Fraser and Neave : F&N Sustainability Report 2019

January 06, 2020 at 07:48 am IST

BUILDING A SUSTAINABLE FUTURE

2019

SUSTAINABILITY REPORT

Contents

Sustainability at F&N	Delivering Value Through Innovation,	Managing Impacts and Conducting
02	Sustainability Highlights 2019	Human Capital Development & Social	Business in a Responsible Manner
03	Board Statement	Collaboration	50	Eco-efficiency
04	Message from Chairman of SDC	26	Driving Economic Value		52	Water Stewardship
06	About This Report		27	Economic Performance		54	Effluents and Waste
08	About F&N		28	Innovation		58	Packaging
10	F&N Business Model	34	Empowering Our People		60	Energy and Climate Change
12	Our Supply Chain		34	Talent Management	66	Responsible Supply Chain
13	Our Sustainability Approach		42	Market Presence		66	Sustainable Sourcing
23	Our Commitment	43	Enhancing Social Well-being	71	Safety and Well-being
			43	Creating Value for Society		71	Occupational Health and Safety
						77	Consumer Health and Safety
						82	Product and Service Labelling
					Appendix
					84	Performance Summary
					92	External Assurance Statement
					94	GRI Standard Content Index

In line with the Group's efforts towards greater environmental conservation, we have elected for an electronic transmission of our Annual Report and Sustainability Report.

The electronic version of this Annual Report is available on Fraser and Neave, Limited's website (fraserandneave.com/investor-relations/annual-reports).

Shareholders and other interested parties who wish to receive a printed copy may order it through the website (fraserandneave.com/contact-us/request-annual-report),e-mail (ir@fraserandneave.com) or telephone ((65) 6318 9393).

Our FY2019 Sustainability Report is only available in electronic version, and can be doenloaded at fraserandneave.com/investor-relations/corporate-sustainability.

Unless specifically stated otherwise, all figures in this Annual Report are quoted in Singapore Dollars.
3 Due to rounding, numbers in charts may not always add up to 100% or totals.

#GOPAPERLESS

BUILDING A SUSTAINABLE FUTURE

Building a

Sustainable

Future

We are a successful and responsible branded consumer enterprise, focused on delivering long-term sustainable growth to our stakeholders. We build great-tasting brands, with a diverse and differentiated portfolio that people love and trust.

Our business model, driven by our strategy, is simple, effective and profitable. It reflects the core competencies we have built over the years to support our purpose of enhancing the quality of life and contributing to a healthy future of our consumers. We are F&N.

Corporate Profile

Established in 1883, Fraser and Neave, Limited ("F&N") is a leading Southeast Asia Consumer Group with expertise and prominent standing in the Food & Beverage and Publishing & Printing industries. Leveraging its strengths in marketing and distribution, research and development, brands and financial management, F&N provides key resources and sets strategic directions for its subsidiary companies across both industries.

Listed on the Singapore Stock Exchange, F&N ranks as one of the most established and successful companies in the region with an impressive array of renowned brands that enjoy strong market leadership. F&N is present in 11 countries spanning Asia Pacific, Europe and the USA, and employs over 7,700 people worldwide.

Vision

To be a stable and sustainable Food & Beverage leader in the ASEAN region.

Mission

To be ASEAN's leading owner and provider of quality and innovative products that consumers choose and trust. To support our mission, we are guided firmly by our commitment to create value for our stakeholders by ensuring that our corporate actions positively impact the socio-economic and environmental factors.

Our Main Brands

02 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Sustainability Highlights 2019

13%

reduction in Lost Time Injury Frequency Rate

39%

reduction in Sugar Index (2004 - 2019)

208 MT

reduction in usage of PET resin packaging material

Healthier options

offered in 14 of 15 ready-to-drink beverage categories

70%

of our 2019 palm oil usage equivalent in Roundtable on Sustainable Palm Oil ("RSPO") Credits has been purchased

90%

of beverages packaging is recyclable

25%

reduction in Solid Waste Intensity Ratio*

31 and 11

training hours per employee for Executive and Non- Executive categories

External assurance

on selected F&N Health, Safety and Environment ("HSE") disclosures

* at the group-level, compared to FY2017

BUILDING A SUSTAINABLE FUTURE

Board Statement

OVERVIEW OF SUSTAINABILITY

The Board is pleased to present the Fraser and Neave, Limited ("F&N" or the "Group") third Sustainability Report in accordance with the internationally recognised Global Reporting Initiatives ("GRI") Standards (Core) which is in compliance with the Singapore Exchange's ("SGX") Listing Rules 711A and 711B. This report encapsulates the Group's overarching approach to sustainability, providing greater clarity to our stakeholders on material issues from Environmental, Social and Governance ("ESG") factors that may impact our business, as well as strategies that we have implemented to mitigate these risks. This year, we made great strides toward achieving ambitious 2020 sustainability goals. Each of the Group's commitments and targets are described in detail on pages 23 to 25 of this report. We remain committed to reducing our environmental impact, enhancing the Group's economic value, fostering mutually beneficial relationships with our communities and ensuring the health and safety of our staff.

As one of the leading consumer groups in Singapore and the region, we will continue to anchor sustainability in the Group and advance toward a sustainable circular economy.

SUSTAINABILITY GOVERNANCE The Board has overall responsibility for sustainability and incorporates sustainability issues as part of its strategic formulation. While it continues to take the lead in the Group's sustainability direction, the Board has tasked the Sustainability and Risk Management Committee ("SRMC") with responsibility for steering the Group's sustainability efforts. The SRMC is supported by the Sustainability Development Committee ("SDC"), which is chaired by Mr Lee Meng Tat, Chief Executive Officer, Non-AlcoholicBeverages and comprises business CEOs and senior executives across various functions.

The SDC supports the SRMC and monitors the progress of the Group's sustainability initiatives.

2020 AND BEYOND

Today, the responsibility to do even more than what we have done so far to transform F&N, sustainably, is even greater. As one of the leading consumer groups in Singapore and the region, we will continue to anchor sustainability in the Group and advance toward a sustainable circular economy.

04 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Message from Chairman of SDC

Mr Lee Meng Tat

Chairman of Sustainability

Development Committee

OVERVIEW OF 2019 SUSTAINABILITY REPORT

GRI 102-14

At F&N, sustainability is an integral part of our operations. F&N's vision is to be a stable and sustainable Food & Beverage ("F&B") leader in the ASEAN region, and in the following pages, we provide an insight into how F&N shows leadership for the sustainability challenges faced.

This report has been prepared in accordance with the GRI Standards (Core), which represent global best practice in sustainability reporting. By adhering to GRI Standards, we are able to demonstrate performance for F&N's material sustainability issues consistently over time. We have improved our data collection processes

by aligning and integrating them with the Thai Beverage Public Company Limited's ("ThaiBev") parameters.

ThaiBev has been a member of the DJSI World and DJSI Emerging Markets since 2016, and constantly works on improving their sustainability processes through learning and best practice sharing. They first became the Beverages industry leader in the RobecoSAM Corporate Sustainability Assessment in 2018 and continues to retain the title in 2019.

By benchmarking our sustainability processes and performance against the industry leader, we ensure that our processes and performance would further improve through best practices sharing and knowledge transfer.

BUILDING A SUSTAINABLE FUTURE

ACHIEVEMENTS AND PROGRESS IN 2019 For the first time this year, we have external verification on the sustainability data disclosed in this report. Lloyd's Register Quality Assurance ("LRQA") has conducted an external assurance on selected F&N HSE disclosures. The external assurance serves to ensure the accuracy of the sustainability data disclosed in this report. LRQA's assurance statement can be found on page 92 of this report.

Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices. This year, our subsidiary, Fraser & Neave Holdings Bhd ("F&NHB"), has been rated by FTSE4Good Bursa Malaysia Index ("F4GBM") with positive results, and included as part of the F4GBM. This indicates the strong ESG practices in place at F&NHB.

Consumer Health and Safety is our most important sustainability topic and has been key to the success of our business over the decades. I am glad that we continue to lead in this area. 90% of our ready-to-drink ("RTD") beverages sold today in Malaysia contain less than 5g of sugar per 100ml (below the sugar sweetened beverages excise duty threshold) and consumers have responded positively to the reformulated products. This ensures that we continue to provide healthier beverages, which do not compromise on taste, to our consumers. More information regarding other initiatives promoting good health and safety for our consumers can be located on page 77 of this report.

Waste generated by packaging has been increasingly in the spotlight globally. The material issue of Packaging has consequently been adjusted in the F&N materiality matrix to reflect its high importance to F&N. We are committed to sourcing sustainably and supporting efforts to reduce the usage of packaging materials. At the Singapore Packaging Agreement ("SPA") Awards 2019 held on 17 Jul 2019, F&N Foods Pte Ltd ("FNFS") had received a Merit Award for its initiative to reduce the packaging used while still maintaining the integrity and quality of the product. With support from the National Environment Agency ("NEA") in Singapore,

FNFS had also launched a nationwide recycling initiative, Recycle N Save, on 31 Oct 2019. 50 Smart Reverse Vending Machines ("RVM") are scheduled to be placed island-wide by March 2020 in a bid to encourage the public to recycle the packaging of their consumed beverages. With the launch of this initiative, F&N reinforces its commitment to play its part in protecting the environment by ensuring that its packaging is environmentally friendly, and at the same time, encouraging and rewarding consumers who recycle the cans and bottles. At Times Printers, packaging waste is also reduced by decreasing the amount of paper used for the packing of books and magazines through reusing the aluminium plate interleaf paper and the slit waste from the paper reel outer roll.

At the heart of our sustainability approach is Innovation. We encourage employee-driven innovation at dedicated conventions where teams submit ideas for continual improvement and showcase their projects to share learnings and knowledge to help improve the efficiency and product quality of F&N's manufacturing operations. Our employees at F&N Dairies Thailand ("F&NDT") initiated the award winning Gemba Kaizen project at Rojana Plant where the team re-looked the mechanism of the display box at the packing line and incorporated the Karakuri Kaizen mechanism (leveraging on gravitational energy). This innovation in production contributed towards significantly reducing the packing line's electricity usage and frequency of machine faults.

PLANS FOR 2020

2020 will be an exciting year for sustainability at F&N. The 2020 Group sustainability performance will be assessed against our 2020 Group sustainability targets. This outcome will impact the setting of the new 2025 Group sustainability targets, which are slated to commence in 2021. We will also engage a range of stakeholders to determine our new material topics and materiality matrix for 2021. We will continue to embed sustainability throughout our business, and lead by example for long-term value creation.

F&N appreciates your interest in our 2019 Sustainability Report and is very grateful for your continuous support.

06 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

About This Report

WELCOME TO THE F&N SUSTAINABILITY REPORT 2019

GRI 102-45; GRI 102-50 TO GRI 102-54This is our third annual Sustainability Report, in compliance with SGX. We are proud to continue our sustainability journey and reporting in alignment with the GRI Standards 'Core Option'. This year, to promote greater accountability and ownership, we further enhanced our reporting to include more disclosures on our most important sustainability topics.

Read together with our Annual Report, this Sustainability Report gives our stakeholders a comprehensive picture of how F&N integrates financial goals with social and environmental imperatives.

We are pleased to take this opportunity to share our commitments and progress in generating value for our stakeholders while conducting our business in an environmentally and socially responsible manner.

F&NHB, a subsidiary company, has been included in the F4GBM for the first time this year. Its inclusion in the Index demonstrated the Group's commitment to sound corporate governance and responsible environmental and social practices.

F&NHB has been independently assessed according to the FTSE4Good criteria and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance

of companies demonstrating strong ESG practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products.

Similar to last year, this report is organised in two primary focus, each with three 'core areas':

Delivering Value Through	1	Managing Our Impacts
Innovation, Human Capital	and Conducting
Development and Social	Business in a
Collaboration		Responsible Manner
a. Driving Economic Value	2	a. Eco-efficiency
b.Empowering Our People	b.Responsible Supply Chain

c. Enhancing Social Well-being

c. Safety and Well-being

BUILDING A SUSTAINABLE FUTURE

REPORTING PERIOD AND BASIS OF SCOPE The reporting covers the period from 1st October 2018 to 30th September 2019. Unless otherwise stated, the information contained in this report covers the Group's operations in Singapore, Malaysia and Thailand.

Specifically, for environmental data, the report covers the Group's significant operations in 13 manufacturing sites in Malaysia, Singapore and Thailand, excluding Yoke Food Industries Sdn. Bhd in Malaysia and Print Labs in Singapore.

Singapore	Malaysia	Thailand


		F&N Foods Ptd Ltd			Fraser & Neave Holdings Bhd		Fraser & Neave Holdings Bhd

			-	F&N Beverages Manufacturing		- F&N Dairies (Thailand)

						Sdn Bhd			Limited
		F&N Creameries (S) Pte. Ltd.	-	F&N Dairies Manufacturing

						Sdn Bhd
					-	F&N Beverages Marketing		F&N United Limited

		Times Publishing Group				Sdn Bhd
		-	Fraser & Neave (Malaya)
		- Times Printers Pte Ltd

					Sdn Bhd

			-	Borneo Springs Sdn Bhd

F&N Creameries (M) Sdn Bhd

Times Publishing Group

- Times Offset (Malaysia)

Sdn Bhd

ASSURANCE POLICY

F&N's policy is to align our reporting of non-financial information with the best and most up-to-date standards available at the beginning of our fiscal year. We believe in reporting reliable data and continuously strive to improve the quality of our non-financial disclosures.

For the first time this year, we have obtained external assurance on selected HSE data presented in this report. This aims to increase the confidence in our reporting practices and the quality of our disclosures. The assurance statement is included in page 92 of this report.

We value and appreciate all feedback to help make our future reports more relevant to our stakeholders. Please direct your comments and questions to:

Email:	sustainability@fngroup.com.sg
Phone number:	+65 6318 9393
Mail:	Sustainability Reporting Department
	438 Alexandra Road
	#07-00 Alexandra Point
	Singapore 119958

08 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

About F&N

WHO WE ARE

GRI 102-2 to 102-10

F&N originated more than a century ago from the spirited decisions of two enterprising young men, John Fraser and David Neave, who diversified from their printing business to pioneer the aerated water business in Southeast Asia ("SEA") in 1883.

The entrepreneurial spirit, embodied by our founders, remains in today's F&N. As a soft drink company, F&N seized the growth opportunities and ventured into the beer brewing business in 1931 in partnership with The Heineken Company and built a very successful beer empire in Asia Pacific - through its joint venture company, Asia Pacific Breweries Limited ("APB"). In 1959, it entered the Dairies business by forming a canned milk joint venture with Beatrice Foods of Chicago, and in 2007, it acquired Nestle's liquid canned milk business in Thailand, Malaysia, Singapore and Brunei, and accelerated its growth in the dairy business. Today, F&N is the largest canned milk producer in SEA. In 1985, the Group diversified into the Properties business. Starting with the redevelopment of its soft drinks and brewery sites in Singapore, F&N soon grew its property arm - Frasers Centrepoint Limited ("FCL", now known as Frasers Property Limited) to become one of the leading property companies in Singapore with multi-national businesses in residential, hospitality, retail, commercial and industrial properties.

There have been no significant changes to F&N's operations, ownership or supply chain during the past year. The Group's operating businesses are organised according to products and services, namely F&B Division (Non-Alcoholic and Beer) and Publishing & Printing Division.

F&N is headquartered in Singapore. We have 17 production facilities in Malaysia, Singapore, Thailand, China and Myanmar which are serving the needs of customers and consumers in the Asia Pacific region.

Founded in

1883

In 2012, F&N divested its equity stake in APB to realise a substantial value for shareholders. In 2014, the Group demerged FCL through a listing on the Singapore Stock Exchange, thereby transferring value to shareholders.

Today, F&N is a leading Asia Pacific Consumer Group with expertise and prominent standing in the F&B and Publishing & Printing industries. Leveraging its strengths in marketing and distribution, research and development ("R&D"), brands and financial management, as well as years of acquisition experience, the Group provides key resources and sets strategic directions for its subsidiary companies across both industries.

7,700+

employeesA

40+

brands

60+

manufacturing and

warehousing facilities in

Food & Beverage	Publishing &
Division	Printing Division

Non-Alcoholic Beer

countries

130+

DivisionDivision

CEO

export markets

640+

Mr LEEMeng Tat

Mr Edmond NEO

Mr SIEWPeng Yim

million consumers in SEA

	BUILDING A SUSTAINABLE FUTURE													09

CONTRIBUTION BY SEGMENT							EMPLOYEE BREAKDOWN
	$1,902m	$284m	6,600						1,100
	Revenue	Profit Before		Full-Time	Contract
									Interest & Taxation
		25%						3%			22%					28%


		61%						97%			45%					69%

		14%						3%			19%					0%


		0%					-3%			14%					3%


	$153m	$4,719m	2,400						5,300
	Attributable Profit Before	Total Assets		Executive	Non-Executive
	Fair Value Adjustment &
	Exceptional Items
						-3%						11%		29%					21%

				121%						73%			45%					50%


		4%							7%			14%					17%


		-22%				9%			12%					12%



	Legend:							Legend:
		Beverages		Dairies		Publishing & Printing		Others			Singapore		Malaysia	Thailand		Others

			E
C	D		F

		G
			H
		I	K

			J
			L

A USA

D Myanmar

F Hong Kong

H Vietnam1

J Singapore

L Indonesia

Legend:

Manufacturing Plants

Offices


B Chile		G Thailand


	E China		I Malaysia

				K Brunei

C India

Dairies Dairies

Soft Drinks Soft Drinks

Beer Beer

Publishing		Publishing

& Printing		& Printing

Note:

1. F&N owns an effective 20.01% stake in Vietnam Dairy Products Joint Stock Company

10 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

F&N Business Model

Our Vision

To be a stable and sustainable Food & Beverage leader in the ASEAN region

Our Strategy

Winning with Brands
Focusing resources on and drive the growth of brands that are in the medium- to high-growth segments and where F&N has a right to win
Winning with Innovation
Focusing on offering new products that appeal to our customers and consumers

Winning in Marketplace
Focusing on strengthening levers to execute a strong go-to-market strategy that reduces cost and risk
Winning with People
Focusing on attracting and retaining
the talent we need to achieve our growth priorities

	Inputs		Activity
	COMPONENTS OF
CAPITALS	VALUE CREATION	ACTIVITY	FOCUS AREAS

Communicating through stakeholder engagement

Understanding societal needs and stakeholder expectations

Creating Shared Value

Human

Financial

Intellectual

Tangible

Capitals

Community

Natural

7,700+ highly-qualified skilled people

Male 62%
Female 38%

Appropriate debt/ equity funding

Access to capital
Share capital $854m
Equity $3,332m
Debt capital $830m

Brands

More than 40 well-loved brands in 15 beverage categories
Internally developed systems and unique customer solutions and manufacturing processes

World-class manufacturing facilities

12 F&B manufacturing plants
4 printing plants

Relations with local community, customers, suppliers and wider stakeholders, driven through stakeholder engagement initiatives

Water, energy and land

Land & building $408m
Water consumption1
1,947 megalitres
Energy consumption1 1.3m megajoule

STRATEGIC PLANNING MODEL

DOWNSTREAM / UPSTREAM

Innovation

Raw material sourcing and processing

Production & Warehousing

Distribution

Marketing,

sales, customers

Consumers

Packaging disposal, reuse & recycle

People

Providing leadership and supporting management processes to ensure we have the right people to achieve our goals

Customers/

Consumers

Developing products and supporting initiatives that promote good health and nutrition

Maximise Returns

Maximising financial returns through operating savings, revenue enhancements and high asset utilisation

Grow Business

Focusing on business expansion, geographical diversification and brand

Optimise Asset

Optimising asset to meet or exceed specified rates of returns

Embrace

Sustainability

Principles

Developing business and social partnerships based on mutual value creation while maintaining a focus on ensuring the safety and well-being

of employees, and managing environmental and other impacts

Note:

Included water and energy consumed at the Group's significant operations in Malaysia, Singapore and Thailand

		Driving	Empowering	Enhancing social	Promoting
Core areas of sustainability:
	economic value	our people	well-being	eco-efficiency

BUILDING A SUSTAINABLE FUTURE

Our Businesses

Food & Beverage (Soft Drinks, Dairies, Beer)	Publishing & Printing	Other Strategic Investments
Offering innovative products to consumers	Enriching lives through knowledge	Delivering economic returns to
		stakeholders

Outputs

SUSTAINABILITY GOALS

					C	ENVIRONMENTAL

				MI
			O
		N			1.	Reduce solid waste intensity ratio by 5%
	O		UE
C
E			L
		A			2.	Reduce energy intensity ratio by 5%
	V
						3.	Reduce GHG emissions intensity ratio by 5%
						4.	RSPO Credits for 100% of palm oil usage
						5.	Reduce water use intensity ratio by 5%

		E		Read more from our Sustainability Report pages 50 to 70
		N
		V
		I
		R	SOCIAL AND PEOPLE
		O
		N	6.	At least one healthier choice option in all RTD product categories
O	2020	M
A	7.	Maintain sustainable value creation through innovation
E		E
L		N	8. Continue to provide outreach engagement programmes in core markets
	T
P
E	SUSTAINABILITY	L	9.	At least 16 and 10 training hours per year per Executive and
P			Non-Executive employees, respectively
	commitments
D		10. Zero lost time injury frequency
N
A
L				Read more from our Sustainability Report pages 28 to 49 and 71 to 82
A
I
C
O			ECONOMIC VALUE
S

11. Aim for sound earnings growth and increased corporate value through the proactive reshaping of our business models and portfolio

Read more from our Sustainability Report pages 28 to 33

VALUE CREATED

$1,902	$80	$56	60+
MILLION	MILLION	MILLION	New products
Revenue	Dividends	Taxes	launched
			in FY2019

$284	$278	$1,278	$211
MILLION	MILLION	MILLION	MILLION
PBIT	Salaries	Amount paid	Economic value
	and wages	to suppliers	retained

OUR STAKEHOLDERS

Value Shared Creating

expectations stakeholder and needs societal Understanding

engagement stakeholder through Communicating

Employees	Suppliers	Shareholders and	Distributors &	Consumers	Regulators	Communities
		Financial Investors	Trade Customers

Read more from our Sustainability Report

Responsible	Safety and	Corporate	Learning
supply chain	well-being	governance	organisation

12 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Supply Chain

The preparation, production and packaging of our beverages and consumables for printing requires a range of raw materials, equipment, and other goods and services. In FY2019, we engaged with over 4,500 global and local suppliers across our supply chain. F&N worked with manufacturers, wholesalers, retailers, importer/merchants, contractors, professional services providers, etc and spent a total of about $1.5 billion on products and services.

Sourcing

To provide the highest quality standards for our customers and consumers, we have also been seeking out and working with suppliers who meet high quality in standards and are socially, ethically and environmentally responsible. To ensure the sustainability of our business, we have risk management mechanisms in place to manage issues associated with the commodities upon which we rely.

Production

We have implemented a standardised safe production process, in accordance with international standards, throughout our operations. We strive for eco- efficient processes, in which we optimise the socio-economic value we create, while minimising our negative environmental and social impacts from all production stages.

Distribution

We have a fully integrated and extensive distribution system to ensure that our products are efficiently distributed to our customers and consumers. Our focus is to minimise the environmental and social impacts from transportation by managing energy usage while safeguarding the safety of our personnel and local communities. We also continuously innovate our processes and implement digital technologies to drive efficiency.

Marketing and Sales

Responsible marketing and sales practices are of great importance to F&N. We demonstrate societal responsibility by providing healthier product options and informative product labels. We also work with regulators and seek feedback from our customers on our products to improve our marketing practices.

Post-Consumption Packaging Management

We minimise the impact of post-consumer waste by delivering innovative and environmental-friendly packaging. We continuously seek out sustainable packaging that also meets the needs of our consumers. In addition to applying Circular Economy principles throughout F&N, we also promote environmental awareness in the communities we operate.

BUILDING A SUSTAINABLE FUTURE

Our Sustainability Approach

SUSTAINABILITY VISION AND FRAMEWORK

GRI 102-16; GRI 102-18; GRI 102-40; GRI 102-42 to GRI 102-44; GRI 102-46; GRI 102-47; GRI 102-49

It is our vision to create a financially, environmentally, and socially sustainable future for our business by:

Delivering value through innovation, human capital development and social collaboration; and

Managing our impacts and conducting business in a responsible manner.

Our sustainability framework comprises six core areas, under the

Delivering Value theme are:	Managing our Impacts theme are:
1)	Driving Economic Value;	1)	Eco-Efficiency;
2)	Empowering Our People; and	2)	Responsible Supply Chain; and
3)	Enhancing Social Well-Being.	3)	Safety and Well-Being.

Our Vision

Our Mission

To create a financially, environmentally,

and socially sustainable future for our business

To contribute to positive changes in society by improving the economic, environmental, and social well-being of the communities we operate in

Economic

Social

Environment

Achieve business

Enhance social

Mitigate environmental

Pillars

growth

being

impact

Delivering value through innovation,

Managing our impacts and

Sustainable

human capital development and

conducting business in a

Value

social collaboration

responsible manner

Creation

Economic

Empowering

Enhancing

Responsible

Safety and

Social

Eco-Efficiency

Supply

Value

Our People

Well-Being

Core

Well-Being

Chain

Areas

14 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Sustainability Approach

MANAGEMENT AND GOVERNANCE

STRUCTURE

F&N Board of Directors recognises the importance of sustainability in the Group's business operations and performance and oversees the overall strategic plan including considering sustainability and environmental issues as part of its strategic formulation.

The SRMC ensures sustainability risks and opportunities are considered at the highest level of F&N by providing strong support to the management team. The SRMC has the responsibility of steering and aligning company-wide sustainability strategy.

Headed by CEO Non-Alcoholic Beverages, and supported by senior personnel from key functions, regions and levels, the SDC supports the SRMC by providing general direction, monitoring and reporting the progress of F&N's sustainability projects.

The SDC is supported by the Sustainability Development Working Team, which consists of cross-functional representatives that takes on the various roles of: Sustainability Reporting Secretariat; Pillar Heads; Sustainability Initiative Champions; and Data Owners. Together, they monitor the progress of designated goals, drive initiatives at operational level, identify challenges in performance, and gather data for reporting.

In FY2019, the SRMC and SDC each convened three times on sustainability matters.

All F&N Directors and employees pledge to adhere to F&N's Code of Business Ethics & Conduct, which includes principles related to integrity, respect and excellence. The Code is reviewed with new employees as part of their induction programme, while updates are communicated to staff by email and are also made available on our intranet.

F&N Board

Sustainability and Risk

Management Committee

Sustainability

Development Committee

Sustainability Development

Working Team

Sustainability Reporting

Secretariat

Pillar Heads and Sustainability

Initiatives Champions

Sustainability Data Owners

SUSTAINABILITY DEVELOPMENT COMMITTEE

Lee Meng Tat (Chairman)

Chief Executive Officer, Non-Alcoholic Beverages, F&N

Lim Yew Hoe

Chief Executive Officer, F&NHB

Siew Peng Yim

Chief Executive Officer, Times Publishing Group

Hui Choon Kit

Chief Financial Officer & Group Company Secretary, F&N

Josephine Woo*

Senior Director, Group Human Capital, F&N

Lai Kah Shen

Director, Non-Alcoholic Beverages Finance, F&N

Dr Yap Peng Kang*

Senior Director, Manufacturing and Corporate R&D, F&N

Jennifer See

Managing Director, Singapore and YFI Malaysia, FNFS

Waradej Patpitak*

First Vice-President, Manufacturing, F&NHB

Celine Tan*

Director, Marketing (Beverages), F&N

* Pillar Heads in the Sustainability Development Working Team

BUILDING A SUSTAINABLE FUTURE

KEY STAKEHOLDERS' ENGAGEMENT

F&N's stakeholders include any individual or group who are impacted by or interested in our activities. We strive to build and maintain strong relationships, based on trust and respect, with all stakeholders and utilise various platforms where they can voice their opinions and suggestions, as shown in the table below. Information received via these channels are fed into our planning for sustainable value creation and reporting.

Engagement Channels	Typical Issues Raised	F&N Actions

Investment Community
• General meetings of	• Transparency in disclosure	Refer to:
Shareholders (AGM & EGM)	• Business/financial	• Section on Our Sustainability Approach
• Face-to-face meetings and	performance	(pg. 13-22)
conference calls	• Disclosure on relevant	• Section on Economic Performance
• Office/plant visits	information to shareholders	(pg. 27)
• Investor Day
• Website and SGXNET
announcements,
presentations, press
releases
• Annual reports
Employees
• Biennial employee	• Engagement with	Refer to:
engagement survey	employees	• Section on Economic Performance
• Robust compensation and	• Learning and development	(pg. 27)
benefits framework	opportunities	• Section on Talent Management
• Annual CEO town hall/	• Equitable rewards and	(pg. 34-41)
roadshow	recognition	• Section on Market Presence (pg. 42)
• Annual gatherings	• Safe and healthy work	• Section on Occupational Health and
• Sports tournament	environment	Safety (pg. 71-76)

Communique, iConnect (intranet), F&N Digest (biannual newsletter), email news highlights, quarterly CEO messages

Distributors and Trade Customers

• Annual customer meetings	• Latest consumer and	Refer to:
• Annual factory visits	shopper trends	• Section on Innovation (pg. 28-33)
• Annual business planning	• Product innovation	• Section on Consumer Health and Safety
• Business development	• Customer relationship	(pg. 77-81)
activities	management
• Joint supply chain meetings	• Shopper loyalty
• Quarterly business reviews	programmes
• Customer appreciation	• Improving customer service
events	level
	• Business practices and ethics
	• Competitive operational
	system
	• Efficient delivery systems

16 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Sustainability Approach

Engagement Channels	Typical Issues Raised	F&N Actions

Consumers
• Marketing and sales	• Product quality and safety	Refer to:
promotions	• Consumer health and safety	• Section on Innovation
• Brand communication	• Fair and reasonable product	(pg. 28-33)
through advertising	pricing	• Section on Consumer Health and Safety
• Social media interactions	• Social and community	(pg. 77-81)
• On-ground events and	engagement	• Section on Product and Service Labelling
activities	• Environment-friendly	(pg. 82-83)
• Dedicated consumer hotline	packaging
Suppliers
• Supplier meetings	• Fair and robust	Refer to:
• Annual audits	procurement system	• Section on Sustainable Sourcing
• Tender Management	• Support of local businesses	(pg. 66-70)
System	• Social and environmental
	responsibility
	• Ethics - anti bribery and
	corruption
Communities
• Collaborations and	• Consumer health and safety	Refer to:
partnerships	• Social and environmental	• Section on Consumer Health and Safety
• Outreach programmes	responsibility	(pg. 77-81)
• Meetings/dialogues with	• Greenhouse gas emissions	• Section on Product and Service Labelling
community representatives	• Job opportunities for locals	(pg. 82-83)
• Leadership programmes	• Promotion of good health	• Section on Creating Value for Society
• Sponsorship of sporting	and quality of life	(pg. 43-49)
events	• Skills development in sports	• Section on Market Presence (pg. 42)
• Donation of food and	and leadership	• Section on Water Stewardship (pg. 52-54)
beverages to the less	• Stimulating local economies	• Section on Effluents and Waste
privileged and elderly		(pg. 54-57)
		• Section on Packaging (pg. 58-60)
		• Section on Energy and Climate Change
		(pg. 60-65)
		• Section on Talent Management (pg. 34-41)
Regulators
• Active participation on	• Good governance	Refer to:
industry collaborations	• Fair and legal labour	• Section on Our Sustainability Approach
e.g. Singapore's Health	practices	(pg. 13-22)
Promotion Board;	• Safety at work	• Section on Consumer Health and Safety
Federation of Malaysian	• Compliance with laws and	(pg. 77-81)
Manufacturers	regulations	• Section on Product and Service Labelling
• Meetings with government	• Water and waste	(pg. 82-83)
agencies and statutory	management	• Section on Water Stewardship (pg. 52-54)
bodies	• Environment friendly	• Section on Effluents and Waste (pg. 54-57)
• Collaboration and	labelling and packaging	• Section on Packaging (pg. 58-60)
partnerships with local	• Greenhouse gas emissions	• Section on Energy and Climate Change
councils	• Recycling awareness	(pg. 60-65)
		• Section on Occupational Health and Safety
		(pg. 71-76)

BUILDING A SUSTAINABLE FUTURE

OUR MATERIAL ISSUES

We undertook our first materiality assessment in 2017 to assess our most important sustainability issues. This assessment was based on three steps: Identification; Prioritisation; and Validation.

Step 1

Identification

We conducted a comparative analysis of sustainability issues identified by global initiatives (such as the Sustainable Development Goals) and best practices of industry peers in the industry. These issues were discussed with the SDC to identify issues most material to F&N. We also surveyed our employees to obtain their views and seek further confirmation on the key issues. A list of 15 material issues were identified.

Step 3	Step 2
Validation	Prioritisation
We were able to develop a preliminary	To prioritise the material sustainability issues
materiality matrix based on the outcome	identified in Step 1, we engaged department
from Step 2. It was then validated through	heads, the C-suite, and the Board in a
engagements with the SDC and the Board.	materiality workshop. The workshop involved
	an in-depth discussion of each identified
	material sustainability issue, including the
	likelihood of impacts to our business and
	stakeholders, and the extent to which they
	would affect our sustainability. Each material
	issue was then plotted, based on importance,
	on a scale from moderate to high.

18 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Sustainability Approach

FY2019 MATERIALITY MATRIX

Following the initial materiality assessment in 2017, we review and update our 15 materiality issues every year to identify priority sustainability issues across our value chain.

Over the past year, public awareness on plastics waste have grown considerably, both globally and locally, and is now an issue of key importance

to business, governments and the public. The Singapore government has designated 2019 as the "Year Towards Zero Waste" while the Malaysian Government published a 'Roadmap Towards Zero Single-use Plastics 2018-2030'. At F&N, the SDC has also assessed that the 'Packaging' materiality topic is increasingly important to F&N's business and its stakeholders

and has shifted it to the upper right quadrant of the materiality matrix.

For a more holistic reporting, this year we had subsumed:

the 'Health and Nutrition' topic under
'Consumer Health and Safety' and 'Creating
Value for Society'; and
the 'Route Planning' topic under 'Energy
& Climate Change' to be aligned with the circular economy approach.

As at FY2019, the Group has now 13 materiality issues.

High

Consumer Health and Safety

Water Stewardship

Packaging Economic Performance

Occupational Health and Safety

Effluents and Waste

stakeholders

Energy and Climate Change

Creating Value for Society

Innovation

Importance to

Sustainable Sourcing

Market Presence

Talent Management

Product and Service Labelling

Moderate

Importance to business

High

By mapping our material issues to the United Nations Sustainable Development Goals ("UN SDGs"), we have aligned our business and sustainability goals to contribute to the UN SDGs. This allows us to focus on how our sustainability initiatives for each material issue translate towards fulfilling the respective UN SDGs.

F&N will conduct a materiality assessment exercise in 2020 to help ensure our strategy is focused in the right areas, to assess the changing sustainability landscape and to understand and prioritise the issues that matter to our business and our stakeholders.

BUILDING A SUSTAINABLE FUTURE

Material Issues and Our Commitments

	Main
	Sustainable
	Development
Material Topic	Goals
M01 Economic Performance

We are committed to creating direct economic value for our shareholders through the generation of profits and for our employees through stable and rewarding employment.

GRI 201-1 Economic Performance

M02 Innovation

We invest in product and process innovation to increase our product range and improve efficiency and productivity. Innovation is critical not only for long- term business success but also in response to growing concern about social and environmental issues.

M03 Sustainable Sourcing

We promote sustainable and responsible procurement and sourcing via a risk management and supplier selection that is integrated with ESG factors, as well as a focus towards local sourcing to contribute to local economic development when possible.

GRI 204-1 Procurement Practices

M04 Talent Management

We recruit the best talent, train them, and keep them motivated via career development goals and reviews.

GRI 401-1,401-2 Employment;

GRI 404-1,404-2 Training and Education

M05 Market Presence

We contribute to the economic development in the local communities in which we operate by hiring locally and providing our employees attractive salaries and comprehensive benefit packages.

Main Boundaries

Employees

Suppliers

Customers

Consumers

Investment Community

Communities

Regulators

GRI 202-2 Market Presence

20 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Sustainability Approach

Material Issues and Our Commitments

	Main
	Sustainable
	Development
Material Topic	Goals
M06 Occupational Health and Safety

Main Boundaries

Employees

Suppliers

Customers

Consumers

Investment Community

Communities

Regulators

Our health and safety management plan complies with relevant laws and regulations. It is supported by appropriate policies and programmes to safeguard the health and safety of our people at all times.

GRI 403-9,403-10 (2018) Occupational Health and Safety

M07 Consumer Health and Safety

We are committed to producing beverages of the highest quality that are safe, and which address health concerns. Our products comply with relevant standards across their entire life cycle. We promote the consumption of nutrition products, in line with consumer needs.

GRI 416-1,416-2 Customer Health and Safety

M08 Product and Labelling

We provide accessible and adequate information on our products and services, in line with relevant laws and regulations. This helps consumers make informed purchasing choices.

GRI 417-1,417-2 Marketing and Labelling

M09 Creating Value for Society

We strive to create a positive impact on local communities through social development projects focused on: strengthening vulnerable groups with education and basic needs; supporting sports and active lifestyles; promoting environmental consciousness; and spreading festive cheer.

GRI 413-1 Local Communities

BUILDING A SUSTAINABLE FUTURE

	Main
	Sustainable
	Development
Material Topic	Goals
M10 Water Stewardship

We seek to use water efficiently across the value chain and employ water resource risk management to ensure that our activities do not threaten water resources in the long-term for both our own operations and our local communities.

GRI 303-3,303-5 (2018) Water and

Effluents

M11 Effluents and Waste

We comply with international and national standards in effluents and waste management. These include actions to minimise waste in the production process.

GRI 303-4 (2018) Water and Effluents;

GRI 306-2 Effluents and Waste

M12 Energy and Climate Change

We curb our contribution to climate change by managing our Greenhouse gas ("GHG") emissions from our production processes and transport. This includes creating greater energy efficiencies in our operations and using as much renewable energy as possible.

GRI 302-1,302-3 Energy

GRI 305-1,305-2,305-4 Emissions

M13 Packaging

We use innovative packaging to meet consumers' demand and seek out innovative processes to reduce post- consumption waste.

Main Boundaries

Employees

Suppliers

Customers

Consumers

Investment Community

Communities

Regulators

22 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Sustainability Approach

CIRCULAR ECONOMY

A circular business model can be defined as the way an organisation creates, delivers and captures value with and within closed material loops and chains. F&N is committed to work towards a more circular economy by preserving the value of resources for as long as possible, and applying circular economy principles of:

prioritising renewable inputs;
keeping products and materials in use; and
recovering by-products and waste.

Our approach to managing materiality topics is guided by these principles. More than half of our materiality topics have links to circular economy:

Innovation: we creatively design new solutions for products and processes which contribute to resource efficiency and the prevention of waste;

Water Stewardship: we manage water use and recover and reuse water where possible;
Effluents and Waste: we minimise waste
(in production and post-consumption) and help to create by-products from the residual liquid and solid waste;
Packaging: we reduce raw materials needed and aim to ensure that packaging can be recycled, reused or composted;
Energy and Climate Change: we reduce our energy needs, use renewable and/or recover energy from our operations;
Sustainable Sourcing: we favour suppliers whose environmental practices adhere to circular economy principles; and
Creating Value for Society: we raise awareness, for example, through our School
Recycling Programmes.

These links are explored in more details in the chapters which follow.

LOGISTICS

	STORAGE
ORGANIC
FERTILISER	FARMING

FEED &

FERTILISERS

OTHER

SECTOR

INDUSTRIAL

SYMBIOSIS

WATER &

ENERGY RECOVERY

INNOVATIVE

PACKAGING

INGREDIENTS

FOOD AND DRINK MANUFACTURING

EDIBLE
FOOD WASTE
FOOD WASTE	FOOD
PREVENTION	SURPLUS	FOOD

BY PRODUCTS
	DONATION

CONSUMER

AWARENESS

FREEZING

& STORAGE

CONSUMERSINSTRUCTIONS

VARIETY OF

PORTION SIZES

RECYCLING & RECOVERY

BUILDING A SUSTAINABLE FUTURE

Our Commitment

PEOPLE	ENVIRONMENT	SOCIAL
• Occupational Health & Safety	•	Sustainable Sourcing	• Consumer Health & Safety
• Talent Management	•	Water Stewardship	• Innovation
	•	Effluents & Waste	• Creating Value for Society
	• Energy & Climate Change:
		Reduce energy intensity

• Energy & Climate Change: Reduce GHG emissions

As part of F&N's commitment to sustainability, we have established 10 key performance targets for the F&N Group, including Singapore, Malaysia and Thailand, based on the high priority material issues identified. F&N is on track to achieve these medium-term performance sustainability goals by 2020.

1. Key Material Issue	Sustainable Sourcing	2. Key Material Issue	Occupational Health and Safety

	Group Target for 2020	To purchase RSPO Credits for 100%		Group Target for 2020 To have zero Lost Time Injury
		palm oil usage by 2020			Frequency Rate by 2020
	Interim Target	Purchase RSPO Credits for 70% of
		projected palm oil usage by 2019

	Progress	We have achieved the interim target		Progress
		for 2019 by purchasing 21,400 RSPO
		Credits which accounts for about 70%
		of our 2019 palm oil usage.

Total Number of RSPO Credits Purchased

							Estimated
						100% of annual
						palm oil usage
							for 2020
			70% of annual	31,000

			palm oil usage	12,000
				for 2019

				21,400
		30% of annual		8,400

		palm oil usage
			for 2018				19,000

			8,600		13,000
3,050			3,600

	50		5,000
	3,000

2017			2018	2019			Target for
							2020

Group Lost Time Injury Frequency Rate

2.95	2.88

		2.58
			0.00
2017	2018	2019	Target for
			2020

Malaysia Thailand

24 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Our Commitment

3. Key Material Issue	Consumer Health and Safety

	Group Target for 2020 To introduce at least one healthier
			choice option in all our product
			categories by 2020

	Progress		We have healthier alternate products
			for 14 of the 15 (93%) product
			categories.
CHILLED /	•	Milk	All product
PASTEURIZED	•	Drinking/Eating Yoghurt	categories
		•	Fruit Juice	have at least
		•	Soya	one healthier
		•	Asian Soft Drinks	choice
AMBIENT	•	Isotonic	Product
		•	Water	categories
		•	Carbonated Soft Drinks	which do not
		•	Tea	have at least
		•	UHT & Sterilised Milk	one healthier
		•	UHT Soya	choice
		•	Juice	1. Energy
		•	Energy
		•	Asian Soft Drinks
		•	Frozen

4. Key Material Issue	Water Stewardship

Group Target for 2020	To reduce the water intensity ratio at
		our plants by 5% from 2017 by 2020

Progress

Group Water Intensity Ratio (m3/MT)

1.36		1.30	1.29

	0.80
2017	2018	2019	Target for
			2020

Water refers to the water consumed within F&N (Water Consumption = Water withdrawal - Water discharged)

5. Key Material Issue	Effluents and Waste	6. Key Material Issue	Energy and Climate Change

	Group Target for 2020	To reduce solid waste intensity ratio	Group Target for 2020	To reduce energy intensity ratio by
		by 5% from 2017 by 2020			5% from 2017 by 2020

Progress

Group Solid Waste Intensity Ratio (kg/MT)

5.88	5.58		5.58

		4.36
2017	2018	2019	Target for
			2020

Group Energy Intensity Ratio (MJ/MT)

1,079.38	1,080.17	1,090.67	1,025.29

2017	2018	2019	Target for
			2020

BUILDING A SUSTAINABLE FUTURE

7. Key Material Issue	Energy and Climate Change	8. Key Material Issue	Innovation

	Group Target for 2020 To reduce GHG emissions intensity		Group Target for 2020	To invest in product and process
		ratio by 5% from 2017 by 2020			innovation to increase our product
					range, and improve efficiency and
					productivity

	Progress			Progress	We have implemented many
					innovation projects to improve our
					product range and improve efficiency
	Group GHG Emissions Intensity Ratio (MT CO2e/MT)			and productivity.

0.112	0.114	0.115	Read more in pages 28-33.

			0.104
2017	2018	2019	Target for
			2020

9. Key Material Issue	Talent Management	10. Key Material Issue	Creating Value for Society

	Group Target for 2020	To provide an average of at least 16		Group Target for 2020	To provide outreach and engagement
		and 10 hours of training to			programmes across Singapore,
		employee categories, Executive			Malaysia and Thailand by exploring
		and Non-executive, respectively,			and implementing appropriate
		by 2020			outreach programmes to address
					community needs

	Progress			Progress	We have continued to provide
	Group Average Training Hour per Employee by			outreach and engagement
			programmes across Singapore,
	Employee Category				Malaysia and Thailand via several

programmes.

	10.96		11.39

			Read more in pages 43-49.
	8.39
			10.00
	30.22		29.97
	21.56		16.00

2017	2018	2019	Target for
Executive	Non-executive		2020

26 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

DELIVERING VALUE THROUGH INNOVATION, HUMAN CAPITAL DEVELOPMENT AND SOCIAL COLLABORATION

MATERIAL ISSUES

CONTRIBUTING TO SDGS

• M01 Economic Performance

• M02 Innovation

• M04 Talent Management

• M05 Market Presence

• M09 Creating Value for Society

Driving

Economic Value

F&N's success is based upon long-term value creation for our stakeholders. We achieve this by maintaining leadership in our core markets, and by leveraging innovative technologies and our employees' expertise to meet consumers' evolving demands.

The 'Economic Performance' section presents an overview of our economic performance, which provides us with a firm foundation to continue delivering the products that our customers love.

In the 'Innovation' section, we share highlights of R&D efforts to introduce new products and packaging, and improve upon existing products and processes, for our brands to stay relevant to consumers.

We become increasingly aware of how innovation can maximise the positive environmental and social impacts-and minimise negative impacts-of our products and processes each year. We implement initiatives to achieve this and have highlighted it in this section as well.

MATERIAL ISSUES COVERED

SDGS MAPPED TO

1. M01 Economic Performance

GRI 201-1 Economic Performance

2. M02 Innovation

BUILDING A SUSTAINABLE FUTURE

ECONOMIC PERFORMANCE

GRI 201-1

F&N generates economic wealth in a number of ways. A summary of our financial performance is provided below. For detailed financial results, please refer to the following sections in our FY2019 Annual Report:

Group Financial Highlights, pages 10 -11
Group Financial Statements, pages 99 -193

FY2019 Revenue	FY2018 Revenue	FY2017 Revenue
$1,902m	$1,835m	$1,898m
		24%	24%	25%


		37%	39%	38%


		34%	32%	31%


		5%	5%	6%

Legend:

Singapore Malaysia Thailand Others

Dividend ($M)

Cost of Sales ($M)

Employee Benefit Expenses1 ($M)

	80	1,237	1,252	1,278	279	275	278
65	65

FY	FY	FY		FY	FY	FY		FY	FY	FY
2017	2018	2019	2017	2018	2019	2017	2018	2019

Taxation ($M)			Profit After Tax ($M)			Economic Value Retained2 ($M)

56	1,326	303

		223	211

20
15		212

		181

FY	FY	FY	FY	FY	FY	FY	FY	FY
2017	2018	2019	2017	2018	2019	2017	2018	2019

Notes:

Employee Benefit Expenses comprises Staff Costs, Employee Shared Based Expenses Defined Contribution Plans and Defined Benefit Plans
Economic value retained = Direct economic value generated (Revenue) less Economic value distributed (Cost of Sales, Employee Benefit Expenses, Taxation, Dividend).
Community investments are not included

28 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Driving Economic Value

2020 Target:

To invest in product and process innovation to increase our product range and improve efficiency and productivity.

INNOVATION

Innovation is central to long-term value creation. We continuously evolve to deliver new and unique product offerings which cater to consumers' changing needs, for example, towards more beverage choices, flexibility and affordability. Through innovation, we also improve the operational efficiency of our manufacturing processes and better manage our impacts on the environment. The idea of the 'circular economy'-of decoupling our activities from the consumption of finite resources-is one

which drives us to make continual improvements. We continuously innovate for longer shelf life and better recyclability of our products.

Over the past year, we launched new products with lower sugar content and more convenient packaging to meet the diverse needs of our customers. We have also been implementing employee-driven innovative manufacturing processes that increased productivity and improved environmental performance.

OUR INNOVATIVE FRAMEWORK

PRIORITY

AREAS

Continuous improvement to deliver high-quality innovative beverage products to consumers.

More new products to expand our target consumer groups.

EXTERNAL

COLLABORATION

Collaborate with authorities such as Singapore's Health Promotion Board, Agri-Food & Veterinary Authority, Ministry of Health, Federation of Malaysian Manufacturers and Thailand's Food and Drug Administration to adhere to food safety regulations and support national health priorities.

Collaborate with research institutes to access cutting-edge research and scientific studies to discern the efficacy of our products.

INNOVATION

CULTURE

Develop products based on scientific research, consumer insights

and tastes relevant to evolving Asian lifestyles.

Constantly refine our products to meet the changing needs of consumers and ensure consistent delivery of good taste and the right nutritional values.

BUILDING A SUSTAINABLE FUTURE

Our Approach

Our R&D unit is based in Singapore and supported by teams in Malaysia and Thailand. The unit drives

innovation and supports ongoing renovation of our products to ensure consistent delivery of good tasting and healthy products to consumers.

Our R&D are guided by the following five principles:

Scientific advances		Regulatory
for application		compliance
in our processes		of our local and
Innovation & creation and products.	Technical	export business.	Quality products
of products and	developments		that meet food
packaging based	that support		safety standards.
on sensory science	quality
(a scientific method	improvement and
of measuring	cost optimisation.
and interpreting
consumers' response
to prototypes/
products based on
the senses of taste,
smell and touch).

In 2019, the F&N-NTU F&B Innovation Lab was opened in Singapore to develop innovative products and recipes. In line with F&N's commitment

to deliver sustainable business practices, this collaboration with Nanyang Technological University ("NTU") will see the furthering of our green efforts,

Singapore's Minister for Education, Ong Ye Kung (far right) learns more about NTU's research in food science and technology from Prof William Chen, Director of NTU Food Science and Technology Programme. Looking on is Mr Koh Poh Tiong, F&N Director and Adviser to the Board, and Chairman, Board Executive Committee. (Photo: NTU)

as well as catering to the health and nutritional needs of our consumers. The collaboration will foster circular economy research that will result in better food products, greener packaging and the conversion of spent product produced from food processing into valuable resources.

Consumer-Focused Innovation

At F&N, we continuously deliver new and unique product offerings to meet consumers' evolving needs. We strive to deliver our "Pure Enjoyment. Pure Goodness" promise to our consumers by offering: choices in different product categories, healthier options without compromising on taste and convenience through differentiation in packaging to cater to customers' needs.

We draw upon local knowledge to develop products that our consumers love. We launched several new products during FY2019, with each one undergoing comprehensive tests, before they even reach

the shelves, to ensure that they are safe for our consumers and of the desired quality.

30 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Driving Economic Value

New Products In FY2019

Singapore
1.	F&N FRUIT TREE FRESH	4.	FARMHOUSE Peppermint	8.	F&N Ice Cream Soda Zero	13.	F&N NUTRISOY High
	50% Less Sugar & Calories		Chocolate Flavoured Milk -		Sugar - Limited Edition		Calcium Reduced Sugar
	Mango		Limited Edition	9.	F&N Zappel Low Sugar -		Fresh Soya Milk with Purple
2.	F&N FRUIT TREE FRESH	5.	F&N MAGNOLIA Lo-FatHi-		Limited Edition		Sweet Potato - Limited
	50% Less Sugar & Calories		Cal Purple Taro Fresh Milk	10.	F&N SEASONS Pu-Erh		Edition
	Pink Guava		- Limited Edition		Chrysanthemum Tea -	14.	OISHI GOLD Genmaicha
3.	F&N FRUIT TREE FRESH	6.	F&N MAGNOLIA Plus		no added sugar		No sugar
	Wonders Kale, Spinach &		Fresh Milk with Kurma	11.	100PLUS Blackcurrant -	15.	OISHI GOLD Genmaicha
	Broccoli Juice Drink with	7.	F&N MAGNOLIA Summer		Limited Edition		Delight Low sugar
	Organic Chia Seeds		Peach Yoghurt Smoothie	12.	F&N NUTRISOY no sugar	16.	OISHI GOLD Kabusecha No
					added Fresh Soya Milk		Sugar

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Malaysia			Thailand
1.	F&N Lychee Pear	6.	F&N Sweetened	1.	F&N MAGNOLIA Lactose
2.	F&N SEASONS Apple		Condensed Milk Squeeze		Free Milk Product -
	Pomegranate Tea		Tube - Full cream,		Peppermint Brownie, Plain,
3.	F&N SEASONS		chocolate, strawberry		Vanilla White Choc
	Watermelon Lychee Tea	7.	F&N Sweetened	2.	TEAPOT Sweetened
4.	F&N SEASONS Pu-Erh		Condensed Milk Stix -		Creamer Squeeze Tube -
	Chrysanthemum Tea		Full cream, chocolate,		Caramel
5.	OYOSHI Sakura Strawberry		strawberry	3.	F&N MAGNOLIA Gingko
	Green Tea	8.	CARNATION Sweetened &		Plus Salted Caramel Milk
			Condensed Creamer

1	2	3	4	5	6	7	8	1	2	3

BUILDING A SUSTAINABLE FUTURE

Healthier Options

We invest heavily in the development of healthier products and in extending product options to best suit the expectations of different types of consumers. Over the past 15 years, we have made significant efforts to reduce the sugar content across our range of beverages: in 2004, our beverages contained an average 9.5g/100ml of sugar, and this has fell over 39% to 5.3g/100ml in 2019.

This year, we have successfully reformulated our product portfolio in Malaysia, aimed at improving the health and well-being of customers. Today, about 90% of our RTD beverages sold in Malaysia are healthier options (below the sugar sweetened beverages excise duty threshold in Malaysia).

More information on our healthier options can be found in the 'Consumer Health and Safety' chapter.

Increased Convenience

We differentiate our products' packaging to cater to the different needs of consumers. For example, due to the demand for greater convenience,

we launched the F&N Sweetened Condensed Milk Squeeze Tube and single serve 'Stix'. These are portable and convenient to use, as well as providing more suitable portion sizes, and hence contributes to consumer health and safety. These innovative products come in 3 flavours including full cream, strawberry and chocolate.

We are conscious of our responsibility to manage the environmental impacts associated with

our product packaging. We have implemented innovative processes to reduce the PET resin used in packaging of key products (as detailed on page 59), and we are continuously seeking solutions to go even further in reducing our post-consumption waste (as detailed on page 47).

Process Innovation

Our R&D and Manufacturing teams continuously seek out the most up-to-date technical and scientific advances to improve the efficiency of our operations while minimizing environmental impacts. Over the years, we have implemented innovative technologies to reduce post-consumption waste, automate processes to enhance efficiency and improve fleet efficiency and safety.

Future Ready Investments

This year, we have invested approximately $50 million in capital to elevate our product innovations and drive cost competitiveness. Process innovation projects implemented are described in F&NHB's Annual Report 2019, and include:

200 bpm drinking water line and warehouse at Kota Kinabalu Industrial Park, Sabah, Malaysia
New product development transformation programme, including reformulating products with lower sugar and new product packaging
Sophisticated Automated Storage Retrieval System ("ASRS") for our new warehouse at Shah Alam plant, Malaysia
Solar roofing to generate renewable energy at Rojana Plant, Thailand

Drawing on innovative technologies to produce Healthier and Better Products

Aseptic Cold-Filling Polyethylene Terephthalate ("PET") line
The Aseptic Cold-Filling PET line at the Shah Alam plant has been producing 100PLUS Active, F&N SEASONS, and OYOSHI since March 2018. Employing state-of-the-art technology, the new line allows the use
of thinner, lightweight containers, thereby reducing the use of PET resin packaging material by over 208 metric tonnes
in FY2019.
The new line is able to maintain a sterile environment within the aseptic chambers for 156 consecutive hours, meaning less production downtime and also allows us to bottle our products gently, with no additional thermal stress and no added preservatives.
This has accelerated our expansion into more product offerings, such as the 3 new healthier variants of F&N SEASONS - Watermelon Lychee Tea, Apple Pomegranate Tea and
Pu-Erh Chrysanthemum Tea.

32 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Driving Economic Value

New ASRS Warehouse
To further optimise operational and cost efficiency, we have invested about $26 million in an ASRS at our new integrated warehouse at Shah Alam plant. It will commence operation in Quarter 2 of FY2021.

The ASRS will manage the automated process of getting finished goods ready for delivery to market or to the distributor's warehouse. This system will improve operational efficiency and drive cost competitiveness.

ASRS PROCESS FLOW

Manufacturing Plants

ASRS

• Finished Goods (FG) stocks stored & managed by the WMS system

• Based on Sale Order FG stock will be packed and ready for delivery

• The packing includes bulk & loose packing

Distributors Warehouse /

Direct Delivery to Market

The ASRS has also been approved for F&NDT and will be implemented at the new Distribution Center at Rojana in Thailand. It will start operation in FY2021.

BUILDING A SUSTAINABLE FUTURE

Excel as One Convention ("EAO")

EAO (previously known as "Winning as One") is an annual convention held for the past

13 years in Thailand to allow cross-functional F&N teams to present their ideas to enhance our productivity, cost savings and/or product quality.

This year's convention was held in August 2019 with the theme of "Continuous Improvement

Innovation Excellence". Teams successfully identified solutions which resulted in cost savings or cost avoidance of THB18.44 million (approximately $800,000) per year.

This year's convention saw continuous improvement activities at the Small Group Activities, Kaizen and Quality Control Circle. New awards were given for the Innovation category and Lean category.

Employee-driven Innovation

We empower our employees to lead when it comes to innovation. Our employees actively participate in ThaiBev's Way of Work ("WOW") Awards, an annual award to promote the concept to improve work processes (Simplicity), enhance capabilities (Efficiency) and Competitiveness.

19 teams from F&NHB participated this year and won the 3rd runner-up award for an enterprise workflow improvement project and 1st runner up award for a project on 'Quality Excellence'.

Continuous Improvement Project

This year, our employees, at F&NDT, initiated a Gemba Kaizen project at the Rojana plant encouraging continuous improvements to enhance processes and reduce costs. Through this project, the team reviewed the mechanism of display boxes at the packing line and incorporated the Karakuzi Kaizen mechanism (leveraging gravitational energy). This initiative has reduced electricity consumption in the packing line and reduced the frequency of machine jams by almost 90% and was recognised by the Technology Promotion Association (Thailand-Japan) 2019 in the Thailand Kaizen Award 2019 with a gold medal.

Lean Production Management

We recognise that lean management is important in our production. Our employees at Rojana plant initiated a project to increase productivity of the Sweetened Beverage Creamer production line through effective packaging materials, storage and transportation. The team improved the process flow, including: designing and building a storage room near to the filling room to reduce travel distances for forklifts; reducing the lead time of changing foil roll to reduce downtime; and installing a roller conveyor machine to reduce workload. This project will help to achieve annual cost savings of THB13 million (approximately $600,000) and at the same time reduce the risk of accidents caused by forklifts.

Digital Efficiency

In Malaysia, we implemented an Enterprise Workflow project which digitised, simplified and integrated the processes of our sales team with the IT application. Through this project, sales colleagues can perform sales transactions with the web-based system anywhere and anytime.

This resulted in reducing the processing time from an average of 14 days to just a day (with an associated reduction of administration time of about 10 hours per month for our sales team). Paper usage for our sales team has also reduced by 70%.

34 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Empowering

Our People

Our people differentiate F&N from its peers and determine our success. We strive to create a stimulating work environment where talent is nurtured and rewarded, and employees are engaged, challenged and empowered to perform to their highest potential. We constantly look to hire and retain talent who will enable us to maintain our competitive edge and expand in the international market. F&N contributes to the UN SDG 8's target to achieve full and productive employment and decent work for all.

In this section, we describe the core elements of our Talent Management strategy, which is driven by our Human Capital Roadmap 2020 and 7 Modules for Strategic Human Capital Transformation.

MATERIAL ISSUES COVERED

M04 Talent Management
GRI 401-1,401-2 Employment
GRI 404-1,404-2 Training and Education
M05 Market Presence GRI 202-2Market Presence

SDGS MAPPED TO

TALENT MANAGEMENT

GRI 202-2; GRI 401-1; GRI 401-2; GRI 404-1; GRI 404-2

Our Approach

We recognise the importance of diversity in terms of cultural background and age, as well as having a good gender balance, to enrich the workplace with fresh perspectives that help us to meet our business objectives.

F&N strives to offer equal opportunities for all people without regard to race, gender, religion and any other factor unrelated to employment requirement. We comply strictly with prevailing legislation on employment rights in our countries of operation

including no hiring of minors. In Singapore, F&N employs older staff beyond the statutory requirement age of 62 as we support older employees who desire to find employment opportunities beyond retirement.

In terms of gender, while the number of female employees stands at about 38% of total employees, our positive approach to gender equity can be seen by women representing around 44% of total managerial positions.

As of 30 Sep 2019, F&N has over 7,700 employees. Most work full-time and about 85% are on a permanent contract. Around 30% of employees have been with F&N for over 10 years and in the past year our employee turnover rate was about 19%.

BUILDING A SUSTAINABLE FUTURE

Our Target:

Workforce Diversity

To provide an average of at least

16 and 10 hours of training to

employee categories, Executives

By Gender

and Non-executives, respectively,

62%

Employees

38%

by 2020

By Managerial

Positions

56%

Employees

44%

Male

Female

By Race

39%

23%

16%

Chinese

Malay

Indian

Burmese

Others

Bangladeshi

Thai

Nepalese

1. Graduates' Choice Award 2019

F&N was nominated as one of the top two Finalists (Category: Fast Moving Consumer Goods) in the Graduates' Choice Award 2019. This Award recognises organizations that have demonstrated "Exceptional Employer Branding" through excellence and distinction in graduate recruitment throughout Malaysia.

2. Asia's Best Employer Brand Award 2019

F&N has received this award under two categories

the "Top 100 Asia's Best Employer Brands 2019" for the company's strategies and the commitment by senior leadership towards Human Capital. Second, and for the first time, F&N received the "Excellence in HR through Technology" award, which reflects on the success of the Beverest Total Performance Management System ("TPMS").

Malaysia Best Employer Brand Awards 2019 F&NHB was recognised at the Malaysia Best Employer Brand Awards 2019. Criteria for the award included: providing employees with exemplary learning
and development opportunities; communicating distinctiveness in employee hiring, training & retention practices; regular communication with employees of all levels; and excellence in innovation.
HR Excellence Awards 2019

F&N were finalists under categories including "Excellence in CSR Strategy" and "Excellence in Innovative Use

of HR Tech". The Excellence in CSR Strategy honours organisations that are inspiring role models through their impactful CSR framework. The Excellence in Innovative Use of HR Tech, which F&N was awarded the Bronze Winner, emphasises the effective use of technology in reducing inefficiency and adding value to HR's functional excellence while reaping business benefits.

36 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Empowering Our People

Human Capital Roadmap and Strategy

F&N has a strategic plan to establish ourselves as a preferred employer. This is guided by our Human

Capital Roadmap to 2020, and specifically our 7 Modules for Strategic Human Capital Transformation. Each is explained in more details below.

Human Capital Roadmap

Clear Structure and Roles
We use the 'Beverest' TPMS to integrate our Human Capital processes and systems across the Group. This helps us to make sure that each employee is aware of the expectations and responsibilities for their role, their team and for the Group as a whole. Beverest TPMS is the foundation for a range of Human
Capital-related processes, from recruitment and on-boarding to career development.
Market-OrientedCompensation and Benefits
We pay employee competitive wages and offer competitive benefits. In addition, the Group carries out regular reviews to ensure that our remuneration packages

remain in line with its peers' and in harmony throughout the Group. Benefits provided to full-time employees include life insurance, health care, disability and invalidity coverage, parental leave, retirement provision, and stock ownership options (share-based incentive plans).

F&N's Human Capital policies go beyond standard labour regulations and statutory requirements.

This year, three unions in Malaysia have adopted performance bonus terms in their terms and conditions of employment. This is the start of extending the performance-based reward culture to our production employees.

BUILDING A SUSTAINABLE FUTURE

	Singapore
Life	Yes, by Job Level
Insurance
Health care	Yes, by staff category and/or
	Job Level
Disability	Yes, by Job Level
and
invalidity
coverage
Parental	Yes, to all eligible employees
leave	under the law
Retirement	No (as per statutory
provision	requirements)
Stock	Yes, for eligible executives only
ownership
Others	1. Company Product/Allowance
	(Non-Executives only)
	2. Long Service Awards
	3. Annual Membership
	Subscription to Professional
	Body (Executives Only)
	4. Mobile Line Subsidy
	(selected departments /
	employees only)

Malaysia	Thailand
Yes, by job grade	Yes, by job grade
Yes, by age, staff category and/or	Yes, by age, staff category
job grade	and/or job grade
Yes, by job grade	Yes, by job grade
Yes, to all eligible employees	Yes, to all eligible employees
under the law	under the law
Yes, for certain categories of	Yes, for certain categories of
employees	employees
Yes, by job grade	No
1. Car Loan (Executives only)	1. Provident Fund

Long Service Award
Annual Membership Subscription to Professional Body (Executives only)
Phone Subsidy (selected departments / employees only)
Festive Drinks

3. Recognition-based Performance Management

Employees collaborate with their supervisors to set SMART goals and KPIs for the year.

A Performance Assessment Review takes place twice a year to appraise outcomes and identify development opportunities.

Our policy is to support the provision of 'Limitless Opportunities' to employees from the moment they join the company and our approach supports Individual Development

Plans ("IDP"). There are four stages to our IDP approach:

Discuss career	Assess required
aspiration	competency
• Career Aspiration	• 360 Leadership
• Geography Mobility	Assessment
• Career Path & Career	• Functional Competency
Worksheet	Assessment

1 2

Dialogue with

Line managers

4 3

Implement and	Set development goal
follow-up the IDP	and identify learning
• Learning Management	intervention
System	• IDP
• IDP Review	• Blended Learning
	Catalogue (70:20:10)

38 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Empowering Our People

4. Holistic High Performer Retention and Development

We give every employee the opportunity to grow with the company and contribute to a high-performing, sustainable organisation. It is part of the culture at F&N that each employee is supported to implement their IDP, using the 70/20/10 Learning Model:
During the year, more than 1,000 employees attended a series of informal knowledge- sharing sessions (more than 1,900 hours) covering a wide range of topics, including: DIY Analytics; Industry 4.0; Skills Future Advice Workshop; Lunch Talks; Mindfulness; Nutrition
Weight Management; First Aid Awareness
Cardiopulmonary Resuscitation; Corporate Compliance; Tax; and Online Cyber Security
Training.

These sessions provide great opportunities to learn about a range of technical and nontechnical issues and strengthen relationships between colleagues throughout the company.

Other highlights included:

70/20/10 Learning Model

70%

from job

On-the-JobTraining
Challenging Project
Job Rotation
Cross Functional Job Training

20%

from people

Knowledge sharing
Coaching
Mentoring

10%

from Course

Training Program
Further Education
Self-Development
E-Learning

Programme	Focus	Employees Targeted
7 Habits of Highly Effective People	Self-management & interpersonal	Top, middle, junior management &
	skills	employees
Business Acumen	Driving for business performance	Top, middle, junior management &
		employees
Microsoft Office Competency	Microsoft Office Skills	Top, middle, junior management &
		employees
Education Assistance Programme	For various technical and	Non-unionised employees
	professional certification
Communications Skills	Leadership through deep listening	Top, middle, junior management
Presentation Skills	Impact business presentation skills	Top, middle, junior management &
		employees
Functional and Technical Training	Functional and technical skills	Manufacturing
Management Development	Leadership and management skills	Top & middle management
Programme
Future Leaders Development	Leadership and management skills	Junior management
Programme
Coaching Skills	Leadership through effective	Top & middle management
	coaching

GRI 404-2: Programmes for Upgrading Employees and Transition Assistance Programmes

BUILDING A SUSTAINABLE FUTURE

Proactive Succession and Workforce Planning
Through our annual Talent Review and
Succession Planning process, we identify employees who have the potential to become future leaders at F&N. Working alongside the Talent Management team, identified future leaders chart their individual career development pathways to ensure they are in the best position to succeed at a high level.
Talent Management is closely linked with succession planning, and in combination, provide us with a steady pipeline of future leaders who are able to support our business needs. Initiatives, including job rotations, transfers and project assignments, allow exposure to the various operations within the company.
Engaging Corporate Culture
F&N promotes a culture of engagement and inclusion. At the heart of this are our Global Values which emphasise that optimal outcomes happen when we work together. We saw an overall participation of about 230 employees at our Global Values sessions in Singapore this year, from workshops to townhall sessions.
Some of our main activities were a paper holding game, marshmallow and sticks challenge and balloon tower game. The objective was to encourage effective communication, teamwork and practical problem-solving skills, all of which are core principles behind Global Values.
Senior management interact with employees through various channels such as town hall meetings and briefings, CEO roadshow sessions, intranet updates and quarterly employee email newsletters.
Employees are encouraged to partake in sports and other physical activities through our in-house gym facilities, membership of internal sports clubs, and in employee badminton or golf tournaments. F&N involves employees
in a wide range of activities to promote togetherness and collaboration, such as the
'Fit & Nature' plogging activity and community outreach to spread festive cheer.
An engaging culture also means an active feedback platform. At F&NHB, employees are encouraged to share real-time feedback, ideas and suggestions directly with senior management via F&N Voice, a WhatsApp mobile messaging platform.

GLOBAL VALUES

And Key Behaviour Indicators

Our Global Values serve as a compass for our actions and

describe how we behave in our organisation

	Creating	Caring for
Collaboration	Values	Stakeholders
We leverage the	We are passionate	We embrace our
power of inherent	to apply new	stakeholders'
strengths and	ideas and grasp	perspectives with
diversity to create	opportunities to	good intent and right
inclusive synergies	create positive	mindset to bring
and commit to team	impacts	them into the long
goals		term sustainability
		together

40 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Empowering Our People

Caring for F&N Family Since 2003, F&NHB has been presenting the Chairman's Award to academically high-achievingchildren of employees. The award is

an employee appreciation initiative and provides motivation for their children to strive for excellence. About $66,000 in cash was awarded to about 100 recipients this financial year. To date, F&NHB has disbursed about $1.3 million to over 2,000 children through this programme.

7. Strategic Talent Acquisition and On-boarding

F&N strives to promote from within and maximise opportunities for the excellent talent already available to us. Where this is not possible, our Human Capital team ensures that we are able to recruit and welcome external applicants with abilities that match the Group's needs. Our interviewers are trained to ensure that the interview process is fair and effective.

Our Beverest TPMS is used to ensure that all new recruits benefit from a comprehensive and consistent on-boarding programme across the Group. This includes a mix of self-servee-learning and one-on-one support.

Our 'Future-ready Manager Programme' ensures that we replenish and grow our pool of future executives. We use a variety of assessment tools as part of a rigorous process to recruit the most suitable candidates. As soon as they join the team, the successful candidates begin a formal two-year programme to get a wide variety of experience.

Sourcing

Selection

Programme Structure

Talent Pool

Campus recruitment efforts
Past interns / contract staff
Outstanding F&N Scholarship recipients
Rigorous selection process
Multi-levelassessment approach
Duration: 2 years
2 Tracks:
- Generalist
- Specialist
Rotation after 1st year
Assign coach and mentor
Career Progression
Talent Mobility Programme
Development / Managerial Programme

BUILDING A SUSTAINABLE FUTURE

Our Performance Highlights

GRI 401-1: New Employee Hires and Employee Turnover

New Employee Hires

		Singapore by age
	27	<30	36
	50	30 - 50 years	30
	2	>50 years	4
		Malaysia by age
131		<30	48
	67	30 - 50 years	34
	7	>50 years	6
		Thailand by age
	89	<30	28
	62	30 - 50 years	43
	0	>50 years	0
Male	Female
Employee Turnover

		Singapore by age
	24	<30	19
	62	30 - 50 years	47
	27	>50 years	7
		Malaysia by age
	61	<30	36
	66	30 - 50 years	41
	4	>50 years	2
		Thailand by age
	63	<30	14
78		30 - 50 years	32
	7	>50 years	2
Male	Female

GRI 404-01: Average Hours of Training per Year per Employee

Average Hours of Training per Year per Employee by Category

	13.16	13.31

6.43	17.32	24.19
22.80
	33.65	40.77

30.99
	42.69
22.75		38.36
21.28	16.98	12.00

Singapore	Malaysia	Thailand

Executive Level Middle Management

Department Head/Supervisor

Senior Officer Officer Level

Average Hours of Training per Year per Employee by Gender

23.83 20.55

14.66
	16.39	19.72

9.86
Singapore	Malaysia	Thailand

Average Number of Training Hours for Male Employees Average Number of Training Hours for Female Employees

42 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Empowering Our People

MARKET PRESENCE

GRI 202-2

F&N's hiring practices are aligned with the interests of the local economies in which we operate, and we are determined to be the employer of choice and a role model for others. We are proud that 100% of our senior management in Singapore and Thailand and 91% of our senior management in Malaysia are hired from the local community. This helps to keep the value created by F&N within the local economy and ensures that we understand the local markets.

Our compensation packages have been standardised across the Group to ensure that the highest expectations are being embodied across our operations. These standards are strictly maintained and also reviewed frequently to allow for necessary adaptations with local circumstances.

F&N does not participate in nor condone forced or child labour, the use of intimidation or any manipulation of workers.

Senior Management Hired from Local Community

100%		100%
	91%
Singapore	Malaysia	Thailand

Notes:

Local employees are defined as people who are either born in or who have legal rights to reside permanently in our significant locations of operations.
Our significant locations of operation (for the business entities covered in this report are Singapore, Malaysia and Thailand.

BUILDING A SUSTAINABLE FUTURE

Enhancing Social

Well-being

At F&N, we believe that sustainable business development occurs when our communities develop alongside us. This firstly means that we ensure our operations minimise negative impacts on our surrounding communities, and it also means that we strategise our investments to create value where the strengths of our business intersect with the needs of society.

In the next section, we detailed our commitment and initiatives to strengthen vulnerable groups, promote environmental protection and support active lifestyles.

MATERIAL ISSUES COVERED

SDGS MAPPED TO

1. M09 Creating Value for Society

GRI 413-1 Local Communities

CREATING VALUE FOR SOCIETY

GRI 413-1

Our Approach

In each market that we operate, we undertake a number of long and short-term programmes that serve to create greater social equity. To that end, we have developed four main thematic areas where we focus our community endeavours:

1. Strengthening Vulnerable Groups

Inequality of wealth and opportunity is a major global challenge. Our consumers and employees come from all segments of society and inequality undermines the development and potential of both our business and our communities. To take leadership in tackling this issue, we have chosen to focus on

strengthening vulnerable groups such as underprivileged children. Through investing in educational programmes including both technical skills and soft skills, F&N works towards promoting a more equal society in terms of diversity, equal opportunities and social inclusion, where business and society together flourish.

Our Target:

We will continue to provide outreach and engagement programmes across Singapore, Malaysia and Thailand by exploring and implementing appropriate outreach programmes to address community needs.

44 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Enhancing Social Well-being

Promoting Environmental Consciousness
While companies have a critical role to play in minimizing environmental footprint, sustainable development means a partnership, and this includes behavioural changes at the individual level. Besides maintaining eco-efficiency in our operations (see pg. 76-94), we have taken the task of promoting environmental consciousness in our communities as another priority. As F&N continues to move towards a circular economy model of business, we are sharing lessons and also learning from communities about how to implement our ideas.
Spreading Festive Cheer
In addition to basic needs and environmental sustainability, our community development programme includes a priority related to our brand promise, which is delivering

Our Performance Highlights

GRI 413-1

"Pure Enjoyment. Pure Goodness" to all.

We believe that spreading festive cheers helps our communities connect with each other and strengthen relationships between different cultures. Here, we aim to promote diversity and fosters national unity in our communities.

4. Promoting Healthy Lifestyle & Nutrition

As a F&B business, F&N's products contribute to the health and well-being of our communities. Therefore, we consider it our obligation to facilitate responsible consumption and balanced lifestyles. This is mostly accomplished through the consumption of F&N products to maintain a healthy lifestyle in line with consumer needs. We also prioritise community investments that support sports and active lifestyles to better care for our consumers while also creating value for communities.

Theme	Activity	Timeline	Areas
Strengthening Vulnerable	F&N ICDL (International Computer	2011 - ongoing	Malaysia
Groups	Driving License) Annual Programme

	F&N E.L.I.T.E. (Empowering Lives	2011 - ongoing	Malaysia
	through Education) Programme

	F&N Leadership Programme	2015 - ongoing	Malaysia

	One Child One School Bag	2018	Malaysia
	Programme

	30 Hour Famine: Hunger Trials with	2019	Singapore
	World Vision

	Spark the Joy of Giving - hands of	2019	Singapore
	Hope

	MCE Book Donations to Woodland	2019	Singapore
	Rings Primary School

	Candle making Workshop with	2019	Singapore
	Elderly

	Assisi Fun Day 2019	2016 - Ongoing	Singapore

	F&N Fit & Nature Programme	2019	Malaysia

	F&N Save Our Seas Programme	2012 - ongoing	Malaysia

	Water Conservation Programme	2019	Thailand

Recycle N Save Initiative	2019 - Ongoing	Singapore

BUILDING A SUSTAINABLE FUTURE

Theme	Activity	Timeline	Areas
Sponsoring Festive	Chinese New Year Celebrations	2002 - ongoing	Malaysia
Celebrations
Hari Raya Celebration	2002 - ongoing	Malaysia


	Deepavali Celebration	2002 - ongoing	Malaysia

Supporting Sports and	Grassroots football	2011 - ongoing	Malaysia
Active Lifestyles	Grassroots badminton	2003 - ongoing	Malaysia

	Nurturing Golf Champions	2001 - ongoing	Malaysia
	Active Lifestyle Events	1983 - ongoing	Malaysia
	Standard Chartered Marathon 2018	2018 - ongoing	Singapore
	HSBC Rugby 7s	2016	- ongoing	Singapore
	National Steps Challenge	2016	- ongoing	Singapore

	SingTel-Singapore Cancer Society	2019	- Ongoing	Singapore
	2019 Race Against Cancer
	OCBC Cycle 2019	2019	- Ongoing	Singapore

1. Strengthening Vulnerable Groups

SINGAPORE: Candle Making with Lion Befrienders

24 F&N volunteers came together on 20th April 2019, with their family and friends to melt wax and attach wicks with 39 seniors from the Lions Befrienders Service Association through a candle making workshop. This initiative is part of F&N's CSR programme through which F&N engages with the community.

SINGAPORE: 30-Hour Famine Hunger Camp

Times Experience (S) Pte Ltd supported World Vision with its 30-Hour Famine Hunger Camp by sponsoring $3,000 worth of book prizes and gift vouchers.

This event focused on the connection between poverty and child protection issues in 2019, in line with World Vision's international campaign - 'It Takes A World to End Violence against Children'.

46 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Enhancing Social Well-being

1. Strengthening Vulnerable Groups

MALAYSIA: Empowering Youths with Basic Computer Skills F&NHB continued to provide youths from underprivileged backgrounds at Montfort Boys Town with opportunities

to develop their capabilities and reach their full potential, through the ICDL certification course.

The ICDL course, held since 2011, is part of the F&NHB IT Corner programme which was established in 2010. Designed for youth with different levels of digital literacy, the ICDL course helps beginners improve and fully grasp basic computer skills for common real-world application.

F&NHB has so far invested about $62,000 in the programme. To date, over 500 students from Montfort Boys Town have successfully graduated from the ICDL course and have found suitable placements in the working world.

MALAYSIA: Free Kindergarten & Tuition Classes

The collaboration between F&NHB and KCHF is part of the F&NHB E.L.I.T.E. programme which provides educational assistance to underprivileged children.

Aimed at empowering the children to take ownership of their own learning, the F&NHB E.L.I.T.E. programme offers marginalised children the opportunity to attend kindergarten and tuition centre for free. The programme promotes greater access to education and gives the children a chance with early education that helps to shape their academic and personal life trajectories.

To date, F&NHB has invested over $120,000 in the programme and a total of 487 children have benefited from the F&NHB E.L.I.T.E programme.

MALAYSIA: Leadership Programme for Underprivileged

Youth

Since 2015, F&NHB has been partnering with Leaderonomics, a social enterprise dedicated to transforming communities through leadership development. Our programme aims to nurture discipline, develop interpersonal skills, boost self- confidence and encourage teamwork among the young residents of Rumah Ilham.

This year, the boys from Rumah Ilham also had the chance to apply their leadership and basic business skills gained from the leadership programme when they set up a booth for two days to raise funds towards education fees for the Home's residents.

BUILDING A SUSTAINABLE FUTURE

2. Promoting Environmental Consciousness

SINGAPORE: Recycle N Save

A circular economy will be one in which businesses work alongside consumers to 'close the loop' of production.

The Recycle N Save initiative is a collaboration between the NEA of Singapore and F&N in a joint effort to encourage Singaporeans to adopt a more circular lifestyle by offering them the convenience of recycling used cans and bottles with the help of RVM. Singapore's Environment and Water Resources Minister, Masagos Zulkifli (center of photo) showed his support by gracing the launch event for the Recycle N Save initiative.

Launched on 31 Oct 2019, following favourable response from the public to the pilot initiative at Waterway Point in Punggol in January last year, the RVM has been updated. The new RVM can hold up to 600 aluminium cans and plastic bottles.

Plans are in place to progressively roll out 50 RVMs island- wide by March 2020.

MALAYSIA: School Recycling Programmes

Since 2006, F&NHB has been partnering with schools across Malaysia to educate the next generation on the importance of circular economy principles. F&NHB sponsors a recycling competition between schools nationwide, with prizes ranging from about $70 to $450. Over the past year, F&NHB has expanded this programme to 756 schools in 130 states of Malaysia, through a partnership with Solid Waste Corporation Management.

MALAYSIA: F&NHB Fit & Nature Programme

This year, F&NHB has kick-started its "Fit & Nature" initiative, to encourage Malaysians to lead an active lifestyle as well as to generate greater awareness on environmental protection. The inaugural session was held in collaboration with the local council, with F&NHB's "Fit & Nature" activity organised in conjunction with the official launch of the Terengganu drawbridge. The eco-friendly exercise programme involved plogging, a combination of jogging and collecting litter.

Two more sessions were organised and attracted overwhelming participation from employees. F&NHB employees took part in a wide range of tasks that not only encouraged employees to do their bit to tackle issues affecting the environment and learn about the latest F&N products, but also cultivated camaraderie amongst colleagues to build their morale at the workplace.

48 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Enhancing Social Well-being

2. Promoting Environmental Consciousness

THAILAND: Water Conservation Programme

As a F&B company, water is an essential resource for the production of our products. F&NDT has worked with the Government of Thailand to conduct a water conservation programme to return water back to nature. Themed 'Return Water to Nature', this is a circular economy initiative in action, and 350 employees worked together to build three check dams at Namtok Chet Sao Noi Saraburi located near the F&NDT Pak Chong factory.

3. Spreading Festive Cheer

MALAYSIA: Celebrating Festivals With Our Communities This year, our employees in Malaysia brought the joy of Chinese New Year to over 500 underprivileged children and senior citizens from 10 homes across Malaysia. During the visits, F&NHB contributed much-neededprovisions such as diapers, toiletries, F&N beverages and milk powder to the homes. Besides distributing red packets and mandarin oranges to the residents, F&NHB employees also treated them to packed lunches as both parties bonded together over food.

The Seratus Ikhlas, Setulus 100PLUS campaign, organised by F&NHB, in collaboration with Media Prima Television Networks, has spread Ramadan and the Hari Raya festive cheer to more than 3,000 people from underprivileged communities across Malaysia during the fasting month this year.

The one-month campaign saw 100PLUS Ambassadors and celebrities from the Seratus Ikhlas 100PLUS squad visiting homes of single mothers, the homeless and senior citizens to personally present Ramadan contributions, courtesy of F&NHB, and participate in gotong-royong and other community activities at a Tahfiz school, mosques and an old folks home.

To continue the spirit of giving and sharing during the fasting month, F&NHB also hosted break-fast sessions with children from different homes in Malaysia and contributed Raya clothes and 'duit raya' for the children.

BUILDING A SUSTAINABLE FUTURE

4. Supporting Sports and Active Lifestyles

SINGAPORE: OCBC Cycle 2019

In its 11th edition, the OCBC Cycle 2019 saw over 6,800 cyclists participating, and it was the first ever recipient of the Singapore Environment Council's Eco Event certification.

In support of the event's green efforts, 100PLUS deployed the manual can crusher and recycling bins beside the Site Hydration tent to encourage recycling of the paper cups and cans.

MALAYSIA: Grassroots Programmes

Since 2011, 100PLUS has sponsored the Ministry of Education-organised League known as Liga Kementerian Pendidikan Malaysia. The Football League encourages children from different parts of Malaysia to develop their football skills.

Since 2003, 100PLUS has been the official partner for all Badminton Association of Malaysia ("BAM") events and activities, including the Malaysian Open and Malaysian Masters. We have been supporting the BAM in organising the 100PLUS National Junior Circuit, a premier youth development competition to motivate young and rising players to excel in the game.

MALAYSIA: Official Partner for the National Sports Council As the official partner of National Sports Council, we supported Malaysian athletes during their trainings and competitions by providing 100PLUS to meet their hydration and energy needs. For athletes competing abroad in international tournaments, we also supported them with 100PLUS Active in sachet version, making it convenient for them to keep hydrated on their travels.

A proud advocate of local sports development, we recognise our local sports personalities through the annual Sportswriters Association of Malaysia-100PLUS Awards, and we have been the main sponsor of this award since 2006.

Active Lifestyle Events

F&N has continued our commitment to encourage an active lifestyle by supporting major runs, marathons and sports activities such as:

The initiatives are synonymous with the F&N brand essence that advocates an active lifestyle through simple physical activities that can be enjoyed anytime, anywhere, individually or with family and friends.

Great Eastern Women Run	15,000 runners	October 2018	Singapore
Putrajaya Night Marathon	15,000 runners	October 2018	Putrajaya
Penang Bridge International Marathon	20,000 runners	November 2018	Penang
Standard Chartered Singapore Marathon	40,000 runners	December 2018	Singapore
Income Eco Run	9,000 runners	April 2019	Singapore
Perlis Half Marathon	15,000 runners	April 2019	Perlis
Runout Pahang Marathon	10,000 runners	April 2019	Kuantan
Melaka Marathon	10,000 runners	July 2019	Melaka
7k Run for Charity	10,000 runners	July 2019	Kota Kinabalu
IJM Allianz Duo Highway Challenge	30,000 runners	July & August 2019	Kuala Lumpur
Straits Times Run	13,000 runners	September 2019	Singapore
Standard Chartered Kuala Lumpur Marathon	40,000 runners	September 2019	Kuala Lumpur
Sultan Mahmud International Bridge Run	18,000 runners	September 2019	Kuala Terengganu
Sungai Petani Half Marathon	10,000 runners	September 2019	Kedah
SGX Bull Charge	6,000 runners	November 2019	Singapore

50 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

MANAGING OUR IMPACTS AND CONDUCTING BUSINESS IN A RESPONSIBLE MANNER

MATERIAL ISSUES

CONTRIBUTING TO SDGS

• M10 Water Stewardship

• M11 Effluents and Waste

• M13 Packaging

• M12 Energy and Climate Change

M03 Sustainable Sourcing
M06 Occupational Health and Safety

• M07 Consumer Health and Safety

• M08 Product and Service Labelling

Eco-efficiency

Eco-efficiency refers to the act of maximising benefits and minimising ecological costs. As part of our materiality assessment, we identified four main issues in relation to our eco-efficiency efforts:

1	2	3	4
Water	Effluents and	Packaging	Energy and
Stewardship	Waste		Climate Change

We implement environmentally sustainable business practices in alignment with F&N's core values and the circular economy principles. This means that our approach is not only about minimizing resource inputs, but also about ensuring that outputs are useful wherever possible, either to F&N or to other organisations.

All employees are at all times guided by our Environmental, Safety and Health ("ESH") Policy.

BUILDING A SUSTAINABLE FUTURE

Our Environmental, Safety and Health Policy

All of our operations are guided by the following principles, to:

Comply with applicable ESH, legal and other requirements and also work with relevant statutory bodies to provide and maintain a safe, green working environment

Provide and maintain relevant training, instruction, information, resources and supervision to our employees about our commitments and encourage their involvement in ESH Programmes

Develop, review and carry out Environmental Impacts and Occupational Risk Assessments to take appropriate control measures for prevention of pollution, injury and illness

Ensure continual improvement in the ESH Management system and standards

Foster communication with shareholders, employees, customers, suppliers and local communities to protect the environment and to have hazard free condition

Strive for Zero Waste, Zero Pollution and Zero Accident through continual improvement in our management systems and processes

Our employees, business partners and stakeholder groups are aware of our ESH Policy and have given their support for our goals. These policies are reviewed regularly to ensure they are valid and up to date.

In the following pages, we will explain our targets, management approach and performance for each of our eco-efficiency areas of focus. We will show that eco-efficiency is not only just about reducing the environmental impacts of our operations, but also often makes good business sense for F&N.

During the year ended 30 September 2019, F&N did not receive any monetary fine or sanction for non-compliance with environmental laws or regulations.

MATERIAL ISSUES COVERED

M10 Water Stewardship
GRI 303-3,303-5 Water and Effluents
M11 Effluents and Waste GRI 306-1Effluents and Waste GRI 303-4Water and Effluents
M13 Packaging
M12 Energy and Climate Change
GRI 302-1,302-3 Energy
GRI 305-1,305-2,305-4 Emissions

SDGS MAPPED TO

52 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

Target:

To reduce the water intensity ratio at our plants by 5% from 2017 by 2020

WATER STEWARDSHIP	of water. A lack of effective water management
GRI 303-3 (2018); GRI 303-5 (2018)	can therefore have serious implications. We have
	a range of water assessment and action policies
Our Approach	that are applied across our facilities. This includes:
While none of our sites are in high water-stress	efficiency measures; the safe return of waste water
areas, many regions in Singapore, Thailand and	from our operations; and mitigating risk in supply.
Malaysia have faced floods in recent years and the
effects of climate change are expected to intensify	A localised approach to water management is
water stress in the future. Therefore, with the	essential. We look beyond our own operations
guidance of our ESH Policy, and in line with our	and act collectively with other stakeholders in
commitment to the circular economy principles, we	each of the regions in which we operate. We take
are committed to responsible water stewardship.	every opportunity and approach to reduce water
	consumption and meet our 2020 water intensity
Water is a fundamental element of our products	target and are carrying out various projects and
and our business is dependent on a reliable supply	initiatives to achieve this.

	Project highlights include:
THAILAND:	F&N has identified that water consumption can be	Water Reduction:
Zero Water Discharge	minimised by transferring water from water flushing to	> 17,000 m3/year
from Water Flushing to	buffer water tanks, which can be used to clean the inside
Buffer Water Tank	pipe of buffer water tank. (See diagram below.)	Cost Savings:
		> $69,000/year
MALAYSIA:	We have implemented a waste water recycling treatment	Water Reduction:
Water Recycling	system to reduce water consumption and increase plant	> 124,000 m3/year
Treatment System	efficiency. The water discharge will be further treated as
	make-up water for process cooling.	Cost Savings:
		> $66,000/year
MALAYSIA:	This year, to reduce water consumption, we have	Water Reduction:
IETS Water Recovery	recovered the final discharge of raw water from	> 43,000 m3/year
for IETS Operation and	production operation for usage in Industrial Effluent
Cooling Tower Operation	Treatment System ("IETS") and centralised cooling	Cost Savings:
	condenser.	about $32,000/year

BUILDING A SUSTAINABLE FUTURE

SINGAPORE:	At our FNFS Soya plant, water is used for batch soaking of	Water Reduction:
Water Saving at Soya	soya beans and continuous flushing of foreign materials in	1,647 m3/year
Plant	the separator.
		Cost Savings:
	Through tighter manual control of the water feeding	about $4,500/year
	process, such as installing a level alarm at the soya soaking
	tanks and level control valve at stone separator, water is
	prevented from overflowing.
SINGAPORE:	At our FNFS plant, Clean-in-place ("CIP") for transfer	Water Reduction:
Water reduction during	piping is carried out after production runs.	972 m3/year
Clean-in-Place process
	With new piping configurations to carry out CIP	Cost Savings:
	simultaneously, we can reduce the number of CIPs	about $2,600/year
	required from five times to just once or twice.

Flow diagram of Zero Discharge from Water Flushing to Buffer Water Tank
Powder Tipping
Dissolving
Buffer tank
Pasteurization
	Storage Tank
• USCM processing line
	Water
Powder Tipping	Buffer
Tank

Dissolving
Buffer tank
• SCM processing line

These projects demonstrate our commitment to the circular economy principles, with water being regarded as a precious resource as it can be used for multiple purposes. The recovery of water is

part of recognising the true value of water to our communities and of living responsibly to make sure that enough is available for everybody.

54 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

Our Performance Highlights

Over the past year, our water intensity increased. This is because of two additional production lines at Shah Alam plant, which offer significant benefits (e.g. reduction in packaging materials) but have higher water consumption than other lines.

None of our water withdrawal is from areas of water stress. We remain committed to achieving our

2020 water intensity reduction targets. Total water consumption (i.e. withdrawal minus discharges) during the year was about 1,940 megalitres ("Ml"). This is inclusive of water consumed during our trial runs. More information about effluents is included in the next chapter of this report.

	GRI 303-3 (2018) Water Withdrawal	GRI 303-5 (2018) Water Consumption

Water Intensity Ratio (m3/MT)	Freshwater Withdrawal by Source (MI)	Water Consumption (MI)

	1.44
1.08		1.01

Singapore	Malaysia	Thailand

	2,263.70
	844.55
	102.16
	1,317.00
		613.19
302.55		613.19
302.07

0.48
Singapore	Malaysia	Thailand

	1,164.11
		357.84
57.90
Singapore	Malaysia	Thailand

Total Surface Water

Total Ground Water

Total Third-Party Water

Note:	Notes:
1.	Water intensity ratio is calculated based on the total	1.	Water withdrawal is not from areas with high
	amount of water withdrawal (in cubic meter, m³) per		water stress.
	metric tonne of product (MT).	2.	All our withdrawn water is freshwater
			(< 1,000 mg/l Total Dissolved Solids).
*	Excluding trial run data

EFFLUENTS AND WASTE

GRI 303-4 (2018); GRI 306-2

Our Approach

The F&B manufacturing process involves the generation of both liquid (effluent) and solid wastes. We strive to reduce impacts from our operations, and this means complying with relevant regulations.

Under the guidance of our Environmental Policy and the principles of a circular economy, F&N explores

opportunities to review how 'waste' can be put to alternative uses. Our ultimate aim is that 'waste' is seen not as a problem, but as a source of new value for our supply chain or for another organisation's supply chain. Applying initiatives to promote a more circular economy for our operations and consumers enhances our ability to conserve natural resources and improve efficiency.

This chapter focusses on waste and effluents in our own operations. Please refer to the 'Packaging' (pg.58)

BUILDING A SUSTAINABLE FUTURE

Target:

To reduce solid waste intensity ratio by 5% from 2017 to 2020

Amount of industrial sludge from waste water treatment plant converted to fertiliser

THAILAND	587 MT
MALAYSIA	450 MT
TOTAL	1,037 MT

and 'Sustainable Sourcing' (pg.66) chapters for further insights about how F&N work throughout the value chain with suppliers and customers.

Each respective Business Unit has an approach to waste appropriate for their activities and hold regular departmental meetings where issues relating to waste are discussed. For example, at F&N Creameries (M) Sdn Bhd ("F&NCM") our Environment Monitoring Committee oversees the company's management of the environment with regards to waste management. At F&N United Limited ("F&NUL") in Thailand, an Organizational Sustainable Policy has been implemented with a commitment emphasising waste reduction and a 3R project (Reduce, Reuse, Recycle).

We believe that our aspiration for "zero discharge, zero waste and zero landfill" starts from each individual. As such, we organise activities to enhance environmental awareness among our employees through communication platforms such as the intranet, emails and internal recycling programmes as well as activities like 'plogging' and the F&NHB Go Green Carnival. At some sites, such as FNFS, workers are encouraged to post any suspicions of non-compliance, including photographic evidence, to a dedicated WhatsApp chat group.

F&N applies strict minimum standards for the quality of our effluent discharges, based on our Environmental Management System, and applies these standards throughout our operations. Waste water from our industrial effluent treatment plant in Malaysia is treated and repurposed for cleaning, toilet flushing, utilities and other functional purposes. Rejected water from our Thai water treatment plant and boiler is transferred to a pond for watering of grass and plants. This is an example of the circular economy principle of converting 'waste' to a resource.

Another example is our dairy manufacturing plants in Thailand and Malaysia. They are leading the way in our commitment towards achieving zero effluents and solid waste by converting 100% of industrial sludge from production into organic fertiliser. This is then distributed to local farmers. Over 1,000 MT of industrial sludge from our waste water treatment plants were converted into fertiliser this year.

Process flow of converting industrial sludge into

fertiliser at Thailand

Sludge from WWTP

		• Add microbes to eliminate odors.
30-90
	• Add Microbes for biodegradation.
minute
	• Add carbon sources and other ingredients.

Complete mix, adjust the C/N ratio accordingly, and make into a pile

		• Add specific microbes for dividing
Every
	biological substances.
week
	• Add other ingredients and adjust

		the humidity.

Turn over the pile to cool down and speed up the fermentation process

2-4 months

Bio-fertilizer

	low res (please provide photo)		low res (please provide photo)
Bio-Fertiliser	Bio-Fertiliser packing for
		farmers

56 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

F&NHB Go Green Programme

Following the success of 2018's F&NHB Go Green++, a nation-wide employee recycling programme in Malaysia, we continue to focus on packaging materials, to generate greater awareness of applying the 5Rs philosophy (Refuse, Reduce, Reuse, Repurpose, Recycle) among employees.

Our employees continued their enthusiasm in collecting recyclable packaging materials and we collected almost 24,000 kg of recyclables (an average of 12.5 kg per Malaysian employee) throughout the 6-month programme. There was also a significant increase in employees' knowledge on the 5R philosophy.

Total Collection for F&N Go Green++ (kg)

915		5,205


116		1,380


886		15,493

Tin Cans Tetrapak

Aluminum Cans PET Bottles

HDPE Carton Boxes

As part of the programme, the F&N Green Carnival was organised at our Kota Kinabalu plant this year. The activities for the carnival were designed to enhance 5R awareness amongst employees as well as share F&N's Sustainability journey in a fun way. The information and activities in the Green Carnival included:

Recycling tetra packaging by Tetra Pak Malaysia
Recycling industrial waste into useful materials by KPT Recycle Sdn Bhd
F&N's sustainability commitments and initiatives
Upcycling workshop using beverage cartons

Inspired by the success of this programme in Malaysia, F&NDT launched a "Circular Economy" project, to enhance the awareness of our employees and surrounding communities about aiming for zero solid waste. During the project launch, our employees visited schools around the Rojana plant to educate students about the circular economy. This include donating recycling bins to the schools.

Our Performance Highlights

We have a target to reduce solid waste intensity by 5% from 2017 to 2020. This year, we and achieved a 26% reduction in solid waste intensity as compared to 2017, putting us well above our target of 5%. The significant reduction was driven by the successful 'Waste to Wealth' programme at Pulau Indah plant and the 'War against Waste' programme in Thailand.

Solid Waste Intensity Ratio (kg/MT)

29.89
	3.41	2.68

Singapore	Malaysia	Thailand

Note:

1. Solid waste intensity ratio is calculated based on the total amount of waste generated (in kilogram, kg) per metric tonne of product (MT)

Close to 80% of the Group's solid waste was reused, recycled or recovered in 2019.

Solid Waste Recycled, Reused or Recovered

		86%
79%	78%
			63%
Group	Singapore	Malaysia	Thailand

BUILDING A SUSTAINABLE FUTURE

GRI 306-2: Waste by type and disposal method

Hazardous Waste by Disposal Method (kg)

	102,690.90
1,500.00	1,127.00
2,666.90

		7,245.00
		71,525.50
31,119.20
			17,037.20
31,119.20		11,681.50	3,867.20
		6,945.00	13,170.00
Singapore	Malaysia	Thailand

Non-hazardous Waste by Disposal Method (kg)

19,312,614.09

2,297,309.09

16,792.45

6,236.90 357,500.00

6,194,750.00

7,418,243.00	6,593,975.65
1,572,490.00

305,851.00		2,538,021.40
		937,650.00
2,182,542.00
		4,340.00
	3,846,050.00
3,357,360.00	714,140.00

	24,780.00	857,111.40

Singapore	Malaysia	Thailand

Reuse

Recovery, incl. energy recovery

Incineration

Reuse

Recycling

Composting (Self-Fertilizer)

Chemical Waste Water Treatment

Other Recycled/Reused Waste

Recovery, incl. energy recovery

Incineration

Other Disposal Waste

Landfill

Other Recycled/Reused Waste

Other Disposed Waste

Landfill

GRI 303-4 (2018) Water discharge

Freshwater Discharged by Source (MI)

Other Water Discharged by Source (MI)

	847.51
	165.36
	18.70
	3.95
		255.36
		255.36
27.76
27.76	659.50
Singapore	Malaysia	Thailand

	252.09
216.89
		0.00
Singapore	Malaysia	Thailand

Total Surface Water	Total Ground Water	Total Seawater		Total Seawater
Total Third-party Water Treatment and Usage			Total Third-party Water Treatment and Usage

Notes:

The data for Malaysia has been expanded to include our two water plants
The data for Thailand excludes the dairy plant in Pak Chong

58 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

PACKAGING

Our Approach

We strive to ensure our packaging protects the integrity of the contents and fulfils the visual and functional expectations of our consumers. There is increasing stakeholder awareness of the importance of environmentally-friendly packaging, especially

in relation to plastics. In Malaysia, the government recently released a 'Roadmap Towards Zero Single- Use Plastics 2018-2030' setting out their vision to phase out single-use plastics over the next decade. The Singapore Government released a Zero-Waste Masterplan in August 2019, which includes a circular economy approach to resource management. F&N is committed to supporting these efforts and will be reassessing our approach over the next year, as well as establishing relevant targets when we set new sustainability goals for 2025.

There is scope for innovation in packaging and we have been exploring it over the years (more details are included in the 'Innovation' chapter of this report). This has helped us reduce the volume of packaging material used as a percentage of product.

Circular economy principles are particularly important for our industry: the frequency of purchases can translate into a large amount of packaging, and so 'closing the loop' is a priority. We are fully committed to reducing F&B waste by increasing shelf life

and providing appropriate portion sizes, as well as increasing the recyclability of the primary and secondary packaging used in our products and sourcing more renewable packaging materials. One such initiative would be to progressively introduce rPET into the manufacturing of bottles used across our range of beverage products and we have since started with the 100PLUS 4G bottles.

We reduced our PET resin use in packaging materials for some of our products (including 100PLUS ACTIVE and F&N SEASONS and OYOSHI) by over 208 metric tonnes this year. On top of that, the products have a longer shelf-life resulting in less waste disposal. Currently, more than 90% of our beverages' packaging contains recyclable material.

We are also active in campaigns to encourage recycling; more information is included in the 'Creating Value for Society' chapter (pg.43-49) of this report.

Switching from TR Aluminium Board to TR PBU Board

FNFS has transitioned away from the use of aluminium foil for the drinks packaging of our F&N FRUIT TREE FRESH Sugarless Apple Juice. This has been achieved without compromising both the product or packaging quality and has saved approximately 430 kg of aluminium foil. This also contributes to our logistics and fuel efficiency as the overall weight per product has been reduced by 0.5 grams.

FNFS won a 'Merit Award' in July 2019 for this initiative as part of the annual SPA Awards which recognises signatories who have made notable efforts and achievements in reducing packaging waste.

BEFORE

AFTER

BUILDING A SUSTAINABLE FUTURE

Preform Reduction in PET Bottles

This project aims to reduce the preform for our 250ml 100PLUS PET Bottles. The quantity of packaging materials used would be reduced whilst maintaining the high product quality. This project was recently initiated, and we will be able to monitor the data from the beginning of 2020.

In Thailand, and as described in the earlier 'Innovation' chapter, this year, we also implemented a packaging reduction initiative for cartons of 2kg pouch sweetened beverage creamer. Through this initiative, the weight of paper carton has reduced by 90g, with savings of 150 metric tonnes of cartons and over $650,000 in cost savings per year.

Another initiative implemented this year was to increase the size and weight of shrink film roll and modify the support of auto pack to fit the larger roll. With this, the usage of shrink film has reduced by almost 22 metric tonnes per year.

Overall, our PET usage intensity has decreased by almost 20% between 2004 and 2019.

18gm

Preform

250ml

15gm

Preform

Packaging Footprint for Total PET Beverages*

FY17/18 to FY18/19 packaging index reduction from 14.4% to 19.8%

	39.0								19.8%								500.0
		37.4	37.5	37.9			37.2											450.0
	37.0		37.0	36.7	37.0	36.8

																400.0

PET Material Usage (g/L)	35.0									35.2	34.7	34.6						350.0

															L) (Million Product
33.0																	300.0
													32.3
														32.0		250.0
												31.5	31.4
31.0
																200.0
																30.0
29.0																	150.0


																		100.0
	27.0
																		50.0
	25.0																	0.0
		FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY
		03/04 04/05 05/06 06/07 07/08 08/09	09/10	10/11	11/12	12/13	13/14	14/15	15/16	16/17	17/18	18/19
	Total PET Usage	Total Product

Notes:

Total PET Beverage includes: Isotonic, F&N, CSD, ASD, Water and Aseptic PET packaging for 250ml, 350ml, 380ml, 400ml, 500ml, 600ml, 1L, 1.2L and 1.5L

1. 19.8% reduction from FY03/04 to FY18/19, compared to 14.4% reduction from last reporting (FY03/04 to FY17/18)

60 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

Our Performance Highlights

In Singapore, just over 2,000 metric tonnes of packaging material were used during the year.

In Malaysia, the amounts were over 61,000 metric tonnes, and in Thailand it was over 44,000 metric tonnes.

Target:

To reduce energy intensity ratio by 5% from 2017 to 2020

To reduce GHG emissions intensity ratio by 5% from 2017 to 2020

Packaging Intensity Ratio (MT of Packaging Material/MT of Finished Product)

0.13

0.08

0.05

Singapore Malaysia Thailand

Notes:

Packaging intensity ratio is calculated based on the amount of packaging materials used (in metric tonne, MT) per metric tonne of product
Packaging Intensity Ratio for Thailand does not include F&NUL as they do not account for their packaging material by weight but by pcs

ENERGY AND CLIMATE CHANGE

GRI 302-1;302-3;305-1;305-2;305-4

Our Approach

Climate change is a defining global challenge of the 21st century. As one of the main priorities for our 2020 Vision, F&N is committed to reduce our energy consumption and GHG emissions intensity ratio. As part of our efforts, we also feel the responsibility to help minimise carbon footprints across our value chain, ranging from manufacturing, packaging, storage and logistics, to end use and disposal.

Singapore has pledged to reduce GHG emissions intensity ratio by 36% by 2030, compared with 2005 levels and to reach peak GHG emissions by 2030. Malaysia's government has targeted a 45% reduction in GHG emissions intensity ratio by 2030 from a 2005 baseline, and Thailand has a reduction target of 30% by 2036 from a 2010 baseline.

F&N has an initial target: between 2017 and 2020, we aim to reduce energy and GHG emissions intensity ratios by 5%. F&N will review and look into setting longer-term targets beyond 2020 in due course.

As with the other eco-efficiency topics, the framework for our approach is our Energy Management Policy.

Our Energy Management Policy

All our operations are guided by the following principles, to:

fulfil and enhance the energy management system as energy conservation is one important part of our operations
well manage and utilise energy conservation technology and best practices as part of our continuous improvement
implement and improve energy management system to comply with relevant laws and regulations
conduct energy improvement programme to optimise business operations
promote, support and manage energy conservation efficiently

Our employees, business partners and stakeholder groups are all aware of our Management Policy and have given their support for our goals. We regularly review the policy to ensure that it is valid and up to date.

BUILDING A SUSTAINABLE FUTURE

Operations processes, including manufacturing, storage and transportation, require energy. We have applied a range of initiatives, based on circular economy principles, to improve our energy performance. Our energy and climate

change related activities are broken down into five priority areas. The first four relate to minimising our own direct and indirect impacts, and the final one relates to how we are adapting to climate change risks:

	Energy
	efficiency in		Renewable
	our operations
		energy

			sourcing
			and
		1	generation
	5	2
Operations'

exposure
to climate	4		3
change risks

Reducing carbon in our value chain

Route planning

1. Energy Efficiency in Our Operations

Improving energy efficiency in our operations makes business sense just as much as it helps to reduce our environmental impacts. Energy efficiency contributes to a circular economy by limiting the resources needed to produce valuable goods and services.

As part of our innovative approach across the group, we have a range of initiatives that include: process solutions to eradicate wasted energy (for example installation of Variable Speed Drives); and behavioural solutions to reinforce a culture of good practice throughout our workforce (for example daily monitoring of energy consumption):

MALAYSIA:	Through installation of Variable Speed Drives ("VSD"), the	Energy Saving:
VSD for Cooling Tower	motor speed of cooling tower fan is modulated based on	>330,000MJ/year
	an analogue input from a temperature sensing device.
		Cost Savings:
		About $11,000/year

62 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

MALAYSIA:	The installation of IFC for Main Air Compressor helped in	Energy Saving:
Intelligent Flow	stabilising the pressure of compressed air and avoiding	>360,000MJ/year
Controller ("IFC") for	the pressure fluctuation. This elimination of fluctuation is
Main Air Compressor	estimated to save up to 5% of electricity usage.	Cost Savings:
		About $13,000/year
SINGAPORE:	Replacing old fleet of air compressors with newer and	Energy Saving:
Air Compressor Unit	technologically advanced air compressor units are more	> 1,000,000kWh/year
replacement	energy efficient. It is estimated that this project has
	resulted in an energy saving of about 1 million kWh/year	Cost Savings:
	(equivalent to about 1,000 MT CO2).	About $10,000/year

2. Renewable Energy Sourcing and Generation

Energy efficiency can make a significant contribution. However, we must also recognise that in order to ultimately decouple our activities from GHG emissions, we should look into transitioning from hydrocarbon-based energy to renewable energy. Renewable inputs are

an essential part of the transition to a circular

economy, and F&N is committed to be a part of this transition. We have begun by sourcing more of our electricity from low-carbon and renewable sources. Further to this, we are also exploring options to generate our own renewable energy at our sites.

THAILAND:	A proposal to install a solar PV system at our Rojana	Plant Capacity:
Solar Energy Proposal	plant will provide an alternative source of energy for our	999 kWp
	operations. This will enable F&NDT to significantly reduce	(1,300 MWh)/year
	energy consumption from the grid and utilise renewable
	energy for its operations. We will expand and model this	Cost Savings:
	onto other plants after the successful implementation at	About $285,000/year
	Rojana plant.

BUILDING A SUSTAINABLE FUTURE

3. Reducing Carbon in Our Value Chain

In addition to making improvements to our own operations through energy efficiency and renewable energy use, F&N is looking into sharing best practices and encouraging improvements along our full value chain. We are still at the beginning of

these efforts, but we understand it is important to support our business partners and customers to reduce their own GHG emission impacts. As we do this, we will look for opportunities for collaborations for circular economy initiatives.

Optimal route planning can help us to reduce costs and be more environmentally friendly. We have therefore streamlined our distribution networks over the past few years.

Our Malaysia operations made significant progress in recent years by switching from single-deck trucks to double-decker trucks. We have also increased the product load per truck deck thereby reducing the number of trips. For FY2019, we have an estimated cost savings of about $100,000.

We have implemented the Oracle Transport Management ("OTM") system that has an efficient control over the overall logistics operations in Malaysia which comprises in-bound,out-bound and export of containers. Our Distribution team now has full visibility of all the transportation activities throughout the entire supply chain. With this web-based system, we are able to improve our operational efficiency through:

Optimised operational planning - our team can plan and optimise shipments based on cost, service level and asset utilisation; and

4. Route Planning

Improved fleet management - our team can better manage the fleets by transporters, from driver and equipment assignment, dispatch, asset tracking, event management and supplier payment. With the GPS integration into OTM, our planners can track the trucks at any time to ensure safety and timely arrival at destinations.

F&NHB has put in capital investments of more than $260 million since 2014 on new production lines and warehouses across our production facilities in various locations. This decentralization strategy also means that our manufacturing and warehouse operations are closer, resulting in shorter routes to market and lower carbon emissions from logistics.

About $26 million has also been invested in a sophisticated ASRS at our new integrated warehouse at Shah Alam plant. This will eliminate

the need for forklifts thus further reducing the carbon footprint of our warehouse operations. Read more about the ASRS in page 32 of this report.

64 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Eco-efficiency

5. Operations' Exposure to Climate Change Risk

F&N's operations and supply chain face increasing impacts from climate change. This includes impacts from rising sea levels, extreme temperatures, farming shortages and water availability. We adhere to regulations to reduce our environmental footprint, actively working towards reducing climate

change. At F&NHB, climate change risks are also monitored and managed as part of their Enterprise Risk Management process. Robust incident escalation procedures and response plans are part of their BCM.

Our Performance Highlights

GRI 302-1: Energy Consumption within the Organisation

Energy Consumption By F&N ('000 MJ)

	788,555.86
	294,156.94
	2.66
		384,202.28
		3,008.04
		130,618.43
153,507.61	494,396.26

79,023.86		250,575.81
21.15
74,462.60
Singapore	Malaysia	Thailand

Excluding trial run data

Non-renewable fuels (nuclear fuels, coal, oil, natural gas, etc.) purchased or consumed

Total renewable energy (wind, solar, biomass, hydroeletric, geothermal, etc.) purchased or generated Non-renewable eletricity purchased

Steam/heating/cooling and other energy (non-renewable) purchased

Notes:

There is no electricity, heating, cooling and steam sold
The data on natural gas and electricity consumption is collected through meter readings and converted to MJ through standard conversion values
Natural gas, diesel, fuel oil, liquefied petroleum gas and electricity are the non-renewable fuel types consumed within the organisation
Self-producedsolar energy and biodiesel are the renewable fuel types consumed within the organisation

BUILDING A SUSTAINABLE FUTURE

GRI 302-3: Energy Intensity		GRI 305-1: Direct (Scope 1) GHG Emissions (CO2e)

Energy Intensity Ratio (MJ/MT)		GHG Scope 1 Emissions (MT CO2e)

2,861.42				31,490.60
					15,864.09
	974.84	1,086.98

			5,488.44
Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand
* Excluding trial run data			* Excluding trial run data

Notes:	Notes:
1.	Energy intensity ratio is calculated based on the total amount of energy	1.	CO2e emissions estimated based on the conversion factors from 2006 IPCC
	consumed (in megajoule, MJ) per metric tonne of product (MT)			Guidelines for National Greenhouse Gas Inventories
2.	Energy intensity ratio is for energy consumed within F&N only	2.	Only CO2 is included in the calculation of the Direct (Scope 1) GHG emissions
3.	Fuel, electricity and steam are included in the energy intensity ratio	3.	There is no biogenic CO2 emissions generated from the combustion of biomass
		4.	The base year for the calculations is 2017. It was chosen as that was the first year
				F&N adopted the GRI sustainability reporting framework
		5.	The Global Warming Potential ("GWP") value for a time horizon of 100 years
				based on the Intergovernmental Panel on Climate Change ("IPCC") Fifth
				Assessment Report: Working Group I Report "Climate Change 2013: The Physical
				Science Basis" (chapter 8) is used in the calculation
		6.	Operational control method is used for the consolidation approach of emissions
GRI 305-2: Indirect (Scope 2) GHG Emissions (CO2e)	GRI 305-4: Greenhouse Gas (GHG) Emissions Intensity

GHG Scope 2 Emissions (MT CO2e)	GHG Emissions Intensity Ratio (MT CO2e/MT)

	56,479.44		0.274
		20,842.62		0.109	0.104

9,201.88
Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand
* Excluding trial run data			* Excluding trial run data

Notes:

CO2e emissions estimated based on the conversion factor from IGES List of Grid Emission Factors v10.6 and using the location-based method
Only CO2 is included in the calculation of the Energy indirect (Scope 2) GHG emissions
The base year for the calculations is 2017. It was chosen as that was the first year
F&N adopted the GRI sustainability reporting framework
The GWP value for a time horizon of 100 years based on the IPCC Fifth
Assessment Report: Working Group I Report "Climate Change 2013: The Physical Science Basis" (chapter 8) is used in the calculation
Operational control method is used for the consolidation approach of emissions

Notes:

GHG emissions intensity ratio is calculated based on the total amount of CO2e generated (in metric tonne, MT) per metric ton of product (MT)
Direct (scope 1) and energy indirect (scope 2) is included in the GHG emissions intensity ratio
Only CO2 is included in the calculation of the GHG emissions intensity ratio

66 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Responsible

Supply Chain

As a market-leading F&B company, we constantly work with our business partners, suppliers and vendors to deliver mutually sustainable solutions that create long lasting value. We also lead by example, encouraging others to improve sustainability performance throughout their supply chain.

The following chapter outlines some of the ways we work with and influence other companies. We are committed to Sustainable Sourcing and the next chapter explains our process for this.

MATERIAL ISSUES COVERED

SDGS MAPPED TO

1. M03 Sustainable Sourcing

GRI 204-1 Procurement Practices

Target:

To purchase RSPO Credits for 100% palm oil usage by 2020

SUSTAINABLE SOURCING

GRI 204-1

Our target for 'Sustainable Sourcing' specifically relates to palm oil. Although this represents a relatively minor proportion of our expenditure (<3% of total expenditure on products and services),

it has potentially major indirect impacts as irresponsible palm oil cultivation has caused-and continues to cause-significant environmental and social damage. We understand that our actions and business practices pertaining to the support of the production of sustainable palm oil is important and, having become an ordinary member of RSPO in August 2017, we reiterate our support for the use of Certified Sustainable Palm Oil ("CSPO") in products.

Our Approach

During the past year we have engaged with over 4,500 global and local suppliers across our supply chain, including manufacturers, wholesalers, retailers, importer/merchants, contractors and professional services providers. We recognise that sustainability in our own operations is insufficient and we have to also work with business partners to ensure best practice across our supply chain.

Circular economy principles include reassessing what is meant by a 'resource': for example, one organisation's waste may end up becoming a valuable resource for another organisation. Hence, we look to understand suppliers' needs and establish mutually beneficial partnerships for circular economy solutions. The Group works closely with our suppliers to ensure standards and practices for food safety and the environment are maintained throughout the value chain. For example, F&NHB is a member of the Supplier Ethical Data Exchange and conduct regular audits on their suppliers to ensure standards and practices for food safety and the environment are maintained throughout the value chain.

BUILDING A SUSTAINABLE FUTURE

F&N supports the UN Guiding Principles on Business and Human Rights across our value chain. Next year, we will look into introducing the 'Supplier Guiding Principles', which will cover areas and standards that we abide by in relation to: child labour; forced labour; promotion of non- discrimination and equal opportunities; freedom of association; collective bargaining; the elimination of excessive working hours; fair minimum wages; and health and safety standards, thereby applying

our circular economy principles beyond our own operations.

Our Procurement Policy covers our full commitment to standard principles of ethical business practices throughout the supply chain. While we have a business imperative to obtain goods and services at the best price in a timely manner, this is done only through means that adhere to guidelines and principles of fair play and transparency.

Group Suppliers by Supplier Category

Proportion of Spending on Materials

Direct materials

•

Packaging materials

• Ingredient and raw ingredients

•

Auxiliary materials

•

Co-packing

13.02

68.99

•

Finished and trading goods

86.98

31.01

Indirect materials

•

Sales and marketing

•

Logistics and warehousing

• Engineering and site services

% of direct material suppliers

% purchase value spent on direct material

•

Administration

% of indirect material suppliers

% purchase value spent on indirect material

•

Others

Our Supply Chain

	1		2
Raw Material Sourcing	Suppliers
Only high-quality raw	Suppliers are audited via a Supplier
materials and ingredients	Performance Tracking Initiative
are used.	(pre-qualification and approval) to
		ensure compliance with food safety
		regulations and standards.

Production

All personnel handling the product in the production line are trained in food management and hygiene.

Transportation Raw materials and ingredients are stored and transported in appropriate containers at the right temperatures.

5 6

Packaging

The most appropriate packaging is used for safety and convenience.

Distribution

A strict cold chain management system ensures proper handling throughout the distribution process.

68 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Responsible Supply Chain

Screening our Suppliers

At F&NHB, we have a systematic screening process for all new suppliers using environmental and social criteria. These criteria reflect the commitments towards the environment (such as reducing

waste, pollution and water resources) and society (including human rights and labour practices). The environmental performance of their raw material and primary packaging suppliers are also assessed annually to verify if they have:

1	implemented an
environmental policy

undertaken audits to monitor their environmental performance and compliance

maintained an ISO 14001 compliant environmental management system

Addressing Risks in our Supply Chain High or variable costs and uncertain availability of raw materials pose commercial risks to F&N. We therefore undertake risk assessments on our suppliers' prices and capacity to deliver goods and services. For key risks, we have established Business Continuity Plans to proactively ensure product supply.

We conduct annual supplier audits to ensure compliance with food safety regulations and standards. We assess a range of quality assurance and food security criteria to safeguard the health of consumers and the safety of workers in our supply chain. Criteria include the implementation and monitoring of good manufacturing processes, use of protective clothing, food safety management systems, and chemical management.

Non-compliant or underperforming suppliers must demonstrate that they are committed to taking the necessary corrective actions within a predefined period, or risk having their contracts terminated. This year, all critical suppliers were audited on food safety regulations and standards, and none was

found to be in non-compliance.

incident of non-compliance with food safety regulations and standards.

GRI 416-2: Incidents of Non-Compliance concerning the Health and Safety Impacts of Products and Services

BUILDING A SUSTAINABLE FUTURE

Enhancing Supplier Productivity Since 2013, our Thai dairy operations have been working with local farmers on improving milk quality. We continue to introduce new technologies and equipment (for example, milk machine testers and automatic jet cleaning milking machines) to help farmers increase their productivity, improve milk quality and reduce waste (as part of a circular economy approach).

We also organised seminars and produced quarterly educational newsletters for them.

This year, we worked with one of our milk suppliers in Thailand, to provide a champagne tank and piping route to the Thepsathit community to tackle the water shortage problem during the annual dry seasons. Around 50 employees volunteered in this programme and more than 200 residents benefitted from this programme.

Highlights

Helping 690 farmers in improving milk quality by sponsoring three milking tester machines to three milk cooperatives.
Organised quarterly seminars for 120 farmers from four milk cooperatives, covering various topics including procurement policy, quality evaluation, cost reduction and long-termsupply.
Supported 45 farmers in the cow feed production project, using Napier grass for total mix ration production to improve milk yield and reduce cost.

Special Recognition

The Animal Husbandry Association of Thailand has recently recognised Mr. Chatchawal Maneetap, Agricultural Business Manager in F&NDT for his work to support the Thai animal production industry in Thailand. He contributed to the invention of simple to use cleaning equipment for milking machines, for which he received the Thailand Kaizen award. Mr. Maneetap also helped to introduce antibiotic and somatic cell count control in fresh milk, which is helping farmers nationwide.

Halal Sourcing Partnership Programme As a major manufacturer of halal products in Malaysia, F&N recognises that it is in a position to facilitate the development of the nation's halal industry. F&NHB and Halal Industry Development Corporation signed a memorandum of agreement for the Halal Sourcing Partnership Programme.

Through this collaboration, F&NHB shared halal industry best practices whilst providing technical advice and knowledge to small and medium enterprises. The programme involved pitching sessions in Penang and Kuala Lumpur where

37 SMEs competed to showcase their products. Successful companies then underwent further screening, coaching and monitoring to elevate their capability to be qualified as halal vendors for multinational corporations.

70 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Responsible Supply Chain

Our Performance Highlights

Eco-credentials

We source raw materials that are certified with eco- credentials, such as the Forest Stewardship Council and CSPO, to ensure that they are produced in an environmentally and sociably responsible manner. All paper products used in the tetra packaging of our chilled beverages carries the certification.

We have a roadmap to purchase RSPO Credits for 100% of our projected palm oil usage by 2020. This year, we reached our interim target and purchased a total of 21,400 RSPO Credits, representing about 70% of our palm oil usage. 13,000 and 8,400 RSPO Credits were bought in Malaysia and Thailand respectively.

Total Number of RSPO Credits Purchased

Estimated

100% of annual palm oil usage for 2020

	31,000
70% of annual

palm oil usage	12,000
for 2019

			21,400
		30% of annual	8,400

		palm oil usage
		for 2018
		8,600		19,000

3,050		3,600	13,000

	50	5,000

	3,000
2017		2018	2019	Target for 2020
Malaysia		Thailand

Supporting Local Suppliers

F&N engages with local suppliers, where possible, to support the local economy and minimise environmental impacts from transportation. More than 92% of our suppliers are local, representing almost 73% of our purchase value expenditures.

Group Proportion of Purchase Value Spent on Local Suppliers

72.77 27.23

GRI 204-1 Proportion Of Spending On Local Suppliers

Proportion of Spending on Local Suppliers

	92.94	96.30

82.18		84.08
	78.58
23.35
Singapore	Malaysia	Thailand

% of purchase value spent on local suppliers	% of local suppliers
% of purchase value not spent on local suppliers		% of purchase value spent on local suppliers

Note:

1. Local suppliers refer to suppliers who conduct their businesses within the respective countries where F&N's operations (as covered in this report) are based, namely Singapore, Malaysia and Thailand.

BUILDING A SUSTAINABLE FUTURE

Safety &

Well-being

At F&N, we adopt a holistic approach to health and safety across our operations including creating a proactive safety culture and healthy workforce, embodying our brand promise of "Pure Enjoyment. Pure Goodness" through product safety and nutrition, as well as enabling consumers to make informed purchasing choices through accurate and appropriate labelling and responsible marketing.

The first chapter in this section outlines our approach to Occupational Health and Safety ("OHS"), including the systems and teams involved. It explains how best practice in OHS is cascaded to all of our employees, and how we have set ourselves challenging targets.

Consumer Health and Safety is in focus for the next chapter. F&N's approach here is embodied by our brand promise: "Pure Enjoyment. Pure Goodness." We will show how we use a range of tools to ensure the safety and nutrition of our products.

The final chapter in this section is about labelling and communication: how do we make sure consumers are aware of the contents and nutritional qualities of our products.

MATERIAL ISSUES COVERED

M06 Occupational Health and Safety
GRI 403-9,403-10 Occupational Health and Safety
M07 Consumer Health and Safety
GRI 416-1,416-2 Customer Health and
Safety
M08 Product and Service Labelling
GRI 417-1,417-2 Marketing and Labelling

SDGS MAPPED TO

OCCUPATIONAL HEALTH AND SAFETY

GRI 403 (2018): 403-9,403-10

Our Approach

Working as a team is the only way to achieve our aim of zero lost time injury. We cultivate a proactive 'safety first' culture for employees so they are aware of their responsibilities for both themselves and their colleagues. This includes advocating a healthy lifestyle through awareness of nutrition, physical activity and stress reduction measures.

To further strengthen our commitment to a safety culture, a) LTIFR; and b) number of Safety and Health initiatives were incorporated in FY2019 at F&NHB as part of shared key performance indicators for all executives.

Target:

To have zero Lost Time Injury

Frequency Rate ("LTIFR") by 2020

72 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Safety & Well-being

Safety Pyramid

Fatalities

Permanent Total Disabilities

Lost Times

Restricted Workday

Medical Treatment

First Aid

Near Miss

Creating a Safety Culture

F&N has established ESH systems and monitoring processes across our operations. Beyond compliance with national regulations, our safety practices adhere to international standards including ISO 14001 and OHSAS 18001 for our major sites. All employees, workers and activities are covered by our ESH systems, and all workers receive adequate training and safety equipment wherever appropriate.

Each plant has its own Safety Committee, with membership comprising management and workers. And this year, at F&NHB, we have also set up a Safety and Health committee for our corporate office and regional sales offices. These committees oversee our safety systems and programmes to ensure their effectiveness and meet every month to discuss accidents or near-misses and determine appropriate actions to reduce risks. They also conduct audits on our ESH systems, develop annual

safety plans, and initiate programmes to increase awareness of health and safety issues among employees.

Employees are encouraged to report any potential risks or hazards. They can do this by informally telling a safety representative or supervisor, or via a more formal-and if preferred, anonymous-reporting to their respective safety committees.

On the ground, we have Company Emergency Response Teams. They are trained to mobilise quickly and ensure the safety of our employees should any incidents occur.

Throughout F&N, all our Business Units have implemented and strictly followed the Accident/ Incident flow diagram which represents the Emergency Preparedness and Response procedures.

BUILDING A SUSTAINABLE FUTURE

Send to clinic/hospital

Medical review by Doctor

Resume works after finish

medication treatment

Flowchart of incident reporting at F&NCM

Incident happen

Report to Shift Supervisor/

Sr Leader/Line Leader

First Aider giving treatment

	NO



Further treatment			Resume works after finish

		first aid treatment

YES

Immediately report to HOD

HOD need forward & inform

case to ESH Officer &

Management

Incident report need to completed by end of shift

Incident report investigation

meeting by OSH Team on next working day

	NO

LTI			Resume works after finish

		medication treatment

YES

Report to DOSH/Labour

Office after MC > 4 days

74 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Safety & Well-being

Healthy Workforce

Our Health Risk Assessment Committee is staffed with trained personnel who can comprehensively review areas where employees may be exposed to health risks. We focus on ensuring that an environment is conducive to employees' well-being.

Our work environment is enhanced with ergonomic facilities to prevent office-related injuries and includes shower facilities to help employees integrate physical activity into their daily work life.

Employees access company-organised events such as badminton tournaments and Zumba classes and free medical check-ups. A gym was also set up at F&NHB's headquarter office this year to encourage office employees to stay healthy.

Air quality, brightness, temperature and noise levels are monitored in all our facilities. We conduct regular monitoring on noise levels at our facilities. For all workers working at area with high noise level, we provide hearing protector to reduce the noise exposure level. We also conduct audiometric tests regularly for

all at-risk workers, with follow up-doctor consultations where hearing impairments were identified.

In 2019, 325 employees from FNFS attended a total of 736 hours of OHS training while 99 employees from F&NCM benefitted from 819.5 hours of training. The training topics included:

Fire Prevention and Safety
Chemical and Gas Handling Management
First Aid Training and CPR
Forklift Driver Certification
Scheduled Waste
Confined Space
Electrical Safety
Working at Height
Radiation Safety and Health

In FY2019, we conducted a safety roadshow in Singapore to foster awareness amongst our employees on safety topics. Topics presented included driving safety, fire safety traffic management, occupational health, and healthy eating. Over 560 employees attended the event.

BUILDING A SUSTAINABLE FUTURE

We have incorporated SGSecure (the Singapore government's initiative to sensitise, train and mobilise our communities to prevent and deal with a terror attack) into our OHS management systems. This included registering an 'SGSecure Rep' with the Ministry of Manpower ("MOM"), reviewing our Standard Operating Procedures and conducting risk assessments to identify terror risks. During 2019, we have also provided SGSecure training to our employees to increase awareness on how to manage our safety and security risks.

Additionally, in order to provide the employees with easy access to information on rules and regulations pertaining to security, safety, environment and health in FNFS, all employees were issued a guidebook on rules, regulations and good practices pertaining to security, safety, environment and health.

In Malaysia and Thailand, we organised regular activities to engage our employees on safety topics. Some of these activities included SHE awareness week, an internal ISO 45001 audit and training, monthly newsletter and sharing sessions from local regulatory bodies.

All workers (employees and contractors) have access to occupational health services in relation to their relevant activities. This includes hygiene, ergonomics, protective equipment, and first aid kits. F&N is advised by accredited consultants on OHS matters. For example, FNFS is advised by Concord Associates who is accredited by both the Singapore Workplace Safety and Health ("WSH") Council and MOM. The F&N Corporate office engages Greensafe International Pte Ltd on OHS matters and they are similarly accredited by WSH and MOM. Where any work-related health matters occur, F&N pays relevant treatment costs and allow for any required time away from work.

We offer healthcare insurance to employees based on staff category and/or job levels. Malaysia and Thailand offer health care for all and we help to facilitate good health coverage for all workers

by organising an annual health screening and encouraging all employees to participate. Any work- related illnesses will receive follow-up consultations with doctors, if identified.

76 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Safety & Well-being

Our Performance Highlights

Our Group LTIFR this year was 2.58 per one million hours worked. We remained focused on achieving a zero-accident workplace. This shows our zero-tolerance attitude towards workplace accidents and the importance we place on our employees' safety.

GRI 403-9 (2018) - Work-related injuries

In FY2019, there were 39 employee recordable work-related injuries. None of the incidents were high-consequencework-related injuries or resulted in fatalities.

In FY2019, there were 14 non-employee recordable work-related injuries. None of the incidents were high-consequencework-related injuries or resulted in fatalities.

Group Lost Time Injury Frequency Rate

Employee Work-related Injuries Rate

Non-employeeWork-related Injury Rate

2.95	2.88

		2.58
			0.00
2017	2018	2019	Target for
			2020

4.36
	4.08
		1.41
Singapore	Malaysia	Thailand

17.63
	3.10	2.11

Singapore	Malaysia	Thailand

Group Employee Work-related Injuries

Group Non-employeeWork-related

by Type

Injuries by Type

Fracture

Others

Burns

Lacerations

Fracture

Others

Burns

Notes:

Rate of recordable work-related injuries is calculated by number of recordable work-related injuries / number of man-hours worked * 1,000,000
First aid cases are not counted inside the work-related injuries rate
Lost Time Injury Frequency Rate is calculated by number of workplace accidents with a lost time of 1 day or more / number of man-hours worked * 1,000,000

GRI 403-10 (2018) - Work-related ill health

There were 2 incidents of recordable work-related ill health at FNFS.

BUILDING A SUSTAINABLE FUTURE

Target:

We will offer at least one healthier choice option in all our product categories by 2020

CONSUMER HEALTH AND SAFETY

GRI 416-1,416-2

Consumer Health and Safety is more than a top priority, but a core principle embedded in our culture. We live by our brand promise of "Pure Enjoyment. Pure Goodness" by producing, marketing and selling our brands responsibly and enabling consumers to make informed purchasing choices. We consistently maintain the highest standards so that customers have full confidence when purchasing and consuming our products.

Our Approach

Quality & Safety

Our 136 years of success are built on mutual trust with our consumers and we are committed to enhancing their future well-being. This requires a holistic approach to safety across the life cycle of our products. In previous chapters, we have described how consumer health is a key part our innovation efforts, and about our processes for suppliers as part of our food safety assurance.

In our own operations, we adhere to all health and safety regulations applicable to the F&B industry for the markets in which we operate. All F&N products are manufactured under stringent international quality and food safety standards. Our plants are certified with FSSC 22000, ISO 22000 and HACCP Food Safety management systems, and all stages of our production processes are subjected to rigorous quality control procedures.

Other certifications include: Food Safety Management System ISO 22000; Quality Management System ISO 9001; Accredited Laboratory; Good Manufacturing Practice; and Hazard Analysis and Critical Control Point standards. Our SRMC regularly reviews our key risks in relation to Consumer Health and Safety.

We are committed to providing the highest quality products and ensuing product integrity. From manufacturing to distribution and storage, we protect the entire product lifecycle. In the 'Packaging' chapter, we also described how our product packaging and labelling are designed to ensure our customers' health and safety.

Apart from packaging, storage and distribution of products are important to maintain product integrity. Our Singapore production facility follows strict standard of operation procedures so that all our products are stored and transported in good conditions, such as within the tolerated temperature, lighting and stress on packages. F&NCM in Malaysia also engages with third party experts on cold storages and distribution to ensure supply chain security and integrity and maintain product quality. They also conduct annual audits to ensure that their storage and distribution are of the highest standards.

We facilitate feedback from our customers through many communication channels for our customers' convenience. Customers can contact us through our product website or by sending us an email with regards to their enquiries. We have also set up accounts on social media, such as Facebook and Line application, for customers to stay connected with us and keep up-to-date on our products. In Singapore, we have set up a hotline for customer to directly contact us with their enquiries.

We are committed to product quality and food safety and have obtained local and

international certifications such as:

1. FNFS	2. F&NHB (F&NBM, F&NDM	3. F&NUL	4. F&NCM
a.	ISO 22000:2005 - Food	and F&NDT)	a.	ISO 22000 - Food Safety	a.	FSSC 22000 - Food
	Safety Management	a.	ISO 22000 - Food Safety		Management System		Safety System
	System		Management System	b. FSSC 22000 - Food		Certification
b.	License to operate food	b.	FSSC 22000 - Food Safety		Safety System	b.	Halal Certification
	establishment		System Certification		Certification
c.	Halal Certification	c.	Halal Certification	c.	Halal Certification
		d.	Food Safety According
			to Hazard Analysis and
			Critical Control Point
			(HACCP) System
			(MS 1480:2007)
		e.	Good Manufacturing
			Practice (GMP)

F&N Beverages Manufacturing Sdn Bhd ("F&NBM") F&N Dairies Manufacturing Sdn Bhd ("F&NDM")

78 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Safety & Well-being

Halal Assurance

All our products are halal certified by the Department of Islamic Development Malaysia and other relevant authorised certification bodies. Each of our manufacturing plants has a Halal Committee, responsible for halal compliance in our supply chain (from materials selection and purchasing, to the storage, warehousing, and transportation of our products).

During the year, in Malaysia, we held 94 workshop sessions involving over 1,100 employees in order to raise halal awareness. Employees with responsibility in halal matters for F&NHB also attended a series of professional training sessions related to halal internal audit and assurance. The halal awareness training was also conducted to their key transporters in 2019.

We also prohibit non-halal food and drinks within factory premises including offices and canteens.

Nutrition Charter

To safeguard our consumers' well-being, while at the same time providing them with great tasting products, we are committed to developing products and undertaking initiatives to promote health and nutrition. The F&N Nutrition Charter outlines our

commitment to develop products that are healthy for consumers and guides us throughout product development. The principles of the Nutrition Charter are:

F&N product developments are led by our group philosophy of "Pure Enjoyment. Pure Goodness"
- our commitment to consumers that we will deliver products that are not only great-tasting but also packed with nutritional goodness;
To develop products based on proven scientific evidence and research, and consumer insights and tastes relevant to evolving Asian lifestyles;
To actively self-regulate and ensure accountability via strong corporate governance;
To provide safe, high-quality and affordable products to all our consumers; and
To innovate and renovate to meet the changing needs of all our consumers and ensure consistent delivery of good taste and the right nutritional values.

Towards Healthier Options

We put much emphasis on developing healthier products, such as by adding vitamins and minerals to boost products' benefits. Many of our products carry the 'Healthier Choice' Symbol or Logo:

Some products with Singapore's	Some products with Malaysia's	Some products with Thailand's
'Healthier Choice Logo'
'Healthier Choice Symbol'	'Healthier Choice Logo'

•	100PLUS	•	100PLUS	•	F&N MAGNOLIA Pasteurized Milk
	Full Fat and Low Fat
•	100PLUS ACTIVE	•	100PLUS ACTIVE
•	F&N MAGNOLIA Plus Gingko
•	F&N MAGNOLIA Gotcha	•	FARMHOUSE Fresh
	Plain Flavour

•	CARNATION Low Fat High Calcium	•	F&N MAGNOLIA Lo-FatHi-Cal Milk	•	BEAR Brand Sterilized Milk Non-Fat
	Evaporated Milk
			•	BEAR Brand Sterilized Milk Regular

				•	BEAR Brand Sterilized Milk Low-Fat
				•	BEAR Brand Sterilized Milk High
					Folate

BUILDING A SUSTAINABLE FUTURE

Our philosophy of 'Pure Enjoyment. Pure Goodness'' means innovating constantly to satisfy changing consumer preferences. For example, OYOSHI tea products are brewed from high quality organic tea leaves; our soya bean milk is made with first grade non-GMO (genetically modified organisms) soybeans; and none of our products sold in Malaysia and Thailand contain Partially Hydrogenated Oils ('trans fatty acids'). We provide alternative and healthier options by innovating our products for consumers with food intolerance, such as lactose free milk.

Another aspect of the healthier offering is our commitment to reducing sugar content in our products. This year, we have successfully reformulated about 90% of our RTD products to below the 5g/100ml sugar content. This included:

Full range of 100PLUS RTD variants
Full range of F&N Fun Flavours Carbonated Soft
Drinks, except F&N Mixer
F&N SEASONS Asian Drinks
F&N SEASONS Soya

Similarly, in Singapore, F&N also continues to support the Singaporean Government's Sugar Reduction Commitment initiative by:

Ensuring that all our RTD beverages contain less than 12g/100ml of sugar.
Continuing to innovate, renovate and promote lower sugar beverages

FY2019 Sugar Index (Total Beverages)

Sugar Index: Total Beverages (SG & MY) with Water

10.0

1,400

39% drop in Sugar Index

	9.0	8.7
		8.4	8.2										1,200
	8.0		8.0
			7.8	7.7	7.8


	7.0					7.3	7.2	6.9	6.9	6.7				1,000	Beverage Total
							6.5
(g/100ml)										6.2
										6.0
6.0
											800
												5.3
5.0


Sugar	4.0													600	(Million

3.0													400
													L)


	2.0
														200
	1.0
	0.0													0.0

03/04 04/05 05/06 06/07 07/08 08/09

09/10

10/11

11/12

12/13

13/14

14/15

15/16

16/17

17/18

18/19

Sugar Index

Total Beverage

Singapore Beverage

Malaysia Beverage

Since 2004, F&N has taken deliberate steps in reducing sugar content in our beverages. Today, we are pleased to report a reduction of 39% in sugar index (grams of sugar content per 100ml) across our range of beverages. This also represents an 8% reduction against last year.

Sugar index is calculated by total volume of sugar (gram)/total production volume of beverages (million litre).
39% reduction from FY03/04 to FY18/19, compared to 31% reduction from last reporting (FY03/04 to FY17/18)
Decrease in FY 18/19 due to: product portfolio mix and sugar reduction projects in MY and SG
Beverages include Isotonic, CSD, Water, Tea, Soya and Juice (Ambient)

80 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Safety & Well-being

Some highlights from new products introduced this year:

Singapore

F&N NUTRISOY no sugar added Fresh Soya
Milk - Launched in May this year, with three times more protein and 28 times more calcium compared to a regular soya bean drink, the all new F&N NUTRISOY No Sugar Added Fresh Soya Milk helps reduce the risk of developing heart diseases and promotes a healthier heart.
F&N FRUIT TREE FRESH Wonders Kale,
Spinach & Broccoli Juice Drink with Organic
Chia Seeds - launched in February this year, one serving fulfils the recommended daily vitamin C intake and the daily requirement of 2+2 servings of fruits and vegetables.
OISHI GOLD Genmaicha No sugar - launched in November last year, our unsweetened drink made from green tea mixed with roasted brown rice.
OISHI GOLD Kabusecha No Sugar - launched in November last year, our unsweetened drink made from tea leaves which were shaded from direct sunlight for one week, resulting in its mild taste and high catechin levels (a natural antioxidant).

Malaysia

F&N Lychee Pear - Our first carbonated soft drinks launched in April. It has received the Healthier Choice logo from Ministry of Health
Malaysia, with 4.9g/100ml sugar.
F&N SEASONS Double Fruit Tea - Our new range of healthier option tea with refreshing fruit combination was launched in July this year:
F&N SEASONS Apple Pomegranate Tea and F&N SEASONS Watermelon Lychee Tea, with no added preservatives or colouring.
F&N SEASONS Pu-Erh Chrysanthemum - Our new unsweetened drink made from Pu-Erh tea and sweet chrysanthemum was launched during this Chinese New Year. It contains no added preservatives, colouring or sugar.

Thailand

8. F&N MAGNOLIA Plus Lactose Free milk - Our new range of pasteurised milk was launched in

April 2019 to offer dairy-alternatives for lactose- intolerant consumers.

BUILDING A SUSTAINABLE FUTURE

Nutrition for Soon-to-be Mothers

This year, BEAR BRAND collaborated with Nestle Mom & Me Club to educate consumers about the importance of folate to expecting mothers. Soon-to-be mothers were provided with product knowledge during the in-store promotional exercise and servings of BEAR BRAND High Folate Sterilised Milk were handed out to mothers who were in their first trimester of pregnancy.

Our Performance Highlights

In FY2019, F&N maintained our health and safety standards with no significant incidents of non- compliance with regulations resulting in a fine, penalty or warning.

We are making good progress towards offering at least one healthier choice in each RTD product category by 2020. There are currently healthier options in 14 out of 15 (93%) product categories.

We currently do not have a healthier option available for the 'Energy' product category as we believe that reducing the sugar level of our energy drinks too drastically would result in a loss of its functionality and purpose, which is to provide our consumers, who require it, with an energy boost.

	Healthier
Product Category	Choice Option?
Milk	Yes
Drinking/Eating Yogurt	Yes
Fruit Juice	Yes
Soya	Yes
Asian Soft Drinks (Chilled/Pasteurised)	Yes
Isotonic	Yes
Water	Yes
Carbonated Soft Drinks	Yes
Tea	Yes
UHT & Sterilised Milk	Yes
UHT Soya	Yes
Juice	Yes
Asian Soft Drinks (Ambient)	Yes
Frozen	Yes
Energy	No

82 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Safety & Well-being

PRODUCT AND SERVICE LABELLING

GRI 417-1; GRI 417-2

Our packaging and labelling are the primary methods by which we communicate information about our products' quality, nutrition, safety and disposal to consumers. It is therefore essential that our labelling is comprehensive and clear, allowing our busy customers to make informed purchasing decisions.

Our Approach

Our labelling adheres to Singapore Food Regulations as well as to the guidelines set down by Agri-Food & Veterinary Authority in Singapore. We adhere to the Food Act in Malaysia and all requirements of the Food and Drug Administration in Thailand. All information disclosed on our labels is subject to a review process involving a range of internal experts including our R&D and Scientific & Regulatory Affairs teams, plus dietician advice. Labels are then submitted to government authorities for verification and endorsement.

We go beyond mandatory requirements and for all products we provide information on ingredients, sourcing, energy per serving size, recommended daily allowances of the different nutritional components, expiry dates and nutrition tips.

In order to make it as easy as possible for consumers to understand fundamental information (calories and contribution to recommended daily Calorie intake), we include 'front of pack labelling' for most of our ready-to-drink products.

We take care to ensure that our marketing and advertising activities do not violate any ethical standards. We adhere to the Malaysian Code of Advertising Practice in Malaysia and the Consumer Protection Act of B.E. 2522 (1979) in Thailand.

In Malaysia, we are a signatory to the 'Responsible Advertising to Children' initiative and have pledged to restrict marketing to children under 12 years of age.

BUILDING A SUSTAINABLE FUTURE

Our Performance Highlights

There were no fines or penalties for breaches recorded in this year. In FY2019, there were no instances of non-compliance with regulations concerning product labelling and packaging, and no breaches of advertising were reported.

All our product categories comply with product labelling requirements as below:

The sourcing of components of the product or service

Others (Halal logo, Certification on HACCP, Nutritional information)

Disposal of the product and environmental/ social impacts; and

Content, particularly regarding substances that might produce an environmental or social impact

Safe use of the product or service

84 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Appendix

PERFORMANCE SUMMARY

The environmental and social data for FY17 and FY18 was restated to reflect changes (updates to the data and/or calculation methodology and errors in calculations) that would otherwise compromise the accuracy, consistency and relevance of the reported information.

GRI Standards

DRIVING ECONOMIC VALUE

Material Topic: Economic Performance

GRI 201-1

Direct economic value generated and distributed

Reference	Unit
Revenue	SGD

Economic value distributed

Annual dividend

Cost of sales

Employee benefit expenses	SGD

Income tax expenses

Economic value retained

GRI Standards	Reference	Unit
EMPOWERING OUR PEOPLE
Material Topic: Talent Management
GRI 401-1	Total new employee hires
New employee hires and employee
- Age under 30 years old
turnover

- Age between 30 - 50 years old


	- Age over 50 years old

	- Male

	- Female	Person

	Total employee turnover


	- Age under 30 years old

	- Age between 30 - 50 years old

	- Age over 50 years old

	- Male

	- Female

GRI 404-1	Total training hours	Hours
Average hours of training per year per
- Male
employee

- Female	Person


	- Executives


	- Non-executives

	Average hours of training per employee

	Average hours of training per Executive across the Group	Hours

	Average hours of training per Non-executive across the Group

Material Topic: Market Presence

GRI 202-2

Proportion of senior management hired from the local community

Percentage of senior management hired	%
from local community

BUILDING A SUSTAINABLE FUTURE

Financial Year

		FY2017			FY2018			FY2019



		1,898 million			1,835 million			1,902 million


		65 million			65 million			80 million

		1,237 million			1,252 million			1,278 million

		279 million			275 million			278 million

		15 million			20 million			56 million

		303 million			223 million			211 million

					Financial Year

		FY2017			FY2018			FY2019

	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand


256 (32.32%)	289 (36.49%)	247 (31.19%)	78 (10.47%)	345 (46.31%)	322 (43.22%)	149 (22.44%)	293 (44.13%)	222 (33.43%)

133 (16.79%)	156 (19.70%)	138 (17.43%)	35 (4.70%)	203 (27.25%)	195 (26.17%)	63 (9.49%)	179 (26.96%)	117 (17.62%)

112 (14.14%)	125 (15.78%)	109 (13.76%)	38 (5.10%)	136 (18.26%)	127 (17.05%)	80 (12.05%)	101 (15.21%)	105 (15.81%)

11 (1.39%)	8 (1.01%)	0 (0.00%)	5 (0.67%)	6 (0.80%)	0 (0.00%)	6 (0.90%)	13 (1.96%)	0 (0.00%)

158 (19.95%)	197 (24.87%)	152 (19.19%)	45 (6.04%)	238 (31.95%)	166 (22.28%)	79 (11.90%)	205 (30.87%)	151 (22.74%)

98 (12.37%)	92 (11.62%)	95 (12.00%)	33 (4.43%)	107 (14.36%)	156 (20.94%)	70 (10.54%)	88 (13.25%)	71 (10.69%)

370 (27.97%)	726 (54.88%)	227 (17.16%)	95 (14.99%)	275 (43.37%)	264 (41.64%)	186 (31.42%)	210 (35.47%)	196 (33.11%)

156 (11.79%)	219 (16.56%)	110 (8.31%)	27 (4.26%)	104 (16.40%)	125 (19.72%)	43 (7.26%)	97 (16.39%)	77 (13.01%)

156 (11.79%)	346 (26.15%)	112 (8.47%)	55 (8.68%)	155 (24.45%)	131 (20.66%)	109 (18.41%)	107 (18.07%)	110 (18.58%)

58 (4.39%)	161 (12.17%)	5 (0.38%)	13 (2.05%)	16 (2.52%)	8 (1.26%)	34 (5.74%)	6 (1.01%)	9 (1.52%)

242 (18.29%)	488 (36.89%)	136 (10.28%)	50 (7.89%)	168 (26.50%)	142 (22.40%)	113 (19.09%)	131 (22.13%)	148 (25.00%)

128 (9.68%)	238 (17.99%)	91 (6.88%)	45 (7.10%)	107 (16.87%)	122 (19.24%)	73 (12.33%)	79 (13.34%)	48 (8.11%)

9,853.50	25,865.00	20,016.00	10,367.44	37,358.50	20,881.00	14,550.81	43,576.80	24,861.00

940	1583	641	545	1,601	611	726	1,634	706

711	451	335	715	543	508	704	532


278	776	328	261	513	314	328	839	351

662	1518	764	619	1,803	840	906	1,498	887

10.48	11.28	18.33	11.78	16.13	18.09	11.79	18.64	20.08

		21.56			30.20			29.97

		8.39			10.96			11.39


100	90	100	100	97	100	100	91	100

86 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Appendix

1. In FY2019, we have achieved our target for Talent Management and provided an average of at least 16 and 10 training hours across the Group per employee for the employee categories of Executive and Non-executive respectively. We have provided an extra 16.27 and 1.18 hours of training on average per employee in the employee categories of Executive and Non-executive respectively when compared to the target.

GRI Standards	Reference	Unit
ENHANCING SOCIAL WELL-BEING

Material Topic: Creating Value for Society

GRI 413-1

Operations with local community engagement, impact assessments, and development programs

Percentage of operations with implemented local community	%
engagement, impact assessment, and development programs

GRI Standards	Reference	Unit
ECO-EFFICIENCY
Material Topic: Water Stewardship
GRI 303-3	Total volume of water withdrawal
Water withdrawal
Surface water


	Ground water	Ml

	Rainwater collected directly and stored by F&N

	Third-Party Water (e.g. municipal water)

GRI 303-4	Total volume of water discharged
Water discharged
Surface water


	Ground water	Ml

	Seawater

	Third-Party water treatment and usage

GRI 303-5	Total volume of water consumed	Ml
Water consumption


Water intensity	Total volume of water consumed	m3
	Production volume	MT

	Water intensity ratio	m3/MT

	Group water intensity ratio


Material Topic: Effluents and Waste

GRI 306-2

Waste by type and disposal method

Total volume of solid waste generated	kg

Hazardous waste

Reuse

Recycling

Composting (Self-Fertilizer)

Recovery, incl. energy recovery

Other recycled/reused waste	kg

Incineration

Chemical waste water treatment

Other disposed waste

Landfill

Non-hazardous waste

Reuse

Recycling

Composting (Self-Fertilizer)

Recovery, incl. energy recovery

Other recycled/reused waste

Incineration

Chemical waste water treatment

Other disposed waste

Landfill

BUILDING A SUSTAINABLE FUTURE

Financial Year

		FY2017			FY2018			FY2019

	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand



100	100	100	100	100	100	100	100	100

Financial Year

		FY2017			FY2018			FY2019

	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand


321	2,084	569	285	1,737	604	303	2,631	613

0	180	0	0	171	0	0.48	1,608	0

0	650	0	0	91	0	0	102	0

0	0.43	0	0	0.29	0	0	0	0

321	1,253	569	285	1,474	604	302	920	613

282	875	300	250	1,150	310	244	1,100	255

0	810	0	0	1,106	0	0	660	0

0	0	0	0	0	0	0	4	0

0	0	0	0	0	0	0	271	0

282	65	300	250	44	310	244	165	255

39	1,209	270	35	586	295	58	1531	358

39,322	1,208,555	269,764	34,791	586,478	294,656	58,269	1,531,339	357,836

55,704	750,956	312,629	52,170	788,063	317,760	53,647	808,907	353,460

0.71	1.61	0.86	0.67	0.74	0.93	1.09	1.89	1.01

		1.36			0.79			1.60


0	0	0	0	0	0	7,449,362	15,825,908	2,555,059


							0	6,945	0

							0	0	0

							0	0	0

							0	11,682	13,170

	Breakdown of data for solid waste generated to be disclosed from FY19 onwards	0	1,127	0

							31,119	71,526	0

							0	7,245	0

							0	2,667	0

							0	1,500	3,867


							3,357,360	256,643	0

							2,182,542	6,593,986	857,111

							0	6,194,750	0

							305,851	0	24,780

	Breakdown of data for solid waste generated to be disclosed from FY19 onwards	0	6,237	714,140

							1,572,490	357,500	0

							0	0	0

							0	16,792	4,340

0	2,297,309	937,650

88 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Appendix

GRI Standards		Reference	Unit
ECO-EFFICIENCY
Material Topic: Effluents and Waste

Solid waste intensity		Solid waste incinerated, disposed or sent to landfill	kg

		Production volume	MT

		Solid waste intensity ratio	kg/MT

		Group solid waste intensity ratio


Solid waste recycled		Total solid waste generated	kg

		Solid waste reused, recycled or recovered	kg

		Solid waste recycled	%

Material Topic: Energy and Climate Change

GRI 302-1		Total energy consumption within the organisation	MJ
Energy consumption within the
	Fuel consumption from non-renewable fuel sources

organisation

	Fuel Type


		Natural Gas

		Diesel

		Liquified Petroleum Gas	MJ

		Gasoline

		Fuel Oil

		Energy purchased

		Electricity

		Steam

		Fuel consumption from renewable fuel sources	MJ

		Solar

		Biodiesel

GRI 302-3		Total energy intensity ratio	MJ/MT
Energy intensity
	Group total energy intensity ratio



GRI 305-1		Total Scope 1 GHG emissions (CO2e)	MT CO2e
Direct (Scope 1) GHG emissions (CO2e)

GRI 305-2		Total Scope 2 GHG emissions (CO2e)
Energy indirect (Scope 2) GHG emissions				MT CO2e
(CO2e)
GRI 305-4		Total energy intensity ratio	MT CO2e/MT
Greenhouse gas (GHG) emissions intensity
	Group total energy intensity ratio

We are working towards our target for Water Stewardship to reduce the water intensity ratio at our plants across the Group by 5% from 2017 by 2020 in FY2019. We saw a decrease by about 4% on our Group water intensity ratio as compared to FY2017.
We have also met our target for Effluents and Waste to reduce solid waste intensity ratio by 5% across the Group from 2017 in FY2018. We have achieved a reduction of around 25% on our Group solid waste intensity ratio as compared to FY2017.
We are working towards achieving our targets on Energy and Climate Change of reducing the Group's energy and GHG emissions intensity ratios by 5% between 2017 and 2020. Our energy and GHG emissions intensity ratios have increased by about 1% and 5% as compared to FY2017.
This is mainly due to the commissioning 2 new operation lines at our Shah Alam plant in Malaysia. As they have a higher water and energy consumption, our water, energy and GHG intensity ratio would tend to increase due to the increase usage.

BUILDING A SUSTAINABLE FUTURE

Financial Year

		FY2017			FY2018			FY2019

	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand



2,166,683	3,275,589	1,135,280	2,146,709	3,090,927	1,228,830	1,603,609	2,754,539	945,857

55,704	750,956	312,629	52,170	788,063	317,760	53,647	808,907	353,460

38.90	4.36	3.63	41.15	3.92	3.87	29.89	3.41	2.68

		5.88			5.58			4.36

9,109,804	13,789,395	2,491,760	8,118,473	15,027,642	1,829,408	7,449,362	15,825,908	2,555,059

6,943,121	10,513,806	1,356,480	5,971,764	11,936,718	600,578	5,845,753	13,071,369	1,609,201

76.22	76.25	54.44	73.56	79.43	32.83	78.47	82.59	62.98

167,607,110	630,354,816	410,173,379	159,151,176	666,969,895	424,704,086	153,507,610	800,427,368	384,202,283

167,607,110	630,354,816	410,173,379	159,151,176	666,969,895	424,704,086	153,486,464	800,424,704	384,202,283


17,826,587	358,496,125	216,174,967	16,544,494	368,050,181	225,253,959	13,960,952	446,071,746	229,300,960

60,322,446	22,208,843	0	56,922,639	23,260,944	56,815	60,233,181	2,825,964	512,292

987,996	4,782,431	1,154,887	542,328	3,901,013	955,564	268,468	20,154,298	2,486,487

0	0	0	0	0		0	52,173	0

0	0	30,344,423	0	0	21,555,830	0	25,099,429	18,276,071


88,470,080	244,867,417	162,499,101	85,141,715	271,757,757	167,877,894	79,023,863	306,221,094	130,618,429

0	0	0	0	0	9,004,024	0	0	3,008,044

0	0	0	0	0	0	21,146	2,664	0

0	0	0	0	0	0	21,146	0	0

0	0	0	0	0	0	0	2,664	0

3,008.86	839.40	1,312.01	3,050.65	846.34	1,336.56	2,861.42	989.52	1,086.98

		1,079.38			1,080.17			1,100.43

5,576	22,092	14,569	5,219	22,649	15,112	5,305	31,480	15,864

10,302	47,205	25,567	9,914	52,138	27,287	9,202	58,805	20,843

0.285	0.092	0.128	0.290	0.095	0.133	0.270	0.112	0.104

		0.112			0.114			0.116

90 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

Appendix

GRI Standards	Reference	Unit
RESPONSIBLE SUPPLY CHAIN
Material Topic: Sustainable Sourcing
GRI 204-1	Percentage of local suppliers	%
Proportion of spending on local suppliers
Percentage of purchase value spent on local suppliers

GRI Standards	Reference	Unit

SAFETY & WELL-BEING
Material Topic: Occupational Health & Safety

GRI 403-9	Employees work-related injury rate
Work-related injuries
Non-employeeswork-related injury rate	incident/million hours

	Work-related Fatalities	incident

	Lost Time Injury Frequency Rate (LTIFR)

Group Lost Time Injury Frequency Rate

Material Topic: Consumer Health & Safety

incident/million hours

GRI 416-1

Assessment of the health and safety impacts of product and service categories

Percentage of significant product and service categories for	%
which health and safety impacts are assessed for improvement

GRI 416-2

Incidents of non-compliance concerning the health and safety impacts of products and services

Total number of incidents of non-compliance concerning the	incident
health and safety impacts of products and services

Material Topic: Marketing and Labeling

GRI 417-1	Percentage of significant product or service categories covered	%
Requirements for product and service	by and assessed for compliance with such procedures stated
information and labelling	above

GRI 417-2	Total number of incidents of non-compliance concerning	incident
Incidents of non-compliance concerning	product and service information and labeling
product and service information and
labelling

1. We are constantly working towards meeting our new target of reducing the Group Lost Time Injury Frequency Rate to 0 by 2020. We have since saw a drop of about 12.5% in our Group LTIFR as compared to FY2017 and will continue to work towards our eventual goal.

BUILDING A SUSTAINABLE FUTURE

Financial Year

		FY2017			FY2018			FY2019

	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand



81.65	98.15	95.60	83.48	94.25	96.11	82.18	92.94	96.30

23.65	64.70	82.46	32.49	71.73	84.84	23.35	78.58	84.08


					Financial Year

		FY2017			FY2018			FY2019

	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand	Singapore	Malaysia	Thailand



9.96	7.45	3.17	4.28	4.33	3.06	4.38	4.08	1.41

	Non-employee worker data to be reported	Non-employee worker data to be reported	17.63	3.10	2.11
		from FY19 onwards			from FY19 onwards

0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

5.98	2.07	1.70	4.28	2.78	1.75	4.38	2.66	0.70

		2.95			2.88			2.58

		75			93			93

0	0	0	0	0	0	0	0	0

	100			100			100

0	0	0	0	0	0	0	0	0

92 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

External assurance statement

BUILDING A SUSTAINABLE FUTURE

94 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

GRI Content Index

This report has been prepared in accordance with the GRI Standards: Core option.

GENERAL DISCLOSURES

Profile Disclosure	Description
STRATEGY AND ANALYSIS
GRI 102-14	Message from Chairman of SDC
ORGANISATIONAL PROFILE
GRI 102-1	Name of organisation
GRI 102-2	Activities, brands, products and services
GRI 102-3	Location of headquarters
GRI 102-4	Location of operations
GRI 102-5	Ownership and legal form
GRI 102-6	Markets served
GRI 102-7	Scale of the organisation
GRI 102-8	Information on employees and other
	workers
GRI 102-9	Describe the organisation's supply chain
GRI 102-10	Report any significant changes during

	the reporting period regarding the
	organisation's size, structure, ownership
	or its supply chain
GRI 102-11	Addressing the precautionary approach
	or principle
GRI 102-12	External charters, principles or initiatives
	endorsed
GRI 102-13	Membership of associations
GRI 102-41	Collective bargaining agreements
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
GRI 102-45	Report coverage of entities included in
	the consolidated financial statements
GRI 102-46	Process for defining the report content
	and the aspect boundaries
GRI 102-47	Material aspects identified
GRI 102-48	The effect of any restatements of
	information provided in previous reports
GRI 102-49	Significant changes from previous
	reporting periods in the Scope and
	Aspect Boundaries

Reference page / Explanation

Pg. 04-05

Pg. 03

Pg. 11

Pg. 08 Pg. 08-09

Pg. 08 (Full information is also available in our Annual Report.)

Pg. 08-09 (Full information is also available in our Annual Report.)

Pg. 09, 35

Pg. 12

No significant changes from previous reporting

This information is available in our Annual Report, section on Addressing our Risk & Opportunities.

UN Guiding Principles on Business and Human Rights (Pg. 67) and Pledge on Responsible Advertising towards Children (Pg. 82)

RSPO, SASPO

We have a strong commitment to transparent dialogue. In FY2019, 52% of our employees were covered by collective bargaining agreements.

Pg. 07 (Full information is also available in our Annual Report.)

Pg. 18-21

Pg. 19-21

Pg. 84

No significant changes from previous reporting

BUILDING A SUSTAINABLE FUTURE

GENERAL DISCLOSURES

Profile Disclosure	Description
REPORT PROFILE
GRI 102-50	Reporting period
GRI 102-51	Date of most recent previous report
GRI 102-52	Reporting cycle
GRI 102-53	Contact point for questions
GRI 102-54	'In accordance' option, the GRI content
	index and external assurance
GRI 102-55	GRI content index
GRI 102-56	External assurance
STAKEHOLDER ENGAGEMENT
GRI 102-40	List of stakeholder groups engaged by
	the organisation
GRI 102-42	Basis for identification and selection of
	stakeholders

GRI 102-43	Approaches to stakeholder engagement
GRI 102-44	Response to key topics and concerns
	raised
GOVERNANCE
GRI 102-18	Governance structure of the
	organisation
ETHICS AND INTEGRITY
GRI 102-16	Values, principles, standards and norms
	of behaviour such as codes of conduct
	and code of ethics

Reference page / Explanation

Pg. 07

Pg. 06

Pg. 07

Pg. 92, 94

Pg. 94-99

Pg. 92-93

Pg. 15-16

F&N divides its stakeholders into 7 categories:

Employees;
Suppliers;
Distributors and Trade Customers;
Consumers;
Investment Community;
Communities; and
Regulators

We are currently establishing guidelines for appropriate stakeholder engagement across these eight categories, to ensure that our stakeholders are given the opportunity to voice their demands, opinions, concerns and suggestions

Pg. 15-16

Pg. 14

96 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

GRI Content Index

SPECIFIC DISCLOSURES

Profile Disclosure	Description	Reference page / Explanation
DRIVING ECONOMIC VALUE
Material Issue: Economic Performance
GRI 103-1	Explanation of the materials topic and	Pg. 26
	its Boundary
GRI 103-2	The management approach and its	Pg. 26
	components
GRI 103-3	Evaluation of the management	Pg. 26
	approach
GRI 201-1	Direct economic value generated and	Pg. 27
	distributed
Material Issue: Innovation
GRI 103-1	Explanation of the materials topic and	Pg. 28-33
	its Boundary
GRI 103-2	The management approach and its	Pg. 28-33
	components
GRI 103-3	Evaluation of the management	Pg. 28-33
	approach
EMPOWERING OUR PEOPLE
Material Issue: Talent Management
GRI 103-1	Explanation of the materials topic and	Pg. 34-41
	its Boundary
GRI 103-2	The management approach and its	Pg. 34-41
	components
GRI 103-3	Evaluation of the management	Pg. 34-41
	approach
GRI 401-1	Total number and rates of new	Pg. 41
	employee hires and employee turnover
	by age group, gender, and region
GRI 401-2	Benefits provided to full-time	Pg. 37
	employees that are not provided to
	temporary or part-time employees,
	by significant locations of operation
GRI 404-1	Average hours of training per year per	Pg. 41
	employee by gender and employee
	category

GRI 404-2	Programmes for upgrading employee
	skills and transition assistance
	programmes

Pg. 38

Currently, we do not have any transition assistance programme.

Material Issue: Market Presence
GRI 103-1	Explanation of the materials topic and	Pg. 42
	its Boundary
GRI 103-2	The management approach and its	Pg. 42
	components
GRI 103-3	Evaluation of the management	Pg. 42
	approach
GRI 202-2	Proportion of senior management hired	Pg. 42
	from the local community

BUILDING A SUSTAINABLE FUTURE

SPECIFIC DISCLOSURES

Profile Disclosure	Description	Reference page / Explanation
ENHANCING SOCIAL WELL-BEING
Material Issue: Creating Value for Society
GRI 103-1	Explanation of the materials topic and	Pg. 43-49
	its Boundary
GRI 103-2	The management approach and its	Pg. 43-49
	components
GRI 103-3	Evaluation of the management	Pg. 43-49
	approach
GRI 413-1	Percentage of operations with	Pg. 86-87
	implemented local community
	engagement, impact assessments, and
	development programmes
ECO-EFFICIENCY
GRI 307-1	Non-compliance with environmental	Pg. 51
	laws and regulations
Material Issue: Water Stewardship
GRI 103-1	Explanation of the materials topic and	Pg. 52-54
	its Boundary
GRI 103-2	The management approach and its	Pg. 52-54
	components
GRI 103-3	Evaluation of the management	Pg. 52-54
	approach
GRI 303-1	Interactions with water as a shared	Pg. 52-54
(2018)	resource
GRI 303-2	Management of water discharge-related	Pg. 55
(2018)	impacts
GRI 303-3	Water withdrawal	Pg. 54
(2018)
GRI 303-4	Water discharge	Pg. 57
(2018)
GRI 303-5	Water consumption	Pg. 54
(2018)
Material Issue: Effluents and Waste
GRI 103-1	Explanation of the materials topic and	Pg. 54-57
	its Boundary
GRI 103-2	The management approach and its	Pg. 54-57
	components
GRI 103-3	Evaluation of the management	Pg. 54-57
	approach
GRI 306-2	Total volume of waste disposed by type	Pg. 57
	and disposal method

98 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES | SUSTAINABILITY REPORT 2019

GRI Content Index

SPECIFIC DISCLOSURES

Profile Disclosure	Description	Reference page / Explanation
ECO-EFFICIENCY
Material Issue: Energy and Climate Change
GRI 103-1	Explanation of the materials topic and	Pg. 60-65
	its Boundary
GRI 103-2	The management approach and its	Pg. 60-65
	components
GRI 103-3	Evaluation of the management approach	Pg. 60-65
GRI 302-1	Total energy consumption	Pg. 64
GRI 302-3	Energy intensity ratio	Pg. 65
GRI 305-1	Scope 1 - direct GHG emissions (CO2)	Pg. 65
GRI 305-2	Scope 2 - indirect GHG emissions (CO2)	Pg. 65
GRI 305-4	Greenhouse gas (GHG) emissions	Pg. 65
	intensity
Material Issue: Packaging
GRI 103-1	Explanation of the materials topic and	Pg. 58-60
	its Boundary
GRI 103-2	The management approach and its	Pg. 58-60
	components
GRI 103-3	Evaluation of the management	Pg. 58-60
	approach
RESPONSIBLE SUPPLY CHAIN
Material Issue: Sustainable Sourcing
GRI 103-1	Explanation of the materials topic and	Pg. 66-70
	its Boundary
GRI 103-2	The management approach and its	Pg. 66-70
	components
GRI 103-3	Evaluation of the management	Pg. 66-70
	approach
GRI 204-1	Percentage of purchase value spent on	Pg. 70
	local suppliers
SAFETY & WELL-BEING
Material Issue: Occupational Health and Safety
GRI 103-1	Explanation of the materials topic and	Pg. 71-76
	its Boundary
GRI 103-2	The management approach and its	Pg. 71-76
	components
GRI 103-3	Evaluation of the management	Pg. 71-76
	approach
GRI 403-1	Occupational health and safety	Pg. 71-76
(2018)	management system
GRI 403-2	Hazard identification, risk assessment,	Pg. 73
(2018)	and incident investigation
GRI 403-3	Occupational health services	Pg. 72
(2018)
GRI 403-4	Work participation, consultation, and	Pg. 72
(2018)	communication on occupational health
	and safety

BUILDING A SUSTAINABLE FUTURE

SPECIFIC DISCLOSURES

Profile Disclosure	Description	Reference page / Explanation
SAFETY & WELL-BEING
Material Issue: Occupational Health and Safety
GRI 403-5	Worker training on occupational health	Pg. 74
(2018)	and safety
GRI 403-6	Promotion of worker health	Pg. 75
(2018)
GRI 403-7	Prevention and mitigation of	Pg. 66-70,71-76,77-81
(2018)	occupational health and safety impacts
	directly linked by business relationships
GRI 403-9	Work-related injuries	Pg. 76
(2018)
GRI 403-10 (2018)	Work-related ill health	Pg. 76
Material Issue: Consumer Health and Safety
GRI 103-1	Explanation of the materials topic and	Pg. 77-81
	its Boundary
GRI 103-2	The management approach and its	Pg. 77-81
	components
GRI 103-3	Evaluation of the management	Pg. 77-81
	approach
GRI 416-1	Percentage of significant product and	Pg. 81
	service categories for which health
	and safety impacts are assessed for
	improvement
GRI 416-2	Total number of Incidents of non-	Pg. 81
	compliance concerning the health and
	safety impacts of products and services
Material Issue: Product and Service Labelling
GRI 103-1	Explanation of the materials topic and	Pg. 82-83
	its Boundary
GRI 103-2	The management approach and its	Pg. 82-83
	components
GRI 103-3	Evaluation of the management	Pg. 82-83
	approach
GRI 417-1	Type of product and service information	Pg. 83
	required by the organisation's
	procedures for product and service
	information and labelling
GRI 417-2	Total number of incidents of non-	Pg. 83
	compliance with regulations and
	voluntary codes concerning product
	and service information and labelling, by
	type of outcomes

Fraser and Neave, Limited

438 Alexandra Road

#20-00 Alexandra Point

Singapore 119958

Tel: (65) 6318 9393

Fax: (65) 6271 0811

www.fraserandneave.com

(Company Registration No. 189800001R) (Incorporated in Singapore)

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Fraser and Neave Limited published this content on 06 January 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 January 2020 02:17:05 UTC

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