At MISC, we recognise that the operating context for the shipping and maritime industry has changed and will continue to evolve with the times, bringing with it new challenges and opportunities. A long-term business view with sustainability as the key driver will definitely benefit the Group as we continue to navigate an ever-changing market. Some of the challenges that are currently on our radar include aspects relating to: • Environmental Regulations At MISC, we recognise and fully comply with the IMO regulations. On 1 January 2015, stricter environmental regulations with regards to sulphur emissions in Emission Control Areas (ECAs) would have come into force with such regulations set to expand globally in 2020. Compliance with increasing regulations may pose challenges to industry members due to high costs of implementation and lack of current available technology. • Resource Efficiency As more global organisations recognise the importance of sustainability in the aspects of managing their businesses, resource efficiency becomes an area of concern due to cost increases of raw materials and rising material scarcity. At MISC, resource efficiency comes in the form of managing energy efficiency for our business – both at shore and at sea. • Health & Safety The health and safety of our employees and assets will always be at the forefront of our priorities. As maritime trade continues to expand globally, safety practices should also improve in tandem, to minimise safetyrelated incidences that could have significant impact on assets, people and the environment. • Overcapacity With the LNG market expanding rapidly over the past decade, overcapacity continues to remain a concern for MISC as the next few years will continue to see delivery of LNG newbuildings. However, with the recent cost optimisation and fleet efficiency exercises carried out at MISC, we have stayed financially secure as well as competitive in the marketplace by providing the best service to our customers through our targeted customer relationship management initiatives. • Business Ethics Being an organisation that operates globally across markets and cultures, sound business practices will remain a key area for the Group. Improving upon existing practices, MISC also rolled out a manual to specifically detail the Group’s zero tolerance policy against all forms of bribery and corruption which complements the MISC Code of Business Conduct and Ethics (CoBE). • Ethical Investment Market Bursa Malaysia launched the FTSE4Good Bursa Malaysia Index on 22 December 2014 with MISC as an index constituent. This index that measures the Environmental, Social and Governance (ESG) performance of public listed companies will provide the opportunity for socially responsible investors to selectively invest in organisations with responsible and ethical business practices. • Global Energy Prices Oil prices have been steadily decreasing since Quarter 3, 2014 and industry experts have predicted that prices will remain low for the time being. Despite weak demand and rising supply, there have been some upsides for the shipping industry as tanker rates have strengthened due to lowered oil prices. The Group will continue to closely monitor global energy prices and evaluate its impact on the business. • Social Responsibility Good corporate citizenship continues to remain one of the areas of priority for the Group. Our focus on education and youth development continue to carry on through the various initiatives and projects conducted throughout the year. These matters will continue to stay on the Group’s agenda as the year progresses to ensure that all aspects will be looked into for our competitiveness in the marketplace and at the same time, in meeting the expectations of our wider stakeholders. CODE OF BUSINESS CONDUCT AND ETHICS (CoBE) As part of efforts to strengthen the Code of Business Conduct and Ethics (CoBE) practiced at MISC and its subsidiaries, the MISC Anti-Bribery and Corruption (ABC) Manual was rolled out in 2014 to further emphasise the Group’s zero tolerance policy against all forms of bribery and corruption. All employees were provided with a copy of the ABC Manual where its contents provide guidance and strict provisions that specifically address MISC’s policies regarding entertainment and corporate hospitality, dealings with public officials, political contribution and the “No Gift” policy. MARKETPLACE MISC BERHAD - Annual Report 2014 p 96 SUSTAINABILITY REPORT
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