Environment

We manage our impact by incorporating environmental performance principles in our ESG management systems, environmental policies and practices. We comply with local legislation, management standards, and current and future-based best practice. Our approach goes beyond compliance as demonstrated by our participation in voluntary benchmarks such as the global CDP climate and water disclosure projects.

Our environmentally and socially responsible response to climate change reflects our commitment to sustainability and objective to become carbon neutral by 2050, and supports South Africa's just transition programmes.

Stewardship timeline

We aim to be a leading mining company through our response to climate change and environmental stewardship.

Our approach

Our environmental management programmes comply with applicable legislation, ensuring that all activities requiring licences are fully licensed, and our Sustainable Growth and Impact strategy guides the evolution of our environmental policy as we transition to a climate change-resilient portfolio.

Management standards for air quality, water, energy, mine closure and rehabilitation as well as environmental incident management and reporting support our BUs in this transition, and embed climate change mitigation and adaptation. These standards are integrated into our environmental management activities, which are also ISO 14001-certified. Our STI scheme, aligned with our decarbonisation plan and Sustainable Growth and Impact strategy, motivates employees to uphold these standards.

We evaluate our environmental impacts in terms of NEMA's precautionary principle.

Exceeding minimum regulatory requirements

To ensure that we respect human rights and maintain our environmental licence to operate, we strive to exceed minimum regulatory requirements and ensure consistent compliance. Our wheel of excellence defines this approach. This ensures our approach to environmental stewardship is consistent across the group. It effectively integrates new assets to align our BUs in implementation, compliance, monitoring and reporting processes. It also guides BUs in acquiring necessary competencies.

Regulatory challenges

Belfast's water use licence (WUL) was submitted to the DWS for review and was granted in the fourth quarter of 2022. The renewal application for Matla's WUL was declined by DWS. However, an appeal was lodged with the Water Tribunal ensuring that the WUL is valid until a decision has been made. In the interim, Exxaro is engaging with DWS to find an acceptable resolution.

Accountability and responsibility

The RBR committee oversees our environmental management and impact on behalf of the board. The executive head: sustainability is responsible for implementing environmental strategies for the group, assisted by sustainability and BU managers.

How we performed

We intensified our focus on environmental areas that impact our journey to environmental stewardship and goal to be carbon neutral by 2050. We also intensified efforts to decarbonise our operations through implementing energy efficiency projects, implementing energy and water performance metrics across all functional areas and ensuring we close the loop on resource use. Through our university chairs, we promoted research and activities that advance sustainable utilisation of resources, the mitigation and adaptation of climate change effects, and other pertinent environmental issues.

To further improve our performance and sustainability, we are looking into strategic partnerships, applying green technologies and sound environmental management tools.

Environmental incident reporting

Our standardised environmental incident reporting system ensures our BUs manage incidents effectively and efficiently to minimise negative impact. We immediately report incidents and mitigation measures to relevant authorities.

Following the update of our environmental incident management standard in 2021 to include level 0 incidents (incidents with no impact to the receiving environment but those that pose a potential risk), we continue to monitor these incidents. In 2022, we recorded nine level 1 incidents (2021: 31).

We have not recorded level 2 (intermediate impact and/or non-compliance) and 3 (major impact and/or non-compliance) incidents over the past three financial years.

Refer to the databook for details of our level 1 environmental incidents.