We are gaining momentum as we transition to our new strategy. We have set clear and ambitious objectives to progressively incorporate our Sustainable Growth and Impact strategy into our operations.
To measure and manage our performance over time, we have identified specific KPIs that were selected by considering our past KPIs, representing the various aspects of value creation we affect and our future objectives. The resulting indicators are refined and designed to monitor our momentum towards our strategy while catalysing discussion and analysis within our organisation. Furthermore, they ensure we address our previous ESG commitments and enable the achievement of these ambitious goals.
Our KPIs are grouped per capital and incorporated in the tables below in relation to how their continued availability, quality and affordability impact specific strategic objectives.
| Key | Description |
| REM-S | Linked to remuneration (STI) |
| REM-L | Linked to remuneration (long-term incentive) |
| Trend | Description |
 |
Deteriorated |
 |
Improved |
 |
Unchanged |
Why it matters
The shift towards a low-carbon economy is imperative due to the growing demands for climate change mitigation. As a business, it is essential to approach this transition with a balanced sense of urgency to stay ahead of the curve while ensuring that the shift is sustainable and generates a positive societal impact.
Performance overview
Continued availability, quality and affordability of capitals driving our strategy
Exxaro's strategy is firmly rooted in managing our capitals to support sustainability and growth. By optimising our coal assets and advancing into other minerals and energy, we are securing financial capital and investing in our future capabilities. Our performance indicators – EBITDA from new minerals, EBITDA contribution from Cennergi and installed energy generation capacity – are milestones towards our 2026 and 2050 targets. These targets reflect our commitment to transitioning at speed and scale while securing the availability of financial capital now and in the future to support sustainable value creation in a dynamic energy market.
Measuring related capital inputs
| Target | Performance | ||||||
Performance indicator |
2026 (short term) |
2030 (medium term) |
2023 | 2022 | 2021 | Trend | |
 Financial capital |
EBITDA contribution from new minerals (%)REM-S | 30 | 50 | 0 | 0 | N/A | |
|---|---|---|---|---|---|---|---|
| Installed generation capacity (MW net) | 780 | 1 600 | 229 | 229 | 229 | |
|
Related trade-offs
Balancing the adverse environmental impact of coal with the need to support South Africa's socio-economic development
In our pursuit to transition to a low-carbon model rapidly and responsibly, we recognise the current socio-economic reliance on coal in South Africa. While we accelerate our transition, we remain committed to supporting the nation's development, ensuring a responsible shift that considers both the environmental impacts and the immediate energy needs of the society. This alignment is crucial as we strive to create a positive social impact and lead by example in the just energy transition.
Looking
forward
We aim to transition at speed and scale but not at all costs. Our investments in minerals and energy will be governed by our prudent capital allocation framework and rigorous investment criteria, positioning our portfolio within our desired risk-adjusted return levels.
Why it matters
Intensifying our focus on core delivery areas, specifically minerals and energy, is crucial for future growth and sustainability. By expanding our presence in these sectors, we can capitalise on the burgeoning opportunities within the green economy. Simultaneously, strategically divesting from assets not meeting our robust criteria will streamline our portfolio and free up resources to be reinvested into new minerals.
Performance overview
Continued availability, quality and affordability of capitals driving our strategy
The sustained success of our minerals and energy segments is deeply intertwined with the continuous availability of manufactured and financial capital. By meeting our targets for coal exports, we exhibit our competence in managing our physical assets efficiently and effectively. Financially, our strong EBITDA margin, ROCE and solvency ratio are testaments to our sound strategic decision making and operational excellence.
Measuring related capital inputs
| Target | Performance | ||||||
Performance indicator |
2026 (short term) |
2030 (medium term) |
2023 | 2022 | 2021 | Trend | |
 Manufactured capital |
Coal product (Mt) | 45 | 50 | 42.5 | 43.1 | 42.5 | |
|---|---|---|---|---|---|---|---|
| Financial capital |
EBITDA margin (managed operations) (%)REM-S | 29 | 29 | 35 | 41 | 33 |
|
| ROCE (%)REM-L | 20 | 20 | 35 | 45 | 36 |
|
|
| Solvency ratio (times) | 2 to 3 | 2 to 3 | 3.5 | 3.3 | 3.0 |
|
|
Related trade-offs
Balancing capital allocation with our growth areas
Our approach to capital allocation is agile and an integral component of our strategy creation and delivery. Our capital allocation process is supported by governance that supports disciplined and unbiased decision making aligned with our portfolio ambition.
Our strategic objectives and their metrics (which include stringent financial return metrics for each growth area) will continue to guide capital allocation so that we objectively assess strategic trade-offs related to capital allocation.
Looking
forward
We aim to optimise value creation from our coal business while diversifying into a resilient new minerals business and growing our energy business to achieve our goal to become carbon neutral by 2050.
Why it matters
The true strength of our organisation lies in the collective capabilities and dedication of our people and partners. By empowering them with the necessary skills and fostering a culture of innovation and accountability, we position ourselves to make significant strides towards our goals. This empowerment is about reaching organisational objectives and amplifying our collective contribution to society and the economy, ensuring our work resonates with purpose and leads to lasting positive change.
Performance overview
Continued availability, quality and affordability of capitals driving our strategy
We understand that our people are essential to our ongoing ability to innovate, operate efficiently, and respond to the dynamic needs of the market and society. By investing in our human capital, we are investing in a sustainable future and fostering an environment where our organisation and employees can thrive and generate enduring value. Our dedication extends to nurturing social and relationship capital, critical to our licence to operate, reflected, in part, by our B-BBEE contribution level. Achieving targets like zero fatalities, low LTIFR and OHIFR rates underscores our commitment to wellbeing and development. These efforts ensure we maintain a skilled, motivated workforce and robust community relations, essential for driving sustainable value creation aligned with our strategic mission.
Measuring related capital inputs
| Target | Performance | ||||||
Performance indicator |
2026 (short term) |
2030 (medium term) |
2023 | 2022 | 2021 | Trend | |
 Human capital |
FatalitiesREM-S | 0 | 0 | 0 | 1 | 0 | |
|---|---|---|---|---|---|---|---|
|
LTIFRREM-S |
0.02 | 0.01 | 0.07 | 0.05 | 0.08 | |
|
| OHIFR | 0.06 | 0.02 | 0.15 | 0.16 | 0.16 | |
|
 Social and relationship capital |
B-BBEE contribution level | 1 | 1 | 2 | 3 | 2 | |
Related trade-offs
Balancing operational focus and the need for diversification
As a business transitioning towards a carbon-neutral portfolio by 2050, we recognise that portfolio diversification is essential in balancing risk and reward across multiple time horizons.
Our operating coal business remains a crucial source of capital to support this transition, and managing this business optimally while motivating our workforce is essential in achieving our ambition. We enable this through balanced performance scorecards at all levels of the business, clear alignment of strategic goals, and candid conversations led by our CEO and executive team.
Looking
forward
We will continuously develop our people, processes and platforms to ensure we build on our learning culture, enhance our organisational effectiveness and achieve our strategic objectives.
Why it matters
Achieving carbon neutrality by 2050 is a critical target that reflects our commitment to environmental stewardship and sustainable development. By actively reducing our carbon footprint, we are contributing to the global effort to mitigate the impacts of climate change. This ambitious goal will be realised through the strategic decarbonisation of our portfolio and by integrating social impact initiatives that promote environmental responsibility. The drive towards carbon neutrality prepares us for a future of stricter environmental regulations and positions us as a leader in sustainable practices. Our dedication to this cause demonstrates to stakeholders, including customers, investors, and employees, that our operations align with broader societal values of preservation and responsibility towards our planet.
Performance overview
Continued availability, quality and affordability of capitals driving our strategy
Our strategic reliance on natural capital underpins our ability to provide critical resources for a low-carbon world. However, the volatility of climate patterns threatens the quality, affordability and accessibility of the resources we rely on and could jeopardise our operational continuity and the communities we serve. Recognising this, our commitment to carbon neutrality by 2050 is underpinned by KPIs tracking carbon intensity across scopes 1 and 2 and reducing our energy intensity. These indicators do not just measure but actively guide our efforts towards portfolio decarbonisation and underscore our determination to diminish our carbon footprint.
Measuring related capital inputs
| Target | Performance | ||||||
Performance indicator |
2026 (short term) |
2030 (medium term) |
2023 | 2022 | 2021 | Trend | |
 Natural capital |
Absolute emissions (ktCO2e) | 40% reduction in scope 1 and 2 emissions (579ktCO2e) |
Carbon neutrality | 953 (2% reduction) | 971 | 994 | |
|---|---|---|---|---|---|---|---|
| Energy intensity (GJ/kt)REM-S | 30 | 30 | 28 | 30 | 29 | |
|
Related trade-offs
Balancing our growth ambitions with our carbon-neutral targets while appreciating that absolute carbon (total emissions) might increase with acquisitions
As we aim for carbon neutrality by 2050, our growth strategy includes acquisitions that may temporarily raise our carbon footprint. However, each potential acquisition is assessed in relation to our broader decarbonisation goals. This approach is central to our strategy, ensuring that growth does not compromise our commitment to becoming carbon neutral.
Key measures related to carbon intensity and emissions are included in our strategic performance metrics and will be a crucial tool for evaluating and balancing trade-offs pertaining to growth. A key role of our decarbonisation roadmap is to give us a better understanding of future scenarios and projections for our business. This will provide us with further clarity on potential shortfalls and opportunities.
Looking
forward
Our key focus in the short term will be to reduce our scope 1, 2 and 3 emissions and carbon tax liability through additional energy efficiency projects, implementation of nature-based solutions, energy and other initiatives. We will also leverage and operationalise strategic partnerships to achieve our decarbonisation objectives.
Why it matters
Our role in fostering economic growth and championing environmental conservation is pivotal. We can generate a positive ripple effect beyond our operational lifespan through our involvement in the minerals and energy sectors. By initiating and nurturing community projects and businesses, we serve as a driving force for long-term, self-sustaining development that benefits local economies and ecosystems alike. These impact programmes are designed to deliver immediate benefits and lay the groundwork for ongoing prosperity that does not solely rely on our presence. This approach underscores our vision of leaving a legacy of empowerment and ecological balance, ensuring that the progress and wellbeing of communities endure alongside environmental integrity.
Performance overview
Continued availability, quality and affordability of capitals driving our strategy
Our strategy for catalysing economic growth and upholding environmental stewardship revolves around the prudent utilisation of our natural capital and fortifying our social and relationship capital. Through the reduction of environmental incidents, ensuring responsible water usage and engaging with external feedback, we are not only preserving natural resources but also ensuring their ongoing availability and quality. At the same time, we are dedicated to catalysing economic growth by enhancing agricultural productivity and scaling up support for SMMEs, which invigorates local economies and fosters community resilience. Our ECD programme underpins our investment in early education, vital for nurturing the next generation. These integrated actions underscore our commitment to maintaining robust social ties, investing in the workforce of the future and driving sustainable development, all of which secure our social licence to operate and contribute to long-term value creation.
Measuring related capital inputs
| Target | Performance | ||||||
Performance indicator |
2026 (short term) |
2030 (medium term) |
2023 | 2022 | 2021 | Trend | |
|
Social and relationship capital |
Crop yield to market (tonnes) | 13 000 | 15 000 | 10 011 | 5 600 | 5 651 |
|
|---|---|---|---|---|---|---|---|
| Financially sustainable SMMEs supported | 207 | 295 | 118 | 105 | 79 |
|
|
| ECD school readiness (%) | 90% | 90% | n/a* | n/a* | n/a* | ||
| Natural capital |
Reportable
environmental incidents (levels 2 and 3) |
0 level
2s 0 level 3s |
0 level 2s 0 level 3s |
1 level
2s 0 level 3s |
0 level 2s 0 level 3s |
6 level 2s 0 level 3s |
|
| Water intensity (kL/tonne RoM)REM-S | 0.180 | 0.180 | 0.105 | 0.150 | 0.149 |
|
|
| FTSE Russel RatingREM-L | 4 | 4 | 3.9 | 4 | 3.7 |
|
|
| * | The ECD programme was launched in 2023, so there is no data for 2021 to 2023. |
Related trade-offs
Balancing short-term business performance against long-term ambition
Our scenario and risk modelling process highlights a potential global recession scenario and the implications this will have on our business in the short term. Reducing coal prices and increasing inflation and energy costs will result in lower margins unless stringent cost optimisation is undertaken.
In navigating these challenges, we must maintain our focus on short-term resilience while investing in long-term strategic research and development. This delicate balance supports our aim to catalyse economic growth and environmental stewardship, steering towards sustainable and scalable impact programmes that will last beyond our operations. Our portfolio approach towards resource allocation guides us as we manage this tension.
Looking
forward
We aim to integrate and embed ESG further within Exxaro and progress our industry-leading ESG performance towards delivering sustainable impact at scale. Skills development remains an important aspect to improve our B-BBEE performance. ECD in our communities will be a new focus area to ensure improved school readiness of young children.
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