- Our Approach
Tiger Brands is committed to operating as an environmentally responsible company and our operations adhere to all relevant environmental regulations. Managing operations in an environmentally and socially responsible manner – “sustainable manufacturing” – is a business imperative for the group. As a manufacturing company, we rely on energy and water for production, and water quality in particular is vital to product quality and consumer safety. We envision sustainable manufacturing as minimising the business risks inherent in any manufacturing operation while maximising the opportunities that arise from improving our processes and products.
Collaborating and engaging with stakeholders
The desire to contribute to a more sustainable world requires understanding, collaboration and action at many levels: by governments, companies, brands and customers. This drive also comes from consumers themselves, who want to understand the environmental impacts of their choices. In addition to our initiatives to reduce and manage our environmental impacts, we have intensified our participation in industry forums to help shape sustainable consumption standards, tools and best practices.
Each year, Tiger Brands voluntarily discloses its performance under the Carbon Disclosure Project (CDP) for carbon emissions and water management. This global standard allows us to benchmark our performance against international peers and to learn from best practices.
In addition, Tiger Brands is a signatory to We Mean Business, committing to three categories flagged by CDP that are most relevant to our business:
- Adopt a science-based emissions reduction target
- Responsible corporate engagement in climate policy.
- Report climate change information in mainstream reports as a fiduciary duty.
We are also working with South Africa’s Council for Scientific and Industrial Research (CSIR) on assessments conducted by the National Cleaner Production Centre to enhance manufacturing industry competitiveness through resource efficiency and cleaner production.
In addition, we are a member of industry bodies such as the National Business Initiative, Manufacturing Circle, Business Leadership South Africa, Consumer Goods Council of South Africa, South African Agricultural Processors Association (SAAPA), South African Fruit and Vegetable Export Council (SAFVEC), South African Fruit Juice Association (SAFJA) and Business Unity South Africa. Through these bodies we support engagements with government on a wide variety of issues including environmental legislation and sustainability topics.
We are committed to ensuring that we work with suppliers like IO Loders Croklaan, DH Brothers ( t/aWilliton,) and Wilmar who is a members of the RSPO to ensure sourcing and processing traceable and certified sustainable palm oil. Thus ensuring traceability will guarantee that we know and trust the source of the palm oil. We are concerned by deforestation, loss of biodiversity, and the use of peat lands, all issues associated with palm oil production on plantations. We work with the RSPO certified suppliers who can improve on RSPO’s existing principles and criteria addressing these and other emerging issues.
Tiger Brands is also a founding member of the Multilayer Packaging Forum, a group responsible for developing recycling initiatives for multilayer packaging. This is consistent with our desire for self-regulation.
Finally, we engage with various government departments that have a bearing on the business and upcoming legislation changes through facilitated discussion forums such as the WWF and manufacturing industry debates.
At board level, the risk and sustainability committee provides strategic guidance and leadership on climate change and environmental issues and oversees the implementation and revision of the environmental policy. Operational execution of the strategy and management of the environmental system rests with the group manufacturing excellence department.
Our environmental policy was approved two years ago. In it, we commit to identifying environmental and climate change risks, taking action to address weaknesses, forging strong relationships with relevant stakeholders, developing and implementing a sustainability strategy, striving for continuous improvement, and reporting to the board through relevant committees. We also commit to set targets, and monitor, measure and report on our environmental scorecard against key performance indicators. The policy is available on the Tiger Brands intranet and website and communicated internally to relevant stakeholder forums. Our manufacturing and distribution operations conduct policy training for all relevant employees.
Our environmental strategy is focused on improving environmental performance in key areas, shown below, and forms the framework for addressing identified priorities in our current organisational and external environment. By improving our environmental and social sustainability performance, we will generate economic benefits for stakeholders.
Our environmental control system covers:
• Policies and procedures
• Responsibilities and accountabilities for environmental management
• Environmental legal compliance
• Waste, water, energy, pollution, recycling, climate change management
• Continuous improvement
• Monitoring and performance measurement of systems.
Related training is conducted site by site after changes to the policy and procedures. In addition, training is part of each site’s induction programme, highlighting the requirements and responsibilities, and informing employees how to access policies and documents.
Environmental sustainability – continuous improvement
While our primary focus is on the five most material aspects of our environmental strategy (water, energy, packaging, waste and carbon emissions), our manufacturing operations also test air emissions from boilers, ventilation areas, disposed dust, noise, carbon monoxide and carbon dioxide levels in line with legislation.
Our primary certification process in our manufacturing operations is the stringent global ISO 14001 standards. At year end, 95% of South African sites were certified.
Subsequently, ISO 14001 has been amended in line with Annex SL, which is the new high-level structure for ISO management system standards. The transition deadline to meet the new standard is September 2018, and appropriate plans are being considered and implemented.
As we pursue our key targets, we measure indicators as two categories:
• Primary measure indicators: readily available measures to track current performance
• Secondary measure indicators: targets or activities that relate to a gap analysis or benchmark. These may be used to improve primary measure indicators.
Our manufacturing sites submit monthly performance data on these environmental scorecard indicators. They also provide air emissions testing reports from boilers, ventilation areas, dust, noise, carbon monoxide and carbon dioxide levels.
Global water scarcity is expected to increase substantially in the coming decades. In South Africa, this trend is likely to affect the availability, cost and quality of water – a critical input in our manufacturing processes. We use water to process products and as a key ingredient in many products themselves. In addition, given that the bulk of our products are for human consumption, water quality impacts the quality – and safety – of these products.
South Africa is classified as a water-stressed region which elevates water management to both a risk and critical success factor for Tiger Brands. We have several initiatives underway to improve our direct use of water, including the possible use of recycled and grey water at some facilities and water-saving schemes which have helped to reduce the volume of municipal water used each year.
The bulk of our water comes from municipal sources, and we have recently started monitoring consumption, as well as water availability and reliability by river basin and water management area source. We also interact with the government, Department of Trade and Industry (Dti) municipalities and water boards. This enables the group to influence legislation, build partnerships in the industry and to learn from organisations using sustainable best practices that Tiger Brands can apply to internal processes.
We recognise that we have a responsibility to promote responsible water use throughout our operations, and to also encourage our suppliers to do the same. We have focused on enhancing agricultural water efficiency programmes with suppliers, specifically for water-intensive crops, such as tomatoes, beans, fruits and sugarcane.
In 2016, Tiger Brands again participated in the CDP’s water disclosure programme. Our response – and further detail on our approach to water stewardship – is available on our website.
We are committed to using water efficiently across our operations and ensuring our operations do not compromise local communities’ right to water. We conduct water resource reviews across existing and new factory sites and focus our interventions in priority watersheds.CDP - Water-South-Africa-2016-Executive.pdf
Tiger brands has participated in the CDP’s water disclosure program in 2016. Click her to read our CDP water response
Packaging plays a vital role in delivering products to our consumers in a manner that preserves the integrity of the product and protects consumers’ health and safety.
Over the past few years the costs of raw materials have escalated significantly, which has had a direct impact on the costs of packaging, motivating more efficient and sustainable packaging management. Extraction, location and processing can also contribute significantly to carbon emissions and the overall footprint of a product. Where possible, by light weighting our packaging, we are significantly reducing carbon emissions and costs, while directly improving the lifecycle assessment of products. See ‘Reducing the impact of our product through lifecycle assessment’ for examples of this initiative.
Waste management is important to Tiger Brands because when done successfully, it can reduce input costs, lower the cost of waste disposal and improve our standing as a good corporate citizen. Within our operations, the majority of our waste is generated either in our manufacturing processes or as a by-product of these processes.
Waste Management practices differ between developed and developing nations, urban and rural areas, and residential and industrial producers. Consequently, whilst Tiger Brands’ standards are influenced by the South African Regulatory Environment, we always take the local conditions and regulatory environment into account when applying our standards.
Our ambition is to send zero waste to landfill and to build a culture of waste segregation. To achieve these goals we place an increasing emphasis on reduction, reuse and recycling of waste generated in our production processes. When all reasonable options have been exhausted to realise this, we ensure that any remaining wastes are disposed of in a responsible manner. We do not currently produce any hazardous waste.
Improving effluent quality
We installed tanks to collect waste vinegar at one operation. The waste will be removed by a waste company for safe disposal. Previously the vinegar was disposed into the municipal effluent line. While not a cost-saving initiative, it will nonetheless improve the effluent quality and reduce the possibility of effluent penalties and water table damage.
Energy is at the core of any manufacturing process, and reducing the energy intensity of our operations is a critical element of our response to climate change. In addition, as South Africa finds itself in a period of energy shortage, smart energy management is now a matter of strategic importance.
Tiger Brands has identified the risks associated with climate change with the greatest potential to impact the company and have consolidated these into the company top risks for mitigation and action as part of the internal risk processes. Among these climate change-linked risks are the availability of water, an essential input both for the agricultural sector upon which we rely, as well as in our manufacturing operations.
The diverse sources of GHG emissions include:
• Direct GHG emissions from sources owned or controlled by the group (scope 1)
• Indirect GHG emissions from generating electricity, heating and cooling, or steam generated off site but purchased by the group (scope 2)
• Indirect GHG emissions (not included in scope 2) from sources not owned or directly controlled by the group but related to our activities (scope 3).
As part of raising awareness in our operations, last year we appointed champions in manufacturing units with the highest impact on carbon emissions and water use.
We also enrolled engineering managers, site services (utilities) managers and technical/artisan employees in national cleaner production training offered by the CSIR. This includes courses on energy management systems, and system optimisation for fans, compressed air and steam. Attendees have now launched focused optimisation projects at their individual business units.
In addition, we participate in the National Cleaner Production Centre programme aimed at introducing cleaner production processes through partnerships, advocacy, technology transfers, tools and capacity building. Multiple assessments were conducted across a number of manufacturing facilities during the year and recommendations are being implemented.
Measuring energy consumption alone is not an accurate measure of improvement because, as the group grows, our consumption requirements and patterns change. To ensure improvements and GHG reductions, we focus on energy and emissions intensity, which shows the reduction in the ratio of energy consumed or emissions produced per ton of product produced. If we are successful, despite a growing business, our intensity levels should decline.
The group’s scope 1, 2 and 3 emissions for the year are shown below. The data covers our South African manufacturing sites, in line with our strategy to initially focus on these operations and extend the programme to international operations in the rest of Africa over the next three to five years.CDP Climate Change 2016 Executive
The lifecycle assessment (LCA) evaluates the environmental impacts of all stages of a product’s life from cradle to grave (ie from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling). They help prevent a narrow outlook on environmental concerns by:
• Compiling an inventory of relevant energy and material inputs and environmental releases.
• Evaluating potential impacts of identified inputs and releases.
• Interpreting the results to help make a more informed decision.
In FY15, we completed LCAs for KOO Baked Beans and All Gold Tomato Sauce (750mℓ and queeze bottle). As a result, we have changed glass packaging where possible, and sourced and trialled an alternative can – all of which reduces the amount of input materials required.
In the review period, two further LCAs were commissioned:
• The cocoa LCA report was finalised. This study found that soil erosion due to lack of crop rotation, fertilisation and pesticides were the key environmental sustainability focus areas. The LCA was not focused on the chocolate production process and this would be the next focus area for identifying any internal GHG emission reduction opportunities.
• A bread LCA review using existing data from the industry is under way and expected to be finalised in FY17.
We have participated in the carbon disclosure project (run by CDP) annually since 2010. Our response – and further detail on our carbon approach and performance.
In light of the imminent introduction of carbon tax, we continue to engage extensively with external parties to establish holistic, practical and affordable solutions on how to reduce our carbon emissions. With the published framework, and proposed carbon tax at R120 per ton of CO2e above the suggested thresholds, the expected impact to the business is substantial.
To ensure the group is adequately prepared, we are considering:
• The extent of our potential liability, taking into account proposed tax-free thresholds
• The effect on suppliers that may be directly liable to pay the carbon tax and seek to pass on these costs
In addition to addressing its own emissions, Tiger Brands will apply pressure on suppliers to improve the fuel efficiency of their operations and reduce their GHG emissions.
We are committed to exceeding legislative requirements on air emissions and will continue to find practical and cost effective solutions to reduce or eliminate all forms of air emissions. From every test and analysis conducted on atmospheric air quality, the manufacturing operations receive a detailed report from which they are tasked to derive action plans for indicated deviations. Tiger Brands prides itself on accurate impartial emissions testing conducted at the manufacturing facilities – the service providers also compile atmospheric emissions reports that are as per the requirements of the air quality act, as well as our specifications. To the business, the aim of air quality management is to protect public health and the environment from the damaging effects of air pollution, and to eliminate or reduce to a minimum human exposure to hazardous pollutants.
In terms of Tiger Brand’s Environmental Control System (ECS) boiler stack emissions are measured at all business units that operate boilers although only two of our boilers fall under amended legislation (November 2013, controlled emitters). We measure sulphur dioxide, nitrous oxide, carbon dioxide and particulate matter (soot) to ensure legal compliance. Independent annual performance audits are conducted at all business units to monitor compliance levels.Commitments for 2017
In 2016, we continued to work with our suppliers on lifecycle assessments to reduce the environmental impact of our products. In particular, we will be looking at the overall impact of cocoa, a key ingredient for our snacks and treats businesses.
Furthermore, we will partner with our small and medium suppliers to help them align with ISO 14001. This will include third-party packaging and ingredients suppliers. At the same time, we hope to sustain and build on our own ISO 14001 certifications.