MISC Integrated Annual Report 2020

Introduction / Who We Are / Key Messages / Highlights / Strategic Review //////// MISC Berhad / Integrated Annual Report 2020 38 MISC Berhad / Integrated Annual Report 2020 39 //////// Strategic Review / Highlights / Key Messages / Who We Are / Introduction 2 2 Section Section CHAIRMAN’S MESSAGE A DIVERSE AND EFFECTIVE BOARD In 2020, MISC refreshed its Board composition to welcome new members. On behalf of the Board, I wish to extend our collective gratitude to Dato’ Ab. Halim Mohyiddin who had been Chairman of the Board until 31 May 2020 for his leadership. Dato’ Ab. Halim has since been subsequently redesignated as Independent Non-Executive Director and we look forward to his continued participation on the Board. Our deepest appreciation goes to Tengku Muhammad Taufik who has stepped down as the Non-Independent Non-Executive Director of the Company during the year for his valuable contributions. We warmly welcome Datin Norazah Mohamed Razali who is also the Chairperson of the newly constituted Board Governance and Risk Committee (BGRC) and Encik Mohammad Suhaimi Mohd Yassin. We are confident that their insights and perspectives will augment the ability of the Board to provide Management with focused oversight. UPHOLDING GOOD GOVERNANCE STANDARDS MISC has consistently practiced good corporate governance, reflecting its belief that robust governance practices, processes, and culture are fundamental to inspiring investors’ confidence, ensuring long-term shareholder value and protecting stakeholders’ interests. Several enhancements were implemented during the year in line with established best practices for governance as well as stepping up on the efforts towards building and sustaining a culture of ethical compliance throughout the Group. Among them were splitting the functions of the previous Board Audit and Risk Committee (BARC) between the Board Audit Committee (BAC) and the newly established Board Governance and Risk Committee (BGRC), pursuant to the step-up practice recommended by the Malaysian Code of Corporate Governance 2017 (MCCG 2017). Sustainability is another important area of attention, and to provide more focused oversight, the Board has included sustainability as part of the BGRC’s purview. In terms of sustainability accomplishments during 2020, it is very commendable that MISC has improved its scores on FTSE4Good Index and Dow Jones Sustainability Index as compared to 2019. MISC has also sustained its efforts to reduce carbon emissions through its shipping operations, and as at the end of 2020, the actual achievements recorded have exceeded the targets set against a 2016 baseline. With the conclusion of the previous five-year Sustainability Strategy, the Board approved the 2021-2025 Sustainability Strategy, which will guide MISC’s sustainability agenda for the next five years. INTERNATIONAL ACCOLADES AND AWARDS MISC continues to garner recognition at the Alpha Southeast Asia’s Institutional Investor Corporate Awards 2020 and received three awards in the categories of ‘Most Organised Investor Relations’, ‘Most Consistent Dividend Policy’ and ‘Strongest Adherence to Corporate Governance’. The Edge Billion Ringgit Club Awards also recognised MISC as providing the ‘Highest Returns to Shareholders over three years’ in the transportation and logistics sector. These awards represent the investment community’s recognition of MISC’s commitment towards upholding high standards in investor relations practices and consistent efforts towards value creation for shareholders. In recognition of MISC’s commitment to upholding its environmental stewardship practices, the Group was honoured with the ‘Notable Achievement’ award for ‘Environmental Performance’ at the prestigious Prime Minister’s Hibiscus Awards. The Group’s focus on green shipping solutions was acknowledged when five of AET’s vessels, namely the Eagle Brasilia , Eagle Barents , Eagle Bergen , Eagle Blane and Eagle Balder , received the Green Foundation Award. Health and safety remains the utmost priority for the Group and holds value for both employees and customers. In 2020, the Maritime and Port Authority of Singapore presented AET the International Safety@Sea Award for its outstanding contribution to search and rescue efforts in 2019 when it came to the assistance of three French sailors in the Bay of Biscay. The FSO Orkid ’s high performance was recognised with the Repsol Marine Vessel Safety and Operational Excellence Award, while the Seri Amanah was given the Best Quality Ship Award 2019 by the Japan Federation of Pilots’ Associations. IN APPRECIATION Our ability to work through the challenges of a difficult year would not have been possible without the unstinting support of our entire ecosystem of stakeholders. On behalf of MISC, I thank our shareholders, customers, business partners and financiers for the unreserved trust they continue to place in us. To the authorities all over the world that we have worked with, we thank you for collaborating with the Group throughout this global crisis. On behalf of the Board, I extend our heartfelt appreciation to everyone in MISC for their unfailing commitment to keep the company moving forward. And last but by no means least, to my fellow colleagues on the Board, I am indebted to you for your valuable contributions and stellar guidance in ensuring that the Group continues to persevere and prosper through these challenging times. We may not be able to control the direction of the wind, but the best that we could do is to adjust the sails to reach our destination. As MISC steps into 2021, our corporate strategy will serve as the compass to navigate our future. At the same time, we must keep our perspectives clear on the prevailing and emerging risks we would face along the way. Bolstered by the strong relationships of trust we have built with all our stakeholders throughout the years, MISC remains committed to create value for all, as we continue moving energy towards a more sustainable future. DATUK ABU HURAIRA ABU YAZID Chairman

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