28 YINSON HOLDINGS BERHAD LEADERSHIP MESSAGES The landscape for sustainability efforts has grown increasingly complex in the past year. Despite fluctuating external rhetoric, Yinson continues to recognise ESG as a strategic imperative for long-term resilience and profitability. Recent shifts that have emerged more strongly, such as the integration of ESG into core business strategies, enhanced sustainability reporting and a heightened focus on supply chain transparency, are practices that we began embedding since formally placing sustainability at the heart of our business strategy in 2018. This position has allowed us to leverage our corporate voice to shape the ESG landscape in our industry. Through our leadership positions in the ASEAN Business Advisory Council Malaysia’s (“ASEAN-BAC Malaysia“) ASEAN Common Carbon Market Initiative, the ASEAN Alliance on Carbon Markets (AACM), and the MCMA, Yinson provides a strong private sector voice towards a unified, transparent, and efficient carbon market. We believe that carbon prices must Fostering a vibrant carbon market ecosystem, pg 19; Climate Change & Carbon Management, pg 75. Real change requires tangible investments, not just promises. As part of our 30 by 30 targets, we committed to having at least 30% of equity in non-oil-based FPSO activities by 2030. We have invested RM627 million into Yinson Renewables and Yinson GreenTech up to FY2025, which represents about 8% of the Group’s total equity. The continued funding borne out of this commitment, bolstered by fresh capital from our new strategic investors, are poised to accelerate activities and value from our renewables and green technologies businesses. be set at the right level for an energy transition. Preparing for the eventuality of carbon tax, we started piloting an internal carbon price for Yinson Production two years ago, which has helped us consider carbon costs in our decision-making processes while taking proactive climate action. Yinson Production aims to pursue strategic opportunities that enhance industry value, leverage our deep expertise, strong network, and established presence in offshore energy production. The offshore energy industry is actively seeking solutions to decarbonise while keeping up production that is essential for energy security. Yinson Production is exploring solutions within the carbon value chain, aligning with both our climate ambitions and the industry’s sustainability ambitions. From initial seed investments in low-carbon technologies and the carbon value chain, we have now embarked into developing the entire value chain. In February 2025, we acquired Stella Maris CCS AS (“Stella Maris”), which also marked the launch of Yinson Production’s Low Carbon Ventures business. Stella Maris is developing a full carbon capture and storage (”CCS“) value chain and holds 40% of the Havstjerne Reservoir on the Norwegian Continental Shelf. Developed in partnership with Harbour Energy, the Havstjerne CO2 injection and storage project is a cornerstone of Stella Maris’ activities, with its technical feasibility validated by extensive seismic data and reservoir studies. The EU’s Innovation Fund has awarded the project a grant of up to EUR 225 million − the largest EU grant for a CCS project. Est 2030 • Development of full-scale CCS value chain. 2025 • Acquired Stella Maris, marking the start of Yinson Production’s Low Carbon Ventures business. • April − Started drilling an appraisal well at the Havstjerne Reservoir, which is expected to be completed in June 2025. Est 2029 • Development of first DAC plant in Øygarden, Norway, which is proposed to share CO2 transport and storage facilities with the Northern Lights Onshore CO2 Receiving Terminal. 2021 • Launched Climate Goals and Zero Emissions FPSO Concept, which outlined our commitment to contributing to the development of the carbon value chain. 2023 • Invested in Ionada PLC for its innovative post-combustion carbon capture technology. • Invested in Norwegian Direct Air Capture (”DAC“) project development company, Carbon Removal AS. • Designed world’s first offshore postcombustion carbon capture plant onboard the Agogo FPSO, on track to be operational in 2025. 2024 • Awarded technology development grant of NOK 26.3 million by Norwegian government agency, Enova SF, to perform preliminary studies on the DAC plant. Exploring synergistic opportunities in low carbon ventures
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