MISC Annual Report 2019

Financial and Physical Project and financial performance include revenue growth, volume, cost/rates, and productivity in terms of net profit generated. It can also include other financial measures such as total shareholder value, taxes, and dividends, providing value through access to capital and performance of the company in different areas, across different markets, to create an overview of the value across different markets. Social and Relationship Customer satisfaction includes customer experience and satisfaction with the goods and services delivered. Value is created through enhancement of the brand, increasing customer retention, and thus increasing confidence from business partners, and attracting new associations. Customer satisfaction Capitals Affected Description Material Matters Human Conducting business responsibly entails taking into consideration Environment, Social and Governance (ESG) factors in decision-making, dedicating proportionate resources to health, safety, and the environment, encouraging the communication of intangible value drivers such as strategy, stakeholder relationships, innovation capacity, and employee development. This also includes having clear governance structure, with transparency of who is in charge of committees and what the committees do. Corporate values and ethics drive strong corporate governance and a dedication to sustainable strategy. Managing material matters such as integrity, reputation, ethics, loyalty, accountability and entrepreneurship in turn develops the organisation’s brand and relationship with stakeholders. Values and governance Attracting and retaining a skilled workforce entails efforts for employees to gain knowledge and skills, which is critical in increasing efficiency and effectiveness, as well as workplace productivity. Skilled workforce Natural This material matter identifies processes, standards and capabilities in place to reduce greenhouse gas emissions, fuel emissions, and energy consumption (including investment in renewable energy), and the ability to take advantage of opportunities and cope with the risks and consequences of climate change. Climate change Risk identification and management is critical to creating value over time to achieve its goals at the lowest cost, the most effectively, by providing confidence to stakeholders. Risk assessments and management as a material matter includes managing financial risks (economic impacts), strategic risks, innovation risks, governance risks, operational risks and regulatory risks. Risk management Project and financial performance Natural This material matter identifies processes, standards, and capabilities in place to ensure clean oceans, reducing marine pollution from sea based and land-based sources, dumping, and reducing oil and hydrocarbon spillages and strives to increase and preserve biodiversity and the ecosystem around them. Minimising impact allows the value of resources to be maintained, thus allowing the continuous utilisation of these ecosystem services towards further value creation. Human Diversity and inclusion illustrate efforts to promote the social and economic inclusion of all employees, regardless of gender, sexuality, race, age, disability, ethnicity, religion, economic, or other status. Diversity and inclusion Intellectual Making investments to keep up with rapid changes in the technology and capital market environment towards improving working tools, techniques and apply technology in developing innovation. This can include undertaking research, development and deployment of products, services and business models, innovations, and patented technologies. Data analysis is rapidly changing the availability of information, allowing companies to respond to changes more rapidly, and increase efficiency and productivity. Efforts to manage this material matter could include a commitment to digitisation and innovation of digital applications. Digitalisation and innovation Intellectual and Human This material matter involves the knowledge and expertise of senior members, and relies on their experience to making informed decisions, in order to maintain competitiveness and performance in a rapidly changing environment. Research and knowledge allow the company to react to trends in the marketplace, to mitigate risk and optimise returns. Business knowledge and expertise Human and Social and Relationship This material matter considers efforts in reducing the risk of incidents by encouraging a compliance culture, implementing reporting systems, providing support and resources to employees, regularly auditing systems and processes, establishing policies, complying with health and safety standards to mitigate risks, prevent any incidents as well as investigating all incidents that occur. Health and safety Human A measure of employee engagement that leads to value creation through higher service, better customer satisfaction, increased sales and profitability and improved shareholder returns. Employee engagement Ocean health Natural Managing natural resource use which includes water and waste management as a material matter to enable utilisation of resources efficiently and making the most out of resources used while reducing waste, including moving towards more efficient resource flows and sourcing from sustainable supply chains, increasing energy efficiency, and increasing water-use efficiency. Natural resource use Capitals Affected Description Material Matters Anchoring Sustainability@MISC Financial Intellectual and Human 167 166 OUR SUSTAINABILITY MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019