1.7Materiality-based Value Creation
Conducting sustainable business for SBM Offshore is dependent on continued and effective communication with stakeholders and the recognition of the impact of operations on the environment. The Company recognizes this and acknowledges stakeholder engagement’s importance in understanding risk and opportunities, as well as for setting strategic objectives within the value chain.
Recently, SBM Offshore identified financial and non-financial topics that have a material impact on the Company’s ability to create value. The results of this analysis are presented in the Materiality Matrix below, which is a visual representation of SBM Offshore’s impact on these topics and related stakeholders’ decisions.
Material Topics for 2018
The matrix maps SBM Offshore’s business impact and the impacts on stakeholders for various important topics. From this matrix, SBM Offshore’s Management has established a group of the most material topics for the Company. Furthermore, the matrix visualizes the alignment of these topics with the Company’s strategy and the relation with SBM Offshore’s core values: Integrity, Care, Entrepeneurship and Ownership.
Engaging with stakeholders also enables sustainable, long-term value creation which is an intrinsic aspect of the Company’s business model (for more on who our stakeholders are, see section 5.1.3 ). SBM Offshore’s production accounts for 1% of total world oil production (onshore and offshore), 10% of deep water oil production (>150m water depth) and 15% of ultra-deep water (>1,000m water depth). This puts the Company in a position of responsibility in supplying safe, sustainable and affordable energy from the oceans to the world’s population on both a short and long-term basis.
Hence, engaging with stakeholders to better meet their expectations and create long-term value is a key part of SBM Offshore’s daily operations and overall strategy. The value creation model hereafter represents the Company’s business model and stakeholder expectations as well as the changing environment within which the Company operates. In addition, it visualises the interconnectivity of SBM Offshore’s operations and demonstrates how the outputs are the results of daily activities.
The results shown in the model are the direct result of SBM Offshore’s resources and expertise to create value for the stakeholders. They are categorized into six different forms of capitals, as the essential inputs to the Company. Some of these results are linked to the United Nations Sustainable Development Goals (SDGs) that SBM Offshore is contributing to. For more details see section 2.3.