Exxaro Resources limited
Environmental, social and governance report 2021

Stakeholder management

In support of Exxaro's purpose to power better lives in Africa and beyond, we aim to improve the quality of our relationships with stakeholders and build long-term, stable and trusting relationships that facilitate business activities and create shared value for all our stakeholders. Our management objective is to mature from ad hoc and procedural engagement levels to the intentional, proactive and predictive management of stakeholder-related risks and opportunities.

Value chain participation


Exxaro's stakeholder universe consists of four broad categories: government, communities, business and value chain participants. Key stakeholders within these categories are those who have a material influence or a high potential of forming part of a network of influence on the execution of the stakeholder excellence agenda.

Exxaro's approach to stakeholder management

Exxaro's key account management (KAM) approach to stakeholder management is based on the global best practice AccountAbility 1000 Stakeholder Engagement Standard. It is a responsive and proactive method for building stakeholder relationships and managing key business risks, enabling us to better achieve our strategic objectives. A key tenet of the KAM approach is internal engagement among key relationship managers to share or exchange perspectives, facts and experiences of their stakeholder engagements to provide insights on possible opportunities and risks to the business strategy that may arise from individual or a combination of stakeholder relationships.


Key relationships fall into eight stakeholder groups: government, regulators, employees, labour unions, communities, investors, customers and suppliers. The tables below provide an overview of how we manage relationships with each group. Due to COVID-19, the majority of engagements were conducted virtually and, where in-person, adhered to strict safety protocols.

Ratings on the quality of stakeholder relationships are a reflection of external surveys and/or internal self-assessments. The stable environment is reflected in relationship scores of 2/3 for all stakeholders. Relationships are perceived to be good but we believe there is always room for improvement.

Stakeholder relationship rating scale

0    No existing relationship or the relationship has challenges

1    Established relationship but can be improved

2    Good relationship with opportunity for improvement

3    Very strong relationship based on mutual trust and respect

GOVERNMENT Quality of the relationship: 2/3

Material themes Group risks assessed or managed through engagement
Material themes
  • Regulatory compliance
  • Country risk
Key stakeholders engaged in 2021 Why we engage
  • Department of Health (DoH) (Limpopo and Mpumalanga)
  • Department of Cooperative Governance and Traditional Affairs (COGTA) including adviser to minister, Limpopo MEC
  • Limpopo premier, Stanley Mathabatha
  • Mpumalanga premier, Refilwe Mtsweni
  • The dtic
  • ANC and Action SA
  • South African Local Government Association

We aim to manage compliance with regulatory requirements, collaborate in finding solutions for socio-economic challenges, and ensure Exxaro is recognised as an investor and good corporate citizen in South Africa through community upliftment initiatives and participation in shaping policies at all levels of government.

How we engage Engagement trends and challenges

Our proactive, face-to-face engagement (as far as possible), includes:

  • One-on-one engagements
  • Dialogue platforms
  • Provision of quarterly reports

In 2021, we measured the quality of our relationship through a pilot relationship quality assessment.

  • The cabinet reshuffle earlier in the year, and November's local government elections entailed building new relationships and realigning priorities. We are watching how the resulting coalition government in many municipalities will manifest
  • The unrest in KwaZulu-Natal and elsewhere in July had a negative effect on the economy and disrupted many businesses
Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

We must engage about arising issues, partner in mutually beneficial projects and support socio-economic development projects

We partner with local government in municipal Integrated Development Plans through our SLP projects. In the past year, we explored opportunities in government's District Development Model in partnership with the NBI's Technical Assistance, Mentorship, Development programme in a municipal capacity building initiative. Our strategy is closely aligned with the country's priorities and clearly indicates how Exxaro is partnering with government.


While the overall results of our pilot study (see case study below), indicated a healthy quality of relationships with key stakeholders at the Department of Mineral Resources and Energy (DMRE) and in our host provinces' government departments, it identified areas in need of improvement for either a specific stakeholder or a relationship factor such as accessibility, engagement history, atmosphere and value creation.

For all stakeholders, there is an opportunity to improve the manner of engagement to improve value creation for all. In particular, we need to improve engagement and collaboration with the Department of Social Development in both provinces. While not bad, our relationship with the Victor Khane municipality in Mpumalanga also needs attention. As a result of the findings, we will also be working to collaborate more closely with the DMRE in Limpopo and the province's economic development department.

Relationship quality assessment

In 2021, our stakeholder affairs department commissioned a pilot assessment of the quality of Exxaro's relationship with three key stakeholders in government: the national DMRE (chief inspector of mines and regional directorates as well as minerals regulation, mine environment management and SLP departments), the provincial governments of Limpopo and Mpumalanga (departments of social development and economic development) and two local municipalities (Victor Khanye and Govan Mbeki).

The assessment measured perceptions of Exxaro's engagement efforts and identified focus areas to strengthen relationships. Perceptions of the relevant stakeholder and their counterparty or "relationship owner" within Exxaro were measured across six pillars: context, history, issues, materiality, atmosphere and value creation.

The relationship quality performance scale considers scores between 0 and 40 as indicative of dysfunctional stakeholder relationships while 40 to 50 is poor, 50 to 60 is weak, 60 to 70 is good, 70 to 80 is strong and 80 to 100 is excellent. Exxaro's overall score across stakeholders was 70, which is on the border of "good" and "strong". Generally, the survey shows that Exxaro enjoys good to high levels of relational capital, which enables effective engagement and mutual value creation.

The heat map format of the results was particularly useful for data analysis to quickly identify improvement areas for management.

Stakeholders were also able to provide personal comments or suggestions to improve relationships with Exxaro. In addition to a commendation in the 2021 survey for Exxaro reducing occupational injuries, stakeholders highlighted expectations for more skills development training, engaging not only when there are issues, job creation, adhering to and delivering on SLPs, improving communication, greater assistance of communities and accountability for mining, localisation, legislative compliance, assistance with service delivery, donating mining houses, relaxing procurement policies, infrastructure and service delivery support, and land.

mountain bike academy

Exxaro mountain bike academy Cape Epic 2022 team

REGULATORS Quality of relationship: 2/3

Material themes Group risks assessed or managed through engagement
Material theme
  • Regulatory compliance
  • Community unrest
  • Country risk (political)
Key stakeholders engaged in 2021 Why we engage
  • DMRE
  • Department of Water and Sanitation (DWS)
  • Department of Forestry, Fisheries and Environment (DFFE)
  • Department of Employment and Labour (DEL)
  • South African Revenue Service (SARS)

We aim to comply with regulatory requirements, align with new initiatives and demonstrate corporate citizenship.

How we engage Engagement trends and challenges

We proactively engage with regulators to keep all stakeholders informed of compliance requirements and social impact through:

  • One-on-one engagements
  • Virtual engagements
  • Dialogue platforms

In 2021, we measured the quality of our relationship through a pilot relationship quality assessment with key government stakeholders, including our DMRE counterparts.

The majority of the challenges in engaging with regulators are associated with the COVID-19 pandemic as well as working-from-home policies. This often resulted in challenges with face-to-face engagement as well as the processing and signing off of authorisations. In addition, malfunctioning of the electronic systems for storing and retrieving of documents, as well as sudden multiple government website disruptions, created additional challenges. This resulted in having to resubmit lost files, which impacted timelines.

Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

We comply with regulations and assist with the management of socio-economic challenges.

Our internal auditing processes and strategies aim to improve our performance while our management controls mitigate risks.

Our pilot relationship quality assessment indicated that we have a strong relationship with stakeholders in the DMRE at national level. Relationships at provincial level were effective but were influenced by factors such as the history of the relationship, stability, internal (organisational) stresses and external (environmental) volatilities. Additional efforts will be made to address these elements in the coming years. We will continue to involve the regulator in our annual Sustainability Summits.
Our community development team member

Our community development team member engaging with communities at our Leeuwpan mine

EMPLOYEES Quality of relationship: 2/3

Material themes Group risks assessed or managed through engagement
Material theme
  • Social licence to operate
  • Labour unrest
Demographics Why we engage
Gender versus age distribution
Gender 20-29 30-39 40-49 50-59 60-69 Total
Female 393 825 360 158 24 1 760
Male 732 1 808 1 278 951 216 4 985
Total 1 125 2 633 1 638 1 109 240 6 745

We ensure that our employees' focus, profile and development efforts are aligned with our strategy and culture, empowering them with information to manage rapid change and uncertainty.

How we engage Engagement trends and challenges

We proactively engage and share information through:

  • Quarterly and monthly meetings with employees at BUs. In the wake of COVID-19, and aligned to Exxaro's digitalisation strategy, leadership communication and engagements are presented primarily through short videos
  • Digital engagement through information screens, emails, bulk SMS and BU-specific communication campaigns as well as our LetsConnect mobile platform
  • Conducting employee engagement and culture surveys

We measured the quality of our relationship through a baseline employee engagement and culture survey conducted in 2020.

COVID-19 continued to present challenges to in-person engagement with employees during 2021.

Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

Our employee engagement and culture survey in 2020 indicated that we must focus on improving diversity across the organisation, fairness in promotion processes and effective reward systems.

In 2021, action plans for each BU addressed the outcomes of our employee engagement and culture survey. In addition to aligning employees with Exxaro's strategy and culture, we are focusing on enabling our social impact initiatives to fulfil employees' personal needs. Our 2021 internal communication strategy therefore addressed our evolving strategy, ESG priorities, the CEO transition, the new group incentive scheme, our community and ESD initiatives, mental health and wellbeing during the pandemic as well as diversity, equality, inclusion and social justice.

We need to improve how we measure employees' understanding of operational issues, policy changes and other communication. We are also aiming to improve our payment administration processes to address isolated errors that directly impact employee morale. This is part of a broader programme to improve the employee experience of Exxaro's human resources processes. We will be reviewing the implementation of our new "line of sight" short-term incentive (STI) scheme at operational level later this year to understand if it is meeting our objectives to improve motivation and performance.
Our head office, the conneXXion

Our head office, the conneXXion, employees celebrating an award received before the COVID-19 pandemic

LABOUR UNIONS Quality of relationship: 2/3

Material themes Group risks assessed/managed through engagement
Material theme
  • Labour unrest associated with wage negotiations
  • Community unrest
  • COVID-19 context
Demographics Why we engage
Exxaro Coal unions Membership
NUM 2 840
Solidarity 363
AMCU 333
Exxaro Coal Mpumalanga unions  
NUM 1 527
Ferroland Grondtrust  
Coastal Coal  

We strive for proactive issue resolution, relationship building, risk management, and maintenance of workplace harmony and professional working relationships with labour unions.

We continue to focus on keeping engagement structures with organised labour functional to ensure continuation of a healthy relationship. These engagement structures play a significant role at BU and employer level in dealing with any employee issues. The critical role of these engagement structures came to light in 2021 as we embarked on wage negotiation processes across Exxaro.

How we engage Engagement trends and challenges
  • Exxaro has a pluralist approach to union recognition but we only formally engage with unions where we have concluded recognition agreements and these unions maintain their collective bargaining rights. Exxaro's threshold for union representation therefore creates a platform for wider representation of union groups across a broad range of employers in the group. This significantly improves communication between Exxaro and unions, and creates an opportunity for human resources to further strengthen strategic partnerships and co-create solutions with unions to address critical strategic issues. The relationships with our union stakeholders remain stable even within the context of wage negotiations across the group
  • We engage through formal structures at BU and employer levels. These are mandatory engagements as per recognition agreements for the purpose of negotiating conditions of employment
  • At branch, regional and national level for union leadership across different unions
  • We consult on policy and procedure changes and keep unions informed about the Exxaro strategy. Over the past two years, we have also consulted extensively on Exxaro's COVID-19 response strategy

We measure the quality of our relationship through self-assessment and resolution of collective and individual disputes.

  • Some newly elected shop stewards need further education on substantive and non-substantive issues. We also need the union officials in the regions to assist us in capacitation of newly elected shop stewards
  • Continued impact of COVID-19 on our business in engaging on key issues such as vaccine mandates
Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

We respect unions' objectives to ensure fair labour practices, remuneration, benefits and better working conditions for their members. We also value their input in business operations and therefore engage with unions twice a year about our performance and strategic outlook.

We meet their expectations in line with our business and people strategies.

The three-year wage agreement finalised in 2021 provides us with time for capability building, relationship building and other projects in collaboration with the unions. We are currently reviewing and improving our human resource management processes, which we anticipate should contribute to further improvements in the relationship with organised labour.

COMMUNITIES Quality of relationship: 2/3

Material themes Group risks assessed/managed through engagement
Material theme
  • Community unrest
  • COVID-19 concerns
  • Country risk (political)
Demographics/our communities Why we engage

Following the disposal of Exxaro Coal Central (ECC*), effective August 2021, Exxaro operates in four local municipalities in Limpopo and Mpumalanga, with closed mines in another three municipalities, including two in KwaZulu-Natal.

Our desired engagement outcomes include avoiding unrest, which stops production, in favour of proactive resolutions. We also strive to maintain our social licence to operate by providing local employment, procurement opportunities and community development initiatives. Ultimately, we are striving for shared value from local mining activity to build trust and advocacy, and improve Exxaro's visibility in the community.

How we engage Engagement trends and challenges

Our approach to engagement and consultation on issues, projects and activities impacting communities is proactive and intentional. We have internal and external engagement platforms addressing community issues. Internally, the future forum monitors the implementation of SLPs. External forums with municipalities, civil society and traditional authorities address socio-economic conditions at local level. We also have platforms at district and provincial level for greater impact.

We measure the quality of our relationship through:

  • Reputation survey conducted every two to three years (last conducted in 2018)
  • Perception assessment conducted by social facilitators at Belfast and Matla
  • Social media sentiment

The emergence of "splinter groups" within recognised community representative structures is a threat to constructive engagement and effective implementation of social initiatives. The impacts include:

  • Inconsistent community representation
  • Unproductive engagement and participation in community forums
  • Violent community engagement events
  • Community demands led by individual agendas
  • Community representatives unwilling to adhere to sound governance processes and rules of engagement

Prevailing misalignment and tension between local government structures, community members and community representation, exacerbated by service delivery challenges, introduces complexity in the local stakeholder landscape and challenges Exxaro's ability to implement SLP initiatives

Prevailing health conditions, low literacy and low skills levels within the community are barriers to community members accessing employment and procurement opportunities

Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy
  • Ad hoc engagement with community stakeholders typically revolves around demands for exclusive access to employment and procurement opportunities as well as skills development that enables access to employment or procurement opportunities at Exxaro

We endeavour to deliver sustainable, scalable and impactful projects with transparent and inclusive engagement. Our ESD programme supports small, medium and micro-enterprises (SMMEs) in creating employment, and we build capacity through skills and enterprise development programmes.

For more information about how we are responding to community needs, please refer to the social section .

  • One of the objectives of our municipal capacity building programme is improved service delivery. Please refer to the outline of the programme
  • The free Wi-Fi provided to communities around our Belfast mine enabled our stakeholders to save on the cost of data, directed traffic to the Exxaro community portal for improved access to available jobs, COVID-19 awareness and overall information availability. In 2022, we're planning to roll out the community Wi-Fi programme to our other mining communities
  • In 2021, through the Impact Catalyst we concluded a feasibility study on Community Oriented Primary Care, conducted through the University of Pretoria, Faculty of Health Sciences. This programme aims to deliver home-based healthcare, through trained health workers, which will strengthen the existing health services
  • We have seen the benefits of social facilitators at some mines in the relationships with community stakeholders, and aim to appoint the same at more BUs. Social facilitators contribute to our understanding of socio-economic challenges in communities, act as intermediaries between the mine and communities, and offer insights into local dynamics
  • We delivered our approved SLP projects, spending R56 million, with improved efficiency compared to 2020

* Divestment concluded in September 2021.

Region BU Local
Population Unemployment
Mines in
Waterberg district
Population: 745 758
Unemployment rate: 37%
Dependency ratio: 65.4%
Grootegeluk Lephalale 140 240 22.2% 47.5%
Nkangala district
Population: 1 445 624
Unemployment rate: 37%
Dependency ratio: 45%
Matla Emalahleni 455 228 27.3% 37.9%
Belfast Emakhazeni 48 149 25.9% 47.0%
ECC* Dorstfontein Emalahleni 455 228 27.3% 37.9%
Govan Mbeki 340 091 26.2% 41.0%
ECC* Forzando North Steve Tshwete 278 749 19.7% 38.0%
Govan Mbeki 340 091 26.2% 41.0%
ECC* Forzando South Msukaligwa 164 608 26.8% 46.0%
Leeuwpan Victor Khanye 84 151 28.2% 45.0%
Mines in
Vhembe district
Tshikondeni Musina 13 200 22.0% 49.0%
Thulamela 497 237 58.0% 70.1%
KwaZulu-Natal Durnacol Dannhauser 102 161 47.6% 78.5%
Hlobane Abaqulusi 243 795 45.1% 72.9%

* Divestment concluded in September 2021.

Health screening at our Grootegeluk mine

Health screening at our Grootegeluk mine during a breast cancer awareness campaign

INVESTORS Quality of relationship: 2/3

Material themes Group risks assessed/managed through engagement
Material theme
  • Short-term outlook of investors
  • Climate change activism with increasing pressure from ESG investors to exit thermal coal. In line with the Paris Agreement, many institutional investors are committing to reducing exposure to coal in their portfolios, which will result in significant constraints in access to capital for companies' operating coal assets going forward
Demographics Why we engage
  • New entrant in the top 20 shareholder list is Arrowstreet Capital
  • From a geographic perspective, the overall shareholding continues to be dominated by South Africa, remaining largely flat for the year at 77% with offshore at 23%

Our investors are the owners of our business and have expectations regarding the value creation of their investment in Exxaro. Through clear and transparent communication of our strategy, distribution policies and achievement of key milestones, we can align with their expectations and grow trust in our organisation to protect returns, prudently allocate capital within the business and ensure transparency regarding our future capital allocation plans - all of which strengthens our access to capital.

How we engage Engagement trends and challenges

Exxaro is committed to ongoing transparent engagement with investors. Given the focus on climate change, we particularly emphasise targeting and engaging with ESG investors to communicate about our Sustainable Growth and Impact strategy, which aims to responsibly optimise our coal business, reposition our business to capture transition opportunities, and prioritise the just transition for workers and communities.

We engage with investors and shareholders by facilitating investor roadshows, including one-on-one and group meetings, hosting capital market days and financial results presentations as well as participation at investor conferences locally and abroad.

We measure the quality of our relationship through the annual investor perception survey.

  • Due to the constantly evolving ESG and regulatory environment, investors are increasingly scrutinising listed companies' strategies for responsibly building sustainable businesses for all stakeholders involved and the planet at large. This has led to a greater demand for improved transparency and reporting around climate change goals from listed companies
  • Global investors tightening their criteria around investing in fossil fuel producers to mitigate the impact of climate change will continue to constrain access to capital for coal-intensive companies
Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

Exxaro's growth prospects remain top of mind with the need for clarity on the just transition and implementation of the Sustainable Growth and Impact strategy. In addition, poor performance of Transnet's rail service raises concerns about the negative impact on the coal business while domestic market demand for power station coal remains depressed as Eskom is fully stocked. Additional concerns include the impact of COVID-19, climate change activism amid calls for withdrawal from the thermal coal business, capital allocation and execution risk of the new minerals strategy, and cost escalation.

We want to "power a clean world" with a just transition to a carbon-neutral future. Our Sustainable Growth and Impact strategy aims to diversify our earnings by 2030 as an interim step to becoming carbon neutral by 2050 - by building a resilient, future-facing portfolio; increasing customer diversification and generating multiple revenue streams; and maintaining our own ESG performance to be a catalyst for sustainable economic and environmental development. This strategy is anchored on measurable and multi-stakeholder value creation with a strategic objective of promoting business resilience in the short term and portfolio robustness in the medium to long term. We are well positioned to continue delivering value through portfolio optimisation, ensuring sustainability of our business, operational excellence and capital allocation priorities.


In addition to its current investor relations programme, Exxaro management is actively looking to engage closely with ESG-focused investors around the issue of climate change and decarbonisation to better understand their investment criteria and to allow Exxaro to articulate its plans and milestones in implementing its Sustainable Growth and Impact strategy to diversify earnings away from coal by 2030 and to becoming carbon neutral by 2050.

In 2022, Exxaro's board will embark on its annual shareholder governance roadshow with domestic and off-shore shareholders to facilitate alignment around and support for Exxaro's organisational priorities, develop stronger stakeholder relationships and to continue to build on the company's positive reputation. The governance roadshow aims to address the outcomes on Exxaro's remuneration policy and gain support for the revised policy, specifically around objective setting process and targets; ESG linkages; and implementation progress. The governance roadshow will also provide the board with a first-hand understanding of how shareholders view the notion of stewardship and their voting intentions, which will enable Exxaro to develop a stronger shareholder value proposition. It will also allow for shareholders to raise any risks and concerns they may have on other governance or ESG issues.

To mitigate against the declining access to capital from institutional investors who are increasingly transitioning capital allocation away from fossil-fuel producers, Exxaro is actively targeting engagement with private wealth funds and retail investors who hold alternative pools of capital.

CUSTOMERS Quality of relationship: 2/3

Material themes Group risks assessed/managed through engagement
Material theme
  • Key customer dependency
  • Eskom systemic risk
Demographics Why we engage
Customer category Market percentage
Electricity generation (Eskom) 71%
Steel manufacturers 2.9%
Boilers and cement users 8.1%
International markets (various) 18%
Customer location Market percentage
South Africa 82.0%
Africa 2.2%
Europe 0.5%
Asia 9.5%
India 5.7%
We aim to understand our customers and strategic partners and foster mutually beneficial relationships through continuous engagement and information sharing. Engagements focus on the environment, trends and market sentiment, exploring future relationships, and improving operational and financial performance.
How we engage Engagement trends and challenges

We engage regularly via telephone, email and virtual meetings, whenever possible, and at different levels in respective customer organisations. The pandemic has encouraged more frequent interactions with our customers, ensuring that we remain relevant and connected. This has also ensured responsiveness to stakeholder concerns and resulted in Exxaro marketing and logistics addressing issues in a timely manner. This has built relationships and allowed sustainable business to continue in unprecedented times.

We measure the quality of our relationship through:

  • An internal assessment informed by various key data measured
  • Effective and ongoing engagement with customers
  • Effectively dealing with and resolving complaints
  • Inability to have face-to-face discussions especially when discussing poor rail performance and the impact on deliveries. However, we continued to engage on a regular basis
  • Managing supply-demand logistical challenges that emerged from producers had high stockpiles in 2021 and an abundance of product in the domestic market. The domestic marketing team had to sell coal domestically and establish new customer relationships via mostly virtual customer engagement methods
Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

Quality product, consistent and reliable supply of product and responsive service.

Exxaro has clearly articulated its strategy to the market. Our stakeholders want to be kept informed and we communicate regularly to meet their expectations.

As we emerge from the restrictions imposed by the COVID-19 pandemic, we hope to have more in-person engagements with our customers to maintain current relations and establish new relationships.
Mine locomotive at our Grootegeluk BU

Mine locomotive at our Grootegeluk BU

SUPPLIERS Quality of relationship: 2/3

Material themes Group risks assessed/managed through engagement
Material theme
  • COVID-19 concerns
  • Eskom systemic risk
  • Community unrest
  • Safety and health concerns
  • Cost competitiveness of products
  • Climate change concerns
  • Country risk (political)
  • Inability to achieve financial targets
  • Low commodity price
Demographics Why we engage
  • In Limpopo, Mpumalanga, KwaZulu-Natal and the Eastern Cape, we have 2 741 vendors
  • Procurement spend is segmented based on financial, price, supply and fraud risk
  • Supplier spend is segmented across operational expenditure, capital expenditure, logistics and social investment expenditure
  • Over 60% of Exxaro's procurement spend was directed towards black-owned and black women-owned suppliers
  • In 2021, some 11% of Exxaro's procurement spend was directed towards SMMEs from host communities

As part of our risk management approach, we manage relationships with suppliers, crucial participants in our value chain, to achieve mutually beneficial operational, strategic and impact goals. Our supplier relationship management programme supports Exxaro's strategies by leveraging value chain partner capabilities. Supply chain management achieves this through joint initiatives aimed at cost savings, sustainability, supply security and business risk exposure mitigation. Exxaro is thus at an advantage to extract discretionary value and emerge as a "customer of choice" among strategic suppliers.

How we engage Engagement trends and challenges
  • Direct, proactive engagement with strategic suppliers as part of our supplier relationship management programme supports Exxaro's strategies by leveraging value chain partner capabilities through collaboration intended to deliver cost savings, achieve the sustainability mandate, ensure security of supply and mitigate business risk exposure so that Exxaro is at an advantage to extract discretionary value and emerge as a "customer of choice"
  • Engagement methods include ad hoc contract reviews to assess performance and negotiate price, our quarterly contractor forum platform to share information on developments in Exxaro as well as safety, health and environmental issues and a biannual Supplier Day to recognise top performers

We measure our performance through a reputation survey, various external surveys and a self-assessment. The last reputation assessment was conducted in 2018.

We will provide an update in the 2023 reporting cycle.

Stakeholder needs and expectations How we respond through the Sustainable Growth and Impact strategy

Our stakeholders include emerging and established suppliers. The main expectation from suppliers includes:

  • Business opportunities within Exxaro
  • To be paid in full and on time
  • To collaborate with Exxaro in creating shared value

Exxaro's sourcing strategies set out to concurrently optimise for performance and supply risk, financial and fraud risk and supply chain sustainability. Supply chain management activities and engagements with suppliers are aimed at preventing or mitigating such risks. For example, agile strategic and group sourcing, contract negotiation and innovation discussions are aimed at managing performance and supply risk. We are constantly reviewing and updating our policies and procedures to respond to the proliferation of procurement scams and fraud attempts. Ongoing improvements to our procurement processes are aimed at risk management and increasing transactional speeds for our suppliers.

In delivering on our purpose of powering better lives in Africa and beyond, our supply chain activities are aimed at increasing the participation of black-owned suppliers and those from host communities, reducing the environmental impact of Exxaro's business and enhancing our reputation while upholding sound corporate governance. Exxaro is fully compliant with the preferential procurement requirements of the B-BBEE codes and mining charters.

We aim to improve engagements through supplier training sessions, hosting Supplier Days and implementing joint innovation initiatives.

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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
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Air quality
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Board of directors
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GRI index
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Appendix A: Criteria