Sasol Climate Change Report 2023 - Book - Page 68
INTRODUCTION
TRANSFORMING FOR RESILIENCE
GOVERNANCE
CLIMATE ADVOCACY AND POLICY
DATA AND ASSURANCE
SASOL9S CLIMATE ADVOCACY DECLARATION
Our climate advocacy declaration
This year, again we underscored our
commitment to the Paris Agreement and
accountable, principles-based advocacy
through a formalised Climate Policy Advocacy
Declaration.
This declaration explains how we engage
with trade and industry associations and
stakeholders, including policymakers, to
promote balanced and effective climate policy.
We also detail the principles that guide our
climate-change advocacy, including our
commitment to assess this, both directly and
indirectly through industry associations.
The importance we attach to transparency and
meeting the legitimate expectations of our
stakeholders is embodied in the declaration.
This company-wide declaration is applicable to
all Sasol employees who engage on our behalf.
1. Refers to executive functionaries with powers to develop and implement policy and
associated regulations
2. Blue and green hydrogen
3. Taskforce for Climate Related for Financial Disclosure
4. Global Reporting Initiative
5. Sustainable Development Goals
6. Energy Productivity 100
7. Presidential Climate Commission
8. National Business Initiative
9. Sasol joins industry associations that represent a broad spectrum of views on
policy issues that extend beyond climate change and are important to our business
and operational issues. We do not always agree with the opinions of these groups,
however, Sasol is committed to collaboration and working with these groups
to address issues and reach the best outcomes. Our participation in industry
associations is subject to Board and executive management oversight. We
reserve the right to assess and determine whether to remain a member of
any organisation which publishes differing views or opinions.
Climate change management is material to our sustainability and is managed as
a Group Top Risk with ultimate accountability residing at the Sasol Limited Board
through its Safety, Social and Ethics Committee.
Sasol is committed to climate action and
acknowledges the need to reduce GHG emissions
in support of the Paris Agreement and its
temperature goals to limit global warming to well
below 2°C and pursue efforts to limit temperature
increase to 1,5°C. We responded positively in 2021
to the calls for a higher reduction ambition by
increasing our 2030 reduction target and
committing to a 2050 net zero ambition.
Sasol9s decarbonisation approach for a just
transition is premised on reducing our climate
change risks whilst maximising opportunities for
shared value creation through our just transition
roadmap. Climate change management is
embedded in our portfolio analysis and
decision-making processes as a mainstream
activity. Our net zero ambition with associated
short- and medium-term targets is underpinned
by Sasol9s commitment to progressively shift our
portfolio towards a low-carbon future. Our
dedicated efforts are therefore focused on
leveraging our competitively advantaged FT
technology to develop and produce sustainable
fuels and chemicals using green hydrogen and
sustainable sources of carbon.
We accordingly advocate for policymakers1 to
deliver robust climate action through coherent
and integrated climate policy and a related
regulatory framework to enable a just and
equitable transition that is appropriately paced
and timed for the context in which we operate.
We look to governments to set Paris-aligned
NDCs with our GHG reduction targets
contributing to their achievement, as well as
creating an enabling environment for climate
action to be taken by industry. Creation of an
enabling environment includes development of
an integrated mitigation system supported by
both positive and negative incentives, such as
subsidies and carbon pricing tools, respectively.
Sasol undertakes to participate in policymaking
processes transparently and constructively, as
provided for in the various jurisdictions in which
we operate. We will do so through direct
engagements with policymakers in the process
and also indirectly through industry associations.
We have adopted guiding principles to enable
responsible and effective advocacy that is
aligned with our strategic imperatives and
embodies our position on key climate change
matters. These principles include:
Acknowledgement and support for climate
science: We recognise the scientific basis
underpinning anthropogenic climate change
and acknowledge the role of industry in
mitigating emissions.
Support for the Paris Agreement goals:
We recognise that increased global effort
is required to support the aims of the Paris
Agreement and meet its temperature goals,
taking national circumstances into account.
Support for carbon pricing that provides
greater incentives for innovation and
low-carbon choices: We support carbon
pricing that enables an effective and efficient
transition to a low-carbon economy.
Support for the development of low- and
lower-carbon energy solutions in the form
of renewable energy; hydrogen2; carbon
capture, utilisation and storage; natural gas
(as a transition fuel) and energy and process
efficiencies: In our commitment to reduce our
reliance on coal, we view gas (as a transition
fuel) and renewable energy as springboards
into green hydrogen, to decarbonise
our operations. Energy- and process-efficient
technologies are being pursued in the short
term as they have not been fully maximised.
Support for transparency and disclosure:
We support and advocate for disclosure
aligned with best-practice standards, such
as the TCFD3, GRI4, SDGs5 and associated
reporting criteria.
SASOL CLIMATE CHANGE REPORT 2023
67
In its ongoing pursuit of responsible and effective
climate policy advocacy, Sasol remains
committed to:
" Engaging policymakers and collaborating
with industry associations to advocate
our position on matters that are critical to
managing climate change across our business
operations;
" Engaging in fact-based dialogues, sharing our
perspectives, listening to others, respecting
differences and working collaboratively to
enable a just and equitable transition that is
appropriately paced and timed for the context
within which we operate;
" Participating, where relevant and required,
in coalitions and industry associations that
have specific purposes that support the
Paris Agreement, such as EP1006, the PCC7
and the NBI8;
" Advocating and engaging constructively in
public policy processes and discussions, with
a view to respectfully acknowledging contrary
views where raised;
" Undertaking periodic industry association
policy reviews against our guiding principles
for responsible climate advocacy and
transparently disclosing the results of these
reviews in our reporting;
" Engaging with relevant industry associations
should misalignment (full or partial) with
our guiding principles be found, and should
it be deemed necessary, exiting industry
associations, engaging to influence their
views or disassociating ourselves from specific
misaligned policy positions9;
" Reviewing relevant independent third-party
assessments of our industry associations; and
" Assessing and incorporating, where relevant,
global best practices in our climate-advocacy
approach and disclosures.
