Sasol Limited Climate Change Report 2021 - Book - Page 11
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A NET ZERO AMBITION
Future Sasol: A sustainable agenda (CONTINUED)
Managing the transition within our corporate portfolio
Sasol recognises the demand
for sustainable products
in an ever-changing world.
We review our portfolio to
participate more in sustainable
growth opportunities, while
managing risks associated with
our current operations.
The triple bottom line of People,
Planet and Profit, is central
to Sasol's strategy. Our longterm strategic direction is to
significantly decarbonise and
realise low-carbon value creation.
FUTURE SASOL IS DEFINED BY TWO STRATEGIC BUSINESSES,
ENERGY AND CHEMICALS
Future Sasol
We have optimised our operating
model and updated our strategy
making us more agile to respond
and adapt to changes in our
external environment.
We are positioned to be closer to
the customer.
To achieve this, the corporate
portfolio will evolve to address
the changing external
landscape. In the short term,
we will continue to focus on
restoring the balance sheet
and shareholder returns,
maintaining our licence to
operate and decarbonisation.
Energy Business
Chemicals Business
Growing with our
unique chemistry
Decarbonise our operations
Lake Charles to full potential
Grow new value pools
Innovate with customers for
sustainable solutions
Leverage advantaged and
differentiated Sasol FT technology
for sustainable products
Shift to higher margin
specialty solutions
Play a key role in SAF
commercialisation
Preserve competitive and
sustainable returns
Future Sasol leverages our existing businesses and scale, while developing the
FT sustainable solutions business to advance growth.
The existing Energy Business is a key component of our portfolio today, a large
revenue generator and the biggest coal consumer. It is also the most climateexposed business (transition risk).
Our Chemicals Business is located in South Africa, Europe, Asia and North America.
In South Africa, chemicals are produced from our integrated Energy value chain.
Emissions associated with this part of the Chemicals Business are incorporated in
the Energy Business GHG target and roadmaps. The International Chemicals Business
is a growing part of our portfolio, has a smaller GHG emissions profile, mainly uses
lower-carbon feedstocks and is more vulnerable to climate change weather impacts.
Despite the smaller emission profile, we have also set ourselves emission reduction
targets for 2030.
We are aiming to establish a business to grow FT sustainable solutions: Sasol ecoFT
that is dedicated to accelerating sustainably certified PtX products, focusing on the
SAF and sustainable chemicals markets. With over 70 years of innovation, research,
commercialisation and operations experience, we have a competitive advantage to
provide cost effective end-to-end solutions to meet projected global sustainable
product demand. We are leveraging our partnership with Haldor-Topsøe and Technip
Energy to develop proprietary technology solutions to maximise carbon efficiency in
the PtX arena. We have also identified incubator projects for further development.
Definition
of Victory
FT sustainable solutions:
Sasol ecoFT
Leading the energy
transition in South Africa
Deliver sustainable
returns over the
long term to all
stakeholders
Building sustainable businesses with
our advantaged FT technology
We are embracing
Net Zero while
preserving and
creating value, and
investing in people
Enabled by
Delivering
Unlocking
Sasol 2.0 to
full potential
operational and
commercial
synergies
Further details on our organisational design can be found on
In the short term, by resetting our business, we are laying the foundation for our
just transition and growing value. In the medium term, we will gain momentum in our
transition, drive quality earnings from the existing businesses and in parallel seed
new businesses through disciplined capital allocation to reinvent ourselves.
FUTURE BUSINESS IN THE PROCESS
OF BEING ESTABLISHED
IR
Inspiring
Leveraging
our highly skilled
and talented people
our unique
FT technology
Driving
quality earnings with
disciplined capital
allocation
page 12.
Our planet metrics
Our strategic
targets
Metric
A holistic set of People,
Planet and Profit targets,
milestones and ambitions
have been set for shaping
Future Sasol and tracking
our transition. IR For the
full set of metrics, please
see pages 5 and 14.
Our planet targets,
milestones and ambitions
provide a set of metrics
against which stakeholders
can measure our progress.
We have chosen four planet
metrics for our climate
change response and found
that in addressing climate
change, we also can address
other ESG issues. Hence,
the stronger bias to climate
change metrics.
Our capital allocation framework is adapting to address Future Sasol's strategy and
the changing priorities facing our business, aligned with our purpose.
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Sustainability capex 1
Business
Point of Departure
Energy and
–
2026
Milestone
–
Chemicals
Energy3
63,9 Mt CO2e (2017)
Chemicals
1,1 Mt CO2e (2017 Eurasia)
1,74 Mt CO2e (2017 Americas)
Energy5
35,6 Mt CO2e (2019)
(201
Chemicals
TBC
Energy
–
40%
Chemicals7
–
100%
Scope 1 and 2 emissions
2030
Target
2050
Ambition
10 – 15%2 Vast majority
5%
30%
Net zero
20%
30%
Net zero
–
20%
Net zero
Scope 3 emissions
Scope 3 baseline development underway
80%8
100%
% renewable electricity 6
1.Sustainability capex refers to capital associated with sustaining through lower-carbon
feedstocks, transforming the existing portfolio and investments in new sustainable
businesses.
2.Equates to ~ R25 - R35 billion (bn) cumulative total capital up to 2030, inclusive of
gas feedstock and the Energy Business roadmap costs (Transform capital).
3.
Excludes Natref which will be addressed together with Total our JV partner.
Sasol Climate Change Report 2021
4.1,1 Mt CO2e baseline + 0,6 Mt CO2e for Lake Charles Chemical Project (LCCP) growth.
5.Scope 3 emissions relates to sold energy products only (ie Category 11).
6.Energy and Chemicals business targets cover >70% total electricity demand for the
Sasol Group.
7.Renewable electricity: excludes our operations in Nanjing and self-generation.
8. Excluding load factor and metric relates to the full Secunda site.