Fraser & Neave Holdings Bhd Sustainability Report 2021

Value Chain Impacts 111 Fraser & Neave Holdings Bhd ! Sustainability Report 2021 This year, F&N is considering biodiversity as a material issue for the first time. We have established a statement, which serves as a foundation for biodiversity management at F&NHB. We aim to protect biodiversity and ecosystems through the following commitments: 1 Avoid deforestation in our supply chain. 2 Avoid operating and developing in close proximity to nationally, or internationally recognised areas of high biodiversity value, including World Heritage areas, International Union for Conservation of Nature (IUCN) Category I-IV protected areas, RAMSAR Sites and key biodiversity areas. 3 In any circumstance where our production sites or a proposed project is located within, or depend upon, areas of high biodiversity value. We will apply the following mitigation hierarchy: a. Avoidance Avoid operating and developing in areas of high biodiversity value. b. Minimisation Implement measures/initiatives to monitor and minimise the impacts on biodiversity from our operations. c. Restoring Seek to restore/rehabilitate areas where impacts cannot be prevented. d. O%set Consider biodiversity compensation/o*sets measures, where there is residual impact. 4 In managing potential biodiversity risk, we will engage with necessary stakeholders, including local authorities and the community in close proximity, to ensure the appropriate mitigation strategy is developed to minimise impacts to as low as reasonably possible. We are also committed to collaborating with external partners such as biodiversity experts to support our biodiversity assessment and management process. These commitments are applicable to all current and future operational sites at F&N. At all 9 operational sites in Malaysia and Thailand, F&N shall ensure group-wide compliance with the biodiversity commitments through monitoring systems as part of the company’s environmental policy. We also encourage our suppliers and business partners to commit to protecting the biodiversity and ecosystems in their operations through our Sustainable Agriculture Guideline, where we engage and work with our suppliers to build an environmentally and socially responsible supply chain. APPROACH PERFORMANCE GRI 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. • None of our operational sites are in or adjacent to protected areas and areas of high biodiversity value outside protected areas. BIODIVERSITY SDG 15: Life on Land GRI Index: GRI 304-1 Our future strongly depends on biodiversity and healthy ecosystems. In recent decades, our world is experiencing biodiversity loss and ecosystem degradation at an unprecedented pace. The F&N business is dependent on ingredients and materials such as palm oil, sugar and paper, and the natural environment may in turn be impacted by the F&N business, especially upstream of the supply chain. As such, we recognise the importance of sustainable sourcing, and our role in ensuring healthy natural ecosystems together with our suppliers. It is necessary to be aware of our biodiversity-related risks so to properly manage our operations in areas where biodiversity is rich. Currently, F&N looks into sustainable sourcing of palm oil (begin to use physical certified physical palm oil) and paper (100% FSC-certified paper products used in carton packaging of chilled beverages). Read more in “Supply Chain Stewardship”, on pages 059 to 063 of this SR. SDG 17: Partnerships for the Goals