Yinson Annual Report 2020

39 Annual Report 2020 A LT E R N AT I V E E N E R G Y S O U R C E S Overview Risks Opportunities • Growing concern over environmental damage and the conservation of materials and fuels. • A clear shift towards renewables in the global energy mix, from around 15% in 2016 to over 20% in 2030, as government policies gear towards cleaner energy. • The expansion of generation from wind and solar PV helps renewables overtake coal in the power generation mix in the mid-2020s. By 2040, low-carbon sources could provide more than half of total electricity generation. • 2020 could herald the year of the electric car, with a wave of new models launching as the world’s biggest manufacturers scramble to lower the carbon dioxide emissions of their products. • Potential changes in investor preferences towards carbon- friendly investments. • Financial risks resulting from the process of adjusting towards a low-carbon and climate-resilient economy. • Inability to manage ‘environmental image’ may reduce ability to attract talent. • Growing generation from wind and solar photovoltaic presents opportunities for increased investment in Yinson’s Renewables Division. Yinson has ventured into the renewables market in FYE 2021 with the acquisition of solar parks in Rajasthan, India. • Widespread adoption and advancement of renewables infrastructure to drive capex and operating costs down. • Governments promoting green energy via grants, subsidies or tax incentives. • Greater opportunity to demonstrate better and continual control of our environmental impact can strenghthen our credibility in the market, thereby attracting talent. How Yinson mitigates this risk: Renewables assets (pg 21), Group strategy (pg 30), Sustainability-linked financing (pg 53), Renewables (pg 68), Utilise digitalisation tools for HSEQ improvements (pg 78), Natural Capital (pg 120), MD&A (pg 128)