Sasol Limited Climate Change Report 2021 - Book - Page 27
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A NET ZERO AMBITION
Future Sasol: Enabling activities
Just transition
Within the company and where possible worker transition will be enabled through six well-established mechanisms:
A flexible Net Zero reduction roadmap to 2050, with optionality engrained by design, allows us to continue creating
value and 'justly transition'. We aim to achieve this by sustaining employment, addressing negative socio-economic
impacts and contributing to more resilient communities. By and large, we attribute this to our People, Planet, Profit
framework, which is at the core of our strategy and governance approach.
Fossil fuel-dominated economies are particularly exposed to climate change transition impacts and the cost of
inaction is likely to be more severe than responding to climate change. Importantly, an effective just transition should
be supported by national financing and policy frameworks.
For Sasol, our transition is about our people and communities and therefore is being undertaken in a just manner. The
principle of leaving no one behind continues to shape our thinking. Future reports will focus on our just transition
plans and programmes as these mature through our recently constituted Just Transition Office.
Redeployment
Balancing negative impacts by delivering
positive benefits through a tailored just
transition response and leaving no one behind.
Leveraging public and private partnerships
to deliver economies of scale benefits across
our operational regions.
Sasol’s International Chemical Business has a smaller, more highly skilled workforce that is not
exposed from a coal perspective. Therefore, our socio-economic impacts are anticipated to be
low to 2030. These operations are in developed countries and we aim to leverage the stronger
economic frameworks available should there be impacts.
Chemicals
Sasol’s Energy Business will see socio-economic impacts as we progress to our 2050 Net Zero
ambition that are being managed through detailed plans under development. Up to 2030, we
do not foresee material socio-economic impacts based on the manner in which the mitigation
levers are being implemented. Unmitigated impacts could be appreciable post 2035 for our Mining
and Secunda operations, hence our concerted effort in planning for the transition. Plans and
interventions are being investigated and deployed to reach critical mass to minimise negative
impacts. The NBI/BUSA Climate Pathways Study evaluated job loss for the coal mining sector to
be as large as 270 000 - 320 000 on a direct, indirect and induced basis. It also highlights the
importance of localised plans being targeted at the areas where impacts are felt, in this case
Mpumalanga. In addition, noteworthy is that other mining sectors may also experience some
growth. This concurs with findings based on our own analysis.
Energy
NBI/BUSA Climate Pathways Study:
petrochemicals sector analysis
500
0
30
14
332
2
47
285
164
19
Direct
Lower limit
443
Indirect
705
1 312
Induced
Total
• Leveraging our Sasol Foundation and redirecting its focus towards securing skills for
the future.
• Driving, with other business bodies, national
just transition studies to contribute to evidencebased policy development and decision-making.
• Working closely with tertiary institutions for
vocational level labour force development for
the future.
• Redirecting a portion of Sasol's
entrepreneurship, apprenticeship and internship
programmes towards growing skills of the
future. In 2021, we spent a total of R175,7 million1
on skills development.
1. Total spend which covers South Africa and Mozambique
Growth opportunities in
FT sustainable solutions
Revision to
technical and
academic
programmes
Relocation
incentives
• Identified future value pools, which present
opportunities for job creation and positive contribution
to the growth of the South African economy (see graph
below for potential job creation opportunities). These
plans will be detailed in future reports.
400
300
200
100
0
2020
2030
Year
2040
Upper limit
Source: NBI/BUSA Climate Pathways Study, Petrochemical Sector
Sasol Climate Change Report 2021
• Signed a Memorandum of Cooperation with
the IDC to accelerate commercialisation of the
green hydrogen economy in South Africa. From a
just transition perspective, this partnership will
focus on skill-set development and job creation
benefits.
• Signed a Memorandum of Understanding
with Eskom to collaborate on synergistic just
transition opportunities.
• Pursuing 40% localisation in South Africa in our
renewable energy procurement programme.
• Investigating opportunities associated with
declaring Renewable Energy Development Zones
in Mpumalanga and the possibility for solar and
wind manufacturing hubs.
Creating Shared Value
2050
Source: IHS Markit, Super H2igh Road
Scenario for South Africa Report, 2021
26
Re-skilling
programmes
Partnerships
SA hydrogen economy
1500
1000
Skills development
Job opportunities (‘000)
Number of jobs at risk (‘000)
2000
Income
protection and
social welfare
These mechanisms, however, do not address the glut of skills needed for a low-carbon future in the sectors of green
hydrogen, renewables and other low-carbon technologies. Targeted programmes and partnerships are being prioritised
and are under development.
Particularly in South Africa, our transition will result in negative socio-economic impacts, if unplanned and left unmitigated. This requires
a coordinated response from the early stages of our transition and must account for issues of inequality, poverty and unemployment
alleviation.
The Paris Agreement articulates the criticality of a transition that accounts for the impacts on workers as economies shift towards a
low-carbon future. We are transitioning in a responsible manner and, to support our roadmaps, are also developing plans to grow jobs
through new low-carbon sectors, developing skills of the future and mitigating induced impacts in the areas in which we operate.
Early retirement
• Leveraging on-going programmes within our
communities. Engagements will begin to codevelop targeted transition programmes with our
affected employees and communities.
• Established a Centre for Shared Value Management
(CSVM), which will help realise our shared value
aspirations. The CSVM facilitates the creation of
socio-economic value mostly for our employees
and communities through partnerships while
creating business value for Sasol.