Integrated Annual Report 2021

STRATEGIC REVIEW DELIVERING OUR STRATEGY Marine & Heavy Engineering segment • Strengthening the core business by expanding our international market reach for the existing Marine and Heavy Engineering segments • Developing new business by realising opportunities in the area of renewable energy projects and increasing our capabilities to secure modular structure projects • Enhancing infrastructure and machineries to increase fabrication efficiency and marine capacity • Secured a contract from SapuraOMV Upstream (Sarawak) Inc for the provision of engineering, procurement, construction, transportation & installation and hook-up & commissioning services (EPCIC) for the SK408W Jerun Development Project • Renewed certifications to maintain high quality of services to customers » » ISO 45001 : 2018 - Occupational Health and Safety Management System » » ISO 9001: 2015 - Quality Management System » » ISO 14001: 2015 - Environmental Management System • Obtained new certifications to enhance service provision » » ISO 29001: 2020 - Quality Management System for Petroleum, Petrochemical and Natural Gas Industry » » ISO 3834-2: 2005 - Quality Requirements for Fusion Welding of Metallic Material » » EN 1090-1: 2009 + A1: 2011 - Execution of Steel Structures and Aluminium Structures » » Certified to CSA Standard W47.1: Manufacturing and welding of steel structure products for onshore and offshore facilities construction for the Canadian market • The first company in Malaysia to be certified in Division 2 of Canadian Standard Association (CSA) Standard W47.1 “Certification of Companies for Fusion Welding of Steel” by the Canadian Welding Bureau (CWB). The certification gives an added level of confidence and assurance that MHB meets the Canadian standard and is capable of the manufacturing and welding of steel structure products for onshore and offshore facilities construction for the Canadian market • Kasawari Gas Development Project was awarded the Royal Society for the Prevention of Accidents (RoSPA) Gold Award in the 2021 RoSPA Health & Safety Awards for health and safety performance during the period of 1 January 2020 to 31 December 2020 • Obtained Gold Merit Award in the MSOSH 39th OSH Awards 2021 under the Petroleum, Gas, Petrochemical & Allied Sectors category Marine & Heavy Engineering Business Review on pages 142 to 151 To care for the environment and operate responsibly Towards Decarbonisation • Transition to low carbon operations • Zero-carbon emission vessel by 2030 • Decarbonised shipping operations by 2050 • Reduced fleet average CO2e intensity by 15% compared to 2008 baseline • On-going establishment for Greenhouse Gas (GHG) Scope 3 emissions inventory • Established new GHG emissions target – 50% GHG intensity reduction by 2030 for shipping operations compared with base year 2008 • Pledged our Net-Zero GHG Emissions Commitment by 2050 • Embarked on the Task Force on Climate-Related Financial Disclosures (TCFD) journey • Included climate-related strategic initiatives and GHG intensity emission as part of Group Balanced Scorecard for 2022 Our Pathway Towards Decarbonisation in Sustainability Report Promoting the Circular Economy • To promote the elimination of waste and the continual use of resources • To increase the usage of renewable resources • Established MISC Group Ship Recycling Policy and 4R waste target Promoting Circular Economy in Sustainability Report Biodiversity Conservation • To conserve and rehabilitate marine biodiversity • Invested RM175,000 in Heart of the Ocean campaign for conservation of coral reefs and protection of sea turtles • Established Employee Volunteering Programme to raise awareness on marine resource management and build capacity for the local community towards promoting sustainable economic development Conserving Marine Biodiversity in Sustainability Report Environment MISC Berhad 88 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 89