Yinson Holdings BHD

Yinson has updated several internal governance documentations to enhance sustainability and climate-related risk governance at board and management level. The updated documents include our Board Charter, Committee-level Terms of Reference and our Sustainability Policy. Subsequently, we have also renamed the Board Risk Management Committee to Board Risk and Sustainability Committee to reflect the enhanced responsibilities of the committee on managing sustainability, including climate-related risks and opportunities. To ensure effective management of the Board's functions and duties on climate-related issues, the Board has delegated climate-related responsibilities to BRSC, with ultimate accountability tied to the Chairman of BRSC. In turn, the BRSC receives input from the MC and SC. BRSC reviews Yinson's climate-related risks and opportunities as part of their quarterly meeting agenda and advises management on implementing climate-related action plans. BRSC also reviews strategies related to sustainability, including climate-related strategies, and monitors the implementation progress and performance of Yinson's Climate Goals towards its committed targets; via a pre-defined set of approved climate-related metrics and targets. The BRSC is responsible for bringing relevant sustainability and climate-related initiatives, such as GHG reduction activities or implementation of net zero strategies, for Board consideration and approval before implementation. Yinson has updated the Board Charter to adopt the latest guidance as per the Malaysian Code on Corporate Governance ("MCCG"), dated 28 April 2021. The Board Charter incorporates the responsibilities of the Board when it comes to climate-related issues, including the review and implementation of the strategy, major plans of action, risk management policies, annual budgets, and business plans. The update also requires the Board to consider climate-related issues when setting the performance objectives and oversee major capital expenditures, acquisitions, and divestments on an annual basis. [...] BRSC serves as a bridge between the management-level and board-level. At management-level, the MC and SC are responsible for supporting the transaction of climate-related information to BRSC. The MC which also carries the function of the Risk Management committee. Both committees are chaired by Yinson's Group Chief Executive Officer, Mr Lim Chern Yuan, and are held quarterly. The SC is supported by the Corporate Sustainability function, under the Governance, Risk Management and Compliance department. The function is overseen by Group Corporate Advisory, headed by Yinson's Chief Strategy Officer, Mr Daniel Bong Ming Enn, who is a member of both the MC and SC. Some of the main functions of the SC are to formulate the sustainability strategy, set metrics and targets to align with our committed climate goals, monitor sustainability performance, manage sustainability (including climate-related) risks and opportunities and propose sustainability initiatives. The SC is further supported by the ESG Task Force ("ESGTF"), which consists of cross-functional members of various seniority. The ESGTF meets regularly to operationalise strategies towards managing identified climate-related risks and opportunities, such as carbon credit purchasing and GHG emission assessments.

##### The management of climate-related matters is fully integrated into our robust corporate governance framework, aligning with Yinson's Climate Goals of achieving carbon neutrality by 2030 and net zero by 2050. Our climate governance structure thrives under the leadership of our Board and Senior Management, collectively guiding our climate strategy.

Yinson established Board-level oversight and Management-level responsibility to govern climate-related issues. In 2023, we streamlined our governance with the integration of the Sustainability Committee into the Management Committee, now renamed the MSC. This strategic move enhances management efficiency and oversight, bolstering our ability to respond swiftly to emerging climate risks. Key MSC members are accountable for sustainability-related Key Performance Indicators ("KPIs"), ensuring alignment with our climate objectives.

Our ongoing engagement with stakeholders provides critical feedback, helping us prioritise climate focus areas and identify improvement opportunities, as reflected in our materiality assessments. This proactive stance allows us to navigate the complexities of the climate agenda while driving meaningful progress toward our long-term climate ambitions.

##### BOARD OVERSIGHT

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To ensure effective management of its climate-related functions and duties, the Board has delegated these responsibilities to the Board Risk & Sustainability Committee ("BRSC"), with ultimate accountability resting with the BRSC chairman. The BRSC receives input from the MSC and incorporates this into its quarterly review of Yinson's climate-related risks and opportunities, advising management on the implementation of action plans. Additionally, the BRSC is responsible for reviewing sustainability strategies, including those related to climate, and monitoring the progress and performance of Yinson Climate Goals towards its committed targets.

Chaired by an Independent Non-Executive Director, the BRSC plays a pivotal role in oversight, meeting quarterly to review the effectiveness of climate strategies and initiatives. It is also tasked with bringing relevant sustainability and climate-related initiatives, such as GHG reduction activities or the implementation of net zero strategies, to the Board for consideration and approval before implementation.

The BRSC's duties and responsibilities are governed by the Terms of Reference, which are accessible on the Company's corporate website.

##### MANAGEMENT RESPONSIBILITIES

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At the management level, the MSC is pivotal in aligning Yinson's business strategies with our sustainability goals. Chaired by Yinson's Group Chief Executive Officer, the MSC meets quarterly to oversee the integration of sustainability into business operations, manage climate-related risks and opportunities, and ensure effective communications of climate-related information to the BRSC.

Supported by the Corporate Sustainability function within the Group Strategy department, the MSC is responsible for developing sustainability strategies, setting metrics and targets to achieve our climate objectives, monitoring sustainability performance, managing climate-related risks and opportunities, and proposing relevant initiatives. The Group Chief Strategy Officer, who oversees this function, is also an active member of the MSC.

The MSC is further supported by the ESG Task Force ("ESGTF"), which comprises of cross-functional members from various levels of the organisation. The ESGTF meets monthly to implement strategies to manage identified climate-related risks and opportunities, including carbon reduction initiatives and GHG emission assessments.

In addition to strategy development, the MSC deliberates on sustainability matters that impact the Group's business strategies, policies, and frameworks. This includes a focus on climate-related risks to ensure that appropriate internal controls and mitigating measures are in place.

The following three sustainability-related KPIs are considered for all MSC members and are measured at the Group-level. These KPIs, endorsed by the Nomination & Remuneration Committee and the Board, include two specific climate-related KPIs and are reviewed annually for alignment with Group strategies:

1 Reduction in carbon intensity (CO2e/BOE) in line with Yinson Climate Goals.

2 Improvement in ESG rating scores based on assessments by ESG rating agencies.

3 Safety KPIs.

Each MSC member has KPIs set against these sustainability metrics, with their remuneration linked to performance against these targets. To ensure Management and the Board are up-to-date with the latest sustainability trends and climate issues, external consultants have been engaged for Board training sessions, held in October 2021 and January 2023. Additionally, regular training is provided to all Yinson employees by the Corporate Sustainability function via the Learn@Yinson online platform and workshops, such as the Sustainability Lunch and Learn Series.

Group-wide capacity is further enhanced through ad-hoc improvement programmes delivered by various credible organisations.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes