INTEGRATED ANNUAL REPORT 2024 60 61 SECTION 6: STRATEGIC REVIEW www.miscgroup.com MISC BERHAD Our Material Matters MATERIAL REASSESSMENT VALIDATION PROCESS By applying these criteria, we ensured that our sustainability efforts addressed critical issues while supporting our strategic goals. We identified our material sustainability matters by considering the internal impact on the business and the external impact on society and the environment, focusing on the following criteria: We addressed issues that influence our core value drivers, market competitiveness and ability to generate sustainable, long-term value for stakeholders, ensuring resilience and growth. We evaluated how our operations significantly affect economic development, environmental health and social well-being, considering the wider implications for our stakeholders and the communities where we operate. Benchmarking: We conducted in-depth research to analyse current and emerging sustainability trends, alongside peer and industry benchmarking. This allowed us to identify a focused list of sustainability matters relevant to MISC’s operations. Stakeholder Engagement: We carried out a survey to prioritise our material topics by engaging with various internal and external stakeholder groups, including: Senior Leaders throughout the MISC Group The Board of Directors Customers Financial Institutions Investors/Analysts This robust process ensured that our materiality assessment reflects stakeholder insights, aligns with industry best practices and strengthens the foundation for achieving our sustainability objectives. MATERIALITY MATRIX In 2023, we conducted an interim review of our previously identified sustainability matters, incorporating feedback from internal stakeholders. The updated materiality matrix was endorsed by the Health, Safety, Security, Environment and Sustainability (HSSES) Council and subsequently presented to the Board Sustainability & Risk Committee (BSRC) and the Board, where it was formally adopted. This review ensured our sustainability priorities remain aligned with internal insights and evolving industry standards, reaffirming our commitment to effective governance and stakeholder engagement. Our material sustainability topics are identified through a structured materiality assessment conducted at least once every three years. In 2022, MISC undertook a comprehensive assessment, engaging key stakeholders to define the most relevant sustainability priorities. This process comprised two key components: Health and Safety Values, Governance and Business Ethics Human Rights Financial Performance Climate Change Energy Management Sustainable Supply Chain Ocean Health Waste Management Security Talent Development and Retention Diversity and Inclusion Digitalisation Cybersecurity Community Investment IMPORTANCE TO STAKEHOLDERS IMPORTANCE TO MISC Highest Materiality Medium Materiality Low Materiality Our Material Matters The outcomes of our materiality assessment have been seamlessly integrated into our business practices to achieve the following: Through these efforts, MISC continues to embed sustainability at the core of its business, fostering resilience and creating value for all stakeholders. Align sustainability priorities with material matters and relevant SDGs Our initiatives are designed to address the identified material issues while supporting relevant SDGs, enabling a targeted approach to our strategic goals. Guide the setting of sustainability targets and commitments Insights from the assessment shape clear and actionable sustainability targets, driving progress and accountability across our operations. Strengthen links between ESG risks, opportunities and corporate purpose By recognising the connection between ESG factors and our purpose, we effectively navigate risks and leverage opportunities that support long-term business objectives. Inform disclosure topics in annual reporting The assessment ensures our reporting remains transparent and focused, addressing the key aspects of our sustainability performance and initiatives. Values, Governance and Business Ethics Maintain high standards of corporate governance, ethical practices and integrity for sustained business resilience and long-term growth • Strengthen governance through the establishment of several frameworks • Improve risk practices on ESG-related matters (including cybersecurity governance) and strengthen Board oversight • Encourage strict adherence to laws, policies, standards and guidelines by implementing a zero-tolerance approach to unethical practices, discriminatory actions and non-compliance Governance Pillar Governance and Business Ethics SDGs Key Capitals: Risks: F H SR Cybersecurity Risk Compliance and Regulatory Risk Project Delivery Risk Geopolitical Risk Material Matter Description Our Approach Sustainability Strategic Priorities Health and Safety Prioritise employee safety, asset security and operational excellence through a secure work environment and meticulous maintenance • Reinforce safety management with stringent HSE policies, fostering a Generative HSSE Culture • Emphasise operational discipline and security to ensure safe work conditions for employees, contractors and assets Social Pillar Health and Safety SDG Key Capitals: P F H SR Compliance and Regulatory Risk Health, Safety, Security and Environment Risk Risks: Project Delivery Risk Asset Integrity and Performance Risk Geopolitical Risk
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