Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Innovation
• Sustainable Sourcing
• Talent Management
• Market Presence
• Occupational Health and Safety
• Consumer Health and Safety
• Health and Nutrition
• Product and Service Labelling
• Creating Value for Society
• Water Stewardship
• Effluents and Waste
• Energy and Climate Change
• Route Planning
• Packaging

Environmental Achievements

• 14% reduction in water intensity ratio
• 5% reduction in solid waste intensity ratio
• 40% reduction in PET resin packaging material at Shah Alam plant
• 100% recycling rate of solid waste at Pulau Indah plant

Social Achievements

• Healthier choice options offered in 14 of 15 product categories
• Zero work-related fatalities in FY2018
• Employee-driven innovations totaling an estimated S$3M per annum

Governance Achievements

• Established Sustainability and Risk Management Committee (SRMC) and Sustainability Development Committee (SDC)

Climate Goals & Targets

Environmental Challenges

• Water stress in operating regions
• Supply chain disruptions due to climate events
• Plastic waste as a significant environmental issue

Mitigation Strategies

• Water efficiency measures (e.g., water recovery systems, rainwater harvesting)
• Business Continuity Plans for key supply chain risks
• Innovative packaging to reduce PET resin use
• Initiatives to increase recycling rates

Supply Chain Management

Supplier Audits: Annual audits

Responsible Procurement

• Supplier Performance Tracking Initiative
• Focus on local sourcing
• Emphasis on sourcing quality materials from suppliers with good environmental and social performance

Climate-Related Risks & Opportunities

Physical Risks

• Water stress
• Extreme weather
• Farming shortages

Reporting Standards

Frameworks Used: GRI Standards (Core Option)

Certifications: ISO 14001, OHSAS 18001, FSSC 22000, Halal

Sustainable Products & Innovation

• Healthier choice products with reduced sugar content
• Products with innovative, lighter weight packaging

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Protection
• Brand Building
• Community Engagement
• Healthier Products

Environmental Achievements

• EBML eliminated excess packaging from its products, including downsizing paper carton boxes and removing unnecessary packaging on merchandise.
• EBML's new boiler significantly reduced the plant’s energy consumption and carbon footprint.

Social Achievements

• F&N Singapore stepped up with food and product donations to the local community.
• 100PLUS held virtual workout sessions during the lockdown.
• F&N NUTRISOY launched a series of culinary sessions.
• F&N NUTRISOY continued its partnership with SHF.
• CHANG beer organized live screenings of the EPL (and virtual screenings during lockdown).

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Weaker performance in Malaysia due to COVID-19 pandemic and lockdowns impacting on-trade sales.
• Challenging market conditions in Singapore and Malaysia.

Mitigation Strategies

• Cost mitigating measures in Malaysia.
• Digital transformation and e-commerce store launch (F&N Life) in Malaysia.
• Marketing campaigns to maintain brand visibility and drive sales (e.g., GERAI RASA RAYA, STAY FIT).
• Product innovation (e.g., 100PLUS Zero, new OYOSHI Gold variants, F&N ICE MOUNTAIN sparkling water variants, F&N NUTRISOY Real Oats & Quinoa, F&N NUTRISOY Pandan, F&N FRUIT TREE FRESH Reduced Sugar range, F&N Sparkling Bandung).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• F&N ICE MOUNTAIN sustainable paper carton packaging.

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Subdued outdoor activities due to the COVID-19 pandemic
• Commodity price pressures
• Weaker Thai baht
• Slower domestic markets in Malaysia and Thailand
• Container shortages worldwide and spike in international freight charges
• Higher freight charges due to shortage of shipping containers

Mitigation Strategies

• Diversified product and geographical presence to mitigate slower domestic markets
• Maintaining export revenue, boosted by double-digit growth in Middle East and Africa markets
• Sharpening route-to-market and channel strategies
• Strengthening and scaling up ecommerce operations
• Acquisition of Sri Nona Companies to establish Halal food as a new pillar of growth
• Focusing on growing sales in existing export markets and expanding to new markets while adapting to pandemic constraints
• Safeguarding the wellbeing of employees, trade partners and community

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: MFRS 134 Interim Financial Reporting

Environmental Metrics

ESG Focus Areas

• Governance and Ethics
• Policy and Regulation
• Economic Performance
• Product Quality and Safety
• Product and Service Labelling
• Innovation
• Supply Chain Stewardship
• Nutrition
• Community Development and Inclusive Growth
• Human Rights
• Human Capital Development
• Employee Safety, Health and Well-being
• Energy and Climate Change
• Water Stewardship
• Waste Management
• Packaging
• Biodiversity

Environmental Achievements

• Energy intensity ratio reduced by 2% from a 2020 baseline
• Greenhouse gas emissions intensity ratio reduced by 5% from a 2020 baseline
• Reduced total solid waste generated by 14%
• Increased use of renewable energy (solar) estimated to reduce GHG emissions by over 8,900 MT each year
• Launched Green Lab, an eco-solutions manufacturing plant providing sustainable packaging solutions

Social Achievements

• Launched a number of new healthy beverages (e.g., F&N SEASONS Ice Lemon Tea Zero Sugar)
• Conducted a robust Human Rights assessment and rolled out the F&N Human Rights Policy
• Increased community engagement programs by 110% from 2020 baseline
• 43% reduction in Lost Time Injury Frequency Rate from a 2020 baseline year

Governance Achievements

• Refreshed 2022 Materiality Matrix and 2025 sustainability targets
• Implemented climate-related disclosures based on TCFD recommendations
• No substantiated bribery and corruption cases in FY2022

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions due to the Russia-Ukraine war and increased raw material costs
• Increased water intensity ratio by 3% from a 2020 baseline
• Total solid waste sent to landfill increased by 21% from a 2020 baseline

Mitigation Strategies

• Business Continuity Plan to minimize business operational interruptions
• Various water saving initiatives implemented at plants
• Ongoing campaigns to increase recycling rate and reduce waste sent to landfill
• Collaboration with suppliers to enhance water security and supply chain resilience

Supply Chain Management

Supplier Audits: Over 950 suppliers screened using environmental and social criteria, annual audits conducted

Responsible Procurement

• Supplier Code of Practice (SCOP) covering business ethics, environmental management, human rights, and occupational health and safety
• Sustainable sourcing of raw materials (e.g., RSPO certified palm oil, FSC certified paper)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity
• Extreme heat

Transition Risks

• Carbon pricing
• Low carbon land transport
• Reduction of virgin packaging
• Consumer demand for sustainably produced products
• Sustainable inks
• Reputation

Opportunities

• Cost savings from energy efficiency and renewable energy
• Alignment with consumer expectations for sustainable products

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD recommendations, SGX Listing Rules 711A and 711B

Certifications: FSSC 22000, Halal, ISO 14001, ISO 45001, FSC

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• SDG 2
• SDG 8
• SDG 9
• SDG 12

Contributions to SDGs through sustainability framework and targets, particularly towards SDG 2 (Zero Hunger), SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation and Infrastructure), and SDG 12 (Responsible Consumption and Production). Also contributes to SDG 1, 3, 4, 5, 6, 7, 10, 15, 16 and 17.

Sustainable Products & Innovation

• Low-carbon products certified by TGO
• Plant-based products
• Products with sustainable packaging

Awards & Recognition

• Runner up in the Most Transparent Company Award (Consumer Staples category) at the Securities Investors Association Singapore’s Investors’ Choice Awards 2021
• Platinum Award (for Best Sustainability Reporting) at the National Annual Corporate Report Awards 2021 (F&NHB)
• Prime Minister’s Industry Award 2021 in the category of Quality Management (F&NDT)
• Best Performing Company in Consumer Products & Services and Top Three Performers in ASEAN at The Edge Malaysia ESG Awards 2022 (F&NHB)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy
• Policy and Regulations
• Governance and Ethics
• Packaging
• Nutrition

Environmental Achievements

• Installation of solar panels at plants in Singapore, Malaysia, and Thailand, estimated to avoid over 13,000 MT CO2e annually.
• Implementation of an innovative heat recovery system in Thailand, reducing GHG emissions by around 650 MT CO2e per year.
• 25% of beverage and dairy packaging contains recycled materials (3% increase from 2020).

Social Achievements

• Launched healthy beverages like ÖMilk and 100PLUS Pro High Protein, with the latter receiving Healthier Choice Symbol recognition.
• Over 73% of RTD products in Singapore and Malaysia contain less than 5g of sugar per 100ml.
• Conducted Human Rights awareness training for over 350 employees.
• F&N Foods Pte Ltd ranked 63rd out of over 1,700 employers in Singapore’s Best Employers 2023 study.

Governance Achievements

• Enhanced climate-related disclosures, quantifying material climate-related physical and transition risks.
• F&NHB received the Platinum Award for Best Sustainability Reporting at the National Annual Corporate Report Awards 2022.

Climate Goals & Targets

Environmental Challenges

• Flooding, water scarcity, and carbon pricing pose climate-related risks.
• Total solid waste sent to landfill increased by 4% from 2020 baseline.
• Maintaining halal standards across the supply chain.

Mitigation Strategies

• Quantitative scenario analysis to assess financial impacts of climate risks.
• Investments in energy-efficient systems and renewable energy (solar panels).
• Implementation of a robust water recycling system in Thailand.
• Collaboration with suppliers to improve sustainability practices.
• Two-tier halal management structure and regular halal awareness training.

Supply Chain Management

Supplier Audits: 98% of key active suppliers complied with F&N’s Supplier Code of Practice.

Responsible Procurement

• Supplier Code of Practice (SCOP) covering business ethics, environmental management, human rights, and occupational health and safety.
• Sustainable sourcing of palm oil (100% RSPO certified).

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity

Transition Risks

• Carbon pricing

Opportunities

• Increased availability of low-carbon technologies
• Growing customer demand for sustainably produced products

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD, SGX

Certifications: FSSC 22000, Halal, ISO 22000, HACCP, PEFC Chain of Custody, FSC

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• SDG 2
• SDG 8
• SDG 9
• SDG 12

Contributions to SDGs through sustainability framework and targets, particularly in areas of food security, decent work, sustainable industrialization, and responsible consumption and production.

Sustainable Products & Innovation

• Carnation Extra Non-dairy Half Creamer (TGO Carbon Footprint Reduction Label)

Awards & Recognition

• Platinum Award for Best Sustainability Reporting at NACRA 2022 (F&NHB)
• Gold award for Consumer Goods & Services Sector and Top Three Performers in ASEAN at The Edge Malaysia ESG Awards 2022 (F&NHB)
• Halal Innovation Excellence Award at WHEA 2022 (F&NHB)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Innovation
• Supply Chain
• Brand Management

Environmental Achievements

• Deployment of a 10 MWp solar energy system across plants in Malaysia, replacing a significant portion of electricity needs with clean energy.
• Construction of a new manufacturing plant in Singapore with a 30% reduction in energy and water consumption.
• Integrated warehouse building in Shah Alam, Malaysia, improving storage efficiency and logistics, reducing carbon footprint.

Social Achievements

• Acquisition of Ladang Permai Damai Sdn Bhd, strengthening high-quality fresh milk supply and aligning with self-sufficiency goals.
• Integrated dairy farm in Gemas, Malaysia, projected to produce 200 million liters of fresh milk annually, stimulating local agriculture and creating jobs.
• Various sponsorships (HSBC Women’s World Championship, OCBC Cycle, Tour de France Criterium) reinforcing position as a champion of sports development.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Unfavorable foreign exchange rates significantly impacting financial performance.
• Inflationary pressures and a challenging market environment.
• Supply disruptions in Dairies Singapore during plant migration.
• Reduced share of profit from associated company in Vietnam.

Mitigation Strategies

• Effective cost management initiatives.
• Price increases in Dairies Thailand and Malaysia.
• Strategic restructuring initiatives targeting underperforming business entities within P&P segment.
• Cost optimisation to reinvest in the business and fortify brands.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Acquisition of Ladang Permai Damai Sdn Bhd for high-quality fresh milk supply.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: BCA Green Mark Platinum SLE award (Singapore plant)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 100PLUS Active
• OMILK (plant-based product)
• 100PLUS Hydration Bar and Slushie
• SUNKIST Tropical Orange ice confection
• Sustainable packaging solutions from Green Lab

Awards & Recognition

• BCA Green Mark Platinum SLE award (Singapore plant)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Waste Management
• Energy Efficiency
• Packaging
• Nutrition
• Human Rights
• Supply Chain Stewardship
• Employee Safety, Health and Well-being
• Community Development and Inclusive Growth
• Governance and Ethics
• Economic Performance
• Innovation

Environmental Achievements

• Avoided over 8,790 MT CO2e through rooftop solar panel installations.
• Achieved 25% recycled content in beverage and dairy packaging, ahead of 2025 target.
• Reduced total solid waste generated and solid waste sent to landfill by 4% and 33%, respectively, from a 2020 baseline.
• Reduced greenhouse gas emissions and energy intensity ratio by 13% and 2%, respectively, from a 2020 baseline.

Social Achievements

• F&N Foods Pte Ltd ranked 37th out of over 2,000 companies in Statista’s Singapore’s Best Employers 2024 study.
• F&N Holdings Bhd received the Top 50 Excellence Award at the National Corporate Governance and Sustainability Awards 2024 and the Gold Award for the Consumer Products & Services Sector at The Edge ESG Awards 2023.
• Launched innovative and healthier products, such as F&N MAGNOLIA Salted Caramel Low Fat Flavoured Milk and F&N FRUIT TREE FRESH Muscat Grape Juice Drink with Aloe Vera Bits.
• 76% of ready-to-drink products in Singapore and Malaysia contain less than 5g of sugar per 100ml.
• Expanded employee benefits to include mental wellness and alternative medicine.

Governance Achievements

• F&NHB achieved a commendable ESG rating of 4.5 out of 5.0 in the F4GBM Index for six consecutive years.
• Enhanced climate-related disclosures in line with TCFD recommendations, including quantification of a key climate-related opportunity.
• Introduced internal carbon pricing of SGD 35 per MT CO2e.

Climate Goals & Targets

Environmental Challenges

• Climate change related physical risks (flooding, water scarcity), transition risks (carbon pricing), and opportunities (low-carbon technologies).
• Supply chain disruptions.
• Meeting stakeholder expectations regarding sustainability.

Mitigation Strategies

• Implemented scenario analysis to quantify financial impacts of climate-related risks and opportunities.
• Developed a Group-level decarbonisation roadmap.
• Investing in renewable energy (solar panels) and energy efficiency initiatives.
• Introduced internal carbon pricing.
• Implementing measures to enhance resilience against flooding (flood barriers, pumps, drainage systems).
• Optimizing water circularity and improving water efficiency.
• Engaging with stakeholders to understand their concerns and expectations.

Supply Chain Management

Supplier Audits: Over 3,750 suppliers evaluated using social criteria; 98% of active key suppliers have accepted and comply with F&N’s Supplier Code of Practice

Responsible Procurement

• F&N’s Supplier Code of Practice

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water scarcity

Transition Risks

• Carbon pricing

Opportunities

• Low-carbon technologies (renewable energy)

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, TCFD

Certifications: FSSC 22000, Halal

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• SDG 2
• SDG 8
• SDG 9
• SDG 12

Contributions to SDGs 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 15, 16, and 17 are summarized in the report.

Sustainable Products & Innovation

• F&N MAGNOLIA Salted Caramel Low Fat Flavoured Milk
• F&N FRUIT TREE FRESH Muscat Grape Juice Drink with Aloe Vera Bits

Awards & Recognition

• Statista’s Singapore’s Best Employers 2024 (F&N Foods Pte Ltd)
• Top 50 Excellence Award at the National Corporate Governance and Sustainability Awards 2024 (F&N Holdings Bhd)
• Gold Award for the Consumer Products & Services Sector at The Edge ESG Awards 2023 (F&N Holdings Bhd)
• Gold award for Consumer Goods and Services Sector at The Edge Malaysia ESG Awards 2023 (F&NHB)

Environmental Metrics

ESG Focus Areas

• Environmental conservation
• Sustainability
• Inclusivity
• Human rights
• Community engagement
• Climate change

Environmental Achievements

• Reduced total solid waste generated and solid waste sent to landfill by 4% and 33%, respectively, from a 2020 baseline.
• Reduced greenhouse gas emissions and energy intensity ratio by 13% and 2%, respectively, from a 2020 baseline.
• 25% of beverage and dairy packaging contains recycled materials.
• 99% of total packaging is recyclable.
• 100% of annual palm oil usage covered by RSPO Certified Sustainable Palm Oil and RSPO Credits.
• One of the three founding members of the Singapore Beverage Container Recycling Scheme.

Social Achievements

• 25 annual community programmes.
• 76% of beverage and dairy products comply with Nutritional Guidelines and are healthier options with reduced sugar.
• 63% reduction in sugar index for beverage and dairy products in Singapore and Malaysia since 2004.
• At least one healthier option available in 14 out of 15 product categories.
• 100% of operations included in local community engagement, impact assessments, and development programs.
• Human Rights Risks Assessments conducted in key operations in Singapore, Malaysia and Thailand.
• Human Rights Policy developed in accordance with international human rights principles.
• 34% female representation in total workforce.
• 49% female representation in managerial positions.
• 35 training hours per employee in the Executive category and 13 training hours per employee for the Non-executive category.
• 16% reduction in Lost Time Injury Frequency Rate from a 2020 baseline year.

Governance Achievements

• F&NHB has been a constituent member of the F4GBM Index for six consecutive years, achieving a commendable ESG rating of 4.5 out of 5.0.
• F&NHB remained part of the F4GBMS Index for the fourth consecutive year.
• F&NHB was honoured with the Gold award for the Consumer Products and Services Sector at the Edge ESG Awards 2023.
• FNFS achieved 37th position among more than 2,000 companies in Singapore’s Best Employers 2024 study by Statista.
• Enhanced climate-related disclosures, in line with TCFD recommendations, to include the quantification of a key climate-related opportunity.
• Introduced internal carbon price of SGD 35 per MT CO2e to guide the evaluation of new business investments.

Climate Goals & Targets

Environmental Challenges

• Volatile economic climate
• Inflation
• Regional currency volatility
• Reduced print orders
• Planned discontinuation of unprofitable business units
• Weakened consumer sentiment in Indonesia
• Intense market competition
• Regulatory changes affecting F&N’s canned milk supply in Indonesia
• Suspension of livestock delivery for F&N AgriValley due to bird flu concerns.

Mitigation Strategies

• Prudent cost management
• Stringent cost controls
• Closure of non-viable units
• International expansion in Education and sustainable packaging divisions
• Focus on higher-margin, non-print offerings in Education
• Product innovation and consumer engagement
• Enhanced route-to-market strategies
• Digital initiatives
• Portfolio optimisation
• Strengthened marketing capabilities
• Talent development
• Exploring alternatives to mitigate the impact of bird flu suspension.

Supply Chain Management

Supplier Audits: Over 3,750 suppliers evaluated using social criteria; 98% of active key suppliers have accepted F&N’s Supplier Code of Practice

Responsible Procurement

• Supplier Code of Practice
• Halal Sourcing Partnership Programme

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy use

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SGX Listing Rules 711A and 711B, TCFD

Certifications: Halal Standard (or equivalent), FSSC 22000 (73% of facilities)

Third-party Assurance: LRQA

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 100PLUS Isotonic Slushy
• F&N ICE MOUNTAIN lychee sparkling water
• F&N NUTRISOY Fresh Soya Milk Kurogoma
• F&N SEASONS Zero Sugar Ice Lemon Tea
• F&N MAGNOLIA Cookies & Cream Low Fat Flavoured Milk
• F&N MAGNOLIA Salted Caramel Flavoured Milk
• F&N MAGNOLIA Salted Caramel Pasteurised Milk
• F&N MAGNOLIA Brown Sugar & Sea Salt Flavoured Milk
• 100PLUS PRO High Protein
• TAPPER Strong Beer

Awards & Recognition

• Gold Winner at Putra Brand Awards (100PLUS)
• Top 10 Raya TVCs of 2024 at the Expert Choice Awards (100PLUS)
• Gold award for Consumer Products and Services Sector at the Edge ESG Awards 2023 (F&NHB)
• 37th position in Singapore’s Best Employers 2024 (FNFS)