Total CEO pursues clean growth

Christophe de Margeriel
Chairman and CEO of Total

By Cathy Rose A. Garcia

Christophe de Margerie, chairman and CEO of France’s biggest oil company Total, does not fit anyone’s preconceived image of what a chief executive of a Big Oil company is like.

Nicknamed ``Mr. Moustache’’ for obvious reasons, de Margerie has a reputation for candor and humor that few corporate leaders dare show the media or public.

The Korea Times met with de Margerie at the Sheraton Grande Walkerhill Hotel, Friday, a day after the conclusion of the G20 Business Summit. The soft-spoken French CEO had participated in the summit’s "Green Growth" session, where issues such as energy security, low-carbon and renewable energy, energy efficiency and green jobs were discussed.

The irony of having oil companies such as Total participate in this session was not lost on de Margerie, who admitted it was ``strange.’’ He does not like the term ``green growth,’’ and would prefer it be called ``clean growth’’ instead (``But I’m not in charge of names,’’ he quipped).

``We need growth and to be cleaner... Sometimes, we are puzzled with green growth, that it was only with `green’ things that you can make growth,’’ he said.
``(But) it is not just renewable energy where you can be green. You can be green in being efficient through existing energies. Using less energy and finding ways to be more efficient, by definition, it is the first contribution to green growth and the responsibility comes from the sources of energy, oil and gas.”

Fossil fuels, such as coal, natural gas and oil, generate more than 80 percent of the world’s power, and are responsible for about 60 percent of global greenhouse gas emissions. By 2030, fossil fuels will drop to about 75 percent of the total energy supply, and is seen to continue to be a major source of energy.

The Total chairman bristled at the idea of a shift from fossil fuels to low-carbon and renewable sources of energy, such as nuclear, solar and biomass. Instead, he advocates an energy model where fossil fuels and renewable ones complement each other as a way to fulfill the growing demand for energy, stimulate economic growth and protect the environment.

``We need fossil fuels and renewables at the same time... Other sources of renewable energy, we know it will be far from sufficient. We have to get things moving. To say that it’s clean or not clean? No, that’s energy and it is for growth. We need employment and employment will come from all energy, and not only from green ones,’’ he said.

Total manages its greenhouse gas emissions in its industrial operations by optimizing energy efficiency, carbon dioxide capture and storage and development of low-carbon energies.

The fifth largest publicly traded oil and gas company in the world, Total posted 131.3 billion euros in sales and 8.4 billion euros in profit in 2009.

Like other Big Oil companies, Total has to deal with its image problems with the public, but de Margerie isn’t losing any sleep over it. His priority is to make sure that Total is not just paying lip service on the issue of climate change, but to show actual results.

``We are an oil and gas company and we are proud of it,’’ he said. ``We are really concerned about the environment and climate change. Words are not enough to make it work... It is part of our duty that people will see this not by what we say, but with results.”

De Margerie is well aware that a big part of Big Oil’s negative image stems from its huge profits. ``We want people to understand that thanks to this money we can invest on new energy and clean ways of producing it and finding solutions to the problems. The problem is not the money you are earning but what you do with it. For investments, we need money for this,’’ he explained.

In Korea, Total’s presence is through a joint venture with Samsung. Samsung Total Petrochemicals operates a large petrochemical complex in Daesan, South Chungcheong Province. But the company’s dealings with Korean firms are not limited within the country. Many of its contractors for overseas projects are Korean companies. In Yemen, Total is working with the Korea National Oil Company and other Korean companies in an exploration project.

This may have been why de Margerie said, despite it only being his second time in the Korean capital, he feels comfortable here. ``I have a feeling that I have been here many times. I have been meeting with many Koreans, our partners and contractors, all over the world.’’

As for the G20 Business Summit, de Margerie said he was impressed by the collaboration among global CEOs in coming up with recommendations on trade, finance, green growth and corporate social responsibility, that were presented to the G20 leaders.

Now, the business leaders have to ensure that these recommendations would be put into action. ``As CEOs, we have to make sure it has not been done for nothing. Our capacity for working together has already in itself been a great success... We can prove that we can be efficient through meetings like this one,’’ de Margerie said.

cathy@koreatimes.co.kr