Packaging

Packaging is one area in which we could make a meaningful difference to our environmental footprint. We therefore seek to maximise the sustainability of our packaging by improving its circularity. Our approach focuses on reducing material use, increasing recycled content, and designing packaging that can be effectively recycled at end-of-life. That is why we have committed to making all our packaging fully recyclable by 2025. Meanwhile, we aim to reduce our reliance on virgin materials by increasing the recycled content in our packaging to at least 25% by 2025.

Guaranteeing that our packaging performs as intended, while remaining aesthetically appealing and safe for our consumers, is an industrial norm. Beyond compliance, we view sustainable packaging as a driver of innovation and long-term value creation. Our strategies include allocating R&D resources to sustainable packaging innovations and working closely with our stakeholders across the value chain to identify and implement more sustainable packaging solutions.

Reducing the amount of materials used in our packaging

F&N has made a Group-wide commitment to reduce the weight of our packaging materials. In other words, we are decreasing the volume of packaging materials used relative to the product’s size. Through lightweighting initiatives and design optimisation, we aim to minimise material intensity without compromising product integrity. Wherever possible, we actively reduce the use of materials that are less environmentally friendly – for example, optimising labels and rationalising packaging components, or transitioning from less sustainable formats to PET and laminated paper packaging where these offer better recyclability and lower environmental impact.

Increasing the usage of sustainable packaging materials

We are actively working to incorporate a higher percentage of recycled content into our packaging materials without compromising food safety and quality. In Thailand, we have successfully implemented the use of 100% recycled paper for corrugated cartons in our local products, and we are progressively increasing the proportion of recycled materials in our tinplate and plastic bottle packaging.

Our environmentally conscious packaging for F&N ICE MOUNTAIN Drinking Water and BORNEO SPRINGS Natural Mineral Water features FSC-certified paper packaging, which is fully recyclable, and is complemented by a bio-based bottle cap made from sugar cane. Looking ahead, we plan to roll out more products with sustainable packaging solutions, including the introduction of Recycled PET (rPET) in the near future. In addition, we are exploring new supplier and partner relationships to enhance our sourcing initiatives for renewable and bio-based packaging materials.

Designing packaging to be recyclable

We are enhancing the recyclability of both primary and secondary packaging across our product lines. This effort involves addressing challenging packaging components, such as labels and multi-material structures.

Under a new Packaging Sustainability Policy, our Thai operations have committed to prioritising green packaging. This means we consider the environmental impact of our packaging – whether aluminium cans, plastic or paper – from the design and development stage through to post-consumption disposal. This is supported by a Packaging Intensity Ratio Roadmap that is closely monitored to drive continuous improvement.

Encouraging responsible post-consumption behaviour and circularity

In both Malaysia and Thailand, we encourage responsible post-consumption behaviour through school recycling programmes. Organised since 2007, the nationwide programme in Malaysia saw participation by over 1,700 schools in 2024. More importantly, the programme has to date prevented approximately 5 million kg of recyclable material from being disposed of in landfills.

Further underlining our commitment to post-consumption management, F&NHB has become a founding member of the Malaysian Recycling Alliance (MAREA), a voluntary Extended Producer Responsibility (EPR) organisation that focuses on significantly improving the collection and recycling of post-consumer packaging through a multi-stakeholder approach.

Through MAREA, F&NHB collaborates with the Malaysian Government and a broad range of stakeholders, including consumers, waste collectors, recyclers and industry players, to advance the shared goal of a greener Malaysia through circular economy solutions. MAREA is currently one of the stakeholder groups actively contributing to the development of the Malaysia Plastic Sustainability Roadmap led by the Ministry of Environment.

To date, MAREA has piloted seven recyclable collection projects in partnership with local councils in Ampang Jaya, Kuala Selangor, Kuala Lumpur and Kuching, as well as recyclers, to promote waste separation at source and facilitate recycling collection. These initiatives also support the gradual phasing out of problematic single-use plastic packaging, in line with national policy direction.

Internally, we also promote sustainable consumption practices through our “Go Green” campaign. Beginning July 2025, this initiative will phase out single-use food packaging at our cafeterias across operations, encouraging the use of reusable containers and more sustainable food service solutions. This programme reinforces our commitment to reducing plastic waste at source and embedding circular economy principles within our own workplaces.