King IV articulates the responsibilities of the board, which is to steer an organisation strategically in line with its core purpose and values by approving and monitoring an informed short, medium and long-term strategy while considering sustainability-related impacts, risk and opportunities.
The board sets Exxaro's short, medium and long-term strategic direction through our Sustainable Growth and Impact strategy. It enables sustainable value creation through the approval of a capital allocation model and budget, setting and monitoring performance and culture expectations as well as a group governance framework.
The board supports King IV strategy-setting principles through an iterative process. Before executive management's strategy presentation to the board, iterative strategy workshops β which follow a bottom-up process – and board governance sessions ensure input is integrated into the group strategy.
During our annual strategy review process, management demonstrates how sustainability and ESG objectives are integrated into the Sustainable Growth and Impact strategy, including status and progress in our context.
Our integrated medium to long-term decarbonisation roadmap to achieve carbon neutrality by 2050 was submitted for a peer review to ensure its credibility and subsequent implementation.
During the year, the board reviewed and was satisfied with the key macro-economic indicators and assumptions used to compile the 2025 budget.
As part of holistic strategic performance monitoring, prioritised KPIs align with the Sustainable Growth and Impact strategy. This provides forward-looking insights and monitors the execution of our strategy for the board, board committees, group and energy executive committees, in line with our tiered governance approach.
We use a strategic performance monitoring dashboard to report on the achievement of these KPIs.
For more on our performance see:
Performance against our strategy
Delivering meaningful and positive impact
To strengthen GHG mitigation and business resilience efforts, we included water intensity and energy intensity targets in the group-wide GIS in 2022.
Total carbon emissions and energy intensity are also included as part of Exxaro's strategic performance monitoring dashboard.
Reducing absolute emissions is essential to our commitment to carbon neutrality by 2050, and tracking scope 1 and 2 emissions allows us to measure our progress in minimising our carbon footprint. Lower energy intensity indicates greater efficiency, supporting our decarbonisation targets and reducing our operations' environmental impact.
Implementation of these two KPIs since 2023 is a progression of our Climate Change Response strategy, our goal to be carbon neutral by 2050 and further alignment with the TCFD recommendations.
Responding to TCFD reporting requirement
The RBR committee plays a key role in assessing and reviewing the group's business resilience programme, and ensuring that appropriate measures are in place for business recovery. The committee is responsible for driving the company's resilience agenda, ensuring that our business continuity strategies align with best practices and regulatory requirements.
Exxaro is fully committed to building organisational resilience and, by maintaining a strong business resilience programme and aligning it with our ERM programme, we are protecting the interests of our stakeholders, and ensuring that we can continue to deliver on our commitments, regardless of the challenges we may face.
We continuously review and update our business resilience framework to ensure it remains aligned with best practice and governance standards. The company regularly evaluates the effectiveness of its business resilience programme, making improvements when required.
Internal reporting to the board requires management to detail the outcomes of proposed recommendations to the board in respect of:
The board is committed to clear and comprehensive financial reporting and disclosure as well as constructive shareholder engagement, including transparency of activities and performance. It therefore ensures that reports issued by the company enable stakeholders to make informed assessments of the group's performance as well as its short, medium and long-term prospects.
Refer to the assurance report for details on assurance of key sustainability information.
For more on how Exxaro created value for our stakeholders, including government, employees, communities, investors and customers, refer to the stakeholder-inclusive approach.
IR