2.2Sustainable Development and Local Impact

Management Approach

SBM Offshore is committed to sustainability, which contributes to the Company’s Vision of providing Safe, Sustainable and Affordable Energy. SBM Offshore follows the Global Reporting Initiative (GRI) standards to report on non-financial performance, as well as on indicators for its material topics.

The Company has a Sustainability Policy which includes commitments and guiding principles for the Company and its stakeholders . SBM Offshore is committed to alignment with the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises (MNE). Furthermore, to provide context for SBM Offshore’s targets and performance, SBM Offshore leverages the UN SDG framework. The Company has identified seven SDGs that are most material to its business. In line with these SDGs, SBM Offshore has developed long-term targets and development roadmaps. These targets and roadmaps are built with inputs and commitments from different business entities as part of business plans and budgets.

Sustainability is supervised by the Chief Strategy Officer, who reports to the CEO. In addition to a sustainability department, the Company has Sustainability Ambassadors in various business and functional divisions to drive the implementation of the sustainability strategy and embed it within the ways of working.

2020 Performance

In 2020, the Company built on previous years’ efforts and committed itself to selected SDG targets. This performance program is linked to the Company’s Short-Term Incentive (STI) scheme. In 2020, SBM Offshore added company targets for SDGs 3, 9 and 13. The table below demonstrates how the Company has performed on these targets. The Company aims to achieve 100% completion of targets.

The Company takes pride in reporting on SDG-linked targets, and the results achieved during 2020 and in taking action for improvement. The fact that performance is explained in these terms, under previous sections, demonstrates the embedding of sustainability in the business. All of the ten targets set for this year have been met or exceeded, as explained below.

On SDG 3, Good Health and Wellbeing, the Company is pleased to see SBM Offshore Best Practice Health Check Programs now in place in the USA, the Netherlands, Monaco, Malaysia and Brazil. Extraordinary efforts were made to address SDG 3 as a result of the pandemic, through the Company’s Global Response and a company-wide awareness campaign focusing on mental health and wellbeing in December.

Regarding SDG 7, Affordable and Clean Energy, an explanation of the flare emissions performance is given in detail under section 2.1.6. The Company is pleased with the 36% reduction of gas flared on the SBM Offshore account and learned lessons from challenges described in section 2.1.6. On office certification, the Company now has additional insight into the Sustainability Levels of 62.5% of its project offices. This has led the Company to define actions on how the Company can make offices even more sustainable and energy efficient.

On SDG 8, Decent Work and Economic Growth, performance is explained under section 2.1.2.1 Engagement with our supply chain in yards remains a critical element to ensure respect for human rights in areas where the Company is executing business.

For SDG 9, Industry, Innovation and Infrastructure, the Company has invested, well above the target set, in non-carbon technologies to facilitate energy transition and decarbonization. All FPSO tenders from SBM Offshore include emission projections for the operation phase, which have enabled the Company to engage with clients on the asset’s carbon footprint as well as potential solutions to reduce GHG emissions in the future.

Regarding SDG 13, Climate Action, SBM Offshore achieved its target and has committed to an air-travel-related emissions reduction target for 2021 of 20%, compared with 2019.

With regard to SDG 14, Life Below Water, there were zero hydrocarbon spills exceeding one barrel in volume, while the industry benchmark¹ is 0.5. Furthermore, the amount of plastic waste generated onboard vessels reduced by approximately 18% from 174.1 tonnes in 2019, to 143.1 tonnes.

SBM Offshore has applied the lessons learned from performance on these targets for further improvement. The Company takes pride in its continuous improvement approach and will apply the knowledge gained from its performance in future target setting. This has led to positive ratings in sustainability benchmarks, as per the table below.

Ranking of SBM Offshore in Sustainability Benchmarks

LOCAL IMPACT

During the COVID-19 pandemic, SBM Offshore reached out to local communities beyond its Global Response, in light of SDG 3, Global Health and Wellbeing. In Brazil, SBM Offshore launched the ’Solidarity Quarantine’ program, with donations of basic supplies, medicine and PPE for non-government institutions located in cities where SBM Offshore is located. SBM Offshore took part in Trilha Emprededora (The Entrepreneur’s Trail), an initiative by IBP, the State Education Secretariat of Rio de Janeiro and the NGO, Junior Achievement. The program seeks to keep children in school through a series of educational programs.

In Guyana, the Company enabled the delivery of 30,000 pieces of protective equipment to front-line workers. With SBM Offshore’s presence in the country ramping up, the Company has given support to Plympton Farms , an innovative agricultural project that is turning barren earth into lucrative farmland, creating stable jobs for residents in more remote areas of the country.

SBM Offshore in China donated protective equipment, masks, thermometers, and overalls to the Disease Control Office of Changing District in Shanghai through the Shanghai Charity Foundation. The Company also donated equipment to the Assistance Ambulance Menton, France to collect and distribute donations of medical equipment among clinics, doctors and nurses in the region.

In Malaysia, SBM Offshore supported the Food Aid Project for families facing challenges in securing basic goods because of the pandemic. In addition to this, SBM Offshore sponsored a Social Textiles Project, which mobilized workers from underserved communities to produce PPE for medical facilities.

In the US, face masks were donated to two Houston Medical organizations for distribution to local hospitals. Furthermore, employees took ownership after ramp down of the Houston office by donating office equipment and supplies to a local Houston school district for community and school programs.

Future

The Company takes pride in the fact that it can follow up on commitments made in previous years. In the long-term the Company will build on existing targets and SDG roadmaps and address the following topics :

1. Define an ambition for industry leadership on Employee Health & Wellbeing (SDG 3)
2. Strong growth in number of local offshore crew in Guyana (SDG 4)
3. Propose offers to clients and joint venture partners to address emissions in the existing fleet (SDG 7)
4. Strive for green energy in global offices (SDG 7)
5. Fully embed human rights and social performance within the Company to achieve no harm (SDG 8)
6. Be one of the industry top performers in terms of both TRIFR and Process Safety Events (SDG 8)
7. Achieve a growing share of renewable energy revenues – in line with Ambition 2030 (SDG 9)
8. Offer the market floating production systems with near zero emissions as per emissionZERO^TM (SDG 9)
9. Further embed Climate Change Impact as per TCFD Framework (SDG 13)
10. Significantly Reduce Oil in Water Discharges (SDG 14)

During 2021, the Company will continue to assess SDGs, to see where additional action can be taken in the future.