Fraser & Neave Holdings Bhd Sustainability Report 2019

OUR APPROACH During the past year, we engaged with over 3,100 global and local suppliers across our supply chain, including manufacturers, wholesalers, retailers, importer/merchants, contractors and professional services providers. We recognise that sustainability in our own operations is futile, unless we also work with these partners to ensure best practice across our supply chain for all sustainability issues. F&NHB promotes sustainable and responsible procurement and sourcing via risk management and conscientious supplier selection. We are a member of the Supplier Ethical Data Exchange and conduct regular audits on our suppliers to ensure standards and practices for food safety and the environment are maintained throughout the value chain. F&NHB supports the UN Guiding Principles on Business and Human Rights across our value chain. Next year, we aim to introduce a ‘Supplier Guiding Principles’, which will cover areas and standards which we abide by in relation to: child labour; forced labour; promotion of non-discrimination and equal opportunities; freedom of association; collective bargaining; the elimination of excessive working hours; fair minimum wages; and health and safety standards, thereby applying our circular economy principles beyond our own operations. 11% Direct Materials 89% Indirect Materials 71% Direct Materials 29% Indirect Materials Direct Materials • Packaging materials • Ingredient and raw ingredients • Auxiliary materials • Co-packing • Finished & trading goods Indirect Materials • Sales and marketing • Logistic and warehousing • Engineering and site services • Administration • Others S P E N T P R O P O R T I O N B Y T Y P E O F M A T E R I A L S I N F Y 2 0 1 9 S U P P L I E R P R O P O R T I O N B Y T Y P E O F M A T E R I A L S I N F Y 2 0 1 9 Supplier Categories Our Procurement Policy covers our full commitment to standard principles of ethical business practices throughout the supply chain. While we have a business imperative to obtain goods and services at the best price in a timely manner, this is done only through means that adhere to guidelines and principles of fair play and transparency. WWW . F N . C O M . M Y F R A S E R & N E A V E H O L D I N G S B H D 084 RESPONSIBLE SUPPLY CHAIN