We believe that all people have inherent fundamental human rights regardless of their differences. We are therefore committed to respecting and protecting the human rights of all employees and stakeholders, in support of our purpose. We strive to be a responsible steward of natural assets and social capital to uplift host communities.
Implemented our redeveloped human rights policy, which serves as a guideline for our social accountability initiatives, and internally reaffirmed our commitment to the policy
Partnered with the DoE to initiate an ablution facilities project at schools in Lephalale
To champion fundamental human rights, including the basic freedoms of dignity, fairness, equality and respect, of our employees, communities and other stakeholders
The strategic resilience and governance function is conducting an internal due diligence analysis, to reinforce alignment to our Sustainable Growth and Impact strategy. The due diligence aims to:
The outcome of the due diligence analysis will be reported to the next quarterly executive committee meeting in the second quarter of 2024 for recommendation to the SERC.
Our human rights policy supports the objectives of our Sustainable Growth and Impact, Social Impact and DEI strategies.
Empower people to create impact
We promote human rights as set out in legislation, including the South African Constitution, and the following guiding principles:
Employees, communities and other stakeholders
To protect human rights and promote responsible business activities
DMRE, DoH, DoE
To comply with requirements and legislation to ensure our operations and practices do not infringe on human rights
Minerals Council SA and UNGC
To engage on recommended human rights practices and areas of focus for the industry, to align on universal principles on human rights
Universities
To promote research and activities that uplift communities and protect their natural resources, in line with our goal of being a responsible steward of natural assets
Future focus
We aim to complete our due diligence review in the second quarter of 2024. Following this, our focus will be on addressing the gaps identified and conducting training for employees.
We also plan to roll out the ablution facilities project in 2024, which is currently in the planning phase.
Recognising that our operations could cause adverse human rights impacts, we have a human rights policy in place and perform regular due diligence reviews to identify, prevent, mitigate and account for our response to human rights impacts. The due diligence process assesses actual and potential human rights impacts, integrates and acts upon findings, tracks responses and communicates how impacts are addressed.
Our human rights policy (updated in 2022) outlines our expectations of employees, suppliers, business partners and other parties directly linked to our operations, products and services.
Our human rights approach is supported by our commitment to:
Prevent discrimination, harassment and racism
Regularly review our human rights processes and policies
Provide a flow of information that promotes business sustainability through our fraud and ethics hotline
Encourage open and honest communication between employees and supervisor
We address grievances in terms of our formal procedure. Exxaro’s employment contracts advise employees of their rights to lodge a grievance, without fear of victimisation, if they are dissatisfied.
As we continue to embed human rights practices within our business and business conduct, we are committed to investing in and developing areas within our sphere of influence for the benefit of our stakeholders. The table below outlines how we address key human rights issues.
Governance and ethics
Our board manages impacts on our reputation in the following areas:
We focus on protecting human rights throughout the value chain. Accordingly, we prefer contractors and suppliers who share and demonstrate our values, as outlined in our supplier code of conduct.
We instil ethics awareness through our Mining with Morals theme, which is communicated throughout the group. Ethics awareness is an important proactive and strategic initiative to shape our ethical culture, reduce ethical risks and safeguard Exxaro's reputation.
Equal opportunities/non-discrimination and transformation
Our DEI strategy protects employees' human rights by preventing discrimination, harassment and racism. It aligns with the South African Constitution and other legislation, the National Gender Policy Framework and the UN Convention on the Elimination of all Forms of Discrimination against Women.
We train all leaders and employees on topics of gender equity/ identity, LGBTQIA+, racial equity, disability competence, inclusive culture and external inclusivity.
Human rights in the workplace
We will not use, cause, demand or impose forced or compulsory labour on any person.
In accordance with ILO conventions on the minimum age for admission to employment and the worst forms of exploitation of child labour, we will not employ people under the legal minimum age of 18. We support legitimate workplace apprenticeships, internships and similar programmes that comply with applicable laws and regulations.
We enforce reasonable working hours, leave and holidays guided by the ILO conventions to safeguard employees' physical and mental health.
When necessary, discipline is fair and in accordance with our transparent disciplinary and grievance mechanisms.
Security
When protest action affects our operations, we are guided by the Regulation of Gatherings Act, 1993 (Act 205 of 1993), our stakeholder management and human rights policies, and our security strategy, aligned with the Voluntary Principles on Security and Human Rights.
We also ensure ongoing training for employees on human rights principles:
Freedom of association and the right to collective bargaining
We respect every employee's right to join or form a labour union without fear of reprisal, intimidation or harassment. We are committed to establishing constructive dialogue with freely chosen representatives of legally recognised unions that represent our employees. Supporting the principle of collective bargaining, we are also committed to engaging in good faith with these representatives.
Safety and health in the work environment
We strive to maintain zero harm in our workplaces through stringent management protocols, programmes and systems.
Environmental management and conservation
Planning early for mine closure is critical to protect the future of the environment and society, and to uplift host communities. We therefore prioritise closure planning and mine rehabilitation before, during and after the operating LoM.
Our social impact framework addresses mine closure through our mineral succession planning programme. The programme assists black emerging farmers with access to resources to ensure they can commercialise their businesses and to create a positive legacy in the area in the form of secondary economy. The programme focuses on areas where Exxaro (previously Kumba and Iscor) previously operated mining businesses and addresses funding, access to markets, inputs, machinery and training.
We are committed to responsible mining, decarbonisation and climate change mitigation, as articulated in our Climate Change Response strategy (investor tab under integrated reports 2020).
Respect for all communities
We believe communities have the fundamental right of access to quality water, affordable electricity, and protection from noise, air pollution and hazardous materials.
As a responsible corporate citizen, we respect the cultural values of societies, including indigenous people and traditional authorities in our host communities with specific regard to selfsufficiency, sustainability, health, safety and the natural environment.
In the absence of specific resettlement guidelines for non‑mining‑related resettlements, to provide for involuntary resettlement as per the Minerals Council's Human Rights Framework, we are guided by the IFC's Performance Standard 5 and comply with the DMRE's mine community resettlement guidelines, effective 30 March 2022.
Cennergi ensures human rights considerations are adequately managed and addressed through human resources policies and a code of conduct and grievance procedure aligned with South African human rights legislation. Cennergi is also committed to the IFC's Performance Standard 2 on labour and working conditions, which requires companies to treat their workers fairly, provide safe and healthy working conditions, avoid using child or forced labour and identify related risks in their primary supply chain. Consistent with Exxaro, employees can report human rights violations to supervisors, line managers, the people and performance department or anonymously through Exxaro's fraud and ethics hotline.
The SERC oversees the consequences of the group's activities and output on its status as a responsible corporate citizen in the protection of human rights on behalf of the board. The RBR committee has risk and compliance oversight, while the remuneration committee focuses on fair and responsible remuneration within the group. The executive committee is responsible for implementing our human rights policy.
There were no human right grievances lodged against Exxaro in 2023
196 employees participated in DEI courses such as workplace harassment and diversity and inclusion during the year
191 fraud and ethics allegations were reported (164 to the fraud and ethics hotline) managed by internal audit
23% resulted in disciplinary inquiries
(2022: 213)
Exxaro is trending positively against the five global trends listed in the Ethics & Compliance Initiative's Global Business Ethics Survey Report® for 2023
Out of the 22 disciplinary hearings that were concluded, 19 ended with findings of guilt, while one resulted in a not-guilty verdict
(2022: 41)
Two employees brought Exxaro before the Council of Conciliation, Mediation and Arbitration. In one instance, the Commissioner decided in favour of Exxaro, and in the other instance, the matter was resolved through a mutual agreement
(2022: none)
We experienced delays in appointing a partner to conduct due diligence on our processes, however, due diligence is now underway, with completion anticipated in the second quarter of 2024.
We conducted an evaluation of Exxaro's business relationships with suppliers referenced in the state capture report and developed guidelines on how to deal with suppliers mentioned adversely in the media.
Case study:
Exxaro aims to restore the dignity of our local communities as part of our Social Impact strategy. In pursuit of this goal, we are partnering with the Limpopo DoE to build appropriate and adequate ablution facilities, aligned to standards prescribed by the DoE, at two schools in Lephalale – Lerekhureng Combined School and Mocheko Secondary School.
The sustainable and environmentally friendly ablution facilities we provide will improve the health and safety of learners, and protect their human rights and dignity. The project is currently in the planning phase and site visits have been conducted with the DoE. We anticipate the project to be completed by end 2024.
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