Sasol Climate Change Report 2022 - Book - Page 7
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
GOVERNANCE
DATA AND ASSURANCE
PROGRESSING EFFORTS TO ACHIEVE OUR TARGETS
2030 TARGET AND NET ZERO AMBITION BY 2050
SASOL ENERGY AND CHEMICALS COMBINED BASELINE 2017
Total scope 1 and 2 emissions
65,9 MtCO2e
1
1
2022 performance
~7% reductions from 2017
Reduce by 30% absolute
scope 1 and 2 GHG emissions
by 2030 for the Sasol Energy
and Chemicals businesses
2
2
Progress towards
2030 target
Reduce by 20% absolute scope 3
emissions by 2030 for Category 11:
use of our sold energy products
ACHIEVEMENTS
On track with milestones
3
Reduce absolute scope 1, 2
and 3: Category 11 GHG emissions
to achieve a net zero emissions
ambition by 2050 for the Sasol Energy
and Chemicals businesses
WHY
HOW
Sasol supports the Paris Agreement. We are committed to playing
our part in the global effort to meet the Paris Agreement goals
and have used a science-based approach to set our targets.
We have set a 30% emission-reduction target, which supports South Africa in potentially
achieving the lower end of its Nationally Determined Contribution (NDC)3 target of 350 MtCO2
by 2030. Our medium-term target is a foundation to support achievement of our 2050 ambition.
We are transforming our business towards an absolute scope 1, 2 and 3 (Category 11) net zero
ambition by 2050. In addition, we are aiming for a 20% reduction on scope 3 emissions
for Category 11 by 2030.
Sasol is a significant emitter of GHGs, particularly in
South Africa. Although we have made valuable reductions in
GHG emissions since 2004, we are responding to the need to
do much more to meet the Paris Agreement goals.
Sasol’s scope 3 emissions account for ~38% over the
period 2019 – 2022 and in 2022 accounted for 37% of our total
GHG emissions. Our most significant scope 3 emissions arise
from Category 11.
Sasol has defined roadmaps for our relevant operations, detailing mitigation technology levers
we intend deploying. We have developed several pathways to achieve net zero so that we have
optionality.
As part of a scope 3 programme focusing on all 15 categories of emissions, we are developing a scope 3
Category 11 emission-reduction roadmap to support our target. We are also working collaboratively
with customers and suppliers to reduce scope 3 emissions across our value chains (see page 32).
SASOL ENERGY
Concluding negotiations on Power Purchase
Agreements (PPAs) for over 600 MW of solar and
wind renewable power for introduction before end2025 – one of the largest private sector renewable
energy procurement initiatives in Southern Africa
Advancing negotiation of a term sheet for
40 – 60 PJ/a of liquefied natural gas (LNG) as additional
gas over and above our current requirements of
160 PJ/a to replace 10 Mtpa of coal by 2030
(representing a 25% reduction in coal usage)
Achieved final investment decision for the Sasolburg
green hydrogen project and fast-tracked the
associated procurement of renewable energy
Developed a commercially usable fine coal briquette
solution as an option to support Secunda’s boiler
turndown for the first step change in emissions by
end 2025
Confirmed the full-scale viability to recycle biosludge
to our coal gasifiers
SASOL CHEMICALS
CHALLENGES IN THE SHORT TO MEDIUM TERM
CHALLENGES IN THE LONG TERM
• Delay in the German H2Global auction potentially impacting timelines for production of SAF at Secunda,
using green hydrogen
• Lack of recognition for co-processing of bio-derived and fossil fuel feedstocks from FT processes in the
Draft European Union (EU) Delegated Act 28 to allow for a phased transition to net zero, particularly in
developing countries where alternatives are limited
• Lack of recognition for recycled fossil CO2 as a feedstock for SAF production beyond 2035 in the Draft EU
Delegated Act 28
• Delays and price increases in United States Virtual Power Purchase Agreements (VPPAs) due to antidumping sanctions and higher energy prices in Europe as a result of the Russia/Ukraine conflict
• Delays in disclosure of the scope 3: Category 12 emissions baseline because of the complexity of methodology
• Escalating carbon tax rates out of sync with mitigation, potentially increasing the cost of decarbonisation
• Methane focus potentially limiting the use of gas in the short to medium term and identifying
interventions to address methane leaks at Pande-4 in Mozambique
• Affordability and lack of incentives for sustainable products in markets
• Inability to secure skills and capabilities to support the transition
• Constrained electricity grid infrastructure and renewable energy supply chains
• The lack of certainty on how the technology
landscape will evolve
Concluded multiple renewable PPAs and a CO2 neutral
steam supply agreement amounting to 72 ktpa CO2e
reduction for our operations in Europe
• Incentives not being in place to assist with the
transition and rapidly falling away before technology
costs come down
Achieved 100% renewable energy supply for imported
electricity for the Brunsbüttel site in January 2022
1. Re-baselined our 2017 target base year, removing divestments and including methodological changes for Sasol Energy.
2. For combined Sasol Energy and Chemicals baseline and largely due to lower production and operational issues.
• Ability to access affordable sustainable carbon
feedstocks
• Lack of CCS, DAC and electrolysers moving down
the cost curve fast enough
• Cost of capital remains high
Undertook first sales of certified renewable ethylene
derivatives to customers
SASOL ecoFT
3. Dependent on the electricity sector also decarbonising.
SASOL CLIMATE CHANGE REPORT 2022
Obtained ISCC Plus certification for sustainable
feedstocks for Marl, Brunsbüttel and Augusta
6
Progressing Sasol ecoFT’s mandate through
conclusion of several partnership agreements to grow
sustainable FT solutions for the production of SAF,
including development of a G4 catalyst optimised for
SAF production
