MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 66 www.miscgroup.com 67 www.miscgroup.com #deliveringProgress OUR MATERIAL MATTERS OUR MATERIAL MATTERS OUR CONTRIBUTIONS TO SUSTAINABLE DEVELOPMENT GOALS Our contributions to the Sustainable Development Goals (SDGs) are strategically aligned with our identified material sustainability matters. The table below provides a structured overview of how each material matter is addressed and highlights our specific contributions to the respective SDGs. MATERIAL MATTER DESCRIPTION OUR APPROACH SUSTAINABILITY STRATEGIC PRIORITIES M2 Waste Management • Waste management covers the handling of hazardous and non-hazardous waste generated from operational activities, from generation to final disposal • This material matter focuses on waste reduction at source, recycling and compliant disposal to minimise environmental impacts across MISC’s operations and businesses • Establish and monitor waste reduction and 3R targets to improve waste management practices and reduce waste generation Promoting Circular Economy Strategic Pillars: SP1 SP2 SP3 SDG: Key Capitals: Risks: R3 R7 R10 Operating Environment: E3 E4 E5 M3 Ecological Impact • Ecological impacts may arise from effluent discharge, freshwater withdrawals, the introduction of invasive species and spills • This material matter focuses on managing potential impacts on biodiversity, water quality and sensitive marine and coastal ecosystems linked to MISC’s operations and businesses • Continue improving oversight and efforts related to ocean biodiversity conservation Biodiversity Conservation SDG: Key Capitals: Risks: R3 R7 R11 Operating Environment: E3 E4 E5 E6 E7 Strategic Pillars: SP1 SP2 SP3 TARGETS • Zero major spills in 2025 • Installation of Ballast Water Treatment System on all vessels • Zero major spills in 2025 • All MISC vessels are equipped with Ballast Water Treatment Systems 2025 PROGRESS For more details on our ecological impact approach, please refer to Conserving Marine Biodiversity in our Sustainability Report 2025. TARGETS • 19% reduction in plastic waste generation in 2025 compared to 2021 and 2022 average, for Offshore operations • Maintain an annual 3R rate of above 95% of hazardous waste generated • Achieved 40% reduction in paper consumption and 27% reduction in plastic waste generation per vessel in 2025 compared to 2019 • Increase the annual 3R rate of non-hazardous waste generated to 70% in 2025 • Successfully achieved 78% reduction in plastic waste generation compared to 2021 and 2022 average for Offshore operation • Successfully maintained our annual hazardous waste 3R rate above 95% • Achieved 33% reduction in paper consumption and 15% reduction in plastic waste generation per vessel in 2025 compared to 2019 • Achieved a 10% annual 3R rate for non-hazardous waste 2025 PROGRESS For more details on our waste management approach, please refer to Promoting Circular Economy in our Sustainability Report 2025. Areas of focus Areas of interest Areas to monitor Materiality Quadrant Areas of low importance ENVIRONMENT PILLAR MATERIAL MATTER DESCRIPTION OUR APPROACH SUSTAINABILITY STRATEGIC PRIORITIES M1 Climate Change and GHG Emissions • GHG emissions from fuel combustion in engines and compressors, venting and fugitive sources such as methane leaks contribute to climate change • This material matter focuses on managing and reducing emissions and improving energy efficiency across MISC’s operations and businesses in response to climate-related physical and transition risks Note: There are 4 Climate-related Risk and Opportunities (CROs) relating to this material matter. For more information on the CROs, please refer to Sustainability-Related Financial Disclosures section in our Sustainability Report 2025. • Establish strategic plans for shipping and non-shipping operations to support effective responses to international regulations and policy changes • Direct efforts across operations and the value chain to reduce emissions, advance decarbonisation efforts and improve low-carbon solutions Towards Decarbonisation SDGs: Risks: R2 R3 R7 R11 Key Capitals: Strategic Pillars: SP1 SP2 SP3 Operating Environment: E5 E3 E6 E4 E7 For more details on our climate change and GHG emissions performance, please refer to Decarbonisation Pathway in our Sustainability Report 2025. TARGETS • 50% reduction of GHG emissions intensity (for shipping operations) by 2030 (Base year: 2008) • Net-zero GHG emissions by 2050 2025 PROGRESS • GHG emissions intensity in 2025: 4.86 gCO₂e/ton-nm, a 36% reduction from baseline
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