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).
The content of this report is guided by:
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.
Refer to the assurance report for details.
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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.
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.
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.
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.
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.
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.
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.
We conduct ourselves so as to strengthen our business reputation as a good corporate citizen and resilience in a changing environment.