2.2Sustainable Development and Local Impact

Management Approach

Environmental, social and governance-related topics are foundational to SBM Offshore's strategy and consequently drive its strategy development and performance management process. It is the role of every SBMer to contribute positively to this. SBM Offshore is further embedding sustainability in the business by, for example, increasing low-carbon products and promoting local voluntary projects for positive impact.

SBM Offshore leverages the UN SDG framework to steer on positive impact. It has identified nine SDGs to which it can contribute with the most impact, and which are most material to its business. SBM Offshore strives to embed the selected SDG topics within the organization and targets are built with inputs and commitments from different business entities, such as business development, HSSE and operations, as part of business plans and budgets.

A sustainability team is providing guidance to drive positive local impacts aligned with the SDG framework and impacts mentioned in chapter 2. The team reports into the portfolio of the Chief Operating Officer (COO). SBM Offshore has sustainability ambassadors in various countries working with local colleagues and communities.

SBM Offshore is committed to alignment with the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises (MNE). As part of projects, SBM Offshore applies guidance by the World Bank and works within Environmental Impact Assessments and Stakeholder Engagement outcomes conducted by its clients.

2022 Performance

SBM Offshore has built on previous years’ efforts and commitments to increase its positive impact on selected SDG targets. This performance program is linked to SBM Offshore’s Short-Term Incentive (STI) scheme. An overview of SBM Offshore's contribution towards the SDGs is provided in the SDG table. Overall SBM Offshore is pleased with (over)performance on most of the SDG-linked targets set in 2022. Although SBM Offshore aims for completion of all targets, challenges are part of the journey for improvement and sustainability. SBM Offshore had set the target for 100% completed office sustainability actions, as part of SDG 7. This target has not been met this year due to challenges with cost approval processes in Brazil, local waste segregation infrastructure and accomplishing the action of segregating waste in Guyana. SBM Offshore in Guyana is currently looking for alternative ways to successfully segregate and recycle waste. Nevertheless, SBM Offshore was able to contribute to positive impact through the provision of renewable power in the Guyana office, with the installation of a 175 kWp solar system. Whilst SBM Offshore takes action on life below water, the performance on the target related to SDG 14 was inhibited by unforeseen complexity in contracting agreements to share ocean data. SBM Offshore remains committed to this and equivalent projects, as demonstrated in the target for 2023.

Further progress has been made in 2022 on target setting and actions taken for SDG 10 and 12, which were added to the program at the end of 2021. SBM Offshore has underlined the importance of diversity and inclusion and achieved 0.96 gender pay gap. As well as the recycling of MOPU Deep Panuke (2.1.4.4), SBM Offshore has undertaken initiatives to analyze the level of circularity in FPSOs, leading to further insights into and target setting for operational waste.

SBM Offshore has set intermediate targets to support net-zero by 2050 (SDG 13, 1.4.3) for its FPSO business and has also taken action on biodiversity. The importance of biodiversity to ecosystems and economies has prompted SBM Offshore to develop initiatives such as the installation of reef balls as part of a decommissioning project in Nova Scotia, Canada, and investment in a pilot to provide ocean data to marine researchers in Brazil.

SBM Offshore 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 and improving ratings in sustainability benchmarks, as per the following table.

Ranking of SBM Offshore in Sustainability Benchmarks

Local impact

SBM Offshore has sustainability ambassadors in Brazil, Guyana, Malaysia, China, India, the Netherlands, Monaco, USA, Switzerland and Angola. They engage with local employees on the topic, organize SDG-related activities for positive impact and are part of SBM Offshore's effort to embed sustainability in the business with local initiatives. A few examples of the actions taken by sustainability ambassadors are highlighted below.

In Guyana SBM Offshore further continued its technical, financial and advisory support, in light of SDG 3 'Good Health and Well-Being', with Plympton Farms. This agricultural project is turning barren earth into lucrative farmland, creating stable jobs for residents in remote areas of the country. SBM Offshore aided in constructing greenhouse structures. The project is further set to help reduce SBM Offshore's environmental footprint associated with food production and imports by providing FPSOs with quality, fresh locally grown food rather than imported food. The farm supplied approximately 1,188 kg of fresh farm produce in 2022 to FPSOs Liza Unity and Liza Destiny.

To further support local economic growth, SDG 8 'Decent Work and Economic Growth' and act on the need for sustainable income generation and a diversification of Guyana's economy, SBM Offshore provided support to Hubu Aquafarm to boost production of shrimp and prawns.

In Brazil, SBM Offshore volunteers give educational and psychological assistance at a children's shelter in Rio de Janeiro, as part of the Semente project, which aims to prepare children not only for their academic life, but also for their life in society when they leave the institution. Furthermore, for SDG 4 'Quality Education', SBM Offshore volunteers mentored students from public schools in the State of Rio de Janeiro via the Entrepreneurial Trail program.

The Monaco office took part again in the annual Monaco Energy Boat Challenge, competing in the Energy Class. SBM Offshore runs a green hydrogen-powered boat and continues to develop this and aims to contribute, with its research, to the development of clean energy, as highlighted in SDG 7 'Affordable and Clean Energy'.

For SDG 12 'Responsible Production and Consumption', SBM Offshore has spent time, in partnership with Earthwake, to innovate and develop a machine which uses plastic waste to generate fuel. Subsequently, the produced fuels are donated to local communities to provide electricity.

To contribute to SDG 10 ‘Reduced Inequalities’, SBM Offshore has partnered with Refugee Talent Hub to provide opportunities to refugees in the Netherlands, who join SBM Offshore in various roles and disciplines.

Various initiatives were taken on SDGs 13 'Climate Action' and 14 'Life Below Water'. SBM Offshore Malaysia has partnered with Reef Check Malaysia and researchers to introduce new coral reef rehabilitation sites around Tioman Island on the east coast of Malaysia. SBM Offshore volunteers and divers collected damaged coral fragments, which were replanted under water and are being monitored. SBM Offshore has carried out habitat assessments for 3 FPSO projects located in the same area. SBM Offshore is also supporting a mangrove restoration project in Guyana, in partnership with NAREI, to increase coastal protection, enhance ecosystem resilience and foster biodiversity.

Worldwide more than 30 charitable donations were made, across the various locations where SBM Offshore is active. These include contributions to local education, literacy projects, sustainable fishing and an ocean protection expedition.

Future

SBM Offshore has formulated SDG-linked targets for 2023 and will continue to structure SDG-projects. SBM Offshore will further focus and act on biodiversity moving forward in 2023. Generally, as part of an iterative and reflective process, SBM Offshore continues to assess SDGs and its (potential) impacts on the environment, economy and society.