57 INTEGRATED ANNUAL REPORT 2026 VALUE CREATION AT YINSON | TRADE-OFFS Trade-off in practice Long-term value creation impact Trade-offs management • Allocating capital to digital platforms or systems upgrades with longer payback periods. • Accepting near-term cost increases to enable innovation and data-driven decision-making capabilities to mature. • Deferment of other discretionary expenditure outside core capabilitybuilding priorities. • Improves operational efficiency and decision-making through stronger systems, data and digital capabilities. • Strengthens cybersecurity, digital resilience, knowledge management and reporting quality over time. • Supports business scalability and competitive differentiation across the asset and business lifecycle. • Prioritise investments that improve operational performance, risk visibility and cybersecurity. • Strengthen governance through demand management forums and digital steering, ensuring innovation within strong control frameworks. • Periodic initiative review, optimising for long-term value. Organisational capability building vs Financial Capital growth vs IC FC Group strategies Material matters Building efficiency through digitalisation and AI, pg 21; Building the foundation for operational intelligence, pg 74 BP GE DR EB SV PG DM • Higher upfront costs for loweremissions solutions and enhanced environmental disclosure. • Longer project development timelines. • Reduced short-term margins to position the Group for lower long-term environmental and regulatory risk. • Strengthens resilience against transition, environmental and regulatory risks over time. • Strengthens confidence among customers, regulators and financiers through credible transition and environmental management. • Continued relevance and resilience as energy systems evolve and lowercarbon solutions scale up. • Investments in emissions reduction, energy efficiency, and environmental management. • Climate governance, scenario analysis, internal carbon pricing and transition planning to inform capital allocation and pacing. • Balance transition investments with capital discipline and market realities aligned with strategic direction. Transition and environmental investments vs Financial Capital growth vs NC FC Group strategies Material matters Energy addition is reshaping the global energy landscape, pg 17; Our sustainability positioning, pg 33 CJ ES BM BP OP EB SV PG • Accepting longer lead times for project mobilisation to ensure alignment, trust and regulatory confidence. • Increased costs related to engagement and collaboration. • Shorter-term operational inefficiencies. • Protects social licence to operate, project continuity and regulatory confidence. • Reduces the risk of grievances, disruptions, supplier issues and reputational harm. • Strengthens local participation, long-term partnerships and supply chain resilience. • Maintain structured engagement, communication and grievance channels with all stakeholders. • Conduct due diligence, ESG screening and supplier engagement to identify and address environmental or social risks. • Support local sourcing and capabilitybuilding where material to project continuity and shared value creation. Stakeholder engagement and trust vs operational efficiency vs SC MC Group strategies Material matters HR CE GE SM EB PG DM Approach to stakeholder engagement, pg 46 • Increased short-term costs for training, development and well-being investments. • Productivity and efficiency benefits may only be evident over a longer horizon. • Moderating pace of achieving some near-term business objectives to build leadership depth and organisational capability. • Strengthens attraction, retention and development of critical talent in a specialised and transitioning industry. • Supports safer operations, stronger execution and leadership continuity. • Builds organisational resilience and future-readiness during growth, transformation and business change. • Invest in skills, leadership development, succession planning, inclusion and well-being in material areas. • Invest in structured HR systems, competency frameworks, performance management and fair, transparent rewards practices. • Uphold HLR commitments and inclusive employment practices. Talent development vs Financial Capital growth vs HC FC Group strategies Material matters HS HR TI EB PG DM Empowering our people to succeed, pg 20
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