This article first appeared in The Edge Malaysia Weekly on November 27, 2023 - December 3, 2023

For any business to thrive, sustainability must be a collective responsibility throughout the entire company.” - Tan

Fraser & Neave Holdings Bhd (F&N) won the gold award at The Edge Malaysia ESG Awards 2023 in the consumer products and services sector.

According to the company, this is a result of its comprehensive approach to sustainability. There are seven core areas in its sustainability framework, each with a defined approach and value.

“We made good progress on our commitment to provide healthier choices to consumers without compromising on taste. Close to two-thirds of our beverage and dairy product portfolio and more than 90% of our ready-to-drink products sold today are endorsed with the Healthier Choice Logo,” says Karen Tan, director of communications, corporate affairs and sustainability at F&N.

“In addition, we continue to spread hydration awareness and active lifestyle through 100PLUS and promote sports development in the country by partnering with the Football Association of Malaysia, Badminton Association of Malaysia and the National Sports Council, among others.”

F&N is also instilling environment awareness through its nationwide school recycling programme, and it is the first Malaysian company to back all the palm oil used in its products with RSPO credits, says Tan.

“In 2023, we utilised 60% certified sustainable palm oil. Our goal is to transition to 100% physically certified RSPO palm oil by 2025. All these efforts are underpinned by our robust governance structure and implementation framework, which have been instrumental in driving value for all stakeholders, including consumers, local communities and the environment,” adds Tan.

F&N runs recycling awareness campaigns for schoolchildren - Photo by F&N

In addition, the company launched key initiatives to include its suppliers and other stakeholders in this journey.

To begin with, it launched the F&N Business Partner Award Programme, which aims to enhance the service quality of the company’s suppliers and align them with F&N’s values and sustainability objectives.

“In Thailand, we continue to build the capability of more than 2,000 farmers who supply our dairy operations through the Farming Excellence System,” says Tan.

F&N is also committed to reducing its reliance on fossil fuels. It has the largest solar photovoltaic rooftop system in Malaysia, says Tan, with similar systems set up in Thailand. The company plans to explore more low-carbon initiatives.

Furthermore, F&N’s integrated farm embodies a “farm-to-bottle” model, reducing carbon emissions by producing fresh milk locally. Sustainable farming and green technology are central to this project, with a substantial RM1.5 billion investment planned for Phase 1. F&N also addresses climate change, biodiversity and human rights across its operations with stakeholders and all along the value chain, says Tan.

“For any business to thrive, sustainability must be a collective responsibility throughout the entire company. Therefore, from boots to boardroom, we promoted a greater understanding of ESG (environmental, social and governance) among all employees, including the board. At F&N, all employees have sustainability-related key performance indicators linked to their performance reviews,” she says.

“We leverage international indices and assessments such as FTSE4GOOD and S&P Corporate Sustainability Assessment to keep abreast of tightening regulations and stricter ESG disclosures.”

F&N aims to continue fostering public-private partnerships and engaging with stakeholders throughout the value chain for a greener future.

Beyond advocating for incentives to promote renewable energy adoption, “we also emphasise the need for building ESG capability, where government collaboration and higher learning institutions can play a pivotal role,” Tan adds.

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