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Sasol’s commitment to decarbonisation reaffirmed by overwhelming shareholder support for climate action resolution

Date: 
22 November 2021

Johannesburg, South Africa – Sustainability is central to Sasol’s strategy with a future ambition to be at net zero emissions by 2050. This is in line with the company’s commitment to accelerate its transition to a low carbon world in support of the objectives of the Paris Agreement.

This was reflected at its 42nd Annual General Meeting (AGM), held on Friday, 19 November 2021, where the company received overwhelming support for its first non-binding advisory resolution related to Future Sasol and decarbonising the business. Preceded by extensive stakeholder engagement over the year, Sasol tabled the resolution at the AGM to endorse the company’s 2021 Climate Change Report (CCR), which sets out Sasol’s climate change ambition, targets and actions.

The resolution passed with 96,63% of shareholder votes in favour, highlighting the importance investors are placing on Environmental, Social and Governance matters.

“Climate change management is central to our strategy. Reducing greenhouse gas (GHG) emissions, transforming our operations and shifting our portfolio to products more suited to a low-carbon world are the cornerstones of our strategic plans, with further granularity to be provided as we progress more on this journey,” said Vuyo Kahla, Sasol Executive Vice President for Strategy, Sustainability and Integrated Services.

“Our Future Sasol strategy and our decarbonisation plan is a reflection of extensive stakeholder engagements undertaken in recent years, which have helped to shape our thinking and approach.  We are grateful to our shareholders for the support as reflected in the passing of this resolution,” concluded Kahla.

In summary, the CCR presents the following:

  • Sasol’s support for the goals of Articles 2.1(a) and 4.1 of the Paris Agreement, as set out in its 2030 and 2050 emission reduction roadmaps, in particular it’s just transition plans towards a low carbon future “holding the increase in global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1,5°C above pre-industrial levels”;
  • Sasol’s short-, medium- and long-term quantitative GHG reduction targets (scope 1 and 2) in support of the goals of Articles 2.1(a) and 4.1 of the Paris Agreement for its operations in Eurasia, the United States and South Africa; and
  • Sasol’s medium- and long-term quantitative GHG reduction targets (scope 3: category 11*) and commitment to continue work to set out its scope 3 greenhouse gas emissions’ baseline and other targets.

*Relates to the use of the Company’s sold products and represents approximately 80% of its total scope 3 emissions.

Sasol committed to a 2050 net zero ambition at its Capital Markets Day held on 22 September 2021. In aligning with this 2050 ambition, the company also announced a tripling of its 2030 scope 1 and 2 GHG emission reduction target from 10% to 30% for our Energy and Chemicals business units.  Based on detailed assessments and modelling, the 2030 target can be delivered without divestments and offsets, but through the direct decarbonisation of its existing assets.

Beyond 2030, Sasol has more than one viable pathway to get to its net zero ambition by 2050, with different options to transform its Southern Africa value chain by progressively shifting feedstock away from coal, towards, green hydrogen and sustainable carbon over the longer term, as economics improve for these options.

Other resolutions tabled, including the non-binding advisory resolutions pertaining to Sasol’s remuneration policy and implementation, were all passed with significant support reflected in the votes received. The results of all resolutions tabled at the AGM are available here.

 

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