3.2.1Climate change impact, risk and opportunity

ESRS 2 SBM-3; IRO-1, and ESRS E1

OUR APPROACH

SBM Offshore identifies and assesses climate-related risks and opportunities within its Enterprise Risk Management (ERM) framework, aligning with SBM Offshore’s strategy through a structured risk breakdown approach. When relevant, these risks are integrated into detailed reviews for projects and FPSO fleet operations across SBM Offshore’s portfolio. The Risk and Control team facilitates this process and reports findings to the Risk Assurance Committee (RAC) for consolidation and discussion of risk profile evolution and mitigation actions.

The Management Board and Supervisory Board oversee climate-related matters through the quarterly risk reports, aligning with SBM Offshore’s Risk Appetite Statements in sections 1.4.1 and 2.1.

Since 2019, SBM Offshore has performed the climate risk assessment with business, risk management and sustainability experts to identify climate risks for its business, segmenting between operations, offices and yards, following the TCFD frameworks. In the years following, SBM Offshore expanded its financial impact analysis and disclosures, which have been updated during 2023. During 2024, SBM Offshore continued to use the TCFD framework and adopted further physical climate-related hazards from ESRS 2 IRO-1 and ESRS E1-9.

Building on insights from the previous year’s assessment, SBM Offshore enhanced its climate scenario evaluation in 2025 to better understand the potential impacts of climate change on its operations and strategy. This refinement included additional parameters and the use of weather station data collected directly from FPSO assets, to verify assumptions and improve data accuracy.

The assessment was carried out through a series of cross-functional, scenario-based workshops, bringing together expertise from across the organization. These workshops focused on identifying, scoring and prioritizing climate-related risks and opportunities for SBM Offshore’s activities in yards (upstream value chain), offices (own operations and shorebases), and offshore assets (own operations). The assessment also covered SBM Offshore’s supply chain, focusing on key upstream suppliers (yards), as disruptions in these areas could pose the most significant operational risks. A full list of these assets and their locations can be found in section 1.2.2. Each identified item was evaluated using the Group Risk Matrix, assigned to an owner with defined follow-up actions and timelines, and recorded in the Risk Management Platform, supporting structured monitoring and reporting.

In line with previous disclosures, the 2025 assessment did not reveal any substantive financial effects at the consolidated level, based on the evaluated scenarios. Overall, SBM Offshore’s business model remains resilient under the tested physical and transition pathways. While the financial impact of specific physical and transition risks has not yet been quantified, this is an area of ongoing development that will continue to evolve at SBM Offshore, in accordance with the ESRS E1-9 requirements. For further details on the financial analysis related to climate impact, please refer to the Financial Statements, section 4.3.27.

Scenario Planning

For the Climate Risk Assessment, SBM Offshore considers three periods, up to 2030, 2040 and 2050. These periods reflect the lifespan of SBM Offshore’s assets and operational sites and align with the scenario analysis requirements under ESRS E1.

To comprehensively investigate potential climate-related risks and opportunities, SBM Offshore evaluates two distinct climate scenarios: one representing a high GHG emissions pathway to analyze physical risks, and another representing a low GHG emissions pathway to assess transition risks and opportunities. These analyses are crucial for understanding how different climate conditions could materially impact the business over time.

In 2025, the following emissions scenarios were used, based on the latest global climate model data (CMIP6) that inform the Intergovernmental Panel on Climate Change’s Sixth Assessment Reports (IPCC AR6):

• Physical Risk Projection: application of the SSP5‑8.5 scenario¹, which assumes a fossil-intensive development path resulting in high GHG emissions and serves as a very high‑emissions stress test applied across 2030, 2040 and 2050. This scenario helps to assess the severe physical hazards associated with the most challenging future climate conditions.
• Transition Risks and Opportunities: application of the SSP1‑2.6 scenario¹, which emphasizes clean energy technologies and the preservation of the natural environment, resulting in a lower-emissions pathway, complemented by the IEA Net-Zero Emissions (NZE) by 2050 scenario, which serves as a benchmark for the energy sector aligned with a 1.5°C global temperature increase. Although this pathway minimizes physical risks, it necessitates rapid and stringent decarbonization measures, leading to substantial transition risk exposure for SBM Offshore. At the same time, it also presents strategic opportunities for innovation, market positioning and long-term resilience.

Physical climate Risks

The physical climate risk assessment follows ESRS E1-9 guidelines and covers climate hazards across both onshore and offshore assets. The 2025 assessment has been enhanced by incorporating additional parameters previously excluded due to limited data, such as wind direction, wave height and currents. These hazards were integrated through the analysis of metocean data collected from FPSO assets and compared against design parameters. This inclusion not only strengthens the assessment but also offers a more comprehensive perspective on offshore asset integrity and operational continuity, reflecting SBM Offshore’s commitment to continually improving climate resilience.

In 2025, SBM Offshore evaluated 16 of the 28 physical climate hazards identified under ESRS E1. The remaining 12 hazards – including permafrost thawing, coastal erosion, soil degradation, soil erosion, solifluction, tornado, drought, glacial lake outburst, avalanche, landslide and subsidence – were considered immaterial or not relevant to SBM Offshore’s areas of operation. The assessment applied IPCC CMIP6 SSP5-8.5 scenario modelling, using metocean data collected from FPSO assets and comparing the results against design parameters. For hazards where data was not available through the CMIP6 database – specifically water stress, river floods and coastal floods – SBM Offshore used alternative data sources, such as the World Resources Institute’s Aqueduct Water Risk Atlas. All assessments were based on asset-level geospatial coordinates to obtain location-specific insights.

Physical Risks Hazards

Offshore assets

Two climate hazards were identified as posing risks to offshore assets: heat stress and cyclones.

The remote possibility of cyclones remains a concern for offshore assets in regions prone to extreme weather events. Projections indicate that future climate conditions within SBM Offshore’s time horizons are expected to marginally affect cyclone intensity. Consequently, offshore assets are not anticipated to be significantly impacted by these events, as the likelihood is expected to remain unlikely. However, the potential for cyclone-related damage still exists.

Heat stress is expected to be the most significant hazard for offshore assets under the applied climate scenario. It may affect personnel and limit outdoor work when air conditioning is not feasible. This risk is particularly pronounced for offshore assets in Angola and the United States, considering the projected heat index² under more extreme climate conditions. Nonetheless, no major impacts are anticipated, as improvements in protective equipment, implemented mitigation actions, and established scheduling practices are already in place to effectively manage heat-related risks.

Ocean acidification and saline intrusion are not currently expected to pose significant risks to offshore units, as existing engineering and design standards already incorporate the latest metocean modelling and provide sufficient resilience to these evolving environmental conditions.

Onshore assets

Six climate hazards were identified as posing risks to onshore assets: heat stress, changing air temperature, changing wind patterns, water stress, changing rainfall patterns, and flooding (river and coastal).

Heat stress is primarily expected to impact construction yards, as work in offices, shorebases and R&D laboratories occurs in controlled environments with reliable air conditioning. Among the yards utilized by SBM Offshore, those located in China and Singapore already experience some degree of exposure. Heat stress is monitored and recorded seasonally at these yards to inform work scheduling and safety planning.

Water stress was assessed using the World Resources Institute’s Aqueduct Water Risk Atlas. While most onshore assets currently have reliable access to water, locations in Angola, China, India and Mexico show higher exposure. Mitigation measures are already in place, and continued monitoring and proactive adaptation planning remain essential. The degree to which local infrastructure may be affected under future conditions is not yet fully understood.

Both river and coastal flooding were assessed for onshore assets. As with water stress, it remains uncertain as to what extent available tools account for local flood defenses. Some onshore assets in China, Brazil, Angola and Guyana may be exposed to flooding risks, which could cause direct damage to assets or people, or result in operational disruptions such as shutdowns or construction delays. Flooding occurs annually in parts of China, but current yard locations have not been affected. Monitoring of off-site surroundings and logistics routes continues to be an important part of local risk management.

None of SBM Offshore’s onshore asset locations are situated in areas prone to landslides, which is why this hazard was not included in the formal assessment. However, in Brazil (Angra dos Reis), the main road connecting Rio de Janeiro to the yards passes through landslide-prone areas. This risk is already addressed through route monitoring and contingency planning. Occasional roadblocks have been experienced, reinforcing the need for ongoing vigilance.

Current assessments indicate that no material impacts are expected across the identified hazards under present conditions. Nevertheless, SBM Offshore continues to monitor climate-related risks and integrate mitigation measures into operational planning. Proactive adaptation strategies, including contingency planning and infrastructure monitoring, remain critical to maintaining resilience.

Based on available results, water stress emerges as the most widespread hazard affecting the majority of onshore assets, except those located in the Netherlands, Switzerland, Portugal, Brazil, Equatorial Guinea, the United States, and Singapore. While onshore assets generally have reliable water access, additional water sources or contingency measures may need to be identified if risk levels increase in line with projected scenarios.

Physical Risks (Climate scenario SSP5-8.5)

Transition climate Risks and opportunities

According to the United Nations’ projections in 2024, the global population is expected to continue growing over the next 50 to 60 years, reaching a peak of approximately 10.3 billion people in the mid-2080s, an increase from 8.2 billion in 2024. Global energy demand is set to grow in the coming decades. While the share of renewable energy in the energy mix is increasing and governments are raising their decarbonization targets, oil and natural gas will remain crucial to the primary energy mix. According to the World Energy Outlook 2025, demand for new oil and natural gas projects is projected to grow until the end of the decade, after which it is expected to gradually decline until 2050.

To assess transition risks and opportunities, SBM Offshore applied the SSP1-2.6 scenario, which outlines a sustainability-focused pathway to limit global warming to well below 2°C. This scenario assumes strong international cooperation, aggressive climate policies, and increased adoption rates for renewable energy. The transition is driven by five key factors: policy and legal changes, market dynamics, technological advancements, reputation, and stakeholder expectations.

Under this scenario, demand for traditional O&G projects may decline at a higher rate until 2050. There may also be increased exposure to carbon pricing and greater reputational pressure. This scenario also presents significant opportunities, including the potential to enhance lower-carbon solutions through SBM Offshore’s transition plan, accelerate portfolio diversification toward renewable energy integration and hybrid energy systems, and strengthen strategic partnerships with clients focused on decarbonization.

Financing Landscape Shifts

Constraints in the financing landscape exist, representing an increased transition risk, particularly under a well-below 2°C scenario. As financial institutions and investors increasingly favor lower-carbon portfolios, access to capital for O&G projects may become more limited. To mitigate this risk, SBM Offshore focuses on financial performance, operational excellence, and transparent ESG disclosures to build investor confidence. At the same time, SBM Offshore is expanding on its offering of decarbonization solutions for FPSOs – such as carbon capture, electrification, and energy efficiency – while preserving flexibility for future diversification. This approach enables resilience in the core O&G business while aligning with evolving market expectations.

Delays in New Energies Product Development

Inflationary pressures and changes in the subsidy landscape have affected certain industry players, resulting in delays for the development of new energy products. This situation highlights the risks of financial setbacks and a slowdown in new energy investments offshore. In response, SBM Offshore has implemented a selective strategy for its blue economy portfolio, focusing on projects that are both viable and capable of achieving the scale needed to make cleaner energy more affordable.

SBM Offshore leverages its capabilities to capture emerging market opportunities. Through collaboration and partnerships with organizations aligned on risk, reward and impact, SBM Offshore contributes to collective efforts to build a resilient and sustainable ocean economy.

Further data on transition climate risk analysis is provided in the table below. SBM Offshore’s scenario analysis continues as an iterative process to critically assess and prepare for evolving climate and market conditions, serving as a tool to explore potential transition pathways rather than predict specific outcomes.

Transition Opportunities

The ongoing energy transition presents not only challenges but also significant opportunities for SBM Offshore to apply its innovative ocean infrastructure, pioneering spirit, and deepwater expertise in the development of new energies solutions. As the global energy system evolves, these solutions provide pathways for diversification and long-term growth. SBM Offshore’s exploration of the blue economy focuses on scalable, technically and economically viable projects that can accelerate the affordability of more sustainable floating solutions and enhance the resilience of future energy systems. Further information is presented in section 1.2.

Transition Risks (Climate scenario SSP1-2.6)

Transition Opportunities (Climate scenario SSP1-2.6)