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 163 MISC BERHAD ANNUAL REPORT 2018 162 UNITED STATES CARIBBEAN SEA AREA (NO x SO x and PM) BALTIC SEA ECAs Sulphur Limits 0.50% Hong Kong 0.10% Turkish Ports 0.50% China (Pearl River Delta, Yangtze River Delta and Bohai-Rim Waters) 0.10% Baltic Sea, North Sea, North America, US Caribbean 0.10% European Union Ports NORTH AMERICAN SEA AREA (NO x SO x AND PM) , NORTH SEA (SO x ) New ECAs ECOPLEDGE, ELECTRICITY AND WATER MISC also achieved a 13% reduction in electricity consumption at our headquarters in Kuala Lumpur and our maritime academy in Melaka in 2018 by fitting LED lighting in these buildings. Feasibility studies on replacing fluorescent lamps on LNG vessels are also in progress. Water saving initiatives continued on our LNG and petroleum fleet, by identifying and fixing water leaks, consolidating laundry washes and building awareness with ‘Conserve Water’ notices posted in bathrooms and near public taps. From the initiatives carried out, our fleet collectively reduced its freshwater consumption by 3% in 2018 compared to 2017 which equates to approximately 9,200m 3 of water saved. This amount of water saved is enough to fill close to four Olympic size pools. SULPHUR AND OZONE EMISSIONS The use of cleaner fuels in shipping is imperative in order to reduce the harmful effects of ship exhaust emissions, primarily sulphur dioxides, upon human health and the ecosystem. MISC fully supports the decision by IMO to reduce the permitted sulphur content in ships’ fuel in order to reduce the amount of sulphur dioxide emissions into the atmosphere. Our vessels operating in existing Emission Control Areas (ECA) around North America and Europe with a sulphur cap of 0.1% are already use low sulphur marine fuels in these areas. New IMO regulations for a Global Sulphur Cap of 0.5% for all other areas will come into effect on 1 January 2020 and MISC is actively implementing solutions to ensure cost effective compliance. OUR SUSTAINABILITY FOCUS 2018 ENVIRONMENT WASTE MANAGEMENT MISC pursues active efforts to reduce, recycle and recover our hazardous and non-hazardous wastes. Overall generation of wastes from our vessels (excluding cargo residues) reduced by 13% in 2018 compared to 2017 which equates to 923m 3 less garbage generated. REDUCTION on overall generation of WASTES from our vessels which equates to 923m 3 less garbage generated 13 % Waste minimisation programmes include initiatives introduced to substitute cotton rags with recyclable absorbent paper, the introduction of electronic manuals, the purchase of provisions in bigger volume to reduce packaging, and where possible the return of plastic wrappings to suppliers. Efforts to reduce waste generation were also extended to meetings and events organised by MISC. Effective from 1 October 2018, disposable plastic drinking bottles were no longer allowed, except for events where safe drinking water supply was not available or was insufficient. These events include meetings, training and conferences held externally. In these circumstances, staff are required to make arrangements for the venue provider to serve water in pitchers or water dispensers. IMO 2020 SULPHUR CAP 2018 6 LNG VESSELS have been FULLY MODIFIED 2019 - 2020 8 petroleum tankers to be INSTALLED WITH SCRUBBERS SO x .............................. REDUCTION in FRESHWATER CONSUMPTION ........................................................ REDUCTION in ELECTRICITY CONSUMPTION at our headquarter and Maritime Academy 13 % 3 % = 9200m 3 which equates to 4 Olympic Size Pools Full modification to comply with IMO 2020 Sulphur Cap has been completed on six LNG vessels. In addition, eight petroleum tankers have been identified for scrubber installation in 2019 and 2020. All other petroleum vessels will use low sulphur compliant fuel and are also capable to use low sulphur marine gas oil whilst operating in ECA areas. In 2018, 48% of the total fuel consumed by our fleet for its propulsion and on-board energy requirements comprise of LNG and low sulphur fuels. MISC closely monitors refrigerant consumption. Comparing 2018 with the previous year, the Group total refrigerant consumption reduced by 21% while a reduction of 48% in consumption of ozone depleting type refrigerant was achieved. Around 90% of the refrigerants used on our vessels are already of non-ozone-depleting-type. Refrigerant consumption is closely monitored and Refrigerant Management Procedures are implemented on all our vessels to identify and minimise releases and leakages from on-board installations. Countries where MISC operate are all party to the Montreal Protocol and must incrementally decrease hydrochlorofluorocarbon (HCFC) consumption, culminating in a complete HCFC phase-out in 2030. Ahead of the required phase-out date, our maritime academy has also replaced about 35% of its air conditioning units to the non-ozone depleting type.