2025 McDermott Sustainability Report - Report - Page 26
OUR PATH
OUR APPROACH
ENVIRONMENT
Our approach
We conducted our engagement in accordance with International
Standard on Assurance Engagements 3000 (Revised), Assurance
Engagements Other than Audits or Reviews of Historical Financial
Information and ISAE 3410, Assurance Engagements on Greenhouse
Gas Statements, as promulgated by the International Auditing and
Assurance Standards Board (IAASB).
Those standards require that we plan and perform our engagement
to express a conclusion on whether we are aware of any material
modi昀椀cations that need to be made to the Subject Matter in order for
it to be in accordance with the Criteria, and to issue a report.
The procedures performed in a limited assurance engagement vary in
nature and timing from, and are less in extent than for, a reasonable
assurance engagement. Consequently, the level of assurance
obtained in a limited assurance engagement is substantially lower
than the assurance that would have been obtained had a reasonable
assurance engagement been performed. Our procedures were
designed to obtain a limited level of assurance on which to base
our conclusion and do not provide all the evidence that would be
required to provide a reasonable level of assurance.
Although we considered the effectiveness of management’s internal
controls when determining the nature and extent of our procedures,
our assurance engagement was not designed to provide assurance
on internal controls. Our procedures did not include testing controls
or performing procedures relating to checking aggregation or
calculation of data within IT systems.
A limited assurance engagement consists of making enquiries,
primarily of persons responsible for preparing the subject matter and
related information and applying analytical and other appropriate
procedures.
Because a limited assurance engagement can cover a range
of assurance, the detail of the procedures we have performed is
included below, so that our conclusion can be understood in the
context of the nature, timing and extent of procedures we performed:
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
Conducted interviews with relevant staff to understand the data
reporting processes, the key sources of information and the
boundaries used for reporting.
non-昀椀nancial information, including the precision of different
techniques, can differ, yet be equally acceptable. This may affect the
comparability between entities, and over time.
Read key documentation and con昀椀rmed our understanding of
the key risks to data integrity and the controls associated with the
collection and collation of the data.
Our conclusion is based on historical information and the projection
of any information or conclusions in the attached report to any future
periods would be inappropriate.
Assessed the processes for generating data, at a reporting entity
(site) level at a sample of sites. This included testing the application
of Group reporting protocols and the reliability of primary data.
The GHG (Greenhouse Gas) quanti昀椀cation process is subject to
scienti昀椀c uncertainty, which arises because of incomplete scienti昀椀c
knowledge about the measurement of GHGs. Additionally, GHG
procedures are subject to estimation (or measurement) uncertainty
resulting from the measurement and calculation processes used to
quantify emissions within the bounds of existing scienti昀椀c knowledge.
Performed reporting process walkthroughs with relevant process
owners, to understand the initiation, processing, and reporting
of data relevant to the Subject Matter, as well as the review and
controls that underpin the process.
Tested the accuracy and completeness of a sample of data collated
by reviewing evidence from data providers.
Tested the accuracy of data consolidation and aggregation for
reporting purposes – including testing the accuracy of a sample
of emission factors and the output of any speci昀椀c tools, systems or
estimation methods.
Assessed the presentation of the subject matter and supporting
narrative in the McDermott 2025 Sustainability Report to check that
this is consistent with our understanding of performance gained
from the earlier steps.
We also performed such other procedures as we considered
necessary in the circumstances.
Use of our report
This report is produced in accordance with the terms of our
engagement letter dated 01/12/2025, solely for the purpose of reporting
to the directors of McDermott International Ltd in connection with the
Subject Matter for the period ended 31/12/2025.
Those terms permit disclosure on McDermott’s website, solely for the
purpose of McDermott International Ltd showing that it has obtained an
independent assurance report in connection with the Subject Matter.
To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s
directors as a body, for our work, for this report, or for the conclusions
we have formed. This engagement is separate to, and distinct from, our
appointment as the auditor to the Company.
Inherent limitations
Non-昀椀nancial information is subject to more inherent limitations
than 昀椀nancial information, given the characteristics of the
underlying subject matter. Because there is not yet a large body
of established practice upon which to base measurement and
evaluation techniques, the methods used for measuring or evaluating
Ernst & Young LLP
London
23rd March 2026
26
