INTEGRATED ANNUAL REPORT 2011 GRI RESPONSES  

Martin Laubscher (51)
Chief executive officer:
Automotive and Logistics

BAcc, BCompt (Hons),
CTA, MCom
(Business Management)
24 years’ service

Operating performance

  Revenue
Year ended 30 September
  Operating profit/(loss)
Year ended 30 September
  Net operating assets
30 September
Economic 2011
Rm
  2010
Rm
  2011
Rm
  2010
Reclassified*
Rm
  2011
Rm
  2010
Reclassified*
Rm
 
Car rental southern Africa 3 341   3 204   220   283   2 429   2 580  
Motor retail 17 895   16 078   379   340   2 982   2 608  
Southern Africa 14 050   12 341   279   258   1 650   1 599  
Australia 3 845   3 737   100   82   1 332   1 009  
Fleet services southern Africa 1 779   1 545   285   277   2 455   2 269  
Logistics 3 400   3 678   27   10   870   855  
Southern Africa 2 294   2 256   49   50   392   398  
Europe, Middle East and Asia 1 106   1 422   (22)   (40)   478   457  
                         
  26 415   24 505   911   910   8 736   8 312  
Share of associate income         9   4          

*Reclassification of interest paid in the fleet services (leasing) business from cost of sales to finance costs.

  Petrol and diesel (ML)
Year ended
30 September
  Electricity (MWh)
Year ended
30 September
  Energy (GJ)
Year ended
30 September
  Emissions (CO2e tons)
Year ended
30 September
  Water (ML)
Year ended
30 September
Environmental 2011   2010   2011   2010   2011   2010   2011   2010   2011   2010  
Car rental southern Africa 3.06   3.17   5 672   4 987   125 816   126 780   13 283   13 927   109   90  
Motor retail 6.62   6.63   35 688   38 339   365 316   375 185   53 274   61 439   289   273  
Southern Africa 5.53   5.59   31 870   34 537   312 796   324 565   46 963   55 747   275   255  
Australia 1.09   1.04   3 818   3 802   52 520   50 620   6 311   5 692   14   18  
Fleet services southern Africa 0.59   0.56   1 507   1 488   25 795   24 739   2 940   3 190   5   4  
Logistics 14.35   15.85   9 665   10 713   628 738   694 262   53 599   55 017   67   63  
Southern Africa 13.48   15.03   6 578   7 494   595 943   653 449   49 619   50 756   56   54  
Europe, Middle
East and Asia
0.87   0.82   3 087   3 219   32 795   40 813   3 980   4 261   11   9  
                                         
  24.62   26.21   52 532   55 527   1 145 665   1 220 966   123 096   133 573   470   430  

  Employee headcount
Year ended
30 September
  LTIFR
Year ended
30 September
  Fatalities
Year ended
30 September
  B-BBEE rating*
Year ended
30 September
Social 2011   2010   2011   2010   2011   2010   2011   2010  
Car rental southern Africa 1 737   1 675   0.60   1.00           2   2  
Motor retail 5 019   5 174   1.93   1.41           3   3  
Southern Africa 4 527   4 697   1.95   1.43                  
Australia 492   477   1.06   1.31                  
Fleet services southern Africa 463   434   0.00   0.75           2   2  
Logistics 1 916   2 194   0.59   1.11                  
Southern Africa 1 441   1 423   0.76   1.07           2   3  
Europe, Middle East and Asia 475   771   0.51   0.57                  
                                 
  9 135   9 477   1.20   1.19                  

*B-BBEE rating for South Africa only.

Leadership team

Martin Laubscher (51) Chief executive officer. BAcc, BCompt (Hons), CTA, MCom (Business Management). 24
Allan Carter (58) Chief executive: Motor retail Australia. 31
Orlando de Almeida (49) Executive: Human resources. BCom (Hons), BA Industrial Psychology. 16
Roland Egger (46) Chief executive: Used vehicles and disposal solutions. BCom (Hons). 9
Clive Else (53) Chief executive: Avis Fleet Services. CA(SA). 2
Steve Ford (42) Chief executive: Barloworld Logistics. MSc (Eng). 3 months
Gale Lemmert (46) Executive: Transformation, organisational performance and sustainability. BA, LLB, MBA. 8
Litha Nkombisa (44) Chief executive: Motor retail Southern Africa. BCom, MDP. 4
Chris Prinsloo (48) Executive: Sales. 17
Keith Rankin (41) Chief executive: Car rental. BCom (Hons). 13
Andy Richardson (50) Chief financial officer. BCom, BAcc, CA(SA). 5
Mark Tarlton (52) Chief information officer. BSc Eng, MBL. 24
Eugene Tome (43) Executive: Legal. BLC, LLB, LLM, MBL. 14
Christopher Wierenga (36) Executive: Strategy. BCompt. 13

Note: The first figure after each name (in brackets) is their age at date of publication of this report. The second figure is the number of years’ service they have with Barloworld.

Operational review

Automotive and Logistics

Industry perspective

The automotive industry improved further in our financial year. In South Africa new vehicle sales improved by 19%, while the used vehicle market offered some stability post the 2010 FIFA World Cup™. In Australia, the new vehicle market decreased by 2.8%.

SAVRALA (South African Vehicle Rental and Leasing Association) statistics showed the car rental market rose by 7.7% driven mainly by increased activity in the inbound visitor segment and continued growth of the insurance replacement segment. The corporate and local leisure markets experienced a sluggish recovery as businesses and consumers focused on containing discretionary expenditure.

In the logistics industry in South Africa, certain industry sectors are still trading below expectation while others are benefiting from an upturn in volume and demand. Internationally, freight volumes have improved but the industry remains cautious in view of volatile economic markets and uncertainty surrounding the sovereign debt crisis.

A resilient integrated approach

The division improved its operating profit in a difficult and very competitive trading environment. Revenue was R26.4 billion and operating profit R911 million, resulting in an operating margin of 3.4%. New and used vehicle retail sales were 85 092 units, against the previous year’s 80 503 units.

Car rental days in southern Africa improved to 5.1 million from 5.0 million in the prior year. At year-end, 195 788 vehicles were under finance and other management contracts compared to 162 099 vehicles in the prior year. The South African motor retail operations maintained their share in a growing market, while our fleet services operations continued to grow and increased their total fleet under management. Logistics improved activity levels in southern Africa and the Middle East.

Stakeholder value creation

Creation of value for all stakeholders remains central to our activities. The emphasis on sustained improvement was driven by all employees through an integrated set of programmes and initiatives that are continually monitored and assessed against standards and measures.

We continue to create value for our principals and suppliers by investing in infrastructure and business systems, addressing brand exposure, market share and improving business performance. Their confidence in our ability is reflected in new opportunities offered to represent their brands and their ongoing commitment to our operations. Our approach to sustainable development ensures we entrench both our principals’ and Barloworld’s commitment to sustainable practices.

Customer value remains central to the division’s success, and is reflected in our sustained activity levels, increased market shares and independent monitoring. We continue to monitor and focus on customer satisfaction ratings, as we believe it is through exceeding customer expectations, and meeting their changing needs, that we will achieve a sustainable competitive advantage and create superior value for our customers and other stakeholders.

Employee value creation recognises the important role of every employee and institutionalises initiatives and structures aimed at developing, harnessing and directing collective employee wisdom towards our value creation objectives. It also ensures that employees share in the value created. An integrated approach to people management is entrenched throughout the division.

Value created for communities in which we operate is a combination of indirect benefits from employment opportunities, rates and taxes paid, and development, as well as direct benefits arising from corporate social investment initiatives by the business units, which include contributing skills, resources and finance. Our overall approach to good governance ensures that we meet the legitimate interests of all stakeholders.

The division continued to create stakeholder value through six strategic focus areas consistent with the group framework.

The ongoing commitment and focus on employees enhances value creation across all business units in the division. We concentrate on talent attraction and retention, extensive training and development, and attractive employment conditions to secure the requisite skills to meet divisional growth objectives.

Consistent with the group’s approach, we remain committed to the ethos and principles underpinning empowerment and transformation. Entrenching these principles into the strategic and operational decision-making processes, ensures improved verification scores with all business units achieving Level 3 or better ratings, we attained the following B-BBEE dti scorecard ratings in our significant local operations: Avis Rent a Car South Africa – level 2, Avis Fleet Services – level 2, NMI-DSM – level 2, Motor Retail South Africa – level 3, Barloworld Logistics South Africa – level 2.

Sustainable development is integrated into our strategy and ongoing operations. These strategies and initiatives drive the development of products and services to capitalise on emerging sustainable business opportunities, realise cost savings through energy efficiency and other sustainable business practices and enhance the division’s reputation by leading in sustainable development.

Improving financial returns remained a core focus during the year. Optimising business unit performance included maximising both inter- and intra-business unit synergies, as well as the implementation of tight performance targets and objectives. These included prudent capital allocation, optimising vehicle fleet utilisation, reducing working capital, improving asset turn, managing expenses and controlling interest costs. By working in concert, our South African automotive business units optimise opportunities for internal value creation through sourcing; service, repair and maintenance of vehicles, as well as maximising the commercial benefits arising from the disposal of the significant number of quality used vehicles that emanate from the automotive division’s activities.

In pursuing profitable growth, the division is exploring opportunities in southern Africa. Our used vehicle and disposal solutions unit continues to leverage innovative systems and processes to optimise the quality of earnings and provide additional revenue growth opportunities. Identified high-growth businesses for the division include Avis Fleet Services and Barloworld Logistics where the contractual nature of these business offerings provides certainty in cash flow and relatively higher returns on capital employed.

The strategic themes are cascaded into all business units and contribute to the overall success of the division. Comprehensive structures exist throughout the division and its business units in terms of which business risks are regularly reviewed and appropriate measures adopted to address or mitigate such risks. These risks are comprehensively covered and addressed in the division’s strategic initiatives. During the year, the division commenced a comprehensive roll-out of the Barloworld Worldwide Code of Conduct to each employee reaffirming our values and approach to business as part of a wider Ethics and Compliance programme.

Barloworld Automotive

Vision: “To be a recognised leading provider of integrated motor vehicle usage solutions in distribution, rental, fleet management and product support by exceeding stakeholder expectations at every interface.”

A balanced portfolio of operations in Barloworld Automotive including car rental, motor retail, fleet services, and used vehicles and disposal solutions ensures our vision is realised.

Providing customers with a range of integrated motor-vehicle usage solutions to fulfil their specific requirements is the cornerstone of our automotive offering. These solutions include the products and services of our individual business units, as well as unique combinations of these products and services tailored to customers’ specific needs in a seamless combination, effectively and efficiently provided by a single supplier. The offering was further enhanced by acquiring the Dreamworks fuel management business and a majority stake in the Avis Coach Charter licensee, effective early October 2011.

Car rental

Avis Rent a Car Southern Africa operates short-term vehicle rental from over 190 customer service centres focused on the tourism, corporate, local and replacement market segments throughout southern Africa. At peak, the car rental fleet comprised some 20 981 vehicles. The operations in South Africa, Botswana, Lesotho, Mozambique, Namibia and Swaziland are company owned and the remainder are sub-licensed. Avis Point 2 Point is a chauffeur-driven inner-city transfer service. Avis Van Rental operates a sub-licensee network in South Africa. Avis Coach Charter is well positioned in the luxury coach market and Zeda Car Sales disposes of ex-rental vehicles into the trade and to retail customers.

Despite marginally lower rental revenue per day, revenue increased as a result of higher rental days. Rental volumes rose by 2.4%, the average fleet increased by 1.9% and fleet utilisation improved by 0.3%. In the second half of the financial year, the business generated higher profits than the same period last year, which included the full benefits of the 2010 FIFA World Cup™. Market share in rental days across the region was in line with the prior year. Consistent with the division, focus areas in the year ahead include improving asset turn, reducing working capital, optimising vehicle fleets and utilisation, controlling interest costs, containing expenses and exceeding customer expectations.

Empowerment and transformation will continue to be addressed and employee value-creation initiatives, particularly skills development and retention, will be emphasised. Careful consideration is given to fleet selection, allowing the provision of hybrid and other low-emission vehicles to customers. Avis Rent a Car South Africa maintained its CarbonNeutral® accreditation for the offset of internal fuel and energy CO2 emissions. Through water collection and recycling facilities at major locations, the business ensures savings of some 75 million litres of water annually.

Motor retail

Southern Africa

Motor Retail Southern Africa operates 43 leading motor vehicle franchise dealerships in South Africa and Botswana. Market share was maintained and the business remains well positioned in the market. A consistent focus on improving asset turn, containing costs, and reducing working capital while focusing on our customers, ensured that the business produced a credible result. This was again supported by an improved contribution from the division’s centralised finance and insurance activities. 51 709 new and used retail units were sold in 2011. NAAMSA reported a new vehicle market of 481 691 units of which 83% represented dealer sales.

Complementing the dealer footprint, Barloworld Fleet Marketing continued to develop strong relationships with key customers who require a range of ownership solutions. In line with our strategy of “Fewer, Bigger, Better” dealerships we continue to invest and maintain well-located, world-class facilities. New dealerships completed during the year include Club Motors Fountains in Pretoria, Barloworld Toyota Stellenbosch and Barloworld GM Zambezi. All new buildings were completed in accordance with the division’s green building guidelines that ensure appropriate sustainable products are used during construction, and lower energy and water consumption over the building’s operating life. Across facilities we monitor energy and water consumption, and are implementing initiatives to reduce our impact on the environment. The roll-out of waterless carwash facilities will continue to reduce the business unit’s water consumption. All waste oil is recycled through accredited third-party service providers.

In partnership with the Maponya Group, Barloworld was awarded Toyota and Volkswagen franchises for the greater Soweto area with trading starting in December 2011.

In the year ahead, the focus will be on growing volumes, improving asset turn, maintaining working capital, controlling interest costs, containing expenses and exceeding customer expectations. All aspects of empowerment and transformation are addressed, as reflected in the scores of the relevant entities. A comprehensive approach to people management is well entrenched. Training programmes supporting overall development include technical skills development, management training and development, and focused programmes to equip customer-facing staff. The division trains some 18% of the industry’s registered motor apprentices.

Australia

The business operates some of the most modern dealership facilities in Australia, in Melbourne and Sydney. We retail new and used passenger and light commercial vehicles, as well as provide parts, servicing and finance and insurance-related products. Barloworld Australia represents Holden, Mercedes- Benz, Smart, Suzuki and Volkswagen. We are the largest Volkswagen dealer in Australia, the largest Holden dealer in Victoria, and one of the largest Mercedes-Benz dealers in Australia.

The decline in the vehicle market was driven by concerns over the global economy and a decrease in consumer spending, driven mainly by increased household costs. Despite the vehicle market decline, the business delivered a significantly improved result over the prior year. An improvement in margins and stronger contributions from our fixed operations assisted in delivering this result. During the year, a Volkswagen commercial franchise was awarded to our dealership in Five Dock, Sydney.

In supporting our approach to environmental sustainability the rainwater harvesting system at our flagship Bayside facility in Melbourne has a storage capacity of some 380 000 litres.

Fleet Services (Leasing)

Avis Fleet Services provides long-term rental and value-added services to operators of passenger and commercial vehicles throughout South Africa and in Botswana, Lesotho, Mozambique, Namibia and Swaziland.

Products and services include the administration of vehicle licensing, maintenance and fuel costs, the acceptance of maintenance and residual value risks, and vehicle sourcing and disposal services.

During the year fleet under finance, maintenance and management contracts grew to a total of 195 788 vehicles from 162 098 vehicles in the prior year. Profitability increased by 3% on the prior year, due to tight controls over working capital, improved maintenance, drop-off profits and further used-car profit improvements.

Despite the depressed economic conditions and the tight rein on credit by major banks, the demand for our products and services remained buoyant, underpinned by companies seeking improvements in fleet efficiency and cost control.

Ex-fleet vehicles remain attractive to consumers and demand during the year was consistent, delivering a contribution above the 2010 level. The operations continue to focus on customer value, with specific attention to offering total fleet solutions. Significant management attention has been devoted to transformation and employee value creation initiatives, particularly skills development and retention.

Robust management of maintenance expenditures and overhead costs remain a key focus area.

Logistics

Vision: To be an international provider of smart supply chain solutions in partnership with leading clients.

Barloworld Logistics’ vision is implemented through strategic partnerships with leading clients, key suppliers, and domain expertise in selected supplychain capabilities.

Through client collaboration, continual improvement and innovation, Barloworld Logistics delivers smart supply chain solutions to customers. These solutions are aligned to drive business strategy and create a competitive advantage for clients. Depending on clients’ requirements, such solutions can be across the supply chain in an integrated manner or components of complete solutions. In each of these supply chain solution areas, we provide the leadership, skills, methodologies, processes and tools necessary to consult, design, implement, operate or manage the solutions.

Barloworld Logistics is one of the leading logistics and supply chain management businesses in southern Africa with complementary operations in Hong Kong, the United Arab Emirates, Iberia, Germany and the United Kingdom employing some 2 300 staff across 87 offices. The integrated logistics solution offerings include supply chain consulting and design, inventory management solutions, transportation management services, warehousing and distribution design and management, freight forwarding and clearing and supply chain software and planning.

Revenue from the southern African operations increased 10% year-on-year on the back of increased volumes from Barloworld Equipment and additional revenue earned from the ramp up of two major contracts. Some operations were affected by lower volumes due to market conditions, but this was offset by better performance elsewhere. Operating margins were in line with the prior year.

Revenue from European, Middle East and Asian operations was 20% lower than the prior year due to the exit of the African and Asian non-corporate trader business and lower volumes across all regions. Margins, however, improved following the renegotiation of some contracts, the increased capacity utilisation of Dubai warehouses and the cost containment drive implemented during the year.

Barloworld Logistics signed a ten-year outsourced transportation contract with Meadow Feeds, which involves in excess of 160 pieces of transportation equipment. Operations commenced on 1 October 2011. The first distribution centre for Ellerines Holdings Ltd was launched in Boksburg in March 2011. The build and roll-out of the other four regional distribution centres has begun. Further growth opportunities with new and existing clients look promising.

With commercial transport being one of the single biggest sources of carbon emissions in the supply-chain, Barloworld Logistics was inspired to create sustainable road transport solutions. As the first logistics and supply-chain company in South Africa to be accredited by the Road Traffic Management System (RTMS) in the general freight category, Barloworld Logistics continues to lead the way in sustainable solutions. All transport depots are now RTMS accredited and the Green Trailer project has delivered results above expectation. The test rig realises a fuel saving of some 10% (3% higher than projected) which equated to a 66.8-ton reduction in greenhouse gas emissions over the ten-month test period. The green trailer also achieves a 35% reduction in wind drag, which increases the safety and stability of the rig.

European, Middle Eastern and Asian operations have been successfully realigned after the exit of the African and Asian non-corporate trader business. The Sea-Air transport service from the Far East, through Dubai into Europe, is another example of a sustainable supply chain solution. The Sea-Air offering not only reduces costs and increases speed and service for clients but also provides a more carbon-efficient transport mode.

Operations in the United Kingdom and the United States comprise the Supply Chain Software business, which develops and distributes software products used to provide strategic and tactical design and operational execution across supply-chain planning. The business enables client competitiveness by providing supply-chain planning expertise, tools and solutions that optimise network and inventory performance.

Outlook

Trading conditions are expected to remain competitive in the year ahead. We will maintain emphasis on our six strategic focus areas of integrated customer solutions, employees, empowerment and transformation, sustainable development, financial returns and profitable growth. Improving the quality of earnings will remain the focus. Overall, 2012 is expected to yield modest growth. Optimising the inherent synergies and benefits of our South African integrated motor vehicle usage solutions offering remains central to our strategy. Various opportunities to grow our offering within southern Africa will be pursued and implemented.

The car rental operations will focus on rental yields, maintaining high fleet utilisation and optimising their asset base. Additional products and services will be provided to cater for evolving customer demands.

Our southern African motor retail operations will continue their “Fewer, Bigger, Better” strategy, coupled with pursuing efficiencies through the centralisation and co-ordination of common functions, improving asset turn and reducing working capital. Our Australian motor retail operations remain a well-run focused business unit, and are expected to sustain the high levels of profitability.

Fleet services is expected to continue to benefit from current contracts and pursue attractive growth opportunities in various markets. Barloworld Logistics is expected to benefit from recently awarded contracts and increasing activity in the group’s equipment division.

Black economic empowerment in South Africa

The division has a number of significant black economic empowerment partners, these include:

NMI-DSM incorporates the Mercedes-Benz operations in the greater Durban and Pietermaritzburg metropolitan areas in KwaZulu-Natal
PhakisaWorld Fleet Solutions which manages the fleets within the ambit of the South African National Department of Transport
Vuswa Fleet Services which manages the SANPARKS fleet nationally and certain OEM maintenance plans
Sizwe car rental
Barloworld Logistics Africa incorporates the group’s African logistics operations

Awards and recognition
External recognition for the value we create for our stakeholders includes:

Avis Rent a Car Southern Africa

Sunday Times Brands and Branding independent survey: Best Car Rental Brand in South Africa for eighth consecutive year
Superbrands 2009-2010
World Travel Awards 2011: Africa’s Leading Business Car Rental Company
Daily News YOUR CHOICE Awards: Best Car Rental Company
Climate Change Leadership Award: Winner – Private Sector, Corporate Services
Mail & Guardian’s Greening the Future Awards: Special Commendation award as runner-up in the category “Water Care”

NMI-DSM (Black Economic Empowerment Joint Venture)

Mercedes-Benz Umhlanga: Chairman’s Award 2011 – Mercedes-Benz South Africa
Mercedes-Benz Umhlanga: Dealer of the year 2011 – Mercedes-Benz Brand Centre Category
Mitsubishi Motors Umhlanga: Dealer of the year 2011 – Mitsubishi Motors Brand Centre Category
– seventh consecutive year
NMI-DSM Commercial Vehicles Durban: Dealer of the Year 2011 – Freightliner Fuso Brand Centre Category
Garden City Commercial: Dealer of the Year 2011 – Freightliner Fuso Market Centre Category
Garden City Commercial: Best CSI Average Score 2011 – Freightliner Fuso Market Centre Category
Garden City Commercial: Best CSI Average Score 2011 – Mercedes-Benz Commercial Vehicles Market Centre Category

Motor Retail South Africa

Barloworld Fleet Marketing: Toyota SA Status Club – Platinum Award for fifth consecutive year
Audi South Africa: Dealer Group of the Year
Audi South Africa: Dealer of the Year – Audi Centre N1 City
Audi Centre N1 City: 1st in Category 1 – Audi Sophisticated Awards
Audi Centre Cape Town: Runner-up in Category 1 – Audi Sophisticated Awards
Audi Centre N1 City: Runner-up in Category 1 for Sales Manager of the Year – Audi Progressive Awards
Audi Centre Cape Town: 1st in Category 1 for Pre-owned Sales Manager of the Year – Audi Progressive Awards
Audi N1 City: Runner-up in Category 1 for Pre-owned Sales Manager of the Year – Audi Progressive Awards
Audi Centre Bruma: 1st in Category 1 for Parts Manager of the Year – Audi Progressive Awards
Barons Tokai, Barons Durban: Volkswagen Club of Excellence Award
Barons Tokai: Runner-up in Volkswagen New Vehicle Department in Category A
Barons Woodmead: Best Volkswagen New Vehicle Sales Executive in Category A
Barons Durban: Runner-up in Volkswagen Parts Department in Category A
Barloworld GM City Deep Trucks: Isuzu Truck SA Service Excellence – Top Service Department in Large Category
Barloworld GM Zambezi: General Motors Honours Award 2010
Barloworld Toyota Middelburg: Hino Trucks: Pyramid of Excellence – Hino Truck Marketing
Barloworld Toyota Middelburg, Hino Trucks: Hino Quality Service and Environmental Award

Motor Retail Australia

Barloworld Holden Glen Waverly: Holden Grand Masters Award for 2010
Ferntree Gully Holden: Holden Grand Masters Award for 2010

Avis Fleet Services

Professional Management Review (PMR): Diamond Arrow Award: Best Overall Fleet Management Company in South Africa – fifth consecutive year
Professional Management Review (PMR): Diamond Arrow Award: Best Fleet Management Company in the Private Sector in South Africa
Professional Management Review (PMR): Diamond Arrow Award: Best Fleet Management Company in the Public Sector in South Africa
Professional Management Review (PMR): Golden Arrow Award: Best Fleet Management Company in Namibia
Professional Management Review (PMR): Diamond Arrow Award: Leaders and Achievers in Mozambique
Avis Fleet Services Mozambique: Transportes Lalgy Lda Award
Toyota SA Status Club and Hino Truck Club – Platinum Award Winner

Barloworld Logistics

Logistics Achiever Awards 2011: Gold Award for supply chain excellence – Zambia Sugar and Barloworld Logistics

An element of sustainable development: A holistic approach to managing our environmental footprint
We understand that our integrated vehicle-usage solutions and logistics solutions consume fossil fuels and have related greenhouse gas emissions.

As part of our commitment to environmental stewardship and mitigating the negative environmental impact of our activities and customer solutions, we have adopted a comprehensive approach to managing our environmental footprint.

As part of our commitment to environmental stewardship and mitigating the negative environmental impact of our activities and customer solutions, we have adopted a comprehensive approach to managing our environmental footprint.

Our integrated approach includes the following primary initiatives:

Entrenching sustainable development in our strategic objectives and ongoing operations
Representing leading motor vehicle manufacturers and principals
Providing motor vehicle usage solutions with leading products and services
Introducing environmentally friendly vehicles, such as Toyota Prius and Honda Jazz hybrids, into the rental fleet to reduce emissions
Providing logistics and supply-chain management solutions which reduce negative impacts on the environment (Green-Trailer, CINO, CAST-CO2, Green World initiative)
Measuring and reporting internal fuel and electricity consumption, and resulting CO2e
Aligning with the group energy and emission efficiency improvement targets
Introducing programmes to reduce energy consumption with the associated benefits, including cost savings. These include energy audits; installing PowerWatch technology to lower electricity consumption; installing motion sensors in lighting systems in certain areas
Involving employees in voluntary programmes such as appointing ‘green champions’ to drive recycling and energy-reduction initiatives. These initiatives will be supported by internal awareness campaigns rolled out to all staff
Responsible disposal of waste generated by operations through recognised contractors. This includes recycling all replaced oil and glass and electronic waste
Designing and constructing new buildings as sustainably as possible, using recycled material, energy and water-efficient solutions. All new developments comply with legislation
Focus on recycling and harvesting water generally and experimenting with various innovative solutions such as the waterless car-wash facility in our motor retail business. Our Avis car rental operations save 75 million litres of water per annum.
In 2009 Avis bought carbon credits to offset 11 000 tons of annual carbon emissions over a three-year period, specifically from its internal fuel and energy use. Avis has thus achieved CarbonNeutral® accreditation status. We have extended this initiative for another two years, to the end of the 2013 financial year.

The Avis Greenprint.
Leaving a positive mark on the world.