Yinson Annual Report 2021

152 YINSON HOLDINGS BERHAD SECTION 05 : OUR CAPITALS TRADE-OFFS IN OUR CAPITALS We are mindful of the interdependencies that exist between our Capitals, and aim to allocate resources in a way that optimises their use and creates long-term value. When considering trade-offs between our Capitals, we balance short-term impacts against long-term value creation and adhere closely to our business strategies and corporate vision. TRADE OFF HOW YINSON MANAGES THE TRADE OFF C2 C3 C4 C5 A preference towards keeping our liquid assets and bank balances high could restrict investments into improving our Manufactured Capital, Intellectual Capital and Human Capital . However, the more prudent approach to financial management inspires stakeholder confidence, boosting our Social & Relationships Capital . Yinson seeks to apply a sustainability mindset in decision-making when it comes to management of our Financial Capital. To safeguard our future and ensure the long-term sustainability of Yinson, we enhanced our Group Investment Policies in FYE 2021 to set out a framework for making investment decisions for our business divisions, taking into account that the value chain for these businesses differ significantly. The Corporate Treasury Investment Policy was also created with the objective of capital preservation and liquidity. C6 C5 C4 C1 There is a possibility that by remaining largely reliant on revenue generated from our Offshore Production business, we impact on our Natural Capital . However, these positively impact Human Capital, Social & Relationships Capital and Financial Capital through employment, ability to deliver value to our stakeholders and fiscal returns. Our contribution to the global oil & gas supply chain brings stable and affordable energy to the developing countries where we operate, such as Ghana and Nigeria, facilitating economic activities and improving quality of life. Yinson is committed to reducing the negative impacts of our operations on Natural Capital. This can be seen in Yinson’s diversification into renewables in 2019 and green technologies in 2020, together with the newly established Climate Goals to be carbon neutral by 2030 and net zero by 2050. C3 C4 C1 Maintaining a high level of governance awareness amongst employees and ensuring sound governance systems and processes impacts on Human Capital and Financial Capital such as through increased spending on corporate governance enhancements and training; increased cyber security protocols and enhancing our vendor screening process. However, robust compliance management enhances our Intellectual Capital by ensuring business continuity and continuous improvements in our governance processes. Yinson is committed to continually strengthening our corporate governance standards, for example, through the enhancement of disclosures within this Report, provision of corporate governance training on our LMS and maintenance of a robust corporate governance framework. Yinson has also launched a new VRP that integrates both commercial and ESG considerations. C1 C3 C5 Our investments towards attracting and retaining talent, such as through training and development, employee benefits and creating an enjoyable work environment, impacts on our Financial Capital . However, investing in our employees has significant benefits in terms of our Intellectual Capital and Social & Relationships Capital as it enables us to attract and retain the right people to develop and execute our business processes and engage with our stakeholders. Yinson seeks to become an employer of choice by providing employee-driven solutions that are relevant, add value and enable our people to succeed. We have developed a HR Transformation Plan that has translated into initiatives such as our LMS, Total Rewards Strategy Project and Succession Planning Management approach. C1 C6 C5 Investing in improving our environmental indicators and monitoring impacts our Financial Capital . However, investments into ESG indicators improves the long-term outlook of our business by allowing us to manage our Natural Capital better, thus inspiring better management of our Social & Relationships Capital due to increased stakeholder confidence. Yinson is committed to continuously improving our environmental disclosures. We implemented an EMS that is certified to ISO 14001 standards, enabling full environmental impact monitoring and control. We have also participated in a sustainability-linked loan which allows Yinson to receive a preferential financing rate upon meeting targets related to our ESG performance.