Scoreboard of our six capitals

HUMAN capital

Key Inputs

To grow and steer our business and operate our facilities safely and efficiently, we require high-performing, innovative and diverse people with the right skills and experience.

  • A safe, healthy, engaged and productive workforce of
    30 900 people with relevant skills, knowledge and experience
  • A strong leadership team, driving a culture of high performance
  • More than 22 000 service providers, delivering to agreed terms

TRADE-OFFS

The reduction since 2012 in our workforce and spending with service providers has negatively impacted human and social and relationship capital. However, by enabling Sasol to achieve cost-saving targets and withstand the low oil price environment, it has benefited financial capital. By making better use of our own employees, we have grown our in-house skills, supporting intellectual capital.

Human capital OUTCOMES

    2017  2016 
Amount paid in wages and benefits  R26,9bn  R26,4bn 
Number of work-related employee and service provider fatalities 
Recordable Case Rate (RCR) 0,28  0,29 
Investment in employee learning  R970m  R678m 
Artisans trained  1 160  758 
Fatal-injury frequency rate  0,006  0,002 
New cases of occupational disease  39  55 

ACTIONS TO ENHANCE OUTCOMES

  • Continuous work to improve employee safety
  • Refreshed our action-orientated values and efforts to meaningfully improve our diverse and inclusive workforce
  • Building and maintaining critical skills and capability, despite cost-containment initiatives, that allow employees to deliver high performance
  • Focused talent sourcing and succession planning

 

Social and relationship capital

Key Inputs

To create an enabling environment for operations and investment, we integrate the needs of our stakeholders into our business and we deliver on our commitments.

  • An employee relations culture that encourages engagement with employees and recognised trade unions
  • The sustained confidence of investors
  • Effective partnerships with customers, suppliers, business peers as well as sector and research bodies
  • Engagement with our fenceline communities, governments and regulators

TRADE-OFFS

We invest in the communities in which we operate through social investment programmes that reduce our financial capital, but in the longer term enable growth in this capital stock. By supporting enterprise development, we boost manufactured, intellectual and financial capital. Our impact on natural capital has undermined trust with certain stakeholders, but through our environmental awareness campaigns, we are able to improve both natural and social and relationship capital.

SOCIAL AND RELATIONSHIP CAPITAL OUTCOMES

    2017  2016 
Taxes (direct and indirect) paid to South African government  R35,6bn  R36,8bn 
Spending on skills development and social investment  R1,6bn  R1,2bn 
Broad-Based Black Economic Empowerment status  Level 8  Level 8 
Person-days production lost to strike action  63 119  13 016 

ACTIONS TO ENHANCE OUTCOMES

  • Leveraging job-creation projects to bring basic services to communities
  • Investing in numerous educational programmes from early childhood and teacher development to bursaries
  • On-the-ground engagement by Joint CEOs with all major stakeholder groups
  • Supporting entrepreneur development, municipality capacity-building in Secunda
  • Facilitating local recruitment drives to register job seekers with Department of Labour in towns around Secunda
  • Acknowledging that some traditional ways of engaging are no longer appropriate
  • Launching formal complaints framework for local community engagement
  • Fostering positive employee and union relationships informed by trust and respect
  • Committed to contribute meaningfully to transformation in South Africa through B-BBEE initiatives
NATURAL capital

Key Inputs

We require natural gas, shale gas, coal and crude oil as well as air, water, land and energy to convert hydrocarbon reserves into value-adding product streams.

  • Coal to process (dry ash-free basis) (kilotons): 17 961
  • Crude oil processed (mm bbl): 32
  • Natural gas to process (bscf): 97
  • Total water used (thousand cubic meters): 137 061
  • Total energy usage (thousand GJ): 396 844

TRADE-OFFS

We impact negatively on natural capital by using non-renewable resources, and through our emissions and wastes. We work to minimise these (see SR). In some instances, we also impact adversely on human and social and relationship capital through, for example, competition for resources such as water. However, by converting natural capital into value-added products, we boost the stocks of all the other capitals.

NATURAL CAPITAL OUTPUTS

    2017  2016 
Total greenhouse gas emissions (CO2 equivalent) (kilotons) 67 632  69 250 
Greenhouse gas (GHG) emissions intensity (CO2 equivalent/ton product) 3,66  3,68 
Nitrogen oxides (NOx) (kilotons) 152  156 
Sulphur oxides (SOx) (kilotons) 202  223 
Particulates (fly ash) (kilotons) 10  10 

ACTIONS TO ENHANCE OUTCOMES

  • Committing to promoting sustainable ambient air quality improvement in South Africa
  • Progressing our South African volatile organic compound emissions abatement and coal tar filtration projects
  • Setting targets for water and energy efficiency
  • Supporting the UN Paris Agreement 2016
  • Working on water conservation and demand management projects
  • Improving on-site waste disposal practices
FINANCIAL CAPITAL

Key Inputs

We use cash generated by our operations and investments as well as debt and equity financing to run our business and fund growth.

  • Market capitalisation of R239 billion
  • Debt raised to execute capital investments of R13 billion
  • Finance income of R1,6 billion
  • Funding facilities of R136 billion, of which R82 billion has been utilised

TRADE-OFFS

By applying financial capital we sustain and grow our business, with positive impacts on manufactured, human, intellectual and social and relationship capital, and negative impacts on natural capital.

FINANCIAL CAPITAL OUTCOMES

    2017  2016 
Operating profit  R31,7bn  R24,2bn 
Cash generated by operating activities  R44,1bn  R54,7bn 
Net debt to EBITDA (ratio) 1,13  0,56 
Net borrowings to shareholders’ equity (gearing) 26,7%  14,6% 
Headline earnings per share  R35,15  R41,40 
Earnings attributable to shareholders  R20,4bn  R13,2bn 

ACTIONS TO ENHANCE OUTCOMES

  • Entering into commodity and currency hedges as part of our financial risk mitigation strategy, to protect the balance sheet
  • Intensifying our risk management processes to enable us to better understand the risks we face
  • Defined a capital allocation model to enhance shareholder returns
  • Considering alternatives to fund our capital growth investments
Manufactured capital

Key Inputs

Investing in plant and equipment allows us to convert hydrocarbon resources into high-value product streams and operate reliably. It also helps reduce our environmental footprint and enables us to comply with regulatory requirements.

  • Property, plant and equipment of R159 billion
    (carrying value)
  • Assets under construction of R131 billion
  • Exploration, development, production, marketing and sales operations in 33 countries

TRADE-OFFS

By pursuing our growth projects we are increasing the stock of manufactured capital, but impacting natural capital and, in the short-term financial capital. Our commitment to reduce the environmental footprint of our existing facilities will however benefit natural, intellectual, human and social and relationship capital.

Manufactured capital oUTCOMES and outputs

  2017  2016 
Capital expenditure (including capital accruals, excluding Canada settlement) R60,3bn  R70,4bn 
Capital expenditure in South Africa  28%  24% 
Sustenance capital expenditure  R17,2bn  R17,0bn 
Depreciation and amortisation  R16,2bn  R16,4bn 
Net impairment of assets  R1,3bn  R12,3bn 
Record production volumes at Secunda Synfuels Operations  7 834kt  7 779kt 

ACTIONS TO ENHANCE OUTCOMES

  • In the US, progressing construction of the LCCP and joint venture HDPE plant
  • Advancing project to reduce VOC emissions in South Africa
  • In Mozambique, drilling first six wells in PSA licence area and debottlenecking PPA plant, supporting our Southern African growth drive
  • Complete first phase of sixth fine ash dam in South Africa
Intellectual capital

Key Inputs

Our proprietary or licensed technologies, software, licences, procedures and protocols support Sasol’s competitive advantage.

  • Skilled, experienced and technically qualified employees, industry thought leaders and experts that enable Sasol to respond to the constantly changing environment
  • Our patented technologies
  • Our business processes and management systems

TRADE-OFFS

By investing in intellectual capital, we reduce the stocks of financial capital in the short term. However in the longer term financial capital, as well as manufactured, natural, human, and social and relationship capital, are likely to be enhanced by our commitments. By further investing in our intellectual capital we seek opportunities to respond to clean fuels and other environmental legislation ultimately benefiting natural capital.

Intellectual capital outcomes

  2017  2016 
Number of new patents issued  190  239 
Total worldwide patents held  2 216  2 023 
Investment in research and development  R1 077m  R1 105m 
Investment in bursary scheme  R53m  R49m 
Number of bursaries   473  369 
Number of mentoring coaches  429  410 

ACTIONS TO ENHANCE OUTCOMES

  • Investing in research and development and partnerships to reduce our environmental impact and develop new technologies despite the low oil price environment and RP
  • Providing training and skills development for Sasol artisans, accountants and engineers
  • Driving excellence in science, technology, engineering and mathematics education
  • Focusing on continuous improvement to address the structural shift in energy prices by sustainably improving our margin contribution and cost base delivery

 

 

Reporting legend

Integrated Report
Annual Financial Statements
Sustainability Reporting
Form 20-F