Yinson Annual Report 2021

72 YINSON HOLDINGS BERHAD SECTION 04 : SUSTAINABILITY STATEMENT YINSON'S CLIMATE GOALS CARBON NEUTRAL BY 2030 NET ZERO BY 2050 Climate change is a global agenda. The UN IPCC warns us that we need to limit the global temperature increase to well below 2°C and pursue further efforts to cap the increase to within 1.5°C to avoid catastrophic consequences to natural and human systems. Various sources, including the Science Based Targets (SBTi) state that global greenhouse gas emissions need to peak as soon as possible, with measured steps taken to remove emissions from the atmosphere to arrive at a global state of net zero by 2050. YINSON IS DETERMINED TO DO OUR PART IN THE GLOBAL MOVEMENT TOWARDS A LOW-CARBON, CLIMATE RESILIENT ENVIRONMENT. OUR COMMITMENTS OUR CLIMATE GOALS ARE OPERATIONALISED THROUGH A THREE-PRONGED FRAMEWORK In line with our Core Value of Sustainable, Yinson aspires to be part of the solution towards solving the global climate issue. Climate action is an important driver of our Group strategy development, operationalised throughout our Business Divisions. With due consideration to the urgency of the climate situation, we aim to take thoughtful and measured steps towards achieving our Climate Goals. We look forward and committed to share our progress on our targets in future disclosures. CARBON NEUTRAL BY 2030 h Measure and verify our GHG emissions h Deploy emission reduction measures where reasonably practicable h Utilise high-quality offsets to balance residual GHG emissions by 2030 NET ZERO BY 2050 h Focus investments into nature-based and technology- based carbon removal projects h Actively invest into zero or low-carbon technologies h Commit business operations in alignment with the Paris Agreement CARBON REDUCTION h Reduce GHG emissions from Scope 1, 2 and 3 h Limit carbon intensity of FPSOs h Source renewable energy to replace usage of grid electricity CARBON COMPENSATION h Invest in zero or low-carbon technologies h Increase capacity of renewable energy generation CARBON REMOVAL h Invest into nature-based carbon removal solutions such as afforestation and reforestation h Utilisation of technology-based carbon removal solutions such as Direct Air Capture (DAC) and Carbon Capture, Utilisation and Storage (CCUS) Strategy review, pg 46; Affordable and clean energy, pg 74; Industry, innovation and infrastructure, pg 76; Climate action, pg 76; Sustainability governance, pg 108; Carbon emissions management, pg 145