114 YINSON HOLDINGS BERHAD STRATEGY & OUTLOOK BUSINESS REVIEW - GREEN TECHNOLOGIES EXTERNAL ENVIRONMENT • Demand for sustainable development has increased as the push towards net zero becomes a global goal. • Governments across the world are putting significant incentives into green technologies, propelling the growth of the market. • Green technology segments that are seen as most promising are getting increasingly saturated with early investors and start-ups. • The growth in the market is bringing about many novel innovations, with investors hoping they have backed the new unicorn. • Product and commercialisation costs for novel green technologies are immense, making green tech innovations harder to be commercialised for the industry. • Development of robust regulations to govern green technologies applications are struggling to keep pace with the rapid growth in the green technologies market. • Regulatory changes needed for the deployment of novel technologies are slower in the approval process with limited sandboxing permits. RISKS • New and novel green technologies can be challenging to commercialise, caused in part by high product costs. • A lack of cost effective and reliable research institutions could delay the development of green technologies. • Corporations that do not adapt their business models to align with green consumer choices risk the longer-term viability of their business. • Investors and companies risk backing a novel technology that fails, causing monetary loss. • Green tech businesses that are not prepared for or familiar with the evolving regulatory frameworks may risk non-adherence to those regulations. OPPORTUNITIES • Investors and businesses that get involved in green technologies that take off commercially have the opportunity to increase profitability and be leaders in the green tech segment. • Businesses that establish research partnerships with reliable research institutions have a competitive advantage when developing new technologies. • Companies whose business models integrate green consumer choices may be more resilient as global trends evolve to favour a greener way of life. • Businesses that are able to keep their business practices up with evolving regulatory frameworks insulate their business from regulatory risk, boosting investor confidence. EXTERNAL VARIABLES, RISKS & OPPORTUNITIES STRATEGIC RESPONSE TO OUR RISKS & OPPORTUNITIES Building a green ecosystem of energy supply As how all novel technologies start out, green technologies are currently relatively expensive compared to their fossil fuel-based predecessors, putting them out of reach to most. YGT aims to bring new business models that make these technologies affordable by balancing the capital and operational expenditure gains for the markets we are addressing. The lower these technologies are priced, the more accessible it can be for everyone, and this goes in a cycle until these cleaner options are business as usual. We believe that reaching this critical mass everywhere is key to meeting the ambitious climate targets set by the Paris Agreement. We aim to increase the accessibility and affordability of green technologies by building low carbon businesses, serving commercial and industrial customers who wish to achieve their own net zero investments. Working together with businesses and partners who have this common goal ultimately contributes to a robust ecosystem that runs on clean technologies. A strong clean energy infrastructure creates an environment that encourages even more innovation, as the market matures alongside rising investor confidence in the viability of the segment. We believe that our experience in energy infrastructure and technologies, especially in the marine, mobility and energy segments, allows us to take a leadership position to drive this change. In line with the Group’s overall net zero plans, such an ecosystem is a key enabler for our renewables business to thrive, as well as for the decarbonisation of our offshore production business.
RkJQdWJsaXNoZXIy NDgzMzc=