Fraser & Neave Holdings Bhd Annual Report 2021

Managing and balancing s t akehol der s’ expec tations/perceptions in relation to environmental, social and governance (ESG) aspects such as human rights, Halal assurance, community development and inclusive growth have always been challenging as ESG topics have rapidly climbing on the ranking of top concerns amongst many leaders, investors, and other stakeholders. RISK Link to material issues: • Proactive stakeholder engagements including shareholders & investors, customers, suppliers, regulators, communities, and employees. • Full commitment from our Board of Directors in implementing our strategic initiatives as well as sustainability priorities. • Policies and procedures are established, supported by dedicated resources to implement the framework, and uphold the various compliance standards, including Halal Governance and Assurance Framework. • Stringent compliance with various compliance standards along our entire value chain, from sourcing of raw materials to delivery of products. • Close monitoring of news published in the media and response procedures are in place to address circumstances should it occur. MITIGATION ACTIONS Managing Stakeholders’ Expectations and Perceptions 7 The Group could be exposed to governance and ethics-related risks such as fraud and corruption practices involving employees and/or external stakeholders which eventually may result in financial losses and reputational repercussions. RISK Link to material issues: • Top-level commitments from the Board and Senior Management on zero-tolerance towards unethical practices. • Awareness training programme for employees designed to enhance awareness in protecting the interest of the Group. • Whistleblowing channel is available for internal employees as well as the public to escalate concerns or report to the Receiving Officer should there be any incident detected. MITIGATION ACTIONS Fraud and Corruption Risks 8 Rising concerns associated with environmental impact such as biodiversity loss, waste and pollution risks, water-related risks, and extreme weather events. RISK Link to material issues: At F&N, we recognise the role of business in protecting the environment. The transition to a circular economy o$ers opportunities to create business value as well as minimise environmental impacts. • We are guided by our Environmental, Safety and Health Policy, which ensures all major plants in the group are ISO 14001:2015 (environmental management system) certified. • We undertake Environmental Impact Assessments prior to any project; we work with local communities to protect and preserve the environment; and • We strive for zero waste as well as zero pollution through continuous improvement of our environmental management system. MITIGATION ACTIONS Environmental Concerns (Emerging Risk) 9 Management Discussion & Analysis 059 Fraser & Neave Holdings Bhd ! Annual Report 2021