93 SUSTAINABILITY REVIEW | BUILDING ENVIRONMENTAL AND CLIMATE RESILIENCE Our GHG accounting methodology, GHG emissions and key Sustainability Performance Targets undergo third-party verification. Yinson maintains a comprehensive inventory of our significant emissions sources, which we disclose to organisations such as Carbon Disclosure Project (“CDP”) for benchmarking purposes. Yinson started participating in and supporting CDP disclosures in 2023. For our FPSOs, we meticulously track, analyse, verify and report various sources of emissions, including GHG emissions from fuel gas and marine gas oil consumption, flaring and cold venting from cargo tanks. The nature of operations within the oil & gas value chain implies that GHG emissions from production activities are attributed to the Scope 1 emissions of the field operators and, as such, classified as Scope 3 emissions for Yinson. This is in line with industry common practice. Yinson proactively monitors evolving disclosure standards and strives to align with the latest industry best practices. As our climate action journey progresses, we remain adaptable and committed to strategies and actions that support our climate ambitions. We aim to transparently communicate and disclose our climate endeavours in an impactful manner. Further, we are committed to reviewing our climate progress and projections against our Climate Goals regularly, incorporating new developments such as advancements in emissions reduction technologies and best practices in emissions accounting. At the same time, we are enhancing our Task Force on Climate-Related Financial Disclosures (“TCFD”)-related disclosures to reflect initiatives and progress made in optimising the disclosure of climate-related financial information. We are also committed to reviewing our Climate Goals Roadmap every two years or as needed. Scan for more information on our GHG methodology, verification and assurance. Climate risk and GHG emissions management are material concerns to our stakeholders, in particular financiers, regulatory bodies, investors, shareholders, local communities and suppliers. We regularly engage with stakeholders on these matters to ensure transparency and accountability. One of the areas of interest is the value chain emissions. Yinson actively engages with stakeholders to address Scope 3 GHG emissions across our value chain. This includes collaborating with clients to reduce emissions from downstream leased assets and expanding our supplier engagement efforts. These engagements aim to align materiality and accounting approaches while identifying opportunities to drive tangible reductions throughout our value chain. Carbon reduction Carbon removal Our focus is on reducing emissions across Scopes 1, 2 and 3 by implementing changes in internal processes and operations. This involves adopting innovative emissions-reducing technologies such as hydrocarbon blanketing, closed flaring and vapour recovery units to eliminate routine flaring and decrease the carbon intensity of our FPSOs. We also aim to incorporate renewable energy sources into our operations wherever feasible. We are actively exploring various carbon removal mechanisms to capture carbon emissions from the atmosphere, including both nature-based (afforestation and reforestation) and technologybased solutions (Direct Air Capture). As these solutions continue to evolve and become more viable from technological and economic standpoints, we will continuously update and refine our carbon removal strategy. Carbon compensation We will utilise carbon compensation mechanisms, such as carbon credits, to offset GHG emissions generated by our operations. We prioritise the acquisition of high-quality carbon credits that undergo independent verification to ensure their credibility and effectiveness in offsetting our emissions. Governance of climate-related matters Yinson maintains a robust governance framework to facilitate responsible oversight, evaluation and management of climate-related matters, and associated risks and opportunities. Climate-related matters receive Boardlevel oversight and guidance, while the Management & Sustainability Committee (“MSC”) is responsible for managing risks within tolerable levels with specific and material metrics and targets. Yinson’s climate strategy Our Climate Goals are operationalised through a threepronged framework: carbon reduction, carbon removal and carbon compensation. Integrity in corporate reporting and meaningful relationship with stakeholders, pg 154 - 159. Sustainability governance, pg 19.
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