INTEGRATED ANNUAL REPORT 2024 116 117 SECTION 10: ANCHORING SUSTAINABILITY www.miscgroup.com MISC BERHAD Anchoring Sustainability At MISC, sustainability reflects our commitment to environmental stewardship and our responsibility to society. Anchored by MISC’s Sustainability Strategy and a rolling business plan aligned with 11 relevant SDGs, we continuously refine our approach to meet evolving customer needs, regulatory requirements and stakeholder expectations, driving progress toward our MISC 2050 Vision. Over the year, we reinforced sustainability integration by embedding relevant KPIs across our businesses, rigorously tracking performance and fostering a sustainability-driven culture. Our adaptability remains key to long-term value creation and is critical in achieving our Net-Zero target by 2050. With deep expertise in the maritime industry, we continue to drive both business and sustainability priorities, recognising their essential role in strengthening our resilience. SUSTAINABILITY GOVERNANCE STRUCTURE AT MISC GROUP Board Committees Management Committees Corporate Functions BOARD OF DIRECTORS PRESIDENT & GROUP CEO CROSS FUNCTIONAL WORK GROUPS Business Units/ Subsidiaries Human Resource Strategy and Planning Unit Compliance Focal Champions Governance and Assurance Sustainability Focal Champions HSSE Functions Human Resource Group Health, Safety, Security & Environment Sustainability Department Project Risk Assessment Sub-Committee Board Nomination & Remuneration Committee Board Sustainability & Risk Committee Board Audit Committee Legal Group Strategy & Sustainability Management Risk Committee Executive Leadership Team People Development Council Health, Safety, Security, Environment & Sustainability Council Procurement/ ICT/ Finance SUSTAINABILITY GOVERNANCE At MISC, we regard strong governance as a cornerstone of our corporate commitment and a key driver of sustainable business practices. Recognising that today’s decisions shape the future, we are dedicated to embedding robust governance principles that support long-term sustainability. Our governance framework is founded on transparency, accountability and ethical conduct across all operations. By integrating financial and ESG considerations into our decision-making processes, we aim to foster responsible business practices and create enduring value for our stakeholders. Anchoring Sustainability Board of Directors • Guides the Group’s strategic vision and integrates sustainability into the business strategy • Oversees sustainability reporting, ESG risk management and compliance with regulations • Advocates responsible practices and innovation, embedding sustainability into governance processes • Aligns sustainability goals with long-term value creation and the Group’s mission Board Sustainability & Risk Committee (BSRC) • Oversees the implementation of the sustainability strategy and addresses ESG issues, including climate change, cybersecurity and human rights • Assesses sustainability initiatives quarterly, reviewing progress, risks and alignment with business objectives • Evaluates performance metrics and ensures compliance with regulations, fostering continuous improvement • Allocates resources for sustainability, approving budgets and investments to achieve strategic goals • Examines key strategic and operational risks identified during quarterly Management Risk Committee (MRC) meetings, including enterprise-level risk appetite and mitigation plans Board Audit Committee (BAC) • Oversees the internal control framework and conducts quarterly reviews of ESG matters, including Health, Safety, Security and Environment (HSSE), business ethics and whistleblowing/ grievance cases • Reviews updates on whistleblowing and grievance reports, along with compliance and ethics matters • Assesses the Group Health, Safety, Security and Environment (GHSSE) Audit and Assurance Bi-Annual Reports, focusing on maintaining the efficiency and effectiveness of vessels and floating assets Board Nomination & Remuneration Committee (BNRC) • Reviews ESG performance as part of the Group scorecard and links it to remuneration policies • Conducts performance appraisals for the Group and the President & Group CEO (PGCEO), covering financial performance, strategic initiatives, operations, HSSE and people development • Makes recommendations to the Board for approval based on performance results against the balanced scorecard
RkJQdWJsaXNoZXIy NDgzMzc=