89 YINSON GREENTECH BUSINESS REVIEW RISKS AND OPPORTUNITIES Short to medium-term (1 to 5 years) Risks Opportunities YGT’s response Long-term (6 to 10 years) New and novel green technologies can be challenging to commercialise, caused in part by high product costs. Investors and businesses that get involved in green technologies that take off commercially have the opportunity to increase profitability and be leaders in the transport and logistics segment. Building businesses that are foundationally resilient and contribute to the ecosystem of the future. Continuing to build our position as a leader in the transport and logistics segment. Corporations that do not adapt their business models to align with green consumer choices risk the longer-term viability of their business. Companies whose business models integrate green consumer choices may be more resilient as global trends evolve to favour a greener way of life. Maintaining our focus on building the ecosystem of the future, aligning our business model in an agile way to meet the evolving needs of the wider community throughout the energy transition. Investors and companies risk backing a novel technology that fails, causing monetary loss. Investors and businesses that get involved in green technologies that take off commercially have the opportunity to increase profitability and be leaders in the transport and logistics segment. Continuing to build our marine, mobility, energy and digitalisation segments where we have leadership position and strong teams, in alignment with government incentives and industry trends. The clean energy transition may pose risks to the more vulnerable in society in terms of energy security and energy affordability. Companies that help to facilitate a just transition can capitalise on these opportunities while also addressing societal and environmental concerns. Continuing to improve and provide our electrification solutions to the broader community, keeping costs low and the delivery of our services reliable. Green technology businesses that are not prepared for or familiar with the evolving regulatory frameworks may risk non-adherence to those regulations. Businesses that are able to keep their business practices up to date with evolving regulatory frameworks insulate their businesses from regulatory risk, boosting investor confidence. Strengthening the corporate team at the business unit level to manage regulatory risks. A lack of cost-effective and reliable research institutions could delay the development of green technologies. Businesses that establish research partnerships with reliable research institutions have a competitive advantage when developing new technologies. Continuing to invest in developing technologies through collaborations with research institutions and through investments into green technology companies whose tech enhances our offerings. A just and inclusive transition The necessary transition from carbon-intensive to more sustainable economies will have significant impacts on individuals and communities – some positive, others negative. There are clear and foreseeable risks for those who are not able to adapt to environmental and economic changes, usually developing economies. We believe that our transport electrification solutions facilitate an inclusive and just energy transition, especially for the more vulnerable in society. EV leasing, for example, takes the financial burden of acquiring and maintaining a vehicle off users. With RydeEV, our affordable subscription and lease-to-own plans bundled with battery-swapping services make the transition sensible for motorcyclists. Making charge points and battery swaps available everywhere strengthens the transition further by lowering charging costs and increasing their availability. We have an opportunity to make significant impacts on the decarbonisation of the transport ecosystem while helping to smoothen the transition risks for the broader society. Our passion for this mission will continue to drive our strategy and decisions as the industry landscape evolves.
RkJQdWJsaXNoZXIy NDgzMzc=