Monitoring, measuring and reporting on our performance ensures we improve our disclosure every year. We aim to do this accurately, transparently and consistently by:
Further reading
We benchmark our ESG performance against our peers who exhibit the global best practice expected by responsible investors. Global ratings agencies assess our ESG performance using publicly available information (annual reports, websites and media) in line with various criteria requirements.
As a result of our ESG approach, we proudly continue to benchmark above our peers in global ESG best practice.
The Bloomberg GEI encourages organisations to improve their gender-related policies and practices through fostering greater transparency and accountability. The index includes public companies from various organisations, and tracks their performance and progress in gender equality and advancing women in the workplace.
MSCI ESG Ratings evaluate and benchmark companies' ESG performance across various industries, enabling investors to integrate ESG considerations into their decision making and identify sustainable investment opportunities.
AA rating in the ESG ratings
This rating, underpinned by our leading carbon initiatives and strong governance, improved from the A rating we received in 2022.
The TPI compares companies' expected future carbon emissions with local and international targets as part of the Paris Agreement. It is used as a benchmark to determine commitment to corporate climate action. A high TPI ranking demonstrates that a company is strategically mitigating climate change and its effects.
4/4 rating
We achieved the same rate compared to 2022, demonstrating our commitment to manage GHG emissions, which shows stakeholders that Exxaro is well positioned to benefit from opportunities presented by the low-carbon transition.
Institutional Shareholder Services empowers investors and companies to build long-term sustainable growth by providing high-quality data, analytics and insight.
Exxaro was ranked at C with a very high transparency level and was counted among the industry leaders, which demonstrates our commitment to good corporate governance.
Areas for improvement include publication and disclosure of how we mitigate our social and environmental risks, including business ethics, biodiversity and safety.
Moody's assesses a company's ESG performance to provide insights to investors and stakeholders regarding how effectively organisations manage their non-financial risks and opportunities.
60/100 overall ESG score
This is an increase of 15 points from our 2020 and 2021 scores – the governance category led the way with a score of 72/100.
The Sustainalytics ESG rating measures exposure to industry‑specific material risks (including company–specific factors such as the business model) and the company’s management of those risks. Exxaro’s exposure was rated high and management was rated strong, which indicates the robustness of our ESG programmes, practices and policies.
34.4 ESG risk rating
Our rating reflects our commitment to robust ESG reporting, which follows recognised best practices.
We continue assessing feedback from other ratings agencies to identify common assessment areas and opportunities for improvement.
FTSE Russell's ESG scores and data model allows investors to understand a company’s exposure to, and management of, ESG issues in multiple dimensions. The index series measures our ESG risks and impact performance in terms of themes relevant to our mining context.
3.9/5 overall ESG score
Over the past five years, we have consistently achieved good scores, demonstrating our commitment to improving our performance. Despite the slight decrease this year, we remain ranked in the top quartile of global performers in the basic resources supersector.
The ESG report discloses performance against the following relevant themes:
Pollution and natural resources
Climate change
Water use
Biodiversity
Labour standards
Health and safety
Human rights and community
Risk management
Corporate governance
Anti-corruption
Risk exposure classification
Medium
High
FTSE Russell ESG Index – Exxaro’s historical performance (score out of 5)
| Year end 2023 | Exxaro | Global coal sub-sector |
| Environment | 4.0 | 2.1 |
|---|---|---|
| Social | 3.3 | 2.1 |
| Governance | 4.6 | 3.3 |
| Source: FTSE Russell Corporate Performance Results. |
We continuously aim to improve our disclosure, reporting transparently and ensuring our performance information is accessible to a broad range of stakeholders. We regularly engage with various rating agencies to ensure we continuously enhance our reporting.
We remain committed to independent assessment of our environmental performance, and piloted our participation in CDP Forests, which rating we hope to receive in future as part of our nature-based solutions projects.
We manage our ESG KPIs as presented in the dashboard below. Performance is measured and monitored quarterly by Exxaro’s board and executive committee.
We ensure strategy management is integrated with:
The board and executive committee measure and manage Exxaro’s strategy and performance so that stakeholders can have a transparent and consolidated view of value creation and sustainability drivers.
Trend
Natural capital| KPI | Strategy | Target | 2023 | 2022 | Trend |
| Incidents | |||||
| Reportable environmental incidents (levels 2 and 3) | Become a catalyst for economic growth and environmental stewardship | 0 level 2s
0 level 3s |
1 level 2RA 0 level 3RA |
0 level 2s 0 level 3s |
 |
| Compliance | |||||
| Stoppage directives (includes section 54 in terms of MHSA*) | Empower people to create impact | 0 | 4RA | 7 |  |
| Stoppage directives (includes directives in terms of NWA, NEMA and MPRDA**) | Become a catalyst for economic growth and environmental stewardship | 0 | 0RA | 0 |  |
| Valid authorisations in place | |||||
| Current operations | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | 100% | |
| Projects | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | 100% | |
| Compliance to valid licences/authorisations in place*** | |||||
| Current operations | Become a catalyst for economic growth and environmental stewardship | 100% | 97% | 100% | |
| Projects | Become a catalyst for economic growth and environmental stewardship | 100% | 100% | 100% | |
| Environmental liability provisions in place*** | |||||
| Commercial and captive operations | Become a catalyst for economic growth and environmental stewardship | Between 80%
and
80% to 100% and 100% |
Between 50% and 80% |
Between 50% and 80% |
|
| Environmental management | |||||
| Carbon intensity (scope 1 tCO2e/total kilotonnes mined (kTTM)) | Be carbon neutral by 2050 | Actual for
previous year less 5% |
> 5% reduction | 0.5% increase | |
| Carbon intensity (scope 2 tCO2e/kTTM) | Be carbon neutral by 2050 | Actual for
previous year less 5% |
> 5% reduction | 0.8% increase | |
| Water intensity (kL/tonne RoM) | Become a catalyst for economic growth and environmental stewardship | 0.15 to 0.18 | 0.10RA | 0.15 | |
| Physical rehabilitation (actual versus budget) | Become a catalyst for economic growth and environmental stewardship | 0%
deviation
from budget |
Between 0% to 25% deviation from budget |
Between 25% and 50% deviation from budget |
|
Human capital
| KPI | Strategy | Target | 2023 | 2022 | Trend |
| Safety | |||||
| Number of fatalities | Empower people to create impact | 0 | 0RA | 1 | |
| LTIFR# | Empower people to create impact | 0.05 | 0.07RA | 0.05 | |
| LTIs# | Empower people to create impact | 7 | 11RA | 7 | |
| Health | |||||
| OHIFR# reported | Empower people to create impact | 0.18 | 0.15RA | 0.16 | |
| People who received HIV/Aids awareness training | Empower people to create impact | 90% to 100% | 92.92% | 116.5% | |
| Employees who received awareness training and voluntarily tested for HIV/Aids | Empower people to create impact | 68% and above | 69% | 70.6% | |
| HIV/Aids prevalence rate compared to country prevalence rate | Empower people to create impact | Less than country prevalence rate | 1% to 10% less than the country prevalence rate | 1% to 10% less the country prevalence rate | |
| Skills | |||||
| Skills provision (percentage of appointment of employees within) | Empower people to create impact | 60% | 73.66%RA | 64% | |
| Scarcity skills retention (percentage turnover) | Empower people to create impact | 5% | 4.5%RA | 4.4% | |
| Security | |||||
| Fraud and corruption/asset destruction | Empower people to create impact | 0% | 0% | 0% | |
| # | Lost-time injury frequency rate (LTIFR), lost-time injuries (LTIs) and occupational health incident frequency rate (OHIFR). |
Manufactured capital
Intellectual capital
| KPI | Strategy | Target | 2023 | 2022 | Trend |
| Operational performance | |||||
| System availability (Core P1 and enterprise resource planning solutions) | Make our minerals and energy businesses thrive | 97% | 98.66% | 97.49% | |
| Information management projects (cost overrun) | Make our minerals and energy businesses thrive | 0% over budget | 73% under spent |
5% under budget | |
| Information management projects (time overrun) | Make our minerals and energy businesses thrive | 0% behind schedule | 22% behind schedule | 0% behind schedule | |
Financial capital
| KPI | Strategy | Target | 2023 | 2022 | Trend |
| EBITDA margin (managed operations) (%) | Make our minerals and energy businesses thrive | 29 | 35 | 41 | |
|---|---|---|---|---|---|
| ROCE# (%) | Make our minerals and energy businesses thrive | 20 | 20 | 35 | |
| Solvency ratio (times) | Make our minerals and energy businesses thrive | 2 to 3 | 3.5 | 3.3 | |
| # | Return on capital employed (ROCE). |
Social and relationship capital
| KPI | Strategy | Target | 2023 | 2022 | Trend |
| Employment equity | |||||
| Black ownership at group level | Become a catalyst for economic growth and environmental stewardship | 30% | 47.10% | 47.10% | |
| People with disability representation | Empower people to create impact | 2% | 1.69% | 1.61% | |
| Human resources development spend as % of payroll – Mining Charter III | Empower people to create impact | 5% | 5.04% | 5.53% | |
| HDP† representation – top management | Empower people to create impact | 50% | 50.00% | 66.66% | |
| HDP representation – senior management | Empower people to create impact | 60% | 73.33% | 68.91% | |
| HDP representation – middle management | Empower people to create impact | 60% | 83.44% | 80.92% | |
| HDP representation – junior management | Empower people to create impact | 70% | 82.31% | 81.16% | |
| Women representation in top management bands | Empower people to create impact | 20% | 25.00% | 33.33% | |
| Women representation in senior management bands | Empower people to create impact | 25% | 30.67% | 22.97% | |
| Women representation in middle management bands | Empower people to create impact | 25% | 45.31% | 40.62% | |
| Women representation in junior management bands | Empower people to create impact | 30% | 34.03% | 32.41% | |
| Business sustainability | |||||
| B-BBEE level | Empower people to create impact | Level 1 | Level 2 | Level 3 | |
| Enterprise development (percentage of NPAT†) | Empower people to create impact | 1% | 0.74% | 0.49% | |
| Supplier development (% of NPAT) | Empower people to create impact | 2% | 0.88% | 0.83% | |
| Socio-economic development (percentage of NPAT) | Empower people to create impact | 1% | 0.58% | 0.93% | |
| Skills development expenditure on
learning programmes in the learning programme matrix for black people as a percentage of leviable amount – B-BBEE |
Empower people to create impact | 3.1% | 3.16% | 3.15% | |
| SLPs†* | |||||
| Project delivery measure – local economic development projects per SLP time variance from plan | Become a catalyst for economic growth and environmental stewardship | 0% behind schedule | 18% behind schedule | 40% behind schedule | |
| Cost variance from plan | Become a catalyst for economic growth and environmental stewardship | 0% over budget | 44% under budget | 16% over budget | |
| ^ | The trend-based indicators are in accordance with Exxaro’s internal sustainability framework. |
| † | Historically disadvantaged person (HDP), net profit after tax (NPAT) and social and labour plans (SLPs). |
* Refer to Co-creating and preserving value with communities for SLP performance.
ESG performance is becoming more prominent as various stakeholders are increasingly looking at ESG factors to inform investment and lending decisions – measuring and assessing Exxaro’s exposure to ESG risks, and our mitigation and management efforts relative to our peers.
We aim to continuously improve the transparency and accuracy of our reporting. We received several accolades this year in recognition of our efforts:
We recognise our responsibility to participate in global movements towards transitioning to a low-carbon world and supporting prosperous and safe communities through broader environmental stewardship and empowering people to create impact.
Read the case study about Exxaro's contribution to COP28.
Report Index
IR