Integrated_Annual_Report_2026 - Flipbook - Page 169
INTRODUCTION
SASOL AT A
GLANCE
DRIVING SUSTAINABLE
VALUE CREATION
EXECUTING
STRATEGY
DELIVERING
BUSINESS VALUE
SUMMARISED FINANCIAL
PERFORMANCE
CORPORATE
GOVERNANCE
SUSTAINABILITY
REPORT
REMUNERATION
REPORT
ASSURANCE /
ADMINISTRATION
PART III: REMUNERATION IMPLEMENTATION REPORT CONTINUED
International Chemicals continues to make progress toward its
2030 emissions reduction target through a revised portfolio
of projects, including the United States VPPA concluded with
Akuo in June 2025 and the biomethane purchase agreements
implemented in Italy. The Committee also considered that
International Chemicals only accounts for 4,4% of the Group’s
total emissions and that they remain on track to achieve the
2030 roadmap.
LTI Plan Outcomes: FY24 LTI award
The FY24 LTIs are due to partially vest in FY27 based on
performance over the period 1 July 2023 to 30 June 2026.
For members of the Group Executive Committee (GEC) and
Senior Vice Presidents (SVPs), 50% of the performance-based
awards are expected to vest, with the remaining 50% deferred
for a further two-year period, subject to continued employment.
The awards were granted during FY24 at JSE share prices of
between R238,62 (28 August 2023) and R134,50 (at 22 May
2024) (ADR prices of US$12,80 and US$7,58 respectively)
and will vest subject to the fulfillment of the vesting conditions
on the trading day immediately preceding the vesting date.
Accordingly, the Committee exercised the discretion provided
for in the FY24 LTI rules to exclude this target from the overall
assessment. The FY24 LTI framework specifically allowed for
such discretion to be applied in respect of ESG measures where
unintended consequences or external factors could distort the
intended outcome, recognising the significant uncertainty that
existed in this area at the time the targets were set. Consistent
with its commitment to maintaining the importance of nonfinancial performance measures, and in line with the principles
approved in FY24, the Committee reallocated the weighting to
the remaining ESG targets.
Vesting outcomes:
The outcomes against the Corporate Performance Targets
(CPTs) reflect a balanced performance across the targets
included in the FY24 LTI scorecard.
• Reducing carbon footprint: In assessing performance
against the FY24 ESG targets, the Committee considered
whether the outcome of any target may have been influenced
by unintended consequences that were inconsistent with the
Group’s broader strategic objectives. Following a review of
management’s actions in relation to the International Chemicals
GHG intensity target, the Committee concluded that the target
outcome was not fully reflective of underlying performance and
strategic value creation.
Deliberate strategic decisions to optimise the decarbonisation
roadmap, preserve affordability and improve capital efficiency
resulted in the Committee’s decision to exclude the
Chemicals Business GHG intensity reduction target from the
scorecard. During the performance period, a United States
Virtual Power Purchase Agreement (VPPA) with a project
developer was postponed and capital was reprioritised in
response to prevailing cash flow constraints and the Group’s
broader capital allocation priorities.
These decisions materially reduced the capital requirement
associated with the decarbonisation programme from more
than US$300million to approximately US$30 million, while
maintaining progress toward International Chemicals’ long-term
2030 greenhouse gas reduction commitments. The revised
portfolio is based on lower-capital, higher-return initiatives that
are expected to generate a positive cash flow contribution and
create greater long-term value for shareholders. Importantly,
the underlying strategic objective remains unchanged.
Southern Africa Energy delivered performance above stretch
target levels, reflecting specifically the successful implementation
of emission reduction initiatives and operational improvements
over the performance period.
• Contribution to the circular economy: Performance against
the circular economy measure was underpinned by strong
delivery in biosludge diversion and continued progress in
recycling initiatives across the business.
All biosludge was successfully diverted to gasification, resulting
in no biosludge being landfilled and performance exceeding the
stretch target. In addition, 40 253 tonnes of recyclable material
were diverted from landfills over the performance period. The
shortfall was primarily attributable to delays in the delivery of a
limited number of sponsored sites. Notwithstanding these delays,
waste diversion continued to be achieved across the broader
programme portfolio.
• Procurement spend with Black women-owned businesses: Performance against the 100% Black Women-Owned procurement
spend measure exceeded target, with spend reaching 2,88% of Total Measured Procurement Spend (TMPs), above the target of 2,3%.
This reflects continued progress in advancing supplier transformation and broadening participation by 100% Black woman-owned
businesses in our supply chain.
• Return on Invested Capital (ROIC): Offshore operations remained below threshold across the performance period, mainly due to
impairments, while Sasol South Africa delivered mixed performance over the three years, resulting in an overall outcome of 20%.
• Relative Total Shareholder Return (rTSR): Sasol’s shareholder return ranked below the threshold percentile of the peer group,
resulting in no vesting against this target.
These outcomes resulted in an overall achievement against the Corporate Performance Targets (CPTs) of 72%.
The companies included in the peer group used to assess Sasol’s relative total shareholder return are listed below:
JSE listed sub-group
Chemicals sub-group
AECI
BASF
Continental Resources
AngloGold Ashanti
Dow Inc
Devon Energy Corp
Glencore plc
Eastman Chemicals
Hess Corporation
MTN Group
Lanxess AG
Imperial Oil Ltd
LyondellBasell Industries N.V.
Origin Energy
Solvay
Repsol S.A.
Sibanye Stillwater
Valterra Platinum Ltd
1
1
Energy sub-group
Anglo American Platinum Ltd (Amplats) post name change
SASOL INTEGRATED REPORT 2026
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