Exxaro Resources Limited
Environmental, social and governance report 2022

Assurance report

Independent Auditor’s Reasonable Assurance Report on Exxaro Resources Limited Selected Key Performance Indicators

To the directors of Exxaro Resources Limited

Report on Selected Strategic Key Performance Indicators

We have undertaken a reasonable assurance engagement on selected key performance indicators (KPIs), as described below, and presented in the 2022 Environmental, Social and Governance Report of Exxaro Resources Limited (Exxaro) for the year ended 31 December 2022 (the Report). This engagement was conducted by a multidisciplinary team including health, safety, social, environmental and assurance specialists with relevant experience in sustainability reporting.

Subject Matter

We have been engaged to provide a reasonable assurance conclusion in our report on the following selected KPIs, marked with an “RA” on the relevant pages in the Report. The selected KPIs described below have been prepared in accordance with Exxaro’s internally developed criteria set out in Appendix A: Criteria of the Report

Category Selected strategic KPIs Unit Scope of coverage
Safety Fatalities Number Exxaro group
Safety Lost-time injuries (employees, contractors and visitors) Number Exxaro group
Safety Lost-time injury frequency rate (LTIFR) (employees, contractors and visitors) Rate Exxaro group
Occupational health
  • Occupational health incident frequency rate (OHIFR)
  • Reported cases of TB
  • Reported cases of COAD
  • Reported cases of pneumoconiosis
  • Reported cases of noise-induced hearing loss (NIHL)
  • Reported cases of silicosis
Rate Exxaro group
Occupational health Number of accepted occupational health cases: (pneumoconiosis, TB, NIHL) Number Exxaro group
Social Talent bench — % of clusters (DL to DU) that have at least two EE candidates in the 3A/3B/2A category Percentage Exxaro group
Social Talent bench — % of clusters (EL and above) that have at least two EE candidates in the 3A/3B/2A category Percentage Exxaro group
Social Skills provision (% of appointment of employees from within) Percentage Exxaro group
Social Scarcity skills retention (% turnover) Percentage Exxaro group
Greenhouse gases Carbon intensity (scope 1) tCO2e/total kilotonnes mined (kTTM) Exxaro group
Greenhouse gases Carbon intensity (scope 2)  tCO2e/total kilotonnes mined (kTTM) Exxaro group
Greenhouse gases Carbon footprint (scope 3) tCO2e Exxaro group
Water Water intensity — total tonnage mined  Water withdrawn/RoM tonnes Exxaro group
Environmental compliance Reportable cases of level 2 and 3 environmental incidents Number Exxaro group
Stoppage directives Stoppage directives (includes section 54 in terms of MHSA) Number Exxaro group
Stoppage directives Number of stoppage directives (includes directives in terms of NWA, NEMA and MPRDA) Number Exxaro group

Directors' Responsibilities

The directors are responsible for the selection, preparation and presentation of the selected KPIs in accordance with the accompanying reporting criteria. This responsibility includes the identification of stakeholders and stakeholder requirements, material issues, commitments with respect to sustainability performance and design, implementation and maintenance of internal controls relevant to the preparation of the Report that is free from material misstatement, whether due to fraud or error. The directors are also responsible for determining the appropriateness of the measurement and reporting criteria in view of the intended users of the selected KPIs and for ensuring that those criteria are publicly available to the Report users.

Inherent Limitations

Carbon emissions quantification is subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions factors and the values needed to combine emissions of different gases and sources.

Our Independence and Quality Control

We have complied with the independence and other ethical requirements of the Code of Professional Conduct for Registered Auditors issued by the Independent Regulatory Board for Auditors (IRBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards).

KPMG Inc applies the International Standard on Quality Control 1, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Auditor's Responsibility

Our responsibility is to express a reasonable assurance opinion on the selected KPIs based on the procedures we have performed and the evidence we have obtained. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information and, in respect of greenhouse gas emissions, in accordance with International Standard on Assurance Engagements ISAE 3410, Assurance Engagements on Greenhouse Gas Statements issued by the International Auditing and Assurance Standards Board. These standards require us to plan and perform our engagement to obtain reasonable assurance about whether the selected KPIs are free from material misstatement.

A reasonable assurance engagement in accordance with ISAE 3000 (Revised) and ISAE 3410 involves performing procedures to obtain evidence about the measurement of the selected KPIs and related disclosures in the Report. The nature, timing and extent of procedures selected depend on the auditor’s professional judgement, including the assessment of the risks of material misstatement of the selected KPIs, whether due to fraud or error.

In making those risk assessments we have considered internal control relevant to Exxaro’s preparation of the selected KPIs. A reasonable assurance engagement also includes:

  • Evaluating the appropriateness of quantification methods, reporting policies and internal guidelines used and the reasonableness of estimates made by Exxaro
  • Assessing the suitability in the circumstances of Exxaro’s use of the applicable reporting criteria as a basis for preparing the selected information
  • Evaluating the overall presentation of the selected sustainability performance information

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Reasonable Assurance Opinion

In our opinion and subject to the inherent limitations outlined elsewhere in this report, the selected KPIs as set out in the Subject Matter paragraph above for the year ended 31 December 2022 are prepared, in all material respects, in accordance with the accompanying Exxaro reporting criteria.

Other Matters

Assurance procedures were not performed by KPMG on the previous Environmental, Social and Governance Report. The information relating to the prior reporting periods has been subject to assurance procedures by a different assurance provider.

The maintenance and integrity of Exxaro’s website is the responsibility of Exxaro’s management. Our procedures did not involve consideration of these matters and, accordingly, we accept no responsibility for any changes to either the information in the Report or our independent reasonable assurance report that may have occurred since the initial date of its presentation on Exxaro’s website.

Restriction of Liability

Our work has been undertaken to enable us to express a reasonable assurance opinion on the selected KPIs to the directors of Exxaro in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than Exxaro, for our work, for this report, or for the conclusion we have reached.

Safeera Loonat
Chartered Accountant (SA)
Registered Auditor

18 April 2023

KPMG Crescent
85 Empire Road, Parktown

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Appendix A: Criteria