Fraser & Neave Holdings Bhd Annual Report 2020

063 ANNUAL REPORT 2020 03 md&a ENVIRONMENTAL SUSTAINABILITY Among the ongoing global concern regarding the sustainability of our natural environment are climate change and waste management. Experts predict dire consequences should the Earth’s temperature increase by more than 2°C from pre-industrial levels. Improved waste management, meanwhile, is critical due to limitations of landfills as well as the increasing volume of plastic that is choking waterways while also threatening the marine ecosystem. Many governments have committed to varying levels of carbon emissions reduction and making concerted efforts to reduce and eventually eliminate single-use plastics while promoting greener technologies. Meanwhile, consumers themselves actively seek brands that contribute to a greener environment. • We achieved a milestone in 2020 by installing our first solar panel roof, at our plant in Rojana, Thailand. We further committed RM30 million investment into energy conservation which includes the 10MWp solar roof projects at Shah Alam, Pulau Indah and Bentong plants in Malaysia. We aim to replace at least 20 per cent of our total energy requirement in Malaysia with clean energy by 2022. • The Group’s capex investment over the last five years are also aimed at achieving our environmental goals. For example, F&NHB’s new warehouse at Shah Alam will significantly reduce shunting and double handling between our plants and the Automated Storage and Retrieval System (ASRS) will significantly reduced the use of forklifts, thus cutting our fuel usage and greenhouse gas emission. • In terms of waste management, F&N school recycling programme has so far saved more than 4.76 million kilogrammes of recyclables from going into landfill. This year, we have also become a founding member of an industry coalition that seeks to promote the recycling of post-consumption packaging waste in Malaysia. DIGITAL REVOLUTION The last few years have seen a shift in demand from brick and mortar retail to e-commerce, and the pandemic has accelerated this change. Movement restrictions imposed by governments, together with individuals’ own preference to stay away from crowded retail outlets, have led to a significant spike in e-commerce. According to GlobalData’s E-Commerce Analytics, Malaysia’s e-commerce market is expected to grow by 24.7 per cent in 2020 and to exceed RM51 billion by 2024,3 increasing at a compounded annual growth rate of 14.3 per cent between 2020 and 2024. At the same time, there is a greater need for organisations to adopt digital technologies to enable employees to work remotely, as well as to enhance efficiencies. • F&N Life, our flagship online store was scaled up rapidly in March to meet increasing online demand post-MCO. Today, we offer 250 product types via the virtual store. We helped our distributors to set up e-selling platforms and organise e-Ramadan Bazaars to boost sales during the Ramadan period. We are also collaborating with T-mall, one of the biggest e-commerce sites in China and other e-commerce sites in Malaysia to reach out to more online consumers. • In addition, we are leveraging digital tools and our online presence to enhance our consumer/customer engagement. F&N Teh Tarik Ori was successfully launched during the MCO period with a virtual mamak session. Meanwhile, in Thailand, we have a Line group chat through which we engage with some 8,000 hawkers. • In terms of work, we are creating a digital culture in which there will be greater use of AI and big data to create efficiencies in everything we do. The year also saw all employees in Malaysia connected through the ‘Fraserian Connect’ mobile app.