Sasol Integrated Report 2024 - Book - Page 79
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
ENVIRONMENT continued
CLIMATE CHANGE
continued
Our commitment to climate action
PARIS ALIGNMENT
We are fully committed to playing our part in the global effort to support
the Paris Agreement goals and have used a science-based approach to set
our targets. In setting these targets the lack of relevant external standards,
against which our support could be assessed, has been challenging.
The Science Based Target Initiative (SBTi) is being used by some to
set science-based targets. However, our unique business, built on
the FT process and not conventional oil refining, does not fall within
the SBTi’s available methodologies.
This year, we engaged with SBTi’s Oil and Gas Expert Advisory
Group to raise our concern on the lack of an available methodology.
Regrettably, our discussion did not yield the desired outcome, as
their oil and gas methodology does not apply to Sasol’s unique
process. Meanwhile, the Chemicals sector SBTi methodology
is open for comment, which we are evaluating to determine
applicability.
As a result, the IEA absolute contraction methodology informed by
other considerations remains part of our target setting approach,
including:
• the SBTi’s net zero standard;
• mitigation availability and timing;
• cost;
• environmental benefits; and
• just transition imperatives.
We have assessed our 2030 reduction target as well below 2°C
aligned and our net zero ambition as 1,5°C aligned. While
some stakeholders commend the approach we have adopted,
others view it as “marking our own homework”.
To address this perspective, we are investigating the applicability
of ISO 14068-1:2023, the Carbon Neutrality standard from the
International Organisation for Standardisation (ISO), replacing
the previous British Standard Institute (BSI) PAS2060 standard.
Last year we indicated our exploration of PAS2060 to validate
our net zero pathway which has evolved into an investigation of
the ISO standard.
The ISO standard outlines a framework for organisations to
establish carbon neutrality targets. It emphasises a hierarchical
approach to emissions reduction, prioritising affordable on-site
reductions. Carbon offsets are then used to complement these
reductions, ultimately achieving carbon neutrality. The standard
holds promise for widespread adoption due to its practical
approach and:
The ISO standard outlines the following processes for credible
carbon neutrality:
• Public commitment: Top management publicly commits to
achieving carbon neutrality.
• Carbon neutrality management plan: Organisations develop
a detailed plan, specifying which parts of the organisation will
achieve carbon neutrality. Regular evaluation and adjustments
are essential.
is well-aligned with existing reporting frameworks;
• Carbon neutral report: An annual report provides feedback
on managements’ plans.
provides the opportunity for companies to set their highest
level of GHG ambition, taking into account resources,
stakeholder expectations, national and international policy
commitments and regulatory frameworks; and
• Carbon neutrality claim: This claim is made only once all
remaining emission reduction levers – after on-site mitigation
has been exhausted – have been counter-balanced.
does not prescribe how reductions need to be achieved,
recognising that organisations’ mitigation actions may not
be linear, and rather undertaken in a step-wise manner.
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• Third-party verification: Accredited auditors verify steps
and claims, ensuring credibility.
Sasol has the ability to meet many of these requirements
and is in the process of assessing alignment with this standard
for future reporting.
