INTEGRATED ANNUAL REPORT 2024 74 75 SECTION 6: STRATEGIC REVIEW www.miscgroup.com MISC BERHAD Delivering Our Strategy and Its Progress We have embedded sustainability elements across our business strategies. This is aligned with MISC’s Sustainability Strategy and focuses on four key pillars—Financial, Environmental, Social, and Governance, underpinned by Stakeholder Engagement. This integrated approach ensures that sustainability is a core consideration in driving long-term value, enhancing resilience, and supporting our commitment to responsible and sustainable growth. Delivering Our Strategy and Its Progress MISC 2050 VISION In parallel with our short- to medium-term strategy and Sustainability Strategy, we have developed our longer-range MISC 2050 strategy to future-proof our business. Our long-term strategic plan addresses the threats arising from a fast-changing regulatory landscape that is accelerated by the global decarbonisation agenda. At the same time, we are developing our organisational resilience and adaptability to ensure our future sustainability by identifying how MISC can remain a value-driven organisation in a decarbonised Net-Zero future. While LNG is a lower-emission fuel that is being used in the energy transition and will remain a key component in the short to medium-term, we also foresee the need to develop zero-emissions vessels to ensure a license to operate. Therefore, we are charting our roadmap to capture opportunities arising from the Green Economy. MISC 2050 is a strategic roadmap that outlines our journey in reimagining MISC’s economic, environmental and societal role come 2050. More specifically, its goal is to identify and develop new opportunities that will enable us to build new RENEWABLE ENERGY VALUE CHAIN Opportunity Area - Pillar 1 CROSS VALUE CHAIN DEPENDENCY FOR BOTH ENERGY AND RESOURCES WASTE-TO-VALUE CHAIN Opportunity Area - Pillar 2 • Common macro trends identified from imagining world scenarios in 2050: climate change, resource scarcity and waste generation • Two opportunity pillars were identified where MISC has the “right to play” and “right to win” Where We Can Turn Risks Into Opportunities Leverage our strengths/capabilities by prioritising the following areas: • Maritime-based and asset leasing business model • Repurpose existing maritime assets in the industry • Expand our present skill sets by reskilling and retooling our people businesses and asset portfolios to be added to our present mix by capitalising on the energy transition as the world evolves towards a circular economy. It is our strategic response to the risks and opportunities we have identified various possible future scenarios as we seek to build the Group’s resilience in the face of unpredictable external forces leading to 2050. Climate change, resource scarcity and waste generation form the key threats faced by the world. Even with diminishing land, water scarcity and rising sea levels due to climate change, the world is gearing up towards a Green Economy. The two opportunity pillars we identified are: • Renewable Energy Value Chain as the building block to manage climate change challenges with the maritime sector playing a key role • Waste-to-Value Chain as critical in tackling resource scarcity and emissions as well as repurposing maritime assets EMBEDDING SUSTAINABILITY IN OUR STRATEGY Stakeholder Engagement Please refer to our Sustainability Report 2024 for more information. Short to Medium Term • Energy efficiency • Collaboration on alternative fuel R&D • Transition to low-carbon fuel • Renewable energy mix Long Term • Transition to decarbonised fuel • Towards Decarbonisation • 4Rs – Refuse, Reduce, Reuse and Recycle • Ship recycling • Greater renewable resource utilisation • Promoting Circular Economy • Marine biodiversity conservation • Biodiversity Conservation Environment • Talent Excellence • Community Investment • Talent development • Youth entrepreneurship education • Engaged workforce • CSR on education • Process safety • Health and Safety • Employee safety, health and well-being • Contractor safety Social • Governance and Business Ethics • Robust Culture • Assurance • Cybersecurity • Responsible Supply Chain Management • Assurance • Collaboration Governance • Financial Governance Framework (FRA/CFP) • Financial Growth Plans Financial Gas Assets & Solutions • Progressive fleet rejuvenation strategy and an expansion into strategic growth markets • Secure new energy opportunities through strategic partnerships • Achieve operational excellence by maximising asset availability and utilisation • Enhance operational efficiency and implement abatement technologies to reduce emissions Petroleum & Products • Progressive fleet rejuvenation to capitalise on opportunities in the tanker market • Secure new energy opportunities through strategic partnerships • Optimise asset utilisation while reducing operational emissions Offshore • Drive operational excellence by ensuring asset integrity and reliable operations • Achieve project execution excellence through delivery of projects safely, on time and within budget • Provide a mixed contracting strategy encompassing lease & operate, EPC and O&M services • Develop low-emission floater technology for sustainable offshore operations Marine Services • Drive operational excellence and expand the range of maritime services and solutions • Develop future-fuel ready maritime talents • Invest in research and development (R&D) to advance new technologies and decarbonisation efforts Marine & Heavy Engineering • Drive operational excellence by delivering projects on time and within budget • Pursue strategic growth by securing high-value projects and maintaining a balanced portfolio that includes both conventional and new energy sectors • Fortify services and assets to achieve premium yard status • Implement emission reduction initiatives and responsible supply chain programmes to lower emissions intensity Maritime Education & Training • Transform ALAM to achieve University College status • Build a strong, recognisable brand and improve operational efficiency • Implement and incorporate new technologies to improve teaching and learning methodology
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