Exxaro Resources Limited
Environmental, social and governance report for the year ended 31 December 2024 

Our environmental stewardship

Our ESG approach

To deliver on our strategic objective of becoming a catalyst for economic growth and environmental stewardship, we incorporate responsible business practices in everything we do. Not only do we aim to mitigate and manage our negative impact on natural resources, we also contribute to enhancing ecosystem resilience and the lives of our employees and communities.

In this chapter

We unpack our approach and performance through the following lenses:

We deliver environmental stewardship by...

We are positioning Exxaro to win through our resilient strategy, which underpins...

Unpacked in this chapter
Highlighted in this chapter and measuring and monitoring our performance on delivering meaningful and positive impact
Engagements and collaboration in achieving our goals and initiatives summarised in this chapter, with stakeholder needs and concerns unpacked from stakeholder-inclusive approach

Reflecting on our environmental stewardship over the years

Our environmental stewardship approach at a glance

We are guided by our environmental policy in delivering on our environmental commitments, which is further driven group-wide through:

Accountability and responsibility
The RBR committee oversees environmental management and impact at the board level, with implementation led by the chief sustainable impact officer. This role is supported by sustainability and BU managers who execute environmental strategies across the group.
Regulatory compliance

We adhere to local laws and management standards, and incorporate current and forward‑looking best practices.

Cennergi's environmental and social management system addresses impacts according to local standards and principles, as well as international guidelines, including the Equator Principles, the International Finance Corporation (IFC) performance standards and the World Bank.

Beyond compliance
We exceed compliance through our participation in voluntary benchmarks, such as the CDP disclosure projects for climate, forests and water.

We manage our environmental and social impacts by embedding performance principles into our ESG management systems, environmental policies and management practices.

Our environmental policy incorporates:

  • Environmental management programmes that ensure compliance with legislation, securing licences for all regulated activities
  • Integrated management standards that guide our environmental activities
  • Incident management and reporting through a standardised system, enabling BUs to respond promptly to incidents and minimise negative impacts. Incidents and mitigation actions are promptly reported to authorities
  • Precautionary principles, as outlined by NEMA, to assess our environmental impacts responsibly
  • Commitment to exceed minimum regulatory requirements, supporting human rights and upholding our environmental licence to operate
  • Performance-based incentives within our STI scheme, aligned with the decarbonisation plan and Sustainable Growth and Impact strategy, motivating employees to meet high standards
  • Stakeholder engagement and collaboration to address concerns, pursue shared benefits, and support environmental and socio-economic development initiatives

Our strategic response

Our Sustainable Growth and Impact strategy guides the evolution of our environmental policy as we progress against delivering on our ESG objectives embedded in our strategy:

ESG objectives     Supporting the achievement of our
Sustainable Growth and Impact strategy
  Decarbonisation and resilience To implement cross-cutting measures to decrease carbon emissions emanating from our operations and building on adaptation and resilience      
  Air quality To reduce air pollution, including dust fallout, PM10 and PM2.5      
  Rehabilitation programme To close and rehabilitate mines for a positive social impact legacy      
  Biodiversity management To protect and conserve biodiversity within our area of influence through the implementation of management plans and initiatives that promote and enhance biological diversity      
  Energy and water management To set water and energy targets aligned to our national benchmarks, industry standards and site objectives, and to allow for future resilience of the business, environment and communities      
  Waste management To minimise our environmental impact by promoting waste management hierarchy and transforming waste streams into opportunities for a circular economy model      
  Strategic partnerships To partner with various stakeholders to enable the successful delivery and broader positive impact of our ESG objectives      

 

Further
reading

How we are embedding ESG-related risks and opportunities in the business Embedding ESG in our business
Our materiality determination process and environment-related material matters Material matters

Exxaro's wheel of excellence, detailed below, provides a consistent framework for environmental stewardship across the group, ensuring alignment in compliance, implementation, monitoring and reporting at every level. It enables the seamless integration of new assets and guides BUs in building essential competencies to achieve high environmental standards.

Our environmental commitments are categorised into key focus areas, each underpinned by targeted strategies and policies:

How we performed

Key highlights

Progressed against our decarbonisation journey, and identified and implemented decarbonisation projects and opportunities for the short to medium term, which included planting 16 000 Spekboom trees at Grootegeluk and Leeuwpan as part of nature-based solutions adopted

Improved disclosure through participation in the CDP     Planted 100 trees on rehabilitated land at Belfast as part of adopted nature-based solutions     Planted 100 trees at Matla to create a wind break and mitigate the impact of dust from the area  
Achieved an energy intensity of 27.688GJ/kt against our 2024 target of 32.329GJ/kt     Achieved a carbon intensity of 4.12tCO2e/ kTTM against our target of 4.2tCO2e/kTTM     Achieved a water intensity of 142L/t RoM against our target of 180L/t RoM  
Collected data on air pollutants at Grootegeluk – a key result of the multi‑pollutant ambient air quality monitor installed     No environmental fines, complaints or penalties recorded (2023: none)    
CENNERGI

Cennergi did not record any significant environmental incidents during the year (2023: none)

 

In 2024, we sharpened our focus on environmental priorities critical to our carbon neutrality goal for 2050. To drive decarbonisation, we advanced energy efficiency initiatives, implemented nature-based solutions and introduced energy and water performance metrics across all functional areas and strengthened our commitment to resource circularity.

We are also exploring strategic partnerships, adopting green technologies, and employing robust environmental management tools to further enhance sustainability.

Seven

level 1 incidents recorded

(2023: three)

Key challenges

The Matla WUL renewal application was declined in 2022. There were various engagements between Exxaro and DWS which concluded in Exxaro conceding to line the Matla pollution control dams. Supporting documentation (including the designs for the dams) were submitted to DWS for the finalisation of the WUL.

Environmental incidents

Since updating our environmental incident management standard in 2021 to include level 0 incidents (those posing a potential risk but with no environmental impact), we have continued to monitor these events closely.

In 2024, Exxaro recorded 45 level 0 incidents (2023: 53), seven level 1 incidents (2023: three) and zero level 2 and 3 incidents.

Environmental complaints, penalties and fines

Environmental complaints can be raised during stakeholder engagements, by phone, letter, or in the complaints book at each mine entrance. These are managed by environmental teams with support from head office specialists, who ensure corrective actions are implemented and monitored. Exxaro is exploring an electronic system to manage environmental complaints.

In 2024, Exxaro received no new environmental complaints.

Regulatory changes

The Climate Change Act 22 of 2024 was signed into law on 23 July 2024. This Act establishes a comprehensive framework for South Africa's climate response, including mitigation and adaptation measures. It introduces sectoral emission targets and mandates carbon budgets for major emitters, aiming to transition the nation towards a low-carbon, climate‑resilient economy. As a key player in the mining sector, we are aligning our operations with these new requirements to comply with the Act.

In 2025, the focus will remain on reducing emissions and energy consumption, protection of ecosystems, resource circularity, policy and regulatory developments in the ESG space. The ESG PMO will further aim to embed ESG criteria into project delivery through the integration of ESG KPIs.