Exxaro Resources Limited – Environmental, social and governance report 2021

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OVERVIEW

OVERVIEW

OVERVIEW

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

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
ENVIRONMENT

ENVIRONMENT

ENVIRONMENT

Environment Air quality Climate change resilience Energy management Water security management Waste management Biodiversity Environmental liabilities and rehabilitation

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
SOCIAL

SOCIAL

SOCIAL

Social People Communities Human rights

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
GOVERNANCE

GOVERNANCE

GOVERNANCE

Governance 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

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

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

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
ADDITIONAL INFORMATION

ADDITIONAL INFORMATION

SOCIAL

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

TRANSITIONING TO SUSTAINABLE GROWTH AND IMPACT

In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.

We're building on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.
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Trust, good reputation and legitimacy

STAKEHOLDER INCLUSIVITY

The Exxaro board has adopted a stakeholder-inclusive approach that, supported by its KAM approach to stakeholder engagement, responds to principle 16 of King IV regarding stakeholder inclusivity and responsiveness. It aims to balance the needs, interests and expectations of material stakeholders in the organisations best interest over time to protect and build trust in the organisation and its reputation and legitimacy in the eyes of our stakeholders.

The board approved a stakeholder management policy in 2020. As recommended by King IV, Exxaros disclosure regarding stakeholder relationship management reflects our management approach, key focus areas and stakeholder management activities. See Stakeholder management of our ESG report and Creating value through stakeholder engagement of our integrated report.

Internal communication

Employees

As the Exxaro Sustainable Growth and Impact strategy evolves, it is supported by embedding organisational culture by, among others, communicating through our LetsConnect application. Throughout the pandemic, the application has been a valuable tool, which has been used for daily COVID-19 screening of employees, return-to-office procedures and general communication about the vaccination programmes.

External communication

Stakeholder days

The purpose of the stakeholder day virtual events was twofold:

To communicate Exxaro's performance to stakeholders
For the SERC and the board to engage with a diverse set of stakeholders by listening to community feedback and receiving an account from beneficiaries on Exxaro's social performance and impact

The stakeholder engagements were scheduled over three days:

Day 1: ESD stakeholders
Day 2: Socio-economic development stakeholders in Limpopo
Day 3: Socio-economic development stakeholders in Mpumalanga

Participants included:

National, district and local government
Community leaders (including tribal authorities, community structures, NGOs and strategic business partners)
Union representatives
ESD programme implementation partners
SLP, ESD and mega-projects beneficiaries

Other external communications

The following external communication (among others) took place in 2021:

Publication of the annual reporting suite (integrated report, ESG report and climate change statement) available on the company's website
AGM (presentation of annual financial statements, report of the SERC and various other resolutions for voting by shareholders)
SENS announcements available on our website
Interim and annual financial results presentations by executive management
Results roadshows following the annual and interim results presentations for interaction with investors
SLP future forums that play an important role in engaging with labour representative groups to promote ongoing discussions about the future of mines, to identify possible challenges and solutions for productivity and employment, and to improve business sustainability
Capital Markets Day outlining Exxaro's strategy in response to climate change, risks and opportunities, including details on the company's Sustainable Growth and Impact strategy

ECC beneficiation plant

REPUTATION

Exxaro ranked fifth in the annual Sunday Times Top 100 Companies Awards in 2021. This achievement represents admirable progress over the past 24 months (from 37th place in 2019 to 13th in 2020). The awards celebrate contributions by the private sector to securing investments, creating jobs and keeping our economy robust. The awards also acknowledge listed companies that have earned the highest returns for shareholders over the past five years.

In addition, Exxaro received Top Employers Institute recognition for its industry-leading people development practices. This reflects our dedication to a better working world through excellent human resources policies and people practices. This is the second time Exxaro has received this honour since 2014.

Our continued support of the 10 principles of the UNGC and progress report of 4 August 2021 also highlight our commitment to human rights, labour, the environment and anti-corruption.

For more information on awards achieved by the company, please view our ESG perspective.

VALUE DISTRIBUTED TO OUR STAKEHOLDERS IN 2021

Exxaro's reputation has been built on our performance in the coal sector