Supplier Environmental Assessment: 308-1 to 308-2

  • Management Approach

    Our commitment to environmental responsibility is carried into our supply-chain through our Worldwide Code of Conduct, the applicable aspects are:

    • Sustainability Value includes:
      We focus on environmental responsibility and preventing waste: '...We are committed to complying with environmental laws and regulations and expect our suppliers to do the same'.

    An internal review has also been conducted on all our major principals and Original Equipment Manufacturers for risks relating to the environment, in addition to other aspects. These suppliers account for the some 45% of our procurement spend in the group. These 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.

    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 a more rigorous screening 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.”

    The Supplier and Service Provider Code of Conduct also specifically requires our suppliers to comply with environmental laws and to recognise their responsibility towards the environment and maintain proper systems to prevent and/or minimise potential hazards. In this regard it states:

    Health, Safety and Environment:

    The supplier or service provider must comply with applicable health, safety and environmental laws, regulations and standards and provide a healthy and safe working environment to prevent accidents and injury and promote safety throughout the supply chain. The supplier or service provider recognises its responsibility towards the environment and maintains proper systems to prevent and/or minimise potential hazards.

  • 308-1: New suppliers that were screened using environmental criteria

    The reporting organization shall report the following information:
    a. Percentage of new suppliers that were screened using environmental criteria.
    Integrated Report:

    No new OEMs were included in the period. The existing OEMs from prior periods were again assessed during the current period. All principals were assessed as low risk on environmental criteria. These suppliers account for some 45% of our procurement spend in the group. 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 Barloworld Group due diligence policy for doing business with third party service providers and suppliers (TPSP&S) includes a mandated requirement to assess all TPSP&S that are rated as high risk, including new suppliers.

    High risk TPSP&S are expected to sign a supplier or service provider code of conduct to commit to ethical dealing and to prevent bribery and corruption. One of several provisions in this voluntary undertaking is stated as follows:

    “Health, safety and environment: The supplier or service provider must comply with applicable health, safety and environmental laws, regulations and standards and provide a healthy and safe working environment to prevent accidents and injury and promote safety throughout the supply chain. The supplier or service provider recognises its responsibility towards the environment and maintains proper systems to prevent and/or minimise potential hazards."

    As a means to monitor this requirement, each division maintains statistics of the number of TPSP&S that have signed this undertaking, including the number of new suppliers.

    Some 950 out of around 3 400 (28%) TPSP&S have signed the supplier and service provider code of conduct.

  • 308-2: Negative environmental impacts in the supply chain and actions taken

    The reporting organization shall report the following information:
    a. Number of suppliers assessed for environmental impacts.
    b. Number of suppliers identified as having significant actual and potential negative environmental impacts.
    c. Significant actual and potential negative environmental impacts identified in the supply chain.
    d. Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which improvements were agreed upon as a result of assessment.
    e. Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which relationships were terminated as a result of assessment, and why.
    Integrated Report:

    An internal review has also been conducted on all our major principals and Original Equipment Manufacturers for risks relating to the environment, in addition to other aspects. These suppliers account for some 45% of our procurement spend in the group. These 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.

    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 a more rigorous screening 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 Code of Conduct which includes, among other things, the following voluntary undertaking from suppliers:

    “The supplier 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.”

    The Supplier Code of Conduct also specifically requires our suppliers to comply with environmental laws and to recognise their responsibility towards the environment and maintain proper systems to prevent and/or minimise potential hazards. In this regard it states: