Integrated report 2020
Exxaro report selector 2020
Exxaro Resources Limited
Integrated report 2020
REPORT SELECTOR
We have moved beyond compliance towards outcomes that maximise the social value we create. We support the just transition to a lowcarbon future by delivering interventions with meaningful impact.
Our 2020 materiality determination process identified certain material matters relevant to our social licence to operate.
Financial
Manufactured
Social and relationship
Natural
Human
"Impact at scale" drives our approach to community development. We introduced this approach in 2020 and will reinforce it into the future.
Our community development initiatives are successful but not far-reaching as they are constrained by localised impact and lack of local government capacity.
The socio-economic and environmental challenges are exacerbated by rising unemployment (aggravated by COVID-19) and poverty. Exxaro and government cannot resolve these challenges on their own.
Our impact at scale approach recognises the opportunity to reference legislative requirements such as the Broad-based Mining Charter III and the Department of Trade, Industry and Competition codes of good practice as the foundation for our work with government. We also see opportunity to lead better and bigger development initiatives that will arrest and reverse the scourge on our communities.
These initiatives are implemented through various vehicles:
Our impact at scale approach includes:
Please refer to our ESG report for more information.
The year 2020 gave Exxaro an opportunity to move aggressively towards an outcomes-based approach with the objective of maximising the social value created by our interventions. The outcomes approach places community beneficiaries’ interests first and at the core of the interventions we implement.
Our outcomes are shared between Exxaro and communities, leveraging the capabilities of different partners and stakeholder perspectives. Our future outlook is determined by Exxaro’s ability to deliver impact at scale in communities. This strengthens the company on its transition to a lower-carbon world, and reinforces our purpose to power better lives in Africa and beyond.
Collaborative response to the COVID-19
pandemicThe COVID-19 pandemic demanded collaborative approaches to ensure the safety and livelihoods of employees and communities in the face of the devastating economic impact. The course of the pandemic could aggravate the conditions of vulnerable communities that are already impacted by climate change effects.
Although the delivery of our SLPs was disrupted by the national lockdown during the first wave of COVID-19 infections, significant expenditure in response to the COVID-19 amounted to R51.7 million, including R20 million donated to the Solidarity Fund, to support the country’s healthcare system, humanitarian efforts and campaign for behaviour change. Through our partnerships, we identified urgent areas of collaboration such as improving water and sanitation infrastructure, and procuring PPE for local and provincial healthcare facilities, police stations and schools while supporting indigent families with food parcels.
The challenges presented by the COVID-19 required consolidation of our efforts in previous years. Impact at scale was an underlying driver of our approach to community development in 2020. This gave rise to collaboration with diverse partners such as the Minerals Council South Africa, government departments, non-governmental organisations, contractors, the National Business Initiative and the municipal infrastructure agency (MISA). We leveraged each one’s strengths and capabilities for impact beyond the scale of individual participants and locations.
Further, to ensure that the enterprises supported by our ESD programme survive the operational challenges brought about by COVID-19, 15 beneficiaries were granted loan repayment holidays (ranging from two to six months), totalling R18.1 million to continue employing 690 people. In addition, three companies with 272 employees received funding of R4.3 million. In total, 962 jobs were saved and the enterprises continue to operate successfully.
Cennergi donation of PPE to Adelaide hospital
Exxaro also invested R7 million in establishing two COVID-19 testing laboratories in Lephalale (Limpopo), and Kriel (Mpumalanga). The facilities support local public health departments.
With the outbreak of the COVID-19 pandemic, COVID-19 was highly stigmatised in our communities, which affected our employees, creating barriers to integration after recovery. This inspired our educational awareness and anti-stigma campaigns within the company and host communities in the Limpopo and Mpumalanga priorities.
Our investment in free community WiFi for Siyathuthuka township in Belfast, Mpumalanga, ensured a seamless information flow. This project will extend to other host communities.
For more information on our performance against our SLP as well as our ESD initiatives, please refer to our ESG report.
