123 SUSTAINABILITY REVIEW | DRIVING SUSTAINABLE GROWTH THROUGH GOOD CORPORATE GOVERNANCE MG2 CORPORATE GOVERNANCE & BUSINESS ETHICS Business policies and practices to ensure ethical, transparent and responsible corporate governance. Risks • Reputational risks, covering loss of public trust and investor/shareholder confidence. • Significant negative impact on business operations, resulting in financial losses. • Poor corporate governance performance can affect long-term business sustainability. • Overextension of corporate governance can lead to bureaucracy issues or slower decision-making. Opportunities • Checks and balances enable the Board to have appropriate control and oversight of Yinson’s businesses. • Control in operations will improve external confidence towards Yinson’s operations, leading to positive financial and reputational impacts. • Transparency with corporate governance practices facilitates trust-building amongst all stakeholders and boosts shareholder confidence. Concerned stakeholders S1 S2 S3 S5 S4 S7 WHY IS THIS TOPIC MATERIAL TO US? Corporate governance and business ethics are integral to Yinson, shaping our identity and operations. Upholding the highest standards of integrity not only defines who we are but also reinforces trust among stakeholders. We recognise that sound corporate governance practices are essential for maintaining the trust of all our stakeholders. Furthermore, our robust framework ensures legal compliance, social responsibility and environmental sustainability, aiming for positive impact while mitigating risks and enhancing our reputation. Failure to adhere to high standards of integrity could lead to financial losses, legal consequences, diminished access to capital, negative societal and environmental impacts, loss of stakeholder trust, and increased employee disengagement and turnover. These pose significant risks to our sustainability and success. In summary, governance and ethics are fundamental to Yinson’s Core Values and mission as they drive trust, innovation and sustainable growth for all our stakeholders. MANAGEMENT APPROACH Yinson adopts a high standard of business practices and a robust corporate governance and risk framework which emphasises transparency, accountability, efficient leadership and sustainable performance. The Board continues to oversee our governance, providing insight and guidance to protect the interests of our stakeholders through the implementation of a robust governance framework and effective control systems. We continuously assess, enhance and refine our governance practices and frameworks to align with the best interests of our stakeholders. This commitment is exemplified through our implementation of the Directors' Fit and Proper Policy, which ensures directors' unwavering dedication to their duties within the Group. Furthermore, our HLR Policy was revised in previous years to incorporate a comprehensive monitoring and reporting process for suppliers. We review and update our governance policies at least every three years, or more frequently as needed to ensure that we maintain the highest standards of business ethics and uphold a strong corporate governance framework. As Yinson continues to expand its operations in Brazil, the Company has translated key Group-level governance policies and procedures into Portuguese. These include the Code of Conduct and Business Ethics (“COBE”), Whistleblowing Policy & Procedure, Anti-Bribery and Anti-Corruption (“ABAC”) Policy & Procedure and HLR Policy. We are also working towards making certain training modules relating to COBE topics available in Portuguese language for the Brazil office. To manage sustainability-related issues effectively, we have instituted Board Committees. Our Board Risk & Sustainability Committee (“BRSC”), chaired by an Independent NonExecutive Director and consisting of other Independent NonExecutive Directors and the Group CEO, provides oversight of our sustainability strategies. The BRSC convenes quarterly to review and guide the Group's sustainability endeavours, establish performance metrics and targets, monitor sustainability performance and address sustainability risks and opportunities. Training and awareness We organise training, upskilling and awareness campaigns to ensure that all Yinson employees uphold the highest standards of corporate governance in their daily responsibilities. These are facilitated through our LMS, Learn@Yinson, which allows selfpaced learning. As part of the onboarding process, new hires undergo ABAC training, and current employees receive annual refresher training. As of FYE 2024, 70% of our employees completed the annual refresher training. Additionally, in 2023, we engaged a service provider to implement a Compliance Management System (“CMS”) for the Group. One of the CMS modules is a training platform which enables online training modules to be assigned to external stakeholders, such as third-party suppliers. We aim to extend corporate governance training, such as ABAC training, to our third-parties to raise awareness and set clear expectations of Yinson’s ABAC requirements when dealing with the Group. Anti-Bribery & Anti-Corruption Yinson maintains a strict zero-tolerance policy against bribery and corruption, and actively supports efforts to combat corruption in the countries where we operate. Safeguarding Yinson from corrupt practices remains our paramount focus.
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