Impact Investing
TotalEnergies Challenges Landmark Climate Ruling and Disputes Customer Liability for Emissions
The French energy company TotalEnergies is appealing a decision by the Paris Judicial Court, which, for the first time in France, established that the company’s monitoring plan must also take into account the climate impacts resulting from the use of the products it sells, as part of the law on the duty of vigilance.
TotalEnergies has decided to appeal the ruling of the Paris Judicial Court of June 25th, 2026, which required the French energy company to align its operations with climate change objectives. The decision follows a review of the ruling by the company’s Board of Directors, which has chosen to challenge the ruling in the proceedings initiated by several associations under the French law on duty of vigilance (devoir de vigilance).
The ruling is considered a significant precedent in French climate litigation because the court held that climate change could fall within the scope of the duty of vigilance legislation and that, consequently, the plan prepared by TotalEnergies must also consider emissions generated by customers’ use of fuels (so-called Scope 3 emissions).
The case represents one of the most significant climate litigation cases against a major energy company, as it focuses on the issue of corporate responsibility for the emissions generated by the end-use of their products.
According to TotalEnergies, requiring companies in the energy, defense, aeronautics, and automotive sectors to monitor the risks arising from the use of their products by customers would not be consistent with the objectives of the regulation, nor with the principles of legal certainty and freedom of enterprise.
In justifying its appeal, TotalEnergies also cites the European Corporate Sustainability Due Diligence Directive (CSDDD), emphasizing that the EU regulation does not include customer activities within its scope. According to the company, this element confirms a distinction between corporate responsibility for their own value chain and the responsibility arising from the autonomous decisions of end users. The arguments will now be submitted to the Paris Court of Appeal, which is called upon to review the decision of the lower court.
The TotalEnergies case is particularly significant
The case is part of a broader context of growing climate litigation against major energy companies, which increasingly calls into question the role of companies in preventing and managing the environmental impacts of their operations. Internationally, the outcomes of these cases have so far been mixed. One example is Shell’s case in the Netherlands, where the landmark ruling requiring the company to reduce its emissions was subsequently overturned on appeal and is now pending before the Dutch Supreme Court.
The TotalEnergies case is particularly significant because it addresses one of the most controversial issues in climate litigation: to what extent companies can be held responsible not only for the emissions generated directly by their own operations, but also for those associated with the use of products sold on the market.
The outcome of the appeal could therefore help further define the boundaries of corporate climate responsibility within the framework of due diligence and corporate sustainability regulations.
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(Featured image by Tatos Mansour via Unsplash)
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First published in ESG NEWS. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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