how climate change affects MISC Berhad

how clime metamorphose affects MISC BerhadThe aim of this report is to identify the effects of humour change towards MISC Berhad. MISC berhad is a association renowned for its transportation system overhaul end-to-end the world. As one of the biggest firms in Malaysia, MISC has a reputation to maintain as non wholly as one of the longest transferral companies naturalized, however in any case one of the largest shipping gild in the world. Without a doubt, temper is a crucial grapple in the present and besides the future future. Due to the effects of mode change, mankind itself is at risk to uncivilised and even fatal threats. The world has come united to find ship wadal to reduce emissions of developed or developing countries to the minimal as possible, handle in the Copenhagen Summit. None the little, Malaysia took minor but meaningful steps exchangeable the no plastic bag days in selected states in the country.The iv keister lines were aimd to evaluate the performance of MISC Berhad. To counter the ever changing needs, MISC Berhad implements economic and financial bottom line, social, environmental and corporate governance bottom line to fill the needs and ensure its survival in the industry. by dint of group brainstorming, it would be assumed that MISC Berhad would be affected by mood change in various aspects. Pressure from remote offices, a lower in total sales, delay of shipping clock, the well-being of employees on identity card the ship and an increment in cost are problems the company would reflection through climate change. The problems would be bedded through K.T. Situational Appraisal which would in malefactor result in knowing the main problem, which in this fact is the insisting from out-of-door push backs. The the duncker diagram, KT b other Analysis and Decision Analysis was therefore prepared in accordance to the main problem.As the climate differs from meter to time, MISC Berhad would need to prepar e itself for the threats faced and ensure that problems would be of minimal bear upon to the company. MISC Berhad would need to eradicate the shove from external forces to keep a close reputation in hand. The company would report its status to the stakeholders on a timely basis and make necessary amendments to the company to further put up its performance. The company should alike practice environmental friendly activities within the company and not only reduce its coke footprint of its operations.The report too further discusses some solutions to the main problem face by MISC berhad, where MISC Berhad should carry off with the WWF and other environmentalist organizations to tense up an applicable and practical solution to the carbon footprint left by the company to mother earth.Table of confineTopicIntroduction1.1 Bottom lines a. Economic and Financialb. Socialc. environmentald. corporate GovernanceBackground IssuesProblem Statement and Ranking natural selectionSoluti onsRationale RecommendationConclusionReferencesAppendices1.0 IntroductionThe idea of this report is to area of operations how climate change is impacting on MISC Berhad and how MISC Berhad is responding to the changes. MISC Berhad was integrated in 1968 as Malaysia globalistic Shipping Corporation Berhad and is the top international shipping line of Malaysia (MISC Berhad 2010. It is presently the third largest shipping corporation in the world by merchandise capitalization (MISC Berhad 2010). From being merely a shipping line in 1968, MISC has experience a richly integrated ocean, offshore floating solutions, cloggy engineering and logistics services provider (MISC Berhad 2010). Now, with a modern and well-diversified task force, MISC provides steadfast, safe, well-organized and emulous shipping services both locally and internationally. MISCs vision is to be a global champion in the provision of logistics services and supply grasp solutions (2004 MISC Integrated Logist ics Sdn Bhd). In addition, its goal is to entirely service its customers global crude transport requirements.Lately climate change has taken a early-time turn in the recent past. Global warming has ca apply climate change callable to the join on of average earth temperature in accordance of what is known as the greenhouse effect. As the greenhouse gases accumulate in the atmosphere the creation gets hotter (Young People Trust for the Environment). In addition to that, Televisions, exonerateds and computers use electricity that is created generally from burning coal. Every time we switch on a light we are adding to the greenhouse effect (Young People Trust for the Environment).Due to the climate change, protecting the environment in which the ships operate is vital. The company are conducting tests for use of a refreshful hull coating system to reduce emissions that leave behind pollute the environment (Impressions of AET 2009). Oil spill training was organised to awake(pr edicate) them of the oil spill awareness.1.1 Bottom Linea. Economic and FinancialMISC berhad reports its companys cash flow and financial statuses through a series of statements which are getable in the annual report. The company recorded an direct pay of RM1, 914.4 trillion from RM2, 585.7 from year of 2008. Data shows that the company suffered a reduction in simoleons of RM671.3 million which is equivalent to 26% against the profit of year 2008. MISC berhad reports that this loss was mainly excited by the loss in the Integrated Linear Logistics segment (MISC yearly pass over 2009).MISC would be affected economically and financially by climate change as MISC is a shipping company and serious tolerate alterations would greatly impact on shipping schedule and arrival of shipments. Customers of MISC would be in risk of having important deliveries arriving on a delayed finale where not only would MISC suffer a loss of profit, but overly the customer would be losing valuable r esources which are in need. Consumers of MISCs services would convey unsatisfactorily deny usage of the companys service as due to climate change, consumers would rather use companies of nearer infinite 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 involved in the climate changes occurring, MISC peck opt for the transporting vehicles used to be upgraded to a faster speed to reduce travelling period. MISC can also consider using eco-friendly upgrading to further ensure reduced problems in the future as the transportation used by the company consumes a high capacity of fuel which go out in turn misuse the environment.b. Corporate Social ResponsibilityThe social bottom line pays business organisation on the effects of every action taken by a company towards the society welfare (Elkington 2005). CSR is about the interaction of the corporation with the statutory and social obligati ons of the societies in which it operates, and how it accounts for those obligations (WBCFD 2010).MISC had built the youth development which focuses on teaching method that link up to their core business and personal development. Moreover, MISC had built a maritime training academy which is known as Akademi Laut Malaysia (ALAM) to ensure that youth have the skilled and workmanlike personnel as well as to wait on course towards becoming a leading maritime nation. Furthermore, MISC also provided sponsorship for students to further their education for both locally or overoceans. Consequently, MISC are also caring for their corporate citizen as to create avenue for their personnel.c. Environmentald. Corporate GovernanceThe Board of Directors of MISC Berhad is devoted in ensuring the highest standards of corporate governance are practise throughout the MISC Berhad Group (MISC Berhad Annual news report 2009). The Board fully supports the principles of Corporate Governance as laid dow n in the Malaysian Code of Corporate Governance. Corporate Governance is the key to achieve competent and high quality shipping operations that delivers quality to customers and stakeholders (MISC Berhad Annual Report 2009). The Board of Directors of public listed companies are required to maintain a salutary system of inbred control to safeguard shareholders investment and the Groups as bent-grasss (MISC Berhad Annual Report 2009).Additionally, the company is coping with low global demand and reductions in calling volume (MISC Berhad Annual Report 2009). They will find out new value-added services and realign its business strategies in the non-energy section to improve its send in the coming year (Impressions of AET 2009). The business keeps its shareholders and other stakeholders informed of its end making process by defining risk parameters and standards guided by the corporate objective (Impressions of AET 2009). This is to maximise long term shareholders value at the same time as meeting the needs of the customers, employees and all related stakeholders.2.0 Background IssuesThe main issue discuss by our group is the pressure from the external force followed by slight profit generated due to drop-off in sales and shipping time delayed.The green organizations are established to give limits and encourage companies to reduce their emissions that can harm the environment. Thus, this is one of the pressures from the external force that can be able to influence the customers perspectives. For example, WWF will suggest the company to reduce shipping activities due to the emission of CO2 and if no action is taken, the company would face serious hardship.As the world is working towards saving the environment, there will fewer purchases on oil, coal that will harm the environment. If certain companies would compulsion to save the environment and prevent less of climate change that drastic, this will affect MISCs sales too. This will cause a fall in the num ber of sales.Thirdly, the shipping time to reach its destination might be delayed. The melting of polar ice causes sea aim rises which makes more difficult for the ship to harbor. The company might want to be prepared for the extreme and highly variable environmental conditions, mainly in the Southern Ocean, for example (Impacts of Climate Change on the naval Industry Conference 2008).3.0 Problem Statement Ranking Solutionharmonize to the K.T situational appraisal (Appendix 1), it ranks the problem by their importance (Fogler LeBlanc 2008). In this case, the top class-conscious issue of climate change that affect MISC is the pressure from external force such as WWF and IMO. According to WWF Malaysia (2010), they recognises that the role of Business and Industry (BI) as catalysts to reduce the CO2 emission and may at best become part of the solution to CO2 reduction. Therefore, this will directly affected the MISC as WWF aims to engage with BI in working towards changing practi ces as a solution to climate change. For IMO (2009), work on prevention of air defilement and control of greenhouse gas emissions from ship engaged in international trade is their main objective.Secondly, the issue for MISC would be the sales decreased. This is due to the outturn of petroleum and chemical is the cause of climate changed, thus it will force to reduce the production and directly affected the sales of MISC. Moreover, the third ranked problem is the shipping time delayed as the sea level had increase due to the ice melting in the North celestial pole lead vessel difficult to anchor safely. The forth ranked issue is the safety of employees as the natural disaster could cause in jeopardy situation during shipping time. Lastly, the fifth ranked problem for MISC is the cost increase as they need to build more advances mechanism for their ships that has clean emission.K.T. Problem Analysis (Appendix 2) is one of the most useful tools in troubleshooting an operation (Fogle r LeBlanc 2008). The major(ip) problem is the pressure from external force but is not from the internal force. The distinction is the WWF put pressure on MISC as the emission from shipping caused air pollution which is the WWFs concern. The problem occurred globally but not only happened in Malaysia. The reason is the emission of CO2 is not confined by territorial borders but in the atmosphere. The problem occurs when shipping activities are operating on the ocean but not anchor on the harbour. However, shipping activities is the main business for MISC. The extent of the problem is the related to the business field which produce CO2 lead global warming but not the business field that doesnt affect the climate change. The distinction is able to breed and control the amount of CO2 that emitted.From the Duncker diagram (Appendix 3), the top problem for MISC is the pressure from external forces. If okay to solve the problem, the solution would be the try to achieve WWFs concern by t rim down the shipping activities. Besides that, it can act with the external force which is to make agreement with the IMO or WWF. Moreover, MISC can change the major transportation from shipping to submarine or airplane. On the other hand, if it is not okay to solve the problem, the solution can be increase the corporate social responsibility by sponsoring for environmental campaign. Furthermore, it also can try to fulfil other stakeholders by providing better service for customers.4.0 SolutionsAs the main issues is the pressure from the external force, less profit generated due to decrease in sales and shipping time delayed.The suggested solutions to encounter the pressure from the external force would be trying to fulfill WWFs concern by reducing shipping activities or carry off with WWF to come out with an agreement. In addition, upgrading the oil tanker that can reduce the emissions of gas will be another suggested ways.On top of that, to maintain the profit, the company wou ld have to lower the price of the petroleum as it would be less expensive compared to an alternative ways that is less harmful to the environment.Lastly, the company would have to upgrade the tanker engine and set up branch companies in overseas land. This mean they would have the fund there and then, so whenever there is orders nearby it could be deliver as soon as possible.5.0 Rational RecommendationAfter deliberation and a further understanding of the companys needs, our group would recommend MISC Berhad to negotiate and reach a consensus with the IMO. Besides that, MISC Berhad should also put its involvement in caring for the environment as one of its major priorities. Our group also recommends the shipping company to place a larger sum of its taxation into research to reduce the current level of emissions given out by the companys operations. These steps would aid MISC berhad to have peaceful and safe(p) remarks from multiple major environmentalist organizations as the comp any has taken a huge leap into achieving an eco-friendly company. It would build a reputable name for the company and it would also be seen as a pioneer of shipping companies which took the first steps into reaching an environmental goal.6.0 Conclusion