Supplier Social Assessment: 414-1 to 414-2

  • Management Approach

    We look for principals and suppliers who demonstrate strong values and commit to the ethical principles outlined in the Barloworld Code of Conduct.

    Teamwork, one of our core values includes ‘We build outstanding long-term relationships with our principals, suppliers and customers’….. ‘We look for principals and suppliers who demonstrate strong values and commit to the ethical principles outlined in the Barloworld Code of Conduct. We expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights. …’.

    An internal review has been conducted on all our major principals and Original Equipment Manufacturers for risks relating to their negative impact on society, in addition to other aspects. These are significant suppliers and 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.

    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 rigorous assessment 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, in excess of 5 300 suppliers (32% of total active suppliers) 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 states:

    “The supplier or service provider may not directly or indirectly use any form of forced or compulsory labour or child labour. The supplier or service provider must not employ children under the age of 15 (or higher age if local law sets a higher limit). Where applicable, the supplier or service provider must ensure that all employees are permitted to participate in collective bargaining, without fear of intimidation or reprisal and be free to choose whether or not to do so. The supplier or service provider should promote diversity and must not discriminate in employment and occupation on such grounds as race, religion, disability, national origin, colour, gender, sexual orientation, age and/or physical or mental disability, or other unfair discrimination.”

    Other aspects covered in the supplier and service provider code of conduct include:

    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.

    Improper payments, fraud, corruption and bribery:
    The supplier or service provider must comply with local legislation on fraud, corruption and bribery as well as international anti-bribery legislation, where applicable to its business. The supplier or service provider must not offer, demand or accept a bribe, payment, gift, benefit or other service that seeks to influence the behaviour or conduct of others or seeks to be influenced.

  • 414-1 - New suppliers that were screened using social criteria

    The reporting organization shall report the following information:
    a. Percentage of new suppliers that were screened using social 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 and none were assessed as high risk on labour practices or corporate citizenship criteria. These suppliers accounted for some 62% of our procurement spend in the group for the 2020 financial period.

    In excess of 5 300 suppliers (32% of total active suppliers) have signed the supplier and service provider code of conduct that incorporates a voluntary undertaking to uphold labour laws and regulations and adhere to high ethical standards related to health and safety practices as well as human rights. There are ongoing efforts to have more suppliers sign the Supplier Code of Conduct.

  • 414-2 - Negative social impacts in the supply chain and actions taken

    The reporting organization shall report the following information:

    1. Number of suppliers assessed for social impacts.
    2. Number of suppliers identified as having significant actual and potential negative social impacts.
    3. Significant actual and potential negative social impacts identified in the supply chain.
    4. Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment.
    5. Percentage of suppliers identified as having significant actual and potential negative social 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 been conducted on all our major principals and original equipment manufacturers for risks relating to human rights, corporate citizenship or labour practices, and there were no adverse findings and none  have a high risk rating.

    These suppliers account for some 62% of our procurement spend in the group for the 2020 financial period.

    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 assessment 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, in excess of 5 300 suppliers (32% of total active suppliers) 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 prohibits the use of compulsory or child labour as well as unfair discrimination, and requires freedom of association and the right to collective bargaining. It also addresses health and safety aspects in the workplace.

    There are ongoing efforts to have more suppliers sign the Supplier Code of Conduct.