MISC BERHAD 74 INTEGRATED ANNUAL REPORT 2023 75 www.miscgroup.com STRATEGIC REVIEW SECTION 6 Delivering Our Strategy and Its Focus Delivering Our Strategy and Its Focus In addition, we have embedded sustainability matters that are aligned with our Sustainability Strategy into our business strategies. The strategy focuses on the four key sustainability pillars: Financial, Environment, Social and Governance, underpinned by Stakeholder Engagement. Environment • Responsible Supply Chain Management • Governance & Business Ethics Governance • Talent Excellence • Community Investment Social • Financial Growth Plans Financial Gas Assets & Solutions Focus on selective projects, expand new gas asset classes and enhance the fleet with modern energy-efficient LNGCs • Optimise value from aging assets • Accelerate entry into clean energy business • Target investments and strategic partnerships in LNGC opportunities • Expand new asset classes Petroleum & Product Shipping Focus on strengthening the secured income stream while pursuing low-carbon business solutions through collaboration and/or partnership • Rejuvenate the fleet with dual-fuel assets • Pursue low-carbon business solutions through collaboration and partnership • Optimise asset utilisation Offshore Business Focus on project delivery and execution for MERO 3 Project while continuing to pursue opportunities in the targeted markets • Ensure successful project delivery of MERO 3 Project • Enhance operational performance via effective operational control • Pursue offshore projects in targeted market via partnerships while investing in clean energy opportunities Marine & Heavy Engineering Focus on project delivery improvement, high value marine projects, diversified business portfolio and establish footprint internationally • Enhance internal capability to be a competitive EPCIC contractor • Achieve project delivery excellence • Increase value proposition for Marine segment while pursuing opportunities in fabrication projects in the renewable segment Marine Services Focus on operational and service excellence, expand market share and diversification of revenue profile • Secure new clients through market expansion and diversification of revenue profile for sustainable long-term growth • Build Marine Services’ position in high-value and technologically advanced asset management in embracing the energy transition Maritime Education & Training Rebuild and rejuvenate the academy to achieve University College status by 2025 • Strengthen academic domain and academia to be the university of choice • Rejuvenate ALAM’s physical infrastructure and facilities Stakeholder Engagement Medium to Long-Term (MISC 2050 Vision) In parallel with our short to medium-term strategy and Sustainability Strategy, we have developed our longer range MISC 2050 strategy to future proof our business. Our long-term strategic plan addresses the threats we face in the form of a fast-changing regulatory landscape that is accelerated by the global decarbonisation agenda. At the same time, we are developing our organisational resilience and adaptability to ensure our future sustainability by identifying how MISC can remain a thriving business in a decarbonised and Net-Zero future. While LNG is a lower-emission fuel that is being used in the energy transition and will remain on our horizon in the short to medium-term, we also foresee the need to develop ZEVs to ensure a license to operate. Therefore, we are plotting our roadmap to capture opportunities arising from the Green Economy. MISC 2050 is a strategic roadmap which lays out our journey in reimagining the economic, environmental and societal role of MISC come the year 2050. More specifically, its goal is to identify and develop new opportunities that will enable us to build new businesses and asset portfolios to be added to our present mix by capitalising on the energy transition as the world evolves towards a circular economy. It is our strategic response to the risks and opportunities we have identified as various possible scenarios of the future as we seek to build the Group’s resilience in the face of unpredictable external forces leading to the middle of the century. Climate change, resource scarcity and waste generation form the key threats faced by the world. Even with diminishing land, water scarcity and rising sea levels due to climate change, the world is also clearly gearing up towards a Green Economy. The two opportunity pillars we have identified are as follows: • Renewable Energy Value Chain as the building block to manage climate change challenges with the maritime sector playing a key role • Waste-to-Value Chain as critical in tackling resource scarcity and emissions as well as repurposing maritime assets RENEWABLE ENERGY VALUE CHAIN Opportunity Area - Pillar 1 CROSS VALUE CHAIN DEPENDENCY FOR BOTH ENERGY AND RESOURCES WASTE-TO-VALUE CHAIN Opportunity Area - Pillar 2 • Common macro trends identified from imagining world scenarios in 2050 – climate change, resource scarcity and waste generation • Two opportunity pillars were identified where MISC has the “right to play” and “right to win” • Leverage on our strengths/capabilities and priorities/focus on these following areas: i) Maritime-based and asset leasing business model ii) Repurpose existing maritime assets in the industry iii) Expand our present skill sets by reskilling and retooling our people • Promoting Circular Economy • Biodiversity Conservation • Towards Decarbonisation • Assurance • Robust Culture • Collaboration • Assurance • Cybersecurity • Talent development • Youth entrepreneurship education • Health & Safety • Process safety • Employee safety, health and well-being • Engaged workforce • CSR on education • Contractor safety Short to Medium-Term • Energy efficiency • Collaboration on alternative fuel research and development • Transition to low-carbon fuel • Renewable energy mix • Marine biodiversity conservation Long-Term • Transition to decarbonised fuel • 4R – Refuse, Reduce, Reuse & Recycle • Ship recycling • Greater renewable resource utilisation
RkJQdWJsaXNoZXIy NDgzMzc=