Fraser & Neave Holdings Bhd Sustainability Report 2021

Sustainable Supply Chain F&N 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. Our SCOP and COBP includes the following requirements: business ethics, whistle blowing, communications, competitors, environmental management, human rights and occupational health and safety. Suppliers are expected to treat their employees equally, with respect and dignity, in accordance with International Labour Organisation (ILO) standards and applicable labour laws under the SCOP. This covers child and compulsory labour, equality, human capital development, layo* practices, wages and benefits and working hours. Supplier Management • Identify Risks – Screening and Critical Suppliers Identification At F&N, we have a systematic screening process for all new suppliers that includes environmental and social criteria. These criteria reflect the commitments towards the environment (such as reducing waste, pollution and water usage) and society (including human rights and labour practices). The environmental performance of their raw material and primary packaging suppliers are also assessed annually to verify if they have: 4 VIVE is a voluntary, continuous improvement sustainability programme for ingredient supply chains, covering all operations and activities for producers through to end users that have a bearing on sustainability. During the pre-qualification screening of suppliers, we assess our suppliers based on a wide range of criteria. Apart from delivery capacity and technical capabilities, we also assess potential suppliers based on their ESG company policies and certifications. This includes policies for business continuity plan, food safety, responsible sourcing, bribery & corruption, carbon management and child labour and certifications for management systems such as quality, occupational health and safety, environment and food safety. Implemented an environment policy Undertaken audits to monitor environment performance and compliance Maintain ISO14001 compliant EMS Critical suppliers are active direct (tier-1) material suppliers with high sales value greater than RM1 million per annum and/or irreplaceable suppliers. Direct material suppliers are suppliers who supply packaging materials, raw ingredients and auxiliary materials. Irreplaceable suppliers include single-source suppliers. On annual basis, we will conduct a vendor performance evaluation for all critical suppliers, including sustainability. Non-compliant or underperforming suppliers must demonstrate that they are committed to taking necessary corrective actions within a predefined period, or risk having contracts terminated. • Managing Risks – Supplier Capacity Building and Partnerships In the past year, we have engaged with over 2,900 global and local suppliers across our supply chain, including manufacturers, wholesalers, retailers, importers/merchants, contractors and professional services providers. Responsible Supply Chain 061 Fraser & Neave Holdings Bhd ! Sustainability Report 2021