MISC BERHAD INTEGRATED ANNUAL REPORT 2025 08 11 09 05 12 SEC 06 STRATEGIC REVIEW 10 07 13 01 02 03 04 92 www.miscgroup.com 93 www.miscgroup.com #deliveringProgress SUSTAINABILITY AS A DECISION LENS UNDER MISC 2030 AMBITION GOVERNANCE PILLAR Growth and transition priorities under the MISC 2030 Ambition are executed within a structured control framework that integrates risk assessment, capital planning and performance monitoring. Sustainability considerations are embedded within these processes to strengthen visibility over regulatory exposure, operational disruption and transition-related obligations, enabling more informed decision-making while protecting enterprise value. Integrity and compliance systems reinforce commercial credibility across jurisdictions. Anti-bribery controls, compliance monitoring and defined assurance processes help ensure that business conduct expectations are applied consistently across operations, partners and suppliers. As digitalisation expands across fleet and corporate systems, cyber resilience frameworks safeguard operational continuity and data integrity. Governance expectations also extend across the supply chain through defined compliance and human rights standards, strengthening oversight of third-party risk and operational accountability. Together, these mechanisms ensure that strategic expansion and portfolio transformation proceed within clearly defined risk parameters, allowing the Group to pursue growth while maintaining disciplined governance oversight. Strengthening Integrity, Risk Discipline and Digital Resilience INTEGRATING SUSTAINABILITY AT THE HEART OF MISC 2030 AMBITION Sustainability is at the heart of our MISC 2030 Ambition, shaping our strategy and decision-making as the maritime industry transitions towards a lower-carbon and more responsible future. Sustainability principles are embedded across the organisation, reflected in our efforts to ensure resilient financial performance, advance the decarbonisation of our operations, strengthen workforce capability and enhance governance. By integrating sustainability into our Enterprise Strategy, we drive long-term value creation while remaining well-positioned for the future. Building on the momentum of the MISC Group Sustainability Strategy 2021–2025, the Group has progressed to a more ambitious phase of its sustainability journey. The Sustainability Strategy 2026–2030 positions sustainability as a core driver of business direction and long-term value creation. It is underpinned by three strategic pillars: Impact, Inclusion and Integrity. Impact prioritises decarbonisation and environmental stewardship; Inclusion advances human rights, workforce wellbeing and inclusive practices across the organisation and value chain; and Integrity strengthens governance, responsible supply chain management and cybersecurity. Together, these pillars reinforce organisational resilience, accountability and trust, supporting sustainable growth in alignment with MISC 2030 Ambition. Please refer to the MISC Sustainability Report for further details on the Group’s sustainability performance, initiatives and progress, including disclosures aligned with ISSB requirements. SOCIAL PILLAR Execution under the MISC 2030 Ambition depends on workforce strength and operational discipline. Safety is treated as a strategic performance measure because it shapes asset reliability, contractor management and delivery consistency, particularly as fleet renewal, technology adoption and portfolio diversification accelerate. The focus in 2025 was on reinforcing critical controls, leadership accountability and stop work expectations, with clear operational standards applied across business units. Talent planning is aligned to future portfolio needs, with structured pathways that build technical capability, leadership readiness and succession depth across shore and sea-based roles. This is organised through a three key focus area, translating future capability requirements into programmes, interventions and leadership development. These workforce practices are reinforced by the Group’s Human Rights Policy, which embeds internationally recognised labour standards, due diligence processes and grievance mechanisms across operations and value chains. Community engagement reinforces this agenda by strengthening long-term trust and widening access to education and development programmes, with selected initiatives also contributing to the talent pipeline. Together, the Social Pillar safeguards the human capacity and institutional discipline required to deliver strategic change. Protecting People, Building Capability and Sustaining Trust KEY HIGHLIGHTS KEY HIGHLIGHTS Achieved 100% pledge of commitment to the Life-Saving Rules by all employees across MISC Group and ALAM cadets. Launched Project tHR1ve, a strategic human resource (HR) transformation initiative focused on reshaping how HR delivers value to the business and its people. Launch of our Care & Comply principles to reinforce safety compliance and promote shared responsibility for workplace health and safety among employees and contractors. Maintained ISO 37001:2016 Anti-Bribery Management System certification through surveillance and internal audits conducted during the year. Recorded zero non-compliances related to bribery and corruption, anti-money laundering or insider trading, with no monetary losses from related legal proceedings. Deployed KeepUp@Sea, a comprehensive cybersecurity solution to 75 vessels across MISC Group. 60% of our suppliers were local, with a total spending of RM 2.1 billion directed toward supporting these suppliers and roll-out of ESG Self Assessments to 116 of our criticial suppliers. SUSTAINABILITY AS A DECISION LENS UNDER MISC 2030 AMBITION RM32.2 million was invested to sponsor 776 cadets at Akademi Laut Malaysia (ALAM), expanding the pipeline of skilled seafarers. RM40.7 million invested in capability building for employees.
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