MISC Integrated Annual Report 2020

ANCHORING SUSTAINABILITY @ MISC Our Stakeholders Stakeholder value proposition Material matter of concern / issues raised Our strategic response How we engage Collaborate Promote Communicate Feedback Transparency GOVERNMENT/ REGULATORY • Support the government’s agenda in promoting innovation and sustainable growth of the maritime industry • Licence to sustain operations • • Crisis management and business continuity (COVID-19) • Close engagement to brief on MISC’s pandemic response plan • Collaboration with authorities on emergency response and preparedness • • • • Development of talent and job opportunities • Collaboration on maritime academy syllabus to nurture and develop seafarers in line with the nation’s maritime aspiration • • • Provision of annual job opportunities and development of local talents • • • Corruption and bribery • Continually support the Maritime Anti-Corruption Network (MACN) to combat corruption in the maritime industry • • • SHAREHOLDERS/ INVESTORS/ FINANCIAL PROVIDERS • Better understanding of MISC’s business performance, financial position and sustainability agenda • Increase shareholder/investor confidence • Better access to debt funding for CAPEX • Project and financial performance • Exercise strong governance in project and financial management • • • Values and governance • Exercise strong corporate governance framework • Business ethics awareness and whistleblowing processes • • • • • Climate change • Signatory to Getting to Zero Coalition - Collaboration with strategic partners across the maritime ecosystem to develop commercially viable zero-carbon emission vessels by 2030 • Fleet renewal to low carbon fuelled vessels • • • Diversity and inclusion • Develop and implement diversity and inclusion programmes • • ESG risks and opportunities • Incorporate ESG risks and opportunities into business decisions • CUSTOMERS • Increase confidence in MISC’s capabilities in delivering quality and sustainable products and services • Crisis management and business continuity • Close engagements with customers to brief them on MISC’s pandemic response plan and business continuity plan to minimise operational disruption • • Values and governance • Exercise strong governance in project and financial management • Business ethics awareness and whistleblowing processes • • • • Business experience • Upskilling competencies to provide niche expertise for maritime services • • • Supply chain management • Create awareness and conduct ESG assurance within the supply chain • • Climate change • Fleet renewal to low carbon fuelled and energy efficiency designed vessels • • • Health and safety • Implementation of high health and safety standards • • EMPLOYEES • Career development and growth in a sustainable organisation • Sustainable Talent – attract and retain talent • Crisis management and business continuity (COVID-19) • Regular communications on the pandemic situation, work from home (WFH) arrangements (where possible) and mental health management programmes • • Health, safety, security and environment (HSSE) • Implementation of high health, safety and environment standards • Encouraging employees to submit Unsafe Condition and Unsafe Act (UCUA) reports • • • • • Upskilling talent • We support and encourage our employees to improve their skills and enhance their competency using our Talent Management System (TMS) • Our employees are encouraged to participate and give feedback to stimulate two-way conversations via ECHO + • • • • • Diversity and inclusion • Encourage and support employee diversity and equal opportunities through our career development and volunteering programmes • • • Business ethics and compliance • Business ethics e-learning modules to enhance the understanding of business ethics and compliance • Business ethics awareness and whistleblowing processes • • • • BUSINESS PARTNERS/ SUPPLIERS & VENDORS • Leverage on each other’s expertise and collaborate for innovative products and services • Better understanding of MISC’s expectations (including sustainability agenda) on suppliers and increased business opportunities • Project and financial performance • Exercise strong governance in project and financial management • • Crisis management and business continuity • Close engagement with business partners/suppliers and vendors to execute MISC’s pandemic response plan and minimise operational disruption • • Values and governance • Business ethics awareness and whistleblowing processes • Enhance the Know Your Counterparty (KYC) requirement for all business dealings as part of the Third-Party Compliance Due Diligence Guidelines • Provide Code of Conduct and Business Ethics (CoBE) training for third-party service providers to ensure that they are aware of MISC’s requirements and expectations • Adoption of two Competition Law Compliance Protocols to support the Competition Law Guidelines • • • • • Health, Safety and Environment (HSE) • Inculcate a stronger HSE discipline and mindset and recognise supplier/vendor with good HSE practices • • • • • Business knowledge and expertise • Upskilling competencies to provide expertise and services in niche maritime markets • • //// Highlights / Strategic Review / Sustainability / Financial Review / Business Review ///// MISC Berhad / Integrated Annual Report 2020 5 108 MISC Berhad / Integrated Annual Report 2020 5 109 ///// Business Review / Financial Review / Sustainability / Strategic Review / Highlights //// Section Section