Sasol Integrated Report 2024 - Book - Page 119
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
SOCIAL – COMMUNITY continued
SUSTAINABLE PROCUREMENT
continued
TARGETED INTERVENTIONS
As part of our supply chain risk management,
we continuously develop both our structures and
processes to meet changing conditions including new
requirements arising from the German Supply Chain
Due Diligence Law (LkSG).
For more details refer to the Human Rights section pages 127 – 128.
As a company with a global value chain, we actively
advocate for compliance with laws, international codes
of conduct, and human and environmental rights, both
within our own business and along our value chains.
Our goal is to achieve competitive prices through our
professional procurement organisation, establish
stable and reliable supply chains, and at the same time
meet ethical and environmental standards. In close
collaboration with our suppliers, we strive to improve
sustainability in the supply chain and minimise risks.
Supplier environmental, social and
governance (ESG) screening and audits
We assess our significant suppliers' performance on
ESG matters and develop action plans to remedy issues
in our supplier base. In Europe, we use EcoVadis to rate
our critical suppliers on their ESG performance. These
186 suppliers contribute to more than 50% of the
external spend, with an average score of 62, improving
constantly over time. In South Africa, we conducted
539 safety and/or technical audits where new suppliers
were introduced or where current suppliers changed
their scope of work.
A sustainable procurement questionnaire was sent to
660 suppliers, which constitutes 78% of our supplier
base on spend. These include a number of key areas
of importance to assess their ESG maturity. Of these,
33% completed the questionnaire. The results
showed that the biggest areas of risk lies in
the Community stakeholder engagement and Corporate
Social Investment, climate change and water
management areas.
Audits are undertaken on suppliers which include
the technical capability and competence of
suppliers, where applicable suppliers are requested
to illustrate their processes and procedures linked to
environmental aspects as well as the safe handling
of chemicals and hazardous materials. Safety, being
Sasol’s first priority is assessed through the Safety
Accreditation audits which are risk-based where
suppliers perform work on the Sasol Sites.
Environmental impact reduction
Focused sourcing projects to reduce the environmental
impact of our purchased materials and goods are
planned and executed. These projects include but not
limited to the following:
• A change from imported pine for our wooden
pallets to locally sourced pine not only reduces
spend per pallet and reduce scope 3 emissions.
The local supplier will plant seven trees for every
tree felled.
PERFORMANCE
Economic transformation In South Africa
• The project to install solar Photovoltaics for
Sasol Retail filling stations is nearing completion
with contracts of approximately R500 million to
be awarded in the next few months, this project
will assist in alleviating the impact of loadshedding
and ensure business continuity for Sasol.
• Increased our spending with Black-owned Small, Medium and Micro
Enterprises (SMMEs), by more than 40% in our fenceline communities.
• The Brunsbüttel plant supplemented its gas
requirements with biomethane, a renewable and
green energy source. The introduction of green
nitrogen replacing conventional nitrogen will
reduce Scope 3 emissions.
• Actively track our spend with Black women-owned businesses. In FY24, we spent
R11,3 billion with 1 202 SMME suppliers. This represents 14% of our preferential
procurement spend.
• South African vehicle emissions standards
currently specify that new vehicles sold in the
country must comply with exhaust emission
level Euro II or higher emissions levels. In 2018,
Sasol Energy purchased nine Euro VI fuel tanker
trucks to add to its existing fleet. In 2022, eight
locally assembled Euro V trucks were purchased,
and a further four Euro V trucks were added to
the fleet in 2023.
• Preferential procurement statistics include spending of R44 billion with
Black-owned businesses and R27 billion with Black women-owned businesses.
• Provided funding of R101,8 million to 34 suppliers.
• Spent R56,6 million developing suppliers, of which 35% is with majority Black
women-owned businesses.
• On localisation, over R250 million of the committed R680 million by Sasol has been
achieved thus far.
Mozambique
• PPA Operation’s spend with Mozambican companies in FY24 was US$37 million
(FY19: US$17 million) exceeding the FY24 target of US$30 million.
• The Mozambique Exploration, Remediation and Infill Campaign set-aside process
was successfully concluded during FY24, with a total of nine contracts being awarded
to locally owned Mozambique companies. The spend increased compared with
spending during the previous campaign.
Economic Transformation
• US$1,8 million was disbursed to 54 Inhambane SMMEs, of which 13 are partially women
owned. Through the fund, local companies have significantly improved their cash flow
that empowered them to invest in new equipment and expand their businesses.
Sasol aims to achieve a diverse, transformed,
sustainable and high-performing supplier base by
accelerating and supporting the development of small
medium enterprises (SME). We follow a comprehensive
strategy that transcends compliance, aiming to
transform local economy in South Africa
and Mozambique.
• 40 companies received in-person tailor-made training and mentoring sessions
during FY24 as part of the enterprise and supplier development process.
• An ISO 9001: 2015 Quality Management System (QMS) certification programme
was launched and 15 companies are enrolled in the programme.
For more detail refer to Economic Inclusion pages 118 – 119.
SASOL INTEGRATED REPORT 2024
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