2025 McDermott Sustainability Report - Report - Page 27
OUR PATH
OUR APPROACH
ENVIRONMENT
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
TASK FORCE ON CLIMATE-RELATED FINANCIAL
DISCLOSURES (TCFD) REPORT 2025
GOVERNANCE
Board Oversight
The Board of Directors oversees climate-related risks and opportunities
annually as part of its broader oversight of sustainability performance,
strategy, risk management, regulatory compliance, and reporting. This
oversight is supported by the Board’s committee structure:
Governance Committee: Oversees climate-related strategy,
priorities, targets, climate risk management approach, and
regulatory reporting.
Risk Committee: Reviews climate-related risks and opportunities
within the Company’s risk management processes, including
project-level risks.
Audit Committee: Oversees sustainability disclosures, including that
subject to independent assurance.
Compensation Committee: Oversees alignment between
sustainability and climate performance and incentive design.
Climate-related matters are escalated through these committees
to enable timely oversight and decision-making.
Management Oversight
Management is responsible for implementing the Company’s climaterelated strategy and managing associated risks and opportunities.
The Executive Sustainability Committee sets strategic direction and
monitors progress against targets.
Execution is supported by the Sustainability and Governance
function, led by the EVP of Sustainability and Governance (Chief Legal
Of昀椀cer), which coordinates inputs across key functions and ensures
consistency in performance tracking and reporting. Sustainability
resources embedded across operations work with operational teams
to report project and site level metrics and support implementation of
sustainability processes.
See page 7 for further details on our sustainability governance structure.
STRATEGY
Climate-related risks and opportunities
McDermott identi昀椀es climate-related risks across short (1 year),
medium (5 years) and long-term (>5 years) horizons and considers
these in business strategy and planning. Assessments focus on
impacts to health and safety, continuity of operations, evolving energy
systems, implications for our workforce and host communities, vessels,
fabrication yards, and construction sites, and customers’ energy
infrastructure needs.
Risk and opportunity owners work with the Sustainability & Governance
function to assess impacts, de昀椀ne mitigation actions, and feed these
into 昀椀nancial and operational planning.
Climate-related risks
Physical risks
Extreme heat and humidity affecting workforce safety and
productivity
Acute weather events causing HSE and operational impacts
Sea-level rise from extreme tides and cyclone-driven storm
surges impacting coastal assets and project sites through access
disruption, delays, and asset damage
Exposure related to operational greenhouse gas emissions
Transition risks
Tightening ESG / climate regulation increasing compliance burden
and execution risk
Disruption of supply chain
Energy transition–related demand, policy and technology
uncertainty
Climate-related opportunities
Energy ef昀椀ciency: Increased use of ef昀椀cient construction and
installation practices
Renewable energy: Increased availability and use of alternative
energy sources
Energy transition: Access to new markets
Energy transition: Development of alternative or lower-carbon
solutions
Impacts on business, strategy and
昀椀nancial planning
Climate considerations inform operational priorities and project
delivery planning. Climate-related risks may in昀氀uence 昀椀nancial
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