Sasol Integrated Report 2022 - Book - Page 48
INTRODUCTION | ABOUT SASOL
STRATEGIC OVERVIEW
DELIVERING
CREATING VALUE
GOVERNANCE AND REWARDS
ADMINISTRATION
SASOL CHEMICALS AT A GLANCE (CONTINUED)
Growing with our unique chemistry (continued)
Safety
As always, our commitment to working safely
and operating reliably remains a top priority.
Our FY22 safety results were mixed.
We began the year on a tragic note with the passing
of a service provider in Sasolburg. While our
recordable case rate and injury severity score both
regrettably increased, we saw improvements in two
other safety metrics: lost work day case rate; and
fires, explosions and releases severity rate.
We continue to focus on being accountable and
engaging each other in safe work practices.
These practices are supplemented by technology
and training and emphasise understanding and
preventing risks at the job site. We will continue
to learn from our experiences and apply those
lessons across the organisation in our pursuit of
Zero Harm.
Delivering on transformation imperatives
During our Capital Markets Day in September 2021,
we highlighted three transformation imperatives
to advance our Future Sasol ambition. In FY22, we
made significant progress towards delivering them.
Our second imperative relates to leveraging
renewable feedstocks for low-carbon solutions.
Our manufacturing facilities in Marl and Brunsbüttel,
Germany, and Augusta, Italy, earned ISCC-PLUS
certification for the use of mass balanced bio-based
and recycled feedstocks in the production of
alcohols, ethoxylates, linear alkylbenzenes and
derivatives, positioning us to increase our lowcarbon product portfolio. We also delivered our first
sustainable surfactant made from renewable raw
materials to the European market – a major step
forward in creating more sustainable liquid laundry
detergents and other common household products.
And we partnered with Holiferm Limited to jointly
develop biosurfactants made through fermentation,
using yeast to convert vegetable oils and glucose
into final product.
We have secured a combination of physical and
virtual power purchase agreements that, when
fully in place, will deliver 57,6 ktpa of CO2 reduction
annually at our Eurasian manufacturing sites.
In addition, our facility in Brunsbüttel began
obtaining 100% of its external electricity
from renewable sources. We also announced plans
to double our use of “green steam” at Brunsbüttel
from a first-of-its kind biomass cogeneration
facility to be built adjacent to our site and
operating by 2025.
Looking ahead
Total Chemicals sales volumes for FY23 after
adjusting for the Q3 FY22 disposal of the European
Wax Business, are expected to be 5% – 10% higher
than FY22. The increase is largely due to better
operational performance and supply chain issues
easing. We expect further pricing and demand
▪ Received ISCC-PLUS certification at three largest
European manufacturing facilities
▪ Delivered on Sasol 2.0 transformation targets
▪ Introduced 143 new products and cultivated
459 new customers
▪ Substantially completed asset divestment
programme
Our performance in FY22 gives us confidence that
we can meet whatever challenges FY23 presents.
SUSTAINABILITY
• Strive for Zero Harm
• Reduce our GHG footprint
by enhancing and delivering
on our reduction roadmaps
BUILDING OUR CULTURE
• Invest in our people – building
capabilities for growth
and future readiness
• Grow diversity, equity,
inclusion and belonging
by driving a committed
agenda with clear actions
• Advance the customer experience
• Develop a strong innovation
pipeline
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• Develop sustainable solutions
with our customers
• Deliver on Sasol 2.0
commitments, with
continued focus on LCCP
value uplift
• Restore and enhance
value through operational,
supply chain, and commercial
excellence
CUSTOMER EXPERIENCE
• Create value for our customers
• Demonstrate the value
of our chemistry in answering
the sustainability call
DELIVERY AND GROWTH
• Embrace a collaboration mindset
that leverages the innovation
and experience of our colleagues,
to act with speed and resilience
• Celebrate our successes
PEOPLE
▪ Continued unlocking LCCP value, with
adjusted EBITDA from Chemicals America
greater than US$0,5 billion and 70% higher
than previous year
With our LCCP fully operational, and a streamlined,
customer-centric organisational structure in place,
we are building on the strength of our global assets
to deliver value and drive results. Chemicals now has
a solid foundation for growth, especially in end
markets being reshaped by marketplace megatrends.
SAFETY
• Promote physical, emotional
and mental wellbeing of our
workforce
Delivering sustainable operations
HIGHLIGHTS
We will focus on the factors within our control,
pursuing our priorities of safety, building our culture,
customer experience, sustainability, and delivery
and growth.
2023 PRIORITIES
Our third transformation imperative was to continue
the Lake Charles Chemicals Project (LCCP) ramp-up
and unlock value from Sasol 2.0. To that end,
Adjusted EBITDA from Chemicals America increased
by > 70% and above US$0,5 billion for the first time.
We are proud of that progress but are not finished
yet and are continuing to focus on LCCP value uplift.
Chemicals is also answering the sustainability
call by reducing the impact of our operations.
We have set a goal to reduce our scope 1 and
scope 2 greenhouse gas emissions by 30% by
2030, with the use of renewable energy being
a key lever. In FY22, we made noteworthy
progress and concluded multiple renewable
PPAs and a CO2 neutral steam supply agreement
amounting to 72 ktpa CO2e reduction for our
operations in Europe.
volatility from continued geopolitical instability,
excess inventories from China, supply chain
disruptions, and the uncertainty surrounding
Russian energy supply to Europe. Higher inflation
and interest rates will continue to impact consumers,
leading to potential demand contraction.
PLANET
Simultaneously, we will unlock additional value
and cost leadership in the parts of our portfolio
where we can lead by creating a competitive cost
base by focusing on operational, supply chain
and commercial excellence and in so doing lay
the foundation for green transition pathways.
The first imperative related to positioning our
Lake Charles site as a sustainability hub. With
development-ready land, advantaged feedstock
access, prime transport infrastructure and our
reputation as a reliable partner, Lake Charles is
uniquely positioned to lead the way to a more
sustainable chemicals industry. As an example,
in June 2022, we announced a pre-feasibility study
with Lotte to evaluate a facility to produce electrolyte
solvents for electric vehicle batteries.
PROFIT
where we have a unique competitive advantage,
differentiating chemistry, and/or market leadership.
• Launch modern Enterprise
Resource Planning and continue
to automate and digitise
• Grow our leadership positions
through investments,
partnerships, and acquisitions