Muriel Dube, new chair of Sasol, says her focus will be on ensuring that the petrochemicals giant — the continent’s second-biggest emitter of greenhouse gases and toxic air pollution after Eskom — meets its decarbonisation and sustainability targets.
“The issue is how we’re going to go about doing it. We’re pushing for a balanced approach across our people, planet and profit considerations.”
Sasol announced in 2021 that it was committed to a 30% cut in greenhouse gas emissions by 2030 and reaching net zero by 2050. Critics, including some key shareholders, say there has been no tangible progress towards these goals.
Dube — an Oxford graduate whose CV includes being chief negotiator for the government in UN climate change negotiations, director of atmospheric protection and chemicals management at the department of environmental affairs, and nonexecutive director at Sasol responsible for its climate strategy — disputes this.
“There’s been a huge focus on energy efficiency as one of the key pillars of decarbonisation, and looking at what other fuel sources we can bring on stream.”
So why, according to Sasol’s own 2023 climate change report, have its greenhouse gas emissions been getting worse rather than better?
“What we’ve clarified about the complexity of our emission reduction trajectory is that you’ve got to look at the reality of how much energy efficiency is possible with the current configuration, how much gas can be introduced at what pace, and what sort of renewable energy inputs are possible,” Dube says.
She concedes that “if you look at where we are right now” the argument about toxic emissions remaining the same or worse can be made. “But there is going to be a significant ramp up at the point where the sum total of the efforts currently under way translates into significant reductions going forward.”
Apart from tangible reductions, what stakeholders want to see is more disclosure about outcomes and more accountability if there are no outcomes.
“We’re holding management accountable in terms of making sure we have milestones that we can monitor on an annual basis,” she says.
Will she have the power as chair to hold management accountable?
“Yes. We have an incentive and performance management programme and architecture which means from an accountability point of view there are certain milestones we’re tracking. So we have the levers as the board to hold management accountable for outcomes as we go forward.”
Our job is to balance commercial and production realities with increasing environmental demands of climate activists as well as shareholders. We have to recognise that in some cases there are legitimate concerns
Is there full agreement within management on the way forward?
“Yes, we’ve got a new CEO [Simon Baloyi] and he has outlined a very clear strategy,” Dube says.
But this strategy seems to involve revising the 2030 goal to make it a “moving target”, as Baloyi calls it, instead of the “hard target” of a 30% reduction?
“That’s not what he is saying. What he is saying is that for us to achieve that target we have to be clear about the pathways to getting us there. He’s talking about how we refine those pathways so that we achieve the target but still have a business.”
Sasol’s business is converting low-grade coal into synthetic fuels and chemicals for local and foreign markets.
“He’s not moving away from the commitment that has been made,” she says. “It’s question of how we go about meeting it.”
Will this call for a culture change within the organisation, given Sasol’s record of lobbying against air pollution standards for the best part of 20 years?
“Yes, for us to address the demands we face does requires a cultural shift. Work is under way already to foster a mindset that prioritises sustainability as well as innovation across all levels of the organisation. To encourage teams to think differently about how we deliver our product.”
Dube was nonexecutive director at Sasol responsible for sustainability and decarbonisation when the company persuaded the then environmental affairs minister Barbara Creecy to allow more lenient SO2 (sulphur dioxide) limits for its 17 coal-fired boilers at Secunda, the largest single-point greenhouse gas emitter on the planet.
Where does this leave Sasol’s commitment to reach 5% emissions reduction by 2026 and 30% by 2030?
“The focus is, firstly, that we’re committed to our 2030 target. You can look at how that translates on an annual basis. But the ultimate objective is for us to get to net zero by 2050,” Dube says.
“The dispensation we requested isn’t about us shying away from responsibility, it’s about the company looking at a creative and cost-effective way to meet the challenges it faces. It’s about optimising our environmental road maps.”
Isn’t this the kind of “greenwashing” that climate activists accuse Sasol of?
She admits it’s an explanation that is “lost in translation because there’s a history that keeps being brought up”.
At Sasol’s AGM in November last year, climate activists invaded the stage, causing the company to cancel it. Institutional shareholders Old Mutual Investment Group and asset manager Ninety One, who had made it clear they would be voting against Sasol’s climate change report because it was inadequate, said instead of “cancelling” criticism the company should take it on board.
“The activism from stakeholders is something that we need to look at very constructively,” says Dube.
“Our job is to balance commercial and production realities with increasing environmental demands of climate activists as well as shareholders. We have to recognise that in some cases there are legitimate concerns. We benefit from constructive engagement and we need to create space for that engagement because that is how we are able to sharpen our own practices and build a good relationship with our stakeholders.”
Strengthening stakeholder engagement will be a “key focus” for her as chair, she says, “working closely with our shareholders, employees and communities where we operate to make sure we align our strategic objectives with broader societal expectations”.
Shareholders have complained that efforts to engage with Sasol on the lack of quantifiable information on matters such as cutting greenhouse gas emissions have been futile.
“There’s always room for improvement,” Dube acknowledges. “We need to be open and willing to engage with our stakeholders.”
Given the often fatal impact of its emissions on the health of stakeholders in the communities where Sasol operates, is cutting toxic emissions more than just a business issue?
“The initiatives we’ve implemented over the years are testament to the acceptance that we have an ethical obligation to those communities. We regard it absolutely as a priority that we reduce our greenhouse gas emissions.”
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