Sustainability report: a review of Tiger Brands’ environmental, social and governance (ESG) performance

We promote ethical supply chain practicesDownload pdf version

   

Our human rights policy was approved by the board in 2018, and establishes the principles and responsibilities for upholding, monitoring, reviewing and reporting on human rights performance within Tiger Brands and across our supply chain. The policy has been developed to uphold the inviolable rights of people and to protect the group, its employees, assets, information, operations and reputation. It applies to all employees, temporary employees, contractors, service providers and consultants.

Our human rights policy was implemented across our operations and supply chain, and human rights awareness is a regular feature of our annual internal communications programme. Any updates resulting from the review will be similarly implemented and communicated across the organisation. Training on human rights has been included in our induction programme for new employees, and a specific human rights module will be developed for our human rights e-learning, also upon completion of the policy review. All our employees have participated in human rights training each year since 2018.

Our ethics line and whistleblowing facility, www.tip-offs.com, is open and available across our supplier network, providing a channel through which human rights abuses and any other ethical concerns can be reported directly to the company.

We assess our human rights impacts on an ongoing basis, as part of our core business processes. We are committed to disclosing our actions to prevent and mitigate any human rights issues, should an alleged case be reported through our ethics line, or a specific risk be identified during internal auditing. In 2021, no specific human rights issues were identified, and no allegations were reported through our ethics line, the media or Human Rights Watch.

In accordance with our ethical sourcing policy (see below), we request that all suppliers sign a human rights declaration, through which they acknowledge our human rights policy, pledge their commitment to uphold the principles and conditions therein, and confirm that they are not complicit in any human rights issues.

Our human rights policy is available at www.tigerbrands.com/sustainability/reporting.

ETHICAL SOURCING

The Tiger Brands ethical sourcing policy was approved by the board in 2018, and is being implemented across our supply chain. This policy addresses potential human rights concerns within our supply chain. Suppliers are required to comply with our ethical sourcing policy, and are requested to sign a commitment of compliance annually, including a signed human rights declaration in line with our human rights policy. Where deemed necessary, suppliers are audited by Tiger Brands or an external party to verify compliance. We routinely assess and select new suppliers based on their risk and performance relating to their human rights, labour relations, wage, safety, social, environmental and compliance practices.

We are committed to building an ethical and responsible supply chain by championing human rights and establishing contextually informed, fair, just and responsible sourcing practices. We currently work with our suppliers to uphold fair labour practices, tackle plastic packaging waste, promote animal welfare, and source sustainable palm-oil and cocoa. Looking forward, we aim to engage our suppliers more consistently and work together more closely to advance and assure ethical and sustainable practices in our supply chain.

We drive improvements in our approach and practice through participating in dialogues and building relationship with potential partnerships. We engage with government on key issues and legislative developments, and participate in facilitated discussions through forums created by organisations such as the National Business initiative (NBI), Consumer Goods Council of South Africa (CGCSA), World Wide Fund for Nature (WWF) and UNICEF.

HUMAN RIGHTS

Human rights are key concerns for our business, particularly in regard to our exposure to potential risks in our supply chain. We are committed to securing and promoting human rights in our own operations, and through our supply chain, in the contexts where we operate. We believe strongly that doing so helps to foster societal conditions which are more conducive to business success and sustainability.

Human rights are issues of growing concern to business globally, with new legislation and initiatives emerging, including the UK's Modern Slavery Act, the EU Mandatory Human Rights Due Diligence Directive, and the sharpened focus on human rights in the newly updated GRI Universal Standards. While the South African Constitution is strong on human rights, all of our markets in Africa are widely considered high-risk for human rights abuses. In this context, human rights is an issue of growing importance to our stakeholder's, and thus of key importance to us, and we are strengthening our human rights approach, processes and practices. Towards this, we participated in the Child Rights Governance Roundtable hosted by UNICEF earlier in the year.

In 2021, we issued compliance notifications to 641 suppliers, representing 98% of our procurement managed spend. We received signed commitments to comply to our ethical sourcing policy from 61% of suppliers, representing 60% of our procurement managed spend. We are following up with the suppliers who have not yet responded. In 2020, we issued 705 notifications, equating to 91% of spend, and received signed commitments from 49%, representing 61% of our spend.

Our ethical sourcing policy is available at www.tigerbrands.com/sustainability/reporting.

Ethical sourcing declaration tracker

as at 30 September   2021 2020 2019
Number of notifications sent   641 705 208
Percentage spend covered by notifications (%)   98 91 73
Number of acknowledgements received   390 350 141
Percentage acknowledgements received (%)   61 49 68
Total spend covered by acknowledgements (R’bn)   7,3 9,3 5,2
Percentage spend covered by acknowledgements (%)   60 61 43

RESPONSIBLE SOURCING

Our business depends on healthy ecosystems to produce sustainable supplies of wheat, maize, fruit, vegetables and other raw materials. We are aware of the opportunity to leverage the scale and presence of Tiger Brands to drive change through our supply chain, towards more sustainable (and potentially regenerative) agricultural practices.

We are looking to consolidate our efforts on responsible sourcing and sustainable agriculture, including through the development of a group standard to guide the sourcing of agricultural commodities and products. Currently, our engagement on agricultural practice in our supply chain is governed by the imperative to produce products that are safe, meet all regulatory requirements and fulfil our high standards for quality.

Our process for selecting new suppliers includes an assessment of their environmental risk and performance. As part of our annual engagements with suppliers on our ethical sourcing policy, we require established suppliers to confirm they have adequate environmental management systems in place and are not party to any significant environmental incidents or investigations. In the case that we become aware of any misconduct by a supplier in this regard, we will engage the supplier with the intent to resolve the issue, and where appropriate, cancel contracts and find alternative suppliers.

Please also refer to optimise our supply chain in the IR.

WE SOURCE SUSTAINABLE PALM OIL AND COCOA

Palm oil and cocoa (liquor and butter) are important ingredients in our chocolate business. We are concerned about deforestation, loss of biodiversity, and the use of peat lands in the production of these forest commodities. To address this, we set caveats on our sourcing of these raw materials that foreground traceability and sustainable certification. This safeguard provides assurance that our supply chains for palm oil and cocoa are anchored by the principles and standards of sustainable production.

  • We only source palm oil through suppliers that are members of the Roundtable on Sustainable Palm Oil (RSPO)
  • We only source cocoa liquor and butter from suppliers certified by Fairtrade and the Rainforest Alliance.

Our other responsible sourcing practices

Pesticides and herbicides We maintain a comprehensive system of controls and processes to ensure the highest level of product quality and safety for food products and fresh produce. Only agriculturists accredited through the Association of Veterinary and Crop Associations of South Africa (AVCASA) and Bemestingadviseurs Sertifi sering en Opleidingskema (BASOS) can give active technical advice on registered chemicals and fertilisers. All our fresh produce is tested for chemicals and residue before acceptance.
Genetically modified (GM) crops We exclude GM ingredients from all Purity baby food products.
Soil quality We source fresh produce from farmers who practise crop-rotation and cover-cropping to manage soil quality through the control of soil-related diseases, building soil-carbon and retaining soil moisture.
Animal welfare We require adherence to best practice in the rearing, transporting, and slaughtering of livestock, including for dairy, chickens and eggs, where these are used as ingredients in our products.
Deforestation We encourage procurement to source and use Forest Stewardship Council (FSC) certified paper suppliers and products for all packaging and internal-use requirements. All our Jungle Oats boxes are manufactured with FSC-certified paper.
Sustainable seafood Our supplier promotes responsible fishing practices through the code of conduct set out by the Food and Agriculture Organisation of the United Nations (FAO) and the Department of Forestry, Fisheries and Environment (DFFE).
Animal testing Tiger Brands does not conduct animal tests with respect to our food and beverage products or ingredients, except when required by law to demonstrate safety or efficacy.

ADMINISTRATION Expand

TIGER BRANDS LIMITED
Incorporated in the Republic of South Africa
Share code: TBS
ISIN: ZAE000071080
Registration number: 1944/017881/06

COMPANY SECRETARY
JK Monaisa

REGISTERED OFFICE
3010 William Nicol Drive
Bryanston
Sandton

POSTAL ADDRESS
PO Box 78056, Sandton, 2146
Telephone: +27 11 840 4000

AUDITORS
Ernst & Young Inc.

PRINCIPAL BANKER
Rand Merchant Bank

SPONSOR
JP Morgan Equities South Africa Proprietary Limited

SOUTH AFRICAN SHARE TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue
Rosebank, 2196
Private Bag X9000, Saxonwold, 2132

AMERICAN DEPOSITORY RECEIPT (ADR) FACILITY
ADR Administrator
The Bank of New York Mellon

INVESTOR RELATIONS
Nikki Catrakilis-Wagner
Erene Kairuz
Telephone: +27 11 840 4000

SUSTAINABILITY
Stiaan Wandrag
stiaan.wandrag@tigerbrands.com

WEBSITE ADDRESS
www.tigerbrands.com

CONTACT DETAILS
Companysecretary@tigerbrands.com
Investorrelations@tigerbrands.com
Consumer helpline: 0860 005342


FORWARD-LOOKING INFORMATION

This report contains forward-looking statements that, unless otherwise indicated, reflect the company’s expectations at the time of finalising the report. Actual results may differ materially from these expectations if known and unknown risks or uncertainties affect the business, or if estimates or assumptions prove inaccurate. Tiger Brands cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these statements. The company assumes no obligation to update or revise any forward-looking statements, even if new information becomes available as a result of future events or for any other reason, save as required by legislation or regulation.