Integrated report 2020
Exxaro report selector 2020
Exxaro Resources Limited
ESG report 2020
REPORT SELECTOR
INDEPENDENT AUDITOR’S REASONABLE ASSURANCE REPORT ON THE SELECTED SUSTAINABILITY INFORMATION IN EXXARO RESOURCES LIMITED’S ESG REPORT
We have undertaken a reasonable assurance engagement in respect of the selected sustainability information, as described below, and presented in the 2020 ESG Report of Exxaro Resources Limited (the 'Company', " Exxaro" or " you") for the year ended 31 December 2020 (the Report). This engagement was conducted by a multidisciplinary team including health, safety, social, environmental and assurance specialists with relevant experience in sustainability reporting.
We have been engaged to provide a reasonable assurance opinion in our report on the following selected sustainability information. The selected sustainability information described below have been prepared in accordance with the Company's reporting criteria that accompanies the sustainability information on the relevant pages of the Report (the accompanying Company reporting criteria).
| Selected Sustainability Information | Unit of measurement | Boundary | Page number | |||
| Number of fatalities | Number | Exxaro Group | 21 | |||
| Number of lost time injuries (employees and contractors) | Number | Exxaro Group | 21 | |||
| Lost Time Injury Frequency Rate (LTIFR) (employees and contractors) | Rate | Exxaro Group | 21 | |||
| Occupational health incident frequency rate (OHIFR) | Rate | Exxaro Group | 21 | |||
| Number of accepted occupational health cases | Number | Exxaro Group | 70 | |||
| Carbon Intensity - Scope 1 | kt CO2e / TTM | Exxaro Group | 22 | |||
| Carbon Intensity - Scope 2 | kt CO2e / TTM | Exxaro Group | 22 | |||
| Carbon footprint - Scope 1 | kt CO2e | Exxaro Group | 46 | |||
| Carbon footprint - Scope 2 | kt CO2e | Exxaro Group | 46 | |||
| Carbon footprint - Scope 3 | kt CO2e | Exxaro Group | 46 | |||
| Number of level 2 and 3 environmental incidents | Number | Exxaro Group | 22 | |||
| Water intensity - total tonnage mined | Water withdrawn/ROM tonnes | Exxaro Group | 22 | |||
| Skills provision (% of appointment from within) | % | Exxaro Group | 21 | |||
| Scarcity skills retention (% turnover) | % | Exxaro Group | 21 | |||
| Number of stoppage directives (includes section 54 ito MHSA) | Number | Exxaro Group | 22 | |||
| Number of stoppage directives (includes directives ito NWA, NEMA and MPRDA) | Number | Exxaro Group | 22 | |||
| Talent bench - % of clusters (DL to DU) that have at least two EE candidates in the 3A/3B/2A category | % | Exxaro Group | 71 | |||
| Talent bench - % of clusters (EL and above) that have at least two EE candidates in the 3A/3B/2A category | % | Exxaro Group | 71 |
We refer to this information as the selected sustainability information for Reasonable Assurance.
The Directors are responsible for the selection, preparation and presentation of the selected sustainability information in accordance with the accompanying reporting criteria as set out on Our responsibility of the Report (the "Reporting Criteria").
This responsibility includes:
The Directors are also responsible for determining the appropriateness of the measurement and reporting criteria in view of the intended users of the selected sustainability information and for ensuring that those criteria are publicly available to the Report users.
Non-financial performance information is subject to more inherent limitations than financial information, given the characteristics of the subject matter and the methods used for determining, calculating, sampling and estimating such information. The absence of a significant body of established practices on which to draw allows for the selection of different but acceptable measurement techniques which can result in materially different measurements and can impact comparability. Qualitative interpretations of relevance, materiality and the accuracy of data are subject to individual assumptions and judgements. The precision of different measurement techniques may also vary. Furthermore, the nature and methods used to determine such information, as well as the measurement criteria and the precision thereof, may change over time.
In particular, where the information relies on carbon and other emissions conversion factors derived by independent third parties, or internal laboratory results, our assurance work will not include examination of the derivation of those factors and other third party or laboratory information.
We have complied with the independence and other ethical requirements of the Code of Professional Conduct for Registered Auditors, issued by the Independent Regulatory Board for Auditors' (IRBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (including International Independence Standards).
The firm applies the International Standard on Quality Control 1, and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.
Our responsibility is to express a reasonable assurance opinion on the selected sustainability information based on the procedures we have performed and the evidence we have obtained. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information (ISAE 3000 (Revised)), and, in respect of greenhouse gas emissions, International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements (ISAE 3410), issued by the International Auditing and Assurance Standards Board. These Standards require that we plan and perform our engagement to obtain reasonable assurance about whether the selected sustainability information are free from material misstatement.
A reasonable assurance engagement in accordance with ISAE 3000 (Revised) ,and ISAE 3410, involves performing procedures to obtain evidence about the measurement of the selected sustainability information and related disclosures in the Report. The nature, timing and extent of procedures selected depend on the auditor's professional judgement, including the assessment of the risks of material misstatement of the selected sustainability information, whether due to fraud or error.
In making those risk assessments we have considered internal control relevant to the Company's preparation of the selected sustainability information. A reasonable assurance engagement also includes:
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In our opinion and subject to the inherent limitations outlined elsewhere in this report, the selected sustainability information as set out in the Subject Matter paragraph above for the year ended 31 December 2020 are prepared, in all material respects, in accordance with the reporting criteria.
Our report includes the provision of reasonable assurance on the following indicators:
We were previously not required to provide assurance on this selected sustainability information.
The maintenance and integrity of Exxaro's website is the responsibility of Exxaro's directors. Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the Report or our independent assurance report that may have occurred since the initial date of presentation on Exxaro's website.
Our work has been undertaken to enable us to express a reasonable assurance opinion on the selected sustainability information to the directors of the Company in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than the Company, for our work, for this report, or for the conclusion we have reached.
PricewaterhouseCoopers Inc.
Director: Jayne Mammatt
Registered Auditor
Johannesburg
19 April 2021
KPI/Subject Matter |
Definition/Criteria |
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Number of Fatalities |
A fatality includes all incidents that resulted in a fatality. |
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Number of Lost time injuries (employees and contractors) |
Lost time injury (LTI) occurs when a person is injured in the execution of this/her duties and as a result of this injury is unable to perform his/her regular duties for one full shift or more on the day following the day on which the injury was incurred, whether a scheduled work day or not. The following notes apply:
Irrespective of whether business units record RWCs or not, the calculation of the LTIFR will include both LTI's and RWCs and the sum of lost days and restricted days. The employee lost time injury frequency rate shall be calculated whenever the lost time injury is reported and communicated. |
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Lost Time Injury Frequency Rate (LTIFR) - Employees and Contractors |
Lost time injury (LTI) occurs when a person is injured in the execution of this/her duties and as a result of this injury is unable to perform his/her regular duties for one full shift or more on the day following the day on which the injury was incurred, whether a scheduled work day or not. The following notes apply:
Irrespective of whether business units record RWCs or not, the calculation of the LTIFR will include both LTI's and RWCs and the sum of lost days and restricted days. The employee lost time injury frequency rate shall be calculated whenever the lost time injury is reported and communicated. It is calculated as follows:
Total man-hours should include visitor Hours |
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Occupational health incident rate
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An occurrence of a medically diagnosed occupational disease by the Occupational Medical Practitioner which is reported to MBOD, DMR and/ or RMA during the reporting period. However, no immediate decision for compensation is made until pending further investigations results.
Occupational diseases are monitored and reported for employees and contractors. The Occupational Health Incident Rate is calculated as follows:
Total man-hours worked include hours for employees, contractors and visitors. |
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Number of accepted cases of occupational diseases |
An accepted case is an approved case for compensation by the MBOD/RMA. An approved certificate is sent to the Occupational Medical Practitioner. These Occupational Diseases are:
|
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Carbon intensity (Scope 1) - (kt CO2e/TTM) |
Total emissions from Scope 1 Total Tonnes Mined in (KtCO2e per Kton) |
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Carbon intensity (scope 2) - (kt CO2e/TTM) |
Total emissions from Scope 2 Total Tonnes Mined in (KtCO2e per Kton) |
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Carbon footprint - Scope 1 |
Total emissions from Exxaro operations these include total litres of diesel oil used for primary production activities, fugitive emissions from mining activities and limestone emissions created through mining activities converted to Kilo-tonnes CO2e. The above are all combined and the total Scope 1 calculation is performed at head office. |
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Carbon footprint - Scope 2 |
Total emissions from the consumption of purchased electricity converted to Kilo-tonnes CO2e |
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Number of Level 2 and 3 environmental incidents |
Level 1 - An internally reportable environmental incident with reversible on-site impacts, which will involve immediate clean-up [and/or a negative impact costing < R100 000 to remediate] Level 2 - An internally reportable environmental incident with reversible on-site and immediate surrounding impacts, which will involve longer than 48hrs clean-up activities [and/or a negative impact costing R100 000 - R 500 000 to remediate] Level 3 - An internally and/or externally reportable environmental incident with irreversible on-site, immediate and remote areas impacts, which will involve long-term clean-up activities [and/or a negative impact costing > R 500 000 worth of damage.] The Rand values used above are used as a guide to support the classification of the incidents. It may not be necessary in all cases to use this amount to support the classification. |
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Water intensity - ROM (tons) |
Water intensity refers to the total water withdrawals (excluding supply to third party, game, farmers) from a resource (not recycled/re-claimed water) divided by ROM, and is expressed as:
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Skills provision (% of appointment from within) |
External is: All new engagements and re-engagements Internal is: Temporary to Permanent, Learnership to Permanent, Transfer to Artisan and Non- permanent employees appointed permanent. Transfer within same BU, Transfer between BU, Transfer between Company, Promotion within same BU, Promotion between Company. The Percentage is calculated as Number of external or internal appointments/Total number of appointments.
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Scarcity skills retention (% turnover) |
The Turnover % is calculated using the movement list and specific relation to employee separations over a 12-month period, this excludes all Retrenchments including Voluntary Severance Packages divided by the average headcount over 12 months. |
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Talent bench - % of clusters (DL to DU) that have at least two employment equity candidates in the 3A/3B/2A category |
Measures the percentage of employment equity employees on D band that are immediately ready or medium term ready for the next higher level - against the target of 15% Count number of D band clusters that have at least 2 Black Individuals with 3A, 3B and 2A rating on immediately ready and medium-term cluster Count total number of clusters on specific D Band level Divide number of clusters with individuals on 3A,3B and 2A by total number of clusters |
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Talent bench - % of clusters (EL and above) that have at least two employment equity candidates in the 3A/3B/2A category |
Measures the percentage of employment equity employees on E band that are immediately ready or medium term ready for the next higher level - against the target of 10% Count number of E band clusters that have at least 2 Black candidates with 3A, 3B and 2A rating on immediately ready and medium-term cluster Count total number of clusters on specific E Band level Divide number of clusters with individuals on 3A,3B and 2A by total number of clusters |
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Number of stoppage directives (includes section 54 ito MHSA) |
Stoppage (directive) Instruction A stoppage instruction is an instruction issued by an inspector from the Department of Mineral Resources or Department of Labour in terms of Section 54.(a)&(b) of the Mine Health and Safety Act, Act 29 of 1996 or Section 30.(1) - (5) of the Occupational Health and Safety Act, Act 85 of 1993 for occurrences, practices or conditions that, in the opinion of the inspector, pose a threat to the safety or health of employees, to cease operations at the mine or part thereof with immediate effect. |
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Number of stoppage directives (includes directives ito NWA, NEMA and MPRDA) |
Stoppage (directive) Instruction A right/authorisation/permission/approval/licence under which has been placed under notice as per a) sections 93 and/or 47 of MPRDA; section 54 of NWA; and Section 31L of NEMA, and/or Regulation 38 of the NEMA EIA Regs. |