This is what drives our ambition to provide resources (beyond just commodities) that are critical in a low-carbon world.
Our Sustainable Growth Impact Strategy enables us to deliver on this vision and our success lies in the strength of organisations’ our culture and values. Through our strategy, we aim to transform Exxaro in a systematic and integrated manner into a diversified company that will transition from a coal base to a minerals and renewable energy solutions business that will thrive in a low-carbon future.
Guided by our purpose to Power Better Lives in Africa and Beyond, we understand that we cannot grow sustainably without deliberately creating a positive impact in the environment and communities we serve. We remain committed to responsibly maximising the value of our coal assets whilst we play an active role in creating a future which enables our vision – “Resources Powering a Cleaner World.”
In this strategy-focused chapter, we outline how our business leadership has transitioned as well as our strategy. As we commence the implementation of the strategy, we outline the drivers for our strategic direction, how we will measure our success into the future as well as reflecting on our past strategic performance.
Our coal assets do not belong to us; we are stewards for responsibly maximising their value. We have a responsibility to use the coal assets to build a sustainable business for our investors, employees, and communities and to ensure a sustainable future for the planet.
As an operator of a carbon-intensive coal asset, Exxaro has several options available to it considering a carbon-constrained future: Divest, Close or Manage.
Divest solves the problem of Exxaro’s emissions, but doesn’t solve the problem for the climate.
Close solves the emissions problem, but doesn’t solve the challenge of abruptly disrupting the lives of thousands of people in local communities where coal provides livelihoods.
Manage means responsibly optimising the coal business, repositioning it to capture transition opportunities and prioritising just transition for workers and communities.
Our strategic objectives promote business resilience in the short term and portfolio robustness in the medium to long term.
Responding to the growing threat of the low-carbon transition by building climate resilience.
Use our established ESG performance platform to be a catalyst for sustainable economic and environmental development in our ecosystem.
Continue to contribute to energy security in South Africa and beyond.
Decarbonising will further strengthen our existing competitive advantage and extend the horizon of our coal business.
Own one of South Africa’s leading managers of renewable assets and one of its largest wind asset bases.
The strategy is underpinned by four interdependent pillars: M&A, UG, DG, and Services.
Long-term stability to Exxaro’s cashflow.
Diversify earnings and contribute to Exxaro’s growth.
Clearly-defined investment criteria that looks to ensure we invest in the right opportunities within geographies we can execute in.
Balance sheet and capabilities provide a competitive advantage.
Commitment to invest in and support the resilience of society in the just transition.
Remain a responsible custodian of the assets entrusted to us, as evidenced in our ESG performance.
Balancing acceptable value distribution to shareholders with investment for the long term for all stakeholders.