Tiger Brands

Tiger cut emissions with the flick of a switch

Tiger Brands Group is fixing lights at their jam factory and the electrics in their mayonnaise unit as part of their strategy to cut emissions. The South African FMCG giant knows that South Africa’s economy is heavily dependent on coal; it accounts for about 72% of the country’s primary energy consumption. [1] Tiger Brands Group consumes over 60,000 tonnes of it every year, and produces 150,000 tonnes of CO2. [2] To take the lead in reducing carbon emissions in South Africa, the Group initially signed up to the Carbon Disclosure Program (CDP) and committed to cutting its emissions by 15% from 2013 to 2016. [3]

There’s business sense alongside the environmental benefits of reducing greenhouse gas emissions and moving towards ‘sustainable manufacturing’. [4] Tiger is exposed to power outages and unreliable energy from its domestic supply and the South African government is introducing a Carbon Tax in 2016—both of which mean reducing its reliance on fossil fuels will save the company money in the long-term.

Getting more efficient

Tiger’s immediate focus for reducing emissions is on simple, cost-effective changes by making its operations more energy efficient. [5] At the jam factory, it’s replaced the lights and freezer system, saving around 300,000 kWh per year. In its mayonnaise unit, upgrading the assembly line to include an automatic shut-off mechanism means a saving of 100,000 kWh. And the Group’s revamped the electricity transformers at its pasta factory, cutting back on nearly 7.5 million kWh of energy.

Ahead of schedule

The improvements Tiger has made so far put it well below the limits [6] set by South Africa’s National Environmental Management Air Quality Act (NEMAQA). And its overall greenhouse gas emissions from 2013 to 2014 were down by 8%, [7] almost doubling its yearly target of 5%.

Setting targets based on science

Tiger’s short-term 15% target is a strong start, but what it plans to do next will break the mould in South Africa. In the long-term, it’s aiming to cut emissions as far as practically possible, and is one of two South African companies to sign up to a Road to Paris Science-Based Target. That means the Group’s committed to setting reduction targets based on climate-change modelling, and being measured against a scientific yardstick for success.

[1] http://www.eia.gov/beta/international/analysis.cfm?iso=ZAF
[2] http://www.tigerbrands.co.za/wp-content/uploads/energy/Climate%20Change%20Programme%20Response%20Investor%20CDP%202014.pdf
[3] http://www.tigerbrands.co.za/wp-content/uploads/energy/Climate%20Change%20Programme%20Response%20Investor%20CDP%202014.pdf
[4] http://www.tigerbrands.co.za/sustainability-journey/
[5] http://www.tigerbrands.co.za/wp-content/uploads/energy/Climate%20Change%20Programme%20Response%20Investor%20CDP%202014.pdf
[6] http://www.tigerbrands-online.co.za/reports/ir-2014/sus-impact.php#sel=13:1:Hjx,13:35:yyj 
[7] http://www.tigerbrands-online.co.za/reports/ir-2014/sus-impact.php#sel=64:1:5,64:1:5

South Africa
US$2.45 billion
Consumer Staples