Fraser & Neave Holdings Bhd Annual Report 2019

WWW . F N . C O M . M Y 128 F R A S E R & N E A V E H O L D I N G S B H D SUSTAINABILITY STATEMENT Eco-efficiency refers to the act of maximising benefits and minimising ecological costs. As part of our materiality assessment, we identify four main issues in relation to our eco-efficiency efforts: • Water Stewardship: Water is a fundamental element of our products, and our business is dependent on a reliable supply of water. Therefore, water stewardship at F&NHB and its associated risks are regularly monitored as part of our enterprise risk management. We have a range of water assessment and action policies which are applied across our facilities Our group-wide integrated approach includes efficiency measures; the safe return of waste water from our operations; and mitigating risk in supply. • Effluents & Waste: The food & beverage manufacturing process involves the generation of both liquid (effluent) and solid wastes. We strive to reduce impacts from our operations, and this means complying with and going beyond relevant regulations. F&NHB applies strict standards over the quality of our effluent discharges and continuously explores how ‘waste’ from our operations can be minimised and put to alternative uses. Our dairy manufacturing plants in Thailand and Malaysia are leading the way in our commitment towards achieving zero effluents and solid waste. • Packaging: We strive to ensure our packaging protects the integrity of the contents and fulfils the visual and functional expectations of our consumers. There is increasing stakeholder awareness of the importance of environmental-friendly packaging, especially in relation to plastics. We reduced our PET resin use in packaging materials for some of our products (including 100PLUS ACTIVE and F&N SEASONS and OYOSHI) by 208 metric tonnes this year. There is much scope for innovation in packaging, which we have been exploring over the years. • Energy & Climate Change: Climate change is a defining global challenge of the 21 st century, and F&NHB is committed to reduce our energy consumption and GHG emissions intensity. Our energy and climate change related activities are broken down into five priority areas (energy efficiency in our operations; renewable energy sourcing and generation; reducing carbon in our value chain; route planning; and operations’ exposure to climate change risks). We have a range of initiatives to reduce our impacts and help our business partners to reduce impacts. 4. ECO-EFFICIENCY As a market-leading food & beverage company, we constantly work with our business partners, suppliers and vendors to deliver mutually sustainable solutions which create long lasting value. We have a systematic screening process for all potential new suppliers using environmental (such as reducing waste, pollution and water resources) and social criteria (including human rights and labour practices). 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. Since 2013, we have been collaborating with local Thailand-based farmers in cooperatives which supply F&NHB with milk. We continue to introduce new technologies and equipment (for example, milk machine testers and automatic jet cleaning milking machines) to help them increase productivity, improve milk quality, and reduce wastes as part of a circular economy approach. Working closely with the cooperatives, we also organised seminars and produced quarterly educational newsletters for the farmers. 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 on the Halal Sourcing Partnership Programme. Through this collaboration, F&NHB shared Halal industry best practices whilst providing technical advice and knowledge transfer to small and medium enterprises. 5. RESPONSIBLE SUPPLY CHAIN Almost 24,000 kg of F&B packaging related recyclables were collected by employees in Malaysia via F&N Go Green++ Programme solid waste ratio by 34.1% Reduced reduction 10% in our packaging ratio compared to last year