Our sustainability strategy

Overview

In 2019, Tiger Brands clarified its strategic commitment to promoting a Sustainable Future, the fourth pillar of the company’s long-term growth strategy. The Sustainable Future strategy reflects our approach to driving the company’s societal value proposition by optimising our impact on the social and natural capital stocks on which we depend.

Developing the Sustainable Future strategy enabled us to integrate existing sustainability projects with new initiatives, align these with the UN SDGs, and to organise this under an umbrella framework of longer-term focused goal areas that align with our business model. We have highlighted our priority SDGs upfront in this report and are working with the National Business Initiative (NBI) to identify the key common SDGs to drive collective impact in the agri-processing sector. Tiger Brands is aligned on the common priority SDGs and sector-level objectives emerging through this engagement.

These are the three areas where we believe Tiger Brands can meaningfully contribute, through our business activities, to achieving the UN Sustainable Development Goals (SDGs) and addressing some of the significant socio-economic and environmental challenges in our markets. These focus areas are underpinned by a set of 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, stakeholder responsiveness and partnerships.

To deliver on our core purpose of nourishing and nurturing more lives every day, we have prioritised the following three focus areas:

Health and nutrition Enabling consumers to improve their health and wellbeing We will enable consumers to improve their health and wellbeing by providing affordable good nutrition Develop nutritional standards for our products that meet or exceed globally recognised nutritional guidelines Develop more nutritious, affordable food products, including fortification of new and existing products Leverage our brand and marketing activities to promote consumer nutrition and health awareness and inspire positive behaviour change Play a leading role in modern food labelling practices		Enhanced livelihoods Improving the livelihoods of thousands of people We will improve the livelihoods of thousands of people by providing opportunities across our value chain for inclusive economic participation Support new black/black-women owned enterprises and create sustainable livelihood opportunities by 2030 By 2030, 50% of our total local procurement spend will be towards black/black-women owned suppliers Annually contribute at least 1,5% of net profit after tax towards socio-economic development activities that promote sustainable thriving communities To attract, source and develop a skilled and diverse workforce, create an inclusive and collaborative work environment where our people can thrive, grow and innovate		Environmental stewardship Significantly reducing our environmental footprint We will significantly reduce our environmental impact through innovative solutions Optimise our energy usage through integrated and environmentally friendly energy options Optimise our water consumption through the evaluation of water reuse opportunities and responsible effluent discharges Develop innovative product offerings that are “good for you” and “kind to the environment” Provide innovative packaging solutions that minimise environmental impact

Delivering on our sustainability strategy

Tiger Brands aims to report more meaningfully against our Sustainable Future strategy. To achieve this, our objective is to establish clear baselines and targets for big 2030 goals, with milestone targets set for 2025. Currently, we are using a strategic roadmap of annual commitments aligned with key performance indicators to guide and measure our progress towards better defining these longer-term goal structures. This is a work-in-progress. We disclose our efforts here in the interest of strengthened transparency, as we continue to drive better integration of sustainability across our organisation.

At risk

Behind schedule

On track

	Health and nutrition

Priority SDGs			2030 target			2020 commitment			2020 achievements		Progress
			Our nutritional standards to meet or exceed globally recognised guidelines			Our nutritional standards updated to meet globally recognised guidelines			Standards formalised through NICUS1 Introduced a 3-tier categorisation of products Product range against the set criteria
			Improvement in the percentage nutritious products of total portfolio Improvement in the percentage sodium reduction of total portfolio			Baseline established and target set for more nutritious products as a % of total portfolio			Begun implementation of a PLM2, which will support establishing a baseline Launched new more nutritious and affordable products Micronutrient enrichment delivered across >30% of our portfolio to date
			Reach > 5m consumers annually with EWLW3 Publish 12 x thought leadership pieces per year Support 4 x government health and wellness initiatives per year			Baseline established and target set for number of brands, marketing activities and impact measurement			Setting of baseline and 2030 target in progress Refreshed the EWLW3 programme Began re-positioning key brands and products in relation to their flagship health and nutrition attributes
			100% compliance with the new RSA front-on-pack nutrition labelling regulations			Baseline established and target set for nutritional modern food labelling practices			Setting of baseline and 2030 target in progress Compliance with our EWLW2 and Be-Nutrient-Wise standards Began re-structuring label architectures to accommodate for more nutrition information

¹  Nutrition Information Centre of the University of Stellenbosch.
²  Product Life-Cycle Management System.
³  Eat Well Live Well Programme.

	Enhancing livelihoods

Priority SDGs			2030 target			2020 commitment			2020 achievements		Progress
			1 000 new black/black-women owned enterprises 10 000+ sustainable livelihood opportunities created			Launch the ESD¹ fund (Dipuno Fund) and commit R100 million investment			Initial capital investment of R45 million Projects approved to the value of R12 million and disbursed R8,4 million Received four awards at Absa Supplier Development Awards 2020
						Set-up new enterprises and facilitate 1 000 jobs			Created more than 100 new jobs to date in small farmer sector
						Set-up a business incubator to support emerging entrepreneurs			Supported 50 emerging entrepreneurs to date through business incubation training
			50% of our total procurement spend towards black/black-women owned suppliers			R1 billion incremental preferential procurement spend			Spent R816 million incrementally (up from R350 million in 2019)
						Import replacement procurement plans in place			63% of agricultural commodities sourced from local suppliers Successfully procured groundnuts (750 tons), small whites beans (270 tons) wheat (3 216 tons) from local suppliers
						Drive implementation of our BBBEE procurement policy2			25% of BBBEE procurement policy implemented
			Sustainable, food-secure, and thriving host communities Positive social impact and ROI3			Food gardens for communities, families, schools and universities			Eight food community gardens 200+ school gardens (EduPlant)
						Food hampers to vulnerable communities and universities			Plates4days provides 4 500 hampers across five universities 105 648 food hampers distributed
						Set-up community social enterprises			Established community bakery at ACFS 20 community members trained in bread baking
			Fully representative ACI4 workforce at the relevant occupational levels			34% ACI4 female workforce 16% ACI4 black management in level C-F 1,6% people with disabilities			29,5% ACI4 female workforce 14,3% ACI4 black management in level C-F BBBEE score: Level 4 0,32% people with disabilities

¹  Enterprise and Supply Development (ESD).
²  Supplier BBBEE level 4 or better.
³  Return on Investment tracked through external verification.
⁴  African, Coloured and Indian (ACI).
⁵  Based on BBBEE level 4 on current codes.

	Environmental stewardship

Priority SDGs			2030 target			2020 commitment			2020 achievements		Progress
			15% of all energy use from renewable energy sources 15% in GHG emissions from FY19 baseline			7% of energy intensity (kWh/ton)			ESO1 and EnMS2 programmes launched Management interventions implemented Achieved an absolute energy-use reduction of 5,34% Achieved a 5,69% reduction in energy intensity (kWh/ton)
						5% of GHG emissions			RECP3 expert programme launched and implemented Appointed experts to assist in GHG-emissions reduction Achieved a reduction in absolute (Scope 1) carbon emissions of 4,18% Achieved an 8,23% reduction in emissions intensity
			water consumption by 25% from FY20 baseline			5% in water use intensity			Completed industrial water-efficiency assessments Opportunities and responsible effluent discharges Implemented water-saving projects (e.g. at Culinary, Fatti’s & Moni’s, Candy) Achieved an absolute water-use reduction of 8,84% Achieved a 5,86% reduction in water intensity (kℓ/ton)
						Smart metering implemented for steam systems and water intensive process areas			Installed smart metering for water and steam systems
			60% of our products are sourced from suppliers that practise environmental stewardship			Initiate environmental stewardship conversations with our top tier suppliers			61% of spend covered by confirmation of compliance received from suppliers Initiated engagements with suppliers in July 2020
			100% of our plastic packaging is recyclable or compostable led by our top 10 Brands			Tiger Brands packaging footprint baseline assessment completed			80% complete with baseline assessment Identified non-recyclable items across all our categories Conducted a packaging sustainability gap-analysis Light-weighted aerosol cans, achieving a 10% material reduction
			At least 2 x circular economy projects related to plastics delivered Zero waste to landfill Reduce food waste by 50%			Identify circular-economy projects Identify by-product beneficiation options Initiate zero-waste-tolandfill projects			Conducted waste-stream mapping Conducted RECP3 waste-reduction assessments Circular-economy investment proposal received Implemented zero-waste-to-landfill projects (e.g. at Jam Paarl, L&AF, Culinary Mayonnaise and Jungle 74% reduction of waste-to-landfill at Tastic site
						Tiger Brands recycling hubs set-up			Identified five potential projects and working on business plans Working with Oxfam to establish Gauteng PET5 recycling plant
						Commit to voluntary food waste reduction program			Working with GCGSA4 to set-up framework for South Africa, baseline to be set by 2022
			Select brands have FOP* environmental impact messaging			Policy formulated for on-pack information and declaration relating to the environmental impact			Policy completed and in use

¹ Energy System Optimisation (ESO).
² Energy Management System (EnMS).
³ Resource Efficiency Cleaner Production (RECP).
⁴ Consumer Goods Council South Africa (CGCSA).
⁵ Polyethylene Terephthalate (PET).
* Front of Pack.