As a leading global diversified resource company committed to sustainable development, Exxaro is committed to contributing to achieving the United Nations Sustainable Development Goals (SDGs). We participate in the National Business Initiative in South Africa to align the 17 SDGs with the country’s National Development Plan. Through our strategy, we will continue to support the country in implementing the National Development Plan and the most material SDGs. We employ leading practices in upholding the most material SDGs for our business to leave a lasting net positive impact.
In 2022, Exxaro made significant progress on our ESG journey. We achieved our target of reducing greenhouse gas emissions by 5% and are on track to achieve our net-zero emissions target by 2050. We continued investing in our people and communities, creating over 1000 new jobs.
Exxaro is a leader in business management with sound ESG principles that deliver sustainable economic returns and tangible benefits for all stakeholders. The group is ranked #1 for ESG performance-selected resource company metrics in terms of the FTSE Russell index. We conduct our business activities in a way that creates success for Exxaro and society. From how we mine to what we mine, we steward our natural assets and social capital to uplift our communities.
With a track record confirming that we deliver solid returns, Exxaro continues to present an outstanding investment opportunity. Our exemplary ESG performance is evident in our above-target safety performance, our management of COVID-19 risks, and our climate change response strategy, demonstrating our commitment to the Task Force on Climate-related Financial Disclosures (TCFD) guidelines. Selected key sustainability metrics have been independently assured by PwC (see the Assurance Report). This process confirms our commitment to continuously improving our reporting to our stakeholders.
for ESG performance-selected resources company metrics, in terms of the FTSE Russell index.
is our target for 2050. We are on track to achieve this.
new jobs created.
We are committed to continuing our ESG journey in 2023 and beyond, with a focus on the following areas:
We believe sustainable development is essential for our business and the future of our planet.
We are committed to playing our part in creating a more sustainable world.
Exxaro is committed to responsible stewardship of the environment. We have a comprehensive set of environmental policies and procedures to minimise our environmental impact, including reducing greenhouse gas emissions, conserving water, protecting biodiversity, and reducing waste.
Read more about the initiatives essential to building a sustainable future for our company and the planet.
Our business activities significantly impact society, and we are committed to using our influence to make a positive difference. We are dedicated to supporting the development of society, including investing in education and skills development, supporting community development projects, and promoting good governance and ethical business practices.
Our social commitments are categorised as three key focus areas in our 2022 ESG report, each supported by specific strategies and policies.
Good governance is essential to building a sustainable business. Our board of directors oversees the company’s management and ensures it complies with all applicable laws and regulations. The board is also responsible for setting the company’s strategic direction and aligning it with its values and objectives.
The board comprises a diverse group of experienced and independent directors. The directors are committed to the 16 principles of good corporate governance set out in the King IV Report on Corporate Governance for South Africa, 2016 (King IVTM).
The board balances the company’s interests as a responsible citizen with stakeholders’ legitimate interests and expectations. By reporting on risk management, corporate governance, and anti-corruption measures, the board is committed to ensuring that the company is a good corporate citizen and that it contributes to the sustainable development of South Africa.
Our ESG performance is benchmarked against our peers who exhibit the global best practices expected by responsible investors.
Global ratings agencies evaluate our ESG performance using publicly available information (annual reports, websites, and media) in line with various requirements.
In 2022, we were rated by FTSE Russell, Institutional Shareholder Services ESG, Moody’s, Vigeo Eiris, Sustainalytics, MSCI, the Bloomberg Gender-Equality Index (GEI) and the TPI.
The FTSE Russell ESG Index series measures our ESG risks and impact performance with a score out of five rated in terms of themes relevant to our mining context. The ESG report discloses performance against the relevant themes outlined below.
We ranked fifth at the 2021 Sunday Times Top 100 Companies Awards, representing admirable progress over the previous two years, from 13 in 2020 and up 32 places from 37 in 2019.
We ranked in the top 10 in the sub-sector basic resources in the FTSE Russell ESG rating.
We claimed second place for the Best Sustainability Reporting Award in the metals and mining category at the 2022 ESG Reporting Awards.
We are featured in the latest top 100 Vigeo Eiris ranking of the best-emerging market performers.
We sustained our A rating and improved the environmental category in the ESG ratings by Morgan Stanley Capital International (MSCI).
We received a Transition Pathway Initiative (TPI) ranking of 4/4. This high score reflects our commitment to managing our greenhouse gas emissions and shows that we are in an excellent position to benefit from opportunities presented by the low-carbon transition.
We received a level B score in the management band. This is the same as the African regional average of B, and higher than the coal mining sector average of C. Our score shows that we are taking coordinated action on climate issues.
We won an award for being a fatality-free business (with 10,000 or more employees) at the COALSAFE 2022 conference held by the South African Colliery Managers’ Association.
We are committed to promoting workplace equality. We are proud to announce that, in recognition of these efforts, we were included in the Bloomberg 2022 Gender Equity Index.