Sasol Integrated Report 2023 - Book - Page 17
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PERFORMANCE
CREATING VALUE
GOVERNANCE AND REWARDS
ADMINISTRATION
OUR STRATEGIC DIRECTION CONTINUED
RESETTING OUR BUSINESS TO ENABLE OUR OTHER FUTURE STRATEGIC HORIZONS
Resetting our foundation business
Transitioning and reinventing our business
We continue to face several headwinds due to unfavourable macroeconomic
conditions and internal challenges. This is resulting in an emerging gap to
targets and needs to be managed to achieve competitive returns. We are
responding to this rapidly evolving operating landscape through our ‘Living
Strategy’ approach.
We have commenced transitioning our business by investing in renewables
and driving energy efficiency. We will selectively deploy growth projects while
managing balance sheet risk, through our capital allocation framework and
accelerating high return opportunities. The further development of our FischerTropsch (FT) sustainable solutions remains on our radar. We will therefore
continue to pursue collaborations and partnerships that, together with our
advantaged FT technology, uniquely position us to thrive in a world contending
with global efforts to minimise the use of fossil fuels.
We are redoubling efforts on the identified initiatives in the Reset phase to
manage the gap, ensure delivery of our financial targets and a sustainable
path for the company.
IR
For more detail refer to Sasol ecoFT at a glance 3 page 62
A holistic approach to sustainability
to improve our performance
We take a holistic approach to sustainability
that goes beyond mitigating and adapting to
climate change. It is one that encompasses
other environmental, social and governance
(ESG) aspects. It‘s approach is founded in our
ESG aspiration, which is to improve our ratings
year-on-year and be included in the Dow Jones
Sustainability Index.
In pursuit of this aspiration:
PERFORMANCE AMBITION, VALUE CREATION LEVERS AND MULTI-YEAR OUTLOOK
Delivery agenda
Develop agenda
Initiatives ready for
execution
Monitoring of signposts
Frequent updating and
assessment of unresolved
strategic issues
‘LIVING STRATEGY’
APPROACH
Focused dashboards
with a few critical key
performance indicators
Collaborative delivery
dialogues to track progress
and accelerate delivery/
remove roadblocks
Dynamically adapt the
strategy to keep pace with
our operating reality
DYNAMIC RESOURCE ALLOCATION
Working capital
optimised 16,5%
Gross margin uplift
R6 – R8 billion
Capital range*
R26 – R32 billion
per annum
Financial year 2024 targets – Reset for financial year 2025 delivery
Cash fixed cost
reduction
R10 – R12 billion
Working capital
optimised
15,5 – 16,5%
average
Gross margin uplift
R8 – R10 billion
Capital range*
R26 – R32 billion
per annum
* Maintain and transform capital only (no selective or expansionary growth included) in FY23 real terms
Sasol’s contribution to the Decade of Action, the SDGs and the Ten Principles
Having prioritised five SDGs we measure our contribution to the Decade of Action as it is closely linked to our
sustainability focus areas. We also consider the effectiveness of relevant company policies with respect to the
Ten Principles. Our Sustainability Report considers this in detail. WWW SR For more detail refer to our Sustainability Report available on our website, www.sasol.com
SASOL INTEGRATED REPORT 2023
• biodiversity footprint assessments have
been undertaken at both our Secunda
and Sasolburg facilities;
• process of understanding Sasol’s circularity
baseline is ongoing;
• constantly improve our governance and
disclosure processes;
• delivering on our Sasol Promise to Society
will remain key in elevating the role we play
in our communities by:
– being actively involved in the communities
where our facilities are located, ensuring
that we not only capacitate and empower
but also create meaningful opportunities;
Financial year 2023 performance and target commitment for financial year 2025 delivery
Cash fixed cost
reduction
R8 – R10 billion
• short-term water targets have been set
which we monitor and take corrective action
where we deviate;
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– working in order to create a positive and
measurable socio-economic impact and
respond to key societal and environmental
challenges in the communities where we
operate; and
• be actively involved in the activities of the
United Nations (UN) Global Compact.
The role of the Board
The Board held 11 meetings during the year and an
additional two meetings were held to discuss and
debate the impact of the external and internal
factors on the execution of the Group9s strategy.
The Board, having considered the impact, approved
the redoubling of efforts on the Reset horizon so as
to enable the two other horizons and to deliver
Future Sasol.
