MISC Integrated Annual Report 2020

6736 kg of wood 15,811 kg of carbon 165 m 3 of water 1,094 kg of waste Reducing Paper Consumption With the aim of reducing paper consumption, MISC has been progressively implementing a digital signature programme for internal documents that require approval signatures. MISC partnered with DocuSign to allow its employees to conveniently obtain and deliver digital signatures and thus reduce the need for printing. Since its introduction in October 2018, we have avoided the following: Fabric Recycling Drive A fabric recycling drive was initiated in partnership with Kloth Cares as part of the save our oceans campaign. We adopted our own fabric recycling bin which has been placed at our Headquarter Office in Dayabumi. The initiative was launched during the Group’s HSSE Recognition Day held in February 2020. Unwanted fabric that is in good and wearable condition is donated to charitable organisations or exported to developing countries as second-hand fabrics, while fabric that cannot be worn any longer is upcycled as industrial wiping cloth, garments or is used as engineered fuel for cement kilns. As part of the drive, awareness amongst the employees were also created through the circulation of posters to inform them of the pollution caused by fabric disposal at landfills and the benefits of the collection drives where the fabric will be diverted away from landfills and put into beneficial use through reuse and recycling. A total of around 400 kg of unwanted fabric was collected in 2020, equivalent to 720 kg of CO 2 avoided and 6.4 million litres of water saved. Toward A Zero-Waste Culture – 4R Programme During the year, MMS conducted a Household Electronic Waste (e-Waste) Campaign in Conjunction with National Environment Day (HASN) 2020. The campaign was a joint effort between MMS (Sungai Udang Port), Malaysian Refining Company Sdn Bhd (MRCSB) and the Regasification Terminal in Sungai Udang (RGTSU) and aims to raise awareness among the employees on the proper management of household e-waste in accordance with the Environmental Quality Act 1974. Approximately 755kg of e-waste was collected. MMS (East Coast Region) embarked on a programme to promote 4R within its operations through a month-long group competition that also involved its contractors. The programme involved the recycling of damaged lifebuoys into usable product. The contest required each group to submit and share their recycling initiative to promote the sustainability of their product. About eight broken lifebuoys were recycled into creative display signages. CHSSE and the IT Department of AET have worked with a licensed vendor on electronic waste management to establish a collection point of e-waste bins in the Singapore office. Employees are encouraged to dispose e-waste generated both from their home and the office responsibly through the use of this bin instead of disposing it in the general waste. Similarly, for the Houston and UK offices, e-waste collection points have been established and made accessible to the employees. In addition to that, our Offshore Business Unit has also embarked on the same programme to encourage their employees to collect and dispose their household e-waste responsibly. To date, a total of 16 kg of e-waste has been collected. AET In 2018, AET had begun its journey to minimise single use plastics by banning single-use plastic bottles from their offices. AET has continued with its efforts by strengthening communication to educate and improve awareness by displaying posters at strategic locations. These act as reminders to the employees on the importance of minimising single use plastics due to their impact on land, oceans and marine life. In addition, an awareness briefing on single use plastics are given to new joiners during their onboard induction. MHB The objective of MHB’s ‘Bring Your Own’ campaign is to reduce the generation of plastic waste in the yard and promote the zero-waste lifestyle amongst its employees whilst increasing their awareness and knowledge on environmental matters. Green Recycling of Offshore Assets and Vessels Disposing of assets after it reaches the end of its service life leaves a huge amount of waste, posing a potential hazard to the environment. While shipbreaking has emerged as the most common method of ship disposal, dirty shipbreaking practices have resulted in the dumping of dangerous toxic materials such as asbestos and Polychlorinated Biphenyls (PCBs) on beaches and other open spaces. As a way of responsible ship recycling, since 2018 all of MISC’s offshore floating assets which services have been terminated having reached end of their useful life were sold for recycling in accordance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships 2009 (Hong Kong Convention). In 2020, two assets i.e. FSO Cendor and FSO Angsi were sold for recycling in compliance with the Hong Kong Convention. For more details please refer to the Anchoring Sustainability @ MISC section on page 120 of this Integrated Annual Report. New Solid Waste Regulation An evaluation of compliance (EOC) assessment was conducted to assess MISC’s operations compliance to the newly enforced regulation, namely the Solid Waste and Public Cleansing Management (Scheme for Commercial, Industrial and Institutional Solid waste) Regulations 2018. The regulation was enforced in 2020 in Kuala Lumpur, Putrajaya, Johor, Melaka, Negeri Sembilan, Pahang, Kedah and Perlis. The evaluation involved the following elements: 1. Development of an evaluation of compliance register to identify applicable requirements and compliance actions required. 2. Development of a Compliance Action Plan for any non-conformity to the regulations as identified during the assessment. 3. Implementation of Compliance Action Plan. 4. A sharing session by the enforcement agency, Perbadanan Pengurusan Sisa Pepejal dan Pembersihan Awam (SW Corp), was organised for MISC employees to better understand the requirements in order to ensure full compliance with the regulation. Green Seal® Green Office Partnership Certification In 2020, we were certified as Green Seal® Green Office Partners for the following offices – MISC Berhad (KL), Eaglestar (KL), AET (KL), MHB (KL), ALAM, and MMS (KL, Sg Udang Port, Kimanis, and Miri). This brings the total of MISC Group offices with Green Seal certification to 10, in addition to four AET offices which had been certified previously. The Green Seal Green Office Partnership is an internationally recognised certification that implement standards on office sustainability, with a focus on those areas within the direct control of office managers which include waste management, educating the employees, office and pantry supplies, IT equipment management, transportation and office operations. WATER It is anticipated that water will be a critical resource in the future, especially with rising population growth and increasing levels of resource consumption due to the increasing global population. In recognition of this, at MISC, where water is used at both our shore and sea facilities, we remain cognisant of our commitment to ensure water resource efficiency. Freshwater consumption by our vessels are produced onboard each vessel’s freshwater generator, hence, the depletion of freshwater resources is not considered material for our sea operations. Nevertheless, we recognise that water usage on our vessels for domestic and the running of machineries are tied to energy use as energy consumption because a significant amount of energy is required to generate freshwater from these generators. In 2020, the volume of Operational Effluent Discharge from Engine Room reduced by an average of 7% compared to 2019, which exceeded the target of 1.5% we had set ourselves. In order to achieve the objectives, we had tightened our programme for rectification of leakages to reduce water and oil accumulation in the engine room as well as tracking and analysing the effluent to identify and rectify anomalies. Overall, we had reduced our freshwater consumption by 41% from non-shipping operations against a baseline of 2016, and a 15% reduction in freshwater consumption from vessels in 2020 against the 2016 baseline. The reduction for non-shipping was contributed through 4R (Refused, Reduced, Reuse and Recycle) campaigns in addition to installation of water saving fittings in MHB. OPERATING SAFELY AND SUSTAINABLY ///// Sustainability / Financial Review / Business Review / Leadership / Governance /// MISC Berhad / Integrated Annual Report 2020 7 222 MISC Berhad / Integrated Annual Report 2020 7 223 /// Governance / Leadership / Business Review / Financial Review / Sustainability ///// Section Section