Sasol Integrated Report 2024 - Book - Page 23
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PRESIDENT AND CHIEF EXECUTIVE OFFICER’S STATEMENT continued
Leveraging innovation for scalable growth
and transformation
A critical factor in enabling LNG supply is securing confirmed
demand, which will support the development of an LNG
terminal and its associated infrastructure. This terminal will also
pave the way for other customers to come online in future.
In the short term, our focus is on enhancing delivery from
our core businesses and maximising cash flow. In the medium
term, we aim to sustain this momentum while scaling up
transformation opportunities. Over the long term, we plan
to optimise and transform our portfolio by leveraging existing
assets and exploring new sustainable growth opportunities.
We also recognise that innovation in feedstocks is pivotal for
our transformation. We are actively piloting the use of
renewable feedstocks in power generation and transforming
these feedstocks into fuels. By scaling these opportunities in
the future and leveraging our existing facilities and our
Fischer-Tropsch technology, we can diversify our feedstock mix.
While we refine our strategy, in preparation for our next Capital
Markets Day, we are not remaining idle.
Balancing environmental, social and governance
(ESG) commitments with strategic value
We continue to progress our renewable energy commitment
of 1 200 megawatts by 2030. So far, we have signed over
750 megawatts of Power Purchase Agreements, some of
which are in construction and will come online in the near term.
In today’s business environment, an organisation’s ESG
performance is as vital as its financial results.
The commissioning of Msenge Emoyeni wind farm is nearly
complete, and we anticipate it will supply 69 megawatts of
renewable energy by October 2024, to our Sasolburg Operations.
These developments mark a significant milestone in our
commitment to sustainable energy. Moving forward, we aim to
build on this success, and we are exploring options to position
ourselves as leaders in renewable energy projects. This will not
only help us reduce our carbon footprint, but also support
South Africa’s energy pathway.
Building on our success with renewable energy
committments, we are exploring options to position
ourselves as leaders in renewable energy projects.
Additionally, natural gas serves as a crucial transition fuel in both
Sasol and South Africa’s energy mix. In line with this, we continue
to optimise and mature projects in southern Mozambique.
These efforts aim to extend our gas plateau, to supply our
customers, for as long as feasibly possible.
Consequently, we are pleased to confirm that we can continue
the supply of natural gas and methane rich gas to our customers
up to the end of financial year 2027. As previously communicated,
gas in the south of Mozambique is tapering. To close this gap,
and in response to our country’s energy needs, we are investigating
the potential for future liquified natural gas (LNG) supply.
We fully embrace the challenge of balancing impactful ESG
initiatives with shareholder returns; hence our Integrated
Report now includes a dedicated ESG section, underscoring
our commitment to transparency and accountability.
To this end, environmental stewardship remains central to
our strategy. We take a balanced approach across our People,
Planet, and Profit goals, ensuring every decision supports
our environmental ambitions, social responsibility, and
shareholder value.
Furthermore, we successfully appealed the 12A application
of the Minimum Emission Standards, allowing for load-based
limits from 2025. This decision is key to our decarbonisation
strategy, particularly at Secunda Operations.
The energy transition is shaped by factors like energy security
and a just transition. By remaining agile and responsive, we are
adapting to these changes and shaping our strategic objectives
accordingly. In this context, optimising the execution of our
greenhouse gas (GHG) emission roadmap is essential as it
ensures we maximise value from SO, while meeting these
key factors.
We also recognise that transformation goes beyond adapting
to change; it is also about seizing new opportunities. For this
reason, we are focused on identifying and building scalable
growth around new sustainable value pools, creating a more
resilient business of tomorrow.
We welcome ongoing stakeholder input as we refine our
approach to transforming Sasol and look forward to sharing
further progress at our 2025 Capital Markets Day.
SASOL INTEGRATED REPORT 2024
21
FOCUS FOR YEAR AHEAD
Financial year 2025 (FY25) will be about stepping up delivery
as we progress our pathways to full business potential.
In Mining, our benchmarking indicates that supply from our
own mines remains the most cost competitive for our value
chain. Consequently, our focus will be on improving our own
volumes, reducing unplanned coal purchases, and reducing
production costs.
We will achieve this by increasing capacity at our mines
and creating deployment flexibility. Additionally, we are
implementing our Coal Quality Improvement Programme,
which focuses on coal and blend quality. A final investment
decision on our destoning solution will also be made later
this calendar year.
As we refine our delivery plans, we will shift our focus from
tracking productivity at Mining to ensuring we maximise
saleable production tons at the lowest possible cost.
Looking at our South African operations, operational stability
and rigour are key. This includes the execution of successful
shutdowns and optimising external spend.
International Chemicals is undergoing a reset journey as
we target various opportunities. In FY25 we will maintain
momentum by focusing on improving efficiency and driving
targeted innovation. We will enhance our go-to-market
model to better align with evolving consumer demands.
We will also provide more competitive solutions to our
customers. Additionally, we will review and asses our
asset portfolio. Here, we will take decisive actions on
underperforming assets to ensure robust returns
comparable to our peers.
In Southern Africa marketing and sales, we aim
to enhance margins through optimised channel placement
and improving customer value proposition.
On the regulatory front, risks to our business persist,
and managing these through proactive engagements
with critical stakeholders remains a priority. Flexibility in
our strategy is also being considered to allow us to respond
effectively to evolving regulations and policies.
FOCUS AREAS
We are committed to unlocking the full potential of our business
and building a more sustainable Future Sasol. To achieve this,
we are refining our strategy to proactively address challenges,
while leveraging our competitive advantages to seize opportunities.
