We are pleased to present MISC Berhad’s (“MISC” or “the Group”) Integrated Annual Report 2023. The purpose of this report is to provide a balanced and fair assessment of how we create value for our diverse stakeholders. This report presents a factual narrative of our material matters, business strategies, risks, corporate governance as well as financial and non-financial performance. It also seeks to underscore our relentless drive towards innovation and low-carbon solutions, creating value for our shareholders and stakeholders alike. MISC BERHAD INTEGRATED ANNUAL REPORT 2023 www.miscgroup.com Overview MISC’s 2023 Integrated Reporting Suite Reporting Scope and Boundaries This Integrated Annual Report (IAR) provides disclosures on MISC Berhad, its subsidiaries, associates and joint ventures, which are referred to as MISC or the Group throughout the report. It covers the full calendar year from 1 January to 31 December 2023, unless stated otherwise. The report also includes any material events that occurred after this date up to the date of publication. The information presented relates to the Group’s business activities and operations which cover Gas Assets & Solutions, Petroleum & Product Shipping, Offshore Business, Marine & Heavy Engineering, Marine Services and Maritime Education & Training. Materiality The information presented in this IAR is based on material matters that are most important to our business and stakeholders. In determining our material matters, we took into consideration issues that impact our ability to deploy our strategies or create shared value and long-term financial and non-financial performance; the risks identified; and the interests of our key stakeholders. Demonstrating Our Integrated Thinking We provide an overview of the Group’s ability to create value by implementing corporate and sustainability strategies. We identified the linkages, impacts and synergies between our financial and non-financial capitals, material topics, stakeholder expectations, strategic objectives, risks and opportunities. Sustainability Risks and Governance In all markets where we operate, material economic, environmental, social and governance (EES&G) principles are taken into consideration when creating our strategies, policies and initiatives. We have also integrated EES&G risk management approaches into our performance modelling. Assurance The financial information in this report is based on the consolidated Audited Financial Statements for the year ended 31 December 2023, audited by Ernst & Young PLT. Fuel consumption and vessel data have undergone third-party verification by DNV, ensuring compliance with the Ship Energy Efficiency Management Plan (SEEMP) and MARPOL Convention Regulation 22A. Exclusions The information is guided by our appetite for disclosure. We have withheld information that falls within the following categories: • Information that would jeopardise our strategic and competitive advantage; • Information that we are contractually precluded from sharing; and • Information which we are unable to verify. Forward-Looking Statements This IAR incorporates forward-looking statements that represent the Group's expectations of its future value creation prospects. These forward-looking statements involve a marked degree of uncertainty, given the dynamic nature of the operating environment and the inherent uncertainties within the industry in which MISC operates. Actual outcomes may deviate from the projections outlined in the forward-looking statements. 4 5 Key Frameworks Applied IAR SR FR International <IR> Framework issued by the IFRS Foundation in 2021 √ Main Market Listing Requirements (MMLR) issued by Bursa Malaysia √ √ Companies Act 2016 (CA 2016) √ √ Malaysian Code on Corporate Governance 2021 √ √ Corporate Governance Guide (4th Edition) issued by Bursa Malaysia √ Malaysian Financial Reporting Standards (MFRS) √ √ International Financial Reporting Standards (IFRS) √ √ Bursa Malaysia Sustainability Reporting Guide √ Global Reporting Initiative (GRI) Standards √ Sustainability Accounting Standards Board (SASB) Standards √ Dow Jones Sustainability Indices (DJSI) √ Carbon Disclosure Project (CDP) √ FTSE4Good Bursa Malaysia Index √ Task Force on Climate-related Financial Disclosures (TCFD) √ AA1000 Stakeholder Engagement Standard √ United Nations Global Compact Guiding Principles √ United Nations Guiding Principles on Business and Human Rights √ Principles of Climate Governance by World Economic Forum √ United Nations Sustainable Development Goals (UNSDGs) √ Morningstar Sustainalytics ESG Risk Ratings √ MSCI ESG ratings √ For 2023, we have provided disclosures based on the following reporting frameworks: INTEGRATED ANNUAL REPORT (IAR) 2023 Offers shareholders and stakeholders a balanced and comprehensive overview of our financial and non-financial performance. It includes insights into the external environment, our business model, strategy, achievements, financial statements, material matters, corporate governance and risk management. SUSTAINABILITY REPORT (SR) 2023 Details our initiatives, outcomes and performance in key Environmental, Social and Governance (ESG) areas, enhancing transparency in our ESG efforts. This report also encompasses our Task Force on Climate-related Financial Disclosures Report. FINANCIAL REPORT (FR) 2023 Provides detailed financial disclosures, including the Directors’ Report, Audited Financial Statements and Independent Auditors’ Report, catering to shareholders, investors, analysts and other interested parties. Responsibility Statement The Board of Directors acknowledges its responsibility in ensuring the integrity of the MISC Berhad Integrated Annual Report 2023. In the Board’s opinion, this report has addressed all material issues and matters and fairly presents the Group’s performance for the year 2023. This report has been prepared in accordance with the International Integrated Reporting <IR> Framework. Approved by the Board of Directors on 26 February 2024 and signed on behalf of the Board: DATUK ABU HURAIRA ABU YAZID Chairman CAPTAIN RAJALINGAM SUBRAMANIAM President/Group Chief Executive Officer SECTION 1 ABOUT THIS REPORT
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