Yinson Annual Report 2021

62 YINSON HOLDINGS BERHAD SECTION 03 : EXTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT The geopolitical landscape, economic conditions and social factors can impact our business and our capacity to create value for our stakeholders over the long term. We have identified eight external themes and outlined our strategic approach to ensure that we are positioned to manage the risks and capitalise on the opportunities associated with each of these themes. Deep structural changes are necessary for the world to achieve the ambitious target set by the Paris Agreement to limit global warming to within 1.5°C above pre-industrial levels. Corporations worldwide are urged to control their environmental impacts and take part in the global movement towards a low-carbon, climate-resilient business environment or face dire climate-driven issues. Referencing key recommendations from the TCFD, we frame these eight external themes against the backdrop of climate change-driven transition risk: policy & legal, technology, market and reputational risks. EXTERNAL VARIABLES GLOBAL ECONOMY OIL & GAS MARKET FPSO MARKET REGULATIONS RENEWABLE ENERGY MARKET GREEN TECHNOLOGIES MARKET INFORMATION TECHNOLOGY CHANGES IN CONSUMER BEHAVIOUR