Exxaro Resources Limited
Environmental, social and governance report 2022

Performance and value creation

Strategic direction

King IV articulates the responsibilities of the board, which is to steer an organisation strategically in line with its core purpose and values by approving as well as monitoring an informed short, medium and long-term strategy while considering sustainability-related impacts, risk and opportunities.

The board sets Exxaro's short, medium and long-term strategic direction through our Sustainable Growth and Impact strategy. It enables sustainable value creation through approval of a new capital allocation model and budget, setting and monitoring performance and culture expectations as well as a governance framework for the group.

Our strategy: positioning Exxaro for sustainable growth and impact

Business continuity and crisis management plans

The board adopted an emergency response plan in 2019, focusing on capability interfaces for crisis management and business continuity, to ensure integrated disaster or incident response and recovery.

The RBR committee oversaw the process of updating the following business continuity governance documents:

  • Emergency response plan
  • Crisis management policy
  • Business continuity plan
  • Information management disaster recovery plan to reflect changes in the internal and external environment

Furthermore, this process sought to align BUs with the board-approved business continuity plan template, which is aligned to ISO 22301 and British Standards Institution 11200:2014.

Internal reporting

We introduced a new format for internal reporting to the board in 2022. Management is required to detail the outcomes of proposed recommendations to the board in respect of:

  • Strategy implications
  • Financial implications
  • Risk and compliance analysis
  • ESG implications


The board is committed to clear and comprehensive financial reporting and disclosure as well as constructive shareholder engagement, including transparency of activities and performance. The board therefore ensures that reports issued by the company enable stakeholders to make informed assessments of the group's performance as well as its short, medium and long-term prospects.


Refer to the assurance report for detail on assurance over key sustainability information in this report.

Performance evaluation

KPIs track the execution of Exxaro's strategy for the board, board committees, group and energy executive committees.

Exxaro uses a strategic performance dashboard that supports reporting on the achievement of these KPIs. The dashboard was reviewed in 2022 and its reporting philosophy revised. To measure execution of Exxaro's refined Sustainable Growth and Impact strategy, reporting will focus on exceptions (out of appetite or worst tolerable) going forward to ensure execution and tracking of performance towards achieving the strategy and desired portfolio.

Through a cascade principle, the group executive committee drives and reports on the selected board KPIs. The status of the strategic performance dashboard is reported at board meetings throughout the year, focusing on reporting to the board what matters.

Strategic performance dashboard

Performance targets to support our Climate Change Response strategy

To strengthen GHG mitigation and business resilience efforts, we included targets on water security and efficiency as well as energy efficiency in the group-wide GIS in 2022.

The energy efficiency targets relate to diesel and electricity consumption. Diesel accounts for over 95% of our scope 1 GHG emissions, while coal-based electricity is 100% of our scope 2 emissions.

Implementation of these two KPIs is a progression of our Climate Change Response strategy, our goal to be carbon neutral by 2050 and further alignment with the TCFD.

Applying good corporate governance to support the achievement of our strategic objectives

Purpose: Powering better lives in Africa and beyond

Vision: Resources powering a clean world

Board-approved strategic objectives 1
Transition at speed and scale
Make our minerals and energy business thrive
Empower people to create impact
Be carbon neutral by 2050
Become a catalyst for economic growth and environmental stewardship
Board-approved strategic KPIs and performance Core operating margin Capital project delivery Number of fatalities Carbon intensity (scope 1 and 2 GHG emissions) B-BBEE dtic scorecard target
Board-approved targets 20% 0% Zero 5% less than actual in the previous year Level 1
Corporate governance measures
  • Board-approved Sustainable Growth and Impact strategy
  • Audit committee oversight on financial reporting matters
  • Investment committee review and monitor material acquisitions, mergers/ investments
  • Enabling Group Governance Framework and group-wide policies
  • Review of group-wide delegation of authority
  • Subsidiary delegation of authority review in 2023
  • Revised board and committee reporting template implemented to address strategy, risk, compliance and ESG impacts
  • RBR committee oversight of resilience, risks, compliance and information management governance oversight
  • Safety performance
  • Retain "safety moment" as standing agenda item for all board, committee and executive meetings
  • Board-approved diversity, equity and inclusion strategy
  • Remuneration committee, SERC and RBR committee oversight
  • Board members participate in annual Leadership Safety Day and BU safety indabas
  • Become carbon neutral through our board-approved decarbonisation plan
  • Board composition to include sustainability skills and experience
  • Board-approved climate change response strategy, climate change position statement and performance targets
  • Performance targets included as part of the group-wide GIS in 2022
  • SERC and RBR oversight
  • Establishment of ESG steering committee
  • Board-approved social impact strategy
  • Board-approved diversity, equity and inclusion strategy
  • Revised application of Exxaro's ESD initiatives
  • SERC and RBR committee oversight
  • Board composition through the nomination committee
  • Board-approved policies

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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