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F&N Sustainability Report 2018

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F&N Sustainability Report 2018 BUILDINGBUILDING A SUSTAINABLE A FUTURE SUSTAINABLE FUTURE SUSTAINABILITY REPORT 2018 i VISION CONTENTS BUILDING A SUSTAINABLE FUTURE To be a stable and sustainable Food & Beverage leader in the SUSTAINABILITY AT F&N F&N’s portfolio of diversifi ed products bring ASEAN region. 01 Sustainability people together across generations and Highlights 2018 communities. As we continue our journey to 02 Board Statement MISSION 03 Message from Chairman become a food and beverage leader in ASEAN, of SDC the Group remains committed to building great To be ASEAN’s leading owner and provider of quality and 04 About this Report brands and delivering high-quality, delicious 06 About F&N innovative products that consumers choose and trust. 11 Our Sustainability products to meet consumers’ nutritional needs. To support our mission, Approach Through our brands and investments in our we are guided fi rmly by our 20 Our 2020 Targets and communities, we will continue to make F&N an commitment to create value Progress essential part of consumers’ lives for even more for our stakeholders by ensuring that our corporate DELIVERING VALUE THROUGH SOCIAL generations to come. actions positively impact COLLABORATION, HUMAN the socio-economic and CAPITAL DEVELOPMENT environmental factors. AND INNOVATION 22 Economic Value 23 Economic OUR MAIN BRANDS Performance 24 Innovation CORPORATE PROFILE 31 Empowering Our People 32 Talent Management Established in 1883, Fraser and Neave, Limited (“F&N”) is a leading Southeast Asia Consumer Group with expertise and 40 Enhancing Social prominent standing in the Food & Beverage and Publishing & Well-Being Printing industries. Leveraging its strengths in marketing and 41 Creating Value for distribution, research and development, brands and fi nancial Society management, F&N provides key resources and sets strategic 50 Health and Nutrition directions for its subsidiary companies across both industries. MANAGING IMPACTS AND CONDUCTING BUSINESS IN Listed on the Singapore stock exchange, F&N ranks as one of the A RESPONSIBLE MANNER most established and successful companies in the region with an impressive array of renowned brands that enjoy strong market 52 Eco-Effi ciency leadership. F&N is present in 11 countries spanning Asia Pacifi c, 54 Water Stewardship Europe and the USA, and employs over 7,700 people worldwide. 57 Effl uents and Waste 61 Packaging 63 Energy and Climate Change 68 Responsible Supply Chain 69 Sustainable Sourcing 73 Safety and Well-Being 74 Occupational Health In line with the Group’s efforts towards greater environmental conservation, we have adopted an and Safety electronic transmission for our Annual Report and Sustainability Report. 78 Consumer Health and Safety The electronic version of the Annual Report is available on Fraser and Neave, Limited’s website 82 Product and Service (fraserandneave.com/investor-relations/annual-reports). Shareholders and other interested parties Labelling who wish to receive a printed copy may order it through the website (fraserandneave.com/contact- us/request-annual-report), e-mail ([email protected]) or telephone ((65) 6318 9393). APPENDIX 84 Performance Summary F&N FY2018 Sustainability Report is only available in electronic version, and is available for download at fraserandneave.com/investor-relations/corporate-sustainability. 87 GRI Standards Content #GOPAPERLESS Index BUILDING A SUSTAINABLE FUTURE SUSTAINABILITY HIGHLIGHTS 2018 Sugar level DECREASED 14% 31% REDUCTION to 6.0g/100ml 31% ZERO in water intensity WORK-RELATED ratio* FATALITIES IN FY2018 8,600 Healthier choice options offered in RSPO 5% credits purchased REDUCTION 14 OF in solid waste OUR 15 intensity ratio* product categories Employee-driven innovations totaling to an estimated 40% S$3M REDUCTION per annum in PET resin packaging material at Shah Alam plant GROWTH *at the group-level, compared to FY2017 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES SUSTAINABILITY REPORT 2018 BOARD STATEMENT SUSTAINABILITY OVERVIEW with an aim to minimise risks This is the second year we AND GOVERNANCE for society, environment and are reporting our sustainability As one of the leading to ensure longevity of our performance in accordance consumer groups in SEA, Company. Similarly, we identify with the Global Reporting the Board of Fraser and business opportunities to Initiative (“GRI”) framework Neave, Limited (“F&N” or ensure we are sustainable and in compliance with the “Group”) recognises for the long-term. the Singapore Exchange’s the great responsibility the (“SGX”) listing rules. We have Group has in protecting the At F&N, the Board continues transitioned from the GRI-G4 interest of future generations. to take the lead in F&N’s guidelines, used in our previous The Board believes that acting sustainability direction. It has sustainability report for FY2017, responsibly is the only way to tasked the newly reconstituted to the GRI Standards. In our achieve a balance between Sustainability and Risk FY2017 inaugural report, profitable long-term growth Management Committee we described F&N’s legacy of and protecting our planet (“SRMC”) with responsibility ESG stewardship, set targets and people. for steering our company- and provided a report card wide sustainability on our sustainability efforts. For many years, the Board strategy. The Sustainability This year, we focus on the has anchored sustainability Development Committee progress we have made during in its strategy. This is in (“SDC”), which is made the past year. recognition that the Group’s up of business CEOs and success is measured not only representatives from senior Following the materiality review on its economic achievements, management across the F&N conducted last year, we have but just as important, Group, supports the SRMC, delegated responsibility to its environmental and social and monitors the progress of the SRMC to consider and successes. Guided by our sustainability reporting re-validate the ESG factors that sustainable business practices, initiatives. During the year, are of concern to stakeholders we conduct our business the Board maintained and significant to F&N’s oversight over the SRMC and business. During the year, SDC, managing sustainability further improvements have risks and opportunities, been achieved on several while ensuring all environment, targets including our water social and governance (“ESG”) and solid waste intensities. matters significant to our business are aligned with As we continue to embark our Vision 2020. on the sustainability journey, we remain committed to building a responsible business that delivers sustainable value to our stakeholders over the long-term. 02 BUILDING A SUSTAINABLE FUTURE MESSAGE FROM CHAIRMAN OF SDC to have made a positive part in global efforts to reduce contribution for the past 135 GHG emissions. For instance, years, and fully appreciates we are on track to purchase how fi nancial and non-fi nancial RSPO credits for 100% of our success are complementary: palm oil usage by the year we take our responsibility to 2020. make a positive impact in the future very seriously. F&N places great emphasis on being a key part of As you will see on page 15, prosperous communities Consumer Health & Safety in which we operate. This is F&N’s most important includes hiring locally and sustainability topic. We empowering our talent, and understand that the role our also sharing happiness and products play in people’s daily helping vulnerable members lives and activities have been of our communities, wherever evolving. People are now more we can, to make a difference. health conscious and pay more It is reassuring to witness attention to the health benefi ts the enthusiasm for F&N’s and nutrition, ingredients sustainability journey and sugar content in their from employees at all levels. food and beverages. We have F&N’s success is built from listened to our consumers and our own fi nancial performance deliberated on how we can and long-term profi tability is better adjust our products to only possible when we protect accommodate their specifi c it through our actions on the Mr Lee Meng Tat needs and requirements. environment and society. Chairman of Sustainability Development Committee The sugar content in our products continues to fall, F&N is working to collect and I am proud that we now consistent sustainability offer healthier choice options reporting indicators, which will This is F&N’s second in 14 out of our 15 product allow stakeholders to analyse sustainability report, and I categories. changes in our performance am delighted to be able to over time and facilitate introduce the progress we have One of the highlights of the comparison with peers. made on our sustainability year for me is seeing the The use of the Global We now offer journey over the past year. bottom-up and innovative Reporting Initiative Standards healthier choice F&N’s vision is to be a stable ways in which F&N employees is essential for this, and and sustainable Food & are fi nding solutions to we are also taking steps to options in 14 out Beverage leader in the ASEAN environmental issues, such as progressively integrate the of our 15 product region, and this report sets out water use and waste reduction. United Nation’s Sustainable many of the ways in which we Our “Green Carnivals” and Development Goals (“SDGs”) categories. deliver value and care for our “Waste to Wealth Campaign” into our reporting and strategy. shared planet. have raised awareness of environmental stewardship We are grateful for your This report has been prepared and led to direct performance continued support, and hope in accordance with the Global improvements. 2018 has that this report gives you an Reporting Initiative Standards been designated as the “Year insight into F&N’s efforts to (Core), which represent global of Climate Change” by the be a sustainability leader in best practice in sustainability Singapore government and we ASEAN and beyond. reporting. F&N is proud are determined to play our 03 FRASER AND NEAVE, LIMITED & SUBSIDIARY COMPANIES SUSTAINABILITY REPORT 2018 ABOUT THIS REPORT WELCOME TO THE F&N 1.
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