Sasol is the biggest private emitter of greenhouse gases (GHGs) in South Africa, and one of the biggest corporate emitters of GHGs on earth. The Secunda coal-to-liquids facility is the world’s largest single point source of GHGs. Sasol’s decarbonisation strategy and targets, and whether it achieves them, are crucial to the decarbonisation trajectory of the country.
1.1 Pulling back from emission reduction target?
Despite repeatedly insisting that it remains committed to its 2030 GHG emission reduction target, Sasol’s recent communications strongly suggest it may be preparing to pull back from this commitment. Sasol’s new CEO Simon Baloyi has introduced ambiguous language about “realistic and achievable” goals and a “moving target of between 25-35% GHG emission reduction”, while the company’s latest reports contain many hedging phrases like “optimising the Emission Reduction Roadmap to include value-creation opportunities”.
When questioned about these statements, Sasol has offered vague explanations about “refining pathways” and promised more details at an as-yet-unscheduled 2025 Capital Markets Day. This pattern of communication is particularly concerning considering Sasol’s confident launch of its emission reduction strategy in 2021, when it claimed that it had “identified opportunities that exceeded expectations”.
The company is now suggesting that it needs to redefine its pathway to “Future Sasol”, while failing to provide clear explanations for why its original targets might need revision.
1.2 No climate vote at 2024 AGM
Sasol’s decision not to table a climate vote at its 2024 AGM appears to be a strategic move to avoid what would likely be an embarrassing level of shareholder opposition.
The pattern of declining support for these resolutions – from 94.54% in 2021 to 77.36% in January 2024 – demonstrates growing shareholder scepticism about Sasol’s climate commitments. Major institutional investors like Old Mutual Investment Group (OMIG) and Ninety One Asset Management have already shown their willingness to vote against Sasol’s climate plans. Given Sasol’s recent ambiguous messaging about its 2030 targets and the absence of a separate climate report this year, the company likely anticipates that putting its climate strategy to a vote would result in even lower support levels, potentially falling below a majority endorsement.
By avoiding the vote altogether while claiming to be “optimising” its emission reduction pathway, Sasol can sidestep immediate shareholder scrutiny while it prepares potential revisions to its climate commitments.
