Fraser & Neave Holdings Bhd

Sustainability is embedded in F&N's culture. The Board has the overall responsibility for sustainability and incorporates ESG issues in the formulation of F&N Group's strategy. The Board's Charter sets out their responsibility to "include strategies on economic, environmental and social considerations underpinning sustainability." Hence, our Board ensures sustainability principles guide F&NHB's long-term business direction, and they have ultimate oversight of all sustainability issues.

Our Board's Sustainability and Risk Management Committee (SRMC) ensures sustainability risks and opportunities are considered at the highest level of the F&N Group by providing oversight and by approving strategic initiatives and policies for the sustainability agenda of the company. The SRMC meets quarterly and receives regular updates on the Group's sustainability agenda with the following members: Madam Tan Fong Sang (Chairperson), Dato' Jorgen Bornhoft (member), Mr. Hui Choon Kit (member) and Puan Aida binti Md Daud (member). At the board level, the SRMC maintains a close relationship with the Audit Committee. The Audit Committee assists the Board in reviewing and monitoring the integrity towards the Group's reporting process, the system of internal controls, audit process and compliance with legal and regulatory matters. [...] Headed by the Chief Executive Officer (CEO), the F&NHB Sustainability Management Committee (SMC) then translates the overall direction into specific policies and goals for functions. The SMC team works in alignment with the Sustainability Development Committee (SDC) at the F&N Group level, headed by the CEO of Non-Alcoholic Beverages, Fraser & Neave Limited. The team comprises Chief Executive Officers and senior executives across various functions for considering, planning and embedding sustainability development matters.

SMC is supported by the Sustainability Development Working Team (SDWT), which consists of cross-functional representatives who take on the various roles of the Sustainability Reporting Secretariat, Pillar Heads and Sustainability Initiative Champions, and Data Owners. Together, they monitor the progress towards designated goals, drive initiatives at an operational level, identify challenges in performance and gather data for reporting.

###### TCFD & CLIMATE RISK MANAGEMENT UPDATES

**F&N CLIMATE GOVERNANCE**

Recognising F&N's roles and responsibilities in driving climate action and the shift to a low-carbon economy and society, climate-related responsibilities are integrated into our governance structure across the Board of Directors (Board), Board Committees, Sustainability-related Committees and working teams.

The Board oversees management performance, sets corporate strategy, and ensures stakeholder interests are considered. The Board SRMC provides oversight to the Board and guidance to the working groups on implementing of climate-related initiatives.

To ensure accountability, F&N links management and employee performance to the F&N Group sustainability targets related to environment, energy and water stewardship, with 5% of their incentives linked to their sustainability-related performance.

A structure of these dedicated roles and responsibilities of the Board of Directors, Board-level committees, and management functions are described as below:

**F&N**
**Governance** **Meeting**
**Functions** **Climate-Related Roles & Responsibilities** **Frequency**

**Board of**
**Directors**

**Board Committee:**
**Sustainability &**
**Risk Management**
**Committee (SRMC)**

**Board Committee:**
**Audit Committee**
**(AC)**

**Sustainability**
**Management**
**Committee**
**(SMC)**

**Sustainability**
**Development**
**Working Team**
**(SDWT)**

**Quarterly**
**basis**

**Quarterly**
**basis**

**Quarterly**
**basis**

**Monthly**

**Ad-hoc**

- Oversees material sustainability-related topics, including environmental and climate-related risks and opportunities, as part of F&N Group's overall strategy planning and risk management.

- Approves F&N climate-related goals, targets, strategy and management's plans, according to the risk appetite and risk tolerance of the Group, in pursuit of its strategic objectives.

- Approves sustainability report which includes climate-related disclosures and metrics.

- Supports the Board in monitoring and reviewing key sustainability and climate-related risks and opportunities and provides strategic direction in managing aforementioned risks as part of the Group's Enterprise Risk Management (ERM) framework.

- Ensures sustainability and climate-related risks and opportunities are escalated and considered at the Board level.

- Guides the development of risk and sustainability frameworks, policies, and guidelines to ensure that sustainability and climate-related issues, are effectively managed and integrated into business operations and corporate objectives.

- Endorses sustainability report which includes climate-related disclosures and metrics.

- Assists the Board in reviewing and monitoring the integrity of the Group's sustainability and climate reporting process, the system of internal controls, audit process and compliance with applicable legal and regulatory requirements.

- Reviews key risks and recommendations from the Board SRMC, including sustainability and climate-related matters, and advise the Board annually.

- Headed by the CEO, the F&NHB SMC translates the overall direction into specific policies and goals for functions.

- The SMC team works in alignment with at the F&N Group level, headed by the CEO, F&N Group.

- Identify and evaluate material ESG topics - including climate-related risks and opportunities, and the progress of climate-related risk mitigation measures.

- Review and validate climate scenario analysis, risk assessment and disclosure in alignment with TCFD framework and make recommendations to Board SRMC.

- Monitor, track and report progress of the Group's sustainability and climate-related strategies, initiatives, and targets to the Board SRMC.

- Consist of cross-functional representatives from each Business Unit who take on the role of Sustainability Reporting Secretariat, Pillar Heads and Sustainability Initiative Champions, and/or Data Owners.

- Develop sustainability and climate-related projects and initiatives under the five pillars of F&N Climate Strategy (e.g. energy efficiency, renewable energy, carbon reduction, route planning and exposure to climate change risks).

- Engage internal and external stakeholders to drive the implementation of sustainability and climate-related strategy at an operational level.

- Collate and analyse primary inputs from Data Owners of respective operational units to track progress towards the Group's sustainability and climate-related goals; and prepare periodic reports to F&N Group's SDC and F&NHB SRMC.

**Risk**
**Management**
**Team**

- Risk discussion with internal and external stakeholders as part of the risk management system. **Quarterly**
**basis**

F&NHB SRMC is the board level committee responsible in overseeing sustainability-related matters and approving all sustainability related strategic initiatives and policies while considering the related risks and opportunities in the process. SRMC meets quarterly to provide regular updates on Group's sustainability agenda. The SRMC meets quarterly and receives regular updates on the Group's sustainability agenda with the following members: **F&NHB Sustainability & Risk Management** **Committee (SRMC)** **Chairman** **Madam Tan Fong Sang** **Members** **Dato' Jorgen Bornhoft** **Mr. Kosit Suksingha** (Alternate Director: Mrs. Tongjai Thanachanan) **Dato' Ng Wan Peng** SRMC also works closely with Audit Committee. The Audit Committee is responsible to review and monitor the integrity of the Group's reporting process, audit process, internal controls system while ensuring the compliance with legal and regulatory matters Headed by the Chief Executive Officer (CEO), the F&NHB Sustainability Management Committee (SMC) is responsible in executing the Group's sustainability direction with supporting initiatives, policies and goals. The SMC team works in alignment with the Sustainability Development Council at the F&N Group level, headed by the CEO, F&N Group. The team comprises of CEOs and senior executives across various functions for considering, planning and embedding sustainability development matters.

Sustainability is embedded in F&N's culture. The Board has the overall responsibility for sustainability and incorporates ESG issues in the formulation of F&N Group's strategy. The Board's Charter sets out their responsibility to "include strategies on economic, environmental and social considerations underpinning sustainability." Hence, our Board ensures sustainability principles guide F&NHB's long-term business direction, and they have ultimate oversight of all sustainability issues. Our Board's Sustainability and Risk Management Committee (SRMC) ensures sustainability risks and opportunities are considered at the highest level of the F&N Group by providing oversight and by approving strategic initiatives and policies for the sustainability agenda of the company. The SRMC meets quarterly and receives regular updates on the Group's sustainability agenda with the following members: Madam Tan Fong Sang (Chairperson), Dato' Jorgen Bornhoft (member), Mr. Hui Choon Kit (member) and Puan Aida binti Md Daud (member). At the board level, the SRMC maintains a close relationship with the Audit Committee. The Audit Committee assists the Board in reviewing and monitoring the integrity towards the Group's reporting process, the system of internal controls, audit process and compliance with legal and regulatory matters. [...] Headed by the Chief Executive Officer (CEO), the F&NHB Sustainability Management Committee (SMC) then translates the overall direction into specific policies and goals for functions. The SMC team works in alignment with the Sustainability Development Committee (SDC) at the F&N Group level, headed by the CEO of Non-Alcoholic Beverages, Fraser & Neave Limited. The team comprises Chief Executive Officers and senior executives across various functions for considering, planning and embedding sustainability development matters. SMC is supported by the Sustainability Development Working Team (SDWT), which consists of cross-functional representatives who take on the various roles of the Sustainability Reporting Secretariat, Pillar Heads and Sustainability Initiative Champions, and Data Owners. Together, they monitor the progress towards designated goals, drive initiatives at an operational level, identify challenges in performance and gather data for reporting.