Governance and Ethics
- Better BusinessBetter Business
- Economic PerformanceEconomic Performance
- Governance and EthicsGovernance and Ethics
- InnovationInnovation
- Supply Chain StewardshipSupply Chain Stewardship
- Product StewardshipProduct Stewardship
- Public PolicyPublic Policy
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.
At F&NHB, we focus on three key areas in overall risk management framework:
1 Business Operational Risks
2 Integrating material sustainability issues
3 Emerging risks which may impact us in mid or even long-term basis
We have integrated the material sustainability issues into our overall risk management framework by identifying specific risks, opportunities, and key priorities for the financial year to drive our strategic decisions. Specific sustainability risks are managed as part of the Enterprise Risk Management. This helps us to develop better products and create more meaningful value for our stakeholders.
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.
| Emerging Risks | Climate Change Risk | Risk from disruptive digital technology and disruption |
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| Description | The Malaysian government’s emphasis on the energy transition aligns with global efforts to combat climate change and underscores Malaysia’s commitment to a sustainable and prosperous future. For instance, Malaysia had revised the Nationally Determined Contribution (NDC) to reduce the intensity of greenhouse gas (GHG) emissions by 45 per cent by 2030 compared with 2005 levels.
The globalisation of the world’s economy is vulnerable and prone to the impacts of climate change such as fires, floods, heat waves, windstorms, cold fronts etc which may result in loss of human life, damage to ecosystems, destruction of property and/or financial loss at a global scale. The volatility of global weather disruption may influence the economic activities. As such, any significant increase in prices of commodities and materials could materially affect the cost and profitability of our products. It is therefore a new risk that may occur in the future and affect F&N’s business operations. |
Like many industries, food and beverage industry is prone to be affected by the development and employment of technologies and innovations to increase production efficiency, decrease the dependence on human labour, save costs for the business in the long run, and respond to the ever-changing demand of consumers. Hence, there is a risk which the company could not adapt itself to keep pace with technological advancement in terms of products, business model, and route-to-market resulting in significant impact on the Company in the long run. |
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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.