Fraser & Neave Holdings Bhd Annual Report 2020

6 ENVIRONMENTAL STEWARDSHIP 074 FRASER & NEAVE HOLDINGS BHD RISKS • Extreme weather events due to climate change expose our assets and operations to costly damages. • Risk of losing license to operate due to non-compliance to applicable environmental legislations and regulations. • Failure tomeet stakeholders’ expectation inmanaging the impact of our operations to our planet, particularly relating to climate change, packaging and waste. OPPORTUNITIES • Reducing water, energy and material consumption also translate to lower cost. • Good environmental stewardship uplifts the organisation’s reputation and consumer’s preference. • Inculcate sustainable practices and values in employees and communities through the adoption and engagement of the 3Rs: Reduce, Reuse and Recycle. OUR RESPONSE We implement environmentally sustainable business practices and guided by the principles in our Environmental, Safety & Health Policy. i. Water Stewardship We seek to use water efficiently across the value chain and employ water resources risk management to ensure sufficient water for our production purposes. ii. Effluents and Waste We comply with international and national standards in effluents and waste management. These include actions to minimise waste in the production process and post consumption. iii. Energy and Climate Change We curb our contribution to climate change by managing our energy consumption and GHG emissions in our manufacturing processes and supply chain. This includes creating greater energy efficiencies in our operations and using as much renewable energy as possible. Refer to the ‘Sustainability Statement’ section on pages 133 to 139 in this AR, or read more in the F&NHB Sustainability Report 2020. WHY IT IS IMPORTANT TO US Water management practices are fundamental for business growth, especially in beverage manufacturing. As a large producer, it is also critical to ensure that our operations do not negatively impact the environment or the communities. STRATEGIC REPORT: Material Matters (Cont’d.)