MISC Integrated Annual Report 2020

Material matters Why is this material? Capitals affected Ocean health Minimising our impact on ocean health will ensure that the value of marine resources are maintained. MISC recognises the importance of ensuring ocean health through implementing pollution prevention strategies in order to reduce our environmental impacts. In addition, through our biodiversity conservation programmes, MISC strives to create awareness on the importance of preserving marine biodiversity and the ecosystem around them to employees and communities. Read more on pages 224 to 225 of the Operating Safely and Sustainably section Natural Diversity and inclusion Employee diversity is of significant importance to MISC, as we believe a diverse workforce promotes a culture that is open-minded and encourages new ways of thinking that is especially significant for global operations such as ours. Due to the fact that the maritime industry is known as a male-dominated industry, we consciously promote female participation in various levels including seafaring as well as decision-making roles. We practice a non-discriminatory hiring and promotion policy whereby all our employees are hired and promoted based on their capability and expertise. It is also our intention to provide competitive local employment opportunities wherever we operate. Read more on pages 202 to 203 of the People Development section Human Business knowledge and expertise Increased business knowledge and the expertise of our employees are key to sustaining overall business performance and customer satisfaction. MISC acknowledges that business knowledge and expertise influence our ability to secure long-term charters for our vessels and floating assets, as well as contracts for various services offered by business segments within the Group. With this in mind, MISC appreciates the importance of enhancing our employee competency by conducting various development programmes related to business knowledge and expertise. Read more on pages 190 to 205 of the People Development section Intellectual and Human Natural resource use For MISC, operating in a responsible manner means reducing our environmental footprint especially on the energy (mainly fuel) consumption of our shipping operations; and non-renewable electricity and freshwater consumption of our non-shipping operations. Read more on pages 219 to 224 of the Operating Safely and Sustainably section Natural Health and safety Safety of life at sea and shore has always been at the top of our priority as there is no loss which is considered greater than the loss of human life. The continued safety and health of our employees, our assets and their cargo remain our utmost importance. We believe it is necessary for a strong safety and health culture to prevail both on sea and at shore. Read more on pages 206 to 213 of the Operating Safely and Sustainably section Human and Social and Relationship Employee engagement MISC believes that employee engagement including their involvement in our community programmes is material in strengthening the mental and emotional connection which employees feel towards their place of work, thus enhancing productivity and talent management. A highly engaged workforce leads to value creation through better service, higher customer satisfaction, increased sales and profitability, and improved shareholder returns. Read more on pages 199 to 201 of the Employee Engagement section Human DIGITALISATION AND INNOVATION In 2020, MISC invested RM202,356,664 on research and development towards enhancing our digitalisation and innovation efforts as follows: • • Safety and risk management digitisation systems aimed at protecting the safety of employees, improving productivity and ensuring compliance with maritime regulations; • • Integration of Inventory Management Systems to enable accurate inventory levels and assistance for smart procurement recommendations; and • • Data-driven ship management system aimed at harnessing shipboard machine health data to optimise operations and improve vessel reliability. ESG FINES AND PENALTIES For the year under review, MISC Group recorded zero fines and penalties related to ESG matters. HOW WE ENGAGE WITH OUR STAKEHOLDERS At MISC, we have in place a structured process when we engage with our stakeholders. We have implemented a stakeholder- inclusive approach in creating value. This means that stakeholder engagement is integrated into every step of our value creation process. For details on how we identify our stakeholders, refer to Our Stakeholders on page 68 of this Integrated Annual Report. ANCHORING SUSTAINABILITY @ MISC Collaborate with strategic partners Be Transparent on our sustainability performance disclosures Promote sustainability awareness Seek Feedback regularly Communicate effectively through identified platforms STAKEHOLDER ENGAGEMENT PRINCIPLES //// Highlights / Strategic Review / Sustainability / Financial Review / Business Review ///// MISC Berhad / Integrated Annual Report 2020 5 106 MISC Berhad / Integrated Annual Report 2020 5 107 ///// Business Review / Financial Review / Sustainability / Strategic Review / Highlights //// Section Section