Organisational profile: 102-1 to 102-13

  • 102-1: Name of the organization

    The reporting organization shall report the following information:
    a. Name of the organization.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    These aspects are covered in the Barloworld 2018 Integrated Report and related disclosures.

  • 102-2: Activities, brands, products, and services

    The reporting organization shall report the following information:
    a. A description of the organization's activities.
    b. Primary brands, products, and services, including an explanation of any products or services that are banned in certain markets.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    Given the nature of our businesses, which includes customer contracts in fleet services, logistics, mining, marine and construction, a relatively high percentage of the group’s revenue is annuity, or significant Business to Business based. Some 60% of the group revenues is estimated to be in this category.

    Technology and e-business

    All businesses are appropriately leveraging technology to optimise their solutions offerings. Online business initiatives and platforms in all business units enhance the coverage, efficiency and effectiveness of our activities and shared value creation for our stakeholders.

    Given the nature of our businesses, technology and electronic services solutions (online / e-commerce) is playing an increasing role in all our divisions’ business models. Examples include Automotive’s Digital Disposal Solutions business which provides innovative disposal solutions which focusses on various digital channels through which vehicles are sold. Across the group some 7% of revenues during the period were from online businesses and/or platforms.

    The benefits of online / e-commerce include: Customer portals to facilitate seamless online transactions; online marketing and lead management for faster response and a mobile communications and social media strategy increases interactions and customer feedback.

    In addition to online or e-commerce, technology has a major role in the operations of the business. This includes real-time fleet management through connected assets leading to a reduction of operating costs, big data and predictive analytics, developing customer insights that drive productivity, safety and sustainability benefits and re-orientating our relationships with customers to that of a trusted partner and adviser.

  • 102-3: Location of headquarters

    The reporting organization shall report the following information:
    a. Location of the organization's headquarters.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    These aspects are covered in the Barloworld 2018 Integrated Report and related disclosures.

  • 102-4: Location of operations

    The reporting organization shall report the following information:
    a. Number of countries where the organization operates, and the names of countries where it has significant operations and/or that are relevant to the topics covered in the report.
    Integrated Report:

    These aspects are covered in the Barloworld 2018 Integrated Report and related disclosures.

  • 102-5: Ownership and legal form

    The reporting organization shall report the following information:
    a. Nature of ownership and legal form.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    Barloworld is incorporated in South Africa under the provisions of the Companies Act, No. 71 of 2008, as amended (Companies Act). The company is listed on the Johannesburg Stock Exchange (JSE) and maintains secondary listings on London Stock Exchange (LSE) and Namibia Stock Exchange.

  • 102-6: Markets served

    The reporting organization shall report the following information:
    a. Markets served, including:
    i. geographic locations where products and services are offered;
    ii. sectors served;
    iii. types of customers and beneficiaries.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    Given the nature of our businesses, which includes customer contracts in fleet services, logistics, mining, marine and construction, a relatively high percentage of the group’s revenue is annuity, or significant Business to Business based. Some 60% of the group revenues is estimated to be in this category.

  • 102-7: Scale of the organization

    The reporting organization shall report the following information:
    a. Scale of the organization, including:
    i. total number of employees;
    ii. total number of operations;
    iii. net sales (for private sector organizations) or net revenues (for public sector organizations);
    iv. total capitalization (for private sector organizations) broken down in terms of debt and equity;
    v. quantity of products or services provided.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    These aspects are covered in the Barloworld 2018 Integrated Report and related disclosures.

  • 102-8: Information on employees and other workers

    The reporting organization shall report the following information:
    a. Total number of employees by employment contract (permanent and temporary), by gender.
    b. Total number of employees by employment contract (permanent and temporary), by region.
    c. Total number of employees by employment type (full-time and part-time), by gender.
    d. Whether a significant portion of the organization's activities are performed by workers who are not employees. If applicable, a description of the nature and scale of work performed by workers who are not employees.
    e. Any significant variations in the numbers reported in Disclosures 102-8-a, 102-8-b, and 102-8-c (such as seasonal variations in the tourism or agricultural industries).
    f. An explanation of how the data have been compiled, including any assumptions made.
    Integrated Report:

    We understand that our employees are the foundation and drivers of our success. Accordingly, one of our three strategic objectives is: Instill a high-performance culture and Talent is an area of focus in the delivery of our strategy and ambitions. Creating value through – and for – employees by attracting, developing and retaining the globally competitive people necessary to implement our strategy and meet our growth targets remains one of the group’s most vital attributes.

    Specific activities include talent management, developing internal resources for promotion through detailed development needs analysis per person, leadership style, performance management and remuneration, and continued focus on technical skills upliftment.

    Number of employees* - Group 2018   2017   2016  
    Equipment and Handling 5 788   5 790   6 236  
       Equipment 5 763   5 766   5 792  
       Handling 25   24   444  
    Automotive and Logistics 11 510   12 177   13 205  
       Automotive 7 115   7 397   8 033  
       Logistics 4 395   4 780   5 172  
    Corporate 119   118   106  
    Total 17 417   18 085   19 547  

    *Includes permanent employees and contractors > 12 months. Excludes non-executive directors.

     Number of contractors > 12 months - Group 2018   2017    2016   
    Equipment and Handling 90    76    92   
       Equipment 90    76    53   
       Handling 0      39   
    Automotive and Logistics 200    299    179   
       Automotive 48    71    29   
       Logistics 152    228    150   
    Corporate 2    0     
    Total 292    375    271   

    In addition to the permanent workforce and contractors greater than 12 months, the group employed 166 people on short term/temporary contracts less than 12 months as at 30 September 2018.

     Workforce* by region 2018   2017    2016   
    South Africa 14 230   14 981   16 372  
    Rest of Africa 2 053   2 053   2 176  
    Europe and Russia 1 044   942   859  
    Middle East 90   109   140  
    Total 17 417   18 085   19 547  

    *Includes permanent employees and contractors > 12 months. Excludes non-executive directors.

    Employee breakdown by Gender Global Breakdown - 2018   Global Breakdown - 2017   Global Breakdown - 2016  
    Male   Female   Total   Male   Female   Total   Male   Female   Total  
    Board* 2   0     2       5   0   5  
    Executive 28   15   43    32   9   41    35   10   45  
    Senior Management 94   38   132    105   40   145    117   42   159  
    Middle Management 1 192   769   1 961    1 317   802   2 119    1 438   830   2 268  
    Skilled Upper 5 955   2 675   8 630    6 076   2 687   8 763    6 755   2786   9 541  
    Semi-skilled/apparent./train 4 738   1 285   6 023    4 952   1 305   6 257    5 400   1291   6 691  
    Labour/Unskilled 454   172   626    516   242   758    572   266   838  
    Total operations 12 463   4 954   17 417    13 000   5 085   18 085   14 322   5225   19 547  

    *Includes permanent employees and contractors > 12 months. Excludes non-executive directors.

    As reflected by the totals in the above tables, employment numbers remain largely stable and are not impacted materially by any seasonal variations.

  • 102-9: Supply chain

    The reporting organization shall report the following information:
    a. A description of the organization's supply chain, including its main elements as they relate to the organization's activities, primary brands, products, and services.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    Apart for its Logistics business, the group distributes leading international brands in the earthmoving, power, automotive and agriculture industries. In this regard and to sustain long-term value creation for all stakeholders as envisaged by our Values and sustainability principles, it is important to align ourselves with a robust supply chain, responsible leading principals and Original Equipment Manufacturers (OEMs).

    Mutual respect, trust, support and benefit, guided by our governance and ethical frameworks, underpin our relationships throughout our supply-chain. The group has developed a set of conduct criteria and standards for suppliers which form part of a supplier due diligence initiative. Where non-conforming suppliers are identified, appropriate action is taken according to the circumstances.

    Integral to our value chain is our commitment to being a leader in sustainable development and identifying competitive advantages through solutions that help customers achieve their sustainability objectives, facilitate a transition to lower carbon economies and expand into related opportunities.

    A key socio-economic driver, within the South African context, is integrating previously disadvantaged groups into the economy. Aside from our OEMs, we support and empower a range of small and medium-sized suppliers, contractors and enterprises in our supply chain, through our South African-oriented enterprise development initiatives and preferential procurement programme. We are committed to the localisation and empowerment of our supply chain where practicable, and have completed a number of supplier development interventions in South Africa. We also put increased effort 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. Founded in 2007, Barloworld Siyakhula is Barloworld’s primary enterprise and supplier development arm, driving black economic empowerment and transformation in our South African operations.

    Since inception, Siyakhula has invested an accumulative spend of over some R250 million on enterprise and supplier development, indirectly sustaining over 700 jobs. Comprehensive assistance provided to over 120 SMMEs in South Africa – fostering economic growth.

    Barloworld represents on behalf of our principals include Caterpillar, Avis, Budget, Audi, BMW, Ford, Mazda, Mercedes-Benz, Toyota, Volkswagen and others. The group is therefore part of supply chains that are geographically globally diverse; and reflect international best practice in the manufacture, sale, service, support and disposal of products. These standards are complemented by Barloworld’s own ethics, values and standards. We are committed to working with suppliers to ensure our customers’ objectives are met and their competitive position enhanced. A number of our principals have been included on various environmental and/or sustainability related indices, further supporting their reputation as responsible leading companies.

    Mindful of our responsibilities in our value chain, a number of initiatives have been implemented to assess and limit any potential risks emanating through our supply chain. Our code of conduct includes:

    • ‘We build outstanding long-term relationships with our principals, suppliers and customers’ “…we expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights…”

    We have assessed our principals that account for some 45% of our procurement spend, for environmental, labour, human rights, bribery and corruption, and corporate citizenship risks. All principals have been assessed as low risk for each of the aspects above. However, we remain aware of the well-publicised Volkswagen and Audi emission issues which affected diesel customers internationally. We are monitoring this situation and recognize associated risks. The Volkswagen and Audi vehicles sold by us in our territory meet the local South African emissions compliance standard, and our operations have consequently not been directly impacted.

    The globally diverse manufacturing locations of our OEMs, mitigates economic, social and environmental risks and enhances the group’s resilience.

    Third party service providers and suppliers (TPSP&S) in all business divisions have been subjected to a risk assessment and due diligence process in relation to bribery and corruption. This due diligence process involves the integration of a more rigorous assessment of TPSP&S into the existing procurement processes and setting clearly defined minimum requirements. This process is now applied to new TPSP&S and is ongoing for existing TPSP&S, in accordance with the Barloworld Due Diligence policy.

    To date some 17 300 suppliers are being covered by such assessment, with around 3 400 suppliers being included over the past year. As part of this process, some 5 200 suppliers have signed the Barloworld Supplier and Service Provider Code of Conduct which includes, among other things, the following voluntary undertaking from suppliers:

    “The supplier or service provider understands that it has responsibility for its own supply chain and for managing standards of conduct within its supply chain. It therefore agrees to encourage and promote high ethical standards and adherence to international best practices in human rights, health, safety and environmental standards when undertaking its contractual obligations towards Barloworld.”

    Our commitment to legitimate supply chains is reflected in our Worldwide Code of Conduct which states:

    “We build outstanding long-term relationships with our principals, suppliers and customers.

    The company’s strength and longevity are the result of our ability to sustain long lasting, mutually rewarding relationships with our principals, suppliers and customers.

    Our principals and suppliers serve as a critical link between our company and our customers worldwide. We rely on them to participate with us as partners in building and maintaining the long-standing customer relationships that have made Barloworld successful. We value their positive contributions to our reputation and their deep commitment to the customers and communities we serve. We sustain our outstanding relationships with them through trust, communication and shared rewards. We work constantly with them to provide products, services and support solutions necessary to exceed customer expectations.

    We look for principals and suppliers who demonstrate strong values and commit to the ethical principles outlined in the Barloworld Code of Conduct. We expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights. No supplier is required to buy Barloworld products in order to compete for business or to continue as a supplier. We encourage fair competition among our potential suppliers.”

    As reflected in the group’s Value added statement, its supplier spend is some R47 783m.

    1. Diverse and leading world-class Original Equipment Manufacturers (OEMs) to ensure sustainable competitiveness through leading products and solutions, support, systems, values, governance, legitimacy and positively impact our risk profile.
    2. Localisation and empowerment of local suppliers to ensure integration of previously disadvantaged groups into the economy. We support and empower a range of small and medium-sized suppliers, contractors and enterprises in our supply chain, through our South African-oriented enterprise development initiatives and preferential procurement programme. We are committed to the localisation and empowerment of our supply chain where practicable in support of the local communities in which we operate.
    3. Alignment with the group’s Worldwide Code of Conduct to ensure legitimacy and to support our commitment to responsible corporate citizenship, shared value creation and our aspirational group targets.

    Where possible we leverage opportunities across our supply chain and examples of this include:

    1. Barloworld Siyakhula
    2. Barloworld Remanufacture and rebuild initiatives. 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 has invested USD11 million and R240 million in facilities in Russia and South Africa respectively. This programme benefits local communities through skills development and job creation, positively impacts our environmental footprint, benefits customers, and enhances the group’s competitiveness and ability to provide innovative customer solutions.
  • 102-10: Significant changes to the organization and its supply chain

    The reporting organization shall report the following information:
    a. Significant changes to the organization's size, structure, ownership, or supply chain, including:
    i. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions;
    ii. Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations); iii. Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including selection and termination.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    The summary table below reflects the impact of the discontinued operation (Equipment Iberia – effective June 2018) on material sustainability indicators for the group:

    Sec. Indicators Barloworld Group non-financial summary
    2018 2017  2016
    Continuing
    operations
    only
      Including 
    BWE 
    Iberia
      % Δ   Continuing
    operations
    only
      Including 
    BWE 
    Iberia
      % Δ   Continuing
    operations
    only
      Including 
    BWE 
    Iberia
      % Δ  
    Health and Safety
    (Human)
      Work-related Fatalities 2   2     3   3     1   1    
      LTIFR# 0.69   0.75   -8%   0.75   0.83   -10%   0.75   0.83   -10%  
      Severity Index (SI)* 8.86   8.71   2%   7.78   8.62   -10%   8.00   8.70   -8%  
      % of SA employees who know their HIV Status 89%   89%     72%   72%     86%   86%    
      % of SA employees tested HIV Positive 6%   6%     5%   5%     5%   5%    
    Energy
    (Natural)
      Total Fuel (KL) 71 311   72 381   -1%   74 709   76 226   -2%   73 409   74 983   -2%  
      Grid Electricity (MWh) 73 312   77 191   -5%   77 630   83 716   -7%   78 067   84 295   -7%  
      Non-renewable Energy (GJ) 2 947 696   3 001 372   -2%   3 087 269   3 165 249   -2%   3 037 034   3 117 091   -3%  
      Non-renewable Energy Intensity^  46.5   45.1   3%   49.8   47.8   4%   48.9   46.8   4%  
    GHG Emissions
    (Natural)
      Emissions (tCO2e) (Scope 1 and 2) 257 650   261 762   -2%   270 707   276 734   -2%   266 769   272 961   -2%  
      Emissions Intensity+  (Scope 1 and 2) 4.1   3.9   5%   4.4   4.2   5%   4.3   4.1   5%  
      Emissions (tCO2e) (Scope 3 – Air Travel) 5 732   5 941   -4%   6 764   7 256   7%   6 668   7 512   -11%  
      Emissions (tCO2e) (Scope 3 – Rental Fleet) 109 540   109 540   -   113 689   113 689   -   105 179   105 179   -  
    Water
    (Natural)
      Water Withdrawals (ML) 588   599   -2%   674   704   -4%   755   788   -4%  
      Water Withdrawal Intensityπ 9.3   9   3%   10.9   10.6   3%   12.2   11.8   3%  
      Water Recycled (KL) 148 845   149 461   0%   166 801   168 631   -1%   132 741   135 159   -2%  
      Percentage water recycled (%) 25.3%   25%   1%   24.8%   24.0%   3%   17.6%   17.2%   2%  
    Waste
    (Natural)
      Solid waste disposed through CWP** 99%   99%     97%   97%     95%   95%   -1%  
      Liquid waste disposed through CWP** 100%   100%     99%   100%   -1%   100%   100%    
             
     
      #Lost-time injury frequency rate =   No.of LTIs x 200 000
      Total Hours Worked
      * SI =   LTI Days lost
      Number of LTIs
       
             
      ^Non-renewable Energy intensity = GJ/R1m revenue          +Emissions intensity = tCO2e/R1m revenue     
      πWater Withdrawal intensity = KL/R1m revenue  **Certified Waste Providers    

    These aspects are covered in the Barloworld 2018 Integrated Report and related disclosures.

  • 102-11: Precautionary Principle or approach

    The reporting organization shall report the following information:
    a. Whether and how the organization applies the Precautionary Principle or approach.

    The group is mindful of the precautionary principle and its related obligations. Our Code of Ethics (includes ‘Protect the environment’); our Worldwide Code of Conduct (‘We focus on environmental responsibility and preventing waste’), and structured risk management approach ensure that future risks to the public and the environment from its activities are identified and considered. Activities related to any identified risk are addressed. This applies to all group activities, including building new facilities. The group's leading principals would be mindful of this principle in developing and introducing new products.

  • 102-12: External initiatives

    The reporting organization shall report the following information:
    a. A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses.
    Integrated Report:
    Annual General Meeting:
    Consolidated Annual Financial Statements:

    Obligatory

    1. The King Report on Governance for South Africa (King IV), effective in the current financial year.
    2. Voluntarily in the group

    3. Became a signatory to the South African Energy Efficiency Accord in 2005
    4. Is a signatory to the South African National Business Initiative's (NBI) Energy Efficiency Leadership Network's (EELN) Pledge which is also signed by the Department of Energy in South Africa in 25 September 2012 (formally)
    5. Applies the South African Department of Trade and Industry's broad-based black economic empowerment scorecard and relevant Industry Charters on empowerment and transformation
    6. Certain operations have ISO and other related certifications. See schedule of externally certified programmes and coverage.
  • 102-13: Membership of associations

    The reporting organization shall report the following information:
    a. A list of the main memberships of industry or other associations, and national or international advocacy organizations.
    Integrated Report:

    The group is a member of or signatory to a number of institutional associations, including:

    • BLSA – Business Leadership South Africa
    • BUSA – Business Unity South Africa Environment committee
    • EWT – Endangered Wildlife Trust
    • EELN – Energy Efficiency Leadership Network
    • Institute Of Directors
    • Institute of Internal Auditors South Africa
    • IRMSA – Institute of Risk Management South Africa
    • NBI – National Business Initiative
    • RIMS – Risk and Insurance Management Society
    • South African Institute of Chartered Accountants
    • SASDC – South African Supplier Diversity Council
    • The Ethics Institute of South Africa
    • World Business Council for Sustainable Development (through NBI)
    • WWF – World Wide Fund For Nature
    • Various chambers of commerce and industry
    • Various industry and other relevant associations through its respective divisions
    • For more detail see also Barloworld certifications and accreditations coverage