MISC Integrated Annual Report 2020

We are continuously working to embed a culture of strong corporate governance, business ethics and conduct, throughout all the MISC Group. A significant area we plan to focus on is to enhance our cybersecurity framework and safeguard our operations as our business operations accelerate the shift towards digitalisation and automation. Within the Corporate Governance function, we will enhance our oversight of ESG risks via Enterprise Risk Management. The new BGRC which came into effect on 1 January 2021 will provide increased Board oversight on ESG risks and opportunities including cyber risk governance. We plan to step up on our Compliance and Business Ethics by progressing with our journey to embed a strong compliance culture into our business processes through awareness and assurance programmes. Towards improving cyber resiliency, we will enhance the employees’ cybersecurity capabilities and awareness across all levels, as we elevate and continuously improve our cybersecurity framework. We are cognisant of the human rights risks that exist for our business, and we are deeply committed to ensuring we regularly conduct our human rights assessment and provide for a grievance mechanism, in line with promoting fair labour practices. ANCHORING SUSTAINABILITY @ MISC Community Investment MISC’s commitments in the Community Investment strategic priority aims to foster the development of youths towards becoming future leaders through education. Demand for future workforce skills will change as businesses accelerate their digitalisation and automation journey. The workforce of the future will need to be adaptive, and innovative in the way they conduct their jobs and responsibilities. In many industries, the youths of today will end up assuming roles that have yet to exist as part of the future workforce. With this in mind, MISC’s specific focus is on developing entrepreneurship skills within the younger generation. Towards this end, our initiatives seek to establish multi-stakeholder community investment programmes aimed at upskilling entrepreneurship skills of youths. In particular, we will continue with our maritime cadet sponsorship programme at ALAM. GOVERNANCE PILLAR Under the Governance Pillar, MISC aims to reinforce a strong governance, business ethics and culture. A robust governance and ethical culture will preserve and strengthen stakeholder confidence, whilst providing the foundations for a high- performing organisation that demonstrates long-term resilience. Our two key strategic priorities within this pillar are as follows: Values, Assurance and Business Ethics Through this strategic priority, MISC aims to drive sustainable practices within our base of suppliers. We hope to take them along on our sustainability journey and encourage them to join us in our ambition towards a sustainable future. We will be driving this by implementing an ESG Supply Chain assurance programme that emphasises on sustainable sourcing, circular economy, health and safety, and business ethics compliance, including human rights. MISC will also be seeking out collaboration and partnership opportunities within our supply chain, where we will work together to capture new opportunities in the circular economy, as well as develop low-carbon products and solutions. This approach will create value not just for our customers, but also for our suppliers’ own businesses. Responsible Supply Chain Management STAKEHOLDER ENGAGEMENT PILLAR As MISC, we stand by the belief that our stakeholders are an important component of our business journey. As we continue to create shareholder value, we are cognisant to also contribute value to our other stakeholders, especially through our sustainability agenda. In line with this, we have instituted the Stakeholder Engagement Pillar as a vital part of our Sustainability Strategy. This pillar seeks to create meaningful value through trusted stakeholder relationships. Over the next five years, we plan to strengthen the collaborations we have established with our strategic partners, whilst regularly seeking feedback on our sustainability agenda. We will strengthen the relationships with our ecosystem of stakeholders, by transparently communicating and disclosing the outcomes of our sustainability agenda. COLLABORATE with strategic partners PROMOTE sustainability awareness COMMUNICATE effectively through identified platforms FEEDBACK sought regularly from stakeholders TRANSPARENCY through disclosures on sustainability- related frameworks The following form our principles of stakeholder engagement: //// Highlights / Strategic Review / Sustainability / Financial Review / Business Review ///// MISC Berhad / Integrated Annual Report 2020 5 122 MISC Berhad / Integrated Annual Report 2020 5 123 ///// Business Review / Financial Review / Sustainability / Strategic Review / Highlights //// Section Section