2025 McDermott Sustainability Report - Report - Page 48
OUR PATH
OUR APPROACH
ENVIRONMENT
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
9. Terms & abbreviations
Term/Abbreviation
De昀椀nition
Carbon Emissions
This includes the total amount of greenhouse gas (GHG) emissions, generally expressed in tonnes of carbon dioxide equivalent (tCO2e)
that is directly or indirectly caused by McDermott’s activities or accumulated through the stages of the life cycle of products. McDermott
shall account for and report on “all signi昀椀cant emissions” of common GHGs listed (i.e. CO2, CH4 and N2O) in tCO2e as they are predominant
in our operations.
CO2 Equivalent (CO2e)
Metric measure used to compare the emissions from various greenhouse gases on the basis of their global-warming potential (GWP), by
converting amounts of other gases to the equivalent amount of carbon dioxide with the same global warming potential.
Greenhouse Gases (GHG)
Gases that absorb infrared radiation, trap heat in the atmosphere, and contribute to global warming.
Scope 1 Emissions
In line with the GHG Protocol, direct GHG emissions occurring from sources that McDermott owns or controls, for example: emissions from
combustion in company-owned equipment, vehicles and vessel 昀氀eet etc.
Note: Biogenic emissions resulting from the combustion of biofuels are excluded from Scope 1 GHG emissions reporting.
Scope 2 Emissions
In line with the GHG protocol, indirect emissions occurring from the generation of purchased electricity, steam, heating or cooling
consumed by McDermott.
Non-CO2 Greenhouse Gases (Non-CO2 GHG)
These are emissions such as N2O (nitrous oxide) and CH4 (methane) which along with CO2 contribute to greenhouse effect and global
warming, but they differ in their sources, lifetimes in the atmosphere, and global warming potential (GWP).
Biogenic Emissions
Biogenic emissions are greenhouse gas emissions that come from biological sources, such as the combustion or decomposition of
biomass (e.g., wood, crops, manure, or biofuels). These emissions are part of the natural carbon cycle and are reported separately from
fossil fuel emissions. Biomass CO2 emissions are reported outside of Scope 1 as biogenic emissions and CH4, N2O emissions are reported as
part of Scope 1 emissions.
Location-based Carbon Emissions
This re昀氀ects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data).
Market-based Carbon Emissions
This re昀氀ects emissions from electricity consumed after taking contractual instruments such as renewable energy contracts into account.
This includes renewable electricity generated by a supplier that is purchased under a supply agreement that is supported by either
Renewable Energy Certi昀椀cates (RECs), Renewable Energy Guarantees of Origin (REGOs) or as part of a Power Purchase Agreement (PPA).
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