20
22

Tiger Brands Limited

Integrated annual report

NOTICE OF AGM

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#6
 

INVESTING IN A SUSTAINABLE FUTURE

Our sustainable future strategy supports delivery on our core purpose, communicates our forward-looking approach to sustainability, and orients the business towards improved environmental, social and governance (ESG) performance.

 

The strategy articulates our societal value-proposition and reflects our commitment to addressing our most material impacts and to creating broader social, economic and environmental value.

The strategy comprises three clear focus areas: health and nutrition; enhanced livelihoods; and environmental stewardship. Our commitments under these pillars drive the pursuit of commercial opportunities in health and nutrition, the systematic transformation of our supply chain to promote more inclusive economic development, and the adoption of environmentally responsible production practices. These goal areas are underpinned by a set of critical anchors, relating to the following areas: food safety and quality; ethical supply chain practices; safety, health and environment; responsible marketing; and transparency, partnerships and stakeholder responsiveness.

  Health and nutrition   Enhanced livelihoods   Environmental stewardship  
  OUR COMMITMENTS AND KEY ACTIONS          
 

We are 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.

 

We will improve 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.

 

We will improve 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.

 
 

2030 targets

  • Empowering Good Nutrition choices for 100 million African consumers annually
  • 75% of our food basket meeting EWLW standards
 

2030 targets

  • Create 4 000 new jobs
  • Support 1 000 black enterprises and 20 community enterprises
  • ESD fund of R400 million through partnerships
  • 50% of total procurement spend on black and black women-owned suppliers
  • 100% of products ethically sourced
 

2030 targets

  • 65% of electrical energy at manufacturing sites from renewable sources
  • Energy and water intensity reduced by 30%
  • 45% reduction in GHG emissions (scope 1 and 2)
  • Zero waste to landfill at all sites
  • 50% reduction in food waste produced
  • 100% of plastic packaging is recyclable/compostable
  • Total plastic packaging (volume) to contain at least 50% recycled plastic
 
  OUR 2022 PERFORMANCE          
 

More nutritious products

  • Various new nutritious and affordable product innovations launched
  • Micronutrient enrichment across >30% of portfolio
  • Product lifecycle management system baseline launched

Nutritional standards

  • Introduced three-tier nutritional categorisation of our products

Consumer health awareness

  • R76 million spent on marketing health and nutrition products; 10,2% of total marketing spend
  • KOO TV show promoting fruit and vegetable consumption continued for second season
  • R3,3 million EWLW spend

Food labelling

  • 100% adherence to EWLW and Be-Nutrient-Wise standards
  • Continue to support clean-label pouches through new Purity fruit products

Nutrition-led CSI

  • Initiated Isondlo, a R42 million nutrition programme supporting 10 000 food-insecure children (five years of age and younger) and their families, with monthly food hamper for nine months
  • Tiger Brands Foundation serves its 100 millionth meal
 

Enterprise supplier development

  • R104 million ESD (Dipuno) Fund (2021: R85 million)
  • 67 farmers supported under aggregator model
  • 271 permanent jobs created in small-scale farming sector
  • R54 million spend on agricultural projects

Preferential procurement (PP)

  • R14 billion spend with B-BBEE-verified suppliers (2021: R14 billion)
  • R7 billion spend with black-owned enterprises (2021: R5 billion)
  • R5 billion spend with black women-owned enterprises (2021: R4 billion)

Broad-based black economic empowerment (B-BBEE)

  • B-BBEE Level 2 (2021: Level 2)

Socio-economic development

  • R26 million total SED spend (2021:R23 million)
  • 58 048 reached through Family Food programme
  • 300+ schools reached through EduPlant
 

Climate and energy

  • 13% (YoY) reduction in absolute direct (scope 1) GHG emissions
  • 13% (YoY) reduction in GHG emissions intensity
  • 7% (YoY) reduction in absolute energy use
  • 8% (YoY) reduction in electrical energy intensity

Water

  • 8% (YoY) reduction in absolute water use
  • 7% (YoY) reduction in water-use intensity

Waste

  • Waste reduction projects at site level, diverting organic waste from landfill to animal feed
  • 32% (YoY) reduction in waste to landfill intensity
  • Completed baseline assessment of packaging footprint representing 80% of volume and sales
  • 70% of plastic packaging is recyclable
  • Working through CGCSA on industry food-waste reduction framework
 
  CRITICAL ANCHORS  
  Safety and health   Food safety and quality   Purpose-led culture  
  OUR COMMITMENTS AND KEY ACTIONS          
 

We strive for zero injuries and have committed to ensuring strong behavioural safety, health and security performance, and visible, felt leadership. We have a holistic health and safety programme with clear roadmaps and deliverables, supported by a behavioural safety programme that drives leadership accountability and responsibility.

 

We are committed to ensuring superior product safety and quality, and are determined to continually raise the bar on our performance to develop capabilities that differentiate us from our competitors.

 

Our people strategy is designed to enable execution of our business strategy and growth agenda by igniting a culture of consumer obsession, agility and a growth mindset that accelerates innovation and a winning performance. Through the three pillars of talent, leadership, and a great place to work, we build a diverse talent base, develop leadership capability and create a work environment that empowers our people to focus on the consumer and deliver on our purpose.

 
  OUR 2022 PERFORMANCE          
 

Food safety and quality

  • Proactively recalled baby powder products
  • 14% reduction in consumer complaints (2021: 25%)
  • All sites manufacturing sites certified against FSSC 22000 or HACCP
  • Completed external audits for all warehouse facilities
 

Safety

  • Three fatalities (2021: Zero)
  • 0,45 lost-time injury frequency rate (LTIFR) (2021: 0,31)
  • 80 route-to-market incidents (2021: 106)
 

Creating a great place to work

  • 73% employee participation rate in VoT survey
  • Employee engagement score of 66 is in line with global trends

Diverse talent

  • 31% female workforce (2021: 31%)
  • 84% ACI in junior management and 60% at top management (2021: 63% junior and top management)
 

For more detailed disclosure on our sustainability and ESG performance, please see the Tiger Brands sustainability report 2022, available at:

www.tigerbrands.com/sustainability/reporting