| Dimension |
| Trend |
|
Potential impact |
|
Our response |
Political and regulatory |
|
Countries are increasingly adopting regional approaches to security |
|
Adopting regional strategies increase the complexity of doing business in the global arena |
|
Through our participation in industry bodies, we aim to seek common solutions for challenges |
|
|
| The ongoing United States-China trade war |
|
The trade war between these countries limits the potential for growth in our operating areas |
|
We continue to engage our customers to meet their needs and to take advantage of opportunities |
| |
|
Sanctions and geopolitical uncertainty in Russia |
|
While Barloworld has proved resilient against the sanction regime, we continue to closely monitor developments as this could impact the profitability of our customers |
|
We continue to monitor developments, and proactively engage our stakeholders for common solutions |
|
|
| Political uncertainty in South Africa as a result of policy changes and election rhetoric leading up to 2019 |
|
Decline in consumer and investor confidence |
|
Our engagement with government institutions and our participation in industry bodies seek solutions for shared challenges |
|
|
| Mining Charter policy uncertainty in South Africa around the Mining Charter, that was gazetted at the end of September 2018 |
|
Curtailment of some mining investments in the region |
|
Engagement and representation through industry bodies on responses of interest to the industry and government |
| |
|
Amendments to the mining regulation in the DRC, with certain minerals subject to higher royalties |
|
Decline in consumer and investor confidence |
|
We continue to engage our customers to ensure we understand the potential impact and offer cost effective, tailored solutions |
Economic |
| Global economic growth is expected to remain stable at 3.1% for 20181 |
|
Economic gains are unevenly distributed between regions, underscoring the vulnerability of certain operating jurisdictions |
|
We closely monitor economic developments in the regions where we operate and align our approach in response |
|
|
| South Africa experienced constrained economic growth and slipped into a technical recession during 2018 |
|
A constrained economy resulted in reduced consumer activity and oscillating investor confidence |
|
We closely monitor the progress of the economic recovery plan launched in South Africa and seek to reduce our costs and remain agile |
|
|
| Russian economy is expected to grow by 1.9%2 |
|
Geopolitical factors may have an impact on pricing and the availability of products |
|
We engage our customers and seek opportunities to ensure product availability |
|
|
| Many global commodity prices remain depressed, with certain commodities showing improvement |
|
The impact is most acute for our equipment business servicing this market |
|
Reduce costs and optimise efficiencies to take advantage of a potential upswing |
|
|
| Infrastructure spend in South Africa contracted, with some major companies in business rescue or liquidation |
|
A contracting construction industry erodes our customer base |
|
Closely monitor the plans for economic recovery in South Africa and reduce costs |
|
|
Currency volatility in operating jurisdictions |
|
Negative impact on infrastructure spend by governments |
|
Closely monitor global currency trends and align our approach to respond |
Social |
| Localisation remains the major social trend |
|
Increasing focus on preserving local knowledge, employing local talent and ensuring execution strategies speak to the local context |
|
Our CSI programmes prioritise local development while our talent acquisition approach gives priority to local talent for employment |
|
|
| Social unrest in South Africa impacted our Logistics business through asset destruction |
|
Escalating social tension and associated violence threatens the security of our freight and people |
|
Our engagement with government institutions seek common solutions for security threats |
|
|
| The standard of living increased exponentially in Russia in recent years |
|
While growing concerns over the lack of structural reforms are evident, the majority of the population acknowledges the progress |
|
Societal progress and a growing middle class could present opportunities for our business and broaden our customer base |
|
|
Technology threatens job security as certain skills become redundant |
|
Implement skills development initiatives that transition the workforce |
|
We seek to diversify our skills to ensure we remain relevant and fit for opportunity |
Technology |
| Autonomous, electrified, shared and connected transport solutions for individuals are imminent |
|
Changing consumer preferences will require innovative solutions |
|
We seek to understand and integrate new technology solutions to offer innovative solutions |
|
|
| Breakthroughs in artificial intelligence (AI) |
|
Digital business models that will facilitate competitiveness are required |
|
We leverage the latest technologies to build flexible, digital business models |
|
|
| The rise of contractual services where customers can access cloud-based platforms that coordinate real-time shipments |
|
Disruptive industry forces or players will significantly alter the operating landscape of the future |
|
Our technology-enabled solutions anticipate customer problems before they disrupt production |
|
|
3D printing technology is rapidly transforming business models in the industrial world |
|
Customers seek cost and production efficiencies from connected technologies |
|
We are progressing the ability to digitally transform customer product requirements and service touch points |
Environmental |
| Lower carbon future, water scarcity, responsible waste management |
|
Public pressure for transparency increases and opens the way for companies to demonstrate sustainability leadership, including environmental stewardship |
|
Internal strategies, policies and aspirational targets are in place aimed at reducing our environmental footprint and ensuring responsible corporate citizenship |
|
|
| Changing consumer preferences for more environmentally friendly products and solutions that assist them to reduce their environmental footprint |
|
Innovative solutions are required to ensure products and solutions remain relevant and competitive |
|
We leverage our experience, skills and networks to develop innovative products and solutions that assist customers to realise their environmental ambitions |
|
|
Responsible investment practices and decisions are increasingly taking into account environmental factors |
|
Organisations that do not practice responsible environmental stewardship may not be considered attractive investments |
|
Our integrated management approach, including our values, embed sustainability. We report on environmental aspects and provide credible and relevant information, including external assurance for material environmental disclosures |
