The maximisation of Local Content – in terms of employment and supplies – is one of the main features of Saipem business philosophy.
The Local Content strategy provides considerable social benefits to the host country, in terms of investments, employment, development of subcontractors and other factors. From Saipem perspective, maximising Local Content means also developing continuous relationships with host countries and local clients and suppliers. This has often beneficial effects on project costs and, most importantly, diminishes the overall risk profile of the project in question.
Another aspect of availing of local employment is enriching the diversity of Saipem workforce, providing young talents from around the world with the opportunity to grow professionally within our Company’s projects at home and overseas.
Saipem invests substantially in local facilities, ranging from engineering centres and support yards for maintenance and storage of construction equipment to fully-fledged fabrication yards, where sections of major projects are assembled for onshore field construction or offshore installation. Following the gradual expansion of existing fabrication facilities in Nigeria, Angola, the UAE, Kazakhstan and Congo, and well established engineering and project management centres in Italy, France, the UK, Norway, Romania, Croatia and India, recent years have seen the vigorous development of fabrication centres in Saudi Arabia and Indonesia as well as engineering and project management centres in Algeria, the UAE and most recently Canada.
SELCE - Model and cases
Measuring the real benefits of a Local Content strategy is the key to demonstrate a sustainable business approach and improve stakeholder relationships at local level.
SELCE (Saipem Externalities Local Content Evaluation) Model has been developed by Saipem to achieve this goal; its output is a quantitative evaluation in monetary terms of socio-economic effects produced by the local content strategy.
The tool aims to analyse and measure direct, indirect and induced socio-economic impacts – the “externalities” – generated by Saipem Operating Companies in the socio-economic context of the countries in which they are based.
Three main categories of impact have been identified and quantified:
1. The economic value created, in terms of locally sourced purchases, taxes paid to local authorities and employees’ salaries.
2. Employment created (direct, indirect and induced).
3. Human capital development, including increased life-time earning expectancy due to the training received by Saipem.
For every single category, the total impact (given by the sum of direct, indirect and induced impacts) and the multiplier factor (i.e. numbers providing the magnitude of an impact or of a process) have been calculated.
The methodology has been applied to different areas where Saipem operates, for example in Angola, Peru, Kazakhstan, Nigeria, Algeria, and Indonesia. Other areas will soon be involved.
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