Sasol has denied that it is revising its goals in its climate change commitments.
The petrochemical giant was accused by Shareholder activist group Just Share of weakening its emissions reduction targets. The accusation came after Sasol CEO Simon Baloyi suggested the company might revise its goal for reducing greenhouse gas emissions, citing the need for a “realistic and achievable” approach.
Baloyi told Business Times that he planned to propose a more flexible approach, advocating for a target range of 25% to 35% reductions rather than a single target.
However, Sasol said on Wednesday it remained fully committed to a sustainable energy transition while ensuring that the social and economic impacts of this shift were “managed fairly, especially for vulnerable workers and communities”.
“Sasol is not changing its greenhouse gas reduction targets, but is integrating just transition principles into its pathway towards achieving its existing 30% reduction by 2030,” it said.
The company said while it was not legally required to introduce a binding climate resolution, it would continue to report on its climate strategies in its integrated report.
Commitments
“As part of Sasol’s commitment to conform to new global reporting requirements, we have consolidated the sustainability and climate change reports into the integrated report. Information on our climate change risk management process, response and summary of work under way to address our climate change risks and opportunities are now included in the ESG section.”
While Sasol had previously embraced more ambitious climate goals under its “Future Sasol” strategy, including reaching net-zero emissions by 2050, Just Share believes the company’s recent actions including its reluctance to allow shareholders to vote on its decarbonisation pathway — are inconsistent with its earlier commitments.
The company had previously announced specific targets for reducing scope 1, 2, and 3 emissions by 2030, aiming for a 30% reduction in emissions for its energy business and a 20% reduction in emissions associated with its sold energy products. These reductions were intended to decarbonise major operations in Secunda and Sasolburg, aligning with Sasol’s support of the Paris Agreement and its call for ambitious climate action.
Sasol contributes 5.19% of the national GDP and 12.31% to total government tax revenue while supporting about 500,000 jobs.
In local areas like Govan Mbeki and Metsimaholo, it drives over 65% and 80% of GDP respectively and supports substantial employment and municipal funding. In recent years the company has invested R570.8m in local communities, and R44bn directed towards black-owned businesses.
Although global growth remained steady, Sasol’s operations were affected by evolving energy policies, carbon reduction pressures, and physical climate risks, with diesel demand expected to remain stable while petrol demand declines, it said in its integrated report.
Despite these efforts and concerns, Just Share said Sasol was shifting “the goalposts” and using vague language to evade transparency and accountability.
“Sasol’s continuous moving of the goalposts and extensive use of qualifying language undermines its credibility: the company consistently avoids clear tracking of its performance against targets and does not provide detailed implementation pathways and clear accountability mechanisms,” the organisation said.
Just Share also questioned Sasol’s decision not to publish a stand-alone climate report this year, which it said broke a tradition the company adopted in 2019.
The organisation raised concerns about Sasol’s decision to forgo a shareholder vote on its climate strategy at its upcoming AGM on November 15.
“The decision not to allow shareholders to vote on its decarbonisation pathway this year appears to be a strategic move by Sasol to avoid what would likely be an embarrassing level of shareholder opposition.”
According to Just Share, Sasol is battling to show consistent reductions, with emissions rising for the second consecutive year despite earlier commitments to reduce scope 1 and 2 emissions by 5% in its energy business and 20% in its international chemicals business by 2026.
While it has reported some decreases in emissions, Just Share argued that these were largely tied to production fluctuations rather than dedicated mitigation efforts.
The activist group warned that any further adjustments to Sasol’s targets could affect its regulatory approvals.
“If Sasol does adjust its GHG emission reduction targets, this will expose it to the risk of having approval withdrawn for the sulphur dioxide (SO₂) emissions it was granted for its coal boilers at Secunda by the former minister of forestry, fisheries & the environment.
Update: November 13 2024
This story has been updated with Sasol's response.
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