Introduction

About this report

This environmental, social and governance (ESG) report presents Exxaro’s progress, performance and priorities in delivering sustainable value. It highlights our key impacts, achievements and future focus areas as we advance our ESG commitments.

Reporting theme

Accelerating our strategy to become a diversified natural resources champion

We are pleased to present our 2025 ESG report, which showcases how we are accelerating our strategy by delivering on our ESG commitments.

We are committed to decarbonisation, responsible production and inclusive socio-economic development. For us, an impactful transition benefits our people and communities, especially the most vulnerable. This shapes how we diversify our business, invest in our host communities, create opportunities and contribute to an inclusive future.

Our refined leadership structure strengthens accountability, agility and responsiveness as we continue to deliver sustainable growth and meaningful impact.

Reporting scope and boundary

This report covers material information for the year 1 January 2025 to 31 December 2025 (the 2025 financial year) and includes:

Financial and non-financial ESG information of our wholly owned and joint operations in South Africa
Material information and safety incidents about the Cennergi group of companies (Cennergi)
Limited information on operations where we:
- Do not have management control but hold significant equity interest, namely Black Mountain, Richards Bay Coal Terminal Proprietary Limited and Sishen Iron Ore Company Proprietary Limited, or
- Have joint control, being Mafube Coal Proprietary Limited joint venture (JV) and the Moranbah South project (joint operation)

Assurance

We apply a combined assurance model to support the integrity of information used in decision making and external reporting.

Internal assurance

The executive committee, various departmental heads and board sub-committees review this report before submission to the board for review and approval.

Year-end data for the group and BUs is assured by our internal audit function during the annual audit process, overseen by the board and audit committee.

External assurance

KPMG Inc. provides assurance on select sections and data in this report, including 16 strategic sustainability key performance indicators (KPIs), marked as reasonable assurance (RA).

Refer to the assurance report for details.

How we determine information to disclose

Our double materiality process guides the information included in our reporting suite by identifying issues that influence enterprise value (financial materiality) and those that affect the environment, communities and society (impact materiality). As these priorities can evolve, we review them annually to ensure our reporting remains current.

Detailed information about our materiality determination process can be found in the integrated report.

Information on ESG-related material matters.

Frameworks, guidelines and regulations informing our ESG disclosure and approach

Integrated Reporting Framework

Companies Act, 2008 (Act 71 of 2008), as amended (Companies Act)

International Financial Reporting Standards (IFRS^®) Accounting Standards*

JSE Limited (JSE) Listings Requirements and Debt and Specialist Securities Listings Requirements

Department of Trade, Industry and Competition (dtic) Broad-based Black Economic Empowerment (B-BBEE) Codes of Good Practice

The effective parts of the Broad-based Socio-economic Empowerment Charter for the Mining and Minerals Industry 2018 (Mining Charter III)

King IV Report on Corporate Governance™ for South Africa, 2016 (King IV)**

South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves, 2016 edition (SAMREC Code)

In accordance with Global Reporting Initiative standards

United Nations Global Compact (UNGC)

Sustainability Accounting Standards Board***

Task Force on Climate-related Financial Disclosures (TCFD) recommendations***

*	As issued by the International Accounting Standards Board.
**	Copyright and trademarks are owned by the Institute of Directors South Africa NPC and all of its rights are reserved.
***	This falls under the custodianship of the IFRS Foundation^®.

We support the IFRS Sustainability Disclosure Standards developed by the International Sustainability Standards Board (ISSB)

Exxaro complies with all applicable legislation and financial reporting frameworks while monitoring developments in sustainability reporting. We support the voluntary adoption of IFRS S1 and IFRS S2, effective from 1 January 2024, which promote consistent and transparent disclosure of sustainability-related risks and opportunities. We engage with industry bodies and monitor government discussions on the implications of these standards for South African businesses.

We acknowledge the TCFD’s integration into the ISSB’s oversight and support the ISSB and Global Reporting Initiative collaboration to promote aligned and complementary reporting standards. In 2025, our key focus was operationalising our decarbonisation roadmap in line with our broader sustainability commitments.

Refer to responding to a changing climate for details.

King V adoption

Exxaro continues to uphold the principles of sound corporate governance and ethical leadership as articulated in the King IV report. Following the release of King V, the company has commenced a structured transition process to align with the updated principles and recommended practices. This includes conducting a comprehensive gap analysis to assess alignment between King IV and King V, with a specific focus on identifying any areas requiring enhancement or refinement. The board, supported by its committees, is overseeing this process to ensure that governance practices remain robust, relevant and future-fit. In parallel, Exxaro is reviewing its governance disclosures to ensure continued transparency and alignment with evolving reporting expectations under King V. The outcomes of this process will inform a phased implementation approach, with progress to be reported in future integrated reports.