Black empowered, diversified mining and renewable energy solutions company, Exxaro Resources is pleased to announce to its stakeholders that it has once again set the benchmark for its industry in environmental, social and governance (ESG) performance according to the FTSE Russell ESG Index Ratings for the 6-month period to 30 June 2022.
The company received a commendable rating - outperforming the basic material industry average and coal industry average. We ranked in the top 10 in the subsector basic resources.
According to the FTSE Russell ESG Index Ratings, its data model allows investors to understand a company’s exposure to, and management of ESG issues in multiple dimensions. The ESG Ratings are comprised of an overall rating that cascades into underlying Pillar and Theme Exposures and Scores - built on over 300 individual indicator assessments that are applied to each company’s unique circumstances.
Exxaro’s Group Manager: Integrated Report and ESG Performance, Malusi Buthelezi expressed how this achievement is significant to the business, given the socio-political context and commodity market conditions.
“The FTSE Russell ESG Index rating reflects our efficient and strategic response to ESG challenges and opportunities which set an important context for investing - our index score continues to improve with increasing effort and disclosure. We remain ranked in the top quartile of global performers in the Basic Resources subsector. Our steady improvement since 2016 is our commitment to giving confidence to shareholders and stakeholders of the sustainability of the business and value creation”.
Exxaro has shown extraordinary commitment to respond to the risks and opportunities presented by climate change through climate change resilience strategies – which include actions to reduce environmental impact and contribute to a cleaner world and reduce carbon emissions.
“Our carbon intensity has decreased by 0.7%, mainly as a result of energy efficiency initiatives designed to reduce diesel consumption at our flagship Grootegeluk mine. And water intensity reduced by 18.3% compared with previous 12 months ending June 2021. This was due to efficiency measures at all our operations,” adds Buthelezi.
In terms of social performance in the first half of 2022 – the group achieved a safety record performance of 5-year 5 months fatality free since March 2017 as at 2 August 2022 and coal business loss time injury frequency rate of 0.04, lower than the target of 0.06.
Furthermore, Exxaro had a positive impact on communities in operational areas for the period under review through a R699 million social investment towards ESD, procurement and social and labour plans – benefitting over 53 000 community members including 272 households, school children, women and youth entrepreneurs.
“Our social investments reinforce our objective of being a catalyst for economic growth and environmental stewardship,” says Buthelezi.
On the governance front, Exxaro has over the years delivered on solid leadership credentials, gender diversity at senior management level and diverse skills to achieve the company’s objectives – which includes the appointment of the company’s first female CEO Dr Nombasa Tsengwa.
“We continue to benchmark our ESG performance against our peers who exhibit the global best practice expected by responsible investors and we are proud to be among the best companies,” concludes Buthelezi.