As a child, Khumalo’s parents had high hopes that she would make them proud as a medical doctor. But her mind became preoccupied with stories of gigantic oil spills that pollute coastlines and suffocate sea life, and the deforestation of the Amazon.
“They want to know how we plan to manage our risk and mitigate and adapt our business exposure to climate change while harnessing the opportunities presented by the transition to low-carbon economy,” Khumalo says. “It’s critical to mention that we see ourselves as part of the solution – from a national and global perspective.”
In March 2020, the company published its climate change position statement, stating that it would not seek further growth opportunities in thermal coal. But in the immediate term, its revenue will be largely generated from its remaining coal operations as it continues to supply Eskom in terms of existing coal supply agreements. “We must provide clean coal and avoid stranded assets while we diversify our portfolio.
In Lephalale in the Waterberg Exxaro is involved in a number of projects to reskill, upskill and redeploy employees. These involve solar programmes to make houses “green”, forestry and reforestation initiatives, game farming and land management initiatives and agri-initiatives. “Everything is about stakeholders,” says Khumalo. “A just transition must involve society as a whole. It cannot discriminate against certain sectors in society, especially the economically disadvantaged – we cannot increase their burden, which is disproportionate.”