Sasol Climate Change Report 2023 - Book - Page 53
INTRODUCTION
TRANSFORMING FOR RESILIENCE
GOVERNANCE
CLIMATE ADVOCACY AND POLICY
DATA AND ASSURANCE
JUST TRANSITION
Our approach
Sasol’s vision, particularly in
the areas where we operate, is
to contribute to a more resilient
and inclusive society that embraces,
enables and empowers the vulnerable.
Our definition of a just transition accords with
South Africa9s Presidential Climate Commission
(PCC) Just Transition Framework and is based on
Sasol9s unique place within the economy and
society:
" A shared value proposition comprising an
inclusive transformation of our business,
people and society, as we decarbonise and
transition to a thriving Future Sasol.
Implementing our decarbonisation pathways
will have negative socio-economic impacts
unless systematic, targeted and affirmative
steps are taken. These impacts will mostly relate
to phasing down our coal usage in the medium
and long term and could have implications
for our workforce, communities and suppliers
including small, medium and micro enterprises
in South Africa.
Sasol is aware of these potential outcomes and
is committed to working deliberately to create
and support programmes that will exploit
green-economy opportunities that can deliver
positive socio-economic impacts as we
transition to a low-carbon future.
It was critical that Sasol
develop its roadmap
within the context of
national circumstances,
taking into account push
and pull factors, which
necessitated a phased
just transition roadmap.
Sasol’s just transition roadmap reflects the series of phased steps we will take to enable a holistic just
transition which maximises social and economic opportunities while mitigating disruptions. It is guided
by a clear decision-making process, overseen and implemented by a dedicated Just Transition Office (JTO).
The Office integrates, enables and coordinates various just transition initiatives and thinking across the
businesses and other functional areas.
Work on phase 1 of the roadmap has been completed
with the following results emerging from the
diagnostic work:
" South Africa9s just transition is challenged by
economic inequalities, poverty, unemployment
and energy insecurity, which weigh heavily on
expectations of a just transition.
" Policies and requirements for a just transition are
being crafted while undertaking a national just
transition, making it difficult to have full clarity on
what the expectations will be beyond broad principles.
Phase 2 is focused on framework development
and will include unpacking the following elements:
• Strategy and risk management – develop an
integrated and optimised just transition approach.
• Policy development and alignment – align our just
transition approach with national frameworks.
• Opportunity development – co-create opportunities
with key stakeholders.
" A dynamic approach will need to be adopted to
address shifting expectations and an evolving
policy landscape.
• Stakeholder management and communication
– enable inclusivity in the development and
implementation of our just transition approach.
" No-regret initiatives will feature more prominently
in the short to medium term, aligned with the
decarbonisation roadmap and the timing of mitigation
interventions.
• Partnership management – leverage partnerships
for scale, impact and pace.
" Innovative funding mechanisms will need to be
available for implementation of impactful just
transition initiatives and to accelerate deployment.
" The just transition is in its early stages, with most
companies still developing their strategies and plans.
Information and knowhow are therefore limited with
8learning by doing9 being critical, as well as leveraging
lessons learnt from others.
• Programme management and reporting –
transparent reporting on our just transition
progress.
Phases 2-4 will be periodically iterated to ensure that Sasol9s
approach remains relevant and that we continue to prioritise and
execute opportunities that have the potential for greatest impact.
Mitigation interventions and levers
By examining interventions used in mine closures and reviewing other actions of our peers, we identified five main categories
of levers. These levers show promise in terms of impact, scalability and applicability:
Facilitate job creation (internal and external)
Explore financial support mechanisms
Upskill and reskill individuals to take on new
job opportunities
Provide well-being support
Facilitate access to jobs (eg career
‘concierge’ services)
Secunda Operations, South Africa
SASOL CLIMATE CHANGE REPORT 2023
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