2025 McDermott Sustainability Report - Report - Page 44
OUR PATH
OUR APPROACH
ENVIRONMENT
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
BASIS OF PREPARATION
1. Purpose
4. Performance measure
The purpose of this Basis of Preparation (BOP) document is to outline
the process for calculating and reporting sustainability metrics
relating to Scope 1 and 2 emissions, within the broader context of
Environmental, Social, and Governance (ESG) topics. This includes detail
on the key judgements, estimates, or assumptions used. The document
also outlines the data collection and consolidation methodologies
to increase standardization of reporting between different reporting
entities and reporting periods.
Percentage change in the net amount of Scope 1 and Scope 2 marketbased carbon emissions between 1st January 2025 and 31st December
2025 versus the net amount of Scope 1 and Scope 2 market-based
emissions in the 2020 calendar year.
For the 2025 reporting cycle, and in accordance with McDermott’s GHG
Recalculation and Rebaselining Policy aligned with the GHG Protocol,
we have recalculated our baseline and restated prior-year 昀椀gures to
re昀氀ect the divestment of the CB&I business.
A restatement is triggered when there is a cumulative change of 5%
or more in combined Scope 1 and Scope 2 (market-based) emissions
in any reporting period, arising from factors such as error corrections,
methodological updates, divestments, or other material boundary
changes.
No carbon offsets, carbon credits, or greenhouse gas (GHG)
removals have been used to reduce the reported emissions or to
achieve climate-related targets during this reporting period. Where
organizational boundary changes occur between the baseline
year and the reporting period, such as the addition or removal of
operational sites, these changes are identi昀椀ed to avoid attributing
structural shifts to actual emission reductions. Reported changes in
emissions are also assessed to distinguish between reductions driven
by operational improvements and variations resulting from differences
in activity levels across the two periods.
Metric
Relevant Reporting
Regulation / Survey
Coverage of this report re昀氀ects the period from January 1, 2025 to
December 31, 2025.
% Reduction in total Scope 1 and Scope
2 market-based emissions compared to
2020 baseline
GHG Protocol
CDP
TCFD
Total net Scope 1 and Scope 2
market-based emissions (metric tonnes
CO2e) for the reporting year (2025),
with 2020 values shown for baseline
comparison.
GHG Protocol
CDP
TCFD
We aim to reduce our Scope 1 and Scope 2 emissions by 50% by
2035 and net-zero by 2050, both vs. a 2020 baseline. We are currently
evaluating interim milestones as part of our broader decarbonization
planning process.
GHG Protocol
CDP
TCFD
Total Scope 2 market-based emissions
(metric tonnes CO2e) for the reporting
year (2025), with 2020 baseline values for
comparison.
GHG Protocol
CDP
TCFD
Total Scope 2 location-based emissions
(metric tonnes CO2e) for the reporting
year (2025), with 2020 baseline values for
comparison.
GHG Protocol
CDP
TCFD
Total Scope 1 and 2 location-based
emissions (metric tonnes CO2e) for the
reporting year (2025), with 2020 baseline
values for comparison.
GHG Protocol
CDP
TCFD
5. Supporting metrics covered by this BOP
2. Reporting period
3. Goals
Total Scope 1 emissions (metric tonnes
CO2e) for the reporting year (2025), with
2020 baseline values for comparison.
6. Reporting scope
The sites included within the reporting scope, as well as the approach
to determining in-scope energy metrics for sites, are outlined below.
Sites
The reporting scope covers all emissions and energy consumption
associated with McDermott’s operations, including both 昀椀xed facilities
and mobile sources. The approach to determining in-scope locations
and energy metrics is outlined below.
Any facility where McDermott does not have operational control is
excluded.
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