The investment we make in our communities demonstrates the importance we place on our social responsibility. Guided by sustainability, stakeholder inclusiveness and collaboration, we uplift and develop our host communities to build better futures.
Started phase 2 of the Phumulani agri-village food garden
Completed the municipal capacity building programme
Attended the Lephalale Investment Summit, where the municipality shared its vision of growing into a metropolitan city, with a focus on manufacturing, agriculture, SMME development, education and skills development
To create socio-economic development, address social challenges and build resilience in our host communities, thereby ensuring the sustainability of the business.
KPIs:
Measures related to the objectives of the Social Impact strategy:
Our community development initiatives and programmes support the objectives of our Social Impact and Sustainable Growth and Impact strategies. For the delivery of the Social Impact strategy, a baseline assessment was conducted to provide a holistic status of the community requirements. The assessment outcomes have formed part of the short, medium and long-term plans for the Social Impact strategy.
Empower people to create impact
Become a catalyst for economic growth and environmental stewardship
Our Social Impact strategy ensures delivery beyond compliance with regulatory requirements. In implementing initiatives beyond our SLPs, we partner with various organisations to:
Communities, SMMEs and stakeholder forums
To uplift and empower through financial and non-financial investments, skills development and employment opportunities
Government
To comply with legislation promulgated by the DMRE, DoE, DoH and dtic
Minerals Council and ESD Community of Practice
To contribute inputs on socio-economic development and benchmarking across the industry as part of the Community Development workstream, to share information on ESD best practice
National and provincial development finance institutions
To collaborate in contributing to socio‑economic development
BUSA
To make a financial contribution towards BUSA, a government intervention to maximise inclusive economic growth by inspiring confidence and creating jobs
NBI, Seda, GIBS and SAICA
To collaborate in providing skills development programmes to host community members
Programme partners
To collaborate on education and skills development projects and programmes with partners including the National Business Initiative, Impact Catalyst, Cotlands, SE Holdings, University of Johannesburg, Siyakhana Growth and Development, Komatsu, Youth Employment Services (SME.TAX and Lula Rides)
Future focus
We will continue to drive delivery of the Social Impact strategy in terms of education, land use management and SMME development, as well as create value through collaboration and partnerships.
We also plan to advance the Impact Catalyst's integrated waste management study and will be moving the material recovery facility and waste advocacy proposals into implementation phase. We are seeking funding partners for the viable feasibilities.
We strive to leave a positive legacy in our communities by implementing large-scale community development initiatives. Our Social Impact strategy guides this approach and is a shift away from a compliance-based focus, which does not adequately address communities' longer- term needs. The strategy enables us to create lasting social impact by enhancing the quality and duration of projects to contribute to greater education, skills development and job creation, thus building the resilience of our communities and ensuring delivery beyond compliance.
We achieve tangible impact in our communities through the three pillars of the Social Impact strategy:
Land use management (MSP)
Through the MSP, we ensure black emerging farmers have access to resources that guarantee the sustainability of their businesses. We provide holistic support through mechanisation, inputs, access to markets, funding and skills development to enable emerging farmers to commercialise their businesses.
Our land use management strategy assists us to effectively protect and manage current and future operations through agricultural leases, donations, biodiversity and conservation, and utilising erven for employee housing, offices and training centres.
Education
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Our education initiatives aim to improve the quality of school education, and target ECD and whole school development (Education initiatives and programmes). |
Through ECD, we build the educational foundations for future learning and enhance physical, psychological, cognitive and social development for children between the ages of zero to five. Our ECD programme objectives are to:
Through our whole school development focus, we will ensure our communities benefit from sustained good quality education throughout primary and high school.
SMME development
We provide financial support, skills development and training to SMMEs to improve their service/product delivery and increase the representation of local black- owned suppliers in our supply chain.
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The ESD programme offers financial support and development programmes to black-owned suppliers and black entrepreneurs (Enterprise and supplier development). Our supply chain activities increase the participation of black and women- owned suppliers from our communities |
Amakhala Emoyeni and Tsitsikamma promote education and skills development, social welfare, healthcare, general administration and enterprise development. The socio-economic development and enterprise development commitments for the LSP are only applicable during the operation phase.
The following funding structures support the achievement of social impact by serving as conduits for community donations and sponsorships:
Exxaro Chairman's Fund (ECF) and Foundation
Exxaro Aga Setshaba NPC (formerly Matla Setshabeng NPC)*
Amakhala Emoyeni Community Fund Trust (AECFT)
Tsitsikamma Community Windfarm Trust (TWFT)
Tsitsikamma Development Trust
ESD programme
| * | We renamed Matla Setshabeng NPC to Exxaro Aga Setshaba NPC to better represent its involvement in multiple communities, not just Matla. |
These funding structures are funded through various sources (detailed below) and collectively referred to as Exxaro Group Social Investment Structures. Some funding is compliance driven, such as SLPs and the dtic scorecard, and others are value-add investments beyond compliance, such as funding from Aga Setshaba NPC. To further enhance the delivery of impact at scale, we are simplifying our funding structures to enable better coordination and enhance the financial efficiency of our impact efforts.
The AECFT and TWFT disburse funds and manage programmes to ensure transparency and community participation. Community projects outside a 50km radius of the windfarms are funded through Cennergi's CSI budget.
AECFT and TWFT
receive 2.1% of revenue generated by the windfarms, which must be spent
quarterly on socio-economic upliftment and enterprise development projects within 50km
of the windfarms. The LSP committed to spend 0.1 % of total construction and operation
cost value on skills development, 0.1% of total construction and operational cost value
on supplier development, and 1.5% of revenue on enterprise development and
socio-economic development projects with local communities and municipalities.
We plan future SLPs in accordance with social impact principles and impact areas in consultation with communities and government when developing municipal integrated development plans. Through localised, in-sourced project management, we develop intellectual capital to leverage continuous improvement in SLP delivery.
SLP project benefits include:
We also consider social impact principles in future mining and energy operations. Discretionary expenditure continues from the ECF and Exxaro Aga Setshaba NPC (primarily directed at complementary projects developed through the SLPs and REIPPPP), alongside regulatory expenditure - for example, where SLP projects develop school infrastructure (as required by the DMRE), discretionary funding will complement teacher development and other related programmes.
The SERC, through its statutory provisions, has oversight of community engagement and development, and oversees the implementation of the Social Impact strategy. The Social Impact strategy is an integrated approach of several executive functions, including people and performance, sustainable impact, investor relations and supply chain management to maximise its development, impact and sustainability on communities.
The chief sustainable impact officer is responsible for integration and execution.
Cennergi's internal community liaison officers and local community trustees oversee formal and informal community engagement with local communities, mayors, government departments and other groups such as local business forums and youth, among others.
Invested in social investment projects for socio-economic development (SLPs and CSI)R86.91 million
(2022: R181.31 million)
A combined total investment contributed by Exxaro and Cennergi in socio‑economic and enterprise development programmes: R223.51 million
(2022 R205.81 million)
Invested in CSI R71.95 million
(2022: R167.93 million)
Number of community members benefited 41 867
(2022: 1.17 million)
Invested in SLP projects R14.96 million
(2022: R13.38 million)
Jobs created for SLPs 29
(2022: 83)
Implementation of current five-year SLPs continues at BUs until completion as per our mining right commitments in Limpopo and Mpumalanga
Social investment projects in local economic development excluding ESD financial support (Rm)
| * | R9.61 million for education included in 2022 ESG report, but impact seen in 2023. |
Implementation of our prevailing five-year SLPs experienced delays due to challenges with small enterprises and suppliers lacking relevant skills, maturity and capabilities. The difficult economic environment also impacted the viability of these enterprises and suppliers, with some withdrawing due to liquidation.
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We are managing these challenges through ESD interventions aimed at building capabilities (Exxaro Aga Setshaba NPC and ECF contributions section and Supply chain sustainability). In addition, a developmental approach through technical and administrative mentoring support has been given by the project teams to guide local contractors. |
SLP project expenditure of R14.96 million (2022: R13.38 million) covered some projects in planning and implementation stages as outlined below.
Exxaro spent R14.96 million, benefiting 50 630 people, with our projects still in progress potentially benefiting 71 752 people:
| Completed | 2023 spend | Beneficiaries |
| Matla ESD hub, which was handed over to the local municipality in May 2023 | R0.36 million | 11 |
|---|---|---|
| Belfast roads rehabilitation project, of which phase 1 was handed over to the Emakhazeni municipality (beneficiaries from 2022 included) | R1.14 million | 48 000 |
| Tshikondeni hall electrification | R0.6 million | 1 179 |
| Mafube Primary School | R0.05 million | 240 |
| Bonginhlanhla School phase 2 | R0.21 million | 1 200 |
| In progress | 2023 spend | Potential beneficiaries |
| Lephalale ECD centre | R0.72 million | 2 000 |
|---|---|---|
| Marapong sport, arts and culture precinct | R0.12 million | 36 227 (21 720 youth) |
| Marapong potable water pipeline | R1.1 million | |
| Paarl sewer rehabilitation | R0.29 million | |
| Lephalale ESD programme | R0.45 million | |
| Waste management at Lephalale | R2.4 million | 30 745 |
| Nelsonskop Primary School hall and classrooms | R7.32 million | 1 580 learners with 29jobs created |
| Bonginhlanhla School phase 4 | R0.20 million | 1 200 |
Although our implementation performance on existing SLPs was unsatisfactory, REIPPPP and other CSI expenditure were satisfactory.
The REIPPPP expenditure activities at our energy business performed better, despite the intensity of quarterly expenditure targets to maintain and fulfil licence to operate and related conditions. This business is required to spend 2.1% of quarterly revenue on socio-economic development (1.5%) and enterprise development (0.6%) activities in communities affected by its operations.
The GaNala ESD incubation hub built at Kriel in 2020 and 2021 trained 11 entrepreneurs in 2023.
Five staff members for the ECD centre of excellence at Lephalale were recruited and trained, and learning resources as well as a vehicle were procured, to assist programme execution. The centre supports 49 other centres with learning material and training, in partnership with Cotlands. Professional training was provided to 20 ECD practitioners from community ECD centres.
We supported the Rietkuil resettled community through skills development and opportunities for qualifying youth, support for the provision of electricity, procurement of school uniforms for all learners and the completion of phase 1 of repair work to six houses.
Our employees were involved in school food gardens and a career expo at Olievenhoutbosch Secondary School as part of community volunteer projects during working hours.
Volunteers from Exxaro assisted learners from Olievenhoutbosch Secondary School to set up a food garden and provided agricultural skills training to community members. Our volunteer team launched similar food gardens at five other schools, including Sefako Makgatho, Matseke and Kgabo primary schools in Atteridgeville with great success in the last two years.
The Matla ESD hub was handed over to the local municipality in May 2023. The hub has since hosted a driving school programme held by Exxaro, Jodan Construction and Komatsu Mining Corp, which aims to train 60 communities to obtain driving licences and participate in community engagements.
Junior pioneer pilot programme
We introduced this programme as a two-year community-based digital initiative in the Emakhazeni local municipality in 2022 to increase exposure and interest in 4IR, and science, technology, engineering and mathematics subjects, improve grade 8 and 9 learners' marks in these subjects, encourage design thinking and technological learning, and stimulate a new generation of problem-solving innovators within the Emakhazeni community.
To date, the programme has had the following positive impacts:
Exxaro Aga Setshaba NPC delivered high-impact initiatives at a cost of R26.93 million (2022: R127 million), while the ECF contributed R27.43 million (2022: R24.43 million), benefiting 41 867 community members. We delivered the following projects through partnerships:
| Project | Investment |
|
Lephalale and Mpumalanga |
|
|
Information and communications technology (ICT) programme (which started in 2022) in partnership with Impact Catalyst to provide access to information resources and knowledge to 41 550 learners and community members through 51 Wi-Fi hotspots and 20 ICT labs. We identified 141 schools and 25 community sites in the Emakhazeni, Emalahleni and Lephalale municipalities for Wi-Fi infrastructure installation to benefit 35 700 learners. 38 schools and 14 sites were targeted as part of the first phase. To date, infrastructure has been installed at 37 schools and 13 community sites, and 11 sites in Lephalale, Belfast and Matla have gone live. The programme was set to be completed by July 2023 but was delayed due to the stakeholder engagement process, finalisation of SME participation and prolonged internet service provider installation process. It is now planned to be completed in the first quarter of 2024. |
R30 million paid in 2022 |
| A partnership with Curro through the Ruta Setshaba Foundation to give 20 underprivileged learners per year access to quality education from grades 8 to 12, starting in 2023. 20 learners were selected in 2023 as the second cohort for the 2024 period | R4.04 million paid in 2023 |
| National and intra-continental | |
| Donation to BUSA to maximise inclusive economic growth by inspiring confidence and creating jobs | R0.87 million |
| Exxaro contributed towards environmental conservation, through its partnership with the Peace Parks Foundation. Further donations were made to Botswana for the same course | R3.1 million |
In 2022, Exxaro Aga Setshaba funded the Impact Catalyst's feasibility study for an integrated waste management programme on waste coal ash, waste tyres, landfill waste and waste pickers. We envisage that 100 jobs will be created and five to 10 SMMEs will participate in the circular economy. The study has been completed and we are in the process of engaging implementers and co-funders, which we anticipate to conclude by the end of the second quarter of 2024. This will inform the development of the waste circular economy plan included in the Lephalale local municipality's integrated development plan, aligning with Exxaro's decarbonisation plan.
Case study:
Municipal capacity building programme – a concerted and sustainable response to improved local service delivery
In contributing to Exxaro's mission of powering better lives and creating sustainable value for its stakeholders, we partnered with the NBI's technical assistance, mentorship and development team, the Department of Cooperative Governance and Traditional Affairs and the Waterberg and Lephalale municipalities in a municipal capacity building programme. This programme emerged as a strategic and sustainable response to the president's Thuma Mina initiative, which aims to address local municipalities' constrained capacity linked to poor service delivery, infrastructure development and limited engagement within our host communities.
This three-year programme will be completed in March 2024. The programme addresses technical and leadership skills gaps to accelerate service delivery and prepare for future local economic development and growth. Over the course of the programme, 54 mentees were guided by 15 mentors on different aspects of municipal service delivery.
The programme is aligned with Exxaro's purpose of powering better lives and has yielded significant benefits:
A feedback session was held in November 2023 with Exxaro management, Waterberg district municipality and Lephalale local municipality to assess the impact, challenges and sustainability of the programme.
We invested R40.4 million (2022: R80.9 million) in community education to benefit 25 000 learners in 2023. This was funded from the various investment structures.
| Project | Investment |
| School infrastructure and resources | R8 845 158.22 |
|---|---|
| Construction of Nelsonskop School Hall and a block of classrooms (Lephalale) | |
| Phase 4 of construction of grade R block at Bonginhlanhla School (eMalahleni) | |
| Whole school development programmes | R21 929 707.5 |
| Matric academic camps | |
| Learners' hearing and eyesight tests and the provision of hearing aids and spectacles | |
| Establishing school gardens | |
| ECD | R1 218 330.78 |
| Practitioner training | |
| Research and development | R8 426 803.50 |
| University chairs | |
| Total | R40 420 000 |
Case study:
Advancing food security and sustainable livelihoods in the Phumulani agri-village
The Phumulani agri-village food garden, in the resettled Phumulani community, has moved into phase 2, creating more opportunities for food security, training, employment and sustainable income. The project, a multi‑stakeholder partnership between Exxaro, Siyakhana Growth and Development, the University of Johannesburg and Komatsu, currently employs 14 beneficiaries who have all received cross-training in poultry and vegetable gardening.
In phase 2, two greenhouses, a wormery, biogas plant and poultry section were erected, giving access to training and employment opportunities for four more members of the village. The project has been designed with success and sustainability in mind.
The food garden is currently experiencing challenges such as conflicts between beneficiaries, theft and vandalism. Additionally, extreme weather conditions caused substantial damage to the greenhouses, bringing a halt to production and further putting strain on beneficiary morale. We have repaired the greenhouse tunnels, and we have planned engagements with various stakeholders to develop mitigation measures to these challenges and foster sustainability.
Cennergi's socio-economic and enterprise
development programmesIn total, R25.3 million (2022: R24.5 million) was spent on socio-economic development initiatives, including education, welfare, agriculture development and health.
TWFT invested R10.9 million in host communities (2022: R10.7 million), reaching more than 2 000 people and creating 130 jobs. AECFT invested R14.4 million (2022: R13.8 million) in host communities, reaching more than 2 500 people and creating 220 jobs.
| Programme | Investment |
| TWFT ECD at six crèches (2022: six) for 185 children (Early Inspiration, as implementation agent, created 26 jobs with training and capacitation for national qualifications framework level 2 ECD practitioners and cooks, and parental support and educational resources) |
R2.1 million (2022: R1.8 million) |
|---|---|
| Monthly stipends for eight teachers (2022: five) to fill school governing body vacant posts at Kareedouw Primary School, Loerie Primary School and Qhayiyalethu High School in the Eastern Cape | R444 613 (2022: R189 000) |
| Bursaries coordinated by Masinyusane Development Organisation for 12 students (2022: 20) |
R2.5 million (2022: R2.6 million) |
| Free internet connectivity for 654 AmaMfengu households (Wittekleibos, Snyklip and Ekuphumleni communities) in partnership with Herotel to access online procurement platforms, SMME funding, jobs, entrepreneurship workshops and seminars, among other opportunities | R43 266 (2022: R88 879) |
| Renovating Wittekleibos community hall, to be completed in January 2024, created 70 temporary jobs and empowered seven local SMMEs | R1
million (2022: R3.5 million) |
| Purchasing 1 045 pairs of school shoes for Clarkson Primary and Qhayiyalethu High School learners | R287 370 |
| Accommodation of 86 grade 12 learners from Qhayiyalethu High school at Paul Sauer High School hostel and monthly stipends for three school governing body teachers | R712 490 |
| Partnership with Masinyusane Development Organisation on the Youth Jobs and Literacy programme which hired and trained 16 previously unemployed youth to teach 225 learners from Clarkson Primary school and 176 children from four local ECDs to read and write | R305 000 |
| Environmental impact assessment process for the proposed Guava Juice Piggery project | R344 836 |
| NNT Women Poultry operational costs and the construction of a second poultry house which will enable the business to expand from 1 620 egg layers to 4 000 by 2024, in partnership with Nulaid eggs | R1.8 million |
| Supporting three Wittekleibosch vegetable garden initiatives | R306 627 |
| AECFT Adelaide and Bedford water solution project in collaboration with the Amakhala Bedford Trust (created 95 temporary jobs, supported four local SMMEs and delivered clean water to 3 295 households) |
R1.1
million (2022: R1.2 million) |
| Construction and operation of Nceduluntu ECD centre in Adelaide (created 67 temporary jobs, supported five local SMMEs and gave more than 40 children access to quality early childhood education) | R747 489 (2022: R4.6 million) |
| Bursaries for 14 students (2022: 15) from Cookhouse, Bedford, Adelaide and Somerset East to acquire scarce skills at South African universities and TVET colleges |
R1.9 million (2022: R1.6 million) |
| Refurbishment of ablution facilities at Cookhouse Secondary School (created four jobs and benefited eight teachers and 246 learners) – a whole school development collaboration initiative with the five inland windfarms | R605 612 |
| Monthly stipends for six assistant teachers (2022: six) and two administrative clerks (2022: one) at Nojoli Primary School, Gilbert Xuza Primary School and William Oats High School (created seven temporary jobs benefiting more than 600 learners) | R305 200 (2022: R388 000) |
| Construction of 24Kw mini-solar farm and 35Kw battery backup to benefit nine farmworker houses and 24 residents at Penderry Farm | R449 650 |
| Establishment of school vegetable garden at four local schools, benefiting 1 961 learners | R686 329 |
| Purchasing wheelchairs for 13 beneficiaries residing in Somerset East and Cookhouse communities | R133 778 |
| Renovation of Somerset East sport field (created 31 temporary jobs) | R2.9 million |
| Laphumikwezi livestock farm benefiting 10 beneficiaries | R883 750 |
| Collaborated with the Chemical Industries Education & Training Authority, Amakhala Bedford and Cookhouse Trusts on soap and detergent manufacturing training benefiting 16 local SMMEs from Adelaide, Bedford, Cookhouse and Somerset East | R816 601 |
| Building future skills and inclusion of youth in the renewable energy sector in South Africa by training 10 youths in Global Wind Organisation Basic Safety and Technical training programme, in partnership with SP-Wind | R236 656.20 |
| Supporting agriculture, baking, sewing, waste recycling and general trading SMMEs (partnered with SAICA Enterprise Development) | R1.4
million (2022: R3.4 million) |
Case study:
Cennergi improves the safety of its communities
Cennergi, jointly with BTE Renewables, contributed R3 million to public road maintenance in the Blue Crane Route Municipality.
Poor public road conditions were impacting the safety of the local communities, farmers and the windfarm operational employees, resulting in several public road accidents in 2022. The improved conditions made daily travels safer for everyone. Cennergi also installed licence plate recognition cameras near Tsitsikamma, after the success of the cameras installed near Amakhala Emoyeni.
These cameras increase the footprint of existing cameras in the region, improving the safety and security of community members.
Case study:
TWFT addresses youth unemployment and child literacy in Clarkson
TWFT partnered with Masinyusane Development Organisation in 2023 to train and hire previously unemployed youth to teach children in Clarkson to read and write.
The programme is designed to ensure that every child hears 1 000 stories before the age of six, and every child, from the age of four, receives customised literacy sessions through a structured ECD curriculum.
Clarkson is the first community to participate in this programme. The programme has multiple benefits for the community: unemployed youth receive skills and work experience in ECD, a steady income and play an active role in shaping local children's future.
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