Governance and Ethics

Sustainability at F&NHB is governed by our Board, which is kept updated on our performance by our Sustainability Management Committee (SMC) that oversees a Sustainability Development Working Team. Our governance framework ensures both that: 1) sustainability policies approved by the Board are implemented on the ground; and that 2) performance on the ground is reported to the Board. At the Board, sustainability is overseen by the Sustainability & Risk management Committee as our sustainability strategies support F&NHB’s risk management.

RISK MANAGEMENT

F&NHB integrates material sustainability topics into our overall Risk Management framework by identifying specific risks, opportunities and key priorities for the financial year to drive our strategic decisions. This helps us to innovate better products and create more meaningful value for our stakeholders. Specific sustainability risks are identified and dealt with as part of the Enterprise Risk Management (ERM) framework. Risk appetite and risk tolerance statements are reviewed by the SRMC and approved by the Board annually. At the end of the financial year, the Board receives assurance from the CEO and Chief Financial Officer that the risk management and internal control system in place for the Group is adequate and effective to address risks which the Group considers relevant and material to its operations through the ERM Validation Report and Comfort Matrix.

Examples of include cyber risks, ensuring skills for digital transformation, business disruption the impacts of climate change on commodity prices. Amidst the evolving technology-resilient business environment, the group has developed a Cybersecurity Framework to guide businesses on managing cybersecurity risks. Regular training and constant updates related to cyber threats are provided to all employees to raise awareness level.

Emerging Risks Commodity shocks Business Disruption from Pandemic
Description F&N Holdings Group is dependent on the supply of raw materials including but not limited to, sugar, aluminium and resin for its production. The supply of these raw materials may be irregular as a result of global and local supply and demand, weather conditions as well as regulatory changes imposed by the Government. A shortage in the supply of raw materials may drive prices up in the short to medium term which would in turn materially affect the cost of the F&N Holdings Group’s products. Accordingly, any interruption in the supply or availability of raw materials and the volatility in raw material prices may impact on the operations and the profitability of the F&N Holdings Group. The F&N Holdings Group’s business operations may be affected by an outbreak of COVID-19 or an outbreak of any other contagious or virulent disease. The outbreak of COVID-19 or other contagious or virulent diseases in Singapore, Malaysia, China or other parts of the world will disrupt global and regional businesses. In addition, several countries in Asia have suffered or are suffering from outbreaks of communicable diseases such as Influenza A and Middle East Respiratory Syndrome (MERS). Such an outbreak of communicable disease may lead to amongst others, supply chain and operations interruptions including interruptions in market activities and cash flow disruption which may have a material adverse effect on the F&N Holdings Group’s operations and financial position. In the face of such situations, the F&N Holdings Group will perform a detailed assessment of its cash flows and operations and will take appropriate and timely actions as required.
Mitigating Actions
  • Commodities and materials price risk is managed through forward purchase of key commodities, active monitoring of commodities price trends, and vigilant sales forecasting and production planning.
  • In addition, we also source from multiple suppliers and origin of commodities/ materials as listed in our approved vendors list to enable us to respond ably in the event of shortage in supply and/or increase in price.
  • We also hedge our purchases using our enlarged and collective purchasing capability.
  • Group Business Continuity Management Framework (BCMF) has been established which sets out the policies and procedures in relation to response, recovery and restoration of business in the event of a crisis or disaster.
  • Business Continuity Plans (BCP) are in place and being tested in accordance with the BCMF.
  • Regular engagement with internal and external stakeholders to balance stakeholders needs.
  • Maintain healthy cashflow positions during crisis.
  • Ensure compliance with SOPs issued by government.
KEY POLICIES

We have in place various policies and guidelines that ensure a high level of integrity across the organisation such as our Anti-Bribery and Anti-Corruption (ABAC) Policy, Code of Business Conduct and Human Rights Policy. These are aligned with the UN Guiding Principles on Business and Human Rights, International Labour Organisation (ILO) guidelines, Thailand’s Labour Protection Act and Malaysia Employment Act 1955.

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reported breaches of the Code of Conduct in the past 4 fiscal years

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report of corruption and bribery in the past 4 fiscal years

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report of discrimination and harassment in the past 4 fiscal years

Read Our Codes and Policies