106 YINSON HOLDINGS BERHAD SUSTAINABILITY REVIEW During the year in review, 100% of our pre-qualified suppliers underwent ESG screening via the VRP’s ESG module. Yinson conducts site audits of Tier 1 suppliers to ensure compliance with ESG requirements. Five audits have been completed since FY2024. No audits took place in FY2026 as our fleets transitioned from construction phase into operations, resulting in less construction activities. These audits help identify and address environmental, social and human rights risks and are integral to our supplier risk management. Strengthening our local supply chains Yinson prioritises the engagement of local suppliers in our areas of operation, in line with our purpose of empowering communities and supporting inclusive economic growth. Strong local supply chains enhance supply resilience, reduce exposure to cross-border disruptions and create shared value for both Yinson and the communities in which we operate. In FY2026, 92% of quotations requested for our offshore operations were sourced from local suppliers. This led to 81% of procurement spending being directed to local suppliers. Local content performance, pg 71 Supply chain engagement initiatives We engage our key suppliers through a range of structured initiatives, including supplier relationship meetings, business review sessions, strategic events and supplier town halls. These platforms enable open dialogue, knowledge sharing and collaboration, while supporting mutual understanding of operational expectations and emerging risks. ESG compliance, sustainability processes and ABAC policy implementation are regularly discussed as part of these engagements. We are committed to engaging 100% of our core suppliers through supplier events, trainings or workshops by 2030. In FY2026, we achieved a 100% engagement rate with our top 10 suppliers by highest spending. We remain dedicated to strengthening our supply chain, continuously exploring new opportunities to create additional value for both Yinson and our suppliers. Yinson Renewables supply chain procedures Yinson Renewables established its Direct Procurement Procedure, reflecting its commitment to conducting supply chain practices in an ethical, transparent and responsible manner. Yinson Renewables is committed to working only with reputable and professional suppliers, with due diligence conducted as a mandatory requirement for all suppliers. The scope of due diligence varies according to the supplier’s tier level, and suppliers that have completed the process are maintained within the VRP. ESG considerations are also embedded within the pre-qualification questionnaires for Tier 1 suppliers. Supplier base and selection process Yinson works with a broad and diverse supplier base including brokers, consultants, contractors, distributors, manufacturers and subcontractors across 20 countries. In FY2026, we engaged 1,425 active suppliers through our VRP. Our supplier selection process is facilitated through the VRP, where prospective suppliers are required to submit company information for registration. Based on an initial risk assessment, suppliers are categorised as either ‘registered’ or ‘pre-qualified’. Suppliers undergo baseline compliance checks and are required to acknowledge Yinson’s COBE and ABAC policies. Pre-qualified suppliers are subject to more comprehensive screenings, covering HSSEQ management and performance, adverse media screening, watchlists, government records, financial management and sustainability compliance. Additional assessments include ISO certifications, insurance coverage, ABAC compliance, country-specific registration requirements, remote support questionnaires and clarifications relating to safety, compliance, insurance and sustainability. Suppliers and contractors that comply with Yinson’s health and safety requirements is further reinforced through contractual provisions. The VRP itself is subject to regular internal and external audits, and we continue to enhance the platform to strengthen supplier engagement and improve the efficiency of onboarding and approval processes. Environmental and social risk assessment Pre-qualified suppliers are required to complete the VRP’s ESG module, which screens suppliers against criteria aligned with recognised international frameworks and standards, including GRI, International Organization for Standardization, Value Reporting Foundation, Sustainability Accounting Standards Board (SASB), SDGs and CDP. Screening criteria include third-party sanctions, negative media monitoring, Health, Safety, Environment and Quality risk assessments, employee training, adequacy of health and safety, management systems, fair labour practices, safety culture and pollution prevention. Beyond mitigating risks associated with issues such as environmental degradation or human rights violations, these assessments allow us to identify gaps within our supply chain and take proactive steps to address them. ESG non-compliances identified through the VRP are escalated to the Sustainability Department, which works with suppliers to address and resolve issues. ABAC-related non-compliances are escalated to the Compliance Team, which conducts reconciliation exercises with affected suppliers to support completion of the assessment process. Where necessary, follow-up actions may include enhanced monitoring, corrective measures or reassessment of supplier status.
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