2025 McDermott Sustainability Report - Report - Page 49
OUR PATH
OUR APPROACH
ENVIRONMENT
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
Term/Abbreviation
De昀椀nition
Net Carbon Emissions
This is the sum of carbon emissions from all energy sources minus the sum of all carbon emissions offset within the reporting period.
Non-CO2 Greenhouse Gases
These are emissions such as N2O (nitrous oxide) and CH4 (methane) which along with carbon dioxide (CO2), contribute to the greenhouse
effect and global warming, but they differ in their sources, lifetimes in the atmosphere, and global warming potential (GWP).
Operational control
McDermott is deemed to have operational control over a site when one or more of the following conditions are met: it is identi昀椀ed as the
permittee or operator in the site’s environmental permits; it has been contractually designated as the operator or primary subcontractor,
thereby assuming responsibility for site operations; or it exercises authority over the Health, Safety, and Environmental (HSE) management
system in use at the site. These boundaries are reviewed on an annual basis and are continually re昀椀ned to align with the GHG Protocol and
applicable regulations.
Energy Attribute Certi昀椀cate (EAC)
These are tradeable, market-based instruments that represent the bearer’s property rights to non-power attributes of a speci昀椀c amount
of electricity that has been generated from a renewable energy source. The certi昀椀cates are issued in units of one megawatt-hour (MWh)
of electricity generated from a validated energy resource. Based on geographic location, there are several kinds of EACs – Guarantees of
Origin (GOs), International RECs (I-RECs), Renewable Energy Certi昀椀cates (RECs).
Carbon Emission Offset
This represents the sum of carbon credits (e.g., through participation in carbon storage or removal projects) from the reduction, removal,
or avoidance of GHG emissions from a speci昀椀c project that is used to compensate for GHG emissions occurring in our operations.
Offsets are purchased based on McDermott’s agreed offset strategy. Contracts and purchase orders (POs) are countersigned and include
clauses that ensure the offsets re昀氀ect MDR’s strategy, comply with human rights standards, and deliver the intended environmental and
social bene昀椀ts.
De Minimis Threshold
Energy metrics are excluded from reporting when associated emissions are considered operationally insigni昀椀cant, and the site quali昀椀es for
exclusion based on organizational criteria such as headcount, site type, and operational phase.
FEED
Front End Engineering Design.
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