77 INTEGRATED ANNUAL REPORT 2025 SUSTAINABILITY REVIEW | BUILDING ENVIRONMENTAL AND CLIMATE RESILIENCE Our three-pronged climate strategy Yinson continues to operationalise our climate strategy through a three-pronged approach: carbon reduction, carbon removal, and carbon compensation. YP Conventional energy infrastructure • Mature business model. • Strong market outlook, with stable cash flows. • Derived from finite resource. • Limited competition. Positioning of Yinson’s businesses in the energy infrastructure value chain YR Renewable energy infrastructure • Proven technology and business model. • Solid pipeline maturing towards construction and operations. • Derived from infinite resource, ESG-positive. • Higher competition. YGT Infrastructure, innovation and solutions for the electrification of mobility • Building industries of the future in a region that has significant opportunities. • New and developing business model. • ESG-positive. Empower communities Drive economic growth Protect the environment Reduce emissions across Scopes 1, 2, and 3 by optimising internal processes and operations, while adopting innovative emissions-reducing technologies and utilising renewable energy where possible. Carbon reduction Explore various nature-based (such as afforestation and reforestation) and technology-based (such as Direct Air Capture) carbon removal solutions to remove atmospheric carbon dioxide for any residual emissions. Carbon removal Utilise carbon compensation mechanisms, including high-integrity and high-quality carbon credits, to offset residual Scope 1 and 2 emissions after reduction efforts. Carbon compensation Climate risk and GHG emissions management are material concerns to our stakeholders, in particular financiers, regulatory bodies, investors, shareholders, local communities and suppliers. Yinson Climate Roadmap 2024 reflects our current operating environments, prevailing market conditions and trends, over short-, medium- and long-term time horizons. The Roadmap communicates a more comprehensive and accurate portrayal of the pathways to carbon neutrality and net zero. This helps to facilitate fruitful and productive stakeholder engagements, ensuring transparency and accountability. Integrated climate risk management Climate-related risks are integrated as part of our existing Enterprise Risk Management (“ERM”) processes. We adopt a structured process to identify material climate-related risks and opportunities as part of our broader risk management process. Each identified climate-related risk and opportunity is assigned a unique risk identification number and documented in a dedicated register. The register functions as a feedback tool for the risk management process by capturing medium- to long-term climate-related risks that may be overlooked in the short-term. We deploy a double materiality approach, assessing both how climate change affects our businesses and how our operations impact the climate. This dual perspective ensures a comprehensive understanding of both external risks posed by climate change and the internal responsibilities of corporate actions, thereby enhancing overall risk transparency and strategic decision-making. In addition, we adopt the recommendation of TCFD to address climate-related risks and opportunities by evaluating our business portfolio against future climate scenarios. The assessment results are then integrated back into our ERM framework for appropriate risk response actions, taking into consideration risk levels and priorities highlighted within the different scenarios. Scenario analysis Yinson employs scenario analysis to better understand climate-related matters and navigate future trajectories of transition and physical parameters. While each adopted scenario carries a certain degree of uncertainty and assumptions, these scenarios offer valuable references for signals and indicators of the plausible trend in the development of the parameters related to our businesses.
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