Fraser & Neave Holdings Bhd Annual Report 2021

Material Issues of F&N Opportunities for F&N if issue is addressed Potential Risks for F&N if issue is not addressed Energy Minimising GHG emissions and energy use in our operations, in line with global climate goals. • Reducing energy use and emissions allows F&N to reduce costs • Pre-empt future regulation (e.g. carbon tax) • Align with targets of governments and customers • Public pressure resulting in reputational risks • Rise in operational costs with stricter regulat ions and energy sourcing changes Climate Change Adapting our business model to ensure resiliency to climate-related risks. • Meet growing expectations of investors and regulators to assess climate-related risks and opportunities, e.g. supply chain disruption, market shif ts or extreme weather events • Extreme weather events due to climate change ex po s e ou r a s s e t s and operations to costly damages • F a i l u r e t o me e t s t a k e h o l d e r s ’ expec tations in managing climate change pose reputational risks Water Stewardship Protecting and preserving shared water resources. • Efficient water management presents cost saving opportunities for the F&N • Enhance water security for suppliers, increasing supply chain resilience • Water insecurity will have a direct impact on the F&N operations and business as water is a key material resource • Regulatory risks around water as an important national resource Waste Management Minimising waste and safely disposing of hazardous materials. • Reducing and reusing waste supports operational efficiency, which leads to cost savings • Inculcate sustainable practices and values in employees and communities through the 3Rs: Reduce, Reuse and Recycle • F a i l u r e t o me e t s t a k e h o l d e r s ’ expectations in managing our waste impact pose reputational risks Packaging Developing sustainable packaging solutions to reduce the impact of packaging on the environment. • Meeting cus tomer and consumer demands for sustainably packaged products uplifts reputation • Improve packaging resource e!ciency • Reduce reliance on virgin materials, and saving costs • F a i l u r e t o me e t s t a k e h o l d e r s ’ expectations in managing the packaging pose reputational risks • Risk of competitors taking the lead and capturing market shares Biodiversity Sourcing raw materials responsibly, protecting biodiversity and eliminating deforestation from our supply chain. • Mitigate reputational risks of negative environmental practices, particularly in our supply chain • The move away from exploitative processes creates a sus tainable business operation • F a i l u r e t o me e t s t a k e h o l d e r s ’ expectations in protecting the natural environment and biodiversity rt iti f r if i i r Better Planet te tial isks f r F if iss e is t a resse Management Discussion & Analysis 055 Fraser & Neave Holdings Bhd ! Annual Report 2021