A French court has issued a landmark ruling ordering energy giant TotalEnergies to account for its clients' emissions in the company's climate plan. This marks the first application of France's Corporate Duty of Vigilance law to climate change, following litigation brought by environmental NGOs including Notre Affaire à Tous.
The court ruled Thursday that the company failed to fulfill its vigilance duty regarding the full scope of greenhouse gas emissions across its supply chain. The decision specifically targets indirect "Scope 3" emissions — those from customers burning its products — which constitute the vast majority of TotalEnergies' contribution to dangerous warming.
Under the ruling, TotalEnergies must integrate these client-generated emissions into its climate strategy and risk assessment. The financial implications are significant, as the company may face increased compliance costs and potential liability for emissions it previously excluded from formal plans.
The decision sets a precedent for corporate climate accountability in France and potentially across Europe. It aligns with the Paris Agreement's push for comprehensive emissions accounting, though its ultimate impact depends on enforcement and whether the ruling survives appeal.
TotalEnergies has not yet indicated whether it will appeal the ruling. The case could influence similar litigation in other jurisdictions that are exploring corporate duty of care laws for climate impacts.