Fraser & Neave Holdings Bhd Sustainability Report 2020

PROGRESS AMIDST THE CHALLENGING TIMES FY2020 was extremely challenging because of the COVID-19 pandemic. Yet, the Group continued to focus on the 10 Sustainability Commitment Targets established in 2017, with commendable results. Of the 10 goals that had been set for the year 2020, we achieved five while making good progress on another three. Despite all the current initiatives which we have put in place, COVID-19 related circumstances certainly have impacted demand and disrupted operations. That, in turn, affected our ability to operate in the most efficient manner, including for water and energy utilisation; and delayed our plans for new projects implementation. The five key sustainability targets achieved were: Providing our executive and non-executive employees an average of 16 and 10 training hours respectively 2 Purchasing RSPO Credits for all palm oil used 3 Reducing our solid waste intensity by 5% from the 2017 baseline 1 Continuously investing in product and process innovation 4 Continuously providing outreach and engagement programmes across Malaysia and Thailand 5 The three material areas in which we achieved improvement were: Reducing our energy intensity by 5% from the 2017 baseline Reducing our greenhouse gas (GHG) emissions intensity by 5% from the 2017 baseline Offering at least one healthier choice option in every product category Meanwhile, we need to focus more on the following two priorities: a) Achieving zero lost time injury frequency b) Reducing our water intensity by 5% from the 2017 baseline For a better understanding of the key factors supporting our performance milestones and gaps, please refer to the relevant chapters in the Sustainability Report. Overall, we are pleased to share that our sustainability performance remains noteworthy according to independent assessors. Not only have we been included as a constituent of the FTSE4Good Bursa Malaysia Index (F4GBM) for the second year running, this time around we attained a higher rating for our Environmental, Social and Governance (ESG) practices. This is an important external validation on the progress of our sustainability efforts to deliver value to our stakeholders. OUR RESPONSE TO COVID-19 More than anything, the unprecedented situation caused by COVID-19 has reaffirmed the critical role that our enlarged pool of stakeholders play in our business continuity. Consequently, it further reinforced the importance that the Group manage sustainability-related social risks that could affect our employees, suppliers, customers, as well as the community. Within the workplace, we are ensuring our employees’ well-being by replacing face-to-face meetings with videoconferencing. We have also implemented all the standard operating procedures (SOPs) and guidelines issued by the authorities for employees working at our plants, and encouraged our corporate employees to work from home even when this was not mandatory. Additionally, we have set up a 24-hour employee care line. With the benefit of a well-oiled and resilient supply chain, the close partnership with our suppliers and trade partners helped to ensure minimal supply disruption and adequate inventory of our core products. During the Movement Control Order (MCO) in Malaysia, we worked closely with raw and packaging material suppliers to optimise our output despite operating with a reduced workforce and fewer hours, as stipulated by the authorities. Our e-commerce platform, F&N Life was also quickly scaled up tomeet the rapid increase in demand fromconsumers for non-contact shopping. To support communities most affected by the pandemic, we identified vulnerable groups and handed out our products to them. Throughout Ramadan and Raya, we distributed over 500,000 products to about 10,000 underprivileged families. Meanwhile, in a show of appreciation for frontline healthcare workers and the police force, we also distributed more than 650,000 products to help them keep hydrated and energised while they worked tirelessly to serve the country. Read more about these initiatives on pages 38 to 39 of this SR Read more about a summary of our progress on pages 32 to 35 of this SR 007 SUSTAINABILITY REPORT 2020