Fraser & Neave Holdings Bhd Sustainability Report 2020

The spike of energy intensity ratio was recorded in 2019, mainly due to significant operational changes in Shah Alam plant – a new Aseptic Cold-filling PET line that has higher energy consumption ratio compared to other production lines, and in-sourcing of two blowmoulding lines which were previously procured from our suppliers. Unfortunately, despite all the energy efficiency initiatives put in place, the pandemic situation has also affected our overall eco-efficiency performance. A minimum amount of energy consumption is required for each production batch despite lower production volume. Short-runs and frequent start-stop have resulted in higher specific energy consumption. Some energy saving projects have also been postponed. With this, our Group GHG Emissions Intensity ratio is similarly impacted. Our Approach F&NHB operations, including manufacturing, storage and transportation, require energy. We have applied a range of initiatives, based on circular economy principles, to improve our energy performance. We uphold this commitment in our entire value chain by engaging with our suppliers and service providers through an agreement to commit to environmentally friendly practices. We based our intensity target on national GHG emission reduction commitments – Malaysia’s government has targeted a 45% reduction in GHG intensity by 2030 from a 2005 baseline, and Thailand has a reduction target of 30% by 2036 from a 2010 baseline. F&N safeguards internal and external preparedness to realise our performance goals. Our Target To reduce energy intensity ratio by 5% from 2017 to 2020 Our Performance in 2020 Energy intensity ratio has reduced by 1% from 2017 Our Target To reduce greenhouse gas intensity ratio by 5% from 2017 to 2020 Our Performance in 2020 Greenhouse gas intensity ratio has reduced by 2% from 2017 GRI 302-1; 302-3; 305-1; 305-2; 305-4 GROUP ENERGY INTENSITY RATIO (MJ/MT) 0.0674 0.0658 0.0692 0.0640 0.0661 FY2018 FY2019 FY2020 Target for FY2020 FY2017 Climate change is a defining global challenge of the 21st century, presenting risks to the global economy. For F&N, climate change presents risks including price fluctuations on raw material commodities, and access to water resources. Managing this topic presents the opportunity to turn challenges and risks into climate-related opportunities for F&N, through cost savings, energy savings, alignment with customer ambitions and support and contribution to the development of government policies. F&NHB is committed to reducing energy consumption and GHG emission intensity as our main priorities in managing climate change. As part of our contribution, F&NHB also upholds our responsibility to help minimise carbon footprints across our value chain, ranging frommanufacturing, packaging, storage and logistics, to end use and disposal. Fulfil and enhance the energy management system as energy conservation is one important part of our operations Well manage and utilise energy conservation technology and best practices as part of our continuous improvement Implement and improve energy management system to comply with relevant laws and regulations Conduct energy improvement programme to optimise business operations Promote, support and manage energy conservation efficiently 1 2 3 4 5 GROUP GHG INTENSITY RATIO (MTCO 2e /MT) Eco- Efficiency Our Energy Management Policy All our operations in Malaysia and Thailand are guided by the following principles: ENERGY & CLIMATE CHANGE Read more about our performance by country on page 84 of this SR 876.41 860.16 895.51 832.59 868.56 FY2018 FY2019 FY2020 Target for FY2020 FY2017 080 FRASER & NEAVE HOLDINGS BHD