In Q1 2025, TotalEnergies earned $4.2 billion in adjusted net income and $7.0 billion in cash flow from operations. Revenue dropped to $47.89 billion from $51.88 billion a year earlier. However, the company held firm because of strong oil and gas output and steady LNG profits, and more interestingly, its carbon credits investment.
The report revealed that production rose 4% year-over-year, averaging 2.55–2.57 million barrels of oil equivalent per day. New output from Brazil, the U.S., Malaysia, Argentina, and Denmark helped drive this growth. Gas prices stayed high, partly balancing weaker oil prices.
Power and LNG Boost TotalEnergies Amid Refining Woes
The LNG business posted $1.3 billion in adjusted net operating income. While LNG trading met expectations, gas trading struggled due to Europe’s volatile markets and geopolitical tensions.
Power operations also grew. The segment generated over $500 million in income and $600 million in cash flow. Key deals, like acquiring Germany’s VSB and investing in battery storage, supported this growth.
Still, downstream operations faced headwinds. Weak refining margins and issues at French and U.S. facilities cut into profits. Petrochemical and biofuel margins in Europe also declined, adding pressure.
Carbon Credit Spending Hits Record High
TotalEnergies spent $2 million on carbon credits in Q1 2025. That’s double what it spent in Q1 2024. This massive spending aims to cut emissions and reach its net-zero target by 2050.
Robust Backing for Nature-Based Projects
A significant segment of its investment supports nature-based solutions like forest protection, regenerative farming, and wetland conservation. By the end of last year, TotalEnergies had collected 13.7 million verified carbon credits. Each year, the company plans to invest $100 million in carbon projects.
- Between 2025 and 2030, TotalEnergies will build a stock of 50 million carbon credits.
- These projects can potentially deliver at least 5 million metric tons of CO₂e credits annually by 2030.
- From 2030, the company will start using high-quality carbon credits to offset its remaining Scope 1 and 2 emissions.
The aim is to build a strong portfolio of trusted projects that support global rules and ensure the credits are real and long-lasting. Additionally, the company expects these projects to bring long-term environmental and social benefits.
- It expects to reach 37 million verified credits by 2030 and 53 million by 2050. These projects could also generate $770 million for local communities.
$100 M Deal with Anew Climate and Aurora Sustainable Lands
TotalEnergies signed a $100 million deal with Anew Climate and Aurora Sustainable Lands last year. The project protects 300,000 hectares of forests across 10 U.S. states—Arkansas, Florida, Kentucky, Louisiana, Michigan, Minnesota, New York, Virginia, West Virginia, and Wisconsin.
This partnership supports sustainable forest management and boosts the forests’ ability to absorb carbon. It also helps local communities by improving land use and preventing environmental damage. The carbon credits generated help offset the company’s remaining emissions.
What Makes Total Energies the Top Net-Zero Player
Last year, the LNG giant launched the “Our 5 Levers for Sustainable Change” initiative. The goal was to engage all employees in reducing emissions by boosting energy efficiency and adopting low-carbon technologies across its operations.
GHG Emissions Fell in 2024
The company cut emissions from operated sites by more than 36% in 2024 compared to 2015. Notably, over 200 emission-reduction projects helped slash 1.3 million tons of CO₂e.
However, recently the company raised its 2025 emissions goal to 37 Mt CO₂e per year. It aims to cut net Scope 1+2 emissions by 40% by 2030 (vs. 2015 levels). This also includes using 5 million carbon credits from nature-based projects, as explained before. Subsequently, these offsets will be used only for residual emissions from 2030 and consumed gradually at about 10% per year.
By end-2024, TotalEnergies had invested around $750 million in emissions reduction. These investments save 1.5 Mt CO₂e each year and cut energy costs by over $100 million annually.
However, emissions from flexible power generation rose slightly. This happened due to the addition of combined-cycle gas turbines (CCGTs) in the U.S. and U.K., which support TotalEnergies’ low-carbon electricity expansion.
Still, overall emissions dropped 25% from 2015 levels.
- The carbon intensity of upstream oil and gas assets also fell from 21 kg CO₂e/boe in 2015 to 17 kg CO₂e/boe in 2024.
All these figures make TotalEnergies one of the top industry performers.
Scope 3 and Scope 4 Emissions
In 2024, TotalEnergies helped reduce global emissions by 65 million tonnes of CO₂e through LNG sales, as many customers replaced coal with gas for power generation. Although gas increases Scope 3 emissions, it enables cleaner energy and avoids more emissions overall. These are classified as Scope 4 emissions.
The company also avoided 18 million tonnes of CO₂e in 2024 and is aiming for 150 million tonnes of emissions by 2030. This makes 90 Mt from LNG and 60 Mt from renewables while keeping Scope 3 emissions below 400 Mt.
Methane Emissions Drop Drastically
Methane emissions dropped from 64 kt in 2020 to 29 kt in 2024—a 55% cut. TotalEnergies beat its 2025 target early and now aims for a 60% cut by 2025, and an 80% cut by 2030 compared to 2020.
Digital Tools Boost Efficiency
The company is using digital tools to cut emissions smartly. In Exploration & Production, the ForCFR app links carbon forecasts with oil and gas output. In Angola, it helped cut 179 kt CO₂e annually by optimizing well operations.
Another example is: at the Normandy, Donges, and Feyzin refineries, the CarbOptim app tracks energy use in real-time and helps cut steam and energy waste.
2025 Carbon Intensity Reduction Target
TotalEnergies has raised its 2025 carbon intensity reduction target from 15% to 17%, aiming for a 25% emission cut by 2030. That means delivering the same energy with fewer emissions, or more energy with the same carbon footprint. Most of the progress will come from boosting clean electricity, cutting oil use, and growing gas and bioenergy.
Joins Google for Clean Energy
In January 2025, TotalEnergies teamed up with Google Europe to help power its Dutch data centers with 24/7 clean electricity by 2030. They’ll combine Google’s green power deals and add battery storage to handle renewables’ ups and downs. Similar deals are already in place with U.S. tech firms
Switch to Low-Carbon Power by 2025
TotalEnergies aims to power all its refining and chemical sites in Europe and the U.S. with 100% low-carbon electricity by 2025. This target will be achieved through initiatives like the Go Green project in Port Arthur, Texas.
- Additionally, last year it achieved 26 GW of gross installed renewable electricity capacity, targeting 35 GW by 2025 and reaching 100 GW by 2030.
With this progress, TotalEnergies plans to become one of the top five global producers of renewable electricity (wind and solar), excluding Chinese companies.
Latest Projects
In April 2024, TotalEnergies started the Marsa LNG project in Oman. The plant will run on power from a 300 MW solar farm and emit less than 3 kg CO₂ per barrel of oil equivalent.
Also, the company approved the GranMorgu oil project in Suriname.
This all-electric project will use advanced tech to cut emissions below 16 kg CO₂ per barrel of oil equivalent.
Additionally, it aims to:
- Become a key producer of Sustainable Aviation Fuel (SAF), targeting 1.5 million tonnes annually by 2030.
- In 2024, the company’s gross biomethane production capacity rose to 1.2 TWh per year
Hydrogen Plans Take Shape
This is part of its long-term plan to decarbonize its operations and energy products.
TotalEnergies is expanding its clean hydrogen portfolio with multiple projects across Europe. In France, it’s building biohydrogen units at La Mède and Grandpuits refineries with Air Liquide, targeting annual CO₂ cuts of 130,000 and 150,000 tonnes respectively.
In the Netherlands, a 250 MW offshore wind-powered electrolyser in Zeeland will supply 30,000 tonnes of green hydrogen from 2029, reducing refinery emissions by 300,000 tonnes yearly.
Furthermore, tolling agreements in Belgium and France will see Air Liquide operate electrolysers in Antwerp (130 MW) and Normandy (100 MW), each producing 15,000 tonnes of hydrogen annually and cutting 150,000 tonnes of CO₂ per site by 2027.
Despite market challenges, TotalEnergies continues to invest in clean energy and climate action. Its rising carbon credit purchases highlight how big energy players are using voluntary carbon markets to decarbonize. Thus, its role for a lower-carbon future is of utmost significance.
The post TotalEnergies Boosts Carbon Credit Investment as LNG, Renewables Drive Q1 Gains appeared first on Carbon Credits.
Most businesses that decide to act on their net-zero targets reach the same point of friction. Buying carbon credits has meant tracking down brokers, sitting through sales calls, and requesting a quote just to learn a price, sometimes with limited proof of what you are buying.
The earnings calls that quietly reframed climate from sustainability question to operating risk.
Three earnings calls in the last 18 months tell the story without any help from a press release.
Hershey, May 2024: cocoa price exposure compresses margin, and the company attributes part of the cost shock to West African weather. Olam, July 2024: coffee climate exposure quantified in the annual report. JBS, January 2025: supply chain climate disclosures expanded materially in response to investor pressure and regulatory expectation. None of these companies issued the announcement as climate news. They issued it as financial news. The climate-linked supply chain risk did not arrive with a sustainability framing; it arrived as a P&L line.
You are probably reading this article because you suspect the same thing is happening to your business. This piece walks through what is showing up on which earnings calls, how procurement and finance leaders are quantifying the exposure, and what serious corporates are doing about it before the regulator asks.
Where climate risk has already appeared in earnings
The pattern is consistent across resource-intensive sectors. A weather event compresses supply, the price spikes, the cost flows through the income statement, and the analyst on the call asks whether the event is anomalous or structural. Increasingly, the honest answer is the second one.
Cocoa is the cleanest example. The 2023 to 2024 West African harvest fell sharply on the back of erratic rainfall and disease. Cocoa futures more than tripled. Companies with concentrated West African sourcing absorbed the cost; companies with diversified sourcing absorbed less. The exposure was not climate as ESG topic. It was climate as cost of goods.
Coffee follows the same pattern. Brazilian and Vietnamese harvests have moved on weather more sharply across the last several seasons. Roasters with long-tenor supplier relationships and origin diversification have managed the volatility; roasters with spot-market exposure have not. Wheat, sugar, palm oil, beef: the same dynamic in different commodities, a pattern the IPCC AR6 Working Group II report projects will intensify across agricultural systems through mid-century.
What this means: climate risk is no longer a footnote in the 10-K. It is a line item the CFO has to explain on the call.
The three commodity exposures that hit margin first
For most companies with material Scope 3 exposure, three exposures dominate the near-term P&L risk.
- Concentrated single-origin sourcing in a climate-vulnerable region. If your tier-one supply for any material commodity sits in one geography, you have a concentration risk that climate amplifies. Diversification across origins is the obvious hedge, but it takes years to build and requires relationships you cannot acquire by tender.
- Supplier financial fragility under climate stress. Smallholder farmers, who supply a large share of the global cocoa, coffee, and palm oil market, do not carry the balance sheets to absorb yield shocks. When yields collapse, they exit. When they exit, your supply base shrinks, and the surviving suppliers raise prices. The risk is structural, not cyclical.
- Logistics and storage exposure to extreme weather. Hurricane disruptions to Gulf shipping, drought-driven Panama Canal restrictions, flooding in European inland waterways: each of these has moved input costs in the last three years, a pattern documented in Munich Re’s natural catastrophe data. The exposure shows up as a one-quarter event in the financial press but accumulates over time on the cost line.
TCFD and ISSB disclosure changes
The disclosure architecture has now caught up with the risk. The Task Force on Climate-related Financial Disclosures, whose recommendations are now embedded in the ISSB’s IFRS S2 climate standard, requires companies to disclose climate-related risks across physical and transition categories, with quantification where possible.
For physical risk specifically (the climate-linked supply chain risk you are reading about), the disclosure must address both acute exposures (extreme weather events) and chronic exposures (gradual changes in temperature, precipitation, and growing seasons). The disclosure must address the time horizon over which the risk is material, the parts of the value chain exposed, and the financial impact under different scenarios.
The CSRD imposes similar requirements under European law, with double materiality (both financial and impact materiality) embedded in the assessment. The practical effect: your auditors and your investor relations team now need a defensible answer to the climate-linked supply chain risk question, and the answer needs to be quantified.
What procurement and finance can do now
Three actions matter near-term.
Map your exposure. Most companies do not have a clear view of which tier-one and tier-two suppliers sit in which climate-vulnerable geographies. Without the map, you cannot quantify the risk, and without the quantification, you cannot disclose it credibly. The map is the foundation, and World Resources Institute climate risk research provides useful public tooling to start.
Diversify and deepen, in that order. Diversification across origins reduces concentration risk, but the deeper move is to invest in the resilience of the suppliers you already have. Regenerative practices, agroforestry, soil health interventions: these reduce yield volatility under climate stress and protect your input cost trajectory.
Embed the climate spend inside procurement, not outside it. Treating climate risk as a sustainability cost line subordinates it to the ESG budget. Treating it as a procurement and resilience investment puts it in the budget that matters, which is the cost-of-goods budget that the CFO defends quarterly.
Nature-based supply chain investments are the asset class designed for exactly this purpose. They sit inside the value chain, they reduce climate-linked supply risk, they generate verifiable Scope 3 reductions, and they produce the documentation an auditor and a regulator can both test.
If you are quantifying climate-linked supply chain risk in advance of the next earnings cycle or the next disclosure period, the carbon and sustainability experts at Carbon Credit Capital can help you map your exposure and structure a Dual-Value Model response that addresses reduction, resilience, and disclosure-readiness in a single program. Schedule a consultation.
More and more small and medium-sized businesses are hearing the same question from their larger customers: What is your carbon footprint? That question now travels down entire supply chains, and it arrives next to tender requirements, certification criteria, and rising customer expectations.
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