51 VALUE CREATION AT YINSON | MATERIALITY MATTERS YINSON MATERIAL MATTERS - KEY TAKEAWAYS Occupational Health and Safety (“OHS”) is classified as our most material topic due to the nature of our business and expansion. Yinson adopts a robust management approach to effectively manage OHS impacts. Yinson’s stakeholders also highlighted balancing business growth and performance, with capital allocation as a key concern. This could be effectively managed with a clear transition strategy, capital allocation plan and an emphasis on business innovation, to ensure business continuity. To that end, inclusive energy transition is central to our strategy, with a significant impact on our financial landscape and society at large. However, rising investment costs of low-carbon and renewable energy continue to be a concern, necessitating support from like-minded partners. Climate change and carbon management is key to Yinson’s business continuity strategy. While decarbonisation and optimisation efforts may be capital intensive in the near term, they serve as enablers for sustained business operations into the future. Yinson Production is exploring new and innovative energy and carbon solutions to establish a leadership position in this domain, providing a competitive advantage over our industry peers in the long term. Our stakeholders are in unequivocal agreement that Yinson’s commendable performance in corporate governance and business ethics should be upheld. Any deviation from compliance standards would have far-reaching consequences, causing severe damage to the company’s reputation, credibility, and overall standing in the business landscape. Lastly, with rising environmental and social concerns in the value chain, supply chain management has become a key issue among our stakeholders. YINSON’S DOUBLE MATERIALITY ASSESSMENT PROCESS STEP 1 Identify material matters The assessment began with the identification and compilation of a comprehensive list of sustainability topics that could impact Yinson and its operations. Yinson’s sustainability functions conducted a materiality comparative assessment, taking into account the applicable operating sectors, geographical areas of operations and our value chain to identify relevant sustainability matters. For a holistic and comprehensive comparative assessment, we referenced applicable sustainability frameworks including Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), International Petroleum Industry Environmental Conservation Association (IPIECA), as well as the material topics from Yinson’s previous materiality assessments and those from global and regional peers, investors and shareholders. In addition, we accounted for sector-agnostic sustainability trends, giving us insights into emerging material matters. STEP 3 Materiality impact analysis Yinson conducted an impact analysis, supported by the outcomes from Steps 1 and 2. This analysis aims to define the impacts, risks and opportunities from the identified material matters from the perspective of impact materiality and financial materiality. Yinson has enhanced our stakeholder analysis by referencing the salience model, which classifies and prioritises stakeholder input based on three key attributes: power, legitimacy, and urgency. The outcome of the analysis informed the prioritisation of material matters, material matrix plot, and the identification of key management approaches for material matters. STEP 4 Validation and integration into strategy and reporting A list of the top 14 most material matters was finalised as Yinson’s Material Matters 2024. The revised material matters were subjected to thoughtful internal discussions with key stakeholders and the Senior Management to ensure strategies and action plans remained aligned. The revised material matters and matrix were presented to our Board and Senior Management for final review and approval. STEP 2 Stakeholder engagement Yinson engaged with our internal and external stakeholders through a series of interviews and questionnaires to understand the impacts of our business activities and seek feedback on material sustainability matters. Stakeholder engagement is an important tool to understand our stakeholders’ perspectives and expectations regarding sustainability matters. In addition, new sustainability matters might be raised for consideration during the DMA. The quantitative and qualitative input from our stakeholders informed the assessment of impacts, risks and opportunities. Yinson’s approach to stakeholder engagement, pg 154 - 159.
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