Posted on 01st November 2020
Fraser & Neave Holdings Bhd (“F&NHB” or “the Group”) continues to elevate its environmental stewardship with RM30 million investment into energy conservation. As part of the investment, F&NHB is embarking on an ambitious 10MWp solar roof projects at its plants in Shah Alam, Pulau Indah and Bentong.
F&NHB will replace at least 20 per cent of its total energy requirement in Malaysia with clean energy by 2022. The solar projects are part of RM30 million commitment to be utilised over the next two years into renewable energy programmes and projects that contribute to energy efficiency and carbon emission reduction.
F&NHB Chief Executive Officer, Lim Yew Hoe said, “The unprecedented situation caused by COVID-19 has reaffirmed the importance of our stakeholders to our business continuity. Thus, we now place even greater urgency on the need to manage environmental and social risks that could affect the lives and livelihood of our employees, suppliers, customers, as well as the community. We have the responsibility to address them and drive positive impact along our value chain.”
In April 2020, the Group commissioned its first solar photovoltaic (PV) system at Rojana plant in Thailand. The 30 million Baht solar roof, with a generating capacity of 1MWp, has reduced the plant’s energy offtake from the grid, lowering both energy cost as well as carbon footprint in its operations. Next, the 10 MWp of total solar energy capacity at its Shah Alam, Pulau Indah and Bentong plants in Malaysia, once completed in 2021, will generate clean energy equivalent to the electricity consumption of 3,700 typical households in the country.
“Our renewable energy programme also supports the Government’s target of reducing the country’s Green House Gas intensity and ensuring sustainable energy plays a critical part in the country’s economic development and environmental conservation. The new initiatives will build on the work that is already underway to minimise the environmental impact of our operations,” Lim added.
Reducing Our Carbon Footprint
Mr Lim said that a large part of the Group’s RM800 million capex investment over the last five years is aimed at achieving operational and cost efficiencies through economies of scale and shortening the route to the different markets. And every project also has its equally important environmental goals.
“For example, F&NHB’s new warehouse at Shah Alam, and the Regional Distribution Centre (RDC) in Rojana, Thailand, both expected to be operational in the second quarter of 2021, will significantly reduce shunting and double handling between our plants and third-party warehouses. Meanwhile, the installation of Automated Storage and Retrieval System (ASRS) at both warehouses will almost eradicate the use of forklifts, thus cutting our fuel usage and greenhouse gas emission,” he added.
Responsible Supply Chain
The size and reach of F&NHB operations lend immense potential to create social and economic value along its supply chain.
The Group source raw materials that are certified with eco-credentials, such as those from the Forest Stewardship Council and Certified Sustainable Palm Oil (CSPO) to ensure that they are produced in an environmentally and socially responsible manner.
According to Lim, the Group have made further progress in this regard in 2020. “Having achieved our target of purchasing Roundtable on Sustainable Palm Oil (RSPO) credits for all our palm oil requirements in 2020, we now target to use only RSPO-certified palm oil by 2025. We have also become a founding member of a coalition of manufacturers in Malaysia that seeks to promote a more sustainable future through the recycling of post-consumption packaging waste,” he said.
F&NHB is also working jointly with its partners across the value chain, such as supplier cooperatives and the Government to drive social progress through environmental stewardship.
Since 2013, the Group has been collaborating with local Thailand-based farmers in cooperatives which supply F&NHB with milk. Building on a long-established relationship, F&NHB began a three-year Farming Excellence programme in 2019, which is helping 2,200 dairy farms enhance the quantity and quality of their milk while reducing energy consumption and waste at their farm. This will translate into higher productivity and income for the farmers.
F&NHB also continue to nurture a generation of young ecowarriors by promoting 5R principles (Reduce, Reuse, Recycle, Rethink, and Reinvent) through the F&N school recycling programme, participated by more than 700 schools across Malaysia. The programme, a collaboration with local councils and recycling partners, has so far collected more than 4.76 million kilogrammes of recyclables, saving them from going into landfill.
“While managing the pandemic’s impact on our business, we believe that continual progress in our sustainability performance is equally critical to ensure future prosperity for all. Through our inclusive growth strategy, F&NHB will continue to promote energy conservation effectively and grow our business responsibly for our future generations,” Lim concluded.