Sasol is perplexed by
Sasol has, in recent months, been engaging several stakeholders across the board, including
Sasol set its initial GHG reduction target in 2019 of 10% reduction by 2030 (on scope 1 and 2 emissions of a 2017 baseline), which was increased to 30% reduction in response to the need to do more to meet the Paris Agreement goals in 2021. To state that Sasol's 2023 Climate Change Report (and resolution) does not include our targets is factually incorrect as pages 3-5 of this Report detail our targets, milestones, ambition, as well as actions and reduction levers.
Further, it is unfounded to state that our 'climate targets have slipped' given that our first major milestone is set to be achieved three years from now. This includes a 5% reduction of greenhouse gases (GHG's) by 2026 for the Energy Business in SA. In FY23, the Sasol Energy Business achieved a ~4% reduction relative to 2017 (contributing towards the total Sasol group reduction). Our first tranche of renewable energy will be online by Q1 CY24, namely the Msenge wind farm in the Eastern Cape, to enable green hydrogen commercialisation in Sasolburg.
Sasol has constantly communicated that it is not in a position to follow a smooth year-on-year emission-reduction trajectory, as is done with most climate models, because our operations are highly integrated with long lead times needed to integrate capital-intensive emission-reduction projects. This has been communicated consistently since inception of our GHG reduction targets.
Sasol, as a responsible corporate citizen, is committed to transparent disclosures based on the TCFD (
And lastly, regarding climate change targets in our incentive plans, Sasol has reported extensively on the inclusion of climate change (and other ESG as well as financial targets), in our remuneration report.
Climate related targets have consistently been included in the short-term and long-term incentive plans since 2020. Even Sasol's 2022 Remuneration Report stated that mainly due to factors outside of management's control, the delivery of 200MW of renewable energy by
We want to emphasise that Sasol is not reversing or scaling back our 2026 commitments, nor have we changed our emissions reduction target, associated levers or strategy.
We also believe it is incorrect to assert that one independent non-executive director, by virtue of chairing a committee that supports the Board in overseeing the company's focus on its decarbonisation pathway, is, by that fact alone, ultimately accountable for climate change. The Sasol Board in its entirety is accountable for climate change as a material matter affecting the Company.
Institutional investors often follow the AGM voting recommendations of proxy advisory companies. Sasol has received and considered a report from
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