Fraser & Neave Holdings Bhd Annual Report 2021

53% of products are in compliance with national nutritional guidelines 61% reduction of sugar per ml of our total beverages (2004-2021) >90% of the Ready-To-Drink (RTD) beverages sold are considered as healthier options with less sugar 69 products certified with Healthier Choice Symbol/Logo 100% of our operations underwent human rights risk assessments bottles of 100PLUS distributed at major vaccination centres to promote hydration Community investment for the year products distributed to various beneficiaries nationwide under Covid-relief initiatives >RM2,500,000 >2,000,000 >1,000,000 3. RESPONSIBLE SUPPLY CHAIN As a Food and Beverage business, F&NHB is dependent on supply of raw materials including sugar, palm oil, aluminium and resin for production operations. Sustainability risks can cause massive disruptions to the global supply chain, like how COVID-19 has. A resilient and sustainable supply chain equips us with the ability to manage the cost of raw materials and ensure sustainable sourcing. We work 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 our supply chain. We manage our existing and new suppliers through a systemic screening process that includes environmental and social criteria. We conduct a vendor performance evaluation for all critical suppliers, including sustainability. Non- compliant or underperforming suppliers must demonstrate commitment to taking necessary corrective actions within a predefined period, or risk having contracts terminated. 4. CREATE VALUE FOR SOCIETY Our successes over the last 138 years were made possible through the commitment of our people, the contributions of our consumers, and the support of communities in which we operate. As such we build collaborative relationships with these stakeholders by o!ering a strong portfolio of good quality and nutritious products for consumers, providing vulnerable groups support, empowering our employees and respecting the human rights of all stakeholders. We aim to o!er products that satisfy our consumers and enhance their health and well-being. The F&N Nutrition Charter outlines our commitment to developing products that are healthy for consumers and guides us through our product development. Our health and nutrition ambition focuses on: reducing sugar level, developing products without partially hydrogenated oils (trans fatty acids), fortifying our products with micronutrients, catering to consumers with diverse dietary needs and preferences, and promoting health and well-being through fitness programmes. F&NHB believes that social inclusion allows for businesses and societies to flourish together. To serve and create greater social equity, we have undertaken long and short-term programmes under five themes: Supporting COVID-19 Relief, Strengthening Vulnerable Groups, Promoting Environmental Consciousness, Spreading Festive Cheer, and Promoting Active Lifestyles. of our active key suppliers have accepted F&N Group’s 13% of product innovation for commercialised F&N products 66% Begin to use physical certified palm oil this Financial Year 20% physical RSPO palm oil and balance 80% RSPO credits Supplier Code of Practice 154 SUSTAINABI L I TY STATEMENT