Fraser & Neave Holdings Bhd Annual Report 2021

1. RESPONSIBLE BUSINESS PRACTICE Responsible business practice is the foundation of F&N’s business and is critical in maintaining trust with stakeholders. We manage business practices through transparent communication of robust governance policies and standards of ethical behaviour. These practices are evident in our internal risk management systems and financial performance. Sustainability risks and opportunities for F&NHB are governed by Sustainability & Risk Management Committee – providing oversight and approving strategic sustainability initiatives and policies. Our sustainability metrics are aligned with F&N Group’s targets and with all executives’ annual variable compensation (including senior management) for the following areas: Energy Management, Water Stewardship, Employee Safety, Health & Well-being, and Human Capital Development. Sustainability metrics are weighted at 15% of the annual variable compensation plan As a leading manufacturer of Halal-compliant products, ensuring Halal compliance and maintaining Halal integrity is important throughout the supply chain. Strict adherence and implementation of Halal standards are needed to ensure the needs of our local and global Muslim consumers are met. To further propel the Halal ecosystem in Malaysia, we facilitate positive collaborative engagement with Halal authorities such as JAKIM, JAIS and HDC. F&NHB maintained a resilient economic performance in the face of external shocks, to continue delivering value for all stakeholders. F&N economic performance depends upon all six capitals (financial, manufactured, intellectual, human, social & relationship and natural). F&N’s ability to create financial value is exhibited in our Value Creation Business Model. 2. RESPONSIBLE PRODUCT STEWARDSHIP “Pure Enjoyment, Pure Goodness” to F&NHB means producing, marketing and selling our brands responsibly and enabling consumers to make informed purchasing choices. We are committed to delivering products of the highest quality, and continuously find ways to innovate to meet the changing needs and wants of our customers. From boots to boardroom, we promote a culture for high product quality and safety standards. Our plants are certified with international standards – FSSC scheme 22000, ISO 22000 and HACCP Food Safety management systems, and all stages of our production processes are subjected to rigorous quality control procedures. HALAL STANDARD 100% of plants and production processes are certified with 13 new products introduced of non-compliance with laws and regulations in the social and economic area resulting in a fine, penalty or warning of non-compliance with environmental laws and regulations resulting in a fine, penalty or warning ZERO INCIDENT ZERO INCIDENT We ensure to communicate our high product quality proper through the use of labels and appropriate advertising activities. We go beyond mandatory labelling requirements because we believe that information provided to our customers should be comprehensive to provide clarity and transparency. We include fundamental nutrition information and packaging labels such as the Forest Stewardship Council™ logo on paper carton packaging. In Malaysia, we are a signatory to the ‘Responsible Advertising to Children’ initiative and have pledged to restrict marketing to children under 12 years of age. To serve our customers better, F&NHB invests in product and process innovation to increase our product range, and improve operational e&ciency and productivity. We encourage employee-driven innovative manufacturing processes that increase productivity and improve environmental performance. All employees in Malaysia undergo mandatory Halal awareness training THB26.3 million annual cost avoidance through employee-driven innovation projects in 2021 Sustainability at F&N 153 Fraser & Neave Holdings Bhd ! Annual Report 2021