Climate Risk and Opportunity Management |

Climate Risk and Opportunity Management

Sasol’s Climate Risk Strategy

Primary Categories of Climate Risk

Physical Risks

Direct impacts of climate change on operations—such as extreme weather events, water scarcity, and temperature variability. Sasol monitors these risks at an asset level and has implemented site-specific resilience measures, including water management strategies and infrastructure adaptation.

Transition Risks

Risks from the shift to a low-carbon economy, including regulatory changes, evolving stakeholder expectations, energy market shifts, and reputational concerns. Sasol’s decarbonisation strategy addresses these risks to ensure compliance, competitiveness, and continued access to capital.

Sasol’s approach is comprehensive, forward-looking, and embedded into the core of its business strategy. By balancing the mitigation of physical and transition risks with the pursuit of climate-related opportunities, Sasol is positioning itself for long-term resilience and sustainable growth.

Climate-Driven Opportunities

1. Technology and Innovation
  • Accelerating Fischer-Tropsch platform for Sustainable Aviation Fuel (SAF)
  • Using digital tools for energy efficiency and GHG monitoring
  • Investing in green partnerships and synthetic fuels
2. Renewable Energy Expansion
  • Developing 2 GW of renewable capacity via PPAs
  • Reducing reliance on coal-based electricity
  • Building a new integrated power business
3. Market and Revenue Diversification
  • New revenue streams in green products and carbon credits
  • First-mover advantage in EU and Asia green fuel markets
4. Policy and Compliance Advantage
  • Early investments in renewables and offsets
  • Staying ahead of carbon pricing and penalties
5. Investor Alignment and Capital Access
  • Meeting ESG expectations from shareholders and lenders
  • Accessing climate-linked funding via performance KPIs
6. Reputation and Stakeholder Value
  • Demonstrating climate leadership in South Africa
  • Supporting national and global climate goals

We continue to disclose our climate change management approach in line with the TCFD recommendations. The TCFD approach provides a structured way for us to explore, analyse and identify appropriate responses. These disclosures are referenced from our 2025 Integrated Report.