Tiger Brands Limited
Climate Impact & Sustainability Data (2023, 2024)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Health and nutrition
- Enhanced livelihoods
- Environmental stewardship
Environmental Achievements
- 0.6% reduction in total GHG emissions, 0.9% reduction in GHG emissions intensity
- 0.3% reduction in absolute energy use, 0.9% reduction in electrical energy intensity
- 4% reduction in absolute water use, 1.9% reduction in water intensity
- 32.1% reduction in landfill waste intensity
Social Achievements
- Launched six healthier products (four nutrition products and two affordable nutrition products)
- Reached five million consumers through the Eat Well Live Well (EWLW) programme
- R75 million spent on marketing healthier products and nutrition education (11% of total marketing spend)
- B-BBEE level 2 achieved
- R104 million capitalized in the Dipuno ESD Fund
- R54.4 million disbursed through the Dipuno ESD Fund
- R18.3 billion spent with B-BBEE-verified suppliers
- R70.8 million total socio-economic development spend
- 228,648 food hampers distributed to 78,275 beneficiaries
- 14 million breakfasts served by The Tiger Brands Foundation
Governance Achievements
- One fatality (2022: three)
- 0.25 LTIFR (2022: 0.45)
- 57.6% ACI representation at senior management, and 63.6% at top management
- 46% female representation at senior management, and 30% at top management
- 77% of employees completed mandatory ethics training (2022: 65%)
- Zero human-rights-related infringements and complaints
Climate Goals & Targets
- Achieve net zero carbon emissions by 2050
- Zero waste to landfill at all sites by 2030
- Empower good nutrition choices for 100 million African consumers annually by 2030
- Reduce carbon emissions by 45% for scope 1 and 2 emissions by 2030
- Achieve 65% of electrical energy at manufacturing sites from sustainable energy solutions by 2030
- Reduce energy intensity by 30% by 2030
- Reduce water intensity by 30% by 2030
- 50% of total procurement spend towards black/black women-owned suppliers by 2030
- Support 1,000 black enterprises by 2030
- Create 4,000 jobs by 2030
- Build an ESD fund of R400 million through partnerships by 2030
- 75% of food portfolio to meet EWLW nutritional standards by 2030
- Reduce food waste by 20% by 2027
- 50% reduction in waste to landfill by 2025
Environmental Challenges
- Volatile social conditions, variable and extreme weather, increased competition, cost pressures and declining consumer confidence
- Supply chain disruptions due to COVID-19 pandemic, war in Ukraine, and South African civil unrest
- Economic pressures and environmental variability severely impacted small farmers in ESD programme
- Missed annual reduction targets in energy, emissions, and water (except waste)
- One fatality and two serious injuries at manufacturing sites
- Increase in code of conduct and other policy violations, particularly in Grains and Bakeries division
- Increase in fraud and theft, mainly in Albany and Culinary businesses
- Challenges in securing consistent and accurate environmental data
- Limited availability of affordable, high-quality recycled materials in South Africa
- Challenges regarding costs and infrastructure for compostable materials
- Persistent safety and security issues in the Albany route-to-market (RTM)
Mitigation Strategies
- Strategic refocus on five key strategic thrusts for the business
- Dipuno ESD Fund exploring blended financing solutions to reduce farmers’ dependence on loan funding
- Implementation of a clean energy plan and water-risk study
- Restructuring of Food Safety and Quality Centre of Excellence
- Development of MECP Quality pillar at 10 priority sites
- Launch of behaviour-based safety programmes at key sites
- Addressing critical safety issue affecting cleaning staff in manufacturing
- Development of a more sophisticated digital system for the management of sustainability data
- Implementation of a new environmental strategy emphasizing coaching and guiding sites to identify and implement improvements
- Development of a web-based legal register to help stay ahead of legislative developments
- Initiatives to reduce packaging waste and food waste
- Engagement with suitable public responsibility organisations (PROs) for post-consumer packaging waste management
- Development of tools for EPR compliance
- Exploring value-adding circular economy projects for recycled plastic waste
- Working through Consumer Goods Council of South Africa (CGCSA) to develop a voluntary industry food waste reduction framework
- Implementing preventive measures for Albany RTM incidents, including armed security vehicle escorts and site-level measures
- Shifting approach to managing Albany RTM risks by focusing on internal behaviours and lack of basic safety practices
- Rolling out defensive driving training at Bakery sites
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Preferential procurement policy prioritizing contracts with black-owned enterprises
- Supplier self-assessment questionnaire addressing labour practices, conflicts of interest, and basic health and safety
- Due diligence processes for food safety and quality and fraud risk
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events, water scarcity, power cuts
Transition Risks
- Regulatory changes (carbon tax, Climate Change Act), market shifts
Opportunities
- Development of energy-efficient products and processes
- Renewable energy installations
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, IFRS sustainability standards (IFRS S1 and IFRS S2), SASB Processed Foods Sustainability Accounting Standard, JSE Sustainability Disclosure Guidance and JSE Climate Disclosure Guidance
Certifications: ISO 14001, FSSC 22000, ISO 9001
Third-party Assurance: EmpowerLogic (Proprietary) Limited (B-BBEE); Marsh South Africa (risk control audits)
UN Sustainable Development Goals
- SDG 1
- SDG 2
- SDG 5
- SDG 8
- SDG 12
- SDG 13
- SDG 17
The company's sustainability strategy prioritizes 11 SDGs where it believes it can make the biggest contribution.
Sustainable Products & Innovation
- Healthier food products
- Recyclable packaging
Awards & Recognition
- Small Business Development Service Provider of the Year award at the Inaugural National Presidential SMME Awards 2022
Reporting Period: 2024
Environmental Metrics
ESG Focus Areas
- Health and nutrition
- Enhanced livelihoods
- Environmental stewardship
Environmental Achievements
- 9.1% annual decrease in total scope 1 and 2 GHG emissions (tCO2e)
- 6% annual decrease in total electricity consumption
- 5% annual decrease in total water consumption
- 11.9% annual decrease in waste-to-landfill intensity (kg/tonne)
Social Achievements
- Launched KOO Dry Pulses and Ace Baby in spoutless pouches as affordable healthy options
- Scaled core healthier product innovations with a focus on Jungle Corn Flakes and Bran Flakes
- R84 million spent on marketing health and nutrition products, representing 8% of total marketing spend
- Maintained Level 2 B-BBEE contributor status
- R104 million Dipuno ESD Fund
- R54.4 million disbursed through the Dipuno ESD Fund
- R14.3 billion spent with B-BBEE-verified suppliers
- R28.8 million SED spend
- 90 723 food hampers distributed to 64 556 beneficiaries
- 14 million breakfasts served to 74 465 learners through The Tiger Brands Foundation
Governance Achievements
- Completed an expert-led water risk assessment
- Established site-level community engagement steering committees
- Independent survey of the group’s ethics policies and practices completed
Climate Goals & Targets
- Net zero carbon emissions by 2050
- Zero waste to landfill by 2030
- 50% reduction in food waste from 2022 baseline by 2030
- 65% of food portfolio to meet EWLW nutritional standards
- 50% of total local procurement spend towards black/black women-owned suppliers
- 45% reduction in scope 1 and 2 emissions
- 50% reduction in waste to landfill
- 80% of plastic packaging recyclable/compostable
- Reduce water use intensity by 11%
- Reduce waste-to-landfill intensity by 13%
Environmental Challenges
- Ongoing listeriosis class action
- Climate-related disruptions to agricultural supply chain
- Stricter environmental regulations
- Heightened ESG expectations from investors
- Persistent systemic obstacles faced by small-scale farmers
- Skills shortage in critical technical areas
- Water scarcity and energy security issues in South Africa
- Aging infrastructure impacting water consumption
- Limited electronic metering and reliance on manual processes for water management
- Increased food waste and loss
- Limited availability of affordable high-quality recycled materials in South Africa
- Route-to-market incidents in Albany business
- Global supply chain disruptions due to weather events and geopolitical instability
Mitigation Strategies
- Working towards a responsible and expedient resolution of the listeriosis class action
- Implementing a decentralised sustainability approach, embedding ownership of key responsibilities at the site level
- Clean energy plan prioritizing onsite solar installations
- Implementing recommendations from the water risk assessment
- Exploring creative solutions and setting a new baseline for small-scale farmer funding and support
- Investing in employee training and development
- Implementing water-efficient processes and energy-saving technologies
- Implementing circular-economy initiatives
- Improving waste management at manufacturing sites
- Reassessing and adjusting plastic waste and packaging goals
- Strengthening security response plans and implementing preventive measures for route-to-market incidents
- Exploring alternative sourcing solutions within the SADC region
- Transitioning to a centralised digital procurement system
Supply Chain Management
Supplier Audits: Numerous audits conducted annually, focusing on food safety and quality; plans to expand to cover human rights and environmental aspects.
Responsible Procurement
- Preferential procurement policy prioritizing B-BBEE suppliers
- Supplier code of conduct aligning with human rights and ethical sourcing policies
- Requirements for sustainability certifications for palm oil and cocoa suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events affecting agricultural supply chain
- Water shortages affecting operations
Transition Risks
- Carbon tax increases
- Stricter environmental regulations
Opportunities
- Implementing water-efficient processes and energy-saving technologies
- Generating green electricity through solar installations
Reporting Standards
Frameworks Used: GRI Sustainability Reporting Standards, IFRS S1 and IFRS S2 (ISSB), SASB Processed Foods Sustainability Accounting Standard, JSE Sustainability Disclosure Guidance and JSE Climate Disclosure Guidance
Certifications: ISO 14001, ISO 9001, FSSC 22000
UN Sustainable Development Goals
- SDG 1
- SDG 2
- SDG 3
- SDG 5
- SDG 8
- SDG 12
- SDG 13
- SDG 17
The report details how initiatives contribute to these goals.
Sustainable Products & Innovation
- KOO Dry Pulses
- Ace Baby in spoutless pouches
- Jungle Flakes
Awards & Recognition
- Multiple awards at the 2024 Business Engage Gender Mainstreaming Awards