Sasol Limited Climate Change Report 2021 - Book - Page 7
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INTRODUCTION
Message from the Chair of the SSEC
Climate change is at the centre of
Sasol’s strategy and is a top risk for which
the Board has ultimate accountability.
Muriel Dube
Chair of the SSEC
Dear stakeholders,
As the world continues to grapple with a new normal, Sasol has reached a crucial and defining phase in its climate change management response. We have taken
bold decisions aimed at positioning Sasol as future fit and to enable a just transition.
In my inaugural message as Chairman of the SSEC, Sasol
acknowledged the step-change required to contribute
to a decarbonised future. We undertook to draw on
our legacy of turning challenges into opportunities
through technological innovation. We further undertook
to investigate pathways to substantially increase our
level of ambition underpinned by climate science and
commercially viable technological options. In this
report, Sasol outlines the actions that underpin its
commitment to decarbonisation and a just transition.
Decarbonising for a sustainable future means Sasol
is fundamentally transforming itself to be resilient
and sustainable for the future. In line with the former
commitment to increase ambition, the Sasol Board
approved a significant increase in the 2030 GHG target
for the Energy Business, from at least 10% to 30% off
a 2017 baseline, excluding Natref. We also approved a
target of a 30% emission reduction for our International
Chemicals Business by 2030 and, most importantly,
the company's ambition to achieve Net Zero emissions
by 2050. These targets are reflected in our associated
roadmaps and bodes well for our response to the global
urgency to reduce GHG emissions and meet the Paris
Agreement goal.
Through our engagement with our stakeholders, we
continue to deepen our understanding and broaden
our response to tackling climate change and shape
our strategy for long term value creation. We value
our engagement with stakeholders and thank them
for their perspectives, which goes a long way toward
improving our management of ESG issues, as well as
our disclosure and reporting.
Over the past year, Sasol has been actively engaging
shareholders, including Climate Action 100+ (CA 100+).
These engagements have shaped our climate change
management approach.
The Board continues to manage climate change as a
Group top risk. The company is pursuing a roadmap to
achieve an ambition of Net Zero emission by 2050 and
address uncertainty into the future. Core to our climate
change response is meaningfully reducing, in absolute
terms, scope 1, 2 and 31 emissions as we reduce our
exposure to business transitional risks. In a similar vein,
we are developing and implementing solutions that
reduce the physical risk of climate change and increase
the resilience of our communities.
In the recent while and in the immediate aftermath
of the publication of the IPCC 6th AR, there have been
innumerable reports globally of severe weather events,
such as extreme fires and devastating floods that
have had catastrophic impacts on communities and
societies. The ability of countries to respond to these
disasters varies disproportionally resulting in wealthier
nations being better equipped to respond. Africa
and the majority of developing countries face acute
vulnerabilities and are less able to respond, recover and
adapt, underscoring the vital need for public-private
partnerships and collective action.
Dealing with climate change is multi-faceted and
complex. However, the Board is well-equipped with
the requisite skills to manage this strategic issue. The
Board also regularly undertakes the necessary upskilling
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and training, with expertise at our disposal should it be
needed.
Since 2018, we have strengthened our governance of
climate change matters. Through my chairmanship
of the SSEC, the Board committee responsible for
managing sustainability, climate change is placed at the
centre of our decision-making in exercising our fiduciary
duties.
Targets have been implemented to which management
will be held to account by the Board. We have
strengthened our oversight through robust governance
and are implementing remuneration measures as part
of a deepening commitment to combat climate change.
In support of the IPCC 6th AR, which indicates that
large-scale reductions in GHG emissions are required
to ensure that the Paris Agreement goal is still within
reach, Sasol is grasping the window of opportunity that
remains to act and contribute towards the global effort
to achieve a Net Zero emissions ambition by 2050.
Muriel Dube
Chair of the SSEC
20 September 2021
1. Category 11: Use of sold energy products
Sasol Climate Change Report 2021