PILLAR/ STRATEGIC PRIORITY OUR 2022 KEY PROGRESS To achieve growth in predictable and recurring sources of cashflow To care for the environment and operate responsibly ANCHORING SUSTAINABILITY @ MISC OUR YEAR IN REVIEW - KEY PROGRESS OF OUR SUSTAINABILITY STRATEGY PILLAR/ STRATEGIC PRIORITY FINANCIAL PILLAR ENVIRONMENT PILLAR OUR 2022 KEY PROGRESS SUSTAINABLE ASSETS AND SERVICES TOWARDS DECARBONISATION To transition to a low carbon operations BIODIVERSITY CONSERVATION To conserve and rehabilitate marine biodiversity SUSTAINABILITY RISKS AND OPPORTUNITIES PROMOTING CIRCULAR ECONOMY Eliminating waste and the continual use of renewable resources • A total of 11 dual-fuel low carbon vessels (including 3 vessels in the construction phase) • AET signed MOU with PTT for the delivery of the ZEVs • MISC 2050 exploratory activities – Taskforce on CCS • MISC secured a syndicated USD527 million 11-year Sustainability Linked Loan (SLL) to finance the delivery of its six VLECs purchased in July 2020 • Developed Material Scope 3 inventory • The Castor Initiative – MOU signed with Llyod’s Register and Samsung Heavy Industries to build 2 VLCC ZEVs by 2025 and 2026 • Developed MISC Group Heart of the Ocean (HOTO) Guidelines • Launched Employee Participation Programme for reef surveys & capacity building at Mersing Island and UMT–MMS Sea Turtle Conservation Programme • Our second TCFD report includes all business units and subsidiaries • Climate-risks incorporated into Strategic Planning and Enterprise Risk Management • Internal Carbon Pricing (Shadow Price) at USD50/tonne CO2e to be used as sensitivity analysis in new investments beginning 1 Jan 2023 • Conducted Ship Recycling Yard Assurance Programme • Developed Group-wide Ship Recycling Guidelines To promote health and safety, individual and team excellence as well as positive impact on communities SOCIAL PILLAR HEALTH AND SAFETY To provide a safe and healthy environment COMMUNITY INVESTMENT To foster youth development towards becoming future leaders through education TALENT EXCELLENCE To futureproof talent and leadership agenda by accelerating talent potential in a high performing organisation • Implemented Advanced Safety Communication (ASC) • Enhanced Process Safety Management (PSM) programme • Continued with the Generative Culture - safety & loss prevention related programme • MSOSH Award Recipient 2022 for Grand, Gold Class 1 & 2 and merit awards • Contributed RM24.2 million for ALAM Cadet sponsorship • Expanded the Diversity and Inclusion Programmes • Launched Career Management to promote employee self-driven career pathing • Enhanced Leadership Pathway & Functional Curriculum to fulfil current and future development needs • FlexWork (optimise work life integration and maximise work efficiency) • FlexCareer (introducing contingent workforce) To foster strong governance and business ethics culture GOVERNANCE PILLAR VALUES, ASSURANCE AND BUSINESS ETHICS • To continuously embed a culture of strong corporate governance and business ethics and conduct within the organisation • Enhanced cybersecurity framework to safeguard our operations RESPONSIBLE SUPPLY CHAIN To drive sustainable practices with suppliers • Commenced self-assessment through Operational Legal Areas (OLA) Functional Checklists • Compliance and Ethics Survey 2022 Management Scorecard FY2022 implemented • ISO 37001:2016 Anti-Bribery Management System Recertification • Annual Review of MISC Group Bribery and Corruption Risk Assessment 2022 • Completed Human Rights Risk Assessments for Ofshore Business, ALAM and Group Security • Completed 11% ESG assessment on critical suppliers • Conducted Annual ESG engagements with critical suppliers To create value through trusted stakeholder relationships REPORTING AND DISCLOSURES To transparently promote and communicate sustainability agenda through disclosures ENGAGEMENT To collaborate with strategic partners and regularly seek feedback on sustainability agenda • MISC Group conferred Strongest Commitment to Sustainable Energy Transportation award by Alphas Southeast Asia, based on publicly available information and disclosures • MISC has been honoured the Silver Awards at The Edge ESG Awards, under the Transportation category • MISC remains as a listed constituent in the Dow Jones Sustainability Index (Emerging Market) for two consecutive years and FTSE4Good Index for 9 consecutive years • MISC Berhad has been included in the S&P Global Sustainability Yearbook 2023 as the Sustainability Yearbook Member for the first time • Completed 197 engagements with customers, investors and financial institutions on our sustainability agenda STAKEHOLDER ENGAGEMENT PILLAR Read more on our List of Strategic Community Investment in our Sustainability Report 2022. Sustainability Sustainability 93 92 MISC Berhad Integrated Annual Report 2022
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