EXXARO: Sustainable Impact at the Core of Its Purpose

For more than 15 years Exxaro has stood as one of South Africa’s largest and foremost black-empowered and diversified mining companies, developing along the way a global asset portfolio comprising coal operations and investments in iron ore, renewable energy such as wind and residual base metals. With a vision as simple as it is invaluable, Exxaro exists to make a positive impact on the world, powering better lives in Africa and beyond by responsibly investing in commodities that will ultimately sustain life on the continent.

“Everything we do today is geared towards ensuring a safer and more productive tomorrow,” is how the company condenses down such a formidable purpose for who success means nothing if it is not equally beneficial to society as a whole. “This goal is being realised by fulfilling basic and primary needs, the things that keep us functioning as a society, through energy, water, and food. We manage to do all this through our commodities and investments in renewable energy, which we are using to fuel our future.

“Through our growth and innovation, we are working towards becoming an unstoppable source of endless possibilities.”

JUST TRANSITION

It was on entering the final phase of its previous strategy, successfully concluded in 2020, that Exxaro reflected on every aspect of its purpose, prospects, and social obligations in such a drastically changing operating context in order to sculpt this future path. “As a major coal supplier,” the company outlines, “we understand the importance of a just transition to a low-carbon world, and our journey includes incorporating small-scale renewable energy solutions into our existing portfolio to reach this milestone by 2050.”

The implementation of this strategy is made all the more urgent by its recognition of this being a rapidly narrowing opportunity, exacerbated by the growing external risk as the world accelerates to a net-zero carbon economy. “We have long understood the need to balance the country’s socio-economic development, which relies on coal generated power, with the need to support the transition towards a low-carbon economy to reduce carbon emissions and the harmful impacts of climate change, thus contributing to humanity’s sustainability.

“These are major changes that will raise future challenges and increase external risks for those who do not adapt, but will present significant opportunities for those who are able to evolve.” This evolution has been both pronounced and sustained in Exxaro’s case, as it seeks to, “build on an existing successful platform leveraging our skills and differentiation with a long-term vision to develop a sustainable, growth-orientated, value-driven company, a leading international renewable solutions provider by the end of the decade.”

Exxaro’s renewable energy journey commenced back in 2009 when it initiated the development of a wind project in South Africa’s Eastern Cape province, culminating in the establishment of Cennergi alongside Tata Power in 2012.

Cennergi’s aim is to be a leading international renewable energy solutions business for utilities and private clients in South Africa, while diversifying into other markets, and Exxaro acquired the company outright in 2020 in order to propel its diversification into renewable energy. In June last year Cennergi welcomed the registration of its 80MW Lephalale Solar Project (LSP) by the National Energy Regulator of South Africa (NERSA) and the Regulator Executive Committee, the first phase of the decarbonisation of Exxaro’s flagship Grootegeluk mine at Lephalale in Limpopo province. 

“The team worked incredibly hard to ensure LSP was one of the first large renewable energy projects to receive registration through the streamlined NERSA process in a record time of 47 days,” beamed MD of Energy at Exxaro & Cennergi, Roland Tatnall, at this milestone in the bid for carbon neutrality by the midpoint of the century. “Following the announcement of our renewable energy strategy to the market in September 2021, we have developed a significant pipeline of multi-technology – wind, solar and storage – solutions that will provide decarbonisation, energy security and cost reduction benefits to Exxaro and other private customers.

“We are advancing a comprehensive renewable energy solution for Exxaro’s presence in Mpumalanga, which we hope will provide a blueprint for the just energy transition in the province.”

TOP POSITIONS

First receiving the award in 2014, and again in 2021 and 2022, now for the fourth time Exxaro has been honoured by the international Top Employers Institute for its Human Resources (HR) policies and practices and officially designated an elite company to work for. “To be recognised for the fourth time as a top employer on the global stage is a great honour that we do not take lightly,” summated Hemuna Bhola, Acting Executive Head HR at Exxaro.

“It is through the hard work of everyone at Exxaro that we always consider our people as our greatest asset. Investing in our workforce and company culture remains a top priority. We will continue to serve and deliver our best work to our stakeholders while developing expert talent. Maintaining high standards in terms of employee satisfaction and retention are the main reasons for Exxaro’s continued success.”

Again, decorated for the fourth time, but this time consecutively, Exxaro Resources was also able to proudly announce its inclusion in the 2023 Bloomberg Gender Equity Initiative (GEI), a testament to a resolute commitment to gender equality and inclusion. Various global experts assert the Bloomberg social survey to be evaluated on the achievement or adoption of best-in-class statistics and policies, due to a standardised global reporting method to acquire comprehensive workplace gender data.

“We aim to inspire beyond our commercial output,” assessed Bhola of this grading which could inspire others in the mining and energy sector to strive for equity for all genders. “Our goal is to have a gender balanced workforce and to achieve demographic parity.

“Creating a safe, diverse and equitable working environment is of paramount importance for our business,” added Dr Nombasa Tsengwa, Exxaro Resources CEO. “It is encouraging to know that we maintain such a high gender equity score, especially as a company in a traditionally male-dominated industry.”

With so much attention fixed elsewhere on the looming 2050 deadline, there can be a temptation to neglect the here and now; not so at Exxaro, where today’s success is quickly followed by thoughts of how to better it tomorrow. “The future is built on what we do in the present,” the company sums up as it carefully balances South Africa’s economic development needs, ecosystem protection and social adaptive capacity in the current transition.

“We are actively contributing to a cleaner world and a future of powering possibility, driven by our vision of resources powering a clean world and better lives for future generations.”