As we entered the final phase of our previous strategy, successfully concluded in 2020, we reflected on our purpose, prospects and social obligations in our changing operating context. Through this process of reflection and careful consideration, we have clearly identified our future path to achieve our vision for resources powering a clean world.
We have long understood the need to balance the country's socio-economic development, which relies on coal generated power, with the need to support the transition towards a low-carbon economy to reduce carbon emissions and the harmful impacts of climate change, thus contributing to humanity's sustainability. These are major changes that will raise future challenges and increase external risks for those who do not adapt but will present significant opportunities for those who are able to evolve.
Climate change increases competition between communities for scarce resources like water and biodiversity while factors such as rising heat increases the risk of safety and health incidents in our operations.
The growth in disruptive technology in the energy sector has potential to displace our business in the medium to long term.
The transition towards a low-carbon economy has significant socio-economic implications for our business and the communities we operate in.
Our coal assets do not belong to us. We are stewards of responsibly maximising their value. We have a responsibility to use these coal assets to build a sustainable business for our investors, employees and communities,and a sustainable future for the planet.
TRANSITIONING TO A RESILIENT, DIVERSIFIED RESOURCES COMPANY
Early value coal to maximise our high-quality assets
Diversify into minerals supporting a low-carbon future
Build a leading global renewable energy solutions business by 2030
Our Sustainable Growth and Impact strategy aims to transform Exxaro in a systematic and integrated manner into a diversified company that will transition from a coal base to a minerals and renewable energy business that will thrive in a low-carbon future.
To responsibly enter a carbon-constrained future given our base as a carbon-intensive coal asset, our approach involves:
For further detail on our strategy, strategic development process and performance against our objectives, please see our strategy section.