TotalEnergies SE has decided to appeal the judgment rendered on June 25, 2026, by the Paris Judicial Court in legal proceedings brought by certain associations under the French duty of vigilance law. The company’s Board of Directors deliberated and concluded that the lower court’s decision misinterprets the scope of the legislation. This appeal is significant for energy sector firms, as it challenges whether corporations are liable for climate risks associated with customers’ use of their products, a distinction TotalEnergies argues is critical for legal certainty and freedom to conduct business.

Legal Arguments for Appeal

TotalEnergies outlined two primary grounds for its appeal before the Paris Court of Appeal. First, the company aligns with the position taken by the Public Prosecutor’s Office, which stated that climate change is a worldwide phenomenon that is "a matter for everyone, but essentially a responsibility of the international community of States." Consequently, TotalEnergies argues that climate change does not fall within the scope of the French duty of vigilance law.

Second, the company contends that the duty of vigilance law is intended to drive responsible corporate behavior regarding risks resulting from companies’ own activities, those of their subsidiaries, and those of their suppliers and subcontractors. However, the law does not encompass clients’ activities over which companies do not have control. TotalEnergies emphasized that it does not decide whether a motorist chooses to drive a petrol-powered vehicle, use biodiesel, or drive an electric vehicle, but rather seeks to ensure motorists have access to the energy they choose to use.

Regulatory Context

The company argued that imposing companies in energy, defense, aeronautics, or automotive sectors to control risks resulting from the use of their products by their customers is inconsistent with the objectives of the law. TotalEnergies noted that this interpretation conflicts with principles of legal certainty and freedom to conduct business. In support of this view, the company highlighted that the European Corporate Sustainability Due Diligence Directive (CSDDD) does not include customers’ activities within its scope.

What the Numbers Show

While this filing contains no financial metrics, the legal strategy reveals a significant regulatory divergence between national and European frameworks. TotalEnergies’ reliance on the CSDDD’s exclusion of customer activities suggests an expectation that French courts will align with broader EU due diligence standards. This argument aims to limit corporate liability to direct operational chains rather than downstream consumer behavior, potentially setting a precedent for how energy firms interpret vigilance obligations globally.

TotalEnergies SE declared a second interim dividend of €0.90 per share for fiscal year 2026, an increase of 5.9% compared to the dividends paid for fiscal year 2025. The Board of Directors, chaired by CEO Patrick Pouyanné, approved the distribution on July 22, 2026, aligning with the company's policy to prioritize dividend growth reflecting cash flow expansion.

The dividend will be paid exclusively in cash. Shareholders on Euronext will receive payment on January 5, 2027, while those on the NYSE will receive payment on January 22, 2027. The ex-dividend date for both markets is set for December 31, 2026. To ensure orderly payment, a transfer freeze between the two markets will be in effect from December 30, 2026, at 3:00 p.m. New York time until the opening of the Euronext market on January 5, 2027.

For shareholders on the U.S. register, the dividend will be paid in U.S. dollars. The applicable EUR/USD exchange rate will be the WM/Refinitiv Intra-Day spot rate published at 2:00 p.m. Paris time on January 14, 2027. The record date for NYSE-listed shares remains December 31, 2026.

The Board emphasized that future interim or final annual dividends beyond this payment have not yet been decided or approved. The decision to distribute dividends and the determination of their amount and dates remain at the full discretion of the Board, subject to factors such as financial results, balance sheet strength, and commodity prices.