Fraser & Neave Holdings Bhd Sustainability Report 2021

GRI Index: GRI 204-1, GRI 308-1, GRI 414-1 At F&N, we believe that a strong foundation in supply chains is key to ensuring success in today’s world, where volatility and uncertainty is the norm. As a Food and Beverage business, we are dependent on supply of raw materials including sugar, palm oil, aluminium and resin for production operations. The supply of these raw materials may be irregular due to larger global and local trends that may a*ect supply and demand. The COVID-19 pandemic has caused massive disruptions to global supply chain. Other factors F&N identified as key supply chain risk factors also include changing weather and climate conditions, regulatory changes imposed by the Government and human rights risks, including poor working conditions, forced and child labour. Having a resilient and sustainable supply chain means ability to manage the cost of raw materials and ensure sustainable sourcing, which have direct impacts on F&N operations and the bottom line of the business. SDG 9: Industry, Innovation & Infrastructure SDG 8: Decent Work & Economic Growth SDG 15: Life on Land SDG 17: Partnerships for the Goals SDG 2: Zero Hunger SDG 12: Responsible Consumption & Production As a market-leading F&B company, we constantly work with the counterparts of our supply chain, including business partners, suppliers and vendors, to understand their needs, and deliver mutually sustainable solutions that create long lasting value. We encourage others to improve sustainability performance throughout their supply chain and lead by example. The cornerstones to our Supply Chain Stewardship are as follows: • Sustainable Sourcing • Sustainable Supply Chain • Supplier Management APPROACH TARGET • 100% active key supplier accept and comply with F&N’s Supplier Code of Business Practice Progress As of 2021, 66% of our active key suppliers have accepted and complied with our Code of Business Practice • At F&NHB, we have also set an additional commitment to assess all critical suppliers to ensure compliance with Code of Business Practice for Third Parties by 2025 OUR 2025 COMMITMENTS Identify Risks Screening and Critical Suppliers Identification Manage Risks Supplier Capacity Building and Partnerships Monitor Risks Monitoring, Auditing and Corrective Action Planning Responsible Supply Chain 059 Fraser & Neave Holdings Bhd ! Sustainability Report 2021 SUPPLY CHAIN STEWARDSHIP