Financial overview 2026 SUSTAINABILITY REPORT Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our value creation journey 1 OUR REPORTING SUITE AND APPROACH 3 ENVIRONMENTAL MANAGEMENT 5 ENABLING A RESILIENT LOW-CARBON ENERGY FUTURE Statement by the Chairman of the Social, Key Environmental Indicators 21 Ethics and Sustainability Committee 2 21 Air Quality and Emissions Performance Koeberg – Our Sustainable Success 39 Statement by the Group Chief Executive 3 23 Water Stewardship and Effluent Management Eskom Green and Renewable Energy The Year In Review 4 Circular Economy 25 Delivery 39 Our ESG Approach 5 Biodiversity and Natural Capital 26 Operational Decarbonisation and Cleaner ESG Reflections 6 26 Mobility 41 Strengthening Compliance Investing in Innovation 42 Future Outlook 26 42 2 GOVERNANCE Environmental Management Reflections 26 Low Carbon Energy Future Reflections 4 RESPONDING TO CLIMATE 6 OUR SOCIAL FOOTPRINT Eskom Board Social, Ethics and Sustainability CHANGE (SES) Committee 8 Human Capital 46 Legal Separation 9 Climate Change Response and Governance 28 Organisational Effectiveness 56 Transitioning to Cleaner Energy 10 Our Climate Change Strategy 28 Socio-economic Development Ethics 12 and Transformation 59 Carbon Tax and Emerging Climate Policy Requirements 28 Crime, Fraud and Corruption 12 Supplier Development, Localisation Regulatory Developments and Our Response 29 Cable, Infrastructure, Asset Theft and Vandalism 12 and Industrialisation 64 13 Regulatory Update on Carbon Budgets and Our Customers 68 Coal Theft and Fraud Mitigation Plans 29 Social Reflections 70 Public Finance Management Act (PFMA) Compliance 13 Impacts, Risks and Opportunities for Mitigation Stakeholder Management 14 and Adaptation 29 Integrated Risk Management Enterprise Resilience 17 18 Climate Scenario Analysis: Building Resilience in an Uncertain Future 31 7 RESEARCH AND INNOVATION Quality Management 19 Integrated Climate Resilience to Sustain Governance Reflections 19 Our Operations 32 Our Approach to Research and Innovation 71 Greenhouse Gas Emissions Reporting and Disclosures 36 Building the Next Generation Future Outlook 37 of Energy Talent 72 Climate Change Reflections B 37 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Transforming energy Our Reporting Suite and Approach Thoughts Governance from Repositioning Eskom in Environmental Management Responding to Climate Change Leveraging governance Enabling a Resilient Low-Carbon Energy Future Performance Our Social Footprint Financial Research and Innovation Supplementary Supplementary Information ABC to create value our leadership a transforming industry for transformation overview overview information Welcome to Eskom’s FY2026 reporting suite REPORTING PERIOD FIVE REPORTS, ONE STORY 1 April 2025 to 31 March 2026 AVAILABLE AT We present a cohesive view of our performance, prospects and stewardship www.eskom.co.za/investors/integrated-results ONE STORY THROUGH FIVE DIFFERENT LENSES Each report focuses on a distinct dimension of our performance. Together, these five reports give a balanced, credible account of Eskom’s performance across strategic, financial, operational, governance and sustainability dimensions INTEGRATED ANNUAL FINANCIAL SUSTAINABILITY GOVERNANCE AND PERFORMANCE REPORT STATEMENTS REPORT REMUNERATION REPORT [NEW] REPORT [NEW] Our strategy and value creation story Our audited financial position, performance Our environmental, social and governance How we are governed and how we reward A detailed view of operational and and outlook and cash flows (ESG) impacts our people financial performance WHO IT’S FOR: The people of South WHO IT’S FOR: Shareholder, investors, WHO IT’S FOR: Stakeholders with a WHO IT’S FOR: Shareholder, providers of WHO IT’S FOR: Shareholder, analysts, Africa, providers of financial capital and our creditors, regulators, analysts, employees specific interest in our ESG performance financial capital, regulators and employees regulators and operationally focused broader stakeholder base and the public stakeholders GUIDED BY: Global Reporting Initiative, GUIDED BY: Companies Act, King IV and GUIDED BY: Integrated Reporting GUIDED BY: IFRS Accounting Standards, United Nations Sustainable Development PFMA, with pay-gap disclosures aligned GUIDED BY: PFMA and National Treasury Framework, Companies Act, PFMA, King IV; the Companies Act and PFMA Goals (SDGs), IFRS S2 and Eskom’s internal to the Companies Amendment Act’s regulations, the shareholder compact and with ISSB standards IFRS S1 and S2 under ESG framework requirements internal KPI measurement specifications assessment MATERIALITY LENS: Financial materiality: information that could influence MATERIALITY LENS: Impact materiality: MATERIALITY LENS: Matters material to MATERIALITY LENS: Operational and MATERIALITY LENS: Double materiality: users’ decisions our most significant effects on the economy, leadership effectiveness, ethical conduct, fair financial materiality - matters significant to financial and impact environment and people remuneration and long-term value creation delivering on our mandate ASSURANCE: Audited by Deloitte & ASSURANCE: Internal Audit verified the Touche on behalf of the Auditor-General of ASSURANCE: Internal Audit verified the ASSURANCE: Internal Audit verified the ASSURANCE: Internal Audit verified the disclosures; Deloitte & Touche provided South Africa disclosures; Deloitte & Touche provided disclosures; Deloitte & Touche reviewed disclosures; Deloitte & Touche provided reasonable assurance on selected KPIs and reasonable assurance on selected KPIs and consistency across the reporting suite reasonable assurance on selected KPIs and reviewed consistency across the reporting reviewed consistency across the reporting reviewed consistency across the reporting suite suite suite IF YOU ONLY READ ONE THING ... STRATEGY, VALUE CREATION AND GOVERNANCE, ETHICS AND SUSTAINABILITY AND ESG ASSURANCE AND REPORTING OUTLOOK LEADERSHIP Sustainability report QUALITY Start with our integrated report Integrated report Governance and remuneration report Environmental performance, including Integrated report In one place, it sets out our strategy, the Our strategy, business model and material Board composition, committees and emissions and water Board responsibility and signoff matters most material to Eskom, how we have matters effectiveness Social impact, community investment and Independent assurance report on selected KPIs performed against them and where we are Our operating context, risks and opportunities Ethics, compliance and combined assurance just energy transition Annual financial statements heading. It points you to the rest of the suite The C-suite’s perspectives King IV application and governance outcomes Condensed annual financial statements and Climate-related disclosures aligned with Independent auditor’s report when you want to go deeper commentary REMUNERATION AND BENEFITS IFRS S2 Contribution to the UN Sustainable OPERATIONAL AND FINANCIAL WHERE TO FIND WHAT Annual financial statements Governance and remuneration report Development Goals PERFORMANCE A quick guide to Eskom’s FY2026 reporting Our financial position, performance and cash Remuneration philosophy and policy Performance report suite, organised by the topics that matter most flows Executive and non-executive director Integrated report Performance overview to our stakeholders. remuneration A Companies Pay-gap disclosure under the Carbon footprint Financial ESKOM SOC LTD Sustainability report 2026 overview HOLDINGS Statistical information Amendment Act Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC 1 Statement by the Chairman of the Social, Ethics and Sustainability Committee Statement by the Group Chief Executive The Year in Review Our ESG Approach ESG Reflections 1 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Statement by the Chairman of the SES Committee We are deeply concerned by the loss of seven related risks and opportunities affect Eskom’s financial Affordability remains a defining sustainability employees and contractors during FY2026. While performance, cash flows and access to funding and consideration. Electricity is an essential service and a Eskom made significant progress in operational how Eskom’s operations impact people, the economy foundation for economic growth, while Eskom must recovery and security of supply, no achievement can and the environment. This double materiality recover the efficient cost of supply and fund critical outweigh the loss of life. On behalf of the Board SES perspective remains central to our reporting and national infrastructure. Municipal arrear debt, non- Committee, I extend our deepest condolences to the decision-making. technical losses, illegal connections and a growing families, friends, colleagues and loved ones of those culture of non-payment continue to place pressure who tragically lost their lives while serving Eskom. Capital allocation remains one of Eskom’s most on Eskom’s financial sustainability and the future important sustainability levers. The infrastructure viability of distribution arrangements. Addressing Every fatality is a profound human tragedy that affects investment required over the coming years these matters requires continued collaboration on not only the immediate families left behind, but also must strengthen generation reliability, expand tariffs, debt recovery, distribution reform, Free Basic our Eskom community as a whole. This remains a and modernise the transmission grid, improve Electricity, smart metering, energy efficiency and sobering reminder of our collective responsibility to distribution performance, support environmental a more cost-reflective and transparent electricity ensure that every employee and contractor returns compliance, reduce losses and build the capabilities industry. home safely each day. required for a lower-carbon electricity system. The National Transmission Company South Africa Stakeholder confidence depends on credible The Committee is deeply saddened by these losses and the broader Transmission Development Plan information and demonstrable accountability, and honours the memory of those who have passed. are critical to unlocking new generation capacity, therefore strengthening governance, assurance We remain unwavering in our commitment to Eskom’s integrating renewable energy and improving grid and internal controls remain a priority. Progress in Zero Harm philosophy and will continue to exercise resilience. addressing audit findings and improving procurement Eskom’s sustainability performance must be assessed rigorous oversight of health and safety performance, controls, data integrity, revenue assurance, PFMA in the context of our public mandate – to provide leadership accountability, operational discipline and At the same time, Eskom is responsibly embracing compliance, consequence management and electricity in an efficient and sustainable manner, contractor management to prevent future tragedies. digital technologies, advanced analytics and artificial transparent reporting must be sustained. Reliable support South Africa’s socio-economic development intelligence. This will enhance grid reliability, improve financial and sustainability information is essential for and transform energy to create long-term value. We continue to oversee the integration of asset performance, strengthen predictive maintenance the Board, shareholder, lenders, regulators and the For Eskom, sustainability and financial resilience are Environmental, Social and Governance matters capabilities and support more informed, real-time public to assess Eskom’s performance, resilience and inseparable. Our ability to maintain security of supply, into Eskom’s strategy, enterprise risk management, operational decision-making across the electricity long-term value creation. protect public resources, reduce our environmental performance monitoring and reporting. In addition, value chain. footprint and support a Just Energy Transition we ensure that all submissions to the Board and Looking ahead, Eskom’s sustainability journey will be depends on disciplined financial management, sub‑committees consider ESG implications. Eskom’s transition must be orderly, technically sound, measured by our ability to continue with operational responsible capital allocation, sound governance and financially responsible and socially just. A lower- recovery, strengthen financial performance, execute operational excellence. In this financial year we approved Eskom’s ESG carbon electricity system requires careful sequencing, the required capital programme, improve controls framework to enable the business to identify, track, appropriate funding and sustained collaboration with and mobilise funding for a secure, affordable, lower- The Board Social, Ethics and Sustainability Committee monitor and report on its ESG risks and opportunities government, the shareholder, NERSA, municipalities, carbon and inclusive energy future. has a broad and significant mandate, to oversee in a structured manner. Following this approval, Eskom development finance institutions, lenders, investors, Eskom’s impact on society and the environment and Treasury is developing an ESG funding framework to customers, employees and communities. Climate The journey towards a sustainable Eskom and a to monitor our standing as a good corporate citizen. raise capital for sustainability projects. change, environmental compliance, air quality, water sustainable South Africa remains challenging, but our Our oversight includes ethics, sustainability, climate security, rehabilitation obligations and climate-resilient commitment to that future is unwavering. change, environmental stewardship, health and safety, The 2026 Sustainability Report follows a period in infrastructure are not only environmental matters; socio-economic development, stakeholder relations which Eskom made measurable progress in stabilising they are strategic risks that must inform planning, and the Just Energy Transition. the business. The Board SES committee is critical in budgeting, investment appraisal, funding decisions and ensuring that this progress is sustained, embedded performance management. People remain central to the delivery of this mandate. and supported by credible disclosures, robust Their safety, wellbeing and conduct, guided by Eskom’s controls and clear accountability. Investors, lenders, values, are fundamental to responsible leadership regulators, employees, communities and the public and sustainable performance. In driving a high- must be able to understand both how sustainability- Tshokolo Nchocho performance and ethical culture through the Eskom Chairman: Social, Ethics and Sustainability Committee values of Zero Harm, Integrity, Innovation, Sinobuntu, Customer Satisfaction and Excellence (ZIISCE) we will maintain public confidence. 2 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Statement by the Group Chief Executive substantial reduction in load shedding and improved Company South Africa, these efforts will help unlock to improving reliability, enhancing customer service, security of supply. This progress has strengthened new generation capacity, integrate renewable energy reducing losses and supporting the energy transition. economic confidence, supported investment and and strengthen grid resilience. Achieving this vision Our focus is not simply on adopting technology, but improved the daily lives of millions of South Africans. will require continued collaboration with government, on using innovation to solve real challenges and create However, our responsibility now is to sustain these development finance institutions, investors, meaningful value for our stakeholders. gains and embed reliability as a permanent feature of communities and other stakeholders. our operating model. Looking ahead, our success will be measured by our Environmental stewardship remains fundamental ability to sustain operational recovery, strengthen Operational improvement has also contributed to to our licence to operate. While we acknowledge financial performance, modernise infrastructure, stronger financial performance. Reduced reliance the environmental impacts associated with our improve environmental outcomes and deliver a Just on expensive emergency generation, improved operations, we remain committed to improving Energy Transition that leaves no one behind. We will efficiencies and greater operational stability have performance through enhanced emissions continue to communicate openly about our progress, demonstrated the strong link between operational management, water stewardship, biodiversity our challenges and the difficult decisions required to excellence and financial sustainability. Nevertheless, protection, environmental compliance and secure South Africa’s energy future. significant challenges remain, including municipal debt, transparent climate-related disclosures. Our long- electricity theft, affordability pressures, infrastructure term ambition remains aligned with South Africa’s I am encouraged by the progress we have achieved, investment requirements and environmental climate commitments and the country’s aspiration of but equally mindful of the responsibility that lies compliance obligations. Long-term success will depend achieving net-zero emissions by 2050. ahead. The trust of our employees, customers, not only on maintaining performance improvements investors, lenders, regulators, communities and the but also on strengthening governance, controls and Good governance and ethical leadership are essential people of South Africa must be earned every day. I am pleased to present Eskom’s 2026 Sustainability accountability across the organisation. to restoring and maintaining stakeholder trust. We If we continue to act with discipline, integrity and a Report at a time when the organisation is transitioning continue to strengthen internal controls, improve shared sense of purpose, Eskom can help power a from recovery to resilience. The past few years have During the year, we further embedded ESG principles assurance processes and implement the Audit more resilient, inclusive and sustainable future for tested Eskom, our stakeholders and the country, into the way we manage and lead the business. Recovery Programme to address historical limitations generations to come. reinforcing the critical role we play in powering The implementation of the Board-approved ESG and improve accountability. We have also intensified economic growth, enabling livelihoods and supporting framework, ESG-linked executive remuneration efforts to combat fraud, corruption, theft and criminal If it is to be, it is up to us! South Africa’s development. While we have made and strengthened governance processes reinforces activity, recognising that these undermine service meaningful progress in stabilising the business, we accountability and supports our commitment delivery, increase costs and erode public confidence. remain focused on building an Eskom that is reliable, to sustainable value creation, transparency and financially sustainable, environmentally responsible responsible leadership. Our contribution to South Africa extends beyond and ready to meet the needs of a rapidly changing electricity supply. Through electrification, enterprise energy landscape. At the same time, we continue to advance South and supplier development, skills enhancement, Africa’s Just Energy Transition. For Eskom, the community investment and local economic initiatives, Safety remains our foremost priority. While our transition is not simply about decarbonisation; it we continue to play a significant role in supporting lost-time injury rate improved, the loss of lives is about balancing energy security, affordability equitable and sustainable growth. Equally important Dan Marokane among employees and contractors is a stark reminder and sustainability while protecting communities, is our investment in our people. Being recognised as a Group Chief Executive that no operational or financial achievement can supporting workers and enabling economic Top Employer for a second consecutive year reflects compare to the value and importance of human life. development. Our experience to date has confirmed our commitment to building a capable, engaged and We extend our deepest condolences to the families, that successful transition requires meaningful future-ready workforce. friends and colleagues affected. Zero Harm remains stakeholder engagement, skills development, local a non‑negotiable commitment and must be reflected economic participation and long-term planning. These Innovation will be a defining feature of Eskom’s future in every decision, every task and every level of the principles will continue to guide our approach as we success. Digital technologies, artificial intelligence, organisation. expand transition initiatives across the business. predictive analytics, smart metering, energy storage and modern grid solutions are increasingly critical The 2026 financial year marked a significant step The establishment of Eskom Green and the ongoing forward in Eskom’s operational recovery. Improved expansion of the transmission network represent plant performance, disciplined maintenance execution important milestones in positioning Eskom for the and the return of key generating units enabled a future. Together with the National Transmission 3 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC The Year In Review We are committed to environmental stewardship People and communities are at the heart of our Strong governance underpins our commitment to and responsible resource management purpose and progress integrity, transparency and accountability Achievements Challenges Achievements Challenges Achievements Challenges Environmental performance Emissions performance Electrification Employee and contractor fatalities Governance was strengthened Governance remains challenged by improved through reduced water through Board-approved ESG municipal debt consumption Particulate matter exceedances Skills development, bursaries Rising mental health concerns integration PFMA compliance weaknesses Strengthened stewardship and Environmental legal contraventions Top Employer recognition Workforce stress and burnout ESG-linked executive remuneration governance Audit qualifications Unauthorised water releases Improved safety performance Unemployment and inequality in Enhanced ethics governance Completion of the PCB phase-out communities Fraud, corruption, infrastructure Ambient ozone and particulate Mental health support Stronger risk oversight theft and cyber threats programme pollution Evolving skills requirements Just Energy Transition programmes Improved stakeholder engagement Data quality limitations Fewer red-list avian mortalities Ageing coal-fired assets Affordability pressures Community investment Legal separation progress Need for outcome-based Expansion of air-quality offset Ash beneficiation decline Municipal debt impacts initiatives Supplier development performance metrics Expanded assurance aligned with Regulatory compliance pressures Electricity theft King IV™, GRI and IFRS Enhanced climate governance Localisation, enterprise support Climate-related risks Ensuring a Just, inclusive energy sustainability standards Launch of Eskom Green to support Expanded stakeholder engagement transition decarbonisation 4 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our ESG Approach Environmental, Social and Governance (ESG) is positioned as a strategic enabler supporting Eskom’s mandate to deliver reliable, affordable electricity while contributing to South Africa’s Just Energy Transition and long‑term sustainable value creation. We apply a double materiality approach, considering both ESG risks and opportunities that may affect enterprise value and Eskom’s impacts on society and the environment. In FY2026, we strengthened the integration of ESG considerations into our strategy, governance, performance management and reporting. ESG oversight is exercised at Board level through the Social, Ethics and Sustainability (SES) Committee, supported by executive management and integrated enterprise risk management processes. ESG matters are embedded within strategy formulation, risk assessments, assurance planning and performance monitoring, reinforcing accountability and consistency across the organisation. The figure below illustrates key material matters identified in our ESG framework. Environmental E Social S Governance G Transitional and physical Social capital: Governance structures: climate risks: • Energy security, affordability/access • Leadership, governance, compliance • Climate change mitigation and and sustainability and ethics adaptation • Community trust and support • Unbundling and legal separation Natural capital: • Load shedding and load reduction of Eskom • Water use, reduction, security of • Just energy transition and technology Risk management, culture and supply and pollution changes oversight: • Biodiversity – land use and impact • Electricity theft, low and non- • Ethics on wildlife payment by customers • Culture Waste management and air quality: • Supplier Development, Localisation • Enterprise risk management and Industrialisation (SDL&I) • Air pollution, health and air quality • Resilience • Corporate social investment management • Cyber-security • Waste reduction and beneficiation Occupational health and safety and Fraud, corruption and criminality: wellbeing: Circular economy: • Fraud, corruption and criminality • Air quality, public safety, contractors • Reduce, reuse, recycle and and employee’s wellbeing Transparency and reporting: regenerate Human capital: • Integrated and sustainability reporting • Diversity and inclusivity • High performance and ethical culture • Skills development and retention leaving no one The framework consolidates our approach, priorities and governance arrangements and aligns sustainability considerations with the business strategy, behind the National Development Plan (NDP) and the Sustainable Development Goals (SDGs). ESG focus areas and KPIs are embedded in the Eskom Corporate Plan and divisional business plans, ensuring alignment between strategy, execution and reporting. Material ESG KPIs aligned to the shareholder compact, Corporate Plan objectives and Board priorities form part of executive variable remuneration across major divisions. This strengthens leadership accountability and reinforces ESG delivery as a core management responsibility. We enhanced our ESG maturity through benchmarking against international peers and leading practices, supported by Genesis Analytics and funded by the French Development Agency (AFD). The benchmarking exercise provided a structured roadmap to strengthen governance, disclosures and performance alignment with global expectations. 5 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our ESG Approach continued We have shifted our efforts to strengthen We communicate our ESG approach and environmental management, progressing from performance through an integrated reporting suite a compliance‑driven culture towards proactive and ESG Factsheet, designed to meet the needs environmental stewardship, while recognising ongoing of investors, lenders, government and broader challenges related to ageing plant and operational stakeholders. Reporting is guided by the Integrated reliability. Environmental focus areas include Reporting Framework, GRI Standards and increasing air‑emissions management, water stewardship, ash alignment with IFRS Sustainability Disclosure beneficiation aligned to circular‑economy principles Standards (IFRS S1 and IFRS S2) and relevant SASB and regulatory compliance. metrics. Internal Audit and independent external assurance provides assurance over selected ESG KPIs, We remain aligned with South Africa’s commitment enhancing the credibility and reliability of disclosures. to net-zero emissions by 2050, and advancing the Just Energy Transition (JET). This includes the expansion While challenges remain, particularly in financial of renewable energy, repowering and repurposing of climate quantification and long-term transition legacy coal assets, grid investment and resilience and metrics, we are well positioned on a clear adaptation initiatives. Eskom’s climate governance and improvement trajectory, aligned with national strategic intent are well established; continued work priorities, stakeholder expectations and leading global is underway to strengthen climate scenario analysis, ESG practices. Our ESG progress reflects Eskom’s transition metrics and quantified financial impacts in commitment to responsible leadership, sustainable line with evolving international disclosure standards. value creation and a just transition that supports South Africa’s development and future energy needs. Safety remains a core social priority, with a sustained focus on Zero Harm and rigorous monitoring of lost‑time injury rates across operations. Safety performance is embedded in executive and operational KPIs. Workforce capability, transformation ESG REFLECTIONS and skills development, including initiatives • Board-approved ESG Framework embedded aligned to future energy technologies and the Just ESG into Eskom’s strategy, governance and Energy Transition remain key investment areas. performance management. Socio‑economic transformation is supported through procurement initiatives, local content, supplier • ESG-linked executive remuneration development, corporate social investment and implemented, strengthening leadership ongoing engagement with communities impacted by accountability for environmental, social and Eskom’s operations. governance outcomes. • Continued to drive the JET in support Governance remained a key enabler of our of the country’s net-zero ambition while sustainability agenda, strengthening accountability, supporting energy security, affordability and transparency and ethical leadership while embedding social inclusion. ESG considerations into strategy, risk management and • Stronger governance and integrity focus, performance oversight. Through robust Board and SES with continued action against fraud, Committee oversight, Eskom enhanced stakeholder corruption and criminality. confidence, supported credible sustainability reporting • Strengthened ESG disclosures and and advanced long-term sustainable value creation. assurance, including enhanced Board oversight, expanded ESG reporting, selected KPI assurance and clearer climate, risk and performance disclosures, while progressing alignment with IFRS S1, IFRS S2 and relevant SASB metrics. 6 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance E S G KEY GOVERNANCE ASPECTS RISKS • Key governance risks: Financial sustainability, • Mitigation actions: Accelerate audit recovery, control effectiveness and institutional resilience strengthen procurement and consequence remain challenged by escalating municipal debt, management, enhance digital monitoring irregular expenditure, PFMA non-compliance, and cyber resilience, improve climate-risk audit qualifications, fraud, corruption, electricity quantification, expand ethics assurance and theft, cyber threats, environmental compliance training, intensify municipal debt recovery issues and weak data integrity. and embed accountability for compliance, • Emerging concerns: Limited climate-risk data quality and risk management across the quantification constrains decision-useful organisation. Eskom Board Social Ethics and Sustainability (SES) Committee disclosures, while workforce mental health 2 has become a Priority I risk affecting safety, Legal Separation productivity and long-term sustainability. Transitioning to Cleaner Energy Ethics Crime, Fraud and Corruption VALUE-CREATION/OPPORTUNITIES Cable, Infrastructure, Asset Theft and Vandalism • Governance strengths: Stronger oversight, • Trust and credibility: Enhanced ethics accountability and integrated decision-making governance, anti-corruption measures, Coal Theft and Fraud have embedded sustainability into strategy transparent sustainability reporting and Public Finance Management Act (PFMA) Compliance through the ESG Framework, Board SES alignment with IFRS Sustainability Disclosure Stakeholder Management Committee oversight and ESG-linked executive Standards and GRI support investor, lender and Integrated Risk Management remuneration. regulator confidence. Enterprise Resilience • Value creation enablers: A mature ISO • Future focus: Strengthen outcome-based Quality Management 31000-aligned risk management system, reporting, improve quantified ESG and climate Governance Reflections extensive stakeholder engagement, robust metrics, mature sustainability assurance combined assurance, legal separation and capabilities and reinforce the link between market reforms have strengthened resilience, governance performance, financial resilience and transparency and long-term sustainability. national development outcomes. World-class governance remains essential to balancing the social, environmental and economic dimensions of our business. Strong governance is fundamental to Eskom’s recovery, sustainability and public mandate. Our transformation has delivered tangible benefits, including improved utility and sovereign credit ratings. These gains must be sustained and strengthened. Guided by a focused Board and Executive team and supported by a committed workforce, we are more aware than ever, particularly after the challenges of load shedding, of our critical role in South Africa and the broader region. 7 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued Decent Work and Economic Growth Eskom: powering the SDGs The FY2026 shareholder quarterly reports reflect that our sustainability governance is visibly senior-led and a number of key matters were addressed using various interventions in the year. This included: framing the long-term strategy, pivoting the business towards sustainability and competitiveness with board and management support; the SES Board Committee considering sustainability reporting, audit, MES, water and SHEQ matters; Board-Exco strategy workshops and Exco approval of a 2030 carbon trajectory aligned with IRP2025. Tshokolo Nchocho Clive Le Roux Dr Busisiwe Vilakazi The Board deliberations foster sustainable national economic growth Dr Kgaugelo Chiloane Prof. Vuyo Peach Sharmila Govind As a State-owned Entity, we continue to fulfil a climate change, health and safety, socio-economic unique dual mandate. We recognise the central role development, stakeholder relations and sustainability of energy in supporting responsible and accountable reporting. The Committee provides assurance that governance, inclusive economic development material environmental, social and governance risks and environmental resilience. Our approach is and opportunities are appropriately governed, underpinned by an ESG framework aligned with supports ethical and responsible corporate citizenship the King Code, the principles of the United Nations and guides Eskom’s sustainable value creation and Global Compact (UNGC) and relevant sustainability Just Energy Transition objectives. This role aligns and technical standards. closely with the ESG governance framework that we have been embedding across Eskom’s sustainability While we remain committed to strengthening reporting. organisational stability and addressing the legacy of past misconduct, our focus is firmly on the risks The Board SES committee reflects diversity across and opportunities ahead. The increasing impact of gender, professional background and experience. climate-related extreme weather events on our It is well positioned to oversee Eskom’s sustainability people and infrastructure demands decisive action. agenda because it combines expertise in: We acknowledge our responsibility to contribute to • Sustainability and climate change solutions rather than exacerbate the challenge and • Infrastructure investment and Just Energy therefore reaffirm our commitment to a carefully Transition financing managed transition towards a cleaner, more inclusive energy future. • Human capital and social performance • Legal compliance and ethics ESKOM BOARD SOCIAL ETHICS AND • Governance and stakeholder management SUSTAINABILITY (SES) COMMITTEE The Eskom Board Social, Ethics and Sustainability This level of competencies supports the Board’s (SES) Committee assists the Board in fulfilling oversight of Eskom’s ESG agenda, disclosures, its statutory and governance responsibilities by climate commitments, unbundling impacts, municipal overseeing ESG performance, ethics, sustainability, stakeholder relationships and broader socio-economic responsibilities. 8 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued LEGAL SEPARATION Eskom’s unbundling is the separation of the utility PURPOSE OF THE SEPARATION into distinct businesses: Generation, the National Move from integrated operations to legally separated, market-ready entities with clear governance, asset allocation, licensing, approvals and system readiness. Transmission Company South Africa (NTCSA) and Distribution, supported by a newly created NewCo Transmission (2025–2027) Distribution (2025–2028) Generation (2025–2029) that houses group‑wide corporate and enabling • NTCSA execution evolves toward a fully • NEDCSA establishment supported by • Generation moves into a legally ring-fenced functions. This is aimed at improving governance, independent TSO. WiresCo, RetailCo and TraderCo. GxCo for a liberalised electricity market. transparency, operational efficiency, competition and • Asset allocation and implementation due • Dx asset allocation and business-line • Operating model refinement, asset and financial sustainability. We are implementing this legal diligence completed. delineation completed. debt allocation and due diligence during separation through the Integrated Unbundling Plan 2025–2026. • Presidential Task Team and World Bank • Liquidity, solvency and financial sustainability (IUP), with execution currently progressing through engagement to confirm optimal TSO end- interventions support readiness during • Eskom Green scales as the renewable Phase II of the unbundling programme. state and transaction structure in 2026. 2025–2027. generation platform from 2026 onward. This reform is a cornerstone of South Africa’s • TSO-enabling legislation and regulator • PFMA approvals, lender consents and • Legal separation transactions, commercial electricity market reform agenda and is designed to licensing targeted for 2026–2027. contractual separation during 2027–2028. agreements and balance-sheet restructuring enable a transparent, competitive and market‑driven • Full legal and operational TSO establishment, • Legal separation into NEDCSA and during 2027–2029. energy sector while preserving system stability and including debt reallocation, PFMA approvals subsidiaries, aligned to regulatory and • Full legal separation to enable competitive financial sustainability. The Board plays a critical and system readiness. market-readiness requirements. procurement and market trading governance role in overseeing this transformation arrangements. while managing significant associated risks. End-state End-state End-state This unbundled structure separates natural monopoly Independent TSO NEDCSA + subsidiaries Ring-fenced GxCo network functions from competitive market activities, strengthens governance and regulatory oversight and enables open access to the electricity market. Common readiness gates: asset and debt allocation, regulatory licensing, PFMA approvals, lender consents, commercial agreements, operational system readiness 9 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued All separation activities are sequenced toward transition towards a more open, reliable and rules- initiatives, skills development programmes, renewable that the transition is not a choice between coal and completion of the full unbundling transaction by based power system. For us, this milestone is closely energy and storage projects and the formal launch of renewables, but a managed shift towards a lower- 2030, including system go‑live, final debt reallocation aligned with the broader unbundling programme Eskom Green. carbon, technology-agnostic future that maintains and implementation of market‑supporting IT and and provides a platform to manage the transition security of supply and advances South Africa’s net- operational platforms. Throughout Phase II, parallel responsibly, while safeguarding system stability, JUST ENERGY TRANSITION AND zero by 2050 ambition. workstreams are addressing legislative advocacy, stakeholder confidence and long-term sustainability. TRANSITION READINESS lender engagement, IT and operational readiness, We continued to implement practical mechanisms Progress across the JET pillars remained focused labour engagement and change management to TRANSITIONING TO CLEANER ENERGY that support decarbonisation, energy security and on balancing the energy trilemma with social and ensure stability during transition. Our transition to cleaner energy remains central to just outcomes aligned with our strategic priorities. economic realities in coal-dependent regions. Under our long-term sustainability and to South Africa’s These included repowering and repurposing initiatives the Just pillar, we prioritised skills development, The legal separation of generation, transmission and broader energy transition. During the year, we at existing power station sites, transition-enabling local economic diversification and community distribution will create clear functional boundaries, focused on moving from planning to practical capabilities such as Eskom Green and project participation. Under the Energy pillar, we advanced support non‑discriminatory market access and enable implementation by advancing repowering and workstreams that support cleaner technologies, skills cleaner generation, storage and grid-aligned projects competition and private‑sector participation, while repurposing initiatives, strengthening transition development and local economic participation. that support system resilience. Under the Transition preserving Eskom’s ability to operate sustainably readiness at selected power station sites and pillar, we applied lessons from early repowering and within a reformed, market‑driven electricity sector. embedding just transition principles into our approach A key focus was the decoupling of JET activities repurposing work to strengthen planning, improve to workers, communities and local economic from power station shutdown schedules. This stakeholder engagement and create practical The approval of NTCSA’s Market Operator Licence development. allows repowering, repurposing, socio-economic pathways for asset and community transition. represents a significant milestone in South Africa’s development and skills initiatives to progress Eskom Green complements this work as a transition electricity sector reform journey. It strengthens the We continued to develop the institutional and independently of operational timelines, while enabler, providing a dedicated platform to accelerate legal and institutional basis for a competitive electricity project platforms required to support a lower-carbon supporting communities before end-of-life renewable energy development, partnerships and market, supports transparent market rules and grid electricity future, including site-based socio-economic decisions are reached. This approach recognises investment. access and enhances investor confidence in the ESKOM’S 5 Es OF A JUST TRANSITION ENERGY ECONOMY EMPLOYMENT EQUITY ENVIRONMENT Ensure equitable access to Contribute to economic Create new high-quality jobs Catalyse re-skilling of staff and Reduce GHG emissions, clean, sustainable energy by growth and development through repowering and communities to ensure an improve air quality unlocking new energy through the repurposing initiatives equitable transition through and reduce water sources and strengthening reindustrialisation, with focus on Mpumalanga training centres and consumption, contributing to the national grid climate smart agriculture, repurposing projects tailored South Africa’s sustainability eco-tourism and innovation to each community goals 10 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued ESKOM GREEN – ENABLING THE NEXT PHASE OF SOUTH AFRICA’S ENERGY TRANSITION INTEGRATION WITH THE JUST ENERGY • Enabling the integration of clean energy while Eskom Green represents a strategic evolution in Eskom’s journey to deliver a sustainable, reliable and affordable TRANSITION maintaining affordability and reliability electricity system for South Africa. As the energy landscape continues to transform in response to climate Eskom’s JET strategy seeks to balance energy • Positioning Eskom to respond effectively to evolving imperatives, policy reform and changing market dynamics, Eskom has established Eskom Green as a dedicated, security, economic growth, employment, equity and regulatory, market and technology developments ring‑fenced renewable energy platform within the Group. This structure is designed to ensure that we can environmental sustainability. While the JET framework participate effectively in the development of renewable energy capacity while maintaining focus on system focuses on ensuring that the transition is inclusive and This work is underpinned by Eskom’s alignment with stability, operational recovery and financial sustainability. socially just, Eskom Green is the enabler providing South Africa’s commitment to achieving net-zero the commercial and operational platform required to emissions by 2050, while ensuring that the transition Eskom Green complements our existing operations by supporting the energy trilemma and enabling a balanced, implement that transition at scale, this includes: remains aligned with South Africa’s socio-economic just and sustainable transition through three interrelated objectives central to South Africa’s energy transition. realities. • Supporting repowering and repurposing initiatives at Enabling Scaled, • Advances renewable energy and storage capacity in line with the Integrated existing power station sites POSITIONING ESKOM FOR LONG-TERM System‑Aligned Resource Plan (IRP) 2025. • Enabling new clean energy developments in regions RESILIENCE Renewable • Supports the development of solar PV, wind and battery energy storage systems. historically reliant on coal As the electricity sector evolves, our ability to remain Capacity • Promotes technologies that improve system flexibility, reliability and resilience. • Unlocking opportunities for localisation, skills relevant depends on the capacity to: development and job creation • Participate in new energy markets • Ensures new capacity is aligned with grid requirements, system needs and long- term sustainability outcomes. In this way, the platform strengthens the link between • Partner effectively with private sector participants energy transition and economic transformation, • Deliver infrastructure at scale Crowding in • Crowds in private capital and capability to support renewable energy ensuring that sustainability outcomes extend beyond emissions reduction. • Maintain system stability while transitioning the Investment and development. Enabling generation fleet • Provides a fit-for-purpose platform for partnerships with Independent Power Partnerships Producers, development finance institutions and investors. ADVANCING ESKOM’S SUSTAINABILITY AND Eskom Green provides the platform through which DECARBONISATION OBJECTIVES • Enables structured investment models, including joint ventures and special-purpose these objectives can be achieved and represents the Eskom Green contributes directly to Eskom’s vehicles. next phase in our sustainability journey, building on sustainability objectives by: • Supports large-scale investment by providing credibility, system alignment and operational recovery, strengthening system capability coordination. • Reducing emissions intensity through the and enabling a practical and inclusive transition to a progressive expansion of renewable energy capacity low‑carbon future. • Contributes to a competitive and diversified electricity sector aligned with national priorities and system requirements. • Supporting a diversified and lower‑carbon generation mix aligned with national climate Supporting System • Supports system stability as South Africa’s energy mix becomes more diverse and commitments Stability and renewable-based. Integration • Integrates storage and flexible capacity to manage variability and strengthen grid resilience. • Includes battery energy storage, hybrid projects and the continued use of existing flexible assets. • Maintains the operational integrity of the electricity system while enabling renewable energy integration. • Builds on improved system performance and stronger baseload capacity to support a more flexible and resilient power system. 11 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued ETHICS Preventing, detecting and responding to fraud and Our approach to crime, fraud and corruption is centred We remain dedicated to applying Eskom’s code of ethics (The Way) throughout our business. It is mandatory corrupt activities remains a core component of our on prevention, transparency, accountability and decisive for every guardian to submit an annual declaration of interest including business courtesies and any potential governance framework and forms an integral part of the action. Strengthening governance and ethical conduct conflicts. We have made good progress on our ethics strategy and action plan. As part of our private work policy, organisation’s ESG responsibilities. Eskom recognises is essential to restoring stakeholder confidence, we continue to track, monitor and maintain records of private work applications received. Where employees that effective fraud prevention depends on a strong safeguarding public resources and supporting our have approval (as per prescribed criteria) to engage in defined types of private work, abuse of Eskom’s time and ethical organisational culture, supported by leadership long-term sustainability and mandate to deliver reliable resources is strictly managed. accountability, employee awareness and consistent electricity to South Africa. consequence management. • Declaration of Interest (DOI) compliance remained strong at 99% reflecting sustained adherence to CABLE, INFRASTRUCTURE, ASSET THEFT declaration requirements The introduction of the Raptor Fusion Centre has AND VANDALISM • Business courtesies disclosures increased from 387 (FY2025) to 651, indicating improved transparency and a further strengthened our integrated approach to Theft of overhead aluminium conductors, copper cables stronger disclosure culture combating infrastructure crime, fraud, and corruption and pylon components pose a significant operational • Private work applications rose significantly from 2 869 to 3 680, representing a 28% increase over three years by enhancing intelligence, investigative, and response challenge. In response, Eskom has implemented and suggesting greater employee disclosure and governance visibility capabilities and fostering closer collaboration with the advanced intrusion detection systems at substations, • Ethics training completions improved substantially, increasing from 17 001 to 39 588, demonstrating stronger Ethics Office, Internal Audit, and law enforcement replaced stolen copper components with lower-value ethics awareness coverage across the organisation partners, the Special Investigating Unit (SIU). alternatives and intensified intelligence-led disruption initiatives. Despite these measures, theft of conductors, • Overall, the trends indicate a strengthening ethics culture, supported by improved disclosure, awareness, Allegations of fraud and corruption are investigated cabling and other network-related equipment resulted governance controls and transparency by a dedicated forensic team supported by a panel of in losses of R85 million arising from 1 334 incidents service providers. The function operates independently during the year (FY2025: R77 million from 1 585 Overall ethics performance remains stable with strong compliance trends. However, the following key issues of business operations. Investigations are conducted in require continued management focus: incidents). Eskom continues to collaborate closely with accordance with Eskom policies, labour regulations and other state-owned entities, industry stakeholders, • Private work approvals backlog driven by annual renewals and inconsistent application across divisions. legal requirements. the South African Police Service and the National • Mandatory ethics training gap, with approximately 19% of the workforce outstanding, creating an awareness Prosecuting Authority to strengthen enforcement risk. Confirmed cases result in appropriate consequence efforts and support the successful prosecution of management, which may include disciplinary action, • Declarations of Interest (DOI) assurance limitations, particularly relating to contractors and reliance on offenders. including dismissal, civil recovery of losses, criminal external data sources (e.g. Companies and Intellectual Property Commission). referrals to law enforcement agencies or termination of • Ethics governance maturity achieved, but outcome‑based ethics metrics remain underdeveloped. supplier relationships. Targeted mitigation actions and continued training and awareness are in progress across all areas of the business. To support improved accountability for the management of fraud and corruption risk across the CRIME, FRAUD AND CORRUPTION organisation, management implemented targeted interventions to strengthen the prevention, detection and response to these crimes, address identified Peace, Justice and Strong Institutions Eskom: powering the SDGs root causes, close control weaknesses and enhance consistent risk management and oversight across the organisation. The strengthening of governance internal controls and transparent reporting, was evidenced by the initiation of the Audit Recovery Programme that closed out 91% of audit findings by September 2025. We have The Anti-Fraud and Corruption Communication strengthened consequence management for internal misconduct (any employee found violating policies faces Campaign was launched to raise awareness, educate disciplinary action), thus ensuring that the company fosters a culture of accountability and the rule of law. employees and foster a culture of integrity at Eskom. The priority‑one risk of fraud and corruption was previously reported independently across divisions and Strengthening governance, ethics and anti-corruption measures subsidiaries. The reporting has now been consolidated into a single, comprehensive view that incorporates the risk description, root causes, existing controls and, IR r efer to the integrated report for more detail on dealing with corruption and criminality. where applicable, treatment actions. The consolidated approach enhances executive management’s ability to exercise effective oversight, and enables consistent monitoring and assurance. 12 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued with ESG standards. This work reassures investors of ethical stewardship and reinforces our cultural renewal Infrastructure Common criminal Impact on Impact on South anchored in Sinobuntu, the value of humanity, ensuring that resources are managed for the collective good. asset activity Eskom Africa Security investigations are not merely an enforcement function; they are a catalyst for transformation. Every Transmission lines Theft of conductors and Grid instability conviction secured and every control strengthened contributes to sustainable value creation. For the public, tower steel this translates into a more reliable energy supply; for investors, transparent governance that underpins Eskom’s Substations Cable theft and vandalism Electricity outages • Hospitals turnaround; and for employees, an organisational culture where integrity is recognised and upheld. By confronting coal theft and fraud decisively, Eskom safeguards dignity, sovereignty and the promise of a transformed future. Transformers Oil theft and copper theft Equipment failure • Water treatment plants PUBLIC FINANCE MANAGEMENT ACT (PFMA) COMPLIANCE Mini substations Complete stripping of Extended outages • Municipal services components • Mining operations IR r efer to the integrated report for more detail on PFMA compliance Distribution networks Illegal connections and Revenue losses • Industrial customers cable theft We address governance, compliance and control challenges associated with irregular expenditure, fruitless and • Schools and Pylons Removal of structural Risk of collapse communities wasteful expenditure and losses arising from criminal activities. Risks relating to the completeness and accuracy steel members of PFMA disclosures remain a focus area, reflecting weaknesses in financial records, supporting documentation, assessment processes and compliance reporting. These challenges are being actively addressed through the Metering systems Tampering and bypassing Electricity theft implementation of an intensive Audit Recovery Programme, strengthened governance and control frameworks and enhanced oversight and assurance mechanisms. Theft and vandalism have necessitated a response to Our security investigations function intensified FY2026 PFMA Results: Governance, Financial Sustainability and Social Impact the transmission and distribution supply challenges. its efforts in 2026, securing 13 convictions against Load reduction is implemented as a targeted network individuals and organised syndicates involved in Impact area Key pressure points Evidence of progress Sustainability implication protection measure to safeguard communities and coal‑related criminality. These outcomes send a clear critical electricity infrastructure in areas where local message: accountability is non‑negotiable and Eskom Governance Recurring audit qualification Audit Recovery Programme, Stronger controls are demand exceeds the capacity of the distribution will rigorously protect the assets entrusted to it. Coal, highlights continued weaknesses enhanced assurance processes, essential to improve audit network. Unlike load shedding, which is driven by the lifeblood of the generation fleet, is safeguarded in governance, internal controls consequence management and outcomes and restore national generation constraints, load reduction is through weekly independent sampling by a qualified and regulatory compliance. National Treasury alignment stakeholder confidence. applied to prevent the overloading of transformers geologist, reinforcing transparency and quality demonstrate a clear commitment and mini substations, often exacerbated by illegal assurance. In parallel, the deployment of systems at toward governance maturity. connections, electricity theft, meter tampering and weighbridges by Eskom’s Primary Energy Department R135.9 billion in irregular Improved recoveries and reductions Financial discipline remains Financial unsafe network usage. across multiple power stations has strengthened sustainability expenditure and R3.4 billion in in unresolved matters indicate critical to protecting public oversight and reduced opportunities for manipulation. fruitless and wasteful gradual financial control resources and supporting By proactively reducing demand in affected areas, In addition, another system provides monitoring expenditure continue to place improvements. long-term sustainability. Eskom helps prevent equipment failures, fires, at weighbridges and conducting data analysis to pressure on Eskom’s balance explosions and prolonged electricity outages, while accurately determine the quantities of coal received, sheet and stakeholder protecting public safety and preserving the reliability as well as heavy fuel oil. These systems are deployed confidence. of the distribution system. As part of our commitment across Eskom-operated weighbridges and at supplier to energy security and sustainability, we continue to weighbridges. Collectively, these interventions have Social impact Electricity theft and illegal Improved recoveries and revenue Reducing theft supports work with law enforcement agencies, municipalities improved plant reliability, curtailed financial losses and connections increase network protection interventions indicate energy reliability, safety and local communities to address the root causes of restored confidence among communities, contractors instability, safety incidents, stronger enforcement and control and more equitable access network overloading and to implement long-term community risks and service effectiveness. to electricity. and investors. solutions that will enable the phased elimination of interruptions. load reduction by March 2027. Fraud, particularly within procurement processes, While audit findings persist and legacy irregular expenditure remains material, clear progress is evident through corrodes governance and diverts critical resources enhanced governance controls, significant reduction of historic balances, lower fruitless expenditure, improved COAL THEFT AND FRAUD from service delivery. By embedding robust forensic recoveries and stronger regulatory alignment. Continued execution of the Audit Recovery Programme and Coal theft and fraud remain among Eskom’s most frameworks and digital oversight mechanisms, we strengthened control environments will be critical to improving audit outcomes, restoring stakeholder confidence material integrity risks, threatening operational have reduced systemic vulnerabilities, ensured fair and and supporting our long-term sustainability objectives. stability and eroding public confidence. value‑based contracting and strengthened compliance 13 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued STAKEHOLDER MANAGEMENT Through deliberate and focused stakeholder engagements we have reflected with our partners, on key Partnerships for the Goals Eskom: powering the SDGs sustainability outcomes as shown below: Partnerships have proven to be critical to the smooth operations and strategic future of the organisation. A Policy and regulatory partners Reputation and finance partners notable example is the Electricity Market Advisory Forum established by the regulator NERSA, comprising diverse stakeholders, to guide the development of a competitive power market. Collaboration will be significant for co-investment opportunities in renewable projects, technical cooperation for grid expansion and supporting Key partners Key partners regional power pool initiatives to optimise energy across Southern Africa. • Parliament and National Treasury • S&P Global and Moody’s • Minister of Electricity and Energy • World Bank and IMF Collaborating with government, industry and international partners • National Energy Crisis Committee • Civil society and media • NERSA and DMRE • Environmental NGOs Our sustainability is anchored in the quality of our Stakeholder insights continue to inform Eskom’s • Our investors • NATJOINTS relationships with stakeholders. We operate under a sustainability priorities, material topics and ESG Engagement Engagement revised Stakeholder Management Policy aligned with disclosures, contributing to a more resilient, We met Treasury debt-relief terms, licensed the We earned S&P credit upgrades, disclosed coal, diesel King IV TM and the AA1000 Stakeholder Engagement responsible and sustainable organisation that creates NTCSA as Market Operator and aligned on IRP 2025. and electricity supply contracts in compliance with the Standard, ensuring inclusive, transparent and long-term value for South Africa and its stakeholders. Supreme Court of Appeal (SCA) judgment and responsive engagements to societal needs. We have Impact showcased AI-led grid maintenance. progressed from reactive crisis communication to a Our engagements helped shift the focus from We secured the legal and fiscal base for a stable more proactive narrative, focusing on market reform, operational recovery to proactive delivery, enabling market transition. Impact operational stability and the energy transition. clearer dialogue on system performance, financial We lifted our global reputation and opened new sustainability, electricity market reform, municipal blended-finance pathways. Meaningful stakeholder engagement remains debt, industrial competitiveness and the Just Energy fundamental to our ability to create sustainable value, Transition. maintain our social licence to operate and deliver on Our journey this year has been defined by a transition Customer and market partners People and community partners our strategic objectives. Our stakeholder strategy is aligned to Eskom’s corporate priorities and ESG from restoring our foundations to delivering tangible commitments, ensuring that stakeholder perspectives value for South Africa. We have moved from a period of operational recovery to one of purposeful delivery Key partners Key partners are considered in key decisions relating to electricity and market leadership. • Energy Intensive Users Group (EIUG) • Local communities security, network modernisation, sustainability • Minerals Council and business • Suppliers and contractors performance, transformation and the energy By fostering a culture of transparency and proactive • SALGA and CoGTA • Organised labour transition. The strategy is guided by the principles engagement, we have achieved historic milestones, • International energy traders • Youth Employment Service of inclusivity, accountability, responsiveness and including over three hundred consecutive days materiality and focuses on strengthening relationships, • Diplomatic corps • Employees and law enforcement without national load shedding and a celebrated managing risks, addressing stakeholder concerns and return to profitability. We have also strengthened Engagement Engagement identifying opportunities for shared value creation. our social licence to operate by moving our We set an industrial smelter tariff, launched the We passed 300+ days without load shedding, launched Through this stakeholder-centred approach, we seek energy transition plans “from policy to proof ” R5.7bn smart-meter rollout and signed Distribution JET skills development zones and secured anti-sabotage to foster trust, enhance transparency, mitigate social, through community-led projects and national skills Agency Agreements. convictions. environmental and operational risks and support development. These successes are the direct result Impact Impact the successful implementation of strategic initiatives, of the collaborative spirit shared with our diverse We retained industrial demand and secured revenue We stabilised operations and kept a strong social including the Just Energy Transition. stakeholder groups. and municipal-debt recovery. licence to operate. Our overall contribution: through structured engagement across policy, finance, market and community partners, we strengthened trust, stabilised operations and advanced the partnerships for a more resilient, sustainable Eskom. 14 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued KEY STAKEHOLDER ENGAGEMENT • Communities and the Public: We moved the Committee on Appropriations (SCOA). To Stakeholder feedback is systematically monitored HIGHLIGHTS JET narrative to demonstrating implementation address the municipal debt crisis, we initiated through daily media assessments, formal engagement • Industry and Investors: We engaged global markets with the launch of the Grootvlei Climate Smart lawful Promotion of Administrative Justice Act platforms, public participation processes, customer through the World Economic Forum (Davos) Horticulture Centre, demonstrating local economic based enforcement for supply interruptions in interactions and ongoing stakeholder relations and investor roadshows in London and New upliftment during coal station transitions. We defaulting areas while accelerating Distribution activities. The insights gained help inform strategic York, focusing on financial turnaround and grid further invested in the national skills pool by Agency Agreements (DAAs). decisions, risk management and operational expansion. Critical agreements were finalised, awarding student bursaries and implementing smart • Environmental and Social Responsibility: We responses. We continue to engage proactively including a rules-based 62c/kWh pricing framework meter rollouts to mitigate localised load reduction. managed public consultations for the Medupi with stakeholders on key issues that impact the for the ferrochrome sector (Samancor/Glencore) • Government and Regulators: We maintained Flue Gas Desulphurisation (FGD) project and business and the energy sector. Key issues raised to protect over 3 600 jobs. 100% compliance with National Treasury debt celebrated the 40th anniversary of Koeberg, through media desk reporting across communities, relief conditions, as verified by the Standing securing the 20-year life extension for Unit 2 to customers, employees, suppliers, regulators and other ensure nuclear baseload stability. stakeholders during FY2026 reflect twelve key themes as shown below. ISSUE RAISED BY STAKEHOLDERS ASSOCIATED RISK ESKOM RESPONSE 1 Transmission unbundling Financial sustainability, investor confidence and market Implementing transmission reform through structured stakeholder engagement, regulatory oversight transition risk. and robust governance processes. 2 Coal power station closures and the Security of supply, socio-economic impacts and transition Balancing security of supply, decarbonisation and socio-economic considerations through responsible Just Energy Transition (JET) implementation risk. JET planning and stakeholder engagement. 3 Environmental compliance and Regulatory compliance, environmental performance and Investing in environmental improvement initiatives while maintaining reliable electricity supply and Minimum Emission Standards (MES) reputational risk. engaging with regulators. 4 Governance, corruption, criminality Reputation, stakeholder trust, governance and accountability Strengthening governance controls, transparency, investigations, consequence management and and accountability risk. collaboration with law enforcement agencies. 5 Generation reliability, planned maintenance Operational performance and long-term security of supply risk. Sustaining generation recovery through planned maintenance, operational excellence and fleet and fleet performance performance improvement initiatives. 6 Load shedding and load curtailment impacts Business continuity, customer satisfaction and economic Improving supply reliability, optimising system performance and communicating operational on customers and industry productivity risk. constraints transparently. 7 Customer tariffs, rooftop solar Affordability, regulatory compliance and customer relationship Providing customer guidance and engaging on tariff affordability, compliance requirements and the and customer rights risk. integration of rooftop solar. 8 Industrial competitiveness Investment, industrial growth and economic competitiveness Working with government, regulators and industry to balance affordability, infrastructure investment and electricity pricing risk. and economic growth. 9 Transmission expansion, grid development Infrastructure delivery, grid capacity and renewable energy Accelerating transmission expansion to enable renewable energy integration, economic development and renewable energy integration integration risk. and long-term energy security. 10 Long-term generation strategy, repowering Strategic alignment, energy transition and future energy Advancing long-term generation planning, repowering initiatives, renewable energy projects and and energy transition technologies security risk. emerging technologies. 11 Funding models, infrastructure investment Capital funding, project delivery and transformation risk. Exploring alternative funding mechanisms while leveraging procurement to support transformation and procurement transformation and local economic development. 12 Labour relations, restructuring and Workforce stability, labour relations and organisational change Engaging organised labour on workforce planning, restructuring processes and employment-related employment security risk. matters. 15 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued To assess the effectiveness of stakeholder engagement and the strength of stakeholder relationships, we conduct a biannual multi-stakeholder perception survey aligned with the principles of King IV TM. The survey measures stakeholder views on inclusivity, transparency, responsiveness, materiality, reputation and accountability, providing an important indicator of stakeholder trust and confidence. Findings are shared across the business and used to strengthen stakeholder engagement strategies, inform ESG priorities and support continuous improvement The survey findings provide valuable insights into where Eskom is strengthening stakeholder trust and where additional attention is required, helping to shape engagement priorities, material ESG topics and sustainability actions. Government and Industry and energy Financial Environmental and International and Parliament and Municipal Contractors and public sector sector institutions civil society diplomatic regulators stakeholders suppliers 70% 60% 75% 60% 75% 65% 60% 65% Stronger strategic Appreciate improved Confidence in reforms Concerns over coal Supportive of JET Acknowledged Challenges with debt, Improved communication, alignment and engagement; concerns progress requires dependency, emissions partnerships and improved engagement; illegal connections and concerns around improved recognition remain on tariffs, grid continued financial and pace of Just regional energy continue to prioritise service delivery payment terms and of role in energy access and execution discipline and Energy Transition leadership; expect governance and coordination. procurement turnaround security and reform. pace. transparency. implementation. consistent delivery. accountability. times. Key insights Stakeholder confidence is Engagement quality improved, but Execution pace, grid capacity Transparency, timely Delivery against commitments is Focused collaboration on reforms improving with better operational frequency and accessibility can be and affordability remain key communication critical across all essential to building long-term and JET will strengthen stakeholder stability and leadership visibility. strengthened. concerns. stakeholder groups. trust. confidence. Overall score Very positive Positive Moderately positive Neutral Negative 70 80–100 70–79 60–69 40–59 <40 The FY2026 Stakeholder sentiment indicates growing recognition of Eskom’s improved operational stability and increased stakeholder engagement, with continued expectations for strengthened communication, improved coordination, enhanced transparency and sustained delivery across strategic priorities and stakeholder commitments. 16 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued INTEGRATED RISK MANAGEMENT These challenges may limit grid capacity, reliability and future growth. In addition, ongoing exposure to fraud, Effective risk and resilience management is fundamental to our ability to create sustainable value and achieve its corruption and irregular activities continues to pose governance risks, undermining stakeholder confidence and strategic objectives. By embedding risk management across all business processes, we proactively identify, assess sustainable value creation. Our priority 1 risks are reflected below. and manage risks and opportunities, including ESG considerations that may impact long-term sustainability and stakeholder value. The organisation applies an integrated risk management approach aligned with ISO 31000 and Risk Category Treatment informed by international leading practices, with independent benchmarking and maturity assessments confirming 1. Financial sustainability is Financial We are pursuing stronger debt recovery, government an advanced level of capability supported by strong governance, policies and strategic alignment. compromised by growing support, smart meter deployment, energy loss municipal debt, energy reduction and new revenue opportunities to improve losses and declining sales financial sustainability. 2. Possible cyber-attack on Operations Advanced endpoint security solution strengthens Board systems and infrastructure, Eskom’s cybersecurity resilience by enhancing the oversight due to insider threats protection of critical information assets and systems, supporting the organisation’s information security objectives and broader business mandate. Board Risk 3. A surge in mental health Health and Strengthen employee mental health and wellbeing ! Emerging risks Committee Accountability challenges amongst Safety through enhanced support, monitoring, leadership employees training, psychological safety and chronic disease Resilience initiatives Transparency management. Risk and Sustainability ESG matters Long-term value 4. Reduced Transmission grid Operations Ancillary services are being incorporated into future and Exco Committee quarterly reporting stability and reliability Power Purchase Agreements, supported by NTCSA- approved product definitions. National Control is well prepared for the evolving energy mix. Group, divisional and subsidiary governance 5. Failure to set up a Operations The MO licence was issued in November 2025, the structures sustainable Market Market Code is awaiting final NERSA approval and Operator (MO) the Market School has been established to support stakeholder readiness. Identify, assess, manage risks and verify through structured peer-review process 6. Inability to timeously Operations TDP-related challenges have been identified and implement Transmission are being actively managed. Progress includes the Development Plan (TDP) qualification of additional steel suppliers and securing Government support for servitude acquisition for new network assets. From a sustainability perspective, we face several strategic and operational risks that may affect our ability to 7. Delayed refurbishment/ Operations TDP projects are prioritised through enhanced deliver long-term economic, social and environmental value. asset renewal outage management, stakeholder coordination, Financial sustainability remains under pressure due to escalating municipal debt, energy losses, declining electricity of Transmission supplier oversight and capacity development. This is sales and growing cyber security threats. Social sustainability challenges are heightened by increasing mental infrastructure also supported by a three-year procurement strategy. health concerns within the workforce, while operational sustainability is impacted by delays in securing ancillary 8. Fraudulent, corrupt and/or Financial/ We are pursuing stronger debt recovery, government services and renewing ageing infrastructure required to maintain system reliability and resilience. The transition to irregular activities within Operations support, smart meter deployment, energy loss a more sustainable and competitive electricity sector is further constrained by delays in establishing a sustainable Eskom Holdings reduction and new revenue opportunities to improve Market Operator, implementing the Transmission Development Plan and addressing infrastructure refurbishment financial sustainability. backlogs. 17 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued The figure below illustrates the movement of our priority 1 risks between FY2025 and FY2026, highlighting ENTERPRISE RESILIENCE venues, as well as members appointed to these how the risk profile has shifted in response to changes in the operating context, control measures and strategic Eskom’s strategic resilience framework informs structures. priorities. the implementation of Integrated Emergency Response, Business Continuity Management and A National Blackout Exercise was conducted which Disaster Management across national, provincial and incorporated scenario-based exercises, training and Movement of Priority 1 Risk Profile: FY2025 to FY2026 divisional levels. discussions, with 850 participants engaged in assessing divisional and provincial preparedness in support of FY2025 Priority 1 Risks FY2026 risk position All Eskom divisions and subsidiaries have instituted continuous improvement of preparedness, response Energy losses: illegal dashboards and tracking systems which they are using and recovery capacity and capabilities. connections, electricity theft and Consolidated into broader to continuously improve and manage their resilience ghost vending enterprise financial risk programs. This is reflected in the varying levels of Disasters globally and their impact on electricity maturity across governance structures, reporting supply continue to be tracked and monitored with Environmental compliance / Moved to Priority 2 rating mechanisms, resilience metrics and data quality. In recommendations and learnings informing Eskom’s licence to operate FY2027, control adequacy will be piloted towards Disaster Management Working Groups (DMWG) being embedded into resilience reporting to provide contingency planning. More specifically, severe Public harm linked to operations Risk has materialised and weather events (heatwaves, hurricanes, floods and is managed operationally more objective insights to continuously improve and mature divisional resilience. winter storms) have posed profound challenges for Security response during the secure and reliable operation of energy systems. Moved to Priority 2 rating disasters Resilience capability interventions held throughout the year strengthen competencies across incident Geopolitical instability is also introducing risks that Serious and violent response management; business continuity impact across electricity value chains. More recently, security incidents affecting Moved to Priority 2 rating Transmission management and disaster management. Response in response to the war in the Middle East, Eskom structures are in place and have been trained in undertook a resilience risk assessment through the Drivers of movement the incident command system. There are effective divisions and subsidiaries to manage any disruptions to strategic response teams at the national and provincial fuel and supply chain disruptions. Business continuity Strengthened control Improved residual risk position Targeted treatment plans measures and refined risk taxonomy level as well as working and effective tactical measures remain critical to sustain operations should command centres in all divisions and provinces, the disruption persist over an extended period, until Movement reflects improved risk management effectiveness, not elimination of risk. with tested and operational online and physical normal conditions are restored. During FY2026, we undertook a comprehensive strategic risk identification process through engagements with the Board, Executive Management and sector specialists. This process resulted in the identification of eight strategic risks, grouped into three key impact areas: business model failure, operating model failure and financial performance decline. These strategic risks reflect the critical challenges and uncertainties that may affect our long-term sustainability, competitiveness and ability to create value within an evolving and increasingly liberalised electricity market. Key risk themes identified include funding constraints, business continuity challenges, regulatory developments, supply chain vulnerabilities, value chain disruptions and workforce capability and culture considerations. Collectively, these risks have the potential to influence our financial resilience, operational effectiveness, strategic transformation and ability to respond to changing market dynamics. Subsequent to this process, we implemented a structured strategic risk management programme to monitor, manage and treat these risks while strengthening organisational resilience and supporting the achievement of our strategic objectives. 18 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Governance continued QUALITY MANAGEMENT Quality management continues to deliver measurable business impact by strengthening governance, improving process discipline, reducing operational risk and enabling more reliable performance across Eskom by driving compliance to ISO 9001:2015. The Eskom Quality Health Index (EQHI) is a key enabler driving operational excellence. The EQHI is being enhanced and serves as an integrated performance tool to enable key performance priorities. It has been aligned to business plans, the achievement of Eskom’s long-term strategic objectives and the maturity of quality management practices across operating divisions and subsidiaries. As at March 2026, the EQHI performance was 3.37. By aligning KPIs to critical business priorities, the EQHI enables leadership to identify underperforming areas, prioritise interventions and monitor whether quality initiatives are translating into improved business performance. The EQHI performance trends demonstrate that quality management is contributing to continual improvement. However, persistent gaps in documentation management, supplier quality assurance and the rigour of management reviews continue to affect business efficiency and assurance confidence. Targeted interventions in these areas are developed to close control gaps, improve accountability, reduce repeat findings and accelerate GOVERNANCE REFLECTIONS progress towards operational excellence. • Our efforts continue to strengthen governance controls, transparency and assurance, through mature ethics governance structures, formal oversight by Exco, SES and enhanced divisional ethics risk monitoring. Enhancements to Eskom’s Document and Records • In line with King IV™ Principles 13 (compliance) and 15 (assurance), the organisation is proactively advancing from compliance-based reporting toward Management (DRM) system are ongoing. Group strengthened assurance through improved data reliability, periodic ethics risk assessments and the development of outcome-based performance metrics that Technology, in collaboration with the Quality demonstrate control effectiveness and ethical culture. Management Department, is implementing OpenText • This governance approach is further reinforced by independent sustainability assurance of selected KPIs. This amplifies the credibility, transparency and integrity of as the core DRM technology platform across the disclosures aligned to GRI Standards and increasing alignment to IFRS Sustainability Disclosure Standards (IFRS S1 and S2). Group. Migration of documents and records from the previous Hyperwave system to OpenText • Anti-crime, anti-fraud and infrastructure theft prevention remain material risk priorities, supported by strengthened preventive controls, enhanced monitoring and exceeds 90%. accountability mechanisms and a continued focus on transparently reporting measurable results where available. 19 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management E S G KEY ENVIRONMENTAL ASPECTS RISKS • Key governance risks: Atmospheric emissions • Reputational risks: Avian mortalities and non-compliance, environmental legal breaches, declining ash beneficiation volumes threaten water pollution, climate-related extreme stakeholder confidence and licence to operate. weather, water scarcity, carbon-tax exposure, • Mitigation actions: Accelerate emissions- biodiversity impacts and ageing coal-fired fleet abatement investments, strengthen performance constraints. environmental governance, enhance predictive • Emerging pressures: Increased legal constraints, maintenance, expand water reuse and persistent emissions challenges, flooding, extreme pollution-control infrastructure, improve climate rainfall, water stress, tighter carbon regulations resilience, increase biodiversity interventions and sustainable finance requirements heighten and implement measurable decarbonisation 3 physical and transition risks. targets with executive accountability. Key Environmental Indicators Air Quality and Emissions Performance VALUE-CREATION/OPPORTUNITIES • Key environmental achievements: Improved • Positive outcomes: Exceeded water-efficiency Water Stewardship and Effluent Management water stewardship, significant year-end targets, eliminated hazardous legacy materials, Circular Economy particulate emission reductions, successful PCB reduced avian mortalities and delivered Biodiversity and Natural Capital phase-out, stronger ESG governance, expanded environmental and socio-economic benefits Strengthening Compliance air-quality offset programmes, enhanced climate through community-focused programmes. Future Outlook resilience planning, biodiversity stewardship and • Future focus: Accelerate renewable-energy Environmental Management Reflections the launch of Eskom Green. deployment, scale circular economy initiatives, • Value created: Shifted from compliance- embed natural-capital thinking and strengthen based environmental management to strategic quantified environmental performance stewardship supporting operational resilience, disclosures. stakeholder confidence and long-term sustainability. The year marked a meaningful strengthening of our environmental performance, with clear year-end improvement in air emissions management, water efficiency and environmental governance. This reflects a transition from reactive compliance management towards a more deliberate environmental stewardship, even as we continued to manage legacy constraints associated with an ageing coal-fired fleet and tightening regulatory expectations. The strongest environmental signals in the year were improved specific water consumption, completion of the Polychlorinated Biphenyls (PCB) phase-out programme, strengthened ESG framework and ongoing community interventions through air quality offsets and circular economy initiatives. 20 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management continued KEY ENVIRONMENTAL INDICATORS Life on Land Eskom: powering the SDGs Three-year performance against FY2026 targets KPI FY2024 FY2025 FY2026 Target–FY2026 We operate in diverse environments and minimising impacts on land and wildlife is a priority. Relative particulate emissions 0.79 0.64 0.98 0.35 The Ingula, Majuba and Koeberg reserves contribute to national biodiversity goals. Ingula Nature (kg/MWh sent out) Reserve, South Africa’s 27th Ramsar Site, protects important high-altitude grassland and wetland ecosystems that support threatened species. Specific water consumption 1.43 1.40 1.34 1.37 (annual average) (ℓ/kWh sent out) Legal contraventions (total incidents) 68 65 67 0 Protecting terrestrial ecosystems and biodiversity during operations Red-listed avian mortalities 258 210 182 Declining trend PCB phase-out completion In progress In progress Completed Dec 2023 deadline Air quality offset households 4 090 5 591 7 232 Progress to long term Ash beneficiation (million tons – Mt) 2.5 4.0 2.91 Increasing trend AIR QUALITY AND EMISSIONS The business continues to operate within a PERFORMANCE constrained environment shaped by ageing assets, Air quality remained one of Eskom’s most material retrofit requirements, Minimum Emission Standards environmental priorities. The year reflected a clear (MES) obligations and the need to balance recovery trajectory, while particulate emissions were environmental compliance with electricity security. significantly above target in the early part of the year We are committed to achieving sustainable due to plant reliability challenges and suboptimal compliance through strategic investment in emissions performance of abatement equipment, targeted reduction initiatives and engaging with regulators interventions delivered substantial improvement by and other stakeholders to ensure a balanced year-end. transition that supports both environmental At year end of FY2026, relative particulate emissions and socio-economic objectives. We have made worsened from 0.64kg/MWhSO in FY2025 to steady progress in implementing MES exemption 0.98kg/MWhSO. For quarter one of FY2026, we conditions, with measurable advancements across Our environmental stewardship is in the achievement integrated governance approach and reinforced the experienced high annual average performances, but air quality transparency, health and socio-economic of two strategic objectives: to reduce the environmental use of environmental Key Performance Indicators this trend has been improving since beginning of the interventions. footprint of our activities and to position Eskom as an (KPIs) in business planning, performance oversight second quarter, although it remained above target environmentally sustainable utility. During the year, and executive accountability. This strengthened (0.35kg/MWhSO). The challenge for FY2027 is to these objectives were more explicitly linked to the governance and supported a more mature move to sustained improved emissions performance wider ESG agenda, creating a clearer line of sight environmental response across the business. across the coal fleet. between environmental performance, enterprise risk management, operational recovery and long-term Environmental Improvement Plans continue to be value creation. implemented and subjected to combined assurance. Environmental matters were increasingly positioned Board oversight continued through the SES not only as compliance obligations but also as material Committee, Exco supported by the Environmental environmental risk to be treated and opportunities Steering Committee (ESC) and strengthened to be pursued in pursuit of our two environmental operational processes. A notable development objectives. was the Board approval of our ESG Framework in November 2025, which formalised a more 21 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management continued Our Air Quality Offsets (AQO) programme is being demonstrating the success of our AQO initiatives in Limit =19ppb implemented within vulnerable communities near reducing pollutant levels in the affected areas. our stations. The programme has a planned target of 36 000 households, of which 7 232 have been AMBIENT AIR QUALITY MONITORING 17.0 completed, to date, while we continue to secure Ambient air quality monitoring around our coal- SO2 concentrations (ppb) funding for further expansion. We have commenced fired power stations remains an important tool for 13.0 with Phase 2 which includes settlements around understanding and managing our environmental Kendal, Tutuka, Duvha, Arnot, Matla, Lethabo and footprint. In the 2026 financial year, we continued 9.7 10.5 10.0 to monitor key pollutants, including sulphur dioxide 9.0 9.0 9.11 Kriel Power Stations. 8.0 8.0 (SO2), nitrogen dioxide (NO2), particulate matter 7.0 7.0 In addition to air quality improvement, the (PM10 and PM2.5) and ozone (O3), across monitoring 6.0 5.0 programme also delivered socio-economic benefits sites located in South Africa’s air quality priority areas 4.0 4.0 4.0 3.1 3.15 such as job creation, contractor involvement and (Waterberg-Bojanala, Mpumalanga, Highveld and Vaal skills development. Household interventions in Triangle Priority Areas). Kwazamokuhle and Ezamokuhle led to an estimated n a i i s R51.8 million in local investment, prioritising The purpose of our ambient air quality monitoring hle hle bela de ajub illag e pi ne ng ola ater ukile tvle ndal non gie ati tein raai network is to measure the quality of air in the vicinity o ku oku ilo Cam M l V e du akha rapo Ph W S iv o o e mzi O K om sfon otd community-based subcontractors. Over 200 people am Zam S i e M a s a nd r K Ez Kr M M G E nd Gro were employed, with a strong representation of the of our power stations and operations to determine a Ra Ela our impact on the receiving environments and Kw youth (69%) and women (42%), including roles in Site liaison, monitoring and education. populations. The network has monitoring sites set Nitrogen dioxide annual concentrations also remained below permissible annual standards across all our up either for compliance, research or environmental monitoring sites; hourly exceedances were only recorded at one site – the Grootdraai monitoring site, which is We undertook an investigation to determine impact purposes. a dual compliance and research site aimed at measuring our impacts from Tutuka power station, particularly on effectiveness of the offsets programme, at the various water bodies (Grootdraai dam). settlements. The success of these interventions is Annual sulphur dioxide concentrations remained primarily assessed based on their ability to lower below the legislated standards, short-term Limit = 21ppb the concentration of pollutants in the environment, exceedances occurred even though the allowable particularly the ambient levels of particulate matter number of exceedance frequency was never (PM). Results show a net emissions reduction, breached. 17.0 NO2 concentrations (ppb) 12.0 11.0 10.0 9.7 9.5 9.0 9.0 8.0 8.3 8.4 7.0 6.0 6.0 5.0 5.0 4.9 4.0 3.0 uh le uh le ela den juba ti ge up i an e g on Pho la r ate ivuki le i s al vle Ogie end onte in ai ni k k ob m a ma illa ed sakh arap ot td ra ino mo mo Sil Ca M Ko riel V M a W S o K s f o z a a M nd Gr nd o Em Ez aZ K M Ra Ela Gr Kw Site Particulate matter remains the most significant air quality challenge, with PM10 and PM2.5 exceedances recorded at several monitoring stations. These results reflect the combined influence of power generation activities and other local sources such as low-level combustion, mining, gravel roads, agricultural activity, biomass burning and ash disposal areas. 22 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management continued 65.0 Ozone also remains an area requiring continued attention, with exceedance frequencies recorded at most of our monitoring stations. Ozone exceedance limits were surpassed at 16 of 19 monitoring stations. It must be noted PM10 concentrations (ug/m3) 60.9 60.7 56.0 that ozone is not emitted directly from sources such as power stations but is formed as part of photochemical 51.0 51.0 51.9 49.0 reactions when NOx (from sources such as vehicles and industries) and volatile organic compounds react 45.8 40.5 in the presence of sunlight and heat. It is a critical pollutant to monitor from an ESG perspective, for better 37.0 37.0 37.0 32.6 understanding of regional atmospheric chemistry, general pollution trends and associated health impacts. 28.0 29.0 24.6 We continue to use monitoring results to inform compliance management, air quality improvement initiatives and community-focused offset programmes aimed at improving air quality in areas impacted by Eskom’s emissions. WATER STEWARDSHIP AND EFFLUENT MANAGEMENT Water stewardship continued to be a material sustainability priority and an area of environmental performance le le la n a ti ge i e g la r ile i l in ai improvement. We achieved one of our strongest water-use performances in recent years through focused ku h ku h lob e md e aju b ma illa du p ha n po n Ph o ate ivu k tvl e nd a nt e dr a o o Si Ca M Ko iel V e ak ar a dW S oo Ke dsfo t operational interventions, including leak reduction programmes, improved water-use efficiency, optimisation of am am M as n Gr oo Ez Kr M M Ra n Gr wa Z Ela cooling systems and strengthened water management practices. The continued implementation of Zero Liquid K Effluent Discharge (ZLED) principles across relevant coal-fired power station operations further enhanced water Site conservation efforts and reduced environmental risks associated with effluent management. These initiatives support Eskom’s contribution to water security and climate resilience in a water-constrained country. 45.0 Clean Water and Sanitation Eskom: powering the SDGs PM2.5 concentrations (ug/m3) 31.8 We constantly strive, through efficient cooling and process upgrades (fixing leaks, recycling ash water and dredging dams) to reuse water and contribute to SDG 6 by reducing freshwater withdrawal and preventing 25.0 26.0 pollution. We are collaborating with the Department of Water and Sanitation (DWS) on projects like the 23.1 21.0 21.0 20.0 Lesotho Highlands Water Project Phase 2 and the Mokolo-Crocodile Water Augmentation Project to ensure 19.0 16.0 long-term water availability for operations and neighbours. 12.0 13.0 12.0 13.0 12.0 10.0 Optimising water usage and safeguarding water resources – responsible stewardship hle n le g ile ne la a ba ge i er i ni al vle on ol de up uh e uk nd ha illa aju at o u ob Ph m ap ed ot zin ok ok W Siv ak Ke lV M Sil Ca ro ar M am am Em as ie nd M G M Kr aZ Ez Ra Kw Site 23 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management continued Specific water consumption improved from 1.40ℓ/kWhSO in FY2025 to 1.34ℓ/kWh in FY2026, performing well against the year-end target of 1.37ℓ/kWhSO. Although there were mid-year pressure points, the overall trajectory improved steadily through the second half of the year, demonstrating stronger operational control and a more disciplined response to water efficiency. Progressively our water consumption in the reported year shows better performance against the past 2 years – as reflected in the graph below. Specific water consumption, ℓ/kWhSO - YTD (accum) 1.56 1.49 1.47 1.45 1.45 1.44 1.44 1.44 1.44 1.44 1.43 1.43 1.43 1.43 1.43 1.43 1.43 1.42 1.41 1.41 1.41 1.40 1.41 1.40 1.40 1.38 1.38 1.38 1.37 1.37 1.36 1.36 1.36 1.34 1.33 1.31 Life Below Water Eskom: powering the SDGs April May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar FY2024 FY2025 FY2026 Target FY2026 We maintain water quality standards and cooperate with regulators (e.g. Department of Water and Sanitation) to protect marine and freshwater ecosystems downstream. Our ash water and other effluents are carefully managed (with many sites working toward ZLED plans) to reduce this risk. In addition, we have been engaged In South Africa’s water constrained environment, improved water use efficiency enhances Eskom’s operational in riverine biological monitoring as part of a long-term study on the effects of operations on the surface waters. resilience, reduces exposure to catchment-level risks and demonstrates responsible stewardship of a scarce and shared resource, particularly in communities already facing increasing water stress. Water stewardship is also an important factor in driving climate resilience, as the impacts of drought, changing rainfall patterns and long-term water security become increasingly material for business continuity and sustainability. Protecting aquatic ecosystems by managing water use and preventing pollution Water compliance requires continued management focus and disciplined execution. Unauthorised water releases continued to contribute significantly to environmental legal contraventions. We responded through containment and remediation measures, targeted infrastructure improvements, strengthened oversight of dams, return-water systems and stormwater controls and a renewed focus on workforce awareness and accountability. Our year-end figures demonstrate that improved water-use efficiency and strengthened effluent management can be achieved simultaneously when operational discipline, infrastructure investment, maintenance practices and governance controls are effectively aligned. 24 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management continued Recognising the social dimension of ESG, we continued to support initiatives that demonstrate how responsible Responsible Consumption and Production Eskom: powering the SDGs environmental practices can generate meaningful social impact through collaborations and partnerships. One such example is Interwaste’s Give2Green Initiative, which promotes recycling while creating value for vulnerable communities. Through this initiative, plastic bottle tops are collected and exchanged towards the provision Despite relying on non-renewable resources and generating waste, we have embedded circularity into our of wheelchairs for individuals in need. Since the programme’s inception two years ago, Eskom employees, in sustainability strategy. Through continuous improvement, waste separation and circular economy principles partnership with local government stakeholders and other partners, have collectively contributed to the donation across the value chain, we reduce our environmental footprint and support compliance objectives. Our of five wheelchairs. This initiative illustrates how small everyday actions can support a circular economy while developing Circular Economy Framework integrates circularity into planning, procurement, asset management, improving the quality of life of community members, demonstrating the shared value that can be created through waste management and reporting, strengthening environmental stewardship, financial sustainability and social environmental responsibility and social commitment. value creation. Responsible production and waste management CIRCULAR ECONOMY Circularity remained an important component of our environmental and sustainability agenda, contributing to environmental footprint reduction, improved resource efficiency, value creation and risk mitigation. Circularity gained increased strategic prominence as we advanced the development of our circular economy position paper and supporting standards framework, strengthening the foundation for embedding circular economy principles across the business. Employee participation in recycling campaigns and community-based waste initiatives further demonstrated how responsible environmental practices can create broader social and economic value. These initiatives highlighted the interlink between resource stewardship, environmental sustainability, community development and Eskom’s Sinobuntu value, reinforcing the principle that sustainability outcomes can deliver shared benefits for both people and the environment. Another significant environmental milestone in the past year was the successful closure of Eskom’s polychlorinated biphenyls (PCB) phase-out programme. Following the completion of the phase-out process in the previous reporting period, an independent audit confirmed that all known PCB-containing and PCB-contaminated equipment and materials had been eliminated from Eskom’s operations, closing a long-standing environmental legacy risk. We received regulatory approval of our PCB Phase-Out Report and were recognised for our contribution towards South Africa meeting its commitments under the Stockholm Convention on Persistent Organic Pollutants (POPs). The successful completion of this programme demonstrates strong execution of a complex hazardous materials management initiative and reflects our commitment to environmental stewardship, regulatory compliance and the proactive management of environmental risks. 25 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Environmental Management continued Coal ash dominates our waste profile and although Red-list avian mortalities declined from 210 in STRENGTHENING COMPLIANCE • Strengthening integration of climate, natural capital beneficiation volumes declined relative to the prior FY2025 to 182 in FY2026, continuing the downward Environmental legal compliance showed a slight and environmental compliance into decision- year, the organisation sustains its pursuit for circularity trend achieved through proactive bird mitigation decline as our challenges remain. Total environmental making, disclosure and long-term capital planning. opportunities through external sales, internal use and measures, which include bird flight diverters, line legal contraventions were not materially different • Continue community focused environmental strategic repositioning of ash as a resource rather markings, hotspot monitoring and collaboration between the past two financial years (FY2025: programmes, particularly air quality offsets and than a disposal burden. A total of 2.91 million tons with conservation partners. The result reflects 65 LCs; FY2026: 67 LCs). Most of these incidents local environmental interventions that support a of ash were beneficiated in FY2026. The decline continual improvement, but it also underscores that were associated with emissions exceedances and just and visible environmental transition. compared with FY2025 (FY2025: 4.1 million tons) avifaunal risk remains material and requires sustained unauthorised water releases, reflecting the continuing reflected market and operational constraints rather intervention and partnerships across our network. strain of ageing infrastructure and the complexity of than a reduced strategic commitment. In response, operating under maintenance and capacity constraints. our Generation Ash Strategy aims to improve market Avifauna mortalities ENVIRONMENTAL MANAGEMENT access, strengthen offtake arrangements, increase In addition, we recorded three legal contraventions REFLECTIONS 258 relating to failure of business systems (FBS). internal use and unlock additional product pathways. • Our environmental performance in FY2026 However, no major environmental prosecutions or 210 reflects meaningful progress in strengthening BIODIVERSITY AND NATURAL CAPITAL fines were recorded during the year, all enforcement 182 stewardship, governance and operational Protecting South Africa’s natural capital requires more actions were addressed by year-end and continued discipline, while acknowledging that material than compliance; it requires active stewardship of bilateral engagement with regulators supported a challenges remain. ecosystems, species, water resources and ecological more co-operative compliance approach. These processes that support both economic development developments reinforce the need for Eskom • Improvements in specific water and human wellbeing. Our environmental footprint to maintain strong governance discipline and consumption, the completion of the extends across power stations, powerline servitudes, further strengthen the proactive management of PCB phase-out programme and the substations, wetlands, rivers, biodiversity-sensitive environmental risk. expansion of air quality offset interventions areas and protected landscapes. Our approach demonstrate our ability to deliver focuses on avoiding environmental impacts where Overall, this past year presents a credible measurable environmental outcomes when FY2024 FY2025 FY2026 focused oversight, operational controls possible, minimising unavoidable impacts, rehabilitating environmental performance narrative. We have disturbed areas and implementing biodiversity, Our nature reserves form a material component not resolved all environmental challenges, but have and clear accountability are aligned. These wetland and water offset interventions where of our biodiversity and land-stewardship approach, demonstrated year-end momentum, stronger outcomes also show a stronger connection residual impacts remain. This approach supports enabling electricity-generation infrastructure governance, improved key metrics and clearer between environmental performance, ESG the protection of ecosystem services, strengthens to operate within natural environments while alignment between environmental performance and governance, community impact and long- climate resilience and contributes to South Africa’s contributing to the South African network of strategic priorities. This is the basis for a stronger term sustainability. biodiversity and sustainable development objectives. conservation areas and supporting Eskom’s objective environmental mandate going into the future. • At the same time, air emissions, legal to minimise ecosystem impacts and enhance contraventions, unauthorised water releases ecosystem services through responsible land FUTURE OUTLOOK and ash beneficiation performance highlight • Sustain and extend the year-end recovery in the continued complexity of operating an management. particulate emissions performance through ageing coal-fired fleet within tightening We had formally declared the Ingula Nature Reserve, stronger abatement equipment reliability, focused regulatory expectations. Majuba Nature Reserve and Koeberg Nature Reserve plant maintenance and closer operational-control • The year therefore reflects both progress through the National Environmental Management integration. and pressure: we have built momentum Protected Areas Act, Act 57 of 2003, with these • Improve Atmospheric Emission Licence compliance in key areas, but sustaining improvement declarations supporting our contribution to protecting across the coal fleet, with continued emphasis will require continued investment in plant South Africa’s biodiversity and long-term natural on retrofit programmes, licence-condition reliability, abatement performance, effluent heritage. The reserves protect distinct ecosystems management and station-specific recovery plans. management, circular economy pathways and species: Ingula safeguards high-altitude grasslands, • Maintain water efficiency gains and eliminate and biodiversity protection. wetlands and escarpment forest supporting threatened unauthorised discharges through infrastructure • Our focus remains on reducing our species such as the White-winged Flufftail, Wattled upgrades, stronger dam and effluent management environmental footprint while positioning Crane and vultures; Majuba was established to and integration of best practice across sites. Eskom as a more environmentally conserve habitat for the threatened Sungazer Lizard; • Expand the practical contribution of circularity by sustainable utility. and Koeberg protects West Coast Strandveld and improving ash beneficiation pathways, increasing dune veld around Koeberg Nuclear Power Station, beneficial internal use and maturing standards and supporting indigenous fauna and abundant birdlife. indicators for circular economy performance. 26 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change Climate Action Eskom: powering the SDGs Through our Climate Change Strategy (2025–2030) we have set the course for decarbonisation and resilience. In FY2026, we intensified our activities to realise these ambitious goals and objectives. This includes compliance with GHG reporting requirements, preparation of updated GHG Mitigation Plans and compliance with legal and taxation requirements. Mitigation includes repowering and repurposing of our older stations and the transition to cleaner technologies. Mitigate climate change and transition to lower-carbon energy As one of South Africa’s largest single source greenhouse gas emitters, we continue to frame climate action within the practical realities of energy security, affordability and a just transition. We remain aligned to South Africa’s climate commitments and developmental priorities by advancing a progressive and holistic decarbonisation pathway supported by the Just Energy Transition (JET) and a diversified generation mix of renewable energy, gas, battery storage, grid investment and repowering and repurposing initiatives. For us, holistic decarbonisation means implementing the JET in a manner that balances climate action with socio-economic development considerations, 4 energy affordability, operational resilience and the long-term sustainability of the electricity sector. The table Climate Change Response and Governance below outlines the key elements of South Africa’s climate change framework and how these provide the policy Our Climate Change Strategy and regulatory context for our climate governance, mitigation, adaptation and just transition response. Carbon Tax and Emerging Climate Policy Requirements Regulatory Developments and Our Response South Africa’s Climate Change Framework Regulatory Updates on Carbon Budget and Mitigation Plans An integrated policy and regulatory architecture guiding national climate action and Eskom’s response Impacts, Risks and Opportunities for Mitigation and Adaptation Climate Change Act, 2024 Climate Scenario Analysis: Building Resilience in an Uncertain Future Overarching legislative framework for South Africa’s climate response Integrated Climate Resilience to Sustain Our Operations Governance Adaptation Mitigation Greenhouse Gas Emissions Reporting and Disclosures Future Outlook Climate governance and Climate risk, resilience and adaptation planning Emissions reduction and Just Climate Change Reflections carbon budget obligations Energy Transition Climate finance Transparency, Monitoring, Reporting and Verification Paris Agreement alignment (MRV) and Greenhouse Gas (GHG) reporting Supporting policies and regulation National Climate Change Response Policy • Nationally Determined Contribution • Long-Term Low Emission Development Strategy • National Adaptation Strategy • Carbon Tax Act • Carbon Offset Regulations • GHG Reporting Regulations • Pollution Prevention Plans Regulations • Integrated Resource Plan • Green Finance Taxonomy • Just Energy Transition Investment Plan • Green Hydrogen Commercialisation Strategy 27 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued CLIMATE CHANGE RESPONSE AND GOVERNANCE OUR CLIMATE CHANGE STRATEGY Climate change remains a strategic priority for Eskom and is integrated into governance, enterprise risk Our climate response is guided by our Climate Change Strategy, corporate objectives and SHEQ Policy and is management, investment planning, operations and sustainability oversight. Oversight is exercised through aligned with South Africa’s National Development Plan, the Integrated Resource Plan, South Africa’s Nationally established Board and executive governance structures, supported by the Board’s collective skills, experience Determined Contribution under the Paris Agreement, the Climate Change Act and evolving climate disclosure and access to specialist expertise in climate-related matters. This approach enables us to balance our mandate to expectations. International best practice increasingly requires companies to explain how climate-related risks provide secure and affordable electricity with the need to support South Africa’s transition to a lower-carbon and and opportunities are governed, reflected in strategy, managed through risk processes and monitored through climate-resilient economy. metrics and targets. We are progressively strengthening our disclosures simultaneously addressing the operational realities of the South African electricity system. Our climate change response is supported by a maturing governance framework that enables coordinated decision-making, monitoring and reporting across relevant divisions. During the year, we continued to OUR STRATEGIC CLIMATE PRIORITIES strengthen the integration of climate considerations into strategic planning, risk management and operational Grid enablement: processes, including ongoing work to align internal actions with national climate policy developments, regulatory Expand and modernise the transmission and distribution networks to enable new generation requirements and our long-term decarbonisation pathway. connections and system flexibility. This effort is undertaken within the context of Eskom’s broader sustainability commitments and our role in Lower-carbon transition: enabling a just energy transition. Strengthening climate governance supports improved accountability, enhances Support phased emissions reduction through repowering, repurposing, renewable integration and transparency in sustainability disclosures and enables more consistent tracking of progress against climate-related operational efficiency. priorities, risks and opportunities. Financial resilience: Assess carbon pricing, carbon budgets, trade measures and funding implications for Eskom’s long-term Our Climate Governance Approach sustainability. Governance Strategy Risk management Metrics and disclosure Climate resilience: Integrate physical climate risks, including water and extreme weather exposure, into planning and Board and executive Climate considerations Physical and transition Improved emissions, investment decisions. oversight of material (including opportunities) risks assessed through carbon tax, carbon climate-related risks, embedded in long-term enterprise risk, regulatory, budget, resilience and Just Energy Transition: opportunities and planning, capital allocation, operational and financial transition disclosures are Balance decarbonisation with security of supply, affordability, socio-economic development and transition priorities. grid expansion, planning processes. aligned to evolving stakeholder inclusivity. repowering and reporting expectations. repurposing and JET implementation. CARBON TAX AND EMERGING CLIMATE POLICY REQUIREMENTS We operate in an evolving climate policy and carbon pricing environment. Carbon tax remains a material climate-related financial consideration due to the emissions profile of the generation fleet and our mandate to maintain reliable electricity supply. We support South Africa’s climate commitments and continue to integrate carbon tax, carbon budgets and mitigation planning into our financial planning, risk management and transition implementation. Eskom will be impacted by the full carbon tax liability from 2031. Carbon budgets are expected to be implemented as soon as 2027. South Africa’s climate regulatory framework continued to evolve through the Climate Change Act, 2024, supported by the draft National Greenhouse Gas Carbon Budget and Mitigation Plan Regulations and Technical Guidelines. The draft framework proposes mandatory carbon budget allocation, mitigation plan implementation, progress reporting, verification, compliance assessment and enforcement for significant emitters. Eskom submitted comments to the Department of Forestry, Fisheries and the Environment (DFFE), emphasising the need for a practical approach that balances transparency and comprehensiveness with realistic uncertainties and flexibility. 28 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued REGULATORY DEVELOPMENTS AND OUR RESPONSE IMPACTS, RISKS AND OPPORTUNITIES FOR MITIGATION AND ADAPTATION Climate change has the potential to impact our operations, assets, workforce, supply chains and customers, while also creating opportunities to strengthen resilience, improve efficiency and support the energy transition. The key climate-related impacts, risks and opportunities that are considered in our strategic Climate Change Act Carbon budgets and mitigation plans planning and risk management processes. Provides the legislative basis for South Africa’s climate Draft requirements for allocation, implementation, response, including the transition of a low-carbon and annual progress reporting and enforcement. climate-resilient economy. We are aligning our Assessment of operational, financial and compliance internal governance, planning and reporting with the implications and development of a proposed carbon Act’s requirements and timelines. budget trajectory aligned with system planning. Carbon tax SF6 emissions Potential interactions between carbon tax and carbon Eskom pays carbon tax on emissions from activities budget compliance may affect future financial classified under IPCC categories 1A1a, 1A3 and exposure. We continue to evaluate carbon tax 2G1b, with deductions applied to category 1A1a trajectories and advocate for policies that support where applicable. Category 2G1b covers sulphur emissions reduction while safeguarding affordability hexafluoride (SF6) emissions from transmission and and electricity security. distribution activities. We are assessing technically feasible and commercially viable alternatives to reduce reliance on SF6 -containing electrical equipment over time. REGULATORY UPDATE ON CARBON BUDGETS AND MITIGATION PLANS Once finalised, the draft carbon budget and mitigation plan framework is expected to provide greater clarity on our future compliance obligations, emissions trajectory, reporting requirements and climate-related financial exposure. Our engagement with policymakers is focused on ensuring that the framework caters for the regulatory requirements and complexity of the electricity sector, including the need to maintain system reliability, support economic activity and enable a phased, orderly and just transition. We will continue to monitor policy developments, assess potential carbon tax and carbon budget impacts, strengthen internal data and assurance processes and align mitigation planning with South Africa’s energy policy and climate commitments. The objective is to support national climate ambition while ensuring a sustainable electricity transition that protects security of supply, customer affordability and socio-economic development. Eskom’s climate governance and regulatory response are anchored in balancing decarbonisation, resilience and compliance with its core electricity mandate. This requires credible transition planning, practical policy implementation, strengthened disclosure and continued engagement with government, customers, investors and development partners. 29 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued A value chain view of physical impacts, transition risks and resilience opportunities Key climate value chain aspects E S G Physical resilience Transition readiness Value creation Extreme weather and infrastructure Carbon tax, financing and disclosure Cleaner energy resilience planning disruption pressure and skills NEGATIVE IMPACTS RISKS OPPORTUNITIES Physical disruption Supplier and logistics disruption Cleaner energy technologies Adaptation planning 1 1 1 2 Climate events may disrupt supplier Cleaner technologies and Integrating climate strategy, risk and Acute and chronic climate risks, operations, transport networks and transmission infrastructure support disaster management into adaptation including floods, storms, heatwaves logistics systems, increasing restoration emissions reduction and sustainable plans strengthens resilience and and droughts, may disrupt generation, times, delays and recovery costs. economic development. adaptive capacity. transmission and distribution infrastructure, affecting security of Short-Medium term Upstream Short-Long term Own Ops & Downstream Short-Long term Own Operations supply and operational performance. Regulatory and transition pressure Sector transformation Research and innovation Short-Medium term Own Ops & Downstream 2 3 4 Carbon tax, CBAM, disclosure Electricity-sector transformation Low-carbon technologies, CCUS requirements and decarbonisation through supply-side diversification and grid-modernisation initiatives policies may increase compliance supports South Africa’s long-term can reduce emissions and support GHG emissions profile obligations and financing pressures. GHG trajectory. net-zero ambition. 2 Generation contributes materially to Mid-Long term Upstream & Own Ops Mid term Own Operations Medium-Long term Own Operations South Africa’s GHG emissions profile through scope 1 and 2 emissions associated with electricity generation Reputation and resilience expectations Skills and capacity Just transition benefits and operations. 3 5 6 Just transition objectives create Stakeholders expect credible Climate-related training and capacity decarbonisation and climate resilience opportunities for resilience, building improve awareness, technical socio-economic development, responses, with reputational risks where capability and preparedness. infrastructure investment and progress is insufficient. sustainable energy transition. Short-Long term Own Operations Medium term Own Ops & Downstream Medium-Long term Own Operations Medium-Long term Own Ops & Downstream VALUE-CHAIN RESPONSE AND RESILIENCE LEVERS Adaptation plans Disaster management Transmission development Cleaner energy GHG reduction Climate skills JET objectives Research and innovation 30 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued Climate change presents transition and physical risks that may affect our operations, financial position and long- Eskom is responding through a balanced and PHYSICAL CLIMATE RISKS term value creation. Understanding these risks helps us strengthen resilience, guide capital allocation and support diversified energy transition pathway that supports Physical climate risks, including more frequent reliable electricity delivery under future climate scenarios. security of supply while reducing carbon emissions. and severe storms, floods, wildfires, extreme During FY2025, we initiated the establishment temperatures, water stress and shifting rainfall TRANSITIONAL CLIMATE RISKS of Eskom Green as a separate renewable energy patterns, may affect Eskom’s generation, transmission Transitional climate risks arise from the shift to a lower-carbon economy and include regulatory, technology, business, supporting the organisation’s transition into and distribution infrastructure, operational reliability, capital and financial market risks. Evolving climate-related regulations, carbon pricing and border adjustment a sustainable and competitive energy company. Eskom supply chains and surrounding communities. These mechanisms, mandatory disclosure requirements and decarbonisation policies may increase compliance has an executable initial pipeline of at least 2GW of risks are managed through integrated risk, resilience, obligations, operating costs and investment requirements. At the same time, market and investor expectations on clean energy projects planned for execution during adaptation and disaster management processes, decarbonisation and sustainability performance may influence access to funding, financing costs and stakeholder 2026 and a broader pipeline of more than 32GW by supported by divisional and external coordination, confidence. 2040 to diversify the energy mix through renewables, water management initiatives such as the Integrated energy storage, pumped hydro, gas, nuclear and Vaal River Scheme and infrastructure resilience CLIMATE RISK RESPONSE existing coal assets. measures that strengthen preparedness, response capability and long-term operational continuity. To balance the transition with system stability, we continue to improve the environmental performance, CLIMATE SCENARIO ANALYSIS: BUILDING flexibility and reliability of our coal fleet through the RESILIENCE IN AN UNCERTAIN FUTURE clean coal programme, which focuses on improved The climate scenario analysis below provides a Balanced combustion, emissions control, coal by-product forward-looking view of how different warming transition management, energy efficiency, operational flexibility pathways may affect our operations, assets and long- response and asset integrity. These measures support South term resilience. Building on earlier CSIR-supported Africa’s climate commitments while enabling studies using the RCP 4.5 and RCP 8.5 scenarios responsible JET and positive socio-economic of the IPCC and more recent CMIP6-based work outcomes in affected communities. incorporating the SSP3-7.0 pathway, the assessment Transition Grid helps inform divisional adaptation plans, disaster risk risk drivers infrastructure The Transmission Development Plan (TDP) is a key management, infrastructure planning and investment enablement enabler of this transition, prioritising grid expansion, Climate strengthening and connection capacity to unlock decisions under uncertainty. RCP 8.5 seems increasingly unlikely to materialise. change is a renewable energy resources in high-potential regions, supporting new generation projects and improving material long-term system resilience and security of supply. business risk Eskom’s distribution business is central to enabling clean energy transition by strengthening and modernising the grid to integrate renewable generation, support Independent Power Producers (IPPs) and accommodate customer-owned Resilience Physical distributed energy resources such as solar PV and battery systems. Key actions include commissioning and risk climate risk microgrids, implementing digital technologies, management improving operations and progressing the conversion of Eskom’s fleet to electric vehicles supported by System charging infrastructure. stability during transition Strategic outcome: Resilient infrastructure, reliable supply, sustainable investment and a responsible Just Energy Transition 31 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued Climate Scenario Analysis: Future Warming Pathways Scenario analysis used to support climate-resilient planning, adaptation and investment decisions Planning context TEMPERATURE AND HEATWAVES • Rising temperatures and more hot days • Expansion of fire-prone conditions Scenario analysis does not predict a single outcome; it supports decision-making under uncertainty by testing warming pathways, and heatwaves under all scenarios • Higher risk around transmission and socio-economic signals and planning horizons. • Higher temperatures increase operational distribution assets stress and equipment exposure Warming by Scenario pathway 2100 Socio-economic signal Planning horizons 1. Moderate transition CO2 peaks around 2050 and then Mid future: 2021–2050 RAINFALL, FLOODING COMPOUND AND (RCP 4.5/SSP2–4.5) 2.7°C declines, reflecting a more managed transition pathway Far future: 2071–2099 • Heavier rainfall events expected CASCADING HAZARDS • Multiple hazards occurring • Increased flooding risk in several regions • Rainfall patterns remain uncertain and simultaneously become more likely 2. Regional rivalry (SSP3–7.0) CO2 doubles by 2100, indicating higher Near future: 2021–2040 spatially variable • Greater disruption and recovery 3.6°C transition pressure and more severe physical climate impacts Mid future: 2041–2060 Far future: 2081–2100 • Infrastructure and logistics disruption challenges 3. Fossil-fuelled development CO2 continues increasing through 2100, Mid future: 2021–2050 DROUGHT AND WATER (RCP 8.5/SSP5–8.5) 4.4°C representing the highest warming and risk pathway Far future: 2071–2099 RESOURCES Implication: resilience planning • More frequent and severe droughts must consider individual hazards • Growing pressure on strategic water Southern Africa is expected to warm faster than the global average, strengthening the need for climate-resilient planning, resources and combined, cascading adaptation and investment decisions. • Increased dependence on resilient water disruptions management systems and transfer schemes KEY CLIMATE SIGNALS ACROSS SCENARIOS Physical climate risks increase costs, operational disruptions and insurance exposure with sharper financial pressure under higher warming pathways. INTEGRATED CLIMATE RESILIENCE TO SUSTAIN OUR OPERATIONS We manage physical climate risks by integrating adaptation and resilience into our Lower Warming Pathway Higher Warming Pathway operations, planning and key business processes. This holistic approach spans the full value Business implications chain, from generation sites, transmission grids and distribution clusters to buildings, while also considering risks such as water & coal resources and ecosystem change, as well as More manageable operating exposure More severe and widespread disruption impacts on transport and supply chains that are critical to disaster response. • Operational disruptions are more localised • More frequent and intense hazards increase and easier to plan for outage and restoration pressure We are moving from foundational adaptation planning to structured implementation by • Asset stress increase, but adaptation actions can be • Greater exposure across assets, logistics and supply institutionalising climate resilience across governance, risk management, data systems phased into normal planning cycles chains complicates recovery and disaster preparedness. Practical responses include biodiversity assessments, erosion • Improved preparedness supports more predictable • Planning needs shift from incremental resilience to and water management, tower & foundation strengthening, incorporating climate recovery and service continuity accelerated adaptation risk-based designs in new projects and continued alignment with the Transmission Development Plan and Just Energy Transition framework to support renewable Financial implications integration, network resilience and long-term energy security. System reliability is closely monitored through SAIFI and SAIDI indices, with refurbishment and maintenance Lower but rising cost pressure Higher financial exposure programmes strengthening network resilience and supporting the just energy transition. • Moderate increase in maintenance, adaptation • Higher outage, repair and recovery costs Complementing these efforts, Eskom’s commercial building portfolio is being and resilience investment requirements under more severe climate conditions transformed through the Eskom Real Estate framework into climate-resilient, low- • Lower probability of widespread revenue disruption • Increased revenue disruption and potential pressure impact assets by removing harmful materials, embedding energy- and water-efficient and emergency restoration costs on insurance and financing assumptions systems, improving supply chain durability and deploying digital monitoring to support • Capital prioritisation can be sequenced with asset-life • Accelerated asset degradation may require earlier transparent, data-driven sustainability performance. and risk-reduction planning capital replacement or reinforcement Cross-cutting impacts: Outages Revenue disruptions Asset performance 32 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued WATER REDUCTION MEASURES SUPPORTING CLIMATE RESILIENCE Water stewardship levers, implementation actions and climate resilience benefits KEY WATER MANAGEMENT ASPECTS Reduce freshwater dependency Improve circularity Strengthen site resilience Lower raw-water abstraction through efficiency, Reuse treated effluent and recover water Use water and flood resilience measures to reuse and technology choices within operational systems support operational continuity WATER MANAGEMENT LEVER WHAT WE ARE DOING CLIMATE RESILIENCE BENEFIT Diversifying the energy mix to include renewables, gas, nuclear and Reduces the long-term water intensity of electricity Diversified energy mix clean coal technologies. generation. Implementing Zero Liquid Effluent Discharge and reusing treated Reduces freshwater abstraction and improves circular Water recycling and reuse effluent for cooling water makeup and other processes. water use. Deploying dry cooling and energy-efficient technologies to reduce Lowers dependency on freshwater sources and Dry cooling and efficiency raw water abstraction volumes. supports reuse. Using advanced treatment technologies, including reverse osmosis, Enhances operational water performance and reduces Advanced treatment technologies to enable effluent reuse and reduce raw water intake. avoidable losses. Improving cooling tower maintenance and operating practices Reduces water losses and supports responsible water Optimised cooling tower operations to minimise evaporation losses. stewardship. Identifying and repairing leaks to reduce wastage and improve Lowers dependency on freshwater sources and Leak detection and repair efficiency. supports reuse. Implementing water management plans, wetland management Strengthens site-level climate resilience and forms Site-based water and flood resilience initiatives and flood defence measures at operational sites. part of broader water- and flood-related risk response. Strategic takeaway: water efficiency, reuse and site resilience reduce exposure to water scarcity and strengthen operational climate resilience. 33 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued BUILDING RESILIENCE TO EXTREME RAINFALL Our power stations are increasingly exposed to physical climate risks associated with extreme rainfall and severe thunderstorms. These events pose potential disruptions to operations, including flooding, impacts on critical infrastructure such as ash dams, constraints on coal handling and transport and broader supply chain interruptions. RESILIENCE INSIGHT Severe rainfall events can trigger cascading operational impacts. A resilience pathway connects the hazard signal to operational consequences and practical response measures needed to protect continuity. CLIMATE HAZARD KEY RISK DRIVERS RESILIENCE RESPONSE Business Alternative Stormwater Flooding & dam Ash dam continuity water supply drainage overflows instability Extreme rainfall and severe storms Water reuse Ash dam Strategic systems monitoring stockpiles High rainfall and storm events Supply-chain Transport access may affect operational sites, disruptions limitations water systems, coal handling and access routes. Logistics Stakeholder Rain readiness optimisation partnerships plans VALUE-CHAIN RESPONSE AND RESILIENCE LEVERS Operational downtime Wet coal handling Recovery delays Infrastructure stress Site access constraints Resilience outcome: protect operational continuity through infrastructure protection, preparedness planning, strategic resources and supply-chain resilience. 34 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued RISING INSURANCE AND FINANCIAL These trends have important implications for our EXPOSURE financial position: CLIMATE LOSS HOTSPOTS Climate change increases our exposure to financial • Increased insurance premiums and deductibles, pressure and insurance-related challenges. Under reflecting rising climate risk Most affected provinces by number of weather-related claims over five years lower warming scenarios, cost increases are expected • Reduced availability and scope of insurance cover to be more gradual and manageable. However, under for high-risk assets higher warming scenarios, these pressures are likely • Greater levels of uninsured or self-retained losses Eastern Cape, KwaZulu Natal to intensify, with higher capital and operational costs, 18% • Increased volatility in earnings due to exposure to together account for 82% of increased risk of asset failures and power supply weather-related claims by count. large climate-related loss events disruptions, constrained insurance capacity and greater reliance on self-insurance mechanisms. This Weather-related claims share over time highlights the importance of proactive adaptation and 43% resilience investments and enhanced risk management 22.58% 20.43% strategies to manage these long-term financial risks. 18.06% 2 046 Historical insurance data over the last five years 19.11% claims over the 39% shows an upward trend in both the frequency and severity of weather-related claims, with weather- last five years related losses increasing as a proportion of total claims. 11.62% The increasing value of claims, particularly for claims exceeding deductibles points to the severity of losses. 2021 2022 2023 2024 2025 Eastern Cape Other provinces KwaZulu Natal Number of weather-related claims 255 257 252 Despite annual variability, weather-related claims 889 796 18% have remained significantly above 2021 levels, claims claims of weather-related claims 223 228 221 indicating an elevated risk environment. 203 169 Weather-related insurance claims over the past 147 five years show a clear geographic concentration of climate-related impacts and losses, highlighting the 91 importance of prioritising resilience and adaptation measures in the provinces most exposed to weather- related risks. 2021 2022 2023 2024 2025 Number of weather-related claims by year of loss (assets above deductible) Number of weather-related claims by year of loss (assets below deductible) 35 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued GREENHOUSE GAS EMISSIONS REPORTING AND DISCLOSURES Carbon Footprint – 2025 calendar year Scope 1 emissions (tCO2e) Scope 2 emissions (tCO2e) Scope 3 emissions (tCO2e) Scope 1 2023 184 134 349 2023 131 899 2023 4 505 188 2024 191 808 802 2024 55 554 2024 3 075 553 2025 188 335 030 2025 50 877 2025 2 372 803 Since 2019, we quantified our carbon footprint from various operational activities. The results provide valuable insights into GHG emissions management, support transparency and strengthen climate risk management. We continue to improve data credibility and reporting efficiency. From 2025, to support the collation of nationally accurate data, we are providing the regulatory reporting of Scope 1 data from power stations using the Tier 3 methodology, which requires site-specific source data and enables more accurate emissions quantification. This approach reinforces our environmental duty of care and aligns our reporting with industry peers. Our GHG emissions have improved since the 2019 base year, supporting alignment with our national NDC commitments, NDP objectives, net-zero aspirations and our commitment to achieving the UNFCCC’s objectives. Emissions monitoring has enabled our ability to plan for the energy transition and optimise emission reduction while maintaining energy security. CARBON REPORTING AND DISCLOSURE HIGHLIGHTS Annually report Implementation Decreased GHG Improved GHG emissions of Tier 3 emissions from base governance to DFFE as per methodology for year (2019) and emissions regulations scope 1: stationary management combustion Improved climate- Improved CDP Alignment with GRI Aspirations to fully related risk score from D to and TCFD align to IFRS S1 management C for climate and & S2, TNFD and maintained C for King V water 36 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Responding to Climate Change continued FUTURE OUTLOOK Our strategic focus is progressively shifting from climate preparedness, towards measurable resilience performance and implementation. Our key priorities for the future include: • Deliver on the Just Energy Transition. • Strengthen climate governance, reporting and disclosure. • Prioritise asset level adaptation and resilience projects informed by climate risk assessments. • Improve the quantification of climate-related financial impacts and avoided losses. • Embed measurable resilience indicators, including infrastructure recovery time, asset-hardening measures and avoided disruption costs. Industry, Innovation and Infrastructure Eskom: powering the SDGs In expanding resilient infrastructure, we installed 270.8km of new high-voltage transmission lines (toward a target of 423km) and major generation projects came online – (Kusile Unit 6 and the return of Medupi Unit 4) – improving base-load capacity and grid stability. We signed an MoU with the Korea Electric Power Corporation (KEPCO) to promote research and innovation and hosted Korean delegates to explore innovative green hydrogen opportunities. Modernising energy infrastructure and fostering innovation for development CLIMATE CHANGE REFLECTIONS • Eskom continues to advance a pragmatic and just energy transition that supports South Africa’s climate commitments while maintaining energy security, affordability and socio-economic development. • Climate Change is now more deeply embedded within governance, risk management, strategic planning and investment processes, supported by enhanced oversight, disclosure and alignment with evolving regulatory requirements. • The Climate Change Act, carbon budget framework and carbon tax regime are driving greater focus on compliance, transition planning and climate-related financial risk management, requiring ongoing engagement with policymakers and stakeholders. • Progress on grid expansion, renewable energy deployment, repowering and repurposing initiatives and the launch of Eskom Green reflects a deliberate effort to diversify the energy mix while maintaining a reliable electricity supply. • Climate adaptation is increasingly being institutionalised across the business, with greater emphasis on infrastructure resilience, disaster preparedness, water security and climate informed investment decisions. • Rising weather-related losses, insurance costs and physical risk exposure reinforce the need for proactive adaptation investments, stronger resilience measures and improved quantification of climate-related financial impacts. • Continued improvements in emissions reporting, climate disclosures, scenario analysis, innovation and resilience metrics position Eskom to better demonstrate progress, support informed decision-making and contribute to South Africa’s net-zero transition. 37 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Enabling a Resilient Low-Carbon Energy Future Affordable and Clean Energy Eskom: powering the SDGs We are committed to resilient low-carbon energy future. This is being done through the accelerated transmission expansion, deployment of battery energy storage systems (commercial operation achieved at sites including Hex, Pongola and Elandskop), and implementation of its Just Energy Transition and renewable energy programmes. These initiatives and the other actions included in this section are directed towards creating the infrastructure, flexibility and clean generation capacity required for a secure and sustainable electricity system. Enabling a resilient low-carbon energy future. Our role in enabling South Africa’s transition to a nuclear safety oversight, life-extension investment resilient, low-carbon future is central to our long-term and operational excellence, Koeberg provides sustainability, national development mandate and dependable baseload capacity while avoiding material 5 responsibility to current and future generations. As emissions that would otherwise arise from higher- the country’s primary electricity utility, we recognise carbon generation sources. Its role complements the that our climate response must balance the urgent development of renewable energy, battery storage, need to reduce greenhouse gas emissions with the grid expansion and emerging clean-energy platforms equally important imperatives of energy security, such as Eskom Green, reinforcing the importance of a Koeberg – Our Sustainable Success affordability, economic development and social diversified and technology-balanced electricity mix. Eskom Green and Renewable Energy Delivery inclusion. Our approach is therefore grounded in a just, orderly and practical transition that supports Enabling a resilient low-carbon future also requires Operational Decarbonisation and Cleaner Mobility strengthening the systems, infrastructure and South Africa’s climate commitments while maintaining Investing in Innovation the reliability and resilience of the electricity system. capabilities that will support the next phase of South Africa’s energy transition. This includes modernising During FY2026, we continued to strengthen and expanding the grid, accelerating renewable energy the foundations for this transition by integrating delivery, investing in innovation, improving operational climate change considerations into governance, efficiency, advancing cleaner mobility, and embedding strategy, risk management, investment planning, climate resilience into asset planning and disaster operations and reporting. This includes advancing preparedness. At the same time, our transition our decarbonisation pathway, improving climate- must remain socially just by supporting workers, related disclosures, strengthening resilience and communities and local economies affected by changes adaptation planning, expanding renewable energy in the energy landscape. and storage opportunities, and preserving strategic low-carbon assets such as Koeberg Nuclear Power We are contributing to South Africa’s net-zero Station. Together, these actions demonstrate how transition and our actions to build a more resilient we are moving from climate preparedness towards electricity system in the face of climate uncertainty. implementation, delivery and measurable resilience We are responding to climate-related risks and outcomes. opportunities, strengthening governance and disclosure, advancing mitigation and adaptation, Koeberg’s continued operation represents a significant and investing in the technologies, partnerships and contribution to South Africa’s low-carbon electricity capabilities required to support a secure, affordable supply and energy security. Through disciplined and lower-carbon energy future. 38 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Enabling a Resilient Low-Carbon Energy Future continued KOEBERG – OUR SUSTAINABLE SUCCESS The success story is reflected in both reliability and ESKOM GREEN AND RENEWABLE ENERGY DELIVERY Koeberg Power Station demonstrates how decarbonisation impact. Unit 1’s return to the grid disciplined asset stewardship can convert existing restored 930MW of reliable supply, while Unit 2 infrastructure into long-term sustainability value. achieved 365 consecutive days of operation by Affordable and Clean Energy Eskom: powering the SDGs Through rigorous nuclear safety oversight, targeted 9 March 2026 at a 99.4% Energy Availability Factor, life-extension investment and continued operational delivering about 946MW to the national grid. This excellence, Koeberg has been safely repositioned performance provided an estimated 8.2TWh of Our Generation availability (EAF) rose to 65.16% by March 2026 and we delivered continuous electricity to low-carbon electricity over the period, equivalent to households and industries, enhancing energy access and affordability. As we transition to cleaner energy, the as a strategic low-carbon asset for Eskom and rollout of 8 million smart meters and advanced metering infrastructure will reduce losses and enable distributed South Africa. Between 1 April 2025 and 31 March roughly 7.8MtCO2e of grid-average emissions avoided renewable generation. Solar PV electrification (Madimbo and Mavhete in Limpopo) includes a 500kW solar PV 2026, this was evidenced by regulatory approval for when benchmarked against South Africa’s 2023 plant with a battery storage system that accommodates over 1 933 households. continued operation: the National Nuclear Regulator domestic grid factor of 0.942tCO2e/MWh. Koeberg approved Koeberg Unit 2’s 20-year life extension to also provides a stable local electricity anchor for the 9 November 2045, complementing Unit 1’s extension Western Cape, strengthens national grid resilience, Expanding stable and cleaner energy supply for all to 21 July 2044. Together, the two units secure supports renewable integration, reduces reliance on approximately 1 860MW of dependable baseload distant coal-based supply and sustains scarce nuclear capacity while preserving a critical national clean- engineering skills. Koeberg stands as a practical energy asset. example of our sustainable infrastructure renewal, supporting energy security and advancing South Africa’s decarbonisation pathway. Enkovukeni Isimangaliso Wetland Park Isimangaliso M arine Reserve Alongside our repowering, repurposing and social This complements our broader approach by pairing development initiatives, we continued to strengthen cleaner energy delivery with the socio-economic, the institutional platforms needed to deliver cleaner skills and community considerations needed for a energy at scale. A key milestone was the formal responsible transition. launch of Eskom Green, which provides a dedicated mechanism to accelerate renewable energy Project development progressed across solar PV, development, support customer decarbonisation and battery energy storage and small-scale renewable enable more focused participation in South Africa’s energy change management initiatives. These evolving electricity market. include the Lethabo 75MWp Solar PV project, the Komati 72MWp Solar PV project and the 600MWh As a transition enabler, Eskom Green strengthens our Battery Energy Storage System projects approaching ability to develop, own and operate renewable energy execution phase. Small-scale solar PV initiatives at and storage assets in a reformed electricity sector, Arnot, Duvha, Majuba and Tutuka are supporting a while enabling partnerships and investment that structured transition by familiarising power station support implementation at scale. teams with renewable energy operations and building capability in design. 39 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Enabling a Resilient Low-Carbon Energy Future continued OFFICIAL LAUNCH OF ESKOM GREEN – support large power users in achieving their Eskom Green will initially focus on large projects, including approximately 6GW of carbon- ENABLING THE NEXT PHASE OF SOUTH decarbonisation and energy transition objectives. industrial customers in sectors such as mining free electricity available up to 2030 and a further AFRICA’S ENERGY TRANSITION The business is designed to provide agile decision- and manufacturing through renewable energy pipeline of up to 32GW by 2040, supporting making, partnership-based delivery models, access solutions, direct bilateral power purchase security of supply, customer decarbonisation and We officially launched Eskom Green on to diverse sources of capital and bankable project agreements and transparent pricing structures that South Africa’s broader transition to a lower-carbon 09 June 2026 as a dedicated utility-scale renewable structures, while drawing on Eskom’s existing distinguish energy costs from regulated network electricity future. energy business to accelerate the development generation expertise, infrastructure footprint and and wheeling charges. The platform will coordinate of renewable energy and storage projects and system knowledge. a phased pipeline of renewable energy and storage 40 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Enabling a Resilient Low-Carbon Energy Future continued OPERATIONAL DECARBONISATION AND CLEANER MOBILITY INTRODUCING ELECTRIC VEHICLES INTO OUR OPERATIONS In September 2025, we introduced our first 20 electric vehicles as part of our efforts to reduce operational emissions and demonstrate practical cleaner mobility solutions within our own fleet. This initiative complements our decarbonisation journey by showing how lower-carbon technologies can be applied across our operations, not only in electricity generation. The deployment provides an opportunity to build internal experience with electric vehicle performance, charging requirements and operational integration. It also supports a gradual shift towards cleaner fleet management, helping us test practical applications, strengthen readiness for future scaling and contribute to a broader culture of innovation and emissions reduction across the business. 41 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Enabling a Resilient Low-Carbon Energy Future continued INVESTING IN INNOVATION Our research and innovation efforts reflect a targeted investment approach supporting key sustainability priorities. Investment is concentrated in areas that enable long-term decarbonisation, improve operational efficiency and reduce environmental risk. Significant investment in technologies such as low fuel ignitors and biomass co-firing reflects a focus on improving current operations, while projects such as carbon capture and energy storage represent strategic investments in future energy systems. This balanced portfolio ensures that Eskom is addressing both immediate operational challenges and long-term transition risks. Underpinning all this is our commitment to knowledge transfer and human capital development – investing in youth and skills programmes such as Eskom Power Engineering Programme (EPEP) and Tertiary Education Support Programme (TESP) to build the next generation of energy professionals. Net Zero Transition Operational Efficiency & Cost Reduction CCUS, Biomass Co-Firing, Low Fuel Ignitors | R285m HELE | R76.4m Reduces fuel oil use, costs Supports emissions reduction and start-up emissions. and future carbon management RT&D innovation portfolio Environmental Balancing immediate operational Grid Modernisation Performance & Circular improvement with future-focused & Energy Transition Economy sustainability innovation. BESS and LDES | R19.8m Ash Utilisation, Ash Beneficiation, Air Quality Monitoring | R72.9m Enables storage, flexibility and renewable integration. Turns waste and data into environmental value. Resilience & Biodiversity Protection Animal Interactions Research | R1.4.m Reduces biodiversity impacts and improves reliability. LOW CARBON ENERGY FUTURE REFLECTIONS Together, these initiatives demonstrate how we are translating our cleaner energy ambitions into practical delivery. By combining renewable energy development, repowering and repurposing, skills development, local economic participation and dedicated platforms such as Eskom Green, we are building the capabilities needed to support a responsible transition, strengthen energy security and contribute to South Africa’s lower-carbon electricity future. 42 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint E S G KEY SOCIAL INDICATORS RISKS • Key governance risks: Employee and • Socio-economic pressures: Rising municipal contractor fatalities, mental health pressures, debt, affordability constraints and electricity municipal debt, electricity theft, illegal theft threaten financial sustainability and connections, affordability challenges and Just equitable service delivery, while JET-related Energy Transition (JET) impacts. risks affect workers and coal-dependent • Critical concerns: Seven work-related fatalities communities. highlight the need for stronger safety leadership, • Mitigation actions: Strengthen safety contractor management and accountability. leadership, expand mental health support, Mental health, stress and burnout have enhance community engagement, accelerate emerged as Priority 1 risks affecting wellbeing, workforce transition programs and implement 6 productivity and organisational resilience. integrated revenue recovery initiatives. VALUE-CREATION/OPPORTUNITIES Human Capital • Key social value creators: Energy access, Basic Electricity programmes, while investing Health and Wellness human capital development, skills formation, R153.25 million in community initiatives Organisational Effectiveness socio-economic transformation, stakeholder benefiting approximately 1.51 million people. engagement and community development. • Economic inclusion: Expanded supplier, Socio-Economic Development and Transformation • Workforce and skills: Expanded workforce, localisation and enterprise development Procurement improved retention, invested in future skills, programmes, creating opportunities for small Our Customers awarded 196 bursaries and advanced training in youth-owned and women-owned businesses. Social Reflections digital technologies, AI and the energy transition. • Future value: Advance people-centred JET • Community impact: Supported vulnerable initiatives, workforce reskilling, economic inclusion households through electrification and Free and sustainable community development. As South Africa navigates a period of economic reform, infrastructure renewal and energy transition, social sustainability has become increasingly important. The country’s development agenda is intrinsically linked to reliable, affordable and sustainable electricity. As the country’s primary electricity utility, Eskom’s social impact extends far beyond the supply of power. Our contribution influences livelihoods, economic participation, industrial growth, service delivery, education, healthcare, community resilience and the overall quality of life of millions of South Africans. Through our operations, investments, workforce, supply chain and stakeholder partnerships, we contribute meaningfully to national development priorities, support inclusive economic growth and help create the conditions necessary for a just and sustainable future. Persistent challenges such as unemployment, poverty, inequality, limited economic opportunities and skills shortages continue to affect many of the communities in which we operate. At the same time, evolving workforce expectations, changing skills requirements and the transition to a lower-carbon economy require proactive measures to ensure that no stakeholder group is left behind. 43 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Sustainable Cities and Communities Eskom: powering the SDGs Overloading and equipment failure in township networks due to electricity theft and illegal connections are ongoing challenges. To avoid this, Eskom implements load reduction. We are deploying smart metering technology and real-time monitoring systems to address this challenge. Upgrading distribution infrastructure (smart meters, tamper-proof technology) and community engagement programmes are improving the safety and reliability of electricity informal settlements and urban areas, thus supporting safe and sustainable communities. Resilient and sustainable energy services for communities The social dimension of sustainability remains central to Eskom’s purpose and long-term value creation. It reflects our commitment to balancing operational performance with positive outcomes for employees, customers, suppliers, communities and society. In FY2026, we have strengthened our approach to social sustainability by embedding social considerations across strategy, governance, risk management and performance, recognising that sustainable business success depends on the wellbeing and resilience of the people and communities we serve. This approach aligns with the social pillar of our ESG Framework, which focuses on customer wellbeing and energy access, occupational health and safety, human capital development, diversity and inclusion, supplier development, local economic participation and corporate social investment, this becomes especially relevant as we implement our JET. 44 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Powering Progress – Enabling Sustainable Development Our social contribution is closely aligned with the National Development Plan (NDP) 2030, the United Nations Sustainable Development Goals (SDGs) and South Africa’s Just Energy Transition ambitions Building social foundations for sustainable economic growth and a better life for all JUST ENERGY TRANSITION • Supporting a low-carbon, climate-resilient future. • Creating inclusive opportunities and livelihoods. • Building resilient communities and enabling a sustainable energy future for all. Through these contributions, Eskom supports national development outcomes while strengthening the social foundations required for sustainable economic growth. Empowering Investing in education Improving health Promoting equality Driving economic participation Building partnerships for communities and skills and wellbeing and inclusion and innovation lasting impact 45 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Our JET narrative reinforces that decarbonisation Number of employees SKILLS DEVELOPMENT AND TRAINING must be implemented in a way that supports Skills development is a critical enabler of our transition to a cleaner, more modern and digitally enabled energy workers, communities and local economies, while 42 030 43 274 system. As we evolve our generation portfolio and operating model, targeted investment in learning is essential to maintaining security of supply and advancing South 39 601 40 625 ensure that the workforce is equipped to support emerging technologies, increased system complexity and new Africa’s lower-carbon future. decision‑making requirements, while continuing to deliver safe and reliable operations. We are committed to transforming social investment into measurable social impact. Beyond 11 800 reporting activities and outputs, we seek to Employees trained demonstrate how our interventions improve Engineering, operations, maintenance and outage disciplines lives, strengthen institutions, build capabilities and contribute to sustainable development 3 713 outcomes. Through this approach, we reaffirm Learners in the pipeline our accountability to being not only an energy provider, but also a responsible corporate citizen 2023 2024 2025 2026 R2.17 Progressing through structured development programmes and a catalyst for social progress in South Africa. billion invested 196 Exits in training and skills Bursaries awarded HUMAN CAPITAL development during People remain central to our transformation and 2 705 Funding study toward scarce and critical skills FY2026 long-term sustainability. During the reported period, we focused on building a resilient, 2 280 2 436 2 248 (FY2025: R1.51 billion) 84 Artisan trade-test support skilled and future-ready workforce through employee wellbeing, leadership stability, skills Learners following structured trade-test readiness measures development, diversity and inclusion and an ethical, high-performance culture. As we advance 53 our organisational evolution and JET, continued Employees trained on renewable energy investment in development, reskilling and Solar PV, wind, battery storage and smart grid technologies organisational effectiveness will be essential to support operational excellence, innovation and sustainable growth. LEARNING IN ESKOM 2023 2024 2025 2026 Our Eskom Academy of Learning (EAL) aims to facilitate the closing of the competency gaps within Eskom, EMPLOYMENT AND BENEFITS through analysis of current, emerging and future competency gaps, implementation of learning strategies, offering Attrition rate A market-related remuneration and benefits fit for purpose learning solutions, providing learning governance in order to assist the business in sustainably review is a strategic imperative, alongside broader 6.83% delivering on its strategic objectives now and into the future. employee programmes, to attract and retain critical skills, strengthen workforce stability and support long-term organisational resilience. 5.70% 5.90% As at 31 March 2026, headcount increased Quality Education Eskom: powering the SDGs by 1 244 employees to 43 274, strengthening 5.35% operational capacity through targeted recruitment Through the Eskom Academy of Learning’s initiatives (e.g. technical training, leadership development, renewable in critical areas. While attrition remains relatively energy modules) we are ensuring a future-fit workforce and supporting lifelong learning. Further community stable, rising headcount reflects improved initiatives, such as the life orientation textbooks which include electrical safety content that Eskom helped retention as the organisation expands its develop for grades 4–12 (English edition launched June 2025) and the well-established Eskom EXPO workforce. 2023 2024 2025 2026 programme, contribute to community education. Building Human Capital and Skills 46 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued We develop leadership capability across all levels of the organisation through a suite of structured leadership development programmes. These programmes are designed to equip leaders with the mindset, skillset and practical experience required to lead effectively, drive performance and navigate organisational complexity. From newly appointed supervisors through to executives, the programmes provide targeted development interventions that strengthen leadership effectiveness, support successful role transitions and foster a consistent leadership culture across the business. SDP MMP SMP EDP TPL Supervisory Development Middle Senior Executive Transition Programme Programme Management Programme Management Programme Development Programme for Leaders Equips newly appointed supervisors Strengthens leadership effectiveness Enables senior leaders to lead Provides a platform for executives to Supports newly appointed with the foundational capabilities of appointed middle managers to with a strong leadership mindset, develop collectively as a leadership supervisors, managers and senior required to execute their roles plan, lead, organise, monitor and fostering direction, alignment and cohort, align leadership behaviours and leaders in transitioning effectively effectively and transition successfully control effectively. commitment across the organisation. reinforce the organisational leadership into roles, building clarity, confidence into supervisory roles. brand in pursuit of excellence. and capacity. 25.5 days 24 days 25 days 14 days 4 days over 7 weeks across 6 blocks across 6 blocks across 7 sessions (classroom programme) These programmes strengthen leadership capability and confidence across all levels of the organisation, enabling leaders to navigate complexity, lead effectively and drive business performance. By supporting successful leadership transitions and continuous development, they also contribute to employee engagement, retention and the development of a sustainable leadership pipeline for the future. DR REUEL KHOZA LEADERSHIP DEVELOPMENT CENTRE (RJ KHOZA LDC) LAUNCH The Leadership Development Centre (LDC) was relaunched and repositioned as Eskom’s central hub for leadership and executive capability development, reinforcing a strategic shift toward best-in-class, in-person leadership learning. Officially relaunched on 12 August 2025 alongside the Executive Development Programme (EDP), the centre was renamed the Dr RJ Khoza Leadership Development Centre in recognition of his leadership legacy, with the Board Chair, Board members, Exco and senior executives in attendance. The repositioning reflects a deliberate focus on closing leadership competency gaps across all levels and fostering a cohesive leadership culture through structured, immersive development experiences. This strategic investment enhances leadership capability, strengthens organisational alignment and positions Eskom to build a future-fit leadership pipeline that supports sustainable value creation. 47 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued THE UNITED NATIONS GLOBAL COMPACT ENABLING A FUTURE-FIT ORGANISATION Copilot is being introduced as an AI-enabled The United Nations Global Compact (UNGC) THROUGH AI AND MICROSOFT COPILOT productivity tool across applications such as Teams, is a voluntary initiative based on organisational We accelerated our digital capability-building journey Outlook, Word, Excel and PowerPoint, helping CEO commitments to implement the universal through the rollout of Microsoft 365 Copilot and employees summarise meetings, draft content, sustainability principles. As a founding signatory broader artificial intelligence (AI) enablement prepare presentations, analyse information and work and a member since 2000, we are committed initiatives, supporting the organisation’s drive to more efficiently. To support responsible adoption, to advancing sustainable development through become a high-performance, future-fit utility. Eskom has completed two phases of employee innovation and leadership. In FY2026, three of our Through Project NURU, Eskom’s Microsoft training, supported by webinars, structured learning, young professionals participated in the UNGC 365 Copilot adoption initiative, the programme booth awareness sessions, role-based training, SDG Innovation Accelerator Programme, where progressed from a 190-user pilot to an Eskom-wide planned roadshows and Microsoft certification they developed an innovative Long Duration AI adoption journey. By May 2026, more than 10 477 opportunities through the Enterprise Skills Initiative. Energy Storage solution to reduce clean energy employees had been enabled, with 67.6% active usage The adoption approach positions AI as an enabler of losses. Through global collaboration, mentoring recorded, demonstrating that AI adoption is moving human capability, underpinned by human oversight, and skills development, the team’s proposal was beyond experimentation and becoming part of sound judgement, data protection and ethical use, recognised among the top three in the programme, everyday productivity across the organisation. thereby strengthening productivity and readiness for a demonstrating our commitment to innovation, more digitally enabled energy sector. environmental stewardship and meaningful contribution to Sustainable Development. The UNGC hosts a sustainability training academy that LEARNER PIPELINE offers training to all Eskom personnel as part of our Our learner pipeline supports Eskom’s long-term skills development and transformation objectives by creating participation in the initiative. structured pathways for young people to gain workplace exposure, technical capability and professional experience. We continued to strengthen future talent pools across critical skills areas, while supporting youth employment, inclusion and the development of capabilities required for South Africa’s evolving environment. Our progressive increase in learner pipeline numbers strengthens our capacity to respond to future skills for the transition. Building capability for a sustainable future Plant Non- Artisans Engineers Technicians operators technical 936 967 425 537 848 3 713 total learners in the pipeline 48 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued DIVERSITY, EQUITY AND INCLUSION (DEI) We continue to advance an inclusive and representative workforce that reflects our transformation commitments and POWERING TOMORROW: ESKOM AWARDS 196 BURSARIES TO YOUNG TALENT supports equal participation across the organisation. Our focus remained on strengthening gender equity, disability SHAPING SOUTH AFRICA’S ENERGY FUTURE inclusion, youth development and access to growth opportunities. These efforts support retention, organisational cohesion and a workplace where employees are enabled to contribute meaningfully to Eskom’s mandate. During the 2026 financial year, we awarded 196 bursaries to students in critical fields that support South Africa’s energy transition’s future skills requirements. The programme strengthens access to higher education while building the pipeline of engineers, scientists and technical professionals needed Gender Equality Eskom: powering the SDGs to support a more sustainable, modern and resilient power system. The bursary programme helps develop the capabilities required for the future of the organisation and South Africa, including a cleaner energy future, new technologies and a more adaptable workforce. We have diversity and inclusion programmes that are driving, inter alia, our gender equity aspirations. However, we acknowledge that certain gaps remain (like women in some technical fields and meeting targets Bursary awarding ceremony held at EAL – 3 February 2026 in senior and middle management representation), and we must accelerate efforts to meet these. We are proud of initiatives like childcare facilities, maternal health and anti-harassment policies that demonstrate a holistic approach to gender equality and well-being. Empowering Women and Fostering Inclusive Workplaces Equity and inclusive transformation in line with Gender equity remains an area of ongoing focus, our Employment Equity Plan remain a priority for particularly in senior management roles, occupational our business. Our racial equity profile reflects the levels and disciplines where women remain under- progress made in building a workforce that is broadly represented. Through targeted development, representative of South Africa’s demographics, leadership, technical and inclusion programmes, we demonstrating the impact of sustained transformation continue to create pathways that improve access, efforts across the organisation. While this progress progression and retention for women across the is encouraging and meeting our internal targets, we business. continue to strengthen representation in technical, specialist and leadership roles to support a more balanced talent pipeline. Racial equity: Target vs Actual Gender equity: Target vs Actual 88.31 45.27 87.73 44.23 43.42 83.12 81.64 41.82 Senior management Middle management Senior management Middle management Target Actual Target Actual 49 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued At the end of the financial year, 1 452 of our and Youth Employment Services (YES) participants permanent workforce consisted of people living with disabilities. These measures strengthen access to with disabilities, representing 3.36% of our workforce employment, training, skills development and career and above the national target of 3%. We support progression, while promoting dignity, fairness and disability inclusion through our Reasonable equal opportunity across the organisation. Accommodation Standard, which helps remove physical, technological, communication and workplace Through the following targeted programmes barriers that may limit equal participation. This that support leadership development, further includes workplace adaptations, accessible facilities, learning, youth opportunities, disability inclusion assistive technologies, specialised equipment, flexible and reasonable accommodation, the organisation work arrangements, sign language interpretation, strives to enhance employee retention, strengthen mobility and transport support where required and social cohesion and advance inclusive and equitable workplace learning support for employees, learners participation. Eskom Women in Power Programme 1 Empowering women through leadership development, mentorship and equitable access to growth opportunities Talent Management Programme 2 Provision of further study bursaries to female employees and Persons with Disabilities Key Youth Development Programmes 3 Awarding of Eskom bursaries, Learnerships, Apprenticeship, Workplace Interventions Based Learning and the Youth Employment Services (YES). Disability Management Forums 4 Promoting awareness, advocacy and support structures to ensure full participation of employees with disabilities. Provision of Reasonable Accommodation 5 Implementing tailored adjustments and resources to remove barriers and enable equal opportunities for all employees.” Eskom Women Advancement Programme (EWAP) is Eskom’s enterprise-wide programme for advancing women into leadership, technical and nuclear careers while creating an inclusive workplace and promoting gender equity across the organisation. Looking ahead, we will continue to strengthen inclusive pathways that improve representation, enable equitable career progression and embed accessibility across the employee experience. 50 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued EWAP: BUILDING WOMEN LEADERS WHO SHAPE SOUTH AFRICA’S ENERGY FUTURE From intention to measurable transformation – EWAP to EWIP: For more EWIP IMPACT PATHWAY than a decade, Eskom has deliberately invested From intention to measurable transformation in creating opportunities for women to lead EWIP creates value by linking intention to measurable organisational change across one of South Africa’s most complex and traditionally male-dominated industries. What began in 2013 as the Eskom Women Advancement Programme (EWAP) has evolved into the Eskom Women in Power Programme (EWIP) – a strategic, enterprise-wide initiative designed to embed gender equality into leadership, governance and organisational Targeted DEI Access to development Increased appointments Stronger female More inclusive decision- culture. The results demonstrate sustained Intervention and mentoring and promotions leadership making and a sustainable progress. Since the programme’s inception, representation leadership pipeline female representation across the organisation • Strategic commitment to • Leadership development • More women in the has increased, while senior management gender equality programmes talent pipeline • Growth in women in • Broader perspectives and representation has also progressively increased. • Inclusive policies and • Mentoring and coaching • Increased internal leadership better decisions enablers • Skill building and stretch mobility • Balanced representation • Organisational capability In the reported year, women accounted for • Targeted programmes assignments • Higher rates of external across levels and innovation 44% of all external appointments and 36% of internal appointments and promotions, ensuring (eg EWIP) • Sponsorship and appointments • Stronger governance • Sustainable pipeline of that deliberate women advancement is driven • Accountability and networking • Equitable access to diversity women leaders through recruitment and career advancement. governance career opportunities • Visible role models and • Future-ready Today, 44.25% of Eskom’s managers are women, mentors organisation demonstrating Eskom’s commitment to gender diversity and inclusion, equity and transformation and meaningful contribution to sustainable BEYOND NUMBERS: CULTURE, CAPABILITY AND LONG-TERM VALUE development goals, particularly SDG5. Beyond representation, we have invested in Women visible as leaders Women as mentors Women as decision- Stronger organisational Employee retention and building a sustainable leadership pipeline. Eskom’s Increasing visibility of Building and empowering makers capability engagement sustainable women leadership pipeline is built by women leading at all levels. mentors who inspire and Strengthening women’s Better leadership diversity, A more inclusive workplace identifying talent early, accelerating development, uplift others. influence in shaping strategy collaboration and agility to that attracts, develops and providing meaningful career opportunities and and outcomes execute strategy. retains talent. creating an inclusive culture where women can lead, innovate and shape the future of the organisation. Succession planning is a strategic priority to ensure future generations of female leaders are equipped to lead the organisation through the energy transition. By investing in women as leaders, mentors and decision-makers, EWIP is driving inclusive leadership and building a sustainable pipeline of women leaders who will shape South Africa’s energy future. Eskom is strengthening organisational capability while creating a workplace where talent, not gender, defines opportunity. 51 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued HEALTH AND WELLNESS Good Health and Wellbeing Eskom: powering the SDGs Intervention FY2026 results Occupational health Our commitment to ‘Zero Harm’ and improving safety performance is evidenced by a decline in lost-time services 47 Occupational health clinics across Eskom injuries. Also, our ‘See – Act – Immediately’ and safety training events like the annual OHS conference contribute to ingraining a culture of safety. However, our fatalities have been unacceptable and this will remain a key priority for our future performance. Medical surveillance and fitness for duty 94% Fitness-for-duty compliance 21 cases investigated Ensuring workforce and public health and safety through robust OHS Lifestyle disease management 32 Ill-health retirements Reduced from 41 Occupational health and wellness are essential to workforce resilience, safety and sustainable performance. A healthy and supported workforce contributes to improved morale, engagement, productivity and Disability inclusion and accommodation 1 452 Employees with disabilities +150 year-on-year operational discipline, while strengthening our ability to deliver on our mandate in a demanding and evolving operating environment. Through preventative healthcare, risk-based medical surveillance, wellness programmes and targeted interventions, we strengthen workforce resilience, promote inclusion and enable Fatigue risk employees to perform safely and sustainably. This integrated approach reinforces inclusion, long-term management 28 296 Employees and contractors reached wellbeing and our ability to nurture a resilient workforce capable of supporting sustainable value creation. Mental health and Mental health framework implemented We implement targeted health and wellness interventions tailored to our operating environment and employee wellness Priority employee needs to support a healthy, safe and productive workforce. one risk 52 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued MANAGING OCCUPATIONAL HEALTH RISKS Our occupational health programme focuses on four Our approach material risks that may affect employee health, safety, wellbeing and organisational performance. These risks are managed through surveillance programmes, targeted interventions and preventative controls. Noise-induced hearing Ergonomic conditions Fatigue Mental health Risk-based MANAGING MENTAL HEALTH loss (NIHL) We identify, assess and Mental health emerged as a significant occupational Poor workstation design Fatigue affects alertness, Workplace pressures Prolonged exposure to and repetitive tasks can decision-making and safety can affect psychological prioritise occupational health risk during the year. We saw an increase in health risks. noise can lead to permanent cause musculoskeletal performance. wellbeing and performance. mental health challenges amongst employees with a hearing impairment. strain. record 13 479 of our workforce accessing psychosocial support and counselling services. Of these employees, 77.1% reported distress linked to stress and burnout, How we manage How we manage How we manage How we manage furthermore, 36% specifically attributed their mental People-centred health challenges to workplace-related stressors. • Noise exposure risk • Ergonomic risk • Fatigue risk management • Employee assistance We support the assessments assessments • Shift and roster design programme physical and mental In response, we designated mental health as a • Medical surveillance • Workstation design • Rest and recovery facilities • Counselling and support wellbeing of every Priority 1 Risk due to its potential impact • Audiometric screening standards • Awareness and education services employee. on employee wellbeing, safety, productivity, absenteeism, ill-health retirements and organisational • Hearing conservation • Manual handling training • Incident-based fatigue • Mental health awareness sustainability. To address this risk, we implemented programme • Task rotation and job reviews campaigns an integrated Mental Health Framework supported • Engineering and design • Manager training and by a comprehensive mental health strategy focused administrative controls • Early reporting of referral on awareness, prevention, early intervention and symptoms • Confidential reporting Compliance and employee support. The framework is aligned with channels prevention legislative requirements, ESG commitments, Diversity, We meet legal Equity, Inclusion and Belonging (DEIB) priorities and requirements and apply FY2026 OUTCOME FY2026 OUTCOME FY2026 OUTCOME FY2026 OUTCOME Eskom’s health and wellness strategy. controls that prevent 1 275 NIHL cases Ergonomic assessments Fatigue management Increased uptake of harm. identified and investigated. completed across office standard rolled out at key employee wellness and and operational sites. operational sites. counselling support. PREVENTATIVE HEALTH MANAGEMENT Monitoring • Prevention • Early intervention • Support • Continuous improvement Data-driven We monitor, measure and improve HEALTHY, SAFE AND PRODUCTIVE WORKFORCE performance using Better wellbeing • Improved safety • Higher productivity • Sustainable performance health data. 53 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Our Mental Health Framework is supported by a suite of wellness programmes; it promotes employee wellbeing, resilience, engagement and psychological safety. It is implemented through targeted wellness interventions, strategic partnerships, continuous monitoring and data-informed decision-making. The framework is guided by the principles of respect, privacy, empathy and confidentiality, contributing to an inclusive, supportive and high-performing workplace. 1 2 3 4 5 Education and awareness Care and support Early identification and Leadership and culture Monitoring and continuous Promote mental health literacy, Provide accessible and confidential intervention Build a psychologically safe and improvement reduce stigma and encourage support through counselling, Identify mental health risks early inclusive culture where leaders Use data, technology and strategic help-seeking through campaigns, Employee Assistance Programme through screening, monitoring are equipped and empowered to partnerships to monitor, evaluate workshops, health talks and (EAP), psychosocial support and and timely intervention to prevent support employee wellbeing and and continuously enhance mental communication initiatives. referral pathways. escalation and support recovery. open conversations. health programmes and outcomes. Supporting programmes Resilience and 28 296 Employee Assistance Counselling and Stress and burnout Fatigue management Mental health psychological safety Employees and contractors reached through Programme (EAP) psychosocial support management interventions awareness campaigns initiatives fatigue management programmes Expected outcomes Impact Improved Enhanced Reduced stress, Increased awareness employee psychological burnout and and early help- Improved Stronger Sustainable wellbeing and safety fatigue- seeking productivity and organisational Healthy Safe performance resilience culture related risks behaviour engagement resilience minds workplaces 54 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Our broader health and wellness programme Through exposure monitoring, risk assessment, CONTINUOUS IMPROVEMENT AND FUTURE LOST TIME INJURY RATE – LTIR adopts a holistic approach to employee wellbeing, medical surveillance, training and assurance processes, READINESS We achieved an employee Lost Time Injury Rate encompassing physical, intellectual, mental, social, Eskom supports healthier, safer and more productive Eskom is strengthening the maturity of its OHS (LTIR) of 0.18 in FY2026, reflecting an improvement occupational, spiritual and environmental wellbeing. workplaces while strengthening the prevention of ecosystem through ISO 45001-aligned management on both the prior year performance of 0.23 and Programme effectiveness is continuously monitored occupational illness and the credibility of sustainability systems, technical governance, legal compliance, the organisation’s tolerance level. This performance and enhanced through employee feedback, data reporting. document management and digital transformation. demonstrates the effectiveness of our proactive analytics and emerging technologies including Artificial Initiatives such as the digitalisation of OHS HIRA Intelligence (AI) tools. The targeted key outcomes of Eskom is also advancing psychosocial safety by reporting, development of SHE legal register modules occupational health and safety governance and risk our health and wellness programme include: promoting workplaces where employees feel and strengthening of risk assessment platforms management approach, supported by enterprise- • Improved employee wellbeing and resilience respected, supported and able to raise concerns improve consistency, accessibility and oversight. wide knowledge sharing, ongoing engagement with • Enhanced psychological safety without fear. By addressing psychological, emotional These improvements support a more integrated OHS professionals, structured OHS forums and • Increased awareness and early intervention and social wellbeing alongside physical safety, we view of health, safety, environmental and operational leadership-led culture transformation initiatives such broaden the Zero Harm value and foster a culture of risk, helping Eskom anticipate emerging hazards, as the See–Act–Immediately programme. Continued • Reduced health and wellbeing risks care, inclusion and resilience that enables people to improve assurance maturity and demonstrate implementation of these measures, together with • Improved productivity and engagement sustained progress. The next horizon is to deepen work safely and contribute fully. the systematic integration of lessons learned across • Stronger workforce resilience leading indicators, strengthen worker and contractor Occupational health and safety remains Eskom’s the Group, is expected to sustain positive safety • Sustainable organisational performance participation, improve the quality of corrective action highest priority. Although safety performance has performance and reinforce our commitment to a closure and translate data into predictive insight that OCCUPATIONAL HEALTH AND SAFETY improved, fatalities and serious incidents remain supports prevention before harm occurs. Zero Harm culture. Our commitment to sustainability begins with unacceptable. Through our Zero Harm commitment, protecting life. Through the See-Act-Immediately we are strengthening contractor management, approach, we empower employees, contractors and leadership accountability, preventative controls, leaders to identify hazards early, take proactive action and public safety initiatives to eliminate harm and and prevent harm before it occurs. This initiative is ensure the safety of our employees, contractors, and embedding health and safety as a lived culture of care, communities. accountability and prevention, extending beyond the workplace into homes and communities where PUBLIC SAFETY AND SHARED SOCIAL individuals continue to recognise risks, speak up and RESPONSIBILITY act responsibly to protect others. Our public safety work extends the impact of OHS At the heart of our sustainability journey is a beyond the workplace and into the communities commitment to people and the Zero Harm value. served by the organisation. Through education, By promoting shared vigilance and a preventative, awareness campaigns, stakeholder engagement and risk-informed approach, we protect employees, targeted interventions, the Public Safety Programme contractors, service providers, communities and the helps prevent electricity-related injuries and fatalities public. In doing so, we strengthen trust and support while encouraging responsible electricity use and the safe, reliable and responsible delivery of electricity protection of public infrastructure. This programme while contributing to a safer future for all. reflects a broader sustainability principle: the organisation’s responsibility does not end at the OCCUPATIONAL HYGIENE AND EMPLOYEE boundary of its operations. By addressing risks WELLBEING that affect employees, contractors, customers and Occupational hygiene plays a key role in protecting communities, we reinforce trust, support social worker health by identifying, assessing and controlling resilience and demonstrate the practical meaning of exposure to workplace hazards. responsible energy delivery. 55 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued ORGANISATIONAL EFFECTIVENESS We are progressing through a fundamental transformation aligned to our corporate strategy, JET, unbundling programme and operational turnaround priorities. As the organisation evolves, to meet South Africa’s future energy needs, our organisational culture must be a key enabler of this shift. People prioritisation Improved business results, reflecting a culture of performance fuelled by proud and passionate employees who are multi-skilled, agile, highly engaged and deeply connected to the business and one another, thus enabling Eskom to thrive and lead in an evolving world of work and energy industry. Operational excellence Successful execution of Eskom’s strategy, commitment to quality, continuous business improvement, visible felt leadership and all-round process excellence, all while reliably servicing South Africa’s energy needs. Financial prudency Eskom on the path towards becoming financially secure through achieving revenue certainty, cost optimization and efficiency while strengthening the balance sheet through liquidity initiatives and securing greener energy funding solutions/investment. Customer centricity A transformed organisational public image driven by Eskom’s deliberate efforts to empower and enable employees such that strong customer relations and service delivery (quality, efficiency and professionalism) is consistently maintained. Accountability Courageous, committed and empowered employees who see themselves as business owners of Eskom and act, accordingly, demonstrating high levels of ownership, an internal locus of control and a willingness to change behaviour and adapt as required. Values driven (ZIISCE) Aligned and engaged Guardians, who make a deliberate effort to consciously embody and demonstrate Eskom’s organisational values in the execution of duties, their behaviours, attitudes and overall work ethos. 56 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued EMPLOYER OF CHOICE We were recognised as a Top Employer South We recognise that our employees are core to Eskom’s recovery, transformation and Africa 2026 by the Top Employers Institute for the long-term sustainability. We promote morale, engagement and productivity through second consecutive year, reinforcing our position as recognition, competitive rewards, career development and a people-centred culture. an employer of choice within the energy sector and Salary increases, performance incentives and a multi-year wage agreement help provide broader South African economy. stability, strengthen accountability and reward employee contributions to Eskom’s turnaround. We also continue our self-funded short-term incentive scheme and This international certification recognises production bonuses to recognise exceptional performance and reinforce the link between organisations that demonstrate excellence in people achievement and productivity. Our second consecutive Top Employer certification practices, employee wellbeing, talent development, reflects our commitment to employee wellbeing and a positive employee experience. diversity and inclusion, leadership development and workplace culture. This global recognition reflects Key ways we recognise employees and encourage morale and productivity include: ongoing investment in creating an environment where • Performance-based short-term incentives and production bonuses that reward employees can develop professionally, contribute excellence. meaningfully and build sustainable careers while • A three-year wage agreement that provides labour stability and confidence. supporting the nation’s electricity future. • Investment in leadership development, bursaries, training and reskilling programmes. The certification also provides independent validation • Career development through the Eskom Academy of Learning, Renewables Academy of commitment to fostering an inclusive, values-driven and Nuclear School. and high-performing workplace aligned with our • Recognition through Top Employer certification and a strong employee value strategic transformation journey. proposition. • A culture built on accountability, operational excellence and values-driven leadership. • Employee wellbeing, mental health support and a commitment to Zero Harm. Through these initiatives, we strive to ensure employees feel valued, recognised and empowered to perform at their best. 57 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued OUR SINOBUNTU IN ACTION Our value of Sinobuntu refers to demonstrating Eskom’s ideals through ubuntu-based leadership and behaviour – putting people, communities and relationships at the centre of how our organisation operates. Sinobuntu (meaning “we are because of others”) reflects the principle that our success is interconnected with our employees, customers, communities and stakeholders. “Sinobuntu in action” means living the belief that Eskom’s future depends on the strength of our relationships – with our people, our communities, our stakeholders and the environment. It is about leading with care, accountability and a shared commitment to creating sustainable value for South Africa. This value links strongly with our JET, because a successful transition requires not only technology and infrastructure, but also trust, empathy and partnerships with people. WE CARE WE SERVE FOR EACH OTHER OUR CUSTOMERS We value our people and We listen, respond and act each other, offering support, with empathy and pride, putting kindness and respect to every our customers at the heart of colleague, every day. everything we do. WE UPLIFT OUR WE WORK COMMUNITIES AS ONE TEAM We invest in skills, enterprise SINOBUNTU We collaborate across development and local jobs so IN ACTION boundaries, respect diverse that the communities around perspectives and deliver more us grow with us. Our people. Our values. together. Our power to make a difference WE ACT WITH WE DRIVE INTEGRITY EXCELLENCE We do what is right, even We take ownership, learn when no one is watching. and improve continuously to We are honest, accountable power a brighter future for and trustworthy. South Africa. OUR VALUES – ZIISCE ZERO HARM INTEGRITY INNOVATION SINOBUNTU CUSTOMER SATISFACTION EXCELLENCE Safety first, We do what is We think differently We care, respect We put our customers We deliver every time. right. and create solutions. and support. first, every time. our best. Sinobuntu is more than a value – It is our way of living, working and leading. Together, we power a better tomorrow. 58 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued SOCIO-ECONOMIC DEVELOPMENT AND As South Africa transitions to a lower-carbon which integrates socio-economic development, Corporate Social Responsibility and Community TRANSFORMATION economy, we are focused on ensuring that economic transformation and JET objectives into our operations, Development; Human Capital Development, Skills Our contribution to South Africa extends beyond growth, social development and environmental investments and value chain. Aligned with the and Education; Just Energy Transition and Economic the provision of electricity. As a strategic state-owned sustainability are advanced together. Our approach National Development Plan (NDP), SDGs and our Inclusion; and Supplier Development, Localisation enterprise with a developmental mandate, we create seeks to create opportunities, develop skills, support ESG commitments, the SETP provides a framework and Industrialisation. Together, these focus areas shared value by advancing transformation, supporting livelihoods and strengthen local economies, enabling a for delivering measurable social and economic support community upliftment, enterprise growth, local enterprise growth, strengthening communities and people-centred and inclusive Just Energy Transition. outcomes. job creation and inclusive economic transformation, contributing to national development priorities. Socio- demonstrating how Eskom creates sustainable value To drive this agenda, we have implemented the The SETP is built on five interconnected focus for society and the economy. economic development is embedded in our sustainability Socio-Economic and Transformation Plan (SETP), areas: Universal Energy Access and Energy Security; strategy, social licence to operate and JET journey. Expand Universal Energy Access Drive Corporate Social Develop Human Capital Skills and Advance the Just Energy Promote Supplier Development, and Energy Security Responsibility Education Transition Localisation and Industrialisation 1. Expand electrification to 1. Strengthen social licence to 1. Invest in education, training, and 1. Repurpose coal-fired power 1. Increase local content and underserved and rural operate more efficiently leadership development stations (e.g. Komati) procurement from South communities African-based suppliers 2. Improve Organisational 2. Promote employment equity 2. Create alternative livelihoods 2. Provide fair electricity prices Reputation & Stakeholder and gender inclusion for affected workers and 2. Support industrialisation that support low-income Confidence communities through technology transfer and families and cost of doing 3. Support youth development and local manufacturing business in South Africa 3. Grow Talent and Improve Skills technical skills aligned with the 3. Promote skills development, Deficit energy sector reskilling, and local enterprise 3. Incubate and mentor small and 3. Deploy microgrid and off-grid development emerging suppliers, especially solutions where grid expansion those owned by youth, women is not feasible and designated groups OUR COMMITMENT Eskom is committed to unlocking potential, creating shared value and driving inclusive economic transformation through sustainable energy, empowered people and strong partnerships. People Education and skills Enterprise development Supplier development Jobs and livelihoods Inclusive economic growth 59 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued We focus on the social outcomes created through socio-economic development programmes, community OUR CSR STRATEGY partnerships, social investment initiatives POWERING COMMUNITIES. ENABLING and stakeholder engagement. These interventions strengthen community POTENTIAL. CREATING SHARED VALUE. resilience, improve livelihoods and Creating shared value through strategic investments contribute to sustainable local that strengthen communities, support economic growth, 1.51M R153.25M 950 R27.3M development. expand clean energy access and build stakeholder trust. Beneficiaries CSI committed SMMEs Invested in clean impacted spend developed energy initiatives CORPORATE SOCIAL RESPONSIBILITY (CSR) Our CSR Strategy positions social investment as a strategic enabler of sustainable growth, moving beyond VALUE STRATEGIC ENABLERS EXPECTED traditional philanthropy towards a PROPOSITION FOCUS AREAS OUTCOMES shared value approach that delivers measurable benefits for communities, Eskom and the broader South African People-centred impact Education & Skills Governance & Oversight Stronger Communities economy. The strategy integrates and ring-fences CSR investments to support Eskom’s strategic priorities, infrastructure Enterprise & SMME Inclusive economic growth Sustainable Funding Inclusive Growth rollout programmes and the JET, while Development strengthening our social licence to operate through targeted, outcome- Energy Access driven interventions. Sustainable future People & Capabilities Clean Energy Access & Sustainability With a national footprint spanning all provinces, our investments are Social licence to operate Community Wellbeing Data & Impact Management Stakeholder Confidence directed towards education and skills development, enterprise and supplier development, community wellbeing, Measurable ESG value Infrastructure Development Partnerships & Engagement Measurable ESG Impact energy access and sustainability initiatives. The programme aligns with the NDP, SDGs and Eskom’s socio-economic transformation objectives, ensuring that social investment contributes to both national development priorities and local Together, we are powering sustainable communities Customer community needs. and enabling a better future for South Africa. Integrity Innovation Sinobuntu Satisfaction 60 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued We implement community socio‑economic investment initiatives focused on delivering sustainable and measurable social outcomes in the communities where we operate throughout the country. CSI COMMITTED SPEND CATEGORIES (millions) Agriculture R0.05 Environment R0.72 ECD R0.97 Radio Stations R1.41 Health R5.70 Ten science, technology, engineering, mathematics Welfare R23.13 and innovation (STEMI) school support programmes Clean Energy were achieved and successfully implemented Infrastructure R27.32 across all provinces. This initiative reflects our Enterprise and focus on deploying CSR resources in a manner that Supplier Development R9.72 supports both immediate developmental needs and Education R42.17 longer‑term sustainability outcomes. STEMI R42.06 The Eskom Expo for Young Scientists supports STEMI development by enabling learners to apply TOTAL CSI COMMITTED R153.25m scientific thinking, research and innovation to real-life Through our support for the Expo, we contribute challenges. In FY2026, the International Science to the development of future scientists, innovators Fair brought together 319 learners from South and engineers, with a focus on widening access During the financial year, 74 approved projects delivered a total committed CSI investment of R153.25 Africa, Lesotho, Namibia, Zimbabwe, Ireland, India to opportunities for learners from previously million, reaching more than 1.51 million beneficiaries and supporting 950 SMMEs across South Africa. and Russia at Emperors Palace in Kempton Park, disadvantaged backgrounds. The programme Investments included R27.3 million directed towards clean energy infrastructure projects, the implementation where they showcased projects, engaged with peers strengthens confidence, networks and career of STEMI support programmes across all provinces, enterprise development initiatives, community outreach and experts and participated in science-focused pathways through exposure, awards and bursary programmes and national skills development interventions. experiences at the Sci-Bono Discovery Centre and opportunities, helping to build a more inclusive skills the Wits Anglo American Digital Dome. pipeline for South Africa. Our impact extends beyond funding projects. Through strategic partnerships and targeted interventions, we contribute to improved educational outcomes, enhanced energy access, local economic participation, enterprise growth, job creation and community resilience. By linking social investment to measurable outcomes, we create lasting value that supports inclusive growth, strengthens stakeholder trust and contributes to a more equitable and sustainable future for South Africa. No Poverty Eskom: powering the SDGs Our unwavering focus on the transition to uninterrupted power supply bolsters local economies, protects jobs and enables schools, clinics and small enterprises to operate smoothly, thereby contributing to SDG 1. In addition, our efforts in community electrification and the CSR outreach and support initiatives under the Eskom Development Foundation and Divisions have contributed to low-income communities. Supporting poverty alleviation through reliable energy access 61 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued This included a total investment of R27.3 million directed towards clean energy infrastructure initiatives by ESDEF and Eskom divisions, in support of ESDEF’s “Light Up SA” (solar-powered mini-grids) objective. This investment supports improved energy access and enhanced reliability in critical, strategic and community areas. ROOFTOP SOLAR SYSTEMS STRENGTHEN LEARNING RESILIENCE IN ORANGE FARM SCHOOLS We installed rooftop solar systems at five schools in Orange Farm, Gauteng, to support uninterrupted teaching and learning in a community affected by electricity infrastructure theft, vandalism and related supply interruptions. The initiative was made possible through funding from the Eskom Development Foundation (ESDEF), enabling schools to access more reliable and sustainable power while reducing the impact of electricity disruptions on learners and educators. Each beneficiary school received a rooftop solar installation comprising 2 × 15kW inverters, 12 × 60kWh batteries and 40 × 620W solar panels. The schools included: Radipabi Primary School, Aha-Thuto Secondary School, Laus Deo Primary School, Moyisela Primary School and Mphethi Mahalatshi Secondary School. The rooftop solar systems are intended to help schools remain operational during supply interruptions, ensuring that teaching and learning can continue with fewer disruptions. In addition to improving electricity reliability, the systems are expected to reduce electricity costs for the schools. These savings can be redirected towards educational resources, maintenance and other essential school needs, further strengthening the teaching and learning environment. The initiative reflects our commitment to supporting communities, investing in learners and enabling sustainable solutions that contribute to brighter futures across South Africa. Our work in communities reflects a deliberate effort to create lasting value where we operate. By aligning social investment with broader sustainability priorities, we are strengthening trust, supporting inclusive development and contributing to resilient communities that can participate meaningfully in South Africa’s socio-economic progress. 62 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued SOCIAL INITIATIVES IN REPOWERING AND REPURPOSING (R&R) We are repowering and repurposing selected coal-fired power station sites to combine cleaner energy GROOTVLEI CLIMATE SMART HORTICULTURE CENTRE opportunities with socio-economic development. This work supports local economic diversification while stations The Grootvlei Climate Smart Horticulture Centre supports economic diversification around remain operational, using existing grid capacity, technical skills and renewable energy potential to create new Grootvlei Power Station through sustainable agriculture, skills development and local employment. opportunities for workers, communities and local enterprises. The centre was established in partnership with government and local stakeholders and was launched in January 2026. In its first phase, 73 direct construction jobs were created and 30 permanent staff were employed, with most personnel sourced from the local community. Zero Hunger Eskom: powering the SDGs The proof of concept lays the foundation for commercial climate-smart agriculture, improved farming resilience and stronger local value chains. Expansion plans include additional greenhouses, tunnels and Our transition to cleaner energy includes repurposing decommissioned coal infrastructure for community- shade nets, as well as a multipurpose training facility and a 15ha agriculture commercial hub planned beneficial projects such as climate-smart agriculture. For instance, at Grootvlei Power Station, the company is for 2027/2028. constructing a half-hectare horticulture and greenhouse facility to support local food production. In this way, we are creating new employment opportunities as we transition. Promoting sustainable agriculture and food security through innovative projects We apply lessons from Komati to improve the way transition projects are planned and implemented. These lessons reinforced the need for early engagement, clear communication, climate literacy and broader economic diversification, rather than narrow project design. They also informed our approach to repowering and repurposing, where transition planning can continue while power stations remain operational. Mid November 2025 Mid November 2025 Mid April 2025 63 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued SKILLS DEVELOPMENT AND TRANSITION READINESS Skills development remained a practical mechanism to support a fairer transition. At Komati, the refurbished Reduced Inequality Eskom: powering the SDGs training centre has supported training for 303 employees and 527 community members as at April 2026, with a further 116 participants enrolled. Training programmes include cyber security, agripreneur development, renewable energy and solar PV installation, arc welding and coded welding. By FY2026 year-end, 94.58% of total measured procurement spend was directed to B-BBEE-compliant suppliers, exceeding the preferential procurement target and continuing to support inclusive participation by Black-owned, The Komati welding training facility has begun preparing staff, contractors and community members to support Black women-owned and youth-owned enterprises. Our transformation profile also showed continued progress, existing operations and future clean energy opportunities. At Grootvlei, the high-tech climate-smart horticulture with women representing 38% of the workforce and persons with disabilities 3.36%, while employment equity facility has enabled the start of training for two cohorts of 15 participants each. For Hendrina, the training facility targets were achieved across most occupational levels and Eskom maintained its Level 3 B-BBEE status. is being revamped to support future classroom-based and practical programmes. Planned facilities include classrooms, a computer room, a mechanical workshop and an electrical workshop, with programmes designed to combine theory, practical work and participant certification. The process is currently in procurement, including Inclusive Growth and Transformation the sourcing of required machinery. SUPPLIER DEVELOPMENT, LOCALISATION AND INDUSTRIALISATION Our Enterprise Development focuses on growing sustainable small, medium and micro enterprises (SMMEs), supporting black-owned enterprises and promoting inclusive participation in the energy sector and broader economy. POWERING MORE THAN ELECTRICITY – OUR COMMITMENT TO INCLUSIVE ECONOMIC GROWTH As South Africa continues its transition toward a more inclusive and sustainable economy, our Supplier Development, Localisation and Industrialisation (SDL&I) programme is emerging as a strategic enabler of transformation, job creation and economic participation. Beyond the mandate of keeping the lights on, we are deliberately leveraging our procurement power to create opportunities for Black Youth-Owned (BYO), Black Women-Owned (BWO) and Black-Owned Enterprises, ensuring that historically disadvantaged groups participate meaningfully in strategic sectors of the economy. During FY2026, we demonstrated measurable progress against Shareholder Compact commitments and national transformation objectives, achieving strong performance across preferential procurement, localisation, supplier development and enterprise support. We use procurement as a tool that enables us to transform the economy. 64 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Transformation, localisation and industrialisation performance – YTD March 2026 KPI Unit Target YTD Mar 2026 Status Preferential procurement (B-BBEE spend) % 80 94.58 Exceeded  Local content contracted (Eskom-wide) % 80 83.93 Exceeded  Youth-owned supplier participation % 2 6.01 Exceeded  Local content (designated) % 80 100 Exceeded  B-BBEE score level Level 4 Level 3 Exceeded  NIPP (National Industrial Participation) % 100 100 Achieved  Enterprise development (ED) Rm 5 10.52 Exceeded  Supplier development (SD) Rbn 6 7.66 Exceeded  Our procurement strategy continues to demonstrate STRENGTHENING LOCALISATION AND ENTERPRISE DEVELOPMENT – BUILDING that transformation and operational sustainability DOMESTIC INDUSTRIAL GROWTH FUTURE INDUSTRIAL CHAMPIONS can coexist. In the reported year, we exceeded our Our commitment to localisation remains a key pillar of Our Enterprise Development (ED) programme preferential procurement target by achieving 94.58% South Africa’s industrialisation agenda. We achieved continues to reshape economic participation by against an 80% target, reflecting a procurement 83.93% local content spend, exceeding the target by strengthening the competitiveness and sustainability approach heavily weighted toward B-BBEE-compliant 3.93%, demonstrating strong support for domestic of small businesses, enabling their inclusive suppliers. Particularly encouraging is the accelerated manufacturers, suppliers and local supply chains. participation within our value chain. Aligned with participation of Black Youth-Owned enterprises, Notably, 100% compliance was achieved in designated the National Development Plan (NDP) and the where we achieved 6.01% against a 2% target, product categories, reinforcing commitment to Broad-Based Black Economic Empowerment Act effectively doubling our commitment and reinforcing stimulating local industrial participation and reducing (B-BBEE) and its Codes of Good Practice, our ED deliberate focus on youth economic inclusion. This dependence on imported products. This localisation framework is designed to support SMMEs which progress signals a strategic shift from participation to strategy contributes directly to industrial expansion, are Black-owned, Black women-owned and Black empowerment, ensuring that emerging enterprises domestic supplier competitiveness and job creation, youth‑owned Enterprises through targeted financial are not merely included in the value chain but are while supporting national objectives under the JET and non‑financial interventions. positioned to grow into sustainable businesses capable framework. As South Africa transitions its energy mix, of competing in strategic industries. localisation becomes increasingly critical to ensuring Our ED contribution was R10.52 million, exceeded that the transition is not only environmentally the R5 million ED target, demonstrating commitment Importantly, we continue to strengthen participation sustainable, but economically inclusive, creating to enterprise growth and supplier diversification. among BWO businesses, emerging enterprises and opportunities for local manufacturers, emerging Collectively, these interventions supported over designated groups, ensuring procurement contributes suppliers and communities affected by structural shifts 667 SMMEs, reinforcing inclusive growth and directly to broader socio-economic transformation. in the energy sector. sustainable local economic participation. 65 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Decent Work and Economic Growth Eskom: powering the SDGs In FY2025, Eskom recorded a profit before tax of R23.9 billion, its first annual profit in eight years. This milestone was attributed to improved operational and cost discipline and is reflected in the FY2026 operational turnaround in the reduction of load shedding. This performance has a tangible effect on contributing to the stability of business and, thereby, national economic growth. On the ground, our procurement spend on Black-owned and small businesses directly injects revenue into the local economy and supports local jobs. Financial turnaround and job stability fostering national economic growth One of the Enterprise Development supplier High-impact execution by Generation and NTCSA workshop interventions conducted by SDL&I was contributed meaningfully to this achievement, particularly held in Kuruman, Northern Cape on 31 March through infrastructure expansion initiatives under the 2026. The workshops organised by Eskom provided TDP. The TDP remains one of our most strategic training and support to SMMEs, with a strong focus programmes, enabling transmission infrastructure on critical business processes. These interventions expansion necessary to support energy security, have equipped beneficiaries with essential knowledge, renewable energy integration and long-term grid resilience. enabling them to formally participate in procurement opportunities. Importantly, our supplier development strategy ensures that BYO and BWO enterprises are not left on the The training on updating the Central Supplier margins of infrastructure investment but are integrated Database (CSD) was aimed at improving compliance into high-value opportunities through subcontracting, and ensuring that businesses are visible to Eskom localisation, skills transfer and supplier partnerships. corporate buyers, government departments and the private sector. As a result of these interventions, This creates a multiplier effect across the economy, enabling suppliers to expand capabilities, formalise Selmot Projects (Pty) Ltd from Bodibe Village in the operations, improve compliance and access Northwest received an opportunity to subcontract sustainable revenue streams. under the Smart Meter Replacement contractor. The scope of work involved the replacement of 500 smart SUPPORTING THE TRANSITION THROUGH meters over a one-month period. INCLUSION We recognise that the JET must be more than an SUPPLIER DEVELOPMENT: ACCELERATING energy transition, it must also be a jobs and economic PARTICIPATION IN STRATEGIC transition. Through SDL&I, we are ensuring that INFRASTRUCTURE communities, suppliers and designated groups benefit Our Supplier Development (SD) programme meaningfully from economic opportunities linked to continues to play a transformative role in integrating South Africa’s evolving energy landscape. emerging suppliers into strategic infrastructure programmes and core operations. In FY2026, By strengthening local enterprise participation, we exceeded the R6 billion Supplier Development promoting industrialisation and supporting supplier target, achieving a substantial R7.66 billion diversification, we are helping to create a transition that contribution. This performance was largely driven is inclusive, equitable and economically empowering. by subcontracting opportunities prioritising small and medium Black-owned enterprises, significantly The integration of youth-owned and women-owned expanding participation within our supply chain. businesses into strategic sectors not only broadens economic participation but contributes toward building future industrial capacity and economic resilience. 66 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued Our coal strategy focuses on reducing coal costs and improving coal contract management. Until 2050, our power plants will need from 750 million tons to 850 million tons of coal depending on the demand for electricity. This demand is expected to create economic opportunities in the regions where we operate and SERITI–ESKOM PARTNERSHIP STRENGTHENS GRID CAPACITY FOR RENEWABLE contribute to local economic development. Generation is securing long-term coal contracts through station- ENERGY INTEGRATION specific tenders for the rest of the fleet to reduce price path fluctuations and increase price certainty. Supply On 28 November 2025, the handover of the Vunumoya Main Transmission Station (MTS) by Seriti Green contracts have been awarded following requests for proposals (RFPs) issued to the market for the Arnot, to Eskom and the National Transmission Company South Africa (NTCSA) marks a significant milestone Camden, Kriel, Matla and Tutuka power stations. in expanding South Africa’s renewable energy infrastructure. The R1 billion investment, delivered over 18 months, has been fully energised and integrated into the national grid, creating the capacity required to connect large-scale renewable energy projects and strengthen grid reliability. The project enabled the first 155MW of wind energy from the Ummbila Emoyeni One Wind Energy Facility to be connected ahead of schedule and forms part of a broader 900MW renewable energy programme that will progressively add clean energy capacity to the grid. As a key enabler of renewable energy integration, the Vunumoya MTS strengthens transmission capacity, supports grid modernisation and contributes to a more diversified, secure and lower-carbon energy system. The project demonstrates the value of collaboration between Eskom, NTCSA and private-sector partners in advancing South Africa’s energy transition while supporting long-term economic development in Mpumalanga. IMPACT PATHWAY: R1 billion grid investment, operational MTS, renewable energy connection, stronger grid, lower-carbon energy system and Mpumalanga development. 1 Grid readiness and 2 Renewable energy 3 Clean energy reliability integration scale-up Fully energised and integrated 155MW enabled early Pathway to 900MW Operational and integrated First wind energy from Umbhila Programme will progressively into the national grid, Emoyeni One can feed into the add further renewable capacity strengthening grid reliability. system ahead of schedule. to the grid. 4 Infrastructure value 5 Regional economic 6 Just Energy Transition chain uplift contribution support 400kV, 132kV and 500MVA Mpumalanga energy future Energy security plus decarbonisation Grid infrastructure creates Supports Mpumalanga’s capacity for future feeders continued role in South Africa’s Supports lower emissions while and transformers. economic and energy future. maintaining energy security and socio-economic development. RESULTS ONLY: Strategic grid infrastructure enabling a diversified, secure and lower carbon energy system. 67 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued We have experienced challenges relating to coal which include criminal activity, affecting our operations and OUR CUSTOMERS ELECTRIFICATION reliability of supply; deterioration of the plant asset damage due to inconsistent coal quality from coal suppliers; Meeting customer needs remains fundamental to our We advance universal access to electricity through the and swapping out of high-quality coal for inferior coal. To guarantee that the suppliers are delivering a quality mandate and the sustainability of the electricity supply Integrated National Electrification Programme (INEP), service, our coal strategy focuses on coal quality initiatives at specific sites and provide assurance that the coal industry. We continue to support universal access using grid and off-grid solutions where appropriate. quality paid for from source is the same coal quality received. We are focusing on automating all processes to electricity through grid and off-grid electrification By March 2026, INEP Electrification had connected related to coal management to address efficiencies and prevent fraud, crime and corruption. We have partnered initiatives while working to provide a reliable and 6.2 million customers since 1991, with 465 947 with Vodacom to implement a coal automation system to increase visibility in the coal value chain and manage affordable supply to households, municipalities, households connected between FY2022 and FY2026. the quality and quantity of coal delivered to our power stations via conveyor belts, rail and trucks at one of the businesses and industry. We focused on expanding Most new connections support growth, while solar stations. We have engaged the services of the relevant law enforcement agencies and competent private security access, enhancing customer value, supporting PV installations expanded access in areas not easily outfits to deal with coal security matters. economic activity and addressing the financial reachable by the grid. The declining connection pressures affecting the sector. numbers and related capex investment reflect the reduced backlog as universal access moves closer to being achieved. Over the five-year period, R7.89 billion in capital expenditure supported the delivery of household connections. Households connected Capex invested 114 800 102 590 2022 R1.5bn 97 948 83 031 2023 R1.8bn 67 578 2024 R2.0bn 2025 R1.2bn 2026 R1.3bn 2022 2023 2024 2025 2026 Planned connections Planned capex 44 503 43 499 2027 R1.6bn 33 810 2028 R2.5bn 2029 R2.5bn 2027 2028 2029 According to the 2022 Census by Stats SA, over 94% of South African households have been connected to the grid since 1994. The Energy Action Plan aims to reach 97% universal access by 2030 through on-grid connections, with remaining access provided through off-grid solutions. Where terrain constraints or network limitations made grid connection difficult, solar PV solutions were used to expand access. 68 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued ease cost-of-living pressures, improve access to In FY2026, Eskom brought electricity to remote communities where terrain Project Province Connections essential energy services and enable communities to and network constraints had placed the grid out of reach. Off-grid and solar PV participate more fully in daily social and economic solutions reached households across five provinces, a decisive step on the path to Evaton Gauteng 87 activities. universal access. Bulutshane Mpumalanga 24 FREE BASIC ELECTRICITY (FBE) KwaPhundulwane Limpopo 14 Through the Free Basic Electricity programme, 2 119 Mavhete and Madimbo Limpopo 1 933 we support qualifying indigent households with a Households connected via off-grid solar in FY2026 monthly allocation of 50kWh of free electricity to Nonieput Northern Cape 61 help meet essential household needs. The programme is delivered in partnership with municipalities, which identify eligible households through their indigent policies and enable registered customers to claim Madimbo and Mavhete Enkovukeni their monthly benefit. Limpopo KwaZulu-Natal In some municipalities, households qualify for a 100% FBE allocation while in others it is only 50kWh as per the policy or an additional top-up called Municipal funded FBE (MFFBE) is provided. The free electricity is given on the 1st of every month. Some municipalities give different top-up options or free kWh units. 571 589 A 500kW solar PV plant with battery storage, the first of its kind,now powering over 1 933 Enkovukeni, located between the ocean and the protected Kosi Lakes, has long faced isolation due Configured FBE beneficiaries Limpopo connections. to it challenging terrain and lack of bridge access. Community members rely on walking through the lakeor using small boats for daily activities. Through Eskom’s INEP programme, electrification of 493 523 54 households has been completed, with power expected to be switched on in Q2 FY2027 Beneficiaries that collected pricing measures. The trend highlights the strategic By year end, outstanding municipal debt had grown ELECTRICITY SALES AND REVENUE Revenue increased by approximately 4% from R340.9 importance of strengthening customer growth, to R111.6 billion, up from R94.6 billion in FY2025, 86.97% billion in FY2025 to R354.7 billion in FY2026, reaching electrification and demand stimulation initiatives to with projections indicating a potential increase to Average national collection rate its highest level over the five-year period. Electricity sustain long-term revenue growth. about R358 billion by 2031, assuming capital growth sales volumes declined by approximately 6%, from is curbed and does not exceed the assumed tariff Customers can collect their FBE when purchasing 189.7TWh to 178.0TWh in FY2026. The trend MANAGING MUNICIPAL DEBT path. Resolving the municipal debt issue is critical to electricity on their first transaction of the month or by demonstrates a continued decoupling of revenue Municipalities account for about 44% of electricity improving cash flow and ensuring long-term financial using a mobile service. Although households may be growth from sales volumes, with tariff increases sales, yet persistently low payment rates and rising sustainability for the business. The rate of capital configured to receive FBE, not all customers collect and revenue management measures offsetting unpaid accounts significantly undermine our revenue growth has slowed marginally from the previous their allocation every respective month, as some use lower demand volumes. Over the five-year period, and financial stability. Despite implementing a multi- financial year, largely due to improved performance alternative energy sources for cooking and heating or revenue grew by approximately 43%, while sales pronged strategy, including negotiated payment from the Metros. Municipal capital payment levels purchase sufficient electricity to last for more than volumes declined by approximately 10%, highlighting plans, legal action, intergovernmental collaboration improved to 89.7% (FY2025: 88.9%). one month. By improving awareness and access to the the changing operating environment and customer and targeted support for struggling municipalities, benefit, we continue to help more eligible households demand profile. and, more recently, distribution agency agreements RESPONDING TO OUR CUSTOMER NEEDS make use of the support available to them while (DAAs) arrear municipal debt continues to escalate. We recognise that reliable and affordable electricity strengthening inclusive access to electricity services. Despite a decline in electricity sales volumes in Municipal payment challenges remain a systemic risk plays an important role in improving quality of life, Communications and awareness campaigns are also FY2026, the increased revenue reflects the impact of for the entire electricity industry. particularly for vulnerable households. Through used to encourage customers to collect their FBE tariff adjustments, improved revenue collection and targeted customer support programmes, we help allocations. 69 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Our Social Footprint continued BRINGING SERVICES DIRECTLY TO COMMUNITIES To bring services closer to customers, we are strengthening practical and accessible support channels that respond to customer needs where they are. The Dx Hub on Wheels is one example of how we are improving convenience, visibility and responsiveness by taking key customer services directly into communities. We are committed to improving access, affordability and service delivery, particularly for households and communities that need support. Through continued collaboration, customer-focused improvements and strengthened operational processes, we aim to make our services more accessible, responsive and inclusive. We will keep working to ensure that our customers are reached, essential needs are supported and our contribution helps build a more reliable, affordable and inclusive electricity future. Dx HUBS ON WHEELS Improving customer accessibility remains central to our customer service strategy. During the year, we activated the Hubs on Wheels initiative, deploying mobile customer service units directly into communities to make services easier to access and strengthen engagement with customers. This initiative extends service reach beyond traditional channels, offering a more responsive, convenient and customer-focused experience. The mobile hubs assist with meter and account queries, new electricity connections, self-service channel guidance, and customer education on electricity safety and energy efficiency. SOCIAL REFLECTIONS • We continued to create shared value by advancing human capital development, occupational health and safety, employee wellbeing, stakeholder engagement and socio-economic transformation. • We invested in training and skills development, expanded mental health and wellness support and maintained a strong focus on Zero Harm and workforce resilience. Onboard workspace Onboard consultation • We progressed a people-centred just energy transition through workforce transition, community development and repowering initiatives. • Through corporate social investment, electrification, free basic electricity support and clean energy programmes, we improved access to essential services and supported vulnerable households. Electric Solar panels Battery storage • We also advanced localisation, supplier and enterprise development, creating opportunities for Zero-emission drivetrain Roof-monitored generation Onboard energy reserve SMMEs, communities and local economies. 70 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Research and Innovation Innovation continues to be a defining feature of OUR APPROACH TO RESEARCH AND our future success. Digital technologies, artificial INNOVATION intelligence, predictive analytics, smart metering, We position research and innovation as strategic enablers energy storage and modern grid solutions are of reliability, environmental performance and long-term increasingly critical to improving reliability, enhancing sustainability. To this effect, we deliberately balance customer service, reducing losses and supporting research effort across three complementary horizons: the energy transition. Our focus is not simply on an operational focus (approximately 60%) on energy adopting technology, but on using innovation to solve availability, emissions and network reliability indicators; real challenges and create meaningful value for our an energy transition focus (approximately 30%) on stakeholders. renewables and newer technologies for business sustainability; and a futuristic focus (approximately 10%) on emerging utility-sector technologies. Operational Energy transition Futuristic 7 60% 30% Our Approach to Research and Innovation 10% Building the Next Generation of Energy Talent Improve operational performance Enhance transition to renewables Research on cutting edge (EAF, emissions, SAIDI, SAIFI, and newer technologies to achieve technologies related to the system minutes) business sustainability energy sector Note: circle size reflects the relative weighting of each focus area As we transition, our research focus is on building an evidence base for a secure, affordable and sustainable energy future – currently through the following five themes: Transformative digital and AI systems Integrating advanced digital technologies and AI to enhance energy system operations and decision-making. Transformative Digital and AI Systems, seeks to leverage AI capabilities to improve the efficiency, availability and reliability of our power ecosystem through: • Enterprise-wide Digital Foundations – Digital Transformation roadmap establishes foundational enterprise- wide digital infrastructure for improved operational efficiency. • AI for Network Management – AI-driven network management optimises grid operations through data analytics and intelligent decision-making. • Digital Substations and Twins – Digital substations and digital twins enable virtual monitoring and advanced asset performance tracking. • AI-enabled Grid Stability – AI applies analytics and machine learning to manage complexity and ensure grid stability in dynamic power systems. 71 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Research and Innovation continued more accurate management of PV output and the been enhanced through the supply of materials, Reliable and resilient grid infrastructure Decarbonised energy supply beneficial use of ash), to operational reliability and strengthening the national pipeline of energy Ensuring grid stability and resilience through Targeting reduction of carbon emissions by network safety (through pre-commissioning testing engineers, scientists and technicians. upgraded infrastructure and advanced monitoring researching cleaner and renewable energy of relays, renewables and grid-forming inverter technologies. technologies. controllers) and to cost-effective grid expansion THE ESKOM POWER SERIES (25 BOOKS) (through HVDC-related research supporting Preserves technical expertise from seasoned Reliable and resilient grid infrastructure, focuses on Decarbonised energy supply seeks to introduce professionals and makes it accessible to younger NTCSA). They also illustrate the connection between supporting expansion and strengthening efforts to technologies that support the just energy transition. engineers, technicians, scientists and other technical research and innovation and the environmental and improve grid stability and access: • Emissions reduction roadmap – Focuses on legal infrastructure priorities as disclosed in this report. personnel. Several of the books in the series serve as • Grid expansion and reinforcement – Transmission and economic abatement measures to reduce official textbooks at universities and are sold globally. Development Plan focuses on long-term grid emissions from the existing power fleet effectively. Lethabo Soiling Station expansion and reinforcement to support growing • Carbon capture and storage – Explores carbon These platforms complement the human capital, Allows quantifiable assessment of soiling impact on bursary and youth-development initiatives described electricity demand. capture, utilisation and storage as a transitional photovoltaic (PV) performance, enabling proactive in the Social chapter and reinforce Eskom's • Advanced transmission technologies – HVDC and solution to lower carbon intensity in energy supply. optimisation of Eskom’s PV output. contribution to SDG 4 (Quality Education) and SDG HTLS technologies increase transfer capacity and • Clean coal and HELE technology – Addresses efficiency in electricity transmission. thermal generation efficiency improvements and 9 (Industry, Innovation and Infrastructure), positioning emissions reductions via clean coal and high- Ash Beneficiation (Roadworks) capability development as an integral element of a Just • Voltage control and stability – FACTS and efficiency low-emission technologies. Enables lower-cost road construction using coal Energy Transition rather than as a separate activity. DSTATCOM initiatives improve voltage control and network stability in transmission and • Long-duration energy storage – Includes enabling ash, positively impacting communities while distribution. technologies for firm, low-emission power supply minimising Eskom’s ash management costs. • Infrastructure Resilience and Life Extension – through innovative long-duration energy storage Asset life extension and grid resilience strategies systems. Real-Time Dynamic Simulator enhance performance and protect against climate Enables the testing of equipment such as and cyber risks. Markets, customers and new business models protection relays, renewable energy resources and Exploring evolving markets, customer engagement controllers of grid-forming inverters before they System flexibility and storage and innovative business models for the energy are commissioned. Addressing energy storage solutions and flexible sector. system operations to adapt to changing demand High Voltage Direct Current (HVDC) and supply. Markets, customers and business models, will support penetration of electric vehicles and support market Enables NTCSA to conduct research and practical System flexibility and storage, aims to introduce reform to increase customer satisfaction: experiments to optimise designs and build cost- microgrids, BESS and other technologies to make our • Energy market design and reform – Focus on effective transmission lines by considering HVDC. power ecosystem more flexible and resilient: market design and reforms to enable effective • Battery energy storage systems – BESS roadmap deployment of energy solutions within institutional BUILDING THE NEXT GENERATION OF covers technologies for both grid-scale and frameworks. ENERGY TALENT distributed energy storage solutions enhancing • e-Mobility and EV charging – Explores new Long-term innovation depends on people. Our system flexibility. load types and flexibility opportunities through research efforts place strong emphasis on knowledge • Renewable integration and technologies – e-mobility and electric vehicle charging transfer and upskilling, particularly of the youth, Roadmaps focus on integrating variable renewable infrastructure development. through the following flagship platforms. energy sources while maintaining grid stability and • Tariff design and customer participation – Initiatives reliability. ESKOM POWER ENGINEERING PROGRAMME focused on designing tariffs and encouraging customer participation for new revenue and (EPEP) AND TERTIARY EDUCATION SUPPORT • Microgrids for resilience – Microgrids support localized electrification and resilience especially in service models. PROGRAMME (TESP) These programmes collaborate with Universities, constrained or remote areas. We have successfully implemented initiatives to Universities of Technology and Technical and • Grid-forming inverter resources – Initiatives support the business in achieving its strategic Vocational Education and Training colleges. target enabling non-synchronous inverter-based objectives. These demonstrate how applied research Through them, training of lecturers and facilitators resources to provide essential grid services and contributes to environmental performance (through has been undertaken and academic facilities have stability. 72 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Looking Ahead – Building a Sustainable and Resilient Future Our FY2026 sustainability performance reflects continued progress in strengthening governance, environmental stewardship and social impact, with key advances in ESG integration, resource efficiency, climate transition initiatives, skills development and stakeholder engagement. While these achievements enhance organisational resilience and long-term value creation, challenges remain in environmental compliance, municipal debt, fraud and theft, ageing infrastructure, climate-related risks and workforce wellbeing. Sustained focus is required to strengthen accountability, accelerate decarbonisation and climate resilience, improve environmental performance and advance a Just Energy Transition that delivers inclusive, equitable and sustainable benefits for employees, communities and South Africa. 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 73 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information ABC Supplementary Information ABBREVIATIONS AECI African Explosives and Chemical ESG Environmental, Social and Governance King V TM King V Report on Corporate REIPPPP Renewable Energy IPP Procurement Industries EQHI Eskom Quality Health Index GovernanceTM for South Africa, 2025 Programme AI Artificial Intelligence EV Electric Vehicle KPI Key performance indicator R&D Research and Development AQO Air Quality Offsets EVP Employee value proposition LCs Legal Contraventions R&R Repowering and Repurposing B-BBEE Broad-Based Black Economic EWAP Eskom Women Advancement LTIR Lost-time injury rate (employee) RT&D Research, Testing and Development Empowerment Programme MES Minimum Emission Standards RFP Request for proposal BESS Battery Energy Storage System EWIP Eskom Women in Power Programme MFFBE Municipal Funded Free Basic Electricity SAIDI System Average Interruption Duration BYO Black Youth-Owned Exco Executive Management Committee MRV Monitoring, Reporting and Verification Index BWO Black Women-Owned FACTS Flexible AC Transmission Systems MW Megawatt SAIFI System Average Interruption Frequency CAPEX Capital Expenditure Index FBE Free Basic Electricity NDC Nationally Determined Contribution CCUS Carbon Capture, Utilisation and Storage SASB Sustainability Accounting Standards Board FBS Failure of Business Systems NDP National Development Plan CDP Carbon Disclosure Project SCOA Standing Committee on Appropriations FGD Flue Gas Desulphurisation NEDCSA National Electricity Distribution CFL Compact Fluorescent Lamp Company of South Africa SDGs United Nations’ Sustainable FY Financial Year Development Goals CMIP6 Coupled Model Intercomparison HELE High-efficiency, low-emission NERSA National Energy Regulator of South Project Phase 6 Africa SDL&I Supplier, Development, Localisation and GCE Group Chief Executive Industrialisation CO2e Carbon Dioxide and Carbon Dioxide NGO Non-governmental Organisation equivalent GHG Greenhouse gas SED Socio-economic development NT National Treasury CSI Corporate Social Investment GRI Global Reporting Initiative SES Social, Ethics and Sustainability NTCSA National Transmission Company of Committee CSIR Council for Scientific and Industrial Gx Generation South Africa Research Long Duration Energy Storage SF6 Sulphur hexafluoride LDES NO2 Nitrogen Dioxide CSR Corporate Social Responsibility Memorandum of Understanding SHEQ Safety, Health, Environment and Quality MOU NOx Oxides of Nitrogen CSD Central Supplier Database High-temperature, low-sag SMME Small, Medium and Micro Enterprise HTLS OE Organisational Effectiveness DAA Distribution Agency Agreement High-voltage direct current SO2 Sulphur dioxide HVDC OEM Original Equipment Manufacturer DEE Department of Electricity and Energy Hazard Identification and Risk SOC State-owned company HIRA O3 Ozone DEI Diversity, Equity and Inclusion Assessment SOx Oxides of Sulphur OHS Occupational Health and Safety DFFE Department of Forestry, Fisheries and HOWs Hubs on Wheels STEMI Science, technology, engineering, PCB Polychlorinated Biphenyl mathematics and innovation the Environment IFRS International Financial Reporting Standards PFMA Public Finance Management Act TDP Transmission Development Plan DMWG Disaster Management Working Group INEP Integrated National Electrification PM Particulate matter TESP Tertiary Education Support Programme DOI Declaration of Interest Programme PM2.5 Particulate matter with a diameter of TSO Transmission System Operator DSTATCOM Distribution Static Compensator 2.5 micrometres or less IPCC Intergovernmental Panel on TWh Terawatt-hour Dx Distribution Climate Change PM10 Particulate matter with a diameter of EAL Eskom Academy of Learning 10 micrometres or less UNFCCC United Nations Framework Convention IPP Independent power producer/s on Climate Change EAF Energy Availability Factor IRP Integrated Resource Plan POP Persistent Organic Pollutant UNGC United Nations Global Compact ECD Early Childhood Development IR Integrated Report PRT Provincial Resilience Teams YES Youth Employment Services ED Enterprise Development IT Information Technology PV Photovoltaic YTD Year to Date EDP Executive Development Programme JET Just Energy Transition RCP Representative Concentration Pathway ZLED Zero Liquid Effluent Discharge EPEP Eskom Power Engineering Programme King IV TM King IV Report on Corporate RDP Reconstruction and Development ESC Eskom Steering Committee GovernanceTM for South Africa, 2016 Programme ESDEF Eskom Development Foundation RE Renewable energy 74 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation 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 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 FY2026 is available at https://www.eskom.co.za/investors/integrated-results/ 75 ESKOM HOLDINGS SOC LTD Sustainability report 2026 Our Reporting Suite and Approach Governance Environmental Management Responding to Climate Change Enabling a Resilient Low-Carbon Energy Future Our Social Footprint Research and Innovation Supplementary Information www.eskom.co.za