We nourish and nurture more lives every day
Tiger Brands is one of Africa's largest, listed manufacturers of fast-moving consumer goods (FMCG). Our core business is manufacturing, marketing and distributing everyday branded food to middle-income consumers. We also distribute leading brands in the home, personal care and baby sectors.
Deliver top-tier financial results and be recognised by all stakeholders as the best FMCG company in South Africa and most desirable growth company on the continent. We attract the best talent and are recognised as a great place to work.
Our operating model focuses on the consumer, reigniting innovation and leveraging our scale as one Tiger Team – resulting in an agile, lean organisation that responds quickly and is aided by simple ways of working. A key enabler will be improved processes and enhanced systems.
Scope of the report
This report reviews Tiger Brands' environmental, social and governance performance for the period 1 October 2017 to 30 September 2018. It covers issues of particular interest to stakeholders in the environmental, social and governance (ESG) aspects of our operations, namely our shareholders, employees, local communities, non-governmental organisations (NGOs), investors, customers, partners, suppliers and government.
This first supplementary sustainability report is provided in an online format, allowing readers to access specific focus areas or download it as a PDF. Additional material referred to in the report can be accessed or downloaded from www.tigerbrands.com.
The report covers the activities of all our operations in South Africa, as well as those in Cameroon and Nigeria for most indicators such as people, safety and environment. We do not report on our associates.
We also publish an integrated report (our primary report) and annual financial statements. The reporting process for all our publications is guided by the principles and requirements of International Financial Reporting Standards (IFRS), the International Integrated Reporting Council's framework (IIRC < IR > Framework), GRI Standards, the King Code on Corporate Governance 2016 (King IV), JSE Listings Requirements and the Companies Act 71 2008.
We use a combined assurance model to coordinate assurance obtained from management, internal and external assurance providers (see material matters for the review period of the integrated report). As we are still in the process of implementing a centralised data management system, there has been no external assurance of non-financial data in this report. Once the data management system is in place and mature, external assurance on selected key performance indicators will be performed. For this report, assurance is limited to sign-off by executive officers for sections under their control.
Tiger Brands is developing a sustainability strategy to ensure we achieve our true potential - nourishing and nurturing more lives every day. The strategy will align existing sustainability initiatives in the different functions and businesses, covering the sustainability of our products, improved efficiencies of our production facilities, focus on our employees and the communities where we operate, and our wider stakeholder community. Many initiatives are already in place and delivering results, as is evident throughout this report.
Over the next year, we will also map the United Nations Sustainable Development Goals (SDGs) to our operations and activities. Some of these have already been mapped, for example in our corporate social investment focus area and our environmental sustainability strategy.
As an FMCG company, some SDGs are obvious for us:
In addition, we recognise our impact on achieving 2030 targets for SDG 6. Water scarcity, flooding and lack of proper wastewater management hinder social and economic development. Increasing water efficiency and improving water management in all our operations are critical to balancing competing and growing water demands from various sectors and users.
As one of the largest South African FMCG organisations, we also have a significant influence on SDG 8 (decent work and economic growth). Accordingly, we promote inclusive and sustainable economic growth, full and productive employment, and decent work for all. SDG 15 (life on land) is critical for a company relying on agriculture for inputs into its first production facilities.
Once all SDGs have been mapped and approved, we will set targets and report against these. The SDGs are also linked to the South African national development plan.
The Tiger Brands board, supported by the social, ethics and transformation committee, has overall accountability for this report. The board collectively reviewed the content of this report and confirms that it addresses our material issues, and is a balanced and appropriate presentation of the sustainability performance of the group. The board approved this report on 21 November 2018. Assisted by a dedicated reporting team, the committee signed off on the content of the report.
Supporting global initiatives
Tiger Brands takes a collaborative approach to sustainability issues by actively engaging with various forums:
- We participate in the annual climate change and water disclosures of the CDP
- We are a member of the National Business Initiative (NBI), Strategic Water Partners Network (SWPN) and Business Leadership South Africa (BLSA)
- Tiger Brands has been independently assessed against FTSE4Good criteria, and has satisfied the requirements to remain a constituent of the FTSE4Good index
- We are a member of the Consumer Goods Council South Africa.
IR Integrated report: our primary report to stakeholders
SR Sustainability report: supplementary information
AFS Annual financial statements: financial statements and remuneration report, prepared in line with IFRS
Supplementary information on our website (in the downloads tab), or disclosed from time to time.
Highlights and challenges
Safety and health
- 1 fatality in a route-to-market incident
- Group lost-time injury frequency rate (LTIFR) at 0,27
- Lost-time injuries (LTIs) down 14%
- Worst listeria outbreak in South Africa
- Absolute electricity use up 2,7% with a 3,4% increase in electrical intensity (see environmental sustainability for our response)
- Absolute water use dropped 19,3% and water intensity decreased 21,23%
- Significant water savings from our manufacturing facilities in the water-stressed Western Cape
- Invested R60,5 million or 1,8% of total payroll on training
- Trained 1 200 employees in only our value added meat products division, in addition to all other training across the group
- Launched bespoke mentorship and coaching framework
- Committed R32 million to socio-economic development (SED), reaching over 88 000 beneficiaries
- Spent R12,0 billion with BBBEE verified suppliers
- Enterprise and supplier development: R12,3 million to support black farmers and small businesses
- Reduce Flexible plastic by 5% and Rigid plastic by 26% by FY22 (based on the average of2015 to 2018 volumes)
As a leading food manufacturer, Tiger Brands is committed to sustainability. It is integral to our strategy to grow our business while ensuring a sustainable future by reducing our impact on the environment. We expect our suppliers to work with us to achieve our targets.
Environmental sustainability focus areas
|Site and facilities
To ensure that existing and
future buildings will adhere to
the principles of green building
standards wherever possible.
To be leaders of water
2. Water quality, and
3. Promotion of water
|Energy, emissions and
To limit dependency on
To decrease the volume of
organic and inorganic waste
produced on site.
To divert from landfill wherever possible.
|Procurement and products
To prioritise the usage of
products which are
environmentally and socially
Health and safety
Health and safety is a cornerstone of a successful and sustainable business. Reducing the risks of lost-time injuries and fatalities remains a priority of the group’s risk function.
The ultimate health risk management = integrated SHE excellence
Proposed maturity journey health risk management
Review of “current” – to migrate all SHE risk under a SHE/SHEQ organisation
- Occupational health reports to Safety/Risk
Optimise organisation design for occupational health delivery from group to operations.
Rationalise – Service Provider contracts
Embed health risk management into ops for legal compliance
Introduce new processes
Develop and approval of group guidelines (Toolkits)
Standardisation of processes
Training and induction manuals
Generate management data systems
Integrate S-H-R-E (safety, health, risk, environment)
Embed new processes – improved procedures
Internal (inter-business audits)
External (certifi ed occupational health – utilising OSHAS2 standards)
View our people
Our sustainability and our success are directly linked to the well-being of our communities. They are the source of our most valuable asset – our employees – and support our businesses by buying our products.
In the review period, we committed 1,5% of net profit after tax, or R35 million, to community development. Due to cost savings, only R32,6 million was spent, achieving several milestones:
In partnership with the Tiger Brands Foundation, we supported the development and distribution of
placemats and 10 500 posters focused on nutrition education
high-quality, nutrient dense and fortified food packages distributed
direct and indirect beneficiaries reached monthly via the Tiger Brands food and nutrition support programme
beneficiaries in crisis supported through our CSI and employee volunteerism programmes
community members trained in food gardening and community education
View our communities
Tiger Brands’ role in driving environmental sustainability is becoming ever more important to the community around us and to the natural resources that serve us all. Our response is a strategic framework for environmental sustainability that drives continuous reduction in the impact of our operations by improving energy efficiency, reducing greenhouse gas (GHG) emissions, conserving water and striving for zero waste to landfill.
Saving water in a drought-stricken province. Rain may have fallen‚ but farming in the Western Cape is still reeling from the impact of the worst drought in decades.
According to a July report from the World Wide Fund for Nature (WWF), and despite the best efforts of the country’s most efficient agricultural sectors, job losses now total 30 000 with an economic loss of nearly R6 billion and a 20% drop in exports.
The Western Cape is an important region for Tiger Brands, both in terms of its agriculture sector and our manufacturing units in the province. In the review period, these factories focused on saving water and progressing towards self-sufficiency in terms of water supply. After good rainfall in the main catchment areas, mid-October levels for dams supplying our factories were significantly higher than the prior year.
Water levels - Western Cape
View environmental sustainability