Fraser & Neave Holdings Bhd Sustainability Report 2021

Food Loss & Waste in the Value Chain An estimated 1/3 of all food produced globally is lost or goes to waste, while millions in the world do not have enough to eat. At the same time, food loss and waste contribute to food shortage, water stress, biodiversity loss and increased greenhouse gas emissions. As a food and beverage manufacturer, F&N wants to optimise our position to minimise food wastage throughout our entire value chain. Thus, alongside cutting production waste to landfills by 30%, we are committed to reducing food loss/waste by: • Reducing food loss throughout our value chain, from sourcing, manufacturing and logistics; and • Collaborating with our business partners to reduce food waste Our framework for managing food loss and waste is guided by the Food and Drink Material Hierarchy from the Food and Agriculture Organisation of the United Nations. Together with upstream and downstream partners in our value chain, we will focus on Prevention, Optimisation, Recycling and Recovery initiatives to minimise food wastage along our value chain. • We work closely with our suppliers to ensure our raw materials are of set standards and quality. • We track, measure and monitor any losses of our raw materials on monthly basis to reduce food loss. Raw Materials • We team up with our both partners to constantly look for innovative initiatives/programmes to reduce food loss, or reuse food loss for alternative usage, for example transforming sludge into fertilisers for farmers. Collaboration with Partners • To manage the food loss, we regularly track, measure and monitor any losses during our manufacturing processes. • From there, we improve our food loss management by identifying key categories and waste streams. • We strive to reduce the impacts from our operations, and this means complying with, and going beyond relevant regulations. Production Processes • To manage the food surplus, we regularly track, measure and monitor any losses during retail processes. • We channel our surplus food to the organisations and community in need. Managing Food Surplus Various initiatives have been implemented towards this end, including: • Collaborating with partners to re-use food loss, for example transforming sludge into fertilisers In 2021, 100% of industrial sludge from production are converted into organic fertiliser and distributed to local farmers. Over 1,247 metric tonnes of industrial sludge from our wastewater treatment plants were converted into fertiliser. • Channelling surplus food to charitable organisations and communities in need Since 2019, we have established a partnership with Yayasan Food Bank Malaysia to support the Food Bank Siswa programme. We have also supported various communities in need with surplus food. 106 O P E R A T I O N A L E C O ! E F F I C I E N C Y