Yinson Annual Report 2020

134 Yinson Holdings Berhad SECTION 5 STRATEGIC REVIEW We are currently awaiting the outcome of our bid for the Parque das Baleias FPSO project, by Petrobras, as the sole remaining bidder of the project. We remain confident that we will be successful in obtaining the project award in Q2 2020. Bidding is a Group-wide effort, with all five core pillars and supporting business infrastructure playing crucial roles in formulating a winning bid. To qualify and be awarded, the Group needs to demonstrate a strong track record in both project delivery and operations, plus provide a comprehensive plan for delivering the awarded project. The multifaceted collaboration also involves close partnership with our local partners in respective countries, which allows Yinson to tap on their expertise and networks to achieve greater heights of successes together. Risk, compliance and legal The world’s risk landscape is rapidly evolving. According to the World Economic Forum’s Global Risk Report, three of today’s top 5 global risks are environment-related: extreme weather events, natural disasters, and failure of climate- change mitigation and adaptation. In 2013, only two of the top 5 risks were related to the environment, and five years earlier in 2008, environment- related risks were not in the top 5 at all. Risks in the supply chain that are typically driven by ESG factors include the depletion of raw materials and natural resources; workforce health and safety incidents; abuse of human and labour rights; and corruption and bribery – leading directly to reputational, operational and financial risks. These risks directly affect how effectively all five core pillars of our business perform. Yinson’s commitment to building a culture of compliance and transparency across the Group comes from the top, with our Board and Key Management championing compliance extensively and sustainably throughout the Group. We have made significant strides in terms of strengthening our compliance culture at Yinson in FYE 2020, particularly in managing our ESG risks: • We’ve increased our disclosures on raw materials and natural resources. This sets a firmer reporting baseline upon which we can identify improvement measures in the coming years. Management Discussion & Analysis • Workforce health and safety continues to be one of the most important focuses for Yinson, both for onshore employees and offshore crew. We continue to invest significant resources on mitigating safety and health-related risks, resulting in very strong safety record across our offices, projects and operations. • We continued to prioritise the personal and professional development of our people and improve employee engagement through the rolling out of Yinson’s Training and Development Policy, staff engagement surveys, and enhancement of staff benefits. • Our HLR Policy was approved by the Board in March 2020, further strengthening how Yinson maintains and promotes fundamental human rights. We also implemented stronger personal data protection measures across the Group, including the appointment of DPOs in all our offices to drive personal data protection effectively at a local level. • To further mitigate the risk of corruption and bribery, we extended our awareness and training initiatives to include vendors and other third parties. Additionally, we brought our ABAC employee awareness training online. • Project concentration risk has also been amongst Yinson’s top 5 risks, and one that we are seeking to mitigate by identifying additional sources of income and diversification. Human Capital (pg 84) Governance (pg 69) Natural Capital (pg 120) Review and strengthen Group-level governance (pg 69) Looking to the future (pg 139) Financing Yinson’s business is capital-intensive in nature. With the recent award of the FPSO Anna Nery project in Brazil, and a few potential new projects and acquisitions in the coming financial year, securing funding to finance these projects is crucial. The Group’s capital strategy hinges on securing long term capital partners in both debt and equity markets, with partnerships being built on trust and cooperation. In 2017 we began an exercise to divest a 26% stake in FPSO JAK to a