Sasol Integrated Report 2024 - Book - Page 152
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART IV: REMUNERATION IMPLEMENTATION REPORT continued
FY21 LTI award renewable energy target
In our FY23 Remuneration Implementation Report, we confirmed that the measurement of the renewable energy metric for the FY21 LTI awards, accounting for 25% of the corporate performance target, would
be deferred until more clarity was available in respect of Eskom’s grid access. The Committee agreed that this portion will be deferred until no later than 31 December 2026, and as a penalty for the delayed vesting,
a vesting outcome in excess of 100% is no longer possible and the previously approved stretch taget was changed to the target (100%).
LTI Plan outcomes – FY22 awards
In the next table we provide the outcomes against the corporate performance targets (CPTs) under which the FY22 LTI awards, were made. These awards are due to partially vest
in FY25 in respect of the performance period 1 July 2021 to 30 June 2024. For the GEC and SVPs, 50% will vest and the balance will be deferred for a further two year period. These LTIs
were granted at a price of, JSE: R384,69 and R262,82 (ADR: $24,53 and $17,43) and will vest at the closing price on the day before the vesting date.
Weighting
Holistic focus on
ESG matters
Threshold2
(Rating = 0%)
Target
(Rating = 100%)
Stretch
(Rating = 200%)
Achieve a sustainable 3% reduction
(equating to 1.8mtpa CO2e) in
Scope 1 and Scope 2 emissions off a
2017 baseline by end FY24 for the
Energy business
Achieve a 3,8% reduction
(equating to 2.36mtpa CO2e) in
Scope 1 and Scope 2 emissions
off a 2017 baseline by end FY24 for
the Energy business
Achieve a 4,5% reduction
(equating to 2.78mtpa CO2e) in
Scope 1 and Scope 2 emissions
off a 2017 baseline by end FY24 for
the Energy business
2
3
4
5
6
Energy KPI score 11%
(3,88% reduction)
Weighted
Achievement
10,6%
25%
40% RE power3 for our Chemical
60% RE power3 for our Chemical
80% RE3 power for Chemical
operations in Europe4 and Americas operations in Europe4 and Americas operations in Europe4 and Americas
by end FY24
by end FY24
by end FY24
Return on
Invested Capital6
25%
Relative TSR
measured against
the peer group
25%
Growth on
adjusted EBITDA5
25%
Chemicals KPI score 0%
0%
Within 10% of the DJSI inclusion
score by November 2023
Within 6% of the DJSI inclusion
score by November 2023
Within 3% of the DJSI inclusion
score by November 2023
DJSI score 67
4%
ROIC (excl AUC) at SA WACC of
13,5% per annum
ROIC (excl AUC) at SA WACC of
13,5% +1% = 14,5% per annum
ROIC (excl AUC) at SA WACC of
13,5% +2% = 15,5% per annum
FY22 at stretch (44%),
FY23 below threshold (13,2%)
and FY24 above target (17,2%)
19%
ROIC (excl AUC) at US WACC of 8%
per annum
ROIC (excl AUC) at US WACC of
8% +0,5% = 8,5% per annum
ROIC (excl AUC) at US WACC of 8%
+1% = 9% per annum
Averaging below threshold
for all 3 years
0%
Below the 50th percentile
of the index1
60th percentile
of the index
75th percentile
of the index
15th percentile, below threshold
0%
Adjusted EBITDA growth of
compound CPI for three financial
years
Adjusted EBITDA growth of
compound CPI +2% for three
financial years
Adjusted EBITDA growth of
compound CPI +4% for three
financial years
FY24 EBITDA above stretch target
50%
0 – 200% range1
Achievement
1
Achievements
Threshold = 50% vesting at median performance compared to 0% for other targets – straight line in-between threshold, target and stretch;
0% applies to ROIC and growth in adjusted EBITDA;
Renewable energy power targets may be met through recognised energy attribution certificates;
Nanjing excluded from the baseline and measurements;
Based on 3-year historic average adjusted EBITDA (FY19 – FY21). CPI weighted on regional EBITDA contribution to the Group; and
Split between SA and US done on the allocation of invested capital (since earnings is already considered in adjusted EBITDA).
SASOL INTEGRATED REPORT 2024
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83,6%
