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Heerema Marine Contractors

Sustainability Report 2016

a heerema company

LeidenMay 2017

2 HMC Sustainability Report 2016

Our 2016 4

Foreword 6

Who We Are & Sustainability 8

Sustainability Roadmap 13

Sustainability Themes

Achievements 14

• Interview with new VP QASHE• AsiaStaffingReport• LedLighting• Employee Survey

Projects 18

• CSR Tool• Local Employments• Back 2 Basics• DecommissioningandRemoval

Fleet 24

• Sleipnir• Hybrid Thialf

Company 30 • Projects of the Future• YoungHeerema• InterviewwiththeClingendeal institute• Simulation Centre• OurOceansChallenge

Performance Indicators 40

Achievements 2016 & Objectives 2017 42

QASHE policies & Glossary 46

Table of content

3Table of content

Our 2016

KeelLayingceremonySleipnir LEDLightinginstalledonThialf

AsiaStaffingAward OOCSecondRoundinFullSwing

Start Kaombo Offshore Installation New VP QASHE Peter van der Graaf


Our 2016

Fleet emissions in mT CO2, NOx, SOx

Fleet consumption of Fuelin mT

ParisAgreementpledgesappeartofallshortoflimitingthetemperatureincreasebelow2C,

raisingambitionto1.5Cisuncharteredterritory

Double Bubble Curtain in use duringtheVejaMateproject

Launch of a new Sustainability Roadmap, a framework for sustainability in the years to come

MainOfficeusedasoneof15showcasesinWorldGreenBuildingCouncelreport

OilandgascompanieslookingbeyondFossilFuels

BREEAM

2˚C scenario

1,5˚C scenario

40 Gt CO2 emission

30

20

10

1990 2050 2100CO2vs baseline

NOxvs baseline

SOxvs baseline

212,792

218,

571

3486

115

3326

117

2016 baseline

66,373 68,176

CO2vs baseline

NOxvs baseline

SOxvs baseline

212,792

218,

571

3486

115

3326

117

2016 baseline

66,373 68,176

5

Foreword from the BoardCreating an environment that facilitates sustainability

In recent years we have celebrated a number of successesinintroducingsustainabilityinitiativesacrossthecompany.Oneexampleisour new headquarters in Leiden, for which we receivedan‘Excellent’ratingbycertifyingagencyBREEAMNL.Oneofthekeyfeaturesofthebuildingisitssophisticatedthermalenergystoragesystem,whichreducesenergyuse.Wehavealsoincorporatedarangeofgreentechnologiesinournewsemi-submersiblecrane vessel, Sleipnir, currently under constructioninSingaporeandduetocomeintoservicein2019.Itwillbetheworld’sfirstoffshorevesselequippedwithadual-fuelsystem,enablingittorunonbothliquefiednaturalgasanddieseloil.ItwillalsobefullyfittedwithLEDlighting,achangewehavealreadymadeonourThialfvessel,savingboth

energyandcostscomparedtosodiumandhalogenbulbs.Anotherexampleisthepotentialtransformation of our vessel Thialf into a ‘Hybrid’vessel.Thisresearch,whichisstillongoing,involvesconnectinganumberofhigh-poweredbatteriestothevessel’senginesforpowermanagementpurposes.Whilesomeofthegreatestsavingswouldbemadethroughfuel reduction, this switch would also cut enginemaintenancecosts.

Ofcourse,goodideasdon’tjustappear.Theyare developed by the talented people that workacrossourcompany.Peoplewhoseinnovations enable us to introduce sustainability into our business practices, enablingustofuture-proofourwayofworking.Realizingwecanonlyachievethisin

Heerema Marine Contractors fosters a culture thatfocusesonthelongtermandmakesadifferencethroughitspeople.Asaresult,wefinditimportantthatourpeoplefeelmotivatedand empowered to look for sustainable opportunitiesforourcompany.Aspartofourambitiontobeacknowledgedasthebestoffshore construction contractor in the world in carefullyselectedsegmentsandregionsofthemarket, we also want to become a sustainability rolemodelwithinourindustry.Weseesustainability as an incremental and continuous process, and have created a roadmap to outline ourplans,aswellasourshort-andlong-termgoals.Amongotherthings,thisroadmaphelpsus share our ambitions with our employees, and outlinethestepswearetakingtoachievetheseambitions.

Saskia RijtemaCOO

Frans den HouterCFO

Harke Jan MeekCCO


incremental steps, it is essential that we create anenvironmentofcontinuousimprovement.One example of how we achieve this is our BacktoBasicsprogramme,whichfocusesonusingourresourcesmoreefficientlyandreducingourcostbasebycreatingaself-learningandself-improvingorganization.

Yetbecomingatrulysustainableorganizationinvolvesmorethansimplylookingatsustainabilitywithinthecompany.Itisourresponsibility to assess the performance of our partnerandsuppliers,ensuringthattheynotonly adhere to the required environmental standards,butalsorespectthehumanrightsofworkersandcommunities.Tohelpachieve

this, in 2016 we partnered with six other companies in the maritime sector to develop a sustainableprocurementtool.Theaimistocreate a questionnaire that is shared with suppliers,enablingusandourpartnerstoevaluatesuppliersonarangeofsustainabilitytopics,suchasworkingconditions,discrimination,waste,andemissions.Theresultscanthenbesharedamongparticipatingcompanies.

The Oil & Gas (O&G) industry is currently goingthroughwhatmanybelieveisoneofthemost transformative periods in its history, leadingtoafuturethatcouldseetheindustryredefined,withashifttowardsprojectscoveringabroaderrangeofindustries.Whilein the near future we expect the majority of our projects to still come from the O&G industry,weforeseegrowthinotherareas,suchasthewindindustry.Inrecentyearstherehas been a rapid rise in the number of offshore windfarmsbeingconstructed,particularlyintheNorthSea,andthegrowthweexpectinthis market could offer new opportunities for thecompany.Additionally,wearealsomonitoringotherpossiblefutureoffshoremarkets, such as tidal and ocean thermal energyconversion.Goingforward,wewillcontinuetoworkeveryday to improve our operations in terms of efficiency,safety,andsustainability.Wearecommittedtodevelopingmoresustainablebusinesssolutions,togetherwithourpartners,andlookforwardtoreportingontheprogresswemakeinnextyear’sreport.

“As part of our ambition to be acknowledged as the best offshore construction contractor in the world in carefully selected segments and regions of the market, we also want to become a sustainability role model within our industry.”

SUSTAINABILITY: BE A ROLE-MODEL “The drive for sustainability is an

important part of HMC’s ambition and will be a key differentiator with our

peers. Each and every employee has a role to play in this and this site is

specifically designed to allow you to be part of this journey. It is our hope that

this community will allow you to actively participate and contribute so that

together we will achieve an ever more sustainable HMC!”

David Blackmon - Sr. VP Taxation & Legal,Sponsor of the Sustainability Community

7Foreword

North Sea NorwayTI

MONTROSETIDRAUGEN TI

CULZEANTIMURCHISON

CLAIR RIDGE

North Sea UK

TI OSEBERGEKOFISK 2/4G

DOLWIN GAMMA VEJA MATE

DD

North Sea Germany

WWGoM (Mexico)

TI PRELUDEAustraliaAngola

LegendaTransport & InstallationFabrication

TIF

Pipe LayPLWind EnergyWDecommissioningD

Brazil

TITIMAFUMEIRA SUL

TI AYATSIL

TI PEREGRINO 2TI JUNIPER

FTIKAOMBO F ICHTHYS PL

MALIKAIMalaysiaTI

PL

Who We AreHeerema and Sustainability

We are marine contractors in the international offshore industry. We are involved in managing the entire offshore construction supply chain, from design through to completion. We deliver full offshore field development in some of the toughest marine environments on the planet.

What we do

Weprovideourclientswithabroadrangeofservices,including:• Engineering• Planning• Logistics• Projectmanagement

Weexecuteassignmentsaroundtheworldontimeandwithinbudget,focusedontransporting,installing,andremovingoffshorefacilities.Thisincludesfixedandfloatingstructures, subsea pipelines, and infrastructures inshallow,deep,andultra-deepwaters.

Heavy liftWe lift offshore structures in a safe, fast, and cost-effectivemanner.Byusingdual-cranevessels,weareabletoinstallintegrateddecks,andtheirsemi-submersiblehullsmeanreducedweatherdowntime.Ourmultitaskingcranevesselscaninstallfixedandfloatingfacilitiesinshallow,deep,andultra-deepwaters.

Float-overFloat-overinstallationinvolvestransportingthetopsides on a vessel in one piece, before loweringthetopsidesontothesubstructure.Float-oversareanattractivealternativeforremotegeographicalinstallations,andwhenthetopsideweightexceedstheliftingcapacityofourcranes.

DeepwaterWedesign,procure,construct,install,andtestinfrastructures for field developments in depths ofupto3,000meters.Wepushtheboundariesofwhatistechnicallypossible,developingsmart,customizedsolutions.

Decommissioning and removalWe decommission and remove offshore installationsinasafe,environmental-friendly,andcost-effectiveway.Ourservicesincludeengineering,offshorepreparation,removal,andtheonshoredisposal/recyclingofdecommissionedinstallations.


North Sea NorwayTI

MONTROSETIDRAUGEN TI

CULZEANTIMURCHISON

CLAIR RIDGE

North Sea UK

TI OSEBERGEKOFISK 2/4G

DOLWIN GAMMA VEJA MATE

DD

North Sea Germany

WWGoM (Mexico)

TI PRELUDEAustraliaAngola

LegendaTransport & InstallationFabrication

TIF

Pipe LayPLWind EnergyWDecommissioningD

Brazil

TITIMAFUMEIRA SUL

TI AYATSIL

TI PEREGRINO 2TI JUNIPER

FTIKAOMBO F ICHTHYS PL

MALIKAIMalaysiaTI

PL

Who We Are

Heerema Marine Contractors - Projects 2016

9

Weownthreeoftheworld’slargestcranevessels:thesemi-submersiblevesselThialf,andthedeep-waterconstructionvesselsBalderandHermod.Wealsoownonedeep-waterconstructionvessel:theAegir.Sheisamonohull vessel with the capability to execute complex infrastructure and pipeline projects in ultradeep-water.

TheSleipnirisournewsemi-submersiblethatiscurrentlyunderconstructionatJurongShipyard,Singapore.Thevesselwillbeoperationalasof2019.

Ourfleethaslargedeckareasanduniquecapacitiesintheareasofheavyliftingandmotionbehavior.Thishasearnedusasolidworkabilityandstation-keepingreputation.

TheBylgiaandtheKolgaareanchorhandlingtugs,equippedwitharetractablebowthrusterandhaveDP-IIcapabilities.

Weaimtoprocureonlylow-sulphurMGOwithasulphurcontentof0.1%orless.In2016theaveragesulphurcontentofallourbunkeredfuelwas0.093%.Regrettably,insomeregionsoftheworld it is not yet possible to bunker low sulphurfuelbecauseitisnotavailable.Inaddition,weaimusetobio-degradableoilwherepossible.Oneexampleisinourhydro-hammers.WealsooperateaShipEnergyEfficiencyManagementPlanforeachofourvessels, which is discussed monthly within our SiteSafetyLeadershipTeam.

Wearealsocarryingouttestsonourbargesusingnewtypesofbio-fouling,aimedatreducingourimpactontheenvironment.

Construction of SSCV Sleipnir in Singapore


Construction of the keel of the Sleipnir in Singapore

Who We Are

Thialf

BothcraneboomsarefittedwithLEDlights.FullinstallationofalloutdoorLEDlightingisexpectedendQ32017.Conversationsforelectricalstoragewithvendorsisongoing.

Balder

Thetowerhasbeenre-installedontheBalderandoutfittedwithLEDlighting.Withthenewandimprovedtower,theBalderiscurrentlyinstallingflowlinesinWestAfricaforKaombo.

Aegir

AnAdvancedGeneratorSupervisor(AGS)isbeingtestedforclassificationintheAegir.ThissystemwillreducethenumberofenginesthatruninDP2mode,significantlyreducingfuelconsumption.Inaddition,theDragocranesarebeingreplacedbyimprovedKenzcranes.

Hermod

The Hermod has been active in wind projects, and even used a double bubble curtaininVejaMeta.Asitusesanchorsratherthanthrusters,ituseslessfuelthanothersemi-submersiblevessels.

Bylgia & Kolga

TheBylgiawasrecentlyaddedtotheEnvironmentalShipIndex(ESI),aplatformfocusedonreducinggreenhousegasemissionsandimprovingenergyefficiency.TheKolgawillfollowsoon.Additionally,ourtugscannowsailonasingleengineusingtheirintermediatebearingsystem,cuttingfueluseandreducingenginewearandtear.

Construction of SSCV Sleipnir in Singapore

11

Sustainability and Heerema

Heerema and sustainability

We aim to act sustainably because we believe it istherightthingtodo.Thisinvolvesprovidingservices that create economic, environmental, andsocialvalue.Bytakingtheleadtowardsamore sustainable offshore industry and stimulatinginternalawareness,weaimtomakesustainabilityanintegralpartofhowwedobusiness,benefitingthecompany,ourclients,andsociety.

Our sustainability beliefs

Webelievewehavemadegoodprogressintroducingsustainabilitytothecompany,andsustainablethinkingisbecomingapartofourculture.Thenextstepistofocusonthebenefitsof sustainable business practices, which we believewillcreatearangeofopportunities.

Sustainability involves everyone

Becomingasustainablecompanyis,firstandforemost, about our people and culture, and secondlyaboutequipmentandlargeinvestments.Webelievethatbecomingthebest offshore construction contractor in the worldincarefullyselectedsegmentsandregionsofthemarket,whilewhilemovingtothe next level of sustainability, will take a concerted effort from everyone in the company.Weareincreasingawarenessamongourpeople,focusingonthepossibilitiesthatsustainablepracticescangenerateforourbusinessandindustry,whileensuringthatexperiencesaresharedacrossthebusiness.

Reducing our environmental footprint is an ongoing challenge

Wehaveanenvironmentalfootprint.Thereisnowayaroundthat.Oneofourcurrentchallengesistoproperlyunderstandthisfootprint,whichinvolvescollectingdatafromallareasofthecompanyonourenergyandfueluse, noise production, water use, waste amounts,traveldata,andsoon.Definingtheseparametersisanongoingprocess,andthisreportreflectsourinitialresultsandhighlightsexamplesofwhereweareimprovingourfootprint.Thiswillincreaseourenvironmentaltransparency, which we believe will be welcomedbyclientsandotherstakeholders.Fullyunderstandingtheimpactourprojectshave on the environment enables us to take steps to develop effective and practical solutions, which lead towards sustainable practices

sustainability summary

•Sustainabilityandnewtechnologiesgohandinhand,andourfocusisonintroducingnewtechnologiesthatpromote sustainability across the company

• We can be proud of the many environmental initiatives already implemented, and those currently underway across the company

•Weneedtostrengthenoursustainabilitymessageinternallyandexternally,throughincreasedcommunicationandgreaterawareness

•Sharingourcommonunderstandingofsustainabilitythatgoesbeyondthe triple bottom line – the People, Planet,Profitmodel–isvitalifwearetorealizeourambitionofbecomingthebestoffshoreconstruction contractor in the world in carefully selected segmentsandregionsofthemarket

• Our Sustainability Report is an importantelementincreatingawareness of our sustainability efforts,andincreasingtransparencyamongourstakeholders

• Sustainability is a business enabler, and we believe it will help us remain afinanciallyhealthycompany

• Sustainability is everyone’s responsibility.

“Embedded sustainability efforts clearly result in a positive impact on business performance.”

-TensieWhelanandCarlyFink,Harvard Business Review


Roadmap Sustainability

Sustainability and Heerema

“We believe that becoming the best offshore construction contractor in the world in carefully selected segments and regions of the market, while moving to the next level of sustainability, will take a concerted effort from everyone in the company.”

A framework for achieving a sustainable company

Over the last few years we have made solid progressinmakingourcompanymoresustainable.Forexample,wewereoneofthefirstcompaniestoinstallLNGenginesonavessel,fittingthemtoourlatestcranevessel.Wewerealsogivenatop-15positionintheWorldGreenBuildingCouncilreportof2016,inrecognitionoftheenvironmentalcredentialsofournewheadquartersinLeiden.

However, these achievements are not always fullycommunicatedinternally.This,alongwithour continued focus on sustainability, is why we recently established a Roadmap for Sustainability.

The roadmap will help us achieve our sustainabilitygoals,andactasaplatformtoinform those internally and externally of what wehaveachieved.

Togetherwiththesupportofthesustainabilitycommunity, which is freely available for everyone to join, we believe this Roadmap will accelerateourambitionofbeingarolemodelintermsofsustainability.

13

Achievements


Thialf and Hermod at the Mafumeira Sul Field

Interview with Peter van der Graaf new VP QASHE

Achievements 15

Sustainability is a key topic within Heerema, and it has a profound impact on the way we conduct our business. But what are our sustainability aims and how are they shaped by external events? Peter van der Graaf, who was appointed Vice President of QASHE in 2016, shares his views.

Some have suggested that the agreement signed at the COP21 climate change conference in Paris will have a powerful impact the oil and gas industry. Do you agree?

‘COP21wasagamechanger,there’snoquestionaboutthat.Theresultwasessentiallyaclimateagreementthathasuniversalacceptance–174countriesandtheEuropeanUnionsignedtheParisAgreementinApril2016.Thegoalnowistomakeitwork.Andtoachievethat,countriesand companies will need to focus their efforts oninnovating,tohelpbringaboutthechangeswe need in the areas of transport, food and agribusiness,and,ofcourse,energyproduction.FortheoilandgasindustryIbelieveitwillbecomeanumbersgame.AndbythatImeancompanies will need to address the commitmentstheyfacerightalongtheprocesschain.Thiswillmeanturningsustainabilityintoa business issue, where everyone factors sustainability into their commercial calculations.Andasanindustry,ifwearetomake that succeed we need to better understand the hard facts about sustainability andtheenvironment.’

So how will Heerema ensure sustainability remains an integral part of its business?

toorganisetheprojectsuccessfully.Evenafewyearsagothiswouldhaveseemedanimpossibledelaywithintheindustry.Andweareconstantlyworkingonmakingourvesselsgreener,whichenables us to make each and every project the vesselsworkonmoresustainable.

‘But of course sustainability isn’t just about cuttingenergyuseorreducingemissions–it’salsoaboutdealingwiththepeoplewhoworkforyou,bothdirectlyandindirectly,fairly.Oneofthekeyissuesforusishumanrights.Wework very hard to ensure that our own employees enjoy the best employment conditionspossible.Butwhatabouthumanrightsalongthesupplychain?Socialauditingisbecomingincreasinglyimportant.Notonlydowe need to verify subcontracts and suppliers on whether workers have union freedoms, labour representation, and a limit on the number of hourstheywork,wealsohavetolookat:wheredo our uniforms and protective suits come from,forexample?Weretheymanufacturedusingchildlabour?Thesearetopicsthatneedtobe addressed, as recent cases, such as the textilefactoryfireinBangladesh,havetaughtus.’

What is your ultimate sustainability ambition?

‘Tobeknownasbest-in-classwithinourindustry.Wewanttohaveasustainabilityagendathatenablesustobethegreenestcompanywecanbe,withoutreducingourcompetitiveness.Ifwecancontinuetoaddvalueforourcustomers,addvaluealongthesupply chain, and add value as a sustainable player,thenIbelievewewillhavesucceeded.’

‘Heeremaisonagreenjourney.Wehavedrawnup a sustainability road map that will help us achieveourfuturesustainabilitygoals.Andwearealreadydoingagreatdealtoestablishourcredentialsinthisarea.Forexample,sustainabilitywastop-of-mindduringthedevelopment phase of our new headquarters in Leiden.Weappliedelementsofcradle-to-cradledesignandweinstalledasophisticatedthermalenergystoragesystem,whichreducesenergyuse.Thisisoneofthereasonsthebuildingreceivedan‘Excellent’ratingwhenitwascertifiedbyBREEAMNL.Andonournewestvessel,Sleipnir,webroughttogetherarangeoftechnologiestocreatethegreenest,mostsustainablevesselwehavebuilttodate.Itwill be the world’s first offshore construction vesselequippedwithadual-fuelsystem,enablingittorunonbothliquefiednaturalgas(LNG)anddieseloil.ItwillalsobefullyfittedwithLEDlighting,savingbothenergyandcostscomparedtosodiumandhalogenbulbs.’

And are you able to transfer this focus on sustainability into business projects?

‘Weareconstantlyworkingonsolutionstoreduceourenvironmentalfootprint.Oneexample is the ‘bubble curtain’, which we created to help reduce the noise levels of our pilingoperationsonunderwaterprojects.Inpreviousyearsweintroducedasinglecurtaincapableofreducingnoiselevelswithapproximately6-10dB.Thisyearwerolledoutthe ‘double bubble curtain’, which can cut noise levelsbyuptoabout15dB.”

‘OnarecentprojectintheAsia-PacificregionwerescheduledpiledrivingworktoavoidthecalvingseasonoftheHumpbackwhale.Weweren’t able to work for five out of the seven monthsavailabletous,buthavestillmanaged

Peter van der Graaf

Malaysiangovern-mentrecognisesemployment initia-tivesIn2016,wewereawardedtheprestigious‘Exemplary Company Award’ by the Ministry of Human Resources in Malaysia for our cooperation with the Industrial Vocational Institute(ILP)andtheapprenticeprogramsweruninthecountry.Thegovernmentalsorecognisedourlong-standingrelationshipwiththe Malaysian labour market, from where we haveemployedaround1,000fleetpersonneloverthecourseofmanyyears.

Our cooperation with the ILP includes designinganddevelopingtailor-madecoursesforMalaysianfleetpersonnel,aswellasusingtheirtrainingfacilitiesandspecialistservicestohelp(re)traintechnicalstaff.

Aspartofourfocusoncontinuallydevelopingaskilled workforce, in 2016 we successfully trained10weldersthroughourapprenticeprogram.Theaimistoexpandthisprogramtoinclude machinist apprentices and other disciplinesinthenearfuture.

WhilemanyHeeremacolleagueshavecontributed to the success of our important programsinMalaysia,ChenTeckFoonghasworkedtirelesslytohelpre-energizethefleetwithyoungandtalentedindividualsanddeservesspecialrecognition.

LEDLighting progress

Lastyearathoroughselectionwasmadetodetermine the best LED armatures for the Thialf.Lifetime,robustnessandlightefficiency(lumen per watt) were the most important selectioncriteria.Inthelastquarterof2016,LEDfloodlightshavebeeninstalledinthestarboardcraneboom.TheplanistocompletetherestoftheLEDoutfittingontheportsidecrane, accommodation, weather decks and musterstationsinthefirstquarterof2017.WiththeLEDlightingweexpecttosaveapproximately60%ofpowercomparedtotheoldlightingsystem.Based on the reduction on needed power we calculated a return on investment of about five years,whencombinedwithsubsidiesgrantedtoHMC.AfterallplannedLEDlightingisinstalled the reduction in power requirement willbemonitoredtoverifytheseassumptions.Whenthisprojectshowstherightoutcomewealso want to have a look at the other vessels, AegirandBalder.TheSleipnirisalreadybeingoutfittedwithLEDlighting.Theseincrementalstepchangescombinedinducesignificantsavings,bothintermsofourimpactontheenvironmentbutalsofinancially.

Over 40% of employees are Engaged and Committed.

There is a more extreme contrast between this group and the not E&C group compared to the previous survey

HighlightsEffectory(EmployeeSurvey)

• Overall survey shows an improvement comparedto2014.

• Over40%ofemployeesareengagedandcommitted,approximately10%higherthanthe industry benchmark


Achievements

Helpingourpeoplegrow

Our people are our most valuable resource. Adhering to fair employment practices, respecting and upholding human rights principles, and investing in developing and training our workforce helps us attract and retain the most talented people.

Sustainable employability

Webelievethatgivingourpeopletheopportunitytochallengethemselvesleadstonewlearningpossibilitiesandencouragegrowths.Oneexampleofthisisbysupportingourpeopleinmovingbetweendepartmentsorgeographicallocations.

In 2016 we launched an internal mobility programcalled1-2-MOVE,whichaimstogiveusacompetitiveadvantagebymakingusmoreadaptabletochangingmarketcircumstances.Theprogramalsohelpsusutilizethefullpotentialofourownpeople,minimizingtheneedfortemporarycontractorsoragents.

Performance management

Everyone within Heerema follows our performancemanagementprocess,inaccordancewiththeperformancemanagementcycle.Basedonastandardizedprocess,thiscycleenablesustoeffectivelymanageandcalibratetheperformanceofouremployees.

At the end of 2016 we rolled out a new performancemanagementprocessandsystem,whichwilltakeeffectin2017.Thisprocessisbuilt on three pillars, in which both the employeeandtheassessorshould:1. Viewperformancemanagementasacontinuousprocessthroughouttheyear

2.Take equal initiative and responsibility for the process

3. Shouldhavein-depthfeedback-drivenconversationswitheachother.

Employee satisfaction

We use an employee survey to measure employeesatisfactionandengagementeverytwoyears.Thelatestsurveywasconductedin2016,andsomeofthesurvey’shighlightsinclude:• Over40%ofourpeoplesaidtheyfeelengagedandcommitted

• Themostvaluedcriteriaaremeaningfulwork,beingproudtoworkatHeerema,andhavingopportunitiestoimprove

• Role clarity and focus has improved since 2014

• Peoplesaythattheyfeelsufficientlychallengedintheircurrentposition

• Morepeoplesaidtheyfeelfitandhaveagoodwork-lifebalancethanin2014.

Around73%ofthealmost1,700employeessentthesurveyresponded,in-linewiththecompany’speergroupbenchmark.

Over 40% of employees are Engaged and Committed.

There is a more extreme contrast between this group and the not E&C group compared to the previous survey

HighlightsEffectory(EmployeeSurvey)

• Employees are proud to work for HMC, althoughnoteveryoneisfamiliarwithorsupportsHMC’sManagementAgenda

• Efficiencyscoreshaveincreased.Bottom-upand open communication are best in class

17

Projects


Hermod and Bylgia at the Moho Field

Sustainable Procurement Tool

Beingatrulysustainableorganisationinvolvesmorethansimplylookingatsustainabilitywithinthecompany.Italsorequirestakingresponsibility for the sustainability of the productsandservicessourcedalongtheentiresupplychain.Webelieveitisourresponsibilityto assess the service delivery of our suppliers, ensuringthattheynotonlyadheretotherequired environmental standards, but also respectthehumanrightsofworkersandcommunities.

To help us achieve this, in 2016 we partnered with six other companies in the maritime sector todevelopasustainableprocurementtool.Theaim is to create a questionnaire that can be shared with suppliers, which will act as a sustainabilityaudit.Thiswillenableusandourpartnerstoevaluatethesupplieronarangeofsustainabilitytopics,suchasworkingconditions, discrimination, waste, and emissions.Theresultscanthenbeshared

amongparticipatingcompanies,avoidingtheneed to carry out multiple audits on the same supplier.

The tool was developed based on several procurement approaches applied by maritime companies,andinternationallyrecognizedsustainabilitystandards.Itusesaquestionnairedividedintosevencategoriestocreateadashboardofresults.Theseareaccessibletoparticipatingcompanies,whiledetailedassessmentresultscanbesharedamongallparticipantsifpermissionisgrantedbythecompanyunderreview.

We believe the tool offers a number of real-worldbenefits.

Theseinclude:• It provides a direct focus on Corporate SocialResponsibility(CSR)usingasimplequestionnaire and interview format

• Itwasdevelopedbylike-mindedcompaniesin the same sector, and aims for

SustainableSupplyChainManagement

improvement rather than retribution• For procurers, it produces a simple but

effective overview of CSR levels of suppliers in the maritime sector

• Forsuppliers,beingassessedbyonecompany means the results are applicable formany,savingtimeandeffort.Italsohelpsthem understand those sustainability areas inwhichtheycanimprove.

We completed our initial review of the tool at theendof2016.Ournextstepsaretofinalisereviewertraining,produceauditingguidelines,anddevelopastrategyidentifyingwhichcompanieswewanttoapproachandaudit.Through2017wewillalsoworkwithotherparticipantstomarketthetoolandgrowthenumberofmaritimeorganisationsthatuseit.We aim to publish initial results in our next sustainabilityreport.

Projects 19

LocalemploymentandsocialengagementinAngola

HeeremahasrootsinPortoAmboim,Angola.Webeganoperationstherein2009,thenin2014 were part of a consortium that won a contracttoprovidearangeofservicesforthedeep-waterKaomboproject,withpreparationworktakingplaceinPortoAmboim.Today,weemployover680inPortoAmboim,530ofwhomarelocalemployees.Andtheyareadiverseandskilledworkforce,rangingfromcleanerstolocalboardmembers.

One of the key aspects of local employment is providingsuitableeducation.Wecarryouton-the-jobtraining,andfocusoninstructingacrossarangeoftrades.Weoperateaweldingschool, for example, and the team proudly includestwofemalewelderswhore-trainedfromthecateringunit.Wehavealsotrainedlocalstafftobecomeriggers,askilledcraftfocusedontheliftingandmovingofextremelylargeorheavyobjectsusingcranesorchainhoists.

And because of the Porto Amboim yard’s relatively remote location, we have created an infrastructure that provides for employees’ needs bothwhentheyareworkingandwhentheyareresting.Oneexampleisthewatertreatmentplant we constructed to supply the yard and the

106 room hotel that we use exclusively with clean, safedrinkingwater.Wealsogenerateourownpowerfromgenerators,andoperateacanteenthatsuppliesallworkerswithonemealaday.Local employees are also provided with health insurancecoveringtheirfamily,andweoperateourownhealthclinicstaffedbyafull-timedoctorandtworegisterednurses.

Social engagement

But employment is not the only contribution wetrytomaketothelocalcommunity.Wehave looked at a number of other ways to supportthelocaltown,whichinclude:

Orphanage

We are proud backers of the REMAR Boys’ Orphanage,whichsupportsyoungboyswhoare orphans, have lived on the streets, or have sufferedfromanaddiction.Theorphanageprovides shelter and education, and works to reintegratethechildrenintosociety.Inadditiontosupportingthemanagementoftheorphanage’sbuildingsandtechnicalfacilities,wealsoprovidefoodandbasichealthcare.Tohelptheorphanagegeneratesomeincome,we

willtransforma20-footshippingcontainerintoa small shop from which they can sell detergentsandcleaningproductstothelocalcommunity.Andin2017wewillco-sponsorrenovationworkontheorphanagebuilding,includingrepairstotheroof,doors,windows,kitchenfloorandwalls.

Library

We are proud sponsors of a library in the town, whichisregularlyfullofmotivatedstudentswhowanttolearn.Aswellasprovidingaccesstobooks,thelibraryalsooffersarangeofcourses,includinginEnglishandIT.Thelibraryhaschangedthefutureofmanyyoungpeopleinthetown, and we believe it will be one of Heerema’s truelegacieswhentheKaomboprojectends.

Old peoples’ home

ThelocalgovernmentprovidedhousinginPortoAmboimforanoldpeoples’home.TwoofHeerema’s employees volunteer at the home andtheyapproachedthecompanyrequestingsupport.Wehaveinvestedasmallamounttohelpimprovethedailylifeoftheoccupants.


Worker at the Porto Amboim Yard in Angola

BacktoBasicsprogramme

TheBacktoBasics(B2B)program,launchedin2015,startedtoreapitsfruitslastyear.Itis established to help us survive the current challengingmarketconditionswhilecreatinga solid base on which to develop operational excellenceandseizeopportunitieswhenthemarketimproves.

Toachievethis,wearecreatingaself-learningandself-improvingorganizationthatiscostcompetitive and safely delivers projects of uniformqualityandpricing.Thisinvolvesfocusingonthefollowingthreekeyobjectives:

• Improvingourbusinessprocessesandworkingpracticestofuture-proofourwayofworking

• Empoweringandmobilizingallemployeestochallengethestatusquo,bothon-andoffshore

• Maintainingconstructivedialoguewithourclients and subcontractors to ensure that we are able to prepare and execute projects effectively.

ExamplesofprojectswedevelopedthroughtheB2Bprogrammein2016include:

• Fuel:aimedatseekingwaystoenhancefuelefficiency

• Equipment:focusedonreducingtheuseofproject equipment used once and then discarded

• Procurement:focusedonsourcingtheprocurement of pipeline production consumablesclosertotheworkingarea,reducingtransportationneeds.

Projects 21

Clair Ridge Field

Decommissioningandremoval

Althoughtheoilandgassectorisnostrangertomarket volatility, the focus of many companies in the latest downturn is to develop tactical strategiesforthefuture.ForHeerema,onedevelopingareaisthedecommissioningandremoval of offshore installations in a safe, environmentally-friendly,andcost-effectiveway.WietskeVanSanten,AreaEngineeringManagerforNorthSeaDecommissioning,discusses the company’s approach to decommissioninganditsfutureimportance.

What is decommissioning?

‘TheNorthSeaiscoveredbylegislationthatsaysifyouinstallanoilorgasplatform,youareresponsibleforremovingit.Manyoftheplatforms in the North Sea were installed in the 1980s,andtheyarecomingtotheendoftheirlifespan.Forus,decommissioningisaboutremovingtheplatforms,bringingthemtoshore,andthenrecyclingasmuchaswecan.Typically,alargepercentage–Ibelieveasmuchasanastonishing99percent–ofthematerialsbroughttoshoreisrecycled’

How does the process work?

‘Decommissioningstartswhenaplatformhasbeenshutdown,orisclosetobeingshutdown,andourinvolvementbeginsatdifferentmomentsduringthisprocess.Sometimesclientshaveonlyjustbegunthinkingaboutdecommissioningcertainplatformswhenwetalk to them, and sometimes the platforms have beenshutdownforalongtimewhenwegetinvolved.Eachprojectisdifferent.Weworkedon a project in 2016 where we had preparation timeof6-months,butwe’vealsoworkedonprojectsthattooksixyears.

‘Thefirststepistocarryoutextensiveengineeringworktoensurethatwecanliftand

removetheplatformsafely.Wethensplitthecomponents we can remove separately, and re-installorchecktheeyeletssothatwecanlifttheunitssecurely.Giventheirage,andthehostile conditions they have endured, many of the platforms are rusty and have fallen into a stateofdisrepair.Sothefocusisonmakingtheplatformsafeandensuringthereisnodangertothecrew.Partofmakingthestructuresafeorshuttingitdowninvolvesremovinghazardoussubstances, which have often been left in the pipes,tanksandmachinery.Thiseitherneedstobecleanedorsecuredbeforeremoval.Andbecausetheplatformsweredesignedtobeasfire-proofaspossible,thereisalsooftenasbestos on board, and this also needs to be removedundercontrolledcircumstances.’

Is our decommissioning business increasing?

‘Thebusinessisincreasing.Heeremahasremoved around six or seven platforms in the past,usuallywithoneortwodecommissioningjobsrunningatthesametime.Atthemomentweareworkingontwoprojects,andwearestudyingandtenderingforavarietyofotherjobs,includingfourlargeprojectsscheduledtobeawardedin2017.Thisincreasehighlightsthehugegrowthindecommissioningprojectsthatarecomingonthemarket.’

What are some of the important steps we need to take to win projects?

‘Athoroughpre-projectstudyiscrucial,aswehave to undertake extensive research to ensure we can carry out the project as required, and thatwecanengineereverythingasweneedto.Wecarryoutin-depthengineeringstudiesbeforeweactuallysubmitatender.

Atthemomentwearetryingtoteamupwithoperatorstoexplainwhatwecanbringtothedecommissioningprocess.Heeremaisregardedas a company that delivers, so our reputation in the market is that we are robust and do what we promise.Weareanexperiencedoperator,withmore successful removals than most of our competitors.Thelearningcurveisstillverysteep, and our experience means we learn a greatdealoneachprojectweworkon.Also,wehavetheliftingcapacitythatmanyofourcompetitorsdon’t.’

How do we ensure we take materials away safely and with limited environmental impact?

‘Weidentifyifthereareanyhazardousmaterialsduringthepre-projectstudy,andifthere are we, or our partner or subcontractor, hire in specialists to remove these materials safelyanddisposeofthemonland.Wealsohavetobeawareoflocalwildlife.Ifanyrareorendangeredspecieswerediscoveredontheplatform, for example, we would have to stop workingandcarryoutanenvironmentalsurvey.Ourprimarygoalistoremovetheplatformssafelyandwithnodamagetotheenvironment.’

Wietske van Santen


Projects 23

Murchison Decomissioning

Fleet


HMCownsthreeoftheworld’slargestsemi-submersiblecranevessels.ThesearetheThialf,deep-waterconstructionvesselBalderandtheHermod.

Next to the crane vessels, HMC also owns one deep-waterconstructionvessel:theAegir.TheAegirisamonohullvesselwiththecapabilitytoexecute complex deepwater infrastructure and pipelineprojectsinultradeepwater.

HMCisalsocurrentlydevelopinganewvessel:thenew-generationsemi-submersiblecranevessel Sleipnir, which is scheduled for delivery in2018.TheSleipnirwillbethelargestcranevesselintheworld,capableoflifting20,000[mT].InadditiontheSleipnirhasbeenoutfittedwith numerous improvements to make her more sustainable, the most important one beingheredualfuelenginesthatcanrunonLNG.

Itcanbestatedthatourfleethasthebiggestimpactintermsofourenvironmentalfootprint.Withanannualconsumptionofroughly70,000[mT] of MGO per year, HMC’s fleet has plenty ofopportunitiestoimprove.Theseareshowninthesubsequentsections.

Fleet 25

Decommissioning of Murchison Platform

operations (DP - 2/3) , Heavy Lifting on DP - 2/3)hybrid Thialf operations

Transit, no hybrid operations standy (DP - 1)possible future

hybrid operations

Heavy lifting

Hotel

Thruster

Typical energy demand on the generators of the THIALF

5MW

10MW

15 MW

THIALF POWER PRODUCTIONPOWER REQUIREMENT

Max designpower

requirement

Actualexample

powerrequirements

powerproduction

4 generators

23%-100%

23%-100%

23%-100%

23%-100%

POWER PRODUCTION

powerproduction

3 generators+

EES

35%-100%

EES

35%-100%

35%-100%

power4X23% 3X35%

EES

norm

al

hybr

id

norm

al

hybr

id

norm

al

hybr

id

norm

al

hybr

id

10 % 10 % 10%

maintenance exhaust fuel

current power configuration

hybrid power10 % IMPROVEMENT

MAINTENANCEEXHAUSTFUEL

power

Spec

ific

Fuel

Oil

Cons

umpt

ion

35%

23%

impr

ovem

ent

HYBRIDThe SFOC&Power graph shows how much fuel an engine uses on each power level. The lower the fuel consumption the more efficient the engine runs

by shutting down 1 engine and running the other 3 engines on higher power 10% fuel, exhaust and maintenance can be saved

During standby and transit the hybrid concept is not applicable.

During operations the battery is used to deal with the peak power of the cranes.

Enabling the Thialf to run on one less engine per engine room and still ensuring the maximum designed power requirement

maximum designed power requirement

3x3x

HYBRID is based on proven technology... maintaining the operational capabilities and optimizing power efficiency.- Fokke van der Veen

HYBRIDHybrid Power System Thialf

In2015theequipmentsupportgroupbeganastudyintothefeasibilityofusingbatterypacks to provide power to the Thialf power managementsystem.Thegoal?Tocutthenumberofdieselgeneratorsrunningatthesametimewithoutreducingthevessel’soperatingcapabilities.Thestudywascompletedsuccessfullyin2016.

DevelopingtheHybridThialfinvolvesconnectinganumberofhigh-poweredbatteriestotheenginesforpowermanagementpurposes.Thissystemwillbeabletonormalizethedynamicloadandpower spike demands of the Thialf, without compromisingthedynamicpositioningorcranecapabilities.Whilesomeofthegreatestsavingswillbemadethroughfuelreduction,oneofthemoststrikingelementstocomeoutofthestudywastheresultingreductioninmaintenancecosts.

Initialestimatessuggestthatwhilewecanmakefuelsavingsofaround5percentperannum(or10%duringDPmode),wewillbe able to cut maintenance costs on the dieselenginesbyperhapseven20percentperannum.Thiswillhelpreduceourcarbonemissions by approximately 3000 metric tonnesperyear,andthevesselwillgeneratelessnoisebecausethedieselengineswillrunlessfrequently.


operations (DP - 2/3) , Heavy Lifting on DP - 2/3)hybrid Thialf operations

Transit, no hybrid operations standy (DP - 1)possible future

hybrid operations

Heavy lifting

Hotel

Thruster

Typical energy demand on the generators of the THIALF

5MW

10MW

15 MW

THIALF POWER PRODUCTIONPOWER REQUIREMENT

Max designpower

requirement

Actualexample

powerrequirements

powerproduction

4 generators

23%-100%

23%-100%

23%-100%

23%-100%

POWER PRODUCTION

powerproduction

3 generators+

EES

35%-100%

EES

35%-100%

35%-100%

power4X23% 3X35%

EES

norm

al

hybr

id

norm

al

hybr

id

norm

al

hybr

id

norm

al

hybr

id10 % 10 % 10%

maintenance exhaust fuel

current power configuration

hybrid power10 % IMPROVEMENT

MAINTENANCEEXHAUSTFUEL

power

Spec

ific

Fuel

Oil

Cons

umpt

ion

35%

23%

impr

ovem

ent

HYBRIDThe SFOC&Power graph shows how much fuel an engine uses on each power level. The lower the fuel consumption the more efficient the engine runs

by shutting down 1 engine and running the other 3 engines on higher power 10% fuel, exhaust and maintenance can be saved

During standby and transit the hybrid concept is not applicable.

During operations the battery is used to deal with the peak power of the cranes.

Enabling the Thialf to run on one less engine per engine room and still ensuring the maximum designed power requirement

maximum designed power requirement

3x3x

HYBRID is based on proven technology... maintaining the operational capabilities and optimizing power efficiency.- Fokke van der Veen

HYBRID

Fleet 27

The development of the Sleipnir

In2019wewillbringintoserviceSleipnir,ournewestvessel.Itwillbetheworld’slargestsemi-submersiblecranevessel,andwillbeself-propelledwithatransitspeedof10knots.Forthecompanyit’sarevelation,bringingtogetherarangeoftechnologiesthatcreatethegreenest,mostsustainablevesselwehavebuilttodate.SojustwhataretheSleipnir’sgreencredentials?

Clean and efficient

• Sleipnirwillbetheworld’sfirstoffshoreconstruction vessel equipped with a dual-fuelsystem,enablingittorunonbothliquefiednaturalgas(LNG)andmarinegasoil(MGO).Aswellasreducingthevessel’senvironmentalfootprint,runningonLNGisalso more cost effective, with market supply anddemandforcesoverthelongertermfavouringLNGcomparedwithMGO.

• Thehullwillbepaintedwithsilicon-basedanti-foulingpaint,atypeofpaintthatreleases no harmful substances into the environmentandcreatesaveryslicksurface.Thismakesitextremelydifficultformarinelife, such as barnacles, to attach themselves tothehull.Thismeanslessdragandsavesagreatdealoffuel.

• ThevesselwillbefittedwithLEDlighting,savingbothenergyandcostscomparedtosodiumandhalogenbulbs.Unlikeconventionallighting,LEDshavealifespanof up to 100,000 hours, and are typically 60 percentmoreenergyefficient.Notonlydoesthiscutenergyuse,italsoreducesmaintenancecostsandincreasessafety.

Benefiting the natural environment

• The spread of marine invasive species via ships’ballastwatercancauseglobalissues,and in the worst cases can lead to the extinctionofnativespecies.Tohelppreventthis, we will include an advanced oxidation technologytotreatSleipnir’sballastwater,whichwillkilloffanyspeciescaughtinthetanks,renderingthemharmlesstoothermarinelife.

• One of Sleipnir’s future roles will be to install a variety of offshore facilities around theworldforourclients.Inmanycases,thisrequires anchor installations in place by drivingpilesintotheseafoor,usingalargehammer.Thedownsidetothistechniqueisthatitcreatesagreatdealofunderwaternoise.Weareintroducingthelatestinnovativepiledrivingnoisereductiontechniques,enablingustobalancetheneedsofourclientswiththelocalenvironment.

Ingenious technologies

• TheLNGforthedual-fuelsystemhastobestoredatextremelylowtemperatures.Usingacoldrecoveryprocess,wewillusethe low temperature of the LNG to chill watertouseinair-conditioning.Thismeanswedon’thavetoaddenergytofirstcompressandthenevaporateittogeneratecold,cuttingenergyrequirements.


Fleet 29

Ambition


Fossilfuelscontinuetodominateenergysupply,but the composition of investment flows points towardsareorientationoftheenergysystemCost deflation, efficiency improvements and reduced activity levels are the key contributors tothesteepfallofupstreamoilandgascosts,but this trend may not be sustainable in the case that demand for services and equipment picks up rapidly

Amajorshiftininvestmenttowardslow-carbonsourcesofpowergenerationisunderway.Newlow-carbongeneration–renewablesandnuclear–fromcapacitycomingonlinein2015exceedstheentiregrowthofglobalpowerdemandinthatyear.

Globally,energyinvestmentisnotyetconsistentwiththetransitiontoalow-carbonenergysystemenvisagedintheParisClimateAgreementreachedattheendof2015.

Ambition 31

Jacket for the Culean Field

Projects of the future

which cause noise pollution underwater just as theydoonland.Thishasledtosomecountriesintroducingstrictnoiseregulations,inabidtomitigatetheimpactconstructionhasonporpoises,seals,fishandotherwildlife.

Wehaveworkedhardondevelopingwaystoreducethenoiselevelsofourpilingoperationsonsuchprojects.Onesolutionwecurrentlyuse, and continue to improve, is called the ‘bubblecurtain’.Thecurtainiscreatedbypushingairoutofaperforatedtuberingthatsitsontheseafoor,andiscapableofreducingnoiselevelsbyuptoabout15dB.Inaddition,weareworkingwithseveralsupplierstoimproveexistinganddevelopnewtechnologiestodesignandinstallfoundations

Wearealsomonitoringothermarkets,forexampletidalandOceanThermalEnergyConversion.Thelatterisaclean,zero-emissionandrenewableenergytechnology,whichconvertsheatintropicaloceanstoelectricity.Otherinterestingoffshoregrowthareasincludeaquaculture,whichisexpectedtogrowsteeplyinthecomingdecadesinresponsetoaburgeoningworldpopulation,andcarboncaptureandstorage,wherethereisthepotentialtousecurrentgasfieldstostoreCO2.

Near future: Changes to vessels

Wearealreadymakingprofoundchangestoourvesselstomakethemmoreenergyefficientandsustainable.OneexampleistheHybridThialf,inwhichweareexploringinstallinganumberofhigh-poweredbatteriestotheenginesforpowermanagementpurposes.Anotherexample is the Slepinir, our latest vessel which willbelaunchedin2019.Itwillbetheworld’sfirst offshore construction vessel equipped withadual-fuelsystem,enablingittorunonbothliquefiednaturalgas(LNG)anddieseloil.

Aswellasimprovingthevessel’senvironmentalperformance,runningonLNGisalsocheaperandmoreefficient,reducingcosts.

Beyond the Sleipnir, our vessels will have an even greaterfocusonsustainability.Ourgoalistobeasinnovativespossibleintermsofdesigns;wewanttogobacktothedrawingboardandlookathowweneedtoworkdifferentlyoffshore.Canwechangethewayweexecuteriskyon-boardoperations?Canweusebigdatatobettermanageoursystemsandcarryoutmorepreventivemaintenance,enablingustoreplacepartsbeforetheybreak,reducingbreakdowns?Will we be able to benefit from the current developments on autonomous ships, necessitatingashiftfromoffshoretoonshoreworkingformanyofouremployees?WebelievetheanswertoallofthesequestionsisYes.Nottomorrow,butgraduallyovertime.

Far future

Lookingfurtherahead,weexpecttoseeanumberofchanges.Theseinclude:

• Wewillsourceourgoodslocally,minimisingour environmental footprint

• Our vessels will require minimal maintenancethroughtheuseofintelligentmaterials:nomorecorrosionworries

• Yards will be mobile and modular, and will beputtogetherwhenneededatanylocation,includingfloatinglocations

• Wewillincreasinglyuserobotsoffshore,which will be mainly operated onshore from ouroffice

• 80%ofouroffshoreworkwillbeperformedon land

• Oursimulationcentreswillguideoffshoreoperationsduringtheproject

• Ultimately,ourvesselswillhaveanetzeroenvironmentalfootprint.

The oil and gas (O&G) industry is going through what many believe is one of the most transformative periods in its history. For industry operators such as Heerema, the ongoing, challenging market conditions mean that we have to continuously review and adjust our organization to ensure that we weather the storm. This will enable us to continue operating an efficient, competitive, fit-for-purpose company that is prepared for the future. A future that may see the industry redefined, with a shift towards projects covering a broader range of industries.

Near future: Changes to current projects

For some projects in the Gulf of Mexico, there’s atrendtowardsusingFloatingfacilities,particularlySemi’sorFPSO’s.Thiswillresultinadecrease in our traditional facilities, and a greaterneedfordeepinstallation.Thiswillresultinmoredeep-waterlowering,includinglongertiesbacksandpipelineinstallation.Forthemooringinstallations,thismeanswemayneed to use smaller vessels, which use less fuel andaremoresustainable.

Near future: Sustainability projects

While in the near future the majority of our projects will still come from the O&G industry, wealsoexpecttoseegrowthinanareawherewealreadyhaveapresence:thewindindustry.Inrecent years there has been a rapid rise in the numberofoffshorewindfarmsbeingconstructed,particularlyintheNorthSea.Thishasledtoagreaterawarenessoftheimpactsuchprojectshaveontheenvironment,includingthelocalwildlife.Oneexampleispilingoperations,

Wim de Boer


Ambition

• Fossilfuelscontinuetodominateenergysupply,butthecompositionofinvestmentflowspointstowardsareorientationoftheenergysystem

• Costdeflation,efficiencyimprovementsandreducedactivitylevelsarethekeycontributorstothesteepfallofupstreamoilandgascosts,butthistrendmaynotbesustainable in the case that demand for services and equipment picks up rapidly

• Amajorshiftininvestmenttowardslow-carbonsourcesofpowergenerationisunderway.Newlow-carbongeneration–renewablesandnuclear–fromcapacitycomingonlinein2015exceedstheentiregrowthofglobalpowerdemandinthatyear.

• Globally,energyinvestmentisnotyetconsistentwiththetransitiontoalow-carbonenergysystemenvisagedintheParisClimateAgreementreachedattheendof2015.

Worldenergyinvestmentoutlook2016key points

Changeinoildemandbysector,2015-2040.Theglobalcarfleetdoubles,butefficiencygainsbiofuels&electriccarsreduceoildemandforpassengercars.Growthelsewherepushestotaldemandhigher

33

YoungHeerema:Ourfuture


Our future rests on the shoulders of the young people we employ today. And as we noted in last year’s report, one of the topics discussed during the recruitment process is sustainability. Not only do we want to know where candidates stand on the issue, candidates want to know what our sustainability agenda looks like. So what do some of Heerema’s young talent think of the company’s attitude and outlook towards sustainability? We spoke with three members of the Young Heerema group to find out: Robert Weegenaar, Daniel Biegel and Priscilla Broer.

Sustainable employment and employees who act sustainably. How important are these two topics to you as a Heerema employee?

RobertWeegenaar:‘It’sabigissuethathasattractedalotofattentionrecently.Atthesimplest level we are all expected to make small contributionstobeingmoresustainable,byseparatingourwasteorrecycling.Butthecompanyalsochallengesustolookforwaystobemoresustainableinourdaytodaywork.Forexample,byworkingtowardssmarterdesignswhichsavefuelorreducingtheamountofmaterialneededforaproduct.Thesecanbeformalandinformalideas,butbothgeneratediscussionsandhelpusdevelopnewsolutions.’

PriscillaBroer:‘Ithinkthecompanyhasanexcellent record in terms of sustainable employment.Manypeoplehavebeenwiththecompanyforaverylongtime,andtherearerealopportunitiestodevelopyourtalents.Yetthereisstillastrongflowofyounggraduatesjoiningeach year, so there are lots of new ideas and

valuescomingintothecompany.Ithinkthecompany views employees as its main asset, and understands that the ideas we come up with today will become part of tomorrow’s operations.Thismeanssustainabilitywillinevitably become part of our business practices.’

DanielBiegel:‘It’sinteresting,becauseeventhoughweoperateintheoilandgasindustry,Ibelieve we are already quite a sustainable company.IfIlookatthepeopleIworkwith,whiletheoldergenerationsupportssustainability they are not always completely comfortablewiththechangesrequiredtomaketheleap.Ithinktherealshiftwillcomeinthenext few years, when sustainability truly takes onthesameimportanceformygenerationassafetydidforthepreviousgeneration.’

What is your sustainability vision for the future?

RobertWeegenaar:‘First,Ithinkthetransitiontowardssustainableenergyisgoingalotfasterthanevenafewyearsago.Peoplearerealisingthatthecostofsustainableenergyisdropping,andthatisadriverforchange.Second,weneedtobeflexible.Atfirstwethoughtthattheoilagewouldendbecauseofalackofoil,butthestoneagedidn’tendbecauseofalackofstone– it was because of the introduction of new technologies.Ithinkwehavetobeawareofthat.IseeHeeremaasatechnologycompany,andwecanuseourtechnologiesinmanydifferentareasaslongastheyareoffshore.Ipersonally feel that we have a responsibility to bemoresustainableandleadbyexample.Wecould work more closely with our clients and try tosteertheminasustainableway.’

DanielBiegel:‘It’sachallenge,aswereallyoperate in a niche market focused on deep

waterandheavylifting.Soperhapsweneedtomoveourfocusslightlyandlooktoinstalloutsideofthenichemarketwe’recurrentlyin.Wecouldalsolookforwaystodomoreduringprojects.Forexample,whilewenowfocusonreusingriggingsandgrillagesratherthenscrappingthem,whichiswhatusedtohappen,wecouldstilldomoreinthisarea.’

What is the most important recent example of sustainable employment within the company?

PriscillaBroer:‘Wehavetheinternalmobilityprogramme,whichencouragesemployeestobemoreflexibleandhelpoutinotherdepartments.Thisisawin-winsituation,asyougettolearnabout different parts of the company but your job’sstillwaitingforyouwhenyoureturn.Thecompanyalsoinvestsheavilyinyourfuture.Theyhelpwithsoftskillsandprovideinternaltraining,ensuringthatyoualwaysfeelchallengedandsharpinyourjob.There’sacultureofproactivityatHeerema,soifyoufeellikedoingsomethingelseyoucantalktoyourmanagerandhelpshapeyourowncareerpath.Youcanbecomealmostanything,aslongasyouspeakupandputyourideasforward.’

What kind of projects do you see Heerema doing in the next decade or two?

RobertWeegenaar:‘Usingourcurrentskills,butindifferentareas.Forexample,wehavebeenworkingonaprojectthatispartofthepre-decommissioningscope.Beforebeingabandoned,oilplatformswellsareplugged.Wecanplugthewellsfasterandcheaperwithcleanermachines,meaningwecanremovetheplatformquickerandeasier.Thistypeofdecommissioningworkcouldbeimportantforthecompanygoingforward.’

“In the next decade [...] the brightest engineers, managers and investors in the energy industry will quickly shift their brains and bucks towards more visionary and sustainable organizations – in fact, Shell shareholders are already asking for a change of course. This cultural mindset will only reinforce the acceleration towards renewable energy – and possibly flip the market even more quickly than now predicted.”

Ambition 35

Young Heerema at the Race of the Classics


Crane Maintenance at the Balder

Thefutureofenergy

Ambition

Changeintotalprimaryenergydemandfrom2016(left)to2040(right).Low-carbonfuels&technologies,mostlyrenewables,supplynearlyhalfoftheincreaseinenergydemandin2040

Coby van der Linde

37

The oil and gas industry is going through a turbulent period. Between 2014 and 2016, for example, the price of oil fell from over $100 per barrel to less than $40, a victim of oversupply and decreasing demand. So what future changes and developments can we expect to see in the energy sector? Heerema spoke with Coby van der Linde, director of the Clingendael International Energy Programme, which acts as an independent forum for governments, NGOs, the private sector, the media, politicians and others who are interested in changes and developments in the energy sector.

What are your views on an energy transition away from oil and gas?

‘Energytransitionshavebeentakingplacecontinuously since the Industrial Revolution, andthesetransitionsprimarilyinvolveenergymixes.Changesfromthetraditionalenergymixdominatedbycoaloroiltosomethingmorediverse,includingnaturalgas,nuclearandrenewables, may be rapid at a national and

continue to use coal intensively for quite some time.However,IenvisagebothIndiaandChina’sfuturedecisionstobedrivenbyairpollution.IfyoulistentotheIndiangovernment,theyliketheideaofusingnaturalgasbutarereluctanttobetiedtoimports.Fromthatperspective,youcouldconcludethatgasiscurrentlymorecaughtupingeopoliticsthatoil.’

What do you expect to be the next big energy issue?

‘Thenextissueisgoingtobemethane.Forcompaniesinvolvedinthesector,thisisgoingtobethelicencetodobusiness.Naturalgasisoftenviewedasbeingacleaner,lower-carbonalternativetootherfuels,suchascoalandoil.But the reality is that methane emissions, which occuralongtheentirenaturalgasproductionchainfromextractionandprocessingthroughtodistribution,isaveryseriousissue.Methaneisapotentgreenhousegas.Producerswillneedtostartmonitoringanddisclosingtheirmethane emissions if they are to satisfy regulatorsandinvestorsandcontinuetounderpintheirclaimofnaturalgas’scleanproperties.Thosecompaniesthatapproachitina transparent and open manner will be best able tomanagetheirriskandlookforsolutions.’

And what role can the marine sector play in tomorrow’s energy market?

‘From Heerema’s perspective, I think the focus shouldbeonlookingattheopportunitiesavailabletothemanddecidingwheretheirexpertiselies.Isitingeothermal,forexample?Orheavylifting?Takeadvantageofwhateveryou are best at today, but be prepared to move inanewdirectionifyouseegrowthopportunitiestomorrow.’

regionallevel,butsloweratagloballevel.Ingeneral,weseethatcountrieskeepmovinguptheenergyladder,meaningthattheyintegratelargerandlargerproportionsofspecializedfuelsintotheirenergymixesfordedicatedtypesofenergydemand,suchasheating,cooling,electricity,andmobility.Iexpectthemarketdynamicsmaychangeforoilandgascompanies,astheywillincreasinglyhavetocompete with renewable fuels for their market share.Thatsaid,Idon’tbelieveoilandgascompanies should expect to have materially differentroleswithinthenext20years.Inthegassector,forexample,thecombinationofagreaterfocus on environmental policies and on technologicalandeconomicdevelopmentshasgivennaturalgasagreaterroleinthepowermix’.

Regionally, where do you see the next major energy developments?

‘Asiaisaparticularlyinterestingregion.Chinaisfocusedonenergyefficiency.Theywilltrytosqueezeoutenergyinefficienciesthroughtheuseofgas,andwilltrytoreducetheirrelianceoncoalusingrenewables.Indiaisanothermassiveenergyuser,andIbelieveitwill

Thesimulationcenter:discoveringnewwaysofworking

In2015,weopenedtheHeeremaSimulationCenter(HSC)atourheadquartersinLeiden.Asthe world’s most advanced offshore simulator, we were excited about its potential to train personnel, run project simulations, and carry outhazardidentificationstudies.Yetafteritsfirst full year in operation, it has become clear that the HSC has far more to offer than we initiallyrealised.

Aswellassuccessfullycarryingoutthetasksitwasoriginallydesignedfor,thefocusoftheHSCisincreasinglyshiftingtowardsspeedingupdesigncyclesandimprovinginteractionbetweenclientsandoperators.Bystudyingproject simulations, experienced personnel can rapidly identify improvements and potential risks that can then be incorporated into the designprocessbyourengineers.Andbecausetheoperationalpartofthedesign,whichinvolvescreatingthestepsrequiredfortheoffshoremanual,isexpeditedengineerscanfocusonthestructuralanddynamicalintegritywhile operators and clients focus on the risks andoperability.Awin-winsituation.

Andthesesynergieshavealreadyledtoreal-worldimprovements.Forexample,theyhave helped us sharpen our offers and increase certaintiesduringthetenderprocess.AndtheyhaveledtoimprovementsinthedesignoftheSleipnir,enablingustofully-testourlatestvessel’soperatingstationbeforeitisbuilt.

We believe these developments illustrate that theHSC’struepotentialisonlyslowlybeingfullyrealised.Andwhoknowsinwhatexcitingand novel ways the HSC will be able to benefit the company and our clients in the years to come?


Installing a Flareboom at the Simulation Center

In 2014, Heerema and a number of other organizationsestablishedtheOurOceansChallenge(OOC)initiative.TheOOC’sgoalistoprovideanonlineco-creationplatformforentrepreneurs, offshore experts, and scientists to share and enrich ideas towards clean, healthy oceansandasustainableoffshoreindustry.

The OOC partner network consists of influentialcompanieswhostayaheadoffuturedevelopmentsbyhavingtheirin-houseexpertsworkalongsideentrepreneurialminds.Thisresults in scalable business solutions that use theoceanasasustainableresource.Notonlythroughfinancialsupport,butbysharingexpertiseandshowingcommitment.

Duringtheinitialround,whichranfrom2014to2015,twochallengeswerepostedontheonlineaccelerationplatform.Nearly463participantsgotinvolved,contributingatotalof88workingconcepts.Followinganintensiveselectionandmentoringprocessthe16mostpromisingconceptspresentedtheirbusinessplanstopotentialinvestorsatthefinalevent.Fromthis,fiveconceptswentforwardasstart-ups,rangingfromaninnovativewaveenergytechnologytoatechniquethatusesmacro-foulingfaunaasacoatingbarrier.

For the second round, which runs from 2016 to 2017, the OOC aims to further expand its networkwithintheindustry.Thiswillmakeitpossibletoengagemoreoffshoreexpertstosharetheirknowledgeandprovidefeedbackonnewideas,meaningmoresuccessfulstart-upsorbusinessimplementations.Thecurrenttimetableenvisageslaunchingstart-upsfromthecurrentcycleinthesummerof2017.Welookforwardtoprovidingresultsinournextsustainabilityreport.

OurOceansChallenge

Ambition 39

Key Performance Indicators


Re-installation of J-Lay Tower on the Balder

261,884 mTaverage CO2 Fleet & Flight

17%

242,054 mT2016 CO2

12%

0

0.2

0.4

0.6

0.8

1

1.2

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

HMC TRIR

Historic Safety trend

IMCA TRIRHMC LTFRIMCA LTFR

Fleet ( )&

Office ( )HMC 2016

1%

99%

23%

77%

malefemale

malefemale

Fleet Office

Key Performance Indicators

Thisgraphcomparesthecarbonfootprintcausedbyourfleetandflightactivitiestheaverageisbasedontheemmisionsof2013,2014and2015

Thisgraphshowsourgenderdiversityin2016

Baselineisdefinedastheaverageof2014,2015and2016

41

Sustainable supply chain Apilotprojectcalledthe“SustainableProcurementTool”hasbeendevelopedincooperationwithMVONetherlands,seepage19.

OurOceansChallenge Anewcyclestartedin2016andisinfullswingduringthewritingofthisreport.Over30partnersfromindustry,universities,knowledgeinstitutesandstart-upacceleratorshavejoinedtheOOCpartnership.Seemoreonpage39.

PolyMore Afteraninitialpilot,supportfromHMCinAngolatothePolymoreprojecthashalted.TheBetterFuture Factory, the company behind the Polymore project, has continued is endeavours with a newprojectcalledSquarryandtheyaresettingupfactoriesaroundtheworld.

Reducingnoisetoprotectwildlife DuringtheVejaMateproject,2bubblescreenswereusedresultinginanoisereductionofatleast5dB,seepage15.Newwaysofreducingnoisearecontinuouslybeingdeveloped.

Useofultra-lowSulfurfuel Itisnowstandardforprocurementtospecifylowsulphuruponprocurement.Regrettably,insomeregionsoftheworlditisnotyetpossibletobunkerlowsulphurfuelbecauseitisnotavailablebutitremainsapointoffocus.

Internal awareness Sustainabilityworkshopsanddepartmentalpresentationshavebeencommonplace.Inaddition,re-invigoratingthesustainabilitycommunityhasbroughttogetheragroupofenthusiasticpeoplereadytosupportsustainabilityprojects.Raisingawarenessisanongoingmatterandhasbeenincorporatedinthemanagementagendafor2017.

Hybrid power system study Thialf The hybrid Thialf feasibility study has been completed and further research in cooperation with possiblevendorsofthesystemarebeinginvestigated,seepage29.

LEDlightingonboard ThestarboardcraneofthebalderhasbeenoutfittedwithLEDlightingandtheportsidecranewillfollowin2017,seepage16.

Project sustainability workshops Althoughnumerousprojectsworkshopshavebeenorganizedthathaveidentifiedseveralofourfootprints,asinglechecklistforeachprojecthasnotyetbeencompleted.Thisisincorporatedinthegoalsfornextyear.

Sustainable employability FocusisonpreventionbyimprovingthemedicalexaminationandintroducingtheWorkabilityIndexQuestionnaire.Otherthemesarestillbeingimplementedthisyear.

Achievements 2016


Primary Objectives

Definethenextstepsinsustainability Alreadymuchhasbeenaccomplishedinthelastfewyears.Thequestionthatremainsis,howwillweimproveintheyearstocome?Thatiswhyaroadmaphasbeendevisedbyawidevarietyofemployees,bothintopmanagementandatengineeringlevel,tocreateaframeworkinwhichourambitioncanbecommunicated.Thisroadmapwillberolledoutin2017andformthebasisofdiscussioninwhichtoengageouremployees.

ImproveEmissionsReporting Ourgoalistoobtainaclear,auditableoverviewonemissionsbymeansofimproveddatamanagementandreporting.Thismeansre-examineouremissionsfactorsandimprovingourcurrentreporting.Improvementsaremainlydonebystreamliningthecurrentdatainputandautomatingtheprocessing.Inaddition,wewillinvestigatethefeasibilityofcertifyingourselvesforaGRIcertificate.

ProposeHSEKPItop-Sheetbasedonleadingindicatorsandlaggingindicators

Itisparamounttoprovideinsightinourwayofworkingbymeasuringourkeyperformanceindicators.Inthecurrentframeworkhowever,thesearenotthemostinsightfulnumbersorfiguresthatshowhowourdecisionsimpactourfootprint.CreatingnewKPIs,basedonsimpleandeffectivereporting,willincreaseourunderstandingofcurrenttrends.ItwillallowustobetterdirectourpoliciesonHSEstatisticsandsteerourvisiontowardsasustainablecompany.

Improve sustainability awareness to support our ambition

Ourmostpressingmatteristoensureallemployees,officeandfleet,areawareofourcommitmenttosustainabilityandareawareonhowtheycancontribute.Eventhoughmany,peopleareadamantonbeing“moresustainable”,itisnotclearwhattheycandotohelp.Communicatingourroadmapforsustainability(seebelow)andestablishingthesustainabilitycommunity

Roll-outSustainableprojectsinourCompany WiththeadventofourSustainabilityRoadmap,projectscaneasilybeidentifiedandperformedbymembersofthesustainabilitycommunityorotherenthusiasticemployees.Itisenvisionedtoexecuteprojectsaslean,back-to-basicsprojectsintheformof“KaizenEvents”.Theseareprojectswith a duration of one or two days in which projects on the sustainability roadmap can be executedinamosteffectiveandefficientmannerinwhicheveryonecanparticipate.Impactisthereforecreatedinstantlyoverthecourseofseveraldays.

Secondary Objectives

ParticipatefullyinthesecondcycleofOurOceansChallengeGrowthesustainabilitycommunityintoalively,activecommunityopentoallwillingtocontributetowardsasustainablecompanyRevise our mobility plan of employees to lower environmental footprintFinish an environmental checklist for future projectsPerform a feasibility study for shore power in the CalandkanaalFinish the Sustainable Procurement Tool project and evaluateEnsuretheHermoddecommissioningisperformedinasustainablemanner,properlyweighingpeopleplanetandprofit.

Achievements & Objectives

Objectives 2017

43

Indicators Baseline 2016 delta

Indicators HMC HSE reports

Lost Time Incident Rate (LTIR) 0.07 0.04 -42%

Accident Frequency Rate (AFR) 0.50 0.63 27%

Totalworkinghours 9,358,982 10,409,929 11%

HSE reportsA)Fatalities 0 0

B)Permanent total disabilities 0 0

C)Lost workday Cases 3 2

Total Lost Time Injuries (A+B+C) 3 2

D)Restricted Work Cases (RWC) 7 12

E)Medical Treatment Cases (MTC) 13 19

Total Reportable Cases (A+B+C+D+E) 23 33

First Aid Cases (FAC) 40 35

Near Misses (NMI) Low Risk 18 34

NearMisses(NMI)HighPotential 50 15

Performance Indicators

LTIR = LTI x 200.000/TWH, AFR = TRC x 200.000/TWH

Baseline is average of 2013, 2014, 2015

21%

17%

17%

Immediate Cause, Substandard acts

45%Improper placement for taskImproper position for taskFailure to secure

17%

18%

17%

Immediate Cause, Substandard Conditions

48%Inadequate equipment/materialsExcessive ExposuresDefective Equipment/materials

48%

30%

8%

Root Causes, Main Personal Factors14%

Lack of KnowledgeLack of SkillImproper Motivation

22%

14%

13%

Root Causes, Main Job Factors

51%

Inadequate EquipmentInadequate ChangeInadequate Leadership

3%1%

2%9%

20%66%

9%9%8%8%

11%56%

800 600 400 200 0

<55-10

10-1515-2020-25>25

200 400 600 800 1000 1200 14000

Years HMC Experience

2006 2016

ThisgraphshowsapyramiddepictingtheamountofyearspeopleareemployedbyHeerema.In2006,almost1inevery3employeeshadmorethan15yearsofexperience.In 2016, about 1 in every 20 employees hasmore than 15 years of experience. Theamountofpeoplewithmorethan15yearsofexperiencewithinHMCisalmosthalfofwhatitwastenyearsago.Combinedwiththemainpersonalrootcausesofincidents(lackofknowledgeandskill)thisshowsimprovedknowledgesharing initiativesareimportantfortheyearstocome.


Performance Indicators

Indicators Baseline 2016 delta

Social impact indicatorsOrientationTrainingIIFincl.refresher(ownpersonnel) 806 697 -14%

OrientationTrainingIIFincl.refresher(subcontractors) 1024 172 -83%

TraintheTrainerorientationincl.refresher* 47 10 -79%

SafetyDialogueSessions** 188

Traininghourspersonnelexcl.fleet(alloffices) 29187 47874 64%

NumberofEmployeesincl.fleet(totalheadsHMC) 2167 2341 8%

Employee turnover – Fleet 2.9% 1.6% -44%

Employee turnover – Office (NL) 3.6% 4.4% 21%

Environmental impact indicatorsEnvironmental fines 0 0 -

HeeremaFleet&OfficeFlightMileage(km) 207M 159M -23%

HeeremaFleet&OfficeflightCO2emissions(mT) 43,313 29,262 -32%

Contained spills 11 3 -73%

Uncontained spills 11 6 -45%

Total recorded oil spill incidents 22 9 -59%

Amount of oil spilled uncontained (Liters) 2,095 1,833 -12%

Transit & Work per VesselConsumption (mT) CO2 emission (mT) NOx emission (mT) SOx emission (mT)

Baseline* 2016 Baseline* 2016 Baseline* 2016 Baseline* 2016

Aegir 13,572 13,429 43,510 43,053 516 510 21 10

Balder 15,398 13,273 49,367 42,553 828 713 18 26

Hermod 11,111 9,188 35,623 29,457 479 396 20 17

Thialf 23,561 19,666 75,535 63,049 1,387 1,158 44 30

Bylgia 5,489 6,288 17,596 20,159 279 319 12 26

Kolga 5,570 4,529 17,857 14,520 283 230 12 9

Total 68,176 66,373 218,571 212,792 3,486 3,326 115 117

1. CO2: fuel consumption x emission factor of 3.206

2. NOx: measured vessel specific figures

3. SOx: low sulfur < 0.1%

*The Baseline is determined of the average of the 2013, 2014, 2015, except for Aegir Bygia and Kolga where insufficient data is available for 2013. Note that fuel consumption is heavily dependent on projects executed.

*(own personnel & subcontractors)

** Safety dialogue sessions are open dialogues on safety with fleet and office personel

242,054 mTCO2 - 2016

27%

Thialf

18%

Balder

Carbon Footprint Fleet & Flight 201615%

Aegir

15%

Flight

13%

Hermod

6%

Kolga

6%

Bylgia

21%

17%

17%

Immediate Cause, Substandard acts

45%Improper placement for taskImproper position for taskFailure to secure

17%

18%

17%

Immediate Cause, Substandard Conditions

48%Inadequate equipment/materialsExcessive ExposuresDefective Equipment/materials

48%

30%

8%

Root Causes, Main Personal Factors14%

Lack of KnowledgeLack of SkillImproper Motivation

22%

14%

13%

Root Causes, Main Job Factors

51%

Inadequate EquipmentInadequate ChangeInadequate Leadership

3%1%

2%9%

20%66%

9%9%8%8%

11%56%

800 600 400 200 0

<55-10

10-1515-2020-25>25

200 400 600 800 1000 1200 14000

Years HMC Experience

2006 2016

Distributionofcarbonfootprintforfleetandflightin2016

45

QASHE policies

HMC regulation and compliance

• ISO 9001• ISO 14001• OHSAS 18001• ISM • MARPOL• SOLAS• Maritime Labour Convention

Security

HMCmaintainsaSecurityManagementSystemcertifiedtotheInternationalShipandPortFacilitySecurityCode(ISPSCode).

HMC code of conduct

We conduct our business with fairness, honesty,integrityandrespectfortheinterestsof our stakeholders in a wide variety of social, politicalandeconomicenvironments.HMCsupports the ten principles of the United NationsGlobalCompact(www.unglobalcompact.org)withrespecttohumanrights,laborrights,theprotectionoftheenvironmentandanticorruption.

SHE management system

We actively strive to provide and maintain a SHEmanagementsysteminlinewithlegalrequirements and industry standards and certifiedtoISO14001,OHSAS18001,theInternationalManagementCodefortheSafeOperation of Ships and for Pollution Prevention (ISM Code) and the Maritime Labour Convention.

Incident and Injury Free program

OurIncidentandInjuryFree(IIF)programisaimedatimprovingthesafetyculturewithinthecompany.ItembodiesourbeliefinandcommitmenttomaintaininganIncidentandInjury Free workplace at all times and the mindsetweaimtoachieve.IIFtrainingisprovided to all HMC personnel and subcontractorsworkingonourvessels,dependingonhowthesubcontractor’ssafetypracticescanaffectHMC’sIIFperformance.

Stop the work policy

Anyone who feels that his/her or anyone else’s workcannotbeorisnotbeingdonesafelyhastheauthorityandobligationtostoptheworkandinitiateactiontorectifyunsafeconditions.

Ca

re, Respect & Shar

e

Job Safety

Controlofworkismanagedthroughtheimplementation of a robust system of competencymanagement,hazardidentificationandriskassessment,withtheaimofpreventingincidents.Workplaceassessmentandjobsafety analysis are the essential elements in the permit-to-worksystem.TheHMCBehavior-BasedSafetyManagementSystem@EASEfurther improves our health, safety and environmentperformance.


QASHE policies & Glossary

Glossary of terms

BREEAMNL-BuildingResearchEstablishment Environmental Assessment MethodDP–DynamicPositioningEAL – Environmentally Acceptable LubricantsHAZID–HazardIdentificationIMO–InternationalMaritimeOrganizationMGO – Marine Gas OilROV – Remotely Operated VehicleWAI – Work Ability Index (questionnaire)

References

MapofWorld-SingleColorbyFreeVectorMaps.com

Tensie Whelan and Carly Fink, The Comprehensive Business Case for Sustainability, Harvard Business Review, October 21 2016

quotep35:-Source:http://definingcreativity.com/shells-looming-kodak-moment/

Glossary

Thialf at the Murchison Platform

47

www.heerema.com

Heerema Marine Contractors Nederland SEVondellaan 472332 AA LeidenThe Netherlands

Mailing Address:Heerema Marine Contractors Nederland SEP.O.Box93212300 PH LeidenThe Netherlands

Tel.: +31[0]715799000Email:[email protected]

May 2017

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