110 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2023 Why is this topic material to us? Clients for YP, YR and RO provide the Group with our primary revenue streams, enabling us to undertake projects, grow and operate. Many of our offshore production and renewables contracts are long-term, on average 17 years or more including optional extensions. Therefore, it is crucial for us to maintain regular engagement with our clients throughout the contract period, taking into consideration shifting external environments, so that we can fulfil our contractual obligations. Moreover, fostering strong client relationships can create opportunities for developing innovative solutions, broadening business networks, and advocating on shared issues such as climate change. CLIENT RELATIONSHIPS MS4 DEFINITION OF MATERIAL TOPIC Maintenance of relationships with Yinson’s business partners and clients to ensure mutual success. IMPACTS S2 S9 S10 S6 GS3 GS4 GS5 GS6 S1 CHAMPIONING HUMAN RIGHTS & HUMAN CAPITAL DEVELOPMENT Management approach We aim to conduct our business with reputable clients to minimise counterparty risks. YP’s clients are primarily investment-grade major or national oil companies, whereas YR’s are primarily Government-owned or publicly listed power utilities or industrial/commercial customers. RO’s clients are offshore asset owners who seek our assistance in supporting their asset operations. An important strategy that we adopt in order to meet our Climate Goals is to engage with clients or potential clients whose ESG and sustainability values align with our own. This forms a strong basis for us to proceed with an impactful and long-term client relationship of positive value. We maintain consistent communication with our clients to identify and resolve their primary concerns. YP’s clients’ primary concerns, as outlined in our materiality assessment, are operational excellence and fulfilling contractual obligations. We practise open and transparent communications with our clients regarding these matters through various forms of regular engagement, such as scheduled reports, milestone and kick-off meetings, site visits, regular dialogue and stakeholder engagement events. These frequent engagements pave the way for us to establish mutual understanding, manage expectations and build relationships. We also constantly explore ways to add value to our clients. For example, we propose low-emission technologies in our FPSO designs for our client’s consideration as part of how we aim to contribute to the mitigation of climate issues. We understand that the successful adoption of these designs depends significantly on our solid working relationship with our clients.
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