Yinson Annual Report 2021

22 YINSON HOLDINGS BERHAD SECTION 01 : OVERVIEW MANAGEMENT DISCUSSION & ANALYSIS OPERATIONALISE ESG Putting our ESG commitments into action, coupled with robust sustainability governance, is an important part of our Group strategy. ESG performance helps investors to take into account the traditionally ‘unmeasured’ ESG impacts when making investment decisions, which are increasingly used along with financial analysis to gauge the long-term outlook of a business. The happiness of our workforce, security of our data, and our vulnerability to climate change are some examples of intangibles that have a material impact on our business. We also believe that strong ESG performance helps to insulate us against any crisis, as reflected by the consistent outperformance of ESG portfolios compared to traditional portfolios. In Yinson, teams are given mandates to identify, develop and execute ESG initiatives that contribute towards our overall sustainability goals and commitments. The initiatives are included into each team’s action plans, with progress measured against targets set. The Sustainability Committee, which I chair, meets every quarter (or more frequently if needed) to review the plans and progress, and ensure they’re aligned with Group sustainability strategies. The Board maintains oversight of the overall progress of sustainability matters through reporting from the Board Risk Management Committee. In FYE 2022, we will focus on strategically assessing methods to achieve our newly set Climate Goals. This is a Group-wide undertaking, with each business division taking ownership of their unique abilities to contribute towards the goal. In FYE 2021, in preparation for our increased focus on environmental performance, we implemented an ISO 14001-certified Environmental Management System ("EMS") for full environmental impact monitoring and control and enhanced our baseline for reporting based on internationally recognised practices and standards. Externally, we are fully committed to improving our corporate disclosures. We believe that being open, accessible, and transparent on our strategy, achievements, plans and outlook, arms our external stakeholders with the knowledge that they need to make informed decisions about the Group. Gaining the confidence of our external stakeholders enables us to have meaningful engagements, leading to better business productivity. Our corporate governance performance has been acknowledged through several recognitions, including the 2019 ASEAN Corporate Governance Scorecard Award, placement amongst the top 30% of Sustainalytic’s ESG Risk Ratings Energy Services Industry group, and maintenance of our position on the FTSE4Good Index series. We will continually invest into strengthening our corporate governance, and have plans to significantly improve our disclosures in this area. FOREFRONT OF INNOVATION AND DISRUPTION Encouraging innovation is our strategy for catalysing growth, keeping us relevant to the changing environment, and keeping our competitive edge. We encourage our people to think outside the box when faced with challenges, and never to be satisfied with the status quo, but to instead find ways to do a routine task better, faster, and more productively or even differently. When complemented by strong governance and balanced risk management, innovation brings about breakthroughs that can revolutionise and propel business performance, spreading outwards to disrupt the industry. In FYE 2021, we significantly developed our Asset Lifecycle Management approach by initiating lifecycle programmes across Yinson, utilising available objective data to optimise the processes from business development to decommissioning or redeployment phases. These cross- department initiatives focus on collaboration and information- sharing across the organisation to increase productivity and efficiency to achieve optimised solutions. We established a working group for Data Management which focuses on making lifecycle information and operational data available, supporting the transformation into a data driven business. This in turn enabled the development of a Lifecycle Approach to sustainability, pg 73; Sustainability governance, pg 108; Natural Capital, pg 143