SETCO's welcome

As chairman of the social, ethics and transformation committee (SETCO), I play a critical role in overseeing Tiger Brands’ commitment to a societal purpose – to nourish and nurture more lives every day – and the effective implementation of ethical governance and sustainability management practices that align with this purpose, societal expectations and stakeholder priorities.

Despite challenges and a tough operating environment as well as internal changes from the new operating model, the group continued to make progress in strengthening our sustainability principles and foundational management processes. All compliance obligations were met, with improvements in the site-level management of community engagement, energy, water and waste.

The SETCO plays a central role in aligning Tiger Brands’ strategic direction with long-term societal and sustainability goals, providing robust oversight of social and environmental impacts and risks. As a committee, we monitor the integration of sustainability into management processes, ensure compliance with ethical, social and environmental legal requirements, and track progress against the goals and targets outlined in the group’s sustainability strategy.

While there is room to deepen sustainability-specific expertise within the SETCO and the board more broadly, we are well-supported by external advisors. Building on last year’s board briefing on “sustainability as a business and social imperative”, the board received a targeted briefing this year on operational water risk, informed by a specialist study commissioned for the company’s operations.

There were two changes to the committee this year. We welcomed Lucia Swartz who has already made valuable contributions to discussions on our people agenda. We also bid farewell to Gail Klintworth who retired from the SETCO and the board at our last AGM. We thank her for her invaluable contributions and wish her well in the future.

The SETCO currently convenes three times a year. This year’s key areas of engagement included government and investor relations, the listeriosis class action, small-scale farmer support, B-BBEE transformation, talent acquisition and development, operational performance, environmental concerns and community impact.

The ongoing listeriosis class action remains top-of-mind, with recent developments challenging Tiger Brands’ leadership, legal team and the SETCO in navigating the complexities of the litigation and its implications for the group’s reputation. We continue to engage on this issue, aiming for a responsible and expedient resolution. Recognising the harm caused, the company is committed to acting responsibly and doing the right thing.

Following the national elections in May, we prioritised building relationships with the new government stakeholders, particularly within the Ministries of Agriculture and Health. These relationships are essential to addressing strategic issues such as support for small-scale farmers, new product labelling regulations and the listeriosis class action. They also enable closer alignment of our efforts with national priorities.

Investor engagement was another priority, with roadshows held throughout the year. Investors showed increased interest in our climate change response, especially transition planning, and in our work on energy, water and waste impacts, given South Africa’s infrastructure and service delivery challenges and emerging regulatory requirements. We responded by emphasising Tiger Brands’ commitment to full compliance and attentiveness to new developments, while making incremental progress on foundational environmental management practices.

Aligned with the new operating model implemented this year, Tiger Brands is moving towards a more decentralised sustainability approach, embedding ownership of key responsibilities at the site level and building operational capacity in social and environmental areas. While gaps remain, this year saw incremental progress in establishing foundational management practices across our operations, though these efforts have not yet translated into resource efficiency gains.

Site-level community engagement steering committees have been established to support direct engagement with neighbouring communities at key sites and a sustainability working group has been set up at the group level to ensure alignment across sites.

The group’s clean energy plan, which currently prioritises onsite solar installations, addresses energy security and decarbonisation across our operations, with the management team also exploring energy wheeling opportunities for future development. The group’s broader climate change strategy still requires development, however, we have budgeted for a review of this in 2025.

Key progress this year included the completion of an expert-led water risk assessment, which identified erratic supply, reliance on tanker services, deviations from SANS 241 standards, low water pressure and leaks as key operational risks. Addressing these challenges to strengthen operational water security will also be a priority in 2025.

Climate change pressures in our agricultural supply chains underscore the need for sustainable sourcing and renewed support for small-scale farmers. Adverse weather patterns are affecting both global and local sourcing, highlighting the importance of resilient, localised solutions. Our local small-scale farmers face significant challenges on all fronts and our work to support them remains complex. Although the Dipuno ESD Fund was on hold for the greater part of 2024, the group remains committed to preferential procurement and supplier support through the ESD programme wherever possible. We continue to engage with farmers, funders, government and other stakeholders to find sustainable solutions to transform the sector and our supply chains.

Similar to our ESD work, employment and gender equity remain central to our social licence to operate. This year, Tiger Brands maintained its level 2 B-BBEE contributor status and our WINGS programme continued to nurture talent, supporting the development of strong role models within the company. In recognition of these efforts, Tiger Brands received multiple awards at the 2024 Business Engage Gender Mainstreaming Awards. Talent acquisition and development remain key priorities amid South Africa’s shortage of critical skills.

Tiger Brands’ commitment to making a meaningful community impact remains steadfast, particularly through partnerships and initiatives that enhance livelihoods and deliver multiple benefits. A highlight this year was the work at the group’s LAF facility, where a partnership with local authorities restored water services to both the manufacturing facility and the surrounding community. Such initiatives reflect our dedication to creating shared value and supporting the communities where we operate.

Looking forward to 2025, resolving the ongoing listeriosis case remains a top priority for the company. Closing this matter is crucial for rebuilding public trust and enabling us to move forward with transparency and accountability. In support of building accountability, an independent survey of the group’s ethics policies and practices has just been completed and we look forward to reviewing the results to identify areas for improvement, ensuring alignment with globally recognised standards.

Advancing our climate change strategy will also be a key focus, with a cost-benefit analysis planned for various options, including carbon accounting for scope 3 emissions and a potential climate change scenario planning process. Similarly, we will begin implementing the recommended actions from the water risk assessment to strengthen operational water security.

I would like to extend special acknowledgment to Mary-Jane Morifi, our outgoing corporate affairs and sustainability executive.

Mary-Jane has been instrumental in bringing a societal purpose to Tiger Brands, shaping and championing sustainability within the company for the last eight years. Her leadership has helped expand integrated thinking at the executive level, clarify the group’s sustainability strategy and bring coherence to the operational management of social and environmental impacts and risks. She has inspired all of us with her ability to simplify complex challenges, pose the difficult questions and encourage exploration of ideas and strategies that create value for both the business and society.

Her exceptional work and unwavering commitment to the company have made a lasting impact, one that will continue to resonate. On behalf of all Tigers, the SETCO and the board, I extend our heartfelt gratitude to Mary-Jane for this significant contribution. We wish her every success for a well-deserved retirement.

Lastly, I would like to thank Tjaart and the executive team for their collaboration with the SETCO in cascading the sustainability strategy across the group, as well as all SETCO members for their invaluable contributions during the year.

December 2024