2018 REPORT SUSTAINABILITY - Isuzu Motors South Africa's - Amazon AWS
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Isuzu Motors South Africa's Isuzu Motors South Africa Sustainability Report for 2018 Executive Committee ** Dear Valued Stakeholder, Ethics committee: Yoichi Masuda Chairman It is with great pleasure that I introduce our very first sustainability report as Isuzu Motors South Africa to you. This * should provide you with a good overview of who we are, what Michael Sacke we stand for and where our journey will take us to next. Youichi Masuda Chief Executive Officer and Managing Director We have only been operating as Isuzu Motors South Africa Senior Executive Officer for since January 2018 and I am proud to say that during a very Isuzu Motors Limited and Hiroaki Sugawara Tomoyuki Yamaguchi Mitseru Yageta Senior Vice President Isuzu Vice President short period of time we have moved fast to ensure that we are Chairman of the Isuzu International Liaison: Isuzu International Liaison Group Chief Product and Sales Corporate Operations Financial Officer tuned into the needs of our partners, while at the same time Motors South Africa Board comprehending the challenges in the environment in which we operate. * Craig Uren Our overarching goal is to ensure that our business is Executive Officer Sales, Service sustainable and able to grow in the long-term, thus ensuring and Marketing that we positively impact upon our entire value chain from Johan Vermeulen Dominic Rimmer Loren Meyer Denise van Elvis Hermans Catherine Campbell Huyssteen employees, dealers, suppliers and customers to the community Executive Manufacturing Executive Technical Chris Jonck Chief Information Executive Director Human Capital Executive Finance Executive Corporate in which we operate. In fact, Isuzu's decision to invest in South and Supply Chain Services Executive Officer Affairs, Business Strategy and Legal Africa has saved 1000 employee jobs, an estimated 4000 jobs Elvis Hermans After Sales and Joint Ventures across our network of 108 dealers in Sub-Saharan Africa, and Senior Vice President, ** Isuzu Motors South Africa Non Executive Director * Isuzu Motors South Africa Director numerous others within our supplier base of 430 direct and Human Capital and indirect suppliers. Corporate Services We are very grateful to all our partners, including the South African government, who have supported us in getting this far. We recognise that success is not achieved by going at it alone, but rather by building strong partnerships which are based on transparency, trust, commitment and delivery. As we look at the road ahead we remain steadfast in our Isuzu Motors South Africa commitment to work with all our partners to help create a South Africa which embraces diversity as a strength. International Corporate Operations Craig Uren Senior Vice President, Sales, Service & Marketing Michael Sacke Chief Executive Officer Michael Sacke and Managing Director CEO and MD, Isuzu Motors South Africa Tomoyuki Yamaguchi Vice President Isuzu International Liaison Corporate Operations Denise van Huyssteen Y. Kimata Executive Corporate Affairs, Assistant Manager: Isuzu International Liaison Business Strategy and Legal Corporate Operations 01 | Isuzu Motors South Africa Sustainability Report for 2018 | 02
In a display of confidence in the South Cape rugby team, The Isuzu Southern Our aim is to be the most flexible vehicle African market, Isuzu Motors Limited Kings. company focused on providing solutions made a bold and strategic decision to to our customers. Our customers have We work closely with our subsidiaries to invest in the country by purchasing unique requirements, whether it is provide innovative solutions and selected assets from General Motors, transporting materials or bicycles, extended value to our customers. Isuzu's thereby, making Isuzu Motors South operating mobile clinics or libraries, This is Africa the first commercial and light commercial vehicle manufacturing and distribution operation outside of Japan in which Isuzu has a 100% shareholding. Commercial Bodybuilder, Kanu, offers custom-made bodies to any truck, from concept to final product. Other joint ventures include Isuzu carrying loads to construction sites, driving off-road and through extreme terrains… We have innovative applications and solutions to meet their needs. our story Finance, Isuzu Mobility and Isuzu Nothing is impossible. Our commercial The official launch of the company took Drivetrain, each offering a tailored and light commercial vehicles are built place on 16 February 2018 at the solution to ensure our customers' and engineered locally for local company's head office in Nelson Mandela vehicles are kept on the road. conditions. Bay. The President of Isuzu Motors, Masanori Katayama, in his address at the We produce more than 40 models across event said: “Our decision to invest in Imprinted in the hearts of the Isuzu D-MAX range, in both left- and South Africa is indicative of the South Africans since the right-hand drive and close to 20 models commitment we have to this market and each in the medium, heavy and extra While Nelson Mandela Bay has been home to the Isuzu Parts Distribution Centre. Isuzu also purchased the balance of also the confidence we have in our 1960's heavy trucks portfolio. A number of brand for over four decades, Isuzu Motors South Africa's shareholding in Isuzu Trucks South Africa. employees, dealers, suppliers, With a firm footprint on South African different derivatives, including bus journey officially began in January 2018. During the prior year General Motors took the decision to exit government, business partners and our soil, the first Isuzu vehicle to enter the applications, are produced from these This followed the purchase by Isuzu Motors Limited of the from the South African market… A decision which potentially community stakeholders.” South African market was the Isuzu Elfin models. On the passenger front, we offer Struandale light commercial vehicle manufacturing plant, the could have had severe consequences for the Nelson Mandela truck which was imported from Japan in a trendy sports utility vehicle, the mu-X, Isuzu Motors Limited certainly knows the Vehicle Conversion Distribution Centre and the control of the Bay community and also for the country as a whole. 1964. powered by Isuzu's proven three litre commercial vehicle manufacturing and diesel engine. distribution business. With more than a And in 1972 the production of the first 100 years of manufacturing experience, Isuzu derived vehicles began in South In the short to medium term our focus is Isuzu today sells vehicles in over 120 Africa. These light commercial vehicles on successfully launching future products markets and has manufacturing were initially branded as Chevrolet due to and ensuring the sustainability of our operations in 30 countries of most of the global Isuzu and GM alliance which operations. Isuzu Motors South Africa is which are with joint venture partners. was in place at that time. committed to transformation and embraces transformation as a strategic Named after Japan's mightiest river, Isuzu In 1978 the first generation of light business imperative within our own is focused primarily on commercial commercial vehicles carrying the Isuzu business and across our value chain, vehicles, light commercial vehicles and brand name were produced in South including suppliers and dealers. diesel engines. In fact, Isuzu is the world's Africa for the first time. In the decades to largest commercial diesel engine follow, various Isuzu light commercial As we head on our journey it is not so manufacturer, having produced over 85 vehicles, sports utility vehicles and trucks much about talking but rather about million engines to date. were introduced into the market. action. We will build our future success based on our approach to be focused, Locally, Isuzu is aiming to grow and be The ultimate objective of Isuzu Motors consistent, uncomplicated, agile and very part of the economic development and South Africa is to achieve our vision of importantly, we will be different. transformation of South Africa. To this "Being a leader in the manufacture and end an extensive national network of 79 supply of vehicles, exceeding customer Isuzu Motors South Africa. With you for dealers are in place to sell and service expectations, building on our heritage the long run. Isuzu light commercial vehicles, SUV's and recognising the impact on our and trucks locally and 29 dealers in Sub- community and environment". Saharan Africa. The company procures components and services through an Isuzu Motors South Africa is utilising the strengths of its Japanese and South Our Values extensive network of direct and indirect suppliers and aims to uplift and empower the community through its corporate African heritage and expertise to build a successful business based on Teamwork, social responsibility initiatives. establishing strong relationships of trust with key partners. Action, Isuzu also sponsors various sporting and outdoor events, including the provision of Our values of Teamwork, Action, Excellence support and logistics solutions to Africa's Excellence and Motivation are the biggest triathlon – IRONMAN. Isuzu is pulse of our company. & Motivation also the anchor sponsor of the Eastern 05 | Isuzu Motors South Africa Sustainability Report for 2018 | 06
This is Ÿ We are the only Original Equipment Manufacturer (OEM) in South Africa which specialises in both light how we're commercial vehicles and trucks. Ÿ We specialise in diesel engines. DIFFERENT Ÿ Isuzu Motors, with its heritage of more than 100 years, is the world's largest commercial diesel engine manufacturer, having produced over 85 million engines to date. These very engines form the heart of all our Isuzu vehicles. Ÿ Our size/scale within the South African context makes us unique. Ÿ We are the first subsidiary outside of Japan in which Isuzu holds a 100% ownership. Ÿ We are the only OEM which locally engineers our bakkies to meet the requirements of the South African market. Ÿ We are the first operation within Isuzu's global network to build the Arctic AT35 on a production line. Ÿ We were the first brand to build a bakkie derived SUV in the SA market. 09 | Isuzu Motors South Africa Sustainability Report for 2018 | 10
This is how the media describes Isuzu Products In 2018, we celebrated 40 years of Isuzu production in South Africa and after four decades Isuzu vehicles are well known for its reliability, durability and capability. 11 | Isuzu Motors South Africa Sustainability Report for 2018 | 12
ISUZU Range This is how we're There are over 43 models available across the Isuzu bakkie range: Ÿ 30 models for South Africa Ÿ 13 models for export markets of which working towards seven are right-hand drive and six are left- hand drive. Isuzu d-MAX Single Cab 4x4 and 4x2 being a leader Isuzu D-MAX Extended Cab 4x4 and 4x2 Isuzu D-MAX Double Cab 4x4 and 4x2 in the manufacture and supply of vehicles and exceeding 2x4 and 4x4 Isuzu 4x2 Isuzu Black customer expectations Isuzu Motors South Africa's vehicles are manufactured with pride and excellence to provide transport solutions for our Isuzu Motors South Africa achieved #1 customers. This is validated by our recertification of the position in the medium- and heavy-duty Isuzu ARCTIC AT35 internationally recognised ISO 9001 Certificate which affirms commercial truck segment of the South 4x4 the company's ability to consistently provide quality products African market for the past six years in a row. and services that meet customer and regulatory requirements. 4x4 and 4x2 13 | Isuzu Motors South Africa Sustainability Report for 2018 | 14
In the truck market, we provide the Isuzu's SUV, the mu-X following solutions: introduced in 2018 The seven-seater mu-X represented an important milestone for Isuzu Motors South Africa as it was the first new vehicle to be launched under our new ISUZU Trucks Medium Commercial Vehicle company. This also expanded our product portfolio into the sport utility Isuzu N-Series category, which is one of the fastest growing sectors in the automotive industry. Isuzu's KB to D-MAX name change Isuzu Motors South Africa refreshed its bakkie range, giving it a new name along with higher levels of specification, quality and efficiency to make its popular light commercial vehicle (LCV) more appealing ISUZU Trucks Heavy Commercial Vehicle than ever. Isuzu F-Series 19 models in DID YOU KNOW: The D-MAX name originated in Thailand, with the 'D' the F-Series originally referring to the 2000 model range which is year Isuzu bakkie which boasted the flush "Dragon Eyes" headlamp design. It classified as also represents Isuzu's proud legacy in heavy-duty. the production of diesel engines, the use of industry-defining direct injection, as well as ground-breaking design and durability. 'Max' signifies Isuzu's maximum approach to design, size, comfort, technology, performance, safety, durability and line-up. The Isuzu experience ISUZU Trucks Extra Heavy Commercial Vehicle Isuzu FX-Series Isuzu is focused on providing superior lifetime after-sales and customer support, establishing close relationships through the 18 models in contributions from our people and value-offering, to contribute to the success of our customers, dealers, partners and suppliers. the FX-Series We strive to be a leader in the aftermarket component supply, vehicle maintenance and life-cycle value solutions for our customers range which through being responsive, decisive, consistent, easily accessible, innovative and always exceeding customer expectations. is classified We have complete faith in our vehicles and are committed to being with our customers for the long run. We value our partnerships, as extra think long-term and we are confident in the capability of our vehicles. heavy-duty. Isuzu's commitment to customers is demonstrated through our tagline: “With you for the long run.” 15 | Isuzu Motors South Africa Sustainability Report for 2018 | 16
Isuzu, a Isuzu, a life-cycle brand solutions innovator Isuzu is a lifecycle brand, committed to being with our customers for the long run by providing valuable aftersales services. Isuzu subsidiaries like Isuzu Drivetrain, Isuzu Finance, and Isuzu Mobility, form part of our life-cycle brand offering. We are a solutions-based company that Isuzu Drivetrain is a joint venture formed to perform the repairs and re-manufacturing of all Isuzu gearboxes and innovates for a wide range of business differentials, both in terms of warranty and retail work. solutions. Isuzu Finance is a joint venture between Isuzu and Wesbank which provides finance solutions in the retail and corporate Now that South Africa is part of the Isuzu segments of the market. group, we can plan for the future and this includes making sure that we leverage Isuzu Mobility is a joint venture between Isuzu and Avis Fleet Services which focuses on providing service and maintenance the very best of Isuzu's portfolio. plans for both trucks and bakkies and provides fixed cost motoring solutions for individual buyers and small business owners. We have the local engineering expertise in Africa which ensures that our vehicles meet the requirements of our customers. Our vehicles showcase the best of Isuzu combined with our local engineering and manufacturing capabilities. Drivetrain Through our 100% owned subsidiary, Kanu Commercial Bodybuilders, we have a solution for any business. Each Isuzu body is custom made and designed from concept to final, to meet the specific needs of the customer for just about every commercial or business sector in Sub-Saharan Africa. Kanu operates independently and is responsible for its own viability. Automotive Chassis Technologies (ACT) is 100% owned by Isuzu Motors South Africa and focuses on providing engineering solutions and services in the form of chassis modification -lengthening, -shortening, etc. Finance Mobility A product of Complete care All Isuzu Trucks purchases offer a purchase warranty as well as roadside assistance. We are committed to keeping our customers' vehicles working Isuzu Truck models are covered for 24 months with an reliably, economically and with minimum downtime during any unlimited mileage warranty. The Corrosion warranty on all Isuzu unforeseen repair or scheduled maintenance. Truck models are 36 months, irrespective of the kilometres. The Isuzu Complete Care safeguards our customers' vehicles, warranty period begins on the date of sale of the vehicle to the because we know a true partnership is one that is with you for original retail purchaser. the long run. We value our relationships with our customers; Whatever you need, whenever you need it, even beyond their vehicles' warranty period, Isuzu we always do our best to meet your needs will never walk away from assisting our customers' and exceed your expectations. unforeseen repairs or vehicle downtime. Isuzu Complete Care comes standard with every new Isuzu D- Helpful Customer Care Consultants are on standby to MAX and embodies Isuzu's unwavering commitment to answer any questions and assist in breakdowns, wherever aftersales service and customer satisfaction. All Isuzu D-MAX clients find themselves. models are sold as standard with a comprehensive five- year/120 000 km bumper-to-bumper warranty and roadside We fit only genuine Isuzu parts to ensure clients' vehicle and assistance, as well as a five-year unlimited distance anti- safety are never compromised, and our pricing is always fair corrosion warranty. and transparent. In addition, a five-year/90 000 km service plan is included in the purchase price, with service intervals scheduled every 15 000 km or annually, whichever comes first. 17 | Isuzu Motors South Africa Sustainability Report for 2018 | 18
Our trained and certified technicians Isuzu's supply footprint know your vehicle best in Africa It's official, we have some of the best bakkie technicians in the world. We earn the trust of our customers by being transparent, accessible, open in communication and always delivering on our promises. The Isuzu South Africa team came third out of 24 participating countries in the Light Commercial Vehicle Division of the 2018 Isuzu World Technical Competition, known as the I-1 Grand Prix, in Thailand. Isuzu has a comprehensive aftersales support system which includes regular skills development and training to ensure technicians keep up-to-date with the technological trends of new vehicles. We can comfortably say that our Isuzu technicians are amongst the best in the world. They competed against the world's best in a rather tough competition that comprised both a practical and a written exam. The winning technicians certainly embrace our mission to be a highly motivated team who deliver the best customer experience. CAPE VERDE We are delighted that our technicians have been recognised for their focussed, agile and flexible approach to finding innovative solutions to ensure that our customers' vehicles remain in operation. SENEGAL NIGERIA GHANA IVORY COAST N ETHIOPIA O O ER LIBERIA M CA TOGO BENIN DA N GABON KENYA GA DEMOCRATIC REPUBLIC U OF THE CONGO RWANDA SEYCHELLES TANZANIA ANGOLA Sub-Saharan Africa MALAWI 26 Dealers E ZAMBIA QU BI AM AR OZ SC South Africa M GA ZIMBABWE DA NAMIBIA 79 Dealers MA BOTSWANA *18 Satellites MAURITIUS BLNS Dealers: ESWATINI 7 Dealers *5 Satellites SOUTH AFRICA LESOTHO Supporting customers with genuine Isuzu parts At Isuzu Motors South Africa we are extremely stringent in our approach to the quality, safety and performance levels of all our products. We only fit Genuine Isuzu Parts, down to the smallest nuts and bolts. We stock R250 -million worth of genuine Isuzu spare parts representing 30 000-part numbers in the Parts Distribution Centre which are distributed daily to dealers in South Africa and Sub-Sahara Africa. To ensure that a product is good enough to be a Genuine Isuzu Part, it must conform to specific standards. Any deviation from our standards means it will not be genuine and ultimately not fit to perform. We encourage our customers to insist on Genuine Isuzu Parts and Accessories, to insist on value for money, safety and long-lasting performance. Isuzu Motors South Africa's aftersales parts division purchased R150-million from local suppliers during 2018. 19 | Isuzu Motors South Africa Sustainability Report for 2018 | 20
We've got a lot of soul. This is how we're building on our heritage At Isuzu Motors South Africa, we pride ourselves on being bakkie and truck specialists and a frontrunner in diesel technology. Isuzu has a rich heritage of reliability and durability. In both the LCV and truck markets, Isuzu is committed on delivering the most durable and reliable products. Through the years each model has been an evolution, building on our strong heritage. 21 | Isuzu Motors South Africa Sustainability Report for 2018 | 22
OUR PROJECTS Skills development and education This is Isuzu Motors South Africa supports the Govan Mbeki Mathematics Development comprehensive curriculum-aligned digital resource package for Android devices called TouchTutor® (which was developed by the GMMDC). This resource comprises of various innovative how we're centre syllabus aligned teaching and learning support components that are currently also available to users (teachers or learners) According to the Govan Mbeki Development Centre, ongoing via mobile Android devices for presentation with digital screens, poor mathematics and physical sciences learner performances TV's or a data projector. in most public schools in South Africa continue to pose a serious risk to the sustainable economic growth of our country. recognising This is despite urgent calls documented in the executive Sponsorship of the Chair in Mechatronics summary of the National Development Plan (NDP) for more at Nelson Mandela University learners to achieve above 50% in mathematics at matric level and for the bolstering of professional training of mathematics A key strategic objective of the Isuzu Chair in Mechatronics is to teachers (NDP, 2013). Many key challenges continue to provide assistance for manufacturing-related development and contribute to the dire state of affairs in education, which is problem solving at Isuzu, as well as at local automotive our impact on our particularly acute in rural parts of provinces like the Eastern suppliers. Through research and innovation, the Chair in Cape. These challenges range from historic disparities in Mechatronics facilitates co-operation between industry and education based on ethnicity, socio-economic challenges in academia with the aim to enhance human capital development large sections of the educational sector in South Africa and sub- in the automotive sector. standard academic teaching by teachers due to a lack of Mechatronics students are exposed to the real industrial world, community & sufficient skills, content knowledge and quality resources. preparing them for their final-year project. Mechatronics In response to this crisis, the Govan Mbeki Mathematics Engineering students have access to the latest manufacturing Development Centre (GMMDC) at the Nelson Mandela technologies and professional expertise, which can benefit University has, over the past three years, implemented a series them in their studies, and better prepare them for their future of innovative and highly successful mathematics and physical careers. environment sciences development and support initiatives for secondary Every year several projects are identified by Isuzu Motors South school teachers and learners in several districts of the Eastern Africa and assigned to the Mechatronics students of Nelson Cape. An innovative and modern offline Techno-blended Mandela University. In 2018 it was decided to give the third year Teaching and Learning model (TBM) for CAPS mathematics and Mechatronics students a project to design a device for the physical sciences was used with great success during loading of fuel tanks at the Isuzu truck assembly line. Another development project implementations since 2016. third year project was the design of a torqueing station for In 2018 Isuzu Motors South Africa partnered with the GMMDC automatic transmissions for Isuzu bakkies. to sponsor three schools in Nelson Mandela Bay and an One of the best projects was to improve the material supply Corporate Social Responsibility additional three in 2019. The TBM model is based on a chain of the Isuzu truck cabins from the storage to assembly area. The objective was to design a reconfigurable platform to Recognising our impact on the community and the environment forms an integral part of Isuzu Motors South Africa's vision. reduce the number of trolleys. The students successfully We aim to provide sustainable solutions in the community by investing in skills development and education, completed the project and produced a robust and innovative environmental management and providing support to natural disaster relief. design. The design was implemented for all types of truck cabins on the new line at the Struandale plant in 2019. Isuzu Motors South Africa supports schools during water crisis At the height of the severe drought period in the Western Cape in 2018, Isuzu supported water relief organisation Save our Schools in Cape Town with two Isuzu FTR 850 trucks equipped with water tanks, ensuring that schools that were affected by the drought received water and sanitation. PC New Brighton Academy 23 | Isuzu Motors South Africa Sustainability Report for 2018 | 24
Employee volunteerism Isuzu Motors South Africa is taking a lead in environmental management by holding Employee volunteerism is an integral part a land-fill free status at all facilities and implementing the philosophy to reduce, of Isuzu's corporate culture and employees are encouraged to give of their Isuzu Cares, reuse and recycle. skills and time to company-supported community initiatives. With our slogan, Isuzu cares, I care too, employees Item 2018 Target 2018 Actual We achieved a 95% recycling enthusiastically and proudly represent the company at community initiatives. ratio for 2018 which includes Recycling: Reuse 42.08 kg/unit 64.04 kg/unit 64.04kg per unit. Recycled % 94% 95% (which includes reuse) Isuzu ChildLife In partnership with Isuzu dealers, Isuzu established the Isuzu ChildLife. This is a non-profit entity that responds to the needs of We regard waste as a resource that can create secondary and tertiary employment. disadvantaged and vulnerable children in the community in which our dealers operate. To date Isuzu ChildLife has successfully supported 67 underprivileged, child-focused projects across South Africa. Approximately 30 people are based at In 2018 The Isuzu ChildLife Foundation partnered with the Ironman 4 the Kids Foundation in Port Elizabeth to build a creche in our facilities from different recycling Walmer Township. Early Birds Daycare in Sakhasonke Village, Walmer Township, provides a school to 50 children from the area. The organisations while many others are creche owner, Neliswa Cawe, previously operated from her employed at recycling companies across home, providing care to 27 children between the ages of 6 months and 5 years. the city, creating furniture, plastic goods and polystyrene commodities. In addition, Isuzu ChildLife Foundation, in partnership with the Key Foundation, also reached out to the community of Most of Isuzu Motors South Africa's recyclable tenders are Sweetwater in Pietermaritzburg to build a brand-new creche. awarded to local small to medium businesses, including a Umkhuleko Creche now accommodates 87 preschool children, missionary centre which is not charged for the recyclable who were previously cramped into two small dark rooms, with material. no adequate bathroom facilities. Isuzu Motors South Africa is committed to protecting the environment and has implemented the following steps to Isuzu Motors South Africa cares for the achieve this: Waste Yard Ÿ Natural resources like energy and water are utilised environment sparingly and as efficiently as possible; Isuzu Motors South Africa is committed to minimise its impact on the environment. As an environmentally conscious company, Item 2018 Target 2018 Actual it promotes the use of recycled materials for community development programmes. During the 2018 financial year Isuzu Utilities/Energy 1.61 MWh/unit 1.47 MWh/unit introduced sustainable recycling initiatives in the community. In Water 3.55 kl/unit 2.39 kl/unit addition, Isuzu provided logistical support towards the rehabilitation of endangered seabirds. Ÿ Environmentally friendly chemicals have been sourced and Furthermore, our employees are actively involved in volunteering are used in the manufacturing processes; in beach clean-ups, home recycling and waste separation. Ÿ Maintaining the invasive species management project to be actively involved in the protection of biodiversity; Isuzu Motors South Africa's Environmental Management System Ÿ Consolidating waste shipments and operations to reduce is ISO 14001 approved which means that all activities, products our carbon footprint. and services related to the support of the vehicle or vehicle component manufacturing and assembly on both the truck and Isuzu Motors South Africa is committed to implementing bakkie lines, the Vehicle Conversion and Distribution Centre and measures to prevent pollution: Parts Distribution Centre, meet international environmental Ÿ In sourcing materials for production, we always consider the standards. waste hierarchy of energy recovery, recycling, re-using of material and waste avoidance. Waste Yard Do it differently, Environmental Management 25 | Isuzu Motors South Africa Sustainability Report for 2018 | 26
At Isuzu we nurture a culture of Over 350kg of Plastic responsibility and caring for our Waste Avoidance community and environment. We Collected for World believe it is our duty to educate our Re-use of Material employees about the impact of plastic Environment Day on the environment and to encourage more responsible methods of disposing Recycling plastic waste. Our 2018 environmental programmes included the following: Energy Recovery Ÿ On World Environment Day each employee was encouraged to bring a bag full of recyclable plastics in exchange for a reusable Isuzu branded shopping bag. More than 350kg of plastic waste was collected to commemorate the importance of keeping our environment clean. Ÿ Continuous improvement for recycling and re-using Ÿ Ad hoc recycling drives were held where employees were opportunities. encouraged to bring waste from home and dispose of it in Ÿ Maintaining a landfill-free status. our waste separation stations based in the car parks at the Ÿ Reducing the impact on climate change resulting from Isuzu facilities. painting processes. Ÿ On International Coastal Clean-up Day we filled a one-ton Isuzu Motors South Africa is committed to being cognisant of bakkie with waste collected along the Cape Recife coast. the communities where all operations are located and in so Ÿ On International African Penguin Awareness Day Isuzu doing ensures that: Motors South Africa donated a new Isuzu bakkie for use by Ÿ The company participates in external engagement initiatives the Southern African Foundation for the Conservation of for its interested and affected parties; Coastal Birds (SANCCOB) to transport endangered African Ÿ Awareness initiatives are implemented to target all key penguin chicks and adult penguins, as well as other stakeholders (internal and external) to be part of driving seabirds, for various rehabilitation-focused conservation change. work. Employees witnessed and participated in the release of several rehabilitated penguins on this day. We are cognisant of our carbon dioxide (CO2) emissions and fuel economy Employee volunteerism is an integral part of Isuzu's corporate culture and employees are encouraged to give of their skills and time to company-supported community initiatives. With our slogan, Isuzu cares, I care too, employees enthusiastically and proudly represent the company at community initiatives. Isuzu is committed to being cognisant of CO2 emissions and fuel economy and is currently researching the viability of electric and hybrid trucks. Our future plans for improvement include the RZ4E 1.9 turbo-diesel engine which was specifically developed with fuel economy and CO2 performance in mind. There are several alternative propulsion initiatives currently under development for our commercial vehicle segments and these include: Ÿ Electric Trucks and Hybrid trucks Isuzu Motors South Africa is investigating the possibility of implementing electric and hybrid trucks and buses. These vehicles are currently being tested in South Africa. Ÿ Diesel Dual Fuel We have worked with a local company to build a prototype Diesel Dual Fuel F-series truck (FTR850 AMT) which is on a trial basis to test the vehicle in real-world conditions. The Diesel Dual Fuel system is a conversion to the engine where a combination of diesel and compressed natural gas (CNG) is used. The use of CNG allows a more efficient operation. In our local testing, a fuel economy improvement of 31% and 16% was recorded when travelling on the open road and in a city cycle respectively. 27 | Isuzu Motors South Africa Sustainability Report for 2018 | 28
HOLISTIC EMPLOYEE SKILLS INVESTMENT: SUPPORT: Isuzu Motors South Africa invests in its employees by providing training opportunities and exposure to continuous skills In recognising that our employees are a fundamental part of development programmes. Isuzu Motors South Africa, the company endeavours to provide This is how we’re holistic employee support. An onsite full-functioning clinic is provided as well as a dedicated onsite social worker servicing the workforce through the in-house employee assistance programme. 5 365 employees participated in various Isuzu training and skills development programmes during 2018. BUILDING A Our unique approach of providing wellness testing, counselling and the administration of chronic medication onsite, provides a support network to employees to reduce employees from defaulting in their treatment protocols. MOTIVATED Our inclusive wellness strategy incorporates educational awareness whereby tips and facts are shared with all employees to promote opportunities for enhancing every employee's holistic wellness. The annual Corporate Wellness Week is one of these awareness platforms implemented for employees to interact with our social partners, service providers and relevant TEAM stakeholders with the objective of nurturing employee wellbeing intellectually, financially, emotionally, physically and socially. The company supports employees' and their families' participation in physical exercise activities such as the FNB City Walk (Johannesburg) and the Algoa FM Big Walk for Cancer (Port Elizabeth). to deliver the best Isuzu Motors South Africa complies with the requirements of Compensation for Occupational Injuries and Diseases by actively collaborating with the Registered Medical Assistant to ensure injuries on duty are recorded and administered timeously. customer experience One of our key priorities is our people. Isuzu Motors South Africa employs more than 1000 people who actively work towards delivering a superior customer experience. Indirect employment consists of 4000 people in our dealerships and 20 000 people at supplier levels. At Isuzu Motors South Africa we value and respect each other. We subscribe to and embrace the Japanese concept of Artisan programmes Ikigai which encourages the realisation of the hopes, ambitions, dreams and potential of every individual - which we This includes the training of high potential team members who believe contributes to building an extraordinary company. are recruited from the shop-floor and contracted on three- to four-year artisan development programmes such as We nurture a culture of growing greatness where employees can unleash their potential to become the best version of Electricians, Fitters, and Mechanics. Employees on this themselves. programme complete a trade test after which they are accredited as qualified artisans. In 2018 six employees participated in artisan programmes 29 | Isuzu Motors South Africa Sustainability Report for 2018 | 30
New leader transition programmes Bursaries and Tuition refunds 249 employees participated Scholarships and employee This is a training intervention facilitated whenever a new team or leader is appointed, in New Leader Transition education which allows fast tracking the smooth establishment and operation of the team. This was essential during Isuzu's first year in 2018. programmes in 2018. Isuzu Motors South Africa financed bursaries and assistance scholarships to the value of R12-million rand in 2018. Employees of Isuzu Motors South Africa who have been in the employ of the company for Employees who have been in employ for a minimum of three continuous years a minimum of three months, or two years Organisational Drivers' and forklift by 2018, who have moved over from GMSA, Opel and Isuzu Trucks South for MBA qualifications, may enjoy the benefit development programmes licences Africa, are entitled to enjoy the financial benefit of bursaries and scholarships of financial assistance to improve their We run a variety of courses/workshops such as VSM (Value Isuzu endeavours to assist employees achieve their driver's for their children. academic qualifications in a mutually Stream Mapping), Personality Profiling, Conflict Resolution, and forklift licences. beneficial field on a part-time basis. Change Management (Preparing for tomorrow; Trust Map), More than a thousand Scholarships were financed to and Resilience. 97 employees achieved their drivers' the value of R3.9 million In 2018 55 employees were awarded tuition refunds to and forklift licenses during 2018. 89 employees participated in And 226 Bursaries were financed to the value of the value of R279 000. organisational development programmes R8.8 million during 2018. Dealer staff training Multi-skilling programmes Isuzu dealers are treated as an extension of our Isuzu Motors South Africa endeavours to upskill our hourly workforce to empower employees to be able to perform several employees and undergo a variety of courses, both technical jobs in their area, resulting in a flexible, multi-skilled workforce. technical and sales, to ensure they are geared to delivering the best customer experiences. During 2018 240 employees participated in multi-skilling programmes This programme is designed to allow team members to have broader exposure to core knowledge and educational qualifications. 2 143 employees participated in dealer As employees earn more skills, they earn more educational credits and progress along the skills ladder to earn more wages. staff training programmes during 2018. Employees are remunerated based on their competencies and skills acquired. Skill level 1: 0 % A snap shot Skill level 2: 8 % On achieving level four, an employee is awarded RETIREE SUPPORT 900 retirees were of Isuzu's Skill level 3: 7 % an Automotive Manufacturing Industry We have a dedicated social worker who prepares employees for retirement, provides registered and serviced at hourly Certificate (AMIC). Advancement beyond financial guidance, ensures that retirees are active and optimally use their time for meaningful activities, and who also facilitates retiree social activities. the Isuzu Motors South Skill level 4: 85 % Africa Clinic during 2018. workforce: level four is vacancy driven. RETURNING OUR PEOPLE HOME SAFELY At Isuzu Motors South Africa we are dedicated to fostering a preventative safety culture by providing and maintaining safe and healthy working conditions for all our employees to ensure our people return home safely. Our slogan is My Safety, My Commitment. Employees are all responsible for safety and are involved in drives where they are recognised for their safety suggestions and interactions. In creating a preventive safety culture, we have introduced two safety systems during 2018 to support the company's Workplace Safety Programme. During 2018, nine months were the longest stretch for zero lost workday incidents. Quality Training Quality Training 31 | Isuzu Motors South Africa Sustainability Report for 2018 | 32
This is our Journey of Trans- formation Isuzu is committed to the transformation of the organisation and fully embraces transformation as a strategic business imperative. Isuzu Motors South Africa CEO and MD Michael Sacke said: “We all have a responsibility to help uplift and grow our economy. We should always remember that an economy cannot grow by excluding people and that an economy which is not growing, cannot integrate all its citizens in a meaningful way. Transformation will impact the long-term sustainability and growth of our business and that of the dealer network”. Isuzu Motors South Africa is working on various initiatives to representative Employment Equity Forum in place as well as a improve our employment equity, skills development, recruitment and selection policy which emphasises the need to preferential procurement, enterprise and socio-economic give preference to historically disadvantaged individuals. development. We recognise that the creation of an equitable working We are also working with our suppliers and dealers in support environment, in which the dignity of individuals is respected, of our transformation objectives and allocating resources to our and the diversity of all employees is valued, represents an Dealer Development Department to assist dealers in achieving essential foundation for sustainable growth and competitive their unique transformation objectives. We are committed to advantage. incorporating our transformation objectives across our entire value chain. “Transformation is a moral imperative of our country. Adjacent Isuzu Motors South Africa is aiming to be to this, it should be viewed as a pragmatic growth strategy awarded a Level 4 B-BBEE Status by 2021. geared at realising the country's full potential by bringing more South Africans into the economic mainstream,” said Sacke. Isuzu's employment equity strategy is driven by compelling business reasons and is not only the outcome of a legislative requirement or social conscience. We have a fully 33 | Isuzu Motors South Africa Sustainability Report for 2018 | 34
Struanway, Struandale, Tel: +27 (041) 403 9111 Port Elizabeth, 6001, Fax: +27 (041) 403 2937 South Africa 0800 047 898 Isuzu South Africa @isuzusa @isuzusa www.isuzu.co.za
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