Sasol Integrated Report 2023 - Book - Page 47
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
CREATING VALUE
PERFORMANCE
GOVERNANCE AND REWARDS
ADMINISTRATION
TRADE-OFFS CONTINUED
MATERIAL MATTER:
MATERIAL MATTER: Environmental stewardship
Strengthening relationships with stakeholders and regulators
5
Continued competitive returns from
our foundation business is critical
in the Reset phase. This can only be
achieved when we adhere to regulatory
and policy frameworks and maintain
our licence to operate and, at times,
go beyond compliance.
Our capital allocation priorities allow for
maintenance capital that is specifically directed
to ensure that our operations are safe and
protect our licence to operate. This falls within
the first order of capital allocation.
CAPITALS IMPACTED
Our Future Sasol strategy is clear about
where we are heading. This involves
progressing towards a sustainable
future using our Fischer-Tropsch (FT)
technology, which may also entail
closure of certain facilities. As a
result, close collaboration and strong
relationships with our stakeholders
and regulators are critical.
Long-term
impact
Developed and implementing capital allocation priorities that guide our decision
making processes. We remain within the capital allocation for maintenance
capital
Short-term
impact
Accessing and leveraging expertise and commitment of our people with requisite
technical skills
Long-term
impact
Less capital available during Reset for expansionary opportunities in our FischerTropsch (FT) technology, but in the long term there is potential for this business
to be cash generative and profitable
FC
Maintenance capital is substantial and means that financial capital is currently
limited for potential growth opportunities
HC
Sasol ecoFT is one of our springboards to
sustainability. Based on partnerships, it has
the potential to be a strong technology
platform for the future. We are also pursuing
other opportunities and solutions to produce
sustainable products and ultimately deliver
a more sustainable future. This requires
significant investment and is not without risk.
The alternative is to meet our climate change
commitments by closing down our FT facilities
over time.
CAPITALS IMPACTED
Short-term
impact
FC
TRADE-OFF
TRADE-OFF
4
A shortage of appropriate and relevant skills amid greater global competition
Limited job opportunities
HC
Upskilling our people through skills transfer (including through our partnerships)
and bursaries
Challenges in retaining and attracting the people with the appropriate skills
Contribute to the reduction of greenhouse gas emissions
Secunda Operations remains a coal-feedstock facility
NC
Agnostic FT technology creates the opportunity for an extended lifetime
for the Secunda and Sasolburg facilities
Construction started on the 69MW Msenge Wind Farm, we signed a PPA
in January to supply Sasolburg Operations with renewable electricity
NC
Repurpose existing Sasol facilities and their supporting infrastructure
Set water use targets for Sasolburg and Secunda sites
MC
Plans to decarbonise existing facilities; should these plans fail, we may have
to close them down earlier than planned
Completed biodiversity footprint assessment at Secunda and Sasolburg sites
Setting circularity baseline for Sasol
MC
Compliance with emission standards remains an operational challenge
that will affect production volumes in the medium- to-longer term
Working to improve relationships with regulators
SC
Improving Sasol’s credibility and making us a more attractive employer
and partner with whom to collaborate
SC
By developing our proprietary technology, we continue to grow our intellectual
capital
IC
Opportunity to create partnerships using our feedstock-agnostic FT technology
to decarbonise our own processes and other related technologies
Improved credibility with other stakeholders
IC
Encouraging and facilitating innovative and solutions-focused thinking
Decrease in capital
SASOL INTEGRATED REPORT 2023
46
Increase in capital
Ongoing use of capital