Forces shaping our strategy
Our vision is to make a positive impact on the world through our Sustaibable Growth and Impact Strategy. This goal is being realised by fulfilling basic and primary needs – the things that keep us functioning as a society. Through our growth and innovation, we are working towards becoming a source of endless possibilities.
We know none of this is possible without our people. Their imagination and passion are what constantly nourishes our journey to change the world for the better. We encourage collaboration, commitment, and creativity in an environment that promotes safety, health, and welfare – and where respect and equality are prerequisites. We know that our highly qualified workforce will become the industry leaders of tomorrow.
We concluded 2020 with a new strategy, starting the new decade with a firm foundation for our journey towards a just transition. 2020 marked a milestone in the conclusion and achievement of our prior strategic objectives, namely portfolio optimisation, ensuring a sustainable business, delivering operational excellence and product capital optimisation.
Our sustainable growth and impact strategy will transform Exxaro in a systematic and integrated manner into a diversified company that will transition from a coal base to a renewable energy and minerals business that will thrive in a low-carbon future.
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.
