MISC Integrated Annual Report 2020

HSSE GOVERNANCE MISC’s HSSE culture is driven by the management’s strong commitment and implemented by the various HSSE committees throughout the Group. The MISC Group HSSE Council is chaired by our President/Group CEO with members consisting of the respective VPs and MD/ CEOs of the various subsidiaries, Head of Group HSSE, Head of Group Internal Audit (GIA) and Head of Group Corporate Communications (GCC). The Council oversees all HSSE matters related to the Group and meets on a monthly basis to review HSSE performance as well as ongoing efforts to improve performance. All operating units have similar committees or fixed agenda in their senior management committees that exhibits the strong leadership commitment towards HSSE which comprises MISC representatives from both the employer (i.e. MISC) and employees. HSSE managers within the Group meet every quarter during the MISC HSSE Managers meeting where HSSE performance and pertinent HSSE matters were shared and discussed. This forum acts as another avenue for enhancing the professional knowledge of core HSSE practitioners, and enabling engagement and governance within the Group to ensure effective HSSE practice and implementation. SAFETY HEALTH, SAFETY AND ENVIRONMENT MANAGEMENT SYSTEMS (HSEMS) The HSEMS is a system pursuant to the HSE policy instituted by MISC top management. Our management system is developed in reference to PETRONAS HSE Management System and other recognised international best practices. Eaglestar, MHB and the Offshore Business segment are certified with the ISO 45001:2018 Occupational Health and Safety Management System which recognises the pursuit for HSSE excellence. As a global maritime player, MISC’s excellent HSSE performance has been a critical building block in our brand reputation to inspire customers and stakeholders’ confidence. In 2020, the Group demonstrated our organisational resilience in transitioning our HSSE policies, systems and practices to one that is more resilient and sustainable to ensure employees, operations, suppliers and customers are safe at all times. This is further strengthened by the Group’s drive towards a generative HSSE culture, in which the emphasis is on each and every employee taking ownership of their personal safety by adhering strictly to the standard operating procedures (SOPs) that had been implemented. As a result, the entire Group was able to deliver performance to the satisfaction of the Board and our efforts were recognised by the Malaysian Society for Occupational Safety and Health (MSOSH) which presented us with five awards within various segments of our business. Although operating in different business segments, MISCs operations were OPERATING SAFELY AND SUSTAINABLY HEAD OF GHSSE’S REMARKS CAPTAIN SACHITHANANTHAN ATMALINGAM Head of Group Health, Safety, Security & Environment (GHSSE) mostly designated as essential services (including transportation, energy, oil and gas, ports and terminals) and when lockdowns were announced, we continued with our operation across each of our business segments, and within all geographic regions worldwide. As a global integrated oil and gas marine related service provider, MISC gained advantage by swiftly incorporating COVID-19 mitigation measures into our pre-existing Pandemic Action and Response Plan. Our well-defined HSSE structure, compliance culture and the best practices embedded in our business operations allowed for the rapid rollout of the new SOPs. Pandemic Response Teams (PRT) were established at Group level, as well as within each of our subsidiaries. Inputs from the PETRONAS Pandemic Response Team (PPRT) augmented our own teams’ actions ensuring comprehensive and robust response to the pandemic. We shared data within the fraternity, while PETRONAS shared its analytics at the regular management meetings held. This forum has proven to be a strong management safety net, as it enabled us to collaboratively identify the best solutions for all types of issues related to the pandemic. The members of our HSSE Council, which is chaired by the President/ Group CEO, is represented by the Vice Presidents and MD/CEOs of all our business segments including heads from Group Corporate Communications (GCC), Group Internal Audit (GIA) and Group HSSE (GHSSE) along with their HSSE managers. We stepped up the pandemic review by our PRT to regular basis, to ensure we maintained continuous and comprehensive oversight on all pandemic-related impacts. We established end-to-end SOPs across all our operating segments, which adopted guidelines and recommendations by not only the Malaysian authorities, but also from all the jurisdictions that the Group operates in. The COVID-19 related SOPs, advisories and guidelines, covered all operational aspects, and each office, dock, yard, ship and floating unit had been developed taking into consideration the unique circumstances of that particular operation. We developed specific Incident Management Plans adapted from our existing incident plans, which detailed our response should a COVID-19 incident occur. As a global business, a large portion of our employees such as ship crew, workers on offshore floating units, and those at docks and shipyards, were required to continue travel arrangements to workplaces. To ensure their safety, we rolled out a comprehensive Journey Management Plan, which covered all aspects of how our employees should manage their journey from one location to another, as well as provided them the support they required. These included mental health support, to help our employees through a difficult and challenging time. Whilst COVID-19 is our current main health and safety concern, we continue to focus on the safety aspects of our operations. Despite our focus on safety, an unfortunate accident, which has deeply saddened us, was a fatality case we recorded during the year, which occurred during a vessel unmooring operations. We extend our deepest and most heartfelt condolences to the family. To mourn our employee’s loss, we had a HSSE Stand Down on 23 September 2020 throughout all our operations worldwide. A thorough investigation was conducted to identify the fatal incident’s root causes. As a result of the findings, several focused recommendations were made which have since been fully implemented. These include re-emphasising the empowerment of the crew to ‘Stop Work’ and intervene in cases where danger is imminent and improving management of ‘line-of-sight’ through more effective supervision of work areas. We also conducted Focus Lesson Learnt workshops to gain insights on other similar activity across the Group that can help us ensure that incidents such as these are never repeated. In 2020, we continued our journey in establishing a Maritime Centre of Excellence that will work with internal stakeholders, industry experts, academia and regulators, to leverage on the plural vantage points and perspectives MISC Group has to propagate and improve best practices in the areas of HSSE. In line with social distancing guidelines, our Focused Lesson Learnt workshops were held through the virtual platform. It was well received among the MISC group subject matter experts, with many breakaway discussions, information, knowledge sharing and expertise emanating from the exercise and this was the seed and catalyst that kick started the further refinement of the Maritime Community of Practice. We transitioned our learning and development programmes to online platforms. In addition, Work From Home (WFH) arrangements also utilised digital and mobile technologies to enable new ways of working. As we accelerated group-wide digitalisation, cybersecurity risks naturally heightened during the year. However, we were able to ensure a robust cybersecurity infrastructure due to enhancements conducted in line with our risk management approach of sustainably managing cybersecurity risks as low as reasonably practicable (ALARP). A significant milestone in May 2020 was bringing on board a new Chief Information Security Officer (CISO), and Information Security Manager to oversee this function group-wide. As a matter of priority, the CISO, working with ICT team, has incorporated an enhanced Five-Year Cybersecurity Strategy, which will be rolled out from 2021 onwards. By using the National Institute of Standards and Technology (NIST) Cybersecurity Framework, we have further improved our cybersecurity posture across the areas of ‘identify, protect, detect, respond and recover’. This includes introducing several enhancements such as Multi Factor Authentication (MFA) and our password protocols, as well as limiting access to external storage devices. There were regular phishing email drills conducted throughout the year as way of educating the employees about one of the most vulnerable gateway for potential cyberattacks. As one of the leading global shipping conglomerates, MISC has always maintained our environmental stewardship efforts to protect marine biodiversity. In 2020, we rolled out the MISC Biodiversity Conservation Flagship Programme in Mersing islands, Johor. The Programme aims at improving ocean health through supporting coral reef conservation and taking positive actions to prevent and reduce plastic litter in our oceans. The programme is a partnership between MISC and Reef Check Malaysia, a non-governmental organisation specialising in marine conservation. Under the programme, various activities to support sustainable reef management of the Mersing islands were carried out in addition to baseline assessment on waste management. Due to the pandemic, we were not able to get our employees physically involved in the programme as we had originally intended. This aspect of the programme has been put on hold, and we hope to resume it in 2021. A momentous award MISC Group received during the year was the Notable Achievement in Environmental Performance at the Malaysian Prime Minister’s Hibiscus Award. Additionally, we have been certified as Green Seal® Green Office Partners for our offices – MISC Berhad (KL), Eaglestar (KL), AET (KL), MHB (KL), ALAM, as well as MMS (KL, Sg. Udang Port, Kimanis and Miri). This brings the total number of MISC Group offices certified as Green Seal Green Office Partners to 10 offices, with four AET offices having been certified earlier. Under the programme, various improvements were implemented covering aspects of waste segregation, employees education, energy savings on IT equipment and switching to the usage of paper certified as harvested from sustainable forests. Our priority for 2021 is to embed the MISC Sustainability Strategy 2021–2025 into HSSE touch points such as cybersecurity, health and safety, decarbonisation, promoting the circular economy and biodiversity conservation. Managing the ongoing COVID-19 pandemic along with strengthening our HSSE culture remains our utmost priority in our bid to keep our employees safe. As a Group which recorded more than 45 million man-hours this year serving major international energy providers, process safety remains a critical component of our HSSE agenda. Through our concerted efforts, we are confident of retaining our excellent HSSE reputation, as a highly reliable and credible partner for gold standard customers in the maritime industry. CAPTAIN SACHITHANANTHAN ATMALINGAM Head of Group Health, Safety, Security & Environment (GHSSE) ///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 208 MISC Berhad / Integrated Annual Report 2020 7 209 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section