MISC Integrated Annual Report 2020

KEY FOCUS AREA REFERENCE TO OTHER SECTIONS KEY ACHIEVEMENTS STRATEGIC PRIORITIES MATERIAL MATTERS UNSDG PILLAR/KEY FOCUS AREA 3: TO MAINTAIN A SUSTAINABLE GOVERNANCE AND BUSINESS ETHICS FRAMEWORK DELIVERING OUR STRATEGY Operating Responsibly on pages 228 to 237 Corporate Governance Overview Statement on pages 260 to 274 Values and governance i. To embed business ethics and ethical conduct as a cultural component within the organisation • Established and implemented MISC Compliance and Business Ethics Framework 2016-2020 • Successfully obtained ISO37001:2016 Anti Bribery Management System certification for MISC Berhad and our subsidiaries; AET and MHB • In 2019, we developed Human Rights Commitment and Modern Slavery Policy and Statement. In 2020, an update was made on our annual Modern Slavery Statement • Following our commitment on Human Rights, we have conducted Social Risk Assessment (on Human Rights) for MHB in 2019 and Eaglestar in 2020 • Developed Grievance Mechanism framework in 2020 • Successfully conducted annual CoBE training for all employees and additional Compliance e-learning for five Critical Law in 2020 • Conducted Compliance Culture Survey in 2020 and obtained Robust Culture level with ethics and integrity which have now become a part of all MISC’s business conduct and transactions • ‘See.Speak.Support’ awareness programme that was launched in 2017 is held every quarter with active employee participation. The programme was held virtually in 2020 • Achieved 5/5 rating for Governance element in FTSE4Good for two consecutive years (2019 and 2020) • In 2019, we joined Maritime Anti-Corruption Network (MACN) in line with our support against corruption in maritime ii. Work towards formal inclusion of sustainability on the Board agenda • The Board provided oversight on overall sustainability performance for 2020 and approved the 2021-2025 Sustainability Strategy • Establishment of a new Board Governance and Risk committee to provide focused oversight on Sustainability agenda People Development Business Review on pages 190 to 205 Skilled workforce Employee engagement Health and safety i. Focus on succession planning to ensure a sustainable talent pipeline is in place across the job levels in MISC • Continuation of succession planning to ensure all critical positions are filled to avoid business and operational disruptions • Established succession planning ratio for senior management (2:1) ii. To have a competent and capable workforce through a structured and holistic employee developmental process • Established Leadership and Functional Competencies which applies to all job levels • RM47.7 million invested in functional and leadership competency programmes • 8,120 participants attended 412 training programmes that were carried out in 2020 • Introduction of MISC Feedback Platform through ECHO + in September 2020 • Launched the Sustainability Awareness e-learning to create awareness on the importance of sustainability to business PILLAR/KEY FOCUS AREA 4: TO PROMOTE INDIVIDUAL AND TEAM EXCELLENCE OF OUR EMPLOYEES Board Governance and Risk Committee report on page 290 // Key Messages / Highlights / Strategic Review / Sustainability / Financial Review ////// MISC Berhad / Integrated Annual Report 2020 4 96 MISC Berhad / Integrated Annual Report 2020 4 97 ////// Financial Review / Sustainability / Strategic Review / Highlights / Key Messages // Section Section