Stock image of Sasol head office at 50 Katherine Street in, Sandton, north of Johannesburg, in 2019 Picture: Dimpho Maja/African News Agency (ANA)
Sasol said yesterday that it was intensifying its pursuit and commitment to cut its carbon emissions by 30% over the next six years, although that would probably see the company review its pathway towards attainment of the target.
In January this year, shareholders approved Sasol’s controversial climate-change commitment to a decarbonisation pathway towards achieving its 2030 target and 2050 net zero ambition.
However, over the past few weeks, there have been reports that Sasol was reneging on its 30% carbon emissions cut target for 2030. The company responded to that, saying this was “only an example of an approach addressing the complexity” of its transition.
“Sasol remains committed to a sustainable energy transition and work continues to refine our strategic direction, which includes our GHG emission roadmap to 2030 and beyond,” Sasol said yesterday.
It reiterated that its “group target of a 30% reduction by 2030 remains” in place.
However, the company was “in the process of refining our pathways towards achieving this target to ensure that we remain agile, mitigate potential risks and also respond” to new emerging opportunities.
That was especially important given peculiarities and a shifting global landscape that was scrambling for a balance between curbing carbon emissions and ensuring energy supply and security amid slow-paced funding flows into renewable and green energy projects worldwide.
Against that backdrop, Sasol was poised to refine its pathway and strategy to meet its stated targets for carbon emission reduction. It was exploring refinement measures that could introduce shifts in feedstock, energy and products in an effort to provide support for the company’s pathway towards sustainability.
“To this end, we are prioritising value creation opportunities to enable a balanced approach across people, planet and profit considerations,” Sasol said.
In April, Sasol said the government of South Africa had allowed it to switch its emissions measurement mechanisms for the Secunda plant to a load factor as opposed to the previous mechanism that determined emissions based on concentration of particles.
“We will engage with the minister to finalise the regulatory requirements for the decision to take full effect, following which our atmospheric emission licence will have to be varied accordingly,” the company said at the time.
Secunda is Sasol’s biggest emitting asset, accounting for more than 80% of the petrochemicals company’s scope 1 and scope 2 emissions. Data from the company shows Sasolburg a distant second, making up for about 8% of its emissions profile.
Last month, Sasol said it had suffered a R45.5 billion impairment for its Chemicals America business, with total write-downs for its year to June 2024 ballooning to R55.8bn.
Analysts said the material impairments at Sasol’s Chemicals America business included all Sasol’s chemicals operations in the US against the backdrop of an uncertain outlook.
“The outlook for the US Chemicals business is very uncertain, more so now after the impairment as it brings into question the longer-term profitability potential of the business,” “Business Report” quoted Abax Investments portfolio manager Mish-al Emeran saying recently.
“The global chemicals value chain has been under significant pressure with demand concerns stemming from global economic challenges and overcapacity driven by supply growth in China.”
BUSINESS REPORT