Overview
• Commitment entrenched in values, policies and procedures
• Focus on both internal activities as well as products andsolutions provided to customers
• Commitment to measuring, reporting, and managingenvironmental impacts
• Commitment to reducing and offsetting negativeenvironmental consequences, where possible
• Ongoing review and assessment of risks and opportunities

Barloworld recognises that its activities and customer solutions have certain adverse environmental impacts. It is committed to good environmental stewardship and minimising its total environmental impact which includes its carbon footprint. Understanding that its customer solutions affect the environment and have concomitant negative consequences for climate change, the group is committed, together with its principals, to offering customer solutions which mitigate these impacts. The group endeavours to support customers in their efforts to reduce the negative impacts of their commercial activities.

Due to the nature of its business activities and the predominantly urban locations of its operations the group is not required to apply the precautionary principle to decision making although it remains mindful of the central tenets of the principle.

Climate change has exposed the group to various grades of physical, regulatory, financial and reputational risk, as well as certain opportunities. These risks and opportunities have been publicly disclosed in the group’s CDP7 response.

As a global company, Barloworld acts on its concerns about the environment by partnering with organisations such as the UN Global Compact (Principles 7 to 9), the World Wide Fund for Nature (WWF), the National Business Initiative (NBI) and the Endangered Wildlife Trust (EWT). Barloworld is a signatory of the Energy Efficiency Accord (EEA) with the Department of Minerals and Energy in South Africa, and is also a member of the NBI’s Energy Efficiency Committee, through which the group is linked to a range of energy and climate change initiatives.

In addition to the general commitment to the environment contained in the group’s code of ethics, strategic framework and 10 Pillars of Sustainability, its approach to environmental management is informed by:

• Barloworld’s Environmental Policy which sets the overall standards and expectations throughout the group and includes the organisation’s
  commitment to duty of care, waste avoidance and minimisation of use of natural resources;
• Barloworld’s Good Practice Guidelines On Environmental Management for Non-ISO 14001 Certified Operations which cover all Barloworld operations;
• Barloworld’s Climate Change Policy which outlines the group’s approach and commitments in this regard; and
• ISO 14001 is currently applicable to Avis and Budget operations in Norway and Sweden.

Barloworld’s Environmental Policy, Climate Change Policy and Guidelines for Non-ISO 14001 Certified Operations can be accessed on our website: www.Barloworld.com/content/ sustainability.

The group did not receive any fines for non-compliance with environmental laws and regulations during the year. In South Africa, two notices were received for high mineral oil content in a washbay discharge system. This matter has been addressed.

Environmental expenditure is incorporated into development and construction activities to ensure responsible environmental stewardship, compliance with environmental legislation, internal standards and good practice.

Additional aspects cover ongoing maintenance expenditure, principals’ requirements and ISO systems. It also includes water recycling and waste disposal initiatives as well as carbon offset programmes. These are not reported separately but specific aspects are highlighted in the report where appropriate.

Nature of products and services
• Commitment to provide leading environmentally soundsolutions to customers which will assist them to achieve their
   sustainable development objectives
• Original Equipment Manufacturers’ (OEMs’)/principals’ focuson developing appropriate and leading technologies
• Internal activities measured and reviewed
• Carbon emissions are an area of focus

Barloworld is committed to providing products and leading customer solutions that enable customers to achieve their sustainable development objectives including environmental stewardship.

New technologies employed in the integrated customer solutions which Barloworld operations offer are resulting in enhanced energy and carbon efficiencies, as well as addressing the needs of a wide range of stakeholders.

An example is Caterpillar’s innovative ACERT® technology which was developed to meet American and European regulations restricting harmful emissions from diesel engines utilised in both “on highway” and “off-road” applications.

In Barloworld Automotive, the motor retail operations represent leading global vehicle manufacturers which are continuing to develop and introduce energy efficient vehicles, low emission vehicles, hybrid vehicles and electric vehicles.

Also, offered in car rental fleets are hybrid and flexi-fuel vehicles such as the Toyota Prius, SAAB Bio-Power, Volvo V50 and V70 Flexi-fuel and Mercedes Benz NGT Blue Efficiency vehicles. Diesel and bio-fuel cars are becoming far more prevalent in car rental fleets. All fleets include the latest vehicle models and technology which results in general improvement in energy efficiency and emission reductions.

Barloworld Logistics provides, through the CAST-CO₂ module of its leading supply chain design system, provides the ability to calculate the carbon emissions from any supply chain model and therefore to design supply chains with modes, loads, inventories and routes which optimise carbon emissions.

Logistics is also at the forefront of designing sustainable road transportation solutions which provide both commercial and environmental benefits.

The handling division’s principal, Hyster, has launched a new electric truck range, emphasising lower whole-life costs and emissions. Looking forward, Hyster is facilitating the development of hydrogen fuel cells and lithium ion batteries. Hydrogen fuel cells enable a zero-emission lift truck with very short refuel times, while lithium ion batteries promise a zero-emission lift truck with long battery life and zero battery maintenance.

The principal environmental impact of transporting products and services relates to the consumption of fossil fuel, consequent greenhouse gas emissions and the associated risks.

Principals’ standards
• Represent leading global Original Equipment Manufacturers(OEMs)
• OEM’s standards and commitments reflected in products,technologies and services offered by Barloworld
• OEM’s targets and objectives provide a framework and focusattention

In representing major international brands such as Caterpillar, Hyster, Avis, Budget and other world-class equipment and motor vehicle manufacturers, Barloworld is part of supply chains which embrace values and standards in the manufacture, sale, service and disposal of products that reflect international best practice. Barloworld is committed to working with its suppliers to ensure that their requirements are met, including environmental objectives, and their competitive position enhanced.

Indicators and collection systems
• Focus on material aspects
• Entrenched monthly, quarterly and annual reporting

The group has identified indicators which it believes are relevant and material to its activities, given its retail and after-market service nature. The scope of Barloworld’s data monitoring and environmental management includes:

• Energy consumption
• Carbon emissions (Scope 1 and Scope 2)
• Emissions intensity
• Water usage, source and recycling
• Materials consumed
• U se of recycled input materials
• Waste (hazardous and non-hazardous) and destination or disposal methods
• Non-compliance/fines

The relevant data on energy, emissions, water, materials waste and occupational health and safety is collected throughoutthe group. Appropriate structures and teams in all divisions are responsible for management systems, data collection and reporting.

Targets
• Signatory to the Energy Efficiency Accord
• Aspirational energy and emissions efficiency targets set forthe group
• 2009 set as an appropriate baseline year
• Targets to be reviewed “post Copenhagen”
• Commitment to report progress against targets

Barloworld is committed to setting sensible targets for improved energy efficiency in respect of fossil fuels and the resulting greenhouse gas emissions.

Pending clarity from the United Nations Climate Change Conference in Copenhagen scheduled for December 2009, and any consequent national or industry targets being set, the group is guided in South Africa by the content of the Energy Efficiency Accord with the Department of Minerals and Energy in South Africa which reflects the South African objective of a national final energy demand reduction of 12% by 2015 off a 2000 baseline year.

In order to make this a more tangible objective, the group has set an overall aspirational target of a 12% efficiency improvement of its non-renewable energy consumption by 2014 off a 2009 baseline year. This applies to petrol and diesel as well as to purchased electricity generated by fossil fuels.

The period coincides with the group’s five year strategic planning horizon and indicative consequences can be internally projected using anticipated turnover levels as a proxy for business activity.

The diverse and divisional nature of the Barloworld group requires that specific energy consumption targets are set in the respective divisions based on their relevant operational and industry specific requirements as well as the perspective of their global region of activity.

The group’s emissions predominantly result from the consumption of fossil fuels and the purchase of fossil fuel generated electricity. Accordingly, the group has adopted a similar approach in respect of its emissions targets.

Targets will be subject to ongoing review during the year and will be incorporated into executive scorecards for 2010.

Energy consumption
• Aspirational targets set
• Measurement, reporting and management of energy consumption
• Third party assurance of consumption levels
• Commitment to improve efficiencies of consumption of nonrenewable fossil fuels
• Identification of related risks and opportunities
• Environmental and commercial benefits

Barloworld is committed to the measurement, reporting and efficiency improvements of its consumption of non-renewable fossil fuels. The group understands the environmental and commercial benefits of such commitment. Over the past years the group has implemented processes and systems to record such data and to ensure its measurement is in accordance with related initiatives such as the Greenhouse Gas Protocol so that the consequent emissions are properly reported.

Measures in place and in planning around the globe, such as increased fuel tariffs, electricity surcharges and carbon taxes, will profoundly alter approaches to the sourcing, cost and consumption of energy. Electricity supply constraints and significant price increases in South Africa have been identified as risks to our business and those of our customer base. These also present opportunities for our various divisions which are being investigated and pursued. The possible introduction of the Power Conservation Programme in South Africa is an example of anticipated energy reduction measures that may be introduced. In response, the group is closely monitoring its energy costs and consumption and implementing appropriate energy efficiency improvement measures. It is also actively promoting customer solutions that address these aspects and identifying related business opportunities.

Only internal energy consumption is reported.

The general decline in year on year fuel consumption is primarily attributed to reduced business activity although attention to energy efficiency also supports this trend.

Petrol and diesel consumption (million litres)
Division	2009	2008	2007
Automotive	13,4	13,9	12,5
Equipment	10,0	9,7	8,1
Handling	5,5	6,4	4,8
Logistics	14,4	17,1	9,6
Corporate	0,02	nr	nr
Total	43,32	47,1	35,0
The abbreviation ‘nr’ stands for ‘not reported’

Electricity consumption (MWh)
Division	2009	2008	2007
Automotive	43 241	42 297	56 166
Equipment	25 644	23 785	19 200
Handling	9 094	8 458	8 588
Logistics	10 493	4 913	nr
Corporate	810*	4 699	5 116
Total	89 282	83 552	89 070
* 2009 Corporate only. Proportional consumption reallocated to resident tenants at Barlow Park. The abbreviation 'nr' stands for   'not reported'

In addition to petrol and diesel the group also consumed 225 tons of Liquid Petroleum Gas (LPG) and 101 tons of Compressed Natural Gas (CNG) or Liquid Natural Gas (LNG).



Group electricity consumption indicates an increase of 6.9% year-on-year. A portion of this increase can be attributed to a much improved universe and better data collection.

Electricity consumed at Barlow Park reported under corporate in previous years has been reallocated to its tenants on a per capita basis for 2009.

Logistics’ reported electricity consumption, for example, has increased by 114% although some 35% of this increase is attributable to an allocation in respect of their occupation of leased facilities at Barlow Park.

All operations are committed to the optimisation of their energy consumption and a variety of initiatives are underway or in planning across the group. These include efforts to reduce air travel by using video-conferencing, retro-fitting energy efficiency systems and timing switches and improving consumption metering at their facilities. Also addressed are efficient lighting systems and the replacement of inefficient lighting equipment. New facilities will incorporate appropriate heating, ventilation and air conditioning (HVAC) systems.

Initiatives such as these have led to the conceptualisation of a “green buildings” programme which will result in generally more resource-efficient facilities across the group. The recently established Barloworld Power division will drive and coordinate these activities internally as well as offering leading energy solutions, including efficiency and renewable aspects, to customers.

Greenhouse gas (GHG) emissions
• Measurement, reporting and management of Scope 1 and Scope 2 emissions
• Third party assurance of carbon emissions calculated according to the GHG Protocol
• Commitment to minimise and offset carbon footprint where appropriate.
• Internal operations of car rental in South Africa and Norway are carbon neutral
• Environmental and commercial benefits
• Aspirational emissions efficiency targets set

Barloworld appreciates the causal link between greenhouse gas (GHG) emissions and climate change, and the forecast for the increasingly negative effects of climate change on the environment. Given the nature of Barloworld, the material sources of its GHG emissions are the direct consumption of fossil fuels (Scope 1) and its consumption of purchased electricity generated from fossil fuels (Scope 2).

During the year, the group progressed its programme to accurately record and report its emissions and has calculated its GHG inventory in terms of the GHG Protocol Corporate Standard (www.Barloworld.com).

Although Barloworld’s operations are considered by the Johannesburg Stock Exchange’s Socially Responsible Investment Index (SRI) to have a low impact on climate change, the group is committed to achieving greater energy (fossil fuel) efficiencies in the day-to-day activities of its operations and consequently, improving its emissions efficiency.

CO2e is the universal unit of measure used to indicate the global warming potential of the main greenhouse gases.

Barloworld also works to raise awareness amongst its employees through communication and training, and supports the efforts of civil society to educate and inform the public on the importance of adopting environmentally sustainable lifestyles. Barloworld’s car rental operations in Norway remain carbon neutral (excluding rental fleets and licensee operations). Approximately 62% of the electricity for Avis and Budget car rental operations in Scandinavia is either wind or hydro-generated. Avis and Budget in Norway and Sweden offer their customers the opportunity to purchase carbon credits to offset the emissions from their vehicle rental transactions. On 1 September 2009 Avis Rent a Car became the first rental fleet in South Africa to be accredited CarbonNeutral® for internal business carbon emissions from fuel and electricity usage.

Barloworld has adopted the following approach to managing
its emissions:
• Measure the emissions relating to particular activities, then consider the following strategies:
  o Avoid emission producing activities;
  o R educe emissions of unavoidable activities;
  o Switch to appropriate energy reduction technologies, where feasible; and
  o Offset remaining emissions from commercial activities where appropriate.

	Emissions (CO2e tons)
Division	2009	2008	2007
Automotive	82 388	81 126	79 346
Equipment	52 063	49 296	37 462
Handling	20 219	22 355	18 880
Logistics	50 700	53 592	22 869
Corporate	1 019	5 639	4 435
Total	206 389	212 008	162 992

Group carbon emissions year-on-year have reduced by 2.7%. This decrease has been attributed to a reduction in business activity and the corporate electricity reallocation to Barlow Park tenants. Improved measurement has resulted in absolute emission reductions trailing business fall-off. Focus on fuel efficiency and efforts to reduce energy consumption during the year supported this result.

The Barloworld group participates in the Carbon Disclosure Project (CDP), which was launched in 2000 to collect information that could be used to motivate investors, corporations and governments to take action to prevent climate change. Data collected from some 5 500 of the world’s leading companies and disseminated by the CDP provides valuable insights into the risks and opportunities presented by climate change and a post-carbon era. Increasingly, evidence points to the shift of consumers and investors to companies who limit their carbon footprints and see opportunities in a carbon constrained world. Barloworld’s CDP7 response can be viewed on website: www.cdproject.net.

Scope 1 and Scope 2 emissions (CO2e tons)
	2009		2008
Division	Scope 1	Scope 2	Scope 1	Scope 2
Automotive	33 938	48 450	35 173	45 953
Equipment	27 153	24 910	26 367	22 929
Handling	14 356	5 863	16 908	5 447
Logistics Corporate	39 747  47	10 953   972	47 697 nr	5 895  5 639
Total	115 241	91 148	126 145	85 863
The abbreviation ‘nr’ stands for ‘not reported’

Emissions per energy source (CO2e tons)
Year	Diesel	Petrol Heavy	Oil	LPG	CNG/LNG	Electricity
2008	84 358	40 533	1 036	169	49	85 863
2009	77 861	36 670		554	156	91 148

Water
• Appreciation of scarcity and limitation of this resource
• Measurement, reporting and management in place
• Extensive recycling initiatives in group
• Environmental and commercial benefits

Barloworld appreciates that water is a scarce resource. The group obtains the majority of its water from local municipal and local government water supply systems. The automotive division is the largest consumer of water in the group due to the washing of its car rental fleets and motor retail activities.

Avis Rent a Car South Africa has invested some R1.9 million in its water recycling programme at its three main depots and estimates that it will save around 95 million litres of water per annum. Equipment Iberia invested R3.7 million in new water treatment plants during the year.

Water
• Appreciation of scarcity and limitation of this resource
• Measurement, reporting and management in place
• Extensive recycling initiatives in group
• Environmental and commercial benefits

Barloworld appreciates that water is a scarce resource. The group obtains the majority of its water from local municipal and local government water supply systems. The automotive division is the largest consumer of water in the group due to the washing of its car rental fleets and motor retail activities.

Avis Rent a Car South Africa has invested some R1.9 million in its water recycling programme at its three main depots and estimates that it will save around 95 million litres of water per annum. Equipment Iberia invested R3.7 million in new water treatment plants during the year.

	Water consumption (million litres)
Division	2009	2008	2007
Automotive	490	489	542
Equipment	271	180	115
Handling	46	47	43
logistics	39	37	0.2
Corporate	21	22	10
Total	867	775	710.2

The group remains committed to reporting waste by weight in order to ensure consistency and comparability. However, until systems and processes have been sufficiently refined and adapted, certain waste will still be reported in units.

Although waste has been reported over the past years, in light of the revised reporting structure, 2009 will form the baseline year going forward.

Biodiversity
• Majority of operations are located in established urban locations with limited impact

Barloworld operations do not directly affect any terrestrial, fresh water or marine environments. Since sites are primarily in industrialised and urbanised environments, they do not impact on protected areas or areas which have a high biodiversity value. However, operations are situated adjacent to protected areas: a vehicle maintenance and repair facility operates outside the Kruger National Park in South Africa, and a handling USA branch at Little Rock, Arkansas, USA is adjacent to protected wetlands.

The handling site is 14 164m2 in extent. These operations have not negatively affected these areas. In the circumstances, the group has not needed to address any biodiversity protection or rehabilitation matters during the year, nor have its activities impacted on threatened species or their habitats.