MISC Integrated Annual Report 2020

///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 166 MISC Berhad / Integrated Annual Report 2020 7 167 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section Sustainability Pillar Initiatives and outcomes Environment 1. Green Seal ® Green Office Partnership During the year, the MHB Kuala Lumpur Office received recognition as a Green Seal Office, with another seven of our offices currently undergoing the process to obtain this certification. The Green Seal recognition was obtained after the implementation of various measures within our workplaces that strives to advance environmentally sound practices. These include purchasing and using Forest Stewardship Council (FSC) approved paper, the activation of sleep mode on computers after 30 minutes of inactivity, setting printers and copiers to the default setting of double sided printing and maintaining a total of 74 recycling bins throughout all MHB premises. 2. Energy Savings MHB’s energy savings programme aims to reduce the yard’s carbon footprint with regards to Scope 2 emission (indirect emissions) resulting from the use of electricity. As at end of 2020, Scope 2 emissions comprised 79% of MHB’s greenhouse gas (GHG) emissions. Besides installing solar rooftop solutions which are targeted to be fully functional by 2021, we also replaced conventional compact fluorescent lights (CFL) with light-emitting diodes (LED) to benefit from energy saving. We have switched a total of 5,775 units of light bulbs in the yard to LED. In order to reduce the unnecessary use of electricity, we installed 113 motion sensors in the toilets located at our offices as well as on the streetlights in the yard. 3. Waste Management Our waste management programme employs the 4R (Refuse, Reduce, Reuse and Recycle) approach to embed the recycling culture within our people. We have reduced our domestic waste through programmes such as the banning of polystyrene and encouraging our employees to bring their own reusable containers to take packed food and beverage for breakfast and lunch. In 2020, we collected 5,352.17 metric tonnes of domestic waste. We have in place a Scheduled Waste (SW) Management programme for the storage and disposal of SW in compliance with local regulations and yard procedures. In 2020, we renewed our regulatory approval to store SW of more than 20 metric tonnes and upgraded the management process at our temporary SW storage area. 4. Water Conservation Recognising that water is a limited and scarce resource, we have in place an awareness programme that focuses on water conservation. Among the measures implemented are the regulation of the minimum level of water inside the flush tank and switching from twist-type taps to push-type taps. We recorded 497,177 m 3 freshwater consumption in 2020. We fully support the Johor state government’s Johor Sustainable Development Plan 2019–2030, of which environmental sustainability and water conservation is one of its eight key thrusts. In line with this, MHB participated in the World Water Monitoring Day Celebration 2020 held by the Johor state government. MARINE & HEAVY ENGINEERING Sustainability Pillar Initiatives and outcomes Governance and Business Ethics The MHB Code of Conduct and Business Ethics (CoBE) follows the example set by PETRONAS as our guide towards conducting business ethically and sustainably. We introduced the MHB Anti-Bribery and Corruption Manual which is closely aligned with the CoBE towards enhancing our commitment in upholding a ‘Zero Tolerance Policy towards Corruption’. We implemented a number of programmes and measures in line with our commitments. We held the MMB Virtual Subcontractors and Vendors Engagement (SAVE) session to inform and educate our value chain on our stance towards anti-bribery and corruption. We implemented virtual integrity and compliance programmes throughout all our business and service units to enhance our people’s awareness and knowledge. In order to build a strong culture of governance and ethics, we enforced the Anti-Bribery Key Performance Indicator (ABKPI) in 2020. We also revised the MHB Corruption Risk Assessment (CRA) in line with our governance push. Towards ensuring compliance with privacy requirements legislated by the Personal Data Protection Act (PDPA), we conducted an awareness programme during the year for all our employees and third- party vendors and suppliers. We updated our internal and external stakeholders on our revised policy by uploading the PDPA Declaration form submission on our internal portal and through HR for our employees, and on our website and MHB’s vendor registration web page for third parties. We maintained excellent HSSE performance levels, and our efforts were lauded by the Malaysian Society of Occupational Safety and Health (MSOSH) which honoured MHB with the Occupational Safety and Health (OSH) Gold Class 1 award denoting our good OSH practices. To ensure high levels of vendor performance that can support MHB’s own customer service aspirations, we conduct regular assessments of our vendor performance. During the year, 94.9% of our vendors scored between ‘average’ to ‘good’ on the Vendor Assessment Result. In 2020, we have received a number of ISO certifications which are the ISO 3834-2: 2005 Quality Requirements for Fusion Welding of Metallic Materials, the ISO 29001: 2020 Quality Management System for Petroleum, Petrochemical and Gas Industry and the EN 1090-1: 2009 + A1: 2011 Execution of Steel Structures and Aluminium Structures. Employees We conducted workshops and training sessions to update and discuss matters such as lessons learnt, international standards (ISO) updates, and the value of ethics and integrity. Focused capability development programmes were also conducted for our technical staff. Regular campaigns highlighting QHSE and integrity, as well as events to celebrate and appreciate MHB employees were also held virtually throughout the year. A total of 104 drills were conducted to increase our employees’ alertness and response during emergencies. These included evacuation drills, oil spill drills and firefighting drills. As well as that a series of 13 enforcements were held throughout the whole company involving QHSE matters and evaluating employees’ performance through the Performance Management System. Employee engagements were maintained through interactions between employees and MHB’s top management. These included ‘Leadership Engagement: Townhalls and Walkabouts’ to foster and encourage two-way communication. We also had periodic engagements with our employee union through activities such as HSE Management Committee meetings. Adapting to COVID-19 The shift to new norms under the COVID-19 pandemic resulted in heightened sanitisation and hygiene routines. Towards assisting and supporting our people to transition to the new SOPs, we supplied refillable bottles of hand sanitisers throughout the yard. We also disseminated 55 memos, 30 awareness posters and one ‘Living Info Pack’ to create more awareness of the virus and how to stay safe within our workplaces. A total of four COVID-19 mass preliminary screening of symptomatic assessments were held during the year as and when required by stakeholders. As at end of December 2020, a total of 7,093 people, including our employees, clients and subcontractors were screened.