Integrated report 2019
Exxaro Resources Limited
Integrated report 2019
Our integrated report for the period under review has been informed by matters of material significance to Exxaro and our stakeholders. We determined these material matters through a rigorous materiality determination process.
Critical assessment of stakeholder reports
Analysis of external sources such as media reports and articles
Review of material matters included in integrated and annual reports issued by peers
Review of internal documentation including risk register
Internal interviews and interviews with board members
Prioritising of identified matters by executives and those charged with governance
Material issues for reporting purposes
The identified matters were mapped and grouped under five themes:
Broader themes:
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Material matters are significant in terms of Exxaro's existence and sustainability, and change in relation to our evolving context and business priorities.
It is evident that the nature of our operating context is changing rapidly with sentiment hardening towards companies within the fossil-fuels sector, particularly over the past 12 months. While climate change and related environmental matters have always been of material significance to Exxaro, in the past year, the necessity to elevate this matter to a broader, more prominent theme became apparent.
The challenges faced by Eskom are also cause for material concern as it is a major customer. We have therefore regrouped this matter as we believe that this key customer dependency is a matter to be viewed through the lens of business resilience. We have also grouped capital allocation and capital project execution under the same theme as we believe these matters determine our business resilience.
The material matters in each theme, as well as the related risks, SDGs and impacts or influences of each material matter are outlined in the table below.
| Impact/influences | |||||||||||||||||||||||||
| Theme | Matters of significance | Page in this report |
Related risks | Sustainable development goals | Links to strategy |
Links to business model |
Capitals | Stakeholders | |||||||||||||||||
 |
Product substitution Climate change Country risk Price and currency volatility Short-term investor/shareholder focus Infrastructure access and capacity |
86 |
Eskom systemic risk Exchange rate volatility Commodity price volatility Competition and product substitution Community unrest Cost competitiveness of products |
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✓ | ✓ |
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Customers Suppliers Government Communities Employees Contractors Unions NGOs Media Investors Analysts |
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Financial resilience Key customer dependency Cost competitiveness of product Capital project execution Legal and regulatory excellence Climate change |
92 |
Climate change concerns Loss of social licence to operate Cybersecurity threats Safety and health concerns Cost competitiveness of products Exchange rate volatility Commodity price volatility Competition and product substitution Eskom systemic risk |
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✓ | ✓ |
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Industry peers Customers Suppliers Government Analysts Investors Communities Employees Unions NGOs |
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Safety and health Workforce culture, diversity and capability/innovation Transparency, ethics and integrity Legal and regulatory compliance Supporting job and business creation |
96 |
Safety and health concerns Loss of social licence to operate |
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✓ | ✓ |
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Suppliers Government Communities Employees Contractors Unions NGOs |
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Social unrest Supporting job and business creation |
100 |
Community unrest Loss of social licence to operate |
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✓ | ✓ |
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Suppliers Government Communities Employees Contractors Unions NGOs Media |
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Climate change Responsible environmental stewardship |
102 |
Climate change concerns Loss of social licence to operate |
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✓ | ✓ |
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Customers Government Communities Employees Contractors Unions NGOs Suppliers Media Investors Analysts |
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