Overview

Eqstra manages sustainability in an integrated manner, with accountability for the day-to-day management of sustainability issues resting at divisional level. A dedicated sustainability manager or a senior manager covers sustainability as part of their portfolio. At group level, accountability for sustainability rests with the executive: risk, sustainability and investor relations, reporting to the chief executive officer.

The group has identified key focus areas for group-level reporting, which include both financial and non-financial issues and are focused on the three primary sustainability pillars: human capital, financial capital and natural capital.

Two major focus areas are to develop, secure and retain skilled labour and managing our carbon footprint, including the impact of climate change.

Develop, secure and retain skilled labour

What is the impact on the group?

The ability of the group to achieve its business strategy is dependent on the availability of skilled employees, and in particular technically-skilled employees who are able to operate and maintain the full range of mobile equipment which the group owns and manages. Without these skills, the group will not be able to service its markets adequately, and long-term profitability will be compromised.

What is the impact on society?

There is an urgent need in South Africa for technical skills development. The country’s economic growth potential can only be realised if these key skills are available. Learners are prevented for a range of reasons from achieving the levels of competence that is required. In some cases this is due to the lack of equipment and support for technical schools and colleges. Payment of fees or hostel fees can be an issue for some learners and in some cases secondary and primary education has not been adequate in preparing them for tertiary education.

What is the group’s response?

During the year the group introduced “Eqstralution”, a programme of sustained grassroots support for primarily previously disadvantaged learners in partnership with selected technical high schools and secondary schools, linked to future work opportunities for graduates in areas relevant to the group. The group invested R54 million in training and development for employees in the 2011 financial year and some R1.7 million in education and technical skills development through its socio-economic development programmes. It aims to strengthen these programmes further in the 2012 financial year.

Managing carbon footprint

What is the impact on the group?

The group deals almost exclusively in mobile capital equipment that consumes fossil fuels. Constraints surrounding the use and cost of fossil fuels can therefore have a potential impact on its markets as clients seek to conserve resources. Mitigation of the impact of climate change is also required in the Contract Mining and Plant Rental division, where disruptions due to changing rainfall patterns are becoming more prevalent

What is the impact on society?

Irrespective of the direct financial impact, the group and its clients have a moral and social responsibility to reduce its fossil fuel consumption, thereby contributing to efforts to mitigate the impact of climate change through the reduction of emissions due to fossil fuel usage.

What is the group’s response?

Where possible, the group deals in equipment with the latest technology which has the potential to reduce its carbon footprint. In the Construction and Mining Equipment Distributorships division, for example, knowledge relating to compliance with new tier four emission standards is already being acquired to ensure that the division has in place skills and technology to support these vehicles. Eqstra FlexiFleet, a business unit in the Passenger and Commercial Vehicles division, has become carbon neutral during the period under review through its carbon sequestration projects. In the Contract Mining and Plant Rental division efforts are being made to mitigate the impact of changing rainfall patterns, for example, through upgrading haul roads and improving operator training.