Indicators addressed under Indirect economic impacts are covered by our sustainable development framework and our commitment to being a responsible corporate, and the Financial, Social, Intellectual, and Human capitals.

Barloworld’s Worldwide Code of Conduct (Code of Conduct) sets out the group’s five core values of integrity, excellence, teamwork, commitment, and sustainability. It determines how our aspirations and values are translated into actions and behaviours.

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 ethical principles outlined in the Barloworld Code of Conduct’.

Our Code of Conduct reminds us of the behavioural standards to which employees and the group are accountable, and consequently it informs the group of what is to be regarded as the Barloworld way of doing business within the organisation.

Operating in the communities which we do, Barloworld creates significant value for local suppliers including Original Equipment Manufacturers (OEMs) and sub-contractors. This is reduced where plant and equipment can only be sourced from offshore principals, in which event the commitment is to spend the balance locally.

Sourcing varies by regions of activity and division. Our Rental and leasing businesses operations sources vehicles through local OEMs resulting in some 97% (including salaries and wages) of its spend being locally based. Given the nature of the Equipment business and sourcing Caterpillar product, local spend across our Equipment Russia operations was some 24%, Equipment southern Africa was some 25% and Equipment Mongolia was some 19%. Within Ingrain, some 99% of procurement spend for the financial period was local.

At an aggregated group level (continuing operations), in excess of some 68% of total spend was local in nature.

Direct value for communities includes the group’s support for enterprise and supplier development initiatives under Barloworld Siyakhula and other community investment activities.

These principally benefit communities in South Africa, in excess of some R370 million in accumulated funds invested for enterprise and supplier development initiatives since inception (since 2007).

Indirect economic impacts include employee spending, the provision of products and services, community development, and job creation, reducing demand on the fiscus and enabling resources to be redirected to other areas of the economy.

In South Africa, an effective way of bringing previously disadvantaged groups into the economy is through procurement. Preferential procurement practices vary by business unit and are influenced by the source and nature of their requirements, as well as the Broad-Based Black Economic Empowerment (B-BBEE) status of represented OEMs/suppliers.

 

The reporting organization shall report the following information: a. Percentage of the procurement budget used for significant locations of operation that is spent on suppliers local to that operation (such as percentage of products and services purchased locally). b. The organization’s geographical definition of ‘local’. c. The definition used for ‘significant locations of operation’.

Integrated Report

Barloworld is committed to stakeholder value creation and supporting local communities as far as possible. A significant aspect of this spend is remuneration for locally resident employees. The number of employees by region who benefit from employment is reflected below.

Employee breakdown by region*  2021   2020    2019 
South Africa  7 173   7 101    9 621 
Rest of Africa  1 366   1 450   1 702 
Europe and Russia  1 684   1 697    1 068 
Middle East  0     68 
Australia 0    
Total  10 229   10 248    12 459 

By operating in communities, Barloworld creates significant value for local suppliers including Original Equipment Manufacturers (OEMs) and sub-contractors. This is reduced where plant and equipment can only be sourced from offshore principals, in which event the commitment is to spend the balance locally.

Sourcing varies by regions of activity and division. Our Rental and leasing businesses operations sources vehicles through local OEMs resulting in some 97% (including salaries and wages) of its spend being locally based. Given the nature of the Equipment business and sourcing Caterpillar product, local spend across our Equipment Russia operations was some 24%, Equipment southern Africa was some 25% and Equipment Mongolia was some 19%. Within Ingrain, some 99% of procurement spend for the financial period was local.

At an aggregated group level (continuing operations), in excess of some 68% of total spend was local in nature.

Direct value for communities includes the group’s support for enterprise and supplier development initiatives under Barloworld Siyakhula and other community investment activities.

These principally benefit communities in South Africa, in excess of some R370 million in accumulated funds invested for enterprise and supplier development initiatives since inception.

Indirect economic impacts include employee spending, the provision of products and services, community development, and job creation, reducing demand on the fiscus and enabling resources to be redirected to other areas of the economy. In South Africa, an effective way of bringing previously disadvantaged groups into the economy is through procurement. Preferential procurement practices vary by business unit and are influenced by the source and nature of their requirements, as well as the Broad-Based Black Economic Empowerment (B-BBEE) status of represented OEMs/suppliers.