SASOL Integrated Report 2025_Final_28 August 2025 - Flipbook - Page 30
INTRODUCTION
ABOUT SASOL
STRATEGIC OVERVIEW
PORTFOLIOS
ESG
REMUNERATION REPORT
DATA AND ASSURANCE / ADMINISTRATION
STRATEGY continued
RESILIENCE OF OUR PORTFOLIO continued
Net Zero
Cooperative World
• Possible stakeholder (shareholders,
non-governmental organisations
and government) response to
proposed strategy;
• Fluctuations in demand for liquid
fuels and chemicals;
• Market and competitive changes for
liquid fuels and chemicals; and
• The executability of the strategy
(eg operating model, partnerships,
capabilities, skills availability and
the financial framework).
In the short term, customers are unwilling to pay for the additional value these product attributes
provide due to focus on affordability. Although targets are ambitious, the business is set up to
successfully implement the strategy – addressing any internal cost challenges, placing products
in markets, making sure commodity products fit requirements, manage go-to-market strategies
properly and ensure that the right skills are in place. Shareholders have shown comfort with
the strategy.
The Net Zero and Cooperative World scenarios have additional pressure to transition and reduce
emissions and there is increased competition in greener chemicals and circular alternatives. There
is also a need for additional investment in emission reductions measures as well as to procure
ETS certificates in Europe post 2026 (as free allocation of ETS certificates phases out). This could
have a significant impact on returns in these scenarios.
Also, the lower oil price adversely impacts Sasol’s robustness. Although the higher carbon footprint
of South African Chemicals is becoming more of a challenge, placement of product will not be an
issue to 2030. Heightened trade tariffs in the Fragmented world increase costs of doing business,
also impacting fuels and chemicals demand. Sasol is exploring and implementing sustainable
solutions including sustainable aviation fuel, renewables energy, renewable diesel, sustainable
feedstocks and greener chemicals, using existing competitive advantages including an existing asset
base, distribution channels, market reach and customer base, as well as Fischer-Tropsch technology
and a spread of skills and capabilities.
These will assist in reducing the carbon intensity of the South African value chain, create new
revenue generating opportunities and improve robustness in all scenarios. In the Cooperative and
Net Zero scenarios the steady growth in demand for greener products is favourable for the new
business development, although increased global competition may challenge access to skills and
increase costs of equipment. The creation of new businesses could potentially assist the Just Energy
Transition by creating jobs and potentially spurring local manufacturing industries. The physical
effects of climate change will be felt more adversely in the Fragmented and Current Pathway scenarios.
~1,5
1,5 - 2
>3
Overall attractiveness for investment
2-3
APPROXIMATE
TEMPERATURE
TARGET (°C)
Qualitative Strategy Robustness Testing to 2030 (with mitigation)
The transition of fossil fuels in
South Africa is likely to lag that
of Europe and other countries.
Hence, the uptake of fossil derived
fuels products in South Africa will
remain for the period to 2030.
The Cooperative and Net Zero
scenarios present greater pressure
to transition, reduce emissions and
move away from coal as a feedstock
for both fuels and chemicals.
SA FUELS AND
CHEMICALS
• Strategy dependency on policy and
regulatory changes;
2030
Demand for chemical products in all
four scenarios is likely to rise due to
an increasing global population and
a growing middle class. International
Chemicals' (IC) products enhance
energy efficiency, reduce waste
and conserve resources. IC offers
customers optionality for sustainable
product selection ranging from
biosurfactants to natural palm-free
options, to synthetic alcohols with
lower carbon intensity.
INTERNATIONAL
CHEMICALS
Here we use a grading system to
evaluate different elements of our
Sasol of the future strategy up to 2030
by inviting a multi-disciplinary team
from different parts of the company to
evaluate the robustness of the
strategy along different themes in
each of the four scenarios. These
themes include:
Current Pathway
Sasol is progressing the GHG Emission
Reduction Roadmap towards a 30%
reduction target by 2030 by adopting
new sustainable energy and feedstock
opportunities, improving energy
efficiency and incubating and scaling
new sustainable opportunities to grow
new value chains. Many of these
activities like renewable diesel,
renewable energy and bio-based
feedstocks, are housed in our Business
Building initiative. The effect of these
new lower carbon opportunities will be
felt across Sasol both in South Africa
and internationally.
Fragmented World
Outcome of qualitative
robustness test
Strong strategy robustness
Medium strategy robustness
SASOL INTEGRATED REPORT 2025
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Weaker strategy robustness
