Our strategy

Performance
summary 2020

Two employee and one contractor fatalities; lost-time injury frequency rate of 0,34 (2019: 0,38)
R12 billion spend on BBBEE verified suppliers
R32 million committed to socio-economic development
105 648 high-quality, nutrient dense and fortified food packages distributed
4,2% reduction in total scope 1 GHG emissions (8,2% reduction in emissions intensity) year-on-year
8,8% reduction in water usage (5,9% reduction in intensity) year-on-year

Sustainable future

The sustainability report for 2020 is available at www.tigerbrands.com and includes comprehensive and detailed disclosures with regards to our sustainable future strategic pillar.

Sustainable company, community and planet

To deliver on our core purpose of nourishing and nurturing more lives every day, our sustainable future strategic objective comprises three clear focus areas: health and nutrition; enhanced livelihoods; and environmental stewardship. These are underpinned by our critical anchors relating to: ethical behaviour; purpose-led culture; food safety and quality; ethical supply chain practices; safety, health and environment; responsible marketing; and transparency, partnerships and stakeholder responsiveness.

Health and nutrition

We have committed to enabling consumers to improve their health and wellbeing by providing food products that are more nutritious and affordable, developing best-in-class nutritional standards, and leveraging our brand and marketing activities to promote consumer nutrition. In driving progress on these commitments, we have updated our nutritional standards against global guidelines, introduced a three-tier categorisation of our products using these guidelines, and begun to assess our product range against these criteria. We have begun implementation of a product lifecycle management system which will assist us in establishing a baseline and setting targets for more nutritious products as a percentage of our total portfolio. We launched several new, more nutritious and healthier product lines in our Snack, Baby and Personal Care categories, reduced sugar in our Bakery, Cereals and Beverages portfolios, and voluntarily enriched some core products with micronutrients commonly deficient in South African diets. We introduced clear and simple consumer-relevant health claims in various brands, have begun the process of including portion control messaging on the back of packs in Snacks & Treats, and participated in a consultative process on the adoption of progressive front-of-pack food labels.

Enhanced livelihoods

We have committed to improving the livelihoods of thousands of people by providing opportunities across our value chain for inclusive economic participation, including the provision of financial and non-financial support to black-owned and black women-owned enterprises and smallholder farmers, through our supplier and farmer development programmes, and preferential procurement policies. In addition, we contribute at least 1,5% of net profit after tax annually, towards socio-economic development activities that promote sustainable thriving communities.

This year we launched the Dipuno Enterprise and Supplier Development Fund, committing R100 million in investment by 2025 to black-owned and black women-owned small enterprises and smallholder farmers. An initial capital investment of R45 million was made to the Dipuno Fund to provide loans and technical support to beneficiaries, and to provide for a small operating budget.

We have since approved projects to the value of R12 million and disbursed R8 million, with a further R15 million worth of applications under review. Towards our target of facilitating the creation of 1 000 new jobs, we have established our Smallholder Farmer Programme and Agriculture Aggregator Model to support small black and black woman-owned farming and agri-processing enterprises. Since its establishment last year, our agriculture aggregator model has supported 50 emerging entrepreneurs through business incubation training and created 100 new jobs in the small farmer sector.

In line with our recently revised socio-economic development strategy, and as part of our response to the Covid-19 pandemic, we invested R32 million on community development initiatives. During the year, we achieved several milestones including: distributing over 93 000 high-quality, nutrient-dense and fortified food packages; reaching 30 000 direct and indirect beneficiaries each month through the Tiger Brands food and nutrition support programme; and training almost 600 community members in food gardening and community skills development. In addition, 12 648 food packages were distributed to vulnerable communities during the various stages of lockdown.

Environmental stewardship

Recognising the significant environmental impact of the agri-food value chain, both globally and nationally, we have committed to improving our environmental performance by implementing innovative solutions that optimise energy and water consumption in our operations, reduce the negative impacts of packaging, and minimise waste, effluent and emissions. We are exploring opportunities for circular economy initiatives that stimulate sustainable economic opportunities, as well as leveraging our brand and marketing to inspire positive behaviour change in consumers.

We made further progress this year in reducing the impact of our operations, focusing on the most material issues: improving energy and water efficiency, reducing greenhouse (GHG) gas emissions, and striving for zero waste to landfill operations. As a result of various energy efficiency measures, we achieved an absolute energy reduction of 5,3%, while absolute Scope 1 GHG emissions were down 4,2% year-on-year. We have undertaken industrial water-efficiency assessments and installed smart metering systems at our most water-intensive operations, contributing to an 8,8% reduction in total water use. As part of our drive to a circular economy, we have entered into various industry partnerships this year aimed at “closing the loop” with both food and packaging waste, and we have committed to achieving the targets in the SA Plastics Pact, launched in January 2020.

Occupational health and safety

Ensuring zero injuries and delivering strong behavioural safety, health and security performance through visible, felt leadership is a top priority. We have a holistic health and safety programme with clear roadmaps and deliverables. This is supported by a behavioural safety programme that drives leadership accountability and responsibility, and effective auditing to ensure that process safety management is implemented properly. Despite our best efforts, we are saddened to report that in this fiscal year, two employees and one contractor lost their lives while working for Tiger Brands. As is mandatory, our operations carry out a detailed investigation for every fatality, involving a multi-disciplinary team and senior management. This year, multiple behavioural safety initiatives were delivered at our operations, which resulted in an improvement of our recordable injury rate. As at the end of September 2020, our lost-time injury frequency rate (LTIFR) improved to 0,34 from 0,38 in 2019. Despite the improvement, it is evident that we need to work harder, and so we continue to deliver capacity-building and safety initiatives with the aim of establishing and embedding a safety culture across the organisation. In addition to our extensive response to mitigating the health impacts of the Covid-19 pandemic, we continued our monitoring and management reporting on critical health issues, conducted site occupational hygiene surveys and health risk assessments, ran various employee awareness raising campaigns, and delivered wellness support to employees.

Transparency, partnerships and stakeholder responsiveness

Recognising the importance of transparency and partnerships, we are committed to playing an active role in industry forums to help shape sustainable consumption standards, tools and best practices. We are a member of industry bodies such as the National Business Initiative (NBI), Manufacturing Circle, Business Leadership South Africa, Consumer Goods Council of South Africa (CGCSA), South African Agricultural Processors Association (SAAPA), South African Fruit and Vegetable Export Council (SAFVEC), South African Fruit Juice Association (SAFJA), and the Coalition for Ethical Operations.

We are working with South Africa’s Council for Scientific and Industrial Research (CSIR) on assessments to enhance manufacturing industry competitiveness through resource efficiency and cleaner production, and we partner with various NGOs and academic bodies, including the Centre for Food Safety at Stellenbosch University.

As signatories to the We Mean Business initiative, we have committed to adopting a science-based emissions reduction target, promoting responsible corporate engagement on climate policy, and reporting climate change information in mainstream reports as a fiduciary duty. Other key relationships include our partnership with the United Nations Industrial Development Organisation (UNIDO) and our participation in the Strategic Water Partnership Network (SWPN).

Recognising the critical importance of understanding and being responsive to our stakeholders’ interests, we have introduced a structured stakeholder relations strategy (see Our key relationships).

Aligning with the Task Force for Climate-related Financial Disclosures (TCFD)

While working to improve our annual reporting and sustainability disclosure, we have started to look at aligning more closely with the recommendations of the Task Force for Climate-related Financial Disclosures (TCFD). The TCFD takes a different approach to tools like the CDP Climate Change Programme, by aiming to integrate climate-related disclosure within annual financial filings and reports. The intention behind the TCFD’s approach is to align climate reporting more closely with a company’s regular reporting practices, towards making it both easier for companies and more digestible (and useful) for investors. The focus is on providing investors with clear, financially relevant and decision-useful information through an internalised mechanism (annual reporting) in which companies are already invested.

At a time when the demands of multiple sustainability reporting frameworks and standards place an excessive burden on companies and a time when we are looking to concentrate our efforts towards improving our disclosure, we find that aligning with the TCFD approach will help us gain more ground in this arena.