Fraser & Neave Holdings Bhd Sustainability Report 2021

Sustainable Sourcing F&NHB source for raw materials that are certified with eco-credentials, including Roundtable for Sustainable Palm Oil (RSPO), VIVE, BONSUCRO and Forest Stewardship Council (FSC) to ensure that they are produced in an environmentally and socially responsible manner. • Sustainable Palm Oil Palm oil is a widely used raw material in food and beverage products, and is a key raw material in the our supply chain. It has potentially major indirect impacts as irresponsible palm oil cultivation has caused – and continues to cause significant environment and social damage. We understand that our actions and business practices pertaining to the support of sustainable palm oil production is important and, having become a member of RSPO in August 2017, we reiterate our support for the use of Certified Sustainable Palm Oil (CSPO) in products. Beginning 2021, we have started to purchase 20% RSPO’s physical certified palm oil for our palm oil usage, and balance 80% RSPO credits. Now and moving forward, with the RSPO Roadmaps in place, we will increase the proportion of the mass balance approach in the upcoming years. Our commitment is to purchase 100% RSPO’s physical certified palm oil for our palm oil usage by 2025. In the 2021 WWF Palm Oil Buyers Scorecard, F&N was in the top 25% of all responded companies. F&N was named the Top Asian Company, and ranked 46 th out of 227 global companies. For more information on F&N Group’s ranking in the palm oil buyers score card here. • Sustainable Sugar Sugar is another critical raw material for F&N. We have started to procure sustainable sugar under the guidance of the VIVE sugar certification programme. 4 This year, we have procured 24,000 metric tonnes of VIVE certified sustainable sugar. This is the second year since we first started purchasing VIVE-certified sustainable sugar. • Sustainable Paper Sustainable sourcing of paper as a material in the supply chain is key to ensuring that harmful environmental and social impacts are mitigated or reduced to a minimum. 100% of our paper products used in carton packaging carry the FSC certification. Managing the Supply Chain during COVID-19 Amidst the on-going pandemic, F&NHB focused on adapting to the evolving situation and has continued the initiatives introduced in the previous year to ensure supply chain resilience during COVID-19. To avoid disruptions, we worked closely with our trade partners and suppliers to ensure adequate supply and availability of core products to our customers and community. We also constantly engaged with our suppliers and trade partners to strengthen conventional business continuity planning. • Weekly supply chain bulletins to keep all suppliers informed of the changing situation and respective actions taken. • Work closely with key retailers to ensure core products like canned milk, UHT and drinking water are su+ciently stocked in their warehouses for long-term consumption. • Work together with suppliers to create bubble seals and have ATK swabs before entering our facility. • Supplier Productivity Enhancement Programme has been implemented to help our suppliers manage supply shocks and disruptions. • Close collaboration with suppliers to maintain a three-month stock minimum to mitigate any impact to inventory levels. INITIATIVES Malaysia Thailand 060 R E S P O N S I B L E S U P P L Y C H A I N