Climate Change Data

Environmental Metrics

ESG Focus Areas

• Food security
• Community development
• Sustainable resource management
• Sustainable people practices
• Environmental sustainability

Environmental Achievements

• Reduced total electricity consumption by 6.0% year-on-year
• Increased co-generation of electricity from biomass, exporting 37.7 GWh to the national grid
• Reduced coal consumption at TSB by 9.25%
• Reduced water consumption by 0.2%
• Reduced pallet-wrap consumption through the introduction of Lock n' Pop
• Reduced product waste due to lower IQF bag damages
• Reduced consumption of non-recyclable laminate materials

Social Achievements

• Increased full-time employment by 2,521
• Reduced total staff turnover from 15.0% to 12.7%
• Reduced avoidable turnover from 8.4% to 5.8%
• Increased investment in Learning and Development
• Achieved a Level 4 contributor status in B-BBEE
• TSB achieved a Level 3 contributor status in B-BBEE
• Supported a number of organisations with monthly chicken requirements, donating over 60 tons of chicken

Governance Achievements

• Implemented an Environmental Management System based on ISO 14001 principles
• Implemented various ISO Management Systems across different business units
• Completed B-BBEE verification process

Climate Goals & Targets

Environmental Challenges

• Water shortages and water quality
• Strikes resulting in working days lost
• Resourcing scarce and critical skills
• Poor water quality and water shortages
• Increased coal consumption due to full year inclusion of TSB consumption
• Increased diesel consumption due to full year inclusion of TSB consumption

Mitigation Strategies

• Building additional reservoirs to hold water capacity
• Improving resourcing strategy and practices
• Implementing water efficiency projects
• Implementing energy efficiency projects
• Improved load efficiencies and increased utilization of “back legs”

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable sourcing policy, supplier audits, collaboration on synergistic Group procurement policies

Climate-Related Risks & Opportunities

Physical Risks

• Water shortages

Transition Risks

• Increased energy costs, regulatory changes

Opportunities

• Renewable energy projects, energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, JSE Limited Sustainability Reporting Index (SRI)

Certifications: ISO 14001, ISO 22000, FSSC 22000

Third-party Assurance: Internal assurance providers; independent assurance planned for 2016

UN Sustainable Development Goals

• SDG 2 (Zero Hunger)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)

Initiatives related to food security, community development, and sustainable resource management

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Nutrition
• Community Development
• Environmental Sustainability

Environmental Achievements

• 30% energy self-sufficiency achieved through sugar co-generation, waste-to-value, and solar projects
• 7% water reduction in the Consumer division
• 25% water savings in sugar cane farming through drip irrigation and green harvesting
• Logistics division's water consumption per ton delivered decreased by 26%
• 92% of waste converted into fertilizer or energy
• 6% reduction in waste to landfill

Social Achievements

• R44.4 million invested in training over 10,000 employees
• Launched Basadi Bereka (Women at Work) project
• 590 employees registered on SETA-accredited apprenticeships or learnerships
• #DoMore4Hammarsdale initiative improved community livelihoods
• 5.3 million meals donated in 2019 through DO MORE FOUNDATION
• Leave No Young Child Behind initiative improved ECD program quality by 140%

Governance Achievements

• Achieved a Level 4 B-BBEE score
• Continued progress towards diversity targets
• Board oversight of sustainability initiatives

Climate Goals & Targets

Environmental Challenges

• Global imbalance in food production
• Changing consumer and customer behavior
• Evolving retail landscape
• Growing pressure on food systems
• Work stoppages due to community protests at Rustenburg W2V plant

Mitigation Strategies

• Engaging with government and industry associations for industry protection
• Investing in product innovation and added-value categories
• Developing fit-for-purpose private label products
• Community engagement process at Rustenburg W2V plant to increase community development and involvement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• BEE contract growers
• Enterprise development efforts

Climate-Related Risks & Opportunities

Physical Risks

• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy generation
• Waste-to-value projects

Reporting Standards

Frameworks Used: GRI, King IV, JSE Limited's SRI

Certifications: ISO Standards

Third-party Assurance: Internal assurance providers

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Number One Moringa and Yogoboost
• Sunbake products with lower sodium
• Chilled processed meats and freezer-to-fryer products with lower sodium

Awards & Recognition

• A- rating in the Global Carbon Disclosure Project (CDP)
• 4-star rating for Cape Town Logistics water conservation

Environmental Metrics

ESG Focus Areas

• Nourishing people
• Enriching communities
• Sustaining resources

Environmental Achievements

• Increased energy self-sufficiency by approximately 22% with the new Waste-to-Value (W2V) plant in Rustenburg.
• Reduced coal consumption by 1.3%.
• 9.3% increase in water use efficiency in Sugar agriculture since 2017.
• Reduced waste sent to landfill by more than 1,000 tons through diverting poultry farm waste to a composting facility.
• Joined the SA Plastics Pact.

Social Achievements

• Achieved Top Employer certification.
• Improved B-BBEE score to level 3.
• Provided over 330 unemployed youth with 12-month work experience contracts through the Y.E.S. Programme, with 55 subsequently employed permanently.
• Implemented enhanced COVID-19 safety measures across all operations.
• Continued Diversity & Inclusivity Circle Conversations.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Ongoing power interruptions and the introduction of the carbon tax.
• COVID-19 pandemic impacting operations and initiatives.
• Water scarcity in South Africa.

Mitigation Strategies

• Investigating biomass as an alternative heating fuel.
• Working towards increasing renewable energy generation (solar, W2V).
• Exploring ways to reduce risk exposure from energy supply issues, including working with Eskom.
• Implementing water-saving initiatives and conducting water assessments at key sites.
• Rapidly and effectively rolling out enhanced COVID-19 safety measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Enterprise development partnerships with land claimant communities and small-scale growers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, King IV, JSE Limited's Sustainability Reporting Index (SRI)

Certifications: ISO

Third-party Assurance: Internal assurance providers; external assurance for carbon footprint

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 6
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

The report mentions alignment with several SDGs throughout the text, relating to hunger, health, water, economic growth, reduced inequalities, sustainable cities, responsible consumption, climate action, and partnerships.

Sustainable Products & Innovation

• Plant-based protein products through investment in LIVEKINDLY co.

Awards & Recognition

• Top Employer certification
• Bronze award for Investing in Young Women in the Gender Mainstreaming Awards

Environmental Metrics

ESG Focus Areas

• Nutrition
• Community Development
• Environmental Sustainability

Environmental Achievements

• Generated 182% more electricity from Waste-to-Value (biogas) plants
• Five times more solar power generated than last year
• Used 7.5% less water overall
• 90.5% of waste was converted into fertiliser or energy, reused or recycled

Social Achievements

• Received a Top Employer certification for a second year running
• Held nearly six times as many Diversity and Inclusivity Conversation Circles in 2021
• R32.6 million invested in training 9 250 employees
• No jobs or income lost among our employees due to COVID-19
• 30 youth businesses have been born out of the DO MORE FOUNDATION’s Township Economy initiative in Hammarsdale
• A unique toy-making enterprise has been set up in Worcester, with differently-abled youth creating wooden toys for ECD centres using timber offcuts
• Our “Leave No Young Child Behind” initiative in Nkomazi is now benefiting 81 ECD programmes – up from 24 in 2020

Governance Achievements

• Achieved a Level 4 B-BBEE rating for 2020

Climate Goals & Targets

Environmental Challenges

• Water shortages
• Power interruptions
• Rising malnutrition
• Pressure on the environment
• COVID-19 pandemic impact

Mitigation Strategies

• Implementing water-saving practices in Sugar Agriculture (targeting 30% improvement in water use efficiency by 2023)
• Investing in energy self-sufficient operations (co-generation, Waste-to-Value, solar PV)
• Developing plant-based protein market to address malnutrition and promote sustainable food choices
• DO MORE FOUNDATION initiatives to alleviate hunger and improve ECD outcomes
• Implementing strict health and safety protocols and providing employee support initiatives during the COVID-19 pandemic

Supply Chain Management

Responsible Procurement

• B-BBEE compliant procurement policies
• Supplier and Enterprise Development partnerships

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, King IV, JSE Limited's Sustainability Reporting Index (SRI)

Certifications: Top Employer

UN Sustainable Development Goals

• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 17

Sustainable Products & Innovation

• DO MORE Porridge
• Plant-based protein products through LIVEKINDLY Collective Africa

Awards & Recognition

• Top Employer certification

Environmental Metrics

ESG Focus Areas

• Nourishing People
• Enriching Communities
• Sustaining Resources

Environmental Achievements

• Purchased electricity was 6% lower
• Co-generation supplied 86% of our sugar mills’ electricity needs
• Rooftop solar generation increased by 3%
• 91% of our total waste was used as energy, reused, recycled or converted into fertiliser
• On track for 30% improvement in water efficiency in Sugar Agriculture by 2023

Social Achievements

• Launched YouMatter employee wellness programme
• Certified a Top Employer for a third year running
• Invested R48,1 million in training and developing our people
• More than doubled accredited learnerships, apprenticeships and internships
• Over 350 Diversity & Inclusivity Conversation Circles

Governance Achievements

• ESG Included into Service Level Agreements with Suppliers

Climate Goals & Targets

Environmental Challenges

• Rising energy prices and frequent load shedding
• Increasing water scarcity
• Higher incidence of industrial action
• Rise in employee wellness issues

Mitigation Strategies

• Working towards reducing dependence on purchased electricity and fresh water sources
• Investing in energy self-sufficient operations and renewable energy generation
• Implementing water reduction and reuse initiatives
• Launched YouMatter Employee Wellness Programme
• Safety – A Way of Life campaign

Supply Chain Management

Responsible Procurement

• ESG Included into Service Level Agreements with Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, King IV, JSE Limited's Sustainability Reporting Index (SRI)

Certifications: ISO

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Sustainable Products & Innovation

• Reformulated DO MORE Porridge
• Value options in Yum Yum Peanut Butter and Nola Mayonnaise
• Weight Management SKUs in Canine Cuisine and Feline Cuisine
• Sustainable packaging innovations

Awards & Recognition

• Top Employer certification
• Lumina Global Excellence Award in People Development

Environmental Metrics

ESG Focus Areas

• Employees
• Communities
• Portfolio and brand
• Nutritious and affordable food
• Climate action
• Responsible sourcing
• Protecting nature
• Waste free
• Responsible water
• Accountability

Environmental Achievements

• 3% lower greenhouse gas emissions in 2024, driven by lower coal and diesel usage
• Produced 29% of our own electricity from Co-generation, Waste-to-Value, Solar and Hydro – reducing our reliance on Eskom power
• 83.8% of our total waste was converted into energy, composted, recycled, reused or reworked

Social Achievements

• Young children in 33 communities now receiving DO MORE Porridge daily at school (up from 23 communities in 2023)
• Completed emergency post-flood restoration of Nkomazi small-scale grower (SSG) irrigation and invested an additional R19,9 million to rebuild and refurbish SSG pump stations (2023: R25 million)
• R20,7 million invested in community social development and nutrition initiatives – mostly led by our DO MORE FOUNDATION (2023: R10,9 million)
• Pets24 has grown into South Africa’s largest online community for everything pet
• R55 million in lease payments paid to land claim beneficiary communities in Nkomazi (2023: R51,3 million)
• 16 320 permanent and 440 fixed-term and temporary jobs provided
• R54,6 million spent on training and developing 8 827 employees across the Group (2023: R56,3 million, 9 088 employees)
• Introduced a Women Empowerment Series customised to each of our sites
• Held our first SHERQ Annual Recognition Awards to celebrate those driving our safety culture

Governance Achievements

• Improved Return on Invested Capital (ROIC) from total operations, excluding Vector to 10.7% (2023: 4.6%)
• R411,6 million paid in income tax (2023: R307,3 million)
• R771,9 million paid in VAT (2023: R576,6 million)
• R225,0 million net finance costs paid (2023: R337,6 million)
• Joined the CEO Pledge to support Government in priority interventions in Energy, Transport & Logistics, and Crime & Corruption

Climate Goals & Targets

Environmental Challenges

• Severely constrained consumer due to high unemployment (33.5% in Q2 2024), high inflation, and high cost of living
• Growing dependency on the private sector to support infrastructure, particularly energy and water
• Evolving consumer choices, including increased demand for convenience and transparency
• Accelerating digital transformation and associated cybersecurity challenges
• Attracting the right skills and maintaining employee wellbeing
• Increasing environmental, social, and governance (ESG) sustainability focus and associated regulatory requirements
• Sugar industry crisis due to Tongaat Hulett and Gledhow Sugar business rescue proceedings
• Load-shedding impacting production schedules and operational efficiency
• Water supply issues in certain areas
• Avian Influenza impacting Rainbow's operations

Mitigation Strategies

• Utilise consumer insights to develop relevant offerings, driving value product tier
• Deliver cost efficiencies and invest to become ‘best in class’
• Increasing energy self-generation and water security initiatives
• Leveraging data to identify trends and preferences
• Investment in digital transformation, including cybersecurity measures
• Implementing a Diversity and Inclusivity framework, investing in employee training and wellbeing
• Investing in sustainable energy, water and waste projects
• Active engagement with Government and industry on key issues
• Resilience programme to protect operations from supply chain interruptions
• Relocating Rainbow's Midrand breeder facilities to mitigate Avian Influenza risk

Supply Chain Management

Responsible Procurement

• R16.8 billion spent on goods and services from B-BBEE suppliers
• Category Management to deal with ‘best in class’ suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Renewable energy generation
• Water conservation

Reporting Standards

Frameworks Used: Integrated Reporting () Framework

Certifications: FSSC 22 000/ISO 18001/FSA food safety certification

Third-party Assurance: combination of internal and external assurance providers

Sustainable Products & Innovation

• Optimizor Special Diets
• Number 1 Boost
• Wild Space

Awards & Recognition

• Top Employer status for the fifth consecutive year

Environmental Metrics

ESG Focus Areas

• Employees
• Communities
• Product and Brand Integrity
• Nutritious and Affordable Food
• Climate Action
• Responsible Sourcing
• Protecting Nature
• Waste Free
• Responsible Water
• Accountability

Environmental Achievements

• 26% more electricity co-generated from bagasse at our Sugar mills
• Biomass used to displace non-renewable energy in two new projects
• Energy resilience planning ramped up across business
• Solar electricity generation increased by 8%
• 20% less raw water used in our Sugar agricultural operations
• 30% less plastic in our new lighter, stronger pallet wrap

Social Achievements

• Management diversity improved by 4%
• Support for women’s advancement recognised in Gender Mainstreaming Awards
• Skills development boosted with over 800 learnerships and apprenticeships
• YouMatter Employee Wellness Programme making an impact
• Sporting events boost Nkomazi community
• Social development programmes extended from four to eight communities near our operations
• R25 million relief fund provided for repair of small-scale grower infrastructure
• 5,7 million meals of DO MORE Porridge provided to help vulnerable young children learn and grow

Governance Achievements

• Improved B-BBEE contribution level from 5 to 4

Climate Goals & Targets

Environmental Challenges

• Increase in industrial action
• Disappointing failure of the Employee Share Ownership Scheme (ESOP)
• Need for technical development in operations
• Safety incidents in operations
• Rainbow operations impacted by power and water interruptions
• Floods in Nkomazi caused significant damage
• Rise in food prices and unemployment
• Technical challenges with Rustenburg Waste-to-Value plant ramp-up
• Severe load-shedding requiring emergency diesel-powered generator capacity

Mitigation Strategies

• Addressing employee needs responsibly while limiting inflationary impacts on consumers
• Investigating options for value transfer to employees
• Implementing reskilling, upskilling and multi-skilling projects
• Strengthening safety culture
• Implementing additional shifts to compensate for lost time
• Prioritising repairs to small-scale growers’ irrigation infrastructure
• Support provided through DO MORE FOUNDATION and food donations
• Implementing additional engineering solutions for W2V plant
• Developing energy resilience projects

Supply Chain Management

Responsible Procurement

• Code of Ethical Business Practices in supplier contracts, 20% weighting for B-BBEE

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Reporting Standards

Frameworks Used: King IV, GRI Standards, SRI of the JSE Limited, SASB

Certifications: FSSC 22000, ISO 22000

Third-party Assurance: GLP B-BBEE (B-BBEE and Carbon Disclosure scores), Karen van der Wath (Carbon and Energy Management Consultant)

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17

See Appendix 1

Sustainable Products & Innovation

• Economy products in Yum Yum Peanut Butter and Nola Mayonnaise ranges, DO MORE Porridge

Awards & Recognition

• Gender Mainstreaming Awards

Environmental Metrics

ESG Focus Areas

• Employees
• Communities
• Portfolio and Brand
• Nutritious and Affordable Food
• Climate Action
• Responsible Sourcing
• Protecting Nature
• Waste Free
• Responsible Water
• Accountability

Environmental Achievements

• 3% lower greenhouse gas (GHG) emissions
• 29% electricity self-sufficient thanks to co-generation, solar, W2V and hydro power
• 84% of total waste was converted into energy, composted, recycled, reused or reworked

Social Achievements

• Rolled out our Purpose and integrated our Purpose and Values in all our people practices
• Developed bespoke Diversity & Inclusivity (D&I) plans per business unit and function, based on our D&I framework
• Lost-Time Injury Rate (LTIR) decreased to 1.26* (2023: 1.75) amidst strong SHERQ focus
• 7,1 million meals provided through the DO MORE FOUNDATION to ease hunger

Governance Achievements

• B-BBEE level 4 rating maintained at latest audit (September 2023)

Climate Goals & Targets

Environmental Challenges

• Decline in consumer demand amidst rising living costs, increasing water and energy costs/shortages and food insecurity
• Labour disruptions at a number of sites during the year
• Restructuring in our Groceries (Beverages) and Baking (Bread, Buns & Rolls and Milling) business units impacting 212 employees
• Community and political party disruptions in the Northern Region

Mitigation Strategies

• Main focus during the year has been on energy, water and affordable nutrition
• Conducting energy and water vulnerability studies at our key sites and planning and implementing energy and water resilience initiatives
• Engaging with stakeholders to develop a roadmap for supporting food security and affordable nutrition
• Upholding approach of addressing the needs of employees while limiting inflationary impacts on the consumer and increasing efforts to drive engagement at a factory level
• Navigating disruptions with care to ensure that governance processes are protected, employees are safe, and opportunities are given for legitimate companies to become part of the supply chain

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Ethical Business Practices
• B-BBEE compliant procurement
• Risk assessment questionnaire for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts
• Energy and water costs/shortages

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: King IV, GRI Standards, JSE Limited (JSE) Sustainability Reporting Index, SASB’s Sustainable Industry Classification System® (SICS®)

Certifications: FSSC 22000, ISO 22000, FSA

Third-party Assurance: GLP BBBEE and Catalyst Solutions (for B-BBEE and Carbon Disclosure respectively); Internal assurance providers for the balance of the content.

UN Sustainable Development Goals

• SDG 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17

Detailed explanation of how initiatives contribute to each SDG is provided in Appendix 1.

Sustainable Products & Innovation

• Fry’s Everyday Value Range
• DO MORE Porridge

Awards & Recognition

• Top Employer by the Top Employer Institute
• Silver Awards at SAGEA Awards
• First place at AgriSETA Excellence Awards
• Standard Bank South Africa KZN Top Business Award