Exxaro Resources Limited
Integrated report 2022

Sustainable growth and impact

Our Sustainable Growth and Impact strategy is anchored on measurable and multi-stakeholder value creation. The strategy aims to transform Exxaro in a systematic and integrated manner into a diversified company that will transition from a coal base to a minerals and renewable energy business that will thrive in a low-carbon future.

As we start implementing our strategy, we are refining and consolidating the drivers of our strategic direction, how we measure our future success and reflect on our past strategic performance. The board fully supports our strategy and we have clearly identified our future path to achieve our vision. We believe our sustainable growth can only be achieved if our communities and broader society benefit from our sustainable impact efforts. In 2022, we developed our Social Impact strategy to support the achievement of this goal.


Forces shaping our strategy

Understanding the narrowing opportunity and the growing exogenous risk as the world accelerates to a net zero carbon economy

We need to balance South Africa's socio-economic development, which relies on coal generated power, with supporting the transition to a low-carbon economy. These are major changes that will raise future challenges and increase external risks for those who do not adapt. They will also present significant opportunities for those who can evolve.

Our Response

The transition imperative

To responsibly enter a carbon-constrained future given our base as a carbon-intensive coal asset, our approach involves:

Climate change

Climate change increases competition for scarce resources like water and biodiversity between communities. Factors such as rising heat increase the risk of health and safety incidents at our operations.

Just transition

The transition to a low-carbon economy has significant socio-economic implications for our business and the communities in which we operate.

Energy transition

The growth in disruptive technology in the energy sector could displace our business in the medium to long term.


We believe we do not own coal assets but we are stewards of responsibly maximising their value. We have a responsibility to use these coal assets to build a sustainable business for our investors, employees and communities, and a sustainable future for the planet.

Energy transition

  • Coal and renewable energy businesses play a key role in energy security
  • Responsibly optimise the coal business
  • Repositioning the business to capture transition opportunities

Just transition

  • Prioritising workers, communities and value chain partners as we transition our business in a just manner


This informs 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


  • Diversify into resilient future-facing minerals and renewable energy, ensuring a significant 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

Strategic objectives

Transition at speed and scale

Make our minerals and energy businesses thrive

Empower people to create impact

Be carbon neutral by 2050

Become a catalyst for economic growth and environmental stewardship


These forces have increased in prominence over the past year. Significantly, the global energy crisis, exacerbated by the Russia-Ukraine conflict, increased global action for decarbonisation, and investor funding targeted to ESG equity funds. These trends support the positioning and direction of our strategy.

Transitioning to a resilient, diversified resources company

Minerals business

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Early value coal to maximise our high-quality assets

  • Continue to contribute to energy security in South Africa and beyond
  • Decarbonising will further strengthen our existing competitive advantage and extend the horizon of our coal business

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  • Diversify into minerals to support a low-carbon future
  • Diversify earnings and contribute to Exxaro's growth
  • Clearly defined investment criteria that ensure we invest in the right opportunities within geographies where we can execute
  • Balance sheet and capabilities provide a competitive advantage

Energy business

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Renewable energy

Build a leading global renewable energy solutions business by 2030

  • Own one of South Africa's leading managers of renewable assets
  • Strategy underpinned by three interdependent pillars: utility generation, distributed generation and services
  • Long-term cash flow stability

Sustainable impact is at the core of our purpose and future

  • Commitment to invest in and support the resilience of society in the just transition
  • Remain a responsible custodian of the assets entrusted to us, as evidenced in our ESG performance
  • Balancing acceptable value distribution to shareholders with investment for the long term for all stakeholders
  • Operate our businesses with social and environmental stewardship

Refer to our strategy for detail on our strategy, strategic development process and performance against our objectives.
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Driving transition through leadership
Driving value creation through transition
About our integrated report
Chairperson's statement
About Exxaro
Sustainable growth and impact
Our operating context

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Our business model
Our material matters
Our business risks and opportunities
Creating value through stakeholder engagement

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CEO's report
Our strategy: positioning Exxaro for sustainable growth and impact
Performance against our strategy and future focus
2022 strategic key performance indicators
Key strategic trade-offs

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Our leadership
Summarised governance report
Combined assurance for effective governance

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Finance director's overview
Operational performance
Business resilience
Our people
Social licence to operate: enabling our legitimacy
Our environment: stewardship and compliance
Responding to TCFD reporting requirements

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Our mineral resources and mineral reserves

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