Fraser & Neave Holdings Bhd Sustainability Report 2020

Renewable Energy Sourcing and Generation Energy efficiency can make a significant contribution, but we recognise that in order to ultimately decouple our activities from GHG emission, we must transit from hydrocarbon based energy to renewable energy. Solar Energy – Rojana plant At our Rojana plant, we have installed a solar panel rooftop since April 2020, which gives us saving of 6 million THB. The 30 million THB Solar Photovoltaic (PV) system with 1MWp generating capacity significantly reduces energy offtake from the grid by utilising renewable energy for its daily operations. Solar Energy – Shah Alam, Pulau Indah and Bentong plant As part of the strategic direction to reduce fossil fuel consumption and our carbon footprint, we are setting up a renewable energy programme at our Shah Alam, Pulau Indah and Bentong plants in Malaysia which entail the setting up of 10MWp Solar PV system at the three plants starting in September 2021. Reducing Carbon in Our Value Chain As well as making improvements to our own operations through energy efficiency and renewable energy use, F&NHB is able to share best practices and encourage improvement along our full value chain. We understand that it is essential to support our business partners and customers in reducing their own GHG emission impacts. Route Planning Optimal route planning can help us to reduce costs and be more environmental-friendly. Over the past few years, we have continued to streamline our distribution networks. We have made more than RM800 million of capital investments since 2014 on new lines and warehouses across our production facilities in various locations. Our decentralisation strategy also means that our manufacturing and warehouse operations are closer together, resulting in shorter routes to market and lower carbon emissions from logistics. To further optimise route planning, we have invested RM180 million in a new integrated warehouse at our Shah Alam plant, equipped with an Automated Storage Retrieval System (ASRS). This new warehouse is expected to commence operations in FY2021. The ASRS will manage the automated process of getting finished goods ready for delivery to market or distributors’ warehouse. The system will drive improvement through: Similarly, we will also establish a regional distribution centre (RDC) in Rojana, Ayutthaya Province, Thailand, equipped with 287 million THB ASRS. Strategically located 1.7 km from our dairies manufacturing plant in Rojana, Ayutthaya Province, the 20,000 square metres RDC is expected to be operational in 2021. This RDC will serve as our regional distribution hub for F&N Dairies Thailand (FNDT)’s products. Operations Exposure To Climate Change Risks F&NHB’s operations and supply chain face risks due to climate change impacts. This includes impacts from rising sea levels, extreme temperatures, farming shortages and water availability. Climate change risks are monitored and managed as part of our Enterprise Risk Management process, which is under the responsibility of the Sustainability and Risk Management Board Committee. Identified climate change related risks include flooding and mineral water sourcing and contamination. To manage these risks, we work closely with state authorities and local councils which monitor climate-change risks. We also have robust incident escalation procedures and response plans in place as part of our Business Continuity Management. Eco- Efficiency More accurate stock management Elimination of product damage caused by mishandling Reduction of time spent by workers at the warehouse Improvement in warehouse safety In-sourcing of break bulk activities 082 FRASER & NEAVE HOLDINGS BHD