Fraser & Neave Holdings Bhd Sustainability Report 2020

Eco-credentials We source raw materials that are certified with eco-credentials, such as those from the Forest Stewardship Council and RSPO, to ensure that they are produced in an environmentally and socially responsible manner. All paper products used in the tetra packaging of our chilled beverages carries the certification. In 2020, we have successfully met our target to purchase RSPO credits for 100% of our projected palm oil usage. RSPO Credits Purchased RSPO issues credits which act as proof that one tonne of certified palm oil was produced by an RSPO-certified company or independent producer and has entered the global palm oil supply chain. F&NHB purchases RSPO Credits to support the production of certified sustainable palm oil. ENSURING SUPPLY CHAIN RESILIENCE DURING COVID-19 The global COVID-19 pandemic has resulted in significant supply chain disruptions, exposing areas that can be improved in our operational and management system. To ensure supply chain resilience and avoid disruptions, F&NHB worked closely with our trade partners and suppliers to ensure adequate supply and availability of F&N core products to our customers and community during this period. F&NHB also recognised the need to strengthen conventional business continuity planning with our suppliers and trade partners. F&NHB conducted a supplier assessment exercise to understand the resiliency of our supply chain and implement mitigation measures for suppliers that may not be able to meet demands. F&NHB’s diverse pool of suppliers and our strong relationships with those on the local level have also helped to mitigate the risk of disruption from one critical supplier. InMalaysia, we issued weekly supply chain bulletins to keep all suppliers informed of the changing situation and respective actions taken, and we work closely with key retailers to ensure core products like canned milk, UHT and drinking water are sufficiently stocked in their warehouses for long-term consumption. We have kept the supply chain cost competitive while exceeding service levels despite manpower impositions caused by the MCO in Malaysia. In Thailand, the Supplier Productivity Enhancement Programme has been implemented to help our suppliers manage supply shocks and disruptions. Through our work with suppliers, we were able to maintain a three-month stock minimum to mitigate any impact to inventory levels. F&NHB also supported our customers during periods of uncertainty when cash flow is likely to be tight. We have worked together to improve flexibility on payment terms and payment extensions on a case- by-case basis for selected customers. Our Initiatives Our Performance Highlights 106% RSPO credits of total actual palm oil usage) TOTAL RSPO CREDITS PURCHASED Responsible Supply Chain 3,000 50 5,000 3,600 13,000 8,400 25,000 19,000 FY2018 FY2019 FY2020 FY2017 Purchase of RSPO Credits GROUP MALAYSIA THAILAND FY2017 3,050 3,000 50 FY2018 8,600 5,000 3,600 FY2019 21,400 13,000 8,400 FY2020 44,000 19,000 25,000 Malaysia Thailand 088 FRASER & NEAVE HOLDINGS BHD