Exxaro report selector 2019

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Exxaro Resources Limited
Integrated report 2019

Currently viewing: About Exxaro / Material matters

Material matters

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.

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

Our material matters

The identified matters were mapped and grouped under five themes:

Broader themes:
  • Macro-environment
  • Business resilience
  • Our people
  • Social licence to operate
  • Climate change
Detailed performance on material matters.
# Climate change is a systemic issue which prevails across more than one material issue.
* Matter falls under more than one theme.
Material matters
1 Financial resilience
2 Key customer dependency
3 Cost competitiveness of product
4 Product substitution
5 Capital project execution and capital allocation
6 Workforce culture, diversity and capability/innovation
7 Transparency, ethics and integrity
8 Safety and health
9 Legal and regulatory excellence
10 Social unrest
11 Supporting job and business creation
12 Cyber security
13 Climate change#
14 Responsible environmental stewardship
15 Country risk (political)
16 Price and currency volatility
17 Short-term investor/shareholder focus

18

Infrastructure access and capacity


Stakeholders
Analysts
Communities
Contractors
Customers
Employees
Government
Industry peers
Investors
Media
NGOs
Suppliers
Unions

 

Changes to our material matters

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

Macro- environment

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

Financial
Manufactured
Social and relationship
Natural
Human

 

Customers

Suppliers

Government

Communities

Employees

Contractors

Unions

NGOs

Media

Investors

Analysts

Business resilience

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

Financial
Manufactured
Social and relationship
Natural
Human

 

Industry peers

Customers

Suppliers

Government

Analysts

Investors

Communities

Employees

Unions

NGOs

Our people

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

Financial
Manufactured
Social and relationship
Intellectual
Human

 

Suppliers

Government

Communities

Employees

Contractors

Unions

NGOs

Social licence to operate

Social unrest

Supporting job and business creation

100

Community unrest

Loss of social licence to operate

Manufactured
Social and relationship
Intellectual
Natural
Human

 

Suppliers

Government

Communities

Employees

Contractors

Unions

NGOs

Media

Climate change

Climate change

Responsible environmental stewardship

102

Climate change concerns

Loss of social licence to operate

Financial
Manufactured
Social and relationship
Natural

 

Customers

Government

Communities

Employees

Contractors

Unions

NGOs

Suppliers

Media

Investors

Analysts