Resource-rich countries in the Middle East and North Africa, particularly in the Gulf countries, are increasingly focusing on getting more out of their own resources. In order to gain more from their raw materials, some countries are introducing local content requirements into their laws, regulations, guidelines, sector contracts and bidding procedures. Whether it’s required by law or not in the many countries we operate, our Group has made local content another cornerstone of its sustainability strategy with positive business impacts. In fact, we believe local content is always a net positive for our business, as it increases the chances to win tenders, improving project reliability and quality through proximity to local suppliers, optimizing costs for certain locally procured goods and services, building trust with the local market and reducing risks associated with projects. On the other hand, by being a global company with a strong homegrown presence wherever it operates, Maire Tecnimont contributes to the socioeconomic well-being of local areas by creating local jobs, generating business for local suppliers, developing local skills and capacities, strengthening local entrepreneurship and transferring know-how and technologies to local partners. Through a greater integration with local communities, we can make a lasting and sustainable contribution to the economic and social development of all the local areas we are in. With this in mind, we have launched a multi-year strategic “In-Country Value” (ICV) project involving all the regions we operate in, along the lines described in the following chart.
Evaluating local content in quantitative terms is important to estimate the positive impact of our activities on local economies and communities. That’s why we have developed a model that will allow us to quantify our local footprint in terms of development, employment and human capital growth.
By applying this model to our 20 most representative projects worldwide, for 2019 the total value of locally purchased goods and services, labour and training was approximately 5 billion euros, corresponding to 52% of project costs.
MAIRE TECNIMONT IN-COUNTRY VALUE APPROACH
Creation of opportunities for locals and development of local workforce
Training and Education
Contribution to labor-market vocational training and support for local universities
Contribution to supply-chain development for product and services in line with International standards
Procurement of goods, services and technologies from local suppliers and subcontractors
Properties and exports
Owning of fixed assets in the host country and local contribution through export revenues
Minimization of air, land and water pollution, waste reduction and biodiversity preservation
Local Community benefits
Contribution to local communities through health, education, safety, site rehabilitation and economic sustainability
Stakeholder Engagement and Communication
Understanding of stakeholder concerns, effective communication and creation of aligned vision
Local contribution through tax and equity obligations in a transparent manner, preventing corruption