total nigeria plc sustainability report 2015

2015SUSTAINABILITYREPORT

Sustainable Impact Through Better Energy

STATISTICS

N5m

1

1 30

100%

st

st

new service stations across Nigeria

solar powered station in Nigeria

Over

Met and exceeded Awango by Total Solar Lamp

target in May 2015

520 retail outlets

ISO Certified serviceStation in Nigeria

MESSAGE FROM OUR CHAIRMAN

DRIVING SUSTAINABILITY AT TOTAL NIGERIA PLC

2015 SUSTAINABILITY PERFORMANCE AT TOTAL NIGERIA

SUSTAINABILITY REPORTING AT TOTAL NIGERIA

PRIMARY FOCUS I: CUSTOMER SATISFACTION

PRIMARY FOCUS II: EMPLOYEE HEALTH &SAFETY

PRIMARY FOCUS III: STRONG ECONOMIC PERFORMANCE

PRIMARY FOCUS IV: CORPORATE CITIZENSHIP

PRIMARY FOCUS V: ENVIRONMENTAL PERFORMANCE

CO

NT

EN

TS

21

62

29

35

913

3754

CONTENTS

OUR CHAIRMAN’S MESSAGE

MOMAR NGUERChairman, Total Nigeria Plc

SUSTAINABILITY REPORTING AT TOTAL NIGERIA | 2015

1

COMMITMENT TO BETTER ENERGY

As a very visible part of our commitment to better energy, safety is consistent with our ambition of the sustainable development of our businesses.

Momar NguerChairman, Total Nigeria Plc

Sustainability is the mainstay of any forward looking business in today’s world, and a crucial aspect of that philosophy for us is engagement of the communities with whom we work.

Total Nigeria's Corporate Social Responsibility (CSR) strategy is focused on Citizenship, Human, Societal and Local Economic Development, Access to Energy, Education and the Environment. For Total, being responsible means better control of our activities to reduce the negative impacts they may have on people and the environment by adapting preventive technologies and entering into constructive dialogue with our stakeholders. This helps us to better understand our stakeholders' expectations, and where legitimate, work in harmony with the stakeholders to meet these expectations. CSR also means for Total, going beyond our purely business objectives and investing in the growth of our communities. These help us realise our vision of working for shared values and development!

Our societal strategy include initiatives undertaken by Total in order to better integrate its activities into the societal context of our host communities notably by contributing to their human, economic and social development. It helps to create measurable and lasting value for stakeholders. This presupposes our CSR initiatives must be implemented in a climate of respect, listening, continuous dialogue and transparency with our stakeholders.

We believe that the role of businesses in the sustenance of the society is very crucial; we, therefore, endeavour to carry our actions sustainably in our communities with greater transparency and inclusiveness. As a responsible citizen, we consider the environmental, economic as well as social aspects that are most important to our key stakeholders and that impact our business.

As a multinational organisation, we adhere to international best practices and ensure quality and standardisation in all our operations and production processes. This covers our depot operations, our plants activities, and extends to quality service delivery at our over 500 service stations spread across Nigeria.

In accordance with our eco-environmental consciousness,

the Company embarked on a campaign of upgrading our

service stations across Nigeria. Remarkably, we built the

first 100% solar powered service station in Nigeria at our

Onigbagbo Service Station Ikeja, Lagos followed by Wuse

Zone 6 service station in the Federal Capital Territory,

Abuja.

As an energy company poised to continually research into

the needs of our customers and ensure satisfaction, we

recently launched ourSolar Home Solution (SHS). The

SHS is a green and clean alternative energy solution to

Industries, homes and businesses. This is in addition to the

Awango by Total solar lamp which has made tremendous

impact on the homes of average Nigerians. Since its

introduction in 2012 into the Nigerian market, the lamp has

fast become a household name, meeting the basic clean

energyrequirement of Nigerians.

We make bold to say that despite stringent economic

conditions, the Company has stayed well afloat with

sustained good performance indicators and confidence on

the part of our shareholder. Our market share of 13.5%

ensures our leadership position is intact. Our fixed

operating cost target of 2015 was met and shareholders

confidence was maintained.

As a very visible part of our commitment to better energy,

safety is consistent with our ambition of the sustainable

development of our businesses. It is noteworthy to mention

that in 2015, the Company's Total recorded Injury rate was

zero, a result of the commendable performance from all

stakeholders supported by the Company's 12 golden rules

and stop card safety initiatives.


2

We remain focused and committed to customer satisfaction,

quality service delivery, stakeholder inclusiveness and

commitment to safety and the environment, as we stay

committed to better energy! Momar NguerChairman, Total Nigeria Plc


3

OUR MANAGING DIRECTOR’S STATEMENT

At Total, we ensure strict adherence to policies and

procedures especially in relation to Corporate Social

Investment which is a crucial aspect of the Company's

corporate governance.

The Corporate Governance Committee, a sub-committee of the Board, reviews the sustainable development actions of the Company based on locally applicable policies and in accordance with international best practices. These reviews are then implemented with the necessary groups/bodies as recommend.

The Company in drawing up its Corporate Social Investment initiatives, engages in wide consultations with key stakeholders which include but not limited to: Shareholders, communities, businesses, civil society and government agencies etc. The objective is to implement actions that will directly address the needs of our stakeholders and have positive impact on our business. In designing our CSI actions, we endeavour to integrate our stakeholders concerns in an atmosphere of respect, transparency, listening and continuous dialogue; a critical aspect of our strategy.

The Company has standing committees in the communities where it exists. Issues affecting the parties are regularly discussed at these meetings at fixed intervals, mostly quarterly; solutions are proffered, and action plans drawn up and implemented based on the decisions jointly reached. Other similar stakeholder engagement fora are the Customer forum, shareholders periodic meetings, Annual General Meetings, press conferences, student's educational fairs, etc. These levels of engagement guarantees mutual coexistence and harmony between the Company and our stakeholders.

Deriving from the stakeholder engagements, we were able to draw up targeted CSI actions to address

identified needs of our stakeholders ranging from Social to Youth and Local economic development concerns. Some of the educational initiatives include our Total Job Shadow program aimed at exposing senior secondary schools students to an actual work environment to guide their career decisions; the Total Graduate internship program (GIS) aimed at harnessing talents and ensuring job placements at the end of the scheme, the Scholarship scheme aims at providing educational support for students of our host communities.

Among the economic initiatives are the Total Skills acquisition program for youths where capacity building on their choice vocation is provided for youth from our host communities. These youth are fully set up to operate their own Small Scale Businesses to directly impact their communities at the end of their one year sponsored training; The Awango Resellers SME program (ARSMEP) where some community members are economically empowered to become resellers of the Awango by Total Solar lamps.

Our health initiatives include the HIV/AIDS campaign, an annual preventive education campaign on HIV/AIDS where the Company donates comprehensive HIV/AIDS screening equipment to identified government health facilities of the beneficiary state. It also creates awareness among the public on preventive measures of HIV/AIDS alongside free two weeks HIV/AIDS Testing Services (HTS). The initiative is targeted to reach all states of the Nation; to date, 18 states have been covered including the Federal Capital Territory, Abuja. Our Malaria initiative addresses the Malaria preventive health and other wellness activities of our communities as well as that of employees. These health programs are implemented in synergy with our sister Company, Total E&P.

The Company also has a social program where it directly sponsors three houses at the SOS Children's Villages in Nigeria, paying fully for the Tuition, Feeding and Clothing of all 30 children annually. Alongside that is the Mentor-a-Child-Programme where members of staff serve as mentors to each

The objective is to implement actions that will directly address the needs of our stakeholders and have positive impacts on our business.

Alexis Vovk Managing Director


4

of the sponsored children, impacting these children like they would, theirs.

Besides the Company's statutory annual corporate donation to 20 charitable organizations, it also embarks on spot donations in support of other charities and causes.

The Total Lead Dealership Scheme is a program aimed at economically empowering our young station attendants to become dealers and business owners, having grown through the ranks of our forecourt business.

Similar to the above is the Startupper challenge initiative of the Company where three young entrepreneurs at the end of the day will emerge as winners and get the lifetime opportunity of becoming achieved entrepreneurs via a contest vetted by high level jury members comprised of seasoned Nigerian business entrepreneurs.

Safety being a crucial and visible aspect of the Company's sustainable development, goes a long way in reemphasizing our commitment to better energy. Some of our safety initiatives include the Road safety program for school children aimed at ensuring safer roads for the Nigerian kid; we also have the Total Truck drivers training school and Track center located in Ibadan which provides practical and safe drivers training sessions, not only for Total truck drivers, but to all Nigerian drivers who may require the training.

Suffice to say that our commitment to better energy is all encompassing as we aim to energize lives of Nigerians, every day with our Corporate Social Investment actions.

Alexis Vovk Managing Director, Total Nigeria Plc


5

Over the years, Total Nigeria has often reiterated its commitment to better energy and better lives through its non-financial reports. This annual Corporate Social Responsibility report has often served as a testament to the impact Total has made in the lives of many, and as such, has typically focused on social investments. However, in recognition of the need for more transparent and standardized reporting, we have elected to adopt the Global Reporting Initiative (GRI) G4 framework, simply because we want to report on what matters, where it matters and to whom it matters.

Whilst in 2014, we attempted to increase the scope to include stakeholder relationship management and environmental concerns along with our community development initiatives, we have written the 2015 report spanning from January to December guided by the principles of the Global Reporting Initiative G4 framework. In doing so, you can expect that this report shows a true reflection of our most critical stakeholders' concerns, discovered through extensive stakeholder engagement, and our responses as a business.

While we understand the importance of accountability and transparency, we have been limited in our ability to assure the report this year, but are hopeful that future reports might contain comprehensive Assurance statements.

This report will, therefore, showcase our growth across economic, social and environmental metrics, and across various bases of operations, all within Nigeria.

For more information on our sustainability journey, all enquiries should be directed to:

Albert MabuyakuCorporate Affairs ManagerTotal Nigeria PlcTotal House4, Churchgate StreetVictoria Island, [email protected]

SUSTAINABILITY REPORTING AT TOTALScope and Boundary


6

Alexis Vovk Managing Director

EXECUTIVE COMMITTEE AT TOTAL NIGERIA PLC

Momar NguerChairman

Wilfred Konde Executive Director

(Finance & Development.)

Bunmi Popoola-Mordi GM (Human Resources & Corporate Services/Company Secretary)

Femi Babajide GM (Sales & Marketing)

Olagoke AlukoGM (Operations)

Rabiu Abdulmutalib GM (Health Safety Environment

& Quality Division)

Viken NajarianSpecialty Project Manager

Jeff NnamaniED (Strategy)


7


8

car maintenance and care, solar products sales, and energy home solutions.

Over the course of the reporting year, we took advantage of opportunities to optimising growth by growing our operations to accommodate 30 new service stations, with 204 stations undergoing alterations and maintenance, and 10 stations closed. The resulting increase in efficiency served to boost our market penetration and further validated our leading position in the industry.

Over the course of 50 years, Total Nigeria Plc (RC 1396) has built its reputation as the market leader in the downstream sector of the Nigerian oil and gas industry. As a marketing and services outlet of the Total Group which has operations in over 130 countries, Total Nigeria has maintained its commitment to creating better lives through cleaner energy, more so after a successful merger in September 11, 2001. The share capital of the company after the merger is presently N169,761,000 made up of 50,000 ordinary shares authorized and fully paid up, with Nigerian Citizens, Associations, and others holding 38.28% of the share capital.

Our presence across NigeriaHaving become the trusted provider nationwide, Total Nigeria Plc (Total Nigeria) has expanded into the Eastern, Western and Northern territories of Nigeria. Our various operations span across the following states Abuja, Kaduna, Kano, Port-Harcourt, Benin, Lagos North, Lagos South and Ibadan.

Optimising opportunities for growthAt Total Nigeria, customer satisfaction remains a core focus of our sustainability drive. Our customers (consisting of the private, corporate and industrial sectors) are, therefore, treated to a wide range of quality products and services. These include petroleum products, LPG, lubricants, car products, insecticides, shopping at café Bonjour shops, e-shop, Total Card, premium

Total Nigeria at a GlanceDownstream Industry Leader

500 19Service Stations Customer Service

Centers

·5 depots

· Distribution plants and warehouses

· Cafe Bonjour

· Auto Express and Auto Clean Deluxe

services

· 3 Lubricant Blending Plants

· 5 LPG bottling plants

Industrial Outlets

ABUJA

BENIN

LAGOS LAGOSNORTH SOUTH

IBADAN

PORT-HARCOURT

KADUNA KANO


9

DRIVING SUSTAINABILITY AT TOTAL NIGERIA PLC

COMMITTED TO SUSTAINABLE DEVELOPMENT

We are in business to ensure total customer satisfaction by the creation of quality products and services with a strong commitment to safety and respect for the environment and the sustainable development of resources!

This objective drives all our corporate actions and the mutual acknowledgment of them by our partners forms the basis for our business relationships.

To sustain this objective, our commitment is to constantly strive to improve our productivity so as to build and sustain a work culture that is firmly rooted in professionalism, respect for employees, internal efficiency and dedicated service.

Mission

· Health, Safety and Environmental Protection: All staff and the company's associates must place this value above all other considerations in their daily activities

· Diligence and professionalism: This company believes in consistent hard work and commitment to duty which must be performed with the highest professional standards

· Respect for employees: Patience, tolerance and understanding of each other's beliefs, opinions and differences is at the heart of this corporate value

· Loyalty: Employees are expected to protect, defend and enhance the company's image and reputation. Loyalty implies commitment to the company's objectives

· Integrity: High premium is places on the personal integrity of employees. All staff must therefore avoid situation that may create conflicts between their personal interest and those of the company

Core Values With a passion to create better lives through innovative and cleaner energy solutions, we inculcate the values of:


10

We maintain the highest level of commitment to ethical business practices across our operations, whilst holding all our stakeholders – internal and external – accountable to these standards.

In addition to the Code of Conduct, Anti-corruption Policy, and HSEQ Policy which are intermittently reiterated to our stakeholders on diverse platforms of engagement, 2015 saw the commissioning of the 'Complaints Management Policy' implemented in compliance with the Securities and Exchange Commission (SEC) Management Framework of the Nigerian Capital Market rule no. 10 (a) relating to complaints handling.

The policy – which has been approved by the highest level of governance ( the Board) has been adopted as an internal procedure. It has been designed to minimize damage to our reputation and reduce the risk of litigation by handling complaints from our shareholders or investors in a timely, effective and consistent manner.

COMMITTED TO BUSINESS ETHICS

...and to Strong Corporate Governance

Total Nigeria maintains a responsible attitude towards corporate governance. Thus, in line with international best practice and established codes of conduct, the Board of Directors at Total Nigeria have established committees comprising top level of executives to monitor our activities across board.

Board of DirectorsChairman

Managing Director

Corporate Governance Committee

Diversity Committee

Audit Committee


11

Total Nigeria Plc entered in 2015 for the Adam Smith Best in Class Treasury Solution in Africa

Award 2016 and emerged overall winner.

For the organisers of the award, Treasury Today, “The Adam Smith Awards are the ultimate industry benchmark for achievement in Corporate Treasury. The standard for the submissions was of very high level with 219 nominations spanning across 19 countries”.

This laudable achievement clearly stands Total Nigeria plc out as an organisation with a seasoned crop of teams that possess in-depth knowledge of their field of expertise, especially in Corporate Treasury and Information Systems.

While nominating Total Nigeria Plc for this year's award, Citi Bank acknowledged that “Treasury Today's Adam Smith Awards is the largest corporate treasury awards programme and recognises the very best and brightest in the industry. The panel of judges again looked for solutions that truly demonstrated exceptional best practice and innovation in the corporate treasury arena. Now in its ninth year, an Adam Smith Award is the ultimate industry benchmark for corporate achievement...”

Total Nigeria Plc indeed came out tops, truly demonstrating exceptional best practice and innovation with its E-bills / Auto-Receipting solutions implemented in 2015.

Total Nigeria Plc, along with Citibank, as her nomination partner on this award will be presented with the Adam Smith Crystal award at a Gala Presentation Lunch on

thThursday 16 June, 2016, at Gibson Hall in London.

The team has this to say on the award and what it means to them.

The Adam Smith Best-in-Class Treasury Solution in Africa Award

Mr. Wilfried Konde, Executive Director (Finance and Development):

“The award certifies that in Total Nigeria in general and especially in the Finance Division, we have talented, innovative, cross-functional and dedicated staff. It is an international recognition which we are very proud of. We have worked very hard to develop this solution that resulted in material savings for the company, that strengthens the internal control and that simplifies our cash management process. The award is also an incitement to continue the innovation journey. Congratulations to my team. I am so proud of leading such a team”.

Mr. Ajose, Treasurer:

“This is an innovation and best practice Award. It is adapting technology to best performance. Apart from classifying the Treasury of Total Nigeria Plc top on industry benchmark, the implementation of the projects has proven to be of immense benefit to Total Nigeria Plc. To me, it is a dream come true. Congratulations to all members of my team”.

Mr. Ola Abiose, Information Tech. Manager:

“This indeed is a result of hard work, determination and meticulous planning, a synergy of technology and performance for enhancement of business processes. I feel quite fulfilled to see the joint efforts from our teams yield desired results and being recognized as best practice. I like to say congratulations to my team for this outstanding and innovative project. Together, we won”.

We have talented, innovative, cross-

functional and dedicated staff.

The implementation of the projects has

proven to be of immense benefit to

Total Nigeria Plc.

I feel quite fulfilled to see the joint efforts

from our teams yield desired results

andbeing recognized as best practice


12

At Total Nigeria, our ultimate goal is to balance the economic, social and environmental impacts of our operations to create shared value for all our stakeholders. In our efforts to do this, we have hitherto focussed on our CSR initiatives to achieve this, but in 2015 we adopted a more holistic strategy that was premised on extensive stakeholder engagement. Through this, we were able to identify crucial needs in each out of priority pillars, and as such, attend to them over the course of the reporting year. While we still have quite a way to go, we are more than proud that we have already made ample progress and we look forward to more robust engagements and positive milestones in the years to come.

Citizenship: human & societal development

ŸTo achieve zero fatalities and recordable rate of industry in all our facilities and operations ŸTo create shared values across communities within which we operate

Ÿ Employee health & safety

Ÿ Corporate citizenship

Ÿ Strong

economic performance

Ÿ Entrepreneurship & SME support

Ÿ Customer satisfaction

Ÿ Managing climate for cleaner energy

Ÿ Improvement in the supply of production input

Ÿ Optimisation of suppliers systems to favour operations

Ÿ Improvement in the quality of supplies and reduction in rejects at the production plant

Ÿ Staff to undergo HR Forum and career interview

Ÿ Increased engagement with local communities

Ÿ Improve on payment plan to suppliers

Ÿ Injection of newer trucks to the fleet.

Ÿ Reduction of accidents through the deployment of HSEQ parameters – drivers training, Installation of speed limiters on trucks and No-Night-driving policy to be implemented

Ÿ Build customers' perception of Total Nigeria by responding promptly and adequately to customers' needs

Ÿ Increased reach of Total's Awango Lamps to 1 million sales

Ÿ Ensure provision of production moulds as necessary to improve rate of supplies

Ÿ Provision of adequate leak testing equipment for plastic

Ÿ Prompt delivery of orders

Ÿ Adequate and prompt supply of inputs

Ÿ Achievement of a favourable trading year; improve on the share capital of the Company stock in the stock market

Ÿ Maximization of our market share in each customer site

Ÿ Increase field presence in the customers/business sites by trade executives by 25%, introduction

Ÿ Implementation of e-fuel platforms to optimize the ordering process

To confront new challenges & maximize new opportunities in the industry within which we operate

ŸTo meet the needs of our stakeholders in a responsible way while controlling our activitiesŸTo reduce the negative impacts our activities may have on the people and the environment

Local economic development

Access to better energy and cleaner environment

FOCUS AREA PRIORITIES 2016 TARGET COMMITMENT 2015 KPIS/ACTIONS

Our Sustainability Approach 2015 SUSTAINABILITY PERFORMANCE AT TOTAL NIGERIA


13

Total Nigeria is very proud to have made history in 2015 by having the first ISO Certified Service Stations in Nigeria. The Western Avenue station and the first solar powered station in West Africa, Total Service Station, Onigbagbo received the ISO 14001:2004 Standard certification by the Standards Organisation of Nigeria (SON). This is of particular importance to us because we are solely committed to conducting our business in a manner that is safe for our employees, neighbours, stakeholders and the environment. Being ISO 14001:2004 certified, is an indication that we are committed to controlling and continually reducing our impact on the environment, particularly through our structured world-class framework and processes.

More so, we do our best to comply with local and international HSEQ policies. As such, we are able to align our practices with statutory requirements by carrying out systematic analysis of the impact of our activities on the environment and our neighbouring communities; establishing and documenting relevant health, safety, environment and quality procedures; training employees, service station staff, drivers, transporters and customers on HSEQ standards; carrying out HSEQ audits at all our facilities with proper corrective actions taken to close identified gaps; evaluating environmental performance and taking appropriate actions to continually improve performance.

Our long term plan is to expand the scope of stations certified to the ISO14001 standard every two years. This illustrates our commitment to improved environmental performance.

In all other areas of our business, we have demonstrated that we are focused on building consumer trust and satisfaction now and in the future.

2015 PERFORMANCE HIGHLIGHTS

1. Winner, e-voting contest & most socially responsible company in the online categoryThe Social Enterprise Report & Awards (SERAs)

2. Most innovative customer service company in the oil & gas category Nigerian Customer Service Awards

3. Recognition for donations and sponsorships: The Nigerwives Braille Award

Nigerian Employers Consultative Association (NECA):In addition to the position of The Managing Director of Total Nigeria as a member of the governing council of NECA, we are committed to paying an annual subscription

Major Oil Marketers Association of Nigeria (MOMAN): Our strategic membership with MOMAN allows us to leverage on the platform and stay up to date on national policies and regulations

Nigerian Business Coalition Against AIDS (NIBUCAA)

Associations and Memberships Awards


14

WHAT IS PATROM? Translated as ''Overseas Road Transport Improvement Program” – is a document established in 2003 to unify the process of Total Transportation Operations in a manner that considers Human Health, Safety, Environment & Quality as paramount priorities to Customer Satisfaction.In 2013, Patrom became the reference document for Total Affiliates in AME, AMO as well as AP. Europe has generally had a consistent Guideline of Transport under the ADR Scheme.

Also Patrom symbolizes a continuous process in the quality Spiral below,· The CHECK involves self assessment· The Act is to take all necessary measures· To launch the Plan is to have “Transport Action Plan – TAP”· The DO is to ensure that all plans are implemented.

All affiliates within the perimeter of AMO which Nigeria belong to are to integrate into the PATROM procedure, irrespective of whatever level of maturity of their Transport policy.

Therefore, Total bases the selection of Transporters base on their ability to comply with its policy on PATROM.

PATROM COMPONENTSBelow are the key levers of PATROM with few pointed highlights;

1. LEADERSHIP/MANAGEMENT. Commitment and involvement of the Affiliate's management: management at all levels must engage in the deployment of PATROM Definition and monitoring of the objectives by the Affiliate's Management: the MD of the Affiliate sets yearly transport objectives, independently of the annual performance interview Management Review of the Transport activity: a management review meeting to monitor the objectives and execution of the action plans must be conducted at least twice a year.

2. TRANSPORT MANAGEMENT Role of the Transport Manager and scope of activity: MD ensures that the Transport Manager (Distribution Manager) is able to accomplish his tasks and carry out his mission, and in particular that he can exercise control over all transport-related activities carried out by the company Training of Transport Manager: Transport organization staff must follow a training program suited to the needs of their functions, and receive re-training at regular intervals Regulatory watch: The regulations and laws governing transport in the country must be known and applied.

3. HSEQ MANAGEMENT The HSEQ manager (GM HSEQ) must ensure that the affiliate masters all transport activities (e.g loading/unloading operation) and are performed in absolute safety/security The HSEQ Manager (GM HSEQ) must verify that transport activities are well integrated in tools like risk identification and task analysis, accident investigations, security transport plan, crisis management cell emergency transport plan, management of change Risk identification and analysis of critical tasks The emergency transport plan The Crisis Management Cell The security transport plan Analysis of accidents and near-misses.

ACT

PLAN

DO

CHECK

TransportAction Plan

PATROM


15

4. Vehicle technical specifications: Vehicle under PATROM contract must meet the technical specifications of M & S (Marketing & Services) Acceptance procedure for a new or previously owned vehicle: This shall be carried out according to the technical specifications Vehicle inspection by affiliate: The following regular inspections must be put in place:

· Vehicle technical inspection (vetting)· “Safe to load” inspection· Random vehicle inspection.

5. DRIVER MANAGEMENT Driver initial and periodic training: All drivers must have followed an initial training defined by TOTAL M & S Driver manual: Affiliate must put in place a driver manual with reminders of the subsidiary's HSSE commitment and all rules and instructions to be followed by drivers Installation of monitors: Total Nigeria Plc opened its Drivers Training Facility in the year 2011 in Ibadan (Oyo State), where drivers are sent annually to be trained before they commence driving for Total Nigeria.

6. TRIPS MANAGEMENT Transport operation invariants: Compliance with speed limits and managing driver fatigue are prime factors for the

safety of transport operations Safe to Dispatch: this applies to both the vehicle and the driver Safe to Load.

7. CONTRACT MANAGEMENT

Contract Management: Management of relations with the transporters must be framed by a formal contract Contract contents: all relations with a contractor must imperatively be subject of a transport contract Contract review: this comes under the heading of supplier relations management and, must be organizes at least

once a year.

With all the highlights (1-7) above, it is clear that PATROM is set to regulate all transport related activity and ensure that our transport is carried out without posing any danger to our staff, our facilities, other road users as well as protection of the environment.

SAFETY FOR ME, FOR YOU & FOR ALL.

VEHICLE MANAGEMENT


16

STAKEHOLDER ENGAGEMENTAT TOTAL NIGERIA


17

Engaging Stakeholders

At Total Nigeria, we believe every bit of feedback is important to helping us serve better. We, therefore, frequently conduct extensive stakeholder engagement sessions to properly identify key issues, and to ensure that matters are properly prioritised. Over the years, we have found that this has helped us to improve our relationships with our stakeholders, and has guided our business strategy, challenging us to continue to do better. In 2015, we identified and engaged our stakeholders on a regular basis, deploying the appropriate tools for each stakeholder group across various platforms.


18

Identifying Our Stakeholders

ShareholdersEmployees

Communities

Government Agencies

Regulators

Civil Societies

Media

Suppliers Business Partners

Internal

External

Stakeholder Group

Communities

Suppliers

Meetings Questionnaires Forum On-site visits

Correspondence Dialogue Negotiations Press conference

Interviews Reviews

GovernmentAgencies

Regulators

Shareholders

Employees

Civil Society

Media

Business Partners

How We Engage Our Stakeholders


19

Based on these frequent engagements, we have identified the following issues as most material to our stakeholders, and this guided our Action Plan for 2016:

Assessing our stakeholders' issues: materiality map

Improved communications

Quality products and services

Reduction of truck accidents

Improved industrial relations

Improved procurement policies

Optimized opportunities for growth

Staff welfare schemes

Reviews feedback & follow up

Timely implementation of lease renewals

Support to local communities Access to energy

solutions

Skills development

IMPORTANCE TO TOTAL’S OPERATIONS

IMP

OR

TA

NC

E T

O S

TA

KE

HO

LD

ER

S

Materiality Map

LOW

LOW

HIG

H

HIGH

“Over the years, we have found that this has helped us to improve our relationships with our stakeholders...”


20

CUSTOMERSATISFACTION

PRIMARY FOCUS I:

Our customers are at the centre of our operations at Total Nigeria. All members of staff carry out their operations daily with the presence of mind that each activity impacts on our customers, and must be handled with the utmost professionalism and responsivity. It is, therefore, no surprise that our 2015 customer survey proved once again that Total Nigeria is indeed the leading downstream oil & gas company in Nigeria.

Capturing 600 respondents across our operations in Lagos. Abuja and Rivers, the survey was conducted by MK & I Limited through face-to-face interviews and intercepting customers at our service stations and those of our competitors.

In keeping with the brands' promise to be of exceptional quality, we recorded that Premium Motor Spirit (PMS) and Lubricants account for most of Total Nigeria's patronage. Also, Total Bonjour Shops across the study locations recorded high rates of patronage.

Majority of Total Product users are loyal to the Total brand with about 52% of our regular customers claiming to have been with Total for over 3 years.

52%Regular customers havehave been with Total for

over

3 years.

Lagos

Abuja

Port Harcourt

Customer Satisfaction Survey

Total User

Competition User

33% 45%

22%

27%

73%


22

8.6

8.58.48.38.2

8.18

7.9

7.87.7

7.67.5

Easy to dealwith

Being Knowled-geable about productand service

Staff commu-nication in a courteousmanner


Staff thatattend toyou are welltrained

Staff being well dressed/presentable

When our customers come in contact with us, we want them to leave with the feeling that they can associate with a brand that is focused solely on their needs. We, therefore, ensure that all representatives of Total Nigeria that deal with our customers are well trained, knowledgeable about our products and services, and accord our esteemed customers the deserved respect.

On a scale of 1 - 10, we scored well over 8 points in all categories that were measured and maintained our position above the competition.

Approach to Serving Customers

General Approach to Serving Customers - Brand Category

Total User Competition User

8.6

8.5

8.4

8.3

8.2

8.1

8

7.9

7.8

7.7

7.6

7.5

7.85

8.07

8.988.34

7.8

8.898.21

7.75

9.04

8.17

7.82

8.87

8.38

7.89

9.02

8.38

8.95 8.23

Easy to dealwith

Being Knowled-geable about productand service



Staff thatattend toyou are welltrained

Staff being well dressed/presentable

General Approach to Serving Customers - Location

Lagos Abuja Port Harcourt


23

8.19

7.75

8.26

7.83

8.06

8.98

8.22

7.81

8.14

8.92

8.27

7.88

8.03

8.95

8.38

7.92

8.06

8.83

8.32

7.79

7.84

8.92

8.02

8.86

Our customers' perception of our ability to deliver on products and services is of utmost importance to us. We are, therefore, dedicated to ensuring that we remain the market leader by constantly improving our value proposition and maintaining an established standard of excellence.

Reputation and Image

Reputation & Image - Brand Category

Reputation and Image - Location

Total User Competition User

Having a reputationas a leadingoil/petroleumservicecompany

Having a reputationas a leadingoil/petroleumservicecompany

Having a widerange ofproducts &services to suit your needs

Having a widerange ofproducts &services to suit your needs

Being trustworthy

Being trustworthy

Being innovative

Being innovative

Being theright partnerfor your oil/petroleum needs

Being theright partnerfor your oil/petroleum needs

Offering customerseasy accessthroughconveniently located servicesations

Offering customerseasy accessthroughconveniently located servicesations

Lagos Abuja Port Harcourt

8.22 8.19 8.24 8.168.47 8.25


24

At Total Nigeria, we are not only a responsible business, but a responsive one. Our customers know that they can come to us with their needs, and these will be resolved in the shortest amount of time possible.

Problems Resolved

36%

14%

Yes

A few minutes

No

About an hour

33%

100%

Problem Resolved

Time Spent on Problem Resolution

Total User

Total User

Competition User

Competition User

64%

86%

67%


25

Our customers in Abuja recorded the highest rate of satisfaction – and this result has been consistent with the customers' likelihood to retain Total Nigeria's services or recommend them to a friend – with our service and we have immediately begun to explore methods to heighten the experience for them. We have also taken steps to identify the issues our Lagos customers have, and make the necessary remediation.

Overall Satisfaction with Service Station

Lagos

Lagos

Overall Satisfaction with Service Station - Location

Likely to Continue Using Service Station - Brand Category

Likely to Continue Using Service Station - Location

Will Recommend Service to a Friend or Business Acquaintance – Brand Category

Overall Satisfaction with Service Station - Brand Category

Total Users

Total Users

Total Users

8.22

8.56

8.35

8.44

8.37

9.15

9.08

8.61

8.72

8.61

8.56

8.28

Abuja

Abuja

Port Harcourt

Port Harcourt

Competitive users

Competitive users

Competitive users


26

In terms of the quality of products and services rendered by Total Nigeria, our results were once again excellent, with our lowest scores hanging on the availability of the product and the value for money our customers receive.

Product rating

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Product Quality

Total Nigeria Product Rating

The companyprices are competitive

Price being regular/stable

Valuefor money

Product beingavailable whenrequired.

9.18.7 8.6

8.1 8.1

Will Recommend Service To a Friend or Business Acquaintance - Location

Lagos 8.29

9.29

8.7

Abuja

Port Harcourt


27

10.0

9.0

8.0

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Service culture

Corporate reputation& image

Problem resolution

Customer satisfaction

7.47.8

5.7

7.4

Overall Rating

In the course of engaging with our customers, value for money on our products and services was identified as a material issue. Our strategic response to satisfying the evolving needs of our customers was develop the 'one-stop centre' strategy whereby a variety of customers' needs are met in one place; Total Nigeria service stations. Now, in addition to receiving premium customer service from service attendants, customers can purchase petroleum products, gas, lubricants, car-car products, insecticides, conveniently shop at Café Bonjour shops, and receive premium car maintenanceand care services from Total Service and Total Wash. Corporate customers demand for bulk products are met through our Vendor Management Service and Equipment/Technical Assistance service.

This Vendor Management Systems Manager dispenses products to the customer through two possible channels: retail channel, where there is a dispensing pump at site used to service vehicles and trucks; and the direct consumption channel where the boilers and consumption generators are directly connected to the tanks using flow meter to measure consumption. This guarantees our customer adequate stock at all times, and relief from the burden of interference/encumbrances in the process of product reception.

Furthermore, in order to maintain and consolidate our unique position in the oil and gas industry, and in addition to our core products and services, Total Nigeria Plc with the support of Air Total International (incorporated in Switzerland), is well established as one of the major suppliers of aviation fuel to the aviation industry in Nigeria. Indeed, Total Nigeria is currently one of the two largest suppliers of JET A1 fuel in Nigeria today, offering excellent fuelling services at Lagos airports (domestic and international), and Kano, Abuja and Port Harcourt airports.

Value Added Services


28

HEALTH& SAFETY

PRIMARY FOCUS II:

EMPLOYEE

At Total Nigeria, we place a high premium on the welfare of our staff. Our number one objective is, therefore, 'zero fatality.' Through the application of the '12 Golden Rules', the use of a 'stop card' to avoid risky situations, and a standardised reporting mechanism for all anomalies, we are happy to report that we had zero fatalities in 2015 and a zero recordable injury rate. Consistent with the Company's safety ambition of sustainable development and commitment to better energy, safety is of utmost priority to us.

“Safety is a strongindicator of ourcommitment tobetter energy.”

More so, in keeping with the definition of true health as the physical, mental and emotional wellbeing of our staff, we protect our employees from incidents of discrimination through continuous dialogue and engagements including joint consultative committee meetings. We also encourage our staff to show the utmost respect for tenets in our Consolidated Basic Agreement which has been signed by the Union/ Association.

We have a total workforce of 477, majority of whom are covered by collective bargaining, and have undergone the requisite 40 hours of training.

Our staff are categorised as follows:

Working at Total Nigeria

By Employee Category

MaleMale

Less than 30FemaleFemale

30-50

more than 50

By Gender By Age

Employee with Disability

Male FemaleMale Female

Governance Bodies


30

MD's Football Cup

Based on our belief that a healthy workforce is a prerequisite for productivity and sustainable growth, we pay particular

attention to fostering good health practices among the staff, especially in continuing the tradition of The MD's Cup Football

Tournament; a biennial football competition amongst staff targeted at boosting employee fitness and promoting work-life

balance. Established in 2009, the fourth edition of this event held from May 12 to 16, 2015. There were four participating teams

representing the Head Office, Northern, Eastern, and Western territorial offices. Prior to the final match, using the league

format, these teams competed in preliminary matches with the Western Territory and Head Office emerging as finalists.

The Head Office team beat the Western territory during the final match of the tournament by three goals to one. The

preliminary matches were held at the Legacy stadium, Surulere on May 13 to 15 while the final match was held at Campos Mini

Stadium, Lagos on May 16; all in 2015.


31

Other activities that formed part of the event include:�� Healthy Living Walk by Management and Staff with our families and friends, from Total House in Victoria Island, to Campos Mini Stadium, Lagos Island

�� Novelty match between Management and Dealers, which drew one goal to one

�� Fastest Man and Woman in Total Nigeria Plc competitions, in which Mr. Albert Mabuyaku, Corporate Affairs st Manager and Mrs. Kate Ogu, Category Manager (Automobiles), retained their titles won in the 1 edition of

this contest.

Apart from being lots of fun and entertainment, the MD's Cup tournament offers several health benefits to the physical and mental well-being of participants.


32

Total Nigeria Plc boasts a culture of richly diverse people of different ages, national origins, political beliefs, race, gender, religious affiliations and spiritual affinities, of which we are very proud. We strongly believe that employees' differences generate richer ideas and solutions. In keeping with this, we celebrated the Global Diversity Day (GDD) in 2015, focusing on the themes, 'Diversity Drives Performance' and 'Diversity Makes Us Better', to help us eliminate stereotypes, prejudices and dominant misrepresentations in the company and to provide a platform for employees to discuss and share ideas on Total's values.

This auspicious event was celebrated nationwide at the Total Head Office, Eastern, Western, and Northern territories, and included the depots, plants, customer service centers, truck driving school, Joint Users Hydrant Installation (JUHI), and aviation units. It was indeed a “diversity-packed” event with equal parts fun and enlightenment.

Global Diversity Day 2015


33

We understand the difficulty many employees face as parents in not only procuring good health care for their wards, but in ensuring they are hands on in parenting these children. Consequently, we provide a child care facility aimed at alleviating the burden from our employees, especially the working mothers and of course, fathers.

The facility was established in 2010 and started with 4 babies. “By the end of 2010, the crèche had 10 babies”. In 2011 it had 7, in 2012 - 6, in 2013 – 15, in 2014 - 5 and 2015 - 10 babies. 32 babies have graduated from the crèche till date, with a total of 42 babies in all.

The Total Crèche Initiative


34

ECONOMICPERFORMANCE

PRIMARY FOCUS III:

STRONG

Transparency Is Key to Our Business Growth - Statement of Value Added

2014

Restated*

N'000

2015

N'000 % %

Revenue

2015

2014Restated

Other income

Finance income

Value added

Applied as follows

To pay government:

Income tax, education tax and capital gains tax

To pay employees:

Salaries, wages, pensions and social benefits

To pay providers of finance:

Finance costs

Interim dividend

Retained in the business

To maintain and replace:

- Property, plant and equipment

- Intangible assets

Final dividend

To augment retained earnings

Less- Bought in materials and services:

- Imported

- Local

Bought in material and services

208,027,688

(44,288,590)

(144,787,127)

18,951,971

1,204,459

2,030,983

22,187,413

2,448,339

7,102,282

1,790,600

679,044

2,997,670

66,731

3,055,696

4,047,051

22,187,413

240,618,693

(60,353,690)

(158,907,693)

21,357,310

1,171,824

342,919

22,872,053

1,542,464

6,777,106

2,621,211

679,044

2,854,662

51,412

3,055,696

5,290,458

22,872,053

100 100

11 8

32 30

8 11

3 3

14 12

0

13

23

100

-

14

18

100


36

N N

CITIZENSHIP

PRIMARY FOCUS IV:

CORPORATE

Total Nigeria’s Corporate Social Responsibility (CSR) strategy is based on the societal approach which focuses on actions relating to Citizenship, Human & Societal and Local Economic Development, access to Energy and the Environment.

The societal approach strategy include initiatives undertaken by Total in order to better integrate its activities into the societal context of its host communities notably by contributing to human, economic and social development. It helps to create measurable and lasting value for stakeholders. This presupposes our CSR initiatives must be implemented in a climate of respect, listening, continuous dialogue and transparency with our stakeholders.

We believe that the role of businesses in the sustenance of the society is very crucial; we, therefore, endeavour to carry our business sustainably in our communities with greater transparency and inclusiveness. Total Nigeria has facilities in 5 communities: Kaduna, Koko, Ibafon, Kirikiri, and Apapa. In each of these communities, we have maintained our commitment to our stakeholders to not only be responsible, but to also be responsive to their needs through the years.

To achieve this, we have structured our stakeholder engagement such that we are in partnership with our host communities through consultative committees comprising representative arms of the communities like the education committee, elders and youth council, women representatives and others.

In addition, feedback from these meetings are fed into the SRM+ framework received from the Total Group. This information is then analysed and aggregated to identify and prioritise the issues most critical to our communities. This technique has worked seamlessly over the years and has allowed us to enjoy a mutually beneficial relationship with our communities.

CORPORATE CITIZENSHIP


38

The Total Job Shadow program paired secondary students with select employees of Total Nigeria Plc to enable them

experience first-hand, the employee work environment, occupational skills in practice and potential career options. 30

students were given the opportunity to contest in an essay competition chronicling their activities during their time at Total

Nigeria.

Education

Overall, 5 winners from 3 schools emerged and the first and second place winners were presented with Tablets pre-loaded

with educational materials and 6 months internet subscription to bolster their efforts towards academic excellence. The third

place winners were presented with the Awango by Total solar lamps, bringing value not only to them, but to their family

members.

Job Shadow 2015


39

The highlight of the program was, however, the profound excitement and gratitude from the students and school authorities to

Total Management which served as an encouragement to do even more in future.

Name of Student (Mentee) School

Student's Specialty area Scores Position

2015 Total Job Shadow Essay Competition Winners

Sale NathanielGovernment Senior College V.I.

Kuramo Senior College, V.I.

Government Senior College V.I

Victoria Island Senior Sec. School

GovernmentSenior College V.I

Science

Science

Science

Commercial

Science

95%

90%

90%

85%

85%

1st

2nd

2nd

3rd

3rd

Uzoamaka Chinyere

Aondohemba Stephen

Paul Blessing

Jimoh Babatunde


40


41

In recognition of the relevance of vocational and technical training in today's advanced world, Total Nigeria embarked on a Skills Acquisition Program for the youth of its affiliate's host communities in Kaduna State and Delta State. While the program has recorded success over the years, 2015 saw 15 of the graduating youth presented with starter packs that would help them further careers in their chosen vocation including welding & fabrication, fish & crop farming, fashion designing, computer studies, furniture making and hair dressing.

In addition to the starter pack which usually contains work tools recommended by trainers required to set up small scale businesses for the beneficiaries, Total also prepaid two years of shop rent to further assist each beneficiaries.

This program has since its inception in 2006, graduated 60 youths in Kaduna state and 40 in Delta state. All of whom have been exposed to learning in certified training centres, and with training materials and allowances provided for the beneficiaries and their trainers to ensure they are well equipped with the necessary learning tools.

Furthermore, participants at the training are usually closely monitored by the Stakeholders Consultative Committee which comprises the community leaders/representatives and Total Nigeria Plc, to ensure they remain committed to successfully completing the training to their benefit and their communities at large.

Total Skills Acquisition Programme – Kaduna and Delta States


42


43

Total Group in Nigeria, in collaboration with the Nigerian Business Coalition Against AIDS (NIBUCAA), its technical partner on HIV/AIDS, launched the HIV/AIDS Tuberculosis and Malaria preventive education project in 2015. The 2015 campaign was launched at the Total Service Station at Bwari Local Council Development Area of the Federal Capital Territory (FCT), Abuja where preliminary surveys had identified the vulnerability of the community and necessitated immediate action.

Included in the activities for the launch was a 4-day peer educators training for 25 customer attendants and their station dealers. These trained peer educators were expected to in turn take the campaign to customers in their various service stations, during the course of their forecourt duties; as well as to their peers. Instructional and educational materials like posters, handbills and condoms were also given to the peer educators as tools to carry on the campaign.

HIV/AIDS, Tuberculosis and Malaria Preventive Education in Abuja

Health


44

More importantly, however, free HIV/AIDS counseling and testing was provided at the launch implemented simultaneously at various locations around Bwari and its environs for a period of two weeks. Overall, 1640 people were tested, out of which 1175 were male and 465 were female, and positive cases were immediately forwarded to identified support groups and primary health centers.

The highlight of the event was the presentation of hi-tech HIV/AIDS screening equipment and two-month re-agents supply to the Bwari General Hospital. This primary health care facility, following a survey, was identified as having the capacity to maintain and sustain the equipment, as well as serve as a reference point for advanced screening for HIV/AIDS cases in Bwari and its environs. Total Companies in Nigeria also ensured that the vendors of the equipment installed and provided basic training for handlers of the equipment, and agreed to sponsor one year of maintenance.


45

Studies in a number of countries in Africa have reported a 17% - 63% reduction in overall child mortality resulting from the use of the nets (WHO: 2012).

Based on the body of proof that Long Lasting Insecticide Nets (LLINs) are one of the most effective malaria vector control methods available to date, Total Group in Nigeria initiated the 'Net it Out' project to distribute and support in the hanging of LLINs in 500 households and to hand out Total insecticides to about 3,250 beneficiaries, many of whom were children under 5 and pregnant women in Ibafon community of Lagos state.

In addition, information, education and communication (IEC) materials were distributed within the community and across all Total Service stations nationwide to educate communities in our environs about malaria prevention and treatment.

The highlight of this program was the adulation from The Lagos State Ministry of Health through the State Malaria Elimination Program, praising our initiative as one that has made a significant dent on the malaria burden on Nigeria, and their provision of technical support for the project.

Net it Out Project in Ibafon Community


47

17%63%

from

to

3,250

Community Head, Ibafon, on Net it Out Initiative "It is very exciting to see that the Total Group is supporting our community in a significant way by helping a lot of poor families to prevent the spread of malaria in their homes. In addition to providing the nets at no cost, they have also provided labour to hang the nets so the families can start using it immediately. We will continue to pledge our support for the Company as they keep demonstrating their support for our people".

Reduction in overall child mortality resulting from the use of the nets

500 ‘Net it Out’

distributed nets to

beneficiaries, many of whom were children under 5 and pregnant women in Ibafon community of Lagos state.

households

Insecticide


48

Total Nigeria Plc is committed to creating better lives especially for those who are unable to do so for themselves. Through our corporate sponsorship programmes, we are able to make real impact in the lives of members of our local communities by identifying and catering to their precise needs. At the end of 2015, Total donated food items and provisions to 30 orphaned children in our SOS Children's Villages in Isolo, Lagos, Gwagwalada, Abuja, and Owo Ijebu, Ogun. We also sponsored a Christmas party in all three villages.

Our activities are, however, not limited to meeting these one-off needs. We have deployed a two-layered programme with the Complete Child Care Initiative and Mentor-a-Child Initiative, where we pay the school fees of these children, provide clothing for them, and develop close one-on-one relationships with them by assigning mentors; so much so that some of the mentors took their wards home for the Christmas holidays.

The highlight of the initiative was the renovation of the home in Owo Ijebu. The house which was previously sparsely furnished and in need of new and improved fixtures, fittings and amenities, was totally refurbished to the joy of the children and their caretakers alike.

Some of our other activities included: Secondary School Sponsorship Program for 22 students in Koko Ugomeje school furnishing project Fish farming project for one of the SAP beneficiaries.

SOS Children’s Villages Sponsorship Sponsorship and Donations


49

BEFORE AFTER


51

Donations and SponsorshipsMany organisations nationwide have benefitted from Total Nigeria's sponsorship activities. We are however selective of those who receive funding from us - individuals and organisations - to ensure that our commitment to real improvement is maintained along our value chain. Thus, we subject beneficiaries of our donations to thorough Due Diligence processes.

In 2015, we conducted a company-wide Total Survey, proceeds of which were split across three of our charity organisations, with each one receiving N130,333.33.

Looking ForwardHere at Total Nigeria, we are looking ahead with a view to increasing our reach in 2016. We cannot afford to rest on our oars and have, therefore, set targets for ourselves to enhance our relationship with our local communities.

We plan to: upgrade the Artillery School Complex in Kaduna increase the number of students who benefit from our scholarship from 21 to 26 implement 'Road Safety for Children' in 30 schools train 15 youth in a vocation of their choice and set them up train six female mechanics in Apapa, Ibafon and Kirikiri

upgrade our sponsored house at the SOS Children’s Village Gwagwalada, Abuja

Furnishing of Ugogomeje Nursery & Primary School, Koko Delta State. (Class room chairs, desks, teachers chairs desks, library shelves)

Various Sponsorships & Award Ceremonies (Nigerwives braille book, St. Theresa's interhouse sports, LBS CSRInitiative, Equiping kakuri Vocational Center, Society for Corporate Governanace, Int'l Womens Orgn (Small world), FNCCI Week, Nigerian Archeoigical Mission, Paralympic sponsorship etc

3,841,400

5,136,000

10,369,605

200,000

200,000

200,000

200,000

200,000

200,000

200,000

200,000

200,000

200,000

200,000

200,000

SOS Children’s Villages Sponsorship

Little Saints Orphanage

Christian Mission for the Deaf

Willy-Huts Humanitarian Development Foundation

Wesley School for the Hearing Impaired

International Women's Organisation for Charity

Lagos Chesire Home

Arrow of God Orphanage

Foundation for Hope in disability

Rosalie Home Rehabilitation Center

Good Shepherd Foundation for Destitute Children.

Heart of Dorcas Children's Center

Bethesda Child Support Agency

Orphanage of the Holy Spirit

Heart of Delta Childrens home/Heart of Warri Trust

Koko Primary Health Care Center

Nigerian Red Cross Society Motherless Babies home Enugu.

Grassroots Health Organisation of Nigeria

Fatherless & Motehrless Children's Aid Organisation

Joshua Generation Foundation and Youth Development

Ministry of Mercy Orphanages

200,000

200,000

200,000

200,000

200,000

200,000

200,000

200,000

Donation 2015


52

N

ENVIRONMENTAL PERFORMANCE

PRIMARY FOCUS V:

At Total Nigeria Plc, we are very conscious of the effect our activities have on the environment. It is especially important to us to forge thought leadership in our local clime.

This prompted us to launch the Awango by Total program in 2012 to market solar lamps, providing affordable access to energy for grassroots and communities in emerging markets. We had a target to sell five million lamps by selling one million by 2015, Total is happy to report that we met and exceeded that target in May 2015. We achieved this through partnerships with local enterprises in diverse communities; culminating in a win-win situation for all.

Total intends to provide clean, safe and affordable energy to as many people as possible. To do that, we strive to find innovative technological solutions, using a business model viable on a large scale.

Innovative and Affordable Access to Energy With Total's Awango

Nigeria's First Solar Powered Station

The initial goal of reaching 5 million people by selling

1 million lamps by 2015 was achieved and

exceeded!

In June 2014, Total Nigeria made history by building Nigeria's first solar-powered station at Onigbagbo, Lagos state. The station has contributed significantly to the reduction of our scope one carbon emission as well as electricity costs. Equipped with other facilities such as Oil separator pit for the forecourt, over-fill prevention devices for fuel tanks, and double wall tanks with leak detectors.

Also, energy saving solutions like the installation of low-energy consuming refrigerators is being used to limit the overall energy consumption in the stations; Total Nigeria Plc through these initiatives, reinforces itself as the brand of reference in sustainable development excellence.


54

Total Nigeria utilized the Harpe System to monitor its use of water across all its operations. While these have typically led to decreases in water consumption, we often have sudden increases as a result of one-time project run in certain communities, like the construction work at the Koko Plant in 2012.

In 2015 we recorded a slight increase in water consumption compared to 2014, specifically because of the site at Apapa (Lagos) which now supplies water to the Lagos South Office, the community mosque and the PTD Union building.

Nevertheless, our processes ensure that we efficiently utilize water resources, and as such, plans have been set in motion to run an awareness campaign on responsible consumption of water resources for the 2016 World Environment Day.

Efficient Water Consumption

Energy Consumption

30

Water Consumption (10³ m³)

Energy Purchases

25

2,000 2,000

20

1,500 1,500

15

1,000 1,000

5

500

Electricity (mwh) Other energies (toe)

LPG consumption (toe)Heavy fuel consumption (toe)Domestic oil and diesel consumption (toe)

500

0

0 0

2011

2011 2011

2012

2012 2012

2013

2013 2013

2014

2014 2014

2015

2015 2015

23.6

361

27.5

1001

20.8

852

13.5

1213 12041127

14741197

664

15.4

338

We recorded a slight decrease in energy consumption in 2015 compared to 2014 primarily to low throughput activity in our white product depots as well as the exclusion of Head office from the scope of reporting. Energy consumption in 2012 was higher than 2011 and 2013 due to high activity in the plants and depot.

We have set our sights to improve our performance next year through an energy efficiency project that will be launched in all our lubricant plants and depots to optimize and reduce energy consumption by at least 5% , using 2015 as a baseline figure.


55

Treated waste quantity (t)

Non-hazardous

waste (t)

Hazardous waste (t)

waste treatment cost (k€)

2,000

1,800

1,600

1,400

1,200

1,000

800

600

400

200

02011 2012 2013 2014 2015

409

1241

524

1188

20

1531

9

1267

52

The slight increase in hazardous waste quantity for 2015 compared to 2014 and 2013 was due to excavated hydrocarbon-tainted soil from Apapa depot during Tank 5 reconstruction project. Before that however, 2011 and 2012 experienced the Underground and Aboveground Storage Tank cleaning exercises that were carried out in 80 stations and 6 depots nationwide.

Waste treatment ways 2015

0.21%

Recycle/RecoveredWaste (t)

Other treatment

As a part of our efforts to reduce our waste creation, we launched the waste paper recycling initiative throughout the Total Group which accounted for the reduced quantity in 2014. However, we have excluded the Head Office from this report, and the records are solely for Total Nigeria Plc.

Our compliance to the controlled-incineration approach to non-hazardous waste management adopted by most regulators to reduce leachate and groundwater pollution issues accounted for the increase in number of waste treated by incineration. We however hope to improve the quantity of waste recycled across all our sites by providing waste disposal bins adapted for waste segregation to begin in Lagos.

99.79%

Waste Treatment & Management


56

Spills and Emissions

VOC emissions (t)

Spills numbers and volumes (m³)

1,600

400 20

18

16

14

12

10

8

6

4

2

0

1,400

350

1,200

300

1,000

250

800

200

600

150

400

100

200

50

0

0

2011

2011

2012

2012

2013

2013

2014

2014

2015

2015

1,474

351

1241

1241

841

136

1,190

235

1,060

81

912

148

The VOC emission for 2015 is lower compared to 2014, 2013 and 2012 due to low loading and throughput operations in the white product depots.The invariant project aimed to providing safety & environment-critical equipment in the depots for 2016 includes the maintenance of floating screens for PMS tanks to minimize emissions.

We recorded a higher number of spills in 2015 compared to 2014 mostly due to truck accidents. The volumes that reached the environment were however higher because two of the trucks were incinerated during these accidents. Remedial actions have been taken in this regard to combat future occurrences

Number of spills whichreached the neutralenvironment

Volume of spills whichreached the natural environment (m³)


57

Total Solar Solution to the rescue

Nigeria has a population of about 180 Million and currently generating between 4,000 to 4,500 MW of electricity. With a

projected demand of 20000MW there is an extreme electricity supply gap in the country. Statistics also show that only about

45% of the population has access to electricity.

It is no surprise then that the citizenry has resorted to the use of costly alternative sources of energy; generators, lamps,

candles, inverters etc. With their associated cost implications and underlying dire impact on the environment, these options are

neither efficient nor sustainable for the average Nigerian.

Study show that the average Nigerian spends about N12,000/month to generate an average of five hour power supply daily.

Most of these costs are on the conventional sources beyond solar, that is, when they are available for consumers to buy.

But Nigeria has abundant renewable energy potentials with an annual average daily solar radiation of about 3.5 KWm2/day in

the southern part and 7.0 KWm2/ day at the northern boundary….enough to give Nigerians, sustainable and realistic energy

option.

Total Solar Solution

With the global climate change and increasing carbon emissions becoming one of the most serious threats facing humanity

today, Total identifies the need for alternative energy technologies and solutions. In our effort to lead the campaign for a greener

tomorrow for generations to come, and in line with our sustainable development goals, we have taken bold steps to venture into

more environmentally friendly energy solutions.

Today, Total offers a bouquet of solar solutions, including: the hybrid energy solutions for industries, the Solar Home Solution for

families and homes; and our portable Awango by Total Solar Lamps.

Total Nigeria equally has the capacity to provide solar solution for telecom mast operators. This is an indication that the Total

solar technology has numerous benefits to every sector of the Nigerian economy. As a group , Total has deployed Solar

solutions to over 3,000 telecom sites.

Power Generation and Its Challenges

“...We have taken bold steps to venture into more environmentally friendly energy solutions.”


59

The benefits of these products not only include clean sustainable energy, but also huge cost savings on electricity bills and other

conventional energy sources beyond solar. The Solar Hybrid solution is ready to be offered to organisations who intend to use

clean energy and remarkably reduce their cost on fuel. We have successfully concluded pilot phases for the Solar Home

Solutions and ready to launch into the market.

All Total solar solutions will be delivered with SunPower Panels. Over the years, SunPower has been recognised as the industry

leader in offering the highest efficiency solar panels in the market. It absorbs more sunlight compared to other conventional

panels and remains intact even after years of exposure to extreme weather conditions. Hence, the reliability and efficiency of

Total solar panels confirm why they're backed by the best; 25-year combined Power and Product Warranty in the industry.

SunPower Corporation is a leading global Solar panel manufacturer in America and a subsidiary of Total. It designs and

manufactures high-efficiency crystalline silicon photovoltaic cells and solar panels. It holds the world-record of large silicon

panel efficiency (24.2%) a record confirmed also by the US department of Energy's National Renewable Energy Lab, thereby

empowering Total to offer the best Photovoltaic power solutions with highest level of efficiency and reliability.

Total panels offer the highest power-per-meter of any conventional panel available; typical modern designs are in the 250 to 270

W, while SunPower panels produces 345 W from the same sized panel. Hence, this enables it to produce 44% more energy than

the conventional panels of equal size.

Total Nigeria is set to play a major role in providing cleaner, sustainable and environmentally friendly energy in Nigeria.


60

PAGES

GRI CONTENT INDEX

GRI DISCLOSURES DISCLOSURES ITEM

GENERAL STANDARD DISCLOSURES

G4-1 Our Managing Director’s Statement

G4-3 Total Nigeria at a glance


G4-5 Our presence across Nigeria

G4-6 Scope & boundary


G4-8 Our presence across Nigeria

G4-9 Optimising opportunities for growth

G4-10 Working at Total Nigeria

G4-11 Working at Total Nigeria

G4-12 Value added services

G4-13 Optimising opportunities for growth

G4-14 Environmental performance

G4-15 Associations & memberships

G4-16 Associations & memberships

G4-17 Strong economic performance

G4-18 Our sustainability approach

G4-19 Assessing our stakeholders’ issues

Assessing our stakeholders’ issues

Assessing our stakeholders’ issues

G4-20

G4-21

G4-24 Identifying our stakeholders

G4-25 Corporate citizenship

G4-26 Engaging stakeholders

G4-27 Assessing our stakeholders’ issues

G4-28 Scope and boundary




Scope and boundary G4-32

G4-34 Committed to strong corporate governance

G4-56 Committed to sustainable development


61

4

28

9

36

6

9

55

38

9

20

6

9

9

19

9

13

6

9

14

18

30

20

6

11

6

14

20

30

20

6

10

CSR – Corporate Social Responsibility

HSEQ – Health, Safety, Environment Quality

ISO – International Organisation for Standardisation

ISOIPIECA – The global oil and gas industry association

for environmental and social issues

LPG – Liquefied Petroleum Gas

SEC – Securities and Exchange Commission

UNGC – United Nations Global Compact

ABBREVIATIONS

EC SE13 Strong economic performance

LA-6 HS-3 Employee health & safety

Employee health & safety LA-9 SE-17

LA-12 SE-15 &16 Working at total nigeria

HR-3 SE-18 Employee health & safety

SO-1 SE-1 Corporate citizenship

EN-3 E-2 Energy consumption

EN-6 E-2 Energy consumption

EN-8 E-6 Efficient water consumption

EN-9 E-6 Efficient water consumption

EN-21 E-9 Spills & emissions

EN-22 E-10 Waste treatment & management

EN-23 E-10 Waste treatment & management

EN-33 E-9 Spills & emissions

SOCIAL PERFORMANCE: UNGC PRINCIPLE 3 & 6

GRI

DISCLOSURES IPIECA PRINCIPLES DISCLOSURE ITEMS PAGES

36

55

30

55

30

57

30

55

30

56

38

56

57

55

SPECIFIC STANDARD DISCLOSURES

ECONOMIC PERFORMANCE


62

ENVIRONMENTAL PERFORMANCE: UNGC PRINCIPLES 7 - 9

www.total.com.ng

Energy drives progress where it is readily available. Two of the biggest challenges in building a responsible energy future are ensuring access for all and using energy wisely.

This is the environment in which we conduct our business. With operations in more than 130 countries, we are a leading international oil and gas company. We produce, refine and market oil and manufacture petrochemicals. We are also a world-class natural gas operator and rank second in solar energy with SunPower. Demonstrating their commitment to better energy, our 100,000 employees help supply our customers worldwide with safe, cleaner, more efficient and more innovative products that are accessible to as many people as possible. We work alongside our stakeholders to ensure that our operations consistently deliver economic, social and environmental benefits.

Total Nigeria Plc.Total House, 4 Churchgate Street, Victoria IslandP. O. Box 2143, MarinaLagos, NigeriaTel: +234 (01) 4619182-9Fax: +234 (01) 4610544 Website: www.total.com.ngEmail: [email protected]

www.facebook.com/totalnigeria

www.twitter.com/totalnigeria

http://[email protected]

total nigeria plc sustainability report 2015

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