Local Communities: 413-1 to 413-2

  • Management Approach

    Barloworld operations are predominantly in urban centres across the world. Their direct influence on local communities is relatively limited.

    The group employs local people but, given the size of its operations, it cannot be regarded as the primary employer in any region. At its operations, the group interacts with local stakeholders as appropriate. Given the nature of its operations these usually do not relate to any material negative impacts of its operations.

    The group contributes to the socio-economic development of its regions directly through employment, paying local taxes and levies, through its skills development, corporate social investment, supplier diversity and enterprise development programmes.

    In terms of alignment of plans and measuring the impact of development initiatives, the group is committed to spending at least 1% of Net Profit After Tax (NPAT) globally on corporate social investment. Of South African profits, a regulated 1% is spent on socio-economic development and 3% on enterprise development initiatives, and 6% of payroll cost is levied for SETA’s for skills development: education, training and learnerships for previously disadvantaged individuals.

    The central and divisional CSI, Supplier Development and Enterprise Development programmes align with elements of South Africa-specific Sustainable Development Goals, the country’s National Development Plan, empowerment and transformation objectives, government’s regional and local integrated development plans and major customers’ social and labour plans, the objectives being increasingly included in tenders. The central CSI programme tracks the achievement of its non-governmental organisation development partners against KPIs linked to shared strategic objectives.

  • 413-1: Operations with local community engagement, impact assessments, and development programs

    The reporting organization shall report the following information:
    a. Percentage of operations with implemented local community engagement, impact assessments, and/or development programs, including the use of:
    i. social impact assessments, including gender impact assessments, based on participatory processes;
    ii. environmental impact assessments and ongoing monitoring;
    iii. public disclosure of results of environmental and social impact assessments;
    iv. local community development programs based on local communities' needs;
    v. stakeholder engagement plans based on stakeholder mapping;
    vi. broad based local community consultation committees and processes that include vulnerable groups;
    vii. works councils, occupational health and safety committees and other worker representation bodies to deal with impacts;
    viii. formal local community grievance processes.
    Integrated Report:

    Local engagement and support is the responsibility of each operation. However, structural social investment, supplier diversity and enterprise development programmes are co-ordinated at group level.

    All operations engage their local communities appropriately. Given the nature of the group's operations and urban locations, no single operation has a significant impact on local communities hence there is no requirement for business-related social or environmental impact assessments.

    In terms of the group's shared value approach, communities in which business units operate are our stakeholders and, as such, we are mindful of the value we create for those communities.

    Aspects of this value-creation include providing employment, paying rates and taxes, raising the profile of the community issues in need of redress and direct assistance through financial and other contributions.

    Principally, engagement is through local councils but, in many instances, community structures are engaged and employees are encouraged to participate in the work of local charities, schools and similar institutions/structures.

    Barloworld is committed to responsible corporate citizenship, including being responsive to the social welfare, socio-economic and enterprise development needs of the communities in which it does business, careful custodianship of the environment and efforts to address climate change. The group approaches these objectives from a moral and commercial perspective, founded on sound business acumen and optimal levels of sustainable returns.

    In the course of its business, through extensive interactions, Barloworld engages with a wide range of stakeholders to understand their interests and concerns and to construct its value propositions based in large part on stakeholder input. The group seeks to provide leadership in society by encouraging its leaders to contribute to development challenges, to act as role models, and by helping to create the responsible leaders of the future.

    Efforts are made to understand social and socio-economic development needs and objectives and financial and in-kind contributions are made to appropriate initiatives centrally through the Barloworld Trust in South Africa, as well as through business units' direct CSI initiatives, based on a percentage of profits. In addition, individuals are encouraged to contribute time, skills and resources to local communities.

    Through the social investment initiatives of the Barloworld Trust, Barloworld has over many years sought strategic partnerships, synergies and innovations in public-service delivery that can be taken to scale by the public sector or the market.

    Through grants, networking, referrals and insistence on sound management practices, responsible governance and accountability, Barloworld endeavours to build capacity and sustainability in its development partners, where necessary. The group has invested R84 million in such initiatives over the past five years, of which 86% was accredited socio-economic development (SED) spend in terms of the South African B-BBEE codes.

    The Barloworld Trust is mainly focused on improving learner outcomes and facilitating access to education in South Africa. Through the Barloworld Trust, we invest millions in carefully selected interventions which address some of the foremost problems in South Africa society in a structured, systematic manner. This approach is underpinned by our strategic partnerships in civil society which deliver synergies and innovations in public-service delivery that can be developed to scale by the public sector or the market.

    Some of the Barloworld Trust's strategic investments include: 

    1. For Systemic Change in Education

    Bridge convenes / facilitates / manages the work of communities of practice to focus on key leverage points in the education system to create common purpose, peer support and trust amongst stakeholders, maximise resources, contribute to change at a systemic level and vertically link practices to policy creation and implementation.

    For more information, see www.bridge.org.za

    LEAP Science and Maths Schools include six intervention high schools focused on excellence in mathematics, science, English and emotional growth, a teacher training programme, and after-hours tuition. The LEAP movement also works with a range of partners to effect broader systemic change in education in South Africa.

    For more information, see www.leapschool.org.za

    TEACH South Africa recruits, trains and supports top university graduates to teach mathematics, science, English or technology for a minimum of two years in some of South Africa's most under-resourced schools. TEACH's primary objective is to use these TEACH Ambassadors to improve learner achievement in an effort to afford quality education to every South African learner.

    For more information, see www.teachsouthafrica.org

    Thandulwazi Trust - Maths and Science Academy. St Stithians outreach to improve the quality of maths and science teaching and learning in Gauteng Schools by offering learners at the FET Phase extra tuition in these key subjects at a Saturday School, to up-skill and offer a professional development programme to teachers in government schools across Gauteng, and train new maths, sciences, English and ECD/Foundation Phase teachers through a mentored, in-service training programme.

    For more information, see www.thandulwazi.com

    2. To support whole school development

    Penreach, a whole school development programme operating from Penryn College in Mpumalanga, provides educational interventions and solutions in a pipeline from early childhood development to career, working with over 900 historically disadvantaged schools in programmes which address in-service skills training and support to mathematics and science teachers, pre-school, primary and high school teachers, principals, school governing bodies and their community structures.

    For more information, see www.penreach.org.za 

    3. To facilitate access to tertiary education

    REAP (Rural Education Access Programme) assists students from poor rural areas in South Africa to access tertiary education by providing information, resources and referrals to grade 11 and 12 learners in rural schools and calling on state mechanisms such as the National Skills Fund (NSF) and the National Student Financial Aid Scheme (NSFAS) to provide full cost bursaries and subsidised student loans. A network of recruitment volunteers offers career information to learners and guides them through the various application processes. REAP also provides students with a structured support and development programme on campus to facilitate success in their studies.

    For more information, see www.reap.org.za

    4. To promote youth entrepreneurship

    ENACTUS South Africa (formerly SIFE – Students in Free Enterprise) brings together student, academic and business leaders committed to using entrepreneurial action to improve quality of life and standard of living for people in need. Participating students form teams on their tertiary education campuses to create and implement community outreach projects, an experience which not only transforms lives but helps students develop the talent and perspective that are essential to leadership. Projects are formally evaluated and lead projects go to national and international competitions.

    For more information, see http://www.enactusza.org/

    5. In support of the environment

    Endangered Wildlife Trust's conservation strategy involves identifying human-induced threats and affected species to halt or reverse species decline, ensuring the viability of threatened habitats and ecosystems, developing innovative, economically viable alternatives to address harmful impacts to the benefit of people and biodiversity, increasing awareness and mainstream environmental considerations into the daily lives of people and decision makers, exploring and developing opportunities for mentorship and capacity building within the conservation sector and providing a leadership role in ensuring efficient and adequate implementation, compliance and enforcement of conservation legislation.

    For more information, see www.ewt.org.za 

    WWF South Africa (World Wide Fund for Nature)'s goals are to ensure that South Africa's biodiversity is conserved and that our footprint remains within the Earth's capacity to sustain life by securing the integrity of South Africa's ecological assets, ensuring that ecosystem services underpin social and economic well-being and building a climate resilient, low-carbon economy.

    For more information, see www.wwf.org.za 

    6. To facilitate the role of business in society:

    National Business Initiative (NBI) is a voluntary, non-mandated business coalition which facilitates the role of business in society through national, strategic policy interventions, and projects with a catalytic development impact. Working towards sustainable growth and development in South Africa and the shaping of a sustainable future through responsible business leadership and action, its main areas of operation are in promoting environmental sustainability (water, climate change, green economy, energy efficiency) and socio-economic sustainability (Pathways to Employability through skills development, and implementation).

    For more information, see www.nbi.org.za 

    7. To build the next generations of responsible leaders

    The President's Award for Youth Empowerment is a competitive experiential programme of leisure activities for young people that encourages character building, self-reliance and responsibility through service to the community. In prisons, the programme provides a framework for the rehabilitation of young prisoners and, in state-run residential youth facilities, aligns with their individual development plans. In schools, the programme provides a life orientation learning tool for teachers.

    For more information, see www.presidentsaward.co.za 

    8. To facilitate access to quality healthcare services 

    The Nelson Mandela Children’s Hospital (NMCH), one of only five on the continent, is a 200 bed specialist academic referral paediatric hospital serving all children from the southern Africa region, irrespective of their ability to pay. The hospital will also facilitate the training and employment of paediatric medical professionals thereby addressing a dire need for this competency in South Africa,   see  www.nelsonmandelachildrenhospital.org or https://www.youtube.com/watch?v=B3pZ7ExDQ6U

    General 

    The Barloworld Education Trust (BET) is one of four trusts established when Barloworld concluded its major empowerment transaction in South Africa. This trust offers bursaries to black students studying for specified tertiary qualifications and is funded by dividends from Barloworld. BET bursaries have been awarded to 4 students for the 2018 academic year, who are studying at South African tertiary institutions. The bursaries are annual allocations and are reviewed based on the bursar's academic results and vacation work reports. Barloworld dividends received have been utilised to fund studies which include tuition, prescribed books, registration and examination fees, and in many instances, residence, food and travel costs.

    A further 73 bursaries have been awarded through Barloworld business units, bringing the total number of bursars in the group to 77 for 2018.

    There have not been any significant exits from any community during the period.

    Barloworld Siyakhula (Pty) Limited is the enterprise development initiative of Barloworld Limited, a focused distribution company with an offering that includes integrated product support and solutions.

    Barloworld Siyakhula was established to foster sustainable Broad-Based Black Economic Empowerment (B-BBEE) through financial and non-financial support primarily to small and medium suppliers, contractors and enterprises within the Barloworld value chain. The fund will also explore and consider Greenfield business opportunities that may exist to establish new business ventures in association with black entrepreneurs.

    Barloworld believes in sustainable economic growth and has committed to promoting and enhancing B-BBEE in its business sectors through the creation and development of small and medium enterprises (SMEs). For this reason, and with the objective of empowering black entrepreneurs and creating sustainable job opportunities for the marginalised and unemployed people, Barloworld Siyakhula was founded with an initial capital of R20 million. Committed accumulated funds at present are in excess of some R250 million since inception. This entails investment in black empowered and black-owned SMEs and the creation of joint ventures, aligning itself with Barloworld's established BEE strategies for preferential procurement, enterprise development and corporate social investment.

    Barloworld Siyakhula's primary objectives are to:

    • bridge the socio-economic divide, and
    • contribute to the process of transformation, job creation and skills transfer through sustainable partnerships.

    Siyakhula has supported over 120 black owned and black women owned companies and works closely with them to ensure that they are competitive and sustainable. We have assisted in creating over 700 jobs in in these companies.

    Supplier diversity

    Our supplier development strategy is informed by global best practice, which seeks to strengthen efficiencies within the traditional supplier base while also increasing capacity and procurement among non-traditional, historically disadvantaged service providers. In an increasingly multi-cultural marketplace, these efforts are essential to promoting sustainability and creating value among our stakeholders. Diversity and inclusion within our supply chain is championed by Barloworld Siyakhula, our enterprise development arm. Siyakhula was founded in 2007 in response to the drive towards black economic empowerment and transformation in South African business. Building upon their successful launch in 2014, we continued group-wide supplier development workshops in 2015, 2016 and in 2017. In 2018 we followed up with increased efforts on preferential procurement across all divisions and business units in order to bolster access to the Barloworld value chain for black owned and black women owned entities.

    Strategic partnerships

    Strategic partnerships

    Standard Bank

    In 2016 we initiated a supplier development financing collaboration with Standard Bank, to enable beneficiaries to access loan finance from Standard Bank. Standard Bank and Barloworld contributed an additional R8.7 million in non-recoverable development funds for this effort. The target is SMEs eligible for procurement opportunities within the Barloworld value chain. This partnership strengthened in 2018 where we assisted our beneficiaries to prepare fundable business cases for consideration at Standard Bank.

    Empowerdex

    As part of its empowerment strategy, Siyakhula has partnered with Empowerdex to implement B-BBEE and transformation within the group’s value chain.

    One of South Africa’s leading B-BBEE rating agencies, Empowerdex provides Barloworld with a range of services including empowerment auditing, advisory and consulting support. In addition, the agency assists with Siyakhula’s various supplier outreach and educational initiatives.

  • 413-2: Operations with significant actual and potential negative impacts on local communities

    The reporting organization shall report the following information:
    a. Operations with significant actual and potential negative impacts on local communities, including:
    i. the location of the operations;
    ii. the significant actual and potential negative impacts of operations.

    Given the nature, urban location and scale of the group's operations, none have significant potential or actual negative impacts on local communities.