Materiality considerations serve as a crucial guide for our reporting practices. The matters we deem material are those that significantly influence our ability to create and sustain value, not only for our organisation but also for our stakeholders and the natural environment.
We annually assess our material matters. Since 2021, we have followed a detailed double materiality determination process to enable us to identify our impact materiality (our impact on society, communities and the environment) and our financial materiality (matters that impact our ability to generate revenue and preserve shareholder value over time). The process we follow includes:
Our approach reflects the combined guidance of the Integrated Reporting Framework and Global Reporting Initiative, and results in matters that are prioritised and grouped into themes to inform our integrated and ESG report content. The detailed information provided in this report focuses on issues that have a greater impact on Exxaro's ability to create value over time. Matters that have a higher impact on society, communities and the environment are discussed in detail in our ESG report. The heat map below, along with the material theme discussions, depicts the relative disclosure levels across this report and our ESG report.
The 2023 review identified 34 material matters, which were grouped into seven overarching themes. Recognising that materiality is dynamic in nature, the process is conducted annually, allowing us to regularly and timeously reflect on matters that may evolve from being material from an impact perspective to being financially material.
A1
Country risk: Failing infrastructure, institutions, and service delivery in South Africa
A2
Supporting a just transition to a low‑carbon economy#
A3
Commodity price risk
A4
Macro-environment
A5
Geopolitical context
C1
Social licence to operate (including community relations, collaboration and engagement)
A2
Supporting a just transition to a low-carbon economy#
C2
Ensuring human rights are respected and upheld^
C3
Social acceptance and community unrest
C4
Job and business creation
C5
Value sharing
C6
Resettlement and land use
B1
Financial performance and resilience
B2
Capital allocation
B3
Supply chain and logistical impediments
B4
Cyber risk
B5
Innovation and digitalisation
P1
Health, safety and wellness
P2
Labour relations
P3
Workforce: culture, capability, diversity, inclusion, attraction and retention of key skills and innovation^
G1
Transparency, ethics and integrity
G2
Risk management
G3
Embedding ESG in response to increased regulation and for sustainability
G4
Legal, regulatory and compliance excellence
E1
Managing our pollution
E2
Environmental incidents*
E3
Carbon emissions reduction
E4
Water stewardship
E5
Waste management
E6
Impact of climate change^
E7
Closure planning and rehabilitation management
E8
Biodiversity management
S1
Diversify into critical minerals and energy
S2
Build a leading global energy solutions business
S3
Coal portfolio optimisation
| * | New matter or theme. |
| # | Dual matter (across two themes). |
| ^ | Matter renamed, expanded or refined. |
Adapting to a changing context
The operating context is changing rapidly. Social, political and economic issues all impact our ability to create value. We operate in a long-term asset class with significant infrastructure investment. To remain competitive, we must respond to the current context and anticipate the future.
IR
ESG
Detailed disclosure
Summarised disclosure
Building sustainable communities
Our business activities impact our stakeholders, and they, in turn, respond to these impacts. Our social licence to operate depends on how we look after our communities and the natural world around us, and our adherence to legislation.
IR
ESG
Detailed disclosure
Summarised disclosure
Driving business resilience
Underpinning our strategic objectives is the drive to enhance our business resilience through safe production, delivering financial results, effective capital allocation, compliance excellence, entrenching innovation and capitalising on digitalisation.
IR
ESG
Building resilience through governance, finance director’s overview and business resilience
Detailed disclosure
Summarised disclosure
Helping our people thrive
Exxaro’s employees are the enablers of our performance. To deliver on our strategic goals requires a safe working environment and a culture that supports adaptability and innovation, while leveraging the strength of diversity, equity and inclusion (DEI).
IR
ESG
Detailed disclosure
Summarised disclosure
Executing our strategy
Climate change is not a refutable occurrence. We are committed to the Paris Agreement and have established a strategy and business objectives to respond to the short and long-term risks and opportunities presented by climate change.
IR
ESG
Detailed disclosure
Summarised disclosure
Principled governance
We conduct ourselves so as to strengthen our business reputation as a good corporate citizen and bolster our resilience in a changing environment.
IR
ESG
Detailed disclosure
Summarised disclosure
Responsible environmental stewardship
We acknowledge the impact of mining in our ecosystem. We must ensure we are responsible stewards of natural resources upon which our operations and communities rely to ensure a sustainable future for our employees, communities and the planet.
IR
ESG
Detailed disclosure
Summarised disclosure
Report Index
IR
