MISC Annual Report 2019

Safety We achieved a commendable safety performance of Lost Time Injury Frequency Rate (LTIF) at 0.10 and Total Recordable Case Frequency (TRCF) at 0.27 in 2019 with zero fatalities. A key part of the incident investigation procedure is the identification of both the immediate and root causes. The dominant factor in root causes for incidents in our operations continues to be issues around risk management, including inadequate hazard identification, application of risk controls, communications and change management. In response to this, we further enhanced our Contractor Intervention Plan within the MISC Group. To reduce the number of occupational hazards that might lead to serious injuries, MISC has standardised the Unsafe Condition Unsafe Act (UCUA) reporting within the Group. We strongly believe that the safety of an organisation is the responsibility of not just individuals, but all parties. The UCUA standardisation promotes the ‘See It, Own It’ culture. In addition, MISC has started reporting Process Safety KPIs at HSSE Council level with the overall aim of proactively assessing the health of barriers that manage the risk of Process Safety Events (PSE), particularly, those that could result in major incidents. Awards and Recognition MISC received Gold Merit Award at the Malaysian Society for Occupational Safety and Health (MSOSH) Awards 2018 under the Petroleum, Gas, Petrochemicals and Allied Sectors category. The award recognises MISC’s excellent occupational safety and health practices. In addition, MISC bagged two Gold Class award for MaMPU1 and FSO Orkid . MHB received IECEx Certification recognising its safety compliance in hazardous areas by SIRIM QAS International. 65 650 6,766 steps a day with a total of teams and individuals Group walking challenge with an average of hours of group workout hours of Muay Thai classes 50 20 health screening across the Group 4 health talks on colorectal cancer and drug awareness, autism, stroke, diabetes and mental wellness 5 MISC Group’s Safety Performance Working hours Total Recordable Case Frequency Lost Time Injury Frequency 55,776,643 48,200,000 45,060,000 49,273,000 2016 2017 2018 2019 0.36 0.29 0.22 0.27 0.11 0.10 0.07 0.10 A total of audits were conducted at our operations and contractors facilities 17 As a founding partner of the Global Maritime Forum – an international not-for-profit organisation committed to shaping the future of global seaborne trade to increase sustainable long-term economic development and human wellbeing – with a seat on its Advisory Council, we are today in a position to help influence how HSSE is practiced for the sustainability of the industry as well as how we operate in the future. MISC continues to benchmark ourselves against other industry players to ensure that our HSSE performance is consistently in the top quartile standards. Governing how we practice HSSE is the MISC Group HSSE Council that reports to the Board of Directors and is chaired by the President/ Group CEO. Members consist of Vice Presidents and Chief Executive Officers of all the subsidiaries along with the Head of Group HSSE. The council meets every month to provide stewardship and oversight on all HSSE related matters that includes group-wide HSSE Policy, strategy, initiatives, systems, targets, performance and management review. Effective execution of key strategies and associated issues that affect group-wide HSSE key result areas, risk management, internal controls as well as guidance on the way forward are also discussed at the Council level. HSSE committees have been established within some of the larger businesses segments to manage HSSE performance at their own level, while HSSE practitioners within the Group meet every quarter during which they can enhance their professional knowledge to ensure effective practice and entrenchment of a strong HSSE culture. Establish balanced Consequence Management for Contractors and Staff Structured Consequence Management implementation in 2020 Consequence Management Emphasise on dynamic, comprehensive and close-loop risk management process Annual update of HER and JHA based on the re-assessment of hazards Risk Management Implement focused HSSE campaigns and programme based on analytics Bi-annual focused HSSE campaigns Focused Interventions PMT as the change agent for behavioural safety through Advanced Safety Audit (ASA) Observe Communicate Commit Group-wide ASA implementation and trained Change Agents Partnership Make requirement for Contractor Leadership Team to accompany Contractor Management Site Walkabout One Contractor Management Walkabout every month Leadership Commitment How do we ensure Contractors HSSE is managed effectively and contractors related incidents are reduced? Deliverables Intervention Plan Contractor HSSE Management Intervention Plan Health MISC introduced the b-HSSE campaign in 2018 to improve the general health and well-being of employees. The campaign encourages them to be more physically active, improve their intake of healthy nutrition and develop a healthier mind. In 2019, the campaign was complemented by the Move, Mind, Munch (3Ms) programme to further focus on their health and well-being. Various activities were also conducted for employees that included group workouts, Muay Thai classes, group walking challenge, heath talks, monthly health advisories and healthy food campaigns across the Group. In 2019, two health risk assessments were completed at our facilities in Sg Udang, Melaka and Sabah Oil and Gas Terminal (SOGT) in Sabah. Management Discussion & Analysis Operating Safely and Sustainably 141 140 OUR BUSINESS PERFORMANCE MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019