Climate change and energy efficiency

 

The anticipated policy and physical implications of climate change present a significant potential risk to our business, with climate change being one of the most important challenges we face. In 2016, the United Nations (UN) Paris Agreement came into force, setting new targets for climate change and promoting sustainable economic growth and access to modern energy. This will require collaboration between governments, citizens and businesses. Sasol remains committed to responding to these challenges.

2017 AT A GLANCE

  • Sasol supports the UN Paris Agreement on climate change, seeking to limit global warming to well below 2°C above pre-industrial levels.
  • While we agree that climate change is a global issue, we continue to engage actively with the South African government on climate change mitigation and adaptation policy. A cautious and aligned approach has been adopted, balancing the national priorities of reducing poverty and achieving economic growth with international commitments. In early 2017, the first draft of South Africa’s climate change regulatory framework was released for comment.
  • As a founding signatory to the South African Energy Efficiency Accord (the Accord), we have a long-standing commitment to promoting energy efficiency as a key business driver, in addition to the benefit of GHG reductions. Following the utility energy efficiency improvement Sasol achieved under the Accord for our operations in South Africa, we continued to set appropriate interim improvement objectives for several of our South African operations. Once the South African Department of Energy publishes the new 2030 National Energy Efficiency Strategy, we will set new improvement targets aligned to the national objectives.
  • Our international operations are implementing standard utility energy efficiency measurement and reporting practices. Once baseline performance has been determined, we will set appropriate global improvement targets aligned with the respective national objectives.
  • We are taking steps to understand the resilience of all our facilities to climate change, ultimately reducing the vulnerability of our facilities and infrastructure to potential extreme variability in weather conditions.
  • Sasol’s CDP climate change response for 2017 contains more detailed information on our governance approach, strategy, and risks and opportunities. The CDP response is tailored to responding to the Task Force on Climate Related Financial Disclosures recommendations.
For more information refer to our CDP climate change.

 

OUR CARBON FOOTPRINT

  • We report our greenhouse gas (GHG) emissions consistent with the recommendations of the Intergovernmental Panel on Climate Change (IPCC). Our total global GHG emissions (measured in CO2-equivalent) reduced to 67,6 million tons (Mt) in 2017 from 69,3 Mt in 2016, with our coal-to-liquids process in Secunda being the primary contributor to the improvement in our Group GHG footprint largely due to more stable operations and energy efficiency improvements.

    This figure includes direct emissions associated with our processes and our own road tanker fleets (Scope 1 emissions), as well as the indirect emissions associated with our electricity imports (Scope 2 emissions).

  • Our GHG emissions intensity (tons CO2e per ton of production) decreased to 3,66 in 2017 from 3,68 in 2016, due to a decrease in absolute emissions at our Secunda facility.

 

Sasol is voluntarily taking part in the trial phase of the South African carbon budget process. In total, our budget contemplates a limit of 302 Mt carbon dioxide equivalent over five calendar years (2016 to 2020), making provision for growth. For 2016, Sasol South Africa emitted approximately 55 Mt of direct CO2 equivalent emissions (Scope 1) of our total budget, taking project delivery into account. From 2021 onwards mandatory budgets will be set in line with government’s requirements. We are engaging with government on the proposed methodology and will provide the necessary data to enable the setting of appropriate limits.

Reporting legend

Integrated Report
Annual Financial Statements
Sustainability Reporting
Form 20-F