Sasol Integrated Report 2023 - Book - Page 14
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
OUR OPERATING REALITY CONTINUED
PLANET
Internally, we are taking action towards a more holistic sustainability focus that goes beyond climate change.
DRIVER: Defined environmental, social and
governance (ESG) reporting standards and
framework, and stakeholders’ concerns
Efforts are underway globally to align ESG and
non-financial reporting standards in order to
facilitate peer comparability and give stakeholders
improved insight on performance against specified
targets relating to a broad range of metrics.
(MM)
of the Treaty and support of its effective
implementation. Through application, plastics
have provided many sectors with the means
to significantly improve the quality of life
for communities globally while also making
meaningful contributions to the Sustainable
Development Goals.
DRIVER: Climate change
We are embracing and lining up reporting
with ESG requirements and best practice
recommendations which will facilitate funding
and enhance our reputation. Our approach
and methodology is to identify, know and
monitor our exposure on all material metrics
with the aim of managing our impact, meeting
our sustainability intentions and benefit
from opportunities.
Decarbonisation: is a pressing ongoing challenge
of our time. As an organisation with a significant
greenhouse gas emissions profile, we are placing
considerable efforts on reducing our emissions
and transitioning to a sustainable Future Sasol.
DRIVER: Transitioning to a circular economy
We recognise that business has a key role to
play in managing climate change risks, as well
as realising opportunities that the energy
transition could unlock.
The world faces a series of interdependent
environmental challenges that are defining
and complex due to the linear consumption of
resources. Current trends indicate a decrease in
global circularity with the need for urgent action
to bridge the circular economy gap.
The ultimate goal of circulating resources,
materials and products is to enable renewable
and optimal reuse.
In February 2022 the United Nations
Environment Assembly adopted a resolution to
develop a legally binding instrument on plastic
pollution (the Treaty). Global trends indicate
that the demand for virgin polymers will remain
robust driven by societal benefits combined
with growth in population, urbanisation and
the expansion of the global middle-class.
We will continue to monitor developments
and engage appropriately to foster multistakeholder participation in the development
We applied a science-based target setting
approach and are implementing measures taking
into account mitigation potential and our fair
share responsibility.
Geopolitics: The Russia/Ukraine war has
disrupted the energy ecosystem and is impacting
the pace and scale at which the energy transition
is being undertaken.
The war will likely continue to impact the
world’s ability to meet committed Paris
Agreement goals and push for efforts to limit
temperature increase to 1,5 degrees.
Supply chain: The energy transition is being
hampered, by supply chain disruptions slowing
access to key components required in the energy
transition. Renewable energy markets, for
example, are experiencing high volatility because
of fluctuations in the supply and cost of raw
materials, as well as changes in regulations.
Delays and price increases in United States
virtual power purchase agreements due to
global supply chain challenges are affecting
renewable energy rollout.
Price of carbon: Several countries are
implementing carbon pricing regulatory reforms
through higher taxes, stringent emission
trading schemes and border taxes to encourage
decarbonisation.
Carbon pricing continues to vary from region
to region given the divergence in affordability
and incentives. Carbon border adjustment
taxes are signalling negative impacts for
emerging economies still reliant on fossil
fuels and could result in key sectors becoming
uncompetitive sooner.
Technology: With the overall objective of
achieving climate change goals, advancement in
low-carbon technologies is progressing, albeit
slower than anticipated.
Low-carbon technology development
requires greater application. Collaboration
and partnerships are crucial for technology
development and implementation. Accelerating
mitigation solutions for hard-to-abate sectors,
such as aviation, steel and others is vital for
achieving Paris climate goals.
Stakeholders’ expectations: Stakeholders9 with
competing mandates continued to advocate for
science-based approaches, accelerated climate
action, as well as a just and equitable transition.
We expect continued pressure from
stakeholders to decarbonise in a responsible,
swift manner while remaining cognisant of
national circumstances.
SASOL INTEGRATED REPORT 2023
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DRIVER: Water availability
As water supply is a finite resource, its
scarcity continues to be an increasing problem
globally. As a result of demand exceeding
supply, exacerbated by unsatisfactory water
use practices, inadequate infrastructure or
institutions failing to balance everyone9s needs,
depletion persists. Impact of climate change is
compounding the issue as water held in soil,
snow and ice continued to diminish.
We have approved short-term targets as part
of our contribution but it is acknowledged
that an integrated, longer-term and inclusive
approach must be taken to control this finite
resource. We will play our role in catalysing
a collaborative water stewardship approach
– including managing and monitoring water
risks, setting meaningful savings targets and
improving usage disclosure.
DRIVER: Protecting biodiversity
Biodiversity is essential for the processes that
support all life on earth, including humans.
Without a wide range of animals, plants and
microorganisms, we cannot have healthy
ecosystems. Without biodiversity, our entire
support system for human, as well as animal
life, would collapse. The threat to biodiversity
persists.
Appreciating the interconnectedness of climate
change and biodiversity we have undertaken
‘Biodiversity Footprint Assessments’ at our
Secunda and Sasolburg facilities with the
objective of protecting, maintaining and
enhancing established biodiversity.
