Exxaro Resources Limited – Environmental, social and governance report 2024 | Maintaining sound employee relations
Exxaro Resources Limited
Environmental, social and governance report for the year ended 31 December 2024 

Maintaining sound employee relations

Strong labour relations founded on open communication, mutual respect and proactive engagement with our people are key to maintaining a stable and motivated workforce. We value employee voices, advance workplace equity and achieve transformation objectives by aligning our efforts with our DEI and employee relations strategies.

Showcasing our zero tolerance stance on gender-based violence and femicide (GBVF) in action

Exxaro employees took a powerful stand against GBVF during the 16 Days of Activism campaign, which runs annually from 25 November to 10 December. This global initiative calls for collective action to combat GBVF and create safer communities for all.

At Grootegeluk, the women in mining committee led a peaceful march on 25 November, reinforcing Exxaro's zero tolerance stance on GBVF. The event served as a platform to raise awareness, encourage dialogue and mobilise support.

Significantly, members of the newly formed Grootegeluk Ibandla Men's Forum participated, demonstrating that ending GBVF is a shared responsibility that requires action from all genders.

Exxaro is committed to fostering a safe, inclusive workplace where employees are encouraged to speak out, challenge harmful norms and advocate for change. Through initiatives like this, we reinforce our commitment to the message: #NotInExxaro'sName.

Our employee management approach at a glance

The organisational culture we drive enables us to deliver on our business strategy and advance our decarbonisation goals without leaving employees and communities behind. We maintain our employee value proposition as an employer of choice through:

Accountability and responsibility

The SERC oversees employee engagement. The people and performance team support managers in identifying and implementing engagement initiatives. The CEO and the chief people and performance officer monitor DEI for the board.

Culture is a leadership responsibility from executive level to employees. BU managers and teams drive culture at operations.

Regulatory compliance

The South African Labour Relations Act, the Employment Equity Act (EEA), the BCEA and the MHSA, among others, set out specific requirements for employment in the mining industry. We actively comply with B-BBEE requirements.

Beyond compliance

As a signatory of the UNGC, Exxaro actively promotes DEI to achieve meaningful transformation across the business.

We support women in mining and contribute to the Minerals Council's data portal by sharing performance data and employment equity progress.

CENNERGI

Cennergi's employment equity committee oversees the implementation of the employment equity plan while guiding and monitoring transformation and skills development. The committee reviews recruitment processes, addresses deviations in equity performance and ensures the availability of technical skills to meet transformation goals. The government's independent power producer office monitors Cennergi's equity-category employment under the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), including opportunities secured for South African citizens and local communities.

Our people strategy serves as a catalyst for achieving the five strategic objectives of our Sustainable Growth and Impact strategy. Built on four pillars, the refreshed people strategy reflects our commitment to building a strong, diverse culture, developing capabilities, empowering people and delivering performance in alignment with our purpose to power better lives in Africa and beyond.

Our people strategy informs our approach to our overall employee experience by embedding our values and driving a culture of trust and collaboration. Established engagement structures ensure regular communication on key organisational topics, including health, wellness, safety, operational changes and financial performance. These channels provide insights that inform process improvements and workplace enhancements, aligning with employee and organisational needs.

Our performance achievement system, policy and approach further enhance performance principles and delivery.

CENNERGI

Cennergi implements its human resources framework through policies and procedures that align with Exxaro's standards. In instances where specific guidelines are absent, Exxaro's established policies and procedures serve as the benchmark.

A CULTURE FOR A DIVERSIFIED TOMORROW

Cultivating a culture of inclusion and innovation for a diversified Exxaro with new traditions and unprecedented success

UNEARTHING POTENTIAL, EMPOWERING XXCELLENCE

Prospecting potential, energising and investing in our people to deliver sustained Exxaro xxcellence

CONTINUOUS ACCESS TO TOP TALENT

Igniting our future by attracting, retaining and empowering top talent in shaping tomorrow's mining and energy legacy

WELLNESS AND SAFETY FIRST

Nurturing a workplace where our employee experience aligns with our intent of empowering employees, enhancing wellness, ensuring zero harm and powering better lives

FOUNDATIONAL ENABLER

Enabling operational excellence through optimised, fit-for‑purpose policies and processes

Building a diverse and inclusive workplace

Our DEI strategy, supported by our employee relations strategy and people with disabilities policy, ensures equal access to employment, training and skills development opportunities. These frameworks enable us to address systemic barriers and promote equity across our operations.

As part of our commitment to promoting a diverse, inclusive and equitable workplace, we have comprehensive policies and practices that promote DEI across the business, including:

  • Inclusive recruitment and hiring processes that actively seek out candidates from underrepresented groups, ensuring a diverse talent pool
  • Mentoring and leadership development programmes that empower employees from marginalised backgrounds to advance their career paths
  • Employee resource groups that allow employees to interact, share experiences and drive positive change, ensuring that diverse perspectives are represented in decision-making processes
  • Fair and transparent compensation processes, with regular audits to identify and address pay inequities based on gender, ethnicity or other characteristics
  • Comprehensive training programmes on unconscious bias and cultural competency to support an inclusive environment
  • Collaboration with local organisations, universities and non-profit groups to create opportunities for underrepresented community members

Our employee assistance programme (EAP) complements these efforts, providing wellness support for mental health, GBV and stigmatisation.

Our DEI strategy

reflects Exxaro's purpose, values, vision and strategic objectives

Guiding principles   Strategic priorities  
  • Respect for all
  • Trust as a foundation for collaboration
  • Processes free from prejudice
  • Zero tolerance for discrimination and harassment
  • Promotion of DEI throughout the organisation
 
  • Gender equity
  • LGBTQIA+ equity
  • Racial equity
  • Disability competence
  • An inclusive workplace culture
  • Promoting inclusivity in external interactions
 

The strategy empowers us to:

  • Create an environment built on trust and respect, free from prejudice, harassment and discrimination
  • Recognise DEI as a business imperative that enables employees to achieve organisational goals
  • Foster a workplace where employees thrive by addressing systemic barriers through changes in attitudes, behaviours and ways of working
  • Implement inclusive processes, procedures and practices that align with South African legislation
 

Our DEI approach is driven by courageous and accountable leadership and ongoing communication, enabling lasting change

Promoting racial equity

Exxaro's anti-racism charter outlines our zero tolerance approach to racism, emphasising education, solidarity and respect. The charter demonstrates our commitment to addressing racist behaviour, promoting understanding across racial lines and creating an inclusive environment where employees feel safe to speak out.

We review our policies and practices to eliminate systemic racism, ensuring equity and fairness within our business and host communities. The anti-racism charter builds on the principles of our code of conduct, and was co-created by Exxaro's DEI forum, as it is a key element of the racial equity pillar of our DEI strategy.

Awareness, education and training

Our DEI e-learning programme, launching in 2025, aims to:

  • Enhance awareness and understanding of DEI concepts across the business
  • Provide practical strategies and approaches for creating an inclusive work environment
  • Equip employees to recognise and address any biases that may exist in the workplace
  • Develop empathy, respect and appreciation for diverse perspectives
  • Empower every individual to contribute to our culture of inclusion and belonging

The programme offers an introduction to DEI, as well as courses in harassment and bullying, diversity of thought and generational differences. It is accessible to all employees and can be completed at their own pace and in their own time.

Embedding our culture

Exxaro's culture themes reflect our commitment to achieving strategic goals while staying true to our purpose and vision. These themes guide our internal and external stakeholder partnerships.

Responsible

Make Exxaro a positive place to be

Acting ethically, with accountability and against misconduct, while treating others with dignity, fosters a safe and healthy work environment.

Ownership

Success lies with each of us

Contributing to performance and innovation every day, building together, we can drive Exxaro to new heights.

Diverse

Our potential is in our differences

Harnessing our unique individual skills, opinions and contributions enables us to achieve exceptional outcomes.

Open and connected

Working together will bring out the best in us all

Achieving organisational excellence in an open and evolving ecosystem requires collaboration and teamwork.

Adaptable

We cannot move forward by standing still

Succeeding in the everchanging world around us requires agility as well as willingness to learn and improve.

Our workforce

    2024 2023 2022
    Number % of total
workforce
Number % of total
workforce
Number % of total
workforce
Exxaro              
Permanent employees   6 966 31 6 797 33 6 745 35
Contractors   15 300 69 13 868 67 12 497 64.9
Total employees   22 266   20 665   19 242  
Cennergi              
Permanent employees   31 6 35 20 21 20
Contractors   520 94 143 80 82 80
Total employees   551   178   103  
CENNERGI

Wind turbines are operated and maintained under contract by Nordex at Amakhala Emoyeni and by Vestas South Africa at Tsitsikamma. These contractors use sub-contractors for maintenance activities, employing 55 people (2023: 47) at Amakhala Emoyeni and 37 (2023: 29) at Tsitsikamma.

The 68MW LSP is being constructed under contract by Elsewedy and Edison, employing 428 people at year end.

How we performed

Share ownership

GreenShare, our ESOP, pays dividends to participants during their employment. It is open to employees not participating in a management share scheme. When dividends are declared, participants in service receive a cash payment equal to the dividends on 560 Exxaro shares minus dividend tax. Participants do not have capital appreciation rights.

In 2024, each GreenShare beneficiary received a cash payment of R10 653.44 (2023: R10 209.92).

    Number of
active
beneficiaries
Number
of units
Payment
before tax
(R)
Payment
after tax
(R)
June 2024   6 414 3 591 840 56 822 909 45 458 327
November 2024   6 468 3 622 080 28 831 757 23 065 405
Culture and engagement

Exxaro has been participating in the Top Employers Institute survey since 2021, demonstrating our commitment to aligning people practices with global best practice and identifying areas for growth.

We have consistently improved our performance year on year and once again received recognition as a top employer in 2025. We exceeded the certification threshold by 18.39%, achieving an overall score of 83.39%, a 7.47% improvement from our participation in 2023.

This certification highlights Exxaro's exceptional performance in the following key areas:

  • Business strategy 100%
  • DEI 97.2%
  • People strategy 96.67%
  • Sustainability 92.58%
  • Creating a positive work environment 92.38%
  • Listening strategies 90.34%

We conduct culture and engagement surveys across our corporate centre and BUs every second year to track progress on our DEI strategy, leadership effectiveness and the integration of key culture themes.

Insights from these surveys guide our focus areas, with identified challenges addressed in the year following each survey. The 2023 survey provided valuable insights into our strengths, including high ratings for vision and strategy, work environment and sexual orientation inclusion, as well as challenges related to creating a psychologically safe environment, addressing workplace harassment and enhancing employee skills development.

In response to recommendations stemming from the 2023 survey, feedback sessions were held with all BUs and department heads, incorporating honesty boxes to encourage open and candid input from employees. Based on this feedback, all BUs have developed targeted action plans.

Key initiatives across the group include:

  • Enhancing leadership capability through the roll out of "hearts and minds" workshops, which focus on developing leadership skills, advancing DEI concepts and fostering open communication and trust. The first phase of the DEI capability building workshops has commenced across all BUs. The second phase will be completed by the end of the third quarter of 2025
  • Reimagining career development as part of a group-wide initiative included in our learning and development strategy, scheduled for implementation in 2025
  • Advancing DEI to ensure an inclusive workplace for persons with disabilities. We held a disability awareness campaign, which was broadcast across all BUs to enhance awareness and promote disclosure across the business
  • Improving employee engagement by collecting regular feedback on our post-survey action plans and reviewing employee listening strategies to further enhance our employee value proposition

We hosted CEO roadshows across all BUs to provide feedback and progress updates on agreed actions, which were well received by employees. We also introduced team journeys to improve communication and trust among teams and leadership, with significant progress made to date. Continuous improvement is planned for 2025, particularly in training and career development.

Exxaro's 2025 culture and engagement survey will evaluate the effectiveness of these initiatives and guide further enhancements to our workplace culture.

Employee relations management

Our approach to organised labour relations is defined by collaboration and constructive engagement. Trade union relationships are based on trust and integrity.

Our policies and procedures comply with best labour relations practices and relevant legislation. We manage individual and collective employee concerns with due respect.

We actively engaged with stakeholders across BUs to support a healthy and collaborative workplace and progressed in the long-term review process of our employee relations strategy. This approach is reinforced through established engagement structures and effective dispute resolution mechanisms.

To strengthen employee relations, we provided targeted workshops and training for employee relations managers and line managers, ensuring a shared commitment to building strong and constructive relationships.

As part of our capacity building efforts, we developed a comprehensive matrix of organisational goals and engaged trade unions to align with their capacity building objectives. Additionally, we initiated training for shop stewards to prepare them for wage negotiations conducted in 2024.

Housing

In compliance with the Mining Charter III and to ensure our business sustainability, we will not support hostel residents after 2025. Our housing strategy therefore encourages employees to become homeowners. In addition, bargaining unit employees receive a housing or living-out allowance.

Since 2017, 1 410 permanent employees have received mortgage repayment subsidies for first-time home buyers. Capital assistance of R125 000 significantly reduces employees' mortgages and improves affordability.

Our converted hostels (single-quarter accommodation or family units) are not fully utilised, with 33 employees living in these facilities (2023: 42). The lower utilisation rate could be due to employees taking up home ownership opportunities or using the living-out allowance option to seek other suitable accommodation.

We paid a housing allowance to 2 353 employees (2023: 2 213) and a living-out allowance to 3 561 employees (2023: 3 271).

Trade union representation

We maintain good relations with employees in bargaining units by engaging with their representative trade unions through formal structures.

Wage negotiation processes are conducted at employer level. These engagements determine negotiated conditions of employment and enable labour stability.

In 2024, 5 483 employees (2023: 5 376) were represented by affiliated unions recognised by Exxaro (NUM, Solidarity, AMCU, FAWU and NUMSA).

The wage agreements signed in 2021 expired in June 2024. Wage negotiations with all employers commenced in June and concluded in December 2024. We secured three-year wage agreements with all employers and these long-term agreements ensure ongoing labour stability across the business.

    Number of
employees
    2024 2023
AMCU   692 467
FAWU   25 32
NUM   4 419 4 543
NUMSA   100 56
Solidarity   247 278
Total   5 483 5 376
Employment equity

Our policies and skills development strategies allow us to meet our transformation objectives in support of the national imperative for a non-racial and transformed society. Appropriate affirmative action measures and people development programmes support our transformation processes and cultural engagements. We measure our transformation profile against the employment equity plans of each BU and employer.

We achieved our employment equity targets over the past six years, aligned with the Mining Charter III. Good progress was made against employment equity plans and we are on track to achieve, and potentially exceed, our targets. Our employment equity plans for the next five years, aligned with our DEI strategy, will enable us to address employment equity compliance.

Employment equity   Black male
employees
All female
employees
HDP1 Mining Charter III
targets (%)
Management category   Number % Number % Number % HDP Women
Top management   1 25 1 25 2 50 50 20
Senior management   37 40 22 36 70 76 60 25
Middle management   288 39.8 250 45 618 85 60 25
Junior management   1 183 48.3 724 35 2 049 83 70 30
1 Includes white female employees.
CENNERGI

Cennergi's employment equity plan aligns with legislation and the DEL Codes of Good Practice. Independent power producers are required to provide proof of meeting job creation obligations quarterly to the Department of Electricity and Energy (DEE) and underperformance could result in contract termination. In this way, the DEE ensures bidders are genuinely dedicated to enterprise development objectives.

Cennergi's employment equity plan was updated in 2024. Equity categories, with contractual commitments, encompass employment secured for South African citizens and local communities.

Hiring commitments are:

  • Amakhala Emoyeni: 97% South African citizens (77% black and 64% from local communities)
  • Tsitsikamma community windfarm: 80% South African citizens (50% black and 20% from local communities)
  • LSP: 80% South African citizens (60% black and 40% from local communities)

Cennergi consistently meets job creation targets and did not incur contract termination points or penalties from the DEE in 2024.

B-BBEE
Exxaro was certified as a level 2 B-BBEE contributor, retaining our empowerment level and status as one of South Africa’s largest and foremost black-empowered and diversified mining companies. Initiatives to improve the B-BBEE score are underway, including refined learning and development marketing practices targeted at minority groups and the absorption of learners.
Employee turnover

The turnover rate for the year was 3.6% due to abscondment, death, incapacity, dismissal, resignation and retirement (2023: 4.5%).

We had 6 966 permanent employees in 2024 (2023: 6 797) with 83% in bargaining units (2023: 83.81%) and 17% in the management and specialist category (2023: 16.19%).

Turnover by ethnicity (%)

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Turnover by age group (%)

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Turnover by category (%)

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Turnover by gender (%)

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Reasons for termination (%)

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Workplace harassment policy

This policy guides the prevention and management of sexual and racial harassment, ensuring such behaviours are not barriers to inclusion. It aligns with the codes of good practice on preventing and eliminating workplace harassment. Exxaro maintains a zero‑tolerance stance on all forms of workplace harassment.

Our interventions to prevent workplace harassment are yielding positive results, with two cases of sexual harassment reported this year (2023: zero). Both cases were finalised and the perpetrators were dismissed.

People with disabilities policy

Exxaro updated and socialised the people with disabilities policy, with additional policy reviews expedited to support people with disabilities initiatives. This process included establishing forums for people with disabilities across the business to promote a culture of inclusivity. We completed an environmental accessibility assessment, and actively monitored and reviewed action plans to identify gaps and support future initiatives for people with disabilities.

As part of our broader DEI strategy, a dedicated workstream drives initiatives that create an accessible and inclusive workplace for people with disabilities. In 2024, we placed an emphasis on building disability awareness and fostering workplace confidence, ensuring that leaders recognise and address their own and their teams' unconscious bias.

Key milestones achieved in 2024 include:

  • Developing and adopting a people with disabilities leaders toolkit
  • Addressing employee work accessibility issues
  • Creating a fair and equitable process for the provision of reasonable accommodation
  • Launching a disabilities declaration campaign, where the issue of stigma was addressed
  • Communicating available tax benefits for employees with disabilities and their families, including claiming 33.3% of qualifying out-of-pocket medical expenses, as prescribed by SARS
  • Progressing towards a 2% workforce profile of employees with disabilities, reaching 1.7% in 2024, with deliberate actions planned over the next two years to meet the target
Eliminating discrimination and resolving grievances

Guided by our values, we are committed to equal opportunity, irrespective of race, religion, gender, health status, sexual orientation or nationality. We believe that our diversity and differences strengthen our potential.

We embrace the diversity of our strengths and individual skills to enable exceptional outcomes and promote a culture of inclusivity. Accordingly, we invest in upskilling and training managers and supervisors to appropriately apply necessary disciplinary measures.

Two cases of alleged discrimination or grievances were filed (2023: zero).

Our primary focus in 2025 will be:

  • Reviewing the effectiveness of initiatives implemented through a pulse survey to inform the next phase of Exxaro's culture journey
  • Resetting the culture journey, defining key priorities for each milestone to position Exxaro for the next chapter of growth
  • Strengthening leadership capability to foster an inclusive, psychologically safe workplace, enhancing the overall employee experience
  • Introducing a compelling employee value proposition framework with distinctive offerings to position Exxaro as an employer of choice
  • Launching men's forums across BUs to address issues specific to men and support Exxaro's gender equity priorities
  • Collaborating with organised labour to implement the provision of the agreed long-term wage agreements
  • Establishing a unified disciplinary framework across all Exxaro employers to enhance BU alignment and reporting efficiency
  • Enhancing employee engagement platforms to listen, learn and improve based on employee feedback
  • Enabling continuous skills alignment with future organisational needs through succession management to enhance business continuity and motivating employees with clear progression trajectories at Exxaro