The Exxaro board applies good corporate governance to ensure sustainable growth while transitioning to a low-carbon world, an ethical culture and delivering on the promise of human rights.
Exxaro's board is the focal point and custodian of good corporate governance for the group. The board sets Exxaro's short, medium and long-term strategic direction through our Sustainable Growth and Impact strategy (integrated report). By approving a new capital allocation model and budget, setting and monitoring performance and culture expectations as well as a governance framework for the group, the board enables sustainable value creation.
Our board assumes ultimate accountability and responsibility for the company's performance and affairs. In so doing, it effectively represents and promotes the group's legitimate interests. As a responsible corporate citizen, it also considers its material stakeholders' legitimate interests and expectations to contribute positively to society at large.
At the core of Exxaro's corporate governance are principles that guide the board in meeting its responsibilities to the company, the group and its stakeholders. These principles enable the company to achieve the King IV governance outcomes and fulfil its purpose to power better lives in Africa and beyond.
The board therefore regards good corporate governance as fundamentally important to create value and achieve the King IV governance outcomes in its own ethical and effective leadership.
King IV promotes good governance, transparency in leadership and decision making, and focus on sustainability. Sustainable development, which is understood as meeting current needs without compromising the ability of future generations to meet their needs, is a primary ethical and economic imperative. It is also a fitting response to organisations being an integral part of society, status as a corporate citizen and meeting stakeholders' needs, interests and expectations. Exxaro expresses its commitment to sustainable development through its Sustainable Growth and Impact strategy.
In line with King IV's recommendation to apply and explain how Exxaro practices good governance, we include our detailed King IV application register in this report. This sets out each principle with an explanation of steps taken as well as Exxaro's policies and processes.
In addition, our corporate governance reporting is structured under the four desired King IV outcomes: