MISC BERHAD 122 INTEGRATED ANNUAL REPORT 2023 123 www.miscgroup.com ANCHORING SUSTAINABILITY SECTION 10 Key Progress in 2023: Sustainability Pillar Achievements Material Matter SDGs Financial • Revenue: RM14.3 billion • Operating Profit: RM2.9 billion • CFO*: RM6.5 billion • Received delivery of two LNGCs, Seri Damai and Seri Daya for SRM • Delivered two VLCC tankers powered by dual-fuel LNG engines, Eagle Vellore and Eagle Ventura to Shell. A third LNG dual-fuel VLCC was delivered in early 2024. • Unveiled the design of a future ready NBFPSO unit which uses the Mega-Module topsides and incorporated sustainable technologies into the design Environment Towards Decarbonisation • Facilitated workshops and a panel discussion among the Castor Initiative members to discuss current regulations and guidelines, challenges and detailed concepts of the ammonia storage and fuel pre-treatment systems • Achieved 24% reduction in our fleet average GHG intensity compared with 2008 • Recorded 7.10 million tonnes in total GHG emissions Promoting Circular Economy • Conducted four Ship Recycling Yard audits in Turkey • Recycled almost 100% of hazardous waste generated from shore operations Biodiversity Conservation • Surveyed 36 coral reef sites • Rehabilitated three coral sites • 77% turtle nest hatching success rate • Conserved 1,916 turtle nests since 2020 • Collected 10,011 kg of trash since 2020 Social Health and Safety • Attained a score of 4.16 in the MISC HSSE Culture Maturity Survey • Achieved 28 million man-hours without LTI for the MERO 3 Project • 102,342 UCUAs raised Talent Excellence • Achieved 81% in PETRONAS Organisational Cultural Survey • Recorded 92.6% high-performing talent retention • Invested RM33.1 million in training and development programmes for seafarers • Promoted two female officers to captains • Accepted the first two female pilots and introduced the first female OVID Inspector Community Investment • Provided cadet sponsorship for 829 students at ALAM with an investment of RM29.6 million • Awarded maritime scholarships to nine new students in collaboration with Texas A&M Foundation, MaritimeONE and Newcastle University Governance Values, Assurance and Business Ethics • 40% female Board members • Attained ISO 37001: 2016 Anti-Bribery Management System (ABMS) certification for ALAM • Trained 2,801 employees in human rights matters • Recorded zero major cybersecurity incidents and data breaches Responsible Supply Chain • Rolled out the Sustainable Procurement Statement • Completed supply chain ESG self-assessment for 55% of critical suppliers Over the past year, we have successfully accomplished and made significant contributions towards the our 11 prioritised SDGs. Prioritised SDGs Achievements and Contributions • Achieved 4.16 for the MISC HSSE culture maturity survey • Recorded 0.09 and 0.31 in Lost Time Injury Frequency (LTIF) and Total Recordable Case Frequency (TRCF), respectively • Recorded 0.15 and 0.46 for LTIF and TRCF for contractor safety performance, respectively • 1,442 employees participated in Health Passport programmes • Provided RM29.6 million in cadet sponsorship for 829 students • 136 companies, out of which 44 were critical suppliers attended annual CoBE training for third-parties • Employed 72 females across our fleet • Accepted the first two female pilots and introduced the first female OVID Inspector • Structured sustainability-linked loan with KPIs aligned with GHG and governance KPIs • Provided over 10,000 job opportunities to individuals from over 40 nationalities • Recorded zero non-compliances related to economic sanctions, data privacy and customer data privacy • As part of our transition plan to Net-Zero emissions, we initiated research on 77 technological solutions for our petroleum and gas fleet by Marine Services, where out of the 35 technologies under review, 12 are novel or new • Achieved recycling rate of 99.9% for hazardous waste and non-hazardous waste stood at 3% • 100% of wooden pallets generated by AET Offshore operations are reused or recycled • 6,672 shore employees attended training programmes • Installed SOL-X system on 72% of vessels to reduce paper consumption and increased the effectiveness of our permit-to-work tracking and disclosure • Replaced 85.6% conventional lights on MHB’s premises with LED lights • Installed 260 solar panels at MHB’s Centre of Excellence, with an estimated annual generation of 141.5 MWh of clean energy • Conducted comprehensive materiality assessment for scope 3 emissions • 90 employees participated in four separate Employee Participation Programmes (EPP) under the Heart of The Ocean Programme • Engaged with 13 island families for community host assessment • Six reef rehab structures deployed • 140 participated in the MHB River Rehabilitation Programme, collecting 2,271 waste items • Identified 229 potential bribery and corruption risks: - Developed 16 bribery and corruption risk clusters - Established 76 mitigation measures • 100% of MISC Berhad’s employees completed Annual Conflict Of Interest disclosure • Rolled out ESG Self-Assessment Framework to 55% critical suppliers • Held two sustainability sharing sessions with institutional shareholders and analysts For more information, please refer to Our Sustainability Voyages on pages 22 to 27 in MISC’s 2023 Sustainability Report For more information, please refer to MISC’s 2023 Sustainability Report Financial Performance Climate Change Energy Management Ocean Health Waste Management Health and Safety Security Talent Development and Retention Diversity and Inclusion Community Investment Values, Governance and Business Ethics Talent Development and Retention Digitalisation Cybersecurity Sustainable Supply Chain CONTRIBUTING TO THE SUSTAINABLE DEVELOPMENT GOALS (SDGS) Anchoring Sustainability Anchoring Sustainability * This refers to the adjusted CFO which excludes the payment for costs relating to turnkey activities for MERO 3 Project and the one-off FSU prepayments in 2023.
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