Fraser & Neave Holdings Bhd Sustainability Report 2019

Supporting Local Suppliers F&NHB engages with local suppliers where possible to support the local economy and minimise environmental impacts from transportation. More than 94% of our suppliers are local, representing more than 79% of our purchase value expenditures. FY2019 FY2018 FY2017 92.15% 95.91% 95.00% 93.66% 99.87% 95.90% Malaysia Thailand P E R C E N T A G E O F L O C A L S U P P L I E R S P E R C E N T A G E O F P U R C H A S E V A L U E S P E N T O N L O C A L S U P P L I E R S FY2019 FY2018 FY2017 Malaysia Thailand 64.61% 82.09% 73.17% 84.46% 81.51% 77.76% Note: 1. Local suppliers refer to a group of suppliers who operate their business in the country where as F&NHB’s operation is located, which are Malaysia, Brunei, Thailand and IndoChina. P U R C H A S E O F R S P O C R E D I T S FY2019 FY2018 FY2017 50 3,600 Target for 2020 Malaysia Thailand 8,400 13,000 12,000 19,000 5,000 3,000 Certification We source raw materials which are certified with eco-credentials, such as the Forest Stewardship Council (FSC) and Certified Sustainable Palm Oil (CSPO), to ensure that they are produced in an environmentally and sociably responsible manner. All paper products used in the tetra packaging of our beverages carries the certification. We have a roadmap to purchase RSPO credits for 100% of our projected palm oil usage in 2020. This year, we have reached our interim target and purchased a total of 33,050 credits to-date, representing about 70% of our palm oil usage. RSPO issues credits which act as proof that one tonne of certified palm oil was produced by an RSPO-certified company or independent producer and has entered the global palm oil supply chain. F&NHB purchases RSPO Credits to support the production of certified sustainable palm oil. 13,000 RSPO Credits bought in Malaysia 8,400 RSPO Credits bought in Thailand O U R P E R F O R M A N C E H I G H L I G H T S 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 088 RESPONSIBLE SUPPLY CHAIN