Integrated Annual Report 2021

FINANCIAL PILLAR The aim of our Financial Pillar is to achieve growth in a predictable manner, and through recurring sources of cash flow. Our five-year rolling business plan with financial growth plans guides our business units and subsidiaries in developing their business plans. The budget or financial plan primarily forecasts the future operating revenue, business costs and cash flow management. Our financial sustainability strategy refers to identifying various methods that use available resources to their best advantage while positively impacting the environment and society. Promoting the effective and responsible use of these resources will likely provide long-term benefits while returning a profit. We proactively encourage female participation in the maritime industry, to ensure the full and effective participation of women as well as their access to equal opportunities for leadership at all levels of decision making. Our talent development agenda is geared towards promoting skills throughout our workforce, including technical and vocational skills, to empower people to gain employment and decent jobs as well as encouraging entrepreneurial skills. Our various workplace policies are designed to ensure equal opportunities at the workplace, irrespective of age, gender, nationality or cultural background. Through the greater adoption of clean and environmentally sound technologies, we are designing or retrofitting our assets towards more sustainable performance that optimises the efficient use of resources. Through our policies and processes that uphold labour rights, and promote a safe and secure work environment, we are encouraging sustainable economic growth and decent work for all. We are driving towards better sustainable consumption by promoting the circular economy, through measures designed to eliminate waste and promote the use of renewable resources, as well as sustainable procurement practices. We design and operate assets that either combat or reduce the effects of climate change. We foster a strong governance and business ethics culture to fight corruption and modern slavery and promote fair practices. As a responsible maritime operator, we have in place, programmes that sustainably manage and protect marine ecosystems by strengthening their resilience and take action towards their restoration to maintain sustainable ocean health. By encouraging and participating in multi-stakeholder partnerships that mobilise and share resources on expertise and technology, we are promoting a global partnership towards a sustainable maritime industry Key Highlights in 2021 In 2021, we added six environmentally-friendly vessels in our portfolio of assets, which brings our total environmentally-friendly vessels to 20. We have focused on the installation of new technologies on our offshore assets aimed to improve energy efficiency, reduce or capture emissions. In 2021, we undertook an internal exercise to develop our long-range MISC 2050 business strategy that will future proof our business and ensure financial sustainability in the coming years. Our MISC 2050 framework lays the foundation for us to explore opportunities within the two value chain pillars of Renewable Energy and Waste-to-Value. Moving forward, our new MISC 2050 business ventures together with the growth of our existing businesses will transform into a new MISC Group business model that will provide financial sustainability for MISC in a circular and net-zero economy come 2050. 2021-2025 SUSTAINABILITY STRATEGY MISC’s Sustainability Strategy is essentially a five-year roadmap. We formulated our five-year strategic plan based on our material matters and in consultation with employees and senior management from all subsidiaries and business units through various workshops. The strategy was approved by MISC Board in 2020. The support of both our internal and external stakeholders are vital as we cruise through our future sustainability journey. Our strategy addresses 10 strategic priorities which we then grouped into five pillars namely, Financial, Environment, Social, Governance and Stakeholder Engagement. For each pillar, strategic priorities, commitments, targets and action plans were derived for each year leading up to the year 2025. UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (UNSDG) MISC has in place, focused initiatives and programmes that support the following 11 UNSDGs. ANCHORING SUSTAINABILITY @ MISC SUSTAINABILITY Details on our financial performance can be found in Financial Review section on page 106. Our strong HSSE culture is defined by a broad spectrum of programmes that promote the health and well-being of our employees, contractors and our communities. PROMOTING CIRCULAR ECONOMY TOWARDS DECARBONISATION ENVIRONMENT SOCIAL GOVERNANCE FINANCIAL STAKEHOLDER ENGAGEMENT NOITAVRESNOC YTISREVIDOIB FINANCIAL GROWTH PLANS FINANCIAL GOVERNANCE FRAMEWORK (FRA/CFP) RESPONSIBLE SUPPLY CHAIN MANAGEMENT GOVERNANCE & BUSINESS ETHICS TALENT EXCELLENCE COMMUNITY INVESTMENT HEALTH & SAFETY MISC Berhad 100 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 101

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