Exxaro Resources Limited
Integrated report 2022
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.
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.
The transition imperative
To responsibly enter a carbon-constrained future given our base as a carbon-intensive coal asset, our approach involves:
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.
The transition to a low-carbon economy has significant socio-economic implications for our business and the communities in which we operate.
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.
This informs our Sustainable Growth and Impact strategy
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.
Early value coal to maximise our high-quality assets
Build a leading global renewable energy solutions business by 2030
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Refer to our strategy for detail on our strategy, strategic development process and performance against our objectives. |
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