Fraser & Neave Holdings Bhd Sustainability Report 2021

GRI 204-1 Proportion of spending on local suppliers • F&NHB engages with local suppliers, where possible. About 93% of our suppliers are local to the country of operations, representing almost 78% of our purchase value expenditures . • Over the year, a total of 295 new suppliers were screened using environmental criteria . • Over the year, a total of 295 new suppliers were screened using social criteria . GRI 308-1 New suppliers that were screened using environmental criteria GRI 414-1 New suppliers that were screened using social criteria Note: 1. Local suppliers refer to a group of suppliers who operate their business in the country where F&NHB’s operation is located, which are Malaysia, Brunei, Thailand and Indochina. Percentage of Local Suppliers Percentage of Purchase Value Spent on Local Suppliers Halal Sourcing Partnership Programme – Malaysia Operating in a Muslim majority market, F&NHB facilitates the development of the Halal industry in Malaysia. Apart from ensuring the Halal standards within F&N operations, F&N looks beyond our boundaries and into upstream (suppliers) and downstream (packers) processes. F&NB continues to partner with Halal Development Corporation Berhad (HDC) on the Halal Sourcing Partnership Programme (HSPP), providing technical advice and knowledge transfer to small and medium enterprises (SMEs). This year, there are five vendors identified, of which two have been on-board as our suppliers. The remaining three are in the midst of developing them to become our supplier. • Monitor Risks – Monitoring, Auditing and Corrective Action Planning The Group works 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. All suppliers performances are assessed monthly and audits are done for medium and high risk suppliers 2 times a year based on quality, delivery, service, food safety compliance and certification systems including quality, environmental and occupational health and safety. F&N is looking to revise the evaluation checklist to include environmental, social and governance criteria such as corporate governance and human rights. 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. This year, all 145 critical suppliers were audited on food safety regulations and standards, and none were found to be non-compliant. For food safety, we assess a range of quality assurance and food security criteria to safeguard the health of consumers and the safety of workers in our supply chain. Our criteria for assessing suppliers include the implementation and monitoring of good manufacturing processes, use of protective clothing, food safety management systems, & chemical management. PERFORMANCE 91.8% 76.5% 95.0% 78.6% Responsible Supply Chain 063 Fraser & Neave Holdings Bhd ! Sustainability Report 2021