Responding to TCFD reporting requirements

This is Exxaro's third year of reporting in line with the TCFD recommendations. This reflects Exxaro's internalised and proactive approach to climate change and our ESG commitments.

The table below provides an overview of our responses and links to relevant coverage in this report, our ESG report and other supporting documents available online. We published a separate Climate Change Response strategy and our climate change position statement in 2020. These provide additional detail on some areas of our response to climate change.

	Requirement	Progress	Further reading
1	Describe the board's oversight of climate-related risks and opportunities.	Climate change is an integral consideration and as such is embedded in our governance processes. The board takes ultimate responsibility and is supported by its subcommittees. The CEO and chairperson oversee climate-related risks and opportunities.	Governance(ESG report) Governance for value creation
2	Describe management's role in assessing and managing climate-related risks and opportunities.	Ultimate responsibility from a management perspective rests with the CEO. She is supported by the executive committee. Climate change is a key consideration and our response to it is embedded in our Sustainable Growth and Impact strategy.	Transitioning into a low-carbon business (ESG report) Our strategy
3	Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term.	Climate-related risks and opportunities are embedded in our risk management processes.	Transitioning into a low-carbon business (ESG report) Business risks and opportunities
4	Describe the impact of climate-related risks and opportunities on the organisation's, strategy, and financial planning.	Climate change risks and opportunities are embedded into all strategic, operational and financial matters. Our strategy details how climate change is driving our journey to resilience.	Transitioning into a low-carbon business (ESG report)   Our strategy
5	Describe the resilience of the organisation's strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario.	We undertook scenario analysis to understand our business resilience from a physical and transition risk perspective. Our strategy is designed to ensure our resilience to different climate scenarios, including 2°C or lower. Our strategy details how we are responding to risks and opportunities associated with the low carbon transition. Furthermore, our Climate Change Response strategy report and climate change position statement include information on this analysis.	Climate Change Response strategy report (2020 investor tab) and climate change position statement (sustainability tab) Our strategy
6	Describe the organisation's processes for identifying and assessing climate-related risks.	We take a proactive approach to identifying climate-related risks.	Transitioning into a low-carbon business (ESG report), Climate Change Response strategy report (2020 investor tab) and climate change position statement (sustainability tab) Our strategy
7	Describe the organisation's process for managing climate-related risks.	Climate-related risks are managed within our ERM framework.	Transitioning into a low-carbon business (ESG report) Business risks and opportunities
8	Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organisation's overall risk management.	Climate-related risks are integrated into overall risk management and factor as one of the top 20 risks facing the business.	Business risks and opportunities
9	Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management.	Climate risk metrics are disclosed in the ESG report for emissions, energy, water, land use and waste. The remuneration report discloses how climate-related issues are incorporated into our remuneration practices.	Environment (ESG report) and remuneration report (ESG report)
10	Disclose scope 1, scope 2, and, if appropriate, scope 3 GHG emissions, and the related risks.	We report extensively on our scope 1, 2 and 3 emissions in our ESG and CDP reports.	GHG emissions (ESG report)  and CDP report (www.cdp.net)
11	Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.	We have committed to being carbon neutral for our scope 1 and 2 emissions by 2050.	Transitioning into a low-carbon business (ESG report)   Our strategy