We have undertaken a reasonable assurance engagement in respect of the selected sustainability information, as described below, and presented in the 2019 ESG report of Exxaro Resources Limited (the "company", "Exxaro" or "you") for the year ended 31 December 2019 (the "report"). This engagement was conducted by a multidisciplinary team including health, safety, social, environmental and assurance specialists with relevant experience in sustainability reporting.
We have been engaged to provide a reasonable assurance opinion in our report on the following selected sustainability information. The selected sustainability information described below has been prepared in accordance with the company's reporting criteria that accompanies the sustainability information on the relevant pages of the report (the accompanying company reporting criteria).
|Selected sustainability information||Unit of measurement||Boundary||Page|
|Number of fatalities||Number||Exxaro group||13, 48|
|Number of lost time injuries (employees and contractors)||Number||Exxaro group||13, 48|
|Lost time injury frequency rate (LTIFR) (employees and contractors)||Rate||Exxaro group||13, 48|
|Occupational health incident frequency rate (OHIFR)||Rate||Exxaro group||13|
|Number of accepted occupational health cases||Number||Exxaro group||13|
|Scope 1 carbon emissions||kt CO2e||Exxaro group||14, 28|
|Scope 2 carbon emissions||kt CO2e||Exxaro group||14, 28|
|Scope 3 carbon emissions||kt CO2e||Exxaro group||28|
|Carbon intensity||kt CO2e/TTM||14|
|Number of level 2 and 3 environmental incidents||Number||Exxaro group||14, 24|
|Water intensity: total tonnage mined||Water withdrawn/
|Exxaro group||14, 32|
|Skills provision (% of appointment from within)||%||Exxaro group||13, 51|
|Scarcity skills retention (% turnover)||%||Exxaro group||13, 51|
|Number of stoppage directives (includes section 54 in terms of Mine Health and Safety Act)||Number||Exxaro group||14, 48|
|Number of stoppage directives (includes directives in terms of National Water Act, National Environmental Management Act and Mineral and Petroleum Resources Development Act)||Number||Exxaro group||24, 48|
We refer to this information as the "selected sustainability information".
The directors are responsible for the selection, preparation and presentation of the selected sustainability information in accordance with the accompanying reporting criteria as set out on (the "reporting criteria").
This responsibility includes:
The directors are also responsible for determining the appropriateness of the measurement and reporting criteria in view of the intended users of the selected sustainability information and for ensuring that those criteria are publicly available to the report users.
Non-financial performance information is subject to more inherent limitations than financial information, given the characteristics of the subject matter and the methods used for determining, calculating, sampling and estimating such information. The absence of a significant body of established practices on which to draw allows for the selection of different but acceptable measurement techniques, which can result in materially different measurements and can impact comparability. Qualitative interpretations of relevance, materiality and the accuracy of data are subject to individual assumptions and judgements. The precision of different measurement techniques may also vary. Furthermore, the nature and methods used to determine such information, as well as the measurement criteria and the precision thereof, may change over time.
In particular, where the information relies on carbon and other emissions conversion factors derived by independent third parties, or internal laboratory results, our assurance work will not include examination of the derivation of those factors and other third party or laboratory information.
We have complied with the independence and other ethical requirements of sections 290 and 291 of the Independent Regulatory Board for Auditors' Code of Professional Conduct for Registered Auditors (Revised January 2018) and parts 1 and 3 of the Independent Regulatory Board for Auditors' Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the IRBA Codes), which are founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Codes are consistent with the corresponding sections of the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards) respectively.
The firm applies the International Standard on Quality Control 1, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibility is to express a reasonable assurance opinion on the selected sustainability information based on the procedures we have performed and the evidence we have obtained. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000 (Revised)), and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements (ISAE 3410), issued by the International Auditing and Assurance Standards Board. These standards require that we plan and perform our engagement to obtain reasonable assurance about whether the selected sustainability information is free from material misstatement.
A reasonable assurance engagement in accordance with ISAE 3000 (Revised), and ISAE 3410, involves performing procedures to obtain evidence about the measurement of the selected sustainability information and related disclosures in the report. The nature, timing and extent of procedures selected depend on the auditor's professional judgement, including the assessment of the risks of material misstatement of the selected sustainability information, whether due to fraud or error.
In making those risk assessments, we have considered internal control relevant to the company's preparation of the selected sustainability information. A reasonable assurance engagement also includes:
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion and subject to the inherent limitations outlined elsewhere in this report, the selected sustainability information as set out in the subject matter paragraph above for the year ended 31 December 2019 are prepared, in all material respects, in accordance with the reporting criteria.
Our report includes the provision of reasonable assurance on the following indicators:
We were previously not required to provide assurance on these selected sustainability information.
We previously provided limited assurance on the following selected sustainability information:
The maintenance and integrity of Exxaro's website is the responsibility of Exxaro's directors. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the report or our independent assurance report that may have occurred since the initial date of presentation on Exxaro's website.
Our work has been undertaken to enable us to express a reasonable assurance opinion on the selected sustainability information to the directors of the company in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than the company, for our work, for this report, or for the conclusion we have reached.
Director: Jayne Mammatt
20 April 2020