Sasol Integrated Report 2023 - Book - Page 46
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
TRADE-OFFS CONTINUED
MATERIAL MATTER: Resetting for resilience
MATERIAL MATTER: Sustainably decarbonising for Future Sasol
3
Fixing and stabilising our foundation
business is critical for success.
Ensuring capital is available in the
short term to undertake this in relation
to our sustainability commitments
is key.
We work to secure an improved financial and
competitive position through prudent financial
risk management and deleveraging and
strengthening the balance sheet in the short
term to ensure a competitive and sustainable
position over the long term.
CAPITALS IMPACTED
TRADE-OFF
TRADE-OFF
2
Enabling a just transition through
our decarbonisation journey
while continuing to create shared
value for our stakeholders.
We aim to create shared value even while
we accelerate our transition away from coal,
in support of the Paris Agreement, the
United Nations’ Sustainable Development Goals
and the Ten Principles of the UN Global Compact.
This requires significant investment in
technology and new skills for the future.
CAPITALS IMPACTED
Short-term
impact
Long-term
impact
FC
Reduced returns to shareholders, including pension funds, in the short term.
However, by stabilising our foundation business we create the basis for
competitive returns medium- to-longer term, as well as the ability to undertake
our transition and reinvention
HC
A reduction in employee benefits as well as limited opportunities for
rapid career growth and significant investment in skills in the short term.
However, medium- to-longer term, this should have a positive impact on
the stocks of human capital
NC
A steadily improving financial position, with marked improvement in the
medium- to-longer, enables us to invest in decarbonisation efforts and to
ensure greater resource efficiency
MC
While working to secure a stronger financial posture, our ability to invest in
infrastructure is constrained. However, as this improves, we are better able
to commit more significant resources to this capital
Short-term
impact
Investing in repurposing facilities and equipment to align with long-term
competitive advantage through Fischer-Tropsch (FT) technology to produce
sustainable products
FC
Retaining, developing and attracting new skills aligned with the Future Sasol
strategy
HC
Redundancy of some skills and jobs, particularly those in our coal value chain
Continued reliance on coal and other non-renewable resources in the short term,
with associated emissions from operations, and then delivering against our
roadmaps to achieve our ambition to reach net zero by 2050
NC
Integrating renewable sources of energy and pursuing circular economy
opportunities and feedstocks
Transforming facilities for the production of low-carbon products
MC
SC
In the short term, our efforts to reset for resilience negatively impact the
performance of the pension – and other – funds that invest in Sasol.
Longer term, this should turn around. The same is true for our contribution
to revenue authorities
Fostering entrepreneurship and skills development through our just transition
initiatives as we move away from coal
Identified actions to increase the feedstock stability and production throughput
of our facilities
Decrease in capital
Increase in capital
Constructive engagement with stakeholders including employees and organised
labour; shareholders and providers of capital; customers; governments and
regulators; communities and societies; and non-governmental organisations
SC
Improved credibility with our stakeholders, greater engagement with our
financial partners and increased support through bursaries
IC
Risk of some assets, equipment and infrastructure becoming stranded
IC
Incubating new technologies, products and green economy opportunities
Commercialising and licensing FT technology innovatively to create low-carbon
value pools
Ongoing use of capital
SASOL INTEGRATED REPORT 2023
45
Long-term
impact