We unpack our approach and performance against our environmental commitments in this chapter, and outline how we pursue sustainable growth and impact through the following lenses:
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Further reading |
Unpacked in this chapter
Highlighted in this chapter and under performance against our KPIs
Engagements and collaboration in achieving our goals and initiatives summarised in this chapter, with stakeholder needs and concerns unpacked
Responsibly managing and mitigating the negative impacts of our activities on the environment is critical to enabling the success and long-term sustainability of our business, and ensuring we create a sustainable future for our employees, communities and the planet.
Our environmental policy incorporates:
Our Sustainable Growth and Impact strategy guides the evolution of our environmental policy as we transition to a low-carbon business by embedding climate change mitigation and adaptation through management standards and incident reporting to support our BUs.
Cennergi creates clean renewable energy solutions for state-owned entities, industrial and mining customers, and communities. Cennergi's environmental and social management system manages impacts in line with local standards and principles, the Equator Principles, the International Finance Corporation's (IFC) performance standards and the World Bank's guidelines, among other international requirements.
CASE STUDY:
Given our philosophy and history of prioritising sustainability and placing it at the core of what we do as a business, we participated in the COP28 climate change conference in Dubai (December 2023). Our contribution to the conference was on key issues such as the outcomes of the Global Stocktake, decarbonisation technologies in mining, scope 3 mitigation measures, nature-based solutions, ESG developments, climate policies, water security, linking efforts to address the climate and biodiversity crises, contribution to South Africa's just energy transition, strategic partnerships for climate mitigation and adaptation and social impact.
Exxaro and the Council for Geoscience also participated in a panel discussion on the MoU which was signed by the two organisations in December 2023 to collaborate on carbon capture, utilisation and storage initiatives. It is envisaged that this low-carbon technology can potentially play a critical role in not only reducing South Africa's carbon emissions, but Exxaro's scope 3 emissions to a certain extent.
As we plan for COP29, we realise that the next few years will be critical from a climate action point of view and as a business, we are prepared to play our role in responding to the impacts of climate change.
The RBR committee oversees our environmental management and impact on behalf of the board. The chief sustainable impact officer is responsible for implementing environmental strategies for the group, assisted by sustainability and BU managers.
Exxaro's wheel of excellence ensures our approach to environmental stewardship is consistent across the group. It effectively integrates new assets to align our BUs in implementation, compliance, monitoring and reporting processes. It also guides BUs in acquiring necessary competencies.
Our environmental commitments fall under the following areas, each supported by specific strategies and policies:
We intensified our focus on environmental areas that impact our environmental commitments and goal to be carbon neutral by 2050. We also intensified efforts to decarbonise our operations through implementing energy efficiency projects, implementing energy and water performance metrics across all functional areas and ensuring we close the loop on resource use.
Through our university chairs, we promote research and activities that advance sustainable utilisation of resources, the mitigation and adaptation of climate change effects, and other pertinent environmental issues.
Following the update of our environmental incident management standard in 2021 to include level 0 incidents (incidents with no impact to the receiving environment but those that pose a potential risk), we continue to monitor these incidents as well.
In 2023, Exxaro recorded 53 level 0 incidents, three level 1 incidents (2022: nine) and one level 2RA (intermediate impact and/or non-compliance) incident at Durnacol (mine in closure). We have not recorded any level 3RA (major impact and/or non-compliance) incidents over the past three financial years at our operating mines.
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Refer to the databook for details of our level 1 environmental incidents. |
Cennergi did not record any significant environmental incidents during the year.
Environmental complaints can be raised at environmental stakeholder engagements and/or through telephone or letters to the mine and as part of the complaints process at each operation. There is also a complaints book at the entrance of all mines to register complaints. These complaints are managed by environmental personnel with the support of head office specialists, and corrective actions are implemented and monitored. Exxaro is investigating an electronic system for the management of environmental complaints
In 2023, Exxaro received one new environmental complaint regarding a water pollution incident at Durnacol.
South Africa's National Assembly passed the Climate Change Bill (Bill), the first piece of legislation in the country for mitigating and addressing the effects of climate change. A critical aspect of the Bill includes allocating carbon budgets or allowances against which companies whose activities generate carbon emissions during a defined period will be tracked. The Bill also states that penalties for companies that exceed their carbon budgets should be determined, with National Treasury proposing a higher carbon tax rate of R640/tCO2e for emissions above the allowance.
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