Exxaro Resources Limited
Environmental, social and governance report 2022

Our ESG perspective

Our business activities impact our people, the environment and broader society. Therefore, we have a responsibility to reduce our negative impacts, increase our positive impacts, and ultimately create mutually sustainable value for stakeholders and ourselves.

The ESG imperative

The ESG imperative considers external factors such as social and environmental change, including decarbonisation and reducing poverty. We are driven to play our role in ensuring a fair and equitable society and adjusting our practices to ensure environmental sustainability.

We are committed to protecting our ecosystems and driving environmental and social sustainability given our impact, which includes:

  • Operating in mining, which is a socially and environmentally impactful industry
  • Operating in South Africa; a water-scarce country with socio-economic challenges
  • Being a critical supplier to South Africa's coal-based energy provider, Eskom

Our approach to ESG

We integrate sustainability into our business processes and strategies, and consider our ESG impact in delivering on our purpose, realising our vision and performing against our strategy.

A synthesis of our Sustainable Growth and Impact strategy

  • Be carbon neutral by 2050
  • Maximise value from coal through early value and market to resource strategy
  • Reduce climate-related risks
  • Deliver positive impact through our Social Impact strategy

Strategic objectives

  1. Transition at speed and scale
  2. Make our minerals and energy businesses thrive
  3. Empower people to create impact
  4. Be carbon neutral by 2050
  5. Become a catalyst for economic growth and environmental stewardship
  • Diversify into resilient future-facing minerals and renewable energy, ensuring a significant earnings before interest, taxation, depreciation and amortisation (EBITDA) contribution in these areas by 2030
  • Grow renewable energy business to 1.6GW (net) by 2030
  • Ensure disciplined capital allocation to maximise value, supported by a robust investment process
  • Deliver social, economic and environmental benefits
  • Contribute to sustainable livelihoods
  • Strengthen contribution to a just energy transition
  • Go beyond compliance to achieve sustainable impact

Responding to the energy and just transitions is a critical factor of our strategy. Transitioning into a low-carbon business.

Our sustainability framework

Exxaro voluntarily endorses the United Nations (UN) 17 Sustainable Development Goals (SDGs). We also participate in the National Business Initiative (NBI) in South Africa to align the 17 SDGs with the country's National Development Plan and implement leading practices to uphold the most material SDGs so that our business leaves a lasting positive impact. The SDGs that Exxaro impacts are highlighted in colour.

Our Sustainable Growth and Impact strategy considers ESG matters across the asset, portfolio and enterprise levels. We have embedded ESG into our capital allocation model and remain committed to our ambition to become carbon neutral by 2050.

Our sustainability framework

Our approach is driven by:

Supporting global decarbonisation and energy transition objectives

We published our climate change position statement (sustainability tab) in 2020, which details our aspirational target to be carbon neutral by 2050. To deliver this, we developed our Climate Change Response strategy (2020 investor tab) aligned with TCFD recommendations and our efforts to build portfolio resilience in line with our Sustainable Growth and Impact strategy.

Supporting global best practice and recommendations

We support TCFD recommendations and align our reporting and business processes accordingly

TCFD index (refer to the databook)

We participated in the UN Climate Change Conference of the Parties (COP27)

Climate change resilience

We are a signatory to the UNGC Active level and support the 10 principles


Human rights

CDP climate change and CDP water programme participation

Climate change resilience and water security management

Our executive remuneration includes material ESG targets for water and energy efficiency. Remuneration report

Our group short-term incentive (STI) scheme incentivises delivery against key financial, operational and ESG goals aligned to approved annual business plans.


We are guided by umbrella and respective ESG policies, procedures, strategies and frameworks that support our approach to ESG management and performance.

Environment, social and governance

ESG responsibility and accountability

The board is ultimately responsible and accountable for the delivery of ESG commitments. The board is supported by:

  • The risk and business resilience (RBR) committee for environmental and climate change impact and management
  • The social, ethics and responsibility committee (SERC) for the oversight of:
    • Health and safety
    • Engagement and development of our people
    • Community support and development
    • Stakeholder engagement

Implementation is overseen by the relevant executive heads and operationalised by business unit (BU) managers.

 Governance that supports our sustainability drive

Delivering measurable results and impact

We consciously embed ESG in everything we do, and track and measure how we perform by:

Benchmarking our ESG progress against our industry sub-sector peers who exemplify global best practice

Measuring our performance

Reporting on progress against strategic KPIs and targets. We also aim to continuously improve our ESG reporting. Selected key sustainability metrics in this report were independently assured by KPMG

Strategic KPIs and assurance criteria

Considering and responding to our stakeholders' needs and expectations

Stakeholder management

Exxaro is committed to improving disclosure, and we recognise that transparency and accuracy are critical to this. During the year, we received the following accolades in recognition of our continuous efforts:

We received a Transition Pathway Initiative (TPI) ranking of 4/4. This high score reflects our commitment to managing our greenhouse gas (GHG) emissions and shows stakeholders and investors that we are in an excellent position to benefit from opportunities presented by the low-carbon transition.

We received a level B score in the management band. This is the same as the Africa regional average of B, and higher than the coal mining sector average of C. Our score shows that we are taking coordinated action on climate issues.

Exxaro won an award for being a fatality-free business (with 10 000 or more employees) at the COALSAFE 2022 conference held by the South African Colliery Managers' Association.

Exxaro ranked fifth at the annual awards – an achievement that represents admirable progress over the past two years – from 13th in 2020 and 37th in 2019.

Exxaro ranked in the top 10 in the sub-sector basic resources in the FTSE Russell ESG rating.

Exxaro claimed second place Best Sustainability Reporting Award in the metals and mining category in the 2022 ESG Reporting Awards.

We featured in the latest top 100 Vigeo Eiris ranking of the best emerging market performers.

We are committed to promoting workplace equality. We are proud to announce that, in recognition of these efforts, we were included in the Bloomberg 2022 Gender Equity Index.

We sustained our A rating and improved in the environmental category in the ESG ratings by Morgan Stanley Capital International (MSCI).

Our ESG performance is unpacked in the sections that follow.

We recognise our collective responsibility to participate in global movements towards transitioning to a low-carbon world and decarbonising the energy system to reduce emissions and support prosperous and safe communities through broader environmental stewardship.


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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