Sasol Integrated Report 2022 - Book - Page 69
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
REMUNERATION REPORT (CONTINUED)
The following table illustrates the alignment between the Group’s key priorities and the targets set for 2022 and 2023 STI and LTI awards. The combination of financial and non-financial metrics allows for value to be created
for our shareholders, clients, employees and communities in a sustainable manner.
2022 Group strategic priorities
PEOPLE
• Promote diversity and inclusion.
• Pursue Zero Harm through
relentless focus on preventing
high-severity injuries and
eliminating fatalities.
2022 Group incentive
key performance indicators
2023 Group incentive
key performance indicators
STI:
• Health and safety of our employees and communities
• Process Safety
• Operational Safety
• Rebuild trust and create shared
value.
STI:
• Health and safety of our employees
and communities
• Process safety
• Occupational safety
• Just Transition roadmap
2023 Group strategic priorities
• Strive to achieve a people-centred culture of safety by
leading safety with both care and compliance.
• Intensify our focus on operational discipline and preventing
high severity injuries and eliminating fatalities.
• Strengthen stakeholder trust through continued delivery on
community, regulatory and shareholder promises.
• Embrace diversity and inclusion to augment our culture and
Employee Value Proposition.
• Aligning a visible and integrated Just Transition programme
and incorporating localisation and economic empowerment.
PLANET
• Advance sustainability through the
delivery of our roadmaps and the
identification of opportunities to
grow and participate in sustainable
products and gain access to
emerging future value pools.
• Decarbonise our operations as
committed to in the Climate
Change Roadmap.
• Provide sustainable returns to our
PROFIT
shareholders in respect of capital
investments, capital allocation,
timely project completion and well
managed operations.
STI:
• Reduced environmental footprint
• Shifting to lower carbon products
• Building our Sasol ecoFT business
LTI:
• Holistic focus on Environmental, Social and
Governance matters
• Delivery of renewable energy sources to global operations
• Reduction in scope 1 and 2 emissions
STI:
• Management of cash fixed costs, sustenance capital and net
working capital to meet the Sasol 2.0 targets
• Achievement of sales volume targets
LTI:
• Return on invested capital (excluding AUC) split as follows:
– Rest of Sasol: ROIC of 14,5%
– US business: ROIC of 8,5%
• rTSR vs the peer group
• Growth on Adjusted EBITDA >CPI+2%
Pay gaps
Globally, there is an increased focus on pay gap reporting as many consider this to be a measure that promotes
a fairer and more equal society. Many countries have made the disclosure of pay gaps and the CEO pay ratio
obligatory. However, these are not yet obligatory in South Africa (SA). In 2020, the Committee approved a methodology
to track internal pay equity on a group, level, race and gender basis by country where we employ more than
250 employees on a permanent basis and where the data is available considering personal data privacy laws.
The Sasol Group pay gap methodology compares the median Total Target Remuneration (TTR) of 10% of the highest
Sasol earners per country with the median TTR of the lowest 10% Sasol earners per country. This is similar to the
methodology used in Form EEA4 which has to be submitted annually to the South African Department of Employment
STI:
• Energy efficiency improvement
• Sourcing of carbon credits
• Shifting to lower carbon products
and Green Hydrogen
• Renewable Energy sourcing strategy
• Progress opportunities to enable sustainable growth by
strengthening our technology, partnering and sustainability
solutions.
• Deliver optionality relating to flexible, sustainable feedstock
opportunities.
LTI:
• Reduction in scope 1 and 2 emissions
STI:
• Sales volumes
• Cash fixed costs
• Free cash flow/turnover
• Sustainable net working capital
• Capital expenditure
LTI:
• Return on Invested Capital > WACC +1%
for SA and the USA respectively
• Relative total shareholders’ return
to exceed peer group median
• Commitment to our Sasol 2.0 transformation program to enable
the business to be competitive, highly cash generative and able
to deliver attractive returns as well as accelerating a return to
dividends.
• Enhance operational discipline, efficiency and effectiveness, and
drive reliable feedstock supply and operations across all value
chains.
and Labour. Target remuneration rather than actual remuneration is used for year-on-year comparisons
as the impact of macroeconomic factors on the LTI in particular is excluded.
During 2022, the Committee reviewed the detailed level pay gap ratios, which showed a downward trend
in South Africa, Germany and Italy. In the US the pay gap ratio increased. This was attributed to Sasol’s divestiture
of a number of businesses which resulted in a transfer of a number of employees from Sasol.
The Committee also commissioned a gender pay equity analysis, and no systemic gender pay gaps were identified.
The Committee understands the importance of ensuring that the wages of our lowest paid employees are sufficient
to accommodate a decent standard of living. We will continue to track the pay gap from this perspective.
SASOL INTEGRATED REPORT 2022
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