MISC Group, which provides energy-related maritime solutions and services, is committed to achieving Net-Zero greenhouse gas (GHG) emissions latest by 2050, said president and group CEO Datuk Yee Yang Chien.
Even though the objective is to be achieved by 2050, Yee said MISC has set transitional short to medium-term strategic initiatives. For example, there is a medium-term target of reducing 50 percent GHG intensity from its shipping operations by 2030, compared to the baseline year of 2008.
Yee said in MISC’s Sustainability Report 2021: “We are targeting an additional 10 percent reduction in GHG intensity compared to the IMO 2030 carbon aspiration which sets out for only 40 percent carbon intensity reduction compared to the baseline year of 2008.
“Nonetheless, the journey does not end in 2030 as the Group’s long-term aspiration is to reach Net-Zero GHG emissions by 2050. Although we may consider 30 years a long time, in reality, we have no time to lose.”
According to him, MISC conducted a systematic review of the GHG inventory and carbon commitments last year whereby it revised the organizational boundary to account for the GHG from assets owned or leased that it uses to gain economic benefits.
“We mapped out our GHG emissions against our business plans. In doing so, we could project and set our pathways to ensure that we can progressively reduce our GHG emissions whilst ensuring that our business can continue to grow sustainably long into the future,” he said.
Yee added MISC plans to deploy commercially-viable low-carbon technologies that will allow it to decarbonize its newbuild fleet.
“We will progressively transition to zero-carbon emission vessels (ZEVs) latest by 2030,” Yee said.
One of the key decarbonization projects is the development of an ammonia-fueled ZEV through a partnership in The Castor Initiative, which Yee said exemplified collaboration with partners across the spectrum of the maritime ecosystem, bringing together different specializations, experiences and resources to complete a project. According to Yee, the Group’s target is to commercialize this project by 2024.
MISC is committed to continuously innovating and optimizing operations to both enhance efficiency and minimize environmental impact. It adopted the Task Force on Climate-related Financial Disclosures Framework last year, identified climate-related risks and opportunities, conducted scenario analysis and developed a roadmap to further integrate climate-related risks into strategic planning and risk management processes.
Yee said: “A better understanding of our climate-related risks and opportunities enables us to build our resilience and actualize opportunities in the transition towards a low-carbon economy.
“As we continue to decarbonize our existing business, we will identify new income streams to ensure our financial sustainability amidst the onset of climate change and energy transition. In 2021, we finalized the details of our MISC 2050 strategic framework that will allow us to thrive in the circular and net-zero economy by 2050.”
He also said that the maritime industry must take part and join the greater collective action to limit global warming and facilitate a just transition towards a thriving, low-carbon economy.
“To achieve this global ambition, we must pledge our commitment and seize the opportunities to collaborate, innovate and accelerate the efforts to shape a dynamic, resilient and sustainable maritime future ahead.”
Yee said MISC is recognized by FTSE4Good Bursa Malaysia Index, a global sustainability index, for solid corporate governance performance with a full score for three consecutive years. MISC has been maintaining its position as a constituent in the index for eight years in a row.
Photo credit: iStock/ nattapon1975
