Sasol Climate Change Report 2022 - Book - Page 33
INTRODUCTION
OUR FUTURE SASOL STRATEGY
RISKS AND OPPORTUNITIES
GOVERNANCE
DATA AND ASSURANCE
DECARBONISING OUR VALUE CHAINS (CONTINUED)
Scope 3
Our scope 3 emissions and accounting maturity
Sasol’s scope 3 reduction approach balances the need to improve baseline accounting and identify
reduction opportunities, with the implementation of longer-term portfolio changes and other
measures aimed at reducing emissions across our value chain.
We have made good progress on refining our baseline, developing a deeper understanding of these emissions and
identifying and delivering opportunities for scope 3 reductions. Our largest volume of scope 3 emissions originates from
Sasol Energy’s sold products (Category 11), predominantly in South Africa. Reducing these emissions requires fundamental
changes to our business model, which we are assessing in line with our net zero ambition by 2050. Our most significant
portfolio and product changes will be undertaken after 2030, when our hydrogen aspirations start to deliver.
2022 Scope 3 emissions
Purchashed Goods and Services
5,25
–
Capital Goods
Fuel- and Energy-Related Activities
0,25
Upstream Transportation
0,40
Waste Generated in Operations
0,08
– 0,002
Business Travel
Employee Commuting
0,04
Upstream Leased Assets
– 0,004
Downstream Transportation
0,27
Processing of Sold Products
–
Use of Sold Products
29,59
End-of-Life Treatment of Sold Products
–
Downstream Leased Assets
–
0,15
Franchises
Investments
1,53
0
Category1
1. Purchased Goods and Services
Mt CO2e
5
30
2022 (tCO2)
2021 (tCO2)
2020 (tCO2)
2019 (tCO2)
5 247 445
5 432 140
5 978 086
5 732 504
2. Capital Goods
N/A
3. Fuel- and Energy-Related Activities2
249 435
240 993
285 641
156 747
4. Upstream Transportation
402 850
478 974
449 465
533 494
77 345
70 159
78 608
87 390
5. Waste Generated in Operations2
6. Business Travel2
7. Employee Commuting
8. Upstream Leased Assets
9. Downstream Transportation
2 007
600
4 105
10 371
36 237
32 584
50 471
36 096
3 725
4 785
4 906
273 038
253 280
211 901
201 756
29 585 273
30 831 235
29 661 747
35 618 580
10. Processing of Sold Products
11. Use of Sold Products2
Baseline under development
13. Downstream Leased Assets
15. Investments3
Total
N/A
148 402
148 389
141 412
144 131
3 244
1 531 284
1 330 133
737 234
1 207 542
38 816 295
37 606 295
43 736 126
37 557 028
Highly Certain
Moderate Certainty
Low Certainty
Unknown
Several measures have been undertaken this year to strengthen the robustness of
our scope 3 accounting.
CATEGORY 1: CRUDE OIL EMISSIONS
REPORTING METHODOLOGY
• In 2021, we reviewed opportunities to enhance
reporting and reduce Category 1 emissions
(Purchased Goods and Services) associated with
crude oil sourcing.
• Oil fields differ in their carbon intensity and
offer potential optimisation opportunities
depending on the crude oil source. This year, we
disaggregated the carbon intensities of the crude
oil we purchased according to the specific oil field
sources and marketable crude oil names (MCONs).
This has enabled us to update our current
methodologies and establish a more accurate
baseline for reporting Category 1 emissions,
which we intend reviewing annually. We have also
used the opportunity to identify interventions
to reduce emissions from crude oil shipping
(page 33).
CATEGORY 11: EMISSION FACTORS
FOR ENERGY PRODUCTS
• Our Category 11 emissions (Use of Sold Products)
have traditionally been calculated based on
default emission factors from the UK Department
of Environment, Food and Rural Affairs
(DEFRA). As part of our scope 3 programme,
we determined Sasol-specific emission factors
for a selection of representative energy products
based on the measured carbon content of the
product. We used these Sasol-specific factors to
update our Category 11 emissions for the relevant
energy products in the current reporting cycle.
CATEGORY 11: DEVELOPING A REPORTING
METHODOLOGY FOR LUBRICANT PRODUCTS
Not measured
N/A
12. End-of-Life Treatment of Sold Products
14. Franchises
Accounting
accuracy
Strengthening our scope 3 accounting
Not applicable
1. Explanation of data changes and further details on our calculation methodology are indicated in the Appendix pages 61 – 63. 2. Subjected to external assurance.
3. 2021 Category 15 data restated upwards due to accounting improvements, refer to page 63.
• Emissions from Sasol Energy’s lubricant products
have historically not been included in Category 11,
as these are predominantly used in non-energy
applications. This year, we undertook an internal
study to assess the end-of-life (EOL) uses of used
lubricants in South Africa. Preliminary results
show that a significant portion of these used
lubricants are collected by the Recycling Oil Saves
the Environment (ROSE) Foundation for re-use in
combustion applications.
SASOL CLIMATE CHANGE REPORT 2022 32
• We are developing a methodology to determine
the emissions associated with EOL combustion
and will accordingly develop a baseline for
future reporting. Although this is not expected
to materially change our Category 11 emissions
footprint, this approach is aligned with our drive
for transparency and the need to strengthen the
accuracy of baseline reporting.
CATEGORIES 1 AND 12: BASELINE ASSESSMENT
RELEVANT TO OUR CHEMICALS BUSINESS
• We have been working with cradle-to-gate
emission factors taken from commercial and
publicly available databases such as GaBi (Sphera).
In an effort to move from industry averages to
Sasol-specific emission factors, we are engaging
with our suppliers to obtain emission factors to
improve our accounting accuracy.
• In January 2022, Sasol Chemicals launched a
lifecycle assessment (LCA) project to improve
our understanding of GHG emissions linked to
the sourcing of aluminium (scope 3, category 1)
and the production of alumina (scope 2).
Preliminary results indicate that these emissions
had previously been overestimated.
• Category 12 emissions relate to emissions at
the EOL of sold products, which is of relevance
to Sasol Chemicals. We are working to develop
a sound baseline for these emissions, which is
currently under review.
• The complexity of accurately determining the
fate of thousands of products sold into an even
greater number of applications and countries has
been challenging. Through peer benchmarking,
we identified the World Business Council for
Sustainable Development methodology as
being the most appropriate for undertaking
these calculations. The calculation utilises the
product’s carbon content and region-specific
disposal data to estimate emissions.
• Information was also brought to light leading to
the updating of two key assumptions, namely
(1) the need for the allocation of sold products
to destination countries to be based on actual
sales data and (2) the need for product durability
to be in accordance with the United States
Environmental Protection Agency (EPA).
