96 YINSON HOLDINGS BERHAD | INTEGRATED ANNUAL REPORT 2024 ME2 INCLUSIVE ENERGY TRANSITION A balanced approach to the energy trilemma to support the global energy shift towards an equitable and inclusive low-carbon economy through renewable and innovative low-carbon solutions. Concerned stakeholders S3 S5 S7 S9 S10 Risks • The pace of the energy transition for carbon-intensive businesses faces obstacles such as the high costs of implementing low-carbon technologies and the availability and accessibility of such technologies. • Certain communities may face economic challenges during the transition period, requiring thorough consideration of social impacts. • Rapid changes in policies and regulations can introduce uncertainty, affecting long-term investment and planning in the energy sector. Opportunities • Inclusive energy transition promotes the expansion of renewable energy sources and the EV ecosystem to further enhance Yinson’s business resilience and growth. • Transition initiatives drive innovation and create new job opportunities in emerging green sectors. • Embracing inclusivity in transition efforts improves Yinson’s reputation, attracting socially responsible consumers and investors. WHY IS THIS TOPIC MATERIAL TO US? Inclusive energy transition facilitates a shift towards sustainable energy, emphasising social equity and accessibility. This approach addresses the energy trilemma by balancing energy equity, environmental sustainability and energy security. Prioritising inclusivity fosters a resilient and equitable energy landscape, capable of meeting global energy demands in a just and orderly manner. It also plays a crucial role in mitigating climate change and benefiting communities across socio-economic spectrums. MANAGEMENT APPROACH Safeguarding energy security, environmental sustainability and energy equity At Yinson, we believe inclusivity is at the heart of the energy transition. Access to modern energy is fundamentally linked to the well-being, prosperity and development of every economy. In the coming decades, oil & gas will continue to play an essential role as we steadily transition to various renewable energy sources. Yinson aims to play a vital role in this shifting landscape, supporting energy infrastructure development while actively diversifying into renewables and green technologies. This approach is essential to accelerate the transition to a low-carbon economy. The energy trilemma refers to the challenge of balancing three crucial yet often competing priorities in the energy sector: energy security, environmental sustainability and energy equity. This trilemma arises because simultaneously achieving these goals is not easy, with energy demand and development varying due to factors like availability, infrastructure, market competition and government policies. ENERGY SECURITY ENVIRONMENTAL SUSTAINABILITY ENERGY EQUITY Energy security Yinson Production and Yinson Renewables contribute both traditional and alternative forms of energy to the mix, catering to localised energy demands. This approach keeps the supply stable and accessible throughout the transition. Energy equity Yinson Production and Yinson Renewables play a key role in keeping energy costs low during the transition by providing a stable energy supply tailored to the economics and infrastructure of the communities in which we operate. Meanwhile, Yinson GreenTech is building an energyefficient, integrated technology-driven ecosystem that helps to keep energy costs low. Environmental sustainability While Yinson Renewables and Yinson GreenTech drive the transition to a clean energy ecosystem, Yinson Production contributes to lowering emissions in offshore production operations and supporting others in this endeavour. Farosson will supply further capital pools for sustainable infrastructure investments.
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