Sasol Integrated Report 2024 - Book - Page 118
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
SOCIAL – COMMUNITY continued
SUSTAINABLE PROCUREMENT
OUR COMMITMENT
We are committed to the sustainable supply and delivery of
goods, services and products thereby maximising shared value.
Through mutually beneficial relationships with our supply
chain stakeholders, we endeavour to understand, translate
and proactively deliver on commitments, on time and
at the required quality and price. We are committed
to developing our fenceline communities and
prioritising local procurement.
OUR GROUP APPROACH
We hold our suppliers to the same standard that we hold ourselves. Our approach towards economic
growth entails embracing principles of sustainability through socially and environmentally responsible
procurement practices. It also includes fostering fenceline community growth; finding opportunities
for local manufacturing; and targeting procurement with historically disadvantaged groups. Sound
principles and governance processes underpin our integrated approach.
TARGETED INTERVENTIONS
Palm oil and renewable feedstocks
Sasol produces a limited quantity of products using sustainably
sourced raw materials including palm and coconut oil derivatives.
As a member of the Roundtable on Sustainable Palm Oil (RSPO),
Sasol has implemented a RSPO mass balance certification for all
related production sites. Furthermore, a Palm Oil Policy is in place
which was updated in FY23, specifying requirements for the
traceability of related products.
We have also implemented an International Sustainability and
Carbon Certification (ISCC) supply chain certification for selected
products to broaden our product portfolio with sustainability
credentials. This mass balance certification allows us to procure
selected non-palm-derived feedstocks with sustainability
credentials and offer certified ISCC PLUS products to our customers.
Renewable electricity procurement
• Our Chemicals business have signed a Power Purchase Agreement
(PPA) contracts for the two German plants Marl and Brunsbüttel
to replace fossil power with green power, resulting in a scope 2
reduction for the two plants of approximately 25 ktpa and 5 ktpa,
respectively. In addition, the utility providers in Marl (Evonik) and
Novaky (SSE) have switched from coal to natural gas and nuclear
respectively, further reducing scope 2 emissions by 70 ktpa in
Marl and 0,3 ktpa in Novaky.
• In Italy, two 0,5 MW and 1 MW solar power plants located in the
Augusta area have been recently built and connected to the
public grid.
• In North America, we are working with the local power supplier,
Entergy, in Lake Charles, Louisiana to partner on their Green
Tariff Agreement that allows for smaller and incremental uptakes.
The first increment will go into effect in FY25/26 and will result
in a 10 kt/a reduction in scope 2 CO2e.
• In China, 30% of the annual electricity requirements at the plant
in Nanjing China is covered by green electricity.
Conflict Minerals
Sasol makes an annual submission as part of our United States
Securities and Exchange Commission filing in terms of the
Dodd-Frank Wall Street Reform and Consumer Protection Act 68
of 2008, on our use of any of the four minerals that have been
linked to conflict in African countries (known as conflict minerals).
Procurement of banned and restricted substances
We screen all orders for inbound chemicals and materials to
ensure that we do not procure illegal or banned substances.
Where substances are restricted or controlled, permits are in
place and are managed by our Product Stewardship function,
to ensure adherence to all related requirements
Zero tolerance for unethical behaviour
We encourage all our suppliers and stakeholders to ‘speak up’
against any suspicious unethical and economic crime activities to
ensure that we collectively adhere to the provisions and principles
of ethical sourcing and procurement. In South Africa, investigations
relating to potential cases of Broad-Based Black Economic
Empowerment (B-BBEE) fraud (fronting) are actively investigated.
SASOL INTEGRATED REPORT 2024
116
Suppliers are de-selected where unethical behaviour is identified.
Our robust processes and internal controls resulted in a small
number of suppliers (five) being deselected as a result of
B-BBEE fronting.
Suppliers and service providers are required to operate within
the ethical and legal parameters stipulated in the Sasol Supplier
Code of Conduct as well as the Anti Bribery and Corruption (ABAC)
and Business Human Rights policies. The Sasol ethics line is
available globally to Sasol employees and external parties to report
suspected unethical supply chain activities. South African
suppliers have access to two separate training modules on the
Sasol Supplier Management website, under the Ethics section
on our website www www.sasol.com/esg
We continue to regularly communicate with suppliers on ethics,
ABAC and Business Human Rights (BHR). The number of South
African-based suppliers trained on ethics and compliance
increased to 4 331, or 70% of our registered suppliers. In addition
to the 2 896 ABAC risk assessments completed, 1 516 BHR risk
assessments were concluded. We also reviewed previous ABAC
risk assessments and during FY24 1 198 and 127 re-screenings took
place for medium and high-risk suppliers respectively.
During FY24 in Eurasia the due diligence was conducted for 358
new suppliers as well as for 82 suppliers as re-assessment. In total
2 442 suppliers are currently under continuous monitoring in
Eurasia. In Americas we have 2 547 suppliers under continuous
monitoring using a digital solution. During FY24 in Americas the
due diligence was conducted for 302 new suppliers as well as for
952 suppliers as re-assessment.
