MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 40 SUSTAINABILITY@MISC MATERIALITY The process took place for the most part of 2016, with the final endorsement and approval achieved in December 2016. It is recognised as the initiative for the first year of the five-year Sustainability Strategy roadmap, which included the planning and development of strategic initiatives for each of the six sustainability pillars. 2017 onwards are years of the formal roll- out and implementation of the various initiatives, with targets to be achieved by 2020. The process of deriving the material areas upon which the strategy was based on is as follows : MATERIALITY AND PROCESS FOR DERIVING THE MISC SUSTAINABILITY STRATEGY The identification of material issues was very much aligned with the development of MISC Sustainability Strategy (referred to as ‘the strategy’). The material issues identified are meant to be applicable and relevant until the year 2020 (the final year of the current strategy roadmap), whereupon another materiality assessment will be conducted. The five-year strategy is essentially the process and tool in managing the identified material areas. In deriving the strategy including actions plans, several steps, assessments and engagement sessions had to take place, for the purpose of discovering and identifying issues that were most material to the organisation across the six identified sustainability pillars. This is based on the understanding of gaps and issues that are most pressing to the organisation from a sustainability perspective and the understanding of best practices based on sustainability leadership. IDENTIFICATION OF MATERIAL AREAS Benchmarking with peers from the shipping industry To provide a comparison of MISC’s sustainability performance to that of our peers. Workshops with key focal persons across various functions within the Group To assess and agree collectively on the identified material areas and prioritise key issues to be addressed for each sustainability pillar. Internal assessment with key personnel Internal stakeholder engagement with key senior personnel across the Group. Benchmarking with internationally recognised best practicing sustainability organisations To provide a comparison of MISC’s sustainability performance to that of other multinational, sustainability best-practicing organisations. Stakeholder engagement Engagement exercise with selected personnel from across the Group and external parties. 1 3 5 2 4