Integrated Annual Report 2021

STRATEGIC REVIEW DELIVERING OUR STRATEGY To promote health and safety, individual and team excellence as well as generating positive impact on communities Health and Safety • To provide a safe and healthy environment for employees, contractors and our communities • Zero fatalities in 2021 Health and Safety, Our Utmost Priority in Sustainability Report Talent Excellence • To futureproof talent and leadership agenda by accelerating talent potential • To build a performance-driven workforce in an engaging and inclusive work environment • Continued b-HSSE with the focus on mental health programmes – Mindfulness Programme, Employee Assistance Programme, along with providing virtual workout sessions and various health talks • Conducted MISC Group HSSE Culture Maturity Survey and achieved “proactive” level • Established MISC Group Diversity and Inclusion Statement • RM27.94 million invested in capacity building • Roll-out Leadership and Functional pathway programme to expedite career growth • Achieved our set target for High Performing Talent Retention (target: 95%) and Succession Planning MC positions (target: 2:1 ratio) for two consecutive years Our People, Our Strength in Sustainability Report Community Investment • To foster youth development towards becoming future leaders through education • Established MISC Group Community Investment guidelines • Sponsored 772 students with an investment of RM21.7 million for ALAM Cadet Scholarship programme in 2021 through Eaglestar Partnering with the Community in Sustainability Report To foster strong governance and business ethics culture Values, Assurance and Business Ethics • To continuously embed a culture of strong corporate governance and business ethics and conduct • To enhance cybersecurity framework and safeguard our operations • Oversight on ESG Risks and Opportunities as part of Board KPIs for 2022 • Scored full marks for Governance theme in FTSE4Good Bursa Malaysia for three consecutive years • Established Compliance Management Framework • Endorsed Compliance Management Scorecard for year 2022 • Reviewed Raid Protocol which outlines the processes in addressing enquiries from authorities • Completed Corruption Risk Assessment review • Developed and rolled out Conflict of Interest (COI) procedures and declaration • Completed the Anti-bribery Management System (ABMS) annual audit by internal team and independent third party • Renewed the ISO37001 ABMS certification for the next three years Ethics, Governance and Sustainability in Sustainability Report • Established MISC Cybersecurity Control Standards and related guidelines to strengthen cybersecurity practices throughout the Group • Developed MISC Group Grievance Mechanism Guideline • Completed Social Risk Assessment (on human rights) for two operations Strengthening Cybersecurity in Sustainability Report Responsible Supply Chain Management • To drive sustainable practices with our suppliers • Developed MISC Group ESG Supply Chain Assurance Guidelines • Completed the pilot Self-ESG Assurance Programme for critical supply chain The Bigger Picture: Embracing a Sustainable Supply Chain in Sustainability Report To create value through trusted stakeholder relationships • Collaborate with strategic partners • Promote sustainability awareness • Communicate effectively through identified platforms • Feedback sought regularly from stakeholders • Transparency through disclosures on sustainability-related frameworks • Developed MISC Group Stakeholder Engagement Guidelines and stakeholder engagement plans • Rolled out Sustainability Strategy e-learning • Engaged actively with stakeholders on MISC’s ESG performance and sustainability strategy • Successful inaugural listing on the Dow Jones Sustainability Emerging Markets Index • Became constituent of FTSE4Good Bursa Malaysia for eight consecutive years • Scored “low risk” by Sustainalytics’ ESG Risk Ratings Stakeholder Engagement Pillar in Sustainability Report Social Governance Stakeholders MISC Berhad 90 Integrated Annual Report 2021 MISC Berhad Integrated Annual Report 2021 91