MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 54 SUSTAINABILITY@MISC SUSTAINABILITY TRENDS & CHALLENGES Sustainability Trends and Challenges Summary Our Position Energy Efficiency • The shipping industry is continuously exploring ways to further reduce fuel consumption, improve ships’ energy efficiency management and reduce their carbon footprint. • MISC Group continues to undertake efforts to improve efficiency through various energy saving initiatives, apart from adhering to IMO regulations. This includes the : − Development of five new MOSS-Type LNG Carriers incorporating “Green” technologies. − International Organisation for Standardisation (ISO) 50001 certification for the Group’s floating assets. − Application of fuel saving technology on all our vessels. Climate Change • The impact of climate change to the maritime sector will require industry-wide attention beyond climate mitigation efforts, which are currently focused on reducing carbon emissions. • The contribution of international shipping to global carbon emissions may be low, but these emissions are likely to grow if remain unchecked. • There is a compelling case to take action to prepare for the possible impacts of climate change, as well as mitigating measures, in line with global commitments and expectations such as the 2015 United Nations Climate Change Conference (COP 21) Paris Agreement. • Climate change mitigation and adaptation continues to be one of our priority areas, with emphasis on our shipping business as a significant portion of carbon emissions are derived here. • We have adopted several energy efficiency measures as our continued commitment towards mitigating our GHG footprint. • Climate change mitigation is one of our commitment under the environment pillar of the MISC Sustainability Strategy, where we are committed towards the reduction of carbon emissions and in the setting of targets. • Carbon reduction targets have been established for our LNG, Petroleum and Product fleet. Regulations and Legislations • The shipping industry will continue to face new regulatory requirements due to public expectations (as expressed by Governments through the regulatory process at IMO). • Increasing pressure on global resources will lead to demands for higher sustainability standards. • Regulations that protect the environment, and labour or community rights, will continue to be a significant reality for the shipping industry. • Growing public awareness and demand for tougher laws meant that regulatory bodies are under pressure to be stricter with enforcement. • We proactively keep abreast of maritime legislations and unilateral decisions of maritime nations. • As the main shipping operator in Malaysia, we participate in numerous government initiatives including representation during IMO sessions. • We also subscribe to classification societies, who in turn provide advice on legislative requirements and proposed measures to meet these requirements.