Total rebrands in shift away from fossil fuels
The French oil major Total has rebranded itself as TotalEnergies, the latest energy giant trying to reinvent itself as a green company as public concerns grow over climate change.
Shareholders recently approved the name change and the company’s new logo, which reflects the strategy of transforming itself into a broad energy company that produces green power as well as fossil fuels, with ambitions to become a net-zero emissions company by 2050. TotalEnergies’ new logo — a multicolored lowercase T and E resembling a swooping arrow — replaced its old logo, a multicolored ball of yarn.
“The shareholders voted by a very large majority in favor of this resolution because they perceive the real transformation process in which the company is engaged and have made this vote a support of a bold and demanding strategy,” CEO Patrick Pouyanné said in a statement. “The reality is that TotalEnergies is becoming one of the most active players in the energy transition.”
Total isn’t the first oil major to try to present a greener public image. Two decades ago, British oil giant BP spent millions to rebrand itself in an environmentally friendly light, changing its namesake British Petroleum to “Beyond Petroleum” with a sunflower logo. Although the 2010 Deepwater Horizon oil spill in the Gulf of Mexico derailed BP’s efforts, the oil major over the past year has moved aggressively to pivot from an international oil company to an “integrated energy company.”
More recently, Norwegian oil company Equinor in 2018 rebranded from Statoil, representing a shift away from oil and gas.
A year later, Baker Hughes rebranded itself as an energy technology company after General Electric reduced its ownership of the company in 2019. The oil field services company rolled out a new logo, a green paper clip-looking “mobius” that represents the company’s 2050 net-zero carbon emissions goal.
Another oil field services company, National Oilwell Varco, last year dropped the word “oilwell” from its name, simply going by NOV, to reflect its “broadening mission within energy.”
Utpal Dholakia, a Rice Business professor of marketing, said companies often change names and logos to refresh their image for a new generation of consumers. Oil giants, however, are increasingly rebranding themselves to send a message to the public and investors about their commitment to change business models to prepare for a low-carbon future.
Oil majors are facing increasing pressure from government regulators and shareholders about the risk of climate change to their business, Dholakia said. Shareholders at Exxon Mobil recently added three climate-minded directors to its board, while shareholders at Chevron recently voted to urge the company to lower its customers’ greenhouse gas emissions.
“It’s obvious Total wants to align their image with the new business strategy and wishes of all their stakeholders,” Dholakia said. “The French are extremely environmentally conscious. Total is using this rebrand as a signal to stakeholders and adversarial people that they’re serious about their intentions to become more environmentally friendly.”
TotalEnergies appears to be backing its new image with action. Total recently produced the synthetic aviation fuel made from used cooking oils that powered the first long-haul flight powered by biofuels globally. The French energy company also is developing 16 solar projects in the United States, including nine in Texas.
The company last year set a goal to become a net-zero emissions company by 2050, aiming to rebuild its energy portfolio so renewables and electricity will become up to 40 percent of its sales by 2050.
TotalEnergies generates around 7 gigawatts of power from renewable energy, enough to power 2.1 million homes. By 2025, the company plans to increase its renewable power generation fivefold to 35 gigawatts, enough to power 10.5 million homes.
“It’s obviously too early to tell if their rebrand will be successful,” Dholakia said. “But they’re clearly sending a message.”