Integrated Annual Report 2021

ABOUT THIS REPORT We are pleased to present MISC Berhad’s 2021 Integrated Annual Report (IAR) in which we have adopted the International Integrated Reporting <IR> Framework as developed by the International Integrated Reporting Council (IIRC). This IAR aims to provide report users with clarity on how MISC has embedded integrated thinking into our business model as we continue to create value for our business and our stakeholders. MISC’S 2021 INTEGRATED REPORT SUITE For 2021, we have refined our basis of presentation by developing the integrated report suite as follows. INTEGRATED ANNUAL REPORT (IAR) 2021 MISC’s 2021 IAR has been developed to provide our shareholders and other stakeholders with a transparent and accountable narrative of our business activities and financial and non-financial performance for the year under review. It provides an account of the external environment and outlook, our business model and strategy, our financial statements and our approach to material matters, corporate governance and risk management. Reporting Frameworks: • International <IR> Framework issued by the IIRC in 2013 • Main Market Listing Requirements of Bursa Malaysia Companies Act 2016 • Malaysian Code on Corporate Governance 2021 • Corporate Governance Guide (3rd edition) issued by Bursa Malaysia • Malaysian Financial Reporting Standards (MFRS) • International Financial Reporting Standards (IFRS) SUSTAINABILITY REPORT (SR) 2021 In 2021, we have favoured a standalone SR in addition to our sustainability-related sections within our IAR. This SR presents details of our management and performance of material environmental, social and governance (ESG) matters. This is done as part of our continuous efforts to provide our stakeholders with better transparency of our ESG performance. This SR includes our inaugural Task Force on Climate-related Financial Disclosures (TCFD) Report. Reporting Frameworks: • Bursa Malaysia Sustainability Reporting Guide • Global Reporting Initiative (GRI) Standards (Core Option) • Sustainability Accounting Standards Board (SASB) Standards • Dow Jones Sustainability Index (DJSI) • Carbon Disclosure Project (CDP) • Transition Pathway Initiative (TPI) • Task Force on Climate-related Financial Disclosures (TCFD) • AA1000 Stakeholder Engagement Standard • United Nations Global Compact Guiding Principles • United Nations Guiding Principles on Human Rights • Principles of Climate Governance by World Economic Forum REPORTING SCOPE AND BOUNDARY This IAR provides disclosures on MISC Berhad, its subsidiaries, associates and joint ventures, which are referred to as MISC or the Group throughout the report. The IAR covers the Group’s activities and performance for the financial year ended 31 December 2021 (FY2021). It also includes any material events that occurred after this date up to the date of publication. Information presented in this IAR pertain to the Group’s business activities and operations which includes Gas Assets & Solutions, Petroleum & Product Shipping, Offshore Business, Marine & Heavy Engineering, Integrated Marine Services, Port Management & Maritime Services and Maritime Education & Training. It also covers the material business activities of our joint ventures and associates. DEMONSTRATING OUR INTEGRATED THINKING Through this IAR, we have sought to provide a contextualised account of how the Group has created value by employing our corporate and sustainability strategies. Wherever possible, this IAR presents relevant targets and performance indicators to quantify MISC’s financial and operational performance for the year under review. We recognise the strong linkages between economic and ESG matters, and the high degree of influence these have on MISC’s value creation abilities and outcomes. As such, our 2021 IAR seeks to provide: We have taken cognisance of all material matters that impact the Group’s ability to create value in the short, medium and long term. This IAR focuses on global developments, industry challenges, as well as risks and opportunities that are material to both our business and our stakeholders which could potentially impact our performance. Details of our material matters can be found in the Our Material Matters section on page 62 of this IAR and links are drawn throughout the report to demonstrate their interrelatedness and interdependencies to other factors. Throughout this IAR, we seek to demonstrate our organisation’s integrated thinking through the following means: How We Use Our Six Capitals Engaging with Internal and External Stakeholders Identifying and Referring to Our Material Matters Throughout the preparation of this IAR, the internal reporting team has conducted engagements with our internal stakeholders in order to present a holistic perspective of the Group’s activities in FY2021. Our internal stakeholders comprise each of MISC’s business units, service units and key subsidiaries. In addition, the team has incorporated the outcomes of engagements that have been conducted with our external stakeholders, including investors and analysts, throughout the year under review. Details of our stakeholder engagements can be found in the Our Stakeholders section on page 66 of this IAR. An orientation of where we are, where we aim to be and how we plan to address the expectations and challenges ahead, taking into account our past experiences An account of our value creation journey for the year under review, taking into account our strategic targets An insight into how our strategy creates sustainable value for our stakeholders We provide an account into how we interact with the external environment and utilise our six capitals to create sustainable value for our stakeholders over the short, medium and long term. This includes descriptions throughout the report of how we have allocated our resources, in line with our business and sustainability strategies. Details of our six capitals and how we have use them can be found in the How We Create Value section on page 50 of this IAR. MISC Berhad 2 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 3