MISC Integrated Annual Report 2020

Introduction / Who We Are / Key Messages / Highlights / Strategic Review //////// MISC Berhad / Integrated Annual Report 2020 10 MISC Berhad / Integrated Annual Report 2020 11 //////// Strategic Review / Highlights / Key Messages / Who We Are / Introduction This is MISC Berhad’s 2020 Integrated Annual Report, representing the fourth year of our integrated reporting journey and marks the year of our full adoption of the International Integrated Reporting <IR> Framework as developed by the International Integrated Reporting Council (IIRC). As part of our commitment towards full adoption of the <IR> Framework, we have incorporated various improvements and enhancements in the content elements and placed greater emphasis on improving clarity and conciseness. In line with the <IR> Framework and other local and international reporting guidelines and frameworks, we have incorporated the following into our 2020 Integrated Annual Report: • Enhancement of About This Report content with the inclusion of Reporting Scope and Boundary and disclosures on issues limiting availability of information • Incorporated competitive advantages of each business segment in Who We Are section • Included Statement of Value Added and Value Distributed in the Financial Review section • Explained the trade-offs made and impact on our capitals in How We Create Value section • Enhancements to Our Operating Environment section incorporating medium-term and long-term trends and growth opportunities • Refined analysis of emerging risks in Our Risks and Mitigation Strategies section • Disclosed plans to comply with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD) going forward in Strategic Review section ABOUT THIS REPORT REPORTING SCOPE AND BOUNDARY MISC Berhad, its subsidiaries, associates and joint ventures are referred to as MISC or the Group in this report. This Report pertains to the activities and performance of the Group for the financial year ended 31 December 2020 (FY2020). The Report also includes any material events that occurred after this date up to the date of publication. This Report covers information pertaining to the Group’s business activities and operations which includes LNG Asset Solutions, Petroleum & Product Shipping, Offshore Business, Marine & Heavy Engineering, Integrated Marine Services, Port Management & Maritime Services and Maritime Education & Training. It also covers material business activities of our joint ventures and associates. Through this Report, we aim to provide a comprehensive account of how the Group has created value by employing our corporate and sustainability strategies. Wherever possible, the Report presents relevant targets and performance indicators to quantify MISC’s financial and operational performance for the year under review. We recognise the strong linkages between economic, environmental, social and governance matters, and the high degree of influence these have on MISC’s value creation abilities and outcomes. As such, our Report seeks to provide: An orientation of where we are, where we aim to be and how we plan to address the expectations and challenges ahead. A record of our accomplishments in the journey towards attaining our strategic targets and sustainable value for our various stakeholders; and An insight into how our strategy creates sustainable value for our various stakeholders; MAKING USE OF THE SIX CAPITALS We continuously strive to enhance the clarity of our reporting in accordance with the <IR> Framework requirements. This includes providing greater insight into how we interact with the external environment and utilise the six capitals to create sustainable value for our stakeholders over the short, medium and long term. SIX CAPITALS OF <IR> FRAMEWORK Human Financial Physical Intellectual Natural Social & Relationship 52 nd Please scan the QR code to view our interactive report Towards presenting a holistic perspective of the Group’s activities in FY2020, the internal reporting team has conducted engagements with each of MISC’s business segments, subsidiaries and key internal departments in the preparation of this Report. It also incorporates the outcomes of engagements conducted with external stakeholders such as investors and analysts, pertaining to sustainability topics and issues, that in their professional opinion were relevant for them to make an informed decision. Annual Meeting General Wednesday 10.00 a.m. Broadcast Venue: MISC Berhad Conference Room 2 Level 17, Menara Dayabumi Jalan Sultan Hishamuddin 50050 Kuala Lumpur Malaysia 21 April 2021