Sasol Climate Change Report 2022 - Book - Page 39
INTRODUCTION
OUR FUTURE SASOL STRATEGY
RISKS AND OPPORTUNITIES
EFFECTING A JUST TRANSITION
GOVERNANCE
DATA AND ASSURANCE
CREATING SHARED VALUE THROUGH A JUST TRANSITION
Sasol’s just transition vision is a shared value proposition comprising an inclusive transformation of our business,
people and society, as we decarbonise and transition to a thriving Future Sasol.
We recognise that our decarbonisation
pathways to deliver on our 2050 net zero
ambition will have an impact on jobs, on the type
of employment opportunities and livelihoods within
South Africa, in particular.
As we implement our decarbonisation programmes,
the transition to sustainable carbon sources and
green hydrogen will have a direct impact on our
workforce, communities and supply chains
associated with our coal value chain. Careful
consideration and planning formed part of the
emission-reduction roadmap development work
to limit negative social and economic impacts in
the period to 2030. However, as we accelerate the
introduction of gas and green hydrogen, job
opportunities in our coal value chain will be impacted
post-2030. This will also introduce the need for
low-carbon skills and competencies. Based on our
current roadmaps and net zero pathways, the onset
of job impacts are anticipated to begin to emerge
towards the end of this decade.
Our just transition focus is biased towards our
South African operations, where the impacts of the
energy transition from fossil fuels are expected to
be most pronounced. In this regard, we are taking
a deliberate approach to avoid, where possible,
deterioration of the social and economic
environment in the areas in which we operate.
SDG 8 aims to promote sustained, inclusive and
sustainable economic growth, full and productive
employment and decent work for all. As a signatory
to the Global Compact, it is critical that we work to
build the resilience of our communities, including
our employees to support that those who rely on our
value chain are capacitated to not only sustain
livelihoods but also thrive as the transition unfolds.
To enable a just transition, fact-based decisions need
to inform our approach to co-create sustainable
response initiatives. Based on research conducted
by CSIR it is anticipated that the manufacturing,
wholesale and finance sectors would be amongst
those sectors likely to be most affected by Sasol’s
transition to low-carbon feedstocks. The impact is
expected to extend beyond Sasol’s business to other
supplier services across our value chain. To this end,
we are leveraging existing plans and programmes, as
a start, to identify no-regret opportunities, achieve
economies of scale and create greater value than
the individual just transition programmes alone
could deliver.
Our guiding principles
There are different best practice principles being proposed by various organisations, such as the International
Labour Organisation, World Benchmark Alliance and locally the Trade and Industrial Policy Strategies (TIPS).
Recently, TIPS formulated the three justices’ concept; namely distributive1, restorative2 and procedural justice3.
The TIPS justice concept is the underlying basis of the National Just Transition Framework developed by South
Africa’s Presidential Climate Commission.
Regardless of the best practice standard that we align ourselves with, there are common principles across the
various standards. We found that the principles should, at the very least, encompass developing just transition
plans that incorporate stakeholder views, enable the creation of new job opportunities and address social impacts.
The figure below provides an emerging view of our guiding principles that is informing our just transition approach.
Alignment
with policy
and regulatory
frameworks
25%
25%
13%
13%
6%
13%
6%
13%
15%
15%
3%
3%
5%
5%
(Source: Just Energy Transition Parliament Webinar, CSIR, 2021)
Agriculture, forestry
Agriculture,
forestryand
andfishing
fishing
Mining
and
quarrying
Mining and quarrying
Manufacturing
Manufacturing
Electricity, gas and water
Electricity, gas and water
Construction
Construction
Wholesale and retail trade
Wholesale
and retail trade
Transport, storage and comms
Transport,
storageand
andreal
comms
Finance, insurance
estate
Finance,
insurance and real estate
General government
General
government
Community
social
Community social
Prioritising
impacted parts of
the workforce and
communities
Tracking
progress and
reporting4
As one of the major contributors to South Africa’s
GDP, Sasol remains committed to supporting
government to bring about change in the economy
that would unlock growth and enable development.
We are transitioning in a responsible manner and
are focusing on emerging opportunities, developing
skills of the future, as well as identifying and
mitigating adverse impacts in the areas in which
we operate.
Job creation
and decent
work
Contributions
from
Mpumalanga
EconomicSectors
Sectors
Contributions
from
Mpumalanga
Economic
4% 4%
3%3%
4% 4%
Aligned with Future
Sasol strategy and
our roadmaps
SASOL’S
EMERGING JUST
TRANSITION
PRINCIPLES
Targeted skills
development5,
aligned with
Future Sasol
Ensuring
stakeholder
inclusivity
Leveraging
partnerships for
scale, impact
and pace
Data driven and
evidence-based
initiatives
1. Distributive justice: Equitable distribution of risks and responsibilities addressing direct impacts of transition.
2. Restorative justice: Redress of historical damages in order to rectify or ameliorate situations.
3. Procedural justice: Empowering workers, communities and small businesses so that they can define their own development and
shape how decision makers respond.
4. Key performance indicators (KPIs) will be developed to monitor progress.
5. Including upskilling, reskilling and redeployment.
SASOL CLIMATE CHANGE REPORT 2022 38
