2024 McDermott Sustainability Report - Report - Page 8
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
GOVERNANCE STRUCTURE
McDermott’s governance structure relevant to sustainability-related matters
OUR BOARD OF DIRECTORS
EXECUTIVE SUSTAINABILITY COMMITTEE
BUSINESS LINE SUSTAINABILITY LEADS
The McDermott Board of Directors (Board) oversees sustainabilityrelated matters, guiding the company’s strategic direction,
assessment of risks and opportunities, 昀椀nancial planning, and
performance.
Our Executive Sustainability Committee sets overall sustainability
strategy and transition plans, including setting targets and
monitoring progress. We track and report sustainability metrics
across all our global operations, with project level quarterly
reporting to our Executive Committee to increase accountability
for sustainability factors such as emissions within project
execution.
Our operational sustainability leads drive the implementation
of management processes that integrate sustainability into
our daily operations. They execute the strategy set by the
sustainability governance function, which includes the framework,
methodologies, and guidance across our business operations.
BOARD COMPETENCIES
McDermott Board members come from diverse industries and
backgrounds. All have strategic and executive management
expertise and a wide range of experience in the 昀椀eld of
sustainability and responsible business.
McDermott has assessed the competency and composition of
Board members across a wide range of sustainability-related
areas: 67% have extensive experience in overseeing employee
well-being, human rights, culture, and ethical supply chain
management; 58% have experience overseeing sustainability
strategy and management; and 50% have been active in
evaluating climate risks and sustainability regulation and
compliance.
The Board has four committees, each of which is responsible for
speci昀椀c areas of oversight and governance:
• Governance Committee: accountable for McDermott’s
sustainability strategy, priorities, targets, budgeting,
management of climate risk, and regulatory reporting.
• Risk Committee: reviews and discusses project risks and
opportunities within the organization‘s risk management
procedures.
• Audit Committee: oversees disclosures that require independent
assurance.
• Compensation Committee: guides and approves the company’s
incentive program related to sustainability and climate
performance.
SUSTAINABILITY EMPLOYEE RESOURCE GROUPS
SUSTAINABILITY AND GOVERNANCE FUNCTION
Our Executive Vice President of Sustainability and Governance
leads a global team of sustainability professionals embedded
within our operations. They track and report sustainability metrics
across all sites, with quarterly project-level updates to the
Executive Committee to drive accountability on business priorities
such as emissions, human rights, and local content.
Our Sustainability Employee Resource Groups (ERGs) drive
awareness of our sustainability priorities and initiatives and
participate in voluntary sustainability activities to support
corporate-level strategies and values.
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