Registration document 2007 - Total.com

Risk management
Risk evaluations lead to the establishment of management
measures that are designed to prevent and decrease the
environmental impacts, to minimize the risks of accidents and to
limit their consequences. These measures may be put into place
through equipment design itself, reinforcing safety devices,
designs of structures to be built and protections against the
consequences of environmental risks. Risk evaluations may be
accompanied, on a case by case basis, by an evaluation of the
cost of risk control and impact reduction measures.
TOTAL is working to minimize industrial and environmental risks
inherent to its activities by putting in place performance
procedures and quality, safety and environmental management
systems, as well as by moving towards obtaining certification for
or assessment of its management systems (including
International Safety Rating System, ISO 14001, European
Management and Audit Scheme), by performing strict
inspections and audits, training staff and heightening awareness
of all the parties involved, and by an active investment policy.
More specifically, following up on the 2002-2005 plan, an action
plan was defined for the 2006-2009 period. This plan is focused
on two initiatives for improvement: reducing the frequency and
seriousness of on-the-job accidents and managing industrial
risks. The results related to reducing on-the-job accidents are in
line with goals, with a significant decrease in the rate of accidents
(with or without time-lost) per million hours worked by nearly 70%
between the end of 2001 and the end of 2006. In terms of
industrial risks, this plan’s initiatives include specific organization
and behavioral plans as well as plans to minimize risks and
increase safety for people and equipment.
Several environmental action plans have been put in place in
different activities of the Group covering periods up until 2012.
These plans are designed to improve environmental performance,
particularly regarding the use of natural resources, air and water
pollution, waste production and treatment, and site
decontamination. They also contain quantified objectives to
reduce greenhouse gas emissions, water pollution and sulphur
dioxide emissions and to improve energy efficiency. As part of its
efforts to reduce greenhouse gases and combat climate change,
in December 2006 the Group committed to reducing gas flaring
at its Exploration & Production sites by 50% compared to 2005
volumes by 2012. The Group also expects that 75% of its major
sites will receive ISO 14001 certification by 2007. These activities
are monitored through periodic, coordinated reporting by all
Group entities.
More detailed information on TOTAL’s actions regarding safety
and environmental concerns is provided in the separate report
entitled Sharing Our Energies published by the Group.
Although the Group believes that, according to its current
estimates, contingencies or liabilities related to health, safety and
environmental concerns would not have a material impact on its
consolidated financial situation, its cash flow or its income, due
to the nature of such concerns it is impossible to predict if in the
future these types of commitments or liabilities could have a
material adverse effect on the Group’s activities.
Asbestos
Risk Factors
Industrial and environmental risks
4
Like many other industrial groups, TOTAL is involved in claims
related to occupational diseases caused by asbestos exposure.
The circumstances described in these claims generally concern
activities prior to the beginning of the 1980s, long before the
complete ban on the use of asbestos in most of the countries
where the Group operates (January 1, 1997 in France). The
Group’s various activities are not particularly likely to lead to
significant exposure to asbestos related risks, since this material
was generally not used in manufacturing processes, except in
limited cases. The main potential sources of exposure are related
to the use of certain insulating components in industrial
equipment. These components are being gradually eliminated
from the Group’s equipment through asbestos-elimination plans
that have been underway for several years. However, considering
the long period of time that may elapse before the harmful results
of exposure to asbestos manifest themselves (up to 40 years),
we anticipate that claims may be filed in the years to come.
Asbestos related issues have been subject to close monitoring in
all branches of the Group. As of December 31, 2006, the Group
estimates that the ultimate cost of all asbestos related claims
paid or pending is not likely to have a material adverse effect on
the financial situation of the Group.
TOTAL – Registration Document 2006 85