Fraser & Neave Holdings Bhd Sustainability Report 2020

Our Approach A lack of effective water management can have serious implications as F&N’s products and business is dependent on a reliable supply of water. Guided by the F&N Environmental, Safety and Health Policy and the principles of a circular economy, we are committed to responsible water stewardship and managing our water use accordingly to safeguard the availability of a clean water supply for local communities. While none of our sites are in high water-stress areas (according to World Resources Institute (WRI) Aqueduct), many regions in both Thailand and Malaysia have faced floods in recent years, and the effects of climate change are expected to intensify water stress in the future. Hence, water stewardship and its associated risks are regularly monitored as part of F&NHB enterprise risk management (ERM) and also by sustainability team who utilises tools such as the World Resources Institute (WRI) Aqueduct and World Wildlife Fund (WWF) Water Risk Filter. We have a range of water assessment and action policies which are applied across our facilities. Our Group-wide integrated approach includes efficiency measures, the safe return of waste water from our operations and mitigating risk in the supply. Our Initiatives This year, we grew our collaborations in support of water stewardship: • Educating our dairy farmers on water conservation and the reusability potential of water for cleaning and feed. • Partnering with our sugar manufacturers and chemical suppliers to find a collective solution in bridging the gap of water optimisation. • In Thailand, FNDT joined hands with our suppliers to provide clean and sufficient water supply during the annual dry season in Chaiyaphum Province to 180 households and 24 milk farms. We also implemented various projects and initiatives to reduce water consumption. Project highlights include: Usage of liquid sugar in Sweetened Beverage Creamer (SBC) products – Rojana plant Since January 2020, we have started to use liquid sugar in the production of Sweetened Beverage Creamer products in Rojana Plant, Thailand. By removing the process of dissolving cube sugar, we save around 132 m 3 of water per day. This has helped us to achieve cost savings of about 0.8 million THB. Water Recycling Project – Thailand Water Recycling (Phase 2) at FNDT: Water Recycling Project focuses on the sustainability and the security of water resources for our FNDT factory. Phase 2 involves the installation of Clarifier Pond System with a capacity to treat water at 120 m 3 per day using RO reused membrane. There is a tangible benefit of about THB2.70 million. Wastewater recovery – Pulau Indah plant Wastewater is reused in cooling tower, to avoid the usual discharge into public drains of 800 m 3 per day and saves approximately RM215,000 per year. Reusing Wastewater – Shah Alam plant Wastewater from Aseptic Cold-filling PET Line and Sugar Dissolving Line and Canning Line is treated via reverse osmosis and reused as cooling water, reducing water usage by 115,000 m3 per year. Our Target To reduce the water ratio at our plants by 5% from 2017 by 2020 Our Performance in 2020 Group water ratio in 2020 increased by 11% to 2.29 from 2017 The increase in Group water ratio is mainly due to significant operational changes in Shah Alam plant – a new Aseptic-cold filling line that has higher water consumption ratio compared to other production lines, and in- sourcing of two blow moulding lines which were previously procured from our supplier. Despite all the water efficiency initiatives put in place, the pandemic circumstances has also affected our overall ability to operate at the most efficient manner. A minimum amount of water is required for each production batch despite lower production volume. Some water efficiency projects have also been postponed. On the contrary, our operations in Thailand has improved its water ratio by 13% compared to baseline year. GRI 303-3 (2018); GRI 303-4 (2018); GRI 303-5 (2018) FY2018 FY2019 FY2020 Target for FY2020 FY2017 2.06 2.04 2.29 1.96 2.29 GROUP WATER RATIO (m 3 /MT) Circulate sugar syrup by Contisolv dissolving Dissolving sugar with water at 75 0 C Complete level 35% in buffer tank Add liquid sugar 67 Brix Circulate and add sugar to target 75 Brix Transfer to syrup tank Eco- Efficiency WATER STEWARDSHIP Read more about our performance by country on page 75 of this SR 074 FRASER & NEAVE HOLDINGS BHD