Sasol Climate Change Report 2022 - Book - Page 32
INTRODUCTION
OUR FUTURE SASOL STRATEGY
RISKS AND OPPORTUNITIES
GOVERNANCE
DATA AND ASSURANCE
DECARBONISING OUR VALUE CHAINS
Product labelling
Sustainable certification process
Sasol aims to progressively shift our product portfolio
from coal and more gas-based products to sustainable
low-carbon products through the introduction of
sustainable inputs such as renewable energy, green
hydrogen, biomass, CO2 from recycled industrial
processes and/or DAC.
To ensure that we can produce sustainable products,
a rigorous certification process will need to be in place,
verified by an accredited body. This sustainable
certification process is termed ‘product labelling’.
Such a process will allow us to validate our product
claims, meet market or customer requirements and
make credible emission-reduction claims (refer to
figure alongside).
Product labelling requirements can differ according
to market and customer needs. Some markets, like the
EU, have stringent certification requirements to ensure
compliance with mandated performance or
environmental targets such as renewable energy
targets stipulated in the EU RED. Other markets or
customers use certified products to make credible
voluntary claims. Underpinning product labelling is an
assessment of the lifecycle impact of a product, with
a focus on the product’s overall GHG impact or carbon
intensity. This is a key market entry requirement in the
renewable fuels sector and impacts the production of
green hydrogen, biogenic and PtX-derived SAF.
We are working with globally recognised sustainability
certification bodies, including the RSB and the ISCC.
To this end, the RSB is conducting sustainability
assessments for some of our green hydrogen projects,
specifically to understand market access requirements
under recognised standards. Through our certification
of bio-ethylene, our ambition of integrating larger
quantities of bio-based and circular raw materials
is being realised.
We joined RSB to expand our knowledge base and
contribute to the development of related policy.
So far, we have defined the required certification
criteria for Sasol’s products and have undertaken a
gap analysis between where we are today and where
we have to be to certify our sustainable products.
REGULATED MARKET – CERTIFY AGAINST
REGULATORY STANDARD3
YES
STARTING POINT:
DEFINE THE
PLAYING FIELD
END-MARKET
DESTINATION
Identify potential green products
to produce and a credible SB1 for
collaboration
Is the product sold into
a regulated market2?
MARKET ANALYSIS
NO
Agree on customer/market
criteria:
• GHG allocation methodology
• sustainability criteria
• SB preference
DEVELOP APPLICABLE
STANDARD
Work with SB to tailor existing
standards to specific context
(product and process)
Standard ratified through public
consultation process
BASED ON ENGAGEMENTS WITH GREEN PRODUCT LABELLING BODIES THE FOLLOWING PROCESS INSIGHTS ARE EMERGING
TRADE AND CLAIM
AUDIT
Certificate holder can claim to hold
a globally accepted sustainable
product and display the certificate
in all external communications
Prepare and conduct audit:
• establish internal audit team
• CB conducts audit and
identifies any corrective
actions
• once corrective actions are
implemented the CB awards
the certificate5
Certificate to be surrendered to
authorities in compliance markets
CERTIFICATION BODY
AGREEMENT AND SB
REGISTRATION
Appoint a CB4 and arrange for audit
Register CB with the SB, as part of
audit requirements
DESIGN AND IMPLEMENT
SUSTAINABLE PROCESS
TO MEET MARKET AND
SB REQUIREMENTS
Execute project and start producing
sustainable products aligned with
standard criteria
GLOSSARY OF TERMS
1. Standards Body (SB)
– develops the ‘rules of the
game’ using technical experts
2. R
egulated market – a market in which
product does not meet the prescribed
national standard it can still be traded,
but it will not be recognised towards
meeting national targets
3. Standard – documented agreement
containing technical specifications
or other precise criteria that must
be adhered to claim attributes of a
product or process
4. Certification Body (CB)
– an independent third party
that conducts the audit and
issues the certificate
5. Certificate/label – an electronic
document declaring compliance
to a specific standards
Product labelling against accepted standards is a key enabler for market access and to be eligible
for sustainable financing. Sasol’s first green certified bio-ethylene derivatives was produced in 2022,
with additional products advancing through our sustainable certification process.
SASOL CLIMATE CHANGE REPORT 2022 31