As part of F&N’s commitment to sustainability, F&N Group had set some ambitious sustainability performance targets in 2017 to be achieved by 2020, based on the high priority material issues identified.

This year, we have evaluated our performance against the 2020 Sustainability Targets and we have achieved our targets relating to the following material issues: Innovation, Talent Management, Creating Value for Society, Effluents & Waste, and Sustainable Sourcing.

Some areas require further effort and adaptation due to the COVID-19 circumstances, strategic decisions and operational changes and these include: Water Stewardship, Energy & Climate Change, Consumer Health & Safety, and Occupational Health & Safety. Key contributing factors supporting our performance milestones and gaps are elaborated in the respective chapters of the Sustainability Report.

A robust materiality assessment and stakeholder engagement were conducted this year. From there, we have set medium and long-term sustainability targets, especially for ‘high’ materiality issues. The latest materiality assessment and the 2025 sustainability targets will be reflected in next year’s Sustainability Report. These 2025 goals will drive F&N Group’s sustainability performance throughout our business and strengthen our commitment to creating long-term value for our stakeholders.

Key Material Issues
No
2020 Group Sustainability Target
Progress
1
To purchase 100% RSPO credits for palm oil usage by 2020

Target Achieved

RSPO Credits purchased for 106% of annual palm oil usage, thus achieving our 2020 Sustainability Target.

106% RSPO credits of total actual palm oil usage
Key Material Issues
2020 Group Sustainability Target
To purchase 100% RSPO credits for palm oil usage by 2020
Progress

Target Achieved

RSPO Credits purchased for 106% of annual palm oil usage, thus achieving our 2020 Sustainability Target.

106% RSPO credits of total actual palm oil usage
Key Material Issues
No
2020 Group Sustainability Target
Progress
2
To have zero lost time injury frequency rate by 2020

Target not met

2020 target not met as our Group lost time injury frequency rate is 1.97. We commit to implement more initiatives to create awareness among employees.

Key Material Issues
2020 Group Sustainability Target
To have zero lost time injury frequency rate by 2020
Progress

Target not met

2020 target not met as our Group lost time injury frequency rate is 1.97. We commit to implement more initiatives to create awareness among employees.

Key Material Issues
No
2020 Group Sustainability Target
Progress
3
To introduce at least one healthier choice option in all our product categories by 2020

Target not met

We have at least one healthier option for 11 out of 12 (92%) product categories.

F&N takes the position that reducing the sugar level of our energy drinks drastically would result in a loss of its functionality and purpose to our consumers. Hence, we did not proceed to launch a healthier option for ‘Energy’ category.

0
Key Material Issues
2020 Group Sustainability Target
To introduce at least one healthier choice option in all our product categories by 2020
Progress

Target not met

We have at least one healthier option for 11 out of 12 (92%) product categories.

F&N takes the position that reducing the sugar level of our energy drinks drastically would result in a loss of its functionality and purpose to our consumers. Hence, we did not proceed to launch a healthier option for ‘Energy’ category.

0
Key Material Issues
No
2020 Group Sustainability Target
Progress
4
To reduce the water intensity at our plants by 5% from 2017 by 2020

Target not met

The Group water ratio is 2.29 m3/MT, thus not achieving our 2020 Sustainability target. Higher water ratio is mainly due to significant operational changes in Shah Alam plant and COVID-19 circumstances that affected our water efficiency.

Key Material Issues
2020 Group Sustainability Target
To reduce the water intensity at our plants by 5% from 2017 by 2020
Progress

Target not met

The Group water ratio is 2.29 m3/MT, thus not achieving our 2020 Sustainability target. Higher water ratio is mainly due to significant operational changes in Shah Alam plant and COVID-19 circumstances that affected our water efficiency.

Key Material Issues
No
2020 Group Sustainability Target
Progress
5
To reduce solid waste intensity by 5% from 2017 by 2020

Target Archieved

The Group solid waste ratio has significantly reduced by 62% to 0.97, due to the various initiatives implemented by respective plants to recycle solid waste from production.

Key Material Issues
2020 Group Sustainability Target
To reduce solid waste intensity by 5% from 2017 by 2020
Progress

Target Archieved

The Group solid waste ratio has significantly reduced by 62% to 0.97, due to the various initiatives implemented by respective plants to recycle solid waste from production.

Key Material Issues
No
2020 Group Sustainability Target
Progress
6
To reduce energy intensity by 5% from 2017 by 2020

Target not met

The Group energy intensity ratio reduced slightly to 868.56 MJ/MT, thus not achieving our 2020 Sustainability target. Higher energy consumption is mainly due to significant operational changes in Shah Alam plant and COVID-19 circumstances that affected our energy efficiency.

Key Material Issues
2020 Group Sustainability Target
To reduce energy intensity by 5% from 2017 by 2020
Progress

Target not met

The Group energy intensity ratio reduced slightly to 868.56 MJ/MT, thus not achieving our 2020 Sustainability target. Higher energy consumption is mainly due to significant operational changes in Shah Alam plant and COVID-19 circumstances that affected our energy efficiency.

Key Material Issues
No
2020 Group Sustainability Target
Progress
7
To reduce GHG emissions intensity by 5% from 2017 by 2020

Target not met

2020 Sustainability target not met as Group GHG intensity ratio only reduced to 0.0673, mainly due to significant operational changes in Shah Alam plant and COVID-19 circumstances that affected our eco-efficiency.

Key Material Issues
2020 Group Sustainability Target
To reduce GHG emissions intensity by 5% from 2017 by 2020
Progress

Target not met

2020 Sustainability target not met as Group GHG intensity ratio only reduced to 0.0673, mainly due to significant operational changes in Shah Alam plant and COVID-19 circumstances that affected our eco-efficiency.

Key Material Issues
No
2020 Group Sustainability Target
Progress
8
To invest in product and process innovation to increase our product range, and improve efficiency and productivity

Target Archieved

We have implemented many innovation projects to improve our product range and improve efficiency and productivity.

Key Highlights

  • A total of 41 new products introduced since 2017, offering more options in different product categories, healthier options and convenience through differentiation in packaging
  • Employee-driven innovation projects through Winning as One Convention (Thailand) and Excel as One Convention (Malaysia), delivering cost savings or cost avoidance of approximately RM10 million per annum
  • Investment of over RM900 million in capital expenditure since 2017 to elevate our product innovations and drive cost competitiveness
  • Over 90% of the RTD beverages we sold today in Malaysia are healthier options
  • Our portfolio of Healthier Choice Logo certified range expanded from 4 in 2017 to 47 in 2020

Read more about 'Innovation', on pages 44 to 47 of Our Sustainability Report.

Key Material Issues
2020 Group Sustainability Target
To invest in product and process innovation to increase our product range, and improve efficiency and productivity
Progress

Target Archieved

We have implemented many innovation projects to improve our product range and improve efficiency and productivity.

Key Highlights

  • A total of 41 new products introduced since 2017, offering more options in different product categories, healthier options and convenience through differentiation in packaging
  • Employee-driven innovation projects through Winning as One Convention (Thailand) and Excel as One Convention (Malaysia), delivering cost savings or cost avoidance of approximately RM10 million per annum
  • Investment of over RM900 million in capital expenditure since 2017 to elevate our product innovations and drive cost competitiveness
  • Over 90% of the RTD beverages we sold today in Malaysia are healthier options
  • Our portfolio of Healthier Choice Logo certified range expanded from 4 in 2017 to 47 in 2020

Read more about ‘Innovation’, on pages 44 to 47 of Our Sustainability Report.

Key Material Issues
No
2020 Group Sustainability Target
Progress
9
To provide an average of at least 12 training hours per employee per year by 2020

Target Archieved

We exceeded our target of training hours this year, amidst the COVID-19 pandemic, supported by the e-learning opportunities introduced to employees.

Key Material Issues
2020 Group Sustainability Target
To provide an average of at least 12 training hours per employee per year by 2020
Progress

Target Archieved

We exceeded our target of training hours this year, amidst the COVID-19 pandemic, supported by the e-learning opportunities introduced to employees.

Key Material Issues
No
2020 Group Sustainability Target
Progress
10
To provide outreach and engagement programmes across Singapore, Malaysia and Thailand by exploring and implementing appropriate outreach programmes to address community needs

Target Archieved

We have continued to provide outreach and engagement programmes across Malaysia and Thailand via several programmes.

Key Highlights

  • 100% of our operations in Malaysia and Thailand implemented local community engagement, impact assessment and development programmes
  • Social investment of over RM2.4 million in supporting over 1,300 beneficiaries from vulnerable communities since 2017
  • Expanding school recycling programme to 756 schools in 2019, avoiding 4.7 million kg of recyclable items from going into landfill
  • Over 200,000 children and youths participated in grassroot sports programmes since 2017
  • Over 34,000 Malaysians participated in the series of 100PLUS Day to stay active since 2018
  • In the fight against COVID-19, we contributed more than 650,000 products to support frontliners and distributed over 500,000 products to about 10,000 underprivileged families in Malaysia

Read more about ‘Creating Value for Society’, on pages 58 to 69 of Our Sustainability Report.

Key Material Issues
2020 Group Sustainability Target
To provide outreach and engagement programmes across Singapore, Malaysia and Thailand by exploring and implementing appropriate outreach programmes to address community needs
Progress

Target Archieved

We have continued to provide outreach and engagement programmes across Malaysia and Thailand via several programmes.

Key Highlights

  • 100% of our operations in Malaysia and Thailand implemented local community engagement, impact assessment and development programmes
  • Social investment of over RM2.4 million in supporting over 1,300 beneficiaries from vulnerable communities since 2017
  • Expanding school recycling programme to 756 schools in 2019, avoiding 4.7 million kg of recyclable items from going into landfill
  • Over 200,000 children and youths participated in grassroot sports programmes since 2017
  • Over 34,000 Malaysians participated in the series of 100PLUS Day to stay active since 2018
  • In the fight against COVID-19, we contributed more than 650,000 products to support frontliners and distributed over 500,000 products to about 10,000 underprivileged families in Malaysia

Read more about ‘Creating Value for Society’, on pages 58 to 69 of Our Sustainability Report.

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