4.8.4Taskforce for Climate-related Financial Disclosure (TCFD)


Mitigating the impacts of climate change while meeting the needs of the future by facilitating the energy transition are key for SBM Offshore. The Climate Change Risk & Opportunity assessment is embedded in the portfolios of the CEO and CGCO. The Global Sustainability Manager (CEO) prepares Climate Change scenarios whereas the Group Risk Manager (CGCO) facilitates expert sessions to identify Risks & Opportunities for each scenario. This has been done with risk management professionals and the Company’s Group Strategy team first, followed by validation with business owners and the Risk Assurance Committee.

Frameworks from the TCFD have been used to structure the assessment, more specifically the TCFD’s Technical Supplement. The Company has applied the following steps:

  1. Ensuring Governance to integrate Climate Change Scenario analysis into Strategic planning and Enterprise Risk Management (ERM)
  2. Assessment of the Materiality of Climate Change related risks & opportunities with business- and functional experts
  3. Identification and definition of range of Climate Change scenarios
  4. Evaluation of business impact per scenario together with business owners
  5. Identification of potential responses
  6. Documentation in a Climate Action report and embedding in the Company’s ERM system as well as Disclosure as per this Annual Report and internal presentations

The outcome is used to future proof the current strategy against Physical & Transitional Climate Change related Risks and Opportunities. Identified risks & opportunities are embedded in the Company’s Risk Management approach explained in section 3.6 and the Company’s Strategic Planning processes.

Risk Management

Climate change risks & opportunities are inherently identified and assessed against our strategy in our risk breakdown structure as deployed throughout the Company. When relevant, these risks are included in the detailed risk review and analysis is done for all tenders, projects and FPSO (asset) fleet operations which are part of the Company’s portfolio. The Group Risk Manager facilitates the process of bottom-up Climate Change risk reporting into the Risk Assurance Committee (RAC) for consolidation purposes. The outcome of the review in the RAC results in heat-maps of risks which are presented in in a quarterly Risk report. This covers proposal, projects and fleet individual risks, as well as Group Functions and Execution Centers, and includes actions and managing measures in place to mitigate risk. The report provides an overview to the Management Board and Supervisory Board with the measurement SBM Offshore’s Risk Appetite Statements and the latest Risk profile.


SBM Offshore defined two climate change scenarios to future proof current strategy and take subsequent action based on. IEA and IPCC data :

  1. A Steady Climate Change Scenario based on IEA’s Stated Policy Scenario (STEPS) and IPCC’s Representative Concentration Pathway (RCP) 4.5 and 6.0. This scenario reflects the impact of announced country policies across the globe. This trajectory is said to have positive impact on climate change, however to fall short of meeting Paris Agreement goals.
  2. A Bold Climate Action Scenario based on IEA’s Sustainable Development Scenario (SDS) and IPCC’s RCP 1.9 and 2.6. This scenario reflects a trajectory consistent with countries’ shared sustainable energy goals. The trajectory provides for strong commitment towards targets as per Paris Agreement.