Sasol Sustainability Report 2023 - Book - Page 37
INTRODUCTION
SUSTAINABILITY PERFORMANCE AGAINST OUR FOCUS AREAS
GROWING SHARED VALUE 3 SASOL IN SOCIETY
DATA AND ASSURANCE
ANNEXURES
GROWING SHARED VALUE // Sasol in Society // Responsible sourcing and procurement CONTINUED
ECONOMIC TRANSFORMATION
Sasol aims to achieve a diverse, transformed,
sustainable and high-performing supplier base
by accelerating and supporting the development
of small to medium enterprises (SME).
Sasol Italy has always focused on the search for
and creation of solid and mutually beneficial
relationships with third-party companies,
ensuring an understanding of each other9s needs
while respecting policies of fairness and congruity
of prices. Underlying Sasol Italy9s approach are
sound principles and robust governance
processes, which ensure the effective application
of shared values in order to act ethically honouring
commercial commitments.
Sasol9s presence in Mozambique over the years
has been a driver of socio-economic development
through our investments and operations. A key
aspect of this has been enabled through Sasol9s
commitment to local content.
We partnered with the Government of
Mozambique to develop a five-year local content
plan for the financial years 2020 to 2024 and
recently reviewed this.
In South Africa: we embrace the principles
of sustainability through socially and
environmentally responsible practices, while
fostering local economic growth, innovation
and sustainable job creation. We have developed
SME programmes to promote the economic
participation of the local community.
SR
Refer to page 37: Economic inclusion
ZERO TOLERANCE FOR UNETHICAL BEHAVIOUR,
BRIBERY AND CORRUPTION
PERFORMANCE
We proactively assess human rights, both at our
operations and at suppliers. We address
employee non-compliance appropriately in line
with our disciplinary codes. We encourage all our
suppliers and stakeholders to 8speak up9 against
any suspicious unethical and economic crime
activities to ensure that both Sasol and our
suppliers adhere to the provisions and principles
of ethical sourcing and procurement. We develop
and inform suppliers on environmental, social
and governance requirements.
Economic transformation
Ethical interaction in day-to-day cooperation
with all suppliers is still of utmost importance
and suppliers are required to operate within the
ethical and legal parameters stipulated in the
Sasol Supplier Code of Conduct as well as the
Anti-bribery and Corruption (ABAC) and business
human rights policies. To continue the fight
against economic crime, we have shared these
minimum requirements in two separate training
modules on the Sasol Supplier Management
Ethics available on our website:
WWW
www.sasol.com/suppliers/ethics
We continued to regularly communicate with
suppliers on ethics, ABAC and BHR to emphasise
the importance of compliance with these legal
requirements. We also implemented a risk
analysis process for BHR. This is now part of the
supplier application and compliance process.
In South Africa:
" We increased our spending with 100% Blackowned Small, Medium and Micro Enterprises
(SMMEs), by more than 40% in Secunda and
Sasolburg;
" We provided funding of R98 million to 19 suppliers;
" We spent R38,8 million developing suppliers;
" We actively track our spend with SMMEs.
In FY23, we spent R13,4 billion with 1 305 SMME
suppliers. This represents 19% of our Preferential
Procurement spend;
" The private sector is supporting the South African
government9s localisation drive and has committed
to a R250 billion public/private localisation
partnership over the next five years. Of this,
Sasol has committed to deliver R680 million.
So far, we have delivered R233 million via import
replacements and have a number of long-term
projects in place; and
" Our preferential procurement statistics include
spending of R41,7 billion with Black-owned
businesses and R28,5 billion with Black womenowned businesses.
In Italy:
" In Augusta, we spent ¬23,6 million with local
suppliers, a 39% increase.
In Mozambique:
" For FY23, Sasol exceeded its local content
commitments for power purchase agreement
(PPA) operations by more than US$6 million
(actual US$35,8 million versus a target of
US$29,6 million), representing 91% of the
total spend with local suppliers;
of the US$257,4 million in awards to date
having been awarded to Mozambique registered
and owned companies;
" A certification (ISO9001:2015) programme
was developed. 30 companies will be enrolled
on the certification programme by the end of
FY25. Five companies, of which three are from
Inhambane, have been selected for the 1st phase;
and
" Spend with Mozambican companies have improved
since the previous drilling campaign. To date,
the spend amounts to US$550,1 million with local
companies, representing 95% of Mozambican
companies.
Ethics and compliance
" In FY23, the number of South African-based
suppliers trained on ethics and compliance
increased to 3 542, or 66% of our registered
suppliers. In addition to the 3 287 ABAC
risk assessments completed, 1 047 BHR risk
assessments were concluded.
" For the Eurasian operations, we started BHR
due diligence of suppliers representing 80%
of Eurasian spend.
" We disqualified seven suppliers where evidence
of Broad-Based Black Economic Empowerment
fronting was found.
Renewable Electricity procurement
To date, we have signed six PPAs:
" Three onshore wind projects totalling 360MW and
two solar photo-voltaic projects totalling 218MW
wheeling electricity to Secunda;
CCR
Refer to CCR page 38 for more information
" 138 Mozambique-owned companies, represented
by more than 200 people, already participated
in our ESD programme;
" After signing the PPA in January 2023, construction
began on the 69MW Msenge Emoyeni Wind Farm
near Bedford, Eastern Cape. The project reached
financial close in March 2023. It is the first utilityscale private wind farm in South Africa that will
wheel its power across the national electricity grid;
and
" We disbursed more than US$1,2 million to
41 SMME, of which 11 are women-owned;
" Eurasian Operations concluded a number of PPAs
to drive CO2 reduction.
" We have an enterprise and supplier development
(ESD) programme and a SMME development fund,
specifically for companies based in Inhambane;
" We exceeded the local content targets for the
Production Sharing Agreement area, with 82%
SASOL SUSTAINABILITY REPORT 2023
36
CCR
WWW
Refer to CCR page 38 for more information
For more information, refer to www.sasol.com
