Environmental stewardship

Our approach

Our approach to environmental stewardship is reflected in our group policies, including the climate change, energy efficiency, environmental, water use and management and waste management policies. The material aspects of our environmental impact and critical areas of monitoring and management include:

Energy consumption   Greenhouse gas (GHG) emissions
Water use   Waste management
Underscoring our commitment to environmental stewardship

Barloworld's Worldwide Code of Conduct and Code of Ethics support the group's commitment to the environment and sustainable development.
These inform employees' individual and collective behaviour: 'Sustainability' is one of the group's five core values, and 'Protect the Environment' is one of the five aspects of our Code of Ethics.

Governance and oversight

The group and divisional risk and sustainability sub-committees oversee our aspirations, performance and governance processes. Material Safety, Health and Environmental (SHE) related disclosures are also tabled at the group audit committee biannually, and similar governance processes are undertaken at divisional level by various oversight committees. Reporting and control processes are in place and reviewed periodically throughout the year by internal audit and external assurance is conducted on selected sustainability disclosures.

2018 recognition
Certificate of Membership   JSE
  Dow Jones
  External certifications and accreditations coverage 2018
  Barloworld Worldwide Code of Conduct and Code of Ethics
  Barloworld 2018 CDP climate change and CDP water disclosure responses
  Barloworld environmental, energy efficiency, climate change, waste management, water use and management policies

102-10, 301 to 308

Our aspirational group 2020 targets

In order to drive our commitments, aspirational five-year targets were set in 2016 for each identified material aspect. These targets assist in prioritising internal resources towards initiatives that contribute to responsible environmental stewardship and are off a 2015 baseline. While progress against targets may not be linear over the target period, reporting systems are in place that enable the collection and reporting of credible data, allowing for effective monitoring, management and oversight.

Material aspect
 
Aspirational group 2020 target
Energy consumption
 

We aim to:

Improve our non-renewable energy efficiency by 10%, off a 2015 baseline (48.2), to 43.4
   

Measure:

Non-renewable energy intensity (GJ/R1m revenue)
   

We aim to have:

2 000 MWh or more renewable energy consumption per annum
   

Measure:

Renewable energy consumption (MWh)
GHG emissions
 

We aim to:

Improve our greenhouse gas emissions (scope 1 and 2) efficiency by 10%, off a 2015 baseline (4.3), to 3.9
   

Measure:

GHG emissions (scope 1 and 2) intensity (tCO2e/R1m revenue)
Water use
 

We aim to:

Improve our water withdrawal (municipal sources) efficiency by 10%, off a 2015 baseline (12.0), to 10.8
   

Measure:

Water withdrawal (municipal sources) intensity (KL/R1m revenue)
Waste management
 

We aim to have:

100% of our waste disposed of through formal waste management service providers
   

Measure:

Percentage of waste disposed of through formal waste management service providers (%)

2018 performance and progress against targets
PROGRESS AGAINST ASPIRATIONAL GROUP 2020 TARGETS
2020 Group Target

While the aspirational group targets are set to the end of our 2020 financial period, we currently monitor and manage our progress.

The above diagram details progress against the set group targets, which cover each of the identified material sustainability aspects.

2020 Target   2020 Target
2018 Actual   2018 Actual
2017 Actual   2017 Actual
2016 Actual   2016 Actual
Renewable and non-renewable energy

To reduce our footprint and manage our energy use we follow a measure, avoid, reduce, switch and offset (MARSO) approach, which addresses our responsible citizenship programme, increasing energy cost and supply challenges. Our operations have generally progressed to the 'reduce' and the 'switch' phases, with a concerted drive to reduce non-renewable energy consumption and a linked effort to switch to renewable energy sources. This year, we continued our implementation of solar photovoltaic (PV) solutions, with these solutions generating approximately 950 MWh of renewable energy. Further installations are anticipated in the group and PV also forms part of our product offerings.

Our non-renewable energy intensity improved over the prior year, and we are making steady progress towards our 2020 aspirational target. Having optimised their energy efficiency, Equipment Isando and Boksburg Power facilities have incorporated renewable energy into their energy mix, and similar installations are planned for identified operations. Such installations reduce demand for fossil fuel energy and positively contribute to Barloworld reducing its non-renewable energy and emissions footprint. Implemented energy efficiency initiatives contributed to the 5% decrease in non-renewable energy consumption during 2018.

Renewable energy (MWh)   Non-renewable energy* (GJ)
Renewable energy   Non-renewable energy
* Excludes energy from rental fleets.

Greenhouse gas emissions (Scope 1 and 2) (tCO2e)

Greenhouse gas emissions


Greenhouse gas emissions

We strive to reduce our greenhouse gas (GHG) emissions which primarily result from the combustion of non-renewable liquid fuels, such as diesel and petrol, and also indirectly through the purchase of grid electricity.

Since our GHG emissions are linked to non-renewable energy consumption, emissions (scope 1 and 2) decreased by 5% aligned to the decrease in such consumption during 2018. Our emissions (scope 1 and 2) intensity improved over the prior year, and we are making steady progress towards our 2020 aspirational target.

We report certain scope 3 emissions. These cover emissions from our Avis Budget South African rental fleet and business air travel, both of which decreased during the year.

Greenhouse gas emissions (Scope 3) (tCO2e)

Greenhouse gas emissions


Water

Although we are a limited consumer of water, we recognise global concern over water scarcity. While we have achieved our aspirational group 2020 target, we continue to explore initiatives, such as water recycling and rainwater harvesting to further improve efficiencies. We withdraw the majority of our water from municipal sources. Water withdrawals from municipal sources decreased by 13% during 2018. Overall, 25.3% (2017: 24.8%) of water withdrawn was recycled.

Water withdrawals (ML^)   Water recycling* (%)
Water withdrawals   Water recycling
^ Municipal sources.   * Water recycled as a percentage of water withdrawn from municipal sources.
Waste management

Due to the nature of our business, we do not generate significant volumes of waste. Paper, tyres and oil filters constitute the majority of our solid waste, while our liquid waste primarily comprises lubricants. Our aspirational group 2020 target is to have 100% of our waste disposed of through formal waste management service providers. Currently, the majority of our waste is disposed of through formal contractors.

Our waste management systems currently monitor waste type, volume, disposal method and destination. We aim to continuously evolve and improve these systems.

Waste disposed of through formal waste management service providers (%)

Waste disposed of through formal waste management service providers

Looking forward

We will continue our initiatives to improve efficiencies in non-renewable energy consumption, greenhouse gas emissions and water withdrawals; and progress renewable energy installations and responsible waste management. Progress against our aspirational group 2020 targets will be reported to our stakeholders. Synergies and opportunities presented by our rebuild and remanufacture operations, and our solar PV offering will be leveraged and incorporated into our customer solutions where appropriate.