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Environmental aspects

 

Overview

  Barloworld is mindful of the environmental impact of its activities and the consequences these have on climate change. The group’s commercial activities are generally not environmentally aggressive however, Barloworld understands the negative environmental impact of the products and customer solutions it provides. Nonetheless, a group environmental policy is in place and relevant processes are being implemented across the group to reduce the negative consequences of its activities and to ensure that all operations are conducted in an environmentally responsible manner. Priority areas for the group include: natural resource protection, optimisation of energy consumption and making a positive contribution towards slowing climate change. It is understood that the setting of targets and the measurement of progress toward such targets is an integral part of this commitment. As part of the GRI reporting framework, measurement of certain environmental aspects has been a feature of the group’s approach. Four operations have achieved an ISO 14001 rating whilst the remainder strive to achieve the standards reflected in the Barloworld Good Practice Guidelines on Environmental Management for Non-ISO Certified Operations. Certified operations are both Avis and Budget car rental operations in Norway and Sweden. Barloworld business units operate under increasingly strict compliance regulations which include European Union and American standards as well as Scandinavian and Australian legislation. Standards in southern Africa and South Africa in particular are being raised.
   
 

Avis supports the environment

 

In a few years young children at Thuthuka Primary School in Tembisa will be able to play in the shade of 75 indigenous trees. The trees were planted by Avis Rent a Car Southern Africa’s staff as part of the car rental company’s “Avis Cares” initiative, which focuses on people and environmental issues. The initiative is also part of Avis’ promise to plant
a tree for every Toyota Prius rented through Avis since its launch last year.

This is part of an initiative that includes 225 trees to be planted at underprivileged schools and communities and was conducted in conjunction with one of Avis’ developmental partners, Food and Trees for Africa. They are a public greening initiative that help establish sustainable natural resources that provide food security for poverty-stricken
people and contributes to the greening of marginalised communities.

Avis Rent a Car Southern Africa MD, Wayne Duvenage, says the initiative was aimed at providing customers with the opportunity to rent the new Toyota Prius, an environmentally friendly vehicle, and make their rental experience one of minimal environmental impact. “In addition to introducing low emission cars, the Avis Cares brand focuses on improved recycling, investing in community upliftment, internal training and development, and procurement through suppliers
made up of previously disadvantaged individuals,” he says.

Avis
   
 

Tree Planting Initiative – Barons Western Cape

 

Barons Western Cape have committed to planting an indigenous tree for every vehicle sold. The joint venture sees
the dealership teaming up with the City Parks Department and the Office of the Mayor of Cape Town.

Executive mayor, Helen Zille, said: “On behalf of the City of Cape Town I offer my full support to the Barons ‘Trees for Cars’ Initiative. Air pollution is becoming a serious problem for our environment and the health of our residents. Last year the City experienced over 150 days where air pollution levels were higher than internationally accepted standards. Barons has chosen to plant a tree for every car that they sell in order to help counterbalance the carbon emissions that cars produce and so give their customers the opportunity to help make Cape Town a healthier city.”

Barons
   
   
 

Group policy

  The group provides the framework under which the operations structure their respective environmental policies and systems appropriate to the nature of their operations.
   
  Highlights of the Barloworld environmental policy include:
 
  • The implementation of environmental management systems in all divisions to guide environmental responsibility and accountability at all levels of management and continual improvement of environmental performance through self-assessment and auditing
  • The divisional environmental policies cover:
    • Clear accountability structures
    • Compliance with environmental laws, and other standards and codes of practice to which the company subscribes
    • The practical optimisation of resources utilisation and minimisation of emissions and waste
    • Promotion of environmental awareness
    • Maintenance of dialogue with stakeholders to promote environmental protection
    • Development of contingency procedures to deal with unscheduled occurrences and community concerns.
  • A commitment to measuring and reporting on progress in terms of this policy.
 

Nature of products

  In offering its customers integrated solutions, Barloworld is mindful of their requirements for products and solutions that are environmentally sensitive and efficient. In this regard, the operations offer customers solutions that include the latest technology addressing energy efficiency and minimising emissions. Examples of this include the incorporation of Hybrid (Toyota Prius) and SAAB BioPower and Volvo V50 flexi-fuel vehicles in car rental fleets. Barloworld’s logistics division provides through the CAST-CO2 module of its leading supply chain design system, the ability to calculate the carbon footprint impact of any supply chain modelling and hence, the ability to reduce such impacts. Implementing this system has shown a significant reduction in carbon emissions. Caterpillar’s ACERT technology enables their engines to meet current and future emissions regulations and provides a long-term solution for the global engine market.
   
  In addition, the Norway and Sweden car rental operations offer customers an opportunity to offset their carbon footprint through the purchase of carbon credits. Invoices reflect the carbon emission during the rental period.
   
  The group is committed to working with its customers to ensure their requirements, including environmental aspects and objectives, are fulfilled and their competitive position enhanced.
   
 

Principals’ standards

  As a distributor of leading international brands, Barloworld represents major OEMs and principals. These include Caterpillar, numerous motor vehicle manufacturers, Hyster, Avis and Budget. These principals have their own standards and requirements which are filtered into the relevant Barloworld divisions and operations, providing further standards and ensuring compliance.
   
  In addition, such principals are environmentally aware and continue to develop products that contribute to mitigating and addressing environmental damage.
   
 

Healthy machines – healthy environment

Barloworld Equipment adds value to customers through comprehensive preventative maintenance practices that aim to improve productivity, avoid unscheduled downtime and costly after failure repairs, and prevent unnecessary use of scarce skills.
 
These offerings include, among others, operator training, machine inspections, fluid sampling and the use of specified Cat consumables such as filters and oils.
 
Sustainability is the ultimate aim of all our equipment maintenance practices. Healthy machines require good levels of contamination control, which means environmentally friendly practices when changing fluids. Waste is reduced when machines need fewer repairs and healthy machines use less fuel. Emissions are also reduced when machines run optimally and are operated correctly. Lastly, the need to replace machines and place pressure on resources is reduced.
 
The Barloworld Equipment SA Scheduled Oil Sampling (SOS) laboratory at Isando tests and interprets more than 7 000 oil samples from Caterpillar machines operating in southern Africa each month.
 
The SOS programme is not a solution to machine problems, but it is a tool for detecting problems early. By monitoring their equipment throughout its life, customers can optimise performance, maximise productivity, save money and support sustainability.
   
 

Important aspects

  The group intends to focus on the following aspects which it believes are the most relevant and material given the retail nature and after-market activities of its businesses:
 
  • Energy consumption
  • Water consumption
  • Greenhouse gas emissions
  • Materials consumption with emphasis on:
    • solvents
    • lubricants
    • tyres
    • batteries
  • Waste disposal with emphasis on recycling:
    • solvents
    • lubricants
    • tyres
    • batteries
 

Cat clean air technology

 
More than half of the new Caterpillar earthmoving machines sold in the past year help to keep our air clean. That’s because their engines are built using Caterpillar’s innovative ACERT technology.

Caterpillar developed ACERT technology to meet American and European diesel engine emissions regulations in on-highway and off-road applications and continues to refine the technology as the regulations become more stringent.

ACERT technology enables diesel engines to comply with legislated restrictions of harmful emissions such as carbon monoxide (CO), hydrocarbons (HC), non-methane hydrocarbons (NMHC), particulate matter (PM) and oxides of
nitrogen (NOx).

However, durability, longevity and ease of maintenance are also proven features of Caterpillar’s engines with ACERT technology. A single-technology solution meets emissions requirements and customer needs in both on-highway and off-road markets. This reduces complexity and allows Barloworld Equipment to provide excellent levels of product support with high parts commonality, ease of training for technicians and minimal additional tooling.

CAT
   
  Material consumption would relate primarily to internal commercial activities, whilst waste disposal would include both internal waste as well as waste generated from providing customer solutions.
   
  These aspects will be reviewed on a continual basis to ensure relevance and materiality. Individual operations are encouraged to identify additional aspects that are significant for their particular activities and implement appropriate initiatives in respect thereof.
   
 

Greenhouse gas emissions

  Barloworld appreciates the link between greenhouse gas emissions (GHGs) and environmental degradation and the need to reduce the carbon footprint of its activities. In order to do so effectively, Barloworld understands that targets must be set, strategies identified, initiatives implemented and results measured.
   
  Practical initiatives to reduce energy consumption are being considered in most operations that not only positively influence carbon emissions but are also commercially sensible due to rising energy costs and increasingly strict legislation.
   
  Barloworld believes that the measurement and control of its emissions is central to its role as a responsible corporate. Mindful that greenhouse gas emissions contribute to climate change, Barloworld is determined to reduce its carbon footprint. To this end, the relevant data has been reported over the past years during which Barloworld has improved recording and reporting systems in order to determine an accurate and comprehensive emissions baseline and measurement standards. During the year it has implemented a structured programme to accurately measure the carbon footprint of its logistics and automotive divisions focusing on their Scope 1 and Scope 2 emissions. It is intended to roll out this programme into the remaining operations during the course of 2009 with the intention of defining an accurate baseline for the group. Thereafter, reduction targets can be set and a strategy followed to reduce such emissions where possible.
   
  Emissions are calculated by multiplying the applicable factor by the related activity data. Regional specific factors were used and reported emissions include carbon dioxide, methane and nitrous oxide.
   
 

Scope 1 Emissions – Relate to internal consumption of petrol, diesel, heavy fuel oil, liquid petroleum gas and natural gas. Customer use is not measured. In southern Africa, standard GHG protocol (www.ghgprotocol.org) mobile factors were used, Australia used National Greenhouse Accounts (NGA) factors, Europe used the United Kingdom’s Department of Environment, Food and Rural Affairs (DEFRA) standards, United States used Department of Energy (DOE) standards.

Scope 2 Emissions – Relate to electricity consumption. Calculated using standard factors as above, except for southern Africa where current Eskom factors were applied.

CO2e – Carbon dioxide equivalent is the universal unit of measurement used to indicate the global warming potential of the main greenhouse gases on the environment. Carbon dioxide is a reference gas.

   
  Barloworld’s approach in this regard is first to measure, then to implement strategies that address the following areas:
 
  • Avoiding emission producing activities
  • Reducing emissions of unavoidable activities
  • Switching to appropriate energy reduction technologies where feasible
  • Off-setting remaining emissions from commercial activities.
 

Emissions per division (CO2e tons)

 
 
2008  
2007  
2006  
Automotive
81 126  
79 346  
74 269  
Equipment
49 296  
37 462  
31 233  
Handling
22 355  
18 880  
26 593  
Logistics
53 592  
22 869  
33 351  
Corporate
5 639  
4 435  
4 901  
Total
212 008  
162 992  
170 347  
   
 

Scope 1 & 2 Emissions per division – 2008 (CCO2e)

 
 

Scope 1  

Scope 2  

Automotive
35 173  
45 953  
Equipment
26 367  
22 928  
Handling
16 908  
5 447  
Logistics
47 697  
5 896  
Corporate
nr  
5 639  
Total
126 145  
85 863  
  The abbreviation ‘nr’ stands for ‘not reported’.
   
  Barloworld is also mindful of the carbon emissions generated by the customer solutions provided to its customers and strives to provide customers with environmentally friendly solutions that reduce environmental damage through incorporating the latest technology available, including fuel efficient vehicles and equipment, and optimised supply chain logistics. As an additional element of its flexible, value-adding, integrated customer solutions, Barloworld anticipates including the opportunity for customers to offset their greenhouse gas emissions resulting from the use of the provided solution such as vehicles and equipment either rented or hired. This is already provided by its Norway and Sweden car rental operations.
   
 

Emissions per energy source – 2008 (CO2e)

Diesel

Petrol

Heavy oil

LPG

CNG/LNG

Electricity

84 358
40 533
1 036
169
49
85 863
   
 

Carbon offset programme
The Avis and Budget operations in Norway have as part of upholding their environmental certification ISO 14001, and as part of being a socially responsible entity, undertaken to be carbon neutral in terms of the carbon emission from their operations, with the exclusion of emissions from their rental fleet and licensee operations. The guiding principles of carbon neutrality as detailed in the Kyoto Protocol have been applied.

This has been achieved by the company entering into a partnership with a Norwegian based company called CO2focus AS. On an annual basis the company in conjunction with this partner calculates the carbon footprint of the company based on the following areas:

  • Emissions from company vehicles
  • Emissions from electric heating
  • Emissions from travel by air
  • Emissions from the production and management of general waste
  • Emissions from the utilisation of paper products

The company’s partner will calculate the carbon footprint and audit this, providing the company with a total amount of carbon based emissions. The company will then purchase an equivalent amount of carbon credits (CER as detailed below) from a United Nations certified carbon credit provider, under the UN’s Clean Development Mechanism (CDM) project. These credits have been issued by the UN and have been validated and verified by an approved certification entity and will be done annually.

 
Flag

The UN credits are called CERs (Certified Emission Reductions) which guarantees the reduction of greenhouse gas emissions of 1 ton CO2 equivalent (1 CER = 1 ton CO2e). Generally these programmes are linked with sustainable development in developing countries, and form part of the flexible mechanisms for carbon emission control established under the Kyoto Protocol.
   
 

Materials

  The predominantly retail and related aftermarket activities of Barloworld do not require significant consumption of materials (excluding energy) nor does the group purchase or convert raw materials. However, the broad range of products and services offered results in a broad range of materials used although not all in significant quantities. Materials are sourced from legitimate suppliers. The group intends to focus on solvents, lubricants, tyres and batteries. This is to ensure attention on the materials that potentially have the most significant environmental consequences. The intention is to distinguish between Barloworld and customer consumption of such materials. Other aspects will be considered as the group progresses and expands its sustainability drive. Current use of recycled materials is not significant and mainly comprises paper. The current annual report is printed on environmentally friendly paper. Records of materials consumed are maintained by the respective divisions. These are being reviewed in line with the group’s intention to narrow its focus and improve its reporting systems for those aspects which it considers to be significant in the context of its activities.
   
 

Energy

 

The commercial activities of Barloworld do not require extensive consumption of energy. Nonetheless, the group recognises the environmental consequences of energy consumption particularly those originating from non-renewable resources. Principally, energy is consumed in the form of fossil fuels (petrol and diesel) or electricity obtained from utilities wherever the group operates. The group aims to reduce its energy consumption, particularly that generated by non-renewable sources. In this regard, approximately 36% of the Scandinavian car rental electricity usage is either wind or hydro-generated. Only internal consumption is reported by the group.

All operations are aware of the need to monitor and improve their energy efficiency where possible. Direct and indirect energy consumption is addressed. Generally, activities in this regard include improving efficiencies of operations which results in an overall reduction of direct energy consumed. Specific actions include being environmentally sensitive in the building and renovation of business sites, usage of company vehicles and retrofitting of energy efficient lighting systems and timing switches. The newest handling facility in Charlotte, North Carolina uses electronic controls and timers to manage the operation of its heating, ventilation and air conditioning (HVAC) systems.

Indirect initiatives include an increase in video-conferencing and reduced air travel. The quantity of energy saved due to conservation and efficiency improvements is not yet available. It is envisaged that the measurement initiatives that are currently being implemented will provide such information in due course. It is Barloworld’s intention to report such data in the future.

   
 
 
Electricity consumed (MWH)
Total fuel (ML)
 
2008  
2007  
2006  
2008  
2007  
2006  
Automotive
42 297  
56 166  
53 788  
13.9  
12.5  
11.3  
Equipment
23 185  
19 200  
15 692  
9.7  
8.1  
7.4  
Handling
8 458  
8 588  
16 110  
6.4  
4.8  
5.3  
Logistics
4 913  
nr  
nr  
17.1  
9.6  
14.0  
Corporate
4 699  
5 116  
5 653  
nr  
nr  
nr  
Total
83 552  
89 070  
91 243  
47.1  
35.0  
38.0  
  Note: Electricity and fuel for automotive and logistics were collated in terms of the specific carbon measurement project which resulted in more precise measurement of these aspects in 2008. The abbreviation ‘nr’ stands for ‘not reported’.
   
  Graphs
   
 

Water

  Due mainly to their urban and industrial locations, Barloworld’s operations obtain the majority of their water from municipal and local government water supply systems. The majority of water consumption is for the purposes of washing vehicles and equipment, followed by the cleaning of facilities and domestic use. The significant decrease in consumption from the previous year is due to the unbundling of the coating operations. The automotive division remains the largest consumer of water due to the washing of its car rental fleets and motor retail activity. In the car rental operations, washing vehicles is a key aspect of vehicle turnaround and rental preparation and, in the motor retail operations, sold and serviced vehicles are washed prior to being presented to customers.
   
  Water is principally discharged back into municipal systems with emphasis on compliance with all applicable standards and regulations. This includes the required filtration systems and mechanisms. These aspects are continually monitored as an integral part of the environmental standards and internal reviews are conducted on a regular basis.
   
  Consistent with its commitment to reducing the environmental impact of its activities, the automotive division installed a number of water recycling facilities in its operations, the most notable of which are for its car rental vehicle turnaround facilities in South Africa at Isando (Johannesburg), Cape Town and Durban. On a daily basis approximately 2 300 vehicles are washed at these facilities and between 70% to 75% of the water used is recycled. Further recycling facilities are being built at these locations. A water recycling facility for car rental operations in Port Elizabeth will be completed in 2009.
   
  Water conservation also features prominently in automotive Australia’s new Bayside Mercedes-Benz and Volkswagen facilities where a 380 000 litre underground tank was installed to collect rain water used for vehicle washing and plant watering. It is anticipated that around 2 400 vehicles will be washed per month and that 100% of the water will be recycled. Elsewhere in the group, the equipment operations in Spain recycle 1 800m3 litres annually through water treatment plants located in Arganda, Las Palmas, Lerida and Macael.
   
  Barloworld is not aware of any water sources that were significantly affected by its consumption during the year.
   
 

Barloworld Motor Retail Australia builds “Green”

 

The new Mercedes-Benz and Volkswagen dealerships in Melbourne, Australia were built with the environment in mind. These leading facilities included the following environmentally friendly aspects in their design:

  • Water harvesting – 380 000 litre underground tank collecting rain water for washing cars and watering plants
  • Automatic car wash uses recycled water. 100% of the water used in the washing process is recycled
  • All glass is treated to reduce heat gain and loss. On average, the treated glass is 14% more thermally efficient than untreated glass. Untinted glass would have improved visibility of the cars in the showroom but the environmental factors were considered paramount by the management team
  • Natural light in workshops to reduce lighting loads
  • Air conditioning units are 5-star rated
  • Minimum west facing windows to reduce heat load
  • Planting 4 500 plants including 30 mature trees.
Mercedes
   
 
 
Water consumption (ML)
 
2008  
2007  
2006  
Automotive
489  
542  
501  
Equipment
180  
115  
141 
Handling
47  
43  
39  
Logistics
37  
0.2  
nr  
Corporate
22  
10  
11  
Total
775  
710  
692  
  The abbreviation ‘nr’ stands for ‘not reported’.
   
  Graph
   
 

Biodiversity

  Barloworld operations are conducted in industrialised and urbanised environments and accordingly do not affect protected areas or areas with high biodiversity value. In particular our commercial activities have minimal direct impact on terrestrial, fresh water and marine environments.
   
  Barloworld has a small number of operations adjacent to protected areas. These include operating a vehicle maintenance and repair contract from a property alongside the Kruger National Park in South Africa and a Handling USA branch in Little Rock adjacent to National Wildlife protected wetlands. These operations do not negatively affect the protected areas.
   
 

Waste

  Barloworld’s operations do not produce significant quantities of waste. The source of waste materials including oil, tyres and batteries is principally from service and maintenance activities for
customers, or in respect of provided customer solutions which include rental fleets.
   
  Waste is either recycled or disposed of through certified waste contractors or accredited suppliers.
   
  Significant waste disposal aspects include the recycling of lubricants and the disposal of tyres and batteries. All hazardous material is disposed of at permitted waste sites, with certificates of
safe disposal being issued where required. All waste oil is recycled.
   
  Barloworld represents its principals’ products and there is no obligation on the group to dispose of such products at the end of their life-cycle. However, due to the nature of the products sold, a relatively high percentage may be recycled in the form of scrap metal.
   
  Approximately 70% of Caterpillar components in South Africa are rebuilt, prolonging their life and reducing waste.
   
  The group received four notices for environmental non-compliance. All of these originated from the Barloworld Equipment operations in Durban and were related to the high mineral oil content in the trade effluent discharge system stemming from the washbay facility. This is being urgently addressed.
   
  One oil spill took place in the Handling USA operation as a result of a truck accident. This was cleaned up with no lasting negative consequences.
   
  Handling USA has sourced the services of a waste consolidator to advise on all waste streams and to facilitate the development of optimal recycling and disposal strategies.
   
 
Support for disposal of used oil
Barloworld Motor Botswana supports the activities of Tshole Trust, a non-governmental organisation that seeks to educate the public on safe disposal of used oil, through public awareness campaigns and installation of oil collection tanks.
car
   
 

CAT MACHINE REBUILD/REMAN programme means less waste
About 41 machines were rebuilt in Barloworld Equipment Southern Africa facilities in the past year. These machines are mainly large mining machines, off-highway trucks in particular, but also include Cat construction machines that have built-in second life capability such as motor graders. Most rebuilds were undertaken at the Isando, Middelburg, Bloemfontein, Cape Town and Gaborone (Botswana) facilities. The programme reduces cost and ensures that machines are used to their full capacity, thus helping to save resources. Engines and drive train components are also rebuilt. Again the objective is to keep customer machines active at minimal cost and avoid excessive manufacture and import of new components.

Last year the Component Rebuild Centre (CRC) for engines rebuilt 140 large engines, 195 medium engines and 167 small engines.

Equipment CRC capability will be doubled next year through the combination of the engine and drive train facilities into a single expanded state-of-the-art CRC.

Engine
   
 

Barloworld Handling USA is serious about waste
Handling USA has partnered with a leading waste consolidator as an integral part of its environmental focus. Previously each branch managed its own waste streams dealing with multiple local vendors. Cost control, regulatory compliance and reporting were complex.

The current arrangement provides a central point of contact that manages waste disposal in an environmentally responsible manner. This covers recycling of waste materials including used oil, paper and metal as well as the appropriate disposal of other hazardous and non-hazardous waste materials on behalf of all Handling USA operations. The waste consolidator’s services include:

  • Working with each location to minimise waste streams destined for landfills and to maximise the recycling of waste
  • Ensuring waste is only handled by licensed haulers that carry environmental insurance and that waste is only disposed of, or recycled, at licensed and regulatory compliant facilities
  • Collecting and storing required compliance documentation from haulers
  • Consolidating waste streams with fewer vendors to better control the environmental impact and reduce exposure to regulatory consequences
  • Negotiating contracts with waste vendors to improve efficiencies and reduce overall costs
  • Providing reports on waste streams, improving tracking accuracy and relieving operations of reporting responsibility.

The arrangement improves administrative efficiencies as Handling USA has a single point of contact for waste disposal services that cover all its USA operations and underscores handling’s commitment to environmental legitimacy.