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 149 MISC BERHAD ANNUAL REPORT 2018 148 SHAREHOLDERS WORKING COMMITTEE CUSTOMERS WORKING COMMITTEE ENVIRONMENT WORKING COMMITTEE COMMUNITY WORKING COMMITTEE EMPLOYEES WORKING COMMITTEE GOVERNANCE & BUSINESS ETHICS WORKING COMMITTEE SUSTAINABILITY WORKING COMMITTEES SUSTAINABILITY GOVERNANCE The governance of sustainability issues and matters is a fundamental consideration, as we continue our efforts in embedding sustainability principles into our decision-making process and operations as a whole. We seek to fulfill our responsibilities and commitments to our five key stakeholders - Customers, Shareholders, Employees, Environment and Community – via progressive governance and management practices and guided by our Mission and MISC Sustainability Strategy. With the aim to fortify sustainability governance across the Group, sustainability elements have been incorporated into the MISC Board Charter to ensure that the management of matters relating to sustainability begins at the highest level within the Group. This is supported by a multi-pronged approach through the Management Committee (MC), the MISC Group Health, Safety, Security and Environment (HSSE) Council and the Sustainability Working Committees (SWC). Working committees have been set up for each of the six sustainability pillars (Customers, Shareholders, Governance & Business Ethics, Employees, Environment and Community), with specific focus on ensuring the successful delivery and implementation of the respective strategies and initiatives for each pillar. SUSTAINABILITY GOVERNANCE FRAMEWORK This cross-functional approach is required to coherently address and manage sustainability matters and identified material issues arising across all our businesses and location of operations. Collaboratively, these committees are involved in decision making processes and in setting the tone for our sustainability direction and initiatives, as well as addressing risks, communications and stakeholder management. HEALTH, SAFETY, SECURITY AND ENVIRONMENT (HSSE) COUNCIL MANAGEMENT COMMITTEE (MC) The Council serves as a platform to discuss on effective execution of key strategies and associated issues that affect group-wide HSSE key result area, risk management, internal controls as well as provide guidance on the way forward. SUSTAINABILITY WORKING COMMITTEES Following the endorsement of MISC Sustainability Strategy, SWCs were established for each of the six sustainability pillars. These SWCs are led by a champion – a member of MISC MC – and are comprised of key focal persons representing the various business units, service units and subsidiaries within the Group. Senior Management representation at the respective working committees signifies the Group’s commitment towards ensuring the successful implementation of the strategy. The purpose of the Sustainability Champion and the respective SWC members is to have active participation in the planning, coordination and implementation of the programmes and initiatives relevant to MISC Sustainability Strategy. Together, the Sustainability Champion and SWC members will work in synchrony to ensure the effective and efficient implementation of the strategy. All initiatives and programmes under the strategy will be monitored and measured periodically, for the purpose of tracking progress and addressing any concerns/issues that may arise. Progress updates will be provided to the MC to ascertain their inputs and guidance to ensure a successful process of implementation and achievement of objectives set out under the MISC Sustainability Strategy. Additionally, in support of the overarching sustainability governance process, the Group and also the various businesses within, have various internal and external mechanisms and systems in place for the management of specific sustainability related matters. We are continuing our ambitions to streamline these practices into a more cohesive and holistic approach. The following table highlights some of the policies and systems in place that support the sustainability governance process and the management of specific sustainability related matters. CATEGORY POLICIES AND GUIDELINES Governance & Business Ethics • Code of Conduct and Business Ethics (CoBE) • MISC Anti-Bribery and Corruption (ABC) Manual • Whistleblowing Policy • Gift and Entertainment Policy • MISC Corporate Privacy Policy • Conflict of Interest • Competition Law • Economic Sanctions • Personal Data Protection Act (PDPA) Health, Safety, Security and Environment • MISC Health, Safety and Environment (HSE) Policy • MISC Security Risk Management Policy • HSE Requirements for Contractors • MISC Drug and Alcohol Policy • MISC Safety Rules • ISO 9001:2008 Certified Quality Management Systems • OHSAS 18001:2007 Certified Occupational Health & Safety Management Systems • ISO 14001:2004 Environmental Management Systems • ISO 50001:2011 Energy Management Systems Employees • Performance Management System • International Labour Organisation (ILO) Maritime Labour Convention 2006 • MISC Employee Handbook SUSTAINABILITY OVERVIEW & MILESTONES MANAGEMENT COMMITTEE The MISC MC is the highest decision-making authority in the Sustainability Governance Framework and is led by our President/ Group CEO. The MC also comprises all Vice Presidents and CEOs of selected subsidiaries. MISC GROUP HSSE COUNCIL MISC Group HSSE Council is the highest authority for HSSE, responsible to provide stewardship and oversight to all HSSE related matters that includes group wide HSSE Policy, strategy, initiatives, systems, targets, performance and management review. It is chaired by the President/Group CEO and comprises all members of the MC, Head of Group HSSE and CEO of selected subsidiaries.