Materiality considerations are a crucial guide for our reporting practices. The matters we view as 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 perform an annual assessment of our material matters based on a detailed double materiality determination process. This enables us to identify our impact materiality (our outward impact on society, communities and the environment) and our financial materiality (matters that impact our ability to generate revenue and preserve stakeholder value over time). The process involves:
Consider internal inputs, including risk registers, stakeholder surveys and strategy
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 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 materiality matrix below, along with the material theme discussions, depicts the relative disclosure levels across this report and our ESG report.
Recognising that materiality is dynamic in nature, the process is conducted annually. This allows us to regularly and timeously reflect on matters that may evolve from being material from an impact perspective to being financially material. This year’s review resulted in the 34 matters from 2023 being consolidated into 24 matters, across the same seven overarching themes. Changes to the matters are indicated in the footnotes on the next page and movements in the overall themes on the pages that follow.
| A | Macro-economic and geopolitical environment** |
| B | South African infrastructure and service delivery impediments^ |
| C | Commodity price fluctuations^ |
| D | Social licence to operate^ |
| E | Upholding and respecting human rights^ |
| F | Sustainable job and business creation^ |
| G | Supporting a just transition to a low-carbon economy |
| H | Sound financial performance and capital excellence** |
| I | Logistical impediments^ |
| J | Supply chain management* |
| K | Innovation and digitalisation |
| L | Health, safety and wellness |
| M | Workforce DEI^ |
| N | Labour relations |
| O | Transparency, ethics and integrity |
| P | Embedding ESG |
| Q | Legal, regulatory, risk and compliance excellence** |
| R | Carbon emissions reduction and impact of climate change** |
| S | Water stewardship |
| T | Waste and pollution management** |
| U | Biodiversity and rehabilitation management** |
| V | Environmental incidents |
| W | Diversify responsibly into energy transition minerals and grow our energy solutions business while protecting and optimising our coal portfolio and business** |
| X | Build a leading energy solutions business |
| * | New matter |
| ** | Individual matters consolidated into one matter. |
| ^ | Matter or theme renamed, expanded or refined |
Adapting to a changing context
Our operating context is ever-changing, with social, political and economic issues influencing our ability to create value. In addition, commodity prices impact the revenue generated from our resources. To remain competitive, we must respond to the current context and anticipate the future.
Material matters |
IR | ESG | |
| Macro-economic and geopolitical environment |  |
 |
|
| South African infrastructure and service delivery impediments | |
|
|
| Commodity price fluctuations | |
|
|
Related risks
Strategic response
Detailed disclosure
Summarised disclosure
Building sustainable communities
Our business activities affect our stakeholders who, in turn, respond to these impacts. Maintaining our social licence to operate depends on the strength of our relationships with our stakeholders, how we protect the natural environment and our adherence to legislation.
Material matters |
IR | ESG | |
| Social licence to operate |  |
 |
|
| Upholding and respecting human rights | |
|
|
| Sustainable job and business creation | |
|
|
| Supporting a just transition to a low-carbon economy | |
|
|
Related risks
Strategic response
Detailed disclosure
Summarised disclosure
Driving business resilience
Business resilience supports the achievement of our strategic objectives. We enhance our business resilience through robust financial results, building strength and protecting human and labour rights in our supply chain, effective capital allocation, compliance excellence, entrenching innovation and driving digitalisation.
Material matters |
IR | ESG | |
| Sound financial performance and capital excellence |  |
 |
|
| Logistical impediments | |
|
|
| Supply chain management | |
|
|
| Innovation and digitalisation | |
|
|
Related risks
Strategic response
Prioritising good governance, financial capital and intellectual capital
Detailed disclosure
Summarised disclosure
Executing our strategy
Our employees drive our strategy and enable our performance. Delivering on our strategic goals requires a safe working environment and a culture that promotes DEI, while driving adaptability and innovation.
Material matters |
IR | ESG | |
| Health, safety and wellness |  |
 |
|
| Workforce DEI | |
|
|
| Labour relations | |
|
|
Related risks
Strategic response
Detailed disclosure
Summarised disclosure
Enabling a thriving workforce
Recognising that climate change is an undeniable reality, we developed a strategy and business objectives to respond to the short and long-term risks and opportunities it presents. Our response includes diversifying our assets, growing our energy solutions business and optimising our coal portfolio by disposing of non-core assets.
Material matters |
IR | ESG | |
| Diversify responsibly into energy transition minerals and grow our energy solutions business while protecting and optimising our coal portfolio and business |  |
 |
|
| Build a leading energy solutions business | |
|
|
Related risks
Strategic response
Detailed disclosure
Summarised disclosure
Principled governance
We prioritise corporate governance principles to enhance stakeholder trust, strengthen our reputation as a good corporate citizen and bolster our resilience in a changing environment.
Material matters |
IR | ESG | |
| Transparency, ethics and integrity |  |
|
|
| Embedding ESG |  |
|
|
| Legal, regulatory, risk and compliance excellence | |
|
|
Related risks
Strategic response
Detailed disclosure
Summarised disclosure
Responsible environmental stewardship
We recognise the impact of mining on the environment and must ensure we are responsible stewards of the natural resources upon which our operations and communities rely. Our goal is to ensure a sustainable future for our employees, communities and the planet.
Material matters |
IR | ESG | |
| Carbon emissions reduction and impact of climate change |  |
 |
|
| Environmental incidents | |
|
|
| Water stewardship | |
|
|
| Waste and pollution management | |
|
|
| Biodiversity and rehabilitation management | |
|
|
Related risks
Strategic response
Detailed disclosure
Summarised disclosure
IR
