Exxaro Resources limited
Environmental, social and governance report 2021

About this report

Our ESG report for the year ended 31 December 2021 reflects how we measure and manage our impact on the environment and society, and our commitment to good corporate governance.


The information included in our reporting is influenced by our materiality determination process. This year, we followed a double materiality process that considers an outward and inward focus. The outward focus considers our impact on society and the environment, and the inward focus considers the impact of a matter on our ability to create and preserve value over time. We further group these material matters into themes that link to the resources we use and affect.

Refer to the integrated report for a detailed discussion on this process and the material matters we identified.

Theme Material matters 
Adapting to the changing context Adapting to the changing context
The operating context is changing rapidly. Social, political and economic issues all impact our ability to create value. We operate in a long-term asset class with significant infrastructure investment. To remain a leader, we must respond to both the current context and anticipate the future. 
  • Geopolitical context
  • Macro-environment
  • Supporting a just transition to a low-carbon economy
Helping our people thrive

Helping our people thrive
Exxaro's employees are the enablers of the organisation's performance. To deliver on our strategic goals, we need to foster a culture that supports adaptability and innovation, while leveraging the strength of diversity, equity and inclusion.

We are deeply committed to protecting our people's health, safety and wellness and building relationships based on trust.

  • Health, safety and wellness
  • Workforce: culture, capability, diversity, inclusion and innovation
  • Labour relations
Building sustainable communities Building sustainable communities
We operate in an environment of stakeholder capitalism# and where our business activities impact our stakeholders who respond to these impacts. Our social licence to operate depends on how we look after our communities and the natural world around us.

We are committed to a social and just transition sensitive to the potential impacts of Exxaro, its communities, South Africa and the planet.

#  Where organisations are oriented to serve the interests of all their stakeholders.

  • Human rights
  • Job and business creation
  • Responsible environmental stewardship
  • Supporting a just transition to a low-carbon economy
Executing our strategy Executing our strategy
Climate change is no longer a refutable occurrence. We are committed to the Paris Agreement and have established a strategy and business objectives to respond to both the short and long term risks and opportunities presented by climate change. 
  • Coal portfolio optimisation
  • Diversify into minerals
  • Build a leading global renewable energy solutions business
Driving business resilience Driving business resilience
Underpinning our strategic goals is the drive to enhance our business resilience through safe production, the delivery of financial results, effective capital allocation, compliance excellence as well as entrenching innovation and capitalising on digitalisation. Over and above these, the way we conduct ourselves as a business strengthens our reputation and resilience. 
  • Financial performance and resilience
  • Legal, regulatory and compliance excellence
  • Capital allocation
  • Operational excellence (innovation and digitalisation)
  • Transparency, ethics and integrity

For material matters relevant to this report, refer to our material matters.

We report on our progress in the 2021 financial year in terms of how we create and preserve value, and prevent the erosion thereof over time. This report contains the most material information about our value creation, transparently and understandably.


The content of this report is guided by:

  • Our materiality determination process
  • Companies Act, 2008 (Act 71 of 2008), as amended (Companies Act)
  • International Financial Reporting Standards (IFRS)
  • JSE Limited (JSE) Listings Requirements and Debt Listings Requirements
  • Department of Trade, Industry and Competition (dtic) broad-based black economic empowerment (B-BBEE) codes of good practice
  • The effective parts of the Broad-based Socio-economic Empowerment Charter for the Mining and Minerals Industry 2018 (Mining Charter III)
  • International Integrated Reporting Council's Integrated Reporting Framework 2021 ( Framework)
  • United Nations Global Compact (UNGC)
  • Global Reporting Initiative (GRI) standards
  • King IV Report on Corporate Governance for South Africa, 2016 (King IV™)1
  • The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition
  • Sustainability Accounting Standards Board (SASB)


This report contains material information about our ESG performance for the period 1 January 2021 to 31 December 2021 (the 2021 financial year). It covers financial and non-financial environmental and social information of our wholly owned and joint operations in South Africa. The reporting boundary now incorporates material information about Cennergi Proprietary Limited (Cennergi) following our acquisition of the 100% interest of this business in 2020. Following the disposal of Tronox in March 2021, information on this investment is no longer included unless stated. We have consolidated material information related to Cennergi's safety incidents into the Exxaro group. The health, environmental, water, energy and climate change key performance indicators (KPIs) will be fully integrated in 2022.

We include limited information on operations where we do not have management control but hold a significant equity interest, namely Sishen Iron Ore Company Proprietary Limited (SIOC), a subsidiary of Kumba Iron Ore Limited, or joint control, namely Mafube Coal Proprietary Limited (joint venture) and Moranbah South coal project.

1 Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.

Inside a coal beneficiation plant at our Grootegeluk BU

Inside a coal beneficiation plant at our Grootegeluk BU

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About this report
About Exxaro
Evolution of a 21st century company
Our ESG perspective
Measuring our performance
Strategic key performance indicators
Stakeholder management

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Air quality
Climate change resilience
Energy management
Water security management
Waste management
Environmental liabilities and rehabilitation
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Ethical culture
Performance and value creation
Adequate and effective control
Trust, good reputation and legitimacy
Board of directors
Our executive team
Remuneration and nomination committee report
Remuneration committee report
Nomination committee report
Risk and business resilience committee report
Social, ethics and responsibility committee report
Audit committee report
Investment committee report
King IV application register
Remuneration report
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Human rights

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GRI index
SASB index
Task Force for Climate-Related Financial Disclosures (TCFD)
Assurance report
Appendix A: Criteria