MISC BERHAD 62 INTEGRATED ANNUAL REPORT 2023 63 www.miscgroup.com STRATEGIC REVIEW SECTION 6 EXTERNAL STAKEHOLDERS Our Material Matters Sustainability is integral to MISC’s strategy and operations, as it addresses stakeholder concerns and long-term success. Periodic reassessment of material topics ensures our strategy aligns with stakeholder needs and the industry. Material Reassessment Validation Process For 2023, we reassessed and revalidated our material topics to ensure that they remain relevant to our value creation strategy. We continuously monitor the risk elements and opportunities to ensure a more holistic and robust approach of our assessment. This in turn acts as a guide in the formulation of the Group’s sustainability priorities, including our impact on society and the planet. Double Materiality Approach This was undertaken to better understand: Risk and opportunities of internal impact on enterprise value creation. External impact on the economy, environment and people. 1 Benchmarking Conducted comprehensive desktop research, utilising industry and peer benchmarking to identify relevant sustainability matters to MISC's business. 2 Stakeholder Engagement 3 Materiality Matrix Conducted a survey to gain insights on stakeholder impact on our business and operations. Their feedback and concerns were collected and analysed. Stakeholder groups include customers, financial institutions, investors/ analysts, MISC’s Board of Directors and Management team. The feedback from our stakeholder engagement survey was used to map our material matters. The materiality matrix was endorsed by our HSSE Council and the Board of Directors. We identified 15 material matters that significantly impact our business and stakeholders, a change made to keep our strategy closely aligned with stakeholder needs and environmental considerations. Materiality Analysis Health and Safety Values, Governance and Business Ethics Human Rights Financial Performance Climate Change Energy Management Sustainable Supply Chain Ocean Health Waste Management Security Talent Development and Retention Diversity and Inclusion Digitalisation Cybersecurity Community Investment INTERNAL STAKEHOLDERS Highest Materiality Medium Materiality Low Materiality In 2022, we undertook a materiality assessment and in 2023, we reviewed our material matters to ensure they remain relevant to our overall strategy. Our Material Matters The results are used in our business practices to: Create Business Value Align our sustainability strategy with business strategy Provide guidance on the disclosure topics for future reporting purposes Reinforce linkages between ESG-related risks, opportunities and corporate purpose Provide direction in establishing sustainability-related targets and commitments Prioritising What Matters Most Material Matter Description Our Approach Sustainability Strategic Priorities Health and Safety Prioritise employee safety, asset security and operational excellence through a secure work environment and meticulous maintenance. • Reinforce safety management with stringent HSE policies, fostering a Generative HSSE culture • Emphasise operational discipline and security to ensure safe work conditions for employees, contractors and assets Social Pillar: Health and Safety Values, Governance and Business Ethics Maintain high standards of corporate governance, ethical practices and integrity for sustained business resilience and long-term growth. • Strengthen governance through the establishment of several frameworks • Improve risk practices on ESG-related matters (including cybersecurity governance) and strengthen Board oversight • Encourage strict adherence to laws, policies, standards and guidelines by implementing a zero-tolerance approach to unethical practices, discriminatory actions and non-compliance Governance Pillar: Values, Assurance and Business Ethics Climate Change Transition to low-carbon economy to align with international sustainability goals and regulatory standards. • Establish strategic plans for shipping and non-shipping operations to ensure adaptability and effective response to international regulations and policy changes • Direct efforts across our operations and value chain to reduce emissions, advance decarbonisation efforts and improve low-carbon solutions Environment Pillar: Towards Decarbonisation SDGs: Key Capitals: H Human Capital Social & Relationship Capital SR Risks: Health and Safety Geopolitical Instability Asset Availability, Utilisation and Marketability P Physical Capital SDGs: Key Capitals: SR Social & Relationship Capital Risks: Increasing ClimateRelated Regulations and Requirements Governance and Integrity Geopolitical Instability Project Management Cybersecurity F Financial Capital Key Capitals: Risks: N Natural Capital P Physical Capital Increasing Climate-Related Regulations and Requirements Technology Developments Shift in Stakeholders’ Preference Towards New Energy and Low-Carbon Solutions SR Social & Relationship Capital F Financial Capital H Human Capital I Intellectual Capital SDGs:
RkJQdWJsaXNoZXIy NDgzMzc=