DELIVERING OUR STRATEGY MISC is guided by our five-year rolling business plan and our Sustainability Strategy 2021 – 2025 which are the strategic tools we use to deliver value for our business and stakeholders. To create meaningful and sustainable value, we are focusing on strengthening the core by maximising cash from existing assets while accelerating our diversification into new asset classes and commercialising future options to sustainably generate cash for the Group. In implementing our strategy, we take into consideration all our business’ material sustainability considerations to ensure that we are able to deliver financial rewards to our shareholders and investors, as well as create sustainable value and positive outcomes for our customers, business partners, employees and communities. Both our five-year rolling business plan and our Sustainability Strategy 2021 – 2025 are closely aligned with our longer range MISC 2050 strategy, which has set the Group on course to become a thriving business in the net-zero future. Sustainability Pillars Key Focus Areas Strategic Priorities Key Achievements Reference to Other Sections Financial To achieve growth in a predictable manner, and through recurring sources of cash flow Gas Assets & Solutions segment • Accelerate entry into unconventional gas carriers and commercialise future options to generate cash sustainably for the Group by: - Rejuvenating portfolio - Expand new asset classes • Identifying and developing new maritime solutions and/or technologies Gas Assets & Solutions segment • Secured 10-year long-term charter contracts with SRM for two LNGCs, with an addition to another two newbuilds for SRM, to be delivered in Q1’23. • Awarded a total of 12 newbuidling LNGCs by QatarEnergy through a consortium of partners (25% JV), to be delivered in 2025. Petroleum & Product Shipping segment • Strengthening our secured income stream through rejuvenation of the fleet with low carbon fuelled crude tankers while investing in new business supporting energy transition solutions • Pursuing lowcarbon business solutions through collaboration and/or partnership Petroleum & Product Shipping segment • Took delivery of six DPSTs and two LNG dualfuel VLCCs • Eagle Valence won the Tanker of the Year Award at the Tanker Shipping & Trade (TS&T) Conference, Awards & Exhibition 2022 held in Athens, Greece and was also certified as a Green Ship as part of the MPA Green Ship Programme (GSP). • A total of 43 vessels from AET were awarded the Environmental Achievement Awards by the CSA, reflecting industry recognition of our stringent HSSE and environmental protection measures. • The CSA awarded AET the Jones F. Devlin Awards in recognition of its outstanding safety records for a combined 48 vessels. Gas Assets & Solutions Business Review on pages 108 to 111 Petroleum & Product Shipping Business Review on pages 112 to 117 Sustainability Pillars Key Focus Areas Strategic Priorities Key Achievements Reference to Other Sections Financial Offshore Business segment • Ensuring successful project delivery and execution • Persuing opportunities in targeted markets via partnership while investing in clean energy opportunities Offshore Business segment • Secured contract extensions for two assets - FPSO Bunga Kertas and FPSO Ruby 2 Marine & Heavy Engineering segment • Strengthening the core business by expanding our international market • Enhance internal capabilities to be a competitive EPCIC contractor • Increase value proposition for marine repair business while pursuing opportunities in modular and serial fabrication projects Marine & Heavy Engineering segment • Secured contracts from SSB to undertake the EPC services of the offshore platform for the Rosmari-Marjoram gas project, off the coast of Sarawak, offshore Malaysia and PCSB to undertake the Front-End Engineering Design (FEED) and the provision of EPCIC Alliance services of the offshore platform for the Kasawari CCS project, off the coast of Sarawak, offshore Malaysia • Successfully completed FEED for Kasawari CCS • MMHE entered into strategic partnerships with a maritime clean technology company, Silverstream Technologies for its air lubrication technology and with Bureau Veritas Solutions on Hull Improvements • Strengthened our Renewable Energy (RE) Offshore Wind Farms (OWF) proposition through a strategic alliance with Dyna-Mac. • The Edge Malaysia ESG Awards 2022 named MHB as the recipient of the Silver Award in the Energy category. Towards Decarbonisation • Transition to low carbon operations • Deploy zeroemissions vessel latest by 2030 • Decarbonised shipping operations by 2050 • Net-Zero GHG emissions by 2050 • Stepped up on our TCFD journey by expanding the scope to our key enablers business segments and developing MISC Climate Framework • Implemented climate-related risk integration measures into our risk management process and formalised the climate scenario analysis process as part of MISC’s annual strategic planning exercise • Set up a task force to evaluate the viability of innovative solutions in the area of CCUS • Embarked on developing our own MISC internal carbon pricing. Offshore Business Business Review on pages 118 to 123 Marine & Heavy Engineering Business Review on pages 124 to 129 Our Decarbonisation Pathway in the Sustainability Report Strategic Review Strategic Review 77 76 MISC Berhad Integrated Annual Report 2022
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