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 159 MISC BERHAD ANNUAL REPORT 2018 158 PROGRESS MOVING FORWARD • Proposal for a structured and dedicated community investment programme with focus on youth as well as employee volunteering has been presented and endorsed by the Management Committee. • Formalisation of a dedicated community investment unit to undertake MISC Group community investment programmes. • Formation and launch of an in-house volunteering arm. • Encourage active engagement with school students to enhance their leadership skills covering communication, teamwork, integrity and entrepreneurship. MISSION OBJECTIVES To create a positive difference to the lives of communities • Investing in the next generation SUSTAINABILITY STRATEGY UPDATES Our primary focus of value creation for the wider community is through education, with an emphasis on maritime education. Our strategic objectives are aligned to our mission where we will focus our investment on the next generation through education. The initiatives include the promotion of upskilling and expansion of career opportunities for the youth, and raising knowledge and awareness of our industry. COMMUNITY 2020 TARGETS 11. Investing in the next generation via education Well-established and fully functioning programmes that promote wholesome youth development via education and awareness towards becoming the leaders with global citizen mindset OUR SUSTAINABILITY FOCUS 2018 ENVIRONMENT The environment is one of MISC Group’s six sustainability pillars and is our Sustainability Focus for 2018. Over the year, we intensified our green fleet renewal by naming two state-of-the-art dual-fuel petroleum tankers and taking delivery of two LNG carriers and four more petroleum tankers with enhanced green footprints. We also made progress on key environment initiatives, including carbon reduction. This progress was reflected in our improved 2018 rating to 3.5 on the FTSE4Good Bursa Malaysia Index, which supports investors in making environmental, social and governance related investments in Malaysian listed companies. It also encourages best practice disclosure and supports the transition to a lower carbon and more sustainable economy. MISC is one of six strategic partners of the Global Maritime Forum, an international not-for-profit organisation committed to shaping the future of global seaborne trade in order to increase sustainable long- term economic development and human wellbeing. As a strategic member, we are at the forefront of the decision making process on the transformations required to address key environmental challenges facing the maritime industry. MISC is also a signatory to the call for action in support of decarbonisation and the United Nations International Maritime Organisation (IMO) strategy to cut maritime greenhouse gas emissions in half by 2050. To this end, we set our own carbon intensity targets, to be achieved by 2020 from a 2016 baseline. These targets are a 6% reduction in the LNG fleet, a 9% reduction in the petroleum fleet and a 1% reduction in the product fleet. Our processes to embed environmental considerations into MISC’s business agenda and operations were evaluated and improved in 2018. The Corporate Procedure on Environmental Mainstreaming was rolled out to provide guidance on the processes that need to be enhanced and to provide a systematic approach for the implementation of environmental mainstreaming practices within MISC’s operations. Action plans have been established and the monitoring of implementation is currently ongoing. One emphasis is on the capability and competency of MISC personnel operating pollution controls systems in our operations.