Sasol commits to net zero emissions by 2050

Dear colleagues,

 I am very excited to inform you of our future ambition to be at net zero emissions by 2050. This is in line with our commitment to accelerate our transition to a low carbon world in support of the objectives of the Paris Agreement.

 We confirmed our net zero ambition at our virtual Capital Markets Day, hosted by the GEC, where we informed our investors and other stakeholders of the Group’s updated strategy to deliver Future Sasol.

Furthermore, in aligning with this 2050 ambition we have tripled our 2030 scope 1 and 2 greenhouse gas emission reduction target from 10% to 30%, for Energy and Chemicals. Based on detailed assessments and modelling, our 2030 target can be delivered without divestments and offsets, but through the direct decarbonisation of our existing assets.

Beyond 2030, Sasol has more than one viable pathway to get to our net zero ambition by 2050, with different options to transform our Southern Africa value chain by progressively shifting feedstock away from coal, towards more transition gas, and then, green hydrogen and sustainable carbon over the longer term, as economics improve for these options.

I am confident that the energy transition will offer unique opportunities for Sasol: opportunities to grow, to generate additional sources of revenue, and to make the company relevant for the future.

Our proprietary Fischer-Tropsch (FT) technology, in particular, is well suited to play a meaningful role in a low carbon future, with attractive new and emerging value pools.

Using our advantaged and differentiated FT technology, we will retrofit our existing plants in South Africa to maintain our position in existing markets and introduce new ones over time, such as green hydrogen and sustainable fuels and chemicals, both for domestic and export markets. We believe that FT is uniquely positioned to thrive in a fossil fuel-free world.

Against this backdrop we are setting up a new business, Sasol ecoFT, with the intent to build on our technology leadership, to establish a significant market position internationally. One of the first applications for the technology is likely to be sustainable aviation fuels (SAF), where new regulations are driving demand and existing technology and feedstocks have limitations that FT can address.

We also informed stakeholders that our Sasol 2.0 transformation programme, which is already well underway, will unleash the full potential of our business through enhanced customer centricity, operational excellence and innovation.

As important, our customers will continue to be at the centre of all we do. We will ensure we deliver a best-in class customer experience and invest in building leadership where it matters, leveraging our unique competitive advantages to enable a differentiated value proposition.

Best regards,

Fleetwood Grobler

Sasol President and Chief Executive Officer