Sasol Integrated Report 2024 - Book - Page 84
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
BUSINESSES
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
ENVIRONMENT continued
CLIMATE CHANGE
continued
Carbon credits and offsetting
Sasol remains committed to advancing techno-economically feasible on-site mitigation options, aligning with our net-zero aspirations and contributing
to South Africa’s Nationally Determined Contribution (NDC). Recognising the current technical and economic challenges to completely avoiding
or reducing GHG emissions, we continue to consider the strategic use of carbon credits and other market mechanisms essential to offset emissions
that cannot be mitigated immediately. This approach supports our interim objectives, including carbon tax liability, and contributes to the global
preservation of the carbon budget while broader mitigation technologies are under development.
Sasol supports the use of carbon credits in line with regulations
in the markets where we operate, including those for the South
African carbon tax. We have also been exploring the business case
for both generating and using offsets as part of a synergistic
climate management and business-building approach.
tracking of credits that we use today are prescribed and
administered by independent standards, including Gold
Standard, Verra and the United Nations Clean Development
Mechanism, with additional oversight by the South African
Department of Electricity and Energy.
As a result, we transparently disclose the carbon credits that we
use for regulatory purposes and will continue doing so as we
progress on the journey to our net zero ambition. This data is
reflected annually at a project level in our CDP disclosures
( www available on our website www.sasol.com/esg).
Because of the importance of carbon credit integrity, we have
developed an internal Quality Control and Assurance (QCA)
framework that will allow us to apply additional assessments
over and above universal basic carbon credit principles. The
framework, developed with our environmental markets partner
Vertree, is informed by over 35 guidance documents for the
voluntary carbon market. These include the Integrity Council
for the Voluntary Carbon Market’s Core Carbon Principles, the
ISO 14068 Carbon Neutrality Standard and the Voluntary Carbon
Markets Integrity Initiative Claims Code of Practice.
We have been improving our GHG accounting frameworks in line
with best practice guidance for reporting the mitigation benefits
of market mechanisms. This year, we have started reporting our
refer to page 76, whereby
gross and net GHG emissions,
we consider carbon credit retirements in preparation for the
International Financial Reporting Standards on climate-related
financial disclosures (IFRS S2), issued by the International
Sustainability Standards Board (ISSB).
We strive for quality and integrity of the carbon credits that we
use. A carbon credit is intended to represent a metric ton of
emissions avoided, reduced or removed from certified emission
reduction projects. The measurement, verification, reporting and
It is a dynamic resource that will be integrated into Sasol’s
carbon credit sourcing and project origination activities. This
will continue to evolve with external integrity assessment
frameworks, leveraging independent carbon rating platforms
as they mature. This will also allow us to conduct portfolio-,
project-, developer- and methodology-level assessments of
carbon credit quality, to better understand and mitigate
decarbonisation, financial and reputational risks.
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This year, we secured over 3,6 million credits
from nine local projects, mitigating the release
of over 3,6 MtCO2e. In addition, carbon finance
was directed back into the South African
economy to realise additional environmental,
social and economic benefits for local industry
and communities.
This was in support of the Carbon Tax Act,
since 2019, 15 million credits have been
cumulatively retired from local projects,
mitigating the release of over 15 MtCO2e in
the country.
