2025 McDermott Sustainability Report - Report - Page 7
OUR PATH
OUR APPROACH
ENVIRONMENT
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
SUSTAINABILITY GOVERNANCE
Our sustainability governance ensures
environmental, social and governance factors
remain strategic priorities and secure longterm value creation
Governance Structure
Our Board of Directors oversees sustainability strategy, performance,
risk management, regulatory compliance, and reporting.
Board Competencies
Our Board members bring diverse industry experience and embed
sustainability into our long-term strategy.
Each year, we assess Board competency across key sustainability
topics: sustainability management and leadership (68%), carbon
accounting and emissions reduction (56%); environmental
management (64%); ESG regulation and compliance (66%);
human rights and workers’ welfare (66%); ethical supply chain
management (64%).
In 2025, three new Board appointments under CEO Michael McKelvy
as Chair strengthened alignment between executive leadership
and Board oversight and added 昀椀nance, governance, operations,
and long-term investor perspectives.
Our Board operates four committees each responsible for speci昀椀c
areas of oversight and governance:
SUSTAINABILITY GOVERNANCE STRUCTURE
The Governance Committee guides our sustainability strategy,
priorities and goals, budgeting, management of climate risk, and
regulatory reporting.
Guides and approves overall company strategy and vision.
The Risk Committee evaluates speci昀椀c project risks and
opportunities, including climate risk, within the organization’s risk
management procedures.
EXECUTIVE COMMITTEE
The Audit Committee oversees disclosures that require
independent assurance.
The Compensation Committee guides and approves the
Company’s incentive program, including incentives related to
sustainability and climate performance.
BOARD OF DIRECTORS
Establishes sustainability strategy, approves targets and capital allocations,
and monitors progress through regular reporting.
SUSTAINABILITY AND GOVERNANCE FUNCTION
Led by the Executive Vice President, this function integrates Legal, Ethics
and Compliance, Sustainability, Human Rights, Communications, Contracts
Management, and Enterprise Risk Management to ensure coordinated oversight,
accountability, and consistent execution of the sustainability strategy.
BUSINESS LINE SUSTAINABILITY LEADERSHIP
Operational sustainability leads integrate sustainability into daily operations
and support customer sustainability objectives.
SUSTAINABILITY EMPLOYEE RESOURCE GROUPS
Employee Resource Groups (ERGs) promote awareness and engagement
with sustainability priorities across the organization.
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