DISCOVER A SUSTAINABLE LOW-CARDON FUTURE

DISCOVER A SUSTAINABLE LOW-CARDON FUTURE

Case Studies

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As countries worldwide went into lockdown, a noticeable difference in our environment began to emerge. After many years, the Himalayas mountain range has become visible from kilometres away due to a reduction in air pollution. This has allowed us to look at what the future could hold if we all work towards a more sustainable future. While we have reached a good place in reducing our carbon footprint, this needs to be taken further to support climate action. We need to continue building on our current progress to support the transition into a low-carbon future while not losing momentum. With many people being forced to work from home and practise social distancing, our carbon emissions have dropped drastically, but it has also put a lot more strain on our power supply. Implementing a strategy that will meet the demands of an everexpanding population while remaining conscious to climate change and the risk that it continues to pose is, therefore, of the utmost importance. The reality is that we cannot separate sustainable energy security and climate change. The two are interlinked and reliant on one another. The greenhouse gas emissions released through fossil-fuel-generated power is one of the biggest contributors to increased global temperatures. Unfortunately, a stable power supply is essential in allowing an economy to function and thrive. We, therefore, need a reliable and sustainable solution to provide power without harming our environment even further.
ExxaroOur Climate Change Response Strategy is integral to our Sustainable Growth and Impact strategy and objectives as we understand that these elements of our business and operating environment are deeply connected. Our strategic response is also guided by our purpose of powering better lives in Africa and beyond. We believe our greatest opportunity is to help steer South Africa towards a sustainable future through undiluted focus on low-carbon minerals and energy. Our existing coal business portfolio will continue to remain relevant and central to our transition journey. South African government has outlined the energy transition of the country in the Integrated Resource Plan 2030. As the largest supplier of coal to Eskom we have the national responsibility to ensure that we continue to provide quality coal to Eskom during the energy transition process contained in the IRP-2030. We also recognise the risk of stranded assets due to transitional and physical risks of climate change that may make it difficult for our business to operate. To mitigate this risk we have implemented the Early value strategy that will optimise our coal resources to focus on realising maximum value in the shortest period. Climate change does not only present our business with risks, we are leveraging the opportunities presented by the transition to low carbon world. We are committed to meeting our target of being carbon neutral by 2050 by consistently reducing our direct emissions. We also have a responsibility to partner with our suppliers and customers in an effort to reduce our indirect emissions. Our metrics and targets will ensure we have visibility in our progress towards achieving this target and making our business climate-proof.

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