The identification of material issues is very much aligned with the development of the MISC Sustainability Strategy. In deriving the strategy including action plans, several steps, assessments and engagement sessions had to take place, for the purpose of discovering and identifying issues that were most material to the organisation across the six identified sustainability pillars. This is based on the understanding of gaps and issues that are most pressing to the organisation from a sustainability perspective and the understanding of best practices based on sustainability leadership.

Materiality and the process of deriving the MISC Sustainability Strategy

The process of deriving the material areas upon which the strategy was based on is as follows:Identification of Material Areas

This multi-layered and multi-stakeholder approach provided a thorough and substantial review and understanding of material aspects relevant to the Group, which ultimately formed the foundation upon which MISC’s Sustainability Strategy was developed.

The assessments and engagement sessions were carried out on the basis of inclusivity, ensuring that the MISC Group was represented as a whole. This was to safeguard the relevance of the MISC Sustainability Strategy for the Group, incorporating inputs from the various Business Units (BUs), Service Units (SUs) and Subsidiaries.

Material Issues

The material issues identified are meant to be applicable and relevant until the year 2020 (the final year of the current strategy roadmap), whereupon another materiality assessment will be conducted. The five-year strategy is essentially the process and tool in managing the identified material areas.

It was through the previously mentioned assessments that a universe of material issues was uncovered. Subsequent to the completion of these assessments, a thorough review and analysis was conducted for the purpose of identifying the themes/aspects/issues that were most common across all the assessments.

The common themes/aspects/issues identified represent the areas that are most material to the organisation, which were then categorised according to the six sustainability pillars:

Pillars Material Issues


  • Branding/reputation/perception
  • Business outlook and approach
  • Asset quality
  • Competition


  • Business outlook/approach/diversification
  • Innovation
  • Direction of MISC Group
  • Stakeholder engagement

Governance & Business Ethics

  • Transparency and disclosure
  • Bureaucracy
  • Stakeholder engagement
  • Board oversight on sustainability


  • Environmental consciousness
  • Beyond compliance
  • Corporate approach to Environment
  • Energy and emissions management
  • Material/resource efficiency


  • Employee training/development/competency
  • Employee remuneration and mobility
  • Employee benefits
  • Working relationships
  • Bureaucracy
  • Employee retention and knowledge retention
  • Employee engagement
  • Health & Safety


  • Strategic community initiatives/engagement
  • Maritime industry development/research and education


Further details on our materiality and process for deriving the MISC Sustainability Strategy, please refer to our MISC Sustainability Report 2016.

Sustainability Trends and Challenges

In addition to the identified material areas as highlighted earlier, there are also broader sustainability related trends and challenges relevant to the shipping industry that could have a direct or indirect on the industry and must be paid attention to. The following is a summary of the key highlights of trends and challenges facing the shipping industry and our position with respect to these.

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