INTEGRATED ANNUAL REPORT 2024 190 191 SECTION 12: GOVERNANCE www.miscgroup.com MISC BERHAD Board Sustainability & Risk Committee Report SUMMARY OF THE BSRC’S WORK IN 2024 During the year under review, the BSRC carried out the following activities in discharging its functions and duties: Risk Management • Reviewed the Financial Risk Appetite Setting (FRAS) FY2024 indicators for the Group. • Received quarterly updates on the FRAS indicators for the Group. • Reviewed the MISC Risk Register and assessed the primary risk events to ensure all material and strategic risks faced by the Group are managed and addressed. • Assessed the Group’s risk status across the seven (7) risk categories: financial; operational; governance and compliance; health, safety and security; environment; human resource; and cybersecurity, through the ERM quarterly reports. • Assessed the status of the Group’s Risk Appetite, against the approved risk appetite thresholds, covering four (4) key areas: strategic; financial; operational; and legal and regulatory through the ERM quarterly reports. • Reviewed the proposals, strategies and project risk assessments related to proposed participation in new projects/tenders and/or other corporate exercises and provided appropriate recommendations to mitigate any identified risks. • Reviewed Post Implementation Economic Review (PIER) reports for major projects to assess the achievement of project economics when the asset is already in operation. This includes assessing actual economic returns against mandated economic returns during the project approval stage. • Assessed the Group’s HSSE performance through quarterly reports. • Received updates on the status of ongoing tenders, projects and/or transactions. • Reviewed updates on progress of MISC’s investments and provided the necessary steer on the way forward. • Received the performance review report of GAS Fleet. • Considered the provisions of the Occupational Safety & Health Act (Amendment) 2022 (which was enforced on 1 June 2024), its implications on MISC Group, and reviewed the Group-wide gap assessment and action plans. Sustainability • Received quarterly updates on MISC’s sustainability performance in line with MISC Group Sustainability Strategy. • Received the quarterly MISC Sustainability Strategy Progress and Performance Report. • Reviewed and endorsed the MISC Human Rights Policy for the approval of the Board. • Received quarterly performance reports on ESG indicators through the MISC Sustainability Dashboard. • Reviewed MISC Internal Carbon Pricing Framework and Responsible Supply Chain Programme. • Conducted the annual review of the Modern Slavery Statement. • Received update on ESG Ratings Gap Assessment. Compliance and Ethics • Received quarterly updates on compliance and ethics initiatives which cover policy-related matters, communication and training, as well as monitoring and assurance. • Received periodic updates on compliance with MISC’s Regulatory & Legislation Register, employees’ conflict of interest disclosures, as well as other compliance dashboard. Governance • Reviewed the BSRC Report, Statement on Risk Management and Internal Control and Corporate Governance Overview Statement for inclusion in the MISC Integrated Annual Report 2023. • Reviewed the Corporate Governance Report 2023. • Reviewed MISC Group Climate Risks and Opportunities Disclosure in the Sustainability Report 2023. Board Sustainability & Risk Committee Report FOCUS AREAS FOR 2025 The BSRC would continue to provide oversight of the matters under its purview. The key focus for 2025 would include, among others, the further improvement and streamlining of the Group’s ERM programme by consolidating key risks while ensuring the primary risks remain in sight. The BSRC started the year with a review of the establishment of a Corporate Risk Profile which aims to promote deliberation of strategic risks, emerging risks and current risk outlook. The BSRC will also conduct its annual review and periodic monitoring of the MISC Group’s FRAS, Risk Appetite and Risk Register, as well as conducting risk assessments on business proposals and new initiatives and determining MISC’s level of risk tolerance. The BSRC will continue to oversee the alignment of MISC’s sustainability strategy with its business strategy and monitor the progress of MISC’s sustainability performance. Additionally, the BSRC will oversee the improvement of safety practices, raise awareness, and enhance workforce engagement through the “Back to Basics” intervention plan. This plan focuses on four (4) key pillars: leadership, supervision, building psychological safety, and fostering conscious risk awareness through effective communication. These pillars aim to drive a generative HSSE culture where everyone is committed to safety as a core value. The BSRC shall also continue to play a key role in reviewing proposals, strategies, and project risk assessments related to proposed participation in new projects/tenders and/or other new ventures and business opportunities, such as the ongoing corporate exercises on exploring offshore business synergy. DATIN NORAZAH MOHAMED RAZALI Chairperson Board Sustainability & Risk Committee
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