Our business

About Barloworld Creating sustainable value Our business strategy How we create value Key features of our performance against strategy in 2021 Our business model The role of the Barloworld Business System in creating value Our external operating environment Risks and opportunities Our stakeholder relationships

Our stakeholder relationships

The purpose of our stakeholder management is to deliver value for stakeholders and contribute meaningfully to the societies in which we operate. Our ongoing engagement with each group of stakeholders is designed to address their needs and expectations.

Our approach

We adopt a consultative approach to stakeholder engagement, with the aim of developing and achieving an accountable and strategic response. We consider stakeholder trust and confidence in our group to be fundamental to the sustainability of our business.

Our approach to engagement

While our approach to engagement has always included our corporate website, our interim and annual reporting, electronic announcements, which include the Stock Exchange News Service (SENS), previously we focused on one-on-one, face-to-face engagements with our key stakeholders and roadshows whenever possible. The Covid-19 pandemic changed this with online electronic engagement becoming the norm. Hopefully, we will start to see a return to face-to-face engagement in the near future.

Materiality

Through an annual consultation process with our stakeholders, both internal and external, we determine what is material with regard to the needs and expectations of both the group and its stakeholders. Recent events, including the Covid-19 pandemic, have resulted in changing stakeholder expectations placing an increasing focus on expectations around the social roles of corporates and a broader approach to shared value, which require addressing through our role as a responsible corporate citizen.

Responsibility for stakeholder engagement

Responsibility for stakeholder relations is delegated to group functions and our business units. The group ensures that appropriate stakeholder consultation policies, practices and reporting procedures are in place in order to:

establish clear accountability for effective stakeholder engagement
comply with relevant laws governing stakeholder relationships and the various standards and codes of practices to which Barloworld subscribes
promote awareness in our operations and functions of the importance, value and methodologies for stakeholder consultation and relationship management, underpinned by adherence to the principles of inclusiveness, materiality and responsiveness.

The sustainable value we create for our key stakeholders through commitment to being a responsible corporate citizen is addressed in the Creating sustainable value section of this report.

Material matters

Sustainable financial returns
Progress with optimisation of existing businesses
Implementation of disposals
Integration of new acquisitions
Acquisitive growth strategy
Dividend performance
ESG performance

Value added

Increase in NAV
Strong balance sheet
Dividend payments
Reduced operating costs
Acquisitive growth bringing positive contribution to group performance
Share price performance

^LA PwC Limited Assurance

Material matters

Safety, health and wellness
Open and transparent leadership engagement
Fair remuneration and effective performance management
Diversity and inclusion
Career development and opportunities

Value added

Contributing to the overall wellness
of our employees during the pandemic
Improved employee engagement
Recognising and rewarding winning behaviours
Good progress with diversity and inclusion and recruiting to achieve diversity and inclusion
Learning, coaching and developing
to unleash employees’ full potential

Material matters

Impact of Covid-19 on product availability and our ability to operate
After sales support
Customer service that delights
Pricing
Availability of technology and digitisation for increased efficiencies and service delivery
ESG performance

Value added

Innovative solutions to protect Car Rental and Leasing from impact of Covid-19 and provide customers
with value for money
Innovative solutions to reduce our impact on the environment
After sales support

Material matters

Efforts to limit Barloworld’s environmental footprint
Social investment
Business transformation
Preferential procurement opportunities
Inclusion

Value added

Transformation through the establishment of Khula Sizwe Property Holdings
Investment in SMMEs through Barloworld Siyakhula enterprise and supplier development programme
Preferential procurement spend with B-BBEE businesses
Driving economic sustainability, transformation and growth of social enterprises through Mbewu
Focus on addressing education needs and food security through Barloworld Trust

Material matters

Ability of partners to provide products with a reduced impact on climate change
Ability of partner delivery not to be impacted by supply challenges during Covid-19
Payment and contractual terms
Sustainability of relationships
Value-added by partnerships
Business resilience and sustainability
Procurement opportunities
Market and industry developments

Value added

Opportunity for both partners to
grow through beneficial partnerships
Opportunity through partnerships
to expand geographically
Lengthy enduring partnerships provide ongoing value to both parties
Extensive knowledge of markets

Material matters

Compliance with all relevant legislation and regulations in the countries in which we operate
Responsible taxpayer
Governance demands
Role as responsible corporate citizen

Value added

Contribution to the economies of the countries in which we operate through the taxes and wages we pay
Provision of employment opportunities
Investment in communities
Preferential procurement
Investment in skills development