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Exxaro Resources Limited
Environmental, social and
governance report for the year ended
31 December 2023

Our social commitments, each supported by specific strategies and policies, are categorised into three key focus areas, summarised below.

Building momentum with people

Our overarching people strategy guides our employee engagement approach, supported by Exxaro's:

Exxaro's DEI journey is a testament of how we are building momentum for sustainable growth and impact with our people.

Before 2019
  • Youth pipeline
  • Inclusive culture
  • Racial and gender equity
  • Women in mining
2020
  • Launch of initiatives for people with disabilities and inclusive culture
  • Gender equity charter, skills audits and anti-GBV focus
  • Leadership capability building through the Exxaro Leadership Way
2021
  • Strategy integration
  • Fair pay
  • Leadership DEI capacity building
  • Integrating equity into DEI strategy
2022 and 2023 (short term)
  • Raise visibility of leadership commitment and accountability to DEI
  • Educate and capacitate leaders and employees about DEI
  • Activate the DEI baseline survey
  • Revision of policies and processes

Our future focus

2024 and 2025 (medium term)
  • Enable DEI governance structures
  • Implement measures to close the wage gap
  • Educate and capacitate leaders and employees to effectively deal with key diversity issues
  • Enable DEI throughout the employee lifecycle
  • Foster strategic DEI partnerships – continuous learning and best practice
2026 and beyond
  • Power possibilities by being a diverse and inclusive South African company with employees believing “I am valued and feel included at Exxaro"

Exxaro has achieved several milestones since our refocused DEI journey began:

Achieved persons with disabilities targets at certain BUs within the minerals business
Launched an industry-leading anti-GBV campaign and partnerships
Doubled our HDP profile at senior management level in five years
Adopted gender equality and anti-racism charters
Developed and reviewed policies and charters in line with the DEI strategic focus
Initiated DEI capability building and awareness
Recorded an overall increase in representation of women at all occupational levels, from 1 546 in 2019 to 2 122 in 2023. In the past six years, the representation of black women in senior and middle management has increased by over 75%

Co-creating and preserving value with communities

The Social Impact strategy fits into the social element of our ESG imperative while our implementation approach incorporates environmental and governance elements. This ensures sustainability, especially in relation to just transition considerations.

The strategy is a proactive response to mitigate the systemic social challenges in our communities through a long-term perspective. When viewed through the lens of the SDGs, this will have a lasting positive impact on communities and reduce poverty by combining ultidimensional approaches that address education, economic wellbeing and access to land for economic act. The strategy will also allow us to influence other areas of wellbeing without additional investment.

The strategy enables us to deliver impact at scale through the following key principles:

  • A market-based approach that integrates social, environmental
    and economic outcomes
  • Long-term planning, aligned to the life of operations and incorporating post-mining livelihoods
  • Design for larger projects that will enable multiplier effects
  • Optimising existing resources and capabilities and recognising the power of partnerships

We developed our Social Impact strategy around three pillars: education (ECD and whole school development), land use management (mineral succession planning to find alternative economic uses of the land beyond mining) and SMME development (promoting local conomic development through local procurement and ESD initiatives). We measure our success in these areas through increased literacy and numeracy, development of agricultural enterprises and food production, and job retention/creation and increased turnover.

Respecting and upholding human rights

We are committed to promoting human rights and preventing adverse human rights impacts. Our human rights policy and due diligence reviews ensure we identify, prevent, mitigate and account for our response to human rights impacts.

We address human rights in the following areas:

  • Governance and ethics
  • Equal opportunities/non-discrimination and transformation
  • Human rights in the workplace
  • Security
  • Freedom of association and the right to collective bargaining
  • Safety and health in the work environment
  • Environmental management and conservation
  • Respect for all communities

Accountability and responsibility

The SERC oversees people’s health, safety, engagement and development. Our chief people and performance officer, supported by various
management departments, is responsible for developing and implementing employee-related strategies.

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BUSINESS OVERVIEW
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Navigating this report
Building momentum and resilience for sustainable growth and impact
About this report
Who we are

ESG IN CONTEXT
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Our approach to ESG
Transitioning into a low-carbon business
Delivering measurable results and impact
Stakeholder-inclusive approach

ENVIRONMENT
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Environment
Climate change adaptation and resilience
Air quality management
Energy efficiency
Water security
Biodiversity protection
Mine closure and rehabilitation
Waste management

SOCIAL
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Social
Building momentum with people
Prioritising safety
Integrated health and wellness
Engaged employees
Talent management
Co-creating and preserving value with communities
Enterprise and supplier development
Supply chain sustainability
Respecting and upholding human rights

GOVERNANCE
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Governance
Board key matters in focus
Ethical culture
Performance and value creation
Adequate and effective control
Trust, good reputation and legitimacy
Our board of directors
Executive leadership
Audit committee report
Investment committee report
Logistics committee report
Nomination committee report
Remuneration committee report
Risk and business resilience committee report
Social, ethics and responsibility committee report
Remuneration report

SUPPLEMENTARY INFORMATION
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Assurance report
Appendix A: Criteria
Glossary
Administration