Thursday, May 16, 2024
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TotalEnergies’ return to Mozambique in conflict with EU law on corporate sustainability

The return of French multinational TotalEnergies to natural gas extraction in Mozambique is raising legal concerns. According to the Euronews news agency, TotalEnergies’ intention to resume operations in the Cabo Delgado region could conflict with the European Union’s Directive on corporate sustainability due diligence.

In 2021, TotalEnergies suspended its operations in the region following a terrorist attack that resulted in several deaths. However, during the presentation of the 2023 annual results, CEO Patrick Pouyanné announced plans to resume operations later this year.

The non-governmental organization Climate Action Network (CAN) Europe criticized TotalEnergies’ decision, saying that ignoring the region’s vulnerability to conflict and violence is alarming, especially in light of the European Union’s proposed law requiring due diligence to avoid adverse impacts on human rights and the environment.

“The law would require the company to assess its operations in a high-risk context, such as Cabo Delgado, and to align with human rights obligations and a climate transition plan,” said Jennifer Kwao of CAN Europe.

Jill McCardle, from Friends of the Earth Europe (FoEE), also expressed concern, pointing out that TotalEnergies would not be in compliance with the CSDDD if the law was implemented. The CSDDD is set to be approved by the European Parliament on April 24 and could result in significant sanctions for companies that do not comply, including fines of up to 5% of the company’s worldwide net turnover. TotalEnergies has yet to comment publicly on the concerns raised by the NGOs.

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