French court rules oil companies liable for customer emissions

A French court has ruled that European oil and gas company TotalEnergies must report on emissions not only from its own operations but also from its customers' use of its products. This decision significantly expands corporate legal accountability for climate change impacts.

The ruling requires TotalEnergies to provide a report within six months detailing emissions from entities like airlines, motorists, and other consumers of its oil and petroleum products. These customer-generated emissions constitute the vast majority of the company's total climate footprint. The company must also assess the environmental, human rights, and health risks associated with these emissions and outline its plans to mitigate them.

TotalEnergies has stated it will comply with the ruling, though an appeal is still possible. The verdict strengthens corporate accountability efforts against oil companies in France and may set a precedent for similar EU-wide regulations scheduled to take effect in 2028.

The French law mandating such reporting originated from the 2013 collapse of a garment factory in Bangladesh, leading to demands for companies to be held responsible for their entire supply chain and product lifecycle emissions.

TotalEnergies' own operations result in approximately 34 million metric tons of carbon dioxide emissions annually. Emissions attributed to its customers are estimated to be roughly ten times that amount, placing the company's overall climate impact on par with Australia's annual national emissions.