Integrated Annual Report 2021

2021 has seen MISC continuing to drive HSSE performance by our generative HSSE culture which reinforces personal responsibility for health and safety matters within each of our employees. The continuing pandemic has further underlined the importance of an excellent HSSE culture as one of the fundamental cornerstones for business and operational continuity. During the year, we continued to roll out our Groupwide MISC HSSE Non-Compliance Management Guideline to manage risks of non-compliance with prevailing regulatory and industry requirements. Robust systems and procedures are in place to manage unsafe behaviour and HSSE noncompliance incidents, covering incident reporting and investigation, improvement actions and lessons learnt. We embarked on various behavioural Health, Safety, Security and Environment (b-HSSE) initiatives where the key fundamentals of safety and loss prevention are fully integrated into every aspect of our business, operations and processes. The long-drawn pandemic has led to pandemic fatigue within our workforce. We introduced various activities under the b-HSSE programme to support our people’s physical, mental, emotional and spiritual wellbeing. Our Employee Assistance Programme (EAP) is a confidential helpline operated by a third-party service provider that provides health support for our employees. The access that our people have had to counsellors and health specialists have been a source of support for them through these challenging times. CAPTAIN RAJA SAGER MUNIANDY Vice President, Group Health, Safety, Security & Environment VICE PRESIDENT’S REMARKS We established an incident intervention plan to address the increasing trend of incidents, by focusing on fundamentals such as Leadership visibility at sites, emphasis on risk evaluation, heightened intervention and Stop Work for unsafe behaviour and conditions, effective risk communications and increased engagements with employees. Through our Advanced Safety Communication (ASC) tool, we have enhanced our contractor HSE management by providing a systematic approach to shaping safe behaviour at the workplace. Process Safety Management (PSM) was introduced to manage all process safety cases related to MISC assets in view of the Group’s complex and hazardous operations. This has improved our process safety management and to maintain our risk at As Low As Reasonably Practicable (ALARP). Alongside that, we implemented the new Loss of Primary Containment (LOPC) and Fire Mitigation Prevention Framework as a preventive control barrier to manage process safety risk. During the year, we utilised this structured framework to assess gaps Group-wide. The Offshore Business segment has embarked on reporting its Process Safety events through Process Safety Performance Indicator (PSPI) as per American Petroleum Institute Recommended Practice 754 - Process Safety Performance Indicators for the Refining and Petrochemical Industries. Moving forward, the plan is to implement the PSPI Group-wide through a standardised reporting system. In response to climate change and energy transition demands, MISC has committed to achieving 50% reduction in GHG intensity within our fleet by 2030 compared with base year 2008, and net-zero GHG emissions by 2050. Our strategy addresses all three relevant GHGs emitted by our operations, namely carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). GHG reductions for the mid-term will focus on energy efficiency in both the design and operations of existing as well as new ships. Meanwhile, the reduction of CH4 emissions will be accelerated by prioritising advanced technologies that minimises methane slip emissions associated with LNG combustion in engines. Our longer-term pathway towards net-zero places emphasis on carbon abatement and removal strategies for all our operations before offsetting our unabated residual carbon emissions. We will maintain progress with our decarbonisation efforts, to not only address reductions of MISC’s own emissions covering Scope 1 and 2 emissions, but also our material upstream and downstream emissions from our value chain as part of Scope 3 emissions. I am happy to share that MISC’s sustainability commitments has received industry recognition at the Sustainability Business Awards (Malaysia) 2020/2021. The Group was the Winner in the three environmental categories of Waste Productivity and Materiality; Climate Change and Emissions; and Land Use and Biodiversity. Additionally, we have made further progress with our inaugural Heart of the Ocean, Mersing Islands initiative on Reef Conservation with an additional 4-year roadmap developed and currently ongoing until June 2025. The initiative, a total five-year collaboration with Reef Check Malaysia, aims to improve ocean health by supporting coral reef conservation, increasing reef resilience and reducing ocean plastic litter. In addition to continuing yearly reef surveys, monitoring and clean-ups, we conducted a study on the resilience of reefs around the Mersing Islands to identify less resilient reef sites and recommend targeted mitigation measures. We continued to conduct virtual community programmes, to raise awareness on conservation efforts and gather feedback as input for the management and planning of the island’s conservation. The continuation of the pandemic has meant that more people are working from home and in line with this, we have intensified the migration of resources on to the Cloud, along with advancing our cybersecurity protection and monitoring to protect our data. We also implemented virtual security awareness programmes to help employees understand the role they play in helping to combat security breaches. For the year ahead, we will leverage on our Five-Year HSSE Sustainability Plan to drive HSSE improvements by focusing on areas such as Contractor HSSE Management in ensuring alignment with MISC’s HSSE culture, as well as implementing Process Safety Group-wide. We believe our dedicated pursuit of HSSE excellence will continue to strengthen our HSSE performance and lead us to a generative HSSE Culture. CAPTAIN RAJA SAGER MUNIANDY Vice President, Group Health, Safety, Security & Environment OPERATING SAFELY AND SUSTAINABLY Health, safety, security and environment (HSSE) hold equal importance as other primary business objectives. We have in place a health, safety and environment management system throughout our operations covering our vessels, onshore and offshore operations to ensure compliance with relevant legislation. The Health, Safety and Environment Management Systems (HSEMS) helps to plan and mitigate the health and safety risks of employees, visitors, contractors and the environment. Apart from that, we have a b-HSSE culture programme which was launched in 2017 to engender a generative safety culture that integrates HSSE fundamentals into all aspects of the business, operation systems and processes. Employees are encouraged to participate in b-HSSE initiatives organised throughout the year. OPERATING SAFELY AND SUSTAINABLY BUSINESS REVIEW MISC Berhad 182 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 183