Overview

In deriving our materiality matrix, several internal and external engagement sessions were conducted for the purpose of identifying matters that were material to the organisation.

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

These 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 segments, service divisions and subsidiaries. 

Materiality Matters Identification Process

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

Materiality Matrix

Material Matters Rationale Capitals Affected Pillars Affected

Project and financial performance

The maritime and energy sector is subjected to the fluctuations of the prevailing economic conditions and market sentiments, which can affect our business. Therefore, it is key that MISC has a robust business strategy to maximise our asset utilisation, secure larger project revenues and provide a sustainable financial return for shareholders.

  • Financial
  • Physical
  • Shareholders
  • Customers

Values and governance

As MISC has a vast global outreach that operates across markets and cultures, conducting ourselves with highest standards of integrity is a key priority of MISC. With this in mind, our strategic approach is focused on the continuation of embedding good corporate governance and business ethics. Ethical conduct is embedded as a cultural component within our organisation, as we aspire to achieve excellent financial and operating results.

  •  Human
  • Governance & Business Ethics

Skilled workforce

In line with our mission of promoting individual and team excellence of our employees, one of our strategic priorities is to have in place a sustainable talent pipeline across job levels to ensure seamless leadership and talent pipeline in the organization. It is vital that our talent management programme is robust and able to equip and develop our workforce with the necessary skills and competencies to realise our business objectives.

  • Human
  • Intellectual
  •  Employees

Climate change

Climate change is a global concern that affects all aspects of life, mainly contributed by industrialisation. Organisations are increasingly expected by stakeholders to take action to reduce greenhouse gas emissions and shipping sector is no exception. International Maritime Organisation (IMO) has set IMO 2030 and 2050 targets for the shipping sector and calls for shipowners to take climate action. Considering that majority of our energy consumption is coming from combustion of fossil fuel for our vessels and electricity consumption for shore operations, MISC implemented energy reduction initiatives with targets to reduce our carbon emissions.  MISC has also signed up for the Getting to Zero Coalition, committed to developing zero-carbon emission vessels by 2030, which is closely aligned with IMO’s GHG strategy.

  •  Natural
  •  Environment

Customer Satisfaction

In view of the challenging economic and market conditions, our focus is on providing the best service and experience to all our customers through operational responsiveness and tailored solutions in order to exceed customer expectations. A high standard of customer satisfaction experience will re-affirm our status as a recognized global energy maritime solutions and service provider

  • Social
  • Relationship
  • Customers

Risk management

The emphasis to effectively reduce the impact of risks, respond to immediate risk events and recover from prolonged business disruption will ensure continuity and sustainability of key business activities as well as delivery of business objectives. MISC’s Risk policies and procedures guides the overall best practice of identifying, evaluating, managing, reporting and monitoring the ever-changing risks faced by the Group and specific measures to mitigate these risks.

  •  Financial
  • Shareholders
  • Governance & Business Ethics

Digitalisation and innovation

 Data analysis is rapidly changing the availability of information and will allow MISC to respond to changes more rapidly based on data driven decisions and increase efficiency of processes. Digitisation and innovation of digital services for our sea and shore operations will increase customer satisfaction as MISC would be able to provide integrated and innovative solutions that can serve our customers better.

  •  Intellectual
  •  Customers

Ocean health

 MISC recognises the importance to ensure clean oceans by reducing marine pollution (waste dumping and oil spillages) from sea based and land-based sources.  Through our biodiversity conservation programmes, MISC strives to create awareness on the importance to preserve marine biodiversity and the ecosystem around them to employees and communities. Minimising impact to ocean health will allow the value of resources to be maintained, thus allowing the continuous utilisation of these ecosystem services towards further value creation. In addition, MISC’s new builds are environmentally-friendly green vessels that are equipped with the Ballast Water Treatment System to avoid the spreading of non-native marine microorganism.

  • Natural
  • Environment

Diversity and inclusion

 Employee diversity is of significant importance to MISC, as we believe a diverse workforce promotes a culture that is open-minded, and encourages new ways of thinking, that is especially significant for global operations. Due to the fact that the maritime industry is known as a male dominant industry, we consciously track the number (and managerial positions) of our female employees.  In addition, we monitor our diverse nationalities and age groups of employees for both our sea and shore operations.  All our hiring policies are compliant with local and international labour regulations, where applicable and we practice a non-discriminatory hiring and promotion policy whereby all our employees are hired/ promoted based on capability and expertise. It is also our intention to provide competitive local employment opportunities wherever we operate

  • Human
  • Employees

Business knowledge and expertise

 Increased business knowledge and expertise of our employees are key to improving overall business performance and customer satisfaction. MISC acknowledges that business knowledge and expertise are influence our ability to secure long term charters for our vessels, large-scale fabrication and maintenance contracts at our shipyard and integrated maritime services contracts.  With this in mind, MISC understands the importance of enhancing our employee competency development programmes in the various business knowledge and expertise

  • Intellectual
  • HUman
  •  Customers

Health and safety

Due to the utmost importance we place on ensuring the health and safety of our employees as well as the community where we operate, MISC has decided to include health and safety to our list of material matters. The continued safety and health of our people, our assets and their cargoes remain our top priority. We believe it is necessary for a strong safety and health culture to prevail both on sea and shore

  • Human
  • Social and relationship
  •  Employees

Employee engagement

MISC believes that employee engagement is material in strengthening the mental and emotional connection employees feel towards their place of work, thus enhances productivity and talent management. A highly engaged workforce leads to value creation through better service, higher customer satisfaction, increased sales and profitability; and improved shareholder returns

  •  Human
  •  Employees

Natural resource use

Natural resource use is also deemed material to MISC due to growing concerns on environmental awareness and we are committed to play our part in conserving our environment for a sustainable future. For MISC, operating in a responsible manner means reducing our environment footprint especially on energy (mainly fuel) consumption of our shipping operations; and non-renewable electricity and freshwater consumption of our non-shipping operations

  •  Natural
  •   Environment

 

Further details on how we manage and respond to our material matters can be found on respective pillars.