2024 McDermott Sustainability Report - Report - Page 31
Our Path
Our Approach
Environment
Social
Governance
TASK FORCE ON CLIMATE- RELATED FINANCIAL DISCLOSURES (TCFD) INDEX
METRICS AND TARGETS
TCFD Recommendation: Disclose the metrics and targets used to assess
and manage relevant climate-related risks and opportunities where such
information is material.
McDermott employs a set of growing list metrics to assess and manage climate-related risks and
opportunities.
Metrics include:
• Scope 1 and 2 GHG emissions.
• Project backlog and revenue associated with energy transition.
• Construction and Fabrication carbon intensity.
• Vessel intensity.
• Electricity consumed from renewable sources in own operations.
McDermott also utilizes a marginal abatement cost curve (MACC) to identify sustainability opportunities
that can be incorporated into the incentive scheme. We continue to evaluate sustainability initiatives
based on our values, the evolving needs and targets of our customers, the interests of our employees
and stakeholders, and cost-bene昀椀t analysis.
To drive meaningful climate action, we have set goals for emissions reduction. We aim to achieve a net
reduction in Scope 1 and 2 emissions by 50% by 2030 against the 2020 baseline, with a commitment to
reaching net zero by 2050 against our 2020 baseline.
Please refer to page 34 for the disclosure of our greenhouse gas emissions.
To consistently score enterprise-level risks, including climate-related risks, our process uses established
scales for likelihood and potential impacts under the following categories: 昀椀nancial, health, safety and
security, environment, quality, reputation, and social and cultural. Inherent and target risk scores are used
to prioritize mitigations and to gauge their effectiveness.
Framework Alignment
Performance Data
2 0 2 4 S u st a i n a b i l i t y Re p o r t
31
