Energy: 302-1 to 302-5

  • Management Approach

    We also strive to provide our customers with solutions that assist them to achieve their sustainable development, including energy and climate change, objectives. While no specific targets are set in this regard as customers’ requirements vary, this however forms part of our mitigation and adaptation approach in transitioning to lower carbon economies.

    Barloworld is committed to responsible energy consumption with group aspirational 2020 targets set. While progress against targets may not be linear over the target period, it is monitored and reported annually as part of the group’s integrated reporting.

    Such a target benefits group by mitigating rapidly rising costs, particularly electricity in South Africa, (including related ‘pass-through’ costs), organisational resilience and the associated need to reduce greenhouse gas emissions. These are entrenched in the group’s strategic planning processes and operations. The group focuses on improving the efficiency of non-renewable energy consumption, mainly in the form of electricity and fuel for vehicles. In terms of the former, the group’s divisions and their operations have a range of initiatives to reduce consumption spanning timers on light switchers to more energy efficient building designs– in short, any measure that will reduce consumption and cost.

    Some divisions are now considering alternate energy sources, having sufficiently reduced their non-renewable energy consumption. In addition to the 300 kW (peak) solar photovoltaic installation implemented at Equipment's Isando operations in FY16, a further 400kWp installation was completed during the current period; one at our Boksburg Power facility (200kWp) and one at our BRC facility (200kWp). These installations have contributed to the generation of some 950 MWh of renewable energy during the period and translated into an avoidance of some 980 tCO2e resulting from grid-electricity and monetary savings in excess of R1m for the financial period. The installations are sufficient to cater for the campus’ baseloads. Similar installations are anticipated for selected facilities in the future. Switching to renewable energy reduces reliance and pressure on the electricity grid and improves operational resilience. In terms of fuel consumption, vehicles are recent models with the latest engines designed to use less fuel and emit less pollutants. At an operational level, the efficiency of related fleets are monitored against the most appropriate consumption drivers and indicators.

    Regular maintenance ensures that engines run optimally and consume less fuel. The group also sources products from its OEMs with the latest fuel saving technologies.

    Divisions utilise the skills and resources within their respective operations to assist in identifying and maximising efficiency opportunities internally within the group.

    The above are examples of our adaptation and mitigation strategies aimed at transitioning to lower carbon economies.

  • 302-1: Energy consumption within the organization

    The reporting organization shall report the following information:
    a. Total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used.
    b. Total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used.
    c. In joules, watt-hours or multiples, the total:
    i. electricity consumption
    ii. heating consumption
    iii. cooling consumption
    iv. steam consumption
    d. In joules, watt-hours or multiples, the total:
    i. electricity sold
    ii. heating sold
    iii. cooling sold
    iv. steam sold
    e. Total energy consumption within the organization, in joules or multiples.
    f. Standards, methodologies, assumptions, and/or calculation tools used.
    g. Source of the conversion factors used.
    Integrated Report:

    Consumption of energy derived from non-renewable resources such as coal, petrol, and diesel 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 in order to reduce consumption across the board against a business-as-usual scenario.

    Consumption by primary energy source is reflected in the table below:

    Consumption by energy source 2018 2017 2016
    Direct Energy      
    Diesel (KL) 64 250 66 463  64 308
    Petrol (KL) 7 061 8 246 9 101
    Heavy Oil (KL) 0 0 1
    LPG (Tonnes) 16 13 21
    CNG/LNG (000 M3) 10 8 24
    Indirect Energy Sources      
    Grid electricity (MWh)  73 312  77 630  78 067

    The table above reflects a 3% decrease in diesel consumption and a 14% decrease in petrol consumption over prior year. Consumption of LPG, CNG increased by 23% and 25% respectively and grid electricity decreased by 6% over prior year.

    Group non-renewable energy consumption was 5% lower over 2017 as per table below:

    Non-renewable energy^ (GJ) by Division (Direct and Indirect) 2018 2017 2016
    Equipment and Handling 253 841 315 978  400 926
       Equipment  253 236  301 809  364 569
       Handling  605  14 169  36 357
    Automotive and Logistics  2 691 120  2 769 164  2 633 760
       Automotive  421 293  469 130  488 542
       Logistics  2 269 827  2 300 034  2 145 218
    Corporate  2 735  2 127  2 348
    Barloworld Group 2 947 696 3 087 269  3 037 034

    ^ Excludes energy from rental fleets

    Given the nature of our operations, diesel remained the major source of energy consumption, accounting for some 82% of group energy consumption.

    Non-renewable energy^ (GJ) by Energy Source 2018 2017  2016
    Direct Energy      
    Diesel 2 442 451  2 526 268   2 444 253
    Petrol 240 216  280 673  309 859
    Other* 1 108  864  1 882
    Indirect Energy Sources      
    Grid electricity 263 921  279 464  281 040
    Barloworld Group 2 947 696  3 087 269 3 037 034

    ^ Excludes energy from rental fleets

    * Heavy oil, LPG and CNG

    Energy (GJ) is calculated by multiplying the consumption volume by the relevant energy conversion factor based on fuel type and region. See: Barloworld Energy and Emission conversion factors including respective source is available on our website.

    In addition to the 300 kW (peak) solar photovoltaic installation implemented at Equipment's Isando operations in FY16, additional capacity of 400kWp installed during the current period; one at our Boksburg Power facility (200kWp) and one at our BRC facility (200kWp). These installations have contributed to the generation of some 950 MWh (3 421 GJ) of renewable energy during the period and translated into an avoidance of 980 tCO2e resulting from grid-electricity and a monetary savings in excess of R1m for the financial period. Similar installations are anticipated for selected facilities in the future. Switching to renewable energy reduces reliance and pressure on the electricity grid and improves operational resilience. The current consumption of renewable energy accounts for 1.3% (2017: 0.68%) of total indirect energy consumption (energy (GJ) sourced from grid electricity plus renewable electricity). Group aspirational 2020 targets are set for renewable energy consumption, and while progress against these are not linear, these are monitored and reported in the group’s integrated reporting.

    Non-Renewable Energy (GJ) by region^ 2018 2017 2016
    South Africa 2 795 320 2 924 546 2 868 187
    Rest of Africa and Middle East 106 159 119 844 125 127
    Russia 46 217 42 879 43 720
    Barloworld Group 2 947 696 3 087 269 3 037 034

    ^ Excludes energy from rental fleets

    There is no energy generated for sale within the group.

  • 302-2: Energy consumption outside of the organization

    The reporting organization shall report the following information:
    a. Energy consumption outside of the organization, in joules or multiples.
    b. Standards, methodologies, assumptions, and/or calculation tools used.
    c. Source of the conversion factors used.
    Integrated Report:

    While the group does not report the energy consumed outside the organization, it does report certain scope 3 emissions which are related to such energy consumption.

    The group is currently gathering this information, we remain mindful of the impact this has on the communities in which we operate. We are currently refining these reporting processes and we will consider reporting this externally in due course. Nonetheless, we appreciate the impact our operations have on the external environment, and in this regard we currently report scope 3 emissions relating to our South African Car rental (Avis Budget) fleet (109 540 tCO2e) and our business air travel (5 732 tCO2e).

    Emissions from our car rental operations are calculated based on distance travelled and the respective vehicle OEM emission factors per model. The emissions from our South African car rental fleet has been included in the external limited assurance scope conducted by Deloitte for the period.

    Business air travel is calculated based on average distance per long, medium and short flight multiplied by the respective conversion factor.

  • 302-3: Energy intensity

    The reporting organization shall report the following information:
    a. Energy intensity ratio for the organization.
    b. Organization-specific metric (the denominator) chosen to calculate the ratio.
    c. Types of energy included in the intensity ratio; whether fuel, electricity, heating, cooling, steam, or all.
    d. Whether the ratio uses energy consumption within the organization, outside of it, or both.
    Integrated Report:

    It may not always be possible or practical to reduce absolute energy consumption year-on-year given the correlation between business activity and energy consumption.

    To mitigate this, Barloworld measures energy consumption against activity levels (using revenue as a proxy for activity), resulting in an intensity indicator.

    Despite the adoption of an intensity metric for energy, operations within the group have varying energy intensity levels dependent on the nature of their respective activities. The table below is a function of non-renewable energy consumption (GJ) and activity (using R million revenue as a proxy).

    The decreased intensity in 2018 against 2017 indicates less energy was consumed in generating R1 million revenue than in 2017.

    Non-renewable energy Intensity by Division  (GJ per R1 million revenue) 2018 2017 2016
    Equipment and Handling 9.2 13.1 16.1
       Equipment 9.2 12.9  15.6
       Handling 5.3 18.5 24.2
    Automotive and Logistics 75.3 73.3 70.8
       Automotive  14.1  14.8 15.5
       Logistics 383.1 372.8  372.7
    Barloworld Group 46.5 49.8 48.9

    Non-renewable energy included in the above intensity table includes direct and indirect energy which includes fuel (petrol, diesel, LPG, CNG and Heavy oil) and grid electricity consumed within the organisation.

    Barloworld Energy and Emission conversion factors including respective source is available on the Barloworld website.

  • 302-4: Reduction of energy consumption

    The reporting organization shall report the following information:
    a. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.
    b. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.
    c. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.
    d. Standards, methodologies, assumptions, and/or calculation tools used.
    Integrated Report:

    The group's principal source of indirect non-renewable energy is electricity sourced from the grid, which accounts for some 9% of energy consumption and 28% of tCO2e emissions in 2018.

    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 and the South African National Business Initiative's (NBI) Energy Efficiency Leadership Network's (EELN) Energy Efficiency Pledge.

    Energy conservation and efficiency initiatives are driven by the group's aspirational target of a 10% efficiency improvement in our non-renewable energy consumption by the end of our 2020 financial year, off a 2015 baseline and against a business-as-usual scenario.

    Initiatives in place to conserve energy and contribute to such savings include:

    • Entrenching sustainable development in group strategy.
    • Setting targets and entrenching integrated reporting that includes efficient energy consumption.
    • Focused communication programmes which include the principle that the cumulative impact of small changes become significant.
    • Inclusion of 'Sustainability' to its core Values, which recognises that it is central to our value creation approach and emphasises the individual responsibility of all in Barloworld for this aspect. Included under Sustainability is 'We focus on environmental responsibility and preventing waste'.
    • Membership of the Green Building Council of South Africa, through our Automotive division, has re-enforced our ' green' buildings initiative for new buildings which have resulted in:
      • 'Green' buildings initiative for existing buildings that includes
      • Conducting energy audits
      • Installing more efficient lighting, heating, cooling and ventilation systems
      • Installing motion sensors on lights and air conditioning systems
      • Timing switches on compressors and other appropriate electrical equipment
      • Use of geyser blankets and reduction of geyser temperatures
      • Resetting wash bay blowers in car rental operations to optimise time taken to dry vehicles
    • New Automotive dealerships and Logistics warehousing include energy efficiency technology, adopting various Energy Management Systems and ISO certifications in certain operations which include procurement management, measurement, account verification initiatives, load management, energy efficiency initiatives, alternate energy projects, monitoring, rebates, reporting and communication and training.
    • Reduced air travel and increased use of video conferencing.
    • Reduce business travel and introduce lower engine capacities.
    • Within the Automotive's Motor Retail operations, initiatives implemented at 9 sites are anticipated to produce an estimated cumulative saving of some 1 000 MWh of grid electricity (scope 2) per annum, resulting in a reductions of some 2 200 GJ and 1 000 tCO2e.
    • In 2013, Automotive's Toyota Witbank dealership in South Africa conducted an energy efficiency revamp which included:
      • Installation of single-clear glazing with a low-emissivity coating which has a U-value of 3.8W/m2C and a shading co-efficient of 0.69, reducing the thermal load without affecting the visibility of the cars on display from the outside.
      • More energy efficient air-conditioning systems were fitted to further reduce energy consumption. A split inverter DX unit provides the individual working spaces within the building with individual control over their air temperature, but makes use of inverter compressor technology which reduces energy consumption by up to 20%. The initiatives above are anticipated to produce approximate energy savings of 489 439 kWh (approximate saving of 1 762 GJ and 504 tCO2e) of grid electricity per annum.
    • Also in Automotive:
      • All new vehicles sold incorporate the vehicle manufacturers' latest environmental technology developments and improvements.
      • Some company vehicles are monitored through the Intelligent Fuel product to ensure any inefficiencies resulting in excessive fuel usage are identified and addressed.
      • Car rental fleets generally include vehicles less than 12 months old and hence have the most up to date and efficient propulsion systems and technology.
      • Occupancy sensors implemented at one warehouse has contributed to year-on-year savings of some 150 MWh (approximate saving of 540 GJ and 155 tCO2e) in FY18.
      • Other initiatives at five other sites included energy efficient lighting, LED retrofits and controlled usage have resulted in year-on-year energy savings of some 426 000 KWh (approximately 1 500 GJ and 440 tCO2e).
      • 77 Smart trucks have been deployed across three provinces that are capable of transporting sugar, timber and platinum. During the year, these vehicles have transported the same payload while doing some 8 844 less trips within the period. This saving equates to an estimated reduction of 2 150 098 kms and a saving of some 1.2 ML of diesel and 3 196 tons of emissions (approximately 45 744 GJ). This initiative has cumulatively, from September 2012 to September 2018, allowed Barloworld Transport to reduce the number of trips by 21 300, resulting in an estimated saving of 3.2 ML of diesel and a reduction of approximately 8 900 tons of emissions (approximately 121 900GJ).
      • Our smart truck fleet generates on average 31% less road damage per ton of payload transported and have seen fuel savings as high as 25% per ton of payload transported.
      • Since 2009, five Green Trailers which are superlink tautliner trailer combinations that significantly reduces the amount of fuel it uses through aerodynamic innovation have been included in the fleet. A research exercise conducted on the N3 between Johannesburg and Durban showed that when the Green Trailer travelled at a constant speed of between 70 and 80 km/h almost 11% of fuel was saved. This translates into a reduction of 66.8 tCO2e over a ten-month period (extrapolated annualised savings estimated at 80.1 tCO2e).
      • Efficient planning and routing – an efficient transport management service can cut transportation costs by 10% to 20% by transforming and optimising the entire distribution network. In line with this and central to our operations is our enterprise software platform MAX, a real-time internet-based operating platform that fuels the management of information in our business and provides transparent information flow which is fully integrated with vehicle tracking and ERP for real time order placement, delivery requirement analysis, optimal fleet allocation and vehicle routing.
    • In addition to the 300 kW (peak) solar photovoltaic installation implemented at Equipment's Isando operations in FY16, a further 400kWp capacity was installed during the current period; one at our Boksburg Power facility (200kWp) and one at our BRC facility (200kWp). These installations have contributed to the generation of some 950 MWh of renewable energy during the period and translated into an avoidance of 980 tCO2e resulting from grid-electricity and a monetary savings in excess of some R1m for the financial period. Similar installations are anticipated for selected facilities in the future. Switching to renewable energy reduces reliance and pressure on the electricity grid and improves operational resilience.
    • In 2014, comprehensive energy audits were conducted at our South African sites as part of the Private Sector Energy Efficiency (PSEE) programme, rolled out by the National Business Initiative (NBI). Identified energy efficiency opportunities identified at the sample of locations were replicated across other sites. Relevant identified opportunities were factored into the strategic planning process when setting energy and emissions efficiency targets in FY15.
    • Property developments currently in the planning phases are adopting Green Building principles and initiatives being investigated are in line with level 4 and 5 Greenstar rating.

    The table below reflects our grid electricity consumption in absolute terms:

    Grid Electricity (MWh) 2018 2017 2016
    Equipment and Handling  18 571  19 828  22 647
       Equipment 18 544 19 615  22 026
       Handling  27  213  621
    Automotive and Logistics  54 121  57 249  54 921
       Automotive  34 564  37 296  38 986
       Logistics  19 557  19 953  15 935
    Corporate  620  553  499
    Barloworld Group  73 312  77 630  78 067

    The above tables indicate that absolute grid electricity consumption is down 6% over prior year and the table below indicates grid electricity intensity is down 7% over the same period.

    Electricity intensities can be calculated using grid electricity consumption and revenue:

    Grid electricity Intensity (MWh per R1 million revenue) 2018 2017 2016
    Barloworld Group  1.16 1.25 1.26

    The table below reflects energy consumption by source:

    Non-renewable energy^ (GJ) by Energy Source 2018 2017 2016
    Direct Energy Sources      
    Diesel 2 442 451 2 526 268   2 444 253
    Petrol 240 216 280 673  309 859
    Other* 1 108   864  1 882
    Indirect Energy Sources      
    Grid electricity 263 921  279 464  281 040
    Barloworld Group  2 947 696  3 087 269 3 037 034

    ^ Excludes energy from rental fleets

    * Heavy oil, LPG and CNG

  • 302-5: Reductions in energy requirements of products and services

    The reporting organization shall report the following information:
    a. Reductions in energy requirements of sold products and services achieved during the reporting period, in joules or multiples.
    b. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.
    c. Standards, methodologies, assumptions, and/or calculation tools used.
    Integrated Report:

    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 of these advances, and encouraged to use equipment in a way that further reduces their impact. The group maintains regular contact with its OEMs so that it is appraised 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 business model. 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 of products sold (by value).

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

    Specific initiatives include:

    Equipment

    Caterpillar has a significant R&D program whereby they continually strive to improve energy efficiency in their products and continue to reduce emissions from their clean diesel engines while maintaining fuel efficiency. Caterpillar are also building on their experience with bio-diesel and the next generation of bio-fuels to reduce GHG emissions and fossil-fuel consumption. During the current period, Caterpillar also launched the CAT 320 NEXT GENERATION EXCAVATORS which reduces fuel consumption by up to 25%, maintenance costs by up to 15%, oil filter waste and improves operator efficiency by up to 45%.

    (Source: https://www.cat.com/en_ZA/news/machine-press-releases/three-next-generation-cat-excavators-deliver-more-choices-for-increased-efficiency-and-lower-operating-costs-in-20-ton-size-class.html).

    Automotive

    • Leading principals in our motor retail operations continue to develop and introduce energy-efficient, low-emission vehicles.
    • Car rental fleets generally include vehicles less than 12 months old fitted with the latest technology, resulting in overall energy and emissions efficiency.
    • 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

    Barloworld Logistics offers a range of supply-chain optimisation products, including energy-efficient transport solutions that reduce carbon footprints. These assist clients reduce their carbon emissions through our operational excellence (OE) projects, reducing electricity, water and waste in most of our facilities. We have a supplier management programme called ‘Greenworld’ which measures and monitors our suppliers’ carbon footprints in line with industry best practice.
    Examples of such products and services that assist customers in achieving their sustainability objectives and driving efficiency include:

    • 77 Smart trucks have been deployed across three provinces that are capable of transporting sugar, timber and platinum. During the year, these vehicles have transported the same payload while doing some 8 844 less trips within the period. This saving equates to an estimated reduction of 2 150 098 kms and a saving of some 1.2 ML of diesel and 3 196 tons of emissions (approximately 45 744 GJ). This initiative has cumulatively, from September 2012 to September 2018, allowed Barloworld Transport to reduce the number of trips by 21 300 trips, resulting in an estimated saving of some 3.2 ML of diesel and a reduction of approximately 8 900 tons of emissions (approximately 121 900GJ).
    • Our smart truck fleet generates on average 31% less road damage per ton of payload transported and have seen fuel savings as high as 25% per ton of payload transported.
    • Since 2009, five Green Trailers which are superlink tautliner trailer combinations that significantly reduces the amount of fuel it uses through aerodynamic innovation have been included in the fleet. A research exercise conducted on the N3 between Johannesburg and Durban showed that when the Green Trailer travelled at a constant speed of between 70 and 80 km/h almost 11% of fuel was saved. This translates into a reduction of 66.8 tCO2e over a ten-month period (extrapolated annualised savings estimated at 80.1 tCO2e).

    General

    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 components are rebuilt, prolonging their life and reducing waste. In 2018, some 79% of total component sales in Equipment southern Africa related to remanufactured and rebuilt components, of which 51% related to Barloworld Equipment remanufactured parts and 49% related to Caterpillar remanufactured parts. Similarly in Equipment Russia, some 9% of total component sales related to remanufactured and rebuilt components, of which 56% related to Barloworld Equipment remanufactured parts and 44% related to Caterpillar remanufactured parts.

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

    For more information, please refer to the following links: