Management Approach

The topic of emissions is dealt with in various parts of the organization, as explained under the HSSE and Environmental Reporting approaches in sections 2.1.2, 5.2.1 and 5.2.2. SBM Offshore is reporting to CDP and considering IOGP statistics to ensure the right benchmarking.

SBM Offshore commits to a strategy and actions compatible with its ambition to achieve net-zero by no later than 2050, including emissions in scope 1, scope 2 and scope 3 – Downstream Leased Assets. SBM Offshore has established the following intermediate targets: by 2030, SBM Offshore targets net-zero scope 1 and 2 emissions1, and for scope 3 – Downstream Leased Assets; a 50% reduction of GHG intensity2 and zero routine flaring3. Following this, SBM Offshore set targets in 2022 to reduce flare emissions on its activities, continues to develop low- and non-carbon solutions and aims to have zero oil spills.

SBM Offshore reports on CDP and uses IOGP statistics to steer its ambitions, effectiveness of actions and performance. SBM Offshore strives to outperform industry benchmarks on the following indicators:

  • GHG emissions4, gas flare5, energy consumption6.
  • Oil in produced water7, oil spill per production8.

Emissions management and the mission to structurally bring emissions down builds on years of action. For example, gas flaring intensity in 2022 is 24% lower than in 2018, mainly due to target-setting and increased production efficiency. Through this approach, SBM Offshore is managing risks in the light of climate change and social license to operate, as mentioned in section 1.4.2.

SBM Offshore focuses on GHG emissions while also addressing other emissions − such as emissions to water and non-GHG emissions. Further information can be found in sections 2.2 and 5.3.2.

2022 performance

During 2022 a total of 6.0 million tonnes of GHG emissions are reported, 99% of this being scope 3 emissions. The total is 7% higher than in 2021, mainly driven by changes in scope 3 − Downstream Leased Assets.

Scope 1 – Direct Emissions

Scope 1 emissions comprise the gas-powered heating in offices where SBM Offshore is the sole renter of an office building. In 2022 these emissions amounted to 172 tonnes GHG CO2 equivalent. This is a decrease of 27% compared to 2021 due to better monitoring of heating systems and less heating demand during the year.

Scope 2 – Purchased Electricity

Purchased electricity in offices accounts for 2,140 tonnes of GHG CO2 equivalent, based on the average energy mix of each location, which is 1% higher than in 2021. There has been an increase of reported volumes due to increases in emissions accounting factors of some countries, furthermore there were fluctuations of emissions due to changes in business activity. Accounting for the electricity actually purchased through green contracts, the amount is 1,280 tonnes, an increase of 51% - driven by loss of a green energy certificatein one of the countries where the office location changed. SBM Offshore is taking follow-up actions.

Scope 3 – Purchased Goods and Services

Emissions resulting from goods procured on FPSO projects were 356 thousand tonnes in 2022. The emissions mainly come from steel that is processed for bulk materials and equipment. Compared with 2021, the level of associated emissions is 4% lower, explained by the fact that projects have moved from hull-related purchases to topsides related purchases, which are typically less carbon intense from a purchased goods perspective. SBM Offshore is proud to have sourced >90 tonnes of steel for one of its FPSO projects, manufactured through an electric arc furnace process driven by hydropower, reducing significantly the footprint on the purchase order.

Scope 3 – Downstream Leased Assets

SBM Offshore provides operation and maintenance services for FPSOs on behalf of clients across the globe, on a finance-lease basis. Emissions from downstream leased assets mainly relate to the required production profile of the oil field and the subsequent energy production, e.g. from gas turbines (70%). The other key contributor is flaring (30%).

Emissions from downstream leased assets account for the majority of the carbon footprint reported by SBM Offshore. Around 94% of total emissions, giving 5.6 million tonnes of GHG, were emitted by downstream leased assets. This volume is 7.7% higher compared with 2021, due to the addition of FPSO Liza Unity to the fleet. The carbon intensity of downstream leased assets is 108.8 tonnes of GHG emissions per thousand tonnes of hydrocarbon produced, which is 13% below the industry benchmark4 and 2% lower than last year.

SBM Offshore Reported Emissions 2022 − based on CO2e volumes

For 2022, SBM Offshore set a target to further optimize operational excellence on the FPSOs for which it provides operations and maintenance services. SBM Offshore targeted an absolute volume of gas flared below 1.7 million standard cubic feet per day (scft/d) as an overall FPSO fleet average during the year. This was done for a specific part of the volume to which SBM Offshore expects to have the largest form of control, despite it being a scope 3 category. SBM Offshore over-performed on this overall target, the actual being 1.42 million scft/d, which is 14% lower compared with 2021.This performance is mainly attributed to a Flash Gas Compressor replacement and an efficient start-up of a new FPSO in Guyana. Also, improvements in West-Africa and the shutdown of FPSO Cidade de Anchieta (see section 2.1.4) contributed to the performance. Overall flaring on downstream leased assets was 21% higher than the industry benchmark5, which is mainly attributed to the start-up of a new asset.

In order to address future scope 3 emissions, SBM Offshore has targets for Innovation, Technology and Infrastructure, in line with SDG 9. In 2022, SBM Offshore spent 59% of its Group Technology R&D budget on technology eligible to the EU Taxonomy, above the 50% target set. Also, SBM Offshore developed all electric-drive FPSOs, so it can offer a lower carbon footprint to clients in the future.

To further reduce emissions from the power generation aspect of downstream leased assets in operation, SBM Offshore is dependent on investments by clients and partners in co-owned entities. SBM Offshore, however, is ready to lead, co-develop and deliver on such investments. SBM Offshore has therefore set a long-term engagement target for this as part of its SDG approach described in section 2.2.

Scope 3 – Business Travel

Total air travel related emissions were 22.6K tonnes in 2022, roughly double the amount of 2021 as travel normalized after the COVID-19 pandemic. Compared with pre-pandemic levels (2019), the GHG volume related to business travel is 18% lower.

Other performance items relating to emissions:

  • SBM Offshore is proud to have an A- rating in CDP, up from a B score in 2021, meaning SBM Offshore is ‘implementing best practices’. Further explanation on climate change is given in section 1.4.3.
  • SBM Offshore’s energy intensity on downstream leased assets is 14% lower than the industry benchmark6. Energy consumption volumes can be found in section 5.3.2.
  • The quantity of oil discharged to sea per hydrocarbon production on downstream leased assets was 3.44 tonnes per million tonnes of hydrocarbon produced, 70%1 below the IOGP benchmark7 (see also section 2.2).
  • Downstream leased assets had 3 spills as per IOGP definition8. Further detail is given in section
  • SBM Offshore engaged in various projects that resulted in lower emissions. In Guyana, a local agricultural project leads to lower emissions from food logistics, and investment in a mangrove project will contribute, amongst other things, to additional sequestration of carbon. More information can be found in section 2.2.


In early 2020, SBM Offshore announced the emissionZERO® program targeting near-zero emissions. The development of an emissionZERO®-based FPSO is a key element of the program and is planned in three phases: Phase 1 consists of including existing low-carbon solution alternatives in win-phase; Phase 2 focuses on an all-electric drive FPSO to maximize energy efficiency, the feasibility of carbon capture technology integration and hybrid forms of power generation − for instance importing renewable energy from shore or floating renewable energy solutions; and Phase 3 will look at power-from-shore technologies and carbon-free fuel power generation.

SBM Offshore is actively developing solutions and working with its stakeholders to drive down emissions from downstream leased assets on a continuous basis. This is, for example, done with customers during the project lifecycle, with financers of projects and with suppliers during qualification processes.

Key achievements on the emissionZERO® FPSO have been:

  • The engagement with strategic and key client accounts and suppliers during the year.
  • The enrichment of SBM Offshore’s product catalogue with an all-electric drive FPSO.
  • The use of digital technologies (advanced analytics and predictive maintenance) to optimize energy consumption, reduce equipment trips and associated flaring.
  • The establishment of a portfolio of ideas and projects to further reduce the carbon footprint of SBM Offshore’s activities.

This builds on progress in past years, such as the low-carbon modules delivery in 2021. Further planned milestones and achievements can be read in sections 1.4.3. and 2.2. The success of the program and the impact on the above stated ambitions is highly dependent on market acceptance. SBM Offshore is therefore open for business on emissionZERO® and welcomes engagement with its value chain.


SBM Offshore remains committed to the ramp-up of emissionZERO® in the coming years and to keep setting targets to reduce emissions, as explained in section 2.2. Furthermore, SBM Offshore continues to expand the work under TCFD (see section 1.4.3).

To reduce flaring in 2023, SBM Offshore has set a target for reduction in section 2.2. This target reflects the lessons learned from the achievements and challenges in 2022. For scope 1 and 2 emissions, SBM Offshore will define an approach to climate neutral office energy, explained in section 2.2.

Furthermore, SBM Offshore remains committed to achieve better environmental performance than the 2021 IOGP industry benchmark for energy consumption and oil spills per production; and 50% better than the 2021 IOGP industry benchmark for oil produced in water.

In the coming period, SBM Offshore will keep monitoring its performance against long-term and intermediate climate targets. SBM Offshore is aware that some of its clients' current assets will potentially be in service in 2050, with associated emissions. For that purpose, engagement with clients and joint ventures – on investments and potential offsets – is performed as part of SDG commitments (section 2.2.).