SUSTAINABILITY REPORT 2024

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

Waste and packaging

Our operations generate solid waste throughout the value chain, including plastic and other packaging waste, as well as food waste and loss. Upstream, agricultural waste arises from overproduction, produce imperfections, unused plant parts and losses due to pests, disease and weather events. Optimal refrigeration during distribution to processing plants is critical for reducing food spoilage.

In manufacturing, food waste results from various production processes, while packaging production and disposal contribute significantly to solid waste. Packaging design plays an essential role in minimising both packaging waste and food waste. Further down the chain, incorrect handling and refrigeration in distribution, along with consumer disposal, generate waste from uneaten food and discarded packaging. Post-consumer packaging and food waste contribute to landfill volumes.

Plastic packaging is crucial for delivering products safely, promoting convenience and protecting consumer health, yet it has considerable environmental impacts. Plastic waste harms marine ecosystems and wildlife, contributes to climate change, visually and chemically pollutes air, water and soil. Beyond packaging, food waste and loss are critical issues, with about a third of all food globally wasted across the value chain. This waste embodies lost energy, water and nutrients, and results in carbon emissions from production, transportation and landfill decomposition.

South Africa's extended producer responsibility (EPR) regulations place legal obligations on producers to manage post-consumer packaging waste through public responsibility organisations (PROs) appointed to collect and recycle waste on their behalf. Producers pay levies to PROs based on the weight of packaging materials sold into the market.

Reducing packaging and food waste enhances both cost-efficiency and environmental performance, with social benefits when surplus food is redirected to those in need. Recycling and circular economy initiatives offer additional financial benefits by reducing disposal costs, supporting waste valorisation and creating income-generating opportunities.

Management

Our approach to managing waste and packaging is informed by compliance requirements and participation in industry initiatives through the Consumer Goods Council of South Africa (CGCSA). Through the CGCSA, we are committed to the principles and targets of the South African Plastics Pact, as well as the food loss and waste voluntary agreement.

Our target is to achieve zero waste to landfill by 2030, with an interim milestone of a 50% reduction in waste to landfill by 2025, supported by annual performance targets. We set annual targets to drive year-on-year improvement towards these long-term goals. In 2024, our waste minimisation target was a 13% reduction in waste-to-landfill intensity.

We outsource all waste management to external service providers under service-level agreements that specify our waste management principles and targets. We work with these providers to improve our practices and over the last few years, have made significant foundational improvements in waste segregation and reducing waste sent to landfill.

Where possible, we take an inclusive approach to waste minimisation and recycling, aiming to create jobs and support micro-enterprises in the process. A consistent element of our food-waste minimisation strategy is to donate near-dated food to vulnerable communities through our partner, FoodForward SA.

Plastics and packaging

As a signatory to the SA Plastics Pact, we have committed to reducing plastic packaging, increasing recycling rates and incorporating more recycled content by specific targets set for 2025. While we have taken steps over the years to improve the efficiency and sustainability of our packaging, progress has been slower than anticipated and we now view these targets as unfeasible. Consequently, in 2024, we reassessed and adjusted our plastic waste and packaging goals to align with industry standards for 2030. Our updated 2030 targets are to ensure that 80% of plastic packaging is recyclable or compostable and that all plastic packaging (by volume) contains at least 25% post-consumer content.

We are fully compliant with the EPR regulations and as required, we track and calculate the total weight of the packaging we produce across all product categories and pay annual waste levies to public responsibility organisations (PROs) to manage and recycle these materials post-consumer.

Food waste and loss

Through the food loss and waste voluntary agreement, we are committed to reducing food waste by 50% by 2030, aligned with SDG target 12.3. We established a 2022 baseline for this target in 2023 and while measuring food waste and loss at some sites remains a challenge, we believe we are on track to meet our 2030 target. Our food loss and waste reduction efforts have kicked-off at our Boksburg sites, focusing on categorising food waste and losses and developing targeted plans to reduce and eliminate waste generated on the production lines.

Communicating recyclability

We have established a standard practice for the on-pack labelling of a product's recyclability. Our approach is easy-to-understand and clearly informs consumers what is recyclable and what is not. We implement this practice for all new products and existing products under renovation, as part of our broader responsible marketing and labelling practices (see here).

Key packaging reduction activities to date
  • Identifying innovation opportunities: We completed a baseline assessment of our packaging footprint and have identified non-recyclable items across all our categories. We followed this with a packaging sustainability gap-analysis to identify various packaging improvement opportunities.
  • Optimising light-weighting: Most of our packaging across all our categories is at optimum weight or thickness.
  • Reducing primary, secondary and tertiary packaging: We have removed flat-boards as secondary packaging on new product lines and all new products are now packed directly onto a pallet using a thinner but stronger shrink wrap. We will be extending these initiatives to the rest of our product range and ultimately, we will eliminate the use of shrink wrapping with the introduction of automated palletisation.
  • Specify the use of recycled plastics: We have migrated most of our Beverages and HPC products to reusable and recyclable plastic packaging. Our beverage bottles now use 85% recycled PET (rPET) and we plan to increase this further in future. A key challenge is the limited availability of affordable high-quality recycled materials in South Africa. We are working with various stakeholders within the plastic recycling value chain to find opportunities to address this.
  • Replacing non-recyclable with recyclable: We have transitioned our peanut butter, mayonnaise and tomato sauce products to PET packaging. We are collaborating with suppliers to develop recyclable monolayer solutions for flexible plastic materials, starting with the replacement of our two-kilogram Woolworths and Tastic rice packs. Developing flexible and recyclable plastics remains an industry-wide challenge.
  • Testing biodegradable and compostable packaging materials: We are testing a material made from sugarcane, for inclusion in all our high-density polyethylene (HDPE) closures and bottles. We are exploring the scalability of compostable materials in South Africa, but face challenges regarding costs and infrastructure. Solutions will require collaboration and collective impact.
  • Assessing reuse models: We are exploring reuse models that include product-refills and digital-ordering solutions, yet solutions will require collaboration and collective impact. 90% of the packaging in our Beverage and HPC businesses is reusable.
  • Piloting anti-microbial technology: We are exploring the possibility to extend the shelf-life of our bread products by incorporating anti-microbial additives into plastic bread bags and thereby reduce food waste and loss.
Performance

In 2024, we generated a total of 47 798 tonnes of solid waste, with 6 217 tonnes of non-hazardous waste sent to landfill. We recorded a 19,1% reduction in non-hazardous waste sent to landfill, keeping us on track for our 2030 zero waste-to-landfill target, although we did not meet our annual waste-to-landfill intensity goal of a 13% reduction. Our landfill waste intensity decreased by 11,9%, from 3,44 kg/tonne in 2023 to 3,03 kg/tonne in 2024. Total food waste and loss increased by 10,2% and food waste and loss intensity increased by 20,3%. Additionally, 25% of our packaging was recyclable.