Energy: 302-1 to 302-5

  • Management Approach

    We also strive to provide our customers with solutions that assist them to achieve their sustainable development, including energy and climate change, objectives. While no specific targets are set in this regard as customers’ requirements vary, this however forms part of our mitigation and adaptation approach in transitioning to lower carbon economies.

    Barloworld is committed to responsible energy consumption with group aspirational 2020 targets set.

    The aspirational energy efficiency improvement target set in 2016, aimed to improve non-renewable energy efficiency by 10% (using revenue as a proxy of activity) over a 2015 baseline by FYE2020. Despite a 20% reduction in absolute non-renewable energy consumption over a 2015 baseline, we remained 46% behind our FY2020 aspirational efficiency target.

    Such a target benefits group by mitigating rapidly rising costs, particularly electricity in South Africa, (including related ‘pass-through’ costs), organisational resilience and the associated need to reduce greenhouse gas emissions. These are entrenched in the group’s strategic planning processes and operations.

    The group focuses on improving the efficiency of non-renewable energy consumption, mainly in the form of electricity and fuel for vehicles. In terms of the former, the group’s divisions and their operations have a range of initiatives to reduce consumption spanning timers on light switchers to more energy efficient building designs– in short, any measure that will reduce consumption and cost.

    Installed solar photovoltaic capacity as at the end of the period was in excess of 1 000 kW (peak), however not all installations were commissioned due to COVID-19 related delays.

    These installations have contributed to the generation of some 550 MWh of renewable energy during the period and translated into an avoidance of some 500 tCO2e resulting from grid-electricity and monetary savings in excess of R0.5m for the financial period. The installations are sufficient to cater for the campus’ baseloads. Similar installations are anticipated for selected facilities in the future. Switching to renewable energy reduces reliance and pressure on the electricity grid and improves operational resilience. In terms of fuel consumption, vehicles are recent models with the latest engines designed to use less fuel and emit less pollutants. At an operational level, the efficiency of related fleets are monitored against the most appropriate consumption drivers and indicators.

    Regular maintenance ensures that engines run optimally and consume less fuel. The group also sources products from its OEMs with the latest fuel saving technologies.

    Divisions utilise the skills and resources within their respective operations to assist in identifying and maximising efficiency opportunities internally within the group.

    New building developments are conscious of the need to reduce energy consumption. The recently completed Automotive and Logistics head office building is a five green star rating. Features include solar photovoltaic energy (120 kW(peak)).

    The above are examples of our adaptation and mitigation strategies aimed at transitioning to lower carbon economies.

  • 302-1 - Energy consumption within the organization

    The reporting organization shall report the following information:
    1. Total fuel consumption within the organization from non-renewable sources, in joules or multiples, and including fuel types used.
    2. Total fuel consumption within the organization from renewable sources, in joules or multiples, and including fuel types used.
    3. In joules, watt-hours or multiples, the total:
      1. electricity consumption
      2. heating consumption
      3. cooling consumption
      4. steam consumption
    4. In joules, watt-hours or multiples, the total:
      1. electricity sold
      2. heating sold
      3. cooling sold
      4. steam sold
    5. Total energy consumption within the organization, in joules or multiples.
    6. Standards, methodologies, assumptions, and/or calculation tools used.
    7. Source of the conversion factors used.
    Integrated Report:
    Value creation through the six capitals and trade-offs- Natural CapitalFINANCIAL AND NON- FINANCIAL KEY PERFORMANCE INDICATORS - NATURAL CAPITALEquipment southern AfricaEquipment EurasiaAutomotiveLogisticsCorporateResponsible Corporate - Sustainability - Energy and EmissionsAssurance report for selected non-financial indicatorsSalient features

    Consumption of energy derived from non-renewable resources such as coal, petrol, and diesel drive the group’s greenhouse gas emissions.

    Aside from the impact energy consumption has on the climate, the availability and cost of energy warrant our significant efforts in order to reduce consumption across the board against a business-as-usual scenario.

    Consumption by primary energy source is reflected in the table below:

    Consumption by energy source 2020  2019  2018 
    Direct Energy      
    Diesel (KL)  50 317   62 255   64 250 
    Petrol (KL)         4 941          7 184          7 061 
    Heavy Oil (KL)                -                  0                 - 
    LPG (Tonnes)               17                17                16 
    CNG/LNG (000 m3)                -                  3                10 
    Indirect Energy Sources      
    Grid electricity (MWh)       51 982        67 109        73 311 


    The table above reflects a 19% decrease in diesel consumption and a 31% decrease in petrol consumption over prior year. Consumption of LPG decreased by 2%, no CNG was consumed and grid electricity decreased by 23% over prior year. Group non-renewable energy consumption was 20% lower over 2019 as per table below:

    Non-renewable energy^ (GJ) by Division (Direct and Indirect)  2020  2019  2018 
    Equipment and Handling  235 478  256 955  253 841 
      Equipment 235 478  256 772  253 236 
      Handling -  183  605 
    Automotive and Logistics  2 031 573  2 594 588  2 691 121 
      Automotive 290 952  416 270  421 293 
      Logistics  1 740 622  2 178 318  2 269 827 
    Corporate  1 534  1 842  2 735 
    Barloworld Group  2 268 586  2 853 385  2 947 697 

    Given the nature of our operations, diesel remained the major source of energy consumption, accounting for some 84% of group energy consumption.

    Non-renewable energy^ (GJ) by Energy Source  2020  2019  2018 
    Direct Energy         
    Diesel  1 912 648  2 366 421  2 442 452 
    Petrol  168 028  244 481  240 216 
    Other*  774  892  1 108 
    Indirect Energy Sources        
    Grid electricity  187 136  241 591  263 921 
    Barloworld Group  2 268 586  2 853 385  2 947 697 

    ^ Excludes energy from rental fleets
    * Heavy oil, LPG and CNG

    Energy (GJ) is calculated by multiplying the consumption volume by the relevant energy conversion factor based on fuel type and region. See: Barloworld Energy and Emission conversion factors including respective source is available on our website.

    In addition to the 300 kW (peak) solar photovoltaic installation implemented at Equipment’s Isando operations in FY16, additional capacity of 400kWp installed during the current period; one at our Boksburg Power facility (200kWp) and one at our BRC facility (200kWp). To date, in excess of 1000 kW(peak) of solar photovoltaic capacity has been installed across the group. Not all installations have yet been commissioned due to delays stemming from COVID-19 related measures and impacts.

    These installations have contributed to the generation of some 550 MWh of renewable energy during the period and translated into an avoidance of in excess of 500 tCO2e resulting from grid-electricity and a monetary savings of some R0.5m for the financial period. Similar installations are anticipated for selected facilities in the future.

    New building developments are conscious of the need to reduce energy consumption. The recently completed Automotive and Logistics head office building (Irene, South Africa) is a five green star rating. Features include solar photovoltaic energy (120 kW(peak).

    Switching to renewable energy reduces reliance and pressure on the electricity grid and improves operational resilience. The current consumption of renewable energy accounts for 0.1% (2019: 0.1%) of total indirect energy consumption (energy (GJ) sourced from grid electricity plus renewable electricity).

    The group did set an aspirational target to generate and consume renewable energy of 2 000 MWh or more per annum by FYE2020. Despite progress being made in this regard, we remain 72% behind our aspirational target. Appropriate targets are under consideration for the strategic period beyond 2020, which will drive focus on improving non-renewable energy efficiency and drive switching to renewable energy sources. Such targets will be communicated in due course.

    Non-Renewable Energy (GJ) by region  2020  2019  2018 
    South Africa  2 141 523  2 700 063  2 795 321 
    Rest of Africa and Middle East  74 797  102 249  105 568 
    Eurasia  52 265  51 073  46 808 
    Barloworld Group  2 268 586  2 853 385  2 947 697 

  • 302-2 - Energy consumption outside of the organization

    The reporting organization shall report the following information:
    1. Energy consumption outside of the organization, in joules or multiples.
    2. Standards, methodologies, assumptions, and/or calculation tools used.
    3. Source of the conversion factors used.
    Integrated Report:
    Value creation through the six capitals and trade-offs- Natural CapitalFINANCIAL AND NON-FINANCIAL KEY PERFORMANCE INDICATORS - NATURAL CAPITALEquipment southern AfricaEquipment EurasiaAutomotiveLogisticsCorporateResponsible Corporate - Sustainability - Energy and EmissionsAssurance report for selected non-financial indicatorsSalient features

    While the group does not report the energy consumed outside the organization, it does report certain scope 3 emissions which are related to such energy consumption.

    The group is currently gathering this information as we remain mindful of the impact this has on the communities in which we operate. We are refining these reporting processes and we will consider reporting this externally in due course.

    Nonetheless, we appreciate the impact our operations have on the external environment, and in this regard we currently report scope 3 emissions relating to our business air travel (4 907 tCO2e). Business air travel is calculated based on average distance per long, medium and short flight multiplied by the respective conversion factor.

    Car Rental (Avis Budget) South Africa’s customer rental emissions generated are classified as scope 3 emissions and have been disclosed from our 2010 financial year. Car Rental South Africa’s scope 3 emissions have been included in the scope for the limited assurance review conducted by PWC. Certain control weaknesses in the Avis Budget South African scope 3 customer rental fleet emissions were noted by PWC. The control weaknesses were considered material and as such PWC issued a qualification in their Assurance statement over selected non-financial indicators. Management have taken a decision not to disclose the emissions figure until the issue is resolved.

  • 302-3 - Energy intensity

    The reporting organization shall report the following information:
    1. Energy intensity ratio for the organization.
    2. Organization-specific metric (the denominator) chosen to calculate the ratio.
    3. Types of energy included in the intensity ratio; whether fuel, electricity, heating, cooling, steam, or all.
    4. Whether the ratio uses energy consumption within the organization, outside of it, or both.
    Integrated Report:
    Value creation through the six capitals and trade-offs - Natural CapitalFINANCIAL AND NON-FINANCIAL KEY PERFORMANCE INDICATORS - NATURAL CAPITALResponsible Corporate - Sustainability - Energy and Emissions - Energy Intensity

    It may not always be possible or practical to reduce absolute energy consumption year-on-year given the correlation between business activity and energy consumption.

    To mitigate this, Barloworld measures energy consumption against activity levels (using revenue as a proxy for activity), resulting in an intensity indicator.

    Despite the adoption of an intensity metric for energy, operations within the group have varying energy intensity levels dependent on the nature of their respective activities. The table below is a function of non-renewable energy consumption (GJ) and activity (using R million revenue as a proxy).

    The decreased intensity in 2020 against 2019 indicates less (-4%) energy was consumed in generating R1 million revenue than in 2019.

    Non-renewable energy Intensity by Division (GJ* per R1 million revenue)  2020  2019  2018 
    Equipment and Handling  8.7  9.6  9.2 
         Equipment  8.7  9.6  9.2 
         Handling  -  6.6  5.3 
    Automotive and Logistics  81.1  77.3  75.3 
         Automotive  13.9  14.7  14.1 
         Logistics  423.2  420.6  383.1 
    Barloworld Group  45.7  47.4  46.5 
    *Excludes rental fleet emissions

    Non-renewable energy included in the above intensity table includes direct and indirect energy which includes fuel (petrol, diesel, LPG, CNG and Heavy oil) and grid electricity consumed within the organisation.

    Barloworld Energy and Emission conversion factors including respective source is available on the Barloworld website.

  • 302-4 - Reduction of energy consumption

    The reporting organization shall report the following information:
    1. Amount of reductions in energy consumption achieved as a direct result of conservation and efficiency initiatives, in joules or multiples.
    2. Types of energy included in the reductions; whether fuel, electricity, heating, cooling, steam, or all.
    3. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.
    4. Standards, methodologies, assumptions, and/or calculation tools used.
    Integrated Report:
    Value creation through the six capitals and trade-offs - Natural CapitalResponsible Corporate - Sustainability - Energy and Emissions - Renewable energyResponsible Corporate - Sustainability - AUTOMOTIVE AND LOGISTICS HEAD OFFICEResponsible Corporate - Sustainability - FOCUSING ON THE EFFICIENT USE OF ENERGY

    The group’s principal source of indirect non-renewable energy is electricity sourced from the grid, which accounts for some 8% of energy consumption and 25% of tCO2e emissions in 2020.

    Our commitment to improving energy efficiency in terms of fossil fuels and the resulting GHG emissions is reflected in being an early signatory to South Africa’s Energy Efficiency Accord and the South African National Business Initiative’s (NBI) Energy Efficiency Leadership Network’s (EELN) Energy Efficiency Pledge.

    Energy conservation and efficiency initiatives are driven by the group’s aspirational target of a 10% efficiency improvement in our non-renewable energy consumption by the end of our 2020 financial year, off a 2015 baseline and against a business-as-usual scenario. At the end of FY2020, Barloworld was 46% behind the aspirational efficiency improvement target. Despite not meeting the efficiency improvement target, absolute non-renewable energy consumption decreased by 20% against the 2015 baseline.

    Initiatives in place to conserve energy and contribute to such savings include:

    • Entrenching sustainable development in group strategy.
    • Setting targets and entrenching integrated reporting that includes efficient energy consumption.
    • Focused communication programmes which include the principle that the cumulative impact of small changes become significant.
    • Inclusion of ‘Sustainability’ to its core Values, which recognises that it is central to our value creation approach and emphasises the individual responsibility of all in Barloworld for this aspect. Included under Sustainability is ‘We focus on environmental responsibility and preventing waste’.
    • Barloworld Logistics:
      • Across four major sites, a cumulative year-on-year saving of some 400 MWh was achieved through the installation of energy saving programme which included LED lighting, daylight and motion sensors, heat pump installations, solar geyser installations, disconnecting unnecessary geysers and employee awareness programmes.
      • The division operates 83 Smart (Performance Based Standards) trucks which is some 30% of the units in South Africa. The new Smart trucks have greater stability at highway speed, improved manoeuvrability, can carry higher loads while decreasing the hazard potential and use on-board instrumentation to measure loading and detect road-related risks. They are safer and more economical to own and operate. These trucks are designed using sophisticated computer software which uses simulations to improve the vehicle’s response to a range of situations and emergencies that can occur on the road. The current fleet of Barloworld Transport Smart Trucks generate on average 31% less road damage per ton of payload transported and have seen fuel savings as high as 25% per ton of payload transported. Over the reporting period, the following was achieved:
        • Estimated Trips saved: 9 002
        • Estimated kilometres saved: in excess of 3 000 000 kms
        • Estimated reduction in Diesel consumption: 1.5 Million Litres
        • Estimated emissions saved: in excess of 4 200 tCO2e
      • In addition to driver training and specialist monitoring, a specialist fuel management team and system produce real time, weekly and monthly fuel consumption data which is used to optimise routes, driver behaviour, vehicle specification choices.
    • Barloworld Automotive;
      • Various energy saving initiatives have been implemented during the reporting period. These initiatives include: Efficient HVAC and lighting, motion sensors, and heat pumps. Examples of savings achieved include the lighting upgrade at Barloworld Isuzu in Johannesburg and the Office upgrade at an Avis Budget facility in Pretoria, in which the cumulative savings to date is some 327 MWh of electricity (estimated emissions savings of 337 tCO2e)
      • All new vehicles sold incorporate the Vehicle Manufacturers’ latest environmental technology developments and improvements.
      • Car rental fleets generally comprise of vehicles less than 12 months old and hence have the most up to date and efficient propulsion systems etc.
      • Car rental has introduced limited electric vehicles onto its luxury fleet.
      • Car rental introduced Avis Safe Drive, a downloadable app to track and monitor driver behaviour. Customers are rewarded for good driving and rewards are determined by drivers’ behaviour. Avis Safe Drive is also being rolled out for Chauffer Drive.
      • All SMD delivery trucks incorporate the Vehicle Manufacturers’ latest environmental technology developments and improvements. The business in addition utilises route planning to minimise fuel usage. Vehicles are regularly maintained.
      • Some Automotive dealerships and Logistics warehousing include energy efficiency technology, adopting various Energy Management Systems and ISO certifications in certain operations which include procurement management, measurement, account verification initiatives, load management, energy efficiency initiatives, alternate energy projects, monitoring, rebates, reporting and communication and training.
      • Membership of the Green Building Council of South Africa, through our Automotive division, has re-enforced our ‘ green’ buildings initiative for new buildings which have resulted in:
        • ‘Green’ buildings initiative for existing buildings that includes
        • Conducting energy audits
        • Installing more efficient lighting, heating, cooling and ventilation systems
        • Installing motion sensors on lights and air conditioning systems
        • Timing switches on compressors and other appropriate electrical equipment
        • Use of geyser blankets and reduction of geyser temperatures
        • Resetting wash bay blowers in car rental operations to optimise time taken to dry vehicles
        • The new Automotive and Logistics head Office has a five-star green building rating and incorporates resource conservations systems such as thermal storage and solar panels.
    • Barloworld Equipment Southern Africa; energy savings initiative savings initiatives in equipment Southern Africa included:
      • Continue to drive the switch to renewable energy sources through solar photovoltaic installations.
      • During 2019/20 financial year, BWE southern Africa installed an additional capacity in:
        • Boksburg Remanufacture Centre (BRC) facility of 400kW
        • Kathu 55 kW
        • Bloemfontein 110 kW.
        • The total year to date savings of more than R0.5 million was realised since the initial installation. Reductions were estimated using internal procedures of reporting and verifying data received from both internal and external sources.
        • In total, Equipment southern African has Solar PV capacity in excess of 1 000 KW(peak) which could potentially avoid 1 000 MWh of grid electricity and in excess of 1 000 tCO2e annually. Some of the installations will be commissioned during FY2021 due to COVID-19 related delays.
        • Actual generation and consumption during the financial period was some 550 MWh of renewable energy which translated into an avoidance of in excess of 550 tCO2e resulting from grid-electricity and a monetary savings of some R0.5m for the financial period.
      • Fuel saving initiatives include:
        • a 10% reduction in the number of vehicles in the fleet from prior year
        • switching from petrol to higher efficiency diesel vehicles
        • advanced driver training programme
        • Reducing engine capacity of vehicles (Switching from 2.4l engine capacity vehicles to 1.0l engine capacity)
        • Monitoring of speeding and weekend usage, fuel spend per driver and missed vehicle services/maintenance
        • Installation of Drive Cams in some 300 vehicles which assist with improvements in driver behaviour
      • Occupancy sensor light installed in some regions
      • Process design, employee behaviour monitoring and environmental awareness training’
    • Barloworld Equipment Russia;
      • VT facilities are new and were constructed utilizing energy efficient designs and “smart office” principals. The company continuously improves behaviour of personnel through energy awareness initiatives aimed at minimizing resource usage and energy efficiency.
      • VT deploys a Green Office campaign at all branches. As part of this initiative, branch offices are rewarded for meeting energy consumption reduction targets, and for deploying energy efficient technologies and behaviours.
    • General
      • Reduced air travel and increased use of video conferencing.
      • Reduce business travel and the introduction of lower engine capacities.
      • In 2014, comprehensive energy audits were conducted at our South African sites as part of the Private Sector Energy Efficiency (PSEE) programme, rolled out by the National Business Initiative (NBI). Identified energy efficiency opportunities identified at the sample of locations were replicated across other sites. Relevant identified opportunities were factored into the strategic planning process when setting energy and emissions efficiency targets in FY15.

    The table below reflects our grid electricity consumption in absolute terms:

    Grid Electricity (MWh)  2020  2019  2018 
    Equipment and Handling  17 993  19 202  18 571 
       Equipment  17 993  19 195  18 544 
       Handling  -  7  27 
    Automotive and Logistics  33 641  47 485  54 121 
       Automotive  24 681  32 688  34 564 
       Logistics  8 960  14 797  19 557 
    Corporate  349  422  620 
    Barloworld Group  51 982  67 109  73 311 

    The above tables indicate that absolute grid electricity consumption is down 23% over prior year and the table below indicates grid electricity intensity is down 6% over the same period.

    Electricity intensities can be calculated using grid electricity consumption and revenue:

    Grid electricity Intensity (MWh per R1 million revenue)  2020  2019  2018 
    Barloworld Group  1.05  1.11  1.16 

    The table below reflects energy consumption by source:

    Non-renewable energy^ (GJ) by Energy Source  2020  2019  2018 
    Direct Energy          
    Diesel  1 912 648  2 366 421   2 442 452  
    Petrol  168 028  244 481   240 216  
    Other*  774  892   1 108  
    Indirect Energy Sources          
    Grid electricity  187 136  241 591   263 921  
    Barloworld Group  2 268 586  2 853 385  2 947 697 

    ^ Excludes energy from rental fleets
    * Heavy oil, LPG and CNG

    The table below reflects renewable energy consumption:

    Renewable Electricity (MWh)  2020  2019  2018 
    Equipment southern Africa  538  580  932 
    Logistics  18  18  18 
    Barloworld Group  556  598  950 

  • 302-5 - Reductions in energy requirements of products and services

    The reporting organization shall report the following information:
    1. Reductions in energy requirements of sold products and services achieved during the reporting period, in joules or multiples.
    2. Basis for calculating reductions in energy consumption, such as base year or baseline, including the rationale for choosing it.
    3. Standards, methodologies, assumptions, and/or calculation tools used.
    Integrated Report:
    Value creation through the six capitals and trade-offs - Natural CapitalResponsible Corporate - Sustainability - FOCUSING ON THE EFFICIENT USE OF ENERGY

    Apart from its logistics operations, Barloworld represents global original equipment manufacturers (OEMs). The group’s direct environmental impacts are therefore quite limited since it does not manufacture any of these products.

    As a result, limiting the environmental impacts of its products and services is achieved primarily through technological and behavioural interventions designed to limit the use of natural resources by the company. In terms of the former, the group strives to provide customer solutions that incorporate the latest technological advances to use fuel optimally and emit fewer pollutants.

    Its customers are advised of these advances, and encouraged to use equipment in a way that further reduces their impact. The group maintains regular contact with its OEMs so that it is appraised of the technological advances available and can pass this information on to customers.

    The Automotive division’s most significant products that are reclaimed are oil and lubricants. Generally, the ferrous material in motor vehicles can be recycled. However, this is not part of the vehicle leasing, motor retail or car rental operations business model. Tyres may also be recycled or used as fuel. Glass from broken or old windscreens can be recycled.

    The only substantial product that is recycled is oil which, given its value, is not a material percentage of products sold (by value).

    Barloworld uses technological advances in the products and services it provides to limit environmental impacts, particularly energy consumption and emissions. Many of the Original Equipment Manufacturers (OEMs) we represent are grappling with the issue and innovating continually.

    Specific initiatives include:

    Equipment

    Our main principal, Caterpillar has a significant R&D program whereby they continually strive to improve energy efficiency in their products and continue to reduce emissions from their clean diesel engines while maintaining fuel efficiency. The new generation excavators offer up to 25% in fuel efficiency. Caterpillar are also building on their experience with bio diesel and the next generation of bio fuels to reduce GHG emissions and fossil fuel consumption.

    The Caterpillar 794 AC electric drive truck boosts many features, including fuel efficiencies resulting in reduced emissions and are built to be rebuilt through component rebuild in mind extending product lifecycles.

    For more see: https://www.cat.com/en_US/products/new/equipment/off-highway-trucks/mining-trucks/1000021630.html

    Automotive

    • Leading principals in our motor retail operations continue to develop and introduce energy-efficient, low-emission vehicles.
    • Car rental provides eco-driving tips on mirror hangers in every vehicle. Carbon emissions from rentals are recorded on every invoice. Monthly carbon emission reports are sent to corporate customers, making them aware of emissions resulting from their corporate rentals.
    • All new vehicles sold incorporate the Vehicle Manufacturers’ latest environmental technology developments and improvements.
    • Car rental fleets generally comprise of vehicles less than 12 months old and hence have the most up to date and efficient propulsion systems etc., resulting in overall energy and emissions efficiency.
    • Car rental maintains a limited number of electric vehicles on its luxury fleet.
    • Car rental introduced Avis Safe Drive, a downloadable app to track and monitor driver behaviour. Customers are rewarded for good driving and rewards are determined by drivers’ behaviour. Avis Safe Drive is also being rolled out for Chauffer Drive.
    • All Avis Fleet company vehicles fuel usage monitored through the Intelligent Fuel Management product to ensure any inefficiencies resulting in excessive fuel usage are identified and addressed.
    • Avis Fleet has introduced their Driver 360 Scorecard that measures telematics data, road risk behaviour and fuel data to arrive at a combined score which is used to manage driver behaviour, vehicle wear and tear and fuel consumption.
    • Electric vehicles for specific Avis Fleet customers
    • All SMD delivery trucks incorporate the Vehicle Manufacturers’ latest environmental technology developments and improvements. The business in addition utilises route planning to minimise fuel usage. Vehicles are regularly maintained
    • Clean vehicles are a core component of the customer offering but more efficient use of water has significant economic and environmental benefits while maintaining customer service levels.

    Logistics
    Barloworld Logistics offers a range of supply-chain optimisation products, including energy-efficient transport solutions that reduce carbon footprints. These assist clients reduce their carbon emissions through our operational excellence (OE) projects, reducing electricity, water and waste in most of our facilities.

    We have a supplier management programme called ‘Greenworld’ which measures and monitors our suppliers’ carbon footprints in line with industry best practice. Amongst other things, for Barloworld Transport this translates into reducing our impact on the environment through continual cognisance of the need to minimise our footprint in terms of carbon emissions, use of natural resources and impact on the currently overburdened infrastructure, when developing our business strategies and when innovating and providing solutions for our customers..

    Examples of such products and services that assist customers in achieving their sustainability objectives and driving efficiency include:

    • One of the projects we currently have in place to reduce the fuel consumption of our fleet is the performance based standard vehicles that are operating within our Barloworld Transport fleet.
      • The division operates 83 Smart (Performance Based Standards) trucks which is some 30% of the units in South Africa. The new Smart trucks have greater stability at highway speed, improved manoeuvrability, can carry higher loads while decreasing the hazard potential and use on-board instrumentation to measure loading and detect road-related risks. They are safer and more economical to own and operate. These trucks are designed using sophisticated computer software which uses simulations to improve the vehicle’s response to a range of situations and emergencies that can occur on the road. The current fleet of Barloworld Transport Smart Trucks generate on average 31% less road damage per ton of payload transported and have seen fuel savings as high as 25% per ton of payload transported. Over the reporting period, the following was achieved:
        • Trips saved: 9 002
        • Estimated kilometres saved: in excess of 3 000 000 kms
        • Estimated reduction in Diesel consumption: 1.5 Million Litres
        • Estimated emissions saved: in excess of 4 200 tCO2e
      • Barloworld Transport are breaking new ground for a generation of Smart Trucks with innovative features that will improve the overall performance of the transport industry while ensuring safety and efficiency standards are continually improved. The design of the vehicle will focus on performance aspects rather than the conventional dimensional restrictions governed by the Standard National Road Traffic Act (NRTA).
      • The new Smart trucks have greater stability at highway speed, improved manoeuvrability, can carry higher loads while decreasing the hazard potential and use on-board instrumentation to measure loading and detect road-related risks.
      • They are safer and more economical to own and operate. These trucks are designed using sophisticated computer software which uses simulations to improve the vehicle’s response to a range of situations and emergencies that can occur on the road. The current fleet of Barloworld Transport Smart Trucks generate on average 31% less road damage per ton of payload transported and have seen fuel savings as high as 25% per ton of payload transported.
      • By operating Smart Trucks compared to standard vehicles they have moved 32% more payload by doing 10 231 (6.2%) less trips than FY2019
    • The Barloworld Transport Group has been fully certified by the Road Transport Management System (RTMS). RTMS is an industry-led, voluntary self-regulation scheme that encourages all stakeholders in the road logistics value chain to implement strategies that protect the road network, improve road safety and increase productivity in the transport industry. By setting voluntary regulation standards for the heavy vehicle industry, RTMS has:
      • Reduced vehicle overloading
      • Prevented road damage
      • Enhanced the safety of heavy vehicles on our roads
      • Promoted truck drivers’ health through wellness initiatives
      • Improved efficiencies in various industry supply chains
      • Promoted a road safety mind-set within road transport companies
    • A further benefit of RTMS certification is that it allows us to participate in the Smart Truck demonstration project. Smart Trucks are designed on performance characteristics and not on prescriptive limits as per the current road traffic act.
      • Smart trucks provide improved stability, reduce the number of vehicle trips, require fewer trucks on the road, improve transport productivity, reduce carbon emissions and significantly reduce road wear.
      • These vehicles are typically longer and carry heavier loads than other trucks (however, still within the allowable axle mass limits), and may therefore be limited to travelling on dedicated approved routes. The underlying Performance Based Standards on which these trucks are based allows vehicle designers to use the latest innovative design techniques.
    • Improving payload initiatives
      • Our patented Volumax Trailers provide us with 72-pallet tautliners with configurable stacking and racking mechanisms improve loading and unloading, packing and transportation efficiencies across industries and products. Two products traditionally requiring different packing configurations and therefore two vehicles and trips, can now be accommodated on one trailer completing one trip.
    • Green trailers
      • We operate 5 Green Trailers which are superlink-tautliner trailer combinations that significantly reduces the amount of fuel it uses through aerodynamic innovation. A research exercise conducted on the N3 between Johannesburg and Durban showed that when the Green Trailer travelled at a constant speed of between 70 and 80 km/h almost 11% of fuel was saved. This translates into a reduction of some 80 tons of carbon dioxide emissions over a twelve-month period.
    • Fuel consumption
      • For a company travelling approximately 82 million kms during this financial year it is essential that the utmost importance is given to fuel consumption.
      • This incorporates a number of core processes within the business :
      • Selection, induction and training of drivers – we have a stringent application and induction programme through our accredited Barloworld Training Centre and of the licenced truck drivers who apply to us for positions, 92% - 94% do not meet our minimum requirements.
      • Ongoing real time monitoring and training of drivers to develop proactive and defensive drivers, who are measured on defensive driving techniques and benchmarked fuel consumptions. We continually recognise safe driving together with economical driving and are busy developing our in-house SHEQ 360 programme.
      • Our Fuel Management team with input from our MAX system produce real time, weekly and monthly fuel consumption data which is used to optimise routes, driver behaviour, vehicle specification choices.
      • Our fleet of vehicles are further tracked through our on-line fleet exchange programme which tracks the total cost of ownership of each vehicle through its life within Barloworld Transport. This enables our Fleet Management team to optimise vehicle usage considering operational requirements across our business, as well as timing and accurate specification when replacing vehicles

    General

    Barloworld understands the lifecycle implications of its products and solutions. We focus on ensuring maximum and efficient use of the products we sell, rent and lease, including extending their operating lifetime. A relatively high percentage of Caterpillar components are rebuilt, prolonging their life and reducing waste. In 2020, some 79% of total component sales in Equipment southern Africa related to remanufactured and rebuilt components, of which 58% related to Barloworld Equipment remanufactured parts and 42% related to Caterpillar remanufactured parts. Similarly in Equipment Russia, some 11% of total component sales related to remanufactured and rebuilt components, of which all (100%) related to Barloworld Equipment remanufactured parts. Barloworld has invested USD11 million and R240 million in facilities in Russia and South Africa respectively. Additionally, within the Equipment Mongolia, remanufactured and rebuilt parts constitute 99% of total parts sales, of which 21% related to Barloworld remanufactured parts and 79% to Caterpillar remanufactured and rebuilt parts.

    Barloworld’s Automotive and Equipment divisions have business models that enable vehicles, plant and equipment solutions to be provided as new or used and through long- or short-term rental applications. In the Equipment division, this is augmented by a significant component rebuild programme. This business model ensures efficiencies and synergies throughout the lifecycle of vehicles, plant and equipment, and extended useful lives for these products.

    For more information, please refer to the following links: