Sasol Limited Integrated Report 2021 - Book - Page 10
The can-do spirit of Team Sasol
is ensuring that we will continue
to overcome challenges in front
of us. As a pioneering business,
we will become pioneers once
more, ensuring a sustainable
The world continues to find itself in an unprecedented time, with roughly 18 months having passed since the World Health
Organization declared COVID-19 a pandemic. With well over four million lives lost, the worst pandemic in a century continues
to inflict significant economic, social and health disruptions the world over, notwithstanding increased momentum in
A landmark report from the UN Intergovernmental Panel on Climate Change, released in August 2021, confirmed the need for
deep GHG emission reductions to stabilise the climate.
These two critical macro-level events present significant uncertainty for the global economy and are factors we have
deliberated on at length to inform both short- and long-term decisions, as well as our strategic plans.
Meeting shareholder promises
To regain lost credibility resulting from our past performance,
particularly in relation to delivery of the Lake Charles
Chemicals Project (LCCP), the Board kept a watchful eye on
the promises we committed to deliver on this year.
I am pleased that under Fleetwood’s leadership, Team Sasol
met all the short-term targets for financial year 2021 (FY21),
and exceeded expectations on several. This has resulted in
a deleveraged balance sheet and avoiding the need for a
rights issue. This has allowed us to place the organisation on
a much stronger footing to tackle our future opportunities
and challenges. With a fundamentally reset balance sheet,
new operating model and focused portfolio of assets to
drive value creation, we have a robust foundation in place to
deliver Future Sasol.
Notwithstanding our much-improved financial position,
we must continue to act prudently to ensure we can
withstand any potential fallout from the global uncertainty.
For this reason, the Board has again decided to pass on
paying a dividend. We will restore dividend payouts once our
net debt position is below US$5 billion and our net debt to
EBITDA cover is 1,5 times.
Credible investment proposition
Looking longer term, with the Board’s oversight, Sasol’s
management team has updated the strategy for the
organisation. Our commitment to shareholders is to
ensure value creation well into the future and we believe
we now have a credible pathway to realise Future Sasol –
a competitive, relevant and, above all, greener company.
We have proven our resilience and commitment to deliver
on our promises this past year, and I believe this bodes well for
what we can achieve going forward. I have full confidence in
the management team’s ability to deliver on our strategy.
Furthermore, by fostering inclusivity and supporting
transformation as well as leading by example we will benefit
from the collective contribution from all at Team Sasol.
Central to Future Sasol are our plans to accelerate the
decarbonisation of our business.
In 2021, we sharply increased our 2030 emission reduction
target for our Energy Business from the previous at least
10% commitment to a 30%# reduction and also set an
additional 30% reduction target for our International
Chemicals Business##. This is underpinned by concrete plans
to transform our operations, putting us on a path to achieve
our Net Zero emission ambition by 2050. Our targets also
demonstrate our firm commitment to transition to a lowercarbon world and that we accept climate science, hence the
strong alignment with the Paris Agreement.
Of course there remains a view that we must transition
quicker. We acknowledge and, in fact, appreciate these
perspectives. We have reflected deeply on what is achievable,
taking into consideration constraints that range from capital
and technology, to human capital skills and capabilities, and
believe our plans will progress at the appropriate pace to
ensure a just energy transition.
Off 2017 base and excluding Natref.
Excluding the South African Chemicals Operations.
Furthermore, and in response to feedback from certain
shareholders, we will table a resolution on climate change that
will be put to a vote at our 2021 Annual General Meeting (AGM).
1 September 2021. Trix is a highly respected Director who
qualified as a Chartered Accountant in 1982 and is a seasoned
finance professional, a worthy successor to Colin.
Additionally, we have linked the GHG emission-reduction
targets with executive remuneration. This ensures
management is appropriately incentivised to meet the
targets set to decarbonise our operations.
On behalf of the Board, I convey our sincerest appreciation to
Colin for his outstanding contribution of more than 12 years.
He served the Board and our shareholders with distinction
and we wish him all the best for the future.
Commitment to zero harm
At the end of financial year 2022, Paul Victor will step down
as Chief Financial Officer (CFO) and Executive Director.
Hanré Rossouw has been appointed as CFO designate and
Executive Director designate to succeed Paul. Hanré will join
Sasol on 4 April 2022 and will assume Executive Director and
CFO positions on 1 July 2022.
In this past financial year we experienced one tragic
workplace fatality, Mr Samuel Molumo, and post year end
Mr Fraser Norris succumbed to his injuries from a separate
work-related incident. We extend our heartfelt condolences
to their families, friends and colleagues.
In fulfilling our safety covenant, the Board holds management
accountable for providing a safe working environment to
all our people. Management’s interventions, in particular
through the prevention of high-severity incidents
programme, have provided demonstrable evidence that we
are on the right trajectory with notable decreases in key
indices, including lost workday cases, the recordable case
rate and fatalities.
Any loss of life is unacceptable, and we will continue to
set appropriate parameters to ensure management meet
Leadership and governance
Diversity and experience of the Board is vital to support
the delivery of our strategy and creation of value. Ensuring
the Board has an optimal mix of skills and experience is key
to fulfilling our fiduciary duties in the best interests of all
This past year we welcomed Stanley Subramoney as
Independent Non-Executive Director and member of the Audit
Committee with effect from 1 March 2021. Stanley, a Chartered
Accountant and highly experienced director and business
executive, brings significant audit experience to the Board and
we are already benefitting from his knowledge and skills.
Upon the retirement of Colin Beggs as Independent
Non-Executive Director and Chairman of the Audit Committee,
Trix Kennealy, also an Independent Non-Executive Director,
assumed Chairmanship of the Audit Committee on
Sasol Integrated Report 2021
We will commemorate Paul’s time at Sasol closer to his
departure and we look forward to welcoming Hanré.
FY21 was a watershed year for our organisation and delivery
against our targets was critical to set the right foundation for
us to realise Future Sasol. With a clear pathway defined for
our strategy, I have every confidence that Sasol will deliver.
I thank my fellow Directors for their commitment and
excellent contributions to the Company over the past year.
I also thank Fleetwood and his management team for leading
the organisation through one the most challenging periods in
our 71-year history.
I extend my sincere appreciation to Team Sasol, this great
Company’s diverse and committed employees who have
proven their resilience and ability to rise above any challenge,
time and time again.
I would also like to express my appreciation to Sasol’s many
stakeholders for entrusting us with the leadership of this
iconic Company and for your continued support.
20 September 2021