In 2014 the group, together with its external advisers, undertook a comprehensive review of its original sustainability strategy, which was formulated in 2011.
During the year under review, we initiated a strategic shift towards shared value, which emphasises the link to the growth and profit drivers of the business strategy.
The shared value strategy prioritises local supply chain development, which enables us to focus on creating shared value – in both financial and social terms – within our core supply chain operations.
The local supply chain focus is supported by four strategic enablers that contribute to the societal value delivered by our operations, namely:
Governance, ethics and accountability
The sustainability reporting framework highlights TFG’s drive to create shared value for its stakeholders, with a sustained focus on addressing and reporting on the material environmental, social and governance (ESG) issues associated with its operations.
For further information on the strategy, progress against our strategic enablers and our future approach, we refer you to our sustainability overview report.
Local fashion retailers continue to face major sustainability challenges such as:
How can our growth help the thousands of people across our value chain improve their lives?
Global supply chains remain in focus with issues arising such as ethics, human rights, worker health and safety, fair wage initiatives and environmental management.
Nationally, initiatives to support local supply chain development continue to be hampered by policy fragmentation.
The increasing number and complexity of compliance-related ESG initiatives places significant demand on the resources of the sustainability team, limiting the time available to drive more transformative and innovative initiatives.
South Africans face continued pressure on disposable household income.
To address these challenges, TFG has prioritiSed the following:
Greater focus on shared value in our sustainability strategy, demonstrating a clear mix of social, business and financial value.
Continued focus on local supply chain development, with the expansion of TFG’s manufacturing operations and the societal value associated with it.
Engagement with regulators on local supply chain development efforts, the need to address policy fragmentation (including import duties on raw materials) and the establishment of long-term public-private partnerships.
Address the challenges associated with the amended BBBEE codes and the anticipated revisions to King III.
Developing a sustainability data management reporting system to ensure our metrics accurately reflect our social, business and financial values.
Enhancing our ability to deal with compliance challenges in other countries.