This fifth annual report demonstrates McDermott's sustainability strategy and how sustainability priorities - from decarbonization to circularity, and human rights to social investment through capacity building - are embedded across our operations and project delivery. From early front-end engineering design to fabrication, construction, installation and commissioning (EPCIC), McDermott's integrated delivery model, assets and high-performing workforce deliver sustainability successes in our operations and for customers, advancing goals across traditional and emerging energy sectors.
"Our 2024 report presents our measurable progress in areas of importance to our strategy and our stakeholders," said Michael McKelvy, McDermott's President and CEO. "We strengthened energy efficiency at our facilities, partnered to deliver groundbreaking lower-carbon projects and advanced leading workforce and community initiatives - while maintaining an industry-leading safety record. This report reflects our partnership with customers and the scale of what we can achieve together."
2024 performance highlights include:
- Industry-Leading Safety: Achieved a Total Recordable Incident Rate (TRIR) of 0.07 and a Lost Time Incident Rate (LTIR) of 0.01, among the best in the industry.
- Renewable Energy: Increased renewable energy sourcing to 80% of grid electricity demand across operations.
- Carbon Reduction and Energy Efficiency: Achieved a 35% reduction in carbon intensity and ISO 50001 energy management certification at four major fabrication yards, reflecting long-term improvements in energy efficiency.
- Energy Transition: Progressed delivery of the world's first large-scale green steel project and began fabrication of a second high-voltage direct current (HVDC) offshore converter station to support Europe's energy transition objectives.
- People-First Progress: Doubled participation in internal training and talent development programs; recognized by the Ugandan government for leading in-country workforce and capacity development programs for the second year.
"Safety and sustainability are core values embedded in our project execution, risk management, business strategy and customer priorities," said Rachel Clingman, McDermott's Executive Vice President, Sustainability and Governance and Chief Legal Officer. "Our internal team carefully monitors internal opportunities and performance, customer priorities and goals, as well as emerging regulation and opportunities to ensure excellence in EPCIC project delivery."
The report was prepared in accordance with international frameworks and best practices, including the Global Reporting Initiative Standards, Sustainability Accounting Standards Board, United Nations Sustainable Development Goals, International Petroleum Industry Environmental Conservation Association, International Association of Oil and Gas Producers, Taskforce for Climate-Related Financial Disclosures, American Petroleum Institute, European Sustainability Reporting Standards, and International Financing Reporting Standards. It is available to read and download on the company's website: https://www.mcdermott.com/sustainability.
About McDermott
McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Our customers trust our technology-driven approach engineered to responsibly harness and transform global energy resources into the products the world needs. From concept to commissioning, McDermott's innovative expertise and capabilities advance the next generation of global energy infrastructure empowering a brighter, more sustainable future for us all. Operating in over 54 countries, McDermott's locally-focused and globally-integrated resources include more than 30,000 employees, a diversified fleet of specialty marine construction vessels and fabrication facilities around the world. To learn more, visit www.mcdermott.com.
Forward-Looking Statements
McDermott cautions that statements in this communication which are forward-looking, and provide other than historical information, involve risks, contingencies, and uncertainties that may impact McDermott's actual results of operations. Although we believe that the expectations reflected in those forward-looking statements are reasonable, we can give no assurance that those expectations will prove to have been correct. Those statements are made by using various underlying assumptions and are subject to numerous risks, contingencies, and uncertainties, including, among others: adverse changes in the markets in which we operate or credit or capital markets; our inability to successfully execute on contracts in backlog; changes in project design or schedules; the availability of qualified personnel; changes in the terms, scope or timing of contracts, contract cancellations, change orders, and other modifications and actions by our customers and other business counterparties; changes in industry norms; actions by lenders and other creditors of McDermott and adverse outcomes in legal or other dispute resolution proceedings. If one or more of these risks materialize, or if underlying assumptions prove incorrect, actual results may vary materially from those expected. This communication reflects management's views as of the date hereof. Except to the extent required by applicable law, McDermott undertakes no obligation to update or revise any forward-looking statement.
Contacts:
Global Media Relations
Reba Reid
Senior Director, Global Communications and Marketing
+1 281 588 5636
RReid@McDermott.com
