Transformation

Intent   Actions
Enable our strategic goals: Drive business practices that enhance our social equity and limit our environmental footprint   Improve our environmental performance against our 2020 aspirational targets
  Develop and implement meaningful interventions that transform our society
  Invest in initiatives that drive social cohesion and build resilient communities

Barloworld acknowledges transformation as an economic imperative. We recognise the role we can play to bring about meaningful change in the societies where we operate.

Our performance in 2018
Available
points
  2018
score
2017
score
 
Ownership 25   24.64 24.64  
Management control 19   12.44 12.98  
Enterprise and supplier development (ESD) 40   30.1 28.69  
Skills development 20   18.41 20.08  
Socio-economic development 5   5 5  
Total score 109   90.58 91.39  
B-BBEE level 3 3  

Barloworld made steady progress on issues of management and control, ensuring we are representative of the societies in which we operate. Our development programmes focus on providing meaningful interventions that aim to improve technical capability and capacity, as well as delivery and cost capabilities. We seek to nurture diversity in our supply chain while ensuring we create platforms for development and innovative solutions.

Enterprise development

Founded in 2007, Siyakhula is our primary vehicle for supplier and enterprise development for our South Africa operations. Through comprehensive support programmes aimed at empowering small, micro and medium-sized enterprises (SMMEs), Siyakhula promotes B-BBEE, not only within Barloworld, but the broader South African society. Since inception, Siyakhula has invested accumulative spend of over R250 million with assistance provided to 120 SMMEs, indirectly sustaining over 700 jobs. For more information: http://www.barloworldsiyakhula.com

Localisation

In 2017, we reported on developing black-owned engineering firms in the areas of manufacturing, and repair of parts and components for earthmoving equipment. We identified enterprises with capabilities in steel fabrication, milling, machining and grinding that would benefit from inclusion in the Siyakhula enterprise and supplier development programme. We also considered companies providing engineering services including design, repair and installation of earthmoving equipment.

In the past year, Barloworld Equipment, through our Siyakhula programme, incubated seven businesses. We aim to grow these businesses into mature and independent manufacturing entities with capacity to supply Caterpillar components. To date, some of the successes in the programme include:

  • Lucient Engineering and Construction (Pty) Ltd provides engineering maintenance services to Barloworld Equipment's extended mining product range (EMPR) division and recently started operations in the Mpumalanga province. The company employs 200 people, and conducted over 80 dragline services and accomplished more than four planned maintenance sessions in the last 10 months.
  • B Engineering (Pty) Ltd specialises in precision engineering and is based in Johannesburg. The company received support to acquire machining centres and lathes, and recently secured an order from Caterpillar to supply edge cutting components.
  • Phumzile Engineering Services & Supplies (Pty) Ltd is a female-owned engineering company based in Polokwane. The company received training at Caterpillar's Qingzhou factory in China and has subsequently been appointed as secondary dealer for Caterpillar SEM equipment in the Limpopo province.

Other beneficiaries in the programme are engaging with the Barloworld Equipment and Caterpillar procurement teams for opportunities to supply components and services. We are encouraged by the progress and commitment to transform the value chain.

Skills development

Barloworld recognises that skills development in the form of learnerships, courses and workplace training can provide meaningful opportunities for people to gain access to the workforce. During the reporting year, we established a skills development forum to coordinate and align efforts to enhance and fast track skills development initiatives. Some of our skills development initiatives were also recognised through industry rewards. These included:

  • Barloworld Equipment won the South African Graduate Employers Association (SAGEA) silver award for the Best Integrated Campaign for its graduate development programme
  • Barloworld Equipment was recognised at the Gender Mainstreaming Awards for its investment in young women
  • Barloworld Logistics won a Canadian Award for its driver employee engagement programme
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