This year marks 115 years of contribution to the communities and societies we belong to. It is a proud history that we are committed to upholding.
During the year we embarked on a strategy review process during which we have reflected on our performance against the goals we have set ourselves; and, as an organisation, we reflected on what we as a business want to achieve in the medium-term and what we want to leave as a legacy for future generations.
We have defined our Purpose to be: Inspiring a world of difference, enabling growth and progress in society.
In order to fulfil this, we will carefully balance the six capitals; Intellectual; Financial; Manufactured; Social/Relationship; Human; and Natural. We understand that we will need to make trade-offs between these capitals during our strategic journey, and different phases will require different trade-offs to ensure sustainable value creation for our stakeholders.
We have defined ambitions for each of the capitals, and where relevant, we have set aspirational targets to focus attention and underscore our commitment to them.
Our revised strategy seeks to balance our long-term growth ambitions with medium-term returns for our stakeholders, underpinned by our responsible citizenship programme.
In the short to medium-term we are focussing on our Financial capital, addressing three critical levers:
- Fix and optimise our existing portfolio
- Implement a more active shareholder operating model
- Add high growth businesses to our portfolio.
While focusing on our Financial capital, we will be balancing the interests of our stakeholders as well as considering and managing the impacts on our other capitals.
Our Code of Ethics and Worldwide Code of Conduct are central to our responsible citizenship programme and inform the manner in which we pursue our strategic ambitions and address these critical levers.
Protect the environment is in our Code of Ethics, and Sustainability is one of our five core values in our Worldwide Code of Conduct.
By actively engaging our stakeholders we will optimally manage our capitals, make the wisest trade-offs we can, and balance their interests to ensure sustainable value creation.
The health and safety of others and ourselves is our foremost consideration. We put safety first in our work environment and promote safe practices throughout our value chain. Tragically, we had three work-related fatalities this year which have heightened our awareness on safety at work.
Our responsible citizenship programme includes climate change, environmental considerations and managing our Natural capital. We are mindful of the environmental consequences of our activities, and are committed to conducting our operations in an environmentally responsible manner. We also offer innovative customer solutions that enable our customers to achieve their own objectives including minimising environmental impacts.
We consider our responsibilities in our value chain and have implemented a number of initiatives to assess and limit any potential risks emanating through our supply chain.
As a large, multi-national organisation, our purchasing power has the potential to create meaningful change in the communities in which we operate. By being mindful of where we spend our money, we can deliver on our localisation and supplier diversity objectives.
Our supplier diversity and localisation initiatives create legitimacy and credibility in the eyes of our stakeholders. This enhances our reputation while creating commercial opportunities for both our suppliers and ourselves.
Organisational sustainability is central to our Purpose: Inspiring a world of difference, enabling growth and progress in society.
I believe through our revised strategic approach, the purposeful stewardship of our six capitals and balancing our stakeholders’ interests we will achieve ongoing creation of shared value for our stakeholders.
We will also make a world of difference to the communities where we operate and they will be better-off having Barloworld operations than they would be without us.
- Chief executive’s sustainable development message
- Barloworld IR 2017 – Chief executive's review
- Barloworld solar panels – Barloworld Equipment & Barloworld Power
- Barloworld Sustainability overview
- Inspiring a Word of Difference – Environment
- Barloworld’s alignment to the United Nation’s Sustainable Development Goals