Fraser & Neave Holdings Bhd Sustainability Report 2021

Value Chain Impacts 109 Fraser & Neave Holdings Bhd ! Sustainability Report 2021 Guaranteeing that our packaging will perform as it is designed to, as well as be aesthetically good and safe for our consumers is an industrial norm. At F&N, our focus is on designing for the environment, meaning our packaging will have minimum impact on the environment. We have set long term goals to increase the percentage of our packaging to contain recycled materials and that all our packaging is recyclable by 2025. Our strategies include investing in new innovations together with the integration of circular economy concepts and working closely with our stakeholders to find packaging solutions. F&N’s approach is focused on: • Reducing the amount of materials used in our packaging We are reducing the volume of packaging materials used as a percentage of product. We are minimising materials that are not favourable to the environment in our labels and flexibles by switching to PET and laminate paper packaging. • Increasing the usage of sustainable packaging materials We are working to include more recycled content in the packaging materials, as well as sourcing more renewable and bio-based packaging materials such as sugarcane-based plastic. We are working to find new suppliers who can meet our requirements for sustainable packaging materials including rPET. • Designing packaging to be recyclable We are increasing the recyclability of the primary and secondary packaging used in our products. This requires us to address challenging packaging materials such as labels and be flexible in order to find alternative solutions. To close the loop, F&N has partnered with local councils, recycling partners and non-governmental organisations (NGOs) to generate awareness of recycling and the 5R concept amongst school-going children. At the same time, F&N seek to tackle post-consumer packaging waste through industry collaboration such as the Malaysian Recycling Alliance (MAREA). Read more in “Our Key Partnerships & Collaboration”, on pages 038 to 039 of this SR. GRI Index: GRI 301-1, GRI 301-2 With the increase in awareness of the environmental impacts of single-use plastics, consumers and stakeholders are actively demanding companies to take action and come up with a sustainable solution towards this issue. Together with pressure from various stakeholders, governments around the world have introduced many environmental policies that are designed to encourage companies to change how their products are being produced. For example, Thailand government’s introduction of a ‘Roadmap on plastic waste management 2018-2030’ and Malaysia’s Plastic Sustainability Roadmap will have an impact on the F&B industry. As a food and beverage company, F&N views packaging as one of critical aspects where we could make positive impacts on the society and the environment by seeking out sustainable packaging solutions and designing products to encourage recyclability and circularity of the materials. This could lead to reduced resource intensity in our packaging. PACKAGING APPROACH SDG 12: Responsible Consumption and Production SDG 17: Partnerships for the Goals TARGET • Increase the average recycled content in our packaging to 25% Progress • The average recycled content in our packaging has improved from 20% in FY2020 to 22% in FY2021. • At F&NHB, we have also set an additional target to have 100% of our packaging recyclable by 2025. OUR 2025 COMMITMENTS