The reporting organization shall report the following information: a. Name of the organization.

Integrated Report
Annual General Meeting
About Barloworld - IFC Corporate Information - 16
Consolidated Financial Statements
About Barloworld - IFC Corporate Information - 163

These aspects are covered in the Barloworld 2021 Integrated Report and related disclosures.

The reporting organization shall report the following information: a. A description of the organization's activities. b. Primary brands, products, and services, including an explanation of any products or services that are banned in certain markets.

Integrated Report
Annual General Meeting
About Barloworld - 3
Consolidated Financial Statements
About Barloworld - 1 Nature of business - 20

The responses below are in addition to the aspects covered in the Barloworld 2021 Integrated Report and related disclosures.

Given the nature of our businesses, which includes customer contracts in fleet services, mining, marine, construction and consumer industries, a relatively high percentage of the group's revenue is annuity, or significant Business to Business (B2B) based.

The percentage of revenue from recurring customers varies across our operations from some 57% to some 95%. At an aggregated level for continuing operations, approximately 67% of revenue stems from recurring customers and some 8% is derived from online / digital platforms.

Technology and e-business
Barloworld participates in market segments where competitors continuously evolve themselves by applying new digital technologies and business models that affect the value proposition of existing goods and services. Barloworld must therefore continuously respond to the digital disruption to remain relevant through the application of new technologies and digital transformation initiatives to address the following categories:

  • Employee experience
  • Customer experience
  • Business operations
  • New business models

Where digital initiatives are explored by its various principals, Barloworld actively participates to ensure it remains relevant and competitive.

Barloworld has through the establishment of a digital governance framework established the foundation that allows for the discovery of digital opportunities and quick experimenting at low cost which allows for failure. A full scale up is only approved after successfully demonstrating the technical feasibility and customer demand. This digital governance framework will furthermore assist in driving the deliberate and continuous development of breakthrough capabilities aimed at anticipating and responding to changing customer needs and creating offerings that will delight and exceed customers’ expectations.

The reporting organization shall report the following information: a. Location of the organization's headquarters.

Integrated Report
Annual General Meeting
Corporate information - 16
Consolidated Financial Statements
Corporate information - 163

These aspects are covered in the Barloworld 2021 Integrated Report and related disclosures.

The reporting organization shall report the following information: a. Number of countries where the organization operates, and the names of countries where it has significant operations and/or that are relevant to the topics covered in the report.

Integrated Report

The reporting organization shall report the following information: a. Nature of ownership and legal form.

Integrated Report
Annual General Meeting
Major Shareholders - 9 Corporate Information - 163
Consolidated Financial Statements
Directors' report - 20

Barloworld is incorporated in South Africa under the provisions of the Companies Act, No. 71 of 2008, as amended (Companies Act). The company is listed on the Johannesburg Stock Exchange (JSE) and maintains secondary listing on Namibia Stock Exchange.

The reporting organization shall report the following information: a. Markets served, including: i. geographic locations where products and services are offered; ii. sectors served; iii. types of customers and beneficiaries.

Integrated Report
Annual General Meeting
Our Board of Directors - 3
Consolidated Financial Statements
Directors' report - 20 Accounting Policies - 27 Accounting Policies - 28 Accounting Policies - 28

This is covered in the Barloworld 2021 Integrated report including geographic representation.

Customer segments include corporates; individuals; state; state owned enterprises; local utilities and municipalities; our customer markets include mining, construction, infrastructure operators (these segment cover Eurasia and Southern Africa), food and beverage manufacturers and suppliers of feed into the agriculture sectors. Furthermore, the group sells vehicle on the wholesale and retail; market; as well as supporting; contractors and sub-contractors serving these segments.

The reporting organization shall report the following information: a. Scale of the organization, including: i. total number of employees; ii. total number of operations; iii. net sales (for private sector organizations) or net revenues (for public sector organizations); iv. total capitalization (for private sector organizations) broken down in terms of debt and equity; v. quantity of products or services provided.

Integrated Report
Annual General Meeting
About Barloworld - 3
Consolidated Financial Statements
Review and Reports - 2

These aspects are covered in the Barloworld 2021 Integrated Report and related disclosures.

The reporting organization shall report the following information: a. Total number of employees by employment contract (permanent and temporary), by gender. b. Total number of employees by employment contract (permanent and temporary), by region. c. Total number of employees by employment type (full-time and part-time), by gender. d. Whether a significant portion of the organization's activities are performed by workers who are not employees. If applicable, a description of the nature and scale of work performed by workers who are not employees. e. Any significant variations in the numbers reported in Disclosures 102-8-a, 102-8-b, and 102-8-c (such as seasonal variations in the tourism or agricultural industries). f. An explanation of how the data have been compiled, including any assumptions made.

Integrated Report
Annual General Meeting
About Barloworld - 3
Consolidated Financial Statements
Additional Information - 159

We understand that our employees are the foundation and drivers of our success. Accordingly, one of our three strategic objectives is: Instil a high-performance culture and Talent is an area of focus in the delivery of our strategy and ambitions. Creating value through – and for – employees by attracting, developing and retaining the globally competitive people necessary to implement our strategy and meet our growth targets remains one of the group’s most vital attributes.

  Global Breakdown – 2021    Global Breakdown – 2020    Global Breakdown – 2019 
Employee breakdown by Gender Male Female Total   Male Female Total   Male Female Total
Board*  1 0 1    
Executive  19 16 35   17  20  37    25  17  42 
Senior Management  66 31 97   56  20  76    84  28  112 
Middle Management  725 550 1 275   641  424  1 065    840  573  1 413 
Skilled Upper  3 610 1 735 5 345   3 369  1 580  4 949    4 050  2 029  6 079 
Semi-skilled/apprentices/trainees  2 661 655 3 316   2 786  642  3 428    3 559  879  4 438 
Labour/Unskilled  113 47 160   521  170  691    240  134  374 
Total 7 125 3 034 10 229   7 392  2 856  10 248    8 799  3 660  12 459 

 

Specific activities include talent management, developing internal resources for promotion through detailed development needs analysis per person, leadership style, performance management and remuneration, and continued focus on technical skills upliftment.

Number of employees* – Group 2021   2020  2019 
Equipment  5 239   5 866  5 613 
Handling 0   18 
Automotive  1 860    1 759  3 045 
Corporate 69   101  126 
Ingrain 830  
Total Continuing Operations 7 998   7 726  8 802 
Logistics 2 231   2 522  3 657 
Total 10 229   10 248  12 459 
*Includes permanent employees and contractors > 12 months. Excludes non-executive directors.

Number of contractors > 12 months – Group  2021   2020  2019 
Equipment  22   64  86 
Automotive  27   30  55 
Corporate  8  
Ingrain 6   0 0
Total Continuing Operations 108   94  148
Logistics 77   3 107
Total 185   97 255

 

In addition to the permanent workforce and contractors greater than 12 months, the group employed 314 people on short term/temporary contracts less than 12 months as of 30 September 2021.

Employee breakdown by region*  2021   2020  2019 
South Africa  7 173   7 101  9 621 
Rest of Africa  1   1 450 1 702 
Europe and Russia  1 684   1 697  1 068 
Middle East  0   68 
Total (Includes Held for Sale operations – Logistics) 10 229   10 248  12 459 
*Includes permanent employees and contractors > 12 months. Excludes non-executive directors.

The reporting organization shall report the following information: a. A description of the organization's supply chain, including its main elements as they relate to the organization's activities, primary brands, products, and services.

Integrated Report
Annual General Meeting
About Barloworld - 3
Consolidated Financial Statements
Review and Reports - 20 Review and Reports - 21

To sustain long-term value creation for all stakeholders as envisaged by our Values and sustainability principles, it is important to align ourselves with a robust supply chain, responsible leading principals and Original Equipment Manufacturers (OEMs).

Mutual respect, trust, support and benefit, guided by our governance and ethical frameworks, underpin our relationships throughout our supply chain. The group has developed a set of conduct criteria and standards for suppliers which form part of a supplier due diligence initiative. Where non-conforming suppliers are identified, appropriate action is taken according to the circumstances.

Integral to our value chain is our commitment to being a leader in sustainable development and identifying competitive advantages through solutions that help customers achieve their sustainability objectives, facilitate a transition to lower carbon economies and expand into related opportunities.

A key socio-economic driver, within the South African context, is integrating previously disadvantaged groups into the economy. Aside from OEMs and principals, we support and empower a range of small and medium-sized suppliers, contractors and enterprises in our supply chain, through our South African-oriented enterprise development initiatives and preferential procurement programme. We are committed to the localisation and empowerment of our supply chain where practicable and have completed a number of supplier development interventions in South Africa. We also put increased effort on preferential procurement across all divisions and business units in order to bolster access to the Barloworld value chain for black owned and black women owned entities. Founded in 2007, Barloworld Siyakhula is Barloworld’s primary enterprise and supplier development arm, driving black economic empowerment, inclusive growth and transformation in our South African operations.

Since inception, Siyakhula has invested an accumulative spend of over some R370 million on enterprise and supplier development, indirectly sustaining over 1 775 jobs. Comprehensive assistance provided to over 209 SMMEs in South Africa – fostering economic growth.

Our operations therefore are part of supply chains that are geographically globally diverse; and reflect international best practice in the manufacture, sale, service, support and disposal of products. These standards are complemented by Barloworld’s own ethics, values and standards. We are committed to working with suppliers to ensure our customers’ objectives are met and their competitive position enhanced.

Mindful of our responsibilities in our value chain, a number of initiatives have been implemented to assess and limit any potential risks emanating through our supply chain. Our code of conduct includes:

"We build outstanding long-term relationships with our principals, suppliers and customers’ “…we expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights…"

We have assessed our principals and selected suppliers for environmental, labour, human rights, bribery and corruption, and corporate citizenship risks. None of these principals and suppliers have been assessed as high risk for each of the aspects above. These principals represent 68% of our total group procurement spend for the 2021 financial period.

The globally diverse manufacturing locations of our suppliers and principals, mitigates economic, social and environmental risks and enhances the group’s resilience.

Third party service providers and suppliers (TPSP&S) in all business divisions have been subjected to a risk assessment and due diligence processes in relation to bribery and corruption. This due diligence process involves the integration of a more rigorous assessment of TPSP&S into the existing procurement processes and setting clearly defined minimum requirements. This process is now applied to new TPSP&S and is ongoing for existing TPSP&S, in accordance with the Barloworld Due Diligence policy.

As part of this process, in excess of 2896 suppliers (33% of total active suppliers) have signed the Barloworld Supplier and Service Provider Code of Conduct which includes, among other things, the following voluntary undertaking from suppliers:

"The supplier or service provider understands that it has responsibility for its own supply chain and for managing standards of conduct within its supply chain. It therefore agrees to encourage and promote high ethical standards and adherence to international best practices in human rights, health, safety and environmental standards when undertaking its contractual obligations towards Barloworld."

There are ongoing efforts to have more suppliers sign the Supplier Code of Conduct.

Our commitment to legitimate supply chains is reflected in our Worldwide Code of Conduct which states:

"We build outstanding long-term relationships with our principals, suppliers and customers.

The company’s strength and longevity are the result of our ability to sustain long lasting, mutually rewarding relationships with our principals, suppliers and customers.

Our principals and suppliers serve as a critical link between our company and our customers worldwide. We rely on them to participate with us as partners in building and maintaining the long-standing customer relationships that have made Barloworld successful. We value their positive contributions to our reputation and their deep commitment to the customers and communities we serve. We sustain our outstanding relationships with them through trust, communication and shared rewards. We work constantly with them to provide products, services and support solutions necessary to exceed customer expectations.

We look for principals and suppliers who demonstrate strong values and commit to the ethical principles outlined in the Barloworld Code of Conduct. We expect suppliers to comply with the sound business practices we embrace, follow the law and conduct activities in a manner that respects human rights. No supplier is required to buy Barloworld products in order to compete for business or to continue as a supplier. We encourage fair competition among our potential suppliers."

As reflected in the group’s Value added statement, its supplier spend is some R37 145m.

  1. Diverse and leading world-class Original Equipment Manufacturers (OEMs) to ensure sustainable competitiveness through leading products and solutions, support, systems, values, governance, legitimacy and positively impact our risk profile.
  2. Localisation and empowerment of local suppliers to ensure integration of previously disadvantaged groups into the economy. We support and empower a range of small and medium-sized suppliers, contractors and enterprises in our supply chain, through our South African-oriented enterprise development initiatives and preferential procurement programme. We are committed to the localisation and empowerment of our supply chain where practicable in support of the local communities in which we operate.
  3. Alignment with the group’s Worldwide Code of Conduct to ensure legitimacy and to support our commitment to being a responsible corporate, shared value creation and our aspirational efficiency improvement metrics.

Where possible we leverage opportunities across our supply chain and examples of this include:

  1. Barloworld Siyakhula
  2. Barloworld Remanufacture and rebuild initiatives. A relatively high percentage of Caterpillar components are rebuilt, prolonging their life and reducing waste. In 2021, some 84% of total component sales in Equipment southern Africa related to remanufactured and rebuilt components, of which 59% related to Barloworld Equipment remanufactured parts and 41% related to Caterpillar remanufactured parts. Similarly in Equipment Russia, our Vostochnaya Technical operations have grown the value of reclaimed products to above 40% of major component sales which represents a year-on-year increase of some 10%. Of the remanufactured and rebuild components, some 58% related to Barloworld remanufactured and rebuild components and 42% related to Caterpillar remanufactured and rebuilt components. In prior years, Barloworld has invested USD11 million and R240 million in facilities in Russia and South Africa respectively. Within the Equipment Mongolia operations, remanufactured and rebuilt parts constitute 48% of total component sales, of which 71% related to Barloworld remanufactured parts and 29% to Caterpillar remanufactured and rebuilt parts. This programme benefits local communities through skills development and job creation, positively impacts our environmental footprint, benefits customers, and enhances the group’s competitiveness and ability to provide innovative customer solutions.

The reporting organization shall report the following information: a. Significant changes to the organization's size, structure, ownership, or supply chain, including: i. Changes in the location of, or changes in, operations, including facility openings, closings, and expansions. ii. Changes in the share capital structure and other capital formation, maintenance, and alteration operations (for private sector organizations). iii. Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including selection and termination.

Integrated Report
Annual General Meeting
Notice Of Annual General Meeting - 9
Consolidated Financial Statements
Review and Reports - 20 Review and Reports - 21

Barloworld’s Motor Retail operations was moved into a joint venture during the 2021 financial period (June 2021) and is equity accounted for in the financial statement and is therefore not included in the consolidated non-financial data.

For comparative purposes, the table reflects the group figures for continuing operations excluding Logistics which is classified as held for sale and not in the consolidated group figures, and Group including Logistics operations.

Group Dashboard
Sec./ Cap. Indicators Group Continuing Operations (Excludes Logistics (Held for Sale) Group including Logistics
(Held for Sale)
    FYE2021 FYE2020 FYE2019 FYE2021 FYE2020 FYE2019
Health and Safety Number of work-related Fatalities 0 0 1 1 2 1
Fatal-injury frequency rate (FIFR)‡ 0.0000 0.0000 0.0072 0.0065 0.0116 0.0047
Lost-time injury frequency rate (LTIFR)#  0.36 0.38 0.29 0.44 0.46 0.47
Severity Index (SI)* 14.44 15.98 14.13 14.50 16.89 14.14
HIV Status (% of SA employees tested who know their status) 51.3% 98.5% 95.6% 51.3% 99.0% 90.0%
HIV positive (% of SA employees tested) 7.28% 7.7% 5.1% 7.28% 6.5% 4.1%
Energy Total Fuel (KL) 6 912 7 873 10 513 44 531 52 702 66 285
Grid Electricity (MWh) 181 060 26 512 35 149 187 439 35 472 49 946
Gas (GJ) 444 926 0 0 444 926 0 0
Coal (Tons) 104 911 0 0 104 911 0 0
Non-renewable Energy (GJ) 3 893 793 379 249 502 722 5 350 062 2 119 291 2 680 447
Non-renewable Energy Intensity^  93.71 11.18 12.47 119.09 56.22 58.92
Renewable Energy – Solar PV (MWh)  1 399 538 599 1 416 556 617
GHG
Emissions
 
Emissions (tCO2e) (Scope 1 and 2) 468 810 44 521 60 892 593 923 194 931 251 283
Emissions Intensity+ (Scope 1 and 2) 11.28 1.31 1.51 13.22 5.17 5.52
Emissions (tCO2e) (Scope 3 – Air Travel) 2 192 4 526 7 883 2 233 4 772 8 399
Water Water Withdrawals (ML) 2 756 349 396 2 819 451 536
Water Withdrawal Intensityπ 66.33 10.30 9.83 0.06 0.01 0.01
Water Recycled (KL) 50 594 86 166 150 807 50 706 86 392 150 974
Percentage water recycled (%) 2% 25% 38% 2% 19% 28%
Waste Disposed through certified waste provider (%) – Solids 100% 98% 0% 97% 0.95 0.00
Disposed through certified waste provider (%) – Liquids 100% 100% 0% 87% 97% 0%

#Lost-time injury frequency rate=                Number of LTIs x 200 000          *SI =        LTI Days lost   
       Total Hours Worked        Number of LTIs   
   
Fatal injury frequency rate=               Number of work-related fatalities x 200 000         
       Total Hours Worked         
 
 ^Non-renewable Energy intensity = GJ/R1m revenue             +Emissions intensity = tCO2e/R1m revenue         
       
 πWater Withdrawal intensity = KL/R1m revenue          **Formal Waste Management Service Providers        


Effective 1 September 2020, Barloworld Mongolia Limited, an indirect wholly owned subsidiary of Barloworld Limited, was awarded the Caterpillar distribution rights for Mongolia and acquired 100% of Wagner Asia Equipment LLC and a 49% share in SGMS LLC. For further detail refer note 20 (Acquisition of Business) in the notes to the consolidated annual financial statements.

Barloworld Limited ("Barloworld") entered into a Sale and Purchase Agreement ("SPA") with Tongaat Hullet Limited on 28 February 2020 to acquire 100% ownership interest in Tongaat Hullet Starch ("Ingrain"). The transaction was completed on 31 October 2020, being the transaction effective date. This purchase is done through Barloworld's wholly owned subsidiary, KLL Group (Proprietary) Limited, which will hold the shares in Ingrain. For further detail refer note 20 (Acquisition of Business) in the notes to the consolidated annual financial statements.

The acquisitions noted above have resulted in changes to the group’s supply chain and operating context in the new financial period, related impacts will be assessed and alignment to the group responsible sourcing practices will be pursued.

For disposal during the financial period, please also refer to note 19. Re-presentations of prior year results of the notes to the consolidated annual financial statements.

The boundary of this GRI response is aligned to the financial consolidation approach to ensure alignment of the consolidated financial information and the consolidated non-financial data including key performance indicators over environmental and natural capitals.

This GRI response is based on continuing operations, unless otherwise specified.

These aspects are covered in the Barloworld 2021 Integrated Report and related disclosures.

The reporting organization shall report the following information: a. Whether and how the organization applies the Precautionary Principle or approach.

Integrated Report
Consolidated Financial Statements
Review and Reports - 5

The group is mindful of the precautionary principle and its related obligations. Our Worldwide Code of Conduct defines foundational principles of responsible corporate citizenship (includes 'Protect the environment' and 'We focus on environmental responsibility and preventing waste'), and structured risk management approach ensure that future risks to the public and the environment from its activities are identified and considered. Activities related to any identified risk are addressed. This applies to all group activities, including building new facilities. The group's leading principals would be mindful of this principle in developing and introducing new products.

The reporting organization shall report the following information: a. A list of externally developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses.

Integrated Report
Annual General Meeting
Notes to the form of Proxy - 13
Consolidated Financial Statements
Directors' report - 5 Review and Reports - 6 Review and Reports - 7 Review and Reports - 16 Accounting Policies - 22

Obligatory

  1. The King Report on Corporate Governance in South Africa (King IV)

Voluntarily in the group

  1. Barloworld became a signatory to the South African Energy Efficiency Accord in 2005
  2. Barloworld is a signatory to the South African National Business Initiative's (NBI) Energy Efficiency Leadership Network's (EELN) Pledge which is also signed by the Department of Energy in South Africa on 25 September 2012 (formally)
  3. Applies the South African Department of Trade and Industry's broad-based black economic empowerment scorecard and relevant Industry Charters on empowerment and transformation
  4. United Nations Global Compact Principles are entrenched within the group through its Values as per the Barloworld Worldwide Code of Conduct, relevant policies and initiatives. Additionally, initiatives are underway to further drive ethical and responsible sourcing within the group.
  5. Initiatives that support our environmental, social and governance aspirations are also mapped to the United Nations Sustainable Development Goals.
  6. Relevant operations within the mining sector subscribe to the South African Mining Charter.
  7. Certain operations have ISO and other related certifications. See schedule of externally certified programmes and coverage.

The reporting organization shall report the following information: a. A list of the main memberships of industry or other associations, and national or international advocacy organizations.


The group or individuals within Barloworld are members of or a signatory to a number of institutional associations, including:

  • ABASA – Advancement of Black Accountants of southern Africa
  • American Chambers of Commerce of Mongolia
  • ASATA, (Association of South African Travel Agents)
  • Australian Chambers of Commerce
  • BLSA – Business Leadership South Africa
  • Botswana Motor Traders Association.
  • BUSA – Business Unity South Africa Environment committee
  • CAIA - Chemical and Allied industry association
  • CILTSA - Chartered Institute of Logistics and Transport
  • CISCO- IT association Network Management
  • COMPTIA Association for IT Professionals
  • Construction and Mining Equipment Suppliers’ Association (CONMESA).
  • Corporate Lawyers Association of South Africa (CLASA)
  • Dealer Councils
  • Diesel and Gas Engine Association of Southern Africa (DAGEASA).
  • Employees are encouraged to belong to their various professional associations such as the SA Institute of Chartered Accountants.
  • Engineering Council of South Africa (ECSA)
  • EWASA – E-Waste Association of South Africa
  • EWT – Endangered Wildlife Trust
  • FFSI - Feta Freight Systems International
  • FIATA - International Federation of Freight Forwarders Association
  • GBCSA (Green Building Council of South Africa)
  • GLN - Global Logistics Network
  • HPCSA – Health Professions Council of South Africa
  • IATA - International Air Transport Association
  • ICIL (ICIL Foundation)
  • Institute of Internal Auditors South Africa
  • IISA – Insurance Institute of South Africa
  • IOD - Institute of Directors
  • IRMSA – Institute of Risk Management South Africa
  • JCCI - Johannesburg Chamber of Commerce and Industry
  • Law Society of Northern Provinces
  • MBSA Master Builders of Southern Africa.
  • Microsoft MCP
  • Mineral Council of South Africa
  • Mongolian Chambers of Commerce
  • Motor Industry Bargaining Council (MIBCO)
  • Motor Industry Ombudsman of South Africa (MIMOSA)
  • NADA (National Automotive Dealer Association)
  • NBI – National Business Initiative
  • PMI - Project Management Institute (International and SA Chapters)
  • RFA - Road Freight Association
  • RIMS – Risk and Insurance Management Society
  • RMI (Retail Motor Industry, Employer structure)
  • RTMS - Road Transport Management Systems
  • SA Chamber of Business. Institute of Quarrying.
  • SAAFF - South African Association of Freight Forwarders
  • SAFCEC (Civil Engineering Contractors).
  • SAIA (South African Institute of Auctioneers)
  • SAICA - South African Institute of Chartered Accountants 
  • SAPICS - The Association for Operations Management in South Africa
  • SAPOA (South Africa Property Owners Association)
  • SAQA – (South African Qualifications Authority)
  • SATSA (Southern African Tourism Services Association)
  • SAVRALA (South African Vehicle Rental and Leasing Association).
  • South African Council for Natural Scientific Professions (SACNASP)
  • South African Institute of Chartered Accountants
  • TBCSA (Tourism Business Council of South Africa)
  • The Compliance Institute of southern Africa
  • The Ethics Institute of South Africa
  • The Institute of Waste Management of South Africa.
  • TOMSA – Tourism Marketing Levy SA
  • World Business Council for Sustainable Development (through NBI)
  • WWF – Worldwide Fund for Nature

For more detail see also: Barloworld Membership of associations &  Barloworld certifications and accreditations coverage.