Fraser & Neave Holdings Bhd Sustainability Report 2019

Halal Sourcing Partnership Programme As a major producer of Halal products in Malaysia, F&NHB is in a position to facilitate the development of the nation’s Halal industry. This year, F&NHB collaborated with Halal Industry Development Corporation (HDC) on the Halal Sourcing Partnership Programme (HSPP). Through this collaboration, F&NHB shared Halal industry best practices whilst providing technical advice and knowledge transfer to small and medium enterprises (SMEs). 37 SMEs showcased their products during the pitching sessions in Penang and Kuala Lumpur. Successful companies then underwent further screening, coaching and monitoring to elevate their capability to be qualified as Halal vendors for multi-national corporations. GRI 416-2: Incidents of Non-Compliance concerning the Health and Safety Impacts of Products and Services Screening our Suppliers At F&NHB, we have a systematic screening process for all potential new suppliers using environmental and social criteria. These criteria reflect our commitments towards the environment (such as reducing waste, pollution and water resources) and society (including human rights and labour practices). We also assess the environmental performance of our raw materials and primary packaging suppliers annually by verifying if they have: implemented an environmental policy 01 undertaken audits to monitor their environmental performance and compliance 02 maintained an ISO 14001 compliant environmental management system 03 Addressing Risks in our Supply Chain High or variable costs and uncertain availability of raw materials pose commercial risks to F&NHB. We therefore undertake risk assessments on our suppliers’ prices and capacity to deliver goods and services. For key risks, we have established Business Continuity Plans to proactively ensure product supply. Annual supplier audits are conducted to ensure compliance with food safety regulations and standards. We assess a range of quality assurance and food security criteria to safeguard the health of consumers and the safety of workers in our supply chain. Criteria include the implementation and monitoring of good manufacturing processes, use of protective clothing, food safety management systems, and chemical management. Non-compliant or underperforming suppliers must demonstrate that they are committed to taking corrective actions within a pre-defined period or risk having their contracts terminated. This year, all critical suppliers were audited on food safety regulations and standards, and none was found to be in non- compliance. 0 incident of non-compliance with food safety regulations and standards. 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 086 RESPONSIBLE SUPPLY CHAIN