Fraser & Neave Holdings Bhd Sustainability Report 2019

OUR MATERIAL ISSUES We undertook our first materiality assessment in 2017 to assess our most important sustainability issues. This assessment was based on three steps: Identification; Prioritisation; and Validation. FY2019 MATERIALITY MATRIX Following the initial materiality exercise in 2017, we have continued to review the 15 materiality issues every year. In 2018, the ‘Talent Management’ issue became increasingly important to the Group in light of our growth and innovation agenda. Over the past year, awareness about plastics has grown globally and locally. The Malaysian Government has published a ‘Roadmap Towards Zero Single-use Plastics 2018-2030’. The group has assessed the materiality of the ‘Packaging’ issue to be ‘high’ in 2019. For a more holistic reporting, this year we have sub-sumed a) the ‘Health and Nutrition’ issue under ‘Consumer Health & Safety’ and ‘Creating Value for Society’; and b) the ‘Route Planning’ issue under ‘Energy & Climate Change’ to be aligned with the circular economy approach. Hence, there are now 13 materiality issues for F&NHB. S T E P 1 : I D E N T I F I C A T I O N We first conducted a comparative analysis of sustainability issues identified by global initiatives (such as the United Nation Sustainable Development Goals) and best practices of peer companies in the industry. These issues were then discussed within the SMC to identify the ones of most relevance for F&N. Our employees were surveyed in order to make sure that our identification process was accurate, and a list of 15 key issues was finalised. S T E P 2 : P R I O R I T I S A T I O N To prioritise our sustainability issues, we engaged department heads, the C-suite, and board directors in a materiality workshop. The workshop involved an in- depth discussion of each identified sustainability issue, including the possibility of impacts to our business and stakeholders. Each issue was then prioritised on a scale of ‘moderate’ to ‘high’. S T E P 3 : V A L I D A T I O N After the preliminary materiality matrix was developed, we proceeded to validate the matrix through engagements with the SMC and the Board. High High Moderate Importance to stakeholders Importance to business • Consumer Health and Safety • Water Stewardship • Economic Performance • Occupational Health and Safety • Energy and Climate Change • Effluents and Waste • Innovation • Creating Value for Society • Product and Service Labelling • Sustainable Sourcing • Market Presence • Talent Management • Packaging WWW . F N . C O M . M Y 024 F R A S E R & N E A V E H O L D I N G S B H D OUR SUSTAINABILITY APPROACH