Building momentum and resilience for sustainable growth and impact

Welcome to our 2023 integrated report, which explains how we are building momentum and increasing our resilience in a turbulent macro-economic climate in line with our ambition to achieve sustainable growth and impact.

Dr Nombasa Tsengwa

Chief executive officer (CEO)

The previous year laid bare the intricate tapestry of challenges that define our times – from geopolitical upheaval to the tenuous responses of global markets to surging inflation and shifting energy paradigms.

As the clarion call for a sustainable future grows louder, we recognise our dual imperative: to bolster energy security by ensuring a reliable coal supply and to navigate our strategic transition towards cleaner energy. This commitment is crucial, not just for maintaining the reliability of our nation's energy supply but as a cornerstone for supporting South Africa's economic growth and prosperity.

We aim to grow from the exceptional business we have developed over the past 18 years, continuously building momentum and resilience for sustainable growth and impact. Our rich history is the foundation for our progress, moving from a past focused solely on mining to embracing the energy landscape of the future with an approach that emphasises energy security, endorses resources for a cleaner world and supports a just transition to a carbon-neutral future by 2050.

To support this forward-looking approach, we meticulously evaluated our Sustainable Growth and Impact strategy during the year regarding its progress, timing and scenario planning. This included endorsing a unified ESG framework, developing an ESG policy and enhancing our strategic approach to sustainability. The creation of a strategic performance management dashboard further amplifies the visibility of strategy execution.

Our energy initiatives and the strategic selection of minerals for diversification reflect our proactive approach to the global energy transition and our contribution to a carbon-neutral future. The lessons learned over the past two years in evaluating potential opportunities in critical minerals and energy have refined our approach, ensuring expansion efforts are well considered and aligned with our core sustainability and value creation principles. These experiences have reinforced our commitment to resilience – withstanding market pressures and preparing to capitalise on opportunities with agility and foresight.

We have also made significant progress in our Climate Change Response strategy by creating a comprehensive decarbonisation roadmap with an ambitious goal of achieving carbon neutrality. This roadmap, in its mature phase, outlines the actions that will guide the group towards a sustainable transition, anticipating more stringent environmental regulations. Our Lephalale solar project (LSP) is a tangible representation of our commitments and is poised to deliver a 27% reduction in scope 2 emissions on completion. This project complements our core coal business and reflects our comprehensive approach to energy provision.