SustainabilityTable of Contents

Our sustainability approach.......................................................................................... 2

Our social responsibility................................................................................................. 4

Our people..................................................................................................................................... 4

Our approach..............................................................................................................................................4

2015 overview...........................................................................................................................................5

Commitments for 2016.......................................................................................................................14

Our communities...................................................................................................................... 16

Our approach...........................................................................................................................................16

2015 overview........................................................................................................................................17

Commitments for 2016.......................................................................................................................21

Our role in a transforming society.....................................................................................22

Our approach...........................................................................................................................................22

2015 overview........................................................................................................................................23

Commitments for 2016.......................................................................................................................26

Our customers and consumers............................................................................................27

Our approach...........................................................................................................................................27

2015 overview........................................................................................................................................29

Commitments for 2016.......................................................................................................................32

Our environmental impact..........................................................................................33

Our approach............................................................................................................................. 33

Sustainable manufacturing................................................................................................................33

Collaborating and engaging with stakeholders........................................................................33

Environmental management............................................................................................................34

2015 overview........................................................................................................................... 37

Water...........................................................................................................................................................38

Energy.........................................................................................................................................................39

Packaging..................................................................................................................................................39

Waste...........................................................................................................................................................40

Carbon emissions...................................................................................................................................41

Other emissions......................................................................................................................................43

Commitments for 2016.......................................................................................................... 43

Our sustainability approachSustainability (encompassing social, environmental and economic issues) is managed centrally by Tiger Brands’ corporate affairs function and is therefore built into the group’s corporate affairs strategy. We revisited this strategy in 2015 building on a facilitated dialogue with approximately 85 leaders from across the group. These individuals represented a cross-functional perspective and provided input on what world class corporate affairs and sustainability management should entail and the actions required to close the gap. The outcome of this exercise was a series of short- and long-term actions that we believe will help the group to better create and capture value from conducting business sustainably.

According to this strategy, our strategic priority, ‘making Tiger Brands a better company for the world’ is supported by seven key deliverables that are underpinned by our commitment to being an admired corporate citizen and a demonstrated business case. We have assigned short-term goals for each of the seven deliverables and hope to achieve these in the coming one-to-two years. Beginning in April 2016, we will report against these goals on a quarterly basis on the group website.

The case for sustainability

We support the philosophy that:

1. Good corporate citizenship is intrinsic to Tiger Brands.

2. Tiger Brands believes in a holistic approach to building and enhancing its reputation.

3. Doing good is good business.

4. Tiger Brands does not operate in a vacuum nor in a static environment of “business as usual”.

5. In order to thrive as a corporate organisation in a global context, Tiger Brands will be responsive to and will influence / shape the many environments that face the organisation.

6. Robust stakeholder relationships and engagement both within and outside the organisation are key to creating and unlocking real stakeholder and shared value.

7. The communities in which we operate must be better off because we are there.

8. Reputational and Social capital can be tracked and measured to enhance performance, returns and drive improvement year-on-year.

Within our supply chain, we monitor environmental, social and governance performance through a questionnaire distributed annually to our highest risk suppliers. The results of this exercise are reviewed in collaboration between the procurement and safety, health and environment teams. Our supplier code of conduct will be integrated into our purchasing policy and buyer training in the 2016 financial year.

Tiger Brands’ non-financial reporting is prepared in accordance with the core level of disclosure of GRI G4 principles and guidance, the requirements of the JSE SRI Index, as well as governance guidelines in the JSE Listings Requirements and King III. Tiger Brands fully supports the principles of the United Nations Global Compact Network, which recognises the positive contribution business can make to a more sustainable planet. We are committed to improving our management and reporting of sustainability as an important – and integrated – aspect of our strategy.

Central to achieving the group’s financial and brand growth objectives is managing sustainability and reputation. Key elements include:

Building our reputation internally and externally Promoting the corporate identity to all stakeholder groups Adding value to society with integrity Driving internal communication, aligned to company goals Protecting our license to trade through proper governance and engaging with

stakeholders An integrated sustainability approach.

Stakeholders can submit queries or concerns through a number of channels including our Customer Care and tip-off hotlines.

Our social responsibilityAs responsible corporate citizen, Tiger Brands is conscious of its obligation to support the wellbeing and empowerment of its people, both internal and external. This includes all its stakeholders, from employees and suppliers to its customers and the members of communities in which it operates.

This approach benefits the group’s key stakeholders while also delivering strategic advantage to our business. For example, we recognise that our employees represent our greatest asset. They are the ones who ultimately execute our strategy, represent our brand and deliver our products to customers and consumers. In fulfilling their critical roles, we acknowledge their potential to also become our greatest liability. Their ability to perform would be significantly diminished if they aren’t given the ability to hone important skills, access to wellness support and incentive to excel. It is therefore essential that we provide our workforce with the tools they need to succeed.

This section covers the group’s approach to social stewardship including our people, our communities and our role in a transforming society.

Our people

Highlights Challenges

Implemented our revised group-wide talent management policy that includes leadership assessments

Tiger Brands certified in Top Employer SA survey

Inconsistent HR business processes and functions

Lack of an integrated HR system has resulted in missed decision-making opportunities

Key indicators 2015 2014 2013Employee headcount* 20 591 18 208** 15 048Female employees 3 901 3 555 3 386Learnership participants 264 285 159Total training spend (Rm) 10,8 7,7 10,1Overall staff turnover rate 7,9% 9,6% 10,2%Retention rate of key talent (target 80%)

87% 86% 87%

* Includes international operations but excludes seasonal and casual workers.** Restated

Our approach

HR is overseen by the group HR executive. He is supported by the centres of expertise, who design the group’s people strategy and processes, and the decentralised HR business partners who execute the strategy within the group’s businesses.

The group’s five-year strategy and related targets are focused on building a leading FMCG business in emerging markets. To achieve this, we will need quality people and leaders with the right capabilities and a winning culture that enables employees to thrive.

Accordingly, over the last year, we reviewed our approach to talent and succession management to accommodate the needs of a broader Tiger Brands group. This unified group talent policy ensures we have a complete view of available talent and the appropriate development plans to address any gaps. Integral to this process is a model that enables human resource (HR) practitioners and management to identify and develop the skills that support our strategic goals.

2015 overview

In 2015, the group employed 10 379 permanent staff and 4 222 temporary staff in South Africa, excluding 2 363 seasonal and casual workers. Our total salary bill in South Africa for the year was R3,6 billion, compared to R3,3 billion in 2014.

Outside South Africa, the group employs 3 841 permanent staff and 2 149 temporary staff, bringing the total group workforce to 20 591 (excluding seasonal and casual workers) (2014: 18 208 884).

Our businesses use seasonal and casual workers to fill expected increases in production. For example, during the period when peaches become ripe, we employ additional staff to assist in picking and processing the crop in a timely manner. In other instances, we experience unanticipated spikes in demand as a result of large

Strategic intent

To build a leading FMCG emerging market business by having quality people with the right capabilities, enabled by inspiring leaders and a winning culture

Talent managementLeadership development

High-performance and engaging culture

Skills and capability development

Organisational development and effectiveness

Talent management process and practices

Talent acquisition and integration

Leadership development model

Performance management approach

Build total reward and recognition approach

Impactful industrial relations/ employee relations approach

Functional academies

Brilliant HR basics and one aligned HR team

Harmonise, standardise and simplify HR policy and HR data/scorecard HR operating model/structure i.e. centre of expertise and shared services teams Ways of working (fix basics)

orders or other less predictable events. To meet customer requirements in these occasions, we hire temporary staff as necessary. In 2015, our temporary workforce represented 31% of our total staff complement (6 371 individuals).

It is our long-term intention to convert temporary workers conducting regular and ongoing work to permanent positions within the group. Our goal is to convert 1 500 such individuals in 2016.

While no formal commitment to local hiring is in place, in practice the vast majority of our workers are drawn from the areas surrounding our operations.

Talent management

Our talent management goal is to be in a position to deliver qualified talent supply to the business ahead of demand. This means finding the right people with the right capabilities, sourced internally.

Tiger Brands is building talent sustainably by concentrating on internal appointments and promotions while increasing the investment in training and development to build capability and strengthen the talent pipeline. Key initiatives include a focused management trainee and leadership development programme. During the reporting period, 11 graduates joined Tiger Brands as trainees:

1 customer management graduate in snacks, treats and beverages 1 marketing graduate in TBI Exports 4 engineering graduates in group supply chain (to be seconded to business units) 2 supply chain graduates in group supply chain 2 in technical in the Grains division 1 supply chain graduate in groceries.

Regular talent reviews at appropriate levels ensure high-potential individuals are identified, development plans are agreed, and progress against agreed targets is tracked.

In 2015, we identified opportunity to strengthen our talent management approach in order to enable the business to outperform competitors as well as strengthen our talent pipeline and leadership bench. The Talent Framework and High Potential (HiPo) process was communicated to Exco in March 2015, who gave endorsement to launch the new practices and processes to the business. As part of the change, a group Talent policy has been put in place which provides intent and guidance on how Tiger Brands manages talent going forward.

A talent review process and calendar has been put in place which will enable a group wide view of talent, the identification of talent gaps and a focus on talent development plans to address these. These reviews will occur at a Business, Functional and Group level where talent will be identified, development plans and actions will be agreed upon and tracked.

A HiPo model and process has also been introduced which will enable the identification and development of HiPo talent. A talent deal will be communicated to HiPo employees which will enable Tiger to leverage this talent for business critical issues. Hi-Po employees will be signed off at the Group talent review and will receive the benefits associated with this deal.

Leadership development

Our aim is to have leaders in place with the right levels of capability to inspire and lead people to deliver exceptional performance. In line with the revised approach to talent management, and to ensure we have leaders who can drive our strategy, we reviewed our model for leadership skills. The customised Tiger Brands Leadership competency model was defined and communicated to all leaders during May 2015.

To determine an accurate baseline and parameters for leadership development initiatives, the skills of all middle managers and higher are being assessed in a 360 degree review. At year end, over 90% of these reviews had been completed. A customised leadership development programme will be launched in 2016.

High-performance and engaging culture

This pillar of our strategy is intended to drive high performance through careful performance management paired with strong rewards and recognition structures. We believe that these will help to drive an engaging and committed workforce that will contribute to the group’s success.

In 2015 our overall turnover rate declined to 7,9% (2014: 9,6%). We are pleased with the progress made and are developing metrics to measure and reduce the instances of regretted loss of key talent.

Employee benefits

Tiger Brands generally offers employees in excess of statutory requirements:

Annual leave - All employees receive annual leave in line with or exceeding statutory requirements in the Basic Conditions of Employment Act (South Africa) and similar legislation in other regions in which we operate. Long service is recognised with leave allocations increasing proportionately, where appropriate.

Maternity and paternity leave - The maternity and paternity leave policy and remuneration are in line with statutory requirements, as we believe in supporting employees in their family responsibilities. Tiger Brands also has flexible working conditions for employees in specific roles.

Retirement funding – we have designed our retirement funding based on employee requirements and worker category. These are being reviewed in line with imminent legislative changes.

Medical aid – we offer a closed scheme medical aid to which employees can elect to belong. This is structured on a benefit cost analysis as a very competitive proposition to employees. We have also limited our annual increase to single digits consistently below medical aid inflation over the last three years.

Employees wellness – realising the value of this benefit for our people, we have recently reviewed the offering to extend its reach and further enhance benefits that support employee wellbeing.

Group personal accident – in addition to normal death and disability benefits in each of the retirement funds, we also offer accident cover for all employees.Leave – we have recently reviewed our policy to include leading practice on parenting leave, for example adoption and paternity leave.

Discounted deals – capitalising on the group’s purchasing power, employees enjoy preferential rates for a spectrum of lifestyle purchases.

Tiger Brands regularly tracks market trends, legislation and best practice to ensure our employee benefits remain relevant and competitive to support our people strategy.

Tiger Brands introduced a new short-term incentive scheme was in 2015, focused on strategic and financial objectives. This will more effectively align individual performance with corporate performance.

Labour relations

To ensure a constructive, safe and fair working environment for all our people, we work closely with employee bargaining units to ensure that all employees have a voice in matters that affect them daily.

Our employees enjoy full freedom of association. Some 62% of employees belong to 33 unions at 56 sites, with site management and shop stewards meeting monthly. The three biggest unions are SACCAWU (South African Commercial, Catering and Allied Workers Union), FAWU (Food and Allied Workers Union) and AMITU (African Meat Industry and Allied Trade Union), and these collectively represent 66% of all unionised employees. At each site, unions are represented on forums that monitor employment equity, skills development and any other issues requiring management attention. Tiger Brands continues to work closely with the unions in order to build positive and productive relationships.

Clear communication between staff and management helps to ensure that disputes are resolved and grievances are dealt with appropriately by all parties. Our disciplinary code serves as a guideline to all managers and employees to:

Create a fair and equitable structure for dealing with misconduct Encourage timely corrective action in the event of an employee’s behaviour or

conduct being unsatisfactory or unacceptable.

As part of our workplace culture, scheduled meetings are held daily at production sites. These focus on pertinent issues that improve productivity and safety, and provide a regular opportunity for feedback from our employees.

Tiger Brands complies with the South Africa’s Labour Relations Act and Basic Conditions of Employment Act, the International Labour Organization Conventions, and all relevant legislation and regulation in the areas it operates. In 2015 there were no instances of non-compliance with labour standards

Skills and capability development

We believe training and developing all employees is a prerequisite to creating a competitive advantage. Our people have the opportunity to continually develop themselves through workplace qualifications and shorter, function-specific programmes. Documented objectives and targets are submitted to the sector education and training authority (FoodBev Seta) in our workplace skills plan and annual training report.

In 2015, we invested R10,8 million (2014: R7,7 million) on in-house training and learnerships, delivered through the Tiger Brands Academy in South Africa. During the year, 524 employees benefited from training at the academy, adult basic education and training, and bursaries over a total of 4 036 training days.

Tiger Brands Academy

This internal facility comprises separate academies for the disciplines of supply chain, leadership, finance, customer, human resources and marketing. The academy also offers learnership programmes in fields relevant to the group such as manufacturing, logistics, supply chain and management.

To ensure we develop the right strategic skills, we revised the course content of two key academies during the year:

• Supply chain: after the required skills were profiled and harmonised across the group, new learning plans were rolled out. As example, the shopfloor development project is under way to streamline and standardise these roles. To date, 572 employees in the pilot sites (Boksburg, Isando and Roodekop) have been assessed, learning plans developed and rolled out. Formal learnerships will begin after external providers have been selected. Four more sites have been identified for the next phase and assessments are under way.

Customer: now in its fourth year, 179 learners have completed three-year programmes as sales representatives, field sales managers, customer managers or shopper managers. In addition, 45 learners from the first intake graduated with national qualifications while the balance of learners in the second and third intakes will graduate in 2015 and 2016 respectively. Building on this solid base, we are reviewing the customer academy programme to take these skills to the next level. This includes additional learning programmes for high-potential employees in 2016.

Workplace experience project

Unemployment is a significant challenge in South Africa, particularly among the country’s youth. Tiger Brands is committed to doing its part to create opportunity for these young people by providing workplace experience to selected young people.

Young people received workplace experience in food technology, engineering, marketing, production and operations. These students become a feeder pool for the graduate programme and other entry-level appointments. Around 344 people have completed the programme since 2008 and, wherever possible, are employed by the business.

Adult basic education and training (ABET)

We have an established ABET programme to promote literacy in the group and in 2015 we spent transform. As existing employees complete the ABET programme, the need for this training is diminishing.

External programmes

The Thusani Trust provides bursaries to qualifying black Tiger Brands employees’ children. In 2015, R3,1 million (2014: R4,5 million) was spent on bursaries for 158 students (2014: 186). A total of 371 students have graduated from tertiary institutions since 2007 with the trust’s support, and 27 graduated in 2015.

We provided bursaries for nine engineering students in 2015 through our talent programme. On graduating, these students are incorporated into our talent pool.

Organisational development and effectiveness

Tiger Brands is striving to create an organisational environment that enables performance, motivating employees to contribute to the group’s success.

Top Employer South Africa Survey

Tiger Brands participated in the Top Employer South Africa survey to evaluate its HR policies, practices and processes in enabling business strategy and performance against the best-in-class standards and competitors in SA and abroad. This will provide focus and direction towards building impactful HR processes and driving business performance.

Effective organisational structure

During the year, the HR centre of excellence conducted a review of Tiger Brands’ existing organisational structure. Our aim was to determine the most efficient and effective structure to deliver against the group’s stated objectives. The findings of this review will be presented to leadership in the coming year and taken under advisement.

Brilliant HR Basics and One aligned HR team

Brilliant HR Basics and One Aligned HR team is focused on increasing the effectiveness and efficiency of the HR function. The goal is to shift HR resources from lower-value transactional activities to consulting and strategic work with the assistance of a new integrated HR system in 2016.

Health and safety

The safety of our workers, visitors to our operations, and the public is key to our long-term success. We believe a safe and healthy workplace is both the fundamental right of every person and a business imperative.

The group health and safety policy stipulates our responsibility for maintaining productive workplaces across our company by minimising the risk of accidents, injury and exposure to health hazards for our own people, associates and contractors. Our policies and standards for managing safety, the environment and quality are defined in operating requirements throughout the group. Our manufacturing facilities continue to align with and adopt the requirements and principles of the internationally recognised Occupational Health and Safety Assessment Series (OHSAS) 18001 standard as the framework of an occupational health and safety management system.

The group chief executive officer is ultimately responsible for the safety of employees. He reports to the risk and sustainability committee as well as the audit committee on these matters. Health and safety committees, led by supply chain executives and site management, are responsible for implementing health and safety measures at manufacturing sites.

The Tiger Brands environmental, health and safety risk management programme has been implemented at all our business units. Rigorous operational controls manage known risks and align with international best practice. An accredited independent risk management company assesses implementation and adherence, and provides third-party verification. Any non-conformance is identified and assessed, and risk mitigation and corrective actions are implemented. In addition, compliance audits on applicable laws and regulations as well as the group's occupational safety and health requirements are conducted biannually at each manufacturing operation.

The business impact of disabling injuries is extensive:

Increased expenditure on medical treatment Elevated insurance premiums and deductibles for disabling injuries reported

Decreased productivity due to lost working days.

During the year, all permanent and temporary employees in the manufacturing facilities received health and safety training. We continue to provide our safety managers and supervisors with the requisite knowledge, skills and attitude to recognise hazards and take effective preventative actions to reduce injuries and foster a healthy, safe culture at our manufacturing sites.

In support of our aim to achieve zero fatalities, zero injuries and zero tolerance of unsafe behaviour and practices, during the year a group of our safety managers attended the RISK-STAR training qualification, delivered by SGS – South Africa. This intensive 11-module programme focuses on practical application of the outcomes required for the qualification and has assist our manufacturing facilities to improve key areas, including:

Behaviour-based safety culture Interpreting hazard identification and risk assessments (HIRAs) Rigorous procedures for issuing work permits (such as lockout/tag out) Quality of root-cause analysis and understanding consequences of incidents Educating all employees and contractors on good safety practices and managing

safety outliers Leadership skills for supervisors and safety officers through coaching for behaviour-

based safety Safety audits to reinforce the integration of SHEQ management programmes Enforcing legal standards and a zero tolerance culture on hazardous chemical

substances Implementation requirements of the relevant ISO standards (ISO 14001 and ISO

9001).

We conduct ongoing training needs analysis for employees to identify any health and safety knowledge gaps. This includes specialised training requirements for safety, health and environmental representatives as well as first-aider representatives to raise health and safety awareness.

Our safety programmes include training at induction and periodic refresher training for employees and contractors. In addition, ongoing on-the-job risk assessments are performed to identify safety risks. With a renewed focus on these safety programmes and initiatives, injury rates declined over the reporting period

Route-to-market safety remains a focus area. In 2015, we again recorded a fatality after an attempted armed robbery. We extend our sincere condolences to the family and friends of Michael Nkadimeng and his colleagues at Albany Bakeries. Continuous support on the route-to-market security and resolving safety incidents is provided by external specialists and local police authorities.

In September 2015, contract worker Franck Mamoun A Befoung died in a forklift incident at the Chococam factory in Cameroon. Remedial steps are being taken and we extend our condolences to his family and colleagues.

In June 2015, a major incident was reported at one of our manufacturing facilities, but does not form part of our annual statistics as it was ruled not work-related. The protection of our employees remains paramount and every effort is taken to mitigate the risk to individuals and the group.

As shown below, first aid and lost-time injuries account for a significant portion of the total safety incidents during the year. Accordingly, we continue to deliver safety toolbox talks in multi-disciplinary team meetings to raise awareness on injuries recorded and share lessons learned.

At no point during the year did our operations experience an unplanned shutdown as a result of health and safety issues.

In 2015, we formalised the use of lost-time injury frequency rate (LTIFR), a universal statistic to report on safety performance. By migrating to LTIFR as a group measure for safety incidents, we have eliminated prior subjective interpretation and introduced a measurable performance indicator.Key performance indicator

Target 2015 2014 2013 2012 2011

Fatalities 0 2 1 2 0 0Fatalities per 1 000 employees

0 0,10 0,05 0,13 0 0

LTIFR 0,86* 0,36 0,74 0,67 0,78 1,03

*The target for the new year is based on 8% to 12% improvement on actual performance in the reporting period.

Depending on the nature of each plant, our manufacturing sites have annual LTIFR improvement targets ranging from 8,5% to 11%. In FY15, 18% of our manufacturing sites achieved zero LTIFR, while 63% met their targets.

Box: Activities to improve health and safety

Health and safety is a priority for all managers and executives. Key initiatives introduced in the review period include:

• Developing a workplace health improvement plan for implementation next year• Further integration of safety into business processes, understanding that safety should

be a core business and strategic value • Extensively improving management commitment and leadership and employee

participation as these are key to safety management • In addition, safety skills development programmes and role-based competence matrixes

are being defined and launched for our business units.

Employee wellness

Our employee wellness support programme offers a 24-hour telephonic counselling service, and face-to-face professional counselling. Users can access psychologists, social workers, dieticians, biokineticists, and financial and legal advisers.

In 2014, we invested almost R8 million in on-site clinic services. These include occupational health support, as well as limited primary healthcare, free to all permanent and temporary employees on site. Our clinic in Ashton (Western Cape, South Africa) is also open to the community. Contracted services include an HIV/Aids management programme and a free advisory and counselling service for all permanent and temporary employees.

We also offer all South African employees voluntary membership to our in-house medical scheme that offers cost-effective comprehensive health cover. The scheme has 4 335 principal members (2014: 4 336) and 9 659 beneficiaries.

We have a comprehensive HIV/Aids framework that includes support for HIV-positive employees. In 2015, 331 employees were voluntarily counselled and tested (2014: 584) and 95% of employees who tested positive have enrolled on the programme. Our recorded prevalence rate in South Africa is 1,8% (2014: 2,7%).

Commitments for 2016

With key strategic steps completed in 2015, in the year ahead we fill focus on:

Talent management

Tiger will be able to build Talent sustainability through robust talent management practices and succession management processes. The organisation will shift from an aggressive buy, to a build strategy over the next four years. The shift to build will result in a smaller number of external recruits in comparison to internal appointments and promotions. Secondly, an increased investment in training and development initiatives to build capability and strengthen the talent pipeline. Key initiatives to build talent will include a focused Management Trainee and Leadership development programme. The HiPo process will also enable Tiger to build the talent pipeline and bench. Other key interventions such as onboarding will ensure the success of acquired talent.

Leadership development

Our flagship leadership programmes will help to address the gaps identified in the 360 degree leadership reviews conducted in 2015. We also expect to roll out these reviews to additional leader levels.

Skills and capability development

In 2016 we will work to identify the ‘mission-critical’ skills that are essential to the organisation’s success. With these established, we will then develop programmes to develop them internally.

Organisational development and effectiveness

In January 2016 the group plans to run a customised employee engagement survey. It will be targeted at the leaders who contribute to creating the group’s employment climate and will help us to gauge performance against the broad range of topics that drive motivation and performance.

Brilliant HR Basics and One aligned HR team

With approval received for a new integrated HR system, we expect to begin implementation in the coming year. This will include establishing venders, detailing processes and cleaning up master data. Ultimately, we anticipate that this system will help to standardise and automate the transactional element of the HR function, improving the quality and accuracy of key metrics and freeing up time for the function to pursue more strategic activities.

In the coming year we will be partnering with an external consultant to conduct formal safety audits. These will confirm the sites’ implementation of the group’s health and safety policy as well as adherence to safety standards.

Furthermore, we will be introducing new safety programmes for manufacturing personnel.

Our communities

Highlights Challenges

Invested R24 million (1% of operating profit after tax) in various socio-economic development initiatives.

Partnered with the Nelson Mandela Foundation to distribute food parcels in July.

University of Johannesburg research that showed positive impact of the Foundation’s nutritious in-school breakfast programme

Ensuring the sustainability of philanthropic activities. This includes helping beneficiaries to become independently viable rather than building a reliance on donations.

Growing the Tiger Brands Foundations’ reach without sacrificing the programme’s value

Key indicators 2015 2014 2013Total CSI spend (Rm) 24,2 24,0 22,9Total Foundation spend 15,3 22,4 12,2Number of beneficiaries reached 118 443 107 000 ** 2013 beneficiary data not available

Our approach

Our success as a group is inextricably linked with the wellbeing of our communities. They are not only the source of our most valuable asset – our employees – but are also sustain our businesses by purchasing our products. It is therefore our responsibility to contribute to their welfare. Tiger Brands delivers on its commitment to its communities through its corporate social investment.

Our CSI approach is rooted in the belief that Tiger Brands can add value to people’s lives – and evidenced by our investment in our people, their families and our surrounding communities. We believe that, through socio-economic upliftment, we leave a sustainable legacy, and help to weave a positive and constructive social fabric in each country where we operate.

Tiger Brands’ core CSI programmes continue to address some of the key sustainable development goals of South Africa’s National Development Plan (NDP) and the United Nations by contributing towards the fight against food and nutrition insecurity.

The group encourages employee involvement in community related initiatives that benefit the vulnerable, including orphans, children, youth, women, people infected with HIV/Aids, the disabled and the disadvantaged.

Our CSI strategy is executed through established policies and procedures, overseen by the social, ethics and transformation committee. We regularly review beneficiary organisations to ensure the most effective impact on our communities.

2015 overview

The group again committed over 1% of net operating profit after tax, or R24 million, to community development in 2015, achieving several milestones:

12 million daily meals served in communities each year with the help of Tiger Brands 107 000 food parcels distributed every year 40 000 learners reached via the Tiger Brands nutrition education programme 23 000 school holiday food parcels distributed to learners.

Snapshots in 2015 [box]

Funds raised by our golf day, which we have been running for over seven years, were used to buy a 12-metre container classroom for 45 learners at Elim Early Childhood Development Centre in De Rust, Western Cape. The classroom was painted, decorated and filled with books, stationery and toys by employees of the Purity division as part of their volunteerism initiative.

Our school holiday food parcel project is intended to address food insecurity by supplying learners, food handlers and their families with basic food supplies for the long school holidays in July and December to ensure that learners do not return to school malnourished. In June 2015, 120 employees participated in distributing 12 000 food parcels. Employees from our Western Cape facilities nominated schools from their communities and contributed their time as part of the distribution teams, encouraging and providing career advice to learners. Another 12 000 food parcels were distributed to schools in Mpumalanga, KwaZulu-Natal, Limpopo and Free State.

For Mandela Day 2015, over 100 employees volunteered their time for the elderly and vulnerable children of Ebenezer Hannah Home in Orange Farm, near Johannesburg. Activities covered all the Mandela Day themes: food security, education and literacy, shelter and infrastructure, and service (volunteerism). The volunteers gave the home a much-needed makeover by refurbishing the study centre to make it a more conducive place for children to study, repairing the roof and ceiling, and painting the orphanage houses and playground equipment. They also prepared food for the residents and planted vegetables.

In a 22-year partnership with the Avril Elizabeth Home for the Mentally and Physically Disabled, Tiger Brands has contributed R7,5 million to date from the sale of Elizabeth Anne and Purity toiletry products.

Food security is a natural fit with Tiger Brands, as much of our business is derived from the sale of foodstuffs. We are therefore intimately aware of the critical role our products play in supporting the wellbeing of the population in sub-Saharan Africa.

2015 CSI spending breakdownProject type Geographical presence Impact Donation

(R000)NGOs providing social support to communities

Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal, Mpumalanga

Food provision and cash donation

17 293

Cause-related marketing Gauteng Cash donation 730Nutrition education Gauteng, Eastern Cape, Mpumalanga Food provision 500School holiday food parcel distribution

Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal, Mpumalanga, North West

Food provision 5 140

Humanitarian support/ad hoc donations

All provinces Food provision and cash donation

509

Total 24 172

We believe true transformation is only possible through education – and good nutrition enhances the ability to learn and creates a platform for learners to fulfil their potential at school. In collaboration with the Department of Basic Education and the Mandela Centre of Memory, Tiger Brands has initiated a food parcel distribution programme to alleviate food insecurity in our disadvantaged schools (detailed under Tiger Brands Foundation [link]). Since December 2012, 72 235 learners have benefited from this programme.

Our valuable partnerships with non-governmental organisations (NGOs) and other community organisations are critical to achieving our goals. Key partnerships are summarised below.

Buhle Farmers Academy

Buhle Farmers Academy was established in 2000 to provide practical skills training to farmers on crop, livestock, vegetable, poultry production and farm management. Its purpose is to support and empower new farmers to start up their own profitable farming activities. The academy also provides post-training support to assist farmers in setting up and expanding their farms.

It enrols up to 588 students per annum, with over 5 000 students trained over the past 15 years.

Tiger Brands has supported farmer development through this academy since 2009 by supplying dry foodstuffs for students’ meals. Buhle Farmers has been able to return the equivalent value back into subsidising students who could not otherwise afford the full cost of training.

Afrika Tikkun

Afrika Tikkun was started in 1994 to alleviate poverty under a model that seeks to develop the competencies of South Africans living in townships and using these skills to deliver much-needed developmental services to children and youth. The model focuses on investing in the development of children from infancy into young adulthood and into the world of work.

Afrika Tikkun also provides family support services, early childhood development, career readiness and entrepreneurial development, nutrition, food security and support services, as well as primary healthcare.

Tiger Brands provides food products that help serve over 14 000 weekly meals for beneficiaries in various programmes.

Nelson Mandela Metropolitan University (NMMU) community project

In 2008, the Nelson Mandela Metropolitan University and Tiger Brands collaborated to ensure needy students and communities received vital nutrition.

NMMU provides meals to 682 students to ensure they have the nutritional support to complete their studies and enter the world of work. This way, with Tiger Brands’ support, they endeavour to break the cycle of unemployment and poverty.

The NMMU community project also uses our products to support surrounding communities with food, including 60 orphans from Sinethemba Children’s Home and

Laphumilanga HIV/Aids home-based care centre for children affected by the disease. They also provide 100 daily meals to the community through a soup kitchen operating in Malabar while Noxolo Preschool benefits from food products for 40 learners daily.

Cotlands

Cotlands has cared for thousands of vulnerable children since 1936. From its roots as a baby sanctuary, community-based programmes were introduced in 1999, primarily focused on HIV and nutrition, later adding psychosocial and educational support.

Cotlands now offers early-learning sessions for children from birth to six years who do not have access to formal early childhood development opportunities. We have supported Cotlands since 2012 with food products for all its centres in Gauteng, KwaZulu-Natal, Eastern Cape, Western Cape and Mpumalanga, benefiting over 8 000 vulnerable children and adults.

Tiger Brands Foundation

The Tiger Brands Foundation was formed in order to provide assistance to a broader range of underprivileged people in South African society. It enables the group to develop partnerships with those disadvantaged communities with whom we interact most. It is managed by an independent board of trustees who establish the criteria and procedures that govern the allocation of resources.

The Tiger Brands Foundation owns an effective 5% interest in Tiger Brands Limited and was established in 2010 to enhance our community impact.

The foundation focuses on providing breakfast at schools and implemented the first in-school breakfast feeding programme in 2011 in partnership with the Department of Basic Education’s national school nutrition programme. Initially, this covered six primary schools in Alexandra but has expanded to 64 schools across nine provinces, providing the essential breakfast meal to over 42 000 learners. To date, over 30 million breakfasts have been served to our country’s most vulnerable learners.

Until 2014, the feeding programme was funded by a ‘trickle dividend’ equal to 15% of dividends received from the Tiger Brands shareholding. Given the success of the current feeding programme, the foundation intends to expand its activities to other schools across the country. This has been funded by increasing the trickle dividend from 15% to 30% from January 2015. The foundation intends to add at least twelve more schools which will approximate to 10 000 beneficiaries by the end of the Foundation’s financial year end (February 2016). The Foundation will also provide infrastructural support by donating and building two school kitchens over this period. Furthermore, the Foundation will provide on-going training by providing support the senior management teams of schools where the breakfast programme has been implemented.

Tiger Brands Foundation Snapshot:

42 796 learners receive breakfast daily

1 602 educators / food handlers 42 000 holiday food parcels 64 schools 21 kitchens 9 Provinces

Since inception, the programme has demonstrated that an effective public-private partnership can make a significant difference to the lives of learners via an in-school feeding programme, contributing to improved attendance, class participation and performance while helping to reduce obesity. Recent research conducted by the Centre for Social Development in Africa in partnership with the Department of Basic Education, the Eastern Cape Department of Education and the Tiger Brands Foundation has confirmed this. A 2015 study indicated that our feeding programmes have contributed to a reduced occurrence of wasting or stunting and obesity in learners as well as improved learner performance.

The Foundation also fulfils its mission in partnership with a number of stakeholders, including:

The Department of Basic Education at national, provincial and local level Academic and research institutions (such as University of Johannesburg – Centre for

Social Development in Africa) Beneficiary schools, parents and community leaders Community-based agencies (food delivery partners) Funders/donors wishing to invest in food security and school nutrition programmes. Tiger Brands, the public and shareholders.

The programme has been instrumental in supporting 229 jobs for food handlers who prepare the breakfasts provided by the Foundation. Each food handler is employed by the DBE and is offered stipend by the Foundation.

In the Lady Frere district, Eastern Cape, our in-school breakfast programme covers 27 schools. It supplements the government’s national school nutrition programme, ensuring these vulnerable learners have two nutritious meals per day. In addition, a programme to support these learners over the July and December holidays was established, with food parcels distributed in June 2015.

In the Western Cape and Free State Province, 6040 food parcels were distributed to the learners across 10 primary schools participating in the breakfast programme at the start of the July school holidays, marking the official kick-off to the Mandela Day commemoration.

In March 2015, Meqheleng Primary School in Ficksburg, Free State was awarded the 1st prize in the NSNP Best School Awards. The Foundation sponsors the 1st prize which entails the adoption of the school onto the TBF in-school breakfast feeding programme, as well R450 000 towards the construction of a school kitchen.

On 26 July the Deben Primary School in Kathu, Northern Cape was adopted on to TBF in-school breakfast programme. The programme in Kathu is implemented with the financial support of a corporate partner, Sishen Solar Facility. We are very excited about this development as this is the 1st partnership of its kind for the Foundation.

Commitments for 2016

In the coming year, our CSI team will be considering a new pan-African strategy. This is likely to include a tiered approach to CSI with investment in the following:

Philanthropy, Brand-related CSI, Site and operations-related CSI and

Group CSI focusing on food security.

In addition, the Foundation will be revisiting its strategy, with a particular focus on growing and scaling its impact and partnering with other corporates and foundations. Key considerations include sustainability, impact and strategic alignment with the Foundation’s vision and mission as well as with Tiger Brand’s strategic and commercial objectives.

Our role in a transforming society

Highlights Challenges The Board approved five-year BBBEE

strategy in July, including targets for each of the pillars

Tiger Brands signed a memorandum of understanding with Department of Agriculture and Fisheries committing the group to develop smallholder farmers in five provinces in key commodities as part of its sourcing strategy

Tiger Brands participated in the World Economic Forum in 2015 and became a member for 2016. As part of that, we participated in the Grow Africa Summit, and became a member of a global group on smallholder development

Successfully driving internal programmes to meet the targets in the revised Codes of Good Practice, particularly in preferential procurement

Tiger Brands B-BBEE scorecard

Available

points 2015* 2015 2014 2013

Available

points pre-

2013 2012 2011 2010

Ownership 20 20,3 20,3 19,7 20 19,7 18,4 19,7

Management control 10 7,6 7,6 7,6 10 6,5 6,5 9,6

Employment equity 10 5,6 5,6 5,1 15 7,5 9,6 9,1

Skills development 20 12,9 12,9 11,2 15 8,1 9,1 9,5

Preferential procurement 20 19,2 19,2 18,8 20 18,8 18,8 18,8

Enterprise development 10 7,0 7,0 7,5 15 11,7 10,3 10,1

Socio-economic development 10 10,0 10,0 10,0 5 5,0 5,0 5,0

Total 100 82,6 82,6 79,9 100 77,3 77,7 81,8

Level 3 3 3 3 3 3

*Tiger Brands is now measured in terms of agriculture sector codes as gazetted on 28 December 2012

Our approach

In South Africa, we promote social transformation in the interest of nation building, most notably through the continued advancement of broad-based black economic empowerment (B-BBEE) initiatives. Compliance with B-BBEE and employment equity legislation is a business imperative and our B-BBEE data and reporting is independently assured.

The coordination of Tiger Brands’ transformation actions falls within the mandate of the corporate affairs and sustainability function, ultimately reporting into the group

social, ethics and transformation board committee. Specific aspects of the B-BBEE scorecard performance are overseen by the relevant function. Skills development, for example, is guided by HR policies while preferential procurement is subject to the same procurement governance structures and policies as standard procurement.

Our five-year B-BBEE plan was approved by the group’s board in July 2015. In it, we outline our vision for transformation and targets for each of the five scorecard elements. While the revised Codes of Good Practice are expected to present a challenge in maintaining our current empowerment level of three, our strategy lays out a roadmap to regaining level three status by 2020.

In 2015 we held a workshop on this new BEE strategy, including our plan for implementation with specific focus on skills development and enterprise and supplier development.

In 2015, a working group and a steering committee were formed to drive enterprise and supplier development in partnership with the Department of Agriculture and Fisheries. The former will review potential and current projects while the latter body will fulfil a decision-making role. Five provincial workshops were conducted during the year.

2015 overview

Tiger Brands retained its level 3 contributor rating for the year, as shown below.

The implementation of revised B-BBEE codes will have a significant effect on Tiger Brands, in common with most South African companies. The broad aims of the new codes are to:

Realign existing shareholding and directorship to include black participation Grow customer base of black people Grow black management and other employees categories Establish a significant broad-based BEE status supplier base Grow partnerships by providing financial and other resources to black entities and

communities in order to enhance their sustainability

Key changes include:

Shifted qualification hurdles will likely result in a drop in level at the outset Weighting now more focused on management control, skills development, enterprise

development and black supplier development Priority elements with sub-minimum hurdles are introduced

Although our group falls under the agricultural scorecard, for which new targets are still to be published, we conducted an impact assessment in December 2014 to prepare for the change. In a phased action plan, closely tied to our strategic targets, we aim to return to a level 4 rating within three years and regain our level 3 status by 2020.

OwnershipOwnershipBrimstone (a black empowerment investment company) 1,0%Tiger Brands Foundation 5,0%

Employees Black Managers Trust 2,7%General Staff Trust 0,1%Thusani Trust (beneficiaries are children of black employees)

2,0%

Effective black ownership (using the exclusion principle) 35,9%Total black women 5,6%

Management control

Our board includes five black directors (as defined by the B-BBEE codes), one of whom is female. Management control is driven at group level by the board and chief executive officer.

Employment equity

In South Africa, 92% of our employees are black (African, Indian and coloured), of whom 19% are women, and 1% are people with disabilities.

Tiger Brands’ workforce profile

African Indian

Coloured

White

Disabled

Outside South Africa

Permanent

Temporary

Total Permanent

Temporary

Total staff

2015 7 648 698 1 189 844 53 10 379 4 222 14 601 3 841 2 149 20 591

2014 6 535 726 1 155 836 58 9 252 2 453 11 705 3 673 1 506 16 884

2013 6 178 739 1 192 881 68 8 990 1 500 10 490 3 770 788 15 048

2012 6 260 777 1 027 938 76 9 002 1 079 10 081 1 876 782 12 739

2011 6 172 769 1 067 996 74 9 004 990 9 994 1 751 1 149 12 894

International employees are accounted for only where Tiger Brands is the majority shareholder.

The increase in the number of permanent employees is largely due to the permatisation of temporary employees during the year while the increase in temporary employees is due to a change in legislation regarding the classification of casual workers whose working hours exceed a minimum threshold.

We remain committed to growing our black management talent pool. We realise that employment equity is a long-term challenge and we are investing in junior and middle management levels to develop a pipeline of future black leaders at senior and executive level.

Skills development

Our development programmes are aimed at building a deep skills pool in South Africa. For example, the Thusani Trust provides bursaries to qualifying black employees’ children. In 2015, R3,1 million (2014: R4,5 million) was spent on bursaries for 158 students (2013: 186). A total of 371 students have graduated from tertiary institutions since 2007 with the trust’s support, and 27 graduated in 2015.

Preferential procurement

Tiger Brands procured agricultural commodities, ingredients, packaging, consumables and services totalling R16,5 billion from B-BBEE suppliers in 2015 (2014: R15,6 billion). This represents 57% of our discretionary procurement. Preferential procurement is embedded in our sourcing process in South Africa, and developing and supporting B-BBEE suppliers remains a key element of our procurement strategy.

In addition to tracking progress on our suppliers’ B-BBEE scorecards, we have improved our management information system to allow for better transparency and quicker decision-making at the point of purchase. Compliance under the revised codes is expected to be a longer-term process as suppliers come to terms with new targets and implement the required steps to improve their scorecard levels.

We remain focused on supporting small and medium black-owned businesses, especially in our core spend. As detailed below, we regard this as a business imperative that will contribute to a vibrant and competitive supply landscape in South Africa in the longer term.

Enterprise development

Tiger Brands drives enterprise development projects across its value chain, focusing on growing small businesses that we can support over the longer term. While financial support of R39,4 million (2014: R28,5 million) is a cornerstone of our contribution, the sustainability of these initiatives is driven by the specialist support of our staff to mentor and develop skills in small businesses where required.

Our annual investment in enterprise development equates to 4% of FY15 net profit after tax, spread over most of our businesses. Albany’s owner-driver scheme is the main contributor (at R17,4 million). The balance comprises donations and loans to organisations that presently supply Tiger Brands.

As part of our strategy to comply with the revised B-BBEE Codes, we are increasing our investment in enterprise development to meet requirements within the next two years. While the scope of our investment is broad, the first phases will focus on emerging farmers to play a greater role in our supply chains. To support this initiative, we recently signed a memorandum of understanding with the Department of Agriculture, Forestry and Fisheries and allocated R10 million in the new budget year to fuel this initiative (see sidebar).

Sidebar: Developing small farmers

Tiger Brands procures 1.9 million tons of agricultural commodities and fresh produce annually. Currently, about 70% of this requirement is locally sourced. Where commodities are exported, it is typically due to local supply and quality constraints.

In August 2015, Tiger Brands entered its first private- public partnership of this scale by committing to the strategic development of projects in the agri-sector through our enterprise and supplier development initiatives, as part of the broader economic transformation of the country. Our key undertaking is to provide sustainable offtake agreements to small producers of identified crops. We aim to partner with rural

communities to establish farming cooperatives and will provide technical and financial support where possible.

From a business perspective, the strength and growth of the agricultural sector is vital to us. This agreement will help us deliver on our supply chain strategy to increase the local supply of raw material. It also gives us the opportunity to build on our existing smallholder development initiative (tomato farmers) and to expand to other products. While we have a broad scope (that includes a variety of crops) within the agreement, the pilot project will focus on tomatoes, maize, sunflowers and beans.

This leverages our position as a key player in food security in South Africa, and reinforces our social licence to operate.

This partnership demonstrates our support of government’s aim to develop smallholder farmers as part of accelerating the agro processing sector. It also has the potential to raise productivity, enhance food security and promote rural development, while creating jobs outside farming in the service and production sectors.

Looking ahead, we hope to expand the project to include additional crops and longer-term projects pending the availability of resources and funding.

Human rights

Tiger Brands supports and respects the protection of internationally proclaimed human rights and endeavours to ensure the group is not complicit in any related abuses. Our human rights policy outlines our stance, namely that we do not tolerate discrimination of any kind, nor any form of forced or child labour. This policy is overseen by HR and reported into the social and ethics committee. There were no reported incidents of human rights violations in 2015.

Tiger Brands is a signatory to the United Nations Global Compact.

Commitments for 2016

With the implementation of its new transformation strategy, Tiger Brands aims to achieve a level three contribution level under the revised codes by 2020 by spending a total of R73.4 million cumulatively on various B-BBEE initiatives and by redirecting a total of R2.4 billion. Our response to skills development and enterprise and supplier development – the two areas identified as the most significant gaps – will be particularly important in achieving this ambition.

To this end, we will continue to work in partnership with the Department of Agriculture, Forestry and Fisheries to develop smallholder farmers in South Africa, providing them with opportunities to participate in Tiger Brands’ supply chains.

We are currently exploring a partnership with the Ethiopian Agriculture Transformation Agency on a pan-African approach to smallholder farmers for Tiger Brands.

We also plan to develop a new learnership programme with a specific aim of improving diversity within our talent pipeline. Our 2016 intake will be focused on achieving our obligations related to the new codes and strategy.

Our customers and consumers

Highlights Challenges Consumer complaints declined 2%

from 2014 as a result of our continued focus on resolving consumer complaints rapidly, and on quality assurance in our supply chain

The health of our brands far surpasses that of our competitor in most of the 21 categories we track. In nearly all categories, this gap has widened in the past year

The retail market is experiencing a low-growth trend, putting pressure on group top line growth as a result

Key indicators 2015 2014 2013Number of consumer complaints

20 390 20 905 20 439

Our approach

Our customers are the retailers and wholesalers that we distribute to in South Africa. We segment our major customers by channel (such as modern trade, general trade and pharmacy), by chain (i.e. major retailers and cash-and-carry shops) and by format (including hypermarkets, supermarkets and spazas). To ensure strong customer relationships, dedicated customer executives and key account managers work in functional teams to manage each customer and business unit directly.

Our consumers are those individuals that consume our products. 95% of the households in South Africa use our products every day, and our products are sold in over 20 countries across Sub-Sahara Africa.

Satisfied customers and consumers ensure the sustained and profitable growth of our company, and we therefore take our engagement with both groups of stakeholders seriously. The consumers shape our overall strategy and underpin our brand innovation and marketing strategy. This consumer-centric approach adds value to our company by offering a positive consumer experience which builds brand loyalty, the key to Tiger Brands’ continued success.

Consumer strategy

The Tiger Brands marketing strategy is driven by our focus on the consumer – and how to better satisfy the needs of our consumers in the product areas where we participate in the FMCG market. Its key features include:

The renovation and innovation of our leading brands in order to sustain our position of number one or number one position in the categories in which we participate

Investment in marketing support and innovation to drive our organic and new business growth plans

Continual evaluation of new or adjacent category entry opportunities, either through acquisition or innovation – in particular where we are able to drive expansion based on our leading brand names

Keeping abreast of key consumer trends and adapt our brand marketing strategies to better satisfy their needs

Continually striving to encourage healthier eating by our consumers Taking into consideration the prevailing poor economic conditions, we seek to

provide greater value-for-money to consumers through value offers and portfolio price tiered offerings

In our international strategy, we seek to nurture local brands which we have acquired in the rest of Africa, and to expand our core brands from South Africa into the sub-sahara Afica region.

Customer strategy

The landscape in which we operate continues to undergo significant changes which impact on brand manufacturers and marketers. Key changes to the retail landscape include:

An increasingly crowded trading arena Shifting route-to-market, including independent channel growth Continued rise of the private label brand Increasingly resilient independent trade Sub-channel development in retail Focus on margin The increasing role of data and technology Retailers operating for less Targeted collaboration/ joint business planning Modern trade expanding into the rest of Africa

As a result of these factors and building on our progress to date, we have formulated a strategy based on four strategic priorities:

Growing with customers, focusing on channel, customer and format strategy as measured by top-line growth with customers

Growing in-store, focusing on next-generation Tiger Brands field sales as measured by in-store shelf health

Operational excellence, focusing on optimizing route-to-market and trade category management as measured by in-store category and assortment optimization.

Great place to work, focusing on customer, shopper and operational capability as measured by talent attraction and career path progression of Tiger Brands customer-facing employees.

Underpinning these priorities are our four strategic enablers:

Harmonising customer operations in the field across all categories Customer IT and insight system Joint business planning Building a growth culture in customer teams

Customer performance is measured using three key metrics: customer growth, market share and service levels, including on-shelf availability and promotional and pricing compliance. We set a service level target of between 90% and 95% for customers and consistently perform within this range. We are in the process of strengthening our ability to track on-shelf availability and have set a target of a 50-basis point improvement per annum on a basket of strategic SKUs.

2015 overview

Customer and consumer engagement

Tiger Brands engages with its customers in South Africa and the other countries in which it operates through a number of different channels. We engage our customers on matters concerning category strategy, value chain efficiencies trading terms, pricing and transactional and promotional activities. These engagements are undertaken on regular call cycles as per industry standard and as requested by trade customers. Complaints are handled directly by the sales and/or manufacturing unit.

Our consumer services division manages consumer feedback and complaints. Our in-house consumer services centre is the primary channel for such feedback and addresses all consumer complaints and queries relating to any of our products. Staffed by Tiger Brands employees, the call centre aims to answer all calls within 30 seconds. We have systems in place for managing all types of complaints, including those that relate to food and health safety. These are elevated to the appropriate management levels and dealt with as urgent priority. For all consumer complaints, company feedback is given following an investigation and independent analysis undertaken when necessary. When consumer complaints are reported through the customer, Tiger Brands follows up directly with the consumer. Incidents that require a recall of the product or further quality checks are reported immediately to the respective quality managers.

The number of complaints received by consumers declined 2% in 2015 to 20 390 (2014: 20 905).

Consumer insights

We value consumer insights and invest in continual research surveys, such as the Brand Health Tracker and Nielsen market share research. Brand Health gauges the degree of brand recognition, consumers’ likelihood of choosing our products and how well we satisfy the needs of the market. Tiger Brands tracks brands across 21 different categories and in most of these, the health of our brand is far above that of the nearest competitor and in nearly all categories we have widened the gap in recent years. Nielsen research informs the group of its products’ market share by value and volume, distribution, pricing and product movement.

In addition, consumer research provides the means by which we identify consumer needs and preferences, in regards to current and new products and innovation. This enables us to harness deep consumer truths, or insights, which inform the marketing mix accordingly. Typical consumer research projects conducted within the Tiger business include:

Product testing: testing the likability and evaluating the performance of actual products with consumers

Concept testing: testing a product idea or proposition with consumers to gauge appeal and potential

Usage and Attitude studies: profiling the consumer to understand usage patterns and attitudes towards products and brands

Volumetric/ simulated test market studies: Volumetric modelling (forecasting) used to aid innovation by simulating real world consumer purchasing behaviour

Immersions: spending time with consumers in their homes to better understand how products are used and the role that they play in consumer lives

Pricing elasticity: determining the minimum, maximum and optimal selling price for a product, in order to generate a favourable sales and profit return

We use these insights to gain category understanding, pinpoint consumer needs, develop productive market segmentation models and identify potential market opportunities. These consumer insights are vital to enable us to continually refresh our brands, position our pricing, innovate and develop our marketing strategies. In 2015, key trends emerging from our research included the role of foreign traders in the independent trade, the importance of growing in-store, the need for strong category management tools and the ability to track promotional investments.

Tiger Brands commits significant investment to the research and understanding of changing consumer needstates. Research and development (R&D) for renovating existing products or designing new products is based on this understanding and insight. The Tiger Brands R&D and new product development investment ensures that we are kept abreast of new technological developments that are used to better satisfy consumer needs.

Consumer nutrition and food safety

Tiger Brands is aware of the significant impact it has on the nutrition and thus the health of its consumers. We monitor advances in nutrition and broader health issues, including World Health Organization (WHO) and South African Department of Health public health concerns. We are dedicated to assisting consumers make better food choices so that healthy living is made easier. We were the first South African company to voluntarily initiate the Eat Well Live Well system which includes noting the GDA (guideline daily amount) table on all Tiger Brand products. The GDA notes the five nutrients which have an impact on lifestyle diseases or non- communicable diseases, such as heart disease, type 2 diabetes, obesity and some cancers. This information equips consumers with product information to balance the high risk nutrients, thereby assisting them to make better food choices which might impact their health.

With malnutrition affecting a significant proportion of people in the populations we serve, we are aware of the great responsibility that comes with providing food staples to those in the lower living standards measure (LSM) categories. In line with South African regulation, and to ensure affordable access to good nutrition, we fortify staple foods such as bread and maize meal with key vitamins and minerals such as vitamin A, B1, B2, B3, B6, B9 (folic acid), calcium, iron and zinc.

In addition, we go above and beyond by enriching other products including breakfast cereals such as Morvite, Jungle cereals and Ace Instant. The products are enriched with micronutrients which enhance the product to fulfil a specific nutrient needstate that a consumer may require. Products are specifically developed to target certain requirements, for example Jungle Energy bars are enriched with B vitamins which assist in the release of energy from the food that is consumed.

BOX: Morvite – The all-in-one nutritious breakfast

‘Morvite’, is an enriched sorghum-based breakfast cereal. Low in GI, gluten free and high in anti-oxidant micronutrients, it is affordable, filling and quick to make. It is enriched with 11 vitamins and six minerals. In 2015, Tiger Brands introduced a new ‘sour-free’ version of the cereal in line with research that showed that while some adults prefer a more acrid taste, children and others do not have the same preference.

The South African minister of health [has stipulated that food manufacturers reduce salt in nine key food categories by June 2016. We are committed to improving the nutrition of our products and are working to meet the deadline.

BOX: EAT WELL, LIVE WELL

Tiger Brands introduced its Eat Well, Live Well system in 2009, to encourage its consumers to eat healthierbalanced meals. Products carrying our ‘Eat Well, Live Well’ logo conform to strict nutritional criteria ratified independently on an annual basis by NICUS, the Nutrition Information Centre of the University of Stellenbosch.

The quick-reference Eat Well Live Well logo, paired with the visible GDA information enables consumers to instantly recognise the healthiest options for their meals.

Currently, products such as Tastic Rice, Jungle Oats and some Albany bread variants comply to carry the EWLW logo, and conform to the strict Eat Well, Live Well criteria. The group’s nutritionist works closely with product managers to help them formulate new and existing products in accordance with the criteria.

For more information on Eat Well, Live Well, visit our website. [link to www.eatwelllivewell.co.za]

[Web design: please include the EWLW logo – file to be sent separately]

Generally accepted food-manufacturing standards are rigorously applied and food safety at all facilities is regularly audited by independent assurance providers.

Consumer regulatory compliance and industry participation

Tiger Brands ensures a high standard of compliance to legislation and codes relating to consumers. We comply with the Consumer Protection Act (CPA), the Foodstuffs, Cosmetics and Disinfectants Act and other laws that ensure consumer protection. Areas of compliance refer to aspects of product labelling, pricing policies, product liability and safety, returns policies, marketing, standard terms and conditions and promotional competitions.

With regards to the CPA requirements, Tiger Brands has evaluated the Act and made internal changes across the business where required to ensure compliance. These include changes to processes regarding the running of promotional competitions. We have also conducted internal training to ensure that our personnel are familiar with the provisions of the Act and its applications. This includes training staff at our existing Consumer Services Unit, which addresses consumer complaints.

In addition, we subscribe to the Consumer Goods and Services Industry Code, which is enforced by the Consumer Goods Services Ombudsman. We also adhere to the Advertising Standards Authority Code that ensures responsible advertising to consumers.

Tiger Brands is a member of the Marketing Association of South Africa (MASA) and our group marketing executive serves actively on the board of this industry body. MASA tackles all issues relevant to marketing organisations, but primarily focuses on:

Regulatory matters Education and transformation of marketing skills in South Africa Media research Advertising self-regulation through ASASA

Tiger Brands is compliant to current labelling regulations and continuously engages with government authorities through industry associations on new or amended labelling related regulations.

Responsible selling

Tiger Brands is dedicated to responsible advertising and marketing and is committed to uphold the ASASA code on advertising. We are fully compliant with all regulatory requirements per the various government acts pertaining to marketing and labelling of foods, beverages, personal and home care and baby products.

All aspects of responsible selling skills are addressed within the business units and supported by secretarial and legal services. Furthermore, the Tiger Brands Customer School of Mastery, an internal training programme, covers all key competencies and skills in a market- and customer-related curriculum.

Commitments for 2016

The retail landscape has seen significant changes in the past few years as a result of the recession. Tiger Brands has had to adapt its approach and engage differently with its customers and consumers.

Consumers are seeking additional ‘value’ from supermarket purchases and Tiger Brands has to ensure that our products, which are the preferred choice by consumers, must be available to consumers at all points of purchase at a price which represents ‘value’ to shoppers. This necessitates a strong focus on cost efficiency throughout our value chain and appropriate promotional activation in store, together with accessible pricing.

As we seek to empower our consumers to make better decisions about their nutritional habits, we aim to form strategic relationships with public sector and non-profit partners. Together, we hope to educate children and consumers on healthy eating habits and effective use of the EWLW system and GDA table to that end.

Our environmental impactHighlights Challenges

We continued to strengthen systems and structures to support the execution, performance measurement and continuous improvement of initiatives identified in our scorecard (below)

We are establishing partnerships and social models to manage expectations and co-design solutions.

Ageing infrastructure at factories will require significant capital expenditure to improve efficiency

Water scarcity and draught conditions have a direct impact on the agriculture industry upon which our business is dependent. It also impacts our manufacturing processes.

Key indicators 2015 2014 2013Energy intensity (MWh/ton of product)

0,11 0,11 0,12

Water intensity (kl/ ton of product)

1,98 1,94 1,98

Waste (ton) 0,011 0,017 0,020Packaging (ton) 0,45 0,70 0,86Production CO2e/ton of product

0,22 0,22 0,24

Our approach

Sustainable manufacturing

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 the CSIR (South Africa’s Council for Scientific and Industrial Research) 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.

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.

Environmental management

The Group Supply Chain Executive is responsible for environmental strategy and reports to the Group Exco in this regard. At a 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 is managed by the Group Manufacturing Excellence department.

Tiger Brands’ environmental policy was approved in 2014. In it, we commit to identifying environmental and climate change risks, taking actions to address weaknesses, forging strong relationships with relevant stakeholders, developing and implementing a sustainability strategy, striving for continuous improvement, reporting to the board through the relevant committees. We further commit to set targets, monitor, measure and report on our environmental scorecard against the set key performance indicators. It is available on the Tiger Brands intranet and website and is communicated internally to relevant internal stakeholders’ forums. The manufacturing and distribution operations adopt and signoff on relevant policy training for all relevant employees.

Tiger Brands’ environmental strategy helps the group pursue its goal of improving environmental performance as mandated by its environmental policy. The strategy covers:

• Reducing GHG emissions by reducing energy consumed in the form of fuels and electricity

• Reducing the water consumed and waste generated in our operations

• Streamlining packaging usage in products

• Developing metrics and targets for improvement

• Minimising and measuring air pollutants fine particulate matter

• Reducing emissions of sulphur oxides, nitrogen oxides, volatile organic compounds, carbon monoxide, particulate matter and ammonia.

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 conduct the legislated testing of air emissions from boilers, ventilation areas, dust particle matter disposed, noise, carbon monoxide and carbon dioxide levels.

Our primary certification process within our manufacturing operations is the stringent global ISO 14001 standards. At year end, all but two South African sites were certified (95%). We conduct environmental awareness training as necessary on an ongoing basis to close gaps identified in first-stage audits.

To ensure that our operations are world class and compliant, Tiger Brands has implemented an Environmental Control System (ECS) in partnership with Marsh Risk Consulting. This system was designed in line with the ISO14001 principles and legal requirements and covers all our South African and international operations. Our Group Supply Chain Executive has overall responsibility for the system. Marsh Risk Consulting performs annual risk management and environmental risk audits at all business units. These are based on the Group risk control standards, the ECS, international best practice as well as South Africa’s own legal requirements such as the Occupational Health & Safety Act, the National Environmental Management Act and national building regulations. Performance is communicated to all relevant levels within the organisation.

The ECS covers:

Policies and procedures Responsibilities and accountabilities for environmental management Reporting Environmental legal compliance Waste, water, energy, pollution, recycling, climate change management Continuous improvement Monitoring and performance measurement of systems

ECS training is periodically conducted on a site-by-site basis by Marsh Risk Consulting when there are changes to the policy and procedures. All documents are made available to all sites for employees. In addition, training forms part of each site’s induction program and highlights the requirements, responsibilities and access to policies and documents.

Setting targets

To guide our sustainable manufacturing journey, we have established group-level targets in the key areas of our sustainability strategy. Each business unit is tasked with developing action plans and identifying initiatives in order to improve performance against the key environmental indicators. In line with our strategy, Tiger Brands is committed to achieving the following:

Energy: We aim to reduce the energy intensity of our operations (measured as KwH per kilo of product produced) by 15% by 2016 using 2013 year-end figures as our baseline. To achieve this, we are striving to decrease our intensity by 5% per year between 2014 and 2016.

Water: Projects being implemented across our manufacturing facilities aim to reduce water consumption, while ensuring the quality and integrity of our products. The group hopes to decrease its water use by the same 15% during the same period by reducing consumption by 5% per year.

Waste: Tiger Brands has committed to reduce overall waste by 4% (measured as mass) per annum from 2013 to 2016, resulting in a 12% reduction overall during the period. We aim to recycle or recover energy from by-products with an ultimate goal of zero waste sent to landfill and full recovery of unavoidable by-products.

Packaging: We support initiatives using materials from sustainably managed, renewable resources while considering our packaging and product performance requirements. We are committed to reducing the environmental impact of

packaging (as measured by carbon emissions) by 3% per year between 2013 and 2016.

Carbon emissions: Tiger Brands is committed to ongoing measurement, monitoring and reduction of our carbon footprint wherever possible, however we have not set a quantifiable reduction target.

Other emissions: We adhere to legislated requirements and annual tests and go beyond these requirements for other emissions such as NO x, SOx, volatile organic compounds (VOCs) and particulate matter. No targets have been set however.

As we pursue our key targets, we measure indicators classified into two categories:

Primary measure indicators consist of readily-available measures used to track current performance

Secondary measure indicators reflect targets or activities that relate to a gap analysis and or benchmark. These may be used to improve the primary measure indicators

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The manufacturing site operations submit monthly performance data on these environmental scorecard indicators. They also provide air emissions testing reports from the legislated testing of air emissions from boilers, ventilation areas, dust particle matter disposed, noise, carbon monoxide and carbon dioxide levels.

2015 overview

Our environmental performance in 2015 reflected a mix of challenges and successes. We made significant improvements to our use of packaging and waste and the energy efficiency and carbon intensity of our operations remained constant. Unfortunately our water intensity increased marginally by 2% during the year. Our performance against our environmental targets is summarised below:

Target Progress in 2015

Water Reduce water consumption and water discharges per ton of product produced by 5% for the next three years.

Water intensity increased by 2% from 2014.

Energy Improve energy efficiency by 5% per year for the next three years.

Energy intensity (MWh/ton) remained constant from 2014 levels.

Packaging Reduce packaging use by 3% per year for the next three years.

35% improvement from 2014.

Waste Reduce waste for disposal by 4% per annum

35% improvement from 2014.

Carbon emissions Ultimately, eliminate emissions and greenhouse gases as far as practically possible

While the carbon intensity of our operations remained constant from 2014, the group’s overall emissions grew by 7.2% during the same period.

Water

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 under way 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, 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 2015 Tiger Brands again participated in the CDP’s water disclosure program. 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 that our operations do not compromise the right to water of local communities. We conduct water resource reviews across existing and new factory sites and focus our interventions in priority watersheds.

In 2015, water intensity (as measured by water consumed per ton of product produced) increased by 2% from 2014 levels.

Box: On-line water metering will enable more accurate reading and understanding for high-consumption areas in the Boksburg facility and our bakery sites, and ensure monthly charges from municipality readings are correct.

Box: A project to re-use bottle-washer water for external cleaning, preparation structural cleaning and staff facilities will help to reduce water use.

Packaging

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 lightweighting 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.

Reducing the impact of our product through lifecycle assessment

Tiger Brands is working closely with its packaging suppliers to understand and reduce the environmental impact of its products. Lifecycle assessments considered the cradle-to-grave span of products:

How raw materials were extracted Consumption of resources involved in planning or designing the product Materials and energy used in manufacturing, packaging and distribution Impacts from using the product Waste and pollution created throughout the process and at end-of-life.

The assessments review a range of impacts, including energy use, carbon emissions, water consumption, acidification and other emissions. See the diagramme below for more detail.

These assessments have identified opportunities for significant improvements to the carbon impact of products. Reductions come from a combination of production or transport savings, depending on the specifics of each product. For two examples, see the table below.

Waste

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.

Box: We installed tanks to collect waste vinegar in 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 and carbon emissions

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).

In 2015 we raised awareness in our operations and developed champions in manufacturing units with the highest impact on carbon emissions and water use.

Tiger Brands has enrolled engineering managers, site services (utilities) managers and technical/artisan employees in national cleaner production training offered by 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 (NCPC) programme aimed at introducing cleaner production processes through partnerships, advocacy, technology transfers, tools and capacity-building.

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, Tiger Brands focuses 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 table below shows the group’s scope 1, 2 and 3 emissions for the year. 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.

2015 Improvement (%)

2014 Improvement (%)

2013

Direct GHG emissions (scope 1) 258 392

(0,17) 258 834 13 297 570

Electricity indirect GHG emissions (scope 2)

321 439

11,4 288 515 4 299 509

Other indirect GHG emissions (scope 3)*

7 099 2 599 263 (21) 217

CO2e (tons) 586 930

7,2 547 611 8 597 296

Carbon intensity (tons CO2e/ ton of product produced)

0,22 - 0,22 10 0,24

Carbon emissions per Rm revenue 18,6 2,1 18,2 (17,5) 22,1Energy use (MWh/ton of product produced)

0,11 (5,0) 0,12 5 0,12

*In 2014, scope 3 emissions were limited to air travel. In 2015, we have expanded our reporting to include road logistics which makes year-on-year comparison difficult.

We have participated in the Carbon Disclosure Project (CDP) annually since 2010. Our 2015 response – and further detail on our carbon approach and performance – is available on our website [link to 2015 CDP response].

Carbon tax

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.

Other 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. Sulphur dioxide, nitrous oxide, carbon dioxide and particulate matter is measured to ensure legal compliance. Marsh Risk Consulting completes annual ECS performance audits at all business units and verifies that these stack emission tests plus reduction actions are undertaken after the completed testing organisations which have been contracted by the manufacturing operations send their reports.

Commitments for 2016

In 2016 we will continue 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.