Sasol Limited Climate Change Report 2021 - Book - Page 4
Future Sasol: The global operating context
Climate change is a defining challenge of our time, with impacts threatening our critical ecosystems, habitats and resources. Sasol
supports the Paris Agreement and its calls for higher ambition. We have deepened our commitment to this cause through our updated and
newly-developed roadmaps, targets and ambition for the short, medium and long term.
Global GHG emissions must halve by 2030 and reach net zero carbon dioxide emissions (CO2) by 20501. Countries and companies are
required to contribute to meet these global reduction requirements, with differences anticipated in the reduction trajectory and timing
depending on national circumstances. In August 2021, the Intergovernmental Panel on Climate Change (IPCC) released its 6th Assessment
Report (6th AR), which confirms that human-induced warming is unequivocal and that if we achieve net zero and stay at net zero, warming
will stabilise2. Today, the global community is out of sync with this goal given where global emissions are and where they need to be. THIS
REQUIRES CONCERTED EFFORT FROM US ALL TO ACHIEVE THIS GOAL. Developed and developing countries alike are stepping up their
ambitions to do more, faster. In addition, developed countries are required to support developing countries to achieve greater emission
This year we launch our 2050 net zero³ emissions ambition ("Net
Zero") and Future Sasol strategy, which places us on a trajectory
towards a significantly reduced GHG emissions profile. We have plans
to deliver significant reductions in scope 1, 2 and 3 (Category 11)
emissions by 2030.
Future Sasol is premised on producing sustainable fuels and chemicals, using
our proprietary technology and expertise, while contributing to a thriving planet,
society and enterprise. This will see Sasol transform and decarbonise, in particular
our Secunda and Sasolburg Operations as outlined in our roadmaps.
With this vision in mind, we have:
• significantly increased our 2030 target from at least 10% to 30% for scope 1 and
2 emissions for our Energy Business as we progress towards Net Zero by 2050;
• set a 2030 scope 3 target, aiming for a 20% emission reduction from the use of
energy products for our Energy Business as we progress towards Net Zero for
these emissions by 2050; and
• set a target to achieve a 30% reduction of scope 1 and 2 emissions by 2030 for
our International Chemicals Business as we progress towards Net Zero4 by 2050.
Sasol's target for a 30% scope 1 and 2 emission reduction by 2030 is in support
of accelerated action to curb climate change. We have concrete plans to directly
reduce emissions by ~25%, through known, available technologies. With additional
improvements in technology, efficiencies in our process and the introduction of
lower-carbon feedstocks, we are confident that more reductions are possible. In
addition, we are progressing partnerships, seeking to leverage technology and
market development opportunities, and have a capital allocation framework in
place that facilitates the transition to a low-carbon future, while preserving value.
We are executing against our targets and will continue to keep our stakeholders
updated on our progress in future reports.
1.Global warming of 1,5°C: an IPCC Special Report on the impacts of global warming of 1,5°C above pre-industrial
levels and related global GHG emission pathways, in the context of strengthening the global response to the
threat of climate change, sustainable development, and efforts to eradicate poverty (Special Report on 1,5°C).
2.IPCC, 2021: Summary for Policymakers. In: Climate Change 2021: The Physical Science Basis. Contribution of
Working Group I to the Sixth Assessment Report of the IPCC.
3.Net zero for Sasol is to significantly reduce emissions to the point where only hard-to-abate emissions remain
or are zero. Any residual emissions will be neutralised using Carbon Dioxide Removal offsets.
4. Excluding scope 3 emissions.
5. Off a 2017 baseline and excluding Natref.
6.The Chemicals Business operating units situated in Secunda and Sasolburg are integrated into the energy value
chain and are therefore included in the Energy Business target.
7. Off a 2019 baseline.
8. Excluding the South African Chemicals operations.
In September 2020, the South African government approved the establishment of a Presidential Climate Commission (PCC) to coordinate
the country’s transition. It proposed an increase to the national target for higher emission reductions by 2030. This national ambition
will need to be met while addressing poverty, inequality and unemployment, which is at an all-time high in a COVID-impacted environment.
An enabling and conducive environment that accelerates climate action is slowly developing. We believe that the PCC will provide the
imperative for more directives, such as the recent positive announcement increasing the licence-free threshold for embedded generation
to 100 MW. Sasol is steadfast in our commitment to reducing GHG emissions. We believe that the transition to net zero is for and about
people, as supported by the International Energy Agency (IEA). The energy transition holds promise for South Africa and Sasol as we pivot
away from coal and contribute to a sustainable future.
Sasol’s largest GHG emissions originate from our coal-to-liquids (CTL) facility
in Secunda, South Africa. To reduce these emissions, we have developed a Just
Transition Approach (see page 2) that considers South Africa’s national context.
Our decarbonisation strategy is integrated into the fabric of the South African
economy. We see opportunities to leverage some of the country’s greatest
endowments, including wind and sun for energy, Platinum Group Metals, our mining
expertise and relatively young population – to successfully transition to a more
sustainable energy future. This positions a just transition and potentially unlocks
new value chains and economic activity to move South Africa forward.
As an energy champion in the country, we are focusing on unlocking opportunities
for a net zero and justly transitioned economy. We are laying the foundation
to grow a green hydrogen economy in South Africa and using Sasol's ecoFT
business to potentially grow into attractive local and global sustainable fuel and
chemical markets. In light of this, achieving Net Zero offers win-win opportunities,
whereby mutually beneficial mitigation options are being prioritised for Sasol and
Climate change management is central to our strategy. Reducing GHG emissions,
transforming our operations and shifting our portfolio to products more suited to a
low-carbon world are the cornerstones of our strategic plans. We have explored
many routes to decarbonise and create value, integrating technical aspects and
socio-economic benefits to deliver the most plausible pathways to achieve Net Zero
for our operations by 2050.
reduction in scope 1 and 25
Sasol Climate Change Report 2021
Our International Chemicals Business is actively developing products and
solutions that meet customer needs in a low-carbon society. Our chemical products
positively contribute to sustainability and demonstrate circularity within the value
chain. The recent sale of a portion of our Base Chemicals assets in Louisiana, United
States to LyondellBasell strengthens our balance sheet and allows us to grow our
specialty chemicals focus. Our Ziegler alcohol value chain is a key enabler to help
our customers meet consumer demand for sustainable products. In addition, this
technology enables our customers’ products to work in less energy-intensive
Our strategic outlook takes into account the changing requirements of our
stakeholders, the markets in which we operate and our current financial and
operating environment. Future Sasol is guided by key SDGs to deliver on our
purpose of 'Innovating for a better world'.
We prioritise SDG 13 and 17; taking action to combat climate change and
partnerships to help us achieve greater climate ambition, respectively. We
also contribute to SDG 7, which includes increasing our share of renewable
energy, improvements in energy efficiency and enabling growth of clean energy
technologies. We aim to procure 1 200 MW of renewable electricity for our Secunda
site by 2030 and 100% purchased renewable electricity in our European and
American operations by 2026.
We are excited by the possibilities that come with embracing climate action as an
reduction in scope 3: Cat 117
reduction in scope 1 and 25