Exxaro Resources Limited
Environmental, social and governance report 2022
We ensure strategy management is integrated with:
The board and executive committee measure and manage Exxaro's strategy and performance so that stakeholders can have a transparent and consolidated view of value creation and sustainability drivers.
Built-in risk appetite thresholds enable appropriate strategic decisions.
The dashboard links strategic KPIs and our material matters to present our sustainable value creation in terms of the relationship amongst the capitals we impact. Performance indicators (out of appetite, worst tolerable, best realistic, target or opportunity) show whether KPIs are within our risk appetite thresholds.
We aim for "target", and avoid "worst tolerable" or "out of appetite" to remain within our defined risk appetite. When necessary, we implement or improve controls to ensure we achieve our strategy objectives.
Matla control room
Our KPIs are outlined in the strategic performance dashboard below.
| Trend^ | KPI threshold | Out of appetite |
Worst tolerable |
best realistic |
Target | Possible waste or opportunity |
|
 |
Deteriorated | ||||||
 |
Improved | ||||||
 |
Unchanged | Indicator |  |
 |
 |
 |
 |
 |
New KPI this period | ||||||
 |
Natural capital |
| Trend based on indicator^ | ||||||||
| 2022 | 2021 | |||||||
| KPI | Strategy | Target | Actual | Indicator | Target | Actual | Indicator | |
| Incidents | ||||||||
| Reportable environmental incidents (levels 2 and 3) | Become a catalyst for economic growth and environmental stewardship | 0 level 2s 0 level 3s |
0 level 2sRA 0 level 3sRA |
|
6 level 2s 0 level 3s |
0 level 2s | |
|
| Compliance | ||||||||
| Stoppage directives (includes section 54 in terms of MHSA*) | Empower people to create impact | 0 | 7RA | |
0 | 2 | |
|
| Stoppage directives (includes directives in terms of NWA, NEMA and MPRDA**) | Become a catalyst for economic growth and environmental stewardship | 0 | 0RA | |
0 | 0 | |
|
| Valid authorisations in place | ||||||||
| Current operations | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | |
100% | 100% | |
|
| Projects | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | |
100% | 100% | |
|
| Compliance to valid licences/authorisations in place*** | ||||||||
| Current operations | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | |
100% | 96% | |
|
| Projects | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | |
100% | 99% | |
|
| Environmental liability provisions in place*** | ||||||||
| Commercial and captive operations | Become a catalyst for economic growth and environmental stewardship | Between 80% and 80% to 100% and 100% |
Between 50% and 80% | |
Between 80% and 80% to 100% and 100% | 72 | |
|
| Environmental management | ||||||||
| Carbon intensity (scope 1 tCO2e/total kilotonnes mined (kTTM)) | Be carbon neutral by 2050 | Actual for previous year less 5% |
0.5% reduction | |
Actual for previous year less 5% |
Actual for previous year less by more than 5% | |
|
| Carbon intensity (scope 2 tCO2e/kTTM) | Be carbon neutral by 2050 | Actual for previous year less 5% |
0.8% increase | |
Actual for previous year less 5% |
Current year less than previous year | |
|
| Water intensity (kL/tonne RoM) | Improving water efficiency | 0.15 to 0.18 | 0.15RA | |
0.20 | 0.149 | |
|
| Physical rehabilitation (actual versus budget) | Become a catalyst for economic growth and environmental stewardship | 0% deviation from budget | Between 25% and 50% deviation from budget | |
|
|||
| ^ | The trend-based indicators are in accordance with Exxaro’s internal sustainability framework. |
| * | Mine Health and Safety Act, 1996 (Act 29 of 1996) (MHSA). |
| ** | National Water Act, 1998 (Act 36 of 1998) (NWA), National Environmental Management Act, 1998 (Act 107 of 1998) (NEMA) and Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002) (MPRDA). |
| *** | Includes environmental authorisation, integrated water use licence (IWUL), water management licence, atmospheric emissions licence, environmental impact assessment, record of decision and reporting. |
 |
Human capital |
| Trend based on indicator^ | ||||||||
| 2022 | 2021 | |||||||
| KPI | Strategy | Target | Actual | Indicator | Target | Actual | Indicator | |
| Safety | ||||||||
| Number of fatalities (7 lost-time injuries) |
Empower people to create impact | 0 | 1RA | |
0 | 0 | |
|
| LTIFR# | Empower people to create impact | 0.06 | 0.05RA | |
0.11 | 0.08 | |
|
| Health | ||||||||
| Four accepted occupational health cases | ||||||||
| OHIFR# reported | Empower people to create impact | 0.18 | 0.16RA | |
0.31 | 0.16 | |
|
| People who received HIV/Aids awareness training | Empower people to create impact | 90% to 100% | 116.5% | |
90% to100% | 79.3% | |
|
| Employees who received awareness training and voluntarily tested for HIV/Aids | Empower people to create impact | 68% and above | 70.6% | |
68% and above | 71% | |
|
| HIV/Aids prevalence rate compared to country prevalence rate | Empower people to create impact | Less than country prevalence rate | 1% to 10% less the country prevalence rate | |
Less than country prevalence rate | 3.7% | |
|
| Skills | ||||||||
| Skills provision (percentage of appointment of employees within) | Empower people to create impact | 60% | 64%RA | |
60% | 62.17% | |
|
| Scarcity skills retention (percentage turnover) | Empower people to create impact | 5% | 4.4%RA | |
5% | 3.7% | |
|
| Security | ||||||||
| Fraud and corruption/asset destruction | Empower people to create impact | 0% | 0% | |
0% | 0% | |
|
| ^ | The trend-based indicators are in accordance with Exxaro’s internal sustainability framework. |
| # | Lost-time injury frequency rate (LTIFR) and occupational health incident frequency rate (OHIFR). |
Our employee having a lung function test at Matla clinic
 |
Social and relationship capital |
| Trend based on indicator^ | ||||||||
| 2022 | 2021 | |||||||
| KPI | Strategy | Target | Actual | Indicator | Target | Actual | Indicator | |
| Employment equity | ||||||||
| Black ownership at group level | Become a catalyst for economic growth and environmental stewardship | 30% | 47.1% | |
30.1% | 47.1% | |
|
| People with disability Representation | Empower people to create impact | 1.5% | 1.61% | |
1.5% | 1.59% | |
|
| Human resources development spend as % of payroll–Mining Charter III | Empower people to create impact | 5.0% | 5.53% | |
5% | 5.51% | |
|
| HDP✝> representation–top management | Empower people to create impact | 50% | 66.66% | |
50% | 66.66% | |
|
| HDP representation–senior management | Empower people to create impact | 60% | 68.91% | |
60% | 65% | |
|
| HDP representation–middle management | Empower people to create impact | 60% | 80.92% | |
60% | 78.52% | |
|
| HDP representation–junior management | Empower people to create impact | 70% | 81.16% | |
70% | 79.52% | |
|
| Women representation in top management bands | Empower people to create impact | 20% | 33.33% | |
20% | 33.33% | |
|
| Women representation in senior management bands | Empower people to create impact | 25% | 22.97% | |
25% | 20.48% | |
|
| Women representation in middle management bands | Empower people to create impact | 25% | 40.62% | |
25% | 38.19% | |
|
| Women representation in junior management bands | Empower people to create impact | 30% | 32.41% | |
30% | 29.25% | |
|
| Business sustainability | ||||||||
| B-BBEE level | Empower people to create impact | Level 1 | Level 3 | |
Level 1 | Level 2 | |
|
| Enterprise development (percentage of NPAT✝) | Empower people to create impact | 1% | 0.4945% | |
1% | 0.308% | |
|
| Supplier development (% of NPAT) | Empower people to create impact | 2% | 0.8301% | |
2% | 0.694% | |
|
| Socio-economic development (percentage of NPAT) | Empower people to create impact | 1% | 0.93% | |
1% | 0.56% | |
|
| Skills development expenditure on learning programmes in the learning programme matrix for black people as a percentage of leviable amount–B-BBEE | Empower people to create impact | 3.0% | 3.15% | |
3% | 3.20% | |
|
| SLPs✝* | ||||||||
| Project delivery measure–local economic development projects per SLP time variance from plan | Become a catalyst for economic growth and environmental stewardship | 0% behind schedule | 40% behind schedule | |
0% behind schedule | 8% behind schedule | |
|
| Cost variance from plan | Become a catalyst for economic growth and environmental stewardship | 0% over budget | 16% over budget | |
0% over budget | 19% over budget | |
|
| ^ | The trend-based indicators are in accordance with Exxaro’s internal sustainability framework. | |
| ✝ | Historically disadvantaged persons (HDP), net profit after tax (NPAT) and social and labour plans (SLPs). | |
| * |  Refer to SLP performance. |
 |
Manufactured and |  |
Intellectual capital |
| Trend based on indicator^ | |||||||||
| 2022 | 2021 | ||||||||
| KPI | Strategy | Target | Actual | Indicator | Target | Actual | Indicator | ||
| Capital project delivery measure | |||||||||
| Capital projects time overrun | Make our minerals and energy businesses thrive | 0% behind schedule | 0.4% over schedule | |
0% behind schedule | 10.3% | |
|
|
| Capital projects cost overrun | Make our minerals and energy businesses thrive | 0% over budget | 0% over budget |
|
0% over budget | 3% | |
|
|
| Operational performance | |||||||||
| System availability (Core P1 and ERP Solutions) | Make our minerals and energy businesses thrive | 97% | 97.49% | |
97% | 99% | |
|
|
| Information management projects (cost overrun) | Make our minerals and energy businesses thrive | 0% over budget | 5% under budget | |
0% over budget | 0% | |
|
|
| Information management projects (time overrun) | Make our minerals and energy businesses thrive | 0% behind schedule | 0% behind schedule | |
0% behind schedule | 0% | |
|
|
 |
Financial capital |
| Trend based on indicator^ | ||||||||
| 2022 | 2021 | |||||||
| KPI | Strategy | Target | Actual | Indicator | Target | Actual | Indicator | |
| Adjusted operating margin | Make our minerals and energy businesses thrive | 20% | 35.2% | |
20% | 24.4% | |
|
| Adjusted ROCE# | Make our minerals and energy businesses thrive | 20% | 46.9% | |
20% | 33.6% | |
|
| Net debt to EBITDA (excluding Cennergi) | Make our minerals and energy businesses thrive | 1.5 times | * | |
<1.5% | * | |
|
| ^ | The trend-based indicators are in accordance with Exxaro’s internal sustainability framework. |
| # | Return on capital employed (ROCE). |
| * | Exxaro is in a net cash position. |
Medical professional performing clinical tests at Matla clinic
Report Index