Sasol Climate Change Report 2022 - Book - Page 8
INTRODUCTION
RISKS AND OPPORTUNITIES
OUR FUTURE SASOL STRATEGY
GOVERNANCE
DATA AND ASSURANCE
MESSAGES FROM THE CHAIRPERSON OF THE SSEC AND SASOL’S PRESIDENT
AND CHIEF EXECUTIVE OFFICER
asol remains resolute in its commitment
S
to decarbonise and enable a just
transition so that it is sustainable and
contributes to a thriving society.
asol is acting on our commitment to reduce our GHG emissions
S
by 30% by 2030 which lays a foundation for achieving a net zero
ambition by 2050.
Muriel Dube
Chairperson of the SSEC
Fleetwood Grobler
President and Chief Executive Officer
Dear stakeholders
Dear stakeholders
Since redefining our Future Sasol strategy, we have seen continued global volatility and
uncertainty with significant shifts in geopolitical dynamics. Most notably, profound changes
in aspects of global energy, which highlights the critical importance of energy security.
In addition, the world has been adjusting to and coming to terms with the impact of the
COVID-19 pandemic, while grappling with climate change risks.
As I reflect on the past year, what stands out is team Sasol’s dedication to our decarbonisation goals as endorsed at the 2021
Annual General Meeting (AGM).
Sasol is advancing its commitment to
decarbonise and enable a just transition so
that it is sustainable and contributes to a
thriving society. Last year, we announced
ambitious climate change targets in support
of the Paris Agreement goals. The Company
committed to pursue a net zero ambition by
2050, and in the medium term, to significantly
reduce GHG emissions by 30% by 2030. With
these goals as our north star, we have the
flexibility to course correct while executing
against the Future Sasol strategy.
The SSEC retains accountability for the climate
change Group top risk. This risk remains ever
present amid catastrophic weather events
being experienced globally. Most recently,
South Africa experienced devastating floods
in KwaZulu-Natal that displaced communities,
destroyed essential infrastructure and
significantly disrupted economic activity. We
assisted communities and local government
during the event and in the aftermath. Sasol
is still dealing with the supply chain challenges
emanating from this event and will likely do so
for the foreseeable future. These events
underscore the urgent need to bolster resilience
as part of an effective climate change response
that addresses both adaptation and mitigation.
I am encouraged by the partnerships and
collaboration pursued by Team Sasol over the
last year which underpins our just transition
approach that seeks to balance the vital need
for economic development, job creation,
energy security and GHG emission-reduction.
As countries around the world transform their
energy systems, it is essential that business,
government and societies partner for the just
transition. It is critical that exporting countries,
particularly emerging markets such as South
Africa, are able to access destination markets
through enabling policy and regulation that will
not prejudice or impede its ability to transition.
In this regard, regulatory challenges need to be
addressed within the remit of a just transition
to enable South Africa to continue to trade with
Europe as a key partner.
At COP26, I was heartened to see the financing
pledge of US$8,5 billion from key developed
countries to assist South Africa in its just
transition. While work is underway to formulate
a strategic allocation framework for these
funds, it exemplifies the multilateral
partnerships needed to combat climate change
and act collectively.
We continue to engage our stakeholders for
their perspectives and we welcome this
ongoing engagement. Noting the trend of global
volatility and uncertainty, Sasol is committed
to realising its ambition to be future-fit.
Muriel Dube
Chairperson of the SSEC
26 August 2022
We remain confident in our decarbonisation
strategy, supported by positive strides taken
in the past year. Our approach retains a
degree of agility and responsiveness as we
navigate a complex and evolving landscape
that is supported by our pragmatic approach
to capital allocation. In this report more detail
is provided on our roadmaps, the use of gas
as a transition lower-carbon energy source
and the viability of green and emerging
technologies to develop sustainable business
solutions. Notwithstanding the many
unknowns and challenges, we remain
steadfast that these will be navigated as
we and the global industry accelerate research
and development efforts into low-carbon
solutions.
The urgency with which we must respond
to climate change requires a deliberate
approach and collective will, which extends
beyond a single entity. We are creating
partnerships to catalyse innovation and help
provide answers to some of our own and
the world’s most difficult climate change
challenges. In complementing our strategy,
our goal is to create an ecosystem of partners
to close identified gaps in skills, technology,
experience and expertise. We are learning
from our partners, tapping into their thought
leadership, as well as offering internal
resources and talent to innovate and generate
sustainable solutions, while together securing
economies of scale.
Sasol is one of the world’s largest producers
of grey hydrogen. We are leveraging this
SASOL CLIMATE CHANGE REPORT 2022
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expertise to contribute to developing the green
hydrogen economy in Southern Africa. During
2023, our first volumes of green hydrogen will
be produced from existing electrolysers in
Sasolburg. This will be the largest volume of
green hydrogen produced in Southern Africa
and is a key milestone to stimulate the local
green hydrogen economy. We are also advancing
the pre-feasibility study for the Boegoebaai
green hydrogen project in the Northern Cape
and are evaluating other mega-projects. Sasol
is concluding PPAs with suppliers for greater
than 600 MW of a pioneering volume of
renewable energy that will be supplied to our
operations before end-2025.
Sasol ecoFT, our newest business, is making
progress and has committed to several
partnerships to determine the feasibility of
producing SAF from green hydrogen and
sustainable carbon sources. These catalytic
projects are currently mainly focused in Europe
and are leveraging our proven FT technology
to produce e-kerosene and sustainable
naphtha products.
Moreover, Sasol Chemicals are leveraging our
unique chemistry to produce sustainable
chemicals that are essential for modern
society. We are also moving ahead with
integrating renewable energy into our facilities,
potentially pursuing CCS in the United States
and establishing a customer-centric
low-carbon portfolio.
Achieving the Future Sasol strategy is not
without challenges. In the past year, the EU
issued directives that could limit the
placement of transition green hydrogen
products in the EU market, for example SAF
produced from repurposed South African
assets. In addition, the South African
government recently proposed challenging
future carbon taxes, with allowances
remaining uncertain. We also faced operational
instabilities and witnessed delays in the
licensing of renewable energy.
Although these issues are concerning, we are
addressing them head-on. We have accelerated
our proactive advocacy campaigns, increased
consultations with key stakeholders and are
advancing decarbonisation projects (where
possible), while we continue to innovate to
deliver reductions within the context of a just
transition. Together with our South African
and German partners, we are also actively
changing the Power-to-Liquids (PtL) research
landscape, with a focus on developing higher
yielding FT catalysts to optimise SAF
production.
In closing, as we forge ahead in shaping a
future Sasol that is more competitive and
sustainable, we are advancing our collective
learning and enhancing our ability to respond
effectively to an ever-changing environment
that we are confident will deliver increasing
value into the future.
Fleetwood Grobler
President and CEO
26 August 2022