Sasol Climate Change Report 2022 - Book - Page 50
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
GOVERNANCE
DATA AND ASSURANCE
CLIMATE ADVOCACY AND POLICY (CONTINUED)
Advocacy
Our climate change advocacy position
Sasol engages with policymakers and collaborates
with trade associations to advocate our position on
matters that are critical to managing climate change
and our business operations. We advocate and engage
in public policy discussions, with a view to maintain a
balanced approach and endeavour to not compromise
the interests of our shareholders, employees,
customers and communities. There may be times
when our views diverge from those of our trade
association partners, in which instance we aim to
ensure our views are noted and recorded. We engage
in support of the Paris Agreement, development of
low and lower-carbon sectors such as green hydrogen,
renewables and gas, as well as the development of
a conducive policy and regulatory environment to
encourage climate action within the confines of our
national circumstances and need for a just transition.
We are committed to having an honest conversation.
This means sharing our perspective, listening to
others, respecting differences and working
collaboratively to find solutions. In all our climate
advocacy activities, we are committed to compliance,
transparency and accountability.
We rarely agree 100% with all trade associations
mandates, however we believe our annual trade
association review findings demonstrate our
approach to managing these divergences.
Sasol is a member of various industry associations that enables us to
improve our insight into a broad range of issues and facilitates the
exchange of knowledge and expertise. Governance requirements are
in place within the relevant industry associations to safeguard against
individual business positions dominating or advancing over others.
Managing relationships with industry associations are firmly embedded in
our governance and risk management processes, including within the
competition/anti-trust law compliance remit. We subscribe to key national
and international industry associations relevant to our business. In these
associations, we constructively and collectively pursue technical outcomes
and advocate for policy that relates to our respective businesses. Sasol
participates at different levels within an industry association, including
holding general memberships, chairing specific committees and sitting on
board committees. These associations provide a platform for the collective
voice of business and creates momentum to effect positive change.
Approach to managing our memberships
In instances where there is misalignment between an industry association’s
position and our climate change position, we voice our views clearly and
reserve the right to publicly communicate this position. We may even
consider termination should continued membership no longer be in Sasol’s
best interests. In light of our 2030 target and 2050 net zero ambition, we
have enhanced monitoring, assessment and disclosures on our alignment
with industry associations, by annually taking into account amongst others,
credible and publicly available third-party assessments on such associations.
SASOL CLIMATE CHANGE REPORT 2022 49
Recognising that an industry association’s view will not always accord with
ours, we also review the value-add of these memberships prior to joining,
during active membership and when renewal is due.
Other engagements with government
We believe over the years we have had a positive impact when engaging
with associations in supporting climate-related policy and regulatory
developments, including advocating in South Africa for an aligned carbon
budget/tax system and a climate change act, lifting renewable energy
limits, developing a green hydrogen strategy and related incentives and
supporting mandatory reporting of GHG emissions.
Sasol is an active attendee at the UNFCCC COP annual meetings. Since 2018,
we continue to co-sponsor the country pavilion for the annual COP
meetings and we will do so again this year for COP27. South Africa’s aim in
hosting a pavilion is to showcase the country’s climate change activities.
Establishing the Energy Council of South Africa
The South African energy sector is still heavily reliant on fossil fuels.
To enable a thriving and sustainable energy sector in South Africa, Sasol
played an instrumental role in the formulation of the Energy Council of
South Africa, with other like-minded organisations that recognise the
challenge and opportunities the energy transition brings given the
country’s national context.
The Energy Council of South Africa has set itself a mandate to play a
leadership role in South Africa’s energy sector, driving stakeholder and
policy alignment and assisting in addressing major issues in the energy
landscape for inclusive economic growth. The Council aims to advocate for
accelerated policy, regulatory reform and certainty across the energy sector
as the country transitions to a low-carbon economy. For further details,
access www.energycouncil.org.za.
