INTEGRATED ANNUAL REPORT 2024 40 41 SECTION 5: VALUE WE CREATE www.miscgroup.com MISC BERHAD Our Integrated Approach to Value Creation We embrace a comprehensive approach to value creation, considering the diverse and interconnected factors that shape our business outcomes. This approach integrates elements such as the operating environment, stakeholder dynamics, risk management, material matters, ESG principles, strategic direction and the allocation of key capitals across the Group. The table below highlights the definitions of these factors and shows how they interconnect within our value creation process. Our performance is closely tied to the global political and economic landscape, which plays a critical role in shaping the energy and maritime sectors. By continuously analysing macro-environmental factors, we identify emerging trends and opportunities. This insight empowers us to refine our strategies, respond effectively to changes and enhance our capacity to create value. Evaluating Our Operating Landscape Please refer to Our Operating Environment on page 52. 1 We recognise that managing the evolving needs of our stakeholders is essential to driving MISC’s sustainable growth. By fostering ongoing dialogue and collaboration with diverse stakeholder groups, we create value while reinforcing our reputation as a trustworthy and reliable partner. Employees Customers Business Partners/Suppliers & Vendors Government/Regulators Shareholders/Investors/Financial Services Providers Communities Media Industry Peers Academic Organisations Trade Associations/NGOs Strengthening Stakeholder Relationships Please refer to Engaging with Stakeholders on page 46. 2 4 5 6 7 The risks and mitigation strategies associated with our material matters and core businesses are guided by our robust risk management framework and strategic priorities. Through continuous monitoring and proactive mitigation efforts, we safeguard the resilience and sustainability of our operations. Monitoring Risks and Mitigation Strategies Please refer to Our Risks and Mitigation Strategies on page 65. 3 Energy Transition and Decarbonisation Risk Cybersecurity Risk Financial Risk Talent Risk Project Delivery Risk Compliance and Regulatory Risk Asset Integrity and Performance Risk Market Risk Health, Safety, Security and Environment Risk Geopolitical Risk Identifying and Prioritise Our Material Matters Embedding Best ESG Practices Integrating Our Strategy Allocating our Key Capitals Our Integrated Approach to Value Creation We have identified material matters—both financial and non-financial imperatives, which encompass ESG considerations that impact our internal and external stakeholders. By developing and implementing targeted strategies, we aim to deliver optimal value in a sustainable and responsible way. Health and Safety Climate Change Energy Management Financial Performance Values, Governance and Business Ethics Human Rights Sustainable Supply Chain Ocean Health Security Talent Development and Retention Waste Management Diversity and Inclusion Digitalisation Cybersecurity Community Investment Our value creation process is dependent on our ability to align our business with sustainability and our climate-related agenda. We focus on fostering long-term value creation by integrating ESG considerations into all our decisions, prioritising transparency and accountability in our actions. Our strategy steers the Group towards achieving short- to medium-term and medium- to long-term targets in alignment with our mission and vision. We aim to strike a strategic balance between sustaining our current business and expanding our new energy portfolio, while pursuing selective, responsible investments to optimise portfolio returns. Key capitals represent the essential inputs and resources that fuel our business. By investing in these six capitals, we effectively execute our strategy and drive sustainable, long-term growth. Physical Capital Essential physical resources and infrastructure that ensure the seamless operation of our business. P Financial Capital Funds acquired through financing or generated by our business. F Intellectual Capital Intellectual abilities and intangible assets connected to our business, technical proficiency and accumulated experience. I Human Capital The combined expertise and knowledge embedded in our workforce to propel our business operations. H Social & Relationship Capital Interconnected relationships between our business and our diverse stakeholder base. SR Natural Capital The use of natural resources, such as water, fuel and materials to operate our business. N Please refer to Our Material Matters on page 60 Please refer to Sustainability Strategy on page 120. Please refer to Delivering Our Strategy and Its Progress on page 70. Please refer to Key Capitals on page 44.
RkJQdWJsaXNoZXIy NDgzMzc=