MISC Integrated Annual Report 2020

// Key Messages / Highlights / Strategic Review / Sustainability / Financial Review ////// MISC Berhad / Integrated Annual Report 2020 4 66 MISC Berhad / Integrated Annual Report 2020 4 67 ////// Financial Review / Sustainability / Strategic Review / Highlights / Key Messages // Section Section OUR MATERIAL MATTERS MISC’s ability to create value over the short, medium and long term is influenced by the material factors that are most important to our business and stakeholders. In 2020, we continued to utilise the materiality assessment we had conducted the previous year. Our materiality assessment enabled us to gain a clearer understanding of the factors that most concern our stakeholders and have the potential to significantly impact our business. The identified material matters are discussed in detail throughout this Integrated Annual Report and plays a significant role in the formulation of our forward moving strategy. The following graphic presents the process we use to derive our material matters: BENCHMARKING Conduct desktop research from key industry issues, peers and leaders to identify a broad list of factors relevant to MISC Categorise the universe of factors into the six capitals: • Financial • Physical • Intellectual • Human • Social and relationship • Natural STAKEHOLDER ENGAGEMENT Engage internal and external stakeholders to better understand and prioritise factors by selecting and scoring the top five material factors • Conduct 15 interviews with Management, Board members, customers, investors and finance providers • Conduct employee focus groups from various business and service units and subsidiaries MATERIALITY VALIDATION Map MISC materiality matrix based on inputs from internal and external stakeholder engagements Validation by Management Committee on the final materiality matrix The following matrix presents the Group’s material matters: The chart below describes the importance of our material matters from internal and external stakeholders’ perspectives: Health and safety, employee engagement and natural resource use have been added as additional material matters for the Group, as these areas are of importance to our business and internal stakeholders. In particular, ensuring the health and safety of our employees and the community surrounding our operations, are our topmost priority. We strongly believe in continuous and proactive employee engagement as a means by which we can enhance the mental and emotional connection between employees and employers. This in turn encourages greater discretionary work efforts from our employees, higher productivity levels at the workplace, and a more focused talent management approach that is aligned with the business strategy. As a business that is highly committed to upholding our environmental stewardship obligations, natural resource use is key in how we maintain our environmental conservation efforts, as we continue to promote environmental awareness amongst our internal and external stakeholders. For details on how we use our materiality assessment, refer to Anchoring Sustainability @ MISC section on pages 104 to 106. Project and financial performance Values and governance Customer satisfaction Climate change Skilled workforce Diversity and inclusion Digitalisation and innovation Business knowledge and expertise Employee engagement High Priority Matters Highest Priority Matters Health and safety Natural resource use Risk management Ocean Health Highest Importance to internal stakeholders Importance to external stakeholders Lowest Highest MISC’s Materiality Matrix Internal vs External Materiality Employee engagement Internal stakeholders External stakeholders Health and safety Diversity and inclusion Business knowledge and expertise Ocean health Natural resource use Digitalisation and innovation Risk management Customer satisfaction Climate change Skilled workforce Project and financial performance Values and governance