Sasol Climate Change Report 2022 - Book - Page 60
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
DATA AND ASSURANCE
GOVERNANCE
CA 100+ ASSESSMENT OF SASOL’S CLIMATE CHANGE RESPONSE
CA 100+ assessment
Sasol’s response
Page
Sub-indicator 2.1 The company has set a target
for reducing its GHG emissions by between 2036
and 2050 on a clearly defined scope of emissions.
Sub-indicator 2.2 The long-term (2036 to 2050)
GHG reduction target covers at least 95% of
scope 1 and 2 emissions and the most relevant
scope 3 emissions (where applicable).
Our ambition is to achieve net zero by 2050 for Sasol Energy
and Chemicals.
4, 6, 21
7
3 – 4, 6
6, 8
3 Medium term (2026 to 2035) GHG reduction target(s)
We have set emission reduction targets to reduce our
absolute scope 1 and 2 emissions by 30% by 2030 for the
3 – 4,
Sasol Energy and Chemicals Businesses.
6, 21
By 2030 we have a scope 3 target to reduce Category 11
emissions by 20%.
Targets cover material emissions representing 95% of scope 1
and 2 emissions.
4, 6, 21
Scope 3: Category 11 emissions is the most relevant of our
emissions and covered by a separate absolute 20% reduction
target by 2030 off a 2019 baseline.
Our 30% target by 2030 is a higher level of ambition, based on
available mitigation and science. Post 2030,we are aiming for
net zero.
6, 8
We are not fully aligned to 1,5°C in 2030 but are for the long
term.
4 Short term (up to 2025) GHG reduction target(s)
Sub-indicator 4.1 The company has set a target
for reducing its GHG emissions up to 2025 on a
clearly defined scope of emissions.
For the short term, we are aiming for a 5% emission reduction
in the financial year June 2025 to July 2026 for the Sasol
Energy Business and 20% reduction by the same time for the
Chemicals Business.
Targets cover material emissions representing 95% of scope 1
and 2 emissions.
We do not have a short-term scope 3 target, only a 2030 target.
Sub-indicator 4.2 The short-term (up to 2025)
GHG reduction target covers at least 95% of
scope 1 and 2 emissions and the most relevant
scope 3 emissions (where applicable).
Sub-indicator 4.3 The target (or, in the absence
of a target, the company’s latest disclosed GHG
emissions intensity) is aligned with the goal of
limiting global warming to 1,5°C.
Short term milestone targets are aligned with our medium
term target and long term Net Zero ambition.
We are not fully aligned to 1,5°C in 2030 but are for the long
term.
5 Decarbonisation strategy
Not
Assessed
Sub-indicator 5.2 The company’s
decarbonisation (target delivery) strategy
specifies the role of ‘green revenues’ from low
carbon products and services.
Not
Assessed
Sub-indicator 5.1 The company has a
decarbonisation strategy to meet its long and
medium-term GHG reduction targets.
Emission reductions (scope 1, 2 and 3) and roadmaps for 2030
and 2050 for our Sasol Energy and Chemicals businesses.
While the percentage contribution of each lever is not
explicitly indicated, GHG emissions covered, technology
choices and timing is clearly indicated to 2030. Post 2030 for
Sasol Energy, a flexible roadmap has been developed, which is
dependent on signposts materialising.
Our portfolio is shifting to growth of FT sustainable solutions
focusing on sustainable fuels and chemicals. We had our first
sales of sustainable product from Sasol Chemicals during 2022.
We have set targets for % renewable energy usage and have
set a sustainability capex target but no metrics have as yet
been set for green revenues.
Sub-indicator 7.1 The company has a
Paris-Agreement-aligned climate lobbying
position and all of its direct lobbying activities
are aligned with this.
Our climate advocacy position is outlined in this report, with
our main guiding principles.
Our climate advocacy position and policy is included which
supports the Paris Agreement.
Sasol has a climate advocacy policy position with key
principles outlined. Our advocacy is aligned to our roadmaps
and targets also cognisant of national circumstances where
we operate.
Sasol has climate-related advocacy positions in support of the
Paris Agreement, underpinned by responsible climate-related
principles. We use these to annually assess our associations for
alignment and this year we included third party assessments.
Sub-indicator 7.2 The company has
Paris-Agreement-aligned lobbying expectations
for its trade associations, and it discloses its
trade association memberships.
Sub-indicator 7.3 The company has a process to
ensure its trade associations lobby in accordance
with the Paris Agreement.
8 Climate Governance
Sub-indicator 8.1 The company’s board has
clear oversight of climate change.
Sub-indicator 8.2 The company’s executive
remuneration scheme incorporates climate
change performance elements.
Sub-indicator 8.3 The Board has sufficient
capabilities/competencies to assess and
manage climate related risks and opportunities.
21, 36
36
The Board has ultimate accountability for climate change.
Ms Muriel Dube is our climate champion on the Board with
delegated responsibility.
The Board’s SSEC has a delegated mandate to address
climate change matters for the company.
Our climate change targets are included in executive
remuneration schemes.
They are linked to our STI and LTI scorecards.
We appointed a climate champion to the Board in 2018. She
chairs the SSEC which has a delegated mandate on climate
change matters.
Our Board members undergo regular training on climate change
and wider sustainability matters regularly.
49 – 51,
55
51 – 54
49 – 51
45 – 46
4, 47
45
9 Just transition
4, 6, 21
4, 6
6, 8, 21
4, 6,
21, 23
Sub indicator 9.1 The company has made a
formal statement recognising the social impacts
of their climate change strategy – the Just
Transition – as a relevant issue for its business
Sub indicator 9.2 The company has committed
to Just Transition principles.
Sub indicator 9.3 The company engages with its
stakeholders on Just Transition.
Sub indicator 9.4 The company implements its
decarbonisation strategy in line with Just
Transition principles.
Not
Assessed
Sub-indicator 3.3 The target (or, in the absence
of a target, the company’s latest disclosed GHG
emissions intensity) is aligned with the goal of
limiting global warming to 1,5°C.
Page
Climate policy engagement
Not
Assessed
Sub-indicator 3.2 The medium-term (2026 to
2035) GHG reduction target covers at least 95%
of scope 1 & 2 emissions and the most relevant
scope 3 emissions (where applicable).
Sub-indicator 6.2 The company discloses the
methodology used to determine the Paris
alignment of its future capital expenditures.
Not
Not
Assessed Assessed
Sub-indicator 3.1 The company has set a target
for reducing its GHG emissions by between 2026
and 2035 on a clearly defined scope of
emissions.
Sasol’s response
We have allocated R15 – 25 billion cumulative capital
expenditure to be spent by 2030 on decarbonisation. In
addition, to our sustainability capital allocation, Sasol has made
a clear commitment to no investments in new coal reserves.
Our capital allocation framework is provided with key guiding
principles to progressively grow available capital
for transforming the businesses.
Not
Assessed
Scope 1 and 2 emission represents 95% of our emission
reduction target.
Scope 3 Category 11 is the most relevant category for Sasol
representing more than 80% of scope 3 emissions and
including Natref’s product slate.
Our ambition for net zero emissions by 2050 is aligned with
the goal of limiting global warming to 1,5°C.
Sub-indicator 6.1 The company is working to
decarbonise its future capital expenditures.
Not
Assessed
We have set a 2050 net zero ambition for Sasol Energy and
Chemicals businesses. Our net zero ambition includes scope 3 4, 6, 21
Category 11 which accounts for ~80% of total scope 3 emissions
Not
Assessed
Sub-indicator 1.1 The company has set an
ambition to achieve net-zero GHG emissions by
2050 or sooner.
Sub-indicator 2.3 The target (or, in the absence of
a target, the company’s latest disclosed GHG
emissions intensity) is aligned with the goal of
limiting global warming to 1,5°C.
2021 2022
6 Capital allocation alignment
1 Net zero GHG emissions by 2050 (or sooner) ambition
2 Long term (2036-2050) GHG reduction target(s)
Indicators and sub-indicators
Not
Assessed
2021 2022
Not
Not
Assessed Assessed
Indicators and sub-indicators
CA 100+ assessment
We recognise the need for just transition on our
decarbonisation pathway. Our Just Transition response
and approach is explained on the pages indicated.
We have developed just transition principles and a framework
to guide our approach and initiatives.
Sasol has provided guidance that our roadmap development
will incorporate stakeholder engagement.
We are leveraging our existing programmes and initiatives to
drive implementation of our just transition response. A just
transition roadmap will be configured to align with our
decarbonisation pathways.
38
38 –39
39
39
10 TCFD alignment
21, 36
Sub-indicator 10.1 The company has committed
to implement the recommendations of the TCFD.
Sasol has progressively been implementing TCFD
recommendations since 2018.
Sub-indicator 10.2 The company employs
climate-scenario planning to test its strategic
and operational resilience.
Our scenario analysis has been revised and includes a net
zero pathway, aligned with a 1,5oC target.
We updated our scenarios to provide for more challenging
parameters, to establish the robustness of our businesses.
SASOL CLIMATE CHANGE REPORT 2022 59
Not aligned
Partially aligned
1, 57
16 –19
Aligned
