Fraser & Neave Holdings Bhd Sustainability Report 2019

PACKAGING OUR APPROACH 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. In Malaysia, the government recently released a ‘Roadmap Towards Zero Single-Use Plastics 2018-2030’ setting out their vision to phase out single-use plastics over the next decade. F&NHB is committed to supporting these efforts and will be re- assessing our approach over the next year, as well as establishing relevant targets when we set new sustainability goals for 2025. There is much scope for innovation in packaging, which we have been exploring over the years (more details are included in the ‘Innovation’ chapter of this report). This has helped us reduce the volume of packaging materials used as a percentage of product. Our overall packaging ratio has dropped by 10% compared to last year. Circular economy principles guide our approach and we are committed to reduce waste by increasing shelf life and providing appropriate portion sizes, as well as increasing the recyclability of the primary and secondary packaging used in our products and sourcing more renewable packaging materials. Currently, more than 90% of our beverages’ packaging are made of recyclable materials. 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. On top of that, the products have a longer shelf- life, which led to less waste disposal. We are also active in campaigns to encourage recycling; more information is included in the ‘Creating Value for Society’ chapter (pages 053-065) of this report. Some of our materials’ light-weighting initiatives: In Thailand, and as described in the earlier ‘Innovation’ chapter, this year, we also implemented a packaging reduction initiative for cartons of 2kg pouch sweetened beverage creamer. Through this initiative, the weight of paper carton has reduced by 90g, with savings of 150 metric tonnes of cartons and 15 million baht in cost savings per year. Another initiative implemented this year was to increase the size and weight of shrink film roll and modify the support of auto pack to fit the larger roll. With this, the usage of shrink film has reduced by 21.8 metric tonnes per year. Note: 1. Packaging intensity ratio is calculated based on the amount of packaging materials used (in metric tonne, MT) per metric tonne of product. P A C K A G I N G R A T I O ( MT o f p a c k a g i n g ma t e r i a l / MT o f p r o d u c t i o n v o l ume ) FY2019 FY2018 FY2017 Malaysia Thailand 0.08 0.14 0.08 0.14 0.13 0.07 Reduction of Materials Usage (in MT) PET bottle 208 MT per year Aluminium can 146 MT per year Tin plate 130 MT per year Shrink film 21.8 MT per year Light Weighting of Packaging Materials PET Bottle Aluminium Can Tin Plate 7% 11% 10% O U R P E R F O R M A N C E H I G H L I G H T S In Malaysia, over 58,000 metric tonnes of packaging materials were used during the year, and in Thailand, it was over 44,000 metric tonnes. 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 076 ECO-EFFICIENCY