Sasol : CLIMATE CHANGE REPORT

SASOL LIMITED	Delivering
	Delivering with Purpose
CLIMATE CHANGE REPORT	FUTURE SASOL

for the year ended 30 June 2022

CCR

INTRODUCTION	RISKS AND OPPORTUNITIES	OUR FUTURE SASOL STRATEGY

CONTENTS

GOVERNANCE

DATA AND ASSURANCE

OUR SUITE OF REPORTS

INTRODUCTION

Sasol at a glance	2
Our climate change journey	3
Snapshot of our approach	4
Year in review	5
Progressing efforts to achieve our targets	6
Messages from the Chairperson of the SSEC and Sasol's	7
President and Chief Executive Officer
Sasol's commitment to climate action	8
Responding to stakeholders issues	9
Improving our emissions reporting	11

RISKS AND OPPORTUNITIES

Risk management	13
Resilience of our portfolio	16

OUR FUTURE SASOL STRATEGY

Implementing the Future Sasol strategy	20
Decarbonising our operations	23

OUR FUTURE SASOL STRATEGY (CONTINUED)

Decarbonising our value chains

Capital allocation and green funding

Effecting a just transition

Adapting to climate change

GOVERNANCE

Governing climate change

Executive remuneration

Climate advocacy and policy

DATA AND ASSURANCE

Performance data

TCFD index

Independent assurance report to the Directors

of Sasol Limited (Scope 3) Year ended 30 June 2022

CA 100+ assessment of Sasol's climate change response

Additional information

Appendix: Sasol's scope 3 emission categories

1. 1
   36
   38

45

1. 7

56

5 7

58

59

60

6 1

IR	Integrated Report
	Concise communication on Sasol's strategy, governance, performance and outlook
	and how these lead to the preservation and creation of value over the short-,
	medium- and long-term.

SR	Sustainability Report
	Communication on Sasol's environmental, social and governance (ESG) performance.
CCR	Climate Change Report
	Information on Sasol's climate change risk management process, response
	strategy and summary of work underway to address climate change risks
	and opportunities.
CAPS	Climate Advocacy and Policy Supplement
	Information on Sasol's advocacy efforts and participation in policy advocacy bodies.
AFS	Annual Financial Statements
	A complete analysis of the Group's financial results, with detailed financial
	statements, as well as the Remuneration Report and Report of the Audit Committee.
20-F	Form 20-F
	Our annual report filed with the United States Securities and Exchange Commission
	(SEC), pursuant to our New York Stock Exchange listing.

Director's approval		Our three-pillar
The Safety, Social and Ethics Committee (SSEC) of the Sasol	emission-reduction
framework
Limited Board (the Board) is responsible for ensuring the
integrity of our sustainability and climate change reporting.		REDUCE
We confirm that the 2022 Climate Change Report addresses
all material matters relating to climate change from a		EMISSIONS	People Planet
double materiality perspective (see IR	page 36) and		TRANSFORM
fairly represents the Group's climate change performance.
The SSEC, authorised by the Board, approved this report		OPERATIONS	FUTURE
		SASOL
and its publication on 26 August 2022.			SHIFT THE	Profit
Signed on behalf of the SSEC:			PORTFOLIO
Muriel Dube		Our prioritised SDGs are
	indicated; this report focuses
Chairperson of the SSEC		on SDG 13 and 17.
African Business
Leadership Coalition	Applying the United
(ABLC)	Nations (UN) Global Compact
In pursuing collaboration	Ten Principles, TCFD and
and strengthening	prioritising five Sustainable

partnerships, Sasol accepted	Development Goals (SDGs).
the invitation to join the
Founding Group of the ABLC.
	SASOL CLIMATE CHANGE REPORT 2022 1

These reports are available on our website, www.sasol.com, or on request

from Investor Relations. Contact details available on website.

Our suite of reports are informed by the following standards and initiatives. We have sought alignment with key reporting expectations and compliance with all relevant legal requirements.

	REPORTS
The International Integrated Reporting Framework	IR	AFS
South African Companies Act 71 of 2008, as amended	IR	AFS
Johannesburg Stock Exchange (JSE) listings requirements	IR	AFS
King IV™ Report on Corporate Governance	IR	AFS
for South Africa, 2016
International Financial Reporting Standards (IFRS)	IR	AFS	20-F
Global Reporting Initiative (GRI) Sustainability	SR	CCR
Reporting Standards
Task Force on Climate-related Financial Disclosure (TCFD)	IR	SR	CCR
UN Advanced Reporting Criteria and SDGs	SR	CCR
United States Securities and Exchange Commission	20-F
rules and regulations
Sarbanes-Oxley Act of 2002	20-F
JSE Sustainability and Climate Disclosure guidelines	IR	SR	CCR

INTRODUCTION

RISKS AND OPPORTUNITIES

OUR FUTURE SASOL STRATEGY

GOVERNANCE

DATA AND ASSURANCE

SASOL AT A GLANCE

Sasol is a global chemicals and energy company. We harness our knowledge and expertise to integrate sophisticated technologies and processes into world-scale operating facilities. We strive to safely and sustainably source, produce and market a range of high-quality products globally. We are committed to sustainability and accelerating our transition to a net zero1 ambition by 2050.

PEOPLE

Pursue zero harm, undertake a just transition and improve our culture

Sasol's operating sites and related greenhouse gas (GHG) emissions contribution

NORTH

AMERICA

PLANET			PROFIT
Advance sustainability		Deliver and maximise value
UNITED		THE	EURASIA
BELGIUM
KINGDOM	NETHERLANDS	1,2%
		GERMANY
IRELAND
FRANCE		SLOVAKIA	UZBEKISTAN

		SPAIN
2,1%	MEXICO	ITALY

QATAR

JAPAN

CHINA

TOTAL GROUP GHG SCOPE EMISSIONS
SPLIT FOR 2022 (SCOPE 1, 2 AND 3)	BRAZIL
2		SCOPE3
SCOPE1 AND	63%
	37%

TOTAL REGIONAL AND OPERATIONAL EMISSIONS

SPLIT FOR 2022 (SCOPE 1 AND 2)

UNITED ARAB	INDIA
EMIRATES

NIGERIA

SINGAPORE

MOZAMBIQUE 1,3%

SOUTH AFRICA

Energy					Chemicals		95,4%
AFRICASOUTH	Secunda	Sasolburg	Mining	Natref2	MOZAMBIQUE2	EURASIA		AMERICANORTH
83,8%	8,1%	1,4%	2,0%
	1,3%		1,2%		2,1%
	Other strategic business units and Functions3
		0,1%
		95,4%

1. Net zero for Sasol is to significantly reduce emissions to the point where only hard-to-abate emissions remain or are zero. Any residual emissions will be neutralised using Carbon Dioxide Removals (CDR).
2. Mozambique, Natref and some Other strategic business units and Functions are excluded from our scope 1 and 2 GHG target for 2030, however Natref's products are included in our scope 3 target.
3. Includes emissions from pipeline operations.

Legend

Operations

Sales

Projects at the pre-feasibility, feasibility or implementation phase

Research activities

Exploration

Technology licensing services

SASOL CLIMATE CHANGE REPORT 2022 2

	INTRODUCTION		RISKS AND OPPORTUNITIES	OUR FUTURE SASOL STRATEGY	GOVERNANCE	DATA AND ASSURANCE
	OUR CLIMATE CHANGE JOURNEY
	SCOPE 1 AND 2	5% reduction by 2026 for Sasol Energy	20% reduction by 2026 for Sasol Chemicals
	MILESTONES

					Reduce absolute scope 1	Reduce absolute
					and2 emissions by	scope 3 emissions by
					30%	20%	3
					by 20301	by 20302
TARGETS
	1.	For theSasol Energy and Sasol Chemicals 3.	For scope 1, 2 and 3: Category 11; applicable
					Businesses(excluding Natref and Mozambique)	to Sasol Energy and Chemical Businesses
				2.	For Category 11; applicable to Sasol Energy	(excluding Natref and Mozambique)

100%

purchased renewable electricity for Sasol Chemicals by 2030

(excluding Nanjing and self-generation)

1 200 MW4

renewable energy for Sasol Energy by 2030

(excluding load-factor, applies to Southern African operations including Mining)

4. Megawatts (MW)

~7% GHG reduction5

from 2017 baseline

5. For combined Sasol Energy and Chemicals baseline and largely due to lower production and operational issues

25% pay

weighting linked to ESG targets

	Concluding agreements for
	>600 MW6
	renewable energy for Southern
REDUCE	African operations before end-2025
	6. Initial 600 MW procured in partnership with
	Air Liquide of which 200 MW is Sasol's portion
	Achieved
	ISCC8 PLUS certification
	of sustainable feedstocks for major European
TRANSFORM	operations at Marl, Brunsbüttel and Augusta
	8. International Sustainability and Carbon Certification (ISCC)

Introduced

296 000 GJ7

renewable electricity at Sasol Chemicals

7. Gigajoules (GJ)

First volumes of

Sustainable products sold

from Sasol Chemicals

Achieved

100%

external renewable electricity for BrunsbÜttel, Germany

	R15 - 25 billion
Negotiating term sheets	committedcumulative
40 - 60 PJ/a	capitalexpenditure to
9
Liquefied Natural	2030for the emission-
reductionroadmap
Gas (LNG) as transitional
feedstock
9. Petajoules (PJ) per annum

Final Investment	Sustainable Aviation
Decision (FID) for first	Fuel (SAF)
green hydrogen project	four Memorandums of Understanding
initial volumes expected from	(MoUs) signed by Sasol ecoFT
with European partners
Sasolburg towards the end-2023

SHIFT

Next generation Fischer-Tropsch (FT) catalyst

launched CARE-O-SENE research partnership between Germany and South Africa for enhancement of the fourth generation (G4) catalyst optimised for SAF production

1. - score for CDP Climate

TCFD reporting

Just transition

roadmap in development

SASOL CLIMATE CHANGE REPORT 2022 3

INTRODUCTION	RISKS AND OPPORTUNITIES	OUR FUTURE SASOL STRATEGY	GOVERNANCE	DATA AND ASSURANCE

SNAPSHOT OF OUR APPROACH

SASOL'S DECARBONISATION APPROACH FOR A JUST TRANSITION1

THREE-PILLAREMISSION-REDUCTION FRAMEWORK

ADAPTATION RESPONSE

REDUCE OUR EMISSIONS

• Short- to medium-term reductions, including switching to low-carbon energy sources and additional process and energy efficiency improvements.

		TRANSFORM OUR OPERATIONS				SHIFT OUR PORTFOLIO
• Integrating cleaner alternative feedstocks, such as gas and green hydrogen.			• Creating sustainable products for new value pools using our
• Employing optimised processes and sustainable carbon feedstocks to			FT technology.
	reduce our emissions profile, where viable.			• Actively reviewing equity in assets not aligned with our long-term strategy.
• Collaboratively finding opportunities to beneficiate our concentrated			• Enabling the creation of a new green hydrogen production and market
	carbon dioxide (CO2) sources to unlock broader societal value.			footprint.

RESILIENCE TO PHYSICAL WEATHER IMPACTS11

• Proactively responding to the

physical risks associated with

climate change, including

2030 AND 2050 SCOPE 1 AND 2 GHG EMISSION-REDUCTION ROADMAPS

• Assess and define interventions to reduce emissions in the short (up to 2025) to medium term (2026 to 2035) and transform our operations in the medium to long term (2036 to 2050).

Sasol Energy
2017	2021	2025	2026	2030	20509

extreme weather events.

• Continuing to take steps

to understand and

respond to current and projected

future weather and climate risk

for our business, employees

and surrounding communities.

		Process and energy efficiency
	Scope 1 and 2		600 MW	-5%					-30%7
	~63 MtCO2e2		Renewable	Scope 1 and 2					Scope 1 and 2
			energy3
			~60 MtCO2e			5	;	~44 MtCO2e
				600 MW4
					Additional gas	-20%	8
					Renewable	partial boiler
					energy in	turndown		Scope 3
Sasol Chemicals				a phased	and asset		~28 MtCO2e
			approach and	optimisation6
North America
				energy
2017			2026	efficiency			2030

Decarbonising and creating new value

pools (Feedstock

transformation - gas, green hydrogen, more renewable energy and biogenic carbon. Green hydrogen derivatives such as SAF and green

methanol (page 26))

NET

ZERO10

20509

ENABLING INITIATIVES AND PARTNERSHIPS

•	Using quality carbon offsets
	as a last resort measure to
	complement our three-pillar
	emission-reduction framework.
•	Developing a just transition

Scope 1 and 2	0,6 MtCO2e	Renewable	Process	Carbon	-20%	Advanced	-30%7	Interventions	NET
and energy	capture	Scope 1 and 2	technologies	Scope 1 and 2	being
1,1 MtCO2e	LCCP growth	electricity	under	ZERO10
			efficiency	utilisation	1,4 MtCO2e	assessment	1,2 MtCO2e	developed
Eurasia				and storage
2017				(CCUS)	2026		2030		20509
Scope 1 and 2		Low-carbon	Process	-20%		-30%	7	Interventions	NET
Renewable	feedstocks		Process		being	10
1,1 MtCO2e	(biomass, hydrogen	and energy	Scope 1 and 2	Scope 1 and 2	developed	ZERO
electricity	electrification
	and natural gas)	efficiency	0,9 MtCO2e	0,8 MtCO2e

roadmap with prioritised

interventions focusing on

affected workers and

communities.

• Developing a global network

of research, partnership

and community initiatives

to accelerate the change.

• Communicating with our

stakeholders through transparent

climate change disclosures.

1. See section on decarbonising our operations and risk and opportunities, pages 23 - 28 and 13 -15.
2. Re-baselinedour 2017 target base year, removing divestments and including methodological changes; also includes South African Chemicals value chain.
3. 200 MW is Sasol's portion of the initial procured 600 MW in partnership with Air Liquide.
4. Having sold part of the Air Separation Units (ASUs) to Air Liquide, 800 MW represents Sasol's consumption of the total 1 200 MW target for the Secunda site.
5. An additional ~40 - 60 PJ/a gas.
6. Reduces scope 1, 2 and 3 emissions.

CCUS7. Targets include CO2, methane (CH4) and nitrous oxide (N2O), representing 95% of total emissions.

8. Baseline 2019, Category 11 emissions, sales from Sasol and Natref's products included, representing >80% of total scope 3 emissions.

9. Net zero ambition follows a strict mitigation hierarchy prioritising on-site reduction before offsets.

10. In the best case scenario the fossil-fuel-free vision materialises, with no need for CDRs, while the worst case net zero scenario leaves ~ <35% hard-to-abate residual scope 1, 2 and 3 (Category 11) emissions, which will require CDRs to neutralise.

11. See pages 42 - 44 for adaptation approach.

SASOL CLIMATE CHANGE REPORT 2022 4