A shared endeavor: TOTAL and DHL foster collaboration with new agreement
DHL and Total aim to unlock innovative approaches to the challenge of delivering cleaner, safer energy to the world.
With a long history of shared company relationships in over 100 countries worldwide, Total and DHL know each other well. Total provides DHL with a variety of energy solutions and services for its fleet and operations, while DHL provides a wide range of logistics and supply chain solutions to Total businesses. The new strategic cooperation agreement between Total and DHL is intended to do much more than cement an existing worldwide relationship.
Total is a major energy operator, producing and marketing fuels, natural gas and low-carbon electricity. Its 100,000 employees are committed to better energy that is safer, more affordable, cleaner and accessible to as many people as possible. Active in 130 countries worldwide, Total’s ambition is to become the responsible energy major, putting climate challenges at the heart of its strategy and integrating the IEA’s 2°C Sustainable Development Scenario.
Becoming the responsible energy major means meeting the growing demand for energy and fulfilling the expectations of its customers. To do this, Total operates throughout the energy chain, from production to distribution and processing. Its oil and gas production was up 8% in 2018, a record that helps meet the world’s growing demand for energy. Yet Total is committed to reducing the carbon intensity of the energy it produces by increasing the share of natural gas in its production. With more than 40 years of experience in the production and marketing of natural gas, Total is now the second-largest private global LNG player with the ambition of representing 10% of the world market by 2020.
The changing energy landscape
Becoming the responsible energy major also means taking climate challenges into account and committing to cleaner energy. One example of this initiative is through a reduction in the carbon intensity of the Group’s products. Thanks to its integrated model, Total operates throughout the energy chain to offer its customers an energy mix that is increasingly less carbon-intensive, such as electricity produced from natural gas or renewable energies (solar, wind, hydropower) through the Quadran Group and Total Solar Group affiliates. The development of new storage solutions, in particular through Saft, the world leader in high-tech batteries, also helps Total to reduce its carbon offset. In addition to this, Total aims to improve energy efficiency to CO2 dioxide emissions at the Group’s industrial, commercial (gas stations) and tertiary sites, as well as among its customers, who are offered a range of services and solutions to reduce their overall energy consumption.
Another instance of Total committing to cleaner energy is through the development of solutions for supporting more sustainable mobility. Examples include offering natural gas for vehicles through a partnership with Clean Energy in North America, LNG bunkers for maritime shipping, and electromobility through G2mobility, now Total EV Charge, a French leading provider of electric vehicle charging solutions and market leader in B2G and B2B. Total’s acquisition of G2mobility is accelerating its growth in EV charging by offering charging stations at Total retail outlets, at businesses and in municipalities. Currently, 100 Total service stations in Europe have EV charging facilities. Lastly, Total has been a producer of sustainable biofuels for the last 20 years, and helps to promote these through starting up the La Mède biorefinery, one of the biggest in Europe.
Safety is a core value
Total is a major energy player that places safety at the heart of its priorities, particularly in regard to the road transport of its products. Hans-Christian Guetzkow is Senior Vice President of Health, Safety, Security and Environment (HSSE) in Total’s Marketing and Services branch. “In our part of the business, it’s fair to say that road transport presents one of the biggest safety risks,” he says. “Every day we have more than 10,000 trucks delivering our products to customers and partners in 130 countries around the world. Many of those products are dangerous goods: LPG, gasoline, and other petroleum products.”
“Reducing road accidents is particularly challenging,” says Guetzkow, because responsibility for safety ultimately comes down to the actions of a single individual: the truck driver. “Driver behavior is one of the root causes in more than 70% of accidents,” he notes. “It’s vital that we have proper training, and that drivers follow proper standards.”
Total is continually working on a range of fronts to improve the safety of road transport operations. The company tracks the safety records of its transport partners and conducts regular audits to check compliance with agreed operating procedures, which cover everything from driver hours and speed limits to the choice of routes and delivery timings during periods of bad weather or public holidays. Vehicles dedicated to Total operations are often equipped with onboard computers (in accordance with national rules and laws) to track routes and driver behavior, which significantly has reduced accidents.
Working with partners such as DHL, actions are needed to enhance safety standards on both sides. “Logistics and supply-chain activities are very important to Total – from an operational perspective, as part of our efficiency improvement efforts, and from the point of view of health and safety,” states Guetzkow.
Beyond principle safety measures, the strategic cooperation agreement in particular brings together concrete projects centered around the low-carbon ambitions expressed by each group, preparing the future through innovation under consideration of the transformational technical and environmental challenges involved. DPDHL’s climate protection target through the GoGreen program is to reduce all logistics-related emissions to zero by the year 2050, with a number of interim goals to be achieved by the year 2025. This is entirely coherent with Total’s ambition to become the responsible energy major, where focus on climate concerns is integral to its strategy and includes reducing the carbon intensity of its products as well as providing solutions for more sustainable transportation, from electric vehicles and trucks to air transportation.
The creation of this agreement evolves and further consolidates the ambition between the two companies to deepen their cross-branch strategic business and technical relationship in shared geographies, in order to maximize the respective business opportunities. For Total, that will involve support from DHL in developing integrated supply chain solutions for upstream, midstream and downstream projects, including the selection of transportation modes, warehousing and customs clearance.
DHL will benefit from Total’s position in sustainable mobility, moving away from a single source of energy to an array of solutions. These include the use of biofuels, high-performance lubricants and mobility services such as TOTAL FLEET, providing solutions for B2B professionals to simplify the lives of fleet managers and optimize the management of their fleets through a network of nearly 17,000 service stations in Europe.
Total also offers EV Charge solutions for businesses, public authorities and individuals which are integrated in the TOTAL FLEET multi-Energies Card, as well as leasing and financing options and renewable energy. In the coming years one of the Group’s objectives is to become the operator of reference, with up to 150,000 charging points operated in 2025 by Total.
The two companies will also work together on health-, safety- and environment-related projects, covering transport safety, driver-training initiatives and response to oil spills and other incidents, as well as exploring shared solutions to common challenges, with the development of best practices and standards.
Published: October 2019
Images: Max Lautenschlaeger/TOTAL; TOTAL