Integrated Annual Report 2021

Almost 100% of hazardous waste generated from our non-shipping operations was recycled, reused or recovered in 2021. Our spent blasting materials generated from our yard operations were sent to a licensed cement manufacturing facility where they are recycled and used as raw material in the production of cement. Replacing copper slag with durable abrasives for certain operations allowed the reusing of materials, which reduced waste from blasting. Biodiversity Conservation We continued our two signature initiatives under the Group’s Heart of the Ocean Programme. The two initiatives are the Mersing Islands Initiative on Reef Conservation and UMT-MMS Sea Turtle Conservation Initiative which were both launched in 2020. In 2021, we introduced a Mangrove Conservation Framework and roadmap to protect and restore the mangrove ecosystem of a plot of land belonging to our Maritime Education & Training (ALAM) as part of ALAM’s land concession with the State Government of Melaka. HSSE ASSURANCE We conduct HSSE assurance to verify, evaluate and review HSSE operational activities to ensure safe operations are consistent with international regulations, HSSE controls and internal policies. The reviews allow us to assess the adequacy and effectiveness of our internal HSSE controls and procedures. Our assurance exercise not only meant for MISC Group operations but also extended to our contractors in ensuring their adherence to our HSE Policy and Objectives. In 2021, our Group HSSE team conducted 21 HSEMS Assurance exercises: two MISC Group entities and 19 contractors. Since the onset of the pandemic in 2020, all of our assurance assignments were conducted virtually through our Remote HSSE Assurance Programme. CYBERSECURITY Cybersecurity forms part of the Values, Assurance and Business Ethics strategic priorities under the MISC Sustainability Strategy 2021 – 2025. We believe it is essential to set the direction, provide a relevant security framework, build internal capabilities, pursue the information security strategy, empower the security team and raise cybersecurity awareness within MISC to improve cyber resiliency. We train and inform our workforce on potential risks and security issues in our everyday business. Both mandatory and optional training equip employees with the necessary tools to handle problems such as phishing or ransomware attempts. We monitor and modify this training if required to maximise the effectiveness of training sessions. During the year under review, we have enhanced our governance, preventive, reactive and detectives measures as well as technical “housekeeping” measures to heighten our cybersecurity requirement. OPERATING SAFELY AND SUSTAINABLY BUSINESS REVIEW 2019 2020 2021 • Almost 100% of MISC’s non-shipping hazardous waste is generated by our Marine & Heavy Engineering business. • 19% reduction in total generation of hazardous waste - lower generation of spent blasting materials due to less blasting activity. 24,908 19,401 15,805 99.9% 99.7% 99% 2019 2020 2021 Total Hazardous Waste Generation (Tonnes) Hazardous Waste 3R Rate SECURITY At MISC, we ensure the Group’s security policies, standards and guidelines are followed throughout all operations. We investigate all security incidents, fraud-related offences and other breaches accordingly as outlined in our Code of Conduct and Business Ethics. We also promote security awareness and exercise best security practices. Mitigating security risks ensures that our business operations are conducted in a safe and secure environment. We place great importance on processes to maintain the security of our workforce, premises, facilities, equipment and information from threats, dangers or risks (physical or commercial) through criminal or malicious acts, whether wilful, negligent or otherwise. Throughout 2021, we focused on raising security awareness among our employees on security related issues through various workshop across the Group. We also continued engaging with stakeholders, including local enforcement and government agencies on security matters. BUSINESS CONTINUITY PLANNING Business Continuity Management (BCM) and Business Continuity Plan (BCP) are designed to ensure that essential business functions can continue operating in the event of a major incident. BCM and BCP are aimed at minimising stakeholder disruptions and to sustain business activities. We frequently simulate and test scenarios to validate the effectiveness of recovery strategies and maintain a high level of competence as well as preparedness as identified in the BCP. Our annual Business Impact Analysis and recovery plan reviews ensure that any changes in the organisation are risk-assessed, analysed and mitigated. In 2021, eight drills, including two cybersecurity exercises were conducted throughout MISC Group of Companies. Operational resilience developed over time and well-executed recovery plans ensure that we provide uninterrupted services globally to clients and other internal and external stakeholders through split operations and staff rostering. MISC Berhad 188 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 189