Approach to sustainable development

Disclosure on management approach

Sustainability is generally defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” For Exxaro this means ensuring we do not undermine the capacity of the natural environment to provide services, and that we do not contribute to any instability in the communities in which we operate.  

It also means balancing three aspects of business - economic, environmental and social - and integrating the requirements of each of these into the group’s planning, decision-making and operations.  

In line with the World Business Council for Sustainable Development and other global benchmarks, sustainability is a critical thread woven through our broader strategy and the different areas of our business. Spanning corporate governance, ethics, workplace issues, intellectual property and stakeholder relations, the key benefits include:

• Eco-efficiency = reduced costs, costs avoided (eg through new technology) and optimal investment strategies
• Quality management = better risk management, greater responsiveness in volatile markets, more motivated and committed staff, and enhanced intellectual capital
• Licence to operate = lower costs of compliance, improved reputation with key stakeholders and greater influence with regulators
• Market advance = stronger brands, greater customer loyalty, lower cost of capital, new products and processes, attracting (and retaining) the right talent
• Sustainable profits = new business/increased market share and enhanced shareholder value.