MISC Group

MISC has a comprehensive low-carbon transition plan informed by climate scenario analysis that has considered the implications of a 1.5°C scenario. The boundary of the analysis consists of scope 1 and 2 emissions and material upstream and downstream operations for scope 3 emissions. It also covers the period until 2050 in line with the company’s net-zero target. The results are expressed as value at risk and a range of changing conditions have been considered. The success of the transition plan will be measured through progress on the company’s emissions reduction targets: 50% emissions intensity reduction by 2030 compared to 2008 and net zero by 2050.

MISC invests in R&D of low-carbon vehicles, specifically ammonia-fuelled vessels, through its project The Castor Initiative. However, the company does not disclose what proportion of its R&D expenditure is invested in low-carbon vehicles and energies. The company should ensure that a significant proportion of its R&D investment is in low-carbon vehicles and fuel development.

Between 2015 and 2020, MISC’s scope 1 emissions intensity increased by 7.5% annually. This does not align with the company’s 1.5°C pathway, which requires a 3.9% decrease in its emissions intensity annually. The company claims that the increase is largely due to the disposal of older, more efficient ships and re-fleeting with highly specialised vessels that have a higher fuel consumption. MISC is projected to stay within its 1.5°C cumulative carbon budget between 2021 and 2035. However, with its emissions intensity increasing, the company’s annual emissions will overtake its annual carbon budget from 2030 onwards.

MISC has set a net-zero target for 2050 and an interim target to reduce 50% of its emissions intensity by 2030 compared to 2008. Further, the company has disclosed that it will not use offsets to meet its 2030 target, but it is unclear whether it will use offsets to reach its 2050 commitment. However, the company has not set more interim targets. Setting intermediate targets, spaced at regular intervals no greater than five years apart, will help the company maintain focus on its short- and mid-term progress in addition to committing to long-term change.

The company has set a net-zero target for 2050 and an interim target for 50% reduction in emissions intensity by 2030 compared to 2008. These targets are aligned with the company’s 1.5°C pathway. MISC has disclosed that it will not use offsets to meet its 2030 target and that its 2050 target will rely on offsetting 12% of its emissions.

MISC has co-founded The Castor Initiative, which encourages the use of green ammonia fuel and invests in R&D on ammonia vessels. The initiative expects to introduce the first ammonia dual tankers by 2025. Before 2030, MISC intends to re-fleet with LNG vessels with low methane slip engines and add-on scrubbing technologies. Further, the company expects ammonia technology to be widely available by 2030 and plans to have all low-carbon newbuild vessels.

MISC’s current shipping business model relies on carbon-intensive fuels. The company has installed digital systems to improve vessel efficiency by 2023. In line with its fleet renewal strategy, the company has invested in 11 LNG dual-fuel vessels to be delivered in 2022-2023.

MISC’s emissions intensity increased by 7.5% annually between 2015 and 2020. The company is aware of its emissions trajectory and is attempting to address it in its decarbonisation plan for 2050 that was developed in 2021.

MISC’s low-carbon transition plan strongly relies on the development of new, financially viable, low-carbon fuels and technologies, which are not yet available at scale. MISC will deploy LNG-powered ships as an interim solution and is investing in R&D for ammonia-fuelled ships.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it has a training academy that gives opportunities to students. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and has a process to assess human rights risks in its own operations and among its suppliers. The company also has a grievance mechanism for workers and external stakeholders where they can raise concerns relating to human rights. However, the company can strengthen its performance and disclosure, in particular regarding human rights risk assessments.

The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the age and gender and nationality of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no relevant disclosure was found regarding the company’s lobbying and political engagement actions, or a policy governing these actions.