MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 64 www.miscgroup.com 65 www.miscgroup.com #deliveringProgress OUR MATERIAL MATTERS OUR MATERIAL MATTERS Our sustainability agenda is shaped by the priorities of both internal and external stakeholders. Through ongoing engagement and systematic feedback, we identify the sustainability matters most relevant to our business and stakeholders. These insights inform our sustainability strategy and management approach, ensuring that initiatives remain aligned with industry practices while strengthening organisational resilience, reinforcing stakeholder trust and supporting long-term value creation. Our material sustainability matters directly influence how MISC allocates capital, manages risk and makes strategic decisions. Insights from the double materiality assessment inform enterprise planning, investment evaluation and operational priorities, ensuring that sustainability considerations are embedded within core decision-making processes rather than treated as standalone disclosures. IDENTIFYING MATERIAL TOPICS During the year under review, we conducted a double materiality assessment to refine our existing material sustainability matters and ensure that our sustainability focus areas remain aligned with evolving stakeholder expectations. In line with the double materiality assessment under the European Sustainability Reporting Standards (ESRS), the assessment considered both financial materiality and impact materiality. The level of impact on the company’s financial position. Financial Materiality The level of impact caused by the company’s operations on people and the environment. Impact Materiality Material sustainability matters are identified through the following process: 1 2 3 4 Review of Existing Material Sustainability Matters An evaluation of MISC’s existing material sustainability matters, focusing on their definitions, continued relevance, and overall importance to stakeholders. Benchmarking An analysis and benchmarking exercise conducted against relevant sustainability frameworks, reporting standards, and selected industry peers. Stakeholder Engagement Engagement with key senior management and a survey with stakeholders to assess, rank, and prioritise the identified matters from a financial materiality and impact materiality lens. Prioritisation of Material Matters Refinement and validation of material matters based on survey results, validation interviews, and management discussions. Based on the assessment, 12 material sustainability matters were identified and plotted in the materiality matrix presented below. The revised materiality matrix was endorsed by the Health, Safety, Security, Environment and Sustainability (HSSES) Council and the Board Sustainability & Risk Committee and subsequently approved by the Board of Directors for formal adoption. MISC’S DOUBLE MATERIALITY MATRIX Materiality as the Foundation of Sustainable Value The double materiality assessment provides a structured basis for aligning sustainability priorities with identified material matters and relevant SDGs. It informs target setting, clarifies the connection between ESG risks, opportunities and our corporate purpose, and shapes the focus of our annual disclosures. Through this lens, sustainability considerations are integrated into strategy, risk management and reporting, reflecting both our external impacts and the financial implications of sustainability matters on long-term resilience and value creation. The material matters underpin the development of the MISC Sustainability Strategy, which is at the heart of our business strategy, and define the themes of our sustainability pillars and guide strategic focus areas. Initiatives are aligned with these material priorities and relevant SDGs, supporting the establishment of clear sustainability-related targets and commitments. This provides a disciplined framework for execution, performance tracking and accountability across the organisation. Building Block of the MISC Sustainability Strategy 1 As part of the double materiality assessment, the material matters are also assessed through a financial materiality lens and therefore support the identification of Sustainability Risks and Opportunities (SROs) that could reasonably be expected to affect MISC’s cash flows, access to finance or cost of capital over the short, medium and long term. These SROs are integral to MISC’s sustainability and business strategies, guiding resource allocation and risk management, in turn supporting long‑term resilience and investor value. For more details on our approach to SROs, please refer to Materiality Assessment section under the Sustainability-Related Financial Disclosures in our Sustainability Report 2025. Basis of the Identification of Sustainability Risks and Opportunities 2 Results of the materiality assessment inform the sustainability disclosures we present, ensuring they remain relevant, useful and aligned with stakeholder priorities. These disclosures show how key issues shape our strategy, risk profile, performance, and outlook. By integrating materiality outcomes into our reporting processes, we provide stakeholders with a clear view of how sustainability is embedded within our governance and business model, strengthening the credibility of our reporting and reinforcing our reputation as a transparent and responsible organisation. Guiding Sustainability Disclosures in Annual Reporting 3 Financial Materiality Impact Materiality Areas to monitor Areas of focus Areas of low importance Areas of interest Health, Safety and Security Talent Management Climate Change and GHG Emissions Digitalisation Corporate Governance and Business Ethics Supply Chain Management Community Engagement and Development Cybersecurity Human Rights Ecological Impact Air Pollution Waste Management
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