95 SUSTAINABILITY REVIEW | BUILDING ENVIRONMENTAL AND CLIMATE RESILIENCE Climate-related opportunities Yinson recognises that there is significant medium to longterm potential to develop new business opportunities within the low-emission and renewable energy infrastructure. Yinson is committed to helping our clients transition toward less carbon-intensive offshore energy production. The FPSO market presents opportunities for us to collaborate with clients on shared climate concerns. We leverage our position as a sustainability-focused organisation committed to emissions reduction to execute FPSO projects. We will continue engaging with potential clients on low-emission designs for new FPSOs and explore opportunities to integrate low-emission technologies into our existing assets. Yinson ventured into renewable energy with the establishment of Yinson Renewables in 2020, as part of our effort to accelerate the global transition to clean energy sources. Yinson Renewables has actively contributed to strengthening the global renewable energy infrastructure, with Rising Bhadla 1 & 2 and Nokh solar plants in India and more recently, the acquisition of the Matarani Solar Project in Peru. Yinson also established Yinson GreenTech in 2021, through which we are investing in green technologies to electrify marine and land transportation, paving the way for a low-carbon ecosystem. Since its establishment, we have developed a suite of integrated solutions that has received enthusiastic uptake from commercial customers, including Pos Malaysia, Starbucks Malaysia and Jurong Port; as well as strategic partners such as CelcomDigi, LHN Group, PLUS Malaysia and Proton’s Pro-Net. METRICS AND TARGETS Yinson has set an ambitious target to achieve carbon neutrality by 2030, encompassing Scopes 1 and 2 emissions and net zero emissions by 2050 for Scopes 1, 2 and 3 emissions. Climate-related metrics and targets are integrated under our 30 by 30 initiative to be achieved by 2030. INTERNAL CARBON PRICING In the year under review, we introduced an Internal Carbon Pricing (“ICP”) Policy and Framework to address potential climate-related transition risks and seize potential opportunities. This framework enables Yinson to take a financial approach to strategically allocate capital towards energy transition initiatives, including investments in clean energy expansion. The ICP Policy provides clear guidelines on integrating, evaluating and implementing the ICP mechanism, establishing a robust governance and control structure for managing an internal Sustainable Investment Fund. Yinson’s ICP Framework includes a range of carbon charges per tonne of CO2e emitted above a predefined emission target. This pricing mechanism serves as a decision-making tool, allowing our businesses to assess their exposure to external carbon pricing schemes and guide decisions and investments towards positive change. The pricing is based on current and projected carbon regulations, which can be adjusted to reflect market trends and regulatory changes. We plan to implement the ICP in Yinson Production by the end of 2024, with the intention of extending it to other businesses in the future. Through this pilot phase, we seek to gain valuable insights and continuously enhance the ICP implementation process. Yinson will continue to engage with stakeholders on our carbon accounting practices and the progress of our GHG emissions reduction efforts and other related issues to ensure transparency and accountability. These actions demonstrate our commitment to managing our business’s carbon footprint, opening up opportunities to tap into funding from environmentally conscious investors. By prioritising climate action, we aim to access new business opportunities to build a solid foundation for sustainable value creation. Inclusive energy transition, pg 96 - 97. 30 by 30 scorecard, pg 26 - 27.
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