Integrated Report 2021
Exxaro Resources limited
Environmental, social and governance report 2021
The board adopted an emergency response plan in 2019, focusing on capability interfaces for crisis management and business continuity, to ensure
integrated disaster or incident response and recovery.
The board's RBR committee oversaw the process of updating the following business continuity governance documents:
Furthermore, this process sought to align BUs with the board-approved business continuity plan template, which is aligned to ISO 22301 and British Standards Institution 11200:2014.
Flowing from a review of the roles and responsibilities of the board committees in 2021, the board approved the change of the role and responsibility of its sustainability, risk and compliance committee to focus on risk management, business resilience and compliance. The committee was renamed the RBR committee. Business resilience is the ability of an organisation to absorb and adapt in a changing environment to enable it to deliver its objectives, survive and prosper. The committee therefore, importantly, also oversees the appropriateness of the company's crisis response plans and frameworks.
The board considers and approves the short, medium and long-term strategy for the group, as formulated and developed by management.
During assessment and formulation of the revised strategy, the board engaged with executive and senior management during its annual strategy session.
The board acknowledges and appreciates that the company's core purpose, risks and opportunities, strategy, business model, performance and sustainable development are inseparable elements of the value creation process. The insight that conditions are changing and there is a need to become future-fit continues to drive decisions and measure transition going forward.
The board also ensures that it approves policies, budgets and operational plans that give effect to the strategic direction, and delegates to management the responsibility for implementing and executing the approved strategy within the approved governance framework.
Our Sustainable Growth and Impact strategy is illustrated in our 2021 integrated report.
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The board ensures the integrity of the company's integrated report and its alignment with best practice in integrated reporting, including other reporting by the company, from time to time.
The board also oversees the publication of our annual financial statements, ESG report, and the reports of our audit committee, SERC, RBR committee, investment committee, and remuneration and nomination committee as well as the remuneration report and other online or printed information that complies with legal requirements and meets the legitimate and reasonable information needs of stakeholders.
The board is committed to clear and comprehensive financial reporting and disclosure as well as constructive shareholder engagement, including transparency of activities and performance. The board therefore ensures that reports issued by the company enable stakeholders to make informed assessments of the group's performance as well as its short, medium and long-term prospects.
KPIs are identified that track the execution of the Exxaro strategy. KPIs have been determined for the board and group executive committee, and the process of reviewing and aligning the board committees' KPIs will be finalised in 2022.
Exxaro uses a strategic performance dashboard that supports reporting on the achievement of KPIs that track execution of our strategy. The dashboard was reviewed in 2021 and its reporting philosophy revised. To measure execution of Exxaro's refined Sustainable Growth and Impact strategy, reporting will focus on exceptions (out of appetite or worst tolerable) going forward to track performance towards the achievement of the strategy and desired portfolio.
The board KPIs have been approved by the board to be tracked and reported on in 2022 through the dashboard with the objective of achieving the company strategy:
Through a cascade principle, the group executive committee drives and reports on the selected board KPIs. Similarly, KPIs will be submitted based on the cascade principle for refinement by the energy executive committee.
The status of the strategic performance dashboard is reported at each board and board committee meeting throughout the year. Please consider our integrated report for more detail on the strategic performance dashboard.
Monitoring operational performance at our BU
Report Index