Sasol Limited Climate Change Report 2021 - Book - Page 12
A NET ZERO AMBITION
Our Energy Business
Sasol’s Energy Business is a key part of Future Sasol's journey to achieve Net Zero by
2050. Shaped by global and local megatrends, energy demand is expected to grow, with
supply needing to be more sustainable. Our response and strategy takes into account
an accelerated journey, as our just transition gets underway.
• No investments in new coal mines
South Africa is under pressure to decarbonise and so is Sasol. In response, we are
advancing the deployment of mitigation opportunities. These are also creating new
growth opportunities for us and the country, with focus placed on developing value
pools centred on renewable energy, hydrogen and low-carbon solutions.
• Gas as a transition feedstock, with optionality
• Intensified investment in renewables
• Green hydrogen at scale
Through our repositioned strategy, we are poised to take a leadership role in South
Africa's energy transition by leveraging our unique asset base, technological know-how
and human talent, while preserving and growing value.
Preserve, create and deliver value
Sasol's Energy Business strategy: three focus areas
PRESERVE AND DELIVER VALUE
Realise full potential of
Southern African value chain
feedstocks with renewable and
Safe and reliable
GROW NEW VALUE POOLS
Unlock new low-carbon
Transition to lower- and
Phased production of green hydrogen
and derivatives for local supply
Scale green hydrogen and
derivatives for export
Reinvent mobility offering
Sustain and deliver
benefits from Sasol 2.0
Through our Sasol 2.0 transformation programme, we have strengthened our balance sheet with
key financial targets as we move towards Future Sasol. This strategic reset enables us to selffund our transition and preserve and grow value for our stakeholders. In the spirit of enabling an
environment conducive for economic growth and prosperity amid our transitioning, we continue to
engage and collaborate with the South African government. Further details on this focus area can
be found on IR pages 47 and 50.
To achieve our ambition of Net Zero by 2050, we increased our 2030 scope 1 and 2 reduction target
to 30% from the previously set at least 10% as measured off a 2017 baseline. This represents ~ 3x
increase in our ambition delivering an ~ 19 Mt reduction in nine years from 2017's emissions of 63,9
Mt CO2e. This is over and above the already achieved ~10 Mt reduction since 2004.
Increasing our 2030 target and defining our 2050 Net Zero ambition, including our interim
milestone, was a complex task. It involved detailed process modelling, assessments of feedstock
alternatives and varying our product slate within the confines of a highly integrated facility and
aged assets. But we identified opportunities that exceeded expectations. We followed a tailored
target setting and roadmap approach to ensure a scientifically sound, robust and credible process.
See page 16 for our process.
Our priority in this process was to reduce scope 1, 2 and 3 (Category 11) emissions. Beyond 2030,
we identified several actions to achieve our ambition. These include:
Substituting more coal with gas;
Large-scale introduction of renewable energy;
Utilising large volumes of affordable green hydrogen;
Utilising affordable and sustainable carbon feedstocks;
Responsibly scaling down coal exports and transitioning to sustainable fuels;
Deploying affordable carbon capture, utilisation and storage (CCUS); and
CDR offsets, including technology and nature-based sequestration.
Details of our 2030 and 2050 roadmaps are presented on page 14 and 15 of this report. Given the
uncertainty to 2050, we have identified key signposts to inform our decision-making on the most
optimal long-term pathway. The pace at which technology evolves - particularly cost reductions
for green hydrogen and developments in biogenic carbon sources, CCUS and potential market
premiums that sustainable products could attract - are key signposts. Up to 2030, technology
opportunities are more certain.
Portfolio optimisation across the focus areas
Sasol Climate Change Report 2021