SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 153
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
PART IV: REMUNERATION IMPLEMENTATION REPORT continued
LTI Plan Outcomes: FY23 LTI Award
The FY23 Long-Term Incentive (LTI) outcomes reflect a mixed performance across key strategic metrics. Notably, significant progress was made in reducing greenhouse gas emissions due to interalia the boiler shutdown,
the introduction of renewable energy and the N2O catalyst implementation. Both the Energy and Chemicals business units exceeded their respective Scope 1 and 2 emissions reduction targets set against a 2017 baseline,
with Energy achieving a 13% reduction (against a stretch target of 4,5%) and Chemicals achieving a 11% reduction (against a target of 8%). These results translated into above-target performance.
Return on Invested Capital (ROIC) showed divergent outcomes by business. The Offshore business did not meet the cost of capital threshold (8% in 2023 and 9,1% in 2024 and 2025), resulting in a zero score for this KPI.
In contrast, the South African business delivered strong returns in FY23 and FY24, exceeding the cost of capital, the FY25 target was missed due to lower operating volumes and impairments.
Relative Total Shareholder Return (rTSR) against the peer group yielded a zero outcome, driven by a substantial decline in share price over the vesting period.
These awards are due to partially vest in FY26 in respect of the performance period 1 July 2022 to 30 June 2025. For the GEC and SVPs, 83,93% will vest and the balance will be deferred for a further two year period.
These LTIs were granted at a price of, JSE R338.12 and R304.25 (ADR $19.40 and $16.81) and will vest at the closing price on the day before the vesting date.
KPI – Key
Performance
Indicator
Holistic focus on
ESG matters
Weighting
25%
Threshold
(Rating = 0%)1
Target
(Rating = 100%)
Achieve a sustainable
3,55% reduction (equating
to 2.3mtpa CO2e) in Scope 1 and
Scope 2 emissions off a 2017
baseline by end FY25:
a) for the Energy business 3,5%
b) for the Chemicals business 5,0%
Achieve a sustainable
4,18% reduction (equating to
2.7mtpa CO2e) in Scope 1 and
Scope 2 emissions off a 2017
baseline by end FY25:
a) for the Energy business 4,0%
b) for the Chemicals business 8,0%
Stretch
(Rating = 200%)
Achievement
a) Energy 25,0% / 12,5%
Achieve a sustainable
(13,0% reduction in emissions)
4,9% reduction (equating to
3.2mtpa CO2e) in Scope 1 and
b) Chemicals 18,9% / 12,5%
Scope 2 emissions off a 2017
(11,6% reduction in emissions)
baseline by end FY25:
a) for the Energy business 4,5%
b) for the Chemicals business 15,0%
Vesting score %
43,93%
% indicates contribution towards the roadmaps of Energy and Chemicals businesses, respectively
Sasol SA
30%
Return on
Invested
Capital (ROIC)2
2023: ROIC (excl AUC) at SA WACC
of 13,5% per annum
2024 and 2025: ROIC (excl AUC)
at SA WACC of 15,4% per annum
(0%)
Offshore businesses
10%
2023: ROIC (excl AUC) at US WACC
of 8,0% per annum
2024 and 2025: ROIC (excl AUC)
at US WACC of 9,1% per annum
(0%)
Relative TSR vs
the peer group3
35%
50th percentile of the
index (17,5%)1
2023: ROIC (excl AUC) at SA WACC
of 13,5% + 1% = 14,5% per annum
2024 and 2025: ROIC (excl AUC)
at SA WACC of 15,4% + 1% = 16,4%
per annum
(30%)
2023: ROIC (excl AUC) at SA WACC
of 13,5% + 2% = 15,5% per annum
2024 and 2025: ROIC (excl AUC)
at SA WACC of 15,4% + 2% = 17,4%
per annum
(60%)
• FY23 and FY24 above
stretch target
• FY25 below threshold
• 40% / 30%
40%
2023: ROIC (excl AUC) at US WACC
of 8,0% + 0,5% = 8,5% per annum
2024 and 2025: ROIC (excl AUC)
at US WACC of 9,1% + 0,5% = 9,6%
per annum
(10%)
2023: ROIC (excl AUC) at US WACC
of 8,0% + 1% = 9,0% per annum
2024 and 2025: ROIC (excl AUC)
at US WACC of 9,1% + 1% = 10,1%
per annum
(20%)
• Averaging below threshold
for all 3 years
• 0% / 10%
0%
60th percentile of the
index (35%)
75th percentile of the
index (70%)
• Below threshold
• 0% / 35%
0%
Total
83,93%
Notes
1
Threshold = 50% vesting at median performance for rTSR; 0% for ROIC; 50% for ESG targets – straight line scoring to be applied between threshold, target and stretch.
2
In the event of divestiture over the three years, earnings and capital values related to such assets sold will be excluded from the ROIC calculations for the full performance period. Capital impaired during the performance period is added back to the denominator.
3
TSR peer group as approved by the Sasol Remcom for FY23 (no changes from FY22).
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