Fraser & Neave Holdings Bhd Annual Report 2021

7. VALUE CHAIN IMPACTS We recognise our operations leave impacts on the environment – through the packaging we use and interaction of the Food & Beverage sector with biodiversity. As such, we are committed to adopting circularity in our packaging and sourcing certified ingredients that minimises the negative impacts on our ecosystem. F&NHB is one of the ten founding members of the Malaysian Recycling Alliance (MAREA) – a voluntary, industry-led initiative that drives circular economy adoption through extended producer responsibility 97% of packaging is recyclable PACKAGING With the increasing awareness of the environmental impacts of single- use plastics, consumers and stakeholders are actively demanding companies to take action and adopt sustainable solutions. Governments around the world are introducing environmental policies to encourage companies to change how their products are produced. Acting on this change could allow F&N to reduce our resource intensity in packaging. Our focus is on designing for the environment – striving to leave a minimum impact on the environment. Incorporating circular economy principles in our packaging, we are working towards using recycled materials in our packaging and ensuring all our packaging is recyclable by 2025. BIODIVERSITY Our world is experiencing biodiversity loss and ecosystem degradation at an unprecedented pace. The F&N business is dependent on ingredients and materials such as palm oil, sugar and paper, and the natural environment may in turn be impacted by the F&N business, especially upstream of the supply chain. As such, we recognise the importance of sustainable sourcing and our role in ensuring healthy natural ecosystems together with our suppliers. Over 91% solid waste reused, recycled or recovered 100% industrial sludge 1,247 MT converted to organic fertiliser and distributed to local farmers 22% recycled content in beverage and dairy packaging Sustainability at F&N 157 Fraser & Neave Holdings Bhd ! Annual Report 2021