Sasol Climate Change Report 2022 - Book - Page 58
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
PERFORMANCE DATA (CONTINUED)
DATA AND ASSURANCE
GOVERNANCE
TCFD INDEX
Location of our aligned disclosures
TCFD recommendation
Place of disclosure
Page
FOOTNOTES
1.
Product – external sales – boundaries include product destined for sale to Sasol’s customers and do not include products utilised
or sold between the Sasol Group of companies. A decrease in production was noted for 2022 due to significant coal supply
shortages as a result of adverse weather conditions and operational challenges.
2. GHG emissions have been calculated and reported in accordance with the GHG Protocol (www.ghgprotocol.org) and the IPCC 2006
Guidelines. In our GHG measurements, we have included 100% of the emissions for the following JVs: Natref in South Africa and
Gas Sourcing and Operations in Mozambique. Data for those JVs where we do not have a significant influence or operational
control is not included. An external assurance provider has once again independently verified our direct and indirect emissions.
3. The sum of GHG emissions from CH4, N2O and CO2 (scope 1 only) are expressed as CO2e emitted and reported as direct scope 1 CO2e.
Our 2022 direct scope 1 CO2e emissions for Sasol Energy are significantly lower than 2021, attributed to lower production rates.
4. The increase in direct scope 1 carbon dioxide equivalent emissions from Mozambique is attributed to the inclusion of methane
reporting in 2022. The 2019, 2020 and 2021, Scope 1 Emissions for Mozambique have been restated to include additional data
in 2022.
5. Secunda emissions are presented in a regional view which includes the Secunda Operations site as well as smaller operations
located in Secunda. Scope 2 emissions for Secunda Operations have been re-baselined due to the Air Separation Unit (ASU)
divestment in 2021.
6. Sasol Energy’s scope 2 emissions over the past year were higher relative to 2021 due to increased purchased electricity use and
a higher grid emission factor for Eskom.
7. The sum of GHG emissions from CH4, N2O and CO2 (scope 1 and 2) are expressed as CO2e emitted and reported as total GHG (CO2e).
Although Sasol Energy’s scope 2 emissions increased in 2022 (see note 6), total scope 1 and 2 GHG emissions decreased in 2022,
attributed to reduced production rates.
8. The definition of GHG intensity underwent extensive internal review in 2022 and “total production” was decided on as a replacement
for product meant for external sale. This revised intensity provides insight into the total emissions per ton of product produced
irrespective of the final destination of these products. This provides a more representative view of site intensity, irrespective of
the nature of the operation. Total production values utilised for this calculation are based on operational management control and
is in line with our SD data reporting philosophy, which excludes subsidiaries and JVs, where Sasol has no management control.
Prior to 2022, Sasol reported GHG intensity based on total GHG (CO2e) per ton of production meant for external sale. Using
production meant for external sale provides insight into the amount of emissions per ton of saleable product, which is not
representative of upstream OMEs, such as Sasol Mining and Gas, Sourcing and Operations (Mozambique), which primarily provide
feedstock to other Sasol operating entities.
9. Data from operating entities impacted by divestments during the reporting year are excluded with effect from the date of divestment,
except when GHG target setting is impacted. As per the GHG Protocol, determination of GHG emissions have been restated from
2017, our baseline target year, to account for the divested units. While GHG data has been corrected for divestments from 2017, as
per National Energy Efficiency Strategy 2030 and ISO 50001 measuring principles, data for electricity purchased from non-renewable
sources does not exclude the divested units for 2019, 2020 and 2021. For scope 2 emission correlation with electricity purchased
from non-renewable sources, data excluding the ASU’s are 12 368 thousand GJ (2021); 11 242 thousand GJ (2020) and 11 411
thousand GJ (2019).
10. Based on Sasol's equity share in investments and aggregated by product type or sector.
GOVERNANCE – Disclose the organisation’s governance on climate-related risks and opportunities
a) Describe the Board’s oversight of climaterelated risks and opportunities.
Governing Climate Change: Our Board
Governance at a glance
IR
45
56 – 61
b) Describe management’s role in assessing and
managing climate-related risks and opportunities.
Governing Climate Change: Our Board
Managing Material Matters
IR
46
36 – 39
IR
13 – 15
30 – 35
STRATEGY – Disclose the actual and potential impacts of climate-related risks and opportunities on the
organisation’s business, strategy and financial planning where such information is material
a) Describe the climate-related risks and
opportunities the organisation has identified
over the short, medium and long term.
Risk management: the process we follow
Managing our Group top risks
b) Describe the impact of climate-related risks and
opportunities on the organisation’s business,
strategy and financial planning.
Risk management: the process we follow
Resilience of our portfolio
Capital allocation and green funding
Implementing the Future Sasol strategy
Incentivising climate management
Responding to climate change
c) Describe the resilience of the organisation’s
strategy, taking into consideration different
climate-related scenarios, including a 2°C or
lower scenario.
Resilience of our portfolio
Sasol’s climate change scenarios
16
16 – 17
Robustness testing against our scenarios to 2030
18 – 19
13 – 15
16
36
20 – 22
47
42 – 44
RISK MANAGEMENT – Disclose how the organisation identifies, assesses and manages climate-related risks
a) Describe the organisation’s processes for
identifying and assessing climate-related risks.
Risk management: the process we follow
Managing our Group top risks
b) Describe the organisation’s processes for
managing climate-related risks.
Risk management: the process we follow
Managing our Group top risks
c) Describe how processes for identifying,
assessing and managing climate-related risks
are integrated into the organisation’s overall
risk management.
Risk management: the process we follow
Managing our Group top risks
13
IR
30 – 34
IR
IR
13
31
13
30 – 35
METRICS AND TARGETS – Disclose the metrics and targets used to assess and manage relevant climate-related risks
and opportunities where such information is material
a) Disclose the metrics used by the organisation to
assess climate-related risks and opportunities
in line with its strategy and risk management
process.
Robustness testing against our scenarios to 2030
Our planet metrics
Performance Data: Natural Capital
The year in review
b) Disclose scope 1, scope 2 and, if appropriate,
scope 3 GHG emission and the related risks.
Performance Data: Natural Capital
The year in review
Decarbonising our value chains: Scope 3
c) D
escribe the targets used by the organisation to
manage climate-related risks and opportunities
and performance against targets.
Sasol at a glance
Our climate change journey
Snapshot of our approach
The year in review
Sasol’s commitment to climate change
Incentivising climate management
SASOL CLIMATE CHANGE REPORT 2022 57
SR
SR
18 – 19
21
68 – 69
5
68 – 69
5
32
2
3
4
5
8
47
