Fraser & Neave Holdings Bhd Annual Report 2021

SUSTAINABILITY AT THE CORE Given the massive changes and challenges brought about by COVID-19, in FY2021, we re-assessed our material matters and refreshed our materiality matrix. We also outlined a new set of sustainability targets to be achieved by 2025. Among these is the goal to achieve 100 per cent physical Roundtable on Sustainable Palm Oil (RSPO)-certified palm oil by 2025. This is an ambitious target, but one that we are confident of meeting given the progress made on this front. Having reached a key milestone in 2020 of purchasing RSPO credits for 100 per cent of our palm oil requirement, we have begun our transition with 20 per cent uptake of physical RSPO certified palm oil and 80 per cent in credits this year. F&N Group also scored the highest among 12 Asian companies included in the WWF Palm Oil Buyers Scorecard (POSB) 2021 and ranked 46 out of 142 global respondents. This is something we can justifiably be proud of and will continue to work on over the next few years. Our materiality matrix now includes four new material matters, among which is Human Rights. Although there is minimal risk of human rights violation in our Malaysian and Thai operations, we recognise that such risks may exist within our extended supply chain. We have conducted a human rights risk assessment to obtain greater clarity on the totality of our risks across our value chain, following which we have developed a Human Rights Policy and a due diligence manual. Another global issue on which we are placing greater emphasis is waste management, and specifically that of plastic. Towards this end, we are a founding member of the Malaysia Recycling Alliance (MAREA), comprising companies in the fast-moving consumer goods (FMCG) industry, which seeks to find sustainable solutions to the management of post-consumption packaging. F&NHB is also further strengthening our environment, social and governance (ESG) understanding and performance by joining the CEO Action Network (CAN), an informal coalition of CEOs and Board members focused on sustainabilit y advocacy, capacit y building, and performance. Finally, we are cognisant of the need to nurture greater gender diversity in decision-making positions. Towards this end, we made a positive step forward by welcoming another female member to our Board this financial year. At the management level, women already make up 45 per cent of the total, far exceeding the 30% baseline. Fraser & Neave Holdings Bhd ! Annual Report 2021 Key Messages 027