TotalEnergies Marketing Canada Inc. and TotalEnergies Marketing USA, Inc.
2024 ANNUAL JOINT REPORT ON FORCED AND CHILD LABOUR IN SUPPLY CHAINS
This report is made pursuant to Section 11 of the Fighting Against Forced Labour and Child Labour in Supply Chains Act (the “Act”). It constitutes the annual joint report of TotalEnergies Marketing Canada Inc. (“TEMCA”) and TotalEnergies Marketing USA, Inc. (“TEMUSA”), for the financial year ending December 31, 2024.
TEMCA and TEMUSA do not directly report under similar legislation in any other jurisdiction.
1. STRUCTURES, ACTIVITIES AND SUPPLY CHAINS
1.1. TotalEnergies SE is a leading international energy company active worldwide in the exploration, production, processing and marketing of oil and biofuels, natural gas and green power solutions, renewable energies and power. It has more than 100,000 employees across approximately 120 countries. TotalEnergies SE’s shares are listed and publicly tradeable on the Euronext Paris Stock Exchange, the Euronext Brussels Stock Exchange, the London Stock Exchange and the New York Stock Exchange.
TEMCA (Canada Business Number: 836003814RC0002) results from the merger of Total RM Canada Inc. and Total Canada Inc., which took place on January 1, 2013, under the Canada Business Corporations Act. TEMCA, a corporation with a share capital of 73,236,400 CAD, has its principal and registered office at 220, Lafleur Avenue, Montréal, H8R 4C9, Québec, Canada. At the end of the financial year ending December 31, 2024, TEMCA had 87 employees.
TEMUSA (Delaware Secretary of State File Number: 2248500) is a corporation incorporated under the laws of Delaware. TEMUSA, with a share capital of 1,000 USD, has its principal and registered office at TotalEnergies Tower 1201 Louisiana Street, Suite 1800, Houston, Texas 77002. At the end of the financial year ending December 31, 2024, TEMUSA had 159 employees.
TEMCA and TEMUSA are 100% owned by TotalEnergies Marketing Services (“TEMS”) (Siren Number: 542 034 921, Siret Number: 542 034 921 16871), a simplified joint-stock company (Société par Actions Simplifiée, SAS), with a share capital of 324,158,696 EUR, which was incorporated on September 7, 1954 under the French Code of Commerce (Code de commerce). In turn, TEMS is 100% owned by TotalEnergies SE (referred to, collectively with its subsidiaries, including TEMCA and TEMUSA, as “TotalEnergies” or the “Company”).
1.2. TEMCA and TEMUSA are part of the Marketing & Services (“M&S”) business segment of TotalEnergies SE. The M&S segment formulates and markets a variety of petroleum fuels, lubricants, and associated services, both through the service station network and to industrial customers. It also offers its clients new forms of energy and mobility services, such as biofuels, electric vehicle charging, LNG for ships, natural gas, biomethane, and hydrogen for road transportation.
TEMCA (and its predecessors, prior to such merger) has been present in Canada for more than 18 years. TEMCA manufactures and distributes a full line of lubricants, engine oil, transmission fluid, UTTO, hydraulic oil, greases, for passenger car, heavy-duty and industrial markets across Canada. TEMCA qualifies as a Reporting Entity under the Act as (i) it has a business place in Canada, is doing business in Canada and has assets in Canada; and (ii) has at least $20 million in assets for at least one of its two most recent financial years and has generated at least $40 million in revenue for at least one of its two most recent financial years.
Operating in the United States since 1957 and present in more than 30 states, TEMUSA operates through a number of business lines including: additives, aviation fuels, marine fuels and lubricants. TEMUSA qualifies as a Reporting Entity under the Act as (i) it manufactures petroleum lubricants products (automotive and industrial) outside of Canada, imports and stores such products at a third party warehouse in Canada; and (ii) has at least $20 million in assets for at least one of its two most recent financial years, and has generated at least $40 million in revenue during at least one of its two most recent financial years.
1.3. TotalEnergies works with a network of over 100,000 suppliers of goods and services worldwide and selects suppliers who conduct their business responsibly and respect Human Rights. TotalEnergies has chosen to coordinate the management of relationships with suppliers through a dedicated cross-functional subsidiary, TotalEnergies Global Procurement (“TGP”), specifically tasked with deploying the Sustainable procurement program, providing purchasing services, and assisting TotalEnergies’ entities and sites. Documents and tools for suppliers are publicly available at: https://totalenergies.com/suppliers.
2. POLICIES AND DUE DILIGENCE PROCESSES
TotalEnergies upholds high professional standards of behaviour in all its business dealings, and has implemented a range of policies, guides, and training programs to ensure these standards are met. TotalEnergies’ non-financial performance metrics, including actions supporting Human Rights, are reported in the 2024 Universal Registration Documenthttps://totalenergies.com/system/files/documents/202403/totalenergies_u… published by TotalEnergies.
TotalEnergies implements measures to prevent forced and child labour in its own activities, as well as in its supply chain, and requires its suppliers to maintain ethical business practices. TotalEnergies is continuously extending its actions to combat forced and child labour, focusing mainly on identifying risks within its activities and supply chain, and diligently following up on any risks identified.
TotalEnergies implements its commitment to prohibit forced and child labour in its business through five key actions: policies (2.1), governance and processes (2.2), due diligence including actions regarding the supply chain, assessments and audits (2.3), and training (6).
2.1. POLICIES
At a corporate level, policies, including those relating to Human Rights, which apply to all employees worldwide, have been adopted. These policies, which are implemented by subsidiaries - including TEMCA and TEMUSA - include the following:
a) The Code of Conduct 1: “Respect for Each Other” is one of TotalEnergies’ core values. As such, respect for Human Rights includes respect for internationally recognized Human Rights standards; in particular TotalEnergies abides by the following:
1. The Universal Declaration of Human Rights,
2. The United Nations Guiding Principles on Business and Human Rights (UNGPs),
3. The Voluntary Principles on Security and Human Rights (VPSHR),
4. The principles set forth in the fundamental conventions of the International Labour Organization (ILO),
5. The OECD Guidelines for Multinational Enterprises,
6. The Ten Principles of the United Nations Global Compact.
b) The Human Rights Briefing Paper, presents TotalEnergies’ approach, commitments, and actions with regard to respect for Human Rights. The third edition of the Human Rights Briefing Paper was published in January 2024.
c) The Guide to Human Rights, which aims to raise awareness among TotalEnergies employees on issues related to Human Rights in the industry, and provides guidance on the appropriate behaviour to adopt in their activities and relationships with stakeholders.
d) The Fundamental Principles of Purchasing (“FPP”), outline the commitments that TotalEnergies expects from its suppliers, including in the field of Human Rights at work. Suppliers are required to comply with these commitments, ensure compliance by their own suppliers, and continuously improve their performance regarding the subjects covered by the FPP.
e) The Practical Guide on Human Rights at Work, which provides buyers with tips to track potential Human Rights issues at the suppliers’ and contractors’ end and to address these issues during the contractual relationship.
2.2. GOVERNANCE AND PROCESSES
2.2.1. TotalEnergies’ Human Rights Department, in the Sustainability & Climate Division 2, coordinates the analysis of TotalEnergies’ Human Rights risks, supports operational teams, and supervises the actions to promote respect for Human Rights, in close collaboration with the Ethics Committee, and in accordance with the Code of Conduct.
The Human Rights Steering Committee, led by the Human Rights Department, monitors the implementation of TotalEnergies’ Human Rights Roadmap, and meets several times a year. The Committee includes representatives of each business segment, including representatives from M&S. Each business segment, as well as TGP, appoints a Human Rights Coordinator whose role is to oversee Human Rights matters in his/her respective business segment and to collaborate with TotalEnergies’ Human Rights Department.
The M&S business segment has set up a Human Rights Committee in charge of monitoring the deployment of the M&S Human Rights Roadmap and promoting respect of Human Rights in all its activities. The committee is composed of representatives from each geographical zone in which M&S operates (i.e., Africa, America, Asia Pacific/Middle East and Europe).
At the operational level, Human Rights Representatives, Compliance Officers and/or Ethics Officers are appointed, as is the case within TEMCA and TEMUSA. They are in charge of promoting the values outlined in the Code of Conduct among subsidiaries’ employees and ensuring that TotalEnergies’ policies and procedures are correctly implemented locally.
2.2.2. TotalEnergies’ Ethics Committee is responsible for overseeing the implementation of the Code of Conduct. Its chairman, who reports to the Chairman and Chief Executive Officer of TotalEnergies SE, presents an annual ethics report to the Governance and Ethics Committee of the Board of Directors.
TotalEnergies’ employees, suppliers, as well as other external stakeholders are encouraged to report incidents or complaints involving a breach, or potential breach, of the Code of Conduct (“Speak Up”), which includes cases involving Human Rights, to the Ethics Committee using the following email address: [email protected].
The Ethics Committee ensures the protection of the identity of the person making the report, and that no reprisals are taken against that person, nor against those taking part in the processing of the complaint. All alerts received are addressed and, when necessary, recommendations are made in order to lead to the implementation of corrective actions. Employees may also report concerns to their immediate manager or any other manager, the Human Resources Department or to the Compliance Officer or Ethics Officer in the relevant country. Suppliers may contact the internal supplier mediator using the following email address: [email protected].
2.2.3. TotalEnergies requires its suppliers to comply with the FPP, which are derived from its Code of Conduct, or to apply equivalent standards, and to ensure compliance by their own suppliers in turn. TotalEnergies also requires all suppliers to take particular care to comply with standards and procedures in the field of Human Rights, notably regarding the working conditions of their employees and those of their suppliers. TGP is rolling out a complete supplier engagement and qualification process, which includes a Human Rights dimension. Each subsidiary, including TEMCA and TEMUSA, is responsible for implementing this qualification process.
As part of this process, suppliers must adhere to the FPP and share their sustainability commitments via a questionnaire covering six criteria: 1) administrative, 2) anti-corruption, 3) technical, 4) HSE, 5) financial and 6) Human Rights and environment – which includes issues related to forced and child labour. A risk analysis is conducted for each supplier, followed by a detailed assessment where deemed necessary.
2.2.4. Subsidiaries, including TEMCA and TEMUSA, must include the FPP – or replace them with equivalent principles at the end of the negotiation – in all contracts concluded with suppliers. Principle 1 of the FPP covers Human Rights at work and the prohibition of forced and child labour. Serious violations by a supplier of the FPP entitle TotalEnergies’ entity party to the contract to terminate the contract.
TotalEnergies ensures compliance with the FPP by its suppliers through an audit program (see 2.3. Assessments and audits).
2.3. ASSESSMENTS AND AUDITS
2.3.1. In line with the UNGPs, TotalEnergies conducts Human Rights due diligence through its risks management processes3 when deemed appropriate. In addition to the audits and assistance missions carried out by TotalEnergies’ Audit and Internal Control Division, which cover certain Human Rights-related issues, the ethics and Human Rights-related practices of TotalEnergies’ entities are regularly assessed by independent third parties and qualified experts. TotalEnergies identifies, prevents, mitigates and remedies any impact on Human Rights that it may be involved in through its activities, as needed. Particular attention
is given to risks affecting people and most vulnerable groups.
2.3.2. TotalEnergies SE conducts, via an independent third party, Ethics and Human Rights Assessments of its subsidiaries to ensure they comply with the principles and values enshrined in the Code of Conduct. In 2024, seven Ethics and Human Rights Assessments were conducted in subsidiaries located in the following countries: United States, Angola, Equatorial Guinea, Nigeria, Philippines, Brazil and Serbia. These
assessments confirmed that the Code of Conduct has been duly incorporated by the subsidiaries. Since 2022, the M&S business segment has been conducting onsite “Human Rights at work” assessments, via an external service provider, within the service stations operating under its brand. These assessments, which include interviews with service station dealers and employees, site visits and document reviews, aim to identify best practices, areas of improvement, and lead to action plans.
2.3.3. In January 2022, TotalEnergies SE’s Executive Committee adopted the Sustainable procurement program, thereby expanding the supplier audit framework to include sustainable development and Human Rights issues, such as forced and child labour. TotalEnergies’ Sustainable procurement program (20222025) is aimed at assessing 1,300 priority suppliers - which account for nearly 60% of TotalEnergies’ purchasing expenditure - on their sustainable development performance. The audits focus on priority suppliers, selected on the basis of the importance of their commercial relations with TotalEnergies as well as on the basis of the risks they present in terms of Human Rights and/or the environment due to the sector and/or the country in which they operate.
Priority suppliers undergo on-site audits, carried out by an external service provider, which include on-site visits, documentary reviews, and interviews with employees. They measure respect for Human Rights in the workplace, and cover topics, such as: forced and child labour, working conditions, and health and safety. TotalEnergies achieved its target of auditing 300 suppliers on-site in 2024. In total, since 2023, TotalEnergies has audited 600 priority suppliers in more than 60 countries. On-site audits of priority suppliers sometimes identify deficiencies that could have an impact on workers in the upstream value chain, which mainly relate to safety in the workplace, the absence of supplier reporting mechanisms, and working conditions (e.g., vacation entitlement under local laws). When a deficiency is observed during the on-site audit, the supplier must put in place an action plan, followed by TGP teams, and whose effectiveness is verified by an independent external service provider. Suppliers’ maturity and performance in terms of the environment, Human Rights, ethics and sustainable procurement are also assessed through documentary assessments conducted by an external service provider. Suppliers’ documentary assessments also give
rise to improvement plans.
2.3.4. On a local level, TEMUSA conducts third-party screenings using an external tool. On a monthly basis, vendor and customer party data is extracted from TEMUSA’s systems and uploaded by Trade Compliance to the external tool. This tool screens the data nightly against global denied/restricted third-party lists. If a match is found, the party is "blocked". Trade Compliance reviews these matches to determine their validity; if negative, the “block” will be removed, while positive matches will either remain in “blocked” status or will be changed to “denied” status and TEMUSA will be notified that further activity with this party should not continue, or that additional due diligence may be required.
3. FORCED LABOUR AND CHILD LABOUR RISKS
Salient Human Rights issues associated with TotalEnergies’ activities and business relationships were identified following a risk-mapping exercise conducted with the assistance of an external consultant. Those salient issues are divided across three key areas: 1) Human Rights in the workplace, 2) Human Rights and local communities, and 3) respect for Human Rights in security-related activities. The risks of impacts on Human Rights for TotalEnergies’ personnel and third parties were identified according to the criteria defined in the UNGPs Reporting Framework: severity, scope and/or the remediable nature of the impact. Salient Human Rights issues are the Human Rights at risk of the most severe negative impact through TotalEnergies’ activities or business relationships.
The Human Rights in the workplace risk is subdivided into three salient issues, which concern TotalEnergies’ employees, as well as its suppliers’ and business partners’ employees: (i) forced and child labour, (ii) non-discrimination, and (iii) fair, satisfactory and safe conditions of work and safety. TotalEnergies prohibits all forms of forced labour and child labour, does not tolerate any form of discrimination – whether based on origin, nationality, gender, age, disability, sexual orientation or affiliation
with a political, religious, union organization, or minority group – and takes the necessary steps to ensure decent working conditions.
In 2024, TotalEnergies was not aware of any serious incidents related to Human Rights (such as forced labour, human trafficking, or child labour, for example).
4. REMEDIATION MEASURES
4.1. TotalEnergies provides, in cooperation with its suppliers and business partners, appropriate remediation of any adverse Human Rights impact, which may result from its activities. TotalEnergies’ stakeholders have access to remedies through the global ethics line ([email protected]) (see 2.2. Governance and processes) and through other grievance mechanisms implemented locally 4, which do not impede access to judicial or extrajudicial grievance mechanisms.
Both TEMCA and TEMUSA implement local procedures that specifies the rules governing the processing of complaints and grievances expressed by stakeholders at their sites and facilities. TEMCA and TEMUSA’s local procedures apply to all their respective sites, facilities and projects. Contractor companies working on TEMCA and TEMUSA’s facilities are informed of the procedures and receive training when they are actively involved in their application.
TotalEnergies does not tolerate any reprisals towards anyone submitting a complaint in good faith and expects its suppliers and subcontractors to ensure that their employees can express grievances and concerns without fear of reprisal (see principle 1 of the FPP).
4.2. In accordance with the ILO standards, hiring employees under the age of 15 is prohibited. Additionally, the minimum age for recruitment for any type of employment or work considered dangerous is 18. TotalEnergies remains particularly vigilant through its suppliers and contractors' qualification process notably by enhancing its buyers’ awareness on such topics. In May 2022, TotalEnergies published a Practical Guide on Human Rights at Work. Forced and child labour are key focus points in this Guide.
4.3. TotalEnergies continuously engages in an open dialogue with its stakeholders including local communities, civil society organizations and Human Rights defenders to better understand and address potential adverse Human Rights impacts. TotalEnergies also engages with industry associations, business partners and governments to build its leverage to address Human Rights issues and promote respect for Human Rights globally. For instance, in December 2018, TotalEnergies committed to pursuing its efforts with regard to decent work and respect for Human Rights in its supply chain by adhering to the Ten Principles contained in the United Nations Global Compact, and, in this context, participates in webinars. TotalEnergies is also an active member of the International Petroleum Industry Environmental Conservation Association's (IPIECA) Supply Chain Working Group. In 2022, TotalEnergies became the first oil & gas
company to join ILO’s Child Labour Platform, a multi-sector initiative to combat child labour. It aims to enable exchanges of best practices to identify and fight child labour by addressing its root causes among businesses of various sectors participating in this initiative.
5. REMEDIATION OF LOSS OF INCOME
TotalEnergies’ vision of shared prosperity is based on three principles: 1) dialogue and engagement with all host communities, 2) assessing and reducing the impact of TotalEnergies’ operations, and 3) contributing to local social and economic development that meets the local community’s needs. Contributing to local socio-economic development long-term operations in a host territory means developing profitable,
sustainable projects that create jobs and develop skills locally. In addition to employment and using local suppliers for projects, TotalEnergies supports education, getting young people into employment, protecting cultural heritage, providing access to water, health, and road safety, all of which contribute to reducing inequality.
6. TRAINING
To disseminate its commitments and foster a culture of respect for Human Rights, TotalEnergies raises employee awareness via internal communication channels, such as intranet sites, organizing trainings on specific topics, and planning annual events, such as the Sustainab’ALL Day and the Business Ethics Day.
The 2024 Business Ethics Day dealt with returning to the basics of the Code of Conduct. A Live Event focusing on TotalEnergies’ core values, with the participation of TotalEnergies’ Chairman and Chief Executive Officer, was organized by the Company. TEMCA and TEMUSA’s employees were encouraged to attend the Live Event virtually from their workstations.
In 2020, TotalEnergies developed a Human Rights training plan to upskill employees on the requirements of the Code of Conduct, including the respect of Human Rights, and the prohibition of forced and child labour. This plan is intended for TotalEnergies’ employees who are prioritized based on their exposure and position. Training at the corporate level includes both online and face-to-face sessions which are, for example, held during Ethics and Human Rights Assessments, coordinated by TotalEnergies SE, and onsite “Human Rights at work” assessments, coordinated by the M&S segment. In 2024, more than 4,923 employees belonging to the priority categories were trained in face-to-face training sessions on Human Rights.
An e-learning module focusing on Human Rights in the workplace has been included in TotalEnergies’ compulsory e-learning package for all employees. In 2024, nearly 9,900 employees completed this online module. At the end of the financial year ending December 31, 2024, 159 out of 159 employees of TEMUSA and 85 out of 87 employees of TEMCA have attended the online training.
TotalEnergies regularly raises awareness among its suppliers regarding sustainable development. It engages its main suppliers through supplier days, periodic meetings and other awareness-raising tools. In 2024, the Company organized a Suppliers Day, bringing together approximatively 180 representatives of TotalEnergies’ Suppliers, as well as Supplier Days, notably in China. The Company has also raised awareness among its suppliers through training sessions entirely dedicated to sustainable development, such as the one organized in 2024 in Angola. Awareness-raising initiatives are also carried out among buyers in order to strengthen the sustainable procurement culture (themed webinars, newsletters). Buyers are required to undergo training on sustainable procurement.
7. ASSESSING EFFECTIVENESS
TotalEnergies implements its Human Rights approach through the development of Human Rights Roadmaps – including at the business segment level, M&S also having a Human Rights Roadmap – and action plans. TotalEnergies’ Human Rights Roadmap is presented at regular intervals to members of TotalEnergies SE’s Executive Committee to support the ongoing efforts to enforce the Code of Conduct and respect for Human Rights. The same applies to the M&S Human Rights Roadmap, which is endorsed at regular intervals by either the M&S Management Committee or the M&S Human Rights Committee. Furthermore, multi-disciplinary committees review the implementation of measures within their purview. For instance, the Ethics Committee monitors compliance with the Code of Conduct. TotalEnergies’ Human Rights Steering Committee coordinates the actions regarding Human Rights taken by the business segments and subsidiaries. Indicators are also used to measure the effectiveness of the measures and the progress made, as well as to continuously seek ways to improve. TotalEnergies tracks and reports on its Human Rights progress in various reports, including the Human Rights Briefing Paper.
CERTIFICATE
This joint report was approved by the board of directors of TotalEnergies Marketing Canada Inc. pursuant to subparagraph 11(4)(b)(i) of the Act. In accordance with the requirements of the Act, and in particular its Section 11, I, the undersigned, attest that I have reviewed the information contained in the report for TotalEnergies Marketing Canada Inc. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year identified above. I have the authority to bind TotalEnergies Marketing Canada Inc. Olivier Gauthier May 26, 2025 | This joint report was approved by the the board of directors of TotalEnergies Marketing USA, Inc. pursuant to subparagraph 11(4)(b)(i) of the Act. In accordance with the requirements of the Act, and in particular its Section 11, I, the undersigned, attest that I have reviewed the information contained in the report for TotalEnergies Marketing USA, Inc. Based on my knowledge, and having exercised reasonable diligence, I attest that the information in the report is true, accurate and complete in all material respects for the purposes of the Act, for the reporting year identified above. I have the authority to bind TotalEnergies Marketing USA, Inc. Franck Bagouet May 26, 2025 |
1 - The Code of Conduct is available in 18 languages.
2 - The Sustainability & Climate Division reports to the President of Strategy & Sustainability, who sits on TotalEnergies SE’s Executive Committee.
3 - For any new industrial project likely to have significant impacts on stakeholders, a Societal Baseline Study (SBS), an Environmental and Social Impact Assessment (ESIA) and/or a Social Impact Study (SIS) is conducted to identify the impacts of the activities or project on potentially affected stakeholders. Human Rights Impact Assessments (HRIAs) are also conducted, where appropriate.
4 - Based on the UNGPs, TotalEnergies’ internal framework (Management and Expectations Standards Toward Robust Operations - MAESTRO) requires TotalEnergies’ subsidiaries to deploy procedures to manage stakeholder grievances related to their activities (excluding business claims).