Fraser & Neave Holdings Bhd Annual Report 2020

020 FRASER & NEAVE HOLDINGS BHD Chairman's Message (Cont’d.) As always, our encouraging performance has been the result of the hard work and dedication of our employees, who have carried out their functions to the best of their ability despite trying conditions. Many among them also went the extra mile in supporting our programmes to contribute to front liners and the community. It has been incredibly heart-warming to see their response to the community in a time of need. The Board also is gratified by Management’s efforts to safeguard our people’s well- being. In times like these, it is paramount that we keepmorale high and ensure that our people have peace of mind. In addition to ensuring that standard operating procedures (SOPs) were adhered to in our workplaces, all employees and contract workers in our production lines and warehouses who had to work during the MCO received a special weekly allowance. Employees also received early pay-out of contractual bonuses and deferred repayment of motorcycle loans. At the same time, we set up a dedicated 24-hour employee careline to assist with work-related queries or issues that may impact their health and emotional well-being. An employee recognition gesture that has become our hallmark is the F&NHB Chairman’s Award. Since 2003, F&NHB has been presenting the Chairman’s Award to children of employees to motivate them to excel. This year, we awarded a total of RM228,225 to 99 children who attained excellent academic and co-curricular achievements. EXEMPLARY ESG PERFORMANCE Value creation for our stakeholders is one aspect of the Environmental, Social and Governance (ESG) considerations that underpin our sustainability. We recognise the impact organisations can have on the well-being of societies and are benchmarking our sustainability performance against the United Nations’ Sustainability Development Goals (SDGs). Other than to live our Global Values, which reinforce our social contributions, we continue to undertake programmes that drive social progress by strengthening vulnerable communities and promoting a healthy nation. In Thailand, F&N joined hands with our suppliers to tackle the problem of water shortage during the dry season in Chaiyaphum Province. As a result of the seven-month programme, 24 milk farms and numerous households can now enjoy consistent and sufficient supply of clean water. In the belief that an active lifestyle does not stop with the pandemic, we encouraged Malaysians to maintain an active lifestyle at home with live #StayFitwith100PLUS online workouts. Environmentally, we are investing in renewable solar energy to play our part in climate change mitigation. Following the successful installation of Solar Photovoltaic system at Rojana, Thailand plant in April this year, we will be committing RM30 million into implementing a renewable energy programme in Malaysia in 2021. We also believe in the importance of more effective waste management and have become a founding member of a coalition of manufacturers that seeks to promote a more sustainable future through the recycling of post-consumption packaging waste. Meanwhile, we continue to nurture a generation of young eco-warriors through our school recycling programme. Even amidst the fight with COVID-19, we owe it to the future generation to continue the recycling educational programme. Buntings and signages were sent to 430 schools across Malaysia featuring our recycling programme hero R-Boy, a familiar figure among school children. In terms of governance, the Board continuously looks for ways to enhance our framework of integrity. In August 2019, we had reviewed the F&N Code of Business Ethics and Conduct. This led to the establishment of three new policies to reinforce an ethical corporate culture, namely the F&N Anti-Bribery and Anti- Corruption Policy, a Code of Business Practices for Third Parties, and the F&N Supplier Code of Practice. The latter ensures that all our suppliers, too, abide by the principles of respect and dignity in their treatment of employees. Additionally, we strengthened our Board diversity by bringing on Board Ms Tan Fong Sang as a Non-Independent Non-Executive Director. We now have 27.3 per cent women representation (up from 18.2 per cent previously). Ms Tan also takes on the role of chairing our Sustainability & Risk Management Committee from Mr Lee Kong Yip, who retired on 30 September 2020. Going forward, we will continue to work towards meeting the recommendation as stipulated in the Malaysian Code on Corporate Governance 2017 to have at least 30 per cent women representation on the Board.