MSM Malaysia Holdings Berhad Annual Report 2021

Scope 3 includes indirect GHG CO2 emissions from business air travels. The limits posed on travel during the Movement Control orders, as well as Group-wide encouragement to choose teleconferencing, virtual meetings and car pooling alternatives, has contributed to the 77% reduction of air travel emissions during the year. Business Air Travel fell from 115 flights in FY2020 to only 46 in FY2021. Note: Our calculation method for Scope 1 GHG emissions is based on the GHG protocol calculator - https://ghgprotocol.org/ ghg-emissions-calculation-tool, while Scope 2 is based on http://www. greentechmalaysia.my/carboncalculator/ and Scope 3 is based on the International Civil Aviation Organisation (ICAO). MANGROVETREE PLANTING In conjunction with the National Environment Day 2021 on 13 October, and as part of MSM’s step-up of our ESG framework, MSM Prai signed a Certificate of Collaboration (COC) with the Penang DOE, towards realising green initiatives in preserving and conserving the environment. This was accompanied by the launch of a Mangrove Tree Planting programme along the coastal mouth of a river from which the refinery draws water for cooling purposes. A total of 700 mangrove saplings were planted alongside MSM Prai refinery to help rehabilitate the wider ecosystem and improve the surrounding environment scenic landscape. Ecological benefits include protection of water quality, stabilisation of the riverbank and protection of fish habitats. A hundred more saplings are to be planted as part of this activity. Mangrove trees are also known to absorb more carbon than other land-based forests so an increase in mangrove population mitigates climate change too. The planting benefits MSM Prai’s refining operations as a denser network of mangrove roots can better filter sediments, heavy metals and other pollutants from entering the injection of water pump at the refinery, which is essential in maintaining the water quality. A proper monitoring on the health and growth of the planted mangrove trees will be carried out to ensure the long-term viability and sustainable value of the programme. Everyone in MSM plays an active role in balancingthe need between business operations and preservingthe environment. By enhancingthe ESG framework within MSM Group, we aimto bring positive sustainability impact through awide range of initiatives Key activity: Seek ways to reduce GHG CO2 emissions throughout our operations • Carry out product life cycle assessment to determine gross product’s carbon footprint • Achieve ISO 14067 (Carbon Footprint), ISO 5001 (Energy Management) certification • Reduce employees carbon footprint through job rotation for every plant • Obtain green energy from a solar farm probably in 2025-2026 to offset 50% of TNB purchased electric • Manage plastic waste more efficiently in tandem with Malaysia Plastics Sustainability Roadmap 2021-2030 • Continuously improve employees understanding of climate change and their roles via roadshows, training and campaigns Future Forward Plans Target Activities 2020 2021 2019 Scope 3 (CO2 emissions) (tonnes) 46.30 6.50 1.51 SUSTAINABILITY JOURNEY HOWWE ARE GOVERNED FINANCIAL STATEMENTS ADDITIONAL INFORMATION 141

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