MISC Annual Report 2017

83 Strategy & Performance We established the following carbon intensity reduction targets to be achieved by our fleets by 2020 : LNG Shipping - 6%, Petroleum Shipping - 9% and the Product Shipping - 1%. This underscores our strong commitment to aligning with national and global agendas on greenhouse gas reduction. We also implemented a number of initiatives under the Governance & Business Ethics pillar that helped propel us forward in this area. As part of the MISC Group Compliance and Ethics Programme – we successfully promoted the MISC Code of Conduct and Business Ethics (CoBE) and Whistleblowing principles through our “See, Speak, Support” Campaign utilising a variety of communication platforms. The inaugural MISC Integrity Day at Menara Dayabumi on 24 November 2017 served as an effective platform to strengthen our workforces’ understanding of the key objectives of the CoBE and to formalise the commitment from our Senior Management team via the signing of a Corruption Free Pledge. On the People front, our Human Resource division is on course with its five-year masterplan to promote individual and team excellence within the Group. The plan encompasses two main focus areas, namely succession planning and employee competency development for both leadership and functional skills. For more updates on the progress made by each pillar under the MISC Sustainability Strategy, please refer to the Sustainability@ MISC section on pages 38 to 55 of this Annual Report. Our sustainability journey has just begun and there is much more to be accomplished. As a conscientious corporate citizen, we remain resolute in fulfilling our commitment towards the material aspects of our business and our stakeholders. As MISC moves to adopt the Integrated Reporting <IR> Framework, we will ensure that it aligns with our current mechanisms and aspirations for sustainable growth as well as our focus on creating value as per the six capitals set out in the framework. We have always been operating based on a values-based process and system and it is now more a matter of formalising and disclosing the details with the guidance of the <IR> Framework. We aspire to be in a position where we can be fully transparent not only in our disclosures but operationally. As we make the transition towards the <IR> Framework, we will now no longer be producing standalone Sustainability Reports as we did in the previous years, as all information relating to sustainability will be assimilated within the <IR> Framework. This also affirms our commitment to conserving the environment by reducing paper usage and printing. The Group’s net debt- to-equity ratio increased marginally to 0.16 times as at 31 December 2017 NET DEBT-TO- EQUITY + 0.16 CARBON INTENSITY REDUCTION TARGETS TO BE ACHIEVED BY OUR FLEETS BY 2020 FROM A BASELINE IN 2016 LNG SHIPPING 6% PETROLEUM SHIPPING 9% PRODUCT SHIPPING 1% PRESIDENT/GROUP CEO ’ S REVIEW