| IMPACTS |
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Social inequality and inclusion |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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| RISKS |
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Socio-economic instability |
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High unemployment, poverty and social unrest present risks to operations, potentially disrupting
supply chains and market stability. |
Supply chain disruptions |
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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 |
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New legislative requirements, including new taxes and stricter regulation on environment and
health, present legal and compliance risks. |
Reputational risk |
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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. |
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| OPPORTUNITIES |
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Social redress and economic transformation |
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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 |
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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 |
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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 |
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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 |
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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. |