Fraser & Neave Holdings Bhd Sustainability Report 2020

A circular business model can be defined as the way an organisation creates, delivers and captures value with, and within, closed material loops and chains. F&NHB is committed to working towards a more circular economy by applying the principles of: Prioritising renewable inputs Keeping products and materials in use Recovering by-products and waste. These principles guide our approach to managing materiality topics. More than half of our materiality topics have links to a circular economy: • Innovation: We design new solutions for products and processes which contribute to resource efficiency and the prevention of waste. F&N built an innovation centre in Singapore for R&D, focusing on health and sustainability. Other than packaging, the innovation centre will also look into water efficiencies, energy conservation, environmental programmes and waste management. • Water Stewardship: We manage water use and recover and reuse water where possible. This year, we extended our water stewardship commitment to our supply chain partners. For example, bridging water optimisation gaps with our sugar manufacturers and chemical suppliers, and partnering with our suppliers to provide clean and sufficient water supply to Chaiyaphum Province, Thailand during the annual dry season. • Effluents and Waste: We minimise waste (in production and post- consumption) and help to create by-products from the residual liquid and solid waste. For example, we converted 1,250 MT of industrial sludge into fertiliser this year. We have also significantly exceeded our 2020 target and reduced solid waste intensity by 62%. • Packaging: We reduce rawmaterials needed and aim to ensure that packaging can be recycled, reused or composted. F&N proactively innovates, develops and sources sustainable packing solutions for our products. We have implemented various packing solutions in 2020, and are on track to meet our goal to have our beverage packaging to be fully recyclable. • Energy and Climate Change: We reduce our energy needs, use renewable energy and/or recover energy from our operations. Our energy and climate change strategy includes: improving energy efficiency in our operations, renewable energy programme, carbon footprint reduction in our value chain, route planning and managing climate change risks to our operations. • Sustainable Sourcing: We favour suppliers whose environmental practices adhere to circular economy principles. In June 2020, we launched a newSupplier Code of Conduct which covers business ethics, environmental management, human rights and occupational health and safety. • Creating Value for Society: Beyond the company, F&N raises awareness on the circular economy and good waste management practices by conducting education programmes for school children in Malaysia and Thailand. These links will be explored further in the chapters which follow. F E E D & F E R T I L I S E R S INDUSTRIAL SYMBIOSIS S T O R A G E L O G I S T I C S F E R T I L I S E R F A R M I N G O T H E R S E C T O R S These links will be explored further in the chapters which follow. CIRCULAR ECONOMY GRI 103-2 Our Sustainability Approach 030 FRASER & NEAVE HOLDINGS BHD