Barloworld is committed to environmental stewardship and we strive to not only limit our direct environmental impacts through management programmes across our divisions, but also to limit the impacts associated with the use of our products and services.

This is consistent with the group’s shared value approach and aligns with our identification of Sustainable Development as one of the group’s six strategic focus areas. Internally, improving non-renewable energy consumption and greenhouse gas efficiencies, efficiency-of-use of natural resources, water stewardship and responsible waste management have been identified as material aspects.

We are committed to conducting our operations in an environmentally responsible manner and providing innovative customer solutions that assist our customers to achieve their environmental objectives.

Innovative customer solutions

We largely represent Original Equipment Manufacturers (OEMs) and remain mindful of environmental stewardship as we engage with our suppliers and customers in such a manner that every effort is expended in ensuring that the products we represent and our customer solutions comply with the relevant environmental standards and are used in a manner that limits their impact on the environment.

We are aware of the well-publicised Volkswagen and Audi emission issues affecting customers internationally. We recognise the associated risks and are engaging with our principal. The Volkswagen and Audi vehicles sold by us in our dealership territories meet local emissions compliance standards, and our operations have consequently not been directly impacted. We regret any anxiety or uncertainty our customers, or any other stakeholders, may have experienced because of this matter.

Our various customer interactions ensures alignment of our offerings with customers’ expectations and enables Barloworld to collaborate on innovative customers solutions that assist customers achieve their own sustainability related objectives. Take, for example, the Bronkhorstspruit Biogas Power Plant, where biogas is being produced from cattle manure and converted to electric power using Caterpillar gas generator sets supplied by Barloworld. The electric power will in turn be consumed by BMW’s Rosslyn plant near Pretoria. While providing an innovative energy solution to our customer, this drives environmental value through renewable power, social value through employment opportunities across the value chain, and economic value for Barloworld Power, Caterpillar and our shareholders.

Sustainability

Sustainability

The power of endurance

We focus on environmental responsibility and preventing waste

We focus on improving the quality and efficiency of our operations while reducing our environmental impact. We support environmental stewardship by utilising business processes that enable waste prevention, improve quality and promote the efficient use of resources in operations. We are committed to complying with environmental laws and regulations and expect our suppliers to do the same. (Barloworld Worldwide Code of Conduct)

We innovate to make our customers more efficient and productive

We innovate to provide customers with products, services and solutions that improve the sustainability of their operations. We leverage technology and customer insight to improve product performance, and promote remanufacturing to extend product life and make our workplaces more productive, safer and more efficient. We support sustainable solutions that protect and preserve the environment while leading to profitable growth for Barloworld and our customers. (Barloworld Worldwide Code of Conduct)


Water

Given the largely urban locale of our operations, almost all water is withdrawn from municipal systems. No water is removed from source as the predominant use of water within the group is for washing of vehicles, plant and equipment. The water is then discharged back into the municipal systems once properly filtered. Despite not being a significant consumer of water, Barloworld has implemented a number of water-efficiency initiatives that alleviates demand pressure on this scarce global resource. Initiatives implemented include water recycling and rainwater harvesting, waterless car washes and real-time consumption monitoring. This delivers economic value in terms of cost savings, has environmental benefits through conserving and recycling a scarce natural resource, and drives social value by responding to existing water security concerns. The group has set an aspirational water efficiency improvement target as part of its Vision 2020.

Climate change

Appreciating the causal link between carbon emissions and climate change, we have set targets to 2020 for non-renewable energy and greenhouse gas emissions (scope 1 and 2) efficiency improvements and renewable energy consumption. Our commitment to improving non-renewable energy efficiency and the resulting greenhouse gas emissions is underpinned by the group being an early signatory to South Africa’s Energy Efficiency Accord and signatory to the South African National Business Initiative’s Energy Efficiency Pledge. The group has a Climate Change policy, supported by related policies including an Energy Efficiency policy.

Targets

At the end of 2014, we set an interim group aspirational target of a 2% efficiency improvement in non-renewable energy consumption and greenhouse gas emissions (scope 1 and 2) by the end of this financial year off a 2014 baseline. It was set against a business-as-usual scenario that tracks revenue as a proxy for business activity. This one-year target allowed us to align future targets with our strategic period from October 2015 through September 2020. Although we did not achieve our target in 2015, it played a significant role in focusing attention and prompting relevant initiatives which benefited the group over the past year.

In line with our Vision 2020 we have set group-level aspirational targets for each of our identified material issues to 2020, off a 2015 baseline.

Monitoring and reporting

In accordance with our Climate Change policy, we measure, monitor and report aspects of our business that contribute to climate change and we strive to reduce, minimise and offset these activities. We also report in terms of the Global Reporting Initiative guidelines and participate in the CDP’s reporting initiatives (the group has also completed the CDP Climate Change Disclosure and CDP Water Disclosure). As a signatory to the United Nations Global Compact, Barloworld also submits an annual COP report.

Materials used

Materials are sourced from OEMs and other suppliers and are used to support the retail and service aspects of the group’s operations.

Materials used which are considered to have a high impact on the environment are monitored and reported. Direct (own) and indirect (customer) consumption patterns are monitored and provide important indicative patterns of consumption.

Apart from its significant Remanufacture and Rebuild activities, as Barloworld predominantly represents OEMs and principals, the opportunities for using recycled materials are limited. Relatively significant items in this regard are paper and re-treaded tyres.

Waste

The group does not generate significant volumes of waste. Both hazardous and non-hazardous waste streams are monitored by type, volume, disposal method and destination.

A critical aspect of the group’s waste management and product life cycle stewardship addresses extending product usage. This includes ensuring that products have a number of useful lives, which is achieved through our Remanufacture and Rebuild programmes.

The 100% acquisition of SmartMatta (previously re-, an environmental solutions company) demonstrates our commitment to constantly finding innovative ways to drive economic, environmental and social sustainability. The acquisition supports our internal imperative as well as broadens our capability in assisting customers achieve their own objectives regarding responsible waste management. The group has set an aspirational target for 2020 regarding its waste management approach.