INTEGRATED ANNUAL REPORT 2011

GRI RESPONSES

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Management approach disclosures EN1-EN30

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EN1-EN30

EN 1 Materials used by weight or volume.

Integrated annual report 2011 - Limiting our environmental footprint

Materials are sourced from OEMs and other suppliers and used to support the retail and service nature of the group’s operations. Materials that have a high impact on the environment are monitored.

Materials used	2011	2010	2009
Paper (kg)	954 270	906 039	1 075 867
Solvent (ℓ)	277 268	266 372	215 552
Lubricants (grease and oil) (ℓ)	8 981 255	9 146 730	7 556 528
Tyres (kg)	2 009 720	1 329 242	1 500 089
Batteries (kg)	1 411 086	859 831	977 916

From 2011, divisions report materials used by weight or volume only to ensure comparability of reported data. For some materials, this has effectively increased consumption in kilograms or litres.

EN 2 Percentage of materials used that are recycled input materials.

Integrated annual report 2011 - Limiting our environmental footprint

As Barloworld predominantly represents Original Equipment Manufacturers (OEMs) and principals, opportunities for using recycled materials are limited. Relatively significant items are paper and retreaded tyres. The percentage of recycled paper used is negligible and, for tyres, it is 5.6% of those reported by weight. The significant change in paper for 2011 is reflects clarified definitions.

Recycled input materials used	2011	2010	2009
Paper (kg)	587	1 901	10 922
Tyres (kg)	112 526	124 030	44 762

EN 3 & EN 4 Direct and indirect energy consumption by primary energy source.

Integrated annual report 2011 - Equipment
Integrated annual report 2011 - Automotive and logistics
Integrated annual report 2011 - Handling
Integrated annual report 2011 - Corporate office
Integrated annual report 2011 - Limiting our environmental footprint
Integrated annual report 2011 - Limiting our environmental footprint
Integrated annual report 2011 - Limiting our environmental footprint
Integrated annual report 2011 - Limiting our environmental footprint

Consumption of energy derived from non-renewable resources such as coal and oil drive the group’s greenhouse gas emissions. Aside from the impact energy consumption has on the climate, the availability and cost of energy warrant our significant efforts to reduce consumption across the board in a business-as-usual scenario.

Combined petrol and diesel consumption was 3% down on 2010, driven by a focus on energy saving initiatives.

Petrol and diesel by division (ML)	2011	2010	2009
Equipment	9.04	8.81	9.96
Automotive and Logistics	24.62	26.21	24.89
Handling	5.22	5.06	5.50
Corporate	0.01	0.02	0.02
Barloworld Group	38.89	40.10	40.37

Similarly, electricity consumption for the year was down 2.7%.

Electricity by division (MWh)	2011	2010	2009
Equipment	25 805	24 057	25 644
Automotive and Logistics	52 532	55 527	52 019
Handling	8 594	9 481	9 094
Corporate	365	658	810
Barloworld Group	87 296	89 723	87 567

Consumption by energy source	Diesel (ML)	Petrol (ML)	LPG (Tons)	CNG / LNG (m3k)	Elec. (MWh)
2011	25.78	13.11	52	834	87 296
2010	27.15	12.95	47	961	89 723
2009	27.01	13.36	225	101	87 567

The reduction in the sources of energy consumption above were mirrored in the group’s gigajoule use (refer to the following tables).

Energy by division (GJ)	2011	2010	2009
Equipment	429 070	413 097	471 383
Automotive and Logistics	1 145 665	1 220 966	1 153 890
Handling	230 840	234 696	214 852
Corporate	1 669	2 997	3 592
Barloworld Group	1 807 244	1 871 756	1 843 717

Energy by source (GJ)	2011	2010	2009
Diesel	1 026 831	1 081 984	1 068 748
Petrol	433 937	430 241	445 118
LPG	2 484	2 278	11 053
CNG	29 728	34 250	3 555
Electricity	314 264	323 003	315 243
Total energy	1 807 244	1 871 756	1 843 717

EN 5 Energy saved due to conservation and efficiency improvements.

Integrated annual report 2011 - Equipment
Integrated annual report 2011 - Handling
Integrated annual report 2011 - Handling
Integrated annual report 2011 - Corporate office
Integrated annual report 2011 - Limiting our environmental footprint
Integrated annual report 2011 - Limiting our environmental footprint

This is driven by the group’s aspirational target of improving non-renewable energy efficiency 12% by end-2014 (baseline) 2009.

Absolute savings for material energy sources are reflected in the tables below.

Petrol and diesel by division (ML)	2011	2010	2009
Equipment	9.04	8.81	9.96
Automotive and Logistics	24.62	26.21	24.89
Handling	5.22	5.06	5.50
Corporate	0.01	0.02	0.02
Barloworld Group	38.89	40.10	40.37

Electricity by division (MWh)	2011	2010	2009
Equipment	25 805	24 057	25 644
Automotive and Logistics	52 532	55 527	52 019
Handling	8 594	9 481	9 094
Corporate	365	658	810
Barloworld Group	87 296	89 723	87 567

Energy by source (GJ)	2011	2010	2009
Diesel	1 026 831	1 081 984	1 068 748
Petrol	433 937	430 241	445 118
LPG	2 484	2 278	11 053
CNG	29 728	34 250	3 555
Electricity	314 264	323 003	315 243
Total energy	1 807 244	1 871 756	1 843 717

Energy intensity	Gigajoules per R1 million revenue
Divisions	2011	2010	2009
Equipment	23.0	33.8	27.6
Automotive and Logistics	43.4	49.8	49.8
Handling	49.0	57.4	42.9
Barloworld Group	36.3	45.8	40.7

Energy intensity	Gigajoules per R1 million revenue
Source	2011	2010	2009
Diesel	20.6	26.5	23.6
Petrol	8.7	10.5	9.8
LPG	0.0	0.1	0.2
CNG	0.6	0.8	0.1
Electricity	6.3	7.9	7.0
Total energy	36.3	45.8	40.7

Savings against a business-as-usual scenario due to efficiency improvements are indicated above which shows intensity improvement at group level off the baseline.

At group level, indicative gigajoule (GJ) unit savings in 2011 against a business-as-usual scenario for 2011 are 10.8% or 221 948GJ.

Using similar tables for each energy source in their respective units of measure, the group is able to calculate its unit savings against a business-as-usual scenario and also calculate its financial savings.

Indicative unit savings by material energy source in 2011 against a business-as-usual scenario are (in units of consumption):

•	Petrol and Diesel – 5.54 ML
•	Electricity – 9 080 MWh

Initiatives in place to conserve energy include:

•	Entrenching sustainable development in group strategy
•	Setting targets and entrenching integrated reporting that includes energy consumption
•	Focused communication programmes that include the principle that the cumulative impact of small changes become significant
•	A ‘green’ buildings initiative for existing buildings that includes:
	o	Conducting energy audits
	o	Installing more efficient lighting, heating, cooling and ventilation systems
	o	Installing motion sensors on lights and air conditioning systems
	o	Timing switches on compressors and other appropriate electrical equipment
	o	Using of geyser blankets and reducing of geyser temperatures
	o	Resetting wash bay blowers in car rental operations to optimise time taken to dry vehicles
•	A ‘green’ buildings initiative for new buildings resulted in:
	o	Three new Automotive dealerships include energy efficiency technology with energy savings of up to 30% on average.
•	Reduced air travel and increased use of video conferencing
•	Logistics’ collaboration with the Council for Scientific and Industrial Research (CSIR) in South Africa and others in designing a more energy efficient and ergonomic vehicle that can carry a higher payload and be streamlined enough in its design to reduce fuel consumption and ultimately emissions. The rig travelled 100 000km in the six-month test period, and saved 10.6% in fuel compared to the rest of the fleet running the same route, with the same weather conditions and same payload. The total wind-drag reduction from the Green Trailer conversion also exceeded expectations, at up to 43%. The other major benefit from the significant reduction in fuel use is, of course, lower carbon emission. The 10.6% fuel saving amounted to a massive reduction of 13.77 tons of CO₂ emissions during the test period.
•	UK Handling’s service support fleet of 450 vehicle uses global positioning (GPS) technology and with changes in fleet mix and other technology has reduced fuel consumption by 18%.

EN 6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.

Barloworld uses technological advances in the products and services it provides to limit environmental impacts, particularly energy consumption and emissions. Many of the OEMs we represent are grappling with the issue and innovating continually.

Equipment

Caterpillar is continually improving the energy efficiency of its products, to reduce emissions from its clean diesel engines and maintain fuel efficiency. Cat prides itself in building innovative products that are not only the most reliable machines on the market, but also meet and exceed sustainability targets for highly regulated countries.
At the same time, on every new model that is released onto the market, Caterpillar realizes the need for more efficient machines and better performance to meet customers demand for reduced operating costs.

As an example, a model change to the Caterpillar 374D (available in all BWE territories) includes numerous technological upgrades to make the machine more productive and cost effective. Features like the hydraulic regeneration valve for more efficient operation, allowing the engine to run at lower speeds, saving fuel and extending overall engine life.
Caterpillar Inc. 2020 goals include a 20% increase in customer energy efficiency.

Caterpillar is also leading in cogeneration, examples include greenhouse applications where the exhaust gases (CO₂), heat and power from an engine are utilized. The power generates electricity and, the heat and CO₂ enhance the growing process.

Caterpillar’s acquisition of MWM Holding GmbH (MWM), a leading global supplier of sustainable, natural gas and alternative-fuel engines significantly expands customer options for sustainable power generations solutions. The ability to supply natural gas engines and turbines to complement the traditional diesel engines results in one of the broadest engine offerings in the industry. Dedicated teams in Barloworld Equipment Europe are being trained on gas engines which lead in energy and emission efficiencies.

Over the years, Caterpillar has invested heavily in technology that allows customers to get the most out of their machines improving performance, lowering costs and preventing machine downtime.

For example:

•	Caterpillar equips every Tier 4 interim/stage IIIB engine with ACERT™ technology with an ideal combination of electronic, fuel, air and after treatment components based on engine size, the type of application and the geographic location in which it will work.
•	Cat® MineStar™ System
	o	The New CAT® Minestar™ System is a comprehensive fleet management system for customers in the Mining sector that consists of scalable solutions that assist customers to manage their fleets’ productivity and efficiency. The system’s auto assignment model, using built in algorithms, can manage the truck and shovel system which ensures machines are used as efficiently and productively as possible.
	o	The Terrain capability set of “The New CAT® Minestar™ System” assist end-users, using GPS technology to guide machines, to do the job right the first time, thus maximising productivity and efficiency.
•	AccuGrade™ Grade Control System
	o	Machine control and guidance systems that use laser and GPS technology to ensure customers complete the required job in the shortest possible time, reducing the need for rework and making the surveyors job a lot easier.
•	Cat® Product Link
	o	Technology which allows the customer to monitor and manage his equipment remotely. Faults, service hours and position are sent via GPS or GSM links to a central server which is accessed by the customer using a Cat software package. This allows customers to plan servicing, diagnose problems, manage fuel consumption and even limit the working area of any particular machine.
•	The remanufacturing of products and rebuilding of components, preserves up to 85% of the energy expended during the original manufacturing process.

Automotive and Logistics

•	Leading principals for our motor retail operations continue to develop and introduce energy-efficient, low-emission vehicles, as well as hybrid and electric vehicles
•	Car rental fleets generally comprise vehicles under 12 months old with the latest technology, resulting in overall energy and emissions efficiency. Currently there are 42 Toyota Prius and 56 Honda Jazz hybrid vehicles in the South African car rental fleet.
•	Car rental provides eco-driving tips on hangers in every vehicle. Carbon emissions from rentals are recorded on every invoice. Monthly carbon emission reports are sent to corporate customers, making them aware of emissions resulting from their corporate rentals
•	Clean vehicles are a core component of the customer offering but more efficient use of water has significant economic and environmental benefits while maintaining customer service levels
•	Logistics has introduced a range of innovative products and solutions which include:
	o	Logistics’ collaboration with the Council for Scientific and Industrial Research (CSIR) in South Africa and others in designing a more energy efficient and ergonomic vehicle that can carry a higher payload and be streamlined enough in its design to reduce fuel consumption and ultimately emissions. The rig travelled 100 000km in the six-month test period, and saved 10.6% in fuel compared to the rest of the fleet running the same route, with the same weather conditions and same payload. The total wind-drag reduction from the Green Trailer conversion also exceeded expectations, at up to 43%. The other major benefit from the significant reduction in fuel use is, of course, lower carbon emission. The 10.6% fuel saving amounted to a massive reduction of 13.77 tons of CO₂ emissions during the test period.
	o	Distribution network optimisation tool, CASTE-CO₂, calculates networks according to emissions and can be used as a tool to minimise carbon emissions in a supply chain
	o	CINO is part of a suite of supply chain optimisation products that enables companies to make strategic inventory positioning decisions to optimise the entire supply chain. Effective and efficient supply chains have improved carbon footprints.

Handling

Hyster lift trucks generally offer the best energy efficiency (energy use per load moved) of any manufacturer and emissions are among the lowest in the industry. The OEM supports green technologies through engineering collaboration and extensive internal field and validation testing. Diesel lift trucks are evolving to meet latest US and European emission standards. Electric trucks incorporate systems that recapture energy when braking and lowering loads. Improved product design results in less weight and improved efficiency.

Recyclability is a prime consideration in Hyster lift truck design, as is waste which is reduced through extended service intervals and reduced tyre and component wear.

Hyster is investigating advanced, more efficient battery chemistries and technologies to reduce energy consumption and carbon impact. These also increase productivity and reduce toxic material content.

Examples include:

•	Hyster Reachstackers / Big Trucks – fuel savings of up to 15%, CO₂ reductions
•	Empty container handlers – reduced tyre wear (up to threefold) and fuel savings
•	2t to 5.5t diesel/LPG forklift trucks – fuel savings of up to 15% on the new Fortens range, making Hyster diesel and LPG trucks in this category some of the ‘greenest’ on the market.

UK Handling’s service support fleet of 450 vehicle uses global positioning (GPS) technology and with changes in fleet mix and other technology has reduced fuel consumption by 18%.

Across the group

Barloworld understands the lifecycle implications of its products and solutions. We focus on ensuring maximum and efficient use of the products we sell, rent and lease, including extending their operating lifetime. A relatively high percentage of Caterpillar and Hyster components are rebuilt, prolonging their life and reducing waste.

Hyster’s truck remanufacturing process recovers some 50% of original components whilst their rebuilt engines are 50% to 67% more efficient in energy and labour respectively. Some 90% of a scrapped lift truck can be reclaimed. Some 70% of Caterpillar components are rebuilt.

Barloworld’s automotive, equipment and handling divisions have business models that enable vehicles, plant and equipment solutions to be provided as new or used unit and through long- or short-term rental applications. In the equipment and handling divisions, this is augmented by a significant component rebuild programme. This business model ensures efficiencies and synergies throughout the lifecycle of equipment, plant and vehicles and extended useful lives for these products.

EN 7 Initiatives to reduce indirect energy consumption and reductions achieved.

The group’s principal source of indirect energy is electricity.

Our commitment to improving energy efficiency in terms of fossil fuels and the resulting GHG emissions is reflected in being an early signatory to South Africa’s Energy Efficiency Accord.

In 2009, we set an overall aspirational target of a 12% energy efficiency improvement in our non-renewable energy consumption by the end of FY14, off a 2009 base-line and against a business-as-usual scenario. The target applies to our material energy sources, petrol and diesel as well as to purchased electricity generated from fossil fuels.

The table below shows a 2.7% or 2 427 MWh absolute reduction in 2011 from 2010.

Electricity by division (MWh)	2011	2010	2009
Equipment	25 805	24 057	25 644
Automotive and Logistics	52 532	55 527	52 019
Handling	8 594	9 481	9 094
Corporate	365	658	810
Barloworld Group	87 296	89 723	87 567

Energy intensity	Gigajoules per R1 million revenue
Divisions	2011	2010	2009
Equipment	23.0	33.8	27.6
Automotive and Logistics	43.4	49.8	49.8
Handling	49.0	57.4	42.9
Barloworld Group	36.3	45.8	40.7

Savings against a business-as-usual scenario due to efficiency improvements are shown above, reflecting intensity improvement over the baseline for each energy source.

Using similar tables for each energy source in their respective units of measure, we are able to calculate unit savings against a business-as-usual scenario and also calculate the financial savings.

Indicative unit savings for electricity in 2011 are 9 080MWh.

The annual percentage saving of 3.4% in gigajoule units from 2010 is shown below.

Energy by source (GJ)	2011	2010	2009
Diesel	1 026 831	1 081 984	1 068 748
Petrol	433 937	430 241	445 118
LPG	2 484	2 278	11 053
CNG	29 728	34 250	3 555
Electricity	314 264	323 003	315 243
Total energy	1 807 244	1 871 756	1 843 717

Initiatives to reduce indirect energy include:

•	Entrenching sustainable development in group strategy
•	Setting targets and entrenching integrated reporting that includes energy consumption
•	Focused communication programmes that include the principle that the cumulative impact of small changes become significant
•	A ‘green’ buildings initiative for existing buildings that includes:
	o	Conducting energy audits
	o	Installing more efficient lighting, heating, cooling and ventilation systems
	o	Installing motion sensors on lights and air conditioning systems
	o	Timing switches on compressors and other appropriate electrical equipment
	o	Using of geyser blankets and reducing of geyser temperatures
	o	Resetting wash bay blowers in car rental operations to optimise time taken to dry vehicles
•	A ‘green’ buildings initiative for new buildings resulted in:
	o	Three new Automotive dealerships include energy-efficiency technology with energy savings of up to 30% on average.
•	Continued roll-out of PowerWatch technology in our South African operations which provides real-time electricity monitoring at installed sites and reflects consumption and related emissions against targets. Benefits include awareness and identifying unnecessary power use
•	Reduced air travel and increased use of video conferencing.

EN 8 Total water withdrawal by source.

Integrated annual report 2011 - Limiting our environmental footprint

Although a limited consumer of water, Barloworld acknowledges the scarcity of the resource and strives to use water more efficiently. The group also increasingly recycles water and harvests where possible. Most water is sourced from local municipal and government supply systems. To better understand our water use, and contribute to the knowledge and data on water use, we participated in the 2011 Water CDP.

Most of our water use stems from washing plant, equipment and vehicles.

Water consumption by division (ML)	2011	2010	2009
Equipment	250	256	271
Automotive and Logistics	470	430	505
Handling	45	43	46
Corporate	2	2	21
Barloworld Group	767	731	843

EN 9 Water sources significantly affected by withdrawal of water .

Integrated annual report 2011 - Limiting our environmental footprint

Barloworld’s water use does not directly impact on any water sources. All of our water is obtained from local authorities in the areas where we operate. As water is principally used to wash vehicles, plant and equipment, it is not removed from the areas of source. After proper treatment, it is legally discharged into the local systems from which it was sourced.

EN 10 Percentage and total volume of water recycled and reused .

Integrated annual report 2011 - Equipment
Integrated annual report 2011 - Equipment
Integrated annual report 2011 - Automotive and logistics
Integrated annual report 2011 - Limiting our environmental footprint
Integrated annual report 2011 - Limiting our environmental footprint

The group recycled 81ML (10.6%) of water withdrawn from municipal and government supply systems. The Automotive division recycled16.9% of water withdrawn and Equipment operations in Iberia recycled 15.6%.

Water consumption by division (ML)	2011	2010	2009
Equipment	250	256	271
Automotive and Logistics	470	430	505
Handling	45	43	46
Corporate	2	2	21
Barloworld Group	767	731	843

EN 11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Integrated annual report 2011 - Limiting our environmental footprint

Barloworld operations do not directly affect any terrestrial fresh water or marine environments. Since sites are primarily in industrialised and urbanised areas, they do not impact on protected areas or areas with high biodiversity value.

However, four vehicle maintenance and repair facilities operate in the Kruger National Park in South Africa and a handling branch in Little Rock, Arkansas, USA is adjacent to a National Wildlife protected wetland. The four automotive sites in South Africa occupy an area of 13 091 m² and the handling site is 14 164 m² in extent. These operations have not affected these areas.
The group has therefore not needed to address biodiversity protection or rehabilitation matters during the year, nor have its activities affected threatened species or their habitat. We will consider these aspects in constructing or renovating facilities in future.
EN 12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.

There are no significant impacts on areas of high biodiversity value.
EN 13 Habitats protected or restored.

Barloworld does not impact habitats in any way so no restoration activities are necessary.
EN 14 Strategies, current actions, and future plans for managing impacts on biodiversity.

The group has not needed to address any biodiversity protection or rehabilitation matters during the year, nor have its activities impacted on threatened species or their habitat. The group will take these aspects into account in constructing or renovating any facilities in future. Currently the group does not focus on specific biodiversity impacts of its activities nor is this anticipated to be a material matter into the future, given the locations of its operations.
EN 15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.

No Red List species are affected by any of the group’s operations.

EN 16 Total direct and indirect greenhouse gas emissions by weight.

The group focuses on scope 1 and scope 2 emissions, respectively caused by consuming of fossil fuels and electricity generated from fossil fuels. These are reported in terms of the GHG Protocol corporate standard and units of CO₂e being the universal unit of measure adjusted for the global warming potential of the six Kyoto Protocol greenhouse gases.

The emissions identified by Barloworld include carbon dioxide, nitrous oxide and methane from combustion of petrol and diesel in trucks, machinery and equipment and vehicles, and from the purchase of electricity.

The group has updated its emission factors. Overall the effect is not considered to be material. See table of emission factors (view pdf download - pdf 242kb ).

Consistent with our reduction in energy consumption, group emissions are 8.5% down on 2010 levels driven by energy saving initiatives, focus as well as lower emission factors in in some instances.

Group emissions (CO₂e tons)

Divisions	2011	2010	2009
Equipment	46 102	45 912	52 063
Automotive and Logistics	123 096	133 573	125 752
Handling	19 441	21 415	20 219
Corporate	404	833	1 019
Barloworld Group	189 043	201 733	199 053

Emissions by energy source (CO₂e tons)

Emissions by energy source	Diesel	Petrol	LPG	CNG / LNG	Electricity
2011	76 773	30 676	159	1 697	79 738
2010	74 654	32 033	141	2 036	92 869
2009	74 139	33 056	554	156	91 148

Scope 1 and scope 2 emissions (CO₂e tons)

	2011		2010		2009
Divisions	Scope 1	Scope 2	Scope 1	Scope 2	Scope 1	Scope 2
Equipment	24 722	21 380	23 503	22 409	27 153	24 910
Automotive and Logistics	70 339	52 757	70 142	63 431	66 349	59 403
Handling	14 218	5 223	15 176	6 239	14 356	5 863
Corporate	26	378	43	790	47	972
Barloworld Group	109 305	79 738	108 864	92 869	107 905	91 148

Emissions intensity	CO₂e tons per R1 million revenue
Divisions	2011	2010	2009
Equipment	2.5	3.8	3.0
Automotive and Logistics	4.7	5.5	5.4
Handling	4.1	5.2	4.0
Barloworld Group	3.8	4.9	4.4

Emissions intensity	CO₂e tons per employee
Divisions	2011	2010	2009
Equipment	6.7	7.5	8.1
Automotive and Logistics	13.5	14.1	13.9
Handling	7.5	8.7	8.0
Corporate	3.8	8.5	9.9
Barloworld Group	10.1	11.1	11.0

EN 17 Other relevant indirect greenhouse gas emissions by weight.

Integrated annual report 2011 - Limiting our environmental footprint

Given our wider activities and the nature of our products and solutions, during the year we continued measuring and reporting certain scope 3 emissions. This covers emissions from business air travel and from the South African car rental operations. The annual increase in scope 3 emissions from air travel to 4 767 tons indicates improved reporting rather than increased travel, as data for 2010 (3 120 tons) was incomplete. We are continuing to refine this aspect of our reporting.

We recognises that emissions from our car rental activities are central to our customer offerings and strive to reduce these by providing fuel efficient fleets and having low-emission and hybrid vehicles available for rent. Car rental operations in South Africa produce 86 661 tons (2010: 94 453 tons) of scope 3 CO₂e emissions a decrease of 8.25%. This is an 11.3% improvement in emissions intensities per rental day mainly reflecting the efficiency of new technology and the profile of the rental fleet.
Avis Rent a Car South Africa provides invoices that indicates emissions related to the rental and, in time, will provide offset facilities. Avis Fleet Services also reports emissions to their customers, and it is anticipated that this information would also be relevant to other Barloworld rental fleets in future.

EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved.

Consistent with Barloworld’s reduction in energy consumption, group emissions are down 6.3% on 2010 driven by energy saving initiatives and focus as well as updated emission factors.

Divisions	2011	2010	2009
Equipment	46 102	45 912	52 063
Automotive and Logistics	123 096	133 573	125 752
Handling	19 441	21 415	20 219
Corporate	404	833	1 019
Barloworld Group	189 043	201 733	199 053

Barloworld’s commitment to improving energy efficiency from fossil fuel consumption and resulting GHG emissions is underpinned by being an early signatory to South Africa’s Energy Efficiency Accord.

In 2009, the group set an aspirational target of a 12% energy-efficiency improvement from non-renewable energy consumption by the end FY14 (off a 2009 baseline and in a business-as-usual scenario). The target is applies to material energy sources, petrol and diesel as well as to purchased electricity generated from fossil fuels.

The group have adopted a similar approach for emissions (scope 1 and 2) as these predominantly result from consuming fossil fuels and buying fossil fuel generated electricity.

These targets are incorporated into our strategic planning process and the ongoing management of the business, including performance scorecards.

Greenhouse gas emissions are intimately linked to energy consumption across the group. As a result, the key driver of reduced emissions is more efficient energy consumption as per
EN7 (Initiatives to reduce indirect energy consumption and reductions acheived).

Emissions intensity	CO₂e tons per R1 million revenue
Divisions	2011	2010	2009
Equipment	2.5	3.8	3.0
Automotive and Logistics	4.7	5.5	5.4
Handling	4.1	5.2	4.0
Barloworld Group	3.8	4.9	4.4

Efficiency improvements are indicated in the above table which shows intensities over a three year period for the group and its divisions.

Using this table, we are able to calculate our unit and financial savings in a business-as-usual scenario.

Indicative savings of GHG emissions in 2011 against a business-as-usual scenario are 30 034 tons.

Initiatives in place to conserve non-renewable fossil fuel consumption that is the material sources of the group’s GHG emissions include:

•	Entrenching sustainable development in group strategy
•	Setting targets and entrenching integrated reporting that includes energy consumption
•	Focused communication programmes that include the principle that the cumulative impact of small changes become significant
•	A ‘green’ buildings initiative for existing buildings that includes:
	o	Conducting energy audits
	o	Installing more efficient lighting, heating, cooling and ventilation systems
	o	Installing motion sensors on lights and air conditioning systems
	o	Timing switches on compressors and other appropriate electrical equipment
	o	Using of geyser blankets and reducing geyser temperatures
	o	Resetting wash bay blowers in car rental operations to optimise time taken to dry vehicles
•	A ‘green’ buildings initiative for new buildings resulted in:
	o	Three new Automotive dealerships include energy-efficiency technologies with energy savings of up to 30% on average./td>
•	Continued roll-out of PowerWatch technology in our South African operations which provides real-time electricity monitoring at installed sites and reflects consumption and related emissions against targets. Benefits include awareness and identifying unnecessary power use
•	Reduced air travel and increased use of video conferencing
•	Logistics’ collaboration with the Council for Scientific and Industrial Research (CSIR) in South Africa and others in designing a more energy-efficient and ergonomic vehicle that can carry a higher payload and be streamlined enough in its design to reduce fuel consumption and ultimately emissions. The rig travelled 100 000km in the six-month test period, and saved 10.6% in fuel compared to the rest of the fleet running the same route, with the same weather conditions and the same payload. The total wind-drag reduction from the Green Trailer conversion also exceeded expectations, at up to 43%. The other major benefit from the significant reduction in fuel use is, of course, lower carbon emission. The 10.6% fuel saving amounted to a massive reduction of 13.77 tons of CO₂ emissions during the test period.

Our Handling division also has a number of initiatives in place, including:

•	The CO₂ profile of the UK fleet has decreased by 11% from 2010
•	In the UK, the introduction of a new company car policy to lease cars with low CO₂ emissions and reduce the number of journeys.
•	In the UK, installing GPS in vans to reduce technician travel time by dispatching the individual closest to the customer, and monitoring speeding. Speed limiters were also fitted to vans.
•	In the USA, the division switched to more efficient vehicles when replacing expired leases and new additions to fleet. These are smaller in body and length, 42% lighter by weight, and generate better mileage than the previous vehicles used.
•	In South Africa, employees are encouraged to choose company vehicles that are fuel efficient and have lower carbon emissions.

EN 19 Emissions of ozone-depleting substances by weight.

Integrated annual report 2011 - Limiting our environmental footprint

Given the nature of our operations and the sources of emissions, there are no significant ozone depleting substances as emissions sources in Barloworld’s operations.
EN 20 NOx, SOx, and other significant air emissions by type and weight

Integrated annual report 2011 - Limiting our environmental footprint

Barloworld has other non-Kyoto protocol GHG emissions sources, namely oxides of nitrogen (NOx) and oxides of sulphur (SOx), given the nature of its automotive operations. Measures to mitigate these non-greenhouse gas emissions rely on the consuming low-sulphur fuels and advanced engine technology for cleaner fuel combustion.
These mitigating measures are outside the control of Barloworld. These emissions are difficult to quantify given diverse operating conditions, technologies and regions in which the group operates and are not considered to be material.
EN 21 Total water discharge by quality and destination.

Integrated annual report 2011 - Limiting our environmental footprint

Because water is a scarce resource, we are committed to more efficient water consumption through reduced use, increased recycling and water-harvesting initiatives. Most water is sourced from municipal and local government supply systems and legally discharged into these systems after required filtration and separation processes. Washing of plant, equipment and vehicles constitutes the company’s major use of water.

As such, water is not removed from the area of extraction and, after required filtration and separation processes, effectively all water used (2011: 767 ML) is legally discharged into the municipal and local government systems from which it was extracted.
Consistent with identifying water consumption as a material aspect of its environmental stewardship approach, third-party assurance is obtained albeit only for billed water from municipal or local government.

EN 22 Total weight of waste by type and disposal method.

Integrated annual report 2011 - Limiting our environmental footprint

The group does not generate significant volumes of waste. Both hazardous and non-hazardous waste streams are monitored by type, volume, disposal method and destination. All used oil and other hazardous waste is disposed of through certified contractors.

Waste	2011	2010	2009
Non-hazardous
Paper (kg)	558 919	457 609	511 951
Tyres (kg)	860 954	768 490	615 420
Hazardous
Solvents (ℓ)	139 156	97 433	77 131
Lubricants (ℓ)	3 026 925	2 698 685	3 230 623
Oil filters ((kg)	241 507	114 492	71 380
Batteries (kg)	217 446	119 610	152 791
Computers (kg)	6 659	4 726	810

A change to reporting only by weight has affected current-year data. This change was anticipated in the previous report and implemented to ensure data consistency and clarity.

Equipment SA transported, without incident, 1 001 tons of hazardous (its waste oil and water, hydrocarbons, water mixtures, and emulsions). Logistics transported 9 234 tons of used pot linings without incident. Waste batteries, hazardous due to their lead content, were transported by certified contractors to legitimate recycling facilities. Smaller quantities of hazardous waste disposed of through contractors included used fluorescent lighting tubes.

No waste was imported or exported.

EN 23 Total number and volume of significant spills

Integrated annual report 2011 - Limiting our environmental footprint

There were no significant spills during the year.
EN 24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally

Integrated annual report 2011 - Limiting our environmental footprint

Equipment SA transported, without incident, 1001 tons of hazardous waste consisting of its waste oil and water, hydrocarbons, water mixtures, and emulsions. Logistics transported 9 324 tons of used pot linings without incident. Waste batteries, hazardous due to their lead content, were transported by certified waste disposal contractors to legitimate recycling facilities. Smaller quantities of hazardous waste disposed of through contractors included used fluorescent lighting tubes.

No waste was shipped internationally during the year.
EN 25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.

Integrated annual report 2011 - Limiting our environmental footprint

No water bodies were affected by runoff and discharges, hence no biodiversity was affected.

EN 26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation.

Apart from its logistics operations, Barloworld represents global original equipment manufacturers (OEMs). The group’s direct environmental impacts are therefore quite limited since it does not manufacture any of these products.

As a result, limiting the environmental impacts of its products and services is achieved primarily through technological and behavioural interventions designed to limit the use of natural resources by the company. In terms of the former, the group strives to provide customer solutions that incorporate the latest technological advances to use fuel optimally and emit fewer pollutants.

Its customers are advised on these advances, and encouraged to use equipment in a way that further reduces environmental impacts. The group maintains regular contact with its OEMs so that it is aware of the technological advances available and can, pass this information on to customers.

The Automotive division’s most significant products that are reclaimed are oil and lubricants. Generally, the ferrous material in motor vehicles can be recycled. However, this is not part of the vehicle leasing, motor retail or car rental operations. Tyres may also be recycled or used as fuel. Glass from broken or old windscreens can be recycled.

The only substantial product that is recycled is oil which, given its value, is not a material percentage or aspect of products sold (by value).

Specific initiatives include:

Equipment

Over the years, Caterpillar has invested heavily in technology that allows customers to get the most out of their machines improving performance, lowering costs and preventing machine downtime.

For example:

•	Caterpillar equips every Tier 4 interim/stage IIIB engine with ACERT™ technology with an ideal combination of electronic, fuel, air and after treatment components based on engine size, the type of application and the geographic location in which it will work.
•	Cat® MineStar™ System
	o	The New CAT® Minestar™ System is a comprehensive fleet management system for customers in the Mining sector that consists of scalable solutions that assist customers to manage their fleets’ productivity and efficiency. The system’s auto assignment model, using built in algorithms, can manage the truck and shovel system which ensures machines are used as efficiently and productively as possible.
	o	The Terrain capability set of “The New CAT® Minestar™ System” assist end-users, using GPS technology to guide machines, to do the job right the first time, thus maximising productivity and efficiency.
•	AccuGrade™ Grade Control System
	o	Machine control and guidance systems that use laser and GPS technology to ensure customers complete the required job in the shortest possible time, reducing the need for rework and making the surveyors job a lot easier.
•	Cat® Product Link
	o	Technology which allows the customer to monitor and manage his equipment remotely. Faults, service hours and position are sent via GPS or GSM links to a central server which is accessed by the customer using a Cat software package. This allows customers to plan servicing, diagnose problems, manage fuel consumption and even limit the working area of any particular machine.
•	The remanufacturing of products and rebuilding of components, preserves up to 85% of the energy expended during the original manufacturing process.

Automotive and Logistics

•	Leading principals for our motor retail operations continue to develop and introduce energy-efficient, low-emission vehicles, as well as hybrid and electric vehicles
•	Car rental fleets generally comprise vehicles under 12 months old with the latest technology, resulting in overall energy and emissions efficiency. Currently there are 42 Toyota Prius and 56 Honda Jazz hybrid vehicles in the South African car rental fleet.
•	Car rental provides eco-driving tips on hangers in every vehicle. Carbon emissions from rentals are recorded on every invoice. Monthly carbon emission reports are sent to corporate customers, making them aware of emissions resulting from their corporate rentals.
•	Emissions (CO₂e) from car rental operations have decreased by 8.25% from 94 453 tons in 2010 to 8661 tons in 2011. Intensity based on rental days has improved by 11.3%.
•	Clean vehicles are a core component of the customer offering but more efficient use of water has significant economic and environmental benefits while maintaining customer service levels. Avis Rent a Car in South Africa saves 75 million litres of water annually.
•	Logistics has introduced a range of innovative products and solutions which include:
	o	Logistics’ collaboration with the Council for Scientific and Industrial Research (CSIR) in South Africa and others in designing a more energy efficient and ergonomic vehicle that can carry a higher payload and be streamlined enough in its design to reduce fuel consumption and ultimately emissions. The rig travelled 100 000km in the six-month test period, and saved 10.6% in fuel compared to the rest of the fleet running the same route, with the same weather conditions and same payload. The total wind-drag reduction from the Green Trailer conversion also exceeded expectations, at up to 43%. The other major benefit from the significant reduction in fuel use is, of course, lower carbon emission. The 10.6% fuel saving amounted to a massive reduction of 13.77 tons of CO₂ emissions during the test period.
	o	Distribution network optimisation tool, CASTE-CO₂, calculates networks according to emissions and can be used as a tool to minimise carbon emissions in a supply chain.
	o	CINO is part of a suite of supply chain optimisation products that enables companies to make strategic inventory positioning decisions to optimise the entire supply chain. Effective and efficient supply chains have improved carbon footprints.

Handling

Recyclability is a prime consideration in Hyster lift truck design, as is waste which is reduced through extended service intervals and reduced tyre and component wear.

•	Hyster Reachstackers / Big Trucks – fuel savings of up to 15%, CO₂ reductions.
•	Empty container handlers – reduced tyre wear (up to threefold) and fuel savings.
•	2t to 5.5t diesel/LPG forklift trucks – fuel savings of up to 15% on the new Fortens range, making Hyster diesel and LPG trucks in this category some of the ‘greenest’ on the market.

UK Handling’s service support fleet of 450 vehicle uses global positioning (GPS) technology and with changes in fleet mix and other technology has reduced fuel consumption by 18%.

Across the group

EN 27 Percentage of products sold and their packaging materials that are reclaimed by category.

Integrated annual report 2011 - Limiting our environmental footprint

Barloworld is mindful of the lifecycle implications of its products and solutions and appreciates the responsibility it has in this regard. It focuses on ensuring maximum and efficient use of the products it sells and leases, including extending their operating lifetime. In this regard, a relatively high percentage of Caterpillar and Hyster components are rebuilt, prolonging their life and thereby reducing waste.

Hyster’s truck remanufacturing process recovers some 50% of original components whilst their rebuilt engines are 50% to 67% more efficient in terms of energy and labour respectively. Approximately 90% of a scrapped lift truck can be reclaimed. Some 70% of Caterpillar components are rebuilt.

Ultimately, many components of vehicles, plant and equipment are reclaimed such as glass, tyres and metal.
EN 28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Integrated annual report 2011 - Limiting our environmental footprint

There were no significant fines or non-monetary sanctions for non-compliance with environmental laws and regulations during the year.
EN 29 Significant environmental impacts of transporting products and other goods and materials used for the organisation's operations, and transporting members of the workforce.

The primary environmental impact of Barloworld’s transportation is emitting pollutants into the atmosphere. These comprise mainly GHG emissions, but also a small proportion of other pollutants. Regular maintenance of fleets is part of limiting these emissions. In addition, the use of latest technology also reduces these.

EN 30 Total environmental protection expenditures and investments by type.

Investments in limiting the impact the effect of our activities on the environment are mostly integrated into ongoing operations and incorporated into design, development and construction activities, such as those for new buildings, renovations and upgrades, water-recycling plants and energy-efficiency initiatives.

We also invest in new products such as the logistics division’s green trailer project, relevant software development, and a carbon offset programme. Payments include those made to certified waste disposal contractors. As these are integrated into operational expenditure, they are not always readily identifiable and quantifiable.

In the Automotive division, expenditure is incorporated into all development and construction activities to comply with environmental legislation, internal standards and good practice. In addition, there is on-going expenditure on maintaining standards and complying with existing ISO ratings (infrastructure and systems) as well as principals’ quality and environmental standards. Building three new dealerships incorporates such expenditure.

Avis Rent a Car South Africa offset its own carbon emissions (11000t pa) by purchasing carbon credits in three voluntary carbon standard (VCS) projects, namely: Hufu waste heat recovery project in China; Govinderpuram wind power project in India; and Unchindle-Mapanda reforestation project in Tanzania; at a total cost of £65 408 per annum.

The clean-up cost for historical soil contamination at Avis Rent a Car South Africa was R2.45 million.

The corporate office spent R81 600 on disposing of recycled waste and its energy-efficiency initiatives amounted to R1.014 million for the year.

Handling’s environmental expenditure for the year is as follows:

•	UK - £200 000 for all environmental and waste costs, including landfill, destruction certificates for old computer equipment
•	US - $192 000 fees paid to a waste consolidator to help reduce waste, recycle more wastes, ensure compliance with waste handling regulations, lower our waste-handling costs and keep all necessary documentation
•	US - $119 000 for a range of projects including the upgrade to oil/water separators and energy efficient lighting
•	Belgium – capital expenditure of €20 000 for heating installation and thermo valves
•	Netherlands – annual operational costs for waste management of some €60 000.