Sasol Climate Change Report 2023 - Book - Page 27
INTRODUCTION
TRANSFORMING FOR RESILIENCE
GOVERNANCE
CLIMATE ADVOCACY AND POLICY
DATA AND ASSURANCE
THE FUTURE SASOL STRATEGY CONTINUED
Our evolving operating context is
impacting our strategy.
PERFORMANCE AMBITION, VALUE CREATION LEVERS AND MULTI-YEAR OUTLOOK
Recent events are showing cracks in global
integration, by and large the result of the
Russia-Ukraine war, increased cross-border
trade restrictions and challenges in global
supply chains slowing access to key
components required in the energy
transition.
Delivery agenda
Develop agenda
Initiatives ready for
execution
Monitoring of signposts
DYNAMIC RESOURCE ALLOCATION
Metric
Business
Sasol applies the externally developed Living Strategy
approach, which we implemented and reported on in
2022 (see our 2022 CCR ). Using this approach, the
executive management team was able to define key
priorities in response to a rapidly changing operating
environment. Relevant data were consistently
gathered and evaluated for frequent decision-making
given the volatility we dealt with over the past year.
SUSTAINABILITY
CAPEX1
Energy and
Chemicals
In an effort to ensure agility, we adjusted our emphasis
across the Reset, Transition and Reinvent phases of
the Future Sasol strategy. It was agreed that the
business needed to refocus on the Reset phase as a
means to return to sustainable performance. We
identified a series of initiatives to improve value
creation and set a foundation for the Transition and
Reinvent phases.
SCOPE 3
EMISSIONS
Managing the gap
Point of departure
Energy3
SCOPE 1 AND 2
EMISSIONS
% RENEWABLE
ELECTRICITY7
1.
Our strategy remains unchanged; however our
efforts are focused on improving our ability to deliver
competitive returns and manage the pace of our
transition and growth.
Dynamically adapt the
strategy to keep pace with
our operating reality
Collaborative delivery
dialogues to track progress
and accelerate delivery/
remove roadblocks
Internally, Sasol is grappling with changes in coal
quality and challenges in its South African supply
chains, which have resulted in lower-than-planned
production. This is translating into an emerging
performance gap relative to our targets. As a result,
we are redoubling efforts in the Reset phase to
manage this gap and ensure delivery, focus and
realism, returning the company to a sustainable path.
As we implement interventions to Reset the
business, we will continue assessing our robustness
using scenario modelling and identifying strategic
moves to achieve our set ambitions.
Frequent updating and
assessment of unresolved
strategic issues
‘LIVING STRATEGY’
APPROACH
Focused dashboards
with a few critical key
performance indicators
Geopolitical conflict has resulted in higher than
expected commodity energy prices while chemical
prices have seen a downturn. These developments
impacted Sasol’s ability to realise its projected
revenue and profit targets for 2023.
2.
3.
4.
5.
6.
7.
8.
9.
–
–
63,0 MtCO2e (2017)4
1,1 MtCO2e (2017 Eurasia)
1,7 MtCO2e (2017 United States)5
Chemicals
Energy6
35,6 MtCO2e (2019)
Chemicals
To be confirmed
Energy
Chemicals
2026
Milestone
10 – 15%2
2050
Ambition
Majority
-5%
-30%
Net zero
-20%
-30%
Net zero
–
-20%
Net zero
To be confirmed
80%9
–
8
2030
Target
–
100%
100%
Sustainability capital expenditure refers to capital associated with sustaining production through lower-carbon feedstocks, transforming the existing portfolio
and investments in new sustainable businesses.
Approximately R9 billion in capital expended to date on lower-carbon feedstocks.
Excludes Natref, which will be addressed together with our JV partner.
Re-baselined our 2017 target base year, removing divestments and including methodological changes.
1,1 MtCO2e baseline + 0,6 MtCO2e for Lake Charles growth.
Scope 3 emissions relate to sold energy products only (Category 11), including Natref’s products.
Targets for Sasol Energy and Chemicals cover >70% of total electricity demand for the Sasol Group.
Renewable electricity relates to purchased external power and excludes our operations in Nanjing and self-generation.
Excluding load factor and relates to the 1 200MW in the Energy roadmap, of which 800MW is Sasol’s portion and 400MW Air Liquide’s.
Chlor-alkali plant, Sasolburg, South Africa
SASOL CLIMATE CHANGE REPORT 2023
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