Evaluating SDG disclosure of South African JSE-listed food, beverage, and tobacco companies

Abstract

The United Nations (UN) established the Sustainable Development Goals (SDGs) to address various social, economic, and environmental challenges, including climate change and environmental protection. SDG 2, known as Zero Hunger, aims to create a hunger-free world by 2030 through the global transformation of food systems. South Africa, leveraging its agricultural expertise, assumes a pivotal role in alleviating food insecurity across Africa, thereby contributing significantly to the attainment of SDG 2. Corporate disclosure of SDGs holds paramount importance, serving as a reflection of the commitment of companies to addressing social, environmental, and governance issues. This disclosure enhances stakeholders' understanding, facilitates effective decision making, and ultimately fortifies companies' reputations. Various SDG frameworks, such as the KPMG guidance, and the UN Global Compact and the Global Reporting Initiative's business reporting on the SDGs framework, have been developed to foster high-quality SDG reporting. These frameworks provide guidance for the creation of effective SDG performance and reporting. Companies have voluntarily embraced SDG reporting guidance, coupled with adherence to Sustainability Accounting Standards Board (SASB) standards. The latter is set to become mandatory for JSE-listed companies starting January 1, 2024. The voluntary adoption of these reporting standards demonstrates companies' dedication to addressing SDGs in a comprehensive manner, thereby elevating the overall quality of SDG reporting and strengthening their legitimacy in the eyes of stakeholders. The primary objective of this study was to appraise the overall reporting compliance on SDGs and specifically SDG 2 - Zero Hunger among South African JSE-listed companies in the food, beverage, and tobacco sector. This objective was achieved through a meticulous evaluation of integrated and sustainability reports from 12 South African JSE-listed companies in the food, beverage, and tobacco industry, employing a two-part content analysis approach. In the initial phase, the overall SDG compliance of the companies was scrutinised by making use of the KPMG guidance as a benchmark. The second phase of the content analysis focused on evaluating SDG 2 reporting compliance, utilising the UN Global Compact and Global Reporting Initiative's business reporting on the SDGs framework. This dual approach allowed for a comprehensive assessment of the effectiveness of SDG reporting within the South African food, beverage, and tobacco industry, ultimately drawing conclusions regarding the companies' commitment and adherence to SDGs, particularly SDG 2. The findings of this study indicate that South African food, beverage, and tobacco companies demonstrate a relatively low to moderate level of disclosure regarding their compliance with SDGs. These results suggest a need for a more comprehensive approach, emphasising the importance of aligning their sustainability initiatives more closely with the specific targets outlined by SDGs. Furthermore, the study brings attention to a disconcerting deficiency in SDG 2 compliance among South African food, beverage, and tobacco companies, particularly concerning aspects related to product health and nutrition. This underscores the urgency for these companies to enhance their contributions and commitments towards the attainment of zero hunger by 2030. The study advocates for a heightened focus on addressing issues related to food security and nutrition within the context of SDG 2, urging companies to play a more substantial role in achieving this critical global goal. This study offers valuable insights into the SDG reporting practices of South African food, beverage, and tobacco companies. Its purpose was to assist these companies in gauging their progress toward the 2030 Agenda for sustainable development. Additionally, the study serves as a crucial resource for key stakeholders, providing them with essential information about the commitment of South African food, beverage, and tobacco companies toward reducing inequalities, ensuring food safety, and promoting prosperity for all people.