Chairman
Chief Executive Officer
Despite a challenging 2025 marked by regional and global geopolitical uncertainties that affected our operating landscape, we take pride that Fraser & Neave Holdings Bhd (F&NHB or the Group) has remained steadfast in fulfilling our purpose – to build a better business, contribute to a better society, and nurture a better planet. Guided by these principles, we continued to make purposeful progress, delivering more — more value, more impact and more progress for our people, our communities, and our planet.
With this same commitment, we are pleased to present F&NHB’s Sustainability Report (SR) for the financial year ended 30 September 2025 (FY2025). This report outlines our continuing journey in building a sustainable and resilient organisation — one that goes beyond financial performance to deliver shared values across the Environmental, Social and Governance (ESG) pillars.
Our report has been prepared in accordance with the Global Reporting Initiative (GRI) Universal Standards 2021, with selected Safety, Health and Environmental (SHE) indicators independently verified by Lloyd’s Register Quality Assurance (LRQA).
As we conclude the year, we are pleased to have achieved 9 of the 12 sustainability goals set in 2020 for 2025. Although targets in Water Stewardship, Energy, and Employee Health, Safety & Wellbeing were not fully met, two of these areas showed measurable improvements over baseline levels. Environmental performance was influenced by operational expansion, which increased energy and water consumption intensity. Excluding these factors, our performance remained on track and demonstrated tangible progress, reaffirming our commitment to continuous improvement and operational efficiency.
Despite operational growth, overall greenhouse gas emissions intensity improved by 8% since 2020, reaffirming our commitment to climate action.
We have cut solid waste sent to landfill by 95% since 2020, with all our beverage and dairy plants now producing zero waste to landfill, marking a significant step towards a circular and cleaner future.
We have increased the recycled content in our packaging to 29%, marking meaningful progress in our journey towards circular packaging solutions.
Through proactive safety measures, our lost time injury frequency rate dropped from 1.97 in 2020 to 0.33, reflecting progress in protecting our employees.
We surpassed our target of two thirds, with 70% of our portfolio now carrying the Healthier Choice Logo (HCL), making it easier for consumers to make healthier choices every day.
Innovation remains at the heart of delivering “Pure Enjoyment, Pure Goodness” to our consumers. With one in nine products being new, we are offering more variety, better quality, and greater value.
All our key suppliers are now fully aligned with F&N’s Supplier Code of Practice (SCOP), strengthening trust, ethics, and sustainability across our supply chain.
As we close this reporting cycle, we are now setting new, forward-looking targets to accelerate progress and drive greater impact towards our long-term sustainability ambitions.
In preparation of Bursa Malaysia’s upcoming mandatory climate-related disclosure requirements under the National Sustainability Reporting Framework (NSRF), we have proactively aligned our reporting with the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), ahead of schedule. This early adoption reinforces our commitment to transparency, accountability, and alignment with global best practices.
During the year, we also broadened our data collection and reporting scope to include our new Food pillar, reflecting our commitment to comprehensive and integrated ESG reporting across the Group.
To guide our next phase of growth, we embarked on a comprehensive refresh of our materiality assessment through a double materiality lens. This approach evaluates both the financial implications of sustainability-related risks and opportunities, and the broader environmental and social impacts of our operations. The refreshed matrix, to be unveiled next year, will serve as a foundation for our long-term sustainability strategy and decision- making.
Building on this, we are developing our 2030 sustainability targets, aligning them with emerging challenges, stakeholder expectations, and the broader ESG ambitions of our parent company, Fraser & Neave, Limited (F&N Group).
Our Integrated Dairy Farm in Gemas, Negeri Sembilan — set to be Malaysia’s largest — exemplifies our commitment to national food security and sustainable agriculture. Aligned with the Malaysia Madani framework, the farm incorporates circular practices such as feed-to-fertiliser and waste-to- energy systems to maximise resource efficiency and minimise environmental impact. We are also strengthening its sustainability roadmap through ongoing carbon projection and decarbonisation studies, alongside a biodiversity risk assessment now in progress.
We continue to advance Malaysia’s Halal ecosystem through collaboration with the Halal Development Corporation Berhad (HDC) under the Halal Sourcing Partnership Programme. Across the region, we are also empowering over 2,000 dairy farmers in Thailand through our F&N Farming Excellence System, which promotes productivity, knowledge transfer and sustainable farming. Through initiatives such as the F&N Business Partner Award, we recognise and develop our suppliers, with three Malaysian partners honoured in FY2025 for their excellence and shared values.
As proud members of Roundtable on Sustainable Palm Oil (RSPO) and Supplier Ethical Data Exchange (SEDEX), we achieved 100% Certified Sustainable Palm Oil (CSPO) usage across all operations in FY2025, marking a key milestone in our responsible sourcing journey and distinguishing us as the only industry player to adopt this higher-cost but more sustainable standard.
At F&NHB, we believe that building a better society begins with empowering people and nurturing shared values within the communities we serve. Across Malaysia, our social initiatives continue to drive empowerment and wellbeing, from festive outreach programmes for underprivileged communities to Dapur Panas Digital, a Ramadan collaboration with TV3 that supports B40 women entrepreneurs in growing their businesses.
Our partnership with Montfort Boys Town continues to empower youth through digital and culinary training, equipping them with practical and marketable skills for future employability. In parallel, our long-standing School Recycling Programme, now in its 18th year, continues to cultivate environmental consciousness among students nationwide. In collaboration with Solid Waste and Public Cleansing Management Corporation (SWCorp) and local councils, we engage schools through nationwide initiatives such as the Pertandingan Kitar Semula Sekolah-Sekolah (PerKISS) and interactive eco-themed roadshows.
In East Malaysia, we are proud to support the Bidayuh community in Bung Jagoi Heritage Village as part of our water stewardship and community development efforts. This project, which includes a new water pump system and restored storage infrastructure, helps secure over 5.5 million litres of clean water annually, while strengthening community resilience and preserving the ecological and cultural heritage of the Jagoi Bidayuh.
Through the Malaysian Ministry of Education’s (MOE) “Program Susu Sekolah” (PSS), we are proud to supply UHT fresh milk to over 85,000 students from B40 families across Melaka, Negeri Sembilan, and Johor. We believe that this partnership with MOE enables us to play a meaningful role in enhancing nutrition and supporting the healthy development of Malaysia’s next generation.
At Gemas, home to our Integrated Dairy Farm, we have deepened community engagement through programmes reaching over 5,000 members of the local community. These initiatives were delivered in collaboration with local authorities and agencies such as Majlis Daerah Tampin, Pejabat Daerah Kecil & Tanah Gemas, Federal Land Development Authority (FELDA), Federal Land Consolidation and Rehabilitation Development Authority (FELCRA) and local schools. Together, these efforts help foster community wellbeing and strengthen social resilience.
Delivering more also means offering healthier, more nutritious choices. We are proud that more than two thirds of our portfolio now consists of healthier options aligned with national nutritional guidelines, making it easier for consumers to enjoy better nutrition every day.
This year, we expanded our portfolio with new sugar-free options such as 100PLUS ZERO Peach and F&N Sparkling Zero, alongside nutritious additions like F&N Magnolia 100% Fresh UHT Milk and F&N NutriWell Plant- based Milk. These products offer refreshing choices that support healthy living and cater to diverse consumer preferences across Malaysia and Thailand.
Through sustained investment in solar energy, our plants in Malaysia and Thailand now operate with a combined 19.38 Megawatt Peak (MWp) rooftop solar capacity, generating over 19 million kilowatt-hour (kWh) annually — equivalent to the carbon absorbed by approximately 88,000 trees. This represents a significant milestone in our decarbonisation journey and our commitment to supporting national renewable energy ambitions in both countries.
Through initiatives such as rainwater harvesting, water reuse systems and process optimisation, we continue to enhance water efficiency across our operations. Circular innovations, which include converting sludge into fertiliser, repurposing okara by-products into animal feed, and turning waste into renewable energy, demonstrate our commitment to resource recovery and waste minimisation.
This year, we are pleased to introduce our fully Recycled PET (rPET) bottle for our new BORNEO SPRINGS series, made entirely from 100% recycled plastic, a testament to our commitment to sustainable packaging and eco-conscious innovation.
To further reduce waste while supporting vulnerable communities, we have established long-term partnerships with Yayasan Bursa Malaysia, The Lost Food Project, Kechara Soup Kitchen and Kembara Kitchen, collectively contributing over 20,000 kg of surplus food products to those in need in FY2025.
We are honoured that our continued pursuit of excellence in sustainability and responsible growth has been recognised by leading organisations and industry peers:
These achievements reaffirm our consistent performance and unwavering commitment to ESG excellence.
Gold Award (Consumer Products & Services) at The Edge ESG Awards 2025, marking our third win for excellence in ESG performance.
Ranked among the Top Six Global Beverage Companies in the S&P Global Corporate Sustainability Assessment (CSA) 2024, with an improved year-on-year ESG score.
Inclusion for the seventh consecutive year in the FTSE4Good Bursa Malaysia (F4GBM) Index and the fifth straight year in the FTSE4Good Bursa Malaysia Shariah (F4GBMS) Index.
Recipient of the Labour Management Excellent Award 2024 (National Level), alongside the Thailand Safety Award 2025 and Zero Accident Award 2025, underscoring our commitment to workplace safety and employee wellbeing.
1st Runner-Up in the Fast-Moving Consumer Goods category at the 2024 Graduates’ Choice Award (GCA).
As we look to the future, we extend our sincere appreciation to our employees, partners and stakeholders for their continued trust and collaboration. Sustainability is not a destination but an ongoing journey that calls for perseverance, innovation, and partnership.
Together, we will continue to deliver more transparency, more innovation, and more shared value to shape a sustainable future where business growth aligns with the wellbeing of people and the planet.
Together, we are delivering more — for today, for tomorrow and for generations to come.
Chairman
Chief Executive Officer