Fraser & Neave Holdings Bhd Annual Report 2020

068 FRASER & NEAVE HOLDINGS BHD Consumer Health and Safety Water Stewardship Economic Performance Energy and Climate Change Creating Value for Society Product and Service Labelling Packaging Occupational Health and Safety Effluents and Waste Innovation Sustainable Sourcing Market Presence High High Importance to business Importance to stakeholders Moderate Talent Management The Group selects high priority material issues to establish medium-term performance sustainability goals to be achieved by 2020. Here are the high priority and key material issues that will be detailed in the following pages: 1 Innovation 2 Sustainable Sourcing 3 Consumer Health & Safety 4 Occupational Health & Safety 5 Talent Management 6 Environmental Stewardship 7. Creating Value for Society STEP 1: IDENTIFICATION We first conducted a comparative analysis of sustainability issues identified by global initiatives (such as the United Nation Sustainable Development Goals) and best practices of peer companies in the industry. These issues were then discussed within the Group Sustainability Development Committee (SDC) to identify the ones of most relevance of F&N. Our employees were surveyed in order to make sure that our identification process was accurate and a list of key issues was finalised. STEP 2: PRIORITISATION To prioritise our sustainability issues, we engaged department heads, the C-suite and board directors in a materiality workshop. The workshop involved an in-depth discussion of each identified sustainability issue, including the possibility of impacts to our business and stakeholders. Each issue was then prioritised on a scale of ‘moderate’ to ‘high’. STEP 3: VALIDATION After the preliminary materiality matrix was developed, we proceeded to validate the matrix through engagements with the F&NHB Sustainability Management Committee and the Board. OUR MATERIAL ISSUES We undertook our first materiality assessment in 2017 to evaluate our most important sustainability issues. This assessment was based on three steps: Identification, Prioritisation and Validation. STRATEGIC REPORT: Material Matters FY2020 MATERIALITY MATRIX Following the initial materiality exercise in 2017, we have continued to review the materiality issues every year. Our most significant material topic ‘Consumer Health and Safety’ is extremely relevant this year amidst the COVID-19 pandemic as communities are becoming more discerning of their health and hygiene. ‘Economic Performance’ is vital as we continue to ensure adequate supply to the market as well as the contribution to our frontliners and people in need whilst maintaining a resilient financial performance. The ‘Occupational Health and Safety’ issue is also increasingly important in light of the pandemic.