SUSTAINABILITY REPORT 2024

Supplement to the integrated annual report for the year ended 30 September 2024

Our sustainability approach

Strategy

Our strategy is informed by our business context, stakeholder perspectives and evolving market dynamics. Our sustainability strategy focuses on our most material issues, aligning with our core growth objectives.

Our operating environment

Our ability to create value as a business and to deliver on our purpose, is affected by the changing dynamics in our external operating environment. We have identified four interconnected trends that are having a material impact on our business model and that continue to inform our strategic response. These trends encompass key environmental, social and governancerelated challenges and opportunities that inform our strategic sustainability response. A more detailed overview of our operating environment is provided in our IR.

Key trends and our response
  • Continuing macro-economic uncertainty: Our operating environment remains impacted by global geopolitical instability and socio-economic challenges across South Africa and our African markets. In response, we are streamlining our portfolio, upgrading manufacturing and digital capabilities, mitigating supply chain risks and strengthening brand and consumer engagement. To enhance local livelihoods, we drive economic transformation across our value chain through employment equity, preferential procurement, enterprise and supplier development and corporate social investment.
  • Shifting customer and consumer dynamics: Consumer purchasing patterns reflect economic challenges, increasing digitisation, busier lifestyles and rising demand for healthier, ethically sourced products. In response, we are expanding our online presence and meeting the demand for value by enhancing the affordability and accessibility of our products, including snacks and healthier options.
  • A changing competitive environment: Heightened competition and evolving customer needs underscore the importance of a customer-first approach, cost leadership and a strong channel presence. We are driving operational efficiencies, digitalising processes, investing in brand engagement and expanding our reach in e-commerce and general trade.
  • Increasing sustainability pressures: Climate change and other sustainability demands are increasingly material for the food sector. We ensure compliance with social and environmental regulations, implement a purpose-aligned strategy to manage sustainability-related impacts, risks and opportunities and publish annual integrated and sustainability reports.
Our material sustainability issues

The long-term success of our business lies in ensuring an effective and proactive response to our most material impacts, risks and opportunities, which we identify through structured materiality and risk management processes. The table below provides a generalised overview of the sustainability-related impacts, risks and opportunities of greatest significance for our business. We provide a detailed overview of our top business risks in our IR.

IMPACTS    

Social inequality and inclusion

 

As one of the largest FMCG companies in South Africa, we have a substantial role in shaping employment, enterprise development and skills development opportunities, as well as upholding ethical governance, promoting human rights, entrenching fair labour and remuneration practices, balancing income distribution and providing access to affordable quality food products.

Public health and nutrition

 

We manufacture and market processed food products that have direct implications for public health, including food staples and fortified foods that provide the backbone of household nutrition and snacks and treats with nutrition profiles directly correlated to high levels of obesity, NCDs and malnutrition in South Africa. The availability and messaging of our popular brands strongly influences the perceptions of adults and children on food choices and family health and nutrition. Additionally, proper adherence to food safety and quality standards is crucial at various stages of our value chain, including sourcing, manufacturing and distribution. Lapses in safety and quality at any of these points can lead to contamination or spoilage, posing potential health risks to consumers. Conversely, strict compliance ensures the provision of nutritious and uncontaminated products, promoting overall health and nutrition.

Workplace health and safety

 

People working in our manufacturing plants and warehouses and drivers of our delivery trucks are exposed to various occupational health and safety risks. We have a direct responsibility to protect employees and contractors from these risks and keep them healthy and safe. Our key safety risks include working at height, dangerous machinery, moving vehicles and unsafe conditions from heavy loads or objects. Our key occupational health concerns include exposure to dust and heat, lifting heavy loads and ergonomic impacts of computer use.

Resource use

 

Water scarcity and energy security are acute issues in South Africa. We use energy and water in our operations and the efficiency and circularity of our use of these resources in our operations directly impacts the general availability of these resources for communities and ecosystems (water). Our use of borehole water potentially impacts groundwater quality and availability.

Climate change

 

GHG emissions from our direct operations and manufacturing plants, purchased electricity, upstream manufacturing and agriculture (land conversion) and manufacturing, and downstream transport contribute to climate change. Organic waste that we send to landfill contributes to climate change through the release of methane.

Water pollution

 

Effluent released from our manufacturing plants alters the quality of water in downstream water ways and water bodies and can increase the costs associated with public water treatment.

Waste and packaging pollution

 

Our production, disposal and processing of solid waste and packaging contributes to GHG emissions and waste from Tiger Brands’ operations contribute to climate change and local environmental pollution.

Food waste and loss

 

We incur food waste and loss at various stages of our supply/value chain. Inefficiencies in harvesting, manufacturing mishaps, poor storage and transportation and issues at the retail level contribute to this waste. Our management of supplier partnerships, particularly in relation to quality standards and handling requirements, plays a critical role in either mitigating or exacerbating these losses.

Supply chain: social impacts

 

Our sourcing activities and supply chain, encompassing agriculture, food processing and manufacturing operations, generate both positive and negative social impacts. These impacts relate to ethical governance, human rights, fair labour practices, social inequality and inclusion. Particularly at the local level, we exert some influence in promoting and upholding socially ethical practices in collaboration with our suppliers.

Supply chain: environmental impacts

 

Our sourcing and supply chain activities – particularly in terms of food processing, manufacturing and agricultural operations – have both positive and negative environmental impacts. These effects influence water quality and availability, biodiversity and land conversion, climate change, waste production and pollution. At the local level, we exert some influence in promoting and upholding environmentally responsible practices in collaboration with our suppliers.

RISKS    

Socio-economic instability

 

High unemployment, poverty and social unrest present risks to operations, potentially disrupting supply chains and market stability.

Supply chain disruptions

 

Extreme weather events and climate change, aggravated by local water scarcity and energy instability, could lead to significant disruptions in the supply of commodities and raw materials and the distribution of products.

Regulatory and legal risks

 

New legislative requirements, including new taxes and stricter regulation on environment and health, present legal and compliance risks.

Reputational risk

 

Failure to address economic transformation, public health, food security and climate change issues could damage Tiger Brands’ reputation and market share, especially with rising social and shareholder activism.

OPPORTUNITIES    

Social redress and economic transformation

 

By prioritising fair and inclusive employment practices, ensuring socially ethical sourcing and building equitable supply chains and business models, we can build and grow a more resilient business while contributing to economic transformation and social justice.

Public health and nutrition

 

We can transition our product portfolio to healthier foods by reformulating products to be healthier and by developing new products and service models. We can raise awareness and educate consumers about health and nutrition. We can collaborate with government and other stakeholders on public health and nutrition, to address systemic challenges and grow the market for healthy foods.

Resource efficiency

 

By implementing water-efficient processes, energy-saving technologies and renewable energy sources, we can help mitigate resource scarcity, lower costs and reduce environmental impact.

Sustainable and resilient supply chains

 

By developing more local, diversified, sustainable and resilient supply chains, we can support local economies, reduce vulnerability to geopolitical or climate-induced disruptions and strengthen our ability to partner with suppliers to address social and environmental impacts and risks in the supply chain.

Waste reduction and circular economy initiatives

 

Reducing packaging waste and food waste, as well as developing innovative new packaging solutions, service models and circular material flows, offers the potential to reduce costs and to develop new income streams and business models that reduce resource consumption and environmental impact and that support enterprise development initiatives that address social inequality and economic exclusion.

Our sustainability strategy

Our sustainability strategy articulates Tiger Brands’ societal value proposition, presenting a forward-looking approach to sustainability that aims to support delivery on our purpose and improve our environmental, social and governance (ESG) performance. The strategy reflects our commitment to addressing our most material sustainability and climate-related impacts, risks and opportunities.

The strategy comprises three clear focus areas: health and nutrition, enhanced livelihoods and environmental stewardship. Our commitments under these strategic 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 strategic pillars are underpinned by a set of seven critical anchors: food safety and quality; ethical supply chain practices; safety, health and environment; responsible marketing; partnerships and transparency. Our critical anchors represent key areas of competency and practice that are crucial for building a strong foundation in responsible business practice in our sector.

We have mapped our strategic goals and critical anchors across the SDGs and prioritised 11 SDGs where we believe we can make the biggest contribution to society through our business.

Health and nutrition
 

We will enable consumers to improve their health and wellbeing by providing affordable good nutrition

Enhanced livelihoods
 

We will improve the livelihoods of thousands of people by providing opportunities across our value chain for inclusive economic participation

Environmental stewardship
 

We will significantly reduce our environmental impact through innovative solutions

Our anchors
 

Ethical behaviour

 
 

Purpose-driven, win-win culture

 
 

Robust food safety and food quality system

 
 

Ethical supply chain practices

 
 

Safety, health and environmental systems

 
 

Responsible marketing and communication

 
 

Transparency, stakeholder responsiveness and partnerships

 
Our contribution to the SDGs