MISC Integrated Annual Report 2020

Health and Safety is one of the key deliverables of our sustainability framework and the risks associated with these are managed through strict adherence to prevailing regulatory and industry requirements. In 2020, we rolled out a group-wide MISC HSSE Non- Compliance Management Guideline for managing cases of non-compliance with MISC Safety Rules. System and procedures are in place to manage unsafe behaviour and HSSE non- compliance incidents, covering incident reporting, investigation, improvement actions and lessons learnt. To drive excellence in our HSSE culture, we embarked on various health and safety programmes through behavioural Health, Safety, Security and Environment (b-HSSE) to engender a generative HSSE culture in MISC where the key fundamentals of health and safety are fully integrated into every aspect of our business, operations and processes. Another key element in safety is the determination of causality in incidents and accidents through proper investigation procedures which identified the immediate and root causes through Causation Modeling techniques. The dominant factor in root causes for incidents continues to be issues related to risk management, inadequate hazard identification, application of risk controls and change management. In response to this, we further enhanced our Contractor Intervention Plan within the MISC Group. EMPLOYEE HSSE PARTICIPATION, CONSULTATION, AND COMMUNICATION Employees are represented on HSSE matters through the HSSE committees within the group. At the individual level, employees are also given the opportunity to participate in various ‘b-HSSE’ initiatives organised throughout the year such as the Road Safety campaign, HSSE Recognition Day, as well as through Unsafe Condition Unsafe Act (UCUA) reporting on HSSE matters. In addition to the communication of HSSE matters at the respective Council and Committee levels, disclosure of HSSE matters and performance including HSSE Alerts and Lessons Learnt are also communicated regularly throughout the Group via various channels (i.e. Workplace, MISC intranet portal, e-mail blasts). UNSAFE ACT UNSAFE CONDITION We have always placed great emphasis on proactive interventions to prevent incidents. Thus, the Unsafe Condition Unsafe Act (UCUA) reporting and analytics have been enhanced in the form of a digital UCUA application. The digital application, which is available on mobile and web platform, allows for efficient reporting and the analysis to be performed quickly even on a daily basis. In 2020, a total of 81,500 UCUA reports were received from employees and contractors, and these reports have been resolved by the relevant onsite functions. Findings from UCUA analysis are communicated through daily Toolbox Talks with the workforce and during HSSE campaigns. HSSE team investigates and implements corrective actions Employee observes unsafe acts and conditions at workplace Employee reports to HSSE team HSSE ASSURANCE IN 2020 HSSE Assurance is carried out with the objective to verify, evaluate and review the HSSE operational activities to ensure their integrity and reliability are always maintained, consistent with international regulations, HSSE controls and internal policies. Moreover, Group HSSE reviews the adequacy and effectiveness of HSSE controls, assessment on compliance with regulatory requirements and HSSE procedures. In 2020, a total of 21 HSEMS Assurance assignments were completed comprising of a subsidiary company, seven floating assets and 13 contractors. Due to the pendemic, five out of the 21 assignments were carried out remotely or off-site. The Remote HSEMS Assurance is a new norm that the Internal HSSE team established to ensure continual HSEMS Assurance is in place throughout the year. Unfortunately, the HSEMS Assurance on shipyards could not be carried out during this period due to the COVID-19 pandemic which resulted in extended travel restrictions throughout the year, thereby making site visits not feasible. OPERATING SAFELY AND SUSTAINABLY HSEMS Assurance Conducted for 2020 A total of 14 HSEMS Assurance were conducted in 2020 as depicted in the table below: Description of Assurance Programme 2020 Initiatives HSEMS Assurance on subsidiaries’ contractors - initiative towards improving HSE Performance within Subsidiaries’ HSEMS implementation on contractors 6 MHB Contractors: • 2 physical site visits prior to the enforcement of the Movement Control Order (MCO) • 4 physical site visits after the MCO was lifted when domestic travel was allowed with strict adherence to the SOP 3 ALAM Contractors: • Physical site visits prior to the MCO 3 Eaglestar Contractors: • Remote assurance conducted via virtual platform 1 MMS Contractor: • Site visit after the MCO was lifted when domestic travel was allowed with strict adherence to the SOP HSEMS Tier-2 - part of MISC’s effort to verify that the Subsidiaries’ HSEMS is implemented effectively and to identify areas for improvement 1 ALAM HSEMS: • Physical site visit conducted post-MCO when domestic travel was allowed with strict adherence to the SOP ‌ STOP WORK AUTHORITY Due to the high risk working conditions of our operations, the implementation of a strong safety culture is both necessary and emphasised. The Stop Work Authority is one of the several initiatives developed to further promote the practice of safe behaviour amongst all employees including seafarers on board vessels. SAFETY TRAINING MISC Group has a comprehensive HSSE training regime for all the frontliners throughout the year. Apart from statutory requirements as per the job requirement, additional training are conducted regularly. Various trainings and events were conducted virtually during the year under review which include: • Road Safety Reflection: What More Can We Do? • HSSE Stand Down 2020 • HSSE Lesson Learnt Workshop • HSSE Non-Compliance Management Employees Briefing The virtual events received overwhelming participation from employees when compared to the physical events conducted in previous years. SAFETY PERFORMANCE In 2020 we recorded one fatality due to an unmooring accident onboard one of our petroleum vessel. One life lost is one too many. All accidents are deemed intolerable as we believe it is our collective responsibility to ensure the safety of our employees. Following the incident, we immediately conducted an investigation to identify the root causes by using causation modelling technique. As a result of the investigation, several recommendations were made, which have since been implemented such as reinforcing crew empowerment for Stop Work and intervention. In addition, enhancement was made on the line of sight for more effective work areas supervision. We also conducted Focused Lesson Learnt Workshop to gain insights that can help us ensure that incidents such as these never gets repeated. The workshop, which consists of of 31 marine subject matter experts including 13 representatives from the non-HSE fraternity and 10 leadership representatives. Key takeaways from the lessons learnt were also shared with our customers. UNSAFE CONDITION UNSAFE ACT REPORTING PROCESS PLEASE PROVIDE HIGH-RES IMAGE ///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 210 MISC Berhad / Integrated Annual Report 2020 7 211 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section