Report scope and boundary: 3.5 - 3.11

  • 3.5 Process for defining report content.

    Integrated Report:
    Corporate Governance:

    Numerous factors, both internal and external, encompassing regulatory, economic, social, political, global influences, stakeholder expectations, amongst others, have an impact on our organisation and our strategic imperatives. These considerations are brought to bear on the identification, prioritisation and ratification of issues deemed material to Barloworld’s value creation activities. These matters are deliberated at both operational and board levels, feeding into our strategic framework, strategic focus areas (SFAs) and the identification of risk impacts on the organisation.

    The Barloworld approach to determining matters to report on is on-going engagement, throughout the year, informed by our risk identification process and stakeholder engagement to prioritise issues.

    Similarly the identification and prioritisation of report content and associated key messaging are guided by processes that seek to ensure that those issues deemed to be material are effectively communicated

    These influences and initiatives are quantitative and qualitative in nature and cover internal and external perspectives. Issues are identified by considering meeting agendas and minutes, policies, our values, ethics and codes of conduct, strategies, targets, risk management processes and employee surveys. External identification considers: stakeholders’ interests along with leading reporting initiative frameworks such as CDP’s Climate Change and Water responses, the Johannesburg Stock Exchange’s Socially Responsible Investment Index (JSE SRI) requirements (this changed during the period to the FTSE/JSE Responsible Investment Index), the United Nations Global Compact (UNGC), Dow Jones Sustainability Emerging Markets Index as well as peer reporting, media requirements, regulation and expectations. These are compared and then prioritised based on internal and external assessments.

    In general, there is alignment between issues raised internally and those raised through external processes, although emphasis does vary in some cases. Currently validation is essentially an internally orientated process, with authorisation by various board subcommittees and ultimate sign-off by the Audit committee and Barloworld board. While our materiality framework is still evolving, we believe it is sufficiently robust to instil confidence in the report’s content, particularly when read in conjunction with the remainder of our annual reporting.

    Given the group’s focus on engaging with employees, shareholders, customers and principals/service providers, Barloworld is aware of the primary issues governing these relationships, what topics are important to these stakeholders, how to prioritise them, and hence what the focus for its reporting should be.

    A number of processes are followed in defining the report content. These include interactions with the operations, executive committee approval of material issues as well as tabling identified material issues at the Risk and Sustainability committee as well as the group Audit committee.  Through these processes, the group prioritises report content and validates the importance of these issues. The principle of materiality guides the prioritisation of topics identified during the stakeholder engagement process.(See GRI 4.4, 4.14 and 4.17).

    Barloworld uses the GRI guidelines as a management tool. It endeavours to understand its position relative to all indicators but is mindful that not all indicators are of equal concern to the organisation or its stakeholders. Nevertheless, the group believes that interrogating all indicators is important in the context of its value-creation approach and that of responsible corporate citizenship.

    In determining the materiality of issues, the nature of its response and content of this report, the group considers:

    • Its significant economic, environmental and social impacts
    • Information that would substantively influence the assessments and decisions of stakeholders
      Its long-term strategy as well as short-term economic impact on its stakeholders and how its performance will affect them. Refer also to:
    • Its commitments in terms of its policies, undertakings and the external regulatory environment, including the listing requirements of relevant stock exchanges
    • The activities of peers and trends in relevant industries, as well as best practice
    • Issues and expectations emerging from its various stakeholder engagement activities
    • General expectations of relevant emerging codes and reporting frameworks, including the Global Reporting Initiative and appropriate indices such as the FTSE/JSE Responsible Investment Index. Where appropriate, these are factored into operational management systems, discussed with relevant stakeholders and addressed in reports
    • Relevant media exposures and reporting
    • The three step process for defining report content as recommended by the GRI; identification, prioritisation and validation

    The risk and sustainability committee considers the materiality of non-financial indicators and selects those for external assurance. A comprehensive assurance matrix covering issues referenced in our integrated reporting which is aligned to the GRI reporting framework, is under review. The group’s stakeholder engagement initiatives identify and highlight material issues which influence and inform the group’s reporting, strategy and operations as well as prioritising issues for reporting purposes

    Barloworld also prioritises report content by assessing the year under review and future strategy to provide a forward perspective in order to decide which aspects require more detail and attention than others based on the framework used in determining materiality across the environmental, social and economic spectrum.

    The group is committed to ensuring credibility, clarity, completeness and comparability of reported information and uses the Global Reporting Initiative (G3.1) indicators to ensure alignment with global reporting practices. As this is the final report in terms of the G3.1 guidelines, where possible the responses will also be referenced to the relevant G4 indicators. Relevance and materiality of reported data is continually reviewed in light of the group’s structure, activities and stakeholder engagement. Quantitative and qualitative aspects are considered in the assessment of materiality.

    Organisational boundaries for collecting data mirror those used for financial purposes to align our financial, environmental and social reporting. Data is collected at operational level and consolidated at divisional and group levels. Reporting structures and boundaries for greenhouse gas emissions are also aligned with the Greenhouse Gas (GHG) Protocol Corporate Standard. We classify the emissions from customer use of our rental fleets as scope 3 emissions.

    Material aspects

    The group reports on a wide range of aspects. These include aspects and themes which are aligned its strategic focus areas, those covered in its Worldwide Code of Conduct and Code of Ethics, and aspects included in the GRI reporting guidelines. Not all aspects are regarded as being equally important, although all are regarded as being relevant to the group’s 2020 vision and strategic ambitions.

    Economic, environmental and social aspects are reported. These include:

    • Economic
    • Environmental
    • Social
      • Labour Practices and decent work
      • Human rights
      • Society
      • Product responsibility

    Material environmental aspects include non-renewable energy efficiency, greenhouse gas emissions, water stewardship and waste (recycling, rebuild and remanufacture & responsible disposal).

    A full list is reflected in our GRI Index.

  • 3.6 Boundary of the report (eg, countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).

    Integrated Report:

    Barloworld’s integrated reporting includes a printed 2015 Integrated Report and 2015 Annual General Meeting Booklet, supplemented by online only versions of a 2015 full Remuneration report, a 2015 full Corporate Governance report, a full set of 2015 Consolidated Annual Financial Statements and a full set of responses to the GRI Sustainability Reporting Guidelines (G3.1). These reports are aligned, and complementary.

    The Integrated Report and related reporting covers the performance of Barloworld Limited for the financial period of 1 October 2014 to 30 September 2015 in all the 22 geographical in which the Barloworld group and its subsidiaries operate. Associates and joint ventures are equity accounted. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. There are no other entities over which the group has significant influence that it believes should be included in the report. Both financial and non-financial data are aligned to the same financial reporting period allowing for comparability of performance data.

    Barloworld has embraced the principle-based framework of integrated reporting giving perspective to broad stakeholder interests; and the report is guided by various codes and standards, on the material matters affecting the various stakeholder groups.

    In addition to the International Financial Reporting Standards (IFRS), and the King Report on Corporate Governance for South Africa (King III), Barloworld uses the Global Reporting Initiative’s Sustainability Reporting Guidelines (G3.1), the Greenhouse Gas (GHG) Protocol (Corporate Standard) and the International Integrated Reporting Framework. Where relevant, the outcomes of stakeholder engagement processes are used as reference points

    Barloworld’s integrated reporting provides a comprehensive perspective of past and current performance, while giving sight of future prospects; and addresses the short, medium and long-term account of capitals employed in the value creation activities.

  • 3.7 State any specific limitations on the scope or boundary of the report.

    Integrated Report:

    Generally corporate performance data and information are provided on all material aspects of the group and its value creation activities without specific limitations. Any limitations will be disclosed in the relevant indicator

    For more detail see also LA 7.

  • 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organisations.

    Integrated Report:
    Consolidated Annual Financial Statements:

    The report covers the activities of the Barloworld group, including all subsidiaries for the financial year ended 30 September 2015. The consolidated data incorporates the company and all entities controlled by Barloworld as if they are a single economic entity. Associated and joint ventures are equity accounted.

    Comparable performance data and information is provided on all material aspects of the group and its value-creation activities without any specific limitations
  • 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

    Integrated Report:
    Consolidated Annual Financial Statements:

    Organisational boundaries for collecting data mirror those used for financial reporting purposes to align financial, social and environmental reporting. Data is collected at operational level and consolidated at divisional and group levels. Reporting structures and boundaries for emissions are also aligned with the Greenhouse Gas (GHG) Protocol Corporate Standard (see Barloworld website for emission factors used). The group classifies the emissions from customer use of its rental fleets as scope 3 emissions.

    The group has its own protocols in place for reporting greenhouse gas emissions, water use and Lost-time injury frequency rates (LTIFR).

  • 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.

  • 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

    Integrated Report:
    Consolidated Annual Financial Statements:

    There were no material changes in approach within the Group

    Other businesses disposed of during the 2015 financial year

    • Logistics business in Spain
    • Sea Air Transport in Germany
    • Agriculture business in Russia

    The following businesses were acquired during the 2015 financial year

    • The GM Ferndale dealership in the Western Cape in December 2014
    • Tanzuk Limited an Avis Fleet operation in Tanzania in November 2014
    • Tronix a business to enhance our fleet management systems in February 2015
    • The remaining 74.9% in Re Ethical Engineering business in April 2015