knowledge and expanding their skill set. A prime tool for expressing our diversity, training is offered toemployees of all ages, giving them an opportunity to sharetheir technical experience and discuss Total’s strategicchallenges and values.

We also provide dedicated training for experiencedmanagers. One example is the Managing Experience seminar,designed for senior managers with more than 20 years ofprofessional experience. It deals with global economic andgeopolitical change, our strategy for tackling new challenges,different management styles, the expectations of youngergenerations, innovation, and human resources andmanagement issues at Total.

It will be supplemented in 2006 by a new course, createdespecially for experienced older middle managers. A numberof new people management challenges will be covered,including intergenerational and cross-cultural issues, newmanagement methods, the impact of new technologies onworking relationships, and the new competitive environment.

Facilitating Mobility By Tracking Employee CareerPaths

Total has a shared set of career management resources, such as annual performance reviews and management jobevaluations using the Hay method, which standardizeprocedures for tracking employee career paths across theorganization.

According to the Worldwide Human Resources Survey (see page 79), 99.5% of managers and 96% of non-managers work in units that conduct annual performance reviews.

Managers change positions an average of once every fouryears, via job or geographic mobility. A growing number ofexpatriate positions are open to non-French employees (seepage 57). At end-2005, Total had 3,399 expatriates of 87different nationalities on assignment in 108 countries.



Managers Non-managers

Under 3 years 45% 36%

3 to 5 years 29% 23%

6 to 8 years 11% 12%

Over 8 years 15% 29%

86.4%

36.7%

6.6%

29.0%

3.7%8.8%

3.3%

25.5%

Africa North & SouthAmerica

Asia-Middle East

International mobility in 2005

● Home region of expatriates ● Host region of expatriates

Europe

Employees by age bracket, worldwide

● Women ● Men

<25 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+ 0

12,000

6,000

3,000

9,000

15,000

Total men: 82,549

Total women: 30,328

Total expatriates: 3,399


Average length of time in a job in 2005

The average length of time in a job is around four years formanagers and five years for non-managers, broken down asfollows:

51


Average number of training days per employee in 2005


2005 2004

Employees Total training days Employees Total training days

Managers 24% 29% 24% 27%

Non-managers 76% 71% 76% 73%

Men 73% 79% 74% 80%

Women 27% 21% 26% 20%

Training days by manager/non-manager and gender, 2005 versus 2004

An Extensive Training Program

Over the last several years, Total has deployed an extensive training program toupgrade employee skills and knowledge and adapt them to changes in the internaland external environments. The average number of training days per employee in2005 was 4.6, compared with 4.0 the previous year. The breakdown by region is 3.9days in Europe, 4.2 days in North America, 5.5 days in South America, 5.7 days inthe Middle East, 6.6 days in Asia, and 10 days in Africa.

In 2005, 30% of training days at Total were devoted to upgrading the technical skillsrelated to our professional disciplines, 21% to safety, 12% to language courses and37% to more general topics, such as management, ethics and cross-culturalawareness. Approximately €160 million was spent on training in 2005, virtuallyunchanged from 2004.

Upstream 8.7

Downstream 5.1

Chemicals 3.1

Holding company 3.2

Group average 4.6


• Subsidiaries across the Group continued to provide training in 2005. The average numberof training days per employee was 4.6, compared with 4.0 the previous year.


52

Growing Employee Stock Ownership

Subsequent to employee share issues and purchases of Totalstock for participants in our employee savings plans, nearly80,000 employees held an aggregate 3.35% of Total’s sharecapital on December 31, 2005.

To further increase employee share ownership, in November2005 the Board of Directors approved a new employee shareissue. Carried out in February 2006, it was open to allemployees of Total S.A. and of French and foreignsubsidiaries owned at least 50% by Total, provided that theywere members of an Employee Stock Ownership Plan(ESOP). The shares were issued simultaneously in all hostcountries whose legal and administrative requirementsallowed this type of transaction.

At March 31, 2006, employees held 3.75% of our sharecapital.

Employee Satisfaction Survey: Input from More than 43,000 Employeesin 38 Countries

Introduced in 2000, the employee satisfaction surveybecame an annual event in 2003. In November 2005, 43,219 employees were surveyed at 136 facilities in 38 countries. The response rate was stable at 50%.

The survey findings indicate that 75% of the respondentsare very satisfied or fairly satisfied with their job. Theyespecially like its content (80%), their working conditions(79%), benefits (70%) and their work/life balance (68%).Participants also expressed their wish to enhance theirskills and to benefit from career management resourcestailored to their individual circumstances. (Source: Ipsos)

The Total Corporate University: Open tothe World, Focused on the Future

The Total Corporate University was created in 2005 toprovide a forum for analysis and discussion on issuesaffecting the future of our businesses and to enhanceTotal’s social and technological image, as illustrated bythe following initiatives.

• In November 2005, 20 senior executives attended aweek-long seminar at the Massachusetts Institute ofTechnology (MIT) on key issues such as the future ofenergy, climate change and geopolitics.

• In 2006, we will be introducing the Total SummerSchool, where 50 students from around the world willlearn more about current energy issues and the oiland gas businesses from experts from Total andoutside. The Summer School is being launched inliaison with 10 subsidiaries, which identify and selectstudents. The 2006 participants will be from Europe,Nigeria, Angola, Indonesia and the United-States.

The corporate university also federates a variety ofmanagement courses and many of the orientationprograms that introduce new employees to Total andour businesses. In 2006, a new internal seminar will berolled out to foster awareness of the ethical,environmental and community responsibilities of Totaland our subsidiaries. The program will be tailored tolocal environments and implemented internationally.


53

In 2005, 88.7% of the 101 subsidiaries surveyed in theWorldwide Human Resources Survey (1) had some type offormal employee representation. A total of 191 collectiveagreements were signed, 140 in Europe, 23 in Africa, eight in North America, four in South America and 16 in Asia.

Enhancing Employee Dialogue in Europeand Worldwide

A Broader Mandate for the European Works Council

Dedicated to informing and maintaining a dialogue withEuropean employee representatives, the European WorksCouncil covers all European Union countries in which weoperate, plus Norway. Under an agreement between seniormanagement and employee representation organizations in June2005, it was renewed for a period of four years.

The extended agreement introduces significant advances, for instance creating a Sustainable Development, CorporateSocial Responsibility and Safety Committee with 19 membersfrom 14 countries. The Committee will review the CorporateSocial Responsibility Report 2005 and will be able to discuss its content.

The agreement also makes alternate members eligible for legal,economic and employee relations training formerly reserved forregular members, to improve their knowledge of the Group andteach them about employee representation practices in thevarious countries represented on the Committee. In anotherinnovation, regular members can now undergo training onEuropean Works Council procedures, provided by EuropeanUnion organizations.

The European Employee Relations Forum, a New Springboard for Progress

With nearly 70% of our employees based in Europe, anagreement was signed in late 2004 with European labororganizations to create an employee relations forum. Theareas covered include expanded employee dialogue, dialogueand negotiation with employee representatives, jobs and skillsplanning, and the appropriate principles and actions to takewhen developments in the company affect jobs.

Fundamental Employee RelationsPrinciples

With operations in 130 countries, Total is committed torespecting fundamental employee relations principles, inline with the diversity of local situations. We uphold theprinciples of the 1948 Universal Declaration of HumanRights, the International Labour Organization’sFundamental Conventions, the OECD Guidelines forMultinational Enterprises and the principles of the UnitedNations Global Compact.

We are committed to respecting and promoting thefollowing principles within our sphere of influence:

• The abolition of child labor.

• The elimination of forced and compulsory labor.

• Freedom of association and the right to collectivebargaining.

• The elimination of discrimination in the workplace.

• Fair compensation and social safety net.

• Upholding human rights.

Promoting Employee Dialogue and FairnessOur human resources policy is based on progress and innovative employee relations, built on dialogue with employees andtheir representatives. Although our human resources practices around the world reflect the diversity of social, cultural andlegal environments in our host countries, they are strongly rooted in Europe.

In 2005, this initiative paved the way for a Europe-wideagreement on equal opportunity (see page 56). In early 2006,it is expected to help spur negotiations concerningintrapreneurship and support for companies that will allow ourEuropean units to benefit from the experience and practicesalready implemented in France in both areas.

In line with the commitments made, an initial preliminaryreport was presented to the European Works Council inNovember 2005, reviewing the initiatives deployed by variousunits in each of the areas covered by the agreement.

(1) See page 79.

Fair, Rewarding Compensation and SocialSafety Net

Salaries That Reward Performance

Our total compensation policy aims to compensateemployees fairly and reward them, while incorporating localfactors such as labor legislation, the economic environmentand the job market. In some cases, Total may employcompany performance incentives, such as profit-sharing, orsupplement base salaries to reward personal performancethrough bonuses, variable compensation or stock options.

2005 was the first year in which we granted stock withoutconsideration at the same time as stock options, asauthorized by France’s 2005 Finance Act. Implemented bythe Board of Directors after being approved at the May 17,2005 Annual Shareholders’ Meeting, the new programconcerned 7,300 employees, 3,000 more than for previousstock option programs. All businesses were eligible, andstock was awarded to approximately 2,170 employees in theUpstream, 2,100 in the Downstream, 2,300 in Chemicals,and 400 in the holding company and Trading.


54

Labor Disputes and Negotiations in France

To improve health care for the dependent elderly and thedisabled, France’s Act of June 30, 2004 called for employeesto show solidarity by working an extra day to provideadditional revenue for the “welfare” branch of France’snational health insurance system. Cancellation of thePentecost Monday holiday in line with the act createdtensions between employers and employees in both thepublic and private sectors. At Total, workers shut down ourrefineries for several days in May 2005. Following the strike,management and unions reached an agreement whereby theholiday was maintained in 2005.

Two other disputes, involving pay category demands, arose inour Provence and Normandy refineries in the fall.

The issue of compensation was favorably resolved when alllabor organizations for Total’s Oil business in France,representing over 16,500 workers, signed a salary agreementfor 2006. A number of other salary agreements were alsosigned at our other companies in France.

Expanding Employee Dialogue in Non-OECD Countries

Total is committed to promoting employee dialogue in all ofour host countries, in line with local legislation. When asubsidiary’s workforce becomes too large for informalemployee-management relations to be effective, we help it tocreate appropriate representative organizations.

Indonesia is a case in point. In a country where for manyyears the only legal union was Korpri, ILO Conventions Nos.87 and 98 guaranteeing freedom of association andprotection of the right to organize and engage in collectivebargaining were ratified in 1998. The management of TotalE&P Indonesia responded by encouraging the creation oforganizations dedicated to employee dialogue and themanagement of social, cultural and sports activities, electedby a ballot of all employees.

The company funds social, cultural and sports activities, butis forbidden by law from financing the union, SPNTI. However,Total E&P Indonesia provides SPNTI with the space andfacilities it needs to operate and has authorized five hours amonth of meetings during working hours. Management andSNPTI meet quarterly and negotiate a collective agreementevery two years, to achieve the common goal of “fosteringharmony to improve company productivity and employeewell-being.”

• Since Indonesia ratified ILO Conventions Nos. 87 and98, Total E&P Indonesia has encouraged the creation oforganizations dedicated to employee dialogue.

Gérard Mathevet

Vice President, Human Resources Refining & Marketing, Overseas (1)

“In most of our host countries, especially in Africa, localpension systems are often inadequate, either becauseasset yields are too low or because they are based onweak currencies. Some countries don’t even havepension systems.

As part of Total’s general policy, we decided to introducea supplementary retirement plan that will eventuallyextend to around 40 subsidiaries and nearly 4,000 people.Deployment began in 2005 after a lengthy, complexdesign phase. We wanted the plan to be international totake into account the diversity of the subsidiariesconcerned and offer maximum protection in the event ofa fall in value of the plan assets.

We also have to take into account tax laws in all of thecountries concerned. The solution we came up with is adefined contribution plan aimed at providing a lifetimeannuity on retirement.”

Broader Insurance Plans

Total strives to offer all employees the same type of benefits,where local economic and labor environments allow, througha policy of expanding the social safety net and employeesavings.

Our goal is to provide every employee with an insurancepolicy with death benefits equal to at least 200% of theirannual gross salary, or a level consistent with local livingstandards. At end-2005, 73% of employees had suchcoverage, against 70% at end-2004.

A number of companies in France, Spain, Hungary, Italy,Portugal and Refining & Marketing Overseas (1) subsidiariesupgraded their insurance programs to bring them in line withthe Group standard.

A Considered Early Retirement Policy

Total reserves early retirement for employees with unusuallyarduous working conditions or situations in which economicsforces the issue, especially in France, subsequent to theAugust 2003 Fillon reform.

We are therefore looking for new ways to adjust our agepyramid. In France, implementation of the national retirementreform, introduced in 2004, continued in 2005. Total hasdeveloped benefits to top up the ones created by thePetroleum Industry National Collective Agreement (CCNIP) foremployees aged 55 to 60 who decide to buy back quarterlycontributions so that they can retire at 60.


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(1) Includes Africa, the Middle East, the Caribbean, the Indian Ocean and the Pacific, or60 countries and overseas departments and territories.

We offer them interest-free loans for that purpose, matchedby a supplementary retirement benefit. Buybacks must takeplace no later than December 31, 2008 to be valid.

Most of our large subsidiaries outside France have a localretirement plan, which may be a basic national and/orsupplementary plan, based on an annuity or lump sum.Where the local situation allows, we prefer that new plans bedefined contribution plans.

Deployment of a Supplementary Retirement Plan inR&M Overseas Subsidiaries

Personal Compensation Report forEmployees of the Main Oil & GasCompanies in France

Nearly 13,000 Total employees working in France receiveda personal compensation report in 2005. It summarizestheir personal direct compensation and benefits, includinggross salary, profit-sharing, performance-based bonuses,retirement, insurance and employee savings.

The employee satisfaction survey conducted in 2004 foundthat only 40% of respondents felt that compensation ruleswere clear. The publication of these reports is the first steptoward greater transparency, by providing a completerecord of every aspect of employee compensation.

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Encouraging EqualOpportunity and DiversityTotal launched a policy to promote diversity in theworkforce several years ago, by leveraging differencesand combating discrimination. As part of our diversityprocess, in 2005 we signed a Europe-wide agreement onequal opportunity that introduces diversity indicators andtargets.

A Europe-Wide Equal OpportunityAgreement

Total signed France’s Diversity Charter in 2004, along witharound 40 other French companies, reflecting ourcommitment to combating all forms of discrimination, whether based on ethnic origin, age, gender, religious beliefs or sexual orientation.

We broadened our focus to encompass our Europeanoperations in 2005, when we signed an equal opportunityagreement with European federations through the Europeanemployee relations forum created in 2004. The agreementprovides new resources to guarantee even greater equality ofopportunity, especially for women and the disabled, inrecruitment, training, career development, mobility,compensation and work/life balance. A working group will beset up in 2006 to monitor gender inequality in compensation.

A scorecard is being developed for European employees foruse in preparing an annual report on equal opportunity atTotal that will be reviewed by the European Works Council.


Encouraging Employment for the Disabled

The 2005 Europe-wide equal opportunity agreementconsolidates our commitment to encourage the hiring andtraining of the disabled. Actions involving associations willpromote hiring the disabled, while internal awarenesscampaigns for managers will be conducted in-house.Innovative initiatives in subsidiaries will be brought to theattention of the European Works Council.

There are also plans in 2006 to begin talks in France toidentify ways to enhance the integration of the disabled atwork. The talks will leverage experience stemming fromrelevant collective agreements that have already beensigned by the Upstream and Downstream businesses.

Supporting External Initiatives to IntegrateVisible Minorities

In addition to non-discrimination on the basis of ethnicorigin when recruiting, we actively support variousinitiatives on behalf of visible minorities that are designedto prevent young graduates from being shut out of the jobmarket because of their surname, nationality or origin.

In France, we are partners in programs implemented bythe Employment and Diversity Unit of IMS-Entreprendrepour la Cité and by the Association pour Faciliterl’Insertion Professionnelle des Jeunes Diplômés (AFIJ). Total forwards all job offers for positions requiring two to five years of post-secondary education to theseassociations and receives applications in return. We alsotake part in dedicated Employment Diversity job forumsfor recent graduates from visible minorities. In 2005, we attended three such job fairs, meeting nearly 200applicants, of whom four have since been hired under a permanent contract.

As in 2004, 25% of our hires in Paris were of non-Frenchnationality or cultural origin.

Percentage of non-French nationals in management, 2005 versus 2004

● Non-French managers ● All managers

2005

27,175

14,730(56%)

2004

26,229

15,3887(57%)

Source: 2005 Global Workforce Analysis (see page 79).

• A visual from Total’s recruitmentcampaign.“Do I look like a quota to you?”


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Making Management More International

Given the percentage of non-French nationals in ourmanagement ranks and the strong international reach of ourbusinesses, Total still has too few non-French seniorexecutives.

For example, in Exploration & Production the workforce is57% non-French, of which only 7% are senior executives.The most common reason for this imbalance seems to belimited knowledge of the potential of local managers workingin subsidiaries. We are therefore standardizing humanresources practices concerning recruitment, annualperformance reviews, job levels and high-potential selectioncriteria, so that employees have equal opportunity to developtheir skills anywhere in the world.

Real-World Expatriation and Training Measures

A growing number of non-French nationals are being offeredexpatriate positions to gain the skills they need for seniorexecutive positions. In 2005, 1,150 of Total’s roughly 3,400expatriates worldwide were non-French nationals. It is a verydeliberate policy within the Exploration & Production business,where the number of non-French expatriates doubled from 200to 400 between 2001 and 2005, with a target of 700 in 2010.

Training is another vehicle for becoming more international, byenrolling more non-French nationals in international seminars anddecentralizing certain courses in subsidiaries or regions. In 2005,Exploration & Production held its first international orientationseminar, welcoming more than 100 new hires of 18 differentnationalities. Total also introduced a new traveling orientationseminar, Discover the Group, held in a specific country for all newhires in the region. Five sessions with 40 to 80 participants eachwere held in 2005.

INDICATOR 2004 2006 2010

% Women % Non- % Women % Non- % Women % Non-French French French

Recruitment 24 * 26 - 33 -

Managers (JL 10+) (1) 18 57 19 57 25 60

Managers (JL 15+) 8 21 9 23 12 33

High potentials 15 34 16 38 25 45

Senior executives 6 19 7 20 12 25

Management training 12 37 20 38 25 40

Management Committees (2) 8 38 9 40 12 50

Management Committees (3) 51 74 60 80 95 95

Diversity Indicators and Objectives

The Europe-wide equal opportunity agreement is based on the recommendations made by the Diversity Council—created in 2004—and approved by the Executive Committee in January 2005. The Diversity Council also defined tracking indicators and 2006 and 2010objectives for increasing the number of women and non-French employees.

Since most of Total’s growth is occurring outside France, there was no need to set a hiring target for non-French nationals. We recruit 66% of our managers outside France, with hires in 106 different countries in 2005. In France, 17% of the managershired in the Oil business by headquarters were non-French, of 28 different nationalities.

In the area of increasing the number of women at Total, an aggregate recruitment target by country and business is beingdeveloped to facilitate the access of women to technical and scientific positions. We also hope to double the proportion of womenin management positions in the near term.

(1) JL = Job level based on Hay point equivalent.(2) % of women and non-French nationals on committees.(3) % of committees with at least one woman or non-French member.

* Data not available.


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Supporting EmployeesAffected by RestructuringArkema S.A.

The 2004 Restructuring of Our Chemicals Business

Total reorganized the Chemicals business in 2004 to simplifya highly diversified portfolio of operations. We transferred allpetrochemical activities to Total Petrochemicals, gaveSpecialties operational independence, and combined VinylProducts, Industrial Chemicals and Performance Products tocreate Arkema. During the information and consultationprocess leading up to the restructuring, a decision was madeto spin off Arkema (see page 21). In preparation for that step,Arkema continued restructuring its operations in 2005 toensure long-term competitiveness, regardless of markettrends.

In 2005, a plan to consolidate Arkema’s Vinyl Productsoperations was announced. It called for expanding the mostefficient units and closing structurally loss-making operations.As a result, 523 jobs were eliminated in France: 30 at theBalan plant, 51 at the Jarrie plant, 355 at the Saint-Aubanplant, 76 at the Saint-Fons plant and 11 at corporateheadquarters.

Transfers, Support and Voluntary Early Retirement

Transfers, support from Arkema and Total, and voluntary earlyretirement plans funded by the company were the employeesupport measures of choice, decided on the basis ofdiscussions with employee representatives.

A voluntary early retirement agreement was signed by alllabor organizations on June 2, 2005. As many as 346 peoplecould be eligible, representing two-thirds of the jobseliminated. Departures will be staggered through December31, 2006 at all affected sites, except Saint-Auban, where thedeadline has been pushed back to December 31, 2007.

Transfers within the Group are being handled by the RegionalMobility and Job Organization (ORME) network, which lists allavailable openings of potential interest to employees seekingnew jobs, with the help of regional coordinators.

Implementation and Initial Results

Coordinated and supervised by a central unit at Arkemacorporate headquarters, Job Mobility Centers were set up ataffected companies.

At December 31, 2005, 140 applications for job transfers toother Total units had been approved or were being examined.Almost 20% of the internal transfers approved involve newjobs outside Arkema, notably at the La Mède and Feyzinrefineries.

More than two-thirds of the jobs lost were eliminated at theSaint-Auban plant (see page 67), which commissioned anoutside consultant to identify employee skills, provide supportfor job or regional transfers and offer assistance in findingnew jobs for spouses.

At December 31, 2005, 207 Saint-Auban employees hadopted for voluntary early retirement, 72 had been approved orwere being considered for internal transfers, and 48 hadvoluntarily resigned.

Our support for employees, which includes measures tomake it easier for them to retire early or leave to pursuepersonal projects such as starting a business or changingcareers, should help everyone find solutions suited to theirindividual needs and prevent layoffs.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005LOCAL DEVELOPMENT

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Local DevelopmentTotal is increasingly active in non-OECD countries, especiallythrough our Exploration & Production and Refining & Marketingoperations. We are committed to contributing to the economicand social development of the countries by leveraging threedrivers: promoting oil revenue transparency, integrating ouroperations into the local economy through local content andhiring, and developing socioeconomic programs in partnershipwith local stakeholders. We are also contributing to growth inOECD countries, in particular by supporting companies in ourhost regions.

Nearly 80% of our communityspending is committed outside the OECD


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International FinancialTransparency Initiatives

Total has supported the ExtractiveIndustries Transparency Initiative (EITI)since it was introduced in 2002 to bringtogether representatives ofgovernments, oil, gas and miningcompanies, international financialinstitutions, investor associations, non-governmental organizations andindustry organizations. Under the EITI,disclosure of payments is subject tothe agreement of host countries.

Since transparency cannot be achievedwithout a voluntary commitment by thecountries involved, we feel that the EITIapproach is the most realistic. To learnmore: www.eitransparency.org.

The Publish What You Pay campaigntakes a somewhat different approach:it wants all oil, gas and miningcompanies to disclose what they payto host countries.

Launched in 2002, it is supported by abroad coalition of NGOs(www.publishwhatyoupay.org).

Type

Income and production taxes:€10.3 billion in 2005 (1)

Local content (2)

Local jobs20,595 employees2,267 new hires in 2005

Community spending: €73 million in 2005

Main Beneficiariesataires

Host countries

Local industrial partners,contractors, manufacturers

Host country nationalsContractors

Local communities

Challenges

Oil and gas revenue transparencyand governance

Local industrial developmentSupport for local employment

Support for local jobsMore non-French managers insubsidiaries

Local socioeconomicdevelopment

Total’s position and actions

Commitment to oil revenuemanagement transparency:participation in the EITI

Growing local contentSkills transfer programs

RecruitmentTrainingSkills transfer programs

Partnerships with developmentspecialists, institutions and localcommunities

Contributing to Sustainable Development in Non-OECD CountriesMain Local Sustainable Development Contributions in Non-OECD Countries

Promoting Transparent Oil Revenue Management

Total is committed to enhancing oil revenue management in host countries, since67% of our production operations are located in non-OECD countries. That’s whywe have supported the Extractive Industries Transparency Initiative (EITI) since it waslaunched in 2002.

We believe that we have a duty to promote the EITI to host countries and to providetechnical support as they work to develop processes to enhance transparency. Aspart of this commitment, managers in subsidiaries and at headquarters in Paris arein contact with host country and EITI representatives. In 2005, we stepped up thedistribution across Exploration & Production’s subsidiaries of resources andrecommendations based on experience and of the EITI Source Book.

In 2006, fact sheets will be posted on www.total.com to provide the public with avariety of information on our exploration and production operations in certaincountries. In addition, country-by-country information on our oil and gas productionoperations is published each year in the Factbook, which can be downloaded fromthe Web site.

(1) Current tax liability (corporate income tax, taxes paid to Middle East oil-producing countries for the portion which Totalheld historically as concessions, and production taxes), as booked.

(2) We are not yet able to provide an accurate assessment of local content in non-OECD countries for the Group as a whole.

Our institutional, industrial and socioeconomic contributions to host country development are conducted in close cooperation with leading local development stakeholders, such as governments, local authorities, neighboring communities, and non-governmental organizations.

Definition of Local Content

Local content primarily reflects thegoods and services purchasedlocally as part of our investmentprojects and operations. During theconstruction phase of a new oilproject, local content cancorrespond to the percentage ofinstallations built locally.

Local content is often measured bythe number of hours worked by localemployees or the percentage oflocal spending.

In many cases, it also encompassestraining and skills transfer initiativesthat remedy weaknesses orshortcomings, enabling us to meettargets concerning the use of localindustrial facilities and humanresources.

We also contribute to thesocioeconomic development of hostcommunities by setting upcommunity programs and initiativesin the areas around our operations(see page 62).

Increasing Local Content in Our Operations andInvestments

To ensure that large projects deliver maximum economic benefits, many hostcountries implement local content policies that promote the use of local human andindustrial resources. In the oil industry, these policies are increasingly reflected incontractual obligations that require oil companies to spend a specific percentage oftheir total project investment in the host country, often with very assertive contentand deadline objectives.

Total supports local content policies, even though they may entail an extra cost,which is often the case when purchasing very complex equipment locally. Success,however, takes a serious commitment, and to meet our local content objectiveswithout relaxing our industrial, social and environmental standards, we take aproactive approach and form partnerships with local authorities, suppliers andcontractors.

A Formal Process

In addition to preparing each new project, we also apply a big-picture approach atcorporate level to enhance the social and economic integration of our operationsand promote sustainable, shared economic development. E&P set up a workinggroup in late 2004 to identify existing practices in countries such as Indonesia, Iran,Angola and Nigeria.

Their work showed it was necessary to develop thorough knowledge of the localindustrial base and human resources through a comprehensive inventory of suchthings as legislation, available human and technical skills, ability to respond totenders, and local expectations. This type of inventory enables us to anticipate thetraining and skills transfer programs that we’ll need to set up. The working group isnow working on introducing formal, written resources to assist deployment, such aschecklists, guidelines, manuals, and communication tools, and on expanding thesharing of experience in this area.

OlubumniObembe

General ManagerSupply Chain, ElfPetroleum Nigeria Ltd(EPNL), andCoordinator of LocalContent Strategy inNigeria

Local Content, Commitment and Method

“We’ve been working on local content for a number of years, and existing government guidelinesare encouraging us to take things to a new level. Thanks to close cooperation with national oilcompany NNPC and the experience acquired on earlier projects such as Odudu in 1992, Ofon in1996 and Akogep I in 2003, we can further increase the Nigerian content of our projects and stillmeet the technical and sustainable development requirements of local communities.

A good example is the Usan field development project, where our local content target is toexceed all previous projects—even though it’s a deepwater development that requires proficiencyin complex technologies and extensive industrial resources. The project is currently in the basicengineering phase, and a consortium of local companies partnered with an internationalcontractor is in charge of the technical feasibility study.

For the infrastructure construction phase, our target is that Nigerians—Total and contractoremployees combined—will account for 54% of the total hours worked. That’s an ambitiousobjective that entails involving contractors as far upstream as possible and conducting detailedpreliminary evaluations, item by item, of what can be manufactured in Nigeria. For example, wethink that local content will account for 39% of the hours worked to build the floating productionstorage and offloading vessel (FPSO) and 51% to build the topsides. We also use the pre-implementation review to determine how the project can make the biggest contribution todeveloping industrial capabilities and local skills, through training.”


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Deploying Our Community InvolvementProcess through Partnership

Our operations often have a significant impact on hostregions and generate huge financial flows that arouse highexpectations for jobs, local economic development andimproved living standards.

Our community programs are designed not only to meetthese expectations, but also to help eradicate poverty andachieve the United Nations’ Millennium Development Goals.That’s why our community relations commitment is based onforming partnerships, so that the projects that we support arealways defined and managed by local authorities, the peopleconcerned and local associations.

This clear separation of roles helps to enhance the credibilityand sustainability of our socioeconomic and health programs,which are the prerogative of host countries. It also guaranteesthe success of projects that require both technical capabilitiesand familiarity with local cultures, customs and expectationsthat we do not necessarily have.

In addition, projects embraced by local stakeholders are morelikely to succeed and less likely to be dependent on ourcontinued presence.

Our Action Principles

The Local Community Guide is a methodological summaryfor subsidiary managers. It describes the six actionprinciples of our community initiatives:

• Analyzing and understanding the local context in hostcountries.

• Fostering dialogue with stakeholders.

• Enhancing the positive impact of our activities andminimizing their negative impact.

• Fostering economic and social development forneighboring communities, with an emphasis onpartnership.

• Developing local skills and expertise to independentlymanage and sustain the development initiatives wesupport.

• Assessing our community initiatives and reporting to ourstakeholders.

Community spending by area in non-OECD countries

● Citizenship & Local culture ● Institutional development● Health care ● Education & Youth initiatives

● Training & Skills development ● Local economic development

10%

23%

23%

8%6%

30%

Community Spending

In 2005, our total community spending grew to €92.3 millionfor more than 2,500 identified initiatives, compared with€81.9 million in 2004. The increase partly reflects the furtherimprovement in the reporting scope and system during theyear.

Programs in non-OECD countries accounted for 79% of totalcommunity spending, or €73 million, up from the previousyear’s €66.8 million.

Spending on health care programs also rose significantly in2005, in particular due to the partnership agreement signedwith Institut Pasteur (see page 46). Lastly, our commitment toeducation, training and skills development continued at highlevels, accounting for more than 50% of our communityspending outside the OECD.

To make our processes more professional and obtain aclearer picture of their quality, new indicators are beingdefined to assess community projects.

• Farmers taking a course at the Gabonese Development Support Institute, set up in 1992 in cooperation with the government and NGO Agrisud.

Balakrishnan Vijay Kumar

Managing Director, Premier LP Gas Ltd., Bangladesh

“A process to provide structure”

In September 2005, you introduced SRM+ at your LPGterminal in Chittagong, which includes an LPG bottlingplant and a 1.8-kilometer pipeline from the coast to theplant. How did it help?

Our facility is located near the fishing village of Kumira,and relations have sometimes been strained, for exampleduring pipeline construction. We’d already worked toimprove dialogue, for example by teaming up withneighbors to ensure the security of equipment.

But we needed a more objective process that wouldprovide more structure. Students in the region usedSRM+ to conduct a survey, which allowed us to prepare alist of expectations concerning our facility and a realisticaction plan in line with our resources. People have a lotof high expectations, but we can’t do everything at once.

We identified four priority expectations: information onproduct and site safety and firefighting, our contributionto local economic development, support for educationthrough scholarships and internships, and improvedhealth care and access to drinking water.

Using this as our foundation, we developed an actionplan that will be implemented in 2006. To enhancedialogue and information, particularly about safety, we’llbe holding site tours and offering safety trainingprograms with the fire department. In the longer term, wehope to contribute more actively to local economicdevelopment through skills transfer programs. And we’replanning to introduce a scholarship and internshipprogram.

More Professional Community Involvement

Following the publication in 2004 of the Local CommunityGuide, in 2005 further initiatives were pursued toprofessionalize our community involvement.

For instance, training programs are being developed toaddress community issues. In addition to presenting theseissues in an increasing number of seminars, we are alsointroducing dedicated resources, such our Ethical,Environmental and Social Responsibilities seminar launched in2005 and the awareness campaigns that support thedistribution of the Local Community Guide.

In 2005, the focus was mapping stakeholders around ourindustrial facilities. As part of this process, we developed andtested the SRM+ (Stakeholder Relationship Management+)methodology, the operational version of the guide, at around20 pilot sites across our businesses.

Subsidiary and unit managers can use SRM+ to accuratelyidentify and rank local stakeholders and their expectations.They will use the resultant map to define action plans that arealigned with local expectations. In addition to making ourprocesses more professional, the methodology provides uswith a more objective, outside view of what we’re doing. This allows us to identify any discrepancy between ourperceptions and those of stakeholders—who includeemployees, neighbors, local authorities and NGOs—and toremedy them when necessary. SRM+ also supports ongoing,constructive dialogue with our neighbors. Tests demonstratedthat it is efficient, flexible and can be adapted to a wide arrayof very different social environments, especially importantgiven Total’s international reach and diversity of locations. As a result, we will be deploying SRM+ at all of our siteswhere enhanced community dialogue is critical.

SRM+ Method

The following flow chart shows how SRM+ is deployed at a site.

Site BaselineSelf-assessment of community impacts:

stakeholder relationships and community action plans.Definition of improvement objectives.

Stakeholder and Priority MappingSurvey of stakeholders by outside parties.Ranking of stakeholders and expectations.

Action PlanDefinition of actions in line with stakeholder priorities.

Development of best practices for dialogue.


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Postgraduate Scholarship Program

The postgraduate scholarship program for students from hostcountries was expanded in 2005. By enabling participants tostudy in France, the program helps to forge lasting ties withfuture local leaders by enhancing their awareness of Frenchand European culture and to provide educational support.Since 2002, more than 100 students have taken part in theprogram: around 50 scholarships were allocated in 2005 tostudents from 16 countries compared with 30 and 12 respectively in 2004. The latest beneficiaries includeArgentina, Venezuela, Bolivia, Kazakhstan and the Congo.They will be followed by South Africa, Sudan and Nigeria inSeptember 2006.

With two to ten scholarships awarded per country each year,the program offers students selected from the leadinguniversities and schools in their countries an opportunity to complete their education with a postgraduate degree, such as a master’s, MBA or Ph.D. in engineering, economics,or social or political science, at renowned French universitiesand schools. Once the study year is over, headquartersmaintains close relationships with the graduates by sendingout newsletters, while the subsidiaries invite them to in-house events.

Although the program is a priority for Total, certain countriesare unable to take part because they are still unstable or theireducational system is inadequate. In such cases, the initiativeis up to the subsidiaries. For example, our subsidiary inAngola allocates funds to educate young people starting inhigh school and awards young Angolan employees fundingfor further education.

Total’s Commitment to Microfinance

Microcredit allows people to create small businesses thatwill generate income and improve their living standards. In recent years, this type of initiative has been deployed bysubsidiaries in a number of countries, including Indonesia,Venezuela and Myanmar.

In 2005, to encourage other subsidiaries to more oftenincorporate microfinance in their community actions, weexpanded the information we provide in this area, set outapplication guidelines and prepared recommendationsbased on the experience of recognized stakeholders in thisfield.

More detailed information on microfinance programs isavailable on www.total.com.

Supported by Total, village committees in Indonesia’sMahakam Delta manage and award individual or grouploans to local residents to enable them to develop fishing,farming or carpentry activities or to set up small stores.Since the program began in 2000, Total has loaned anaggregate €300,000 to nearly 5,800 people.

Below, in Indonesia, a motivator visits a grocer who usedmicrocredit to start his business.

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Strengthening the Economy through Support for Smalland Medium-Sized Companies

Total has been supporting small and medium-sizedbusinesses in France for more than 20 years (see page 67). In recent years, this support has been extended to countriesoutside the OECD as well.

Since July 2002, we have supported the Industrial Pointe-Noire project, an initiative bringing together a variety of localeconomic stakeholders to create a network of small andmedium-sized businesses in Pointe-Noire, the Congo (seeour Web site for more details). The program’s success hasencouraged us to take part in similar projects in other non-OECD countries, such as the PATH program in Madagascar(see case study on page 66) and the Zimbo project in Angola.

The Zimbo Guarantee Fund in Angola

In 2005, Total E&P Angola introduced the Zimbo project,named after a type of shell that was once used as money. In partnership with Banco Totta de Angola, the programsupports local micro, small and medium-sized enterprises toencourage the creation of jobs and strengthen the economy.It will create a joint guarantee fund for Angolan companies,especially those near our host region.

The fund will facilitate access to loans for local companiesand encourage the bank to become involved by covering partof its credit risk. The projects financed—which will beselected on the basis of their financial return and potential forsocioeconomic development—will not exceed $20,000 in thefirst stage. The program began in February 2006. Representatives of Total and Banco Totta are conductingbusiness and financial analyses of the projects, while localorganizations Clusa, Prestigio and SNV are advertising theprogram and shortlisting projects.

Validation comprises five phases: identification and selectionof local projects (phases 1 and 2), examination by a technicalcommittee (phase 3), presentation of the project to the CreditCommittee to approve financing (phase 4), and follow-up by alocal organization (phase 5).

The program will eventually finance around 60 projects andcreate around 100 jobs.

Total and Pro-Natura, a SuccessfulPartnership in Nigeria

Our Nigerian subsidiary, EPNL, has supported NGO Pro-Natura since 2002, working in partnership withcommunities to design and implement projects that meettheir expectations, such as drinking water wells, a mother-and-child center, a craft industry building and even a cyber-center. The foundation of the program is mentoring by seasoned locals, who share theirexperience and train those just starting out.

Pro-Natura, which also works with other oil companies inthe coastal Niger Delta region, shares its expertise anddevelopment model, which is based on involvingcommunities to guarantee the success and sustainabilityof the projects that we support.

Relations between oil companies and communities areoften strained in Nigeria (see page 17). These programsare just some of the actions we have undertaken toimprove relationships and dialogue with neighboringcommunities, in which we make it clear that we—andothers—support their development aspirations.


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Enhancing Local Skills

In late 2003, we launched our first GSB project inMadagascar, in cooperation with the government, for whom improving road safety is a priority. Funded at $1 million, the three-year Program to ImprovePetroleum Product Transportation in Madagascar (PATH) is designed to enhance the skills, safety, productivity and revenue of small and medium-sized carriers. Its objectives are to:

• Improve the management and entrepreneurial capabilities ofbusiness leaders.

• Strengthen the technical skills and training of drivers,drivers’ assistants and mechanics, in particular in the areaof safety.

• Increase spending on vehicle fleet and tank maintenanceand replacement.

The key to PATH’s success is the partnership between localentrepreneurs, local NGO Voarisoa, France’s PetroleumProduct Transportation Association (APTH) and Total. Theprogram is supported by the UNDP and local authorities.

A Program to Improve Petroleum Product Transportation inMadagascar Total is a partner in the Growing Sustainable Business for Poverty Reduction (GSB) initiative that stems from the UNGlobal Compact Policy Dialogue 2002: Business and Sustainable Development. It is designed to reduce poverty bydeveloping businesses that respect international standards and the ten principles of the Global Compact.

An Ambitious Local Training Program

After a survey of Madagascar’s petroleum product transportationindustry, a six-member PATH team was set up by APTH in Francein July and August 2004. Training of business leaders and front-line workers began in October 2004 across Madagascar.

Business leaders attended 18 three-day modules over fivemonths, with a curriculum focused on the sustainability, profitabilityand quality of their companies. The 72 courses addressed suchimportant issues as strategic and operational management andfamiliarity with regulations. A total of 115 managers from 58 smalland medium-sized businesses were trained, for an aggregate2,289 training days. Attendance was close to 75%. Certain localcompanies have now joined forces, the first direct outcome of themanagement training for business leaders.

Training for drivers, drivers’ assistants and mechanics consisted ofseven classroom and demonstration modules spread over fivedays, covering petroleum products, tank truck equipment,accidents, fire, static electricity, defensive driving and drivingexercises. Despite the initial reluctance of companies to releasetheir employees for five days, the program’s main objective waswidely reached and, at the request of local authorities, PATH wasextended to the police to ensure better compliance withregulations. Tracking of students and their reassessment everythree years will help to further enhance their skills.

Toward Independent Project Management

In total, the PATH program delivered more than 8,200 days of training in petroleum product transportation, while over1,800 people were trained and evaluated. Subsequently, the training team shifted its focus to providing advice and consulting services to local companies. In the spirit of the initiative, Total intends to transfer the project to localcompanies and authorities, with the creation in 2006 of a dedicated organization.

PATH is now concentrating on its third objective, increasingspending on vehicle fleet maintenance and replacement.Financing packages being developed with banks inMadagascar should give small companies access to loans—something that was previously not a possibility.

Training Data

Business leaders

Drivers

Drivers’ assistantsand mechanics

Police

Other: Members ofNGOs, engineers,HR managers, etc.

Total

Number of participants

115

711

294

571

129

1,820

Training days

2,289

3,430

1,152

1,142

214

8,227


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Supporting Companies

Our long-standing commitment to supporting companiesfocuses on small and medium-sized businesses near ourfacilities. Deployed for more than 20 years in France, it isimplemented through four channels:

• In 2005, 50 companies benefited from our knowledge andexpertise through technological support and experiencesharing.

• A total of 120 companies received support for exports andinternational development to our host countries, in the formof intern or co-op placements in our subsidiaries forprospecting. In addition, business missions were organizedin Qatar and the United Arab Emirates in 2005.

• A further 115 companies received financial support tocreate, acquire or expand small and medium-sizedbusinesses, corresponding to 1,600 job commitments in 2005.

• Industrial hosting as part of the reconversion of the Lacqnatural gas field in southwestern France. With the supportof our subsidiary Sobegi, fine chemicals companies havemoved to the Mourenx and Lacq platforms.

Thanks to the experience acquired in France, we are nowplanning to extend this support to other countries, in particular non-OECD countries (see page 65).

Dialogue and Support inOECD Countries Dialogue with Neighbors

To meet local expectations in OECD countries, we fosterdialogue with host communities. In addition to specificprocesses already in place, such as Community AdvisoryPanels in the United States, Local Information and DialogueCommittees (CLIC) in France and the Common Ground®

initiative in Chemicals, we use such proprietary methods asSRM+ (see page 63).

The dialogue process often focuses on disamenities and onsafety, health and environmental impact. We therefore try tocreate innovative partnerships, such as the work underwaywith the Eco Maires association in France (see page 36).

Support for Companies in Host Regions

Revitalizing Areas Affected by the Restructuring of Our Chemicals Business

In recent years, our Chemicals business has restructuredoperations, closed sites and eliminated jobs in response tothe very challenging competitive environment. To offset thenegative impact of these measures, we are helping torevitalize areas affected by the restructuring (see page 58).

The Saint-Auban plant in southern France will be closingthree units in spring 2006. In addition to a redundancy planthat avoids lay-offs, Total signed a revitalization agreementwith the government in December 2005, designed to offsetthe negative impact on indirect jobs and to create 560 newjobs in the region over four years.

Around 400 jobs are expected to be created throughsubsidized loans to local small and medium-sized businessesfor startups or expansion. Arkema has allocated €5 million forthis purpose and will also be financing a €1.7-millioneconomic revitalization fund. The fund will support thecreation of a departmental economic development agencyand the implementation of a business hosting program, whichwill strengthen the attractiveness of the region and create anadditional 160 jobs.

The project follows on from those already deployed at Dieuzeand Brignoud. At the Atofina Dieuze plant site, where wehave pledged to create 80 jobs, 59 commitments have beenrecorded despite the discouraging local environment. InBrignoud, 153 commitments were recorded in 2005, whichshould enable the target of 200 to be met in 2006.

Mure & Peyrot, a Successful Technological Support Project

The baking industry uses steel blades to score unbakedbread dough so that yeast gas can escape during baking.Bordeaux-based blade and safety knife manufacturerMure & Peyrot (25 employees, revenue of €3.5 million in2005) asked Total for technological support tomanufacture plastic blades to replace steel ones.

As part of the regional PAR-TECH aid program, injectionmolded polypropylene blades were developed. Stainlessand safe, costing about the same as metal blades, theyare already being produced at a rate of 500,000 a year.

With this innovation, bakers can score their dough moreeasily and safely. Mure & Peyrot won the baking industry’sSafety Award for this invention.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005THE FUTURE OF ENERGY

Securing the future of energy poses two seemingly mutually exclusive challenges—keeping up with soaring energy demand, while also combating climate change. So even as we develop our resources,we are diversifying our supply and devising energy efficiency solutions.

CORPORATE SOCIAL RESPONSIBILITY REPORT 2005 2005THE FUTURE OF ENERGY

The Future of Energy

Dominique Copin

Reserves Strategy Analyst

What is the average recovery rate for a field?

Using proven processes such as waterflood and gasinjection, it averages around 35% for oil, although it can varysignificantly from one field to another. Innovative and proventechnologies can take this to over 50%. So there’s still a wayto go. Gas is different. Because we can already recover up to80% of a field’s reserves using conventional methods, there’sless room for improvement.

What are the issues related to recovering oil from a conventional field?

The production process is governed by the geometric andpetrophysical features of the reservoirs, the properties offluids and their interaction with formations. The factorsthat affect production and recovery include whether the oilis heavy and viscous or light and fluid, the presence ofgas, whether gas is released when the pressure in thereservoir drops, and the presence of an active aquifer.Other factors play an indirect role, for example the depthof the field, the overlying geological formations, whetherthe field is onshore or offshore, the cost of investmentsand operations, taxation, and the distance from gasmarkets.

What technologies are available to enhance the recovery rate?

Three in particular. First, the oil can be made more mobileby increasing the viscosity of the water injected in thereservoir, thereby improving the emulsion at the oil-waterinterface, which means that the water floods more of thereservoir. We can also inject carbon dioxide to dissolve itin the reservoir, which increases the volume and mobilityof the oil and, as a bonus, traps some of the injected gas.Lastly, we can use seismics to identify areas where the oilwas not extracted during production and then drill newwells. There are also new technologies that are worthstudying and deploying when oil prices are high, as well asa number of improvement avenues, some of which are stillin the design stage. The competitiveness of companiesand their success depends to a great extent on their abilityto deploy these new technologies.


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Replacing Our Oil and GasReservesIncreasing Resources

To meet growing demand for oil and gas and offset theamounts produced, the world oil industry needs to bring onstream 7 to 8 million barrels of oil equivalent per day of newreserves each year. At Total, we increase our resources bywinning new licenses, discovering reserves and developing new fields.

In 2005, Exploration & Production made two discoveries inLibya and was awarded licenses in Cameroon, Libya,Mauritania, and the U.K. and Norwegian sectors of the NorthSea, while bringing on stream the Greater Angostura field inTrinidad and Tobago and the Kristin field and an extension ofEkofisk in the Norwegian North Sea.

Our proved reserve replacement rate (1) was 120% in 2005.Continued exploration success, the launch of Yemen LNG (see page 70) and the acquisition of Deer Creek Energy Ltd. inCanada (see page 69) helped to raise proved and probablereserves to 20 billion barrels of oil equivalent at end-2005, for a reserve life of close to 22 years at current production rates.

Optimizing the Potential of Mature Fields

Innovation is another way to increase resources, byenhancing recovery from new fields and extending the life of mature fields (see interview opposite).

Fossil Fuels Still Needed for the Foreseeable FutureThere’s still no viable alternative to oil for automotive, air and maritime transportation, while the fast-growing powergeneration industry requires substantial amounts of coal and gas. As a result, fossil fuels will continue to be key drivers of economic growth. In response, we’re working to increase, optimize and diversify our resources.

(1) Group proved reserve replacement rate (consolidated subsidiaries and companiesaccounted for by the equity method), excluding the impact of price changes, withBrent at $40/b.

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Developing Non-Conventional Resources

Significant non-conventional resources can be tapped—extra-heavy oil (1), deepwater fields in water depths of 500 to 3,000 meters and very deep reservoirs(up to 6,000 meters) with extreme pressure and temperature conditions (over 1,500bar and 200°C). Once thought to be unproducible, they are gradually being broughton stream using advanced technologies and are critical to Total’s future.

Extra-Heavy Crude Oil

We have been developing extra-heavy crude oil since 2000 through our 47% interestin Venezuela’s Sincor project, one of the biggest of its kind in the world, withproduction of around 200,000 barrels per day.

In Canada’s Athabasca region, we boosted our investment in oilsands, raising ourinterest in the Surmont project to 50% and acquiring Deer Creek Energy Ltd., whichhas an 84% stake in the Joslyn project. Most of Joslyn’s resources will be recoveredusing open pit mining techniques, and the project will produce 2 billion barrels ofbitumen over 30 years. Like Surmont, it will also use steam assisted gravity drainage(SAGD) technology, in which steam is injected into the oilsands to make the heavycrude fluid enough to be pumped to the surface installations for processing in anupgrader. The project phases related to mining development and extractioninstallations are subject to approval by the Alberta Energy and Utilities Board in2006.

Deepwater Resources

Deepwater resources account for 5 to 10% of our proved and probable reserves andare expected to contribute to higher production in 2010. We are broadening ouroperations in Nigeria with the extension of the Usan field, the bringing on stream ofthe Bonga field, the development of Akpo, the acquisition of an interest in OilProspecting License (OPL) 215 and the signature of a production sharing contract in OPL 223. We are also continuing our deepwater expansion Angola, the Congo,with the development of the Moho-Bilondo field, and Australia, where we areexploring a number of blocks. In early 2006, we acquired an interest in the Tahiti fieldin the United States, one of the largest in the Gulf of Mexico.

Girassol, an Exploit

Brought on stream in 2001 with 40 subsea wells in a water depth of1,400 meters, Angola’s Girassol fieldis the world's largest deepwaterdevelopment with a single floatingproduction, storage and offloading(FPSO) vessel.

Higher Oil Prices

Oil prices have soared since 2004,and the average price of Brent (2)

was $54.5 in 2005. This 42% increaseover 2004 results from tightproduction capacity and fast-growing global demand. Risksrelated to geopolitical problems andclimate change have also spurredprices.

(1) Expressed in degrees API (American PetroleumInstitute), the gravity of the oil varies from less than 10° API for extra-heavy crude oil to more than 30° API for light crudes.

(2) There are three main marker crudes: Brent, traded inLondon, West Texas Intermediate (WTI), traded in NewYork, and Dubai Light, traded in Singapore.

Canada

Venezuela

1 Bboe

0.5 to 1 Bboe

0.5 Bboe

Norway

Nigeria

Angola

U.A.E.

KazakhstanUnited Kingdom

Proved and probable reserves*: 20 billion barrels of oil equivalent (Bboe)

Congo

Qatar

Yemen

Indonesia

Gas

Oil

LNG

Heavy oilDeep offshore oil

Location* Breakdown by type*

Total’s Proved and Probable Reserves* Portfolio

* Proved and probable reserves at end-2005 covered by exploration and production contracts, in fields where wells have been drilled, for which technical studies demonstrate that development is economically feasible with Brent at $40/b, including the share of Joslyn developed through open pit mining.


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Contributing to theDevelopment of GasUpstream and downstream, Total is a major gas operator,with interests in natural gas, liquefied natural gas (LNG) andliquefied petroleum gas (LPG).

Growing Our Natural Gas Resources

Natural gas is expected to represent around 35% of our totalproduction in 2010. Our commitment to the gas upstreamwas reflected in 2005 by a discovery in Norway and thebringing on stream of Carina-Aries in Argentina and NorthForvie in the U.K. North Sea.

Positioned Across the LNG Chain

The most efficient way to transport gas over long distances isLNG shipping, which will account for 30% of trade by 2020.In response, we are lifting our liquefaction and regasificationcapacity.

We intend to grow our business across the liquefied naturalgas (LNG) chain by 12% a year on average to 2010. Total has interests in six operating liquefaction plants out of a total of 19 worldwide, as well as stakes in four regasificationterminals—Hazira in India, commissioned in 2005, andAltamira in Mexico, Fos Cavaou in France and Sabine Pass inthe United States, all under construction.

In 2005, we launched the Yemen LNG project, in which wehave a 39.6% stake, to build a two-train liquefaction plantwith a combined capacity of 6.7 million metric tons of LNG a year in the port of Balhaf. The facility is scheduled forcommissioning in late 2008. A 320-kilometer pipeline will bebuilt to carry the gas from the Marib field in central Yemen to the plant. The project is supported by three 20-year LNGpurchase and sale agreements, with Suez LNG Trading,Kogas and Total Gas & Power Ltd.

In Qatar, Total signed heads of agreement to acquire a 16.7% participating interest in Train 2 of the Qatargas 2project, which will come on stream in 2008, and to purchaseup to 5.2 million metric tons a year of LNG over 25 years to be marketed in France, the United Kingdom and the United States.

Consolidating Our CoalPositionsWell-Distributed Reserves

With resources and mines distributed evenly worldwide andproved reserves of close to 200 years—versus around 40years for oil and around 60 for natural gas—coal is onceagain being considered as a prime energy source, eventhough it emits more CO2 when burned than other fossilfuels. We have produced and traded steam coal for powergeneration since the early 1980s.

In 2005, we marketed 9.5 million metric tons of coal, 50% of which we produced and the other 50% from tradingoperations. In South Africa, Total Coal Limited operates theForzando and Dorstfontein mines and has interests in twoothers in partnership. The coal is exported to Europe andAsia, along with other coal purchased worldwide.

In France, our subsidiary CDFE, formerly owned byCharbonnages de France, markets coal for district heatingand small manufacturing concerns, as well as supplying 70% of the industrial market.

Total is also working to develop carbon dioxide capture andsequestration technologies that will significantly improvecoal’s environmental performance (see pages 25-26).

• Constellation II platform in the Carina field, Argentina.

Véronique Hervouet

Biomass & Synfuel Development ManagerRefining & Marketing Strategy & Research

Can you describe the benefits and drawbacks of biomass?

Biomass, which accounts for around 12% of the world’sprimary energy, is the leading source of renewable energyand the only one that can be liquefied.

Made up of organic matter from living organisms, it has awide range of disparate properties. However, its lowenergy density and scattered production increasecollection and processing costs, which hampers its use inlarge amounts. Biomass is a core raw material in a largenumber of segments, including food, pulp and paper,textiles, construction, pharmaceuticals and chemicals, andusing it to produce energy is competitive with its otherapplications.

Biomass is also a flash point for powerful, sometimesconflicting political issues, such as energy diversificationand independence, agricultural policy and world trade,global and local environmental policy (combatinggreenhouse gases), regional development and ruraldevelopment, and transportation policy. We can’t overlookits potential contribution to meeting energy challenges, butwe have to carefully evaluate the issues related to thedevelopment of new processes, taking an approach that isboth global and tailored to the specific features of thelocal environment.

Tell us about Total’s approach and priorities.

Biomass will inevitably, although only partially, supplementfossil fuels in meeting energy supply in the 21st century.As Europe’s leading marketer of automotive fuel andbiofuel, Total wants to expand the use of renewablecarbon in products and industrial facilities.

From our point of view, energy conversion processes andtechnologies have to be chosen primarily in line with localfactors such as type and availability of biomass, industrialsynergies and legislation, and their benefits and impacthave to be taken into account through a life cycle analysis.

What we have to do is not identify the best genericprocess or technology, but select the most appropriateoptions, in synergy with our operations and the localenvironment.


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Renewable Energies, the Next GenerationEnvironmentally friendly and limitless, renewable energies already supplement fossil fuels. In 2004, hydro power indeveloped countries and traditional biomass in developing countries met 13% of global energy demand. Renewables are expected to play a major role in energy diversification in the years to come, and Total is committed to their development.

Biomass, a Flexible StrategyTailored to Local ConditionsEuropean Leader in Biofuels

Using biomass for energy depends on local resources andmarkets. Biomass not only has heat and power applications, it isalso an alternative source of liquid hydrocarbons, known asbiofuels.

Total has supported the development of biofuels since 1992 andis a European leader in the field, blending 800,000 metric tons ayear in its automotive fuel sold in Europe. In 2005, we blendedmore than 1.2% of biofuels in the automotive fuel marketed inFrance and have set a target of 5.75% in 2008, in line with theEuropean Union target for 2010.

Today, in Europe, we are active in the two main first-generationbiofuels: ethyl tertiary butyl ether (ETBE), derived from ethanol,and vegetable oil methyl ester (VOME). We own or are partnersin seven ETBE production facilities in Belgium, Germany, Franceand Spain, and blend VOME in diesel in our refineries anddepots in France, Germany and Italy. In 2005, we formed apartnership with Sofiprotéol and Diester Industrie, covering along-term VOME sale and purchase agreement, strengthenedtechnical cooperation and R&D, and broader joint actions,especially outside France.

We are also helping to develop second-generation biofuels,whose enhanced properties will supplement the existing biofueloffering. Four families of technology hold out promise in the nextten years. The first three aim to develop genuinebiohydrocarbons that can be blended in petroleum-based diesel:• Hydrotreating of vegetable oil and animal fat to produce a

high-performance synthetic biodiesel (NExBTL).• Biomass gasification, with synthesis of biohydrocarbons from

the gas.• Production of biocrude through pyrolysis (chemical

decomposition triggered by heat and pressure).• Biological conversion of biomass into fermentable

components.

The synthetic biodiesel process may soon be tested on anindustrial scale. Through a partnership with Neste Oil, we areexamining the feasibility of producing synthetic biodiesel, whichcould be available as early as 2008. The other three options willrequire further R&D to develop commercial and industrialapplications.


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(1) MW-peak: A megawatt-peak is 1,000,000 peak watts. A peak watt is the unit used torate the performance of photovoltaic panels; a system rated at one peak watt willdeliver one watt under peak solar irradiation.

(2) kW-peak: A peak kilowatt, or 1,000 peak watts.

Given the diversity of stakeholders and the complexity ofchallenges, we prefer partnerships with bioresourceproducers, manufacturers, technology developers,universities and research centers.

Tell us about Total’s partnerships.

In 2005, we launched more than a dozen studies andprojects on processes and technologies to developbiomass, most in partnership. For instance, we’ve teamedup with Neste Oil to examine the feasibility of building aunit at one of our European refineries to produce highperformance synthetic biodiesel from hydrotreatedvegetable oil and animal fat (see page 71). We are involvedin three BTL partnerships in Germany (see page 74), andare also working with Dutch partners on the innovativehydrothermal upgrading process, which uses high-pressure pyrolysis to upgrade wet biomass to produce abiocrude that could be used as refinery feedstock. Wehave also signed an R&D agreement with Sofiprotéol, theFrench leader in producing oilseed crops and vegetable oilmethyl ester (see page 71), and have joined two projectsunder France’s National Bioenergy Research Program, runby the French National Research Agency (ANR).

Photovoltaic Solar Energy, An Industrial CommitmentA Comprehensive Line of Services

There are two types of solar energy technology—solarcollectors that produce heat and photovoltaic cells thatgenerate electricity. Our involvement in photovoltaic solarenergy dates back to 1983 and the creation of Total Energie,now a 50/50 joint venture between Total and Electricité deFrance (EDF) that was renamed Tenesol in 2005 and is aworld leader in photovoltaic systems. Two Tenesolsubsidiaries manufacture solar panels. Based in South Africa,Tenesa has a production capacity of 35 MW-peak (1) a year,while France-based Tenesol Technologies has a productioncapacity of 15 MW-peak a year. Total has a 47.8% interest inPhotovoltech, alongside Electrabel and independent researchcenter Interuniveristy MicroElectronics Center (IMEC), set upto produce photovoltaic cells. The plant has a capacity of 20 MW-peak, which will be expanded to 80 MW-peak in 2008.

International Decentralized RuralElectrification Partnerships

We are taking part in three major decentralized ruralelectrification projects through renewable energy servicecompanies (RESCOs) in South Africa, (8,200 householdsequipped, with 15,000 planned by mid-2007), Mali (500 households equipped, 5,500 planned) and Morocco(19,400 households equipped, 58,000 planned by end-2008).

In Algeria, Tenesol equipped the villages of Fedhoune (10.5 kW-peak (2)) and Tahifet (80 kW-peak) and in Chile willinstall 3,000 115 W solar panels to supply electricity to as many homes, or 18,000 people, near La Serena. In Mexico, Tenesol Mexico will install 1,600 60W panels to supply irrigation pumps. Tenesol Argentina equipped 117 schools with 1,416 85W panels and Tenesol Colombiainstalled 60 hybrid solar-diesel systems as part of a wirelesstelecommunications project for Internet, telephone and fax access.

The equipment for consumers usually comprises a 50W-peakor 75W-peak panel, a battery and a load regulator, to supplythree or four low-wattage light bulbs and one or two powersockets.

• Like sunflowers, rapeseed is used in vegetable oil methyl ester (VOME), one of the two main biofuels.


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Promoting Access to Energy for RuralPopulations in Developing Countries

In developing countries, many rural communities are poor,scattered and have no access to energy and drinkingwater. Total helps to develop viable, sustainable,reproducible solutions, in particular through photovoltaicsolar energy and liquefied petroleum gas (LPG).

Totalgaz’s Shesha project in South Africa promotes thedomestic use of LPG, in particular to replace paraffin forcooking. More than 250,000 households already usebottled gas, and Totalgaz hopes to extend this to a further300,000 in 2006.

Photovoltaic solar panels can provide electricity for publicand school lighting, domestic applications, irrigation andhealth care centers. In addition to the large-scale projectsalready described, we provide financial support for solarmicroprojects. For instance, we funded the solar panels atthe Wassadou medical center in Senegal, built at theinitiative of the Kinkeliba development aid association andinaugurated in late 2005.

In Cuba, Total Overseas is supporting the solarelectrification of a village with 43 homes in Viñales valley, a UNESCO world heritage center. The project involving theUnited Nations Development Program (UNDP), Oceor Bankand Tenesol is the first phase in a program covering 168rural dwellings.

Innovating to Compete

We are conducting R&D programs, in particular focused onreducing the amount of silicon needed to manufacture solarpanels from 12 to 8 kilograms per kW. We are also examiningother solutions, including thin film technology, which reducesthe amount of silicon used by 90% and facilitates automatedproduction.

Our subsidiaries Photovoltech in Belgium and Atotech inGermany are improving the appearance of panels to integratethem more unobtrusively into roofs and facades.

In addition, photovoltaic applications are being developed fortelecommunications, lighting, signaling, and monitoring andtelemetry equipment.

Investing in Wind and WaterEnergyA Strong Commitment to Wind Power

In 2005, we were selected by the French Ministry of Industryto build the country’s largest onshore wind power project.Located in the Aveyron department in southwestern France,the 90 MW project could be commissioned in 2008, once thenecessary approvals are granted. The €100-million wind farmwill comprise 30 latest-generation wind turbines that willsupply power equivalent to the average domesticconsumption (excluding heating) of 140,000 people, avoidingemissions of 100,000 metric tons of CO2 a year.

The five wind turbines at the 12 MW Mardyck wind farmcame on stream in 2003 and produced 26.4 GWh in 2005,equivalent to the average domestic consumption (excludingheating) of 15,000 people.

Positions in Hydro Power and OceanEnergy

Hidroeléctrica Piedra del Aguila has been integrated into our Power business in Argentina since 2001. It operates a 1400 MW hydroelectric power plant on the Limay River thatgenerates 5500 GWh of power a year for the Buenos Airesregion. It is a key component of the Argentinean power gridand also helps with flood control.

In 2005, we invested in wave power with the acquisition of a 10% interest in a full-scale pilot project located offshore Santoña on the northern coast of Spain, the 1 MW PowerBuoy prototype, awaiting the necessarybuilding permit. With partners Iberdrola and Ocean Power, we have signed an agreement to extend this technology to France and identify potential sites.

• Through one of its three major decentralized rural electrificationprograms, Tenesol equipped 8,200 households in KwaZulu Natalprovince, South Africa.

Alternative Liquid HydrocarbonsWe are exploring a number of ways of producing intermediatesynthetic gas from heavy oil, natural gas, coal or biomass thatcould be used to manufacture automotive diesel and jet fuel,lubricants, base chemicals, dimethyl ether (DME) andMethanol to Olefins (MTO).

GTL and BTL, a Key Role for SyntheticGas

Gas to Liquids (GTL) is a process to convert methane intoliquid hydrocarbons. GTL is a clean fuel whose developmentis hampered by its low energy efficiency of around 50%,which reduces its competitiveness in the current state oftechnology. In 2005, we began an R&D program withpartners from industry and academia, including Velocys, tomake the chemical conversion process more efficient.

Total is also looking at Biomass to Liquids (BTL), a process toproduce second-generation biofuels. The process is dividedinto a number of stages—biomass gasification, treatment andpurification of gasifier effluent streams, and synthesis of liquidhydrocarbons using the Fischer Tropsch process, methanolor DME. There is a wide variety of options for selecting rawmaterials, pretreatment, gasification, and treatment andupgrading of the syngas, which offer an array of possibilitiesfor BTL.

Although the main products used are agricultural and forestresidues and waste, BTL’s greenhouse gas performance ismuch better than first-generation biofuels, which use largeamounts of energy during crop production and during theethanol distillation stage of commercial production. However,BTL’s technical and production complexity requiressubstantial investment, and its carbon and energyperformance (all sources combined) is poor.

Total has joined three partnerships, mainly in Germany, toexplore the feasibility of developing a biomass gasification unitintegrated in a refinery, initially comparable to a partialoxidation (POx) gasifier. The work involves an industrialfeasibility study for a BTL unit, a multipurpose gasificationpilot for coal and biomass integrated into methanolproduction, and comparative technical, economic andenvironmental studies on five BTL options.

Industrial DME Production

A clean (1) hydrocarbon similar to butane and propane andmanufactured from syngas derived from natural gas, coal orbiomass, dimethyl ether (DME) could potentially be used in anumber of applications, including replacing LPG and diesel,feedstock for olefin production, and fuel for power generation.With eight Japanese partners (2), Total has interests in twocompanies managed by Japan’s JFE. The first, DMEDevelopment, is developing a process to synthesize DME fromnatural gas, which will be more energy efficient and moreenvironmentally friendly than the two-stage process.Preliminary tests at a 100-metric-ton-per-day demonstrationplant on Hokkaido Island have demonstrated the process’reliability, and design optimization should be completed in2006. The second, DME International, is identifying andpromoting the DME market, to validate the economic feasibilityof building a commercial unit with a capacity of 3,000 to 6,000metric tons per day around 2010.

MTO, Polymers Derived from Gas

In the methanol to olefins (MTO) process, methanol fromnatural gas is converted into ethylene, propylene and heavierolefins that are transformed into propylene and ethylene usingthe olefin cracking process.

In late 2005, Total Petrochemicals and Honeywell subsidiaryUOP LLC began a demonstration program to integrate theTotal Petrochemicals/UOP olefin cracking process with theUOP/HYDRO MTO process. Total Petrochemicals is buildinga demonstration unit at its complex in Feluy, Belgium.Scheduled for commissioning in 2007, it will feed a pilotpolymerization unit.


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Toward New Energy VectorsWe are exploring liquid hydrocarbons that could replace conventional fuels and would be equally easy for consumers touse. We are also conducting hydrogen R&D.

(1) No particulate and SOx emissons.(2) Nippon Sanso, Toyota Tsusho, Hitachi, Marubeni, Idemitsu Kosan, INPEX, LNG Japan

and Japan Petroleum Exploration.


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Hydrogen Fuel CellsWe are expanding our activities in the promising hydrogenfuel cell segment. Fuel cells produce electricity from thesynthesis of hydrogen with oxygen; the only byproduct iswater. That means that greenhouse gas emissions are onlygenerated when hydrogen is produced. There are a numberof sources, including hydrocarbon reforming (a catalysisprocess for obtaining hydrogen from gasoline or anotherliquid fuel); syngas from biomass, coal or petroleum residue; or electrolysis of water using nuclear power or powergenerated using renewable energies.

A Broad Array of Applications

For automotive applications, Total is a partner in Renault’sRESPIRE project to create a prototype hybrid fuel cell-gasoline vehicle in 2008, using a reforming system developedby Nuvera. Tests are taking place at the Snecma site inVernon, France. We are also working with Renault and Delphion power auxiliaries for onboard electricity generation.

For stationary applications, our Le Roeulx service station inBelgium is testing a 5 kW fuel cell that uses LPG reformed ashydrogen. The power produced is used by the station orsupplied to the grid, while the hot water is used to wash cars.

A Range of Hydrogen Projects

For hydrogen processes to become widespread, users haveto have easy access to supply. After earlier opening ahydrogen station at a bus station in Berlin, Total has nowinstalled liquid and gaseous hydrogen supply in aconventional service station to supply demonstrator vehiclesand the adjacent bus station. These facilities are part of theClean Energy Partnership Berlin program, sponsored by theGerman Transportation Ministry. Within three years, 14 hydrogen buses will be operating from the bus station,which was part of the HyFleetCUTE project launched by the European Commission in December 2005.

We are taking part in a number of major European Unionprojects, including HyWays to develop a roadmap forcommercial hydrogen applications by 2030-2050, HyLights todefine and monitor planned demonstration programs, andHyApproval to prepare a handbook for approving hydrogenrefueling stations. With the European Commission andmanufacturers, we are involved in the Implementation Panelfor the European Hydrogen and Fuel Cell TechnologyPlatform, which is working on a lighthouse deploymentprogram for an E.U. action plan and large-scaledemonstration projects. In France, we are taking part in theNational Hydrogen Action Plan (PAN-H) to create an R&Dprogram with business and industrial applications as part of the E.U. process. In the United States, we are cooperatingin the Hydrogen Pathways program at the University ofCalifornia at Davis’ Institute of Transportation Studies,focused on understanding the potential transition to ahydrogen-based energy transportation system.

• Hydrogen fueling of a car at the inaugurationof the Hydrogen Competence Center’sdedicated service station in Berlin.

Enhancing Our Customers’Energy EfficiencyWe also provide customers with energy efficient products andhelp them to manage their individual consumption moreefficiently. In April 2005, Total Excellium Diesel and TotalExcellium 98 joined our automotive fuel line, allowing drivers tochoose between regular and premium unleaded gasoline andtwo diesels with different performance. These cleaner, moreenvironmentally friendly, more efficient, high performance fuelsreduce CO2 emissions by as much as 5%, lower emissions ofregulated pollutants such as carbon monoxide and fumes, cutnoise and help engines operate more efficiently and longer. Theyalso improve fuel economy, with gains of 15 to 50 kilometersper tank, depending on vehicle type and conditions of use.Obtained thanks to two additives that optimize consumptionand reduce friction, these advances make Total the first oilcompany to date to have adopted a strategy based on fuelefficiency.

Initially available in the 300 Total-branded service stations inFrance, as well as Belgium, Italy, the Netherlands, Portugal,Turkey and the United Kingdom, Excellium fuels have beenmarketed across the entire French service station network sincelate 2005.


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Enhancing Energy Efficiency, a Promising AvenueSoaring oil prices and environmental issues related to greenhouse gas emissions have brought energy efficiency firmlyback to the top of the agenda. Total not only produces and supplies energy, but we also consume 18.6 million metric tonsof oil equivalent a year. That makes energy efficiency a core concern for us.

(1) Indicator developed by Solomon Associates that compares actual energy usage tothe theoretical usage of a refinery with the same units and processes.

An Identified ChallengeCreated in 2000, the Energy Committee mediates interactionbetween specialists in businesses and supports energy issuemanagers in departments and businesses. The Committee hasthree working groups: Energy Markets, Energy Efficiency and theEnvironment, and Long-Term Energy Outlook. In 2005, energyefficiency certificates were a prime focus.

Enhancing Energy Efficiency in Our PlantsTo enhance energy efficiency in our plants, we are improvingthe management of our installations, especially boilers andfurnaces, upgrading our equipment and investing incogeneration, a process that produces both heat and powerand doubles energy efficiency. Since end-2004, the CHP facilityat the Normandy refinery has covered the plant’s steam needsand produced surplus power. Capable of producing up to 450metric tons per hour of steam and 250 MW of electricity, theunit is the largest of its type in France, has an energy efficiencyof 84% and boosts the site's environmental performance. Gas-fired, it does not release sulfur dioxide and has reducednitrogen oxide emissions by 15% and carbon dioxideemissions by 11% compared to the old fuel oil-fired boilers.

Between 2006 and 2010, Refining will spend around €200 million to enhance the energy efficiency of its refineries. The Feyzin refinery has begun a study on building an air heater,while the Provence refinery is building a furnace and studying a thermal integration project. A number of energy conservationprojects are being conducted concerning atmosphericdistillation and catalytic reformers. With these projects, Total’senergy intensity index (1) (EII) should improve by 8 pointsbetween 2004 and 2010.

Initiatives are also being pursued in the Chemicals business. InSouth Korea, for example, Total and Samsung are integratingsignificant energy savings in the plan to expand and upgradetheir joint petrochemical plant in Daesan, at a cost of $600 million.

Energy Efficiency Certificates: 54 TWh of Savings between 2006 and 2008

Energy efficiency certificates are based on obligations setby the French government to conserve energy in the formof electricity, gas, heat, cooling and home heating oil. Inlate 2005, the French Industry Minister set an energysavings target of 54 TWh between 2006 and 2008. Energysuppliers who fail to meet their obligations will have to paythe government a maximum fine of 2 eurocents per kWh.They are free to choose what actions are deployed toencourage customers to conserve energy, such asinformation, incentives in the form of bonuses forpurchasing equipment, aid for work, prefinancing services,and free audits. Once the system is in place, thecertificates could also cover lighting, heating andinsulation. Under certain conditions, the benefits alsoencompass renewable energies used to replace fossil fuelsfor building heating.

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CORPORATE SOCIAL RESPONSIBILITY REPORT 2005APPENDIXES

AppendixesKey Indicators

Notes on Statistics

Assurance Report on Certain Environmental and SocialPerformance Indicators

Global Reporting Initiative (GRI) Index/International PetroleumIndustry Environmental Conservation Association (IPIECA)Guidelines


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Environmental Indicators (1) 2003 2004 2005

Number of environmentally sensitive sites with ISO 14001 certification 40% 45% 58%

Greenhouse gases MTCDE/year (2) 62.9 67.9 70.3

Primary energy consumption MGJ/year (3) 718 775 781

Flaring and venting ktoe/year 6,149 5,947 6,012

SO2 metric ktons/year 157.1 179.0 167.8

NOx metric ktons/year 84.9 89.4 90.7

VOCs metric ktons/year 142.4 141.9 145.7

Freshwater use (excluding cooling water) Mcu. m/year 245 222 218

Water releases (excluding cooling water) Mcu. m/year 243 210 206

Hydrocarbon releases metric tons/year 2,806 2,074 1,613

Suspended solids releases (4) metric ktons/year 6.0 6.2 7.5

Chemical oxygen demand (COD) releases (4) metric ktons/year 12.0 11.2 10.5

Group oil spills Number 178 350 299In cubic meters 443 1,154 1,636

Hazardous waste production (treated offsite) (5) metric ktons/year 308.6 358.4 377.2

Safety Indicators 2003 2004 2005

Total recordable injury rate per million hours worked(Group) 9.5 7.4 6.3

Work-related incidents Total recordable injury rate per million hours worked (Oil/Petrochemicals) 6.0 4.5 3.9

Lost time injury rate per million hours worked 5.0 3.9 3.6

Fatalities 23 (6) 16 22

Percentage of sites presenting technological risks covered by a safety management system compliant with internationally recognized standards 45% 58% 68%

Human Resources Indicators 2003 2004 2005

Workforce (consolidated scope) Upstream 14,017 14,597 14,849

Downstream 34,410 34,045 34,611

Chemicals 61,212 61,570 62,214

Holding Company 1,144 1,189 1,203

Women in each age bracket < 25 33% 34% 35%

25-34 31% 31% 31%

35-44 27% 27% 27%

45-54 23% 23% 24%

≥ 55 19% 19% 20%

Average number of training days per employee by region Africa 10.0 9.1 10.0

Asia, Middle East, Pacific, DOM-TOM* 4.4 4.0 6.5

Europe (excluding France) 4.2 3.1 3.3

France 3.8 3.6 4.1

Americas 3.4 4.1 4.5

Community Indicator 2003 2004 2005

Community spending in non-OECD countries In € million 57 67 73

(1) The scope of environmental reporting was further expanded in 2005 to cover more than 90% of Group-operated sites, including all environmentally senstive facilities. For this reason, some of the figures in the table are higher than in previous reports.

(2) Millions of tons of carbon dioxide equivalent per year (excluding electricity exports, flaring and venting).(3) Millions of gigajoules per year.(4) Downstream and Chemicals only.(5) Classifications in the process of being standardized.

* French overseas departments and territories

(6) 11 in our former reporting scope


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Notes on the Statistics Usedin this Report

In 2005, environmental reporting covered all Total-operatedsites at December 31, 2005:

• Upstream: All Exploration & Production and Gas & Powersites.

• Downstream: All refineries, most Marketing sites (France,Europe, Overseas, Asia) and most Specialties sites(lubricants, specialty fluids, other specialty fuels, LPG,bitumen and asphalt, jet fuel).

• Chemicals: Nearly all sites (Total Petrochemicals, Arkema,Grande Paroisse, Hutchinson, Cray Valley and Bostik Findley).

A total of 873 production sites out of 934 responded to thereporting questionnaire. The statistics published in this reportcover greenhouse gases, chronic and accidental emissionsand releases to the air and water, the amount of water usedfrom and released into the natural environment, waste, andcertain data related to energy and site management systems.

The environmental indicators were reported in line with therecommendations of the Oil and Gas Industry Guidance onVoluntary Sustainability Reporting, published by theInternational Petroleum Industry Environmental ConservationAssociation (IPIECA).

Safety reporting covers all Total employees, as well ascontractor employees with a specific volume of work whowork at Group-operated sites or under contract to Total.Each site submits its reporting to the relevant business unit.The data are then consolidated at the business level and,every month, at the Group level. In 2005, the Group safetyreporting scope covered 423,176,000 hours worked,equivalent to around 245,000 people. In 2005, the safetyreporting guide was updated. It sets the criteria for rankingaccidents, in line with international standards. A major internalaudit has been undertaken to validate the process and verifythe accuracy of the data and the efficiency of theconsolidation system. It will be completed in mid-2006.

Social reporting is based on two resources—the GlobalWorkforce Analysis and the Worldwide Human ResourcesSurvey.

The Global Workforce Analysis is conducted twice a year, onJune 30 and December 31, in all 409 fully consolidatedcompanies owned 50% or more and included in the AnnualReport. The survey covers worldwide workforces, hiringunder permanent and fixed-term contracts, nationality, andemployee hires and departures, to produce a breakdown ofthe workforce by gender, category (managers and non-managers), age and nationality.

The Worldwide Human Resources Survey (WHRS) is anannual survey that comprises 78 indicators that supplementthose used in the Global Workforce Analysis. The indicatorsare selected in cooperation with the businesses and covermajor components of our human resources policy, such asmobility, career management, training, employee dialogue,Code of Conduct application, health, compensation,retirement and insurance. The survey covers a representativesample of 101 consolidated companies with 81,203employees. The statistics in this report are taken from themost recent survey, conducted in December 2005 andJanuary 2006. A total of 97 companies accounting for 71%of the consolidated workforce and operating in 35 countriesresponded. In 2005, new indicators were added to coverareas such as initiatives directed at the disabled, applicationof the diversity policy, long-term training, verification of theapplication of the Code of Conduct, and knowledge of theCode of Conduct.

Both surveys are conducted using the Enablon application,introduced at end-2003, and undergo similar internal controland validation processes.

Terminology Used in Social Reporting

Management staff refers to any employee whose job level isthe equivalent of 300 or more Hay points.

Managed scope: All subsidiaries in which one or moreGroup companies own a 50% stake, or 608 companies and129,307 employees.

Consolidated scope: All companies fully consolidated as inthe Registration Document, or 409 companies and 112,877employees.


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Assurance Report on Certain Environmental and Social PerformanceIndicatorsIn our capacity as Statutory Auditors of Total and at its request, we have performed a review that allowed us to provide a moderate level of assurance on certain environmentaland social performance data selected* by Total (“the data”) for 2005, identified in this report by the symbol .

The Strategy and Risk Assessment Department was responsible for preparing the environmental performance data and the Human Resources and CorporateCommunications Department was responsible for preparing the social performance data, in accordance with:• The Corporate Environmental Performance Reporting Guideline and the Corporate Greenhouse Gas Emissions Reporting Guideline.• The procedures applied to prepare the Worldwide Human Resources Survey and interim employee reporting (”Reference Procedures”), which can be consulted at

Total’s head office and which are described in part on page 79. It is our responsibility to express a conclusion on these indicators, based on our review.

Nature and Scope of the ReviewWe performed a limited review to provide a moderate level of assurance that the selected data is free of material misstatement. A higher level of assurance would haverequired a more extensive review.• We reviewed the processes with regard to their reliability, neutrality, understandability and completeness.• We met with the persons in charge of the reporting process in the Holding Company and in the Exploration & Production, Gas & Power, Refining & Marketing, and

Chemicals businesses.• As part of our review, we visited 12 operating sites (1) representing 17 to 36% of the consolidated environmental data for Total in accordance with the indicators and

seven subsidiaries (2) representing 11% of consolidated employees for social data. For these sites and subsidiaries, we verified understanding and application of theprocedures and, on a test basis, verified the calculations, performed consistency checks and reconciled the data with supporting documentation.

• We also verified, on a test basis, calculations and data consolidation at the business and holding company levels.

Comments on the Procedures

Relevant, detailed information on the preparation of the data and the scope of reporting are provided on pages 78 and 79 of this report.

We bring the following comments on the reporting process to your attention:

Environmental Reporting• After being improved in the Chemicals business, environmental reporting resources were strengthened across the organization, especially in Exploration & Production.• In Refining, some areas of the environmental reporting procedures need to be finalized and further improved. In Exploration & Production, the procedure for calculating

CO2 emissions from flaring were strengthened; however, uncertainty calculations for this contribution should be documented. The rules for classifying waste should bemore standardized in all businesses.

• Internal controls were improved. The application of control procedures should be further strengthened in the Marketing segment.

Social Reporting • The dedicated social reporting application has been deployed correctly.• Procedures for reporting this data need to be expanded. Indicator definitions must be made more specific to facilitate understanding and application outside France,

given the diversity of legal systems and practices. In the subsidiaries, documentation of data must be improved, and internal controls formalized and strengthened toensure the continued reliability of reporting.

ConclusionDuring our review, we observed misstatements concerning “Hazardous waste production (treated offsite)” at some Exploration & Production and Refining sites. Thesewere mainly classification errors and have since been corrected.

Based on our review and subject to this reservation, nothing has come to our attention that causes us to believe that the reviewed indicators have not, in all materialrespects, been prepared in accordance with the procedures.

Neuilly-sur-Seine and Paris-La Défense, March 20, 2006

Statutory Auditors

Ernst & Young Audit KPMG AuditA Department of KPMG S.A.

Gabriel Galet and Philippe Diu Eric Duvaud René Amirkhanian Philippe ArnaudPartners Partner Partner Partner

Manager of the Environment Manager of the Environment and Sustainable Development Department and Sustainable Development Department

* Environmental performance indicators: Number of ISO 14001 certified sites, greenhouse gases (CO2, N2O, CH4, HFC, PFC, SF6), SO2, NOx, hazardous waste production (treated offsite).Social performance indicators: workforce (by age, socio-professional category, gender), hires, departures and balance, French and non-French managers, number of training days, guaranteedminimum wage, mobility, regular medical checkups, employee representatives.(1) Exploration & Production: Gabon and United Kingdom subsidiaries; Gas & Power: Central Puerto in Argentina; Refining: Normandy, Grandpuits and Les Flandres sites in France, Leuna site in

Germany; Marketing: Durban terminal in South Africa; Chemicals: Changshu site in China, Pierre-Bénite, Carling and Grandpuits sites in France. (2) Exploration & Production: Gabon and United Kingdom subsidiaries; Gas & Power: Central Puerto in Argentina; Refining: Total France S.A., Total Raffinerie Mitteldeutschland GmbH;

Chemicals: Total Petrochemicals France, Grande Paroisse S.A.


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GRI/IPIECA INDEXMain indicators covered by the CSR ReportDetails available at www.total.com

GRI IPIECA Page

Vision and Strategy Sustainability Vision and Strategy 1.1 1.2 pp. 2-9

Profile Organizational Profile 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 pp. 4-7

Report Scope 2.10 2.11 2.12 2.13 2.15 2.16 pp. 1, 78-79

Report Profile 2.18 2.19 2.20 2.21 2.22 pp. 1, 78-79

Governance Governance 3.1 3.2 3.6 3.7 3.8 pp. 8-10

and Management Stakeholder Engagement 3.9 3.10 3.11 3.12 pp. 11-12

Systems Overarching Policies and 3.13 3.14 3.15 3.16 3.17 3.19 3.20 ENV-6 H&S-1 SOC-A1 pp. 6-9 , 10-12, Management Systems 23, 34-35, 78-80

Economic Customers EC1 EC2 pp. 4-5

Performance Suppliers EC3 ECO-3 p. 18

Indicators Employees EC5 ECO-A2 p. 18

Providers of Capital EC6 EC7 ECO-2 ECO-3 ECO-A3 p. 18

Public Sector EC10 EC12 ECO-1 ECO-A1 SOC-A4 pp. 18, 60, 63

Indirect Economic Impacts EC13 pp. 60-61, 67

Environmental Energy EN3 EN17 ENV-5 ENV-A8 pp. 24, 68-76

Performance Water EN5 ENV-A7 p. 28

Indicators Biodiversity EN7 EN27 ENV-A9 p. 32

Emissions, Discharges, and Waste EN8 EN9 EN10 EN12 EN13 EN31 ENV-1 ENV-A1 ENV-2 pp. 24, 27-30 ENV-A2 ENV-3 ENV-A3 ENV-4

Products and Services EN14 pp. 30, 71-76

Transportation EN34 pp. 30 40-43

Employment LA1 LA12 SOC-A3 pp. 4-5, 49-50, Labor Practices 54-55

and Decent Work Labor/Management Relations LA3 LA4 SOC-A2 SOC-7 pp. 52-53, 58

Health and Safety LA5 LA7 LA8 LA14 H&S-2 H&S-3 H&S-4 pp. 37-40,45-47, 79

Training and Education LA9 LA16 LA17 SOC-5 pp. 50-51

Diversity and Opportunity LA10 LA11 SOC-4 SOC-A3 pp. 56-57

Human Rights Strategy and Management HR1 HR2 HR3 HR8 SOC-1 pp. 15-17, 19

Non-Discrimination HR4 SOC-1 SOC-4 pp. 56-57

Freedom of Association HR5 SOC-1 SOC-7 pp. 53-54and Collective Bargaining

Child Labor HR6 SOC-1 SOC-7 pp. 10, 53

Forced and Compulsory Labor HR7 SOC-1 SOC-7 pp. 10, 16, 53

Disciplinary Practices HR9 HR10 SOC-6 p. 15

Security Practices HR11 SOC-1 SOC-9 p. 17

Society Community SO1 SOC-A4 SOC-A5 SOC-8 pp. 60-67

Bribery and Corruption SO2 SOC-2 pp. 19-20

Political Contributions SO3 SOC-3 SOC-A1 p. 11

Competition and Pricing SO6 SO7 p. 19

Product Customer Health and Safety PR1 H&S-5 p. 46Responsibility

Corporate CommunicationsTOTAL S.A.Head Office: 2 place de la CoupoleLa Défense 6, 92400 Courbevoie, FranceShare Capital: €6,179,016,260Registered in Nanterre: RCS 542 051 180

www.total.com