how local climate change influences MISC Berhad

The goal of this report is to recognize the effects of environment change towards MISC Berhad. MISC berhad is a company renowned because of its shipping services throughout the world. As one of the biggest firms in Malaysia, MISC has a reputation to keep as not only as one of the longest delivery companies proven, but also one of the largest shipping company in the world. Certainly, climate is a crucial issue in the present as well as the upcoming future. Because of the effects of environment change, mankind itself is at risk to unsafe and even fatal dangers. The world has come united to find ways to reduce emissions of developed or producing countries to the minimal as possible, like in the Copenhagen Summit. Nonetheless, Malaysia took small but significant steps like the "no plastic material bag" days in selected says in the united states.

The four bottom level lines were used to judge the performance of MISC Berhad. To counter the ever changing needs, MISC Berhad implements economical and financial important thing, communal, environmental and corporate and business governance important thing to fill the needs and ensure its success on the market. Through group brainstorming, it would be assumed that MISC Berhad would be affected by environment change in a variety of aspects. Pressure from exterior forces, a reduction in total sales, hold off of transport time, the well-being of employees on board the dispatch and an increment in cost are problems the company would face through local climate change. The issues would be ranked through K. T. Situational Appraisal which would in turn cause knowing the main problem, which in cases like this is the pressure from exterior causes. The the duncker diagram, KT Problem Examination and Decision Evaluation was then ready relating to the primary problem.

As the environment differs every once in awhile, MISC Berhad would need to put together itself for the dangers confronted and ensure that problems would be of minimal impact to the business. MISC Berhad would need to get rid of the pressure from external causes to keep a good reputation at hand. The business would report its position to the stakeholders over a timely basis and make necessary amendments to the business to further enhance its performance. The company also needs to practice environmental friendly activities within the company and not only reduce its carbon footprint of its businesses. The statement also further discusses some solutions to the main problem face by MISC berhad, where MISC Berhad should discuss with the WWF and other environmentalist organizations to reach an relevant and practical treatment for the carbon footprint left by the business to nature.

Table of Contents



1. 1 Bottom level lines - a. Economic and Financial

b. Social

c. Environmental

d. Corporate Governance

Background Issues

Problem Assertion and Standing & Selection


Rationale & Recommendation




1. 0 Introduction

The idea of this survey is to review how weather change is impacting on MISC Berhad and how MISC Berhad is responding to the changes. MISC Berhad was included in 1968 as Malaysia International Delivery Corporation Berhad and it is the very best international shipping line of Malaysia (MISC Berhad 2010. It really is the third largest shipping corporation on earth by market capitalization (MISC Berhad 2010). From being only a shipping brand in 1968, MISC has turned into a fully integrated maritime, offshore floating solutions, heavy executive and logistics services specialist (MISC Berhad 2010). Now, with a modern and well-diversified process pressure, MISC provides steadfast, safe, well-organized and competitive shipping and delivery services both locally and internationally. MISC's vision is usually to be a global champion in the provision of logistics services and supply chain solutions (2004 MISC Integrated Logistics Sdn Bhd). In addition, its goal is to totally service its customers' global engine oil transportation requirements.

Lately local climate change has considered a first-time turn in the recent times. Global warming has induced climate change due to the increase of average earth temperature in accordance of what is known as the greenhouse result. As the greenhouse gases accumulate in the atmosphere the Earth gets hotter (TEENAGERS Trust for the surroundings). Moreover, Televisions, signals and pcs use electricity that is created mainly from using coal. Each time we switch on a light we are adding to the greenhouse result (Young People Trust for the Environment).

Due to the weather change, protecting the surroundings in which the ships operate is essential. The company are conducting testing for use of a fresh hull covering system to reduce emissions that will pollute the environment (Impressions of AET 2009). Olive oil spill training was organised to aware them of the petrol spill awareness.

1. 1 Lower part Line

a. Economic and Financial

MISC berhad reviews its company's cash flow and financial statuses through a series of statements which can be purchased in the annual record. The company noted an operating revenue of RM1, 914. 4 million from RM2, 585. 7 from season of 2008. Data shows that the company experienced a decrease in revenue of RM671. 3 million which is equivalent to 26% up against the profit of year 2008. MISC berhad records that this reduction was mainly triggered by losing in the Integrated Linear Logistics portion (MISC Annual Statement 2009).

MISC would be damaged economically and fiscally by weather change as MISC is a shipment company and serious weather modifications would greatly impact on shipping agenda and entrance of shipments. Customers of MISC would be in risk of having important deliveries arriving over a delayed period where not only would MISC suffer from a loss of profit, but also the customer would be sacrificing valuable resources that happen to be in need. Consumers of MISC`s services would have unsatisfactorily deny utilization of the company`s service as credited to climate change, consumers would rather use companies of nearer distance or even opt to pay more for on time deliveries. MISC might lose credible customers and thus be reduced of profit to the company. Knowing the risks mixed up in climate changes taking place, MISC can choose the transporting vehicles used to be upgraded to a faster quickness to lessen travelling period. MISC can also consider using eco-friendly upgrading to further ensure reduced problems in the foreseeable future as the travel used by the company consumes a high capacity of petrol which will subsequently harm the environment.

b. Corporate Public Responsibility

The social bottom line pays matter on the consequences of every action taken by a business towards the world welfare (Elkington 2005). CSR is approximately the conversation of the corporation with the legal and communal responsibilities of the societies in which it operates, and how it makes up about those responsibilities (WBCFD 2010).

MISC possessed built the young ones development which focuses on education that related to their center business and personal development. Additionally, MISC had built a maritime training academy which is known as Akademi Laut Malaysia (ALAM) to ensure that young ones contain the skilled and competent workers as well as to stay on course towards learning to be a leading maritime nation. Furthermore, MISC also provided sponsorship for students to further their education for both locally or overseas. Consequently, MISC are also looking after their corporate citizen concerning create avenue for their personnel.

c. Environmental

d. Corporate and business Governance

The Panel of Directors of MISC Berhad is committed in ensuring the highest standards of corporate governance are practise throughout the MISC Berhad Group (MISC Berhad Total annual Report 2009). The Panel fully helps the rules of Commercial Governance as laid down in the Malaysian Code of Corporate Governance. Commercial Governance is the main element to achieve competent and high quality transport operations that provides quality to customers and stakeholders (MISC Berhad Total annual Survey 2009). The Table of Directors of general public listed companies are required to maintain a audio system of inside control to safeguard shareholders' investment and the Group's resources (MISC Berhad Total annual Report 2009).

Additionally, the business is dealing with low global demand and reductions in trade volume level (MISC Berhad Total annual Report 2009). They will find out new value-added services and realign its business strategies in the non-energy section to boost its position in the year ahead (Impressions of AET 2009). The business enterprise helps to keep its shareholders and other stakeholders up to date of its decision making process by defining risk variables and standards led by the corporate objective (Impressions of AET 2009). That is to maximise long term shareholders' value at the same time as meeting the needs of the clients, employees and all related stakeholders.

2. 0 Qualifications Issues

The main concern discuss by our group is the pressure from the exterior force accompanied by less profit generated due to decrease in sales and shipping time delayed.

The inexperienced organizations are set up to give limitations and encourage companies to lessen their emissions that could harm the surroundings. Thus, this is one of the pressures from the exterior force that can be able to impact the customer's perspectives. For instance, WWF will inform the company to lessen shipping activities due to the emission of CO2 of course, if no action is considered, the business would face serious hardship.

As the earth is working towards keeping the surroundings, there will fewer purchases on petroleum, coal that will damage the surroundings. If certain companies would like to save the environment preventing less of environment change that radical, this will have an impact on MISC's sales too. This will cause a fall season in the amount of sales.

Thirdly, the transport time to attain its destination might be postponed. The melting of polar glaciers triggers sea level goes up which makes more challenging for the ship to harbor. The business should be prepared for the extreme and highly varying environmental conditions, principally in the Southern Sea, for example (Effects of Climate Change on the Maritime Industry Meeting 2008).

3. 0 Problem Affirmation Standing & Solution

According to the K. T situational appraisal (Appendix 1), it rates the condition by their importance (Fogler & LeBlanc 2008). In this case, the top rated issue of climate change that have an effect on MISC is the pressure from exterior force such as WWF and IMO. Regarding to WWF Malaysia (2010), they recognises that the role of Business and Industry (B&I) as catalysts to lessen the CO2 emission and could at best become area of the treatment for CO2 reduction. Therefore, this will directly damaged the MISC as WWF seeks to activate with B&I in working towards changing practices as a solution to climate change. For IMO (2009), work on prevention of polluting of the environment and control of greenhouse gas emissions from ship employed in international trade is their main aim.

Secondly, the issue for MISC is the sales decreased. That is due to the development of petroleum and substance is the cause of climate improved, thus it'll force to reduce the creation and directly influenced the sales of MISC. Additionally, the third placed problem is the transport time postponed as the sea level got increase due to the glaciers melting in the North Pole business lead vessel difficult to anchor safely and securely. The forth rated concern is the safe practices of employees as the natural catastrophe could cause in danger situation during shipping and delivery time. Last but not least, the fifth ranked problem for MISC is the price increased as they need to build more innovations mechanism for their ships that has clean emission.

K. T. Problem Research (Appendix 2) is one of the very most useful tools in troubleshooting an procedure (Fogler & LeBlanc 2008). The major problem is the pressure from exterior push but is not from the inner force. The differentiation is the WWF put pressure on MISC as the emission from shipping and delivery caused polluting of the environment which is the WWF's concern. The problem took place globally however, not only occurred in Malaysia. Associated with the emission of CO2 is not confined by territorial edges however in the atmosphere. The trouble occurs when shipment activities are functioning on the ocean however, not anchor on the harbour. However, shipping and delivery activities is the key business for MISC. The magnitude of the problem is the related to the business field which produce CO2 lead global warming but not the business enterprise field it doesn't affect the local climate change. The differentiation is able to observe and control the amount of CO2 that emitted.

From the Duncker diagram (Appendix 3), the very best problem for MISC is the pressure from external forces. If ok to solve the condition, the solution is the try to fulfil WWF's matter by reducing the transport activities. Besides that, it can work out with the external pressure which is to make contract with the IMO or WWF. Furthermore, MISC can change the major travelling from shipping to submarine or airplane. On the other hand, if it's not okay to resolve the problem, the answer can be improve the corporate cultural responsibility by sponsoring for environmental campaign. Furthermore, it can also try to fulfil other stakeholders by giving better service for customers.

4. 0 Solutions

As the key issues is the pressure from the external force, less earnings generated due to decrease in sales and transport time postponed.

The suggested solutions to encounter the pressure from the external make would be seeking to fulfill WWF's concern by reducing shipping and delivery activities or work out with WWF to come out with an agreement. In addition, improving the tanker that can reduce the emissions of gas will be another suggested ways.

On top of this, to keep up the profit, the company would have to lower the price tag on the petroleum as it might be less expensive in comparison to an alternative techniques is less harmful to the surroundings.

Lastly, the company would need to up grade the tanker engine unit and setup branch companies in international land. This mean they would have the safe-keeping there and then, so whenever there is certainly orders nearby it could be deliver as soon as possible.

5. 0 Rational & Recommendation

After deliberation and an additional understanding of the company`s needs, our group would recommend MISC Berhad to discuss and reach a consensus with the IMO. Besides that, MISC Berhad also needs to put its involvement in caring for the environment as one of its major priorities. Our group also suggests the shipping company to place a larger sum of its earnings into research to reduce the current level of emissions given out by the company`s operations. These steps would aid MISC berhad to own peaceful and good remarks from multiple major environmentalist organizations as the business has taken an enormous leap into obtaining an eco-friendly company. It would build a reputable name for the business and it could also be observed as a pioneer of delivery companies which had taken the first steps into achieving an environmental goal.

6. 0 Conclusion

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