The risk and sustainability committee (RSC) ensures that the environment and sustainability initiatives and objectives of the group are effectively integrated into the business at an operational level. The RSC is made-up of four non-executive directors as members, and normally attended by three chief growth officers, chief supply chain officer, company secretary, chief corporate affairs, chief financial officer, chief legal officer, corporate finance executive and the chief executive officer.
Our executive committee facilitates the effective control of the group’s operational activities in terms of its delegated authority emanating from the board. The executive committee is responsible for developing policies and strategy for recommendations to the board and for the implementation and execution in line with the board’s mandate. Progress towards meeting sustainability-related targets and goals, are also monitored at an operational level by the executive committee, championed by the executive director, as an independent member. The executive committee meets at least monthly and meet more often when necessary.
In terms of direct roles and responsibilities, the following are the highest-level positions with responsibility for defining and executing sustainability initiatives and objectives, and report to the board more frequently than quarterly on sustainability-related issues:
- The chairman of the board is appointed through the nomination and governance committee (NAGC) and is responsible for the group as a whole. The chairman sits in the Remco and Nomco to exercise oversight on all sustainability-related issues.
- The chief executive officer (CEO), who reports to the chairman, is appointed by the board for full accountability on management of sustainability issues, where purpose-aligned actions need to be taken, as the chief business lead. The CEO ensures that the sustainability strategy is effectively integrated into the business. He is also a regular attendee of the RSC and a member of SETCO.
- The chief corporate affairs and sustainability officer plays a critical accountability and execution role in corporate social investment (CSI) initiatives and projects managed through external stakeholders and sustainable socio-economic development (SSED) partnerships.
- The chief human resources officer reports directly to the CEO and is accountable for driving effective talent management, leadership development and succession, as well as creating a great place to work through diversity and inclusion, rewards and recognition, constructive employee relationships and culture transformation to enable the employee experience.
- The chief marketing officer also carries the responsibility for research and development (R&D). This year, R57 million was spent in R&D, including salaries. R&D plays a vital role in the development of nutritional products and addressing packaging objectives.
- The chief supply chain officer, who reports directly to the CEO, takes operational accountability for safety, health, environmental and security performance. Also, under his control is quality and food safety.
- The chief growth officers have full responsibility and accountability for the sustainability performance of their divisions; Consumer Brands – Food, Exports and International, and Milling and Baking.
- The risk and sustainability director, who reports directly to the chief supply chain officer is responsible for the management and coordination of sustainability initiatives as well as safety, environmental management, security and employee health across all our operations.
Linking remuneration to sustainability targets
Tiger Brands has begun providing performance incentives for the management of sustainability-related issues through the short term incentive scheme (STI). Remuneration incentives are currently offered for performance against quality, safety and efficiency targets. The incentives are applicable across the group from senior executives to factory workers.
As part of our ongoing improvement, we continue to look at further sustainability-related performance indicators to be included in our STIs.