164 YINSON HOLDINGS BERHAD OUR CAPITALS NATURAL CAPITAL MATERIAL TOPIC: ENVIRONMENTAL STEWARDSHIP DEFINITION OF MATERIAL TOPIC Advocacy of environmentally-friendly organisational practices including considerations for efficient energy management. IMPACTS GS5 GS6 S2 S3 S4 S7 S8 S9 GS1 GS2 WHY IS THIS TOPIC MATERIAL TO US? Taking responsibility for our environmental impact contributes towards creating natural surroundings that are more conducive to business activities in terms of health and wellbeing and smooth business operations. It also lowers overall operations costs and improves positive brand recognition, giving us the social license to operate. As a large multinational company, Yinson has the capacity to make a real difference in the promotion and practice of environmental awareness and environmental stewardship. There are also strict regulatory standards that must be complied to which could have regulatory repercussions if not met. The key areas in which Yinson focuses on environmental stewardship are energy, air emissions, water and biodiversity. RISKS • A natural environment that is polluted and not wellbalanced causes health and wellbeing issues in the community and disruption to business operations and daily lives. • Unsustainable energy consumption takes a toll on the energy supply chain. • Lack of environmental stewardship by businesses can affect biodiversity of the local area, with long-term effects on the balance of the natural ecosystem. • Poor environmental stewardship affects brand reputation and performance against ESG indicators, making a company less attractive to skilled talent, investors and other stakeholders. • Regulatory penalties and disruptions to operations may occur if companies are found to be in breach of environmental requirements and standards. OPPORTUNITIES • Good environmental business practises contribute to healthier natural surroundings for employees and the local community, leading to improved business operations and community wellbeing and preservation of biodiversity. • Responsible energy use promotes a more stable and affordable supply chain, contributing to the development of local economy and improved quality of life – leading in turn to a more conducive business operating environment. • Companies with strong environmental stewardship and display leadership in this area can enjoy a strong brand reputation, which is attractive to skilled talent, investors and other stakeholders. • Companies that invest into technologies to monitor and manage their environmental indicators can take a leadership position in this area. This can be a competitive edge and a potential revenue stream, as well as a means to contribute to the industry’s environmental stewardship as a whole. Management approach HSE governance We leverage on our overarching Sustainability Policy, specifically the Environmental Conservation & Protection principle, to guide our focus in maintaining excellent performance in environmental stewardship. Governance on our Sustainability Policy has Board and Management-level oversight, and is driven by our Corporate Sustainability Department and ESG Taskforce, which comprises representatives from every business division. This ensures that the operations both at Group and division-level adhere to the principles in our Sustainability Policy. The ESG Taskforce representatives are assigned with accountability of ensuring the execution of our Sustainability Policy’s principles. All environmental discrepancies are reported to relevant stakeholders such as the regulatory bodies, NGOs or national governments. Biodiversity & ecosystem management Our management and employees are committed to remain vigilant in any HSEQ matters including potential biodiversity impact from Yinson’s operations. We have also committed to SDG 14, Life Below Water, to ensure the prevention of marine pollution of all kinds and sustainably manage and protect marine and coastal ecosystems. MN3
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