2024 McDermott Sustainability Report - Report - Page 4
Our Path
Our Approach
Environment
Social
Governance
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
A MESSAGE TO OUR STAKEHOLDERS
I am pleased to share McDermott’s 2024 Sustainability Report,
highlighting our achievements and progress in support of delivery
of lower-carbon energy and commitment to project excellence,
responsible business, and safe and sustainable operations. This is our
昀椀fth annual report, re昀氀ecting our commitment to sustainability as a
core business value.
OUR APPROACH TO SUSTAINABILITY
Our approach to sustainability is grounded in practical action across
our operations and at every stage of project delivery. We have more
than 100 years of experience in managing the entire lifecycle of
projects, delivering engineering, design, fabrication, construction,
and commissioning for customers. Leveraging off our marine and
fabrication assets, coupled with our highly skilled workforce, this
integration enables us to tackle complex delivery in serving our
customers.
OUR STRENGTHS
We are committed to continuous improvement and actively integrate
safety and sustainability priorities and strategies at every level of
execution. Our strengths include:
• Detailed, technology-supported assessments of energy and fuels
at our sites to support meaningful carbon reduction and other
contributions.
• Industry and academic partnerships that support innovation in lowcarbon solutions for our customers and operations.
• A respectful and inclusive corporate culture, supported by effective
programs for the safety and well-being of our workforce.
• Proactive approaches to human rights due diligence, risk
identi昀椀cation, and rigorous ethics and compliance programs to
ensure that our employees and contractors understand our values
and their rights under our Code of Business Conduct.
We regularly assess risk and materiality by conducting internal reviews
to identify our most meaningful opportunities and focus our efforts on
achieving the greatest impact.
OUR PERFORMANCE
OUR REPORTING
Our data-based strategic approach, which integrates input across our
operations and functions, delivered solid achievements in 2024.
We monitor trends and regulations, and are prepared to meet current
and anticipated reporting requirements. This year, in preparation
for European Union (EU) Corporate Sustainability Reporting Directive
(CSRD), we strengthened our internal controls framework, and
developed key performance indicators aligned with CSRD. We believe
this will enhance our insights into our sustainability performance, and
strengthen our data-based and transparent reporting.
We recorded an industry-leading 0.07 Total Recoverable Incident Rate
(TRIR) and 0.01 Lost Time Incident Rate (LTIR) safety performance.
We expanded to secure 80% of our grid electricity power from
renewable sources.
We continue to deliver the world’s 昀椀rst large-scale green steel project,
transforming steel production with over 95% lower carbon emissions
compared to conventional steelmaking, which demonstrates our ability
to support the decarbonization of other hard-to-abate sectors. These
efforts remain critical in the energy transition as we look to develop
renewable energy projects to meet increasing demand for energy in
a sustainable way. Transitioning into other industries, where we are
uniquely positioned to capitalize on our assets, skills, and experience, is
a key part of our business strategy.
Our Batam yard commenced fabrication of our second high-voltage
direct current (HVDC) offshore converter station for TenneT, supporting
Europe’s carbon-neutral targets. TenneT plans to convert up to 2 GW of
offshore wind-generated electricity from 66kV of alternating current.
In 2024, we drove energy ef昀椀ciency initiatives through our fabrication
yards, achieving a 35% reduction in carbon intensity. Our efforts were
validated through ISO 50001 energy management certi昀椀cation of four
of our fabrication yards, signaling our commitment to responsible use
of energy and resources.
We received national government recognition for capacity building
and technology transfer programs in Uganda for the second
consecutive year. This award is a great honor, re昀氀ecting that the
impact of our programs is not only felt by the country’s 1,700 direct
participants who are given crucial skills, but also by their families and
surrounding communities.
OUR PEOPLE
Our people are the heart of our business operations, and we work hard
to attract and retain a talented, creative, global workforce of more
than 32,000 employees representing over 100 nationalities. In 2024,
we continued to expand our Talent & Organizational Development
programs and recorded a 100% increase in offerings and participation
in training academies and other internal training.
Michael McKelvy
President & Chief Executive Of昀椀cer
Rachel Clingman
Executive Vice President Sustainability and Governance
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