158 YINSON HOLDINGS BERHAD OUR CAPITALS SOCIAL & RELATIONSHIPS CAPITAL MATERIAL TOPIC: CLIENT RELATIONSHIPS DEFINITION OF MATERIAL TOPIC Maintenance of relationships with Yinson’s business partners and clients to ensure mutual success. IMPACTS S1 S2 S3 S4 S6 S9 S9 S10 GS3 WHY IS THIS TOPIC MATERIAL TO US? Our clients in our offshore and renewables businesses are key stakeholders for the Group, as they currently provide our primary revenue streams that allow us to deliver our projects, operate and grow. Our client relationships are long-term, for example, the tenure of our contracts with some of our offshore production and renewables clients are more than 20 years long. Throughout the contract tenure, continual engagement is essential to ensure that we continue to meet our contractual obligations amid a changing external environment. Additionally, strong client relationships can open the doors to opportunities to innovate new solutions, expand on business networks and advocate on shared concerns such as climate change. CHALLENGES • Lack of engagement with clients can cause a mismatch in expectations, leading to unfulfilled contractual obligations and expectations, further risking litigation, financial and reputational ramifications. • Poor client relationships can cause a drop in client confidence, leading to loss of future business opportunities. OPPORTUNITIES • Good client relationships can enhance operational, financial and reputational performance, leading to improved efficiencies and cross-learning opportunities. • Strong client relationship management promotes business growth through future collaboration opportunities, network expansion and innovation of new solutions. • An open relationship based on trust and common goals allows companies to better manage unplanned situations, as it enables quick decision-making. Management approach Partnering with the right clients is the first step in how we manage client relationships. We seek to conduct our business with reputable clients, which allows us to limit or remove counterparty risks. The majority of our key clients are investment grade or large national oil companies. We also seek like-minded clients who share our values of ESG and sustainability. We believe these foundations allow us to have meaningful, long-term and value-adding client relationships. We engage regularly with our clients in order to find out and address their key areas of concern, which were highlighted in our recent materiality assessment as operational excellence and meeting our contractual obligations. We communicate openly and transparently with clients on these areas of concern through regular engagement including scheduled reports, kick-off and milestone meetings, regular communications and dialogue, site visits and stakeholder engagement events. We also seek to add additional value to our clients wherever possible. For example, in line with our desire to contribute to the mitigation of climate issues, we have included low emission technologies in our FPSO designs for our clients’ consideration. The successful implementation of these designs leverage on our close working relationship with our clients. Leading the way with responsible solutions, pg 103; Charter contracts, pg 81; Clients, pg 125 MS2 MATERIAL TOPIC: COMMUNITY ENGAGEMENT DEFINITION OF MATERIAL TOPIC Collaboration with local communities where we have operations on social projects that benefit the wider public. IMPACTS S1 S2 S7 S8 S9 S10 GS1 WHY IS THIS TOPIC MATERIAL TO US? Community engagement helps create foster long-term trust and growth. Through empowerment and proactive contribution to our host communities, we reinforce our commitment to creating shared value between Yinson, the community and the environment. A good standing in our local communities provides us with the social license to operate. Our CSR programmes are guided by two core principles of environmental conservation & preservation and quality education. Helping to develop a skilled local workforce and keeping the natural environment healthy contributes to the sustainability of the operating environment, allowing Yinson to operate efficiently for the long run. Community involvement also helps with employee satisfaction, providing our people with purpose and fulfilment. MS3
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