2025 McDermott Sustainability Report - Report - Page 23
OUR PATH
OUR APPROACH
ENVIRONMENT
SOCIAL
GOVERNANCE
FRAMEWORK ALIGNMENT
PERFORMANCE DATA
APPENDIX
2025 SUSTAINABILITY REPORT
SUSTAINABLE SUPPLY CHAIN
Our suppliers and subcontractors are a
signi昀椀cant part of our value chain and integral
to successful project delivery. With more than
22,000 active suppliers in 2025, we engage
directly with material suppliers on sustainability
topics to assess maturity and collaborate to
strengthen capabilities in areas such as human
rights and GHG emissions, in alignment with our
Supplier Code of Business Conduct
In 2025, we initiated a screening process for our top 200 suppliers by
spend, to assess environmental and social performance. This supports
regulatory compliance, strengthens risk identi昀椀cation and monitoring,
and helps address gaps related to human rights and migrant
labor recruitment processes. Insights from this assessment inform
targeted supplier engagement initiatives designed to strengthen ESG
performance.
We also introduced a human rights risk assessment for new suppliers
and subcontractors in 2025. We considered country and category risk
to prioritize due-diligence activities and support proactive prevention
measures for human rights across the supply chain.
In 2025, we hosted our inaugural Supplier Day in Batam for over 100
suppliers and subcontractors from Southeast Asia. The event provided
a platform to communicate expectations related to sustainability,
ethics and compliance, and operational excellence and to engage
directly with key regional partners.
CASE STUDY
LUMBER REUSE PROGRAM
In 2025, we encouraged suppliers to procure more
sustainable lumber through formalizing our lumber reuse
program. Quality lumber is identi昀椀ed in laydown yards,
stored securely at a dry location, and reused as temporary
construction materials, reducing environmental impact and
cost. A sustainability clause for lumber provision was added
to purchase order terms and conditions.
DON PEREZ, SENIOR DIRECTOR, SUPPLY CHAIN
Through our ethics and compliance
questionnaires, we engage suppliers directly
and ensure consistency, transparency, and
long-term resiliency across our supply chain.”
CASE STUDY
SUPPLIER DEVELOPMENT
McDermott delivered national content supplier
development workshops in Uganda to strengthen local
supplier readiness, align with regulatory requirements, and
promote long-term participation in the supply chain.
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