MISC Annual Report 2018

HIGHLIGHTS OF THE YEAR OUR BUSINESS OUR LEADERSHIP OUR PERFORMANCE OUR COMMITMENT TO SUSTAINABILITY OUR GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION 50 TH ANNUAL GENERAL MEETING 147 MISC BERHAD ANNUAL REPORT 2018 146 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 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. The process took place for the most part of 2016, with a final endorsement and approval achieved in December 2016 and is recognised as the initiative for the first year of the five-year Sustainability Strategy roadmap. It included the planning and development of strategic initiatives for each of the six sustainability pillars. The year 2017 and onwards are the years of the formal roll out and implementation of the various initiatives, with targets to be achieved by 2020. In deriving MISC’s Sustainability Strategy, the work and processes conducted were indeed thorough, comprehensive and voluminous, to ensure an effective and efficient plan that is considerate of materiality, meaningful, substantial and relevant to the Group. The following table presents a summary of the overall process, from beginning until the final derivation and implementation of MISC’s Sustainability Strategy. SUSTAINABILITY OVERVIEW & MILESTONES STAGES STEPS DETAILS 1. Identification of Material Issues and Engaging Internal Stakeholders 1. Identifying material issues based on strategic elements • Consolidating findings from internal assessment, stakeholder engagement • Categorising material issues 2. Engaging internal stakeholders within the Group (First Workshop) • Workshop on sustainability • Sharing of material issues and findings derived from Step 1 • Sharing of best practices and examples from other organisations 2. Developing Action Plans 3. Agreement and prioritisation of material issues with internal stakeholders (Second Workshop) • Discussion with internal stakeholders to identify material issues based on sharing of findings • Stakeholders to brainstorm and identify potential solutions to address material issues 4. Development of Action Plans (Third Workshop) • Internal stakeholders to present proposed solutions and actions plans (short, medium, long-term) to address material issues, forming MISC’s Sustainability Strategy 5. Approval of MISC’s Sustainability Strategy • Presentation of MISC’s Sustainability Strategy to President/Group CEO and the Management Committee for approval and endorsement 3. Implementation of Sustainability Strategy 6. Implementation of MISC’s Sustainability Strategy • Derivation of measurable KPIs from MISC’s Sustainability Strategy - channelled back to relevant stakeholders/departments • Inclusion of these KPIs into Scorecards 7. Reporting and Monitoring Strategy Implementation • Public reporting on the development of MISC’s Sustainability Strategy in MISC’s Sustainability Report • Monitoring of strategy implementation and performance Endorsed in December 2016 and formally rolled out in 2017, the MISC Sustainability Strategy comprises our six identified sustainability pillars: This strategy act as our five-year roadmap to guide us further in conducting business as a responsible corporate citizen in a way that will enhance our social integrity, improve our environmental stewardship and create economic value for our stakeholders. Together, MISC’s Vision and Mission, the MISC 2020 Corporate Strategy and our Sustainability Strategy will act as our compass for the Group as we steer towards a successful journey. SHAREHOLDERS CUSTOMERS EMPLOYEES ENVIRONMENT COMMUNITY GOVERNANCE & BUSINESS ETHICS 18 SUSTAINABILITY STRATEGY WORKSHOPS conducted across 6 sustainability pillars The SUSTAINABILITY STRATEGY was endorsed and APPROVED IN DECEMBER 2016 SUSTAINABILITY STRATEGY was developed based on a MULTI-LAYERED, MULTISTAKEHOLDER approach SUSTAINABILITY STRATEGY is RELEVANT AND APPLICABLE across the group ...................................................................... ...................................................................... ......................................................................