103 SUSTAINABILITY REVIEW | BUILDING ENVIRONMENTAL AND CLIMATE RESILIENCE WHY IS THIS TOPIC MATERIAL TO US? Infrastructure assets, such as our FPSOs and solar farms, are resource-intensive due to their sheer scale and complexity. Their construction requires large quantities of materials such as steel and silica, as well as resources like energy and water. The maintenance and operation of infrastructure over its lifespan continue to consume resources, especially if the assets are not designed with efficiency in mind. Prioritising efficient and responsible resource utilisation over the projects and operations phases of our assets is paramount so that we can ensure that our assets can contribute to economic growth without negatively affecting natural resources. Further, resource-efficient infrastructure has been identified as a crucial driver of sustainable development and meeting global climate action goals. As global demand for infrastructure increases, resource-efficient designs and processes can help meet this demand in a way that is both sustainable and economically viable. As a company, efficient resource use leads to substantial economic savings, both in raw material costs during construction and during the ongoing operations phase, while also facilitating stronger environmental performance. MANAGEMENT APPROACH Yinson’s businesses require inputs from four primary resource categories: land, materials (including fossil fuels, metal ores and non-metallic minerals), water and energy. Our activities within these categories closely connect to the United Nations Sustainable Development Goals (“UN SDGs”) that we have committed to supporting as a Group, specifically SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), SDG 13 (Climate Action), and SDG 14 (Life Below Water); as well as non-core SDG 12 (Responsible Consumption). ME5 RESOURCE EFFICIENCY Responsible use of input material in product development, construction and operations. Concerned stakeholders S2 S6 S10 Risks • Poorly optimised resource outlay into new projects may drive up construction costs and cause inefficiencies, affecting returns. • Over-reliance on specific resources may make us vulnerable to supply chain disruptions or price fluctuations. • Strain on supply chains negatively affects local communities, industry peers and economies. Opportunities • Innovative solutions to optimise resource utilisation allow projects to be delivered ahead of time and budget. • A good track record of delivery is a competitive advantage, attracting investors, clients, consumers and talent pool. • Avoidance of negative social and environmental impacts on local communities as a player who is conscientious about local resource use. Our approach to resource efficiency involves a comprehensive strategy that encompasses planning, design, construction, operation and decommissioning. Asset design plays an integral role in the resource efficiency of our assets. We adopt principles of sustainable design throughout the lifecycle of our assets that consider the volume and sources of inputs of materials and natural resources. We ensure that construction processes are optimised to minimise resource usage and waste. Once our offshore production assets are operational, we focus on maintaining resource efficiency by monitoring and managing the resources that are used – a process that is enhanced through our focus on digitalisation and technology. These include energy management systems to monitor and control energy use, water-saving measures, and waste reduction programmes. We also prioritise a holistic asset lifecycle strategy, with teams dedicated to ensuring that our assets operate at optimal efficiency, preventing resource wastage. We plan ahead for the end of the assets’ lifecycles to ensure that the decommissioning process takes into consideration materials that can be recycled or repurposed and minimal environmental impact. Throughout the entire process, we engage with our stakeholders to ensure that the assets meet the production needs outlined by our clients and offtakers without compromising environmental and social integrity. Redeployments and conversions of FPSOs Unlike fixed structures, floating assets can be used in a variety of marine environments. Thus, one of the advantages of FPSOs is their potential for redeployment to new fields, which extends the vessel’s operational lifespan significantly.
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