Sasol Integrated Report 2022 - Book - Page 27
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
DELIVERING
GOVERNANCE AND REWARDS
ADMINISTRATION
3
MM
Transforming
for resilience
Choosing either to allocate capital or conserve cash
in the short to medium term to enhance Future Sasol’s
sustainability and position and enable long-term returns
to stakeholders.
We work to secure an improved financial and competitive position through prudent financial risk
management and deleveraging and strengthening of the balance sheet in the short term to ensure
a competitive and sustainable position over the long term.
CAPITALS IMPACTED
TRADE-OFF
TRADE-OFF
TRADE-OFFS (CONTINUED)
4
MM
Strengthening
relationships
with
stakeholders
Investing in the further development of our Fischer-Tropsch
(FT) processes to deliver a sustainable future or closing
down the FT facilities that are responsible for the bulk of
our emissions profile.
By establishing Sasol ecoFT, we are working to drive innovation which will develop Sustainable Aviation
Fuel ecosystems and chemical feedstock option to produce sustainable products and ultimately deliver a
more sustainable future. However, this requires significant investment and is not without risk, as success
is not guaranteed. The alternative is to meet our climate change commitments by closing down our FT
facilities over time.
CAPITALS IMPACTED
Improved cash conservation
Investments required mean that incubating Sasol ecoFT is not profitable for now
Reduced returns to shareholders, including pension funds, in the short term
In the long term, there is potential for this business to be cash generative and profitable
Negative impact on the performance of pension funds in the short term
By developing our proprietary technology, we grow intellectual capital
Reduced tax contribution to revenue authorities
Potential to contribute in a significant way to global decarbonisation pathways in the
aviation sector in the long term, and green hydrogen production at Sasol’s operations
Improved credibility with our stakeholders
Repurpose existing Sasol facilities and supporting infrastructure
Greater engagement with our financial partners
Failure to economically decarbonise existing facilities will result in us having to close it
down over the longer term
Maintained support of bursaries
Employee benefits suffered in the short term
Success would improve Sasol’s credibility and make it a more attractive employer
and partner
We divested of certain assets and facilities
Positive progress will increase employment opportunities.
Potential to contribute to the reduction of carbon emissions in the long term
Over the long term, an improved financial position enables us to invest in decarbonising
and ensuring greater resource efficiency as well as investment in infrastructure,
technology and skills
If Secunda Operations and Sasolburg Operations were to be mothballed, they would
impact negatively on the natural environment
Possible job redundancies in the long term
A shortage of appropriate and relevant skills amid greater global competition
Upskilling our people through skills transfer (including through our partnerships)
and bursaries
New employment opportunities
Decrease in capital
Increase in capital
SASOL INTEGRATED REPORT 2022
26