Sasol will table a climate-related resolution at its 2021 annual general meeting (AGM) as pressure from shareholder activists mounts against the synthetic fuel and chemicals producer to do so.
Speaking at a virtual roundtable on Wednesday, Sasol CEO Fleetwood Grobler said though the group stood by its refusal to table binding climate resolutions proposed by shareholder activist groups Just Share and the Raith Foundation at its upcoming AGM, it had decided to table a resolution at the 2021 meeting.
Sasol, like other fossil fuel companies worldwide, has come under increasing pressure to take action on climate change. The group, which makes fuel from coal at its Secunda operation, is the second-largest emitter of greenhouse gas in SA.
On Tuesday, Just Share and the Raith Foundation said Sasol had for the third consecutive year refused to table the resolutions at the AGM, which takes place this year on November 20.
Grobler said Sasol’s position was premised on sound legal advice that the issues raised by the two non-governmental organisations were the domain of the company managers and directors.
He said Sasol did, however, recognise the need to allow the participation of shareholders in its “climate-change journey” without undermining its adherence to the Companies Act.
“To this end, we will ensure at the 2021 AGM of the company that shareholders can exercise a non-binding advisory vote on our climate-change strategy and its implementation,” Grobler said.
“We believe this well-established mechanism under the King IV code and the JSE listing requirements will provide our shareholders with an appropriate channel over and above our engagement efforts to participate in our climate-change journey.”
Under the terms of an advisory vote on the remuneration policy and its implementation report, in the event that at least 25% of voting rights at the 2021 AGM are against Sasol’s climate strategy and implementation report, the board will then commit to a consultation process.
“We wholeheartedly agree with all our stakeholders that climate change is a significant issue,” said Grobler. “It is front and centre of our strategy and we are taking significant steps to reduce our greenhouse gas emissions.”
Sasol aims to reduce its greenhouse gas emissions by 10% by 2030.
Key to Sasol’s decarbonisation of its SA operations is to introduce more gas feedstock into its processes.
As Sasol’s existing gas from its Pande and Temane fields in southern Mozambique is running out, the group is working hard to find a new, affordable supply.
A significant gas find in the Rovuma basin in the far north of Mozambique, which is being developed by Total, could offer a solution.
Grobler said there was significant interest among key stakeholders to pipe Rovuma gas to Southern Africa with Sasol as a key user.
Sasol plans to publish a 2050 road map and associated greenhouse gas reduction targets for its operations in 2021.
In response to Sasol’s commitment for the 2021 AGM, Tracey Davies, Just Share’s executive director, said there was no suggestion in the King Code or JSE listings requirements that companies could table non-binding advisory votes on anything they wish.
“Non-binding advisory votes are only provided for in relation to remuneration. Sasol’s interpretation of the law and regulations changes to suit its agenda,” Davies said.
A commitment to a consultation process if the resolution is not passed by more than 75% further demonstrates Sasol’s lack of ambition, she said.
“Its endless stakeholder engagement processes, deployed as an alternative to tabling shareholder-proposed climate resolutions, just allows Sasol to continue to determine the pace and scale of its transition, which is currently far too slow and not nearly ambitious enough.”
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