Sasol Integrated Report 2023 - Book - Page 24
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
PRESIDENT AND CHIEF EXECUTIVE OFFICER’S STATEMENT CONTINUED
SUPPORTING SOUTH AFRICAN
GOVERNMENT
In June 2023 it was announced that the South
African government and organised business
agreed to urgently work together in partnership,
with appropriate engagement and oversight
structures, to remove obstacles to inclusive
economic growth and job creation.
Three immediate priority interventions agreed are:
• energy;
• transport and logistics; and
• crime and corruption.
Sasol is one of two Business Sponsors for the
‘energy’ priority area where the focus is to
support Eskom and the country’s efforts to end
loadshedding, with efforts being coordinated
via the government-led National Energy Crisis
Committee and the Energy Council of South Africa.
QUESTION:
How are you addressing the deterioration
of coal quality over the longer term?
On coal quality, our understanding of the
issues has evolved significantly over the
past year because of the work we are doing,
and we believe there is potential to turn this
around with the right solutions implemented.
We are focusing on the several levers to address
this over the short to medium term.
Firstly, ensure that the right quality coal is
targeted at the mining coalface to get the optimal
blend as feedstock to the Secunda facility.
Secondly, to improve coal blending by maintaining
a high stockpile which minimises variation of
quality of coal to the Secunda facility; and
Thirdly, we are actively progressing further
technical work on the technology solution to
reduce sinks in the coal. We aim to make a
final investment decision during FY24.
In the longer term, to address the issues, we
have a robust pipeline of studies and projects
which are at different engineering stages and will
provide more clarity when milestones are reached.
We are optimistic that by implementing the
appropriate solutions and upholding our pledge
to prioritise safety, there is potential to turn
this around.
QUESTION:
QUESTION:
Is Sasol still on track with its decarbonisation
journey and broader sustainability efforts?
What is your view of what a just transition entails and what role does Sasol play in South Africa?
This year, we faced a range of challenges
underscored by a volatile global economy
that was aggravated by internal feedstock
reliability and operational challenges.
This contributed to a reduction in
greenhouse gas emissions, achieving an
approximate 5% improvement equivalent
to 3,5 Mt CO2e ton reduction off the 2017
baseline, albeit at a lower production
volume. We have signed more renewable
Power Purchase Agreements (PPAs), now
totalling more than 600MW towards the
2030 target of 1 200MW. In support of the
green hydrogen ambition in Sasolburg,
we commissioned approximately 3MW
solar photovoltaic renewable energy on
the Sasolburg site for the project, enabling
production of the first green hydrogen
from the facility.
Our interpretation of a just transition is founded on a shared value approach that considers
our business, our employees, and the economic landscape in which we operate. Sasol has
looked to South Africa’s Presidential Climate Change Commission for guidance on what a just
transition entails, and we have also detailed our own definition taking our specific context
into account.
We recognise the significant role Sasol plays not only in contributing to the country’s gross domestic
product, but also in providing direct and indirect employment to a substantial number of people.
This awareness underscores the importance of our approach.
To ensure that our just transition is well-executed, we have established a Just Transition Office guided by
a clear decision-making framework. The primary focus of this office is to facilitate engagement at various
levels, allowing stakeholders to participate in the process and have their voices heard. By implementing
this approach, we aim to navigate the transition in a fair and inclusive manner.
We have expanded our sustainability focus
beyond just addressing climate change, and this
shift has been yielding positive results.
We have already set and are actively working
towards meeting our short-term water targets.
Moreover, we have conducted biodiversity
assessments at both Secunda and Sasolburg
sites, which has allowed us to better understand
and address our impact on the environment. As a
result, our environmental, social, and governance
(ESG) ratings are steadily improving year-on-year.
ESG RATING
S&P Global Corporate Sustainability
Assessment (Dow Jones Sustainability Indices)
Our rating
2022
54%
2023
62%
Notwithstanding the challenges we face,
our commitment to sustainability and proactive
approach to addressing environmental concerns
have positioned us on a path of continuous
progress and improvement.
SASOL INTEGRATED REPORT 2023
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