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OUR ALIGNMENT WITH THE SUSTAINABLE DEVELOPMENT GOALS

Exxaro voluntarily endorses the United Nations Sustainable Development Goals (UN SDGs), benchmarking our performance against global best practice, to leave a lasting positive impact. Further, we participate in South Africa’s National Business Initiative (NBI) to align the SDGs with the country’s National Development Plan (NDP) 2030.

Our intent to power possibilities encourages us to support the SDGs listed below for the following reasons:

• Our purpose statement, to power better lives in Africa and beyond, acknowledges the challenges that prevail on our continent and the role of Exxaro to overcome these challenges
• Our strategic objectives, within the context of a just transition, aim to support the purpose through our vision of “powering a clean world”

INTEGRATED THINKING AND OUR SIX CAPITALS

Exxaro believes in holistic and sustainable value creation, enabled through carefully considering the relationship between the capitals we affect. We integrate the six capitals into our business model and strategy, and continuously strive to positively contribute to and negate any adverse impacts on these capitals. We do this to ensure our sustained success and foster a more sustainable operating environment for South Africa, Africa and beyond. We also aim to create and preserve value for our stakeholders and society at large, and to prevent the erosion thereof. In this report, we share our progress in this regard and demonstrate our future prospects. The six capitals we use and affect are:

OUR ESG FOCUS

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 resources company metrics, in terms of the FTSE Russell index. Everything we do today is geared towards ensuring a safer and more productive tomorrow. Our sustainability is founded on creative, mutually constructive relationships and values we share with our stakeholders. We conduct our business activities in a way that creates success for Exxaro and for society. From how we mine to what we mine, we are stewarding our natural assets and social capital to uplift our communities.

With a proven track record confirming that we deliver solid returns, Exxaro continues to present an outstanding investment opportunity. Our exemplary ESG performance over the past year 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 improve our reporting to our stakeholders.

REPORTING SUITE

For completeness, this report should be read in conjunction with Exxaro’s suite of reports (shown below) for the period from 1 January 2020 to 31 December 2020 (the 2020 financial year) available on our website under the investors tab.

Our reports cover financial and non-financial information about the group’s activities in South Africa, Europe, the United States of America (USA) and Australia. We include limited information about operations where we do not have management control but hold a significant interest. On 31 December 2020, these investments mainly include an equity interest in Sishen Iron Ore Company Proprietary Limited (SIOC), an investment in Mafube Coal Proprietary Limited (Mafube) (a 50% joint venture with Anglo South Africa Capital Proprietary Limited), an interest in Black Mountain Proprietary Limited (Black Mountain) as well as an equity interest in Tronox SA (both South African-based operations).

Exxaro also has other business interest in Switzerland (marketing of coal), United Kingdom (equity interest in Insect Technology Group Holdings UK Limited), Israel (LightApp Technologies Limited), Australia (Moranbah joint operation with Anglo Coal (Grosvenor) Proprietary Limited) as well as the United States of America (an equity interest in Tronox Holdings plc).

Reporting frameworks

The content of this report is guided by:

• Our materiality determination process ( Our material matters)
• Companies Act, No 71 of 2008, as amended (Companies Act)
• International Financial Reporting Standards (IFRS)
• JSE Limited (JSE) Listings Requirements
• Department of Trade, Industry and Competition's (dtic) broad-based black economic empowerment (B-BBEE) codes of good practice
• Broad-based Socio-economic Empowerment Charter for the Mining and Minerals Industry 2018 (Mining Charter III)
• International Integrated Reporting Council's (IIRC) Integrated Reporting <IR> Framework (<IR> Framework)
• United Nations Global Compact (UNGC)
• Global Reporting Initiative (GRI) standards (elements of the ESG report are cross-referenced for a broader perspective)
• King IV Report on Corporate Governance for South Africa, 2016 (King IV^TM)*

* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.