Integrated report 2020
Exxaro report selector 2020
Exxaro Resources Limited
ESG report 2020
REPORT SELECTOR
"Good corporate governance is about 'intellectual honesty' and not just sticking to rules and regulations... capital flows towards companies that practise this type of good governance."
– Mervyn King (chairperson of the King Committee on Corporate Governance in South Africa)
The board of directors (the board) drives the strategy, sets performance and culture expectations as well as the governance framework for Exxaro Resources Limited (Exxaro or the company), including its subsidiary companies, trusts and joint ventures (collectively referred to as Exxaro or the group).
In 2020, the board approved that the core businesses, energy and minerals, are empowered to exercise decision making and use their resources to thrive in an increasingly dynamic market and industry sector. The group is being designed to support this, with governance structures tailored to the level of maturity of core businesses, and to allow more decentralised decision making where empowered accountability can be exercised.
The board remains the focal point and custodian of corporate governance for the group and is fully committed to good corporate governance. The board regards good corporate governance as fundamentally important to create value, applying the following principles and governance outcomes in its own ethical and effective leadership:
Our board assumes ultimate accountability and responsibility for the company's performance and affairs. In so doing, it effectively represents and promotes its legitimate interests. As a responsible corporate citizen, it also considers the legitimate interests and expectations of its material stakeholders to make a positive contribution to society.
As King IV recommends "apply and explain" to support a claim that good governance is practised, the following pages set out each principle with an explanation of steps taken as well as policies and processes used by Exxaro.