36 YINSON HOLDINGS BERHAD Yinson adopts the double materiality principle and a biennial cycle for materiality assessment. The double materiality assessment deepens our insight into the ways Yinson’s operations affect both society and the environment (impact materiality), as well as how social and environmental challenges can influence Yinson’s financial outcomes (financial materiality). By considering both perspectives, we are better equipped to identify potential risks, opportunities and impacts. This comprehensive approach supports more informed decision-making and enhances our ability to manage risk effectively, strengthening our capacity for sustainable growth, ensuring our strategies are resilient and future-focused. MATERIAL MATTERS Double materiality assessment process Identify material matters Stakeholder engagement Materiality impact analysis Validation and strategic integration Yinson’s materiality assessment began with a comprehensive list of sustainability topics, refined through desktop analysis covering sector, geographic and valuechain activities. By benchmarking against major reporting frameworks and previous assessments, and considering industry and investor priorities, we streamlined the list to 11 material topics. We engaged with internal and external stakeholders through interviews and survey questionnaires. These engagements provided valuable insights into stakeholder perspectives and expectations and helped us identify emerging sustainability issues. The quantitative and qualitative input gathered informed the assessment of impacts, risks and opportunities. We evaluated both the financial and impact materiality of each topic, incorporating desktop research and Enterprise Risk Management inputs. The BCG Salience Model was applied to rank stakeholder inputs. After consolidating all interview and survey responses, we computed a consolidated score for each material topic, which was then used to develop the materiality matrix. The materiality matrix and topics were discussed internally with key stakeholders and Senior Management to confirm relevance and alignment with Yinson’s strategic direction. Updated materiality outcomes were then presented to the Board and Senior Management for review and approval. These validated topics will guide the integration of material considerations into strategic planning, risk management, and sustainability reporting. VALUE CREATION AT YINSON Key outcomes Refined and streamlined material topics from 14 to 11. Mapped and aligned material matters with enterprise risks. Enhanced clarity to better reflect critical areas and stakeholder priorities. Strengthened financial materiality assessment approach. Strengthened alignment between sustainability reporting, risk management and business strategy.
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