Integrated Annual Report 2021

Renewable Energy We have installed 18,720 solar photovoltaic (PV) panels on building rooftop at our shipyard operation, Marine & Heavy Engineering Business (MHB). The 8.3-MWp system spans close to 41,000 m2 (440,500 ft2) and powers eight buildings in the yard. In 2021, our usage of renewable solar energy amounting to 6,075-Mwh. Water Management Freshwater consumption by our vessels are produced onboard by each vessel’s freshwater generator, hence, depletion of freshwater resources is not considered material for our shipping operations. Energy Consumption We continue to implement our Energy Efficiency Reduction Programme for shipping and non-shipping operations. Operationally, various initiatives in support of our ISO 50001 Energy Management System were implemented for the fleet. Hull cleaning and propeller polishing are carried out based on performance monitoring and condition assessment. Additionally, we are progressively implementing advanced technologies, such as optimised newbuild designs, advanced antifouling paints and energy-saving fittings on our newbuilds. MISC Group has significantly increased its energy efficiency (EE) since strengthening on EE initiatives in 2016. This is evident by the improvements in carbon emissions intensity of our fleet between 2016 to 2020 as shown in GHG emission section. However, our energy consumption in 2021 has not seen a reduction from 2020. This result is largely due to an increase in transport work for our gas fleet, as well as an increase in the number of dynamic positioning shuttle tankers which are specialised vessels where their operations demand specialised equipment with higher fuel consumption. We manage our operational effluent discharge from our vessels through proactive action in rectifying leakages to reduce water and oil accumulating in the engine room. As for our non-shipping operation, total freshwater withdrawal increased by 4% compared with previous year. 27% reduction in plastic waste generation per vessel in 2025 compared to 2019 19% reduction in plastic waste generation per personnel onboard in 2025 compared to 2019 40% reduction in paper consumption per vessel in 2025 compared to 2019 To maintain an annual 3R rate of >95% of hazardous wastes generated To increase the annual 3R rate of non-hazardous wastes generated to 70% in 2025 from 8% in 2021 Target 2: PAPER REDUCTION Target 3: HAZARDOUS WASTE Reuse, Recycle and Recover (3R) Target 4: NON-HAZARDOUS WASTE Reuse, Recycle and Recover (3R) MISC’s Shipping Operation MISC’s Offshore Business MISC’s Shipping Operation MISC’s Shore Operation In 2021, we continued our efforts to reduce the generation of plastic wastes from our operations. Our fleet implemented programmes to reduce the use of non-essential single-use plastics, replacing them with reusable non-plastic alternatives or biodegradable options where possible, onboard our vessels. WASTE MANAGEMENT Aligned with our Promoting Circular Economy strategic priorities, we promote waste refusal, the continual use of resources and increasing renewable resource use throughout our operations and value chain. We have set Group-wide 4R (Refuse, Reduce, Reuse and Recycle/Recover) targets for hazardous, non-hazardous, paper and plastic waste to be achieved in 2025 as per the table below. OPERATING SAFELY AND SUSTAINABLY BUSINESS REVIEW 60,341,818 58,771,890 58,956,125 2019 2020 2021 740,542 2019 2020 2021 635,686 658,153 MISC Group Total Freshwater Withdrawal (m3) MISC Group Energy Consumption (GJ) MISC Fleet Operational Effluent Discharge Per Vessel Per Month (m3) 18 16 20* 11 10 8 42 40 38 PETROLEUM PRODUCT GAS MISC Fleet Garbage Generation Per Vessel (m3) MISC Fleet Plastic Waste Generation Per Vessel (m3) 2019 2020 2021 2019 2020 2021 In 2021, our total garbage generation per vessel had increased by 9% compared to 2020. Plastic waste generation per vessel had also slightly increased by 1% from 2020. We continue to implement various key initiatives onboard of the vessels such as reduction of single use plastics onboard all vessels and utilisation of drinking water filteration system instead of supplying drinking bottles. In order to minimise the generation of packaging waste, we purchased consumable items in bulk where possible. *2021 data includes our owned vessels but operated by third party shipmanager 71 71* 31.6 65* 27.0 27.4* Target 1: PLASTIC WASTE REDUCTION Freshwater withdrawal (non-shipping) 2019 2019 2019 2020 2020 2020 2021 2021 2021 *2021 data includes our owned vessels but operated by third party shipmanager MISC Berhad 186 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 187