Sasol Limited Climate Change Report 2021 - Book - Page 28
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A NET ZERO AMBITION
Future Sasol: Enabling activities (CONTINUED)
Carbon offsets
Sasol's core carbon offset principles
Certain GHG emissions are prohibitively expensive to reduce today and others are hard-to-abate - this is where carbon offsets play a key role.
Real, verifiable
and permanent
offsets
At Sasol, offsets offer a solution in the transition towards Net Zero emissions ambition and can also realise other environmental and social benefits. We are
developing a pipeline of eligible offset credits and projects to meet compliance obligations in the short to medium term. In the long term, we aim to evolve the
type of offsets we use, focusing primarily on CDRs and technology interventions to:
• achieve Net Zero; and
• promote the development of low-carbon technology solutions.
Offsetting for net zero emissions
Sasol is pursuing two different types of carbon offsetting:
(1) A/R offsets and
(2) CDR offsets.
There is a role for both types of offsets. A/R offsets should ideally be used in the path towards a net zero ambition, while CDRs
are required to achieve a net zero emissions end state. A/R offsets are used to compensate for on-site emission reductions on the
path to a net zero ambition and must meet strict standards in their use. CDRs are required to neutralise hard-to-abate residual
emissions, after significant absolute reductions have already been achieved, to claim net zero. Simply put, to claim net zero
emissions, the amount of GHGs added is no more than the amount taken away following the mitigation hierarchy.
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A/R Projects – “CO2 kept out of the air”
Renewable energy
(displacing fossil
fuel energy)
Low emission
cook-stoves
(fuel switching)
Transport model
shift
Methane capture
and use
We aim to progressively shift our offset portfolio from A/R to CDR
offsets as we get closer to Net Zero. Therefore, credibly claiming a
net zero end state involves:
1. D
ecarbonising our own operations and value chain in line with
our targets;
2. C
ompensating for hard-to-abate emissions using A/R offsets
in the short to medium-term and CDR in the medium- to longterm; and
3. Progressively increasing the use of CDRs to neutralise 100%
of residual emissions remaining after significant on-site
absolute reductions.
Light blue bars show a
reducing GHG inventory due
to on-site mitigation
Forest
management
CDR Projects – “CO2 removed from the air”
Soil carbon
sequestration and
improved farming
Blue carbon –
restoration of ocean
systems
Bio-energy with CCS
• Offsets must be assured to be real (supported
by robust methodologies and independently
verified), additional (reductions would not
have occurred in the absence of the offset
market) and permanent (on-going and will
not be reversed in the future or for which risk
mitigation has been established);
• Offsets procured and developed must adhere
to regulatory eligibility criteria; and
• Retired offsets must be transparently
disclosed to ensure no double counting of
emissions.
• Preferential sourcing of carbon credits
support our shared value aspirations
by realising socio-economic value for
Sasol's fenceline communities and
ecosystems.
• For us, socio-economic value includes
facilitating the creation of jobs,
stimulating entrepreneurial activity,
implementing skills development
initiatives and driving empowerment.
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Taking CO₂ out of the atmosphere using NbS or TbS with storage.
Biological carbon
sequestration
• Carbon offsets must be preferentially sourced2
in line with our shared value remit;
ALIGNING WITH OUR SHARED
VALUE REMIT
Newer technology carbon offsets could include green hydrogen and SAF (still to be proven).
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• Offsets must be used according to Sasol's
mitigation hierarchy, ie on-site mitigation is
prioritised, and only as a last resort to meet
targets and for compliance where allowed;
Using offsets and CDRs to make credible
reduction claims
Reducing emissions from fossil sources using lower-carbon technologies without storage.
Offsets can uplift communities and contribute
positively towards national imperatives
of alleviating poverty, unemployment and
inequality. Without rigorous governance
however, offset projects can have unintended
negative consequences1. Sasol's offset approach
focuses investment on credible offset credits
only, that are subject to a high degree of
verification and assurance. The following core
set of offset principles embed this thinking:
Net zero
DAC with geological
storage
Net zero emissions is achieved if an equal amount of removal offsets are generated compared to operational emissions.
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Refer to
SR
page 37 for further details.
Path to net zero
Dark blue bars
indicate A/R offsets to
compensate emissions
Sasol Climate Change Report 2021
Green bars indicate CDRs
(NbS/TbS) to neutralise
emissions
1.
Issues relating to improper accounting and perverse
consequences, such as increasing GHG emissions instead of
reducing them.
2. Sourced means direct purchase through off-take
agreements or project development, where Sasol is a
partner.