Sasol Limited Climate Change Report 2021 - Book - Page 37
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CLIMATE CHANGE IN BUSINESS PROCESSES
Governance
Our Board
Sasol's non-binding advisory vote
Climate change is a material
matter and a Group top risk with
ultimate accountability residing
at Board level.
SASOL LIMITED SHAREHOLDERS
Sasol's governance structures
and processes are reviewed
regularly to more deeply embed
climate change management into
mainstream business activities.
This year we made changes to the
terms of reference of the relevant
Board committees, the GEC and
their supporting governance
structures to align with Future
Sasol’s strategy.
• Net Zero ambition, targets and
roadmaps to 2030 and 2050
for scope 1, 2 and 3 (Category 11);
• Performance, reporting and
disclosure against our targets and
roadmaps;
• Progressive advancement of our
disclosures to align with the TCFD
recommendations;
• Monitoring of continued resilience of
Sasol’s portfolio through robust risk
assessments and scenario analysis;
and
• Stakeholder concerns regarding our
decarbonisation approach, including
provision for direct stakeholder
engagement by Board members on
an annual basis.
SASOL LIMITED BOARD COMMITTEES
NOMINATION
AND GOVERNANCE
COMMITTEE
SAFETY,
SOCIAL AND ETHICS
COMMITTEE
AUDIT
COMMITTEE
REMUNERATION
COMMITTEE
CAPITAL
INVESTMENT
COMMITTEE
Diversity of skills on the Board
The Board comprises mostly independent non-executive directors and
recognises and embraces the benefits of having a diverse set of skills amongst
its members. On our Board we have specifically retained the expertise of an
independent non-executive director, with experience on sustainability and
climate change matters. Ms Muriel Dube, the current Chair of the SSEC was also
the former South African government's Chief Negotiator to the United Nations
Framework on Convention on Climate Change (UNFCCC) and further served as
the African representative for technology transfer on the UNFCCC Expert Group
on Technology Transfer (EGTT).
Control/Assurance
PRESIDENT AND CHIEF EXECUTIVE OFFICER (CEO)
GEC
Disclosures
The Board's SSEC has a specific
mandate to address climate change
matters under the umbrella of
sustainability. The SSEC makes
recommendations to the Board for final
approval, which includes the following
climate-related items:
On 14 September 2021, Sasol shareholders, Just Share NPC and Aeon
Investment Management, requested Sasol to present an advisory vote to
shareholders at its 2021 AGM compelling the Company to expand its disclosure
on industry associations involved in climate-related lobbying, policy influence
and engagement of which Sasol is a member from 2022 onwards in accordance
with requirements set out in the request. Sasol management reviewed this
request during the finalisation of our 2021 Climate Change Report and is of the
view that the current disclosure complies substantially with the request. The
Board accordingly resolved not to present the advisory vote to shareholders at
our 2021 AGM. This is in line with the approach of the United States SEC not to
take action against companies that disallow requests for shareholder votes on
matters which they have already substantially implemented.
SASOL LIMITED BOARD
Risks/Opportunities
The Board informs and approves
Sasol’s strategy. Through the
various committees that support the
Board, it ensures risk, performance
and sustainable development
considerations, such as climate
change, are effectively integrated and
appropriately balanced within our
strategy.
At Sasol's 2020 Annual General Meeting (AGM), the Board agreed to a nonbinding advisory vote on climate change matters to be held at our 2021 AGM.
The Board is seeking to draw in shareholders’ perspectives on Sasol’s climate
change response, through a mechanism that is consistent with South African
corporate law and determinations by the SEC of the United States and other
instruments on sound governance. Sasol will table, for endorsement on a nonbinding advisory basis, our climate change ambition, strategy and actions as
contained in this report for the year ended 30 June 2021.
Sasol implemented a new operating model during this financial year,
which involved a comprehensive review of our governance framework.
GEC SUB-COMMITTEES
Sasol undertakes assessments of the Board’s climate change capability and
competencies on a regular basis. At present we remain of the view that this
is sufficiently addressed. In addition, the Board and its committees have the
ability to obtain external and independent professional advise as is necessary
to carry out their duties.
Board training and awareness
Disclosure
Working Group
Capital
Structuring
and Allocation
Committee
Safety
Committee
Sanctions
Compliance
Committee
Ad hoc
mandating
and steering
committees
EXECUTIVE VICE PRESIDENTS (EVPs)
SUBSIDIARIES (WHOLLY-OWNED), ENERGY BUSINESS, CHEMICALS BUSINESS, BUSINESS SERVICES AND CORPORATE CENTRE
SUBSIDIARY (WITH EXTERNAL SHAREHOLDERS) AND JV BOARD SHAREHOLDERS
STAKEHOLDERS
AN ETHICAL FOUNDATION
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Sasol Climate Change Report 2021
The Board undergoes regular training on climate change and wider
sustainability matters. In particular, this has been reinforced since 2017 in
line with a rapidly changing national and international climate change policy
landscape.
Effectiveness and performance of the Board, its committees and individual
directors is evaluated every two years. In alternate years, or as is necessary,
provision is made for reflection by the Board of its performance, including
that of its committees, chair and members. Newly appointed directors
attend a structured induction programme, which includes our climate change
management approach.
Our GEC
The President and CEO is the highest executive decision-making
authority for climate change management at Sasol. Our President
and CEO has in turn delegated authority to the GEC, the highest
collective executive decision-making structure at Sasol.
The GEC is consequently accountable for recommending approval
for the company’s strategy and long-term plans, including climate
change to the Board. Our 2030 and 2050 targets and roadmaps
were also part of the GEC's mandate. The GEC is supported by the
corporate Portfolio Strategy and Sustainability Function, which
includes its climate change management team. Additionally,
support is provided by the business' specialists and experts.