Yinson Annual Report 2021

63 ANNUAL REPORT 2021 GLOBAL ECONOMY OVERVIEW RISKS OPPORTUNITIES YINSON’S STRATEGIC RESPONSE IMPACT t 5IF $PWJE pandemic saw global economies locking down and crude prices plummeting. t 8JUI UIF SFPQFOJOH PG borders, resumption of normal activities and vaccine rollout programmes in place, the global economy is gradually recovering. However, the reboot of the economy back to pre-pandemic levels comes with its own set of challenges and opportunities. t 5IFSF JT B HSPXJOH push towards a greener economy. t 4VQQMZ DIBJO disruptions and business continuity challenges could affect most businesses and economies. t 8IJMF MFOEFST BSF unlikely to entirely cut off exposure to the oil & gas sector due to the global green agenda, investors may favour pathways that support a greener economy. t $PNQBOJFT XJUI SPCVTU business continuity plans could adapt to the ‘new normal’ and build resilience for future challenges. t *O B MPX JOUFSFTU SBUF environment where there is significant dry powder in the market, companies with long-term projects and stable returns are increasingly attractive to new partners and investors. t 5IF SJTF PG HSFFO MPBOT and sustainability- linked lending provides exciting opportunities for businesses which adopt a sustainability focus. t 5IF HSPXJOH HSFFO economy segment provides synergistic opportunities for companies with marine and energy backgrounds looking to diversify. t &TUBCMJTINFOU PG climate-based strategies and action plans, as well as improved disclosures of ESG items will align outcomes to stakeholder expectations. t "U :JOTPO XF CFMJFWF that energy is the backbone of economic growth. t 8F MFWFSBHF PO our strengths and knowledge in the energy space to strategically diversify and adapt our businesses to ensure we build a profitable, sustainable and resilient portfolio of assets. This includes diversification into renewables in 2019 and green technologies in 2020. t :JOTPO BDUJWFMZ TFFLT opportunities to create synergies between our financial strategies and Group-wide ESG practices, such as through sustainability- linked financing opportunities and green bonds. t :JOTPO NJUJHBUFT supply chain risks by integrating ESG into procurement practices. t 8F DPOUJOVPVTMZ enhance our strategy towards achieving our Carbon Goals and improving overall ESG disclosures. t "U B TUSBUFHJD MFWFM we manage transition risks relating to climate change by considering regulatory, reputational and market risks. Stakeholder groups Materiality Capitals S10 S1 S3 S2 S4 S5 S6 S9 S7 S8 M6 M7 M11 EXTERNAL ENVIRONMENT C3 C5 C1 C2