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
36
38
45
- 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% |
- 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).
- 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.
- 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
- - 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. |
- See section on decarbonising our operations and risk and opportunities, pages 23 - 28 and 13 -15.
- Re-baselinedour 2017 target base year, removing divestments and including methodological changes; also includes South African Chemicals value chain.
- 200 MW is Sasol's portion of the initial procured 600 MW in partnership with Air Liquide.
- 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.
- An additional ~40 - 60 PJ/a gas.
- 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
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Sasol Ltd. published this content on 31 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2022 10:20:09 UTC.