SUSTAINABILITY REPORT 2020 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.

ABOUT US

Established in 1883, F&N is a leading Southeast Asian 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 12 countries spanning Asia Pacific, Europe and the USA, and employs over 7,700 people worldwide. 01

32–56 57–89 Contents Delivering Value Managing Impacts and through Social Conducting Business in a Collaboration, Human Responsible Manner MESSAGE FROM Capital Development 58 Eco-efficiency and Innovation 59 Water CHAIRMAN OF SDC 33 Driving Economic Stewardship Value 62 Effluents & 05 33 Economic Performance 65 Packaging 34 Innovation 69 Energy & 38 Empowering Our Climate Change People 74 Responsible Supply 38 Talent Chain Management 74 Sustainable 47 Market Presence Sourcing 48 Enhancing Social 78 Safety and Well-being Well-being 78 Occupational 02–31 48 Creating Value Health and for Society Safety Sustainability at F&N 83 Consumer 02 2020 At A Glance Health and 04 Board Statement Safety 05 Message from 89 Product and Chairman of SDC Service Labelling 08 About This Report 10 This is F&N 16 Our Sustainability Approach 90–105 26 Circular Economy Other Information 27 Response to 90 Performance COVID-19 Summary 29 Sustainability 100 Independent Target and Progress Assurance Statement Summary 102 GRI Standards Content Index

#GOPAPERLESS

1 In line with the Group’s efforts towards greater environmental conservation, we have elected for electronic transmission of our Annual Report and Sustainability Report. The electronic version of our 2020 Annual Report is available on Fraser and Neave, Limited’s website (www.fraserandneave.com/investor-relations/annual-reports). Shareholders and other interested parties who wish to receive a printed copy may order it through the website (www.fraserandneave.com/contact-us/request-annual- report), e-mail ([email protected]) or telephone ((65) 6318 9393). Our FY2020 Sustainability Report is only available in electronic version, and can be downloaded at www.fraserandneave.com/investor-relations/corporate-sustainability. 2 Unless specifically stated otherwise, all figures in this Sustainability Report ear quoted in Singapore Dollars. 3 Due to rounding, numbers and percentages in this document may not always add up precisely to the totals or absolute figures stated. 02 Fraser and Neave, Limited & Subsidiary Companies Sustainability Report 2020

Sustainability at F&N

• Met or exceeded 5 out of 10 (50%) of our 2020 sustainability targets

Effluents and Waste Talent Management Reduce solid waste Average of 16 and intensity by 5% by 2020 10 training hours for Executive and Non- Sustainable Sourcing executive employees Purchase of RSPO respectively Credits for 100% of 2020 annual palm oil usage Creating Value for Society Innovation Continuously Continuously invest in provide outreach AT A product and process and engagement innovation programs across Singapore, Malaysia and Thailand GLANCE

• External assurance done for SR2020 Driving Economic Value

• 17 new products • 25.9% reduction (beverages and dairies) in Packaging Index introduced since FY03/04

• Cost savings of about THB40 million (SGD1.8 million) through employee-driven projects in Thailand

Empowering Our People

• > 7,700 • 44% female • 26.23 training hours • 99% of senior employees representation per employee for management hired in total managerial executive category and from local community positions 12.57 training hours (100% in Singapore, per employee for • 38% female 100% in Thailand and non-executive category 98% in Malaysia) representation in total workforce 03

Enhancing Social Well-being

• 100% of operations • Waste Bank and • Support to more involve local community Project at Wattanodtia School than 30 beneficiary engagement, impact assessment and Watkokmayom School with groups for COVID-19 and development programmes more than 150 students

Eco-efficiency

• 46.6% reduction in solid waste intensity ratio since 2017

Safety and Well-being

• 56% reduction in Sugar Index (2004-2020) Responsible • At least one healthier choice option in 14 out of 15 product categories Supply Chain

• >35% of the Ready-To-Drink (“RTD”) products sold are healthier options • Engagement with > 4,700 global and local suppliers • 88 Healthier Choice Symbol/Logo on certified products • Purchased Roundtable on Sustainable Palm Oil (“RSPO”) credits for 100% of annual palm oil usage 04 Fraser and Neave, Limited & Subsidiary Companies Sustainability Report 2020

Board Statement

Overview of Sustainability at F&N targets were finalised and approved by the SRMC in The Board is pleased to present the Fraser and Neave, September 2020. F&N will share more details in the next Limited (“F&N” or the “Group”) Sustainability Report issue of the F&N Sustainability Report. (‘Report’) covering the period from 1 October 2019 to 30 September 2020. This Report is prepared in accordance COVID-19 Pandemic with the internationally recognised Global Reporting Initiative The COVID-19 pandemic has disrupted lives and created (“GRI”) Standards (Core) which is in compliance with the unprecedented challenges for businesses worldwide. Singapore Exchange’s (“SGX”) Listing Rules 711A and 711B. Business interruption arising from supply chain disruption, The Report encapsulates the Group’s overarching approach temporary closures of manufacturing plants, reduced to sustainability. In this Report, we share how the Group personnel, etc. has tested the quality of business continuity integrates key Environmental, Social and Governance (“ESG”) framework, policies and procedures. During the course of issues in its strategies, how the Group manages impacts this year, F&N has adapted and implemented a COVID-19 and risks associated with these issues as well as its progress business continuity plan (“BCP”) to ensure that we have towards its 2020 sustainability targets. appropriate systems and procedures in place within the Group to specifically address the impact of the pandemic on business Sustainability Governance operational risks. The Board has overall responsibility for sustainability and incorporates ESG issues in the formulation of F&N’s strategy. At F&N, protecting the health and safety of our workforce While it takes the lead in the Group’s sustainability direction, has always been the top priority. As we navigate these the Sustainability and Risk Management Committee (“SRMC”) unprecedented times, we continue to take steps to is responsible for steering the Group’s sustainability efforts. communicate with our staff and connect them with resources The SRMC is supported by the Sustainability Development that support their health and well-being. We continue to Committee (“SDC”), which is chaired by Mr Lee Meng Tat, actively address evolving issues and provide guidance to Chief Executive Officer, Non-Alcoholic Beverages and our staff consistent with local government regulations. comprises business Chief Executive Officers and senior Social