Environmental stewardship

Significantly reducing our environmental footprint

In promoting environmental stewardship, we are committed to continuously reducing our environmental impact by implementing innovative solutions that optimise energy and water consumption in our operations, to increase the use of renewable energy sources, and reduce greenhouse gas emissions. We are exploring opportunities to reduce the negative impacts of packaging, to minimise waste, effluent and emissions, and to develop innovative product offerings that are good for you and kind to the environment.

During FY20, we will also provide ground-breaking packaging solutions that attract attention at the point of sale and embody the message of the product brand. In terms of circular economy initiatives, we will stimulate sustainable economic opportunities by setting up Tiger Brands recycling hubs, and have at least one by-product beneficiation initiative established. We will continue with our voluntary food waste reduction programme and leverage our brand and marketing activities to inspire positive behaviour change.

Optimising our energy usage and reducing GHG emissions

This year the company has shown an absolute energy reduction of 8,5% and a 5,0% decrease in energy intensity (kWh/ton) year-on-year.

During the year we also delivered capability building initiatives at selected energy-intensive sites through the National Cleaner Production Centre South Africa. During FY20, we will continue to optimise our energy usage through integrated and environmentally friendly energy options. We will be targeting a 10% reduction in energy intensity (kilowatt hour per ton).

REDUCING OUR GREENHOUSE GAS EMISSIONS

Total carbon emissions were down by 6,5% year-on-year, with a reduction in carbon emission equivalent (CO₂-e) intensity from 0,23 CO₂-e/ton to 0,21.

We are implementing various initiatives to reduce GHG emissions at our operations. We have established a partnership with an external service provider to assist our operations to reduce their emissions. The partnership will help us to deliver GHG emissions beyond what has been realised through our existing initiatives. A target of 10% reduction of greenhouse gas (GHG) emissions and defining by-product process energy generation initiatives will be a focus area for FY20.

REDUCING WATER CONSUMPTION

This year our absolute water usage was reduced by 7,2% and the water intensity (kl/ton) was down 5,4% year-on-year. With the increased pressure from municipalities in the Western Cape to reduce water consumption, and with the launch of the industrial water efficiency programme in water-intensive operations, there was extra emphasis and efforts to drive water saving initiatives.

In FY19 we conducted water efficiency assessments in partnership with industry experts from the National Cleaner Production Centre South Africa (NCPC-SA), identifying, evaluating, and recommending the most significant opportunities to conserve water, prevent pollution, and increase productive and efficient water use. We will optimise our water consumption through the evaluation of water reuse opportunities and responsible effluent discharges, targeting a 10% reduction in water use intensity and implementing additional smart metering for steam systems and water intensive process areas.

DRIVING WASTE MINIMISATION

We have conducted waste-stream mapping and waste reduction assessments across a number of our operations. Through the waste stream mapping we have identified and quantified our major waste and effluent streams arising from the production processes, and quantified the base volumes and current costs incurred for different waste streams. Ongoing work is being done to identify further opportunities to reduce waste at source and identify possible alternate use of waste by other entities (waste symbiosis). We have engaged the NCPC-SA to support us in scoping and identifying suitable SME partners for industrial symbiosis implementation. In FY20, the waste reduction target is set at 5% for the operations.

PROVIDING INNOVATIVE PACKAGING SOLUTIONS

Packaging plays a vital role in delivering products to our consumers in a manner that preserves the integrity of the product, promoting convenience, and protecting health and safety. In recent years, the cost of raw materials has escalated significantly, with a direct impact on the packaging costs. This has required more efficient and sustainable packaging management. The extraction, location and processing of packaging can also contribute significantly to carbon emissions and the overall environmental impact of a product through its lifecycle. Where possible, for example by light-weighting our packaging, we are able to significantly reduce carbon emissions and costs throughout the manufacturing and transportation value chain.

In considering the various packaging options, Tiger Brands has completed lifecycle assessments (LCAs). As part of these LCAs, we consider a number of factors including affordability and convenience. Informed by these LCA results, we will be introducing alternative packaging solutions for some of our most popular brands. Recent packaging initiatives include:

Introducing light-weighting across all types of substrates: A large percentage of our aerosol cans and the food cans have been light-weighted thus achieving a 10% reduction in body plate thickness.
Reduced primary, secondary and tertiary packaging: At our beverage factory we have removed flat-boards as secondary packaging on a new product line. All products will now be packed directly onto a pallet using a thinner but stronger shrink; this will reduce factory space complexity and minimises paper packaging. We will be extending these initiatives to the rest of our product range. With the introduction of automated palletisation, we will be looking at the elimination of the use of shrink wrapping for the finished goods.
Using recycled plastics where possible: 85% of our beverages bottle now use recycled PET. We plan to increase this content of recycled PET from 30% to 50% by the end of FY20.
Carefully investigating the use of biodegradable packaging: We are in the testing phase of material made from sugarcane from Brazil; this will be included in all our high-density polyethylene (HDPE) closures and bottles, and enable us to achieve the global green logo.
Replacing current non-recyclable substrates with recyclable alternatives: Flexible materials remain a global challenge. The pyrolysis process is being explored to recycle non-recyclable materials in future, among other potential solutions.

We support reduce, reuse and recycle packaging principles and the waste hierarchy: The circular design and economy approach is adopted when designing packs for any new innovation or renovation. To achieve our goals, we work in partnership with key suppliers and industry bodies (see Responsible marketing and communication practices).

ENVIRONMENTAL INCIDENTS

The period of FY19 has seen the organisation drive root cause analysis on environmental infringements and to ensure that corrective plus preventive measures are put in place. The increase in the frequency of reporting and the site reviews conducted, has further ensured that deviations are dealt with timeously.

Using lifecycle assessments (LCA)

Lifecycle assessments (LCA) are used to evaluate the environmental impacts of all stages of a product's lifecycle from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, to disposal or recycling. LCAs help prevent a narrow outlook on environmental concerns by:

Compiling an inventory of relevant energy and material inputs as well as environmental releases
Evaluating potential impacts of identified inputs and releases
Interpreting the results for more informed decisions.

Responding to the plastics challenge

Plastic has been an integrated part of our lives for more than 50 years. Barely a day goes by when we do not have contact, directly or indirectly, with plastic in some form or another. For Tiger Brands, plastic plays a major role in delivering and sustaining the quality, safety and convenience of many of our products. Plastic's ratio of cost to performance also means that people of all income groups can enjoy its important benefits. While the benefits of plastic are significant, its production, use and disposal also presents some environmental challenges, including most visibly in the form of plastic pollution.

Driving positive behavioural change has a critical role to play in addressing the challenge of plastics pollution. As brand owners, we are raising awareness among consumers through effective communication on our labelling. We are also engaging with the government to incentivise plastic waste pickers and waste collectors, as well as educating our employees to sort at source to reduce complexity down the value chain of recycling. At its end-of-life phase, plastic is too valuable a resource to be thrown away and should not be landfilled and not littered. In South Africa, where there is a viable market for plastics recycling, we are reviewing how we can most effectively use our marketing and labelling to encourage effective recycling.

With the aim of reducing the volume of plastic we use, we are setting some reduction targets that build on the reduction efforts that we have already been taking for several years. Key initiatives include the light-weighting of plastic containers, and reducing the volume of single use plastics, mostly used for packaging. To address the problem of plastic ending up in landfills, we have introduced targets for our PET containers to contain 30% recycled PET, and will be increasing this to 50% in future. This will also include other forms of plastic such as polypropylene, high-density polyethylene and others.

Recognising that we cannot win the war on plastics alone, we are working in partnership with organisations such as the Consumer Goods Council South Africa, Plastics SA and others. Through our own programmes – including our enterprise and supplier development initiatives and corporate social investment projects – we are setting up recycling stations in partnership with others, creating potential job opportunities for recyclers in the informal sector, and raising awareness about recycling. In pursuit of our 2030 "circular economy" ambitions, we are partnering with suppliers, converters, recyclers and other brand owners. At the same time we are continuing to research alternative packaging for our products, looking for solutions that are more environmentally friendly, yet that serve the primary purpose of getting our products to the consumers safely, conveniently and in a manner that prevents possible contamination. We have eliminated all non-recyclable sleeve PVC materials in our value chain and replaced them with PET material which is 100% recyclable.

Promoting sustainable agricultural practices

Our business depends on healthy ecosystems to produce sustainable supplies of wheat, maize, fruit, vegetables and other raw materials. We are using our company's scale and presence, and working with experts, to make a positive impact on the farms, communities and environment where our main raw materials are grown, focusing on those areas where we can have the most impact. We are consolidating codes and practices across our business units into a group standard for sustainable agriculture and livestock farming that will be based on key principles, including:

Using pesticides and herbicides in crops: Only AVCASA and BASOS accredited agriculturists are allowed to give active technical advice on registered chemicals and fertilisers. We are busy with the process to include the use of pesticides and herbicides in suppliers' contracts and testing for chemical residues takes place.
Genetically modified (GM) crops and product labelling: Our priority is to produce products that are safe, meet all regulatory requirements and fulfil our high standards for quality, for the ultimate benefit of our consumers. Our commitment to safety and quality includes all our food ingredients, whether produced from conventional crops or GM crops authorised by regulatory bodies. To address consumer perceptions, we select non-GM cultivars for vegetables where possible. Maize and soya beans grown in South Africa are mostly genetically modified cultivars. We do not use any GM cultivars in Purity baby food products.
Protecting biodiversity: Environmentally benign chemicals are used where possible as part of an integrated pesticide management system to minimise environmental impacts and ensure biodiversity. Crop rotation also prevents biodiversity loss. Good crop-rotation principles are applied in the vegetable supply chain by rotating between vegetables and grains. In summer rainfall areas, planting beans and groundnuts is also part of a crop-rotation system with maize. We are currently investigating the possibility of crop rotation for tomatoes in Limpopo.
Animal welfare: Tiger Brands adheres to recommended best practice in the rearing, transporting and slaughtering of livestock. At all times, the welfare of the animal supersedes commercial interest and our goal is humane treatment that ensures both a good quality of life and a quality end product.