134 YINSON HOLDINGS BERHAD SUSTAINABILITY STATEMENT GHG METHODOLOGY & VERIFICATION Yinson’s methodology for monitoring & verifying GHG emissions Yinson accounts for and reports Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from the generation of purchased energy consumed) and Scope 3 (all other indirect emissions that occur in the value chain). Yinson is committed to ensuring the adoption of appropriate calculation methodology and the integrity of information disclosed. Our methods are based on such as the UK oil & gas industry’s Environmental and Emissions Monitoring System (“EEMS”) Greenhouse Gas Protocol, ISO 14064 and IPIECA. Yinson engaged a thirdparty verifier to conduct the verification of GHG emissions of the FPSO’s operations reporting, which covers the majority emissions of our business. The verification statement for our GHG emissions is available on our website. Scan this QR code to view the verification statement on our GHG emissions GHG Emissions from FPSOs GHG emissions from Yinson Production FPSOs are based on recorded activity data, such as fuel gas and marine gas oil (“MGO”) consumption, flaring and production volumes. Conversion factors are based on recommended values by UK Oil & Gas “EEMS – Atmospheric Emissions Calculations (Issue 1.810a)”. The following GHGs are material to Yinson’s operations: CO2 (Carbon dioxide), CH4 (Methane) and N2O (Nitrous oxide). These are converted to CO2 equivalents by applying the 100year time-horizon global warming potential as recommended by IPCC’s 5th Assessment Report. Emission sources from the FPSOs include power generation (boilers, gas turbine generators, essential and emergency generators, and diesel driven firewater pumps), flaring (HP, LP and pilot), as well as cold venting. A physical measurement on fugitive emissions was done onboard FPSO JAK to evaluate the impact from fugitive emissions. The measurement exercise indicated that the contribution of fugitive emissions are statistically negligible to the overall results, and therefore are not included as an emission source. However, significant accidental gas releases (LOPC tier 1) shall be included in the GHG inventory. Yinson did not record any such releases in FYE 2022. Energy Consumption On FPSOs Energy consumed by FPSOs is reported as primary energy. This is the energy content of the hydrocarbon fuel used to produce electricity, heat, steam etc. This is in line with the energy use reporting format recommended by IPIECA in the Sustainability Reporting Guidance For The Oil & Gas Industry, 4th Ed., and GRI 302-Energy. Cold Venting Cold venting from cargo tanks is recognised as a significant contributor to GHG emissions. Quantification of the cold vent gas is done by considering the ideal gas law, which reasons that 1m3 of crude added to cargo tanks will displace 1m3 of gas through the cold vent. This method does not account for flashing in the tanks, and there are a number of assumptions and uncertainties associated with the model. Yinson has initiated a study to assess the flashing factor and to simulate the cold vent gas composition. Based on results from third-party studies on FPSO JAK and FPSO Helang, we are confident that the cold vent emissions, as disclosed in this Report, is conservative and on the high side of the scale. Yinson is working on improving the model used for estimating the cold vent contributions to our GHG emissions. GHG Calculator Yinson uses an excel-based GHG calculator to determine the GHG and atmospheric emissions from our operations, as well as the cold venting. This calculator takes activity data and production data as inputs and calculates the resulting emissions. The calculator and methodology has been verified to a reasonable assurance by DNV. Carbon Intensity Ratios The primary indicator used by Yinson to measure and evaluate performance of our operations is the amount of CO2 released per barrel of oil equivalents (kg CO2e/BOE). Production is converted to BOE by utilising conversion factors published by Norwegian Petroleum, found at www.norskpetroleum.no. We also measure the amount of CO2 released per MWh. This is a measure that combines primary energy consumed by FPSOs and renewable energy production by Yinson Renewables. Adjustment in GHG Consolidation Approach Yinson has changed our consolidation approach from equity share to operational control and reclassified the accounted emissions. The reassessment of our consolidation approach was due to the reasons described as follows:
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