Sasol

InfluenceMap Score
C-
Performance Band
60%
Organisation Score
57%
Relationship Score
Sector:
Chemicals
Head​quarters:
Johannesburg, South Africa
Brands and Associated Companies:
Southern Africa Energy, Sasol EcoFT
Official Web Site:
Wikipedia:

Climate Lobbying Overview: Sasol appears to have mixed engagement with climate policy. The company’s top-line communications on climate change appear broadly positive. However, Sasol has also opposed South Africa’s carbon tax, advocated for the country’s Climate Change Bill to be weakened, and continues to support a sustained role for fossil gas in the energy mix.

Top-line Messaging on Climate Policy: Sasol appears broadly supportive of action on climate change in its top-line communications. In its 2022 Climate Change report, published in September 2022, Sasol supported reaching net zero greenhouse gas emissions by 2050, and supported reducing GHG emissions in line with limiting warming to 1.5°C. Sasol also supported the Paris Agreement in its 2022 Climate Change report, and supported an increase in South Africa’s NDC ambition in its 2022 CDP response. Furthermore, in a November 2021 consultation response on the EU Renewable Energy Directive, Sasol also supported the EU's "ambitious climate targets" under the Fit for 55 package.

Engagement with Climate-Related Regulations: Sasol shows mixed support for specific climate-related regulations. Notably, the company appears to have consistently opposed South Africa’s carbon tax. For example, in its September 2022 Climate Change report, Sasol expressed concern about the negative impacts a carbon tax has on Sasol’s business, stating that an increased carbon tax without allowances or incentives would hinder South Africa's low-carbon transition. Sasol also appeared to support weakening South Africa’s Climate Change Bill in a September 2022 submission to a public hearing on the Bill. In its submission, Sasol called for a non-criminal penalty for entities that exceed their carbon budget, stating that an administrative carbon tax penalty without criminalization would be more suitable. Further, in a July 2022 YouTube video, CEO Fleetwood Grobler called for a revision to South Africa’s Integrated Resources Plan, but advocated for a technology-agnostic, cost-effective approach to revising the plans energy procurement targets.

However, Sasol appears to support GHG emissions legislation in South Africa. In its 2022 Climate Change report, the company appeared to support mandatory GHG emissions reporting in South Africa. In its 2021 Climate Change Report, Sasol called for a more ambitious 2030 GHG target in South Africa in line with recommendations by the newly established Presidential Climate Commission. In the same 2021 report, Sasol also supported legislation for carbon budgeting and the mandatory reporting of GHG emissions. Sasol has also expressed support for the South African 12L energy efficiency tax incentive in its 2022 Climate Change report, published September 2022.

Positioning on Energy Transition: Sasol does not appear to fully support the energy transition, advocating for a sustained role for fossil gas in the energy mix alongside renewables and green hydrogen. While Sasol’s messaging on coal has improved, the company continues to support fossil gas. In its 2022 Climate Change report, published in September 2022, the company supported fossil gas as a transition fuel from coal to renewables and supported the South African Oil and Gas Draft Discussion Document and its provisions for gas as a low-carbon fuel. While the report did state that Sasol would prefer South Africa to pursue a fossil-free energy route post-2030, there were no clear timelines for an overall reduction of gas in the energy mix. Sasol has however consistently supported the development of green hydrogen in South Africa in 2022. The company supported green hydrogen production in a May 2022 Mining Weekly article, and supported its use in the transport industry in an August 2022 Engineering News article. Sasol also supported the development of green hydrogen and sustainable aviation fuels (SAFs) in South Africa in its 2022 Climate Change report, published in September 2022. However, in its 2022 Climate Change report Sasol supported the use of fossil fuel and sustainable feedstock in SAF production under the EU Renewable Energy Directive II.

Industry Association Governance: In its 2022 Climate Change Report, Sasol completed a full audit of its alignment with industry associations on climate policy. The audit disclosed some of its own climate policy positions and those of its industry associations, as well as governance processes around its management of misaligned groups. However, Sasol has failed to identify and take action on key industry associations engaged in lobbying activities misaligned with the Paris Agreement, such as the European Chemical Industry Council (CEFIC) and the Japan Chemical Industry Association. In addition, Sasol sits on the board of the Minerals Council South Africa and the regional board of Verband der Chemischen Industrie (VCI), both of which appear to be engaged negatively on climate policy.

InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q4 2022.

A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
44%
 
44%
 
64%
 
64%
 
43%
 
43%
 
78%
 
78%
 
63%
 
63%
 
62%
 
62%
 
53%
 
53%
 
45%
 
45%
 
65%
 
65%
 
57%
 
57%
 
55%
 
55%
 
50%
 
50%
 
67%
 
67%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.