For Saipem, Local Content means the creation of employment and the development of local skills and capabilities, the transfer of know-how, collaboration with local suppliers and subcontractors, and strengthening local entrepreneurship through its business operations. Maximising local content is one of the cornerstones of Saipem business philosophy in all markets, thus creating socio-economic value within the host communities. This approach helps to develop a durable and sustainable ‘win-win’ relationship with all local stakeholders, helping to reduce costs and risks associated with projects and improving local communities’ perception of the Company, creating the condition for a climate of mutual trust, thus guaranteeing the Company’s ‘licence to operate’. On the other hand, Saipem’s Local Content approach generates positive effects within local communities, contributing to the social stability and well-being of the local population.
Measuring the socio-economic footprint generated by Saipem’s local content strategy
Saipem has always applied a comprehensive Local Content approach in all the countries in which it operates, aware that this is key to the success of its activities.
Considerable investment in training, know-how transfer, supplier and subcontractor scouting and active cooperation is a fundamental Saipem strategy in countries such as Nigeria, Angola, Congo, Algeria, Peru, Brazil, Venezuela, Russia, Kazakhstan and Indonesia. Traditional methods used to evaluate Local Content in quantitative terms, which are also applied in the legal systems of several countries, calculate only the direct components of the overall impact. These are the effects directly connected to Saipem’s operations (i.e. direct employment, direct purchasing from local suppliers and taxes paid to local governments).
These methods underestimate the overall real impact and the potential benefits of Local Content strategies. Indeed, several actors within the Oil & Gas industry (and related sectors) have failed in their attempts to define a consistent methodology to calculate Local Content.
Conversely, the Saipem Externalities Local Content Evaluation (SELCE) Model allows the Company to calculate the comprehensive footprint of its operations in a certain area and to evaluate the effectiveness of Local Content strategies.
SELCE MODEL allows to measure the socio-economic footprint generated by Saipem’s Local Content strategy.
Further information about Saipem’s Local Content Strategy can be found in the dedicated leaflet “Local Content for Sustainable Development”.