SUSTAINABILITY REPORT 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Navigating our report 1 Our Reporting Suite and Approach  Statement by the Chairman of the SES Committee Statement by the Group Chief Executive The year in review 02 04 05 06 4 Our Climate Change Performance33 Eskom at COP29 Road to COP30: a defining moment for the global climate trajectory GHG emissions reporting and disclosures 35 35 35 6 Our Social Footprint Key aspects of our socioeconomic role Our human resource highlights Our people 43 43 44 44 Our ESG approach 07 Eskom’s carbon footprint 36 Employment and benefits 44 Introduction 10 Risks and opportunities for mitigation 36 Training and skills development 44 Adaptating to climate change 37 Employment equity 46 2 Our future focus for climate change 39 Health and wellness 46 5 Organisational effectiveness 48 Eskom human capital survey 49 Eskom employee value proposition 50 Governance  13 Eskom employee engagement programme 50 Just Energy Transition 40 Occupational health and safety 51 Legal separation 14 Our communities 53 Ethics 15 Funding for JET 41 Electrification 53 Crime, fraud and corruption 16 Komati welding facility 42 Eskom development foundation impact 53 Cable, infrastructure, asset theft and vandalism 16 Additional JET initiatives 42 Socioeconomic development 55 Coal theft and fraud 17 Enterprise and supplier development 55 Public finance management act (PFMA) compliance 17 Coal sales – contribution to socioeconomic development 57 Stakeholder management 18 Electricity sales and revenue 57 Integrated Risk Management 20 Managing municipal debt 57 Please use the tabs at the top of this report as well as the buttons 7 Enterprise resilience 22 to navigate digitally Quality management 24 3 Return to contents page Previous page Next page ABC Abbreviations Research and Development 58 Environmental Management  26 8 Return to previous view Our approach to reducing our environmental footprint 26 Environmental performance 27 Environmental compliance and governance 27 Managing water consumption 28 Supplementary Information 60 Legal contraventions 28 To complete a short survey on our reports, please click here Abbreviations60 Waste management 28 Corporate information 61 Circular economy 28 Phasing out of polychlorinated biphenyls (PCBS) 29 Coal ash beneficiation 29 Biodiversity 29 Our impact on ambient air quality 30 Air quality offset programme 32 1 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Reporting Suite and Approach OUR SUITE OF REPORTS FRAMEWORKS MATERIALITY The integrated report is prepared in accordance with  he full list of KPIs selected for reasonable assurance by IR T The consolidated and separate financial statements Eskom’s 2025 reporting suite covers the financial year Deloitte & Touche are disclosed from page 150 in the ended 31 March 2025 and considers significant events the Integrated Reporting Framework (January 2021) are prepared using the principle of financial integrated report. Their independent assurance report up to 29 September 2025, being the date the Board and aligns with: materiality. Information is considered material if its is included from page 153 and includes their basis of of Directors approved the reports. • The South African Companies Act, 2008 conclusion on the qualified KPI omission or misstatement could influence decisions by • Regulations issued by National Treasury covering the users of the financial statements. The suite of reports, available at www.eskom.co.za/ comprehensive disclosure under the Public Finance investors/integrated-results/, comprises: Management Act, 1999 (PFMA) of irregular ANNUAL FINANCIAL ASSURANCE • Integrated report expenditure, fruitless and wasteful expenditure and STATEMENTS In conjunction with the review by management, Exco losses due to criminal conduct and the Audit Committee on behalf of the Board, • Annual financial statements PURPOSE AND AUDIENCE the consolidated and separate financial statements • Sustainability report • King IV Report on Corporate Governance™ for The consolidated and separate have been audited by Deloitte & Touche, acting on South Africa, 20161 (King IV) annual financial statements Each report is tailored to a specific audience, guided behalf of the Auditor-General of South Africa. They • Global best practice intend to provide a fair and by relevant frameworks and regulations, and subject issued a qualified opinion regarding certain PFMA- comprehensive view of the to defined materiality thresholds and assurance levels. We are assessing the implications on future reporting related disclosures. Except for this qualification, financial position, performance of the IFRS® Sustainability Disclosure Standards the financial statements are considered to be fairly and cash flows of the Eskom S1 and S2 which deal with general sustainability- presented in terms of IFRS Accounting Standards. group and company for the The audit report also highlights several matters. One related disclosures and climate-related disclosures year ended 31 March 2025. of these concerns a material uncertainty regarding respectively, issued by the International Sustainability Standards Board (ISSB) in June 2023. Eskom’s ability to continue as a going concern, The financial statements include: which is due to its dependence on Government MATERIALITY • Reports by the Board of Directors and the Audit support, uncertainties related to the achievement of We apply the principle of double materiality in the Committee operational assumptions and the determination of integrated report: • Statements of financial position, profit and loss, regulated revenue by NERSA, as well as the financial • Financial materiality: External factors impacting changes in equity and cash flows, together with risk associated with municipal arrear debt and energy financial results detailed notes losses. These matters do not affect their opinion. INTEGRATED REPORT • Impact materiality: Internal matters affecting the • Events after the reporting date, PFMA disclosures PURPOSE AND AUDIENCE external environment for the current year, the impact of new accounting AFS T he independent auditor’s report is included in the The integrated report provides a comprehensive standards and details of reportable irregularities annual financial statements overview of Eskom’s value creation journey, strategy, Materiality is assessed both qualitatively and raised by the external auditors governance, risks and opportunities, performance and quantitatively, aligned with strategic objectives and risks. outlook. Supplementary information is also included. The financial statements serve a wide audience, including ASSURANCE We believe in providing a balanced, transparent and shareholders, investors, creditors, regulators, analysts, The report is reviewed by subject matter experts from complete account of the group’s performance, by employees and the public by providing decision-useful the business, as well as by management, Exco and the focusing on matters material to our ability to create information to users while ensuring transparency and Board. Furthermore, Internal Audit provided reasonable or preserve value, or to limit the erosion of value over comparability across reporting periods and entities. assurance on quantitative non-financial data disclosed the short, medium and long term. in the report. Deloitte & Touche, our independent FRAMEWORKS The report aims to provide information to our external auditors, provided reasonable assurance on a The consolidated and separate financial statements stakeholders, the most notable of which is the people selection of key performance indicators (KPIs) disclosed have been prepared in accordance with IFRS® of South Africa, both as our indirect shareholders – in the integrated and sustainability reports. All but one Accounting Standards issued by the International SUSTAINABILITY REPORT represented by the Minister of Electricity and Energy – of the 35 KPIs scoped for reasonable assurance received Accounting Standards Board (IASB) as well as the PURPOSE AND AUDIENCE and as our customers. It is further aimed at providers of an unqualified opinion. Deloitte & Touche also reviewed requirements of the PFMA and the Companies Act. The sustainability report expands on the integrated financial capital – lenders, bondholders and investors – the report for any statements contradicting the annual report by detailing Eskom’s sustainability impacts. as well as our broader stakeholder base. The information financial statements or for inconsistencies with the It targets a wide range of stakeholders interested provides a means of accountability to stakeholders and sustainability report. in our environmental, social and governance (ESG) allows them to make informed decisions. performance. 1. Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved. 2 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Reporting Suite and Approach continued FRAMEWORKS In this report, short term means within one year after The sustainability report is guided by the reporting year end, medium term within one to five years, and principles of the Global Reporting Initiative (GRI) long term more than five years. When reporting on and considers our contribution to the United KPIs in this report, we have included the short- and Nations’ Sustainable Development Goals (SDGs). It medium-term targets. Where applicable, we disclosed includes climate-related disclosures which have been the targets agreed in the annual compact with the incorporated into IFRS S2 Climate-related Disclosures. Department of Electricity and Energy (DEE) as As indicated earlier, we are assessing the implications representative of our one direct shareholder, the of IFRS S1 and S2 on future reporting. South African Government, acting on behalf of the people of South Africa. Our internal ESG framework sets out the material ESG risks and opportunities we face and the REPORTING BOUNDARY AND governance structures that provide oversight on the COMPARABILITY plans in places to address these. We measure our The report includes the performance of Eskom performance through targeted metrics. Holdings SOC Ltd and its major subsidiaries, with the MATERIALITY risks, opportunities and outcomes related to relevant The sustainability repor t focuses on the principle stakeholder interactions. Financial data is presented in of impact materiality, highlighting the group’s most South African Rand, our functional and presentation significant effects on the economy, environment currency. Information is comparable to prior years and people. unless otherwise noted. ASSURANCE The sustainability report should be read in The report is reviewed by subject matter experts conjunction with the integrated report and the from the business, as well as by management, Exco financial statements for a complete overview of and the Board. Furthermore, Internal Audit provided Eskom’s performance across all dimensions. reasonable assurance on quantitative disclosures. PREPARATION PROCESS Selected KPIs subject to reasonable assurance by The sustainability report is prepared by a team the external auditors have also been disclosed in the from the Strategy and Sustainability Division under sustainability report. Deloitte & Touche also reviewed supervision of the Group Executive: Strategy and the report for any statements contradicting the annual Sustainability, Nontokozo Hadebe. financial statements or for inconsistencies with the integrated report. The report draws on inputs from across the business and the content is influenced by identified material OUR APPROACH TO INTEGRATED matters. KPIs reported herein are based on internal REPORTING measurement specifications. Financial figures are We adopt an integrated thinking approach, by sourced from the audited group annual financial evaluating the business holistically and balancing trade- statements, which are prepared in accordance with offs across financial and non-financial dimensions. IFRS Accounting Standards. REPORTING PERIOD This sustainability report reviews our environmental, IR The definitions of KPIs assured by Deloitte & Touche are social and governance performance for the included from page 150 of the integrated report financial year from 1 April 2024 to 31 March 2025 and considers the outlook for the future where The report is reviewed by subject matter experts appropriate. Performance data in this report relates from the business, as well as by management, Exco to the 2025 financial year (FY2025) unless otherwise and the Board, in conjunction with the assurance stated. Significant events after year end to the date of provided by Internal Audit. approval by the Board have been included. 3 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Statement by the Chairman of the SES Committee Our employees are at the heart of everything we The evolution of our vertically integrated operating We continue to showcase, through our sustainability do, and this has been validated by Eskom being structure saw the legal separation of the transmission reporting, that Eskom has a significant role in the recognised as a Top Employer for 2025 by the Top business into the now fully operational National socio-economic and environmental impacts of Employers Institute, placing us among an elite group Transmission Company South Africa, representing our country, and it is critical that every one of our of organisations globally acknowledged for their a pivotal step in enabling a competitive electricity stakeholders understand their specific responsibilities. dedication to creating an exceptional workplace. market. The unbundling of the Distribution business It is only if this is done with sincere and dedicated This achievement reinforces our dedication to our is progressing, albeit at a slower pace due to legal and commitment to uplift the citizens of this country, employee’s growth, well-being, and empowerment financial complexities. as we evolve into a radically different energy and is a testament to the collective effort of every organisation, that we will succeed in sustainable value member of our Eskom team in driving employee The year 2025 marks two important milestones creation. development and reskilling, and fostering a high for the global sustainability movement: the 25th performance, innovative and agile environment to anniversary of the United Nations Global Compact As the chair of Board SES, I am encouraged by the respond to the evolving energy landscape. (UNGC) and the 10th anniversary of the Sustainable commitment and dedication of all Eskom guardians in Development Goals (SDGs). It is with pride that we positioning Eskom as a responsible leader, reaffirming Tragically we lost the lives of three colleagues during reflect on our own contribution to the sustainability our commitment to integrating sustainability into the financial year. This is a painful reminder that every journey, as a responsible organisation and one of our business strategies. We will continue to strive incident has a human face, a family left behind, and a the earliest members of the United Nations Global for excellence in all that we do and reinforce story cut short. These tragedies have compelled us to Compact (UNGC). our collective commitment to achieving a more pause, reflect deeply, and acknowledge that safety is sustainable future. not the responsibility of one person, one department, Ensuring ongoing environmental duty of care is As we navigate the environmental, social and critical to maintaining Eskom’s license to operate and I extend my deep gratitude to our board members, governance (ESG) challenges of balancing the energy or leadership alone, it is our shared accountability. There is continued support on the Eskom initiatives underpins the Eskom principle of Zero Harm to the executive team, employees, and partners for their trilemma, our commitment to ethical leadership environment. Maintaining full compliance to all our unwavering resilience and dedication, and I am proud and sustainable progress has never been more that commit to a culture where safety is never compromised. environmental obligations is linked to the state and to present to you our sustainability report for the year critical, with ESG taking centre stage in corporate reliability of plant and in particular the power stations. ending 31 March 2025. accountability. The global shift from voluntary We have been prioritising the enhancement of While this continues to be a challenge, material gains to mandatory reporting disclosures driven by governance processes through digital technologies have been made through the effective implementation governments and regulatory bodies, has compelled to strengthen compliance, internal controls, and of the Generation Recovery Plan which impacted us to reflect on, and benchmark our own ESG cybersecurity. A strong focus has been placed on positively on the achievements of the air quality plan to ensure that we strengthen and align with ethics, fraud, and corruption and this is evident in improvement plan and the water implementation global best practices. This report reflects not just Mr Bheki Ntshalintshali our efforts to accelerate forensic case resolution, plan. The transition from reactive compliance to Chairman: Social, Ethics and Sustainability Committee our performance, but our responsibility to future implement the fraud prevention plan and enforce proactive environmental leadership is also symbolised generations in ensuring that we are progressing our effective consequence management. Through our by our investment in emission reduction technologies organisation into an era of sustainable low carbon collaborations with the National Joint Operational and commitment to inclusive sustainability as further energy supply, whilst ensuring our dedication to and Intelligence structure (NATJOINTS) Energy illustrated in our community-focused initiatives aimed equity and justice to the communities we serve and to Safety and Security Committee, we continue to make at improving the quality of air. the planet we share. strides in addressing fraud, corruption, and criminal activities within Eskom, its supply chain and the For us as a utility, it is not just about providing stable The Board, through its Social, Ethics and Sustainability and affordable electricity supply – we are deeply committee plays a crucial role in providing strategic South African broader energy infrastructure, with arrests highlighting significant progress in ensuring embedded in our country’s social and economic guidance on ESG integration and ensuring alignment fabric to support economic growth and enhancing with our long-term sustainability goals and regulatory accountability and justice. the quality of life for all South Africans. We continue compliance. to support management in championing skills The introduction of the new Exco structure has development, empowering local businesses and brought stability to the organisational leadership, investing in corporate social investments and socio- enhancing sustainability, driving renewable energy economic development projects and initiatives. expansion, and fostering an ethical high-performance culture. 4 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Statement by the Group Chief Executive hazards such as burnout and fatigue. By fostering specific jobs can offset the jobs lost from current for power stations operating up to 2030 and provides supportive work environments and promoting the operations. At Grootvlei we have started doing this for an exemption process for plants operating beyond principles of Sinobuntu – compassion, empathy and through the development of the Grootvlei Climate 2030, with plant specific conditions which we are unity, we are building a resilient workforce that thrives Smart Horticulture Centre in developing new skills to addressing. We are dedicated to not only complying both mentally and physically. We are proud to report stimulate economic development in the community. with the regulatory requirements but to also that employee lost time incident rates (LTIR) are implementing sustainable solutions to ensure long- progressively decreasing over the years. The upgrading of Eskom’s credit risk rating by S&P term operational efficiency and reducing any negative Global from stable to positive also provides a impacts on health and environmental stewardship. Despite our continued efforts to prioritise the positive message to our investors and stakeholders, safety of our employees through our various safety reinforcing trust in our ability to deliver energy security Our business continuity and sustainability are initiatives, it is with immense sorrow that we report while driving long-term sustainability. In addition, to strengthened by the quality of our relationship with three work related fatalities: one employee and two accelerating our participation in the renewable energy our stakeholders. As a state-owned entity with both contractors. This tragic loss is unacceptable and in space, the Eskom Board approved the establishment business and developmental responsibilities, we disparity with our intention that every person must of a renewable energy company (Eskom Green) to have been engaging with our stakeholders to ensure get home safely every day. We remain committed to diversify our energy mix and reduce our emissions that our operations are inclusive, transparent and our goal of Zero harm and intensifying our efforts related to fossil fuel generation. We have already responsive to societal needs. We value a strong, to enhance safety protocols and cultivating a vigilant developed a pipeline of more than 20GW of clean honest relationship with our communities and workplace culture. energy projects and over the next three years we have maintain effective communication through various an ambition to execute at least 2GW of these projects. platforms. Our leadership is firmly committed to In a year where we celebrated the fruits of the upholding the values and ethical standards and My return to Eskom in March 2024 was during a generation recovery plan, with 352 loadshedding- With the Climate Change Act 22 of 2024 coming into to visibly demonstrating this commitment to our pivotal moment as the business was undergoing a free days, it was regrettable that we had to revert to effect this year, we remain a key player in the national stakeholders hence we continue to publish a separate major transformation to restore operational stability, short periods of loadshedding between January and and global climate change landscape and are leading sustainability report that focuses on our ESG financial sustainability, and public trust. Leadership March 2025 due to constrained capacity. This setback, the way for a just transition to cleaner technologies. performance and impact. stability was one of my key priorities and as I write however, should not overshadow the significant We actively support the country’s ambitions to achieve this, all of Eskom’s executive committee (Exco) strides we have made in propelling our organisation net-zero emissions by 2050 through a comprehensive The publishing of this report demonstrates my positions are now filled. forward. These include, amongst others, the addition strategy that includes deploying renewable energy commitment to continuing our journey towards of 799MW of new capacity to the national grid from technologies, phasing out many coal power stations transparency in reporting our ESG risks, opportunities We continue to review our business and operating Kusile Power Station’s final unit. and implementing smart grid technologies. Our and impacts. model, influenced by national energy reforms and the commitment to sustainability is evident through our country’s National Development Plan. In response We are advancing our Just Energy Transition (JET) significant reduction in CO2 emissions which represents to material developments in the electricity sector, strategy and driving the repowering and repurposing a declining share of the national total. We continue to including legislative changes, market restructuring, of our coal fired power stations, independent of implement and integrate climate adaption, resilience and stakeholder engagement, the Eskom Board station operations and decommissioning plans, to and disaster risk management measures across the Dan Marokane has approved a revised strategic direction. This manage our decarbonisation transition to clean organisation to address the increasing risk extreme Group Chief Executive recalibration aims to balance national objectives, energy. We have learned valuable lessons during weather events pose on our business, infrastructure market dynamics, and our operational sustainability. our experience with Komati and are using these to and people. These measures will ensure energy The formal operationalisation of the National inform future JET projects where we realised that security, growth, and long-term sustainability for the Transmission Company South Africa in July 2024 simply engaging our stakeholders is insufficient. benefit of South Africa. signified an important milestone in shifting us away We need to go beyond this to foster active social from a traditional vertically integrated model, opening dialogue, enabling co-creation and consensus building We remain committed to reducing our environmental opportunities to remain competitive in the evolving with communities to ensure they are partners in footprint and improving air quality management, electricity market. the energy transition journey. We have already water use efficiency, and biodiversity protection. initiated engagements with local communities around Following our appeal relating to the Minimum This year we have taken important steps to make our Grootvlei, and processes to engage with communities Emission Standards (MES), we welcomed the Minister workplaces safer, support employees wellbeing and around Camden, Arnot, Hendrina and Kriel power of Forestry, Fisheries and the Environment granting protect the communities we serve. We have taken stations. We also need to diversify the economy us a positive decision, in that it upholds our request deliberate steps to identify and address psychosocial around the stations to ensure that sustainable site- 5 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC The Year in Review Improved water-use of 1.40ℓ/kWh sent out JET training initiatives increased (FY2024, 1.43ℓ/kWh sent out) 353 employees and 326 community contractors Limited exemptions to the MES granted Awarded 1 786 contracts worth R338.6 billion Phase 1 of air quality offsets programme completed (FY2024: awarded 1 309 contracts worth R107.7 billion) (5 591 houses retrofitted) Local content contracted: R317.63 billion; Decrease in overall legal contraventions 65 (FY2024: R97.7 billion) (FY2024: 68) – however increase in water-related CSI investment increased to R146.2 million; contraventions (FY2024: 93.1 million) Ash beneficiation successfully applied LTIR decreased to 0.23; (FY2024: 0.29) in road construction R1.5 billion spent on skills development; Red data bird mortalities decreased to 210 (FY2024: R1.4 billion) (FY2024: 258) Women make up 42.58% of our Senior Management 100% deployment of climate adaptation plans (FY2024: 42.52) across business operations 16% decrease in carbon footprint emissions (compared to 2019 baseline year) Continued mandatory PFMA training and awareness to all employees 247 criminal cases referred to Law Enforcement Agencies (FY2024: 330 cases) Priority risks reduced to 8 (FY2024: 13) Maintained certification of the ISO 9001:2015 Quality Management System Overall annual declaration of interest submission rate of 99.8% (FY2024: 99.7%) All Board and EXCO members have submitted their DOIs Dedicated Project Management Office (PMO) was established to expedite disciplinary and criminal case resolutions 6 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our ESG Approach Our purpose is to power economic growth sustainably, requiring Eskom’s mandate the ongoing determination and treatment of the ESG risks which the Assist in lowering the cost of doing business in South Africa, enabling economic growth; and providing stability of electricity supply through company faces. At the forefront of Eskom’s ESG focus are the transition providing electricity in an efficient and sustainable manner. Eskom will achieve this through an electricity network including generation, to cleaner and lower carbon energy sources, electricity supply reliability transmission and distribution whilst ensuring that this is done within acceptable benchmark standards. and affordability, ensuring environmental compliance, socio-economic transformation (directed at addressing poverty, unemployment and legacy inequities), improving safety, eliminating fraud, corruption, and criminality, and ensuring transparent and honest communication. Purpose Vision We recognise the ambitious scale of this purpose. This challenge becomes Powering growth sustainably Sustainable power for a better future even more daunting when considered along with our unbundling and organisational evolution/transformation. To navigate this complexity, Eskom’s ESG material matters we are leveraging our ESG framework, driving sustainable progress in (It is recognised that there is a relationship between environmental, social and governance issues – integrated approach due to the interconnectivity) alignment with the SDGs and relying on the focused leadership and delivery from our Eskom guardians and partners, to turn this aspiration into reality. Our stakeholders, particularly investors, evaluate our sustainability and societal impact through the ESG lens. Environmental Social Governance The Eskom values are key in driving responsible environmental management: explicitly, through the aspiration of zero harm, we strive to be Transitional risk and physical Social capital: Governance structures: stewards of the resources that we require and we have short, medium and climate: • Energy security, affordability/access • Leadership, governance, compliance long-term goals to reduce the associated impacts; implicitly, each of the rest • Climate change mitigation and and sustainability and ethics of the values are directed towards care for the environment in all of our adaptation. • Loadshedding and load reduction • Unbundling and legal separation of business planning, operations, and, more recently our Just Energy Transition Natural Capital: • Just energy transition Eskom (repowering and repurposing). • Water use, reduction, security of • Electricity theft, low and non- Risk management, culture and The environmental stewardship is revisited annually, through a supply and pollution. payment by customers oversight: precautionary assessment of our strategic risks and enhancing our • Biodiversity – land use and impact • Supplier Development, Localisation • Values organisational resilience. We identify Specific, Measurable, Achievable, on wildlife and Industrialisation (SDL&I) • Culture Relevant, and Time-bound (SMART) Key Performance Areas (KPAs) Waste management and air quality: • Corporate social investment • Enterprise risk management and Key Performance indicators (KPIs), manage these and report on Occupational Health and safety and performance towards continuous improvement, based on integrated • Air pollution, health and air quality • Resilience wellbeing: management systems and rigorous internal and external audits. Heeding management. • Cyber-security the reality of financial constraints, we have opted for temporary solutions, • Waste reduction and beneficiation • Air quality, public safety, contractors Transparency and reporting: such as offset programmes and exemptions as we build up the capital and employee’s wellbeing (financial, human and technical) to most equitably raise the quality of lives • Integrated and sustainability reporting • Human capital: of all our citizens. It is a journey that demands sacrifice and unstinting • Fraud, corruption, and criminality • Diversity and inclusivity collaborative effort to be realised; however, we are conscious that we are • High performance and ethical culture working collectively in the interests of the planet and the people, while • Skills development and retention contributing to the economy. We actively drive the social mandate by safeguarding our people, Zero Customer Pursue financial Facilitate a Modernise Strive for net-zero promoting socio-economic transformation, and maintaining transparent Harm Integrity Innovation Sinobuntu satisfaction Excellence and operational sustainability competitive future energy industry our power system emissions by 2050 with an increase in sustainable jobs communication with our stakeholders. These initiatives include building social capital, promoting health and safety, and developing a motivated and engaged human capital. We are supporting South Africa’s socio- economic development through the Eskom Development Foundation (ESDEF), and leveraging opportunities created by the extensive capital expenditure programmes to bring about positive changes in both the social and economic aspects of society. 7 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our ESG Approach continued A key governance focus is on combating fraud, corruption, and crime to successfully turn around the Commercial mandate Social mandate organisation and rebuild our stakeholders’ confidence Assist in lowering the cost of doing business in Our Providing electricity in an efficient and and trust in the organisation. We wish to reaffirm SA, enabling economic growth mandate sustainable manner the company as worthy of further future investment, whether this be from the fiscus, development finance, Our vision Our purpose the private sector or a blend of all of these. Our Sustainable power for a better future Powering growth sustainably governance structures and committees provide the governance framework for overseeing and ensuring Shareholder priorities that the business operates effectively and adheres to Achieving universal access, Attain Drive Qualitatively transform Assert SA, legal and ethical standards. availability, sovereign and industrialisation energy demographicsl elevate continental and As noted, our approach to ESG is integrated into our affordability and quality regional energy secutiry and lead innovation role of women and youth global energy leadership strategy, business objectives and risk management Eskom strategic objectives processes. This is to ensure we continually identify the material ESG risks and opportunities we face so Pursue financial and Facilitate a competitive Modernise our Strive for net-zero that we can effectively treat the risks and pursue the operational sustainability future energy industry power system emissions by 2050 opportunities. This is done through strategies, plans and other initiatives with the oversight of appropriate • Recover and sustain EAF to • Define Eskom’s role in the energy • Accelerate TDP execution • Drive Komati, Grootvlei, governance structures, measuring effectiveness 70% in the long term transition and in the future including alternative funding models Hendrina, Camden against KPIs. • Implement innovative solutions • Operationalise Dx, establish • Strengthen Distribution network repowering and repurposing including Distribution Agency NewCo and operationalise Gx infrastructure including smart initiatives With our suite of reports, the Integrated Report, Agreement to reduce • Fine-tune Gx and Dx business meters and microgrids rollout • Collaborate with government the Sustainability Report and the Annual Financial municipal arrear debt and models, to improve customer • Increase flexibility of power on optimised MES compliance Statements, we have addressed aspects of our energy losses centricity system infrastructure • Participate in Distributed business using the “double materiality lens” (a) the • Rebase costs, maximise • Drive clean energy project • Develop and implement Energy Resources (DERs) sustainability issues that create financial risks or profitability development through the digitalisation strategy and drive eMobility opportunities for the company and (b) the impact • Strengthen leadership establishment of RECo of the operations of the organisation on people, stability and upskill and • Develop Eskom’s PSP/PPP model the environment and the economy. We have thus reskill employees for future and unit given attention to our governance oversight of opportunities the strategies and plans to address the risks and Entrench a Use data analytics to Improve controls and Obtain Drive opportunities that we have identified, and the SMART high‑performance create value governance processes to unbundled socio-economic way we measure our performance against our ethical culture, and enhance address fraud, corruption tariffs approval transformation aspirations. innovation and agility decision making and criminality (NERSA) Our values Customer Zero Harm Integrity Innovation Sinobuntu Excellence satisfaction 8 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our ESG Approach continued In the pursuit of our strategic objects, we have determined the material ESG risks being treated and Our eleven material ESG matters on which we have focused on in this report include: opportunities to be pursued. In doing so, the strategic objectives are supported by integrating ESG dimensions into our strategy using the following structured process: (G) Executing the legal separation of the Continuity or evolution of ESG ENVIRONMENT SOCIAL GOVERNANCE generation, transmission prior-year material matters and distribution businesses 1 The likelihood and Shifts in the external potential consequences operating environment of the matters (ESG) Achieving (S) Building a skilled (E) Enhancing (G) Upholding 6 2 operational excellence workforce within a (G) Strengthening environmental governance, compliance to permanently end the high-performance, leadership stewardship and ethics electricity crisis ethical culture Integration of ESG (G) Securing financial dimensions sustainability through (ESG) Creating the adequate tariffs, (E) Advancing climate (S) Furthering national (G) Combatting crime, 5 3 Eskom of the future and disciplined cost action developmental goals fraud and corruption achieving a JET management and Key issues Government-led deliberated by Exco Stakeholder concerns programmes and the Board and expectations The oversight of these eleven material ESG matters and the initiatives to address the risks and pursue the opportunities is 4 though Exco and Board committees. Strategic risks and We utilise our ESG framework as a canvas to ensure that we holistically work towards continual improvement. We want to opportunities accurately monitor this, to meaningfully contribute to achieving the goals and thereby, our NDP, from now to 2030. Throughout the report we have highlighted the key SDGs and our business performance contribution relative to the goal. Positive Negative Neutral Where possible, we have assessed our performance and rated it in terms of positive (green), negative (red) and neutral (amber) and reflected it in the report next to the relevant parameter. 9 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Introduction This report provides a transparent summary of We have a long history of responsible environmental organisations worldwide to adopt sustainable and has been a participant since 2000. After a temporary Eskom’s FY2025 sustainability performance and management with our first formalised environmental socially responsible policies, and to report on their pause in its partnership due to financial constraints, impact in the ESG areas. It is intended for a wide policy developed in 1980 with subsequent focus on implementation. It that aims to drive “business as a Eskom has re-joined the UNGC to accelerate the range of stakeholders, including our employees implementation. We joined the United Nations Global force for good” by encouraging companies to take development of its people and advance sustainability (the Guardians), the South African government, Compact (UNGC) in 2000, with environmental shared responsibility for a better world. goals by adhering to its ten key Principles. unions, investors, regulators, suppliers, civil society, management evolving into responsible sustainable and customers, and includes both a review of past development. The primary objective of this global Eskom was one of the first signatories of the UNGC performance and a look ahead to future initiatives. sustainability initiative is to encourage businesses and (which celebrates its 25th anniversary this year) and Pre-1990s: Ad hoc phase 1990s–2000s: Compliance phase • Limited environmental and social governance. • Introduction of basic environmental controls. • Focused primarily on electricity generation and infrastructure expansion. • Development of robust R&D Programme with engineering capability including air quality and water quality monitoring • Alignment with national regulations and early reporting practices • Joined UNGC LEAD 2024-onward: Sustainable Development Leadership • Focus on repurposing coal plants (e.g., Komati). • Review, benchmarking and gap assessment of ESG framework 1925 1935 1945 1955 1965 • Alignment with international standards (TCFD, ISSB). • Emphasis on regenerative practices 2020–2023: Strategic integration phase 2010s: Impact management phase and circular economy. • ESG embedded in strategy (e.g., GRI and SDGs). • Eskom invited to advise on the UN SE4ALL Initiative • Embedding sustainability • Launch of the Just Energy Transition (JET) Strategy. • Extensive participation, nationally and Internationally in the global climate deliberations into the evolving Eskom • Challenging balance between focussing on security of supply through plant • Adoption of sustainability frameworks (e.g., GRI, SDGs). • Emphasis on meeting maintenance and optimisation and emission reductions • Integration of environmental and social KPIs. goals of the SDGs and • Enhanced stakeholder engagement and governance structures • Initiated climate change disclosures. the NDP for all South Africans 2024 2015 2005 1995 1985 1975 10 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Introduction continued In alignment with global best practise and influenced is inextricably linked to the SDGs and the energy and by a robust energy Research and Development (R&D) electrical infrastructure that enables their attainment internal policies and procedures were amended by 2030. to align with best practice. Notable achievements included being one of the first electricity utilities to We play a pivotal role in supporting both the National partner with a local Non-Governmental Organisation Development Plan (NDP) and advancing the United (NGO), the Endangered Wildlife Trust (EWT), Nations SDGs. The NDP emphasises inclusive to manage impacts on vulnerable populations of economic growth, infrastructure development, and avifauna (1996); introducing novel ambient air quality environmental sustainability, objectives that align monitoring using weather balloons and remotely closely with SDG 7 (Affordable and Clean Energy), piloted aircraft (1990s) and initiating riverine SDG 8 (Decent Work and Economic Growth), monitoring to detect cumulative impacts on surface SDG 9 (Industry, Innovation and Infrastructure), and water from stack emissions (1993). SDG 13 (Climate Action). Our efforts to stabilise the national grid, diversify the energy mix through The significance of electricity in the optimal renewable sources, and reduce greenhouse gas performance of the state and the responsibility emissions are critical to achieving these goals. It is to undertake this function with the due diligence crucial that we engage collaboratively (SDG 17) in that was required, was well understood by the this transition to ensure that we address our historical monopolistic Eskom of the time. The scale at which national inequities. Therefore, by aligning our strategic this function was undertaken, the complexity of initiatives with both national and global development the processes, from sourcing the input material, frameworks, we contribute to building a more processing, generating, transmitting, and distributing sustainable, equitable, and resilient energy future for the product to the customer, and the number South Africa. of internal and external stakeholders involved, necessitated complex and dynamic systems. Our short, medium and long-term plans and projects are aligned with the South African NDP and the While innovative technical engineering feats were SDGs. being pursued to optimise technical performance (and production and profit realisation), the optimisation Although the alignment of elements demonstrates of non-technical aspects took longer to gain traction. the ubiquity and role of energy and electricity for all However, the gradual acceptance of the longer-term the SDGs, for practical purposes Eskom has focused impacts has been made with ongoing integrated on the goals where projects or programmes exist or reporting, analysis of our social contribution (through there is opportunity to contribute to specific targets the Eskom Sustainability and Factor reports), stronger relating to specific goals. Meeting the targets will be focus on ESG responsibility by the organisation and a significant challenge necessitating a collaborative the tracking of the development and evolution of effort by various sectoral partners, communities and Sustainability and Climate Change reporting practices government. (towards IFRS S1 and S2) aligning to the requirements At Eskom, successfully integrating essential of their rigorous, fiduciary counterparts. sustainability processes into our operations, such as Emerging from an era of poor technical performance sustainable procurement, information technology and with an aging fleet and the economically crippling innovative green energy solutions, will be crucial to consequences of electrical supply disruptions and our success. This will be achieved while we navigate loadshedding, Eskom is cautiously working towards an unprecedented organisational transformation. technical system stability. However, the “non- We will rely on the leadership and commitment of technical” factors which exacerbated the downward Eskom’s guardians and partners, who have envisioned performance cannot be left untreated. The optimal a sustainable energy future, recognising the unique performance of the state, the redress of historical possibilities and opportunities available to South Africa. inequities and raising of our global competitive index 11 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Introduction continued Sustainable National Development Plan Priorities Energy and Electrical Aspects Development Goals Poverty: affordability, non-technical losses, rural electrification, SMMEs, MES Offset Programme, Poverty: eliminate poverty and reduce inequality by 2030 No Poverty appliances – quality of life, microgrids, JET Food: irrigation, bulk rail transport to markets and electro-technology innovation for agriculture, Food: realise a food trade surplus, with one-third produced by small-scale farmers or households Zero Hunger maintain cold chain, horticulture/aquaculture Wellbeing: state of the art health facilities, rural electrified clinics, medication refrigeration, Wellbeing: nine goals: the first five relate to the wellbeing of the population (long-term health goals) Good Health and Well-being MES Offset Programme, transition to cleaner energy production Education: rural electrification, ECD centres, high-tech ICT education solutions, robotics, STEMI Education: universal early childhood education; globally competitive literacy and numeracy standards Quality Education Programmes, EXPO, TESP Gender inequality: Improve rural quality of life, avoid water and firewood collection, Gender inequality: campaigns for non-racialism and gender equity, and against gender violence Gender Equality HR accelerated gender equity programmes Water and Sanitation: high-efficiency water supply and treatment technologies, desalination, Water and Sanitation: affordable, reliable access to sufficient safe water and hygienic sanitation Clean Water and Sanitation exponential innovation of waste to value creation Energy: 90% grid connection by 2030, alternative off-grid options and microgrids; Battery Energy Energy: Central to all of the targets under this goal, JET, repowering and repurposing, Affordable and Clean Energy Storage energy storage, wheeling of renewable energy, energy efficiency Economic growth: Energy critical for an efficient effective economy, Supplier, Development Economic growth: 11 million jobs by 2030 Decent Work and Economic Growth Localisation and Industrialisation (SDL&I), energy for SMMEs, 4IR techs R&D and Innovation and Industrialisation: circular economy and biomimicry; Industrialisation: mineral resources - springboard for a new wave of Industrialisation; beneficiation Industry, Innovation and Infrastructure increasing automation and energy efficiency; energy and technologies for beneficiation Country Inequality: equitable national quality of supply; reduce energy paucity locally and in the in Country Inequality: Reduce inequality – The Gini coefficient to fall from 0.69 to 0.6. Reduced Inequality the region, regional trading Human Settlements: Rural electrification, efficient resource supply for safe urban growth, Human Settlements: Upgrade all informal settlements on suitable, well-located land by 2030 Sustainable Cities and Communities control of non-technical losses Production and Consumption: shifting the economy towards more investment and lower Responsible Consumption and Production and Consumption: Electro-technologies for recycling and re-use, investment in consumption Production circular economy technologies; energy efficiency Climate Change: transition to an environmentally sustainable, climate-change resilient, low-CO2 Climate Change: transition to an environmentally sustainable, climate-change resilient, low-carbon Climate Action economy economy; decarbonisation Oceans: set new target – currently 848kms of coastline and 4 172 square kms of ocean are protected Life Below Water Oceans: Ocean energy generation technologies, desalination; technologies for pollution prevention Ecosystems: technologies and programmes to conserve and rehabilitate ecosystems and Ecosystems: Biodiversity management on utility land, offsets, continual improvement in Life on Land biodiversity assets. environmental management and rehabilitation Equitable Society: Employment transformation, B-BBEEE, SDL&I, Enterprise and Supplier Equitable Society: build by 2030 just, fair, prosperous and equitable country Peace, Justice and Strong Institutions Development (SMMEs); CSR and ethical corporate citizens Partnerships: Closer partnership between countries, firms and people deepen Partnerships: e.g. NBI, SAPP , United Nations Global Compact, Communities, Customers, Partnerships for the Goals socio-economic integration the Shareholder, and all Interested and Affected Parties (I&APs) 12 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance Key Governance Aspects Legal Legal Shareholder Board Regulator Operational Separation Exemption​ RSA 7th administration established the Stable under leadership of Dr M Nyati; The NTCSA was officially established on NERSA approved Eskom's MYPD 6 Eskom requested MES exemption to Department of Electricity and Energy appointment of Mr L Mkhabela 1 July 2024 to operate the national application (30 January 2025), authorising ensure energy security and an energy (DEE) after May 2024 elections – (Lead Independent Director) Transmission system and system operator revenue increases of 12.74% for 2025/26, transition. In March 2025, the Minister of Minister Dr K Ramokgopa – to whom functions 5.36% for 2026/27 and a 6.19% increase DFFE issued exemption decision for eight Eskom Holdings reports Risk Committee decoupled from Audit for 2027/28 power stations operating beyond 2030 and Risk Committee Governance is crucial for ESG reporting as it provides related risks that could affect our operations, finances the framework, accountability, and oversight needed and reputation. By driving continuous improvement to ensure the accuracy, transparency, and integrity of and reporting on our performance and impact, we the ESG information reported. It underpins credible build stakeholder confidence and reassure investors, ESG reporting by ensuring that the processes and regulators, customers, and employees that the controls around sustainability data and disclosures are company is committed to responsible and sustainable robust and effective. business practices. Eskom’s governance framework is shaped by laws To strengthen governance and enhance our like the Public Finance Management Act (PFMA) and investigative capabilities, we have consolidated the corporate principles such as the King IV Code of forensic, security, and investigative functions into Corporate Governance. Our sole shareholder is the the newly formed Group Investigations and Security South African government under the Department Division, which reports directly to the Group Chief of Electricity and Energy, and business oversight is Executive. Through the collaboration with the provided to the shareholder by our Board of Directors. NATJOINTS Energy Safety and Security Priority The Exco are accountable for exercising executive Committee, we ensure swift action against fraud and control over day-to-day operations to deliver on the corruption, protect our assets and resources and have strategy as approved by the Board. enhanced stakeholder confidence and trust. Our strong governance policies and procedures A dedicated Project Management Office (PMO) enable the delineation of clear roles and was established to expedite disciplinary and criminal responsibilities from its board all the way to its case resolutions using advanced data analytics. employees. Transparency is a key pillar for us, Beyond suspending or dismissing employees engaged demonstrated in our continued reporting, as it in criminal activity, we rely on the South African promotes honest and comprehensive disclosure law enforcement and justice system to arrest and of our ESG risks, impacts and progress to our successfully prosecute them and thereby send a stakeholders. Through our risk management strong message that corruption and fraud will not be processes we actively identify risks and mitigate ESG tolerated in the organisation. 13 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued HOW WE ARE REGULATED AND GOVERNED ESKOM HOLDINGS SOC LTD Board of Directors Exco and Committees REGULATORS Audit Capital NERSA Business Operations Performance Information and Technology SUBSIDIARIES National Nuclear Regulator Governance and Strategy Nuclear Management National Transmission Company South Africa SOC Ltd Human Capital and Remuneration Operating Eskom Enterprises SOC Ltd Investment and Finance Regulation, Policy and Economics Divisional Eskom Rotek Industries SOC Ltd Risk Risk and Sustainability boards Social, Ethics and Sustainability Tender Escap SOC Ltd SHAREHOLDER AND POLICY Turnaround Eskom Finance Company SOC Ltd MINISTRY Eskom Development Foundation NPC Department of Electricity and Energy Line divisions National Electricity Distribution Company Generation Distribution South Africa SOC Ltd (not trading) OVERSIGHT MINISTRIES Strategic functions FUTURE SUBSIDIARIES Strategy & Planning Risk and Sustainability RT&D Internal Audit Generation Company National Treasury Group Investigation & Security Company Secretariat Eskom Green (renewables company) Department of Forestry, Fisheries and the Environment Department of Water and Sanitation Support functions Finance Human Resources Procurement Legal & Compliance Group Information Technology Government & Regulatory Affairs LEGAL SEPARATION underway. To date, the functional separation of all Key developments in South African electricity sector reform South Africa’s electricity sector is evolving, with the three business units has been successfully completed. liberalisation of the electricity market anticipated to The National Transmission Company South Africa Legal separation of NTCSA Key learning in governance and operational independence drive broader market participation through the entry (NTCSA) achieved legal separation and commenced Electricity Regulation Amendment Mandates creation of independent Transmission System Operator (TSO) of new players and market roles, to enable energy trading as a subsidiary on 1 July 2024. The next Act (38 of 2024) accessibility, security and affordability for every South step for the programme is to legally separate the African citizen. Through the unbundling, Eskom aims Distribution and Generation entities. Legislative input from Presidency Requirements for establishment of NewCo which includes Generation and DEE to become a group of agile, forward looking separate legal entities poised to capitalise on emerging Since the publication of the DPE Roadmap for the Operation Vulindlela Phase 2 Focus on accelerating energy reforms and infrastructure development opportunities and thrive in the new energy landscape. restructuring of Eskom, there have been fundamental and material developments within the Eskom Municipal debt crisis Threatens financial sustainability of Distribution and Eskom going forward In alignment with the Department of Public environment as well as in the broader market. Market code development Framework for South African Electricity Wholesale Market Enterprises (DPE) Roadmap issued in 2019, the legal separation of Eskom into three distinct entities is Engagement with NERSA and Defining Electricity Distribution Industry (EDI) reform and addressing NECOM market concerns Renewable Energy Company Independent subsidiary to compete in the green energy market, promote funding, investments and partnerships (Eskom Green) 14 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued These developments necessitated that we critically All our employees that wish to engage in private work Key focus areas include: review and revisit the unbundling strategy to enable must apply for permission to do so in line with the the business to navigate these market and legislative private work policy and Eskom conditions of service. developments, achieve the national objectives and Strengthening Policy Ensuring that ethics-related policies and procedures effectively manage ethical Divisional private work committees assess each strategic intent of the unbundling, and position itself Framework risk and clearly communicated and easily accessible to all employees. application against set criteria defined in the private for continued success and growth. Through this work policy. extensive process, the Eskom Board approved a Promoting Ethical Recognising and rewarding ethical behaviour by individuals and teams and Our private work policy defines set criteria used to strategic way forward on the unbundling strategy that that systems are in place to address non-compliance and unethical conduct. Conduct approve or reject private work: balances the objectives of the country, the market and the Eskom business. The key next steps include • The nature of the private work – is there a socialising and formally communicating the proposed Leadership Ensuring that leaders at all levels, including the Board, model ethical possibility of conflicting with Eskom’s interests? Commitment behaviour and actively promote a culture of integrity and high performance. unbundling strategy to the shareholder (DEE) and the • Possible use of Eskom’s time and resources. regulator (NERSA) to obtain support and initiating an • The effort and time required to perform private Provide ethics-related training to the Board, employees and suppliers to accelerated execution of the unbundling strategy. Ethics Training ensure awareness and consistent application of our ethical standards. work – will it interfere with your duties? • Employee performance appraisal rating. Anything ETHICS less than a performance score of 3 is an automatic Ensuring that all interventions and action plans outlined in the strategy are We are firmly committed to upholding our values Measurable Impact measurable with clear indicators of progress and impact. rejection of the application. and ethical standards, and to visibly demonstrating this commitment to all stakeholders. Directors and • All applications approved are subject to renewal on employees are expected to apply the principles an annual basis. outlined in the Code of Ethics (“the Way”) in their Through this approach, we aim to build and sustain All employees and directors are required to declare • Where application for private work has been daily activities. The Code reflects our dedication to a resilient organisational culture, rooted in ethical business courtesies received, offered and/or returned rejected, employees are afforded an opportunity to the highest standards of ethical conduct in all areas practice, accountability, and stakeholder trust. where the gift is deemed excessive. The value of a appeal the decision. of operation. It outlines the behaviours and attitudes business courtesy may not exceed R1 500.00 (one We are making good strides in improving compliance thousand five hundred rand) and anything above Our employees are allowed to engage in defined aligned with our core values; Zero Harm, Integrity, with the revised (September 2024) conflict that value is considered excessive and therefore types of private work on approval, if not considered as Innovation, Sinobuntu, Customer Satisfaction, requirements, which include (a) the mandatory prohibited. In addition, employees and directors may potentially causing a conflict of interest or contributing and Excellence (ZIISCE) and establishes guiding submission of annual Declaration of Interests (DOI) not offer or accept cash and gift vouchers as business to Eskom’s mandate as a business and a state-owned principles for interaction with all stakeholders. by all employees and (b) formal notification of courtesies irrespective of the value. company, these include: As part of our Ethics Management Framework, specific conflicts should they arise during the course of conducting business and recusal by the respective The Office of the Company Secretary (OCS) • Providing a service to an academic institution such we have developed an Ethics Strategy and Action party/parties from that part of the business being monitors the gifts register and alerts the line as a university or college or school (with or without Plan. This ethics strategy identifies key focus areas, conducted. management of any worrying trends in specific areas. receiving payment). interventions, and action plans aimed at fostering a high-performance, values-driven culture. The plan Excessive and prohibited gifts are not acceptable, and • Providing services to a non-profit organisation. During the period under review, the overall annual the OCS keeps track, monitors and maintains records • Being a trustee of a family trust or community. seeks to cultivate ethical awareness and strengthen declaration of interest submission rate of 99.8% of those returned or declined. In addition, employees ethical decision-making across the organisation. • Taking up a position or holding office in a was reached compared with 99.7% in the previous are regularly engaged through awareness messages professional body or advisory body. financial year. There are employees that could not regarding the requirements and limits for accepting or submit their annual DOIs because of maternity leave, • Pastor/evangelist. giving business courtesies. extended sick leave or being on suspension. All Board • Mentoring/coaching. and EXCO members have submitted their DOIs, and any identified conflict is being managed as required by the Companies Act. 15 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued CRIME, FRAUD AND CORRUPTION Examples have been included to give the reader a Our Forensic department continues to support public of the potential dangers of unauthorised access/ We continue to review and enhance our internal view of the impact of these on loyal customers and management in the implementation of the Fraud trespassing. This was an adequate measure for public controls to prevent fraud, corruption and irregularities the fiscus. We have also made recommendations for Prevention Plan, which aims to prevent and detect safety and physical security. However, in recent years within our business processes. During FY2025, our control enhancements to eliminate possible future the risk of fraud and corruption within Eskom. To there have been growing threats that confront utilities Forensic department recommended employee recurrence. this end, the Procurement Department successfully requiring more robust security measures. disciplinary action in instances where employees were implemented measures to improve controls within found to have committed wrongdoing. its procurement processes, e.g. the implementation As threats evolve and the potential impact of a of the e-Tender system for formal tendering and the security breach continues to grow, utilities need enhancement of the informal Online Tendering system. to consider a dedicated solution that combines both operational and security capabilities into a One of the Board’s priorities has been to restore single system. Physical security will continue to play BRIBERY AND good governance, strengthen internal controls and an important role in protecting substations and QUALIFICATION FRAUD promote accountability. Significant attention has moreover, technology security. CONTRACT FRAUD An employee submitted a fraudulent matric been given to preventing weaknesses and deliberate An employee at a power station accessed vendor certificate while applying for a vacancy. She was The heightened concerns on theft and vandalism of circumvention of internal controls. information and requested a bribe to be paid into appointed based on this misrepresentation essential infrastructure required an urgent renewed a family member’s bank account, in exchange and was in Eskom’s employ for ten years. The Detection of crime, fraud and corruption is inhibited thinking on physical security. Eskom substations are for the awarding of a contract to the vendor. employee applied for a more senior position after by investigative capacity and consequent management often the targets of theft or vandalism, in part due to The employee was arrested following the payment ten years. It was during this recruitment process processes. the high value of the equipment and copper wiring of the bribe. The employee was released on bail, that the fraud was uncovered. The employee contained within them. These criminal acts can lead to following a court appearance on 12 November resigned during the forensic investigation. Her The Board acknowledges that addressing these issues electrical outages, which not only cause inconvenience 2024. Eskom has since suspended the employee employment record was flagged, she was arrested, is essential to securing Eskom’s long-term sustainability but also pose a safety risk to the public. Therefore, and the case is still being adjudicated. released on bail and the case continues. and rebuilding stakeholder confidence, and recognised ensuring the physical security of substations is this as a complex, multi-year undertaking that will crucial to maintaining the reliability and safety of our demand a sustained effort. electrical grid. The Board’s interventions have been directed at To address the scourge, Eskom Distribution has improving organisational structures, together with installed commercial-grade security systems, static strengthening people, processes and systems to guards and armed response to monitor and safeguard VENDOR COLLUSION AND ELECTRICITY AND restore Eskom’s capability to effectively address our sites. The systems provide limited security ASSET RECOVERY INFRASTRUCTURE THEFT governance and compliance challenges. needs as they are often unreliable and unable to A vendor was paid more than R40 million A farm owner was arrested in Leeupoort for withstand the harsh environments that substations however, they failed to deliver goods at various illegally supplying electricity to over 600 informal IR Refer to “Fighting crime, fraud and corruption” in the and their assets are exposed to. Several Distribution sites. A representative of the vendor colluded households, causing Eskom a loss exceeding integrated report for more detail on Eskom’s efforts substations remain unguarded and without security with an employee to fabricate fraudulent goods R6.6 million. The raid, led by Eskom, SAPS, in dealing with corruption and criminality. technology. This leaves the infrastructure prone to receipts, to facilitate the payments. The supplier City Power, and private security, uncovered security crimes and exacerbates financial losses due to and employee were arrested and convicted to stolen infrastructure. The suspect was denied theft and vandalism of infrastructure. 20 years imprisonment. The Asset Forfeiture bail and Eskom supported the court’s decision, CABLE, INFRASTRUCTURE, ASSET THEFT Unit was granted permission to dispose of the emphasising the seriousness of the offence and AND VANDALISM To gain value from either technology or physical supplier’s assets to recover Eskom’s losses. the broader impact of electricity theft on national Utility companies have in the past not invested security it is important to adopt security best infrastructure and utility operations. significantly in securing their electricity infrastructure, practices and be deliberate in security design, security particularly the substations, as the public did not contracting and security embedded asset creation. interfere with the infrastructure. Historically Eskom We have identified and classified security measures substations have been unmanned and unmonitored that are either overarching or substation specific to and only protected by a fence and signs warning the assist us in managing them better. 16 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued Overarching Security Measures Substation specific security measures PUBLIC FINANCE MANAGEMENT ACT Cases pertaining to coal, diesel and oil (PFMA) COMPLIANCE • Technology: technology use such as alarm systems, • The first step to safeguarding a Our PFMA compliance status is under constant monitoring systems and movement sensors to remotely substation is conducting a vulnerability procurement fraud evaluation in accordance with our compliance raise the alarm when the security of the premises is assessment to identify potential threats risk monitoring plan. We have identified several 50 breached are put in place in certain areas, especially in areas 1 and weaknesses. Identify the risk factors 45 areas where non-compliance remains a challenge. where there are no guards or technology measures. and assess specific threats. Threat A dedicated communication channel has been created • Patrol strategies: the guards should frequently revise the analysis is critical to perform prior to the 40 to enhance communication on PFMA-related matters patrol strategies and response plans. design phase of any security. throughout the business. We are also considering 29 • Collaborations: collaborate with law enforcement agencies • Develop a comprehensive security plan 30 ways to enhance and strengthen internal controls to such as local SAPS critical infrastructure team. Disruptive that includes physical and technology improve PFMA compliance and ensure that employees operations including targeting scrap dealers is important protection measures. Physical measures 20 responsible for non-compliance with the PFMA are 16 and hotspot focused disruptions. include barriers such as fences and held accountable. Ongoing PFMA awareness and 2 training initiatives will be mandatory for all staff to gates, cameras, and lighting. Technology • Asset-creation embedded security: engage asset creation 10 guarantee their understanding of their roles and the protection measures may include and engineering to ensure embedded security technology in significance of PFMA compliance. intrusion detection systems, and future asset installations. 0 access control. Cases currently Active Total • Consequence Management: laptop policy revision is critical on the court roll cases under cases The National Treasury (NT) has permitted Eskom to mitigate the negligence of employees leaving the laptops • It is essential to train employees on the (judicial process) investigation to deviate from the requirement to disclose in the cars while they shop or at home or visiting family and 3 security protocols and conduct regular values under the Public Finance Management Act friends. drills to ensure that they know how to (PFMA), including VAT, in accordance with section respond in case of an emergency. 79 of the PFMA. NT Regulation 28.2.1 requires • Vetting: all persons on site should be vetted to minimise • Additionally, it is important to review accounting officers and authorities to disclose in their security risk. Contractors are responsible to vet their and update your security plan regularly annual financial statements, as a note, all irregular employees and to provide valid vetting certificate to Eskom. 66 to adjust to new threats as they emerge. Arrests made for expenditure incurred by their institutions, along with • Revised security strategies: as the landscape changes, 4 material losses due to criminal conduct and fruitless Audit the site and facility, operating coal, diesel and security should revise their security strategies to cater for and wasteful expenditure. Historically, Eskom has procedures and take stock of existing oil theft emerging and existing threats. reported all PFMA values without VAT and has security measures • Use outcome-based contracting to derive value maintained this practice in the current financial year. from contractors on unique security threats in each • It is critical to collaborate with law As of 31 March 2025, the total cumulative irregular operating unit. 5 enforcement agencies, private security expenditure reached R103.9 billion (2024: R103.2 and communities . Disruptive 33 operations billion, restated), with the vast majority stemming pertaining to coal from past violations. For the 2025 financial year, COAL THEFT AND FRAUD quality checks irregular expenditure amounted to R1.5 billion, of In May 2025 we appointed a contractor to provide specialised security intelligence-led investigations to monitor conducted which R0.5 billion was associated with new items. coal samples and road coal deliveries between contracted mines, laboratories, rail sidings, and Eskom power stations. This initiative strengthens fuel supply integrity through targeted investigations, surveillance, and We have established a practice and associated rapid quality checks, reducing coal theft and fraud. By ensuring consistent, compliant fuel delivery, it supports controls to address the elimination of uncondoned irregular expenditure, aiming to reduce the 21 operational efficiency, cost savings, and environmental compliance, directly aiding our sustainability goals through Illegal coal improved resource management. ongoing effects of past issues on the total irregular swapping yards expenditure balance. During the year, approval closed was granted for the removal of 26 cases, totalling R0.4 billion. 17 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued FUTURE FOCUS • Instilling a culture of self-declaration and timely Government and Regulators reporting requires enhancement. • Seeking ways to enhance PFMA compliance and Localised meetings are held in communities to address concerns, provide updates on Eskom projects, and collaborate on social investment initiatives. develop a proactive response to PFMA-related audit qualifications. • Enhance and strengthen internal controls to improve PFMA compliance and ensure that Public Participation Process (PPP) individuals responsible for non-compliance with the PFMA are held accountable. • It is intended with the above, and with innovative Conducted as part of Environmental and Social Impact Assessments (ESIAs), especially for infrastructure projects and the Just Energy Transition. approaches of big data analysis to improve our data collection, reporting and management of irregular expenditure and PFMA compliance. Digital and Media Channels IR Refer to “Upholding good governance – Strengthening PFMA compliance” in the integrated report for more Conducted as part of Environmental and Social Impact Assessments (ESIAs), especially for infrastructure projects and the Just Energy Transition. detail on Eskom’s PFMA compliance. STAKEHOLDER MANAGEMENT Stakeholder Roundtables and Dialogues Our business continuity and sustainability are strengthened by the quality of our relationships with stakeholders. As a state-owned entity with Structured discussions with key stakeholders to deliberate on policy, sustainability, and operational matters. both business and developmental responsibilities as per the shareholder compact, we engage with our stakeholders to ensure that operations are inclusive, Stakeholder relationships are characterised by mutual influence, where stakeholders shape our decisions and contribute to sustainable outcomes. transparent, and responsive to societal needs. Our approach to stakeholder engagement is guided by the principles of accountability, inclusivity, responsiveness, and materiality, as outlined in the Eskom Board approved Stakeholder Management Policy. We actively engage with our stakeholders to foster strong relationships with communities and maintain effective communication. These interactions take place through a variety of platforms, providing opportunities to identify, discuss, and address concerns that stakeholders may have. Our business units also maintain regular contact with local community representatives, holding meetings as and when required. We employ various engagement models, including structured platforms, bilateral engagements, and digital channels, to ensure broad and meaningful participation. 18 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued Government and Regulators Civil Society and NGOs Issues/discussions Influence on the organisation • Various Policy discussions and reviews Through policy directives, regulations, and oversight (e.g., from the Minister Issues/discussions Influence on the organisation of Electricity and Energy, NERSA, and Parliament), they influence our • Environmental protection These groups influence our accountability and community engagement • Energy Supply Regulatory compliance on practices on procurement, employment, and enterprise development. We emissions, air quality, water usage etc. compliance, investment decisions, tariffs, and sustainability strategies. • Social Justice support local economies and transformation. • Transparency in operations Policy Influencers Labour and Employees Issues/discussions Influence on the organisation • Policies, Laws, and Regulations We contribute to national energy policy through participation in forums Issues/discussions Influence on the organisation such as the National Energy Committee (NECOM) and the Presidential • Internal policies Organised labour and employee feedback shape our internal policies • Compliance to national and International on safety, transformation, and operational practices. Labour unions also standards Climate Commission. • Workplace safety influence negotiations and workforce stability. • Adherence to Labour regulations We also conduct proactive outreach programs like Regular feedback is obtained via quarterly surveys Investors and Lenders Just Energy Transition (JET) engagements, where conducted by our Corporate Affairs department, Issues/discussions Influence on the organisation we conduct community roadshows, provide training stakeholder forums, the local newspapers, and • Environmental and Financial sustainability, Institutions like the IMF and DBSA set ESG standards that we must meet centres (e.g., Komati), and engage international other channels. All written concerns are recorded, • Adherence to standards and regulations to secure funding. It impacts our transparency, risk management, and stakeholders and partners (e.g., Netherlands, and corresponding responses are uploaded to the sustainability reporting. Germany). We conduct early project stage Stakeholder Management Command Centre to • ESG engagements to inform our stakeholders on project ensure visibility and follow-through. planning and to mitigate risks through environmental and social impact consultations. Our strategic Our stakeholder engagement strategy approved in partnerships are mostly focused on collaborations FY2025 has been vital in improving transparency, Customers and Public with NGOs, academia, and development agencies building trust, and aligning with both national and to enhance sustainability outcomes. In our efforts international sustainability goals. Engagements focused Issues/discussions Influence on the organisation to address public safety risks, we also engage on key topics: energy transition, infrastructure • Energy Availability Public perception and customer feedback drive us to improve service delivery, communication, and responsiveness, especially during load shedding stakeholders Natjoints, SANRAL, PRASA, and development, environmental compliance, and financial • Service delivery or infrastructure upgrades. We used Campaigns like MEGA and Electricity Transnet through public safety forums. sustainability. • Systems Efficiency Safety Month to promote responsible energy use and safety. • Electricity tariffs A comprehensive feedback mechanism has been implemented to capture, address, and incorporate stakeholder concerns into decision-making processes. Feedback is primarily gathered through monthly stakeholder forums, emails and quarterly surveys Communities conducted by our Corporate Affairs department, Issues/discussions Influence on the organisation through the Eskom website and various digital • Employment, CSR, and Access to Communities significantly influence how we design and implement projects, platforms. procurement opportunities, and SDL&I particularly in terms of environmental management and socio-economic • Safety Risks, Environmental issues, and development. Their feedback ensures local relevance and social license to projects operate. 19 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued KEY STAKEHOLDER GROUPS AND ENGAGEMENT HIGHLIGHTS We have revised our Stakeholders Management INTEGRATED RISK MANAGEMENT Policy to incorporate the compliance principles Effective risk management is central to our governance outlined in King IV and the AA1000 Accountability and operations, supporting our vision, mandate, and Government and Regulators Standard. The Stakeholder Management, Stakeholder corporate objectives. Integrating it across all business Eskom briefed multiple parliamentary committees, including SCOPA, the Portfolio Committee on Engagement and Stakeholder Issue Management processes ensures consistent and proactive risk Electricity and Energy, and the Standing Committee on Appropriations, on issues ranging from prepaid Process Control Manuals were updated and aligned to identification and management, including ESG risks meter resets to transmission infrastructure and environmental compliance. The Minister of Electricity the AA1000SES principles (2015). and opportunities. We have established an integrated and Energy participated in several Eskom events, including the launch of the NTCSA, the 40th approach to managing risk that has been informed by Our media and public sentiment analysis indicated international best practice and aligns to ISO 31000. anniversary of the Koeberg Nuclear Power Station, and the rollout of Electric Vehicle (EV) infrastructure. that the suspension of loadshedding, the legal Eskom actively engaged in NERSA’s MYPD6 consultations and briefed stakeholders on tariff applications establishment of NTCSA, and infrastructure rollouts Our risk reporting aligns with Eskom’s Risk and the Draft Market Code. helped boost public sentiment about Eskom, although Management Standard and the Risk and Resilience the concept of load reduction remains a challenge as Policy. Executives across Group, Divisional, Subsidiary, many South Africans interpret it as synonymous to and Functional levels are accountable for managing International Partners: loadshedding. risks and resilience, monitoring progress, and Eskom engaged in high-level meetings with delegations from the UK, China, the Netherlands, Germany, reporting quarterly to EXCO and Board committees. Zimbabwe, and Zambia. These meetings, which focused on energy cooperation, Just Energy Transition We will continue to strengthen stakeholder trust (JET), and infrastructure investment, showcased Eskom's global influence and commitment to sustainable through transparent communication, expand our To ensure regular oversight and alignment to our energy. Eskom's participation in the COP29 Global Climate Summit, the Innovate4Climate Conference, green energy portfolio and infrastructure, secure governance processes, we continue to present the and the ESG Africa Conference further solidified our position as a key player in the global energy sustainable funding models for transmission and Risk and Resilience report quarterly to Eskom’s transition, garnering international support for JET. generation, and foster inclusive growth through governance structures, including the EXCO Risk and community partnerships and educational outreach. Sustainability Committee, Board Risk Committee, and the Board. Industry and Investors: Eskom’s executives engaged with investors at the SA Tomorrow Investor Conference, Moody’s Risk Summit, and the Standard Bank Climate Summit. Topics included financial turnaround, grid development, and green finance. Agreements were signed with Sasol for gas-to-power initiatives and with Golden Arrow Bus Service for the development of electric vehicle infrastructure. Communities and the Public: Our successful engagement with communities and the public is a testament to our commitment to inclusivity and transparency. The educational campaigns, such as Electricity Safety Month and the “Make Eskom Great Again (MEGA)” campaign, reached millions through radio, television, and online platforms, fostering a sense of shared responsibility. The Eskom Expo for Young Scientists and the International Science Fair celebrated innovation and STEM education, with over 300 finalists taking part, further strengthening the bond between Eskom and the public. Environmental and Social Responsibility Our commitment to environmental and social responsibility is unwavering. The Air Quality Offset Project and the launch of Phase 2 in Gert Sibande Municipality serve as a testament to this. Eskom's engagement with the Department of Forestry, Fisheries, and the Environment on emission proposals further demonstrates our dedication to sustainable practices. Initiatives such as the repurposing of the Grootvlei Power Station and the EXCO Road project at Kusile not only showcase our commitment to sustainable development but also the contribution we make to local economic growth and upliftment. 20 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued EXTERNAL ENVIRONMENTAL SCAN: KEY IMPACTS ON ESKOM Fiscal Measures Unbundling and Governance Tariff and Regulatory Decisions Environmental Compliance and Budget Announcements Challenges NERSA MYPD 6 Approval NERSA MYPD 6 Approval 2025 Budget Speech (12 Mar 2025): Delays in Legal Separation: MES Exemptions (31 Mar 2025): (30 Jan 2025): (August 2025): • Final debt relief phase: • Caused by financial/legal complexities • Duvha and Matla: Exempt until 2034. • FY2026: 12.74%, • Response to MYPD 6 court review • R40 billion in 2025/26, R10 billion in • Rising municipal debt and ineffective relief • Kendal, Lethabo, Majuba, Matimba, • FY2027: 5.36% application 2028/29 programs Medupi, Tutuka: Five-year exemptions • FY2028: 6.19% • Additional allowable revenue of R12 billion • New PPP regulations effective 1 June 2025 • Legislative need to establish NewCo until April 2030 for FY2027 and R23 billion for FY2028 • Conditions include: • All below Eskom’s original requests • Transmission expansion: • Eskom’s parent company overseeing • Recovery of the remaining R19 billion still Generation, NTCSA, NEDCSA • Emission reduction plans RCA Settlement (9 May 2025): • RFI followed by RFP for multi-line to be determined (Distribution) transmission package. • Health interventions • Court order resolved RCA applications • Standard tariff increase is estimated to rise • Credit guarantee vehicle launching in 2026 • NTCSA end-state adds complexity • Air quality monitoring for FY2015–FY2021 from 5.36% to 8.76% for FY2027, and from to de-risk projects • Our response: • Data-free alert apps • NERSA to determine recovery timeline 6.19% to 8.83% for FY2028 • Improve Distribution’s financial position • Environmental health specialists Our response: Our response: Legislative and • Engage shareholder ministry • Expanded community health screenings • Review approved increases • Accepted by Eskom Market Reform • Refine unbundling strategy • Explore opportunities to support Electricity Regulation Amendment Act: • Maintain stakeholder communication operational needs, infrastructure demands and financial sustainability • Introduces competitive electricity market • Establishes independent Transmission System Operator • Potential revenue impact but opens efficiency and innovation opportunities 21 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued YEAR-END (FY2025) RISK LANDSCAPE The management of our risks is progressing, driven ENTERPRISE RESILIENCE The key risks facing the divisions and subsidiaries are reflected in the heat map below: by the continuous interrogation of risks, self- The Global Resilience Partnership define resilience assessments, and peer reviews. as the capacity to live and develop amidst change Tolerable risks Unacceptable risks and uncertainty. In Eskom we refer to resilience 5 7 MAJOR RISKS FACING THE ORGANISATION capabilities that should be cultivated, as the ART 5 risks R&S GIS 3 2 Our financial sustainability is under pressure due to of resilience – the ability to Anticipate and adapt 6 Dx rising municipal debt, energy losses, and declining 9 Gx NTCSA to change, Respond and recover from disruption, sales, impacting Eskom Holdings’ liquidity. Fraud and Transform amidst changes in context. We have 10 and corruption in Eskom could further deteriorate developed an Enterprise Resilience Framework, 5 2 risks 8 risks 1 8 NTCSA if not effectively managed. This will ultimately Dx GT and capabilities to ensure continuity of operations, lead to continued financial losses, operational and to adapt, and transform to ensure organisational Consequence rating 4 6 reputational damage and Eskom’s moral fibre being sustainability and resilience. eroded. Gx GIS 4 21 risks (incl. 1 x NTCSA) 11 NTCSA Resilience is critical for high consequence, low Cybersecurity remains a key risk for Eskom due probability events, such as a national blackout. An to legacy systems incompatibility to advanced end integrated approach is critical to effectively prepare 3 15 risks 4 risks point cyber security software. These vulnerabilities for and respond to these incidents particularly expose Eskom to threats such as credential theft, when their impacts cascade across functional and ransomware, spyware, and regulatory breaches. geographic boundaries. To address these challenges 2 66 Acceptable risks Divisional risks our emergency response structures are fully (including 3  efer to “Mitigating risk and maintaining resilience” in IR R integrated at national, provincial and divisional/ NTCSA P1 risks the integrated report for further detail on Eskom’s risk subsidiary levels. 1 and 1 P2 risk) appetite statements, strategic risks and treatments. A B C D E GOVERNANCE OVERSIGHT Likelihood NATIONAL PROVINCIAL DIVISIONAL Consolidated view of unacceptable risks for the year 1. Energy Losses caused by illegal connections, electricity theft and ghost vending. 2. Financial sustainability is compromised, caused by growing debt (non-payment of municipal bulk accounts) ENTERPRISE RESILIENCE FRAMEWORK and declining revenues. 3. Loss of license to operate due to environmental performance and regulation/legislation non-compliance. 4. Fraud and corruption in Eskom is not under control and could further deteriorate, caused by unethical P&SCM practices and behaviors and ineffective P&SCM controls. 5. Eskom’s inability to meet societal and moral duty to protect the health and well-being of those affected by Integrated Business our operations. Disaster Emergency Continuity Management 6. Group Security's inability to respond and secure its assets during a disaster. Response Management 7. Possible cyber-attacks due to current endpoint security technologies not adjusted to targeted and advanced cyber security threats on both IT and OT Systems. INTEGRATION ACROSS FUNCTIONAL 8. Inability to curb the increase in serious and violent security incidents affecting the transmission operations. AND GEOGRAPHC BOUNDARIES To be updated 22 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued Preparedness and response plans rely on business readiness for the acute impacts of climate change is In support of national efforts and coordination, Eskom The figure below depicts the Disaster Management continuity and disaster management. Divisional not optional, extreme weather events are increasing provides disaster impact reports detailing response Act (DMA) alignment with the SDGs: resilience is anchored by business continuity in frequency and Eskom’s resilience to these must and recovery, to the national and provincial disaster management, with each function accountable for improve. A case study on Eskom’s response to the management structures, the National Joint Flood SDG Disaster Management Act Alignment maintaining its critical processes. Our disaster extreme snow event of September 2024 is highlighted Coordinating Committee and the Inter-Ministerial management efforts focus on integrated plans aligned under the climate change section of this report and Committee on Disaster Management. Prioritises vulnerable communities in with approved national disaster priorities. During demonstrates the integration of response structures disaster relief and recovery FY2025 these disaster priorities were reviewed, and an across functional and geographic boundaries. updated list will be submitted for governance approval. Requires municipalities to include disaster A management in spatial development Climate hazards and extreme weather, have NTICIPATE frameworks widespread consequences for the electricity sector in DAPT terms of physical and operational impacts, security of supply, demand to meet end user requirements, and Emphasises climate-related hazard associated costs and economic losses from damage reduction and adaptation caused by these extreme events. Building resilience is therefore critical to withstand climate driven Health services must be integrated into disruptions, ensuring reliable power supply. § Anticipate - having the foresight § Respond - decisively respond to threats § Transform - reimagine and reshape & situational awareness to enable and incidents to contain the impact, organisational systems to enable renewed disaster response planning preparation and reduce the likelihood of severity and duration of disruption and growth, resilience, and long-term value Our Climate Change and Environmental Disasters surprise ensure coordinated actions across the creation working group oversees the integrated preparedness Eskom Group § Adapt - proactively adjust strategies and Promotes coordination across government, across Eskom based on divisional and subsidiary behaviours in response to change to § Recover - restore and stabilise critical NGOs, and the private sector climate adaption plans. These plans integrate the sustain critical outcomes functions after disruption to strengthen requirements of the Disaster Management Act and systems and build back better Framework, the Climate Change Act, and Eskom’s Integrated Risk Management methodology. DISASTER MANAGEMENT AND SDGS The requirements are listed below from country level In terms of the Eskom Integrated Risk and Resilience From a policy and legal perspective, South Africa policy and legal perspective: Management Procedure for Climate Adaptation integrates the Sustainable Development Goals • Integrated and coordinated disaster risk reduction Planning, there is a requirement to conduct simulation (SDGs) into disaster management through the across all levels of government (national, provincial, exercises to test and review response arrangements. Disaster Management (DM) Act (Act No. 57 of 2002, municipalities) These are done to continuously improve as amended) and the National Disaster Management • Focus on prevention and mitigation, aligning preparedness arrangements based on lessons learned Framework (NDMF) of 2005. These key instruments directly with SDG 11 (resilient cities) and SDG 13 from these exercises. embed global sustainable development principles, (climate action). including the SDGs. • Institutionalises the National Disaster Management During FY2025 our national emergency simulation exercise focussed on testing the contingency plans Eskom, as an organ of state, is required to comply Centre (NDMC), responsible for: (disaster plan, business continuity and site-level with the DM Act and the NDMF. The requirements – Strategic planning emergency) for responding to various climate/ are specified in our Enterprise Risk and Resilience – Early warning systems extreme weather-related events. This country-wide Policy and Eskom Disaster Management Standard. – Public awareness and Disaster funding exercise (Exercise Terra), held on 6 February 2025, These are implemented in Eskom through the included Eskom’s 53 emergency response teams and Enterprise Resilience Programme by the Divisions, had over 700 participants at every major Eskom site Subsidiaries and Provinces, and integrated structures and power station. The scenario was of multiple like the Disaster Management Working Groups, simultaneous extreme weather events across the Provincial Resilience Teams (PRTs) and Emergency country and the likely impacts that our emergency Response structures. All guidelines and templates teams and staff would have to manage. The learnings are aligned to the requirements; however, we do not from this exercise are being used to improve implement community resilience but organisational emergency preparedness and response to extreme resilience. weather events and disasters. A key finding was that 23 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued The NDMF operationalises the DMA and is fully aligned with global frameworks like the Sendai Framework for There is a confluence of focus on resilience, sustainable development, risk reduction, and climate adaptation Disaster Risk Reduction (2015-2030), the SDGs and the Paris Agreement on climate change. The requirements among several international and national legal frameworks. To operationalise climate resilience Eskom has below from the NDMF are built into our Enterprise Resilience Programme. simplified what is required from operating divisions and subsidiaries by integrating the compliance requirements for the Disaster Management Act and Climate Change Act into climate adaptation planning. Integrated How it supports preparedness and oversight of adaptation planning across the Eskom Group will contribute to sector adaptation NDMF priority SDG link SDG delivery Enterprise Resilience Programme plans and national adaptation plans. Priority 1: Strengthens • Emergency Response Structures Integrated governance and • Governance Structures  efer to “Mitigating risk and maintaining resilience” in the integrated report for further detail on Eskom’s risk appetite IR R Institutional coordination statements, strategic risks and treatments. • Integration with National, Provincial and Local capacity Disaster Management Centres and Security Structures QUALITY MANAGEMENT • Stakeholder Management A Quality Management System is a foundation of Eskom’s corporate culture and values, which promotes a • Emergency Response Partners culture of constant improvement with the goal of attaining successful and efficient business operations. Quality Management aims for operational excellence while ensuring compliance with business management system Priority 2: Enables climate • Disaster risk assessments are addressed at requirements through the Quality Management value chain. Disaster risk smart planning and National, Provincial, and Sites following the assessment and urban resilience IRM methodology monitoring • Climate change and resilience risk assessments for the vulnerability assessments for the climate change adaptation plans Priority 3: Prevents loss of life, • Disaster risk reduction is regarded as controls Business Implementing Best practice, Disaster risk protects and treatment plans (includes climate change strategy and the quality lessons learnt Implementing Continual reduction infrastructure adaptation plans) objectives value chain etc. ISO 9004 improvement Getting basics Achieving and Being effective, Attaining Quality, a way of right maintaining efficient and operational life! compliance and productive excellence Priority 4: Safeguards health, • Disaster contingency plans for the identified certification Preparedness water, sanitation disaster risks are developed and response during crises • Divisions have business continuity plans, Eskom’s Corporate Quality Management is responsible for ensuring that Eskom’s line divisions achieve and Standard operating procedures to support maintain certification in accordance with the ISO 9001:2015 Quality Management System (QMS) standard. This preparedness, response, and recovery oversight extends to all support functions and service providers, reinforcing Eskom’s commitment to compliance • Eskom DM Plan is submitted to the NDMC and industry best practices. Demonstrating this dedication, Eskom Risk and Sustainability successfully achieved ISO 9001:2015 recertification in March 2025, further strengthening the quality governance framework. Priority 5: “Build back better” • This is included in the disaster contingency Recovery and to reduce future plans Ongoing assurance is provided through Quality Management System (QMS) Internal Audits. QMS internal audits Rehabilitation vulnerabilities • Lessons learnt from recent disasters and the are essential for ensuring continuous compliance, operational efficiency, and process improvement in Eskom. Eskom national exercises will support the These audits provide an independent and structured evaluation of quality policies, procedures, and controls, “build back better” helping to identify gaps, risks, and non-conformities before they escalate into major issues. By systematically assessing adherence to standards such as ISO 9001:2015, internal audits drive accountability and transparency, reinforcing a culture of quality excellence. Additionally, they enable data-driven decision-making by providing insights into performance trends, corrective actions, and opportunities for improvement. Quality Management implements an internal audit framework to strengthen regulatory and governance compliance and enhances stakeholder confidence by demonstrating a commitment to quality assurance and continuous improvement. 24 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Governance continued Quality Management in collaboration with Eskom’s Group Technology, has appointed an external service provider as an implementation partner to expedite the automation and address migration issues with the Document and Records Management (DRM) system. This work entails preparing, evaluating and cleaning the available data as well as organising the migration Monthly Quality Themes World Quality Day National Quality Week plan and offering continuing assistance. The records management function is also aligned with the National To Promote “Right First Time” mindset Quality leveraging compliance to enhance Quality with a Purpose Archives and Records Service of South Africa Act 43 of Share lessons learned and best practices performance Reflect SAQI’s theme 1996 (NARSSA Act) which stipulates the management Reduce failure Impacts Drive awareness of global quality principles Align operations and projects - national quality and preservation of government records, to ensure Align to international standards goals access to a national archival heritage and promote transparency and accountability. To improve documentation management, compliance, and policy efficiency, the Company Secretariat Function and Eskom Document Centre submitted a proposal to the Eskom Holdings Exco on the 31 March 2025 that was approved: to create a systematic procedure Quality Webinars (with SASQ) for the evaluation and simplification of the Eskom Eskom Quality Conference and Webinar The Quality Professional Documentation and Archiving Policy. This effort seeks SHEQ Newsletters Role of quality professionals (with SASQ) to further Eskom’s dedication to align with industry SHEQ integration in daily operations Benchmarking best practices best practices and strong governance standards. #Quality Matters Encourage OHS, Environmental, and Quality Continual Improvement for External Providers Promote thought leadership compliance Quality collaboration with contractors and Furthermore, Quality Management is part of Support Eskom’s vision through partnership suppliers Feature expert insights and leadership talks implementing Eskom’s Integrated Governance, Celebrate Quality Month with service Elevating service/product quality Risk, and Compliance (IGRC) system to streamline its operating, reporting and auditing processes to minimise non-conformities and foster a culture of To enhance the effectiveness of Eskom’s Quality Management initiatives, the business continues to implement strategic programs focused on training, stakeholder ethical leadership and continuous improvement. engagement, communication, and quality awareness. These efforts are designed to foster a culture of operational excellence, drive continuous improvement, and Ultimately, this will allow the business to drive optimise overall business performance. sustainable growth, safeguard stakeholder interests, and maintain a competitive advantage in an evolving We are also augmenting our quality measurement of compliance with ISO 9001:2015 standard, our updated quality framework integrates key operational KPIs (Customer regulatory landscape. Management, Documentation Management, Supplier Quality Management, Non-conformity Management and Technical Performance) that reflect the broader effectiveness of Quality Management Systems. This enhancement provides a more comprehensive view of compliance and performance, enabling businesses to refine their processes and drive operational excellence. 25 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management Key Environmental Aspects Legal Particulate Ash Water Use Biodiversity Contravention Emissions Beneficiation Incidents​ Specific water use improved in FY2025: Relative particulate emission in FY2025 Power stations generate around 34mt of Red data bird mortalities decreased to Decrease FY2025: 65 (FY2024: 68). No 1.40ℓ/kWh sent out (FY2024: 1.43ℓ/kWh 0.64kg/MWhr sent out (FY2024: 0.79kg/ ash annually, of which only 7%–10% is 210 (FY2024: 258)​ tolerance of legal non-compliances sent out) MWhr sent out) beneficiated.​ Protecting endangered birds by scaling up Legal contravention incidents (risks on Experienced challenges on water leaks Used in construction, back filling of mines infrastructure retrofits and deploying FBS) improved to 0 in FY2025 and dam overflows​ and roads real-time monitoring system (FY2024: 7) Eskom’s environmental strategy is a multi-faceted, long- materiality in terms of our Environmental, Social and operations. The success of these sustainability focused sent out), specific water consumption (1.40ℓ/kWh term framework premised on two strategic objectives Governance (ESG) framework and plan. interventions has been observed in the preceding sent out), environmental legal contraventions incidents of reducing the environmental footprint of Eskom’s half-decade where an improvement in environmental reported because of significant failure of business activities and positioning Eskom as an environmentally For us, sustainability includes implementing Circular performance was observed, specifically with respect systems (FBS-0), and red data bird mortalities (210). sustainable utility. It seeks to ensure sustainability Economy (Circularity) principles, thus resulting in to relative particulate emissions, specific water-use and through balancing pollution management (air emissions, efficiency throughout the value chain, including the environmental incidents. Despite implementation of With respect to containing carbon emissions land management, water systems and biological systems divisions and the subsidiary companies. Adopting improvement plans, we have still encountered challenges and reduce dependency on coal fuel, Eskom is control), diverse clean energy deployment, robust circularity supports the organisation’s sustainability in meeting our compliance obligations at some of our aggressively executing: (i) development of a medium- monitoring and evaluation, community partnerships, ambitions with respect to managing the finite operating units (including power stations and the lines term carbon footprint target and roadmap; (ii) and strategic governance. The objectives are achieved natural resources in the form of water utilisation, businesses). Additionally, environmental performance is establishing a renewables company (Eskom Green); by informed decision-making to avoid harm and land use practices, biodiversity enhancement, waste also affected by strategic decision-making related to the (iii) implementing our Eskom transition strategy; (iv) legal liabilities; achieving legal compliance through management to reduce landfilling, better air emissions energy crisis and the energy trilemma. implementing repurposing initiatives; (v) clean energy effective systems and monitoring; reducing emissions management, improving grid access for additional build plan; and (vi) research and demonstration of to meet health and regulatory standards; conserving capacity, as well as social issues while identifying OUR APPROACH TO REDUCING OUR clean energy technologies. water resources and minimising liquid discharges; both risks and opportunities. The organisation has ENVIRONMENTAL FOOTPRINT improving waste management through reduction, implemented systems to minimise our environmental We have a multifaceted approach that includes reuse, and recycling and protecting ecosystems through footprint, while optimising the power delivery optimising our operations for efficiency by minimising responsible land and biodiversity management. processes and social needs. We undertake assurance emissions, improving water consumption, enhancing practices, including that of auditing and monitoring of our biodiversity footprint, implementing energy Our responsibilities for sustainability and environmental our interventions for reducing our environmental risks efficiency measures, investing in renewable energy management, which are entrenched in the Corporate and identify opportunities for improvement. These sources and constantly empowering Guardians’ Plan, our Environmental Strategy, the Eskom processes are executed towards our values of Zero culture to reduce our environmental footprint. SHEQ Policy, and the certified ISO Environmental Harm and Sinobuntu to ensure our adherence to the Sustainability is driven through science-based data Management Systems (EMS), among others, have Duty of Care principles. collection and objective reasoning for effective elevated the organisation’s focus from legal compliance decision making. In this regard, specific environmental to Duty of Care. We execute this responsibility by In executing our operations, we have entrenched metrices/KPIs have been developed and monitored, driving sustainable practices and reporting on double environmental requirements, as well as management including relative particulate emissions (0.64kg/MWh systems, as essential elements to sustain business 26 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management continued ENVIRONMENTAL PERFORMANCE as well as insulating houses with ceilings to improve Our Eskom of tomorrow will be one with lower indoor air quality. Significant progress is being made atmospheric emissions and with less impact on the on the various projects and this is reported annually. health of the South African people, and the general To-date, we have completed phase 1, in which 3505 environment. In our Generation business, we cultivate and 2086 houses were retrofitted at kwaZamokuhle a culture centred on environmental compliance, and eZamokuhle, respectively, in the Highveld Priority prioritising it as a cornerstone of sustainable asset Area. To expand this programme, Eskom has approved management to continuously elevate performance. a contract for clean-ups to be done at Sharpeville (Vaal We have seen an improving trajectory in some KPIs, Priority Area), as well as Phase 2 project near Tutuka however further effort is required to meet other and Kendal power stations. We aim to provide for internally set targets. further emissions offsets phases in future. Our coal-based generation fleet emits Particulate We carried out targeted maintenance on our Matter (PM), Nitrogen dioxide (NO2), and Sulphur generating plants, although our particulate emissions dioxide (SO2), which can affect human health and per unit of electricity sent out still fell short of our wellbeing if not well managed. To achieve this, we established targets. This can be attributed to poor continually implement measures for reducing the performance at some coal-fired power stations in the emissions in striving to comply with South African ash and dust handling plant, poorly performing and air quality legislation. We deploy emission reduction damaged electrostatic precipitators (ESPs), and poor plans with three phases, namely, (i) power stations sulphur conditioning (SO3) plant. to operate and maintain the technologies installed to reduce pollution, (ii) retrofit older plant with ENVIRONMENTAL COMPLIANCE AND the appropriate emissions reduction technologies GOVERNANCE South Africa’s Minimum Emission Standards (MES) applications for Majuba, Tutuka, Kendal and Kriel (mentioned below), and (iii) implement air quality We have adopted a “no tolerance to non- prescribe limits from gaseous emissions of SO2 and were partially approved. We submitted an appeal to offset projects at strategic local communities. compliance to legislation” approach to environmental NOx, as well as PM for both existing plant and new the DFFE which suspended the decision and allowed management, with six environmental goals guiding plant, .including target dates for meeting compliance. operations to continue. Emissions management includes use of technological us in this regard. Compliance is central in sustaining The objective of the MES is in line with the Bill of solutions, namely, electrostatic precipitators and Rights, as enshrined in the Constitution of South The Minister established a Consultative Forum during Eskom’s licence to operate and the measures to bag filters for particulate matter, low Oxides of Africa. The MES seek to protect people and the 2022 to advise her in respect of the MES appeals. ensure compliance are implemented within the Nitrogen (NOx) burners for NOx, and flue gas environment by providing reasonable measures Its broad terms of reference required it to consider operations, with corporate functions providing desulphurisation plant for Oxides of Sulphur (SOx). for the prevention of pollution and ecological environmental, climate change, health, security of functional leadership and assurance. These projects are being implemented under our degradation, and to ensure ecologically sustainable supply and legal requirements. In November 2022, Emission Reduction Plan (ERP). We expedite air development while promoting justifiable economic the Forum held a series of public consultations to quality improvement by parallel execution of the ERP Our environmental goals and social development. obtain stakeholder and public input in respect of the programme., and the air quality offsets programme MES appeals. Following submission of the MES panel’s where applicable. Our operations also result in 1 Informed decision- 4 Conserving water In 2020, Eskom applied to the Department of recommendations, the DFFE Minister announced a fugitive dust emissions (low level) emanating from making to avoid harm sources and Forestry, Fisheries and Environment (DFFE) for favourable decision to Eskom in May 2024. The decision site roads, coal stockyards, ash disposal facilities, and and legal liabilities minimising liquid suspension, alternative limits and/or postponement required Eskom to submit exemption applications general construction activities. In these situations, we discharges under the MES based on an internally approved ERP. by 10 December 2024, and this date was achieved. 2 Achieving legal The ERP identified stations that would be retrofitted The Minister of DFFE issued a decision that grants make use of our certified environmental management compliance through 5 Protecting ecosystem with emission reduction technology and the planned limited exemptions to Eskom power stations, on systems (EMS) by following the best practicable effective systems and through responsible retrofit dates. The DFFE issued a favourable decision 31 March 2025. The decision came with plant-specific environmental option (BPEO). This can be spraying monitoring land and biodiversity to Eskom in November 2021. The favourable conditions, which are being implemented. dust with water or environmentally friendly chemical management postponement decision was issued for power stations bonding agents and/or installing vegetation cover. 3 Reducing emissions shutting down by 2030, namely Grootvlei, Arnot, IR Refer to "Reducing our environmental footprint – Our air quality offset programme, which is executed to meet health and 6 Improving waste Hendrina, Camden, Komati, Acacia and Port Rex. Compliance with atmospheric emission licenses" in in phases, addresses waste burning, transitioning regulatory standards management through However, Eskom’s request for postponements at the integrated report for more detail on emission households from coal use to liquid petroleum gas, reduction, reuse and Matla, Duvha, Matimba, Medupi and Lethabo were performance and compliance. recycling all declined in their entirety by the National Air Quality Officer (NAQO) of the DFFE. Postponement 27 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management continued MANAGING WATER CONSUMPTION Ankerlig gas turbine sites. We also apply a risk-based CIRCULAR ECONOMY Eskom is a strategic water user, with supply assured internal methodology to assess groundwater impacts Circularity is central to our sustainability ambitions and is embedded in our Corporate Plan, Environmental by the Department of Water and Sanitation (DWS) on human health and the environment. Where risks Strategy, and operational processes. We are currently developing a Circular Economy Position Paper to formally through Water Use Licences (WULs) and General are identified, targeted monitoring is implemented to entrench this approach across the business. While this paper will provide strategic direction, circularity has Authorisations (GAs) issued under the National enable early detection and effective mitigation. long been a part of Eskom’s operations reflected in our focus on resource efficiency, operational optimisation, Water Act (1998). The Department uses annual and reduced reliance on landfilling. The position paper also promotes collaboration with industry and society stochastic analysis, per catchment, to understand LEGAL CONTRAVENTIONS to support the goals of the National Waste Management Strategy, as set by the DFFE. By advancing circular the risks relating to low and high-water users. Eskom has established an asurance model (the Eskom practices, we aim to drive innovation, reduce environmental impact, and contribute to a more sustainable and Combined Assurance Model), which is a governance resilient South African economy. Acknowledging the high-water consumption of structure that provides strategic advice and oversees our coal-fired power stations, we have adopted compliance. This model has five (5) levels, starting a circular approach to water management. Our from operations execution (at the project level) to water efficiency plan focuses on maintaining high Board (at the Executive level). Collaboration with key Reduce/ water-use efficiency across all stations, achieving stakeholder is central in our processes, and we invest minimal intake zero liquid effluent discharge, securing water supply time to engage with authorities and staff capacity for generation needs, and ensuring compliance building to manage compliance with environmental 1 with WUL conditions. Each power station has a legislation. As an organisation that has a commitment customised water management plan, monitored of “No tolerance to legal non-compliances”, we Dispose Remanufacture through station-level execution committees continuously inculcate a culture of compliance and Optimise extraction and overseen by the Generation Environmental accountability to maintain our sustainability objectives. of natural resources, Compliance Steering Committee (GECS). minimise purchases A total of 65 environmental legal contravention In FY2025, we improved our specific water use to incidents occurred during FY2025 (FY2024: 68). 1.40ℓ/kWh sent out (from 1.43 ℓ/kWh sent out Although an improvement from 2024, we consider 6 Miminise Harvest 2 in FY2024). However, challenges persist, including disposal parts for this number high and unacceptable and strive to low load factors, operational water leaks and dam new uses reduce these legal contraventions annually. We also overflows and high raw and demineralised water usage categorise legal contravention incidents on their risks due to system constraints. Despite our commitment as failure of business systems (FBS), and this category to legal compliance, 33 water-related contraventions has improved to zero in FY2025. occurred in FY2025 (up from 30 in FY2024). WASTE MANAGEMENT SURFACE WATER MANAGEMENT We are committed to advancing sustainability in waste Recycle Refurbish/repair Efficiency To assess ecological impacts, Eskom’s Research, management, going beyond legislative requirements. Testing and Development team conducts bi- This commitment is embedded in our Environmental annual biomonitoring of rivers and streams around Strategy, which includes the goal to “improve waste Convert Maintain operational sites. In FY2025, assessments were management through reduction, reuse, and recycling.” conducted at 15 power stations and Underground We achieve this by integrating circular economy 5 waste to raw and extend 3 material equipment Coal Gasification (UCG) sites, including: chemical principles into our operations. Circularity is realised lifespan analysis, macroinvertebrate and fish surveys, habitat through recycling of various waste streams, selling Repurpose assessments and toxicity testing. Findings are compiled ash and gypsum from coal-fired power stations for materials/share into site-specific reports submitted to authorities, reuse, beneficiation initiatives such as ash-based resources guiding mitigation strategies and supporting river road construction projects, mine backfilling using ecosystem health. ash, replacing wooden poles with geopolymer poles made from ash and soil amelioration projects. These GROUNDWATER MANAGEMENT efforts reflect our commitment to reducing landfill 4 Aligned with the National Water Act, we maintain a dependency and promoting resource efficiency across proactive approach to managing groundwater impacts. Reuse/redistribute our operations. Eskom has monitored groundwater quality for over 30 years. In FY2025, monitoring was conducted at all coal-fired stations, Koeberg nuclear station, and 28 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management continued PHASING OUT OF POLYCHLORINATED We see coal ash as a valuable resource not a waste. BIODIVERSITY BIPHENYLS (PCBs) Over the last decade ash beneficiation has been limited Biodiversity is a material focus area for us, After having phased out PCB, we completed and to applications in cement as an extender. Ash sales for particularly regarding the interaction between submitted the final PCB audit report in 2025, to the beneficiation declined between the financial years 2022 our infrastructure and ecosystems. Guided by our DFFE in compliance with regulations to phase-out the – 2024 due to the weak construction market. However, Environmental Strategy and the goal of “protecting use of PCB materials and PCB contaminated materials. in FY2025, there was an increase in demand for ash ecosystems through responsible land and biodiversity including legacy ash, for beneficiation applications in the management,” we aim to enhance biodiversity and COAL ASH BENEFICIATION construction of the cushion layer of waste dam liners as build resilience to climate change. Our coal fired power stations generate around well as in pilot scale research projects. 34 million tonnes of ash annually, of which only 7% We actively support national efforts to reduce -10% is beneficiated, with the remainder stored in Our focus areas for ash beneficiation biodiversity loss from human activities and restore ash disposal facilities. In 2018 the DFFE introduced South Africa’s ecological integrity. Internally, we exclusion regulations allowing industries to apply for a • Production of concrete poles as an alternative monitor infrastructure impacts on threatened waste stream exemption if the waste was repurposed. to wooden electricity distribution poles bird species. In FY2025, red data bird mortalities • Use of ash in soil stabilisation to improve soil decreased to 210 (FY2024, 258), reflecting our We successfully applied to exclude fresh ash, quality and strengthening foundations commitment to our Zero Harm value, preventing weathered ash and gypsum from the waste • Mine backfilling to eliminate leaching harm to people and the environment. classification when beneficiated in applications • Use of ash-based shotcrete material for the spray like cement production (geopolymer concrete), on protection of containers and buildings road construction, brick manufacturing, mining • Use of ash in road construction (pilot road (mine backfilling, zeolites, mineral extraction, fibre SUSTAINABILITY THROUGH INNOVATION construction project at Kusile Power Station production) and environmental applications (acid mine In a first for South Africa, we are leading the way in FY2025) drainage treatment, soil amelioration). in sustainable practices by incorporating recycled legacy coal ash into road construction at Kusile Power Station in Mpumalanga: • New access road built for the construction of a new coal conveyor, stretching 791 metres • 2904 tonnes of legacy ash per kilometre of road • Replacing traditional cement with recycled ash • Designed to support the daily passage of 1 200 to 1 600 trucks • Sustainable and durable alternative to traditional cement, adhering to conventional road-building standards A key concern is the threat to South Africa’s vulture • Contributing to a reduction in carbon dioxide and other vulnerable bird populations, especially from emissions (avoided cement use) powerline collisions and electrocutions. With over • Building the circular economy 400 000km of power lines across diverse ecosystems, Finding additional applications for coal ash not only we are committed to protecting avian wildlife, reduces the environmental footprint of ash disposal including critically endangered species such as the facilities but also minimises fugitive dust. As we seek Cape, White-backed, and Lappet-faced Vultures. new uses for fine fly ash from our newer power These birds play an important ecological role, and stations, the potential environmental and socio- their protection is a national conservation priority. economic benefits continue to grow. This builds For over 30 years, we have partnered with on the legacy of earlier power station closures that conservation leaders such as Vulpro, the Endangered repurposed clinker ash for bricks to construct many Wildlife Trust (EWT), and BirdLife South Africa to homes; these dumps are now almost depleted. mitigate infrastructure impacts on avifauna. These partnerships support a range of proactive measures: 29 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management continued OUR IMPACT ON AMBIENT AIR QUALITY Mitigating infrastructure impacts on avifauna Air pollution poses serious global health risks, especially from long-term exposure to fine particulate matter Retrofitting >23 000 high-risk structures fitted (PM2.5), which contributes to cardiovascular and respiratory diseases. Key pollutants like SO2, NO2, PM10, and with bird flight diverters and raptor PM2.5 harm both humans and the environment. Coal-fired power stations and industries emit harmful substances, protectors since 2016 intensifying health and climate concerns. Monitoring ambient air quality is vital for assessing pollution, guiding policies, and protecting communities. Eskom operates monitoring stations across South Africa's three Air Quality Risk-based Avian risk maps guide mitigation in high-risk zones. Priority Areas to measure compliance, support research, and and evaluate the impact of offset interventions. modelling These stations help track pollutant levels, assess impacts, and inform planning to ensure healthier, more Training and Field staff receive regular training, and sustainable environments. reporting we engage communities in incident reporting Compliance stations are placed upstream and downstream of coal-fired power stations, offset stations near Innovation Develop and test customised collision sensitive receptors, and research stations where baseline data is collected. The main objectives of these stations mitigation devices tailored to local are to measure pollutants against national standards, support environmental research, evaluate pollution control conditions, with pilot project currently effectiveness, monitor long-term air quality trends, and provide data for future planning and modelling, particularly active in regions such as the Karoo to assess the impact of emissions from Eskom’s operations and guide sustainable environmental management. Compliance All new powerline projects undergo biodiversity-sensitive environmental assessments As a key partner in the South African Biodiversity Management Plan (BMP) for vultures, we are intensifying efforts to protect these endangered birds. By scaling up infrastructure retrofits and deploying advanced real-time monitoring systems, we aim to significantly reduce vulture mortality within three years. In addition, we support breeding programmes, rescue efforts, and drive education and awareness initiatives. We also manage land and nature reserves to protect ecosystems and species. Our declared reserves: Ingula, Majuba, and Koeberg contribute to national biodiversity goals. Ingula Nature Reserve is South Africa’s 27th Ramsar Site, safeguarding high-altitude grasslands and wetlands that host several threatened species, including the White-winged Flufftail and Bearded Vulture. Through innovation, partnerships, and sustainable land management, we are committed to ensuring that sustainable power does not come at the cost of biodiversity. We believe energy and ecology can coexist through science-led approaches and responsible stewardship. 30 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management continued SO2 annual averages 14.9 14.9 12.7 12.97 12.3 12.5 SO2 concentrations (ppb) 10.5 10.8 9.8 9.85 9.3 6.3 5.4 5.4 5.8 4.8 4.9 3.8 3.74 Camden Majuba Elandsfontein Kriel Village Komati Emzinoni Grootdraai Silobela Masakhane Medupi Phola Grootvlei KwaZamokuhle Marapong Kendal Sivukile Ezamokuhle Chicken farm Rand Water Station Nitrogen dioxide (NO2) levels at all monitoring stations remained below the National Ambient Air Quality Standards. No exceedances of either the hourly limit of 106 ppb or the annual average were recorded. NO2 annual averages 16.8 NO2 concentrations (ppb) Ambient air quality monitoring helps compare 13.67 emissions from power stations to other sources and 11.8 11.8 assess their impacts. The results inform understanding 10.09 9.83 9.59 9.16 of pollution effects. The DFFE has established South 8.84 8.16 African Ambient Air Quality Standards for key 6.23 6.45 7.25 5.96 5.66 5.77 pollutants, which serve as benchmarks for evaluating 5.06 air quality data. 4.2 3.67 In FY2025, some stations recorded intermittent exceedances of SO2 limits (10-minute, hourly, and Komati Krie Village KwaZamokuhle Silobela Ezamokuhle Medupi Grootdraai Masakhane Grootvlei Sivukile Camden Majuba Elandsfontein Chicken farm Rand Water Phola Marapong Kendal Emzinoni daily). However, the frequency of these exceedances remained within the allowable annual thresholds set by national standards. Station Fine particulate matter (PM2.5) from power generation causes cardiovascular and respiratory diseases and is linked to increased mortality and lung cancer. Coarser particles (PM10) reduce visibility and harm the respiratory system, highlighting the widespread health and environmental risks posed by these pollutants. 31 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Environmental Management continued Air quality monitoring stations, particularly Silobela, Masakhane, and KwaZamokuhle, recorded exceedances of The main contributors to this pollution are low- We aim to expand the air quality offsets programme both daily and annual limits for PM10 and PM2.5. The PM10 daily limit of 75µg/m3 was exceeded at 17 sites, while the level sources like the mining sector, gravel roads, to other communities in the Mpumalanga Province PM2.5 daily limit of 40µg/m3 was exceeded at 14 stations. residential biomass burning, and ash dumps. Eskom is and continue to maintain our commitment to implementing air quality offset programs to address completing these offset projects as per scheduled these issues in hot spot areas. For instance, the timelines by exercising diligence and ensuring PM10 annual averages large-scale rollout of the programme in Ezamokuhle favourable working relationships with all stakeholders. 96.7 led to significant improvements in ambient PM10 94.2 concentrations in 2023. 81.8 PM10 concentrations (ug/m3) 68.2 68.9 AIR QUALITY OFFSET PROGRAMME 62.0 60.9 We have continued with executing the air quality 59.2 53.5 52.7 offset programme which aims to reduce particulate 51.0 49.4 49.2 42.0 45.8 matter emissions in strategic communities affected 39.5 by emissions from our coal-fired power stations. 32.4 The programme entails addressing waste burning, transitioning households from coal use to liquid petroleum gas and insulating houses with ceilings to improve indoor air quality. Significant progress is being made on the various projects underway, Kriel Village Elandsfontein Chicken farm KwaZamokuhle Camden Kendal Grootvlei Majuba Ezamokuhle Rand Water Medupi Masakhane Komati Phola Silobela Sivukile Marapong in implementing this programme. This is verified in annual reports submitted to authorities which show a positive progress. Station Phase 1 of air quality offset project has been completed, in which 3 505 and 2 086 houses had PM2.5 annual averages targeted interventions retrofitted at kwaZamokuhle and eZamokuhle, in Highveld Priority Area, respectively. Eskom approved the contract for 44.7 waste clearing and spatial clean-ups to be done at Sharpeville (Vaal Priority Area). PM2.5 concentrations (ug/m3) 36.7 36.3 37.2 31.3 As part of the offsets programme, awareness and 28.7 27.3 knowledge was identified as critical in changing 24.8 behaviour contributing to poor air quality in 22.0 23.0 18.4 communities. Phase 2 projects, which comprise 17.4 15.0 Sivukile (near Tutuka) and Phola (near Kendal) are in 8.2 progress. For the Kendal project, progress in the form of activations of three communities was achieved. Twelve separate stakeholder activations (puppet shows, industrial theatre and speeches) were held Emzinoni Masakhane KwaZamokuhle Phola Chicken farm Kriel Village Grootvlei Kendal Sivukile Silobela Medupi Majuba at schools in the Vaal area (Refengkgotso) and in Rand Water Ezamokuhle Mpumalanga for Phase 2B. Station 32 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance Climate Response at a Glance Reducing Building Net-Zero National & Resilience & Energy Global Carbon Emissions Footprint & Adapting to Diversification​ Engagements​ by 2050 Disclosures​ Climate Risks​ Eskom participated in COP29​proceedings 16% decrease in carbon footprint Divisional and Subsidiary Adaptation 83.5% Coal (FY2024: 80.5%) Drive repowering and repurposing Participated in DFFE-led Adaptation emissions (from baseline year – 2019) plans approved​ 3.2% Hydro (FY2024: 4.5%)​ projects​ workshops Reporting on more categories and Continually assessing climate risks and 5.1% Wind (FY2024: 5.6%)​ Adopt clean coal technologies​ JET​: multiple stakeholder engagements included subsidiary emissions leveraging on resilience opportunities Roll out EV fleet and charging station​ 3.0% Solar (FY20224: 3.1%) held Submitted annual CDP disclosure for Smart grid technologies​ scoring 3.9% Nuclear (FY2024: 3.9%)​ 1.3% Diesel (FY2024: 2.5%) Energy diversification​ R&D and innovation​ Climate change is a major global challenge with been on this journey, from when we first reported wide-ranging effects on the environment, society, our greenhouse gas emissions on a voluntary and economies across the world. The last ten years basis in 1992, to active participation in the policy- have been the warmest years in the historical record making process and the voluntary carbon budgets. and several pieces of evidence indicate that global Eskom has also been complying, since 2017 with warming and its impacts, including extreme weather the mandatory reporting and Pollution Prevention events, have been unfolding faster than expected. Plan regulations as well as the Carbon Tax Act (since 2019). Eskom is excited that the new Climate As the scientific evidence for global climate Change Act will mainstream climate change issues change has been mounting, and the international throughout local, provincial and national planning negotiations have progressed, there has also been processes and ensure that South Africa makes a fair an evolution in domestic legislation – following the share contribution to the international effort. normal policy process of a green paper, white paper, a draft bill and the final Act. Since it has taken a long time to realise the specific Climate Change Act, in the past other pieces of legislation have also been brought to bear. Relevant regulations under the Air Quality Act, are now being consolidated under the Climate Change Act. Eskom has also 33 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance continued SOUTH AFRICAN CLIMATE CHANGE POLICY LANDSCAPE NEMA: Air Quality Act National CC Response National Priority Pollutants Carbon Tax Act National Adaptation (No. 39 of 2004) White Paper – 2011 and Pollution Prevention (No. 15 of 2019) Strategy (NAS) Regulates air quality, emissions Outlining SA’s long-term vision Plans – 2017 Imposes a tax on CO2 Guide Implementation of and pollutants, including for a climate-resilient and low- Mandates GHG-intensive emitters, applying the climate resilience strategies greenhouse gases (GHGs) carbon society industries to prepare and polluter-pays principle to across sectors submit Pollution Prevention encourage low-carbon Plans (PPPs) for approval alternatives by putting a price on emissions 2004 2010 2011 2015 2017 National CC Response NDC (1st) Updated 2021 National GHG Emission Low Emission Climate Change Act Green Paper – 2010 SA’s commitment to Reporting Regulations Development Strategy (No. 22 of 2024) Driving transition to a reducing GHG emissions (2017, amended 2023) (LEDS) Establishes a national CC low-carbon economy and and adapting to the Requires facilities above a Provide Sector-specific response framework. society, enhancing climate impacts of CC under the threshold to report GHG pathways Introduces carbon budgets resilience, and supporting Paris Agreement. Net- emissions for decarbonisation and sectoral emission sustainable development zero emissions by 2050, targets. Provides for climate peak emissions between adaptation and mitigation 2025–2030 plans. Mandates alignment of development plans with climate goals 2024 2020 2020 2019 2017 Eskom remains a key player in the South African and operations. In this context, international collaboration 2024, convening nearly 200 countries and over global climate change landscape. We play a significant is crucial to align national actions with global climate 56 000 delegates. This was the second-largest role not only in reducing greenhouse gas emissions goals. A key platform for such collaboration is the gathering in the history of the United Nations climate for South Africa but also in leading the way for a just annual United Nations Climate Change Conference. process and the conference reflected the growing transition to cleaner energies. As the main provider urgency and collective resolve to accelerate action in of electricity in South Africa, Eskom acknowledges its The 29th United Nations Climate Change Conference addressing climate change. As a leading contributor to key role in tackling climate change and is dedicated (UNFCCC) Conference of the Parties (COP29) was greenhouse gas (GHG) emissions, the energy sector to embedding sustainable practices throughout its hosted in Baku, Azerbaijan, from 11-22 November plays a critical role in addressing this global challenge. 34 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance continued KEY COP29 OUTCOMES GHG EMISSIONS REPORTING AND One of the most significant outcomes of COP29 was DISCLOSURES the adoption of a new collective quantified goal on Eskom’s reliance on coal-fired power stations for climate finance; that of tripling support to developing electricity production leads to significant carbon countries from US$100 billion to US$300 billion dioxide emissions and other pollutants. Our CO2 annually by 2035. While this signals progress, emissions for FY2025 were 204.6 million tonnes. the agreement still falls short of the US$1.3 trillion While these emissions still represent a significant requested by developing nations to meet their climate contribution to the national total, (approx. 41%) it ambitions. At the same time, the Loss and Damage represents a declining share, as well as a considerable Fund will begin disbursements in 2025, a significant decrease in absolute terms. This illustrates that Eskom milestone in supporting vulnerable countries is on the right path to support South Africa to achieve experiencing the effects of climate change. Additional its’ nationally determined contribution. breakthroughs included the extension of the gender action programme for another decade, expanded Annually we report our Scope 1 emissions to DFFE, support for Indigenous and local communities, and ESKOM AT COP29 for stationary and mobile combustion plus fugitive new indicators for measuring progress under the emissions. GHG Emissions reporting to DFFE is Global Goal on Adaptation. Highlights of Eskom-led sessions a regulatory requirement, calculated in line with the IPCC methodology and DFFE methodological COP29 concluded with the long-awaited finalisation Komati lessons Shared insights on replicating Komati’s Just Energy Transition (JET) model at Grootvlei, guidelines. Therefore, the DFFE GHG reported 1 of the Article 6 Rulebook, establishing a robust learned and underscoring the need for economic diversification, social dialogue, and robust figures are not comparable with carbon footprint framework for international carbon trading. implementation at upskilling to secure a fair transition for workers and communities. figures which are calculated based on the GHG This includes new standards for methodologies, Grootvlei Protocol guidelines. carbon removals, and a dynamic mechanism for Climate change Advocated for enhanced business resilience against extreme weather events and urged updates. Importantly, it empowers the UNFCCC 2 stakeholders to tap into mechanisms like the Loss and Damage Fund to finance We recognise that climate change is not just an adaptation and Secretariat to provide carbon registry services, a resilience for adaptation strategies. environmental issue but a business issue with far development of direct relevance to emerging carbon business reaching effects on the electricity grid. Our value markets in South Africa. chain of operations from securing resources, Unlocking funding for Explored innovative financing models such as blended finance, PPPs, and regulatory generating, transmitting and distributing to customers 3 COP29 was more than a platform for dialogue, it energy transition reforms are essential for accelerating grid expansion and renewable energy integration are at risk of significant disruption due to both projects in South Africa. presented a strategic opportunity for us to contribute physical and transition climate-related risks. We meaningfully to shaping the global transition toward a therefore continue our commitment to transparency low-carbon future while championing South Africa’s ROAD TO COP30: A DEFINING MOMENT FOR THE GLOBAL CLIMATE TRAJECTORY by publishing our carbon footprint and disclosing priorities in the just energy transition agenda. We Looking ahead to COP30 in Belém, Brazil, the pressure to demonstrate concrete progress is only increasing. our climate change on our website, in our annual participated in seven pavilion events, three of which The “Baku to Belém” climate finance roadmap is expected to catalyse further action and help unlock the scale of Integrated and Sustainability reports as well as were directly hosted by Eskom with the aim to funding needed, aiming for US$1.3 trillion annually by 2035, to meet global ambitions. However, challenges remain. through platforms such as the Carbon Disclosure share insights, foster partnerships, and influence the The recent withdrawal of the United States from the Paris Agreement and specifically the retraction of US$1.5 Project (CDP). The CDP platform is an international international policy discourse. billion in funding pledged to support South Africa under the Just Energy Transition Partnership (JETP) has raised platform for companies to disclose climate, water concerns about the reliability of international climate finance. However, in March 2025, the European Union has and other environmental biodiversity impacts and stepped forward with a €4.7 billion Global Gateway Investment Package, a comprehensive initiative designed to performance, for annual scoring. Disclosures and support mutually beneficial strategic investment projects in South Africa. reporting are effective measures for monitoring of our GHG emissions, in line with international best Against this international background, climate action has taken significant steps forward in South Africa as well. practice. This enables us to remain accountable for The Climate Change Act (no 22 of 2024) was signed into law in July 2024 and commenced in March 2025, with our emissions contribution and provides us with certain provisions still to come into effect. The draft legislation has been under discussion since 2018, and Eskom an opportunity to manage the magnitude of our is well prepared to comply with all requirements, tackling climate change through a comprehensive dual approach emissions and sources. of mitigation and adaptation. These strategies are vital for minimising greenhouse gas emissions and ensuring the resilience of our operations in the face of climate-related impacts. In the light of the recent development and to ensure that we comply with the current and future requirements we have revised our climate change strategy which has been approved by the Eskom Board. 35 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance continued ESKOM’S CARBON FOOTPRINT RISKS AND OPPORTUNITIES FOR competitive business. Eskom’s goal of achieving We quantify our carbon footprint on an annual basis, utilising the international recognised GHG protocol MITIGATION net-zero emissions by 2050 underscores our methodology, an established Corporate Accounting and Reporting Standard for GHG emissions. Since 2019, we The evolving climate change legislation has been classified commitment to reducing environmental impact and voluntarily quantify our carbon footprint and disclose these results. a priority II risk under our Integrated Risk Management aligning with global climate goals. Standard, and we are continually assessing our response The majority of our GHG emissions emanate from our reliance on fossil fuels, which currently account for over To reach this ambitious target, we have developed a measures to ensure that we are able to comply. 97% of all our emissions. Although the relative share of accounting for our scope 3 emissions has increased since comprehensive strategy that includes decarbonising the our first report in 2019, this is primarily due to expanded coverage in our reporting. Our overall carbon footprint The Climate Change Act introduces instruments for energy mix by deploying renewable energy technologies has been declining, however in 2024, an increase in our scope 1 emissions is mainly attributable to increased plant limiting GHG emissions from sectors and companies. In such as wind, solar, and hydroelectric power, and phasing availability and therefore increased coal usage, enabling us to minimise loadshedding. the past, Eskom has participated in the DFFE’s voluntary out unabated coal power plants. Additionally, we are carbon budget programme, but these are expected retrofitting and upgrading existing power stations to The following presents our carbon footprint results for the calendar year 2024, compared with our 2023 and to become mandatory over the 2026 to 2030 period. enhance efficiency and reduce local pollutants. 2022 emissions our 2023 and 2022 emission (tons CO2e). South Africa’s NT has also implemented the Carbon The implementation of smart grid technologies and Tax Act (no 5 of 2019) since June 2019. The carbon tax charging infrastructure to optimise energy distribution 2024 191 808 802 55 554 3 075 553 was projected to be implemented in phases, with phase and consumption, including through eMobility, 1 expected to end in December 2025. For phase 2, NT remains a priority as part of our approach to business 2023 184 134 349 131 899 4 505 188 has proposed to maintain the electricity price neutrality sustainability and achieving net-zero emissions. The commitment of phase 1, to counteract the harmful JET aims to achieve net-zero carbon emissions by economic effects of high electricity tariff increases. 2022 193 386 382 85 171 5 407 896 2050 while ensuring that the transition is fair and South Africa’s long term GHG emissions trajectory equitable for all stakeholders, particularly affected 2021 207 364 669 260 899 will be highly influenced by the transformation of the workers and communities. Different opportunities electricity sector as provided for through the country’s for mitigation are expected to be available in the Integrated Resource Plan (IRP) which is consistently short-medium and longer term, both improving the 2020 201 375 875 248 240 indicating a high degree of supply-side diversification. environmental performance of existing plant and This, in turn, must be enabled by execution of our pursuing diversification of the supply mix. 2019 212 313 513 289 861 Transmission Development Plan (TDP). We are focussing on: We have embarked on a journey to diversify our • Expediting ramp rate flexibility for the current coal 165 000 000 170 000 000 175 000 000 180 000 000 185 000 000 190 000 000 195 000 000 200 000 000 205 000 000 210 000 000 215 000 000 energy mix by incorporating renewable energy. fleet. We produce and procure electricity 3.2% (FY2024: • Demonstration of Plasma and Mini Oil Gun 4.5%) from hydro, wind 5.1% (FY2024: 5.6%), solar technologies to reduce the amount of fuel oil 3% (FY2024: 3.1%) and nuclear 3.9% (FY2024: 3.9%). required for start-up, shutdown and low load Scope 1 Scope 2* Scope 3** Additionally, as part of the JET, we have initiated operations. a repowering and repurposing project at Komati • Pursuing a conversion of diesel to gas at the current and stations reaching end-of-life. The repowering Open Cycle Gas Turbine (OCGT) plant. * Scope 2 emissions were not reported between 2019 and 2021, network losses for transmitting and distributing IPP electricity repurposing initiative will operate on the most • Assessment of innovative mechanical standalone ** Scope 3 emissions increased from 2022, due to the inclusion of electricity relating to IPP’s (OCGT) and rail delivery suitable alternative energy sources, utilising the energy storage systems. existing infrastructure. This approach benefits us and • Evaluating opportunities for biomass co-firing. the environment, due to lower environmental impacts and carbon footprint, while generating cleaner energy. • Piloting a renewable hydrogen facility. • Exploring the potential of Carbon Capture The implementation of an environmental Utilisation and Storage (CCUS) technologies. management plan and the adoption of clean coal This includes ongoing collaboration with Council technologies are other avenues we are exploring of for Geoscience, Exxaro and Sasol. managing our footprint. These initiatives will assist • Opportunities to support the JET through with lowering our GHG emissions, aid in achieving initiatives such as localisation of manufacturing our net-zero ambitions and allow us to remain a components for renewable and battery supply chains as well as ash beneficiation, amongst others. 36 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance continued We aspire to be a meaningful player in the renewable ADAPTATING TO CLIMATE CHANGE energy market, shifting our energy mix towards a We continue to integrate climate adaptation and resilience in our operating environment. We look at physical climate risks that will impact our business both upstream and balanced energy mix. It is also Eskom’s obligation downstream in terms of resources, assets and infrastructure, systems and operations, our supply chain as well as our customer (changes in demand and consumption patterns). to support the diversified future supply mix of the Integrated Resource Plan through strengthening We have taken a systematic approach in developing our adaptation response as outlined below: and expansion of the Transmission and Distribution grids. The TDP 2024 indicates that 56GW of new Our adaptation journey generation capacity would be required by 2034, mainly from renewable energy sources (solar and • Drive implementation processes wind) and gas. Transmission network requires and projects approximately 14 500km of extra-high-voltage lines • Refine monitoring metrics and 210 transformers to bring on board 132 650 MVA • Understanding Eskom’s • Initiated phased development of • Continued research focusing on • Continual risk reviews and of transformer capacity by 2034. vulnerabilities to climate adaptation plans climate extremes projections improvements change – research case studies • ERI Adaptation Plan approved under 1.5°C and 2°C scenarios, • Emerging risks and best practice Distribution is aiming to expand the reticulation • Adaptation Strategy • Engagements with Gx and NTCSA and impacts on renewables and major dam catchments of Lesotho • Quantify climate related risks network by 6 125km and 2 980 MVA transformer developed on development of adaptation plans capacity in the next five years, while simultaneously • Continued research through rolling out over seven million smart meters and 250 academic institutions microgrids. New business opportunities are seen in • Partnerships and collaborations the commissioning of 238 EV charging stations while also reducing vehicle emissions with the purchase of Beyond 875 electric vehicles, for own use. 2010 2015 2018 2019 2023 2024 2025 • Research partnership with CSIR NTCSA approved Climate Change Plan • Climate risks identified • Detailed downscale modelling of Dx approved Climate Change plan • Related operational risk climate change projections up to 2100 Continual risk and plan reviews (ERI assessments initiated and (RCP4.5 and RCP8.5) and Gx) reviewed • Adaption procedure developed and NTCSA focused Risk and Vulnerability • Gx Adaptation Plans approved communicated research – case studies RISKS AND OPPORTUNITIES FOR To support the identification of physical climate An inability to safeguard our assets and operations ADAPTATION risks, our Research Testing and Development against short term, acute climate risks and well as long Understanding the geospatial characteristics of (RT&D) Department collaborated with the Council term, chronic risks has been classified a priority II risk the climate exposure is a crucial component of for Scientific and Industrial Research (CSIR) to under our Integrated Risk Management Standard. This risk assessment. Our electricity infrastructure is obtain 8km downscaled climate projections for risk has the potential to lead to a priority I risk (such already exposed to increasing frequency, intensity South Africa, for future time periods (up to 2100). as loadshedding). and magnitude of extreme weather events across These projections have been completed for the all provinces but particularly in the Western and Intergovernmental Panel on Climate Change Eastern Cape, KwaZulu-Natal (KZN) and Gauteng (IPCC’s) high and intermediate emission scenarios that have been impacted by severe storms, floods and Representative Concentration Pathway (RCP) 8.5 and wildfires. Building resilience into existing and planned RCP 4.5. For both scenarios, in the mid-future period infrastructure must be informed by an understanding (2050), South Africa is expected to experience an of the trends in climate variability. unprecedented frequency of high fire-danger days, heatwave days, and very hot days. 37 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance continued Our climate risks are being managed through the to prepare adaptation plans in support of sectoral CASE STUDY implementation of divisional and subsidiary Climate adaptation plans. Adaptation Plans, developed by multidisciplinary teams (comprising environmental practitioners, risk Risks are identified, recorded and regularly Extreme weather conditions and snowfall compromise Eskom network and resilience champions, engineers and disaster monitored through the CURA system to ensure the 20 to 21 September 2024 management representatives) to cover the scope of applicability and effectiveness of risk controls and Following a Level 6 warning by South African Weather Services (SAWS) for disruptive snow and severe their operations. The process is guided by the Eskom treatment measures. weather conditions for the 20-21 September 2024. Central East Cluster (CEC) KZN Operating Unit Integrated Risk and Resilience Management Procedure issued safety alerts to employees and requested emergency structures to be prepared and on high alert. The Climate Adaptation Plans have been formally for Climate Adaptation Planning which places us in adopted by the relevant governance committees Snow started falling in the evening of the 20th of September initially only impacting a few medium a strong position to meet the requirements of the and implementation progress is monitored through voltage networks in the Underberg area. However, snowfall continued throughout the night resulting Climate Change Act for state-owned companies annual reports. in the closure of the N3 freeway and other provincial roads, and trips on multiple Eskom high and medium voltage networks were experienced. Adaptation plans in place for Generation, NTCSA, Distribution and ERI Governance By 8am on the 21st of September widespread outages on 14 sub transmission networks and 128 medium Plans discussed and supported at various governance committees supported voltage feeders had occurred affecting more than 192 000 customers. Due to the significant amount of snowfall and the resulting road closures, access to networks was impossible with most Eskom teams unable Internal awareness and capacity building initiatives through webinars, news to respond to faults due to safety reasons. As a result, emergency structures were activated to manage the bulletins, fact sheets and conferences emergency. Fortunately, snowfall started subsiding by midday and the technical teams started making their Capacity building and way to the prioritised sub transmission networks restoring power supply to 130 000 customers. Participation in the UNGC academy of learning communication Participation on external technical working group, conferences and industry task teams The impacts on the sub transmission network also affected power supply to the Ingula and Drakensberg pumped storage schemes, however these were restored late on the 22nd and 23rd of Climate projections available for NTCSA grids, Dx clusters and generation September respectively. Full restoration was achieved on 2nd of October 2024. The Eskom teams did operating units well to restore supplies safely under challenging conditions. Climate services Projections for RCP4.5 and RCP 8.5 scenarios Improving climate resilience through lessons learned Projections under 1.5°C and 2°C scenarios Safety • Operating units in snow affected areas to stock appropriate snow PPE Risk and vulnerability assessments • Vehicles to be installed with winches and have snow chains available Integration and monitoring of climate risks in integration risk management Communication • Improve mobile communication in vehicles Integration into registers and stakeholder • Establish communication channels early in the emergency with affected farming business processes Integration into disaster and resilience management processes engagement community to facilitate assistance with clearing access roads to the networks Integration into exiting plans and procedures and future capital projects Technical • Design review of the sub transmission and MV networks supplying the Drakensberg and Ingula Power Stations to improve resilience Continual risks reviews Monitoring and Adaptation plans reviewed and updated Some damages to networks were quite significant with multiple structure failures and conductors reporting Financial impacts of extreme weather events parting due to the snow loading. Annual progress reports and reporting to relevant governance structures CONTINUED INVESTMENT IN CLIMATE ADAPTATION RESEARCH More recent research studies with the CSIR have focussed on using global climate models that contributed to the Climate Model Intercomparison experiment (CMIP 5 and CMIP6), to identify changes in the spatial patterns of temperature, wind, precipitation, and extreme events as well as fire danger over South Africa for the 1.5°C and 2.0°C global warming levels (GWL). We have also carried out research on risk and vulnerability of transmission infrastructure specific to the KZN and Western Cape areas. 38 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Climate Change Performance continued OUR FUTURE FOCUS FOR CLIMATE The strategy is aligned with the National We are dedicated to substantially expanding our CHANGE Development Plan and the Climate Change Act, renewable energy capacity to achieve our long- We have recently reviewed and updated the Climate and it provides a strong foundation to support our term goal of net-zero emissions by 2050. In the Change Strategy to place renewed focus on: ambition for achieving net-zero emissions by 2050. near to medium term, we have a 2GW pipeline • Accurate and timeous GHG emissions’ reporting, Guided by the JET Strategy, Climate Change Policy, of clean energy projects ready for execution. including strengthening internal controls and adaptation planning procedures, the strategy Beyond repowering and repurposing of aging coal focuses on four key objectives with targeted indicators fired stations we are also working towards the • Continuous improvement in climate risk to track progress, reinforcing accountability without development of a larger 5.9GW clean energy pipeline, identification and management duplicating existing JET measures. We have also set including gas-to-power and battery storage initiatives. • Employee and external stakeholder awareness and up a Renewable energy unit (future subsidiary), that To accelerate progress, we are establishing an capacity-building engagements will enable us to meet these targets and propel our independent subsidiary focussing on driving renewable • Formalising financial integration through procedures energy transition effectively. energy investment and innovation. and tracking and reporting processes Eskom’s climate change strategy key objectives Objective 1 Objective 2 Objective 3 Objective 4 Integrate climate-related aspects in the corporate Ensure Eskom’s assets and operations are resilient to Communicate on external engagements and Enable achievement of net-zero emissions by 2050 financial system adverse climate change impacts participation Goal: Goal: Goal: Goal: Embedding climate considerations into all financial and Ensure that Eskom’s assets and operations are robust, Clearly communicate the company’s climate goals and Establish a clear, actionable pathway to net-zero operational decisions adaptive, and resilient to the adverse impacts of climate motivate and empower Eskom employees to actively emissions by 2050 through measurable interim targets, change, thereby safeguarding the company’s long-term contribute to them low-carbon transition strategies, and investments in sustainability and operational integrity clean technologies and supporting infrastructure 1. Establish a climate risk integration framework 1. Ensure access to 5. Develop and 1. Entrench reporting 5. Facilitate the delivery 1. Propose an interim 5. Accelerate the and metrics climate forecasting/ implement a climate practices of technical short target for GHG transition to low projections dashboard courses emissions reduction carbon energy sources 2. Mainstream carbon pricing guidance 2. Formulate divisional 6. Appropriate use of 2. Implement divisional 6. Implement climate 2. Develop a 6. Grid modernisation adaptation plans water resources in GHG reviews metrics and decarbonisation operations performance indicators roadmap 3. Enhance climate-related financial reporting 3. Implement climate 7. Continue to 3. Implement a (general) 7. Communicate on 3. Expand green finance 7. Sulphur hexafluoride resilience upgrades collaborate on disaster climate change external engagements initiatives (SF6) technology risk management for communication plan and participation replacement climate-related causes 4. Identify opportunities for revenue from the sale 4. Identify opportunities 8. Engagement with 4. Report on Eskom’s 4. Implementation of 8. Implement a robust of green energy and/or carbon offsets for revenue from the stakeholders on climate carbon footprint Eskom's JET Strategy carbon offsetting sale of green energy resilience strategy to achieve and/or carbon offsets net-zero in 2050 39 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Just Energy Transition Eskom’s 5 Es of JET Energy Economy Employment Equity Environment Ensure equitable access to clean, Contribute to the reindustrialisation Create new high-quality jobs through Catalyse re-skilling of staff and communities Reduce GHG emissions and water sustainable energy by unlocking new of South Africa by providing sufficient repowering and repurposing initiatives to ensure an equitable transition through consumption, contributing to South Africa's energy sources and strengthening the clean generation and catalysing new with focus on Mpumalanga training centres and repurposing projects sustainability goals national grid RE-based industries tailored to each community The Board approved Eskom’s JET strategy and key Eskom plays a pivotal role in operationalising the Unless a co-created and inclusive response to the A key lesson learnt from our Komati JET is the lessons learnt from the Komati JET experience continue energy transition through our JET Strategy that aims transition is in place, communities will be further importance of social dialogue, which goes beyond to inform our plans and strategies around JET. An for a gradual yet decisive shift toward a sustainable stranded and disadvantaged. This directly opposes stakeholder engagements towards co-creation and important element to emphasise in the JET strategy generation fleet for the future, guided by the five the essence of the JET which commits to ensuring consensus building with communities. It is critical is the decoupling of station operations from our JET principles of JET: Equity, Employment, Energy, that communities will not be adversely affected that communities are taken along the journey of the programme where we will repower and repurpose coal Environment, and Economic Growth. Importantly, by the energy transition and that the JET will be energy transition. To this end, we have already begun, fired power stations independent of station operations the strategy does not advocate for the premature a beacon for developmental opportunities at all in close collaboration with the Provincial government and other key stakeholders, key engagements with and irrespective of when the production units’ ramp closure of any power stations, considering the ongoing levels of the economy. Our objectives align with the communities around Grootvlei, and we are advanced down to zero megawatts, to manage the transition energy demands and the severe socioeconomic three principles of justice of the energy transition in the procurement process to appoint specialist from high emitting energy sources of fuel to clean consequences such shutdowns would have on the (restorative, procedural and distributive), and are support to assist us in engaging communities around energy. This is not a renewable versus coal position, communities built around these operations. Instead, supported by the three interdependent pillars of the Camden, Hendrina, Arnot and Kriel power stations. and the organisation remains technology agnostic in its it focuses on providing power stations and their strategy: Just, Energy, and Transition. pursuit of a low carbon future. surrounding communities with a renewed purpose The Komati Information Centre, which now employs through repurposing and repowering (R&R) initiatives. The first pillar of our JET, the Just pillar, focuses on two community members on a full-time basis, This development is guided by South Africa’s IRP and ensuring the transition is socially equitable. We aim continues to serve as an active walk-in centre for is aligned with the country’s Nationally Determined We remain committed to our decarbonisation efforts to give power stations a renewed purpose through community engagements, and training. Contributions (NDC), the Climate Change Act 22 of as a driving force in transforming South Africa’s energy repowering and repurposing alongside socio- 2024, and other relevant policies. This Just Transition landscape. We acknowledge the country’s responsibility economic programs, beginning in our longstanding Policy Framework serves as a strategic blueprint for the in the global effort to reduce human-caused operational areas in Mpumalanga. This includes efforts country’s shift toward a low-carbon, climate-resilient greenhouse gas emissions, the main contributors to to diversify the local economy at power stations while economy. The framework is rooted in the principle of climate change. This challenge is heightened by South they remain operational. These initiatives will unlock ensuring that the transition to net-zero emissions by Africa’s vulnerability to climate impacts, which demands the potential of local talent and skills, grid capacity, 2050 is socially inclusive and economically just. urgent and effective adaptation measures. and world-class renewable resources, ultimately creating new jobs and fostering socio-economic development within power station communities. 40 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Just Energy Transition continued The Energy pillar of the JET Strategy aims to develop unlocking the transition in Mpumalanga, but there We are working closely with the National Business new capacity that meets South Africa’s energy remains a need for additional grant funding, beyond Initiative with funding from Kf W to scope and demands in an affordable and sustainable way. consultancy services and studies to fund small medium develop this facility to support staff and community Rather than framing it as coal versus renewables, and micro enterprise growth and development and to with training and development opportunities. The this approach envisions a continued but gradually address some of the social challenges associated with complete GCSHC will be operational in 2026 and decreasing reliance on coal, alongside a steady the transition away from coal. 15ha agriculture commercial hub will be operational increase in clean energy production. We maintain a in 2027/2028. When complete, the GCSHC will serve technology-neutral stance, as long as new generation Moreover, the South Africa’s updated Accelerating as a catalyst for economic growth and employment in sources produce low emissions and comply with Coal Transition (ACT) Investment Plan has been the Gert Sibande District. national policy objectives, balancing the three key formally approved by the Trust Fund Committee of the aspects of the energy trilemma: energy security, Climate Investment Funds (CIF). The Eskom JET office In total, 353 employees and 326 community members access and affordability, and sustainability. is working with the Project Management Unit within (as at April 2025) have been trained through various the Presidency towards achieving the objectives and training programmes delivered through the Eskom The Transition pillar of our JET Strategy focuses on commitments made regarding this fund, and towards Academy of Learning, our Implementation Agent at managing the shift from traditional, coal-based power achieving the objectives of repurposing and repowering Komati and through partnership agreements. generation to a cleaner, more sustainable energy Hendrina, Camden and Grootvlei power stations. future. It emphasizes a just and inclusive process that An additional training facility is being revamped at minimizes social and economic disruption, particularly Another key lesson learnt from Komati is the need Hendrina. The training centre will have classrooms, for workers and communities dependent on coal to diversify the economy around the stations as computer room, mechanical workshop and the power. This involves gradual changes supported by operations and maintenance of renewables alone is electrical workshop. Various programmes will be repowering and repurposing initiatives, ensuring insufficient to ensure sustainable site-specific jobs to offered in the classrooms followed by practical work energy security while aligning with environmental offset the jobs lost from current operations. and certification of participants. goals and broader national policies. One example of this strategy in action is the extensive Achieving a truly just transition will require that the work that went into the development of the Climate South African government, other stakeholders, and Smart Horticulture Centre at Grootvlei power Eskom actively collaborate and play a prominent station. The Grootvlei Climate Smart Horticulture role in creating and implementing relevant social Centre (GCSHC) is a key initiative to diversifying programmes. We recognise that action from various economic activities around Grootvlei, and the centre stakeholders is required and is contributing to these represents a transformative investment in sustainable efforts with Repurposing and Repowering (R&R) and agriculture, job creation, and economic development. other socio-economic initiatives to catalyse positive Established in Eskom’s JET office, and in partnership social impact. with the Kingdom of the Netherlands, the GCSHC FUNDING FOR JET aims to repurpose (in phase 1) 20 hectares of Eskom Komati R&R is funded by the World Bank through land outside Grootvlei Power Station into a centre of concessionary loans. A relatively small amount excellence for agripreneurs, skills development, and (approx. $10million) of this facility is provided as sustainable food production. grants for the services of owner’s engineers and an This facility will include a 0.5-hectare high-tech implementation agent. The Global Energy Alliance for climate-smart horticulture demonstration greenhouse, People and Planet (GEAPP) has provided grants for allocation for shade net areas, production tunnels, a the establishment of the training centre at Komati, and fully equipped machinery and equipment hub, and a German Development Bank (Kf W) has supported the dedicated workshop space. Complementing this in Eskom JET office with grants for some key studies and phase 2 is a 15-hectare agricultural commercial hub consultancy services including a stakeholder consultant designed to support agribusiness development, foster for engagement with workers and communities at market access, and drive economic growth. At its core Camden, Grootvlei and Hendrina, and a consultant is the development a state-of-the-art training and on biogas scoping in Mpumalanga. These are key to innovation centre. 41 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Just Energy Transition continued KOMATI WELDING FACILITY ADDITIONAL JET INITIATIVES Some examples include Personal Protective A mill maintenance workshop was converted into There are several additional initiatives in development Equipment manufacture at Komati; Transmission a welding training centre at Komati to train staff, in the JET office to repurpose power stations to localisation support on TDP; Biogas; Mushrooms and contractors, communities and the industry at large, diversify and reindustrialise the economy in the eco brick production; Industrial Hemp; Green Steel to prepare them to support our existing operations, province. Not all initiatives considered or developed Smelter; SEZ establishment; Pellet Stove manufacture; to create welding entrepreneurs, as well as position for repurposing will come to fruition. Some will fall Pelletisation from removal of alien invasive species; them to embrace the clean energy opportunities as by the wayside if it is found during development that Controlled Environmental Agriculture; Inverter and we expand our clean energy portfolio. As at April the risks or benefits associated with specific initiatives Battery Manufacture/Assembly; Long Duration Energy 2025, eight community members have completed do not warrant the investment. These are evaluated Storage Systems; Recycling of PV Panels; and Recycled training on welding theory with practical training on a case-by-case basis. It is therefore important to Plastic PV Panels. underway. Training of the next cohort is underway. drive many initiatives in parallel so that all eggs are not They will feed into the containerised microgid placed into one or a few baskets. manufacturing process. Engagements are underway with the South African Institute of Welding to use the facility as part of their curriculum. 42 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint Key Social Indicators Supplier And Corporate Skills Procurement Our Enterprise Social Development Spend Employees Development Investment R1.5bn spend on skills development R12.3bn spend on supplier development 1 786 contracts: R338.6bn 42 030 employees CSI and SED spend: R146.20m (FY2024: R1.4bn) (FY2024: R8.3bn) (FY2024: 1 309 and R107.7bn) (FY2024: 40 625) (FY2024: R93.1m) 2 609 learners (FY2024: 2086) R7m spend on enterprise development Local content: R317.63bn (FY2024: R97.7bn) R45.7bn spent on salaries and benefits People impacted: 1 203 566 (FY2024: R6.1m) B-BBBE compliant suppliers: R205.4bn (FY2024: R37.1bn) (FY2024: 272 217) (FY2024: R206.2bn) Our business is deeply embedded in the country’s latter are dependent on the nation’s economic ability leadership, hard work and national sinobuntu. Further it is Medium and Micro Enterprises (SMMEs) in the country. social and economic fabric, influencing both national to transition to less carbon intensive sources. imperative that fraud, crime, corruption, and malfeasance These activities and the grants and donations provided development and community well-being. While our core be eradicated from the consciousness of what it means to through our CSR programmes promote sustainable mandate is to provide a stable and affordable electricity The NDP and the SDGs draw together what is needed be an Eskom guardian and a South African resident. development and foster a more just society in addition supply, it is equally important for us to meet our social to transform South African society to be prosperous, to helping achieve national developmental goals. mandate of supporting economic growth and enhancing non-sexist, non-racial, and democratic. This outlines the With this scenario of socio-economic and the quality of life for South Africans. Access to electricity, tenets to ensure social protection, nation building, and technological development, partnerships and a critical We have a social responsibility to our stakeholders, especially to rural communities, enables various socio- social cohesion. Energy generation, transmission and paradigm shift to unwavering intolerance of criminality, including our Shareholder, customers, employees, and economic benefits, such as improved living conditions, distribution have a critical role in this transformation. we can transition to cleaner energy for production investors. Our operations encompass South Africa as access to education and healthcare, and opportunities As a responsible corporate citizen, we have a duty to and consumption, that is affordable and beneficial to well as neighbouring countries. Therefore, it is crucial for economic empowerment through small businesses manage these effects to the best of our ability using the all our stakeholders, including future generations. We, to ensure that not only are our employees working in and agricultural activities. We also engage in community countries resources optimally, within available budgets therefore, have a critical role in shaping and evolving safe conditions, but that our impact on others is also development projects, mostly through our Eskom and prudent levels of debt, whilst striving to maintain the South African social footprint. a positive one. Development Foundation, focusing on education, health, security of supply and prevent catastrophic systemic failure. We also need to ensure that the energy to KEY ASPECTS OF OUR SOCIO- Our JET programme is critical to us achieving the ideal Enterprise and Supplier Development (ESD), social social footprint and will fundamentally help us to drive enable these levels of quality of life are affordable and ECONOMIC ROLE upliftment, and poverty alleviation. a fair, inclusive, and equitable transition. These plans equitably distributed. Our strategic positioning, through operating at Energy and electricity are a social necessity to economies of scale, having an extensive workforce, prioritise job creation while addressing the needs of maintain national aspirational levels of quality of life It is critical to leverage the use of this energy in broad customer base, and national footprint, places affected communities and employees in which our in South Africa. Our massive power stations were the national interest: contributing to the judicious us as one of South Africa’s largest employers and coal plants are located and consequently shifts us to a designed and engineered for lower grades of coal extraction of resources, beneficiating these to purchasers of goods and services. This makes us a cleaner and greener footprint. (South Africa’s abundant resource), while that of compound their realised value, development and key driver of economic transformation, playing a vital maintenance of infrastructure, and the provision of We unpack our approach and performance against higher quality was exported for national economic role in advancing inclusion, fostering social cohesion, our social commitments in this pillar of ESG and interests and intended to last for decades, if properly services that continuously improve national standards and achieving the objectives and targets of the NDP. of living and economic growth and prosperity. outline how we pursue sustainable impact. maintained. There were considerable socio-economic We are a major contributor to South Africa’s national benefits and negative impacts associated with this The inventiveness, innovation, industrialisation, and transformation agenda, nation-building, ESD initiatives. approach and the global response to enhancing the entrepreneurship that is required to meet these These include promoting job creation, employment former while reducing, managing, and eliminating the aspirations will only be realised through dedicated equity, skills development, and development of Small, 43 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued OUR HUMAN RESOURCE HIGHLIGHTS Employment Salaries and benefits Skills development and quality Gender equality Reducing Inequalities Education Eskom workforce grew from 40 625 to 42 Eskom’s competitive, market-aligned salaries In FY2025, Eskom invested R1.5 billion in Women make up 42.58% of Eskom’s senior Eskom uses its annual Organisational 030 by March 2025, supporting job and benefits support its top employer skills development, up from R1.4 billion in management, well above South Africa’s 32% Effectiveness (OE) survey to gather creation. Local procurement stimulates status. Guaranteed and structured packages, FY2024, demonstrating its strong and the global 27.5% average, reflecting employee feedback, helping identify gaps economies and boosts employment, plus the EVP scheme, enhance employee commitment to continuous learning and strong progress in inclusive leadership and and guide actions that foster a more advancing efforts to reduce unemployment satisfaction and retention across managerial building internal workforce capabilities. gender representation. inclusive, equitable work environment and across South Africa. and bargaining unit staff. reduce workplace inequalities. OUR PEOPLE We monitor, evaluate and report on our performance As of March 31, 2025, we employed 42 030 people, Our people, including both employees and contractors, form the backbone of our success. Their collective using key indicators related to employment equity, making us one of the nation’s largest employers. expertise, capabilities, and experience drive our ability to meet our mandate and deliver on our strategic health, safety, and skills development. We have Over the past seven years, our headcount decreased priorities. Recognising this, we place people at the centre of our operations. As one of the country’s largest reviewed our FY2025 performance relative to the past from 46 665 in FY2019 to 42 030 in FY2025, as we employers, we not only provide direct employment opportunities but also drive growth in other sectors through six years and highlighted our long-term contribution to streamlined our operations and responded to changing the ripple effect of our activities. building and strengthening human capital. organisational needs. In the last two years, we have seen a steady rise in employee numbers, as per our Our human capital strategy sets the foundation for fostering a motivated, inclusive, and resilient workforce. EMPLOYMENT AND BENEFITS strategies and plans, shifting us from consolidation to It shapes how we engage with our guardians and is underpinned by five core focus areas: Our Workforce Plan ensures that current and future growth. staffing requirements support the organisation’s Strategic Objectives. While we historically were Employee attrition remained relatively stable around focused on decreasing our headcount, we have since 5%, with 5.8% recorded in FY2025, below the optimised our workforce plan to accommodate an international benchmark of 10% but slightly above increase over the next five years. This decision was our internal target of 4%. Even as numbers declined, based on benchmarking and to capacitate Eskom we prioritised the renewal of critical skills through a towards a future-fit organisation in support of our combination of external hires and internal promotions. High Future fit and turnaround plan, the legal separation, implementation Skills and Be an employer performance and productive Human resource TRAINING AND SKILLS DEVELOPMENT of clean energy technologies, and the JET. capabilities of choice ethical culture organisation excellence Developing adequate skills and expertise is critical Number of employees for FY2019–25 to ensuring operations are efficient, effective, and Our priority initiatives contribute to the economy in a sustainable way. As 46 665 one of the industry leaders in skills development in 76 We focus on We identify We enhance the We drive digital We are South Africa, we are dedicated to ongoing investment 44 772 redefining current and future employee transformation and restructuring in training for both our employees and external organisational skill needs and experience by standardisation of human resources 42 749 learners. This includes offering bursary programs and Number of employees culture, improving design strategies updating rewards, tools and for greater 42 030 graduate-in-training opportunities, all designed to performance and for talent wellness processes across efficiency and 40 421 40 625 cultivate a pipeline of skilled professionals who can build leadership development and programmes and the organisation customer focus, 39 601 drive progress within the energy sector capabilities succession planning communication with digital strategies optimisation of We have demonstrated a strong and growing process commitment to skills training and development, investing a total of R8.09 billion over the seven-year period from 2019 to 2025. The data shows an initial FY19 FY20 FY21 FY22 FY23 FY24 FY25 decrease from R1.19 billion in 2019 to (R820 million) 10.7 Financial Year 12.8 44 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued in 2021, which can largely be attributed to the impacts In FY2025 our learner pipeline (learners in the of the COVID-19 pandemic. During these years, many Eskom system) represented 2 609 of the permanent individuals were still recovering from the disruptions company work force. We have seen notable changes caused by the pandemic, which affected their ability to in our learner pipeline over the past years. From fully engage in further studies and skills development. FY2019 to FY2022, total learner numbers dropped However, starting from 2022 with (R854 million), significantly with the most impact seen in engineering there is a clear upward trend in funding utilisation, and technician categories. Since FY2023, we have seen rising to R1.5 billion by 2025. a steady recovery. Training spend for FY2019–25 Our uptake of Engineering learners saw a decline from 76 841 in FY2019 to 233 in FY2022, but we have since 1.51 increased to 611. Technician numbers also fell sharply 1.38 in the earlier years but increased steadily to 272 by 1.19 1.15 FY2025. Artisan learners, though initially the highest 1.08 group, declined over time and have now stabilised Total (billion rands) 0.82 0.85 to around 654. This could be attributed to the conclusion of the building and commissioning phases of the mega projects and the transition to operational LEARNER PIPELINE plant. Non-technical learners dropped to just 19 in Our learner pipeline is designed to respond to the demographic shift in the workforce by balancing the aging FY2022, but we have steadily been increasing our workforce with a steady influx of new talent. Through this program, we are strategically positioning ourselves to intake and are currently at 537 by FY2025. Plant FY19 FY20 FY21 FY22 FY23 FY24 FY25 meet future skills needs and ensure long-term sustainability. We maintain a healthy learner pipeline targeting 2.5% operators increased from 303 in FY2019 to 535 10.7 Financial Year 12.8 of the workforce comprising bursars, interns, and externally funded learners. Special programmes such as the in FY2025. This positive momentum reflects the success of Youth Employment Service (YES) contribute to the skills pipeline and social responsibility. Eskom’s strategic focus on encouraging employees It is critical for us to maintain the steady increase As of year-end, 612 YES learners were participating in work experience programs across a range of roles within and stakeholders to actively use allocated funds for in learner development to combat the potential the organisation. Although training and skills development initiatives are purposed for Eskom, these skills are education and skills development. The emphasis on challenges including, but not limited to, our aging also absorbed in other companies locally and internationally. Successful learners can change their economic making people aware of the funding availability and workforce, entry into the era of competitiveness and circumstances and those of their families. the critical importance of investing in their personal the need for enhanced skills and our repowering and and professional growth has clearly paid off. repurposing programme. These skills are vital to our Learner pipeline for FY2019–25 long-term sustainability, and recent gains show that The evolving energy landscape and our current our efforts in this area are beginning to deliver results. 1 200 operational challenges highlight the need for upskilling and reskilling our workforce. To meet this demand, we implemented a comprehensive upskilling and reskilling framework, which, along with the insights from our 871 881 841 Number of learners recent skills audit, will help bridge the identified skills and competency gaps. 692 654 648 654 611 537 535 465 409 421 422 367 303 274 272 272 240 235 233 209 223 222 151 134 85 68 61 61 43 26 19 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Financial Year Engineering Technicians Artisans Non-technical Plant operators 45 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued EMPLOYMENT EQUITY From FY2019 to FY2025, Black employees consistently comprised more than 80% of Eskom’s workforce. This We are repositioning ourselves as an employer of choice by focusing on diversity, equity, inclusion, and a sense exceeds the 78% Black representation in South Africa’s Economically Active Population (EAP). Meanwhile, 36% of belonging. Our revised Diversity, Equity, and Inclusion (DEI) Strategy drives inclusion beyond compliance of employees were female (up from 34.1% in FY2019), 30% were black female (equal to FY2019), and 2.96% of all and creates an equitable environment for employees to contribute value through dedicated programs for all employees were people living with disabilities (compared to 3.03% in FY2019). demographics and various abilities. In pursuit of equitable gender and persons living with disabilities representation, the percentage of female Eskom broader transformation employees grew from 34.1% in FY2019 to 37.12% in FY2025. The representation of employees living with disabilities has increased to 3.11% in FY2025 (FY2024: 2.96%). Diversity Equity Inclusion Belonging At the top management level, gender equity stands at 21.43% against a target of 27.72%. Within senior management, female representation is 42.58% compared to the target of 44.69%. At the middle management level, the target has been met and surpassed, with female representation at 43.20% against a target of 41.07%. Considering our historically workplace patriarchy and to boost women’s representation in decision-making and technical roles we continue enhancing and growing our Eskom Women Advancement Programme (EWAP). Presence of people Promoting equal and Efforts to make every The feeling of being Recent achievements include being highlighted on the UN Women’s website for our lactation facility, as well as with a wide range of fair treatment in employee feel accepted, respected, being recognised by Standard Bank’s TopCo as one of South Africa’s Top Gender Empowerment Companies. characteristics, seen and employment through welcomed, respected valued and connected to unseen, which they the elimination of unfair and valued irrespective other employees or the HEALTH AND WELLNESS were born with or have discrimination of identity/background organisation acquired Highlights FY2025 Key indicators: Key indicators: Key indicators: Key indicators: Race, gender, religion, Appointments, Fair treatment, Belonging, valued, Wellness program New workplace programs addressing mental health, menopause, grief, and loss were sexual orientation, age, promotions, pay, psychological safety, acceptance, connected development successfully introduced and positively received by employees. culture, sub-culture, development and trust, involvement in ethnic minorities, etc performance decision making Disability The number of employees identified as living with disabilities grew from 1 201 in FY2024 management identification to 1 308 in FY2025, supported by health and wellness initiatives. Health awareness There was a notable increase in employee engagement in health-focused sessions Over the years we have made a significant participation covering lifestyle illnesses, cancer awareness, sick leave, and disability assessments contribution in achieving employment equity in boosting overall workforce well-being. South Africa, both in terms of representation at all occupational levels and overall employment. EAP engagement Employee engagement with the Employee Assistance Program increased from 11.4% growth to 13.9%, indicating stronger trust in mental health services and a proactive wellness Employee representation for FY2019 – culture. FY2025 Post-pandemic mental Mental health concerns, such as stress, depression, and burnout increased following 100 health response COVID-19, prompting the development of a targeted stress management program 90 encouraging use of counselling services. 80 70 60 Health and wellness is one of the levers of the culture program at Eskom. It plays a critical role in fostering resilience, Percentage (%) 50 enhancing quality of life, improving morale and engagement, increasing productivity, and promoting a safe, healthy, 40 and supportive work environment to employees. The thrusts of our health and wellness strategy include the 30 five pillars: prevention; treatment, care and support; education and awareness, partnerships, and monitoring and 20 evaluation. 10 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 10.7 Financial Year 12.8 Female employees Black employees Black female employees Employees living with disabillities 46 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued Below is the performance dashboard of our Health and Wellness for FY2025. Programme engagement rates 5 090 5 090 Health and Wellness index – Group level (YTD progress Insights against annual targets) 3 675 3 473 Health and Safety Performance Snapshot – Eskom Group 3 448 3 328 (Mar 2025) 3 051 Tolerance Tolerance Target 90% 2.04 3,5 SAFR: 1.85 – below tolerance level of 2.04 2 434 2 344 1.85 2.53 95.12% GSAR: 2.53 – still under tolerance threshold Sick Absence frequency Gross Sick Absenteeism Fitness for duty Fitness for duty (FFD): 95.12% – remains above target Rate (SAFR) % Rate (GSAR) % (FFD) % Medically boarded: 99 employees to date via medical 1 231 1 185 incapacity process 1 009 827 Tolerance Occupational diseases: 15 confirmed cases 790 751 Tolerance Tolerance 694 581 <20 >85% >48 341 289 Ill-health retirement (lifestyle diseases): 100 139 15 100% 41 Number of employees who • Four applications approved in March 2025 % of reported Approved ill health retirement contracted Occupational • 41 approved to date by EPPF Individual Clinical Group Online Topic Webinars Learning and Occupational Diseases due to Lifestyle diseases Diseases Trauma and wellness outreach: cases group trauma access talks organisational Tolerance Engagement rate Legend: • 954 individuals attended trauma intervention sessions development Apr 2022–Mar 2023 Apr 2022–Mar 2024 Apr 2024–Mar 2025 <157 10.40% In circle – Threshold • 71 trauma sessions held (mainly related to death or accidents) 142 13.90% On circle – 2025 • 31 072 engagements with mental health wellness events Deaths in service EAP services Performance and webinars Programme Description Individual cases One-on-one confidential counselling for personal, emotional, or work-related issues. Our EAP continues to track and report on the most commonly presenting six problems. We have representative data over the past three years and have seen mental health concerns consistently remaining the most prevalent issue, Clinical group Therapeutic group sessions for shared challenges and peer support. accounting for nearly 30%. This highlights the ongoing need for robust mental health support in the organisation. Top 6 EAP presenting problems Group trauma Debriefing sessions for teams impacted by critical incidents (e.g., accidents or loss). 5.64 EAP utilisation and engagement overview Online access Digital availability of certain resources and sessions (details not specified). 4.87 Total reached to date: 6 034 individuals Brief expert-led talks on psychosocial wellness and awareness. • 3 328 individual cases Topic talks • 1 521 clinical/trauma group participants 12.33 29.43 • 1 185 LiveWell/Hub engagements Webinars Interactive virtual wellness sessions accessible to all employees. Referral breakdown (individual cases): L earning and • 3 048 self-referrals organisational Workshops and training to boost wellness leadership, team skills, and organisational health. development • 153 assisted referrals 10.43 • 127 formal referrals While individual case engagement slightly declined over the three years (from 3 473 to 3 328), and clinical Engagement rate: 13.90% – exceeding target of 10.40% group participation dropped notably in FY2025 (from 827 to 581), other areas showed substantial growth. 16.08 Group trauma support peaked in FY2024 before slightly decreasing; while learning and organisational development saw strong uptake in FY2024 (5 090 participants), followed by a decline. Online access, topic Mental health Relationship issues Personal development Workplace issues talks, and webinars showed consistent and significant increases, with webinars rising sharply in FY2025 to 1 009 Child and family care Loss issues attendees. This reflects a successful shift toward virtual platforms and broader accessibility. The data suggests a growing preference for digital engagement methods, underscoring the importance of strengthening our online infrastructure, revitalising in-person services, and maintaining regular evaluation to align offerings with evolving employee needs. 47 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued Overall engagement rate ORGANISATIONAL EFFECTIVENESS ESKOM ORGANISATIONAL CULTURE AND operational excellence, people prioritization, financial We aim to drive Organisational Effectiveness (OE) CHANGE MANAGEMENT prudence, a values-driven culture, and customer- 13.90 and a sense of belonging and connectedness to The Eskom 1:1:6:10 Culture Transformation centricity are reinforced by ten essential levers that 76 Eskom by fostering a high-performance ethical Programme highlights our unified purpose, a shared shape our organisational culture. 11.11 11.50 culture, engaging with employees, and offering a rich aspirational culture, six core culture pillars, and Employee Value Proposition (EVP). ten key culture levers. These pillars accountability, Apr 2022– Apr 2023– Apr 2024– Mar 2023 Mar 2024 Mar 2025 10.7 12.8 Total Engagement The engagement rate of the programme has demonstrated a steady upward trajectory over the three-year period under review. For the period April 2022 to March 2023, the engagement rate stood at 11.11%. This figure increased marginally to 11.40% between April 2023 and March 2024, reflecting a positive shift in participant interaction with the programme offerings. Significantly, the most recent period, April 2024 to March 2025, recorded a notable increase in the engagement rate to 13.90%. This improvement may be attributed to enhanced visibility of the programme, intentional marketing of EAP services using the various platforms (digital) such as webinars and online resources, and the relevance of the content provided. The health and wellness teams in the organisation continue to promote physical wellness program that includes various sporting, recreational and cultural codes. In this past year we have seen an increase in employee participation and attendance of health events including health and wellness webinars arranged as per the health and wellness calendar. Our 1.1.6.10 Eskom Culture Transformation Programme is a key enabler for delivering a high-performance ethical culture. Our Turnaround Programme tracks key activities and milestones and is currently being used by line divisions to improve productivity and efficiencies. Divisions are implementing their divisional culture dashboards, culture KPIs, and action plans and the leadership teams actively engage, establish commitment, drive performance, and obtain buy-in from their employees. Our Change Management Strategy continues to focus on three objectives, alignment, engagement, and buy-in and behaviour modification among key stakeholder groups. 48 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued ESKOM HUMAN CAPITAL SURVEY The 1.1.6.10 Eskom Culture Journey Map is highlighted on the image below, together with key focus areas and To measure the 1:1:6:10 Eskom Culture Transformation Programme, a series of metrics exists, one of them being culture index targets that will help the business transition into the next growth phase. the Eskom Human Capital (HC), OE Survey and specifically, the Organisational Culture component of that. Our HC OE Survey and other pulse surveys are designed to assess employee views on several key dimensions and Culture targets inform management on areas of focus. Year 1 Year Year 3 Year 4 Year 5 2022/23 2 2023/24 2024/25 2025/26 2026/27 THE INTEGRATED ESKOM HUMAN CAPITAL OE SURVEY 3.5–3.6 3.6–3.7 3.7–3.8 3.8–3.9 3.9–4.0 • Define Eskom’s • Launch the • Kaizen: Assess gaps • Integrate • Define Eskom’s “As is vs To be” 1:1:6:10 and review process 1:1:6:10 into Future Journey Map organisational communication and programme systems and • Display confidence as Employee Engagement Employee engagement focufocuses ses on h Employee Value Employee valueProposi tion refi r refers proposition o a se, Culture i is Culture a aysystem em of of harshared d a ump ion , culture campaign • Promote on technologies a leading organisation value , and beli f , which gov rn and ondegr of po 1 1ve or n ga ive the degree f positive or toofaa set socia ion and offerings provided by h of associations and offerings assumptions, values and beliefs, • Review • Develop leadership stability, • Improve in a competitive emo ional a achmen a p r on has o organi a ion in r urn for he skill , influence how employe s b have, speak, negative emotional attachment provided benchmarking Divisional Culture recognition and efficiencies and market heir company, job, and colleagues. capabilitiesby and the organisation experiences inha an which governs heir and perform and influences how h du ie wi hin a person has to their company, return forbrings the skills, and best Dashboards and celebrate successes drive innovation • Assess operational employee o heircapabilities organi a ion.and employees organisa ion. behave, speak and practices on KPIs • Drive line business • Monitor and performance based job and colleagues. experiences that an employee brings perform their duties within the culture-change • Establish a ownership and measure on culture-change to their organisation. organisation. • Co-design Divisional Change disciplined execution effectiveness of efforts Eskom’s Agent Network amongst EMPSG programmes • Display culture aspirational (CAN) • Establish customer • Build capabilities alignment between Analysis of the Eskom HC OE Survey results has revealed that Eskom employees are observing an incremental culture and • Drive hope, good centric programmes for the future divisions/subsidiaries shift in the organisation’s culture and leadership stability has had a significant influence on this. The participation purpose news stories and focus on • Launch the • Reinforce the right in this survey saw an unprecedented increase, which serves as a strong indicator of improved employee morale. • Finalise the and promote operational 1:1:6:10 Culture behaviours, practices Over the reporting period, the scores for Employee Engagement, EVP, and Organisational Culture have all shown 1:1:6:10 culture employee well excellence Mobile App and values through growth, further reflecting the upward trend in employee morale. cornerstones being • Embed 1:1:6:10 into storytelling and visual and enablers business processes depictions •• • •.. •" •• Focus on •... Define the 'As Is" and .,,• D ive Awareness Integrate •.." Systems •ii Sustainability and 4 "To Be" Culture and •• • •• and Reinforcement Understanding •"• . " •• ., ., Build a Guiding Processes • Coamion , "' •• • •• •..• ., ..• ••• ... • •• • ••• •• ••• .. •• ••• •• ..•• •• .... ••• • ...... •• • •.. •• •." •• ••• ..• • - - •• ., . , Year 1 • •• Year 5 , • Year2 �ear 3 2022123 ,2023/24 • FY24125 • •., FY26J27 ! 49 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued ESKOM EMPLOYEE VALUE PROPOSITION At the heart of Eskom’s sustainability strategy lies a deep commitment to its people. Our EVP reflects its dedication to fostering a workplace that not only attracts top talent but also inspires, nurtures, supports, and retains competent and thriving employees thus improving staff well-being and uplifting the overall morale of the organisation. Eskom’s EVP strives to create meaningful experiences for employees at work. Through a carefully curated experience across five key dimensions as illustrated below, we deliver consistent value to its employees while reinforcing our identity as an employer of choice. People Work Growth Rewards Organisation Growth is supported via upskilling, An inclusive, ethical and high-performance Employees benefit from competitive pay, Eskom drives community impact through Eskom promotes purpose-driven work mentorship, job rotation, formal learning culture fosters leadership, diversity, equity performance incentives annual increases, CSR initiatives, supports inclusion through through a results-orientated culture, and career pathways like recruitment, and belonging – ensuring that every and a wide range of health, retirement and woman and disability programmes and offering employees impactful projects, secondment, apprenticeships and employee feels valued and heard. wellness benefits. maintains strong environmental compliance cross-functional collaboration and national learnerships. exposure. Together, these elements reflect Eskom’s ongoing ESKOM EMPLOYEE ENGAGEMENT During these engagements, we focus on achieving a During the reporting period, over 20 people centred commitment to delivering a holistic and sustainable PROGRAMME number of objectives including: engagement sessions were held, led by our Group employee experience, one where individuals feel Our employee engagement focuses on rebuilding • Share key messaging: Communicate important Chief Executive. The Guardian and other engagement motivated, valued, and inspired to grow. relationships with employees and helping them feel updates and organisational priorities. publications continue to leverage positive engagement more connected to the business and to one another. • Facilitate dialogue: Encourage open conversations outcomes and reach as many employees as possible. This contributes to building a high performance and and feedback. ethical culture through creating a sense of connection • Promote recognition: Highlight and celebrate and belonging. employee contributions. We deliver employee engagement in Eskom through • Celebrate success: Acknowledge achievements multiple platforms including effective employee and across the organisation. leadership engagements and site visits, inclusive of diverse employees across all task grade levels and business areas. These engagements aim to share key To further support Eskom’s EVP, we have been messaging, facilitate dialogue, promote recognition, recognised as a Top Employer for 2025 by the Top and celebrate success across the organisation. Employers Institute. We deliver employee engagement through multiple This prestigious accolade places us among an elite platforms, which include: group of organisations globally acknowledged for • Leadership and employee interactions: Effective their dedication to creating an exceptional workplace, engagements that connect leaders with employees. by developing and embedding HR policies and • Site visits: On-the-ground engagement across people practices. The Top Employers Institute is the various locations and operations. number one global authority on HR strategies and • Inclusivity across all levels: Involving employees certification. This achievement reinforces Eskom’s from all task grades and diverse business areas. dedication to employee growth, well-being, and empowerment. 50 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued OCCUPATIONAL HEALTH AND SAFETY Occupational Health and Safety (OHS) is crucial to business operations, ensuring the well-being of all individuals, boosting productivity, and enhancing employee morale through the implementation of comprehensive OHS measures outlined in our OHS Strategy. 6th life-saving rule Occupational hygiene Contractor safety Asbestos survey Person job specification Benchmark with SARS The initiation of the 6th Life-saving SANAS completed Eskom’s To improve contract and contractor Company-wide asbestos survey The OHS team hosted PJS Revision In the context of benchmarking, Rule (related to live-line work) has occupational hygiene surveillance safety management industry-wide, provided insights into current status, 12 workshops, sharing recordings, R&S OHS engaged with SARS to been a success, showcasing a assessment with no non- Eskom collaborated with Eswatini legal compliance, and progress logs, presentations, and templates discuss the Incident Management productive alliance between conformances. The system was Electrical Company in a toward Eskom’s 2033 phase-out to support smooth implementation Process implemented in SAP EH&S. management and labour to avert adequate, technical competence benchmarking initiative, offering target, helping track implementation across Eskom following sessions on During this interaction, SARS injuries and loss of life in the confirmed, and two applicants insights into contract management across relevant divisions. 11 and 12 February 2025. provided insights into their live-line work environment. recommended as Technical for occupational health and safety. methodology for documenting the Signatories. inspections that are conducted We held our first-round table session with the main Separate documents were developed for the Employment and Labour, to create a Code of Practice A successful General Machinery Regulations (GMR)2 topic being “Communication: The Cornerstone.” The Appointment of Substance Abuse Testers and the for Conveyor Systems. conference was hosted by Eskom with the primary session underscored the importance of effectively Appointment of Substance Abuse Screeners as well goal of enhancing understanding of the responsibilities communicating safety procedures and protocols as a practice note to formalise this improvement in In our unwavering commitment to social responsibility, of our GMR appointees. Various critical topics were to promote positive behaviours and a secure work order to clarify the requirements in the Management Eskom prioritises the health and safety of the public. As covered concluding with a roundtable discussion on environment, while fostering a Zero Harm culture. of Substance Abuse in the Workplace Procedure part of our continuous efforts to improve on this, a self- operational issues. The GMR2 conference is planned The inaugural session’s positive outcome clearly specifically concerning individuals required to conduct assessment was conducted for public safety. This ongoing to be held annually to ensure continual improvement. accentuates the importance of communication within screening and/or testing as part of their Eskom duties, assessment focused on analysing the effectiveness and efficiency of the National Public Safety Work Group, A key highlight in our occupation health and safety our organisational context. This proactive initiative has we had to review this procedure. management is that our employee LTIR remains the potential to correct deviations and prevent unsafe which meets quarterly, demonstrating Eskom’s long-term We have recognised the importance of raising commitment to public safety. within the tolerable levels as set in our shareholder practices and conditions. compact. We have achieved progress in improving awareness and identifying psychosocial hazards in We have also launched our new safety campaign our employee LTIR, nonetheless, the occurrence of the workplace. These hazards are likely to negatively “See Act Immediately”. This initiative is about fatalities remains a serious concern. impact employees, resulting in staff turnover, physical symptoms (e.g., fatigue), and emotional symptoms boosting safety performance and inspiring positive (e.g., burnout). Bringing attention to this issue will behavioural change. The aim is to create a positive Employee LTIR for FY2019 – FY2025 help managers understand the importance of creating and proactive culture of occupational health and 0.35 a supportive and positive work environment, which safety within the organisation. LTIR (per 2 000 000 hours worked) 0.30 can boost employee satisfaction, engagement, and A major milestone was reached with the full productivity whilst promoting Sinobuntu. 0.25 implementation of the Ergonomics Compliance We were a key contributor to a national initiative Assessment. This organisation-wide initiative is 0.20 that aimed to enhance conveyor belt safety across designed to safeguard the health and safety of 0.15 industries. This was a collaborative effort, with individuals vulnerable to ergonomics-related risks in Eskom working alongside industry leaders such as the workplace. It is focused on assessing compliance 0.10 the Conveyor Manufacturer Association (CMA) of with the Ergonomics Regulations of 2019 and 0.05 South Africa, Grinding Media of South Africa, and pinpointing specific operational requirements. 0.00 Scaw Metals, in partnership with the Department of FY19 FY20 FY21 FY22 FY23 FY24 FY25 Financial Year 12.8 Eskom employee LTIR Eskom tolerance level 51 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued Protecting the safety of both our employees and the Health and Safety Highlights for FY2025 public is our utmost priority. Although certain areas have shown clear progress in their safety practices, the persistence of workplace fatalities remains profoundly • Hosted a roundtable on “Communication: • Completed self-assessment for the National troubling and wholly intolerable. Since FY2021 the Strengthening The Cornerstone”. Public safety Public Safety Work Group. total number of fatalities has been decreasing as a communication • Reinforced Zero Harm through clear safety commitment • Reinforced long-term public health and safety testament to the many safety initiatives and awareness and safety protocols. priorities. sessions we have continually implemented. We remain culture • Positive results encourage proactive risk • Strengthened understanding among General committed to intensifying our efforts to enhance prevention. Machinery Regulation appointees. GMR2 safety protocols, cultivate a vigilant workplace culture, • Conveyor Belt Safety conference • Annual sessions planned for continual and ensure that every team member returns safely to • Partnered with CMA, Grinding Media, Scaw improvement. their loved ones. National Metals, and Dept. of Labour. collaboration • Identified risks such as burnout and fatigue. • Contributed to a Code of Practice for safer Psychosocial Fatalities for FY2019 – FY2025 • Promoted supportive, engaging work conveyor operations. hazard environments in line with Sinobuntu management • Nationwide assessments aligned with 2019 principles. 76 Ergonomics Regulations. Ergonomics New campaign • Encourages proactive safety behaviours. compliance • Focus on mitigating ergonomic risks for – See – Act • Aims to drive cultural change and improved employees. immediately performance. 8 • Formalised appointment process for Number of individuals Substance Abuse Testers and Screeners. • LTIR within shareholder compact limits. Substance abuse 4 2 management • Updated procedures with a new practice LTIR • Fatalities remain a priority concern despite 9 note to clarify roles and standardize processes progress. 3 3 4 2 3 3 2 2 1 FY19 FY20 FY21 FY22 FY23 FY24 FY25 10.7 Financial Year 12.8 Employee fatalities, number Contractor fatalities, number 52 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued OUR COMMUNITIES Focus area Objective We cultivate mutually beneficial partnerships with our workers, suppliers, and host communities, equipping them with skills and opportunities through our Skills and Capability Building Increase the number and skill level of South African workers in energy-related sectors, focusing on supplier and enterprise skills. value chain. To empower communities and promote equitable economic growth, our activities are concentrated on tackling unemployment, improving education, and developing enabling infrastructure. Enterprise Development Grow enterprises owned by designated groups to become suppliers in the energy sector. We collaborate with our contractors to deliver creative Corporate Social Investment (CSI) and Socio-economic Development activities that drive positive social change and the development of the Supplier Development Support supplier growth through contracts or subcontracts, especially for development programme graduates. local community. This helps us to establish strong relationships with our stakeholders. Our community development programmes cover five Localisation and Expand local manufacturing to drive economic growth, reduce inequality, and improve procurement performance. focus areas. Industrialisation Corporate Social Investment Uplift communities with school upgrades, healthcare access, electricity improvements, and community-focused interventions. ELECTRIFICATION and essential service centres located in ‘at-risk’ The electrification program is a vital social communities. Additionally, a regulatory framework for initiative focused on expanding electricity access to microgrids is currently being formulated in partnership communities that have historically been unserved or with NERSA and other relevant stakeholders, aimed underserved, especially in rural areas. By providing at creating guidelines and standards for the effective reliable power, the program supports a range of implementation of microgrid technology. socio-economic improvements, including better living conditions, enhanced access to education and To date, over 94% of South Africans have access to healthcare, and increased opportunities for economic electricity, which surpasses the NDP target of 90% growth through small businesses and agricultural by 2030. We have also implemented 114 800 new development. electrification connections in FY2024 and 83 031 in FY2025. South Africa aims for universal electricity access by connecting 97% of households to the grid, ESKOM DEVELOPMENT FOUNDATION with 3% remote and rural areas to be served via IMPACT off-grid microgrids. Reaching these regions poses The ESDEF, one of our wholly owned subsidiaries, challenges due to high costs, tough terrain, and sparse is responsible for executing Eskom’s CSI strategy to populations, yet remains vital to national development achieve critical developmental goals and improve and improving citizens’ quality of life. the quality of life within the communities where we operate. Our CSI strategy aims to create an enabling To tackle the issues related to rural electrification, environment that maximises the impact of our our plans involve the installation of 50 microgrid units socio-economic contributions through six key levers. annually for the next five years. These microgrids will CSI initiatives are focused on education, health, the utilize renewable energy technologies, particularly environment, enterprise development, food security, solar photovoltaic systems, to bring electricity to areas rural communities, infrastructure development and that have not previously had access. The focus will be socio-economic upliftment. on providing these units to hospitals, clinics, schools, 53 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued CSI is a cornerstone of our commitment to uplifting ESDEF successfully implemented several high-impact the communities we serve. We believe that giving community CSI projects. Notable achievements back is not only a responsibility but a vital part of included the completion of a multi-purpose community building a sustainable and inclusive future. Our CSI centre in Empangeni, KwaZulu-Natal, and the initiatives aim to make meaningful contributions in delivery of disaster-relief support to flood-affected areas such as education, health, youth development, communities. This relief effort involved distributing and socio-economic upliftment. essential supplies and constructing 26 mobile classrooms to support five schools in the region. Skills and Capability CSI Spend for FY2019 – FY2025 Building 146.2 132.4 76 Enterprise 123.8 Industrialisation and Supplier Development 93.1 75.1 Total (million rands) 67.4 70.6 CSR strategy FY19 FY20 FY21 FY22 FY23 FY24 FY25 10.7 Financial Year 12.8 Manufacturing Localisation Our CSI spend in FY2019 was R132.4 million, reflecting a strong baseline investment in community development, we saw a decrease in spend during Legacy and the COVID years due to restricted access to Community communities, we are progressively increasing Outreach Projects our investment into CSI projects. The sustained increase highlights our commitment to giving back to the communities in which we operate, reflecting our broader dedication to social development, sustainability, and positive long-term impact. In FY2025, the Foundation rolled out targeted communication campaigns to amplify the impact of CSI initiatives across the group, leading to a notable improvement in related outcomes. Education continued to be the primary focus area, with R38.2 million allocated to educational initiatives. A key priority of the CSI strategy is to build a future-ready skills pipeline for both Eskom and South Africa, with investments spanning the full educational spectrum, from early childhood development to tertiary education and a strong emphasis on Science, Technology, Engineering, Mathematics, and Innovation (STEMI) fields. 54 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued During the year, we also concluded strategic SOCIO-ECONOMIC DEVELOPMENT Eskom was issued a new B-BBEE certificate in Between FY2019 and FY2024, there has been an partnerships with organisations that share our We make an indirect contribution to the economy February 2025, achieving a B-BBEE status of level increase in Total Measured Procurement Spend CSI ambitions, including Transnet, the National by procuring goods and services from a wide range 3 and exceeding the shareholder compact target (TMPS) spent from 144 billion to 240,4 billion. Development Agency (NDA) and the Small Enterprise of economic sectors, which in turn stimulate activity of level 4 for the 2025 financial year. This year, saw However, there was a decline in FY2025 (R220.3 Development and Finance Agency (SEDFA), to better across their respective value chains. Our procurement us achieve our highest performance to date in the billion). Spend on B-BBEE compliant suppliers and leverage resources and funding and maximise our strategy is intentionally designed to drive sustainable skills development category, driven in part by our black-owned business has increased over the seven- collective impact going forward. local development by aligning with national continued support for Government’s YES programme. year period. FY2025 resulted in the highest spend on transformation priorities. Through this approach, we black youth-owned businesses and black female- Together with the Mpumalanga Department of aim to unlock economic growth, promote localisation Our positive procurement equity performance was owned businesses to date. Economic Development and Tourism, we held a two- and industrialisation, generate employment recognised, although opportunities remain to improve day Business Connect gathering with SMMES from opportunities, and support skills development procurement spend with certain designated groups. During the year, we awarded 1 786 contracts worth across the province of Mpumalanga at the Municipal throughout South Africa. R338.6 billion at company level, achieving 93.79% local Banquet Hall from 05-06 March 2025. Throngs of Regrettably, the management control category was content (2024: 1 309 contracts, with 90.72% local delegates from the Mpumalanga business community We are committed to developing local suppliers negatively affected by the lack of female executives content). Of these, 362 contracts were related to and various exhibitors attended the event and were in alignment with South Africa’s transformation in top management at the time that the B-BBEE designated sectors, resulting in 85.83% local content taken through processes of conducting business with objectives, with a strong focus on key local supply verification was conducted, although this has since spend in designated sectors (2024: 203 contracts, with Eskom and the available business opportunities in an sectors relevant to our industry. Our dedication to been addressed. 60.34% local content for designated sectors). endeavour to strengthen engagements with SMMEs advancing local supplier development is in line with Procurement spend with B-BBEE compliant suppliers ENTERPRISE AND SUPPLIER DEVELOPMENT and foster sustainable economic development. South Africa’s transformation goals, with a particular has improved, successfully meeting the shareholder Our contribution to supplier development amounted emphasis on critical local supply sectors relevant An array of speakers shared perspectives on key compact target of 80% for the year. We achieved only to R12.3 billion, exceeding the target of R6 billion to our operations. Our initiatives complement topics amongst others; Solutions to reducing South the procurement equity target for black youth-owned (2024: R8.3 billion), largely due to subcontracting government-driven local development efforts by Africa’s energy challenges, SMME skills development spend for the year. Targets across other categories through coal contracts. We invested R7 million in fostering the growth of domestic industries and and capacitation, the Eskom Roadmap, JET, the were not met due to previously compliant suppliers enterprise development, exceeding our target of strengthening local manufacturing and production, nuclear strategy, Mpumalanga’s approach on SMME electing not to renew their B-BBEE certificates. R5 million (2024: R6.1 million). Various initiatives as outlined in the Shareholder Compact and Eskom’s development, Building sustainable incubation Transformation Plan. We place a strong priority on were conducted to support SMMEs, including We continue to monitor supplier compliance programme, Transmission Development Plan and local employment and contracting for projects, helping training on business skills, tender requirements and and request suppliers to maintain valid B-BBEE Air Quality Offsets. Delegates were afforded an to meet community employment needs, enhance other key topics. Over 1120 SMMEs benefited from certification to reduce the extent of spend with non- opportunity to robustly engage with presentations local skills and employability, increase income for local development opportunities through these initiatives. compliant suppliers. made over the two-day period. businesses, and ultimately stimulate economic activity Over the next three years, we aim to invest a total Looking ahead, future initiatives will include in surrounding areas. Procurement Spend for FY2019 – FY2025 of R27 billion in supplier development, mainly due to support for community electrification programmes, Our substantial coal offtake plays a significant role 300 procurement spend with developing suppliers, and development of SMMEs, incubation and localisation in driving economic activity and job creation across R230 million in enterprise development programmes in support of Broad-Based Black Economic the value chain. Through our supplier development, 250 Empowerment (B-BBEE), as well as opportunities localisation and industrialisation programme, we Spend (billion rands) 200 inked to Eskom’s JET. support economic development and supplier transformation to help build a sustainable economy 150 and advance the goals of the National Development Plan (NDP). 100 50 0 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Financial Year 12.8 Total measured procurement spend Spend on B-BBEE compliant suppliers Spend on black-owned businesses Spend on black women-owned businesses Spend on black youth-owned businesses 55 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued CASE STUDY EMPOWERING LOCAL ENTREPRENEURS – THE MOBILE AND APPLIANCE REPAIR CART INITIATIVE In response to youth unemployment and the need for inclusive economic growth, Eskom CAS tender Eskom, in partnership with Vodacom, Vodacom SD&L obligation dashboard initiated the Youth Enterprise and Skills subcontracting Development Program. This collaboration harnessed mobile business infrastructure, Eskom contract value R547m digital tools, and training to empower young people and stimulate enterprise in communities surrounding Eskom’s Total target 30% power stations (Kendal, Lethabo, Majuba, Matimba, and Matla). Number of subcontrators 7 EMEs Vodacom subcontractor payments Programme objectives: • Equip local youth with technical and R264 452 182.25 business skills. A total of 7 EMEs were contracted to supply, • Foster sustainable small business equip, or support programme delivery. Ownership ownership using mobile units. demographics: 6 black owned, 1 black woman- owned, 1 black youth-owned and 1 black • Support B-BBEE by contracting local disabled-owned. EMEs (Exempted Micro Enterprises). • Encourage inclusive participation across race, gender, age, and ability. Key highlights: 106 local youth benefited through training This initiative demonstrates how aligned and enterprise support corporate partnerships can deliver measurable community impact. Through localised 7 youth received fully equipped mobile empowerment, digital enablement, and technical repair carts. enterprise support, the Eskom-Vodacom 37 local youth received food selling carts Youth Enterprise Programme is contributing meaningfully to South Africa’s inclusive growth and youth development goals. 56 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Our Social Footprint continued COAL SALES – CONTRIBUTION TO Our coal supply chain supports transport services, To guarantee that the suppliers are delivering a quality Conversely, the decline in sales to the industrial and SOCIO-ECONOMIC DEVELOPMENT which stimulates the logistics and automotive service, our coal strategy focuses on coal quality mining sectors highlights the impact of economic Eskom continues to be the one of the largest purchasers sector. Economic opportunities, employment skills initiatives at specific sites and provide assurance that pressures and a shift toward decentralized, renewable of coal in South Africa, we consistently purchase over development and CSI programmes are generated the coal quality paid for from source is the same coal energy solutions. The growing adoption of embedded 100Mt of coal on an annual basis with only a slight along the value chain further stimulating the economy. quality received. We are focusing on automating all self-generation, particularly solar, reflects a positive decrease observed in FY2023. In the 2025 financial processes related to coal management to address trend toward cleaner, more sustainable energy Our coal strategy focuses on reducing coal costs efficiencies and prevent fraud, crime, and corruption. practices, though it also presents challenges to year, around 107 million tons of coal were procured and and improving coal contract management. Until We have partnered with Vodacom to implement a traditional sales models. Additionally, the exclusion delivered to the power plants. Of this, 39% was acquired 2050, our power plants will need from 650 million coal automation system to increase visibility in the coal of R11.9 billion in unrecognized revenue, due to through short and medium-term contracts, 36% through tons to 750 million tons of coal, depending on the value chain and manage the quality and quantity of coal collectability concerns, raises important considerations long-term cost-plus agreements, and 25% through demand for electricity. This demand is expected delivered to our power stations via conveyor belts, rail around our financial sustainability and the need for fixed-price contracts. We’re driving transformation in to create economic opportunities in the regions and trucks. We have engaged the services of the relevant strengthened credit risk management in support of the mining industry by sourcing coal from companies that where we operate and contribute to local economic law enforcement agencies and competent private long-term viability. It is critical going into the future adhere to the 26% mining charter criteria. development. Generation is securing long-term coal security outfits to deal with coal security matters. that we reinforce our human resource capabilities in contracts through station-specific tenders for the managing this relatively new dimension of our business. Coal Purchased (volumes) for FY2019 – rest of the fleet to reduce price path fluctuations and ELECTRICITY SALES AND REVENUE FY2025 increase price certainty. Supply contracts have been We saw a growth in revenue primarily driven by a MANAGING MUNICIPAL DEBT awarded following requests for proposals (RFPs) 12.74% tariff increase and a 3.5% rise in sales volumes Municipalities account for about 42% of electricity sales, 118.4 119.3 110.0 109.0 issued to the market for the Arnot, Camden, Kriel, (6.4TWh) and the improved operational stability and yet persistently low payment rates and rising unpaid 108.0 107.0 76 98.4 Matla, and Tutuka power stations. energy availability, largely due to enhanced generation accounts significantly undermine our revenue and plant performance and a reduction in loadshedding financial stability. Despite implementing a multi-pronged We actively support the development of junior also had a significant contribution. This operational strategy, including negotiated payment plans, legal action, miners in our coal supply chain through a reliability supports broader socio-economic resilience. intergovernmental collaboration, and targeted support standardized procurement process. All suppliers Volumes (Mt) for struggling municipalities, arrear municipal debt undergo the same due diligence before contracting, Notably, increased sales in the international, continues to escalate. By year end, outstanding municipal ensuring consistency, fairness, and reliability. We distributor, and commercial segments emphasise our debt had grown to R94.6 billion, up from R74.4 billion have in some instances experienced criminal activity role in regional energy security, particularly through in 2024, with projections indicating a potential increase which affects our operations and reliability of emergency and adaptable non-firm sales during periods to about R329 billion by 2030, assuming capital growth supply. Our coal fleet has been facing challenges of of hydropower shortfalls caused by reduced rainfall. is curbed and does not exceed the assumed tariff path. increased deterioration of the plant assets damage The establishment of firm power supply agreements Resolving the municipal debt issue is critical to improving FY19 FY20 FY21 FY22 FY23 FY24 FY25 due to inconsistent coal quality delivered from coal with Botswana, Namibia, and Zambia further reinforces cash flow and ensuring long-term financial sustainability 10.7 Financial Year 12.8 suppliers. The coal quality issues largely occur when regional cooperation and energy sustainability. for the business. coal purchased from mines is stolen and swapped out for inferior coal during transit. 57 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Research and Development R&D focus areas Resolving Futuristic Operational Research to Research and Specialised Fast-track Digitalisation & Technical Product Testing Challenges JET Development Emissions, frequency controls, technical Microgrids, repowering/ repurposing, smart Green hydrogen, ash roads, digital Provision of specialised testing and Use of Artificial Intelligence (AI) and and non-technical losses electricity, e-mobility and digital revolution transformation analytical services including sustainable application in Operation and Maintenance energy research solutions (O&M) Our research and development is conducted by and innovation to ensure that Eskom remains both In building a culture where innovation is part of our organisation, across power stations, substations, our Research, Testing and Development (RT&D) competitive and sustainable. everyday thinking, we recognise the important role control rooms, workshops, and offices. We have business unit with the key responsibility of supporting of innovation and creativity in building a sustainable brought several innovative ideas to life. Eskom’s sustainability, balancing financial, social and Our RT&D strategy is shaped by multiple drivers business and a better future. We operate in one of environmental factors while strengthening the internal and is aligned with the organisation’s long-term the most long-term, dynamic, complex industries. One notable innovation is the Powerline Inspection competencies and ensuring Eskom remains at the roadmaps. In response to recent structural reforms of Daily, we are tasked with ensuring that South Africa Robot, a ground-breaking development that began forefront of energy technology advancements. The Eskom’s turnaround plan targeting enhanced technical has access to safe, reliable electricity while navigating as a master’s project and is now on track to change research agenda is shaped primarily by the needs of performance across generating, transmitting, and ageing infrastructure, growing demand, and the shift how we manage and maintain our national powerlines. our core business, the line divisions, and subsidiaries distributing businesses, improved financial health, to a more sustainable energy future. To meet these Originally developed by Mr Trevor Lorimer and former with emphasis on applied research that delivers and a repositioning as a clean‑energy leader, RT&D is challenges head on, fresh thinking and innovation University of Kwa-Zulu Natal (UKZN) Professor hands‑on, operational solutions directly aligned with strategically structured and integrated with the new becomes critical. Innovation is not just about big Edward Boje, the robot was designed to make Eskom’s strategic objectives. At the same time, we operating model to effectively support these business breakthroughs, sometimes, it is about improving how powerline inspections faster, safer, and more efficient. invest largely in examining emerging technologies imperatives. The RT&D business is therefore made up we do the everyday things: faster, safer, smarter. Today, Lorimer heads Powerline Robotics as Managing of these three focus areas. Director, guiding a vision that started in the lecture hall From streamlining engineering processes, to and is now gaining momentum on the world stage. improving asset performance and designing better maintenance solutions, these are the ideas that can transform how we work and how we serve the country. For Eskom, that is where intellectual property management is critical. When we protect Specialised Testing and our ideas, we create space for them to grow into Research Specialised Consulting Analytical Services real solutions, and we ensure that we can lead with Operational, applied, strategic, Focussing on high-impact technical Routine and specialised laboratory confidence, creativity, and purpose. basic research, pilots and challenges as prescribed in the testing and analytical services for At the centre of this effort is our RT&D focussing demonstrations and research service level agreements with the the line division on various innovations. This includes, new materials, work funded through the National line divisions, Eskom subsidiaries Energy Regulator of South Africa and Eskom Rotek Industries, digital diagnostics, smart infrastructure, or future- (NERSA) allocation. focused technologies, that help us evolve and stay relevant in a fast-changing world. But RT&D cannot do this alone. Innovation lives everywhere in our 58 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Research and Development continued Backed by Eskom’s RT&D team, the Technology Eskom’s containerised microgrids are revolutionising Innovation Agency (TIA), and KwaZulu-Natal’s the way we think about energy. These “energy in a Department of Economic Development, Tourism and box” solutions come with a renewable energy source Environmental Affairs (EDTEA) Technology Transfer (solar or wind), battery storage smart inverter, and a Fund, the robot has already caught the eye of Tokyo self-healing control system capable of balancing real- Electric Power Company (TEPCO), proving that time supply and demand. Originally designed for rural homegrown ideas can make a global impact. electrification, these plug-and-play power hubs are now primed to provide EV charging in urban hotspots Now patented in both South Africa and the United and along national highways, without overloading the States, and brought to market through UKZN’s national grid. InQubate, this robot represents more than just innovation, it’s a reminder of what’s possible when Eskom’s microgrids can be either grid-tied for load collaboration, curiosity, and commitment come balancing or operate completely off-grid. This together. flexibility makes them ideal for remote areas, busy highways, or underserved urban locations. With As South Africa accelerates its transition to cleaner charging units ranging from 60kW to 180kW, each mobility, a major hurdle stands in the way: building microgrid can deliver nearly 1 300km of EV range a reliable, accessible, and grid-friendly electric per deployment. This means: four vehicles can be vehicle (EV) charging infrastructure. Eskom, with its fully charged from 0–100% or eight vehicles can be pioneering spirit and visionary leadership, is turning charged to 50%, using a 45kWh battery system. this challenge into an exciting opportunity – through Containerised microgrids that could very well These microgrid-based charging stations do more Eskom’s unveiling of Africa’s largest Battery The Hex BESS project serves as an inspiring example become the foundation of the country’s EV revolution. than just provide convenience, they are powered by Energy Storage System (BESS) at the Hex site of how intellectual property can be leveraged to renewable energy, which helps reduce the carbon in Worcester, Western Cape, stands as a beacon of create impactful, scalable solutions. It encourages In 2023 alone, South Africa saw over 1 200 new footprint of EVs while easing the pressure on Eskom’s innovation and a testament to the transformative innovators worldwide to pursue advancements that electric vehicles hit the road, and that number is ageing power infrastructure. It is a complete solution power of intellectual property in addressing critical not only address current challenges but also pave the only expected to grow. But for EVs to truly become that benefits clean transport, grid resilience, and energy challenges. The Hex BESS, with its 100MWh way for a sustainable and resilient future. mainstream, fast, reliable, and renewable, charging environmental sustainability. Smart control systems storage capacity, can power a town the size of Mossel solutions are essential. With only about 443 public Bay or Howick for approximately five hours. This This pioneering project not only addresses South manage supply and demand in real-time and even charging stations across the country, the threat of initiative is part of Eskom’s broader BESS programme, Africa’s immediate electricity needs but also repair themselves using embedded algorithms. range anxiety and infrastructure gaps remains a key which includes the installation of approximately exemplifies the role of intellectual property in Whether deployed in bustling cities, on long-distance barrier to widespread adoption. 833MWh additional storage capacity across eight fostering sustainable solutions. By integrating large- routes like the N12, or in rural regions, Eskom’s Eskom Distribution substation sites in KwaZulu-Natal, scale utility batteries and solar PV capacity, Eskom microgrids are redefining what is possible for EV Eastern Cape, Western Cape, and Northern Cape, is diversifying the energy mix and enhancing grid infrastructure. They are not just charging stations, complemented by about 2MW of solar photovoltaic stability, aligning with the nation’s commitment to a they are powerful symbols of innovation, ensuring (PV) capacity. just energy transition. energy equity, mobility, and sustainability. With containerised microgrids, Eskom is doing The collaborative efforts between Eskom, Hyosung more than just powering homes, we are energising Heavy Industries, and various funders highlight the highways, communities, and a cleaner journey towards importance of partnerships in driving innovation. a decarbonised transportation future. Battery Energy Storage has an important role in ensuring that power supply is available when needed, as well as improving power quality, especially with the addition of variable renewable energy to the grid. 59 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Supplementary Information ABBREVIATIONS B-BBEE Broad-Based Black Economic Empowerment Gx Generation – one of Eskom’s three OE Organisational Effectiveness operational divisions BESS Battery Energy Storage System OECD Organisation for Economic Co-operation and INEP Integrated National Electrification Programme Development CDP Carbon Disclosure Project IPCC Intergovernmental Panel on Climate Change OH-AIA Occupational Health Approved Inspection CMG Containerised Microgrids Authority IFRS International Financial Reporting Standards CO2e Carbon Dioxide and Carbon Dioxide OHS Occupational Health and Safety equivalent IPP Independent power producer/s P&SCM Procurement and Supply Chain Management COP Conference of Parties IRP Integrated Resource Plan PCB Polychlorinated Biphenyl CSI Corporate Social Investment IR Integrated Risk PDMAF Provincial Disaster Management Advisory CSIR Council for Scientific and Industrial Research IT Information Technology Forum CSR Corporate Social Responsibility ISSB International Sustainability Standards Board PFMA Public Finance Management Act DEE Department of Electricity and Energy JET Just Energy Transition PV Photovoltaic DFFE Department of Forestry, Fisheries, and the King IV TM King IV Report on Corporate Governance for RCP Representative Concentration Pathway Environment South Africa, 2016 RE Renewable energy DPE Department of Public Enterprises KPA Key Performance Area REIPPPP Renewable Energy IPP Procurement Dx Distribution – one of Eskom’s three KPI Key performance indicator Programme operational divisions LTIR Lost-time injury rate (employee) R&D Research and Development EAP Employee Assistance Programme LCF Loss control Function R&R Repowering and Repurposing EMS Environmental Management System MES Minimum Emission Standards RT&D Research, Testing and Development ERP Emission Reduction Plan Nat National Joint operational and Intelligence SDGs United Nations’ Sustainable Development ESG Environmental, Social, and Governance JOINTS Structure Goals ERCC Emergency Response Command Centre NAQO National Air Quality Officer SED Socio-economic development ERI Eskom Rotek Industries NDC Nationally Determined Contribution SES Social, Ethics and Sustainability Committee EVP Employee value proposition NDP National Development Plan SMART Specific, Measurable, Achievable, Relevant, EWT Endangered Wildlife Trust NDMC National Disaster Management Centre and Time-bound Exco Executive Management Committee NECOM National Energy Crisis committee SMME Small, Medium and Micro Enterprise FBS Failure of Business Systems NERSA National Energy Regulator of South Africa SOC State-owned company FGD Flue Gas Desulphurisation NGO Non-governmental Organisation SO x Oxides of Sulphur GCE Group Chief Executive NT National Treasury TDP Transmission Development Plan GEAPP Global Energy Alliance for People and Planet NTCSA National Transmission Company of South TMPS Total Measured Procurement Spend Africa GHG Greenhouse gas Tx Transmission – one of Eskom’s three NO2 Nitrogen Dioxide operational divisions (As of 1 July 2024, the GIS Group Investigations and Security National Transmission Company South Africa NO x Oxides of Nitrogen GRI Global Reporting Initiative (NTCSA)) OCGT Open Cycle Gas Turbine UNGC United Nations Global Compact 60 ESKOM HOLDINGS SOC LTD Sustainability report 2025 Our Reporting Suite and Approach Governance Environmental Management Our Climate Change Performance Just Energy Transition Our Social Footprint Research and Development Supplementary Information ABC Corporate information YOUR VOICE IN ESKOM’S SUSTAINABILITY Our sustainability is anchored in the proactive identification of ESG risks and the recognition of emerging opportunities. By integrating these insights into our strategic planning and operational initiatives, and ensuring they are governed through robust oversight structures, we are able to respond effectively and responsibly. Progress is continuously monitored and evaluated against clearly defined KPIs, enabling us to drive value creation and resilience. As a valued stakeholder, we ask that you provide your comments on how you think we can improve this performance and make a meaningful difference to our environment, our society and our economy. Comments may be sent to sustainability.report@eskom.co.za ESKOM HOLDINGS SOC LTD Incorporated in the Republic of South Africa Registration number 2002/015527/30 REGISTERED OFFICE Eskom Megawatt Park 2 Maxwell Drive Sunninghill Sandton 2157 PO Box 1091 Johannesburg 2000 Switchboard +27 11 800 8111 Customer call centre 08600 ESKOM or 08600 37566 DEBT SPONSOR Nedbank Corporate and Investment Banking, a division of Nedbank Limited JSE alpha code BIESKM FOR MORE INFORMATION INVESTOR RELATIONS Lerato Mufuma-Mashinini InvestorRelations@eskom.co.za MEDIA ENQUIRIES Daphne Mokwena MediaDesk@eskom.co.za GROUP CHIEF FINANCIAL OFFICER Calib Cassim OfficeoftheCFO@eskom.co.za QUERIES OR FEEDBACK ON OUR REPORTS IRfeedback@eskom.co.za sustainability.report@eskom.co.za Our suite of reports covering our integrated results for FY2025 is available at https://www.eskom.co.za/investors/integrated-results/ 61 ESKOM HOLDINGS SOC LTD Sustainability report 2025 www.eskom.co.za