SBM Offshore N.V.
Climate Impact & Sustainability Data (2007, 2020-21 to 2021-22, 2023)
Reporting Period: 2007
Environmental Metrics
ESG Focus Areas
- Safety
- Environmental protection
- Local content
Environmental Achievements
- High uptime of FPSO fleet (99%) resulting in substantial bonus revenues and minimal downtime.
- Minimized environmental impact through reduced seabed footprint with surface and near-surface technology.
Social Achievements
- Increased number of employees by 15% to 4,402.
- Continued expansion of permanent and contract staff.
- Increased proportion of national staff for shore base and fleet activities.
- Developed local training school in Angola with capacity of 120 trainees per year, employing around 100 local workers by year-end.
Governance Achievements
- Continued refinement of procedures to comply with best practice provisions of the Corporate Governance Code.
- Significant progress in designing and documenting risk management systems.
- Detailed review and benchmarking exercise of executive remuneration.
Climate Goals & Targets
Long-term Goals:
- Maintain growth through development of new technologies and expansion of the lease business model.
Medium-term Goals:
- Expand lease business in the Gulf of Mexico and establish a pole position in the offshore gas exploitation market.
- Develop technical solutions for the production of green energy offshore.
Short-term Goals:
- Increase project execution capacity to 3.2 million manhours by end of 2008.
Environmental Challenges
- Short bid validities, high prices, tough conditions, and long deliveries from vendors and subcontractors.
- Tight market for the supply of equipment and services.
- High input costs, particularly on the equipment supply sector.
Mitigation Strategies
- Increased focus on pricing of proposals to improve robustness of cost estimates.
- Developed long-term relationships with suppliers and subcontractors.
- Used long-term relationships, commercial agreements, escalation formulae, and options to manage pressure on margins.
- Strict adherence to Group Management System of Quality Assurance Procedures.
- Investment in a new construction yard in Angola (joint venture with Sonangol).
Supply Chain Management
Responsible Procurement
- Focus on long-term relationships with suppliers.
- Use of commercial agreements, escalation formulae, and options to manage risks.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: IFRS
Certifications: ISO 14001, ISO 9000, ISM Code 2002
Third-party Assurance: KPMG Accountants N.V.
Sustainable Products & Innovation
- MOPUstor™
- MOPU
- SeaStar® TLP
- GAP™
- Trelline™
- LNG FPSO
- FSRU
- FRU
- Gas Link™
- Offshore wind turbine installation jack-ups
- Offshore wind turbine transportation vessels
- Wave energy conversion farms
Awards & Recognition
- Spotlight on Technology Award for Cryogenic Swivel at Offshore Technology Conference 2007
Reporting Period: 2020-21 to 2021-22
Environmental Metrics
Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Eradicating hunger, poverty, and malnutrition
- Promoting healthcare, sanitation, and safe drinking water
- Promoting education and employment skills
- Promoting access to clean and affordable energy, reducing GHG emissions, and waste reduction
- Promoting gender equality and empowering women
- Ensuring environmental sustainability and conservation of natural resources
- Protection of national heritage, art, and culture
- Measures for the benefit of armed forces veterans
- Promoting rural sports
- Contribution to socio-economic development and relief funds
- Rural development projects
- Slum area development
- Disaster management
Environmental Achievements
- Not disclosed
Social Achievements
- SBM Offshore Vatsalya project supported Round Table School, providing educational materials, nutritious food, infrastructure development, and English-speaking sessions for underprivileged children.
- SBM Vatsalya project supported Navachetana, fostering intellectually disabled children.
Governance Achievements
- Not disclosed
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Not disclosed
Environmental Challenges
- Not disclosed
Mitigation Strategies
- Not disclosed
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:5.9 million tonnes CO2e
Scope 1 Emissions:489 tCO2e
Scope 2 Emissions:1,257 tCO2e
Scope 3 Emissions:5.7 million tCO2e
Renewable Energy Share:38%
Total Energy Consumption:64.3 million GJ
Carbon Intensity:98.95 tonnes of CO2 Eq/ 1,000 tonnes HC Production
ESG Focus Areas
- Ethics and Compliance
- Employee Health, Safety and Security
- Human Rights
- Operational Excellence and Quality
- Employee Wellbeing
- Economic Impact
- Emissions
- Digitalization
- Innovation
- Energy Transition
- Market Positioning
- Decommissioning
Environmental Achievements
- Achieved between 8-12 kg of CO2/barrel of oil equivalent (boe) by reducing carbon emissions in new FPSOs.
- Oil-in-water discharge 66% below IOGP average.
- 1.18 MMSCF/D average flaring (17% lower than 2022).
- 5.9 million tonnes of GHG emissions (1.7% lower than 2022).
- Successful installation of three floaters for the Provence Grand Large offshore wind project.
- 97% of Deep Panuke facility recycled, reused, or repurposed.
Social Achievements
- Total Recordable Injury Frequency Rate (TRIFR) of 0.08.
- 1,178 new hires.
- 13% employee turnover rate.
- 40 average training hours per employee.
- 81% employee engagement score and 82% job satisfaction score.
- 90.4% of suppliers screened on human rights.
- 100% of new suppliers signed supply chain charter.
- Two human rights/worker welfare initiatives per region implemented.
Governance Achievements
- 91% completion of compulsory compliance tasks (onshore).
- 0 confirmed cases of corruption.
- MSCI upgraded ESG rating from A to AA.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- Achieve 30% renewable energy by 2030
Short-term Goals:
- Reduce water consumption by 10% by 2025
- Reduce GHG intensity of scope 3 downstream leased assets by 50% by 2030
- Zero routine flaring by 2030
- 100% green energy by 2030 (scope 2)
Environmental Challenges
- Supply chain disruptions.
- Cost overruns caused by delays.
- Lingering COVID-19 impacts.
- Slow progression of the floating offshore wind market.
- Project financing challenges.
- Impacts from changes in local legislative and business environment.
- Activities of financial, strategic and/or operational partners impacting ability to build new business and execute projects.
- Potential acute or chronic exposure to hazards during product lifecycle.
- Inherent project risks.
- Benefits of transformation programs not being realized.
- Cybersecurity and data protection threats.
- Inability to attract and retain human resources.
- Supply chain constraints.
- Impacts arising from complex dismantling operations of aging assets.
- Increasing constraints from financial institutions being exposed to fossil fuel-related projects.
- Adverse changes in tax and regulatory frameworks.
- Fraud, bribery, or corruption.
Mitigation Strategies
- Launched a centralized multi-disciplinary Corporate & Business Solutions Center (CBSC).
- Rightsizing the organization.
- Continuous improvements in Turnkey.
- Focus on incidents with potential for serious injury or fatality.
- Secured US$3.2 billion for FPSOs Almirante Tamandaré and Alexandre de Gusmão.
- Robust processes for selecting appropriate parties to work with.
- Application of Process Safety Management (PSM) framework.
- Proper business-case analysis and project management capabilities.
- Change management ambassadors.
- Investment in hardware, software, monitoring, and awareness training.
- Streamlined operating model and partnerships.
- Talent development program.
- Working across functions to set a good foundation encompassing organizational structure, new ways of working and skills development.
- Gained significant experience in decommissioning assets.
- Actively monitors short and long-term liquidity position.
- Uses existing liquidity, bridge loans, long-term project financing, and equity sales.
- Compliance Program with policy, training, guidance, and risk-based oversight and control.
- Core Values, Code of Conduct, and Anti-Bribery and Corruption Policy.
Supply Chain Management
Supplier Audits: 9 ESG audits; 90.4% of new suppliers screened for Human Rights
Responsible Procurement
- Supply Chain Charter
- Human Rights Standards
- Modern Slavery Statement
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Flooding
- Drought
- Heavy rains
- Typhoons
Transition Risks
- Reduced demand for oil and gas
- Financing constraints for hydrocarbon-related projects
- More stringent environmental laws
- Introduction of carbon pricing
- Delay in product development
Opportunities
- Need for resilient ocean energy solutions
- Development of new, cleaner solutions
- Favorable business case for emissionZERO® products
Reporting Standards
Frameworks Used: GRI
Certifications: ISO 9001:2015
Third-party Assurance: Limited assurance
UN Sustainable Development Goals
- 3
- 4
- 7
- 8
- 9
- 10
- 12
- 13
- 14
Initiatives contribute to these goals through various programs and projects.
Sustainable Products & Innovation
- emissionZERO® FPSOs
- Float4Wind® floating offshore wind technology
- S3® Wave Energy Converter
Awards & Recognition
- GMSA Corporate Social Responsibility Award
- AMCHAM Catalyst of Change Award
- Guyana National Bureau of Standards Award