Sasol Limited Climate Change Report 2021 - Book - Page 40
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CLIMATE CHANGE IN BUSINESS PROCESSES
Engaging on climate policy: positions and industry associations
Assessing alignment with industry associations
In 2021, Sasol assessed 12 key associations against our responsible climate-related advocacy principles, which have been expanded to now include transparency and disclosure (see page 38 for our five principles). This is aligned with our
progression of TCFD reporting. Only relevant associations that undertake climate change advocacy were assessed by reviewing publicly available documents and engaging with their offices, where possible. Importantly, the majority of these
industry associations cite climate change as one of their focus areas, however for the Industry Task Team on Climate Change (ITTCC) it is their primary focus.
Methodology
Membership fees
This year, we mapped our principles against an association’s
climate-related positions (refer to the table below).
We applied our key principles for responsible advocacy
consistently against the industry association positions. In
addition, our methodology was enhanced for greater clarity,
alignment to best practice and to address expectations on
enhanced transparency through inclusion of a fifth principle:
transparency and disclosure.
• In the event that the assessment revealed inconsistencies in terms of
at least one/two of our principles, 'partially aligned' was indicated. In
this instance, further engagement will take place to better understand
positions held and to seek alignment.
Recognising that an industry association’s view will not
always accord with ours, we also review the value-add
of these memberships prior to joining, during active
membership and when renewal is due.
• Associations are considered 'aligned' with our principles where their
support of the Paris Agreement is clearly articulated and the internal
assessment shows congruence to all principles.
• Where more than two principles were not aligned and if the
association was not in support of the Paris Agreement, then 'not
aligned' was indicated.
Sasol pays annual membership fees to industry associations, where required. The fees payable are
calculated according to the constitution of the respective association.
Our assessment results
Of the 12 associations assessed, none were found to be not aligned with our responsible climate-related
advocacy principles. Partial alignment was indicated across some of the relevant associations. This was
by and large influenced by the lack of a clear position on transparency and disclosure, and carbon pricing. The
alignment results are detailed below with an overall self-assessment indicator presenting aligned, partially
aligned or not aligned. Sasol is also a member of non-advocacy associations that support ambitious climate
action in support of the Paris Agreement. These include the NBI, Climate Group's EP100, We Mean Business and
CDP. Nominal membership fees are paid to these associations who support reporting platforms, climate-related
studies on mitigation, adaptation and green financing.
Self assessment of the relevant industry associations' alignment to our responsible climate-related advocacy principles
Association
1. Acknowledgement and
support for climate science
2. Support for the Paris
Agreement goal
3. S
upport of carbon pricing that provides greater
incentives for innovation and low-carbon choices
4. D
evelopment of low and lower-carbon energy
solutions in the form of renewable energy, green
hydrogen, natural gas (as a transition fuel) and
energy efficiency
5. Transparency and disclosure
Reference information
BUSA – "To create a
competitive economy that is
global and brings value for all
South Africans. Committed
to working with government,
social partners and labour
through supporting youth
skills development, education,
enterprise development and
job creation."
Aligned – BUSA’s position
statements have been focused
on steering government to a
net zero ambition and 1,5⁰C
trajectory by 2050. This
position clearly articulates
a commitment to climate
science and the urgency to
transition. BUSA is supporting
programmes that develop the
necessary precedent knowledge
and consensus to mobilise
climate action.
Aligned – BUSA advocates for
an ambitious NDC aligned to
the Paris Agreement. It has
provided recommendations
to the drafting process of
the NDC to increase ambition
beyond the draft text. It
advocates for South Africa
to contribute its fair share
to the global effort to move
towards net zero emissions
by 2050, taking into account
the principle of common but
differentiated responsibilities.
Aligned – BUSA is supportive of carbon pricing
and that it should be used as part of a suite of
policy instruments. It has consistently advocated
for carbon pricing that effectively mitigates
GHG emissions, while demonstrating economic
efficiency. BUSA supports the development of an
effectively designed South African carbon tax, as
part of an integrated mitigation system.
Aligned – Advocating for enabling policy to support
green hydrogen, transition gas, renewables, energy
efficiency and biomass feedstocks. BUSA advocates
strongly for decarbonisation of the electricity grid and
diversification of energy sources away from fossil fuels.
Aligned – BUSA advocates for
transparency and is in support
of TCFD. Learning and training
sessions have been organised
to support business.
Parliamentary submissions, as well as
various regulatory submissions.
Most recently, BUSA has
supported 350 - 420 Mt
CO2e national GHG range as
the NDC.
Energy Intensive User
Group's ITTCC – "To influence
the Energy Industry by
ensuring that the solutions
developed are reliable and
economically sound. The
ITTCC aims to ensure that
the transformation to a
lower-carbon future is done
in a sustainable manner
and protects economic
competitiveness."
Not aligned
Aligned – ITTCC supports the
science on climate change
and the need to act, as well as
advocates for policy-based on
scientific evidence.
Partially aligned
Aligned – Supports South
Africa’s international climate
commitments under the Paris
Agreement taking national
circumstances, developing
status, socio-economic
development and the need
for technology and financing
support into account.
https://www.busa.org.za/businessstatement-on-south-africas-climatechange-and-decarbonisationresponse-and-the-pathways-to-netzero-emissions-by-2050/
2021:
In support of this, BUSA has studied alternative
instruments and mechanisms to develop a more
comprehensive understanding of an economically
efficient and effective carbon pricing system for
South Africa. It has sought to engage positively with
national policy-makers to contribute this knowledge
and advocate for these mechanisms.
Partially aligned – Acknowledges the merit of a
carbon price in the economy in the longer term
and that it promotes a just transition. The ITTCC
advocates for an alternative design to the currently
implemented carbon tax. For example a system that
incentivises mitigation, such as a carbon tax levied
on emissions exceeding a budget.
2020:
Aligned – Supports a lower-carbon transition through
implementation of low-carbon technology and the
roll-out of transition natural gas to complement
intermittent renewable energy, particularly during
peak periods.
The ITTCC engages policy-makers and has developed
supporting studies to demonstrate the basis and
merit of its position, however does not have a clear
position on carbon pricing for the short term. Sasol
will continue to engage to achieve alignment.
Aligned
39
Overall
selfassessment of
alignment1
Sasol Climate Change Report 2021
Aligned – Actively supports
implementation of TCFD
guidelines for member
companies and actively tracks
developments in this space.
Regular knowledge sharing
sessions on evolving best
practices are scheduled.
Various policy submissions. The ITTCC
has provided science-based positions
on multiple activities, including the
proposed national integrated carbon
mitigation system, effective carbon
pricing and appropriate market
mechanisms.
https://ittcc.org.za/
2021:
2020:
Membership
position
Board member
and presiding
Chair on two
sub-committees
nominated by
members.
Regular
membership
and presiding
Chair nominated
and voted in by
members.
Annual
membership fees2
Based on %
turnover
~R 0,17 million
Fixed rate
~R 0.24 million