161 ANNUAL REPORT 2022 OUR CAPITALS MATERIAL TOPIC: CLIMATE CHANGE & GREENHOUSE GAS EMISSIONS DEFINITION OF MATERIAL TOPIC Integration of climate-related considerations into business strategies, as well as limiting the generation of carbon emissions from all operations. IMPACTS S1 S2 S3 S4 S5 S6 S7 S8 S9 GS1 GS3 GS2 GS6 WHY IS THIS TOPIC MATERIAL TO US? Many key sustainability risks that are financially material are climate-related. Hence, climate change forms a large portion of sustainability risk in Yinson’s business. We recognise that we cannot manage what we do not measure. Therefore, carbon accounting and GHG emissions is one of the topics that we focus on in our engagements with our stakeholders. Acknowledging the business’ vulnerability to the impact of climate change is a critical consideration when making strategic business decisions, as it has a material effect on our performance, reputation, operating environment, supply chain and overall long-term business sustainability. CHALLENGES • The maturity and feasibility of many climate technologies are not yet established, which may lead to higher costs and risk of failure for early adopters. • It may become increasingly challenging and expensive to source high-quality carbon offsets which are independently verified, which could affect an organisation’s ability to achieve its climate goals. • Companies that do not manage and disclose their GHG emissions well may face added stakeholder pressure, eventually affecting their reputation and ability to operate. • Poor management and disclosure of GHG emissions can result in exclusion from sustainability indexes, business and financing opportunities. • The workforce is increasingly seeking climate-responsible employers, which will cause issues with employee attraction and retention for companies that do not manage their climate risk well. OPPORTUNITIES • Factoring climate change considerations into decisionmaking will strengthen strategic planning capabilities, resulting in business models that are resilient and lead to sustainable growth trajectories. • Early adopters and innovators of climate solutions and technologies may have a headstart in their GHG reduction journey, establishing their leadership position in this area. • There is potential to commercialise climate solutions and technologies towards achieving global climate targets. • Businesses that generate high quality carbon credits may reap financial benefits. • Good management of GHG and climate matters can boost a company’s reputation, whilst increasing the company’s attractiveness as an employer and client. • Good management of GHG and climate matters opens up new business and financing opportunities. Management approach Data monitoring & verification Yinson accounts for and reports Scopes 1, 2 and 3. We are committed to ensuring the adoption of appropriate calculation methodologies in order to maintain the integrity of information disclosed. Our methods are based on internationally recognised practices and standards such as EEMS, Greenhouse Gas Protocol, ISO 14064 and IPIECA. We also conduct verification of our FPSO operations’ GHG emissions with a third-party verifier, which is available on our website. Scan this QR code to view the verification statement on our GHG emissions Our offshore production division is the Group’s largest emitter of GHGs, thus great focus is devoted to monitoring, verifying and disclosing its emissions. When reporting on emission from our FPSOs, we consider: • GHG emissions from FPSOs, such as fuel gas and MGO consumption, flaring and production volumes. • Energy consumption on FPSOs, which is the energy content of the hydrocarbon fuel used to produce electricity, heat, steam, etc. • Cold venting from cargo tanks. A detailed elaboration on the scope of these emissions, as well as the calculation methodology and ratios used, are detailed in the GHG Methodology & Verification section of our Sustainability Statement. GHG methodology & verification, pg 134 NATURAL CAPITAL MN1
RkJQdWJsaXNoZXIy NDgzMzc=