The Group recognises the importance and urgency of the fight against climate change and is well aware of the challenges facing its sector in terms of energy transition. The oil and gas sector plays a key role in energy access, and energy is essential to meeting people’s basic needs (transportation, heating, keeping cool, lighting, cooking) and supporting their development. Nevertheless, even today, a large proportion of the population in many of the regions in which Rubis operates (Africa in particular) is deprived of access to energy.

The changing expectations of society and the need to reduce greenhouse gas emissions worldwide are thus leading the Group to strike the right balance by taking into account:

• •on the one hand, the need to contribute to the fight against climate change by reducing the CO2 emissions tied to its activities; and
• •on the other hand, the expectations of those who want access to affordable and reliable energy so they can meet their essential needs and the social-economic impacts of energy transition. Rubis therefore has a role to play in ensuring that this transition is as just as possible.

The CSR Roadmap, Think Tomorrow 2022-2025, published by the Group in September 2021 includes the Group’s climate objectives (see section 4.3.4).

This section is structured in accordance with the recommendations of the Task Force on Climate-Related Finance Disclosures (TCFD) (see correspondence table at the end of this section, 4.3.5).

Rubis has set up a structured governance system involving all levels of management to ensure that these climate challenges are fully incorporated into the Group’s strategy.

The position of Managing Director in charge of New Energies, CSR and Communication was created at Rubis SCA. The Managing Director is a member of the Group’s Management Committee and is responsible for these issues.

The Managing Director also chairs the Climate Committee, which met four times in 2021. This Committee is made up of Rubis’ CSR Director & Chief Compliance Officer, Rubis Énergie’s General Management and its Finance, CSR, HSE and Risk-Resources Directors (Rubis Énergie is the main contributor to the Group’s carbon emissions), and a representative of the Rubis Terminal JV. Rubis Énergie’s Climate & New Energy team, which was created in 2020, provides input to the Climate Committee and coordinates the operational efforts made by all the Group’s subsidiaries. The Committee’s key role is to:

• •monitor the Climate action plan, which is based around the three pillars, “measure, reduce, contribute to carbon neutrality”;
• •monitor changes in the carbon footprint and the avenues to reduce it; and
• •propose solutions for the transition to low-carbon growth in the distribution of energy products.

The principal players in this transition are trained in carbon accounting techniques and climate challenges. For example, in October 2021, Managers and certain key functions at Rubis Énergie participated in climate training organised by IFP Énergies Nouvelles.

Rubis SCA’s Supervisory Board is responsible for monitoring of the Group’s climate strategy and performance. In the framework of its work on this subject, the Supervisory Board relies on its specialised Committee, the Accounts and Risk Monitoring Committee. At meetings held in March and September 2021, the Committee examined the Group’s current climate challenges, including a review of the presentation of the climate risk factor included in the risk factors published by the Group, the presentation of CO2 emission reduction targets, and a progress report on the work carried out in respect of the European taxonomy on “adaptation to climate change” and “mitigating climate change” objectives. The Supervisory Board was also informed about Rubis’ strategy for developing in the area of renewable energies (acquisition of a stake in HDF Energy, acquisition of Photosol) and about the launch of an assessment of measures for decarbonising Rubis’ activities that was commenced in 2021.

The importance the Group attaches to climate issues is reflected in, among other things, the inclusion since financial year 2019 of an energy efficiency performance criterion that is considered when allocating annual variable compensation to the Managing Partners. This criterion is based on meeting targets that aim to improve the carbon intensity (operational efficiency) of the Retail & Marketing and Support & Services activities (Rubis Énergie). The satisfaction of this criterion is verified by the Group’s Compensation and Appointments Committee each year and is submitted to Annual Shareholders’ Meetings for approval.

Today, Rubis has undertaken to further incorporate energy transition challenges into its strategy. Although there are many avenues to be explored, significant technological, societal and economic challenges remain to be met in relation to reducing the proportion of fossil fuels in the energy mix and making less carbon-intense energies available to all. In order for these solutions to be successful and drive progress, they must be adapted to the specific characteristics of each of our regions. Lastly, to be sustainable, growth must also be inclusive. It is therefore essential that the policies implemented to promote the transition to a low- emission economy that is resilient to climate change have a positive social impact.

In this context, in order to move concretely towards growth that is less dependent on fossil fuels, Rubis has identified as the main pillars of its climate strategy:

• •decarbonising its historical activities (emissions tied to operations): objective of reducing carbon emissions from operations by 20% by 2030 (2019 baseline, scopes 1 & 2, Rubis Énergie scope representing 100% of the Group’s consolidated revenues as of 31 December 2021) was increased to -30% based on an in-depth study of decarbonation levers;
• •diversification of its Retail & Marketing activities (carbon intensity of products sold) around three focus areas: mobility, biofuel offering and hybrid solutions offering;
• •development of new activities in renewables: in 2021, the Group acquired an 18.5% stake holding in HDF Energy (hydrogen-electricity) and announced the acquisition of Photosol (producer of solar energy). Rubis plans to continue these developments and announced the creation of a new branch of activities dedicated to renewable or low-carbon energies.

These strategic pillars are discussed in section 4.3.3.2.

Adapting the Group by reducing the carbon footprint of its activities and diversifying its offering is a key factor in continuing sustainable growth and responding to climate risks (regulatory developments, such as the implementation of carbon taxes, physical risks tied to the effects of climate change).

Climate challenges present opportunities for Rubis Énergie and the Rubis Terminal JV to develop new offerings and products to aid in energy transition by adapting to the needs and on-the-ground realities of each region in which he Group operates. Indeed, in line with international climate agreements, including the 2015 Paris Agreement, although the fight against climate change is a global challenge and a shared responsibility, transition issues differ depending on geographic area.

Rubis is already directly involved in innovating and rolling out low-carbon solutions (synthetic diesel, green hydrogen, CO2 capture by algae, biological carbon sinks), all while developing training and employment and improving the local and global environmental footprint.

Rubis is currently designing a methodology for defining an internal carbon price (with an objective for implementation in all subsidiaries falling within Rubis Énergie’s scope by 2023) to assist with making investment decisions.

The Group’s CSR Roadmap, Think Tomorrow 2022-2025, published in September 2021 includes the Group’s climate objectives (see section 4.3.4).

At this stage, Rubis has not committed to achieving carbon neutrality. Indeed, achieving this objective would require Rubis to have massive recourse to measures contributing to global carbon neutrality (offsetting). While Rubis does not rule out the measured use of such ad hoc actions in well-defined contexts to contribute to global carbon neutrality, it does not wish to base its climate strategy on this mechanism. The Group’s seeks above all to implement measures to reduce its emissions and diversify its activities. The few projects implemented that contribute to global carbon neutrality (offsetting) are selected with the greatest care, notably by taking their co-benefits into account, so that those projects fit with the Group’s overall CSR approach.

Climate challenges are included in the Group’s risk analysis processes, and its risk mapping work in particular, which contains a dedicated section on the issue. Therefore, each year, every business unit assesses its exposure to climate risks.

The climate risks to which Rubis, and more specifically Rubis Énergie, are exposed are described in greater detail in a dedicated risk factor in chapter 3, section 3.1.2.2. These risks are grouped into two main categories: physical risks (vulnerability of facilities to natural hazards, impact of temperature variations on product sales in the most exposed areas, Europe in particular) and transition risk (changes in the regulatory environment, particularly in Europe with the European Union’s Fit for 55 programme; stakeholder expectations). It should be noted that 25% of emissions are tied to business units within EU countries (30% of scopes 1 and 2 and 24% of emissions tied to volumes of products sold), where regulations pertaining to energy transition are the most advanced.

These risks are also described in the Group's response to the CDP Climate Change 2021 questionnaire accessible on the CDP's website.

Climate risk does not have the same degree of materiality for Rubis Énergie and for the Rubis Terminal JV due to the different nature of their activities. Although it is only present in Europe, the Rubis Terminal JV’s main activity is to provide storage capacity for bulk liquid products for third parties (fuels and heating fuels as well as biofuels, chemical products and agri-food products) and, more marginally, it distributes small volumes of fuels.

In order to enhance the consideration of climate risks in its decision-making process, Rubis is currently working to develop a methodology for defining an internal carbon price (with an objective for use in all subsidiaries falling within Rubis Énergie’s scope by 2023). This tool will help management to better incorporate climate risks and challenges in investment projects (external or organic growth) presented to it.

The operational measures taken by the Group to control and reduce the carbon footprint related to its activities, and thereby strengthen its climate resilience seek to:

• •improve the energy efficiency of its operations;
• •diversify Retail & Marketing activities;
• •develop new activities in renewable energies.

These measures would not be complete without acting on demand, by implementing support and awareness-raising measures aimed at getting customers to reduce their emissions by consuming better and less.

The Group makes significant efforts daily to reduce energy consumption in its industrial activities, optimise operating expenses and reduce the impact of its activities on climate change. Particular attention is paid to the most energy-intense industrial sites. As energy consumption also results in air emissions other than greenhouse gases, some of the measures described below are also aimed at reducing the polluting emissions discussed in section 4.2.2.2.

In 2021, with the help of a specialised consulting firm Rubis Énergie carried out a comprehensive study aimed at clarifying the CO2 decarbonation trajectories for scopes 1, 2 and 3A (excluding products sold). The full results of this study will be known in the first half of 2022. The Group has already confirmed a more ambitious objective of reducing emissions from operations (scopes 1 and 2): -30% by 2030 (2019 baseline, Rubis Énergie scope, constant scope) vs. the -20% objective that had been announced initially. A second objective covering scope 3A (excluding products sold) will be defined in 2022. Rubis’ decarbonation trajectory therefor falls within a well-below 2°C scenario.

As part of modernisation programmes, the boilers at Rubis Terminal sites are being replaced by heat pumps or mixed systems (heat pumps and boiler) or, local conditions permitting, by greener heating systems (geothermal for instance).

In line with its DNA, the Group favours a decentralised approach to identifying solutions adapted to the specific characteristics of each local environment (climatology, vehicle fleet, etc.). These projects are being developed around the three following themes:

• •offering hybrid solutions: solarisation of facilities (with or without storage), in addition to the use of other energy sources;
• •offering biofuels; and
• •mobility (electric vehicle charging stations, for instance).

Some subsidiaries have already launched projects to diversify their activities and market fuels with a less carbon-intense life cycle.

The Rubis Énergie Retail & Marketing subsidiary operating in the Channel Islands (FSCI) launched a marketing campaign in 2019 for biofuel used in land vehicles. HVO (Hydrotreated Vegetable Oil) is a synthetic diesel fuel that complies with the European renewable energy directive. This biofuel is made from vegetal or residual raw materials and waste. It has the same chemical structure as a standard fuel but is non-fossil and reduces carbon emissions by at least 50%. It can be used in most diesel engines without any prior modification, which taps into the full potential of its environmental qualities.

The aim is to extend this practice to other Group subsidiaries when access to this product is possible.

SARA has chosen to capitalise on the strengths of its geographical footprint and industrial process to diversify its activities in the area of renewable energy.

A true laboratory in the field of energy transition, SARA has for several years been developing projects to convert the hydrogen produced by its activities into green electricity (ClearGen) and to build a photovoltaic power plant to supply green electricity to around 3,000 residents in Martinique. SARA is actively playing its role in the fight against climate change through new projects, Hydrane de Guyane in particular. This concerns a project for the methanisation of local aquatic biomass cultivated for this purpose. The biogas produced will be used for space fuel (future Ariane launcher) and/or electricity production. The goal is to make this project an energy positive biological carbon sink. SARA has also launched a project to produce green hydrogen for mobility in Guadeloupe (Hydrogen Green Island). This project consists of producing renewable hydrogen by water electrolysis powered by photovoltaic electricity. The project has been designed for Guadeloupe, with the aim of producing mobility hydrogen for a fleet of buses.

The Rubis Terminal JV is gradually diversifying its activities by developing the mix of products stored in its terminals.

In 2021, fossil fuels represented 48% of revenue from stored products (compared to 60% in 2020). Other liquid products, such as biofuels, chemical products, fertilisers, edible oils and molasses, are also stored and represent 52% of the joint venture’s revenue (compared to 40% in 2020).

Elengy and the Rubis Terminal JV have signed a cooperation agreement to launch studies on the installation of an LNG storage facility at the Reichstett terminal (Bas-Rhin). The objective is to meet the retail LNG needs of central-western Europe for road and river transport, and for industry.

In June 2021, Rubis began to diversify towards less carbon intensive energies through the acquisition of a stake holding in and an industrial collaboration with HDF Energy, a global pioneer in hydrogen power that produces continual or on-demand electricity from renewable energy sources (wind or solar), combined with high power fuel cells. Since 2017, Rubis has collaborated with HDF Energy on the West Guyana Power Plant (CEOG), of which SARA holds 30%. CEOG is an innovative plant comprising solar panels, batteries and storage of hydrogen produced with the assistance of electrolysers. The plant will make it possible to supply the equivalent of 10,000 households with stable, guaranteed and non-polluting electricity once commissioned, which is scheduled to take place in mid-2024. A similar project was launched in Barbados.

In December 2021, Rubis announced the acquisition of Photosol France, which will allow Rubis to accelerate its transition to renewable energies and decarbonation. Photosol France is one of the main independent developers of renewable electricity in France, with operational capacity of 313 MW and 101 MW under construction. Photosol France’s objective is to reach over 1 GW in installed capacity by 2025 and to own and operate at least 2.5 GW in installed capacity by 2030. The acquisition was completed on April, 14 2022

These activities will be grouped together within a new division, in the process of being created. The division will focus on developing renewable energies, alongside Rubis Énergie’s historical business of Support & Services and Retail & Marketing, and the storage activity carried out by the Rubis Terminal JV. The division is expected to represent 25% of the Group’s EBITDA in the medium term.

Aware that customer use of the fuels it distributes generates CO2 emissions, Rubis Énergie implements initiatives aimed at encouraging consumers to make better use of these products in their day-to-day lives.

For several years now, initiatives aimed at customers, professional and individuals have been carried out:

• •supporting consumers in energy saving programmes, in particular through consumption habit information and awareness-raising initiatives aimed at consumers;
• •promoting the use of liquefied gas as a transitional energy: liquefied gas is an integral part of the energy transition, particularly in emerging countries where a significant portion of the population is energy insecure. The characteristics of LNG make it possible to respond to concerns about energy access while preserving against massive deforestation by replacing wood charcoal. Some 20 Rubis Énergie subsidiaries are positioned on the liquefied gas distribution market (bottled and bulk) and encourage its use as a substitute for the most CO2-emitting energies, such as fuel oil for heating and wood or charcoal for cooking. In 2021, liquefied gas accounted for nearly 23% of the volumes of products sold by Rubis Énergie.

In Madagascar, more than 97% of households still rely on firewood and charcoal for cooking energy. To stop the massive deforestation this entails, the Malagasy government has identified various measures, including the use of alternative energies.

Vitogaz Madagascar takes part in this energy policy by promoting the use of bottled liquefied gas and by facilitating household access to this product. The extension of retail gas outlets in Madagascar has removed one of the barriers to the purchase of liquefied gas cylinders. Carrying on from prior initiatives, Vitogaz Madagascar distributed over 10,500 Fatapera kits (a portable stove for cooking that attaches to the gas cylinder).

In addition, Vitogaz France, Vitogas España and Vitogaz Switzerland continue to promote the use of liquefied gas as fuel. A vehicle running on LPG emits up to 20% less CO2 than a petrol vehicle and practically no pollutants (particles, sulfur dioxide SO2 or nitrogen oxides NOx) (see boxed text on pollutant emissions in section 4.2.2.2).

In the Channel Islands, Rubis Énergie’s subsidiary promotes the environmental performance of HVO among both professional and individual retail customers.

An objective aimed at continuing and strengthening these initiatives was added to the CSR Roadmap, Think Tomorrow 2022-2025: starting in 2022, each subsidiary will be required to organise at least one consumer awareness-raising initiative per year.

Quantitative data on CO2 emissions tied to customers’ use of products sold by the Group are included in the “Greenhouse gas emissions” table set out in section 4.3.4.

To address these risks and define its transition trajectory, Rubis follows the “measure, reduce, contribute to planetary neutrality” approach. To better assess its carbon footprint, since 2019, the Group has commissioned a comprehensive greenhouse gas emissions assessment of its activities. The scope covered included the activities of the Rubis Terminal JV, as well as products sold, so as to identify the most effective means of reducing its footprint. Initially, the assessment was carried out in accordance with the methodology designed by Ademe (Agence de l’Environnement et de la Maîtrise de l’Énergie), based on the recommendations of ISO 14064-1 (see the methodology note contained in section 4.5.1.1 for more details on the reporting scope), and was carried out in the first year with the support of an Ademe-certified firm that trained Rubis’ teams in carbon accounting. In 2021, the Group reassessed its greenhouse gas emissions in strict compliance with the GHG Protocol. The refinement of this methodology led the Group to revise the results for 2019, which are used as the baseline for setting the Group’s CO2 emission reduction targets. The changes made are described in the notes to the emissions table.

Greenhouse gas emissions are accounted for across three scopes:

• •scope 1: direct emissions from fixed or mobile facilities located within the undertaking’s organisational scope;
• •scope 2: indirect emissions related to the production of electricity and heat and cold used;
• •scope 3: other indirect emissions generated by third-party activities upstream or downstream of the undertaking’s activities.

It should be noted that the impact of the Group on greenhouse gases is limited to carbon impact, given the fact that greenhouse gas emissions other than CO2 are insignificant, non-existent. Indeed, contrary to other players in the oil and gas sector, Rubis does not have any extraction activities, which is a source of methane emissions.

The Group gradually and methodically defines its CO2 emission reduction goals. Ultimately, the objective is to reduce the carbon footprint of all scopes.

Rubis Énergie has developed an action plan to reduce its CO2 emissions. The plan was designed after extensive consultation with subsidiaries and functional departments, with the support of consultants specialised in each of the Company’s key business lines (land transportation, shipping, refining, storage site management). Emission reduction objectives have been progressively and methodically defined on the basis of this consolidated action plan, which is defined for the 2019-2030 period. These objectives were communicated in the CSR Roadmap, Think Tomorrow 2022-2025, published in September 2021:

30% reduction of scope 1 and 2 emissions by 2030 (scope Rubis Énergie, 2019 baseline, constant scope)

The levers identified to achieve this target are based on initiatives by Rubis Énergie and its subsidiaries, but also on technological and regulatory advances.

In 2022, this objective will be supplemented by an objective covering scope 3A (i.e., excluding products sold).

The levers identified to meet this objective notably relate to fleets of vehicles and vessels used to transport imported and/or sold products and, to a lesser extent, best practices in environmentally friendly driving.

In 2022, an objective aimed at reducing the carbon intensity of our products will be defined (scope to be determined).

Starting in 2022, each business unit will be required to organise at least one consumer awareness-raising initiative per year.

The Rubis Terminal JV is finalising the definition of the targets to be met by 2025 and 2030, which will be expressed in carbon intensity (kilos of CO2 over throughput out (i.e., per ton of product that has entered into the JV’s terminals)), according to type of depot (for the figures reported in respect of 2021, see section 4.3.4.2).

In an effort to share its work and for the sake of transparency, the Group responded to the CDP’s 2021 Climate Change questionnaire on the 2020 financial year and obtained a score of B. By obtaining this score, Rubis is among the 25% of companies in the oil & gas sector with a score of B or above. Improvements can be made, including with respect to the analysis of risk scenarios and the definition of a trajectory within a well below 2°C scenario, which will be finalised in financial year 2022.

Generally speaking, the energy consumed by the Group’s industrial facilities (electricity, steam, fuels) contributes to the proper day to day functioning of the industrial facilities, including safety equipment (fire motor pumps, emergency generators, etc.).

As regards emissions tied to the use of products sold, Rubis Énergie (and the Rubis Terminal JV to a very marginal extent) distributes petroleum products that emit CO2 when used by customers. This item therefore constitutes the principal source of the Group’s CO2 emissions and almost all scope 3 emissions, although in 2021, 52% of gross margins resulted from sales of liquified gas and bitumen, which are products that emit little to no CO2 when used. These emissions correspond to 14% of the Group’s total emissions.

In 2021, a decrease (-5%) in scope 1 and 2 emissions was observed. This decrease can be explained in particular by the delayed re-start of a diesel turbine at SARA (-10 kt), which was partly offset by electricity consumption from the grid (+4 kt) and by changes in maritime logistics operations in the Caribbean (-11 kt). Improved energy efficiency at facilities also made it possible to limit the increase in operating emissions despite the growth in bitumen sales (+3 kt). In addition, in scope 3 (excluding products sold), the increase in the distribution of liquefied gases and fuels in 2021 (after financial year 2020, which had been more marked by a drop in volumes due to the pandemic) led to an increase in emissions resulting from their being transported by truck. The increase in Rubis Terminal’s emissions can be explained by, in particular, the integration of Tepsa, which represents a quarter of the JV’s storage capacity.

As announced in the 2020 Universal Registration Document, in 2021 Rubis defined a more relevant indicator than the one previously used to assess the carbon intensity of its operations. As previously calculated, the indicator compared scope 1 and 2 CO2 emissions to volumes of products sold in megawatt hours (MWh). However, for certain activities, no emissions are linked to the use of products sold. In particular, bitumen sales cannot be converted into MWh because bitumen is not used by our customers for energy (used for road infrastructure projects in particular). Therefore, the indicator did not correctly reflect the variety of Rubis Énergie’s activities and the result of the actions it has taken to reduce the carbon emissions of its operations.

Between 2020 and 2021, the operations carbon intensity indicator (Rubis Énergie’s scope 1 and 2 CO2 emissions in relation to EBITDA) fell by almost 13%. This drop is linked (in respect of about 50% of the decrease) to, on the one hand, a specific, one-off reduction in SARA’s emissions (major shutdown) which, proportionally, had little impact on EBITDA, and, on the other hand, to an improvement in shipping emissions in view of the increased volumes processed, which improvement was partly structural and partly cyclical.

A change in method was introduced between 2019 and 2020. The Rubis Terminal JV now considers outgoing product volumes (“throughput out”) as a reference instead of incoming and outgoing product volumes (throughput in + out) in order to align itself with other financial indicators that also use “throughput out” as a reference.

The Rubis Terminal JV also distinguishes depots according to three categories of activities: fuel distribution depots (36% of the Rubis Terminal JV’s storage capacity); mixed depots (46%) and chemical product depots (18%).

The decrease in this indicator principally corresponds to Tepsa entering the Rubis Terminal JV’s scope, which performs better than the existing mixed depots within the Rubis Terminal JV. At constant scope, all sites improved, thanks to changes in facilities for new fuels and heating activities that were ceased.

The refinery is equipped with a cogeneration combustion turbine for producing electricity (3.5 MW) and superheated steam (9 t/h); two boilers also produce superheated steam, a main boiler (22 t/h) and a secondary boiler (15 t/h). In 2021, the aggregate volume of energy produced (electricity and steam) represented 32% of the energy consumed over the period, which was stable compared to 2020.

The Retail & Marketing activity does not produce energy, or only very marginally at this stage. A solarisation programme applicable to our sites and service stations is in progress (total installed power of 137 kWp as of 31 December 2021).

In 2021, the net energy consumption of the Rubis Terminal JV’s sites increased compared with 2020. This increase is the result of two outstanding phenomena:

• •the general increase in throughput in 2021, which led to a return to 2019 traffic levels in fuel distribution and a significant increase in chemicals; and
• •the integration of Tepsa (Spanish subsidiary) within the scope. While better performing in terms of energy consumption, particularly as regards heating fuels, a more significant increase in electricity consumption was observed.

In addition, this relative increase was also tied to the diversification of stored products and the increase in the storage of heated products requiring energy to keep them at the correct temperature (carbon black at 50°C and bitumen at 170°C), to treat toxic vapors and to ensure inerting (a process aimed at eliminating/reducing the risk of accidents resulting from the handling of explosive or flammable products).

In 2017, the Task Force on Climate-Related Financial Disclosures (TCFD) of the G20’s Financial Stability Board published its recommendations on climate related information to be published by companies.