Fraser & Neave Holdings Bhd Sustainability Report 2020

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 non-financial risks include cyber risks, ensuring skills for digital transformation and 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. Read more in our Annual Report under Principal/Key Risks and Mitigation KEY POLICIES F&NHB’s governance system is supported by various policies and frameworks to ensure that relevant controls are established, and our processes are working as intended. F&NHB supports the UN Guiding Principles on Business and Human Rights, International Labour Organisation (ILO) guidelines, Thailand’s Labour Protection Act and Malaysia Employment Act 1955, and have extended these guidelines and legal requirements in our internal policies. The F&N Code of Business Ethics & Conduct, recently revised in August 2019 and reviewed in June 2020, states the principles upheld by F&N related to integrity, respect and excellence. This Code is communicated to our employees by email and is also made available on our intranet. It requires an annual acknowledgement and declaration to be completed by employees to disclose possible conflicts of interest with F&N, and the annual declaration is reviewed with new employees as part of their induction programmes. Any violation of Code can be reported via these mechanisms: 1. Email to [email protected] 2. Email to [email protected] or 3. Any reporting mechanism provided in existing F&NHB’s policies F&NHB has a No Gift Policy and stringent criteria for donations and sponsorships in accordance to the F&N Anti-Bribery and Anti-Corruption Policy (ABC Policy). Whistleblowing of suspected bribery and corruption can be reported by employees or external parties to the Chairman of the Audit Committee. There has been zero report of employees or external parties corruption and bribery in this financial year. F&NHB also has a Code of Business Practices for Third Parties, putting in place an anti-bribery and anti-corruption management system (ABCMS) to consolidate and manage elements, policies, objectives and processes in relation to bribery and corruption risks. 100% of our employees in Malaysia have made the Integrity Pledge and Declaration of Conflict of Interest submissions. F&NHB suppliers are expected to conduct their business in accordance with ethical business standards and applicable laws, following the F&N Supplier Code of Practice. Suppliers are expected to treat their employees equally, with respect and dignity, in accordance with International Labour Organization (ILO) standards and applicable labour laws. Policies including F&N Code of Business Ethics & Conduct and F&N ABC Policy are also communicated through F&N’s internal app, Fraserians Connect and training sessions. reported breaches of the code of conduct 0 report of corruption and bribery 0 Our Sustainability Approach Scan here to read these policies 022 FRASER & NEAVE HOLDINGS BHD