1.1.3Overall View

SBM Offshore believes the oceans will provide the world with safe, sustainable and affordable energy for generations to come. We share our experience to make it happen. The challenge in producing safe, sustainable and affordable energy is well recognized, particularly by SBM Offshore’s stakeholders, with whom SBM Offshore works on areas important to them, called material topics, to address that challenge. These topics are the basis for SBM Offshore’s objectives and strategy, and are the criteria against which it measures its performance. The table below shows the connection between these elements and are explained in the rest of the Annual Report.

CONNECTIVITY TABLE

SBM Offshore believes the oceans will provide the world with safe, sustainable and affordable energy for generations to come.
We share our experience to make it happen. – Energy. Committed.

Business Context (section 1.2)

Strategy & Value Creation (section 1.3)

Performance Review & Impact (sections 2.1 & 2.2)

Material Topics

Key Objectives

Key Strategy Element

Key Outputs

Key Outcomes

SDGs

1. Ethics & Compliance

  • Zero tolerance for bribery, corruption,
    fraud or any other form of misconduct
  • 2021: >92% completion of Compulsory
    Compliance Tasks

Optimize: Target Excellence in business ownership & control of compliance risks Transform: Digitilization to manage compliance risks
  • 96% Completion
    of Compulsory Compliance Tasks (onshore)
  • 0 confirmed cases of corruption
  • 1 fine to close legacy issue in Switzerland
  • No negative impact to SBM Offshore’s licence to operate
  • Credibility & reputation for trustworthiness
  • Express recognition remedial measures by Swiss authorities

8

2. Employee Health Safety & Security

  • No Harm, No Defects,
    No Leaks
  • 2021: Total Recordable Injury Frequency Rate (TRIFR) <0.18

Optimize: HSSE and Process Safety Management approach, human rights governance; Life365; adopting industry best practices and guidance
  • TRIFR: 0.06
  • A safe working environment
  • Ability to manage during the pandemic

3, 8

3. Human Rights

  • Fully embed human rights and social performance within SBM Offshore
    to achieve no harm
  • 2021: 90% vendor screening on human rights for high risk vendors

Optimize: executing due diligence cycle and taking action through human rights program governance
  • 97% vendor screening on human rights for high risk vendors
  • 94% e-Learning completion
  • Respecting human rights

8

4. Operational Excellence & Quality

  • No Harm, No Defects,
    No Leaks
  • 2021: Uptime at or
    above 99%
  • Project schedule, cost, quality
  • Certifications

Optimize: Target Excellence program, Right365 and Process Safety Management approach
Transform: Digitalization, Fast4Ward®

  • 99.1% Uptime
  • Project delivery
  • Renewed ISO certification
  • 0 significant operational fines
  • Client value
  • Compliance with regulations

8

5. Retaining & Developing Employees

  • Hire, retain & develop a diverse workforce with a wide range of competencies
  • 2021: People Development Cycle

Optimize: HR learning and development
  • 99% completion performance appraisals
  • 14% employee turnover rate
  • A diverse, learning & developing workforce able to deliver energy supply related projects and activities

4, 8

6. Economic Performance

  • Ambition: Grow free cash flow
  • 2021: Directional EBITDA around US$900 million

Optimize: Backlog & cash preservation, global response
Transform: Fast4Ward®, Digitalization, emissionZERO®
Innovate: New Energies projects

  • Underlying EBITDA US$931 million
  • Return to shareholders US$343 million
  • Resilient returns in volatile times
  • Long-term viability
  • Investment capability for innovation

8, 9

7. Emissions

  • emissionZERO®
  • 2021: 1.6 MMSCF/D Average flaring
  • 2021: Launch of 4 Low carbon Modules in F4W catalogue
  • 2021: 20% Reduction Airtravel Related Emissions versus 2019
  • 2021: >50% better than water discharge benchmark

Optimize: energy efficiency
Transform: emissionZERO®
Innovate: New Energies & Services development
  • 1.66 MMSCF/D Average flaring
  • Launch of 6 Low Carbon Modules
  • 61% Reduction Airtravel Related Emissions versus 2019
  • 66% better than water discharge benchmark
  • Emission reduction trend
  • Industry benchmark performance
  • New business
  • Lower climate change risk

7, 9, 13, 14

8. Digitalization

  • Leveraging data & digital technology to increase lifecycle value
  • 2021: Digitalization Milestones – e.g. ERP, project management, operations tooling

Transform: Digital Transformation program

  • Go-live ERP pilot
  • Work Fronts Management tooling
  • Launch of emissions e-dashboard
  • 18% increase of data signals
  • Business Continuity
  • Improved efficiencies
  • New business opportunities

8, 9

9. Innovation

  • Develop and introduce new technologies in line with net-zero & energy transition ambitions of SBM Offshore
  • 2021: 44 Technology Readiness Level (TRL) qualifications

Innovate: technology development, open innovation
  • 35 TRL qualifications
  • 11 innovations reached TRL 4
  • Contribute to the energy transition
  • Long-term sustainability

7, 9, 13, 14

10. Energy Transition

  • >2GW FOW Installed Capacity by 2030
  • 2021: 50% Non-carbon R&D

Transform: emissionZERO®
Innovate: New Energies & Services development
  • FOW project progress
  • FOW Joint Venture established
  • 60% Non-carbon R&D
  • Decline of future carbon footprint
  • New business
  • Address climate change

7, 9, 13

11. Market Positioning

  • 2+ FPSOs per year average between 2019-2030
  • 2021: Sustainability performance

Optimize: Target excellence, Business continuity
Transform: Fast4Ward®, Digitalization, emissionZERO®
Innovate: New Energies & Services development
  • 6 FPSO Projects under construction
  • 15 assets in the fleet
  • US$29.5 billion directional proforma backlog
  • 95th percentile S&P Global ESG rating
  • Industry leadership, being a reference for stakeholders with global & local impact
  • SDG related performance

3, 4, 7, 8, 9, 13, 14

Overall Impact

The continuing pandemic turned 2021 into a challenging year. Executing large scale projects and managing a client fleet required the stamina of SBM Offshore’s employees and stakeholders across the world. SBM Offshore has been managing stakeholder interests and subsequent dilemmas such as environmental footprint, risk of injuries and trade-offs with shorter schedules and lower costs, while keeping and improving on quality levels. A key challenge and an opportunity for SBM Offshore is to make a real and meaningful contribution to the energy transition. SBM Offshore is aware of the time pressure building for the world to achieve a responsible transition in which energy stays affordable to those in need, while mitigating the climate change impact of greenhouse gas emissions from traditional forms of energy. SBM Offshore is committed to this goal, through significantly reducing emissions in client operations alongside developing decarbonized solutions, including cleaner forms of energy. SBM Offshore’s values are key enablers in addressing such dilemmas and increasing SBM Offshore’s contribution to Sustainable Development Goals.

SBM Offshore has been able to balance ’business as usual’with a global response to COVID-19 and its economic impact, at the same time making progress on safe, sustainable and affordable energy for generations to come.

SBM Offshore takes pride in being able to leverage SBM Offshore’s people’s capabilities to deal with complexity, develop technologies for the energy transition, deliver projects on time and within budget and operate assets safely and sustainably. In other words: sharing our experience to make it happen.