Performance against our strategy

Our clear and ambitious objectives enable us to progressively incorporate our Sustainable Growth and Impact strategy into our operations.

We measure and manage our performance over time using KPIs to monitor our progress towards our strategic objectives while catalysing discussion and analysis within our organisation. KPIs ensure we address our ESG commitments and enable the achievement of these ambitious goals.

As outlined in the tables below, our KPIs are grouped per capital in relation to how their continued availability, quality and affordability impact our strategic objectives.

Key	Description
	Linked to remuneration (short-term incentive)
	Linked to remuneration (long-term incentive)

Trend	Description
	Progress has regressed or fallen behind the expected trajectory towards achieving our 2030 targets
	Progress remains steady, with no significant changes. While consistent, further movement is needed to advance towards our 2030 targets
	Moderate progress – positive movement observed, but the pace needs to accelerate to meet our 2030 targets
	On track – progress aligns with the projected pathway to achieve our 2030 targets

Transition at speed and scale

Why it matters

Strategies to achieve our objectives

Material themes

The shift towards a low-carbon economy is imperative due to the growing demand 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 business and societal impact.

Enabling a transition to a low-carbon world while leveraging core competencies in mining and logistics through our minerals business approach, with comprehensive screening criteria to identify key energy transition minerals for future growth
Expanding renewable capacity and capabilities to support operational energy needs and contribute to South Africa's renewable energy landscape through our energy solutions business , contributing to the country's low-carbon transition

SDGs impacted

Progress against our strategy

Diversification of our business towards energy transition minerals is ongoing as we evaluate and advance potential acquisition targets that meet our investment criteria through our internal approval committees. We have bolstered our capabilities across the mergers and acquisitions lifecycle to ensure the effective execution of our diversification objectives. This strengthening of expertise positions us well to accelerate delivery in the coming years. The expansion of our energy solutions business has progressed, with the construction of our LSP set for commercial operation in mid-2025. This addition marks a key step forward in expanding our generation capacity and underscores our commitment to meeting our long-term targets. We remain committed to advancing our strategy with agility and rigour, recognising that the foundation we have built will enable us to drive progress at the necessary scale.

See financial capital and manufactured capital for more detailed information.

Measuring related capital inputs


			Target		Performance
Related capitals	Performance indicator	Why this KPI matters	2030 (medium term)	2026 (short term)	2024	2023	2022	Trend
	EBITDA contribution from new minerals (%)	As a measure of operational profitability, tracking EBITDA from new minerals provides insight into our earnings diversification efforts as we invest in low-carbon resources, demonstrating our progress toward building a sustainable and profitable portfolio aligned with our transition objectives.	50	30	0	0	0
	Installed generation capacity (MW net)	Measuring installed renewable energy capacity reflects Exxaro’s commitment to clean energy. As more renewable projects (such as wind and solar) are brought online, our capacity to generate low-carbon energy grows, supporting South Africa’s energy security and reducing reliance on fossil fuels.	1 600	780	229	229	229

Make our minerals and energy businesses thrive

Why it matters

Strategies to achieve our objectives

Material themes

Focusing intensively on our core delivery areas, particularly minerals and energy, is vital for driving future growth and long-term sustainability. By optimising our coal reserves, we can support current energy needs while responsibly transitioning towards a low-carbon, sustainable future. This approach reduces the risk of stranded, high-value assets and boosts operational efficiency, enabling us to capitalise on opportunities within the green economy. Additionally, selectively divesting from non-core assets allows us to streamline our portfolio and strategically reinvest in energy transition minerals critical to the low-carbon transition while also pursuing diversification to explore new growth avenues, which will further enhance resilience.

Maintaining a resilient coal business that remains profitable through cost efficiency, price optimisation and market to resource optimisation
Embedding sustainable mining practices into Exxaro's ways of working, focusing on ESG and health and safety
Enhancing portfolio value in the short to medium term while delivering the early value strategy

SDGs impacted

Progress against our strategy

Our production was slightly below target. However, by maintaining a strong focus on our early value and market to resource optimisation strategies, along with our operational excellence initiatives, we achieved our ROCE goals and an EBITDA margin in line with our prior guidance, demonstrating the resilience and strength of our business, even in the face of external challenges.

See financial capital and manufactured capital for more detailed information.

Measuring related capital inputs


			Target		Performance
Related capitals	Performance indicator	Why this KPI matters	2030 (medium term)	2026 (short term)	2024	2023	2022	Trend
	Coal product (Mt)	Coal production reflects our ability to deliver on production targets, directly impacting revenue generation and market supply. Monitoring coal output helps assess operational efficiency and the sustainability of our resource management, supporting South Africa's financial resilience and energy security.	46	44	39.5	42.5	43.1

	EBITDA margin (managed operations) (%)	EBITDA margin measures operational profitability and cost management effectiveness. A strong margin reflects resilience in volatile markets and supports our ability to reinvest in growth areas and sustain financial health.	29	29	26	35	41
	ROCE (%)	ROCE measures how effectively we generate returns from the capital invested in our business, demonstrating our ability to maximise capital efficiency and translate invested capital into long-term stakeholder value.	>20	>20	23	35	45
	Solvency ratio (times)	Solvency ratio measures our financial stability and capacity to meet long-term obligations. A healthy ratio ensures we maintain the flexibility to fund strategic initiatives, weather market fluctuations and support our growth objectives.	2 to 3	2 to 3	3.6	3.5	3.3

Empower people to create impact

Why it matters

Strategies to achieve our objectives

Material themes

Our organisation's strength lies in the capabilities and dedication of our people and partners. By empowering them with skills and capabilities while fostering a culture of innovation and accountability, we position ourselves to make significant strides towards our goals. This helps us reach organisational objectives and amplifies our contribution to society and the economy, ensuring our work resonates with purpose and leads to lasting positive change.

Embedding a strong safety culture through our proactive safety strategy
Supporting employee wellbeing to ensure a healthy, motivated workforce through our health and wellness strategy
Driving inclusion and employee engagement by fostering a representative workforce, addressing systemic barriers and ensuring leadership diversity under our DEI strategy
Upskilling and reskilling our workforce for lowcarbon technologies through our talent management strategy
Driving innovation and operational effectiveness with our iNNOVAXXION strategy

SDGs impacted

Progress against our strategy

In 2024, our safety strategy made significant strides, marked by several key highlights and focus areas. A major achievement was the introduction of XXoro, an AI technology that streamlines access to processes and safety procedures. Furthermore, we hosted our annual CEO safety summit and leadership safety day, where executives engaged in discussions on strategic initiatives and innovative approaches to achieving zero harm. These initiatives have significantly advanced our journey towards zero harm, enabling Exxaro to reach the milestone of two years fatality-free, reinforcing our commitment to creating a safer work environment for all.

We achieved level 2 B-BBEE compliance, with preferential procurement scores improving from 26.44 points in 2023 to 27.47 points in 2024.

See intellectual capital and human capital for more detailed information.

Measuring related capital inputs


			Target		Performance
Related capitals	Performance indicator	Why this KPI matters	2030 (medium term)	2026 (short term)	2024	2023	2022	Trend
	Fatalities	Our commitment to safety strengthens our human capital, ensuring our people are safe, motivated and aligned with our strategic objectives.	0	0	0	0	1
	LTIFR	Reducing the LTIFR demonstrates our dedication to employee safety and wellbeing. A low LTIFR demonstrates a culture of care and accountability, which is fundamental to sustaining high productivity and adaptability.	n/a*	n/a*	0.06	0.07	0.05

	B-BBEE contribution level	Improving our B-BBEE level underscores our commitment to inclusivity, social responsibility and a positive contribution to South Africa's empowerment objectives. This commitment strengthens relationships with communities and stakeholders, aligning our operations with broader socio-economic goals.	3	3	2	2	3

*	Target based on previous performance, with the current year target being 0.05.

Be carbon neutral by 2050

Why it matters

Strategies to achieve our objectives

Material themes

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 contribute to the global effort to mitigate climate change impacts. We will realise this ambitious goal by strategically decarbonising our portfolio and integrating social impact initiatives that promote environmental responsibility and drive positive social change. 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.

Driving decarbonisation, including a focus on the reduction of scope 3 emissions across the value chain, through our Climate Change Response strategy and decarbonisation plan

SDGs impacted

Progress against our strategy

Our short-term goal remains reducing our scope 1 and 2 emissions by at least 40% by 2030. To achieve this, the commissioning of our first self-generation project (the LSP) is on track and will contribute a further 161ktCO₂e reduction to our scope 2 emissions. Additional renewable energy projects at our Mpumalanga operations and energy efficiency projects across all operations will also contribute to the achievement of our short-term targets.

See natural capital for more detailed information.

Measuring related capital inputs


			Target		Performance
Related capitals	Performance indicator	Why this KPI matters	2050 (long term)	2030 (medium term)	2024	2023	2022	Trend
	Absolute emissions (ktCO₂e)	Reducing absolute emissions is essential to our commitment to carbon neutrality by 2050. Tracking scope 1 and 2 emissions allows us to measure our progress in minimising our carbon footprint, which is directly linked to our operations.	Carbon neutrality	40% reduction in scope 1 and 2 emissions (582ktCO₂e)	936	953 (2% reduction)	971
	Energy intensity (GJ/kt)	Monitoring energy intensity helps us optimise energy use per unit of output, contributing to cost efficiency and emissions reduction. Lower energy intensity indicates greater efficiency, supporting our decarbonisation targets and reducing our operations' environmental impact.	30	30	27.688	27.722*	29.812*

*	2023 and 2022 figures have been updated following an assurance review. This did not materially impact the group energy intensity number.

Become a catalyst for economic growth and environmental stewardship

Why it matters

Strategies to achieve our objectives

Material themes

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. 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.

Focusing on local economic upliftment and community-driven projects through our Social Impact strategy
Ensuring long-term sustainability through our environmental stewardship initiatives
Enhancing trust through our ethics and employee relations strategies

SDGs impacted

Progress against our strategy

As part of our Social Impact strategy, we continued to support emerging local farmers. However, the crop yield performance of the supported farmers declined from 2023 levels due to unfavourable conditions, such as frost and insufficient water supply. Further, we have extended our support to SMMEs to a total of 178, primarily with the addition of 27 micro‑enterprises via the Pitch for Funding programme.

Our water intensity targets remain below industry norms because we have implemented internal water pricing and invested in projects such as the Belfast water treatment plant and Grootegeluk Oliphantskop dam lining. Additionally, we continued water management efforts to ensure climate resilience and safeguard our natural resources for the future and have maintained our favourable ESG rating as per FTSE Russell.

See social and relationship capital, natural capital and ethical culture for more detailed information.

Measuring related capital inputs


			Target		Performance
Related capitals	Performance indicator	Why this KPI matters	2030 (medium term)	2026 (short term)	2024	2023	2022	Trend
	Crop yield to market (tonnes)	Supporting sustainable crop production and market access directly contributes to food security and economic stability in local communities. This KPI highlights our role in empowering local farmers to build selfsustaining livelihoods.	15 000	13 000	6 008	10 011	5 600
	Financially sustainable SMMEs supported (number)	SMMEs are the backbone of local economies. By nurturing and supporting these businesses, we stimulate economic activity, create jobs and foster entrepreneurial growth, ensuring long-term economic resilience in the regions where we operate.	295	207	178	118	105
	ECD school readiness (%)	ECD is critical for laying the foundation for lifelong learning and future economic participation. By enhancing school readiness, we contribute to building an educated and capable workforce, ensuring that communities can thrive independently over time.	90%	90%	n/a*	n/a*	n/a*	n/a*

	Water intensity (kL/tonne RoM)	Efficient use is crucial for preserving water, especially in water-scarce regions. Tracking water intensity helps us minimise our operational impact, ensure resource availability for future generations and align with global sustainability standards.	0.170	0.175	0.142	0.105	0.150
	FTSE Russell Rating	This rating measures our ESG performance, providing an external benchmark of our progress towards sustainability and ethical business practices. A strong rating demonstrates our commitment to socioeconomic growth and environmental stewardship, increasing stakeholder confidence and aligning with international best practice.	4	4	4	3.9	4

*	As the ECD programme was launched in 2023, there is no data for 2022 to 2024. The programme’s first cohort intake was in 2024, and school readiness will only be assessed through the national benchmark test in 2027, when the first cohort is in grade R.