Our ESG report provides a holistic view of our performance, how we manage and measure our impact on the environment and society, and our commitment to good corporate governance. The content in this report supports the information provided in our integrated report, and is aimed at our broader stakeholder audience.
This report contains material information about our ESG performance for the period 1 January 2023 to 31 December 2023 (the 2023 financial year). It covers financial and non‑financial ESG information of our wholly owned and joint operations in South Africa.
The reporting boundary incorporates material information about the Cennergi group of companies (Cennergi). We consolidated material information about Cennergi Proprietary Limited’s safety incidents into the group’s results.
We include limited information on operations where we:
Our reporting suite is guided by and applies the following:
| IR | ESG | AFS | CMRR | |
| Materiality determination process | X | X | ||
| Integrated Reporting Framework | X | X | X | |
| Companies Act of South Africa, 2008 (Act 71 of 2008), as amended (Companies Act) | X | X | X | X |
| International Financial Reporting Standards (IFRS®) Accounting Standards* | X | X | X | |
| JSE Limited (JSE) Listings Requirements and Debt Listings Requirements | X | X | X | X |
| Department of Trade, Industry and Competition (dtic) Broad-based Black Economic Empowerment (B-BBEE) Codes of Good Practice | X | X | X | |
| The effective parts of the Broad-based Socio-economic Empowerment Charter for the Mining and Minerals Industry 2018 (Mining Charter III) | X | X | ||
| King IV Report on Corporate Governance™ for South Africa, 2016 (King IV)** | X | X | X | |
| South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (SAMREC Code) | X | X | X | X |
| In accordance with Global Reporting Initiative standards | X | X | ||
| United Nations Global Compact (UNGC) | X | X | ||
| Sustainability Accounting Standards Board | X | X | ||
| Task Force on Climate-Related Financial Disclosures (TCFD) recommendations*** | X | X |
| * | As issued by the International Accounting Standards Board. |
| ** | Copyright and trademarks are owned by the Institute of Directors South Africa and all of its rights are reserved. |
| *** | This now falls under the custodianship of the IFRS Foundation. |
The executive committee, various departmental heads and board sub-committees review the report before submission to the board for review and approval. Certain sections are also reviewed by external assurance providers and external experts. Select strategic sustainability key performance indicators (KPIs), marked as reasonable assurance (RA) in this report, were assured by independent assurance provider, KPMG Inc.
Refer to the assurance report for details.
Materiality considerations serve as a crucial guide for our reporting practices. The matters we deem material are those that significantly influence our ability to create and sustain value, not only for our organisation but also for our stakeholders and the natural environment.
We distinguish the information to include in our reporting suite through a double materiality determination process, which identifies the matters that impact our ability to create enterprise value (financial materiality) and our impact on the environment, communities and society (impact materiality).
Recognising that materiality is dynamic in nature, the process is conducted annually, allowing us to regularly and timeously reflect on matters that may evolve from being material from an impact perspective to being financially material. We group these material matters into themes that link to the resources we use and affect.
Refer to the integrated report for details about our materiality determination process.
Matters that could substantively affect our ability to create value in the short (one to five years), medium (six to 10 years) or long term (>11 years) are unpacked in our integrated report, with detailed disclosure on ESG-related matters unpacked in this report.
The 2023 review identified 35 material matters, which were grouped into seven overarching themes, detailed on the next page.
Operation and financial
Adapting to a changing context
Material matters
Detailed disclosure
The operating context is changing rapidly. Social, political and economic issues all impact our ability to create value. We operate in a long-term asset class with significant infrastructure investment. To remain competitive, we must respond to the current context and anticipate the future.
Material matters
Driving business resilience
Material matters
Detailed disclosure
Underpinning our strategic objectives is the drive to enhance our business resilience through safe production, delivering financial results, effective capital allocation, compliance excellence, entrenching innovation and capitalising on digitalisation.
Material matters
Detailed disclosure
Executing our strategy
Material matters
Detailed disclosure
Climate change is not a refutable occurrence. We are committed to the Paris Agreement and have established a strategy and business objectives to respond to the short and long-term risks and opportunities presented by climate change.
Material matters
Environment
Responsible environmental stewardship
Material matters
Detailed disclosure
We acknowledge the impact of mining in our ecosystem. We must ensure we are responsible stewards of natural resources upon which our operations and communities rely to ensure a sustainable future for our employees, communities and the planet.
Material matters
Social
Building sustainable communities
Material matters
Detailed disclosure
Our business activities impact our stakeholders, and they, in turn, respond to these impacts. Our social licence to operate depends on how we look after our communities and the natural world around us, and our adherence to legislation.
Material matters
Helping our people thrive
Material matters
Detailed disclosure
Exxaro’s employees are the enablers of our performance. To deliver on our strategic goals requires a safe working environment and a culture that supports adaptability and innovation, while leveraging the strength of DEI.
Material matters
Governance
Principled governance
Material matters
Detailed disclosure
We conduct ourselves so as to strengthen our business reputation as a good corporate citizen and bolster our resilience in a changing environment.
Material matters
Detailed disclosure
Report Index
IR