Prime Minister’s Hibiscus Award Recognises F&NHB For Environmental Stewardship

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Malaysia, 9 April 2021 – Fraser & Neave Holdings Bhd (“F&NHB” or “the Group”) bagged three awards at the prestigious 2019/20 Prime Minister’s Hibiscus Award which exemplifies the Group’s commitment to driving sustainable development through the acceleration of environmental practices in its daily manufacturing operations.

The Group, through F&N Dairies Manufacturing Sdn Bhd in Pulau Indah grabbed its second Exceptional Achievement Award at this year’s Prime Minister’s Hibiscus Award after winning it for the first time in 2017. F&N Dairies Manufacturing Sdn Bhd also took home the State Award (Selangor) while F&N Beverages Manufacturing Sdn Bhd in Shah Alam received the Notable Achievement Award for the first time at this year’s ceremony.

The three wins at the 2019/20 Prime Minister’s Hibiscus Award reflect F&NHB’s position as a leading food and beverage player in Malaysia that is dedicated to driving quality, safety and environmental stewardship at its facilities as the Group remains steadfast in its commitment to sustainability.

According to F&NHB Chief Executive Officer, Lim Yew Hoe, sustainability has always been at the heart of the Group’s operations as it aims to create positive impacts on the environment and the local communities, in line with its slogan of “Pure Enjoyment, Pure Goodness”.

“The global disruption caused by COVID-19 has affected the environment and people’s livelihoods. Hence, it is crucial to address and manage these environmental and socio-economic risks to enhance the well-being of our stakeholders, including employees, suppliers, customers and the community at large,” he said.

F&N Dairies Manufacturing Sdn Bhd and F&N Beverages Manufacturing Sdn Bhd’s achievements exhibit their roles in advancing environmental management practices to the highest level of excellence. The two subsidiaries won the three awards after meeting the 2019/20 Prime Minister’s Hibiscus Award’s strict assessment criteria including leadership, priority and commitment; managing environmental issue; training and communication; legal and other compliance; environmental emergencies; employee participation; supply chain; environmental social programme; environmental accounting; eco-design; and carbon footprint.

“On behalf of F&NHB, I am truly honoured for the recognition from the Prime Minister’s Hibiscus Award and would like to thank our employees, especially the team at Shah Alam and Pulau Indah plant for their support and efforts in embracing and implementing good environmental practices in the workplace. This achievement is a stepping stone for us to create innovative solutions to tackle environmental sustainability challenges during these unprecedented times,” Lim added.

In line with its commitment to safeguarding the environment that it operates in, F&NHB has invested RM30 million in energy conservation which includes 10MWp solar roof projects at its plants in Shah Alam, Pulau Indah and Bentong. The Group aims to replace at least 20 per cent of its total energy requirement in Malaysia with clean energy by 2022 to increase energy efficiency and reduce carbon emission. F&NHB commissioned its first solar photovoltaic (PV) system at the Rojana plant in Thailand in April 2020. Once the solar roof projects are completed this year, the three plants will generate clean energy equivalent to the electricity consumption of 3,700 typical households in the country.

Over the past five years, F&NHB has invested RM800 million in capex, in which a large part of it is dedicated to achieving operational and cost efficiencies through economies of scale and shortening the route to the different markets. This include F&NHB’s new warehouse in Shah Alam and the Regional Distribution Centre (RDC) in Rojana, Thailand, both expected to be operational in the second quarter of 2021, will help reduce shunting and double handling between its plants and third-party warehouses. The installation of Automated Storage and Retrieval System (ASRS) at both warehouses will almost eradicate the use of forklifts, thus cutting F&NHB’s fuel usage and greenhouse gas emission.

The Prime Minister’s Hibiscus Award is the premier private sector environmental award for business and industry in Malaysia. The Award acknowledges the achievements of top industry players in their efforts towards environmental excellence and sustainable development.