Sasol Limited Climate Change Report 2021 - Book - Page 41
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CLIMATE CHANGE IN BUSINESS PROCESSES
Engaging on climate policy: positions and industry associations
Assessing alignment with industry associations
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
Chemical and Allied Industries’
Association (CAIA) – To
represent and advocate
members’ interests, while
promoting Responsible Care®,
monitor its implementation
and earn public trust for the
chemical industry.
Aligned – Acknowledges the
latest climate science and is
driving urgency for action.
Advocates for governments
role in creating transparent,
consistent and aligned policy
frameworks, based on science
and creating a conducive
investment environment in
South Africa.
Aligned – Supports the goal
of the Paris Agreement and
participates in advocating
for an ambitious NDC,
with relevant supporting
mechanisms.
Aligned – Supports a fit-for-purpose carbon pricing
design, integrated within a holistic policy framework
that does not unduly impact South Africa’s
competitiveness.
Aligned – Supports renewable energy and natural
gas as a lower-carbon transition fuel and a bridge to
a lower-carbon economy. Members have undertaken
voluntary mitigation activities related to increasing
energy efficiency and reducing energy consumption.
Partially aligned – CAIA
supports transparency
however does not have a
position on transparency and
disclosure, as well as best
practice reporting standards.
Sasol will continue to engage
on reporting standards and
greater transparency.
Various policy advocacy positions
and statements formulated through
a dedicated Climate Change Working
Group related to South Africa's
NDC, just transition, availability of
sustainable financing, Climate Change
Bill and climate change mitigation
system (including carbon budgets) available through membership.
South African Petroleum
Industry Association (SAPIA)
– To contribute to policy
formulation, implementation
and a fair framework for all,
such as providing input into
the development of climate
change policy and regulations
including that pertains to the
monitoring, measuring and
reporting of GHG emissions.
Make the transition to cleaner
fuels avoiding any supply
disruptions and ensure that it
is cost-effective.
Aligned – SAPIA subscribes
to a scientific approach to
understanding climate change
and how to mitigate and limit
the effects of climate change.
Aligned – SAPIA is supportive
of the goal of the Paris
Agreement. Many members
of the association are at
the forefront of promoting
net zero ambitions. SAPIA
is supportive of an enabling
legislative environment,
co-operation between organs
of state, civil society and
business, as well as finance to
drive the just transition.
Aligned – SAPIA is supportive of carbon pricing to
drive consumer and business behaviour towards
a conducive environment that ensures a just
transition.
Aligned – Transparency is
supported to outline goals,
directing necessary resources
and training towards the
energy transition.
Various policy submissions.
Minerals Council of South
Africa (MINCOSA) – To play
a leadership role in enabling
the South African mining
sector to achieve its real
potential for investment,
growth, transformation and
development in a socially and
environmentally responsible
manner."
Aligned – MINCOSA has
consistently echoed its
members' acceptance of
climate change science and
the need for the mining
industry to contribute to the
collective effort in adapting and
mitigating the impact of climate
change.
Aligned – MINCOSA has made
clear and concerted efforts to
contribute to the activities of
the UNFCCC and to support
the Paris Agreement. This is
demonstrated by MINCOSA
taking a thought leadership
position in advocating for
conducive climate change and
just energy transition policies
to support the country’s NDC.
Partially aligned – MINCOSA has indicated the
following in its position statement prior to the
adoption of the Carbon Tax Act, “the carbon tax, in
the absence of any other climate change measures
in the overall ‘toolbox’ that includes incentives and
not only disincentives and necessary supporting
regulation, is likely to be damaging to carbon
intensive sectors with no pathways for offsets”.
MINCOSA advocates for
and works with the mining
industry to contribute to GHG
mitigation and adaptation
of communities impacted by
climate change.
European Chemical Industry
Council (CEFIC) – CEFIC and its
members focus resources on
four critical areas to progress
sustainable development,
including the transition to a
lower-carbon economy and
driving resource efficiency
across global value chains.
Aligned – CEFIC supports
the Paris Agreement and
strong action on climate
change in line with the
scientific advice provided by
the IPCC.
2021:
2020:
Its focus is on an integrated climate change
mitigation instrument and not a singular tax,
however they do not have clear position on carbon
pricing.
Aligned – CEFIC supports carbon pricing under the
European Union Emissions Trading Scheme (EU
ETS) that achieves a fair and efficient reformed
ETS and enables the most efficient companies to
manufacture and grow in Europe. Advocates for
revenue recycling to support further emissions
reductions.
CEFIC advocates and
represents the industry in
order to create the right
support and policy frameworks
in Europe and beyond, add
value as a collective compared
to individual companies’
activities.
Aligned – MINCOSA committed to cleaner energy
technologies and renewables. It engaged with
government to address the licensing challenges
faced by mining companies that sought to invest in
self generation capacity through renewable energy
projects.
MINCOSA has also instituted a programme to fast
track the application and adoption of green hydrogen
technologies in the mining industry.
2021:
Board member
Aligned – CEFIC supports affordable natural gas that
could further contribute to the chemical industry’s
GHG emission reductions, contributing to overall
industrial emission reductions with acknowledgement
that natural gas could progressively be replaced by
renewable gas. CEFIC expects clean hydrogen to play a
pivotal role in reducing the GHG footprint of Europe’s
energy and feedstock supply within the transition to
climate neutrality. CEFIC supports renewable energy.
Sasol Climate Change Report 2021
Aligned – CEFIC supports the
recommendations of the TCFD.
Based on %
chemicals
turnover in South
Africa
Based on annual
operating budget
for the company
~R 2, 95 million
Various submissions to government.
Public position paper on carbon tax.
Media briefings.
2021:
2020:
Board member
Based on
percentage of
production
~R 9,66 million
Given the bulk of the emissions in the mining industry
at large being primarily from the use of electricity
generated from coal (scope 2 emissions) MINCOSA has
been calling for concerted effort to decarbonise the
electricity sector.
"For the chemical sector to deliver further emissions
reductions from our operations, access to affordable
low-carbon energy to electrify our operations will
be crucial in the future. However, the current cost to
fully electrify many of our processes is high (between
€20 – 27 billion/year for investment requirements
estimated by Dechema, 2017) and would require
wide scale access to renewable energy sources that
Europe does not yet have today. As such, in this
stage of transition where climate-neutral electricity,
hydrogen, and CCU are not yet broadly available and
globally competitive, the chemical industry sees the
use of natural gas with CCS as a promising pathway to
transition our operations towards climate-neutrality,
as the International Energy Agency and others have
also identified."
40
Board member
Annual
membership fees2
Through an engagement, it was
indicated that an energy transition
position is being finalised for release.
SAPIA confirmed support of member
company positions on net zero.
Aligned – MINCOSA fully
supports transparency,
reporting and disclosure
on ESG performance and
climate change. Its member
companies prescribe to
various disclosure and
reporting initiatives such as
TCFD, GRI and ESG reporting.
Membership
position
~R 5, 1 million
2020:
Sasol will continue to engage and advocate for the
just transition, using effective and efficient carbon
pricing as part of a suite of measures.
Aligned – CEFIC supports
the Paris Agreement and
strong action on climate change
in line with the scientific advice
provided by the IPCC.
Aligned – SAPIA advocates for the three-pillars
of collaboration – conducive policies, finance and
technical innovation that leads to less carbon emitting
energy alternatives for use. This includes not only the
use of renewables but also energy efficiency, CCUS and
transition fuels towards a cleaner low-carbon future.
Overall
selfassessment of
alignment1
Various climate-related position
papers on topics such as supporting
the EU Green Deal and Climate
Neutrality, GHG emissions reporting
and financing the transition of a low
carbon economy
https://cefic.org/policy-matters/
climate-change-and-energy
/eu-carbon-market-and-ets-link
-tbc/
https://cefic.org/app/
uploads/2021/06/Cefic-views-onthe-Commission-draft-DelegatedAct-on-the-obligation-for-certaincompanies-to-publish-non-financialinformation.pdf
2021:
2020:
Direct
membership
on sub-groups
that are product
oriented
~Euro 0,0075
million +
Per sub-group,
of which we are
member of seven