Integrated_Annual_Report_2026 - Flipbook - Page 97
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
ENVIRONMENT CONTINUED
Climate change continued
OPTIMISED EMISSION
REDUCTION ROADMAP (ERR)
PROGRESS
Towards reducing carbon intensity while growing value
MAINTAINING
CAPITAL
FOCUS
The programme capital is maintained within the
reduced range of ~R4 – 7 billion, ensuring disciplined
capital expenditure and optimal value realisation.
OPTIMISED
BOILER
TURNDOWN
In April 2025, Secunda achieved a one boiler
equivalent turndown, marking a key milestone.
Further projects are progressing to enable
additional boiler equivalent turndowns towards
the 2030 GHG reduction target. For fine coal
management, the project teams are progressing
more effective alternatives, to unlock future value.
RENEWABLE
ENERGY (RE)
To date, Sasol has secured ~1,37GW of renewable
energy capacity via signed power PPAs, of which
~510MW is already online. This underpins confidence
in the ambition to scale renewable capacity to 2GW
by 2030, supporting the transition from coal-based
electricity to cleaner, cost competitive energy and
creating the foundation for a power business.
Reduce absolute
scope 1 and 2 emissions
for Southern Africa Energy and Chemicals
and the International Chemicals businesses
from FY17 baseline
by
SUSTAINABLE
MARKET
MECHANISMS
30%
by 20301
1
International Chemicals (IC) Progress
Excludes Natref, Mozambique and Air Liquide sites.
The roadmap is targeted to be fully implemented by
April 2030, with measurable emissions reduction
expected in FY31.
ENERGY
EFFICIENCY
Carbon credits and Renewable Energy Certificates
(RECs) provide flexibility in managing hard-to-abate
residual emissions. During FY26, approximately
3,8 million carbon credits were retired across
Secunda Synfuels and Sasolburg Operations.
Building on the foundation established to date,
Sasol continues to strengthen its carbon market
capabilities to support decarbonisation objectives,
future compliance requirements and value creation
opportunities. High-quality carbon offset projects can
deliver verified climate benefits while contributing to
community development, employment creation and
more resilient local value chains.
To date, Sasol has achieved an 18% energy efficiency
improvement relative to the 2005 baseline. FY26
performance reflects steady progress, supported
in part by the successful implementation of the
destoning project at Secunda. Overall energy
consumption has remained well controlled, even as
production volumes have increased.
Looking ahead, delivery of the 30% energy efficiency
improvement target by 2030 will be enabled
through a balanced portfolio of operational, digital,
and capital interventions. These initiatives are being
systematically embedded within Sasol’s broader
decarbonisation and asset optimisation roadmap.
* PPAs in conjunction with Air Liquide
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96
By the end of FY26, emissions were approximately 24% below the
FY17 baseline:
• Around 16% (~450 kt) of the reduction is driven by structural
abatement measures
• The remaining 8% reduction reflects lower asset utilisation
Looking ahead, IC plans to deliver a further ~430 kt between FY27 and
FY30 to achieve the 30% target
This trajectory will enable IC to close the remaining gap while
maintaining a disciplined, value-driven approach to decarbonisation.
CARBON INTENSITY DOWN, SHAREHOLDER VALUE UP
Sasol’s ERR reflects responsible action
to reduce GHG emissions while
increasing long term value. Building
on this foundation, Sasol announced
its optimised ERR at the May 2025
Capital Markets Day. An integrated
approach to innovation and profitability
continues to drive this optimisation,
supported by strategic roadmaps
that ensure regulatory compliance
while unlocking resilient and attractive
growth pathways.
MAY 2025
Capital Markets Day
Sasol International Chemicals scope 1 and 2 emission reduction
(kt)
3 200
Achieved
24%
2 800
plan
2 400
2 000
1 600
17 (baseline)
18-25
26
27–30
30 (target)
IC GHG emissions were ~24% lower than the 2017 baseline. Lower emissions were driven by a 16%
cut achieved through the ERR and the balance attributed to lower utilisation. Renewable electricity,
biomethane and energy efficiency investments are expected to deliver the remaining absolute
emissions reductions required to achieve the 30% reduction target by FY30.
International Chemicals has reached a significant milestone in its
commitment to reducing greenhouse gas emissions by entering into
several biomethane purchase power agreements (BPAs) with CH4T
and farmers, Italian producers of biomethane. These agreements will
support the decarbonisation of the Augusta site.
• The supply of ~50 million Sm3/year of biomethane has
commenced in Q3 of FY26
• This will cover ~30% of Augusta’s natural gas demand
• This will deliver an annual reduction in GHG emissions of ~95 kt
