Supplier Environmental Assessment: 308-1 to 308-2

  • Management Approach

    Our commitment to environmental responsibility is carried into our supply-chain through our Barloworld 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 accounted for the some 62% of our procurement spend in the group for the 2020 financial period. None of these principals have been assessed as high risk for each of the aspects above.

    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. As part of this process, some 5 370 out of around 12 747 active suppliers (32 %) TPSP&S 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.

    Our Logistics operations has a specific audit programme for its transport providers in its supply chain management operations. These audits include Safety, risk, and their Greenworld environmental assessment. To date some 15 high spend transporters have been assessed as part of the Greenworld assessment.

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

    The reporting organization shall report the following information:

    1. Percentage of new suppliers that were screened using environmental criteria.
    Integrated Report:
    Key Risks and Opportunities - Principal and SuppliersDifferentiated Relationships - STAKEHOLDER ENGAGEMENT OVERVIEWDifferentiated relationships - Stakeholder engagement - BUSINESS PARTNERS, PRINCIPALS, SUPPLIERS, INDUSTRY BODIESResponsible Corporate - Sustainability - Supplier Code of Conduct

    No new OEMs were included in the period. The existing OEMs from prior periods were again assessed during the current period. None of these principals were assessed as high risk on environmental criteria. These suppliers account for some 62% of our procurement spend in the group for the 2020 financial period.

    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.

    Identified TPSP&S are expected to sign a Supplier 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 5 370 out of around 12 747 active suppliers (32 %) TPSP&S have signed the Supplier Code of Conduct. Efforts are underway to have more suppliers sign the Supplier Code of Conduct.

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

    The reporting organization shall report the following information:

    1. Number of suppliers assessed for environmental impacts.
    2. Number of suppliers identified as having significant actual and potential negative environmental impacts.
    3. Significant actual and potential negative environmental impacts identified in the supply chain.
    4. Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which improvements were agreed upon as a result of assessment.
    5. 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:
    Key Risks and Opportunities - Principal and SuppliersDifferentiated Relationships - STAKEHOLDER ENGAGEMENT OVERVIEWDifferentiated relationships - Stakeholder engagement - BUSINESS PARTNERS, PRINCIPALS, SUPPLIERS, INDUSTRY BODIESResponsible Corporate - Sustainability - Supplier Code of Conduct

    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 accounted for some 62% of our procurement spend in the group for the 2020 financial period. None of these principals have been assessed as high risk for each of the aspects above.

    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 of 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.

    As part of this process, some 5 370 out of around 12 747 active suppliers (32 %) TPSP&S have signed the 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:

    “The supplier shall 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 recognises its responsibility towards the environment and maintains proper systems to prevent and/or minimise potential hazards.”

    Efforts are underway to have more suppliers sign the Supplier Code of Conduct.