Sasol Climate Change Report 2022 - Book - Page 22
INTRODUCTION
OUR FUTURE SASOL STRATEGY
RISKS AND OPPORTUNITIES
GOVERNANCE
DATA AND ASSURANCE
IMPLEMENTING THE FUTURE SASOL STRATEGY (CONTINUED)
REDUCE, TRANSFORM and SHIFT
Our planet metrics
Metrics were established through a series of external benchmarks and internal work to derive targets that are
challenging, achievable and define Future Sasol.
Business
Sustainability capex1
Energy and
Chemicals
Scope 3 emissions
% renewable electricity7
–
63,0 MtCO2e (2017)4
Energy3
Scope 1 and 2 emissions
Point of departure
Chemicals
1,1 MtCO2e (2017 Eurasia)
1,7 MtCO2e (2017 North America)5
35,6 MtCO2e (2019)
(201
Energy6
Chemicals
To be confirmed (TBC)
2026
Milestone
2030
Target
2050
Ambition
–
10 – 15%2
Majority
-5%
-30%
Net zero
-20%
-30%
Net zero
–
-20%
Net zero
Scope 3 baseline development underway
Energy
–
40%9
Chemicals8
–
100%
80%9
100%
Up to 2025
• Progress Lake Charles to higher
value creation
2025 to 2030
Resetting
Sasol
• Sasol 2.0 targets met
Transitioning
Sasol
Laying a foundation
for longer-term
sustainability
• Strengthen balance sheet
and re-commence dividends
• Create leadership positions in
priority energy and chemical
customer segments
• Develop leadership role in the
emerging green hydrogen
economy in Southern Africa
• Incubate and scale-up new FTbased sustainability businesses
TRANSITION
RESET
1.Sustainability capex refers to capital associated with sustaining production through lower-carbon feedstocks, transforming the existing portfolio and investments
in new sustainable businesses.
2.Projected at ~ R25 – R35 billion (bn) cumulative total capital up to 2030, inclusive of maintaining current gas feedstock and roadmap costs (Transform capital),
which is also dependent on the type of gas partnership construct implemented.
3.
Excludes Natref which will be addressed together with our JV partner TotalEnergies.
4.
Re-baselined our 2017 target base year, removing divestments and including methodological changes.
5. 1,1 MtCO2e baseline + 0,6 MtCO2e for Lake Charles Chemical Project (LCCP) growth.
6.Scope 3 emissions relates to sold energy products only (Category 11), including Natref’s products.
7.Targets for Sasol Energy and Chemicals cover >70% total electricity demand for the Sasol Group.
8.
Renewable electricity relates to purchased external power and excludes our operations in Nanjing and self-generation.
9.Excluding load factor and metric relates to the 1 200 MW renewable electricity roadmap requirement.
10. Investments in new and emerging technologies and businesses, with a strong potential to support Sasol’s long-term decarbonisation ambitions and growth strategy.
Ramping-up
sustainability
investments and
leveraging current
assets to scale-up
sustainable
opportunities to
meet the 30% target
We are accelerating investment in new value pools to strengthen our competitive advantage where we have
an established market leadership position. This allows us to maintain a diversified portfolio that is resilient.
Growth and the establishment of sustainable businesses through Sasol ecoFT and the Corporate Venture
Capital Fund10 is progressing, with several key partnerships established to develop SAF production facilities.
To reduce our capital outlays and balance risk exposure, we intend partnering through co-ownership models.
We have prioritised the areas that have the most material impact on the delivery of our strategy and that affect
our business performance. Our material matters (see IR pages 36 – 39) are linked to KPIs, against which
we monitor our performance. This helps us to easily identify problem areas, as well as opportunities. Our
strategy also enables us to nurture and grow new sustainable opportunities, potentially upscaling these over
time. We continuously refine and prioritise these opportunities so that we accelerate those options with the
greatest potential.
Since 2021, we have been focusing on enhancing our capabilities to deliver on our ambitions. We have identified
priority capabilities that enable the Future Sasol strategy. We are developing a plan to address skills, business
systems and technology choices, as well as a process that delivers capabilities within specific functions or
businesses.
We have committed to deliver the Future Sasol strategy over three distinct time horizons and phases: reset,
transition and reinvent (see IR page 11 and below). Our reset phase is well underway with some of the
deliverables close to being fulfilled ahead of schedule. Ramp up of LCCP and delivery of Sasol 2.0 is progressing
well. Our strengthened balance sheet is a testament to our commitment to achieve our financial goals.
A profitable business enables us to fund strategic initiatives and create leadership positions in priority areas
within the businesses’ customer segments.
• Develop circular chemicals
solutions (customer-led
innovation)
• Shift to natural gas as a
transition feedstock and
integrate renewable energy
• Continue scale-up of FT-based
sustainability businesses
• Continue chemicals portfolio
shift to higher-margin specialty
chemicals
• Shift chemicals portfolio
to higher-margin
specialty chemicals
SASOL CLIMATE CHANGE REPORT 2022 21
2030 to 2050
Reinventing
Sasol
REINVENT
Metric
Delivering net zero
ambition by 2050,
growing value by
re-purposing existing
assets and
participating in new
value pools
• Rapidly accelerate
decarbonising of assets
(options across gas, green
hydrogen and sustainable
carbon sources)
• Continue circular chemical
solution opportunities
• Intensify roll-out of FT-based
sustainability businesses
• Intensify chemicals portfolio
shift to higher-margin
specialty chemicals
• Bring Sasol ecoFT-based
sustainability businesses to
maturity
