MISC - Annual Report 2014

ENVIRONMENT ENERGY CONSUMPTION AND EMISSIONS Total energy consumption for the MISC Group based on direct and indirect sources in 2014 was 64,053 terajoules (TJ) which is a 14.8% reduction from 2013. As with the previous years, most of the energy consumption, over 99% of total energy is a result of our shipping business through the burning of fuel. As such, fossil fuel consumption across the Group also saw a decline with the exception of Marine Diesel Oil (MDO). Heavy Fuel Oil (HFO) and LNG remained the primary choice of fuel for our vessels and operations. The use of Low Sulphur Fuel Oil (LSFO) and Low Sulphur Gas Oil (LSGO) also saw a decrease due to the reduced number of vessels in line with business rationalisation across the Group. In line with lowered energy consumption across all units, total CO 2 emissions produced by the Group in 2014 also recorded a 14.5% reduction at approximately 4.6 million tonnes as compared to 5.4 million tonnes in 2013. The Group operated a fleet size of more than 100 vessels comprising of LNG Carriers, Petroleum Tankers and Chemical Tankers as at 31 December 2014. As such, the shipping business accounts for a very large proportion of the Group’s total CO 2 emissions. Similar to the previous years, over 99% of total carbon emissions is derived through combustion of fuel and thus, is categorised under Scope 1. Scope 2 emissions derived from indirect sources only constituted 0.8% of total carbon emissions in 2014. MISC also monitors the nitrogen oxide (NOx ) and sulphur dioxide (SO2 ) emissions arising from its operations in line with the International Convention for the Prevention of Pollution from Ships (MARPOL). Additionally, parameters such as particulate matter (PM10) are also monitored for tracking purposes. In 2014, all NOx , SO2 and PM10 emissions recorded a decrease in line with lowered fuel consumption. Group Shipping Non-shipping 2012 2013 2014 77,715 75,141 64,053 77,030 74,758 63,577 684 563 476 TOTAL ENERGY CONSUMPTION (Terajoules) Group Shipping Non-shipping 2012 2013 2014 5,495 5,355 4,577 5,417 5,288 4,521 78 67 56 MISC GROUP TOTAL CO 2 EMISSIONS (Thousand Tonnes CO2 ) 2012 2013 2014 13 10 0.1 793 939 80 7 18 7 0.2 705 865 176 13 16 6 0.1 581 758 146 17 HFO LNG LSFO MDO LSGO Diesel Petrol MISC GROUP FOSSIL FUEL CONSUMPTION (Thousand Tonnes) 2012 2013 2014 Scope 1 Scope 2 5,448 46 5,312 43 4,541 35 MISC GROUP CARBON EMISSIONS BASED ON SCOPE (Thousand Tonnes CO2 ) MISC BERHAD - Annual Report 2014 p 106 SUSTAINABILITY REPORT

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