Sasol Limited Integrated Report 2021 - Book - Page 23
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Managing our material matters (CONTINUED)
Why this is important
Decarbonise – Decarbonising for sustainability
The impacts of climate change
are well documented and will
intensify unless we act collectively
and decisively. Our coal value
chain is unsustainable and we are
decarbonising while embracing
suitable low and lower-carbon
alternatives as well as energy and
process efficiencies.
Trust – Rebuilding credibility and trust
Sasol 2.0 – Delivering Sasol 2.0
The Sasol 2.0 transformation
programme is crucial to our
reset. It is the pathway for
the change required to reach
a competitive and sustainable
Future Sasol, which is profitable in
a decarbonising and US$45/bbl oil
price world.
Credibility and trust is built on
stakeholders’ opinion that we are
believable, reliable and plausible,
reinforced by an approach built
on principle. This is critical in
maintaining our licence to operate,
our investment attractiveness and
our ability to pursue emerging
opportunities.
•
What we have done
Targets
• 30% reduction in
scope 1 and 2 GHG
emissions by 2030
• Net Zero by 2050
for scope 1, 2 and 3
(Category 11)
• 30% improvement in energy
efficiency by 2030
• Achieve below a 302 million
tons CO2e carbon budget
by CY 2020
•1
00% purchased renewable
electricity by 2026
for International
Chemicals Business*
•1
200 MW of renewable
energy for Energy Business
• Sustainability capex:
10 – 15% by 2030
*E
xcluding South African Chemicals Operations.
• Long-term
gearing
20 – 30%
• Long-term net
debt/EBITDA
1 –1,5 times
• Return to
investment grade
credit rating
• At least
US$2 bn in
proceeds
from asset
disposals
• Deliver
competitive
returns to
stakeholders
• Improve stakeholder
perception using
stakeholder survey
perception results
• Improve ESG
ratings
• Resumption of dividend
once triggers of 1,5 times
net debt: EBITDA and net
debt at US$5 bn reached
• Implemented
customer-facing
operating model by
1 June 2021
• Reduce cash
fixed costs by
R8 – 10 billion by
2025
• Improve gross
margin by
R6 – 8 billion by
2025
•L
imit sustenance
capex to
R20 – R25 billion
per annum in
2022 – 2025
• Limit working
capital to turnover
ratio to below 14%
• Increase free cash
flow by between
R25 – R30 billion
by 2025
• Set 2050 Net Zero ambition and a 30%# GHG reduction target by 2030.
• Achieved long-term gearing and net debt targets.
• 22,75% energy efficiency improvement.
• Recorded 285 million tons against the carbon budget.
• Generated cash proceeds in excess of US$6 billion by end of 2021 and
achieved targeted US$1 billion savings at end of 2020.
• Implemented optimised operating model with customer-facing businesses
and investor-facing lean Corporate Centre.
• Pursued renewable energy investments and signing agreements to purchase
600 MW by 2025 of power with intent to scale-up to 1 200 MW by 2030.
• Implemented business continuity plans to supply customers.
• Stabilised cash flow and balance sheet risks.
• Delivered a strategy-led asset divestment programme.
• Set realistic but challenging and sustainable financial targets.
• Cooperation agreement entered into with Industrial Development
Corporation (IDC) and partnering on eco mobility to explore respective
green hydrogen opportunities in South Africa.
• Social investment amounted to R526,2 million.
• Implemented a centrally coordinated management and delivery approach.
• Achieved a 30% leaner management structure.
• Conserved more than US$1 billion in cash, averting breach of loan
covenants.
• Collaborated with LEN** consortium to bid for production of Sustainable
Aviation Fuel in Germany’s H2Global auction.
What we continue to do
** Linde PLC, ENERTRAG AG and Navitas Holdings (Pty) Ltd
• Progress towards Net Zero emissions by 2050, supported by short-term
10 – 15% sustainability capital expenditure, increased into the future.
• Proactively engage stakeholders to identify and advance initiatives
of mutual importance.
• Maintain 30% energy efficient improvement.
• Regular feedback to key stakeholders and deliver on commitments.
• Support just transition initiatives.
• Invest in social impact initiatives that are aligned with local priorities
in the geographies where we operate.
• Meet our annual financial and non-financial targets.
• Rebuilding trust with key stakeholders and collaborating on key issues
guided by our material matters in the geographies where we operate.
• Develop and deliver to a robust capital allocation framework.
• Obtain green financing in order to unlock a wider pool of hydrogen
opportunities.
• Pursue further partnerships to deliver on our targets.
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Sasol Integrated Report 2021
• Leadership support for Future Sasol.
• Ensure we anticipate skills required and plan for human capital
for low-carbon future.
• Maintain business ownership report on delivery of initiatives.
• Dispose of assets considered non-core.