Sasol Limited Climate Change Report 2021 - Book - Page 9
A NET ZERO AMBITION
Future Sasol: A sustainable agenda
Support of the Paris Agreement
Sasol's climate change positions:
• We support the objectives of the Paris Agreement;
• We accept mainstream climate science assessed by the IPCC
for net zero CO2 to be reached by 2050;
• We acknowledge that business has a role to play in
addressing and managing the risks and uncertainties of
climate change; and
• We also recognise the importance of adaptation and
resilience to a changing climate.
Our target-setting approach centered on the three-pillar emission-reduction framework
Sasol's target setting and roadmap development approach
What is expected?
What can we achieve?
Holistically assess and phase options
People, Planet and Profit lens
Accordingly, we are reducing our GHG emissions and have placed
ourselves on an accelerated path to take action and progressively
improve our performance.
Sasol's emission reduction approach is holistic and takes into account the
national context within which we operate. The availability of mitigation,
regulatory landscape and incentive structures differ across the geographies –
either accelerating or slowing the pace of transition.
Our International Chemicals Business' response in developed countries is
informed by the developments in these regions. Emerging technology, evolving
policy and the regulatory and financial landscape, as well as market drivers will
significantly shape our emission reduction roadmaps into the future. Notable
regulatory developments in the last year include the United States re-joining
the Paris Agreement, China’s announced ambition to be carbon neutral by
2060 and the agreement by the European Union to more ambitious reduction
targets by 2030. In collaboration with the chemical industry associations to
which we belong, we are developing responses which consider the context of
our many operations.
Sasol’s GHG emission profile is largely associated with our operations in South
Africa (more than 95% of emissions). South Africa is a developing country,
where climate change challenges must be addressed amid national priorities
for the alleviation of poverty and unemployment, which are both significant,
considering very low rates of economic growth. These are further complicated
by the country’s lack of transition fuels. Our national context therefore informs
a measured, balanced and orderly approach to our transition journey.
Our strategy focuses on decarbonising while preserving and growing value,
and minimising social and economic impacts. Our carbon-intensive operations
are the focus of our decarbonisation drive, yet are also necessary to fund
our efforts and contribute to national imperatives. As such, a multitude of
factors were considered in shaping our targets and roadmap development,
while addressing complex and often conflicting stakeholder expectations and
Our target setting and roadmap development was informed by three broad
elements; benchmarking, top-down modelling and a bottom-up analysis.
Benchmarking and top-down analyses determined ambition levels for input
into the bottom-up techno-economic analyses. Financial and just transition
considerations played a role in the phasing-in of technologies and the reduction
in feedstock use. We endeavoured to ensure that affordability, impacts on
employment and emission reductions were positively considered. These
processes were then collated to inform the targets and ambition we set.
Evaluate technical mitigation
options for scope 1, 2 and 3
• Fair share and other science-based1 target
• Nationally Determined Contribution (NDC)
• Understanding carbon budgets
• Required enablers
• Business case
• Emission abatement
• Schedule and
• Ease of integration
Develop pathways to 2050
Integrate, package and
approve final targets
• Combine top-down and bottom-up
• Apply CDR offset approach
• GEC and Board decision-making
• Second and third-party audits
• Comparative assessment against
Accelerating to 1,5oC
cience-based target initiative (SBTi) is still in the process of finalising an oil and gas and chemicals module, which was not available for use. Other science-based approaches were used. We continue to monitor the
landscape and will assess the applicability of these methodologies once released.
Sasol Climate Change Report 2021