MISC Annual Report 2019

55 54 OUR VALUE CREATION STORY MISC BERHAD PEOPLE. PASSION. POSSIBILITIES ANNUAL REPORT 2019 KEY FOCUS AREAS MATERIAL MATTERS STRATEGIC PRIORITIES LNG Asset Solutions • Grow shipping business including third party business portfolio • Develop non-conventional LNG solutions to broaden our revenue sources Petroleum & Product Shipping • Secure more time charters for conventional fleet • Expand niche market assets such as shuttle tankers with time charters • Project and financial performance • Risk management • Values and governance • Customer satisfaction • Values and governance • Skilled workforce • Employee engagement • Health and safety • Climate change • Natural resource use • Ocean health • Skilled workforce • Ocean health • Employee engagement Offshore Business • Explore acquisition opportunities selectively arising from asset divestments by oil & gas players globally • Pursue organic growth and expand international footprint Marine & Heavy Engineering • Develop engineering-related solutions and larger recurring income base to diversify revenue and reduce the impact on cyclicality of the business • Manage cost and process efficiency Shareholders • Broaden engagement activities to give greater visibility to investors • Increase standard of customer experience through efforts to exceed their expectations • Improve customer perception and interaction • To embed business ethics and ethical conduct as a cultural component within the organisation • Work towards formal inclusion of sustainability on the Board agenda • Focus on succession planning to ensure a sustainable talent pipeline is in place across the job levels in MISC • To have a competent and capable workforce through a structured and holistic employee developmental process • Cultivate a healthy workforce • Explore viability of low emission solutions for positive long-term environmental impact • Proactively manage our environmental footprint, as well as inculcate environmental consciousness amongst our employees • Invest in the next generation via well-established and fully functioning programmes that promote education and awareness amongst the youth towards becoming the next leaders in the industry and in contributing towards their future development • Organise various community investment activities at MISC Group offices, locally and internationally • Collaborate with the maritime community in shaping the future of the seaborne trade To drive sustainable value for our shareholders To exceed the expectations of our customers To promote individual and team excellence of our employees To care for the environment and operate responsibly To create a positive difference to the lives of communities To maintain a sustainable governance and business ethics framework More information on how we determined our material matters can be found in the Anchoring Sustainability@MISC section on pages 164 to 169. OUR STRATEGIC FOCUS OVERALL GROUP STRATEGY AND TARGET MISC SUSTAINABILITY PILLARS VISION To consistently provide better energy related maritime solutions and services 2020 TARGETS To achieve a sustainable level of secured profit by 2020 and a sustainable return on average capital employed (ROACE) of more than 10% by 2020 EMPLOYEES ENVIRONMENT SHAREHOLDERS CUSTOMERS COMMUNITY GOVERNANCE & BUSINESS ETHICS