Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)
• Sustainable Development
• Diversity & Inclusion
• Broad-Based Black Economic Empowerment (B-BBEE)

Environmental Achievements

• Reduced non-renewable energy consumption by 20% year-on-year.
• Reduced emissions (scope 1 and 2) by 21% against 2019.
• Generated over 500 MWh of renewable energy from solar PV installations, avoiding over 500 tCO2e.

Social Achievements

• Achieved 40% women representation in middle management and above.
• Won three Gender Mainstreaming Awards (Gender Mainstreaming Champions, Investing in Young Women, Women Empowerment in the Workplace).
• Launched Barloworld Mbewu, a R30 million fund supporting social enterprises.
• Implemented Khula Sizwe Property Holdings B-BBEE empowerment transaction.

Governance Achievements

• Merged the Audit and Risk Committees.
• Appointed Neo Phakama Dongwana as the first Black woman Chairman.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on business operations and global economy.
• Macroeconomic challenges and geopolitical tensions.
• Political and regulatory uncertainty.
• Volatile commodity prices.
• Talent acquisition and retention.
• Currency and liquidity volatility.

Mitigation Strategies

• Implemented austerity measures (remuneration sacrifice, retrenchments, deferred capex).
• Focused on cash preservation and improved working capital management.
• Integrated Avis Budget Car Rental and Avis Fleet.
• Completed acquisitions of Equipment Mongolia and Ingrain.
• Implemented Barloworld Business System (BBS) for improved efficiency.
• Strengthened balance sheet and liquidity position.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier sustainability requirements
• Focus on black-owned and black women-owned entities
• Barloworld Siyakhula programme

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting operations

Transition Risks

• Regulatory changes, carbon pricing

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: King IV, International Integrated Reporting Framework ( Framework), Companies Act 71 of 2008, Johannesburg Stock Exchange Listings Requirements, Global Reporting Initiative Sustainability Reporting Standards (GRI standards), United Nations Sustainable Development Goals (SDGs), International Financial Reporting Standards (IFRS)

Certifications: 5-Star Green-Star South African certified building (Automotive and Logistics Head Office)

Third-party Assurance: PricewaterhouseCoopers Inc. (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High-efficiency gas generators
• Energy-efficient vehicles
• Renewable energy solutions

Awards & Recognition

• Dow Jones Sustainability Emerging Markets Index constituent
• FTSE/JSE Responsible Investment Index constituent
• FTSE4Good Index Series constituent
• Three Gender Mainstreaming Awards

Environmental Metrics

ESG Focus Areas

• Ethics
• Compliance
• Human Rights
• Sustainability
• Environmental Stewardship
• Climate Change
• Employee Health, Safety and Wellness
• Stakeholder Engagement
• Transformation (Equity, Diversity, and Inclusion)
• Socio-economic Transformation
• Preferential Procurement
• Enterprise and Supplier Development (ESD)
• Women and Youth Empowerment

Environmental Achievements

• Annualised efficiency targets met in FY2023 (related to GHG emissions, energy, and water)
• No work-related fatalities for the third consecutive year

Social Achievements

• 42% year-on-year improvement in the group’s lost-time injury frequency rate to 0.17
• Siyakhula ESD programme disbursed approximately R102 million in FY2023 to over 84 beneficiaries, supporting over 1964 jobs
• Equipment Southern Africa spent R480 million with ≥50.1% black women-owned companies in FY2023
• Barloworld Trust invested R12 million in education and food security
• Almost doubled use of employee assistance programme since new mental wellness services were introduced

Governance Achievements

• All targets for gender-linked and sustainability-linked bonds achieved or surpassed for FY2023
• Improved digitization of ethics call processes for better analysis and proactive interventions
• Good progress made with the percentage of black women in management team in South Africa
• Focus on limiting expatriates and increasing women's representation outside South Africa

Climate Goals & Targets

Environmental Challenges

• Increased mental health challenges among employees since Covid-19
• Climate change impacts

Mitigation Strategies

• Refreshed wellness strategy with a new service provider offering on-site mental and financial wellness services
• Five-year target of a 15% reduction against the 2021 baseline in GHG emissions (Scope 1 and 2) and the intensity of non-renewable energy and municipal water withdrawal

Supply Chain Management

Responsible Procurement

• Preferential procurement approach supporting women and youth-led businesses
• Siyakhula ESD programme

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV Code, United Nations Global Compact Principles, OECD recommendations regarding corruption, Employment Equity Act, Broad-Based Black Economic Empowerment (B-BBEE) Act

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Environmental Stewardship
• Social Responsibility
• Governance
• Human Rights

Environmental Achievements

• Improved non-renewable energy consumption by -1% against the 2021 business-as-usual baseline efficiency target.
• Improved total municipal water consumption (municipal + borehole) by -3% against a business-as-usual scenario, using FY2021 as a baseline.
• Reduced total water withdrawals (municipal & borehole sources) by 3% against prior year.
• 85% of component sales were remanufactured and rebuilt, reducing waste and conserving materials and energy.
• Installation of additional 757 kW(peak) roof-mounted solar PV at the Boksburg Campus, resulting in estimated annual savings of 1MWh and R3m.

Social Achievements

• Launched an integrative, collaborative, and transformative learning experience (SEED Programme) for senior and executive managers focusing on ESG, Ethics and Mental Wellness.
• Continued focus on technical skills upliftment and leadership development programs.
• Implemented the Towers Watson global grading system in all operations, ensuring equity and non-discrimination in remuneration practices.
• Over 98.54% of employees are hired from the respective local communities.

Governance Achievements

• Group Social, Ethics and Transformation Committee (SETC) oversees ESG strategy, management, and performance.
• External Limited Assurance review by PriceWaterhouseCoopers (PwC) on material ESG indicators.
• Updated Policy Management Framework to streamline and standardize governance processes relating to policy development, approval, implementation, and review.

Climate Goals & Targets

Environmental Challenges

• Rapidly rising energy costs, particularly electricity in South Africa.
• Supply chain disruptions.
• Water scarcity in certain regions (e.g., Mongolia).
• Instances of non-compliance with effluent discharge parameters.

Mitigation Strategies

• Implementation of energy-saving initiatives (solar energy, energy-efficient lighting, fuel-efficient vehicles, driver training).
• Development of alternative sourcing strategies.
• Exploration of water treatment technologies and wastewater treatment plants.
• Processes, including monitoring and filtration, are in place to help bring effluent into permitted levels.

Supply Chain Management

Supplier Audits: 561 (6%) of 10,080 suppliers classified as high-risk; 4,929 (49%) suppliers signed the Barloworld Supplier Code of Conduct.

Responsible Procurement

• Barloworld Worldwide Code of Conduct
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Increased cost base due to reliance on fossil fuel-based technologies.

Transition Risks

• Regulatory changes, market shifts towards lower-carbon solutions.

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001 (various sites)

Third-party Assurance: PriceWaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Remanufactured and rebuilt components; energy solutions (biogas and solar photovoltaic).

Awards & Recognition

• Not disclosed