1.7Materiality and Value Creation
Sustainability of business is determined by the ability to create value for stakeholders over the long-term. SBM Offshore is dependent on continued and effective communication with stakeholders and understanding their needs in order to offer them the right value. Throughout the year, the Company has engaged with stakeholders to better understand risk and opportunities, driving a strategy that delivers stakeholder value – today and in the future.
SBM Offshore has identified financial and non-financial topics that have a material impact on the Company’s ability to create value. Based on stakeholder engagement with different relevant groups of stakeholders, the Company maps topics of stakeholder interest with impact on the business and therefore the ability to sustain value over time. The results of this analysis are visualized in the Materiality Matrix hereafter.
Material Topics for 2019
From this matrix, SBM Offshore’s Management has determined the 17 most material topics for the Company. In 2019, SBM Offshore updated the previously established matrix by gathering additional feedback from two stakeholder groups: clients and vendors. Although this did not affect the list of topics considered material, the updates are reflected in the new matrix. These 17 material topics guide how the Company creates value for its stakeholders and reports on its annual performance. The Annual Report provides integral explanation on value delivered to our stakeholders. Section 5.4 provides for a mapping of material topics to the respective sections in the Annual Report.
Understanding stakeholder interests and needs enables the Company to better drive long-term stakeholder value (for more detail on our stakeholders, see section 5.1.3 Stakeholder Engagement). SBM Offshore handles 1% of total world oil production (onshore and offshore). This puts the Company in a position of responsibility. In addition, SBM Offshore is aligned with, and committed to, the energy transition. Supplying safe, sustainable and affordable energy from the oceans is the basis for long-term stakeholder value.
In order to achieve this, SBM Offshore assigns resources to activities along the project lifecycle, providing valuable outputs to its stakeholders. This is represented by the value creation model below; it connects the Company’s activities with inputs and outputs and the overall impact the Company has on the external environment.