84 YINSON HOLDINGS BERHAD MANAGEMENT APPROACH Yinson integrates climate-related considerations into its governance, strategy and enterprise risk management frameworks to identify, assess and manage climate-related risks and opportunities across the short-, medium- and long-term. As FPSO operations account for approximately 99% of the Group’s GHG emissions, our climate strategy prioritises emissions management across our FPSO fleet, while enhancing operational efficiency, asset resilience and environmental performance in line with our long-term transition objectives. Yinson’s transition approach recognises the interdependencies between environmental sustainability, energy security and energy equity. Renewable energy deployment is increasing, but oil & gas continues to feature in many energy transition scenarios through 2050, including some aligned with netzero. Demand is generally projected to fall, with residual use concentrated in hard‑to‑abate sectors. Actual outcomes will depend on the pace of decarbonisation, policy developments and evolving energy security considerations. Yinson supports the energy transition by strengthening essential energy infrastructure while investing in renewables and green technologies to facilitate a gradual shift towards a lower-carbon economy. By tailoring our strategies to the specific resource, infrastructure and policy contexts in which we operate, we aim to responsibly manage the energy trilemma while contributing to an inclusive, resilient and sustainable energy system. Climate-related governance Yinson maintains a structured governance framework to ensure effective oversight and management of climate-related matters, including associated risks and opportunities. The Board provides oversight and strategic guidance on climate-related issues, including the Group’s climate strategy, transition approach and progress against key metrics and targets. Management-level responsibility sits with the Management & Sustainability Committee (“MSC”), which oversees the implementation of climate-related initiatives, Yinson’s climate strategy We operationalise our climate goals through a three-pronged approach focused on carbon reduction, removal and compensation. 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 atmospheric carbon removal solutions (such as direct air capture) for residual emissions across Yinson's footprint. Carbon removal Utilise carbon compensation mechanisms, including highintegrity and high-quality carbon credits, to offset residual Scope 1 and 2 emissions after reduction efforts. Carbon compensation monitors performance against material indicators, and ensures that climate-related risks are managed within defined tolerance levels. Climate considerations are integrated into the Group’s broader risk management and decision-making processes. Scan to read our Climate Report. Integrate and adopt climate considerations for business resiliency and support the global energy shift towards an equitable and inclusive low-carbon economy through technology-driven optimisation and low-carbon solutions. CJ Climate Action & Just Transition Key highlights • Scope 1 emissions: 303.7 tCO2e • Scope 2 emissions: 386.3 tCO₂e • Scope 3 emissions: 2,710,098.3 tCO2e 26.7 kg CO2e/BOE CARBON INTENSITY OF OUR FPSO OPERATIONS 425.1 kg CO2e/MWh CARBON INTENSITY OF OUR GROUP OPERATIONS On track CARBON COMPENSATION & REMOVAL 357 chargers EV CHARGES INSTALLED 986.3 GWh RENEWABLE ENERGY GENERATION 9% INVESTMENTS INTO GREEN BUSINESSES Sustainability governance, pg 34 SUSTAINABILITY REVIEW 2 3 5 4 6
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