MISC Annual Report 2017

MISC BERHAD | Annual Report 2017 40 SUSTAINABILITY@MISC MATERIALITY 7KH SURFHVV WRRN SODFH IRU WKH PRVW SDUW RI ZLWK WKH ƓQDO endorsement and approval achieved in December 2016. It LV UHFRJQLVHG DV WKH LQLWLDWLYH IRU WKH ƓUVW \HDU RI WKH ƓYH \HDU Sustainability Strategy roadmap, which included the planning and development of strategic initiatives for each of the six sustainability pillars. 2017 onwards are years of the formal roll- out and implementation of the various initiatives, with targets to be achieved by 2020. The process of deriving the material areas upon which the strategy was based on is as follows : MATERIALITY AND PROCESS FOR DERIVING THE MISC SUSTAINABILITY STRATEGY 7KH LGHQWLƓFDWLRQ RI PDWHULDO LVVXHV ZDV YHU\ PXFK DOLJQHG ZLWK WKH development of MISC Sustainability Strategy (referred to as ‘the VWUDWHJ\ō 7KH PDWHULDO LVVXHV LGHQWLƓHG DUH PHDQW WR EH DSSOLFDEOH DQG UHOHYDQW XQWLO WKH \HDU WKH ƓQDO \HDU RI WKH FXUUHQW VWUDWHJ\ roadmap), whereupon another materiality assessment will be FRQGXFWHG 7KH ƓYH \HDU VWUDWHJ\ LV HVVHQWLDOO\ WKH SURFHVV DQG WRRO LQ PDQDJLQJ WKH LGHQWLƓHG PDWHULDO DUHDV In deriving the strategy including actions plans, several steps, assessments and engagement sessions had to take place, for the purpose of discovering and identifying issues that were most material WR WKH RUJDQLVDWLRQ DFURVV WKH VL[ LGHQWLƓHG VXVWDLQDELOLW\ SLOODUV 7KLV 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. IDENTIFICATION OF MATERIAL AREAS Benchmarking with peers from the shipping industry To provide a comparison of MISC’s sustainability performance to that of our peers. Workshops with key focal persons across various functions within the Group To assess and agree collectively on the LGHQWLƓHG PDWHULDO DUHDV and prioritise key issues to be addressed for each sustainability pillar. Internal assessment with key personnel Internal stakeholder engagement with key senior personnel across the Group. Benchmarking with internationally recognised best practicing sustainability organisations To provide a comparison of MISC’s sustainability performance to that of other multinational, sustainability best-practicing organisations. Stakeholder engagement Engagement exercise with selected personnel from across the Group and external parties. 1 3 5 2 4