95 ENVIRONMENTAL CONSERVATION & PROTECTION SUSTAINABILITY REVIEW Climate governance Yinson has a sound governance structure to guide and manage climate-related risks as part of our existing corporate governance. Our sub-Board committees oversee and manage sustainability-related issues, including climate-related topics. Climate strategy In the short to medium-term, we remain committed to supporting our clients in the gradual transformation to make offshore energy production less carbon intensive. In addition to developing and adopting the Zero Emissions FPSO Concept, we aim to eliminate regular flaring from two-thirds of our operating units by 2030, through closed flaring and hydrocarbon blanketing. Beyond 2030, as carbon removal technologies, such as Carbon Capture, Utilisation & Storage (“CCUS”) and DAC become more mainstream and financially accessible, we anticipate that this would be one of the key features supporting our clients in offshore energy production. We plan for GHG emissions to be reduced by more efficient power generation units or through CCUS technology where feasible, or offset using DAC technology towards 2050. We aim for all legacy FPSOs remaining post-2030 to implement zero-routine-flaring, which we expect will reduce our FPSO fleet’s GHG emission intensity per barrel of oil equivalent by a further 30% by 2050. Yinson also understands the need to be part of the solution on the energy transition journey. In 2020, we ventured into the renewable energy space through the acquisition of the 140 MW Rising Bhadla 1 & 2 solar plants in India. We have since built a strong renewables pipeline of more than 5 GW. We target to achieve renewable energy generation of up to 1.7 TWh per annum by 2025. In early 2021, Yinson began investing in green technologies to electrify marine and land transportation, paving the way for an interconnected, smart and low-carbon ecosystem. Task Force on Climate-related Financial Disclosures At Yinson, our FPSO operations are responsible for over 97% of our current GHG emissions. We recognise the concept of common but differentiated responsibility and acknowledge our role in our mission to reduce carbon emissions and combat climate change. Yinson is determined to join the global efforts to address climate issues and remains committed to our Climate Goals guided by our Climate Goals Roadmap. Climate-related risks management Yinson has adopted the recommendations of the TCFD in a standalone Climate Report that was published in 2021. The Climate Report presents the findings of the scenario analysis of our business portfolios based on the Stated Policies Scenario (STEPS) and Sustainable Development Scenario (SDS). The Climate Report also shares our transition and physical risks, including a climate-related physical risk analysis using the Representative Concentration Pathways (RCP) 8.5, and our risk heat maps. On top of that, we have integrated climate-related risks into our ERM via unique risk identification numbers. This register is a supplement to link Yinson’s overall ERM processes with climate-related risks. The register also serves as a feedback document to the existing risk management process to capture medium to long-term climate-related risks which could be overlooked in the short-term. Metrics and targets Yinson has set a challenging goal of achieving carbon neutrality by 2030 (covering Scope 1 and 2 emissions) and net zero by 2050 (covering Scope 1, 2 and 3 emissions). By 2030, we aim to increase annual renewable energy generation by up to 5.6 TWh, reduce Group-wide carbon intensity (kg CO2e/MWh) by 50% and reduce carbon intensity (kg CO2e/BOE) of FPSO operations by 30%. Scan this QR Code for more information on TCFD-related disclosure at Yinson
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