Sasol Limited Integrated Report 2021 - Book - Page 21
Sustaining value and our trade-offs
Apart from preserving and creating value, there are instances where it is diminished through our activities. When making decisions on how to manage our business, we consider the trade-offs between
capitals: we aim to maximise positive outputs and outcomes and limit negative impacts.
Strong leadership team.
28 725 permanent employees (30 670).
224 non-permanent employees (331).
Investment in employee learning
R983 million (R967 million).
Two work-related fatalities – one before year end, the other after (six).
RCR of 0,26 (0,27).
Wages and benefits R34 billion (R32 billion).
New cases of occupational disease 32 (77).
During the period July 2020 to 30 June 2021, 63 employees lost their lives
due to COVID-19 and COVID-19-related illnesses.
• 1 355 employees unplaced.
• Paid taxes of R6,6 billion (R39,1 billion) in South Africa and R0,9 billion
(R1,8 billion) in Mozambique.
• Spent R1,2 billion (R1,2 billion) on skills development.
• B-BBEE Level 4 (Level 3).
• Black-owned expenditure R23,8 billion (R26,3 billion).
• 16 000 eligible employees in South Africa were beneficiaries of R750 million
worth of Sasol under Tier 1 of the Sasol Khanyisa Employee Share Ownership
• 114,5 bscf of natural gas from Mozambique (112,4 bscf).
• 35,4 mm tons of saleable coal (36,1 mm tons).
• GHG emissions 67 102 kt CO2e (65 856 kt CO2e).
or more detail refer to Climate Change Report, available on
our website, www.sasol.com
Hazardous waste (kilotons) 319 (333 kt).
Non-hazardous waste (kilotons) 180 (195 kt).
Nitrogen oxides (kilotons) 137,6 (135,8 kt).
Sulphur oxides (kilotons) 195,3 (196,3 kt).
Recycled 159 681 thousand cubic metres of water (157 484 thousand
cubic metres), and 125 kilotons of total waste (83 kt).
• Strengthening our employee value proposition as part
of our Sasol 2.0 transformation programme and in response
• Improved the Board’s gender diversity.
• Introduced a hybrid approach to flexible working practices.
• Established entrepreneurship initiative – Ntsika programme.
• The loss of lives at Sasol impacted negatively on all capitals.
• Employee morale and social capital were negatively impacted
by cash conservation measures, and various phases of
• Compromised benefits of physical employee collaboration.
• Limited salary increments positively impacted human and social
capital although negatively impacting financial capital.
• Loss of employee skills from workforce transition has negatively
impacted human and intellectual capital.
• Engaged stakeholders to develop our emission reductions
• Engaged investors to understand concerns after failing to meet
required support threshold for remuneration.
• Supported local communities through meaningful contributions,
including various initiatives during COVID-19.
• Established a Centre for Shared Value Management.
• Enabled employees impacted by workforce transition to
tansition from employment to potential entrepreneurs
through Ntsika Programme.
• Investment in and donations to fenceline communities
reduced financial capital, but will positively impact all capitals
in the long term.
• Employees benefitting from Khayisa ESOP improved human
and social capital.
• While employees affected by workforce transition negatively
impacted human capital, the Ntsika Programme will ultimately
positively impact social capital by developing entrepreneurs.
• Stepping up our 2030 GHG reduction target to 30%# for
scope 1 and 2 emissions and our Net Zero ambition by 2050.
• Prioritised a greater role for renewable energy in our operations.
• Gas production volumes were 2% higher than prior year with
consistent operational performance.
• Drilling campaign suspended due to COVID-19 restrictions and
restarted in August 2021.
• Maintaining steady safe production at Mining.
• Partnering on eco mobility, the LEN consortium on cleaner
aviation fuels and the IDC to collaborate in developing
South Africa’s hydrogen economy.
• Impacted negatively on natural capital by using non-renewable
resources and through our emissions and wastes.
• Competition for natural resources impacted negatively on
human and social capital.
• By converting natural resources into value-added products,
we boosted all other capitals.
• Our partnerships will have a positive impact on natural capital
as we move towards greener feedstocks together with our
Net Zero ambition.
• Market capitalisation R138 billion
• Debt raised R26 billion (R56 billion).
• Equity R152 billion (R156 billion).
• Finance income R0,9 billion (R0,9 billion).
• Finance expense R6,8 billion (R7,3 billion).
• Funding facilities R156,9 billion
Earnings/(loss) before interest and tax (EBIT) R16,6 billion (LBIT R111,9 billion).
Cash generated by operating activities R45,1 billion (R42,4 billion).
Headline earnings per share (HEPS) R39,53 (HLPS R11,50).
Attributable earnings R9,0 billion (loss R91,8 billion).
Net debt to EBITDA 1,5 times (4,3 times).
Gearing 61,5% (117%).
Standard and Poor’s and Moody’s have maintained Sasol’s credit
rating at sub-investment grade.
• Managed our comprehensive response by focusing on self-help
measures, asset disposals and transitioning to Future Sasol.
• Delivered over US$1 billion of cash conservation in FY20 and
exceeded the target in FY21 by more than 100%.
• Disposal of assets worth US$3,8 billion well advanced, of which
US$3,1 billion has been completed.
• Passed interim and final dividend.
• Deleveraging the balance sheet, allowing future resumption
of dividends, decarbonisation of our assets and establishing
new sustainable businesses will have a positive impact on
financial and natural capital.
• Human capital felt impact of cost-saving measures, which
benefitted financial capital.
• Social capital was affected by the absence of dividend payments
• Strengthening our liquidity through our Response Plan and
averting a rights issue had a positive impact on financial capital.
• Property, plant and equipment R198 billion
• Operational presence in 27 countries (30).
7 287 kilotons of saleable production (7 230 kt).
Secunda Operations production (kilotons) 7 610 (7 373 kt).
Natref production 17,7 mm bbl (16,8 mm bbl).
54,2 mm bbl of liquid fuels sales (52,7 mm bbl) in South Africa.
Capital expenditure R16,4 billion (R35,2 billion).
Depreciation and amortisation R17,6 billion (R22,3 billion).
Net impairment of assets R28,7 billion (R112,7 billion).
• Benefitting from easing of lockdown restrictions in South Africa
with increased liquid fuel sale volumes.
• Lifting of overall higher prices and volumes of chemicals,
despite weather-related disruptions and divestments.
• Significant progress on divestments attained, with
asset divestments to the value of US$3,8 billion to date,
of which US$3,1 billion has been realised in proceeds.
• Growth in manufactured capital negatively impacted natural
capital and, in the short-term, financial capital.
• Recovery in production volumes and higher prices had a positive
impact on our financial and social capital.
• Investments to reduce the environmental footprint of facilities
benefitted natural, intellectual, human and social capital,
but came at a cost to financial capital.
• Skilled and experienced employees, industry
thought leaders and experts.
• Our 2 300 patented technologies.
• Digital enablers to create value through
Global patents granted 40 (130).
Total global patents granted 2 300 (2 400).
Corporate bursaries 352 (455).
Invested R1 249 million in research and development (R&D) (R1 233 million).
• Leveraging our expertise in FT technology to participated
in new value pools.
• Refreshing our Purpose to ‘Innovating for a better world’
to guide us in our journey as we transform to a more resilient
and environmentally sustainable business.
• Updating our strategy and resetting our business with our
Response Plan and Sasol 2.0.
• Our FT process is well suited to deliver low-carbon fuels and
chemicals using ‘greener‘ feedstocks which will positively
impact natural and intellectual capital.
• Our refreshed Purpose positively impacts all the capitals.
• Our ambition to achieve Net Zero emissions by 2050 will have
a positive impact on intellectual capital.
• Partnerships with customers, suppliers,
business peers, research bodies.
• Relationships with communities,
governments, regulators, civil society.
• Engagements with investors, shareholders.
• A strong established brand.
Coal to process (kilotons): 17 298 (16 942).
Crude oil processed (mm bbl): 28,7 (27,1).
Natural gas to process (bscf): 141 (90).
Total water used (thousand cubic meters):
138 050 (142 614).
• Total energy used (thousand GJ) 407 741
Key outcomes and outputs*
2020 comparative figures indicated in brackets.
Off 2017 base and excluding Natref.
Sasol Integrated Report 2021