Fraser & Neave Holdings Bhd Annual Report 2020

138 FRASER & NEAVE HOLDINGS BHD Sustainability Statement (Cont’d.) 4. ECO-EFFICIENCY Eco-efficiency refers to the act of maximising benefits and minimising ecological costs. As part of our materiality assessment, we identified four main issues in relation to our eco-efficiency efforts: WATER STEWARDSHIP A lack of effective water management can have serious implications as F&N’s products and business is dependent on a reliable supply of water. While none of our sites are in high water-stress areas, many regions in both Thailand and Malaysia have faced floods in recent years, and the effects of climate change are expected to intensify water stress in the future. Hence, water stewardship and its associated risks are regularly monitored as part of F&NHB enterprise risk management (ERM) and water assessment and action policies 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 the supply. EFFLUENTS AND WASTE Waste can be a source of value for our supply chain or for another organisation’s supply chain. Being able to effectively manage our waste enhances F&N’s ability to conserve natural resources and improve efficiency. We continue to improve on our solid waste management by identifying key categories and key waste streams so that we can recycle and reduce our waste generation. We strive to reduce the impacts from our operations, and this means complying with, and going beyond, relevant regulations. 5. RESPONSIBLE SUPPLY CHAIN As a market-leading F&B company, we constantly work with our business partners, suppliers and vendors to understand their needs, and deliver mutually sustainable solutions that create long lasting value. We also lead by example, encouraging others to improve sustainability performance throughout their supply chain. F&NHB is committed to Sustainable Sourcing and supports the production of sustainable palm oil and sugar. We recognise that sustainability in our own operations is futile unless we also work with these partners to ensure best practice across our supply chain. Hence, we look to understand our suppliers’ needs and establish mutually beneficial partnerships for circular economy solutions. PACKAGING There is increasing stakeholder awareness of the importance of environmental- friendly packaging, especially in relation to plastics. Increasing the sustainability of our packaging is important to support our national regulators’ and government’s effort to phase out single-use plastics and go zero waste, as well as reduce the extraction of raw resources and waste generation. We strive to ensure our packaging protects the integrity of the contents and fulfils the visual and functional expectations of our consumers. We have been improving our packaging materials by progressively reducing material usage, increasing the use of sustainable materials and increasing the recyclability of our packaging. ENERGY AND CLIMATE CHANGE Climate change is a defining global challenge of the 21 st century, presenting risks to the global economy. For F&N, climate change presents risks including price fluctuations on raw material commodities, and access to water resources. Managing this topic presents the opportunity to turn challenges and risks into climate-related opportunities for F&N, through cost savings, energy savings, alignment with customer ambitions and support and contribution to the development of government policies. The Group works closely with our suppliers and conducts regular audits to ensure standards and practices for food safety and the environment are maintained throughout the value chain. F&NHB supports the UN Guiding Principles on Business and Human Rights and we are a member of the Supplier Ethical Data Exchange. Our Procurement Policy covers our full commitment to standard principles of ethical business practices throughout the supply chain. This year, we have also launched a new Supplier Code of Practice which covers all environmental and social impacts, including business ethics, environmental management, human rights and occupational health and safety. Kota Kinabalu and Pulau Indah plant in Malaysia achieved zero waste to landfill, with 100% of waste recycled 13% in Thailand Reduce Reduction Reduce Solar panel rooftop at our Rojana plant gives us savings of THB6,000,000 solid waste intensity ratio by 62% from 2017, successfully exceeding the set target of 5% from 2017 1% Reduce energy intensity ratio by water intensity ratio by of industrial sludge from our wastewater treatment plants converted into fertiliser Over 1,250 MT