Sasol Climate Change Report 2022 - Book - Page 52
INTRODUCTION
RISKS AND OPPORTUNITIES
GOVERNANCE
OUR FUTURE SASOL STRATEGY
DATA AND ASSURANCE
CLIMATE ADVOCACY AND POLICY (CONTINUED)
Advocacy activities
Inventory of our influences and how it links to our activities
Overview of
policy advocacy
activities
Climate change
policy areas of
engagement
COULD INCLUDE:
South African Carbon
tax
South African Climate
Change Bill
Just transition
EU Delegated Acts
Adaptation strategy
technical working groups
DIRECT POLICY ADVOCACY
INDIRECT POLICY ADVOCACY
CARBON TAX ENGAGEMENTS IN SOUTH AFRICA:
CARBON TAX ENGAGEMENTS IN SOUTH AFRICA:
Executives and technical teams participated in three meetings with National Treasury on the proposed 2022 Budget Review relating to the
carbon tax rates and its implications for our business, which, based on the current proposal and assuming minimal allowances, could
significantly impact our economic viability of the business and hinder the transition. Sasol reiterated support for carbon pricing
and emphasised that rapid hikes in the carbon tax rate without allowances and incentives, and which is out of sync with mitigation
potential, will hinder our transition rather than accelerate it. In addition, Sasol is participating in the Tax Law Amendment Bill consultation
process.
Participated with other BUSA members on three engagements with National Treasury on
the proposed 2022 Budget Review of the carbon tax rates and implications for business
in support of a just transition. Sasol reiterated support for carbon pricing
and emphasised that rapid hikes in the carbon tax rate without allowances and
incentives, and which is out of sync with mitigation potential, will hinder our transition
rather than accelerate it.
CLIMATE CHANGE BILL IN SOUTH AFRICA:
Technical teams and climate change specialists attended three Parliamentary briefings by the Minister of Forestry, Fisheries and the
Environment on the tabling of the Climate Change Bill to establish a legal framework for climate change management for South Africa.
• Carbon budgets: We undertook various engagements during the course of the year on allocating Sasol’s next carbon budget, including
engagements with DFFE and their consultants on the development of the mandatory petrochemical sector carbon budget methodology
to regulate GHG emissions.
BROAD CLIMATE CHANGE POLICY IN SOUTH AFRICA:
• Participated with other BUSA members in two meetings of the Parliamentary
Committee on Environment, Forestry and Fisheries.
• Participated with other CAIA members and the DFFE on the chemical sector’s carbon
budget methodology.
MEMBERSHIPS:
JUST TRANSITION IN SOUTH AFRICA:
Technical teams and climate change specialists attended the Just Transition PCC’s dialogues on the development of a Just Transition
Framework and various stakeholder consultations across the country.
• Technical teams engaged the DMRE on the Just Energy Transition Framework and its alignment with the PCC's Just Transition Framework.
EU DELEGATED ACTS:
Formal submissions were made to the European Commission. This was undertaken as part of the public consultation process in support of
EU recognition for FT-produced sustainable products to allow for a phased decarbonisation of Secunda towards our fossil-fuel-free vision.
Sasol’s executives and technical teams engaged various German government departments and the European Commission in Brussels to
indicate the importance of recognising a flexible GHG allocation methodology for co-processing fossil fuel and sustainable feedstocks in an
existing facility and to extend the use of industrial fossil CO2 feedstocks as sustainable carbon sources beyond 2035.
OTHER:
Participated in a South African National Treasury multi-stakeholder consultation on the Oil and Gas Draft Discussion Document which
sought to obtain views on the most appropriate tax regime for the Oil and Gas sector. In addition, support for transitioning South Africa to
a net zero economy was indicated through the use of gas as a lower-carbon transition fuel.
SASOL CLIMATE CHANGE REPORT 2022 51
• Roundtable on Sustainable Biomaterials (RSB): Participating in the Power-to-X
policy and SAF working groups to encourage the use of green hydrogen to produce
sustainable chemicals and fuels.
• Global Alliance Powerfuels (GAP): Contributed to a policy position advocating for
recognition of unavoidable CO2 from industrial facilities as eligible feedstocks for the
production of Renewable Fuels of Non-Biological Origin (RFNBOs), such as SAF.
• Hydrogen Council: No policy engagements have taken place thus far.
• Energy Council of South Africa: No policy engagements have taken place thus far.
• NBI: Participating in the Climate Pathways Study through various steering and
technical committees that are proposing pathways for achieving net zero in support
of the Paris Agreement.
• EP100: Participating in the initiative which encourages greater energy efficiency
uptake within business. Sasol has committed to a 30% energy efficiency improvement
by 2030, off a 2005 baseline.
