Exxaro Resources Limited
Environmental, social and governance report 2022

About this report

The ESG report reflects how we manage and measure our impact on the environment and society, and our commitment to good corporate governance.

We report on our progress in creating and preserving value, and preventing its erosion over time in a transparent and understandable manner.


This report contains material information about our ESG performance for the period 1 January 2022 to 31 December 2022 (the 2022 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 incorporates material information about Cennergi Proprietary Limited (Cennergi). We consolidated material information about Cennergi's safety incidents into the Exxaro group's results. Unless otherwise stated, we no longer include information on Exxaro Coal Central Proprietary Limited (ECC) operations since its disposal in September 2021.

We include limited information on operations where we do not have management control but hold an important equity interest, namely Black Mountain, Richards Bay Coal Terminal Proprietary Limited (RBCT) and Sishen Iron Ore Company Proprietary Limited (SIOC), a subsidiary of Kumba Iron Ore Limited (Kumba Iron Ore), or joint control, being Mafube Coal Proprietary Limited (joint venture (JV)) and Moranbah South coal project (joint operation).

Frameworks and guidelines

The content of this report is guided by:

  • Our materiality determination process
  • The Companies Act of South Africa, 2008 (Act 71 of 2008), as amended (Companies Act)
  • The Integrated Reporting Framework
  • International Financial Reporting Standards (IFRS)
  • The 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)
  • The United Nations Global Compact (UNGC)
  • Global Reporting Initiative (GRI) standards
  • The King IV Report on Corporate GovernanceTM for South Africa, 2016 (King IV)1
  • The South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (SAMREC Code)
  • The Sustainability Accounting Standards Board (SASB)
  • The Task Force on Climate-Related Financial Disclosures (TCFD) recommendations


The executive committee, various departmental heads and board sub-committees review the report before submission to the board for review and approval. Certain sections are also reviewed by external assurance providers and external experts. Select strategic sustainability KPIs, marked as reasonable assurance (RA) in this report, were assured by independent assurance provider, KMPG Inc.

Refer to the assurance report for details.

Link icon Refer to the assurance report for details.

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



Amakhala Emoyeni windfarm between Bedford and Cookhouse in the Eastern Cape.


We distinguish the information included in the report through a double materiality determination process. Since 2021, we have applied this process, which considers an outward (impact materiality) and inward (financial materiality) focus. Our impact materiality considers our impact on society, communities and the environment, and our financial materiality considers matters that can impact our ability to generate revenue and preserve shareholder value over time.

We group these material matters into themes that link to the resources we use and affect. The 2022 review resulted in 35 matters under seven themes, and differentiated matters more relevant for either the integrated or ESG reports.

Recognising that materiality is dynamic in nature, the process is conducted annually, allowing us to regularly and timeously reflect on matters that may evolve from being material from an impact perspective, to being financially material.

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


Material matters


Further details

Adapting to changing context

Adapting to a 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 competitive, we must respond to the current context and anticipate the future.

  • Country risk
  • Geopolitical context
    • Macro-environment
    • Supporting a just transition to a low-carbon economy
  • Commodity price risk

Link icon Our ESG perspective

Responsible environmental stewardship

We acknowledge the impact of mining in our ecosystem. We must ensure we are responsible stewards of natural resources upon which our operations and communities rely to ensure a sustainable future for our employees, communities and the planet.

  • Water stewardship
  • Emissions generation
  • Managing our pollution
  • Closure planning and rehabilitation management
  • Carbon emissions reduction
  • Waste management
  • Biodiversity management
Transitioning into a low-carbon business

Building sustainable communities

We operate in an environment of stakeholder capitalism #. Our business activities impact our stakeholders and they, in turn, respond to these impacts.

Our social licence to operate depends on how we look after our communities and the natural world around us, and adherence to legislation.

In addition to the many programmes we have in place to support our communities' health and wellbeing, we are also committed to a socially just transition, sensitive to the potential impacts for Exxaro, our communities, South Africa and the planet.

# Where organisations are oriented to serve the interests of all their stakeholders.
  • Social licence to operate - including community relations, collaboration, and engagement
  • Social acceptance and community unrest
  • Supporting a just transition to a low-carbon economy
  • Impacts on local communities (positive and negative)
  • Value sharing
  • Job and business creation
  • Resettlement and land use
  • Human rights

Link icon Stakeholder management

Link icon Communities

Link icon Human rights

Helping our people thrive

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

We are committed to protecting our people's health, safety and wellness and building trusting relationships.

  • Health, safety and wellness
  • Workforce: culture, capability, diversity, inclusion and innovation
  • Labour relations

Link icon Stakeholder management

Link icon People

Executing our strategy

Climate change is not 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
Our ESG perspective
Transitioning into a low-carbon business

Driving business resilience

Underpinning our strategic objectives is the drive to enhance our business resilience through safe production, delivering financial results, effective capital allocation, compliance excellence, entrenching innovation and capitalising on digitalisation.

  • Supply chain and logistical impediments
  • Financial performance and resilience
  • Capital allocation
  • Cyber risk
  • Innovation and digitalisation
Link icon Integrated report

Principled governance

We conduct ourselves so as to strengthen our business reputation as a good corporate citizen and resilience in a changing environment.

  • Transparency, ethics and integrity
  • Embedding ESG in response to increased regulation and for sustainability
  • Legal, regulatory and compliance

Link icon Governance

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Driving transition through leadership
About this report
Our strategic evolution
About Exxaro
Our ESG perspective
Transitioning into a low-carbon business
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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Material themes in focus
Ethical culture
Performance and value creation
Adequate and effective control
Trust, good reputation and legitimacy
Board of directors
Our executive team
Audit committee report
Investment committee report
Remuneration committee report
Nomination committee report
Risk and business resilience committee report
Social, ethics and responsibility committee report
King IV application register
Remuneration report

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Human rights

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Assurance report
Appendix A: Criteria