McDermott Bolsters Sustainability Credentials with EY Assurance, Targets Green Infrastructure
Event summary
- McDermott published its 2025 Sustainability Report on March 31, 2026.
- The company achieved a 20% reduction in absolute Scope 1 and 2 emissions versus a 2020 baseline.
- McDermott secured voluntary limited assurance from EY for Scope 1 and Scope 2 greenhouse gas emissions.
- The company sourced 92% of its grid electricity demand from renewable sources.
- McDermott is progressing on sustainable aviation fuel facilities in North America and Europe, a green steel project, and high-voltage direct current infrastructure.
The big picture
McDermott's sustainability report underscores the growing pressure on energy infrastructure providers to demonstrate environmental responsibility. The company's focus on lower-carbon solutions and third-party assurance aligns with investor and client demand for greater transparency and accountability. This report positions McDermott to compete for increasingly stringent contracts, but also exposes it to potential reputational risk if its claims are not substantiated.
What we're watching
- Governance Dynamics
- The reliance on voluntary third-party assurance from EY signals a commitment to transparency, but the long-term cost and scalability of this practice will be a key factor in McDermott’s overall sustainability program.
- Execution Risk
- The success of McDermott’s lower-carbon infrastructure projects, particularly the green steel initiative in Europe, hinges on navigating complex regulatory approvals and securing reliable supply chains.
- Regulatory Headwinds
- Increased scrutiny of ESG reporting and potential mandatory carbon disclosure requirements could force McDermott to further refine its data collection and reporting processes, impacting operational costs.
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