Fraser & Neave Holdings Bhd Sustainability Report 2020

OUR MATERIAL ISSUES We undertook our first materiality assessment in 2017 to evaluate our most important sustainability issues. This assessment was based on three steps: Identification, Prioritisation and Validation. FY2020 MATERIALITY MATRIX Following the initial materiality exercise in 2017, we have continued to review the 15 materiality issues every year. In 2019, we have subsumed a) the ‘Health and Nutrition’ issue under ‘Consumer Health & Safety’ and ‘Creating Value for Society’; and b) the ‘Route Planning’ issue under ‘Energy & Climate Change’ to be aligned with the circular economy approach. Hence, there are now 13 materiality issues for F&NHB as shown in the materiality matrix below. Our most significant material topic ‘Consumer Health and Safety’ is extremely relevant this year amidst the COVID-19 pandemic as communities are becoming more discerning of their health and hygiene. ‘Economic Performance’ is vital as we continue to ensure adequate supply to the market as well as the contribution to our frontliners and people in need whilst maintaining a resilient financial performance. The ‘Occupational Health and Safety’ issue is also increasingly important in light of the pandemic. We first conducted a comparative analysis of sustainability issues identified by global initiatives (such as the United Nation Sustainable Development Goals) and best practices of peer companies in the industry. These issues were then discussed within the Group Sustainability Development Committee (SDC) to identify the ones of most relevance of F&N. Our employees were surveyed in order to make sure that our identification process was accurate and a list of key issues was finalised. To prioritise our sustainability issues, we engaged department heads, the C-suite and board directors in a materiality workshop. The workshop involved an in-depth discussion of each identified sustainability issue, including the possibility of impacts to our business and stakeholders. Each issue was then prioritised on a scale of ‘moderate’ to ‘high’. After the preliminary materiality matrix was developed, we proceeded to validate the matrix through engagements with the F&NHB Sustainability Development Committee and the Board. STEP 1: IDENTIFICATION STEP 2: PRIORITISATION STEP 3: VALIDATION Consumer Health and Safety Water Stewardship Economic Performance Energy and Climate Change Creating Value for Society Product and Service Labelling Packaging Occupational Health and Safety Effluents and Waste Innovation Sustainable Sourcing Market Presence High High Importance to business Importance to stakeholders Moderate Talent Management 025 SUSTAINABILITY REPORT 2020