Overview
Central to Barloworld’s Value Based Management (VBM) approach is the belief that sustainability is an interlinking and intricate web of values, practices, attitudes and relationships.

VBM was adopted in 1999 as a philosophy for the way we do business. While the principles contained in the VBM doctrine were already well entrenched in the way Barloworld operates, the VBM framework allowed us to formalise what has essentially always been the “Barloworld Way” of doing business.

Barloworld’s direct stakeholder groups are represented by the four points of a pyramid (see above). At its apex are our shareholders. At its base are our customers, our employees, our principals and suppliers. The pyramid is founded on the social and physical environment in which we operate.

VBM is fundamentally different because it requires that we move beyond the traditional approach of tradeoffs between stakeholders, and search for solutions which add value for all over time.

The relationships between Barloworld and its stakeholders are sustained through in-depth planning and the development of rigorous relationship management programmes and processes. Barloworld’s sustainability strategy ensures that stakeholder relationships are factored into all aspects of the company’s business operations. This is underpinned by the group’s Stakeholder Engagement policy.

Our commitment to Sustainable development is illustrated by identifying it as a one of the group’s six strategic focus areas.

Our 10 Pillars of sustainability underscore the inclusive approach to our activities, as does our adoption of the G3.1 guidelines of the Global Reporting Initiative (GRI G3.1) for reporting.

These highlight our commitment to analyse our sustainability systems to ensure that these are functional, and support a general move towards understanding in greater detail and monitoring the non-financial drivers of Barloworld.

They also ensure sustainable development becomes entrenched in our daily activities.

Our commitment includes:

1. Acknowledging the importance of Climate Change in sustainable development
2. Linking the group to its divisions in terms of key non-financial issues. In other words, understanding what issues are important at a group level, and what issues are important for each division. Divisions are encouraged to determine what these drivers are and in so doing, complement the group’s high-level perspective on sustainability.
3. Examining the broader socio-economic impacts of our business operations.

We understand that the setting of targets and measurement of performance in environmental and social terms assists Barloworld in better defining its sustainability goals and provides the basis for the assessment of progress towards meeting those targets. Furthermore, measuring our sustainability performance makes it possible for social and environmental goals to become entrenched in the overall strategy.

Consistent with this approach, responsibility and accountability rests with the group’s board and Chief Executive Officer, although the day-to-day responsibility is delegated to the divisional Chief Executive Officers and their respective boards.This is underpinned by a balanced scorecard structure.

Aspects of Barloworld’s strategy includes:

1. Natural Resource Protection: We can reduce our consumption of natural resources and in so doing limit the impact of our operations on the environment.
2. Energy: The excessive use of fossil fuel is a global issue. The measurement and optimisation of our current energy consumption, including the concomitant Greenhouse gas emissions, and, the promotion of energy efficient customer solutions and supply chain focus, is a further step towards greater environmental custodianship.

   In this regard we have set an aspirational target of a 12% efficiency improvement in non-renewable fossil fuels by end FY14 off a 2009 baseline year.

3. Climate Change: In actively pursuing our industrial activities, we should not lose sight of the fact that we have a responsibility to make a positive contribution to the slowing down of climate change. We appreciate the link between greenhouse gas emissions (GHG) and climate change. In the circumstances we have also set an aspirational target for the improvement of our emission efficiency similar to that of our aspirational energy target.

In support of the above strategic activities, we commit to:

1. Addressing our activities that contribute to climate change
2. Monitoring and reporting our greenhouse gas emissions
3. Monitoring and reporting the consumption of non-renewable energy and fossil fuel
4. Monitoring and reporting our water consumption: and
5. Extending our Value Based Management principles to support initiatives that are aimed at minimising our contribution to climate change
6. The reduction of occupational injuries and elimination of fatalities.

In line with our commitment to responsible corporate citizenship, we are signatory of the Energy Efficiency Accord with the Department; Mining and Energy in South Africa. We are a member of the South African National Business Initiative’s Energy Efficiency Leadership Network and have signed its Pledge. We are also a signatory of the United Nations Global Compact and we have responded to both the CDP 2011 and Water CDP 2011.

Barloworld is currently a member of the Johannesburg Stock Exchange’s Socially Responsible Investment Index, “Best performer Category” and we have received a Gold Award for inclusion in the South African Carbon Disclosure Leadership Index 2011.