Integrated Annual Report 2021

Our LTIF and TRCF stood at 0.15 and 0.39 this year. Pandemic fatigue has been identified as the main factor that influences employees’ situational awareness at workplace. Further analysis shows that the number of incidents and major injurious incidents recorded a downtrend towards the year end with implementation of the Incident Intervention Plan and easing of COVID-19 restrictions around the world. Air Emissions We have introduced several initiatives to meet IMO 2020 Global Sulphur Cap such as changing our fuel to low sulphur fuel and LNG, retrofitted many of our vessels with scrubbers and powering newbuild vessels with lower NOx emission engines. SAFETY The continued safety for our people, vessels and cargoes, together with protection of the natural environment and communities in which we operate remain our top priority as evident by our Group-wide actions. We believe it is necessary for a strong safety culture to prevail both at sea and ashore. We strive to continually minimise health and safety risks at the workplace. To further strengthen our HSSE culture, we established HSSE Non-Compliance Management to deal with cases of non-compliance with the MISC Safety Rules that can lead to incidents. We acknowledge the need for different safety training requirements according to the job scope and operations, hence all of our operating units have a comprehensive safety training regime for their frontliners. MISC's Incident Intervention Plan addresses safety fundamentals such as ENVIRONMENT MISC has put in place dedicated plans to support our targets in pioneering shipping decarbonisation. Our future sustainability journey is centred on playing a significant role to help meet the shipping industry’s aspiration for zero-carbon emission vessels by 2030 and contributing to the larger sustainability agenda of the UNSDG, energy transition and the net-zero economy. We see the importance of accelerating climate action by fostering multi-stakeholder collaboration as the world works towards achieving net-zero and the circular economy by 2050. In view of such commitment and as a responsible member of the energy related maritime solutions and services industry, we continue our commitment to take proactive measures towards mitigating environmental impacts from our business operations. At MISC, we have identified six environment-related areas that are material to our business, namely greenhouse gas (GHG) and air emissions, energy consumption, water management, waste management and biodiversity conservation. We monitor our progress and performance on these focus areas to ensure we are in compliance and where possible exceed relevant local and international regulations and standards. Greenhouse Gas Emissions In 2021, we recorded a 15% reduction in our fleet average CO2e intensity (gas and petroleum) compared to 2008. The decrease is due to improved efficiency achieved through both operational and technical improvement initiatives as well as our focus on low carbon design of newbuild vessels. HEALTH Keeping Our Employees Safe During the Pandemic The health and safety of our employees, business partners and communities is critical. The global pandemic has had a devastating impact on the world, and it is not yet over. With that in mind, we continued to take preventive measures throughout the year to safeguard employee health and safety during the pandemic. We are mindful of the devastating effects the pandemic has had on our employees' physical and mental health. Many employees were required to work from home during the lockdown period of the pandemic. Therefore, we have continued to introduce various activities under b-HSSE programme in promoting employees physical, mental, emotional and spiritual well-being (i.e. Mindfulness Monday). We also established a helpline that provides health support for employees known as Employee Assistance Programme (EAP). This confidential helpline, operated by a third-party service provider, grants access to counsellors and health specialists. Details on how we manage our health and safety matter throughout the Group can be found in Health and Safety, Our Utmost Priority section within our Sustainability Report 2021. We are committed to phasing out Ozone Depleting Substances (ODS), under the provisions of the Montreal Protocol. Approximately 97% of the refrigerants used on our vessels are non-ozone-depleting with zero ozonedepleting potential. We continue to implement various measures to protect the ozone layer. We also recorded a 56% reduction in ODS consumption compared to 2020. 2019 2020 2021 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.45 0.40 45,580,000 0.39 0.18 0.26 0.10 0.04 0.15 FREQUENCY Lost Time Injury Frequency Total Recordable Case Frequency GROUP MISC SAFETY PERFORMANCE Total Group Greenhouse Gas (GHG) Emissions (million tonnes CO2e) 4.39 4.18 4.19 2019 2020 2021 MISC Shipping (Gas and Petroleum fleet) Carbon Intensity in Annual Efficiency Ratio (gCO2e/ton-nm) 5.71 7.65 2019 2008 2020 2021 5.96 6.48 OPERATING SAFELY AND SUSTAINABLY BUSINESS REVIEW 30,500 3,352 3,922 44,174 38,289 38,763 SOx NOx 2019 2020 2021 Almost 100% of Group’s SOx & NOx emissions are from shipping operations MISC Group Total SOx & NOx Emissions (tonnes) Improving onsite leadership visibility Emphasising on risk evaluation and effective communication Heightening intervention Stopping work in the event of unsafe behaviour and conditions Increasing employee engagement MISC Berhad 184 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 185