166 YINSON HOLDINGS BERHAD OUR CAPITALS TRADE-OFFS IN OUR CAPITALS We are cognisant of the interdependencies that exist between our Capitals and strive to allocate resources in a way that maximises their use whilst also creating long-term value. When weighing trade-offs between our Capitals, we consider short-term consequences against long-term value creation while staying closely aligned to our corporate vision and business strategies. TRADE-OFF HOW YINSON MANAGES THE TRADE-OFF C2 C3 C4 C5 High liquid assets and bank balances boost stakeholder confidence, thus improving our Social & Relationship Capital. However, this may impede fueling our Manufactured Capital, Intellectual Capital, and Human Capital that are required for the Group’s growth and expansion. Our approach for managing our Financial Capitals is to stay focused on investing in the areas of ESG and our new business ventures over the next few years. We believe this strategy will generate long-term value and sustainable, scalable revenue streams for our stakeholders far into the future. C1 C4 C5 C6 As over 90% of our revenue is derived from our Offshore Production business, there will certainly be an impact on our Natural Capital. However, revenue generated from the division creates employment to local communities in countries we operate and fuels the growth of our business operations, benefiting Human Capital, Social & Relationships Capital, and Financial Capital. Our contribution to the oil & gas supply chain ensures that the developing countries where we operate, such as Ghana and Nigeria, will continue to enjoy stable and affordable energy, promoting economic activities and improving quality of life, and thus bringing long-term value to all our stakeholders. We continue to reinforce our commitment towards reducing the adverse impacts on our Natural Capital. We are currently leading the way in realising our Zero Emissions FPSO Concept and are working closely with our clients to achieve this goal. We also joined the TCFD and released our Climate Goals Roadmap and SLF Framework. We also continued our diversification push for renewables and green technologies, acquiring new wind energy projects and forming strategic partnerships with green technology companies. C1 C3 C4 As a responsible organisation, the Group is committed towards maintaining high levels of governance among our employees and ensure sound governance systems and processes are in place. While these will have an impact on our Human Capital and Financial Capital, from spending on corporate governance enhancements and training, increasing cybersecurity protocols to improving our vendor screening process, we believe these investments are crucial to improve our Intellectual Capital, which ensures business continuity. We are ensuring that the highest standards of governance to fulfil international standards in relation to applicable legislations are being adopted. We are progressively developing an internationally recognised governance and risk management framework and strategy along with strengthening our COBE. In 2021, our ABMS was certified to ISO 37001 by Bureau Veritas. C1 C3 C4 C5 As our business expands, our Financial Capital is impacted by our investments in expanding our workforce, which is our Human Capital. We aspire to be an employer of choice and in doing so, we shall invest in building a thriving workplace environment to retain the right talent, which will add value to our Intellectual Capital and Social & Relationships Capital. We will continue investing in building our Human Capital as we believe our people are the key to the execution of all our strategies and achievement of our goals. Our HR Transformation Plan continues to make headway with many initiatives being rolled out, which include updating our DEI Policy, expanding our internship and graduate programmes, revising our employee benefits, improving our performance management system and allowing hybrid work arrangements to keep our people safe, happy and productive.
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