Fraser & Neave Holdings Bhd Sustainability Report 2021

During 2020, F&N Group conducted a robust materiality assessment and stakeholder engagement to evaluate our most important sustainability issues. This assessment was based on three steps: Identification, Prioritisation and Validation. These are the key changes we made this year compared to our previous report: • Separation of ‘Consumer Health & Safety’ into ‘Nutrition’ and ‘Product Health & Safety’ • Merged two issues – ‘Creating Value for Society’ and ‘Market Presence’ into ‘Community Development & Inclusive Growth’ • Addition of four new issues: Human Rights, Supply Chain Stewardship, Governance & Ethics, Policy & Regulation We identified 18 material issues for F&N. Our most significant material issues ‘Packaging’ and ‘Nutrition’ continue to be priority issues for customers and consumers – reflecting two areas where our business can make significant impacts. Material issues that are closely interconnected are our highest priority material issues. For example, innovation and supply chain stewardship underpin our progress relating to nutrition, packaging and water stewardship. We will continue to review our material issues annually. • Finally, we conducted a materiality workshop with department heads, the C-suite and board directors to review and validate the prioritisation of material sustainability issues. The workshop involved an in-depth discussion of each identified sustainability issue, including the possibility of impacts to our business and stakeholders. • We first conducted a trends and peer analysis to identify possible sustainability issues for our business, including noting changes since our last assessment. • Through a survey of peer best practices, desktop research into sustainability trends, and a review of global initiatives and frameworks, we arrived at a list of 50 sustainability issues • To prioritise our sustainability issues, we engaged internal and external stakeholders. • 954 employees were surveyed from across our business. • Interviews with 17 key external stakeholders including suppliers, customers, thought- leaders and regulators. • Workshops with over 50 participants of senior leaders, department heads and subject matter experts in Malaysia and Singapore. • Based on the stakeholder inputs, we refined our list of issues to prioritised issues from ‘moderate’ to ‘high’. STEP 1: Identification STEP 2: Prioritisation STEP 3: Validation Supply Chain Stewardship 3.00 2.00 1.00 0.00 1.00 2.00 3.00 Degree of stakeholder concern Packaging Innovation Nutrition Water Stewardship Product & Service Labelling Product Quality & Safety Climate Change Waste Management Biodiversity Community Development and Inclusive Growth Human Rights Governance & Ethics Policy & Regulation Economic Performance Human Capital Development Energy Employee Safety, Health and Well-being F&N MATERIALITY MATRIX Impact on F&N 024 F&N Sustainability Priorities