MISC BERHAD 64 INTEGRATED ANNUAL REPORT 2023 65 www.miscgroup.com STRATEGIC REVIEW SECTION 6 Material Matter Description Our Approach Sustainability Strategic Priorities Our Material Matters Material Matter Description Our Approach Sustainability Strategic Priorities Our Material Matters Human Rights Ensure human rights principles are upheld across our operations and value chain. • Establish and implement policies and frameworks to strengthen and promote human rights principles and practices across our operations and business • Embed human rights due diligence practices in our systems and functions across our value chain Social Pillar: Respecting Human Rights at Sea & Shore SDGs: Key Capitals: H Human Capital SR Social & Relationship Capital Risks: Governance and Integrity Project Management Diversity and Inclusion A diverse workforce promotes creativity and innovation, with fair hiring and promotion policies. • Implement policies and frameworks to cultivate an inclusive and fair workplace Social Pillar: Talent Excellence SDGs: Key Capitals: H Human Capital Risks: Talent Development and Retention SR Social & Relationship Capital Energy Management Augment energy management for effective climate change mitigation. • Continuously enhance energy efficiency design and operations for our shipping and non-shipping business to minimise environmental impact • Strengthen governance frameworks to facilitate the adoption of effective energy management practices across the business segments and value chain Environment Pillar: Towards Decarbonisation SDGs: Key Capitals: N Natural Capital P Physical Capital Risks: Increasing Climate-Related Regulations and Requirements Technology Developments Shift in Stakeholders’ Preference Towards New Energy and Low-Carbon Solutions Talent Development and Retention Build a sustainable talent pipeline with the right skills for maritime industry growth. Invest in talent management for future business needs. • Continue to foster a robust pipeline of high-performing talents through the establishment of several talent management frameworks to help nurture future-ready skills Social Pillar: Talent Excellence Risks: Talent Development and Retention SDGs: Key Capitals: H Human Capital I Intellectual Capital F Financial Capital Waste Management Responsibly manage and monitor waste from generation to disposal to minimise environmental impact. • Establish new standards and targets to improve our waste management practices and reduce waste production Environment Pillar: Promoting Circular Economy SDGs: Risks: Increasing Climate-Related Regulations and Requirements Key Capitals: N Natural Capital P Physical Capital F Financial Capital F Financial Capital I Intellectual Capital Sustainable Supply Chain Integrate ethical and environmentally-responsible practices into our value chain to mitigate our impact on the environment and society. • Promote sustainable practices across our supply chain to improve resilience • Identify collaboration/partnership opportunities on pollution prevention and decarbonisation of our operations • Promote circular economy across the value chain Governance Pillar: Responsible Supply Chain Management SDGs: Project Management Risks: Key Capitals: F Financial Capital SR Social & Relationship Capital N Natural Capital P Physical Capital Increasing Climate-Related Regulations and Requirements Governance and Integrity Shift in Stakeholders’ Preference Towards New Energy and Low-Carbon Solutions Geopolitical Instability Technology Developments Security Securing people and assets from threats and intrusions. • Reinforce security management to strengthen coordination in addressing maritime security issues Social Pillar: Health and Safety SDGs: Key Capitals: Risks: Cybersecurity Health and Safety Geopolitical Instability Asset Availability, Utilisation and Marketability H Human Capital SR Social & Relationship Capital P Physical Capital F Financial Capital Financial Performance Maintain a robust balance sheet and capital position to support future growth, enhance stability and ensure sustainable stakeholder returns. Explore clean energy segments to capitalise on the global energy transition. • Implement strategic plans and growth strategies to improve business resilience • Strengthen financial governance to align with national and international requirements to ensure relevance to the current market environment Financial Pillar: Financial Growth Plans SDGs: Key Capitals: Risks: Shift in Stakeholders’ Preference Towards New Energy and Low-Carbon Solutions Technology Developments Geopolitical Instability Project Management Asset Availability, Utilisation and Marketability P Physical Capital F Financial Capital I Intellectual Capital Ocean Health Adopt pollution prevention measures to safeguard ocean biodiversity and minimise irreversible damage. • Continue to improve our oversight and efforts in conserving ocean biodiversity Environment Pillar: Biodiversity Conservation SDGs: Key Capitals: N Natural Capital Risks: Increasing Climate-Related Regulations and Requirements Health and Safety Shift in Stakeholders’ Preference Towards New Energy and Low-Carbon Solutions F Financial Capital P Physical Capital Digitalisation Accelerate digitalisation to foster adaptability, data-driven decisions and innovative customer service across business operations. • Transform internal processes and systems organisation-wide to enhance productivity and efficiency • Continue to leverage cutting-edge and eco-efficient technologies via our newbuilds/new assets to address market competition and maintain a competitive advantage • Upskill and reskill our workforce to adapt to new technologies Financial Pillar SDGs: Technology Developments Risks: Key Capitals: I Intellectual Capital P Physical Capital Cybersecurity H Human Capital F Financial Capital Shift in Stakeholders’ Preference Towards New Energy and Low-Carbon Solutions Talent Development and Retention Community Investment Contribute financially, non-financially and through employee volunteerism to promote social equity in our communities. • Implement multi-stakeholder community initiatives and promote programmes focused on youths to cultivate interest in the maritime industry Social Pillar: Community Investment SDGs: Risks: Talent Development and Retention Key Capitals: SR Social & Relationship Capital F Financial Capital Cybersecurity Safeguard MISC’s and stakeholders’ critical data for business continuity. • Strengthen cybersecurity governance and foster a culture of compliance through training to improve capabilities and awareness, thereby reducing security risks Governance Pillar: Values, Assurance and Business Ethics SDGs: Risks: Cybersecurity Key Capitals: F Financial Capital Technology Developments H Human Capital I Intellectual Capital P Physical Capital
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